Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both ten percent owners, have reported sales of ACRES Commercial Realty Corp. (NYSE:ACR) preferred shares, totaling $150,782. The transactions, disclosed in a recent filing, involved the sale of 8.625% Series C and 7.875% Series D Preferred Stock over several days in early November.
On November 7, the firms sold 1,301 shares of Series C Preferred Stock at $24.98 each and 11 shares of Series D Preferred Stock at $23.33 each. This was followed by a sale of 2,249 shares of Series D Preferred Stock at $23.30 on November 8. The most significant transaction occurred on November 11, with 2,625 shares of Series C Preferred Stock sold at a price range of $24.98 to $25.05 per share.
Following these transactions, Eagle Point's holdings in ACRES Commercial Realty include 484,867 shares of Series C Preferred Stock, 918,818 shares of Series D Preferred Stock, and 1,191,307 shares of common stock. The sales were reported as indirect ownership, with the firms disclaiming beneficial ownership of the securities.
In other recent news, ACRES Commercial Realty Corp reported its Q3 2024 financial results, revealing a net decrease in its loan portfolio by $134.4 million, now valued at $1.6 billion, and a dip in earnings available for distribution (EAD) to $0.24 per share, down from $0.51 in the previous quarter. However, the GAAP book value per share saw a slight increase to $27.92. The company maintained strong liquidity, standing at $79 million with a debt-to-equity leverage ratio of 3.3 times. According to CEO Mark Fogel and CFO Eldron Blackwell, ACRES is focusing on asset monetization and credit quality improvement, with plans to redeploy capital into new loans.
Additionally, the company is preparing to sell a student housing asset and three other assets in the upcoming quarters. A student housing development near Florida State University, which opened at high occupancy, is also planned to be marketed for sale. The company spent $1.7 million on share repurchases, with $2.3 million remaining in the buyback program. These are some of the recent developments in ACRES Commercial Realty Corp.
InvestingPro Insights
While Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC have reduced their preferred share holdings in ACRES Commercial Realty Corp. (NYSE:ACR), the company's financial metrics and market performance paint an interesting picture for investors.
According to InvestingPro data, ACR's market capitalization stands at $117.51 million, with the stock trading at a remarkably low Price to Book ratio of 0.27 as of the last twelve months ending Q3 2024. This valuation metric aligns with one of the InvestingPro Tips, which highlights that ACR is "Trading at a low Price / Book multiple." This could potentially indicate that the stock is undervalued relative to its book value.
Furthermore, ACR has demonstrated strong performance, with a one-year price total return of 111.84% as of the most recent data. This impressive return is reflected in another InvestingPro Tip, which notes a "High return over the last year." The company's stock price is currently at 95.1% of its 52-week high, suggesting continued investor confidence despite the insider sales reported.
It's worth noting that while the company has shown solid financial performance, with revenue growth of 8.77% over the last twelve months and a healthy gross profit margin of 46.22%, ACR "Does not pay a dividend to shareholders" according to an InvestingPro Tip. This may be of interest to income-focused investors considering the stock.
For those seeking a more comprehensive analysis, InvestingPro offers additional insights with 6 more tips available for ACR, providing a deeper understanding of the company's financial health and market position.
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