Ares Commercial Real Estate (NYSE: ACRE) posts 2025 loss but maintains 12% yield

Rhea-AI Filing Summary

Ares Commercial Real Estate Corporation reported weak 2025 GAAP results but stronger cash-style earnings and maintained its dividend. For the fourth quarter, GAAP net loss was $(3.9) million, or $(0.07) per diluted share, while Distributable Earnings were $8.5 million, or $0.15 per diluted share. For full year 2025, GAAP net loss was $(0.9) million, or $(0.02) per share, and Distributable Earnings (Loss) were $(6.7) million, or $(0.12) per share.

Book value stood at $9.26 per common share, or $11.57 excluding the $127 million CECL reserve, which equals 8% of loans held for investment. The company collected $572 million of loan repayments during 2025 and originated $486 million of new senior loan commitments, with an additional $150 million closed after year-end.

The portfolio totals about $1.7 billion of loans and REO, with a focus on multifamily, industrial, and office assets, and a high CECL reserve coverage on risk-rated 4 and 5 loans. The board declared a $0.15 per-share cash dividend for the first quarter of 2026, matching the fourth quarter 2025 dividend.

False000152937700015293772026-02-102026-02-10

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

_____________________________________________________________________ 

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): February 10, 2026

ARES COMMERCIAL REAL ESTATE CORPORATION

(Exact Name of Registrant as Specified in Charter)

 

Maryland

001-35517

45-3148087

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

245 Park Avenue, 42nd Floor, New York, NY 10167

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code (212) 750-7300

(Former Name or Former Address, if Changed Since Last Report) N/A

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, $0.01 par value per share			ACRE			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in 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. o

Item 2.02 Results of Operations and Financial Condition.

On February 10, 2026, the registrant issued a press release announcing its financial results for the quarter and year ended December 31, 2025. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 7.01 Regulation FD Disclosure.

On February 10, 2026, the registrant made available on its website an earnings presentation with respect to its financial results for the quarter and year ended December 31, 2025. A copy of the presentation is attached hereto as Exhibit 99.2 and incorporated herein by reference. 

The information disclosed under Item 2.02 and Item 7.01, including Exhibit 99.1 and Exhibit 99.2 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d)          Exhibits:

Exhibit Number						Description
99.1						Press Release, dated February 10, 2026
99.2						Presentation of Ares Commercial Real Estate Corporation, dated February 10, 2026
104						Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document

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.

									ARES COMMERCIAL REAL ESTATE CORPORATION
Date:			February 10, 2026			By:			/s/ Jeffrey M. Gonzales
						Name:			Jeffrey M. Gonzales
						Title:			Chief Financial Officer and Treasurer

Exhibit 99.1

ARES COMMERCIAL REAL ESTATE CORPORATION REPORTS

FOURTH QUARTER AND FULL YEAR 2025 RESULTS

Fourth quarter GAAP net income (loss) of $(3.9) million or $(0.07) per diluted common share and

Distributable Earnings1 of $8.5 million or $0.15 per diluted common share

Full year GAAP net income (loss) of $(0.9) million or $(0.02) per diluted common share and

Distributable Earnings (Loss)1 of $(6.7) million or $(0.12) per diluted common share

- Subsequent to the year ended December 31, 2025 -

Closed $150 million of new loan commitments

Declared first quarter 2026 dividend of $0.15 per common share

NEW YORK—(BUSINESS WIRE)—Ares Commercial Real Estate Corporation (the “Company”) (NYSE:ACRE), a specialty finance company primarily engaged in directly originating and investing in commercial real estate loans and related investments, reported generally accepted accounting principles (“GAAP”) net income (loss) of $(3.9) million or $(0.07) per diluted common share and Distributable Earnings1 of $8.5 million or $0.15 per diluted common share for the fourth quarter of 2025. The Company reported GAAP net income (loss) of $(0.9) million or $(0.02) per diluted common share and Distributable Earnings (Loss)1 of $(6.7) million or $(0.12) per diluted common share for full year 2025.

“The advancements we made in 2025 against our strategic goals of addressing risk rated 4 and 5 loans, reducing office and REO properties and maintaining our flexible balance sheet position allowed ACRE to return to investing in the second half of 2025,” said Bryan Donohoe, Chief Executive Officer of Ares Commercial Real Estate Corporation. “As we enter 2026, we remain focused on achieving these objectives and ultimately repositioning the portfolio to drive earnings growth.”

“During 2025, we collected $572 million in loan repayments, further increasing our balance sheet flexibility in order to support asset resolutions and new investment activity,” said Jeff Gonzales, Chief Financial Officer of Ares Commercial Real Estate Corporation. “We continue to optimize our financing structure by increasing the availability and reducing the cost of our borrowings to support our future growth objectives.”

_________________________________

(1) Distributable Earnings (Loss) is a non-GAAP financial measure. Refer to Schedule I for the definition and reconciliation of Distributable Earnings (Loss).

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2026 ANNUAL STOCKHOLDERS MEETING

The Board of Directors set March 26, 2026 as the record date for the Company’s 2026 Annual Meeting of Stockholders. The 2026 Annual Meeting of Stockholders will be held on May 27, 2026.

COMMON STOCK DIVIDEND

On November 7, 2025, the Board of Directors of the Company declared a regular cash dividend of $0.15 per common share for the fourth quarter of 2025. The fourth quarter 2025 dividend was paid on January 15, 2026 to common stockholders of record as of December 31, 2025.

On February 10, 2026, the Board of Directors of the Company declared a regular cash dividend of $0.15 per common share for the first quarter of 2026. The first quarter 2026 dividend will be payable on April 15, 2026 to common stockholders of record as of March 31, 2026.

ADDITIONAL INFORMATION

The Company issued a presentation of its fourth quarter and full year 2025 results, which can be viewed at www.arescre.com on the Investor Resources section of our home page under Events and Presentations. The presentation is titled “Fourth Quarter and Full Year 2025 Earnings Presentation.” The Company also filed its Annual Report on Form 10-K for the year ended December 31, 2025 with the U.S. Securities and Exchange Commission on February 10, 2026.

CONFERENCE CALL AND WEBCAST INFORMATION

On Tuesday, February 10, 2026, the Company invites all interested persons to attend its webcast/conference call at 12:00 p.m. (Eastern Time) to discuss its fourth quarter and full year 2025 financial results.

All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of the Company’s website at www.arescre.com. Please visit the website to test your connection before the webcast. Domestic callers can access the conference call by dialing +1 (800) 225-9448. International callers can access the conference call by dialing +1 (203) 518-9708. Please provide passcode ACREQ425. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected. For interested parties, an archived replay of the call will be available through March 10, 2026 at 5:00 p.m. (Eastern Time) to domestic callers by dialing +1 (800) 723-0389 and to international callers by dialing +1 (402) 220-2647. An archived replay will also be available through March 10, 2026 on a webcast link located on the Home page of the Investor Resources section of the Company’s website.

