ACRES Commercial Realty : Earnings Presentation First Quarter 2026

Published: 2026-04-30 06:45:33 ET ACR

Published on 04/30/2026 at 06:45 am EDT

April 30, 2026

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 18 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 March 31, 2026.

Definitions

Refer to page 20 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.

ACRESREIT.COM 3

Manager is focused on delivering shareholder value through EAD1 growth

Percentage of Multifamily-focused CRE in Loan Portfolio

81%

Per Share-Diluted GAAP Net Loss / EAD

($0.16) / $0.02

Percentage of CRE loan portfolio current on payments

96.2%

ACRES 2026-FL4 ($1B Transaction Size)

86.5% at S+168

1Q26 Net CRE Loan Activity

$374.4M

Book Value Per Share at March 31, 2026

$29.98

1 Refer to page 17 for the reconciliation of Net Income (Loss), a GAAP financial measure, to EAD, a non-GAAP financial measure

ACRESREIT.COM

Book value per share

Down from $30.01 in 4Q25 and up from $28.50 in 1Q25

Book Value

annual increase since ACRES acquisition in 3Q20

Financial Results

($0.16)

GAAP net loss per share-diluted

$0.02

EAD1 per share diluted

CRE Loan Activity & CRE Portfolio

$2.2B Comprising 60 loans with a

weighted average LTV of 76%

CRE loan portfolio at par value

$374.4M

of net loan fundings

14%

of the par value of the CRE loan portfolio is rated 4 or 52

96.2%

of the par value of the CRE loan portfolio is current on payments

$106.3M

of net investments in real estate and properties held for sale

Capitalization, Liquidity & NOL

$2.8B

Total capacity at March 31, 2026

$974.8M

Capacity available at March 31, 2026

$86.8M

Total liquidity at March 31, 2026

$32.1M

Net Operating Loss Carryforwards at March 31, 2026

1 Refer to page 17 for the reconciliation of Net Income (Loss), a GAAP financial measure, to EAD, a non-GAAP financial measure

2 Percentage represents the Company's economic interest in the CRE loans

ACRESREIT.COM 5

1Q26 Balance Sheet Overview

Total Assets ($B)

$2.5

Total Liquidity ($M)

$86.8

CRE Whole Loans, at par ($B)

WA Spread

$2.2

3.29%

CECL Reserve - General ($M)

Per BV Share1 / Basis Points

$19.4

$2.96/0.88%

Investments in Real Estate and Properties Held for Sale, net2 ($M) Number of Investments

$106.3

Total Borrowings, at cost ($B)

Leverage Ratio

$1.9

3.4x

Asset Specific Borrowings, at par ($B)

WA Spread

$1.7

1.81%

Corporate Debt, at par ($M)

WA Coupon

$201.5

6.30%

Preferred and Common Equity3 ($M)

Dividend %: WA Preferred / Common

$224.0/$330.9

8.76% / NA

Summary of Changes to Book Value per Share 1

$30.01

Book Value -Dec `25

$0.16

Net Loss

$0.05

Other Comprehensive Income

$0.08

Equity Compensation and Vested Shares

$29.98

Book Value -March `26

Capitalization

$2.4B

Total Capitalization

36%

Securitization Notes Payable (Non-Recourse)

29%

Term Reinvestment Financing Facility

23%

Stockholders' equity

Term warehouse financing facilities (limited recourse)

Senior secured financing facility (limited recourse)

Mortgage Payable (limited recourse)

Corporate Debt - TRUPS & 5.75% Notes (no guarantee)

1 Per share adjustments are calculated based on the share count outstanding of 6,558,865 utilized in the calculation of book value at March 31, 2026

2 Investments in real estate and properties held for sale are shown net of related financings and real estate related lease obligations

3 Includes $134.3 million of non-controlling interests

ACRESREIT.COM

CRE Loan Summary 1

Loans held for investment, at amortized cost

$2,202.8

CECL Reserves

($19.4)

