ACRES Commercial Realty (ACR) AI Stock Analysis

• Market Cap: $150.38M
• Dividend Yield: N/A
• Average Volume (3M): 17.75K
• Price to Earnings (P/E): 66.0
• Beta (1Y): 0.41
• Revenue Growth: -16.01%
• EPS Growth: -98.23%
• Country: US
• Employees: 4
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Mortgage
• EPS (TTM): 0.04
• Shares Outstanding: 7,426,314
• 10 Day Avg. Volume: 18,079
• 30 Day Avg. Volume: 17,749
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 9.64
• Enterprise Value/Revenue: 11.39
• Enterprise Value/Gross Profit: 18.49
• Enterprise Value/Ebitda: 17.89
• 1Y Price Target: $22.50
• Price Target Upside: 9.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 59 Neutral
• Price Target: $21.50 ▲(4.72% Upside)

ACRES Commercial Realty's overall stock score reflects a mixed financial performance with strong revenue growth but concerns over cash flow variability and valuation. The technical analysis indicates potential short-term bearish momentum, while the earnings call highlights both strategic improvements and significant risks. The absence of a dividend yield and negative P/E ratio further weigh on the stock's attractiveness.

Positive Factors

Revenue Growth

The consistent revenue growth over several years indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Balance Sheet Health

A zero-debt position strengthens the balance sheet, providing greater financial flexibility and reducing risk, which is crucial for sustainable growth.

Loan Portfolio Expansion

Expanding the loan portfolio supports revenue growth and market presence, indicating effective capital deployment and strategic expansion in the commercial real estate sector.

Negative Factors

GAAP Net Loss

A GAAP net loss reflects challenges in profitability, which could impact investor confidence and necessitate cost management improvements for future profitability.

Book Value Decline

A decline in book value per share suggests potential issues in asset valuation or profitability, which could affect shareholder equity and long-term value creation.

Increased Risky Loans

An increase in higher-risk loans raises concerns about credit quality and potential defaults, which could impact financial stability and future earnings.

ACRES Commercial Realty Business Overview & Revenue Model

Company Description

ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and other commercial real estate-related debt investments in the United States. It invests in commercial real estate-related assets, including floating and fixed rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine debt, preferred equity investments, commercial mortgage-backed securities, and commercial real estate equity and preferred equity investments. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income. The company was formerly known as Exantas Capital Corp. and changed its name to ACRES Commercial Realty Corp. in February 2021. ACRES Commercial Realty Corp. was incorporated in 2005 and is based in Uniondale, New York.

How the Company Makes Money

ACR generates revenue through multiple streams including leasing commissions from tenant agreements, property management fees, and consulting services for real estate investments. The company also profits from the appreciation of its real estate assets and the sale of properties in its portfolio. Strategic partnerships with financial institutions and investment funds further enhance its revenue potential, allowing ACR to leverage external capital for larger projects and increase its overall profitability.

ACRES Commercial Realty Financial Statement Overview

Summary

ACRES Commercial Realty has shown strong revenue growth and improved net profit margins, reflecting effective management. However, there is variability in cash flow and historical equity fluctuations, indicating a need for careful financial planning.

Income Statement

ACRES Commercial Realty has demonstrated consistent revenue growth over the years, with a noticeable increase from $19.5 million in 2020 to $83.5 million in 2024. The gross profit margin has remained stable, showcasing efficient operational management. However, there is fluctuation in EBIT and EBITDA margins, with significant negative EBIT in 2020 impacting historical averages. The net profit margin has improved in recent years, indicating better cost control and profitability.

Balance Sheet

The company's debt-to-equity ratio has significantly improved due to the reduction of total debt to zero in 2024, enhancing financial stability. The equity ratio remains strong, reflecting a solid capital structure. However, the fluctuations in stockholders’ equity over the years suggest some instability in value retention. The return on equity (ROE) has improved with positive net income in recent periods, highlighting effective use of equity to generate profits.

Cash Flow

ACRES Commercial Realty's operating cash flow has shown variability, though it remains positive, which is crucial for maintaining operational liquidity. The free cash flow experienced volatility, which can impact future growth investments. The recent decrease in operating cash flow to net income ratio suggests growing efficiency challenges. The company has managed significant financing activities, indicating effective capital management but also potential future cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	127.38M	83.49M	91.13M	70.00M	44.86M	19.49M
Gross Profit	78.43M	36.59M	52.22M	36.15M	38.68M	19.19M
EBITDA	81.06M	126.15M	149.96M	88.44M	0.00	-136.79M
Net Income	21.59M	29.27M	22.39M	10.62M	33.92M	-197.71M
Balance Sheet
Total Assets	1.82B	1.88B	2.20B	2.38B	2.28B	1.65B
Cash, Cash Equivalents and Short-Term Investments	44.85M	56.71M	83.45M	67.78M	35.50M	31.43M
Total Debt	1.35B	1.41B	1.72B	1.91B	1.82B	1.31B
Total Liabilities	1.38B	1.43B	1.75B	1.94B	1.84B	1.32B
Stockholders Equity	425.28M	439.13M	435.80M	435.47M	448.19M	334.38M
Cash Flow
Free Cash Flow	16.27M	19.38M	45.61M	31.96M	40.53M	31.80M
Operating Cash Flow	16.38M	19.39M	45.61M	32.70M	40.59M	31.81M
Investing Cash Flow	251.03M	299.07M	161.31M	-232.55M	-390.50M	244.89M
Financing Cash Flow	-314.15M	-352.74M	-219.85M	20.74M	566.10M	-303.40M

ACRES Commercial Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.53
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACR, the sentiment is Positive. The current price of 20.53 is below the 20-day moving average (MA) of 20.83, below the 50-day MA of 20.61, and above the 200-day MA of 19.20, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 46.89 is Neutral, neither overbought nor oversold. The STOCH value of 20.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACR.

ACRES Commercial Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEVN	66 Neutral	$149.03M	9.49	5.71%	13.25%	-16.74%	-32.89%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
LFT	62 Neutral	$92.12M	9.69	6.01%	19.89%	-24.12%	-47.91%
ACR	59 Neutral	$150.38M	66.03	5.05%	―	-16.01%	-98.23%
AOMR	53 Neutral	$213.89M	5.82	14.91%	14.22%	75.08%	-21.03%
CHMI	49 Neutral	$83.26M	43.78	-2.56%	24.02%	-2.02%	-20.61%
GPMT	49 Neutral	$127.97M	―	-14.12%	7.35%	-29.55%	42.09%

ACRES Commercial Realty Corporate Events

ACRES Commercial Realty Reports Q2 2025 Net Loss

On July 30, 2025, ACRES Commercial Realty Corp. reported a GAAP net loss of $732,000 for the second quarter of 2025, equating to a loss of $0.10 per share-diluted. Despite the loss, the company is actively developing a pipeline of new loan opportunities and plans to grow its portfolio by investing in high-quality properties nationwide during the second half of the year. This strategic focus aims to enhance asset management and ensure successful payoffs, which could potentially improve the company’s financial performance and market positioning.

ACRES Commercial Realty Holds 2025 Annual Stockholders Meeting

On June 5, 2025, ACRES Commercial Realty Corp. held its 2025 Annual Meeting of Stockholders where nine directors were elected to serve until the next annual meeting in 2026. Additionally, stockholders approved the compensation of the company’s named executive officers and ratified Ernst & Young LLP as the independent registered public accounting firm for the year ending December 31, 2025.