Form 4: Eagle Point Sells ACR Preferred Stock

Eagle Point Credit Management LLC reported the sale of 723 shares of ACRES Commercial Realty Corp.'s 8.625% Series C Preferred Stock at a weighted average price of $25.19 per share.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both 10% owners of ACRES Commercial Realty Corp. (ACR), reported a transaction.
• On November 24, 2025, 723 shares of ACR's 8.625% Series C Preferred Stock were sold.
• The shares were sold at a weighted average price of $25.19, with individual transactions ranging from $25.18 to $25.20 per share.
• Following the transaction, Eagle Point Credit Management LLC indirectly beneficially owns 763,436 shares of 7.875% Series D Preferred Stock, 1,177,060 shares of Common Stock, and 388,376 shares of 8.625% Series C Preferred Stock.
• The reporting persons disclaim beneficial ownership of the securities reported.

Sentiment

Score: 4

Explanation: The sale of preferred stock by a 10% owner, even if a small amount, is generally viewed as a slightly negative signal, indicating a reduction in exposure. However, the disclaimer of beneficial ownership and the routine nature of Form 4 filings temper the negative impact.

Positives

• The filing demonstrates transparency in insider transactions as required by SEC regulations.
• The sale volume of 723 shares is relatively small compared to the total holdings of 388,376 shares of the same preferred stock, suggesting it may not be a significant divestment.

Negatives

• A 10% owner, Eagle Point Credit Management LLC, reduced its holdings in ACRES Commercial Realty Corp. preferred stock.
• Insider sales can sometimes be interpreted by the market as a lack of confidence in the company's future prospects, even if the amount is small.

Risks

• Potential negative market perception due to a 10% owner reducing their stake, which could lead to downward pressure on the stock price.
• The disclaimer of beneficial ownership by the reporting persons highlights the complex nature of ownership structures, which could be a minor risk for clarity.

Future Outlook

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

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').
• 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.
• 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 information directly related to broader industry trends or competitive landscape. It reflects a specific investment decision by a significant shareholder.

Related Party Transactions

• The transaction involves Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, which are 10% owners of ACRES Commercial Realty Corp., making this a related party transaction by definition of insider reporting.

Stakeholder Impact

• Shareholders may interpret the sale by a significant owner as a negative signal, potentially leading to a slight decrease in confidence or share price.
• Management would be aware of significant shareholder activity, though the transaction itself does not directly impact their operations.

Next Steps

• The filing does not mention any specific future actions, events, or milestones for ACRES Commercial Realty Corp. or the reporting persons beyond the regulatory reporting requirements.

Key Dates

Recommendation

While the sale by a 10% owner could be perceived negatively, the volume of shares sold (723) is relatively small compared to the total indirect holdings of preferred stock (388,376 shares). This suggests it might be a routine portfolio adjustment rather than a strong bearish signal. Investors should monitor future insider activity and broader company performance before making significant investment decisions, thus a 'hold' recommendation is appropriate.

Keywords

ACRES Commercial Realty Corp., ACR, Eagle Point Credit Management, insider trading, Form 4, preferred stock, beneficial ownership, SEC filing, stock sale