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ACRES Commercial Realty (ACR)
NYSE:ACR
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ACRES Commercial Realty (ACR) AI Stock Analysis

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ACR

ACRES Commercial Realty

(NYSE:ACR)

Rating:59Neutral
Price Target:
$22.00
▲(4.51% Upside)
The overall stock score for ACRES Commercial Realty is 58.9, primarily influenced by its strong revenue growth and improved profitability, despite historical volatility in equity and cash flow management. Technical indicators suggest a positive trend, but the stock appears overbought, posing a risk of a pullback. The valuation is weak due to a negative P/E ratio and lack of dividend yield, indicating current unprofitability. While the earnings call and corporate events highlight some positive strategic moves, the financial challenges remain significant.
Positive Factors
Analyst Rating
The analyst reiterates a Market Outperform rating and increases the price target for Acres Commercial Realty Corp.
Financial Performance
The book value of ACRES Commercial Realty Corp. increased to $28.87 per share, showing growth in the company's value.
Shareholder Value
The company repurchased 155K shares of its common stock, which increased book value per share, indicating a strategy to enhance shareholder value.
Negative Factors
Loan Origination
The loan portfolio decreased in size and no new loans were originated in the third quarter.
Loan Portfolio
The middle-market CRE loan portfolio decreased by 5.9%, which might be a concern for future growth prospects.

ACRES Commercial Realty (ACR) vs. SPDR S&P 500 ETF (SPY)

ACRES Commercial Realty Business Overview & Revenue Model

Company DescriptionACRES Commercial Realty (ACR) is a dynamic real estate firm specializing in the acquisition, development, and management of commercial properties. Operating primarily in the retail, office, and industrial sectors, ACR provides a comprehensive suite of services including property leasing, investment advisory, and asset management. The company is committed to creating value for its clients through strategic property investment and innovative real estate solutions.
How the Company Makes MoneyACR generates revenue through multiple streams including leasing commissions from tenant agreements, property management fees, and consulting services for real estate investments. The company also profits from the appreciation of its real estate assets and the sale of properties in its portfolio. Strategic partnerships with financial institutions and investment funds further enhance its revenue potential, allowing ACR to leverage external capital for larger projects and increase its overall profitability.

ACRES Commercial Realty Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed outlook. While the company managed to increase its loan portfolio and improve net interest income, it faced a GAAP net loss and a decline in book value. The decrease in credit loss reserves and strategic share repurchases were positive, but the increase in the number of risky loans remains a concern.
Q2-2025 Updates
Positive Updates
Increase in Loan Portfolio
The company closed a new commitment of $72 million, resulting in a net increase to the loan portfolio of $60.5 million.
Improved Net Interest Income
Net interest income increased by $3 million over the prior quarter due to lower financing costs and non-recurrence of prior charges.
Decrease in Credit Loss Reserves
There was a decrease in current expected credit losses reserves by $780,000 compared to the previous quarter.
Share Repurchase at Discount
The company repurchased 272,000 common shares at a 33% discount to book value, spending $5.1 million.
Negative Updates
GAAP Net Loss
The company reported a GAAP net loss allocable to common shares of $732,000 or a loss of $0.10 per share diluted.
Book Value Decline
GAAP book value per share decreased from $28.50 on March 31 to $27.93 on June 30.
Increased Number of Risky Loans
The number of loans rated 4 or 5 increased from 11 to 13, indicating a rise in higher-risk loans.
Company Guidance
During the second quarter of 2025, ACRES Commercial Realty Corp. provided guidance on various financial metrics. The company closed a new loan commitment of $72 million, with an unfunded commitment of $1.2 million, and funded existing loan commitments amounting to $7.3 million, resulting in a net increase of $60.5 million to their $1.4 billion commercial real estate loan portfolio. The weighted average spread on floating rate loans was noted at 3.65% over 1-month term SOFR rates. The quarter concluded with a GAAP net loss of $732,000, or $0.10 per share, despite net interest income rising by $3 million to $8.6 million, aided by lower financing costs and the absence of prior quarter's accelerated deferred financing charges. The company's book value per share decreased to $27.93 from $28.50, while its debt-to-equity leverage ratio increased slightly to 3x. Additionally, ACRES repurchased 272,000 common shares for $5.1 million, and maintained available liquidity of $65 million, including $43 million in unrestricted cash. The company aims for a portfolio growth of $300 million to $500 million by year-end, and is considering executing another CLO in the near future.

