Eagle Point Divests Preferred Stock in ACRES Commercial Realty

Eagle Point Credit Management adjusts its portfolio with strategic divestment of preferred securities.

November 26, 2024

Asset Manager Reduces Stake in ACRES Commercial Realty

Eagle Point Credit Management LLC reported a notable shift in its holdings with the sale of over 1,600 shares of 8.625% Series C Preferred Stock in ACRES Commercial Realty Corp. The transaction, executed on November 21, 2024, reflects the firm's ongoing strategic evaluation of its investments in financial securities.

Following this sale, Eagle Point holds approximately 471,793 shares of the same stock through indirect ownership. The transaction price averaged $25.11 per share, consistent with market trends in preferred equity securities for similar real estate investment trusts.

The filing also indicates Eagle Point's continued significant presence in ACRES, with 909,783 shares of 7.875% Series D Preferred Stock and over 1.1 million shares of common stock still under management. These positions underline Eagle Point’s broader engagement with high-yield investment strategies.

Structured Ownership and Portfolio Dynamics

The divestiture was facilitated under indirect ownership by accounts managed by Eagle Point Credit Management LLC and its affiliate, Eagle Point DIF GP I LLC. Both entities operate as part of a complex network of financial vehicles designed for strategic investment.

By maintaining diversified exposure across preferred and common stock, Eagle Point balances its risk and return, leveraging the stable cash flows typical of preferred securities while retaining upside potential through common equity.