Form 4: Eagle Point Sells ACR Preferred Stock

Eagle Point Credit Management LLC, a 10% owner of ACRES Commercial Realty Corp., reported the sale of 1,372 shares of Series D Preferred Stock for $22.26 per share.

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 a sale of preferred stock.
• On December 15, 2025, 1,372 shares of 7.875% Series D Preferred Stock were sold at a price of $22.26 per share.
• The transaction was executed pursuant to a Rule 10b5-1(c) plan, indicating it was a pre-arranged sale.
• Following the transaction, Eagle Point entities indirectly beneficially own 761,345 shares of 7.875% Series D Preferred Stock, 1,177,060 shares of Common Stock, and 381,511 shares of 8.625% Series C Preferred Stock.
• The reporting persons disclaim beneficial ownership of the reported securities for Section 16 purposes.

Sentiment

Score: 5

Explanation: A neutral transaction. The sale was pre-planned under a Rule 10b5-1 plan, which typically indicates a routine portfolio adjustment rather than a reaction to new information. The amount sold is relatively small compared to total holdings.

Future Outlook

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

Industry Context

This filing reports an insider transaction by a significant institutional investor in ACRES Commercial Realty Corp. It reflects a specific portfolio management decision by Eagle Point Credit Management LLC rather than a broader industry trend or company-specific strategic update.

Related Party Transactions

• The sale of 1,372 shares of 7.875% Series D Preferred Stock by Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, who are 10% owners and directors of ACRES Commercial Realty Corp., constitutes a related party transaction.

Stakeholder Impact

• Shareholders: A minor reduction in preferred stock holdings by a significant institutional investor, potentially perceived as a slight negative, but mitigated by the 10b5-1 plan. The overall impact is likely minimal given the small transaction size relative to total holdings.

Key Dates

Recommendation

The filing reports a routine, pre-scheduled sale of a small portion of preferred stock by a 10% owner under a Rule 10b5-1 plan. This type of transaction is generally not indicative of a change in the company's fundamental outlook or a strong signal for future performance. Given the nature and size of the transaction, it does not warrant a change in investment thesis, thus a 'hold' recommendation is appropriate.

Keywords

ACRES Commercial Realty Corp., ACR, Eagle Point Credit Management, Eagle Point DIF GP I LLC, Form 4, Insider Sale, Preferred Stock, Beneficial Ownership, Rule 10b5-1, SEC Filing