ACRES Commercial Realty posts $56.3M Q3 2026 loss
ACRES employees and directors are reported to own 45% of ACR shares.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
ACRES Commercial Realty Corp. reported third-quarter 2026 total revenue of $24.222 million, compared with $21.037 million a year earlier, and net interest income of $12.787 million, versus $8.371 million. It recorded a GAAP net loss allocable to common shares of $56.326 million, or $5.16 per diluted share, compared with net income allocable to common shares of $9.782 million, or $1.34 per diluted share, in the prior-year quarter. Earnings Available for Distribution (EAD), a non-GAAP measure, was a loss of $28.840 million, or $2.64 per diluted share, versus income of $7.419 million, or $1.01 per diluted share.
The company completed the acquisition of its manager on August 6, 2026, and is now internally managed. It reported $38.282 million in merger and internalization costs for the quarter. Its CRE loan portfolio was $2,147.3 million at par as of September 30, 2026. ACRES identified principal investing, investment management and insurance as its three business lines.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointTotal revenue: $24.222 million in 3Q26 versus $21.037 million in 3Q25.
- Moderate pointNet interest income: $12.787 million in 3Q26 versus $8.371 million in 3Q25.
Negative
- Major pointCommon-share results: $56.326 million GAAP loss in 3Q26, versus $9.782 million income.
- Moderate pointEAD: $28.840 million loss in 3Q26 versus $7.419 million income in 3Q25.
Filing Explained
The presentation attributes a reduction of eight dollars and sixty-two cents per share in GAAP book value to the completed internalization.
This 8-K furnishes third-quarter results and an accompanying presentation; it reports the manager acquisition as completed and links a reduction in GAAP book value per common share to that transaction.
The presentation reports that employees and directors own
It gives a
8-K Event Classification
Key Figures
Key Terms
Earnings Available for Distribution financial
Current Expected Credit Losses financial
Secured Overnight Financing Rate financial
LTV financial
internalization technical
Earnings Snapshot
FAQ
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 4, 2026, ACRES Commercial Realty Corp. (the “Company”) issued a press release and detailed presentation regarding its operating results for the quarter ended September 30, 2026. A copy of this press release is furnished with this report as Exhibit 99.1 and a copy of the earnings presentation is furnished with this report as Exhibit 99.2 as well as made available on the Company’s website at www.acresreit.com.
Item 7.01 Regulation FD Disclosure.
The information provided in Item 2.02 above is incorporated by reference into this Item 7.01.
The information set forth in Items 2.02 and 7.01 in this Current Report, and all of the exhibits hereto, is to be considered “furnished” pursuant to Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information set forth in Items 2.02 and 7.01 in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Exhibit 99.1
ACRES COMMERCIAL REALTY CORP.
REPORTS RESULTS FOR
THIRD QUARTER 2026
Uniondale, NY, November 4, 2026 – ACRES Commercial Realty Corp. (NYSE: ACR) (“ACR” or the “Company”), a real estate investment trust that is primarily focused on originating, underwriting and managing commercial real estate mortgage loans and that manages third-party capital and provides insurance solutions, today reported results for the quarter ended September 30, 2026. ACR’s GAAP net loss allocable to common shares was $56.3 million or $(5.16) per share-diluted, for the quarter ended September 30, 2026.
"In the third quarter, ACRES completed the merger transaction with its manager and is now internally managed. Going forward the Company will have three lines of business that management expects to drive results in the future: Principal Investing, Investment Management and Insurance," said ACRES Commercial Realty Corp. Chairman Andrew Fentress. "As an internally managed company, the employees and directors own over 45% of the common shares and are directly aligned with shareholders."
ACR issued a full, detailed presentation of its results for the quarter ended September 30, 2026 that can be viewed at www.acresreit.com.
Earnings Call Details
ACR will host a live conference call on November 5, 2026 at 10:00 a.m. Eastern Time to discuss its third quarter 2026 operating results. The conference call can be accessed by dialing 1-833-419-0865 (U.S. domestic) or 1-785-838-9333 (International), Conference ID ACRES or from the investor relations section of the Company’s website at www.acresreit.com.
For those unable to listen to the live conference call, a replay will be available on the Company’s website and telephonically through November 19, 2026 by dialing 1-844-512-2921 (U.S. domestic) or 1-412-317-6671 (International), with the passcode 11162460.
