{ "chunks": [ { "id": "7287c0ed-3563-4591-934a-161de4678832", "grounding": { "box": { "bottom": 0.13019679486751556, "left": 0.033531010150909424, "right": 0.30649030208587646, "top": 0.07546624541282654 }, "page": 0 }, "markdown": "\n\nPortfolio Overview", "type": "text" }, { "id": "7168bd8a-3ff2-4803-9de3-ba909720aa7b", "grounding": { "box": { "bottom": 0.32334738969802856, "left": 0.031885623931884766, "right": 0.815832793712616, "top": 0.1326385885477066 }, "page": 0 }, "markdown": "\n\n## Portfolio Highlights\n\n$1.9 billion total portfolio comprised of loans held for investment and two REO properties\u00b9\n\n* Risk rated 1-3 loans (ex. office): Represents 63% of the total portfolio including a majority of loans collateralized by multifamily and industrial properties\u00b9\n* Risk rated 1-3 office loans: Continued to perform with stable to improving leasing trends and continued sponsor support\n* Risk rated 4 and 5 loans: The two largest loans represent 93% of the four risk rated 4 and 5 loans\u00b9\n* REO: Both properties have income yields of 10% or greater\u00b2", "type": "text" }, { "id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "grounding": { "box": { "bottom": 0.6317341327667236, "left": 0.031170666217803955, "right": 0.9656045436859131, "top": 0.36468881368637085 }, "page": 0 }, "markdown": "\n\n\n\n\n\n\n
63%\u00b914%\u00b916%\u00b97%\u00b9100%\u00b9 (purple bar chart)
ACRE's Total Portfolio\n($ in millions)Risk Rated 1-3 Loans\n(ex. Office)Risk Rated 1-3 Office LoansRisk Rated 4 and 5 LoansREO\u00b3Total
Number of Loans or REO Properties2954240
Carrying Amount\u00b9$1,189$264$296$130$1,879
", "type": "table" }, { "id": "99bf595f-2af2-4e68-823d-66b9ab33b40a", "grounding": { "box": { "bottom": 0.9031609296798706, "left": 0.03228113055229187, "right": 0.9662104845046997, "top": 0.644436240196228 }, "page": 0 }, "markdown": "\n\nProgress on Largest Risk Rated 4 and 5 Loans\n\nChicago Office (Risk Rated 5)\nBrooklyn Residential/Condo (Risk Rated 4)\n\n<::visual content::>\n\n* Carrying Value: $136 million\n* Q2 2026 Update: Occupancy is over 90% with a weighted average\n lease term over seven years. The borrower continues to engage in a\n potential sale\n\n<::visual content::>\n\n* Carrying Value: $140 million\n* Q2 2026 Update: Construction on the building is substantially\n complete. Pre-sales activity is progressing", "type": "text" }, { "id": "cdb14bff-b66e-4883-8b7a-b06057cfa37b", "grounding": { "box": { "bottom": 0.9442034363746643, "left": 0.032354891300201416, "right": 0.08668836951255798, "top": 0.9073454737663269 }, "page": 0 }, "markdown": "\n\n<::ARES logo with a stylized circular graphic::>", "type": "figure" }, { "id": "913d74ba-05ef-4939-b78d-f0e0824bfa37", "grounding": { "box": { "bottom": 0.9811745882034302, "left": 0.09149503707885742, "right": 0.956805944442749, "top": 0.9214553833007812 }, "page": 0 }, "markdown": "\n\nAs 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.", "type": "text" }, { "id": "a3d98e54-1554-4e7b-9a4d-0c022367676a", "grounding": { "box": { "bottom": 0.9382247924804688, "left": 0.9539190530776978, "right": 0.9658013582229614, "top": 0.9170904159545898 }, "page": 0 }, "markdown": "\n\n4", "type": "marginalia" } ], "markdown": "\n\nPortfolio Overview\n\n\n\n## Portfolio Highlights\n\n$1.9 billion total portfolio comprised of loans held for investment and two REO properties\u00b9\n\n* Risk rated 1-3 loans (ex. office): Represents 63% of the total portfolio including a majority of loans collateralized by multifamily and industrial properties\u00b9\n* Risk rated 1-3 office loans: Continued to perform with stable to improving leasing trends and continued sponsor support\n* Risk rated 4 and 5 loans: The two largest loans represent 93% of the four risk rated 4 and 5 loans\u00b9\n* REO: Both properties have income yields of 10% or greater\u00b2\n\n\n\n\n\n\n\n\n
63%\u00b914%\u00b916%\u00b97%\u00b9100%\u00b9 (purple bar chart)
