2024-04-08 00:10:06 ET
Summary
- ACRES Commercial Realty is trading at a material discount to GAAP book value per share of $26.65 at the end of its fiscal 2023 fourth quarter.
- The mREIT's focus on multifamily loans means it's less exposed to office real estate as implied by the discounting of the commons.
- ACR's Series C preferreds are set to float at a materially higher coupon in a few months.
ACRES Commercial Realty's ( ACR ) remarkable discount to its book value remains steep even after its 50% 1-year rally. The commercial mortgage REIT last reported a GAAP book value per share of $26.65 at the end of its fiscal 2023 fourth quarter, this was a sequential increase of $1.58 per share primarily on the back of the mREIT's stock buyback program that saw its weighted average number of outstanding shares end the fourth quarter dip 2.78% year-over-year to 8,566,058. ACR at its current $14.09 stock price is swapping hands at a significant 47% discount to book value. The program has roughly $9.8 million left after the buyback authorization was expanded by $10 million in November....
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ACRES Commercial Realty: The Discount To Book Value Is Too Much