PART I - FINANCIAL INFORMATION [Item 1: Financial Statements](index=3&type=section&id=Item%201%3A%20Financial%20Statements) Consolidated financial statements for June 30, 2024, show total assets decreased to $2.095 billion, net income increased to $1.7 million, and credit loss allowance rose to $35.0 million [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $2.095 billion by June 30, 2024, driven by reduced CRE loans, slightly lowering total equity Consolidated Balance Sheet Summary (in thousands) | Metric | June 30, 2024 (unaudited) | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$2,095,242** | **$2,196,105** | | CRE loans, net | $1,678,721 | $1,828,336 | | Cash and cash equivalents | $89,622 | $83,449 | | **Total Liabilities** | **$1,650,850** | **$1,749,890** | | Borrowings | $1,582,031 | $1,676,200 | | **Total Equity** | **$444,392** | **$446,215** | - Assets of consolidated variable interest entities (VIEs) decreased to **$1.37 billion** from **$1.48 billion** at year-end 2023, with a corresponding decrease in VIE liabilities[13](index=13&type=chunk) [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Net income allocable to common shares improved to $1.7 million in Q2 2024, driven by a real estate gain and lower credit loss provisions Key Operating Results (in thousands, except per share data) | Metric | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $20,936 | $23,622 | $39,704 | $44,680 | | Net Interest Income | $10,755 | $14,706 | $22,115 | $28,660 | | Provision for credit losses, net | $1,337 | $2,700 | $6,233 | $7,796 | | **Net Income** | **$6,397** | **$5,558** | **$11,321** | **$7,851** | | **Net Income (Loss) Allocable to Common Shares** | **$1,653** | **$817** | **$2,209** | **$(1,599)** | | **Net Income (Loss) Per Common Share - Basic** | **$0.22** | **$0.10** | **$0.29** | **$(0.19)** | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating activities provided $10.2 million, investing activities generated $102.7 million, and financing activities used $113.2 million Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Category | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,211 | $24,468 | | Net cash provided by investing activities | $102,662 | $73,652 | | Net cash used in financing activities | $(113,166) | $(130,568) | | **Net (Decrease) Increase in Cash** | **$(293)** | **$(32,448)** | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail a CRE loan portfolio decrease to $1.7 billion, credit loss allowance increase to $35.0 million, and active share repurchases - The company's CRE loan portfolio had a carrying value of **$1.68 billion**, down from **$1.83 billion** at year-end 2023, consisting of 63 whole loans and one mezzanine loan[62](index=62&type=chunk) - The allowance for credit losses increased to **$35.0 million** as of June 30, 2024, from **$28.8 million** at year-end 2023, with a provision of **$6.2 million** recorded in the first six months of 2024[72](index=72&type=chunk)[75](index=75&type=chunk) - Total borrowings decreased to **$1.58 billion** from **$1.68 billion**, with CRE securitizations (**$1.09 billion**) being the largest component[107](index=107&type=chunk)[112](index=112&type=chunk) - During the first six months of 2024, the company repurchased **$3.6 million** of its common stock (**310,285 shares**) and **$2.2 million** of its Series D Preferred Stock (**100,000 shares**)[142](index=142&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses macroeconomic challenges, NOL utilization strategy, and improved net income despite a smaller CRE loan portfolio [Overview](index=39&type=section&id=Overview) The REIT navigates market challenges by leveraging significant NOL and capital loss carryforwards to grow book value - The company's short-term strategy is to drive book value growth by utilizing its NOL carryforwards of **$46.6 million** and a portion of its net capital loss carryforwards of **$121.9 million**[193](index=193&type=chunk) - The market faces challenges from inflation and prolonged higher interest rates, disrupting financial services, real estate, and credit markets[194](index=194&type=chunk) - The office property market continues to experience high vacancies and slower leasing activity, negatively impacting borrowers' investment support ability[196](index=196&type=chunk) [Results of Operations](index=43&type=section&id=Results%20of%20Operations) Net income allocable to common shares improved to $1.7 million in Q2 2024, driven by lower credit provisions and a real estate gain Net Income (Loss) Allocable to Common Shares (in thousands) | Period | 2024 | 2023 | | :--- | :--- | :--- | | Three Months Ended June 30 | $1,653 | $817 | | Six Months Ended June 30 | $2,209 | $(1,599) | - Net interest