ACR

Image source: The Motley Fool. Thursday, July 30, 2026 at 10 a.m. ET Vice President of Operations - Kyle K. Brengel President and Chief Executive Officer - Mark Steven Fogel Chairman - Andrew Fentress Chief Financial Officer - Eldron C. Blackwell Operator: Morning, ladies and gentlemen, and welcome to the Second Quarter 26 Acres Commercial Realty Corp. Earnings Call. And answer session with instructions to follow at that time. And as a reminder, this call is being recorded. I would now like to introduce your host for today's conference, Kyle K. Brengel, Vice President of Operations. Please go ahead, sir. Kyle K. Brengel: Good morning, and thank you for joining our call. I would like to highlight that we have posted the second quarter 26 earnings presentation to our website. This presentation contains summary and detailed information about the quarterly results of the company. Before we begin, I want to remind everyone that certain statements made during this call are not based on historical information and may constitute forward-looking statements. Used in this conference call, the words believes, anticipates, expects, and similar expressions are intended to identify forward-looking statements. Although the company believes these forward-looking statements are based on reasonable assumptions, such statements are based on management's current expectations and beliefs, and are subject to several trends, risks, and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These risks and uncertainties are discussed in the company's reports filed with the SEC including its reports on Forms 8-Ks, 10 Q, and 10 ks. And in particular, the risk factor section of its Form 10-K. Listeners are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. The company undertakes no obligation to update any of these forward-looking statements. Furthermore, certain non GAAP financial measures may be discussed on this conference call. A presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Reconciliations of non GAAP financial measures to the most comparable measures prepared in accordance with generally accepted accounting principles are contained in the earnings presentation for the quarter. With me on the call today are Mark Steven Fogel, President and CEO; Andrew Fentress, Chairman of ACR and Eldron C. Blackwell, ACR's CFO. Will now turn the call over to Mark. Mark Steven Fogel: Good morning, everyone, and thank you for joining our call. Today, I will provide an overview of our loan operations, real estate investments, and the health of the investment portfolio while Eldron C. Blackwell, our CFO, will discuss financial statements, liquidity condition, book value, and operating results for the second quarter of 2026. Of course, we look forward to your questions at the end of our prepared remarks. The ACRES team continues to actively manage the portfolio and has seen operations improving on underperforming assets. We are selective on the opportunities we pursue and the loans we originate. We still anticipate meeting our target $500 million of net growth in the REIT for 2026. We spoke to our Annual Shareholders Meeting last month at which time we proposed a share issuance in accordance with a merger agreement we entered into with our manager, the result of which will be the internalization of the management function of our manager. We are very pleased that approximately 99% of the votes cast on the proposal to issue shares as part of the internalization transaction were cast in favor of the proposal. The Acres team has been working hard on the internalization and anticipates that closing will take place in short order. We look forward to providing more updates as we complete the transaction. Loan payoffs and paydowns during the period were $92.7 million and funded commitments during the quarter were $17.8 million producing a net decrease to the loan portfolio of $74.9 million Portfolio generally continues to perform demonstrating sound and consistent underwriting and proactive asset management. At June 30, our weighted average risk rating was 2.6, an increase from 2.5 at March 31 and the number of loans rated 4 or 5 was 10, the same as the end of the first quarter. The portion of our CRE loan portfolio rated 4 or 5 based on the company's economic value was 14% at both June 30 and March 31. We will now have ACR's CFO, Eldron C. Blackwell, discuss the financial statements and operating results during the second quarter. Eldron C. Blackwell: Thank you, and good morning, everyone. GAAP net loss allocable to common shares in the second quarter was $12.5 million or $1.87 per share. GAAP net loss for the quarter included $5.1 million of internalization transaction costs, $4 million of incremental compensation expense from the accelerated vesting of restricted stock in connection with the pending internalization transaction. Transaction costs for the pending internalization transaction are expensed as incurred in accordance with generally accepted accounting principles. As such, we expect additional transaction related costs to be recognized in the third quarter as we diligently work to close the deal. GAAP net loss for the quarter also included $10.5 million in net interest income which was an increase of $1.3 million over the prior quarter. This increase in net interest income was primarily driven by the full quarter's impact of our new CRE securitization. GAAP net loss for the quarter also included $1.1 million of net increase in the performance of our net real estate operation. We saw an increase in current expected credit loss or CECL reserves of $1.7 million or $0.25 per share as compared to a decrease in CECL reserves during the first quarter of $1 million, which was primarily driven by a decline in projected macroeconomic factors. The total allowance for credit losses at June 30 was $21.1 million, which represented 0.99% or 99 basis points on our $2.1 billion loan portfolio at par and was composed entirely