Ares Commercial Real Estate Corporation · NYSE:ACRE
Ares Commercial Real Estate — Q4 2025 Earnings Presentation
23 slides from Ares Commercial Real Estate's earnings presentation, Feb 10, 2026
Slide 1: Fourth Quarter and Full Year 2025 Earnings Presentation
Fourth Quarter and Full Year 2025 Earnings Presentation Exhibit 99.2
Slide 2: Disclaimer
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 co
Slide 3: Q4 2025 and Full Year 2025 Company Results and Highlights
Q4 2025 and Full Year 2025 Company Results and Highlights Note: As of December 31, 2025, unless otherwise noted. Past performance is not indicative of future results. Due to rounding, numbers presented may not add up to the totals provided. See relevant endnotes on page 22. Earnings and Results • Q4
Slide 4: Portfolio Overview
Portfolio Overview Note: As of December 31, 2025 unless otherwise noted. Past performance may not be indicative of future results. Numbers may not sum due to rounding. 1) Income yield is calculated as the annualized property level net operating income for the three months ended December 31, 2025 (ex
Slide 5: Ares Management is a Global Leader
Founded 1997 AUM $623 billion Employees 4,260+ Investment Professionals 1,600+ Global Offices 55+1 Direct Institutional Relationships 2,800+ Listing: NYSE – Market Capitalization $58 billion2 Ares Management is a Global Leader With approximately $623 billion in assets under management, Ares Manageme
Slide 6: Ares Real Estate is a Global Investment Manager and Operator
Ares Real Estate is a Global Investment Manager and Operator The performance and awards noted herein relate only to selected funds/strategies and may not be representative of any given client’s experience and should not be viewed as indicative of Ares’ past performance or its funds’ future performan
Slide 7: Office Loans Progress
Office loans measured by outstanding principal balance decreased 10% QoQ and 30% YoY Office Loans Progress Note: As of December 31, 2025 unless otherwise noted. Past performance is not indicative of future results. Reduced Office Loans QoQ and YoY as Measured by Outstanding Principal Balance ($ in m
Slide 8: Balance Sheet and Capital Position Provides Flexibility
Balance Sheet and Capital Position Provides Flexibility Maintained balance sheet flexibility which supports the ability to resolve risk rated 4 and 5 loans and increase investment activity Note: Past performance is not indicative of future results. Due to rounding, numbers presented may not add up t
Slide 9: Trends in CECL Reserves
Trends in CECL Reserves Note: As of December 31, 2025 unless otherwise noted. Past performance is not indicative of future results. Numbers may not sum due to rounding. Change in CECL Reserve Q4 2025 ($ in millions) Q3 2025 CECL Reserve Net Increase in CECL Reserve on Existing Loans Impact from New
Slide 10: CECL Reserve
CECL reserve related to risk rated 4 and 5 loans: 92% CECL Reserve Note: As of December 31, 2025 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 CECL Reserve includes reserve on both the
Slide 11: CECL Reserve for Risk Rated 4 and 5 Loans
CECL Reserve for Risk Rated 4 and 5 Loans Note: As of December 31, 2025 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 CECL Reserve includes reserve on both the outstanding balances and
Slide 12: Summary of Real Estate Owned (REO)
Summary of Real Estate Owned ("REO") Note: As of December 31, 2025, unless otherwise noted. Past performance may not be indicative of future results. Numbers may not sum due to rounding. 1) Carrying value is net of accumulated depreciation and amortization of $7 million for the Florida mixed-use pro
Slide 13: Appendix
MARES Appendix
Slide 14: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details Note: As of December 31, 2025 unless otherwise noted. Past performance is not indicative of future results. Due to rounding, numbers presented may not add up to the totals provided. 1) I/O = interest only, P/I = principal and interest. 2) The Illinois loan
Slide 15: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details Note: As of December 31, 2025 unless otherwise noted. Past performance is not indicative of future results. Due to rounding, numbers presented may not add up to the totals provided. 1) I/O = interest only, P/I = principal and interest. 2) In December 2025,
Slide 16: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details Note: As of December 31, 2025 unless otherwise noted. Past performance is not indicative of future results. Due to rounding, numbers presented may not add up to the totals provided. 1) I/O = interest only, P/I = principal and interest. 2) The New York loan
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets As of ($ in thousands, except share and per share data) 12/31/2025 12/31/2024 ASSETS Cash and cash equivalents $ 29,289 $ 63,799 Restricted cash ($1,108 and $2,495 related to consolidated VIEs, respectively) 37,868 2,495 Loans held for investment ($138,950 and $551,955 re
Slide 18: Consolidated Statements of Operations
Consolidated Statements of Operations 1) There is no assurance dividends will continue at these levels or at all. For the Three Months Ended ($ in thousands, except share and per share data) 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 Revenue: Interest income $ 23,732 $ 23,261 $ 23,117 $ 27,
Slide 19: Reconciliation of Net Income (Loss) to Non-GAAP Distributable Earnings (Loss)
Reconciliation of Net Income (Loss) to Non-GAAP Distributable Earnings (Loss) Note: Due to rounding, numbers presented may not add up to the totals provided. For the Three Months Ended ($ in thousands, except per share data) 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 Net income (loss) attri
Slide 20: Diverse Sources of Financing Supports Portfolio
Diverse Sources of Financing Supports Portfolio Note: As of December 31, 2025 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) For the Wells Fargo, Citibank and Morgan Stanley facilities, total
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: End Notes
End Notes 22 Q4 2025 and Full Year 2025 Company Results and Highlights; page 3 Note: As of December 31, 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 Distributabl
Slide 23: Slide 23
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