Ares Commercial Real Estate (ACRE) is a commercial real estate mortgage REIT that originates and holds floating-rate, first-lien senior mortgage loans secured by income-producing commercial properties across the U.S. ACRE's borrowers are typically real estate investors and developers pursuing transitional or value-add business plans — lease-ups, renovations, or condo development — on properties including multifamily, industrial, self-storage, hotel, and office buildings. These borrowers often lack access to traditional bank or bond market financing, so they turn to specialty lenders like ACRE for flexible debt solutions. ACRE originates loans directly through Ares Management's national real estate platform rather than acquiring loans in secondary markets, and holds them for investment, earning interest income over the loan's life. Loan terms are typically floating-rate, tied to SOFR, with an average life of roughly three years. ACRE earns money primarily through net interest income — the spread between what it charges borrowers and its own cost of funds, which it sources through secured credit facilities with major banks and CLO securitizations. ACRE has no employees and is externally managed by Ares Commercial Real Estate Management, a subsidiary of Ares Management, which provides investment, underwriting, and portfolio management. As a REIT, ACRE distributes substantially all taxable income to shareholders. ACRE draws on Ares's broader real estate platform — including over 740 real estate professionals and vertically integrated equity capabilities — for deal flow, underwriting expertise, and co-investment opportunities alongside other Ares-managed vehicles.