# Acres Commercial Realty (ACR.US)

Canonical: https://gigainvestors.com/s/ACR

Analysis as of: 2026-10-16T07:26:11.478Z. Financial observations: FY2005–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $10.47 per share; close as of 2026-10-15.

Estimated value: low $24.88 per share, central $34.39 per share, high $40.34 per share. Buy at or below the central value $34.39 per share. Valuation as of 2026-10-16T07:26:11.478Z; scenarios are not confidence intervals.

Expected annual return: 24.7% at the stated quote. About 24.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 2

- Operating margin variation: 0.87×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.23×

- FY2017: 0.22×

- FY2018: 0.88×

- FY2019: 0.64×

- FY2021: 0.96×

- FY2022: 1.41×

- FY2023: 0.23×

- FY2024: 0.14×

- FY2025: 0.62×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 1.3%

- ROIC, second-lowest year: -0.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.1%

- ROIC including acquisitions, ten-year median: 1.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -0.7%

- FY2017: 0.6%

- FY2018: 2.0%

- FY2019: 1.5%

- FY2020: -6.9%

- FY2021: 4.4%

- FY2022: 3.3%

- FY2023: 1.0%

- FY2024: 0.6%

- FY2025: 5.3%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.71×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $83M

- Net income, five-year total: $118M

- Return on incremental invested capital: 112.9%

- Working capital / revenue, annual change: -58.8 pp

- Working capital / revenue, change between three-year averages: -2.1 pp

- Working capital / revenue, final three-year average: 32.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.94×

- FY2023: -0.51×

- FY2024: 1.00×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 0.6% vs 1.0%

- Per-share earnings: 0.98 to 2.88 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -3.7%

- Ordinary dilution, 5-year annual growth: -7.2%

- Market cap gain: -$112M

- Cumulative retained earnings: -$203M

- Diluted shares, 10-year annual growth: -3.7%

- Diluted shares, 5-year annual growth: -7.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 14.4%

- Per-share value change: $1.89

- Per-share value, starting three-year median: $0.98

- Per-share value, ending three-year median: $2.88

- Buybacks concentrated in cheaper years (correlation): 0.42

- Average buyback yield: 13.5%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $8.9M

- Cumulative net income, 10 years: -$14M

- ROIC, first three-year median: 0.6%

- ROIC, last three-year median: 1.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$2.98

- FY2017: $3.24

- FY2018: $2.62

- FY2019: $3.41

- FY2020: -$18.37

- FY2021: $3.47

- FY2022: $1.21

- FY2023: $2.61

- FY2024: $3.69

- FY2025: $2.88

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: 0.8%

- Receivables to sales index (DSRI): 0.81×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 52.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.19×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.5%

- FY2017: -9.8%

- FY2018: -1.0%

- FY2019: -0.3%

- FY2020: -13.9%

- FY2021: -0.3%

- FY2022: -0.9%

- FY2023: -1.1%

- FY2024: 0.5%

- FY2025: 0.8%

## Holders

## Price story

Down 52% since Mar 2025 · sales +98.7%

Story as of 2026-10-16T09:58:13.813Z; price observation 2026-10-15.

Price needs cash profits to shrink 9.3% a year for ten years

- 2025-07-31: ACRES targets $300M–$500M portfolio growth through year-end as credit quality remains stable ([seekingalpha.com](https://seekingalpha.com/news/4475842-acres-targets-300m-500m-portfolio-growth-through-year-end-as-credit-quality-remains-stable?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2024–2025

sales +98.7%; source https://www.sec.gov/Archives/edgar/data/1332551/000119312526098916/acr-20251231.htm; observed 2026-03-10.

- FY2016: $63M 

- FY2017: $46M 

- FY2018: $37M 

- FY2019: $56M 

- FY2020: -$81M 

- FY2021: $106M 

- FY2022: $63M 

- FY2023: $91M 

- FY2024: $83M 

- FY2025: $166M 

### Gross margin · FY2025

gross margin 96%; source https://www.sec.gov/Archives/edgar/data/1332551/000119312526098916/acr-20251231.htm; observed 2026-03-10.

