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Ares Commercial Real Estate CorporationApril 2018Confidential – Not for Publication or Distribution

DisclaimerStatements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities ExchangeAct of 1934, as amended, which may relate to future events or the future performance or financial condition of Ares Commercial Real Estate Management LLC (“ACREM”), a subsidiary of AresManagement, L.P. (“Ares LP”), Ares LP, certain of their subsidiaries and certain funds and accounts managed by ACREM, Ares LP and/or their subsidiaries, including, without limitation, AresCommercial Real Estate Corporation (“ACRE”). These statements are not guarantees of future results or financial condition and involve a number of risks and uncertainties. Actual results coulddiffer materially from those in the forward-looking statements as a result of a number of factors, including the returns on current and future investments, rates of repayments and prepaymentson ACRE’s mortgage loans, availability of investment opportunities, ACRE’s ability to originate additional investments and completion of pending investments, the availability of capital, theavailability of cost financing, market trends and conditions in ACRE’s industry and the general economy, the level of lending and borrowing spreads, commercial real estate loan volumes,government-sponsored enterprise activity and other risks described from time to time in ACRE’s and ARES LP’s filings within the Securities and Exchange Commission (“SEC”). Any forwardlooking statement, including any contained herein, speaks only as of the time of this release and none of ACRE, ARES LP nor ACREM undertakes any duty to update any forward-lookingstatements made herein. Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws.Ares LP is the parent to several registered investment advisers, including Ares Management LLC (“Ares Management”) and ACREM. Collectively, Ares LP, its affiliated entities, and all underlyingsubsidiary entities shall be referred to as “Ares” unless specifically noted otherwise.The information contained in this presentation is summary information that is intended to be considered in the context of ACRE’s SEC filings and other public announcements that ACRE, ACREMor Ares may make, by press release or otherwise, from time to time. ACRE, ACREM and Ares undertake no duty or obligation to publicly update or revise the forward-looking statements orother information contained in this presentation. These materials contain information about ACRE, ACREM and Ares, and certain of their respective personnel and affiliates, information abouttheir respective historical performance and general information about the market. You should not view information related to the past performance of ACRE, ACREM or Ares or informationabout the market, as indicative of future results, the achievement of which cannot be assured.Nothing in these materials should be construed as a recommendation to invest in any securities that may be issued by ACRE or any other fund or account managed by ACREM or Ares, or aslegal, accounting or tax advice. None of ACRE, ACREM, Ares or any affiliate of ACRE, ACREM or Ares makes any representation or warranty, express or implied, as to the accuracy orcompleteness of the information contained herein and nothing contained herein shall be relied upon as a promise or representation whether as to the past or future performance. Certaininformation set forth herein includes estimates and projections and involves significant elements of subjective judgment and analysis. Further, such information, unless otherwise stated, isbefore giving effect to management and incentive fees and deductions for taxes. No representations are made as to the accuracy of such estimates or projections or that all assumptionsrelating to such estimates or projections have been considered or stated or that such estimates or projections will be realized.In addition, in light of the various investment strategies of such other investment partnerships, funds and/or pools, it is noted that such other investment programs may have portfolioinvestments inconsistent with those of the investment vehicle or strategy discussed herein.These materials may contain confidential and proprietary information, and their distribution or the divulgence of any of their contents to any person, other than the person to whom they wereoriginally delivered and such person’s advisers, without the prior consent of ACRE, ACREM or Ares, as applicable, is prohibited. You are advised that United States securities laws restrict anyperson who has material, non-public information about a company from purchasing or selling securities of such company (and options, warrants and rights relating thereto) and fromcommunicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities. You agree not topurchase or sell such securities in violation of any such laws.These materials are not intended as an offer to sell, or the solicitation of an offer to purchase, any security, the offer and/or sale of which can only be made by definitive offeringdocumentation. Any offer or solicitation with respect to any securities that may be issued by ACRE will be made only by means of definitive offering memoranda or prospectus, which will beprovided to prospective investors and will contain material information that is not set forth herein, including risk factors relating to any such investment.This may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor’s. Such information has not been independently verified and,accordingly, ACRE makes no representation or warranty in respect of this information. Reproduction and distribution of third party content in any form is prohibited except with the priorwritten permission of the related third party. Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and arenot responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. THIRD PARTY CONTENT PROVIDERS GIVENO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THIRD PARTY CONTENTPROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES, ORLOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS. Creditratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability ofsecurities for investment purposes, and should not be relied on as investment advice.REF: RE-00097Confidential – Not for Publication or Distribution2

