The company's CEO also outlined its approach to the current market
Ares Commercial Real Estate has revealed a $0.6 million net income for the third quarter of 2022, the CRE finance company announced Wednesday.
In a release, Ares said its Q3 2022 net income attributable to common stockholders was $644,000 or $0.1 per diluted common share. That's down from $9.95 million in Q3 2021. The company's distributable earnings were $21.3 million or $0.39 per share, and its total revenue remained relatively unchanged at approximately $27.2 million.
Lifting the lid on the third quarter figures, Ares Commercial CEO Bryan Donohoe said the "strong earnings" during the quarter were "driven by benefits of higher interest rates" in the firm's floating rate portfolio.
"We are approaching the current market by continuing to directly originate senior loans backed by high-quality commercial properties as well as opportunistically acquiring investment grade commercial real estate securities, in both cases at wider, attractive credit spreads," Donohoe said.
"We believe our strong position of $156 million of available liquidity and no credit spread-based mark-to-market sources of financing positions us well to navigate today's market," added Tae-Sik Yoon, chief financial officer of Ares Commercial Real Estate Corporation.
Ares primarily originates and invests in commercial real estate loans and related investments. Through its national direct origination platform, the company offers several CRE financing options and originates senior mortgage loans, subordinate financings, mezzanine debt, and preferred equity.