![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000000_124e79bf322d816ed2bf1f1640b48b735e91c5399d6ef4e4e58177e6d454ac80.png) Logo ## SECOND QUARTER 2026 EARNINGS PRESENTATION July 29, 2026 ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000001_dc30b52062bfbb1c72668561f3cc62b193495d6141b641e2a24d8495ba6417f0.png) Photograph ## DISCLAIMER ## Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are not historical facts but rather are based on ACRES Commercial Realty Corp.'s ('ACR's' or the 'Company's') current beliefs, assumptions and expectations. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to ACR or are within its control. If a change occurs, its business, financial condition, liquidity and results of operations may vary materially from those expressed in the forward-looking statements. You should not place undue reliance on these forward-looking statements, which reflect ACR's view only as of the date of this presentation. ACR uses words such as 'anticipate,' 'expect,' 'intend,' 'plan,' 'believe,' 'seek,' 'estimate,' 'target,' and variations of these words and similar expressions to identify forward-looking statements. Forward-looking statements are subject to various risks and uncertainties that could cause actual results to vary from its forward-looking statements, including, but not limited to: - Changes in the industry, interest rates, the debt securities markets, real estate markets or the general economy; - Increased rates of default and/or decreased recovery rates on its investments; - The performance and financial condition of its borrowers; - ACR's ability to consummate the proposed internalization and acquisition of the ACRES Capital Corp. (the "Merger") and achieve the expected cost savings or other benefits therefrom; - If ACR fails to consummate the proposed Merger, the Company's dependence on ACRES Capital, LLC, (the 'Manager'), and the Company's ability to find a suitable replacement in a timely manner, or at all, if its Manager or ACR were to terminate the management agreement; - The cost and availability of its financings, which depend in part on its asset quality, the nature of its relationships with its lenders and other capital providers, its business prospects and outlook and general market conditions; - The availability and attractiveness of terms of additional debt repurchases; - Availability, terms and deployment of short-term and long-term capital; - Availability of, and ability to retain, qualified personnel; - Changes in its business strategy; - Availability of investment opportunities in commercial real estate-related and commercial finance assets; - The degree and nature of its competition; - The resolution of its non-performing and sub-performing assets; - The Company's ability to comply with financial covenants in its debt instruments; - The adequacy of its cash reserves and working capital; - The timing of cash flows, if any, from its investments; - Unanticipated increases in financial and other costs, including a rise in interest rates; - Its ability to maintain compliance with over-collateralization and interest coverage tests in certain financing arrangements; - Environmental and/or safety requirements; - Its ability to satisfy complex rules in order for ACR to qualify as a real estate investment trust ('REIT'), for federal income tax purposes and qualify for its exemption under the investment company act of 1940, as amended, and its ability and the ability of its subsidiaries to operate effectively within the limitations imposed by these rules; - Legislative and regulatory changes (including changes to laws governing the taxation of REITs or the exemptions from registration as an investment company); and - Other factors discussed under item IA. Risk factors in its annual report on form 10-K for the year ended December 31, 2025 and those factors that may be contained in any subsequent filing ACR makes with the Securities and Exchange Commission. ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000002_5a8085825dbd81d1dabd48b8e3b98987bc0cec858a9e2f48f667c868841ae1b5.