On January 30, 2020, in connection with the previously announced underwriting agreement (the “Underwriting Agreement”) dated January 22, 2020 by and among Ares Commercial Real Estate Corporation (the “Company”), Ares Commercial Real Estate Management LLC, the Company’s external manager, and Wells Fargo Securities, LLC, Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC, as representatives of the several underwriters listed therein (collectively, the “Underwriters”), the Company sold an aggregate of 600,000 shares of the Company’s common stock, par value $0.01 per share to the Underwriters to the terms of the Underwriting Agreement. The shares were issued in connection with the exercise in full by the Underwriters of their 30-day option to purchase up to an additional 600,000 shares to the terms of the Underwriting Agreement.

The sale of additional shares closed on January 30, 2020 and generated net proceeds of approximately $9.5 million after deducting estimated transaction expenses. to the Underwriting Agreement, the Company has agreed, subject to certain exceptions, not to sell or transfer any shares of its common stock or any securities convertible into or exercisable or exchangeable for common stock for 45 days after January 22, 2020 without first obtaining the written consent of the Underwriters.

The offering was made to the Company’s effective shelf registration statement on Form S-3 (File No. 333-232742), which was originally filed with the Securities and Exchange Commission on July 19, 2019, and the related prospectus supplement and accompanying prospectus.

About ARES COMMERCIAL REAL ESTATE CORPORATION (NYSE:ACRE)

Ares Commercial Real Estate Corporation is a specialty finance company. The Company is focused on directly originating, managing and servicing a portfolio of commercial real estate (CRE) debt-related investments for its own account. It operates in two segments: principal lending and mortgage banking. Its target investments include senior loans, bridge loans, subordinated debt, preferred equity and other CRE investments. The Company is also engaged in the mortgage banking business through its subsidiary, ACRE Capital LLC (ACRE Capital). Its Principal Lending Business includes all business activities of the Company, which represents investments in real estate related loans and securities that are held for investment. In mortgage banking business, the Company directly originates long-term senior loans collateralized by multifamily and senior-living properties, and sells them to third parties pursuant to programs overseen by government agencies and government-sponsored enterprises.