OARES ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000000_bc08637fc9ddb1490e2a17a1248be57247082f9f4837ba45b32ad6767c00562a.png) Logo ## Second Quarter 2026 Earnings Presentation ## Disclaimer Statements included herein may constitute 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended, which may relate to future events or the future performance or financial condition of Ares Commercial Real Estate Corporation ('ACRE' or, the 'Company'), Ares Commercial Real Estate Management LLC ('ACREM' or the Company's "Manager"), a subsidiary of Ares Management Corporation ('Ares Corp.'), Ares Corp., certain of their subsidiaries and certain funds and accounts managed by ACREM, Ares Corp. and/or their subsidiaries, including, without limitation, ACRE. These statements include, but are not limited to, statements about potential earnings, the resolution of underperforming loans, increased investment activity, liquidity management, reduction or increase of CECL reserve, reduction or increase of available borrowings, the industry and the loan market and are not guarantees of future results or financial condition and involve a number of risks and uncertainties. Actual results could differ materially from those in the forward-looking statements as a result of a number of factors, including global economic trends and economic conditions, including slower growth, changes to fiscal and monetary policy, inflation, labor shortages, changing interest rates, foreign currency exchange volatility and uncertainties caused by tariffs and trade disputes, as well as geopolitical instability, changes in interest rates and credit spreads, management's estimate of current expected credit losses and current expected credit loss reserve, the amount of commercial mortgage loans requiring refinancing, the demand for commercial real estate loans, the Company's expected investment capacity and available capital, rates of default or decreased recovery rates on the Company's target investments, the Company's business and investment strategy, the Company's projected operating results, the ability of Ares Commercial Real Estate Management LLC to locate suitable investments for the Company, monitor, service and administer the Company's investments and execute its investment strategy, and other risks described from time to time in ACRE's filings within the Securities and Exchange Commission ('SEC'). Any forward-looking statement, including any contained herein, speaks only as of the time of this release and none of ACRE, ARES Corp. nor ACREM undertakes any duty to update any forward-looking statements made herein. Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws. Ares Corp. is the parent to several registered investment advisers, including Ares Management LLC ('Ares Management') and ACREM. Collectively, Ares Corp., its affiliated entities, and all underlying subsidiary entities shall be referred to as 'Ares' unless specifically noted otherwise. For a discussion regarding potential risks on ACRE, see Part I., Item 7. 'Management's Discussion and Analysis of Financial Condition and Results of Operations' and Part I., Item 1A. 'Risk Factors' in ACRE's Annual Report on Form 10-K and Part II, Item 1A. "Risk Factors" in ACRE's subsequent Quarterly Reports on Form 10-Q. The information contained in this presentation is summary information that is intended to be considered in the context of ACRE's SEC filings and other public announcements that ACRE, ACREM or Ares may make, by press release or otherwise, from time to time. ACRE, ACREM and Ares undertake no duty or obligation to publicly update or revise the forward-looking statements or other information contained in this presentation. These materials contain information about ACRE, ACREM and Ares, and certain of their respective personnel and affiliates, information about their respective historical performance and general information about the market. You should not view information related to the past performance of ACRE, ACREM or Ares or information about the market, as indicative of future results, the achievement of which cannot be assured. Nothing in these materials should be construed as a recommendation to invest in any securities that may be issued by ACRE or any other fund or account managed by ACREM or Ares, or as legal, accounting or tax advice. None of ACRE, ACREM, Ares or any affiliate of ACRE, ACREM or Ares makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and nothing contained herein shall be relied upon as a promise or representation whether as to the past or future performance. Certain information set forth herein includes estimates and projections and involves significant elements of subjective judgment and analysis. Further, such information, unless otherwise stated, is before giving effect to management and incentive fees and deductions for taxes. No representations are made as to the accuracy of such estimates or projections or that all assumptions relating to such estimates or projections have been considered or stated or that such estimates or projections will be realized. In addition, in light of the various investment strategies of such other investment partnerships, funds and/or pools, it is noted that such other investment programs may have portfolio investments inconsistent with those of the investment vehicle or strategy discussed herein. These materials are not intended as an offer to sell, or the solicitation of an offer to purchase, any security, the offer and/or sale of which can only be made by definitive offering documentation. Any offer or solicitation with respect to any securities that may be issued by ACRE will be made only by means of definitive offering memoranda or prospectus, which will be provided to prospective investors and will contain material information that is not set forth herein, including risk factors relating to any such investment. For the definitions of certain terms used in this presentation, please refer to the "Glossary" slide in the appendix. This presentation may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor's. Such information has not been independently verified and, accordingly, ACRE makes no representation or warranty in respect of this information. Reproduction and distribution of third party content in any form is prohibited except with the prior written permission of the related third party. Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. THIRD PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THIRD PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES, OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice. ## Q2 2026 Company Results and Highlights ## Earnings and Results ## Progress and Positioning ## Investment Activity ## Dividends ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000001_955b8a7804a252254859d17e3ab21c6fb2728ea738418e1c80d00a24d9c0134d.png) Logo - GAAP net income of $4.4 million or $0.08 per diluted common share - Distributable Earnings of $6.9 million or $0.12 per diluted common share 1 - Book value of $489 million or $8.82 per common share (or $11.33 per common share excluding CECL reserve) 2 - $139 million CECL reserve representing 8% of outstanding principal balance of loans held for investment ## Continue to address risk rated 4 and 5 loans, office loans and REO properties - Continued to make progress resolving the four risk rated 4 and 5 loans - The number of risk rated 4 or 5 loans remained consistent QoQ - Reduced office loans to $442 million in Q2 2026, a decrease of $5 million QoQ and $82 million YoY 3 - Adjusted the risk rating of a $13 million subordinated California industrial loan to risk rated 5 (previously risk rated 4) 3 ## Continued to maintain moderate leverage profile and flexible balance sheet position to support asset resolutions and continued investing activity - Collected $16 million of repayments in Q2 2026 bringing total repayments to $111 million YTD - Available capital of $106 million supports continued asset resolutions and investment objectives 4 ## Continued investment activity further diversifies and expands the portfolio to support earnings - Closed three senior loans totaling $130 million in commitments in Q2 2026 across multifamily, self storage and hotel properties - All new loan commitments originated in Q2 2026 were co-investments alongside other Ares managed funds - Increased total loans held for investment portfolio to $1.8 billion in Q2 2026, an increase of $129 million QoQ and $484 million YoY 3 - Sold a $69 million portion of a $144 million senior retail loan commitment that was classified as held for sale in Q1 2026 - Declared cash dividend of $0.15 per common share for shareholders for Q3 2026, which equates to an annualized implied dividend yield of approximately 14% to our stock price as of July 30, 2026 5 ## Portfolio Overview ## Portfolio Highlights ## $1.9 billion total portfolio comprised of loans held for investment and two REO properties 1 - Risk rated 1-3 loans (ex. office): Represents 63% of the total portfolio including a majority of loans collateralized by multifamily and industrial properties 1 - Risk rated 1-3 office loans: Continued to perform with stable to improving leasing trends and continued sponsor support - Risk rated 4 and 5 loans: The two largest loans represent 93% of the four risk rated 4 and 5 loans 1 - REO: Both properties have income yields of 10% or greater 2 | | 63% 1 | 14% 1 | 16% 1 | 7% 1 | 100% 1 | |----------------------------------------|-----------------------------------|-----------------------------|--------------------------|--------|----------| | ACRE's Total Portfolio ($ in millions) | Risk Rated 1-3 Loans (ex. Office) | Risk Rated 1-3 Office Loans | Risk Rated 4 and 5 Loans | REO 3 | Total | | Number of Loans or REO Properties | 29 | 5 | 4 | 2 | 40 | | Carrying Amount 1 | $1,189 | $264 | $296 | $130 | $1,879 | ## Progress on Largest Risk Rated 4 and 5 Loans ## Brooklyn Residential/Condo (Risk Rated 4) ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000002_e8d2b9e8f454290a1abc08e8a6c18f4b622f36d2bf59a6ad70b6f0ad00bd0c30.png) Photograph ## Chicago Office (Risk Rated 5) ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000003_ea958840967fc24b3dfb556ab6a7dbc708263b4260ccf75fb432ddcecedaf5ec.png) Photograph ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000004_ae174e9f3a5bf048db7228e4fcceeb828e396acf482c2911f94a67a5bfbcbf90.png) Logo - Carrying Value: $136 million - Q2 2026 Update: Occupancy is over 90% with a weighted average lease term over seven years. The borrower continues to engage in a potential sale - Carrying Value: $140 million - Q2 2026 Update: Construction on the building is substantially complete. Pre-sales activity is progressing As of June 30, 2026, unless otherwise noted. Past performance may not be indicative of future results. Due to rounding, numbers presented may not add up to the totals provided. 1) Based on carrying value of loans held for investment, which excludes the CECL Reserve. REO properties are held at carrying amount net of accumulated depreciation and amortization.The North Carolina office property was reclassified as held for sale in Q1 2026 and therefore did not accumulate additional depreciation and amortization in Q2 2026. 2) Income yield is calculated as the annualized property level net operating income based on the three months ended June 30, 2026 (excluding non-recurring items) divided by the carrying amount. 