ACRES Commercial Realty Sees Major Shareholder Sell Stock Amid Mixed Q2 Earnings

Eagle Point Credit Management LLC sold 14,735 shares of ACRES Commercial Realty stock for $328,417 on August 1, 2025. The company reported a GAAP net loss of $732,000 in Q2 earnings but increased net interest income and closed a new $72 million loan commitment. Analysts have mixed views on the stock, with some maintaining a neutral outlook due to high P/E ratio and financial losses, while others see potential in the company's growth plans.

ACRES Commercial Realty Corp (ACR) reported its second quarter 2025 earnings, revealing a GAAP net loss of $732,000, or $0.10 per diluted share. However, the company also reported an increase in net interest income by $3 million over the prior quarter, driven by lower financing costs. Additionally, the company closed a new commitment of $72 million, contributing to a net increase in the loan portfolio by $60.5 million [1].

The earnings call highlighted several key points. The company reported an improvement in net real estate operations by $1.9 million over the prior quarter, largely due to better performance of owned hotels. ACRES Commercial Realty Corp repurchased 272,000 common shares at a 33% discount to book value, indicating confidence in its valuation [1].

The company's balance sheet showed a GAAP book value per share decreasing from $28.50 on March 31st to $27.93 on June 30th. The debt to equity leverage ratio increased slightly to 3 times, indicating higher leverage. There is no specific timeline for reinstating the dividend, as it depends on monetizing assets and achieving target earnings available for distribution [1].

On August 1, 2025, Eagle Point Credit Management LLC sold 14,735 shares of ACRES Commercial Realty stock for $328,417. Analysts have mixed views on the stock, with some maintaining a neutral outlook due to high P/E ratio and financial losses, while others see potential in the company's growth plans [2].

References:
[1] https://finance.yahoo.com/news/acres-commercial-realty-corp-acr-072333278.html
[2] https://www.investing.com/news/company-news/acres-commercial-realty-q2-2025-slides-narrowing-losses-amid-portfolio-growth-93CH-4161358