ACRES Commercial Realty Corp.

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Securities Exchange Act of 1934, as amended, or the Exchange Act, reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our Managing Director – Capital Markets who serves as our principal executive officer (the "PEO") and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Under the supervision of our PEO and Chief Financial Officer, we have carried out an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation, our PEO and Chief Financial Officer concluded that our disclosure controls and procedures are effective at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

We merged with ACC on August 6, 2026, which is discussed in detail in Note 2, Merger of ACRES Capital Corp. and Internalization of Management to the consolidated financial statements. Our assessment of the effectiveness of our disclosure controls and procedures did not encompass the internal controls over financial reporting of ACC. This decision aligns with the general guidance from the SEC Staff, allowing the exclusion of an assessment of a recently acquired business from management’s scope for an internal controls audit for up to one year post-acquisition.

With the completion of the Merger and Internalization of ACC , we are in the process of implementing internal controls over significant processes at ACC, which we consider appropriate and necessary given the integration level. As the integration progresses, we will continuously evaluate ACC's internal controls and processes, further integrating them with ours within a year of the Merger.

Other than the ongoing integration of ACC described above, there have been no changes in our internal control over financial reporting during the quarter ended September 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.