Eagle Point Sheds Holdings in ACRES Commercial Realty

Eagle Point Credit Management adjusts portfolio with sales in ACRES Commercial Realty securities.

November 18, 2024

Portfolio Rebalancing Detailed

Eagle Point Credit Management LLC, along with its affiliate, Eagle Point DIF GP I LLC, has disclosed changes to its ownership in ACRES Commercial Realty Corp. The transactions reflect strategic adjustments in holdings of both preferred and common stock by the reporting entities.

In its filing, Eagle Point revealed divestitures involving Series C and Series D preferred stock. Over the course of two days, the company offloaded more than 8,900 shares of preferred securities, with proceeds aligning closely to market valuations. These adjustments suggest a calculated approach, likely balancing risk and liquidity considerations.

The reported changes extend beyond preferred stock. Eagle Point’s retained ownership of ACRES common stock remained unaffected by these transactions, highlighting selective repositioning rather than a wholesale exit from ACRES' equity.

Ownership Implications

Despite the sales, Eagle Point continues to hold substantial equity, maintaining over a million shares of ACRES common stock. The management firm emphasized that these activities are consistent with fiduciary obligations and portfolio strategies. As of the filing, indirect beneficial ownership structures remain intact, with reporting parties disclaiming ultimate beneficial ownership in adherence to regulatory standards.

Broader Trends in Real Estate Investments

This disclosure underscores a broader theme among institutional investors reevaluating their exposure to real estate assets. The adjustments align with market conditions that have prompted both private and public entities to refine asset allocations. Eagle Point’s actions may signal a cautious but strategic recalibration amid industry headwinds.