About ACRES Commercial Realty Corp.
ACRES is a public commercial mortgage REIT that is primarily focused on originating, underwriting and managing mortgage loans. ACRES invests nationwide in the middle market with a focus on multifamily, student housing, hospitality, industrial and office properties. In addition, ACRES manages third-party capital and provides insurance solutions through its investment management business. For more information, please visit the Company’s website at www.acresreit.com or contact investor relations at IR@acresreit.com.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “continue,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “look forward” or other similar words or terms. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. Factors that can affect future results are discussed in the documents filed by the Company from time to time with the Securities and Exchange Commission, including, without limitation, factors impacting whether we will be able to maintain our sources of liquidity and whether we will be able to identify sufficient suitable investments to increase our originations. The Company undertakes no obligation to update or revise any forward-looking statement to reflect new or changing information or events after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.
Third Quarter 2026 Earnings Presentation November 4, 2026 Exhibit 99.2
Disclaimer ACRESREIT.COM 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, assumptions and expectations. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to ACR or are within its control. If a change occurs, its business, financial condition, liquidity and results of operations may vary materially from those expressed in the forward-looking statements. You should not place undue reliance on these forward-looking statements, which reflect ACR’s view only as of the date of this presentation. ACR uses words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “seek,” “estimate,” “target,” and variations of these words and similar expressions to identify forward-looking statements. Forward-looking statements are subject to various risks and uncertainties that could cause actual results to vary from its forward-looking statements, including, but not limited to: Changes in the industry, interest rates, the debt securities markets, real estate markets or the general economy; Increased rates of default and/or decreased recovery rates on its investments; The performance and financial condition of its borrowers; ACR's ability to successfully integrate the operations of ACRES Capital, LLC and ACRES Capital Corp. following the completion of the internalization and acquisition (the “Merger”) to achieve the expected cost savings or other benefits therefrom; ACR’s ability to successfully operate as an internally-managed company following the Internalization, including our ability to retain key personnel formerly employed by our Manager and to realize the anticipated benefits of internal management in a timely manner, or at all; The cost and availability of its financings, which depend in part on its asset quality, the nature of its relationships with its lenders and other capital providers, its business prospects and outlook and general market conditions; The availability and attractiveness of terms of additional debt repurchases; Availability, terms and deployment of short-term and long-term capital; Availability of, and ability to retain, qualified personnel; Changes in its business strategy; Availability of investment opportunities in commercial real estate-related and commercial finance assets; The degree and nature of its competition; The resolution of its non-performing and sub-performing assets; The Company’s ability to comply with financial covenants in its debt instruments; The adequacy of its cash reserves and working capital; The timing of cash flows, if any, from its investments; Unanticipated increases in financial and other costs, including a rise in interest rates; Its ability to maintain compliance with over-collateralization and interest coverage tests in certain financing arrangements; Environmental and/or safety requirements; Its ability to satisfy complex rules in order for ACR to qualify as a real estate investment trust (“REIT”), for federal income tax purposes and qualify for its exemption under the Investment Company Act of 1940, as amended, and its ability and the ability of its subsidiaries to operate effectively within the limitations imposed by these rules; Legislative and regulatory changes (including changes to laws governing the taxation of REITs or the exemptions from registration as an investment company); and Other factors discussed under Item 1A. Risk Factors in its annual report on Form 10-K for the year ended December 31, 2025 and those factors that may be contained in any subsequent filing ACR makes with the Securities and Exchange Commission.
