zimmytws/iStock via Getty Images When it comes to investing in real estate, there are myriad considerations around variables including geography, property types, tenancy, lease structures, and the list goes on. That said, we can boil down investment in real estate and other assets into two categories. Do you, as an investor, want to own or loan? Investments take one of two forms. Either one invests directly in target company or asset, purchasing equity. Or, one can invest by buying a financial obligation of ...

walik Mortgage REITs are getting hammered again. This reinforces why they are not buy-and-hold investments. There are times when you should hold onto shares for longer periods, but you still want to approach the position with a “total return” mindset. Investors who are only in this for the dividend are getting burned. If you’re focusing on income, look to the preferred shares. We regularly highlight preferred shares in our public articles on Seeking Alpha. The New Narrative Lately the narrative has been ...

TimAbramowitz I’ll admit this is a click-bait title. But before you turn away, the actual article is anything “butt.” No really. Let me explain… I’m sure many of you now have flatulence on the mind. In which case, here’s an excerpt from The Definitive Fart Book (1961): “Funny, everybody does it, but nobody wants anybody to know they're the somebody who: cut the cheese, passed the gas, let one rip, shot a bunny, copped a pop, popped a bubble, cranked a smoker, pinched an egg, etc.…” I don’t know about yo ...

8vFanIAres Commercial Real Estate Corporation (NYSE:ACRE) has been a core holding of mine in my passive income portfolio in the last two years. With that being said, though, I think that the most recent, negative change in the real estate investment trust’s dividend pay-out ratio is a warning sign for passive income investors. Risks, in my view, have increased to such an extent that a dividend cut in 2024 is not entirely improbable and with the stock selling at a much smaller discount to net asset value ...

Ares Commercial Real Estate Corporation (NYSE:ACRE) Q3 2023 Earnings Conference Call November 3, 2023 10:00 PM ET Company Participants John Stilmar - Managing Director, IR Bryan Donohoe - CEO Tae-Sik Yoon - CFO Conference Call Participants Sarah Barcomb - BTIG Steve DeLaney - JMP Securities Donald Fandetti - Wells Fargo Jade Rahmani - KBW Stephen Laws - Raymond James Richard Shane - JPMorgan Operator Good morning. Welcome to Ares Commercial Real Estate Corporation's Third Quarter September 30, 2023 Earnings ...

Exhibit 99.2 0 42 65 GENER 155 112 AL 42 PALET TE 4 94 109 127 127 127 Credit 0 42 65 Private Equit BUSINE y SS 2 87 133 SECTOR Real PALETT Estat E 71 126 e 163 Strategi c Initiat 120 163 ives 198 Third Quarter 2023 Earnings Presentation 0 42 65 Disclaimer GENER 155 112 ...

