ACRES Commercial Realty (NYSE:ACR) - Share price, News & Analysis

Q: What is the Fair Price of ACR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ACR ($8.61) is trading below our estimate of [[fair value]] ($18.92)

ACR fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

ACR Stock Overview

Rewards

Trading at 54.5% below our estimate of its fair value

Earnings are forecast to grow 179.22% per year

Risk Analysis

Does not have a meaningful market cap ($72M)

ACRES Commercial Realty Competitors

Western Asset Mortgage Capital

NYSE:WMC

US$70.3m

Manhattan Bridge Capital

NasdaqCM:LOAN

US$63.5m

Lument Finance Trust

NYSE:LFT

US$115.4m

AG Mortgage Investment Trust

NYSE:MITT

US$105.1m

Price History & Performance

Summary of all time highs, changes and price drops for ACRES Commercial Realty
Historical stock prices
Current Share Price	US$8.61
52 Week High	US$16.45
52 Week Low	US$7.78
Beta	1.72
1 Month Change	-16.65%
3 Month Change	5.52%
1 Year Change	-46.19%
3 Year Change	-74.58%
5 Year Change	-73.60%
Change since IPO	-94.88%

Recent News & Updates

Aug 05

ACRES Commercial Realty in green on significant Q2 revenue growth driven by NII and rental income

ACRES Commercial Realty (NYSE:ACR) beat its Q2 earnings and revenue estimates and also saw a significant Y/Y surge in revenues. Total revenues growth of 104% led by increase in net interest income to $11.27M from $7.09M in year ago quarter; real estate income multiplied more than three times to $8.78M. Net income narrowed to $5.52M from $13.64M in year ago quarter. Earnings available for distribution increased to $0.45/share from $0.10/share in year ago quarter. The company's book value saw a 2% increase to $24.48. Projected operating loss carryforwards of ~$63M, expected to be fully utilized; projected capital loss carryforwards of ~$139M, expected to be partially utilized.

Shareholder Returns

	ACR	US Mortgage REITs	US Market
7D	-7.4%	-15.9%	-5.8%
1Y	-46.2%	-38.5%	-22.1%

Return vs Industry: ACR underperformed the US Mortgage REITs industry which returned -37.8% over the past year.

Return vs Market: ACR underperformed the US Market which returned -23.7% over the past year.

Price Volatility

Is ACR's price volatile compared to industry and market?
ACR volatility
ACR Average Weekly Movement	5.8%
Mortgage REITs Industry Average Movement	4.9%
Market Average Movement	6.9%
10% most volatile stocks in US Market	15.7%
10% least volatile stocks in US Market	2.8%

Stable Share Price: ACR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ACR's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2005	4	Mark Fogel	https://www.acresreit.com

ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and other commercial real estate-related debt investments in the United States. It invests in commercial real estate-related assets, including floating and fixed rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine debt, preferred equity investments, commercial mortgage-backed securities, and commercial real estate equity and preferred equity investments. The company qualifies as a real estate investment trust for federal income tax purposes.

ACRES Commercial Realty Fundamentals Summary

How do ACRES Commercial Realty's earnings and revenue compare to its market cap?
ACR fundamental statistics
Market Cap	US$71.91m
Earnings (TTM)	-US$4.61m
Revenue (TTM)	US$65.09m

1.1x

P/S Ratio

-15.6x

P/E Ratio

Is ACR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ACR income statement (TTM)
Revenue	US$65.09m
Cost of Revenue	US$20.25m
Gross Profit	US$44.85m
Other Expenses	US$49.45m
Earnings	-US$4.61m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.55
Gross Margin	68.90%
Net Profit Margin	-7.08%
Debt/Equity Ratio	411.8%

How did ACR perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ACR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ACR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ACR. This is calculated by dividing ACR's market cap by their current preferred multiple.
What is ACR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$71.91m

ACR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does ACR's PB Ratio compare to its peers?

ACR PB Ratio vs Peers

The above table shows the PB ratio for ACR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	0.7x
WMC Western Asset Mortgage Capital	0.5x	n/a	US$70.3m
LOAN Manhattan Bridge Capital	1.5x	17.6%	US$63.5m
LFT Lument Finance Trust	0.6x	51.0%	US$115.4m
MITT AG Mortgage Investment Trust	0.4x	123.4%	US$105.1m
ACR ACRES Commercial Realty	0.2x	179.2%	US$71.9m

Price-To-Book vs Peers: ACR is good value based on its Price-To-Book Ratio (0.2x) compared to the peer average (0.7x).

Price to Earnings Ratio vs Industry

How does ACR's PE Ratio compare vs other companies in the US Mortgage REITs Industry?

Price-To-Book vs Industry: ACR is good value based on its Price-To-Book Ratio (0.2x) compared to the US Mortgage REITs industry average (0.7x)

Price to Book Ratio vs Fair Ratio

What is ACR's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ACR PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	0.2x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate ACR's Price-To-Book Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of ACR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ACR ($8.61) is trading below our estimate of fair value ($18.92)

Significantly Below Fair Value: ACR is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Future Growth

How is ACRES Commercial Realty forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

179.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: ACR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ACR is expected to become profitable in the next 3 years.

Revenue vs Market: ACR's revenue (11% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: ACR's revenue (11% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if ACR's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has ACRES Commercial Realty performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-16.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ACR is currently unprofitable.

Growing Profit Margin: ACR is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: ACR is unprofitable, and losses have increased over the past 5 years at a rate of 16.3% per year.

Accelerating Growth: Unable to compare ACR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ACR is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (-1.6%).

Return on Equity

High ROE: ACR has a negative Return on Equity (3.32%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is ACRES Commercial Realty's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ACR's short term assets ($2.2B) exceed its short term liabilities ($20.5M).

