ACRES Commercial Realty Corp (NYSE:ACR) Strengthens Funding While Valuation Pressures Persist

Capital-raising moves expand financing capacity for new originations, yet WMDST’s valuation flags the shares as over-valued. Technicals and liquidity dynamics set up a contested near-term range.

Recent News

Jan 20, 2026 — ACRES priced a managed CLO that will fund roughly $1.0 billion of commercial first mortgage loans at a weighted-average cost of one‑month Term SOFR +168 bps. Dec 15, 2025 — the company declared quarterly cash dividends on its Series C and Series D preferred stock, setting the Series C dividend at $0.6103331 per share (floating rate tied to three‑month Term SOFR plus spread).

Technical Analysis

ADX and Directional Indicators: ADX at 20.51 indicates an emerging trend strength while DI‑ (26.37) increases and DI+ (16.09) decreases, a configuration that produces a bearish directional bias and suggests sellers currently exert more influence than buyers.

MACD: MACD shows a dip-and-reversal pattern, which signals bullish momentum development; however MACD remains slightly negative at -0.56 and sits below the signal line (-0.51), so momentum improvement requires confirmation from a cross above the signal line to gain conviction.

MRO: MRO at -7.45 indicates the price sits below the model target and therefore carries measured upside potential; the MRO dip-and-reversal trend supports a move toward the target over the near term if momentum sustains.

RSI and Momentum: RSI measures 44.53 and is decreasing, reflecting short-term weakness and limited upside conviction until momentum stabilizes above 50.

Price vs Averages and Bands: Last close $19.51 sits below the 20‑day average ($19.84), 12‑day EMA ($19.73, decreasing) and below the 26‑day EMA ($20.32), indicating immediate resistance near those averages. Bollinger bands compress (upper ~$20.37, lower ~$19.30), consistent with the low 42‑day volatility and a likely near-term range bound market until a directional breakout emerges.

 


Fundamental Analysis

Data through period ending 2025-09-30 (report dated 2025-10-29). EPS came in at $1.01 versus an estimate of $0.01, recorded as a 100.0% surprise. GAAP net income for the most recent reported quarter and year periods appears positive, yet operating and free cash flow show stress: operating cash flow and free cash flow both negative at $-9,417,000, producing a free cash flow yield of -6.37%.

Revenue and earnings growth: Reported revenue growth shows strong expansion — QoQ revenue growth +96.36% and YoY revenue growth +179.16% — while reported earnings growth reads -11.1% on one measure but a positive year‑over‑year earnings figure of 19.97% on another, indicating mixed signals across periods and calls for attention to underlying drivers of the swings.

Balance sheet and leverage: Cash balances total $40,925,000 against net debt of $1,147,007,000; debt to assets at 73.06% and debt to equity at 284.96% indicate high leverage. Debt to equity sits well above the industry peer mean (industry peer mean = 0.69796 and industry peer median = 0.39816), projecting materially higher leverage than peers.

Valuation metrics: Trailing P/E stands at 19.84 while forward P/E reaches 42.33; price‑to‑book equals 0.34, well below the industry peer mean (industry peer mean = 3.01068 and industry peer median = 3.63320). The low price‑to‑book relative to peers contrasts with WMDST’s determination that the stock is over‑valued, a conclusion driven by the combination of high leverage, negative free cash flow and an elevated forward P/E.

Dividend and coverage: Dividend yield around 3.57% with a dividend coverage ratio of 2.85, signaling the company covered distributions from available earnings at recent levels. Interest expense ($19,917,000) and cost of debt (~1.536%) remain material items to monitor as financing activity increases.

Valuation summary: WMDST values the stock as over‑valued given negative free cash flow, substantial net debt relative to market capitalization, and a forward multiple that implies stretched expectations despite a low trailing price‑to‑book ratio.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2025-09-30
REPORT DATE: 2025-10-29
NEXT REPORT DATE: 2026-01-28
CASH FLOW  Begin Period Cash Flow $ 44.9 M
 Operating Cash Flow $ -9.42 M
 Capital Expenditures $ -609.00 K
 Change In Working Capital $ -13.34 M
 Dividends Paid $ -5.28 M
 Cash Flow Delta $ -2.17 M
 End Period Cash Flow $ 42.7 M
 
INCOME STATEMENT REVENUE
 Total Revenue $ 34.2 M
 Forward Revenue $ 896.3 K
COSTS
 Cost Of Revenue —
 Depreciation $ 1.8 M
 Depreciation and Amortization $ 1.8 M
 Research and Development —
 Total Operating Expenses —
PROFITABILITY
 Gross Profit —
 EBITDA —
 EBIT —
 Operating Income —
 Interest Income $ 28.3 M
 Interest Expense $ 19.9 M
 Net Interest Income $ 8.4 M
 Income Before Tax $ 18.0 M
 Tax Provision —
 Tax Rate —
 Net Income $ 15.1 M
 Net Income From Continuing Operations $ 18.0 M
EARNINGS
 EPS Estimate $ 0.01
 EPS Actual $ 1.01
 EPS Difference $ 1.00
 EPS Surprise 10000.0 %
 Forward EPS $ 0.21
 
