ACRES Commercial Realty Corp. reported its financial results for the third quarter of 2025, revealing a net income of $18.0 million, or $1.38 per share, compared to $8.1 million, or $0.37 per share, in the same period last year. For the nine months ended September 30, 2025, the company recorded a net income of $21.6 million, or $3.19 per share, compared to $19.4 million, or $5.03 per share, for the same period in 2024. Total revenues for the third quarter were $21.0 million, a decrease from $22.4 million in the prior year, primarily due to a decline in interest income from commercial real estate (CRE) loans, which fell to $28.1 million from $38.7 million year-over-year.
The company’s total assets decreased to $1.7 billion as of September 30, 2025, down from $1.9 billion at the end of 2024. This decline was attributed to a reduction in the carrying value of CRE loans, which decreased to $1.4 billion from $1.5 billion. The allowance for credit losses also improved, decreasing to $26.4 million from $32.8 million, reflecting a reversal of expected credit losses due to improvements in the credit risk profile of the loan portfolio. The company’s total liabilities also decreased to $1.3 billion from $1.4 billion, primarily due to reduced borrowings.
Strategically, ACRES Commercial Realty has focused on managing its liquidity and capital resources amid challenging market conditions, including rising interest rates and inflation. The company originated two new CRE floating-rate whole loans totaling $162 million during the nine months ended September 30, 2025, while also experiencing significant loan payoffs and sales amounting to $318.6 million. The company’s portfolio remains concentrated in multifamily properties, which constituted 74.6% of its total loan portfolio as of September 30, 2025.
Looking ahead, ACRES Commercial Realty aims to leverage its net operating loss carryforwards of $32.1 million and net capital loss carryforwards of $115.9 million to enhance its investable base and selectively deploy capital into new loan originations. The company has not paid any common share distributions during the nine months ended September 30, 2025, as it focuses on retaining liquidity and managing its capital structure. The management remains cautious about the economic environment but is actively monitoring opportunities to enhance returns and stabilize earnings.
About ACRES Commercial Realty Corp.
ACRES Commercial Realty Corp. is a Maryland-based real estate finance company focused on originating and managing commercial real estate (CRE) mortgage loans and equity investments. Targeting the multifamily, student housing, hospitality, industrial, and office sectors, it operates primarily in top U.S. markets. With a portfolio of $1.9 billion, ACRES aims to provide stockholders with total returns through strategic investments and risk management, while adhering to REIT regulations.
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