ACRES Commercial Realty (NYSE: ACR ) has been a remarkable compounder of wealth, in lieu of a dividend, over the last year as the mortgage REIT embarked on a sustained campaign of share buybacks that has slimmed its weighted average shares outstanding. This figureThe equity market is a powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-gr ...

Zefiro Methane Completes First-Ever Sale of Carbon Offsets Originated Under ACR's Orphan Well MethodologyZefiro has made a key breakthrough by successfully originating carbon credits based on confirmed emissions reductions of 92,956 metric tonnes of CO2 equivalent from a remediation project in Custer County, Oklahoma. Zefiro has also made its first delivery of carbon credits to Mercuria Energy America, LLC to fulfill a pre-sale agreement. This transaction sets a new precedent in the marketplac ...

Core Insights - Acrivon Therapeutics is advancing two clinical-stage assets, ACR-368 and ACR-2316, both demonstrating anti-tumor activity in clinical studies [1][2] - The company utilizes its proprietary AI-driven Generative Phosphoproteomics AP3 platform to enhance drug design and development [1][10] - As of June 30, 2025, Acrivon has $147.6 million in cash and equivalents, expected to fund operations until Q2 2027 [1][9] Clinical Development - ACR-368 is in a registrational-intent Phase 2b trial for endometrial cancer, showing deep and durable responses in patients previously treated with chemotherapy and anti-PD-1 therapy [2][7] - ACR-2316, a WEE1/PKMYT1 inhibitor, is in a Phase 1 trial, with initial clinical activity observed in several solid tumor types, including confirmed partial responses in endometrial cancer [4][12] Financial Performance - For Q2 2025, Acrivon reported a net loss of $21.0 million, compared to a net loss of $18.8 million in Q2 2024 [8] - Research and development expenses increased to $16.2 million in Q2 2025 from $15.0 million in Q2 2024, primarily due to increased personnel for clinical trials [8] - General and administrative expenses remained stable at $6.5 million for Q2 2025, compared to $6.4 million in Q2 2024 [9] Upcoming Milestones - The company plans to provide updates on the registrational-intent trial for ACR-368 and report initial clinical data from the Phase 1 study of ACR-2316 in the second half of 2025 [14] - Acrivon is also advancing a new cell cycle drug discovery program targeting an undisclosed target towards development candidate nomination in 2025 [14]

