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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to __________

 

Commission File Number: 1-32733

img82327870_0.jpg 

ACRES COMMERCIAL REALTY CORP.

(Exact name of registrant as specified in its charter)

 

Maryland



 

 

20-2287134

(State or other jurisdiction of



 

 

(I.R.S. Employer

incorporation or organization)



 

 

Identification No.)

390 RXR Plaza, Uniondale, New York 11556

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: 516-535-0015

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.001 par value

 

ACR

 

New York Stock Exchange

8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock

 

ACRPrC

 

New York Stock Exchange

7.875% Series D Cumulative Redeemable Preferred Stock

 

ACRPrD

 

New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

The number of outstanding shares of the registrant’s common stock on May 7, 2024 was 7,958,714 shares.

 

 


ACRES COMMERCIAL REALTY CORP. AND SUBSIDIARIES

INDEX TO QUARTERLY REPORT

ON FORM 10-Q

 

PAGE

PART I

3

Item 1:

Financial Statements

3

Consolidated Balance Sheets – March 31, 2024 (unaudited) and December 31, 2023

3

Consolidated Statements of Operations (unaudited) for the Three Months Ended March 31, 2024 and 2023

5

Consolidated Statements of Comprehensive Income (Loss) (unaudited) for the Three Months Ended March 31, 2024 and 2023

6

Consolidated Statements of Changes in Equity (unaudited) for the Three Months Ended March 31, 2024 and 2023

7

Consolidated Statements of Cash Flows (unaudited) for the Three Months Ended March 31, 2024 and 2023

9

Notes to Consolidated Financial Statements – March 31, 2024 (unaudited)

10

Item 2:

Management’s Discussion and Analysis of Financial Condition and Results of Operations

40

Item 3:

Quantitative and Qualitative Disclosures About Market Risk

69

Item 4:

Controls and Procedures

71

PART II

72

Item 1:

Legal Proceedings

72

Item 1A:

Risk Factors

72

Item 2:

Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities

72

Item 5:

Other Information

72

Item 6:

Exhibits

74

SIGNATURES

78

 


PART I

ITEM 1. FINANCIAL STATEMENTS

ACRES COMMERCIAL REALTY CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

 

 

 

March 31, 2024

 

 

December 31, 2023

 

 

 

(unaudited)

 

 

 

 

ASSETS (1)

 

 

 

 

 

 

Cash and cash equivalents

 

$

84,600

 

 

$

83,449

 

Restricted cash

 

 

4,035

 

 

 

8,437

 

Accrued interest receivable

 

 

11,889

 

 

 

11,783

 

CRE loans

 

 

1,774,883

 

 

 

1,857,093

 

Less: allowance for credit losses

 

 

(33,653

)

 

 

(28,757

)

CRE loans, net

 

 

1,741,230

 

 

 

1,828,336

 

Loan receivable - related party

 

 

10,925

 

 

 

10,975

 

Investments in unconsolidated entities

 

 

21,671

 

 

 

1,548

 

Properties held for sale

 

 

62,986

 

 

 

62,605

 

Investments in real estate

 

 

171,284

 

 

 

157,621

 

Right of use assets

 

 

19,799

 

 

 

19,879

 

Intangible assets

 

 

7,638

 

 

 

7,882

 

Other assets

 

 

3,795

 

 

 

3,590

 

Total assets

 

$

2,139,852

 

 

$

2,196,105

 

LIABILITIES (2)

 

 

 

 

 

 

Accounts payable and other liabilities

 

$

13,873

 

 

$

13,963

 

Management fee payable - related party

 

 

541

 

 

 

584

 

Accrued interest payable

 

 

5,990

 

 

 

8,459

 

Borrowings

 

 

1,625,499

 

 

 

1,676,200

 

Lease liabilities

 

 

44,439

 

 

 

44,276

 

Distributions payable

 

 

3,229

 

 

 

3,262

 

