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res Commercial Real Estate Corporation (ACRE) has reported a GAAP net loss of $10.7 million, or $0.20 per diluted common share, and Distributable Earnings (Loss) of $8.3 million, or $0.15 per diluted common share for the fourth quarter of 2024. For the full year 2024, ACRE reported a GAAP net loss of $35.0 million, or $0.64 per diluted common share, and Distributable Earnings (Loss) of $44.6 million, or $0.82 per diluted common share.
CEO Bryan Donohoe attributed the progress in resolving risk-rated 4 and 5 loans to the company's broader real estate platform, higher liquidity levels, and lower financial leverage. He emphasized that ACRE remains focused on addressing underperforming loans and REOs in 2025, with a reduced quarterly dividend of $0.15 per share due to expected earnings impacts from its more flexible balance sheet position.
CFO Jeff Gonzales highlighted the acceleration of loan repayments since year-end 2024, which has bolstered liquidity and available capital by over $200 million, an increase of 66% since the third quarter. This added flexibility is expected to enable ACRE to address underperforming loans more quickly and effectively.
ACRE's Board of Directors declared a regular cash dividend of $0.15 per common share for the first quarter of 2025, payable on April 15, 2025, to common stockholders of record as of March 31, 2025.
The company has made significant progress in resolving risk-rated loans, with a 34% year-over-year decline in such loans. ACRE's liquidity position has improved substantially, with over $200 million available for investment and loan repayment. The company remains focused on addressing underperforming loans and REOs, with a reduced quarterly dividend to reflect its expected earnings impacts.
ACRE's financial performance is influenced by various factors, including global economic trends, interest rates, credit spreads, and the market value of its investments. The company's business strategy, investment approach, and ability to locate suitable investments are also critical drivers of its results.
As of December 31, 2024, ACRE's consolidated balance sheet showed total assets of $1.75 billion, with cash and cash equivalents of $63.8 million, loans held for investment of $1.66 billion, and a current expected credit loss reserve of $136.2 million. The company's liabilities totaled $1.21 billion, with secured funding agreements, notes payable, and collateralized loan obligation securitization debt being the primary components.
ACRE's consolidated statements of operations for the three months and year ended December 31, 2024, showed revenue from interest income of $33.5 million and $157.7 million, respectively, with net interest margin of $11.2 million and $51.7 million, respectively. The company reported a net loss attributable to common stockholders of $10.7 million for the fourth quarter and $35.0 million for the full year 2024.
Distributable Earnings (Loss) is a non-GAAP financial measure that helps ACRE evaluate its financial performance excluding certain transactions and GAAP adjustments. The company believes this metric provides useful information to investors regarding its ability to pay dividends, which is a key reason investors invest in ACRE.