Part I [Financial Statements](index=3&type=section&id=Item%201%3A%20Financial%20Statements) The company's H1 2025 financial statements reflect decreased assets and a net loss, driven by lower interest income and a credit loss reversal [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets, liabilities, and equity decreased, primarily driven by a reduction in CRE loans and lower borrowings Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$1,818,308** | **$1,881,467** | | CRE loans, net | $1,361,648 | $1,454,545 | | Cash and cash equivalents | $42,747 | $56,713 | | **Total Liabilities** | **$1,382,906** | **$1,431,805** | | Borrowings | $1,309,296 | $1,360,371 | | **Total Equity** | **$435,402** | **$449,662** | - The company had **no consolidated Variable Interest Entities (VIEs)** as of June 30, 2025, a change from December 31, 2024, when consolidated VIEs held **$1.14 billion in total assets** and **$865.0 million in total liabilities**, due to the optional redemption of two CRE securitizations in March 2025[11](index=11&type=chunk)[44](index=44&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For H1 2025, the company reported a net loss allocable to common shares, primarily due to decreased net interest income, partially offset by a credit loss reversal Statement of Operations Summary (in thousands, except per share data) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Interest Income | $57,557 | $83,677 | | Net Interest Income | $14,170 | $22,115 | | (Reversal of) provision for credit losses, net | $(2,497) | $6,233 | | **Net Income** | **$3,594** | **$11,321** | | **Net (Loss) Income Allocable to Common Shares** | **$(6,591)** | **$2,209** | | **Net (Loss) Income Per Common Share - Basic** | **$(0.90)** | **$0.29** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, cash and restricted cash decreased, with operating and investing activities providing cash, largely offset by financing activities from securitization repayments and new facility proceeds Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $7,203 | $10,211 | | Net cash provided by investing activities | $54,626 | $102,662 | | Net cash used in financing activities | $(74,582) | $(113,166) | | **Net Decrease in Cash** | **$(12,753)** | **$(293)** | | Cash at End of Period | $44,850 | $91,593 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, including VIE redemption, the CRE loan portfolio, a new financing facility, share repurchases, and unfunded loan commitments - The company is a REIT focused on originating, holding, and managing CRE mortgage loans and equity investments, externally managed by ACRES Capital, LLC[26](index=26&type=chunk) - In March 2025, the company exercised the optional redemption on its two consolidated VIEs, which were CRE securitizations, resulting in no consolidated VIEs as of June 30, 2025[44](index=44&type=chunk) - The company has several investments in unconsolidated entities, including joint ventures for property conversion and development, accounted for using the equity or cost method[51](index=51&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) - The company has **$77.7 million in unfunded loan commitments** as of June 30, 2025, advanced as borrowers meet specified criteria for projects like capital improvements or construction[225](index=225&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202%3A%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's performance in a challenging market, highlighting book value growth via NOLs, a decreased CRE loan portfolio, significant refinancing, a net loss from lower interest income, and current liquidity - The company's short-term strategy is to drive book value (BV) growth by utilizing its **$32.1 million in NOL carryforwards** and **$121.9 million in net capital loss carryforwards** to retain future earnings and grow its investable base[231](index=231&type=chunk) - The CRE loan portfolio decreased to a carrying value of **$1.4 billion** at June 30, 2025, from **$1.5 billion** at December 31, 2024, with multifamily properties representing **75.0%** of the portfolio[238](index=238&type=chunk)[243](index=243&type=chunk) - The allowance for credit losses (CECL) was **$30.3 million (2.2% of the loan portfolio)** at June 30, 2025, down from **$32.8 million** at year-end 2024, due to improved credit risk modeling and loan payoffs despite worsening macroeconomic factors[254](index=254&type=chunk) - Common stock book value per share decreased by **$0.94** to **$27.93** at June 30, 2025, from December 31, 2024[257](index=257&type=chunk) [Results of Operations](index=54&type=section&id=Results%20of%20Operations) The company reported a net loss allocable to common shares for Q2 2025, driven by decreased net interest income, significantly offset by a positive swing in credit loss provisions, with real estate income growth Net Interest Income Variance Analysis (Q2 2025 vs Q2 2024, in thousands) | Description | Net Change | Due to Volume | Due to Rate | | :--- | :--- | :--- | :--- | | **Total Decrease in Interest Income** | **$(12,235)** | **$(7,881)** | **$(4,354)** | | **Total Decrease in Interest Expense** | **$(10,047)** | **$(9,619)** | **$(428)** | | **Net Decrease in Net Interest Income** | **$(2,188)** | **$1,738** | **$(3,926)** | - Real estate income increased by **$3.1 million (31%)** in Q2 2025 compared to Q2 2024, driven by a newly operational student housing property, asset acquisitions via foreclosure, and improved occupancy and rates at two hotel properties[276](index=276&type=chunk) - The provision for credit losses saw a significant positive change, with a **reversal of $0.8 million** in Q2 2025 compared to a **provision of $1.3 million** in Q2 2024, primarily due to decreased modeled credit risk and loan payoffs[277](index=277&type=chunk)[281](index=281&type=chunk) [Financial Condition](index=61&type=section&id=Financial%20Condition) The company's investment portfolio, dominated by CRE loans, saw a net reduction, with the allowance for credit losses at $30.3 million; financing was significantly altered by securitization redemptions and a new facility, maintaining a 3.0x leverage ratio Investment Portfolio Summary (June 30, 2025, in thousands) | Asset Type | Amortized Cost | Net Carrying Amount | Percent of Portfolio | | :--- | :--- | :--- | :--- | | CRE whole loans | $1,372,635 | $1,347,264 | 83.71% | | CRE mezzanine loans | $19,363 | $14,384 | 0.89% | | Loans held