ACRES Commercial Realty Corp.

Good morning, ladies and gentlemen, and welcome to the second quarter 2026 Acres Commercial Realty Corp. earnings call. Currently, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session with instructions to follow at that time. If anyone requires assistance during the conference today, please press star then zero on your telephone. And as a reminder, this call is being recorded. I would now like to introduce your host for today's conference, Kyle Brengel, Vice President in Operations. Please go ahead, sir.

Good morning, and thank you for joining our call. I would like to highlight that we have posted the second quarter of 2026 earnings presentation to our website. This presentation contains summary and detailed information about the quarterly results of the company. Before we begin, I want to remind everyone that certain statements made during this call are not based on historical information and may constitute forward-looking statements. When used in this conference call, the word believes, anticipates, expects, and similar expressions are intended to identify forward-looking statements. Although the company believes these forward-looking statements are based on reasonable assumptions, such statements are based on management's current expectations and beliefs and are subject to several trends, risks, and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These risks and uncertainties are discussed in the company's reports filed with the SEC The company undertakes no obligation to update any of these forward-looking statements. Furthermore, certain non-GAAP financial measures may be discussed on this conference call. Our presentation of this information is not intended to be considered in isolation or as a substitute to the financial information presented in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most comparable measures prepared in accordance with generally accepted accounting principles are contained in the earnings presentation for this quarter. With me on the call today are Mark Fogel, President and CEO, Andrew Fentress, Chairman of ACR, and Eldron Blackwell, ACR CFO. I will now turn the call over to Mark.

Good morning, everyone, and thank you for joining our call. Today, I will provide an overview of our loan operations, real estate investments, and the health of the investment portfolio, while Eldron Blackwell, our CFO, will discuss financial statements, liquidity condition, book value, and operating results for the second quarter of 2026. Of course, we look forward to your questions at the end of our prepared remarks. The Acres team continues to actively manage the portfolio and has seen operations improving on underperforming assets. We are selective on the opportunities we pursue and the loans we originate. We still anticipate meeting our target $500 million of net growth in the REIT for 2026. We spoke our annual shareholders meeting last month at which time we proposed a share issuance in accordance with a merger agreement we entered into with our external manager, the result of which will be the internalization function of our manager. We are very pleased that approximately 99% of the votes cast on the proposal to issue shares as part of the internalization transaction were cast in favor of the proposal. The ACRES team has been working hard on the internalization and anticipates that closing will take place in short order. We look forward to providing more updates as we complete the transaction. Loan payoffs and paydowns during the period were $92.7 million and funded commitments during the quarter were $17.8 million Producing a net decrease to the loan portfolio of $74.9 million. Portfolio generally continues to perform, demonstrating sound and consistent underwriting and proactive asset management. At June 30th, our weighted average risk rating was 2.6, an increase from 2.5 at March 31st, and the number of loans rated 4 or 5 was 10, the same as the end of the first quarter. A portion of our CRE loan portfolio rated 4 or 5 based on the company's economic interest, was 14% at both June 30th and March 31st. We will now have ACR's CFO, Eldron Blackwell, discuss the financial statements and operating results during the second quarter.