ACRES Commercial Realty Corp. (NYSE:ACR) investors may be interested to know that Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both major shareholders of the real estate investment trust, recently sold a significant number of preferred shares. The transactions, which occurred over a three-day period, resulted in the sale of 8.625% of ACRES Commercial Realty’s Series C preferred stock at prices ranging from $24.91 to $24.92 per share.
The total value of shares sold by the Eagle Point companies was over $144,539. Specifically, 2,100 shares were sold on August 26, followed by a sale of 2,502 shares on August 27 and another 1,200 shares on August 28. These sales were executed at a weighted average price, with each transaction occurring within a narrow price range, as described in the footnotes of the SEC filing.
It is important to note that the shares are held directly by certain private investment funds and accounts managed by Eagle Point Credit Management LLC. Eagle Point DIF GP I LLC acts as the general partner for some of these accounts. Both entities could be considered to have an “indirect financial interest” in the securities reported here. However, they have disclaimed beneficial ownership of the securities under Rule 16a-1(a)(4) under the Securities Exchange Act of 1934.
Following these transactions, the Eagle Point companies continue to hold a significant number of shares in both the preferred and common stock categories of ACRES Commercial Realty Corp. The reported sales reflect a portion of their holdings and are part of regular investment management activities. The SEC filing, signed by Kenneth P. Onorio, Chief Financial Officer of both Eagle Point companies, provides the market with a transparent report of these transactions.
In other recent news, ACRES Commercial Realty Corp. reported its financial results for the second quarter of 2024, reporting GAAP net income of $1.7 million and book value per share of $27.20. The company reported a net decrease of $61.9 million in its loan portfolio following loan repayments totaling $71.2 million. A notable development was the resolution of an $8 million loan secured by a retail property in New Jersey.
ACRES Commercial Realty is also actively managing real estate investments, including a student housing project at Florida State University that is nearing completion. The company ended the quarter with $1.7 billion in commercial real estate loans and $98.4 million in available liquidity.
As part of its strategic plans, ACRES Commercial Realty is considering selling assets, reinvesting in the loan book and potentially reinstating dividends. The company is currently working with First Mortgage Special Service to determine the outcome of a mezzanine loan on an office building in Pittsburgh. Despite these recent developments, the timing of the asset sale and reinstatement of dividends remains uncertain.
InvestingPro Insights
As ACRES Commercial Realty Corp. (NYSE:ACR) dominates the market, investors are closely watching the company’s performance and strategic moves. With recent stock transactions by major shareholders, it is important to consider key financial metrics and insights that could shed light on ACR’s current position and future prospects.
InvestingPro’s data highlights ACR’s market capitalization, which currently stands at a modest $114.88 million. With a price-to-earnings (P/E) ratio of 18.7, the company appears to be valued by the market at a level that suggests moderate expectations for future earnings growth. However, the trailing twelve-month adjusted P/E ratio from Q2 2024 is slightly higher at 22.04, suggesting a possible reassessment of the company’s earnings capacity in the future.
One of the most important InvestingPro picks for ACR is its perfect Piotroski Score of 9, which suggests the company is financially healthy and less likely to run into financial trouble in the near future. In addition, management’s aggressive share buyback program can be seen as a vote of confidence in the company’s value, potentially signaling to investors that the stock is undervalued.
ACR’s recent performance also shows a robust return over the past year, with a 1-year total return of 84.56% and a strong return over the past three months of 25.54%. These numbers underscore the company’s impressive share price gains and are in line with InvestingPro’s tip, which highlights ACR’s big price increase over the past six months.
For investors seeking more comprehensive analysis and additional InvestingPro tips, 12 additional tips addressing various aspects of ACR’s financial health and market performance are available through InvestingPro’s platform and provide valuable insight for making informed investment decisions.
With ACR trading near its 52-week high and the price at 97.83% of that peak, investors should consider whether the company’s growth trajectory and financial stability justify its current market valuation. With revenue growth of 13.82% in the trailing twelve months to Q2 2024, ACR shows that it has the ability to grow its revenue, although it is important to note the quarterly revenue decline of -6.32% for Q2 2024, which requires closer scrutiny.
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