ABOUT ARES COMMERCIAL REAL ESTATE CORPORATION

Ares Commercial Real Estate Corporation (the “Company”) is a specialty finance company primarily engaged in directly originating and investing in commercial real estate loans and related investments. Through its national direct origination platform, the Company provides a broad offering of flexible and reliable financing solutions for commercial real estate owners and operators. The Company invests in whole and co-invested senior mortgage loans, as well as subordinate financings, mezzanine debt and preferred equity, with an emphasis on providing value added financing on a variety of properties located in liquid markets across the United States. Ares Commercial Real Estate Corporation elected and qualified to be taxed as a real estate investment trust and is externally managed by a subsidiary of Ares Management Corporation. For more information, please visit www.arescre.com. The contents of such website are not, and should not be deemed to be, incorporated by reference herein.

FORWARD-LOOKING STATEMENTS

Statements included herein or on the webcast / conference call may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These statements relate to future events or the Company’s future performance or financial condition and include, but are not limited to, statements about potential earnings, the resolution of underperforming loans, increased investment activity, liquidity management, reduction or increase of CECL reserve, reduction or increase of available borrowings, the industry and the loan market. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including global economic trends and economic

2

conditions, including high inflation, slower growth, changes to fiscal and monetary policy, high interest rates, currency fluctuations and changes caused by tariffs and trade disputes, as well as geopolitical instability, changes in interest rates and credit spreads, management’s estimate of current expected credit losses and current expected credit loss reserve, the amount of commercial mortgage loans requiring refinancing, the demand for commercial real estate loans, the Company’s expected investment capacity and available capital, rates of default or decreased recovery rates on the Company’s target investments, the Company’s business and investment strategy, the Company’s projected operating results, the ability of Ares Commercial Real Estate Management LLC (“ACREM” or the Company’s “Manager”) to locate suitable investments for the Company, monitor, service and administer the Company’s investments and execute its investment strategy, and the risks described from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risk factors described in Part I, Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K, filed with the SEC on February 10, 2026. Any forward-looking statement, including any contained herein, speaks only as of the time of this press release and Ares Commercial Real Estate Corporation undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call. Projections and forward-looking statements are based on management’s good faith and reasonable assumptions, including the assumptions described herein.

INVESTOR RELATIONS CONTACTS

Ares Commercial Real Estate Corporation

Carl Drake or John Stilmar

(888) 818-5298

iracre@aresmgmt.com

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ARES COMMERCIAL REAL ESTATE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

						As of December 31,
						2025						2024
ASSETS
Cash and cash equivalents						$	29,289					$	63,799
Restricted cash ($1,108 and $2,495 related to consolidated VIEs, respectively)						37,868						2,495
Loans held for investment ($138,950 and $551,955 related to consolidated VIEs, respectively)						1,528,806						1,656,688
Current expected credit loss reserve						(125,756)						(136,224)
Loans held for investment, net of current expected credit loss reserve						1,403,050						1,520,464
Investment in available-for-sale debt securities, at fair value						—						8,684
Real estate owned held for investment, net ($52,634 and $58,844 related to consolidated VIEs, respectively)						130,165						139,032
Other assets ($76 and $1,991 of interest receivable related to consolidated VIEs, respectively)						17,770						16,732
Total assets						$	1,618,142					$	1,751,206
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Secured funding agreements						$	858,176					$	588,468
Secured term loan						89,360						128,062
Collateralized loan obligation securitization debt (consolidated VIEs)						99,921						455,839
Due to affiliate						4,061						3,790
Dividends payable						8,442						13,924
Other liabilities ($257 and $1,309 of interest payable related to consolidated VIEs, respectively)						48,614						20,991
Total liabilities						1,108,574						1,211,074
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock, par value $0.01 per share, 450,000,000 shares authorized at December 31, 2025 and 2024 and 55,026,453 and 54,542,178 shares issued and outstanding at December 31, 2025 and 2024, respectively						532						532
Additional paid-in capital						820,827						816,923
Accumulated other comprehensive income (loss)						—						37
Accumulated earnings (deficit)						(311,791)						(277,360)
Total stockholders' equity						509,568						540,132
Total liabilities and stockholders' equity						$	1,618,142					$	1,751,206

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ARES COMMERCIAL REAL ESTATE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

						For the Three Months Ended December 31, 2025												For the Year Ended December 31, 2025
Revenue:
Interest income						$	23,732											$	97,590
Interest expense						(16,078)												(65,159)
Net interest margin						7,654												32,431
Revenue from real estate owned						5,562												22,402
Total revenue						13,216												54,833
Expenses:
Management and incentive fees to affiliate						2,420												9,837
Professional fees						678												2,755
General and administrative expenses						1,595												7,042
General and administrative expenses reimbursed to affiliate						810												3,618
Expenses from real estate owned						4,495												18,157
Total expenses						9,998												41,409
(Provision for) reversal of current expected credit losses, net						(9,835)												17,845
Realized losses on loans						—												(34,643)
Realized gain on sale of real estate owned						2,757												2,757
Income (loss) before income taxes						(3,860)												(617)
Income tax expense (benefit), including excise tax						5												285
Net income (loss) attributable to common stockholders						$	(3,865)											$	(902)
Earnings (loss) per common share:
Basic earnings (loss) per common share						$	(0.07)											$	(0.02)
Diluted earnings (loss) per common share						$	(0.07)											$	(0.02)
Weighted average number of common shares outstanding:
Basic weighted average shares of common stock outstanding						54,951,917												54,886,025
Diluted weighted average shares of common stock outstanding						54,951,917												54,886,025
Dividends declared per share of common stock1						$	0.15											$	0.60

_________________________

(1) There is no assurance dividends will continue at these levels or at all.

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SCHEDULE I

Reconciliation of Net Income (Loss) to Non-GAAP Distributable Earnings (Loss)

Distributable Earnings (Loss) is a non-GAAP financial measure that helps the Company evaluate its financial performance excluding the effects of certain transactions and GAAP adjustments that it believes are not necessarily indicative of its current loan origination portfolio and operations. To maintain the Company’s REIT status, the Company is generally required to annually distribute to its stockholders substantially all of its taxable income. The Company believes the disclosure of Distributable Earnings (Loss) provides useful information to investors regarding the Company’s ability to pay dividends, which is one of the principal reasons the Company believes investors invest in the Company. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Distributable Earnings (Loss) is defined as net income (loss) attributable to common stockholders computed in accordance with GAAP, excluding non-cash equity compensation expense, the incentive fees the Company pays to its Manager, depreciation and amortization (to the extent that any of the Company’s target investments are structured as debt and the Company forecloses on any properties underlying such debt), any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss), one-time events pursuant to changes in GAAP and certain non-cash charges after discussions between the Company’s Manager and the Company’s independent directors and after approval by a majority of the Company’s independent directors. Loan balances that are deemed to be uncollectible are written-off as a realized loss and are included in Distributable Earnings (Loss). Distributable Earnings (Loss) is aligned with the calculation of “Core Earnings,” which is defined in the Management Agreement and is used to calculate the incentive fees the Company pays to its Manager.

