Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2015	Feb. 29, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	Ares Commercial Real Estate Corp
Entity Central Index Key	0001529377
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 319,709,178
Entity Common Stock, Shares Outstanding		28,609,650
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents ($8 and $47 related to consolidated VIEs, respectively)	$ 8,995	$ 16,551
Restricted cash	30,380	66,121
Loans held for investment ($483,572 and $848,224 related to consolidated VIEs, respectively)	1,174,391	1,462,584
Loans held for sale, at fair value	30,612	203,006
Mortgage servicing rights, at fair value	61,800	58,889
Other assets ($2,695 and $3,438 of interest receivable related to consolidated VIEs, respectively; $35,607 and $18,352 of other receivables related to consolidated VIEs, respectively)	72,804	55,004
Total assets	1,378,982	1,862,155
LIABILITIES
Secured funding agreements	522,775	552,799
Warehouse lines of credit	24,806	193,165
Secured term loan	69,762
Convertible notes		67,414
Commercial mortgage-backed securitization debt (consolidated VIE)	61,815	217,495
Collateralized loan obligation securitization debt (consolidated VIE)	192,528	305,734
Allowance for loss sharing	8,969	12,349
Due to affiliate	2,658	2,735
Dividends payable	7,152	7,147
Other liabilities ($299 and $498 of interest payable related to consolidated VIEs, respectively)	32,029	22,431
Total liabilities	$ 922,494	$ 1,381,269
Commitments and contingencies (Note 8)
EQUITY
Common stock, par value $0.01 per share, 450,000,000 shares authorized at December 31, 2015 and 2014, 28,609,650 and 28,586,915 shares issued and outstanding at December 31, 2015 and 2014, respectively	$ 284	$ 284
Additional paid-in capital	421,179	420,344
Accumulated deficit	(11,992)	(17,674)
Total stockholders' equity	409,471	402,954
Non-controlling interests in consolidated VIEs	47,017	77,932
Total equity	456,488	480,886
Total liabilities and equity	$ 1,378,982	$ 1,862,155

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents related to consolidated VIE	$ 8	$ 47
Loans held for investment related to consolidated VIE	483,572	848,224
Other assets, interest receivable related to consolidated VIE	2,695	3,438
Other assets, certificates receivable related to consolidated VIE	35,607	18,352
Other liabilities, interest payable related to consolidated VIE	$ 299	$ 498
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	450,000,000	450,000,000
Common stock, shares issued	28,609,650	28,586,915
Common stock, shares outstanding	28,609,650	28,586,915

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net interest margin:
Interest income from loans held for investment									$ 86,337	$ 70,495	$ 37,600
Interest expense									(36,342)	(33,637)	(14,973)
Net interest margin									49,995	36,858	22,627
Mortgage banking revenue:
Servicing fees, net									16,051	16,399	5,754
Gains from mortgage banking activities									27,067	17,492	5,019
Provision for loss sharing									1,093	1,364	(6)
Change in fair value of mortgage servicing rights									(8,798)	(7,650)	(2,697)
Mortgage banking revenue									35,413	27,605	8,070
Gain on sale of loans										680	1,333
Total revenue	$ 20,924	$ 23,916	$ 22,131	$ 18,437	$ 20,792	$ 13,180	$ 17,413	$ 13,758	85,408	65,143	32,030
Expenses:
Management fees to affiliate									5,948	5,916	4,241
Professional fees									3,091	3,733	2,924
Compensation and benefits									20,448	18,649	5,456
Acquisition and investment pursuit costs										20	4,079
General and administrative expenses									6,795	9,252	3,955
General and administrative expenses reimbursed to affiliate									3,878	4,000	3,610
Total expenses									40,160	41,570	24,265
Changes in fair value of derivatives											1,739
Income from operations before gain on acquisition and income taxes									45,248	23,573	9,504
Gain on acquisition											4,438
Income before income taxes									45,248	23,573	13,942
Income tax expense (benefit)									1,928	(1,043)	176
Net income attributable to ACRE	11,052	11,710	11,263	9,295	9,121	4,102	6,638	4,755	43,320	24,616	13,766
Less: Net income attributable to non-controlling interests									(9,035)	(220)
Net income attributable to common stockholders	$ 8,877	$ 9,379	$ 8,967	$ 7,062	$ 8,901	$ 4,102	$ 6,638	$ 4,755	$ 34,285	$ 24,396	$ 13,766
Net income per common share:
Basic earnings per common share (in dollars per share)	$ 0.31	$ 0.33	$ 0.31	$ 0.25	$ 0.31	$ 0.14	$ 0.23	$ 0.17	$ 1.20	$ 0.86	$ 0.72
Diluted earnings per common share (in dollars per share)	$ 0.31	$ 0.33	$ 0.31	$ 0.25	$ 0.31	$ 0.14	$ 0.23	$ 0.17	$ 1.20	$ 0.85	$ 0.72
Weighted average number of common shares outstanding:
Basic weighted average shares of common stock outstanding (in shares)									28,501,897	28,459,309	18,989,500
Diluted weighted average shares of common stock outstanding (in shares)									28,597,568	28,585,022	19,038,152

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total Stockholders' Equity	Non-controlling interests	Total
Balance at Dec. 31, 2012	$ 92	$ 169,200	$ (3,854)	$ 165,438		$ 165,438
Balance (in shares) at Dec. 31, 2012	9,267,162
Increase (Decrease) in Stockholders' Equity
Sale of common stock	$ 186	250,501		250,687		$ 250,687
Sale of common stock (in shares)	18,601,590					18,601,590
Issuance of common stock - acquisition of ACRE Capital	$ 6	7,506		7,512		$ 7,512
Issuance of common stock - acquisition of ACRE Capital (in shares)	588,235
Offering costs		(8,412)		(8,412)		(8,412)
Stock-based compensation		524		524		524
Stock-based compensation (in shares)	49,990
Net income			13,766	13,766		13,766
2015 Convertible Notes		86		86		86
Dividends declared			(23,385)	(23,385)		(23,385)
Balance at Dec. 31, 2013	$ 284	419,405	(13,473)	406,216		$ 406,216
Balance (in shares) at Dec. 31, 2013	28,506,977
Increase (Decrease) in Stockholders' Equity
Sale of common stock (in shares)						0
Stock-based compensation		939		939		$ 939
Stock-based compensation (in shares)	79,938
Net income			24,396	24,396	$ 220	24,616
Dividends declared			(28,597)	(28,597)		(28,597)
Contributions from non-controlling interests					77,712	77,712
Balance at Dec. 31, 2014	$ 284	420,344	(17,674)	402,954	77,932	$ 480,886
Balance (in shares) at Dec. 31, 2014	28,586,915					28,586,915
Increase (Decrease) in Stockholders' Equity
Sale of common stock (in shares)						0
Stock-based compensation		835		835		$ 835
Stock-based compensation (in shares)	22,735
Net income			34,285	34,285	9,035	43,320
Dividends declared			(28,603)	(28,603)		(28,603)
Contributions from non-controlling interests					5,685	5,685
Distributions to non-controlling interests					(45,635)	(45,635)
Balance at Dec. 31, 2015	$ 284	$ 421,179	$ (11,992)	$ 409,471	$ 47,017	$ 456,488
Balance (in shares) at Dec. 31, 2015	28,609,650					28,609,650

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating activities:
Net income	$ 43,320	$ 24,616	$ 13,766
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of deferred financing costs	9,559	9,716	3,274
Change in mortgage banking activities	(12,596)	(7,955)	(3,110)
Change in fair value of mortgage servicing rights	8,798	7,650	2,697
Accretion of deferred loan origination fees and costs	(4,979)	(3,661)	(2,366)
Provision for loss sharing	(1,093)	(1,364)	6
Cash paid to settle loss sharing obligations	(2,264)	(2,581)	(2,040)
Originations of mortgage loans held for sale	(681,928)	(497,258)	(84,150)
Sale of mortgage loans held for sale to third parties	850,816	302,886	102,363
Stock-based compensation	835	939	524
Changes in fair value of derivatives			(1,739)
Gain on acquisition			(4,438)
Depreciation expense	219	160	38
Deferred tax expense	2,093	93	61
Changes in operating assets and liabilities:
Restricted cash	38,956	(43,811)	1,648
Other assets	20,040	(10,892)	(4,414)
Due to affiliate	(77)	(61)	1,476
Other liabilities	3,820	(1,391)	1,848
Net cash provided by (used in) operating activities	275,519	(222,914)	25,444
Investing activities:
Issuance of and fundings on loans held for investment	(228,500)	(711,136)	(675,607)
Principal repayment of loans held for investment	411,740	193,867	66,920
Issuance of a mortgage loan held for sale			(84,769)
Proceeds from sale of a mortgage loan held for sale	74,625	80,197
Receipt of origination fees	1,078	7,082	6,058
Acquisition of ACRE Capital, net of cash acquired			(58,258)
Purchases of other assets	(604)	(823)	(41)
Payments for acquisition of intangible assets		(1,008)
Payments for acquisition of mortgage servicing rights		(1,259)
Net cash provided by (used in) investing activities	258,339	(433,080)	(745,697)
Financing activities:
Proceeds from secured funding agreements	345,434	1,143,342	703,154
Repayments of secured funding agreements	(375,458)	(854,962)	(582,991)
Payment of secured funding costs	(8,013)	(10,841)	(7,033)
Proceeds from issuance of debt of consolidated VIEs		308,703	395,027
Repayments of debt of consolidated VIEs	(272,471)	(175,984)
Proceeds from issuance of common stock			250,687
Payment of offering costs		(113)	(8,834)
Proceeds from warehouse lines of credit	804,935	544,011	97,676
Repayments of warehouse lines of credit	(973,294)	(350,846)	(112,148)
Proceeds from secured term loan	75,000
Repayment of convertible debt	(69,000)
Dividends paid	(28,597)	(28,577)	(18,575)
Contributions from non-controlling interests	5,685	77,712
Distributions to non-controlling interests	(45,635)
Net cash provided by (used in) financing activities	(541,414)	652,445	716,963
Change in cash and cash equivalents	(7,556)	(3,549)	(3,290)
Cash and cash equivalents, beginning of period	16,551	20,100	23,390
Cash and cash equivalents, end of period	8,995	16,551	20,100
Supplemental Information:
Interest paid during the period	28,731	23,870	11,317
Income taxes paid during the period	83	430
Supplemental disclosure of noncash investing and financing activities:
Dividends declared, but not yet paid	7,152	7,147	7,127
Deferred financing and offering costs			174
Notes receivable related to consolidated VIEs	$ 35,607	$ 16,116
Issuance of common stock for acquisition of ACRE Capital			7,512
Fair value of assets acquired from ACRE Capital, net of cash acquired			112,609
Fair value of liabilities assumed from ACRE Capital			$ 48,401

ORGANIZATION	12 Months Ended
ORGANIZATION	Dec. 31, 2015
ORGANIZATION
ORGANIZATION	1. ORGANIZATION Ares Commercial Real Estate Corporation (together with its consolidated subsidiaries, the "Company" or "ACRE") is a specialty finance company that operates both as a principal lender and a mortgage banker (with respect to loans collateralized by multifamily and senior-living properties). Through Ares Commercial Real Estate Management LLC ("ACREM" or the Company's "Manager"), a Securities and Exchange Commission ("SEC") registered investment adviser and a subsidiary of Ares Management L.P. (NYSE: ARES) ("Ares Management"), a publicly traded, leading global alternative asset manager, it has investment professionals strategically located across the United States and Europe who directly source new loan opportunities for the Company with owners, operators and sponsors of commercial real estate ("CRE") properties. The Company was formed and commenced operations in late 2011. The Company is a Maryland corporation and completed its initial public offering (the "IPO") in May 2012. The Company is externally managed by its Manager, pursuant to the terms of a management agreement (the "Management Agreement"). In the Company's principal lending business, it is primarily focused on directly originating, managing and servicing a diversified portfolio of CRE debt-related investments for the Company's own account. The Company's target investments in its principal lending business include senior mortgage loans, subordinated debt, preferred equity, mezzanine loans and other CRE investments. These investments, which are referred to as the Company's "principal lending target investments," are generally held for investment and are secured, directly or indirectly, by office, multifamily, retail, industrial, lodging, senior-living and other commercial real estate properties, or by ownership interests therein. The Company is also engaged in the mortgage banking business through its wholly owned subsidiary, ACRE Capital LLC ("ACRE Capital"), which the Company believes is complementary to its principal lending business. In this business segment, the Company primarily originates, sells and services multifamily and senior-living related loans under programs offered by government-sponsored enterprises ("GSEs"), such as the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac") and by government agencies, such as the Government National Mortgage Association ("Ginnie Mae") and the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (together with Ginnie Mae, "HUD"). ACRE Capital is approved as a Fannie Mae Delegated Underwriting and Servicing ("DUS") lender, a Freddie Mac Program Plus® Seller/Servicer, a Multifamily Accelerated Processing and Section 232 LEAN lender for HUD, and a Ginnie Mae issuer. While the Company earns little interest income from these activities as it generally only holds loans for short periods, the Company receives origination fees when it closes loans and sale premiums when it sells loans. The Company also retains the rights to service the loans, which are known as mortgage servicing rights ("MSRs") and receives fees for such servicing during the life of the loans, which generally last ten years or more. The Company has elected and qualified to be taxed as a real estate investment trust ("REIT") for U.S. federal income tax purposes under the Internal Revenue Code of 1986, as amended, commencing with its taxable year ended December 31, 2012. The Company generally will not be subject to U.S. federal income taxes on its REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains, to the extent that it annually distributes all of its REIT taxable income to stockholders and complies with various other requirements as a REIT.

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2015

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with United States generally accepted accounting principles ("GAAP") and include the accounts of the Company, the consolidated variable interest entities ("VIEs") that the Company controls and of which the Company is the primary beneficiary, and the Company's wholly owned subsidiaries. The consolidated financial statements reflect all adjustments and reclassifications that, in the opinion of management, are necessary for the fair presentation of the Company's results of operations and financial condition as of and for the periods presented. All intercompany balances and transactions have been eliminated.

Variable Interest Entities

The Company evaluates all of its interests in VIEs for consolidation. When the Company's interests are determined to be variable interests, the Company assesses whether it is deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 810, Consolidation, defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. The Company considers its variable interests, as well as any variable interests of its related parties in making this determination. Where both of these factors are present, the Company is deemed to be the primary beneficiary and it consolidates the VIE. Where either one of these factors is not present, the Company is not the primary beneficiary and it does not consolidate the VIE.

To assess whether the Company has the power to direct the activities of a VIE that most significantly impact the VIE's economic performance, the Company considers all facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes first, identifying the activities that most significantly impact the VIE's economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE or have the right to unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE.

To assess whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers all of its economic interests, including debt and equity investments, servicing fees, and other arrangements deemed to be variable interests in the VIE. This assessment requires that the Company applies judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE's capital structure; and the reasons why the interests are held by the Company.

For VIEs of which the Company is determined to be the primary beneficiary, all of the underlying assets, liabilities, equity, revenue and expenses of the structures are consolidated into the Company's consolidated financial statements.

The Company performs an ongoing reassessment of: (1) whether any entities previously evaluated under the majority voting interest framework have become VIEs, based on certain events, and therefore are subject to the VIE consolidation framework, and (2) whether changes in the facts and circumstances regarding its involvement with a VIE cause the Company's consolidation conclusion regarding the VIE to change. See Note 16 included in these consolidated financial statements for further discussion of the Company's VIEs.

Segment Reporting

The Company has two reportable business segments: principal lending and mortgage banking. See Note 18 included in these consolidated financial statements for further discussion of the Company's reportable business segments.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation. Amortization of convertible notes issuance costs and accretion of convertible notes have been reclassified into amortization of deferred financing costs in the consolidated statements of cash flows. As of December 31, 2015, the Company no longer presents amortization of convertible notes issuance costs and accretion of convertible notes in its consolidated statements of cash flows.

Cash and Cash Equivalents

Cash and cash equivalents include funds on deposit with financial institutions, including demand deposits with financial institutions. Cash and short-term investments with an original maturity of three months or less when acquired are considered cash and cash equivalents for the purpose of the consolidated balance sheets and statements of cash flows.

Restricted Cash

Restricted cash includes escrow deposits for taxes, insurance, leasing outlays, capital expenditures, tenant security deposits and payments required under certain loan agreements. These escrow deposits are held on behalf of the respective borrowers and are offset by escrow liabilities included in other liabilities in the consolidated balance sheets. In connection with its mortgage banking business, the Company held restricted cash, which consisted of reserves that are a requirement of the Fannie Mae DUS program and borrower deposits, which represent funds that were collected for the processing of the borrowers loan applications and loan commitments.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and restricted cash, loans held for investment, MSRs, loans held for sale, interest receivable and derivative financial instruments. The Company places its cash and cash equivalents with financial institutions and, at times, cash held may exceed the FDIC-insured limit. The Company has exposure to credit risk on its loans held for investment and through its subsidiary ACRE Capital, the Company has exposure on credit risk on loans held for sale and the servicing portfolio whereby ACRE Capital shares in the risk of loss (see Note 7 included in these consolidated financial statements). The Company and the Company's Manager seek to manage credit risk by performing due diligence prior to origination or acquisition and through the use of non-recourse financing, when and where available and appropriate.

Loans Held for Investment

The Company originates CRE debt and related instruments generally to be held for investment. Loans that are held for investment are carried at cost, net of unamortized loan fees and origination costs, unless the loans are deemed impaired. Impairment occurs when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan. If a loan is considered to be impaired, the Company will record an allowance to reduce the carrying value of the loan to the present value of expected future cash flows discounted at the loan's contractual effective rate.

Each loan classified as held for investment is evaluated for impairment on a quarterly basis. Loans are collateralized by real estate. The extent of any credit deterioration associated with the performance and/or value of the underlying collateral property and the financial and operating capability of the borrower could impact the expected amounts received. The Company monitors performance of its investment portfolio under the following methodology: (1) borrower review, which analyzes the borrower's ability to execute on its original business plan, reviews its financial condition, assesses pending litigation and considers its general level of responsiveness and cooperation; (2) economic review, which considers underlying collateral, (i.e. leasing performance, unit sales and cash flow of the collateral and its ability to cover debt service, as well as the residual loan balance at maturity); (3) property review, which considers current environmental risks, changes in insurance costs or coverage, current site visibility, capital expenditures and market perception; and (4) market review, which analyzes the collateral from a supply and demand perspective of similar property types, as well as from a capital markets perspective. Such impairment analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, and the borrower's exit plan, among other factors.

In addition, the Company evaluates the entire portfolio to determine whether the portfolio has any impairment that requires a valuation allowance on the remainder of the loan portfolio. As of December 31, 2015, 2014 and 2013, the Company did not recognize any impairment charges with respect to its loans held for investment.

Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed against interest income in the period the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management's judgment regarding the borrower's ability to make pending principal and interest payments. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management's judgment, are likely to remain current. The Company may make exceptions to placing a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection.

Preferred equity investments, which are subordinate to any loans but senior to common equity, are accounted for as loans held for investment and are carried at cost, net of unamortized loan fees and origination costs, unless the loans are deemed impaired, and are included within loans held for investment in the Company's consolidated balance sheets. The Company accretes or amortizes any discounts or premiums over the life of the related loan held for investment utilizing the effective interest method.

Loans Held for Sale

Through its subsidiaries, including ACRE Capital, ACRC Lender W TRS LLC ("ACRC W TRS") and ACRC Lender U TRS LLC ("ACRC U TRS"), the Company originates mortgage loans held for sale, which are recorded at fair value and accounted for under FASB ASC Topic 860, Transfers and Servicing. The holding period for loans originated by ACRE Capital is approximately 30 days. The carrying value of the mortgage loans sold is reduced by the value allocated to the associated retained MSRs based on relative fair value at the time of the sale. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the adjusted value of the related mortgage loans sold.

Although the Company generally holds its target investments as long-term investments within its principal lending business, the Company may occasionally classify some of its investments as held for sale. Investments held for sale will be carried at fair value within loans held for sale in the Company's consolidated balance sheets, with changes in fair value recorded through earnings. The fees received are deferred and recognized as part of the gain or loss on sale. As of December 31, 2015 and 2014, the Company did not have any loans held for sale in its principal lending business.

Mortgage Servicing Rights

When a mortgage loan is sold, ACRE Capital retains the right to service the loan and recognizes the MSR at fair value. The initial fair value represents expected net cash flows from servicing, as well as interest earnings on escrows and interim cash balances, borrower prepayment penalties, delinquency rates, late charges along with ancillary fees that are discounted at a rate that reflects the credit and liquidity risk of the MSR over the estimated life of the underlying loan. After initial recognition, changes in the MSR fair value are included within change in fair value of mortgage servicing rights in the Company's consolidated statements of operations for the period in which the change occurs.

Intangible Assets

Intangible assets consist of ACRE Capital's licenses permitting it to participate in programs offered by Fannie Mae, Freddie Mac and HUD (including Ginnie Mae). These licenses are intangible assets with indefinite lives. The Company evaluates identified intangibles for impairment annually or if other events or circumstances indicate that the carrying value may be impaired.

Debt Issuance Costs

Debt issuance costs under the Company's indebtedness are capitalized and amortized over the terms of the respective debt instrument. Debt issuance costs related to debt securitizations are capitalized and amortized over the term of the underlying loans using the effective interest method. When an underlying loan is prepaid in a debt securitization, the related unamortized debt issuance costs are charged to expense based on a pro-rata share of the debt issuance costs being allocated to the specific loans that were prepaid. Amortization of debt issuance costs is included within interest expense in the Company's consolidated statements of operations while the unamortized balance on (i) Secured Funding Agreements and Warehouse Lines of Credit (each individually defined in Note 6 included in these consolidated financial statements) are included within other assets and (ii) the Secured Term Loan and the 2015 Convertible Notes (each individually defined in Note 6 included in these consolidated financial statements) are included as a reduction to the carrying amount of the liability, in the Company's consolidated balance sheets.

The original issue discount ("OID") on amounts drawn under the Company's Secured Term Loan (defined in Note 6 included in these consolidated financial statements) represents a discount to the face amount of the drawn debt obligations. The OID is amortized over the term of the Secured Term Loan using the effective interest method and is included within interest expense in the Company's consolidated statements of operations while the unamortized balance is a reduction to the carrying amount of the Secured Term Loan in the Company's consolidated balance sheets.

Derivative Financial Instruments

The Company does not hold or issue derivative instruments for trading purposes. The Company recognizes derivatives in its consolidated balance sheets, measures them at their estimated fair value and recognizes changes in their estimated fair value in the Company's consolidated statements of operations for the period in which the change occurs.

Through its subsidiary, ACRE Capital, the Company enters into loan commitments with borrowers on loan originations whereby the interest rate on the prospective loan is determined prior to funding. In general, ACRE Capital simultaneously enters into forward sale commitments with investors in order to hedge interest rate exposure on loan commitments. The forward sale commitment with the investor locks in an interest rate and price for the sale of the loan. The terms of the loan commitment with the borrower and the forward sale commitment with the investor are matched with the objective of hedging interest rate risk. Loan commitments and forward sale commitments are considered undesignated derivative instruments. Accordingly, such commitments, along with any related fees received from potential borrowers, are recorded at fair value, with changes in fair value recorded in earnings.

On December 19, 2012, the Company issued unsecured 7.00% Convertible Senior Notes that matured in December 2015 (the "2015 Convertible Notes"). The conversion features of the 2015 Convertible Notes were deemed to be an embedded derivative under FASB ASC Topic 815, Derivatives and Hedging ("ASC 815"). In accordance with ASC 815, the Company was required to bifurcate the embedded derivative related to the conversion features of the 2015 Convertible Notes. Prior to June 26, 2013, the Company recognized the embedded derivative as a liability on its balance sheet, measured at its estimated fair value and recognized changes in its estimated fair value within changes in fair value of derivatives in the Company's consolidated statements of operations for the period in which the change occurs. See Note 9 included in these consolidated financial statements for information on the derivative liability reclassification. In December 2015, the Company repaid the entire aggregate principal amount outstanding of its 2015 Convertible Notes. See Note 6 included in these consolidated financial statements for information on the 2015 Convertible Notes redemption.

Fair Value Measurements

GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The financial instruments recorded at fair value on a recurring basis in the Company's consolidated financial statements are derivative financial instruments, MSRs and loans held for sale. The Company has not elected the fair value option for certain other financial instruments, including loans held for investment, secured funding agreements and other debt instruments. Such financial instruments are carried at cost. Fair value is separately disclosed (see Note 13 included in these consolidated financial statements).

Allowance for Loss Sharing

When a loan is sold under the Fannie Mae DUS program, ACRE Capital undertakes an obligation to partially guarantee the performance of the loan. The date ACRE Capital commits to make a loan to a borrower, a liability for the fair value of the obligation undertaken in issuing the guarantee is recognized. Subsequent to the initial commitment date, the Company monitors the performance of each loan for events or circumstances which may signal an additional liability to be recognized if there is a probable and estimable loss. The initial fair value of the guarantee is estimated by examining historical loss share experienced in the ACRE Capital Fannie Mae DUS portfolio over the most recent ten-year period. The initial fair value of the guarantee is included within the provision for loss sharing in the Company's consolidated statements of operations. These historical loss shares serve as a basis to derive a loss share rate which is then applied to the current ACRE Capital DUS portfolio (net of specifically identified impaired loans that are subject to a separate loss share reserve analysis).

Servicing Fee Payable

ACRE Capital provides additional payments to certain personnel by providing them with a percentage of the servicing fee revenue that is earned by ACRE Capital, which is initially recorded as a liability when ACRE Capital commits to make a loan to a borrower (the "servicing fee payable"). The initial fair value of the liability represents the expected net cash payments over the life of the related mortgage loan that are discounted at a rate that reflects the credit and liquidity risk of the related MSR. ACRE Capital incurs an expense over the life of each loan as long as the related loan is performing. If a particular loan is not performing, the recipient will not receive the additional compensation on that loan, and if a loss sharing event is triggered, the recipient will not receive a portion of the additional compensation on other loans. The servicing fee payable is included within other liabilities in the consolidated balance sheets. The initial fair value of the related expense is included within gains from mortgage banking activities and the changes in the fair value of the servicing fee payable over the life of the related mortgage loan is included within servicing fee revenue on a net basis in the consolidated statements of operations in the period in which the change occurs.

Revenue Recognition

Interest income from loans held for investment is accrued based on the outstanding principal amount and the contractual terms of each loan. For loans held for investment, origination fees, contractual exit fees and direct loan origination costs are also recognized in interest income from loans held for investment over the initial loan term as a yield adjustment using the effective interest method.

A reconciliation of the Company's interest income from loans held for investment, excluding non-controlling interests, to the Company's interest income from loans held for investment as included within its consolidated statements of operations is as follows ($ in thousands):

	For the year ended December 31,
	2015		2014
Interest income from loans held for investment, excluding non-controlling interests	$	77,278	$	70,188
Interest income from non-controlling interest investment held by third parties		9,059		307

Interest income from loans held for investment	$	86,337	$	70,495

Servicing fees are earned for servicing mortgage loans, including all activities related to servicing the loans, and are recognized as services are provided over the life of the related mortgage loan. Also included in servicing fees are the net fees earned on borrower prepayment penalties and interest earned on borrowers' escrow payments and interim cash balances, along with other ancillary fees and reduced by write-offs of MSRs for loans that are prepaid, changes in the fair value of the servicing fee payable and interest expense related to escrow accounts.

Gains from mortgage banking activities includes the initial fair value of MSRs, loan origination fees, gain on the sale of loans originated, interest income and fees earned on loans held for sale, changes to the fair value of derivative financial instruments attributable to the loan commitments and forward sale commitments and reduced by the expense related to the initial fair value of the servicing fee payable and the interest expense related to the Warehouse Lines of Credit (as defined in Note 6 included in these consolidated financial statements). The initial fair value of MSRs, loan origination fees, gain on the sale of loans originated, certain direct loan origination costs for loans held for sale and the expenses related to the initial fair value of the servicing fee payable are recognized when ACRE Capital commits to make a loan to a borrower. When the Company settles a sale agreement and transfers the mortgage loan to the buyer, the Company recognizes a MSR asset equal to the present value of the expected net cash flows associated with the servicing of loans sold.

Net Interest Margin and Interest Expense

Net interest margin within the consolidated statements of operations is a measure that is specific to the Company's principal lending business and serves to measure the performance of the principal lending segment's loans held for investment as compared to its use of debt leverage. The Company includes interest income from its loans held for investment and interest expense related to its Secured Funding Agreements, securitizations debt, the Secured Term Loan and the 2015 Convertible Notes (individually defined in Note 6 included in these consolidated financial statements) in net interest margin. For the years ended December 31, 2015, 2014 and 2013, interest expense is comprised of the following ($ in thousands):

	For the year ended December 31,
	2015		2014		2013
Secured funding agreements and securitizations debt	$	29,740	$	27,299	$	8,774
Secured term loan		388		—		—
Convertible notes		6,214		6,338		6,199

Interest expense	$	36,342	$	33,637	$	14,973

Stock-Based Compensation

The Company recognizes the cost of stock-based compensation, which is included within compensation and benefits for ACRE Capital and general and administrative expenses for ACRE in the consolidated statements of operations. The fair value of the time vested restricted stock or restricted stock units granted is recorded to expense on a straight-line basis over the vesting period for the award, with an offsetting increase in stockholders' equity. For grants to directors, officers and employees, the fair value is determined based upon the market price of the stock on the grant date.

Certain ACRE Capital employees were granted restricted stock that vest in proportion to various financial performance targets being met over a specified period of time. The fair value of the performance based restricted stock granted is recorded to expense on an accelerated basis, using the accelerated attribution method, over the performance period for the award, with an offsetting increase in stockholders' equity. For performance based measures, compensation expense, net of estimated forfeitures, is recorded based on the Company's estimate of the probable achievement of such measures.

Underwriting Commissions and Offering Costs

Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a reduction of additional paid-in capital. Costs incurred that are not directly associated with the completion of a common stock offering are expensed when incurred. Underwriting commissions that are the responsibility of and paid by a related party, such as the Company's Manager, are reflected as a contribution of additional paid-in capital from a sponsor in the consolidated financial statements.

Income Taxes

The Company has elected and qualified for taxation as a REIT commencing with its taxable year ended December 31, 2012. As a result of the Company's REIT qualification and its distribution policy, the Company does not generally pay U.S. federal corporate level income taxes. Many of the REIT requirements, however, are highly technical and complex. To continue to qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that the Company distribute annually at least 90% of the Company's REIT taxable income to the Company's stockholders. If the Company fails to continue to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, the Company will be subject to U.S. federal and state income taxes at regular corporate rates (including any applicable alternative minimum tax) beginning with the year in which it fails to qualify and may be precluded from being able to elect to be treated as a REIT for the Company's four subsequent taxable years. Even though the Company currently qualifies for taxation as a REIT, the Company may be subject to certain U.S. federal, state, local and foreign taxes on the Company's income and property and to U.S. federal income and excise taxes on the Company's undistributed REIT taxable income.

In connection with the acquisition of ACRE Capital, the Company created a wholly owned subsidiary, ACRE Capital Holdings LLC ("TRS Holdings"), to hold the common units of ACRE Capital. The Company formed a wholly owned subsidiary in December 2013, ACRC W TRS and in March 2014, ACRC U TRS in order to issue and hold certain loans intended for sale. The Company currently owns 100% of the equity of TRS Holdings, ACRC W TRS and ACRC U TRS. Entity classification elections to be taxed as a corporation and taxable REIT subsidiary ("TRS") elections were made with respect to TRS Holdings, ACRC W TRS and ACRC U TRS. A TRS is an entity taxed as a corporation other than a REIT in which a REIT directly or indirectly holds equity, and that has made a joint election with such REIT to be treated as a TRS. Other than some activities relating to lodging and health care facilities, a TRS generally may engage in any business, including investing in assets and engaging in activities that could not be held or conducted directly by the Company without jeopardizing its qualification as a REIT. A TRS is subject to applicable U.S. federal, state, local and foreign income tax on its taxable income. In addition, as a REIT, the Company also may be subject to a 100% excise tax on certain transactions between it and its TRS that are not conducted on an arm's-length basis.

For financial reporting purposes, a provision for current and deferred taxes has been established for the portion of the Company's GAAP consolidated earnings recognized by TRS Holdings, ACRC W TRS and ACRC U TRS.

FASB ASC Topic 740, Income Taxes ("ASC 740"), prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are well documented and supported. As of December 31, 2015 and 2014, based on the Company's evaluation, there is no reserve for any uncertain income tax positions. TRS Holdings, ACRC W TRS and ACRC U TRS recognize interest and penalties, if any, related to unrecognized tax benefits within income tax expense in the consolidated statements of operations. Accrued interest and penalties, if any, are included within other liabilities in the consolidated balance sheets.

Comprehensive Income

For the years ended December 31, 2015, 2014 and 2013, comprehensive income equaled net income; therefore, a separate consolidated statement of comprehensive income is not included in the accompanying consolidated financial statements.

Earnings per Share

The Company calculates basic earnings (loss) per share by dividing net income (loss) allocable to common stockholders for the period by the weighted-average shares of common stock outstanding for that period after consideration of the earnings (loss) allocated to the Company's restricted stock, which are participating securities as defined in GAAP. Diluted earnings (loss) per share takes into effect any dilutive instruments, such as restricted stock and convertible debt, except when doing so would be anti-dilutive. With respect to the 2015 Convertible Notes, the Company applied the treasury stock method when determining the dilutive impact on earnings per share.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates.

Business Combinations

The Company accounts for business combinations using the acquisition method of accounting, under which the purchase price of the acquisition is allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date. The Company recognizes identifiable assets acquired and liabilities (both specific and contingent) assumed at their fair values at the acquisition date. Furthermore, acquisition-related costs, such as due diligence, legal and accounting fees, are not capitalized or applied in determining the fair value of the acquired assets. The excess of the assets acquired and liabilities assumed over the purchase price is recognized as a gain on acquisition. During the measurement period, the Company records adjustments to the assets acquired and liabilities assumed with corresponding adjustments to the gain on acquisition. After the measurement period, which could be up to one year after the transaction date, subsequent adjustments are recorded through earnings.

Asset Acquisitions

The Company accounts for acquired assets and assumed liabilities that do not meet the definition of a business as an asset acquisition, under which the cost of the acquisition is allocated to the assets acquired and liabilities assumed on a relative fair value basis. Acquisition-related costs, such as due diligence, legal and accounting fees, are capitalized as a component of the cost of the assets acquired.

Costs Associated with Restructuring Activities

The Company began restructuring and relocating certain ACRE Capital support services during the three months ended March 31, 2014. The Company incurred costs related to these restructuring activities, including employee termination costs and office relocation costs. The employee termination costs are associated with the severance of certain employees, retention bonuses and guaranteed bonuses to certain key employees, insurance and outplacement, which were accounted for on a straight-line basis over the period from notification through each employee's termination date. If employees were required to render services (beyond a minimum retention period) in order to receive the termination benefits, a liability for employee termination costs was measured initially at the communication date based on its fair value, as of the termination date, and recognized ratably over the future service period. Office relocation costs included costs that were incurred in the physical move of offices and incremental rent costs, which were expensed when space was vacated. The costs incurred were included within general and administrative expenses in the Company's consolidated statements of operations. The ACRE Capital restructuring was completed as of December 31, 2014. See Note 20 included in these consolidated financial statements.

Recent Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, "Revenue Recognition." Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU No. 2014-09 are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.

