ACRES Commercial Realty Corp. ACR

Overview

ACRES Commercial Realty Corp., operating as a real estate investment trust (REIT), specializes in the origination, holding, and management of commercial real estate mortgage loans and equity investments across the United States. With a strategic focus on commercial real estate-related assets, the company demonstrates a diversified investment portfolio that includes a range of financing solutions tailored to the needs of the commercial real estate sector. Recognized by its previous name, Exantas Capital Corp., the corporation underwent a rebranding to ACRES Commercial Realty Corp. in February 2021, signaling a renewed commitment to its core business operations. Established in 2005 and headquartered in Uniondale, New York, ACRES Commercial Realty Corp. operates under a business model designed to benefit from the specific tax advantages offered to REITs, allowing it to distribute a significant portion of its income to shareholders while mitigating federal corporate income tax liabilities.

Products and Services

ACRES Commercial Realty Corp. offers a comprehensive suite of financial products and services designed to support the growth and development of the commercial real estate sector. These include:

• Floating-rate First Mortgage Loans: These are mortgage loans with interest rates that fluctuate over time based on an underlying benchmark. This product is designed to finance commercial properties, providing borrowers with the flexibility to capitalize on changing interest rates.
• First Priority Interests in First Mortgage Loans: This service involves the holding of senior positions in mortgage loans, ensuring priority claim over assets in case of default. It represents a secured investment strategy by focusing on the highest quality collateral within a loan structure.
• Subordinated Interests in First Mortgage Loans: ACRES Commercial Realty focuses on investing in junior or subordinated tranches of mortgage loans. While these come with higher risk due to their lower priority in the event of default, they also offer the potential for higher yields, appealing to more risk-tolerant investors.
• Mezzanine Financing: This type of financing provides capital to developers or property owners that is subordinate to primary mortgage lending but senior to equity financing. Mezzanine loans are typically secured by the stock of the borrowing entity, offering a blend of debt and equity financing features.
• Preferred Equity Investments: The company invests in preferred equity, which is a type of stock that provides a higher claim on assets and earnings than common stock, offering dividends before any are distributed to common shareholders.
• Commercial Mortgage-Backed Securities (CMBS): These are securities backed by mortgage loans on commercial properties. ACRES Commercial Realty invests in these securities, offering investors a way to gain exposure to the commercial real estate sector with the liquidity of tradable assets.