ACRES Commercial Realty Corp
For the period ended Dec 31, 2023. Filed Mar 7, 2024.
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FY2023 · Filed Mar 7, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| ACRES COMMERCIAL REALTY CORP. | ||
| March 6, 2024 | By: | /s/ Mark Fogel |
|---|---|---|
| Mark Fogel | ||
| President & Chief Executive Officer | ||
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| /s/ Andrew Fentress | Chairman of the Board | March 6, 2024 |
|---|---|---|
| ANDREW FENTRESS | ||
| /s/ Mark Fogel | President, Chief Executive Officer & Director | March 6, 2024 |
| MARK FOGEL | (Principal Executive Officer) | |
| /s/ Karen Edwards | Director | March 6, 2024 |
| KAREN EDWARDS | ||
| /s/ William B. Hart | Director | March 6, 2024 |
| WILLIAM B. HART | ||
| /s/ Gary Ickowicz | Director | March 6, 2024 |
| GARY ICKOWICZ | ||
| /s/ Steven J. Kessler | Director | March 6, 2024 |
| STEVEN J. KESSLER | ||
| /s/ Murray S. Levin | Director | March 6, 2024 |
| MURRAY S. LEVIN | ||
| /s/ P. Sherrill Neff | Director | March 6, 2024 |
| P. SHERRILL NEFF | ||
| /s/ Dawanna Williams | Director | March 6, 2024 |
| DAWANNA WILLIAMS | ||
| /s/ David J. Bryant | Director | March 6, 2024 |
| DAVID J. BRYANT | ||
| /s/ Eldron C. Blackwell | Senior Vice President | March 6, 2024 |
| ELDRON C. BLACKWELL | Chief Financial Officer and Treasurer | |
| (Principal Financial Officer) | ||
| /s/ Linda M. Kilpatrick | Vice President | March 6, 2024 |
| LINDA M. KILPATRICK | Chief Accounting Officer and Controller | |
| (Principal Accounting Officer) | ||
SCHEDULE II
Valuation and Qualifying Accounts
| Balance at Beginning of Period | Charge to Expense | Loans Charged off/Recovered | Balance at End of Period | |
|---|---|---|---|---|
| Allowance for credit losses: | ||||
| Year Ended December 31, 2023 | $18,803 | $10,902 | $(948) | $28,757 |
| Year Ended December 31, 2022 | $8,805 | $12,295 | $(2,297) | $18,803 |
| Year Ended December 31, 2021 | $34,310 | $(21,262) | $(4,243) | $8,805 |
SCHEDULE III
Real Estate and Accumulated Depreciation
| Initial Cost to Company · Gross Amount of Which Carried at Close of Period | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Encumbrances · Land · Buildings and Improvements · Costs Capitalized Subsequent to Acquisition - Improvements · Land · Buildings and Improvements · Total · Accumulated Depreciation · Year of Construction · Date Acquired · Life on Which Depreciation in Latest Statements of Comprehensive Income is Computed | ||||||||||||||||||||||
| Hotel property, Northeast region (held for sale) (1)(2)(3)(4) | $16,567 | $— | $30,944 | $5,437 | $— | $36,381 | $36,381 | $(2,823) | 2000 | November 2020 | 34.8 years | |||||||||||
| Office property, Northeast region (4) | N/A | 8,189 | 4,706 | 220 | 8,189 | 4,926 | 13,115 | (630) | 1999 | October 2021 | 38.6 years | |||||||||||
| Unimproved land, Northeast region | N/A | 14,203 | — | 1,915 | 14,203 | 1,883 | 16,086 | — | N/A | November 2021 | N/A | |||||||||||
| Student housing property, Southeast region (4) | 43,779 | 15,976 | 19,114 | 42,922 | 15,976 | 62,036 | 78,012 | (964) | 2003 | April 2022 | 38.4 years | |||||||||||
| Hotel property, East North Central region (3)(4) | 16,921 | — | 51,353 | 4,096 | — | 55,449 | 55,449 | (3,448) | 1982 | April 2022 | 36.4 years | |||||||||||
| Office property, East North Central region (held for sale) (1)(2) | N/A | — | 20,900 | — | — | 20,900 | 20,900 | — | 1896 | June 2023 | N/A | |||||||||||
| Total | $77,267 | $38,368 | $127,017 | $54,590 | $38,368 | $181,575 | $219,943 | $(7,865) | ||||||||||||||
(1)
The property is being held for sale and is evaluated at the lower of cost or fair value.
(2)
The property was acquired through a deed in lieu of foreclosure transaction.
(3)
The property is included as collateral on our senior secured financing facility.
(4)
The life on which depreciation in latest statements of comprehensive income is computed was calculated as the weighted average of the useful lives of the building, site improvements and tenant improvements, which comprise the investments in the properties.
