Ares Commercial Real Estate Corporation Announces Tax Reporting Information for Calendar Year 2021

Rhea-AI Summary

Ares Commercial Real Estate Corporation (NYSE: ACRE) announced the tax treatment for its 2021 common stock distributions. The record date for the cash distribution of $0.3500 per share is set for December 31, 2021, with a payment date of January 19, 2022. Total distributions for the year amount to $1.4000, with $1.3492 allocable as capital gain. Notably, the entire distribution for 2021 is treated as taxable income. Shareholders are advised to consult tax advisors for individual tax treatment guidance.

Positive

• Total cash distribution for 2021 is $1.4000 per share.
• The entire 2021 distribution is treated as taxable income, providing clarity for investors.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- Ares Commercial Real Estate Corporation (NYSE: ACRE) (the “Company”) today announced the 2021 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 2021	Taxable Ordinary Dividends	Taxable Qualified Dividends(1)	Total Capital Gain Distribution	Unrecaptured Section 1250 Gain(2)	Section 199A Dividends(1)
12/30/2020	1/15/2021	$0.3300	$0.0000(3)	$0.0000	$0.0000	$0.0000	$0.0000	$0.0000
3/31/2021	4/15/2021	$0.3500	$0.3500	$0.3500	$0.0127	$0.0000	$0.0000	$0.3373
6/30/2021	7/15/2021	$0.3500	$0.3500	$0.3500	$0.0127	$0.0000	$0.0000	$0.3373
9/30/2021	10/15/2021	$0.3500	$0.3500	$0.3500	$0.0127	$0.0000	$0.0000	$0.3373
12/31/2021	1/19/2022	$0.3500	$0.3500(4)	$0.3500	$0.0127	$0.0000	$0.0000	$0.3373
	Totals		$1.4000	$1.4000	$0.0508	$0.0000	$0.0000	$1.3492

(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 2020 pursuant to Section 857(b)(9) of the Internal Revenue Code
(4)	The entire distribution of $0.3500 per share is treated as taxable in 2021 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220128005508/en/

Investor Relations:

Ares Commercial Real Estate Corporation

Carl Drake or Veronica Mendiola Mayer

888-818-5298

iracre@aresmgmt.com

Source: Ares Commercial Real Estate Corporation

FAQ

What is the cash distribution per share for ACRE in 2021?

The cash distribution per share for ACRE in 2021 is $0.3500.

When is the payment date for Ares Commercial Real Estate's 2021 distributions?

The payment date for the 2021 distributions is January 19, 2022.

What is the total distribution amount for ACRE in 2021?

The total distribution amount for ACRE in 2021 is $1.4000 per share.

How should shareholders approach the tax treatment of ACRE's distributions?

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