Disclaimer ACRESREIT.COM 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 forward-looking statements. The Company undertakes no obligation, and specifically disclaims any obligation, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Past Performance Past performance is not indicative of future results. There is no guarantee that any investment strategy referenced herein will work under all market conditions. Prior to making any investment decision, you should evaluate your ability to invest for the long-term, especially during periods of downturns in the market. You alone assume the responsibility of evaluating the merits and risks associated with any potential investment or investment strategy referenced herein. Notes on Presentation This presentation contains information regarding financial results that is calculated and presented on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States (“GAAP”), which management believes is relevant to assessing ACR’s financial performance. Please refer to page 26 for the reconciliation of Net Income (Loss), a GAAP financial measure, to Earnings Available for Distribution (“EAD”), a non-GAAP financial measure. Unless otherwise indicated, information included in this presentation is at or for the period ended September 30, 2026. Definitions Refer to page 27 for a description of certain terms not otherwise defined or footnoted, including EAD, Benchmark Rate, Book Value, and other key terms. No Offer or Sale of Securities This presentation is for informational purposes only and does not constitute an offer to sell or the solicitation of any offer to buy any securities of ACR or any other entity. Any offering of securities would be made pursuant to separate documentation and any such securities would not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
ACR Is Now Internally Managed ACRESREIT.COM On August 6, ACRES Commercial Realty completed the acquisition of its manager and is now an internally managed mortgage REIT WHAT ACR SHAREHOLDERS OWN TODAY – MULTIPLE BUSINESS LINES ACRES Commercial Realty (ACR) CRE PRINCIPAL INVESTING $2.3B AUM(1) Existing platform 56 loans 5 properties Stable credit INVESTMENT MANAGEMENT $2.5B AUM 13+ year track record New products: Funds, SMA, Special Situations INSURANCE Growing Insurance company Brokerage / captive platform 42 employees in Boston, New York, Philadelphia, Miami and Dallas who own, along with the directors, 45% of the company 1 Assets Under Management or “AUM”
WHY INTERNALIZE NOW? ACRESREIT.COM ACRES Management Sees a Compelling Investment Opportunity Sound Fundamentals Positive Supply / Demand dynamics across ACRES’ target markets Property types Multifamily - Office Student - Hospitality Retail - 55+ Living Industrial - Storage Large and Growing Opportunity Set Significant maturities in the CRE markets over next three years Assets trading below replacement cost Platforms exiting the market/winding down CRE Portfolios being marketed at a discount Strong Financing Markets Financing Markets Open Available sources Warehouse lines CRE CLO Investment-Grade Buyers + +
ACRES MISSION: EAD growth + stability ACRESREIT.COM ACRES MANAGEMENT MISSION $2–$3 EAD per share run rate1 FIVE DRIVERS OF EAD GROWTH 1 Optimize the balance sheet Increase net interest margin Reduce leverage, Reduce Investment Risk, Increase Liquidity 10-12% Target NIM 2 Increase fee-paying AUM ACRES Mortgage Fund and SMAs – not limited by the balance sheet 3rd Party Capital Raise 3 Origination fee revenue Fees earned on new loan originations from investment management Stays with the Manager 4 Insurance revenue Growing insurance brokerage / captive company – not limited by the balance sheet 5 Cost savings From internalizing management Shared platform costs Potential for Growth 1 The Company does not provide a reconciliation of the forward-looking Earnings Available for Distribution (“EAD”) figures presented on this slide to the most directly comparable GAAP measure, GAAP net income (loss) allocable to common shares, because the Company cannot do so without unreasonable effort. The reconciliation depends on items that are inherently uncertain and outside the Company’s control, including future credit loss provisions, gains or losses on real estate and other investments, unrealized gains or losses on derivatives, stock-based compensation, and transaction and internalization costs. These items are not currently estimable, but they could be significant to GAAP results. Accordingly, the Company cannot provide a forward-looking GAAP measure or a quantitative reconciliation. The illustrative figures rest on the assumptions stated on this slide, do not constitute guidance or a forecast, and may differ materially from actual results.