In February 2015, the FASB issued ASU No. 2015-02, "Consolidation: Amendments to the Consolidation Analysis (Topic 810)." The guidance in this ASU includes amendments to Topic 810, "Consolidation." The new guidance modifies the consolidation analysis for limited and general partnerships and similar type entities, as well as variable interests in a VIE, particularly those that have fee arrangements and related party relationships. Additionally, it provides a scope exception to the consolidation guidance for certain entities. The amendments in ASU No. 2015-02 are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03, "Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." The new guidance modifies the requirements for reporting debt issuance costs. Under the amendments in ASU No. 2015-03, debt issuance costs related to a recognized debt liability will no longer be recorded as a separate asset, but will be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU No. 2015-03. In addition, in August 2015, the FASB issued ASU No. 2015-15, "Interest—Imputation of Interest (Subtopic 835-30)." The additional guidance reiterates that the SEC would not object to an entity deferring and presenting debt issuance costs related to a line of credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings. ASU No. 2015-03 and ASU No. 2015-15 are required to be applied retrospectively for periods beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The Company early adopted this guidance retrospectively during the fourth quarter of 2015. As a result of adopting this guidance, the following balance sheet line items decreased as of December 31, 2014 as presented in the following table ($ in thousands):

	As of December 31, 2014
	Other Assets			Total Assets			Convertible Notes			Commercial Mortgage- Backed Securitization Debt			Collateralized Loan Obligation Securitization Debt			Total Liabilities			Total Liabilities and Equity
Previously reported	$	60,502		$	1,867,653		$	68,395		$	219,043		$	308,703		$	1,386,767		$	1,867,653
Deferred debt issuance costs		(5,498	)		(5,498	)		(981	)		(1,548	)		(2,969	)		(5,498	)		(5,498	)

Current presentation	$	55,004		$	1,862,155		$	67,414		$	217,495		$	305,734		$	1,381,269		$	1,862,155

In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." The guidance in this ASU supersedes the leasing guidance in Topic 840, "Leases." Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases. The amendments in ASU No. 2016-02 are effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.

LOANS HELD FOR INVESTMENT

12 Months Ended

Dec. 31, 2015

LOANS HELD FOR INVESTMENT.

LOANS HELD FOR INVESTMENT

3. LOANS HELD FOR INVESTMENT

As of December 31, 2015, the Company had originated or co-originated 38 loans held for investment, excluding 24 loans that were repaid or sold since inception. The aggregate originated commitment under these loans at closing was approximately $1.3 billion and outstanding principal was $1.1 billion, excluding non-controlling interests held by third parties, as of December 31, 2015. During the year ended December 31, 2015, the Company funded approximately $229.9 million of outstanding principal, received repayments of $410.6 million of outstanding principal, excluding non-controlling interests held by third parties, and sold a $75.0 million loan to a third party as described in more detail in the tables below. Such investments are referred to herein as the Company's "investment portfolio." As of December 31, 2015, 66.2% of the Company's loans have LIBOR floors, with a weighted average floor of 0.24%, calculated based on loans with LIBOR floors. References to LIBOR or "L" are to 30-day LIBOR (unless otherwise specifically stated).

The Company's investments in mortgages and loans held for investment are accounted for at amortized cost. The following tables summarize the Company's loans held for investment as of December 31, 2015 and 2014 ($ in thousands):

	As of December 31, 2015
	Carrying Amount(1)		Outstanding Principal(1)		Weighted Average Interest Rate			Weighted Average Unleveraged Effective Yield(2)			Weighted Average Remaining Life (Years)
Senior mortgage loans	$	961,395	$	965,578		4.4	%		5.1	%		1.4
Subordinated debt and preferred equity investments		166,417		168,264		10.6	%		11.2	%		5.1

Total loans held for investment portfolio (excluding non-controlling interests held by third parties)	$	1,127,812	$	1,133,842		5.3	%		6.0	%		1.9

	As of December 31, 2014
	Carrying Amount(1)		Outstanding Principal(1)		Weighted Average Interest Rate			Weighted Average Unleveraged Effective Yield(2)			Weighted Average Remaining Life (Years)
Senior mortgage loans	$	1,156,476	$	1,164,055		4.5	%		5.0	%		2.1
Subordinated debt and preferred equity investments		228,499		231,226		10.3	%		10.7	%		6.1

Total loans held for investment portfolio (excluding non-controlling interests held by third parties)	$	1,384,975	$	1,395,281		5.5	%		6.0	%		2.8

(1)The difference between the Carrying Amount and the Outstanding Principal face amount of the loans held for investment consists of unamortized purchase discount, deferred loan fees and loan origination costs. The tables above exclude non-controlling interests held by third parties. A reconciliation of the Carrying Amount of loans held for investment portfolio, excluding non-controlling interests, to the Carrying Amount of loans held for investment, as included within the Company's consolidated balance sheets is presented below.

(2)Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premium or discount) and assumes no dispositions, early prepayments or defaults. The Total Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all loans held by the Company as of December 31, 2015 and 2014 as weighted by the Outstanding Principal balance of each loan.

A reconciliation of the Company's loans held for investment portfolio, excluding non-controlling interests held by third parties, to the Company's loans held for investment as included within its consolidated balance sheets is as follows ($ in thousands):

	As of December 31, 2015
	Carrying Amount		Outstanding Principal
Total loans held for investment portfolio (excluding non-controlling interests held by third parties)	$	1,127,812	$	1,133,842
Non-controlling interest investment held by third parties		46,579		46,579

Loans held for investment	$	1,174,391	$	1,180,421

	As of December 31, 2014
	Carrying Amount		Outstanding Principal
Total loans held for investment portfolio (excluding non-controlling interests held by third parties)	$	1,384,975	$	1,395,281
Non-controlling interest investment held by third parties		77,609		77,609

Loans held for investment	$	1,462,584	$	1,472,890

A more detailed listing of the Company's investment portfolio, excluding non-controlling interests, based on information available as of December 31, 2015 is as follows ($ in millions, except percentages):

Loan Type	Location	Outstanding Principal(1)		Carrying Amount(1)		Interest Rate			Unleveraged Effective Yield(2)			Maturity Date(3)			Payment Terms(4)
Senior Mortgage Loans:
Office	TX	$	80.5	$	80.0		L+5.00	%		6.2	%		Jan 2017			I/O
Retail	IL		75.9		75.6		L+4.00%	(6)		4.8	%		Aug 2017			I/O
Mixed-use	IL		53.2		52.7		L+3.60	%		4.4	%		Oct 2018			I/O
Office	FL		47.3		47.3		L+5.25	%		5.6	%		Apr 2016			I/O
Multifamily	TX		44.7		44.7		L+3.75	%		4.7	%		July 2016			I/O
Healthcare	NY		41.6		41.4		L+5.00	%		5.9	%		Dec 2016			I/O
Industrial	MO/KS		37.4		37.3		L+4.30	%		5.2	%		Jan 2017			P/I	(5)
Hotel	NY		36.5		36.2		L+4.75	%		5.6	%		June 2018			I/O
Hotel	MI		35.2		35.1		L+4.15	%		4.8	%		July 2017			I/O
Multifamily	TX		35.0		35.0		L+3.75	%		4.7	%		July 2016			I/O
Office	FL		34.0		33.9		L+3.65	%		4.3	%		Oct 2017			I/O
Industrial	OH		32.5		32.3		L+4.20	%		5.0	%		May 2018			I/O	(5)
Retail	IL		30.4		30.2		L+3.25	%		4.1	%		Sep 2018			I/O
Multifamily	NY		28.3		28.2		L+3.75	%		4.7	%		Oct 2017			I/O
Multifamily	TX		27.6		27.5		L+3.65	%		4.6	%		Jan 2017			I/O
Office	OR		28.4		28.1		L+3.75	%		4.6	%		Oct 2018			I/O
Mixed-use	NY		28.0		27.9		L+4.25	%		5.0	%		Aug 2017			I/O
Office	KS		25.5		25.5		L+5.00	%		5.9	%		Mar 2016			I/O
Multifamily	TX		25.0		24.9		L+3.65	%		4.6	%		Jan 2017			I/O
Multifamily	TX		23.9		23.8		L+3.80	%		4.4	%		Jan 2019			I/O
Multifamily	GA		23.1		23.0		L+3.85	%		5.0	%		May 2017			I/O
Multifamily	AZ		22.1		22.1		L+4.25	%		5.5	%		Sep 2016			I/O
Industrial	VA		19.0		19.0		L+5.25	%		6.4	%		Jan 2016	(7)		I/O
Office	CO		18.7		18.5		L+3.95	%		4.9	%		Dec 2017			I/O
Office	CA		15.9		15.8		L+3.75	%		4.6	%		July 2016			I/O
Multifamily	NC		16.0		15.9		L+4.00	%		5.0	%		Apr 2017			I/O
Office	CA		14.9		14.9		L+4.50	%		5.5	%		July 2016			I/O
Multifamily	NY		14.9		14.9		L+3.85	%		4.7	%		Nov 2017			I/O
Office	CA		14.5		14.5		L+4.75	%		5.8	%		Feb 2016			I/O
Mixed-use	NY		13.1		13.0		L+3.95	%		5.0	%		Sep 2017			I/O
Multifamily	FL		12.3		12.2		L+3.75	%		4.8	%		Apr 2017			I/O
Industrial	CA		10.1		10.0		L+5.25	%		6.5	%		May 2017			I/O
Subordinated Debt and Preferred Equity Investments:
Multifamily	GA and FL		50.8		50.3		L+11.85%	(8)		12.5	%		June 2021			I/O
Multifamily	NY		33.3		33.2		L+8.07	%		8.8	%		Jan 2019			I/O
Office	GA		14.3		14.3		9.50	%		9.5	%		Aug 2017			I/O
Mixed-use	NY		16.5		16.4		11.50%	(9)		12.1	%		Nov 2016			I/O
Multifamily	TX		4.9		4.8		L+11.00%	(10)		11.8	%		Oct 2016			I/O
Various	Diversified(11)		48.5		47.4		10.95	%		11.7	%		Dec 2024			I/O

Total/Weighted Average		$	1,133.8	$	1,127.8					6.0	%


(1)	The difference between the Carrying Amount and the Outstanding Principal amount of the loans held for investment consists of unamortized purchase discount, deferred loan fees and loan origination costs.
(2)	Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premium or discount) and assumes no dispositions, early prepayments or defaults. Unleveraged Effective Yield for each loan is calculated based on LIBOR as of December 31, 2015 or the LIBOR floor, as applicable. The Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all loans held by the Company as of December 31, 2015 as weighted by the Outstanding Principal balance of each loan.
(3)	Certain loans are subject to contractual extension options that vary between one and two 12-month extensions and may be subject to performance based or other conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment penalty. The Company may also extend contractual maturities in connection with loan modifications.
(4)	I/O = interest only, P/I = principal and interest.
(5)	In January 2015, amortization began on the senior Missouri/Kansas loan, which had an outstanding principal balance of $37.4 million as of December 31, 2015. In May 2017, amortization will begin on the senior Ohio loan, which had an outstanding principal balance of $32.5 million as of December 31, 2015. The remainder of the loans in the Company's principal lending portfolio are non-amortizing through their primary terms.
(6)	In April 2015, the Company entered into a loan modification that lowered the interest rate to L+4.00% with a 4.20% interest rate floor and extended the make-whole provision to November 2016.
(7)	In December 2015, the Company entered into a modification agreement that extended the maturity date to January 2016.
(8)	The preferred return is L+11.85% with 2.00% as payment-in-kind ("PIK"), to the extent cash flow is not available. There is no capped dollar amount on accrued PIK.
(9)	The interest rate is 11.50% with a 9.00% current pay and up to a capped dollar amount as PIK based on the borrower's election. In July 2015, the Company entered into an amendment to increase the loan commitment and outstanding principal by $650 thousand at an interest rate of 15.00% on the increased commitment and outstanding principal only.
(10)	The preferred return is L+11.00% with a L+9.00% current pay and up to a capped dollar amount as PIK.
(11)	The preferred equity investment is in an entity whose assets are comprised of multifamily, student housing and medical office properties.

For the years ended December 31, 2015 and 2014, the activity in the Company's loan portfolio was as follows ($ in thousands):

Balance at December 31, 2013	$	958,495
Initial funding		637,222
Receipt of origination fees, net of costs		(7,026	)
Additional funding		80,215
Loan payoffs		(209,983	)
Origination fee accretion		3,661

Balance at December 31, 2014	$	1,462,584
Initial funding		159,348
Receipt of origination fees, net of costs5		(1,078	)
Additional funding		70,529
Amortizing payments		(601	)
Loan payoffs		(446,745	)
Loans sold to third parties(1)		(74,625	)
Origination fee accretion		4,979

Balance at December 31, 2015	$	1,174,391

(1)In July 2015, the Company sold a loan to a third party that was previously classified as held for investment. At the time of the sale, the loan had an unleveraged effective yield of 4.2% as compared to the 4.9% weighted average unleveraged effective yield for all senior loans held by the Company. No gain or loss was recognized on the sale.

No impairment charges have been recognized during the years ended December 31, 2015, 2014 and 2013.

MORTGAGE SERVICING RIGHTS

12 Months Ended

Dec. 31, 2015

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS

4. MORTGAGE SERVICING RIGHTS

MSRs represent servicing rights retained by ACRE Capital for loans it originates and sells. The servicing fees are collected from the monthly payments made by the borrowers. ACRE Capital generally receives other remuneration including rights to various loan fees such as late charges, collateral re-conveyance charges, loan prepayment penalties, and other ancillary fees. In addition, ACRE Capital is also generally entitled to retain the interest earned on funds held pending remittance related to its collection of loan principal and escrow balances. As of December 31, 2015 and 2014, the carrying value of MSRs was approximately $61.8 million and $58.9 million, respectively. As of December 31, 2015 and 2014, ACRE Capital had a servicing portfolio consisting of 973 and 976 loans, respectively, with an unpaid principal balance of $4.9 billion and $4.1 billion, respectively, which excludes ACRE's loans held for investment portfolio (see Note 14 included in these consolidated financial statements).

Activity related to MSRs as of and for the years ended December 31, 2015 and 2014 was as follows ($ in thousands):

Balance at December 31, 2013	$	59,640
MSRs acquired in asset acquisition (See Note 17)		1,259
Additions, following sale of loan		7,853
Changes in fair value		(7,650	)
Prepayments and write-offs		(2,213	)

Balance at December 31, 2014	$	58,889
MSRs purchased		549
Additions, following sale of loan		13,267
Changes in fair value		(8,798	)
Prepayments and write-offs		(2,107	)

Balance at December 31, 2015	$	61,800

As discussed in Note 2 included in these consolidated financial statements, the Company determines the fair values of the MSRs based on discounted cash flow models that calculate the present value of estimated future net servicing income. The fair values of ACRE Capital's MSRs are subject to changes in discount rates. For example, a 100 basis point increase or decrease in the weighted average discount rate would decrease or increase, respectively, the fair value of ACRE Capital's MSRs outstanding as of December 31, 2015 and 2014 by approximately $2.0 million and $1.8 million, respectively.

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References + Details

INTANGIBLE ASSETS	12 Months Ended
INTANGIBLE ASSETS	Dec. 31, 2015
INTANGIBLE ASSETS
INTANGIBLE ASSETS	5. INTANGIBLE ASSETS As of December 31, 2015 and 2014, the carrying value of the Company's intangible assets, as described in Note 2 included in these consolidated financial statements, was $6.0 million, which is included within other assets in the Company's consolidated balance sheets. On August 5, 2014, ACRE Capital was approved and granted a license by Freddie Mac as a Program Plus® Seller/Servicer for multifamily loans under which ACRE Capital is authorized to sell and service Freddie Mac loans secured by multifamily properties located in New York and Princeton, New Jersey. ACRE Capital can also sell and service Freddie Mac loans secured by multifamily properties located outside of its approved geographic area if it obtains a waiver from Freddie Mac. As a Program Plus® Seller/Servicer, ACRE Capital is approved to originate and sell to Freddie Mac multifamily loans that satisfy Freddie Mac's underwriting and other eligibility requirements. Under the program, ACRE Capital submits its completed loan underwriting package to Freddie Mac and obtains Freddie Mac's commitment to purchase the loan at a specified price after closing. Ultimately, Freddie Mac performs its own underwriting of loans that ACRE Capital sells to it. Freddie Mac may choose to hold, sell, or later securitize such loans. ACRE Capital does not have any material risk-sharing arrangements on loans it sells to Freddie Mac under Program Plus®. As of December 31, 2015, the carrying value of the Company's intangible assets of $6.0 million includes the Freddie Mac Program Plus® Seller/Servicer license with a carrying value of $1.0 million. The identified intangible assets have indefinite lives and are not subject to amortization. The Company performs an annual assessment of impairment of its intangible assets in the fourth quarter of each year or whenever events or circumstances make it more likely than not that impairment may have occurred. For the years ended December 31, 2015 and 2014, no impairment charges have been recognized.

DEBT

12 Months Ended

Dec. 31, 2015

DEBT

DEBT

6. DEBT

Financing Agreements

The Company borrows funds under the ASAP Line of Credit and the BAML Line of Credit (individually defined below and together, the "Warehouse Lines of Credit"), the Wells Fargo Facility, the Citibank Facility, the BAML Facility, the CNB Facilities, the MetLife Facility and the UBS Facilities (individually defined below and along with the Capital One Facility, collectively, the "Secured Funding Agreements"). The Company refers to the Warehouse Lines of Credit, the Secured Funding Agreements and the Secured Term Loan (defined below) as the "Financing Agreements". As of December 31, 2015 and 2014, the outstanding balances and total commitments under the Financing Agreements consisted of the following ($ in thousands):

	As of December 31,
	2015					2014
	Outstanding Balance		Total Commitment			Outstanding Balance		Total Commitment
Wells Fargo Facility	$	101,473	$	225,000		$	120,766	$	225,000
Citibank Facility		112,827		250,000			93,432		250,000
Capital One Facility		—		—	(1)		—		100,000
BAML Facility		—		50,000			—		—
March 2014 CNB Facility		—		50,000			42,000		50,000
July 2014 CNB Facility		66,200		75,000			75,000		75,000
MetLife Facility		109,474		180,000			144,673		180,000
April 2014 UBS Facility		75,558		140,000			19,685		140,000
December 2014 UBS Facility		57,243		57,243			57,243		57,243
ASAP Line of Credit		—		80,000	(2)		58,469		80,000	(2)
BAML Line of Credit		24,806		135,000	(3)		134,696		180,000	(3)
Secured Term Loan		75,000		155,000			—		—

Total	$	622,581	$	1,397,243		$	745,964	$	1,337,243

(1)The secured revolving funding facility with Capital One, National Association (as amended, the "Capital One Facility") matured on May 18, 2015. The Capital One Facility had been repaid in full and its term was not extended.

(2)The commitment amount is subject to change at any time at Fannie Mae's discretion.

(3)In November 2014, the BAML Line of Credit's (defined below) commitment size temporarily increased from $80.0 million to $180.0 million for the period November 25, 2014 through January 26, 2015. In February 2015, the BAML Line of Credit's commitment size increased from $80.0 million to $135.0 million. In April 2015, the BAML Line of Credit's commitment size temporarily increased from $135.0 million to $185.0 million for the period April 15, 2015 to June 1, 2015.

Some of the Company's Financing Agreements are collateralized by (i) assignments of specific loans, preferred equity or a pool of loans held for investment or loans held for sale owned by the Company, (ii) interests in the subordinated portion of the Company's securitizations debt, or (iii) interests in wholly owned entity subsidiaries that hold the Company's loans held for investment. The Company is the borrower or guarantor of each of the Financing Agreements (excluding the Warehouse Lines of Credit). Generally, the Company partially offsets interest rate risk by matching the interest index of loans held for investment with the Secured Funding Agreements used to fund them. The Company's Financing Agreements contain various affirmative and negative covenants and provisions regarding events of default that are normal and customary for similar financing arrangements.

Wells Fargo Facility

The Company is party to a master repurchase funding facility arranged by Wells Fargo Bank, National Association ("Wells Fargo") (as amended and restated, the "Wells Fargo Facility"), which allows the Company to borrow up to $225.0 million. In December 2014, the Company amended and restated the Wells Fargo Facility to, among other things, extend the maturity date from December 14, 2014 to December 14, 2015 and waive the non-utilization fee from December 14, 2014 through April 14, 2015. In December 2015, the Company amended and restated the Wells Fargo Facility to, among other things, extend the maturity date from December 14, 2015 to December 14, 2016. Provided that certain conditions are met and applicable extension fees are paid, the maturity date is subject to two 12-month extensions at the Company's option. Under the Wells Fargo Facility, the Company is permitted to sell, and later repurchase, certain qualifying senior commercial mortgage loans, A-Notes, pari passu participations in commercial mortgage loans and mezzanine loans under certain circumstances, subject to available collateral. Beginning on December 14, 2015, advances under the Wells Fargo Facility accrue interest at a per annum rate equal to the sum of (i) 30 day LIBOR plus (ii) a pricing margin range of 1.75% to 2.35%. Prior to December 14, 2015, advances under the Wells Fargo Facility accrue interest at a per annum rate equal to the sum of (i) 30 day LIBOR plus (ii) a pricing margin range of 2.00% to 2.50%. Subject to the waiver set forth above, the Company incurs a non-utilization fee of 25 basis points on the daily available balance of the Wells Fargo Facility to the extent less than 75% of the Wells Fargo Facility is utilized. For the years ended December 31, 2015, 2014 and 2013, the Company incurred a non-utilization fee of $195 thousand, $213 thousand and $218 thousand, respectively.

The Wells Fargo Facility contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company's subsidiaries, which are normal and customary for similar repurchase facilities, including the following: (a) limitations on the incurrence of additional indebtedness or liens, (b) limitations on how borrowed funds may be used, (c) limitations on certain distributions and dividend payments in excess of the minimum amount necessary to continue to qualify as a REIT and avoid the payment of income and excise taxes, (d) maintenance of adequate capital, (e) limitations on change of control, (f) maintaining a ratio of total debt to tangible net worth of not more than 4.00 to 1.00, (g) maintaining a ratio of recourse debt to tangible net worth of not more than 3.00 to 1.00, (h) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period to be at least 1.25 to 1.00, (i) maintaining a tangible net worth of at least the sum of (1) approximately $135.5 million, plus (2) 80% of the net proceeds raised in all future equity issuances by the Company and (j) if certain specific debt yield, loan to value or other credit based tests are not met with respect to assets on the Wells Fargo Facility, the Company may be required to repay certain amounts under the Wells Fargo Facility. As of December 31, 2015, the Company was in compliance in all material respects with the terms of the Wells Fargo Facility.

Citibank Facility

The Company is party to a $250.0 million master repurchase facility (the "Citibank Facility") with Citibank, N.A. Under the Citibank Facility, the Company is permitted to sell and later repurchase certain qualifying senior commercial mortgage loans and A-Notes approved by Citibank, N.A. in its sole discretion. Advances under the Citibank Facility accrue interest at a per annum rate equal to 30 day LIBOR plus a pricing margin of 2.00% to 2.50%, subject to certain exceptions. Under the Citibank Facility, the maturity date is December 8, 2016, subject to three 12-month extensions at the Company's option assuming no existing defaults under the Citibank Facility and applicable extension fees are paid. The Company incurs a non-utilization fee of 25 basis points on the daily available balance of the Citibank Facility. For the years ended December 31, 2015, 2014 and 2013, the Company incurred a non-utilization fee of $369 thousand, $316 thousand and $164 thousand, respectively.

The Citibank Facility contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company's subsidiaries, which are normal and customary for similar repurchase facilities, including the following: (a) maintaining tangible net worth of at least the sum of (1) 80% of the Company's tangible net worth as of September 30, 2013, plus (2) 80% of the total net capital raised in all future equity issuances by the Company, (b) maintaining liquidity in an amount not less than the greater of (1) $5.0 million or (2) 5% of the Company's recourse indebtedness, not to exceed $10.0 million (provided that in the event the Company's total liquidity equals or exceeds $5.0 million, the Company may satisfy the difference between the minimum total liquidity requirement and the Company's total liquidity with available borrowing capacity), (c) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period to be at least 1.25 to 1.00, (d) maintaining a ratio of total debt to tangible net worth of not more than 4.00 to 1.00, (e) maintaining a ratio of recourse debt to tangible net worth of not more than 3.00 to 1.00 and (f) if certain specific debt yield and loan to value tests are not met with respect to assets on the Citibank Facility, the Company may be required to repay certain amounts under the Citibank Facility. The Citibank Facility also prohibits the Company from amending the management agreement with its Manager in a material respect without the prior consent of the lender. As of December 31, 2015, the Company was in compliance in all material respects with the terms of the Citibank Facility.

BAML Facility

The Company is party to a $50.0 million Bridge Loan Warehousing Credit and Security Agreement (the "BAML Facility") with Bank of America, N.A. Under the BAML Facility, the Company may obtain advances secured by eligible commercial mortgage loans collateralized by healthcare facilities and other multifamily properties. Bank of America, N.A. may approve the loans on which advances are made under the BAML Facility in its sole discretion. The Company may request individual loans under the BAML Facility through May 26, 2016. Individual advances under the BAML Facility generally have a two-year maturity, subject to one 12-month extension at the Company's option upon the satisfaction of certain conditions and applicable extension fees being paid. The BAML Facility is fully guaranteed by the Company and a subsidiary of the Company has pledged its equity interest in the Company's subsidiary, ACRC Lender B LLC, to secure the obligations under the BAML Facility. The final maturity date of individual loans under the BAML Facility is May 26, 2019. Advances under the BAML Facility accrue interest at a per annum rate equal to one-month LIBOR plus a spread ranging from 2.25% to 2.75% depending upon the type of asset securing such advance. The BAML Facility contains mandatory prepayment events with respect to individual advances if certain specified coverage ratio or other credit based tests are not met with respect to the related eligible assets. The Company incurs a non-utilization fee of 12.5 basis points on the average daily available balance of the BAML Facility. For the year ended December 31, 2015, the Company incurred a non-utilization fee of $37 thousand. See Note 21 included in these consolidated financial statements for a subsequent event related to the BAML Facility.

The BAML Facility contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company's subsidiaries, which are normal and customary for similar financing facilities, including the following: (a) limitations on the incurrence of additional indebtedness or liens, (b) limitations on how borrowed funds may be used, (c) limitations on certain distributions and dividend payments following a default or event of default, (d) limitations on dispositions of assets and (e) prohibitions of certain change of control events. The agreements governing the BAML Facility also impose certain covenants on the Company, including the following: (i) maintaining a ratio of total debt to tangible net worth of not more than 4.00 to 1.00, (ii) maintaining a ratio of recourse debt to tangible net worth of not more than 3.00 to 1.00, (iii) maintaining a tangible net worth of at least 80% of the Company's net worth as of September 30, 2013, plus 80% of the net cash proceeds raised in equity issuances by the Company after September 30, 2013, (iv) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period of at least 1.25 to 1.00, (v) limitations on mergers, consolidations, transfers of assets and similar transactions and (vi) maintaining its status as a REIT. As of December 31, 2015, the Company was in compliance in all material respects with the terms of the BAML Facility.

City National Bank Facilities

March 2014 CNB Facility

The Company is party to a $50.0 million secured revolving funding facility with City National Bank (the "March 2014 CNB Facility"). The Company is permitted to borrow funds under the March 2014 CNB Facility to finance investments and for other working capital and general corporate needs. Advances under the March 2014 CNB Facility accrue interest at a per annum rate equal to the sum of, at the Company's option, either (a) LIBOR for a one, two, three, six or, if available to all lenders, 12-month interest period plus 3.00% or (b) a base rate (which is the highest of a prime rate, the federal funds rate plus 0.50%, or one month LIBOR plus 1.00%) plus 1.25%; provided that in no event shall the interest rate be less than 3.00%. Unless at least 75% of the March 2014 CNB Facility is used on average, unused commitments under the March 2014 CNB Facility accrue unused line fees at the rate of 0.375% per annum. For the years ended December 31, 2015 and 2014, the Company incurred a non-utilization fee of $177 thousand and $82 thousand, respectively. The initial maturity date is March 11, 2016, subject to one 12-month extension at the Company's option provided that certain conditions are met and applicable extension fees are paid. See Note 21 included in these consolidated financial statements for a subsequent event related to the March 2014 CNB Facility.

The March 2014 CNB Facility contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company's subsidiaries, which are normal and customary for similar financing facilities, including the following: (a) limitations on the incurrence of additional indebtedness or liens, (b) limitations on how borrowed funds may be used, (c) limitations on certain distributions and dividend payments following a default or event of default, (d) limitations on dispositions of assets, (e) maintenance of minimum total asset value by the borrower under the March 2014 CNB Facility and its subsidiaries, and (f) prohibitions of certain change of control events. The agreements governing the March 2014 CNB Facility also impose certain covenants on the Company, including the following: (i) maintaining a ratio of total debt to tangible net worth of not more than 4.00 to 1.00, (ii) maintaining a ratio of recourse debt to tangible net worth of not more than 3.00 to 1.00, (iii) maintaining a tangible net worth of at least 80% of the Company's net worth as of September 30, 2013, plus 80% of the net cash proceeds raised in equity issuances by the Company after March 12, 2014, (iv) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period of at least 1.25 to 1.00, (v) limitations on mergers, consolidations, transfers of assets and similar transactions, and (vi) maintaining its status as a REIT. As of December 31, 2015, the Company was in compliance in all material respects with the terms of the March 2014 CNB Facility.

July 2014 CNB Facility

The Company and certain of its subsidiaries are party to a $75.0 million revolving funding facility (the "July 2014 CNB Facility" and together with the March 2014 CNB Facility, the "CNB Facilities") with City National Bank. The Company is permitted to borrow funds under the July 2014 CNB Facility to finance investments and for other working capital and general corporate needs. Advances under the July 2014 CNB Facility accrue interest at a per annum rate equal, at the Company's option, to either (a) LIBOR for a one, two, three, six or, if available to all lenders, 12-month interest period plus 1.50% or (b) a base rate (which is the highest of a prime rate, the federal funds rate plus 0.50%, or one month LIBOR plus 1.00%) plus 0.25%; provided that in no event shall the interest rate be less than 1.50%. Unless at least 75% of the July 2014 CNB Facility is used on average, unused commitments under the July 2014 CNB Facility accrue unused line fees at the rate of 0.125% per annum. For the years ended December 31, 2015 and 2014, the Company incurred a non-utilization fee of $4 thousand and $15 thousand, respectively. In July 2015, the Company exercised a 12-month extension option to extend the maturity date to July 31, 2016. See Note 14 included in these consolidated financial statements for more information on a credit support fee agreement with respect to the July 2014 CNB Facility.

The July 2014 CNB Facility contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company's subsidiaries, which are normal and customary for similar financing facilities, including the following: (a) limitations on the incurrence of additional indebtedness or liens, (b) limitations on how borrowed funds may be used, (c) limitations on certain distributions and dividend payments following a default or event of default, (d) limitations on dispositions of assets, (e) maintenance of minimum total asset value by the borrower under the July 2014 CNB Facility and its subsidiaries and (f) prohibitions of certain change of control events. The agreements governing the July 2014 CNB Facility also impose certain covenants on the Company, including the following: (i) maintaining a ratio of total debt to tangible net worth of not more than 4.00 to 1.00, (ii) maintaining a ratio of recourse debt to tangible net worth of not more than 3.00 to 1.00, (iii) maintaining a tangible net worth of at least 80% of the Company's net worth as of September 30, 2013, plus 80% of the net cash proceeds raised in equity issuances by the Company after July 30, 2014, (iv) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period of at least 1.25 to 1.00, (v) limitations on mergers, consolidations, transfers of assets and similar transactions and (vi) maintaining its status as a REIT. As of December 31, 2015, the Company was in compliance in all material respects with the terms of the July 2014 CNB Facility.

MetLife Facility

The Company and certain of its subsidiaries are party to a $180.0 million revolving master repurchase facility (the "MetLife Facility") with Metropolitan Life Insurance Company ("MetLife"), pursuant to which the Company may sell, and later repurchase, commercial mortgage loans meeting defined eligibility criteria which are approved by MetLife in its sole discretion. Advances under the MetLife Facility accrue interest at a per annum rate of 30 day LIBOR plus 2.35%. The Company will pay MetLife, if applicable, an annual make-whole fee equal to the amount by which the aggregate price differential paid over the term of the MetLife Facility is less than the defined minimum price differential, unless certain conditions are met. The initial maturity date of the MetLife Facility is August 12, 2017, subject to two 12-month extensions at the Company's option provided that certain conditions are met and applicable extension fees are paid.

The MetLife Facility contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company's subsidiaries, which are normal and customary for similar repurchase facilities, including the following: (a) limitations on the incurrence of additional indebtedness or liens, (b) limitations on how borrowed funds may be used, (c) limitations on certain distributions and dividend payments following a default or event of default, and (d) limitations on dispositions of assets. The agreements governing the MetLife Facility also impose certain covenants on the Company, including the following: (i) maintaining a ratio of total debt to tangible net worth of not more than 4.00 to 1.00, (ii) maintaining a ratio of recourse debt to tangible net worth of not more than 3.00 to 1.00, (iii) maintaining a tangible net worth of at least 80% of the Company's net worth as of September 30, 2013, plus 80% of the net cash proceeds raised in equity issuances by the Company after August 13, 2014, (iv) maintaining a fixed charge coverage ratio (expressed as the ratio of EBITDA (net income before net interest expense, income tax expense, depreciation and amortization), as defined, to fixed charges) for the immediately preceding 12-month period ending on the last date of the applicable reporting period of at least 1.25 to 1.00, and (v) if certain specific debt yield, loan to value or other credit based tests are not met with respect to assets on the MetLife Facility, the Company may be required to repay certain amounts under the MetLife Facility. As of December 31, 2015, the Company was in compliance in all material respects with the terms of the MetLife Facility.

UBS Facilities

April 2014 UBS Facility

The Company is party to a $140.0 million revolving master repurchase facility (the "April 2014 UBS Facility") with UBS Real Estate Securities Inc. ("UBS"), pursuant to which the Company may sell, and later repurchase, commercial mortgage loans and, under certain circumstances, other assets meeting defined eligibility criteria that are approved by UBS in its sole discretion. Since October 21, 2015, the price differential (or interest rate) on the April 2014 UBS Facility is one-month LIBOR plus (a) 1.88% per annum, for assets that are subject to an advance for one year or less, (b) 2.08% per annum, for assets that are subject to an advance in excess of one year but less than two years; and (c) 2.28% per annum, for assets that are subject to an advance for greater than two years; in each case, excluding amortization of commitment and exit fees. Prior to October 21, 2015, the price differential (or interest rate) on the April 2014 UBS Facility was one-month LIBOR plus 1.88%. In October 2015, the Company entered into an amendment to extend the initial maturity date to October 21, 2018. The initial maturity date is subject to annual extensions in UBS' sole discretion. Upon termination of the April 2014 UBS Facility, the Company will pay UBS, if applicable, the amount by which the aggregate price differential paid over the term of the April 2014 UBS Facility is less than the defined minimum price differential and an exit fee, in each case, unless certain conditions are met.

