UNIONDALE, N.Y. - ACRES Commercial Realty Corp. (NYSE: ACR), a real estate investment trust (REIT), has announced the authorization of an additional $5 million for its share repurchase program. The program allows the company to continue repurchasing its common and preferred stock. According to InvestingPro data, management has been actively buying back shares, with the stock currently trading at a significant discount to book value at just 0.25x.
The buyback will be executed through various methods, including open market purchases, privately negotiated transactions, and block purchases, following the rules set by the federal securities laws, specifically Rule 10b-18 and 10b5-1 of the Securities Exchange Act of 1934.
The timing and volume of repurchases are subject to the company's management discretion, based on market conditions and other relevant factors. As such, there is no guarantee as to the exact number of shares that will be repurchased.
ACRES Commercial Realty specializes in originating, holding, and managing commercial real estate mortgage loans, as well as direct ownership and joint venture equity investments in commercial properties. The REIT is managed by ACRES Capital, LLC, which is a subsidiary of ACRES Capital Corp., a private lender focused on middle market commercial real estate lending across various sectors, including multifamily, student housing, hospitality, industrial, and office properties. With a market capitalization of $110 million and a "GOOD" financial health score from InvestingPro, the company has demonstrated strong performance with a 64% year-to-date return. Discover more insights and 8 additional ProTips with an InvestingPro subscription.
The press release includes forward-looking statements, which involve certain risks, uncertainties, and contingencies that could cause actual results to differ materially from those projected. The company has stated that it does not intend to update these forward-looking statements in the future except as required by law.
This expansion of the share repurchase program is based on a press release statement from ACRES Commercial Realty Corp. and is intended to provide shareholders with a potential increase in value through the reduction of outstanding shares. Based on InvestingPro's Fair Value analysis, the stock appears to be undervalued, suggesting potential upside for investors.
In other recent news, significant changes have occurred within InPoint Commercial Real Estate Income, Inc. and ACRES Commercial Realty Corp. InPoint announced the appointment of a new CEO and Chairman following the resignation of Mitchell A. Sabshon. Donald MacKinnon, presently the President and a Board member, will take on the role of Chairman, while Denise C. Kramer, President of InPoint's advisor, Inland InPoint Advisor, LLC, will step into the CEO position.
Meanwhile, ACRES Commercial Realty Corp reported its third-quarter financial results for 2024, revealing a net decrease in its loan portfolio and a dip in earnings available for distribution. However, the company's GAAP book value per share saw a slight increase. Management emphasized a focus on asset monetization and credit quality improvement, with plans to redeploy capital into new loans in the future.
These recent developments highlight the ongoing changes and strategies within both companies. As InPoint Commercial Real Estate navigates its leadership transition, ACRES Commercial Realty Corp is concentrating on improving its financial standing amid challenging market conditions. Investors may find these updates significant as they indicate the companies' strategic directions and potential future performance.
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