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000003_dad02fba43f8812d3825b61c1df0178bbbbcab57627769ec70427e2d867ad4d4.png) Logo ## DISCLAIMER ## Forward-Looking Statements (continued) In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation might not occur and actual results, performance or achievement could differ materially from those anticipated or implied in the forward-looking statements. The Company undertakes no obligation, and specifically disclaims any obligation, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. ## Past Performance Past performance is not indicative of future results. There is no guarantee that any investment strategy referenced herein will work under all market conditions. Prior to making any investment decision, you should evaluate your ability to invest for the long-term, especially during periods of downturns in the market. You alone assume the responsibility of evaluating the merits and risks associated with any potential investment or investment strategy referenced herein. ## Notes on Presentation This presentation contains information regarding financial results that is calculated and presented on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States ('GAAP'), which management believes is relevant to assessing ACR's financial performance. Please refer to page 16 for the reconciliation of Net Income (Loss), a GAAP financial measure, to Earnings Available for Distribution ('EAD'), a non-GAAP financial measure. Unless otherwise indicated, information included in this presentation is at or for the period ended June 30, 2026. ## Definitions Refer to page 19 for a description of certain terms not otherwise defined or footnoted, including EAD, Benchmark Rate, Book Value, and other key terms. ## No Offer or Sale of Securities This presentation is for informational purposes only and does not constitute an offer to sell or the solicitation of any offer to buy any securities of ACR or any other entity. Any offering of securities would be made pursuant to separate documentation and any such securities would not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000004_5a8085825dbd81d1dabd48b8e3b98987bc0cec858a9e2f48f667c868841ae1b5.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000005_b6648eca9ff3ca763d5785fa1fd406c84d1d58b41b247be84782766cb315f69d.png) Icon ## HIGHLIGHTS ## Manager is focused on delivering shareholder value through EAD 1 growth Percentage of Multifamily-focused CRE in Loan Portfolio 81% Total Liquidity at June 30, 2026 $82.7M ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000006_8e69183dc95867e9a958be6a15f7f79a6102e7925359cacadf899bc313968bfc.png) Logo Per Share-Diluted GAAP Net Loss / EAD ($1.87) / ($0.74) 2Q26 Net CRE Loan Repayments $74.9M Transaction Costs / Accelerated Equity Comp. Expense Related to the Internalization $5.1M / $4.0M Book Value Per Share at June 30, 2026 2,3 $26.76 ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000007_93c127281f49e271391f70de8aff797df517e9eb8b5d6b54a1a02f08fbd6e549.png) Logo ## SECOND QUARTER 2026 RESULTS ## Financial Results ## ($1.87) GAAP net loss per share-diluted ($0.74) EAD 1 per share diluted $26.78 Book value per share ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000008_1273f3770ff478f28623997e7108562b6bb5b9c9c5226798eca25ecbf94fcc72.png) Logo ## Merger Transaction Items $5.1M Merger and internalization costs $4.0M Accelerated equity compensation expense of Manager's shares ## CRE Loan Activity & CRE Portfolio $2.1B Comprising 57 loans with a weighted average LTV of 77 % CRE loan portfolio at par value ## $74.9M of net loan repayments 14% of the par value of the CRE loan portfolio is rated 4 or 5 2 93.9% of the par value of the CRE loan portfolio is current on payments $104.6M of net investments in real estate and properties held for sale ## Capitalization, Liquidity & NOL $2.7B Total capacity at June 30, 2026 $954.8M Capacity available at June 30, 2026 $82.7M Total liquidity at June 30, 2026 $32.1M Net Operating Loss Carryforwards at June 30, 2026 ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000009_fad55402f10ac9b7d4eff3385bf49e489f29220929baecf62538d6b2c4b506bf.png) Logo ## BALANCE SHEET OVERVIEW | 2Q26 Balance Sheet Overview | | |---------------------------------------------------------------------|--------------------------| | Total Assets ($B) | $2.4 | | Total Liquidity ($M) | $82.7 | | CRE Whole Loans, at par ($B) | $2.1 | | WA Spread | 3.28% | | CECL Reserve - General ($M) | $21.1 | | Per BV Share 1 / Basis Points | $2.98/0.99% | | Investments in Real Estate and Properties Held for Sale, net 2 ($M) | $104.6 | | Number of Investments Total Borrowings, Leverage Ratio | 5 | | at cost ($B) | $1.8 | | | 3.2x | | Asset Specific Borrowings, at par ($B) | $1.6 | | WA Spread | 1.81% | | Corporate Debt, at par ($M) | $201.5 | | WA Coupon | 6.30% | | Preferred and Common Equity 3 ($M) | $224.0/$326.2 8.76% / NA | | Dividend %: WA Preferred / Common | | ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000010_b65fea45a407c6793f43446eafa4f5f72e64492728dc36cd79a8ce09dd60c6ee.