• It's like Wells Fargo's commercial real estate lending arm, but as a standalone REIT that focuses solely on financing commercial properties.
• Imagine a company like Simon Property Group (a major commercial property owner), but instead of owning buildings, ACRES lends money for commercial real estate mortgages.

• Commercial Real Estate Mortgage Loans: The origination, holding, and management of various types of mortgage loans secured by commercial properties.
• Mezzanine Debt Investments: Providing hybrid debt-equity financing to commercial real estate projects, ranking below senior debt but above equity.
• Preferred Equity Investments: Investments in the preferred equity of commercial real estate entities, offering priority in profit distribution and and asset liquidation.
• Commercial Mortgage-Backed Securities (CMBS): Investing in securities backed by pools of commercial real estate mortgage loans.
• Commercial Real Estate Equity Investments: Direct investments in the ownership interests of commercial real estate properties.

ACRES Commercial Realty Corp. (ACR) operates as a real estate investment trust (REIT) focused on originating, holding, and managing commercial real estate mortgage loans and other related debt and equity investments. Given this business model, ACR's "customers" are the borrowers and counterparties in these commercial real estate transactions.

ACR primarily provides financing and capital to other companies involved in the commercial real estate sector. Due to the nature of their lending and investment activities, ACR does not typically disclose specific names of its borrowers or investment partners as "major customers" in the way a traditional product or service company might. Instead, their customer base consists of a diverse range of commercial real estate entities. The primary categories of companies that ACR serves include:

1. Commercial Real Estate Developers: Companies engaged in the development, redevelopment, or construction of various commercial property types, such as office buildings, multifamily residential complexes, industrial facilities, and retail centers, seeking financing for their projects.
2. Commercial Property Owners and Operators: Entities that own, manage, and operate income-producing commercial real estate assets, requiring capital for property acquisitions, refinancing existing debt, or making improvements to their portfolios.
3. Real Estate Investment Sponsors and Funds: Private equity real estate firms, institutional investors, or other investment vehicles that acquire and manage portfolios of commercial properties, seeking debt or preferred equity capital to support their investment strategies.

Mark Fogel, President and Chief Executive Officer

Mark Fogel has served as President, Chief Executive Officer, and a director of ACRES Commercial Realty Corp. since its acquisition by ACRES Capital, LLC in July 2020. He is also the President and Chief Executive Officer of ACRES Capital, LLC, which he founded in 2012 and which acts as the external manager for ACRES Commercial Realty Corp. Mr. Fogel possesses over 20 years of experience in financing transitional, middle-market commercial real estate assets. His career includes executive roles at various prominent commercial real estate finance companies, where he was responsible for loan production, asset management, and special servicing for a diverse portfolio of investments nationwide. With nearly 30 years of extensive industry experience in commercial real estate finance, he previously worked in the Asset Management and Development group at Forest City Ratner from January 1996 to June 1997. He began his real estate career in June 1994 as a Finance and Real Estate Property Manager at General Growth Properties.

Eldron Blackwell, Chief Financial Officer and Senior Vice President

Eldron Blackwell has held the position of Senior Vice President, Chief Financial Officer, and Treasurer of ACRES Commercial Realty Corp. since January 2024. Prior to this, he served as the Company's Vice President and Chief Accounting Officer from March 2014 to December 2023. Before joining ACRES Commercial Realty Corp., Mr. Blackwell was the Assistant Controller for New Penn Financial, LLC, a residential mortgage lender, from March 2013 to March 2014. From September 2001 to March 2013, he worked as a Senior Manager in the audit practice at the global accounting firm Grant Thornton LLP.

Jaclyn Jesberger, Chief Legal Officer, Senior Vice President and Secretary

Jaclyn Jesberger serves as the Chief Legal Officer, Senior Vice President, and Secretary for ACRES Commercial Realty Corp.

Linda Kilpatrick, Vice President, Chief Accounting Officer and Controller

Linda Kilpatrick holds the titles of Vice President, Chief Accounting Officer, and Controller at ACRES Commercial Realty Corp.

Steven Landgraber, Senior Vice President of Corporate Finance & Investor Relations Officer

Steven Landgraber is the Senior Vice President of Corporate Finance and Investor Relations Officer for ACRES Commercial Realty Corp.

ACRES Commercial Realty (ACR), a real estate investment trust (REIT) focused on commercial real estate mortgage loans and investments, faces several key business risks inherent to its operating model and the broader economic environment.

1. High Leverage and Liquidity Challenges

   ACRES Commercial Realty operates with a high degree of leverage, which amplifies both potential returns and risks. The company's debt-to-equity ratio stands at 2.85, indicating a significant reliance on borrowed capital. This high leverage can lead to liquidity challenges, as evidenced by a negative free cash flow yield and a decline in operating cash flow growth year-over-year. While leverage is a common strategy for REITs, elevated levels make the company more vulnerable to market downturns or credit quality issues.

2. Interest Rate Risk

   As a commercial mortgage REIT, ACR is highly sensitive to fluctuations in interest rates. Increases in benchmark interest rates can lead to higher borrowing costs for the company, which directly impacts its net interest margin and overall profitability. Although ACRES Commercial Realty deals with floating-rate loans, the cost of its financing facilities can still be adversely affected by rising rates, potentially compressing the spread between the interest earned on its assets and its financing costs.