The April 2014 UBS Facility contains margin call provisions that provide UBS with certain rights if the applicable percentage of the aggregate asset value of the purchased assets under the April 2014 UBS Facility is less than the aggregate purchase price for such assets. The April 2014 UBS Facility is fully guaranteed by the Company and requires the Company to maintain certain financial and other covenants including the following: (a) maintaining a ratio of (i) recourse debt to tangible net worth of not more than 3.00 to 1.00 and (ii) total debt to tangible net worth of not more than 4.00 to 1.00, (b) maintaining a tangible net worth of at least 80% of the Company's net worth as of September 30, 2013, plus 80% of net cash proceeds received from all subsequent equity issuances by the Company, and (c) maintaining a fixed charge coverage ratio (expressed as the ratio of adjusted-EBITDA (net income before net interest expense, income tax expense, depreciation and amortization) to fixed charges) for the immediately preceding 12-month period ending on the last day of the applicable reporting period of at least 1.25 to 1.00. In addition, the April 2014 UBS Facility contains certain affirmative and negative covenants and provisions regarding events of default that are normal and customary for similar repurchase facilities. As of December 31, 2015, the Company was in compliance in all material respects with the terms of the April 2014 UBS Facility.

December 2014 UBS Facility

The Company is party to a global master repurchase agreement (the "December 2014 UBS Facility," and together with the April 2014 UBS Facility, the "UBS Facilities") with UBS AG, pursuant to which the Company will sell, and later repurchase, certain retained subordinate notes in the Company's commercial mortgage-backed securities ("CMBS") securitization (the "Purchased Securities") for an aggregate purchase price equal to $57.2 million. In August 2015, the Company extended the scheduled repurchase date of the December 2014 UBS Facility to July 6, 2016 (the "Repurchase Date"). The transaction fee (or interest rate), which is payable monthly on the December 2014 UBS Facility, is equal to one-month LIBOR plus 2.74% per annum on the outstanding amount. The Purchased Securities may be purchased by the Company in whole, but not in part, prior to the Repurchase Date. If the outstanding amount of the Purchased Securities subject to the December 2014 UBS Facility is reduced or repaid prior to the Repurchase Date, UBS AG shall be entitled to a termination fee.

The December 2014 UBS Facility also contains margin call provisions that provide UBS AG with certain rights if the applicable percentage of the aggregate asset value of the Purchased Securities is less than the aggregate purchase price for such Purchased Securities. The December 2014 UBS Facility is fully guaranteed by the Company and requires the Company to maintain certain financial and other covenants including the following: (a) maintaining a ratio of (i) recourse debt to tangible net worth of not more than 3.00 to 1.00 and (ii) total debt to tangible net worth of not more than 4.00 to 1.00, (b) maintaining a tangible net worth of at least 80% of the Company's net worth as of September 30, 2013, plus 80% of net cash proceeds received from all subsequent equity issuances by the Company, and (c) maintaining a fixed charge coverage ratio (expressed as the ratio of adjusted-EBITDA (net income before net interest expense, income tax expense, depreciation and amortization) to fixed charges) for the immediately preceding 12-month period ending on the last day of the applicable reporting period of at least 1.25 to 1.00. In addition, the December 2014 UBS Facility contains certain affirmative and negative covenants and provisions regarding events of default that are normal and customary for similar repurchase facilities. As of December 31, 2015, the Company was in compliance in all material respects with the terms of the December 2014 UBS Facility.

Warehouse Lines of Credit

ASAP Line of Credit

ACRE Capital is party to a multifamily as soon as pooled ("ASAP") sale agreement with Fannie Mae (the "ASAP Line of Credit") to finance installments received from Fannie Mae. To the extent the ASAP Line of Credit remains active through utilization, there is no expiration date. The commitment amount is subject to change at any time at Fannie Mae's discretion. Fannie Mae advances payment to ACRE Capital in two separate installments according to the terms as set forth in the ASAP sale agreement. The first installment is considered an advance to ACRE Capital from Fannie Mae and not a sale until the second advance and settlement is made.

BAML Line of Credit

In November 2014, ACRE Capital amended its line of credit with Bank of America, N.A. (as amended and restated, the "BAML Line of Credit") to, among other things, temporarily increase the size of the commitment from $80.0 million to $180.0 million for the period November 25, 2014 through January 26, 2015. In February 2015, ACRE Capital amended the BAML Line of Credit to, among other things, increase the size of the commitment from $80.0 million to $135.0 million and extend the maturity date to June 30, 2016. In April 2015, the agreement governing the BAML Line of Credit was amended to, among other things, temporarily increase the commitment size from $135.0 million to $185.0 million for the period April 15, 2015 to June 1, 2015. The stated interest rate on the BAML Line of Credit is LIBOR Daily Floating Rate plus 1.60%. ACRE Capital incurs a non-utilization fee of 12.5 basis points on the daily available balance of the BAML Line of Credit to the extent less than 40% of the BAML Line of Credit is utilized. For the years ended December 31, 2015, 2014 and 2013, the Company incurred a non-utilization fee of $76 thousand, $84 thousand and $26 thousand, respectively.

The BAML Line of Credit is collateralized by a first lien on ACRE Capital's interest in the mortgage loans that it originates. Advances from the BAML Line of Credit cannot exceed 100% of the principal amounts of the mortgage loans originated by ACRE Capital and must be repaid at the earlier of the sale or other disposition of the mortgage loans or at the expiration date of the BAML Line of Credit. The BAML Line of Credit contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company's subsidiaries, which are normal and customary for similar financing facilities, including a minimum tangible net worth requirement. As of December 31, 2015, ACRE Capital was in compliance in all material respects with the terms of the BAML Line of Credit.

Secured Term Loan

In December 2015, the Company and certain of its subsidiaries entered into a $155.0 million Credit and Guaranty Agreement (the "Secured Term Loan") with Highbridge Principal Strategies, LLC, as administrative agent, and DBD Credit Funding LLC, as collateral agent. The Company made an initial draw of $75.0 million at closing. The remaining $80.0 million of the Secured Term Loan may be borrowed during the nine month commitment period following the closing date, subject to the satisfaction of certain conditions. The Secured Term Loan carries a coupon of LIBOR + 6.0% with a LIBOR floor of 1.0% on drawn amounts. The Secured Term Loan has a maturity date of December 9, 2018. The Company is subject to a monthly unused fee equal to 1.0% per annum on the unused commitment amount during the nine month commitment period following the closing date. For the year ended December 31, 2015, the Company incurred a non-utilization fee of $51 thousand. The original issue discount on the initial draw was $1.1 million, which represented a discount to the debt cost to be amortized into interest expense using the effective interest method over the term of the Secured Term Loan. The estimated effective interest rate of the Secured Term Loan, which is equal to LIBOR (subject to a floor of 1.0%) plus the stated rate of 6.0% plus the accretion of the original issue discount and associated costs, was 8.4% for the year ended December 31, 2015.

The Company's obligations under the Secured Term Loan are guaranteed by certain subsidiaries of the Company. Certain subsidiaries of the Company entered into a Pledge and Security Agreement with the collateral agent under the Secured Term Loan, pursuant to which the obligations of the Company and the subsidiary guarantors under the Secured Term Loan are each secured by equity interests in certain of the Company's indirect subsidiaries and other assets. In addition, the Company and certain of its subsidiaries entered into a Negative Pledge Agreement with the collateral agent under the Secured Term Loan, which prohibits pledging or otherwise encumbering, subject to permitted encumbrances, certain of the assets which were not subject to the Pledge and Security Agreement.

The Secured Term Loan contains various affirmative and negative covenants and provisions regarding events of default that are applicable to the Company and certain of the Company's subsidiaries, which are normal and customary for similar financing agreements, including the following: (a) limitations on the incurrence of additional indebtedness or liens, (b) limitations on how borrowed funds may be used, (c) limitations on certain distributions and dividend payments following a default or event of default, (d) limitations on dispositions of assets and (e) prohibitions of certain change of control events. The agreements governing the Secured Term Loan also impose certain covenants on the Company, including the following: (i) maintaining a ratio of total debt to tangible net worth of not more than 4.00 to 1.00, (ii) maintaining a tangible net worth of at least 80% of the Company's net worth as of September 30, 2015, plus 80% of the net cash proceeds raised in subsequent equity issuances by the Company, (iii) maintaining an asset coverage ratio greater than 110%, (iv) maintaining an unencumbered asset ratio greater than 120%, (v) limitations on mergers, consolidations, transfers of assets and similar transactions, (vi) maintaining its status as a REIT and (vii) maintaining at least 65.0% of loans held for investment as senior commercial real estate loans, as measured by the average daily outstanding principal balance of all loans held for investment during a fiscal quarter and as adjusted for non-controlling interests. As of December 31, 2015, the Company was in compliance in all material respects with the terms of the Secured Term Loan.

2015 Convertible Notes

In December 2012, the Company issued $69.0 million aggregate principal amount of the 2015 Convertible Notes. Of this aggregate principal amount, $60.5 million aggregate principal amount of the 2015 Convertible Notes was sold to the initial purchasers (including $9.0 million pursuant to the initial purchasers' exercise in full of their overallotment option) and $8.5 million aggregate principal amount of the 2015 Convertible Notes was sold directly to certain directors, officers and affiliates of the Company in a private placement. The 2015 Convertible Notes were issued pursuant to an Indenture, dated December 19, 2012 (the "Indenture"), between the Company and U.S. Bank National Association, as trustee. The sale of the 2015 Convertible Notes generated net proceeds of approximately $66.2 million. Aggregate estimated offering expenses in connection with the transaction, including the initial purchasers' discount of approximately $2.1 million, were approximately $2.8 million. In December 2015, the Company repaid the entire aggregate principal amount outstanding of its 2015 Convertible Notes in accordance with the terms of the Indenture governing the 2015 Convertible Notes. The 2015 Convertible Notes matured on December 15, 2015 and were repaid at par. As of December 31, 2014, the carrying value of the 2015 Convertible Notes was $67.4 million.

The 2015 Convertible Notes bore interest at a rate of 7.00% per year, payable semiannually in arrears on June 15 and December 15 of each year, beginning on June 15, 2013. The estimated effective interest rate of the 2015 Convertible Notes, which was equal to the stated rate of 7.00% plus the accretion of the original issue discount and associated costs, was 9.4% prior to redemption and for the year ended December 31, 2014. For the years ended December 31, 2015, 2014 and 2013, the interest expense incurred on this indebtedness was $6.2 million, $6.3 million and $6.2 million, respectively.

Prior to June 26, 2013, the Company could not elect to issue shares of common stock upon conversion of the 2015 Convertible Notes to the extent such election would result in the issuance of 20% or more of the common stock outstanding immediately prior to the issuance of the 2015 Convertible Notes until the Company received stockholder approval for issuances above this threshold. Until such stockholder approval was obtained, the Company could not share-settle the full conversion option. As a result, the embedded conversion option did not qualify for equity classification and instead was separately valued and accounted for as a derivative liability. The initial value allocated to the derivative liability was $1.7 million, which represented a discount to the debt cost to be amortized through interest expense using the effective interest method through the maturity of the 2015 Convertible Notes. The effective interest rate used to amortize the debt discount on the 2015 Convertible Notes was 9.4%. During each reporting period, the derivative liability was marked to fair value through earnings.

On June 26, 2013, stockholder approval was obtained for the issuance of shares in excess of 20% of the Company's common stock outstanding to satisfy any conversions of the 2015 Convertible Notes. As a result, the Company had the ability to fully settle in shares the conversion option and the embedded conversion option was no longer required to be separately valued and accounted for as a derivative liability on a prospective basis. As of June 26, 2013, the conversion option's cumulative value of $86 thousand was reclassified to additional paid-in capital and was no longer marked-to-market through earnings. The remaining debt discount of $1.5 million as of June 26, 2013, which arose at the date of debt issuance from the original bifurcation, continued to be amortized through interest expense.

At December 31, 2015, approximate principal maturities of the Company's Financing Agreements are as follows ($ in thousands):

	Wells Fargo Facility		Citibank Facility		BAML Facility		March 2014 CNB Facility		July 2014 CNB Facility		MetLife Facility		April 2014 UBS Facility		December 2014 UBS Facility		Secured Term Loan		ASAP Line of Credit		BAML Line of Credit		Total
2016	$	101,473	$	112,827	$	—	$	—	$	66,200	$	—	$	—	$	57,243	$	—	$	—	$	24,806	$	362,549
2017		—		—		—		—		—		109,474		—		—		—		—		—		109,474
2018		—		—		—		—		—		—		75,558		—		75,000		—		—		150,558
2019		—		—		—		—		—		—		—		—		—		—		—		—
2020		—		—		—		—		—		—		—		—		—		—		—		—
Thereafter		—		—		—		—		—		—		—		—		—		—		—		—

	$	101,473	$	112,827	$	—	$	—	$	66,200	$	109,474	$	75,558	$	57,243	$	75,000	$	—	$	24,806	$	622,581

ALLOWANCE FOR LOSS SHARING

12 Months Ended

Dec. 31, 2015

ALLOWANCE FOR LOSS SHARING

ALLOWANCE FOR LOSS SHARING

7. ALLOWANCE FOR LOSS SHARING

Loans originated and sold by ACRE Capital to Fannie Mae under the Fannie Mae DUS program are subject to the terms and conditions of a Master Loss Sharing Agreement, which was amended and restated during 2012. Under the Master Loss Sharing Agreement, ACRE Capital is responsible for absorbing certain losses incurred by Fannie Mae with respect to loans originated under the DUS program, as described below in more detail. The compensation for this risk of loss is a component of servicing fees on the loan.

The losses incurred with respect to individual loans are allocated between ACRE Capital and Fannie Mae based on the loss level designation ("Loss Level") for the particular loan. Loans are designated as Loss Level I, Loss Level II or Loss Level III. All loans are designated Loss Level I unless Fannie Mae and ACRE Capital agree upon a different Loss Level for a particular loan at the time of the loan commitment, or if Fannie Mae determines that the loan was not underwritten, processed or serviced according to Fannie Mae guidelines.

Losses on Loss Level I loans are shared 33.33% by ACRE Capital and 66.67% by Fannie Mae. The maximum amount of ACRE Capital's risk-sharing obligation with respect to any Loss Level I loan is 33.33% of the original principal amount of the loan. Losses incurred in connection with Loss Level II and Loss Level III loans are allocated disproportionately to ACRE Capital until ACRE Capital has absorbed the maximum level of its risk-sharing obligation with respect to the particular loan. The maximum loss allocable to ACRE Capital for Loss Level II loans is 30% of the original principal amount of the loan, and for Loss Level III loans is 40% of the original principal amount of the loan.

According to the Master Loss Sharing Agreement, Fannie Mae may unilaterally increase the amount of the risk-sharing obligation of ACRE Capital with respect to individual loans without regard to a particular Loss Level if (a) the loan does not meet specific underwriting criteria, (b) the loan is defaulted within twelve (12) months after it is purchased by Fannie Mae, or (c) Fannie Mae determines that there was fraud, material misrepresentation or gross negligence by ACRE Capital in its underwriting, closing, delivery or servicing of the loan. Under certain limited circumstances, Fannie Mae may require ACRE Capital to absorb 100% of the losses incurred on a loan by requiring ACRE Capital to repurchase the loan.

The amount of loss incurred on a particular loan is determined at the time the loss is incurred, for example, at the time a property is foreclosed by Fannie Mae (whether acquired by Fannie Mae or a third party) or at the time a loan is modified in connection with a default. Losses may be determined by reference to the price paid by a third party at a foreclosure sale or by reference to an appraisal obtained by Fannie Mae in connection with the default on the loan.

In connection with the Company's acquisition of ACRE Capital, Alliant, Inc., a Florida corporation, and The Alliant Company, LLC, a Florida limited liability company (the "Sellers"), are jointly and severally obligated to fund directly (if permitted) or to reimburse ACRE Capital for amounts due and owing after the closing date to Fannie Mae pursuant to ACRE Capital's allowance for loss sharing with respect to settlement of certain DUS program mortgage loans originated and serviced by ACRE Capital, subject to certain limitations. In addition, the Sellers are jointly and severally obligated to indemnify ACRE Capital for, among other things, certain losses arising from Sellers' failure to fulfill the funding or reimbursement obligations described above. As of December 31, 2015 and 2014, the preliminary estimate of the portion of such contributions towards such losses relating to the allowance for loss sharing of ACRE Capital is $377 thousand and $494 thousand, respectively, and is included within other assets in the consolidated balance sheets. Additionally, with respect to the settlement of certain non-designated DUS program mortgage loans originated and serviced by ACRE Capital, the Sellers are jointly and severally obligated to fund directly (if permitted) or to reimburse ACRE Capital in each of the three 12 month periods following the closing date for eighty percent (80%) of amounts due and owing after the closing date to Fannie Mae pursuant to ACRE Capital's allowance for loss sharing in excess of $2.0 million during such 12 month period; provided that in no event shall Sellers obligations exceed in the aggregate $3.0 million for the entire three year period.

ACRE Capital uses several tools to manage its risk-sharing obligation, including maintenance of disciplined underwriting and approval processes and procedures, and periodic review and evaluation of underwriting criteria based on underlying multifamily housing market data and limitation of exposure to particular geographic markets and submarkets and to individual borrowers. In situations where payment under the guarantee is probable and estimable on a specific loan, the Company records an additional liability through a charge to the provision for loss sharing in the consolidated statements of operations. The amount of the provision reflects the Company's assessment of the likelihood of payment by the borrower, the estimated disposition value of the underlying collateral and the level of risk-sharing. Historically, among other factors, the loss recognition occurs at or before the loan becoming 60 days delinquent.

A summary of the Company's allowance for loss sharing for the years ended December 31, 2015 and 2014 is as follows ($ in thousands):

Balance at December 31, 2013	$	16,480
Current period provision for loss sharing		(1,364	)
Settlements/Writeoffs		(2,767	)

Balance at December 31, 2014	$	12,349
Current period provision for loss sharing		(1,093	)
Settlements/Writeoffs		(2,287	)

Balance at December 31, 2015	$	8,969

As of December 31, 2015 and 2014, the maximum quantifiable allowance for loss sharing associated with the Company's guarantees under the Fannie Mae DUS agreement was $1.1 billion from a total recourse at risk pool of $3.2 billion. Additionally, as of December 31, 2015 and 2014, the non-at risk pool was $855 thousand and $2.0 million, respectively. The at risk pool is subject to Fannie Mae's Master Loss Sharing Agreement and the non-at risk pool is not subject to such agreement. The maximum quantifiable allowance for loss sharing is not representative of the actual loss the Company would incur. The Company would be liable for this amount only if all of the loans it services for Fannie Mae, for which the Company retains some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2015

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

8. COMMITMENTS AND CONTINGENCIES

As of December 31, 2015 and 2014, the Company had the following commitments to fund various senior mortgage loans, subordinated debt investments, as well as preferred equity investments accounted for as loans held for investment ($ in thousands):

	As of December 31,
	2015			2014
Total commitments	$	1,232,163		$	1,565,117
Less: funded commitments		(1,133,842	)		(1,395,281	)

Total unfunded commitments	$	98,321		$	169,836

Commitments to extend credit by ACRE Capital are generally agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Occasionally, the commitments may expire without being drawn upon; therefore, the total commitment amounts do not necessarily represent future cash requirements. As of December 31, 2015 and 2014, ACRE Capital had the following commitments to sell and fund loans ($ in thousands):

	As of December 31,
	2015		2014
Commitments to sell loans	$	237,372	$	249,803
Commitments to fund loans	$	207,566	$	51,109

Lease Commitments

ACRE Capital is obligated under a number of operating leases for office spaces with terms ranging from less than one year to more than five years. Rent expense for the years ended December 31, 2015, 2014 and 2013 was $844 thousand, $983 thousand and $230 thousand, respectively.

The following table shows future minimum payments required under the Company's operating leases as of December 31, 2015 ($ in thousands):

	As of December 31, 2015
2016	$	775
2017		853
2018		837
2019		772
2020		754
Thereafter		1,026

Total	$	5,017

The Company from time to time may be party to litigation relating to claims arising in the normal course of business. As of December 31, 2015, the Company is not aware of any legal claims that could materially impact its business, financial condition or results of operations.

DERIVATIVES

12 Months Ended

Dec. 31, 2015

DERIVATIVES

DERIVATIVES

9. DERIVATIVES

Non-designated Hedges

Derivatives not designated as hedges are derivatives that do not meet the criteria for hedge accounting under GAAP or for which the Company has not elected to designate as hedges. Changes in the fair value of derivatives related to the loan commitments and forward sale commitments are recorded directly in gains from mortgage banking activities in the consolidated statements of operations.

Loan commitments and forward sale commitments

Through its subsidiary, ACRE Capital, the Company enters into loan commitments with borrowers on loan originations whereby the interest rate on the prospective loan is determined prior to funding. In general, ACRE Capital simultaneously enters into forward sale commitments with investors in order to hedge against the interest rate exposure on loan commitments. The forward sale commitment with the investor locks in an interest rate and price for the sale of the loan. The terms of the loan commitment with the borrower and the forward sale commitment with the investor are matched with the objective of hedging interest rate risk. Loan commitments and forward sale commitments are considered undesignated derivative instruments. Accordingly, such commitments, along with any related fees received from potential borrowers, are recorded at fair value, with changes in fair value recorded in earnings. For the year ended December 31, 2015, the Company entered into 87 loan commitments and 87 forward sale commitments. For the year ended December 31, 2014, the Company entered into 36 loan commitments and 36 forward sale commitments.

As of December 31, 2015, the Company had 16 loan commitments with a total notional amount of $207.6 million and 24 forward sale commitments with a total notional amount of $237.4 million, with maturities ranging from 25 days to 17 months that were not designated as hedges in qualifying hedging relationships. As of December 31, 2014, the Company had one loan commitment with a total notional amount of $51.1 million and ten forward sale commitments with a total notional amount of $249.8 million, with maturities ranging from nine days to 23 months that were not designated as hedges in qualifying hedging relationships.

MSR purchase commitments

In March 2015, ACRE Capital entered into a MSR purchase agreement with a third party to purchase the servicing rights for a HUD loan. Under the purchase agreement, the purchase price for the servicing rights was $500 thousand and ACRE Capital assumed the rights to service the loan in October 2015. In July 2015, ACRE Capital entered into a second purchase agreement with a third party to purchase the servicing rights for a HUD loan (the "July 2015 HUD Loan"). Under the second purchase agreement, the purchase price for the servicing rights was $325 thousand and ACRE Capital will assume the rights to service the loan in March 2016. The derivative asset associated with the rights to service the loan related to the July 2015 HUD Loan is included within other assets in the consolidated balance sheets as of December 31, 2015.

Embedded conversion option

In connection with the issuance of the 2015 Convertible Notes, the Company could not elect to issue shares of common stock upon conversion of the 2015 Convertible Notes to the extent such election would result in the issuance of 20% or more of the common stock outstanding immediately prior to the issuance of the 2015 Convertible Notes until the Company received stockholder approval for issuances above this threshold. As a result, the embedded conversion option did not qualify for equity classification and instead was separately valued and accounted for as a derivative liability. On June 26, 2013, stockholder approval was obtained for the issuance of shares in excess of 20% of the Company's common stock outstanding to satisfy any conversions of the 2015 Convertible Notes. As a result, the Company had the ability to fully settle in shares the conversion option and the embedded conversion option was no longer required to be separately valued and accounted for as a derivative liability on a prospective basis. As of December 31, 2015 and 2014, there was no derivative liability.

The table below presents the fair value of the Company's derivative financial instruments as well as their classification within the Company's consolidated balance sheets as of December 31, 2015 and 2014 ($ in thousands):

	As of December 31,
	2015				2014
	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Derivatives not designated as hedging instruments
Loan commitments	Other assets	$	8,450		Other assets	$	3,082
Forward sale commitments	Other assets		25		Other assets		116
MSR purchase commitment	Other assets		330		Other assets		—
Forward sale commitments	Other liabilities		(1,868	)	Other liabilities		(1,528	)

Total derivatives not designated as hedging instruments		$	6,937			$	1,670

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

EQUITY

12 Months Ended

Dec. 31, 2015

EQUITY

EQUITY

10. EQUITY

The following table summarizes the total shares issued and proceeds received in public offerings of the Company's common stock net of offering costs for the year ended December 31, 2013 (in millions, except per share data):

	Shares Issued			Offering Price Per Share		Proceeds Net Of Offering Costs
2013
July 2013		601,590	(1)	$	13.50	$	7.7
June 2013		18,000,000			13.50		234.6

Total for the year ended December 31, 2013		18,601,590				$	242.3

(1)The Company granted the underwriters an option to purchase up to an additional 2.7 million shares of common stock. This amount represents the partial exercise of the option to purchase additional shares by the underwriters.

The net proceeds were used to invest in target investments, repay indebtedness, fund future funding commitments on existing loans and for other general corporate purposes. There were no shares issued in public or private offerings for the years ended December 31, 2015 and 2014.

See Note 17 included in these consolidated financial statements for information regarding shares of the Company's common stock issued in a private placement.

Equity Incentive Plan

On April 23, 2012, the Company adopted an equity incentive plan (the "2012 Equity Incentive Plan"). Pursuant to the 2012 Equity Incentive Plan, the Company may grant awards consisting of restricted shares of the Company's common stock, restricted stock units and/or other equity-based awards to the Company's outside directors, employees, officers, ACREM and other eligible awardees under the plan, subject to an aggregate limitation of 690,000 shares of common stock (7.5% of the issued and outstanding shares of the Company's common stock immediately after giving effect to the issuance of the shares sold in the IPO). Any restricted shares of the Company's common stock and restricted stock units will be accounted for under FASB ASC Topic 718, Compensation—Stock Compensation, resulting in share-based compensation expense equal to the grant date fair value of the underlying restricted shares of common stock or restricted stock units.

Restricted stock grants generally vest ratably over a one to four year period from the vesting start date. The grantee receives additional compensation for each outstanding restricted stock grant, classified as dividends paid, equal to the per-share dividends received by common stockholders.

During the year ended December 31, 2014, an ACRE Capital employee was granted restricted stock that vests in proportion to certain financial performance targets being met over a specified period of time. The fair value of the performance based restricted stock granted is recorded to expense on an accelerated basis using the accelerated attribution method over the performance period for the award, with an offsetting increase in stockholders' equity.

The following table details the restricted stock grants awarded as of December 31, 2015:

Grant Date	Vesting Start Date	Shares Granted
May 1, 2012	July 1, 2012		35,135
June 18, 2012	July 1, 2012		7,027
July 9, 2012	October 1, 2012		25,000
June 26, 2013	July 1, 2013		22,526
November 25, 2013	November 25, 2016		30,381
January 31, 2014	August 31, 2015		48,273
February 26, 2014	February 26, 2014		12,030
February 27, 2014	August 27, 2014		22,354
June 24, 2014	June 24, 2014		17,658
June 24, 2015	July 1, 2015		25,555

Total			245,939

The following tables summarize the non-vested shares of restricted stock and the vesting schedule of shares of restricted stock for the Company's directors and officers and employees of ACRE Capital as of December 31, 2015.

Schedule of Non-Vested Share and Share Equivalents

	Restricted Stock Grants—Directors			Restricted Stock Grants—Officer			Restricted Stock Grants—Employees			Total
Balance as of December 31, 2014		21,324			10,936			78,654			110,914
Granted		25,555			—			—			25,555
Vested		(27,114	)		(6,250	)		(16,091	)		(49,455	)
Forfeited		(2,820	)		—			—			(2,820	)

Balance as of December 31, 2015		16,945			4,686			62,563			84,194

Future Anticipated Vesting Schedule

	Restricted Stock Grants—Directors		Restricted Stock Grants—Officer		Restricted Stock Grants—Employees(1)		Total
2016		16,111		4,686		30,381		51,178
2017		834		—		—		834
2018		—		—		—		—
2019		—		—		—		—
2020		—		—		—		—

Total		16,945		4,686		30,381		52,012

(1)Future anticipated vesting related to an employee of ACRE Capital that was granted restricted stock that vests in proportion to certain financial performance targets being met over a specified period of time is not included due to uncertainty in actual vesting date.

The following table summarizes the restricted stock compensation expense included in general and administrative expenses for ACRE and compensation and benefits for ACRE Capital, the total fair value of shares vested and the weighted average grant date fair value of the restricted stock granted to the Company's directors and officers and employees of ACRE Capital for the years ended December 31, 2015, 2014 and 2013 ($ in thousands):

	For the year ended December 31,
	2015								2014								2013
	Restricted Stock Grants								Restricted Stock Grants								Restricted Stock Grants
	Directors		Officer		Employees		Total		Directors		Officer		Employees		Total		Directors		Officer		Employees		Total
Compensation expense	$	330	$	106	$	399	$	835	$	445	$	106	$	388	$	939	$	408	$	106	$	10	$	524
Total fair value of shares vested(1)		313		72		201		586		399		79		56		534		366		92		—		458
Weighted average grant date fair value		299		—		—		299		385		—		944		1,329		289		—		398		687


(1)	Based on the closing price of the Company's common stock on the NYSE on each vesting date.

As of December 31, 2015 and 2014, the total compensation cost related to non-vested awards not yet recognized totaled $494 thousand and $1.1 million, respectively, and the weighted-average period over which the non-vested awards are expected to be recognized is 1.59 years and 2.60 years, respectively.

Non-Controlling Interests

The non-controlling interests held by third parties in the Company's consolidated balance sheets represent the equity interests in a limited liability company, ACRC KA Investor LLC ("ACRC KA") that are not owned by the Company. A portion of ACRC KA's consolidated equity and net income are allocated to these non-controlling interests held by third parties based on their pro-rata ownership of ACRC KA. As of December 31, 2015, ACRC KA's total equity was $96.0 million, of which $49.0 million was owned by the Company and $47.0 million was allocated to non-controlling interests held by third parties. As of December 31, 2014, ACRC KA's total equity was $170.7 million, of which $92.8 million was owned by the Company and $77.9 million was allocated to non-controlling interests held by third parties. See Note 16 included in these consolidated financial statements for more information on ACRC KA.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 505
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 505
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-Subparagraph (SAB TOPIC 4.C)
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 6
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

+ Details

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2015

EARNINGS PER SHARE

EARNINGS PER SHARE

11. EARNINGS PER SHARE

The following information sets forth the computations of basic and diluted earnings per common share for the years ended December 31, 2015, 2014 and 2013 ($ in thousands, except share and per share data):

	For the year ended December 31,
	2015		2014		2013
Net income attributable to common stockholders:	$	34,285	$	24,396	$	13,766
Divided by:
Basic weighted average shares of common stock outstanding:		28,501,897		28,459,309		18,989,500
Non-vested restricted stock		95,671		125,713		48,652

Diluted weighted average shares of common stock outstanding:		28,597,568		28,585,022		19,038,152

Basic earnings per common share:	$	1.20	$	0.86	$	0.72


Diluted earnings per common share:	$	1.20	$	0.85	$	0.72

The Company has considered the impact of the 2015 Convertible Notes and the restricted shares on diluted earnings per common share. The number of shares of common stock that the 2015 Convertible Notes are convertible into were not included in the computation of diluted net income per common share because the inclusion of those shares would have been anti-dilutive for the years ended December 31, 2014 and 2013.

INCOME TAX

12 Months Ended

Dec. 31, 2015

INCOME TAX

INCOME TAX

12. INCOME TAX

The Company established a TRS, TRS Holdings, in connection with the acquisition of ACRE Capital. In addition, in December 2013 and March 2014, the Company formed ACRC W TRS and ACRC U TRS, respectively, in order to issue and hold certain loans intended for sale. The TRS' income tax provision consisted of the following for the years ended December 31, 2015, 2014 and 2013 ($ in thousands):

	For the year ended December 31,
	2015			2014			2013
Current	$	(165	)	$	329		$	115
Deferred		2,093			(1,372	)		61

Total income tax expense (benefit)	$	1,928		$	(1,043	)	$	176

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are presented net by tax jurisdiction and are included within other assets and other liabilities in the consolidated balance sheets, respectively. As of December 31, 2015 and 2014, the TRS' U.S. tax jurisdiction was in a net deferred tax liability position. The TRS' are not currently subject to tax in any foreign tax jurisdictions.

As of December 31, 2015, TRS Holdings had a net operating loss carryforward of $7.8 million, which may be carried back to 2013 and forward 20 years. The following table presents the U.S. tax jurisdiction and the tax effects of temporary differences on the TRS' respective net deferred tax assets and liabilities ($ in thousands):

	As of December 31,
	2015			2014
Deferred tax assets
Mortgage servicing rights	$	4,083		$	2,844
Net operating loss carryforward		2,906			1,465
Other temporary differences		1,762			1,055

Sub-total-deferred tax assets		8,751			5,364

Deferred tax liabilities
Basis difference in assets from acquisition of ACRE Capital		(2,709	)		(2,654	)
Components of gains from mortgage banking activities		(9,344	)		(4,046	)
Amortization of intangible assets		(297	)		(170	)

Sub-total-deferred tax liabilities		(12,350	)		(6,870	)

Net deferred tax liability	$	(3,599	)	$	(1,506	)

Based on the TRS' assessment, it is more likely than not that the deferred tax assets will be realized through future taxable income. The TRS' recognize interest and penalties related to unrecognized tax benefits within income tax expense in the consolidated statements of operations. Accrued interest and penalties, if any, are included within other liabilities in the consolidated balance sheets.

The following table is a reconciliation of the TRS' statutory U.S. federal income tax rate to the TRS' effective tax rate for the years ended December 31, 2015, 2014 and 2013:

	For the year ended December 31,
	2015			2014			2013
Federal statutory rate		35.0	%		35.0	%		35.0	%
State income taxes		3.6	%		2.4	%		5.7	%
Federal benefit of state tax deduction		(1.3	)%		(0.8	)%		(2.0	)%

Effective tax rate		37.3	%		36.6	%		38.7	%

As of December 31, 2015, tax years 2012 through 2015 remain subject to examination by taxing authorities. The Company does not have any unrecognized tax benefits and the Company does not expect that to change in the next twelve months.

Intercompany Notes

In connection with the acquisition of ACRE Capital, the Company partially capitalized TRS Holdings with a $44.0 million note. In October 2014, the Company entered into an $8.0 million revolving promissory note with TRS Holdings (collectively, the two intercompany notes described above are referred to as, the "Intercompany Notes"). As of December 31, 2015 and 2014, the outstanding principal balance of the Intercompany Notes was $51.9 million and $50.9 million, respectively. The income statement effects of the Intercompany Notes are eliminated in consolidation for financial reporting purposes, but the interest income and expense from the Intercompany Notes will affect the taxable income of the Company and TRS Holdings.

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2015

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

13. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company follows FASB ASC Topic 820-10, Fair Value Measurement ("ASC 820-10"), which expands the application of fair value accounting. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosure requirements for fair value measurements. ASC 820-10 determines fair value to be the price that would be received for a financial instrument in a current sale, which assumes an orderly transaction between market participants on the measurement date. The financial instruments recorded at fair value on a recurring basis in the Company's consolidated financial statements are derivative instruments, MSRs and loans held for sale. ASC 820-10 specifies a hierarchy of valuation techniques based on the inputs used in measuring fair value.

In accordance with ASC 820-10, the inputs used to measure fair value are summarized in the three broad levels listed below:


	•	Level I—Quoted prices in active markets for identical assets or liabilities.
	•	Level II—Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
	•	Level III—Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used.

GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the financial statements, for which it is practical to estimate the value. In cases where quoted market prices are not available, fair values are based upon the application of discount rates to estimated future cash flows using market yields, or other valuation methodologies. Any changes to the valuation methodology will be reviewed by the Company's management to ensure the changes are appropriate. The methods used may produce a fair value calculation that is not indicative of net realizable value or reflective of future fair values. Furthermore, while the Company anticipates that the valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The Company uses inputs that are current as of the measurement date, which may fall within periods of market dislocation, during which price transparency may be reduced.

Financial Instruments Reported at Fair Value

The Company has certain assets and liabilities that are required to be recorded at fair value on a recurring basis in accordance with GAAP. Financial instruments reported at fair value in the Company's consolidated financial statements include MSRs, MSR purchase commitments, loan commitments, forward sale commitments and loans held for sale.

The following table summarizes the levels in the fair value hierarchy into which the Company's financial instruments were categorized as of December 31, 2015 and 2014 ($ in thousands):

	Fair Value as of December 31, 2015
	Level I		Level II		Level III			Total
Loans held for sale	$	—	$	30,612	$	—		$	30,612
Mortgage servicing rights		—		—		61,800			61,800
Derivative assets:
Loan commitments		—		—		8,450			8,450
Forward sale commitments		—		—		25			25
MSR purchase commitment		—		—		330			330
Derivative liabilities:
Forward sale commitments		—		—		(1,868	)		(1,868	)

	Fair Value as of December 31, 2014
	Level I		Level II		Level III			Total
Loans held for sale	$	—	$	203,006	$	—		$	203,006
Mortgage servicing rights		—		—		58,889			58,889
Derivative assets:
Loan commitments		—		—		3,082			3,082
Forward sale commitments		—		—		116			116
Derivative liabilities:
Forward sale commitments		—		—		(1,528	)		(1,528	)

There were no transfers between the levels as of December 31, 2015 and 2014. Transfers between levels are recognized based on the fair value of the financial instrument at the beginning of the period.

Loan commitments and forward sale commitments are valued based on a discounted cash flow model that incorporates changes in interest rates during the period. The MSRs and the MSR purchase commitment are valued based on discounted cash flow models that calculate the present value of estimated future net servicing income. The model considers contractually specified servicing fees, prepayment assumptions, delinquency rates, late charges, other ancillary revenue, costs to service and other economic factors. The loans held for sale are valued based on discounted cash flow models that incorporate quoted observable prices from market participants. The valuation of derivative instruments are determined using widely accepted valuation techniques, including market yield analyses and discounted cash flow analysis on the expected cash flows of each derivative.

The following table summarizes the significant unobservable inputs the Company used to value financial instruments categorized within Level III as of December 31, 2015 ($ in thousands):

				Unobservable Input
Asset Category	Fair Value		Primary Valuation Technique	Input	Range	Weighted Average
Mortgage servicing rights	$	61,800	Discounted cash flow	Discount rate	8 - 14%		11.1	%
Loan commitments and forward sale commitments		6,607	Discounted cash flow	Discount rate	8 - 12%		8.2	%
MSR purchase commitment		330	Discounted cash flow	Discount rate	8%		8.0	%

The following table summarizes the significant unobservable inputs the Company used to value financial instruments categorized within Level III as of December 31, 2014 ($ in thousands):

				Unobservable Input
Asset Category	Fair Value		Primary Valuation Technique	Input	Range	Weighted Average
Mortgage servicing rights	$	58,889	Discounted cash flow	Discount rate	8 - 14%		11.4	%
Loan commitments and forward sale commitments		1,670	Discounted cash flow	Discount rate	8 - 8%		8.0	%

The tables above are not intended to be all-inclusive, but instead are intended to capture the significant unobservable inputs relevant to the Company's determination of fair values. Changes in market yields, discount rates or EBITDA multiples, each in isolation, may have changed the fair value of the financial instruments. Generally, an increase in market yields or discount rates or a decrease in EBITDA multiples may have resulted in a decrease in the fair value of the financial instruments.

The Company's management is responsible for the Company's fair value valuation policies, processes and procedures related to Level III financial instruments. The Company's management reports to the Company's Chief Financial Officer, who has final authority over the valuation of the Company's Level III financial instruments.

The following table summarizes the change in derivative assets and liabilities classified as Level III related to mortgage banking activities as of and for the years ended December 31, 2015 and 2014 ($ in thousands):

Balance as of December 31, 2013	$	3,527
Settlements		(8,893	)
Realized gains (losses) recorded in net income(1)		5,366
Unrealized gains (losses) recorded in net income(1)		1,670

Balance as of December 31, 2014	$	1,670
Settlements		(23,675	)
Realized gains (losses) recorded in net income(1)		22,005
Unrealized gains (losses) recorded in net income(1)		6,937

Balance as of December 31, 2015	$	6,937

(1)Realized and unrealized gains (losses) from derivatives are included within gains from mortgage banking activities in the consolidated statements of operations.

See Note 4 included in these consolidated financial statements for the changes in MSRs that are classified as Level III.

As of December 31, 2015 and 2014, the carrying values and fair values of the Company's financial assets and liabilities recorded at cost are as follows ($ in thousands):

			As of December 31,
			2015				2014
	Level in Fair Value Hierarchy		Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Loans held for investment		3	$	1,174,391	$	1,180,421	$	1,462,584	$	1,472,891
Financial liabilities:
Secured funding agreements		2	$	522,775	$	522,775	$	552,799	$	552,799
Warehouse lines of credit		2		24,806		24,806		193,165		193,165
Secured term loan		2		69,762		75,000		—		—
Convertible notes		2		—		—		67,414		69,000
Commercial mortgage-backed securitization debt (consolidated VIE)		3		61,815		61,856		217,495		219,043
Collateralized loan obligation securitization debt (consolidated VIE)		3		192,528		193,419		305,734		308,703

The carrying values of cash and cash equivalents, restricted cash, interest receivable, due to affiliate liability and accrued expenses approximate their fair values due to their short-term nature.

Loans held for investment are recorded at cost, net of unamortized loan fees and origination costs and net of an allowance for loan losses. The Company may record fair value adjustments on a nonrecurring basis when it has determined that it is necessary to record a specific reserve against a loan and the Company measures such specific reserve using the fair value of the loan's collateral. To determine the fair value of the collateral, the Company may employ different approaches depending on the type of collateral. The Financing Agreements, convertible notes, CMBS debt and collateralized loan obligation ("CLO") debt are recorded at outstanding principal, which is the Company's best estimate of the fair value.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2015

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

14. RELATED PARTY TRANSACTIONS

Management Agreement

The Company is party to a Management Agreement under which ACREM, subject to the supervision and oversight of the Company's board of directors, is responsible for, among other duties, (a) performing all of the Company's day-to-day functions, (b) determining the Company's investment strategy and guidelines in conjunction with the Company's board of directors, (c) sourcing, analyzing and executing investments, asset sales and financing, and (d) performing portfolio management duties. In addition, ACREM has an Investment Committee that oversees compliance with the Company's investment strategy and guidelines, investment portfolio holdings and financing strategy.

In exchange for its services, ACREM is entitled to receive a base management fee, an incentive fee, expense reimbursements, grants of equity-based awards pursuant to the Company's 2012 Equity Incentive Plan and a termination fee, if applicable.

The base management fee is equal to 1.5% of the Company's stockholders' equity per annum, which is calculated and payable quarterly in arrears in cash. For purposes of calculating the base management fee, stockholders' equity means: (a) the sum of (i) the net proceeds from all issuances of the Company's equity securities since inception (allocated on a pro rata daily basis for such issuances during the fiscal quarter of any such issuance), plus (ii) the Company's retained earnings at the end of the most recently completed fiscal quarter determined in accordance with GAAP (without taking into account any non-cash equity compensation expense incurred in current or prior periods); less (b) (x) any amount that the Company has paid to repurchase the Company's common stock since inception, (y) any unrealized gains and losses and other non-cash items that have impacted stockholders' equity as reported in the Company's consolidated financial statements prepared in accordance with GAAP, and (z) one-time events pursuant to changes in GAAP, and certain non-cash items not otherwise described above, in each case after discussions between ACREM and the Company's independent directors and approval by a majority of the Company's independent directors. As a result, the Company's stockholders' equity, for purposes of calculating the management fee, could be greater or less than the amount of stockholders' equity shown in the Company's consolidated financial statements.

The incentive fee is an amount, not less than zero, equal to the difference between: (a) the product of (i) 20% and (ii) the difference between (A) the Company's Core Earnings (as defined below) for the previous 12-month period, and (B) the product of (1) the weighted average of the issue price per share of the Company's common stock of all of the Company's public offerings of common stock multiplied by the weighted average number of all shares of common stock outstanding including any restricted shares of the Company's common stock, restricted stock units or any shares of the Company's common stock not yet issued, but underlying other awards granted under the Company's 2012 Equity Incentive Plan (see Note 10 included in these consolidated financial statements) in the previous 12-month period, and (2) 8%; and (b) the sum of any incentive fees earned by ACREM with respect to the first three fiscal quarters of such previous 12-month period; provided, however, that no incentive fee is payable with respect to any fiscal quarter unless cumulative Core Earnings for the 12 most recently completed fiscal quarters is greater than zero. "Core Earnings" is a non-GAAP measure and is defined as GAAP net income (loss) computed in accordance with GAAP, excluding non-cash equity compensation expense, the incentive fee, depreciation and amortization (to the extent that any of the Company's target investments are structured as debt and the Company forecloses on any properties underlying such debt), any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss), and one-time events pursuant to changes in GAAP and certain non-cash charges after discussions between ACREM and the Company's independent directors and after approval by a majority of the Company's independent directors. No incentive fees were incurred for the years ended December 31, 2015, 2014 and 2013.

The Company reimburses ACREM at cost for operating expenses that ACREM incurs on the Company's behalf, including expenses relating to legal, financial, accounting, servicing, due diligence and other services.

The Company will not reimburse ACREM for the salaries and other compensation of its personnel, except for the allocable share of the salaries and other compensation of the Company's (a) Chief Financial Officer, based on the percentage of his time spent on the Company's affairs and (b) other corporate finance, tax, accounting, internal audit, legal, risk management, operations, compliance and other non-investment professional personnel of ACREM or its affiliates who spend all or a portion of their time managing the Company's affairs based on the percentage of their time spent on the Company's affairs. The Company is also required to pay its pro rata portion of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of ACREM and its affiliates that are required for the Company's operations. The term of the Management Agreement ends on May 1, 2016, with automatic one-year renewal terms thereafter. Except under limited circumstances, upon a termination of the Management Agreement, the Company will pay ACREM a termination fee equal to three times the average annual base management fee and incentive fee received by ACREM during the 24-month period immediately preceding the most recently completed fiscal quarter prior to the date of termination, each as described above.

Certain of the Company's subsidiaries, along with the Company's lenders under certain of the Company's Secured Funding Agreements, as well as under the CMBS and CLO have entered into various servicing agreements with ACREM's subsidiary servicer, Ares Commercial Real Estate Servicer LLC ("ACRES"), a Standard & Poor's-rated commercial special servicer that is included on Standard & Poor's Select Servicer List. Effective January 1, 2015, ACREM transferred primary servicing of the Company's loans held for investment to ACRE Capital. The Company's Manager will specially service, as needed, certain of the Company's investments. Effective May 1, 2012, ACRES agreed that no servicing fees pursuant to these servicing agreements would be charged to the Company or its subsidiaries by ACRES or the Manager for so long as the Management Agreement remains in effect, but that ACRES will continue to receive reimbursement for overhead related to servicing and operational activities pursuant to the terms of the Management Agreement.

In September 2013, the Company and ACREM entered into an amendment to the Management Agreement whereby ACREM agreed not to seek reimbursement of restricted costs in excess of $1.0 million per quarter for the quarterly periods between September 30, 2013 through December 31, 2014.

Summarized below are the related party costs incurred by the Company, including ACRE Capital, for the years ended December 31, 2015, 2014 and 2013 and amounts payable to the Company's Manager as of December 31, 2015 and 2014 ($ in thousands):

	Incurred						Payable
	For the year ended December 31,						As of December 31,
	2015		2014		2013		2015		2014
Affiliate Payments
Management fees	$	5,948	$	5,916	$	4,241	$	1,501	$	1,471
General and administrative expenses		3,878		4,000		3,610		919		1,000
Direct costs		1,489		861		769		238		264

	$	11,315	$	10,777	$	8,620	$	2,658	$	2,735

Ares Investments Holdings LLC

As of December 31, 2014, Ares Investments Holdings LLC, a wholly owned subsidiary of Ares Management, owned $1.2 million aggregate principal amount of the 2015 Convertible Notes. In December 2015, the 2015 Convertible Notes matured and were repaid at par.

Credit Support Fee Agreement

In July 2014, the Company and certain of its subsidiaries entered into a Credit Support Fee Agreement with Ares Management under which the Company agreed to pay Ares Management a credit support fee in an amount equal to 1.50% per annum times the average amount of the loans outstanding under the July 2014 CNB Facility and to reimburse Ares Management for its out-of-pocket costs and expenses in connection with the transaction. During the years ended December 31, 2015 and 2014, the Company incurred a credit support fee of $1.0 million and $278 thousand, respectively, under the July 2014 CNB Facility which is included within interest expense in the Company's consolidated statements of operations. In connection with the Credit Support Fee Agreement, the Company entered into a Pledge Agreement pursuant to which the Company pledged to Ares Management its ownership interests in its wholly owned direct subsidiary, ACRC Holdings LLC, the holding entity for the Company's principal lending business. On December 18, 2015, the Pledge Agreement with Ares Management was terminated. In July 2015, the Company exercised a 12-month extension option to extend the maturity date of the July 2014 CNB Facility to July 31, 2016. See Note 6 included in these consolidated financial statements for more information on the July 2014 CNB Facility.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

DIVIDENDS AND DISTRIBUTIONS

12 Months Ended

Dec. 31, 2015

DIVIDENDS AND DISTRIBUTIONS

DIVIDENDS AND DISTRIBUTIONS

15. DIVIDENDS AND DISTRIBUTIONS

The following table summarizes the Company's dividends declared during the years ended December 31, 2015, 2014 and 2013 ($ in thousands, except per share data):

Date declared	Record date	Payment date	Per share amount		Total amount
November 5, 2015	December 31, 2015	January 19, 2016	$	0.25	$	7,152
July 30, 2015	September 30, 2015	October 15, 2015		0.25		7,152
May 7, 2015	June 30, 2015	July 15, 2015		0.25		7,152
March 5, 2015	March 31, 2015	April 15, 2015		0.25		7,146

Total cash dividends declared for the year ended December 31, 2015			$	1.00	$	28,602


November 10, 2014	December 31, 2014	January 15, 2015	$	0.25	$	7,147
August 6, 2014	September 30, 2014	October 15, 2014		0.25		7,151
May 7, 2014	June 30, 2014	July 16, 2014		0.25		7,151
March 17, 2014	March 31, 2014	April 16, 2014		0.25		7,147

Total cash dividends declared for the year ended December 31, 2014			$	1.00	$	28,596


November 13, 2013	December 31, 2013	January 22, 2014	$	0.25	$	7,127
August 7, 2013	September 30, 2013	October 17, 2013		0.25		7,119
May 15, 2013	June 28, 2013	July 18, 2013		0.25		6,822
March 14, 2013	April 08, 2013	April 18, 2013		0.25		2,317

Total cash dividends declared for the year ended December 31, 2013			$	1.00	$	23,385

VARIABLE INTEREST ENTITIES

12 Months Ended

Dec. 31, 2015

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

16. VARIABLE INTEREST ENTITIES

Consolidated VIEs

As discussed in Note 2, the Company evaluates all of its investments and other interests in entities for consolidation, including its investments in: (a) the CMBS transaction and the Company's retained interests in the subordinated classes of the certificates issued by the Trust (as defined below) it initiated and (b) the CLO transaction and the Company's retained interests in the subordinated notes and preferred equity of the Issuer (as defined below) and (c) a preferred equity investment in an LLC entity (discussed below), all of which are generally considered to be variable interests in a VIE. The Trust and Issuer together are referred herein as the Company's "Securitization VIEs."

CMBS Securitization

In connection with forming ACRE Commercial Mortgage Trust 2013-FL1 (the "Trust"), ACRC 2013-FL1 Depositor LLC (the "Depositor"), a wholly owned subsidiary of the Company, entered into a Pooling and Servicing Agreement dated as of November 1, 2013 (as amended on March 28, 2014, the "Pooling and Servicing Agreement") with Wells Fargo as master servicer, ACRES as servicer, U.S. Bank National Association as trustee, and Trimont Real Estate Advisors Inc. as trust advisor. The Trust is treated for U.S. federal income tax purposes as a real estate mortgage investment conduit.

The Pooling and Servicing Agreement governs the issuance of approximately $493.8 million aggregate principal balance commercial mortgage pass through certificates in a CMBS effected by the Depositor. In connection with the securitization, the Depositor contributed a pool of 18 adjustable rate participation interests in commercial mortgage loans to the Trust. The commercial mortgage loans were originated by the Company or its subsidiaries and are secured by 27 commercial properties. The certificates represent, in the aggregate, the entire beneficial ownership interest in, and the obligations of, the Trust.

In connection with the securitization, the Company offered and sold the following classes of certificates: Class A, Class B, Class C and Class D Certificates (collectively, the "Offered Certificates") to third parties pursuant to an offering made privately in transactions exempt from the registration requirements of the Securities Act of 1933 (the "Securities Act"). As of December 31, 2015 and 2014, the aggregate principal balance of the Offered Certificates was approximately $61.9 million and $219.0 million, respectively. In addition, a wholly owned subsidiary of the Company retained approximately $98.8 million of the certificates. The Company, as the holder of the subordinated classes of the Trust, has the obligation to absorb losses of the Trust, since the Company has a first loss position in the capital structure of the Trust.

CLO Securitization

On August 15, 2014, ACRE Commercial Mortgage 2014-FL2 Ltd. (the "Issuer") and ACRE Commercial Mortgage 2014-FL2 LLC ("Co-Issuer"), both wholly owned indirect subsidiaries of the Company, entered into an indenture with Wells Fargo as advancing agent and note administrator and Wilmington Trust, National Association as trustee, which governs the issuance of approximately $346.1 million principal balance secured floating rate notes (the "Notes") and $32.7 million of preferred equity in the Issuer. For U.S. federal income tax purposes, the Issuer and Co-Issuer are disregarded entities.

The Notes are collateralized by interests in a pool of 15 mortgage assets having a total principal balance of $378.8 million (the "Mortgage Assets") originated by a subsidiary of the Company. The sale of the Mortgage Assets to the Issuer is governed by a Mortgage Asset Purchase Agreement dated as of August 15, 2014, between ACRC Lender LLC and the Issuer. In connection with the securitization, the Issuer and Co-Issuer offered and sold the following classes of Notes: Class A, Class A-S, Class B, Class C and Class D Notes to third parties. A wholly owned subsidiary of the Company retained approximately $37.4 million of the most subordinate Notes and all of the preferred equity in the Issuer. The Company, as the holder of the subordinated Notes and all of the preferred equity in the Issuer, has the obligation to absorb losses of the CLO, since the Company has a first loss position in the capital structure of the CLO. As of December 31, 2015 and 2014, the aggregate principal balance of the Offered Notes was approximately $193.4 million and $308.7 million, respectively.

Summary of Securitization VIEs

As the directing holder of the CMBS and the CLO, the Company has the ability to direct activities that could significantly impact the Securitization VIEs' economic performance. If an unrelated third party had the right to unilaterally remove the special servicer, then the Company would not have the power to direct activities that most significantly impact the Securitization VIEs' economic performance. In addition, there are no substantive kick-out rights of any unrelated third party to remove the special servicer without cause. The Company's subsidiaries, as directing holders, have the ability to remove the special servicer without cause. Based on these factors, the Company is determined to be the primary beneficiary of these Securitization VIEs; thus, the Securitization VIEs are consolidated into the Company's consolidated financial statements.

ACRE Capital is designated as primary servicer and ACRES as special servicer of the CMBS and the CLO. ACRES has the power to direct activities during the loan workout process on defaulted and delinquent loans, which is the activity that most significantly impacts the Securitization VIEs' economic performance. ACRE Capital and ACRES waive the servicing and special servicing fees and the Company pays its overhead costs, as with other servicing agreements.

The Securitization VIEs consolidated in accordance with FASB ASC Topic 810 are structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to the certificate and note holders, as applicable. The assets and other instruments held by the Securitization VIEs are restricted and can only be used to fulfill the obligations of the Securitization VIEs. Additionally, the obligations of the Securitization VIEs do not have any recourse to the general credit of any other consolidated entities, nor to the Company as the primary beneficiary.

The inclusion of the assets and liabilities of Securitization VIEs of which the Company is deemed the primary beneficiary has no economic effect on the Company. The Company's exposure to the obligations of Securitization VIEs is generally limited to its investment in these entities. The Company is not obligated to provide, nor has it provided, any financial support for any of these consolidated structures. As such, the risk associated with the Company's involvement in these Securitization VIEs is limited to the carrying value of its investment in the entity. As of December 31, 2015 and 2014, the Company's maximum risk of loss was $168.8 million, which represents the carrying value of its investment in the Securitization VIEs. For the years ended December 31, 2015 and 2014, the Company incurred interest expense related to the Securitization VIEs of $7.6 million and $9.1 million, respectively, which is included within interest expense in the Company's consolidated statements of operations.

Investment in VIE

On December 19, 2014, the Company and third party institutional investors formed a limited liability company, ACRC KA, which acquired $170.0 million of preferred equity in a REIT whose assets were comprised of a portfolio of 22 multifamily, student housing, medical office and self-storage properties managed by its sponsor. The Company's investment in ACRC KA is considered to be an investment in a VIE. As of December 31, 2015 and 2014, the Company owns a controlling financial interest of 51.0% and 54.3%, respectively, of the equity shares in the VIE and the third party institutional investors own the remaining 49.0% and 45.7%, respectively, a minority financial interest. The preferred equity shares are entitled to a preferred monthly return over the term of the investment at a fixed rate of 10.95% per annum.

ACREM is the non-member manager of the VIE. Based on the terms of the ACRC KA LLC agreement, ACREM has the ability to direct activities that could significantly impact the VIE's economic performance. There are no substantive kick-out rights held by the third party institutional investors to remove ACREM as the non-member manager without cause. As ACREM serves as the manager of the Company, the Company has the right to receive benefits from the VIE that could potentially be significant. As such, the Company is deemed to be the primary beneficiary of the VIE and the party that is most closely associated with the VIE. Thus, the VIE is consolidated into the Company's consolidated financial statements and the preferred equity interests owned by the third party institutional investors are reflected as a non-controlling interest held by third parties within the Company's consolidated balance sheets.

As of December 31, 2015 and 2014, the carrying value of the preferred equity investment, which is net of unamortized fees and origination costs, was $93.9 million and $168.4 million, respectively, and is included within loans held for investment in the consolidated balance sheets. The risk associated solely with respect to the Company's investment in this VIE is limited to the outstanding principal of its investment in the entity. As of December 31, 2015 and 2014, the Company's maximum risk of loss solely with respect to this investment was $48.5 million and $92.4 million, respectively.

Unconsolidated VIEs

The Company also holds variable interests in VIEs structured as preferred equity investments, where the Company does not have a controlling financial interest. For these structures, the Company is not deemed to be the primary beneficiary of the VIE, and the Company does not consolidate these VIEs. These preferred equity investments are accounted for as loans held for investment and are carried at cost, net of unamortized loan fees and origination costs, unless the loans are deemed impaired, and are included within loans held for investment in the Company's consolidated balance sheets.

The Company is not obligated to provide, nor has it provided, any financial support for any of the Company's unconsolidated VIEs. As such, the risks associated with the Company's involvement in these unconsolidated VIEs are limited to the outstanding principal of the Company's investment in the entity.

The following table presents the carrying value and the maximum exposure to loss of unconsolidated VIEs as of December 31, 2015 and 2014 ($ in thousands):

	As of December 31,
	2015		2014
Carrying value	$	55,144	$	38,982
Maximum exposure to loss	$	55,704	$	39,608

ACQUISITIONS	12 Months Ended
ACQUISITIONS	Dec. 31, 2015
ACQUISITIONS
ACQUISITIONS	17. ACQUISITIONS Asset Acquisition On August 25, 2014, ACRE Capital entered into a MSR purchase agreement (the "Purchase Agreement") with a third party which has been accounted for as an asset acquisition under FASB ASC Topic 805, Business Combinations ("ASC 805"). Under the Purchase Agreement, ACRE Capital agreed to purchase the rights to service a portfolio of 46 Freddie Mac multifamily mortgage loans with a total unpaid principal balance of approximately $370.6 million. The aggregate purchase price was approximately $2.2 million, which also included a premium for the Freddie Mac Program Plus® Seller/Servicer license that ACRE Capital was issued by Freddie Mac in connection with the acquisition of the Freddie Mac MSR portfolio. ACRE Capital initially recorded the acquired MSRs at fair value in the amount of $1.3 million and subsequently accounted for these MSRs at fair value consistent with the MSR policy in Note 2 included in these consolidated financial statements. The remaining purchase price of $941 thousand was allocated to the Freddie Mac Program Plus® Seller/Servicer license, an indefinite-lived intangible asset. See Note 5 included in these consolidated financial statements for additional information on this license. On September 16, 2014, ACRE Capital completed the acquisition of the servicing portfolio and legal ownership of the MSRs was transferred to ACRE Capital. Business Combination On August 30, 2013, (the "Acquisition Date"), the Company completed its acquisition of all of the outstanding common units of ACRE Capital from the Sellers. For accounting purposes, the acquisition was deemed to be effective on the close of business September 1, 2013, or the "Accounting Effective Date." Pursuant to the Purchase and Sale Agreement, dated as of May 14, 2013, by and among the Company and the Sellers, the Company paid approximately $53.4 million in cash, subject to adjustment, and issued 588,235 shares of its common stock in a private placement exempt from registration under Section 4(2) of the Securities Act resulting in total consideration paid of approximately $60.9 million. The transaction was accounted for as a business combination under ASC 805. Through ACRE Capital, the Company operates its mortgage banking business. ACRE Capital primarily originates, sells and services multifamily and senior-living related loans under programs offered by Fannie Mae, Freddie Mac and HUD (including Ginnie Mae). The Sellers provided the Company with a minimum working capital balance prior to the Accounting Effective Date. To the extent actual working capital exceeded or fell below the minimum requirement, the Company would either pay or receive funds from the Sellers. There have been no adjustments to the gain on acquisition during the years ended December 31, 2015 and 2014. The gain on acquisition was $4.4 million, which was recognized for the year ended December 31, 2013.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-Section 50
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-Publisher FASB
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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+ Details

SEGMENTS

12 Months Ended

Dec. 31, 2015

SEGMENTS

SEGMENTS

18. SEGMENTS

The Company's reportable segments reflect the significant components of the Company's operations that are evaluated separately by the Company's chief operating decision makers, the Company's Co-Chief Executive Officers, and have discrete financial information available. The Company organizes its segments based primarily upon the nature of the underlying products and services. The Company's Co-Chief Executive Officers and management review certain financial information, including segmented internal profit and loss statements, which are presented below on that basis. The amounts in the reportable segments included in the tables below are in conformity with GAAP and the Company's significant accounting policies as described in Note 2 included in these consolidated financial statements.

The Company operates in two reportable business segments:


	•	principal lending—includes all business activities of the Company, excluding the ACRE Capital business, which generally represents investments in real estate related loans and securities that are held for investment.
	•	mortgage banking—includes all business activities of the acquired ACRE Capital business.

The Company is primarily focused on two business segments involving CRE loans. First, in its principal lending business, the Company originates, invests in, manages and services middle-market CRE loans and other CRE related investments for its own account. These loans and other CRE related investments are generally held for investment and are secured, directly or indirectly, by office, multifamily, retail, industrial and other commercial real estate properties, or by ownership interests therein. Second, in its mortgage banking business, conducted through a wholly owned subsidiary, ACRE Capital, the Company originates, sells and retains servicing of primarily multifamily and other senior-living related CRE loans. These loans are generally held for sale.

Allocated costs between the segments include management fees and general and administrative expenses payable to the Company's Manager, both of which represent shared costs. Each allocation is measured differently based on the specific facts and circumstances of the costs being allocated.

The table below presents the Company's total assets as of December 31, 2015 by business segment ($ in thousands):

	Principal Lending		Mortgage Banking		Total
Cash and cash equivalents	$	5,066	$	3,929	$	8,995
Restricted cash		13,083		17,297		30,380
Loans held for investment		1,174,391		—		1,174,391
Loans held for sale, at fair value		—		30,612		30,612
Mortgage servicing rights, at fair value		—		61,800		61,800
Other assets		53,191		19,613		72,804

Total Assets	$	1,245,731	$	133,251	$	1,378,982

The table below presents the Company's total assets as of December 31, 2014 by business segment ($ in thousands):

	Principal Lending		Mortgage Banking		Total
Cash and cash equivalents	$	15,045	$	1,506	$	16,551
Restricted cash		49,679		16,442		66,121
Loans held for investment		1,462,584		—		1,462,584
Loans held for sale, at fair value		—		203,006		203,006
Mortgage servicing rights, at fair value		—		58,889		58,889
Other assets		39,959		15,045		55,004

Total Assets	$	1,567,267	$	294,888	$	1,862,155

The table below presents the Company's consolidated net income for the year ended December 31, 2015 by business segment ($ in thousands):

	Principal Lending			Mortgage Banking			Total
Net interest margin:
Interest income from loans held for investment	$	86,337		$	—		$	86,337
Interest expense		(36,342	)		—	(2)		(36,342	)

Net interest margin		49,995	(1)		—			49,995

Mortgage banking revenue:
Servicing fees, net		—			16,051	(2)		16,051
Gains from mortgage banking activities		—			27,067			27,067
Provision for loss sharing		—			1,093			1,093
Change in fair value of mortgage servicing rights		—			(8,798	)		(8,798	)

Mortgage banking revenue		—			35,413			35,413

Total revenue		49,995			35,413			85,408

Expenses:
Management fees to affiliate		5,397			551			5,948
Professional fees		2,018			1,073			3,091
Compensation and benefits		—			20,448			20,448
General and administrative expenses		2,830			3,965			6,795
General and administrative expenses reimbursed to affiliate		3,426			452			3,878

Total expenses		13,671			26,489			40,160

Income from operations before income taxes		36,324			8,924			45,248
Income tax expense (benefit)		(11	)		1,939			1,928

Net income attributable to ACRE		36,335			6,985			43,320
Less: Net income attributable to non-controlling interests		(9,035	)		—			(9,035	)

Net income attributable to common stockholders	$	27,300		$	6,985		$	34,285

(1)Revenues from two of the Company's borrowers in the principal lending segment represented approximately 29.1% of the Company's consolidated revenues for the year ended December 31, 2015.

(2)Interest expense does not include interest expense related to the Intercompany Notes, as described in Note 12 included in these consolidated financial statements. Additionally, servicing fees, net does not include servicing fee revenue related to the primary servicing of ACRE's loan portfolio by ACRE Capital, as described in Note 14 included in these consolidated financial statements. The intercompany interest expense and servicing fee revenue are eliminated from the consolidated financial statements of the Company. If intercompany interest expense and servicing fee revenue were included in the consolidated financial statements, interest expense, servicing fees, net and net income for the year ended December 31, 2015 would have been $4.3 million, $16.5 million and $3.1 million, respectively, for mortgage banking.

The table below presents the Company's consolidated net income for the year ended December 31, 2014 by business segment ($ in thousands):

	Principal Lending			Mortgage Banking			Total
Net interest margin:
Interest income from loans held for investment	$	70,495		$	—		$	70,495
Interest expense		(33,637	)		—	(2)		(33,637	)

Net interest margin		36,858	(1)		—			36,858

Mortgage banking revenue:
Servicing fees, net		—			16,399			16,399
Gains from mortgage banking activities		—			17,492			17,492
Provision for loss sharing		—			1,364			1,364
Change in fair value of mortgage servicing rights		—			(7,650	)		(7,650	)

Mortgage banking revenue		—			27,605			27,605

Gain on sale of loans		680			—			680

Total revenue		37,538			27,605			65,143

Expenses:
Management fees to affiliate		5,440			476			5,916
Professional fees		2,686			1,047			3,733
Compensation and benefits		—			18,649			18,649
Acquisition and investment pursuit costs		20			—			20
General and administrative expenses		3,003			6,249			9,252
General and administrative expenses reimbursed to affiliate		3,400			600			4,000

Total expenses		14,549			27,021			41,570

Income from operations before income taxes		22,989			584			23,573
Income tax expense (benefit)		240			(1,283	)		(1,043	)

Net income attributable to ACRE		22,749			1,867			24,616
Less: Net income attributable to non-controlling interests		(220	)		—			(220	)

Net income attributable to common stockholders	$	22,529		$	1,867		$	24,396

(1)Revenues from one of the Company's borrowers in the principal lending segment represented approximately 15.8% of the Company's consolidated revenues for the year ended December 31, 2014.

(2)Interest expense does not include interest expense related to the Intercompany Notes, as described in Note 12 included in these consolidated financial statements. The intercompany interest expense is eliminated from the consolidated financial statements of the Company. If intercompany interest expense were included in the consolidated financial statements, interest expense and net loss for the year ended December 31, 2014 would have been $3.7 million and $1.8 million, respectively, for mortgage banking.

The table below presents the Company's consolidated net income for the year ended December 31, 2013 by business segment ($ in thousands):

	Principal Lending			Mortgage Banking			Total
Net interest margin:
Interest income from loans held for investment	$	37,600		$	—		$	37,600
Interest expense		(14,973	)		—	(2)		(14,973	)

Net interest margin		22,627	(1)		—			22,627

Mortgage banking revenue:
Servicing fees, net		—			5,754			5,754
Gains from mortgage banking activities		—			5,019			5,019
Provision for loss sharing		—			(6	)		(6	)
Change in fair value of mortgage servicing rights		—			(2,697	)		(2,697	)

Mortgage banking revenue		—			8,070			8,070

Gain on sale of loans		—			1,333			1,333

Total revenue		22,627			9,403			32,030

Expenses:
Management fees to affiliate		4,125			116			4,241
Professional fees		2,447			477			2,924
Compensation and benefits		—			5,456			5,456
Acquisition and investment pursuit costs		4,079			—			4,079
General and administrative expenses		2,430			1,525			3,955
General and administrative expenses reimbursed to affiliate		3,394			216			3,610

Total expenses		16,475			7,790			24,265

Changes in fair value of derivatives		1,739			—			1,739

Income from operations before gain on acquisition and income taxes		7,891			1,613			9,504
Gain on acquisition		4,438			—			4,438

Income from operations before income taxes		12,329			1,613			13,942
Income tax expense		—			176			176

Net income attributable to common stockholders	$	12,329		$	1,437		$	13,766

(1)Revenues from one of the Company's borrowers in the principal lending segment represented approximately 13.0% of the Company's consolidated revenues for the year ended December 31, 2013.

(2)Interest expense does not include interest expense related to the Intercompany Notes, as described in Note 12 included in these consolidated financial statements. The intercompany interest expense is eliminated from the consolidated financial statements of the Company. If intercompany interest expense were included in the consolidated financial statements, interest expense and net income for the year ended December 31, 2013 would have been $1.2 million and $244 thousand, respectively, for mortgage banking.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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+ Details

QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2015

QUARTERLY FINANCIAL DATA (UNAUDITED)

QUARTERLY FINANCIAL DATA (UNAUDITED)

19. QUARTERLY FINANCIAL DATA (UNAUDITED)

The following table summarizes the Company's quarterly financial results for each quarter of the years ended December 31, 2015 and 2014 ($ in thousands, except per share data):

	For the three month period ended,
	March 31		June 30		September 30		December 31
2015:
Total revenue	$	18,437	$	22,131	$	23,916	$	20,924
Net income	$	9,295	$	11,263	$	11,710	$	11,052
Net income attributable to common stockholders	$	7,062	$	8,967	$	9,379	$	8,877
Net income per common share—Basic	$	0.25	$	0.31	$	0.33	$	0.31
Net income per common share—Diluted	$	0.25	$	0.31	$	0.33	$	0.31
2014:
Total revenue(1)	$	13,758	$	17,413	$	13,180	$	20,792
Net income	$	4,755	$	6,638	$	4,102	$	9,121
Net income attributable to common stockholders	$	4,755	$	6,638	$	4,102	$	8,901
Net income per common share—Basic	$	0.17	$	0.23	$	0.14	$	0.31
Net income per common share—Diluted	$	0.17	$	0.23	$	0.14	$	0.31

(1)As of December 31, 2014, the Company no longer presents other interest expense in its consolidated statements of operations. Total revenue has been adjusted from the previously filed Forms 10-Q as of March 31, June 30 and September 30, 2014 to reflect the reclassification of other interest expense. Other interest expense related to the 2015 Convertible Notes has been reclassified into interest expense, other interest expense related to the Warehouse Lines of Credit has been reclassified into gains from mortgage banking activities and other interest expense related to escrow accounts has been reclassified into servicing fees, net in the consolidated statements of operations. The impact of these reclasses is a decrease in total revenue by $1.7 million, $1.8 million and $1.9 million, respectively, for the three month periods ending March 31, June 30 and September 30, 2014, respectively.

