- GAAP Net Earnings of $0.07 per share and FFO Before Special
Items of $0.32 per share
- Core Same-Property NOI Growth of 5.9%
- GAAP and Cash New Leasing Spreads of 73% and 46%,
respectively
- Core Signed Not Open Pipeline Increased to $10 million
(Approximately 7% of ABR)
- Completed Approximately $150 million of Accretive Core and
Investment Management Acquisitions and Increased its Pipeline to
$425 million
- Fully-Funded its Completed Acquisitions and
Pipeline with Common Equity Proceeds of Approximately $320
million
- Reduced its Pro-Rata Net Debt-to-EBITDA (Inclusive of
Investment Management Share) to 5.6x
Acadia Realty Trust (NYSE: AKR) (“Acadia” or the “Company”)
today reported operating results for the quarter ended September
30, 2024. All per share amounts are on a fully-diluted basis, where
applicable. Acadia owns and operates a high-quality real estate
portfolio of street and open-air retail properties in the nation's
most dynamic retail corridors ("Core" or "Core Portfolio"), along
with an investment management platform that targets opportunistic
and value-add investments through its institutional co-investment
vehicles ("Investment Management").
Kenneth F. Bernstein, President and CEO
of Acadia, commented:
“Our third-quarter results highlight the
ongoing internal growth from our Core Portfolio now coupled with
the recent acceleration of our accretive acquisition initiatives.
We achieved record acquisition and leasing volumes during the
quarter. With approximately $575 million of accretive Core and
Investment Management acquisitions completed or in advanced stages
of negotiation, along with achieving a record setting volume of $7
million in new Core leases, we have increased confidence in our
earnings growth over the next several years. We continue to see
compelling investment opportunities and remain focused on
acquisitions in our key street markets that provide us with
immediate accretion to our earnings, net asset value creation, and
complement the continuation of our long-term internal growth. We
believe that our highly differentiated platform is well-positioned
to deliver meaningful value and provides us with sustainable growth
for our stakeholders."
FINANCIAL RESULTS
A complete reconciliation, in dollars and per share amounts, of
(i) net income attributable to Acadia to FFO (as defined by NAREIT
and Before Special Items) attributable to common shareholders and
common OP Unit holders and (ii) operating income to NOI is included
in the financial tables of this release. The amounts discussed
below are net of noncontrolling interests and all per share amounts
are on a fully-diluted basis.
Financial Results
2024
2023
3Q
3Q
Net earnings per share attributable to
Acadia
$0.07
($0.02)
Depreciation of real estate and
amortization of leasing costs (net of noncontrolling interest
share)
0.23
0.27
Gain on disposition of properties (net of
noncontrolling interests' share)
(0.02)
—
Noncontrolling interest in Operating
Partnership
—
0.01
NAREIT Funds From Operations per share
attributable to Common Shareholders and Common OP Unit
holders
$0.28
$0.26
Net unrealized holding loss (gain) 1
0.02
(0.01)
Funds From Operations Before Special
Items and Realized Gains and Promotes per share attributable to
Common Shareholders and Common OP Unit holders
$0.30
$0.25
Realized gains and promotes1
0.02
0.02
Funds From Operations Before Special
Items per share attributable to Common Shareholders and Common OP
Unit holders
$0.32
$0.27
________
1.
It is the Company's policy to exclude
unrealized gains and losses from FFO Before Special items and to
include realized gains related to the Company's investment in
Albertsons. The Company realized investment gains of $2.9 million
on 150,000 shares for the quarter ended September 30, 2024 and
investment gains of $2.4 million for the quarter ended September
30, 2023. Refer to the "Notes to Financial Highlights" page 14 of
this document.
Net
Income
- Net income for the quarter ended September 30, 2024, was $8.1
million, or $0.07 per share.
- This compares with net loss of $1.7 million, or $0.02 per share
for the quarter ended September 30, 2023.
NAREIT
FFO
- NAREIT Funds From Operations ("NAREIT FFO") for the quarter
ended September 30, 2024 was $33.0 million, or $0.28 per
share.
- This compares with NAREIT FFO of $26.8 million, or $0.26 per
share, for the quarter ended September 30, 2023.
FFO Before
Special Items
- Funds From Operations ("FFO") Before Special Items for the
quarter ended September 30, 2024 was $37.1 million, or $0.32 per
share, which includes $2.9 million, or $0.02 per share, of realized
investment gains (150,000 shares of Albertsons' stock sold at an
average price of $19.52 per share).