of general credit reserves. EAD for the second quarter 26 was a loss of $0.74 per share as compared to an EAD gain of $0.02 per share for the first quarter. EAD loss was primarily driven by $5.5 million in internalization transaction costs recognized during the quarter and the recognition of $984 thousand of accelerated deferred debt costs on 1 of our debt facilities during the quarter. Without these costs, EAD would have been $0.14 for the quarter. GAAP book value per share was $26.76 on June 30 versus $29.98 on March 31 driven by the vesting of restricted stock, transaction costs, and deferred debt costs this quarter. Available liquidity at June 30 was $83 million which comprised $41 million of unrestricted cash and $42 million of projected financing available on unlevered assets. Our GAAP debt to equity and leverage ratio decreased to 3.2x at June 30 from 3.4x at March 31, due to primarily net repayments on our CRE loan portfolio. At June 30, 2026, the company had total gross net operating loss carry forwards of $94.1 million or approximately $6.30 Per share of book of value that can be offset against the future net income generating activities of the company. With that, I will now turn the call to Andrew Fentress for closing remarks. Andrew Fentress: Thank you, Eldron and Mark. First, I want to thank all of our shareholders for voting in favor of the transaction this June. The entire team is highly motivated by your confidence, and we are committed to working to deliver on our goal of growing value for our shareholders over the long term. Pro forma for the closing of the transaction Acres employees will own 40-plus percent of ACR common stock. We are directly aligned with you. As you are aware, the combined company will have 2 primary sources of revenue that we will continue to focus on as we go forward, and we intend to provide you with as much transparency around the key metrics as possible so that you know what we are focused on and that our efforts can be measured over time. We ask for your patience as we transition the reporting from simply a REIT balance sheet to 1 that also includes additional fee related revenues. Nothing about our business is changing. We will continue to originate, underwrite, and asset manage quality assets in quality markets with quality sponsors. We do this by staying focused on serving our borrowers and delivering them the service and capital that they need. We chose this time for the transaction because we see ample opportunity to grow. Stay tuned as we expect to share more with you in the coming weeks about the progress of the transaction. Thank you for your continued support, and I look forward to speaking with all of you. This concludes our opening remarks. I will now turn the call back over to the operator for questions. Operator: Thank you, Mr. Star 1. If you find that your question has been addressed, you may remove yourself from the queue by pressing 2. Once again, that is Star 1 for questions. We will go first this morning to Matthew Erdner of Jones Trading. Please go ahead. Matthew Erdner: Hey. Good morning, guys. Thanks for taking the question. I would like to talk about the loan portfolio and kind of what you guys are seeing from the pipeline and kind of that path to that $500 million net growth that you talked about, where you guys kind of see that shaking out over the next couple of quarters? Mark Steven Fogel: Thanks, Matthew. This is Mark. The pipeline is actually stronger than ever. there is a lot of opportunity out there and we are, you know, analyzing the best opportunities to put into the portfolio. I think that what we are seeing in the market today is a lot of capitulation. People are starting to sell assets, realizing that potentially they might not recover all of their equity. We are starting to see a lot of sales happening, acquisitions. And we are getting the benefit of a good look at some really quality opportunities with good sponsors. Matthew Erdner: Awesome. that is good to know. And then I guess, looking into the internalization, are there any, I guess, 1-time expenses that you guys are expecting that we should kind of think about as this process continues or as you guys begin to integrate? Mark Steven Fogel: Yeah. There are going to be some 1-time expenses. We incurred some of them in the quarter. As you probably are aware, GAAP requires us to record expenses as they get created, so that is why some of them showed up in Q2. Analyst: There will be some additional expenses that show up in Q3. Matthew Erdner: Got it. And then I guess from a modeling perspective, we kind of look at that as a similar to the second quarter? Mark Steven Fogel: Sorry. Say that 1 again? Matthew Erdner: From a modeling perspective, should we think about it? Are those 1-time expenses running similarly to what we saw this quarter? Mark Steven Fogel: No. They will be lower in the third quarter. that is all. The 1-time transaction related. Charges from an expense standpoint. Yeah. Okay. Perfect. that is helpful there. Matthew Erdner: And then last 1 for me. Could you talk a little bit about the bridge on slide 22 from you know, the externally managed to the 20 or 2.7 billion number. Is that largely from that warehouse financing that you guys are able to pull down right now and start issuing or originating on? Mark Steven Fogel: No. That is largely a function of existing equity dollars that are in the portfolio or that are in the portfolio that are going to be sold and converted from equity into loan book. Matthew Erdner: Got it. that is helpful. Thank you, guys. Mark Steven Fogel: Thank you. Operator: We will go next now to Christopher Muller of Citizens Capital Markets. Christopher Muller: Hey, guys. Thanks for taking the questions. Maybe picking up on that last line of questioning. Mark Steven Fogel: So I guess looking at the hypothetical EAD post merger, it looks like the AUM fees are the key between those different case scenarios there. I