Revenue: As of FY2026 Q1, the actual value is USD 17.82 M.EPS: As of FY2026 Q1, the actual value is USD -0.16, beating the estimate of USD -0.165.EBIT: As of FY2026 Q1, the actual value is USD -5.321 M.ACRES Commercial Realty Corp. operates as a single segment focusing on CRE lending operations .<h4>Operational Performance and Net Income</h4>For the three months ended March 31, 2026, ACRES Commercial Realty Corp. reported a net loss allocable to common shares of - $1.0 million, or - $0.16 per basic and diluted share . This is an improvement compared to a net loss of - $5.9 million, or - $0.80 per basic and diluted share, for the three months ended March 31, 2025 .<h4>Revenue</h4>Total revenues for the three months ended March 31, 2026, were $17.8 million, an increase from $17.0 million for the same period in 2025 . Interest Income: Total interest income increased by $5.6 million (20%) to $34.4 million for the three months ended March 31, 2026, from $28.7 million in the prior year period . This increase was primarily driven by a $4.3 million increase in CRE whole loans due to higher portfolio volume, partially offset by a decrease in benchmark rates . Interest income from CRE preferred equity loans increased by $247,000 due to a new origination in September 2025, while CRE mezzanine loans decreased by - $63,000 due to origination and payoff during fiscal year 2025 . Other interest income increased by $1.2 million, mainly from restricted cash in a new CRE securitization and higher yields on money market accounts . Real Estate Income and Other Revenue: Aggregate real estate income and other revenue decreased by - $2.8 million (25%) to $8.6 million for the three months ended March 31, 2026, from $11.4 million in the prior year period . This decrease was primarily due to the sale of a student housing property in September 2025 and an office property in December 2025, partially offset by increased revenues at a hotel property in the Northeast region .<h4>Operating Expenses</h4>Total operating expenses decreased by - $3.3 million (19%) to $13.9 million for the three months ended March 31, 2026, from $17.2 million in the prior year period . General and Administrative: Decreased by - $123,000 (4%) to $3.0 million, primarily due to lower professional services related to consulting fees paid in Q1 2025 for prior year services . Real Estate Expenses: Decreased by - $3.6 million (27%) to $9.7 million, mainly due to the sale of properties and reduced operating expenses at a student housing property . Management Fees - Related Party: Decreased by - $70,000 (4%) to $1.6 million . Equity Compensation - Related Party: Decreased by - $275,000 (34%) to $540,000 due to the amortization of unvested shares following a portion vesting in May 2025 . Reversal of Credit Losses, Net: The reversal decreased by - $750,000 (44%) to - $967,000, primarily due to improvements in projected macroeconomic factors offset by an increase in modeled credit risk .<h4>Net Interest Income and Cost of Funds</h4>Net interest income increased by $3.6 million for the three months ended March 31, 2026, compared to the same period in 2025, driven by a $6.6 million increase due to volume changes and a - $3.0 million decrease due to rate changes . Average Net Yield: The average net yield on interest-earning assets was 6.98% for the three months ended March 31, 2026, down from 8.02% in the prior year period . Average Cost of Funds: The average cost of funds was - 5.96% for the three months ended March 31, 2026, an improvement from - 7.55% in the prior year period .<h4>Cash Flow</h4><ul><li>Net Cash Provided by (Used in) Operating Activities: Net cash provided by operating activities was $913,000 for the three months ended March 31, 2026, compared to net cash used in operating activities of - $4.6 million for the three months ended March 31, 2025 .</li><li>Net Cash (Used in) Provided by Investing Activities: Net cash used in investing activities was - $351.7 million for the three months ended March 31, 2026, significantly different from net cash provided by investing activities of $117.7 million for the same period in 2025 . This change was primarily due to higher principal fundings of CRE loans ( - $481.9 million in 2026 vs. - $26.5 million in 2025) and lower principal payments received on CRE loans ($81.5 million in 2026 vs. $115.9 million in 2025) .