ACRES COMMERCIAL REALTY CORP. REPORTS RESULTS FOR FIRST QUARTER 2025

Rhea-AI Summary

ACRES Commercial Realty (NYSE: ACR) reported its Q1 2025 financial results, posting a GAAP net loss of $5.9 million, or $(0.80) per share-diluted. The real estate investment trust, which focuses on commercial real estate mortgage loans and equity investments, made strategic moves during the quarter.

CEO Mark Fogel highlighted two key developments:

• Implementation of a new financing facility to manage balance sheet liabilities
• Ongoing efforts to source and underwrite high-quality loans for portfolio expansion

The company will discuss these results in detail during a conference call scheduled for May 1, 2025, at 10:00 a.m. Eastern Time. Investors can access the call through the provided domestic and international dial-in numbers, with a replay available until May 15, 2025. Full quarterly results are available on the company's website.

Positive

• Secured new financing facility to manage balance sheet liabilities
• Active sourcing and underwriting of high-quality loans for portfolio growth

Negative

• Net loss of $5.9 million in Q1 2025
• Loss per share of $0.80 in Q1 2025

Insights

Financial Analyst

ACRES Commercial reports $5.9M Q1 net loss with new financing facility amid continued portfolio management efforts.

ACRES Commercial Realty Corp (NYSE: ACR) reported a GAAP net loss of $5.9 million or $(0.80) per share-diluted for Q1 2025. This significant loss comes as the company continues its focus on commercial real estate mortgage loans and equity investments.

The press release lacks comparative figures from previous periods, making it difficult to assess whether this represents a deterioration or improvement in performance. CEO Mark Fogel highlighted two key operational developments: the closing of a new financing facility aimed at improving balance sheet management, and ongoing efforts to source high-quality loans while "aggressively managing" existing investments.

The language around "aggressive" management of investments may signal challenges within the existing portfolio requiring heightened attention. However, without specific metrics on loan performance, portfolio quality, or non-performing assets, it's impossible to determine the precise nature of these challenges.

For a REIT focused on commercial real estate lending, a quarterly loss of this magnitude warrants attention. The press release notably lacks discussion of dividend plans, liquidity position, or specific strategies to return to profitability, providing limited transparency for stakeholders trying to assess the company's financial trajectory.

UNIONDALE, N.Y., April 30, 2025 /PRNewswire/ -- ACRES Commercial Realty Corp. (NYSE: ACR) ("ACR" or the "Company"), a real estate investment trust that is primarily focused on originating, holding and managing commercial real estate mortgage loans and equity investments in commercial real estate property through direct ownership and joint ventures, today reported results for the quarter ended March 31, 2025. ACR's GAAP net loss allocable to common shares was $5.9 million or $(0.80) per share-diluted, for the quarter ended March 31, 2025.

"We remain confident in our ability to preserve and create value for our shareholders. During the quarter, we closed on a new financing facility to efficiently manage the liability side of our balance sheet," said Mark Fogel, President and Chief Executive Officer of ACRES Commercial Realty Corp. "In addition, the team has been sourcing and underwriting high-quality loans to add to the portfolio, while continuing to aggressively manage our investments."

ACR issued a full, detailed presentation of its results for the quarter ended March 31, 2025 that can be viewed at www.acresreit.com.

Earnings Call Details

ACR will host a live conference call on May 1, 2025 at 10:00 a.m. Eastern Time to discuss its first quarter 2025 operating results. The conference call can be accessed by dialing 1-800-267-6316 (U.S. domestic) or 1-203-518-9783 (International), Conference ID ACRES or from the investor relations section  of the Company's website at www.acresreit.com.

For those unable to listen to the live conference call, a replay will be available on the Company's website and telephonically through May 15, 2025 by dialing 1-844-512-2921 (U.S. domestic) or 1-412-317-6671 (International), with the passcode 11158543.

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 mortgage loans and equity investments in commercial real estate properties 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 commercial real estate 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," "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, including, without limitation, factors impacting whether we will be able to maintain our sources of liquidity and whether we will be able to identify sufficient suitable investments to increase our originations. 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.

FAQ

What was ACRES Commercial Realty (ACR) earnings per share in Q1 2025?

ACRES Commercial Realty reported a GAAP net loss of $(0.80) per share-diluted for Q1 2025.

How much net loss did ACRES Commercial Realty (ACR) report for Q1 2025?

ACR reported a GAAP net loss of $5.9 million for the quarter ended March 31, 2025.

What new developments did ACRES Commercial Realty (ACR) announce in Q1 2025?

ACR announced the closing of a new financing facility to manage their balance sheet liabilities more efficiently during Q1 2025.

When is ACRES Commercial Realty (ACR) Q1 2025 earnings call?

ACR's Q1 2025 earnings call is scheduled for May 1, 2025, at 10:00 a.m. Eastern Time.

How can investors access ACRES Commercial Realty (ACR) Q1 2025 earnings call?

Investors can access the call by dialing 1-800-267-6316 (U.S.) or 1-203-518-9783 (International) with Conference ID ACRES, or through ACR's website at www.acresreit.com.

What is ACRES Commercial Realty's (ACR) current business strategy for 2025?

ACR is focusing on sourcing and underwriting high-quality loans to add to their portfolio while aggressively managing existing investments.