Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both entities with indirect pecuniary interest in ACRES Commercial Realty Corp. (NYSE:ACR), have recently sold a significant amount of preferred stock in the company. The transactions, which occurred between June 25 and June 27, 2024, resulted in the sale of the company's 8.625% Series C Preferred Stock totaling over $814,000.
The sales were executed in multiple transactions with prices ranging from $25.00 to $25.02 per share. On June 25, 7,005 shares were sold at an average price of $25.01; the next day, 7,100 shares were sold at an average price of $25.02; and on June 27, a larger transaction of 18,464 shares took place at an average price of $25.00. Following these sales, the reporting entities still indirectly own a substantial number of shares in both the preferred and common stock categories of ACRES Commercial Realty Corp.
The footnotes of the report clarify that the securities are directly held by private investment funds or accounts managed by Eagle Point Credit Management LLC, with Eagle Point DIF GP I LLC acting as the general partner for certain accounts. Both reporting entities disclaim beneficial ownership of the securities sold, as defined under the Securities Exchange Act of 1934, and the report should not be considered an admission of beneficial ownership for any purpose.
Investors and followers of ACRES Commercial Realty Corp. may find this information relevant as it reflects the trading activities of significant stakeholders in the company. The preferred stock, known for its fixed dividends, is an important component of the company's capital structure and can be indicative of how major investors are viewing the company's performance and prospects.
ACRES Commercial Realty Corp., with its former names Exantas Capital (NYSE:ACR) Corp. and Resource Capital Corp ., is a Maryland-incorporated real estate investment trust that operates in the commercial real estate finance sector. The company and its investors will continue to monitor these transactions and their implications for the overall investment community.
In other recent news, ACRES Commercial Realty Corp. disclosed its Q1 2024 financial results, revealing a strategic reduction in its loan portfolio and steady performance in its commercial real estate investments. The company reported a net income allocable to common shares of $556,000 or $0.07 per share, with plans to monetize assets to utilize net operating losses and a goal to reinstate dividends and continue share buybacks. The firm's loan portfolio saw a net decrease of $69.4 million, ending the quarter with a $1.8 billion commercial real estate loan portfolio across 66 investments. A noteworthy 17% of loans were rated high quality, and an office property acquisition in Chicago led to a $5.8 million gain. However, the company experienced a $1.7 million drop in real estate income, primarily due to seasonal variations in the hotel sector. Despite this, ACRES has seen its book value per share grow by 14.4% annually since Q3 2020. These are the latest developments in the company's strategic approach to balance capital return to shareholders and loan portfolio management.
InvestingPro Insights
Amidst the recent sales of preferred stock by Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, ACRES Commercial Realty Corp. (NYSE:ACR) has shown notable activity in its financial metrics and stock performance. According to InvestingPro data, ACR's market capitalization stands at a modest 97.29 million USD. The company's Price / Book ratio, as of the last twelve months ending Q1 2024, is at a low 0.22, which may suggest that the stock is undervalued relative to its book value. Additionally, ACR's revenue growth for the same period was 18.19%, indicating a healthy increase in earnings.
Investors considering ACR's stock should note the significant price appreciation over the last six months, with a 30.71% total return, which aligns with the InvestingPro Tip highlighting a large price uptick during this period. Furthermore, ACR's management has been actively engaging in share buybacks, a move often interpreted as confidence in the company's future prospects and a potential signal for value to shareholders.
For those seeking a deeper analysis and more InvestingPro Tips, such as the expected growth in net income this year or the company's liquidity position, additional insights are available. There are currently 9 additional InvestingPro Tips for ACR, which can be accessed by visiting the dedicated page on Investing.com. For a more comprehensive investment decision-making process, readers can take advantage of a special offer using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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