Form 4: Eagle Point Funds Trim ACRES Preferred Stock Holdings

Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC reported sales of ACRES Commercial Realty Corp. preferred stock, executed under a Rule 10b5-1 plan.

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., reported sales of preferred stock.
• The transactions were executed pursuant to a Rule 10b5-1(c) plan, indicating they were pre-scheduled.
• On February 2, 2026, 5,200 shares of 7.875% Series D Preferred Stock were sold at a weighted average price of $22.11 per share.
• On February 3, 2026, 44 shares of 7.875% Series D Preferred Stock were sold at $22.12 per share, and 5 shares of 8.625% Series C Preferred Stock were sold at $25.1 per share.
• On February 4, 2026, an additional 97 shares of 7.875% Series D Preferred Stock were sold at $22.12 per share.
• Following these transactions, the reporting persons indirectly beneficially own 746,092 shares of 7.875% Series D Preferred Stock, 355,557 shares of 8.625% Series C Preferred Stock, and 1,177,060 shares of Common 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 certain accounts.
• The reporting persons disclaim beneficial ownership of the securities per Rule 16a-1(a)(4).

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral event, as the sales were pre-scheduled under a Rule 10b5-1 plan, mitigating concerns typically associated with insider selling.

Negatives

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, significant owners and directors, reduced their indirect holdings of ACRES Commercial Realty Corp. 7.875% Series D Preferred Stock by a total of 5,341 shares and 8.625% Series C Preferred Stock by 5 shares.

Future Outlook

NA

Management Comments

• Reporting Persons disclaim 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

StockSavvy.ai notes that sales executed under a Rule 10b5-1 plan are pre-scheduled and generally viewed as less indicative of an insider's immediate sentiment about the company's prospects compared to open market sales without such a plan. These transactions often reflect portfolio rebalancing or liquidity needs rather than a negative outlook.

Stakeholder Impact

• Shareholders may interpret the sales as a reduction in exposure by a significant owner, though the Rule 10b5-1 plan suggests a pre-planned portfolio adjustment rather than a reaction to new company-specific information.

Key Dates

Recommendation

The sales by Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, while significant in volume, were executed under a Rule 10b5-1 plan. This indicates the transactions were pre-scheduled and not necessarily a reflection of a change in the reporting persons' immediate outlook on ACRES Commercial Realty Corp. Therefore, a 'hold' recommendation is appropriate, as this filing alone does not provide sufficient new information to alter a fundamental investment thesis.

Keywords

ACRES Commercial Realty, ACR, Form 4, insider sales, preferred stock, Rule 10b5-1, Eagle Point Credit Management