Ares Commercial Real Estate Corporation · NYSE:ACRE
Ares Commercial Real Estate — Q1 2026 Earnings Presentation
24 slides from Ares Commercial Real Estate's earnings presentation, May 7, 2026
Slide 1: First Quarter 2026 Earnings Presentation
First Quarter 2026 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: Q1 2026 Company Results and Highlights
Q1 2026 Company Results and Highlights Earnings and Results • GAAP net income (loss) of $(9.6) million or $(0.17) per diluted common share • Distributable Earnings of $3.2 million or $0.06 per diluted common share1 • Distributable Earnings of $6.5 million or $0.12 per diluted common share, excluding
Slide 4: Portfolio Overview
Portfolio Overview Portfolio Highlights $1.8 billion total portfolio comprised of loans held for investment, REO properties and a loan held for sale1 • Risk rated 1-3 loans (ex. office): Represent 59% of the total portfolio including a majority of loans collateralized by multifamily and industrial p
Slide 5: Ares Management is a Global Leader
Ares Management is a Global Leader With approximately $644 billion in assets under management, Ares Management Corporation is a global alternative investment manager operating an integrated platform across five business groups Global Footprint3 Overview Founded 1997 AUM $644 billion Employees 4,400+
Slide 6: Ares Real Estate is a Global Investment Manager and Operator
Ares Real Estate is a Global Investment Manager and Operator ~$117 billion ~360 ~360 Real Estate Q1 2026 AUM Investment Professionals1 Operating Professionals2 ~4,000 ~770 million 105 thousand+ | 645 million+ Global Real Estate Properties Global Portfolio Square Feet Residential Units3 | Logistics S
Slide 7: Office Loans Progress
Office Loans Progress Office loans measured by outstanding principal balance was flat QoQ and decreased 24% YoY Office Loans QoQ and YoY as Measured by Outstanding Principal Balance ($ in millions) $830 $780 $585 $447 $447 Q1 2023 Q1 2024 Q1 2025 Q4 2025 Q1 2026 As of March 31, 2026, unless otherwis
Slide 8: Balance Sheet and Capital Position Provides Flexibility
Balance Sheet and Capital Position Provides Flexibility Maintained balance sheet flexibility which supports the ability to resolve risk rated 4 and 5 loans and continued investment activity Repayments on Loans Held for Investment Continued to Maintain Balance Sheet Flexibility ($ in millions) $94 mi
Slide 9: Trends in CECL Reserves
Trends in CECL Reserves Change in CECL Reserve Q1 2026 ($ in millions) $11 $2 $138 $127 $(2) Q4 2025 CECL Reserve Reversal of CECL Reserve Net Increase in CECL Reserve Impact from Q1 2026 CECL Reserve Due to Exits on Existing Loans New Loan Commitments As of March 31, 2026, unless otherwise noted. P
Slide 10: CECL Reserve $138 million
CECL Reserve CECL Reserve by Risk Rating CECL Reserve by Property Type $138 million 6% 11% Total CECL Reserve1 Risk Rated 1-3 Loans Office CECL reserve related to CECL reserve related to office and residential/ Residential/ risk rated 4 and 5 loans: Risk Rated 51% 4 Loans Condo condo loans: 54% 94%
Slide 11: CECL Reserve for Risk Rated 4 and 5 Loans $129 million
CECL Reserve for Risk Rated 4 and 5 Loans Risk Rated 4 and 5 Loans CECL Reserve by Risk Rated 4 and 5 Loans CECL Reserve as a Percent Property Type of Loan Balance3 $129 million 7% 69% CECL Reserve1 for Risk Rated 4 and 5 Loans 41% 37% 56% 27% 35% CECL Reserve as a Percent of Risk Rated 4 and 5 Loan
Slide 12: Summary of Real Estate Owned ("REO")
Summary of Real Estate Owned ("REO") Mixed-Use Office Quarter Converted to REO Q3 2023 Q3 2024 Location Florida North Carolina Square Footage 816 thousand 554 thousand Carrying Amount1 $77 million $53 million Income Yield2 9% 11% Classification Held for Investment Held for Sale As of March 31, 2026,
Slide 13: Appendix
@ ARES Appendix
Slide 14: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Carrying Interest SOFR Unleveraged Maturity Payment # Loan Type Location Date Commitment Principal Value Rate Floor Effective Yield Date Terms1 Office Loans: 1 Senior IL Nov 2020 $167.6 $167.6 $138.0 2 1
Slide 15: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Carrying Interest SOFR Unleveraged Maturity Payment # Loan Type Location Date Commitment Principal Value Rate Floor Effective Yield Date Terms1 Multifamily Loans: 12 Senior NY May 2022 $132.2 $132.2 $131
Slide 16: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Carrying Interest SOFR Unleveraged Maturity Payment # Loan Type Location Date Commitment Principal Value Rate Floor Effective Yield Date Terms1 Residential/Condominium Loans: 25 Senior NY Mar 2022 $179.8
Slide 17: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Carrying Interest SOFR Unleveraged Maturity Payment # Loan Type Location Date Commitment Principal Value Rate Floor Effective Yield Date Terms1 Self Storage Loans: 28 Senior Diversified Dec 2025 $72.5 $7
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets As of ($ in thousands, except share and per share data) 3/31/2026 12/31/2025 ASSETS Cash and cash equivalents $ 86,163 $ 29,289 Restricted cash ($1,108 related to consolidated VIEs as of December 31, 2025) 48,169 37,868 Loans held for investment ($138,950 related to conso
Slide 19: Consolidated Statements of Operations
Consolidated Statements of Operations For the Three Months Ended ($ in thousands, except share and per share data) 3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025 Revenue: Interest income $ 24,906 $ 23,732 $ 23,261 $ 23,117 $ 27,480 Interest expense (17,361) (16,078) (14,790) (16,101) (18,189) Ne
Slide 20: 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) 3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025 Net income (loss) attributable to common stockholders $ (9,605) $ (3,865) $ 4,653 $ (11,035) $ 9,345 Sto
Slide 21: Diverse Sources of Financing Supports Portfolio
Diverse Sources of Financing Supports Portfolio Diversified financing sources totaling $1.5 billion with $268 million of undrawn capacity1,2 ($ in millions) Total Outstanding Pricing Mark Non Spread Based Financing Sources Commitments1 Principal Range to Credit Mark to Market Secured Funding Agreeme
Slide 22: Glossary
Carrying Value Carrying Value represents the cost of loans held for investment, net of unamortized purchase discounts, deferred loan fees and origination costs and cost-recovery proceeds, and excludes the impact of current expected credit losses. Distributable Earnings (Loss) Distributable Earnings
Slide 23: End Notes
End Notes Q1 2026 Company Results and Highlights; page 3 As of March 31, 2026 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 realized g
Slide 24: Slide 24
Ares Commercial Real Estate — Q1 2026 Earnings Presentation on 6ix