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ACRES Commercial Realty
(NYSE:ACR)
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Rating:44Neutral
Price Target:
$14.50
▼(-17.85% Downside)
Action:Reiterated
Date:08/07/26
ACR scores low mainly due to weakening profitability/cash generation alongside elevated leverage, and a clearly bearish technical setup with the price below all major moving averages and negative momentum indicators. The latest earnings call adds some offsetting support via reiterated growth guidance, improved net interest income, and lower leverage, but near-term losses and book value decline keep the overall profile pressured.
Positive Factors
Management Internalization
The near-unanimous approval and planned employee ownership materially align management and shareholder incentives, reducing the agency costs of an external manager. Over months this can lower ongoing manager fees, improve decision-making incentives and strengthen governance, supporting execution and cost control.
Negative Factors
High and Rising Leverage
A debt-to-equity ratio near 4.4x materially constrains balance-sheet flexibility and amplifies sensitivity to interest rates and funding shocks. Over the medium term this elevates covenant and refinancing risk, limits capacity for asset growth, and makes earnings more leveraged to funding cost changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Management Internalization
The near-unanimous approval and planned employee ownership materially align management and shareholder incentives, reducing the agency costs of an external manager. Over months this can lower ongoing manager fees, improve decision-making incentives and strengthen governance, supporting execution and cost control.
Read all positive factors
ACRES Commercial Realty (ACR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$124.79M
Dividend YieldN/A
Average Volume (3M)38.31K
Price to Earnings (P/E)―
Beta (1Y)0.25
Revenue Growth-2.62%
EPS Growth-7470.75%
CountryUS
Employees4
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)-1.08
Shares Outstanding7,131,101
10 Day Avg. Volume30,592
30 Day Avg. Volume38,309
Financial Highlights & Ratios
PEG Ratio-6.55
Price to Book (P/B)0.36
Price to Sales (P/S)0.92
P/FCF Ratio38.64
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.66
Revenue Forecast (FY)$81.02M
ACRES Commercial Realty Business Overview & Revenue Model
Company Description
ACRES Commercial Realty Corp. (ACR) functions as a real estate investment trust (REIT) based in Uniondale, New York, having been established in 2005. The firm's primary objective is to generate, own, and administer various debt instruments related...
How the Company Makes Money
ACR primarily makes money through net interest income generated from its commercial real estate loan portfolio: it earns interest and fees on loans it originates or acquires and pays interest on its own financing, with the spread (asset yield minu...
ACRES Commercial Realty Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call mixed strategic and operational positives with near-term financial headwinds. Positives include near-unanimous shareholder approval of the internalization transaction, expected management alignment with employees owning 40%+ pro forma, a strong pipeline with a stated $500 million net growth target for 2026, improved net interest income, stable portfolio risk metrics, available liquidity of $83M, and reduced leverage. Offsetting these are meaningful one-time internalization-related charges and accelerated compensation that drove a GAAP net loss of $12.5M and an EAD loss of $0.74 per share, a decline in book value per share of ~10.7%, an increase in CECL reserves, and a net $74.9M reduction in the loan book. Management characterized many negatives as transaction-related and indicated lower transaction expenses expected in Q3, but near-term financial results were materially impacted by the internalization costs.Positive Updates
Strong Shareholder Approval for Internalization
Approximately 99% of votes cast approved the share issuance/internalization transaction; management anticipates closing in short order and expects pro forma Acres employees to own 40%+ of common stock, aligning management and shareholders.
Negative Updates
GAAP Net Loss and Per-Share Impact
GAAP net loss allocable to common shares was $12.5 million, or $1.87 per share for Q2. The quarter included $5.1 million of internalization transaction costs and $4.0 million of incremental compensation expense related to accelerated restricted stock vesting.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Shareholder Approval for Internalization
Approximately 99% of votes cast approved the share issuance/internalization transaction; management anticipates closing in short order and expects pro forma Acres employees to own 40%+ of common stock, aligning management and shareholders.