COSTS ASSOCIATED WITH RESTRUCTURING ACTIVITIES

12 Months Ended

Dec. 31, 2015

COSTS ASSOCIATED WITH RESTRUCTURING ACTIVITIES

COSTS ASSOCIATED WITH RESTRUCTURING ACTIVITIES

20. COSTS ASSOCIATED WITH RESTRUCTURING ACTIVITIES

During the three months ended March 31, 2014, the Company began restructuring and relocating certain ACRE Capital support services in order to centralize the ACRE Capital platform into one location, including the asset management team and leadership. For the years ended December 31, 2015 and 2014, the Company incurred restructuring costs in the mortgage banking segment of $44 thousand and $799 thousand, respectively.

The table below presents a reconciliation of the liability attributable to restructuring costs incurred in the mortgage banking segment as of and for the years ending December 31, 2015 and 2014 ($ in thousands):

	Employee Termination Costs
Balance as of January 1, 2014	$	—
Accruals		799
Payments		(574	)

Balance as of December 31, 2014	$	225
Accruals		44
Payments		(269	)

Balance as of December 31, 2015	$	—

The employee termination costs above are associated with employee severance compensation, retention bonuses and guaranteed bonuses to certain key employees, insurance and outplacement. The costs incurred above are included within general and administrative expenses in the Company's consolidated statements of operations. As of December 31, 2014, the restructuring was complete and all costs were measured; however, the Company recognized restructuring costs through the first quarter of 2015. This measurement included employee costs for employees that were required to render service (beyond a minimum retention period) in order to receive the termination benefits; the Company recognized a liability ratably over the service period.

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2015
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	21. 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-K or would be required to be recognized in the consolidated financial statements as of and for the year ended December 31, 2015, except as disclosed below. On January 20, 2016, the Company originated a $56.0 million first mortgage loan on a hotel portfolio located in California. At closing, the outstanding principal balance was approximately $56.0 million. The loan has an interest rate of LIBOR + 4.75% (plus origination and exit fees) subject to a 0.25% LIBOR floor and an initial term of three years. On February 26, 2016, the Company amended its BAML Facility to expand the eligible assets to include loans secured by general and affordable multifamily properties. On February 26, 2016, the Company amended its March 2014 CNB Facility to extend the maturity date to March 11, 2017. In addition, the Company continues to have one 12-month extension at its option provided that certain conditions are met and applicable extension fees are paid, which, if exercised, would extend the final maturity of the March 2014 CNB Facility to March 10, 2018. On February 28, 2016, the Company's board of directors increased the size of the existing $20.0 million stock repurchase program to $30.0 million and extended the stock repurchase program through March 31, 2017. See "Market For Registrant's Common Equity, Related Stockholder Matters And Issuer Purchases Of Equity Securities—Issuer Purchases of Equity Securities" for more information on the stock repurchase program. On March 1, 2016, the Company declared a cash dividend of $0.26 per common share for the first quarter of 2016. The first quarter 2016 dividend is payable on April 15, 2016 to common stockholders of record as of March 31, 2016.

SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2015

SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with United States generally accepted accounting principles ("GAAP") and include the accounts of the Company, the consolidated variable interest entities ("VIEs") that the Company controls and of which the Company is the primary beneficiary, and the Company's wholly owned subsidiaries. The consolidated financial statements reflect all adjustments and reclassifications that, in the opinion of management, are necessary for the fair presentation of the Company's results of operations and financial condition as of and for the periods presented. All intercompany balances and transactions have been eliminated.

Variable Interest Entities

The Company evaluates all of its interests in VIEs for consolidation. When the Company's interests are determined to be variable interests, the Company assesses whether it is deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 810, Consolidation, defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. The Company considers its variable interests, as well as any variable interests of its related parties in making this determination. Where both of these factors are present, the Company is deemed to be the primary beneficiary and it consolidates the VIE. Where either one of these factors is not present, the Company is not the primary beneficiary and it does not consolidate the VIE.

To assess whether the Company has the power to direct the activities of a VIE that most significantly impact the VIE's economic performance, the Company considers all facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes first, identifying the activities that most significantly impact the VIE's economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE or have the right to unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE.

To assess whether the Company has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Company considers all of its economic interests, including debt and equity investments, servicing fees, and other arrangements deemed to be variable interests in the VIE. This assessment requires that the Company applies judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE's capital structure; and the reasons why the interests are held by the Company.

For VIEs of which the Company is determined to be the primary beneficiary, all of the underlying assets, liabilities, equity, revenue and expenses of the structures are consolidated into the Company's consolidated financial statements.

The Company performs an ongoing reassessment of: (1) whether any entities previously evaluated under the majority voting interest framework have become VIEs, based on certain events, and therefore are subject to the VIE consolidation framework, and (2) whether changes in the facts and circumstances regarding its involvement with a VIE cause the Company's consolidation conclusion regarding the VIE to change. See Note 16 included in these consolidated financial statements for further discussion of the Company's VIEs.

Segment Reporting

The Company has two reportable business segments: principal lending and mortgage banking. See Note 18 included in these consolidated financial statements for further discussion of the Company's reportable business segments.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation. Amortization of convertible notes issuance costs and accretion of convertible notes have been reclassified into amortization of deferred financing costs in the consolidated statements of cash flows. As of December 31, 2015, the Company no longer presents amortization of convertible notes issuance costs and accretion of convertible notes in its consolidated statements of cash flows.

Cash and Cash Equivalents

Cash and cash equivalents include funds on deposit with financial institutions, including demand deposits with financial institutions. Cash and short-term investments with an original maturity of three months or less when acquired are considered cash and cash equivalents for the purpose of the consolidated balance sheets and statements of cash flows.

Restricted Cash

Restricted cash includes escrow deposits for taxes, insurance, leasing outlays, capital expenditures, tenant security deposits and payments required under certain loan agreements. These escrow deposits are held on behalf of the respective borrowers and are offset by escrow liabilities included in other liabilities in the consolidated balance sheets. In connection with its mortgage banking business, the Company held restricted cash, which consisted of reserves that are a requirement of the Fannie Mae DUS program and borrower deposits, which represent funds that were collected for the processing of the borrowers loan applications and loan commitments.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and restricted cash, loans held for investment, MSRs, loans held for sale, interest receivable and derivative financial instruments. The Company places its cash and cash equivalents with financial institutions and, at times, cash held may exceed the FDIC-insured limit. The Company has exposure to credit risk on its loans held for investment and through its subsidiary ACRE Capital, the Company has exposure on credit risk on loans held for sale and the servicing portfolio whereby ACRE Capital shares in the risk of loss (see Note 7 included in these consolidated financial statements). The Company and the Company's Manager seek to manage credit risk by performing due diligence prior to origination or acquisition and through the use of non-recourse financing, when and where available and appropriate.

Loans Held for Investment

The Company originates CRE debt and related instruments generally to be held for investment. Loans that are held for investment are carried at cost, net of unamortized loan fees and origination costs, unless the loans are deemed impaired. Impairment occurs when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan. If a loan is considered to be impaired, the Company will record an allowance to reduce the carrying value of the loan to the present value of expected future cash flows discounted at the loan's contractual effective rate.

Each loan classified as held for investment is evaluated for impairment on a quarterly basis. Loans are collateralized by real estate. The extent of any credit deterioration associated with the performance and/or value of the underlying collateral property and the financial and operating capability of the borrower could impact the expected amounts received. The Company monitors performance of its investment portfolio under the following methodology: (1) borrower review, which analyzes the borrower's ability to execute on its original business plan, reviews its financial condition, assesses pending litigation and considers its general level of responsiveness and cooperation; (2) economic review, which considers underlying collateral, (i.e. leasing performance, unit sales and cash flow of the collateral and its ability to cover debt service, as well as the residual loan balance at maturity); (3) property review, which considers current environmental risks, changes in insurance costs or coverage, current site visibility, capital expenditures and market perception; and (4) market review, which analyzes the collateral from a supply and demand perspective of similar property types, as well as from a capital markets perspective. Such impairment analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, and the borrower's exit plan, among other factors.

In addition, the Company evaluates the entire portfolio to determine whether the portfolio has any impairment that requires a valuation allowance on the remainder of the loan portfolio. As of December 31, 2015, 2014 and 2013, the Company did not recognize any impairment charges with respect to its loans held for investment.

Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed against interest income in the period the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management's judgment regarding the borrower's ability to make pending principal and interest payments. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management's judgment, are likely to remain current. The Company may make exceptions to placing a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection.

Preferred equity investments, which are subordinate to any loans but senior to common equity, are accounted for as loans held for investment and are carried at cost, net of unamortized loan fees and origination costs, unless the loans are deemed impaired, and are included within loans held for investment in the Company's consolidated balance sheets. The Company accretes or amortizes any discounts or premiums over the life of the related loan held for investment utilizing the effective interest method.

Loans Held for Sale

Through its subsidiaries, including ACRE Capital, ACRC Lender W TRS LLC ("ACRC W TRS") and ACRC Lender U TRS LLC ("ACRC U TRS"), the Company originates mortgage loans held for sale, which are recorded at fair value and accounted for under FASB ASC Topic 860, Transfers and Servicing. The holding period for loans originated by ACRE Capital is approximately 30 days. The carrying value of the mortgage loans sold is reduced by the value allocated to the associated retained MSRs based on relative fair value at the time of the sale. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the adjusted value of the related mortgage loans sold.

Although the Company generally holds its target investments as long-term investments within its principal lending business, the Company may occasionally classify some of its investments as held for sale. Investments held for sale will be carried at fair value within loans held for sale in the Company's consolidated balance sheets, with changes in fair value recorded through earnings. The fees received are deferred and recognized as part of the gain or loss on sale. As of December 31, 2015 and 2014, the Company did not have any loans held for sale in its principal lending business.

Mortgage Servicing Rights

When a mortgage loan is sold, ACRE Capital retains the right to service the loan and recognizes the MSR at fair value. The initial fair value represents expected net cash flows from servicing, as well as interest earnings on escrows and interim cash balances, borrower prepayment penalties, delinquency rates, late charges along with ancillary fees that are discounted at a rate that reflects the credit and liquidity risk of the MSR over the estimated life of the underlying loan. After initial recognition, changes in the MSR fair value are included within change in fair value of mortgage servicing rights in the Company's consolidated statements of operations for the period in which the change occurs.

Intangible Assets

Intangible assets consist of ACRE Capital's licenses permitting it to participate in programs offered by Fannie Mae, Freddie Mac and HUD (including Ginnie Mae). These licenses are intangible assets with indefinite lives. The Company evaluates identified intangibles for impairment annually or if other events or circumstances indicate that the carrying value may be impaired.

Debt Issuance Costs

Debt issuance costs under the Company's indebtedness are capitalized and amortized over the terms of the respective debt instrument. Debt issuance costs related to debt securitizations are capitalized and amortized over the term of the underlying loans using the effective interest method. When an underlying loan is prepaid in a debt securitization, the related unamortized debt issuance costs are charged to expense based on a pro-rata share of the debt issuance costs being allocated to the specific loans that were prepaid. Amortization of debt issuance costs is included within interest expense in the Company's consolidated statements of operations while the unamortized balance on (i) Secured Funding Agreements and Warehouse Lines of Credit (each individually defined in Note 6 included in these consolidated financial statements) are included within other assets and (ii) the Secured Term Loan and the 2015 Convertible Notes (each individually defined in Note 6 included in these consolidated financial statements) are included as a reduction to the carrying amount of the liability, in the Company's consolidated balance sheets.

The original issue discount ("OID") on amounts drawn under the Company's Secured Term Loan (defined in Note 6 included in these consolidated financial statements) represents a discount to the face amount of the drawn debt obligations. The OID is amortized over the term of the Secured Term Loan using the effective interest method and is included within interest expense in the Company's consolidated statements of operations while the unamortized balance is a reduction to the carrying amount of the Secured Term Loan in the Company's consolidated balance sheets.

Derivative Financial Instruments

The Company does not hold or issue derivative instruments for trading purposes. The Company recognizes derivatives in its consolidated balance sheets, measures them at their estimated fair value and recognizes changes in their estimated fair value in the Company's consolidated statements of operations for the period in which the change occurs.

Through its subsidiary, ACRE Capital, the Company enters into loan commitments with borrowers on loan originations whereby the interest rate on the prospective loan is determined prior to funding. In general, ACRE Capital simultaneously enters into forward sale commitments with investors in order to hedge interest rate exposure on loan commitments. The forward sale commitment with the investor locks in an interest rate and price for the sale of the loan. The terms of the loan commitment with the borrower and the forward sale commitment with the investor are matched with the objective of hedging interest rate risk. Loan commitments and forward sale commitments are considered undesignated derivative instruments. Accordingly, such commitments, along with any related fees received from potential borrowers, are recorded at fair value, with changes in fair value recorded in earnings.

On December 19, 2012, the Company issued unsecured 7.00% Convertible Senior Notes that matured in December 2015 (the "2015 Convertible Notes"). The conversion features of the 2015 Convertible Notes were deemed to be an embedded derivative under FASB ASC Topic 815, Derivatives and Hedging ("ASC 815"). In accordance with ASC 815, the Company was required to bifurcate the embedded derivative related to the conversion features of the 2015 Convertible Notes. Prior to June 26, 2013, the Company recognized the embedded derivative as a liability on its balance sheet, measured at its estimated fair value and recognized changes in its estimated fair value within changes in fair value of derivatives in the Company's consolidated statements of operations for the period in which the change occurs. See Note 9 included in these consolidated financial statements for information on the derivative liability reclassification. In December 2015, the Company repaid the entire aggregate principal amount outstanding of its 2015 Convertible Notes. See Note 6 included in these consolidated financial statements for information on the 2015 Convertible Notes redemption.

Fair Value Measurements

GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The financial instruments recorded at fair value on a recurring basis in the Company's consolidated financial statements are derivative financial instruments, MSRs and loans held for sale. The Company has not elected the fair value option for certain other financial instruments, including loans held for investment, secured funding agreements and other debt instruments. Such financial instruments are carried at cost. Fair value is separately disclosed (see Note 13 included in these consolidated financial statements).

Allowance for Loss Sharing

When a loan is sold under the Fannie Mae DUS program, ACRE Capital undertakes an obligation to partially guarantee the performance of the loan. The date ACRE Capital commits to make a loan to a borrower, a liability for the fair value of the obligation undertaken in issuing the guarantee is recognized. Subsequent to the initial commitment date, the Company monitors the performance of each loan for events or circumstances which may signal an additional liability to be recognized if there is a probable and estimable loss. The initial fair value of the guarantee is estimated by examining historical loss share experienced in the ACRE Capital Fannie Mae DUS portfolio over the most recent ten-year period. The initial fair value of the guarantee is included within the provision for loss sharing in the Company's consolidated statements of operations. These historical loss shares serve as a basis to derive a loss share rate which is then applied to the current ACRE Capital DUS portfolio (net of specifically identified impaired loans that are subject to a separate loss share reserve analysis).

Servicing Fee Payable

ACRE Capital provides additional payments to certain personnel by providing them with a percentage of the servicing fee revenue that is earned by ACRE Capital, which is initially recorded as a liability when ACRE Capital commits to make a loan to a borrower (the "servicing fee payable"). The initial fair value of the liability represents the expected net cash payments over the life of the related mortgage loan that are discounted at a rate that reflects the credit and liquidity risk of the related MSR. ACRE Capital incurs an expense over the life of each loan as long as the related loan is performing. If a particular loan is not performing, the recipient will not receive the additional compensation on that loan, and if a loss sharing event is triggered, the recipient will not receive a portion of the additional compensation on other loans. The servicing fee payable is included within other liabilities in the consolidated balance sheets. The initial fair value of the related expense is included within gains from mortgage banking activities and the changes in the fair value of the servicing fee payable over the life of the related mortgage loan is included within servicing fee revenue on a net basis in the consolidated statements of operations in the period in which the change occurs.

Revenue Recognition

Interest income from loans held for investment is accrued based on the outstanding principal amount and the contractual terms of each loan. For loans held for investment, origination fees, contractual exit fees and direct loan origination costs are also recognized in interest income from loans held for investment over the initial loan term as a yield adjustment using the effective interest method.

A reconciliation of the Company's interest income from loans held for investment, excluding non-controlling interests, to the Company's interest income from loans held for investment as included within its consolidated statements of operations is as follows ($ in thousands):

	For the year ended December 31,
	2015		2014
Interest income from loans held for investment, excluding non-controlling interests	$	77,278	$	70,188
Interest income from non-controlling interest investment held by third parties		9,059		307

Interest income from loans held for investment	$	86,337	$	70,495

Servicing fees are earned for servicing mortgage loans, including all activities related to servicing the loans, and are recognized as services are provided over the life of the related mortgage loan. Also included in servicing fees are the net fees earned on borrower prepayment penalties and interest earned on borrowers' escrow payments and interim cash balances, along with other ancillary fees and reduced by write-offs of MSRs for loans that are prepaid, changes in the fair value of the servicing fee payable and interest expense related to escrow accounts.

Gains from mortgage banking activities includes the initial fair value of MSRs, loan origination fees, gain on the sale of loans originated, interest income and fees earned on loans held for sale, changes to the fair value of derivative financial instruments attributable to the loan commitments and forward sale commitments and reduced by the expense related to the initial fair value of the servicing fee payable and the interest expense related to the Warehouse Lines of Credit (as defined in Note 6 included in these consolidated financial statements). The initial fair value of MSRs, loan origination fees, gain on the sale of loans originated, certain direct loan origination costs for loans held for sale and the expenses related to the initial fair value of the servicing fee payable are recognized when ACRE Capital commits to make a loan to a borrower. When the Company settles a sale agreement and transfers the mortgage loan to the buyer, the Company recognizes a MSR asset equal to the present value of the expected net cash flows associated with the servicing of loans sold.

Net Interest Margin and Interest Expense

Net interest margin within the consolidated statements of operations is a measure that is specific to the Company's principal lending business and serves to measure the performance of the principal lending segment's loans held for investment as compared to its use of debt leverage. The Company includes interest income from its loans held for investment and interest expense related to its Secured Funding Agreements, securitizations debt, the Secured Term Loan and the 2015 Convertible Notes (individually defined in Note 6 included in these consolidated financial statements) in net interest margin. For the years ended December 31, 2015, 2014 and 2013, interest expense is comprised of the following ($ in thousands):

	For the year ended December 31,
	2015		2014		2013
Secured funding agreements and securitizations debt	$	29,740	$	27,299	$	8,774
Secured term loan		388		—		—
Convertible notes		6,214		6,338		6,199

Interest expense	$	36,342	$	33,637	$	14,973

Stock-Based Compensation

The Company recognizes the cost of stock-based compensation, which is included within compensation and benefits for ACRE Capital and general and administrative expenses for ACRE in the consolidated statements of operations. The fair value of the time vested restricted stock or restricted stock units granted is recorded to expense on a straight-line basis over the vesting period for the award, with an offsetting increase in stockholders' equity. For grants to directors, officers and employees, the fair value is determined based upon the market price of the stock on the grant date.

Certain ACRE Capital employees were granted restricted stock that vest in proportion to various financial performance targets being met over a specified period of time. The fair value of the performance based restricted stock granted is recorded to expense on an accelerated basis, using the accelerated attribution method, over the performance period for the award, with an offsetting increase in stockholders' equity. For performance based measures, compensation expense, net of estimated forfeitures, is recorded based on the Company's estimate of the probable achievement of such measures.

Underwriting Commissions and Offering Costs

Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a reduction of additional paid-in capital. Costs incurred that are not directly associated with the completion of a common stock offering are expensed when incurred. Underwriting commissions that are the responsibility of and paid by a related party, such as the Company's Manager, are reflected as a contribution of additional paid-in capital from a sponsor in the consolidated financial statements.

Income Taxes

The Company has elected and qualified for taxation as a REIT commencing with its taxable year ended December 31, 2012. As a result of the Company's REIT qualification and its distribution policy, the Company does not generally pay U.S. federal corporate level income taxes. Many of the REIT requirements, however, are highly technical and complex. To continue to qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that the Company distribute annually at least 90% of the Company's REIT taxable income to the Company's stockholders. If the Company fails to continue to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, the Company will be subject to U.S. federal and state income taxes at regular corporate rates (including any applicable alternative minimum tax) beginning with the year in which it fails to qualify and may be precluded from being able to elect to be treated as a REIT for the Company's four subsequent taxable years. Even though the Company currently qualifies for taxation as a REIT, the Company may be subject to certain U.S. federal, state, local and foreign taxes on the Company's income and property and to U.S. federal income and excise taxes on the Company's undistributed REIT taxable income.

In connection with the acquisition of ACRE Capital, the Company created a wholly owned subsidiary, ACRE Capital Holdings LLC ("TRS Holdings"), to hold the common units of ACRE Capital. The Company formed a wholly owned subsidiary in December 2013, ACRC W TRS and in March 2014, ACRC U TRS in order to issue and hold certain loans intended for sale. The Company currently owns 100% of the equity of TRS Holdings, ACRC W TRS and ACRC U TRS. Entity classification elections to be taxed as a corporation and taxable REIT subsidiary ("TRS") elections were made with respect to TRS Holdings, ACRC W TRS and ACRC U TRS. A TRS is an entity taxed as a corporation other than a REIT in which a REIT directly or indirectly holds equity, and that has made a joint election with such REIT to be treated as a TRS. Other than some activities relating to lodging and health care facilities, a TRS generally may engage in any business, including investing in assets and engaging in activities that could not be held or conducted directly by the Company without jeopardizing its qualification as a REIT. A TRS is subject to applicable U.S. federal, state, local and foreign income tax on its taxable income. In addition, as a REIT, the Company also may be subject to a 100% excise tax on certain transactions between it and its TRS that are not conducted on an arm's-length basis.

For financial reporting purposes, a provision for current and deferred taxes has been established for the portion of the Company's GAAP consolidated earnings recognized by TRS Holdings, ACRC W TRS and ACRC U TRS.

FASB ASC Topic 740, Income Taxes ("ASC 740"), prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are well documented and supported. As of December 31, 2015 and 2014, based on the Company's evaluation, there is no reserve for any uncertain income tax positions. TRS Holdings, ACRC W TRS and ACRC U TRS recognize interest and penalties, if any, related to unrecognized tax benefits within income tax expense in the consolidated statements of operations. Accrued interest and penalties, if any, are included within other liabilities in the consolidated balance sheets.

Comprehensive Income

For the years ended December 31, 2015, 2014 and 2013, comprehensive income equaled net income; therefore, a separate consolidated statement of comprehensive income is not included in the accompanying consolidated financial statements.

Earnings per Share

The Company calculates basic earnings (loss) per share by dividing net income (loss) allocable to common stockholders for the period by the weighted-average shares of common stock outstanding for that period after consideration of the earnings (loss) allocated to the Company's restricted stock, which are participating securities as defined in GAAP. Diluted earnings (loss) per share takes into effect any dilutive instruments, such as restricted stock and convertible debt, except when doing so would be anti-dilutive. With respect to the 2015 Convertible Notes, the Company applied the treasury stock method when determining the dilutive impact on earnings per share.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates.

Business Combinations

The Company accounts for business combinations using the acquisition method of accounting, under which the purchase price of the acquisition is allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date. The Company recognizes identifiable assets acquired and liabilities (both specific and contingent) assumed at their fair values at the acquisition date. Furthermore, acquisition-related costs, such as due diligence, legal and accounting fees, are not capitalized or applied in determining the fair value of the acquired assets. The excess of the assets acquired and liabilities assumed over the purchase price is recognized as a gain on acquisition. During the measurement period, the Company records adjustments to the assets acquired and liabilities assumed with corresponding adjustments to the gain on acquisition. After the measurement period, which could be up to one year after the transaction date, subsequent adjustments are recorded through earnings.

Asset Acquisitions

The Company accounts for acquired assets and assumed liabilities that do not meet the definition of a business as an asset acquisition, under which the cost of the acquisition is allocated to the assets acquired and liabilities assumed on a relative fair value basis. Acquisition-related costs, such as due diligence, legal and accounting fees, are capitalized as a component of the cost of the assets acquired.

Costs Associated with Restructuring Activities

The Company began restructuring and relocating certain ACRE Capital support services during the three months ended March 31, 2014. The Company incurred costs related to these restructuring activities, including employee termination costs and office relocation costs. The employee termination costs are associated with the severance of certain employees, retention bonuses and guaranteed bonuses to certain key employees, insurance and outplacement, which were accounted for on a straight-line basis over the period from notification through each employee's termination date. If employees were required to render services (beyond a minimum retention period) in order to receive the termination benefits, a liability for employee termination costs was measured initially at the communication date based on its fair value, as of the termination date, and recognized ratably over the future service period. Office relocation costs included costs that were incurred in the physical move of offices and incremental rent costs, which were expensed when space was vacated. The costs incurred were included within general and administrative expenses in the Company's consolidated statements of operations. The ACRE Capital restructuring was completed as of December 31, 2014. See Note 20 included in these consolidated financial statements.

Recent Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, "Revenue Recognition." Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU No. 2014-09 are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.

In February 2015, the FASB issued ASU No. 2015-02, "Consolidation: Amendments to the Consolidation Analysis (Topic 810)." The guidance in this ASU includes amendments to Topic 810, "Consolidation." The new guidance modifies the consolidation analysis for limited and general partnerships and similar type entities, as well as variable interests in a VIE, particularly those that have fee arrangements and related party relationships. Additionally, it provides a scope exception to the consolidation guidance for certain entities. The amendments in ASU No. 2015-02 are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03, "Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." The new guidance modifies the requirements for reporting debt issuance costs. Under the amendments in ASU No. 2015-03, debt issuance costs related to a recognized debt liability will no longer be recorded as a separate asset, but will be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU No. 2015-03. In addition, in August 2015, the FASB issued ASU No. 2015-15, "Interest—Imputation of Interest (Subtopic 835-30)." The additional guidance reiterates that the SEC would not object to an entity deferring and presenting debt issuance costs related to a line of credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings. ASU No. 2015-03 and ASU No. 2015-15 are required to be applied retrospectively for periods beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The Company early adopted this guidance retrospectively during the fourth quarter of 2015. As a result of adopting this guidance, the following balance sheet line items decreased as of December 31, 2014 as presented in the following table ($ in thousands):

	As of December 31, 2014
	Other Assets			Total Assets			Convertible Notes			Commercial Mortgage- Backed Securitization Debt			Collateralized Loan Obligation Securitization Debt			Total Liabilities			Total Liabilities and Equity
Previously reported	$	60,502		$	1,867,653		$	68,395		$	219,043		$	308,703		$	1,386,767		$	1,867,653
Deferred debt issuance costs		(5,498	)		(5,498	)		(981	)		(1,548	)		(2,969	)		(5,498	)		(5,498	)

Current presentation	$	55,004		$	1,862,155		$	67,414		$	217,495		$	305,734		$	1,381,269		$	1,862,155

In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." The guidance in this ASU supersedes the leasing guidance in Topic 840, "Leases." Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases. The amendments in ASU No. 2016-02 are effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2015

SIGNIFICANT ACCOUNTING POLICIES

Reconciliation of interest income from loan held for investment

A reconciliation of the Company's interest income from loans held for investment, excluding non-controlling interests, to the Company's interest income from loans held for investment as included within its consolidated statements of operations is as follows ($ in thousands):

	For the year ended December 31,
	2015		2014
Interest income from loans held for investment, excluding non-controlling interests	$	77,278	$	70,188
Interest income from non-controlling interest investment held by third parties		9,059		307

Interest income from loans held for investment	$	86,337	$	70,495

Schedule of interest expense

For the years ended December 31, 2015, 2014 and 2013, interest expense is comprised of the following ($ in thousands):

	For the year ended December 31,
	2015		2014		2013
Secured funding agreements and securitizations debt	$	29,740	$	27,299	$	8,774
Secured term loan		388		—		—
Convertible notes		6,214		6,338		6,199

Interest expense	$	36,342	$	33,637	$	14,973

Schedule of effect of adoption of new accounting guidance

As a result of adopting this guidance, the following balance sheet line items decreased as of December 31, 2014 as presented in the following table ($ in thousands):

	As of December 31, 2014
	Other Assets			Total Assets			Convertible Notes			Commercial Mortgage- Backed Securitization Debt			Collateralized Loan Obligation Securitization Debt			Total Liabilities			Total Liabilities and Equity
Previously reported	$	60,502		$	1,867,653		$	68,395		$	219,043		$	308,703		$	1,386,767		$	1,867,653
Deferred debt issuance costs		(5,498	)		(5,498	)		(981	)		(1,548	)		(2,969	)		(5,498	)		(5,498	)

Current presentation	$	55,004		$	1,862,155		$	67,414		$	217,495		$	305,734		$	1,381,269		$	1,862,155

- Definition

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56949863&loc=d3e22580-107794

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6510796

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=56949863&loc=d3e22583-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6507316

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

+ Details

LOANS HELD FOR INVESTMENT (Tables)

12 Months Ended

Dec. 31, 2015

LOANS HELD FOR INVESTMENT.

Schedule of loans held for investments

The Company's investments in mortgages and loans held for investment are accounted for at amortized cost. The following tables summarize the Company's loans held for investment as of December 31, 2015 and 2014 ($ in thousands):

	As of December 31, 2015
	Carrying Amount(1)		Outstanding Principal(1)		Weighted Average Interest Rate			Weighted Average Unleveraged Effective Yield(2)			Weighted Average Remaining Life (Years)
Senior mortgage loans	$	961,395	$	965,578		4.4	%		5.1	%		1.4
Subordinated debt and preferred equity investments		166,417		168,264		10.6	%		11.2	%		5.1

Total loans held for investment portfolio (excluding non-controlling interests held by third parties)	$	1,127,812	$	1,133,842		5.3	%		6.0	%		1.9

	As of December 31, 2014
	Carrying Amount(1)		Outstanding Principal(1)		Weighted Average Interest Rate			Weighted Average Unleveraged Effective Yield(2)			Weighted Average Remaining Life (Years)
Senior mortgage loans	$	1,156,476	$	1,164,055		4.5	%		5.0	%		2.1
Subordinated debt and preferred equity investments		228,499		231,226		10.3	%		10.7	%		6.1

Total loans held for investment portfolio (excluding non-controlling interests held by third parties)	$	1,384,975	$	1,395,281		5.5	%		6.0	%		2.8


(1)	The difference between the Carrying Amount and the Outstanding Principal face amount of the loans held for investment consists of unamortized purchase discount, deferred loan fees and loan origination costs. The tables above exclude non-controlling interests held by third parties. A reconciliation of the Carrying Amount of loans held for investment portfolio, excluding non-controlling interests, to the Carrying Amount of loans held for investment, as included within the Company's consolidated balance sheets is presented below.
(2)	Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premium or discount) and assumes no dispositions, early prepayments or defaults. The Total Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all loans held by the Company as of December 31, 2015 and 2014 as weighted by the Outstanding Principal balance of each loan.

