0001193125-26-098916
SEC filingACRES Commercial Realty Corp. (ACR) reported FY 2025 total revenues of $79.9 million, driven primarily by interest income of $119.1 million and real estate income of $46.6 million. Net income was $28.0 million, with net income allocable to common shares at $239 thousand. The company generated $4.1 million in net cash from operating activities, while investing activities used $224.2 million primarily for CRE loan fundings. Financing activities provided $248.5 million through new borrowings and proceeds from non-controlling interests. Total assets stood at $2.16 billion, with CRE loans (net) comprising $1.81 billion. Total liabilities were $1.61 billion, resulting in total equity of $550.6 million. The company ended the period with $104.8 million in cash and restricted cash.
ACRES Commercial Realty Corp. reported FY 2025 total revenues of $79.9 million, consisting of $119.1 million in total interest income and $46.6 million in real estate income, offset by $85.9 million in interest expense. Net income was $28.0 million, with $21.1 million allocated to preferred shares and $6.7 million to non-controlling interests, leaving $239 thousand allocable to common shares. Net income per common share was $0 for both basic and diluted calculations. The weighted average number of common shares outstanding was 7.1 million basic and 7.4 million diluted. Total operating expenses were $63.5 million, including $51.3 million in real estate expenses and $11.3 million in general and administrative costs.
The company's revenue streams were dominated by interest income from CRE loans ($118.1 million) and other interest income ($1.0 million), totaling $119.1 million in interest income. Real estate income contributed $46.6 million, while other revenue added $133 thousand. Total revenues of $79.9 million reflect the net interest income of $33.2 million after deducting $85.9 million in interest expense from total interest income. The company also recorded $11.5 million in total other income, primarily from an $11.7 million gain on sale of investment in real estate, partially offset by $1.7 million in equity losses of unconsolidated subsidiaries.
Net interest income margin (net interest income divided by total interest income) was 27.9% ($33.2 million / $119.1 million). Operating expenses of $63.5 million included significant real estate expenses of $51.3 million and management fees of $6.4 million to related parties. The company recorded a $7.7 million reversal of provision for credit losses, which reduced total operating expenses. Income before taxes was $27.9 million, with a minimal income tax expense of $83 thousand, resulting in a net income margin of 35.0% ($28.0 million / $79.9 million).
Net cash provided by operating activities was $4.1 million, derived from $28.0 million net income adjusted for non-cash items including a $7.7 million credit loss reversal and $11.7 million gain on sale of investment. Investing activities used $224.2 million primarily for $753.2 million in CRE loan fundings, partially offset by $341.4 million in principal payments and $121.6 million from real estate sales. Financing activities provided $248.5 million through $1.47 billion in new borrowings, $125.0 million from non-controlling interests, offset by $1.22 billion in debt repayments and $22.3 million in stock repurchases. Total assets of $2.16 billion included $1.81 billion in net CRE loans and $90.8 million in properties held for sale. Total liabilities of $1.61 billion consisted mainly of $1.54 billion in borrowings.
The filing does not contain explicit forward-looking guidance, management projections, or specific strategic priorities for future periods. No quantitative or qualitative outlook statements were provided in the document content regarding future performance expectations, growth targets, or specific risk factor updates beyond the standard risk disclosures typically included in 10-K filings. The financial data presented reflects historical performance for FY 2025 ending December 31, 2025.