Form 4: Eagle Point Credit Sells ACRES Preferred Stock

Eagle Point Credit Management and its affiliate reported sales of ACRES Commercial Realty Corp. 7.875% Series D Preferred Stock totaling 2,943 shares over three days in late August 2025.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, entities identified as a Director and 10% Owner of ACRES Commercial Realty Corp. (ACR), reported sales of preferred stock.
• The transactions involved the disposition of 7.875% Series D Preferred Stock.
• On August 25, 2025, 744 shares were sold at a price of $22.3 per share.
• On August 26, 2025, 850 shares were sold at a price of $22.35 per share.
• On August 27, 2025, 1,349 shares were sold at a price of $22.35 per share.
• Following these transactions, the reporting persons indirectly beneficially own 796,066 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, noting their indirect pecuniary interest through managed investment funds and accounts.

Sentiment

Score: 5

Explanation: The filing is a standard Form 4 reporting insider sales, which are generally neutral. The sales are relatively small compared to the total holdings, and the disclaimer of beneficial ownership suggests these are part of managed fund activities rather than a direct personal investment decision.

Positives

• The reporting entities continue to hold a significant number of shares across different classes of ACRES Commercial Realty Corp. securities, indicating continued investment interest.

Negatives

• The sale of 2,943 shares of 7.875% Series D Preferred Stock by a 10% owner and director could be interpreted as a slight reduction in conviction or a portfolio rebalancing.

Future Outlook

No forward-looking statements or guidance are provided in this Form 4 filing, which is solely for reporting changes in beneficial ownership.

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.

Industry Context

This filing reports routine insider transactions for a real estate investment trust (REIT). Such sales by institutional investors or 10% owners are common for portfolio rebalancing or liquidity management and do not necessarily indicate a negative outlook on the broader commercial real estate market or ACRES Commercial Realty Corp.'s specific performance, especially given the disclaimer of beneficial ownership for Section 16 purposes.

Related Party Transactions

• The reported transactions are sales of ACRES Commercial Realty Corp. securities by Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, which are identified as a Director and 10% Owner of the issuer, making these related party transactions under SEC rules.
• The reporting persons manage private investment funds and accounts that directly hold the securities, establishing an indirect pecuniary interest.

Stakeholder Impact

• Shareholders: The sale of preferred stock by a significant institutional investor could be viewed with slight caution, though the small scale and the nature of the reporting entities (fund managers) suggest it's likely part of routine portfolio management rather than a signal of fundamental issues.
• Employees, Customers, Suppliers, Creditors: No direct impact on these stakeholders is indicated by this filing.

Key Dates

Recommendation

This Form 4 filing reports routine insider sales by an institutional investor acting as a 10% owner and director. The sales are minor in the context of their overall holdings and are likely part of portfolio rebalancing for managed funds, as indicated by the beneficial ownership disclaimer. There is no information within this filing to suggest a change in the fundamental outlook for ACRES Commercial Realty Corp. that would warrant a 'buy' or 'sell' recommendation. Therefore, a 'hold' recommendation is appropriate, maintaining current positions while awaiting further fundamental news or financial reports.

Keywords

ACRES Commercial Realty Corp., ACR, Eagle Point Credit Management, Eagle Point DIF GP I, Form 4, insider trading, preferred stock, beneficial ownership, stock sale, SEC filing, real estate investment trust, REIT