Ares Commercial Real Estate CorporationReal Estate InvestmentTrust with Broad Product &Extensive Credit CapabilitiesInvest in Value-Add, Floating RateCommercial Mortgage LoansStrong Balance Sheet withDiverse Sources ofMatch FundingSelf-Originate Loans Through SixLocal Offices Across the U.S.Key Investment HighlightsAttractive DividendDerived FromPortfolio Net InterestIncomeDividend yield of 9%(1)Experienced TeamWith Strong TrackRecord 4.0 billion committed andno losses since inception in2012(2)Diversified Portfolio(3) 1.7 billion portfolioinvested across diverseproperties in primary andsecondary liquid marketsPositioned To BenefitFrom Rising InterestRates(4) 0.13 per share additionalannual earnings per 100bps rise in LIBORConsistent Growth inDividendsAnnual dividend coveragefrom Core Earnings for thelast 3 yearsACRE is Strengthened by its Sponsorship From Ares Management and the Ares Real Estate PlatformExtensive Sourcing CapabilitiesInformational AdvantagesStrong Access to AccretiveSources of CapitalBroad Product ExpertiseProven Credit and AssetManagement CapabilitiesOwnership/Strong SponsorshipData as of December 31, 2017 unless otherwise indicated.1.There is no assurance that dividends will continue at these levels or at all. Represents closing price as of April 2, 2018 and based on annualized Q1-2018 dividend.2.Past performance is not indicative of future results.3.Diversification does not assure profit or protect against market loss.4.The increase in annual net interest earnings is calculated assuming loans held for investment and corresponding liabilities do not change over the course of the quarterlyperiod and an increase of 100 basis points in 30 day Libor occurs on the first day of the quarterly period.Confidential – Not for Publication or Distribution3

Overview of Ares ManagementAres Management, L.P. is a leading global alternative asset manager with three distinct butcomplementary investment groupsAs of December 31st, 2017Founded:1997AUM(1): 106bnEmployees:1,000 Investment Professionals: 400Global Offices:Listing: NYSE –15 Market Capitalization(2) 4.5bnAssets UnderManagement 71.7 billion 24.5 billion 10.2 billionStrategiesHigh Yield BondsSyndicated LoansStructured CreditDirect LendingCorporate Private EquityU.S. Power & Energy InfrastructureSpecial SituationsReal Estate Private EquityReal Estate DebtGross Annualized Returns Since Inception except Europeand U.S. Direct Lending Asset Level Realized Gross IRRs ITDGross AnnualizedIRR Since InceptionGross Asset Level IRRsSince %High YieldBonds17%14%10%Europe DirectLendingNet AnnualReturn On Equityfor ACRE sinceIPO13%Gross IRRs Based on Actualand Projected Cash Flows15%15%U.S. EquityEurope Equity7%U.S. DirectLendingStructuredCreditACOF I-IV AggregateEIF AggregateSpecial SituationsDebtNET PERFORMANCE RETURNS. Credit: 5% for U.S. Syndicated Loan funds, 7% for U.S. High Yield funds, and 13% for Structured Credit. Private Equity: 17% for ACOF I-IV Aggregate, 9% for EIF Aggregate and8% for Special Situations. Real Estate: 10% for U.S. Equity, 7% for U.S. Debt and 8% for Europe Equity1. As of December 31, 2017, AUM amounts include funds managed by Ivy Hill Asset Management, L.P., a wholly owned portfolio company of Ares Capital Corporationand a registered investment adviser.2. Market Capitalization as of 3/28/2018; calculated using 20.77 share price and 217,835,221 common shares outstanding as of March 8, 2018(assumingexchange–ofall outstandingAresorOperatingGroup units for common shares).ConfidentialNotfor PublicationDistribution4Please refer to the Performance Notes at the end of this presentation for additional definitions, information and notes

