10-Q 1 acre-20220331.htm 10-Q acre-20220331
0001529377FALSEDecember 312022Q1P1Y00015293772022-01-012022-03-3100015293772022-05-02xbrli:shares00015293772022-03-31iso4217:USD00015293772021-12-310001529377us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-03-310001529377us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-12-31iso4217:USDxbrli:shares00015293772021-01-012021-03-310001529377us-gaap:CommonStockMember2020-12-310001529377us-gaap:AdditionalPaidInCapitalMember2020-12-310001529377us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001529377us-gaap:RetainedEarningsMember2020-12-3100015293772020-12-310001529377us-gaap:CommonStockMember2021-01-012021-03-310001529377us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001529377us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001529377us-gaap:RetainedEarningsMember2021-01-012021-03-310001529377us-gaap:CommonStockMember2021-03-310001529377us-gaap:AdditionalPaidInCapitalMember2021-03-310001529377us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001529377us-gaap:RetainedEarningsMember2021-03-3100015293772021-03-310001529377us-gaap:CommonStockMember2021-04-012021-06-300001529377us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-3000015293772021-04-012021-06-300001529377us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001529377us-gaap:RetainedEarningsMember2021-04-012021-06-300001529377us-gaap:CommonStockMember2021-06-300001529377us-gaap:AdditionalPaidInCapitalMember2021-06-300001529377us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001529377us-gaap:RetainedEarningsMember2021-06-3000015293772021-06-300001529377us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-3000015293772021-07-012021-09-300001529377us-gaap:CommonStockMember2021-07-012021-09-300001529377us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001529377us-gaap:RetainedEarningsMember2021-07-012021-09-300001529377us-gaap:CommonStockMember2021-09-300001529377us-gaap:AdditionalPaidInCapitalMember2021-09-300001529377us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001529377us-gaap:RetainedEarningsMember2021-09-3000015293772021-09-300001529377us-gaap:CommonStockMember2021-10-012021-12-310001529377us-gaap:AdditionalPaidInCapitalMember2021-10-012021-12-3100015293772021-10-012021-12-310001529377us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-012021-12-310001529377us-gaap:RetainedEarningsMember2021-10-012021-12-310001529377us-gaap:CommonStockMember2021-12-310001529377us-gaap:AdditionalPaidInCapitalMember2021-12-310001529377us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001529377us-gaap:RetainedEarningsMember2021-12-310001529377us-gaap:CommonStockMember2022-01-012022-03-310001529377us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001529377us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001529377us-gaap:RetainedEarningsMember2022-01-012022-03-310001529377us-gaap:CommonStockMember2022-03-310001529377us-gaap:AdditionalPaidInCapitalMember2022-03-310001529377us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001529377us-gaap:RetainedEarningsMember2022-03-310001529377acre:SecuredFundingAgreementsMember2022-01-012022-03-310001529377acre:SecuredFundingAgreementsMember2021-01-012021-03-310001529377acre:SecuredTermLoanMember2022-01-012022-03-310001529377acre:SecuredTermLoanMember2021-01-012021-03-31acre:segment0001529377us-gaap:BuildingAndBuildingImprovementsMembersrt:MaximumMember2022-01-012022-03-310001529377us-gaap:FurnitureAndFixturesMember2022-01-012022-03-310001529377acre:OfferedCertificatesAndOfferedNotesMember2022-01-012022-03-310001529377acre:OfferedCertificatesAndOfferedNotesMember2021-01-012021-03-310001529377us-gaap:NotesPayableToBanksMember2022-01-012022-03-310001529377us-gaap:NotesPayableToBanksMember2021-01-012021-03-310001529377us-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2022-01-012022-03-310001529377us-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2021-01-012021-03-310001529377acre:SecuredTermLoanMember2022-01-012022-03-310001529377acre:SecuredTermLoanMember2021-01-012021-03-310001529377acre:SecuredBorrowingsMember2022-01-012022-03-310001529377acre:SecuredBorrowingsMember2021-01-012021-03-310001529377us-gaap:OtherDebtSecuritiesMember2022-01-012022-03-310001529377us-gaap:OtherDebtSecuritiesMember2021-01-012021-03-310001529377acre:NotesPayableDueJune102024Memberus-gaap:NotesPayableToBanksMemberstpr:NY2019-06-012019-06-30acre:loanxbrli:pure0001529377us-gaap:MortgageReceivablesMember2022-03-310001529377us-gaap:MortgageReceivablesMember2022-01-012022-03-310001529377acre:SubordinatedDebtAndPreferredEquityInvestmentsInMortgageLoansMember2022-03-310001529377acre:SubordinatedDebtAndPreferredEquityInvestmentsInMortgageLoansMember2022-01-012022-03-310001529377us-gaap:MortgageReceivablesMember2021-12-310001529377us-gaap:MortgageReceivablesMember2021-01-012021-03-310001529377acre:SubordinatedDebtAndPreferredEquityInvestmentsInMortgageLoansMember2021-12-310001529377acre:SubordinatedDebtAndPreferredEquityInvestmentsInMortgageLoansMember2021-01-012021-03-310001529377srt:OfficeBuildingMemberstpr:ILacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point61PercentDueMarch2023Member2022-03-310001529377srt:OfficeBuildingMemberstpr:ILacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMemberacre:LIBORPlus3Point61PercentDueMarch2023Member2022-03-310001529377srt:OfficeBuildingMemberstpr:ILacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point61PercentDueMarch2023Member2022-01-012022-03-310001529377srt:OfficeBuildingMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point65PercentDueJanuary2023Memberacre:DiversifiedPropertiesMember2022-03-310001529377srt:OfficeBuildingMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point65PercentDueJanuary2023Memberus-gaap:LondonInterbankOfferedRateLIBORMemberacre:DiversifiedPropertiesMember2022-03-310001529377srt:OfficeBuildingMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point65PercentDueJanuary2023Memberacre:DiversifiedPropertiesMember2022-01-012022-03-310001529377stpr:ILacre:LIBORPlus4Point55PercentDueMay2024Membersrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMember2022-03-310001529377stpr:ILacre:LIBORPlus4Point55PercentDueMay2024Membersrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:ILacre:LIBORPlus4Point55PercentDueMay2024Membersrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMember2022-01-012022-03-310001529377stpr:FLacre:SeniorMortgageLoansMemberacre:MixedUseMemberacre:LIBORPlus4Point25PercentDueFebruary2023InstrumentMember2022-03-310001529377stpr:FLacre:SeniorMortgageLoansMemberacre:MixedUseMemberus-gaap:LondonInterbankOfferedRateLIBORMemberacre:LIBORPlus4Point25PercentDueFebruary2023InstrumentMember2022-03-310001529377stpr:FLacre:SeniorMortgageLoansMemberacre:MixedUseMemberacre:LIBORPlus4Point25PercentDueFebruary2023InstrumentMember2022-01-012022-03-310001529377stpr:AZsrt:OfficeBuildingMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point50PercentDueOctober2024Member2022-03-310001529377srt:OfficeBuildingMemberstpr:AZacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point50PercentDueOctober2024Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:AZsrt:OfficeBuildingMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point50PercentDueOctober2024Member2022-01-012022-03-310001529377stpr:NYacre:LIBORPlus3Point65PercentDueJuly2024Memberacre:SeniorMortgageLoansMemberacre:MixedUseMember2022-03-310001529377stpr:NYacre:LIBORPlus3Point65PercentDueJuly2024Memberacre:SeniorMortgageLoansMemberacre:MixedUseMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:NYacre:LIBORPlus3Point65PercentDueJuly2024Memberacre:SeniorMortgageLoansMemberacre:MixedUseMember2022-01-012022-03-310001529377srt:OfficeBuildingMemberacre:LIBORPlus4Point25PercentDueMarch2023Memberacre:SeniorMortgageLoansMemberstpr:NC2022-03-310001529377srt:OfficeBuildingMemberacre:LIBORPlus4Point25PercentDueMarch2023Memberacre:SeniorMortgageLoansMemberstpr:NCus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377srt:OfficeBuildingMemberacre:LIBORPlus4Point25PercentDueMarch2023Memberacre:SeniorMortgageLoansMemberstpr:NC2022-01-012022-03-310001529377acre:LIBORPlus3Point45PercentDueMay2022Memberacre:SeniorMortgageLoansMemberacre:OregonandWashingtonMembersrt:HotelMember2022-03-310001529377acre:LIBORPlus3Point45PercentDueMay2022Memberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMemberacre:OregonandWashingtonMembersrt:HotelMember2022-03-310001529377acre:LIBORPlus3Point45PercentDueMay2022Memberacre:SeniorMortgageLoansMemberacre:OregonandWashingtonMembersrt:HotelMember2022-01-012022-03-310001529377stpr:FLacre:SeniorMortgageLoansMemberacre:ResidentialCondominiumMemberacre:LIBORPlus5Point25PercentDueJuly2023Member2022-03-310001529377stpr:FLacre:SeniorMortgageLoansMemberacre:ResidentialCondominiumMemberus-gaap:LondonInterbankOfferedRateLIBORMemberacre:LIBORPlus5Point25PercentDueJuly2023Member2022-03-310001529377stpr:FLacre:SeniorMortgageLoansMemberacre:ResidentialCondominiumMemberacre:LIBORPlus5Point25PercentDueJuly2023Member2022-01-012022-03-310001529377acre:MultifamilyAndOfficeMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus2Point90PercentDueNovember2024Memberstpr:SC2022-03-310001529377acre:MultifamilyAndOfficeMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus2Point90PercentDueNovember2024Memberus-gaap:LondonInterbankOfferedRateLIBORMemberstpr:SC2022-03-310001529377acre:MultifamilyAndOfficeMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus2Point90PercentDueNovember2024Memberstpr:SC2022-01-012022-03-310001529377stpr:TXsrt:MultifamilyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus2Point85PercentDueDecember2024Member2022-03-310001529377stpr:TXsrt:MultifamilyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus2Point85PercentDueDecember2024Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:TXsrt:MultifamilyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus2Point85PercentDueDecember2024Member2022-01-012022-03-310001529377srt:OfficeBuildingMemberacre:SeniorMortgageLoansMemberstpr:NCacre:LIBORPlus3Point55PercentDueAugust2024Member2022-03-310001529377srt:OfficeBuildingMemberacre:SeniorMortgageLoansMemberstpr:NCacre:LIBORPlus3Point55PercentDueAugust2024Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377srt:OfficeBuildingMemberacre:SeniorMortgageLoansMemberstpr:NCacre:LIBORPlus3Point55PercentDueAugust2024Member2022-01-012022-03-310001529377srt:OfficeBuildingMemberstpr:NYacre:LIBORPlus3Point85PercentDueAugust2025Memberacre:SeniorMortgageLoansMember2022-03-310001529377srt:OfficeBuildingMemberstpr:NYacre:LIBORPlus3Point85PercentDueAugust2025Memberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377srt:OfficeBuildingMemberstpr:NYacre:LIBORPlus3Point85PercentDueAugust2025Memberacre:SeniorMortgageLoansMember2022-01-012022-03-310001529377acre:SOFRPlus8Point95PercentDueOctober2023Memberstpr:NYacre:SeniorMortgageLoansMemberacre:ResidentialCondominiumMember2022-03-310001529377us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberacre:SOFRPlus8Point95PercentDueOctober2023Memberstpr:NYacre:SeniorMortgageLoansMemberacre:ResidentialCondominiumMember2022-03-310001529377acre:SOFRPlus8Point95PercentDueOctober2023Memberstpr:NYacre:SeniorMortgageLoansMemberacre:ResidentialCondominiumMember2022-01-012022-03-310001529377srt:OfficeBuildingMemberstpr:ILacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point75PercentDueDecember2022Member2022-03-310001529377srt:OfficeBuildingMemberstpr:ILacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point75PercentDueDecember2022Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377srt:OfficeBuildingMemberstpr:ILacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point75PercentDueDecember2022Member2022-01-012022-03-310001529377acre:LIBORPlus3Point60PercentDueSeptember2022Memberacre:SeniorMortgageLoansMemberacre:DiversifiedPropertiesMembersrt:HotelMember2022-03-310001529377acre:LIBORPlus3Point60PercentDueSeptember2022Memberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMemberacre:DiversifiedPropertiesMembersrt:HotelMember2022-03-310001529377acre:LIBORPlus3Point60PercentDueSeptember2022Memberacre:SeniorMortgageLoansMemberacre:DiversifiedPropertiesMembersrt:HotelMember2022-01-012022-03-310001529377stpr:CAacre:SeniorMortgageLoansMemberacre:MixedUseMember2022-03-310001529377stpr:CAacre:SeniorMortgageLoansMemberacre:MixedUseMember2022-01-012022-03-310001529377srt:OfficeBuildingMemberstpr:ILacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point95PercentDueJun2022Member2022-03-310001529377srt:OfficeBuildingMemberstpr:ILacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point95PercentDueJun2022Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377srt:OfficeBuildingMemberstpr:ILacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point95PercentDueJun2022Member2022-01-012022-03-310001529377acre:LIBORPlus3Point80PercentDueFebruary2024Memberstpr:NJacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-03-310001529377acre:LIBORPlus3Point80PercentDueFebruary2024Memberstpr:NJacre:SeniorMortgageLoansMemberacre:SelfStorageMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377acre:LIBORPlus3Point80PercentDueFebruary2024Memberstpr:NJacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-01-012022-03-310001529377srt:OfficeBuildingMemberacre:LIBORPlus3Point05PercentDueDecember2022Memberacre:SeniorMortgageLoansMemberstpr:GA2022-03-310001529377srt:OfficeBuildingMemberacre:LIBORPlus3Point05PercentDueDecember2022Memberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMemberstpr:GA2022-03-310001529377srt:OfficeBuildingMemberacre:LIBORPlus3Point05PercentDueDecember2022Memberacre:SeniorMortgageLoansMemberstpr:GA2022-01-012022-03-310001529377stpr:CAacre:SeniorMortgageLoansMemberacre:LIBORPlus4Point12PercentDueJanuary2023Membersrt:HotelMember2022-03-310001529377stpr:CAacre:SeniorMortgageLoansMemberacre:LIBORPlus4Point12PercentDueJanuary2023Membersrt:HotelMember2022-01-012022-03-310001529377stpr:CAacre:LIBORPlus4Point20PercentDueMarch2025Memberacre:SeniorMortgageLoansMembersrt:HotelMember2022-03-310001529377stpr:CAacre:LIBORPlus4Point20PercentDueMarch2025Memberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:HotelMember2022-03-310001529377stpr:CAacre:LIBORPlus4Point20PercentDueMarch2025Memberacre:SeniorMortgageLoansMembersrt:HotelMember2022-01-012022-03-310001529377stpr:CAacre:SeniorMortgageLoansMemberacre:MixedUseMemberacre:LIBORPlus4Point10PercentDueMarch2023Member2022-03-310001529377stpr:CAacre:SeniorMortgageLoansMemberacre:MixedUseMemberacre:LIBORPlus4Point10PercentDueMarch2023Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:CAacre:SeniorMortgageLoansMemberacre:MixedUseMemberacre:LIBORPlus4Point10PercentDueMarch2023Member2022-01-012022-03-310001529377srt:MultifamilyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus2Point75PercentDueJune2023Memberstpr:SC2022-03-310001529377srt:MultifamilyMemberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMemberacre:LIBORPlus2Point75PercentDueJune2023Memberstpr:SC2022-03-310001529377srt:MultifamilyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus2Point75PercentDueJune2023Memberstpr:SC2022-01-012022-03-310001529377stpr:CAacre:SeniorMortgageLoansMemberacre:StudentHousingPropertyMemberacre:LIBORPlus3Point95PercentDueJuly2022Member2022-03-310001529377stpr:CAacre:SeniorMortgageLoansMemberacre:StudentHousingPropertyMemberus-gaap:LondonInterbankOfferedRateLIBORMemberacre:LIBORPlus3Point95PercentDueJuly2022Member2022-03-310001529377stpr:CAacre:SeniorMortgageLoansMemberacre:StudentHousingPropertyMemberacre:LIBORPlus3Point95PercentDueJuly2022Member2022-01-012022-03-310001529377stpr:TXacre:SeniorMortgageLoansMemberacre:MixedUseMember2022-03-310001529377stpr:TXacre:SeniorMortgageLoansMemberacre:MixedUseMember2022-01-012022-03-310001529377stpr:ILacre:SOFRPlus4Point00PercentDueMay2024Memberacre:SeniorMortgageLoansMembersrt:HotelMember2022-03-310001529377us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberstpr:ILacre:SOFRPlus4Point00PercentDueMay2024Memberacre:SeniorMortgageLoansMembersrt:HotelMember2022-03-310001529377stpr:ILacre:SOFRPlus4Point00PercentDueMay2024Memberacre:SeniorMortgageLoansMembersrt:HotelMember2022-01-012022-03-310001529377srt:MultifamilyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus6Point50PercentDueSeptember2022Memberstpr:SC2022-03-310001529377srt:MultifamilyMemberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMemberacre:LIBORPlus6Point50PercentDueSeptember2022Memberstpr:SC2022-03-310001529377srt:MultifamilyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus6Point50PercentDueSeptember2022Memberstpr:SC2022-01-012022-03-310001529377acre:LIBORPlus3Point95PercentDueJuly2022InstrumentTwoMemberacre:SeniorMortgageLoansMemberstpr:MIsrt:HotelMember2022-03-310001529377acre:LIBORPlus3Point95PercentDueJuly2022InstrumentTwoMemberacre:SeniorMortgageLoansMemberstpr:MIus-gaap:LondonInterbankOfferedRateLIBORMembersrt:HotelMember2022-03-310001529377acre:LIBORPlus3Point95PercentDueJuly2022InstrumentTwoMemberacre:SeniorMortgageLoansMemberstpr:MIsrt:HotelMember2022-01-012022-03-310001529377stpr:CAacre:LIBORPlus3Point35PercentDueNovember2022Membersrt:OfficeBuildingMemberacre:SeniorMortgageLoansMember2022-03-310001529377stpr:CAacre:LIBORPlus3Point35PercentDueNovember2022Membersrt:OfficeBuildingMemberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:CAacre:LIBORPlus3Point35PercentDueNovember2022Membersrt:OfficeBuildingMemberacre:SeniorMortgageLoansMember2022-01-012022-03-310001529377stpr:CAacre:LIBORPlus2Point90PercentDueDecember2025Membersrt:MultifamilyMemberacre:SeniorMortgageLoansMember2022-03-310001529377stpr:CAacre:LIBORPlus2Point90PercentDueDecember2025Membersrt:MultifamilyMemberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:CAacre:LIBORPlus2Point90PercentDueDecember2025Membersrt:MultifamilyMemberacre:SeniorMortgageLoansMember2022-01-012022-03-310001529377stpr:NYacre:SeniorMortgageLoansMemberacre:SOFRPlus4Point40PercentDueMarch2026Membersrt:HotelMember2022-03-310001529377us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberstpr:NYacre:SeniorMortgageLoansMemberacre:SOFRPlus4Point40PercentDueMarch2026Membersrt:HotelMember2022-03-310001529377stpr:NYacre:SeniorMortgageLoansMemberacre:SOFRPlus4Point40PercentDueMarch2026Membersrt:HotelMember2022-01-012022-03-310001529377stpr:PAsrt:MultifamilyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point00PercentDueDecember2022Member2022-03-310001529377stpr:PAsrt:MultifamilyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point00PercentDueDecember2022Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:PAsrt:MultifamilyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point00PercentDueDecember2022Member2022-01-012022-03-310001529377srt:OfficeBuildingMemberstpr:ILacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point80PercentDueJanuary2023Member2022-03-310001529377srt:OfficeBuildingMemberstpr:ILacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point80PercentDueJanuary2023Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377srt:OfficeBuildingMemberstpr:ILacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point80PercentDueJanuary2023Member2022-01-012022-03-310001529377srt:OfficeBuildingMemberacre:LIBORPlus3Point53PercentDueMay2023Memberacre:SeniorMortgageLoansMemberstpr:NC2022-03-310001529377srt:OfficeBuildingMemberacre:LIBORPlus3Point53PercentDueMay2023Memberacre:SeniorMortgageLoansMemberstpr:NCus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377srt:OfficeBuildingMemberacre:LIBORPlus3Point53PercentDueMay2023Memberacre:SeniorMortgageLoansMemberstpr:NC2022-01-012022-03-310001529377stpr:FLsrt:IndustrialPropertyMemberacre:LIBORPlus2Point90PercentDueDecember2025Instrument2Memberacre:SeniorMortgageLoansMember2022-03-310001529377stpr:FLsrt:IndustrialPropertyMemberacre:LIBORPlus2Point90PercentDueDecember2025Instrument2Memberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:FLsrt:IndustrialPropertyMemberacre:LIBORPlus2Point90PercentDueDecember2025Instrument2Memberacre:SeniorMortgageLoansMember2022-01-012022-03-310001529377srt:IndustrialPropertyMemberstpr:COacre:SeniorMortgageLoansMember2022-03-310001529377srt:IndustrialPropertyMemberstpr:COacre:SeniorMortgageLoansMember2022-01-012022-03-310001529377stpr:NJsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point75PercentDueMay2024Member2022-03-310001529377stpr:NJsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point75PercentDueMay2024Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:NJsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point75PercentDueMay2024Member2022-01-012022-03-310001529377srt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus2Point90PercentDueNovember2025Memberstpr:WA2022-03-310001529377srt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus2Point90PercentDueNovember2025Memberus-gaap:LondonInterbankOfferedRateLIBORMemberstpr:WA2022-03-310001529377srt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus2Point90PercentDueNovember2025Memberstpr:WA2022-01-012022-03-310001529377stpr:CAsrt:OfficeBuildingMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point40PercentDueNovember2022Member2022-03-310001529377stpr:CAsrt:OfficeBuildingMemberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMemberacre:LIBORPlus3Point40PercentDueNovember2022Member2022-03-310001529377stpr:CAsrt:OfficeBuildingMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point40PercentDueNovember2022Member2022-01-012022-03-310001529377stpr:FLacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point25PercentDueAugust2022Memberacre:StudentHousingPropertyMember2022-03-310001529377stpr:FLacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point25PercentDueAugust2022Memberacre:StudentHousingPropertyMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:FLacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point25PercentDueAugust2022Memberacre:StudentHousingPropertyMember2022-01-012022-03-310001529377stpr:TXacre:LIBORPlus2Point50PercentDueOctober2024Membersrt:MultifamilyMemberacre:SeniorMortgageLoansMember2022-03-310001529377stpr:TXacre:LIBORPlus2Point50PercentDueOctober2024Membersrt:MultifamilyMemberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:TXacre:LIBORPlus2Point50PercentDueOctober2024Membersrt:MultifamilyMemberacre:SeniorMortgageLoansMember2022-01-012022-03-310001529377stpr:CAsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point75PercentDueMarch2023Member2022-03-310001529377stpr:CAsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMemberacre:LIBORPlus3Point75PercentDueMarch2023Member2022-03-310001529377stpr:CAsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point75PercentDueMarch2023Member2022-01-012022-03-310001529377stpr:ALsrt:IndustrialPropertyMemberacre:LIBORPlus3Point85PercentDueMay2024Memberacre:SeniorMortgageLoansMember2022-03-310001529377stpr:ALsrt:IndustrialPropertyMemberacre:LIBORPlus3Point85PercentDueMay2024Memberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:ALsrt:IndustrialPropertyMemberacre:LIBORPlus3Point85PercentDueMay2024Memberacre:SeniorMortgageLoansMember