UNIONDALE, N.Y., July 16, 2025 /PRNewswire/ -- ACRES Commercial Realty Corp. (NYSE: ACR) (the "Company") announced today that it will release its results for the second quarter 2025, on Wednesday, July 30, 2025, after the market closes. The Company invites investors and other interested parties to listen to its live conference call via telephone or webcast on Thursday, July 31, 2025, at 10:00 a.m. Eastern Time.The conference call can be accessed by dialing 1-800-267-6316 (U.S. domestic) or 1-203-518-9783 (I ...

Financial Performance - Total revenues for the three months ended March 31, 2025, were $17,002 thousand, a decrease of 9.4% compared to $18,768 thousand for the same period in 2024[14]. - Net interest income fell to $5,603 thousand for Q1 2025, down 50.7% from $11,360 thousand in Q1 2024[14]. - The company reported a net loss of $730 thousand for the three months ended March 31, 2025, compared to a net income of $4,924 thousand for the same period in 2024[17]. - The net loss income per common share for Q1 2025 was $(0.80), compared to a net income per common share of $0.07 for Q1 2024[14]. - For the three months ended March 31, 2025, the company reported a net loss of $730,000 compared to a net income of $4,924,000 for the same period in 2024[25]. Asset and Liability Changes - Total assets decreased to $1,779,946 thousand as of March 31, 2025, down from $1,881,467 thousand at December 31, 2024, representing a decline of approximately 5.4%[9]. - Total liabilities decreased to $1,339,497 thousand as of March 31, 2025, down from $1,431,805 thousand at December 31, 2024, reflecting a reduction of approximately 6.4%[9]. - The company’s total stockholders' equity decreased to $430,099 thousand as of March 31, 2025, from $439,128 thousand at December 31, 2024, a decline of approximately 2.4%[9]. - The allowance for credit losses decreased to $31,130 thousand as of March 31, 2025, from $32,847 thousand at December 31, 2024, indicating an improvement in credit quality[9]. Investment and Loan Activity - Cash provided by investing activities was $117,735,000 for Q1 2025, significantly higher than $54,871,000 in Q1 2024[25]. - The company’s principal fundings of CRE loans were $26,515,000 in Q1 2025, compared to $11,406,000 in Q1 2024[25]. - The Company holds $1.36 billion in whole loans and $19.7 million in mezzanine loans as of March 31, 2025, with total loans held for investment amounting to $1.38 billion[67]. - The Company had unfunded loan commitments of $84,000,000 and $94,000,000 for CRE whole loans at March 31, 2025, and December 31, 2024, respectively, indicating a decrease of approximately 10.6%[70]. Real Estate and Property Investments - The company held investments in seven real estate properties as of March 31, 2025, with three included in investments in real estate and four in properties held for sale[100]. - Total net investments in real estate and properties held for sale amounted to $190,067,000 as of March 31, 2025, compared to $188,783,000 on December 31, 2024, reflecting an increase of 0.68%[103]. - The carrying value of investments in real estate was $77,143,000 as of March 31, 2025, up from $76,608,000 at the end of 2024, representing a growth of 0.70%[103]. Borrowings and Financing - As of March 31, 2025, total outstanding borrowings amounted to $1,271,071,000 with a weighted average borrowing rate of 6.47% and a remaining maturity of 4.7 years[10]. - The Company has a total of $1,541,287,000 in collateral value backing its borrowings as of March 31, 2025[10]. - The average interest rate for mortgages payable was 9.17% with a remaining maturity of 5.7 years as of March 31, 2025[10]. - The total amount at risk under the Company's financing arrangements was $314,573,000 as of March 31, 2025[134]. Stockholder and Shareholder Information - The Company did not pay any common share distributions for the three months ended March 31, 2025, and 2024[181]. - Total unrecognized compensation costs relating to unvested restricted stock was $2.8 million as of March 31, 2025, expected to be recognized over a weighted average period of 2.9 years[175]. - The Company anticipates distributing substantially all of its taxable income to stockholders to avoid corporate federal income taxes on retained income[179]. - The Company recognized stock-based compensation expense of $815,000 for the three months ended March 31, 2025, up from $477,000 in the same period of 2024[169].