Third Quarter 2026 Results ACRESREIT.COM FINANCIAL RESULTS Per share, 3Q26 ($5.16) GAAP net loss per share–diluted ($2.64) EAD(1) per share–diluted $16.81 Book value per share BALANCE SHEET AND NET INTEREST INCOME $2.1B CRE loan portfolio(2) at par value $12.8M Net Interest Income 2.7X GAAP Leverage 96% Of the par value of the CRE loan portfolio is current on payments $2.3B AUM INVESTMENT MANAGEMENT $2.5B AUM Investor Base Diversified and Institutional Partners 100% Third-Party Capital(4) LIQUIDITY, CAPITAL & TAX ASSETS $96.2M Total liquidity at September 30, 2026 $122.7M Total Tax Assets(3) 10.5 Years Weighted Average Remaining Maturity of Borrowings 1 Refer to page 26 for the reconciliation of Net Income (Loss), a GAAP financial measure, to EAD, a non-GAAP financial measure 2 CRE loan portfolio represents the Company’s CRE loans held in the CRE Lending Segment 3 Tax assets include net operating losses and capital losses across all tax filing entities 4 Does not include the Company’s investment in the Consolidated Fund
Book Value Per Share: Pre- and Post-Close ACRESREIT.COM GAAP book value per share, before and after the internalization(1) Per share adjustments are calculated on the share count used in the book value calculation at September 30, 2026 or 13,396,930 shares vs. the income statement has weighted average shares of 10,923,342 for the three months ended September 30, 2026. GAAP net loss on the weighted average share count was ($5.16 per share), other items include non-cash adjustments added back for other comprehensive loss and equity compensation expense in addition to reconciling net loss items. −$8.62 per share from the transaction
LEADERSHIP OVERVIEW ACRESREIT.COM Highly experienced leadership team with significant ownership in ACR ACR MANAGEMENT TEAM Andrew Fentress Chairman ACR Board Chairman Board member for AMF 30+ years of experience Mark Fogel President ACR Board member Member of Investment Committee Board member for AMF 30+ years of experience Marty Reasoner Managing Director of Origination Head of Originations 15 years of experience Kyle Brengel Chief Operating Officer Previously worked at Napier Park Global Capital and Ares Management 14 years of experience Jaclyn Jesberger Chief Legal Officer, Chief Compliance Officer Previous experience at Arbor Realty Trust, Credit Suisse and Cadwalader 25 years of experience Richard Persaud Managing Director of Finance & Accounting, ACR Chief Financial Officer, ACRES Mortgage Fund Previously served as a senior manager at Ernst & Young 18 years of experience Eldron Blackwell Chief Financial Officer Previously served as Vice President and Chief Accounting Officer of ACR Previously served as a senior manager at Grant Thornton 25 years of experience Michael Pierro Managing Director and Chief Credit Officer Experience in originations, securitization, CLO management, loan workouts, risk management and credit evaluation 32 years of experience Greg Hayes Managing Director of Asset Management Experience in asset management, construction and structured loan portfolio management 16 years of commercial real estate experience Kevin Aliaga Managing Director of Asset Management Experience in asset management and workout strategies 18 years of commercial real estate experience ACR BOARD OF DIRECTORS Andrew Fentress Chairman Mark Fogel Director David J. Bryant Director Karen Edwards Director Gary Ickowicz Director Steven J. Kessler Director Murray S. Levin Director P. Sherrill Neff Lead Independent Director Dawanna Williams Director
Key Takeaways ACRESREIT.COM The new ACRES is positioned to create EAD for shareholders EAD TARGET + STABLE CREDIT + LONG TERM LIABILITIES $2–$31 EAD per share target THREE SOURCES OF REVENUE Balance Sheet NIM Principal Investing Investment Management $2.5B of fee-generating assets under management Insurance A growing insurance brokerage / captive company ALIGNED, PROVEN MANAGEMENT 45% of ACR shares owned by ACRES employees and directors 13+ years asset management track record 86% of assets rated 1–3: credit is stable Past performance is not indicative of future results. Read important disclosures on pages 2 and 3. 1 Forward-looking target based on management’s current expectations; actual results may differ materially. EAD is a non-GAAP measure. See Forward-Looking Statements on pages 2–3. 10.5 years weighted average life of liabilities
ACRESREIT.COM BUSINESS LINES
