Financial Data and Key Metrics Changes - GAAP net loss allocable to common shares for Q2 2025 was $732,000, translating to a loss of $0.10 per diluted share, which included $8,600,000 in interest income, an increase of $3,000,000 from the prior quarter [10] - Earnings available for distribution (EAD) for Q2 2025 was $0.04 per share, compared to a loss of $0.86 per share in Q1 2025, reflecting a $0.40 increase in net interest income and a $0.26 increase from real estate operations [11] - GAAP book value per share decreased to $27.93 on June 30 from $28.50 on March 31 [11] Business Line Data and Key Metrics Changes - The company closed one new commitment of $72,000,000 with an unfunded commitment of $1,200,000, and funded existing loan commitments of $7,300,000, resulting in a net increase to the loan portfolio of $60,500,000 [6] - The commercial real estate loan portfolio totaled $1,400,000,000 across 48 individual investments, with a weighted average risk rating of 2.9 [7] Market Data and Key Metrics Changes - The total allowance for credit losses at June 30 was $30,300,000, representing 2.18 basis points on the $1,400,000,000 loan portfolio at par [11] - The weighted average spread of floating rate loans in the portfolio is now 3.65% over one-month term SOFR rates [6] Company Strategy and Development Direction - The company aims to grow the portfolio by $300,000,000 to $500,000,000 by the end of the year, which will include capital from loan payoffs and sales of REO properties [18] - The strategy includes optimizing portfolio leverage to drive equity returns and redeploying capital into attractive commercial real estate loans [8] Management's Comments on Operating Environment and Future Outlook - Management noted a stable credit picture and expressed confidence in the ability to achieve targeted returns on equity by focusing on specific asset classes [20] - The company plans to execute another CLO in the back half of the year, although specific timing remains uncertain [25] Other Important Information - The company used $5,100,000 to repurchase 272,000 common shares at an approximate 33% discount to book value [12] - Available liquidity at June 30 was $65,000,000, consisting of $43,000,000 in unrestricted cash and $22,000,000 in projected financing available on unlevered assets [12] Q&A Session Summary Question: Timing of payoffs and asset sales for capital redeployment - Management indicated a goal to grow the portfolio by $300,000,000 to $500,000,000 through payoffs and sales of REO properties [18] Question: Opportunities in the marketplace and guidance for spreads - Management acknowledged compressed spreads in certain sectors but expressed confidence in achieving targeted returns on equity by focusing on specific assets [20] Question: Thoughts on leverage and REO financing - Management stated they could increase leverage to around 3.5 to 4 turns using non-recourse CRE CLO financing, with current properties being levered at the asset level [23] Question: Plans for a CLO in the back half of the year - Management confirmed plans to execute another CLO, with timing likely in Q4 or Q1 [25] Question: Reinstating the dividend - Management indicated that reinstating the dividend would depend on monetizing assets and ramping the portfolio to target levels [27]

Financial Performance - The company reported a GAAP net loss per share-diluted of ($0.10) for the second quarter of 2025[10, 12] - Earnings Available for Distribution (EAD) for 2Q25 was $0.04 per share, an 11.4% annual increase since the ACRES acquisition in 3Q20[10, 12] - Book value per share at June 30, 2025, was $27.93, down from $28.50 in 1Q25 and up from $27.20 in 2Q24[10, 12] Loan Portfolio & Activity - The CRE loan portfolio at par value was $1.4 billion, with a weighted average LTV of 80%[12] - Net CRE loan production for 2Q25 was $60.5 million[10, 12] - 91.4% of the par value of the CRE loan portfolio is current on payments[10, 12] - 75% of the CRE loan portfolio is focused on multifamily properties[10] Capitalization & Liquidity - Total liquidity at June 30, 2025, was $64.7 million[10, 13] - Total capacity at June 30, 2025, was $2.2 billion[13] - Capacity available at June 30, 2025, was $908.8 million[13] Real Estate Investments - Net investments in real estate and properties held for sale totaled $176.8 million[12, 34]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 30, 2025 ACRES Commercial Realty Corp. (Exact name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation) Maryland 1-32733 20-2287134 (Commission File Number) (IRS Employer Identification No.) 390 RXR Plaza Uniondale, New York 11556 (Address of Principal ...