Ares Real Estate GroupWe have 10.2 billion(1) of assets under management and have invested over 15 billion of equity in700 deals since 1993 Extensive U.S. and European footprint combines a broad view of opportunities with deep local networks, leading to off-market deal flow Led by a global senior team of highly tenured and cycle-tested real estate professionals with access to real-time market and corporate trends Demonstrated performance in both public and private investment vehicles, delivering attractive risk-adjusted returns across property typesand geographiesAdvantagesProprietaryRelationshipDeal FlowCycle-TestedResultsAccoladesAccess to Real-TimeMarket andCorporate TrendsInvestment track records of 15 years in both U.S. and European realestate private equityTop 15 Real EstateManager Based on2012-17 Equity Raised (3)Leading Platform of Real Estate Strategies (2)REAL ESTATE PRIVATE EQUITYREAL ESTATE DEBTU.S.EuropeU.S. 4.6 billion 2.7 billion 2.9 billionRepositioning, Lease-up, Redevelopment,Development, DistressRepositioning, Lease-up, Redevelopment,Development, DistressSenior DebtMezzanine Debt65 investments43 investments64 investmentsMultifamily, Industrial, Hospitality,Office and RetailRetail, Office, Industrial and ResidentialMultifamily, Office, Student Housing, Self Storage,Industrial, Hospitality, Retailand Healthcare1. AUM amounts are as of December 31, 2017. Ares Real Estate Group’s history described herein includes the history of AREA Property Partners (“AREA”) and its key principals prior to the Ares acquisitionof AREA in July 2013.2. As of December 31, 2017.3. Please refer to the Performance Notes at the end of this presentation for additional definitions, information and notes.Confidential – Not for Publication or Distribution5

Ares Management Sponsorship Provides Significant AdvantagesAres sponsorship provides informational advantages, deep servicing capabilities and other resources Ares Sponsorship 9%of ACRE’s stock owned byManagement/Board as well as ownersand affiliates of Ares Diligence & InformationalAdvantagesInvested over 15billion of equity in700 deals since 1993Deep Sourcing Capabilities450 financial sponsor relationshipsacross the firm with 90 dedicated toreal estateOwner, investor, or lender to over: (1)Over 312,000Facilitate relationships/access towarehouse lines, securitization sourcesand sources of leveragable capitalmultifamily unitsComplementary pools of capitalexpanding ACRE’s market presence 170 million sq. feetoffice, industrial, mixed use & retailCan provide significant cost savingson transaction executions38,600keys of hotel properties70real estate debt and equityprofessionalsLarge in-house research teamcovering 60 industriesData as of December 31, 2017, unless otherwise noted.1. As of December 31, 2017. Ares Management LLC acquired AREA Property Partners (“AREA”) on July 1, 2013. Information pertaining to historical activities of the Ares Real Estate Group includesactivities of AREA or its affiliates prior to the full integration of AREA into the Ares platform.Confidential – Not for Publication or Distribution6

ACRE’s Proven Business Model Positioned to Generate ValueACRE leverages its market position as a leading flexible capital provider to originate high qualitycommercial real estate loans that generate predictable income resulting in attractive dividends Strong Shareholder ValueProposition* 9% Dividend Yield(1) 0.85x Price to Book Value(2)Data as of December 31, 2017 unless otherwise indicated.* There is no assurance that dividends will continue at these same levels or at all.1. Represents closing price as of April 2, 2018 as compared to the annualized Q1-2018 dividend.2. Represents closing price as of April 2, 2018 as compared to the book value per share as of December 31, 2017.Confidential – Not for Publication or Distribution7

Attractive Market OpportunityREITs and other non-traditional lenders are gaining market share in a growing market. Record supply of privateequity dry powder & upcoming loan maturities create ongoing demand for flexible debt capital providersREITs and Other Non-Traditional Lenders Increasing Share of Growing Real Estate Debt Market (1)Commercial and Multifamily Debt Outstanding( trillions)4.0REITs and other nontraditional lendersrepresent just 6% of the 3.2 trillion commercialand multifamily realestate debt market 3.23.0 2.42.031% growth inREITs and other nontraditional lenders1.00.0Banks2012Agency / GSEsCMBSInsuranceFederal & Related2017REITs & OtherFuture Drivers of Demand for Flexible Debt Capital ProvidersU.S. CRE Loan Maturities (2)Record Supply of Private Equity Dry Powder (3)( billions) 200( billions) 400 300 150 200 100 100 0201820192020202120221. MBA Q4-17 Commercial / Multifamily Mortgage Debt Outstanding.2. TreppLLC from FederalReserveFourthorQuarter2017 Flow of Funds Data as of December 2017.Confidential– Not forPublicationDistribution83. Dry powder real estate equity funds, excluding real estate debt and distressed - Preqin February 2018.201220132014201520162017

