Ares Commercial REIT extends, upsizes Morgan Stanley facility

Ares Commercial Real Estate Corporation amended its credit facility with Morgan Stanley Bank, N.A. through subsidiaries ACRC Lender MS LLC and ACRC Lender MS II LLC.

Rhea-AI Filing Summary

Ares Commercial Real Estate Corporation amended its credit facility with Morgan Stanley Bank, N.A. through subsidiaries ACRC Lender MS LLC and ACRC Lender MS II LLC. The amendment extends the initial maturity date of the Master Repurchase Agreement and Securities Contract to July 16, 2029, with one optional 12‑month extension subject to lender consent, conditions and an extension fee.

The facility commitment was increased from $250 million to $350 million, and an accordion provision allows a further increase of $50 million to as much as $400 million, subject to conditions and an upsize fee. The company also describes this as a direct financial obligation and an off-balance sheet arrangement.

Insights

Credit facilities and REIT capital structure analyst

Ares Commercial REIT extended and upsized its Morgan Stanley credit line, improving committed funding capacity.

The amendment lengthens the Morgan Stanley facility’s initial maturity to July 16, 2029, with a possible 12‑month extension. Longer tenor can support stability for a commercial real estate finance platform that relies on secured funding to originate and hold loans.

The commitment increase from $250 million to $350 million, plus a $50 million accordion to $400 million, expands committed borrowing capacity, subject to conditions and fees. Actual impact will depend on how much of the larger, longer‑dated facility Ares ultimately draws and on collateral performance.

8-K Event Classification

3 items: 1.01, 2.03, 9.01

3 items

Item 1.01 Entry into a Material Definitive Agreement Business

The company signed a significant contract such as a merger agreement, credit facility, or major partnership.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial

The company incurred a new significant debt or off-balance-sheet obligation.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Facility commitment (new): $350 million Facility commitment (prior): $250 million Accordion capacity increase: $50 million +3 more

6 metrics

Facility commitment (new) $350 million Amended Morgan Stanley Master Repurchase Agreement commitment

Facility commitment (prior) $250 million Original commitment before amendment

Accordion capacity increase $50 million Additional potential increase under accordion to reach $400 million

Maximum facility size $400 million Maximum commitment if accordion is fully exercised

Initial maturity date July 16, 2029 Extended maturity of Morgan Stanley facility

Extension option length 12 months Single extension period available subject to consent and conditions

Key Terms

Master Repurchase Agreement and Securities Contract, accordion provision, off-balance sheet arrangement, extension fee, +1 more

5 terms

Master Repurchase Agreement and Securities Contract financial

"amendment to the Master Repurchase Agreement and Securities Contract"

accordion provision financial

"includes an accordion provision such that the facility commitment may be increased"

off-balance sheet arrangement financial

"an Obligation under an Off-Balance Sheet Arrangement of a Registrant"

An off-balance sheet arrangement is a financial commitment or asset that a company keeps out of its main financial statements so it does not show up as a direct asset or liability. Think of it like renting equipment or using a separate storage locker instead of putting the item in your home: the economic effects exist, but they aren’t listed on the company’s primary balance sheet. Investors care because these arrangements can hide risks, obligations or sources of cash flow that affect a company’s true financial strength and future performance.

extension fee financial

"subject to the satisfaction of certain conditions and the payment of an extension fee"

upsize fee financial

"including payment of an upsize fee"

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What change did Ares Commercial Real Estate (ACRE) make to its Morgan Stanley facility?

Ares Commercial Real Estate amended its Master Repurchase Agreement with Morgan Stanley Bank, N.A. The amendment extends the facility’s initial maturity to July 16, 2029 and increases the committed amount from $250 million to $350 million, with additional accordion capacity.

How much did Ares Commercial Real Estate (ACRE) increase its credit commitment?

The company increased the Morgan Stanley facility commitment from $250 million to $350 million. The amendment also adds an accordion feature that can boost the commitment by a further $50 million to a maximum of $400 million, subject to conditions and an upsize fee.

When does Ares Commercial Real Estate’s amended Morgan Stanley facility mature?

The amended Morgan Stanley facility now has an initial maturity date of July 16, 2029. It also includes one 12‑month extension option at the borrowers’ election, subject to Morgan Stanley’s consent, satisfaction of specified conditions, and payment of an extension fee.

What is the accordion provision in Ares Commercial Real Estate’s Morgan Stanley facility?

The accordion provision allows the facility commitment to be increased by an additional $50 million. This means total capacity may reach up to $400 million, provided certain conditions are met and an upsize fee is paid, giving the company flexibility to expand borrowing.

How is the amended Morgan Stanley facility treated for Ares Commercial Real Estate (ACRE)?

The company characterizes the amended Morgan Stanley facility as both a direct financial obligation and an obligation under an off-balance sheet arrangement. This reflects its structure as a Master Repurchase Agreement and Securities Contract used to finance eligible assets.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 03/30/2026 - 05:35 PM Learn about SEC filing dates

False000152937700015293772026-03-242026-03-24

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): March 24, 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)

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 1.01 Entry into a Material Definitive Agreement.

On March 24, 2026, ACRC Lender MS LLC and ACRC Lender MS II LLC, each a subsidiary of Ares Commercial Real Estate Corporation (the “Company”), and the Company entered into an amendment to the Master Repurchase Agreement and Securities Contract (as amended from time to time, the “Morgan Stanley Facility”) with Morgan Stanley Bank, N.A. The purpose of the amendment is to, among other things, extend the initial maturity date of the Morgan Stanley Facility to July 16, 2029 with one 12-month extension, which may be exercised at ACRC Lender MS LLC's and ACRC Lender MS II LLC’s option with the consent of Morgan Stanley Bank, N.A., subject to the satisfaction of certain conditions and the payment of an extension fee. The amendment also increased the facility commitment from $250 million to $350 million and includes an accordion provision such that the facility commitment may be increased by an additional $50 million to up to $400 million, subject to the satisfaction of certain conditions, including payment of an upsize fee.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information required by Item 2.03 contained in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

Exhibit Number						Description
10.1						Eighth Amendment to Master Repurchase and Securities Contract, dated as of March 24, 2026, by and among Morgan Stanley Bank, N.A., a national banking association, as buyer, ACRC Lender MS LLC and ACRC Lender MS II LLC, as sellers, and Ares Commercial Real Estate Corporation, as guarantor
104						Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document

2

SIGNATURE

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:			March 30, 2026						/s/ Jeffrey M. Gonzales
						Name:			Jeffrey M. Gonzales
						Title:			Chief Financial Officer and Treasurer

    

3

Filing Exhibits & Attachments

4 documents

Agreements & Contracts

• EX-10.1 EX-10.1 100.3 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 2.0 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT 22.5 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT 12.9 KB