ACR issued a full, detailed presentation of its results for the quarter ended June 30, 2025 that can be viewed at www.acresreit.com. Earnings Call Details ACR will host a live conference call on July 31, 2025 at 10:00 a.m. Eastern Time to discuss its second quarter 2025 operating results. The conference call can be accessed by dialing 1-800-267-6316 (U.S. domestic) or 1- 203-518-9783 (International), Conference ID ACRES or from the investor relations section of the Company's website at www.acresreit.com. Fo ...

Company Announcement - ACRES Commercial Realty Corp. will release its second quarter 2025 results on July 30, 2025, after market close [1] - A live conference call is scheduled for July 31, 2025, at 10:00 a.m. Eastern Time [1] Conference Call Details - The conference call can be accessed by dialing 1-800-267-6316 for U.S. domestic or 1-203-518-9783 for international calls, using Conference ID ACRES [2] - A replay of the conference call will be available until August 14, 2025, through the company's website and by phone [2] Company Overview - ACRES Commercial Realty Corp. is a real estate investment trust focused on originating, holding, and managing commercial real estate mortgage loans [3] - The company may also hold equity investments in commercial real estate properties through direct ownership and joint ventures [3] - It is externally managed by ACRES Capital, LLC, which specializes in middle market commercial real estate lending across various property types in top U.S. markets [3]

Group 1 - ACRES Commercial Realty Corp. suspended its dividends to common shareholders at the onset of the pandemic in 2020, ending a streak of continuous dividend payments since its public listing [1] - The equity market is described as a powerful mechanism that can lead to significant wealth creation or destruction over the long term [1] - Pacifica Yield aims to pursue long-term wealth creation by focusing on undervalued yet high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Financial Performance - Total revenues for the three months ended March 31, 2025, were $17,002 thousand, a decrease of 9.4% compared to $18,768 thousand for the same period in 2024[14]. - Net interest income fell to $5,603 thousand for Q1 2025, down 50.7% from $11,360 thousand in Q1 2024[14]. - The company reported a net loss of $730 thousand for the three months ended March 31, 2025, compared to a net income of $4,924 thousand for the same period in 2024[17]. - The net loss income per common share for Q1 2025 was $(0.80), compared to a net income per common share of $0.07 for Q1 2024[14]. - For the three months ended March 31, 2025, the company reported a net loss of $730,000 compared to a net income of $4,924,000 for the same period in 2024[25]. Asset and Liability Changes - Total assets decreased to $1,779,946 thousand as of March 31, 2025, down from $1,881,467 thousand at December 31, 2024, representing a decline of approximately 5.4%[9]. - Total liabilities decreased to $1,339,497 thousand as of March 31, 2025, down from $1,431,805 thousand at December 31, 2024, reflecting a reduction of approximately 6.4%[9]. - The company’s total stockholders' equity decreased to $430,099 thousand as of March 31, 2025, from $439,128 thousand at December 31, 2024, a decline of approximately 2.4%[9]. - The allowance for credit losses decreased to $31,130 thousand as of March 31, 2025, from $32,847 thousand at December 31, 2024, indicating an improvement in credit quality[9]. Investment and Loan Activity - Cash provided by investing activities was $117,735,000 for Q1 2025, significantly higher than $54,871,000 in Q1 2024[25]. - The company’s principal fundings of CRE loans were $26,515,000 in Q1 2025, compared to $11,406,000 in Q1 2024[25]. - The Company holds $1.36 billion in whole loans and $19.7 million in mezzanine loans as of March 31, 2025, with total loans held for investment amounting to $1.38 billion[67]. - The Company had unfunded loan commitments of $84,000,000 and $94,000,000 for CRE whole loans at March 31, 2025, and December 31, 2024, respectively, indicating a decrease of approximately 10.6%[70]. Real Estate and Property Investments - The company held investments in seven real estate properties as of March 31, 2025, with three included in investments in real estate and four in properties held for sale[100]. - Total net investments in real estate and properties held for sale amounted to $190,067,000 as of March 31, 2025, compared to $188,783,000 on December 31, 2024, reflecting an increase of 0.68%[103]. - The carrying value of investments in real estate was $77,143,000 as of March 31, 2025, up from $76,608,000 at the end of 2024, representing a growth of 0.70%[103]. Borrowings and Financing - As of March 31, 2025, total outstanding borrowings amounted to $1,271,071,000 with a weighted average borrowing rate of 6.47% and a remaining maturity of 4.7 years[10]. - The Company has a total of $1,541,287,000 in collateral value backing its borrowings as of March 31, 2025[10]. - The average interest rate for mortgages payable was 9.17% with a remaining maturity of 5.7 years as of March 31, 2025[10]. - The total amount at risk under the Company's financing arrangements was $314,573,000 as of March 31, 2025[134]. Stockholder and Shareholder Information - The Company did not pay any common share distributions for the three months ended March 31, 2025, and 2024[181]. - Total unrecognized compensation costs relating to unvested restricted stock was $2.8 million as of March 31, 2025, expected to be recognized over a weighted average period of 2.9 years[175]. - The Company anticipates distributing substantially all of its taxable income to stockholders to avoid corporate federal income taxes on retained income[179]. - The Company recognized stock-based compensation expense of $815,000 for the three months ended March 31, 2025, up from $477,000 in the same period of 2024[169].