for sale | $45,800 | $45,800 | 2.85% | | Other investments (Real Estate, etc.) | $202,010 | $202,010 | 12.55% | | **Total Investment Portfolio** | **$1,639,808** | **$1,609,458** | **100.00%** | - The CRE loan portfolio is geographically concentrated in the Southwest (**25.7%**), Mountain (**17.4%**), and Southeast (**15.9%**) regions by carrying value[294](index=294&type=chunk) - As of June 30, 2025, **five CRE whole loans** with a total amortized cost of **$115.6 million** and **one mezzanine loan of $4.7 million** were in payment default[317](index=317&type=chunk) [Liquidity and Capital Resources](index=78&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity at June 30, 2025, included $42.7 million in cash; cash decreased due to major refinancing, including a new $939.9 million facility used to repay securitizations, with the company planning to use significant tax assets and suspending common stock distributions - Primary liquidity sources at June 30, 2025, include **$42.7 million of unrestricted cash and cash equivalents** and **$21.9 million of potential proceeds from unlevered financeable CRE loans**[373](index=373&type=chunk) - In March 2025, the company executed a major refinancing, entering a **new $939.9 million facility with JPMorgan Chase** and using the proceeds to redeem two securitizations (ACR 2021-FL1 and ACR 2021-FL2)[384](index=384&type=chunk) Tax Loss Carryforwards (in millions) | Tax Asset Item | REIT (QRS) | TRS | | :--- | :--- | :--- | | Net Operating Loss | $32.1 | $60.9 | | Net Capital Loss | $121.9 | $1.0 | - The company has suspended common share distributions to retain liquidity and utilize NOLs, but intends to continue making regular quarterly distributions to preferred stockholders[401](index=401&type=chunk)[402](index=402&type=chunk) [Critical Accounting Policies and Estimates](index=87&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Management identifies key accounting policies requiring significant judgment, including the Allowance for Credit Losses (CECL), valuation of real estate investments, revenue recognition, and determination of Variable Interest Entities - The Allowance for Credit Losses (CECL) is determined using a probability of default and loss given default methodology over a forecast period, reverting to a historical mean loss ratio, requiring significant judgment regarding macroeconomic forecasts and risk pooling[410](index=410&type=chunk) - Investments in real estate acquired via foreclosure or deed-in-lieu are initially recorded at fair value; if classified as held for sale, they are carried at the lower of cost or fair value, and depreciation ceases[417](index=417&type=chunk)[418](index=418&type=chunk) - Interest income recognition is suspended for loans that are 90 days past due or when recovery is doubtful, with previously accrued interest reversed when a loan is on nonaccrual status[412](index=412&type=chunk)[422](index=422&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=76&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are credit, counterparty, financing, and interest rate risk, managed through underwriting and rate caps; interest rate risk is significant due to floating-rate loans, with a hypothetical 100 basis point rate increase estimated to increase net interest income by $2.7 million - The company is exposed to credit risk from its loan portfolio, mitigated by requiring borrowers to purchase interest rate caps; as of June 30, 2025, **62% of the loan portfolio's par value** had interest rate caps or debt service reserves in place[435](index=435&type=chunk) - Financing risk exists due to reliance on securitizations, term facilities, and warehouse lines, where weakness in financial markets could make lenders unwilling or unable to provide financing[438](index=438&type=chunk) Hypothetical Interest Rate Sensitivity (Three Months Ended June 30, 2025) | Rate Change | Increase (Decrease) to Net Interest Income (in thousands) | Increase (Decrease) to Net Interest Income Per Share | | :--- | :--- | :--- | | 100 Basis Point Decrease | $(2,060) | $(0.07) | | 100 Basis Point Increase | $2,727 | $0.09 | [Controls and Procedures](index=78&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[444](index=444&type=chunk) - No material changes to the internal control over financial reporting occurred during the quarter ended June 30, 2025[445](index=445&type=chunk) Part II [Legal Proceedings](index=79&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is unaware of any legal contingencies that would require accrual or disclosure in the financial statements as of June 30, 2025 - The company is unaware of any legal contingencies that would require disclosure or accrual as of June 30, 2025[447](index=447&type=chunk) [Risk Factors](index=79&type=section&id=Item%201A%3A%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K[448](index=448&type=chunk) [Issuer Purchases of Equity Securities](index=79&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company continued its share repurchase program, augmented by a $10.0 million authorization in April 2025, repurchasing 491,749 common shares during H1 2025, with $5.4 million remaining available - In April 2025, the Board authorized an additional **$10.0 million** for the repurchase of common and preferred stock; as of June 30, 2025, **$5.4 million** remained available under the program[449](index=449&type=chunk) Monthly Share Repurchases (Jan - Jun 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 44,306 | $17.38 | | Feb 2025 | 72,858 | $19.31 | | Mar 2025 | 103,024 | $21.35 | | Apr 2025 | 19,622 | $21.70 | | May 2025 | 111,192 | $18.88 | | Jun 2025 | 140,747 | $18.10 | [Other Information](index=79&type=section&id=Item%205%3A%20Other%20Information) No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q2 2025, and the company amended its guarantee agreement with JPMorgan Chase on August 1, 2025 - On August 1, 2025, the company entered into Amendment No. 7 to its Guarantee with JPMorgan Chase to amend the terms of the debt service coverage period[452](index=452&type=chunk) - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during Q2 2025[451](index=451&type=chunk) [Exhibits](index=80&type=section&id=Item%206%3A%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including articles of incorporation, bylaws, debt indentures, management agreements, compensation plans, various financing agreements, and required certifications

