ACRES Commercial Realty Reports Strong Q4 Loan Growth and Improving Credit Trends

The commercial real estate lender detailed the impact of a legacy mezzanine loan charge-off on distributable results.

Published on Mar. 6, 2026

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ACRES Commercial Realty (NYSE:ACR) highlighted strong loan growth and improving portfolio credit trends during its fourth-quarter 2025 earnings call, while also detailing the impact of a legacy mezzanine loan charge-off on distributable results. Management said the quarter's origination activity, along with early 2026 production, enabled the company to complete a new commercial real estate securitization in January and close the transaction in February.

Why it matters

ACRES' strong loan growth and credit quality improvements demonstrate the company's ability to navigate the commercial real estate market, while the mezzanine loan charge-off highlights the challenges of managing legacy assets. The new securitization also provides ACRES with additional funding capacity to support future growth.

The details

ACRES closed $571 million of new loan commitments in Q4 2025, a 77% increase from the prior quarter. The company's weighted average loan spread was 2.83%, with the majority of new originations in the multifamily sector. ACRES also completed a $1 billion commercial real estate securitization in February 2026, with 86.5% leverage and a weighted average debt spread of 1.68%. The company's overall loan portfolio stood at $1.8 billion across 53 investments, with the weighted average risk rating improving to 2.7 from 3.0 in the prior quarter. However, ACRES did report a $4.7 million charge-off related to a legacy mezzanine loan, which impacted its distributable earnings for the quarter.

  • ACRES closed $571 million of new loan commitments in Q4 2025.
  • ACRES completed a $1 billion commercial real estate securitization in February 2026.
  • ACRES reported a $4.7 million charge-off related to a legacy mezzanine loan in Q4 2025.

The players

ACRES Commercial Realty

A real estate investment trust (REIT) that focuses on the origination, holding, and management of commercial real estate mortgage loans and equity investments in the United States.

Mark Fogel

President and CEO of ACRES Commercial Realty.

Eldron Blackwell

CFO of ACRES Commercial Realty.

Andrew Fentress

Chairman of ACRES Commercial Realty.

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