- This compares with FFO Before Special Items of $27.6 million,
or $0.27 per share for the quarter ended September 30, 2023, which
includes $2.4 million, or $0.02 per share, of realized investment
gains from the sale of Albertsons' stock.
CORE PORTFOLIO PERFORMANCE
Same-Property
NOI
- Same-Property Net Operating Income ("NOI") growth, excluding
redevelopments, increased 5.9% for the third quarter, driven by the
street portfolio.
Leasing and
Occupancy Update
- For the quarter ended September 30, 2024, conforming GAAP and
cash leasing spreads on new leases were 73% and 46%, respectively,
primarily driven by street leases.
- As of September 30, 2024, primarily driven by a new acquisition
with acquired vacancy, the Core Portfolio occupancy percentages
remained constant at 94.7% leased and 91.7% occupied compared to
94.8% leased and 91.8% occupied as of June 30, 2024.
- Core Signed Not Open ("SNO") pipeline (excluding
redevelopments) increased to approximately $10.0 million of
annualized base rent ("ABR") at September 30, 2024, representing
approximately 7% of in-place rents. This is an increase in excess
of 20% from the approximately $8.1 million of SNO as of June 30,
2024.
- During the third quarter of 2024, the Company signed pro-rata
ABR of $7.0 million in new leases for the Core portfolio. This
included a new lease with the European fashion brand, Mango, for
the entirety of its building at 664 North Michigan Avenue in
Chicago, along with leasing the entirety of 50-54 East Walton
Street in Chicago's Gold Coast to a well-known New York City-based
fashion and footwear lifestyle brand.
- Approximately $4.6 million of the $7.0 million above represents
incremental ABR. This consists of approximately $3.0 million of new
leases signed on vacant space and $4.0 million of new leases on
currently occupied space with an increase of approximately $1.6
million in excess of current rents.
ACQUISITION ACTIVITY
As further described below, during the quarter and to date, the
Company increased its Core and Investment Management acquisition
activities to approximately $575 million, consisting of $150
million of completed acquisitions ($120 million and $30 million of
Core and Investment Management acquisitions, respectively) and a
pipeline of $425 million of acquisitions that are subject to
agreements or in advanced stages of negotiation ($150 million and
$275 million of Core and Investment Management acquisitions,
respectively).
Core Portfolio
Acquisitions
Completed: Approximately $120 million | Pipeline:
Approximately $150 million
- Bleecker Street Portfolio, Manhattan, New York. As
previously announced, during the third quarter, the Company
acquired a four-building retail portfolio along the Bleecker Street
retail corridor in the West Village of Manhattan for $20.3 million.
The portfolio offers the potential for both lease up and accretive
mark-to-market re-leasing opportunities. This acquisition is
complementary to its existing Street retail corridors and aligns
with the Company's strategy of targeting high-quality core assets
in markets with high barriers to entry.
- Williamsburg, Brooklyn, New York. In October 2024, the
Company completed the acquisitions of 123-129 N. 6th Street for
$35.0 million and 109 N. 6th Street for $18.3 million in
Williamsburg, Brooklyn. This collection of retail assets is located
in one of New York City's most dynamic and in-demand retail
corridors and offers below-market rents and lease-up opportunities.
These acquisitions expand the Company's existing Williamsburg
portfolio.
- SoHo Manhattan, New York. In October 2024, the Company
closed on 92-94 Greene Street for $43.4 million which is adjacent
to its existing property located on the corner of Spring and Green
Street in SoHo. This acquisition expands the Company's SoHo
portfolio to 12 buildings, eight of which are on Greene Street. The
property provides an opportunity for near-term opportunity for
accretive re-leasing.
- Core Portfolio Pipeline. The Company is also under
agreements or in advanced stages of negotiations relating to
potential investments with an aggregate purchase price of
approximately $150.0 million to acquire Street retail assets within
its existing markets, including the Georgetown corridor of
Washington D.C., SoHo Manhattan, New York, and Henderson Avenue in
Dallas, Texas.
Investment Management
Acquisitions
Completed: Approximately $30 million | Pipeline:
Approximately $275 million
- The Walk at Highwoods Preserve, Tampa, Florida. As
previously announced, in July 2024, the Company completed the
acquisition of a 141,000 square foot open-air shopping center
anchored by Home Goods and Michaels. In October 2024, the Company
entered into a joint venture with funds managed by the Private Real
Estate Group of Cohen & Steers to own the property. The Company
will be entitled to an asset management fee and an opportunity to
earn a promote upon the ultimate disposition of the investment.