CRE whole loans, floating-rate WA

1M SOFR + 3.29%

WA 1M SOFR Floor2

2.13%

WA CRE loan portfolio LTV

76%

Total number of CRE loans

Average CRE loan size, at par

$36.9

WA Risk Rating, at par

2.5

Balance by Region 1,3

Pacific

Northeast

10.3%

12.6%

Mountain

Mid Atlantic

13.0%

10.4%

West North Central

East North Central

3.7%

14.1%

Southwest

Southeast

16.9%

19.0%

Property Type 1

Loan Portfolio Activity, at par 1,4

$111

$14

$2,212

$471

$1,838

Loan Count

Loan Portfolio Dec

New loans

Payoffs and

Future Fundings

Loan Portfolio

'25

paydowns

March '26

81.5%

10.9%

4.7%

2.2%

0.7%

Multifamily Office Hotel

Mixed-Use

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

2 At March 31, 2026, all CRE whole loans are indexed to SOFR and the WA benchmark rate was 3.69%

3 Texas (15.0%) and Florida (12.0%) were the states with the highest concentrations. Based on regions identified by the National Council of Real Estate Investment Fiduciaries (NCREIF)

4 ACRES originated 9 new loan commitments and purchased two loan commitments for a total of $495.6 million during the three months ended March 31, 2026

ACRESREIT.COM 7

3.3 years 74%

Fully extended weighted average loan maturity 1,2 of the par value of the portfolio has interest rate caps or debt service reserves in place at March 31, 2026 3,4,5

Fully Extended Loan and Interest Rate Cap Maturities ($ in millions at par)

$1,000

$800

$600

$590

$626

$400

$308

$280

$350

$402

$344

$452

$200

$43

$104

$0 $27 $0

2026 2027 2028 2029 2030 2031 2032

Fully Extended Loan Maturities Interest Rate Cap Maturities

1 Excludes three loans in maturity default at March 31, 2026

2 Fully-extended maturity basis assumes 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 floating rate CRE loan portfolio

4 Interest rate caps have maturities from April 2026 through March 2029

5 Seven loans funded debt service reserves in lieu of purchasing an interest rate cap

ACRESREIT.COM 8

86%

of ACR's loans have a risk rating of 1, 2 or 3 that are

performing in line with or near underwritten expectations 1,2

56 of ACR's 60 loans, or 96%, are current on contractual payments at

March 31, 2026

W.A. Risk Rating by Collateral Type, $ at par

4Q25 W.A. Risk Rating: 2.7

1Q26 W.A. Risk Rating: 2.5

2.6

2.5

3.1

3.3

2.7

4.0

$16.0M

2.0

$1.5B

$1.8B

$103.3M

$25.0M

$47.8M

$241.4M

$235.2M

$58.4M

$15.9M

Multifamily Office Hotel Self-Storage Mixed-Use

CECL Reserve Overview

Specific CECL Reserve

General CECL Reserve

1Q26 Risk Rating Overview2

Total Reserve

Loan Count

$20.4M

$19.4M

69%

49% Risk Rated 4 - 5

51% Risk Rated 1 - 3

43% Risk Rated 4 - 5

57% Risk Rated 1 - 3

16% 14%

0%3

1 2 3 4 5

4Q25

1Q26

1 See page 21 for additional information on the risk rating definitions

2 Percentage represents the Company's economic interest in the CRE loans.

3 Amount is less than 0.5%.

ACRESREIT.COM 9

$106.3 million

of net investments in real estate and properties held for sale 1,2

388-key hotel next to a convention center

Equity investment in the north central region

Conversion to a Hilton hotel and stabilization

Acquired in April 2022

Realized Land Sale 1Q26

Select Investment Highlights

279-key hotel next to a convention center

Equity via lending activities in the northeast region

Acquired the deed in November 2020

Reclassified to held for sale as of September 30, 2022

12-acre parcel of land

Equity investment in the northeast region

Acquired in November 2021 for $14.2M

Sold in March 2026 for $20.0M

GAAP and EAD gain of $3.3M recorded in 1Q26

1 Investments in real estate comprise five properties, two of which are held at depreciated/amortized cost basis and three of which are held for sale at lower of cost or fair value. Images exclude three REO properties totaling $37.4 million3.

