Form 4: Eagle Point Reduces ACRES Preferred Stock Holdings

Eagle Point Credit Management and DIF GP I LLC reported sales of ACRES Commercial Realty Corp. preferred stock totaling 5,282 shares across two series.

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 sales of preferred stock.
• On March 2, 2026, 700 shares of 7.875% Series D Preferred Stock were sold at a weighted average price of $22.03 per share, with prices ranging from $22.00 to $22.04.
• Following this transaction, 745,119 shares of 7.875% Series D Preferred Stock are indirectly beneficially owned.
• On March 3, 2026, an additional 3,142 shares of 7.875% Series D Preferred Stock were sold at a weighted average price of $21.80 per share, with prices ranging from $21.80 to $21.85.
• After this second transaction, 741,977 shares of 7.875% Series D Preferred Stock are indirectly beneficially owned.
• On March 2, 2026, 1,440 shares of 8.625% Series C Preferred Stock were sold at a weighted average price of $25.08 per share, with prices ranging from $25.05 to $25.10.
• Following this transaction, 349,907 shares of 8.625% Series C Preferred Stock are indirectly beneficially owned.
• The reporting persons also indirectly beneficially own 1,177,060 shares of Common Stock, $0.001 par value, for which no transactions were reported in this filing.
• The securities are directly held by private investment funds and/or accounts managed by Eagle Point Credit Management LLC, with Eagle Point DIF GP I LLC serving as general partner to certain accounts.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a moderately negative signal. While the sales are of preferred stock and the reporting persons disclaim beneficial ownership, significant insider selling by a 10% owner and director can raise concerns about future prospects or valuation.

Negatives

• A 10% owner and director selling preferred stock could be interpreted negatively by the market, potentially signaling a lack of confidence or a reallocation of capital away from the issuer.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance from the company or the reporting persons regarding future performance or strategy.

Management Comments

• 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

StockSavvy.ai notes that insider sales, particularly by significant shareholders like 10% owners and directors, are closely watched by the market. While these transactions are specific to ACRES Commercial Realty Corp., they can sometimes reflect broader sentiment within the real estate investment trust (REIT) sector, especially concerning preferred equity valuations or capital allocation strategies.

Stakeholder Impact

• Shareholders: May interpret the sales by a 10% owner and director as a negative signal, potentially leading to downward pressure on the stock price, particularly for the preferred shares.

Key Dates

Recommendation

While insider selling by a 10% owner and director is generally a negative indicator, these transactions involve preferred stock and the reporting persons disclaim beneficial ownership. The sales are relatively small in the context of their overall holdings. Investors should monitor future insider activity and company performance, but a 'hold' recommendation is appropriate given the nuanced nature of the filing without further fundamental changes.

Keywords

ACRES Commercial Realty Corp, ACR, Eagle Point Credit Management, Insider Sales, Preferred Stock, Form 4, Beneficial Ownership, Director Sales, 10% Owner