Additionally, the Company will manage the day-to-day operations of
the investment entitling it to earn management, leasing, and
construction fees.
- Investment Management Pipeline. The Company is in
advanced stages of negotiation involving a potential investment
with an aggregate purchase price of approximately $275.0 million of
gross asset value (including the Company's share). The Company
anticipates acquiring a minority interest along with a leading
global alternative asset management firm. Upon closing, the Company
will be entitled to an asset management fee and an opportunity to
earn a promote upon the ultimate disposition of the investment.
Additionally, the Company will manage day-to-day operations
entitling it to earn management, leasing, and construction
fees.
The pending Core and Investment Management transactions
described within the Pipeline above are subject to final agreement
between the parties, customary closing conditions and market
uncertainty. Thus, no assurances can be given that the Company will
successfully close on any of these transactions on the anticipated
timeline or at all.
DISPOSITION ACTIVITY
Investment Management
Disposition
- Frederick Crossing, Frederick, Maryland. In the third
quarter, the Company, in partnership with DLC Management Corp.,
completed the sale of Frederick Crossing, a Fund V asset, for $47.2
million, and repaid the related $23.2 million mortgage loan. This
sale generated a 27% IRR, 2.1x multiple on the Fund's equity
investment and a $11.6 million gain, of which $2.3 million was the
Company's share.
PORTFOLIO EXPANSION
Core Portfolio
- Henderson Avenue Corridor Expansion. In October 2024,
the Company, in partnership with Ignite-Rebees, commenced
construction on a major expansion to its existing 14 building
portfolio on Henderson Avenue in Dallas, Texas. Upon completion,
the project will add up to an additional 10 buildings and
approximately 160,000 square feet to its existing 121,385 square
feet retail portfolio, which was acquired by the Company in 2022.
The expansion will accelerate the transformation of this corridor
into a vibrant, walkable, street retail destination, positioning
the asset to be one of the most exciting urban retail hubs in the
Dallas-Fort Worth Metroplex. The project is scheduled for
completion in late 2026 and stabilization in 2027.
BALANCE SHEET
- Equity Activity: Raised net proceeds during the quarter
and through October 28, 2024 of $318.8 million from the sale of
14.3 million shares of its common stock consisting of $187.0
million (8.5 million shares) through the Company's at-the-market
issuance program and $131.8 million (5.75 million shares, inclusive
of the underwriters exercised option to purchase 750,000 additional
shares) through an underwritten public offering in connection with
forward sales agreements. Subsequent to the quarter end, the
Company physically settled the forward sales agreements in its
entirety to fund its acquisition activities.
- Expansion of Unsecured Credit Facility and Repayment of $175
Million Term Loan: In September 2024, the Company increased the
borrowing capacity of its credit facility from $350.0 million to
$525.0 million along with increasing the facility's accordion
feature from $900.0 million to $1.1 billion. Additionally, the
Company repaid, in full, its $175.0 million term loan.
- Debt-to-EBITDA Metrics: Pro-rata Core and Investment
Management Net Debt-to-EBITDA improved to 5.6x at September 30,
2024 as compared to 6.3x and 6.7x at June 30, 2024, and December
31, 2023, respectively. Refer to the third quarter 2024
Supplemental Information package for reconciliations and details on
financial ratios.
- $100 Million of Private Unsecured Notes: In August 2024,
the Company closed on its previously reported inaugural private
placement of $100 million of senior unsecured notes comprised of an
$80 million and $20 million note with a five- and three- year term,
respectively. The five-year and three-year notes bear interest at
fixed annual rates of 5.94% and 5.86%, respectively, based on
credit spreads of 150 and 125 basis points over the five- and
three-year U.S. Treasury bonds as of the date of pricing (May 21,
2024), respectively.
- No Significant Core Debt Maturities until 2028: 3.4%,
0.3%, 6.9% and 5.6% of Core debt maturing in 2024, 2025, 2026, and
2027, respectively.
CONFERENCE CALL
Management will conduct a conference call on Monday, October 28,
2024 at 11:00 AM ET to review the Company’s earnings and operating
results. Participant registration and webcast information is listed
below.
