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

Eagle Point Credit Management LLC sold 1,674 shares of ACRES Commercial Realty Corp's 8.625% Series C Preferred Stock at an average price of $25.11 per share.

Summary

• Eagle Point Credit Management LLC, along with Eagle Point DIF GP I LLC, reported a sale of 1,674 shares of ACRES Commercial Realty Corp's 8.625% Series C Preferred Stock.
• The sale occurred on November 21, 2024, at a weighted average price of $25.11 per share, with individual transactions ranging from $25.10 to $25.13 per share.
• Following the transaction, Eagle Point Credit Management LLC indirectly holds 471,793 shares of the 8.625% Series C Preferred Stock, 909,783 shares of the 7.875% Series D Preferred Stock, and 1,191,307 shares of common stock.
• The reporting entities disclaim beneficial ownership of these securities, stating they are held by private investment funds and accounts managed by Eagle Point Credit Management LLC.

Sentiment

Score: 5

Explanation: The document reflects a routine transaction, with no clear positive or negative implications. The sale of shares is a normal activity for investment firms.

Negatives

• Eagle Point Credit Management LLC reduced its holdings of ACRES Commercial Realty Corp's 8.625% Series C Preferred Stock.

Risks

• The sale of shares by a significant holder like Eagle Point Credit Management LLC could potentially signal a change in their investment outlook on ACRES Commercial Realty Corp.
• The disclaimer of beneficial ownership by Eagle Point Credit Management LLC could indicate a complex ownership structure that may require further scrutiny.

Management Comments

• The reporting persons disclaim beneficial ownership of the securities described in this report.
• 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.

Industry Context

This filing reflects a transaction in the preferred stock of a commercial real estate finance company, ACRES Commercial Realty Corp. Such transactions are common in the financial markets and are often monitored by investors for insights into the sentiment of major holders.

Comparison to Industry Standards

• Transactions of this nature are typical for investment management firms like Eagle Point Credit Management, which frequently adjust their holdings in various securities.
• The sale of preferred stock is a common occurrence and the size of the transaction is not unusual for a firm of this size.
• It is common for investment firms to disclaim beneficial ownership when holding securities on behalf of managed funds.

Stakeholder Impact

• The sale of shares may have a minor impact on the share price of ACRES Commercial Realty Corp.
• The transaction is unlikely to have a significant impact on other stakeholders.

Key Dates

Keywords

ACRES Commercial Realty Corp, Eagle Point Credit Management, Preferred Stock, Series C, Series D, Stock Sale, Beneficial Ownership, SEC Form 4