Financial Reporting - The unaudited consolidated interim financial statements are prepared in accordance with GAAP and reflect all necessary adjustments for fair presentation[29]. - The Company is required to reflect current expected credit losses (CECL) on outstanding balances and unfunded commitments on loans held for investment[41]. - The Company evaluates available-for-sale debt securities for other than temporary impairment (OTTI) on a quarterly basis[49]. - The effective portion of unrealized gains or losses on cash flow hedges is recorded in Other Comprehensive Income (OCI)[56]. - The Company did not recognize any impairment charges for real estate owned as of September 30, 2023, and incurred depreciation and amortization expense of $206 thousand for the three months ended September 30, 2023[94]. - The Company did not have any unrecognized tax benefits as of September 30, 2023, and does not expect this to change in the next 12 months[141]. Loan Portfolio Management - The Company monitors its loans held for investment portfolio through borrower review, economic review, property review, and market review[38]. - Loans are placed on non-accrual status when principal or interest payments are past due 30 days or more, impacting interest income recognition[39]. - As of September 30, 2023, the company's portfolio included 49 loans held for investment with an outstanding principal of approximately $2.2 billion[65]. - The Company received $1.7 million in interest payments on the mezzanine position of the Illinois loan for the three months ended September 30, 2023, which was recognized as a reduction to the carrying value of the loan[5]. - As of September 30, 2023, five loans held for investment were on non-accrual status with a carrying value of $188.3 million, an increase from three loans with a carrying value of $99.1 million as of December 31, 2022[78]. - The CECL Reserve for outstanding balances on loans held for investment increased from $108.1 million as of June 30, 2023, to $112.4 million as of September 30, 2023[84]. Revenue and Income - For the three months ended September 30, 2023, the net income attributable to common stockholders was $9,184 thousand, compared to $644 thousand for the same period in 2022, representing a significant increase[138]. - The basic earnings per common share for the three months ended September 30, 2023, was $0.17, compared to $0.01 for the same period in 2022[138]. - Interest income for the three months ended September 30, 2023, was $52.8 million, compared to $45.6 million for the same period in 2022[207]. - For the nine months ended September 30, 2023, total revenue was $75.4 million, slightly down from $76.4 million in the same period of 2022[208]. - The provision for current expected credit losses for the nine months ended September 30, 2023, was $44.4 million, compared to $26.7 million for the same period in 2022[208]. Expenses and Fees - The company's interest expense for the three months ended September 30, 2023, was $29.745 million, compared to $18.362 million for the same period in 2022, representing an increase of 62.5%[61]. - Total expenses for the three months ended September 30, 2023, were $6.6 million, down from $7.1 million in the same period of 2022[213]. - For the nine months ended September 30, 2023, related party expenses included $9.3 million in management and incentive fees, a decrease from $10.6 million in the same period of 2022[217]. - The increase in management fees for the nine months ended September 30, 2023, was primarily due to a rise in weighted average stockholders' equity resulting from a public offering of 7,000,000 shares in May 2022, generating net proceeds of approximately $103.2 million[217]. - General and administrative expenses for the three months ended September 30, 2023, increased to $1.7 million from $1.4 million in the same period of 2022, mainly due to higher stock-based compensation expenses[218]. Investments and Securities - Available-for-sale debt securities are carried at fair value, with unrealized holding gains and losses recorded in other comprehensive income[48]. - The fair value of available-for-sale debt securities was estimated at $28,136 thousand, with an amortized cost of $27,900 thousand[149]. - The carrying value of loans held for investment as of September 30, 2023, was $2,180,412 thousand, with a fair value of $2,069,304 thousand[153]. - The Company has a master repurchase facility with Wells Fargo allowing borrowing up to $450 million, which can be increased to $500 million under certain conditions[107]. - The Company has a $250.0 million master repurchase and securities contract with Morgan Stanley, with an initial maturity date extended to July 16, 2025[113]. Shareholder Activities - The Company repurchased 535,965 shares of common stock for approximately $4.6 million at an average price of $8.58 per share during the nine months ended September 30, 2023[130]. - The Company declared total cash dividends of $1.03 per share for the nine months ended September 30, 2023, totaling $56.6 million[168]. - The Company declared a regular cash dividend of $0.33 per common share for the fourth quarter of 2023, payable on January 17, 2024[205]. Management and Governance - The term of the Management Agreement ends on April 25, 2024, with automatic one-year renewal terms thereafter[164]. - ACREM is responsible for the Company's day-to-day functions, investment strategy, and portfolio management duties under the Management Agreement[158]. - The base management fee is set at 1.5% of the Company's stockholders' equity per annum, calculated and payable quarterly in cash[158].

Exhibit 99.2 0 42 65 GENER 155 112 AL 42 PALET TE 4 94 109 127 127 127 Credit 0 42 65 Private Equit BUSINE y SS 2 87 133 SECTOR Real PALETT Estat E 71 126 e 163 Strategi c Initiat 120 163 ives 198 Second Quarter 2023 Earnings Presentation 0 42 65 Disclaimer GENER 155 112 ...

Ares Commercial Real Estate Corporation (NYSE:ACRE) Q2 2023 Earnings Conference Call August 2, 2023 12:00 PM ET Company Participants John Stilmar - Managing Director, Investor Relations Bryan Donohoe - Chief Executive Officer Tae-Sik Yoon - Chief Financial Officer Conference Call Participants Rick Shane - JPMorgan Sarah Barcomb - BTIG Doug Harter - Credit Suisse Steve DeLaney - JMP Securities Jade Rahmani - KBW Derek Hewett - Bank of America Operator Good afternoon. Welcome to the Ares Commercial Real Estat ...

