Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both significant shareholders in ACRES Commercial Realty Corp. (NYSE:ACR), have reported selling a portion of their holdings in the real estate investment trust. According to the latest SEC filings, the firms sold shares valued at approximately $170,285. The sale comes amid ACR's strong performance, with the stock posting a remarkable 65.9% return year-to-date. InvestingPro data shows the company's market capitalization currently stands at $111.8 million, with shares trading at $15.46.
The transactions included the sale of 5,728 shares of 8.625% Series C Preferred Stock at an average price of $25.18 per share on December 19, and an additional 100 shares of the same stock at $25.20 per share on December 20. Additionally, 1,021 shares of 7.875% Series D Preferred Stock were sold at $23.05 per share on December 19. These sales occurred within a price range of $23.05 to $25.20 per share. According to InvestingPro analysis, ACR appears undervalued, trading at just 0.26 times book value. Subscribers can access 8 additional ProTips and comprehensive valuation metrics in the Pro Research Report.
Despite these transactions, Eagle Point retains a substantial position in ACRES Commercial Realty, with over 1.19 million shares of common stock and significant holdings in preferred stock series. The transactions were executed under the indirect ownership of certain private investment funds and accounts managed by Eagle Point.
In other recent news, ACRES Commercial Realty Corp has authorized an additional $5 million for its share repurchase program, allowing the company to continue buying back its common and preferred stock. The company's management has been actively repurchasing shares, with the stock currently trading at a significant discount to book value. The buyback will be executed through various methods, following federal securities laws.
On another note, InPoint Commercial Real Estate Income, Inc. has announced significant changes in its executive leadership. The company appointed Donald MacKinnon as the new Chairman of the Board and Denise C. Kramer as the new CEO following the resignation of Mitchell A. Sabshon.
Turning to financial results, 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.
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