SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

The Company’s management has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. There have been no subsequent events that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the consolidated financial statements as of and for the six months ended June 30, 2022, except as disclosed below.

On July 25, 2022, the Company exercised a 12-month extension option on the Metlife Facility to extend the maturity date to August 13, 2023.

On July 26, 2022, the Company’s Board of Directors approved a stock repurchase program of up to $50 million, which is expected to be in effect until July 26, 2023, or until the approved dollar amount has been used to repurchase shares (the “Repurchase Program”). Pursuant to the Repurchase Program, the Company may repurchase in amounts, at prices and at such times as it deems appropriate, subject to market conditions and other considerations, including all applicable legal requirements. Repurchases may include purchases on the open market or privately negotiated transactions, under Rule 10b5-1 trading plans, under accelerated share repurchase programs, in tender offers and otherwise. The Repurchase Program does not obligate the Company to acquire any particular amount of shares of its common stock and may be modified or suspended at any time at the Company’s discretion.

On July 26, 2022, the Company and ACREM entered into an Amended and Restated Management Agreement to incorporate the provisions of prior amendments, the material terms of which have been previously disclosed, update its investment guidelines and to make certain clarifying changes regarding eligible expense reimbursements.

On July 28, 2022, ACRC Lender CO LLC, a wholly owned subsidiary of the Company, as borrower, entered into a Credit and Security Agreement with Capital One, National Association, as administrative agent and collateral agent, and the

lender referred to therein. The Credit and Security Agreement provides for a $105.0 million recourse loan. The loan is secured by a $133.0 million senior mortgage loan held by the borrower on a multifamily property located in New York and is fully and unconditionally guaranteed by the Company pursuant to a Guaranty of Recourse Obligation. The initial maturity date of the loan is July 28, 2025, subject to two 12-month extensions, each of which may be exercised at the borrower’s option, subject to the satisfaction of certain conditions, including payment of an extension fee, which, if both were exercised, would extend the maturity date to July 28, 2027. The loan accrues interest at a per annum rate equal to the sum of one-month SOFR plus a spread of 2.00%.

The Company’s Board of Directors declared a regular cash dividend of $0.33 per common share and a supplemental cash dividend of $0.02 per common share for the third quarter of 2022. The third quarter 2022 and supplemental cash dividends will be payable on October 17, 2022 to common stockholders of record as of September 30, 2022.