Form 4: Eagle Point Entities Report Sales of ACRES Commercial Realty Preferred Stock

Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, 10% owners of ACRES Commercial Realty Corp., reported sales of 7.875% Series D Preferred Stock totaling 1,949 shares in early July 2025.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, identified as 10% owners of ACRES Commercial Realty Corp. (ACR), reported transactions involving the issuer's securities.
• On July 7, 2025, 273 shares of 7.875% Series D Preferred Stock were disposed of at a price of $22.2 per share.
• On July 8, 2025, an additional 1,676 shares of 7.875% Series D Preferred Stock were disposed of at a price of $22.2 per share.
• Following these transactions, the indirect beneficial ownership of 7.875% Series D Preferred Stock stands at 841,252 shares.
• The reporting persons also indirectly beneficially own 1,177,060 shares of Common Stock, $0.001 par value, and 393,646 shares of 8.625% Series C Preferred Stock.
• The securities are 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 of the reported securities, stating the inclusion in the report does not admit beneficial ownership for Section 16 or other purposes.

Sentiment

Score: 5

Explanation: The document reports sales of preferred stock by a 10% owner. While sales by insiders can sometimes be viewed negatively, the amounts are relatively small (1,949 shares out of 842,928 initially held) and the reporting persons explicitly disclaim beneficial ownership, suggesting these might be routine portfolio adjustments rather than a signal of negative sentiment towards the issuer.

Negatives

• Sales of preferred stock by a significant owner could be perceived negatively by the market, although the amounts are relatively small compared to total holdings.

Risks

• The reporting persons disclaim beneficial ownership of the securities, which could introduce ambiguity regarding their actual control or influence over the reported shares.

Future Outlook

The Form 4 filing is a historical report of insider transactions and does not contain forward-looking statements or guidance regarding the company's future outlook.

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 Form 4 filing details specific insider transactions and does not provide broader industry context or trends. It is a routine disclosure of changes in beneficial ownership by a significant shareholder.

Comparison to Industry Standards

• This document is a standard SEC Form 4 filing, reporting insider transactions. Its content is specific to the reporting entities and ACRES Commercial Realty Corp. and does not lend itself to direct comparison with industry-wide financial benchmarks or specific projects of comparable companies. The reported sales are relatively small in the context of the total holdings of preferred and common stock.

Stakeholder Impact

• Shareholders: Sales by a 10% owner could be interpreted as a slight negative signal, though the disclaimer of beneficial ownership and the relatively small volume of shares sold might mitigate this perception.

Key Dates

Keywords

ACRES Commercial Realty Corp., ACR, Eagle Point Credit Management LLC, Eagle Point DIF GP I LLC, Form 4, SEC filing, insider trading, beneficial ownership, preferred stock, common stock, securities sales