Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, affiliated entities with a stake in ACRES Commercial Realty Corp. (NYSE:ACR), have sold a significant amount of the company's Series C Preferred Stock. The total value of the sold shares amounts to over $113,000, transacted at a price of $25.00 per share.
The sale, which took place on June 28, 2024, involved 4,528 shares of the 8.625% Series C Preferred Stock. According to the footnotes of the filing, the reported price reflects the weighted average purchase price per share. These shares were sold in multiple transactions with prices ranging from $25.00 to $25.04 per share.
Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both based in Greenwich, CT, manage private investment funds and accounts that directly held the securities. The entities could be deemed to have an "indirect pecuniary interest" in the securities, as stated in the report's footnotes. Moreover, they have disclaimed beneficial ownership of the securities described in the report, emphasizing that the inclusion of these securities in the report is not an admission of beneficial ownership for any purpose.
Following the transaction, the entities continue to indirectly hold a substantial number of shares in ACRES Commercial Realty Corp., with 1,191,307 shares of Common Stock and 1,020,135 shares of 7.875% Series D Preferred Stock still under their indirect ownership.
The transaction was signed off by Kenneth P. Onorio, the Chief Financial Officer of both Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, on July 2, 2024.
In other recent news, ACRES Commercial Realty Corp. has reported steady financial results for the first quarter of 2024, with a strategic decrease in its loan portfolio and consistent 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 outlined plans to reinstate dividends and continue share buybacks. ACRES also reported a net decrease in its loan portfolio by $69.4 million and ended the quarter with a $1.8 billion commercial real estate loan portfolio across 66 investments. An office property acquisition in Chicago resulted in a $5.8 million gain, and the company plans to monetize assets to utilize net operating losses (NOLs) and targets a return on book value of 10%. These are among the recent developments for ACRES, which also aims for a 10% return on book value through asset sales and reinvestment in the loan portfolio. The company is actively deleveraging, with two CLOs running off and repayment in progress. Management expressed confidence in the monetization of assets and sees attractive opportunities in the market to normalize operations.
InvestingPro Insights
ACRES Commercial Realty Corp. (NYSE:ACR) has been in the spotlight following the recent transaction by Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC. Investors interested in ACR's financial health and future prospects may find the following InvestingPro Insights particularly relevant:
ACR's market capitalization stands at a modest $99.78 million, reflecting its position in the market. The company's Price / Book multiple, based on the last twelve months as of Q1 2024, is notably low at 0.23, suggesting that the market may be undervaluing the company's assets relative to its share price. This could be an attractive point for value investors seeking underpriced stocks.
The company's P/E Ratio for the same period is 21.79, which might be considered reasonable given the context of its industry and peers. Moreover, ACR has experienced a substantial Year-To-Date price total return of 36.8%, indicating strong performance in the market so far this year.
From the perspective of InvestingPro Tips, two pieces of information stand out for ACR: Management has been aggressively buying back shares, which could signal confidence in the company's value and future prospects. Additionally, analysts are predicting that ACR will be profitable this year, which is a positive sign for potential investors.
For those considering a deeper dive into ACR's financials and future outlook, InvestingPro offers a wealth of additional tips. In fact, there are 9 more InvestingPro Tips available that could provide further insights into the company's performance and potential investment opportunities. For access to these valuable tips, visit https://www.investing.com/pro/ACR and remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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