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 ...

Core Viewpoint - Ares Commercial Real Estate (ACRE) reported a significant quarterly loss of $0.51 per share, which was much worse than the Zacks Consensus Estimate of a loss of $0.02, indicating a substantial earnings surprise of -2,450.00% [1] Financial Performance - The company posted revenues of $23.12 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 16.06% and down from $40.85 million in the same quarter last year [2] - Over the last four quarters, ACRE has only surpassed consensus EPS estimates once [2] Stock Performance - ACRE shares have declined approximately 23.3% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates indicating breakeven on $27.11 million in revenues for the upcoming quarter and $0.06 on $107.43 million in revenues for the current fiscal year [4][7] - The estimate revisions trend for ACRE was favorable prior to the earnings release, resulting in a Zacks Rank 1 (Strong Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] Industry Context - The REIT and Equity Trust industry, to which ACRE belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable environment for stocks in this sector [8]

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 ...

[Ares Commercial Real Estate Corporation Q2 2025 Earnings Release](index=1&type=section&id=ARES%20COMMERCIAL%20REAL%20ESTATE%20CORPORATION%20REPORTS%20SECOND%20QUARTER%202025%20RESULTS) [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Ares Commercial Real Estate Corporation reported a GAAP net loss of $11.0 million and a Distributable Earnings loss of $27.9 million for Q2 2025, while strategically strengthening its portfolio and liquidity Q2 2025 Key Financial Results | Metric | Value (in millions) | Per Diluted Share | | :--- | :--- | :--- | | GAAP Net Income (Loss) | $(11.0) | $(0.20) | | Distributable Earnings (Loss) | $(27.9) | $(0.51) | - Management's strategic focus in Q2 was on **strengthening the balance sheet** by **accelerating resolutions of risk-rated 4 and 5 loans** and **reducing exposure to office properties**[2](index=2&type=chunk) - Subsequent to quarter-end, the company closed **$43 million** of new senior loan commitments, signaling a return to investing in what it views as a more active real estate market[1](index=1&type=chunk)[2](index=2&type=chunk) - The company bolstered its liquidity, collecting **$337 million** in repayments during the first half of 2025. As of June 30, 2025, it held approximately **$178 million** in available capital, including **$94 million** in cash[2](index=2&type=chunk) [Common Stock Dividend](index=2&type=section&id=COMMON%20STOCK%20DIVIDEND) The Board of Directors declared a cash dividend of $0.15 per common share for both Q2 and Q3 2025 Dividend Declarations | Quarter | Dividend per Share | Record Date | Payment Date | | :--- | :--- | :--- | :--- | | Q2 2025 | $0.15 | June 30, 2025 | July 15, 2025 | | Q3 2025 | $0.15 | September 30, 2025 | October 15, 2025 | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail the company's financial position and performance, showing decreased assets and liabilities, and a net loss for the quarter [Consolidated Balance Sheets](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets decreased to $1.44 billion from $1.75 billion, driven by reduced loans, with total liabilities also decreasing to $914.9 million Selected Balance Sheet Data (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $89,985 | $63,799 | | Loans held for investment, net | $1,182,975 | $1,520,464 | | Total assets | $1,438,638 | $1,751,206 | | Collateralized loan obligation debt | $137,587 | $455,839 | | Total liabilities | $914,939 | $1,211,074 | | Total stockholders' equity | $523,699 | $540,132 | [Consolidated Statements of Operations](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q2 2025, the company reported a net loss of $11.0 million, or $(0.20) per share, primarily due to decreased interest income and realized loan losses, partially offset by a reversal of credit loss provisions Q2 Statement of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net interest margin | $7,016 | $13,364 | | Total revenue | $12,565 | $16,797 | | (Provision for) reversal of CECL, net | $20,150 | $2,374 | | Realized losses on loans | $(33,000) | $(16,387) | | Net income (loss) | $(11,035) | $(6,125) | | Diluted EPS | $(0.20) | $(0.11) | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) This section reconciles GAAP net loss to Distributable Earnings (Loss), a non-GAAP measure used by management to evaluate financial performance and dividend capacity - **Distributable Earnings (Loss)** is a **non-GAAP measure** defined as **GAAP net income excluding non-cash items** such as stock-based compensation, depreciation, unrealized gains/losses, and the provision for credit losses. It is intended to provide investors with a clearer view of the **company's capacity to pay dividends**[17](index=17&type=chunk) [Reconciliation of Net Income (Loss) to Distributable Earnings (Loss)](index=6&type=section&id=Reconciliation%20of%20Net%20Income%20%28Loss%29%20to%20Non-GAAP%20Distributable%20Earnings%20%28Loss%29) For Q2 2025, the GAAP net loss of $11.0 million was adjusted to a Distributable Earnings loss of $27.9 million, mainly by excluding the $20.2 million net reversal of credit loss provisions Q2 2025 Reconciliation to Distributable Earnings (Loss) (in thousands) | Line Item | Amount | | :--- | :--- | | **Net income (loss) attributable to common stockholders** | **$(11,035)** | | Stock-based compensation | $937 | | Depreciation and amortization of real estate owned | $2,318 | | Provision for (reversal of) current expected credit losses, net | $(20,150) | | **Distributable Earnings (Loss)** | **$(27,930)** | Q2 2025 Per Share Reconciliation | Line Item | Per Share Amount | | :--- | :--- | | **Net income (loss) per common share** | **$(0.20)** | | Adjustments (net) | $(0.31) | | **Basic Distributable Earnings (Loss) per common share** | **$(0.51)** |

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]

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].