2022-01-012022-03-310001529377srt:MultifamilyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point00PercentDueMarch2023Memberstpr:WA2022-03-310001529377srt:MultifamilyMemberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMemberacre:LIBORPlus3Point00PercentDueMarch2023Memberstpr:WA2022-03-310001529377srt:MultifamilyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus3Point00PercentDueMarch2023Memberstpr:WA2022-01-012022-03-310001529377acre:LIBORPlus2Point90PercentDueDecember2025Instrument3Memberstpr:PAacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-03-310001529377acre:LIBORPlus2Point90PercentDueDecember2025Instrument3Memberstpr:PAacre:SeniorMortgageLoansMemberacre:SelfStorageMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377acre:LIBORPlus2Point90PercentDueDecember2025Instrument3Memberstpr:PAacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-01-012022-03-310001529377stpr:CAsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMember2022-03-310001529377stpr:CAsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:CAsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMember2022-01-012022-03-310001529377acre:LIBORPlus3Point05PercentDueOctober2024Instrument5Memberstpr:PAacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-03-310001529377acre:LIBORPlus3Point05PercentDueOctober2024Instrument5Memberstpr:PAacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-01-012022-03-310001529377acre:LIBORPlus3Point05PercentDueOctober2024Instrument1Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MD2022-03-310001529377acre:LIBORPlus3Point05PercentDueOctober2024Instrument1Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MDus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377acre:LIBORPlus3Point05PercentDueOctober2024Instrument1Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MD2022-01-012022-03-310001529377acre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MDacre:LIBORPlus3Point05PercentDueOctober2024Instrument2Member2022-03-310001529377acre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MDus-gaap:LondonInterbankOfferedRateLIBORMemberacre:LIBORPlus3Point05PercentDueOctober2024Instrument2Member2022-03-310001529377acre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MDacre:LIBORPlus3Point05PercentDueOctober2024Instrument2Member2022-01-012022-03-310001529377stpr:FLacre:LIBORPlus2Point90PercentDueDecember2023Instrument1Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-03-310001529377stpr:FLacre:LIBORPlus2Point90PercentDueDecember2023Instrument1Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:FLacre:LIBORPlus2Point90PercentDueDecember2023Instrument1Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-01-012022-03-310001529377stpr:TXsrt:IndustrialPropertyMemberacre:LIBORPlus5Point25PercentDueDecember2024Memberacre:SeniorMortgageLoansMember2022-03-310001529377stpr:TXsrt:IndustrialPropertyMemberacre:LIBORPlus5Point25PercentDueDecember2024Memberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:TXsrt:IndustrialPropertyMemberacre:LIBORPlus5Point25PercentDueDecember2024Memberacre:SeniorMortgageLoansMember2022-01-012022-03-310001529377acre:LIBORPlus3Point05PercentDueOctober2024Instrument3Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:WA2022-03-310001529377acre:LIBORPlus3Point05PercentDueOctober2024Instrument3Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberus-gaap:LondonInterbankOfferedRateLIBORMemberstpr:WA2022-03-310001529377acre:LIBORPlus3Point05PercentDueOctober2024Instrument3Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:WA2022-01-012022-03-310001529377acre:LIBORPlus4Point00PercentDueNovember2022Membersrt:OfficeBuildingMemberacre:SeniorMortgageLoansMemberstpr:NC2022-03-310001529377acre:LIBORPlus4Point00PercentDueNovember2022Membersrt:OfficeBuildingMemberacre:SeniorMortgageLoansMemberstpr:NCus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377acre:LIBORPlus4Point00PercentDueNovember2022Membersrt:OfficeBuildingMemberacre:SeniorMortgageLoansMemberstpr:NC2022-01-012022-03-310001529377acre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MOacre:LIBORPlus3Point05PercentDueOctober2024Instrument4Member2022-03-310001529377acre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MOacre:LIBORPlus3Point05PercentDueOctober2024Instrument4Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377acre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MOacre:LIBORPlus3Point05PercentDueOctober2024Instrument4Member2022-01-012022-03-310001529377stpr:AZacre:LIBORPlus2Point90PercentDueMay2024Instrument1Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-03-310001529377stpr:AZacre:LIBORPlus2Point90PercentDueMay2024Instrument1Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:AZacre:LIBORPlus2Point90PercentDueMay2024Instrument1Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-01-012022-03-310001529377stpr:MAacre:SeniorMortgageLoansMemberacre:SelfStorageMemberacre:LIBORPlus2Point90PercentDueDecember2024Member2022-03-310001529377acre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MAus-gaap:LondonInterbankOfferedRateLIBORMemberacre:LIBORPlus2Point90PercentDueDecember2024Member2022-03-310001529377stpr:MAacre:SeniorMortgageLoansMemberacre:SelfStorageMemberacre:LIBORPlus2Point90PercentDueDecember2024Member2022-01-012022-03-310001529377stpr:PAsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus5Point50PercentDueSeptember2024Member2022-03-310001529377stpr:PAsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus5Point50PercentDueSeptember2024Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:PAsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:LIBORPlus5Point50PercentDueSeptember2024Member2022-01-012022-03-310001529377acre:LIBORPlus5Point90PercentDueNovember2024Memberstpr:FLsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMember2022-03-310001529377acre:LIBORPlus5Point90PercentDueNovember2024Memberstpr:FLsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377acre:LIBORPlus5Point90PercentDueNovember2024Memberstpr:FLsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMember2022-01-012022-03-310001529377stpr:AZacre:LIBORPlus2Point90PercentDueMay2024Instrument2Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-03-310001529377stpr:AZacre:LIBORPlus2Point90PercentDueMay2024Instrument2Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:AZacre:LIBORPlus2Point90PercentDueMay2024Instrument2Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-01-012022-03-310001529377acre:LIBORPlus5Point90PercentDueNovember2024Instrument2Memberstpr:PAsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMember2022-03-310001529377acre:LIBORPlus5Point90PercentDueNovember2024Instrument2Memberstpr:PAsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377acre:LIBORPlus5Point90PercentDueNovember2024Instrument2Memberstpr:PAsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMember2022-01-012022-03-310001529377stpr:FLacre:SeniorMortgageLoansMemberacre:SelfStorageMemberacre:LIBORPlus2Point90PercentDueDecember2023Instrument2Member2022-03-310001529377stpr:FLacre:SeniorMortgageLoansMemberacre:SelfStorageMemberus-gaap:LondonInterbankOfferedRateLIBORMemberacre:LIBORPlus2Point90PercentDueDecember2023Instrument2Member2022-03-310001529377stpr:FLacre:SeniorMortgageLoansMemberacre:SelfStorageMemberacre:LIBORPlus2Point90PercentDueDecember2023Instrument2Member2022-01-012022-03-310001529377srt:IndustrialPropertyMemberacre:LIBORPlus5Point50PercentDueNovember2024Memberacre:SeniorMortgageLoansMemberstpr:TN2022-03-310001529377srt:IndustrialPropertyMemberacre:LIBORPlus5Point50PercentDueNovember2024Memberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMemberstpr:TN2022-03-310001529377srt:IndustrialPropertyMemberacre:LIBORPlus5Point50PercentDueNovember2024Memberacre:SeniorMortgageLoansMemberstpr:TN2022-01-012022-03-310001529377stpr:FLacre:LIBORPlus2Point90PercentDueDecember2023Instrument3Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-03-310001529377stpr:FLacre:LIBORPlus2Point90PercentDueDecember2023Instrument3Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:FLacre:LIBORPlus2Point90PercentDueDecember2023Instrument3Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-01-012022-03-310001529377acre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MOacre:LIBORPlus3Point00PercentDueDecember2023Instrument1Member2022-03-310001529377acre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MOacre:LIBORPlus3Point00PercentDueDecember2023Instrument1Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377acre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MOacre:LIBORPlus3Point00PercentDueDecember2023Instrument1Member2022-01-012022-03-310001529377stpr:FLsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:SOFRPlus5Point90PercentDueFebruary2025Member2022-03-310001529377us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberstpr:FLsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:SOFRPlus5Point90PercentDueFebruary2025Member2022-03-310001529377stpr:FLsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:SOFRPlus5Point90PercentDueFebruary2025Member2022-01-012022-03-310001529377stpr:NJacre:SeniorMortgageLoansMemberacre:LIBORPlus2Point90PercentDueJuly2024Memberacre:SelfStorageMember2022-03-310001529377stpr:NJacre:SeniorMortgageLoansMemberacre:SelfStorageMemberacre:LIBORPlus2Point90PercentDueJuly2024Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:NJacre:SeniorMortgageLoansMemberacre:LIBORPlus2Point90PercentDueJuly2024Memberacre:SelfStorageMember2022-01-012022-03-310001529377stpr:ILacre:LIBORPlus3Point00PercentDueDecember2023Instrument2Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-03-310001529377stpr:ILacre:LIBORPlus3Point00PercentDueDecember2023Instrument2Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:ILacre:LIBORPlus3Point00PercentDueDecember2023Instrument2Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-01-012022-03-310001529377acre:LIBORPlus2Point90PercentDueJuly2024Instrument2Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:WI2022-03-310001529377acre:LIBORPlus2Point90PercentDueJuly2024Instrument2Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberus-gaap:LondonInterbankOfferedRateLIBORMemberstpr:WI2022-03-310001529377acre:LIBORPlus2Point90PercentDueJuly2024Instrument2Memberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:WI2022-01-012022-03-310001529377stpr:FLsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:SOFRPlus5Point75PercentDueMarch2025Member2022-03-310001529377us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberstpr:FLsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:SOFRPlus5Point75PercentDueMarch2025Member2022-03-310001529377stpr:FLsrt:IndustrialPropertyMemberacre:SeniorMortgageLoansMemberacre:SOFRPlus5Point75PercentDueMarch2025Member2022-01-012022-03-310001529377acre:LIBORPlus2Point90PercentDueDecember2023Instrument5Memberstpr:FLacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-03-310001529377acre:LIBORPlus2Point90PercentDueDecember2023Instrument5Memberstpr:FLacre:SeniorMortgageLoansMemberacre:SelfStorageMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377acre:LIBORPlus2Point90PercentDueDecember2023Instrument5Memberstpr:FLacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-01-012022-03-310001529377stpr:COacre:SeniorMortgageLoansMemberacre:SelfStorageMemberacre:LIBORPlus2Point90PercentDueApril2024Member2022-03-310001529377stpr:COacre:SeniorMortgageLoansMemberacre:SelfStorageMemberacre:LIBORPlus2Point90PercentDueApril2024Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:COacre