BALANCE SHEET ASSETS
 Total Assets $ 1.7 B
 Intangible Assets $ 6.4 M
 Net Tangible Assets $ 426.5 M
 Total Current Assets —
 Cash and Short-Term Investments —
 Cash $ 40.9 M
 Net Receivables $ 22.2 M
 Inventory —
 Long-Term Investments —
LIABILITIES
 Accounts Payable $ 3.8 M
 Short-Term Debt —
 Total Current Liabilities —
 Net Debt $ 1.1 B
 Total Debt $ 1.2 B
 Total Liabilities $ 1.3 B
EQUITY
 Total Equity $ 432.9 M
 Retained Earnings $ -717.08 M
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share $ 58.66
 Shares Outstanding 7.381 M
 Revenue Per-Share $ 4.63
VALUATION
 Market Capitalization $ 147.9 M
 Enterprise Value $ 1.4 B
 Enterprise Multiple —
Enterprise Multiple QoQ —
Enterprise Multiple YoY —
Enterprise Multiple IPRWA —
 EV/R 40.421
CAPITAL STRUCTURE
 Asset To Equity 3.901
 Asset To Liability 1.346
 Debt To Capital 0.74
 Debt To Assets 0.731
Debt To Assets QoQ -1.955 %
Debt To Assets YoY -4.257 %
Debt To Assets IPRWA high: 1.393
ACR: 0.731
mean: 0.238
median: 0.178
low: 0.0
 Debt To Equity 2.85
Debt To Equity QoQ -10.556 %
Debt To Equity YoY -18.944 %
Debt To Equity IPRWA high: 4.041
ACR: 2.85
mean: 0.698
median: 0.398
low: -2.271
PRICE-BASED VALUATION
 Price To Book (P/B) 0.342
Price To Book QoQ 1.371 %
Price To Book YoY 25.987 %
Price To Book IPRWA high: 9.572
median: 3.633
mean: 3.011
ACR: 0.342
low: -2.525
 Price To Earnings (P/E) 19.836
Price To Earnings QoQ -110.847 %
Price To Earnings YoY -68.653 %
Price To Earnings IPRWA high: 359.312
mean: 115.539
median: 96.403
ACR: 19.836
low: -207.306
 PE/G Ratio -0.018
 Price To Sales (P/S) 4.326
Price To Sales QoQ -33.96 %
Price To Sales YoY -8.001 %
Price To Sales IPRWA high: 42.124
mean: 12.835
median: 4.502
ACR: 4.326
low: 0.022
FORWARD MULTIPLES
Forward P/E 42.333
Forward PE/G -0.038
Forward P/S 74.378
EFFICIENCY OPERATIONAL
 Operating Leverage —
ASSET & SALES
 Asset Turnover Ratio 0.019
Asset Turnover Ratio QoQ 60.28 %
Asset Turnover Ratio YoY 59.102 %
Asset Turnover Ratio IPRWA high: 0.542
mean: 0.19
median: 0.19
ACR: 0.019
low: 0.002
 Receivables Turnover 1.655
Receivables Turnover Ratio QoQ 32.762 %
Receivables Turnover Ratio YoY -12.84 %
Receivables Turnover Ratio IPRWA high: 30.203
mean: 3.872
median: 3.725
ACR: 1.655
low: 0.428
 Inventory Turnover —
Inventory Turnover Ratio QoQ —
Inventory Turnover Ratio YoY —
Inventory Turnover Ratio IPRWA —
 Days Sales Outstanding (DSO) 55.143
CASH CYCLE
 Cash Conversion Cycle Days (CCC) 55.143
Cash Conversion Cycle Days QoQ —
Cash Conversion Cycle Days YoY -99.285 %
Cash Conversion Cycle Days IPRWA high: 213.002
ACR: 55.143
mean: 12.061
median: 4.173
low: -232.925
CAPITAL DEPLOYMENT
 Cash Conversion Ratio —
 CapEx To Revenue -0.018
 CapEx To Depreciation -0.342
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital $ 1.6 B
 Net Invested Capital $ 1.6 B
 Invested Capital $ 1.6 B
 Net Tangible Assets $ 426.5 M
 Net Working Capital —
LIQUIDITY
 Cash Ratio —
 Current Ratio —
Current Ratio QoQ —
Current Ratio YoY —
Current Ratio IPRWA —
 Quick Ratio —
Quick Ratio QoQ —
Quick Ratio YoY —
Quick Ratio IPRWA —
COVERAGE & LEVERAGE
 Debt To EBITDA —
 Cost Of Debt 1.536 %
 Interest Coverage Ratio —
Interest Coverage Ratio QoQ —
Interest Coverage Ratio YoY —
Interest Coverage Ratio IPRWA —
 Operating Cash Flow Ratio —
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO) —
DIVIDENDS
 Dividend Coverage Ratio 2.854
 Dividend Payout Ratio 0.35
 Dividend Rate $ 0.72
 Dividend Yield 0.036
PERFORMANCE GROWTH
 Asset Growth Rate -7.131 %
 Revenue Growth 56.257 %
Revenue Growth QoQ 96.36 %
Revenue Growth YoY 179.163 %
Revenue Growth IPRWA high: 59.698 %
ACR: 56.257 %
median: 4.165 %
mean: 3.413 %
low: -61.164 %
 Earnings Growth -1110.0 %
Earnings Growth QoQ 1156.054 %
Earnings Growth YoY 1996.674 %
Earnings Growth IPRWA high: 161.538 %
median: 10.0 %
mean: 4.128 %
low: -200.0 %
ACR: -1110.0 %
MARGINS
 Gross Margin —
Gross Margin QoQ —
Gross Margin YoY —
Gross Margin IPRWA —
 EBIT Margin —
EBIT Margin QoQ —
EBIT Margin YoY —
EBIT Margin IPRWA —
 Return On Sales (ROS) —
Return On Sales QoQ —
Return On Sales YoY —
Return On Sales IPRWA —
CASH FLOW
 Free Cash Flow (FCF) $ -9.42 M
 Free Cash Flow Yield -6.369 %
Free Cash Flow Yield QoQ -177.899 %
Free Cash Flow Yield YoY -189.591 %
Free Cash Flow Yield IPRWA high: 19.492 %
mean: 1.664 %
median: 1.326 %
low: -6.355 %
ACR: -6.369 %
 Free Cash Growth -180.384 %
Free Cash Growth QoQ -48.998 %
Free Cash Growth YoY -909.078 %
Free Cash Growth IPRWA high: 718.027 %
median: 147.517 %
mean: 113.223 %
ACR: -180.384 %
low: -915.652 %
 Free Cash To Net Income -0.625
 Cash Flow Margin 32.17 %
 Cash Flow To Earnings 0.73
VALUE & RETURNS
 Economic Value Added —
 Return On Assets (ROA) 0.859 %
Return On Assets QoQ 239.526 %
Return On Assets YoY 116.373 %
Return On Assets IPRWA high: 3.419 %
ACR: 0.859 %
mean: 0.622 %
median: 0.617 %
low: -1.694 %
 Return On Capital Employed (ROCE) —
 Return On Equity (ROE) 0.035
Return On Equity QoQ 225.327 %
Return On Equity YoY 86.549 %
Return On Equity IPRWA high: 0.084
ACR: 0.035
mean: 0.02
median: 0.011
low: -0.027
 DuPont ROE 3.511 %
 Return On Invested Capital (ROIC) —
Return On Invested Capital QoQ —
Return On Invested Capital YoY —
Return On Invested Capital IPRWA —

