Ares Commercial Real Estate Corporation ("ACRE" or the "Company") (NYSE:ACRE) declared a second quarter 2020 cash dividend of $0.33 per common share. The dividend is payable on July 15, 2020 to stockholders of record as of the close of business on June 30, 2020.
"When evaluating our second quarter dividend, we considered several factors, including further improving our liquidity position from anticipated loan sales, our second quarter core earnings from operations outlook, and projected future cash flows," said Bryan Donohoe, Chief Executive Officer of ACRE. "During the current market disruption, we will continue to evaluate our liquidity and cash flow needs each quarter when determining shareholder dividends."
"Our loans continue to perform well with approximately 96% of our portfolio as measured by outstanding principal balance successfully making May and June 2020 debt service payments," said Tae-Sik Yoon, Chief Financial Officer of ACRE. "We are also continuing to work to increase our liquidity and shortly expect to generate approximately $26 million in additional proceeds, after which we will have approximately $80 million of cash on hand."
About Ares Commercial Real Estate Corporation
Ares Commercial Real Estate Corporation is a specialty finance company primarily engaged in originating and investing in commercial real estate loans and related investments. Through its national direct origination platform, the Company provides a broad offering of flexible and reliable financing solutions for commercial real estate owners and operators. The Company originates senior mortgage loans, as well as subordinate financings, mezzanine debt and preferred equity, with an emphasis on providing value added financing on a variety of properties located in liquid markets across the United States. Ares Commercial Real Estate Corporation elected and qualified to be taxed as a real estate investment trust and is externally managed by a subsidiary of Ares Management Corporation. For more information, please visit www.arescre.com. The contents of such website are not, and should not be deemed to be, incorporated by reference herein.
Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which relate to future events or the Company’s future performance or financial condition. These statements are not a guarantee of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including the returns on current and future investments, rates of repayments and prepayments on the Company’s mortgage loans, availability of investment opportunities, the Company’s ability to originate additional investments and completion of pending, and expected sales of, investments, the availability of capital, the availability and cost of financing, imposition of margin calls or valuation adjustment events in connection with such financings, market trends and conditions in the Company’s industry and the general economy, the level of lending and borrowing spreads and interest rates, commercial real estate loan volumes, the impact of COVID-19 and significant market volatility on our business, our borrowers, our industry and the global economy, our ability to pay future dividends at historical levels or at all and the risks described from time to time in the Company’s filings with the Securities and Exchange Commission. Any forward-looking statement, including any contained herein, speaks only as of the time of this press release and Ares Commercial Real Estate Corporation undertakes no duty to update any forward-looking statements made herein. Projections and forward-looking statements are based on management’s good faith and reasonable assumptions, including the assumptions described herein.
Ares Commercial Real Estate Corporation
Carl Drake or Veronica Mayer