Ares Commercial Real Estate Corporation · NYSE:ACRE
Ares Commercial Real Estate — Q2 2025 Earnings Presentation
23 slides from Ares Commercial Real Estate's earnings presentation, Aug 5, 2025
Slide 1: Second Quarter 2025 Earnings Presentation
0 42 65 156 110 2 3 93 109 127 127 127 GENERAL PALETTE 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Secondary Solutions BUSINESS SECTOR PALETTE 192 212 229 Strategic Initiatives Second Quarter 2025 Earnings Presentation Exhibit 99.2
Slide 2: Disclaimer
0 42 65 156 110 2 3 93 109 127 127 127 GENERAL PALETTE 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Secondary Solutions BUSINESS SECTOR PALETTE 192 212 229 Strategic Initiatives Disclaimer Statements included herein may constitute “forward-looking statementsˮ within the
Slide 3: 2Q 2025 Company Results and Highlights
0 42 65 155 112 42 4 94 109 127 127 127 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Strategi c Initiativ es BUSINE SS SECTOR PALETT E GENER AL PALETT E 2Q 2025 Company Results and Highlights Note: As of June 30, 2025, unless otherwise noted. Past performance is not indi
Slide 4: Portfolio Overview
0 42 65 155 112 42 4 94 109 127 127 127 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Strategi c Initiativ es BUSINE SS SECTOR PALETT E GENER AL PALETT E Portfolio Overview Portfolio Highlights 26 loans and two REO properties • Risk rated 1-3 loans (ex. office): Primarily
Slide 5: Ares Management is a Global Leader
0 42 65 155 112 42 4 94 109 127 127 127 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Strategi c Initiativ es BUSINE SS SECTOR PALETT E GENER AL PALETT E Ares Management is a Global Leader With approximately $572 billion in assets under management, Ares Management Corpora
Slide 6: Ares Real Estate is a Global Investment Manager and Operator
0 42 65 155 112 42 4 94 109 127 127 127 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Strategi c Initiativ es BUSINE SS SECTOR PALETT E GENER AL PALETT E Ares Real Estate is a Global Investment Manager and Operator $108 billion+ Real Estate 2Q 2025 AUM 350+ Investment Pro
Slide 7: Office Loans
0 42 65 155 112 42 4 94 109 127 127 127 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Strategi c Initiativ es BUSINE SS SECTOR PALETT E GENER AL PALETT E Office Loans Office loans measured by outstanding principal balance decreased 10% QoQ and 30% YoY Note: As of June 30,
Slide 8: Balance Sheet and Capital Position Provides Flexibility
0 42 65 155 112 42 4 94 109 127 127 127 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Strategi c Initiativ es BUSINE SS SECTOR PALETT E GENER AL PALETT E Balance Sheet and Capital Position Provides Flexibility Successful in de-levering the balance sheet and maintaining hi
Slide 9: Trends in CECL Reserves
0 42 65 155 112 42 4 94 109 127 127 127 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Strategi c Initiativ es BUSINE SS SECTOR PALETT E GENER AL PALETT E Trends in CECL Reserves Note: As of June 30, 2025 unless otherwise noted. Past performance is not indicative of future
Slide 10: CECL Reserves
0 42 65 155 112 42 4 94 109 127 127 127 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Strategi c Initiativ es BUSINE SS SECTOR PALETT E GENER AL PALETT E CECL Reserves CECL Reserves by Risk Rating $119 million Total CECL Reserves(1) 9% CECL Reserves as a Percent of Loans
Slide 11: CECL Reserves for Risk Rated 4 and 5 Loans
0 42 65 155 112 42 4 94 109 127 127 127 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Strategi c Initiativ es BUSINE SS SECTOR PALETT E GENER AL PALETT E CECL Reserves for Risk Rated 4 and 5 Loans Risk Rated 4 and 5 Loans CECL Reserves by Property Type $112 million CECL R
Slide 12: Summary of Real Estate Owned ("REO")
