Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both significant stakeholders in ACRES Commercial Realty Corp. (NYSE:ACR), have recently sold shares in the real estate investment trust. The sales, which occurred on July 23 and July 25, amounted to a total of $12,028, with shares sold at a price of $24.75 each.
The transactions involved the sale of 8.625% Series C Preferred Stock of ACRES Commercial Realty Corp. Following the sales, the entities continue to hold a substantial number of shares in the company. These sales are part of the regular investment activities of Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, which manage various private investment funds and accounts.
The indirect ownership nature of the shares sold is attributed to the securities being directly held by private investment funds and accounts managed by Eagle Point Credit Management LLC. Eagle Point DIF GP I LLC serves as the general partner to some of these accounts. Both entities could be deemed to have an "indirect pecuniary interest" in the securities sold, as they are involved in the management of funds that hold these securities.
It is important to note that Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC have disclaimed beneficial ownership of the securities described in the report. This disclaimer is in accordance with Rule 16a-1(a)(4) under the Securities Exchange Act of 1934, indicating that the inclusion of these securities in the report is not an admission of beneficial ownership for any purpose.
Investors and market watchers often pay close attention to the buying and selling activities of major stakeholders like Eagle Point entities, as these can sometimes provide insights into the entities' views on the issuer's future prospects. However, the reasons behind these transactions can vary and may not necessarily reflect a change in the outlook on the company by the management entities.
The signatures of Kenneth P. Onorio, Chief Financial Officer of both Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, were provided on the SEC filing dated July 25, 2024, confirming the accuracy of the reported transactions.
In other recent news, ACRES Commercial Realty has unveiled its Q1 2024 financial results, demonstrating a strategic decrease in its loan portfolio alongside a consistent performance in its commercial real estate investments. The firm reported a net income allocable to common shares of $556,000 or $0.07 per share, and announced plans to reinstate dividends and continue share buybacks as part of its capital return strategy.
The company also reported a net decrease in its loan portfolio by $69.4 million, ending the quarter with a robust $1.8 billion commercial real estate loan portfolio across 66 investments. ACRES is focusing on monetizing assets to leverage its net operating losses and targets a return on book value of 10%.
The firm has reduced its debt-to-equity leverage ratio to 3.7 times, and plans to reinstate dividends after the full utilization of net operating losses. Despite a $1.7 million drop in real estate income, mainly due to seasonal variations in the hotel sector, ACRES is not delaying asset sales and sees favorable market conditions for monetization.
These are among the recent developments as ACRES navigates changing market conditions while maintaining a steady performance.
InvestingPro Insights
Amid the recent share sales by significant stakeholders in ACRES Commercial Realty Corp. (NYSE:ACR), investors might be seeking additional data to better understand the company's financial health and market position. Here are some key metrics and insights from InvestingPro that could provide further clarity:
ACRES Commercial Realty Corp. is currently trading at a low Price to Book (P/B) multiple of 0.24 as of the last twelve months as of Q1 2024, suggesting the market may be undervaluing the company's assets relative to its share price. Furthermore, the company's P/E ratio stands at 19.29, which, when coupled with its low PEG ratio of 0.1 for the same period, indicates that the stock may be attractively priced relative to its earnings growth.
InvestingPro Tips highlight that management has been actively repurchasing shares, which could signal confidence in the company's future prospects. Additionally, analysts predict ACRES Commercial Realty Corp. will be profitable this year, aligning with the company's performance over the last twelve months.
The company's market capitalization, adjusted to reflect recent changes, is currently $105.44M USD. With a solid gross profit margin of 49.34% for the last twelve months as of Q1 2024, ACRES Commercial Realty Corp. appears to maintain a healthy profit on its revenue. Moreover, the company has experienced a substantial price increase over the last six months, with a 43.38% total return, indicating strong market momentum.
For investors seeking a comprehensive analysis, there are additional InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/ACR. These tips delve deeper into the company's financials and market performance. For a limited time, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes these valuable insights. With a total of 12 additional InvestingPro Tips listed, subscribers can gain a more nuanced understanding of ACRES Commercial Realty Corp.'s investment potential.
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