Six-Week Outlook

Near term likely remains contested. Technicals show mixed signals — directional indicators favor sellers while MACD and MRO display early bullish reversals — producing a choppy environment where price should test resistance in the $20.4 area (superTrend upper and near short‑term moving averages) and find support around the $19.2 intraday lows. Low volatility and compressed Bollinger bands point to range trading until momentum indicators produce a decisive confirmation. Given the company’s elevated leverage and negative free cash flow, any sustained upside will require visible improvement in cash generation or clear funding efficiency gains from recent CLO and managed‑facility transactions.

About ACRES Commercial Realty Corp

ACRES Commercial Realty Corp. (NYSE:ACR) is a prominent real estate investment trust (REIT) that focuses on the origination, management, and investment of commercial real estate mortgage loans and equity interests throughout the United States. The company’s diverse portfolio includes floating-rate first mortgage loans, mezzanine financing, preferred equity investments, and commercial mortgage-backed securities, positioning it as a versatile player in the commercial real estate sector. By leveraging its REIT status, ACRES Commercial Realty Corp. benefits from a tax-efficient structure, distributing at least 90% of its taxable income to shareholders, thus enhancing investor returns. Originally known as Exantas Capital Corp., the company rebranded in February 2021 to better reflect its strategic focus on commercial real estate. Headquartered in Uniondale, New York, ACRES Commercial Realty Corp. was founded in 2005 and has since established itself as a key contributor to the U.S. commercial real estate market, offering innovative financing solutions and investment opportunities. With a commitment to growth and value creation, the company continues to adapt to the evolving market landscape, ensuring robust performance and sustainable returns for its stakeholders.



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