Acadia Realty Trust (NYSE: AKR) (“Acadia” or the “Company”)
today reported operating results for the quarter and year-to-date
period ended June 30, 2022. For the quarter ended June 30, 2022,
net loss per share was $0.00 and for the six months ended June 30,
2022, net earnings per share was $0.17. All per share amounts are
on a fully-diluted basis, where applicable. Acadia operates dual
platforms, comprised of a high-quality core real estate portfolio
(“Core Portfolio”), through which the Company owns and operates
retail assets in the nation’s most dynamic corridors, and a series
of discretionary, institutional funds (“Funds”) that target
opportunistic and value-add investments.
Please refer to the tables and notes accompanying this press
release for further details on operating results and additional
disclosures related to net income (loss), funds from operations
("FFO") as per NAREIT and Before Special Items, and net property
operating income ("NOI").
Second Quarter and Recent
Highlights
- Second Quarter Earnings and Operating Results:
- Driven by internal and external growth, exceeded expectations
with FFO Before Special Items per share of $0.32 and NAREIT FFO per
share of $0.23
- Driven by its Street/Urban, generated a 4.8% and 7.1% increase
in its Core Portfolio same-property NOI, during the second quarter
and year-to-date, respectively
- Updated net earnings per share $0.27 to $0.36 (from $0.25 to
$0.37) and increased 2022 FFO Before Special Items guidance $1.20
to $1.32 (from $1.17 to $1.32)
- Core and Fund Transactional Activity:
- Completed a Core acquisition in Dallas, Texas of approximately
$85 million (as previously announced)
- Refinanced maturing debt and accretively increased its
ownership at City Point, an approximately 550,000 square foot
retail property in Downtown Brooklyn in August
- Profitably completed a Fund IV disposition of approximately $41
million
- Fund V has an investment pipeline of approximately $50
million
- Core Portfolio Leasing:
- Generated GAAP and cash leasing spreads of 15.4% and 4.3%,
respectively, on comparable new and renewal leases
- Maintained leased and occupied rates of 94.1% and 90.5%,
respectively, representing 3.6% of signed but not yet commenced
rents as of June 30, 2022
- Balance Sheet and Liquidity:
- Closed a $175 million five-year unsecured term loan (as
previously announced) and a $75 million seven-year unsecured term
loan in July to repay outstanding amounts under the revolving
credit facility
“We finished another robust quarter evidenced by our operating
results exceeding expectations. With the continuing momentum in
Street retail, our fundamentals remain strong, and we expect this
strength to continue to play out over the next several years,”
stated Kenneth F. Bernstein, President and CEO of Acadia Realty
Trust. "Notwithstanding the significant volatility in the capital
markets, we continue to find ways to create meaningful shareholder
value within our Core Portfolio and Fund Platform, including the
strategic recapitalization of City Point."
CORE PORTFOLIO OPERATING
RESULTS
The Company had a GAAP loss per share of $0.00, NAREIT FFO per
share of $0.23 and FFO Before Special Items per share of $0.32 for
the quarter ended June 30, 2022. Please refer to the Consolidated
Financial Results section below for additional details.
Driven by profitable rent commencements on new leases (including
key Street leases in New York City, Chicago and Washington D.C.)
and improved credit conditions, the Company's same-property NOI,
excluding redevelopments, increased 4.8% for the quarter ended June
30, 2022 and 7.1% for the six months ended June 30, 2022.
For the quarter ended June 30, 2022, the Company's pro-rata
share of credit losses and reserves is as follows (dollars in
millions):
Core Same Store
Core Other
Funds
Total
Per Share
Second Quarter 2022 Credit Losses and
Reserves
Credit Loss and Abatements - Billed Rents
and Recoveries
$1.0
$0.1
$0.1
$1.2
$0.01
Prior Period (Benefit), Net
(1.3)
(1.5)
(0.1)
(2.9)
(0.03)
Straight-Line Rent Reserves
N/A
0.9
—
0.9
0.01
Total
$(0.3)
$(0.5)
$—
$(0.8)
$(0.01)
CORE AND FUND TRANSACTIONAL
ACTIVITY
Core Acquisition (Previously
Announced)
The Company completed the following Core acquisition totaling
approximately $85 million during the second quarter.
