ACRES Commercial Realty (ACR) AI Stock Analysis

• Market Cap: $134.06M
• Dividend Yield: N/A
• Average Volume (3M): 38.31K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.30
• Revenue Growth: -18.37%
• EPS Growth: 18.80%
• Country: US
• Employees: 4
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): -0.48
• Shares Outstanding: 7,131,101
• 10 Day Avg. Volume: 30,592
• 30 Day Avg. Volume: 38,309
• PEG Ratio: -0.07
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 38.64
• Enterprise Value/Market Cap: 12.25
• Enterprise Value/Revenue: 9.90
• Enterprise Value/Gross Profit: 10.30
• Enterprise Value/Ebitda: 14.41
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.93
• Revenue Forecast (FY): $81.84M

• Rating: 58 Neutral
• Price Target: $20.00 ▲(2.46% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is held back primarily by weaker cash-flow trends and high leverage in the financials, alongside a neutral-to-soft technical picture. These are partly offset by a low P/E valuation and a generally positive earnings-call tone emphasizing portfolio growth, improving credit quality, and shareholder-friendly actions.

Positive Factors

Strong Loan Origination & Portfolio Growth

Sustained origination and net portfolio expansion provide durable revenue and interest income runway. Scale in a $1.8B portfolio diversifies sponsor and property exposure, supports fee and spread income, and underpins management's $500M–$700M 2026 growth plan for multi-quarter earnings tailwinds.

Successful CRE Securitization and Funding Access

Executing a $1.0B securitization materially improves structural access to capital and cost of funds. The deal and CLO reinvestment flexibility create a repeatable funding channel to support disciplined loan growth and reduce reliance on short-term bank funding, strengthening long-term deployment capacity.

Improving Credit Quality & Asset-Management Track Record

Material quarter-over-quarter improvement in risk ratings and a track record of resolving legacy troubled loans with minimal realized losses signal stronger credit discipline. Lower impaired exposure and demonstrated workout capabilities reduce expected loss volatility and support steadier distributable earnings over time.

Negative Factors

High Leverage and Balance-Sheet Sensitivity

Elevated debt-to-equity typical for mortgage REITs increases sensitivity to rising funding costs and valuation swings. With leverage near mid/high single digits on ROE, the balance sheet offers limited margin for error—constraining capital flexibility and amplifying earnings sensitivity to spread compression or credit losses.

Weakened Cash Generation

A steep decline in operating and free cash flow reduces internal funding for dividends, buybacks, and portfolio investment. Lower cash conversion increases reliance on securitizations and external financing for growth and distributions, raising refinancing risk and reducing cushion against cyclical CRE stress.

Earnings Volatility and One-Off Charge-offs

Large one-off charge-offs and GAAP net-loss items create material swings in EAD and reported results, undermining predictability of distributable earnings. Persistent volatility complicates dividend planning and investor visibility, and could force reliance on balance-sheet actions to stabilize per-share metrics.

ACRES Commercial Realty Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

ACR generates revenue through multiple streams including property management fees, leasing commissions, and advisory fees for investment services. The company earns a significant portion of its income from managing a diversified portfolio of commercial properties, where it charges management fees based on property revenues. Additionally, ACR earns leasing commissions when securing tenants for its managed properties, which can be a substantial revenue source depending on lease terms and property occupancy rates. The company's advisory services also contribute to its earnings, particularly through consultancy contracts with investors seeking strategic insights into commercial real estate opportunities. Partnerships with financial institutions and other real estate firms further enhance ACR's revenue potential by facilitating access to capital and expanding its investment capabilities.

ACRES Commercial Realty Financial Statement Overview

Summary

Mixed fundamentals: revenue rebounded strongly and profitability is positive, but leverage is high (debt-to-equity ~3.78x) and operating/free cash flow fell sharply in the TTM period, reducing financial flexibility.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded sharply (+55.6%), and profitability remains positive (net margin ~12.8%). That said, earnings power looks less consistent than top-line growth implies: net income in TTM ($21.3M) is below 2024 ($29.3M) despite much higher revenue, and historical results include meaningful volatility (including a large loss in 2020). Overall: improving revenue trajectory, but profitability is choppy and the quality/consistency of margins looks uneven across periods.