Live Conference Call:
Date:
Monday, October 28, 2024
Time:
11:00 AM ET
Participant call:
Third Quarter 2024 Dial-In
Participant webcast:
Third Quarter 2024 Webcast
Webcast Listen-only and Replay:
www.acadiarealty.com/investors under
Investors, Presentations & Events
The Company uses, and intends to use, the Investors page of its
website, which can be found at
https://www.acadiarealty.com/investors, as a means of disclosing
material nonpublic information and of complying with its disclosure
obligations under Regulation FD, including, without limitation,
through the posting of investor presentations and certain portfolio
updates. Additionally, the Company also uses its LinkedIn profile
to communicate with its investors and the public. Accordingly,
investors are encouraged to monitor the Investors page of the
Company's website and its LinkedIn profile, in addition to
following the Company’s press releases, SEC filings, public
conference calls, presentations and webcasts.
About Acadia Realty Trust
Acadia Realty Trust is an equity real estate investment trust
focused on delivering long-term, profitable growth. Acadia owns and
operates a high-quality core real estate portfolio ("Core" or "Core
Portfolio") of street and open-air retail properties in the
nation's most dynamic retail corridors, along with an investment
management platform that targets opportunistic and value-add
investments through its institutional co-investment vehicles. For
further information, please visit www.acadiarealty.com.
Safe Harbor Statement
Certain statements in this press release may contain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements, which are based on certain assumptions and describe the
Company's future plans, strategies and expectations are generally
identifiable by the use of words, such as “may,” “will,” “should,”
“expect,” “anticipate,” “estimate,” “believe,” “intend” or
“project,” or the negative thereof, or other variations thereon or
comparable terminology. Forward-looking statements involve known
and unknown risks, uncertainties and other factors that could cause
the Company's actual results and financial performance to be
materially different from future results and financial performance
expressed or implied by such forward-looking statements, including,
but not limited to: (i) macroeconomic conditions, including due to
geopolitical conditions and instability, which may lead to a
disruption of or lack of access to the capital markets, disruptions
and instability in the banking and financial services industries
and rising inflation; (ii) the Company’s success in implementing
its business strategy and its ability to identify, underwrite,
finance, consummate and integrate diversifying acquisitions and
investments; (including the potential acquisitions discussed in
this press release); (iii) changes in general economic conditions
or economic conditions in the markets in which the Company may,
from time to time, compete, and their effect on the Company’s
revenues, earnings and funding sources; (iv) increases in the
Company’s borrowing costs as a result of rising inflation, changes
in interest rates and other factors; (v) the Company’s ability to
pay down, refinance, restructure or extend its indebtedness as it
becomes due; (vi) the Company’s investments in joint ventures and
unconsolidated entities, including its lack of sole decision-making
authority and its reliance on its joint venture partners’ financial
condition; (vii) the Company’s ability to obtain the financial
results expected from its development and redevelopment projects;
(viii) the ability and willingness of the Company's tenants to
renew their leases with the Company upon expiration, the Company’s
ability to re-lease its properties on the same or better terms in
the event of nonrenewal or in the event the Company exercises its
right to replace an existing tenant, and obligations the Company
may incur in connection with the replacement of an existing tenant;
(ix) the Company’s potential liability for environmental matters;
(x) damage to the Company’s properties from catastrophic weather
and other natural events, and the physical effects of climate
change; (xi) the economic, political and social impact of, and
uncertainty surrounding, any public health crisis, such as the
COVID-19 Pandemic, which adversely affected the Company and its
tenants’ business, financial condition, results of operations and
liquidity; (xii) uninsured losses; (xiii) the Company’s ability and
willingness to maintain its qualification as a REIT in light of
economic, market, legal, tax and other considerations; (xiv)
information technology security breaches, including increased
cybersecurity risks relating to the use of remote technology; (xv)
the loss of key executives; and (xvi) the accuracy of the Company’s
methodologies and estimates regarding environmental, social and
governance (“ESG”) metrics, goals and targets, tenant willingness
and ability to collaborate towards reporting ESG metrics and
meeting ESG goals and targets, and the impact of governmental
regulation on its ESG efforts.
The factors described above are not exhaustive and additional
factors could adversely affect the Company’s future results and
financial performance, including the risk factors discussed under
the section captioned “Risk Factors” in the Company’s most recent
Annual Report on Form 10-K and other periodic or current reports
the Company files with the SEC. Any forward-looking statements in
this press release speak only as of the date hereof. The Company
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
to reflect any changes in the Company’s expectations with regard
thereto or changes in the events, conditions or circumstances on
which such forward-looking statements are based.
