Ares Commercial Real Estate reported a GAAP net loss of approximately $11 million or $0.20 per diluted common share for Q2 2025.
Distributable earnings for Q2 2025 were a net loss of approximately $28 million or $0.51 per diluted common share, including a $33 million realized loss related to the exit of a Massachusetts office life sciences loan.
Excluding the realized loss, distributable earnings were approximately $5 million or $0.09 per diluted common share.
Net debt-to-equity ratio, excluding CECL, was stable at 1.2x quarter-over-quarter and down from 1.9x year-over-year.
Outstanding borrowings decreased 6% quarter-over-quarter and 39% year-over-year to $889 million.
The Board declared a regular cash dividend of $0.15 per common share for Q3 2025, with an annualized dividend yield above 13% based on the stock price as of July 31, 2025.
The CECL reserve declined by approximately $20 million to $119 million, representing about 9% of the total outstanding principal balance of loans held for investment.
The company collected $30 million in repayments during Q2 2025, nearly three times the amount collected in the first half of 2024, strengthening liquidity and the balance sheet.
Unfunded commitments were reduced by 50% quarter-over-quarter and 58% year-over-year to $37 million.
Cash NOI was lower primarily due to a one-time PENN 1 ground rent true-up payment and free rent associated with backfilling known move-outs.
Generated $1.5 billion of net proceeds from sales, financings, and the NYU deal, paid down $965 million of debt, and increased cash by $540 million, resulting in cash balances of $1.36 billion and total liquidity of $2.9 billion.
Lower net interest income from retail preferred repayments and lower NOI from asset sales were offset by lower real estate taxes at THE MART net of tenant reimbursements.
Net debt-to-EBITDA improved by 1.4 turns to 7.2x from 8.6x, and fixed charge coverage ratio is steadily rising.
New York office occupancy increased to 86.7% from 84.4% last quarter, mainly due to the full building master lease at 770 Broadway.
Second quarter comparable FFO was $0.56 per share, beating analyst consensus of $0.53 and essentially flat compared to last year's second quarter.
Revenue grew 9% on an organic constant currency basis, surpassing the 3% to 5% guidance range; excluding mortgage, growth was 6.5%.
Share repurchases totaled $47 million through mid-July, supporting disciplined capital deployment.
TransUnion exceeded all key financial guidance metrics in Q2 2025, delivering high single-digit organic revenue growth for the sixth consecutive quarter.
U.S. Markets segment revenue increased 10%, with Financial Services growing 17% and 11% excluding mortgage.
Dafinchi