:SeniorMortgageLoansMemberacre:SelfStorageMemberacre:LIBORPlus2Point90PercentDueApril2024Member2022-01-012022-03-310001529377acre:LIBORPlus6Point25PercentDueSeptember2024Membersrt:IndustrialPropertyMemberstpr:COacre:SeniorMortgageLoansMember2022-03-310001529377acre:LIBORPlus6Point25PercentDueSeptember2024Membersrt:IndustrialPropertyMemberstpr:COacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377acre:LIBORPlus6Point25PercentDueSeptember2024Membersrt:IndustrialPropertyMemberstpr:COacre:SeniorMortgageLoansMember2022-01-012022-03-310001529377stpr:TXacre:SeniorMortgageLoansMemberacre:LIBORPlus2Point90PercentDueSeptember2024Memberacre:SelfStorageMember2022-03-310001529377stpr:TXacre:SeniorMortgageLoansMemberacre:SelfStorageMemberacre:LIBORPlus2Point90PercentDueSeptember2024Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:TXacre:SeniorMortgageLoansMemberacre:LIBORPlus2Point90PercentDueSeptember2024Memberacre:SelfStorageMember2022-01-012022-03-310001529377stpr:AZsrt:IndustrialPropertyMemberacre:LIBORPlus5Point90PercentDueOctober2024Memberacre:SeniorMortgageLoansMember2022-03-310001529377stpr:AZsrt:IndustrialPropertyMemberacre:LIBORPlus5Point90PercentDueOctober2024Memberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:AZsrt:IndustrialPropertyMemberacre:LIBORPlus5Point90PercentDueOctober2024Memberacre:SeniorMortgageLoansMember2022-01-012022-03-310001529377srt:IndustrialPropertyMemberacre:LIBORPlus5Point25PercentDueSeptember2024Memberacre:SeniorMortgageLoansMemberstpr:GA2022-03-310001529377srt:IndustrialPropertyMemberacre:LIBORPlus5Point25PercentDueSeptember2024Memberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMemberstpr:GA2022-03-310001529377srt:IndustrialPropertyMemberacre:LIBORPlus5Point25PercentDueSeptember2024Memberacre:SeniorMortgageLoansMemberstpr:GA2022-01-012022-03-310001529377srt:OfficeBuildingMemberstpr:NJacre:SubordinatedDebtAndPreferredEquityInvestmentsInMortgageLoansMember2022-03-310001529377srt:OfficeBuildingMemberstpr:NJacre:SubordinatedDebtAndPreferredEquityInvestmentsInMortgageLoansMember2022-01-012022-03-310001529377srt:MinimumMember2022-01-012022-03-31acre:option0001529377srt:MaximumMember2022-01-012022-03-310001529377srt:OfficeBuildingMemberacre:SeniorMortgageLoansMemberstpr:NCacre:LIBORPlus3Point55PercentDueAugust2024Member2022-03-012022-03-310001529377stpr:NYacre:SeniorMortgageLoansMemberacre:ResidentialCondominiumMember2021-12-310001529377stpr:CAacre:LIBORPlus3Point80PercentDueJanuary2024Memberacre:SeniorMortgageLoansMemberacre:MixedUseMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377stpr:CAacre:SeniorMortgageLoansMemberacre:MixedUseMemberacre:MezzanineAnnualFixedRateFifteenPercentLoanMember2022-03-310001529377stpr:CAacre:MixedUseMember2022-01-012022-03-310001529377stpr:TXacre:SeniorMortgageLoansMember2021-03-012021-03-310001529377stpr:TXacre:LIBORPlus3Point75PercentNoteAMemberacre:SeniorMortgageLoansMember2022-03-310001529377stpr:TXacre:LIBORPlus10Point00PercentNoteBMemberacre:SeniorMortgageLoansMember2022-03-310001529377stpr:ILacre:LIBORPlus4Point40PercentDueSeptember2022Memberacre:SeniorMortgageLoansMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:HotelMember2022-02-280001529377srt:IndustrialPropertyMemberstpr:COacre:SeniorMortgageLoansMemberacre:LIBORPlus6Point75PercentDueFebruary2023Member2022-03-310001529377srt:IndustrialPropertyMemberstpr:COacre:SeniorMortgageLoansMemberacre:LIBORPlus6Point75PercentDueFebruary2023Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377srt:IndustrialPropertyMemberacre:SOFRPlus8Point50PercentDueFebruary2023Memberstpr:COacre:SeniorMortgageLoansMember2022-03-310001529377us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembersrt:IndustrialPropertyMemberacre:SOFRPlus8Point50PercentDueFebruary2023Memberstpr:COacre:SeniorMortgageLoansMember2022-03-310001529377acre:ImpactofCOVID19Member2022-03-310001529377acre:LoansHeldforInvestmentMember2022-03-310001529377us-gaap:UnfundedLoanCommitmentMember2022-03-310001529377acre:LoansHeldforInvestmentMember2021-12-310001529377acre:LoansHeldforInvestmentMember2022-01-012022-03-310001529377us-gaap:UnfundedLoanCommitmentMember2021-12-310001529377us-gaap:UnfundedLoanCommitmentMember2022-01-012022-03-310001529377acre:LevelOneLowerRiskPerformingMemberacre:LoansHeldforInvestmentMember2022-03-310001529377acre:LoansHeldforInvestmentMemberacre:LevelTwoAverageRiskPerformingMember2022-03-310001529377acre:LoansHeldforInvestmentMemberacre:LevelThreeAcceptableRiskPerformingMember2022-03-310001529377acre:LevelFourHigherRiskAssetPerformanceisTrailingUnderwrittenExpectationsMemberacre:LoansHeldforInvestmentMember2022-03-310001529377acre:LoansHeldforInvestmentMemberacre:LevelFiveImpairedLossPossibleMember2022-03-310001529377acre:LoansHeldforInvestmentMember2022-03-310001529377us-gaap:OtherAssetsMember2022-03-310001529377us-gaap:OtherAssetsMember2021-12-310001529377stpr:NYacre:SeniorMortgageLoansMembersrt:HotelMember2019-03-070001529377stpr:NYacre:SeniorMortgageLoansMembersrt:HotelMember2019-03-080001529377stpr:NYacre:SeniorMortgageLoansMembersrt:HotelMember2021-11-082021-11-080001529377stpr:NYacre:SeniorMortgageLoansMembersrt:HotelMember2022-01-012022-03-310001529377acre:ThirdPartyBuyerOfTheHotelPropertyMemberstpr:NYacre:SeniorMortgageLoansMembersrt:HotelMember2022-01-012022-03-310001529377us-gaap:UnfundedLoanCommitmentMemberacre:ThirdPartyBuyerOfTheHotelPropertyMemberstpr:NYacre:SeniorMortgageLoansMembersrt:HotelMember2022-03-310001529377stpr:NYus-gaap:LandMembersrt:HotelMember2021-12-310001529377us-gaap:BuildingAndBuildingImprovementsMemberstpr:NYsrt:HotelMember2021-12-310001529377us-gaap:FurnitureAndFixturesMemberstpr:NYsrt:HotelMember2021-12-310001529377stpr:NYsrt:HotelMember2021-12-310001529377stpr:NYsrt:HotelMember2021-01-012021-03-310001529377acre:WellsFargoBankNationalAssociationMemberus-gaap:SecuredDebtMember2022-03-310001529377acre:WellsFargoBankNationalAssociationMemberus-gaap:SecuredDebtMember2021-12-310001529377acre:CitibankNAMemberus-gaap:SecuredDebtMember2022-03-310001529377acre:CitibankNAMemberus-gaap:SecuredDebtMember2021-12-310001529377acre:CityNationalBankMemberus-gaap:SecuredDebtMember2022-03-310001529377acre:CityNationalBankMemberus-gaap:SecuredDebtMember2021-12-310001529377acre:MetropolitanLifeInsuranceCompanyMemberus-gaap:SecuredDebtMember2022-03-310001529377acre:MetropolitanLifeInsuranceCompanyMemberus-gaap:SecuredDebtMember2021-12-310001529377acre:MorganStanleyFacilityMemberus-gaap:SecuredDebtMember2022-03-310001529377acre:MorganStanleyFacilityMemberus-gaap:SecuredDebtMember2021-12-310001529377us-gaap:SecuredDebtMember2022-03-310001529377us-gaap:SecuredDebtMember2021-12-310001529377us-gaap:NotesPayableToBanksMember2022-03-310001529377us-gaap:NotesPayableToBanksMember2021-12-310001529377acre:SecuredTermLoanMember2022-03-310001529377acre:SecuredTermLoanMember2021-12-310001529377acre:WellsFargoBankNationalAssociationMemberacre:RevolvingCreditFacilityOptionalCommitmentAmountMember2022-03-310001529377acre:WellsFargoBankNationalAssociationMemberus-gaap:RevolvingCreditFacilityMember2022-03-310001529377acre:WellsFargoBankNationalAssociationMemberacre:RevolvingCreditFacilityOptionalFundingPeriodMember2022-03-31acre:extension0001529377acre:WellsFargoBankNationalAssociationMemberacre:RevolvingCreditFacilityOptionalFundingPeriodMember2022-01-012022-03-310001529377acre:WellsFargoBankNationalAssociationMemberacre:RevolvingCreditFacilityOptionalCommitmentAmountMember2022-01-012022-03-310001529377acre:WellsFargoBankNationalAssociationMemberacre:DebtInstrumentVariableRateBaseLiborOrSOFR30DayMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2020-12-142020-12-140001529377acre:WellsFargoBankNationalAssociationMemberacre:DebtInstrumentVariableRateBaseLiborOrSOFR30DayMemberus-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2020-12-142020-12-140001529377acre:CitibankNAMemberus-gaap:RevolvingCreditFacilityMember2022-03-310001529377acre:CitibankNAMemberus-gaap:RevolvingCreditFacilityMember2022-01-012022-03-310001529377acre:DebtInstrumentVariableRateBaseLiborOrSOFR30DayMemberacre:CitibankNAMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2022-01-012022-03-310001529377acre:DebtInstrumentVariableRateBaseLiborOrSOFR30DayMemberacre:CitibankNAMemberus-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2022-01-012022-03-310001529377acre:CitibankNAMemberus-gaap:RevolvingCreditFacilityMember2021-01-012021-03-310001529377acre:CityNationalBankMemberacre:March2014CityNationalBankFacilityMember2022-03-310001529377acre:CityNationalBankMemberacre:RevolvingCreditFacilityOptionalFundingPeriodMember2022-01-012022-03-310001529377us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberacre:CityNationalBankMemberacre:March2014CityNationalBankFacilityMembersrt:MinimumMember2022-01-012022-03-310001529377us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberacre:CityNationalBankMemberacre:March2014CityNationalBankFacilityMembersrt:MaximumMember2022-01-012022-03-310001529377acre:CityNationalBankMemberacre:DebtInstrumentVariableRateBaseFederalFundsRateMemberacre:March2014CityNationalBankFacilityMember2022-01-012022-03-310001529377us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberacre:CityNationalBankMemberacre:March2014CityNationalBankFacilityMember2022-01-012022-03-310001529377acre:CityNationalBankMemberus-gaap:LondonInterbankOfferedRateLIBORMemberacre:March2014CityNationalBankFacilityMember2022-01-012022-03-310001529377acre:CityNationalBankMemberacre:DebtInstrumentVariableRateBaseLIBOROneMonthMemberacre:March2014CityNationalBankFacilityMember2022-01-012022-03-310001529377acre:CityNationalBankMemberacre:March2014CityNationalBankFacilityMember2022-01-012022-03-310001529377acre:CityNationalBankMemberacre:March2014CityNationalBankFacilityMember2021-01-012021-03-310001529377acre:MetropolitanLifeInsuranceCompanyMemberacre:RevolvingMasterRepurchaseFacilityMember2022-03-310001529377acre:MetropolitanLifeInsuranceCompanyMemberacre:RevolvingMasterRepurchaseFacilityMember2022-01-012022-03-310001529377acre:MetropolitanLifeInsuranceCompanyMemberacre:DebtInstrumentVariableRateBaseLiborOrSOFR30DayMemberacre:RevolvingMasterRepurchaseFacilityMember2022-01-012022-03-310001529377acre:MetropolitanLifeInsuranceCompanyMemberus-gaap:RevolvingCreditFacilityMember2022-01-012022-03-310001529377acre:MetropolitanLifeInsuranceCompanyMemberus-gaap:RevolvingCreditFacilityMember2022-03-310001529377acre:MetropolitanLifeInsuranceCompanyMemberacre:March2014CityNationalBankFacilityMember2022-01-012022-03-310001529377acre:MetropolitanLifeInsuranceCompanyMemberacre:March2014CityNationalBankFacilityMember2021-01-012021-03-310001529377acre:MorganStanleyFacilityMemberacre:RevolvingMasterRepurchaseFacilityMember2022-03-310001529377acre:MorganStanleyFacilityMemberacre:RevolvingMasterRepurchaseFacilityMember2022-01-012022-03-310001529377acre:MorganStanleyFacilityMemberacre:DebtInstrumentVariableRateBaseLiborOrSOFR30DayMemberacre:RevolvingMasterRepurchaseFacilityMembersrt:MinimumMember2022-01-012022-03-310001529377acre:MorganStanleyFacilityMemberacre:DebtInstrumentVariableRateBaseLiborOrSOFR30DayMemberacre:RevolvingMasterRepurchaseFacilityMember2022-01-012022-03-3100015293772019-11-302019-11-300001529377us-gaap:NotesPayableToBanksMember2019-11-300001529377us-gaap:NotesPayableToBanksMemberstpr:SC2019-11-300001529377acre:NotesPayableDueJune102024Memberus-gaap:NotesPayableToBanksMemberstpr:NY2022-03-310001529377acre:NotesPayableDueJune102024Memberus-gaap:NotesPayableToBanksMemberstpr:NY2022-01-012022-03-310001529377acre:NotesPayableDueJune102024Memberstpr:NY2022-01-012022-03-310001529377us-gaap:NotesPayableToBanksMember2019-11-302019-11-300001529377us-gaap:NotesPayableToBanksMember2022-03-310001529377acre:SecuredTermLoanMember2021-11-300001529377acre:SecuredTermLoanMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-11-012021-11-300001529377srt:ScenarioForecastMemberacre:SecuredTermLoanMember2025-05-122025-11-120001529377srt:ScenarioForecastMemberacre:SecuredTermLoanMember2025-11-132026-11-120001529377srt:ScenarioForecastMemberacre:SecuredTermLoanMember2025-05-122026-11-120001529377acre:SecuredTermLoanMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-10-310001529377acre:SecuredTermLoanMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-01-012022-03-310001529377srt:ScenarioForecastMemberacre:SecuredTermLoanMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-04-012022-06-300001529377srt:ScenarioForecastMemberacre:SecuredTermLoanMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-07-012022-09-300001529377stpr:NCus-gaap:NotesPayableToBanksMember2019-04-300001529377srt:MultifamilyMemberstpr:NCus-gaap:NotesPayableToBanksMember2019-04-300001529377stpr:NCacre:SeniorMortgageLoansMember2019-04-012019-04-300001529377srt:OfficeBuildingMemberacre:SeniorMortgageLoanDueMay52023Memberstpr:NC2019-04-012019-04-300001529377srt:OfficeBuildingMemberacre:SeniorMortgageLoanDueMay52023Memberstpr:NC2022-03-310001529377us-gaap:InterestRateSwapMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-31acre:derivative0001529377us-gaap:InterestRateSwapMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-03-310001529377us-gaap:InterestRateSwapMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001529377us-gaap:InterestRateSwapMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-12-310001529377us-gaap:InterestRateCapMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001529377us-gaap:InterestRateCapMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001529377us-gaap:InterestRateCapMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-12-310001529377us-gaap:InterestRateCapMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-03-310001529377us-gaap:InterestRateCapMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-01-012022-03-310001529377us-gaap:InterestRateContractMemberus-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001529377us-gaap:InterestRateContractMemberus-gaap:OtherAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001529377us-gaap:OtherLiabilitiesMemberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001529377us-gaap:OtherLiabilitiesMemberus-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001529377us-gaap:CommonStockMember2019-11-220001529377us-gaap:CommonStockMembersrt:MaximumMember2019-11-222019-11-220001529377us-gaap:CommonStockMember2022-01-012022-03-310001529377us-gaap:CommonStockMember2022-03-310001529377us-gaap:RestrictedStockMemberacre:AmendedandRestated2012EquityIncentivePlanMember2018-06-300001529377acre:RestrictedStockAndRestrictedStockUnitsMembersrt:MinimumMember2022-01-012022-03-310001529377acre:RestrictedStockAndRestrictedStockUnitsMembersrt:MaximumMember2022-01-012022-03-310001529377us-gaap:RestrictedStockMembersrt:DirectorMember2021-12-310001529377us-gaap:RestrictedStockMembersrt:OfficerMember2021-12-310001529377us-gaap:RestrictedStockUnitsRSUMembersrt:OfficerMember2021-12-310001529377us-gaap:RestrictedStockMembersrt:DirectorMember2022-01-012022-03-310001529377us-gaap:RestrictedStockMembersrt:OfficerMember2022-01-012022-03-310001529377us-gaap:RestrictedStockUnitsRSUMembersrt:OfficerMember2022-01-012022-03-310001529377us-gaap:RestrictedStockMembersrt:DirectorMember2022-03-310001529377us-gaap:RestrictedStockMembersrt:OfficerMember2022-03-310001529377us-gaap:RestrictedStockUnitsRSUMembersrt:OfficerMember2022-03-310001529377acre:ACRECapitalHoldingsLLCMember2022-01-012022-03-310001529377acre:ACRECapitalHoldingsLLCMember2021-01-012021-03-310001529377us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateContractMember2022-03-310001529377us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateContractMember2022-03-310001529377us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateContractMember2022-03-310001529377us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateContractMember2022-03-310001529377us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-03-310001529377us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001529377us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001529377us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001529377us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001529377us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001529377srt:AffiliatedEntityMember2022-01-012022-03-310001529377srt:AffiliatedEntityMember2022-03-31acre:quarter0001529377us-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMemberacre:ManagementFeesMember2022-01-012022-03-310001529377us-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMemberacre:ManagementFeesMember2021-01-012021-03-310001529377us-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMemberacre:ManagementFeesMember2022-03-310001529377us-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMemberacre:ManagementFeesMember2021-12-310001529377us-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMemberacre:IncentiveFeesMember2022-01-012022-03-310001529377us-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMemberacre:IncentiveFeesMember2021-01-012021-03-310001529377us-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMemberacre:IncentiveFeesMember2022-03-310001529377us-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMemberacre:IncentiveFeesMember2021-12-310001529377us-gaap:GeneralAndAdministrativeExpenseMemberus-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMember2022-01-012022-03-310001529377us-gaap:GeneralAndAdministrativeExpenseMemberus-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMember2021-01-012021-03-310001529377us-gaap:GeneralAndAdministrativeExpenseMemberus-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMember2022-03-310001529377us-gaap:GeneralAndAdministrativeExpenseMemberus-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMember2021-12-310001529377us-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMemberacre:DirectThirdPartyCostsMember2022-01-012022-03-310001529377us-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMemberacre:DirectThirdPartyCostsMember2021-01-012021-03-310001529377us-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMemberacre:DirectThirdPartyCostsMember2022-03-310001529377us-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMemberacre:DirectThirdPartyCostsMember2021-12-310001529377us-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMember2022-01-012022-03-310001529377us-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMember2021-01-012021-03-310001529377us-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMember2022-03-310001529377us-gaap:SegmentContinuingOperationsMembersrt:AffiliatedEntityMember2021-12-310001529377us-gaap:ResidentialRealEstateMember2022-03-310001529377us-gaap:ResidentialRealEstateMember2021-12-310001529377srt:IndustrialPropertyMemberus-gaap:LoanPurchaseCommitmentsMemberacre:SeniorMortgageLoansMember2022-03-3100015293772022-02-152022-02-1500015293772021-02-172021-02-170001529377us-gaap:NotesPayableToBanksMemberacre:WellsFargoBankNationalAssociationMemberacre:A2019FL3CLOSecuritizationMember2019-01-110001529377us-gaap:CollateralizedLoanObligationsMemberacre:WellsFargoBankNationalAssociationMemberacre:A2019FL3CLOSecuritizationMember2019-01-110001529377us-gaap:NotesPayableToBanksMemberacre:WellsFargoBankNationalAssociationMember2017-03-310001529377us-gaap:CollateralizedLoanObligationsMemberacre:WellsFargoBankNationalAssociationMember2017-03-310001529377acre:FloatingRateNotesWeightedAverageCouponRateLIBORPlus1point85PercentMember2022-01-012022-03-310001529377acre:FloatingRateNotesWeightedAverageCouponRateLIBORPlus1point85PercentMember2022-03-310001529377acre:FloatingRateNotesWeightedAverageCouponRateLIBORPlus1point85PercentMember2021-01-012021-03-310001529377acre:FloatingRateNotesWeightedAverageCouponRateLIBORPlus1point85PercentMember2021-12-310001529377acre:OfferedNotesMembersrt:SubsidiariesMember2022-03-310001529377srt:ParentCompanyMemberacre:OfferedCertificatesMember2022-03-310001529377acre:OfferedCertificatesAndOfferedNotesMembersrt:ParentCompanyMember2022-03-310001529377acre:SecuredFloatingRateNotesMemberacre:ACRECommercialMortgage2021FL4LtdAndACRECommercialMortgage2021FL4LLCMember2021-01-280001529377us-gaap:PreferredStockMemberacre:ACRECommercialMortgage2021FL4LtdAndACRECommercialMortgage2021FL4LLCMember2021-01-282021-01-280001529377acre:FL4MortgageAssetsMember2022-01-012022-03-310001529377acre:FL4MortgageAssetsMember2022-03-310001529377acre:FL4MortgageAssetsMember2021-01-012021-12-310001529377acre:FL4MortgageAssetsMember2021-12-310001529377acre:WhollyOwnedSubsidiaryToParentCompanyMemberacre:SecuredFloatingRateNotesMemberacre:ACRECommercialMortgage2021FL4LtdAndACRECommercialMortgage2021FL4LLCMember2022-03-310001529377us-gaap:PreferredStockMemberacre:WhollyOwnedSubsidiaryToParentCompanyMemberacre:ACRECommercialMortgage2021FL4LtdAndACRECommercialMortgage2021FL4LLCMember2022-01-012022-03-310001529377srt:OfficeBuildingMemberacre:SOFRPlus3Point75PercentMemberus-gaap:SubsequentEventMemberacre:SeniorMortgageLoansMemberstpr:MA2022-04-150001529377us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembersrt:OfficeBuildingMemberacre:SOFRPlus3Point75PercentMemberus-gaap:SubsequentEventMemberacre:SeniorMortgageLoansMemberstpr:MA2022-04-150001529377stpr:FLus-gaap:SubsequentEventMemberacre:LiborPlus2Point90PercentMemberacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-04-210001529377stpr:FLus-gaap:SubsequentEventMemberacre:LiborPlus2Point90PercentMemberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-04-210001529377acre:LiborPlus3Point05PercentMemberus-gaap:SubsequentEventMemberstpr:PAacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-04-210001529377acre:LiborPlus3Point05PercentMemberus-gaap:SubsequentEventMemberstpr:PAacre:SeniorMortgageLoansMemberacre:SelfStorageMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-04-210001529377us-gaap:SubsequentEventMemberacre:LiborPlus2Point90PercentMemberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MA2022-04-210001529377us-gaap:SubsequentEventMemberacre:LiborPlus2Point90PercentMemberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MAus-gaap:LondonInterbankOfferedRateLIBORMember2022-04-210001529377stpr:TXus-gaap:SubsequentEventMemberacre:LiborPlus2Point90PercentMemberacre:SeniorMortgageLoansMemberacre:SelfStorageMember2022-04-210001529377stpr:TXus-gaap:SubsequentEventMemberacre:LiborPlus2Point90PercentMemberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-04-210001529377us-gaap:SubsequentEventMemberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MAacre:LiborPlus2Point90PercentInstrument2Member2022-04-210001529377us-gaap:SubsequentEventMemberacre:SeniorMortgageLoansMemberacre:SelfStorageMemberstpr:MAacre:LiborPlus2Point90PercentInstrument2Memberus-gaap:LondonInterbankOfferedRateLIBORMember2022-04-210001529377us-gaap:SubsequentEventMember2022-05-03
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________________________________ 
FORM 10-Q
      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the quarterly period ended March 31, 2022
 OR
        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the transition period from _____ to _____

