Ares Reports $116 Million in Available Capital

Ares Commercial Real Estate plans to resolve about $160 million in nonaccrual loans and redeploy the proceeds into income-producing investments.

Updated on Nov. 8, 2026 in Commercial

Photograph of a plain mid-rise brick and glass commercial office building under flat overcast daylight, with a bare concrete loading apron in the foreground. — Ares Commercial Real Estate plans to resolve about $160 million in nonaccrual loans and redeploy the proceeds, after reporting $116 million in available capital this quarter. AI Illustration. Upload story photo >

Ares Commercial Real Estate Corporation, which trades on the NYSE under the ticker ACRE, reported $116 million in available capital. The company holds about $160 million in net nonaccrual carrying value that it plans to resolve.

Why it matters

Resolving nonaccrual loans and redeploying capital into income-producing investments could support earnings per share and help bring earnings to a level that meets or exceeds the company's dividend. The concentration of problem loans in Chicago and Brooklyn shows how commercial real estate stress can be concentrated in a small number of assets.

Ares sold one of its two real estate-owned properties and received full repayment on its only loan in default across the third quarter and the fourth quarter to date. The Chicago exposure accounted for close to half of Ares' CECL reserve, and the Brooklyn loan losses will be recognized as individual condo units sell.

The players

Ares Commercial Real Estate Corporation (NYSE: ACRE)

A commercial real estate finance company that originates and holds loans secured by commercial properties, and a publicly traded real estate investment trust managed by an affiliate of Ares Management.

The details

Ares said the Chicago office property loan accounted for close to half of its CECL reserve, while losses on the Brooklyn residential condo loan will be recognized as individual units sell. Across the third quarter and the fourth quarter to date, the company sold one of its two real estate-owned properties and received full repayment on its only loan in default.

Third quarter 2026: Ares sold one real estate-owned property and received loan repayment.
Fourth quarter 2026 to date: Ares sold another real estate-owned property and received loan repayment.

Season Trajectory

Ares' reserve for expected credit losses under the CECL framework is concentrated in a single Chicago office loan, which accounted for close to half of the total reserve. This concentration shows how commercial real estate credit stress can cluster in a small number of large assets.

Shareholders in Ares Commercial Real Estate may see changes to dividend coverage if the company redeploys capital from resolved nonaccrual assets into income-producing investments. Investors should watch whether the company meets its target for earnings to match or exceed the dividend.

The takeaway

Commercial real estate lenders with concentrated exposure to a few distressed properties can see large reserve charges from one or two loans. Investors should check how much of a lender's reserve is tied to a single asset when assessing its earnings outlook.