Financial Data and Key Metrics Changes - GAAP net loss allocable to common shares in Q1 2025 was $5,900,000 or $0.80 per share diluted, compared to earnings of $0.48 per share in the previous quarter [11] - Earnings available for distribution (EAD) for Q1 2025 was a loss of $0.86 per share, a decrease of $1.34 from the previous quarter [11][12] - GAAP book value per share decreased to $28.5 on March 31 from $28.87 on December 31 [12] - Available liquidity at March 31 was $87,000,000, comprising $66,000,000 of unrestricted cash and $21,000,000 of projected financing available on unlevered assets [13] Business Line Data and Key Metrics Changes - Loan payoffs during the period were $115,900,000, with a net reduction of the loan portfolio of $109,600,000 [5] - The company closed one new commitment of $15,000,000 and funded existing loan commitments of $12,000,000 [5] - The weighted average spread of the floating rate loans in the $1,400,000,000 commercial real estate loan portfolio is now 3.67% over one month term SOFR rates [6] - The total allowance for credit losses at March 31 was $31,100,000, representing 2.26% of the loan portfolio [11] Market Data and Key Metrics Changes - The number of loans rated four, zero, five decreased from 12 at the end of last year to 11 at the end of this quarter [7] - The company expects to grow the portfolio by $300,000,000 to $500,000,000 by the end of the year, despite loan payoffs [19] Company Strategy and Development Direction - The company aims to optimize portfolio leverage to drive equity returns and is focused on improving credit quality while recycling capital into new investments [9][10] - The investment landscape is described as attractive, with the company actively closing new loans across various asset classes, including multifamily, student housing, self-storage, and retail [14][19] Management's Comments on Operating Environment and Future Outlook - Management indicated that Q1 2025 represents a trough in portfolio size, with expectations of ramping securitization in the second half of the year [14] - The company noted that the pipeline has been stronger than ever, with increased quoting of deals due to market volatility pushing more opportunities their way [26] Other Important Information - The company incurred a non-recurring charge of $1,500,000 related to unamortized debt issuance costs during the quarter [9] - The company sold a $20,600,000 loan at par and took a $700,000 loss on a non-performing hotel property [7][23] Q&A Session Summary Question: Could you talk a little bit about the portfolio and the payoffs that occurred during the quarter? - Management confirmed that the payoffs were expected, with five loan payoffs occurring, including refinancings and asset sales [17] Question: Should we expect more early payments and what are the opportunities for portfolio growth? - Management expects more payoffs throughout the year and anticipates net growth in the portfolio between $300,000,000 and $500,000,000 [19] Question: Can you provide details on the loan sales and the impact on earnings? - One loan was sold at par, while another non-performing hotel property was sold at 94¢ on the dollar, resulting in a $700,000 loss [23] Question: Is the increase in real estate expenses due to seasonality, and should we expect REO sales in 2025? - Management indicated that the increase is primarily due to seasonality and expects to report on asset sales in the upcoming quarters [25] Question: How is the pipeline looking given recent market volatility? - Management reported a stronger pipeline than ever, with increased quoting of deals due to some lenders moving to the sidelines [26]