Commission File No. 001-35517
acre-20220331_g1.jpg
 ARES COMMERCIAL REAL ESTATE CORPORATION
(Exact name of Registrant as specified in its charter) 
Maryland 45-3148087
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
 
245 Park Avenue, 42nd Floor, New York, NY 10167
(Address of principal executive offices) (Zip Code)
 
(212750-7300
(Registrant’s telephone number, including area code)
 
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $0.01 par value per shareACRENew York Stock Exchange
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:   Yes ý  No o
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes ý  No o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one): 
Large accelerated filer  Accelerated filer
Non-accelerated filer  Smaller reporting company
Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No
 
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class Outstanding at May 2, 2022
Common stock, $0.01 par value 47,438,363
1


TABLE OF CONTENTS

Page
Part I. Financial Information
 
Item 1. Consolidated Financial Statements
 
 


1

FORWARD-LOOKING STATEMENTS

Some of the statements contained in this quarterly report 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, and we intend such statements to be covered by the safe harbor provisions contained therein. The information contained in this section should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this quarterly report on Form 10-Q. This description contains forward-looking statements that involve risks and uncertainties. Actual results could differ significantly from the results discussed in the forward-looking statements due to the factors set forth in “Risk Factors” and elsewhere in this quarterly report on Form 10-Q and in our annual report on Form 10-K for the fiscal year ended December 31, 2021. In addition, some of the statements in this quarterly report (including in the following discussion) constitute forward-looking statements, which relate to future events or the future performance or financial condition of Ares Commercial Real Estate Corporation (“ACRE” and, together with its consolidated subsidiaries, the “Company,” “we,” “us” and “our”). The forward-looking statements contained in this report involve a number of risks and uncertainties, including statements concerning:

our business and investment strategy;

our projected operating results;

the return or impact of current and future investments;

the severity and duration of the novel coronavirus (“COVID-19”) pandemic;

the impact of the COVID-19 pandemic, on our business and the United States and global economies;

the impact of the COVID-19 pandemic on the real estate industry and our borrowers, the performance of the properties securing our loans that may cause deterioration in the performance of our investments and, potentially, principal losses to us;

the impact of Russia’s invasion of Ukraine and the international community’s response have created, and may continue to create, substantial political and economic disruption, uncertainty and risk;

the length of the economic slowdown resulting from the COVID-19 pandemic as well as the rate and extent of economic recovery;

management’s current estimate of expected credit losses and current expected credit loss reserve;

the collectability and timing of cash flows, if any, from our investments;

estimates relating to our ability to make distributions to our stockholders in the future;

defaults by borrowers in paying amounts due on outstanding indebtedness and our ability to collect all amounts due according to the contractual terms of our investments;

our ability to obtain, maintain, repay or refinance financing arrangements, including securitizations;

market conditions and our ability to access alternative debt markets and additional debt and equity capital;

the amount of commercial mortgage loans requiring refinancing;

the demand for commercial real estate loans;

our expected investment capacity and available capital;

financing and advance rates for our target investments;

our expected leverage;

changes in interest rates, credit spreads and the market value of our investments;
2


the impact of the replacement of the London Interbank Offered Rate (“LIBOR”) on our operating results;

rates of default or decreased recovery rates on our target investments;

rates of prepayments on our mortgage loans and the effect on our business of such prepayments;

the degree to which our hedging strategies may or may not protect us from interest rate volatility;

availability of investment opportunities in mortgage-related and real estate-related investments and securities;

the ability of Ares Commercial Real Estate Management LLC (“ACREM” or our “Manager”) to locate suitable investments for us, monitor, service and administer our investments and execute our investment strategy;

allocation of investment opportunities to us by our Manager;

our ability to successfully identify, complete and integrate any acquisitions;

our ability to maintain our qualification as a real estate investment trust (“REIT”) for United States federal income tax purposes;

our ability to maintain our exemption from registration under the Investment Company Act of 1940 (the “1940 Act”);

our understanding of our competition;

general volatility of the securities markets in which we may invest;

adverse changes in the real estate, real estate capital and credit markets and the impact of a protracted decline in the liquidity of credit markets on our business;

changes in governmental regulations, tax law and rates, and similar matters (including interpretation thereof);

authoritative or policy changes from standard-setting bodies such as the Financial Accounting Standards Board, the Securities and Exchange Commission, the Internal Revenue Service, the stock exchange where we list our common stock, and other authorities that we are subject to, as well as their counterparts in any foreign jurisdictions where we might do business;

actions and initiatives of the United States government or governments outside of the United States, and changes to United States government policies;

the state of the United States, European Union and Asian economies generally or in specific geographic regions;

global economic trends and economic conditions; and

market trends in our industry, interest rates, real estate values, the debt securities markets or the general economy.

We use words such as “anticipates,” “believes,” “expects,” “intends,” “will,” “should,” “could,” “may” and similar expressions to identify forward-looking statements, although not all forward-looking statements include these words. Our actual results and financial condition could differ materially from those implied or expressed in the forward-looking statements for any reason, including the risks, uncertainties and other factors set forth in Part I, Item 1A. “Risk Factors” in our annual report on Form 10-K for the fiscal year ended December 31, 2021 (“2021 Annual Report”) and the other information included in our 2021 Annual Report and elsewhere in this quarterly report on Form 10-Q.

We have based the forward-looking statements included in this quarterly report on information available to us on the date of this quarterly report, and we assume no obligation to update any such forward-looking statements. Although we
3

undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the Securities and Exchange Commission (“SEC”), including annual reports on Form 10-K, registration statements on Form S-3, quarterly reports on Form 10-Q and current reports on Form 8-K.
4

PART I — FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements

ARES COMMERCIAL REAL ESTATE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

As of
March 31, 2022December 31, 2021
(unaudited)
ASSETS
Cash and cash equivalents$13,759 $50,615 
Loans held for investment ($1,028,398 and $974,424 related to consolidated VIEs, respectively)
2,421,772 2,414,383 
Current expected credit loss reserve(20,452)(23,939)
Loans held for investment, net of current expected credit loss reserve2,401,320 2,390,444 
Real estate owned held for sale, net 36,602 
Other assets ($2,267 and $2,592 of interest receivable related to consolidated VIEs, respectively; $74,615 and $128,589 of other receivables related to consolidated VIEs, respectively)
100,726 154,177 
Total assets$2,515,805 $2,631,838 
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Secured funding agreements$740,022 $840,047 
Notes payable22,631 50,358 
Secured term loan149,061 149,016 
Collateralized loan obligation securitization debt (consolidated VIEs)861,788 861,188 
Secured borrowings22,612 22,589 
Due to affiliate 3,823 4,156 
Dividends payable16,740 16,674 
Other liabilities ($689 and $570 of interest payable related to consolidated VIEs, respectively)
9,794 9,182 
Total liabilities1,826,471 1,953,210 
Commitments and contingencies (Note 9)
STOCKHOLDERS' EQUITY
Common stock, par value $0.01 per share, 450,000,000 shares authorized at March 31, 2022 and December 31, 2021 and 47,412,436 and 47,144,058 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively
467 465 
Additional paid-in capital707,579 703,950 
Accumulated other comprehensive income 10,458 2,844 
Accumulated earnings (deficit)(29,170)(28,631)
Total stockholders' equity689,334 678,628 
Total liabilities and stockholders' equity$2,515,805 $2,631,838 

   See accompanying notes to consolidated financial statements.
5

ARES COMMERCIAL REAL ESTATE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)

 For the three months ended March 31,
 20222021
(unaudited)(unaudited)
Revenue:
Interest income$33,364 $30,704 
Interest expense(12,013)(12,139)
Net interest margin21,351 18,565 
Revenue from real estate owned2,672 2,658 
Total revenue24,023 21,223 
Expenses:
Management and incentive fees to affiliate2,974 2,567 
Professional fees778 785 
General and administrative expenses1,613 1,157 
General and administrative expenses reimbursed to affiliate834 752 
Expenses from real estate owned4,309 3,277 
Total expenses10,508 8,538 
Provision for current expected credit losses(594)(3,240)
Gain on sale of real estate owned2,197  
Income before income taxes16,306 15,925 
Income tax expense, including excise tax105 185 
Net income attributable to common stockholders$16,201 $15,740 
Earnings per common share:
Basic earnings per common share$0.34 $0.46 
Diluted earnings per common share$0.34 $0.45 
Weighted average number of common shares outstanding:
Basic weighted average shares of common stock outstanding47,204,397 34,417,040 
Diluted weighted average shares of common stock outstanding47,654,549 34,720,950 
Dividends declared per share of common stock$0.35 $0.35 
    

   See accompanying notes to consolidated financial statements.
6

ARES COMMERCIAL REAL ESTATE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)

 For the three months ended March 31,
 20222021
(unaudited)(unaudited)
Net income attributable to common stockholders$16,201 $15,740 
Other comprehensive income:
Realized and unrealized gains on derivative financial instruments7,614 263 
Comprehensive income $23,815 $16,003 

   See accompanying notes to consolidated financial statements.
7

ARES COMMERCIAL REAL ESTATE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands, except share and per share data)
(unaudited)

