By Josh Beckerman
Ares Commercial Real Estate shares were lower after the company reduced its dividend to 15 cents a share from 25 cents.
The stock declined 12% to $5.34 Wednesday and is down about 9% this year.
Based on Tuesday's closing price, the new payout provides a yield of about 9.85%.
Ares, which originates and invests in commercial real estate loans, said it cut its dividend as 2025 earnings are expected to reflect its more flexible balance sheet position.
The company also reported a fourth-quarter loss of 20 cents a share on revenue of $17.5 million.
Ares said it made significant progress in 2024 resolving risk rated 4 and 5 loans. Since year-end 2024, it has collected $166 million of additional repayments, improving its liquidity position and available capital to more than $200 million, up 66% since the end of the third quarter.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
February 12, 2025 14:18 ET (19:18 GMT)
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