3. Credit Risk and Cyclical Nature of Commercial Real Estate

   ACR's business is centered on originating and managing commercial real estate (CRE) mortgage loans, which are considered to carry inherent risks tied to the performance and value of the underlying collateral properties. The repayment capacity of these loans is directly linked to the profitability and value of commercial properties, which are susceptible to the cyclical nature of the real estate market and broader economic conditions. A deterioration in the commercial real estate market could lead to increased loan defaults and reduced recovery rates on ACR's investments, potentially impairing the company's equity. Despite recent improvements in portfolio credit quality with a reduction in higher-risk rated loans, the company has experienced net losses in past quarters, partly due to credit loss provisions and a charged-off mezzanine loan.

The structural shift to remote and hybrid work models poses a significant emerging threat to ACRES Commercial Realty. This trend directly impacts the demand for and valuation of office commercial real estate, which serves as collateral for a substantial portion of the mortgage loans and debt investments that ACR originates, holds, and manages. Sustained decreases in office occupancy rates, rising vacancies, and pressure on rental income and property values could increase default risks, impair asset values, and reduce opportunities for new profitable investments in this sector for ACR.

The addressable market for ACRES Commercial Realty's main products and services is the U.S. commercial real estate debt market.

As of the fourth quarter of 2023, the U.S. commercial real estate (CRE) debt outstanding was valued at $5.9 trillion.

ACRES Commercial Realty (NYSE: ACR) is expected to drive future revenue growth over the next 2-3 years through several key strategies centered around its core business of commercial real estate mortgage loans.

1. Net Loan Portfolio Growth through New Originations: The company actively focuses on expanding its loan portfolio by originating new commercial real estate (CRE) loans. In the fourth quarter of 2025, ACRES closed new commitments of $571 million, leading to a net increase of $443.8 million in its loan portfolio. Management anticipates this growth to continue, projecting a net portfolio growth of $500 million to $700 million in 2026. This consistent expansion of the loan book directly translates to increased interest income, a primary component of the company's revenue.
2. Strategic Focus on Multifamily Loans: ACRES is strategically directing its origination efforts towards multifamily properties, a sector generally associated with lower credit losses. This focus on "best-in-class sponsors in top markets" for multifamily loans aims to enhance the overall quality and stability of its portfolio. This approach can lead to more predictable and consistent interest income while mitigating potential credit losses.
3. Execution of CRE Collateralized Loan Obligations (CLOs): The successful structuring and closing of CRE securitization deals, such as the $1 billion ACRES 2026 FL-4 in February 2026, are crucial for future revenue growth. These securitizations enable ACRES to efficiently finance new loan originations and reinvest capital, thereby facilitating further expansion of its lending activities and generating additional interest income streams. The company aims to execute more such transactions.
4. Maintaining or Improving Loan Spreads: Management has indicated a strategic intent to maintain or even improve the weighted average spreads on its newly originated loans, aiming for rates "above and beyond 2.83%". By securing favorable spreads on its commercial real estate loans, ACRES can directly increase its net interest income, a vital driver of overall revenue growth.
5. Proactive Asset Management and Strategic Dispositions: ACRES employs proactive asset management, which has led to an improved weighted average risk rating across its loan portfolio. The strategic disposition of non-core or underperforming assets, such as the sale of an office property in Austin, Texas, and expected future monetizations of real estate investments, allows the company to redeploy capital into higher-quality, higher-yielding commercial real estate loans. This disciplined approach to portfolio management supports long-term revenue growth by optimizing asset allocation and minimizing potential losses.

Share Repurchases

• ACRES Commercial Realty has consistently engaged in share buybacks, resulting in a 28% reduction in its outstanding shares over the last five years.
• In October 2025, the company's board of directors authorized an additional $7.5 million for its existing share repurchase program, applicable to both common and preferred stock.
• Prior to that, in April 2025, the share repurchase program was expanded by an additional $10 million, and in December 2023, an additional $10 million was authorized.

Share Issuance

• The total number of outstanding common shares for ACRES Commercial Realty has decreased over the last few years, from 9.55 million in 2021 to 7.1 million in 2025, largely due to share repurchases.
• As part of its Manager Incentive Plan, ACRES Share Holdings, LLC, and its affiliates received restricted stock grants, including 299,999 shares on May 6, 2022, 295,237 shares on May 7, 2024, and 204,765 shares on March 5, 2026, tied to book value per share performance.

Inbound Investments

• In January 2026, ACRES Commercial Realty announced the pricing of a $1.0 billion Collateralized Loan Obligation (CLO) backed by commercial mortgage loans, a form of financing for its lending activities.
• In May 2021, the company closed ACR 2021-FL1, an $802.6 million commercial real estate (CRE) debt securitization, issuing $675.2 million of non-recourse, floating-rate notes to third parties to finance CRE loans.

Outbound Investments

• ACRES Commercial Realty's primary outbound investments are in its core business of originating and managing commercial real estate mortgage loans and other CRE-related debt and equity investments.
• In 2025, the company originated 14 floating-rate commercial real estate whole loans totaling $733 million, including mezzanine and preferred equity, to expand its lending portfolio.
• The company actively manages its portfolio through property sales and dispositions, such as a $106.8 million student housing sale that generated a net gain of $13.1 million, and contributes foreclosed assets into joint ventures.

Capital Expenditures

• As a real estate investment trust primarily focused on financial assets like mortgage loans and debt investments, ACRES Commercial Realty does not report significant traditional capital expenditures for property, plant, and equipment in the same manner as other industries.