ACRE's Total Portfolio\n($ in millions)Risk Rated 1-3 Loans\n(ex. Office)Risk Rated 1-3 Office LoansRisk Rated 4 and 5 LoansREO\u00b3Total
Number of Loans or REO Properties2954240
Carrying Amount\u00b9$1,189$264$296$130$1,879
\n\n\n\nProgress on Largest Risk Rated 4 and 5 Loans\n\nChicago Office (Risk Rated 5)\nBrooklyn Residential/Condo (Risk Rated 4)\n\n<::visual content::>\n\n* Carrying Value: $136 million\n* Q2 2026 Update: Occupancy is over 90% with a weighted average\n lease term over seven years. The borrower continues to engage in a\n potential sale\n\n<::visual content::>\n\n* Carrying Value: $140 million\n* Q2 2026 Update: Construction on the building is substantially\n complete. Pre-sales activity is progressing\n\n\n\n<::ARES logo with a stylized circular graphic::>\n\n\n\nAs 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.\n\n\n\n4", "metadata": { "credit_usage": 3.0, "duration_ms": 19011, "filename": "p4.pdf", "job_id": "cmsgu5y3s00dcdn01pjebuj4e", "org_id": "dlh8mka28ml4", "page_count": 1, "version": "dpt-2-20260410", "failed_pages": [] }, "splits": [ { "chunks": [ "7287c0ed-3563-4591-934a-161de4678832", "7168bd8a-3ff2-4803-9de3-ba909720aa7b", "6c3588d4-56fc-4e66-98ae-e831111cb59c", "99bf595f-2af2-4e68-823d-66b9ab33b40a", "cdb14bff-b66e-4883-8b7a-b06057cfa37b", "913d74ba-05ef-4939-b78d-f0e0824bfa37", "a3d98e54-1554-4e7b-9a4d-0c022367676a" ], "class_": "full", "identifier": "full", "markdown": "\n\nPortfolio Overview\n\n\n\n## Portfolio Highlights\n\n$1.9 billion total portfolio comprised of loans held for investment and two REO properties\u00b9\n\n* Risk rated 1-3 loans (ex. office): Represents 63% of the total portfolio including a majority of loans collateralized by multifamily and industrial properties\u00b9\n* Risk rated 1-3 office loans: Continued to perform with stable to improving leasing trends and continued sponsor support\n* Risk rated 4 and 5 loans: The two largest loans represent 93% of the four risk rated 4 and 5 loans\u00b9\n* REO: Both properties have income yields of 10% or greater\u00b2\n\n\n\n\n\n\n\n\n
63%\u00b914%\u00b916%\u00b97%\u00b9100%\u00b9 (purple bar chart)
ACRE's Total Portfolio\n($ in millions)Risk Rated 1-3 Loans\n(ex. Office)Risk Rated 1-3 Office LoansRisk Rated 4 and 5 LoansREO\u00b3Total
Number of Loans or REO Properties2954240
Carrying Amount\u00b9$1,189$264$296$130$1,879
\n\n\n\nProgress on Largest Risk Rated 4 and 5 Loans\n\nChicago Office (Risk Rated 5)\nBrooklyn Residential/Condo (Risk Rated 4)\n\n<::visual content::>\n\n* Carrying Value: $136 million\n* Q2 2026 Update: Occupancy is over 90% with a weighted average\n lease term over seven years. The borrower continues to engage in a\n potential sale\n\n<::visual content::>\n\n* Carrying Value: $140 million\n* Q2 2026 Update: Construction on the building is substantially\n complete. Pre-sales activity is progressing\n\n\n\n<::ARES logo with a stylized circular graphic::>\n\n\n\nAs 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.\n\n\n\n4", "pages": [ 0 ] } ], "grounding": { "7287c0ed-3563-4591-934a-161de4678832": { "box": { "bottom": 0.13019679486751556, "left": 0.033531010150909424, "right": 0.30649030208587646, "top": 0.07546624541282654 }, "page": 0, "type": "chunkText", "confidence": 0.999, "low_confidence_spans": [] }, "7168bd8a-3ff2-4803-9de3-ba909720aa7b": { "box": { "bottom": 0.32334738969802856, "left": 0.031885623931884766, "right": 0.815832793712616, "top": 0.1326385885477066 }, "page": 0, "type": "chunkText", "confidence": 0.954, "low_confidence_spans": [] }, "6c3588d4-56fc-4e66-98ae-e831111cb59c": { "box": { "bottom": 0.6317341327667236, "left": 0.031170666217803955, "right": 0.9656045436859131, "top": 0.36468881368637085 }, "page": 0, "type": "chunkTable", "confidence": 0.995, "low_confidence_spans": [] }, "0-1": { "box": { "bottom": 0.6242776205488596, "left": 0.03700984199523205, "right": 0.9619368669232635, "top": 0.36824494580767553 }, "page": 