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A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Ares Commercial Real Estate's Debt-to-Equity or its related term are showing as below:
FRA:41I'
s Debt-to-Equity Range Over the Past 10 Years
Min: 1.56 Med: 2.49 Max: 3.29
Current: 2.58
During the past 13 years, the highest Debt-to-Equity Ratio of Ares Commercial Real Estate was 3.29. The lowest was 1.56. And the median was 2.49.
FRA:41I's Debt-to-Equity is ranked worse than 91.97% of 685
companies
in the REITs industry
Industry Median: 0.78
vs FRA:41I: 2.58
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Ares Commercial Real Estate Debt-to-Equity Related Terms
Ares Commercial Real Estate Debt-to-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:41I vs REFI, RC, MITT: Debt-to-Equity Comparison
For the REIT - Mortgage subindustry, Ares Commercial Real Estate's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ares Commercial Real Estate Debt-to-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Ares Commercial Real Estate's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Ares Commercial Real Estate's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ares Commercial Real Estate (FRA:41I) has a Debt-to-Equity of 2.58 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Ares Commercial Real Estate and its competitors. This is near median its historical median of 2.49. Over the past decade, Ares Commercial Real Estate's Debt-to-Equity has ranged from 1.56 to 3.29. According to the industry distribution chart, Ares Commercial Real Estate ranks #630 out of 685 companies in the REITs industry, placing it in the top 92%.
Is Ares Commercial Real Estate's Debt-to-Equity too high?
Ares Commercial Real Estate's current Debt-to-Equity of 2.58 is near median its 10-year median of 2.49. Over the past 10 years, this metric has ranged from a low of 1.56 to a high of 3.29. The REITs industry median Debt-to-Equity is 0.78. Ares Commercial Real Estate's value of 2.58 is 230.8% above this industry median. Based on the distribution chart, Ares Commercial Real Estate ranks #630 out of 685 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Ares Commercial Real Estate has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ares Commercial Real Estate's Debt-to-Equity compare to REFI and RC?
According to the REITs industry distribution chart, Ares Commercial Real Estate ranks #630 out of 685 companies for Debt-to-Equity. This places Ares Commercial Real Estate in the lower half of its industry. The industry median Debt-to-Equity is 0.78. Ares Commercial Real Estate's value of 2.58 is 230.8% above this benchmark. Historically, Ares Commercial Real Estate's own Debt-to-Equity has ranged from 1.56 to 3.29 over the past decade. While the company's 10-year median is 2.49 vs. the industry median of 0.78, Ares Commercial Real Estate has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a REITs company?
The median Debt-to-Equity among REITs companies is 0.78, based on 685 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ares Commercial Real Estate's current Debt-to-Equity of 2.58 is 230.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Ares Commercial Real Estate and its competitors. For the REITs industry, the median Debt-to-Equity is 0.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Commercial Real Estate's current Debt-to-Equity is 2.58, which is near median its own 10-year median of 2.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Commercial Real Estate stock overvalued right now?
Based on GuruFocus' analysis, Ares Commercial Real Estate (FRA:41I) is currently considered Possible Value Trap. The stock's GF Value™ is €9.98, compared to a current price of €4.06 — trading 59.3% below its estimated fair value. The current Debt-to-Equity is 2.58, which is near median its 10-year median of 2.49 and 230.8% above the REITs industry median of 0.78. Ares Commercial Real Estate's overall GF Score™ is 43/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Ares Commercial Real Estate (FRA:41I), the current Debt-to-Equity is 2.58 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ares Commercial Real Estate (FRA:41I) Overvalued in 2026?
Based on GuruFocus' analysis, Ares Commercial Real Estate stock appears to be undervalued.
The current stock price of €4.06 is trading 59.3% below its estimated GF Value™ of €9.98.
GuruFocus considers Ares Commercial Real Estate to be Possible Value Trap.
Key valuation signals for FRA:41I:
Debt-to-Equity: 2.58 (near median its 10-year median of 2.49)
GF Value™: €9.98 vs. price of €4.06 (59.3% below fair value)
Industry Position: 230.8% above the REITs median (#630 of 685)
No single metric tells the full story. See the FRA:41I stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ares Commercial Real Estate Corp is a specialty finance company and a real estate investment trust mainly engaged in originating and investing in commercial real estate (CRE) loans and related investments. It operates in one segment, namely originating and managing a diversified portfolio of CRE debt-related investments. The company recognizes the majority of its revenues in the form of interest income, which it receives from loans.
43GF Score
Get the complete analysis for FRA:41I
Debt-to-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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