Henderson Avenue Portfolio, Dallas, Texas. As previously
announced, in April 2022, the Company completed its first
acquisition in the Knox-Henderson corridor of Dallas, Texas with
its purchase of the Henderson Avenue Portfolio ("Portfolio") for
approximately $85 million, inclusive of transaction costs. The
Portfolio is comprised of 14 operating retail assets, one
residential building and two development and redevelopment sites on
Henderson Avenue. The Portfolio is located in the heart of rapidly
growing East Dallas, and in proximity to the city's most affluent
communities of Highland Park, University Park, Uptown and
Lakewood.
The Portfolio includes a strong line up of digitally-native
retailers such as Warby Parker, Tecovas and Bonobos, and a
collection of some of the most popular restaurants in the city, as
well as a high-performing supermarket, Sprouts Farmers Market.
Significant redevelopment and densification opportunities are
expected to enable the Company to add retail and office space to
this Portfolio and further connect and activate this already
thriving district. The Company intends to partner with a local
development team to oversee the execution of these projects.
City Point Refinancing and
Recapitalization
In August 2022, Acadia refinanced and de-levered City Point, an
approximately 550,000 square foot flagship retail property in
Downtown Brooklyn, New York, held through Fund II. The
approximately $295 million of aggregate debt on the property was
refinanced with a single mortgage loan of approximately $200
million (with approximately $130 million of initial proceeds). The
new loan has a three-year initial term, resulting in annual
interest savings in excess of 150 basis points as compared to the
prior blended interest rate. The Company provided a loan to its
partners of approximately $65 million to fund their share of the
refinancing and recapitalization of City Point.
Additionally, during the second quarter and post-quarter to
date, the Company increased its effective ownership in Fund II from
approximately 28% to approximately 62%, consistent with its
long-standing goal to expand its ownership in City Point. During
the second quarter, in conjunction with a multi-asset secondary
offering by one of its limited partners, the Company was able to
opportunistically acquire an additional 12% interest in City Point,
increasing its ownership to approximately 40% at June 30, 2022. In
August 2022, based upon the pricing used to acquire the 12%
interest, the Company acquired an additional 22% interest in City
Point from other investors, further increasing its interest to
approximately 62%. The purchase price of the combined 33% interest
was approximately $120 million, inclusive of approximately $110
million of assumed obligations. In addition, the remaining partners
have certain redemption rights that could enable the Company to
further increase its ownership.
The Company anticipates the refinancing and recapitalization to
be slightly accretive in 2022 with further accretion in the next
several years as City Point achieves stabilization.
City Point is located at the center of a densifying Downtown
Brooklyn, which has seen approximately 18,000 new residential units
since the area was rezoned. Several new and exciting tenants are
anticipated to open at City Point over the next several months,
most notably Sixpoint Brewery and Primark, who is replacing the
former anchor, Century 21.
Fund Transactional
Activity
Lincoln Place (Fund IV). In May 2022, Fund IV completed
the disposition of its property located in Illinois for
approximately $41 million and repaid the mortgage of $22.7 million.
This sale generated a 14% IRR and 1.8x multiple on the Fund's
equity investment.
Additionally, Fund V has an approximately $50 million
acquisition in its pipeline. No assurance can be given that Fund V
will successfully close on acquisitions in its pipeline, which are
subject to customary conditions and market uncertainty.
CORE PORTFOLIO LEASING
During the second quarter, GAAP and cash leasing spreads were
15.4% and 4.3%, respectively, on 14 conforming new and renewal
leases aggregating approximately 82,000 square feet.
As of June 30, 2022, the Core Portfolio was 90.5% occupied and
94.1% leased, representing 3.6% of signed but not yet commenced
rents. As of March 31, 2022, the Core Portfolio was 90.5% occupied
and 94.1% leased. The leased rate includes space that is leased but
not yet occupied and excludes development and redevelopment
properties.
During the second quarter and post-quarter to date, the Company
continued to execute leases in its Core Portfolio, with Street
leases signed on M Street in Washington D.C., Greenwich Avenue in
Greenwich, CT and in Soho, NY.