guess, what is the main driver behind the AUM fees that you guys would have control over to push it between case 1 up to case 3? Mark Steven Fogel: So this is AUM and fees related to a Evergreen Fund vehicle, separate accounts, and new fund products that are in our pipeline at Acres. Analyst: So we have pretty good visibility on these numbers. Christopher Muller: And what would push it towards that $48 million versus to the $73 million in those different case scenarios? Additional AUM growth in those products. Mark Steven Fogel: So separate account open and closed end fund vehicles. Christopher Muller: Got it. So it is just growing the AUM base. That makes sense? And I guess maybe changing gears a little bit. Mark Steven Fogel: On the I think you have 2 REO properties left. and I guess 1, is there any updates on timing for potential sales you guys could share with us there? Christopher Muller: And I guess, the other 1, 1 of the hotels looks like it is been held for sale since 2022. Has that been listed for sale in the market since 2022, or is that just the accounting treatment of the asset? Mark Steven Fogel: It has been listed for sale and various reasons, including labor strikes, in that market. it is been difficult to sell. it is actually back on the market right now. And, again, we are being held up a little bit by not having a contract with a labor union, and it is difficult to sell the asset when yeah, you cannot project the expenses on a go forward basis for labor. So yes, we are actively trying to sell it, but it is difficult to find a buyer until there is some commitment on the side of the union. Christopher Muller: Got it. Appreciate you guys taking the questions today, and I look forward to this internalization closing, hopefully, in the next couple weeks. Mark Steven Fogel: Thank you, Christopher. Excellent. Christopher Muller: Thank you very much. Mark Steven Fogel: Thank you. Operator: And just a quick reminder, ladies and gentlemen, any further questions this morning, please press 1 at this time. And we will pause for just 1 moment. And, gentlemen, it appears we have no further questions coming in this morning, Mr. Fentress. I would like to turn things back to you, sir, for any closing comments. Andrew Fentress: Thank you, everyone, for the time today. We look forward to being in touch. As the transaction announcements continue to roll out over the next several weeks. Operator: Thank you, gentlemen. Again, ladies and gentlemen, that will conclude today's Second Quarter 26 Acres Commercial Realty Corp. Earnings Call. Again, thanks so much for joining us, everyone, and we wish you all a great day. Goodbye. Before you buy stock in Acres Commercial Realty, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Acres Commercial Realty wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. ACRES (ACR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in ACRES Commercial Realty Corp.? Here are five stocks we like better. ACRES reported a $12.5 million GAAP net loss, or $1.87 per share, largely due to $5.1 million in manager-internalization costs and $4 million in accelerated compensation expense. Additional transaction costs are expected in the third quarter. The loan portfolio declined by $74.9 million as payoffs and paydowns exceeded funded commitments, although management described the lending pipeline as stronger than ever and maintained its goal of $500 million in net REIT growth for 2026. The manager-internalization deal is nearing completion after receiving about 99% approval of votes cast, while second-quarter net interest income rose to $10.5 million. However, credit-loss reserves increased by $1.7 million, and book value per share fell to $26.76 from $29.98. ACRES Commercial Realty (NYSE:ACR) reported a second-quarter 2026 GAAP net loss allocable to common shareholders of $12.5 million, or $1.87 per share, as costs tied to its planned manager internalization weighed on results. Chief Financial Officer Eldron Blackwell said the quarter included $5.1 million in internalization transaction costs and $4 million of incremental compensation expense related to accelerated vesting under the pending transaction. The company expects to recognize additional transaction-related expenses in the third quarter as it works to close the deal, though Chairman Andrew Fentress said those one-time charges should be lower than in the second quarter. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Despite the reported loss, management said it continues to see lending opportunities and remains on track toward its goal of $500 million in net REIT growth during 2026. During the quarter, loan payoffs and paydowns totaled $92.7 million, while funded commitments were $17.8 million. The activity resulted in a $74.9 million net decline in the loan portfolio. → Microsoft Just Flipped the AI Spending Narrative Overnight President and CEO Mark Fogel said the portfolio generally continued to perform and reflected the company’s underwriting and asset-management efforts. At June 30, ACRES had a weighted average risk rating of 2.6, compared with 2.5 at March 31. The company had 10 loans rated four or five, unchanged from the end of the first quarter. The share of the commercial real estate loan portfolio rated four or five, based on ACRES’ economic interest, remained 14% at both quarter-end dates. → Carrier Earnings Could Send the Stock to a New All-Time High Fogel told analysts that the lending pipeline was “stronger than ever,” citing a market environment in which some asset owners are selling properties after concluding they may not recover all of their equity. He said this has created opportunities for ACRES to evaluate potentially higher-quality transactions with established sponsors. “We’re analyzing the best opportunities to put into the portfolio,” Fogel said. ACRES is pursuing a transaction to internalize its external manager. Fogel said approximately 99% of votes cast on the related share-issuance