ACRE reported a GAAP net loss of $5.9 million for the third quarter of 2024, driven largely by elevated CECL reserves and a realized REO-related loss, while distributable earnings (DE) stood at $3.7 million for the quarter. When excluding the $5.8 million realized loss associated with taking North Carolina’s office asset to REO, DE would have been $9.5 million, or $0.17 per share, underscoring the company’s ability to generate cash flow from ongoing operations even as GAAP earnings remained negative. A key theme of the quarter is balance-sheet strengthening: liquidity rose to $134 million (as of November 5, 2024, including $42 million of available but undrawn financing), and leverage was reduced to $1.3 billion, with net debt-to-equity (excluding CECL) at 1.8x, down from 1.9x in the prior quarter. The CECL reserve increased to approximately $146 million (about 8% of total outstanding loans held for investment), with roughly 87% of that reserve tied to risk-rated 4/5 assets. Management reiterated a deliberate plan to delever and bolster liquidity by year-end 2024 and to accelerate resolution of higher-risk assets in 2025, while opportunistically reinvesting repayments to reshape the portfolio. The quarter also featured meaningful portfolio activity, including $340 million of repayments year-to-date through Q3 and the full repayment of a $98 million risk-rated 5 Texas multifamily loan (with net proceeds $6.5 million above carrying value) and a REO conversion on a $69 million North Carolina office loan. The company maintained the quarterly dividend, declaring $0.25 per common share for Q4 2024, signaling a commitment to shareholder returns amid a challenging but improving CRE backdrop.