ACR - ACRES Commercial Realty: Stock Buybacks Continue As Commons Discount Remains Sticky
2025-06-16 08:14:30 ET
ACRES Commercial Realty Corp. ( ACR ) suspended its dividends to common shareholders at the onset of the pandemic in 2020, bringing an end to what had been continuous dividend payments since the mortgage REIT went public in 2006. Price returns from the CRE lender since the suspension has been positive on the back of a stock repurchase program that has entirely supplanted dividends as the primary source of capital return to shareholders. The mREIT repurchased 220,000 common shares for an aggregate cost of $4.4 million during its fiscal 2025 first quarter at a 30% discount to book value or for roughly 70 cents on the dollar. This drove a 28 cents per share accretion to book value per share during the first quarter. I last covered ACR with a buy rating, with the commons dipping since then to expand on the sticky discount to book value. The mREIT's two preferreds, the 8.625% Fixed-to-Floating Series C preferreds, ACRES Commercial Realty Corp. 8.625% CUM PFD C ( ACR.PR.C ) and the 7.875% Series D preferreds, ACRES Commercial Realty Corp. 7.875% CUM RED PRF SER D ( ACR.PR.D ) both offer an income alternative to the commons....
ACRES Commercial Realty: Stock Buybacks Continue As Commons Discount Remains Sticky