VARIABLE INTEREST ENTITIES	6 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]
VARIABLE INTEREST ENTITIES	VARIABLE INTEREST ENTITIES Consolidated VIEs As discussed in Note 2, the Company evaluates all of its investments and other interests in entities for consolidation, including its former investment in the FL4 CLO Securitization (as defined below), which was considered to be a variable interest in a VIE. FL4 CLO Securitization On January 28, 2021, ACRE Commercial Mortgage 2021-FL4 Ltd. (the “FL4 Issuer”) and ACRE Commercial Mortgage 2021-FL4 LLC (the “FL4 Co-Issuer”), both wholly-owned indirect subsidiaries of the Company, entered into an Indenture (the “FL4 Indenture”) with ACRC Lender LLC, a wholly-owned subsidiary of the Company (the “Seller”), as advancing agent, Wells Fargo Bank, National Association, as note administrator, and Wilmington Trust, National Association, as trustee, which governed the issuance of approximately $603.0 million principal balance secured floating rate notes (the “FL4 Notes”) and $64.3 million of preferred equity in the FL4 Issuer (the “FL4 CLO Securitization”). For U.S. federal income tax purposes, the FL4 Issuer and FL4 Co-Issuer are disregarded entities. The sale of assets to the FL4 Issuer was governed by a Mortgage Asset Purchase Agreement between the Seller and the FL4 Issuer, and acknowledged by the Company solely for purposes of confirming its status as a REIT, in which the Seller made certain customary representations, warranties and covenants. In connection with the FL4 CLO Securitization, the FL4 Issuer and FL4 Co-Issuer offered and issued the following classes of FL4 Notes to third party investors: Class A, Class A-S, Class B, Class C, Class D and Class E Notes (collectively, the “FL4 Offered Notes”). A wholly-owned subsidiary of the Company retained approximately $62.5 million of the FL4 Notes and all of the $64.3 million of preferred equity in the FL4 Issuer, which totaled $126.8 million. The Company, as the holder of the subordinated FL4 Notes and all of the preferred equity in the FL4 Issuer, had the obligation to absorb losses of the FL4 CLO Securitization, since the Company had a first loss position in the capital structure of the FL4 CLO Securitization. On January 20, 2026, the Company exercised its redemption option under the FL4 CLO Securitization, and in connection therewith, exchanged its remaining FL4 Notes and preferred equity in the FL4 Issuer for the remaining mortgage loans and real estate owned held by the FL4 Issuer. As of December 31, 2025, the FL4 Notes were collateralized by interests in a pool of four mortgage assets having a total principal balance of $138.9 million that were closed by a wholly-owned subsidiary of the Company and $52.6 million of real estate owned related to an office property, which had collateralized a previous mortgage asset, and was acquired in September 2024 through a deed in lieu of foreclosure. During the three and six months ended June 30, 2025, the Company paid down $14.4 million and $14.5 million of the FL4 Offered Notes, respectively. As all of the FL4 Notes were repaid in full at par on January 20, 2026, the Company did not pay down any of the FL4 Offered Notes during the three months ended June 30, 2026. During the six months ended June 30, 2026, the Company paid down $99.9 million of the FL4 Offered Notes. As of June 30, 2026, all of the FL4 Notes of the FL4 Issuer held by third parties had been repaid in full at par. As the directing holder of the FL4 CLO Securitization, the Company had the ability to direct activities that could significantly impact the FL4 CLO Securitization’s economic performance. ACRES was designated as special servicer of the FL4 CLO Securitization and had the power to direct activities during the loan workout process on defaulted and delinquent loans, which is the activity that most significantly impacted the FL4 CLO Securitization’s economic performance. ACRES did not waive the special servicing fee, and the Company paid its overhead costs. If an unrelated third party had the right to unilaterally remove the special servicer, then the Company would not have had the power to direct the activities that most significantly impacted the FL4 CLO Securitization’s economic performance. In addition, there were no substantive kick-out rights of any unrelated third party to remove the special servicer without cause. The Company’s subsidiaries, as directing holders, had the ability to remove the special servicer without cause. Based on these factors, the Company was determined to be the primary beneficiary of the FL4 CLO Securitization; thus, the FL4 CLO Securitization was consolidated into the Company’s consolidated financial statements in accordance with FASB ASC Topic 810 and was structured as a pass through entity that received principal and interest on the underlying collateral and distributed those payments to the note holders, as applicable. The assets and other instruments held by the FL4 CLO Securitization were restricted and could only be used to fulfill the obligations of the FL4 CLO Securitization. Additionally, the obligations of the FL4 CLO Securitization did not have any recourse to the general credit of any other consolidated entities, nor to the Company as the primary beneficiary. The inclusion of the assets and liabilities of the FL4 CLO Securitization of which the Company was deemed the primary beneficiary had no economic effect on the Company. The Company’s exposure to the obligations of the FL4 CLO Securitization were generally limited to its investment in the entity. The Company was not obligated to provide, nor did it provide, any financial support for the consolidated structure. As such, the risk associated with the Company’s involvement in the FL4 CLO Securitization was limited to the carrying amount of its investment. Non-consolidated VIEs The Company evaluated its senior mortgage loan investment that is collateralized by a residential condominium property located in New York, and it was determined to be an interest in a VIE. However, the Company was not deemed to be the primary beneficiary. The Company’s exposure to the obligations of the VIE is generally limited to its investment and the Company is not obligated to provide, nor has it provided, any financial support to the VIE. As such, the risk associated with the Company’s involvement in the VIE is limited to the carrying amount of its investment. As of June 30, 2026, the Company’s maximum risk of loss was $140.2 million, which represents the Carrying Value of its investment in the VIE.

