ACRES Commercial Realty (ACR)
NYSE:ACR
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ACRES Commercial Realty
(NYSE:ACR)
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Rating:58Neutral
Price Target:
$22.00
▲(12.70% Upside)
Action:ReiteratedDate:05/01/26
The score is driven primarily by mixed financial quality (high leverage and sharply weaker operating/free cash flow despite a revenue rebound). Technicals are supportive but overextended, while valuation is a relative positive with a low P/E. The earnings call adds moderate support due to improving credit metrics and expected securitization run-rate benefits, tempered by near-term losses, higher leverage, and tight liquidity.
Positive Factors
Revenue Growth Momentum
A sustained TTM revenue rebound of +55.6% indicates durable origination and deployment capability in middle‑market CRE lending. Persistent top‑line expansion supports scale, fee conversion and diversification of income streams, strengthening long‑term earnings potential and growth optionality.
Negative Factors
Elevated Leverage
A debt/equity ratio near 3.8x is characteristic of mortgage REITs but materially increases sensitivity to funding cost shifts and asset valuation swings. High structural leverage constrains financial flexibility, magnifies downside in credit stress and limits room for discretionary capital returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Momentum
A sustained TTM revenue rebound of +55.6% indicates durable origination and deployment capability in middle‑market CRE lending. Persistent top‑line expansion supports scale, fee conversion and diversification of income streams, strengthening long‑term earnings potential and growth optionality.
Read all positive factors
ACRES Commercial Realty (ACR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$155.24M
Dividend YieldN/A
Average Volume (3M)38.31K
Price to Earnings (P/E)7.7
Beta (1Y)0.29
Revenue Growth-10.95%
EPS Growth106.91%
CountryUS
Employees4
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.05
Shares Outstanding7,131,101
10 Day Avg. Volume30,592
30 Day Avg. Volume38,309
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)0.36
Price to Sales (P/S)0.92
P/FCF Ratio38.64
Enterprise Value/Market Cap13.05
Enterprise Value/Revenue11.41
Enterprise Value/Gross Profit20.39
Enterprise Value/Ebitda53.11
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.93
Revenue Forecast (FY)$81.20M
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 i...
How the Company Makes Money
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ACRES Commercial Realty Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call highlights strategic execution and portfolio growth — notable achievements include a $1.0 billion securitization, strong redeployment of real estate sale proceeds, a 66% increase in book value since 2020, loan portfolio growth to $2.2 billion, improved portfolio spreads and credit metrics, and an internalization transaction designed to align management and capture asset-management fees to support EAD and dividends. Offsetting items include a modest GAAP net loss of $1.0 million, a $1.4 million decline in net interest income during the ramp-up of the securitization, a slight quarter-over-quarter dip in book value, increased GAAP leverage to 3.4x, and constrained near-term liquidity with the company describing itself as fully invested. Overall, the positives around capital markets execution, portfolio expansion, improved yield protection and alignment from the internalization materially outweigh the measured near-term operational and liquidity headwinds.Positive Updates
Real Estate Sale and Gains
Sold a real estate investment in the Greater Philadelphia area realizing a $3.3 million GAAP and EAD gain; proceeds were redeployed into the loan book consistent with the company's strategy.
Negative Updates
GAAP Net Loss for the Quarter
Reported a GAAP net loss allocable to common shares of $1.0 million, or $0.16 per share, in Q1 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Real Estate Sale and Gains
Sold a real estate investment in the Greater Philadelphia area realizing a $3.3 million GAAP and EAD gain; proceeds were redeployed into the loan book consistent with the company's strategy.