ACRES Commercial Realty (ACR) Q2 2025 Earnings Call July 31, 2025 10:00 AM ET Speaker0Good day, ladies and gentlemen, and welcome to the Second Quarter twenty twenty five ACRES Commercial Realty Corp Earnings Conference Call. Currently, all participants are in a listen only mode. Later, we will conduct a question and answer session with instructions to follow at that time.As a reminder, this call is being recorded. I would now like to introduce your host for today's conference, Kyle Brengel, Vice President, ...

Financial Performance - The company reported a GAAP net loss per share-diluted of ($0.10) for the second quarter of 2025[10, 12] - Earnings Available for Distribution (EAD) for 2Q25 was $0.04 per share, an 11.4% annual increase since the ACRES acquisition in 3Q20[10, 12] - Book value per share at June 30, 2025, was $27.93, down from $28.50 in 1Q25 and up from $27.20 in 2Q24[10, 12] Loan Portfolio & Activity - The CRE loan portfolio at par value was $1.4 billion, with a weighted average LTV of 80%[12] - Net CRE loan production for 2Q25 was $60.5 million[10, 12] - 91.4% of the par value of the CRE loan portfolio is current on payments[10, 12] - 75% of the CRE loan portfolio is focused on multifamily properties[10] Capitalization & Liquidity - Total liquidity at June 30, 2025, was $64.7 million[10, 13] - Total capacity at June 30, 2025, was $2.2 billion[13] - Capacity available at June 30, 2025, was $908.8 million[13] Real Estate Investments - Net investments in real estate and properties held for sale totaled $176.8 million[12, 34]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 30, 2025 ACRES Commercial Realty Corp. (Exact name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation) Maryland 1-32733 20-2287134 (Commission File Number) (IRS Employer Identification No.) 390 RXR Plaza Uniondale, New York 11556 (Address of Principal ...

ACR issued a full, detailed presentation of its results for the quarter ended June 30, 2025 that can be viewed at www.acresreit.com. Earnings Call Details ACR will host a live conference call on July 31, 2025 at 10:00 a.m. Eastern Time to discuss its second 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. Fo ...

Company Announcement - ACRES Commercial Realty Corp. will release its second quarter 2025 results on July 30, 2025, after market close [1] - A live conference call is scheduled for July 31, 2025, at 10:00 a.m. Eastern Time [1] Conference Call Details - The conference call can be accessed by dialing 1-800-267-6316 for U.S. domestic or 1-203-518-9783 for international calls, using Conference ID ACRES [2] - A replay of the conference call will be available until August 14, 2025, through the company's website and by phone [2] Company Overview - ACRES Commercial Realty Corp. is a real estate investment trust focused on originating, holding, and managing commercial real estate mortgage loans [3] - The company may also hold equity investments in commercial real estate properties through direct ownership and joint ventures [3] - It is externally managed by ACRES Capital, LLC, which specializes in middle market commercial real estate lending across various property types in top U.S. markets [3]

The equity market is a powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-growth companies, high-dividend tickers, REITs, and green energy firms. Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote th ...