proposal were in favor of the transaction. The company expects the closing to occur “in short order,” according to management. Fentress said ACRES employees are expected to own more than 40% of the company’s common stock on a pro forma basis after closing. He said the combined company will have two primary revenue sources and that management intends to provide additional transparency on fee-related revenue metrics as reporting transitions from a REIT-focused balance sheet presentation. During the question-and-answer session, Fentress said a presentation bridge to a $2.7 billion figure was largely driven by existing equity dollars in the portfolio that are expected to be sold and converted into the loan book, rather than warehouse financing capacity. He also said potential assets under management and fee revenue would be supported by growth in an evergreen fund vehicle, separate accounts and new fund products in ACRES’ pipeline. Additional AUM growth across open- and closed-end fund vehicles would determine the range of outcomes discussed in the company’s presentation, he said. Blackwell said second-quarter GAAP results included $10.5 million of net interest income, an increase of $1.3 million from the prior quarter. The increase was primarily attributable to the full-quarter impact of a new commercial real estate securitization. The company also recorded a $1.1 million net increase in the performance of its net real estate operations. However, ACRES increased its current expected credit loss, or CECL, reserves by $1.7 million, equal to $0.25 per share. That compared with a $1 million reduction in CECL reserves during the first quarter, which Blackwell said had been driven primarily by lower projected macroeconomic factors. Total allowance for credit losses stood at $21.1 million at June 30, representing 0.99%, or 99 basis points, of the company’s $2.1 billion loan portfolio at par. The allowance consisted entirely of general credit reserves. Second-quarter EAD was a loss of $0.74 per share, compared with a gain of $0.02 per share in the first quarter. Management said EAD was affected by $5.5 million of internalization transaction costs and $984,000 of accelerated deferred debt costs on a debt facility. Excluding those costs, Blackwell said EAD would have been $0.14 per share for the quarter. GAAP book value per share was $26.76 at June 30, down from $29.98 at March 31. Blackwell attributed the decline to restricted-stock vesting, transaction costs and deferred debt costs incurred during the quarter. Available liquidity was $83 million at quarter-end, consisting of $41 million of unrestricted cash and $42 million of projected financing available on unlevered assets. The company’s GAAP debt-to-equity leverage ratio declined to 3.2 times from 3.4 times at the end of the first quarter, primarily reflecting net repayments in the CRE loan portfolio. ACRES also reported total gross net operating loss carryforwards of $94.1 million at June 30, which Blackwell said equated to approximately $6.36 per share of book value and could offset future net income-generating activities. On real estate owned assets, Fentress said a hotel that has been held for sale since 2022 is again on the market. He said labor-union negotiations have complicated a potential sale because prospective buyers have had difficulty projecting future labor expenses without an agreement in place. ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and equity investments in commercial real estate property in the United States. It invests in commercial real estate-related assets, including floating-rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine financing, preferred equity investments, and commercial mortgage-backed securities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ACRES Commercial Realty Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. GAAP Net Loss: $12.5 million, or $1.87 per share, for the second quarter of 2026. Net Interest Income: $10.5 million, an increase of $1.3 million from the prior quarter. Net Real Estate Operations: $1.1 million net increase in performance. CECL Reserves: Increased by $1.7 million, or $0.25 per share, compared to a decrease of $1 million in the first quarter. Total Allowance for Credit Losses: $21.1 million, representing 0.99% (99 basis points) on the $2.1 billion loan portfolio at par. EAD (Economic Accretion/Dilution): Loss of $0.74 per share, compared to a gain of $0.02 per share in the first quarter. GAAP Book Value per Share: $26.76 as of June 30, 2026, down from $29.98 as of March 31, 2026. Available Liquidity: $83 million as of June 30, 2026, consisting of $41 million in unrestricted cash and $42 million in projected financing on unlevered assets. GAAP Debt to Equity Ratio: 3.2 times as of June 30, 2026, down from 3.4 times as of March 31, 2026. Net Operating Loss Carryforwards: $94.1 million, or approximately $6.36 per share of book value. Loan Payoffs and Paydowns: $92.7 million during the quarter. Funded Commitments: $17.8 million during the quarter. Net Decrease to Loan Portfolio: $74.9 million. Weighted Average Risk Rating: 2.6 as of June 30, 2026, up from 2.5 as of March 31, 2026. Loans Rated 4 or 5: 10 loans, unchanged from the end of the first quarter. Portion of CRE Loan Portfolio Rated 4 or 5: 14% as of both June 30 and March 31, 2026. Warning! GuruFocus has detected 1 Warning Sign with ACR. Is ACR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Shareholders overwhelmingly approved the internalization of the external manager, aligning management with shareholders. The loan pipeline is stronger than ever, with ample opportunities from market capitulation and asset sales. Net interest income increased by $1.3 million quarter-over-quarter, driven by the new CRE securitization. The company maintains a strong liquidity position with $83 million available at quarter end. Pro forma for the internalization, employees will own over 40% of ACR common