ACRES Commercial Prices $52.7M Series C Preferred at $23.75/Share
ACR is trading near its 52-week low of $14.11 (2.8% above the low).
Summary
ACRES Commercial Realty Corp. priced a 2.22 million share Series C Preferred Stock offering at $23.75 per share, raising about $50.2 million net. The 8.625% fixed-to-floating rate preferred stock will fund loan originations and general corporate purposes, following the recent internalization of its manager.
Key Events · Financing and Capital Events · ACR
-
Series C Preferred Priced at $23.75
The company priced 2,220,000 shares of 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock at $23.75 per share, a 5% discount to the $25.00 liquidation preference.
-
Net Proceeds of ~$50.2 Million
After placement agent fees of $0.546875 per share and estimated expenses, net proceeds are approximately $50,225,000, intended for loan originations and general corporate purposes.
-
Cumulative Dividend Obligation
The preferred stock carries a cumulative 8.625% initial dividend rate, payable quarterly, which will accrue regardless of earnings and must be paid before any common stock dividends.
-
Settlement on August 12, 2026
The offering is expected to settle on August 12, 2026, with shares fungible with existing Series C Preferred (NYSE: ACRPrC).
Analysis · ACR · Real Estate & Construction
ACRES Commercial Realty Corp. priced its Series C Preferred Stock offering at $23.75 per share, raising approximately $50.2 million in net proceeds. The 8.625% fixed-to-floating rate preferred stock adds a layer of capital that is senior to common equity but less dilutive than a common stock issuance. The offering comes just days after the company completed its all-stock acquisition of its external manager, which significantly increased its share count and contributed to a recent net loss. The preferred stock carries a cumulative dividend, meaning unpaid dividends accrue and must be paid before common dividends, creating a fixed charge on future earnings. The proceeds are earmarked for loan originations and general corporate purposes, which could support the company's transition to an internally managed structure. However, the stock is trading near its 52-week low, and the preferred dividend rate of 8.625% reflects the market's risk assessment of the company's credit profile.
At the time of this filing, ACR was trading at $14.50 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $101.3M. The 52-week trading range was $14.11 to $24.61. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.