ACRES Commercial Realty(ACR) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for the three months ended March 31, 2025, were $17,002 thousand, a decrease of 9.4$18,768 thousand for the same period in 2024[14]. - Net interest income fell to $5,603 thousand for Q1 2025, down 50.7$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$190,067,000 as of March 31, 2025, compared to $188,783,000 on December 31, 2024, reflecting an increase of 0.68$77,143,000 as of March 31, 2025, up from $76,608,000 at the end of 2024, representing a growth of 0.70$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$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].