Ares Management Corporation Reports First Quarter 2024 Results

Rhea-AI Summary

Ares Management (NYSE:ARES) reported strong financial results for the first quarter ended March 31, 2024. The GAAP net income was $73.0 million, with a per share income of $0.33. Fee related earnings were $301.7 million, showing significant growth in assets under management and fundraising. The company declared a quarterly dividend of $0.93 per share. Ares has a Dividend Reinvestment Program for its Class A common stockholders. An earnings presentation and conference call are scheduled to discuss the results.

Positive

• Strong financial results with GAAP net income of $73.0 million.

• Fee related earnings of $301.7 million, indicating growth in assets under management and fundraising.

• Declared quarterly dividend of $0.93 per share for Class A common stockholders.

• Offering a Dividend Reinvestment Program for Class A common stockholders.

Negative

• None.

Insights

Financial Analyst

Ares Management Corporation's report suggests a healthy financial state with GAAP net income at $73.0 million and after-tax realized income at $265.1 million. The per-share income figures underscore operational efficiency which can be attractive to investors. The substantial 19% growth in assets under management (AUM) and the robust fundraising activity exceeding $17 billion reflect a strong market presence and an aggressive growth strategy. The dividend declaration of $0.93 per share may appeal to income-focused investors and could potentially stabilize the stock price. Nonetheless, investors should gauge the sustainability of these dividends in conjunction with the company's payout ratio and debt levels. An increase in AUM not yet paying fees by 28% hints at future revenue, but also necessitates scrutiny into the quality of these assets and their expected return on investment.

Market Research Analyst

Ares Management's large reserve of available capital, nearly $115 billion, positioned alongside the increase in AUM positions the firm to capitalize on market opportunities as they arise. This strategic reserve allows Ares to navigate market volatility and make opportunistic investments. However, investors should be mindful of the broader economic environment as it could affect transaction activity levels and thus impact Ares' ability to deploy capital effectively. The claim of significant capacity for growth aligned with a return to higher levels of transaction activity underscores a confident outlook but also hints at potential dependency on favorable market conditions for growth acceleration.

Risk Analyst

The financial results indicate a solid quarter for Ares Management, but a comprehensive risk assessment is necessary. Investors should consider the risks associated with the current economic climate, including interest rate changes, which could affect investment yields and asset valuations. The company's performance is intrinsically tied to market conditions and the impending economic forecasts should be factored into an investor's risk tolerance. The Dividend Reinvestment Program may signal strength, but it can also be perceived as a mechanism to keep share price levels stable by encouraging reinvestment rather than cash payouts, which could be a red flag if the company's cash flow is not robust enough to support such dividends in the long term.

NEW YORK--(BUSINESS WIRE)-- Ares Management Corporation (NYSE:ARES) today reported its financial results for its first quarter ended March 31, 2024.

GAAP net income attributable to Ares Management Corporation was $73.0 million for the quarter ended March 31, 2024. On a basic and diluted basis, net income attributable to Ares Management Corporation per share of Class A and non-voting common stock was $0.33 for the quarter ended March 31, 2024.

After-tax realized income was $265.1 million for the quarter ended March 31, 2024. After-tax realized income per share of Class A common stock was $0.80 for the quarter ended March 31, 2024. Fee related earnings were $301.7 million for the quarter ended March 31, 2024.

“During the first quarter, we continued to see strong year-over-year growth across our key financial metrics, including 19% growth in our assets under management, robust fundraising of more than $17 billion, higher deployment and attractive investment performance,” said Michael Arougheti, Chief Executive Officer and President of Ares. “Our portfolios continue to perform well and we are finding compelling investment opportunities across many segments of our expanding global platform.”

“With a record amount of available capital at nearly $115 billion along with 28% growth in our AUM not yet paying fees, we believe we have significant capacity for growth when there is a return to higher levels of transaction activity,” said Jarrod Phillips, Chief Financial Officer of Ares.

Common Stock Dividend

Ares declared a quarterly dividend of $0.93 per share of its Class A and non-voting common stock, payable on June 28, 2024 to its Class A and non-voting common stockholders of record at the close of business on June 14, 2024.

Dividend Reinvestment Program

Ares has a Dividend Reinvestment Program for its Class A common stockholders that will be effective for the quarterly dividend on June 28, 2024. Equiniti Trust Company is engaged to administer the plan on behalf of Ares. Additional information can be located on the Investor Resources section of our website.

Additional Information

Ares issued a full detailed presentation of its first quarter 2024 results, which can be viewed at www.aresmgmt.com on the Investor Resources section of our home page under Events and Presentations. The presentation is titled “First Quarter 2024 Earnings Presentation.”

Conference Call and Webcast Information

Ares will host a conference call on May 2, 2024 at 11:00 a.m. (Eastern Time) to discuss first quarter results. All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of our website at http://www.aresmgmt.com. Please visit the website to test your connection before the webcast. Domestic callers can access the conference call by dialing +1 (800) 245-3047. International callers can access the conference call by dialing +1 (203) 518-9783. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected and to reference the conference ID ARESQ124. For interested parties, an archived replay of the call will be available through June 2, 2024 to domestic callers by dialing +1 (800) 839-5631 and to international callers by dialing +1 (402) 220-2558. An archived replay will also be available through June 2, 2024 on a webcast link located on the Home page of the Investor Resources section of our website.

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2024, Ares Management Corporation's global platform had approximately $428 billion of assets under management with approximately 2,900 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.

Forward-Looking Statements

Statements included herein contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which reflect our current views with respect to, among other things, future events, operations and financial performance. You can identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “foresees” or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity. Actual results may vary materially from those indicated in these forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. Ares Management Corporation does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Nothing in this press release constitutes an offer to sell or solicitation of an offer to buy any securities of Ares or an investment fund managed by Ares or its affiliates.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240501327887/en/

Investor Relations

Carl Drake

cdrake@aresmgmt.com

(800) 340-6597

Greg Mason

gmason@aresmgmt.com

(800) 340-6597

Cameron Rudd

crudd@aresmgmt.com

(800) 340-6597

Source: Ares Management Corporation

FAQ

<p>What was the GAAP net income for Ares Management in the first quarter of 2024?</p>

The GAAP net income for Ares Management in the first quarter of 2024 was $73.0 million.

<p>How much was the quarterly dividend declared by Ares Management for its Class A and non-voting common stockholders?</p>

Ares Management declared a quarterly dividend of $0.93 per share for its Class A and non-voting common stockholders.

<p>Is there a Dividend Reinvestment Program offered by Ares Management for its Class A common stockholders?</p>

Yes, Ares Management has a Dividend Reinvestment Program for its Class A common stockholders, effective for the quarterly dividend on June 28, 2024.

<p>When is the conference call scheduled by Ares Management to discuss the first quarter results?</p>

The conference call is scheduled on May 2, 2024, at 11:00 a.m. (Eastern Time).