income for Q2 2024 decreased by **$4.0 million** compared to Q2 2023, primarily due to a lower volume of interest-earning assets[219](index=219&type=chunk) - The provision for credit losses decreased to **$1.3 million** for Q2 2024 from **$2.7 million** in Q2 2023, contributing to higher net income[227](index=227&type=chunk)[231](index=231&type=chunk) - A non-recurring gain of **$5.8 million** on the conversion of a loan to real estate owned was recognized in the first half of 2024[233](index=233&type=chunk)[234](index=234&type=chunk) [Financial Condition](index=49&type=section&id=Financial%20Condition) Financial condition shows total assets at $2.1 billion, reduced CRE loan portfolio, increased credit loss allowance, and decreased leverage - The CRE loan portfolio's carrying amount decreased to **$1.68 billion** at June 30, 2024, from **$1.83 billion** at year-end 2023, with multifamily properties representing **79.4%** of the portfolio[198](index=198&type=chunk)[203](index=203&type=chunk) - The allowance for credit losses (CECL) increased to **$35.0 million**, or **2.0%** of the loan portfolio, reflecting worsening macroeconomic factors[212](index=212&type=chunk)[244](index=244&type=chunk) - The company's leverage ratio (borrowings to total equity) decreased to **3.6x** at June 30, 2024, from **3.8x** at December 31, 2023[316](index=316&type=chunk) - The company did not pay common share distributions during the first half of 2024, focusing on retaining liquidity and utilizing NOLs to grow book value[320](index=320&type=chunk) [Item 3: Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include credit, counterparty, financing, and interest rate risks, mitigated by strategies like interest rate caps - Primary market risks identified are credit risk, counterparty risk, financing risk, and interest rate risk[329](index=329&type=chunk) - To mitigate credit risk from rising interest rates, **85.6%** of the CRE loan portfolio's par value had interest rate caps in place as of June 30, 2024[331](index=331&type=chunk) Interest Rate Sensitivity Analysis | Scenario | Impact on Net Interest Income | Impact per Share | | :--- | :--- | :--- | | 100 Basis Point Decrease | $(839,000) | $(0.11) | | 100 Basis Point Increase | $846,000 | $0.11 | [Item 4: Controls and Procedures](index=71&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective at the reasonable assurance level as of the end of the period[340](index=340&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2024, that have materially affected, or are reasonably likely to materially affect, internal controls[341](index=341&type=chunk) PART II - OTHER INFORMATION [Item 1: Legal Proceedings](index=72&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is unaware of any litigation contingencies requiring accrual or disclosure in financial statements as of June 30, 2024 - The company is unaware of any contingencies arising from litigation that would require accrual or disclosure in the consolidated financial statements at June 30, 2024[343](index=343&type=chunk) [Item 1A: Risk Factors](index=72&type=section&id=Item%201A%3A%20Risk%20Factors) No material changes to the risk factors previously disclosed in the 2023 Annual Report on Form 10-K have occurred - No material changes to the risk factors disclosed in the 2023 Annual Report on Form 10-K have occurred as of the date of this report[344](index=344&type=chunk) [Item 2: Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=72&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 and issued 333,333 common shares under incentive plans, with an ownership limit waiver - The company has an active share repurchase program, expanded by an additional **$10.0 million** in November 2023, with **$4.1 million** remaining available as of June 30, 2024[346](index=346&type=chunk) Issuer Purchases of Equity Securities (H1 2024) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2024 | 75,138 (Common) | $9.86 | | Jan 2024 | 100,000 (Preferred) | $21.57 | | Feb 2024 | 52,195 (Common) | $10.14 | | Mar 2024 | 67,494 (Common) | $11.84 | | Apr 2024 | 52,812 (Common) | $13.83 | | May 2024 | 39,994 (Common) | $13.37 | | Jun 2024 | 22,652 (Common) | $12.80 | - On May 7, 2024, the company issued **333,333 shares** of common stock under its incentive plans after reaching a book value target of **$27.00 per share**[346](index=346&type=chunk) [Item 5: Other Information](index=72&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 2024 - No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2024[348](index=348&type=chunk) [Item 6: Exhibits](index=73&type=section&id=Item%206%3A%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including various agreements, articles, bylaws, and certifications