Reconciliation of net income (loss) attributable to common stockholders, the most directly comparable GAAP financial measure, to Distributable Earnings (Loss) is set forth in the table below for the three months and year ended December 31, 2025 ($ in thousands):

			For the Three Months Ended December 31, 2025						For the Year Ended December 31, 2025
Net income (loss) attributable to common stockholders			$	(3,865)					$	(902)
Stock-based compensation			893						3,904
Incentive fees to affiliate			—						—
Depreciation and amortization of real estate owned			1,605						8,115
Provision for (reversal of) current expected credit losses, net			9,835						(17,845)
Distributable Earnings (Loss)			$	8,468					$	(6,728)
Net income (loss) attributable to common stockholders			$	(0.07)					$	(0.02)
Stock-based compensation			0.02						0.07
Incentive fees to affiliate			—						—
Depreciation and amortization of real estate owned			0.03						0.15
Provision for (reversal of) current expected credit losses, net			0.18						(0.33)
Basic Distributable Earnings (Loss) per common share			$	0.15					$	(0.12)
Net income (loss) attributable to common stockholders			$	(0.07)					$	(0.02)
Stock-based compensation			0.02						0.07
Incentive fees to affiliate			—						—
Depreciation and amortization of real estate owned			0.03						0.15
Provision for (reversal of) current expected credit losses, net			0.18						(0.33)
Diluted Distributable Earnings (Loss) per common share			$	0.15					$	(0.12)

_________________________

Note: Numbers presented may not foot due to rounding.

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Fourth Quarter and Full Year 2025 Earnings Presentation Exhibit 99.2

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 condition of Ares Commercial Real Estate Corporation (“ACRE” or, the “Company”), Ares Commercial Real Estate Management LLC (“ACREM” or the Company's "Manager"), a subsidiary of Ares Management Corporation (“Ares Corp.”), Ares Corp., certain of their subsidiaries and certain funds and accounts managed by ACREM, Ares Corp. and/or their subsidiaries, including, without limitation, ACRE. These statements include, but are not limited to, statements about potential earnings, the resolution of underperforming loans, increased investment activity, liquidity management, reduction or increase of CECL reserve, reduction or increase of available borrowings, the industry and the loan market and are not guarantees of future results or financial condition and involve a number of risks and uncertainties. Actual results could differ materially from those in the forward-looking statements as a result of a number of factors, including global economic trends and economic conditions, including high inflation, slower growth, changes to fiscal and monetary policy, high interest rates, currency fluctuations and changes caused by tariffs and trade disputes, as well as geopolitical instability, changes in interest rates and credit spreads, management’s estimate of current expected credit losses and current expected credit loss reserve, the amount of commercial mortgage loans requiring refinancing, the demand for commercial real estate loans, the Company’s expected investment capacity and available capital, rates of default or decreased recovery rates on the Company’s target investments, the Company’s business and investment strategy, the Company’s projected operating results, the ability of Ares Commercial Real Estate Management LLC to locate suitable investments for the Company, monitor, service and administer the Company’s investments and execute its investment strategy, and other risks described from time to time in ACRE’s filings within the Securities and Exchange Commission (“SEC”). Any forward-looking statement, including any contained herein, speaks only as of the time of this release and none of ACRE, ARES Corp. nor ACREM undertakes any duty to update any forward-looking statements made herein. Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws. Ares Corp. is the parent to several registered investment advisers, including Ares Management LLC (“Ares Management”) and ACREM. Collectively, Ares Corp., its affiliated entities, and all underlying subsidiary entities shall be referred to as “Ares” unless specifically noted otherwise. For a discussion regarding potential risks on ACRE, see Part I., Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Part I., Item 1A. “Risk Factors” in ACRE’s Annual Report on Form 10-K and Part II, Item 1A. "Risk Factors" in ACRE’s subsequent Quarterly Reports on Form 10-Q. The information contained in this presentation is summary information that is intended to be considered in the context of ACRE’s SEC filings and other public announcements that ACRE, ACREM or Ares may make, by press release or otherwise, from time to time. ACRE, ACREM and Ares undertake no duty or obligation to publicly update or revise the forward-looking statements or other information contained in this presentation. These materials contain information about ACRE, ACREM and Ares, and certain of their respective personnel and affiliates, information about their respective historical performance and general information about the market. You should not view information related to the past performance of ACRE, ACREM or Ares or information about the market, as indicative of future results, the achievement of which cannot be assured. Nothing in these materials should be construed as a recommendation to invest in any securities that may be issued by ACRE or any other fund or account managed by ACREM or Ares, or as legal, accounting or tax advice. None of ACRE, ACREM, Ares or any affiliate of ACRE, ACREM or Ares makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and nothing contained herein shall be relied upon as a promise or representation whether as to the past or future performance. Certain information set forth herein includes estimates and projections and involves significant elements of subjective judgment and analysis. Further, such information, unless otherwise stated, is before giving effect to management and incentive fees and deductions for taxes. No representations are made as to the accuracy of such estimates or projections or that all assumptions relating to such estimates or projections have been considered or stated or that such estimates or projections will be realized. In addition, in light of the various investment strategies of such other investment partnerships, funds and/or pools, it is noted that such other investment programs may have portfolio investments inconsistent with those of the investment vehicle or strategy discussed herein. These materials are not intended as an offer to sell, or the solicitation of an offer to purchase, any security, the offer and/or sale of which can only be made by definitive offering documentation. Any offer or solicitation with respect to any securities that may be issued by ACRE will be made only by means of definitive offering memoranda or prospectus, which will be provided to prospective investors and will contain material information that is not set forth herein, including risk factors relating to any such investment. For the definitions of certain terms used in this presentation, please refer to the "Glossary" slide in the appendix. This presentation may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor’s. Such information has not been independently verified and, accordingly, ACRE makes no representation or warranty in respect of this information. Reproduction and distribution of third party content in any form is prohibited except with the prior written permission of the related third party. Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. THIRD PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THIRD PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES, OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice. 2

