Ares Commercial Real Estate Prices $103M Common Stock Offering


Ares Commercial Real Estate Corporation (ACRE) announced the pricing of 6.5 million shares of its common stock for total gross proceeds of $102.8 million.

Ares Commercial Real Estate is a specialty finance company that originates and invests in commercial real estate loans and related investments.

The company gave the underwriters a 30-day option to purchase up to an additional 0.975 million shares of ACRE’s common stock. The offering comes after the stock spiked more than 47.6% over the past year.

Proceeds from the secondary offering will be used for general corporate purposes, including the repayment of debt and investments in mortgage loans and other assets in line with the company’s investment strategies and guidelines. (See ACRE stock chart on TipRanks)

The offering, expected to close on June 22, is subject to certain closing conditions.

JMP Securities analyst Steven Delaney recently maintained a Buy rating on the stock but increased the price target from $14 to $15.50 (3.4% upside potential).

Overall, the stock has a Strong Buy consensus rating based on 3 Buys and 1 Hold. The ACRE average analyst price target of $15 implies that shares are fully valued at current levels.

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