2 Depreciation and amortization expense on investments in real estate is $1.2 million for the 1st quarter of 2026.

3 Represents GAAP net equity basis value at March 31, 2026.

ACRESREIT.COM

Total Capitalization ($ in Millions)

$2,419.6

Corporate WACC 1

5.94%

Total Asset Specific Financing

$1,663.5

WA Asset Specific Debt Spread

SOFR + 1.81%

Term/Senior Secured Avail.

$974.8

Recourse Debt Leverage

1.8x

Total Corporate Leverage

3.4x

$ in Millions

Capitalization

Capacity

Amount3

$ Avail.

W. Avg. Coupon

Leverage

Ratio

Term Reinvestment Financing 2

$749.1

$709.2

$37.3

SOFR + 1.75%

1.3x

Term Warehouse Financing 2

500.0

18.9

480.4

SOFR + 4.00%

Senior Secured Financing 2

500.0

41.7

457.1

SOFR + 3.77%

0.1x

Mortgages Payable 2

20.2

SOFR + 3.80%

0.1x

Senior Unsecured Notes

150.0

149.7

5.75%

0.2x

Trust Preferred Securities

51.5

SOFR + 3.95%

0.1x

Total Recourse Debt

$1,970.8

$991.2

$974.8

1.8x

Securitizations 2

873.5

SOFR + 1.68%

1.6x

Total Leverage

$2,844.3

$1,864.7

$974.8

5.58%

3.4x

Preferred Equity

224.0

8.76%

Common Equity

196.6

Non-controlling interests

134.3

Total Capitalization

$2,419.6

5.94% 1

Outstanding Financing

99%

Non-Mark-to-Market

Term Warehouse Financing

47%

Securitizations

38%

Term Reinvestment Financing

Senior Unsecured Notes

Senior Secured Financing

Trust Preferred Securities

Mortgages Payable

1 Weighted average cost of capital ("WACC") calculation excludes the impact of common equity in the denominator

2 Asset-specific borrowings total $1.7 billion, of which securitizations are 53%

3 Includes $10.9 million of unamortized deferred debt issuance costs and discounts on borrowings

ACRESREIT.COM

$ in millions

Total Liquidity ($ in millions)

Leverage Ratios

3.0x

$38.2

2.7x

2.8x

3.4x

$64.7

$64.5

$107.9

$86.8

$0.6

$40.9

$23.6

$42.7

$21.9

$48.0

1.8x

$83.8

$24.1

2Q25 3Q25 4Q25 1Q26

Recourse Debt Leverage Ratio Total Leverage Ratio

Reinvestment Cash at CRE Securitiztions

CRE Term and Senior Secured Facilities Estimated Unfinanced Proceeds ¹ Unrestricted Cash

1 Includes the projected amount of proceeds available to the Company if the unfinanced loans were financed with the applicable facilities

ACRESREIT.COM

The chart below is meant to display the illustrative earnings potential of the Company. It is not meant to represent performance guidance for any period 1.

Projected Maximum CRE Loan Portfolio Size & GAAP EPS & EAD per Share

Projected maximum CRE loan portfolio size

$2,300.0

$2,500.0

$2,750.0

Target range of asset-specific leverage

3.1x

3.5x

3.8x

Illustrative return on net deployable capital

11.5%

12.5%

13.0%

CRE net interest income

$67.2

$72.7

$80.4

Less: general & administrative

(11.5)

Less: base and incentive management fees

(6.3)

Less: corporate interest expense

(13.2)

Less: GAAP to EAD Adjustments

(15.9)

(16.6)

(17.2)

Less: preferred dividends

(20.4)

Illustrative GAAP earnings

($0.1)

