Form 4: Eagle Point Sells ACRES Commercial Realty Preferred Stock

Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, 10% owners of ACRES Commercial Realty Corp., reported sales of 7.875% Series D Preferred Stock.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both 10% owners of ACRES Commercial Realty Corp. (ACR), reported transactions.
• On December 23, 2025, 499 shares of 7.875% Series D Preferred Stock were sold at a price of $22.26 per share.
• On December 24, 2025, an additional 455 shares of 7.875% Series D Preferred Stock were sold at a price of $22.30 per share.
• Following these transactions, the reporting persons beneficially own 760,391 shares of 7.875% Series D Preferred Stock.
• The reporting persons also indirectly beneficially own 1,177,060 shares of Common Stock and 381,511 shares of 8.625% Series C Preferred Stock.
• The securities are indirectly held by private investment funds and accounts managed by Eagle Point Credit Management LLC, with Eagle Point DIF GP I LLC serving as general partner to certain accounts.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the insider selling of preferred stock, which can be perceived as a lack of confidence or a move to reduce exposure, despite the disclaimer of beneficial ownership. However, it is a routine disclosure and not indicative of operational performance.

Negatives

• The sale of 954 shares of 7.875% Series D Preferred Stock by a 10% owner could be interpreted by the market as a negative signal regarding the company's outlook or the reporting person's confidence.

Risks

• Market perception risk: Insider selling, even for portfolio rebalancing, can be viewed negatively by investors, potentially leading to downward pressure on the issuer's stock price.
• Liquidity risk: The sale of preferred stock by a significant owner might raise questions about the reporting person's liquidity needs or investment strategy.

Future Outlook

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

Management Comments

• The reporting persons disclaim 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 for purposes of Section 16 or for any other purpose.

Industry Context

Form 4 filings are standard disclosures required by the SEC for insiders (officers, directors, and 10% owners) to report changes in their beneficial ownership of a company's securities. These filings provide transparency into insider trading activities, which can sometimes be interpreted by the market as signals about the company's future prospects. In the real estate investment trust (REIT) sector, insider transactions are closely watched for insights into management's confidence in the underlying property portfolio and financial health.

Related Party Transactions

• The securities are directly held 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 certain Applicable Accounts. This represents an indirect beneficial ownership structure.

Stakeholder Impact

• Shareholders: May interpret the insider sale as a negative signal, potentially influencing their investment decisions.
• Investors: Will note the change in beneficial ownership by a significant holder, which could factor into their valuation models and risk assessments.

Key Dates

Keywords

ACRES Commercial Realty Corp, ACR, Eagle Point Credit Management, Eagle Point DIF GP I, Form 4, Insider Trading, Preferred Stock, Beneficial Ownership, SEC Filing, Real Estate Investment Trust