3) REO includes REO held for investment and REO held for sale. ## Ares Management is a Global Leader With approximately $671 billion in assets under management, Ares Management Corporation is a global alternative investment manager operating an integrated platform across five business groups | Founded | 1997 | |---------------------------------------------------|---------| | AUM $671 | billion | | Employees 4,430+ | | | Investment Professionals 1,665+ | | | Global Offices 55+ | 1 | | Direct Institutional Relationships 2,900+ | | | Listing: NYSE - Market Capitalization $42 billion | 2 | ## The Ares Differentiators - Power of a broad and scaled platform enhancing investment capabilities - 25+ year track record of attractive risk adjusted returns through market cycles 6 - Deep management team with integrated and collaborative approach - A pioneer and leader in leveraged finance, private credit and secondaries ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000005_f4b9c3eda8910c2b78b433a4ba45bfffa28c3787ecde6d3d7a632ec0aaea45bf.png) Logo ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000006_63f04538ca8c3e66bb0dbc9a9a1cd8375a80c63ac82f3159d0b5684467302704.png) Geographical map | | Credit | Real Assets | Secondaries | Private Equity | Other Businesses 4 | |--------------------------|--------------------------------------|-----------------------------------------------------------------|--------------------------------------|--------------------------------------|----------------------| | AUM | $441 billion | $151 billion | $44 billion | $24 billion | $11 billion | | Investment Funds 5 | 335+ | 115+ | 100+ | 65+ | 5+ | | Investment Professionals | 565+ | 875+ | 85+ | 85+ | 45+ | | Local Market Presence | North America, Europe & Asia-Pacific | North America, Europe & Asia-Pacific | North America, Europe & Asia-Pacific | North America, Europe & Asia-Pacific | North America | | Current Portfolio | 3,940+ companies | 100+ infra projects and companies 1,400+ real estate properties | 12,000+ companies 7 | 120+ companies | $89 billion 8 | Note: As of June 30, 2026. Ares AUM includes funds managed by Ivy Hill Asset Management, L.P., a wholly owned portfolio company of Ares Capital Corporation and registered investment adviser. Past performance is not indicative of future results. 1) Only counts one location per metro area. Includes only offices that Ares has leased or acquired. Does not include legacy GCP International locations where Ares is not acquiring the leases. 2) As of July 24, 2026. 3) New Delhi office is operated by a third party with whom Ares Asia maintains an ongoing relationship relating to the sourcing, acquisition and/or management of investments. 4) Includes Ares Insurance Solutions, our dedicated, in-house team that provides solutions to insurance clients and the Ares AI and Innovation / Venture Capital Groups. 5) Investment Fund counts are reflective of commingled funds as well as SMAs, co-invest vehicles, and other types of accounts. 6) Risk adjusted returns do not guarantee against loss of capital. 7) Reflective of the current underlying companies and properties within Secondaries Group, Credit, Private Equity, Real Estate and Infrastructure commingled funds. 8) As of March 31, 2026, $89 billion in AUM represents investments by insurance companies in various Ares' funds, SMAs and co-investments versus one discrete insurance platform. The AUM for these investments is included across each of our investment strategies and presented within other businesses to demonstrate the scale of our aggregated insurance platform. ## Ares Real Estate is a Global Investment Manager and Operator ## $121 billion+ Real Estate Q2 2026 AUM 4,000+ Global Real Estate Properties ## Competitive Edge Delivers Demonstrated Performance Scale and global reach yield real-time market intelligence and drive deal flow Combination of vertical integration and longstanding operating partners delivers proprietaryinvestment opportunities for investors Seasoned and collaborative team enables us to adapt to market changes and positions us strongly for opportunities 350+ Investment Professionals 1 ~790 million Global Portfolio Square Feet 370+ Operating Professionals 2 100 thousand+ | 655 million+ Residential Units 3 | Logistics Square Feet ## Comprehensive and Dynamic Investment Solutions ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000007_202a0ca7c736c4de36c3740a60f490ecacba7a17cc116ed44a6ad5878febaeb4.png) Line chart Regional and sector-specific offerings across capital structure,return spectrum and vehicle types differentiate us from peers Office loans measured by outstanding principal balance decreased 1% QoQ, 16% YoY and nearly 50% in the last three years ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000008_955b8a7804a252254859d17e3ab21c6fb2728ea738418e1c80d00a24d9c0134d.png) Logo Office Loans QoQ and YoY as Measured by Outstanding Principal Balance ($ in millions) ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000009_fb30da71b0fd6d45064fa08063b90d7becf1f03ce6980e1e610b195a69e1e885.png) Bar chart ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000010_f4b9c3eda8910c2b78b433a4ba45bfffa28c3787ecde6d3d7a632ec0aaea45bf.png) Logo ## Balance Sheet and Capital Position Maintained balance sheet flexibility which supports the ability to resolve risk rated 4 and 5 loans and continued investment activity ## Continued to Maintain Balance Sheet Flexibility ($ in millions) ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000011_191ab52d8748353162bc170c4788dcbc689f389292cf3f14bcb46262d8230fbd.png) Bar chart ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000012_03204c08821be548b80facef01de58cafdd2d1adee26be09e2ce6539cc4acbb2.png) Logo As of June 30, 2026, unless otherwise noted. Past performance is not indicative of future results. Due to rounding, numbers presented may not add up to the totals provided. 