#1①ARES COMMERCIAL REAL ESTATE CORPORATION Ares Commercial Real Estate Corporation November 2021#2Disclaimer Statements included herein may constitute "forward-looking statements" 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 future events or the future performance or financial condition of Ares Commercial Real Estate Management LLC ("ACREM"), a subsidiary of Ares Management Corporation. ("Ares Corp."), Ares Corp., certain of their subsidiaries and certain funds and accounts managed by ACREM, Ares Corp. and/or their subsidiaries, including, without limitation, Ares Commercial Real Estate Corporation ("ACRE"). These statements are not guarantees of future results or financial condition and involve a number of risks and uncertainties. Actual results could differ materially from those in the forward-looking statements as a result of a number of factors, including the returns on current and future investments, rates of repayments and prepayments on ACRE'S mortgage loans, availability of investment opportunities, ACRE's ability to originate additional investments and completion of pending investments, the availability of capital, the availability and cost of financing, imposition of margin calls or valuation adjustment events in connection with such financings, market trends and conditions in ACRE's industry and the general economy, the level of lending and borrowing spreads, commercial real estate loan volumes, the impact of COVID-19 and significant market volatility on ACRE's business, ACRE's borrowers, ACRE's industry and the global economy, ACRE's ability to pay future dividends at historical levels or at all, government-sponsored enterprise activity and other risks described from time to time in ACRE's and Ares Corp.'s filings within the Securities and Exchange Commission ("SEC"). Any forward-looking statement, including any contained herein, speaks only as of the time of this release and none of ACRE, ARES Corp. nor ACREM undertakes any duty to update any forward-looking statements made herein. Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws. Ares Corp. is the parent to several registered investment advisers, including Ares Management LLC ("Ares Management") and ACREM. Collectively, Ares Corp., its affiliated entities, and all underlying subsidiary entities shall be referred to as "Ares" unless specifically noted otherwise. For a discussion regarding the potential risks and impact of the COVID-19 pandemic on ACRE, see Part I., Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operation" and Part II., Item 1A. "Risk Factors" in ACRE's Quarterly Report on Form 10-Q. The information contained in this presentation is summary information that is intended to be considered in the context of ACRE's SEC filings and other public announcements that ACRE, ACREM or Ares may make, by press release or otherwise, from time to time. ACRE, ACREM and Ares undertake no duty or obligation to publicly update or revise the forward-looking statements or other information contained in this presentation. These materials contain information about ACRE, ACREM and Ares, and certain of their respective personnel and affiliates, information about their respective historical performance and general information about the market. You should not view information related to the past performance of ACRE, ACREM or Ares or information about the market, as indicative of future results, the achievement of which cannot be assured. Nothing in these materials should be construed as a recommendation to invest in any securities that may be issued by ACRE or any other fund or account managed by ACREM or Ares, or as legal, accounting or tax advice. None of ACRE, ACREM, Ares or any affiliate of ACRE, ACREM or Ares makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and nothing contained herein shall be relied upon as a promise or representation whether as to the past or future performance. Certain information set forth herein includes estimates and projections and involves significant elements of subjective judgment and analysis. Further, such information, unless otherwise stated, is before giving effect to management and incentive fees and deductions for taxes. No representations are made as to the accuracy of such estimates or projections or that all assumptions relating to such estimates or projections have been considered or stated or that such estimates or projections will be realized. In addition, in light of the various investment strategies of such other investment partnerships, funds and/or pools, it is noted that such other investment programs may have portfolio investments inconsistent with those of the investment vehicle or strategy discussed herein. These materials may contain confidential and proprietary information, and their distribution or the divulgence of any of their contents to any person, other than the person to whom they were originally delivered and such person's advisers, without the prior consent of ACRE, ACREM or Ares, as applicable, is prohibited. You are advised that United States securities laws restrict any person who has material, non-public information about a company from purchasing or selling securities of such company (and options, warrants and rights relating thereto) and from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities. You agree not to purchase or sell such securities in violation of any such laws. These materials are not intended as an offer to sell, or the solicitation of an offer to purchase, any security, the offer and/or sale of which can only be made by definitive offering documentation. Any offer or solicitation with respect to any securities that may be issued by ACRE will be made only by means of definitive offering memoranda or prospectus, which will be provided to prospective investors and will contain material information that is not set forth herein, including risk factors relating to any such investment. This may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor's. Such information has not been independently verified and, accordingly, ACRE makes no representation or warranty in respect of this information. Reproduction and distribution of third party content in any form is prohibited except with the prior written permission of the related third party. Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. THIRD PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THIRD PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES, OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice. REF: RE-02233 2 ①ARES COMMERCIAL REAL ESTATE CORPORATION#3Ares Commercial Real Estate Corporation (ACRE) Real Estate Investment Trust with Broad Product & Extensive Credit Capabilities ①ARES Diversified Portfolio of Primarily Senior Floating Rate Loans COMMERCIAL REAL ESTATE CORPORATION Direct Origination of Value-Add, Floating Rate Commercial Mortgage Loans Opportunities for Continued Growth 99% senior loans 64 $1.0 billion 2.5x loans across diversified portfolio in originations YTD, on track for record year Debt to Equity ratio with a target of 3.0x $2.4 billion outstanding principal balance Focused on multifamily, office and industrial properties Strengthened by Ares Management Sponsorship 195+ $282 billion ARES AUM ARES real estate investment professionals 26% Decline in G&A expenses benefitting from increase in scale¹ Well positioned to benefit from material increase in short term interest rates Historical Record of Attractive Performance > 100% dividend coverage from Distributable Earnings² ~5 years 9.8% Dividend yield on book value per diluted common share³ $37 billion ARES Real Estate Group AUM Scaled global real estate team with deep sector experience 33% of stable and increasing dividends4 Portfolio growth year-over-year Track record of generating strong returns to shareholders As of September 30, 2021, unless otherwise noted. Past performance is not indicative of future results. There is no guarantee or assurance investment objectives will be achieved. Diversification does not ensure profit or protect against market loss. 1. 2. 3. 4. From FY 2019 to Q3-21 LTM period. Calculated as period G&A expenses and management fees divided by equity. Full dividend coverage since 2017. Beginning in Q4 2020, the non-GAAP financial measure of Core Earnings was renamed to Distributable Earnings. See page 25 for Distributable Earnings definition and page 23 for Reconciliation of Net Income to Non-GAAP. 3 There is no assurance that dividends will continue at these levels or at all. Based on annualized Q3-2021 declared normal and supplemental dividend of $0.35/share. There is no assurance that dividends will be paid at historical levels or at all. ARES COMMERCIAL REAL ESTATE CORPORATION#4Ares Management With approximately $282 billion in assets under management, Ares Management Corporation is a global alternative investment manager operating an integrated platform across five business groups Profile Founded AUM Employees Investment Professionals Global Offices Direct Institutional Relationships Listing: NYSE- Market Capitalization 1997 $282bn ~2,060 745+ 30+ 1,820+ ~$22.4bn¹ Global Footprint² The Ares Edge Power of a broad and scaled platform enhancing investment capabilities Deep management team with integrated and collaborative approach 20+ year track record of compelling risk adjusted returns through market cycles Pioneer and a leader in leveraged finance, private credit and secondaries Strategies AUM Credit Private Equity $181.2bn $32.7bn Real Estate $36.5bn Secondary Solutions Strategic Initiatives $20.7bn $10.8bn Direct Lending Corporate Private Equity Real Estate Equity Liquid Credit Special Opportunities Real Estate Debt Alternative Credit Infrastructure and Power Private Equity & Credit Secondaries Real Estate Secondaries Infrastructure Secondaries Ares SSG Ares Insurance Solutions³ Ares Acquisition Corporation Note: As of September 30, 2021. AUM amounts include funds managed by Ivy Hill Asset Management, LP., a wholly owned portfolio company of Ares Capital Corporation and registered investment adviser. Past performance is not indicative of future results. 1. As of October 28th, 2021 2. Jakarta, Mumbai and New Delhi offices are operated by third parties with whom Ares SSG maintains an ongoing relationship relating to the sourcing, acquisition and/or management of investments. 3. AUM managed by Ares Insurance Solutions excludes assets which are sub-advised by other Ares' investment groups or invested in Ares funds and investment vehicles. ARES COMMERCIAL REAL ESTATE CORPORATION#5Ares Real Estate Group Global real estate investment manager with vertically integrated operating platform that combines market knowledge, sector experience, and longstanding relationships to originate distinctive deal flow $36.5 Billion AUM ⚫ 21 Partners averaging 26 years of experience • 195+ real estate investment professionals In-house, vertically integrated industrial operating platform • PERE Top 20 Real Estate Manager by 2016-2021 Equity Raised¹ • Rated Special Servicing Platform 2016-2021 by Fitch Ratings¹ • GlobeSt 2020 Influencer in Industrial Real Estate¹ Full Suite of Complementary Real Estate Debt & Equity Strategies Strategies AUM Debt $8.8bn U.S. Equity $21.1bn European Equity $6.6bn Opportunistic Opportunistic Opportunistic Value-Add Value-Add Value-Add Core/Core-Plus Core/Core-Plus Global Real Estate Portfolio Diversified by Property Sectors and Markets Global Market Coverage with Local Presence Experience Across Property Sectors Industrial Multifamily Office Hospitality Retail Life Sciences Self-Storage Single Family Rental Mixed-Use Hartford Chicago London Paris- Denver • Los Angeles New York Rutherford Amsterdam Frankfurt Luxembourg El Segundo Newport Beach Washington, D.C. Dallas Madrid Atlanta Ares Real Estate Office² ● Ares Real Estate Market Coverage Location³ Additional Business Infrastructure/Support Office4 Note: As of September 30, 2021. Please see the Notes at the end of this presentation. 