MERGER COMPLETED – BUSINESS LINE OVERVIEW CRE PRINCIPAL INVESTING – BALANCE SHEET PHILOSOPHY OF THE BALANCE SHEET: CORE PRINCIPLES Highly liquid High-quality assets Conservative liability structure Prudent management of capital Optimize leverage for NIM / ROE OVERARCHING PHILOSOPHY Adjust to a capital preservation philosophy
MERGER COMPLETED – BUSINESS LINE OVERVIEW INVESTMENT MANAGEMENT ACRES HAS A 13+ YEAR TRACK RECORD OF MANAGING CAPITAL ON BEHALF OF INSTITUTIONS AMF ACRES Mortgage Fund 7+ year track record Evergreen structure 3rd Party fee paying equity Origination fee source New Fund Launch of new vehicle Closed-end fund Raising $750M 3rd Party fee paying equity Origination fee source SMA Separately managed accounts Construction Lending Bridge Lending Asset management Opportunistic Portfolio and asset purchases Portfolio purchases Asset purchases Rated Special Servicer
Investment Management – PERFORMANCE & ASSET MANAGEMENT SUMMARY ACRESREIT.COM $8.5B originated since 2014, managed and serviced in-house Information as of September 30, 2026. Includes loans originated by ACRES Capital LLC and ACRES Commercial Realty Corp. Transaction figures based on loan commitments. *‘A’ markets, sponsors and assets are ACRES’ internal underwriting designations, not third-party ratings. There is no assurance the strategy’s objective will be achieved; distributions are not guaranteed. 1ACRES manages and services $4.8B of gross loan commitments and REO properties in this strategy. This is not calculated on the same basis as Regulatory Assets Under Management in the Firm’s Form ADV; it includes ACRES’ proprietary balance sheet capital and the managed assets of ACRES Commercial Realty Corp. 2Commercial special servicer rating assigned to ACRES Capital Servicing, LLC by Fitch Ratings on 7/29/26. Fitch is compensated by ACRES. A servicer rating is not a rating of the Fund or a recommendation to invest and may be revised or withdrawn at any time. Past performance is not indicative of future results. Read important disclosures on pages 2 and 3. TRACK RECORD SINCE 2014 $8.5B Loan commitments across 262 transactions $3.8B Realized across 147 transactions $4.8B Current AUM1, single strategy since inception CRE CLO PROGRAM 7 Securitizations, $5.0B issued, 100% of equity retained 5 of 7 Called and paid in full to date $2.0B Outstanding and performing ASSET MANAGEMENT Fitch-rated special servicer (CLLSS3-)2, servicing CRE securitizations since 2020 Retains control of modifications and workouts inside its own securitizations Regular review of every loan against its business plan Risk ratings, watch list and written action plans where warranted Quarterly third-party portfolio valuation, with separate revaluation after any credit event Modifications, extensions and enforcement handled in-house by the team that underwrote the loan INVESTMENT STRATEGY National first mortgages of $15M–150M on ‘A’ class assets with ‘A’ sponsors in ‘A’ markets, in simple structures that seek to deliver stable income
MERGER COMPLETED – BUSINESS LINE OVERVIEW INSURANCE INSURANCE PROVIDES OUR SPONSORS WITH A VALUABLE SERVICE AND A BUSINESS TO COMPOUND CAPITAL Lower-cost insurance Provides lower-cost insurance to our borrowers Commission share ACRES shares in commissions Premium income Ability to earn premium Compounding capital Compounds dollars over time INSURANCE COMPANY Three-year track record FRONTING CARRIER Investment grade partner LEAD BROKER EPIC Insurance
ACRESREIT.COM 3Q26 Financial results
CRE principal investing - Portfolio Overview ACRESREIT.COM CRE LOAN SUMMARY¹ Loans held for investment, at amortized cost $2,139.4 CECL reserves ($29.4) CRE whole loans, floating-rate WA 1M SOFR + 3.21% WA 1M SOFR floor² 2.33% WA CRE loan portfolio LTV 77.5% Total number of CRE loans 56 Average CRE loan size, at par $38.3 WA risk rating, at par 2.6 BALANCE BY REGION¹,³ Pacific 7.3% Mountain 13.6% Southwest 16.2% West North Central 3.8% East North Central 14.8% Southeast 18.2% Mid Atlantic 11.1% Northeast 15.0% LOAN PORTFOLIO ACTIVITY, AT PAR¹ Portfolio at June 30, 2026 57 loans $2,137.8 New loan production4 Payoffs and paydowns $34.3 ($35.8) Future fundings5 $11.0 Portfolio at September 30, 2026 56 loans $2,147.3 PROPERTY TYPE¹ 80.9% Multifamily 11.3% Office 4.8% Hotel 2.3% Mixed-Use 0.7% Self-storage 1 All $ amounts are in millions and the percentages for region and property type disclosures are based on total carrying value of the CRE loans in the CRE Lending Segment 2 At September 30, 2026, all CRE whole loans are indexed to SOFR and the WA benchmark rate was 3.77% 3 Texas (14.2%) and Ohio (11.5%) were the states with the highest concentrations. Based on regions identified by the National Council of Real Estate Investment Fiduciaries (NCREIF) 4 Gross origination amount was $35.3M, amount presented above is net of unfunded commitment at closing 5 Amount includes PIK on a preferred equity credit