Q4 2025 and Full Year 2025 Company Results and Highlights Note: As of December 31, 2025, unless otherwise noted. Past performance is not indicative of future results. Due to rounding, numbers presented may not add up to the totals provided. See relevant endnotes on page 22. Earnings and Results • Q4 2025 and FY 2025 GAAP net income (loss) of $(0.07) and $(0.02) per diluted common share, respectively • Q4 2025 and FY 2025 Distributable Earnings (Loss) of $0.15 and $(0.12) per diluted common share, respectively1 • Q4 2025 and FY 2025 Distributable Earnings of $0.11 and $0.46 per diluted common share, excluding realized gains (losses) of $0.04 and $(0.58) per diluted common share, respectively1 • Book value of $9.26 per common share (or $11.57 per common share excluding CECL reserve)2 • $127 million CECL reserve representing 8% of outstanding principal balance of loans held for investment Progress and Achievements Further addressed risk rated 4 and 5 loans, reduced office loans and partially monetized REO properties • Reduced office loans by $48 million to $447 million in Q4 2025, bringing the total office loan reduction to $193 million in FY 2025 • Continued to support borrowers' business plans and made progress reducing risk across the portfolio, specifically in risk rated 4 and 5 loans in FY 2025 o Resolved two risk rated 4 and 5 loans and continued to actively address five risk rated 4 and 5 loans, including two that were added in FY 2025 • Changes to risk rated 4 and 5 loans and REO properties in Q4 2025: o Restructured an $81 million senior risk rated 4 loan collateralized by an office property in Arizona into a $65 million senior risk rated 3 loan and an $8 million risk rated 4 subordinated loan, whereby the sponsor contributed additional equity to partially paydown the loan and further support its business plan o Adjusted the risk rating of a $28 million senior Pennsylvania multifamily loan to risk rated 5 (previously risk rated 4) o Executed a partial sale related to the North Carolina office REO property for $5 million resulting in a gain of $2 million3 Achieved and maintained appropriate liquidity to support asset resolutions and new investing activity • Maintained moderate leverage profile, which reflects flexibility to drive further resolutions and support investment activity • Collected $74 million of repayments in Q4 2025, bringing total repayments to $572 million in FY 2025 • Available capital of $110 million supports continued asset resolutions and new investment objectives4 Investment Activity Increased investment activity to support earnings and further diversify and expand the loan portfolio • Closed eight senior loans totaling $393 million in commitments in Q4 2025, bringing total commitments originated to $486 million in FY 2025 • More than 60% of commitments originated in FY 2025 were co-invested alongside other Ares managed funds, allowing ACRE to access larger institutional opportunities from the Ares platform and maintain portfolio diversification objectives • More than 50% of commitments originated in FY 2025 were collateralized by residential and industrial properties • Subsequent to quarter end, closed two senior loans totaling $150 million in commitments collateralized by multifamily and mixed-use properties Dividends • Declared cash dividend of $0.15 per common share for shareholders for Q1 2026, which equates to an annualized implied dividend yield of approximately 12% to our stock price as of February 5, 20265 3

Portfolio Overview Note: As of December 31, 2025 unless otherwise noted. Past performance may not be indicative of future results. Numbers may not sum due to rounding. 1) Income yield is calculated as the annualized property level net operating income for the three months ended December 31, 2025 (excluding non-recurring items) divided by the carrying value. 2) Represents carrying value of loans held for investment and real estate owned held for investment as of December 31, 2025. 3) Data as of February 5, 2026. Portfolio Highlights $1.7 billion total portfolio comprised of loans held for investment and REO properties • Risk rated 1-3 loans (ex. office): Represents 57% of the total portfolio including a majority of loans collateralized by multifamily and industrial properties • Risk rated 1-3 office loans: Continued to perform with stable to improving leasing trends and continued sponsor support • Risk rated 4 and 5 loans: Continued to make progress on majority of risk rated 4 and 5 loans, including the two largest • REO: Both properties have income yields of approximately 9%1 ACRE’s Total Portfolio ($ in millions) Risk Rated 1-3 Loans (ex. Office) Risk Rated 1-3 Office Loans Risk Rated 4 and 5 Loans REO Total Number of Loans or REO Properties 24 5 5 2 36 Carrying Value2 $941 $272 $316 $130 $1,659 57%2 16%2 19%2 8%2 100%2 Chicago Office (Risk Rated 5) Brooklyn Residential/Condo (Risk Rated 4) • Carrying Value2: $140 million • Q4 2025 Update: Occupancy remains over 90% with a weighted average lease term of eight years. In addition, the borrower has been engaging in a potential sale process • Carrying Value2: $130 million • Q4 2025 Update: Construction continues to progress on schedule. The formal marketing plan has launched and sales are anticipated to begin in 1H 20263 Progress on Largest Risk Rated 4 and 5 Loans 4

Founded 1997 AUM $623 billion Employees 4,260+ Investment Professionals 1,600+ Global Offices 55+1 Direct Institutional Relationships 2,800+ Listing: NYSE – Market Capitalization $58 billion2 Ares Management is a Global Leader With approximately $623 billion in assets under management, Ares Management Corporation is a global alternative investment manager operating an integrated platform across five business groups 5 Note: As of December 31, 2025. AUM amounts include funds managed by Ivy Hill Asset Management, L.P., a wholly owned portfolio company of Ares Capital Corporation and registered investment adviser. Past performance is not indicative of future results. Numbers may not sum due to rounding. 1) Only counts one location per metro area. Includes only offices that Ares has leased or acquired. Does not include legacy GCP International locations where Ares is not acquiring the leases. 2) As of January 20, 2026. 3) New Delhi office is operated by a third party with whom Ares Asia maintains an ongoing relationship relating to the sourcing, acquisition and/or management of investments. 4) AUM managed by Ares Insurance Solutions excludes assets which are sub-advised by other Ares’ investment groups or invested in Ares funds and investment vehicles. 5) AUM includes Ares Acquisition Corporation II (“AACT”). 6) Risk adjusted returns do not guarantee against loss of capital. • Power of a broad and scaled platform enhancing investment capabilities • 20+ year track record of attractive risk adjusted returns through market cycles6 The Ares Differentiators O ve rv ie w • Deep management team with integrated and collaborative approach • A pioneer and leader in leveraged finance, private credit and secondaries Global Footprint3 Credit Real Assets Secondaries Private Equity Other Businesses A U M $407 billion $139 billion $42 billion $25 billion $9 billion St ra te gi es Direct Lending Liquid Credit Alternative Credit Opportunistic Credit APAC Credit Real Estate Equity Real Estate Debt Digital Infrastructure Infrastructure Opportunities Infrastructure Debt Private Equity Secondaries Real Estate Secondaries Infrastructure Secondaries Credit Secondaries Corporate Private Equity APAC Private Equity Ares Insurance Solutions4 Ares Acquisition Corporation5

Ares Real Estate is a Global Investment Manager and Operator The performance and awards noted herein relate only to selected funds/strategies and may not be representative of any given client’s experience and should not be viewed as indicative of Ares’ past performance or its funds’ future performance.. Note: Data as of December 31, 2025, unless otherwise indicated. See relevant endnotes on page 22. ~$114 billion Real Estate Q4 25 AUM 340+ Investment Professionals1 400+ Operating Professionals2 3,900+ Global Real Estate Properties ~765 million Global Portfolio Square Feet 105 thousand+ | 635 million+ Residential Units3 | Logistics Square Feet 6 Competitive Edge Delivers Demonstrated Performance Comprehensive and Dynamic Investment Solutions Core/ Core-Plus Opportunistic Value-Add Across Equity and Debt Investments

Office loans measured by outstanding principal balance decreased 10% QoQ and 30% YoY Office Loans Progress Note: As of December 31, 2025 unless otherwise noted. Past performance is not indicative of future results. Reduced Office Loans QoQ and YoY as Measured by Outstanding Principal Balance ($ in millions) 7 $847 $850 $640 $495 $447 Q4 2022 Q4 2023 Q4 2024 Q3 2025 Q4 2025

