Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both significant stakeholders in ACRES Commercial Realty Corp. (NYSE:ACR), have recently sold a portion of their holdings in the company. The transactions, which took place on July 26 and July 29, involved the sale of 8.625% Series C Preferred Stock at a price of $24.75 per share, totaling approximately $58,261.
The sales were conducted in multiple transactions at prices ranging from $24.75 to $24.76, with the exact number of shares sold at each price available upon request. Following these transactions, the entities still hold a substantial number of shares in both common and preferred stock categories of ACRES Commercial Realty Corp.
Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC manage private investment funds and accounts that directly hold the securities. They could be deemed to have an indirect pecuniary interest in the securities reported herein. However, both entities have disclaimed beneficial ownership of these securities, as defined by the Securities Exchange Act of 1934, and the reporting of these securities should not be considered an admission of beneficial ownership for any purpose.
The reported sales reflect a strategic adjustment in the investment portfolios managed by Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC. Investors and market watchers often monitor such transactions closely, as they can provide insights into the investment strategies of significant stakeholders and their outlook on the company's financial health.
ACRES Commercial Realty Corp., operating within the real estate investment trust sector, has a diverse portfolio that includes preferred and common stock, which are held and managed by various investment entities. The recent transactions by Eagle Point entities underscore the active management of their investment positions in the firm.
In other recent news, ACRES Commercial Realty Corp. reported its Q1 2024 financial results, noting a strategic decrease in its loan portfolio and steady performance across its commercial real estate investments. The company announced a net income allocable to common shares of $556,000 or $0.07 per share, and highlighted its intention to monetize assets to leverage its net operating losses (NOLs). As part of its capital return strategy, ACRES plans to reinstate dividends and continue share buybacks.
The company reported a net decrease in its loan portfolio by $69.4 million, ending the quarter with a $1.8 billion commercial real estate loan portfolio across 66 investments. ACRES is also focused on deleveraging, reducing its debt-to-equity leverage ratio to 3.7 times. The company anticipates a 10% return on book value through asset sales and reinvestment in the loan portfolio.
Despite a $1.7 million drop in real estate income, mainly due to seasonal variations in the hotel sector, ACRES remains confident in the monetization of assets and sees attractive opportunities in the market to normalize operations. These are recent developments that reflect ACRES Commercial Realty's strategic approach to balance capital return to shareholders and loan portfolio management amidst changing market conditions.
InvestingPro Insights
Amidst the strategic portfolio adjustments by Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC in ACRES Commercial Realty Corp. (NYSE:ACR), it's worth noting that ACR's management has been actively repurchasing shares, signaling confidence in the company's valuation and future prospects. This aligns with the InvestingPro Tip that ACR is trading at a low Price / Book multiple, currently standing at just 0.25, which may indicate the stock is undervalued relative to its assets.
ACR's financial health appears robust with a market capitalization of $108.91 million and a promising net income outlook for this year. The company's revenue has grown by 18.19% over the last twelve months as of Q1 2024, suggesting a solid top-line expansion. Although the quarterly revenue growth has seen a decline of 13.09% in Q1 2024, the company has demonstrated a high return over the last year with a 57.54% price total return, and it is trading near its 52-week high at 99.18% of the peak price.
For investors considering ACR, it may be an opportune time to delve deeper into the company's performance metrics and investment potential. InvestingPro offers a comprehensive list of 11 additional tips for ACR, which can be accessed at https://www.investing.com/pro/ACR. To enhance your investment research, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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