ACRES Commercial Realty Issues $879.5 Million Floating-Rate Notes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
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Source: Newsfilter
- Enhanced Financing Capacity: ACRES Commercial Realty's issuance of $879.5 million in non-recourse floating-rate notes through its newly formed subsidiary is expected to provide the company with the capacity to finance approximately $1 billion in commercial real estate loans, significantly boosting its competitive position in the market.
- Diverse Note Structure: The offering includes $589.7 million of Class A Notes with a rate of SOFR+145 basis points, along with various other classes, showcasing a flexible financing structure that caters to different investor needs and enhances market appeal.
- Flexible Reinvestment Mechanism: The transaction features a 180-day ramp-up acquisition period and a 30-month reinvestment period, allowing the company to strategically acquire eligible mortgage assets in the future, thereby optimizing its asset portfolio and enhancing revenue potential.
- Positive Market Response: The notes are offered privately and are not registered under the Securities Act of 1933, indicating strong demand in the private market, which is expected to further drive the company's expansion and growth in the commercial real estate sector.
Analyst Views on ACR
Wall Street analysts forecast ACR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ACR is 24.50 USD with a low forecast of 24.50 USD and a high forecast of 24.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 20.320
Low
24.50
Averages
24.50
High
24.50
Current: 20.320
Low
24.50
Averages
24.50
High
24.50
About ACR
ACRES Commercial Realty Corp. is a real estate investment trust. The Company is primarily focused on originating, holding and managing commercial real estate (CRE) mortgage loans and equity investments in commercial real estate property 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 dedicated to nationwide middle market CRE lending with a focus on multifamily, student housing, hospitality, industrial and office property in the United States markets. Its objective is to provide its stockholders with total returns over time, including the payment of quarterly distributions when approved by its board of directors and capital appreciation, while seeking to manage the risks associated with its investment strategies. It invests in CRE whole loans, CRE mezzanine loans and CRE equity investments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