National Direct Origination PlatformBroad capabilities combined with direct origination focus supports sourcing and structuring ofattractive investmentsEast (2) 774 millionWest (2) 793 millionMidwest (2) 834 millionChicago, IL Extensive National footprint (1)o Provides broader market view to select bestrelative value opportunities. We closed 5% ofcommitments evaluated over the last twelvemonths since 12/31/2017oEnables strong portfolio construction givenincreased diversificationoCan lead to greater control of pricing andtermsBelieved to improve credit outcomesNew York, NYoLos Angeles, CASouthwest (2) 751 millionDallas, TX Originated approximately 4.0 billion(2) of realestate debt with no losseso Disciplined property focus: Focused onmultifamily and commercial properties inmajor liquid marketso Strong repeat sponsorship: 40% of allcommitments since inception have been torepeat borrowers, reflective of deepening ourrelationships with the strongest sponsors(2)Atlanta,Southeast (2) GA 864 millionAres Real Estate Group Office( 20 investment professionalsin the aggregate)(1)As of December 31, 2017 unless otherwise indicated.1. Includes Ares principal and originating offices where real estate activities take place as of December 2017.2. Real estate debt originations (commitment balance) since inception through December 31, 2017.Confidential – Not for Publication or Distribution9

Focus on Quality Properties in Top MarketsTargeted Investments and Investment Strategy Direct origination of senior, floating rate CREloans Prioritize institutional-quality properties andsponsors Target top 30 and (generally) up to the top 50MSAs in the U.S.Focus on major, liquid markets with positivemarket dynamicsExpertise in wide range of property types withemphasis on minimizing volatilitySenior loans comprise the majority of theinvestment portfolioConfidential – Not for Publication or Distribution10

Illustrative Transactions of ACRE Originated Loans(1)Student HousingMultifamilyStudent HousingLodgingTexasTexasTexasCalifornia 24,000,000 42,700,000 41,000,000 40,000,000Senior LoanSenior LoanSenior LoanSenior LoanOfficeOfficeMultifamilyIllinoisCaliforniaNew York 82,000,000 3,116,000Senior LoanMezzanine 17,300,000IndustrialMinnesota 52,850,000Senior LoanSenior LoanMultifamilyMultifamilyNew YorkUtah 30,150,000 63,750,000Senior LoanSenior LoanMultifamilyMultifamilyFloridaTexas 19,175,000 27,500,000Senior LoanSenior Loan1. The transactions presented in this section are shown for illustrative purposes only and are the twelve most recent ACRE transactions through December 31, 2017 but are not necessarilyrepresentative of all transactions of a given type or of investments generally and are intended to be illustrative of some of the types of investments that may be made by ACRE in regard to realestate private debt transactions. Such transactions are not necessarily representative of the investment opportunities that will be available to ACRE in the future. In addition, past performanceis not indicative of future results.Confidential – Not for Publication or Distribution11

Diverse and Strong Performing Senior Loan Portfolio(1)Unleveraged Effective Yield (2,3)Summary Investment portfolio of 1.7 billion in outstanding principal Portfolio total weighted average unleveraged effective yieldof 6.3%(2) For the 1.9 billion of loans exited since inception throughDecember 31, 2017, the average cash flow growth on theunderlying properties was approximately 20% during ourloan commitment period Target debt to equity of an Positions(3)6.4%6.0% 6.2%6.2% 6.3%Q3-17Q4-17Q2-17Portfolio Self Storage11%Senior MortgageLoans96%6.0%Q1-17RetailMixed-use 1%Industrial 4%5%Hotel6%Subordinated Debt &Preferred dwest19%1. Data as of December 31, 2017.2. 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 anydeferred loan fees, costs, premium or discount) and assumes no dispositions, early prepayments or defaults. The Total Weighted Average Unleveraged Effective Yield is calculated based onthe average of Unleveraged Effective Yield of all loans held by the Company as of December 31, 2017 as weighted by the Outstanding Principal balance of each loan.3. Calculated based on outstanding principal balance.4. The use of leverage magnifies the potential for gain or loss on the amount invested and may increase the risk of investments. Target leverage depends on asset mix.5. Diversification does not assure profit or protect against loss.Confidential – Not for Publication or Distribution12

