ACRES Commercial Realty Corp. (ACR, Financial) has revealed that its board of directors has sanctioned an extension of its current share buyback initiative. The company plans to repurchase an extra $10 million worth of its common and preferred stock. This move underscores ACRES' commitment to enhancing shareholder value by reducing the number of outstanding shares.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for ACRES Commercial Realty Corp (ACR, Financial) is $22.00 with a high estimate of $22.00 and a low estimate of $22.00. The average target implies an upside of 13.81% from the current price of $19.33. More detailed estimate data can be found on the ACRES Commercial Realty Corp (ACR) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, ACRES Commercial Realty Corp's (ACR, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for ACRES Commercial Realty Corp (ACR, Financial) in one year is $12.72, suggesting a downside of 34.2% from the current price of $19.33. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the ACRES Commercial Realty Corp (ACR) Summary page.
ACR Key Business Developments
Release Date: March 06, 2025
- Loan Payoffs: $107.5 million during the period.
- New Loan Commitment: $47.9 million with an unfunded commitment of $28.4 million.
- Net Reduction of Loan Portfolio: $81.8 million.
- Commercial Real Estate Loan Portfolio: $1.5 billion across 53 investments.
- Weighted Average Spread: 3.73% over one-month term SOFR rates.
- Weighted Average Risk Rating: Increased to 2.9% from 2.7% at September 30.
- GAAP Net Income: $4.1 million or $0.52 per share diluted.
- Net Interest Income: $8.6 million.
- Net Loss on Real Estate Operations: $2.3 million.
- Gain from Real Estate Sale: $7.5 million or $0.95 per share.
- Decrease in CECL Reserves: $1.2 million or $0.15 per share.
- Total Allowance for Credit Losses: $32.8 million, representing 2.2% of the loan portfolio.
- Earnings Available for Distribution (EAD): $0.48 per share, up from $0.24 per share in Q3.
- GAAP Book Value Per Share: $28.87 as of December 31.
- Share Repurchase: $2.5 million used to repurchase 155,000 common shares.
- Available Liquidity: $76.9 million, including $56.7 million of unrestricted cash.
- GAAP Debt to Equity Leverage Ratio: Decreased to 3 times from 3.3 times.
- Net Operating Loss Carry Forward: $32.1 million or approximately $4.31 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ACRES Commercial Realty Corp (ACR, Financial) reported a GAAP net income of $4.1 million or $0.52 per share diluted for the fourth quarter.
- The company successfully sold an office property in Pennsylvania for a gain of $7.5 million.
- Pre-leasing for student housing at Florida State University is tracking well ahead of the current year, with one asset seeing double-digit rent growth.
- ACR's GAAP book value per share increased to $28.87 from $27.92 in the previous quarter.
- The company has a strong liquidity position with $76.9 million available at the end of the quarter.
Negative Points
- Loan payoffs resulted in a net reduction of the loan portfolio by $81.8 million.
- The weighted average risk rating of the portfolio increased to 2.9% from 2.7% in the previous quarter.
- A loan on an underperforming hotel in Orlando was sold at 94% of its basis, resulting in a charge off to EAD of $700,000.
- The leverage profile declined to 77%, and the company plans to refinance assets, which may incur additional charges.
- There are anticipated one-time charge events in the first quarter of 2025 as the company transacts on some assets and refinances de-levered CLOs.