Long Term Liabilities: ACR's short term assets ($2.2B) exceed its long term liabilities ($1.9B).

Debt to Equity History and Analysis

Debt Level: ACR's net debt to equity ratio (404%) is considered high.

Reducing Debt: ACR's debt to equity ratio has increased from 152.1% to 411.8% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable ACR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ACR is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 12.8% per year.

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Dividend

What is ACRES Commercial Realty current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

ACRES Commercial Realty Dividend Yield vs Market

How does ACRES Commercial Realty dividend yield compare to the market?
Segment	Dividend Yield
Company (ACRES Commercial Realty)	0%
Market Bottom 25% (US)	1.7%
Market Top 25% (US)	4.7%
Industry Average (Mortgage REITs)	13.8%
Analyst forecast in 3 Years (ACRES Commercial Realty)	n/a

Notable Dividend: Unable to evaluate ACR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ACR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ACR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ACR's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: ACR is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ACR has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

8.5yrs

Average management tenure

CEO

Mark Fogel (53 yo)

2.17yrs

Tenure

Mr. Mark Steven Fogel has been the President and Chief Executive Officer of ACRES Commercial Realty Corp. since July 2020 and has been its Director since July 31, 2020. Mr. Fogel co-founded ACRES Capital i...

Leadership Team

Experienced Management: ACR's management team is seasoned and experienced (8.5 years average tenure).

Board Members

Experienced Board: ACR's board of directors are seasoned and experienced ( 12.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

NYSE:ACR Recent Insider Transactions by Companies or Individuals
Date	Value	Name	Entity	Shares	Max Price
23 Sep 22	BuyUS$69,531	Eagle Point Credit Management LLC	Company	7,795	US$8.92
22 Sep 22	BuyUS$265	Eagle Point Credit Management LLC	Company	29	US$9.15
16 Sep 22	BuyUS$217,994	Eagle Point Credit Management LLC	Company	23,415	US$9.31
15 Sep 22	BuyUS$103	Eagle Point Credit Management LLC	Company	11	US$9.33
22 Aug 22	BuyUS$3,800	Eagle Point Credit Management LLC	Company	400	US$9.50
12 Aug 22	BuyUS$139,357	Eagle Point Credit Management LLC	Company	14,838	US$9.43
09 Aug 22	BuyUS$1,309,450	Eagle Point Credit Management LLC	Company	141,255	US$9.31
25 May 22	BuyUS$19,975	Jaclyn Jesberger	Individual	2,030	US$9.84

Ownership Breakdown

What is the ownership structure of ACR?
Owner Type	Number of Shares	Ownership Percentage
Individual Insiders	310,802	3.7%
General Public	3,991,033	47.8%
Institutions	4,049,540	48.5%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 25 shareholders own 49.99% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
13.53%	Eagle Point Credit Management LLC	1,130,036	$9.7m	20.31%	39.98%
9.82%	Punch & Associates Investment Management, Inc.	820,023	$7.1m	-1.79%	0.51%
7.18%	ACRES Capital LLC	599,998	$5.2m	0%	no data
4.3%	The Vanguard Group, Inc.	358,816	$3.1m	0%	no data
1.72%	Barclays PLC Private Banking & Investment Banking Investment	144,023	$1.2m	0%	no data
1.33%	BlackRock, Inc.	111,010	$955.8k	-2.46%	no data
1.3%	Axonic Capital LLC	108,401	$933.3k	0%	9.47%
1.18%	D. E. Shaw & Co., L.P.	98,504	$848.1k	2.55%	no data
1.05%	Acadian Asset Management LLC	87,961	$757.3k	34.65%	no data
1.03%	Andrew Fentress	86,201	$742.2k	18.24%	no data
1.01%	Geode Capital Management, LLC	84,222	$725.2k	0%	no data
0.91%	Benefit Street Partners L.L.C.	76,156	$655.7k	0%	0.54%
0.79%	BMO Asset Management Corp.	65,757	$566.2k	0%	no data
0.67%	William Hart	56,052	$482.6k	9.28%	no data
0.59%	Lindbrook Capital, LLC	49,251	$424.1k	3.14%	0.07%
0.48%	Susquehanna International Group, LLP, Asset Management Arm	39,962	$344.1k	107.72%	no data
0.44%	Steven Kessler	36,565	$314.8k	14.97%	no data
0.42%	David Bryant	35,201	$303.1k	0%	no data
0.42%	State Street Global Advisors, Inc.	34,809	$299.7k	-1.14%	no data
0.36%	Two Sigma Advisers, LP	30,467	$262.3k	-24.9%	no data
0.36%	Securities America Advisors, Inc.	30,037	$258.6k	8.18%	no data
0.29%	Northern Trust Global Investments	24,097	$207.5k	0.4%	no data
0.28%	T. Rowe Price Group, Inc.	23,265	$200.3k	0%	no data
0.26%	Murray Levin	22,095	$190.2k	27.47%	no data
0.26%	Wealthsource Partners, LLC	21,610	$186.1k	0%	0.01%

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
ACR	NYSE (New York Stock Exchange)	Yes	Common Stock	US	USD	Feb 2006
R9L	DB (Deutsche Boerse AG)	Yes	Common Stock	DE	EUR	Feb 2006
ACR.PRC	NYSE (New York Stock Exchange)		8.625% CUM PFD C	US	USD	Jun 2014
ACR.PRD	NYSE (New York Stock Exchange)		7.875 CUM PFD D	US	USD	May 2021

Data	Last Updated (UTC time)
Company Analysis	2022/09/27 00:00
End of Day Share Price	2022/09/27 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31