Question · Q4 2025
Ajene Oden, on behalf of Rick Shane, asked about Ares Commercial Real Estate's target for reducing office exposure by the end of 2026, noting significant progress since 2023.
Answer
CEO Bryan Donohoe reiterated the company's primary focus on resolving risk-rated 4 and 5 loans, particularly the material Chicago office asset. He acknowledged that the timeline for resolution is partially outside their control as a creditor but expressed hope for more natural resolutions in the market, referencing a normalized repayment cadence of one-third per annum, though office asset duration has extended.
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