Accrued tax liability

 

 

43

 

 

 

121

 

Liabilities held for sale

 

 

3,073

 

 

 

3,025

 

Total liabilities

 

 

1,696,687

 

 

 

1,749,890

 

EQUITY

 

 

 

 

 

 

Preferred stock, par value $0.001: 10,000,000 shares authorized 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share; 4,800,000 and 4,800,000 shares issued and outstanding

 

 

5

 

 

 

5

 

Preferred stock, par value $0.001: 6,800,000 shares authorized 7.875% Series D Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share; 4,507,857 and 4,607,857 shares issued and outstanding

 

 

5

 

 

 

5

 

Common stock, par value $0.001: 41,666,666 shares authorized; 7,685,300 and 7,878,216 shares issued and outstanding (including 416,675 and 416,675 unvested restricted shares)

 

 

8

 

 

 

8

 

Additional paid-in capital

 

 

1,165,999

 

 

 

1,169,970

 

Accumulated other comprehensive loss

 

 

(4,404

)

 

 

(4,801

)

Distributions in excess of earnings

 

 

(728,835

)

 

 

(729,391

)

Total stockholders’ equity

 

 

432,778

 

 

 

435,796

 

Non-controlling interests

 

 

10,387

 

 

 

10,419

 

Total equity

 

 

443,165

 

 

 

446,215

 

TOTAL LIABILITIES AND EQUITY

 

$

2,139,852

 

 

$

2,196,105

 

 

 

 

The accompanying notes are an integral part of these statements

(Back to Index)

3


 

ACRES COMMERCIAL REALTY CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - (Continued)

(in thousands, except share and per share data)

 

 

 

March 31, 2024

 

 

December 31, 2023

 

 

 

(unaudited)

 

 

 

 

(1) Assets of consolidated variable interest entities (“VIEs”) included in total assets above:

 

 

 

 

 

 

Restricted cash

 

$

190

 

 

$

220

 

Accrued interest receivable

 

 

9,340

 

 

 

9,188

 

CRE loans, pledged as collateral (3)

 

 

1,409,013

 

 

 

1,466,463

 

Other assets

 

 

56

 

 

 

71

 

Total assets of consolidated VIEs

 

$

1,418,599

 

 

$

1,475,942

 

(2) Liabilities of consolidated VIEs included in total liabilities above:

 

 

 

 

 

 

Accounts payable and other liabilities

 

$

142

 

 

$

143

 

Accrued interest payable

 

 

3,634

 

 

 

3,828

 

Borrowings

 

 

1,146,812

 

 

 

1,204,569

 

Total liabilities of consolidated VIEs

 

$

1,150,588

 

 

$

1,208,540

 

 

(3)
Excludes the allowance for credit losses.

The accompanying notes are an integral part of these statements

(Back to Index)

4


ACRES COMMERCIAL REALTY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(unaudited)

 

 

 

For the Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

REVENUES

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

CRE loans

 

$

41,866

 

 

$

44,470

 

Other

 

 

745

 

 

 

859

 

Total interest income

 

 

42,611

 

 

 

45,329

 

Interest expense

 

 

31,251

 

 

 

31,375

 

Net interest income

 

 

11,360

 

 

 

13,954

 

Real estate income

 

 

7,371

 

 

 

7,071

 

Other revenue

 

 

37

 

 

 

33

 

Total revenues

 

 

18,768

 

 

 

21,058

 

OPERATING EXPENSES

 

 

 

 

 

 

General and administrative

 

 

3,255

 

 

 

2,979

 

Real estate expenses

 

 

9,531

 

 

 

8,860

 

Management fees - related party

 

 

1,627

 

 

 

1,773

 

Equity compensation - related party

 

 

477

 

 

 

894

 

Corporate depreciation and amortization

 

 

8

 

 

 

23

 

Provision for credit losses, net

 

 

4,896

 

 

 

5,096

 

Total operating expenses

 

 