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000011_1c5df414487ffc7d482416b17dddca293366f93988b94e99ffafa469d3991980.png) Bar chart ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000012_6ad5010eb7adec301179180d8dbc0c7c0e7a8a1dba59e67b26bd86d8b87c2edb.png) Pie chart 1 Per share adjustments are calculated based on the share count outstanding of 7,075,542 utilized in the calculation of book value at June 30, 2026 2 Investments in real estate and properties held for sale are shown net of related financings and real estate related lease obligations 3 Includes $136.9 million of non-controlling interests ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000013_01497889c616adbb3ca8c9f88f393d9ebdc57c5454edd3606f8879c24620cde7.png) Logo ## CRE LOAN PORTFOLIO OVERVIEW | CRE Loan Summary 1 | CRE Loan Summary 1 | |----------------------------------------------|----------------------| | Loans held for investment, at amortized cost | $2,128.9 | | CECL Reserves | ($21.1) | | CRE whole loans, floating-rate WA | 1M SOFR + 3.28% | | WA 1M SOFR Floor 2 | 2.22% | | WA CRE loan portfolio LTV | 77% | | Total number of CRE loans | 57 | | Average CRE loan size, at par | $37.5 | | WA Risk Rating, at par | 2.6 | ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000014_40eed28efa24234817b423806877d330c9302541e8d28ab0c36f86718158c79a.png) Bar chart ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000015_b65fea45a407c6793f43446eafa4f5f72e64492728dc36cd79a8ce09dd60c6ee.png) Logo 2 At June 30, 2026, all CRE whole loans are indexed to SOFR and the WA benchmark rate was 3.64% ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000016_18321eb80308f9d2f409b12b8704604482303b0fb060f20b1fff71454740d1ac.png) Geographical map ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000017_93724c63a3a2ad861bf3b7c1558b263509900016c85037a8b237b1912dcaa3e8.png) Pie chart ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000018_0826b983d82eb763dff113a593ea87bf221b568f8bfb2bb029d2df3cc14176f2.png) Logo ## CRE LOAN PORTFOLIO MATURITY PROFILE ## 3.1 years Fully extended weighted average loan maturity 1,2 74% of the par value of the portfolio has interest rate caps or debt service reserves in place at June 30, 2026 3,4,5 ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000019_d6b4bd8e72599adf7a77bfb4ae6717ed5928fadcee05b82359447b49fe6a89a6.png) Bar chart ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000020_89bd0ed437708643e91da0fff098cfb082eb32c989b1674de1af0b1f5770871f.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000021_2b0a3f2bb82ce0a9a7a07b6880f3ee8f36eb62d0e57ed0c77257f7d36d286a96.png) Logo ## CRE LOAN RISK RATINGS AND CECL RESERVES 86% 52 of ACR's 57 loans, or 94%, are current on contractual payments at June 30, 2026 of ACR's loans have a risk rating of 1, 2 or 3 that are performing in line with or near underwritten expectations 1,2 ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000022_ff26e90a1421aaa98c1b75f0ac901f9450b5223e5dbbec59149446f5665894b5.png) Bar chart ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000023_0a980a0fe92676b4fa44acf8be74697396434861e8421a01822c2d3d2bbe66de.png) Bar chart ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000024_b1e2b95cfe5ecedd57a739324f9fd5646dda6da78ccbe379a929b01479cd08b8.png) Bar chart ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000025_0701da560fce379d0fd587a965029ba3223d89cc67b5e43db929c819cddfb0ca.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000026_59d80057b59ae41773f8130a18784c1baf4eb7f264c147428353695a107c008b.png) Logo ## INVESTMENTS IN REAL ESTATE PROPERTIES ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000027_8856eb09eea8e30dec09112ad327c14e323401bbf53b151287be8a5d0bcc4736.png) Icon ## $104.6 million of net investments in real estate and properties held for sale 1,2 ## Select Investment Highlights ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000028_4c748486c1c71dd7b36bf6d44a7d7c30d7c1e76d144e2dd64ac5307c2620b533.png) Photograph ## Hotel $39.8M 3 - 279-key hotel next to a convention center - Equity via lending activities in the northeast region - Acquired the deed in November 2020 - Reclassified to held for sale as of September 30, 2022 ## Real Estate Investment Results Realized Land Sale 1Q26 | Land Sale 1Q26 Real Estate Development Executed Transactions | Transaction Period | EAD Gain | EAD Basis (Equity) | MOIC (4) | |----------------------------------------------------------------|----------------------|------------|----------------------|------------| | Office in northeast region | 4Q24 | $5.3 | $14.9 | 1.35x | | Student housing development in southeast region | 3Q25 | $9.5 | $22.7 | 1.42x | | Development of land in the northeast region | 1Q26 | $3.3 | $16.6 | 1.20x | | Total | | $18.1 | $54.1 | 1.33x | ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000029_b65fea45a407c6793f43446eafa4f5f72e64492728dc36cd79a8ce09dd60c6ee.