ACRES Commercial Realty (NYSE:ACR) Posts Quarterly Earnings Results, Hits Expectations

ACRES Commercial Realty (NYSE:ACR) released its quarterly earnings data on Thursday. The company reported $0.02 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.02, FiscalAI reports. ACRES Commercial Realty had a net margin of 37.20% and a return on equity of 5.85%. The firm had revenue of $17.82 million during the quarter, compared to analysts’ expectations of $20.55 million.

Here are the key takeaways from ACRES Commercial Realty’s conference call:

• Completed $1 billion CRE securitization (ACRES 2026-FL4) with 86.5% leverage at SOFR+1.68% and a 30-month reinvestment period; ramp-up investments finished and the full run-rate benefit is expected in Q2.
• Announced the internalization/combination with ACRES, with management and employees to hold >40% of the combined company and asset-management fees flowing up to the public entity to support EAD and future dividends.
• Sold a Greater Philadelphia real estate asset for a $3.3 million GAAP gain, and management cites real estate gains, repurchases, and retained earnings as having increased book value 66% since 2020 to $29.98 per share.
• Grew the loan portfolio by $374.4 million to $2.2 billion across 60 loans, with a weighted average spread of 3.29% over one?month SOFR and over half the portfolio protected by SOFR floors above 3%.
• GAAP net loss attributable to common of $1.0 million ($0.16/share) in Q1, driven by lower net interest income during the securitization ramp-up and lower fee recognition, and reported available liquidity of $87 million while management says the company is “fully invested.”

ACRES Commercial Realty Stock Performance

Shares of NYSE ACR traded up $0.87 during trading hours on Friday, reaching $21.96. The stock had a trading volume of 36,040 shares, compared to its average volume of 16,836. The firm has a market cap of $156.57 million, a price-to-earnings ratio of 2,198.20 and a beta of 1.10. The company has a current ratio of 135.18, a quick ratio of 135.18 and a debt-to-equity ratio of 2.81. ACRES Commercial Realty has a fifty-two week low of $17.06 and a fifty-two week high of $24.61. The firm has a 50-day moving average of $19.32 and a 200-day moving average of $20.25.

Insiders Place Their Bets

In related news, major shareholder Eagle Point Credit Management sold 2,954 shares of the stock in a transaction on Monday, March 16th. The shares were sold at an average price of $22.07, for a total transaction of $65,194.78. Following the completion of the sale, the insider owned 739,023 shares in the company, valued at $16,310,237.61. This represents a 0.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In the last ninety days, insiders have sold 19,160 shares of company stock worth $440,039. 3.92% of the stock is owned by corporate insiders.

Institutional Trading of ACRES Commercial Realty

Hedge funds have recently added to or reduced their stakes in the stock. Eagle Point Credit Management LLC acquired a new position in shares of ACRES Commercial Realty in the fourth quarter valued at approximately $25,118,000. Vanguard Group Inc. increased its stake in ACRES Commercial Realty by 3.1% in the third quarter. Vanguard Group Inc. now owns 383,696 shares of the company’s stock valued at $8,119,000 after purchasing an additional 11,465 shares during the last quarter. Geode Capital Management LLC increased its stake in ACRES Commercial Realty by 125.1% in the second quarter. Geode Capital Management LLC now owns 137,996 shares of the company’s stock valued at $2,476,000 after purchasing an additional 76,688 shares during the last quarter. State Street Corp increased its stake in ACRES Commercial Realty by 8.5% in the fourth quarter. State Street Corp now owns 86,053 shares of the company’s stock valued at $1,836,000 after purchasing an additional 6,713 shares during the last quarter. Finally, Raymond James Financial Inc. increased its stake in ACRES Commercial Realty by 2.5% in the third quarter. Raymond James Financial Inc. now owns 80,129 shares of the company’s stock valued at $1,696,000 after purchasing an additional 1,979 shares during the last quarter. 40.03% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

ACR has been the subject of several recent analyst reports. Wall Street Zen upgraded shares of ACRES Commercial Realty from a “strong sell” rating to a “sell” rating in a research report on Saturday, April 18th. Weiss Ratings cut ACRES Commercial Realty from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, April 14th. Two equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $24.50.

About ACRES Commercial Realty

ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and equity investments in commercial real estate property in the United States. It invests in commercial real estate-related assets, including floating-rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine financing, preferred equity investments, and commercial mortgage-backed securities.