Ares Commercial Real Estate (ACRE) investor relations material

Executive summary

• GAAP net income for Q2 2026 was $4.4 million ($0.08 per diluted share), with distributable earnings of $6.9 million ($0.12 per diluted share), reversing a prior loss and reflecting improved profitability.

• Portfolio repositioning continued, reducing risk-rated four and five loans and office exposure, while deploying over $900 million in new loan commitments in the past 12 months.

• Portfolio is now larger, more diversified, and increasingly comprised of newer investments originated in the current lending environment.

• Declared a $0.15 per share dividend for Q3 2026, annualized yield of approximately 14%.

• Book value per share at June 30, 2026 was $8.82, with total equity of $489 million.

Financial highlights

• Total revenue for Q2 2026 was $14.4 million, with net interest margin of $8.6 million.

• Loans held for investment reached $1.8 billion as of June 30, 2026, up $129 million quarter-over-quarter and $484 million year-over-year.

• Net debt-to-equity ratio (excluding CECL) was 2.0x; including CECL reserve, 2.5x.

• CECL reserve increased to $139 million (8% of total outstanding principal), with nearly half attributed to a risk-rated five Chicago office loan.

• Expenses for Q2 2026 were $9.0 million, down from $10.8 million in Q2 2025.

Outlook and guidance

• Management expects repayments and asset resolutions to continue advancing portfolio repositioning and support future growth.

• Over $100 million in available capital supports ongoing business priorities and investment objectives.

• Targeting a return to historical ROE of 9%-10% as remaining risk-rated loans are resolved.