Reconciliation of investment portfolio excluding non-controlling interests to loans held for investment

A reconciliation of the Company's loans held for investment portfolio, excluding non-controlling interests held by third parties, to the Company's loans held for investment as included within its consolidated balance sheets is as follows ($ in thousands):

	As of December 31, 2015
	Carrying Amount		Outstanding Principal
Total loans held for investment portfolio (excluding non-controlling interests held by third parties)	$	1,127,812	$	1,133,842
Non-controlling interest investment held by third parties		46,579		46,579

Loans held for investment	$	1,174,391	$	1,180,421

	As of December 31, 2014
	Carrying Amount		Outstanding Principal
Total loans held for investment portfolio (excluding non-controlling interests held by third parties)	$	1,384,975	$	1,395,281
Non-controlling interest investment held by third parties		77,609		77,609

Loans held for investment	$	1,462,584	$	1,472,890

Schedule of current investment portfolio and Outstanding Principal

A more detailed listing of the Company's investment portfolio, excluding non-controlling interests, based on information available as of December 31, 2015 is as follows ($ in millions, except percentages):

Loan Type	Location	Outstanding Principal(1)		Carrying Amount(1)		Interest Rate			Unleveraged Effective Yield(2)			Maturity Date(3)			Payment Terms(4)
Senior Mortgage Loans:
Office	TX	$	80.5	$	80.0		L+5.00	%		6.2	%		Jan 2017			I/O
Retail	IL		75.9		75.6		L+4.00%	(6)		4.8	%		Aug 2017			I/O
Mixed-use	IL		53.2		52.7		L+3.60	%		4.4	%		Oct 2018			I/O
Office	FL		47.3		47.3		L+5.25	%		5.6	%		Apr 2016			I/O
Multifamily	TX		44.7		44.7		L+3.75	%		4.7	%		July 2016			I/O
Healthcare	NY		41.6		41.4		L+5.00	%		5.9	%		Dec 2016			I/O
Industrial	MO/KS		37.4		37.3		L+4.30	%		5.2	%		Jan 2017			P/I	(5)
Hotel	NY		36.5		36.2		L+4.75	%		5.6	%		June 2018			I/O
Hotel	MI		35.2		35.1		L+4.15	%		4.8	%		July 2017			I/O
Multifamily	TX		35.0		35.0		L+3.75	%		4.7	%		July 2016			I/O
Office	FL		34.0		33.9		L+3.65	%		4.3	%		Oct 2017			I/O
Industrial	OH		32.5		32.3		L+4.20	%		5.0	%		May 2018			I/O	(5)
Retail	IL		30.4		30.2		L+3.25	%		4.1	%		Sep 2018			I/O
Multifamily	NY		28.3		28.2		L+3.75	%		4.7	%		Oct 2017			I/O
Multifamily	TX		27.6		27.5		L+3.65	%		4.6	%		Jan 2017			I/O
Office	OR		28.4		28.1		L+3.75	%		4.6	%		Oct 2018			I/O
Mixed-use	NY		28.0		27.9		L+4.25	%		5.0	%		Aug 2017			I/O
Office	KS		25.5		25.5		L+5.00	%		5.9	%		Mar 2016			I/O
Multifamily	TX		25.0		24.9		L+3.65	%		4.6	%		Jan 2017			I/O
Multifamily	TX		23.9		23.8		L+3.80	%		4.4	%		Jan 2019			I/O
Multifamily	GA		23.1		23.0		L+3.85	%		5.0	%		May 2017			I/O
Multifamily	AZ		22.1		22.1		L+4.25	%		5.5	%		Sep 2016			I/O
Industrial	VA		19.0		19.0		L+5.25	%		6.4	%		Jan 2016	(7)		I/O
Office	CO		18.7		18.5		L+3.95	%		4.9	%		Dec 2017			I/O
Office	CA		15.9		15.8		L+3.75	%		4.6	%		July 2016			I/O
Multifamily	NC		16.0		15.9		L+4.00	%		5.0	%		Apr 2017			I/O
Office	CA		14.9		14.9		L+4.50	%		5.5	%		July 2016			I/O
Multifamily	NY		14.9		14.9		L+3.85	%		4.7	%		Nov 2017			I/O
Office	CA		14.5		14.5		L+4.75	%		5.8	%		Feb 2016			I/O
Mixed-use	NY		13.1		13.0		L+3.95	%		5.0	%		Sep 2017			I/O
Multifamily	FL		12.3		12.2		L+3.75	%		4.8	%		Apr 2017			I/O
Industrial	CA		10.1		10.0		L+5.25	%		6.5	%		May 2017			I/O
Subordinated Debt and Preferred Equity Investments:
Multifamily	GA and FL		50.8		50.3		L+11.85%	(8)		12.5	%		June 2021			I/O
Multifamily	NY		33.3		33.2		L+8.07	%		8.8	%		Jan 2019			I/O
Office	GA		14.3		14.3		9.50	%		9.5	%		Aug 2017			I/O
Mixed-use	NY		16.5		16.4		11.50%	(9)		12.1	%		Nov 2016			I/O
Multifamily	TX		4.9		4.8		L+11.00%	(10)		11.8	%		Oct 2016			I/O
Various	Diversified(11)		48.5		47.4		10.95	%		11.7	%		Dec 2024			I/O

Total/Weighted Average		$	1,133.8	$	1,127.8					6.0	%


(1)	The difference between the Carrying Amount and the Outstanding Principal amount of the loans held for investment consists of unamortized purchase discount, deferred loan fees and loan origination costs.
(2)	Unleveraged Effective Yield is the compounded effective rate of return that would be earned over the life of the investment based on the contractual interest rate (adjusted for any deferred loan fees, costs, premium or discount) and assumes no dispositions, early prepayments or defaults. Unleveraged Effective Yield for each loan is calculated based on LIBOR as of December 31, 2015 or the LIBOR floor, as applicable. The Weighted Average Unleveraged Effective Yield is calculated based on the average of Unleveraged Effective Yield of all loans held by the Company as of December 31, 2015 as weighted by the Outstanding Principal balance of each loan.
(3)	Certain loans are subject to contractual extension options that vary between one and two 12-month extensions and may be subject to performance based or other conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment penalty. The Company may also extend contractual maturities in connection with loan modifications.
(4)	I/O = interest only, P/I = principal and interest.
(5)	In January 2015, amortization began on the senior Missouri/Kansas loan, which had an outstanding principal balance of $37.4 million as of December 31, 2015. In May 2017, amortization will begin on the senior Ohio loan, which had an outstanding principal balance of $32.5 million as of December 31, 2015. The remainder of the loans in the Company's principal lending portfolio are non-amortizing through their primary terms.
(6)	In April 2015, the Company entered into a loan modification that lowered the interest rate to L+4.00% with a 4.20% interest rate floor and extended the make-whole provision to November 2016.
(7)	In December 2015, the Company entered into a modification agreement that extended the maturity date to January 2016.
(8)	The preferred return is L+11.85% with 2.00% as payment-in-kind ("PIK"), to the extent cash flow is not available. There is no capped dollar amount on accrued PIK.
(9)	The interest rate is 11.50% with a 9.00% current pay and up to a capped dollar amount as PIK based on the borrower's election. In July 2015, the Company entered into an amendment to increase the loan commitment and outstanding principal by $650 thousand at an interest rate of 15.00% on the increased commitment and outstanding principal only.
(10)	The preferred return is L+11.00% with a L+9.00% current pay and up to a capped dollar amount as PIK.
(11)	The preferred equity investment is in an entity whose assets are comprised of multifamily, student housing and medical office properties.

Schedule of activity in loan portfolio

For the years ended December 31, 2015 and 2014, the activity in the Company's loan portfolio was as follows ($ in thousands):

Balance at December 31, 2013	$	958,495
Initial funding		637,222
Receipt of origination fees, net of costs		(7,026	)
Additional funding		80,215
Loan payoffs		(209,983	)
Origination fee accretion		3,661

Balance at December 31, 2014	$	1,462,584
Initial funding		159,348
Receipt of origination fees, net of costs		(1,078	)
Additional funding		70,529
Amortizing payments		(601	)
Loan payoffs		(446,745	)
Loans sold to third parties(1)		(74,625	)
Origination fee accretion		4,979

Balance at December 31, 2015	$	1,174,391

(1)In July 2015, the Company sold a loan to a third party that was previously classified as held for investment. At the time of the sale, the loan had an unleveraged effective yield of 4.2% as compared to the 4.9% weighted average unleveraged effective yield for all senior loans held by the Company. No gain or loss was recognized on the sale.

MORTGAGE SERVICING RIGHTS (Tables)

12 Months Ended

Dec. 31, 2015

MORTGAGE SERVICING RIGHTS

Schedule of activity related to MSRs

Activity related to MSRs as of and for the years ended December 31, 2015 and 2014 was as follows ($ in thousands):

Balance at December 31, 2013	$	59,640
MSRs acquired in asset acquisition (See Note 17)		1,259
Additions, following sale of loan		7,853
Changes in fair value		(7,650	)
Prepayments and write-offs		(2,213	)

Balance at December 31, 2014	$	58,889
MSRs purchased		549
Additions, following sale of loan		13,267
Changes in fair value		(8,798	)
Prepayments and write-offs		(2,107	)

Balance at December 31, 2015	$	61,800

DEBT (Tables)

12 Months Ended

Dec. 31, 2015

DEBT

Schedule of outstanding balances and total commitments under the Funding Agreements

As of December 31, 2015 and 2014, the outstanding balances and total commitments under the Financing Agreements consisted of the following ($ in thousands):

	As of December 31,
	2015					2014
	Outstanding Balance		Total Commitment			Outstanding Balance		Total Commitment
Wells Fargo Facility	$	101,473	$	225,000		$	120,766	$	225,000
Citibank Facility		112,827		250,000			93,432		250,000
Capital One Facility		—		—	(1)		—		100,000
BAML Facility		—		50,000			—		—
March 2014 CNB Facility		—		50,000			42,000		50,000
July 2014 CNB Facility		66,200		75,000			75,000		75,000
MetLife Facility		109,474		180,000			144,673		180,000
April 2014 UBS Facility		75,558		140,000			19,685		140,000
December 2014 UBS Facility		57,243		57,243			57,243		57,243
ASAP Line of Credit		—		80,000	(2)		58,469		80,000	(2)
BAML Line of Credit		24,806		135,000	(3)		134,696		180,000	(3)
Secured Term Loan		75,000		155,000			—		—

Total	$	622,581	$	1,397,243		$	745,964	$	1,337,243

(1)The secured revolving funding facility with Capital One, National Association (as amended, the "Capital One Facility") matured on May 18, 2015. The Capital One Facility had been repaid in full and its term was not extended.

(2)The commitment amount is subject to change at any time at Fannie Mae's discretion.

(3)In November 2014, the BAML Line of Credit's (defined below) commitment size temporarily increased from $80.0 million to $180.0 million for the period November 25, 2014 through January 26, 2015. In February 2015, the BAML Line of Credit's commitment size increased from $80.0 million to $135.0 million. In April 2015, the BAML Line of Credit's commitment size temporarily increased from $135.0 million to $185.0 million for the period April 15, 2015 to June 1, 2015.

Schedule of principal maturities of the Company's secured funding agreements and the 2015 Convertible Notes

At December 31, 2015, approximate principal maturities of the Company's Financing Agreements are as follows ($ in thousands):

	Wells Fargo Facility		Citibank Facility		BAML Facility		March 2014 CNB Facility		July 2014 CNB Facility		MetLife Facility		April 2014 UBS Facility		December 2014 UBS Facility		Secured Term Loan		ASAP Line of Credit		BAML Line of Credit		Total
2016	$	101,473	$	112,827	$	—	$	—	$	66,200	$	—	$	—	$	57,243	$	—	$	—	$	24,806	$	362,549
2017		—		—		—		—		—		109,474		—		—		—		—		—		109,474
2018		—		—		—		—		—		—		75,558		—		75,000		—		—		150,558
2019		—		—		—		—		—		—		—		—		—		—		—		—
2020		—		—		—		—		—		—		—		—		—		—		—		—
Thereafter		—		—		—		—		—		—		—		—		—		—		—		—

	$	101,473	$	112,827	$	—	$	—	$	66,200	$	109,474	$	75,558	$	57,243	$	75,000	$	—	$	24,806	$	622,581

ALLOWANCE FOR LOSS SHARING (Tables)

12 Months Ended

Dec. 31, 2015

ALLOWANCE FOR LOSS SHARING

Summary of the Company's allowance for loss sharing

A summary of the Company's allowance for loss sharing for the years ended December 31, 2015 and 2014 is as follows ($ in thousands):

Balance at December 31, 2013	$	16,480
Current period provision for loss sharing		(1,364	)
Settlements/Writeoffs		(2,767	)

Balance at December 31, 2014	$	12,349
Current period provision for loss sharing		(1,093	)
Settlements/Writeoffs		(2,287	)

Balance at December 31, 2015	$	8,969

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2015

COMMITMENTS AND CONTINGENCIES

Schedule of loan commitments

As of December 31, 2015 and 2014, the Company had the following commitments to fund various senior mortgage loans, subordinated debt investments, as well as preferred equity investments accounted for as loans held for investment ($ in thousands):

	As of December 31,
	2015			2014
Total commitments	$	1,232,163		$	1,565,117
Less: funded commitments		(1,133,842	)		(1,395,281	)

Total unfunded commitments	$	98,321		$	169,836

Schedule of ACRE Capital's commitments to sell and fund loans

As of December 31, 2015 and 2014, ACRE Capital had the following commitments to sell and fund loans ($ in thousands):

	As of December 31,
	2015		2014
Commitments to sell loans	$	237,372	$	249,803
Commitments to fund loans	$	207,566	$	51,109

Schedule of future minimum payments under the Company's operating leases

The following table shows future minimum payments required under the Company's operating leases as of December 31, 2015 ($ in thousands):

	As of December 31, 2015
2016	$	775
2017		853
2018		837
2019		772
2020		754
Thereafter		1,026

Total	$	5,017

DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 2015

DERIVATIVES

Schedule of fair value of the Company's derivative financial instruments as well as their classification on the balance sheet

The table below presents the fair value of the Company's derivative financial instruments as well as their classification within the Company's consolidated balance sheets as of December 31, 2015 and 2014 ($ in thousands):

	As of December 31,
	2015				2014
	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Derivatives not designated as hedging instruments
Loan commitments	Other assets	$	8,450		Other assets	$	3,082
Forward sale commitments	Other assets		25		Other assets		116
MSR purchase commitment	Other assets		330		Other assets		—
Forward sale commitments	Other liabilities		(1,868	)	Other liabilities		(1,528	)

Total derivatives not designated as hedging instruments		$	6,937			$	1,670

EQUITY (Tables)

12 Months Ended

Dec. 31, 2015

EQUITY

Schedule of total shares issued and proceeds received in public offerings

The following table summarizes the total shares issued and proceeds received in public offerings of the Company's common stock net of offering costs for the year ended December 31, 2013 (in millions, except per share data):

	Shares Issued			Offering Price Per Share		Proceeds Net Of Offering Costs
2013
July 2013		601,590	(1)	$	13.50	$	7.7
June 2013		18,000,000			13.50		234.6

Total for the year ended December 31, 2013		18,601,590				$	242.3

(1)The Company granted the underwriters an option to purchase up to an additional 2.7 million shares of common stock. This amount represents the partial exercise of the option to purchase additional shares by the underwriters.

Schedule of restricted stock grants awarded

The following table details the restricted stock grants awarded as of December 31, 2015:

Grant Date	Vesting Start Date	Shares Granted
May 1, 2012	July 1, 2012		35,135
June 18, 2012	July 1, 2012		7,027
July 9, 2012	October 1, 2012		25,000
June 26, 2013	July 1, 2013		22,526
November 25, 2013	November 25, 2016		30,381
January 31, 2014	August 31, 2015		48,273
February 26, 2014	February 26, 2014		12,030
February 27, 2014	August 27, 2014		22,354
June 24, 2014	June 24, 2014		17,658
June 24, 2015	July 1, 2015		25,555

Total			245,939

Schedule of restricted stock award activity

The following tables summarize the non-vested shares of restricted stock and the vesting schedule of shares of restricted stock for the Company's directors and officers and employees of ACRE Capital as of December 31, 2015.

Schedule of Non-Vested Share and Share Equivalents

	Restricted Stock Grants—Directors			Restricted Stock Grants—Officer			Restricted Stock Grants—Employees			Total
Balance as of December 31, 2014		21,324			10,936			78,654			110,914
Granted		25,555			—			—			25,555
Vested		(27,114	)		(6,250	)		(16,091	)		(49,455	)
Forfeited		(2,820	)		—			—			(2,820	)

Balance as of December 31, 2015		16,945			4,686			62,563			84,194

Future anticipated vesting schedule of restricted stock awards

Future Anticipated Vesting Schedule

	Restricted Stock Grants—Directors		Restricted Stock Grants—Officer		Restricted Stock Grants—Employees(1)		Total
2016		16,111		4,686		30,381		51,178
2017		834		—		—		834
2018		—		—		—		—
2019		—		—		—		—
2020		—		—		—		—

Total		16,945		4,686		30,381		52,012

(1)Future anticipated vesting related to an employee of ACRE Capital that was granted restricted stock that vests in proportion to certain financial performance targets being met over a specified period of time is not included due to uncertainty in actual vesting date.

Summary of activity in the Company's vested and nonvested shares of restricted stock

The following table summarizes the restricted stock compensation expense included in general and administrative expenses for ACRE and compensation and benefits for ACRE Capital, the total fair value of shares vested and the weighted average grant date fair value of the restricted stock granted to the Company's directors and officers and employees of ACRE Capital for the years ended December 31, 2015, 2014 and 2013 ($ in thousands):

	For the year ended December 31,
	2015								2014								2013
	Restricted Stock Grants								Restricted Stock Grants								Restricted Stock Grants
	Directors		Officer		Employees		Total		Directors		Officer		Employees		Total		Directors		Officer		Employees		Total
Compensation expense	$	330	$	106	$	399	$	835	$	445	$	106	$	388	$	939	$	408	$	106	$	10	$	524
Total fair value of shares vested(1)		313		72		201		586		399		79		56		534		366		92		—		458
Weighted average grant date fair value		299		—		—		299		385		—		944		1,329		289		—		398		687


(1)	Based on the closing price of the Company's common stock on the NYSE on each vesting date.

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2015

EARNINGS PER SHARE

Schedule of computations of basic and diluted earnings per share

The following information sets forth the computations of basic and diluted earnings per common share for the years ended December 31, 2015, 2014 and 2013 ($ in thousands, except share and per share data):

	For the year ended December 31,
	2015		2014		2013
Net income attributable to common stockholders:	$	34,285	$	24,396	$	13,766
Divided by:
Basic weighted average shares of common stock outstanding:		28,501,897		28,459,309		18,989,500
Non-vested restricted stock		95,671		125,713		48,652

Diluted weighted average shares of common stock outstanding:		28,597,568		28,585,022		19,038,152

Basic earnings per common share:	$	1.20	$	0.86	$	0.72


Diluted earnings per common share:	$	1.20	$	0.85	$	0.72

INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2015

INCOME TAX

Schedule of components of the TRS's income tax provision

The TRS' income tax provision consisted of the following for the years ended December 31, 2015, 2014 and 2013 ($ in thousands):

	For the year ended December 31,
	2015			2014			2013
Current	$	(165	)	$	329		$	115
Deferred		2,093			(1,372	)		61

Total income tax expense (benefit)	$	1,928		$	(1,043	)	$	176

Schedule of U.S. tax jurisdiction and the tax effects of temporary differences on their respective net deferred tax assets and liabilities

The following table presents the U.S. tax jurisdiction and the tax effects of temporary differences on the TRS' respective net deferred tax assets and liabilities ($ in thousands):

	As of December 31,
	2015			2014
Deferred tax assets
Mortgage servicing rights	$	4,083		$	2,844
Net operating loss carryforward		2,906			1,465
Other temporary differences		1,762			1,055

Sub-total-deferred tax assets		8,751			5,364

Deferred tax liabilities
Basis difference in assets from acquisition of ACRE Capital		(2,709	)		(2,654	)
Components of gains from mortgage banking activities		(9,344	)		(4,046	)
Amortization of intangible assets		(297	)		(170	)

Sub-total-deferred tax liabilities		(12,350	)		(6,870	)

Net deferred tax liability	$	(3,599	)	$	(1,506	)

Schedule of reconciliation of the TRS's effective tax rate determined using the TRS's statutory U.S. federal tax rate

	For the year ended December 31,
	2015			2014			2013
Federal statutory rate		35.0	%		35.0	%		35.0	%
State income taxes		3.6	%		2.4	%		5.7	%
Federal benefit of state tax deduction		(1.3	)%		(0.8	)%		(2.0	)%

Effective tax rate		37.3	%		36.6	%		38.7	%

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2015

FAIR VALUE OF FINANCIAL INSTRUMENTS

Summary of the levels in the fair value hierarchy into which the Company's financial instruments were categorized

The following table summarizes the levels in the fair value hierarchy into which the Company's financial instruments were categorized as of December 31, 2015 and 2014 ($ in thousands):

	Fair Value as of December 31, 2015
	Level I		Level II		Level III			Total
Loans held for sale	$	—	$	30,612	$	—		$	30,612
Mortgage servicing rights		—		—		61,800			61,800
Derivative assets:
Loan commitments		—		—		8,450			8,450
Forward sale commitments		—		—		25			25
MSR purchase commitment		—		—		330			330
Derivative liabilities:
Forward sale commitments		—		—		(1,868	)		(1,868	)

	Fair Value as of December 31, 2014
	Level I		Level II		Level III			Total
Loans held for sale	$	—	$	203,006	$	—		$	203,006
Mortgage servicing rights		—		—		58,889			58,889
Derivative assets:
Loan commitments		—		—		3,082			3,082
Forward sale commitments		—		—		116			116
Derivative liabilities:
Forward sale commitments		—		—		(1,528	)		(1,528	)

Schedule of significant unobservable inputs used to value the financial instruments categorized within Level 3

The following table summarizes the significant unobservable inputs the Company used to value financial instruments categorized within Level III as of December 31, 2015 ($ in thousands):

				Unobservable Input
Asset Category	Fair Value		Primary Valuation Technique	Input	Range	Weighted Average
Mortgage servicing rights	$	61,800	Discounted cash flow	Discount rate	8 - 14%		11.1	%
Loan commitments and forward sale commitments		6,607	Discounted cash flow	Discount rate	8 - 12%		8.2	%
MSR purchase commitment		330	Discounted cash flow	Discount rate	8%		8.0	%

The following table summarizes the significant unobservable inputs the Company used to value financial instruments categorized within Level III as of December 31, 2014 ($ in thousands):

				Unobservable Input
Asset Category	Fair Value		Primary Valuation Technique	Input	Range	Weighted Average
Mortgage servicing rights	$	58,889	Discounted cash flow	Discount rate	8 - 14%		11.4	%
Loan commitments and forward sale commitments		1,670	Discounted cash flow	Discount rate	8 - 8%		8.0	%

Summary of change in derivative assets and liabilities classified as Level III

The following table summarizes the change in derivative assets and liabilities classified as Level III related to mortgage banking activities as of and for the years ended December 31, 2015 and 2014 ($ in thousands):

Balance as of December 31, 2013	$	3,527
Settlements		(8,893	)
Realized gains (losses) recorded in net income(1)		5,366
Unrealized gains (losses) recorded in net income(1)		1,670

Balance as of December 31, 2014	$	1,670
Settlements		(23,675	)
Realized gains (losses) recorded in net income(1)		22,005
Unrealized gains (losses) recorded in net income(1)		6,937

Balance as of December 31, 2015	$	6,937

(1)Realized and unrealized gains (losses) from derivatives are included within gains from mortgage banking activities in the consolidated statements of operations.

Schedule of carrying value and estimated fair value of the Company's financial instruments not carried at fair value on the consolidated balance sheet

As of December 31, 2015 and 2014, the carrying values and fair values of the Company's financial assets and liabilities recorded at cost are as follows ($ in thousands):

			As of December 31,
			2015				2014
	Level in Fair Value Hierarchy		Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Loans held for investment		3	$	1,174,391	$	1,180,421	$	1,462,584	$	1,472,891
Financial liabilities:
Secured funding agreements		2	$	522,775	$	522,775	$	552,799	$	552,799
Warehouse lines of credit		2		24,806		24,806		193,165		193,165
Secured term loan		2		69,762		75,000		—		—
Convertible notes		2		—		—		67,414		69,000
Commercial mortgage-backed securitization debt (consolidated VIE)		3		61,815		61,856		217,495		219,043
Collateralized loan obligation securitization debt (consolidated VIE)		3		192,528		193,419		305,734		308,703

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2015

RELATED PARTY TRANSACTIONS

Summarized below are the related party costs incurred by the Company, including ACRE Capital, for the years ended December 31, 2015, 2014 and 2013 and amounts payable to the Company's Manager as of December 31, 2015 and 2014 ($ in thousands):

	Incurred						Payable
	For the year ended December 31,						As of December 31,
	2015		2014		2013		2015		2014
Affiliate Payments
Management fees	$	5,948	$	5,916	$	4,241	$	1,501	$	1,471
General and administrative expenses		3,878		4,000		3,610		919		1,000
Direct costs		1,489		861		769		238		264

	$	11,315	$	10,777	$	8,620	$	2,658	$	2,735

DIVIDENDS AND DISTRIBUTIONS (Tables)

12 Months Ended

Dec. 31, 2015

DIVIDENDS AND DISTRIBUTIONS

Summary of the Company's dividends declared

The following table summarizes the Company's dividends declared during the years ended December 31, 2015, 2014 and 2013 ($ in thousands, except per share data):

Date declared	Record date	Payment date	Per share amount		Total amount
November 5, 2015	December 31, 2015	January 19, 2016	$	0.25	$	7,152
July 30, 2015	September 30, 2015	October 15, 2015		0.25		7,152
May 7, 2015	June 30, 2015	July 15, 2015		0.25		7,152
March 5, 2015	March 31, 2015	April 15, 2015		0.25		7,146

Total cash dividends declared for the year ended December 31, 2015			$	1.00	$	28,602


November 10, 2014	December 31, 2014	January 15, 2015	$	0.25	$	7,147
August 6, 2014	September 30, 2014	October 15, 2014		0.25		7,151
May 7, 2014	June 30, 2014	July 16, 2014		0.25		7,151
March 17, 2014	March 31, 2014	April 16, 2014		0.25		7,147

Total cash dividends declared for the year ended December 31, 2014			$	1.00	$	28,596


November 13, 2013	December 31, 2013	January 22, 2014	$	0.25	$	7,127
August 7, 2013	September 30, 2013	October 17, 2013		0.25		7,119
May 15, 2013	June 28, 2013	July 18, 2013		0.25		6,822
March 14, 2013	April 08, 2013	April 18, 2013		0.25		2,317

Total cash dividends declared for the year ended December 31, 2013			$	1.00	$	23,385

VARIABLE INTEREST ENTITIES (Tables)

12 Months Ended

Dec. 31, 2015

VARIABLE INTEREST ENTITIES

Schedule of carrying value and maximum exposure of unconsolidated VIEs

The following table presents the carrying value and the maximum exposure to loss of unconsolidated VIEs as of December 31, 2015 and 2014 ($ in thousands):

	As of December 31,
	2015		2014
Carrying value	$	55,144	$	38,982
Maximum exposure to loss	$	55,704	$	39,608

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2015

SEGMENTS

Schedule of the Company's results of total assets by business segment

The table below presents the Company's total assets as of December 31, 2015 by business segment ($ in thousands):

	Principal Lending		Mortgage Banking		Total
Cash and cash equivalents	$	5,066	$	3,929	$	8,995
Restricted cash		13,083		17,297		30,380
Loans held for investment		1,174,391		—		1,174,391
Loans held for sale, at fair value		—		30,612		30,612
Mortgage servicing rights, at fair value		—		61,800		61,800
Other assets		53,191		19,613		72,804

Total Assets	$	1,245,731	$	133,251	$	1,378,982

The table below presents the Company's total assets as of December 31, 2014 by business segment ($ in thousands):

	Principal Lending		Mortgage Banking		Total
Cash and cash equivalents	$	15,045	$	1,506	$	16,551
Restricted cash		49,679		16,442		66,121
Loans held for investment		1,462,584		—		1,462,584
Loans held for sale, at fair value		—		203,006		203,006
Mortgage servicing rights, at fair value		—		58,889		58,889
Other assets		39,959		15,045		55,004

Total Assets	$	1,567,267	$	294,888	$	1,862,155

Schedule of Company's consolidated net income by business segment

The table below presents the Company's consolidated net income for the year ended December 31, 2015 by business segment ($ in thousands):

	Principal Lending			Mortgage Banking			Total
Net interest margin:
Interest income from loans held for investment	$	86,337		$	—		$	86,337
Interest expense		(36,342	)		—	(2)		(36,342	)

Net interest margin		49,995	(1)		—			49,995

Mortgage banking revenue:
Servicing fees, net		—			16,051	(2)		16,051
Gains from mortgage banking activities		—			27,067			27,067
Provision for loss sharing		—			1,093			1,093
Change in fair value of mortgage servicing rights		—			(8,798	)		(8,798	)

Mortgage banking revenue		—			35,413			35,413

Total revenue		49,995			35,413			85,408

Expenses:
Management fees to affiliate		5,397			551			5,948
Professional fees		2,018			1,073			3,091
Compensation and benefits		—			20,448			20,448
General and administrative expenses		2,830			3,965			6,795
General and administrative expenses reimbursed to affiliate		3,426			452			3,878

Total expenses		13,671			26,489			40,160

Income from operations before income taxes		36,324			8,924			45,248
Income tax expense (benefit)		(11	)		1,939			1,928

Net income attributable to ACRE		36,335			6,985			43,320
Less: Net income attributable to non-controlling interests		(9,035	)		—			(9,035	)

Net income attributable to common stockholders	$	27,300		$	6,985		$	34,285

(1)Revenues from two of the Company's borrowers in the principal lending segment represented approximately 29.1% of the Company's consolidated revenues for the year ended December 31, 2015.

(2)Interest expense does not include interest expense related to the Intercompany Notes, as described in Note 12 included in these consolidated financial statements. Additionally, servicing fees, net does not include servicing fee revenue related to the primary servicing of ACRE's loan portfolio by ACRE Capital, as described in Note 14 included in these consolidated financial statements. The intercompany interest expense and servicing fee revenue are eliminated from the consolidated financial statements of the Company. If intercompany interest expense and servicing fee revenue were included in the consolidated financial statements, interest expense, servicing fees, net and net income for the year ended December 31, 2015 would have been $4.3 million, $16.5 million and $3.1 million, respectively, for mortgage banking.

The table below presents the Company's consolidated net income for the year ended December 31, 2014 by business segment ($ in thousands):

	Principal Lending			Mortgage Banking			Total
Net interest margin:
Interest income from loans held for investment	$	70,495		$	—		$	70,495
Interest expense		(33,637	)		—	(2)		(33,637	)

Net interest margin		36,858	(1)		—			36,858

Mortgage banking revenue:
Servicing fees, net		—			16,399			16,399
Gains from mortgage banking activities		—			17,492			17,492
Provision for loss sharing		—			1,364			1,364
Change in fair value of mortgage servicing rights		—			(7,650	)		(7,650	)

Mortgage banking revenue		—			27,605			27,605

Gain on sale of loans		680			—			680

Total revenue		37,538			27,605			65,143

Expenses:
Management fees to affiliate		5,440			476			5,916
Professional fees		2,686			1,047			3,733
Compensation and benefits		—			18,649			18,649
Acquisition and investment pursuit costs		20			—			20
General and administrative expenses		3,003			6,249			9,252
General and administrative expenses reimbursed to affiliate		3,400			600			4,000

Total expenses		14,549			27,021			41,570

Income from operations before income taxes		22,989			584			23,573
Income tax expense (benefit)		240			(1,283	)		(1,043	)

Net income attributable to ACRE		22,749			1,867			24,616
Less: Net income attributable to non-controlling interests		(220	)		—			(220	)

Net income attributable to common stockholders	$	22,529		$	1,867		$	24,396

(1)Revenues from one of the Company's borrowers in the principal lending segment represented approximately 15.8% of the Company's consolidated revenues for the year ended December 31, 2014.

(2)Interest expense does not include interest expense related to the Intercompany Notes, as described in Note 12 included in these consolidated financial statements. The intercompany interest expense is eliminated from the consolidated financial statements of the Company. If intercompany interest expense were included in the consolidated financial statements, interest expense and net loss for the year ended December 31, 2014 would have been $3.7 million and $1.8 million, respectively, for mortgage banking.

The table below presents the Company's consolidated net income for the year ended December 31, 2013 by business segment ($ in thousands):

	Principal Lending			Mortgage Banking			Total
Net interest margin:
Interest income from loans held for investment	$	37,600		$	—		$	37,600
Interest expense		(14,973	)		—	(2)		(14,973	)

Net interest margin		22,627	(1)		—			22,627

Mortgage banking revenue:
Servicing fees, net		—			5,754			5,754
Gains from mortgage banking activities		—			5,019			5,019
Provision for loss sharing		—			(6	)		(6	)
Change in fair value of mortgage servicing rights		—			(2,697	)		(2,697	)

Mortgage banking revenue		—			8,070			8,070

Gain on sale of loans		—			1,333			1,333

Total revenue		22,627			9,403			32,030

Expenses:
Management fees to affiliate		4,125			116			4,241
Professional fees		2,447			477			2,924
Compensation and benefits		—			5,456			5,456
Acquisition and investment pursuit costs		4,079			—			4,079
General and administrative expenses		2,430			1,525			3,955
General and administrative expenses reimbursed to affiliate		3,394			216			3,610

Total expenses		16,475			7,790			24,265

Changes in fair value of derivatives		1,739			—			1,739

Income from operations before gain on acquisition and income taxes		7,891			1,613			9,504
Gain on acquisition		4,438			—			4,438

Income from operations before income taxes		12,329			1,613			13,942
Income tax expense		—			176			176

Net income attributable to common stockholders	$	12,329		$	1,437		$	13,766

(1)Revenues from one of the Company's borrowers in the principal lending segment represented approximately 13.0% of the Company's consolidated revenues for the year ended December 31, 2013.

(2)Interest expense does not include interest expense related to the Intercompany Notes, as described in Note 12 included in these consolidated financial statements. The intercompany interest expense is eliminated from the consolidated financial statements of the Company. If intercompany interest expense were included in the consolidated financial statements, interest expense and net income for the year ended December 31, 2013 would have been $1.2 million and $244 thousand, respectively, for mortgage banking.

QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2015

QUARTERLY FINANCIAL DATA (UNAUDITED)

Summary of the entity's quarterly financial results

The following table summarizes the Company's quarterly financial results for each quarter of the years ended December 31, 2015 and 2014 ($ in thousands, except per share data):

	For the three month period ended,
	March 31		June 30		September 30		December 31
2015:
Total revenue	$	18,437	$	22,131	$	23,916	$	20,924
Net income	$	9,295	$	11,263	$	11,710	$	11,052
Net income attributable to common stockholders	$	7,062	$	8,967	$	9,379	$	8,877
Net income per common share—Basic	$	0.25	$	0.31	$	0.33	$	0.31
Net income per common share—Diluted	$	0.25	$	0.31	$	0.33	$	0.31
2014:
Total revenue(1)	$	13,758	$	17,413	$	13,180	$	20,792
Net income	$	4,755	$	6,638	$	4,102	$	9,121
Net income attributable to common stockholders	$	4,755	$	6,638	$	4,102	$	8,901
Net income per common share—Basic	$	0.17	$	0.23	$	0.14	$	0.31
Net income per common share—Diluted	$	0.17	$	0.23	$	0.14	$	0.31

(1)As of December 31, 2014, the Company no longer presents other interest expense in its consolidated statements of operations. Total revenue has been adjusted from the previously filed Forms 10-Q as of March 31, June 30 and September 30, 2014 to reflect the reclassification of other interest expense. Other interest expense related to the 2015 Convertible Notes has been reclassified into interest expense, other interest expense related to the Warehouse Lines of Credit has been reclassified into gains from mortgage banking activities and other interest expense related to escrow accounts has been reclassified into servicing fees, net in the consolidated statements of operations. The impact of these reclasses is a decrease in total revenue by $1.7 million, $1.8 million and $1.9 million, respectively, for the three month periods ending March 31, June 30 and September 30, 2014, respectively.