BALANCE SHEET AND
LIQUIDITY
As previously announced, in April 2022, the Company closed on a
new $175 million five-year unsecured term loan. Additionally, in
July 2022, the Company closed on a $75 million seven-year unsecured
term loan. The proceeds of these loans were used to repay
outstanding amounts under the revolving credit facility.
As of June 30, 2022, approximately 90% of the Company's Core
debt is fixed, inclusive of interest rate swap contracts with a
weighted average duration of approximately 6 years.
CONSOLIDATED FINANCIAL
RESULTS
A complete reconciliation, in dollars and per share amounts, of
(i) net loss or 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.
Net (Loss) Income
Amounts discussed below are net of noncontrolling interests.
Net loss attributable to Acadia for the quarter ended June 30,
2022, was $0.4 million, or $0.00 per share, which included a $8.9
million loss, or $0.09 per share, from the unrealized
mark-to-market holding loss on its investment in Albertsons
supermarkets ("Albertsons"), partially offset by a $3.0 million
gain, or $0.03 per share, on a Fund disposition.
Net income attributable to Acadia for the quarter ended June 30,
2021, was $3.7 million, or $0.04 per share, which included: (i)
$1.5 million, or $0.02 per share, attributable to an aggregate gain
on dispositions of Fund investments and (ii) $0.5 million, or $0.01
per share, primarily from the unrealized mark-to-market holding
gain on Albertsons.
Net income attributable to Acadia for the six months ended June
30, 2022, was $16.5 million, or $0.17 per share, which included an
$11.3 million gain, or $0.11 per share, on Fund dispositions offset
by $5.3 million, or $0.05 per share, from the unrealized
mark-to-market holding loss on Albertsons.
Net income attributable to Acadia for the six months ended June
30, 2021, was $8.5 million, or $0.09 per share, which included: (i)
$6.6 million, or $0.07 per share, attributable to an aggregate gain
on dispositions of Core Portfolio and Fund investments and (ii)
$1.9 million, or $0.02 per share, primarily from the unrealized
mark-to-market holding gain on Albertsons. These benefits were
partially offset by $3.7 million, or $0.04 per share, related to
credit loss, straight-line rent reserves and tenant abatements,
primarily due to the COVID-19 Pandemic.
FFO as Defined by NAREIT
FFO for the quarter ended June 30, 2022 was $23.4 million, or
$0.23 per share, which included $8.9 million, or $0.09 per share,
from the unrealized mark-to-market holding loss on Albertsons.
FFO for the quarter ended June 30, 2021 was $28.1 million, or
$0.30 per share, which included $0.5 million, or $0.01 per share,
primarily from the unrealized mark-to-market holding gain on
Albertsons.
FFO for the six months ended June 30, 2022 was $58.8 million, or
$0.59 per share and included $5.3 million, or $0.05 per share, from
the unrealized mark-to-market holding loss on Albertsons and was
offset by $1.5 million, or $0.01 per share from the Fund III
disposition of its interest in Self Storage Management.
FFO for the six months ended June 30, 2021 was $52.1 million, or
$0.56 per share, which included $1.9 million, or $0.02 per share,
primarily from the unrealized mark-to-market holding gain on
Albertsons and was offset by $3.7 million, or $0.04 per share,
related to credit loss, straight-line rent reserves and tenant
abatements, primarily due to the COVID-19 Pandemic.
FFO Before Special Items
FFO Before Special Items for the quarter ended June 30, 2022 was
$32.3 million, or $0.32 per share, which excluded $8.9 million, or
$0.09 per share, from the unrealized mark-to-market holding loss on
Albertsons. The Company did not recognize any promote income for
the quarter ended June 30, 2022.
FFO Before Special Items for the quarter ended June 30, 2021 was
$27.6 million, or $0.30 per share, which excluded $0.5 million, or
$0.01 per share primarily from the unrealized mark-to-market
holding gain on Albertsons.
FFO Before Special Items for the six months ended June 30, 2022
was $65.0 million, or $0.65 per share, which excluded $5.1 million,
or $0.05 per share, from the unrealized mark-to-market holding loss
on Albertsons and $0.9 million, or $0.01 per share for net
acquisition and transaction costs from a Core acquisition.