Financial Reporting and Accounting - The unaudited consolidated interim financial statements are prepared in accordance with GAAP and reflect all necessary adjustments for fair presentation[28]. - The Company assesses the applicability and impact of all accounting standard updates (ASUs) issued by the FASB, determining minimal impact on its financial statements[60]. - Available-for-sale debt securities are carried at fair value, with unrealized holding gains and losses recorded in other comprehensive income[46]. - The Company capitalizes and amortizes debt issuance costs over the term of the respective debt instrument, impacting interest expense[49]. - Derivative financial instruments are classified at fair value in the consolidated balance sheets, with hedge relationships formally documented[51]. - The Company did not measure a CECL Reserve on accrued interest receivable, which amounted to $14.6 million as of June 30, 2023[86]. - The fair value of available-for-sale debt securities as of June 30, 2023, was estimated at $27,970, with no Level 3 inputs used[139]. - The carrying value of loans held for investment as of June 30, 2023, was $2,228,100, with a fair value of $2,127,328[143]. Loan Portfolio and Credit Losses - The Company monitors its loans held for investment portfolio through borrower review, economic review, property review, and market review[37]. - Loans are placed on non-accrual status when principal or interest payments are past due 30 days or more, impacting interest income recognition[38]. - The Company assesses current expected credit losses (CECL) on outstanding balances and unfunded commitments, impacting earnings recorded within provision for current expected credit losses[40]. - The CECL Reserve for loans held for investment is $112.5 million, representing 466 basis points of the total loans held for investment commitment balance of $2.4 billion[76]. - The Company’s current estimate of expected credit losses increased due to high inflation and interest rates impacting risk-rated "4" and "5" loans[75]. - The provision for current expected credit losses for the three months ended June 30, 2023, was $20.1 million, compared to $7.8 million for the same period in 2022[195]. - For the six months ended June 30, 2023, the provision for current expected credit losses was $41.1 million, compared to $7.2 million in the same period in 2022, representing a 470.8% increase[211]. Real Estate and Asset Management - Real estate assets are evaluated for impairment quarterly, considering factors such as significant underperformance and economic trends[44]. - Revenue from real estate owned, associated with hotel operations, was recognized when services were rendered, contributing to the overall revenue[55]. - The Company recognized a gain of $2.2 million on the sale of a hotel property, with net sales proceeds of $40.0 million compared to a net carrying value lower than this amount as of March 1, 2022[88]. - The Company recognized a realized loss of $5.6 million upon the sale of a senior mortgage loan with an outstanding principal of $14.3 million during the six months ended June 30, 2023[73]. - The Company evaluated real estate owned for impairment on a quarterly basis, with cash flows including operating cash flows and anticipated capital proceeds[140]. Financial Performance and Income - The net interest margin for the company is influenced by interest income from loans and debt securities, with interest expense for the three months ended June 30, 2023, totaling $26.951 million, compared to $13.475 million for the same period in 2022[57][58]. - Interest expense for the six months ended June 30, 2023, was $49.950 million, up from $25.488 million in the same period of 2022[57]. - For the three months ended June 30, 2023, interest income was $51.9 million, compared to $38.6 million for the same period in 2022, reflecting a 34.5% increase[194]. - The company’s net income attributable to common stockholders for the six months ended June 30, 2023, was a loss of $8.6 million, compared to a profit of $26.2 million for the same period in 2022[195]. - The total income tax expense for the three months ended June 30, 2023, was a benefit of $46 thousand, including an excise tax expense of $(55) thousand[128]. Shareholder Activities and Dividends - During the three months ended June 30, 2023, the Company repurchased 535,965 shares of common stock for approximately $4.6 million, averaging $8.58 per share[119]. - The company declared a regular cash dividend of $0.33 per common share for Q3 2023, payable on October 17, 2023[176]. - The Company has a stock repurchase program renewed for up to $50.0 million, expected to be in effect until July 31, 2024[119]. - The company may change its dividend practice, including the potential reduction or temporary suspension of future dividends[220]. Financing and Liquidity - The outstanding balance of the Financing Agreements as of June 30, 2023, is $681.3 million, with total commitments of $1,280.0 million[91]. - The Company has total commitments of $2,413.1 million as of June 30, 2023, with $2,252.1 million funded commitments, leaving $161.1 million in unfunded commitments[117]. - As of August 1, 2023, the company had approximately $193 million in liquidity, including $118 million of unrestricted cash and $75 million available under Secured Funding Agreements[222]. - The Company has the ability to access additional liquidity through reinvestment provisions in its CLO securitizations, subject to certain conditions[220]. - Macroeconomic conditions may impair the company's ability to access financing and capital markets[220]. Management and Operational Expenses - The Company incurred management fees of $3,000,000 for Q2 2023, compared to $2,801,000 in Q2 2022, reflecting an increase of 7.1%[154]. - Management and incentive fees to affiliates for Q2 2023 were $3.3 million, a decrease from $3.8 million in Q2 2022, reflecting a 13.2% decline[201]. - Total expenses for the six months ended June 30, 2023, were $13.3 million, down 25.1% from $17.8 million in the same period of 2022[198]. - General and administrative expenses for Q2 2023 were $2.0 million, up 25.0% from $1.6 million in Q2 2022[205]. - Professional fees for Q2 2023 were $0.6 million, down 45.5% from $1.1 million in Q2 2022, indicating reduced reliance on third-party professionals[205].