ACRES Commercial Realty Corp. Declares Quarterly Cash Dividends for its Preferred Stock
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Insights
The declaration of cash dividends by ACRES Commercial Realty Corp. on its Preferred Stock is a pivotal event for shareholders, particularly those holding Series C and Series D Preferred Stock. The specific rates of 8.625% for Series C and 7.875% for Series D are indicative of the yield investors can expect from holding these securities. These rates are relatively high, suggesting the company is seeking to reward its investors with attractive returns, possibly reflecting a higher risk profile or a strategy to retain and attract investors.
Dividends are a key factor in the total return on investment for shareholders and can signal a company's financial health and profitability. In the short-term, dividend payments often lead to an uptick in share price due to the anticipated cash flow to investors. In the long-term, consistent and potentially growing dividends can contribute to a positive reputation among investors, potentially leading to increased demand for the shares.
However, it is crucial to monitor the company's ability to sustain such dividend payouts without compromising its financial stability. A high dividend yield can sometimes be unsustainable and may lead to future cuts if the company's earnings do not support the payouts. Investors often look at the payout ratio, which is the proportion of earnings paid out as dividends, to assess sustainability.
Within the commercial realty sector, dividend payouts are a common practice used to distribute profits back to investors. The rates declared by ACRES Commercial Realty Corp. are competitive and could be seen as an attempt to stand out in a crowded market. It is also a reflection of the company's capital allocation strategy, which prioritizes returning capital to shareholders over reinvesting it back into the company or saving for future opportunities.
Investors often compare the dividend yields of companies within the same industry to gauge relative attractiveness. A company offering higher yields may be perceived as a better income investment. However, it is important to consider the company’s debt levels and operational performance, as these can affect future dividend sustainability. A balance sheet heavily weighted with debt might constrain the company’s ability to maintain dividend payments if revenue or profit margins decline.
It is also worth noting that preferred stock dividends are typically paid out before common stock dividends, which provides an additional layer of security for preferred shareholders, but also implies a commitment that the company must honor before any potential common stock dividend increases or share repurchase programs.
The Company will pay a cash dividend on its
The Company will also pay a cash dividend on its
About ACRES Commercial Realty Corp.
ACRES Commercial Realty Corp. is a real estate investment trust that is primarily focused on originating, holding and managing commercial real estate ("CRE") mortgage loans and equity investments in commercial real estate property through direct ownership and joint ventures. The Company is externally managed by ACRES Capital, LLC, a subsidiary of ACRES Capital Corp., a private commercial real estate lender exclusively dedicated to nationwide middle market CRE lending with a focus on multifamily, student housing, hospitality, industrial and office property in top
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "trend," "will," "continue," "expect," "intend," "anticipate," "estimate," "believe," "look forward" or other similar words or terms. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. Factors that can affect future results are discussed in the documents filed by the Company from time to time with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statement to reflect new or changing information or events after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.
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SOURCE ACRES Commercial Realty Corp.
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