19,794

 

 

 

19,625

 

 

 

 

(1,026

)

 

 

1,433

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

Gain on conversion of real estate

 

 

5,835

 

 

 

 

Gain on sale of real estate

 

 

 

 

 

745

 

Other income

 

 

115

 

 

 

110

 

Total other income

 

 

5,950

 

 

 

855

 

INCOME BEFORE TAXES

 

 

4,924

 

 

 

2,288

 

Income tax benefit

 

 

 

 

 

5

 

NET INCOME

 

 

4,924

 

 

 

2,293

 

Net income allocated to preferred shares

 

 

(4,822

)

 

 

(4,855

)

Carrying value in excess of consideration paid for preferred shares

 

 

242

 

 

 

 

Net loss allocable to non-controlling interest, net of taxes

 

 

212

 

 

 

146

 

NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES

 

$

556

 

 

$

(2,416

)

NET INCOME (LOSS) PER COMMON SHARE - BASIC

 

$

0.07

 

 

$

(0.28

)

NET INCOME (LOSS) PER COMMON SHARE - DILUTED

 

$

0.07

 

 

$

(0.28

)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC

 

 

7,754,130

 

 

 

8,500,413

 

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED

 

 

8,033,813

 

 

 

8,500,413

 

 

 

 

The accompanying notes are an integral part of these statements

(Back to Index)

5


ACRES COMMERCIAL REALTY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

(unaudited)

 

 

 

For the Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

Net income

 

$

4,924

 

 

$

2,293

 

Other comprehensive income:

 

 

 

 

 

 

Reclassification adjustments associated with net unrealized losses from interest rate swaps included in net income

 

 

397

 

 

 

393

 

Total other comprehensive income

 

 

397

 

 

 

393

 

Comprehensive income before allocation to preferred shares

 

 

5,321

 

 

 

2,686

 

Net loss allocated to non-controlling interests shares

 

 

212

 

 

 

146

 

Carrying value in excess of consideration paid for preferred shares

 

 

242

 

 

 

 

Net income allocated to preferred shares

 

 

(4,822

)

 

 

(4,855

)

Comprehensive income (loss) allocable to common shares

 

$

953

 

 

$

(2,023

)

 

 

 

The accompanying notes are an integral part of these statements

(Back to Index)

6


ACRES COMMERCIAL REALTY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(in thousands, except share and per share data)

(unaudited)

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Series C Preferred Stock

 

 

Series D Preferred Stock

 

 

Additional Paid-In Capital

 

 

Accumulated Other Comprehensive Loss

 

 

Retained Earnings (Distributions in Excess of Earnings)

 

 

Total Stockholders’ Equity

 

 

Non-Controlling Interest

 

 

Total Equity

 

Balance, December 31, 2023

 

 

7,878,216

 

 

$

8

 

 

$

5

 

 

$

5

 

 

$

1,169,970

 

 

$

(4,801

)

 

$

(729,391

)

 

$

435,796

 

 

$

10,419

 

 

$

446,215

 

Purchase and retirement of common stock

 

 

(194,827

)

 

 

 

 

 

 

 

 

 

 

 

(2,068

)

 

 

 

 

 

 

 

 

(2,068

)

 

 

 

 

 

(2,068

)

Stock-based compensation

 

 

1,911

 

 

 

 

 

 

 

 

 

 

 

 

19

 

 

 

 

 

 

 

 

 

19

 

 

 

 

 

 

19

 

Amortization of stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

477

 

 

 

 

 

 

 

 

 

477

 

 

 

 

 

 

477

 

Preferred stock redemption

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,399

)

 

 

 

 

 

242

 

 

 

(2,157

)

 

 

 

 

 

(2,157

)

Contributions from non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

180

 

 

 

180

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,136

 

 

 

5,136

 

 

 

(212

)

 

 

4,924

 

Distributions and accrual of cumulative preferred stock dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,822

)

 

 