CRE principal investing - PORTFOLIO MATURITY PROFILE ACRESREIT.COM 1 Excludes loans in default at September 30, 2026 2 Fully extended maturity assumes the borrower elects and qualifies for all extensions 3 Interest rate caps are contractually owned by the underlying borrower and supplement the property cash flows that collateralize the CRE loan portfolio 4 Current interest rate caps mature between December 2026 and March 2029 5 Three loans funded debt service reserves instead of buying an interest rate cap 3.1 years 1,2 Fully extended weighted average loan maturity 62% 3,4,5 of portfolio par value is covered by interest rate caps or debt service reserves at September 30, 2026 57% of loan par matures in 2030–2032, after all current caps expire in March 2029 Fully extended loan and interest rate cap maturities, $M at par ■ Loan maturities ■ Interest rate cap maturities
CRE Principal investing - Risk Ratings and CECL Reserves ACRESREIT.COM 86% of ACR’s loans have a risk rating of 1, 2 or 3 that are performing in line with or near underwritten expectations¹‧²‧³ 96% 52 of ACR’s 56 loans are current on contractual payments at September 30, 2026¹ W.A. RISK RATING BY COLLATERAL TYPE, $ AT PAR¹ $1.7B $1.7B $244.4M $247.8M CECL RESERVE OVERVIEW¹ $ in millions 2Q26 3Q26 Total CECL reserve $21.1 $29.4 General CECL reserve 21.1 29.4 Specific CECL reserve — — Reserve split by risk rating 39% risk rated 4 – 5 • 61% risk rated 1 – 3 3Q26 RISK RATING OVERVIEW¹‧³ 4 1 Excludes consolidated fund at September 30, 2026 2 See page 28 for additional information on the risk rating definitions 3 Percentage represents the Company’s economic interest in the CRE loans 4 Amount is less than 0.5% $103.3M $ 103.3M $ 16.0M $ 16.0M $ 49.3M $ 49.8M 3Q26 W.A. Risk Rating: 2.61 2Q26 W.A. Risk Rating: 2.6
CRE Principal investing - Leverage and Liquidity Trend ACRESREIT.COM LEVERAGE RATIOS TOTAL LIQUIDITY ($ IN MILLIONS)¹ 4Q25 1Q26 2Q26 3Q26 Total liquidity $107.9 $86.8 $82.7 $96.2 1 Excludes consolidated fund at September 30, 2026 2 Includes the projected amount of proceeds available to the Company if the unfinanced loans were financed with the applicable facilities
CRE PRINCIPAL INVESTING - CECL Trend Analysis ACRESREIT.COM 1 Property type percentages based on total carrying value of the CRE loans, CECL reserve percentage is based on the total par value of the CRE loans The CECL reserve fell to 0.88% in 1Q26 as loans resolved, then rose to 1.37% at 3Q26 on a more conservative macroeconomic outlook, with portfolio risk ratings unchanged. CECL reserve, % of CRE loans at par Multifamily share of CRE portfolio
CRE PRINCIPAL INVESTING - Benchmark Sensitivity Analysis Trend ACRESREIT.COM At September 30, 2026, the CRE loan portfolio is 97% floating rate loans that are indexed to one-month term SOFR with a weighted average floor of 2.33% September 30, 2025 September 30, 2026 Quarterly Net Interest Income per Share Sensitivity to Changes in SOFR SOFR: 3.91% SOFR: 4.13%
Appendix ACRESREIT.COM
Condensed Consolidated Balance Sheets ACRESREIT.COM (in thousands, except share and per share data) Sep. 30, 2026 December 31, 2025 Assets (unaudited) Cash $ 55,393 $ 85,958 Accrued interest receivable 37,006 27,259 CRE loans 2,139,412 1,830,367 Less: allowance for credit losses (29,409) (20,398) CRE loans, net 2,110,003 1,809,969 Investments in unconsolidated entities 30,271 29,237 Investments in real estate and properties held for sale 134,748 167,240 Right of use assets, intangible assets and other assets 48,417 42,701 Goodwill 175,085 — Assets of Consolidated Fund 1,974,990 — Total Assets $ 4,565,913 $ 2,162,364 Liabilities Accounts payable and other liabilities $ 24,529 $ 14,078 Accrued interest payable 6,380 6,814 Borrowings 1,978,564 1,544,938 Lease liabilities 55,674 45,942 Liabilities of Consolidated Fund 1,310,257 — Total Liabilities 3,375,404 1,611,772 Equity Common stock, par value $0.001 and Series C & D Preferred stock, par value $0.001 25 17 Additional paid-in capital 1,290,092 1,142,410 Accumulated other comprehensive loss (717) (1,603) Distributions in excess of earnings (789,896) (720,028) Total Stockholders’ Equity 499,504 420,796 Non-controlling interests 691,005 129,796 Total Equity 1,190,509 550,592 Total Liabilities and Equity $ 4,565,913 $ 2,162,364
