In a recent transaction, Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both entities managing private investment funds, have sold a significant amount of preferred stock in ACRES Commercial Realty Corp. (NYSE:ACR). The total value of the sold shares amounts to $318,581, with the prices of the shares ranging from $22.76 to $24.99.
The series of transactions involved the sale of 8.625% Series C Preferred Stock and 7.875% Series D Preferred Stock. Specifically, the 8.625% Series C Preferred Stock was sold in multiple transactions at prices between $24.98 and $25.00 per share, while the 7.875% Series D Preferred Stock was sold at prices ranging from $22.72 to $22.79 per share.
Following the sales, the ownership stakes of Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC in ACRES Commercial Realty Corp. have been adjusted accordingly. The reporting entities have disclaimed beneficial ownership of the securities described in the report, indicating that they do not have a direct financial interest in the securities for the purposes of Section 16 or for any other purpose.
The transactions were carried out in a series of sales on different dates, with the first sale occurring on September 9, 2024, and the last on September 11, 2024. During these dates, a total of 699 shares of 8.625% Series C Preferred Stock were sold at an average price of $24.98 on the first day, followed by a larger transaction of 5,300 shares of 7.875% Series D Preferred Stock at an average price of $22.76 on the subsequent day. The sales continued with 3,648 and 3,576 shares of 8.625% Series C Preferred Stock being sold at average prices of $24.99 and $24.98 respectively on the final two days.
The footnotes included in the report provide additional context to the transactions, suggesting that the securities are held by the applicable accounts managed by the reporting entities. They also clarify that the prices reported reflect the weighted average price per share and that the securities were sold in multiple transactions at a range of prices.
Investors keeping an eye on ACRES Commercial Realty Corp. will note these transactions as part of the ongoing financial activities of significant stakeholders in the company.
In other recent news, ACRES Commercial Realty Corp. disclosed its second-quarter 2024 financial results, underscoring a net decrease in its loan portfolio and a strategic emphasis on enhancing the credit quality of its investments. The company resolved an $8 million defaulted loan collateralized by a New Jersey retail property and is actively managing real estate investments, including a student housing project at Florida State University nearing completion. ACRES reported a GAAP net income of $1.7 million, a book value per share of $27.20, and ended the quarter with $1.7 billion in commercial real estate loans.
The company's future growth strategy includes potential asset sales and dividend reinstatement, with plans in place to sell some assets and reinvest the capital into the loan book. ACRES repurchased 115,000 common shares using $1.6 million and maintains $98.4 million in available liquidity along with a debt to equity leverage ratio of 3.6 times.
These recent developments align with ACRES' focus on improving its investment portfolio quality and seeking new origination opportunities. However, the company noted that the timing of asset sales and the reinstatement of dividends remains uncertain. Despite a net decrease in its loan portfolio this quarter, ACRES expects a positive resolution for the assets currently behind plan and continues to work towards decreasing leverage as CLOs de-lever.
InvestingPro Insights
ACRES Commercial Realty Corp. (NYSE:ACR) has been making headlines with its recent preferred stock transactions. For investors monitoring ACR's financial dynamics, several key metrics and InvestingPro Tips can provide a deeper understanding of the company's current market position. Firstly, ACR boasts a perfect Piotroski Score of 9, indicating strong financial health. Additionally, management's aggressive share buyback activity signals confidence in the company's value. ACR's stock price has experienced notable volatility, yet it has delivered a high return over the last year, with a 93.62% price total return, reinforcing the potential for lucrative investment opportunities.
From a valuation standpoint, ACR's Price / Book ratio stands at a low 0.26 as of the last twelve months leading up to Q2 2024, suggesting that the stock may be undervalued relative to its book value. This is complemented by a P/E Ratio of 18.07, which adjusts to 21.61 when considering the same period, offering a perspective on the company's earnings relative to its share price. Furthermore, with a Revenue Growth of 13.82% during the same timeframe, ACR demonstrates its ability to expand its top-line earnings.
Investors interested in further insights can find additional InvestingPro Tips on the platform, which detail ACR's expected net income growth this year and the analysts' predictions of profitability, among other valuable metrics. For those seeking to dive deeper, there are a total of 12 InvestingPro Tips available for ACR at https://www.investing.com/pro/ACR, providing a more comprehensive analysis to guide investment decisions.
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