MeritValue

ACRES Commercial Realty Corp.

ACRdata completeness 88%17 fiscal years on file
The thesis, from the filings

ACRES Commercial Realty Corp. earns about 5% on invested capital, and has bought back 24% of its shares over 5 years. The applicable estimate puts fair value near $39.11 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$50.1M1$75.2M2$91.1M3$83.5M3$79.9M3
Net income$33.9M4$10.4M4$21.8M4$28.7M4$28M4
Operating cash flow$40.6M5$32.7M6$45.6M7$19.4M7$4.1M7
Capital expenditure—————
Free cash flow (derived)—————
Total debt$1.84B8$1.88B9$1.69B10$1.37B11$1.55B12
Cash & equivalents$35.5M13$66.2M14$83.4M15$56.7M16$83.8M16
Diluted shares9.8M8.8M8.6M7.9M7.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$567.65
your share of equity
Profit it earned you last year
$37.74
Free cash flow it threw off
—
Debt you’d be carrying
$2,091.75

10 shares is a claim on $567.65 of net worth that earned you $37.74 last year, against $2,091.75 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
5% avg · 5y
FY21 4%FY22 4%FY23 7%FY24 4%FY25 3%

It earned an average 5% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−24% shares · 5y

Share count is down 24% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 16% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$39.11
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$28M
  • growthAssumed0.0%
Graham Number
$6.19
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000950170-24-027462 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0000950170-25-039661 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001193125-26-098916 (Revenues)
  4. 10-K/A · period ending 2021-12-31 · accession 0001193125-26-197603 (NetIncomeLoss)
  5. 10-K · period ending 2021-12-31 · accession 0000950170-24-027462 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2022-12-31 · accession 0000950170-25-039661 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2023-12-31 · accession 0001193125-26-098916 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2021-12-31 · accession 0001564590-22-009161 (LongTermDebt)
  9. 10-K · period ending 2022-12-31 · accession 0000950170-23-006479 (LongTermDebt)
  10. 10-K · period ending 2023-12-31 · accession 0000950170-24-027462 (LongTermDebt)
  11. 10-K · period ending 2024-12-31 · accession 0000950170-25-039661 (LongTermDebt)
  12. 10-K · period ending 2025-12-31 · accession 0001193125-26-098916 (LongTermDebt)
  13. 10-K · period ending 2021-12-31 · accession 0000950170-23-006479 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0000950170-24-027462 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-12-31 · accession 0000950170-25-039661 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-12-31 · accession 0001193125-26-098916 (CashAndCashEquivalentsAtCarryingValue)