$4.7

$11.8

Add: other GAAP activities

6.7

7.4

7.9

Illustrative EAD

$6.6

$12.2

$19.7

Fully diluted share count

6.8

GAAP EPS

($0.02)

$0.69

$1.73

EAD EPS

$0.97

$1.78

$2.88

(1) ACR has presented this slide for illustrative purposes only. The illustrative earnings potential is based on current market conditions and assumptions with respect to general business, economic, regulatory, and financial conditions and other future events, as well as matters specific to ACR's business, all of which are difficult to predict and many of which are beyond ACR's control. As a result, there can be no assurance that any of the results will be realized or achieved. The illustration should not be relied upon as being necessarily indicative of future results, and you are cautioned not to place undue reliance on these scenarios.

ACRESREIT.COM

ACRESREIT.COM 14

(in thousands, except share and per share data)

Assets

Cash and cash equivalents

March 31, 2026

(unaudited)

$ 47,985

December 31, 2025

$ 83,768

Restricted cash

1,835

2,190

Accrued interest receivable

30,042

27,259

CRE loans

2,202,837

1,830,367

Less: allowance for credit losses

(19,431)

(20,398)

CRE loans, net

2,183,406

1,809,969

Loan receivable - due from Manager

10,300

10,375

Investments in unconsolidated entities

29,722

29,237

Properties held for sale

90,851

90,825

Investments in real estate

59,382

76,415

Right of use assets

19,415

19,545

Intangible assets

6,000

6,221

Other assets

7,167

6,560

Total Assets

$ 2,486,105

$ 2,162,364

Liabilities

Accounts payable and other liabilities

$ 7,631

$ 7,482

Management fee payable - related party

1,037

Accrued interest payable

5,068

6,814

Borrowings

1,864,671

1,544,938

Lease liabilities

46,096

45,942

Distributions payable

3,423

3,457

Accrued tax liability

Liabilities held for sale

3,181

3,131

Total Liabilities

1,931,182

1,611,772

Equity

Series C Preferred stock, par value $0.001

Series D Preferred stock, par value $0.001

Common stock, par value $0.001

Additional paid-in capital

1,142,949

1,142,410

Accumulated other comprehensive loss

(1,277)

(1,603)

Distributions in excess of earnings

(721,051)

(720,028)

Total Stockholders' Equity

420,638

420,796

Non-controlling interests

134,285

129,796

Total Equity

554,923

550,592

Total Liabilities and Equity

$ 2,486,105

$ 2,162,364

ACRESREIT.COM

(Unaudited, in thousands, except share and per share data)

For the Three Months Ended

Mar. 31, 2026

Mar. 31, 2025

Revenues

Interest income

$ 34,360

$ 28,726

Interest expense

25,114

23,123

Net interest income

9,246

5,603

Real estate income

8,547

11,366

Other revenue

Total revenues

17,824

17,002

Operating Expenses

General and administrative

3,036

3,159

Real estate expenses

9,710

13,342

Management fees - related party

1,561

1,631

Equity compensation - related party

540

815

Corporate depreciation and amortization

(Reversal of) provision for credit losses, net

(967)

(1,717)

Total operating expenses

13,899

17,248

Other Income (Expense)

Equity in earnings (losses) on unconsolidated subsidiaries

245

(492)

Gain on sale of investment in real estate

3,336

Other income

Total other (expense) income

3,604

(408)

Income (Loss) before Taxes

$ 7,529

$ (654)

Income tax expense

(1)

(76)

Net Income (Loss)

$ 7,528

$ (730)

Net income allocated to preferred shares

(5,114)

(5,313)

Net (income) loss allocable to non-controlling interest, net of taxes

(3,437)

184

Net (Loss) Income Allocable to Common Shares

$ (1,023)

$ (5,859)

Net (Loss) Income per Common Share - Basic

$ (0.16)

$ (0.80)

Net (Loss) Income per Common Share - Diluted

$ (0.16)

$ (0.80)

