10 Worst Performing REITs in 2024

6. Ares Commercial Real Estate Corporation (NYSE:ACRE)

Year-to-Date Decline: 33.69%  

Number of Hedge Fund Holders: 8

Ares Commercial Real Estate Corporation (NYSE:ACRE) is a REIT that primarily engages in originating and investing in commercial real estate loans and related investments. It provides flexible and reliable financing solutions for commercial real estate owners and operators through its national direct origination platform.

ACRE has a lot to offer through its scaled national direct origination platform, quality diversified portfolio, longstanding and extensive credit capabilities, and attractive dividend yield opportunity. Additionally, the REIT is being managed by a subsidiary of Ares Management Corporation, a global alternative investment manager that operates an integrated platform across five business groups. It serves as a leader in leveraged finance, private credit, and secondaries and has over 20 years of track record of attractive risk-adjusted returns through market cycles.

For the second quarter of 2024, Ares Commercial Real Estate Corporation (NYSE:ACRE) reported a GAAP net loss of $6.1 million. While the financial results got impacted amidst the REIT tried resolving risk rated 4 and 5 loans and maintaining financial flexibility, it is confident that such actions will lead to higher levels of portfolio growth and earnings in the future. The firm also announced the appointments of Tae-Sik Yoon to Chief Operating Officer and Jeff Gonzales to Chief Financial Officer and Treasurer.

The REIT had total originated commitments of $2.2 billion across 42 loans, as of June 30. Other than boasting a well-diversified portfolio across geographies and asset classes, Ares Commercial Real Estate Corporation (NYSE:ACRE) benefits from the broad Ares firm.