On January 28, 2021, ACRE Commercial Mortgage 2021-FL4 Ltd. (the “FL4 Issuer”) and ACRE Commercial Mortgage 2021-FL4 LLC (the “FL4 Co-Issuer”), both wholly-owned indirect subsidiaries of the Company, entered into an Indenture (the “FL4 Indenture”) with ACRC Lender LLC, a wholly-owned subsidiary of the Company (the “Seller”), as advancing agent, Wells Fargo Bank, National Association, as note administrator, and Wilmington Trust, National Association, as trustee, which governed the issuance of approximately $603.0 million principal balance secured floating rate notes (the “FL4 Notes”) and $64.3 million of preferred equity in the FL4 Issuer (the “FL4 CLO Securitization”). For U.S. federal income tax purposes, the FL4 Issuer and FL4 Co-Issuer are disregarded entities.

In connection with the FL4 CLO Securitization, the FL4 Issuer and FL4 Co-Issuer offered and issued the following classes of FL4 Notes to third party investors: Class A, Class A-S, Class B, Class C, Class D and Class E Notes (collectively, the “FL4 Offered Notes”). A wholly-owned subsidiary of the Company retained approximately $62.5 million of the FL4 Notes and all of the $64.3 million of preferred equity in the FL4 Issuer, which totaled $126.8 million. The Company, as the holder of the subordinated FL4 Notes and all of the preferred equity in the FL4 Issuer, had the obligation to absorb losses of the FL4 CLO Securitization, since the Company had a first loss position in the capital structure of the FL4 CLO Securitization. On January 20, 2026, the Company exercised its redemption option under the FL4 CLO Securitization, and in connection therewith, exchanged its remaining FL4 Notes and preferred equity in the FL4 Issuer for the remaining mortgage loans and real estate owned held by the FL4 Issuer. As of December 31, 2025, the FL4 Notes were collateralized by interests in a pool of four mortgage assets having a total principal balance of $138.9 million that were closed by a wholly-owned subsidiary of the Company and $52.6 million of real estate owned related to an office property, which had collateralized a previous mortgage asset, and was acquired in September 2024 through a deed in lieu of foreclosure. During the three and six months ended June 30, 2025, the Company paid down $14.4 million and $14.5 million of the FL4 Offered Notes, respectively. As all of the FL4 Notes were repaid in full at par on January 20, 2026, the Company did not pay down any of the FL4 Offered Notes during the three months ended June 30, 2026. During the six months ended June 30, 2026, the Company paid down $99.9 million of the FL4 Offered Notes. As of June 30, 2026, all of the FL4 Notes of the FL4 Issuer held by third parties had been repaid in full at par.

As the directing holder of the FL4 CLO Securitization, the Company had the ability to direct activities that could significantly impact the FL4 CLO Securitization’s economic performance. ACRES was designated as special servicer of the FL4 CLO Securitization and had the power to direct activities during the loan workout process on defaulted and delinquent loans, which is the activity that most significantly impacted the FL4 CLO Securitization’s economic performance. ACRES did not waive the special servicing fee, and the Company paid its overhead costs. If an unrelated third party had the right to unilaterally remove the special servicer, then the Company would not have had the power to direct the activities that most significantly impacted the FL4 CLO Securitization’s economic performance. In addition, there were no substantive kick-out rights of any unrelated third party to remove the special servicer without cause. The Company’s subsidiaries, as directing holders, had the ability to remove the special servicer without cause. Based on these factors, the Company was determined to be the primary beneficiary of the FL4 CLO Securitization; thus, the FL4 CLO Securitization was consolidated into the Company’s consolidated financial statements in accordance with FASB ASC Topic 810 and was structured as a pass through entity that received principal and interest on the underlying collateral and distributed those payments to the note holders, as applicable. The assets and other instruments held by the FL4 CLO Securitization were restricted and could only be used to fulfill the obligations of the FL4 CLO Securitization. Additionally, the obligations of the FL4 CLO Securitization did not have any recourse to the general credit of any other consolidated entities, nor to the Company as the primary beneficiary.

The inclusion of the assets and liabilities of the FL4 CLO Securitization of which the Company was deemed the primary beneficiary had no economic effect on the Company. The Company’s exposure to the obligations of the FL4 CLO Securitization were generally limited to its investment in the entity. The Company was not obligated to provide, nor did it provide, any financial support for the consolidated structure. As such, the risk associated with the Company’s involvement in the FL4 CLO Securitization was limited to the carrying amount of its investment.

The Company evaluated its senior mortgage loan investment that is collateralized by a residential condominium property located in New York, and it was determined to be an interest in a VIE. However, the Company was not deemed to be the primary beneficiary. The Company’s exposure to the obligations of the VIE is generally limited to its investment and the Company is not obligated to provide, nor has it provided, any financial support to the VIE. As such, the risk associated with the Company’s involvement in the VIE is limited to the carrying amount of its investment. As of June 30, 2026, the Company’s maximum risk of loss was $140.2 million, which represents the Carrying Value of its investment in the VIE.