ACRES Commercial Realty Corp.

AI-generated fair value estimate for this company.

Method: Credit-risk-adjusted net asset value (stressed book value) approach: starting GAAP book value per common share of $26.76 at 6/30/2026 (total ACRES stockholders' equity of $413.3M less approximately $232.7M preferred liquidation preference, divided by 7.076M common shares outstanding); less $4.10/share incremental credit-loss haircut (12% assumed severity on the $294M of CRE loans, 14% of the $2.1B portfolio, risk-rated 4-5, net of approximately $6.3M already-allocated specific reserves against the $21.1M total CECL allowance); less $0.35/share for guided Q3 2026 internalization transaction costs; then a 12% discount applied to the remainder for governance and execution risk and the currently suspended common dividend.

Reasoning: ACR is a commercial mortgage REIT undergoing an internalization of management with a $2.1B loan portfolio, thin CECL reserves (99bps) relative to a meaningfully at-risk loan book, and no common dividend currently paid, so a standard FCF-based DCF is not a meaningful framework; an asset-based approach anchored to book value, adjusted for realistic incremental credit losses and near-term transition costs, better captures intrinsic value for a REIT balance sheet, and the added discount reflects genuine governance and liquidity risk without simply adopting the market's currently very depressed price-to-book multiple as a shortcut.