Mortgage Finance: Updating estimates for ACRE, BRSP, and TRTX after the Q1 print

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Mortgage Finance: Updating estimates for ACRE, BRSP, and TRTX after the Q1 print

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Mortgage Finance

Updating estimates for ACRE, BRSP, and

TRTX after the Q1 print

Earnings Review

Ares Commercial Real Estate (ACRE) 22 May 2026

Ares Commercial Real Estate (ACRE) continues to make progress on its strategic Equity

initiatives to de-risk the portfolio and improve earnings. Positively, risk rated 4/5 loans United States

improved, capital deployment accelerated and the Q2 dividend will be stable. That said, Mortgage Finance

BVPS was moderately lower given the CECL reserve build, and there was a small uptick Derek Hewett

in non-accruals. Following the Q1 print, maintaining our 26/27 EPS forecast of Research Analyst

$0.26/$0.56. Maintain Underperform. BofAS+1 646 855 2087

derek.hewett@bofa.com

BrightSpire Capital (BRSP)

Overall, a mixed quarter, in our view. Adjusted DEPS was below expectations, non-

accruals/REO were higher, and undepreciated BVPS declined 2.4%. That said, the Exhibit 1: Updating 26/27 EPS outlook

watchlist improved, and further improvement is expected in Q2. Following the Q1 print, Old vs New EPS forecast

adjusting our 26/27 EPS forecast to $0.60/$0.64 from $0.66/$0.73 largely due to lower 2026 2027

spread income and higher operating expense. Maintain Underperform. BofA BofA BofA BofA

Old New Old New

TPG RE Finance (TRTX) ACRE $0.26 $0.26 $0.56 $0.56

Overall, a good quarter due to solid capital deployment, stable BVPS, and no negative BRSP $0.66 $0.60 $0.73 $0.64

TRTX $1.03 $1.03 $1.13 $1.10

credit migration. Following the Q1 print, maintaining our 2026 estimate of $1.03.

Source: BofA Global Research estimates

Slightly adjusting our 2027 EPS estimate to $1.10 from $1.13 due to lower spread BofA GLOBAL RESEARCH

income.