COSTS ASSOCIATED WITH RESTRUCTURING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2015

COSTS ASSOCIATED WITH RESTRUCTURING ACTIVITIES

Schedule of reconciliation of the liability attributable to restructuring costs incurred in the mortgage banking segment

The table below presents a reconciliation of the liability attributable to restructuring costs incurred in the mortgage banking segment as of and for the years ending December 31, 2015 and 2014 ($ in thousands):

	Employee Termination Costs
Balance as of January 1, 2014	$	—
Accruals		799
Payments		(574	)

Balance as of December 31, 2014	$	225
Accruals		44
Payments		(269	)

Balance as of December 31, 2015	$	—

ORGANIZATION (Details)	12 Months Ended
ORGANIZATION (Details)	Dec. 31, 2015
Maximum
ORGANIZATION
Term of debt	10 years

SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($) item	Dec. 31, 2014 USD ($) item	Dec. 31, 2013 USD ($)
Segment Reporting.
Number of reportable segments as a result of the Acquisition \| item	2	2
Loans Held for Investment
Impairments of loan held for investment \| $	$ 0	$ 0	$ 0

SIGNIFICANT ACCOUNTING POLICIES - Loans Held for Sale and Revenue Recognition (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($) item	Dec. 31, 2014 USD ($) item	Dec. 31, 2013 USD ($)
Loans held for sale
Minimum period of past due for loans to be placed on non-accrual status	30 days
Revenue Recognition
Interest income from loans held for investment, excluding non-controlling interests	$ 77,278	$ 70,188
Interest income from non-controlling interest investment held by third parties	9,059	307
Interest income from loans held for investment	$ 86,337	$ 70,495	$ 37,600
ACRE
Loans held for sale
Number of loans held for sale \| item	0	0
Revenue Recognition
Interest income from loans held for investment	$ 86,337	$ 70,495	$ 37,600
ACRE Capital
Loans held for sale
Holding period of mortgage loans held for sale	30 days

SIGNIFICANT ACCOUNTING POLICIES - Net Interest Margin and Interest Expense and Business Combinations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 19, 2012
Convertible Senior Notes
Interest expense	$ 36,342	$ 33,637	$ 14,973
Business Combinations
Maximum measurement period after the transaction date for subsequent adjustments	1 year
Fannie Mae
Convertible Senior Notes
Loss period considered for calculation of fair value of guarantee	10 years
Secured funding agreements and securitizations debt
Convertible Senior Notes
Interest expense	$ 29,740	27,299	8,774
Secured term loan
Convertible Senior Notes
Interest expense	388
2015 Convertible Notes
Convertible Senior Notes
Interest rate (as a percent)				7.00%
Interest expense	$ 6,214	$ 6,338	$ 6,199

SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details)	12 Months Ended
	Dec. 31, 2015
Income Taxes
Period of disqualification of REIT status	4 years
TRS'
Income Taxes
Ownership percentage	100.00%
Excise tax rate (as a percent)	100.00%
ACRC U TRS
Income Taxes
Ownership percentage	100.00%
Excise tax rate (as a percent)	100.00%
ACRE Capital \| ACRC W TRS
Income Taxes
Ownership percentage	100.00%
Excise tax rate (as a percent)	100.00%

SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Other Assets	$ 72,804	$ 55,004
Total Assets	1,378,982	1,862,155
LIABILITIES
Convertible Notes		67,414
Commercial Mortgage-Backed Securitization Debt	61,815	217,495
Collateralized Loan Obligation Securitization Debt	192,528	305,734
Total Liabilities	922,494	1,381,269
Total Liabilities and Equity	$ 1,378,982	1,862,155
Previously reported
ASSETS
Other Assets		60,502
Total Assets		1,867,653
LIABILITIES
Convertible Notes		68,395
Commercial Mortgage-Backed Securitization Debt		219,043
Collateralized Loan Obligation Securitization Debt		308,703
Total Liabilities		1,386,767
Total Liabilities and Equity		1,867,653
Deferred debt issuance costs \| Accounting Standards Update 2015-03 and Accounting Standards Update 2015-15 \| Effect of early adoption
ASSETS
Other Assets		(5,498)
Total Assets		(5,498)
LIABILITIES
Convertible Notes		(981)
Commercial Mortgage-Backed Securitization Debt		(1,548)
Collateralized Loan Obligation Securitization Debt		(2,969)
Total Liabilities		(5,498)
Total Liabilities and Equity		$ (5,498)

LOANS HELD FOR INVESTMENT - Dislcosures (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($) item	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
LOANS HELD FOR INVESTMENT.
Number of loans originated or co-originated \| item	38
Number of loans repaid or sold \| item	24
Amount funded	$ 229,900
Amount of repayments, excluding non-controlling interests held by third parties	410,600
Loans sold to third party	$ 74,625
Percentage of Loans Held for Investment Having LIBOR Floors	66.20%
Weighted average floor (as a percent)	0.24%
Loans held for investment
Total Commitment	$ 1,300,000
Loans held for investment	1,174,391	$ 1,462,584	$ 958,495
Carrying Amount	1,127,812	1,384,975
Outstanding Principal including non-controlling interest	1,180,421	1,472,890
Outstanding Principal	$ 1,133,842	$ 1,395,281
Interest Rate (as a percent)	5.30%	5.50%
Unleveraged effective yield (as a percent)	6.00%	6.00%
Remaining Life	1 year 10 months 24 days	2 years 9 months 18 days
Unleveraged effective yield dispositions, early prepayments or defaults	$ 0
Non-controlling interest investment
Loans held for investment
Loans held for investment	46,579	$ 77,609
Outstanding Principal including non-controlling interest	46,579	77,609
Senior mortgage loans.
Loans held for investment
Carrying Amount	961,395	1,156,476
Outstanding Principal	$ 965,578	$ 1,164,055
Interest Rate (as a percent)	4.40%	4.50%
Unleveraged effective yield (as a percent)	5.10%	5.00%
Remaining Life	1 year 4 months 24 days	2 years 1 month 6 days
Subordinated debt and preferred equity investments
Loans held for investment
Carrying Amount	$ 166,417	$ 228,499
Outstanding Principal	$ 168,264	$ 231,226
Interest Rate (as a percent)	10.60%	10.30%
Unleveraged effective yield (as a percent)	11.20%	10.70%
Remaining Life	5 years 1 month 6 days	6 years 1 month 6 days

LOANS HELD FOR INVESTMENT - Investment Portfolio (Details) $ in Thousands	1 Months Ended		12 Months Ended
	Jul. 31, 2015 USD ($)	Apr. 30, 2015	Dec. 31, 2015 USD ($) item	Dec. 31, 2014 USD ($)
Loans held for investment
Outstanding Principal			$ 1,133,842	$ 1,395,281
Carrying Amount			$ 1,127,812	$ 1,384,975
Unleveraged effective yield (as a percent)			6.00%	6.00%
Unleveraged effective yield dispositions, early prepayments or defaults			$ 0
Fixed interest rate (as a percent)			5.30%	5.50%
Office Building in TX
Loans held for investment
Outstanding Principal			$ 80,500
Carrying Amount			$ 80,000
Basis spread (as a percent)			5.00%
Unleveraged effective yield (as a percent)			6.20%
Base rate			30-day LIBOR
Retail Property in IL
Loans held for investment
Outstanding Principal			$ 75,900
Carrying Amount			$ 75,600
Basis spread (as a percent)		4.00%	4.00%
Unleveraged effective yield (as a percent)			4.80%
Base rate		30-day LIBOR	30-day LIBOR
LIBOR Floor due to modification (as a percent)		4.20%
Mixed use in IL
Loans held for investment
Outstanding Principal			$ 53,200
Carrying Amount			$ 52,700
Basis spread (as a percent)			3.60%
Unleveraged effective yield (as a percent)			4.40%
Base rate			30-day LIBOR
Office Building in FL
Loans held for investment
Outstanding Principal			$ 47,300
Carrying Amount			$ 47,300
Basis spread (as a percent)			5.25%
Unleveraged effective yield (as a percent)			5.60%
Base rate			30-day LIBOR
Multifamily in TX
Loans held for investment
Outstanding Principal			$ 44,700
Carrying Amount			$ 44,700
Basis spread (as a percent)			3.75%
Unleveraged effective yield (as a percent)			4.70%
Base rate			30-day LIBOR
Healthcare In NY
Loans held for investment
Outstanding Principal			$ 41,600
Carrying Amount			$ 41,400
Basis spread (as a percent)			5.00%
Unleveraged effective yield (as a percent)			5.90%
Base rate			30-day LIBOR
Industrial in MO and KS
Loans held for investment
Outstanding Principal			$ 37,400
Carrying Amount			$ 37,300
Basis spread (as a percent)			4.30%
Unleveraged effective yield (as a percent)			5.20%
Base rate			30-day LIBOR
Hotel in NY
Loans held for investment
Outstanding Principal			$ 36,500
Carrying Amount			$ 36,200
Basis spread (as a percent)			4.75%
Unleveraged effective yield (as a percent)			5.60%
Base rate			30-day LIBOR
Hotel in MI
Loans held for investment
Outstanding Principal			$ 35,200
Carrying Amount			$ 35,100
Basis spread (as a percent)			4.15%
Unleveraged effective yield (as a percent)			4.80%
Base rate			30-day LIBOR
Multifamily in TX
Loans held for investment
Outstanding Principal			$ 35,000
Carrying Amount			$ 35,000
Basis spread (as a percent)			3.75%
Unleveraged effective yield (as a percent)			4.70%
Base rate			30-day LIBOR
Office Building in FL
Loans held for investment
Outstanding Principal			$ 34,000
Carrying Amount			$ 33,900
Basis spread (as a percent)			3.65%
Unleveraged effective yield (as a percent)			4.30%
Base rate			30-day LIBOR
Industrial in OH
Loans held for investment
Outstanding Principal			$ 32,500
Carrying Amount			$ 32,300
Basis spread (as a percent)			4.20%
Unleveraged effective yield (as a percent)			5.00%
Base rate			30-day LIBOR
Retail Property in IL
Loans held for investment
Outstanding Principal			$ 30,400
Carrying Amount			$ 30,200
Basis spread (as a percent)			3.25%
Unleveraged effective yield (as a percent)			4.10%
Base rate			30-day LIBOR
Multifamily in NY
Loans held for investment
Outstanding Principal			$ 28,300
Carrying Amount			$ 28,200
Basis spread (as a percent)			3.75%
Unleveraged effective yield (as a percent)			4.70%
Base rate			30-day LIBOR
Multifamily in TX
Loans held for investment
Outstanding Principal			$ 27,600
Carrying Amount			$ 27,500
Basis spread (as a percent)			3.65%
Unleveraged effective yield (as a percent)			4.60%
Base rate			30-day LIBOR
Office Building in OR
Loans held for investment
Outstanding Principal			$ 28,400
Carrying Amount			$ 28,100
Basis spread (as a percent)			3.75%
Unleveraged effective yield (as a percent)			4.60%
Base rate			30-day LIBOR
Mixed use in NY
Loans held for investment
Outstanding Principal			$ 28,000
Carrying Amount			$ 27,900
Basis spread (as a percent)			4.25%
Unleveraged effective yield (as a percent)			5.00%
Base rate			30-day LIBOR
Office Building in KS
Loans held for investment
Outstanding Principal			$ 25,500
Carrying Amount			$ 25,500
Basis spread (as a percent)			5.00%
Unleveraged effective yield (as a percent)			5.90%
Base rate			30-day LIBOR
Multifamily in TX
Loans held for investment
Outstanding Principal			$ 25,000
Carrying Amount			$ 24,900
Basis spread (as a percent)			3.65%
Unleveraged effective yield (as a percent)			4.60%
Base rate			30-day LIBOR
Multifamily in TX
Loans held for investment
Outstanding Principal			$ 23,900
Carrying Amount			$ 23,800
Basis spread (as a percent)			3.80%
Unleveraged effective yield (as a percent)			4.40%
Base rate			30-day LIBOR
Multifamily in GA
Loans held for investment
Outstanding Principal			$ 23,100
Carrying Amount			$ 23,000
Basis spread (as a percent)			3.85%
Unleveraged effective yield (as a percent)			5.00%
Base rate			30-day LIBOR
Multifamily in AZ
Loans held for investment
Outstanding Principal			$ 22,100
Carrying Amount			$ 22,100
Basis spread (as a percent)			4.25%
Unleveraged effective yield (as a percent)			5.50%
Base rate			30-day LIBOR
Industrial in VA
Loans held for investment
Outstanding Principal			$ 19,000
Carrying Amount			$ 19,000
Basis spread (as a percent)			5.25%
Unleveraged effective yield (as a percent)			6.40%
Base rate			30-day LIBOR
Office Building in CO
Loans held for investment
Outstanding Principal			$ 18,700
Carrying Amount			$ 18,500
Basis spread (as a percent)			3.95%
Unleveraged effective yield (as a percent)			4.90%
Base rate			30-day LIBOR
Office Building in CA
Loans held for investment
Outstanding Principal			$ 15,900
Carrying Amount			$ 15,800
Basis spread (as a percent)			3.75%
Unleveraged effective yield (as a percent)			4.60%
Base rate			30-day LIBOR
Multifamily in NC
Loans held for investment
Outstanding Principal			$ 16,000
Carrying Amount			$ 15,900
Basis spread (as a percent)			4.00%
Unleveraged effective yield (as a percent)			5.00%
Base rate			30-day LIBOR
Office Building in CA
Loans held for investment
Outstanding Principal			$ 14,900
Carrying Amount			$ 14,900
Basis spread (as a percent)			4.50%
Unleveraged effective yield (as a percent)			5.50%
Base rate			30-day LIBOR
Multifamily in NY
Loans held for investment
Outstanding Principal			$ 14,900
Carrying Amount			$ 14,900
Basis spread (as a percent)			3.85%
Unleveraged effective yield (as a percent)			4.70%
Base rate			30-day LIBOR
Office Building in CA
Loans held for investment
Outstanding Principal			$ 14,500
Carrying Amount			$ 14,500
Basis spread (as a percent)			4.75%
Unleveraged effective yield (as a percent)			5.80%
Base rate			30-day LIBOR
Mixed use in NY
Loans held for investment
Outstanding Principal			$ 13,100
Carrying Amount			$ 13,000
Basis spread (as a percent)			3.95%
Unleveraged effective yield (as a percent)			5.00%
Base rate			30-day LIBOR
Multifamily in FL
Loans held for investment
Outstanding Principal			$ 12,300
Carrying Amount			$ 12,200
Basis spread (as a percent)			3.75%
Unleveraged effective yield (as a percent)			4.80%
Base rate			30-day LIBOR
Industrial in CA
Loans held for investment
Outstanding Principal			$ 10,100
Carrying Amount			$ 10,000
Basis spread (as a percent)			5.25%
Unleveraged effective yield (as a percent)			6.50%
Base rate			30-day LIBOR
Multifamily in GA and FL
Loans held for investment
Outstanding Principal			$ 50,800
Carrying Amount			$ 50,300
Basis spread (as a percent)			11.85%
Unleveraged effective yield (as a percent)			12.50%
Base rate			30-day LIBOR
Multifamily in NY
Loans held for investment
Outstanding Principal			$ 33,300
Carrying Amount			$ 33,200
Basis spread (as a percent)			8.07%
Unleveraged effective yield (as a percent)			8.80%
Base rate			30-day LIBOR
Office Building in GA
Loans held for investment
Outstanding Principal			$ 14,300
Carrying Amount			$ 14,300
Unleveraged effective yield (as a percent)			9.50%
Fixed interest rate (as a percent)			9.50%
Mixed use in NY
Loans held for investment
Outstanding Principal			$ 16,500
Carrying Amount			$ 16,400
Unleveraged effective yield (as a percent)			12.10%
Fixed interest rate (as a percent)			11.50%
Mixed use in NY \| PIK
Loans held for investment
Basis spread (as a percent)			9.00%
Fixed interest rate (as a percent)	15.00%
Increase in total commitment and outstanding principal amount	$ 650
Multifamily in TX
Loans held for investment
Outstanding Principal			$ 4,900
Carrying Amount			$ 4,800
Basis spread (as a percent)			11.00%
Unleveraged effective yield (as a percent)			11.80%
Base rate			30-day LIBOR
Multifamily in TX \| PIK
Loans held for investment
Basis spread (as a percent)			9.00%
Preferred return base rate			30-day LIBOR
Diversified Properties
Loans held for investment
Outstanding Principal			$ 48,500
Carrying Amount			$ 47,400
Unleveraged effective yield (as a percent)			11.70%
Fixed interest rate (as a percent)			10.95%
Multifamily GA And FL
Loans held for investment
Preferred return fixed interest rate (as a percent)			11.85%
Preferred return base rate			30-day LIBOR
Multifamily GA And FL \| PIK
Loans held for investment
Basis spread (as a percent)			2.00%
Minimum
Loans held for investment
Number of extension options \| item			1
Maximum
Loans held for investment
Number of extension options \| item			2

LOANS HELD FOR INVESTMENT - Portfolio Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Change in the activity of loan portfolio
Balance at the beginning of the period	$ 1,462,584	$ 958,495
Initial funding	159,348	637,222
Receipt of origination fees, net of costs	(1,078)	(7,026)
Additional funding	70,529	80,215
Amortizing payments	(601)
Loan payoffs	(446,745)	(209,983)
Loans sold to third parties (1)	(74,625)
Origination fee accretion	4,979	3,661	$ 2,366
Balance at the end of the period	1,174,391	1,462,584	958,495
Recognized gain or loss on sale	0
Impairment charges recognized	$ 0	$ 0	$ 0
Unleveraged effective yield (as a percent)	6.00%	6.00%
Senior mortgage loans
Change in the activity of loan portfolio
Unleveraged effective yield (as a percent)	4.90%
Transferred senior mortgage loan
Change in the activity of loan portfolio
Unleveraged effective yield (as a percent)	4.20%

MORTGAGE SERVICING RIGHTS (Details) $ in Thousands	12 Months Ended
MORTGAGE SERVICING RIGHTS (Details) $ in Thousands	Dec. 31, 2015 USD ($) item	Dec. 31, 2014 USD ($) item	Dec. 31, 2013 USD ($)
MORTGAGE SERVICING RIGHTS
Number of loans held under MSR portfolio \| item	973	976
Unpaid principal amount on servicing assets	$ 4,900,000	$ 4,100,000
Activity related to MSRs
Beginning balance	58,889	59,640
MSRs acquired in asset acquisition		1,259
MSRs purchased	549
Additions, following sale of loan	13,267	7,853
Change in fair value of mortgage servicing rights	(8,798)	(7,650)	$ (2,697)
Prepayments and write-offs	(2,107)	(2,213)
Ending balance	$ 61,800	58,889	$ 59,640
Discount rate (as a percent)	1.00%
Change in fair value of ACRE Capital's MSRs outstanding due to increase (decrease) in weighted average discount rate	$ 2,000	$ 1,800

INTANGIBLE ASSETS (Details) - USD ($) $ in Millions	12 Months Ended
INTANGIBLE ASSETS (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Intangible Assets
Carrying value	$ 6.0	$ 6.0
Impairment charges	0.0	$ 0.0
Freddie Mac Program Plus license
Intangible Assets
Carrying value	$ 1.0

DEBT - Disclsoures (Details) $ in Thousands					1 Months Ended		2 Months Ended	12 Months Ended
DEBT - Disclsoures (Details) $ in Thousands	Dec. 14, 2015	Dec. 13, 2015	Oct. 20, 2015	Aug. 13, 2014 USD ($) item	Dec. 31, 2015 USD ($) item	Jul. 31, 2015	Dec. 31, 2015 USD ($) item	Dec. 31, 2015 USD ($) item	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Jun. 01, 2015 USD ($)	Feb. 28, 2015 USD ($)	Nov. 25, 2014 USD ($)	Jul. 31, 2014 USD ($)
Funding agreements
Total Commitment					$ 1,397,243		$ 1,397,243	$ 1,397,243	$ 1,337,243
Outstanding balance					622,581		622,581	622,581	745,964
Outstanding Balance					522,775		522,775	522,775	552,799
Initial amount withdrawn from the maximum borrowing capacity								$ 75,000
Maximum
Funding agreements
Term of debt								10 years
March 2014 CNB Facility
Funding agreements
Total Commitment					50,000		50,000	$ 50,000	50,000
Outstanding Balance									42,000
July 2014 CNB Facility
Funding agreements
Total Commitment					75,000		75,000	75,000	75,000
Outstanding Balance					66,200		66,200	66,200	75,000
Secured term loan
Funding agreements
Total Commitment					$ 155,000		$ 155,000	$ 155,000
Interest rate (as a percent)					6.00%		6.00%	6.00%
Non-utilization threshold percentage (as a percent)					1.00%		1.00%	1.00%
Outstanding Balance					$ 75,000		$ 75,000	$ 75,000
Aggregate principal amount					155,000		155,000	155,000
Initial amount withdrawn from the maximum borrowing capacity					75,000
Amount of debt discount on the initial draw down amount					$ 1,100
Debt discount on initial draw down (as a percent)					8.40%
Remaining borrowing capacity					$ 80,000		$ 80,000	$ 80,000
LIBOR floor (as a percent)					1.00%		1.00%	1.00%
Non-utilization fee								$ 51
Secured term loan \| LIBOR
Funding agreements
Interest rate margin (as a percent)					6.00%
LIBOR floor (as a percent)					1.00%		1.00%	1.00%
Secured term loan \| Minimum
Funding agreements
Percentage of net proceeds raised in all future equity issuances used for computing the tangible net worth to be maintained								80.00%
Percentage of tangible net worth as of September 30, 2013 used for computing the tangible net worth to be maintained								80.00%
Percentage of tangible net worth required to be maintained (as a percent)					65.00%
Asset coverage ratio								110.00%
Unencumbered asset ratio								120.00%
Secured term loan \| Maximum
Funding agreements
Ratio of total debt to tangible net worth								4.00
Wells Fargo Facility
Funding agreements
Total Commitment					$ 225,000		$ 225,000	$ 225,000	225,000
Outstanding Balance					101,473		101,473	101,473	120,766
Wells Fargo Facility \| Secured revolving funding facility
Funding agreements
Total Commitment					$ 225,000		$ 225,000	$ 225,000
Variable interest basis	30 day LIBOR	30 day LIBOR
Non-utilization fee on average available balance (as a percent)								0.25%
Non-utilization threshold percentage (as a percent)					75.00%		75.00%	75.00%
Non-utilization /Commitment fee								$ 195	213	$ 218
Number of extension periods available for maturity date \| item					2		2	2
Extension period of maturity date								12 months
Wells Fargo Facility \| Secured revolving funding facility \| Minimum
Funding agreements
Specified amount for computing the tangible net worth to be maintained								$ 135,500
Fixed charge coverage ratio								1.25
Percentage of net proceeds raised in all future equity issuances used for computing the tangible net worth to be maintained								80.00%
Wells Fargo Facility \| Secured revolving funding facility \| Minimum \| 30 day LIBOR
Funding agreements
Interest rate margin (as a percent)	1.75%	2.00%
Wells Fargo Facility \| Secured revolving funding facility \| Maximum
Funding agreements
Ratio of total debt to tangible net worth								4.00
Ratio of recourse debt to tangible net worth								3.00
Wells Fargo Facility \| Secured revolving funding facility \| Maximum \| 30 day LIBOR
Funding agreements
Interest rate margin (as a percent)	2.35%	2.50%
Wells Fargo Facility \| Secured funding facility
Funding agreements
Period immediately preceding on the last date of the applicable reporting period for maintaining fixed charge coverage ratio								12 months
Citibank Facility
Funding agreements
Total Commitment					$ 250,000		$ 250,000	$ 250,000	250,000
Outstanding Balance					$ 112,827		$ 112,827	$ 112,827	93,432
Citibank Facility \| Secured revolving funding facility
Funding agreements
Variable interest basis								30 day LIBOR
Non-utilization fee on average available balance (as a percent)								0.25%
Non-utilization /Commitment fee								$ 369	316	164
Number of extension periods available for maturity date \| item					3		3	3
Extension period of maturity date								12 months
Liquidity to be maintained as a percentage of recourse indebtedness								5.00%
Citibank Facility \| Secured revolving funding facility \| Minimum
Funding agreements
Amount of liquidity to be maintained								$ 5,000
Percentage of net proceeds raised in all future equity issuances used for computing the tangible net worth to be maintained								80.00%
Percentage of tangible net worth as of September 30, 2013 used for computing the tangible net worth to be maintained								80.00%
Citibank Facility \| Secured revolving funding facility \| Minimum \| 30 day LIBOR
Funding agreements
Interest rate margin (as a percent)								2.00%
Citibank Facility \| Secured revolving funding facility \| Maximum
Funding agreements
Ratio of total debt to tangible net worth								4.00
Ratio of recourse debt to tangible net worth								3.00
Amount of liquidity to be maintained								$ 10,000
Fixed charge coverage ratio								1.25
Citibank Facility \| Secured revolving funding facility \| Maximum \| 30 day LIBOR
Funding agreements
Interest rate margin (as a percent)								2.50%
Citibank Facility \| Secured funding facility \| Minimum
Funding agreements
Period immediately preceding on the last date of the applicable reporting period for maintaining fixed charge coverage ratio								12 months
Capital One Facility
Funding agreements
Total Commitment									100,000
BAML Facility
Funding agreements
Total Commitment					$ 50,000		$ 50,000	$ 50,000
Variable interest basis								one-month LIBOR
Non-utilization fee on average available balance (as a percent)								0.125%
Non-utilization /Commitment fee								$ 37
Number of extension periods available for maturity date \| item					1		1	1
Extension period of maturity date								12 months
Term of debt								2 years
Period immediately preceding on the last date of the applicable reporting period for maintaining fixed charge coverage ratio								12 months
BAML Facility \| Secured funding facility \| Minimum
Funding agreements
Fixed charge coverage ratio								1.25
Percentage of net proceeds raised in all future equity issuances used for computing the tangible net worth to be maintained								80.00%
Percentage of tangible net worth as of September 30, 2013 used for computing the tangible net worth to be maintained								80.00%
BAML Facility \| Secured funding facility \| Minimum \| One-month LIBOR
Funding agreements
Interest rate margin (as a percent)								2.25%
BAML Facility \| Secured funding facility \| Maximum
Funding agreements
Ratio of total debt to tangible net worth								4.00
Ratio of recourse debt to tangible net worth								3.00
BAML Facility \| Secured funding facility \| Maximum \| One-month LIBOR
Funding agreements
Interest rate margin (as a percent)								2.75%
Fannie Mae \| ASAP Line of Credit \| ACRE Capital
Funding agreements
Total Commitment					$ 80,000		$ 80,000	$ 80,000	80,000
Outstanding Balance									58,469
Number of separate installments received \| item								2
Bank of America \| Secured revolving funding facility \| ACRC Lender C LLC \| ACRE Capital
Funding agreements
Total Commitment												$ 135,000
Bank of America \| BAML Line of Credit \| ACRC Lender C LLC
Funding agreements
Total Commitment					$ 135,000		$ 135,000	$ 135,000	180,000		$ 185,000		$ 80,000
Variable interest basis								LIBOR
Non-utilization fee on average available balance (as a percent)								0.125%
Non-utilization threshold percentage (as a percent)					40.00%		40.00%	40.00%
Non-utilization /Commitment fee								$ 76	84	$ 26
Outstanding Balance					$ 24,806		$ 24,806	$ 24,806	134,696
Maximum advances as a percentage of principal amounts of the mortgage loans originated by acquiree					100.00%		100.00%	100.00%
Bank of America \| BAML Line of Credit \| ACRC Lender C LLC \| LIBOR
Funding agreements
Interest rate margin (as a percent)								1.60%
City National Bank \| March 2014 CNB Facility
Funding agreements
Total Commitment					$ 50,000		$ 50,000	$ 50,000
Non-utilization fee on average available balance (as a percent)								0.375%
Non-utilization /Commitment fee								$ 177	82
Number of extension periods available for maturity date \| item					1		1	1
Extension period of maturity date								12 months
Period immediately preceding on the last date of the applicable reporting period for maintaining fixed charge coverage ratio								12 months
City National Bank \| March 2014 CNB Facility \| LIBOR for a one, two, three, six or 12-month
Funding agreements
Variable interest basis								LIBOR for a one, two, three, six or12-month
Interest rate margin (as a percent)								3.00%
City National Bank \| March 2014 CNB Facility \| Federal funds rate
Funding agreements
Variable interest basis								federal funds rate
Interest rate margin (as a percent)								0.50%
City National Bank \| March 2014 CNB Facility \| One-month LIBOR
Funding agreements
Variable interest basis								one month LIBOR
Interest rate margin (as a percent)								1.00%
City National Bank \| March 2014 CNB Facility \| Base rate
Funding agreements
Variable interest basis								base rate
Interest rate margin (as a percent)								1.25%
City National Bank \| March 2014 CNB Facility \| Minimum
Funding agreements
Interest rate (as a percent)					3.00%		3.00%	3.00%
Facility used on average (as a percent)								75.00%
Fixed charge coverage ratio								1.25
Percentage of net proceeds raised in all future equity issuances used for computing the tangible net worth to be maintained								80.00%
Percentage of tangible net worth as of September 30, 2013 used for computing the tangible net worth to be maintained								80.00%
City National Bank \| March 2014 CNB Facility \| Maximum
Funding agreements
Ratio of total debt to tangible net worth								4.00
Ratio of recourse debt to tangible net worth								3.00
City National Bank \| July 2014 CNB Facility
Funding agreements
Total Commitment														$ 75,000
Non-utilization fee on average available balance (as a percent)								0.125%
Non-utilization /Commitment fee								$ 4	15
Extension period of maturity date						12 months		12 months
Period immediately preceding on the last date of the applicable reporting period for maintaining fixed charge coverage ratio								12 months
City National Bank \| July 2014 CNB Facility \| LIBOR for a one, two, three, six or 12-month
Funding agreements
Variable interest basis								LIBOR for a one, two, three, six or 12-month
Interest rate margin (as a percent)								1.50%
City National Bank \| July 2014 CNB Facility \| Federal funds rate
Funding agreements
Variable interest basis								federal funds rate
Interest rate margin (as a percent)								0.50%
City National Bank \| July 2014 CNB Facility \| One-month LIBOR
Funding agreements
Variable interest basis								one month LIBOR
Interest rate margin (as a percent)								1.00%
City National Bank \| July 2014 CNB Facility \| Base rate
Funding agreements
Variable interest basis								base rate
Interest rate margin (as a percent)								0.25%
City National Bank \| July 2014 CNB Facility \| Minimum
Funding agreements
Interest rate (as a percent)					1.50%		1.50%	1.50%
Facility used on average (as a percent)								75.00%
Fixed charge coverage ratio								1.25
Percentage of net proceeds raised in all future equity issuances used for computing the tangible net worth to be maintained								80.00%
Percentage of tangible net worth as of September 30, 2013 used for computing the tangible net worth to be maintained								80.00%
City National Bank \| July 2014 CNB Facility \| Maximum
Funding agreements
Ratio of total debt to tangible net worth								4.00
Ratio of recourse debt to tangible net worth								3.00
Met Life
Funding agreements
Total Commitment					$ 180,000		$ 180,000	$ 180,000	180,000
Outstanding Balance					109,474		109,474	$ 109,474	144,673
Met Life \| Revolving master repurchase facility
Funding agreements
Total Commitment				$ 180,000
Variable interest basis								30 day LIBOR
Number of extension periods available for maturity date \| item				2
Extension period of maturity date				12 months
Period immediately preceding on the last date of the applicable reporting period for maintaining fixed charge coverage ratio								12 months
Met Life \| Revolving master repurchase facility \| 30 day LIBOR
Funding agreements
Interest rate margin (as a percent)								2.35%
Met Life \| Revolving master repurchase facility \| Minimum
Funding agreements
Fixed charge coverage ratio								1.25
Percentage of net proceeds raised in all future equity issuances used for computing the tangible net worth to be maintained								80.00%
Percentage of tangible net worth as of September 30, 2013 used for computing the tangible net worth to be maintained								80.00%
Met Life \| Revolving master repurchase facility \| Maximum
Funding agreements
Ratio of total debt to tangible net worth								4.00
Ratio of recourse debt to tangible net worth								3.00
April 2014 UBS facility
Funding agreements
Total Commitment					140,000		140,000	$ 140,000	140,000
Outstanding Balance					75,558		75,558	75,558	19,685
April 2014 UBS facility \| Revolving master repurchase facility
Funding agreements
Total Commitment					140,000		$ 140,000	$ 140,000
Variable interest basis								one-month LIBOR
Interest rate margin (as a percent)			1.88%
Period immediately preceding on the last date of the applicable reporting period for maintaining fixed charge coverage ratio								12 months
April 2014 UBS facility \| Revolving master repurchase facility \| Minimum
Funding agreements
Fixed charge coverage ratio								1.25
Percentage of net proceeds raised in all future equity issuances used for computing the tangible net worth to be maintained								80.00%
Percentage of tangible net worth as of September 30, 2013 used for computing the tangible net worth to be maintained								80.00%
April 2014 UBS facility \| Revolving master repurchase facility \| Maximum
Funding agreements
Ratio of total debt to tangible net worth								4.00
Ratio of recourse debt to tangible net worth								3.00
April 2014 UBS facility \| Revolving master repurchase facility \| Assets subject to an advance for one year or less \| One-month LIBOR
Funding agreements
Interest rate margin (as a percent)								1.88%
April 2014 UBS facility \| Revolving master repurchase facility \| Assets subject to an advance in excess of one year but less than two years
Funding agreements
Interest rate margin (as a percent)							2.08%
April 2014 UBS facility \| Revolving master repurchase facility \| Assets subject to an advance for greater than two years
Funding agreements
Interest rate margin (as a percent)							2.28%
December 2014 UBS facility
Funding agreements
Total Commitment					57,243		$ 57,243	$ 57,243	57,243
Outstanding Balance					57,243		57,243	57,243	$ 57,243
December 2014 UBS facility \| Global master repurchase facility
Funding agreements
Total Commitment					$ 57,200		$ 57,200	$ 57,200
Variable interest basis								one-month LIBOR
Period immediately preceding on the last date of the applicable reporting period for maintaining fixed charge coverage ratio								12 months
December 2014 UBS facility \| Global master repurchase facility \| One-month LIBOR
Funding agreements
Interest rate margin (as a percent)								2.74%
December 2014 UBS facility \| Global master repurchase facility \| Minimum
Funding agreements
Fixed charge coverage ratio								1.25
Percentage of net proceeds raised in all future equity issuances used for computing the tangible net worth to be maintained								80.00%
Percentage of tangible net worth as of September 30, 2013 used for computing the tangible net worth to be maintained								80.00%
December 2014 UBS facility \| Global master repurchase facility \| Maximum
Funding agreements
Ratio of total debt to tangible net worth								4.00
Ratio of recourse debt to tangible net worth								3.00

DEBT - Maturity Schedule (Details) - USD ($) $ in Thousands		1 Months Ended	12 Months Ended
DEBT - Maturity Schedule (Details) - USD ($) $ in Thousands	Jun. 26, 2013	Dec. 31, 2012	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 19, 2012
Convertible Senior Notes
Carrying value of unsecured debt				$ 67,414
Principal maturities of secured funding agreements and unsecured debt
2016			$ 362,549
2017			109,474
2018			150,558
Total			622,581
Wells Fargo Facility
Principal maturities of secured funding agreements and unsecured debt
2016			101,473
Total			101,473
Citibank Facility
Principal maturities of secured funding agreements and unsecured debt
2016			112,827
Total			112,827
Met Life
Principal maturities of secured funding agreements and unsecured debt
2017			109,474
Total			109,474
April 2014 UBS facility
Principal maturities of secured funding agreements and unsecured debt
2018			75,558
Total			75,558
December 2014 UBS facility
Principal maturities of secured funding agreements and unsecured debt
2016			57,243
Total			57,243
July 2014 CNB Facility
Principal maturities of secured funding agreements and unsecured debt
2016			66,200
Total			66,200
2015 Convertible Notes
Convertible Senior Notes
Aggregate principal amount		$ 69,000
Principle amount issued to initial purchasers		60,500
Amount issued to initial purchasers' exercise in full of their overallotment option		9,000
Principle amount issued to certain directors, officers and affiliates		8,500
Net proceeds		66,200
Initial purchasers' discount	$ 1,500	2,100
Aggregate estimated offering expenses		$ 2,800
Carrying value of unsecured debt				$ 67,400
Interest rate (as a percent)						7.00%
Effective interest rate used to amortize the debt discount				9.40%
Interest expense incurred			6,200	$ 6,300	$ 6,200
Initial value of derivative liability	$ 1,700
Percentage of accretion of Original issue discount and associated costs	9.40%
Conversion option's cumulative value	$ 86
Principal maturities of secured funding agreements and unsecured debt
2018			75,000
Total			75,000
2015 Convertible Notes \| Minimum
Convertible Senior Notes
Percentage of common stock issued on conversion without shareholder's approval	20.00%
BAML Line of Credit
Principal maturities of secured funding agreements and unsecured debt
2016			24,806
Total			$ 24,806

ALLOWANCE FOR LOSS SHARING (Details) $ in Thousands	12 Months Ended
ALLOWANCE FOR LOSS SHARING (Details) $ in Thousands	Dec. 31, 2015 USD ($) item	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Summary of the Company's allowance for loss sharing
Beginning balance	$ 12,349	$ 16,480
Current period provision for loss sharing	(1,093)	(1,364)	$ 6
Settlements/Writeoffs	(2,287)	(2,767)
Ending balance	8,969	12,349	$ 16,480
Fannie Mae DUS license
Allowance for loss sharing
Maximum quantifiable allowance for loss sharing	1,100,000	1,100,000
Maximum quantifiable recourse liability at risk pool	3,200,000	3,200,000
Maximum quantifiable recourse liability non-at risk pool	$ 855	2,000
Fannie Mae master loss sharing agreement \| Loss Level I
Allowance for loss sharing
Loss sharing on the basis of Pari Passu Loss Sharing (as a percent)	66.67%
Fannie Mae master loss sharing agreement \| ACRE Capital
Allowance for loss sharing
Maximum period considered for increase in risk-sharing obligation if loan defaulted after purchase	12 months
Absorption of losses under certain limited circumstances (as a percent)	100.00%
Contributions for reimbursement obligation	$ 377	$ 494
Number of twelve months periods following closing date considered for reimbursement \| item	3
Period following closing date considered for reimbursement	12 months
Percentage of amounts due and owing after closing date that sellers are obligated to fund directly (if permitted) or to reimburse	80.00%
Threshold limit of allowance for loss sharing pursuant to which sellers obligation arise to fund directly (if permitted) or to reimburse	$ 2,000
Sellers obligations for the entire three (3) year period	$ 3,000
Period considered in determination of maximum sellers obligations	3 years
Delinquent period	60 days
Fannie Mae master loss sharing agreement \| ACRE Capital \| Loss Level I
Allowance for loss sharing
Loss sharing on the basis of Pari Passu Loss Sharing (as a percent)	33.33%
Maximum risk-sharing obligation as a percentage of original principal amount of the loan	33.33%
Fannie Mae master loss sharing agreement \| ACRE Capital \| Loss Level II
Allowance for loss sharing
Maximum risk-sharing obligation as a percentage of original principal amount of the loan	30.00%
Fannie Mae master loss sharing agreement \| ACRE Capital \| Loss Level III
Allowance for loss sharing
Maximum risk-sharing obligation as a percentage of original principal amount of the loan	40.00%

