Eagle Point Credit Management Sells ACRES Commercial Realty Corp. Preferred Shares Worth $237,702
Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, indirect owners of ACRES Commercial Realty Corp. (NYSE:ACR) stock, have recently sold a significant amount of the company's preferred shares. The total value of the sold shares is $237,702, with prices ranging from $23.61 to $24.91 per share.
ACRES Commercial Realty Corp., a real estate investment trust, saw transactions involving its 8.625% Series C Preferred Stock and 7.875% Series D Preferred Stock. The shares were sold at an average price of $24.87 on August 21 and August 22, while prices ranged from $24.88 to $24.97 for Series C and $23.65 to $23.70 for Series D on August 23.
Despite these sales, Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC still retain a substantial number of shares in ACRES Commercial Realty Corp. The companies have disclaimed beneficial ownership of the reported securities, indicating a potential strategic adjustment in their investment portfolios.
ACRES Commercial Realty Corp. released its financial results for Q2 2024, reporting a GAAP net income of $1.7 million and a book value per share of $27.20. The company noted a net decrease of $61.9 million in its loan portfolio due to payoffs and successfully resolved a defaulted $8 million loan.
Looking ahead, ACRES Commercial Realty is considering asset sales, reinvesting in the loan book, and reinstating dividends after redeploying equity capital. These strategic moves aim to enhance the credit quality of the company's investments.
InvestingPro Insights:
- ACR boasts a market capitalization of $114.44 million and a P/E ratio of 18.66, suggesting potential undervaluation.
- Management's active share buybacks indicate confidence in the company's intrinsic value.
- A high price total return of 86.67% over the last year highlights strong investor sentiment.
- Revenue growth of 13.82% over the last twelve months reflects positive business operations, despite a slight decline in quarterly revenue growth.
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Analysis:
This article discusses the recent sale of ACRES Commercial Realty Corp.'s preferred shares by Eagle Point Credit Management, highlighting potential strategic adjustments in their investment portfolios. ACRES Commercial Realty's Q2 2024 financial results show a focus on managing real estate investments and enhancing credit quality. Investors can leverage InvestingPro's insights to assess ACR's investment potential, including market capitalization, P/E ratio, revenue growth, and management activities like share buybacks. These insights can help investors make informed decisions regarding ACR stock and understand its impact on their finances.