ACRES Commercial Realty Issues $879.5M Floating-Rate Notes for Financing
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Enhanced Financing Capacity: ACRES Commercial Realty issues $879.5 million of non-recourse floating-rate notes through its newly formed subsidiary, expected to elevate the company's financing capacity to approximately $1 billion in first mortgage loans, thereby enhancing its competitive position in the market.
- Optimized Rate Structure: The notes carry a weighted-average cost of SOFR +168 basis points, providing relatively flexible financing conditions that enable the company to effectively manage interest rate risk and optimize its capital structure.
- Flexible Reinvestment Mechanism: The transaction includes ramp-up and reinvestment features, allowing the company to flexibly address future loan pipeline financing needs, thus supporting its long-term growth strategy.
- Transaction Timeline: The transaction is expected to close by February 12, 2026, marking an active positioning in the capital markets and further solidifying the company's standing 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.