0, "type": "table", "confidence": null, "low_confidence_spans": [] }, "0-2": { "box": { "bottom": 0.472142141639649, "left": 0.037170045172872146, "right": 0.2228059645913025, "top": 0.36861664297675145 }, "page": 0, "type": "tableCell", "confidence": 0.979, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 0, "colspan": 1, "row": 0, "rowspan": 1 } }, "0-3": { "box": { "bottom": 0.47215026852390496, "left": 0.22277146542221174, "right": 0.36939216442683526, "top": 0.3685429132017413 }, "page": 0, "type": "tableCell", "confidence": 0.967, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 1, "colspan": 1, "row": 0, "rowspan": 1 } }, "0-4": { "box": { "bottom": 0.47215844886761416, "left": 0.36916695323905285, "right": 0.5172311569221586, "top": 0.368468570794916 }, "page": 0, "type": "tableCell", "confidence": 0.99, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 2, "colspan": 1, "row": 0, "rowspan": 1 } }, "0-5": { "box": { "bottom": 0.4721666184790715, "left": 0.5164907190330941, "right": 0.6641951001431159, "top": 0.36839466841590784 }, "page": 0, "type": "tableCell", "confidence": 0.976, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 3, "colspan": 1, "row": 0, "rowspan": 1 } }, "0-6": { "box": { "bottom": 0.4721748170597927, "left": 0.6636212025127609, "right": 0.8115728134016492, "top": 0.36832055796824376 }, "page": 0, "type": "tableCell", "confidence": 0.994, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 4, "colspan": 1, "row": 0, "rowspan": 1 } }, "0-7": { "box": { "bottom": 0.47218318266103665, "left": 0.8112734074753898, "right": 0.9619368669232635, "top": 0.36824494580767553 }, "page": 0, "type": "tableCell", "confidence": 0.972, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 5, "colspan": 1, "row": 0, "rowspan": 1 } }, "0-8": { "box": { "bottom": 0.5320324098858509, "left": 0.03710694616598359, "right": 0.2228259226163089, "top": 0.47213183396377995 }, "page": 0, "type": "tableCell", "confidence": 0.991, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 0, "colspan": 1, "row": 1, "rowspan": 1 } }, "0-9": { "box": { "bottom": 0.5320399063382475, "left": 0.2228059645913025, "right": 0.36916695323905285, "top": 0.472142141639649 }, "page": 0, "type": "tableCell", "confidence": 0.969, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 1, "colspan": 1, "row": 1, "rowspan": 1 } }, "0-a": { "box": { "bottom": 0.5320474445994193, "left": 0.36903677120297934, "right": 0.5164907190330941, "top": 0.47215026852390496 }, "page": 0, "type": "tableCell", "confidence": 1.0, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 2, "colspan": 1, "row": 1, "rowspan": 1 } }, "0-b": { "box": { "bottom": 0.5320549931483187, "left": 0.5160630583741939, "right": 0.6636212025127609, "top": 0.47215844886761416 }, "page": 0, "type": "tableCell", "confidence": 1.0, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 3, "colspan": 1, "row": 1, "rowspan": 1 } }, "0-c": { "box": { "bottom": 0.532062571630453, "left": 0.6632899974396406, "right": 0.8112734074753898, "top": 0.4721666184790715 }, "page": 0, "type": "tableCell", "confidence": 0.999, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 4, "colspan": 1, "row": 1, "rowspan": 1 } }, "0-d": { "box": { "bottom": 0.5320703049603821, "left": 0.8111007544827666, "right": 0.9619335658019299, "top": 0.4721748170597927 }, "page": 0, "type": "tableCell", "confidence": 1.0, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 5, "colspan": 1, "row": 1, "rowspan": 1 } }, "0-e": { "box": { "bottom": 0.5778572872563545, "left": 0.03705866849181466, "right": 0.2228411934453644, "top": 0.5320228877917004 }, "page": 0, "type": "tableCell", "confidence": 1.0, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 0, "colspan": 1, "row": 2, "rowspan": 1 } }, "0-f": { "box": { "bottom": 0.5778660647746199, "left": 0.2228259226163089, "right": 0.36903677120297934, "top": 0.5320324098858509 }, "page": 0, "type": "tableCell", "confidence": 