Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC have reported the sale of preferred stock in ACRES Commercial Realty Corp. (NYSE:ACR), with transactions totaling $770,803. These sales occurred on October 16 and 17, 2024, and involved two types of preferred stock.
On October 16, Eagle Point sold 2,803 shares of ACRES Commercial Realty's 8.625% Series C Preferred Stock at an average price of $24.87 per share. Following this transaction, they retained ownership of 499,992 shares of this stock.
Additionally, on the same day, the firm sold 3,506 shares of the 7.875% Series D Preferred Stock at an average price of $23.23 per share. The following day, October 17, they sold another 26,709 shares of the same series at an average price of $23.20 per share. After these transactions, Eagle Point held 931,078 shares of the Series D Preferred Stock.
The sales were conducted by private investment funds and accounts managed by Eagle Point Credit Management LLC, with Eagle Point DIF GP I LLC acting as the general partner for certain accounts. The firms have indicated that they do not claim beneficial ownership of the securities, as detailed in the footnotes of the filing.
In other recent news, Acres Commercial Realty Corp reported a GAAP net income of $1.7 million for the second quarter of 2024, with a book value per share of $27.20. The company highlighted a net decrease in its loan portfolio and an ongoing strategic focus on improving the credit quality of its investments. Jones Trading has initiated coverage on Acres Commercial Realty, assigning a Hold rating to the company's stock. The firm acknowledged Acres Commercial Realty's efforts to enhance its loan portfolio and monetize equity assets in future quarters.
Additionally, InPoint Commercial Real Estate Income, Inc. successfully concluded its 2024 Annual Meeting of Stockholders, resulting in the election of five directors to its Board. The company's stockholders also ratified the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
These are recent developments within Acres Commercial Realty and InPoint Commercial Real Estate Income, Inc. The updates are based on the companies' own reports and analysis from independent sources such as Jones Trading.
InvestingPro Insights
To provide additional context to the recent preferred stock sales by Eagle Point, it's worth examining ACRES Commercial Realty Corp.'s (NYSE:ACR) current financial position and market performance.
According to InvestingPro data, ACR's market capitalization stands at $113.13 million, with the stock trading near its 52-week high at 96.09% of that level. This aligns with an InvestingPro Tip indicating that ACR has seen a high return over the last year, with a remarkable 109.56% price total return for the past 12 months.
The company's financial health appears robust, with an InvestingPro Tip highlighting that ACR's liquid assets exceed short-term obligations. This strong liquidity position may provide reassurance to investors, especially in light of the recent preferred stock transactions.
From a valuation perspective, ACR is trading at a low Price / Book multiple of 0.26, which could suggest the stock is undervalued relative to its assets. This metric, combined with the company's profitability over the last twelve months and analysts' expectations of profitability this year, paints a potentially attractive picture for investors.
It's noteworthy that while Eagle Point has reduced its preferred stock holdings, ACR's management has been aggressively buying back shares, as pointed out by another InvestingPro Tip. This could signal management's confidence in the company's future prospects.
For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for ACR, providing a deeper dive into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.