(4,822

)

 

 

 

 

 

(4,822

)

Amortization of terminated derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

397

 

 

 

 

 

 

397

 

 

 

 

 

 

397

 

Balance, March 31, 2024

 

 

7,685,300

 

 

$

8

 

 

$

5

 

 

$

5

 

 

$

1,165,999

 

 

$

(4,404

)

 

$

(728,835

)

 

$

432,778

 

 

$

10,387

 

 

$

443,165

 

 

The accompanying notes are an integral part of these statements

(Back to Index)

7


ACRES COMMERCIAL REALTY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - (Continued)

(in thousands, except share and per share data)

(unaudited)

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Series C Preferred Stock

 

 

Series D Preferred Stock

 

 

Additional Paid-In Capital

 

 

Accumulated Other Comprehensive Loss

 

 

Retained Earnings (Distributions in Excess of Earnings)

 

 

Total Stockholders’ Equity

 

 

Non-Controlling Interest

 

 

Total Equity

 

Balance, December 31, 2022

 

 

8,708,100

 

 

$

9

 

 

$

5

 

 

$

5

 

 

$

1,174,202

 

 

$

(6,394

)

 

$

(732,359

)

 

$

435,468

 

 

$

5,846

 

 

$

441,314

 

Purchase and retirement of common stock

 

 

(79,744

)

 

 

 

 

 

 

 

 

 

 

 

(756

)

 

 

 

 

 

 

 

 

(756

)

 

 

 

 

 

(756

)

Stock-based compensation

 

 

17,780

 

 

 

 

 

 

 

 

 

 

 

 

170

 

 

 

 

 

 

 

 

 

170

 

 

 

 

 

 

170

 

Amortization of stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

894

 

 

 

 

 

 

 

 

 

894

 

 

 

 

 

 

894

 

Contributions from non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,332

 

 

 

2,332

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,439

 

 

 

2,439

 

 

 

(146

)

 

 

2,293

 

Distributions and accrual of cumulative preferred stock dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,855

)

 

 

(4,855

)

 

 

 

 

 

(4,855

)

Amortization of terminated derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

393

 

 

 

 

 

 

393

 

 

 

 

 

 

393

 

Balance, March 31, 2023

 

 

8,646,136

 

 

$

9

 

 

$

5

 

 

$

5

 

 

$

1,174,510

 

 

$

(6,001

)

 

$

(734,775

)

 

$

433,753

 

 

$

8,032

 

 

$

441,785

 

 

The accompanying notes are an integral part of these statements

(Back to Index)

8


ACRES COMMERCIAL REALTY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

For the Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

4,924

 

 

$

2,293

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Provision for credit losses, net

 

 

4,896

 

 

 

5,096

 

Depreciation, amortization and accretion

 

 

1,563

 

 

 

1,371

 

Amortization of stock-based compensation

 

 

477

 

 

 

894

 

Gain on conversion of real estate

 

 

(5,835

)

 

 

 

Gain on sale of real estate

 

 

 

 

 

(745

)

Changes in operating assets and liabilities

 

 

(2,690

)

 

 

198

 

Net cash provided by operating activities

 

 

3,335

 

 

 

9,107

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Origination and purchase of loans

 

 

(11,406

)

 

 

(29,559

)

Principal payments received on loans

 

 

80,770

 

 

 

94,064

 

Investments in real estate

 

 

(14,543

)

 

 

(8,918

)

Proceeds from sale of real estate

 

 

 

 

 

14,309

 

Principal payments received on loan - related party

 

 

50

 

 

 

75

 

Net cash provided by investing activities

 

 

54,871

 

 

 

69,971

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Repurchase of common stock

 

 

(2,068

)

 

 

(756

)

Repurchase of preferred stock

 

 

(2,157

)

 

 

 

Proceeds from borrowings:

 

 

 

 

 

 

Warehouse financing facilities and repurchase agreements

 

 

19,260

 

 

