Group 1 - The article promotes a portfolio strategy that generates income without the need for selling assets, aiming to simplify retirement investing [1] - It emphasizes a community-oriented approach to investing, encouraging collaboration and education among investors [2] - The service offers features such as model portfolios, buy/sell alerts, and regular market updates to support investors [2] Group 2 - The article mentions that the service includes preferred and baby bond portfolios for conservative investors [2] - It highlights the importance of monitoring investment positions and providing exclusive buy/sell alerts to members [4] - The content indicates that past performance does not guarantee future results, underscoring the need for careful investment consideration [5]

Core Insights - The article discusses the investment landscape in the real estate sector, particularly focusing on the performance and potential of various real estate investment trusts (REITs) and housing-related companies [1][2]. Group 1: Company Insights - Hoya Capital Research & Index Innovations is affiliated with Hoya Capital Real Estate, which provides investment advisory services and focuses on publicly traded securities in the real estate industry [2]. - The commentary emphasizes that the information provided is for educational purposes and does not constitute investment advice [2][3]. Group 2: Industry Insights - The real estate industry is highlighted as having unique risks associated with investments in real estate companies and housing industry companies [2]. - The article notes that past performance of market data does not guarantee future results, indicating the volatile nature of the real estate market [3].

Core Viewpoint - Ares Commercial Real Estate (ACRE) has received a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that may lead to increased stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly influenced by institutional investors [4][6]. - ACRE's earnings estimate for the fiscal year ending December 2025 is projected at $0.05 per share, reflecting a year-over-year increase of 106.1% [8]. Analyst Sentiment and Market Position - Analysts have raised their earnings estimates for ACRE, with the Zacks Consensus Estimate increasing by 108.7% over the past three months [8]. - The Zacks Rank system maintains a balanced approach, with only the top 5% of stocks receiving a 'Strong Buy' rating, indicating ACRE's strong position in earnings estimate revisions [9][10].

Group 1 - Ares Commercial reported better-than-expected EPS for the first fiscal quarter earlier in May [1] - The REIT did not fully support its dividend with distributable earnings [1] - No loan losses were realized during the quarter [1]

Core Insights - The article discusses the investment landscape in the real estate sector, particularly focusing on the performance and potential of various real estate investment trusts (REITs) and housing-related companies [1][2]. Group 1: Company Insights - Hoya Capital Research & Index Innovations is affiliated with Hoya Capital Real Estate, which provides investment advisory services and focuses on publicly traded securities in the real estate industry [2]. - The commentary emphasizes that the information provided is for educational purposes and does not constitute investment advice [2][3]. Group 2: Industry Insights - The real estate industry is highlighted as having unique risks associated with investments in real estate companies and housing industry companies [2]. - The article notes that past performance of market data does not guarantee future results, indicating the volatile nature of the real estate market [3].