1) Total outstanding borrowings is based on total outstanding principal balance. 2) Net debt to equity ratio (excluding CECL reserve) is calculated as (i) $1.3 billion outstanding principal of borrowings less $18 million of cash, (ii) divided by the sum of total stockholders' equity of $489 million plus CECL reserve of $139 million. Net debt to equity ratio including CECL reserve is 2.5x as of June 30, 2026. Total debt to equity ratio excluding CECL reserve is 2.0x and including CECL reserve is 2.6x as of June 30, 2026. Please see prior earnings presentations for calculations of net debt to equity ratio for prior periods. 3) As of June 30, 2026, includes $18 million of cash and approximately $88 million of available financing proceeds under our secured funding agreements. ## Repayments on Loans Held for Investment ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000013_5d1e21ea76b6fb9c27aba39d1843fa946cf820f2eb9f97092bebd7f2f0ea52f0.png) Table ## Available Capital 3 ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000014_1fe4c19b0e16e8cf853cec4449cbdb2cca364b413f75bbc127e02f0e8992004d.png) Table ## Trends in CECL Reserves Trends in CECL Reserves ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000015_2e2a2f7630597355368f8d80343f356738f395ce255463c7769833877992c74c.png) Bar chart ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000016_c0dccaecacd5fa588245bb53ee4463af542213333cc8cc46c8ec2f957dcafe18.png) Logo ## CECL Reserve ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000017_1b1429a225f1539f4747aecec5713d656349c4ab912ea47437437dd47c9130ff.png) Page thumbnail ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000018_955b8a7804a252254859d17e3ab21c6fb2728ea738418e1c80d00a24d9c0134d.png) Logo ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000019_71bbef6e685aaca9e27b24b83fca3dfe4aa71a34a2e7484ea0320b53f1388e07.png) Pie chart ## CECL Reserve for Risk Rated 4 and 5 Loans ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000020_916a0ee334e4c47f665a2ffe830d1bd65bece1cce8cb973f0094e00e8845e4a6.png) Other ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000021_955b8a7804a252254859d17e3ab21c6fb2728ea738418e1c80d00a24d9c0134d.png) Logo Risk Rated 4 and 5 Loans CECL Reserve by Property Type ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000022_34161146bfe38e9654ebdb81e9a5e98cc859f7be6ec08c13ada2141bc87d34ae.png) Pie chart Risk Rated 4 and 5 Loans CECL Reserve as a Percent of Loan Balance 2 ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000023_30299090f968e949ce2057e4aa273f296f75e9b81699281015c55310cdce49f7.png) Bar chart ## Summary of Real Estate Owned ("REO") ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000024_5a760d829b7f282c7d379fabc2cad4a9cbaed78d2b1010bfc27b266d73e6316e.png) Photograph | | Mixed-Use | Office | |--------------------------|---------------------|----------------| | Quarter Converted to REO | Q3 2023 | Q3 2024 | | Location | Florida | North Carolina | | Square Footage | 816 thousand | 554 thousand | | Carrying Amount 1 | $76 million | $54 million | | Income Yield 2 | 10% | 12% | | Classification | Held for Investment | Held for Sale | ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000025_06a2824c3f1350478ce269e759b78893b32a23aa8c596ff146c5d7eefb227b64.png) Logo ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000026_6bce13f0015fda7ebcb6aec5977b984606083a5447d7bd838628430bfa37a3f0.png) Photograph 1. ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000027_60d958716861e6219a36144976a00c8d5bd525ce31d271ae8669a474ece903e8.png) Logo OARES Appendix ## Loans Held for Investment Portfolio Details ## ($ in millions) | # | Loan Type | Location | Origination Date | Current Loan Commitment | Outstanding Principal | Carrying Value | Interest Rate | SOFR Floor | Unleveraged Effective Yield | Maturity Date | Payment Terms 1 | |---------------|---------------|---------------|--------------------|---------------------------|-------------------------|------------------|-----------------|---------------|-------------------------------|-----------------|-------------------| | Office Loans: | Office Loans: | Office Loans: | Office Loans: | Office Loans: | Office Loans: | Office Loans: | Office Loans: | Office Loans: | Office Loans: | Office Loans: | Office Loans: | | 1 | Senior | IL | Nov 2020 | $169.0 | $169.0 | $136.3 | 2 | 1.5% | -% 2 | Jul 2026 2 | I/O | | 2 | Senior | NC | Aug 2021 | 85.0 | 72.7 | 72.7 | S+3.65% | 0.2% | 7.3% | Aug 2028 | I/O | | 3 | Senior | AZ | Sep 2021 | 65.0 | 65.0 | 65.0 | S+2.00% | 0.5% | 5.7% | Oct 2027 3 | I/O | | 4 | Senior | NY | Jul 2021 | 65.0 | 65.0 | 65.0 | S+2.65% | 0.4% | 6.3% | Jul 2028 | I/O | | 5 | Senior | IL | Dec 2022 | 53.7 | 53.7 | 53.7 | S+4.25% | 3.0% | 8.0% | Jan 2027 | P/I | | 6 | Subordinated | AZ | Sep 2021 | 20.7 | 8.7 | 8.5 | 3 | -% | 6.6% | Oct 2027 3 | I/O | | 7 | Senior | Diversified | Jan 2020 | 7.9 | 7.9 | 7.9 | S+3.75% | 1.6% | 12.4% | Jul 2026 | P/I | | Total Office | Total Office | Total Office | Total Office | $466.3 | $442.0 | $409.1 | | | | | | | Hotel Loans: | Hotel Loans: | Hotel Loans: | Hotel Loans: | Hotel Loans: | Hotel Loans: | Hotel Loans: | Hotel Loans: | Hotel Loans: | Hotel Loans: | Hotel Loans: | Hotel Loans: | | 8 | Senior | NY | Mar 2022 | $55.7 | $55.7 | $55.6 | S+4.40% | 0.1% | 8.3% | Mar 2027 | I/O | | 9 | Senior | SC | Oct 2025 | 58.0 | 48.3 | 47.9 | S+3.50% | 3.0% | 7.6% | Nov 2028 | I/O | | 10 | Senior | CA | Jun 2026 | 35.0 | 35.0 | 34.7 | S+2.95% | 2.3% | 7.1% | Jun 2028 | I/O | | 11 | Senior | Diversified | Nov 2025 | 25.0 | 23.9 | 23.7 | S+3.75% | 3.0% | 7.8% | Nov 2028 | I/O | | 12 | Senior | FL | Nov 2025 | 25.0 | 19.4 | 19.2 | S+3.35% | 2.8% | 7.4% | Dec 2028 | I/O | | Total Hotel | Total Hotel | Total Hotel | Total Hotel | $198.7 | $182.3 | $181.1 | | | | | | ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000028_b66a88a305b4bdc0c889ff2e2c761680c6fcc6d4d0bdb8643afcf19c77ef91a3.png) Logo As of June 30, 2026 unless otherwise noted. Past performance is not indicative of future results. Due to rounding, numbers presented may not add up to the totals provided. 