Deep Sources of Diverse Funding Enhances ACRE’s PortfolioDiverse Sources of Liquidity from Banks, Insurance Cos,Capital Markets Providers and Private Capital(1)(2)(5)Capital Markets 186 273Securitization – FL3 50Term Loan 140 110BanksWells Fargo Facility 125Citibank Facility 180BAML FacilityUBS FacilityDisciplined Approach to Funding Match funded Loan portfolio has weightedaverage remaining life ofapproximately 2.0 years(3) The Company’s financingagreements have a weightedaverage remaining term ofapproximately 3.2 years assumingthe Company exercises availablerenewal options(4)CNB FacilityU.S. Bank Facility 250Insurance 5001. Facility Diverse sources of liquidity provideadditional strength to the Company’scompetitive position 1.8 billion of capacity(2)Dollars in millions of borrowing capacity. Represents total commitments.Capacity data is as of December 31, 2017. Ability to draw on available capacity is subject to available collateral and lender approvals.Data as of December 31, 2017.Comprised of Secured Funding Agreements and Term Loan as of December 31, 2017 that are used for funding ACRE’s loans held for investment.The weighted average borrowings was 1.235 billion for the quarter ended December 31, 2017 and 1.122 billion for the year ended December 31, 2017.Confidential – Not for Publication or Distribution13

Loan Portfolio has been Positioned to Benefit from Higher RatesACRE has a match funded, floating rate, held for investment portfolio99% Floating Rate PortfolioFixed Rate1%Hypothetical Example of the Impact of Rising Rates on a 40 million Senior LoanAssumptions 40mm SeniorLoan‒ Earns L 4.00%(all-in effectiveyield)Libor of1.50%Libor of2.50% 40 mm 40 mm5.5%6.5% 2.20 mm 2.60 mm 28 mm 28 mm3.5%4.5%Interest Expense 0.98 mm 1.26 mmNet Interest Margin 1.22 mm 1.34 mm10.2%11.2%Senior LoanInterest RateInterest Income Financed with 28mm warehouseline (70% advancerate)‒ Pays L 2.00%Floating Rate99% 12 mm net equity‒ Net InterestMargin of 2.00%Warehouse LineInterest RateGross ROEon 12mm EquityOn a pro forma basis, a 100 basis point increase in Libor is calculated to result in an increase in annual netinterest earnings by 0.13 per share (1,2,3)1.2.3.The analysis detailed herein represents ACRE’s perspective and is merely a mathematical illustration. These metrics are shown for illustrative purposes only and theterms and characteristics of such transactions are not necessarily indicative of every type of transaction entered into or arranged by ACRE. Any future performancemay differ from those discussed herein. Accordingly, no representation or warranty is made in respect of this information. The gross ROEs shown above are not areliable indicator of future performance. Actual returns will be reduced by any applicable management fees and other expenses.Represents the annualized pro forma impact for the three month period ending 12/31/2017. Assumes (1) ACRE’s loans held for investment and correspondingliabilities during the fourth quarter of 2017 do not change over the course of the annualized period (e.g., no prepayments, dispositions or defaults) and (2) ACRE doesConfidentialNot for Publicationor Distribution14notincur any–incrementalexpenses. 0.13 per share is based on 28.599 million shares as of 12/31/17.

Tax Reform has Made ACRE’s Dividend Yield More AttractiveWe anticipate recent tax reform to enhance ACRE’s pre-tax equivalent dividend yield by 150bps In addition to reducing the top individual income tax rate, we anticipate the Tax Cuts and Jobs Act provides a 20% deductionon REIT dividend income(1)- This reduces the maximum tax rate on REIT dividends from the current highest marginal individual tax rate of 37% to29.6% Therefore, we expect the pre-tax equivalent dividend yield will be enhanced by approximately 150bpsIncrease in Pre-Tax Equivalent Dividend Yield15%10.7%9.2%10%5%0%(2)Post-Tax Reform Pre-tax Equivalent Dividend Yield(3)Pre-Tax Reform Dividend YieldNote: There is no assurance that dividends will continue at these levels or at all.1. We believe the deduction in dividend income is only for those securities that are directly held by an investor. This does not constitute tax advice to, and should not be relied upon by investors, whoshould consult their own tax advisors regarding the matters discussed herein, and the tax consequences of an investment in ACRE.2. Assumptions represent closing price as of April 2, 2018 and annualized Q1-18 dividend of 0.28 per share3. Assumptions represent closing price as of April 2, 2018 and annualized Q1-18 dividend of 0.28 per share. Includes reduction in tax rate and 20% deduction on REIT dividend income, reducing thecurrent highest marginal individual tax rate of 37% to 29.6%.Confidential – Not for Publication or Distribution15

