Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both of which are entities that manage private investment funds and accounts, have reported the sale of preferred stock in ACRES Commercial Realty Corp. (NYSE:ACR). The sales, which occurred over a series of transactions between August 13 and August 15, 2024, amounted to a total of $186,871. The preferred stock sold was ACRES Commercial Realty's 8.625% Series C Preferred Stock, and the price per share for these transactions ranged from $24.85 to $24.87.
The series of sales began on August 13, with 1,309 shares sold at an average price of $24.85 per share. The following day, an additional 1,500 shares were sold at an average price of $24.87 per share. The sales concluded on August 15 with a larger transaction of 4,706 shares, also at an average price of $24.87 per share. Following these transactions, the ownership of Eagle Point entities in ACRES Commercial Realty's preferred stock has decreased, yet they continue to hold a significant number of shares.
Footnotes associated with the filing indicate that the securities were directly held by certain private investment funds and/or accounts managed by Eagle Point Credit Management LLC, with Eagle Point DIF GP I LLC serving as general partner to certain accounts. Both entities could be deemed to have an "indirect pecuniary interest" in the securities sold, although they have disclaimed beneficial ownership of these securities for the purpose of Section 16 or for any other purpose.
Investors tracking insider transactions may find this recent activity in ACRES Commercial Realty Corp.'s preferred stock noteworthy, as it provides insights into the trading behavior of significant stakeholders in the company. The sales were reported in a Form 4 filing with the Securities and Exchange Commission by Kenneth P. Onorio, Chief Financial Officer of both Eagle Point entities.
In other recent news, ACRES Commercial Realty Corp. reported its financial outcomes for the second quarter of 2024. The company highlighted a net decrease in its loan portfolio, with loan payoffs totaling $71.2 million. Notably, ACRES resolved a defaulted loan valued at $8 million, collateralized by a retail property in New Jersey.
The company is actively managing real estate investments, including a student housing project at Florida State University which is nearing completion. ACRES' GAAP net income stands at $1.7 million with a book value per share of $27.20.
Looking ahead, ACRES Commercial Realty is considering selling assets, reinvesting in the loan book, and potentially reinstating dividends. The company is actively seeking new origination opportunities and is focused on enhancing the credit quality of its investment portfolio. These are part of the recent developments in the company's strategic plan.
InvestingPro Insights
As Eagle Point entities adjust their holdings in ACRES Commercial Realty Corp. (NYSE:ACR), investors are closely monitoring insider activity for signals about the company's financial health and future prospects. In light of the recent transactions, InvestingPro provides valuable data and insights that could help investors make more informed decisions.
InvestingPro data shows that ACRES Commercial Realty Corp. has a market capitalization of $114.15 million, reflecting its size and market presence. The company's Price to Earnings (P/E) ratio stands at 18.6, which offers a perspective on how the stock is valued relative to its earnings. Notably, the company's Price / Book ratio for the last twelve months as of Q2 2024 is 0.27, which could suggest that the stock is undervalued relative to its assets, aligning with one of the InvestingPro Tips that highlights the company's low Price / Book multiple.
Additionally, ACRES Commercial Realty Corp. has experienced a large price uptick over the last six months, with a 51.59% return, and an impressive year-to-date price total return of 58.21%. This performance is a testament to the company's strong market position and may be of particular interest to investors looking for growth opportunities.
InvestingPro Tips also reveal that ACRES Commercial Realty Corp. has a perfect Piotroski Score of 9, indicating strong financial health, and management has been aggressively buying back shares, which can often be a sign of confidence in the company's future. Moreover, analysts predict the company will be profitable this year, which is corroborated by the company being profitable over the last twelve months.
For investors seeking further insights, InvestingPro offers additional tips on ACRES Commercial Realty Corp. at InvestingPro, including expectations of net income growth this year and the company's liquidity position where liquid assets exceed short-term obligations.
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