ACRES Commercial Realty

Positives: strong use of term, non‑recourse financing (CLOs and term facilities), liquidity of 86.8 million dollars in Q1 2026, and manageable CECL reserve at 0.88% of amortized cost. The February 2026 1.0 billion dollar CLO diversified funding and extended term.

Negatives: leverage at 3.4x, a 5.75% senior note maturity in 2026 that must be refinanced or repaid, and macro CRE credit headwinds. We view the balance sheet as adequate but not bulletproof for a severe downturn.