ACRES Commercial Realty Financial Statement Overview

Summary
ACRES Commercial Realty has shown strong revenue growth and improved net profit margins, reflecting effective management. However, there is variability in cash flow and historical equity fluctuations, indicating a need for careful financial planning.
Income Statement
75
Positive
ACRES Commercial Realty has demonstrated consistent revenue growth over the years, with a noticeable increase from $19.5 million in 2020 to $83.5 million in 2024. The gross profit margin has remained stable, showcasing efficient operational management. However, there is fluctuation in EBIT and EBITDA margins, with significant negative EBIT in 2020 impacting historical averages. The net profit margin has improved in recent years, indicating better cost control and profitability.
Balance Sheet
68
Positive
The company's debt-to-equity ratio has significantly improved due to the reduction of total debt to zero in 2024, enhancing financial stability. The equity ratio remains strong, reflecting a solid capital structure. However, the fluctuations in stockholders’ equity over the years suggest some instability in value retention. The return on equity (ROE) has improved with positive net income in recent periods, highlighting effective use of equity to generate profits.
Cash Flow
62
Positive
ACRES Commercial Realty's operating cash flow has shown variability, though it remains positive, which is crucial for maintaining operational liquidity. The free cash flow experienced volatility, which can impact future growth investments. The recent decrease in operating cash flow to net income ratio suggests growing efficiency challenges. The company has managed significant financing activities, indicating effective capital management but also potential future cash flow constraints.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue127.38M83.49M91.13M70.00M44.86M19.49M
Gross Profit78.43M36.59M52.22M36.15M38.68M19.19M
EBITDA81.06M126.15M149.96M88.44M0.00-136.79M
Net Income21.59M29.27M22.39M10.62M33.92M-197.71M
Balance Sheet
Total Assets1.82B1.88B2.20B2.38B2.28B1.65B
Cash, Cash Equivalents and Short-Term Investments44.85M56.71M83.45M67.78M35.50M31.43M
Total Debt1.35B1.41B1.72B1.91B1.82B1.31B
Total Liabilities1.38B1.43B1.75B1.94B1.84B1.32B
Stockholders Equity425.28M439.13M435.80M435.47M448.19M334.38M
Cash Flow
Free Cash Flow16.27M19.38M45.61M31.96M40.53M31.80M
Operating Cash Flow16.38M19.39M45.61M32.70M40.59M31.81M
Investing Cash Flow251.03M299.07M161.31M-232.55M-390.50M244.89M
Financing Cash Flow-314.15M-352.74M-219.85M20.74M566.10M-303.40M

ACRES Commercial Realty Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.05
Price Trends
50DMA
19.08
Positive
100DMA
18.64
Positive
200DMA
18.64
Positive
Market Momentum
MACD
0.55
Negative
RSI
71.05
Negative
STOCH
79.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACR, the sentiment is Positive. The current price of 21.05 is above the 20-day moving average (MA) of 20.33, above the 50-day MA of 19.08, and above the 200-day MA of 18.64, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 71.05 is Negative, neither overbought nor oversold. The STOCH value of 79.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACR.

ACRES Commercial Realty Risk Analysis

ACRES Commercial Realty disclosed 71 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

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$161.69M10.315.71%12.48%-16.74%-32.89%
60
Neutral
$117.24M12.396.01%17.18%-24.12%-47.91%
59
Neutral
$155.95M66.035.05%-16.01%-98.23%
54
Neutral
$103.09M43.78-2.56%20.76%-2.02%-20.61%
53
Neutral
$1.23B2.98-5.63%5.85%-6.20%-79.02%
49
Neutral
$136.97M-14.12%6.83%-29.55%42.09%
48
Neutral
$257.98M-3.30%16.33%-27.60%62.75%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ACR
ACRES Commercial Realty
21.05
5.58
36.07%
ACRE
Ares Commercial
4.90
-1.13
-18.74%
SEVN
Seven Hills Realty Trust
10.66
-1.70
-13.75%
LFT
Lument Finance Trust
2.27
0.16
7.58%
CHMI
Cherry Hill Mortgage
2.89
-0.05
-1.70%
GPMT
Granite Point Mortgage
2.93
0.49
20.08%

ACRES Commercial Realty Corporate Events

Business Operations and StrategyFinancial Disclosures
ACRES Commercial Realty Reports Q2 2025 Net Loss
Negative
Jul 30, 2025

On July 30, 2025, ACRES Commercial Realty Corp. reported a GAAP net loss of $732,000 for the second quarter of 2025, equating to a loss of $0.10 per share-diluted. Despite the loss, the company is actively developing a pipeline of new loan opportunities and plans to grow its portfolio by investing in high-quality properties nationwide during the second half of the year. This strategic focus aims to enhance asset management and ensure successful payoffs, which could potentially improve the company’s financial performance and market positioning.

Executive/Board ChangesShareholder Meetings
ACRES Commercial Realty Holds 2025 Annual Stockholders Meeting
Neutral
Jun 5, 2025

On June 5, 2025, ACRES Commercial Realty Corp. held its 2025 Annual Meeting of Stockholders where nine directors were elected to serve until the next annual meeting in 2026. Additionally, stockholders approved the compensation of the company’s named executive officers and ratified Ernst & Young LLP as the independent registered public accounting firm for the year ending December 31, 2025.

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.Date of analysis: Aug 27, 2025