Breaking Down ACRES Commercial Realty Corp. (ACR) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments? Ever wonder how ACRES Commercial Realty Corp. stands in terms of financial stability? As of April 17, 2025, the company has a market capitalization of $118.0 million. The latest data reveals a price-to-earnings ratio of 14.9, with trailing 12-month revenues hitting $78.7 million and a profit margin of 37.2%. But that's not all – with a recent 6.1% year-over-year quarterly sales growth and analysts projecting adjusted earnings of $2.015 per share for the current fiscal year, there's much more to explore. Dive in to uncover key insights about ACR's financial health, liquidity, and valuation, and arm yourself with the knowledge to make informed investment decisions.

ACRES Commercial Realty Corp. (ACR) Revenue Analysis

Understanding ACRES Commercial Realty Corp. (ACR)'s financial health requires a detailed look into its revenue streams. For investors, knowing where a company's money comes from and how those sources are changing is crucial for assessing its stability and growth potential.

ACRES Commercial Realty Corp. primarily operates as a commercial real estate finance company. Its revenue is mainly derived from:

• Interest Income: This is the largest component, generated from the loans they originate and manage. The specifics would depend on the loan portfolio's size, interest rates, and performance.
• Fee Income: ACRES also earns fees from loan origination, servicing, and other related activities.

To accurately assess ACRES Commercial Realty Corp.'s revenue streams and financial health, it is essential to refer to their latest Form 10-K filing for the fiscal year 2024.

Here's what an analysis of revenue streams typically involves:

Year-over-year revenue growth rate: Examining historical trends in revenue growth (or decline) provides insights into the company's ability to expand its business. The percentage increase or decrease from one year to the next is a key indicator.

Contribution of different business segments to overall revenue: Understanding how each segment contributes helps identify which areas are driving growth and which may be underperforming.

Analysis of any significant changes in revenue streams: Significant shifts in revenue sources can signal strategic changes, market impacts, or new opportunities. These changes need to be carefully evaluated to understand their implications.

Below is a hypothetical example of how revenue streams might be broken down (note: this is not actual data for ACRES Commercial Realty Corp. and is for illustrative purposes only):

In this example, total revenue grew by 10.5%, with fee income showing a strong growth rate. Declines in other income might warrant further investigation.

For more in-depth analysis, check out: Breaking Down ACRES Commercial Realty Corp. (ACR) Financial Health: Key Insights for Investors

ACRES Commercial Realty Corp. (ACR) Profitability Metrics

Analyzing ACRES Commercial Realty Corp. (ACR)'s profitability involves examining several key metrics, including gross profit, operating profit, and net profit margins. These metrics provide insights into how efficiently ACR generates profit from its revenue and manages its expenses.

To accurately assess ACR's financial health, it's essential to delve into its recent financial performance. While precise figures for fiscal year 2024 are not yet fully available, we can analyze trends based on the latest available data from fiscal year 2023 and earlier.

Here's a breakdown of what investors typically look for and how to interpret the data, based on general financial principles and the context of a real estate investment trust (REIT):

• Gross Profit Margin: This indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). For a REIT like ACR, COGS might include direct property expenses. A higher gross profit margin suggests greater efficiency in managing property-related costs.
• Operating Profit Margin: This reflects the percentage of revenue remaining after deducting operating expenses, such as administrative costs and property management expenses. It reveals how well ACR controls its operational costs.
• Net Profit Margin: This is the percentage of revenue remaining after all expenses, including interest and taxes, have been deducted. It represents ACR's overall profitability.

When evaluating these margins, consider the following:

• Trends Over Time: Examine how these margins have changed over the past few years. Consistent or improving margins indicate strong financial health, while declining margins may signal potential issues.
• Comparison with Industry Averages: Compare ACR's profitability ratios with those of its peers in the commercial real estate industry. This helps determine whether ACR is performing above or below average.
• Operational Efficiency: Analyze ACR's cost management strategies and their impact on gross margins. Look for any significant changes in expenses that could affect profitability.

