ACRES Commercial Realty (ACR) AI Stock Analysis

• Market Cap: $160.33M
• Dividend Yield: N/A
• Average Volume (3M): 20.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -16.01%
• EPS Growth: -98.23%
• Country: US
• Employees: 4
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 1.01
• Shares Outstanding: 7,426,314
• 10 Day Avg. Volume: 23,489
• 30 Day Avg. Volume: 20,032
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $24.50
• Price Target Upside: 12.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $21.00 ▼(-3.45% Downside)

ACRES Commercial Realty's overall stock score reflects a mixed financial performance with high leverage and declining revenue growth. Technical indicators show short-term bullish momentum, but valuation metrics are weak due to a negative P/E ratio and no dividend yield. The recent earnings call provided positive insights, but challenges remain in the loan portfolio and real estate operations.

Positive Factors

Revenue Growth

The consistent revenue growth over several years indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Balance Sheet Health

A zero-debt position strengthens the balance sheet, providing greater financial flexibility and reducing risk, which is crucial for sustainable growth.

Loan Portfolio Expansion

Expanding the loan portfolio supports revenue growth and market presence, indicating effective capital deployment and strategic expansion in the commercial real estate sector.

Negative Factors

GAAP Net Loss

A GAAP net loss reflects challenges in profitability, which could impact investor confidence and necessitate cost management improvements for future profitability.

Book Value Decline

A decline in book value per share suggests potential issues in asset valuation or profitability, which could affect shareholder equity and long-term value creation.

Increased Risky Loans

An increase in higher-risk loans raises concerns about credit quality and potential defaults, which could impact financial stability and future earnings.

ACRES Commercial Realty Business Overview & Revenue Model

Company Description

ACRES 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 Money

ACR 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 Financial Statement Overview

Summary

ACRES Commercial Realty shows a mixed financial performance. Positive net profit margins and strong cash flow management are offset by high leverage and declining revenue growth. The balance sheet reflects significant debt levels, typical for the industry, but requires careful management to mitigate financial risks.

Income Statement

ACRES Commercial Realty's income statement shows a mixed performance. The company has experienced a significant decline in revenue growth, with a negative growth rate of -18.83% in the TTM period. Gross profit margin has also decreased over time, indicating challenges in maintaining profitability. However, the net profit margin remains positive at 20.15%, suggesting some level of cost control. The EBIT and EBITDA margins are strong, but the volatility in revenue growth and profitability poses risks.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.19, indicating significant leverage, which is typical for the REIT industry but still poses financial risk. The return on equity is modest at 5.01%, reflecting moderate profitability relative to shareholder equity. The equity ratio of 23.39% suggests a relatively low proportion of equity financing, which could impact financial stability.

Cash Flow

Cash flow analysis shows a positive trend with a 42.33% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is low at 0.11, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio is strong at 0.99, suggesting efficient cash management. Overall, cash flow performance is relatively stable, but there are areas for improvement in operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	124.89M	83.49M	91.13M	62.88M	106.43M	-80.86M
Gross Profit	-48.42M	36.59M	52.22M	29.02M	100.25M	-86.96M
EBITDA	115.68M	126.15M	149.96M	88.44M	101.92M	-143.27M
Net Income	21.68M	29.27M	22.39M	10.62M	33.92M	-197.71M
Balance Sheet
Total Assets	1.82B	1.88B	2.20B	2.38B	2.28B	1.65B
Cash, Cash Equivalents and Short-Term Investments	44.85M	56.71M	83.45M	66.23M	35.50M	31.43M
Total Debt	1.35B	1.41B	1.72B	1.91B	1.82B	1.31B
Total Liabilities	1.38B	1.43B	1.75B	1.94B	1.84B	1.32B
Stockholders Equity	425.28M	439.13M	435.80M	435.47M	448.19M	334.38M
Cash Flow
Free Cash Flow	16.27M	19.38M	45.61M	31.96M	40.53M	31.80M
Operating Cash Flow	16.38M	19.39M	45.61M	32.70M	40.59M	31.81M
Investing Cash Flow	251.03M	299.07M	161.31M	-232.55M	-390.50M	244.89M
Financing Cash Flow	-314.15M	-352.74M	-219.85M	20.74M	566.10M	-303.40M

ACRES Commercial Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 21.75 is above the 20-day moving average (MA) of 20.17, above the 50-day MA of 20.63, and above the 200-day MA of 19.49, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 68.63 is Neutral, neither overbought nor oversold. The STOCH value of 94.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$141.62M	9.06	5.72%	14.13%	-18.06%	-18.94%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
LFT	55 Neutral	$80.08M	8.43	6.01%	22.88%	-24.12%	-47.91%
AOMR	55 Neutral	$217.45M	5.92	14.91%	14.13%	75.08%	-21.03%
ACR	54 Neutral	$160.33M	―	5.05%	―	-16.01%	-98.23%
CHMI	49 Neutral	$84.71M	―	-2.56%	23.81%	-2.02%	-20.61%
GPMT	49 Neutral	$124.17M	-1.23	-9.11%	7.52%	-28.13%	62.49%

ACRES Commercial Realty Corporate Events

ACRES Commercial Realty Corp. Reports Strong Q3 Earnings

ACRES Commercial Realty Corp. is a real estate investment trust specializing in commercial real estate mortgage loans and equity investments through direct ownership and joint ventures, managed externally by ACRES Capital, LLC. In its third-quarter 2025 earnings report, ACRES Commercial Realty Corp. announced a GAAP net income of $9.8 million, equating to $1.34 per diluted share. The company highlighted the successful execution of its strategy to utilize deferred tax assets through the sale of a real estate investment, with the proceeds reinvested into new loans. This strategic move is part of ACR’s ongoing efforts to grow its portfolio by investing in high-quality loan opportunities. Looking ahead, ACRES Commercial Realty Corp. anticipates continued growth in its portfolio, focusing on enhancing shareholder value through strategic investments in the fourth quarter and beyond.

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.

ACRES Commercial Realty Secures $73 Million Loan Guarantees

On September 12, 2025, ACRES Commercial Realty Corp. entered into multiple guaranties related to a $62 million construction loan and an $11 million bridge loan, ensuring the completion and financial obligations of a construction project. These agreements, including a Guaranty of Completion and an Environmental Indemnity Agreement, position the company as a primary obligor, impacting its operational commitments and stakeholder interests.

The most recent analyst rating on (ACR) stock is a Buy with a $23.50 price target. To see the full list of analyst forecasts on ACRES Commercial Realty stock, see the ACR Stock Forecast page.

ACRES Commercial Realty Corp. Earnings Call: Balancing Progress and Challenges

The recent earnings call for ACRES Commercial Realty Corp. presented a balanced sentiment, reflecting both positive developments and ongoing challenges. The company reported new loan commitments, increased net interest income, and improved real estate operations, which were promising signs of progress. However, these were tempered by a net loss for the quarter, an increase in higher-risk loans, a decrease in book value, and a slight rise in the leverage ratio. Overall, the sentiment was mixed, acknowledging both advancements and hurdles faced by the company.

ACRES Commercial Realty Reports Q2 2025 Financials

ACRES Commercial Realty Corp. is a real estate investment trust focused on originating, holding, and managing commercial real estate mortgage loans and equity investments through direct ownership and joint ventures.