ACRES Commercial Realty: Buybacks And A 25% Discount To Book Value

2025-09-02 17:15:10 ET

ACRES Commercial Realty ( ACR ) has been a remarkable compounder of wealth, in lieu of a dividend, over the last year as the mortgage REIT embarked on a sustained campaign of share buybacks that has slimmed its weighted average shares outstanding. This figure is down 31% over the last five years. However, the absence of a dividend and the significant slimming of the discount to book value have kept me on the sidelines, unchanged from when I last covered the mREIT. What would change this position is a positive outlook for ACR's book value growth, a possible ramp-up of free cash flow ((FCF)), and an expansion of the mREIT's broad commercial real estate portfolio on a pickup of loan origination volume. Critically, the percentage of ACR's loan portfolio that is current on payments has to drift back up from what's currently 91.4% , down from 94% a year ago. ...

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