Ares Commercial Real Estate Corp holds annual meeting

On Tuesday, Ares Commercial (NYSE:ACRE) Real Estate Corporation (ACRE), a real estate investment trust currently trading at $4.61 with a notable 12.85% dividend yield, conducted its 2025 Annual Meeting of Stockholders. According to InvestingPro analysis, ACRE maintains strong liquidity with current assets significantly exceeding short-term obligations. The meeting saw the election of three Class I directors who will serve until the 2028 annual meeting, ratification of Ernst & Young LLP as the independent registered public accounting firm for the year ending December 31, 2025, and approval of executive compensation on a non-binding advisory basis. Additionally, stockholders favored an annual advisory vote on executive compensation, which the company will include in future proxy materials until the next required vote on the frequency of such advisory votes.

The voting results for the election of directors were as follows: William L. Browning received 20,489,772 votes for and 1,438,366 votes withheld; Edmond N. Moriarty, III had 16,170,769 votes for and 5,757,369 votes withheld; and Rebecca J. Parekh garnered 18,280,529 votes for and 3,647,609 votes withheld. All three directors faced 17,620,714 broker non-votes each.

The ratification of Ernst & Young LLP as the company’s independent auditor passed with 38,545,563 votes for, 767,405 against, and 235,884 abstained.

The non-binding advisory vote on the compensation of the company’s named executive officers resulted in 19,652,363 votes for, 1,929,540 against, and 346,235 abstained, along with 17,620,714 broker non-votes.

Lastly, the frequency of future stockholder advisory votes on executive compensation saw 20,599,674 votes in favor of holding the vote every year, 243,302 for every two years, 347,506 for every three years, and 737,656 abstentions. There were also 17,620,714 broker non-votes on this proposal.

This press release statement is based on the latest SEC filing by Ares Commercial Real Estate Corporation. While the company wasn’t profitable in the last twelve months, InvestingPro analysts expect a return to profitability in 2025. The stock currently appears undervalued according to InvestingPro’s Fair Value analysis, with 6 additional exclusive insights available to subscribers through the comprehensive Pro Research Report.

In other recent news, Ares Commercial Real Estate Corporation reported first-quarter 2025 earnings per share (EPS) of $0.17, significantly exceeding analyst expectations of $0.04. Despite this strong EPS performance, the company’s revenue slightly missed projections, coming in at $14.95 million against the expected $15.22 million. Ares has also made strategic moves to reduce its office loan portfolio by 25% and lowered its net debt-to-equity ratio to 1.2x, enhancing its financial stability. The company maintains a strong liquidity position, with $147 million available as of early May 2025, which it plans to use for selective new loan originations, share buybacks, and strategic debt repayment. Analysts from firms like JPMorgan and Citizens JMP have shown interest in Ares’ risk management and investment strategies, particularly regarding its office loans and potential new investments. Ares’ CEO, Brian Donahoe, emphasized the company’s cautious approach to new investments and its commitment to evaluating market opportunities. The company has also declared a regular cash dividend of $0.15 per common share for the second quarter of 2025. These developments reflect Ares’ strategic financial management and resilience amid a volatile market.

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