Financial Data and Key Metrics Changes - GAAP net loss allocable to common shares in Q1 2025 was $5,900,000 or $0.80 per share diluted, compared to earnings of $0.48 per share in the previous quarter [11] - Earnings available for distribution (EAD) for Q1 2025 was a loss of $0.86 per share, a decrease of $1.34 from the previous quarter [11][12] - GAAP book value per share decreased to $28.5 on March 31 from $28.87 on December 31 [12] - Available liquidity at March 31 was $87,000,000, comprising $66,000,000 of unrestricted cash and $21,000,000 of projected financing available on unlevered assets [13] Business Line Data and Key Metrics Changes - Loan payoffs during the period were $115,900,000, with a net reduction of the loan portfolio of $109,600,000 [5] - The company closed one new commitment of $15,000,000 and funded existing loan commitments of $12,000,000 [5] - The weighted average spread of the floating rate loans in the $1,400,000,000 commercial real estate loan portfolio is now 3.67% over one month term SOFR rates [6] - The total allowance for credit losses at March 31 was $31,100,000, representing 2.26% of the loan portfolio [11] Market Data and Key Metrics Changes - The number of loans rated four, zero, five decreased from 12 at the end of last year to 11 at the end of this quarter [7] - The company expects to grow the portfolio by $300,000,000 to $500,000,000 by the end of the year, despite loan payoffs [19] Company Strategy and Development Direction - The company aims to optimize portfolio leverage to drive equity returns and is focused on improving credit quality while recycling capital into new investments [9][10] - The investment landscape is described as attractive, with the company actively closing new loans across various asset classes, including multifamily, student housing, self-storage, and retail [14][19] Management's Comments on Operating Environment and Future Outlook - Management indicated that Q1 2025 represents a trough in portfolio size, with expectations of ramping securitization in the second half of the year [14] - The company noted that the pipeline has been stronger than ever, with increased quoting of deals due to market volatility pushing more opportunities their way [26] Other Important Information - The company incurred a non-recurring charge of $1,500,000 related to unamortized debt issuance costs during the quarter [9] - The company sold a $20,600,000 loan at par and took a $700,000 loss on a non-performing hotel property [7][23] Q&A Session Summary Question: Could you talk a little bit about the portfolio and the payoffs that occurred during the quarter? - Management confirmed that the payoffs were expected, with five loan payoffs occurring, including refinancings and asset sales [17] Question: Should we expect more early payments and what are the opportunities for portfolio growth? - Management expects more payoffs throughout the year and anticipates net growth in the portfolio between $300,000,000 and $500,000,000 [19] Question: Can you provide details on the loan sales and the impact on earnings? - One loan was sold at par, while another non-performing hotel property was sold at 94¢ on the dollar, resulting in a $700,000 loss [23] Question: Is the increase in real estate expenses due to seasonality, and should we expect REO sales in 2025? - Management indicated that the increase is primarily due to seasonality and expects to report on asset sales in the upcoming quarters [25] Question: How is the pipeline looking given recent market volatility? - Management reported a stronger pipeline than ever, with increased quoting of deals due to some lenders moving to the sidelines [26]

