Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both entities under Eagle Point, have recently sold shares of ACRES Commercial Realty Corp. (NYSE:ACR), a real estate investment trust. The transactions, which occurred over several days, amounted to a total sale value of nearly $241,000.
The sales, executed between July 11 and July 15, involved 8.625% Series C Preferred Stock of ACRES Commercial Realty. The shares were sold at prices ranging from $24.63 to $24.67, according to the weighted average purchase prices reported. On July 11, 1,900 shares were sold at an average price of $24.63 per share. The following day, 7,200 shares were sold at the same average price. The final sale on July 15 included 679 shares at a slightly higher average price of $24.67 per share.
Following these transactions, the entities' direct holdings in the preferred stock category have decreased, yet they maintain indirect ownership of a significant number of shares in ACRES Commercial Realty. Eagle Point Credit Management LLC, as the manager of certain private investment funds and accounts, and Eagle Point DIF GP I LLC, serving as the general partner to some of these accounts, have disclosed their indirect pecuniary interest in these securities.
It's important to note that both reporting entities have disclaimed beneficial ownership of the securities described in the report, stating that the inclusion of these securities should not be deemed an admission of beneficial ownership for any purpose.
The sale of shares by Eagle Point entities comes as a notable transaction for investors following the real estate investment trust sector, providing insight into the investment moves of significant stakeholders in ACRES Commercial Realty Corp.
In other recent news, ACRES Commercial Realty Corp. has released its first quarter results for 2024, demonstrating a strategic decrease in its loan portfolio and stable 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, and announced plans to reinstate dividends and continue share buybacks as part of its capital return strategy. ACRES ended the quarter with a robust $1.8 billion commercial real estate loan portfolio across 66 investments, and a gain of $5.8 million from an office property acquisition in Chicago.
ACRES also detailed its ongoing efforts to monetize assets to leverage its net operating losses (NOLs), and is targeting a return on book value of 10%. In line with its focus on deleveraging, the company has reduced its debt-to-equity leverage ratio to 3.7 times. Despite a $1.7 million drop in real estate income, mainly due to seasonal variations in the hotel sector, the company's book value per share has grown by 14.4% annually since Q3 2020. These developments are part of ACRES' strategic approach to balance returning capital to shareholders and managing its loan portfolio amidst changing market conditions.
InvestingPro Insights
The recent sale of shares in ACRES Commercial Realty Corp. (NYSE:ACR) by Eagle Point entities reflects a strategic move within the real estate investment trust sector. To provide investors with deeper insights, let's consider some key data and tips from InvestingPro. ACRES Commercial Realty has a market capitalization of $105.66 million and is currently trading at a price-to-earnings (P/E) ratio of 19.34. Notably, the company's P/E ratio is expected to adjust to 23.2 based on the last twelve months as of Q1 2024.
From an investment standpoint, ACR's stock has demonstrated significant volatility, with a 6-month price total return of 40.16% and a year-to-date return of 42.93%. This volatility is accompanied by robust performance, as the company has experienced a 54.32% one-year price total return, closely approaching 95.82% of its 52-week high, indicating strong recent growth. Additionally, ACR is trading at a low Price / Book multiple of 0.24, suggesting that the company's stock may be undervalued relative to its book value.
InvestingPro Tips highlight several optimistic signals for ACR, including management's aggressive share buyback strategy and the expectation of net income growth this year. Moreover, analysts predict profitability for the company within the year, and it's worth noting that ACR has been profitable over the last twelve months. For investors seeking comprehensive analysis and additional insights, there are 11 InvestingPro Tips available for ACRES Commercial Realty, which can be accessed through InvestingPro's platform at https://www.investing.com/pro/ACR. To enhance your investment research, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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