- FY2017: 71.2% 

- FY2018: 69.1% 

- FY2021: 94.2% 

- FY2022: 46.2% 

- FY2023: 57.3% 

- FY2024: 43.8% 

- FY2025: 96.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in property rentals; annual sales are USD 165.9 million.

- Source: https://www.sec.gov/Archives/edgar/data/1332551/000119312526098916/acr-20251231.htm (filed 2026-03-10); FY2025: revenue 165903000; grossProfit 159336000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 43.8% to 96% during 2023–25; it earns 1.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2023: grossProfit / revenue = 57.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2024: grossProfit / revenue = 43.8%.

- Source: https://www.sec.gov/Archives/edgar/data/1332551/000119312526098916/acr-20251231.htm (filed 2026-03-10); FY2025: grossProfit / revenue = 96%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); 10-year return on capital observations [[2016,-0.00684319971282862],[2017,0.006231449043216927],[2018,0.020074983128173584],[2019,0.015175719836333673],[2020,-0.06865029231539746],[2021,0.04430721221915038],[2022,0.03336147551314165],[2023,0.009929271539193447],[2024,0.006458613373856502],[2025,0.053168220892155546]]; median 0.01255249568776356. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 0.4% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2017: growth capex 0; upkeep 74247000; cash acquisitions 5000; owner earnings 52260000. Growth capex plus acquisitions / owner earnings = 0.00009567546880979717.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2018: growth capex 0; upkeep 5000; cash acquisitions 0; owner earnings 30330000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2019: growth capex 0; upkeep 5000; owner earnings 39360000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2021: growth capex 0; upkeep 61000; owner earnings 33956000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2022: growth capex 0; upkeep 741000; owner earnings 9967000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2024: growth capex 0; upkeep 8000; owner earnings 29316000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1332551/000119312526098916/acr-20251231.htm (filed 2026-03-10); FY2025: growth capex 87000; upkeep 78000; owner earnings 21316000. Growth capex / owner earnings = 0.004081441170951398.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); Dividend observations: [[2016,76567000],[2017,30309000],[2018,26325000],[2019,37402000],[2020,19117000],[2021,14350000],[2022,19422000],[2023,19422000],[2024,20041000],[2025,21227000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1332551/000119312526098916/acr-20251231.htm (filed 2026-03-10); FY2025: cash repurchases 22319000 USD.

### Are managers owners

Insiders own 37.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); ACR.US SharesStats.PercentInsiders = 37.893 percentage points; cache date 2026-10-05.

### What the price says

The price assumes cash profits shrink 9.3% yearly over ten years; actual growth was 7.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); Ten-year compound average after fade. Initial solved rate -0.14316145228462412. Price 10.47; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.4311196862707583 → FY2025 2.8755235291506938. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $37.17 per share

