Eagle Point Sells Series C Preferred Shares in ACRES Commercial Realty Amid Strategic Positioning

Eagle Point maintains holdings in other preferred and common shares.

October 28, 2024

Strategic Reduction in ACRES Series C Preferred Stock

Eagle Point Credit Management LLC and its affiliate Eagle Point DIF GP I LLC recently reported a sale of Series C Preferred Stock in ACRES Commercial Realty Corp, marking a notable adjustment in their portfolio. According to a regulatory update submitted on October 23, 2024, the firms divested 100 shares of ACRES' 8.625% Series C Preferred Stock at a per-share price of $24.89. This sale appears to be a part of Eagle Point's broader approach to portfolio management, as they retain sizable investments in other ACRES securities, including Series D Preferred and Common Stock.

Portfolio Rebalancing Reflects Strategic Market Moves

The selective sale from Eagle Point’s holdings in Series C Preferred Stock may indicate strategic positioning within ACRES Commercial Realty's diverse asset portfolio. Retaining its primary investments in Series D Preferred and Common Stock, Eagle Point shows a measured approach to managing its stake in the company. This move could serve multiple strategic purposes, from liquidity adjustments to shifts aligning with Eagle Point’s broader market objectives. By fine-tuning its exposure, Eagle Point continues to benefit from potential growth in ACRES while rebalancing its portfolio.

Long-Term Commitment with Adjusted Focus

Eagle Point's decision to hold its larger positions in Series D and common shares underscores its commitment to ACRES while allowing for tactical shifts in response to market conditions. This approach indicates that Eagle Point aims to maintain significant influence over ACRES' long-term growth strategy, retaining equity in the firm while managing liquidity through targeted asset adjustments. Given ACRES’ focus on commercial real estate and associated financial products, Eagle Point's ongoing involvement in the company positions it to leverage potential growth in a sector experiencing dynamic shifts.

Broader Market Implications

Investors and market analysts view these movements as signals of Eagle Point's broader strategic priorities, particularly within the commercial real estate sector, which faces unique challenges and opportunities. By retaining substantial holdings in ACRES' preferred and common shares, Eagle Point demonstrates confidence in ACRES' potential, albeit with a tactical reduction in Series C holdings to balance market exposure.