1. The performance, awards/ratings noted herein relate only to selected funds/strategies and may not be representative of any given client's experience and should not be viewed as indicative of Ares' past performance or its funds' future performance. All investments involve risk, including loss of principal. 2. Includes Ares Management Corporation ("ARES") principal and originating offices where real estate activities take place. 3. In Madrid and Frankfurt, Ares Real Estate Group does not maintain a physical office but has an investment professional located in this market. 4. Non-Ares location providing administrative and support functions to the Ares Real Estate Group. 5 ①ARES COMMERCIAL REAL ESTATE CORPORATION#6Cycle Tested Investment Approach We use our direct origination platform to selectively make investments in defensive property types in growing markets that are structured with a level of downside protection and actively managed National Direct Origination Platform Underwriting Process Disciplined and Rigorous Fully Integrated Investment Committee Strong Asset Management Post Close • Experienced team of investment professionals Deep relationships with high quality sponsors and leading brokers nationwide • Focus on strong property fundamentals, cash flows, loan to value and cost basis Pursue commercial properties in liquid institutional markets with positive growth dynamics Global investment committee comprised of senior management from debt and equity strategies Cross-pollination of ideas and information • Robust portfolio management function with extensive workout capabilities Investment teams work alongside portfolio management team once loan is - originated life of loan approach As of September 30, 2021, unless otherwise indicated. The is no guarantee or assurance investment objectives will be achieved. References to downside protection are not guarantees against loss of investment capital or value. 6 ARES COMMERCIAL REAL ESTATE CORPORATION#7National Direct Origination Platform Direct Origination and National Market Coverage Benefits of Broad Direct Origination Footprint West¹ $1.2 billion Las Denver, CO Angeles, CA ~26 investment professionals in the Real Estate Debt Group Midwest¹ $1.1 billion Chicago, IL Atlanta, GA Southwest¹ $848 million Southeast' $1.7 billion Legend Ares Real Estate Debt Group Office and Coverage Location Additional Business Infrastructure/Support Office East¹ $1.2 billion New York, NY Washington, D.C 1 Widens the funnel to provide larger deal universe 2 Increases control over structures and better economics 3 Enables proactive portfolio construction 4 Drives strong credit performance Broad investment capabilities combined with direct origination focus strengthen investment sourcing, selectivity and structuring As of September 30, 2021, unless otherwise indicated. Diversification does not assure profit or protect against market loss. 1. Past performance is not indicative of future results. Map excludes $0.8 billion of investment portfolios backed by properties located in multiple regions across the U.S. 7 ARES COMMERCIAL REAL ESTATE CORPORATION#8Target Attractive Properties in Diversified Markets Targeted Investments and Investment Strategy ✓ Direct origination of primarily senior CRE loans ✓ Strategically focused on short-term, transitional loans with stable cash flow and tenancy ✓ Predominately pursuing loans on multifamily, offices with long term leases, and industrial proprieties ✓ Focus on top 50 MSAs in the U.S. and non-gateway cities ✓ Focus on major, liquid markets with positive market dynamics (lower cost of living, growing demographics) ✓ Extensive experience in wide range of property types with emphasis on opportunities to increase cash flows and minimize volatility ✓ Prioritize institutional-quality properties and sponsors ✓ Carefully structured loans with meaningful covenant protections There is no guarantee or assurance investment objectives will be achieved. 8 ARES COMMERCIAL REAL ESTATE CORPORATION#9Loan Portfolio Positioning and Performance Portfolio Characteristics Focused and Geographically Diverse Portfolio² By Asset Type By Geography Well-Constructed Defensive and Diversified Portfolio 64 Active Loans Across Diversified Portfolio 99% Percentage of Senior Loans² 6% 5.8% $2.4 billion 6% Weighted Average Outstanding Principal Balance¹ Unleveraged 7% Effective Yield³ 10% 10% 1.4 years Weighted Average 98% Floating Remaining Life Rate Loans Office Mixed-Use Industrial Self Storage 14% 12% 35% 16% 19% 8% 22% Multifamily Hotel Student Housing Residential/Condo Southeast West Midwest Mid-Atlantic / Northeast Southwest Note: As of September 30, 2021, unless otherwise noted. Past performance is not indicative of future results. Diversification does not ensure profit or protect against market loss. Weighted average unpaid principal balance of loan portfolio of $2.282 billion during Q3 2021. 1. 2. Based on outstanding principal balance. 