Balance Sheet and Capital Position Provides Flexibility Maintained balance sheet flexibility which supports the ability to resolve risk rated 4 and 5 loans and increase investment activity Note: Past performance is not indicative of future results. Due to rounding, numbers presented may not add up to the totals provided. 1) Total outstanding borrowings is based on total outstanding principal balance. 2) Net debt to equity ratio (excluding CECL reserve) is calculated as (i) $1.0 billion outstanding principal of borrowings less $31 million of cash (inclusive of restricted amounts available to repay collateralized loan obligation securitization debt), (ii) divided by the sum of total stockholders’ equity of $510 million plus CECL reserve of $127 million. Net debt to equity ratio including CECL reserve is 2.0x as of December 31, 2025. Total debt to equity ratio excluding CECL reserve is 1.6x and including CECL reserve is 2.1x as of December 31, 2025. Please see prior earnings presentations for calculations of net debt to equity ratio for prior periods. 3) As of December 31, 2025, includes $31 million of cash (inclusive of restricted amounts available to repay collateralized loan obligation securitization debt) and approximately $79 million of available financing proceeds under our secured funding agreements. Repayments on Loans Held for Investment $74 million in Q4 2025 $572 million in FY 2025 Available Capital3 $110 million 8 Achieved and Continued to Maintain Balance Sheet Flexibility ($ in millions) $1,739 $1,619 $1,174 $811 $1,048 2.0x 1.9x 1.6x 1.1x 1.6x Total Outstanding Borrowings Net Debt to Equity Excluding CECL Q4 2022 Q4 2023 Q4 2024 Q3 2025 Q4 2025 1 2

Trends in CECL Reserves Note: As of December 31, 2025 unless otherwise noted. Past performance is not indicative of future results. Numbers may not sum due to rounding. Change in CECL Reserve Q4 2025 ($ in millions) Q3 2025 CECL Reserve Net Increase in CECL Reserve on Existing Loans Impact from New Loan Commitments Q4 2025 CECL Reserve Change in CECL Reserve FY 2025 ($ in millions) YE 2024 CECL Reserve Reversal of CECL Reserve Due to Exits Net Decrease in CECL Reserve on Existing Loans Impact from New Loan Commitments YE 2025 CECL Reserve 9 $117 $6 $4 $127 $145 $(22) $(1) $5 $127

CECL reserve related to risk rated 4 and 5 loans: 92% CECL Reserve Note: As of December 31, 2025 unless otherwise noted. Past performance is not indicative of future results. Due to rounding, numbers presented may not add up to the totals provided. 1) Total CECL Reserve includes reserve on both the outstanding balances and unfunded commitments on loans held for investment. 2) Percentages are based on outstanding principal balance of loans held for investment. $127 million Total CECL Reserve1 8% CECL Reserve as a Percent of Loans Held for Investment2 10 CECL Reserve by Risk Rating CECL Reserve by Property Type CECL reserve related to office and residential/ condo: 86% 8% 39%53% Risk Rated 1-3 Loans Risk Rated 4 Loans Risk Rated 5 Loans 56%30% 14% Office Residential/ Condo Other

CECL Reserve for Risk Rated 4 and 5 Loans Note: As of December 31, 2025 unless otherwise noted. Past performance is not indicative of future results. Due to rounding, numbers presented may not add up to the totals provided. 1) Total CECL Reserve includes reserve on both the outstanding balances and unfunded commitments on loans held for investment. 2) Percentage is based on outstanding principal balance of loans with risk ratings of 4 or 5. 3) Percentages are based on outstanding principal balance of loans with risk ratings of 4 or 5 by property type. Risk Rated 4 and 5 Loans CECL Reserve by Property Type Risk Rated 4 and 5 Loans CECL Reserve as a Percent of Loan Balance3 $117 million CECL Reserve1 for Risk Rated 4 and 5 Loans 31% CECL Reserve as a Percent of Risk Rated 4 and 5 Loan Balance2 11 58% 32% 10% Office Residential/ Condo Other 39% 23% 27% Office Residential/ Condo Other

Summary of Real Estate Owned ("REO") Note: As of December 31, 2025, unless otherwise noted. Past performance may not be indicative of future results. Numbers may not sum due to rounding. 1) Carrying value is net of accumulated depreciation and amortization of $7 million for the Florida mixed-use property and $7 million for the North Carolina office property. 2) Income yield is calculated as the annualized property level net operating income for the three months ended December 31, 2025 (excluding non-recurring items) divided by the carrying value. Mixed-Use Office Quarter Converted to REO Q3 2023 Q3 2024 Location Florida North Carolina Square Footage 816 thousand 554 thousand Carrying Value1 $78 million $53 million Income Yield2 9% 9% 12

1. Appendix 13

Loans Held for Investment Portfolio Details Note: As of December 31, 2025 unless otherwise noted. Past performance is not indicative of future results. Due to rounding, numbers presented may not add up to the totals provided. 1) I/O = interest only, P/I = principal and interest. 2) The Illinois loan is structured as both a senior and mezzanine loan with the Company holding contiguous positions. The senior position has a per annum interest rate of S + 2.25% and the mezzanine position has a fixed per annum interest rate of 10.00%. The senior and mezzanine loans were both on non-accrual status as of December 31, 2025 and the Unleveraged Effective Yield is not applicable. In both November and December 2025, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the Illinois loan from November 2025 to December 2025 and from December 2025 to January 2026, respectively. 3) In October 2025, the Company and the borrower entered into a modification and extension agreement for the existing senior Arizona loan, which had an outstanding principal balance of $80.8 million at the time of the modification to, among other things, (1) borrower to repay $7.5 million of the outstanding principal of the existing senior loan and (2) split the remaining existing senior loan into a senior A-Note with an outstanding principal balance of $65.0 million, a subordinated B-Note with no initial outstanding principal balance and an unfunded commitment of $12.0 million for certain lender approved leasing costs and a subordinated C-Note with an outstanding principal balance of $8.3 million. The subordinated B-Note is pari-passu with new borrower contributions for the loan principal paydown and other additional capital contributions. The subordinated C-Note is subordinate to the A-Note, B-Note and the new borrower contributions. In addition, the maturity date of the senior A-Note, subordinated B-Note and the subordinated C-Note was extended from October 2025 to October 2027. The senior A-Note has a per annum interest rate of S + 2.00%, the subordinated B-Note has a fixed per annum interest rate of 12.00% and the subordinated C-Note has a fixed per annum interest rate of 5.50%. 14 ($ in millions) # Loan Type Location Origination Date Current Loan Commitment Outstanding Principal Carrying Value Interest Rate SOFR Floor Unleveraged Effective Yield Maturity Date Payment Terms1 Office Loans: 1 Senior IL Nov 2020 $166.2 $166.2 $139.6 2 1.5% —%2 Jan 20262 I/O 2 Senior NC Aug 2021 85.0 71.8 71.7 S+3.65% 0.2% 7.4% Aug 2028 I/O 3 Senior NY Jul 2021 65.0 65.0 65.0 S+2.65% 0.4% 6.3% Jul 2028 I/O 4 Senior AZ Sep 2021 65.0 65.0 65.0 S+2.00% 0.5% 5.7% Oct 20273 I/O 5 Senior IL Dec 2022 54.2 54.2 54.2 S+4.25% 3.0% 8.0% Jan 2027 I/O 6 Senior Diversified Jan 2020 16.1 16.1 15.9 S+3.75% 1.6% 10.0% Jul 2026 P/I 7 Subordinated AZ Sep 2021 20.4 8.4 8.3 3 —% 6.7% Oct 20273 I/O Total Office $471.9 $446.7 $419.7 Hotel Loans: 8 Senior CA Mar 2022 $60.8 $60.8 $60.8 S+4.20% —% 8.1% Mar 2026 I/O 9 Senior NY Mar 2022 55.7 55.7 55.6 S+4.40% 0.1% 8.4% Mar 2026 I/O 10 Senior SC Oct 2025 58.0 48.3 47.8 S+3.50% 3.0% 7.6% Nov 2028 I/O 11 Senior Diversified Nov 2025 25.0 23.9 23.7 S+3.75% 3.0% 7.8% Nov 2028 I/O 12 Senior FL Nov 2025 25.0 17.3 17.1 S+3.35% 2.8% 7.6% Dec 2028 I/O Total Hotel $224.5 $206.0 $205.0

