ACRES Commercial Realty

Loans are predominantly floating‑rate at SOFR plus a spread (Q1 2026 WA spread 3.29%) with floors, which partially shields NII but does not constitute pricing power because competitors can match spreads quickly. WA spreads moved from 3.63% (Q3 2025) to 3.35% (Q4 2025) to 3.29% (Q1 2026), indicating tight competitive dynamics.

ACR cannot materially raise loan coupons without risking share loss, especially as credit normalizes. Preferred dividends are fixed; there is no common dividend.