3. Excludes impact of two loans on non-accrual status. Including the two non-accrual loans, total weighted average unleveraged effective yield for total loans held for investment is 5.7%. Please see the glossary at the end of this presentation. 9 ①ARES COMMERCIAL REAL ESTATE CORPORATION 35%#10Balance Sheet and Expense Management Diversified Sources of Financing³ Well-Constructed Diversified & Conservative Balance Sheet 58% 8 Sources of Financing¹ Non-recourse Financing $2.2 billion Total Capacity Across All Financings² 1.5 years 0% 55% 2.5x In Excess of Average Loan Life4 Debt to Equity Ratio 5,6 Spread Based Mark to Market Provisions7 Strengthened Balance Sheet Position $14.31 $14.14 Q4 2020 Q3 2021 Book Value Per Diluted Common Share ($ in millions) Debt to Equity % Non-Recourse Principal Outstanding 3% 4% 38% Secured Funding Agreements Secured Term Loan CLO Securitizations Notes Payable Decrease in G&A Expenses with Increase in Scale 10.0% 7.5% $473 $426 5.0% 2.5% 3.25% 3.38% 0.0% Q4 2020 Q3 2021 2019 A 2.8x 2.5x 37% 58% $1,374 $1,709 1234567 2. Note: As of September 30, 2021, unless otherwise noted. Diversification does not ensure profit or protect against market loss. Excludes Notes Payable. See page 15 for additional details on sources of funding. Weighted average unpaid principal balance of $1.671 billion across all financings for Q3 2021. 3. Based on outstanding principal balance. 4. Assumes exercise of extension options on financing agreements. 5. Excludes CECL reserve. 6. Total debt to equity ratio of 2.5x, including CECL reserve. 10 7. 2020 A Equity Base ($mm) $800 $698 $600 $400 $200 2.40% $0 Q3-21 LTM G&A % of Equity ARES Secured funding agreements are not subject to capital markets mark-to-market provisions based on changes in market borrowing spreads but are subject to remargining provisions based on the credit performance of our loans. COMMERCIAL REAL ESTATE CORPORATION 8. Includes G&A expenses and management fees.#11History of Growing and Consistent Dividends Dividend History¹ ($ per share) Supplemental dividend of $0.02 in 2021 $0.36 $0.35 $0.35 $0.35 $0.34 $0.33 $0.33 $0.33 $0.33 $0.33 $0.33 $0.33 $0.33 $0.32 $0.31 $0.30 $0.29 $0.28 $0.28 $0.28 $0.27 $0.27 $0.27 $0.27 $0.26 Q1 Q2 Q3 2017 2017 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 Q1 Q2 Q3 2018 2019 2019 2019 Q4 Q1 Q2 Q3 Q4 2019 2020 2020 2020 2020 Q1 Q2 Q3 2021 2021 2021 Dividend Coverage ($ per share) 1.0x 1. نه Full Dividend Coverage from Distributable Earnings² 1.2x 1.1x 1.0x 1.1x $1.54 $1.43 $1.41 $1.36 $1.13 Dividend $1.32 Dividend $1.32 Dividend $1.38 Dividend $1.16 Dividend $1.08 2017 2018 2019 2020 Q3 2021 LTM Distributable Earnings There is no assurance that dividends will be paid at historical levels or at all. Beginning in Q4 2020, the non-GAAP financial measure of Core Earnings was renamed to Distributable Earnings. See page 25 for Distributable Earnings definition and page 23 for Reconciliation of Net Income to Non-GAAP Distributable Earnings. 11 ARES COMMERCIAL REAL ESTATE CORPORATION#12ACRE Investment Highlights By investing in commercial real estate properties in attractive and growing markets across the U.S., the company provides an attractive stream of dividends to its investors Attractively positioned senior loan portfolio in stable property sectors across diversified markets with attractive growth demographics Highly experienced management team backed by sponsorship of Ares Management Broad, experienced and specialized investment team in local offices provide national coverage across the U.S. The company maintains ample liquidity and uses relatively modest leverage from long-term and diverse sources of financing and match funds its assets Historical strong track record of attractive dividends with full dividend coverage from Distributable Earnings¹ Past performance is not indicative of future results 1. There is no assurance that dividends will be paid at historical levels or at all. 12 ARES COMMERCIAL REAL ESTATE CORPORATION#13①ARES COMMERCIAL REAL ESTATE CORPORATION Appendix#14Fully Integrated Investment Committee Includes Leadership of Debt and Equity Strategies Bill Benjamin⭑* Partner, Head of Ares Real Estate Group 35 years of experience Bryan Donohoe* Partner, Head of U.S. Debt, CEO of ACRE 21 years of experience Tae-Sik Yoon* Partner, CFO of Ares Real Estate Group, CFO of ACRE 28 years of experience David Roth* Partner, Head of U.S. Equity, President of ACRE 37 years of experience JB Gerber* Partner, Head of Real Estate Debt Origination 16 years of experience Kevin Cahill Partner, Portfolio Manager, Europe Equity 17 years of experience Jay Glaubach Partner, Portfolio Manager, U.S. Equity 23 years of experience Andrew Holm Partner, Portfolio Manager, U.S. Equity 16 years of experience Howard Huang* Partner, Portfolio Manager U.S. 32 years of experience Wilson Lamont Partner, Co-Head of Europe Equity 21 years of experience John Ruane Partner, Co-Head of Europe Equity 21 years of experience David Sachs* Partner, Strategy and Relationship Mgmt. Group 40 years of experience Sumit Sasidharan* Managing Director, Head of Capital Markets, Real Estate Debt 24 years of experience Julie Solomon Partner, Head of Product Management and Investor Relations, Real Estate 22 years of experience *Serves on the Real Estate Debt Investment Subcommittee that reviews deals under a certain threshold. 