Loans Held for Investment Portfolio Details Note: As of December 31, 2025 unless otherwise noted. Past performance is not indicative of future results. Due to rounding, numbers presented may not add up to the totals provided. 1) I/O = interest only, P/I = principal and interest. 2) In December 2025, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior Texas loan from December 2025 to January 2026. 3) The senior Pennsylvania loan was on non-accrual status as of December 31, 2025 and the Unleveraged Effective Yield is not applicable. In December 2025, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior Pennsylvania loan from December 2025 to January 2026. 4) In October 2025, the Company and the borrower entered into a modification and extension agreement to, among other things, extend the maturity date on the senior Texas loan from October 2025 to January 2026. 5) As of December 31, 2025, the senior New Jersey loan, which is collateralized by an industrial property, is in maturity default due to the failure of the borrower to repay the outstanding principal balance of the loan by the November 2024 maturity date and the borrower is current on all contractual interest payments. 6) The California loan is structured as a senior A-Note, with an outstanding principal balance of $7.0 million as of December 31, 2025, a subordinated B-Note with no outstanding principal balance and an unfunded commitment of $500 thousand for certain lender approved leasing costs and a subordinated C-Note with an outstanding principal balance of $12.6 million as of December 31, 2025. The subordinated B-Note and C-Note are subordinate to new borrower equity related to additional capital contributions. As of December 31, 2025, the subordinated C-Note was on non-accrual status and therefore, the Unleveraged Effective Yield is not applicable. ($ in millions) # Loan Type Location Origination Date Current Loan Commitment Outstanding Principal Carrying Value Interest Rate SOFR Floor Unleveraged Effective Yield Maturity Date Payment Terms1 Multifamily Loans: 13 Senior NY May 2022 $132.2 $132.2 $131.6 S+3.90% 0.2% 8.6% Jun 2026 I/O 14 Senior TX Nov 2021 68.8 68.5 68.5 S+2.95% —% 6.6% Jan 20262 I/O 15 Senior OH Sep 2023 57.8 57.3 57.1 S+3.05% 2.5% 7.1% Oct 2026 I/O 16 Senior NC Oct 2025 50.0 50.0 49.6 S+2.40% 3.0% 6.6% Oct 2027 I/O 17 Senior MA Sep 2025 50.0 49.0 48.5 S+3.10% 2.8% 7.3% Oct 2027 I/O 18 Senior PA Dec 2018 28.2 28.2 27.8 S+2.50% 2.8% —%3 Jan 20263 I/O 19 Senior TX Oct 2021 18.2 18.2 18.2 S+2.60% —% 6.5% Jan 20264 I/O Total Multifamily $405.2 $403.4 $401.3 Industrial Loans: 20 Senior GA Oct 2025 $100.5 $96.8 $95.9 S+2.25% 2.5% 6.3% Oct 2028 I/O 21 Senior CA Oct 2025 55.3 50.7 50.2 S+3.00% 3.0% 7.1% Nov 2028 I/O 22 Senior MA Jun 2023 46.5 45.6 45.5 S+2.90% —% 6.7% Jun 2028 I/O 23 Senior NJ Jun 2021 27.8 27.8 27.8 S+8.85% 0.2% 12.5% Nov 20245 I/O 24 Subordinated CA Aug 2019 13.1 12.6 10.9 S+3.85% 2.0% —%6 Jan 2027 I/O 25 Senior CA Aug 2019 7.0 7.0 7.0 S+3.85% 2.0% 7.5% Jan 20276 I/O Total Industrial $250.2 $240.5 $237.3 15

Loans Held for Investment Portfolio Details Note: As of December 31, 2025 unless otherwise noted. Past performance is not indicative of future results. Due to rounding, numbers presented may not add up to the totals provided. 1) I/O = interest only, P/I = principal and interest. 2) The New York loan is structured as both a senior and mezzanine loan with the Company holding contiguous positions. The senior and mezzanine positions each have a per annum interest rate of S + 8.95%. The senior and mezzanine loans were both on non-accrual status as of December 31, 2025 and the Unleveraged Effective Yield is not applicable. In December 2025, the borrower exercised a 12-month extension option in accordance with the loan agreement, which extended the maturity date on the senior and mezzanine loans to December 2026. 3) In November 2025, the borrower exercised a 12-month extension option in accordance with the loan agreement, which extended the maturity date on the senior Massachusetts loan to November 2026. 4) The weighted average floor is calculated based on loans with SOFR floors. ($ in millions) # Loan Type Location Origination Date Current Loan Commitment Outstanding Principal Carrying Value Interest Rate SOFR Floor Unleveraged Effective Yield Maturity Date Payment Terms1 Residential/Condominium Loans: 26 Senior NY Mar 2022 $167.7 $167.7 $129.8 S+8.95% 0.4% —%2 Dec 20262 I/O Total Residential/Condominium $167.7 $167.7 $129.8 Self Storage Loans: 27 Senior Diversified Dec 2025 $72.5 $70.5 $69.8 S+2.50% 2.8% 6.6% Dec 2028 I/O 28 Senior FL Jul 2025 12.3 11.9 11.9 S+3.25% 1.0% 7.1% Dec 2027 I/O 29 Senior IN Sep 2023 11.4 11.4 11.4 S+3.60% 0.9% 7.4% Jun 2026 I/O 30 Senior AZ Jul 2025 11.2 10.5 10.4 S+3.25% 3.0% 7.2% Feb 2028 I/O 31 Senior FL Jul 2025 9.9 9.3 9.2 S+3.75% 3.0% 7.6% Jun 2028 I/O 32 Senior PA Jul 2025 9.1 8.6 8.5 S+3.50% 2.0% 7.5% May 2028 I/O 33 Senior MA Apr 2022 7.7 7.7 7.7 S+3.00% 0.8% 6.9% Nov 20263 I/O 34 Senior FL Oct 2025 7.3 6.9 6.8 S+3.50% 3.0% 7.6% Apr 2028 I/O Total Self Storage $141.4 $136.8 $135.7 Loan Portfolio Total/Weighted Average $1,660.9 $1,601.1 $1,528.8 1.5%4 5.7% 16