 Common StockAdditional
Paid-in
Capital
Accumulated Other Comprehensive IncomeAccumulated
Earnings (Deficit)
Total Stockholders’ Equity
 SharesAmount
Balance at December 31, 202033,442,332 $329 $497,803 $ $(25,117)$473,015 
Sale of common stock7,000,000 70 100,800 — — 100,870 
Offering costs— — (188)— — (188)
Stock‑based compensation35,509 — 521 — — 521 
Other comprehensive income— — — 263 — 263 
Net income— — — — 15,740 15,740 
Dividends declared— — — — (14,248)(14,248)
Balance at March 31, 202140,477,841 $399 $598,936 $263 $(23,625)$575,973 
Sale of common stock6,500,000 65 101,725 — — 101,790 
Offering costs— — (164)— — (164)
Stock‑based compensation23,280 — 497 — — 497 
Other comprehensive income— — — (146)— (146)
Net income— — — — 17,615 17,615 
Dividends declared— — — — (16,528)(16,528)
Balance at June 30, 202147,001,121 $464 $700,994 $117 $(22,538)$679,037 
Offering costs— — (52)— — (52)
Stock‑based compensation700 — 428 — — 428 
Other comprehensive income— — — (98)— (98)
Net income— — — — 9,951 9,951 
Dividends declared— — — — (16,523)(16,523)
Balance at September 30, 202147,001,821 $464 $701,370 $19 $(29,110)$672,743 
Sale of common stock137,237 1 2,118 — — 2,119 
Offering costs— — (32)— — (32)
Stock‑based compensation5,000 — 494 — — 494 
Other comprehensive income— — — 2,825 — 2,825 
Net income — — — — 17,154 17,154 
Dividends declared— — — — (16,675)(16,675)
Balance at December 31, 202147,144,058 465 703,950 2,844 (28,631)678,628 
Sale of common stock190,369 2 2,872 — — 2,874 
Offering costs— — (9)— — (9)
Stock‑based compensation78,009 — 766 — — 766 
Other comprehensive income— — — 7,614 — 7,614 
Net income— — — — 16,201 16,201 
Dividends declared— — — — (16,740)(16,740)
Balance at March 31, 202247,412,436 $467 $707,579 $10,458 $(29,170)$689,334 
   
See accompanying notes to consolidated financial statements.
8

ARES COMMERCIAL REAL ESTATE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 For the three months ended March 31,
 20222021
(unaudited)(unaudited)
Operating activities:
Net income$16,201 $15,740 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of deferred financing costs 2,220 2,232 
Accretion of deferred loan origination fees and costs (2,280)(2,022)
Stock-based compensation 766 521 
Depreciation of real estate owned 224 
Provision for current expected credit losses(594)(3,240)
Gain on sale of real estate owned(2,197) 
Changes in operating assets and liabilities:
Other assets 3,956 (2,677)
Due to affiliate (333)169 
Other liabilities(1,524)(1,023)
Net cash provided by (used in) operating activities 16,215 9,924 
Investing activities:
Issuance of and fundings on loans held for investment (217,549)(219,205)
Principal repayment of loans held for investment266,574 87,321 
Receipt of origination fees2,428 680 
Proceeds from sale of real estate owned38,227  
Payments under derivative financial instruments (150)
Net cash provided by (used in) investing activities 89,680 (131,354)
Financing activities:
Proceeds from secured funding agreements37,892 77,253 
Repayments of secured funding agreements(137,917)(483,223)
Proceeds from notes payable 6,206 
Repayments of notes payable(28,275)(27,880)
Repayments of secured term loan (50,000)
Payment of secured funding costs(651)(7,962)
Proceeds from issuance of debt of consolidated VIEs 540,471 
Dividends paid(16,674)(11,124)
Proceeds from sale of common stock2,874 100,870 
Payment of offering costs (13)
Net cash provided by (used in) financing activities (142,751)144,598 
Change in cash and cash equivalents(36,856)23,168 
Cash and cash equivalents, beginning of period50,615 74,776 
Cash and cash equivalents, end of period$13,759 $97,944 

See accompanying notes to consolidated financial statements.
9

ARES COMMERCIAL REAL ESTATE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As of March 31, 2022
(in thousands, except share and per share data, percentages and as otherwise indicated)
(unaudited)

1.   ORGANIZATION

Ares Commercial Real Estate Corporation (together with its consolidated subsidiaries, the “Company” or “ACRE”) is a specialty finance company primarily engaged in originating and investing in commercial real estate loans and related investments. Through Ares Commercial Real Estate Management LLC (“ACREM” or the Company’s “Manager”), a Securities and Exchange Commission (“SEC”) registered investment adviser and a subsidiary of Ares Management Corporation (NYSE: ARES) (“Ares Management” or “Ares”), a publicly traded, leading global alternative investment manager, it has investment professionals strategically located across the United States and Europe who directly source new loan opportunities for the Company with owners, operators and sponsors of commercial real estate (“CRE”) properties. The Company was formed and commenced operations in late 2011. The Company is a Maryland corporation and completed its initial public offering (the “IPO”) in May 2012. The Company is externally managed by its Manager, pursuant to the terms of a management agreement (the “Management Agreement”).
 
The Company operates as one operating segment and is primarily focused on directly originating and managing a diversified portfolio of CRE debt-related investments for the Company’s own account. The Company’s target investments include senior mortgage loans, subordinated debt, preferred equity, mezzanine loans and other CRE investments, including commercial mortgage backed securities. These investments are generally held for investment and are secured, directly or indirectly, by office, multifamily, retail, industrial, lodging, self storage, student housing, residential, senior-living and other commercial real estate properties, or by ownership interests therein.

    The Company has elected and qualified to be taxed as a real estate investment trust (“REIT”) for United States federal income tax purposes under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2012. The Company generally will not be subject to United States federal income taxes on its REIT taxable income as long as it annually distributes all of its REIT taxable income prior to the deduction for dividends paid to stockholders and complies with various other requirements as a REIT.

2.   SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and the related management's discussion and analysis of financial condition and results of operations included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC.

Refer to the Company’s Annual Report on Form 10-K for a description of the Company’s recurring accounting policies. The Company has included disclosure below regarding basis of presentation and other accounting policies that (i) are required to be disclosed quarterly or (ii) the Company views as critical as of the date of this report.    

Basis of Presentation

The accompanying unaudited consolidated interim financial statements have been prepared on the accrual basis of accounting in conformity with United States generally accepted accounting principles (“GAAP”) and include the accounts of the Company, the consolidated variable interest entities (“VIEs”) that the Company controls and of which the Company is the primary beneficiary, and the Company’s wholly-owned subsidiaries. The unaudited consolidated interim financial statements reflect all adjustments and reclassifications that, in the opinion of management, are necessary for the fair presentation of the Company’s results of operations and financial condition as of and for the periods presented. All intercompany balances and transactions have been eliminated.

The unaudited consolidated interim financial statements are prepared in accordance with GAAP and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. The current period’s results of operations will not necessarily be indicative of results for any other interim period or that ultimately may be achieved for the year ending December 31, 2022.

10

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. The novel coronavirus (“COVID-19”) pandemic continues to disrupt global supply chains, has caused labor shortages and has added broad inflationary pressures, which have the potential to negatively impact the Company and its borrowers. While many countries, as well as certain local and state governments in the United States, have recently relaxed public health restrictions, recurring COVID-19 outbreaks, including outbreaks caused by different virus variants, may lead to the re-introduction of certain restrictions by certain local or state governments in the United States and globally. Even after the COVID-19 pandemic subsides, disruptions caused by the pandemic and the related supply chain challenges, labor shortages and inflationary pressures may continue and could, in turn, cause the United States economy or other global economies to experience a recession. We anticipate our business and operations could be materially adversely affected by a prolonged recession in the United States or other major global economy.

The Company believes the estimates and assumptions underlying its consolidated financial statements are reasonable and supportable based on the information available as of March 31, 2022, however, uncertainty over the ultimate impact the COVID-19 pandemic will have on the global economy and the Company’s business, makes any estimates and assumptions as of March 31, 2022 inherently less certain than they would be absent the current and potential impacts of the COVID-19 pandemic. Actual results could differ from those estimates.

Variable Interest Entities

The Company evaluates all of its interests in VIEs for consolidation. When the Company’s interests are determined to be variable interests, the Company assesses whether it is deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation, defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. The Company considers its variable interests, as well as any variable interests of its related parties in making this determination. Where both of these factors are present, the Company is deemed to be the primary beneficiary and it consolidates the VIE. Where either one of these factors is not present, the Company is not the primary beneficiary and it does not consolidate the VIE.
 
To assess whether the Company has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, the Company considers all facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes first, identifying the activities that most significantly impact the VIE’s economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE or have the right to unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE.

To assess whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers all of its economic interests, including debt and equity investments, servicing fees, and other arrangements deemed to be variable interests in the VIE. This assessment requires that the Company applies judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by the Company.

For VIEs of which the Company is determined to be the primary beneficiary, all of the underlying assets, liabilities, equity, revenue and expenses of the structures are consolidated into the Company’s consolidated financial statements.

The Company performs an ongoing reassessment of: (1) whether any entities previously evaluated under the majority voting interest framework have become VIEs, based on certain events, and therefore are subject to the VIE consolidation framework, and (2) whether changes in the facts and circumstances regarding its involvement with a VIE cause the Company’s consolidation conclusion regarding the VIE to change. See Note 16 included in these consolidated financial statements for further discussion of the Company’s VIEs.

11

Cash and Cash Equivalents

Cash and cash equivalents include funds on deposit with financial institutions, including demand deposits with financial institutions. Cash and short‑term investments with an original maturity of three months or less when acquired are considered cash and cash equivalents for the purpose of the consolidated balance sheets and statements of cash flows.

Loans Held for Investment

    The Company originates CRE debt and related instruments generally to be held for investment. Loans that are held for investment are carried at cost, net of unamortized loan fees and origination costs (the “carrying value”). Loans are generally collateralized by real estate. The extent of any credit deterioration associated with the performance and/or value of the underlying collateral property and the financial and operating capability of the borrower could impact the expected amounts received. The Company monitors performance of its loans held for investment portfolio under the following methodology: (1) borrower review, which analyzes the borrower’s ability to execute on its original business plan, reviews its financial condition, assesses pending litigation and considers its general level of responsiveness and cooperation; (2) economic review, which considers underlying collateral (i.e. leasing performance, unit sales and cash flow of the collateral and its ability to cover debt service, as well as the residual loan balance at maturity); (3) property review, which considers current environmental risks, changes in insurance costs or coverage, current site visibility, capital expenditures and market perception; and (4) market review, which analyzes the collateral from a supply and demand perspective of similar property types, as well as from a capital markets perspective. Such analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, and the borrower’s exit plan, among other factors.

    Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed against interest income in the period the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding the borrower’s ability to make pending principal and interest payments. Non-accrual loans are restored to accrual status when past due principal and interest are paid and, in management’s judgment, are likely to remain current. The Company may make exceptions to placing a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection.

    Loan balances that are deemed to be uncollectible are written off as a realized loss and are deducted from the current expected credit loss reserve. The write-offs are recorded in the period in which the loan balance is deemed uncollectible based on management’s judgment.

Current Expected Credit Losses

Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, requires the Company to reflect current expected credit losses (“CECL”) on both the outstanding balances and unfunded commitments on loans held for investment and requires consideration of a broad range of historical experience adjusted for current conditions and reasonable and supportable forecast information to inform credit loss estimates (the “CECL Reserve”). ASU No. 2016-13 was effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period. ASU No. 2016-13 was adopted by the Company on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of January 1, 2020. Subsequent period increases and decreases to expected credit losses impact earnings and are recorded within provision for current expected credit losses in the Company’s consolidated statements of operations. The CECL Reserve related to outstanding balances on loans held for investment required under ASU No. 2016-13 is a valuation account that is deducted from the amortized cost basis of the Company’s loans held for investment in the Company’s consolidated balance sheets. The CECL Reserve related to unfunded commitments on loans held for investment is recorded within other liabilities in the Company's consolidated balance sheets. See Note 4 included in these consolidated financial statements for CECL related disclosures.