14 ARES COMMERCIAL REAL ESTATE CORPORATION#15Additional Details on Sources of Funding ($ in millions) Financing Sources Secured Funding Agreements Wells Fargo Facility $ Total Commitments Outstanding Balance Pricing Range Mark-to-Market 350.0 $ 281.2 LIBOR+1.50 to 2.75% Credit Citibank Facility 325.0 148.0 LIBOR+1.50 to 2.25% Credit CNB Facility¹ 50.0 LIBOR+2.65% Credit Morgan Stanley Facility 250.0 206.2 LIBOR+1.75 to 2.85% Credit MetLife Facility 180.0 20.6 LIBOR+2.10 to 2.50% Credit Subtotal 1,155.0 $ 656.0 Asset Level Financing Notes Payable $ 51.8 $ 48.3 LIBOR+3.00 to 3.75% None Capital Markets Secured Term Loan² $ 60.0 $ 60.0 LIBOR+ 5.75% Credit 2017-FL3 Securitization 445.6 445.6 LIBOR+ 1.70% None 2021-FL4 Securitization LIBOR+ 1.19% None 499.5 499.5 Subtotal Total Debt 1,005.1 $ 1,005.1 2,211.9 $ 1,709.4 Note: As of September 31, 2021/ 1. CNB facility was upsized to $75mm on 11/12/2021 with interest rate on future advances of SOFR + 2.65%. 2. Term loan was upsized to $150mm with interest rate of 4.50% fixed. 15 ARES COMMERCIAL REAL ESTATE CORPORATION#16Illustrative Transactions of ACRE Originated Loans¹ Industrial Various Office Arizona Office North Carolina Self Storage Colorado $30,692,000 Senior Loan $7,360,000 Senior Loan $78,283,710 Senior Loan Self Storage Arizona Mixed-Use New York $115,690,000 Senior Loan $8,640,000 Senior Loan Self Storage Arizona $44,679,809 Senior Loan Industrial New Jersey Extra Spac Storage $85,000,000 Senior Loan $81,000,000 Senior Loan $37,450,000 Senior Loan Office New York Multifamily South Carolina $3,238,400 Senior Loan Residential/Condominium Florida $75,000,000 Senior Loan 731 Self Storage New Jersey $55,500,000 Senior Loan 1. The transactions presented in this section are shown for illustrative purposes only and are the twelve most recent ACRE transactions through June 30, 2021. These transactions are not necessarily representative of all transactions of a given type or of investments generally and are intended to be illustrative of some of the types of investments that may be made by ACRE in regard to real estate private debt transactions. Such transactions are not necessarily representative of the investment opportunities that will be available to ACRE in the future. 16 ①ARES COMMERCIAL REAL ESTATE CORPORATION#17Loans Held for Investment Portfolio Details ($ in millions) # Loan Type Office Loans: Location Origination Date Current Loan Outstanding Commitment Principal Unleveraged Carrying Value Interest Rate LIBOR Floor Effective Yield Maturity Date Payment Terms (1) 1 Senior 2 Senior IL Diversified Nov 2020 Jan 2020 $151.5 $150.5 $149.8 L+3.61% 1.5% 5.5% Mar 2023 1/0 132.6 112.5 112.2 L+3.65% 1.6% 5.7% Jan 2023 1/0 3 Senior AZ Sep 2021 115.7 77.4 76.5 L+3.50% 0.1% 4.0% Oct 2024 1/0 4 Senior IL Nov 2017 67.8 67.8 67.8 L+3.75% 1.3% 5.3% Dec 2021 1/0 5 Senior NC Aug 2021 85.0 64.6 63.8 L+3.55% 0.2% 4.2% Aug 2024 1/0 6 Senior NC Mar 2019 84.0 63.5 63.5 L+4.25% 2.4% 6.7% Mar 2022 1/0 7 Senior NY Jul 2021 81.0 60.4 59.7 L+3.85% 0.1% 4.3% Aug 2025 1/0 8 Senior IL May 2018 59.4 57.4 57.3 L+3.95% 2.0% 6.2% Jun 2022 P/I 9 Senior GA Nov 2019 56.2 46.3 46.1 L+3.05% 2.0% 5.7% Dec 2022 1/0 10 Senior CA Oct 2019 37.2 32.2 32.1 L+3.35% 2.0% 6.0% Nov 2022 1/0 11 Senior IL Dec 2019 41.9 28.5 28.4 L+3.80% 1.8% 6.2% Jan 2023 1/0 12 Senior NC Apr 2019 30.5 28.5 28.1 L+3.53% 2.3% 6.8% May 2023 1/0 13 Senior CA Nov 2018 22.9 22.9 22.8 L+3.40% 2.3% 6.2% Nov 2022 1/0 14 Subordinated NJ Mar 2016 17.0 17.0 16.3 12.00% -% 13.7% Jan 2026 1/0 15 Senior NC Oct 2018 13.5 9.4 9.4 L+4.00% 2.1% 6.2% Nov 2022 1/0 16 Subordinated CA Nov 2017 3.1 3.0 3.0 L+8.25% 1.3% 9.7% Nov 2021 1/0 Total Office $999.3 $841.9 $836.8 Multifamily Loans: 17 Senior FL Jun 2020 $91.8 $91.3 $91.0 L+5.00% 0.8% 6.7% Jun 2022 1/0 18 Senior TX Sep 2019 75.0 75.0 74.8 L+3.25% 0.2% 3.5% Oct 2024 1/0 19 Senior FL Jun 2020 46.7 46.2 46.1 L+5.00% 0.8% 6.6% Jun 2022 1/0 20 Senior SC Jun 2021 37.5 37.5 37.2 L+2.75% 0.2% 3.4% Jun 2023 1/0 21 Senior SC Aug 2019 34.6 30.9 30.7 L+6.50% 2.2% 10.2% Sep 2022 1/0 22 Senior PA Dec 2018 30.3 29.4 29.3 L+3.00% 2.4% 5.9% Dec 2021 1/0 23 Senior WA Feb 2020 19.0 18.7 18.6 L+3.00% 1.7% 5.1% Mar 2023 1/0 Total Multifamily $334.9 $329.0 $327.7 Note: As of September 30, 2021. Please see the glossary at the end of this presentation. 1. I/O = interest only, P/I = principal and interest. 17 ARES COMMERCIAL REAL ESTATE CORPORATION#18Loans Held for Investment Portfolio Details ($ in millions) # Loan Type Mixed-Use Loans: Location Origination Date Current Loan Outstanding Commitment Principal Unleveraged Carrying Value Interest Rate LIBOR Floor Effective Yield Maturity Date Payment Terms (1) 24 Senior FL Feb 2019 $84.0 $84.0 $84.0 L+4.25% 1.5% 5.7% Feb 2023 1/0 25 Senior NY Jul 2021 78.3 75.0 74.3 L+3.65% 0.1% 4.1% Jul 2024 1/0 26 Senior CA Jan 2021 58.9 56.8 56.6 (2) (2) 5.4% Jan 2024 1/0 27 Senior TX Sep 2019 42.2 35.8 35.6 (3) 0.3% 4.7% Sep 2022 1/0 28 Senior CA Feb 2020 39.6 35.2 34.9 L+4.10% 1.7% 6.4% Mar 2023 1/0 Total Mixed-Use $303.0 $286.8 $285.4 Industrial Loans: 29 Senior IL May 2021 $100.7 $70.1 $69.4 L+4.55% 0.2% 5.2% May 2024 1/0 30 Senior NY Jan 2020 77.5 69.4 69.2 L+5.00% 1.6% 7.1% Feb 2022 1/0 31 Senior NJ Jun 2021 44.7 23.2 22.9 L+3.75% 0.3% 4.5% May 2024 1/0 32 Senior CA Nov 2019 26.6 23.0 23.0 L+4.50% 1.9% 7.4% Dec 2021 1/0 33 Senior CO Jul 2021 20.8 20.8 20.6 L+6.75% 0.3% 7.7% Feb 2023 1/0 34 Senior CA Aug 2019 19.6 16.7 16.6 L+3.75% 2.0% 6.3% Mar 2023 1/0 35 Senior(4) PA Sep 2021 3.0 3.0 2.9 L+5.50% 0.3% 6.1% Sep 2024 1/0 36 Senior (4) 37 Senior(4) 38 Senior(4) 328 CO Sep 2021 2.9 2.9 2.9 L+6.25% 0.3% 6.9% Sep 2024 1/0 AZ Sep 2021 2.7 2.7 2.7 L+5.90% 0.3% 6.5% Oct 2024 1/0 GA Aug 2021 1.3 1.3 1.3 L+5.25% 0.3% 5.9% Sep 2024 1/0 Total Industrial $299.8 $233.1 $231.5 Note: As of September 30, 2021. Please see the glossary at the end of this presentation. 1. I/O = interest only, P/I = principal and interest. 