ACRES Commercial Realty (ACR) investor relations material

Executive summary

• Merger and internalization closed August 6, combining CRE principal investing, investment management and insurance under one platform.

• Strategic priorities include optimizing the balance sheet and growing investment management and insurance; the $2–$3 per-share run-rate EAD objective is illustrative, not guidance.

• Q3 GAAP net loss allocable to common shares was $56.3 million, or $5.16 per diluted share; EAD loss was $28.8 million, or $2.64 per diluted share.

Financial highlights

• Q3 revenue was $24.2 million and net interest income was $12.8 million, up from $21.0 million and $8.4 million, respectively, in Q3 2025.

• GAAP net loss allocable to common shares was $56.3 million versus net income of $9.8 million in Q3 2025; Q3 EAD loss was $28.8 million versus EAD income of $7.4 million.

• Book value per share was $16.81 at September 30, down from $26.76 at June 30; transaction-related and other items accounted for $8.62 per share of reductions.

• Merger and internalization charges totaled $38.3 million in Q3, including $13.7 million of non-cash charges; 9M charges were $43.4 million.

Outlook and guidance

• Run-rate EAD objective is $2–$3 per share, with progress and key drivers to be updated quarterly; no specific metric guidance was provided.

• Balance-sheet priorities include reducing leverage and investment risk, increasing liquidity, and optimizing net interest margin and return on equity; the stated NIM objective is 10–12%.

• Future EAD growth drivers include third-party capital raising, origination fees, insurance revenue and internalization savings; stabilized expense cost base was estimated at $29–$32 million.

• Chicago multifamily REO is expected to reach market occupancy by Q3 2027, with exit strategies to be assessed upon stabilization.