stock, ensuring direct alignment with shareholders. GAAP net loss allocable to common shares was $12.5 million, or $1.87 per share, due to transaction costs and compensation expenses. The weighted average risk rating on the loan portfolio increased from 2.5 to 2.6, indicating slight deterioration. Loan payoffs and paydowns exceeded fundings, resulting in a net decrease of $74.9 million in the loan portfolio. EAD was a loss of $0.74 per share, impacted by $5.5 million in internalization transaction costs and accelerated debt costs. GAAP book value per share declined from $29.98 to $26.76, driven by restricted stock vesting and transaction costs. Q: Can you talk about the loan portfolio pipeline and the path to the $500 million net growth target for 2026?A: Mark Fogel (President and CEO): The pipeline is actually stronger than ever. There is a lot of opportunity out there. We are seeing a lot of capitulation in the market, with people starting to sell assets and realizing they might not recover all of their equity. This is giving us a good look at some quality opportunities with good sponsors. Q: Regarding the internalization, are there any one-time expenses we should expect as the process continues?A: Andrew Fentress (Chairman of the Board): Yes, there will be some one-time expenses. We incurred some in Q2, as GAAP requires us to record expenses as they are created. There will be additional expenses in Q3, but they will be lower than what we saw in the second quarter. Q: Can you explain the bridge on slide 22 from the externally managed to the $2.7 billion number? Is that largely from warehouse financing?A: Andrew Fentress (Chairman of the Board): No, that is largely a function of existing equity dollars in the portfolio that are going to be sold and converted from equity into the loan book. Q: What is the main driver behind the AUM fees that would push the hypothetical EAD post-merger between the different case scenarios?A: Andrew Fentress (Chairman of the Board): The AUM fees are related to an Evergreen fund vehicle, separate accounts, and new fund products in our pipeline at ACRS. We have good visibility on these numbers. Pushing towards the higher end of the range would require additional AUM growth in those products, such as separate accounts and open and closed-end fund vehicles. Q: Do you have any updates on the timing for the potential sale of the two remaining REO properties? One hotel has been held for sale since 2022.A: Mark Fogel (President and CEO): The hotel has been listed for sale, but it has been difficult to sell for various reasons, including labor strikes in that market. It is back on the market now, but we are being held up by not having a contract with a labor union. It is difficult to sell the asset when you can't project the labor expenses on a go-forward basis. We are actively trying to sell it, but it's difficult to find a buyer until there is some commitment from the union. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

UNIONDALE, N.Y., July 29, 2026 /PRNewswire/ -- ACRES Commercial Realty Corp. (NYSE: ACR) ("ACR" or the "Company"), a real estate investment trust that is primarily focused on originating, holding and managing commercial real estate mortgage loans and equity investments in commercial real estate property through direct ownership and joint ventures, today reported results for the quarter ended June 30, 2026. ACR's GAAP net loss allocable to common shares was $12.5 million or $(1.87) per share-diluted, for the quarter ended June 30, 2026. "The ACRES team continues to be proactive in managing our investments. Our pipeline for new loan opportunities is healthy, and we will selectively add quality assets and sponsors to our portfolio," said ACRES Commercial Realty Corp. President & CEO Mark Fogel. "The team has been working diligently on the previously announced internalization, which we anticipate closing in short order with the goal of enhancing shareholder value." ACR issued a full, detailed presentation of its results for the quarter ended June 30, 2026 that can be viewed at www.acresreit.com. Earnings Call Details ACR will host a live conference call on July 30, 2026 at 10:00 a.m. Eastern Time to discuss its second quarter 2026 operating results. The conference call can be accessed by dialing 1-800-274-8461 (U.S. domestic) or 1-203-518-9814 (International), Conference ID ACRES or from the investor relations section of the Company's website at www.acresreit.com. For those unable to listen to the live conference call, a replay will be available on the Company's website and telephonically through August 13, 2026 by dialing 1-844-512-2921 (U.S. domestic) or 1-412-317-6671 (International), with the passcode 11161827. About ACRES Commercial Realty Corp. ACRES Commercial Realty Corp. is a real estate investment trust that is primarily focused on originating, holding and managing commercial real estate mortgage loans and equity investments in commercial real estate properties through direct ownership and joint ventures. The Company is externally managed by ACRES Capital, LLC, a subsidiary of ACRES Capital Corp., a private commercial real estate lender exclusively dedicated to nationwide middle market commercial real estate lending with a focus on multifamily, student housing, hospitality, industrial and office property in top U.S. markets. For more information, please visit the Company's website at www.acresreit.com or contact investor relations at [email protected]. Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "continue," "expect," "intend," "anticipate," "estimate," "believe," "look forward" or other similar words or terms. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. Factors that can affect future results are discussed in the documents filed by the Company from time to time with the Securities and Exchange Commission, including, without limitation, factors impacting whether we will be able to maintain our sources of liquidity and whether we will be able to identify sufficient suitable investments to increase our originations. The Company undertakes no obligation to update or revise any forward-looking statement to reflect new or changing information or events after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law. View original content to download multimedia:https://www.prnewswire.com/news-releases/acres-commercial-realty-corp-reports-results-for-second-quarter-2026-302837918.html