2. At origination, the California loan was structured as both a senior and mezzanine loan with us holding both positions. The senior loan, which had an outstanding principal balance of $45.0 million as of September 30, 2021, accrues interest at a per annum rate of L+3.80 with a 0.20% LIBOR floor and the mezzanine loan, which had an outstanding principal balance of $11.8 million as of September 30, 2021, accrues interest at a per annum rate of 10.00% 3. In March 2021, ACRE and the borrower entered into a modification agreement to, among other things, split the original senior Texas loan into two separate notes. Note A, which had an outstanding principal balance of $35.3 million as of September 30, 2021, accrues interest at a per annum rate of L+ 3.75% and Note B, which had an outstanding principal balance of $0.4 million as of September 30, 2021, accrues interest at a per annum rate of L+10.00%. 4. Loans are a cross-collateralized portfolio with affiliates of the same borrower. 18 ①ARES COMMERCIAL REAL ESTATE CORPORATION#19Loans Held for Investment Portfolio Details ($ in millions) # Loan Type Hotel Loans: Location Origination Date Current Loan Outstanding Commitment Principal Unleveraged Carrying Value Interest Rate LIBOR Floor Effective Yield Maturity Date Payment Terms (1) 39 Senior 40 Senior OR/WA Diversified May 2018 $68.1 $68.1 $67.3 L+3.45% 1.9% 7.4% Sep 2018 60.8 60.8 60.6 L+3.60% 2.1% 6.1% May 2022 Sep 2022 41 Senior CA Dec 2017 40.0 40.0 40.0 L+4.12% 1.4% 5.8% Jan 2022 42 Senior MI Nov 2015 33.2 33.2 33.2 L+3.95% 0.3% 4.4% Jul 2022 1/0 43 Senior IL Apr 2018 32.9 32.9 31.0 L+4.40% 1.9% -%(2) May 2022 55555 1/0 1/0 1/0 1/0 Total Hotel $235.0 $235.0 $232.1 Student Housing Loans: 44 Senior TX Dec 2017 $39.5 $39.5 $39.5 L+4.75% 0.5% 5.5% Jan 2022 45 Senior CA Jun 2017 36.5 36.5 36.5 L+3.95% 0.4% 4.3% Jul 2022 46 Senior NC Feb 2019 30.0 30.0 30.0 L+3.15% 2.3% 5.9% Feb 2022 47 Senior TX Dec 2017 25.1 24.6 24.4 L+3.45% 1.6% 5.6% Feb 2023 48 Senior FL Jul 2019 22.0 22.0 21.9 L+3.25% 2.3% 6.0% Aug 2022 49 Senior AL Apr 2021 19.5 19.5 19.3 L+3.85% 0.2% 4.4% May 2024 NOOOOO P/I 1/0 1/0 1/0 1/0 1/0 $172.6 $172.1 $171.6 Total Student Housing Self Storage Loans: 50 Senior NJ Apr 2021 $55.5 $55.5 $55.6 L+3.80% 0.4% 4.1% Feb 2024 51 Senior FL Feb 2019 19.5 19.5 19.5 L+3.50% 2.0% 6.0% Mar 2022 52 Senior FL Jan 2021 10.8 10.8 10.7 L+2.90% 1.0% 4.4% Dec 2023 53 Senior AZ Jul 2021 8.6 8.3 8.3 L+2.90% 0.9% 4.0% May 2024 54 Senior AZ Jul 2021 7.4 7.4 7.3 L+2.90% 0.9% 4.1% May 2024 55 Senior FL Jan 2021 7.0 7.0 6.9 L+2.90% 1.0% 4.3% Dec 2023 56 Senior FL Jan 2021 6.4 6.4 6.4 L+2.90% 1.0% 4.3% Dec 2023 57 Senior MO Jan 2021 6.5 6.1 6.1 L+3.00% 1.3% 4.4% Dec 2023 58 Senior IL Jan 2021 5.6 5.5 5.5 L+3.00% 1.0% 4.3% 59 Senior FL Jan 2021 4.4 4.4 4.4 L+2.90% 1.0% 4.2% 60 Senior CO Jul 2021 3.2 3.2 3.2 L+2.90% 0.9% 3.8% Dec 2023 Dec 2023 Apr 2024 1/0 OOOOOOOOOOO 1/0 1/0 1/0 1/0 1/0 1/0 1/0 1/0 1/0 1/0 Total Self Storage $134.9 $134.1 $133.9 Note: As of September 30, 2021. Please see the glossary at the end of this presentation. 1. I/O = interest only, P/I = principal and interest. 19 2. Loan was on non-accrual status as of September 30, 2021 and therefore, there is no Unleveraged Effective Yield as the loan is non-interest accruing. ①ARES COMMERCIAL REAL ESTATE CORPORATION#20Loans Held for Investment Portfolio Details ($ in millions) # Loan Type Location Residential/Condominium Loans: Origination Current Loan Outstanding Date Commitment Principal Unleveraged Carrying Value Interest Rate LIBOR Floor Effective Yield Maturity Date Payment Terms (1) -% 6.0% 10.9% Jul 2023 1/0 May 2021(3) 1/0 -% -%(4) May 2021(5) -% 19.0% Aug 2021 1/0 1/0 61 Senior FL Jul 2021 $75.0 $65.7 $65.1 L+5.25% 62 Senior NY Oct 2018 53.6 53.6 53.6 (2) (2) 63 Senior CA Jan 2018 14.3 14.3 14.3 13.00% 64 Subordinated HI Aug 2018 11.5 11.5 11.5 14.00% ༈ ཀྱེེ * ༈། Total Residential/Condominium $154.4 $145.1 $144.5 Loan Portfolio Total/Weighted Average $2,633.9 $2,377.1 $2,363.5 1.2% (6) 5.7% Note: As of September 30, 2021. Please see the glossary at the end of this presentation. 1. I/O interest only, P/I = principal and interest. 2. At origination, the New York loan was structured as both a senior and mezzanine loan with the Company holding the mezzanine loan and a third party holding the senior loan. In April 2021, the Company purchased the senior loan from the third party at par. The senior loan, which had an outstanding principal balance of $35.0 million as of September 30, 2021, accrues interest at a per annum rate of L + 6.00% with a 1.75% LIBOR floor and the mezzanine loan, which had an outstanding principal balance of $18.6 million as of September 30, 2021, accrues interest at a per annum rate of L + 14.00% with a 2.28% LIBOR floor. The mezzanine loan includes a $2.6 million to the borrower, for which such amount accrues interest at a per annum rate of 20.00%. 3. Loan was in maturity default as of September 30, 2021. Loan was evaluated for impairment and it was concluded that no impairment charge should be recognized as of September 30, 2021 and that this loan should not be placed on non-accrual status as of September 30, 2021. For more information see "Notes to Consolidated Financial Statements," "Note 3 - Loans Held for Investment" in our Quarterly Report on Form 10-Q. 4. Loan was on non-accrual status as of September 30, 2021 and therefore, there is no Unleveraged Effective Yield as the loan is non-interest accruing. 5. Loan was in maturity default as of September 30, 2021. Loan was evaluated for impairment and it was concluded that no impairment charge should be recognized as of September 30, 2021 and that this loan should be placed on non-accrual status as of September 30, 2021. For more information see "Notes to Consolidated Financial Statements," "Note 3 - Loans Held for Investment" in our Quarterly Report on Form 10-Q. 6. The weighted average floor is calculated based on loans with LIBOR floors. 