Weighted Average Number of Common Shares Outstanding - Basic

6,558,864

7,362,236

Weighted Average Number of Common Shares Outstanding - Diluted

6,558,864

7,362,236

ACRESREIT.COM

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

Mar. 31, 2026

Mar. 31, 2025

Net Loss Allocable to Common Shares - GAAP

$ (1,023)

$ (5,859)

Realized gain on sale of investment in real estate

(3,336)

Net loss allocable to common shares - GAAP, adjusted

$ (4,359)

$ (5,859)

Reconciling Items from Continuing Operations:

Non-cash equity compensation expense

540

815

Non-cash reversal of CRE credit losses

(554)

(1,717)

Realized net gain (loss) on core activities

3,336

(700)

Real estate depreciation and amortization

1,170

1,155

Earnings (Loss) Available for Distribution Allocable to Common Shares 1

$ 133

$ (6,306)

Earnings (Loss) Available for Distribution per Common Share - Diluted 1

$ 0.02

$ (0.86)

Weighted Average Number of Common Shares Outstanding - Diluted on EAD Allocable to Common Shares

6,839,819

7,362,236

1 See page 20 for additional information on these non- GAAP financial measures

2 Amount presented is net of the amount allocable to the non-controlling interest

ACRESREIT.COM

% of CRE Loan Portfolio(1)

CECL Reserve %

Since 2Q24, market liquidity and volatility in the commercial real estate sector have caused a decrease in the CECL reserves to 0.88% at 1Q26

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

ACRESREIT.COM 18

21%

1Q26

21%

23%

25%

20%

18%

19%

0.50%

0.00%

2Q24 3Q24 4Q24 1Q25 2Q25

Multifamily % All Other %

3Q25

CECL Reserve %

4Q25

81%

3.00%

100%

80%

79%

82%

2.50%

77%

1.00%

77%

75%

2.00%

60%

1.50%

40%

At March 31, 2026, the CRE loan portfolio is 99% floating rate loans that are indexed to one-month term SOFR with a weighted average floor of 2.13%

Quarterly Net Interest Income per Share Sensitivity to Changes in SOFR

$0.15

Ch rrelatio

$0.07

Decreased 1.00%

Decreased 0.50%

SOFR: 3.69%

No Change

Increased 0.50%

Increased 1.00%

$(0.07)

assu .00

$0.08

$0.16

$(0.10)

Decreased 1.00%

$(0.02)

Decreased 0.50%

$(0.06)

SOFR: 3.66%

No Change

Increased 0.50%

Increased 1.00%

SOFR Change

ACRESREIT.COM 19

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 excludes income (loss) from all non-core assets comprising of investments and securities owned by the Company at the initial measurement date of December 31, 2016 in commercial finance, middle market lending, residential mortgage lending, certain legacy CRE loans and other non-CRE assets designated as assets held for sale.

EAD, for reporting purposes, is defined as GAAP net income (loss) allocable to common shares, excluding (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) net income or loss from a limited partnership interest owned at the initial measurement date, (vii) net income or loss from non-core assets, (viii) real estate depreciation and amortization, (ix) foreign currency gains or losses and (x) income or loss from discontinued operations. EAD may also be adjusted periodically to exclude certain one-time events pursuant to changes in GAAP and certain non-cash items.

Although pursuant to the Fourth Amended and Restated Management Agreement the Company calculates the Manager's incentive compensation using EAD excluding incentive fees payable to the Manager, the Company includes incentive fees payable to the Manager in EAD for reporting purposes.

Secured Overnight Finance Rate:

Secured Overnight Finance Rate ("SOFR") refers to the collective one-month Term Secured Overnight Finance 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:

Leverage ratio is calculated as the respective period ended borrowings over total equity.

Asset-specific leverage ratio excludes corporate debt from the calculation.

Current Expected Credit Losses:

Current Expected Credit Losses ('CECL") refers to the provision to earnings in order to estimate expected losses.

ACRESREIT.COM 20

Disclaimer

Acres Commercial Realty Corp. published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 10:44 UTC.