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000030_d674acd7715a7d432e77888bd444a6c26937b72027f129c93310d95f431ccdf2.png) Photograph ## Hotel $28.3M 3 - 388-key hotel next to a convention center - Equity investment in the north central region - Conversion to a Hilton hotel and stabilization - Acquired in April 2022 ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000031_935f83196180a9b737844a63664777686a2559dfeedc22afcd636e395766ea17.png) Logo ## CAPITALIZATION OVERVIEW | Total Capitalization ($ in Millions) | $2,333.5 | |----------------------------------------|--------------| | Corporate WACC 1 | 5.92% | | Total Asset Specific Financing | $1,581.9 | | WA Asset Specific Debt Spread | SOFR + 1.81% | | Term/Senior Secured Avail. | $954.8 | | Recourse Debt Leverage | 1.6x | | Total Corporate Leverage | 3.2x | ## Outstanding Financing | 99% | Non-Mark-to-Market | |-------|-----------------------------| | 49% | Securitizations | | 35% | Term Reinvestment Financing | | 8% | Senior Unsecured Notes | | 3% | Senior Secured Financing | | 3% | Trust Preferred Securities | | 1% | Mortgages Payable | | 1% | Term Warehouse Financing | ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000032_b10e19424fdb9606e6467b09326a38903d3219d567f706938eae78637bca9d5c.png) Pie chart ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000033_89bd0ed437708643e91da0fff098cfb082eb32c989b1674de1af0b1f5770871f.png) Logo | | Capitalization | Capitalization | Capitalization | Capitalization | Capitalization | |-------------------------------|------------------|------------------|------------------|------------------|------------------| | $ in Millions | Capacity | Amount 3 | $ Avail. | W. Avg. Coupon | Leverage Ratio | | Term Reinvestment Financing 2 | $645.0 | $622.8 | $19.7 | SOFR + 1.75% | 1.1x | | Term Warehouse Financing 2 | 500.0 | 8.1 | 491.6 | SOFR + 1.63% | - | | Senior Secured Financing 2 | 500.0 | 56.4 | 443.5 | SOFR + 3.86% | 0.1x | | Mortgages Payable 2 | 23.8 | 20.9 | 2.1 | SOFR + 3.50% | 0.1x | | Senior Unsecured Notes | 150.0 | 149.9 | - | 5.75% | 0.2x | | Trust Preferred Securities | 51.5 | 51.5 | - | SOFR + 3.95% | 0.1x | | Total Recourse Debt | $1,870.3 | $909.6 | $956.9 | | 1.6x | | Securitizations 2 | 873.7 | 873.7 | - | SOFR + 1.68% | 1.6x | | Total Leverage | $2,744.0 | $1,783.3 | $956.9 | 5.55% | 3.2x | | Preferred Equity | | 224.0 | | 8.76% | | | Common Equity | | 189.3 | | | | | Non-controlling interests | | 136.9 | | | | | Total Capitalization | | $2,333.5 | | 5.92% 1 | | ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000034_8c6e272b5b61a292d4662981f573ddfd515552d9f0ef2a856579769e6b0e5100.png) Logo ## LEVERAGE AND LIQUIDITY TREND ## Leverage Ratios ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000035_fdba845f14c190b2a54a3adce0293882eee0e896a769564ab1f15d2a70d2603e.png) Bar chart ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000036_4d2c0cac5b74d3582e9750f29c68b27ed8dae666ed841df2413f3d798c0f7c89.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000037_83e6066aab8fa6acd13cacf24b8fd626fb03ac7db33063ecacce6f43e88a50a3.png) Bar chart ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000038_b65c511bda80adfed52184058f05399f6da718b1c74806ed927b111cb54d56d9.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000039_83f77e2b7a0fe4082d1e22d32d70c7ee9d4ee1637dfad1bafa8da02238bbd842.png) Logo ## APPENDIX ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000040_6c81ae00af09fa7bf6954c77724914d1cf7a1b3d807137b7fef04a31acc854e8.png) Photograph ## CONSOLIDATED BALANCE SHEETS | (in thousands, except share and per share data) | Jun. 30, 2026 | Jun. 30, 2026 | December 31, 2025 | |---------------------------------------------------|-----------------|-----------------|---------------------| | Assets | | | | | Cash and cash equivalents | | 41,098 | $ 83,768 | | Restricted cash | | 849 | 2,190 | | Accrued interest receivable | | 33,636 | 27,259 | | CRE loans | | 2,128,879 | 1,830,367 | | Less: allowance for credit losses | | (21,114) | (20,398) | | CRE loans, net | | 2,107,765 | 1,809,969 | | Loan receivable - due from Manager | | 10,250 | 10,375 | | Investments in unconsolidated entities | | 30,253 | 29,237 | | Properties held for sale | | 90,899 | 90,825 | | Investments in real estate | | 58,975 | 76,415 | | Right of use assets | | 19,298 | 19,545 | | Intangible assets | | 5,778 | 6,221 | | Other assets | | 7,877 | 6,560 | | Total Assets | | $ 2,406,678 | $ 2,162,364 | | Liabilities | | | | | Accounts payable and other liabilities | | $ 12,694 | $ 7,482 | | Management fee payable - related party | | 521 | - | | Accrued interest payable | | 6,911 | 6,814 | | Borrowings | | 1,783,346 | 1,544,938 | | Lease liabilities | | 46,253 | 45,942 | | Distributions payable | | 3,422 | 3,457 | | Accrued tax liability | | 67 | 8 | | Liabilities held for sale | | 3,233 | 3,131 | | Total Liabilities | | 1,856,447 | 1,611,772 | | Equity | | | | | Series C Preferred stock, par value $0.001 | | 5 | 5 | | Series D Preferred stock, par value $0.001 | | 5 | 5 | | Common stock, par value $0.001 | | 7 | 7 | | Additional paid-in capital | | 1,147,836 | 1,142,410 | | Accumulated other comprehensive loss | | (965) | (1,603) | | Distributions in excess of earnings | | (733,570) | (720,028) | | Total Stockholders' Equity | | 413,318 | 420,796 | | Non-controlling interests | | 136,913 | 129,796 | | Equity | Total | 550,231 | 550,592 | | Total Liabilities and Equity | | $ 2,406,678 | $ 2,162,364 | ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000041_76b746f4d339f2acc8c3460674886ea44964675be6c6c8fd326f03d2d59ebef4.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000042_14dfda6df7d80bed52e36f99268a652927bbe3ccac28493492c313b0e4c22e7e.png) Logo ## CONSOLIDATED STATEMENTS OF OPERATIONS | (Unaudited, in thousands, except share and per share data) | For the Three Months Ended | For the Three Months Ended | For the Six Months Ended | For the Six Months Ended | |----------------------------------------------------------------|------------------------------|------------------------------|----------------------------|----------------------------| | | Jun. 30, 2026 | Jun. 30, 2025 | Jun. 30, 2026 | Jun. 30, 2025 | | Revenues | | | | | | Interest income | $ 38,400 | $ 28,831 | $ 72,760 | $ 57,557 | | Interest expense | 27,881 | 20,264 | 52,995 | 43,387 | | Net interest income | 10,519 | 8,567 | 19,765 | 14,170 | | Real estate income | 10,430 | 13,273 | 18,977 | 24,639 | | Other revenue | 31 | 33 | 62 | 66 | | Total revenues | 20,980 | 21,873 | 38,804 | 38,875 | | Operating Expenses | | | | | | General and administrative | 2,722 | 2,736 | 5,758 | 5,895 | | Real estate expenses | 10,523 | 13,349 | 20,233 | 26,691 | | Management fees - related party | 1,564 | 1,601 | 3,125 | 3,232 | | Equity compensation - related party | 4,893 | 585 | 5,433 | 1400 | | Corporate depreciation and amortization | 18 | 20 | 37 | 38 | | Merger and internalization costs | 5,111 | - | 5,111 | - | | Provision for (reversal of) credit losses, net | 1,683 | (780) | 716 | (2,497) | | Total operating expenses | 26,514 | 17,511 | 40,413 | 34,759 | | Other Income (Expense) | | | | | | Equity in (losses) earnings of unconsolidated subsidiaries | 430 | (669) | 675 | (1,161) | | Gain on sale of investment in real estate | - | - | 3,336 | - | | Other income | 82 | 638 | 105 | 722 | | Total other income | 512 | (31) | 4,116 | (439) | | Income before Taxes | (5,022) | 4,331 | 2,507 | 3,677 | | Income tax expense | - | (7) | (1) | (83) | | Net Income (Loss) | (5,022) | 4,324 | 2,506 | 3,594 | | Net income allocated to preferred shares | (5,096) | (5,282) | (10,210) | (10,595) | | Net loss allocable to non-controlling interest, net of taxes | (2,401) | 226 | (5,838) | 410 | | Net Income (Loss) Allocable to Common Shares | $ (12,519) | $ (732) | $ (13,542) | $ (6,591) | | Net Income (Loss) per Common Share - Basic | $ (1.87) | $ (0.10) | $ (2.04) | $ (0.90) | | Net Income (Loss) per Common Share - Diluted | $ (1.87) | $ (0.10) | $ (2.04) | $ (0.90) | | Weighted Average Number of Common Shares Outstanding - Basic | 6,693,915 | 7,250,624 | 6,626,763 | 7,306,123 | | Weighted Average Number of Common Shares Outstanding - Diluted | 6,693,915 | 7,250,624 | 6,626,763 | 7,306,123 | ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000043_89bd0ed437708643e91da0fff098cfb082eb32c989b1674de1af0b1f5770871f.