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Ares Commercial Real Estate (FRA:41I) 5-Year Yield-on-Cost % : 20.65 (As of May. 23, 2024)


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What is Ares Commercial Real Estate 5-Year Yield-on-Cost %?

Ares Commercial Real Estate's yield on cost for the quarter that ended in Mar. 2024 was 20.65.


The historical rank and industry rank for Ares Commercial Real Estate's 5-Year Yield-on-Cost % or its related term are showing as below:

FRA:41I' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 4.26   Med: 9.46   Max: 35.29
Current: 20.65


During the past 13 years, Ares Commercial Real Estate's highest Yield on Cost was 35.29. The lowest was 4.26. And the median was 9.46.


FRA:41I's 5-Year Yield-on-Cost % is ranked better than
97.27% of 842 companies
in the REITs industry
Industry Median: 6.895 vs FRA:41I: 20.65

Competitive Comparison of Ares Commercial Real Estate's 5-Year Yield-on-Cost %

For the REIT - Mortgage subindustry, Ares Commercial Real Estate's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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's 5-Year Yield-on-Cost % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Ares Commercial Real Estate's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Ares Commercial Real Estate's 5-Year Yield-on-Cost % falls into.



Ares Commercial Real Estate 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of Ares Commercial Real Estate is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5

Ares Commercial Real Estate  (FRA:41I) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


Ares Commercial Real Estate 5-Year Yield-on-Cost % Related Terms

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Ares Commercial Real Estate (FRA:41I) Business Description

Traded in Other Exchanges
Address
245 Park Avenue, 42nd Floor, New York, NY, USA, 10167
Ares Commercial Real Estate Corp is a specialty finance company and a Real Estate Investment Trust providing commercial real estate loans and related investments. The company operates in one segment namely originating and managing a diversified portfolio of CRE debt-related investments. The group recognizes its revenues through the interest income it receives from loans.

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