Acres Commercial Realty Corp. · NYSE:ACR
Acres Commercial Realty — Q3 2026 Earnings Presentation
29 slides from Acres Commercial Realty's earnings presentation, Nov 4, 2026
Slide 1: Third Quarter 2026 Earnings Presentation
Third Quarter 2026 Earnings Presentation November 4, 2026
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are not historical facts but rather are based on ACRES Commercial Realty Corp.’s (“ACR’s” or the “Company’s”) current beliefs, a
Slide 3: Disclaimer: Forward-Looking Statements (continued) and Notes
DISCLAIMER Forward-Looking Statements (continued) Notes on Presentation In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation This presentation contains information regarding financial results that is calculated and presented on the ba
Slide 4: ACR Is Now Internally Managed
ACR IS NOW INTERNALLY MANAGED On August 6, ACRES Commercial Realty completed the acquisition of its manager and is now an internally managed mortgage REIT WHAT ACR SHAREHOLDERS OWN TODAY – MULTIPLE BUSINESS LINES ACRES Commercial Realty (ACR) CRE PRINCIPAL INVESTING INVESTMENT MANAGEMENT INSURANCE $
Slide 5: Why Internalize Now?
WHY INTERNALIZE NOW? ACRES Management Sees a Compelling Investment Opportunity SOUND FUNDAMENTALS + LARGE AND GROWING OPPORTUNITY SET + STRONG FINANCING MARKETS Positive Supply / Demand dynamics Significant maturities in the CRE Financing Markets Open across ACRES’ target markets markets over next t
Slide 6: ACRES Mission: EAD Growth + Stability
ACRES MISSION: EAD GROWTH + STABILITY FIVE DRIVERS OF EAD GROWTH Optimize the balance sheet 1 Increase net interest margin 10-12% Target NIM Reduce leverage, Reduce Investment Risk, Increase Liquidity Increase fee-paying AUM 2 3rd Party Capital Raise ACRES MANAGEMENT MISSION ACRES Mortgage Fund and
Slide 7: Third Quarter 2026 Results
THIRD QUARTER 2026 RESULTS FINANCIAL RESULTS Per share, 3Q26 ($5.16) ($2.64) $16.81 GAAP net loss per share–diluted EAD(1) per share–diluted Book value per share BALANCE SHEET AND NET INTEREST INCOME INVESTMENT MANAGEMENT LIQUIDITY, CAPITAL & TAX ASSETS $2.1B CRE loan portfolio(2) at par value $2.5B
Slide 8: Book Value Per Share: Pre- and Post-Close
BOOK VALUE PER SHARE: PRE- AND POST-CLOSE GAAP book value per share, before and after the internalization(1) −$8.62 per share from the transaction $26.76 −$5.77 −$1.83 −$1.02 −$0.63 −$0.62 −$0.08 $16.81 Book Value, Transaction Transaction Non-Cash Option Depreciation & CECL Other Book Value, 2Q26 Sh
Slide 9: Leadership Overview
LEADERSHIP OVERVIEW Highly experienced leadership team with significant ownership in ACR ACR MANAGEMENT TEAM Andrew Fentress Mark Fogel Marty Reasoner Chairman President Managing Director of Origination • Head of Originations • ACR Board Chairman • ACR Board member • 15 years of experience • Board m
Slide 10: Key Takeaways
KEY TAKEAWAYS The new ACRES is positioned to create EAD for shareholders EAD TARGET + STABLE CREDIT + LONG TERM LIABILITIES THREE SOURCES OF REVENUE ALIGNED, PROVEN MANAGEMENT $2–$31 Balance Sheet NIM EAD per share target Principal Investing 45% of ACR shares owned by ACRES employees and directors 8
Slide 11: Business Lines
BUSINESS LINES ACRESREIT.COM 11
Slide 12: Merger Completed – CRE Principal Investing Balance Sheet
MERGER COMPLETED – BUSINESS LINE OVERVIEW CRE PRINCIPAL INVESTING – BALANCE SHEET PHILOSOPHY OF THE BALANCE SHEET: CORE PRINCIPLES Highly liquid High-quality Conservative Prudent Optimize leverage assets liability structure management of for NIM / ROE capital OVERARCHING PHILOSOPHY Adjust to a capit
Slide 13: Merger Completed – Investment Management
MERGER COMPLETED – BUSINESS LINE OVERVIEW INVESTMENT MANAGEMENT ACRES HAS A 13+ YEAR TRACK RECORD OF MANAGING CAPITAL ON BEHALF OF INSTITUTIONS AMF New Fund SMA Opportunistic ACRES Mortgage Fund Launch of new vehicle Separately managed accounts Portfolio and asset purchases • 7+ year track record •
Slide 14: Investment Management – Performance & Asset Management Summary
INVESTMENT MANAGEMENT – PERFORMANCE & ASSET MANAGEMENT SUMMARY $8.5B originated since 2014, managed and serviced in-house INVESTM ENT STRATEGY National first mortgages of $15M–150M on ‘A’ class assets with ‘A’ sponsors in ‘A’ markets, in simple structures that seek to deliver stable income TRACK REC