(Unaudited, in thousands, except share and per share data) For the Three Months Ended For the Nine Months Ended Revenues Sep. 30, 2026 Sep. 30, 2025 Sep. 30, 2026 Sep. 30, 2025 Interest income $ 37,685 $ 28,288 $ 110,445 $ 85,845 Interest expense 24,898 19,917 77,893 63,304 Net interest income 12,787 8,371 32,552 22,541 Real estate income 11,252 12,632 30,229 37,271 Fee and other income 152 — 152 — Other revenue 31 34 93 100 Total revenues 24,222 21,037 63,026 59,912 Operating Expenses General and administrative 4,189 2,509 9,984 8,442 Compensation and benefits 2,436 — 2,436 — Real estate expenses 18,733 15,455 38,966 42,146 Management fees - related party 613 1,581 3,738 4,813 Equity compensation - related party 115 374 5,548 1,774 Merger and internalization costs 38,282 — 43,393 — Corporate interest expense 5,236 — 5,236 — Provision for (reversal of) credit losses, net 8,295 (3,960) 9,011 (6,457) Total operating expenses 77,899 15,959 118,312 50,718 Other Income (Expense) Equity in earnings (losses) of unconsolidated subsidiaries 18 (827) 693 (1,988) Gain on sale of investment in real estate — 13,141 3,336 13,141 Net realized and unrealized gains on investments of Consolidated Fund (480) — (480) — Interest income of Consolidated Fund 20,942 — 20,942 — Interest expense of Consolidated Fund (13,923) — (13,923) — Expenses of the Consolidated Fund (601) — (601) — Other income (expense) (174) 655 (69) 1,377 Total other income (expense) 5,782 12,969 9,898 12,530 (Loss) Income before Taxes (47,895) 18,047 (45,388) 21,724 Income tax expense (2) — (3) (83) Net (Loss) Income (47,897) 18,047 (45,391) 21,641 Net income allocated to preferred shares (6,036) (5,286) (16,246) (15,881) Net (income) loss allocable to non-controlling interest, net of taxes (2,393) (2,979) (8,231) (2,569) Net (Loss) Income Allocable to Common Shares $ (56,326) $ 9,782 $ (69,868) $ 3,191 Net (Loss) Income per Common Share – Basic $ (5.16) $ 1.38 $ (8.65) $ 0.44 Net (Loss) Income per Common Share – Diluted $ (5.16) $ 1.34 $ (8.65) $ 0.42 Weighted Average Number of Common Shares Outstanding - Basic 10,923,342 7,106,510 8,074,695 7,238,446 Weighted Average Number of Common Shares Outstanding - Diluted 10,923,342 7,314,332 8,074,695 7,558,133 Condensed Consolidated Statements of Operations
Earnings Available for Distribution ACRESREIT.COM 1 See page 27 for additional information on these non-GAAP financial measures 2 Amount presented is net of the amount allocable to the non-controlling interest 3 Realized net gain (loss) on CRE Lending represents the gain or loss, adjusted for any amounts allocated to non-controlling interests, recognized by the Company on dispositions of real estate or real estate-related assets, including CRE loans. 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 share data) For the Three Months Ended For the Nine Months Ended 3Q26 3Q25 3Q26 3Q25 Net (Loss) Income Allocable to Common Shares – GAAP $ (56,326) $ 9,782 $ (69,868) $ 3,191 Realized gain on sale of investment in real estate — (9,477) (3,336) (9,477) Reconciling Items: Non-cash equity compensation expense 115 374 5,753 1,774 Non-cash provision for (reversal of) CRE credit losses2 5,070 (3,960) 5,766 (6,457) Non-cash amortization of discount on borrowings 156 — 156 — Fair value of ACC stock options attributable to post-combination costs 13,720 — 13,720 — Realized net gain (loss) on CRE Lending3 — 9,477 3,336 8,777 Real estate depreciation and amortization 8,425 1,223 10,821 3,591 Earnings (Loss) Income Available for Distribution Allocable to Common Shares1 $ (28,840) $ 7,419 $ (33,652) $ 1,399 Earnings (Loss) Income Available for Distribution per Common Share – Diluted1 $ (2.64) $ 1.01 $ (4.17) $ 0.19 Weighted Average Number of Common Shares Outstanding – Diluted on EAD Allocable to Common Shares 10,923,342 7,314,332 8,074,695 7,558,133