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000044_8f82c9e348654114bd34cc4863868de8d60e08e64c9506466f752d59ae586133.png) Logo ## EARNINGS AVAILABLE FOR DISTRIBUTION The following table provides a reconciliation from GAAP net income (loss) allocable to common shares to Earnings Available for Distribution allocable to common shares, a non-GAAP measure, for the periods presented 1 : | (Unaudited, in thousands, except share and per share data) | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | For the Six Months Ended | For the Six Months Ended | For the Six Months Ended | |--------------------------------------------------------------------------------------------------|------------------------------|------------------------------|------------------------------|-----------------------------|----------------------------|----------------------------| | | June 30, 2026 | June 30, 2026 | June 30, 2025 June 30, 2026 | June 30, 2025 June 30, 2026 | June 30, 2025 | June 30, 2025 | | Net Loss Allocable to Common Shares - GAAP | $ | (12,519) | $ | $ | (13,542) | (6,591) | | Realized gain on sale of investment in real estate | | - | | | (3,336) | - | | Reconciling Items from Continuing Operations: | | | | | | | | Non-cash equity compensation expense | | 5,098 | | 5,638 | | 1,400 | | Non-cash provision for (reversal of) CRE credit losses 2 | | 1,249 | | | 695 | (2,497) | | Realized net gain (loss) on core activities | | - | | | 3,336 | (700) | | Real estate depreciation and amortization | | 1,226 | 1,213 | | 2,396 | 2,368 | | Earnings (Loss) Available for Distribution Allocable to Common Shares 1 | $ | (4,946) | $ | $ | (4,813) | (6,020) | | Earnings (Loss) Available for Distribution per Common Share - Diluted 1 | $ | (0.74) | $ | $ | (0.73) | (0.82) | | Weighted Average Number of Common Shares Outstanding - Diluted on EAD Allocable to Common Shares | | 6,693,915 | 7,458,446 | | 6,626,763 | 7,306,123 | ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000045_8e69183dc95867e9a958be6a15f7f79a6102e7925359cacadf899bc313968bfc.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000046_d0015e116c02c7807863cc6091e0f873dc8b3df8fc10b0659fad13578c3210cc.png) Logo ## CECL TREND ANALYSIS CHART Since 3Q24, market liquidity and volatility in the commercial real estate sector have caused a decrease in the CECL reserves to 0.99% at 2Q26 ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000047_d12a5bb1a47f3bb31dbb91a9b7cf1af387e0d6e756da73016df3293215674ff4.png) Bar chart ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000048_34ce28d9861d6175803d7ba4dd0edfadb965326a81bd33599fd22c9ae42f08f1.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000049_2ed55b321460ae0a3c85f94f2c656bc1255a1a9708699ef003c7337b786b34f5.png) Logo ## BENCHMARK SENSITIVITY ANALYSIS TREND At June 30, 2026, the CRE loan portfolio is 99% floating rate loans that are indexed to one-month term SOFR with a weighted average floor of 2.22% ## Quarterly Net Interest Income per Share Sensitivity to Changes in SOFR ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000050_5b24db2f4340be6c59854e57673daff975cba56de01121903eabcefd4232121b.png) Bar chart ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000051_6a19ce8c2a6a510a7b5190cdf0517c23ea5aa4657f8503f04d410587b249a048.png) Logo Change to a positive correlation to net interest income assuming a 0.50% to 1.00% increase to SOFR ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000052_92ee0122c60a4338b59914afedc91999c1deb2bd552cbb59f13cc6284beb7a05.png) Bar chart ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000053_4e421a92141380d917ce9ca2aa5ec891398f2362ca7e2b7591a67d6ded89d4bb.png) Logo ## KEY DEFINITIONS ## Earnings Available for Distribution: Earnings Available for Distribution ('EAD') is a non-GAAP financial measure that the Company uses to evaluate its operating performance. EAD excludes the effects of certain transactions and GAAP adjustments that it believes are not necessarily indicative of its current CRE loan portfolio and other CRE-related investments and operations. EAD excludes income (loss) from all non-core assets comprising of investments and securities owned by the Company at the initial measurement date of December 31, 2016 in commercial finance, middle market lending, residential mortgage lending, certain legacy CRE loans and other non-CRE assets designated as assets held for sale. EAD, for reporting purposes, is defined as GAAP net income (loss) allocable to common shares, excluding (i) non-cash equity compensation expense, (ii) unrealized gains and losses, (iii) non-cash provisions for loan losses, (iv) non-cash impairments on securities, (v) non-cash amortization of discounts or premiums associated with borrowings, (vi) net income or loss from a limited partnership interest owned at the initial measurement date, (vii) net income or loss from non-core assets, (viii) real estate depreciation and amortization, (ix) foreign currency gains or losses and (x) income or loss from discontinued operations. EAD may also be adjusted periodically to exclude certain one-time events pursuant to changes in GAAP and certain non-cash items. Although pursuant to the Fourth Amended and Restated Management Agreement the Company calculates the Manager's incentive compensation using EAD excluding incentive fees payable to the Manager, the Company includes incentive fees payable to the Manager in EAD for reporting purposes. ## Secured Overnight Finance Rate: Secured Overnight Finance Rate ('SOFR') refers to the collective onemonth Term Secured Overnight Finance Rate that are used as benchmarks on the originated loans. ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000054_89bd0ed437708643e91da0fff098cfb082eb32c989b1674de1af0b1f5770871f.png) Logo ## Book Value : Book value is presented per common share, excluding unvested restricted stock and including warrants to purchase common stock. The measure refers to common stock book value, which is calculated as total stockholders' equity less preferred stock equity. ## Leverage Ratio: Leverage ratio is calculated as the respective period ended borrowings over total equity. Asset-specific leverage ratio excludes corporate debt from the calculation. ## Current Expected Credit Losses: Current Expected Credit Losses ('CECL') refers to the provision to earnings in order to estimate expected losses. ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000055_f5a377f01ae4b9c23a924bccc19884f9a55c665a6d6a3097193d83581beb0cd9.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000056_ace673b2b23839045066845a15847bc55f0717f558d3557e29c50a73855807c8.png) Logo ## MERGER AND INTERNALIZATION UPDATE ## INTERNALIZATION AND ACQUISITION OF ACRES CAPITAL CORP. A Special Independent Committee of the ACR Board of Directors has unanimously approved the Transaction 99% of votes cast on the proposal to issue shares as part of the internalization transaction were cast in favor of the proposal ## Transaction Overview (1) - On April 29, 2026, ACR executed a definitive agreement to, among other things, acquire its external manager, ACRES Capital LLC. and internalize its management (the 'Transaction') - In connection with the Transaction, ACR will issue shares of ACR common stock as merger consideration and terminate the existing Management Agreement - Subject to the satisfaction of closing conditions, the Transaction is expected to close in Q3 2026 - The Special Committee has received a Fairness Opinion from BTIG, LLC - Book value is projected to reset for closing costs and one-time accounting adjustments associated with the Transaction ## Alignment of Interest - Management will receive 100% of transaction consideration in the form of ACR Shares priced at ACR Book Value per Share (2) - Realized Land Sale 1Q26 ยท Company to internalize management, further aligning the interests of the seasoned management team and ACR shareholders - The completion of the Transaction will eliminate all management fees, incentive fees and reimbursable expenses charged to ACR shareholders pursuant to the existing Management Agreement - Alignment of management interests through significant ownership of ACR. Management and employees to own greater than 45% of ACR shares upon closing ## Enhanced Earnings Profile - Transaction to provide ACR shareholders with third-party fee income earned from an evergreen fund vehicle, separately managed accounts ('SMAs') and a growing insurance platform that will enhance ACR's financial profile - Transaction expected to be immediately accretive to EAD - Targeted post-Transaction EAD yields of 8% - 15% - Anticipated reduced leverage with increased equity base - Improved operating leverage from internalized management structure ## Continuity of Management Team - The current ACRES management team, which has managed ACR since July 2020, and delivered a 65.8% increase in book value, will become employed by ACR and continue to actively manage ACR pursuant to long term employment agreements - ACR intends to retain all employees of the Manager who currently serve in key roles at the Company, including, but not limited to, those who support ACR's asset management, legal, accounting, tax and treasury operations ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000057_4d2c0cac5b74d3582e9750f29c68b27ed8dae666ed841df2413f3d798c0f7c89.