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

Eagle Point Credit Management, a 10% owner and director of ACRES Commercial Realty Corp., sold 15,184 shares of 7.875% Series D Preferred Stock in pre-planned transactions.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, identified as 10% owners and directors of ACRES Commercial Realty Corp. (ACR), reported sales of preferred stock.
• On July 22, 2025, 15,084 shares of 7.875% Series D Preferred Stock were sold at a weighted average price of $22.3 per share, with prices ranging from $22.24 to $22.38.
• On July 23, 2025, an additional 100 shares of 7.875% Series D Preferred Stock were sold at $22.32 per share.
• Following these transactions, Eagle Point Credit Management LLC indirectly beneficially owns 819,709 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 sales were conducted pursuant to a Rule 10b5-1(c) plan, indicating pre-scheduled transactions.

Sentiment

Score: 5

Explanation: The sale of preferred stock by a 10% owner/director is generally a neutral event when conducted under a pre-planned Rule 10b5-1 program, as it does not necessarily reflect a change in the insider's view of the company's prospects.

Positives

• The sales were executed under a Rule 10b5-1(c) plan, suggesting they were pre-scheduled and not a reaction to new negative information about the company.

Negatives

• A significant holder and director, Eagle Point Credit Management LLC, reduced its stake in the company's preferred stock.

Future Outlook

No forward-looking statements or guidance are provided in this Form 4 filing.

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 $22.24 to $22.38 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 details specific insider transactions and does not provide broader industry context or trends.

Related Party Transactions

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, identified as 10% owners and directors of ACRES Commercial Realty Corp., sold preferred stock of the issuer. These transactions are considered related party dealings due to the reporting persons' significant relationship with the issuer.

Stakeholder Impact

• Shareholders: The sale by a significant holder could be perceived negatively by some shareholders, although the Rule 10b5-1 plan mitigates concerns about insider sentiment.

Key Dates

Recommendation

The filing reports a pre-planned sale of preferred stock by a significant insider (10% owner and director) under a Rule 10b5-1 plan. While any insider sale can be viewed with caution, the pre-scheduled nature suggests it's not based on new, negative information. The transaction itself does not provide new fundamental insights into the company's operations or future prospects that would warrant a change in investment thesis. Therefore, a 'hold' recommendation is appropriate, maintaining current positions while awaiting further operational or financial updates.

Keywords

ACRES Commercial Realty Corp., ACR, Eagle Point Credit Management, Eagle Point DIF GP I LLC, Form 4, SEC filing, insider trading, preferred stock, stock sale, 10% owner, director, Rule 10b5-1