1.0, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 1, "colspan": 1, "row": 2, "rowspan": 1 } }, "0-g": { "box": { "bottom": 0.5778748845105675, "left": 0.36893715893567586, "right": 0.5160630583741939, "top": 0.5320399063382475 }, "page": 0, "type": "tableCell", "confidence": 0.99, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 2, "colspan": 1, "row": 2, "rowspan": 1 } }, "0-h": { "box": { "bottom": 0.5778837344121445, "left": 0.5157358097217724, "right": 0.6632899974396406, "top": 0.5320474445994193 }, "page": 0, "type": "tableCell", "confidence": 0.99, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 3, "colspan": 1, "row": 2, "rowspan": 1 } }, "0-i": { "box": { "bottom": 0.5778926222451828, "left": 0.6630365473888566, "right": 0.8111007544827666, "top": 0.5320549931483187 }, "page": 0, "type": "tableCell", "confidence": 0.99, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 4, "colspan": 1, "row": 2, "rowspan": 1 } }, "0-j": { "box": { "bottom": 0.5779016920919329, "left": 0.810968629051659, "right": 0.9619316637621897, "top": 0.532062571630453 }, "page": 0, "type": "tableCell", "confidence": 1.0, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 5, "colspan": 1, "row": 2, "rowspan": 1 } }, "0-k": { "box": { "bottom": 0.624207832157359, "left": 0.03700984199523205, "right": 0.22285663944955314, "top": 0.5778461253498589 }, "page": 0, "type": "tableCell", "confidence": 1.0, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 0, "colspan": 1, "row": 3, "rowspan": 1 } }, "0-l": { "box": { "bottom": 0.6242216165938903, "left": 0.2228411934453644, "right": 0.36893715893567586, "top": 0.5778572872563545 }, "page": 0, "type": "tableCell", "confidence": 1.0, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 1, "colspan": 1, "row": 3, "rowspan": 1 } }, "0-m": { "box": { "bottom": 0.624235456610332, "left": 0.3688363959265916, "right": 0.5157358097217724, "top": 0.5778660647746199 }, "page": 0, "type": "tableCell", "confidence": 0.994, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 2, "colspan": 1, "row": 3, "rowspan": 1 } }, "0-n": { "box": { "bottom": 0.6242493728309032, "left": 0.515404754031676, "right": 0.6630365473888566, "top": 0.5778748845105675 }, "page": 0, "type": "tableCell", "confidence": 1.0, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 3, "colspan": 1, "row": 3, "rowspan": 1 } }, "0-o": { "box": { "bottom": 0.6242633532092393, "left": 0.6627801280963385, "right": 0.810968629051659, "top": 0.5778837344121445 }, "page": 0, "type": "tableCell", "confidence": 0.967, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 4, "colspan": 1, "row": 3, "rowspan": 1 } }, "0-p": { "box": { "bottom": 0.6242776205488596, "left": 0.8108349448698349, "right": 0.961930208138404, "top": 0.5778926222451828 }, "page": 0, "type": "tableCell", "confidence": 1.0, "position": { "chunk_id": "6c3588d4-56fc-4e66-98ae-e831111cb59c", "col": 5, "colspan": 1, "row": 3, "rowspan": 1 } }, "99bf595f-2af2-4e68-823d-66b9ab33b40a": { "box": { "bottom": 0.9031609296798706, "left": 0.03228113055229187, "right": 0.9662104845046997, "top": 0.644436240196228 }, "page": 0, "type": "chunkText", "confidence": 0.98, "low_confidence_spans": [] }, "cdb14bff-b66e-4883-8b7a-b06057cfa37b": { "box": { "bottom": 0.9442034363746643, "left": 0.032354891300201416, "right": 0.08668836951255798, "top": 0.9073454737663269 }, "page": 0, "type": "chunkFigure", "confidence": null, "low_confidence_spans": [] }, "913d74ba-05ef-4939-b78d-f0e0824bfa37": { "box": { "bottom": 0.9811745882034302, "left": 0.09149503707885742, "right": 0.956805944442749, "top": 0.9214553833007812 }, "page": 0, "type": "chunkText", "confidence": 0.997, "low_confidence_spans": [] }, "a3d98e54-1554-4e7b-9a4d-0c022367676a": { "box": { "bottom": 0.9382247924804688, "left": 0.9539190530776978, "right": 0.9658013582229614, "top": 0.9170904159545898 }, "page": 0, "type": "chunkMarginalia", "confidence": 0.998, "low_confidence_spans": [] } } }