1) I/O = interest only, P/I = principal and interest. 2) The Illinois loan is structured as both a senior and mezzanine loan with the Company holding contiguous positions. The senior position has a per annum interest rate of S + 2.25% and the mezzanine position has a fixed per annum interest rate of 10.00%. The senior and mezzanine loans were both on non-accrual status as of June 30, 2026 and the Unleveraged Effective Yield is not applicable. In April 2026, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the Illinois loan from April 2026 to July 2026. 3) The Arizona loan is structured as a senior A-Note with an outstanding principal balance of $65.0 million, a subordinated B-Note with no initial outstanding principal balance and an unfunded commitment of $12.0 million for certain lender approved leasing costs and a subordinated C-Note with an outstanding principal balance of $8.7 million. The subordinated B-Note is pari-passu with new borrower contributions for the loan principal paydown and other additional capital contributions. The subordinated C-Note is subordinate to the A-Note, B-Note and the new borrower contributions. The senior A-Note has a per annum interest rate of S + 2.00%, the subordinated B-Note has a fixed per annum interest rate of 12.00% and the subordinated C-Note has a fixed per annum interest rate of 5.50%. ## Loans Held for Investment Portfolio Details ## ($ in millions) | # | Loan Type | Location | Origination Date | Current Loan Commitment | Outstanding Principal | Carrying Value | Interest Rate | SOFR Floor | Unleveraged Effective Yield | Maturity Date | Payment Terms 1 | |--------------------|--------------------|--------------------|--------------------|---------------------------|-------------------------|--------------------|--------------------|--------------------|-------------------------------|--------------------|--------------------| | Multifamily Loans: | Multifamily Loans: | Multifamily Loans: | Multifamily Loans: | Multifamily Loans: | Multifamily Loans: | Multifamily Loans: | Multifamily Loans: | Multifamily Loans: | Multifamily Loans: | Multifamily Loans: | Multifamily Loans: | | 13 | Senior | NY | May 2022 | $132.2 | $132.2 | $131.8 | S+3.90% | 0.2% | 7.8% | Jun 2027 2 | I/O | | 14 | Senior | NY | Feb 2026 | 100.0 | 84.0 | 83.1 | S+2.45% | 3.0% | 6.5% | Mar 2029 | I/O | | 15 | Senior | TX | Nov 2021 | 67.4 | 67.4 | 67.2 | S+2.95% | -% | 7.2% | Dec 2026 | P/I | | 16 | Senior | OH | Sep 2023 | 57.8 | 57.3 | 57.2 | S+3.05% | 2.5% | 7.1% | Oct 2026 | I/O | | 17 | Senior | NC | Oct 2025 | 50.0 | 50.0 | 49.7 | S+2.40% | 3.0% | 6.6% | Oct 2027 | I/O | | 18 | Senior | MA | Sep 2025 | 50.0 | 49.0 | 48.6 | S+3.10% | 2.8% | 7.3% | Oct 2027 | I/O | | 19 | Senior | TN | Apr 2026 | 25.0 | 22.6 | 22.3 | S+2.55% | 3.0% | 6.6% | May 2029 | I/O | | 20 | Senior | TX | Oct 2021 | 18.2 | 18.2 | 18.2 | S+2.60% | -% | 6.5% | Jul 2026 3 | I/O | | Total Multifamily | Total Multifamily | Total Multifamily | Total Multifamily | $500.6 | $480.7 | $478.1 | | | | | | | Industrial Loans: | Industrial Loans: | Industrial Loans: | Industrial Loans: | Industrial Loans: | Industrial Loans: | Industrial Loans: | Industrial Loans: | Industrial Loans: | Industrial Loans: | Industrial Loans: | Industrial Loans: | | 21 | Senior | GA | Oct 2025 | $100.5 | $96.9 | $96.1 | S+2.25% | 2.5% | 6.3% | Oct 2028 | I/O | | 22 | Senior | CA | Oct 2025 | 55.2 | 55.2 | 54.8 | S+3.00% | 3.0% | 7.0% | Nov 2028 | I/O | | 23 | Senior | MA | Jun 2023 | 46.5 | 45.6 | 45.5 | S+2.90% | -% | 6.7% | Jun 2028 | I/O | | 24 | Senior | NJ | Jun 2021 | 27.8 | 27.8 | 27.8 | S+8.85% | 0.2% | 12.5% | Nov 2024 4 | I/O | | 25 | Subordinated | CA | Aug 2019 | 13.1 | 12.6 | 10.9 | S+3.85% | 2.0% | -% 5 | Jan 2027 | I/O | | 26 | Senior | CA | Aug 2019 | 7.0 | 7.0 | 7.0 | S+3.85% | 2.0% | 7.5% | Jan 2027 5 | I/O | | Total Industrial | Total Industrial | Total Industrial | Total Industrial | $250.1 | $245.1 | $242.1 | | | | | | ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000029_b66a88a305b4bdc0c889ff2e2c761680c6fcc6d4d0bdb8643afcf19c77ef91a3.png) Logo As of June 30, 2026 unless otherwise noted. Past performance is not indicative of future results. Due to rounding, numbers presented may not add up to the totals provided. 1) I/O = interest only, P/I = principal and interest. 2) In June 2026, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior New York loan from June 2026 to June 2027. 3) In June 2026, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior Texas loan from May 2026 to July 2026. 4) As of June 30, 2026, the senior New Jersey loan, which is collateralized by an industrial property, is in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the November 2024 maturity date and the borrower is current on all contractual interest payments. 