Read all positive updates
Company Guidance
Management's guidance emphasized that the ACRES 2026‑FL4 $1.0 billion CRE securitization (86.5% leverage, priced at SOFR+1.68%, 30‑month reinvestment period) completed its ramp‑up in Q1 and will deliver full run‑rate benefit in Q2, supporting an increase in GAAP debt/equity to 3.4x at 3/31 from 2.8x at 12/31; the loan book is effectively fully invested at $2.2 billion across 60 investments after $495.6 million of new commitments (net increase $374.4 million after $121.2 million of payoffs/unfunded), with a weighted‑average spread on new loans of 3.09% and a portfolio spread of 3.29% over 1‑month SOFR (over 50% of the portfolio has SOFR floors >3%). Management highlighted credit and portfolio metrics—weighted average risk rating 2.5 (down from 2.7), 10 loans rated 4/5 representing 14% of economic interest (down from 17%)—and reserve positions (CECL reserve release $1.0 million, total allowance $19.4 million = 0.88% of the $2.2B portfolio). Near‑term financials and capital‑return signaling included Q1 EAD of $0.02 per share (vs. EAD loss $0.48 in Q4), GAAP net loss $1.0 million ($0.16/sh), net interest income $9.3 million (down $1.4M QoQ), book value $29.98 (vs. $30.01), available liquidity $87 million ($48M unrestricted cash, $38M projected financing), NOLs $32.1M (~$4.89/sh), and an internalization vote targeted for June 22 with close likely in July (post‑close insiders >40%); management said dividends will be paid “as earned,” expect to monetize non‑balance‑sheet fees to boost EAD, and cited comfort around ~3.5–4.0x leverage with modeled dividend outcomes ranging from mid‑single digits to mid‑teens.ACRES Commercial Realty Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
48
Neutral
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 165.90M | 83.49M | 91.13M | 62.88M | 106.43M |
| Gross Profit | 159.34M | 36.59M | 52.22M | 29.02M | 100.25M |
| EBITDA | 113.91M | 126.15M | 149.96M | 88.44M | 101.92M |
| Net Income | 21.32M | 29.27M | 22.39M | 10.62M | 33.92M |
Balance Sheet | |||||
| Total Assets | 2.16B | 1.88B | 2.20B | 2.38B | 2.28B |
| Cash, Cash Equivalents and Short-Term Investments | 85.96M | 56.71M | 83.45M | 66.23M | 35.50M |
| Total Debt | 1.59B | 1.41B | 1.72B | 1.91B | 1.82B |
| Total Liabilities | 1.61B | 1.43B | 1.75B | 1.94B | 1.84B |
| Stockholders Equity | 420.80M | 439.13M | 435.80M | 435.47M | 448.19M |
Cash Flow | |||||
| Free Cash Flow | 3.94M | 19.38M | 45.61M | 31.96M | 40.53M |
| Operating Cash Flow | 4.10M | 19.39M | 45.61M | 32.70M | 40.59M |
| Investing Cash Flow | -224.23M | 299.07M | 161.31M | -232.55M | -390.50M |
| Financing Cash Flow | 248.48M | -352.74M | -219.85M | 20.74M | 566.10M |
ACRES Commercial Realty Technical Analysis
Positive
19.52
Price Trends
18.95
Positive
20.11
Positive
20.10
Positive
Market Momentum
0.25
Negative
72.96
Negative
97.12
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 19.52 is above the 20-day moving average (MA) of 19.29, above the 50-day MA of 18.95, and below the 200-day MA of 20.10, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 72.96 is Negative, neither overbought nor oversold. The STOCH value of 97.12 is Negative, 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 69 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $186.42M | 10.50 | 5.14% | 13.82% | -7.31% | -22.36% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $224.98M | 4.71 | 17.10% | 14.83% | 31.22% | 58.24% | |
58 Neutral | $155.24M | 7.74 | 4.99% | ― | -10.95% | 106.91% | |
55 Neutral | $96.26M | 3.02 | 2.95% | 21.65% | -11.85% | -312.59% | |
46 Neutral | $60.78M | -2.38 | -1.20% | 23.03% | -35.24% | -141.71% | |
45 Neutral | $67.06M | -1.19 | -7.12% | 7.97% | -25.60% | 73.25% |
* Real Estate Sector Average
ACR
ACRES Commercial Realty
21.77
3.30
17.87%
SEVN
Seven Hills Realty Trust
8.25
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-19.41%
LFT
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1.16
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CHMI
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2.62
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GPMT
Granite Point Mortgage
1.41
-0.32
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AOMR
Angel Oak Mortgage
9.03
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6.45%
ACRES Commercial Realty Corporate Events
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsRegulatory Filings and Compliance
ACRES Commercial Realty to Internalize Management Through Merger
Positive
Apr 30, 2026
On April 29–30, 2026, ACRES Commercial Realty Corp. agreed to acquire its external manager’s parent, ACRES Capital Corp., in an all-stock merger that will internalize management and convert ACR from an externally managed to an internal...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
ACRES Commercial Realty Reports Q1 2026 Loss, Grows Lending
Negative
Apr 30, 2026
ACRES Commercial Realty Corp., a real estate investment trust specializing in commercial real estate mortgage lending and equity investments across U.S. middle-market properties, reported a GAAP net loss allocable to common shares of $1.0 million,...
Business Operations and StrategyFinancial Disclosures
ACRES Commercial Realty Reports Q4 Results, Highlights CLO
Neutral
Mar 4, 2026
ACRES Commercial Realty Corp., a real estate investment trust specializing in commercial real estate mortgage loans and equity investments across multifamily, student housing, hospitality, industrial and office properties, reported its financial r...
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.