ACRES reported net income of $4.1 million in Q1 2026, reversing a loss in the same period last year. Revenue reached $17.8 million, with adjusted earnings of $0.02 per share after accounting for non-recurring costs and stock option expenses.

The company agreed to acquire its external manager, ACRES Capital, in an all-stock transaction issuing 7.5 million shares at fully diluted book value. This transaction will transition the REIT from an externally managed to an internally managed structure and terminate the existing management agreement.

The merger will expand assets under management from $2.2 billion to $4.7 billion, introduce recurring third-party fee income and align management equity ownership with shareholders. The deal is expected to close in the third quarter of 2026, subject to stockholder approval of the share issuance.