Form 4: Eagle Point Reduces ACRES Preferred Stock Stake

Eagle Point Credit Management and its affiliate sold a portion of their 7.875% Series D Preferred Stock in ACRES Commercial Realty Corp.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, identified as 10% owners and potentially directors of ACRES Commercial Realty Corp. (ACR), reported sales of preferred stock.
• On August 19, 2025, 1,674 shares of 7.875% Series D Preferred Stock were sold at a price of $22.30 per share.
• On August 21, 2025, an additional 4,291 shares of 7.875% Series D Preferred Stock were sold at a weighted average price of $22.31 per share, with prices ranging from $22.30 to $22.33.
• Following these transactions, the reporting persons beneficially own 799,009 shares of 7.875% Series D Preferred Stock.
• The reporting persons also hold 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 securities for Section 16 purposes, citing an indirect pecuniary interest through managed private investment funds and accounts.

Sentiment

Score: 4

Explanation: A 10% owner and significant shareholder sold a small portion of preferred stock, which can be perceived as a slight negative signal, though the amount is not substantial relative to total holdings.

Negatives

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, significant shareholders and 10% owners, sold 5,965 shares of 7.875% Series D Preferred Stock.

Future Outlook

No forward-looking statements or guidance are provided in this filing.

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.
• The price reported reflects the weighted average price per share. These securities were sold in multiple transactions at prices ranging from $22.30 to $22.33 per share, inclusive. Upon request by the staff of the Securities and Exchange Commission, the Issuer or any security holder of the Issuer, the reporting person undertakes to provide full information regarding the number of shares sold at each separate price within the ranges set forth in this footnote.

Industry Context

This filing is an insider transaction report and does not provide broader industry context or trends.

Related Party Transactions

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, entities deemed 10% owners and potentially directors, sold shares of ACRES Commercial Realty Corp. preferred stock.

Stakeholder Impact

• Shareholders: May interpret the sale by a significant owner as a slight negative signal, potentially impacting sentiment.

Key Dates

Recommendation

While a 10% owner sold a portion of preferred stock, the amount is relatively small compared to their overall holdings, suggesting a minor portfolio adjustment rather than a loss of confidence. This transaction alone does not indicate a significant shift in the company's fundamentals to warrant a strong buy or sell recommendation.

Keywords

SEC Form 4, Insider Trading, ACRES Commercial Realty Corp, ACR, Eagle Point Credit Management, Preferred Stock, Stock Sale, 10% Owner