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

Eagle Point Credit Management and Eagle Point DIF GP I reported pre-planned sales of ACRES Commercial Realty Corp. 8.625% Series C Preferred Stock.

Summary

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, identified as 10% owners of ACRES Commercial Realty Corp. (ACR), reported sales of preferred stock.
• The transactions involved the disposition of 8.625% Series C Preferred Stock on February 24, 25, and 26, 2026.
• A total of 3,701 shares of 8.625% Series C Preferred Stock were sold across these dates.
• The sales prices ranged from $25.25 to $25.28 per share, with prices reflecting weighted averages for multiple transactions.
• Following these reported transactions, the reporting persons indirectly beneficially own 351,347 shares of 8.625% Series C Preferred Stock, 745,819 shares of 7.875% Series D Preferred Stock, and 1,177,060 shares of Common Stock.
• The reporting persons explicitly disclaim beneficial ownership of the securities reported.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, as the sales were conducted under a pre-arranged 10b5-1 plan, suggesting a systematic liquidation rather than a reaction to specific negative news. The future dating of the transactions is unusual but does not inherently change the neutral sentiment of a planned sale.

Positives

• The reported transactions were made pursuant to a Rule 10b5-1(c) plan, indicating pre-scheduled sales rather than a reaction to new, non-public information.

Negatives

• Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, a 10% owner, reduced their indirect beneficial ownership of ACRES Commercial Realty Corp.'s 8.625% Series C Preferred Stock by 3,701 shares.

Future Outlook

The filing does not provide any forward-looking statements or guidance regarding the company's future performance or strategic direction, focusing solely on insider transactions.

Management Comments

• Courtney Fandrick, Chief Compliance Officer of Eagle Point Credit Management LLC, signed the filing on 02/26/2026.
• Courtney Fandrick, Authorized Person of Eagle Point DIF GP I LLC, signed the filing on 02/26/2026.

Industry Context

StockSavvy.ai notes that insider sales, even when conducted under a Rule 10b5-1 plan, are routinely monitored by investors for potential signals regarding management's perception of future company performance or valuation. For real estate investment trusts (REITs) like ACRES Commercial Realty Corp., insider activity can sometimes be interpreted in the context of broader real estate market trends or specific asset performance, though this filing provides no such context.

Stakeholder Impact

• Shareholders may view the reduction in ownership by a 10% owner as a minor negative, although the pre-planned nature of the sales under a 10b5-1 plan mitigates concerns about immediate adverse implications.

Key Dates

Recommendation

The reported sales by a 10% owner, while significant in volume, are scheduled for future dates and were conducted under a pre-arranged 10b5-1 plan. This suggests a systematic portfolio adjustment rather than a reaction to new, adverse information about ACRES Commercial Realty Corp. Investors should monitor future filings and company performance for more definitive signals, but this specific transaction does not warrant an immediate change in investment thesis.

Keywords

SEC Form 4, insider trading, beneficial ownership, ACRES Commercial Realty Corp., ACR, Eagle Point Credit Management, preferred stock, stock sale, 10b5-1 plan