Financial Data and Key Metrics Changes - GAAP net loss allocable to common shares in Q1 2025 was $5,900,000 or $0.80 per share diluted, compared to earnings of $0.48 per share in the previous quarter [11] - Earnings available for distribution (EAD) for Q1 2025 was a loss of $0.86 per share, a decrease of $0.41 from the previous quarter [12] - GAAP book value per share decreased to $28.5 on March 31 from $28.87 on December 31 [12] - Available liquidity at March 31 was $87,000,000, comprising $66,000,000 of unrestricted cash and $21,000,000 of projected financing available on unlevered assets [13] Business Line Data and Key Metrics Changes - Loan payoffs during the period were $115,900,000, with a net reduction of the loan portfolio of $109,600,000 [5] - The company closed one new commitment of $15,000,000 and funded existing loan commitments of $12,000,000 during the quarter [5] - The weighted average spread of the floating rate loans in the $1,400,000,000 commercial real estate loan portfolio is now 3.67% over one month term SOFR rates [6] - The total allowance for credit losses at March 31 was $31,100,000, representing 2.26% of the loan portfolio [11] Market Data and Key Metrics Changes - The company sold two loans during the period, including a loan for $31,700,000 in proceeds [5] - A $20,600,000 loan was sold at par on an underperforming sub-storage facility in Miami [6] - One loan was sold at 94¢ on the dollar, resulting in a $700,000 loss [24] Company Strategy and Development Direction - The company aims to optimize portfolio leverage to drive equity returns and plans to redeploy capital into attractive commercial real estate loans [8] - The investment landscape is described as attractive, with expectations of net growth in the portfolio between $300,000,000 and $500,000,000 by the end of the year [20] - The company is actively closing new loans and focusing on maintaining strong credit quality in the current portfolio [14] Management's Comments on Operating Environment and Future Outlook - Management indicated that Q1 2025 represents a trough in portfolio size, with expectations to ramp up securitization in the second half of the year [14] - The company expects to see more payoffs throughout the year through refinancings or sales of assets, indicating a healthy portfolio [20] - The pipeline for new loans is reported to be stronger than ever, with increased quoting of deals due to market volatility pushing opportunities their way [27] Other Important Information - The company incurred a non-recurring charge of $1,500,000 related to unamortized debt issuance costs during the quarter [9] - The GAAP debt to equity leverage ratio slightly decreased to 2.9 times at March 31 from 3 times at December 31 [13] Q&A Session Summary Question: Could you talk a little bit about the portfolio and the payoffs that occurred during the quarter? - Management confirmed that the payoffs were expected, with five loan payoffs occurring, primarily through refinancing [18] Question: Should we expect more early payments and what are the opportunities for portfolio growth? - Management expects more payoffs throughout the year and anticipates net growth in the portfolio despite these payoffs, focusing on multifamily and other asset classes [20] Question: Can you provide details on the loan sales and the impact on earnings? - One loan was sold at par, while another was sold at a loss of 94¢ on the dollar due to underperformance [24] Question: Is the increase in real estate expenses due to seasonality? - Management indicated that the increase is primarily due to seasonality, particularly in hotel operations, and expects a turnaround in Q2 [26] Question: How is the pipeline looking given recent market volatility? - The pipeline is reported to be stronger than ever, with many opportunities arising from market volatility [27]

FIRST QUARTER 2025 EARNINGS PRESENTATION April 30, 2025 DISCLAIMER Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are not historical facts but rather are based on ACRES Commercial Realty Corp.'s ("ACR's" or the "Company's") current beliefs, assumptions and expectations. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are kno ...

Financial Results - ACRES Commercial Realty Corp. reported its operating results for Q1 2025 on April 30, 2025[7] - Specific financial metrics and performance data were included in the press release and earnings presentation[7] Earnings Presentation - The company provided a detailed earnings presentation available on its website[7] Regulatory Compliance - The report is part of the requirements under the Securities Exchange Act of 1934[12] - The Chief Financial Officer, Eldron C. Blackwell, signed the report[14]

Core Viewpoint - ACRES Commercial Realty Corp. has authorized an additional $10 million for its existing share repurchase program to buy back outstanding shares of both common and preferred stock [1] Group 1: Share Repurchase Program - The company intends to repurchase shares through various methods including open market purchases and privately-negotiated transactions, in compliance with federal securities laws [1] - The timing and amount of shares repurchased will be determined by the company's management based on market conditions and other factors [2] Group 2: Company Overview - ACRES Commercial Realty Corp. is a real estate investment trust focused on originating, holding, and managing commercial real estate mortgage loans, and may also hold equity investments in commercial real estate properties [3] - The company 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]

Group 1 - The article provides profiles of two professionals with extensive backgrounds in nuclear engineering and environmental engineering, highlighting their educational qualifications and career experiences [1] - The first individual has a 41-year career in nuclear engineering, including roles in nuclear facility construction and government contracting, and has been an avid investor for over 40 years [1] - The second individual has a 35-year career focused on commercial nuclear power engineering services and nuclear waste clean-up, emphasizing safety in their work [1]

Company Announcement - ACRES Commercial Realty Corp. will release its first quarter 2025 results on April 30, 2025, after market close [1] - A live conference call is scheduled for May 1, 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 May 15, 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]

Core Viewpoint - ACRES Commercial Realty has successfully repurchased its assets in ACRES Commercial Realty 2021-FL1 and ACRES Commercial Realty 2021-FL2, eliminating the existing JP Morgan warehouse facility balance and entering into a new $940 million managed facility with JP Morgan Chase Bank to leverage commercial mortgage loan investments [1][2]. Group 1: Company Actions - The company announced the redemption of the CRE securitizations at par and the execution of a financing arrangement with JP Morgan, which diversifies its capital sources at attractive pricing [2]. - The new $940 million facility will provide term funding with underlying loans and has a two-year reinvestment period [1]. Group 2: Company Profile - ACRES Commercial Realty Corp. is a real estate investment trust focused on originating, holding, and managing commercial real estate mortgage loans, and may also hold equity investments in commercial real estate properties [2]. - The company 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 [2].