Form 4: Eagle Point Credit Management Sells ACR Preferred Stock

Eagle Point Credit Management, a 10% owner and director of ACRES Commercial Realty Corp., reported sales of 7.875% Series D Preferred Stock totaling 10,730 shares over three days in September 2025.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, entities serving as a director and 10% owner of ACRES Commercial Realty Corp. (ACR), reported sales of the issuer's 7.875% Series D Preferred Stock.
• The transactions occurred on September 9, 10, and 11, 2025, and were executed pursuant to a Rule 10b5-1(c) plan.
• On September 9, 2025, 1,643 shares were sold at a weighted average price of $22.43 per share, with prices ranging from $22.42 to $22.45.
• On September 10, 2025, 3,142 shares were sold at a weighted average price of $22.48 per share, with prices ranging from $22.48 to $22.51.
• On September 11, 2025, 5,945 shares were sold at a weighted average price of $22.52 per share, with prices ranging from $22.50 to $22.55.
• Following these transactions, the reporting persons indirectly beneficially own 781,067 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 reporting persons disclaim beneficial ownership of the reported securities for Section 16 purposes.

Sentiment

Score: 4

Explanation: The sale of preferred stock by a significant owner and director, even if pre-planned under a 10b5-1 plan, generally carries a slightly negative sentiment as it reduces insider exposure to the company. However, the pre-planned nature mitigates a strong negative interpretation.

Positives

• The sales were conducted under a Rule 10b5-1(c) plan, indicating pre-scheduled transactions rather than a reaction to recent negative developments.
• The sales occurred at prices ranging from $22.42 to $22.55 per share, which could be seen as favorable pricing for the seller.

Negatives

• A significant 10% owner and director entity sold a total of 10,730 shares of preferred stock, which could be interpreted by some investors as a reduction in exposure or a lack of confidence.

Future Outlook

NA

Industry Context

NA

Related Party Transactions

• The transactions involve the sale of securities of ACRES Commercial Realty Corp. by Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, which are identified as a 10% owner and director of the issuer. These are considered related party transactions due to the reporting persons' relationship with the issuer.

Stakeholder Impact

• Shareholders could interpret the sales as a signal from a significant insider, potentially influencing their perception of the stock's future performance.
• Company management might face questions from investors regarding the insider's view of the company's prospects, requiring management to address any concerns.

Key Dates

Recommendation

While insider sales by a significant owner can be a negative signal, the fact that these sales were pre-planned under a 10b5-1 plan suggests they are not a reaction to new, adverse information. The sales are of preferred stock, not common stock, and the remaining beneficial ownership is still substantial. Therefore, a 'hold' recommendation is appropriate, advising investors to monitor future filings and company performance rather than reacting strongly to these pre-scheduled transactions.

Keywords

ACRES Commercial Realty Corp., ACR, Eagle Point Credit Management, Eagle Point DIF GP I LLC, Form 4, Insider Trading, Preferred Stock, Series D Preferred Stock, Stock Sales, 10b5-1 plan