Form 4: Eagle Point Sells ACRES Preferred Stock Under 10b5-1 Plan

Eagle Point Credit Management and Eagle Point DIF GP I reported pre-scheduled sales of ACRES Commercial Realty Corp. 7.875% Series D Preferred Stock totaling 3,188 shares.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both identified as 10% owners of ACRES Commercial Realty Corp. (ACR), reported sales of 7.875% Series D Preferred Stock.
• The transactions occurred on September 4, 2025, September 5, 2025, and September 8, 2025.
• A total of 3,188 shares of 7.875% Series D Preferred Stock were disposed of across these three dates.
• The shares were sold at prices ranging from $22.35 to $22.43 per share.
• Following these transactions, the reporting persons indirectly beneficially own 791,797 shares of 7.875% Series D Preferred Stock, 1,177,060 shares of Common Stock, and 393,646 shares of 8.625% Series C Preferred Stock.
• The sales were executed pursuant to a Rule 10b5-1(c) plan, indicating pre-scheduled transactions.
• The reporting persons disclaim beneficial ownership of the securities described in this report.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While sales by a 10% owner could be seen negatively, the explicit mention of a Rule 10b5-1(c) plan indicates these were pre-scheduled transactions, mitigating any immediate negative implications about the company's current prospects.

Positives

• The sales were conducted under a Rule 10b5-1(c) plan, which indicates pre-scheduled transactions rather than a reactive sale based on new, negative information about the company.

Negatives

• A 10% owner reducing their stake, even through a pre-planned sale, can sometimes be perceived as a slight negative signal by the market.

Risks

• No specific risks to ACRES Commercial Realty Corp. are directly mentioned in this Form 4 filing.

Future Outlook

This filing, a Form 4, does not provide any forward-looking statements or guidance regarding ACRES Commercial Realty Corp.'s future performance or strategic direction.

Management Comments

• Courtney Fandrick, Chief Compliance Officer of Eagle Point Credit Management LLC, signed the report on 09/08/2025.
• Courtney Fandrick, Authorized Person of Eagle Point DIF GP I LLC, signed the report on 09/08/2025.

Industry Context

This Form 4 filing details insider transactions by a significant owner in a commercial realty corporation. Such filings are routine disclosures of changes in beneficial ownership and do not typically reflect broader industry trends, though they provide transparency into the investment activities of major stakeholders.

Comparison to Industry Standards

• This filing is a standard disclosure of insider trading activity as required by SEC regulations for 10% owners. It does not contain information that allows for a direct comparison of ACRES Commercial Realty Corp.'s operational or financial results against industry benchmarks or competitors.

Related Party Transactions

• The sales of 7.875% Series D Preferred Stock by Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both 10% owners of ACRES Commercial Realty Corp., constitute related party transactions.

Stakeholder Impact

• Shareholders might observe a reduction in a significant owner's stake, which could lead to minor concerns, although the pre-planned nature of the sales under a 10b5-1 plan generally lessens the perceived negative impact.

Next Steps

• No specific future actions, events, or milestones for ACRES Commercial Realty Corp. are mentioned in this Form 4 filing.

Key Dates

Recommendation

The filing reports pre-scheduled sales of preferred stock by a 10% owner under a Rule 10b5-1 plan. These transactions are generally not indicative of a change in the insider's view of the company's prospects, but rather a pre-arranged liquidity event. Therefore, it does not provide a strong signal for a buy or sell recommendation, suggesting a 'hold' position for existing investors.

Keywords

ACRES Commercial Realty Corp, ACR, Eagle Point Credit Management, Eagle Point DIF GP I, Form 4, Insider Trading, Preferred Stock, Beneficial Ownership, 10b5-1 Plan