ACADIA REALTY TRUST AND
SUBSIDIARIES
Condensed Consolidated
Statements of Operations (1)
(Unaudited, Dollars and Common
Shares and Units in thousands, except per share amounts)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Revenues
Rental income
$
86,288
$
79,961
$
257,951
$
248,839
Other
1,457
1,431
8,404
4,340
Total revenues
87,745
81,392
266,355
253,179
Expenses
Depreciation and amortization
34,500
33,726
103,721
100,955
General and administrative
10,215
10,309
30,162
30,898
Real estate taxes
11,187
11,726
33,514
34,586
Property operating
14,351
15,254
49,228
44,597
Impairment charges
—
3,686
—
3,686
Total expenses
70,253
74,701
216,625
214,722
Loss on disposition of properties
—
—
(441
)
—
Operating income
17,492
6,691
49,289
38,457
Equity in earnings (losses) of
unconsolidated affiliates
11,784
(4,865
)
15,952
(6,273
)
Interest income
7,859
5,087
18,510
14,875
Realized and unrealized holding (losses)
gains on investments and other
(1,503
)
1,664
(5,918
)
30,236
Interest expense
(23,363
)
(24,885
)
(70,653
)
(68,561
)
Income (loss) from continuing operations
before income taxes
12,269
(16,308
)
7,180
8,734
Income tax (provision) benefit
(15
)
40
(201
)
(248
)
Net income (loss)
12,254
(16,268
)
6,979
8,486
Net loss attributable to redeemable
noncontrolling interests
1,672
2,495
6,518
5,661
Net (income) loss attributable to
noncontrolling interests
(5,512
)
12,347
(371
)
7,063
Net income (loss) attributable to Acadia
shareholders
$
8,414
$
(1,426
)
$
13,126
$
21,210
Less: earnings attributable to unvested
participating securities
(306
)
(244
)
(883
)
(734
)
Income from continuing operations net of
income attributable to participating securities for diluted
earnings per share
$
8,108
$
(1,670
)
$
12,243
$
20,476
Weighted average shares for basic earnings
per share
108,351
95,320
104,704
95,257
Weighted average shares for diluted
earnings per share
108,351
95,320
104,704
95,257
Net earnings per share - basic
(2)
$
0.07
$
(0.02
)
$
0.12
$
0.21
Net earnings per share - diluted
(2)
$
0.07
$
(0.02
)
$
0.12
$
0.21
ACADIA REALTY TRUST AND
SUBSIDIARIES
Reconciliation of Consolidated
Net Income to Funds from Operations (1,3)
(Unaudited, Dollars and Common
Shares and Units in thousands, except per share amounts)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Net income (loss) attributable to
Acadia
$
8,414
$
(1,426
)
$
13,126
$
21,210
Depreciation of real estate and
amortization of leasing costs (net of noncontrolling interests'
share)
26,407
27,351
79,785
82,043
Impairment charges (net of noncontrolling
interests' share)
—
852
—
852
Gain on disposition of properties (net of
noncontrolling interests' share)
(2,324
)
—
(1,481
)
—
Income attributable to Common OP Unit
holders
398
(55
)
704
1,313
Funds from operations attributable to
Common Shareholders and Common OP Unit holders - Basic and
Diluted
67
123
274
369
Funds from operations attributable to
Common Shareholders and Common OP Unit holders - Diluted
$
32,962
$
26,845
$
92,408
$
105,787
Adjustments for Special Items:
Unrealized holding loss (gain) (net of
noncontrolling interest share) (4)
1,242
(1,631
)
5,565
(3,410
)
Realized gain
2,923
2,371
10,503
2,371
Funds from operations before Special
Items attributable to Common Shareholders and Common OP Unit
holders
$
37,127
$
27,585
$
108,476
$
104,748
Funds From Operations per Share -
Diluted
Basic weighted-average shares outstanding,
GAAP earnings
108,351
95,320
104,704
95,257
Weighted-average OP Units outstanding
7,223
6,962
7,340
6,980
Assumed conversion of Preferred OP Units
to common shares
256
464
256
464
Assumed conversion of LTIP units and
restricted share units to common shares
1,174
—
964
—
Weighted average number of Common Shares
and Common OP Units
117,004
102,746
113,264
102,701
Diluted Funds from operations, per Common
Share and Common OP Unit
$
0.28
$
0.26
$
0.82
$
1.03
Diluted Funds from operations before
Special Items, per Common Share and Common OP Unit
$
0.32
$
0.27
$
0.96
$
1.02
ACADIA REALTY TRUST AND
SUBSIDIARIES
Reconciliation of Consolidated
Operating Income to Net Property Operating Income (“NOI”)
(1)
(Unaudited, Dollars in
thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Consolidated operating income
$
17,492
$
