Form 4: Eagle Point Credit Management Divests Preferred Stock in ACRES Commercial Realty

Eagle Point Credit Management LLC, a 10% owner and director of ACRES Commercial Realty Corp., reported sales of 7.875% Series D Preferred Stock totaling 2,068 shares across three transactions in late June 2025.

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 June 26, 2025, 54 shares of 7.875% Series D Preferred Stock were sold at $22.48 per share.
• On June 27, 2025, an additional 1,958 shares of 7.875% Series D Preferred Stock were sold at $22.48 per share.
• On June 30, 2025, 56 shares of 7.875% Series D Preferred Stock were sold at $22.52 per share.
• The total number of 7.875% Series D Preferred Stock shares beneficially owned indirectly by the reporting persons after these transactions is 843,201.
• The reporting persons also indirectly beneficially own 1,177,060 shares of Common Stock and 393,646 shares of 8.625% Series C Preferred Stock.
• The reported prices for the Series D Preferred Stock sales reflect weighted average prices, with individual transactions ranging from $22.47 to $22.50 per share.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the insider sales of preferred stock by a 10% owner and director. While the quantity is small relative to total holdings, insider selling generally indicates a less positive outlook than buying or holding.

Positives

• The reporting persons continue to hold substantial indirect beneficial ownership in ACRES Commercial Realty Corp., including over 1.1 million shares of common stock and significant preferred stock holdings, indicating continued investment interest.

Negatives

• The reporting persons, identified as 10% owners and directors, sold a total of 2,068 shares of 7.875% Series D Preferred Stock.
• Sales by insiders, particularly 10% owners and directors, can sometimes be interpreted as a lack of confidence in the near-term prospects of the company, even if the quantities are relatively small compared to total holdings.

Future Outlook

No forward-looking statements or guidance are provided in this Form 4 filing.

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 $22.47 to $22.50 per share, inclusive. Upon request by the staff of the Securities and Exchange Commission, the Issuer or any security holder of the Issuer, the reporting person undertakes to provide full information regarding the number of shares sold at each separate price within the ranges set forth in this footnote.

Industry Context

This Form 4 filing reports routine insider transactions and does not provide sufficient information to analyze broader industry trends or competitive landscape.

Comparison to Industry Standards

• This document is a standard insider trading report (Form 4) and does not contain information suitable for comparison to global benchmarks, specific comparable companies, projects, or results.

Related Party Transactions

• The reported sales of 7.875% Series D Preferred Stock by Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC are considered related party transactions, as these entities are identified as 10% owners and directors of ACRES Commercial Realty Corp.

Stakeholder Impact

• Shareholders: The sale of preferred stock by a significant insider could be perceived negatively, potentially influencing investor sentiment and the stock price.
• Employees, Customers, Suppliers, Creditors: This filing does not contain information that directly impacts these stakeholders.

Key Dates

Recommendation

Keywords

ACRES Commercial Realty Corp., ACR, Eagle Point Credit Management LLC, Eagle Point DIF GP I LLC, Form 4, Insider Trading, Preferred Stock, Common Stock, Beneficial Ownership, SEC Filing, Stock Sales, Institutional Investor