Financial Data and Key Metrics Changes - GAAP net loss allocable to common shares in Q1 2025 was $5,900,000 or $0.80 per share diluted, compared to earnings of $0.48 per share in the previous quarter [11] - Earnings available for distribution (EAD) for Q1 2025 was a loss of $0.86 per share, a decrease of $0.41 from the previous quarter [12] - GAAP book value per share decreased to $28.5 on March 31 from $28.87 on December 31 [12] - Available liquidity at March 31 was $87,000,000, comprising $66,000,000 of unrestricted cash and $21,000,000 of projected financing available on unlevered assets [13] Business Line Data and Key Metrics Changes - Loan payoffs during the period were $115,900,000, with a net reduction of the loan portfolio of $109,600,000 [5] - The company closed one new commitment of $15,000,000 and funded existing loan commitments of $12,000,000 during the quarter [5] - The weighted average spread of the floating rate loans in the $1,400,000,000 commercial real estate loan portfolio is now 3.67% over one month term SOFR rates [6] - The total allowance for credit losses at March 31 was $31,100,000, representing 2.26% of the loan portfolio [11] Market Data and Key Metrics Changes - The company sold two loans during the period, including a loan for $31,700,000 in proceeds [5] - A $20,600,000 loan was sold at par on an underperforming sub-storage facility in Miami [6] - One loan was sold at 94¢ on the dollar, resulting in a $700,000 loss [24] Company Strategy and Development Direction - The company aims to optimize portfolio leverage to drive equity returns and plans to redeploy capital into attractive commercial real estate loans [8] - The investment landscape is described as attractive, with expectations of net growth in the portfolio between $300,000,000 and $500,000,000 by the end of the year [20] - The company is actively closing new loans and focusing on maintaining strong credit quality in the current portfolio [14] Management's Comments on Operating Environment and Future Outlook - Management indicated that Q1 2025 represents a trough in portfolio size, with expectations to ramp up securitization in the second half of the year [14] - The company expects to see more payoffs throughout the year through refinancings or sales of assets, indicating a healthy portfolio [20] - The pipeline for new loans is reported to be stronger than ever, with increased quoting of deals due to market volatility pushing opportunities their way [27] Other Important Information - The company incurred a non-recurring charge of $1,500,000 related to unamortized debt issuance costs during the quarter [9] - The GAAP debt to equity leverage ratio slightly decreased to 2.9 times at March 31 from 3 times at December 31 [13] Q&A Session Summary Question: Could you talk a little bit about the portfolio and the payoffs that occurred during the quarter? - Management confirmed that the payoffs were expected, with five loan payoffs occurring, primarily through refinancing [18] Question: Should we expect more early payments and what are the opportunities for portfolio growth? - Management expects more payoffs throughout the year and anticipates net growth in the portfolio despite these payoffs, focusing on multifamily and other asset classes [20] Question: Can you provide details on the loan sales and the impact on earnings? - One loan was sold at par, while another was sold at a loss of 94¢ on the dollar due to underperformance [24] Question: Is the increase in real estate expenses due to seasonality? - Management indicated that the increase is primarily due to seasonality, particularly in hotel operations, and expects a turnaround in Q2 [26] Question: How is the pipeline looking given recent market volatility? - The pipeline is reported to be stronger than ever, with many opportunities arising from market volatility [27]

Financial Performance - The company reported a GAAP net loss per share-diluted of $0.80 for 1Q25[12] - The company reported an EAD loss for 1Q25 of $0.86[12] - Book Value per Share at March 31, 2025 was $28.50, down from $28.87 in 4Q24 and up from $27.25 in 1Q24[10, 12] Loan Portfolio - The CRE loan portfolio at par value is $1.4 billion, comprising 48 loans with a weighted average LTV of 81%[12] - 89.5% of the par value of the CRE loan portfolio is current on payments[10, 12] - 77% of the CRE loan portfolio is focused on Multifamily properties[10] - Net CRE loan repayments for 1Q25 totaled $120.7 million[10, 12] Capitalization and Liquidity - Total liquidity at March 31, 2025 was $87.4 million[10, 12] - Total capacity was $2.2 billion, with $948.3 million available at March 31, 2025[12, 13] - Total Capitalization is $1.7 billion, with Stockholders' equity accounting for 26%[17] Real Estate Investments - Net investments in real estate and properties held for sale totaled $177.0 million[13, 32]