Annaly Capital Management (NLY) came out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.73 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.33%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.74 per share when it actually produced earnings of $0.76, delivering a surprise of +2.7%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Annaly, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $488.19 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 4.09%. This compares to year-ago revenues of $273.2 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Annaly shares have added about 1.5% since the beginning of the year versus the S&P 500's gain of 8.7%. While Annaly has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Annaly was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.76 on $512 million in revenues for the coming quarter and $3.02 on $1.99 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, ACRES Commercial (ACR), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 29. This commercial real estate investment trust is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +175%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. ACRES Commercial's revenues are expected to be $12.3 million, up 43.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Annaly Capital Management Inc (NLY) : Free Stock Analysis Report ACRES Commercial Realty Corp. (ACR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

UNIONDALE, N.Y., May 27, 2026 /PRNewswire/ -- ACRES Commercial Realty Corp. (NYSE: ACR) (the "Company") announced today that its Board of Directors declared cash dividends on its Preferred Stock. The Company will pay a cash dividend on its 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock ("Series C Preferred Stock") in the amount of $0.5993994 per share, which reflects a rate of 9.59039%, equal to three-month Term SOFR on the dividend determination date plus a spread of 5.927% per annum. The dividend will be payable on July 30, 2026, to holders of record on July 1, 2026. The Company will also pay a cash dividend on its 7.875% Series D Cumulative Redeemable Preferred Stock in the amount of $0.4921875 per share. The dividend will be payable on July 30, 2026, to holders of record on July 1, 2026. About ACRES Commercial Realty Corp. ACRES Commercial Realty Corp. is a real estate investment trust that is primarily focused on originating, holding and managing commercial real estate mortgage loans and may hold equity investments in commercial real estate properties through direct ownership and joint ventures. The Company is externally managed by ACRES Capital, LLC, a subsidiary of ACRES Capital Corp., a private commercial real estate lender exclusively dedicated to nationwide middle market CRE lending with a focus on multifamily, student housing, hospitality, industrial and office property in top U.S. markets. For more information, please visit the Company's website at www.acresreit.com or contact investor relations at [email protected]. Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "trend," "will," "continue," "expect," "intend," "anticipate," "estimate," "believe," "look forward" or other similar words or terms. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. Factors that can affect future results are discussed in the documents filed by the Company from time to time with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statement to reflect new or changing information or events after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law. View original content to download multimedia:https://www.prnewswire.com/news-releases/acres-commercial-realty-corp-declares-quarterly-cash-dividends-for-its-preferred-stock-302783317.html

Management successfully executed its strategy to drive book value through high-quality loan originations, aggressive portfolio management, and opportunistic real estate sales. The company realized a $3.3 million gain from a real estate investment sale in Philadelphia, continuing a trend of recycling capital from property developments back into the core loan book. Portfolio leverage was intentionally increased to 3.4x following the closing of a $1 billion CRE securitization, fulfilling a stated objective to expand the loan portfolio size. The loan portfolio grew to $2.2 billion across 60 investments, with over half of the portfolio protected by SOFR floors exceeding 3% to mitigate impact from declining interest rates. Credit quality showed improvement as the weighted average risk rating decreased to 2.5, with the portion of the portfolio rated 4 or 5 dropping to 14% of economic interest. Net interest income saw a temporary decrease due to the ramp-up period of the new securitization and lower fee recognition from loan payoffs. The company is pursuing a merger and internalization to transform into a 'dirt-to-perm' middle-market financing platform with a roughly $5 billion total reach. Management expects the fully invested FL4 securitization to reach its full run-rate benefit starting in the second quarter of 2026. The pro forma company will act as a registered investment adviser, allowing asset management fees from external funds to flow directly to the public entity's earnings. Future capital raises are intended to be accretive, with management targeting share issuances only at or above book value. The strategic shift aims to deliver a sector-leading return profile through consistent dividends supported by non-balance sheet-related revenue streams. The internalization transaction is scheduled for a shareholder vote on June 22, 2026, with an expected close in July. Post-merger, ACRES employees and board members will become the largest shareholders, holding over a 40% interest in the company. CECL reserves decreased by $1 million during the quarter, primarily due to improved macroeconomic projections despite an increase in modeled credit risk. The company maintains $32.1 million in net operating loss carryforwards, representing approximately $4.89 per share in potential tax assets. