ACRES Commercial Realty Corp. (ACR) Market Cap
ACRES Commercial Realty Corp. has a market capitalization of $148.6M.
Financials based on reported quarter end 2025-12-31
Price: $20.40
▲ 0.55 (2.77%)
Market Cap: 148.63M
NYSE · time unavailable
CEO: Mark Steven Fogel
Sector: Real Estate
Industry: REIT - Mortgage
IPO Date: 2006-02-07
Website: https://www.acresreit.com
ACRES Commercial Realty Corp. (ACR) - Company Information
Market Cap: 148.63M · Sector: Real Estate
ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and other commercial real estate-related debt investments in the United States. It invests in commercial real estate-related assets, including floating and fixed rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine debt, preferred equity investments, commercial mortgage-backed securities, and commercial real estate equity and preferred equity investments. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income. The company was formerly known as Exantas Capital Corp. and changed its name to ACRES Commercial Realty Corp. in February 2021. ACRES Commercial Realty Corp. was incorporated in 2005 and is based in Uniondale, New York.
Analyst Sentiment
Based on 3 ratings
Analyst 1Y Forecast: $24.50
Average target (based on 2 sources)
Consensus Price Target
Low
$25
Median
$25
High
$25
Average
$25
Potential Upside: 20.1%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"ACR reported revenue of $105.99M and a net income of $2.244M for 2025. The company has total assets of $2.162B and total liabilities of $1.612B, resulting in total equity of $550.575M. ACR's operating cash flow stands at $6.316M, with a free cash flow of approximately $6.262M. Although ACR provided dividend payments in the past, it reported a negative net income per share of -$0.43. The stock price is currently at $19, reflecting a 1-year decline of 14.26%, indicating a challenging market performance in recent times. Overall, ACR displays a mixed financial profile with commendable revenue figures but ongoing losses, raising concerns about profitability and shareholder returns as the company navigates its path forward."
Revenue Growth
Steady revenue at $105.99M shows potential for moderate growth.
Profitability
Negative EPS of -$0.43 suggests ongoing profitability challenges.
Cash Flow Quality
Positive operating cash flow of $6.316M indicates reasonable liquidity.
Leverage & Balance Sheet
Moderate leverage with net debt at $1.504B relative to equity.
Shareholder Returns
Negative 1-year change of -14.26% reflects poor shareholder returns.
Analyst Sentiment & Valuation
Current price of $19 underperforms against a target consensus of $24.5.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management presented steady portfolio underwriting and improved risk metrics, highlighted by Q4 net loan growth of $443.8M and a lower weighted-average risk rating to 2.7 (vs 3.0). They also framed credit outcomes as largely resolved, with 21 legacy 4/5-rated loans resolved (par $368M) for only $4.8M loss (~1.3%). However, the Q&A pressure centered on what drives returns and what could go wrong: spreads are coming down on the multifamily side, and credit modeling is sensitive to macro—CECL improved but only partially, with a “general decline” in macro factors offsetting some reserve release. The biggest near-term earnings overhang was candidly quantified: a $4.7M mezzanine loan EAD loss (fully reserved in 2022) drove EAD down to a loss of ($0.48)/share including the item, versus $1.01/share in Q3. While 2026 deployment is projected at $500M–$700M, the pace is tied to CLO execution mechanics and a mix shift beyond multifamily, leaving execution and yield-risk as the key watch items.
Growth Catalysts
- Net CRE loan portfolio growth: $443.8M net increase (Q4: $571.0M new commitments less $127.2M payoffs/net unfunded)
- Weighted average spread on newly originated loans: 2.83% in Q4
- Improving credit profile: weighted average risk rating fell to 2.7 (from 3.0 at 9/30)
- Resolution of legacy 4/5-rated assets: 21 loans resolved (par $368.0M) with only $4.8M loss (~1.3% of par)
Business Development
- CLO execution setup: management stated CLO execution in January depends heavily on multifamily
- ACRES 2026-FL4 securitization closed Feb 12: $1.0B deal, 86.5% leverage, weighted average debt spread 1.68%
- NCI change: company sold a portion of previously issued financing arrangement with JPMorgan (recorded as non-controlling interest)
Financial Highlights
- GAAP net loss allocable to common: $3.0M, or ($0.43)/share in Q4
- Earnings available for distribution (EAD): $0.20/share excluding fully reserved mezzanine loan; including mezzanine loan EAD loss of ($0.48)/share vs $1.01/share in Q3
- CECL reserve decreased $1.3M (~$0.19/share) in Q4; CECL reserve decrease was $4.0M in Q3 (Q4 drivers: payoffs/net model improvements partially offset by general decline in macro factors)
- Total allowance for credit losses at 12/31: $20.4M = 1.11% (111 bps) of $1.8B loan portfolio at par; composed entirely of general credit reserves
- Risk metrics: loans rated 4 or 5 = 10 (down from 13); portfolio portion rated 4/5 (economic interest) = 17% (down from 32% at 9/30)
- Office REO sale in Austin, TX generated EAD gain: $1.3M; GAAP included $1.5M net loss on sale
- Book value per share: $30.01 at 12/31 vs $29.63 at 9/30 (+$0.38)
- Debt-to-equity leverage increased: 2.8x at 12/31 vs 2.7x at 9/30
Capital Funding
- Share repurchase: $10.0M used in Q4 to repurchase 493,000 shares at ~33% discount to book value (12/31)
- Buyback authorization: fully utilized in December 2025; since Nov 2020: 5.3M shares repurchased at average 49% discount to book value
- Liquidity at 12/31: $108.0M total = $84.0M unrestricted cash + $24.0M projected financing available on unlevered assets
Strategy & Ops
- Origination mix focus: Q4 origination was mostly multifamily; management purposely focused multifamily in Q4 and Q1 to enable new CLO execution
- Spreads range on Q4 multifamily execution: 2.50% to 3.25% (with 2.83% weighted average cited)
- In Q&A, average loan size cited: ~$40M to $50M
- Reinvestment opportunity for CLO execution: up to 40% of assets outside multifamily; reinvestment period stated as 30 months
- Exit planning for additional equity investments (Slide 11): under LOI to sell one smaller land deal; another asset is on the market with expected offers during the year and decisions based on offer levels
- 2026 repayments expectation: ~$500M repayments (mostly older vintage assets), driving 2023-and-older assets down to ~15% of portfolio
Market Outlook
- 2026 net portfolio growth guidance: $500M to $700M (management projection in Q&A)
- 2026 repayment estimate: about $500M (Q&A); repayments referenced earlier as ~$400M but management confirmed ~$500M projection
- Leverage view: management said it remains inside its comfort level of 'inside of four turns' total leverageable capital and does not expect to go above that
Risks & Headwinds
- CECL macro offset: CECL reserve decrease in Q4 was partially offset by a general decline in projected macroeconomic factors during the quarter
- Spread pressure: management stated spreads are coming down on multifamily 'across the board'
- Credit legacy overhang: $4.7M EAD loss attributable to a mezzanine loan inherited and reserved in 2022 (recognized through GAAP/EAD impact this quarter)
- Concentration/transition risk: heavy multifamily weighting in the near term (to support CLO) expected to 'start to fall off over the course of 2026'—implies mix shift execution risk
Sentiment: MIXED
Note: This summary was synthesized by AI from the ACR Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.