FFO Before Special Items for the six months ended June 30, 2021
was $50.2 million, or $0.54 per share, which excluded $1.9 million,
or $0.02 per share, primarily from the unrealized mark-to-market
holding gain on Albertsons.
2022 GUIDANCE
The Company updated its annual 2022 guidance of earnings per
share, NAREIT Funds from Operations and FFO Before Special Items
attributable to Common Shareholders and Common OP Unit holders.
Additionally, the Company updated its net income and FFO to reflect
the unrealized holding (losses) gains recognized related to its
investment in Albertsons through June 30, 2022. The Company has not
reflected any forward-looking estimates involving future unrealized
holding gains or losses (i.e. changes in share price) on Albertsons
in its net income and NAREIT FFO guidance assumptions. Unrealized
holding (losses) gains on Albertson's shares are excluded from FFO
Before Special Items. The revised guidance is based upon Acadia's
current view of existing market conditions and assumptions for the
year ending December 31, 2022. Updated first quarter guidance was
previously announced on May 2, 2022.
2022 Annual Guidance
Initial
Updated Q1
Revised Q2
Net earnings per share attributable to
Common Shareholders
$0.19 to $0.32
$0.25 to $0.37
$0.27 to $0.36
Depreciation of real estate and
amortization of leasing costs (net of noncontrolling interests'
share)
1.01 to 1.04
1.01 to 1.04
1.01 to 1.04
Gain on disposition of properties (net of
noncontrolling interests' share)
(0.07)
(0.07)
(0.15)
Noncontrolling interest in Operating
Partnership
0.02
0.02
0.02
NAREIT Funds from operations per share
attributable to Common Shareholders and Common OP Unit
holders
$1.15 to $1.31
$1.21 to $1.36
$1.15 to $1.27
Net Promote and other Core and Fund
profits
(0.06) to (0.10)
(0.06) to (0.11)
(0.06) to (0.12)
Less: Albertsons unrealized holding losses
(gains) (net of noncontrolling interest share) for the six months
ended June 30, 2022
—
(0.04)
0.05
Funds from operations Before Special
Items, excluding Net Promote and other Core and Fund
profits
$1.09 to $1.21
$1.11 to $1.21
$1.14 to $1.20
Net Promote and other Core and Fund
profits(a)
0.06 to 0.10
0.06 to 0.11
0.06 to 0.12
Funds from operations Before Special
Items per share attributable to Common Shareholders and Common OP
Unit holders
$1.15 to $1.31
$1.17 to $1.32
$1.20 to $1.32
__________
(a) The remaining Net Promote and other Core and Fund profits
anticipated to be recognized in the second half of 2022 relate to
the expected realization of gains from the sale of Albertson's
shares. The lock-up on the sale of the shares was extended through
September 2022.
CONFERENCE CALL
Management will conduct a conference call on Wednesday, August
3, 2022 at 12:00 PM ET to review the Company’s earnings and
operating results. Participant registration and webcast information
is listed below.
Live Conference Call:
Date: Wednesday, August 3, 2022
Time: 12:00 PM ET
Participant Registration: Second Quarter 2022 Registration
Webcast Listen-only and Replay: www.acadiarealty.com under
Investors, Presentations & Events
The Company uses, and intends to use, the Investors page of its
website, which can be found at www.acadiarealty.com, 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 that may
include material nonpublic information. Accordingly, investors
should monitor the Investors page, in addition to following the
Company’s press releases, SEC filings, public conference calls,
presentations and webcasts. The information contained on, or that
may be accessed through, the website is not incorporated by
reference into, and is not a part of, this document.
