ACRES Commercial Realty (ACR) AI Stock Analysis

• Market Cap: $139.52M
• Dividend Yield: N/A
• Average Volume (3M): 38.31K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.31
• Revenue Growth: -18.37%
• EPS Growth: 18.80%
• Country: US
• Employees: 4
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 1.01
• Shares Outstanding: 7,285,680
• 10 Day Avg. Volume: 30,592
• 30 Day Avg. Volume: 38,309
• PEG Ratio: 0.02
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 6.39
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: -1.42
• Enterprise Value/Ebitda: 0.82
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $20.50 ▲(5.02% Upside)

The score is held back primarily by weakening cash flow and persistently high leverage flagged in the financial statements, alongside bearish technical signals (below key moving averages with negative MACD). These risks are partially offset by a more positive recent earnings update showing higher book value, improved distributable earnings, and reduced leverage, while valuation appears only moderate with limited dividend information.

Positive Factors

Cash Flow Management

Strong free cash flow growth indicates effective cash management, enhancing the company's ability to fund operations and investments.

Share Repurchase Program

The share repurchase program reflects management's confidence in the company's value and can improve EPS by reducing outstanding shares.

Net Income Growth

Increased net income suggests improved profitability and operational efficiency, supporting long-term financial health.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting flexibility and increasing vulnerability to interest rate changes.

Declining Revenue Growth

Declining revenue growth poses challenges to sustaining profitability and may impact future cash flow and investment capacity.

Net Decrease in Loan Portfolio

A net decrease in the loan portfolio can reduce interest income and limit growth opportunities in the core lending business.

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

Financial statements indicate elevated risk: leverage remains a key constraint (historically ~3.2x–4.4x debt-to-equity) and TTM operating/free cash flow turned slightly negative after multiple positive years. While net income has been positive in 2021–2024, the TTM revenue decline and negative gross profit suggest renewed pressure on core earnings quality.

Income Statement

Profitability has improved materially versus the large loss in 2020, with positive net income in every annual period from 2021–2024 and healthy net margins in 2023–2024. However, the latest TTM (Trailing-Twelve-Months) shows revenue down sharply (about -14.6%) and a negative gross profit, signaling renewed pressure on core earnings power despite still-positive net income. Overall, results look uneven with notable volatility across years.

Balance Sheet

Leverage is the key constraint: debt-to-equity remains high (roughly 3.2x–4.4x historically), which can amplify earnings swings in a mortgage REIT structure. Equity and assets have been relatively stable, and return on equity is modestly positive in recent years, but the capital structure leaves limited room for error if funding costs rise or asset values weaken. (TTM debt data appears inconsistent versus the stated leverage ratio, so the broader leverage trend is taken from annual reports.)

Cash Flow

Cash generation has weakened meaningfully in the most recent period: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow turned slightly negative after being solidly positive in 2021–2024. Earlier years show the business can produce strong cash flow (notably 2022–2023), but the sharp swing to negative cash flow raises near-term funding and sustainability questions, especially given the leveraged balance sheet.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	106.63M	83.49M	91.13M	62.88M	106.43M	-80.86M
Gross Profit	-69.62M	36.59M	52.22M	29.02M	100.25M	-86.96M
EBITDA	119.99M	126.15M	149.96M	88.44M	101.92M	-143.27M
Net Income	31.58M	29.27M	22.39M	10.62M	33.92M	-197.71M
Balance Sheet
Total Assets	1.69B	1.88B	2.20B	2.38B	2.28B	1.65B
Cash, Cash Equivalents and Short-Term Investments	40.92M	56.71M	83.45M	66.23M	35.50M	29.36M
Total Debt	0.00	1.41B	1.72B	1.91B	1.82B	1.31B
Total Liabilities	1.25B	1.43B	1.75B	1.94B	1.84B	1.32B
Stockholders Equity	432.93M	439.13M	435.80M	435.47M	448.19M	334.38M
Cash Flow
Free Cash Flow	-1.56M	19.38M	45.61M	31.96M	40.53M	31.80M
Operating Cash Flow	-1.46M	19.39M	45.61M	32.70M	40.59M	31.81M
Investing Cash Flow	328.80M	299.07M	161.31M	-232.55M	-390.50M	244.89M
Financing Cash Flow	-355.70M	-352.74M	-219.85M	20.74M	566.10M	-303.40M

ACRES Commercial Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 below the 20-day moving average (MA) of 20.05, below the 50-day MA of 21.36, and below the 200-day MA of 19.89, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 33.67 is Neutral, neither overbought nor oversold. The STOCH value of 28.86 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
SEVN	66 Neutral	$194.80M	8.42	5.72%	13.82%	-18.06%	-18.94%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CHMI	57 Neutral	$98.83M	140.10	4.55%	21.65%	22.14%	―
LFT	53 Neutral	$70.17M	13.86	4.14%	23.03%	-31.69%	-72.10%
AOMR	51 Neutral	$223.48M	12.55	6.67%	14.83%	65.86%	-74.61%
ACR	47 Neutral	$139.52M	20.33	6.58%	―	-18.37%	18.80%
GPMT	46 Neutral	$100.97M	-1.52	-9.11%	7.97%	-28.13%	62.49%

ACRES Commercial Realty Corporate Events

ACRES Commercial Realty Reports Q3 2025 Net Income

ACRES Commercial Realty Corp. reported a GAAP net income of $9.8 million, or $1.34 per share-diluted, for the third quarter ending September 30, 2025. The company successfully executed its strategy by utilizing deferred tax assets through the sale of a real estate investment, with proceeds reinvested into new loans. This move is expected to grow the portfolio and enhance shareholder value in the future.

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.