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ACRES Commercial Realty (ACR)
NYSE:ACR
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ACRES Commercial Realty
(NYSE:ACR)
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Rating:47Neutral
Price Target:
$20.50
▲(0.34% 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.
ACRES Commercial Realty (ACR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$148.63M
Dividend YieldN/A
Average Volume (3M)38.31K
Price to Earnings (P/E)20.9
Beta (1Y)0.31
Revenue Growth-18.37%
EPS Growth18.80%
CountryUS
Employees4
SectorN/A
Sector StrengthN/A
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)1.01
Shares Outstanding7,285,680
10 Day Avg. Volume30,592
30 Day Avg. Volume38,309
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.28
Price to Sales (P/S)1.48
P/FCF Ratio6.39
Enterprise Value/Market Cap9.07
Enterprise Value/Revenue12.64
Enterprise Value/Gross Profit-19.35
Enterprise Value/Ebitda11.23
Forecast
1Y Price Target
$24.50Price Target Upside19.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ACRES Commercial Realty Business Overview & Revenue Model
Company DescriptionACRES Commercial Realty (ACR) is a leading real estate investment and advisory firm specializing in the acquisition, development, and management of commercial properties. Focusing on sectors such as retail, office, industrial, and multifamily residential, ACR provides a comprehensive suite of services that includes property management, leasing, and investment strategy consulting. The company is committed to maximizing value for its investors and clients by leveraging market insights and a robust operational framework.
How the Company Makes MoneyACR 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 Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Positive
The earnings call highlighted several positive aspects, including an increase in net income and book value, a significant gain from a real estate sale, and a decrease in CECL reserves, all contributing to a strong financial position. However, the net decrease in the loan portfolio and the decline in net real estate operations are notable challenges. Overall, the highlights outweigh the lowlights, indicating a positive quarter.Q3-2025 Updates
Positive Updates
Net Income and Book Value Increase
GAAP net income allocable to common shares in Q3 was $9.8 million or $1.34 per share diluted. GAAP book value per share increased to $29.63 from $27.93 in the previous quarter.
Significant Real Estate Investment Gain
The company sold one of its real estate investments, resulting in a gross capital gain of $13.1 million.
Decrease in CECL Reserves
Current expected credit losses (CECL) reserves decreased by $4 million, driven by improvements in the modeled credit risk of the CRE loan portfolio and expected macroeconomic factors.
Stock Performance and Share Repurchase
The stock has increased 41.8% per year over the past five years. During the quarter, $2.9 million was used to repurchase 153,000 common shares at a 36% discount to book value.
Negative Updates
Net Decrease in Loan Portfolio
Funded new commitments of $106.4 million were offset by loan payoffs, sales, and paydowns of $153.2 million, resulting in a net decrease to the loan portfolio of $46.8 million.
Decline in Net Real Estate Operations
Net real estate operations declined by $2.7 million over the prior quarter due to exit fees on construction and PACE financing and other accelerated costs.
Company Guidance
During the ACRES Commercial Realty Corp. third quarter 2025 earnings call, management provided guidance on various financial metrics and strategic initiatives. The company reported a GAAP net income of $9.8 million or $1.34 per share diluted, including a $13.1 million gain from a real estate investment sale. The loan portfolio experienced a net decrease of $46.8 million due to new commitments of $106.4 million and payoffs, sales, and paydowns totaling $153.2 million. The company holds a $1.4 billion commercial real estate loan portfolio with a weighted average spread of 3.63% over 1-month term SOFR rates. The weighted average risk rating increased to 3.0 from 2.9, with 13 loans rated 4 or 5. The total allowance for credit losses stood at $26.4 million, representing 1.89% of the loan portfolio. Earnings available for distribution (EAD) rose to $1.01 per share from $0.04 per share in the previous quarter. The GAAP book value per share increased to $29.63 from $27.93. The company repurchased 153,000 shares at a 36% discount to book value, with $2.5 million remaining under the repurchase program. Available liquidity was $64 million, and the debt-to-equity leverage ratio decreased from 3x to 2.7x. Management anticipates more loan originations and potential future CLO issuance, with a strategic focus on redeploying capital into commercial real estate loans to optimize returns.ACRES Commercial Realty Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
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ACRES Commercial Realty Technical Analysis
Negative
20.43
Price Trends
21.78
Negative
21.17
Negative
19.87
Positive
Market Momentum
-0.51
Positive
36.61
Neutral
32.42
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 20.43 is below the 20-day moving average (MA) of 21.93, below the 50-day MA of 21.78, and above the 200-day MA of 19.87, indicating a neutral trend. The MACD of -0.51 indicates Positive momentum. The RSI at 36.61 is Neutral, neither overbought nor oversold. The STOCH value of 32.42 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
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
66 Neutral | $200.68M | 8.72 | 5.72% | 13.82% | -18.06% | -18.94% | |
57 Neutral | $95.16M | 135.42 | 4.55% | 21.65% | 22.14% | ― | |
53 Neutral | $74.88M | 14.79 | 4.14% | 23.03% | -31.69% | -72.10% | |
51 Neutral | $223.73M | 12.44 | 6.67% | 14.83% | 65.86% | -74.61% | |
47 Neutral | $148.63M | 20.91 | 6.58% | ― | -18.37% | 18.80% | |
46 Neutral | $105.24M | -1.51 | -9.11% | 7.97% | -28.13% | 62.49% |
* Sector Average
ACR
ACRES Commercial Realty
20.07
2.68
15.41%
SEVN
Seven Hills Realty Trust
8.93
-2.23
-19.98%
LFT
Lument Finance Trust
1.45
-0.91
-38.56%
CHMI
Cherry Hill Mortgage
2.60
0.19
7.88%
GPMT
Granite Point Mortgage
2.20
-0.38
-14.73%
AOMR
Angel Oak Mortgage
8.89
0.49
5.78%
ACRES Commercial Realty Corporate Events
Business Operations and StrategyFinancial Disclosures
ACRES Commercial Realty Reports Q3 2025 Net Income
Positive
Oct 29, 2025
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.
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.