Form 4: Eagle Point Reduces ACRES Preferred Stock Stake

Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC reported sales of ACRES Commercial Realty Corp. 7.875% Series D Preferred Stock.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both 10% owners and directors of ACRES Commercial Realty Corp. (ACR), reported transactions in the company's securities.
• On September 22, 2025, 126 shares of 7.875% Series D Preferred Stock were sold at a price of $22.63 per share.
• On September 24, 2025, an additional 100 shares of 7.875% Series D Preferred Stock were sold at a price of $22.60 per share.
• Following these transactions, the reporting persons beneficially own 773,984 shares of 7.875% Series D Preferred Stock.
• The reporting persons also 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 indirectly by certain 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 some of these accounts.
• Both reporting persons disclaim beneficial ownership of the reported securities for Section 16 purposes, despite potentially having an 'indirect pecuniary interest'.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the insider sales of preferred stock by a significant shareholder and director. While the amounts are relatively small compared to total holdings, insider selling can be interpreted as a lack of confidence or a strategic divestment, which typically carries a negative connotation for investors.

Negatives

• A 10% owner and director entity, Eagle Point Credit Management LLC, sold shares of ACRES Commercial Realty Corp. preferred stock, which can be interpreted as a negative signal by the market.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future performance or outlook.

Industry Context

This filing reports routine insider transactions and does not provide broader industry context or trends. It reflects specific ownership changes by a significant shareholder in ACRES Commercial Realty Corp.

Stakeholder Impact

• Shareholders may interpret the sales by a 10% owner and director as a potential signal of reduced confidence in the company's near-term prospects, which could influence investment decisions.

Key Dates

Recommendation

While the sales by a 10% owner and director are a negative signal, the quantities sold are relatively small compared to the total beneficial ownership. This suggests a minor portfolio adjustment rather than a significant loss of confidence. Investors should monitor future insider activity and broader company performance before making a definitive buy or sell decision, thus a 'hold' recommendation is appropriate.

Keywords

ACRES Commercial Realty Corp., ACR, Eagle Point Credit Management, Eagle Point DIF GP I, Form 4, Insider Transaction, Preferred Stock, Common Stock, Beneficial Ownership