Balance Sheet

Leverage is high, which is typical for mortgage REITs but still increases risk: TTM debt-to-equity is ~3.78x (also ~3.20x in 2024 and ~3.95x in 2023). Equity is positive (~$421M TTM) and returns on equity are modest but positive in recent periods (~5.0% TTM vs. ~6.7% in 2024), yet the balance sheet remains sensitive to funding costs and asset valuation swings given the debt load.

Cash Flow

Cash generation weakened materially in TTM: operating cash flow fell to ~$4.1M from ~$19.4M in 2024 and ~$45.6M in 2023, with free cash flow similarly down to ~$3.9M. While free cash flow still slightly exceeds net income in TTM (~1.07x), the steep decline in free cash flow growth signals reduced cash flexibility and potentially higher reliance on financing or portfolio activity to fund dividends/operations.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	165.90M	83.49M	91.13M	62.88M	106.43M
Gross Profit	159.34M	36.59M	52.22M	29.02M	100.25M
EBITDA	113.91M	126.15M	149.96M	88.44M	101.92M
Net Income	21.32M	29.27M	22.39M	10.62M	33.92M
Balance Sheet
Total Assets	2.16B	1.88B	2.20B	2.38B	2.28B
Cash, Cash Equivalents and Short-Term Investments	85.96M	56.71M	83.45M	66.23M	35.50M
Total Debt	1.59B	1.41B	1.72B	1.91B	1.82B
Total Liabilities	1.61B	1.43B	1.75B	1.94B	1.84B
Stockholders Equity	420.80M	439.13M	435.80M	435.47M	448.19M
Cash Flow
Free Cash Flow	3.94M	19.38M	45.61M	31.96M	40.53M
Operating Cash Flow	4.10M	19.39M	45.61M	32.70M	40.59M
Investing Cash Flow	-224.23M	299.07M	161.31M	-232.55M	-390.50M
Financing Cash Flow	248.48M	-352.74M	-219.85M	20.74M	566.10M

ACRES Commercial Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACR, the sentiment is Negative. The current price of 19.52 is above the 20-day moving average (MA) of 18.83, above the 50-day MA of 19.24, and below the 200-day MA of 19.95, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 50.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACR.

ACRES Commercial Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
SEVN	65 Neutral	$186.42M	7.07	5.46%	13.82%	-18.06%	-18.94%
AOMR	65 Neutral	$208.29M	4.63	17.10%	14.83%	65.86%	-74.61%
ACR	58 Neutral	$134.06M	16.18	4.99%	―	-18.37%	18.80%
CHMI	55 Neutral	$99.56M	3.02	2.95%	21.65%	22.14%	―
LFT	53 Neutral	$67.03M	14.34	4.21%	23.03%	-31.69%	-72.10%
GPMT	45 Neutral	$73.72M	-2.79	-7.12%	7.97%	-28.13%	62.49%

ACRES Commercial Realty Corporate Events

ACRES Commercial Realty Reports Q4 Results, Highlights CLO

ACRES Commercial Realty Corp., a real estate investment trust specializing in commercial real estate mortgage loans and equity investments across multifamily, student housing, hospitality, industrial and office properties, reported its financial results for the fourth quarter and full year ended December 31, 2025. The company, externally managed by ACRES Capital, focuses on middle market lending to sponsors in leading U.S. markets.

For the quarter ended December 31, 2025, ACRES posted a GAAP net loss allocable to common shares of $3.0 million, or $0.43 per diluted share, but highlighted strong origination activity with $571 million of new high-quality loans added to the portfolio. Management noted that this momentum extended into early 2026, culminating in the closing of a $1 billion commercial real estate CLO in February, and reported that only a small number of watchlist assets remain, each with plans aimed at positive resolutions.

The company indicated that it intends to continue growing its portfolio and earnings by providing loans to top-tier sponsors in key U.S. markets, underscoring a strategy of disciplined growth following an active quarter and year. ACRES is also engaging investors through a conference call on March 5, 2026, to further discuss the fourth-quarter 2025 results and operational progress, reflecting ongoing efforts to communicate its outlook and performance to the market.

The most recent analyst rating on (ACR) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on ACRES Commercial Realty stock, see the ACR Stock Forecast page.