Financial Data and Key Metrics Changes - For Q1 2025, the company reported GAAP net income of approximately $9.3 million or $0.17 per common share, with distributable earnings of approximately $7.2 million or $0.13 per common share [11] - The total outstanding borrowings were reduced by $228 million to $946 million, resulting in a net debt to equity ratio of 1.2 times, down from 1.9 times at the end of Q1 2024 [7][12] - The company's liquidity position increased to $147 million as of May 2, 2025, representing a 15% increase since December 31, 2024 [7] Business Line Data and Key Metrics Changes - The company collected $37 million in repayments across nine loans, double the amount from the previous quarter, marking the highest percentage of repayments in the company's history [6][12] - The office loan portfolio was reduced by 25% since March 31, 2024, decreasing the total outstanding balance to $585 million [8] Market Data and Key Metrics Changes - The company maintained stable credit quality with no new risk-rated four or five loans in Q1 2025, and the book value per share remained consistent at $9.88 [11][12] - The CECL reserve declined to $140 million, approximately 9.9% of the total outstanding principal balance of loans held for investment [15] Company Strategy and Development Direction - The strategic goal is to better demonstrate book value, with plans to selectively originate new loans, buy back common shares, repay debt, and fund other strategic initiatives [9][10] - The company aims to leverage its strengthened balance sheet to navigate uncertain markets and enhance shareholder value [10][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the office market, particularly in Chicago, and indicated that the current reserve levels are reflective of the asset's risk [24][25] - The company expects to see a measured cadence of resolutions and repayments, but acknowledges the unpredictability of the market [27][28] Other Important Information - A regular cash dividend of $0.15 per common share was declared for Q2 2025, with an annualized dividend yield of over 14% based on the current stock price [16] - The company has a $50 million buyback authorization in place through July 2025, which is being evaluated as part of capital allocation choices [37] Q&A Session Summary Question: Update on the Chicago office loan - Management noted that while the asset has positive leasing momentum, the overall market dynamics have negatively impacted its valuation, leading to a conservative reserve approach [24][25] Question: Anticipated cadence for resolving non-performing loans - Management indicated that predicting the cadence is difficult due to market volatility, but they are prepared to accelerate resolutions when appropriate [27][28] Question: Plans for regrowing the loan portfolio - Management emphasized a selective approach to new lending opportunities, waiting for market stabilization before making significant moves [32][35] Question: Buyback authorization and capital allocation - Management confirmed a $50 million buyback authorization is in place and is being considered as part of their capital allocation strategy [37] Question: Update on the Life Science Boston project - Management acknowledged challenges in the Life Science market and indicated ongoing discussions with the sponsor, with a cautious reserve approach [40][41] Question: Clarification on strategic initiatives - Management clarified that strategic initiatives include evaluating share buybacks and new investments, particularly in light of recent acquisitions [42][45]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported GAAP net income of approximately $9.3 million or $0.17 per common share, with distributable earnings of approximately $7.2 million or $0.13 per common share [10] - The company collected $3,700,000 in repayments across nine loans, double the amount from the previous quarter, marking the highest repayments as a percentage of outstanding principal balance in the company's history [5][11] - Outstanding borrowings were reduced by $228 million to $946 million, resulting in a net debt to equity ratio of 1.2 times, down from 1.9 times at the end of Q1 2024 [5][11] Business Line Data and Key Metrics Changes - The company reduced its office loan portfolio by 25% since Q1 2024, decreasing the total outstanding balance to $585 million [6] - There were no new migrations to risk-rated four or five loans in Q1 2025, indicating improved credit quality across the portfolio [10][11] Market Data and Key Metrics Changes - The total CECL reserve declined to $140 million as of Q1 2025, a decrease of approximately $5 million from the previous quarter, representing about 9.9% of the total outstanding principal balance of loans held for investment [14] Company Strategy and Development Direction - The company aims to demonstrate book value and is positioned to selectively originate new loans, repurchase common shares, repay debt, and fund strategic initiatives [8][9] - The acquisition of GCP has expanded the company's real estate team, enhancing its ability to execute its strategy and deliver shareholder returns [18][45] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the economic environment but expressed confidence in the company's capabilities and balance sheet strength to build shareholder value [18][19] - The company is being selective in new lending opportunities, waiting for market stabilization before expanding its loan portfolio [32][34] Other Important Information - The Board declared a regular cash dividend of $0.15 per common share for Q2 2025, with an annualized dividend yield of over 14% based on the current stock price [15] Q&A Session Summary Question: Update on the Chicago office loan - Management indicated that while the asset has positive leasing momentum, market dynamics have negatively impacted its valuation, maintaining a conservative reserve [22][23] Question: Anticipated cadence for resolving non-performing loans - Management noted that predicting the cadence of resolutions is challenging due to market volatility, but they are prepared to accelerate resolutions when appropriate [25][26] Question: Plans for loan portfolio growth - Management confirmed they are being patient and selective regarding new investments, with a focus on evaluating opportunities as the market stabilizes [30][32] Question: Buyback authorization and capital allocation - The company has a $50 million buyback authorization in place and is evaluating the use of additional capital for stock repurchases [37] Question: Update on the Life Science Boston project - Management acknowledged challenges in the market but indicated ongoing discussions with the sponsor and a cautious approach to reserves [40][41] Question: Clarification on strategic initiatives - Management clarified that strategic initiatives include evaluating share buybacks and new investments, particularly in light of the GCP acquisition [42][45]

