ACRES Commercial Realty (ACR) AI Stock Analysis

• Market Cap: $133.98M
• Dividend Yield: N/A
• Average Volume (3M): 32.22K
• Price to Earnings (P/E): 62.6
• Beta (1Y): 0.40
• Revenue Growth: -13.68%
• EPS Growth: -53.53%
• Country: US
• Employees: 4
• Sector: Real Estate
• Sector Strength: 60
• Industry: REIT - Mortgage
• EPS (TTM): -0.86
• Shares Outstanding: 7,394,194
• 10 Day Avg. Volume: 31,430
• 30 Day Avg. Volume: 32,219
• PEG Ratio: 0.36
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.03
• Enterprise Value/Market Cap: 11.08
• Enterprise Value/Revenue: 2.76
• Enterprise Value/Gross Profit: 9.71
• Enterprise Value/Ebitda: 8.99
• 1Y Price Target: $22.00
• Price Target Upside: 21.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: $19.00 ▲(4.86%Upside)

ACRES Commercial Realty's overall score reflects strong revenue growth and operational improvements, but is tempered by valuation concerns and technical weakness. The recent earnings call highlights potential growth, though current financial challenges persist. The absence of a dividend yield and high P/E ratio further impact its attractiveness.

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 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

ACRES Commercial Realty generates revenue primarily through interest income from its portfolio of commercial real estate loans. The company originates and acquires senior and mezzanine loans, preferred equity, and other debt-like investments in commercial properties. By charging interest on these loans, ACR earns a steady stream of income. Additionally, the company may benefit from gains on sales of its investments and other real estate-related income, such as fees associated with loan origination. The effectiveness of ACR's revenue model is influenced by the company's ability to manage credit risk, interest rate exposure, and market conditions in the commercial real estate sector.

ACRES Commercial Realty Financial Statement Overview

Summary

ACRES Commercial Realty displays strong revenue growth and improved net profit margins, indicating effective management and profitability improvements. The balance sheet shows a strengthened financial position with zero debt, though there are historical equity fluctuations. Cash flow management is variable, requiring careful future planning to sustain growth.

Income Statement

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

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

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
83.49M	80.23M	70.00M	44.86M	19.49M
	Gross Profit
36.59M	41.32M	36.15M	38.68M	19.19M
	EBIT
11.60M	20.67M	93.09M	33.92M	-197.71M
	EBITDA
144.72M	149.96M	88.44M	0.00	-136.79M
	Net Income Common Stockholders
28.70M	22.39M	10.62M	33.92M	-197.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
56.71M	83.45M	67.78M	35.50M	31.43M
	Total Assets
1.88B	2.20B	2.38B	2.28B	1.65B
	Total Debt
1.41B	1.72B	1.91B	1.82B	1.31B
	Net Debt
1.35B	1.64B	1.84B	1.78B	1.28B
	Total Liabilities
1.43B	1.75B	1.94B	1.84B	1.32B
	Stockholders Equity
439.13M	435.80M	435.47M	448.19M	334.38M
Cash Flow		Free Cash Flow
19.38M	45.61M	31.96M	40.53M	31.80M
	Operating Cash Flow
19.39M	45.61M	32.70M	40.59M	31.81M
	Investing Cash Flow
299.07M	161.31M	-232.55M	-390.50M	244.89M
	Financing Cash Flow
-352.74M	-219.85M	20.74M	566.10M	-303.40M

ACRES Commercial Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 18.12 is below the 20-day moving average (MA) of 18.55, below the 50-day MA of 18.68, and above the 200-day MA of 17.65, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 43.85 is Neutral, neither overbought nor oversold. The STOCH value of 20.08 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	$176.33M	10.29	6.27%	11.83%	-11.97%	-27.40%
Sector *	61 Neutral	$2.83B	10.92	0.41%	8438.90%	5.75%	-21.03%
ACR	60 Neutral	$133.98M	62.61	5.47%	―	-13.68%	-53.53%
LFT	56 Neutral	$133.95M	12.86	6.38%	12.50%	-10.98%	-35.75%
CHMI	50 Neutral	$99.11M	43.78	-2.83%	20.13%	0.33%	-37.48%
GPMT	49 Neutral	$126.34M	―	-20.41%	7.66%	-26.87%	-189.15%
ACRE	48 Neutral	$263.48M	―	-2.33%	18.79%	-52.08%	10.36%

ACRES Commercial Realty Corporate Events

ACRES Commercial Realty Holds 2025 Annual Stockholders Meeting

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.

The most recent analyst rating on (ACR) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on ACRES Commercial Realty stock, see the ACR Stock Forecast page.

ACRES Reports Q1 2025 Net Loss, Secures New Financing

On April 30, 2025, ACRES Commercial Realty Corp. reported a GAAP net loss of $5.9 million for the first quarter of 2025. Despite the loss, the company remains optimistic about its ability to create shareholder value, having secured a new financing facility to manage liabilities and actively sourcing high-quality loans to enhance its portfolio.