Financial Data and Key Metrics Changes - The company reported a GAAP net loss of approximately $11 million or $0.20 per diluted common share for Q2 2025 [16] - Distributable earnings for Q2 2025 were a net loss of approximately $28 million or $0.51 per diluted common share, including a realized loss of $33 million related to the exit of a loan [16] - The net debt to equity ratio, excluding CECL, was maintained at 1.2x at the end of Q2 2025, stable quarter over quarter but down from 1.9x year over year [18] - Outstanding borrowings were reduced to $889 million at the end of the quarter, a decrease of 6% quarter over quarter and 39% year over year [18] - The total CECL reserve declined to $119 million as of June 30, 2025, a decrease of approximately $20 million from the previous quarter [20] Business Line Data and Key Metrics Changes - Office loans were reduced to $524 million, a decrease of 10% quarter over quarter and 30% year over year, driven by repayments and active asset management [5] - The company exited a $51 million office life sciences loan, taking a $33 million realized loss, which contributed to a 50% decrease in future funding commitments [6][7] - The company upgraded a risk-rated $356 million loan collateralized by a hotel property to a risk-rated two loan based on improved occupancy and cash flow [11] Market Data and Key Metrics Changes - The company noted improved leasing fundamentals and more positive capital markets in the office sector, which may impact the rate of resolutions [5] - The risk-rated one to three loans, primarily collateralized by multifamily, industrial, and self-storage properties, continued to perform well [10] Company Strategy and Development Direction - The company aims to enhance earnings and dividend coverage by accelerating resolutions on higher-risk assets while maintaining balance sheet integrity [13] - The company plans to increase origination activity as it collects repayments and addresses risk-rated loans [5] - The company is optimistic about the stabilization and gradual improvement of the commercial real estate market, particularly due to valuation stability [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that quarter-to-quarter earnings results may vary but remains confident in the company's strategy and execution [22] - The company expects to see a gradual improvement in rent growth over the next three to five years, driven by supply-demand imbalances [45] - Management expressed that the current income profile of lending remains attractive despite market volatility [46] Other Important Information - The Board declared a regular cash dividend of $0.15 per common share for Q2 2025, with an annualized dividend yield above 13% [21] - The company emphasized the importance of liquidity to enable greater optionality for resolutions and opportunistic investments [19] Q&A Session Summary Question: Is the second quarter the trough for net revenue and net interest income? - Management indicated that they expect to originate additional loans moving forward, which should absorb any repayments and help rebuild net interest income [28][29] Question: Will new originations be smaller in size going forward? - Management acknowledged that the average ticket size for new originations may come down, but they will maintain a focus on institutional assets [64] Question: Can you explain the mechanics of the $33 million realized loss and the CECL release? - Management clarified that the $51 million loan had a $19 million reserve, resulting in a net difference affecting book value of $14 million [60][61] Question: What is the company's view on the competitiveness of the CRE lending markets? - Management noted relative stability in the market and highlighted attractive return on equity opportunities despite some consolidation in the sector [46]

Exhibit 99.2 Second 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 futur ...

Ares Commercial Real Estate (ACRE) came out with a quarterly loss of $0.51 per share versus the Zacks Consensus Estimate of a loss of $0.02. This compares to a loss of $0.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2,450.00%. A quarter ago, it was expected that this real estate investment trust would post a loss of $0.07 per share when it actually produced earnings of $0.13, delivering a surprise of +285.71%.Over the l ...

Commission File No. 001-35517 UNITED STATES SECURITIES AND EXCHANGE COMMISSION ARES COMMERCIAL REAL ESTATE CORPORATION Washington, D.C. 20549 ___________________________________________________________________ (Exact name of Registrant as specified in its charter) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the ...

NEW YORK—(BUSINESS WIRE)—Ares Commercial Real Estate Corporation (the "Company") (NYSE:ACRE), a specialty finance company primarily engaged in directly originating and investing in commercial real estate assets, reported generally accepted accounting principles ("GAAP") net income (loss) of $(11.0) million or $(0.20) per diluted common share and Distributable Earnings (Loss) of $(27.9) million or $(0.51) per diluted common share for the second quarter of 2025. (1) "In the second quarter, we continued to use ...

Group 1 - Ares Commercial Real Estate Corporation (NYSE: ACRE) is rated a Hold for income investors interested in commercial mortgage real estate investment trusts (REITs) [1] - The company has a market capitalization of $244 million, which is considered small compared to other peer REITs [1] Group 2 - The founder and principal of Endurance Capital Management, David A. Johnson, has over 30 years of investment experience and holds multiple advanced degrees in finance and business [1]

Core Insights - Ares Commercial Real Estate Corporation (NYSE: ACRE) faced significant declines in dividend coverage and loan performance last year, leading to two dividend cuts, with the most recent reduction being 40% to $0.15 per share [1] Financial Performance - The company experienced a substantial deterioration in its financial metrics, particularly in dividend coverage and loan performance [1]

Group 1 - Ares Commercial Real Estate Corporation (ACRE) is experiencing significant activity in the options market, particularly with the Aug 15, 2025 $10.00 Call showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a substantial price change [2] - Ares Commercial Real Estate currently holds a Zacks Rank 3 (Hold) in the REIT and Equity Trust industry, which is in the bottom 21% of the Zacks Industry Rank, with recent analyst estimates indicating a shift from a loss of one cent per share to a loss of two cents per share for the current quarter [3] Group 2 - The high implied volatility surrounding Ares Commercial Real Estate may indicate a developing trading opportunity, as options traders often seek to sell premium on options with elevated implied volatility to capitalize on time decay [4]

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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].