Slide 15: Merger Completed – Insurance
MERGER COMPLETED – BUSINESS LINE OVERVIEW INSURANCE INSURANCE PROVIDES OUR SPONSORS WITH A VALUABLE SERVICE AND A BUSINESS TO COMPOUND CAPITAL Lower-cost insurance Commission share Premium income Compounding capital Provides lower-cost ACRES shares in Ability to earn premium Compounds dollars over i
Slide 16: 3Q26 Financial Results
3Q26 FINANCIAL RESULTS ACRESREIT.COM 16
Slide 17: CRE Principal Investing - Portfolio Overview
CRE PRINCIPAL INVESTING - PORTFOLIO OVERVIEW CRE LOAN SUMMARY¹ BALANCE BY REGION¹,³ Loans held for investment, at amortized cost $2,139.4 Pacific Northeast CECL reserves ($29.4) 7.3% 15.0% CRE whole loans, floating-rate WA 1M SOFR + 3.21% Mountain Mid Atlantic WA 1M SOFR floor² 2.33% 13.6% 11.1% WA
Slide 18: CRE Principal Investing - Portfolio Maturity Profile
CRE PRINCIPAL INVESTING - PORTFOLIO MATURITY PROFILE 3.1 years Fully extended loan and interest rate cap maturities, $M at par 1,2 ■ Loan maturities ■ Interest rate cap maturities Fully extended weighted average loan maturity $637 $632 $532 62% 3,4,5 $469 of portfolio par value is covered by interes
Slide 19: CRE Principal Investing - Risk Ratings and CECL Reserves
CRE PRINCIPAL INVESTING - RISK RATINGS AND CECL RESERVES 86% ofunderwritten ACR’s loans have a risk rating of 1, 2 or 3 that are performing in line with or near expectations¹‧²‧³ 96% 52 of ACR’s 56 loans are current on contractual payments at September 30, 2026¹ W.A. RISK RATING BY COLLATERAL TYPE,
Slide 20: CRE Principal Investing - Leverage and Liquidity Trend
CRE PRINCIPAL INVESTING - LEVERAGE AND LIQUIDITY TREND LEVERAGE RATIOS TOTAL LIQUIDITY ($ IN MILLIONS)¹ 3.4x 24.1 3.2x 2.8x 2.8x 42.9 2.7x 38.2 41.6 83.8 1.8x 48.0 53.3 1.6x 41.1 0.9x 4Q25 1Q26 2Q26 3Q26 Reinvestment cash at CRE securitizations CRE term and senior secured facilities estimated unfina
Slide 21: CRE Principal Investing - CECL Trend Analysis
CRE PRINCIPAL INVESTING - CECL TREND ANALYSIS The CECL reserve fell to 0.88% in 1Q26 as loans resolved, then rose to 1.37% at 3Q26 on a more conservative macroeconomic outlook, with portfolio risk ratings unchanged. CECL reserve, % of CRE loans at par Multifamily share of CRE portfolio 2.5% 82% 81%
Slide 22: CRE Principal Investing - Benchmark Sensitivity Analysis Trend
CRE PRINCIPAL INVESTING - BENCHMARK SENSITIVITY ANALYSIS TREND At September 30, 2026, the CRE loan portfolio is 97% floating rate loans that are indexed to one-month term SOFR with a weighted average floor of 2.33% Quarterly Net Interest Income per Share Sensitivity to Changes in SOFR September 30,
Slide 23: Appendix
COMMERCIAL REALTY APPENDIX iy ZZ y A l Ble wy) Ee jag |
Slide 24: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) Sep. 30, 2026 December 31, 2025 Assets (unaudited) Cash $ 55,393 $ 85,958 Accrued interest receivable 37,006 27,259 CRE loans 2,139,412 1,830,367 Less: allowance for credit losses (29,409) (20,398) CRE loans, net 2
Slide 25: Condensed Consolidated Statements of Operations
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except share and per share data) For the Three Months Ended For the Nine Months Ended Revenues Sep. 30, 2026 Sep. 30, 2025 Sep. 30, 2026 Sep. 30, 2025 Interest income $ 37,685 $ 28,288 $ 110,445 $ 85,845 Interest expense 24,89
Slide 26: Earnings Available for Distribution
EARNINGS AVAILABLE FOR DISTRIBUTION 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
Slide 27: Key Definitions
KEY DEFINITIONS 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 ind
Slide 28: Other Disclosures
OTHER DISCLOSURES Commercial Real Estate Loans Risk Ratings CRE loans are collateralized by a diversified mix of real estate properties and are assessed for credit quality based on the collective evaluation of several factors, including but not limited to: collateral performance relative to underwri
Slide 29: Contact Information
CONTACT INFORMATION ACRES Commercial Realty Corp. is a real estate investment trust that is primarily focused on originating, underwriting and managing commercial real estate mortgage loans. ACRES invests nationwide in the middle market with a focus on multifamily, student housing, hospitality, indu
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