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

Eagle Point Credit Management LLC, a 10% owner of ACRES Commercial Realty Corp., reported the sale of 6,160 shares of 7.875% Series D Preferred Stock at a weighted average price of $22.21 per share.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC are the reporting persons.
• The issuer is ACRES Commercial Realty Corp. (ACR).
• The reporting persons are identified as 10% owners of the issuer.
• A transaction involving the sale of 6,160 shares of 7.875% Series D Preferred Stock occurred on July 10, 2025.
• The shares were sold at a weighted average price of $22.21 per share, with prices ranging from $22.20 to $22.24.
• Following the reported transaction, the reporting persons indirectly beneficially own 835,092 shares of 7.875% Series D Preferred Stock, 1,177,060 shares of Common Stock, and 393,646 shares of 8.625% Series C Preferred Stock.
• The securities are directly held by certain 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 disclaim beneficial ownership of the securities reported, stating that inclusion in the report is not an admission of beneficial ownership for Section 16 or any other purpose.

Sentiment

Score: 3

Explanation: The sale of preferred stock by a 10% owner, even with a disclaimer of beneficial ownership, can be perceived negatively by the market as it represents a reduction in the insider's stake.

Negatives

• The sale of 6,160 shares of 7.875% Series D Preferred Stock by a 10% owner, Eagle Point Credit Management LLC, could be interpreted by the market as a lack of confidence or a portfolio rebalancing.

Risks

• Potential investor concern regarding the sale of preferred stock by a significant owner, which might signal a negative outlook or strategic portfolio adjustment.

Future Outlook

NA

Management Comments

• Reporting Persons disclaim beneficial ownership of the securities described in this report pursuant to Rule 16a-1(a)(4) under the Securities Exchange Act of 1934, stating that inclusion 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.

Industry Context

NA

Related Party Transactions

• Sale of 6,160 shares of 7.875% Series D Preferred Stock by Eagle Point Credit Management LLC, a 10% owner and general partner to certain accounts holding the securities.

Stakeholder Impact

• Shareholders may interpret the insider sale as a negative signal regarding the company's future prospects or the value of its preferred stock.

Next Steps

• The reporting person undertakes to provide full information regarding the number of shares sold at each separate price within the reported ranges upon request by the staff of the Securities and Exchange Commission, the Issuer, or any security holder of the Issuer.

Key Dates

Keywords

SEC Form 4, Insider Trading, Beneficial Ownership, ACRES Commercial Realty Corp., ACR, Eagle Point Credit Management, Preferred Stock, Stock Sale, Institutional Investor