Ares Commercial Real Estate

Management prioritized de‑risking, liquidity and measured re‑origination, which we view positively. However, the external management structure charges a 1.5 percent base fee on equity and includes a termination fee and potential incentive fees, structurally lowering through‑cycle returns to common shareholders.

The board extended a 50 million dollar repurchase program through July 2026, but no shares were repurchased in 2024 or YTD 2026 despite the stock trading materially below GAAP book for extended periods, suggesting limited appetite to exploit clear accretion. Dividend was reset to 0.15 dollars and appears better aligned with earnings power.