Form 4: Eagle Point Credit Management Reports Sale of ACRES Commercial Realty Preferred Stock

Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, significant shareholders in ACRES Commercial Realty Corp., reported the sale of a small portion of their 7.875% Series D Preferred Stock.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, identified as 10% owners and potentially directors of ACRES Commercial Realty Corp. (ACR), filed a Form 4.
• The filing details the sale of 7.875% Series D Preferred Stock.
• On June 24, 2025, 2,222 shares were sold at a weighted average price of $22.45 per share.
• On June 25, 2025, an additional 10 shares were sold at a weighted average price of $22.48 per share.
• Following these transactions, Eagle Point entities indirectly beneficially own 845,269 shares of 7.875% Series D Preferred Stock.
• They also indirectly beneficially own 1,177,060 shares of Common Stock and 393,646 shares of 8.625% Series C Preferred Stock, for which no transactions were reported in this filing.
• The securities are held by private investment funds and/or 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 explicitly disclaim beneficial ownership of the reported securities pursuant to Rule 16a-1(a)(4) under the Securities Exchange Act of 1934.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While insider sales can be perceived negatively, the small volume relative to total holdings and the explicit disclaimer of beneficial ownership by the investment fund suggest these are routine portfolio adjustments rather than a bearish signal on the issuer.

Positives

• The sales represent a very small fraction of the total indirect holdings in ACRES Commercial Realty Corp. preferred and common stock, suggesting no major divestment.
• The reporting persons explicitly disclaim beneficial ownership, indicating these transactions may be part of routine portfolio management rather than a direct statement on the issuer's prospects.

Negatives

• A 10% owner and director selling shares, even a small amount, can sometimes be perceived negatively by the market as it might suggest a lack of confidence.

Risks

• Potential negative market perception due to insider sales, although mitigated by the small volume and the nature of the reporting entity as an investment fund.

Future Outlook

The Form 4 filing does not contain any forward-looking statements or guidance regarding the issuer's future performance or strategic direction.

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 $22.44 to $22.48 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 is a routine disclosure of insider trading activity by a significant shareholder in ACRES Commercial Realty Corp., a real estate investment trust (REIT). Such filings are common in the financial industry as investment funds manage their portfolios, and do not inherently reflect broader industry trends unless part of a larger pattern of divestment across multiple entities.

Stakeholder Impact

• Shareholders of ACRES Commercial Realty Corp. may observe the insider sales, which could lead to minor shifts in market sentiment, though the impact is likely limited given the small transaction volume and the nature of the reporting entity.

Next Steps

• The document does not specify any future actions, events, or milestones for ACRES Commercial Realty Corp. or the reporting persons beyond the completion of the reported transactions.

Key Dates

Keywords

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