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ACR-PD

ACRES Commercial Realty Corp.

ACR-PD

ACRES Commercial Realty Corp. • NYSE
$22.05 ▲ 0.14% (+0.03)
Market Cap $153.42 M
52w High $23.11
52w Low $18.12
Dividend Yield 1.97%
P/E 43.49
Volume 2.46K
Outstanding Shares 6.96M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $21.037M ▼ $2.49M ▼ $18.047M ▲ 85.787% ▲ $1.38 ▲ $37.983M ▲
Q2-2025 $21.873M ▲ $4.162M ▲ $4.55M ▲ 20.802% ▲ $-0.1 ▲ $24.646M ▲
Q1-2025 $17.002M ▼ $3.906M ▼ $-546K ▼ -3.211% ▼ $-0.8 ▼ $22.502M ▼
Q4-2024 $46.717M ▲ $5.11M ▲ $9.53M ▲ 20.399% ▼ $0.54 ▲ $34.855M ▲
Q3-2024 $39.301M $4.612M $8.142M 20.717% $0.37 $33.674M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $40.925M ▼ $1.689B ▼ $1.254B ▼ $432.928M ▲
Q2-2025 $42.747M ▼ $1.818B ▲ $1.383B ▲ $425.279M ▼
Q1-2025 $66.037M ▲ $1.78B ▼ $1.339B ▼ $430.099M ▼
Q4-2024 $56.713M ▼ $1.881B ▼ $1.432B ▼ $439.128M ▲
Q3-2024 $70.074M $2.01B $1.563B $436.34M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $18.047M ▲ $-9.417M ▼ $149.722M ▲ $-142.475M ▼ $-2.17M ▲ $-9.417M ▼
Q2-2025 $4.324M ▲ $11.767M ▲ $-63.109M ▼ $29.498M ▲ $-21.844M ▼ $11.715M ▲
Q1-2025 $-730K ▼ $-4.564M ▼ $117.735M ▼ $-104.08M ▲ $9.091M ▲ $-4.618M ▼
Q4-2024 $9.32M ▲ $757K ▼ $124.454M ▲ $-138.643M ▼ $-13.432M ▲ $757K ▼
Q3-2024 $8.054M $8.417M $71.952M $-100.927M $-20.558M $8.409M

Revenue by Products

Product Q3-2015Q4-2015Q1-2017
Commercial Finance
Commercial Finance
 $0 ▲$20.00M ▲$0 ▼
Commercial Real Estate Loans
Commercial Real Estate Loans
 $20.00M ▲$50.00M ▲$10.00M ▼
Corporate and Other
Corporate and Other
 $-10.00M ▲$0 ▲$-10.00M ▼
cumulative intercompany reclassification
cumulative intercompany reclassification
 $20.00M ▲$80.00M ▲$10.00M ▼
Residential Mortgage Loans
Residential Mortgage Loans
 $0 ▲$10.00M ▲$0 ▼
Middlemarket Loans
Middlemarket Loans
 $10.00M ▲$20.00M ▲$0 ▼

Five-Year Company Overview

Income Statement

Income Statement ACRES has moved from a deep loss a few years ago to a string of modest profits, showing a meaningful financial turnaround. Revenue and core lending income have been fairly steady in recent years, though not on a clear upward path, which suggests a focus on maintaining quality rather than chasing rapid growth. Profitability is positive but not robust, with earlier strong margins having narrowed as conditions in commercial real estate and funding costs have become tougher. Earnings have also been somewhat volatile over the period, which is common for mortgage REITs that are exposed to shifting interest rates and property market cycles. Overall, the income statement points to a lean but now-stable earnings profile that still carries sensitivity to economic and credit conditions.

Balance Sheet

Balance Sheet The balance sheet shows a classic mortgage REIT profile: a relatively small equity base supporting a much larger pool of loans and investments funded mainly with debt. Total assets grew coming out of 2020 and then have been trimmed back, while debt has also been reduced from earlier peaks, pointing to some deliberate shrinking and de-risking of the portfolio. Equity has held roughly steady in recent years, indicating that book value has been preserved after the earlier hit, but not materially expanded. Cash on hand is modest, so the company relies heavily on access to financing markets and the continued health of its loan book. High leverage can work in its favor in good times but also amplifies downside if credit losses or funding stresses emerge.

Cash Flow

Cash Flow Operating cash flow has been consistently positive for several years, which is a key strength, but the cushion is relatively thin rather than abundant. Because the business is lending-focused with minimal physical investment needs, free cash flow closely mirrors operating cash flow, meaning most cash comes directly from the loan portfolio’s performance and funding structure. The absence of heavy capital spending is typical for a financial REIT and allows more flexibility in how cash is used, whether for servicing obligations or repositioning the balance sheet. Still, the company’s dependence on ongoing loan repayments and stable borrowing costs means cash flow quality is tied closely to credit conditions and interest rate dynamics rather than long-term contracted revenues.

Competitive Edge

Competitive Edge ACRES competes in a crowded commercial real estate lending market, but its narrow focus on middle-market borrowers gives it a defined niche. Many traditional banks have pulled back from this segment, creating room for specialized lenders that can move faster and structure more flexible deals, which plays to ACRES’ strengths. The firm leans heavily on its externally managed team’s experience, relationship-based lending, and ability to tailor financing across a property’s life cycle, from construction through stabilization. This focus on multifamily, student housing, hospitality, industrial, and office in key markets can create repeat business and a network effect, but it also concentrates risk in property types that are sensitive to economic slowdowns and local market imbalances. Competition from other non-bank lenders and private credit funds remains intense, so maintaining discipline in underwriting while still winning attractive deals is an ongoing balancing act.

Innovation and R&D

Innovation and R&D ACRES is not a traditional technology or R&D-heavy company, but it does lean on process innovation and a technology-enabled lending platform to differentiate itself. Its “end-to-end” platform aims to streamline everything from loan origination and underwriting to servicing, which can improve speed and consistency for middle-market borrowers who value responsiveness. The real innovation is in how it applies available tools—digital applications, data-driven underwriting, and relationship management—to a segment often underserved by large banks. Looking ahead, the main opportunities lie in gradually enhancing analytics, potentially integrating more advanced data and AI-driven risk tools, and possibly developing specialized products such as ESG-focused or green financing. These are incremental, practical innovations rather than disruptive technologies, but they can still strengthen its competitive edge if executed well.

Summary

ACRES Commercial Realty has transitioned from a period of heavy losses into a phase of modest but steady profitability, supported by a more disciplined and somewhat slimmed-down balance sheet. The company runs a leveraged, credit-sensitive business model typical of mortgage REITs, where small shifts in interest rates, funding conditions, or property values can have an outsized impact on results. Its core strength lies in a well-defined niche—middle-market commercial real estate lending—where experience, relationships, and flexible structuring matter as much as price. At the same time, concentration in cyclical property sectors and reliance on external management and financing markets introduce meaningful ongoing risk. Overall, the story is one of a focused lender that has stabilized its financials and is leaning on specialization and process-driven innovation, with future outcomes heavily tied to credit quality, capital access, and how effectively it navigates changing real estate and interest-rate cycles.