5) The California loan is structured as a senior A-Note, with an outstanding principal balance of $7.0 million as of June 30, 2026, a subordinated B-Note with no outstanding principal balance and an unfunded commitment of $500 thousand for certain lender approved leasing costs and a subordinated C-Note with an outstanding principal balance of $12.6 million as of June 30, 2026. The subordinated B-Note and C-Note are subordinate to new borrower equity related to additional capital contributions. As of June 30, 2026, the subordinated C-Note was on non-accrual status and therefore, the Unleveraged Effective Yield is not applicable. ## Loans Held for Investment Portfolio Details ## ($ in millions) | # | Loan Type | Location | Origination Date | Current Loan Commitment | Outstanding Principal | Carrying Value | Interest Rate | SOFR Floor | Unleveraged Effective Yield | Maturity Date | Payment Terms 1 | |--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------| | Residential/Condominium Loans: | Residential/Condominium Loans: | Residential/Condominium Loans: | Residential/Condominium Loans: | Residential/Condominium Loans: | Residential/Condominium Loans: | Residential/Condominium Loans: | Residential/Condominium Loans: | Residential/Condominium Loans: | Residential/Condominium Loans: | Residential/Condominium Loans: | Residential/Condominium Loans: | | 27 | Senior | NY | Mar 2022 | $189.5 | $189.5 | $140.2 | S+8.95% | 0.4% | -% 2 | Dec 2026 | I/O | | Total Residential/Condominium | Total Residential/Condominium | Total Residential/Condominium | Total Residential/Condominium | $189.5 | $189.5 | $140.2 | | | | | | | Mixed-Use Loans: | Mixed-Use Loans: | Mixed-Use Loans: | Mixed-Use Loans: | Mixed-Use Loans: | Mixed-Use Loans: | Mixed-Use Loans: | Mixed-Use Loans: | Mixed-Use Loans: | Mixed-Use Loans: | Mixed-Use Loans: | Mixed-Use Loans: | | 28 | Senior | NY | Feb 2026 | $34.2 | $29.9 | $29.5 | S+3.25% | 2.8% | 7.8% | Jan 2028 | I/O | | Total Mixed-Use | Total Mixed-Use | Total Mixed-Use | Total Mixed-Use | $34.2 | $29.9 | $29.5 | | | | | | | Retail Loans: | Retail Loans: | Retail Loans: | Retail Loans: | Retail Loans: | Retail Loans: | Retail Loans: | Retail Loans: | Retail Loans: | Retail Loans: | Retail Loans: | Retail Loans: | | 29 | Senior | CA | Mar 2026 | $75.0 | $67.3 | $66.6 | S+2.75% | 2.5% | 6.8% | Mar 2029 | I/O | | Total Retail | Total Retail | Total Retail | Total Retail | $75.0 | $67.3 | $66.6 | | | | | | ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000030_b66a88a305b4bdc0c889ff2e2c761680c6fcc6d4d0bdb8643afcf19c77ef91a3.png) Logo ## Loans Held for Investment Portfolio Details ## ($ in millions) | # | Loan Type | Location | Origination Date | Current Loan Commitment | Outstanding Principal | Carrying Value | Interest Rate | SOFR Floor | Unleveraged Effective Yield | Maturity Date | Payment Terms 1 | |---------------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|---------------------------|-------------------------|---------------------|---------------------|---------------------|-------------------------------|---------------------|---------------------| | Self Storage Loans: | Self Storage Loans: | Self Storage Loans: | Self Storage Loans: | Self Storage Loans: | Self Storage Loans: | Self Storage Loans: | Self Storage Loans: | Self Storage Loans: | Self Storage Loans: | Self Storage Loans: | Self Storage Loans: | | 30 | Senior | Diversified | Dec 2025 | $72.5 | $70.6 | $70.0 | S+2.50% | 2.8% | 6.5% | Dec 2028 | I/O | | 31 | Senior | Diversified | Apr 2026 | 69.7 | 65.0 | 64.3 | S+2.70% | 2.8% | 6.7% | May 2029 | I/O | | 32 | Senior | FL | Jul 2025 | 12.3 | 12.3 | 12.3 | S+3.25% | 1.0% | 7.0% | Dec 2027 | I/O | | 33 | Senior | IN | Sep 2023 | 11.4 | 11.4 | 11.4 | S+3.60% | 0.9% | 7.5% | Aug 2026 2 | I/O | | 34 | Senior | AZ | Jul 2025 | 11.2 | 10.8 | 10.8 | S+3.25% | 3.0% | 7.2% | Feb 2028 | I/O | | 35 | Senior | FL | Jul 2025 | 9.9 | 9.6 | 9.6 | S+3.75% | 3.0% | 7.5% | Jun 2028 | I/O | | 36 | Senior | PA | Jul 2025 | 9.1 | 8.9 | 8.9 | S+3.50% | 2.0% | 7.5% | May 2028 | I/O | | 37 | Senior | MA | Apr 2022 | 7.7 | 7.7 | 7.7 | S+3.00% | 0.8% | 6.9% | Nov 2026 | I/O | | 38 | Senior | FL | Oct 2025 | 7.3 | 7.1 | 7.1 | S+3.50% | 3.0% | 7.5% | Apr 2028 | I/O | | Total Self Storage | Total Self Storage | Total Self Storage | Total Self Storage | $211.1 | $203.4 | $202.1 | | | | | | | Loan Portfolio Total/Weighted Average | Loan Portfolio Total/Weighted Average | Loan Portfolio Total/Weighted Average | Loan Portfolio Total/Weighted Average | $1,925.5 | $1,840.2 | $1,748.8 | | 1.7% 3 | 5.7% | | | ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000031_b66a88a305b4bdc0c889ff2e2c761680c6fcc6d4d0bdb8643afcf19c77ef91a3.png) Logo ## Consolidated Balance Sheets | | As of | As of | As of | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|-------------|------------| | ($ in thousands, except share and per share data) | 6/30/2026 | | 12/31/2025 | | ASSETS | | | | | Cash and cash equivalents | $ | 17,558 $ | 29,289 | | Restricted cash ($1,108 related to consolidated VIEs as of December 31, 2025) | | 41,017 | 37,868 | | Loans held for investment ($138,950 related to consolidated VIEs as of December 31, 2025) | | 1,748,835 | 1,528,806 | | Current expected credit loss reserve | | (137,810) | (125,756) | | Loans held for investment, net of current expected credit loss reserve | | 1,611,025 | 1,403,050 | | Real estate owned held for investment, net ($52,634 related to consolidated VIEs as of December 31, 2025) | | 76,238 | 130,165 | | Real estate owned held for sale | | 53,934 | - | | Other assets ($76 of interest receivable related to consolidated VIEs as of December 31, 2025) | | 17,503 | 17,770 | | Total assets | $ | 1,817,275 $ | 1,618,142 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | LIABILITIES | | | | | Secured funding agreements | $ | 1,173,027 $ | 858,176 | | Secured term loan | | 89,722 | 89,360 | | Collateralized loan obligation