COMMITMENTS AND CONTINGENCIES - Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
COMMITMENTS AND CONTINGENCIES
Total commitments	$ 1,232,163	$ 1,565,117
Less: funded commitments	(1,133,842)	(1,395,281)
Total unfunded commitments	$ 98,321	$ 169,836

COMMITMENTS AND CONTINGENCIES - Loan Commitments (Details) - ACRE Capital - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Loan commitments
Commitments and Contingencies
Commitments	$ 237,372	$ 249,803
Commitments to fund loans
Commitments and Contingencies
Commitments	$ 207,566	$ 51,109

COMMITMENTS AND CONTINGENCIES - Lease Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Lease Commitments
Rent expense	$ 844	$ 983	$ 230
Future minimum payments under operating lease
2016	775
2017	853
2018	837
2019	772
2020	754
Thereafter	1,026
Total	$ 5,017
ACRE Capital \| Maximum
Lease Commitments
Lease term	1 year
ACRE Capital \| Minimum
Lease Commitments
Lease term	5 years

DERIVATIVES (Details) $ in Thousands			1 Months Ended		12 Months Ended
DERIVATIVES (Details) $ in Thousands	Aug. 30, 2013 USD ($)	Jun. 26, 2013	Jul. 31, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($) item	Dec. 31, 2014 USD ($) loan item
ACRE Capital
Derivatives
Purchase price for servicing rights	$ 60,900		$ 325	$ 500
2015 Convertible Notes
Derivatives
Derivatives in liability position, Fair Value					$ 0	$ 0
2015 Convertible Notes \| Minimum
Derivatives
Percentage of common stock issued on conversion without shareholder's approval		20.00%
Non-designated Hedges
Derivatives
Derivatives assets net of liabilities					$ 6,937	$ 1,670
Non-designated Hedges \| Loan commitments
Derivatives
Number of Instruments \| item					87	36
Number of contracts entered into by the company					16	1
Notional amount					$ 207,600	$ 51,100
Non-designated Hedges \| Loan commitments \| Other assets.
Derivatives
Derivatives in asset position, Fair Value					$ 8,450	$ 3,082
Non-designated Hedges \| Forward sale commitments
Derivatives
Number of Instruments \| item					87	36
Number of contracts entered into by the company \| item					24	10
Notional amount					$ 237,400	$ 249,800
Non-designated Hedges \| Forward sale commitments \| Minimum
Derivatives
Maturity term					25 days	9 days
Non-designated Hedges \| Forward sale commitments \| Maximum
Derivatives
Maturity term					17 months	23 months
Non-designated Hedges \| Forward sale commitments \| Other assets.
Derivatives
Derivatives in asset position, Fair Value					$ 25	$ 116
Non-designated Hedges \| Forward sale commitments \| Other liabilities.
Derivatives
Derivatives in liability position, Fair Value					(1,868)	$ (1,528)
Non-designated Hedges \| MSR purchase commitment \| Other assets.
Derivatives
Derivatives in asset position, Fair Value					$ 330

EQUITY - Public Offerings (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		12 Months Ended
	Jul. 31, 2013	Jun. 30, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
EQUITY
Common shares issued	601,590	18,000,000	0	0	18,601,590
Common stock price (in dollars per share)	$ 13.50	$ 13.50
Proceeds from issuance of common stock	$ 7.7	$ 234.6			$ 242.3
Number of additional shares of common stock to be purchased under the option granted to underwriters	2,700,000
Common stock shares issued in public or private offerings			0	0

EQUITY - Disclosures (Details) - USD ($) $ in Thousands	12 Months Ended
EQUITY - Disclosures (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Apr. 23, 2012
Equity Incentive Plan
Number of shares of common stock that may granted under the plan					690,000
Percentage of issued and outstanding shares of common stock eligible to be granted under the plan				7.50%
Restricted stock activity
Balance at the beginning of the period (in shares)	110,914
Granted (in shares)	25,555
Vested (in shares)	(49,455)
Forfeited (in shares)	(2,820)
Balance at the end of the period (in shares)	84,194	110,914
Future Anticipated Vesting Schedule
2016 (in shares)	51,178
2017 (in shares)	834
Total (in shares)	52,012
Activity in the Company's vested and nonvested shares of restricted stock
Compensation expense included in compensation and benefits	$ 835	$ 939	$ 524
Total fair value of shares vested	586	534	458
Weighted average grant date fair value	299	1,329	687
Total compensation cost related to non-vested awards that have not yet been recognized	$ 494,000	$ 1,100
Weighted-average period over which non-vested awards are expected to be recognized	1 year 7 months 2 days	2 years 7 months 6 days
Non-controlling interest
Amount allocated to non-controlling interest	$ 47,017	$ 77,932
ACRC KA Investor LLC
Non-controlling interest
Total equity of VIE	96,000	170,700
VIE equity owned by the company	49,000	92,800
Amount allocated to non-controlling interest	$ 47,000	$ 77,900
Restricted stock
Equity Incentive Plan
Shares Granted	245,939
Restricted stock \| Maximum
Equity Incentive Plan
Award vesting period	4 years
Restricted stock \| Minimum
Equity Incentive Plan
Award vesting period	1 year
Restricted stock \| Directors
Restricted stock activity
Balance at the beginning of the period (in shares)	21,324
Granted (in shares)	25,555
Vested (in shares)	(27,114)
Forfeited (in shares)	(2,820)
Balance at the end of the period (in shares)	16,945	21,324
Future Anticipated Vesting Schedule
2016 (in shares)	16,111
2017 (in shares)	834
Total (in shares)	16,945
Activity in the Company's vested and nonvested shares of restricted stock
Compensation expense included in compensation and benefits	$ 330	$ 445	408
Total fair value of shares vested	313	399	366
Weighted average grant date fair value	$ 299	$ 385	289
Restricted stock \| Officer
Restricted stock activity
Balance at the beginning of the period (in shares)	10,936
Vested (in shares)	(6,250)
Balance at the end of the period (in shares)	4,686	10,936
Future Anticipated Vesting Schedule
2016 (in shares)	4,686
Total (in shares)	4,686
Activity in the Company's vested and nonvested shares of restricted stock
Compensation expense included in compensation and benefits	$ 106	$ 106	106
Total fair value of shares vested	$ 72	$ 79	92
Restricted stock \| Employees
Restricted stock activity
Balance at the beginning of the period (in shares)	78,654
Vested (in shares)	(16,091)
Balance at the end of the period (in shares)	62,563	78,654
Future Anticipated Vesting Schedule
2016 (in shares)	30,381
Total (in shares)	30,381
Activity in the Company's vested and nonvested shares of restricted stock
Compensation expense included in compensation and benefits	$ 399	$ 388	10
Total fair value of shares vested	$ 201	56
Weighted average grant date fair value		$ 944	$ 398
Restricted stock \| May 1, 2012
Equity Incentive Plan
Shares Granted	35,135
Restricted stock \| June 18, 2012
Equity Incentive Plan
Shares Granted	7,027
Restricted stock \| July 9, 2012
Equity Incentive Plan
Shares Granted	25,000
Restricted stock \| June 26, 2013
Equity Incentive Plan
Shares Granted	22,526
Restricted stock \| November 25, 2013
Equity Incentive Plan
Shares Granted	30,381
Restricted stock \| January 31, 2014
Equity Incentive Plan
Shares Granted	48,273
Restricted stock \| February 26, 2014
Equity Incentive Plan
Shares Granted	12,030
Restricted stock \| February 27, 2014
Equity Incentive Plan
Shares Granted	22,354
Restricted stock \| June 24, 2014
Equity Incentive Plan
Shares Granted	17,658
Restricted stock \| June 24, 2015
Equity Incentive Plan
Shares Granted	25,555

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
EARNINGS PER SHARE
Net income attributable to common stockholders	$ 8,877	$ 9,379	$ 8,967	$ 7,062	$ 8,901	$ 4,102	$ 6,638	$ 4,755	$ 34,285	$ 24,396	$ 13,766
Divided by:
Basic weighted average shares of common stock outstanding (in shares)									28,501,897	28,459,309	18,989,500
Non-vested restricted stock (in shares)									95,671	125,713	48,652
Diluted weighted average shares of common stock outstanding (in shares)									28,597,568	28,585,022	19,038,152
Basic earnings per common share (in dollars per share)	$ 0.31	$ 0.33	$ 0.31	$ 0.25	$ 0.31	$ 0.14	$ 0.23	$ 0.17	$ 1.20	$ 0.86	$ 0.72
Diluted earnings per common share (in dollars per share)	$ 0.31	$ 0.33	$ 0.31	$ 0.25	$ 0.31	$ 0.14	$ 0.23	$ 0.17	$ 1.20	$ 0.85	$ 0.72

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

INCOME TAX (Details) $ in Thousands	12 Months Ended
INCOME TAX (Details) $ in Thousands	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Oct. 31, 2014 USD ($) item
Components of the company's income tax provision
Deferred	$ 2,093	$ 93	$ 61
Total income tax expense (benefit)	1,928	(1,043)	176
Deferred tax asset
Net operating loss carryforward	7,800
Reconciliation of the Company's effective tax rate to the Company's statutory federal income tax rate
Outstanding Balance	522,775	552,799
TRS'
Components of the company's income tax provision
Current	(165)	329	115
Deferred	2,093	(1,372)	61
Total income tax expense (benefit)	1,928	(1,043)	$ 176
Deferred tax asset
Mortgage servicing rights	4,083	2,844
Net operating loss carryforward	2,906	1,465
Other temporary differences	1,762	1,055
Sub-total-deferred tax assets	8,751	5,364
Deferred tax liabilities
Basis difference in assets from acquisition of ACRE Capital	(2,709)	(2,654)
Components of gains from mortgage banking activities	(9,344)	(4,046)
Amortization of intangible assets	(297)	(170)
Sub-total-deferred tax liabilities	(12,350)	(6,870)
Net deferred tax liability	$ (3,599)	$ (1,506)
Reconciliation of the Company's effective tax rate to the Company's statutory federal income tax rate
Federal statutory rate (as a percent)	35.00%	35.00%	35.00%
State income taxes (as a percent)	3.60%	2.40%	5.70%
Federal benefit of state tax deduction (as a percent)	(1.30%)	(0.80%)	(2.00%)
Effective tax rate (as a percent)	37.30%	36.60%	38.70%
Reconciliation of the Company's federal income tax determined using the Company's statutory federal tax rate to the Company's reported income tax provision
Operating loss carryforward period	20 years
TRS' \| Notes Receivable and Revolving Promissory Note Receivable
Reconciliation of the Company's effective tax rate to the Company's statutory federal income tax rate
Outstanding Balance	$ 51,900	$ 50,900
TRS' \| Notes Receivable
Reconciliation of the Company's effective tax rate to the Company's statutory federal income tax rate
Capitalized amount	$ 44,000
TRS' \| Revolving Promissory Note
Reconciliation of the Company's effective tax rate to the Company's statutory federal income tax rate
Capitalized amount				$ 8,000
TRS' \| Notes
Reconciliation of the Company's effective tax rate to the Company's statutory federal income tax rate
Number of Notes \| item				2

FAIR VALUE OF FINANCIAL INSTRUMENTS - Financial Instruments Reported at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Levels in the fair value hierarchy into which the financial instruments were categorized
Loans held for sale	$ 30,612	$ 203,006
Transfer of asset from level 1 to level 2	0	0
Transfer of asset from level 2 to level 1	0	0
Transfer of liabilities from level 1 to level 2	0	0
Transfer of liabilities from level 2 to level 1	0	0
Recurring basis
Levels in the fair value hierarchy into which the financial instruments were categorized
Loans held for sale	30,612	203,006
Recurring basis \| Mortgage servicing rights
Levels in the fair value hierarchy into which the financial instruments were categorized
Derivative assets	61,800	58,889
Recurring basis \| Loan commitments
Levels in the fair value hierarchy into which the financial instruments were categorized
Derivative assets	8,450	3,082
Recurring basis \| Forward sale commitments
Levels in the fair value hierarchy into which the financial instruments were categorized
Derivative assets	25	116
Derivative liabilities	(1,868)	(1,528)
Recurring basis \| MSR purchase commitment
Levels in the fair value hierarchy into which the financial instruments were categorized
Derivative assets	330
Recurring basis \| Level II
Levels in the fair value hierarchy into which the financial instruments were categorized
Loans held for sale	30,612	203,006
Recurring basis \| Level III \| Mortgage servicing rights
Levels in the fair value hierarchy into which the financial instruments were categorized
Derivative assets	61,800	58,889
Recurring basis \| Level III \| Loan commitments
Levels in the fair value hierarchy into which the financial instruments were categorized
Derivative assets	8,450	3,082
Recurring basis \| Level III \| Forward sale commitments
Levels in the fair value hierarchy into which the financial instruments were categorized
Derivative assets	25	116
Derivative liabilities	(1,868)	$ (1,528)
Recurring basis \| Level III \| MSR purchase commitment
Levels in the fair value hierarchy into which the financial instruments were categorized
Derivative assets	$ 330

FAIR VALUE OF FINANCIAL INSTRUMENTS - Level III (Details) - Level III - Discounted cash flow - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Mortgage servicing rights
Fair Value Measurements
Derivative assets	$ 61,800	$ 58,889
Mortgage servicing rights \| Minimum
Fair Value Measurements
Discount rate (as a percent)	8.00%	8.00%
Mortgage servicing rights \| Maximum
Fair Value Measurements
Discount rate (as a percent)	14.00%	14.00%
Mortgage servicing rights \| Weighted Average
Fair Value Measurements
Discount rate (as a percent)	11.10%	11.40%
Loan commitments
Fair Value Measurements
Derivative assets	$ 6,607	$ 1,670
Loan commitments \| Minimum
Fair Value Measurements
Discount rate (as a percent)	8.00%	8.00%
Loan commitments \| Maximum
Fair Value Measurements
Discount rate (as a percent)	12.00%	8.00%
Loan commitments \| Weighted Average
Fair Value Measurements
Discount rate (as a percent)	8.20%	8.00%
MSR purchase commitment
Fair Value Measurements
Derivative assets	$ 330
Discount rate (as a percent)	8.00%
MSR purchase commitment \| Weighted Average
Fair Value Measurements
Discount rate (as a percent)	8.00%

FAIR VALUE OF FINANCIAL INSTRUMENTS - Change in Level III (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Change in derivative instruments classified as Level III
Balance at the beginning of the period	$ 1,670	$ 3,527
Settlements	(23,675)	(8,893)
Balance at the end of the period	6,937	1,670
Gains from mortgage banking activities
Change in derivative instruments classified as Level III
Realized gains (losses) recorded in net income	22,005	5,366
Unrealized gains (losses) recorded in net income	$ 6,937	$ 1,670

FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying Value and Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Carrying value and estimated fair value of the financial assets on the consolidated balance sheet
Loans held for investment	$ 1,127,812	$ 1,384,975
Financial Liabilities:
Convertible notes		67,414
Debt issued by consolidated VIE	61,815	217,495
Carrying Value
Carrying value and estimated fair value of the financial assets on the consolidated balance sheet
Loans held for investment	1,174,391	1,462,584
Financial Liabilities:
Secured financing agreements	522,775	552,799
Warehouse line of credit	24,806	193,165
Secured term loan	69,762
Convertible notes		67,414
Carrying Value \| Offered Certificates
Financial Liabilities:
Debt issued by consolidated VIE	61,815	217,495
Carrying Value \| Offered Notes
Financial Liabilities:
Debt issued by consolidated VIE	192,528	305,734
Total \| Level II
Financial Liabilities:
Secured financing agreements	522,775	552,799
Warehouse line of credit	24,806	193,165
Secured term loan	75,000
Convertible notes		69,000
Total \| Level III
Carrying value and estimated fair value of the financial assets on the consolidated balance sheet
Loans held for investment	1,180,421	1,472,891
Total \| Level III \| Offered Certificates
Financial Liabilities:
Debt issued by consolidated VIE	61,856	219,043
Total \| Level III \| Offered Notes
Financial Liabilities:
Debt issued by consolidated VIE	$ 193,419	$ 308,703

RELATED PARTY TRANSACTIONS (Details) - USD ($)		1 Months Ended		3 Months Ended						12 Months Ended
RELATED PARTY TRANSACTIONS (Details) - USD ($)	May. 01, 2012	Jul. 31, 2015	Jul. 31, 2014	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
RELATED PARTY TRANSACTIONS
Amount owed by the entity to related party				$ 2,735,000						$ 2,658,000	$ 2,735,000
July 2014 CNB Facility \| City National Bank
RELATED PARTY TRANSACTIONS
Extension period of maturity date		12 months								12 months
Restricted Costs \| Maximum
RELATED PARTY TRANSACTIONS
Costs to be reimbursed per quarter				1,000,000	$ 1,000,000	$ 1,000,000	$ 1,000,000	$ 1,000,000	$ 1,000,000
ACREM
RELATED PARTY TRANSACTIONS
Base management fees as a percentage of stockholders' equity per annum										1.50%
Percentage multiplied to arrive at first value affecting calculation of incentive fees										20.00%
Previous period for which core earnings are considered to arrive at first value affecting calculation of incentive fees										12 months
Previous period for product of weighted average price per share and weighted average number of shares of common stock and other shares											12 months
Percentage multiplied to arrive at difference of first value affecting calculation of incentive fees										8.00%
Number of fiscal quarters considered to arrive at second value affecting calculation of incentive fees										12 months
Period whose fiscal quarters are considered to arrive at first value affecting calculation of incentive fees										12 months
Incentive fee payable										$ 0
Minimum cumulative core earnings				0							$ 0
Period for which cumulative core earnings must be greater than zero										3 years
Automatic renewal period of management agreement										1 year
Incentive fees incurred										$ 0	0	$ 0
Multiplier of average annual base management and incentive fee to arrive at termination fee										3
Period preceding most recently completed fiscal quarter considered for calculation of average of annual base management and incentive fee										24 months
Incurred										$ 11,315,000	10,777,000	8,620,000
Amount owed by the entity to related party				2,735,000						2,658,000	2,735,000
ACREM \| Management Fees
RELATED PARTY TRANSACTIONS
Incurred										5,948,000	5,916,000	4,241,000
Amount owed by the entity to related party				1,471,000						1,501,000	1,471,000
ACREM \| General and administrative expenses
RELATED PARTY TRANSACTIONS
Incurred										3,878,000	4,000,000	3,610,000
Amount owed by the entity to related party				1,000,000						919,000	1,000,000
ACREM \| Direct costs
RELATED PARTY TRANSACTIONS
Incurred										1,489,000	861,000	$ 769,000
Amount owed by the entity to related party				$ 264,000						238,000	264,000
ACREM \| Servicing Fees
RELATED PARTY TRANSACTIONS
Incurred	$ 0
Ares Investments Holdings LLC
RELATED PARTY TRANSACTIONS
Aggregate principal amount											1,200,000
Ares Investments Holdings LLC \| Secured revolving funding facility \| City National Bank
RELATED PARTY TRANSACTIONS
Credit support fee agreed to be paid as percentage of average outstanding balance (as a percent)			1.50%
Credit support fee incurred										$ 1,000,000	$ 278,000

DIVIDENDS AND DISTRIBUTIONS (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
DIVIDENDS AND DISTRIBUTIONS
Dividend per share amount declared (in dollars per share)	$ 1.00	$ 1.00	$ 1.00
Dividends per share amount paid (in dollars per share)	$ 1.00	$ 1.00	$ 1.00
Total cash dividends	$ 28,603	$ 28,597	$ 23,385
November 5, 2015
DIVIDENDS AND DISTRIBUTIONS
Dividend per share amount declared (in dollars per share)	$ 0.25
Dividends per share amount paid (in dollars per share)	$ 0.25
Total cash dividends	$ 7,152
July 30, 2015
DIVIDENDS AND DISTRIBUTIONS
Dividend per share amount declared (in dollars per share)	$ 0.25
Dividends per share amount paid (in dollars per share)	$ 0.25
Total cash dividends	$ 7,152
May 07,2015
DIVIDENDS AND DISTRIBUTIONS
Dividend per share amount declared (in dollars per share)	$ 0.25
Dividends per share amount paid (in dollars per share)	$ 0.25
Total cash dividends	$ 7,152
March 5, 2015
DIVIDENDS AND DISTRIBUTIONS
Dividend per share amount declared (in dollars per share)	$ 0.25
Dividends per share amount paid (in dollars per share)	$ 0.25
Total cash dividends	$ 7,146
November 10, 2014
DIVIDENDS AND DISTRIBUTIONS
Dividend per share amount declared (in dollars per share)		$ 0.25
Dividends per share amount paid (in dollars per share)		$ 0.25
Total cash dividends		$ 7,147
August 6, 2014
DIVIDENDS AND DISTRIBUTIONS
Dividend per share amount declared (in dollars per share)		$ 0.25
Dividends per share amount paid (in dollars per share)		$ 0.25
Total cash dividends		$ 7,151
May 07 ,2014
DIVIDENDS AND DISTRIBUTIONS
Dividend per share amount declared (in dollars per share)		$ 0.25
Dividends per share amount paid (in dollars per share)		$ 0.25
Total cash dividends		$ 7,151
March 17, 2014
DIVIDENDS AND DISTRIBUTIONS
Dividend per share amount declared (in dollars per share)		$ 0.25
Dividends per share amount paid (in dollars per share)		$ 0.25
Total cash dividends		$ 7,147
November 13, 2013
DIVIDENDS AND DISTRIBUTIONS
Dividend per share amount declared (in dollars per share)			$ 0.25
Dividends per share amount paid (in dollars per share)			$ 0.25
Total cash dividends			$ 7,127
August 7, 2013
DIVIDENDS AND DISTRIBUTIONS
Dividend per share amount declared (in dollars per share)			$ 0.25
Dividends per share amount paid (in dollars per share)			$ 0.25
Total cash dividends			$ 7,119
May 15, 2013
DIVIDENDS AND DISTRIBUTIONS
Dividend per share amount declared (in dollars per share)			$ 0.25
Dividends per share amount paid (in dollars per share)			$ 0.25
Total cash dividends			$ 6,822
March 14, 2013
DIVIDENDS AND DISTRIBUTIONS
Dividend per share amount declared (in dollars per share)			$ 0.25
Dividends per share amount paid (in dollars per share)			$ 0.25
Total cash dividends			$ 2,317

VARIABLE INTEREST ENTITIES (Details) $ in Thousands			12 Months Ended
VARIABLE INTEREST ENTITIES (Details) $ in Thousands	Aug. 15, 2014 USD ($) item	Nov. 01, 2013 USD ($) item	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 19, 2014 USD ($) property
Variable Interest Entities
Outstanding Principal			$ 1,133,842	$ 1,395,281
Variable Interest Entity Mortgage Loans on Real Estate Commercial and Consumer Net			483,572	848,224
Issuer
Variable Interest Entities
Preferred equity fully funded amount	$ 32,700
Primary beneficiary
Carrying value and the maximum exposure of unconsolidated VIEs
Maximum exposure to loss			168,800	168,800
Not primary beneficiary
Carrying value and the maximum exposure of unconsolidated VIEs
Carrying value			55,144	38,982
Maximum exposure to loss			55,704	39,608
Offered Certificates
Variable Interest Entities
Aggregate principal amount			61,900	219,000
Principal amount of certificates retained by wholly owned subsidiary of the entity		$ 98,800
Interest expense			7,600	9,100
Offered Notes
Variable Interest Entities
Interest expense			7,600	9,100
Offered Notes \| Issuer
Variable Interest Entities
Aggregate principal amount			$ 193,400	$ 308,700
Principal amount of certificates retained by wholly owned subsidiary of the entity	37,400
Outstanding Principal	$ 346,100
Depositor \| Commercial Mortgage Pass-Through Certificates (the "Certificates")
Variable Interest Entities
Aggregate principal amount		$ 493,800
Number of adjustable rate participation interests (the "Trust Assets") in commercial mortgage loans contributed in connection with securitization \| item		18
Number of properties collateralized for mortgage loan \| item		27
ACRC Lender LLC \| Offered Notes
Variable Interest Entities
Number of properties collateralized for mortgage loan \| item	15
Collateral amount	$ 378,800
ACRC KA Investor LLC
Variable Interest Entities
Preferred equity fully funded amount					$ 170,000
Number of properties \| property					22
Controlling financial interest held by parent			51.00%	54.30%
Controlling financial interest held by third party institutional investors			49.00%	45.70%
Fixed rate of return on investment					10.95
Holdco
Variable Interest Entities
Variable Interest Entity Mortgage Loans on Real Estate Commercial and Consumer Net			$ 93,900	$ 168,400
Holdco \| Primary beneficiary
Carrying value and the maximum exposure of unconsolidated VIEs
Maximum exposure to loss			$ 48,500	$ 92,400

ACQUISITIONS (Details)			1 Months Ended		12 Months Ended
ACQUISITIONS (Details)	Aug. 25, 2014 USD ($) item	Aug. 30, 2013 USD ($) shares	Jul. 31, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($) item	Dec. 31, 2014 USD ($) item	Dec. 31, 2013 USD ($)
ACQUISITIONS
Number of loans held under MSR portfolio \| item					973	976
Unpaid principal amount on servicing assets					$ 4,900,000,000	$ 4,100,000,000
MSRs acquired in asset acquisition						1,259,000
Determination of gain on acquisition
Gain on acquisition							$ 4,438,000
ACRE Capital
ACQUISITIONS
Total consideration paid		$ 60,900,000	$ 325,000	$ 500,000
Cash as consideration for the acquisition		$ 53,400,000
Number of shares of common stock issued as consideration for the acquisition \| shares		588,235
Decrease in gain on acquisition					$ 0	$ 0
ACRE Capital \| Freddie Mac Program Plus license
ACQUISITIONS
Number of loans held under MSR portfolio \| item	46
Unpaid principal amount on servicing assets	$ 370,600,000
Total consideration paid	2,200,000
MSRs acquired in asset acquisition	1,300,000
Remaining purchase price allocated to indefinite-lived intangible asset	$ 941,000

SEGMENTS (Details) $ in Thousands	3 Months Ended								12 Months Ended
SEGMENTS (Details) $ in Thousands	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Sep. 30, 2014 USD ($)	Jun. 30, 2014 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2015 USD ($) item	Dec. 31, 2014 USD ($) item	Dec. 31, 2013 USD ($) item	Dec. 31, 2012 USD ($)
SEGMENTS
Number of reportable business segments \| item									2	2
ASSETS
Cash and cash equivalents	$ 8,995				$ 16,551				$ 8,995	$ 16,551	$ 20,100	$ 23,390
Restricted cash	30,380				66,121				30,380	66,121
Loans held for investment	1,174,391				1,462,584				1,174,391	1,462,584	958,495
Loans held for sale, at fair value	30,612				203,006				30,612	203,006
Mortgage servicing rights, at fair value	61,800				58,889				61,800	58,889	59,640
Other assets	72,804				55,004				72,804	55,004
Total assets	1,378,982				1,862,155				1,378,982	1,862,155
Net interest margin:
Interest income from loans held for investment									86,337	70,495	37,600
Interest expense									(36,342)	(33,637)	(14,973)
Net interest margin									49,995	36,858	22,627
Mortgage banking revenue:
Servicing fees, net									16,051	16,399	5,754
Gains from mortgage banking activities									27,067	17,492	5,019
Provision for loss sharing									1,093	1,364	(6)
Change in fair value of mortgage servicing rights									(8,798)	(7,650)	(2,697)
Mortgage banking revenue									35,413	27,605	8,070
Gain on sale of loans										680	1,333
Total revenue	20,924	$ 23,916	$ 22,131	$ 18,437	20,792	$ 13,180	$ 17,413	$ 13,758	85,408	65,143	32,030
Expenses:
Management fees to affiliate									5,948	5,916	4,241
Professional fees									3,091	3,733	2,924
Compensation and benefits									20,448	18,649	5,456
Acquisition and investment pursuit costs										20	4,079
General and administrative expenses									6,795	9,252	3,955
General and administrative expenses reimbursed to affiliate									3,878	4,000	3,610
Total expenses									40,160	41,570	24,265
Changes in fair value of derivatives											1,739
Income from operations before gain on acquisition and income taxes									45,248	23,573	9,504
Gain on acquisition											4,438
Income before income taxes									45,248	23,573	13,942
Income tax expense (benefit)									1,928	(1,043)	176
Net income attributable to ACRE	11,052	11,710	11,263	9,295	9,121	4,102	6,638	4,755	43,320	24,616	13,766
Less: Net income attributable to non-controlling interests									(9,035)	(220)
Net income attributable to common stockholders	8,877	$ 9,379	$ 8,967	$ 7,062	8,901	$ 4,102	$ 6,638	$ 4,755	34,285	24,396	13,766
ACRE
ASSETS
Cash and cash equivalents	5,066				15,045				5,066	15,045
Restricted cash	13,083				49,679				13,083	49,679
Loans held for investment	1,174,391				1,462,584				1,174,391	1,462,584
Other assets	53,191				39,959				53,191	39,959
Total assets	1,245,731				1,567,267				1,245,731	1,567,267
Net interest margin:
Interest income from loans held for investment									86,337	70,495	37,600
Interest expense									(36,342)	(33,637)	(14,973)
Net interest margin									49,995	36,858	22,627
Mortgage banking revenue:
Gain on sale of loans										680
Total revenue									49,995	37,538	22,627
Expenses:
Management fees to affiliate									5,397	5,440	4,125
Professional fees									2,018	2,686	2,447
Acquisition and investment pursuit costs										20	4,079
General and administrative expenses									2,830	3,003	2,430
General and administrative expenses reimbursed to affiliate									3,426	3,400	3,394
Total expenses									13,671	14,549	16,475
Changes in fair value of derivatives											1,739
Income from operations before gain on acquisition and income taxes											7,891
Gain on acquisition											4,438
Income before income taxes									36,324	22,989	12,329
Income tax expense (benefit)									(11)	240
Net income attributable to ACRE									36,335	22,749
Less: Net income attributable to non-controlling interests									(9,035)	(220)
Net income attributable to common stockholders									$ 27,300	$ 22,529	$ 12,329
ACRE \| Revenue \| Customer
Expenses:
Number of Customers \| item									2	1	1
Concentration risk (as a percent)									29.10%	15.80%	13.00%
ACRE Capital
ASSETS
Cash and cash equivalents	3,929				1,506				$ 3,929	$ 1,506
Restricted cash	17,297				16,442				17,297	16,442
Loans held for sale, at fair value	30,612				203,006				30,612	203,006
Mortgage servicing rights, at fair value	61,800				58,889				61,800	58,889
Other assets	19,613				15,045				19,613	15,045
Total assets	$ 133,251				$ 294,888				133,251	294,888
Mortgage banking revenue:
Servicing fees, net									16,051	16,399	$ 5,754
Gains from mortgage banking activities									27,067	17,492	5,019
Provision for loss sharing									1,093	1,364	(6)
Change in fair value of mortgage servicing rights									(8,798)	(7,650)	(2,697)
Mortgage banking revenue									35,413	27,605	8,070
Gain on sale of loans											1,333
Total revenue									35,413	27,605	9,403
Expenses:
Management fees to affiliate									551	476	116
Professional fees									1,073	1,047	477
Compensation and benefits									20,448	18,649	5,456
General and administrative expenses									3,965	6,249	1,525
General and administrative expenses reimbursed to affiliate									452	600	216
Total expenses									26,489	27,021	7,790
Income from operations before gain on acquisition and income taxes											1,613
Income before income taxes									8,924	584	1,613
Income tax expense (benefit)									1,939	(1,283)	176
Net income attributable to ACRE									6,985	1,867
Net income attributable to common stockholders									6,985	1,867	1,437
Other interest expense after adjustment of intercompany note									4,300	3,700	1,200
Servicing Fees									16,500
Net income after adjustment of intercompany note									$ 3,100	$ 1,800	$ 244

QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Total revenue	$ 20,924	$ 23,916	$ 22,131	$ 18,437	$ 20,792	$ 13,180	$ 17,413	$ 13,758	$ 85,408	$ 65,143	$ 32,030
Net income	11,052	11,710	11,263	9,295	9,121	4,102	6,638	4,755	43,320	24,616	13,766
Net income attributable to common stockholders	$ 8,877	$ 9,379	$ 8,967	$ 7,062	$ 8,901	$ 4,102	$ 6,638	$ 4,755	$ 34,285	$ 24,396	$ 13,766
Net income per common share-Basic	$ 0.31	$ 0.33	$ 0.31	$ 0.25	$ 0.31	$ 0.14	$ 0.23	$ 0.17	$ 1.20	$ 0.86	$ 0.72
Net income per common share-Diluted	$ 0.31	$ 0.33	$ 0.31	$ 0.25	$ 0.31	$ 0.14	$ 0.23	$ 0.17	$ 1.20	$ 0.85	$ 0.72
Adjustment
Total revenue						$ (1,900)	$ (1,800)	$ (1,700)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

COSTS ASSOCIATED WITH RESTRUCTURING ACTIVITIES (Details) - ACRE Capital - Employee termination costs - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Company's exit and disposal costs incurred
Total projected costs	$ 44	$ 799
Reconciliation of the liability attributable to exit and disposal costs incurred
Balance at the beginning of the period	225
Accruals	44	799
Payments	$ (269)	(574)
Balance at the end of the period		$ 225

SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Thousands				12 Months Ended
	Mar. 01, 2016 $ / shares	Feb. 26, 2016 item	Jan. 20, 2016 USD ($)	Dec. 31, 2015 USD ($) item	Feb. 28, 2016 USD ($)	Feb. 27, 2016 USD ($)	Dec. 31, 2014 USD ($)
Subsequent Events
Outstanding principal				$ 1,133,842			$ 1,395,281
March 2014 CNB Facility \| City National Bank
Subsequent Events
Number of extension periods available for maturity date \| item				1
Extension period of maturity date				12 months
Subsequent event
Subsequent Events
Share repurchase authorized amount					$ 30,000	$ 20,000
Dividends declared per share of common stock (in dollars per share) \| $ / shares	$ 0.26
Subsequent event \| Hotel portfolio in California
Subsequent Events
Commitments			$ 56,000
Outstanding principal			$ 56,000
Term of mortgage loans			3 years
Subsequent event \| Hotel portfolio in California \| LIBOR
Subsequent Events
Base rate			LIBOR
Basis spread (as a percent)			4.75%
LIBOR floor (as a percent)			0.25%
Subsequent event \| March 2014 CNB Facility \| City National Bank
Subsequent Events
Number of extension periods available for maturity date \| item		1
Extension period of maturity date		12 months