About Acadia Realty Trust
Acadia Realty Trust is an equity real estate investment trust
focused on delivering long-term, profitable growth via its dual –
Core Portfolio and Fund – operating platforms and its disciplined,
location-driven investment strategy. Acadia Realty Trust is
accomplishing this goal by building a best-in-class core real
estate portfolio with meaningful concentrations of assets in the
nation’s most dynamic corridors; making profitable opportunistic
and value-add investments through its series of discretionary,
institutional funds; and maintaining a strong balance sheet. 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 and 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) the economic, political and social impact
of, and uncertainty surrounding the COVID-19 Pandemic, including
its impact on the Company’s tenants and their ability to make rent
and other payments or honor their commitments under existing
leases; (ii) macroeconomic conditions, such as a disruption of or
lack of access to the capital markets; (iii) the Company’s success
in implementing its business strategy and its ability to identify,
underwrite, finance, consummate and integrate diversifying
acquisitions and investments; (iv) 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; (v) increases in
the Company’s borrowing costs as a result of rising inflation,
changes in interest rates and other factors, including the
discontinuation of the USD London Interbank Offered Rate, which is
currently anticipated to occur in 2023; (vi) the Company’s ability
to pay down, refinance, restructure or extend its indebtedness as
it becomes due; (vii) 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; (viii) the Company’s ability to
obtain the financial results expected from its development and
redevelopment projects; (ix) the tenants’ ability and willingness
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; (x) the Company’s potential liability for
environmental matters; (xi) damage to the Company’s properties from
catastrophic weather and other natural events, and the physical
effects of climate change; (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 during the COVID-19 Pandemic; (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 Annual Report
on Form 10-K for the year ended December 31, 2021, 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 contained herein to reflect any change
in the Company’s expectations with regard thereto or change in the
events, conditions or circumstances on which such forward-looking
statements are based.
ACADIA REALTY TRUST AND
SUBSIDIARIES
Consolidated Statements of
Income (a)
(Dollars and Common Shares in
thousands, except per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Revenues
(As Restated)(b)
(As Restated)(b)
Rental income
$
80,559
$
72,069
$
160,026
$
138,067
Other
3,700
988
5,740
3,177
Total revenues
84,259
73,057
165,766
141,244
Operating expenses
Depreciation and amortization
34,971
30,540
68,684
61,180
General and administrative
10,661
10,653
22,598
19,645
Real estate taxes
11,628
12,214
22,908
23,420
Property operating
13,567
12,636
26,917
25,845
Total operating expenses
70,827
66,043
141,107
130,090
Gain on disposition of properties
12,216
5,909
41,031
10,521
Operating income
25,648
12,923
65,690
21,675
Equity in earnings of unconsolidated
affiliates
1,280
899
4,410
2,781
Interest and other income
2,961
2,054
5,896
3,754
Realized and unrealized holding (losses)
gains on investment in Albertsons and other
(26,283
)
1,842
(10,553
)
6,967
Interest expense
(19,222
)
(17,074
)
(37,147
)
(33,688
)
(Loss) income from continuing operations
before income taxes
(15,616
)
644
28,296
1,489
Income tax provision
(209
)
(192
)
(24
)
(340
)
Net (loss) income
(15,825
)
452
28,272
1,149
Net loss (income) attributable to
noncontrolling interests
15,451
3,259
(11,808
)
7,379
Net (loss) income attributable to
Acadia
$
(374
)
$
3,711
$
16,464
$
8,528
Less: net income attributable to
participating securities
—
(156
)
(408
)
(312
)
Net (loss) income attributable to Common
Shareholders - basic and diluted (loss) earnings per share
$
(374
)
$
3,555
$
16,056
$
8,216
Weighted average shares for basic and
diluted (loss) earnings per share
94,945
86,824
94,120
86,575
Net (loss) earnings per share - basic
