Investors in ACRES Commercial Realty Corp. (NYSE:ACR) may be interested to learn that Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both significant stakeholders in the real estate investment trust, have recently sold a substantial number of preferred shares. The transactions, which occurred over a span of three days, resulted in the sale of ACRES Commercial Realty's 8.625% Series C Preferred Stock at prices ranging from $24.91 to $24.92 per share.
The total value of the shares sold by the Eagle Point entities amounted to over $144,539. Specifically, on August 26, 2100 shares were sold, followed by a sale of 2502 shares on August 27, and another 1200 shares on August 28. These sales were executed at a weighted average price, with individual transactions occurring within a narrow price range as detailed in the footnotes of the SEC filing.
It's important to note that the shares are directly held by certain private investment funds and accounts managed by Eagle Point Credit Management LLC. Eagle Point DIF GP I LLC acts as the general partner for some of these accounts. Both entities could be deemed to have an "indirect pecuniary interest" in the securities reported here. However, they have disclaimed beneficial ownership of the securities as per Rule 16a-1(a)(4) under the Securities Exchange Act of 1934.
Following these transactions, Eagle Point entities continue to hold a significant number of shares in both the preferred and common stock categories of ACRES Commercial Realty Corp. The reported sales reflect a portion of their holdings and are part of regular investment management activities. The SEC filing, signed by Kenneth P. Onorio, Chief Financial Officer of both Eagle Point entities, provides a transparent account of these transactions to the market.
In other recent news, ACRES Commercial Realty Corp. reported its Q2 2024 financial results, revealing a GAAP net income of $1.7 million and a book value per share of $27.20. The company experienced a net decrease of $61.9 million in its loan portfolio following loan payoffs totaling $71.2 million. One notable development was the resolution of an $8 million defaulted loan collateralized by a retail property in New Jersey.
ACRES Commercial Realty is also actively managing real estate investments, including a student housing project at Florida State University nearing completion. The company ended the quarter with $1.7 billion in commercial real estate loans and $98.4 million in available liquidity.
As part of its strategic plans, ACRES Commercial Realty is considering selling assets, reinvesting in the loan book, and potentially reinstating dividends. The company is currently working with the first mortgage special service to determine the outcome of a mezzanine loan on an office building in Pittsburgh. Despite these recent developments, the timing of asset sales and the reinstatement of dividends remains uncertain.
InvestingPro Insights
As ACRES Commercial Realty Corp. (NYSE:ACR) navigates the market, investors are closely monitoring the company's performance and strategic moves. In light of recent share transactions by significant stakeholders, it's pertinent to consider key financial metrics and insights that could shed light on ACR's current standing and future prospects.
InvestingPro data highlights ACR's market capitalization, which currently stands at a modest $114.88 million. With a Price/Earnings (P/E) ratio of 18.7, the company appears to be valued by the market at a level that suggests moderate expectations for future earnings growth. However, the adjusted P/E ratio for the last twelve months as of Q2 2024 is slightly higher at 22.04, indicating a potential reassessment of the company's earnings capability in the future.
One of the key InvestingPro Tips for ACR is its perfect Piotroski Score of 9, which suggests that the company is financially healthy and may be less likely to encounter financial distress in the near term. Additionally, management's aggressive share buyback program can be seen as a vote of confidence in the company's value, potentially signaling to investors that the stock is undervalued.
ACR's recent performance also shows a robust return over the past year, with a 1 Year Price Total Return of 84.56%, and a strong return over the last three months at 25.54%. These figures underscore the company's impressive gains in share price, aligning with the InvestingPro Tip that highlights ACR's large price uptick over the last six months.
For investors seeking more comprehensive analysis and additional InvestingPro Tips, there are 12 more tips available that delve into various aspects of ACR's financial health and market performance. These can be accessed through InvestingPro's platform, offering valuable insights for making informed investment decisions.
As ACR trades near its 52-week high, with the price at 97.83% of that peak, investors may want to consider whether the company's growth trajectory and financial stability justify its current market valuation. With a revenue growth of 13.82% over the last twelve months as of Q2 2024, ACR demonstrates its ability to increase its top line, although it's crucial to note the quarterly revenue contraction of -6.32% for Q2 2024, which may warrant closer scrutiny.
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