Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both part of the Eagle Point group, have recently sold a significant amount of preferred stock in ACRES Commercial Realty Corp. (NYSE:ACR), a real estate investment trust. The transactions, reported on September 16 and 17, 2024, involved the sale of two different series of preferred stock, totaling over $327,746.
On September 16, the entities sold shares of 8.625% Series C Preferred Stock at an average price of $25.02 per share, and 7.875% Series D Preferred Stock at an average price of $22.90 per share. The following day, more shares of the same series were sold at slightly higher prices, with the Series C Preferred Stock averaging $25.04 per share and the Series D Preferred Stock at $23.00 per share. The price range for these transactions was between $22.90 and $25.04.
The exact number of shares sold during these transactions was not disclosed in the report. However, the sales resulted in Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC holding 575,754 shares of the Series C Preferred Stock and 997,917 shares of the Series D Preferred Stock after the sales on September 16. After the sales on September 17, their holdings were adjusted to 573,387 shares of Series C and 991,693 shares of Series D.
The disclosure notes indicate that the preferred stock is directly held by certain private investment funds and/or accounts managed by Eagle Point Credit Management LLC. Eagle Point DIF GP I LLC serves as the general partner to some of these accounts. Both entities could be deemed to have an "indirect pecuniary interest" in the securities reported herein.
The reporting persons have disclaimed beneficial ownership of the securities described in the report, and the inclusion of these securities in the report shall not be deemed an admission of beneficial ownership for any purpose. The footnotes also clarify that the prices reported reflect the weighted average price per share and that these securities were sold in multiple transactions at prices within the stated ranges.
Investors and market observers often monitor such sales for insights into how insiders and significant shareholders view the company's stock value and future prospects.
In other recent news, ACRES Commercial Realty Corp. announced its Q2 2024 financial results, showing a strategic focus on improving the credit quality of its investments. Despite a net decrease in its loan portfolio, the real estate company reported a GAAP net income of $1.7 million and a book value per share of $27.20. The company's future plans include selling assets, reinvesting in the loan book, and potentially reinstating dividends.
On another note, InPoint Commercial Real Estate Income, Inc. successfully concluded its 2024 Annual Meeting of Stockholders. The meeting resulted in the election of five directors to its Board and the ratification of KPMG LLP as the company's independent auditors. The elected directors are Mitchell A. Sabshon, Donald MacKinnon, Norman A. Feinstein, Cynthia Foster Curry, and Robert N. Jenkins.
These are recent developments that reflect the ongoing activities within both ACRES Commercial Realty Corp. and InPoint Commercial Real Estate Income, Inc.
InvestingPro Insights
Following the recent transactions by Eagle Point entities involving preferred stock in ACRES Commercial Realty Corp. (NYSE:ACR), investors may find the latest metrics and insights from InvestingPro particularly illuminating. ACRES Commercial Realty has demonstrated a strong financial performance with a notable P/E Ratio of 18.23, indicating a potentially attractive valuation relative to earnings. The company's Price / Book multiple, as of the last twelve months leading up to Q2 2024, stands at a low 0.26, suggesting that the stock could be undervalued compared to the company's net asset value.
Moreover, ACRES Commercial Realty showcases a robust revenue growth of 13.82% during the same period, reflecting its capacity to expand its financial top line effectively. This growth narrative is complemented by a solid gross profit margin of 49.45%, which underscores the company's ability to retain a significant portion of its revenue as gross profit.
An InvestingPro Tip that may resonate with investors is the aggressive share buyback strategy by management, which could signal confidence in the company's valuation and future prospects. Additionally, the company's net income is expected to grow this year, providing a positive outlook for profitability. For those interested in further insights, InvestingPro offers additional tips on ACRES Commercial Realty, which can be explored at https://www.investing.com/pro/ACR.
It's worth noting that, aside from the two InvestingPro Tips shared here, there are nine more listed on InvestingPro, providing a comprehensive analysis for investors seeking more in-depth information.
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