Key Definitions ACRESREIT.COM 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 indicative of its current CRE loan portfolio and other CRE-related investments and operations. EAD, for reporting purposes, is defined as GAAP net income (loss) attributable to Common Shares for such period, adjusted to: (A) exclude the following items incurred during such period: (i) non-cash equity compensation expense, (ii) unrealized gains and losses, (iii) non-cash provisions for loan losses, (iv) non-cash impairments on securities, (v) non-cash amortization of discounts or premiums associated with borrowings, (vi) non-cash real estate depreciation and amortization, (vii) non-cash amortization of goodwill or intangibles, (viii) foreign currency gains or losses and (ix) income or loss from discontinued operations; and (B) add any realized gain and deduct any realized loss incurred during such period to the extent such realized gain or loss was previously excluded from the calculation of Earnings Available for Distribution for a previous period. EAD may also be adjusted periodically to exclude certain one-time events pursuant to changes in GAAP and certain non-cash items. Secured Overnight Financing Rate: Secured Overnight Financing Rate (“SOFR”) refers to the collective one-month Term Secured Overnight Financing Rate that are used as benchmarks on the originated loans. Book Value : Book value is presented per common share, excluding unvested restricted stock and including warrants to purchase common stock. The measure refers to common stock book value, which is calculated as total stockholders’ equity less preferred stock equity. Leverage ratio is calculated as the respective period ended borrowings over total equity. Asset-specific leverage ratio excludes corporate debt from the calculation. Leverage Ratio: Current Expected Credit Losses: Current Expected Credit Losses (“CECL”) refers to the provision to earnings in order to estimate expected losses.
Other Disclosures ACRESREIT.COM Rating 1: Property performance has surpassed underwritten expectations Occupancy is stabilized, the property has had a history of consistently high occupancy, and the property has a diverse and high-quality tenant mix Rating 2: Property performance is consistent with underwritten expectations and covenants and performance criteria are being met or exceeded Occupancy is stabilized, near stabilized or is on track with underwriting Rating 3: Property performance lags behind underwritten expectations Occupancy is not stabilized and the property has some tenancy rollover Rating 4: Property performance significantly lags behind underwritten expectations. Performance criteria and loan covenants have required occasional waivers Occupancy is not stabilized and the property has a large amount of tenancy rollover Rating 5: Property performance is significantly worse than underwritten expectations. The loan is not in compliance with loan covenants and performance criteria and may be in default. Expected sale proceeds would not be sufficient to pay off the loan at maturity The property has a material vacancy rate and significant rollover of remaining tenants An updated appraisal is required upon designation and updated on an as-needed basis 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 underwritten plan, time since origination, current implied and/or re-underwritten loan-to-collateral value ratios, loan structure and exit plan. Depending on the loan’s performance against these various factors, loans are rated on a scale from 1 to 5, with loans rated 1 representing loans with the highest credit quality and loans rated 5 representing loans with the lowest credit quality. The factors evaluated provide general criteria to monitor credit migration in the Company’s loan portfolio; as such, a loan’s rating may improve or worsen, depending on new information received. The criteria set forth below should be used as general guidelines, and therefore not every loan will have all of the characteristics described in each category below. Commercial Real Estate Loans Risk Ratings
Additional information is available at the Company’s website. Contact Information Headquarters: 390 RXR Plaza Uniondale, NY 11556 Investor Relations: ir@acresreit.com 516-862-2385 New York Stock Exchange: Common Stock Symbol: ACR Pref. Stock Symbols: ACRPrC & ACRPrD ACRES Commercial Realty Corp. is a real estate investment trust that is primarily focused on originating, underwriting and managing commercial real estate mortgage loans. ACRES invests nationwide in the middle market with a focus on multifamily, student housing, hospitality, industrial and office properties. In addition, ACRES manages third-party capital and provides insurance solutions through its investment management business. www.acresreit.com