ACRES Commercial Realty Corp. (ACR) Earnings
ACRES Commercial Realty Corp. is expected to report next earnings on November 4, 2026 (in NaN days), with a consensus EPS estimate of $0.15. ACR has beaten EPS estimates in 5 of its last 12 reported quarters (average surprise -1145.0% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 30, 2026 | $0.18 | $-0.74 | -518.8% | $21M | +3.2% |
| Apr 30, 2026 | $0.02 | $0.02 | +0.0% | $18M | -13.3% |
| Mar 5, 2026 | $-0.01 | $-0.48 | -4700.0% | $106M | +406.2% |
| Oct 29, 2025 | $0.14 | $1.01 | +638.8% | $21M | -2.6% |
| Jul 30, 2025 | $0.01 | $0.04 | +300.0% | $42M | +92.4% |
| Apr 30, 2025 | $0.53 | $-0.86 | -262.3% | $17M | -25.3% |
| Mar 5, 2025 | $0.22 | $0.48 | +116.2% | $29M | +36.2% |
| Oct 30, 2024 | $0.40 | $0.24 | -39.4% | $39M | +67.0% |
| Jul 31, 2024 | $0.35 | $0.51 | +43.7% | $51M | +136.7% |
| May 1, 2024 | $0.42 | $0.16 | -61.9% | $25M | +12.5% |
| Feb 28, 2024 | $0.58 | $0.55 | -5.2% | $22M | +9.3% |
| Nov 1, 2023 | $0.53 | $0.73 | +37.7% | $24M | +23.7% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · July 30, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
• Portfolio Management - The team continues to actively improve performance on underperforming assets, and maintains a selective approach to new opportunities and loan originations. - The overall portfolio continues to perform well, demonstrating consistent underwriting and proactive asset management. • Manager Internalization Transaction - Shareholders approved the share issuance for the external manager internalization transaction, with ~99% of votes cast in favor of the proposal. - Closing of the transaction is expected to occur in the near term, with post-closing Acres employees owning over 40% of ACR common stock, aligning employee interests with external shareholders. - The transaction adds a new fee-based revenue stream from evergreen fund vehicles, separate accounts, and new fund products, alongside the existing CRE loan business, with no change to the core underwriting and asset management strategy focused on high-quality assets, markets and sponsors. • Financial Performance - GAAP net loss allocable to common shares was $12.5 million ($1.87 per share), including $5.1 million in internalization transaction costs, $4 million in incremental compensation from accelerated vesting for the transaction, and a $1.7 million increase in credit loss reserves driven by weaker projected macroeconomic conditions. - Core Earnings (EAD) was a loss of 74 cents per share, compared to a 2 cent per share gain in Q1 2026, with the loss driven by transaction costs and accelerated deferred debt costs on one debt facility. Excluding one-time transaction costs, EAD would have been 14 cents per share for the quarter. - GAAP book value per share was $26.76 at June 30, down from $29.98 at March 31, driven by restricted stock vesting, transaction costs, and deferred debt costs. - Total available liquidity at quarter end was $83 million, split between $41 million in unrestricted cash and $42 million in available financing on unlevered assets. The leverage ratio (debt-to-equity) decreased to 3.2x from 3.4x Q1, due to net portfolio repayments. - The company holds $94.1 million in net operating loss carryforments (~$6.36 per share) to offset future taxable income.
Guidance
- Management maintains the full-year 2026 target of $500 million net growth for the REIT portfolio. - One-time internalization transaction costs will be recognized in Q3 2026, but these costs will be lower than the amount recognized in Q2 2026. - The 2.7 billion loan portfolio target is driven by conversion of existing portfolio equity into new loan originations, not primarily new warehouse financing. - AUM-based fee revenue post-internalization will range between the lower and higher provided case scenarios based on future AUM growth in separate accounts and open/closed-end fund vehicles.
Segment performance
Acres Commercial Realty Corp operates two primary revenue segments following the pending manager internalization: commercial real estate (CRE) loan portfolio and future fee-based revenue from new fund/separate account products. For Q2 2026: 1. CRE Loan Portfolio: The portfolio had a par value of $2.1 billion at June 30, 2026. Total allowance for credit losses was $21.1 million (0.99% of par value, all general credit reserves). Net interest income for the quarter was $10.5 million, a $1.3 million increase over Q1 2026 driven by the full quarter impact of a new CRE securitization. Loan payoffs/paydowns totaled $92.7 million, while funded commitments were $17.8 million, resulting in a $74.9 million net decrease in the loan portfolio. 14% of the portfolio (by economic interest) was rated 4 or 5 (higher risk), unchanged from Q1 2026. The weighted average risk rating was 2.6, up slightly from 2.5 in Q1. 2. Net Real Estate Operations: Reported a $1.1 million net increase in operating performance for the quarter. No separate revenue contribution percentages are provided for the two operating segments in this quarter, as the internalization transaction that will formalize the fee segment has not yet closed.
Risks & headwinds
- Forward-looking statements are subject to multiple trends, risks and uncertainties that could cause actual results to differ materially from expectations, with key risks detailed in the company's SEC filings, including the risk factor section of Form 10-K. - The company increased credit loss reserves by $1.7 million in Q2 2026 due to a decline in projected macroeconomic conditions, indicating ongoing macroeconomic risk to portfolio credit quality. - Two remaining REO properties (including a hotel held for sale since 2022) have not yet been sold, presenting ongoing holding and disposal risk for these assets.
Analyst Q&A
Q: When will the company hit its $500 million 2026 net growth target, and what is the current status of the origination pipeline? /
A: Management notes the pipeline is stronger than ever, with increased market capitulation driving more asset sales and acquisitions. This has given Acres access to more high-quality opportunities with reputable sponsors, and the company is selectively analyzing the best options to add to the portfolio.
Q: Will one-time internalization transaction costs in Q3 be similar to the level seen in Q2 for modeling purposes? /
A: Management confirms additional one-time transaction costs will be recognized in Q3, but confirms the total amount of these costs will be lower than what was reported in Q2 2026, as the bulk of the expenses were already recorded in the second quarter.
Q: What drives the range of AUM fee outcomes between the low and high case scenarios post-internalization? /
A: The range of total AUM fees (from $48 million to $73 million) depends entirely on future AUM growth in Acres' new fee products, which include separate accounts, open-end funds, and closed-end fund vehicles that are already in the company's pipeline.
Q: What is the status of the remaining two REO properties, particularly the hotel held for sale since 2022? /
A: Management confirms the hotel has been actively listed for sale since 2022, but does not provide specific timing for an expected sale closing.