Acres Commercial Realty Corp. · NYSE:ACR
Acres Commercial Realty — Q2 2025 Earnings Presentation
22 slides from Acres Commercial Realty's earnings presentation, Jul 31, 2025
Slide 1: Second Quarter 2025 Earnings Presentation
SECOND QUARTER 2025 EARNINGS PRESENTATION July 30, 2025
Slide 2: Disclaimer: Forward-Looking Statements
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, a
Slide 3: Disclaimer: Forward-Looking Statements (continued)
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 for
Slide 4: Highlights
HIGHLIGHTS Manager is focused on delivering shareholder value Earnings and capital gains can be retained through EAD1 growth and share repurchases through tax assets to increase book value Percentage of Multifamily-focused Per Share-Diluted GAAP Net Loss / EAD Percentage of CRE loan CRE in Loan Port
Slide 5: Second Quarter 2025 Results
SECOND QUARTER 2025 RESULTS Financial Results Book Value CRE Loan Activity & CRE Portfolio Capitalization, Liquidity & NOL ($0.10) $27.93 $1.4B Comprising 48 loans with a weighted average LTV of 80% $2.2B GAAP net loss per share-diluted Book value CRE loan portfolio at par value Total capacity at Ju
Slide 6: Balance Sheet Overview
BALANCE SHEET OVERVIEW 2Q25 Balance Sheet Overview Summary of Changes to Book Value per Share 1,2 Total Assets ($B) $1.8 $0.38 $0.10 $0.05 Total Liquidity ($M) $64.7 $0.90 $28.50 CRE Whole Loans, at par ($B) $1.4 $27.93 WA Spread 3.65% CECL Reserve – General ($M) $25.6 Per BV Share / Basis Points $3
Slide 7: CRE Loan Portfolio Overview
CRE LOAN PORTFOLIO OVERVIEW CRE Loan Summary 1 Balance by Region 1,3 Loans held for investment, at amortized cost $1,392.0 Pacific Northeast CECL Reserves ($30.3) 10.9% 11.9% CRE whole loans, floating-rate WA 1M SOFR + 3.65% Mountain Mid Atlantic WA 1M SOFR Floor2 1.17% 17.4% 9.9% WA CRE loan portfo
Slide 8: CRE Loan Portfolio Maturity Profile
CRE LOAN PORTFOLIO MATURITY PROFILE 2.0 years 62% Fully extended weighted average loan maturity 1,2 of the par value of the portfolio has interest rate caps or debt service reserves in place at June 30, 2025 3,4,5 Fully Extended Loan and Interest Rate Cap Maturities ($ in millions at par) $1,000 $80
Slide 9: CRE Loan Risk Ratings and CECL Reserves
CRE LOAN RISK RATINGS AND CECL RESERVES 68% ofperforming ACR’s loans have a risk rating of 1, 2 or 3 that are in line with or near underwritten expectations 1 All but six of ACR’s 48 loans are current on contractual payments at June 30, 2025 W.A. Risk Rating by Collateral Type, $ 1Q25 W.A. Risk Rati
Slide 10: Investments in Real Estate Properties
INVESTMENTS IN REAL ESTATE PROPERTIES $176.8 million of net investments in real estate and properties held for sale 1,2 Select Investment Highlights Student Housing $40.0M 3 Hotel $32.2M 3 • Existing structure and development of adjacent lot • 388-key hotel next to a convention center • Equity inves
Slide 11: Capitalization Overview
CAPITALIZATION OVERVIEW Total Capitalization ($ in Millions) $1,744.7 Capitalization Corporate WACC 1 6.84% $ in Millions Maximum W. Avg. Leverage Amount $ Avail. Capacity Coupon Ratio Total Asset Specific Financing $1,109 Term Reinvestment Financing 2 $939.9 $885.7 $51.0 SOFR + 1.75% 2.0x WA Asset
Slide 12: Leverage and Liquidity Trend
LEVERAGE AND LIQUIDITY TREND Leverage Ratios $ in millions Total Liquidity ($ in millions) 3.3x $87.4 3.0x 3.0x 3.0x $79.7 $76.9 2.9x 2.9x $21.4 $9.6 $20.2 $64.7 $21.9 $70.1 1.1x 1.1x $66.0 $56.7 $42.7 3Q24 4Q24 1Q25 2Q25 3Q24 4Q24 1Q25 2Q25 Recourse Debt Leverage Ratio Total Leverage Ratio Unrestri
Slide 13: Illustrative Earnings Profile
ILLUSTRATIVE EARNINGS PROFILE The chart below is meant to display the illustrative earnings potential of the Company. It is not meant to represent performance guidance for any period 1. Projected Maximum CRE Loan Portfolio Size & GAAP EPS & EAD per Share Projected maximum CRE loan portfolio size $1,
Slide 14: Appendix
APPENDIX ACRESREIT.COM 14
Slide 15: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) June 30, 2025 Dec. 31, 2024 Assets (unaudited) Cash and cash equivalents $ 42,747 $ 56,713 Restricted cash 2,103 890 Accrued interest receivable 19,093 14,655 CRE loans 1,391,998 1,487,392 Less: allowance for credit losses (
Slide 16: Consolidated Statements of Operations
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except share and per share data) For the Three Months Ended For the Six Months Ended Jun. 30, 2025 Jun. 30, 2024 Jun. 30, 2025 Jun. 30, 2024 Revenues Interest income $ 28,831 $ 41,066 $ 57,557 $ 83,677 Interest expense 20,264 30,311 43,
Slide 17: Earnings Available for Distribution
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
Slide 18: CECL Trend Analysis Chart
CECL TREND ANALYSIS CHART Since 3Q23, limited market liquidity and volatility in the commercial real estate sector have caused an increase in the CECL reserves to 2.18% at 2Q25 3.00% 100% 2.50% 80% 79% 79% 79% 77% 80% 76% 77% 75% % of CRE Loan Portfolio(1) 2.00% CECL Reserve % 60% 1.50% 40% 1.00% 24
Slide 19: Benchmark Sensitivity Analysis Trend
BENCHMARK SENSITIVITY ANALYSIS TREND The recent increases to benchmark rates on net interest income have returned our match-financed investment portfolio to having a direct correlation to the rise or fall in interest rates Quarterly Net Interest Income per Share Sensitivity to Changes in SOFR June 3
Slide 20: Key Definitions
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 ind
Slide 21: Other Disclosures
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 underwri
Slide 22: Contact Information
ACRES Commercial Realty Corp. is a real estate investment trust that is primarily focused on originating, holding and managing commercial real CONTACT estate mortgage loans and equity investments in commercial real estate property through direct ownership and joint ventures. INFORMATION Additional i
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