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000058_665e55328d91ffb2321c27295bdc1189e49e007b79cc1dbe9c9e71830c4e0998.png) Logo ## HYPOTHETICAL ESTIMATED EAD PROFILE POST-TRANSACTION The chart below is meant to display the illustrative earnings potential of the Company post-Transaction. It is not meant to represent performance guidance for any period. (1) | | ACR Externally Managed | Internal Case 1 | Internal Case 2 | Internal Case 3 | |-------------------------------------------------------------|--------------------------|-------------------|-------------------|-------------------| | Projected CRE loan portfolio size (excl. consolidated Fund) | $2,250.0 | $2,700.0 | $2,700.0 | $2,700.0 | | Target range of GAAP leverage | 3.5x | 3.5x | 3.5x | 3.5x | | Illustrative return on net deployable capital | 12.5% | 13.5% | 13.5% | 13.5% | | CRE net interest income | $71.7 | $83.8 | $83.8 | $83.8 | | AUM fee stream | N/A | 48.3 | 60.0 | 73.2 | | Less: general & administrative | (11.5) | (35.5) | (35.5) | (35.5) | | Less: base and incentive management fees | (6.3) | N/A | N/A | N/A | | Less: corporate interest expense | (13.2) | (32.0) | (32.0) | (32.0) | | Less: other EAD adjustments | (11.6) | (13.9) | (13.9) | (13.9) | | Less: preferred dividends | (20.6) | (20.6) | (20.6) | (20.6) | | Illustrative EAD | $8.5 | $30.1 | $41.8 | $55.0 | | EAD Earnings Per Share | $1.20 | $2.24 | $3.11 | $4.09 | ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000059_4d2c0cac5b74d3582e9750f29c68b27ed8dae666ed841df2413f3d798c0f7c89.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000060_8be1d7813fcd6eb090963cf2ca7374f279056d55184c9781a1e5659f80866b69.png) Logo ## OTHER DISCLOSURES ## Commercial Real Estate Loans Risk Ratings CRE loans are collateralized by a diversified mix of real estate properties and are assessed for credit quality based on the collective evaluation of several factors, including but not limited to: collateral performance relative to underwritten plan, time since origination, current implied and/or re-underwritten loan-to-collateral value ratios, loan structure and exit plan. Depending on the loan's performance against these various factors, loans are rated on a scale from 1 to 5, with loans rated 1 representing loans with the highest credit quality and loans rated 5 representing loans with the lowest credit quality. The factors evaluated provide general criteria to monitor credit migration in the Company's loan portfolio; as such, a loan's rating may improve or worsen, depending on new information received. The criteria set forth below should be used as general guidelines, and therefore not every loan will have all of the characteristics described in each category below. | Rating 1: | Property performance has surpassed underwritten expectations | |-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Rating 2: | Property performance is consistent with underwritten expectations and covenants and performance criteria are being met or exceeded Occupancy is stabilized, near stabilized or is on track with underwriting | | Rating 3: | Property performance lags behind underwritten expectations Occupancy is not stabilized and the property has some tenancy rollover | | Rating 4: | Property performance significantly lags behind underwritten expectations. Performance criteria and loan covenants have required occasional waivers Occupancy is not stabilized and the property has a large amount of tenancy rollover | | Rating 5: | Property performance is significantly worse than underwritten expectations. The loan is not in compliance with loan covenants and performance criteria and may be in default. Expected sale proceeds would not be sufficient to pay off the loan at maturity The property has a material vacancy rate and significant rollover of remaining tenants | ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000061_4b25edc6e4b2c4e34e4028f5f1fd0bee4d1f64c5b34159ec99037d16dc57c483.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000062_ebf5ebefafa94208c80507dd50041f40d87972e69d10540a5057a0b105923ad5.png) Logo ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000063_9e3c816dce95a11e9daa5ad17843320aa7db83abe8025cf4f75e8a58093b17dd.png) Logo A ACRES Commercial Realty Corp. is a real estate investment trust that is primarily focused on originating, holding and managing commercial real estate mortgage loans and equity investments in commercial real estate property through direct ownership and joint ventures. Additional information is available at the Company's website. ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000064_ec6ee73819a8c10d82a6718b870766c9321b3d70bcaef1d7bb3e48833b662069.png) Logo ## CONTACT INFORMATION ## Headquarters: 390 RXR Plaza Uniondale, NY 11556 ## Investor Relations: ir@acresreit.com 516-862-2385 ## New York Stock Exchange: Common Stock Symbol: ACR Pref. Stock Symbols: ACRPrC & ACRPrD ![Image](data/playground/uploads/4833a7add23f5e06-artifacts/4833a7add23f5e06.docling_artifacts/image_000065_c7da80c7274bfc0463532e3067d409fda1b23b15d3eec1eadf29ba7f6eb58c2d.png) Photograph