Understanding these profitability metrics is crucial for investors seeking to make informed decisions about ACRES Commercial Realty Corp. (ACR). For more detailed insights, you can explore further information on Breaking Down ACRES Commercial Realty Corp. (ACR) Financial Health: Key Insights for Investors.

ACRES Commercial Realty Corp. (ACR) Debt vs. Equity Structure

Understanding how ACRES Commercial Realty Corp. (ACR) finances its operations and growth is crucial for investors. This involves examining its debt levels, debt-to-equity ratio, and recent financing activities. A balance between debt and equity is vital for maintaining financial stability and supporting strategic initiatives.

As of the fiscal year 2024, ACRES Commercial Realty Corp. (ACR) manages its debt through a combination of short-term and long-term obligations. While specific figures for 2024 are not available, analyzing past trends can provide insights. For instance, in recent years, the company has strategically utilized both secured and unsecured debt to fund its commercial real estate lending activities. Reviewing the company's latest 10-K filing will provide the most up-to-date details on their debt structure.

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. While the exact debt-to-equity ratio for 2024 isn't accessible, it's important to compare this ratio to industry standards to gauge ACRES Commercial Realty Corp. (ACR)'s relative risk. Generally, a lower debt-to-equity ratio suggests a more conservative financial structure.

Recent activities such as debt issuances, credit ratings, and refinancing play a significant role in shaping ACRES Commercial Realty Corp. (ACR)'s financial profile. Investors should monitor these events to understand how the company is managing its debt obligations and capital structure. Keep an eye on press releases and investor relations updates for the latest information.

Balancing debt financing and equity funding is essential for sustainable growth. ACRES Commercial Realty Corp. (ACR) must carefully weigh the benefits and risks of each approach. Debt can provide leverage and potentially increase returns, but it also comes with interest expenses and the risk of default. Equity, on the other hand, dilutes ownership but doesn't require repayment. The company's strategic decisions in this area can significantly impact its long-term performance.

For more in-depth analysis, check out: Breaking Down ACRES Commercial Realty Corp. (ACR) Financial Health: Key Insights for Investors

ACRES Commercial Realty Corp. (ACR) Liquidity and Solvency

Liquidity and solvency are vital indicators of a company's financial health, revealing its ability to meet short-term obligations and long-term liabilities. For ACRES Commercial Realty Corp. (ACR), evaluating these metrics provides insights into its operational stability and risk profile.

Assessing ACRES Commercial Realty Corp.'s Liquidity:

Analyzing ACRES Commercial Realty Corp.'s liquidity involves examining key ratios and cash flow trends to gauge its ability to cover its current liabilities. Here's a breakdown:

• Current and Quick Ratios: These ratios measure a company's ability to pay off short-term liabilities with its current assets. The current ratio includes all current assets, while the quick ratio excludes inventory, focusing on the most liquid assets.
• Analysis of Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) helps to identify whether the company's short-term financial health is improving or deteriorating.
• Cash Flow Statements Overview: A review of the cash flow statement, specifically focusing on cash flow from operating, investing, and financing activities, can reveal how well the company generates cash and manages its cash needs.
• Potential Liquidity Concerns or Strengths: Identifying any red flags or positive signs in the liquidity position is crucial for investors.

For a clearer picture, let's consider a hypothetical (but realistic) scenario based on the 2024 fiscal year data. Note that the data provided below is illustrative and should not be considered actual financial data.

Based on this illustrative data:

• The current and quick ratios above 1x suggest a healthy liquidity position.
• Positive working capital indicates that the company can cover its short-term liabilities with its short-term assets.
• Positive cash flow from operations is a good sign, showing the company's ability to generate cash from its core business.
• Negative cash flow from investing and financing activities suggests that the company is investing in its future and returning capital to shareholders/creditors.

Understanding ACR's mission, vision, and core values can provide additional context when evaluating its financial strategy and long-term sustainability: Mission Statement, Vision, & Core Values of ACRES Commercial Realty Corp. (ACR).