0 42 65 155 112 42 4 94 109 127 127 127 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Strategi c Initiativ es BUSINE SS SECTOR PALETT E GENER AL PALETT E Summary of Real Estate Owned ("REO") Note: As of June 30, 2025, unless otherwise noted. Past performance may not be in
Slide 13: Appendix
0 42 65 156 110 2 3 93 109 127 127 127 GENERAL PALETTE 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Secondary Solutions BUSINESS SECTOR PALETTE 192 212 229 Strategic Initiatives Appendix
Slide 14: Loans Held for Investment Portfolio Details
0 42 65 156 110 2 3 93 109 127 127 127 GENERAL PALETTE 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Secondary Solutions BUSINESS SECTOR PALETTE 192 212 229 Strategic Initiatives Loans Held for Investment Portfolio Details ($ in millions) # Loan Type Location Origination
Slide 15: Loans Held for Investment Portfolio Details
0 42 65 156 110 2 3 93 109 127 127 127 GENERAL PALETTE 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Secondary Solutions BUSINESS SECTOR PALETTE 192 212 229 Strategic Initiatives Loans Held for Investment Portfolio Details ($ in millions) # Loan Type Location Origination
Slide 16: Loans Held for Investment Portfolio Details (continued)
0 42 65 156 110 2 3 93 109 127 127 127 GENERAL PALETTE 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Secondary Solutions BUSINESS SECTOR PALETTE 192 212 229 Strategic Initiatives ($ in millions) # Loan Type Location Origination Date Current Loan Commitment Outstanding Pri
Slide 17: Consolidated Balance Sheets
0 42 65 155 112 42 4 94 109 127 127 127 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Strategi c Initiativ es BUSINE SS SECTOR PALETT E GENER AL PALETT E As of ($ in thousands, except share and per share data) 6/30/2025 12/31/2024 ASSETS Cash and cash equivalents $ 89,985
Slide 18: Consolidated Statements of Operations
0 42 65 155 112 42 4 94 109 127 127 127 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Strategi c Initiativ es BUSINE SS SECTOR PALETT E GENER AL PALETT E Consolidated Statements of Operations For the Three Months Ended ($ in thousands, except share and per share data) 6/3
Slide 19: Reconciliation of Net Income (Loss) to Non-GAAP Distributable Earnings (Loss)
0 42 65 155 112 42 4 94 109 127 127 127 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Strategi c Initiativ es BUSINE SS SECTOR PALETT E GENER AL PALETT E Reconciliation of Net Income (Loss) to Non-GAAP Distributable Earnings (Loss) For the Three Months Ended ($ in thousan
Slide 20: Diverse Sources of Financing Supports Portfolio
0 42 65 156 110 2 3 93 109 127 127 127 GENERAL PALETTE 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Secondary Solutions BUSINESS SECTOR PALETTE 192 212 229 Strategic Initiatives Diverse Sources of Financing Supports Portfolio ($ in millions) Financing Sources Total Commi
Slide 21: Glossary
0 42 65 156 110 2 3 93 109 127 127 127 GENERAL PALETTE 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Secondary Solutions BUSINESS SECTOR PALETTE 192 212 229 Strategic Initiatives Glossary Distributable Earnings (Loss) Distributable Earnings (Loss) is a non-GAAP financial
Slide 22: Endnotes
0 42 65 155 112 42 4 94 109 127 127 127 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Strategi c Initiativ es BUSINE SS SECTOR PALETT E GENER AL PALETT E Endnotes 2Q 2025 Company Results and Highlights; page 3 Note: As of June 30, 2025 unless otherwise noted. Past perform
Slide 23: Strategic Initiatives
0 42 65 156 110 2 3 93 109 127 127 127 GENERAL PALETTE 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Secondary Solutions BUSINESS SECTOR PALETTE 192 212 229 Strategic Initiatives
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