Summary1Direct Originator With Key Competitive Advantages 2Broad national footprint to directly originate and source customized lending solutionsHighly experienced team with extensive credit capabilitiesStrong balance sheet with diverse sources of match fundingBenefits from sponsorship by Ares ManagementExecuting on Strategic Initiatives Augmenting originations staff and expanding geographic footprint to enhance originations Further aligning with the broader Ares real estate platform to grow sourcing and diligence capabilities3Potential to Improve Profitability Well positioned to benefit from increases in higher Libor rates Continuing to improve funding costs and capital efficiency to further enhance profitabilityAs of December 31, 2017.Confidential – Not for Publication or Distribution16

AppendixConfidential – Not for Publication or Distribution

AppendixTable of ContentsIllustrative Transactions & Portfolio DetailsISelect Financial StatementsIIPerformance NotesIIIConfidential – Not for Publication or Distribution18

I. Illustrative Transactions & Portfolio DetailsConfidential – Not for Publication or Distribution

Office – ColoradoSponsor completed 3mm in renovations and increased avg. rental ratesInvestment Overview: 21.0mm senior loan for the acquisition of a two buildingoffice complex located in the Greenwood Plaza submarket ofColorado The Sponsor’s business plan was to lease up vacant space atmarket rents and to successfully renew and mark to marketspace that was rolling in the next three years Sponsor planed to upgrade the lobby, corridors andbathrooms, and reposition the asset as a desirable smalltenant Class A- propertyInvestment Merits:Collateral OverviewProperty Type:OfficeSize:171,189 SFYear Built:1982 (Renovated 2007)Loan TermsCommitment Date:October 2014Loan size: 21.0 millionTerm/Amortization:3 1 1 years / IOPricing:Floating L 395 Strength of the submarket Strong sponsor that specialized in Class B/A- officeIdentified Risks: Business plan execution(1) Rollover/Leasing Risk(2)Ares “Edge”: Experience as owner, investor or lender to over 71 millionsf of Office allowed team to evaluate the sponsor businessplan, and price and structure loan to compensate for andmitigate risksThese loans represent the most recently realized senior loans for each property type as of 12/31/17. The transactions detailed herein represent historical transactions of ACRE involving senior loansissued in support of a borrower’s transitional business plan. In all cases, the loans were fully repaid. These transactions are shown for illustrative purposes only and the terms and characteristics ofsuch transactions are not necessarily indicative of every type of transaction entered into or arranged by ACRE. Any future portfolio investment may differ from those discussed herein. Portfolio orinvestment information in this presentation may not have been independently verified and may reflect normalized or adjusted amounts. Accordingly, no representation or warranty is made in respectof this information. For information about other realized senior loans, please contact us.1. Business plan execution risk refers to the risk of the sponsor being unable to carry out their proposed property improvement and /or revenue enhancing plans.2.Rollover/leasing risk refers to the risk of current tenant(s) vacating at lease maturity and the inability of the sponsor to re-lease the space at market pricing and/or on a timely basis.Confidential – Not for Publication or Distribution20

Portfolio – (Mostly Student Housing)Investment Portfolio of 22 student housing and apartment assets across 14 statesInvestment Overview: Provided a 170 million of preferred equity investment tosupport the financing of a 22-asset portfolio which consists ofclass A student housing assets to major universities,apartment properties, a medical office building and a selfstorage portfolio The borrower’s plan was to increase occupancy of thestudent housing assets, lease up apartment properties andexit the properties over the next two to four yearsInvestment Merits:Collateral OverviewProperty Type:VariousLocation:U.S. (14 States) High quality sponsor with deep stu

Ares Real Estate Group We have 10.2 billion(1) of assets under management and have invested over 15 billion of equity in 700 deals since 1993 Leading Platform of Real Estate Strategies (2) REAL ESTATE PRIVATE EQUITY REAL ESTATE DEBT U.S. Europe U.S. 4.6 billion 2.7 billion 2.9 billion Repositioning, Lease-up, Redevelopment,

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