ACRES Commercial Realty Corp. (ACR) Valuation Analysis

Assessing whether ACRES Commercial Realty Corp. (ACR) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. These components, when viewed together, provide a comprehensive perspective on the company's current market valuation.

Here's a breakdown of essential valuation metrics:

• Price-to-Earnings (P/E) Ratio: This ratio compares a company's stock price to its earnings per share (EPS). As of the latest available data, ACRES Commercial Realty Corp. (ACR)'s P/E ratio stands at 3.86, which is relatively low. This could suggest that the stock is undervalued compared to its earnings. However, it’s crucial to compare this to the industry average and historical P/E ratios to get a clearer picture.
• Price-to-Book (P/B) Ratio: The P/B ratio measures a company's market capitalization against its book value of equity. ACRES Commercial Realty Corp. (ACR)'s P/B ratio is currently at 0.32. A value below 1 may indicate the stock is undervalued, as it implies the market is valuing the company at less than its net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares a company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). As of current reports, ACRES Commercial Realty Corp. (ACR)'s EV/EBITDA ratio is 7.94. This is below 10 which is the rule of thumb for undervalued companies.

Analyzing stock price trends provides context to these ratios:

• 12-Month Stock Price Trend: Over the past 12 months, ACRES Commercial Realty Corp. (ACR) has experienced considerable volatility. As of April 18, 2025, the stock was trading at $7.91. The stock has fluctuated from a high of $11.34 on August 01, 2024, to a low of $5.32 on April 02, 2025. This indicates a downward trend, which could be influenced by various market factors, including broader economic conditions and company-specific performance.

Dividends also play a crucial role in valuation:

• Dividend Yield and Payout Ratio: ACRES Commercial Realty Corp. (ACR) offers a substantial dividend yield. With an annual dividend of $0.80 and a stock price of $7.91, the dividend yield is approximately 10.11%. However, the high dividend yield comes with a high payout ratio of 77.67%, which may raise concerns about the sustainability of the dividend if earnings decline.

Here’s a summary table of ACRES Commercial Realty Corp. (ACR)’s key valuation metrics:

Finally, it's important to consider analyst ratings:

• Analyst Consensus: The analyst consensus on ACRES Commercial Realty Corp. (ACR) stock is varied. As of April 2025, the consensus is to hold.

For more insights into ACRES Commercial Realty Corp. (ACR)'s financial health, you can read: Breaking Down ACRES Commercial Realty Corp. (ACR) Financial Health: Key Insights for Investors

ACRES Commercial Realty Corp. (ACR) Risk Factors

ACRES Commercial Realty Corp. (ACR) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and volatile market conditions. Understanding these challenges is crucial for investors assessing the company's stability and future prospects. To delve deeper into the foundational principles guiding the company, explore the Mission Statement, Vision, & Core Values of ACRES Commercial Realty Corp. (ACR).

Several key risks highlighted in ACRES Commercial Realty Corp.'s (ACR) recent filings and reports warrant careful consideration:

• Market Conditions and Interest Rate Fluctuations: As a commercial real estate lender, ACRES Commercial Realty Corp. (ACR) is highly susceptible to changes in interest rates and broader economic conditions. Rising interest rates can decrease the demand for commercial real estate loans, increase borrowing costs, and potentially lead to higher default rates among borrowers. Economic downturns can further exacerbate these issues by reducing property values and rental income.
• Credit Risk: The risk that borrowers may default on their loans is a persistent concern. The company's ability to accurately assess and manage credit risk is vital to maintaining a healthy portfolio. Factors such as borrower financial stability, property performance, and geographic location all play a role in determining credit risk.
• Regulatory and Legal Risks: Changes in regulations governing commercial real estate lending can impact ACRES Commercial Realty Corp.'s (ACR) operations and profitability. Compliance with existing and new regulations requires ongoing monitoring and adaptation.
• Liquidity Risk: Maintaining sufficient liquidity to meet its financial obligations is essential for ACRES Commercial Realty Corp. (ACR). Factors such as the availability of funding sources, the timing of loan repayments, and the overall health of the capital markets can affect the company's liquidity position.
• Competition: The commercial real estate lending market is highly competitive. ACRES Commercial Realty Corp. (ACR) competes with a variety of lenders, including banks, insurance companies, and other real estate investment trusts (REITs). Increased competition can put pressure on lending margins and reduce the company's market share.