6,691
$
49,289
$
38,457
Add back:
General and administrative
10,215
10,309
30,162
30,898
Depreciation and amortization
34,500
33,726
103,721
100,955
Impairment charges
—
3,686
—
3,686
Loss on disposition of properties
—
—
441
—
Less:
Above/below market rent, straight-line
rent and other adjustments
(5,498
)
(3,336
)
(12,975
)
(18,666
)
Consolidated NOI
56,709
51,076
170,638
155,330
Redeemable noncontrolling interest in
consolidated NOI
(1,711
)
(861
)
(4,133
)
(3,260
)
Noncontrolling interest in consolidated
NOI
(17,060
)
(14,927
)
(52,314
)
(43,132
)
Less: Operating Partnership's interest in
Investment Management NOI included above
(6,940
)
(4,656
)
(18,413
)
(14,458
)
Add: Operating Partnership's share of
unconsolidated joint ventures NOI (5)
2,291
3,163
8,504
11,263
Core Portfolio NOI
$
33,289
$
33,795
$
104,282
$
105,743
Reconciliation of
Same-Property NOI
(Unaudited, Dollars in
thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Core Portfolio NOI
$
33,289
$
33,795
$
104,282
$
105,743
Less properties excluded from
Same-Property NOI
(1,516
)
(3,780
)
(8,340
)
(15,014
)
Same-Property NOI
$
31,773
$
30,015
$
95,942
$
90,729
Percent change from prior year period
5.9
%
5.7
%
Components of Same-Property NOI:
Same-Property Revenues
$
45,101
$
43,228
$
136,891
$
130,286
Same-Property Operating Expenses
(13,328
)
(13,213
)
(40,949
)
(39,557
)
Same-Property NOI
$
31,773
$
30,015
$
95,942
$
90,729
ACADIA REALTY TRUST AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets (1)
(Unaudited, Dollars in thousands,
except shares)
As of
September 30, 2024
December 31, 2023
ASSETS
Investments in real estate, at cost
Buildings and improvements
$
3,121,177
$
3,128,650
Tenant improvements
291,401
257,955
Land
854,487
872,228
Construction in progress
21,212
23,250
Right-of-use assets - finance leases
61,366
58,637
4,349,643
4,340,720
Less: Accumulated depreciation and
amortization
(899,068
)
(823,439
)
Operating real estate, net
3,450,575
3,517,281
Real estate under development
109,778
94,799
Net investments in real estate
3,560,353
3,612,080
Notes receivable, net ($1,835 and $1,279
of allowance for credit losses as of September 30, 2024 and
December 31, 2023, respectively)
126,576
124,949
Investments in and advances to
unconsolidated affiliates
187,363
197,240
Other assets, net
196,920
208,460
Right-of-use assets - operating leases,
net
26,820
29,286
Cash and cash equivalents
46,207
17,481
Restricted cash
23,088
7,813
Marketable securities
17,503
33,284
Rents receivable, net
55,615
49,504
Assets of properties held for sale
35,878
11,057
Total assets
$
4,276,323
$
4,291,154
LIABILITIES, REDEEMABLE NONCONTROLLING
INTERESTS AND EQUITY
Liabilities:
Mortgage and other notes payable, net
$
954,371
$
930,127
Unsecured notes payable, net
569,242
726,727
Unsecured line of credit
56,000
213,287
Accounts payable and other liabilities
221,506
229,375
Lease liability - operating leases
29,013
31,580
Dividends and distributions payable
22,995
18,520
Distributions in excess of income from,
and investments in, unconsolidated affiliates
7,797
7,982
Liabilities of properties held for
sale
5,435
—
Total liabilities
1,866,359
2,157,598
Commitments and contingencies
Redeemable noncontrolling interests
35,037
50,339
Equity:
Common shares, $0.001 par value per share,
authorized 200,000,000 shares, issued and outstanding 113,902,348
and 95,361,676 shares, respectively
114
95
Additional paid-in capital
2,304,534
1,953,521
Accumulated other comprehensive income
17,251
32,442
Distributions in excess of accumulated
earnings
(395,172
)
(349,141
)
Total Acadia shareholders’ equity
1,926,727
1,636,917
Noncontrolling interests
448,200
446,300
Total equity
2,374,927
2,083,217
Total liabilities, redeemable
noncontrolling interests, and equity
$
4,276,323
$
4,291,154
ACADIA REALTY TRUST AND SUBSIDIARIES
Notes to Financial Highlights:
- For additional information and analysis concerning the
Company’s balance sheet and results of operations, reference is
made to the Company’s quarterly supplemental disclosures for the
relevant periods furnished on the Company's Current Report on Form
8-K, which is available on the SEC's website at www.sec.gov and on
the Company’s website at www.acadiarealty.com.
