📊 ACR-PD Key Takeaways
Is ACRES Commercial Realty Corp. (ACR-PD) a Good Investment?
ACRES demonstrates severe financial distress with dangerously low interest coverage (0.5x), indicating inability to service debt obligations from operating income. While net margin appears strong at 35%, this is driven by a massive one-time gain (evidenced by 11,605.9% YoY net income growth), masking underlying operational weakness with revenue declining 32.9% YoY and weak free cash flow generation of only $4.1M against $1.6B in long-term debt.
ACRES Commercial Realty shows headline profitability, but the quality of earnings looks weak given the sharp 32.9% revenue decline, very low operating cash flow relative to net income, and diluted EPS collapsing 97.4% despite reported net income growth. The balance sheet is heavily levered, and interest coverage of 0.5x suggests earnings are not comfortably supporting debt costs, which materially weakens the fundamental outlook.
Why Buy ACRES Commercial Realty Corp. Stock? ACR-PD Key Strengths
- Operating margin of 34.9% shows profitable core operations when excluding one-time items
- Maintains $83.8M cash position providing near-term liquidity buffer
- Total assets of $2.2B represent substantial real estate holdings backing equity value
- Positive net income and operating income in the latest period
- Asset base remains substantial at $2.16B with $420.80M of equity
- Free cash flow is positive and capital spending requirements appear minimal
ACR-PD Stock Risks: ACRES Commercial Realty Corp. Investment Risks
- Interest coverage of 0.5x is critically dangerous - operating income cannot cover interest expense, requiring asset sales or equity dilution to survive
- Revenue collapsed 32.9% YoY suggesting severe portfolio underperformance or market deterioration
- Debt/Equity ratio of 3.68x combined with low operating cash flow ($4.1M) creates high refinancing risk; company is not generating sufficient cash from operations to sustain debt load
- Diluted EPS crashed 97.4% YoY indicating massive shareholder value destruction despite reported net income growth
- Operating cash flow of $4.1M is negligible relative to $1.6B long-term debt - unsustainable capital structure
- Revenue contraction of 32.9% points to weakening core earnings power
- Debt/Equity of 3.68x and interest coverage of 0.5x indicate elevated financial risk
- Net income growth appears low quality because EPS fell sharply and operating cash flow was only $4.10M
Key Metrics to Watch
- Interest coverage ratio - must improve above 1.5x to indicate viability
- Operating cash flow trends - critical to determine if $4.1M is sustainable or further deteriorating
- Revenue stabilization - must reverse 32.9% decline to show portfolio stabilization
- Debt refinancing success - monitor upcoming debt maturities and refinancing terms
- One-time gain driver - understand if net income gain is repeatable or non-recurring
- Interest coverage and refinancing/debt-servicing capacity
- Revenue trend versus operating cash flow conversion
ACRES Commercial Realty Corp. (ACR-PD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
ACR-PD Profit Margin, ROE & Profitability Analysis
ACR-PD vs Real Estate Sector: How ACRES Commercial Realty Corp. Compares
How ACRES Commercial Realty Corp. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is ACRES Commercial Realty Corp. Stock Overvalued? ACR-PD Valuation Analysis 2026
Based on fundamental analysis, ACRES Commercial Realty Corp. has mixed fundamental signals relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
ACRES Commercial Realty Corp. Balance Sheet: ACR-PD Debt, Cash & Liquidity
ACR-PD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: ACRES Commercial Realty Corp.'s revenue has grown significantly by 49% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.35 reflects profitable operations.
ACR-PD Revenue Growth, EPS Growth & YoY Performance
ACR-PD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $21.0M | -$730.0K | $0.36 |
| Q2 2025 | $20.9M | -$730.0K | $-0.10 |
| Q1 2025 | $17.0M | -$730.0K | $0.07 |
| Q3 2024 | $22.4M | $2.3M | $0.15 |
| Q2 2024 | $20.9M | $2.3M | $0.10 |
| Q1 2024 | $18.8M | $2.3M | $0.07 |
| Q3 2023 | $20.9M | $2.1M | $0.08 |
| Q2 2023 | $20.1M | $2.1M | $0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ACRES Commercial Realty Corp. Dividends, Buybacks & Capital Allocation
ACR-PD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for ACRES Commercial Realty Corp. (CIK: 0001332551)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ACR-PD
What is the AI rating for ACR-PD?
ACRES Commercial Realty Corp. (ACR-PD) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ACR-PD's key strengths?
Claude: Operating margin of 34.9% shows profitable core operations when excluding one-time items. Maintains $83.8M cash position providing near-term liquidity buffer. ChatGPT: Positive net income and operating income in the latest period. Asset base remains substantial at $2.16B with $420.80M of equity.
What are the risks of investing in ACR-PD?
Claude: Interest coverage of 0.5x is critically dangerous - operating income cannot cover interest expense, requiring asset sales or equity dilution to survive. Revenue collapsed 32.9% YoY suggesting severe portfolio underperformance or market deterioration. ChatGPT: Revenue contraction of 32.9% points to weakening core earnings power. Debt/Equity of 3.68x and interest coverage of 0.5x indicate elevated financial risk.
What is ACR-PD's revenue and growth?
ACRES Commercial Realty Corp. reported revenue of $79.9M.
Does ACR-PD pay dividends?
ACRES Commercial Realty Corp. pays dividends, with $8.8M distributed to shareholders in the trailing twelve months.
Where can I find ACR-PD SEC filings?
Official SEC filings for ACRES Commercial Realty Corp. (CIK: 0001332551) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ACR-PD's EPS?
ACRES Commercial Realty Corp. has a diluted EPS of $0.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ACR-PD a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, ACRES Commercial Realty Corp. has a SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ACR-PD stock overvalued or undervalued?
Valuation metrics for ACR-PD: ROE of 6.6% (sector avg: 8%), net margin of 35.0% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy ACR-PD stock in 2026?
Our dual AI analysis gives ACRES Commercial Realty Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ACR-PD's free cash flow?
ACRES Commercial Realty Corp.'s operating cash flow is $4.1M, with capital expenditures of $0.0. FCF margin is 5.1%.
How does ACR-PD compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 35.0% (avg: 20%), ROE 6.6% (avg: 8%), current ratio N/A (avg: 1.5).
Is ACRES Commercial Realty Corp. carrying too much debt?
ACR-PD has a debt-to-equity ratio of 3.68x, which is above the Real Estate sector average of 1.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.