ACRES Commercial Realty Corp. Declares Quarterly Cash Dividends for its Preferred Stock

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ACRES Commercial Realty Corp. (NYSE: ACR) Declares Cash Dividends on Preferred Stock

Financial Analyst

The declaration of cash dividends by ACRES Commercial Realty Corp. on its Preferred Stock is a pivotal event for shareholders, particularly those holding Series C and Series D Preferred Stock. The specific rates of 8.625% for Series C and 7.875% for Series D are indicative of the yield investors can expect from holding these securities. These rates are relatively high, suggesting the company is seeking to reward its investors with attractive returns, possibly reflecting a higher risk profile or a strategy to retain and attract investors.

Dividends are a key factor in the total return on investment for shareholders and can signal a company's financial health and profitability. In the short-term, dividend payments often lead to an uptick in share price due to the anticipated cash flow to investors. In the long-term, consistent and potentially growing dividends can contribute to a positive reputation among investors, potentially leading to increased demand for the shares.

However, it is crucial to monitor the company's ability to sustain such dividend payouts without compromising its financial stability. A high dividend yield can sometimes be unsustainable and may lead to future cuts if the company's earnings do not support the payouts. Investors often look at the payout ratio, which is the proportion of earnings paid out as dividends, to assess sustainability.

Industry Analyst

Within the commercial realty sector, dividend payouts are a common practice used to distribute profits back to investors. The rates declared by ACRES Commercial Realty Corp. are competitive and could be seen as an attempt to stand out in a crowded market. It is also a reflection of the company's capital allocation strategy, which prioritizes returning capital to shareholders over reinvesting it back into the company or saving for future opportunities.

Investors often compare the dividend yields of companies within the same industry to gauge relative attractiveness. A company offering higher yields may be perceived as a better income investment. However, it is important to consider the company’s debt levels and operational performance, as these can affect future dividend sustainability. A balance sheet heavily weighted with debt might constrain the company’s ability to maintain dividend payments if revenue or profit margins decline.

It is also worth noting that preferred stock dividends are typically paid out before common stock dividends, which provides an additional layer of security for preferred shareholders, but also implies a commitment that the company must honor before any potential common stock dividend increases or share repurchase programs.

UNIONDALE, N.Y., Dec. 21, 2023 /PRNewswire/ -- ACRES Commercial Realty Corp. (NYSE: ACR) (the "Company") announced today that its Board of Directors declared cash dividends on its Preferred Stock.

The Company will pay a cash dividend on its 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock in the amount of $0.5390625 per share. The dividend will be paid on January 30, 2024, to holders of record on January 2, 2024.

The Company will also pay a cash dividend on its 7.875% Series D Cumulative Redeemable Preferred Stock in the amount of $0.4921875 per share. The dividend will be payable on January 30, 2024, to holders of record on January 2, 2024.

About ACRES Commercial Realty Corp.

ACRES Commercial Realty Corp. is a real estate investment trust that is primarily focused on originating, holding and managing commercial real estate ("CRE") mortgage loans and equity investments in commercial real estate property through direct ownership and joint ventures. The Company is externally managed by ACRES Capital, LLC, a subsidiary of ACRES Capital Corp., a private commercial real estate lender exclusively dedicated to nationwide middle market CRE lending with a focus on multifamily, student housing, hospitality, industrial and office property in top U.S. markets. For more information, please visit the Company's website at www.acresreit.com or contact investor relations at IR@acresreit.com.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "trend," "will," "continue," "expect," "intend," "anticipate," "estimate," "believe," "look forward" or other similar words or terms. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. Factors that can affect future results are discussed in the documents filed by the Company from time to time with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statement to reflect new or changing information or events after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

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SOURCE ACRES Commercial Realty Corp.

What is the latest announcement from ACRES Commercial Realty Corp. (NYSE: ACR)?

ACRES Commercial Realty Corp. (NYSE: ACR) has declared cash dividends on its Preferred Stock, with a dividend payment on its 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock and its 7.875% Series D Cumulative Redeemable Preferred Stock.

When will the cash dividends be paid by ACRES Commercial Realty Corp. (NYSE: ACR)?

The cash dividends will be paid on January 30, 2024, to holders of record on January 2, 2024.

What is the amount of cash dividends declared by ACRES Commercial Realty Corp. (NYSE: ACR)?

The cash dividend on its 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock is $0.5390625 per share, and the cash dividend on its 7.875% Series D Cumulative Redeemable Preferred Stock is $0.4921875 per share.