Acres Commercial Realty Corp. · NYSE:ACR
Acres Commercial Realty — Q2 2026 Earnings Presentation
24 slides from Acres Commercial Realty's earnings presentation, Jul 30, 2026
Slide 1: Second Quarter 2026 Earnings Presentation
SECOND QUARTER 2026 EARNINGS PRESENTATION July 29, 2026
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 through EAD1 growth Percentage of Multifamily-focused Per Share-Diluted GAAP Net Loss / EAD Transaction Costs / Accelerated Equity Comp. CRE in Loan Portfolio Expense Related to the Internalization 81% ($1.87) / ($0.74) $5.1M / $4.0M Tota
Slide 5: Second Quarter 2026 Results
SECOND QUARTER 2026 RESULTS Financial Results Merger Transaction Items CRE Loan Activity & CRE Portfolio Capitalization, Liquidity & NOL ($1.87) $5.1M $2.1B Comprising 57 loans with a weighted average LTV of 77% $2.7B GAAP net loss per share-diluted Merger and internalization costs CRE loan portfoli
Slide 6: Balance Sheet Overview
BALANCE SHEET OVERVIEW 2Q26 Balance Sheet Overview Summary of Changes to Book Value per Share 1 Total Assets ($B) $2.4 $29.98 Total Liquidity ($M) $82.7 $1.77 $0.05 $1.50 CRE Whole Loans, at par ($B) $2.1 $26.76 WA Spread 3.28% CECL Reserve – General ($M) $21.1 Per BV Share1 / Basis Points $2.98/0.9
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 $2,128.9 Pacific Northeast CECL Reserves ($21.1) 9.1% 13.3% CRE whole loans, floating-rate WA 1M SOFR + 3.28% Mountain Mid Atlantic WA 1M SOFR Floor2 2.22% 13.5% 11.1% WA CRE loan portfo
Slide 8: CRE Loan Portfolio Maturity Profile
CRE LOAN PORTFOLIO MATURITY PROFILE 3.1 years 74% Fully extended weighted average loan maturity 1,2 of the par value of the portfolio has interest rate caps or debt service reserves in place at June 30, 2026 3,4,5 Fully Extended Loan and Interest Rate Cap Maturities ($ in millions at par) $1,000 $80
Slide 9: CRE Loan Risk Ratings and CECL Reserves
CRE LOAN RISK RATINGS AND CECL RESERVES 86% ofperforming ACR’s loans have a risk rating of 1, 2 or 3 that are in line with or near underwritten expectations 1,2 52 of ACR’s 57 loans, or 94%, are current on contractual payments at June 30, 2026 W.A. Risk Rating by Collateral Type, $ at par 1Q26 W.A.
Slide 10: Investments in Real Estate Properties
INVESTMENTS IN REAL ESTATE PROPERTIES $104.6 million of net investments in real estate and properties held for sale 1,2 Select Investment Highlights Hotel $39.8M 3 Hotel $28.3M 3 • 279-key hotel next to a convention center • Equity via lending activities in the northeast region • 388-key hotel next
Slide 11: Capitalization Overview
CAPITALIZATION OVERVIEW Total Capitalization ($ in Millions) $2,333.5 Capitalization Corporate WACC 1 5.92% $ in Millions W. Avg. Leverage Capacity Amount3 $ Avail. Coupon Ratio Total Asset Specific Financing $1,581.9 Term Reinvestment Financing 2 $645.0 $622.8 $19.7 SOFR + 1.75% 1.1x WA Asset Speci
Slide 12: Leverage and Liquidity Trend
LEVERAGE AND LIQUIDITY TREND Leverage Ratios Total Liquidity ($ in millions) $ in millions $107.9 3.4x $24.1 3.2x $86.8 $82.7 $0.6 2.8x 2.8x 2.7x 2.7x $64.5 $38.2 $41.6 $23.6 1.8x 1.6x $83.8 $48.0 $40.9 $41.1 3Q25 4Q25 1Q26 2Q26 Reinvestment Cash at CRE Securitiztions 3Q25 4Q25 1Q26 2Q26 CRE Term an
Slide 13: Appendix
APPENDIX ACRESREIT.COM 13
Slide 14: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) Jun. 30, 2026 December 31, 2025 Assets (unaudited) Cash and cash equivalents $ 41,098 $ 83,768 Restricted cash 849 2,190 Accrued interest receivable 33,636 27,259 CRE loans 2,128,879 1,830,367 Less: allowance for credit loss
Slide 15: 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, 2026 Jun. 30, 2025 Jun. 30, 2026 Jun. 30, 2025 Revenues Interest income $ 38,400 $ 28,831 $ 72,760 $ 57,557 Interest expense 27,881 20,264 52,
Slide 16: 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 17: CECL Trend Analysis Chart
CECL TREND ANALYSIS CHART Since 3Q24, market liquidity and volatility in the commercial real estate sector have caused a decrease in the CECL reserves to 0.99% at 2Q26 3.00% 100% 82% 81% 81% 2.50% 79% 77% 80% 77% 75% 75% % of CRE Loan Portfolio(1) 2.00% CECL Reserve % 60% 1.50% 40% 1.00% 23% 23% 25%
Slide 18: Benchmark Sensitivity Analysis Trend
BENCHMARK SENSITIVITY ANALYSIS TREND At June 30, 2026, the CRE loan portfolio is 99% floating rate loans that are indexed to one-month term SOFR with a weighted average floor of 2.22% Quarterly Net Interest Income per Share Sensitivity to Changes in SOFR June 30, 2025 June 30, 2026 Change to a posit
Slide 19: 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 20: Merger and Internalization Update
MERGER AND INTERNALIZATION UPDATE ACRESREIT.COM 20
Slide 21: Internalization and Acquisition of ACRES Capital Corp.
INTERNALIZATION AND ACQUISITION OF ACRES CAPITAL CORP. A Special Independent Committee of the ACR Board of Directors has unanimously approved the Transaction 99% of votes cast on the proposal to issue shares as part of the internalization transaction were cast in favor of the proposal Transaction Ov
Slide 22: Hypothetical Estimated EAD Profile Post-Transaction
HYPOTHETICAL ESTIMATED EAD PROFILE POST-TRANSACTION The chart below is meant to display the illustrative earnings potential of the Company post-Transaction. It is not meant to represent performance guidance for any period.(1) ACR Internal Internal Internal Externally Case 1 Case 2 Case 3 Managed Pro
Slide 23: 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 24: Contact Information
ACRES Commercial Realty Corp. is a real estate investment trust that is primarily focused on originating, holding and managing commercial real CONTACT INFORMATION estate mortgage loans and equity investments in commercial real estate property through direct ownership and joint ventures. Additional i
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