- Diluted earnings per share reflects the potential dilution that
could occur if securities or other contracts to issue common shares
of the Company were exercised or converted into common shares. The
effect of the conversion of units of limited partnership interest
(“OP Units”) in Acadia Realty Limited Partnership, the operating
partnership of the Company (the “Operating Partnership”), is not
reflected in the above table; OP Units are exchangeable into common
shares on a one-for-one basis. The income allocable to such OP
units is allocated on the same basis and reflected as
noncontrolling interests in the consolidated financial statements.
As such, the assumed conversion of these OP Units would have no net
impact on the determination of diluted earnings per share.
- The Company considers funds from operations (“FFO”) as defined
by the National Association of Real Estate Investment Trusts
(“NAREIT”) and net property operating income (“NOI”) to be
appropriate supplemental disclosures of operating performance for
an equity REIT due to their widespread acceptance and use within
the REIT and analyst communities. In addition, the Company believes
that given the atypical nature of certain unusual items (as further
described below), “FFO Before Special Items” is also an appropriate
supplemental disclosure of operating performance. FFO, FFO Before
Special Items and NOI are presented to assist investors in
analyzing the performance of the Company. The Company believes they
are helpful as they exclude various items included in net income
(loss) that are not indicative of operating performance, such as
(i) gains (losses) from sales of real estate properties; (ii)
depreciation and amortization and (iii) impairment of depreciable
real estate properties. In addition, NOI excludes interest expense
and FFO Before Special Items excludes certain unusual items (as
further described below). The Company’s method of calculating FFO,
FFO Before Special Items and NOI may be different from methods used
by other REITs and, accordingly, may not be comparable to such
other REITs. Neither FFO nor FFO Before Special Items represent
cash generated from operations as defined by generally accepted
accounting principles (“GAAP”), or are indicative of cash available
to fund all cash needs, including distributions. Such measures
should not be considered as an alternative to net income (loss) for
the purpose of evaluating the Company’s performance or to cash
flows as a measure of liquidity.
- Consistent with the NAREIT definition, the Company defines FFO
as net income (computed in accordance with GAAP) excluding:
- gains (losses) from sales of real estate properties;
- depreciation and amortization;
- impairment of real estate properties;
- gains and losses from change in control; and
- after adjustments for unconsolidated partnerships and joint
ventures.
- Also consistent with NAREIT’s definition of FFO, the Company
has elected to include: the impact of the unrealized holding gains
(losses) incidental to its main business, including those related
to its RCP investments such as Albertsons in FFO.
- FFO Before Special Items begins with the NAREIT definition of
FFO and adjusts FFO (or as an adjustment to the numerator within
its earnings per share calculations) to take into account FFO
without regard to certain unusual items including:
- charges, income and gains that management believes are not
comparable and indicative of the results of the Company’s operating
real estate portfolio;
- the impact of the unrealized holding gains (losses) incidental
to its main business, including those related to its Retailer
Controlled Property Venture ("RCP") investments such as Albertsons;
and
- any realized income or gains from the Company’s investment in
Albertsons.
- The Company defines Special Items to include (i) unrealized
holding losses or gains (net of noncontrolling interest share) on
investments and (ii) other costs that do not occur in the ordinary
course of our underwriting and investing business.
- The pro-rata share of NOI is based upon the Operating
Partnership’s stated ownership percentages in each venture or
Investment Management’s operating agreement and does not include
the Operating Partnership's share of NOI from unconsolidated
partnerships and joint ventures within Investment Management.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241028806586/en/
Sandra Liang (914) 288-3356
Acadia Realty (NYSE:AKR)
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