Real Estate Owned

    Real estate assets are carried at their estimated fair value at acquisition and are presented net of accumulated depreciation and impairment charges. The Company allocates the purchase price of acquired real estate assets based on the fair value of the acquired land, building, furniture, fixtures and equipment.

    Real estate assets are depreciated using the straight-line method over estimated useful lives of up to 40 years for buildings and improvements and up to 15 years for furniture, fixtures and equipment. Renovations and/or replacements that
12

improve or extend the life of the real estate asset are capitalized and depreciated over their estimated useful lives. The cost of ordinary repairs and maintenance are expensed as incurred.

    Real estate assets are evaluated for indicators of impairment on a quarterly basis. Factors that the Company may consider in its impairment analysis include, among others: (1) significant underperformance relative to historical or anticipated operating results; (2) significant negative industry or economic trends; (3) costs necessary to extend the life or improve the real estate asset; (4) significant increase in competition; and (5) ability to hold and dispose of the real estate asset in the ordinary course of business. A real estate asset is considered impaired when the sum of estimated future undiscounted cash flows expected to be generated by the real estate asset over the estimated remaining holding period is less than the carrying amount of such real estate asset. Cash flows include operating cash flows and anticipated capital proceeds generated by the real estate asset. An impairment charge is recorded equal to the excess of the carrying value of the real estate asset over the fair value. When determining the fair value of a real estate asset, the Company makes certain assumptions including, but not limited to, consideration of projected operating cash flows, comparable selling prices and projected cash flows from the eventual disposition of the real estate asset based upon the Company’s estimate of a capitalization rate and discount rate.

    The Company reviews its real estate assets, from time to time, in order to determine whether to sell such assets. Real estate assets are classified as held for sale when the Company commits to a plan to sell the asset, when the asset is being actively marketed for sale at a reasonable price and the sale of the asset is probable and the transfer of the asset is expected to qualify for recognition as a completed sale within one year. Real estate assets that are held for sale are carried at the lower of the asset’s carrying amount or its fair value less costs to sell.

Debt Issuance Costs

Debt issuance costs under the Company’s indebtedness are capitalized and amortized over the term of the respective debt instrument. Unamortized debt issuance costs are expensed when the associated debt is repaid prior to maturity. Debt issuance costs related to debt securitizations are capitalized and amortized over the term of the underlying loans using the effective interest method. When an underlying loan is prepaid in a debt securitization and the outstanding principal balance of the securitization debt is reduced, the related unamortized debt issuance costs are charged to expense based on a pro‑rata share of the debt issuance costs being allocated to the specific loans that were prepaid. Amortization of debt issuance costs is included within interest expense, except as noted below, in the Company’s consolidated statements of operations while the unamortized balance on the (i) Secured Funding Agreements (each individually defined in Note 6 included in these consolidated financial statements) is included within other assets and (ii) Notes Payable, the Secured Term Loan (each defined in Note 6 included in these consolidated financial statements) and Secured Borrowings (defined in Note 7 included in these consolidated financial statements) and debt securitizations are each included as a reduction to the carrying amount of the liability, in the Company’s consolidated balance sheets. Amortization of debt issuance costs for the note payable on the hotel property that is recognized as real estate owned in the Company’s consolidated balance sheets (see Note 6 included in these consolidated financial statements for additional information on the note payable) is included within expenses from real estate owned in the Company’s consolidated statements of operations.

Derivative Financial Instruments

Derivative financial instruments are classified as either other assets (gain positions) or other liabilities (loss positions) in the Company’s consolidated balance sheets at fair value. These amounts may be offset to the extent that there is a legal right to offset and if elected by management.

On the date the Company enters into a derivative contract, the Company designates each contract as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability, or cash flow hedge, or as a derivative instrument not to be designated as a hedging derivative, or non-designated hedge. For all derivatives other than those designated as non-designated hedges, the Company formally documents the hedge relationships and designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and an evaluation of the effectiveness of its hedged transaction.

The Company performs a formal assessment on a quarterly basis on whether the derivative designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. Changes in the fair value of derivative contracts are recorded each period in either current earnings or other comprehensive income (“OCI”), depending on whether the derivative is designated as part of a hedge transaction and, if so, the type of hedge transaction. For derivatives that are designated as cash flow hedges, the effective portion of the unrealized gains or losses on these contracts is recorded in OCI. If it is determined that a derivative is not highly effective at hedging the
13

designated exposure, hedge accounting is discontinued and the changes in fair value of the instrument are included in current earnings prospectively. The Company does not enter into derivatives for trading or speculative purposes.

Revenue Recognition

    Interest income is accrued based on the outstanding principal amount and the contractual terms of each loan. For loans held for investment, the origination fees, contractual exit fees and direct loan origination costs are also recognized in interest income over the initial loan term as a yield adjustment using the effective interest method.

    Revenue from real estate owned represents revenue associated with the operations of a hotel property classified as real estate owned. Revenue from the operation of the hotel property is recognized when guestrooms are occupied, services have been rendered or fees have been earned. Revenues are recorded net of any discounts and sales and other taxes collected from customers. Revenues consist of room sales, food and beverage sales and other hotel revenues.

Net Interest Margin and Interest Expense
    Net interest margin in the Company’s consolidated statements of operations serves to measure the performance of the Company’s loans as compared to its use of debt leverage. The Company includes interest income from its loans and interest expense related to its Secured Funding Agreements, Notes Payable, securitization debt, the Secured Term Loan (each individually defined in Note 6 included in these consolidated financial statements) and Secured Borrowings (defined in Note 7 included in these consolidated financial statements) in net interest margin. For the three months ended March 31, 2022 and 2021, interest expense is comprised of the following ($ in thousands):
For the three months ended March 31,
 20222021
Secured funding agreements $5,127 $3,824 
Notes payable (1)453 1,194 
Securitization debt4,351 4,307 
Secured term loan1,732 1,341 
Secured borrowings292 1,431 
Other (2)58 42 
Interest expense$12,013 $12,139 
____________________________
(1)    Excludes interest expense on the $28.3 million note payable, which is secured by a hotel property that is recognized as real estate owned in the Company’s consolidated balance sheets (see Note 6 included in these consolidated financial statements for additional information on the note payable). Interest expense on the $28.3 million note payable is included within expenses from real estate owned in the Company’s consolidated statements of operations.
(2)    Represents the net interest expense recognized from the Company’s derivative financial instruments upon periodic settlement.
Comprehensive Income

Comprehensive income consists of net income and OCI that are excluded from net income.

Recent Accounting Pronouncements

    In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848), to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. ASU No. 2020-04 and ASU No. 2021-01 are effective for all entities and may be adopted retrospectively as of any date from the beginning of any
14

interim period that includes or is subsequent to March 12, 2020 or prospectively to new modifications through December 31, 2022. The Company is currently evaluating the impact of adopting these ASUs on its consolidated financial statements.

In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting guidance on troubled debt restructurings (“TDRs”) for creditors in ASC 310-40 and amends the guidance on “vintage disclosures” to require disclosure of current period gross write-offs by year of origination. The ASU also updates the requirements related to accounting for credit losses under Topic 326 and adds enhanced disclosures for creditors with respect to loan refinancing and restructurings for borrowers experiencing financial difficulty. ASU 2022-02 supersedes the accounting guidance for TDRs for creditors in its entirety and requires entities to evaluate all receivable modifications to determine whether a modification made to a borrower results in a new loan or a continuation of the existing loan. The Company elected to adopt the ASU for modifications occurring prospectively beginning in the first quarter of 2022.

3.   LOANS HELD FOR INVESTMENT

As of March 31, 2022, the Company’s portfolio included 77 loans held for investment, excluding 121 loans that were repaid, sold or converted to real estate owned since inception. The aggregate originated commitment under these loans at closing was approximately $2.8 billion and outstanding principal was $2.4 billion as of March 31, 2022. During the three months ended March 31, 2022, the Company funded approximately $222.9 million of outstanding principal and received repayments of $212.6 million of outstanding principal as described in more detail in the tables below. As of March 31, 2022, 91.6% of the Company’s loans have LIBOR or Secured Overnight Financing Rate (“SOFR”) floors, with a weighted average floor of 0.98%, calculated based on loans with LIBOR or SOFR floors. References to LIBOR or “L” are to 30-day LIBOR and references to SOFR or “S” are to 30-day SOFR (unless otherwise specifically stated).
 
The Company’s investments in loans held for investment are accounted for at amortized cost. The following tables summarize the Company’s loans held for investment as of March 31, 2022 and December 31, 2021 ($ in thousands):

 As of March 31, 2022
Carrying Amount (1)Outstanding Principal (1)Weighted Average Unleveraged Effective YieldWeighted Average Remaining Life (Years)
Senior mortgage loans $2,405,013 $2,421,979 5.4 %(2)5.5 %(3)1.5
Subordinated debt and preferred equity investments16,759 17,394 13.7 %(2)13.7 %(3)3.8
Total loans held for investment portfolio $2,421,772 $2,439,373 5.5 %(2)5.6 %(3)1.6

 As of December 31, 2021
Carrying Amount (1)Outstanding Principal (1)Weighted Average Unleveraged Effective YieldWeighted Average Remaining Life (Years)
Senior mortgage loans $2,397,655 $2,411,718 5.3 %(2)5.4 %(3)1.5
Subordinated debt and preferred equity investments16,728 17,394 13.7 %(2)13.7 %(3)4.0
Total loans held for investment portfolio$2,414,383 $2,429,112 5.4 %(2)5.5 %(3)1.6
______________________________

(1)The difference between the Carrying Amount and the Outstanding Principal amount of the loans held for investment consists of unamortized purchase discount, deferred loan fees and loan origination costs.
(2)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. The total Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all loans held by the Company as of March 31, 2022 and December 31, 2021 as weighted by the outstanding principal balance of each loan.
(3)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. The total Weighted Average Unleveraged Effective Yield
15

is calculated based on the average of Unleveraged Effective Yield of all interest accruing loans held by the Company as of March 31, 2022 and December 31, 2021 as weighted by the total outstanding principal balance of each interest accruing loan (excludes loans on non-accrual status as of March 31, 2022 and December 31, 2021).

A more detailed listing of the Company’s loans held for investment portfolio based on information available as of March 31, 2022 is as follows ($ in millions, except percentages):
Loan TypeLocationOutstanding Principal (1)Carrying Amount (1)Interest RateUnleveraged Effective Yield (2)Maturity Date (3)Payment Terms (4)
Senior Mortgage Loans:
OfficeIL$150.5$150.0L+3.61%5.5%Mar 2023I/O
OfficeDiversified114.4114.3L+3.65%5.7%Jan 2023I/O
IndustrialIL86.585.9L+4.55%5.4%May 2024I/O
Mixed-useFL84.084.0L+4.25%5.7%Feb 2023I/O
OfficeAZ77.476.6L+3.50%4.3%Oct 2024I/O
Mixed-useNY75.074.4L+3.65%4.5%Jul 2024I/O
OfficeNC69.569.3L+4.25%7.0%