Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, entities with a significant stake in ACRES Commercial Realty Corp. (NYSE:ACR), have recently divested a portion of their holdings in the company. The transactions, which took place on September 12 and 13, 2024, involved the sale of preferred stock amounting to over $225,000.
The sales were conducted at varying prices, with the price per share for 7.875% Series D Preferred Stock ranging from $22.80 to $22.93, as detailed in the footnotes of the filing. On September 12, a total of 8,300 shares of Series D Preferred Stock were sold at an average price of $22.84 per share. The following day, an additional 1,000 shares of the same series were sold at $22.88 per share. Furthermore, 503 shares of 8.625% Series C Preferred Stock were sold on September 13 at $25.00 per share.
Following these transactions, the entities' holdings in Series D Preferred Stock decreased to 1,000,537 shares. Additionally, their ownership in Series C Preferred Stock was adjusted to 578,365 shares. The entities also reported holding 1,191,307 shares of ACRES Commercial Realty Corp.'s common stock following the sales.
The reporting entities, managed by Eagle Point Credit Management LLC, and Eagle Point DIF GP I LLC acting as the general partner for certain accounts, have indicated that they have an indirect pecuniary interest in the securities mentioned. However, they have disclaimed beneficial ownership of the reported securities, as clarified in the footnotes of the SEC filing.
Investors and market watchers often scrutinize such filings for insights into the actions of significant stakeholders in public companies. The sale of these preferred shares by Eagle Point entities is no exception and will likely be of interest to those following the financial maneuvers within ACRES Commercial Realty Corp.
In other recent news, InPoint Commercial Real Estate Income, Inc. announced the conclusion of its 2024 Annual Meeting of Stockholders, according to a recent SEC filing. The meeting resulted in the election of five directors to its Board, including Mitchell A. Sabshon, Donald MacKinnon, Norman A. Feinstein, Cynthia Foster Curry, and Robert N. Jenkins. Furthermore, stockholders ratified the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
Simultaneously, ACRES Commercial Realty Corp. reported its financial outcomes for the Second Quarter of 2024. The company noted a net decrease in its loan portfolio and a strategic focus on enhancing the credit quality of its investments. ACRES Commercial Realty resolved a defaulted loan and is actively managing real estate investments, including a student housing development at Florida State University. The company recorded a GAAP net income of $1.7 million and a book value per share of $27.20. Future plans include selling assets, reinvesting in the loan book, and potentially reinstating dividends.
These are recent developments in the respective companies and provide insight into their ongoing operations and strategic plans.
InvestingPro Insights
As Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC adjust their stakes in ACRES Commercial Realty Corp. (NYSE:ACR), investors may find additional context in the company's financial metrics and market performance. According to InvestingPro data, ACRES Commercial Realty Corp. has a market capitalization of $111.89 million, reflecting the company's size and market value. The company's Price to Earnings (P/E) ratio stands at 18.18, indicating how much investors are willing to pay for one dollar of earnings, with a forward-looking P/E ratio for the last twelve months as of Q2 2024 at 21.44.
One notable InvestingPro Tip highlights that ACRES Commercial Realty Corp. has a perfect Piotroski Score of 9, suggesting strong financial health and operational efficiency. In addition, management's aggressive share buyback strategy, as noted in another InvestingPro Tip, could signal confidence in the company's future prospects and a commitment to enhancing shareholder value. These buybacks, coupled with the expectation of net income growth this year, provide a positive outlook for the company's financial trajectory.
ACRES Commercial Realty Corp. also boasts a high return over the last year, with a 1-year price total return of 85.3%. This performance is particularly impressive and may interest investors looking for companies with strong momentum. For those seeking more in-depth analysis, additional InvestingPro Tips related to ACRES Commercial Realty Corp. are available, offering insights into the company's profitability, asset liquidity, and analysts' profitability predictions for the current year.
To explore further insights and tips that could inform investment decisions regarding ACRES Commercial Realty Corp., interested parties can access a comprehensive suite of data and analysis on InvestingPro.
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