Read all positive updates
Company Guidance
Management reiterated 2026 guidance to achieve $500 million of net REIT growth and said the lending pipeline is “stronger than ever,” while noting the internalization vote passed with ~99% support and is expected to close in short order (pro forma employees to own 40%+ of common). During Q2 the loan book saw $92.7M of payoffs/paydowns and $17.8M of funded commitments for a $74.9M net decrease; weighted average risk rating was 2.6 (up from 2.5), with 10 loans rated 4 or 5 representing 14% of CRE exposure. Q2 GAAP net loss allocable to common was $12.5M ($1.87/sh), which included ~$5–5.5M of internalization transaction costs, $4.0M of incremental compensation from accelerated vesting, $984K of accelerated deferred debt costs, a $1.7M increase in CECL reserves ($0.25/sh), and $10.5M of net interest income (up $1.3M QoQ); EAD was a loss of $0.74/sh (vs a $0.02/sh gain in Q1) but would have been $0.14/sh excluding the one‑offs. Other key metrics: allowance for credit losses $21.1M (0.99% of $2.1B loan portfolio at par), GAAP book value $26.76/sh (down from $29.98), available liquidity $83M ($41M unrestricted cash + $42M projected financing), leverage 3.2x (down from 3.4x), gross NOLs $94.1M (~$6.30/sh), and two REO properties remaining; management expects additional one‑time transaction costs into Q3 but at lower levels than Q2.ACRES Commercial Realty Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
42
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 186.77M | 165.90M | 83.49M | 91.13M | 62.88M | 106.43M |
| Gross Profit | 134.83M | 159.34M | 36.59M | 52.22M | 29.02M | 100.25M |
| EBITDA | 59.54M | 113.91M | 126.15M | 149.96M | 88.44M | 101.92M |
| Net Income | 13.98M | 21.32M | 29.27M | 22.39M | 10.62M | 33.92M |
Balance Sheet | ||||||
| Total Assets | 2.41B | 2.16B | 1.88B | 2.20B | 2.38B | 2.28B |
| Cash, Cash Equivalents and Short-Term Investments | 41.95M | 85.96M | 56.71M | 83.45M | 66.23M | 35.50M |
| Total Debt | 1.83B | 1.59B | 1.41B | 1.72B | 1.91B | 1.82B |
| Total Liabilities | 1.86B | 1.61B | 1.43B | 1.75B | 1.94B | 1.84B |
| Stockholders Equity | 413.32M | 420.80M | 439.13M | 435.80M | 435.47M | 448.19M |
Cash Flow | ||||||
| Free Cash Flow | 4.14M | 3.94M | 19.38M | 45.61M | 31.96M | 40.53M |
| Operating Cash Flow | 4.20M | 4.10M | 19.39M | 45.61M | 32.70M | 40.59M |
| Investing Cash Flow | -907.11M | -224.23M | 299.07M | 161.31M | -232.55M | -390.50M |
| Financing Cash Flow | 863.87M | 248.48M | -352.74M | -219.85M | 20.74M | 566.10M |
ACRES Commercial Realty Technical Analysis
Negative
17.65
Price Trends
17.76
Negative
18.90
Negative
19.67
Negative
Market Momentum
-0.67
Positive
24.33
Positive
6.92
Positive
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 17.65 is above the 20-day moving average (MA) of 17.16, below the 50-day MA of 17.76, and below the 200-day MA of 19.67, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 24.33 is Positive, neither overbought nor oversold. The STOCH value of 6.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACR.
ACRES Commercial Realty Risk Analysis
ACRES Commercial Realty disclosed 69 risk factors in its most recent earnings report. ACRES Commercial Realty reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ACRES Commercial Realty Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $170.83M | 11.27 | 3.78% | 14.13% | -2.38% | -35.43% | |
61 Neutral | $220.49M | 13.00 | 7.31% | 14.55% | 31.73% | -55.72% | |
58 Neutral | $83.03M | 20.16 | 6.09% | 17.70% | -7.99% | ― | |
47 Neutral | $34.60M | -5.15 | -0.90% | 20.03% | -28.61% | -164.74% | |
45 Neutral | $69.00M | -1.33 | -6.46% | 15.04% | -23.52% | 64.81% | |
44 Neutral | $124.79M | -16.20 | 6.11% | ― | -2.62% | -7470.75% |
* Real Estate Sector Average
ACR
ACRES Commercial Realty
14.60
-5.09
-25.85%
SEVN
Seven Hills Realty Trust
7.72
-1.33
-14.65%
LFT
Lument Finance Trust
0.68
-1.33
-66.34%
CHMI
Cherry Hill Mortgage
2.39
0.01
0.59%
GPMT
Granite Point Mortgage
1.25
-1.32
-51.36%
AOMR
Angel Oak Mortgage
8.88
1.12
14.36%
ACRES Commercial Realty Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
ACRES Commercial Realty Completes Merger and New Debt Financing
Positive
Aug 6, 2026
On August 6, 2026, ACRES Commercial Realty amended and assumed a term loan facility originally closed in July 2025, bringing total funded advances to $185 million at a fixed rate of 8.749% and extending maturities and covenants across its real est...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
ACRES Commercial Realty Moves to Internal Management Structure
Positive
Aug 4, 2026
ACRES Commercial Realty Corp. plans to complete its previously announced merger and internalization transactions on August 6, 2026, under which ACRES Capital Corp. will merge into a company subsidiary and the external manager, ACRES Capital LLC, w...
Business Operations and StrategyFinancial Disclosures
ACRES Commercial Realty Reports Quarterly Net Loss, Internalizes Management
Negative
Jul 29, 2026
On July 29, 2026, ACRES Commercial Realty Corp. reported a GAAP net loss allocable to common shares of $12.5 million, or $1.87 per diluted share, for the quarter ended June 30, 2026, underscoring ongoing earnings pressure at the commercial real es...
Business Operations and StrategyPrivate Placements and Financing
ACRES Commercial Realty Extends JPMorgan Funding Facility
Positive
Jul 24, 2026
On July 21, 2026, RCC Real Estate SPE 8, an indirect wholly owned subsidiary of ACRES Commercial Realty, amended its master repurchase agreement with JPMorgan Chase Bank to extend the facility’s maturity date from July 21, 2026 to July 21, 2...
Executive/Board ChangesM&A TransactionsShareholder Meetings
ACRES Commercial Realty Shareholders Approve Equity Plan, Merger
Positive
Jun 25, 2026
On June 22, 2026, ACRES Commercial Realty stockholders approved the company’s 2026 Omnibus Equity Incentive Plan, reinforcing its ability to grant equity-based awards to directors, executives and employees and potentially aligning management...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.