20 ARES COMMERCIAL REAL ESTATE CORPORATION#21Consolidated Balance Sheets ($ in thousands, except share and per share data) ASSETS As of 9/30/2021 12/31/2020 Cash and cash equivalents $ 15,787 $ 74,776 Loans held for investment ($1,135,660 and $550,590 related to consolidated VIES, respectively) Current expected credit loss reserve 2,363,499 1,815,219 (22,691) (23,604) Loans held for investment, net of current expected credit loss reserve 2,340,808 1,791,615 Real estate owned, net 36,695 37,283 Other assets ($2,524 and $1,079 of interest receivable related to consolidated VIES, respectively; $47,618 and $6,410 of other receivables related to consolidated VIES, respectively) 73,395 25,823 $ 2,466,685 $ 1,929,497 Total assets LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Secured funding agreements Notes payable Secured term loan Collateralized loan obligation securitization debt (consolidated VIES) Secured borrowings Due to affiliate Dividends payable Other liabilities ($549 and $391 of interest payable related to consolidated VIES, respectively) Total liabilities Commitments and contingencies STOCKHOLDERS' EQUITY Common stock, par value $0.01 per share, 450,000,000 shares authorized at September 30, 2021 and December 31, 2020 and 47,001,821 and 33,442,332 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively Additional paid-in capital Accumulated other comprehensive income Accumulated earnings (deficit) Total stockholders' equity Total liabilities and stockholders' equity 21 $ 656,014 $ 755,552 47,381 61,837 60,000 110,000 940,133 443,871 59,962 59,790 3,947 3,150 16,523 11,124 9,982 11,158 1,793,942 1,456,482 464 $ 701,370 19 (29,110) 672,743 2,466,685 329 497,803 (25,117) 473,015 $ 1,929,497 ARES COMMERCIAL REAL ESTATE CORPORATION#22Consolidated Statements of Operations ($ in thousands, except share and per share data) Revenue: Interest income Interest expense Net interest margin Revenue from real estate owned Total revenue 9/30/2021 For the Three Months Ended 6/30/2021 3/31/2021 12/31/2020 9/30/2020 34,023 $ (12,669) 21,354 30,859 (11,092) 19,767 $ 30,704 $ 29,144 $ 30,626 (12,139) (11,499) (11,875) 18,565 17,645 18,751 5,850 3,764 2,658 3,560 3,623 27,204 23,531 21,223 21,205 22,374 Expenses: Management and incentive fees to affiliate 3,175 2,951 2,567 2,388 1,847 Professional fees 480 615 785 438 639 General and administrative expenses 1,119 1,195 1,157 935 969 General and administrative expenses reimbursed to affiliate 773 788 752 762 802 Expenses from real estate owned 5,339 3,842 3,277 4,151 4,046 Total expenses 10,886 9,391 8,538 8,674 8,303 Provision for current expected credit losses 6,367 (3,883) (3,240) (1,877) (1,048) Realized losses on loans sold 4,008 Change in unrealized losses on loans held for sale (3,998) Income before income taxes 9,951 Income tax expense, including excise tax Net income attributable to common stockholders $ 9,951 $ 18,023 408 17,615 $ 15,925 185 15,740 $ EA 14,408 1 181 14,407 $ 14,928 15,109 Earnings per common share: Basic earnings per common share Diluted earnings per common share $ 0.21 $ 0.21 $ 0.43 $ 0.43 $ 0.46 $ 0.45 $ 0.43 $ 0.43 0.45 0.44 Weighted average number of common shares outstanding: Basic weighted average shares of common stock outstanding Diluted weighted average shares of common stock outstanding Dividends declared per share of common stock (1) 46,957,339 41,009,175 34,417,040 47,209,469 41,294,597 34,720,950 33,349,475 33,567,072 33,337,445 33,550,444 $ 0.35 $ 0.35 $ 0.35 $ 0.33 $ 0.33 1. There is no assurance dividends will continue at these levels or at all. 22 22 ARES COMMERCIAL REAL ESTATE CORPORATION#23Reconciliation of Net Income to Non-GAAP Distributable Earnings For the Three Months Ended Depreciation of real estate owned Provision for current expected credit losses ($ in thousands, except per share data) 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Net income attributable to common stockholders $ 9,951 $ 17,615 $ 15,740 $ 14,407 $ 14,928 Stock-based compensation 428 497 521 382 367 Incentive fees to affiliate 572 693 658 533 225 225 224 224 224 6,367 (3,883) (3,240) (1,877) (1,048) Change in unrealized losses on loans held for sale (3,998) Distributable Earnings $ 17,543 $ 15,147 $ 13,903 $ 13,669 $ 10,473 Net income attributable to common stockholders $ 0.21 $ 0.43 $ 0.46 $ 0.43 $ 0.45 Stock-based compensation 0.01 0.01 0.02 0.01 0.01 Incentive fees to affiliate 0.01 0.02 0.02 0.02 Depreciation of real estate owned Provision for current expected credit losses Change in unrealized losses on loans held for sale Basic Distributable Earnings per common share Net income attributable to common stockholders 0.01 0.01 0.01 0.01 0.14 (0.09) (0.09) (0.06) (0.03) (0.12) 0.37 $ 0.37 $ 0.40 $ 0.41 $ 0.31 $ 0.21 $ 0.43 $ 0.45 $ 0.43 $ 0.44 Stock-based compensation Incentive fees to affiliate 0.01 0.01 0.02 0.01 0.01 0.01 0.02 0.02 0.02 Depreciation of real estate owned 0.01 0.01 0.01 0.01 Provision for current expected credit losses 0.13 (0.09) (0.09) (0.06) (0.03) Change in unrealized losses on loans held for sale (0.12) Diluted Distributable Earnings per common share $ 0.37 $ 0.37 $ 0.40 $ 0.41 $ 0.31 23 23 ARES COMMERCIAL REAL ESTATE CORPORATION#24Endnotes Ares Real Estate Group Slide: PERE 100: Ares ranked 16th out of 100. Ranking applies to the Ares Real Estate Group related to selected funds managed therein. The PERE 100 measures equity raised between January 1, 2016 and March 31, 2021 for direct real estate investment through closed-ended, commingled real estate funds and