- 2016-11: $25.32 per share

- 2016-12: $24.99 per share

- 2017-01: $24.66 per share

- 2017-02: $25.20 per share

- 2017-03: $29.31 per share

- 2017-04: $28.05 per share

- 2017-05: $28.92 per share

- 2017-06: $30.51 per share

- 2017-07: $30.75 per share

- 2017-08: $31.05 per share

- 2017-09: $32.34 per share

- 2017-10: $30.78 per share

- 2017-11: $29.94 per share

- 2017-12: $28.11 per share

- 2018-01: $28.44 per share

- 2018-02: $26.07 per share

- 2018-03: $28.53 per share

- 2018-04: $29.28 per share

- 2018-05: $30.27 per share

- 2018-06: $30.54 per share

- 2018-07: $31.47 per share

- 2018-08: $35.55 per share

- 2018-09: $32.94 per share

- 2018-10: $34.02 per share

- 2018-11: $33.51 per share

- 2018-12: $30.06 per share

- 2019-01: $31.71 per share

- 2019-02: $32.55 per share

- 2019-03: $31.89 per share

- 2019-04: $32.85 per share

- 2019-05: $32.70 per share

- 2019-06: $33.93 per share

- 2019-07: $33.57 per share

- 2019-08: $33.63 per share

- 2019-09: $34.11 per share

- 2019-10: $35.28 per share

- 2019-11: $36.12 per share

- 2019-12: $35.43 per share

- 2020-01: $36.24 per share

- 2020-02: $34.38 per share

- 2020-03: $8.28 per share

- 2020-04: $8.88 per share

- 2020-05: $6.00 per share

- 2020-06: $7.95 per share

- 2020-07: $6.69 per share

- 2020-08: $6.99 per share

- 2020-09: $6.27 per share

- 2020-10: $5.64 per share

- 2020-11: $10.44 per share

- 2020-12: $11.97 per share

- 2021-01: $11.94 per share

- 2021-02: $13.02 per share

- 2021-03: $14.59 per share

- 2021-04: $15.18 per share

- 2021-05: $15.42 per share

- 2021-06: $16.06 per share

- 2021-07: $17.50 per share

- 2021-08: $16.82 per share

- 2021-09: $16.17 per share

- 2021-10: $15.70 per share

- 2021-11: $13.92 per share

- 2021-12: $12.47 per share

- 2022-01: $12.12 per share

- 2022-02: $11.26 per share

- 2022-03: $13.41 per share

- 2022-04: $11.48 per share

- 2022-05: $9.85 per share

- 2022-06: $8.19 per share

- 2022-07: $8.31 per share

- 2022-08: $9.71 per share

- 2022-09: $8.15 per share

- 2022-10: $10.68 per share

- 2022-11: $9.86 per share

- 2022-12: $8.26 per share

- 2023-01: $9.45 per share

- 2023-02: $9.70 per share

- 2023-03: $9.72 per share

- 2023-04: $8.84 per share

- 2023-05: $8.07 per share

- 2023-06: $8.84 per share

- 2023-07: $8.83 per share

- 2023-08: $8.48 per share

- 2023-09: $8.30 per share

- 2023-10: $7.25 per share

- 2023-11: $7.51 per share

- 2023-12: $9.62 per share

- 2024-01: $9.99 per share

- 2024-02: $11.05 per share

- 2024-03: $14.06 per share

- 2024-04: $13.30 per share

- 2024-05: $12.41 per share

- 2024-06: $12.76 per share

- 2024-07: $14.32 per share

- 2024-08: $15.45 per share

- 2024-09: $15.66 per share

- 2024-10: $15.30 per share

- 2024-11: $17.37 per share

- 2024-12: $16.15 per share

- 2025-01: $17.68 per share

- 2025-02: $20.97 per share

- 2025-03: $21.67 per share

- 2025-04: $19.33 per share

- 2025-05: $18.91 per share

- 2025-06: $17.94 per share

- 2025-07: $19.68 per share

- 2025-08: $21.00 per share

- 2025-09: $21.16 per share

- 2025-10: $21.00 per share

- 2025-11: $21.21 per share

- 2025-12: $21.34 per share

- 2026-01: $19.15 per share

- 2026-02: $18.51 per share

- 2026-03: $19.32 per share

- 2026-04: $21.09 per share

- 2026-05: $20.40 per share

- 2026-06: $17.79 per share

- 2026-07: $17.50 per share

- 2026-08: $13.93 per share

- 2026-09: $11.06 per share

- 2026-10: $10.47 per share

## Annual estimated value (USD per share)

- FY2016: low $8.36 per share, central $9.52 per share, high $11.05 per share

- FY2017: low $26.37 per share, central $30.01 per share, high $34.85 per share

- FY2018: low $21.46 per share, central $24.42 per share, high $28.36 per share

- FY2019: low $40.75 per share, central $46.37 per share, high $53.85 per share

- FY2025: low $46.72 per share, central $64.59 per share, high $75.76 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1332551/000119312526098916/acr-20251231.htm); period 2025-12-31, filed 2026-03-10.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations



# ACR — ACRES Commercial Realty Corp.

Held by 1 investor · USD 8,281,601 total · 2025 Q3 · reported price USD 21.16 (split-adjusted).
Page: https://gigainvestors.com/s/ACR

## Holders (2025 Q3)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Howard Marks (https://gigainvestors.com/oc) | USD 8,281,601 | 0.2% | new |

## Total held by quarter

- 2025 Q3: USD 8,281,601 · 1 holder · USD 21.16
- 2025 Q4: USD 0 · 0 holders