While specific mitigation strategies are not always detailed in full, ACRES Commercial Realty Corp. (ACR) likely employs several common risk management techniques:

• Diversification: Spreading investments across different property types, geographic locations, and borrowers can reduce the impact of any single loan default.
• Due Diligence: Conducting thorough due diligence on potential borrowers and properties helps to assess and manage credit risk.
• Hedging: Using financial instruments to hedge against interest rate fluctuations can help to protect the company's earnings.
• Monitoring and Reporting: Regularly monitoring loan performance and providing timely reports to management allows for early detection of potential problems.
• Compliance Programs: Implementing robust compliance programs ensures adherence to all applicable laws and regulations.

ACRES Commercial Realty Corp. (ACR) Growth Opportunities

ACRES Commercial Realty Corp. (ACR) is strategically positioned to leverage several key growth drivers that could significantly influence its future performance. These drivers include innovative financial products, strategic market expansions, and potential acquisitions that align with its core business objectives.

Analysis of ACRES Commercial Realty Corp.'s (ACR) key growth drivers:

• Product Innovations: ACRES Commercial Realty Corp. (ACR) can enhance its financial offerings to cater to emerging market demands. By introducing specialized loan products or services, ACRES Commercial Realty Corp. (ACR) can attract a broader client base and increase revenue streams.
• Market Expansions: Expanding into underserved markets or regions with high growth potential can provide ACRES Commercial Realty Corp. (ACR) with new avenues for deployment and revenue generation. Strategic geographic diversification can also mitigate risks associated with regional economic downturns.
• Acquisitions: Pursuing strategic acquisitions of smaller firms or complementary businesses can quickly expand ACRES Commercial Realty Corp.'s (ACR) market presence and service offerings. Synergistic acquisitions can lead to cost savings and enhanced operational efficiencies.

Future revenue growth projections and earnings estimates for ACRES Commercial Realty Corp. (ACR) will depend on various factors, including market conditions, interest rate movements, and the successful execution of its strategic initiatives. While specific figures require up-to-date financial analysis, understanding these influencing factors is crucial for investors.

Strategic initiatives and partnerships that may drive future growth for ACRES Commercial Realty Corp. (ACR):

• Technology Adoption: Investing in advanced technology platforms can streamline operations, improve risk management, and enhance customer service. Digital solutions can also facilitate better data analytics, enabling more informed decision-making.
• Strategic Partnerships: Collaborating with other financial institutions, real estate developers, or industry stakeholders can provide ACRES Commercial Realty Corp. (ACR) with access to new markets, resources, and expertise.
• Sustainability Initiatives: Integrating environmental, social, and governance (ESG) factors into its business practices can attract socially responsible investors and enhance ACRES Commercial Realty Corp.'s (ACR) reputation.

ACRES Commercial Realty Corp. (ACR) possesses several competitive advantages that position it favorably for future growth. These include:

• Industry Expertise: ACRES Commercial Realty Corp.'s (ACR) deep understanding of the commercial real estate market provides it with a competitive edge in identifying and capitalizing on investment opportunities.
• Established Relationships: Strong relationships with borrowers, brokers, and other industry participants enhance ACRES Commercial Realty Corp.'s (ACR) ability to source and execute deals.
• Flexible Capital Base: ACRES Commercial Realty Corp.'s (ACR) access to diverse funding sources allows it to adapt to changing market conditions and pursue a variety of investment strategies.

These elements collectively contribute to ACRES Commercial Realty Corp.'s (ACR) potential for sustained growth and enhanced shareholder value. For more insights into the company's values and strategic direction, refer to Mission Statement, Vision, & Core Values of ACRES Commercial Realty Corp. (ACR).