SCHEDULE III
Real Estate and Accumulated Depreciation - (Continued)
The following table rolls forward our gross investments in real estate and the related accumulated depreciation:
| Years Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| Investments in Real Estate: | |||
| Balance at beginning of period | $158,760 | $75,989 | $30,944 |
| Additions during period: | |||
| Acquisitions through deed-in-lieu of foreclosure | 20,900 | 13,442 | 17,889 |
| Other acquisitions | — | 86,444 | 27,065 |
| Improvements, etc. | 53,761 | 731 | 134 |
| Deductions during period: | |||
| Other | (13,478) | (17,846) | (43) |
| Balance at close of period | $219,943 | $158,760 | $75,989 |
| Accumulated Depreciation: | |||
| Balance at beginning of period | $(3,464) | $(1,204) | $(112) |
| Additions during period: | |||
| Depreciation expense | (4,401) | (2,260) | (1,092) |
| Balance at close of period | $(7,865) | $(3,464) | $(1,204) |
SCHEDULE IV
Mortgage Loans on Real Estate
At December 31, 2023
(in thousands, except amounts in footnotes)
| Type of Loan/Borrower · Description /Location · InterestPayment Rates (1) · MaturityDate (2) · PeriodicPaymentTerms (3) · PriorLiens · FaceAmountof Loans · NetCarryingAmountof Loans(4) · PrincipalAmount ofLoans Subjectto DelinquentPrincipal orInterest | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CRE whole loans: | ||||||||||||
| CRE whole loans in excess of 3% of the carrying amount of total loans | ||||||||||||
| Borrower A | Multifamily/Rock Hill, SC | 1M BR + 3.41%FLOOR 0.10% | 2025 | I/O | — | $70,256 | $70,021 | $— | ||||
| CRE whole loans less than 3% of the carrying amount of total loans | ||||||||||||
| CRE whole loan (5) | Multifamily/Diversified | 1M BR + 2.86% - 4.36%FLOOR 0.05% - 4.00% | 2024-2027 | I/O & P/I | — | 1,406,600 | 1,402,059 | — | ||||
| CRE whole loan (5)(6) | Office/Diversified | 1M BR + 2.50% - 5.75%FLOOR 0.10% - 2.40% | 2024-2026 | I/O & P/I | — | 252,892 | 252,093 | 33,127 | ||||
| CRE whole loan | Hotel/Diversified | 1M BR + 6.25% - 8.61%FLOOR 0.05% - 3.02% | 2024 | I/O | — | 71,493 | 71,408 | — | ||||
| CRE whole loan | Self-Storage/Diversified | 1M BR + 3.96% - 5.50%FLOOR 0.10% - 4.50% | 2024-2026 | I/O | — | 48,999 | 48,787 | — | ||||
| CRE whole loan (6) | Retail/Diversified | 1M BR + 4.76%FLOOR 2.05% | I/O | — | 8,025 | 8,025 | 8,025 | |||||
| Total CRE whole loans | 1,858,265 | 1,852,393 | 41,152 | |||||||||
| Mezzanine loans: | ||||||||||||
| Mezzanine loans less than 3% of the carrying amount of total loans | ||||||||||||
| Mezzanine loans (7)(8) | Various/Diversified | 10.00% | 2028 | 42,772 | 4,700 | 42,772 | ||||||
| Total mezzanine loans | 42,772 | 4,700 | 42,772 | |||||||||
| Total loans | 1,901,037 | 1,857,093 | 83,924 | |||||||||
| Allowance for credit losses | (28,757) | |||||||||||
| Total loans, net | $1,828,336 | |||||||||||
(1)
The benchmark rate, “BR” comprises the Term Secured Overnight Financing Rate (“SOFR”), which is used as a benchmark on our CRE whole loans.
(2)
Maturity dates exclude extension options that may be available to borrower.
(3)
I/O = interest only, P/I = principal and interest.
(4)
The net carrying amount of loans includes an individually determined allowance for credit losses of $4.7 million and a general allowance for credit losses of $24.1 million at December 31, 2023.
(5)
Includes three office loans andtwo multifamily loans with total par of $92.2 million that are amortizing loans.
(6)
Maturity dates exclude two office loans and one retail loan in maturity default at December 31, 2023.
(7)
Includesone mezzanine loan with a par of $4.7 million that had an individually determined reserve of $4.7 million.
(8)
Includesone mezzanine loan with a par of $38.1 million and a carrying value ofzero in default at December 31, 2023.
SCHEDULE IV
Mortgage Loans on Real Estate - (Continued)
At December 31, 2023
The following table reconciles our CRE loans carrying amounts for the periods indicated:
| Years Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| Balance at beginning of year | $2,038,787 | $1,873,746 | $1,507,682 |
| Additions during the period: | |||
| New loans originated or acquired | 62,968 | 523,259 | 1,367,157 |
| Funding of existing loan commitments | 45,749 | 66,296 | 29,855 |
| Amortization of loan origination and extension fees and loan origination costs, net | 7,539 | 8,189 | 8,337 |
| (Provision for) reversal of credit losses, net | (10,902) | (12,295) | 21,262 |
| Loans charged-off | 948 | 2,297 | 4,243 |
| Capitalized interest and loan acquisition costs | — | — | 228 |
| Deductions during the period: | |||
| Payoff, paydown and sale of loans | (293,158) | (399,550) | (1,028,916) |
| Deed in lieu of foreclosure | (22,797) | (14,000) | (19,900) |
| Capitalized origination and extension fees | (798) | (6,858) | (16,202) |
| Loss on discounted payoff | — | (2,297) | — |
| Balance at end of year | $1,828,336 | $2,038,787 | $1,873,746 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.