Ares Commercial Real Estate Corporation · NYSE:ACRE
Ares Commercial Real Estate — Q3 2025 Earnings Presentation
23 slides from Ares Commercial Real Estate's earnings presentation, Nov 7, 2025
Slide 1: Third Quarter 2025 Earnings Presentation
Exhibit 99.2 Third Quarter 2025 Earnings Presentation
Slide 2: Disclaimer
Disclaimer Statements included herein may constitute “forward-looking statementsˮ 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 co
Slide 3: 3Q 2025 Company Results and Highlights
3Q 2025 Company Results and Highlights • GAAP net income of $5 million or $0.08 per diluted common per share • Distributable Earnings of $6 million or $0.10 per diluted common per share(1) Earnings and • Distributable Earnings of $7 million or $0.13 per diluted common share excluding realized losses
Slide 4: Portfolio Overview
Portfolio Overview Portfolio Highlights $1.4 billion total portfolio comprised of loans held for investment and REO properties • Risk rated 1-3 loans (ex. office): Approximately 80% collateralized by multifamily, industrial and self storage properties • Risk rated 1-3 office loans: Repayments drove
Slide 5: Ares Management is a Global Leader
Ares Management is a Global Leader With approximately $596 billion in assets under management, Ares Management Corporation is a global alternative investment manager operating an integrated platform across five business groups Global Footprint(3) Profile Founded 1997 AUM $596 billion Employees 4,270
Slide 6: Ares Real Estate is a Global Investment Manager and Operator
Ares Real Estate is a Global Investment Manager and Operator $109 billion+ 350+ 390+ Real Estate Investment Operating 3Q 2025 AUM Professionals(1) Professionals(2) 3,600+ ~740M 100K+ | 615M+ Global Real Estate Global Portfolio Residential Units | Logistics Square Feet Properties Square Feet Comprehe
Slide 7: Office Loans
Office Loans Office loans measured by outstanding principal balance decreased 6% QoQ and 26% YoY Reduced Office Loans YoY as Measured by Outstanding Principal Balance ($ in millions) Note: As of September 30, 2025 unless otherwise noted. Past performance is not indicative of future results. 7
Slide 8: Balance Sheet and Capital Position Provides Flexibility
Balance Sheet and Capital Position Provides Flexibility Balance sheet flexibility supports ability to resolve risk rated 4 and 5 loans and increase investment activity Reduction in Borrowings Repayments on Loans ($ in millions) Held for Investment $162 million in 3Q 2025 $498 million YTD Available C
Slide 9: Trends in CECL Reserve
Trends in CECL Reserve Change in CECL Reserve 3Q 2025 ($ in millions) 2Q 2025 CECL Reversal of CECL Net Decrease in 3Q 2025 CECL Reserve Reserve Due to CECL Reserve on Reserve Realized Losses Existing Loans Note: As of September 30, 2025 unless otherwise noted. Past performance is not indicative of
Slide 10: CECL Reserve
CECL Reserve CECL Reserve by CECL Reserve by Risk Rating Property Type $117 million Total CECL Reserve(1) 9% CECL Reserve as a Percent of Loans Held for Investment(2) 95% 90% CECL reserve relates to office and residential / CECL reserve relates to risk rated 4 and 5 loans condo loans Note: As of Sep
Slide 11: CECL Reserve for Risk Rated and Loans
CECL Reserve for Risk Rated 4 and 5 Loans Risk Rated 4 and 5 Loans Risk Rated 4 and 5 Loans CECL Reserve by CECL Reserve as a Property Type Percent of Loan Balance(3) $112 million CECL Reserve(1) for Risk Rated 4 and 5 Loans 25% CECL Reserve as a Percent of Risk Rated 4 and 5 Loan Balance(2) Note: A
Slide 12: Summary of Real Estate Owned ("REO")
Summary of Real Estate Owned ("REO") Mixed-Use Office Quarter Converted to REO: 3Q 2023 3Q 2024 Location: Florida North Carolina Square Footage: 816 thousand 607 thousand Carrying Value:(1) $78 million $56 million Income Yield:(2) 9% 9% Note: As of September 30, 2025, unless otherwise noted. Past pe
Slide 13: Appendix
Appendix
Slide 14: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Carrying Unleveraged Maturity Payment # Loan Type Location Date Commitment Principal Value Interest Rate SOFR Floor Effective Yield Date Terms(1) Office Loans: 1 Senior IL Nov 2020 $164.8 $164.8 $141.4 (
Slide 15: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Carrying Unleveraged Maturity Payment # Loan Type Location Date Commitment Principal Value Interest Rate SOFR Floor Effective Yield Date Terms(1) Multifamily Loans: 8 Senior NY May 2022 $132.2 $132.2 $13
Slide 16: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Carrying Unleveraged Maturity Payment # Loan Type Location Date Commitment Principal Value Interest Rate SOFR Floor Effective Yield Date Terms(1) Residential/Condominium Loans: 18 Senior NY Mar 2022 $152
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets As of ($ in thousands, except share and per share data) 9/30/2025 12/31/2024 ASSETS Cash and cash equivalents $ 84,869 $ 63,799 Restricted cash ($2,961 and $2,495 related to consolidated VIEs, respectively) 39,007 2,495 Loans held for investment ($154,688 and $551,955 rel
Slide 18: Consolidated Statements of Operations
Consolidated Statements of Operations For the Three Months Ended ($ in thousands, except share and per share data) 9/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 Revenue: Interest income $ 23,261 $ 23,117 $ 27,480 $ 33,492 $ 39,345 Interest expense (14,790) (16,101) (18,189) (22,282) (27,401) Ne
Slide 19: Reconciliation of Net Income (Loss) to Non-GAAP Distributable Earnings (Loss)
Reconciliation of Net Income (Loss) to Non-GAAP Distributable Earnings (Loss) For the Three Months Ended ($ in thousands, except per share data) 9/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 Net income (loss) attributable to common stockholders $ 4,653 $ (11,035) $ 9,345 $ (10,664) $ (5,880) St
Slide 20: Diverse Sources of Financing Supports Portfolio
Diverse Sources of Financing Supports Portfolio Diversified financing sources totaling $1.2 billion with $407 million of undrawn capacity(1,2) ($ in millions) Total Outstanding Non Spread Based Financing Sources Commitments Principal Pricing Range Mark to Credit Mark to Market Secured Funding Agreem
Slide 21: Glossary
Glossary Distributable Earnings (Loss) 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 origin
Slide 22: Endnotes
Endnotes 3Q 2025 Company Results and Highlights; page 3 Note: As of September 30, 2025 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 r
Slide 23: Ares Commercial Real Estate Corporation
QO ARES COMMERCIAL REAL ESTATE CORPORATION
Ares Commercial Real Estate — Q3 2025 Earnings Presentation on 6ix