co-investment vehicles that invest alongside these funds. The vehicles must give the general partner discretion over capital and investment decisions and excludes club funds, separate accounts and joint ventures where the general partner does not have discretion over capital and investments. Also excluded are funds with strategies other than real estate value-added and opportunistic (such as core and core-plus), funds not directly investing in real estate (such as fund of funds and debt funds) and funds where the primary strategy is not real estate-focused (such as general private equity funds). Ares did not pay a participation or licensing fee in order to be considered for the PERE 100 ranking. Fitch Ratings assigned a commercial real estate loan level special servicer rating of 'CLLSS2-' to Ares Commercial Real Estate Servicer LLC ("ACRES") as of June 8, 2021. To be considered for a Fitch rating, Ares paid Fitch a standard, contracted fee for initial and ongoing evaluation. The rating assigned by Fitch Ratings was solicited and assigned or maintained at the request of the rated entity/issuer or a related third party. Fitch Ratings assigns ratings to commercial mortgage special servicers on a scale ranging from Level 1 through Level 5, each of which are described below: о Level 1 Servicer Rating: Servicers demonstrating the highest standards in overall servicing ability. о Level 2 Servicer Rating: Servicers demonstrating high performance in overall servicing ability. о Level 3 Servicer Rating: Servicers demonstrating proficiency in overall servicing ability. о о Level 4 Servicer Rating: Servicers lacking proficiency due to a weakness in one or more areas of servicing ability. Level 5 Servicer Rating: Servicers demonstrating limited or no proficiency in servicing ability Investment Process Overview Slide: Fitch Ratings assigned a commercial real estate loan level special servicer rating of 'CLLSS2-' to Ares Commercial Real Estate Servicer LLC ("ACRES") as of June 8, 2021. To be considered for a Fitch rating, Ares paid Fitch a standard, contracted fee for initial and ongoing evaluation. The rating assigned by Fitch Ratings was solicited and assigned or maintained at the request of the rated entity/issuer or a related third party. Fitch Ratings assigns ratings to commercial mortgage special servicers on a scale ranging from Level 1 through Level 5, each of which are described below: Level 1 Servicer Rating: Servicers demonstrating the highest standards in overall servicing ability. о о Level 2 Servicer Rating: Servicers demonstrating high performance in overall servicing ability. о Level 3 Servicer Rating: Servicers demonstrating proficiency in overall servicing ability. о Level 4 Servicer Rating: Servicers lacking proficiency due to a weakness in one or more areas of servicing ability. о Level 5 Servicer Rating: Servicers demonstrating limited or no proficiency in servicing ability 24 24 ①ARES COMMERCIAL REAL ESTATE CORPORATION#25Glossary Ares Warehouse Distributable Earnings Unleveraged Effective Yield Weighted Average Unleveraged Effective Yield The Ares Warehouse represents a real estate debt warehouse investment vehicle maintained by an affiliate of ACREM. The Ares Warehouse holds Ares Management originated commercial real estate loans, which are made available to purchase by other investment vehicles, including ACRE and other Ares Management managed investment vehicles. Beginning in Q4 2020, the non-GAAP financial measure of Core Earnings was renamed to Distributable Earnings to more appropriately reflect the principal purpose of the measure. Distributable Earnings helps the Company evaluate its financial performance excluding the effects of certain transactions and GAAP adjustments that it believes are not necessarily indicative of its current loan origination portfolio and operations. To maintain the Company's REIT status, the Company is generally required to annually distribute to its stockholders substantially all of its taxable income. The Company believes the disclosure of Distributable Earnings provides useful information to investors regarding the Company's ability to pay dividends, which is one of the principal reasons investors invest in the Company. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Distributable Earnings is defined as net income (loss) computed in accordance with GAAP, excluding non-cash equity compensation expense, the incentive fees the Company pays to its Manager, depreciation and amortization (to the extent that any of the Company's target investments are structured as debt and the Company forecloses on any properties underlying such debt), any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss), one-time events pursuant to changes in GAAP and certain non-cash charges after discussions between the Company's manager and the Company's independent directors and after approval by a majority of the Company's independent directors. Loan balances that are deemed to be uncollectible are written off as a realized loss and are included in Distributable Earnings. Distributable Earnings is aligned with the calculation of "Core Earnings," which is defined in the Management Agreement and is used to calculate the incentive fees the Company pays to its Manager. Unleveraged effective yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premiums or discounts) and assumes no dispositions, early prepayments or defaults. Weighted average unleveraged effective yield is calculated based on the average of unleveraged effective yield of all loans held by the Company as weighted by the outstanding principal balance of each loan. 25 25 ARES COMMERCIAL REAL ESTATE CORPORATION#26①ARES