Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both significant stakeholders in ACRES Commercial Realty Corp. (NYSE:ACR), have reported selling a portion of their holdings. According to the recent SEC filing, the firms collectively sold 1,674 shares of ACRES' 8.625% Series C Preferred Stock. The transaction, carried out on November 21, 2024, fetched a total of $42,034, with shares sold at an average price of $25.11 each. Following the sale, the entities hold 471,793 shares of the Series C Preferred Stock. Eagle Point also maintains positions in other securities of ACRES, including 909,783 shares of 7.875% Series D Preferred Stock and 1,191,307 shares of Common Stock.
In other recent news, ACRES Commercial Realty Corp reported its financial results for the third quarter of 2024. The company's loan portfolio experienced a net decrease of $134.4 million, now valued at $1.6 billion. The GAAP net income was $2.8 million, or $0.36 per share, while earnings available for distribution (EAD) per share decreased to $0.24. Despite these changes, the GAAP book value per share increased to $27.92 and liquidity remained strong at $79 million.
In other recent developments, InPoint Commercial Real Estate Income, Inc. announced the appointment of a new CEO and Chairman. Following the resignation of Mitchell A. Sabshon, the Board appointed Donald MacKinnon as the new Chairman of the Board. Denise C. Kramer, President of InPoint Commercial Real Estate Income's advisor, Inland InPoint Advisor, LLC, will step into the role of CEO and join the Board starting December 1, 2024. These changes in leadership come at a time when the real estate investment trust sector continues to navigate the complexities of the market.
Both companies are in the midst of significant changes, with ACRES Commercial Realty Corp focusing on asset monetization and credit quality improvement, and InPoint Commercial Real Estate Income, Inc. undergoing a leadership transition.
InvestingPro Insights
While Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC have reduced their holdings in ACRES Commercial Realty Corp.'s (NYSE:ACR) preferred stock, the company's common stock has shown remarkable performance. According to InvestingPro data, ACR has delivered a staggering 120.98% price total return over the past year, with a 74.12% return year-to-date. This strong performance has pushed the stock to trade at 100% of its 52-week high, indicating significant investor confidence.
Despite the recent sale by major stakeholders, ACR's financial metrics suggest a company with solid fundamentals. The company boasts a gross profit margin of 46.22% for the last twelve months as of Q3 2024, coupled with an operating income margin of 20.12% for the same period. These figures point to efficient operations and cost management.
InvestingPro Tips highlight that ACR is trading at a low Price / Book multiple of 0.28, which could suggest the stock is undervalued relative to its assets. Additionally, the company's liquid assets exceed short-term obligations, indicating a strong financial position. These factors, combined with analysts' predictions of profitability this year, paint a picture of a company with potential for continued growth.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for ACR, providing deeper insights into the company's financial health and market position.
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