Form 4: ACR 10% Owner Sells Preferred Stock

Eagle Point Credit Management and Eagle Point DIF GP I, 10% owners of ACRES Commercial Realty Corp., reported sales of Series D and Series C Preferred Stock totaling 5,034 shares.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both 10% owners and directors of ACRES Commercial Realty Corp. (ACR), reported sales of preferred stock.
• A total of 2,166 shares of 7.875% Series D Preferred Stock were sold across three transactions between January 28, 2026, and January 30, 2026, at a price of $22.1 per share.
• Following these transactions, the reporting persons indirectly beneficially own 751,433 shares of 7.875% Series D Preferred Stock.
• An additional 2,868 shares of 8.625% Series C Preferred Stock were sold on January 30, 2026, at a weighted average price of $25.09 per share, with prices ranging from $25.08 to $25.10.
• After the Series C Preferred Stock sale, 355,562 shares of this class remain indirectly beneficially owned.
• The reporting persons also indirectly beneficially own 1,177,060 shares of Common Stock, $0.001 par value, though no transactions for common stock were reported in this filing.
• The securities are held by private investment funds and accounts managed by Eagle Point Credit Management LLC, with Eagle Point DIF GP I LLC serving as general partner to certain accounts.
• The reporting persons disclaim beneficial ownership for Section 16 purposes, despite including the securities in this report.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a moderately negative signal due to the significant sales of preferred stock by a 10% owner and director, which can erode investor confidence, despite the disclaimers of beneficial ownership.

Negatives

• Significant sales of preferred stock by a 10% owner and director, totaling 5,034 shares, could signal a lack of confidence or a strategic rebalancing away from ACRES Commercial Realty Corp.
• The sales occurred over multiple days, indicating a deliberate reduction in exposure.

Risks

• Investor sentiment may be negatively impacted by the sales from a significant insider, potentially leading to downward pressure on ACRES Commercial Realty Corp.'s stock price.
• The sales could be interpreted as a signal of potential future challenges for the company or the commercial real estate sector, although the filing itself does not provide reasons for the sales.
• The disclaimers of beneficial ownership, while standard for certain reporting structures, might add a layer of complexity to understanding the true alignment of interests.

Future Outlook

NA

Management Comments

• The securities are directly held by certain private investment funds and/or certain accounts (the "Applicable Accounts") managed by Eagle Point Credit Management LLC ("EPCM").
• Eagle Point DIF GP I LLC ("DIF GP") serves as general partner to certain Applicable Accounts.
• EPCM and DIF GP could be deemed to have an "indirect pecuniary interest" (within the meaning of Rule 16a-1(a)(2)(ii) under the Securities Exchange Act of 1934) in securities reported herein.
• Each of the Reporting Persons hereby disclaims beneficial ownership of the securities described in this report pursuant to Rule 16a-1(a)(4) under the Securities Exchange Act of 1934 and the inclusion of these securities in this report shall not be deemed an admission of beneficial ownership of any of the reported securities for purposes of Section 16 or for any other purpose.
• The price reported reflects the weighted average price per share. These securities were sold in multiple transactions at prices ranging from $25.08 to $25.10 per share, inclusive.

Industry Context

StockSavvy.ai notes that insider sales, particularly by a 10% owner in the commercial real estate sector, can sometimes precede broader market shifts or company-specific challenges. While the filing does not provide a rationale for the sales, such transactions are closely watched by investors for signals regarding the health of the company or the industry, especially given current macroeconomic uncertainties impacting real estate.

Related Party Transactions

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, as 10% owners and directors, engaged in sales of ACRES Commercial Realty Corp. preferred stock.
• The transactions involve entities managed by the reporting persons, indicating an indirect pecuniary interest.

Stakeholder Impact

• Shareholders: May experience negative sentiment and potential downward pressure on stock price due to perceived lack of confidence from a major insider.
• Company Management: May face questions regarding the reasons behind the insider sales and their implications for the company's future.

Key Dates

Recommendation

While significant insider sales by a 10% owner can be a negative signal, the filing does not provide specific reasons for the sales, which could be part of a broader portfolio rebalancing strategy by the investment funds. Given the lack of additional context on company performance or strategic shifts, a 'hold' recommendation is prudent, advising investors to monitor future filings and company announcements for further clarity before making a definitive 'sell' decision.

Keywords

ACRES Commercial Realty Corp., ACR, Eagle Point Credit Management, Eagle Point DIF GP I, Insider Sales, Preferred Stock, Form 4, SEC Filing, 10% Owner, Director, Commercial Real Estate