securitization debt (consolidated VIEs) | | - | 99,921 | | Due to affiliate | | 4,199 | 4,061 | | Dividends payable | | 8,458 | 8,442 | | Other liabilities ($257 of interest payable related to consolidated VIEs as of December 31, 2025) | | 52,644 | 48,614 | | Total liabilities | | 1,328,050 | 1,108,574 | | Commitments and contingencies | | | | | STOCKHOLDERS' EQUITY | | | | | Common stock, par value $0.01 per share, 450,000,000 shares authorized at June 30, 2026 and December 31, 2025 and 55,481,113 and 55,026,453 shares issued and outstanding June 30, 2026 and December 31, 2025, respectively | | 532 | 532 | | Additional paid-in capital | | 822,606 | 820,827 | | Accumulated earnings (deficit) | | (333,913) | (311,791) | | Total stockholders' equity | | 489,225 | 509,568 | | Total liabilities and stockholders' equity | $ | 1,817,275 $ | 1,618,142 | ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000032_f4b9c3eda8910c2b78b433a4ba45bfffa28c3787ecde6d3d7a632ec0aaea45bf.png) Logo ## Consolidated Statements of Operations | | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | |-----------------------------------------------------------------|------------------------------|------------------------------|------------------------------|------------------------------|------------------------------|------------------------------| | ($ in thousands, except share and per share data) | 6/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | | Revenue: | | | | | | | | Interest income | $ | 27,754 $ | 24,906 $ | 23,732 $ | 23,261 $ | 23,117 | | Interest expense | | (19,182) | (17,361) | (16,078) | (14,790) | (16,101) | | Net interest margin | | 8,572 | 7,545 | 7,654 | 8,471 | 7,016 | | Revenue from real estate owned | | 5,784 | 5,915 | 5,562 | 5,634 | 5,549 | | Total revenue | | 14,356 | 13,460 | 13,216 | 14,105 | 12,565 | | Expenses: | | | | | | | | Management and incentive fees to affiliate | | 2,394 | 2,400 | 2,420 | 2,420 | 2,430 | | Professional fees | | 699 | 819 | 678 | 526 | 673 | | General and administrative expenses | | 1,723 | 1,417 | 1,595 | 1,733 | 1,995 | | General and administrative expenses reimbursed to affiliate | | 853 | 787 | 810 | 781 | 1,024 | | Expenses from real estate owned | | 3,301 | 3,134 | 4,495 | 4,540 | 4,628 | | Total expenses | | 8,970 | 8,557 | 9,998 | 10,000 | 10,750 | | (Provision for) reversal of current expected credit losses, net | | (865) | (11,138) | (9,835) | 2,190 | 20,150 | | Realized losses on loans | | - | (3,340) | - | (1,643) | (33,000) | | Realized gain (loss) on sale of real estate owned | | - | - | 2,757 | - | - | | Income (loss) before income taxes | | 4,521 | (9,575) | (3,860) | 4,652 | (11,035) | | Income tax expense (benefit), including excise tax | | 138 | 30 | 5 | (1) | - | | Net income (loss) attributable to common stockholders | $ | 4,383 $ | (9,605) $ | (3,865) $ | 4,653 $ | (11,035) | | Earnings (loss) per common share: | | | | | | | | Basic earnings (loss) per common share | $ | 0.08 $ | (0.17) $ | (0.07) $ | 0.08 $ | (0.20) | | Diluted earnings (loss) per common share | $ | 0.08 $ | (0.17) $ | (0.07) $ | 0.08 $ | (0.20) | | Weighted average number of common shares outstanding: | | | | | | | | Basic weighted average shares of common stock outstanding | | 55,367,375 | 55,322,222 | 54,951,917 | 54,904,862 | 54,856,949 | | Diluted weighted average shares of common stock outstanding | | 56,354,988 | 55,322,222 | 54,951,917 | 55,775,825 | 54,856,949 | | Dividends declared per share of common stock 1 | $ | 0.15 $ | 0.15 $ | 0.15 $ | 0.15 $ | 0.15 | ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000033_b66a88a305b4bdc0c889ff2e2c761680c6fcc6d4d0bdb8643afcf19c77ef91a3.png) Logo ## Reconciliation of Net Income (Loss) to Non-GAAP Distributable Earnings (Loss) | | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | |-----------------------------------------------------------------------------------|------------------------------|------------------------------|------------------------------|------------------------------|------------------------------|------------------------------| | ($ in thousands, except per share data) | 6/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | | Net income (loss) attributable to common stockholders | $ | 4,383 $ | (9,605) $ | (3,865) $ | 4,653 $ | (11,035) | | Stock-based compensation | | 882 | 897 | 893 | 1,024 | 937 | | Incentive fees to affiliate | | - | - | - | - | - | | Depreciation and amortization of real estate owned | | 749 | 741 | 1,605 | 2,009 | 2,318 | | Provision for (reversal of) current expected credit losses, net | | 865 | 11,138 | 9,835 | (2,190) | (20,150) | | Distributable Earnings (Loss) | $ | 6,879 $ | 3,171 $ | 8,468 $ | 5,496 $ | (27,930) | | Realized (gains) losses | | - | 3,340 | (2,398) | 1,643 | 33,000 | | Distributable Earnings excluding realized (gains) losses | $ | 6,879 $ | 6,511 $ | 6,070 $ | 7,139 $ | 5,070 | | Net income (loss) attributable to common stockholders | | 0.08 | (0.17) | (0.07) | 0.08 | (0.20) | | Stock-based compensation | | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | | Incentive fees to affiliate | | - | - | - | - | - | | Depreciation and amortization of real estate owned | | 0.01 | 0.01 | 0.03 | 0.04 | 0.04 | | Provision for (reversal of) current expected credit losses, net | | 0.02 | 0.20 | 0.18 | (0.04) | (0.37) | | Basic Distributable Earnings (Loss) per common share | $ | 0.12 $ | 0.06 $ | 0.15 $ | 0.10 $ | (0.51) | | Realized (gains) losses | | - | 0.06 | (0.04) | 0.03 | 0.60 | | Basic Distributable Earnings excluding realized (gains) losses per common share | $ | 0.12 $ | 0.12 $ | 0.11 $ | 0.13 $ | 0.09 | | Net income (loss) attributable to common stockholders | | 