Ares Commercial Real Estate Corporation Announces Tax Reporting Information for Calendar Year 2020

Rhea-AI Summary

Ares Commercial Real Estate Corporation (NYSE: ACRE) has announced the tax treatment for its common stock distributions for 2020. The total distribution per share for the year is $1.3200, with notable individual distributions of $0.3300 per share occurring quarterly. The company has indicated that all distributions are taxable under Section 857(b)(9) of the Internal Revenue Code. Shareholders are advised to consult their tax advisors regarding the specific tax implications of these distributions.

Positive

• Total distribution of $1.3200 per share indicates consistent dividend payments.
• Quarterly distribution of $0.3300 per share demonstrates financial stability.

Negative

• None.

Ares Commercial Real Estate Corporation (NYSE: ACRE) (the “Company”) today announced the 2020 tax treatment for the Company’s common stock distributions (CUSIP # 04013V-10-8).

Form 1099
Reference:						(Box 1a+2a)			Box 1a		Box 1b		Box 2a		Box 2b		Box 5
Record Date		Payment Date		Cash Distribution Per Share		Distribution Allocable to 2020			Taxable Ordinary Dividends		Taxable Qualified Dividends(1)		Total Capital Gain Distribution		Unrecaptured Section 1250 Gain(2)		Section 199A Dividends(1)
12/30/2019		1/15/2020		$0.3300		$0.0000	(3)		$0.0000		$0.0000		$0.0000		$0.0000		$0.0000
3/31/2020		4/15/2020		$0.3300		$0.3300			$0.3300		$0.0036		$0.0000		$0.0000		$0.3264
6/30/2020		7/15/2020		$0.3300		$0.3300			$0.3300		$0.0036		$0.0000		$0.0000		$0.3264
9/30/2020		10/15/2020		$0.3300		$0.3300			$0.3300		$0.0036		$0.0000		$0.0000		$0.3264
12/30/2020		1/15/2021		$0.3300		$0.3300	(4)		$0.3300		$0.0036		$0.0000		$0.0000		$0.3264
		Totals				$1.3200			$1.3200		$0.0144		$0.0000		$0.0000		$1.3056

(1)		Boxes 1b and 5 are subsets of, and included in, Box 1a
(2)		Box 2b is a subset of, and included in, Box 2a
(3)		The entire distribution of $0.3300 per share was treated as taxable in 2019 pursuant to Section 857(b)(9) of the Internal Revenue Code
(4)		The entire distribution of $0.3300 per share is treated as taxable in 2020 pursuant to Section 857(b)(9) of the Internal Revenue Code

The amounts indicated above are not classified as excess inclusion income. Stockholders are encouraged to consult with their own tax advisors as to their specific tax treatment of the Company’s distributions.

About Ares Commercial Real Estate Corporation

Ares Commercial Real Estate Corporation is a specialty finance company primarily engaged in originating and investing in commercial real estate loans and related investments. Through its national direct origination platform, the Company provides a broad offering of flexible and reliable financing solutions for commercial real estate owners and operators. The Company originates senior mortgage loans, as well as subordinate financings, mezzanine debt and preferred equity, with an emphasis on providing value added financing on a variety of properties located in liquid markets across the United States. Ares Commercial Real Estate Corporation elected and qualified to be taxed as a real estate investment trust and is externally managed by a subsidiary of Ares Management Corporation. For more information, please visit www.arescre.com. The contents of such website are not, and should not be deemed to be, incorporated by reference herein.

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which relate to future events or the Company’s future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, those described from time to time in the Company’s filings with the Securities and Exchange Commission. Ares Commercial Real Estate Corporation undertakes no duty to update any forward-looking statements made herein.

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FAQ

What is the tax treatment for ACRE's 2020 stock distributions?

Ares Commercial Real Estate Corporation's total distribution for 2020 is $1.3200 per share, fully taxable under Section 857(b)(9) of the Internal Revenue Code.

When will ACRE's stock distributions be paid?

ACRE's distributions for 2020 were paid quarterly, with payment dates following record dates of 12/30/2019, 3/31/2020, 6/30/2020, 9/30/2020, and 12/30/2020.

How much is the quarterly distribution amount for 2020?

The quarterly distribution amount for ACRE in 2020 is $0.3300 per share.

What should ACRE shareholders do regarding taxes on their distributions?

Shareholders are encouraged to consult their tax advisors for specific tax treatment of ACRE's distributions.