Form 4: Eagle Point Credit Management Sells ACR Preferred Stock

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 972 shares.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC reported transactions in ACRES Commercial Realty Corp. (ACR) securities.
• The reporting persons are identified as a Director and 10% Owner of ACR.
• On October 28, 2025, 200 shares of 7.875% Series D Preferred Stock were sold at a price of $22.07 per share.
• On October 29, 2025, an additional 772 shares of 7.875% Series D Preferred Stock were sold at a price of $22.10 per share.
• These transactions were made pursuant to a Rule 10b5-1(c) plan.
• Following these transactions, the reporting persons indirectly beneficially own 770,512 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, despite potentially having an indirect pecuniary interest.

Sentiment

Score: 5

Explanation: The filing reports routine insider sales under a 10b5-1 plan, which is a neutral event. The sales are small relative to total holdings and pre-scheduled, not indicating a strong positive or negative sentiment.

Positives

• The transactions were executed under a Rule 10b5-1(c) plan, indicating pre-planned sales rather than reactive decisions based on new information.

Negatives

• Reporting persons, who are 10% owners and directors, sold a total of 972 shares of 7.875% Series D Preferred Stock.

Future Outlook

NA

Industry Context

This filing reflects routine insider trading activity for a real estate investment trust (REIT) or similar entity, where preferred stock and common stock holdings are common. The sales are relatively small and executed under a 10b5-1 plan, suggesting a pre-determined liquidity event rather than a reaction to specific market conditions or company performance.

Corporate Governance

Related Party Transactions

• The reporting persons, Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, are identified as a Director and 10% Owner of ACRES Commercial Realty Corp.
• The securities are indirectly 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 some of these accounts.
• The reporting persons disclaim beneficial ownership for Section 16 purposes, despite potentially having an indirect pecuniary interest.

Stakeholder Impact

• Shareholders: The sale of preferred stock by a 10% owner and director, even if pre-planned, could be interpreted by some shareholders as a slight negative signal, though the volume is small. The disclosure of indirect ownership provides transparency.

Key Dates

Recommendation

The filing is a routine Form 4 reporting pre-scheduled insider sales under a 10b5-1 plan. These transactions are not typically indicative of new material information that would warrant a change in investment recommendation. The sales volume is small relative to the total holdings, and the pre-planned nature suggests a liquidity event rather than a reaction to company-specific news. Therefore, a 'hold' recommendation is appropriate as this filing alone does not provide sufficient new information to alter an existing investment thesis.

Keywords

ACRES Commercial Realty Corp., ACR, Eagle Point Credit Management, SEC Form 4, Insider Trading, Preferred Stock, Beneficial Ownership, Rule 10b5-1, Director Sales, 10% Owner