ACRES Commercial Realty Q3 revenue beats estimates; completed merger with manager

Overview

• U.S. commercial mortgage REIT's Q3 revenue beat analyst expectations

• Company reported GAAP net loss of $56.3 mln for Q3

• Company completed merger with manager, now internally managed

Outlook

• Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers

• INTERNAL MANAGEMENT - Co completed merger with manager and is now internally managed, which management expects will drive future results

• BUSINESS SEGMENTS - Management expects Principal Investing, Investment Management and Insurance businesses to drive future results

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for ACRES Commercial Realty Corp. is $17.00, about 19.2% above its November 4 closing price of $14.26

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads

• Nov 4 - Granite Point Mortgage Trust Q3 loss widens on credit provisions, REO impairment

• Nov 4 - Velocity Financial Q3 core EPS beats on strong loan demand

• Nov 4 - TPG Mortgage Investment Trust Q3 book value drops on Cherry Hill merger

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)