 

12,095

 

Mortgages payable

 

 

9,130

 

 

 

 

Payments on borrowings:

 

 

 

 

 

 

Securitizations

 

 

(58,556

)

 

 

 

Senior secured financing facility

 

 

 

 

 

(38,213

)

Warehouse financing facilities and repurchase agreements

 

 

(22,391

)

 

 

(29,450

)

Payment of debt issuance costs

 

 

 

 

 

(3,787

)

Proceeds received from non-controlling interests

 

 

180

 

 

 

2,332

 

Distributions paid on preferred stock

 

 

(4,855

)

 

 

(4,855

)

Net cash used in financing activities

 

 

(61,457

)

 

 

(62,634

)

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

 

 

(3,251

)

 

 

16,444

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD

 

 

91,886

 

 

 

104,810

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

 

$

88,635

 

 

$

121,254

 

 

 

 

The accompanying notes are an integral part of these statements

(Back to Index)

9


(Back to Index)

ACRES COMMERCIAL REALTY CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2024

(unaudited)

 

NOTE 1 - ORGANIZATION

ACRES Commercial Realty Corp., a Maryland corporation, along with its subsidiaries (collectively, the “Company”), is a real estate investment trust (“REIT”) that is primarily focused on originating, holding and managing commercial real estate (“CRE”) mortgage loans and equity investments in commercial real estate properties through direct ownership and joint ventures. The Company’s manager is ACRES Capital, LLC (the “Manager”), a subsidiary of ACRES Capital Corp. (collectively, “ACRES”), a private commercial real estate lender exclusively dedicated to nationwide middle market CRE lending with a focus on multifamily, student housing, hospitality, office and industrial property in top United States (“U.S.”) markets.

The Company has qualified, and expects to qualify in the current fiscal year, as a REIT.

The Company conducts its operations through the use of subsidiaries that it consolidates into its financial statements. The Company’s core assets are consolidated through its investment in ACRES Realty Funding, Inc. (“ACRES RF”), a wholly-owned subsidiary that holds CRE loans, investments in commercial real estate properties and investments in CRE securitizations, which are consolidated as VIEs as discussed in Note 3.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”). The consolidated financial statements include the accounts of the Company, majority-owned or controlled subsidiaries and VIEs for which the Company is considered the primary beneficiary. All inter-company transactions and balances have been eliminated in consolidation.

Basis of Presentation

All adjustments necessary to fairly present the Company’s financial position, results of operations and cash flows have been made.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and within the period of financial results. Actual results could differ from those estimates. Estimates affecting the accompanying consolidated financial statements include, but are not limited to, the net realizable and fair values of the Company’s investments and derivatives, the estimated useful lives used to calculate depreciation, the expected lives over which to amortize premiums and accrete discounts, reversals of or provisions for expected credit losses and the disclosure of contingent liabilities.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. At March 31, 2024 and December 31, 2023, $82.0 million and $81.1 million, respectively, of the reported cash balances exceeded the Federal Deposit Insurance Corporation and Securities Investor Protection Corporation deposit insurance limits of $250,000 per respective depository or brokerage institution. However, all of the Company’s cash deposits are held at multiple, established financial institutions, in multiple accounts associated with its parent and respective consolidated subsidiaries, to minimize credit risk exposure. The Company has not experienced, and does not expect, any losses on its cash and cash equivalents.

Restricted cash includes required account balance minimums primarily for the Company’s CRE debt securitizations as well as cash held in the syndicated corporate loan collateralized debt obligations (“CDOs”).


(Back to Index)

 

ACRES COMMERCIAL REALTY CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

MARCH 31, 2024

(unaudited)

 

The following table provides a reconciliation of cash, cash equivalents and restricted cash on the consolidated balance sheets to the total amount shown on the consolidated statements of cash flows (in thousands):

 

 

 

March 31,

 

 

 

2024

 

 

2023

 

Cash and cash equivalents