In a recent transaction, Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both indirect owners of ACRES Commercial Realty Corp. (NYSE:ACR) stock, have sold a significant amount of the company's preferred shares. The total value of the sold shares amounts to $237,702, with the price per share ranging from $23.61 to $24.91.
ACRES Commercial Realty Corp., a real estate investment trust, experienced transactions over several days involving its 8.625% Series C Preferred Stock and 7.875% Series D Preferred Stock. On August 21, 2024, and August 22, 2024, the shares were sold at a weighted average price of $24.87 each, while on August 23, 2024, the price ranged from $24.88 to $24.97 for the Series C and from $23.65 to $23.70 for the Series D Preferred Stock.
Following these transactions, Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC still indirectly own a substantial number of shares in ACRES Commercial Realty Corp. The companies have disclaimed beneficial ownership of the reported securities for purposes of Section 16 or for any other purpose, as stated in the footnotes of the SEC filing.
Investors keeping track of insider transactions can note that these sales were carried out by entities that manage private investment funds and accounts with a significant interest in ACRES Commercial Realty Corp. The reported sales could reflect a strategic adjustment in their investment portfolios.
The specific number of shares sold at each price within the reported ranges can be provided upon request by the SEC, the issuer, or any security holder of the issuer, as undertaken by the reporting person in the footnotes of the SEC filing.
In other recent news, ACRES Commercial Realty Corp. has unveiled its financial results for the second quarter of 2024. The company reported a GAAP net income of $1.7 million and a book value per share of $27.20. A net decrease of $61.9 million in its loan portfolio was noted, following loan payoffs amounting to $71.2 million. The company also successfully resolved an $8 million defaulted loan, collateralized by a retail property in New Jersey.
ACRES Commercial Realty is actively managing its real estate investments, including a student housing development at Florida State University, which is nearing completion. The company ended the quarter with $1.7 billion in commercial real estate loans and $98.4 million in available liquidity. The firm also repurchased 115,000 common shares using $1.6 million.
Looking ahead, ACRES Commercial Realty is considering asset sales and reinvesting in the loan book. The company is also exploring the possibility of reinstating dividends after equity capital is redeployed. These developments are part of ACRES Commercial Realty's strategic focus on enhancing the credit quality of its investments.
InvestingPro Insights
ACRES Commercial Realty Corp. (NYSE:ACR) has been making waves in the market with a notable performance, as reflected by several metrics and InvestingPro Tips. With a market capitalization of $114.44 million, ACR has demonstrated a robust financial standing. The company boasts a P/E ratio of 18.66, suggesting that its stock is being traded at a multiple that is attractive compared to its earnings. This aligns with the InvestingPro Tip that the company is trading at a low Price / Book multiple, currently at 0.26, indicating potential undervaluation relative to its book value.
Investors may also be intrigued by the company's recent activities, as management has been actively engaged in share buybacks, a sign of confidence in the intrinsic value of the company's stock. Additionally, ACR has shown a high return over the last year with an 86.67% price total return, which is particularly impressive and could be indicative of strong investor sentiment.
Looking at the revenue side, ACR has reported a growth of 13.82% in its revenue over the last twelve months as of Q2 2024, reflecting a solid uptrend in its business operations. However, it's worth noting that there was a slight decline in quarterly revenue growth by -6.32% in Q2 2024, which investors might want to consider when evaluating the company's short-term performance.
For those interested in additional insights and metrics, InvestingPro offers a comprehensive list of tips to further assess the investment potential of ACRES Commercial Realty Corp. Currently, there are 14 additional InvestingPro Tips available for ACR, which can be accessed at: https://www.investing.com/pro/ACR. These tips could provide valuable information for investors looking to make an informed decision regarding ACR stock.
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