Consolidated Balance Sheets   As of ($ in thousands, except share and per share data) 12/31/2025 12/31/2024 ASSETS Cash and cash equivalents $ 29,289 $ 63,799 Restricted cash ($1,108 and $2,495 related to consolidated VIEs, respectively) 37,868 2,495 Loans held for investment ($138,950 and $551,955 related to consolidated VIEs, respectively) 1,528,806 1,656,688 Current expected credit loss reserve (125,756) (136,224) Loans held for investment, net of current expected credit loss reserve 1,403,050 1,520,464 Investment in available-for-sale debt securities, at fair value — 8,684 Real estate owned held for investment, net ($52,634 and $58,844 related to consolidated VIEs, respectively) 130,165 139,032 Other assets ($76 and $1,991 of interest receivable related to consolidated VIEs, respectively) 17,770 16,732 Total assets $ 1,618,142 $ 1,751,206 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Secured funding agreements $ 858,176 $ 588,468 Secured term loan 89,360 128,062 Collateralized loan obligation securitization debt (consolidated VIEs) 99,921 455,839 Due to affiliate 4,061 3,790 Dividends payable 8,442 13,924 Other liabilities ($257 and $1,309 of interest payable related to consolidated VIEs, respectively) 48,614 20,991 Total liabilities 1,108,574 1,211,074 Commitments and contingencies STOCKHOLDERS' EQUITY Common stock, par value $0.01 per share, 450,000,000 shares authorized at December 31, 2025 and 2024 and 55,026,453 and 54,542,178 shares issued and outstanding at December 31, 2025 and 2024, respectively 532 532 Additional paid-in capital 820,827 816,923 Accumulated other comprehensive income (loss) — 37 Accumulated earnings (deficit) (311,791) (277,360) Total stockholders' equity 509,568 540,132 Total liabilities and stockholders' equity $ 1,618,142 $ 1,751,206 17

Consolidated Statements of Operations 1) There is no assurance dividends will continue at these levels or at all. For the Three Months Ended ($ in thousands, except share and per share data) 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 Revenue: Interest income $ 23,732 $ 23,261 $ 23,117 $ 27,480 $ 33,492 Interest expense (16,078) (14,790) (16,101) (18,189) (22,282) Net interest margin 7,654 8,471 7,016 9,291 11,210 Revenue from real estate owned 5,562 5,634 5,549 5,657 6,299 Total revenue 13,216 14,105 12,565 14,948 17,509 Expenses: Management and incentive fees to affiliate 2,420 2,420 2,430 2,567 2,571 Professional fees 678 526 673 877 663 General and administrative expenses 1,595 1,733 1,995 1,720 1,844 General and administrative expenses reimbursed to affiliate 810 781 1,024 1,003 545 Expenses from real estate owned 4,495 4,540 4,628 4,495 5,538 Total expenses 9,998 10,000 10,750 10,662 11,161 (Provision for) reversal of current expected credit losses, net (9,835) 2,190 20,150 5,340 970 Realized losses on loans — (1,643) (33,000) — (15,712) Realized gain (loss) on sale of real estate owned 2,757 — — — (2,287) Income (loss) before income taxes (3,860) 4,652 (11,035) 9,626 (10,681) Income tax expense (benefit), including excise tax 5 (1) — 281 (17) Net income (loss) attributable to common stockholders $ (3,865) $ 4,653 $ (11,035) $ 9,345 $ (10,664) Earnings (loss) per common share: Basic earnings (loss) per common share $ (0.07) $ 0.08 $ (0.20) $ 0.17 $ (0.20) Diluted earnings (loss) per common share $ (0.07) $ 0.08 $ (0.20) $ 0.17 $ (0.20) Weighted average number of common shares outstanding: Basic weighted average shares of common stock outstanding 54,951,917 54,904,862 54,856,949 54,828,751 54,498,051 Diluted weighted average shares of common stock outstanding 54,951,917 55,775,825 54,856,949 55,694,939 54,498,051 Dividends declared per share of common stock1 $ 0.15 $ 0.15 $ 0.15 $ 0.15 $ 0.25 18

Reconciliation of Net Income (Loss) to Non-GAAP Distributable Earnings (Loss) Note: Due to rounding, numbers presented may not add up to the totals provided. For the Three Months Ended ($ in thousands, except per share data) 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 Net income (loss) attributable to common stockholders $ (3,865) $ 4,653 $ (11,035) $ 9,345 $ (10,664) Stock-based compensation 893 1,024 937 1,050 1,122 Incentive fees to affiliate — — — — — Depreciation and amortization of real estate owned 1,605 2,009 2,318 2,182 2,238 Provision for (reversal of) current expected credit losses, net 9,835 (2,190) (20,150) (5,340) (970) Distributable Earnings (Loss) $ 8,468 $ 5,496 $ (27,930) $ 7,237 $ (8,274) Realized (gains) losses (2,398) 1,643 33,000 — 17,999 Distributable Earnings excluding realized (gains) losses $ 6,070 $ 7,139 $ 5,070 $ 7,237 $ 9,725 Net income (loss) attributable to common stockholders (0.07) 0.08 (0.20) 0.17 (0.20) Stock-based compensation 0.02 0.02 0.02 0.02 0.02 Incentive fees to affiliate — — — — — Depreciation and amortization of real estate owned 0.03 0.04 0.04 0.04 0.04 Provision for (reversal of) current expected credit losses, net 0.18 (0.04) (0.37) (0.10) (0.02) Basic Distributable Earnings (Loss) per common share $ 0.15 $ 0.10 $ (0.51) $ 0.13 $ (0.15) Realized (gains) losses (0.04) 0.03 0.60 — 0.33 Basic Distributable Earnings excluding realized (gains) losses per common share $ 0.11 $ 0.13 $ 0.09 $ 0.13 $ 0.18 Net income (loss) attributable to common stockholders (0.07) 0.08 (0.20) 0.17 (0.20) Stock-based compensation 0.02 0.02 0.02 0.02 0.02 Incentive fees to affiliate — — — — — Depreciation and amortization of real estate owned 0.03 0.04 0.04 0.04 0.04 Provision for (reversal of) current expected credit losses, net 0.18 (0.04) (0.37) (0.10) (0.02) Diluted Distributable Earnings (Loss) per common share $ 0.15 $ 0.10 $ (0.51) $ 0.13 $ (0.15) Realized (gains) losses (0.04) 0.03 0.60 — 0.33 Diluted Distributable Earnings excluding realized (gains) losses per common share $ 0.11 $ 0.13 $ 0.09 $ 0.13 $ 0.18 19