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management cited positive firm momentum and the relative size of the two companies as the primary reasons for combining now. The merger is expected to drive non-balance sheet revenue from asset management activities, which will be available to support higher Earnings Available for Distribution (EAD). The company considers itself 'fully invested' at current liquidity levels. The strategy involves driving a dividend to reach a valuation that allows for accretive equity issuance to fund further growth. Management intends to pay dividends as they are earned, with a clear picture of earnings power expected immediately following the combination. The pro forma structure allows for higher dividends without increasing balance sheet leverage by utilizing fee-based income. Management expressed comfort with a total leverage ratio of approximately 4.0x. The company presented scenarios showing that 3.5x leverage could support dividends ranging from mid-single digits to mid-teens depending on fee income assumptions. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

ACRES completed the $1 billion ACRES 2026-FL4 securitization (86.5% leverage at SOFR+1.68%), which helped increase GAAP leverage from 2.8x to 3.4x and coincided with a net loan‑portfolio increase of $374.4 million to $2.2 billion (weighted spread ~3.29%). Management is pursuing an internalization transaction to be voted on at the annual meeting on June 22 with expected close in July, which would make the firm the public RIA for an existing asset‑management business and add non‑balance‑sheet fee revenue that management says could support higher dividends without raising balance‑sheet leverage. Q1 results included a GAAP net loss of $1.0 million (‑$0.16/share) but earnings available for distribution of $0.02 per share, GAAP book value of $29.98, available liquidity of $87 million, and an allowance for credit losses of $19.4 million (0.88% of loans). Interested in ACRES Commercial Realty Corp.? Here are five stocks we like better. ACRES Commercial Realty (NYSE:ACR) executives used the company’s first-quarter 2026 earnings call to highlight growth in its commercial real estate loan portfolio, the closing of a new $1 billion securitization, and a pending internalization transaction that management said could add non-balance-sheet earnings streams to support future dividends. President and CEO Mark Fogel said the company continued executing a strategy it has pursued since acquiring the ACR management contract in 2020, which he described as focusing on originating “high-quality loans,” aggressively managing the portfolio, repurchasing stock, and using tax assets. → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss Fogel said the company completed a new securitization during the quarter: ACRES 2026-FL4, a $1 billion CRE securitization with 86.5% leverage at SOFR plus 1.68% and a 30-month reinvestment period. He said the company completed ramp-up investments during the first quarter and expects to “see the full run rate benefit of the transaction in the second quarter.” Fogel also said the securitization contributed to a higher leverage profile in line with prior objectives. The company’s GAAP leverage increased from 2.8x at December 31 to 3.4x at March 31, which he said was a stated objective “to increase portfolio leverage and the size of the CRE loan portfolio.” → Is Oracle Undervalued as Cloud Growth Accelerates? On origination activity, Fogel said the company closed new commitments of $495.6 million during the quarter, which were partially offset by loan payoffs and net unfunded commitments totaling $121.2 million, producing a net increase to the loan portfolio of $374.4 million. The weighted average spread on newly originated loans was 3.09%, he said. As of March 31, Fogel said the loan portfolio totaled $2.2 billion across 60 investments, with a spread of 3.29% over one-month Term SOFR. He added that more than half of the portfolio has SOFR floors above 3%, which he described as providing yield protection in a declining base-rate environment. → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? Fogel said the portfolio “generally continues to perform,” attributing results to underwriting and “proactive asset management.” He noted the weighted average risk rating improved to 2.5 at March 31 from 2.7 at December 31. The number of loans rated four or five was 10, unchanged from the end of the fourth quarter. He also said that, based on the company’s economic interest, the share of the CRE loan portfolio rated 4 or 5 was 14% at March 31, down from 17% at December 31. Fogel said the company sold a real estate investment in the Greater Philadelphia area during the quarter, resulting in a $3.3 million GAAP and EAD gain. He framed the sale as part of the company’s broader real estate investment strategy, referencing prior transactions including “the sale of an office building in 2024” and a student housing development and sale in Florida. Chief Financial Officer Eldron C. Blackwell reported that GAAP net loss allocable to common shares in the first quarter was $1 million, or $0.16 per share. Blackwell said results included $9.3 million in net interest income, down $1.4 million from the prior quarter. He attributed the decrease primarily to the ramp-up period for the new securitization and lower fee recognition from loan payoffs, reiterating the expectation