Company Performance - Ares Commercial Real Estate (ACRE) reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of a loss of $0.07 per share, and showing improvement from a loss of $0.62 per share a year ago, resulting in an earnings surprise of 285.71% [1] - The company posted revenues of $27.48 million for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 17.73% and decreased from year-ago revenues of $44.03 million [2] - Over the last four quarters, ACRE has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during this period [2] Stock Outlook - Ares Commercial Real Estate shares have declined approximately 30.1% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $31.75 million, and for the current fiscal year, it is -$0.17 on revenues of $126.6 million [7] - The estimate revisions trend for ACRE is currently unfavorable, leading to a Zacks Rank of 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The REIT and Equity Trust industry, to which ACRE belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting that stocks in the top 50% of Zacks-ranked industries outperform those in the bottom 50% by more than 2 to 1 [8]

Exhibit 99.2 First Quarter 2025 Earnings Presentation 0 42 65 156 110 2 3 93 109 127 127 127 GENERAL PALETTE 0 42 65 2 87 133 71 126 163 120 163 198 Credit Private Equity Real Estate Secondary Solutions BUSINESS SECTOR PALETTE 192 212 229 Strategic Initiatives Disclaimer Statements included herein may constitute "forward-looking statementsˮ 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 ...

Loan Portfolio and Investment - As of March 31, 2025, the company's portfolio included 27 loans held for investment with an outstanding principal of $1.4 billion, down from an aggregate originated commitment of approximately $1.5 billion[55]. - During the three months ended March 31, 2025, the company funded approximately $7.2 million and received repayments of $306.8 million of outstanding principal[55]. - 68.3% of the company's loans have Secured Overnight Financing Rate (SOFR) floors, with a weighted average floor of 0.96%[55]. - As of March 31, 2025, the total loans held for investment portfolio amounted to $1,355,264, with an outstanding principal of $1,404,409, reflecting a decrease from $1,656,688 and $1,698,506 as of December 31, 2024[56]. - Senior mortgage loans accounted for $1,336,798 in carrying amount and $1,381,528 in outstanding principal as of March 31, 2025, with a weighted average remaining life of 1.0 years[56]. - Subordinated debt and preferred equity investments had a carrying amount of $18,466 and an outstanding principal of $22,881 as of March 31, 2025, with a weighted average remaining life of 2.0 years[56]. - The company holds a diversified portfolio of loans across various locations, with significant amounts in New York and California[59]. - The carrying value of loans held for investment as of March 31, 2025, was $1,355,264,000, compared to $1,213,321,000 as of December 31, 2024, indicating an increase of approximately 11.7%[117]. Financial Performance - Net income attributable to common stockholders for the three months ended March 31, 2025, was $9.3 million, compared to a net loss of $12.3 million for the same period in 2024[105]. - Basic earnings per common share for the three months ended March 31, 2025, was $0.17, improving from a loss of $0.23 per share in the same period of 2024[105]. - Total revenue for the three months ended March 31, 2025, was $14,948,000, down 20.4% from $18,692,000 in 2024[146]. - Revenue from real estate owned increased to $5,657,000 in Q1 2025, up 62.6% from $3,478,000 in Q1 2024[146]. - The provision for expected credit losses was $5,340,000 in Q1 2025, a decrease of 76% compared to $22,269,000 in Q1 2024[146]. Credit and Risk Management - The current expected credit losses (CECL) reserve is deducted from the amortized cost basis of the company's loans held for investment, impacting earnings based on expected credit loss estimates[44]. - Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more, affecting interest income recognition[42]. - The CECL Reserve for loans held for investment is $139.6 million, representing 945 basis points of the total loans held for investment commitment balance of $1.5 billion[66]. - The CECL Reserve related to outstanding