Form 4: 10% Owner Sells ACR Preferred Stock Under 10b5-1 Plan

Eagle Point Credit Management and Eagle Point DIF GP I reported sales of ACRES Commercial Realty Corp. Series D Preferred Stock totaling 1,792 shares.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, identified as 10% owners and directors of ACRES Commercial Realty Corp. (ACR), reported sales of preferred stock.
• On January 21, 2026, 692 shares of 7.875% Series D Preferred Stock were sold at $22.07 per share.
• On January 23, 2026, an additional 1,100 shares of 7.875% Series D Preferred Stock were sold at a weighted average price of $22.02 per share, with prices ranging from $22.02 to $22.07.
• These transactions were conducted under a Rule 10b5-1(c) plan, indicating they were pre-scheduled.
• Following these sales, the reporting persons indirectly beneficially own 753,599 shares of 7.875% Series D Preferred Stock, 1,177,060 shares of Common Stock, and 358,430 shares of 8.625% Series C Preferred Stock.

Sentiment

Score: 5

Explanation: Neutral. While insider sales by a 10% owner can sometimes be viewed negatively, the transactions were conducted under a Rule 10b5-1 plan, suggesting they were pre-planned and not indicative of new negative information. The amount sold is also a relatively small fraction of the reporting persons' total beneficial holdings in ACRES Commercial Realty Corp.

Positives

• The sales were conducted under a Rule 10b5-1(c) plan, indicating pre-scheduled transactions rather than a reaction to immediate market conditions or new, non-public information.

Negatives

• A 10% owner and director selling shares could be perceived negatively by the market, as it reduces their stake in a specific class of the company's equity.

Future Outlook

No specific future outlook or guidance is provided in this insider transaction report.

Industry Context

This insider transaction report details sales of preferred stock by a significant owner and director of ACRES Commercial Realty Corp., a company operating in the commercial real estate sector. While insider sales can sometimes signal a lack of confidence, the execution under a Rule 10b5-1 plan suggests these were pre-scheduled and not necessarily a reaction to immediate market or company-specific news.

Related Party Transactions

• The reported transactions involve Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, which are identified as 10% owners and directors of ACRES Commercial Realty Corp., making these sales related party transactions.

Stakeholder Impact

• Shareholders: May view the sale by a significant owner as a slight negative signal, though the pre-planned nature under a 10b5-1 plan mitigates immediate concerns about company performance. The reduction in preferred stock holdings by a large investor could subtly impact sentiment for that specific security.

Key Dates

Recommendation

The filing reports routine insider sales by a 10% owner and director under a pre-arranged 10b5-1 plan. While any insider sale can raise questions, the pre-planned nature suggests it is not based on new, adverse information. The amount sold is relatively small compared to the total beneficial ownership across different security classes. Therefore, it does not present a strong signal for either buying or selling, warranting a 'hold' recommendation based solely on this filing.

Keywords

ACRES Commercial Realty Corp., ACR, Eagle Point Credit Management, Eagle Point DIF GP I, Insider Trading, Preferred Stock, Stock Sale, Beneficial Ownership, Rule 10b5-1