for a full run-rate impact in the second quarter. Blackwell said the quarter also included: A $1.3 million net decrease in the performance of net real estate operations, resulting in a net loss of $1.2 million A $3.3 million net gain on the previously mentioned land sale On credit reserves, Blackwell said the company recorded a $1 million decrease in current expected credit loss (CECL) reserves, or $0.15 per share. He said the change was “primarily driven by improvements in projected macroeconomic factors,” partially offset by “an increase in the model credit risk of the company’s loan portfolio.” At March 31, Blackwell said the total allowance for credit losses was $19.4 million, representing 0.88% (88 basis points) of the $2.2 billion loan portfolio at par, and was “composed entirely of general credit reserves.” Blackwell reported earnings available for distribution (EAD) of $0.02 per share for the first quarter of 2026, compared with an EAD loss of $0.48 per share in the fourth quarter. GAAP book value per share was $29.98 at March 31, compared with $30.01 at December 31, he said. Blackwell said available liquidity at March 31 totaled $87 million, consisting of $48 million of unrestricted cash and $38 million of projected financing available on unlevered assets. He also reiterated that the GAAP debt-to-equity leverage ratio rose to 3.4x, primarily due to the securitization closing. Blackwell said the company ended the quarter with net operating loss carryforwards of $32.1 million, or approximately $4.89 per share. In prepared remarks, Andrew Fentress discussed what he described as an “internalization combination” and said the rationale was to “be the best resource possible for our middle-market customers.” Fentress said ACRES offers “a complete dirt-to-perm financing solution program” and described the business as a roughly $5 billion platform that management expects to continue growing. Fentress said that after the merger, ACRES employees and board members are expected to be the largest shareholders in the company, with “over a 40% interest.” He also said “management will remain in place” and that owners and employees received 100% of their consideration in ACR shares “at book value.” During Q&A, management said the internalization is expected to be presented at the annual shareholder meeting scheduled for June 22, with an anticipated closing “shortly thereafter,” most likely in July. Management also told analysts the combined company will include an asset management component, with the public entity serving as the registered investment advisor for an existing asset management business in fund and separately managed account (SMA) structures. Management said those fees would “flow up to the public company” and be available to include in EAD going forward, adding that it expects to drive “non-balance sheet related revenues” that could support “higher and increasing EAD.” On dividends, management said its general view is to “pay them as we earn them,” and that after the companies combine it expects to have a clearer view of earnings power and then distribute earnings through EAD “as they’re earned.” When asked about issuing capital, management said it wants to grow “accretively,” and that issuing at or above book value would align with that approach. Management also said one advantage of the transaction is the potential to target a higher dividend “without increasing leverage,” because non-balance-sheet earnings could lift distributable earnings without additional balance-sheet leverage. Asked for an estimated pro forma book value for the transaction, management said, “Not at this time.” Separately, when asked about deploying liquidity and whether the company is close to fully invested, management said it considers the company “fully invested” today, adding that as it expects to drive a dividend, it hopes to eventually reach a point where it can “issue and grow from there.” ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and equity investments in commercial real estate property in the United States. It invests in commercial real estate-related assets, including floating-rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine financing, preferred equity investments, and commercial mortgage-backed securities. The article "ACRES Commercial Realty Q1 Earnings Call Highlights" was originally published by MarketBeat.

ACRES Commercial (ACR) came out with quarterly earnings of $0.02 per share, in line with the Zacks Consensus Estimate . This compares to a loss of $0.86 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this commercial real estate investment trust would post a loss of $0.01 per share when it actually produced a loss of $0.48, delivering a surprise of -4700%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. ACRES Commercial, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $9.25 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 19.6%. This compares to year-ago revenues of $5.6 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ACRES Commercial shares have lost about 3.2% since the beginning of the year versus the S&P 500's gain of 4.2%. While ACRES Commercial has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ACRES Commercial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.12 on $12.2 million in revenues for the coming quarter and $0.51 on $49 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Arbor Realty Trust (ABR), has yet to report results for the quarter ended March 2026. The results are expected to be released on May 8. This real estate investment trust is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of -42.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Arbor Realty Trust's revenues are expected to be $234 million, down 2.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ACRES Commercial Realty Corp. (ACR) : Free Stock Analysis Report Arbor Realty Trust (ABR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research