</li><li>Net Cash Provided by (Used in) Financing Activities: Net cash provided by financing activities was $314.6 million for the three months ended March 31, 2026, a substantial increase from net cash used in financing activities of - $104.1 million for the same period in 2025 . This was largely due to $879.5 million in proceeds from securitizations in 2026, compared to none in 2025, and a significant decrease in payments on securitizations (none in 2026 vs. - $865.1 million in 2025) .</li></ul><h4>Investment Portfolio and Related Metrics</h4><ul><li>CRE Loan Portfolio: The carrying value of the CRE loan portfolio was $2.2 billion at March 31, 2026, up from $1.8 billion at December 31, 2025 .<ul><li>Loan Originations and Commitments (Q1 2026): ACRES Commercial Realty Corp. originated nine new CRE floating-rate whole loans, purchased one new CRE floating-rate whole loan, and purchased a participation in an existing CRE floating-rate whole loan, totaling $495.6 million in commitments, with $13.6 million funded . These were offset by $110.6 million in loan payoffs and sales and - $24.2 million in unfunded commitments, resulting in a net increase of $374.4 million to the portfolio .</li><li>Loan Originations and Commitments (FY 2025): The company originated 14 new CRE floating-rate whole loans ($733.0 million total commitments), one new $15.0 million CRE mezzanine loan, and one new $9.3 million CRE preferred equity investment, with net funded commitments of $3.1 million . Loan payoffs and sales were $418.9 million, leading to a net increase of $341.5 million to the portfolio .</li><li>Property Type Allocation (March 31, 2026): Multifamily (81.5%), Office (10.9%), Hotel (4.7%), Mixed-Use (2.2%), Self-Storage (0.7%) .</li><li>Property Type Allocation (December 31, 2025): Multifamily (81.9%), Office (12.7%), Hotel (3.2%), Mixed-Use (1.4%), Self-Storage (0.8%) .</li><li>Geographic Location (March 31, 2026): Southeast (19.0%), Southwest (16.9%), East North Central (14.1%), Mountain (13.0%), Northeast (12.6%), Mid Atlantic (10.4%), Pacific (10.3%), West North Central (3.7%) .</li><li>Geographic Location (December 31, 2025): Southeast (20.6%), Southwest (24.2%), East North Central (4.0%), Mountain (12.3%), Northeast (9.1%), Mid Atlantic (12.3%), Pacific (14.0%), West North Central (3.5%) .</li><li>Credit Quality Indicators (Amortized Cost at March 31, 2026): Rating 1: $28.2 million; Rating 2: $1,333.5 million; Rating 3: $455.3 million; Rating 4: $380.3 million; Rating 5: $5.6 million .</li><li>Credit Quality Indicators (Amortized Cost at December 31, 2025): Rating 1: $28.1 million; Rating 2: $947.8 million; Rating 3: $470.9 million; Rating 4: $377.9 million; Rating 5: $5.6 million .</li><li>Unfunded Loan Commitments: $99.3 million at March 31, 2026, and $88.6 million at December 31, 2025 .</li><li>Loans in Payment Default: Four CRE whole loans with total amortized costs of $83.5 million at March 31, 2026, and three CRE whole loans with total amortized costs of $59.1 million at December 31, 2025 .</li></ul></li><li>Preferred Equity Investments: One preferred equity investment with a carrying value of $9.5 million at March 31, 2026, and $9.2 million at December 31, 2025 .</li><li>Borrowings: Total outstanding borrowings were $1.9 billion at March 31, 2026, and $1.5 billion at December 31, 2025 .<ul><li>Composition (March 31, 2026): CRE debt securitization (46.9%), CRE - term reinvestment financing facility (38.0%), 5.75% Senior Unsecured Notes (8.0%), Senior secured financing facility (2.2%), Unsecured junior subordinated debentures (2.8%), CRE - term warehouse financing facilities (1.0%), Mortgage payable (1.1%) .</li><li>Weighted Average Borrowing Rate: 5.58% at March 31, 2026, down from 5.73% at December 31, 2025 .</li><li>Weighted Average Remaining Maturity: 10.7 years at March 31, 2026, up from 3.1 years at December 31, 2025 .</li></ul></li><li>CECL Allowance: $19.4 million (0.9% of the loan portfolio) at March 31, 2026, compared to $20.4 million (1.1% of the loan portfolio) at December 31, 2025 .</li><li>Real Estate-Related Assets: Net carrying value of $106.3 million on five properties at March 31, 2026 .</li></ul><h4>Future Outlook and Strategy</h4>ACRES Commercial Realty Corp. aims to provide stockholders with total returns through quarterly distributions and capital appreciation, while managing risks and maximizing long-term stockholder value by maintaining liquidity and a diversified CRE loan portfolio . The company announced a Merger Agreement on April 29, 2026, to acquire its Manager and transition to an internally-managed REIT, subject to common stockholder approval . The closing of the Merger is expected early in the third quarter of 2026 .

ACRES Commercial Realty | 10-Q: FY2026 Q1 Revenue: USD 17.82 M