balances on loans held for investment decreased from $136,224 thousand to $131,433 thousand, a reduction of approximately 3.1%[68]. - The Company continuously evaluates the credit quality of each loan, assigning risk ratings from 1 (very low risk) to 5 (impaired/loss likely) based on various risk factors[70]. - The Company is subject to credit risk related to its CRE loans and seeks to manage this risk through due diligence and ongoing portfolio reviews[204]. Real Estate and Asset Management - The company recognizes rental revenue on a straight-line basis over the lease term when collectability is probable, including amortization of intangible assets related to above- and below-market leases[52]. - The company evaluates real estate assets held for investment for impairment on a quarterly basis, considering factors such as significant underperformance and economic trends[48]. - The total real estate owned held for investment as of March 31, 2025, is $144,822 thousand, a slight increase from $144,808 thousand at December 31, 2024[77]. - The office property acquired on September 19, 2024, was valued using capitalization rates ranging from 6.4% to 11.0% and discount rates from 14.0% to 16.0%[114]. - The mixed-use property acquired on September 8, 2023, was valued using capitalization rates ranging from 6.4% to 8.3% and discount rates from 8.0% to 9.5%[115]. - No impairment charges have been recognized for either the office property or the mixed-use property as of March 31, 2025[114][115]. Debt and Financing - The outstanding balance of the Financing Agreements as of March 31, 2025, is $794,405,000, an increase from $718,468,000 as of December 31, 2024[83]. - The Wells Fargo Facility has an outstanding balance of $230,385,000 with a total commitment of $450,000,000, while the Citibank Facility has an outstanding balance of $294,495,000 with a total commitment of $325,000,000[83]. - The Company has a total commitment of $120,000,000 under the Secured Term Loan, with an outstanding balance of $120,000,000 as of March 31, 2025[83]. - The maximum commitment for the Citibank Facility may be increased to $425,000,000, subject to certain conditions[86]. - The Company has extended the maturity date of the CNB Facility to March 10, 2026, with an interest rate based on SOFR plus 3.25%[88]. - The Company has a Secured Term Loan of $120.0 million with a maturity date of November 12, 2026, and a fixed interest rate of 4.50% per annum until May 1, 2025, after which it increases by 0.25% every three months[91]. Dividends and Shareholder Returns - The Company declared total cash dividends of $8,353,000 for the three months ended March 31, 2025, compared to $13,802,000 for the same period in 2024, reflecting a decrease of 39.5%[132]. - The company declared a regular cash dividend of $0.15 per common share for Q2 2025, payable on July 15, 2025[148]. - The Company did not repurchase any shares under its $50.0 million stock repurchase program during the three months ended March 31, 2025, and 2024[95]. Management and Related Party Transactions - The base management fee for ACREM is set at 1.5% of the Company's stockholders' equity per annum, calculated quarterly[121]. - The incentive fee for ACREM is based on the Company's Core Earnings, with no incentive fees incurred for the three months ended March 31, 2025[122]. - The term of the Management Agreement with ACREM ends on April 25, 2026, with automatic one-year renewal terms thereafter[127]. - For the three months ended March 31, 2025, the total related party costs incurred by the Company were $3,598,000, a decrease of 8.8% from $3,944,000 in the same period of 2024[128]. Market and Economic Conditions - The company continues to monitor macroeconomic conditions and their potential impacts on its loans, maintaining regular communication with borrowers[60]. - Continued weakness in financial markets could adversely affect the company's lenders, impacting their willingness to provide financing[217]. - The company faces real estate risk due to factors such as economic conditions, local real estate markets, and rising operating costs, which could affect cash flow performance[218]. - An immediate increase of 100 basis points in the 30-day SOFR could result in an estimated increase in net income of $2.2 million[210].