Diverse Sources of Financing Supports Portfolio Note: As of December 31, 2025 unless otherwise noted. Past performance is not indicative of future results. Due to rounding, numbers presented may not add up to the totals provided. 1) For the Wells Fargo, Citibank and Morgan Stanley facilities, total commitments are available subject to the pledge of additional collateral. The Citibank and Morgan Stanley facilities contain accordion provisions such that the maximum commitments may be increased to up to $425.0 million and $250.0 million, respectively, subject to the satisfaction of certain conditions, including payment of an upsize fee. 2) Amount immediately available under the CNB Facility at any given time can fluctuate based on the fair value of the collateral in the borrowing base that secures the CNB Facility. As of December 31, 2025, there was no immediate availability under the CNB Facility based on the fair value of the collateral in the borrowing base at such time. The amount immediately available under the CNB Facility may be increased to up to $75.0 million by the pledge of additional collateral into the borrowing base in accordance with the CNB Facility agreement. 3) The Secured Term Loan includes interest rate increases on advances to the following fixed rates: (i) 4.50% per annum until May 1, 2025 and (ii) after May 1, 2025 through November 12, 2026, the interest rate increases 0.25% every three months. Diversified financing sources totaling $1.3 billion with $292 million of undrawn capacity1,2 ($ in millions) Financing Sources Total Commitments Outstanding  Principal Pricing Range Mark to Credit Non Spread Based Mark to Market Secured Funding Agreements Wells Fargo Facility $600.01 $438.9 SOFR+1.40 to 3.75% Citibank Facility 325.01 269.3 SOFR+1.50 to 3.00% Morgan Stanley Facility 150.01 150.0 SOFR+1.75 to 3.50% CNB Facility 75.02 — SOFR+3.25% Subtotal $1,150.0 $858.2 Capital Markets 2021-FL4 Securitization $99.9 $99.9 SOFR+2.89% N/A Secured Term Loan 90.0 90.0 5.25% (Fixed)3 Subtotal $189.9 $189.9 Total Debt $1,339.9 $1,048.1 20

Glossary Distributable Earnings (Loss) Distributable Earnings  (Loss) is a non-GAAP financial measure that helps the Company evaluate its financial performance excluding the effects of certain transactions and GAAP adjustments that it believes are not necessarily indicative of its current loan origination portfolio and operations. To maintain the Company’s REIT status, the Company is generally required to annually distribute to its stockholders substantially all of its taxable income. The Company believes the disclosure of Distributable Earnings (Loss) provides useful information to investors regarding the Company's ability to pay dividends, which the Company believes is one of the principal reasons investors invest in the Company. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Distributable Earnings (Loss) is defined as net income (loss) computed in accordance with GAAP, excluding non-cash equity compensation expense, the incentive fees the Company pays to its Manager, depreciation and amortization (to the extent that any of the Company’s target investments are structured as debt and the Company forecloses on any properties underlying such debt), any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss), one-time events pursuant to changes in GAAP and certain non-cash charges after discussions between the Company’s manager and the Company’s independent directors and after approval by a majority of the Company’s independent directors. Loan balances that are deemed to be uncollectible are written-off as a realized loss and are included in Distributable Earnings (Loss). Distributable Earnings (Loss) is aligned with the calculation of “Core Earnings,” which is defined in the Management Agreement and is used to calculate the incentive fees the Company pays to its Manager.  Distributable Earnings excluding realized gains/losses is Distributable Earnings (Loss) further adjusted to exclude realized gains/losses. 21

End Notes 22 Q4 2025 and Full Year 2025 Company Results and Highlights; page 3 Note: As of December 31, 2025 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 gains (losses) are non-GAAP financial measures. See page 21 for Distributable Earnings (Loss) and Distributable Earnings excluding realized gains (losses) definitions and page 19 for the Reconciliation of Net Income (Loss) to Non-GAAP Distributable Earnings (Loss) and Distributable Earnings excluding realized gains/losses. 2. Book value per common share excluding CECL reserve is calculated as (i) total stockholders’ equity of $510 million plus CECL reserve of $127 million divided by (ii) total outstanding common shares of 55,026,453 as of December 31, 2025. 3. Represents realized gain of $2.4 million calculated in accordance with Distributable Earnings (Loss), a non-GAAP financial measure. Realized gain in accordance with GAAP is $2.8 million. The difference is due to the impact of accumulated depreciation and amortization. 4. As of December 31, 2025, includes $31 million of cash (inclusive of restricted amounts available to repay collateralized loan obligation securitization debt) and approximately $79 million of available financing proceeds under our secured funding agreements. 5. Source: Bloomberg stock price for ACRE as of February 5, 2026. Ares Real Estate is a Global Investment Manager and Operator; page 6 1. Investment professionals include Investment Management, Portfolio Management and Development personnel as of December 31, 2025. 2. Operating professionals include Asset Management, Construction Management, Property Management, Debt Capital Markets, Due Diligence & Quantitative Development personnel as of December 31, 2025. 3. Residential includes Multifamily, Single-Family Rental (SFR), and Senior Housing Units.

FAQ

How did Ares Commercial Real Estate (ACRE) perform in Q4 2025?

Ares Commercial Real Estate reported a Q4 2025 GAAP net loss of $(3.9) million, or $(0.07) per diluted share. However, Distributable Earnings were positive at $8.5 million, or $0.15 per diluted share, reflecting add-backs like credit loss provisions and depreciation.

What were ACRE’s full year 2025 earnings and Distributable Earnings?

For 2025, ACRE recorded a GAAP net loss of $(0.9) million, or $(0.02) per diluted share. Distributable Earnings (Loss), which adjust for non-cash items, were $(6.7) million, or $(0.12) per diluted share, highlighting pressure from credit losses and realized loan losses.

What is ACRE’s book value and CECL reserve position at December 31, 2025?

At year-end 2025, ACRE reported book value of $9.26 per common share. Excluding the $127 million CECL reserve, book value was $11.57 per share. The CECL reserve equaled 8% of loans held for investment and was heavily concentrated in higher-risk loans.

How active was ACRE’s loan origination and repayment activity in 2025?

During 2025, ACRE collected $572 million of loan repayments, freeing balance sheet capacity. It originated $486 million of new senior loan commitments and, after year-end, closed another $150 million in commitments, mainly collateralized by multifamily and mixed-use properties.

What dividends did ACRE declare around the end of 2025 and start of 2026?

On November 7, 2025, ACRE declared a $0.15 per-share cash dividend for Q4 2025, paid January 15, 2026. On February 10, 2026, it declared another $0.15 per-share dividend for Q1 2026, payable April 15, 2026 to stockholders of record on March 31, 2026.

What is the size and risk profile of ACRE’s portfolio at year-end 2025?

ACRE reported a roughly $1.7 billion portfolio of loans held for investment and REO at December 31, 2025. About 57% is in risk-rated 1–3 non-office loans, with additional exposure to office, higher-risk loans, and two REO properties that each generated approximately 9% income yields.

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