0.08 | (0.17) | (0.07) | 0.08 | (0.20) | | Stock-based compensation | | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | | Incentive fees to affiliate | | - | - | - | - | - | | Depreciation and amortization of real estate owned | | 0.01 | 0.01 | 0.03 | 0.04 | 0.04 | | Provision for (reversal of) current expected credit losses, net | | 0.02 | 0.20 | 0.18 | (0.04) | (0.37) | | Diluted Distributable Earnings (Loss) per common share | $ | 0.12 $ | 0.06 $ | 0.15 $ | 0.10 $ | (0.51) | | Realized (gains) losses | | - | 0.06 | (0.04) | 0.03 | 0.60 | | Diluted Distributable Earnings excluding realized (gains) losses per common share | $ | 0.12 $ | 0.12 $ | 0.11 $ | 0.13 $ | 0.09 | ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000034_b66a88a305b4bdc0c889ff2e2c761680c6fcc6d4d0bdb8643afcf19c77ef91a3.png) Logo ## Diverse Sources of Financing Supports Portfolio Diversified financing sources totaling $1.5 billion with $277 million of undrawn capacity 1,2 ## ($ in millions) | Financing Sources | Total Commitments 1 | Outstanding Principal | Pricing Range | Mark to Credit | Non Spread Based Mark to Market | |----------------------------|-----------------------|-------------------------|--------------------|------------------|-----------------------------------| | Secured Funding Agreements | | | | | | | Wells Fargo Facility | $600.0 | $563.0 | SOFR+1.35 to 3.75% | | | | Citibank Facility | 425.0 | 340.2 | SOFR+1.50 to 3.00% | | | | Morgan Stanley Facility | 350.0 3 | 269.9 | SOFR+1.55 to 3.50% | | | | CNB Facility | 75.0 2 | - | SOFR+3.25% | | | | Subtotal | $1,450.0 | $1,173.0 | | | | | Capital Markets | | | | | | | Secured Term Loan | $90.0 | $90.0 | 5.75% (Fixed) 4 | | | | Subtotal | $90.0 | $90.0 | | | | | Total Debt | $1,540.0 | $1,263.0 | | | | ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000035_b66a88a305b4bdc0c889ff2e2c761680c6fcc6d4d0bdb8643afcf19c77ef91a3.png) Logo ## Glossary ## Carrying Value ## Distributable Earnings (Loss) Carrying Value represents the cost of loans held for investment, net of unamortized purchase discounts, deferred loan fees and origination costs and cost -recovery proceeds, and excludes the impact of current expected credit losses. Distributable Earnings (Loss) is a non-GAAP financial measure that helps the Company evaluate its financial performance excluding the effects of certain transactions and GAAP adjustments that it believes are not necessarily indicative of its current loan origination portfolio and operations. To maintain the Company's REIT status, the Company is generally required to annually distribute to its stockholders substantially all of its taxable income. The Company believes the disclosure of Distributable Earnings (Loss) provides useful information to investors regarding the Company's ability to pay dividends, which the Company believes is one of the principal reasons investors invest in the Company. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Distributable Earnings (Loss) is defined as net income (loss) computed in accordance with GAAP, excluding non-cash equity compensation expense, the incentive fees the Company pays to its Manager, depreciation and amortization (to the extent that any of the Company's target investments are structured as debt and the Company forecloses on any properties underlying such debt), any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss), one-time events pursuant to changes in GAAP and certain non-cash charges after discussions between the Company's manager and the Company's independent directors and after approval by a majority of the Company's independent directors. Loan balances that are deemed to be uncollectible are written-off as a realized loss and are included in Distributable Earnings (Loss). Distributable Earnings (Loss) is aligned with the calculation of 'Core Earnings,' which is defined in the Management Agreement and is used to calculate the incentive fees the Company pays to its Manager.  Distributable Earnings excluding realized gains/losses is Distributable Earnings (Loss) further adjusted to exclude realized gains/losses. ## End Notes ## Q2 2026 Company Results and Highlights; page 3 As of June 30, 2026 unless otherwise noted. Past performance is not indicative of future results. Due to rounding, numbers may not add up to the totals provided. 1. Distributable Earnings (Loss) and Distributable Earnings excluding realized gains (losses) are non-GAAP financial measures. See page 22 for Distributable Earnings (Loss) and Distributable Earnings excluding realized gains (losses) definitions and page 20 for the Reconciliation of Net Income (Loss) to Non-GAAP Distributable Earnings (Loss) and Distributable Earnings excluding realized gains (losses). 2. Book value per common share excluding CECL reserve is calculated as (i) total stockholders' equity of $489 million plus CECL reserve of $139 million divided by (ii) total outstanding common shares of 55,481,113 as of June 30, 2026. 3. Based on outstanding principal balance of loans held for investment. 4. As of June 30, 2026, includes $18 million of cash and approximately $88 million of available financing proceeds under our secured funding agreements. 5. Source: Bloomberg stock price for ACRE as of July 30, 2026. ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000036_955b8a7804a252254859d17e3ab21c6fb2728ea738418e1c80d00a24d9c0134d.png) Logo ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000037_db46811e82ea7fd638822d8bf40b96a2d13b42d40ac845e6a4bbe9b0b78a457c.png) Icon ![Image](data/playground/uploads/b97e63846d9cb851-artifacts/b97e63846d9cb851.docling_artifacts/image_000038_463ab866b5562cd97779c08d12013e938e73fe2fd1d3142e669ec2481066a5e0.png) Logo