Is Ares Commercial Real Estate Corp (ACRE) Halal?

NYSE Real Estate United States $264M
✗ NOT HALAL
Confidence: 90/100
Ares Commercial Real Estate Corp (ACRE) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 368.8% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Ares Commercial Real Estate Corp operates in the Real Estate sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 368.8%
/ 30%
10.3%
/ 30%
0.0%
/ 30%
425.28%
/ 5%
✗ NOT HALAL
DJIM 368.8%
/ 33%
10.3%
/ 33%
0.0%
/ 33%
425.28%
/ 5%
✗ NOT HALAL
MSCI 64.7%
/ 33%
1.8%
/ 33%
0.0%
/ 33%
425.28%
/ 5%
✗ NOT HALAL
S&P 368.8%
/ 33%
10.3%
/ 33%
0.0%
/ 33%
425.28%
/ 5%
✗ NOT HALAL
FTSE 64.7%
/ 33%
1.8%
/ 33%
0.0%
/ 50%
425.28%
/ 5%
✗ NOT HALAL

Financial Highlights

EPS
$-0.02
Dividend Yield
1261.0%
Payout: 2266.7%
P/B Ratio
0.5
Revenue
$23M
Growth: -81.7%
Beta
1.3
High volatility
Current Ratio
2.5

Profitability

Gross Margin 100.0%
Operating Margin -195.8%
Net Margin -1.2%
Return on Equity (ROE) -0.2%
Return on Assets (ROA) -0.1%

Cash Flow & Balance Sheet

Operating Cash Flow$21M
Free Cash Flow$20M
Total Debt$1.0B
Debt-to-Equity205.6
Current Ratio2.5
Total Assets$1.6B

Price & Trading

Last Close$4.87
50-Day MA$5.05
200-Day MA$4.84
Avg Volume557K
Beta1.3
52-Week Range
$3.35
$5.89

About Ares Commercial Real Estate Corp (ACRE)

CEO
Mr. Bryan Patrick Donohoe
Sector
Real Estate
Industry
REIT - Mortgage
Country
United States
Exchange
NYSE
Market Cap
$264M
Currency
USD

Ares Commercial Real Estate Corporation, a specialty finance company, engages in the originating and investing in commercial real estate (CRE) loans and related investments in the United States. The company provides loan opportunities for the owners, operators, and sponsors of CRE properties. Its investments includes senior mortgage loans, subordinate debt, preferred equity products, mezzanine loans, and other CRE investments, such as commercial mortgage-backed securities. It has elected and qualified to be taxed as a real estate investment trust for the United States federal income tax purposes under the Internal Revenue Code of 1986. Ares Commercial Real Estate Corporation was incorporated in 2011 and is based in New York, New York.

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Frequently Asked Questions

Is Ares Commercial Real Estate Corp (ACRE) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Ares Commercial Real Estate Corp is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Ares Commercial Real Estate Corp's debt ratio?

Ares Commercial Real Estate Corp's debt ratio is 368.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 64.7%.

What are Ares Commercial Real Estate Corp's key financial metrics?

Ares Commercial Real Estate Corp has a market capitalization of $264M, and revenue of $23M. The company maintains a gross margin of 100.0% and a net margin of -1.2%. Return on equity stands at -0.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.