Eagle Point Credit Management LLC and its related entity, Eagle Point DIF GP I LLC, have sold a total of $142,760 worth of preferred stock in ACRES Commercial Realty Corp. (NYSE:ACR), according to the latest SEC filings. The transactions, which took place between August 7 and August 9, involved sales of two different series of preferred stock at varying prices.
The sold shares included the 8.625% Series C Preferred Stock and the 7.875% Series D Preferred Stock. Prices for the sales ranged from $23.99 to $24.86 per share. Specifically, on August 7, 3859 shares of the 8.625% Series C Preferred Stock were sold at $24.86 each, followed by 805 shares of the 7.875% Series D Preferred Stock at $23.99 per share. Subsequent sales on August 8 and 9 of the 8.625% Series C Preferred Stock saw 1008 shares sold at an average price of $24.83, and 100 shares sold at $24.85 respectively.
These transactions were carried out by Eagle Point entities, which manage private investment funds and accounts that hold these securities. The filings indicate that Eagle Point Credit Management LLC, as the manager, and Eagle Point DIF GP I LLC, as the general partner for certain accounts, have an indirect pecuniary interest in the securities. Both entities have disclaimed beneficial ownership of the securities sold, as noted in the footnotes of the SEC document.
While the sold shares represent a portion of the entities' holdings in ACRES Commercial Realty, they continue to hold a significant number of shares in both the preferred and common stock categories. The filings provide a snapshot of the ongoing investment decisions made by Eagle Point entities in relation to their holdings in ACRES Commercial Realty.
Investors and market observers often monitor such filings for insights into the actions of significant shareholders and their outlook on the company's financial health and future performance.
In other recent news, ACRES Commercial Realty Corp. reported its Q2 2024 financial results, which spotlighted a net decrease in its loan portfolio and a strategic commitment to enhancing the credit quality of its investments. The company successfully resolved an $8 million defaulted loan, backed by a retail property in New Jersey, and is nearing the completion of a student housing project at Florida State University. ACRES Commercial Realty ended the quarter with a GAAP net income of $1.7 million, a book value per share of $27.20, and $1.7 billion in commercial real estate loans.
The firm also repurchased 115,000 common shares for $1.6 million and has $98.4 million in available liquidity. Despite a net decrease of $61.9 million in its loan portfolio after loan payoffs totaling $71.2 million, ACRES Commercial Realty remains optimistic about its future growth strategy. This includes the potential for asset sales, reinvesting in the loan book, and a possible reinstatement of dividends. As part of their future outlook, the company is actively seeking new origination opportunities. These developments reflect the company's ongoing efforts to deliver value to shareholders and strengthen its financial position.
InvestingPro Insights
As Eagle Point Credit Management LLC and its related entity navigate their investment strategy in ACRES Commercial Realty Corp. (NYSE:ACR), the latest data from InvestingPro provides a broader context on the company's financial performance and market valuation. With a market capitalization of $113.93 million, ACR's current Price/Earnings (P/E) ratio stands at 18.42, reflecting investor sentiment about its earnings potential. For those looking at longer-term metrics, the P/E ratio for the last twelve months as of Q2 2024 is slightly higher at 21.71.
One of the key InvestingPro Tips for ACR is the perfect Piotroski Score of 9, which suggests a strong financial position. This score is particularly relevant as it indicates sound fiscal health and may be a factor in Eagle Point's investment decisions. Additionally, ACR's management has been actively engaging in share buybacks, a move that can often signal confidence in the company's future and potentially increase shareholder value.
ACR's stock price has seen significant appreciation, with a 76.79% return over the past year, which is near its 52-week high, trading at 98.23% of this threshold. This performance aligns with the InvestingPro Tip highlighting the strong return over the last month and the substantial price uptick over the last six months. The robust price performance and the fact that the company is expected to be profitable this year, as per another InvestingPro Tip, may also be of interest to current and prospective investors.
For those seeking more detailed analysis and additional InvestingPro Tips, there are 13 more tips available for ACR at InvestingPro, which can offer further insights into the company's performance and prospects.
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