John Nikodemus's questions to Ares Commercial Real Estate Corp (ACRE) leadership • Q4 2024
Question
John Nikodemus of BTIG asked for the outlook on ACRE's repayment trajectory for the remainder of 2025, given the high volume seen in Q4 2024 and early Q1 2025.
Answer
CEO Bryan Donohoe explained that while recent market dynamics extended loan durations, there is now 'potential energy' that could lead to an acceleration of repayments. He suggested that as more capital enters the space, ACRE could see an 'unnatural acceleration' of repayments in 2025, moving the portfolio back toward a more normalized three-year weighted average life for its investments.