ACRES Commercial Realty (NYSE:ACR) Posts Earnings Results, Misses Expectations By $0.15 EPS

Key Points

• ACRES reported Q1 EPS of $0.02 versus consensus $0.17 and revenue of $17.82M versus $20.55M, recording a GAAP net loss attributable to common of $1.0M ($0.16/share).
• The company completed a $1 billion CRE securitization (ACRES 2026-FL4)40% of the combined company and asset-management fees will flow to the public entity to support future dividends.
• ACRES grew its loan portfolio by $374.4M to a $2.2 billion portfolio across 60 loans (weighted average spread 3.29% over 1‑month SOFR, over half protected by SOFR floors >3%) and realized a $3.3M GAAP gain on a Philadelphia sale, citing a 66% increase in book value since 2020 to $29.98 per share.

ACRES Commercial Realty (NYSE:ACR - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.02 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.17 by ($0.15), FiscalAI reports. The business had revenue of $17.82 million during the quarter, compared to analysts' expectations of $20.55 million. ACRES Commercial Realty had a net margin of 31.78% and a return on equity of 4.55%.

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 Up 4.1%

ACR stock traded up $0.87 on Friday, reaching $21.96. 36,040 shares of the company traded hands, compared to its average volume of 21,570. The firm has a fifty day simple moving average of $19.32 and a 200-day simple moving average of $20.25. The company has a market cap of $156.57 million, a P/E ratio of 2,198.20 and a beta of 1.11. ACRES Commercial Realty has a one year low of $17.06 and a one year high of $24.61. The company has a debt-to-equity ratio of 2.81, a current ratio of 135.18 and a quick ratio of 135.18.

Insider Activity at ACRES Commercial Realty

In other news, major shareholder Eagle Point Credit Management sold 2,954 shares of ACRES Commercial Realty stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $22.07, for a total value of $65,194.78. Following the completion of the transaction, the insider owned 739,023 shares of the company's stock, valued at $16,310,237.61. The trade was a 0.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders sold 19,160 shares of company stock valued at $440,039 over the last 90 days. Corporate insiders own 3.92% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Eagle Point Credit Management LLC bought a new stake in shares of ACRES Commercial Realty during the fourth quarter valued at approximately $25,118,000. Geode Capital Management LLC increased its holdings in shares of ACRES Commercial Realty by 125.1% in the 2nd quarter. Geode Capital Management LLC now owns 137,996 shares of the company's stock worth $2,476,000 after purchasing an additional 76,688 shares in the last quarter. Raymond James Financial Inc. raised its stake in shares of ACRES Commercial Realty by 60.6% in the second quarter. Raymond James Financial Inc. now owns 78,150 shares of the company's stock worth $1,402,000 after purchasing an additional 29,503 shares during the last quarter. Jane Street Group LLC raised its stake in shares of ACRES Commercial Realty by 190.8% in the first quarter. Jane Street Group LLC now owns 38,434 shares of the company's stock worth $833,000 after purchasing an additional 25,216 shares during the last quarter. Finally, Goldman Sachs Group Inc. bought a new stake in ACRES Commercial Realty in the 1st quarter worth about $488,000. Institutional investors own 40.03% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have commented on ACR shares. Weiss Ratings lowered ACRES Commercial Realty from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, April 14th. Wall Street Zen upgraded ACRES Commercial Realty from a "strong sell" rating to a "sell" rating in a research report on Saturday, April 18th. Two research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $24.50.

ACRES Commercial Realty Company Profile

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.

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