ACR Form 4: Eagle Point-managed funds trim Series D preferred stake
Rhea-AI Filing Summary
Eagle Point Credit Management LLC reported insider sales of ACRES Commercial Realty Corp. securities on behalf of private funds and accounts it manages. The filing discloses multiple sales of 7.875% Series D preferred stock on 09/12/2025, 09/15/2025 and 09/16/2025 totaling 10,761 shares sold at a weighted average price of $22.57 per share. Following these transactions the reporting person continued to show indirect beneficial ownership of approximately 776,433 shares of Series D preferred. The filing also reports indirect ownership of 1,177,060 shares of common stock and 393,646 shares of 8.625% Series C preferred stock, held by applicable accounts managed by Eagle Point. Footnotes state the securities are held by private funds/accounts and disclaim direct beneficial ownership.
Positive
- Continued substantial indirect holdings in ACRES across common stock and two series of preferred stock indicate ongoing exposure by Eagle Point-managed funds
- Detailed disclosure including weighted average price range and footnotes clarifying indirect holdings improves transparency
Negative
- Net reduction in 7.875% Series D preferred holdings via sales totaling 10,761 shares on 09/12–09/16/2025
- Sales may reduce preferred-share voting/financial exposure held indirectly by the reporting accounts
Insights
TL;DR: The report discloses routine portfolio sales by the manager with continued significant indirect holdings across preferred and common shares.
The Form 4 shows multiple small block sales of the issuer's 7.875% Series D preferred stock executed over three days for a total of 10,761 shares at a weighted average price of $22.57. The reporting entity, Eagle Point Credit Management LLC, manages the Applicable Accounts that directly hold the securities; it asserts an indirect pecuniary interest and disclaims beneficial ownership under Rule 16a-1(a)(4). Material ownership remains: ~776,433 Series D preferred shares, 393,646 Series C preferred shares and 1,177,060 common shares held indirectly. From an investor-impact perspective these are manager-level portfolio rebalancing trades rather than insider signals of corporate action; the persistence of sizeable indirect positions suggests continued exposure by Eagle Point-managed funds.
TL;DR: Disclosure is standard and compliant; footnotes clarify indirect holdings and disclaimers, limiting governance implications.
The filing includes required explanatory footnotes noting that the securities are directly held by private funds/accounts managed by Eagle Point and that the filer disclaims beneficial ownership for Section 16 purposes. Transactions are marked with code 'S' (sale) and the price footnote explains multiple trade prices within a narrow range ($22.55–$22.60). There is no indication of a change in control or a new contractual plan such as a 10b5-1 arrangement. Governance impact is minimal beyond routine portfolio management disclosures, but the continued significant indirect holdings mean the reporting entity retains economic interest in the issuer.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | 7.875% Series D Preferred Stock | 10,062 | $22.57 | $227K |
| Sale | 7.875% Series D Preferred Stock | 389 | $22.57 | $9K |
| Sale | 7.875% Series D Preferred Stock | 310 | $22.57 | $7K |
| holding | Common Stock, $0.001 par value | -- | -- | -- |
| holding | 8.625% Series C Preferred Stock | -- | -- | -- |
Footnotes (1)
- The securities are directly held by certain private investment funds and/or certain accounts (the "Applicable Accounts") managed by Eagle Point Credit Management LLC ("EPCM"). Eagle Point DIF GP I LLC ("DIF GP") serves as general partner to certain Applicable Accounts. EPCM and DIF GP could be deemed to have an "indirect pecuniary interest" (within the meaning of Rule 16a-1(a)(2)(ii) under the Securities Exchange Act of 1934) in securities reported herein. Each of the Reporting Persons hereby disclaims beneficial ownership of the securities described in this report pursuant to Rule 16a-1(a)(4) under the Securities Exchange Act of 1934 and the inclusion of these securities in this report shall not be deemed an admission of beneficial ownership of any of the reported securities for purposes of Section 16 or for any other purpose. The price reported reflects the weighted average price per share. These securities were sold in multiple transactions at prices ranging from $22.55 to $22.60 per share, inclusive. Upon request by the staff of the Securities and Exchange Commission, the Issuer or any security holder of the Issuer, the reporting person undertakes to provide full information regarding the number of shares sold at each separate price within the ranges set forth in this footnote.
