Ares Commercial Real Estate: Strong Dividend Coverage And Floating Rate Loans

REITer's Digest
3.98K Followers

Summary

  • Ares Commercial Real Estate Corporation is a commercial mortgage REIT with a $2.4 billion portfolio of secured loans.
  • Accelerating inflation and rising interest rates stand to benefit ACRE.
  • We outline some key strengths that could power strong performance from ACRE.

Looking directly up at the skyline of the financial district

CHUNYIP WONG/E+ via Getty Images

Ares Commercial Real Estate Corporation (NYSE:ACRE) is a large commercial mREIT with an attractive valuation and a capable management team. Rising interest rates and sustained inflation should power returns from ACRE.

Introduction

Ares Commercial

This article was written by

3.98K Followers
REITer's Digest

Analyst’s Disclosure:I/we have a beneficial long position in the shares of VNQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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