Business Context and Reporting Period
This Form 8-K is a current report filed by Ares Commercial Real Estate Corp (ACRE) on May 3, 2022. The filing addresses an inadvertent error discovered in the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2022, which was originally filed on the same date.
Key Financial Metrics
The filing does not provide updated revenue, profit, cash flow, margin, debt, or liquidity figures. It solely corrects the risk classification of the carrying values of loans held for investment as of March 31, 2022. The corrected total carrying value of loans held for investment (excluding the CECL Reserve) is $2,421,772,000.
| Risk Rating | Total Carrying Value ($ in thousands) |
|---|---|
| 1 | 90,386 |
| 2 | 738,129 |
| 3 | 1,430,592 |
| 4 | 162,665 |
| 5 | 0 |
| Total | 2,421,772 |
Material Changes Versus Prior Period
The filing does not report material changes in financial performance compared to prior periods. The only change is the correction of data presentation in Note 4 (Current Expected Credit Losses) of the previously filed Form 10-Q. The Company states that except for this correction, there are no changes to the Form 10-Q.
Guidance, Outlook, and Risks
The filing contains no new guidance, outlook, or management commentary regarding future performance. The primary risk addressed is the accuracy of the previously reported loan risk classification data. The error was identified as inadvertent and has been rectified in this report.
Important Facts for Investor Verification
- Verify the corrected loan risk rating table in the Form 10-Q for the quarter ended March 31, 2022, specifically Note 4.
- Confirm that the total carrying value of loans held for investment (excluding CECL Reserve) is $2,421,772,000 as of March 31, 2022.
- Note that no other financial statements or disclosures in the original Form 10-Q were affected by this error.