Form 4: Eagle Point Credit Management Sells Shares in ACRES Commercial Realty Corp.

Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC have sold shares of ACRES Commercial Realty Corp. preferred stock, according to a recent SEC filing.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both identified as 10% owners and directors of ACRES Commercial Realty Corp., have reported selling shares of the company's preferred stock.
• On November 19, 2024, 270 shares of 7.875% Series D Preferred Stock were sold at a weighted average price of $23.30 per share.
• On November 20, 2024, 6,232 shares of 8.625% Series C Preferred Stock were sold at a weighted average price of $25.10 per share.
• The sales were executed through multiple transactions at varying prices within the ranges of $23.29 to $23.30 for the Series D stock and $25.07 to $25.19 for the Series C stock.
• Following these transactions, Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC indirectly beneficially own 909,783 shares of 7.875% Series D Preferred Stock, 473,467 shares of 8.625% Series C Preferred Stock, and 1,191,307 shares of common stock.
• The reporting persons have disclaimed beneficial ownership of the securities, stating that the inclusion of these securities in the report should not be deemed an admission of beneficial ownership.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the sale of shares by a major shareholder, which could indicate a lack of confidence in the company's future performance. However, the disclaimer of beneficial ownership mitigates some of the negative impact.

Negatives

• The sale of preferred stock by a significant shareholder could be perceived negatively by the market.

Risks

• The sale of shares by a major shareholder could indicate a change in their investment outlook for ACRES Commercial Realty Corp.
• The market may react negatively to the reduction in holdings by Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC.

Management Comments

• The reporting persons disclaim beneficial ownership of the securities, stating that the inclusion of these securities in the report should not be deemed an admission of beneficial ownership.

Industry Context

This filing reflects a transaction in the real estate investment trust (REIT) sector, where changes in ownership by significant shareholders are closely monitored by the market.

Comparison to Industry Standards

• Sales of preferred stock by major shareholders are not uncommon in the REIT sector, but the market reaction can vary depending on the company's performance and overall market conditions.
• Comparable transactions would include other instances of significant shareholders selling preferred stock in similar REITs, such as those in the commercial real estate space. However, without specific data on those transactions, a direct comparison is difficult.

Stakeholder Impact

• Shareholders may react to the sale of shares by a major shareholder, potentially impacting the stock price.
• The sale could also affect the perception of the company's stability and future prospects.

Key Dates

Keywords

ACRES Commercial Realty Corp., Eagle Point Credit Management LLC, Eagle Point DIF GP I LLC, preferred stock, share sale, beneficial ownership, SEC Form 4, Series D Preferred Stock, Series C Preferred Stock