Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both significant stakeholders in ACRES Commercial Realty Corp. (NYSE:ACR), have disclosed the sale of a portion of their holdings in the company. According to a recent SEC filing, the firms sold a total of 729 shares of ACRES' 8.625% Series C Preferred Stock over two days—129 shares on November 4 and 600 shares on November 5—at a consistent price of $24.94 per share. The total value of these transactions amounted to $18,181.
Post-transaction, Eagle Point entities continue to hold significant positions in ACRES Commercial Realty, with 486,168 shares of the Series C Preferred Stock remaining in their portfolios. Additionally, they retain holdings in other securities of ACRES, including 921,078 shares of 7.875% Series D Preferred Stock and 1,191,307 shares of common stock. These transactions highlight the ongoing portfolio adjustments by Eagle Point in its investment strategy concerning ACRES Commercial Realty.
In other recent news, ACRES Commercial Realty Corp disclosed its Q3 2024 financial results, highlighting several key developments. The company's loan portfolio saw a net decrease of $134.4 million, resulting in a current value of $1.6 billion. Earnings available for distribution (EAD) per share dipped to $0.24 from the previous quarter's $0.51, while the GAAP book value per share slightly increased to $27.92. The company also reported a GAAP net income of $2.8 million or $0.36 per share for the quarter.
In terms of strategic moves, ACRES has been focusing on asset monetization and credit quality improvement. The company has plans to redeploy capital into new loans, aiming for mid to high teens return on equity (ROE) outcomes despite current market conditions. A student housing development near Florida State University, which opened at high occupancy, is set to be marketed for sale.
These recent developments come as part of ACRES' broader strategy. The firm anticipates a potential return to a market-based dividend as capital is redeployed. Additionally, the management is preparing to sell a student housing asset and three other assets in the upcoming quarters. These actions underscore ACRES' commitment to navigating a challenging environment while leveraging its strong liquidity and favorable past financing costs.
InvestingPro Insights
While Eagle Point entities have reduced their holdings in ACRES Commercial Realty Corp. (NYSE:ACR), recent data from InvestingPro suggests the company may still present interesting opportunities for investors. ACR's stock has shown remarkable performance, with a one-year price total return of 107.59% as of the latest data. This aligns with an InvestingPro Tip indicating a "high return over the last year."
Moreover, ACR is currently trading at a low Price / Book multiple of 0.27, which could signal potential undervaluation. This metric, combined with the company's price-to-earnings ratio of 18.37, may attract value-oriented investors.
InvestingPro Tips also highlight that management has been aggressively buying back shares, which often signals confidence in the company's future prospects. Additionally, ACR's liquid assets exceed short-term obligations, suggesting a strong financial position.
For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips for ACRES Commercial Realty Corp., providing a deeper understanding of the company's financial health and market position.
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