ACRES Commercial Realty Corp. (NYSE:ACR) Q2 2024 Earnings Call Transcript August 1, 2024 10:00 AM ET Company Participants Kyle Brengel - VP of Operations Mark Fogel - President and CEO Eldron Blackwell - CFO Andrew Fentress - Chairman Conference Call Participants Stephen Laws - Raymond James Chris Muller - Citizens JMP Operator Good day, ladies and gentlemen, and welcome to the Second Quarter 2024 ACRES Commercial Realty Corp. Earnings Conference Call. Currently, all participants are in a listen-only mode. ...

Financial Performance - GAAP net income per share-diluted was $0.21[8, 9] - EAD for 2Q24 was $0.51[8, 9] - Book Value per Share at June 30, 2024 was $27.20[8, 9], down from $27.25 in 1Q24 and up from $24.50 in 2Q23[9] Loan Portfolio - The CRE loan portfolio at par value is $1.7 billion, comprising 64 loans with a weighted average LTV of 77%[9] - 94% of the par value of the CRE loan portfolio is current on payments[8, 9] - 79% of the CRE loan portfolio is multifamily-focused[8] - Net CRE Loan Repayments for 2Q24 were $61.9 million[8, 9] - $161.1 million of net investments in real estate and properties held for sale[9, 24] Capitalization and Liquidity - Total liquidity at June 30, 2024 was $98.4 million[8, 9] - Asset-specific borrowings were 79% composed of non-recourse, non-mark-to-market CLO financings[9] - Corporate WACC is 7.46%[28]

ACRES Commercial (ACR) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.60 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 45.71%. A quarter ago, it was expected that this commercial real estate investment trust would post earnings of $0.42 per share when it actually produced earnings of $0.16, delivering a surprise of -61.90%.Over the ...

Company Overview - ACRES Commercial Realty Corp. reported its operating results for the quarter ended June 30, 2024, in a press release issued on July 31, 2024[3]. - The company is listed on the New York Stock Exchange under the trading symbol ACR[1]. - The company’s principal executive offices are located at 390 RXR Plaza, Uniondale, New York 11556[1]. - The company has not indicated whether it is an emerging growth company[2]. Financial Reporting - The financial results include key metrics that will be detailed in the earnings presentation available on the company's website[3]. - The report includes a detailed earnings presentation as Exhibit 99.2, which outlines financial performance and future outlook[3]. - The report is filed under Form 8-K, which is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934[4]. - The report does not provide specific financial figures or performance metrics in the extracted content[3]. Corporate Governance - The Chief Financial Officer, Eldron C. Blackwell, signed the report on behalf of the company[5]. - The company has cumulative redeemable preferred stock listed, including 8.625% Fixed-to-Floating Series C and 7.875% Series D[1].

UNIONDALE, N.Y., July 31, 2024 /PRNewswire/ -- ACRES Commercial Realty Corp. (NYSE: ACR) ("ACR" or the "Company"), a real estate investment trust that is primarily focused on originating, holding and managing commercial real estate mortgage loans and equity investments in commercial real estate property through direct ownership and joint ventures, today reported results for the quarter ended June 30, 2024. ACR's GAAP net income allocable to common shares was $1.7 million, or $0.21 per share-diluted, for the ...

Investors in ACRES Commercial Realty Corp. (ACR) need to pay close attention to the stock based on moves in the options market lately. That is because the Aug 16, 2024 $10.00 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:ASGN Incorporated (ASGN) provides IT services. The Zacks Consensus Estimate for its current year earnings has been revised 9.3% downward over the last 60 days.American Woodmark Corporation (AMWD) is a kitchen, bath, office, home organization, and hardware products company. The Zacks Consensus Estimate for its current year earnings has been revised 9.9% downward over the last 60 days.ACRES Commercial Realty Corp. (ACR) is a real estate ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to __________ Commission File Number: 1-32733 ACRES COMMERCIAL REALTY CORP. (Exact name of registrant as specified in its charter) Maryland 20-22871 ...

ACRES Commercial Realty Corp. (NYSE:ACR) Q1 2024 Earnings Conference Call May 2, 2024 10:00 AM ET Company Participants Kyle Brengel - VP, Operations Mark Fogel - President & CEO Eldron Blackwell - CFO Andrew Fentress - Chairman Conference Call Participants Stephen Laws - Raymond James Chris Muller - Citizens JMP Securities Operator Good day, ladies and gentlemen, and welcome to the First Quarter 2024 ACRES Commercial Realty Corp Earnings Conference Call. Currently, all participants are in a listen-only mode ...