Investor Presentaiton

Core Earnings Reconciliation The Company believes the disclosure of Core Earnings provides useful information to investors regarding the calculation of incentive fees the Company pays to its manager, Ares Commercial Real Estate Management LLC, and the Company's financial performance. Core Earnings is an adjusted non-GAAP measure that 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. 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. Core Earnings is defined as net income (loss) computed in accordance with GAAP, excluding non-cash equity compensation expense, the incentive fee, 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), onetime 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. ($ in thousands, except per share data) Net income (loss) attributable to common stockholders Stock-based compensation Incentive fees to affiliate Depreciation of real estate owned Provision for current expected credit losses Unrealized losses on loans held for sale Core Earnings Net income (loss) attributable to common stockholders Stock-based compensation Incentive fees to affiliate Depreciation of real estate owned Provision for current expected credit losses Unrealized losses on loans held for sale Basic Core Earnings per common share Net income (loss) attributable to common stockholders Stock-based compensation Incentive fees to affiliate Depreciation of real estate owned Provision for current expected credit losses Unrealized losses on loans held for sale Diluted Core Earnings per common share SS 6/30/2020 3/31/2020 For the Three Months Ended 12/31/2019 9/30/2019 6/30/2019 9,768 $ 365 (17,263) $ 225 9,660 9,034 $ 9,755 482 479 427 303 378 674 224 221 219 207 188 (4,007) 27,117 3,998 $ 10,651 10,300 $ 10,739 9,720 $ 11,044 0.29 $ (0.54) $ 0.34 $ 0.32 $ 0.34 0.01 0.01 0.02 0.02 0.01 0.01 0.01 0.02 0.01 0.01 0.01 0.01 0.01 (0.12) 0.85 0.12 $ 0.32 0.32 0.38 $ 0.34 $ 0.39 0.29 (0.54) $ 0.33 0.31 $ 0.34 0.01 0.01 0.02 0.02 0.01 0.01 0.01 0.02 0.01 0.01 0.01 0.01 0.01 (0.12) 0.84 0.12 0.32 $ 0.32 $ 0.37 0.34 $ 0.38 SS SS 20 ARES COMMERCIAL REAL ESTATE CORPORATION

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