Form 4: Eagle Point Reduces ACR Preferred Stock Holdings

Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC reported sales of ACRES Commercial Realty Corp. Series C Preferred Stock totaling 147 shares.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, identified as a Director and 10% Owner of ACRES Commercial Realty Corp. (ACR), reported transactions.
• On December 4, 2025, 48 shares of 8.625% Series C Preferred Stock were disposed of at a price of $25.22 per share.
• On December 5, 2025, an additional 99 shares of 8.625% Series C Preferred Stock were disposed of at a price of $25.22 per share.
• These transactions were made pursuant to a Rule 10b5-1(c) plan, indicating they were pre-scheduled.
• Following these transactions, the reporting persons indirectly beneficially own 763,436 shares of 7.875% Series D Preferred Stock, 1,177,060 shares of Common Stock, and 382,262 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 certain accounts.
• The reporting persons disclaim beneficial ownership of the reported securities for Section 16 purposes.

Sentiment

Score: 5

Explanation: The filing reports routine insider sales of a small number of preferred shares under a pre-arranged 10b5-1 plan, indicating a neutral impact on company sentiment. The transactions are not indicative of a significant change in the company's fundamental outlook.

Positives

• Transactions were executed under a Rule 10b5-1(c) plan, indicating pre-planned sales rather than reactive decisions based on new, non-public information.

Negatives

• A Director and 10% owner reduced their holdings in Series C Preferred Stock, which could be interpreted as a minor negative signal by some investors, although the amount is small.

Future Outlook

NA

Industry Context

This is a routine insider transaction filing for a real estate investment trust (REIT) or similar commercial realty entity. It reflects a minor adjustment in a large holder's preferred stock position. Such transactions are common and often part of portfolio rebalancing or liquidity management strategies, especially when executed under a 10b5-1 plan, which signals a pre-determined sale schedule rather than a reaction to immediate market conditions.

Related Party Transactions

• The reported sales of 8.625% Series C Preferred Stock by Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC are considered related party transactions due to their status as a Director and 10% Owner of ACRES Commercial Realty Corp.

Stakeholder Impact

• Shareholders: The impact on shareholders is likely minimal due to the small volume of shares sold. While any insider sale can be perceived as a slight negative signal, the execution under a 10b5-1 plan mitigates concerns about immediate negative sentiment.

Key Dates

Recommendation

The reported transactions are routine insider sales of a very small number of preferred shares under a pre-arranged 10b5-1 plan. This type of filing typically does not provide new fundamental information about the company's performance or outlook that would warrant a change in investment recommendation. The sales are too minor to signal a significant shift in the insider's view of the company, thus a 'hold' recommendation remains appropriate based solely on this filing.

Keywords

ACRES Commercial Realty Corp, ACR, Eagle Point Credit Management, Eagle Point DIF GP I LLC, Form 4, insider trading, preferred stock, common stock, beneficial ownership, Rule 10b5-1