Acres Commercial Realty (ACRE): The new name brings new opportunities for ACRE

Formerly Exantas Capital Corp. is now known as Acres Commercial Realty Corp.

Shares of Acres Commercial Realty Corp. (ACRE) has been trading on a high following the change of the company name. The change of name from Exantas Capital Corp. to Acres Commercial Realty Corp. is a strategic move.

The major reason behind the push in ACRE shares is the promising and strong fourth-quarter and full-year 2020 results. The company ended the year with strong Earnings, with Q4 its highest quarterly Distributable Earnings in the year. Moreover, the balance sheet was also strong with consistent interest collections and no credit-related losses. 

What’s Next?

Following the decision of the board, Acres Commercial Realty (ACRE) was the new name adopted after the approval of a 3-for-1 reverse split of the Company’s common stock.

With this change, the company’s common stock and 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock will continue to be listed on the NYSE. The company’s common stock will be traded under the ticker symbol “ACR” and the preferred stock will be traded under the ticker symbol of “ACR PrC”.

This decision was taken with the strategic transition of the Exantas management contract to the ACRES network. The company is looking forward to Acres’ growth as a full end-to-end solution for middle-market commercial real estate.

Acres focuses on holding, originating, and managing commercial real estate mortgage loans and other commercial real estate-related debt investments.

Furthermore, the company recently reported quarterly and annual financial updates. The GAAP net income was $14.4 million for Q4 and was $21.8 million for the full year. While the Distributable Earnings during Q4 and full-year were $13.7 million and $45.1 million, respectively.

The company stands in a strong position as we head forward. So, the outlook for this year is also promising. The company has declared a quarterly dividend of $0.33 per share for Q2 2021 due to a high outlook for 2021 Distributable Earnings. Along with the regular dividend, the shareholders will enjoy a supplemental quarterly dividend of $0.02 per share.

The company expects this year to be good for the overall performance. Acresbelieve that its Distributable Earnings will meet or exceed the dividends, including the supplemental dividends, for 2021.

Conclusion

Acres Commercial Realty (ACRE) has new beginnings with the old balance sheet growing and getting stronger. The company moves forward with much optimism and expects things to get bigger in the longer run.

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