and diluted (C)
$
0.00
$
0.04
$
0.17
$
0.09
ACADIA REALTY TRUST AND
SUBSIDIARIES
Reconciliation of Consolidated
Net Income (Loss) to Funds from Operations (a, d)
(Dollars and Common Shares and
Units in thousands, except per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
(As Restated)(b)
(As Restated)(b)
Net (loss) income attributable to
Acadia
$
(374
)
$
3,711
$
16,464
$
8,528
Depreciation of real estate and
amortization of leasing costs (net of noncontrolling interests'
share)
26,597
23,077
50,910
46,884
(Gain) loss on disposition of properties
(net of noncontrolling interests' share)
(2,961
)
933
(9,837
)
(4,163
)
Income attributable to Common OP Unit
holders
28
275
1,026
622
Distributions - Preferred OP Units
123
123
246
246
Funds from operations attributable to
Common Shareholders and Common OP Unit holders
$
23,413
$
28,119
$
58,809
$
52,117
Adjustments for Special Items:
Add back: Acquisition costs, net of
bargain purchase gain
—
—
859
—
Less: Unrealized holding (gain) loss on
investment in Albertsons and other (net of noncontrolling interest
share)
8,881
(487
)
5,311
(1,886
)
Funds from operations before Special
Items attributable to Common Shareholders and Common OP Unit
holders
$
32,294
$
27,632
$
64,979
$
50,231
Funds From Operations per Share -
Diluted
Basic weighted-average shares outstanding,
GAAP earnings
94,945
86,824
94,120
86,575
Weighted-average OP Units outstanding
5,311
5,135
5,313
5,127
Assumed conversion of Preferred OP Units
to common shares
25
465
25
465
Assumed conversion of LTIP units and
restricted share units to common shares
—
203
440
87
Weighted average number of Common Shares
and Common OP Units
100,281
92,627
99,898
92,254
Diluted Funds from operations, per Common
Share and Common OP Unit
$
0.23
$
0.30
$
0.59
$
0.56
Diluted Funds from operations before
Special Items, per Common Share and Common OP Unit
$
0.32
$
0.30
$
0.65
$
0.54
ACADIA REALTY TRUST AND
SUBSIDIARIES
Reconciliation of Consolidated
Operating Income to Net Property Operating Income (“NOI”)
(a)
(Dollars in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
(As Restated)(b)
(As Restated)(b)
Consolidated operating income
$
25,648
$
12,923
$
65,690
$
21,675
Add back:
General and administrative
10,661
10,653
22,598
19,645
Depreciation and amortization
34,971
30,540
68,684
61,180
Less:
Above/below market rent, straight-line
rent and other adjustments
(5,667
)
(4,476
)
(12,263
)
(8,932
)
Gain on disposition of properties
(12,216
)
(5,909
)
(41,031
)
(10,521
)
Consolidated NOI
53,397
43,731
103,678
83,047
Noncontrolling interest in consolidated
NOI
(15,313
)
(11,451
)
(31,098
)
(21,723
)
Less: Operating Partnership's interest in
Fund NOI included above
(3,835
)
(2,999
)
(7,908
)
(5,534
)
Add: Operating Partnership's share of
unconsolidated joint ventures NOI (e)
3,567
3,764
7,340
7,064
NOI - Core Portfolio
$
37,816
$
33,045
$
72,012
$
62,854
ACADIA REALTY TRUST AND
SUBSIDIARIES
Consolidated Balance
Sheets (a)
(Dollars in thousands)
As of
June 30, 2022
December 31, 2021
ASSETS
Investments in real estate, at cost
Land
$
845,022
$
739,641
Buildings and improvements
3,037,234
2,892,051
Tenant improvements
212,285
199,925
Construction in progress
12,494
11,131
Right-of-use assets - finance leases
25,086
25,086
4,132,121
3,867,834
Less: Accumulated depreciation and
amortization
(690,945
)
(648,461
)
Operating real estate, net
3,441,176
3,219,373
Real estate under development
203,036
203,773
Net investments in real estate
3,644,212
3,423,146
Notes receivable, net
137,306
153,886
Investments in and advances to
unconsolidated affiliates
333,529
322,326
Other assets, net
204,432
186,509
Right-of-use assets - operating leases,
net
39,024
40,743
Cash and cash equivalents
23,921
17,746
Restricted cash
11,023
9,813
Rents receivable, net
45,437
43,625
Assets of properties held for sale
—
63,952
Total assets
$
4,438,884
$
4,261,746
LIABILITIES
Mortgage and other notes payable, net
$
1,104,355
$
1,140,293
Unsecured notes payable, net
613,384
559,040
Unsecured line of credit
96,487
112,905
Accounts payable and other liabilities
197,094
236,415
Lease liability - operating leases,
net
37,030
38,759
Dividends and distributions payable
18,398
14,460
Distributions in excess of income from,
and investments in, unconsolidated affiliates
8,918
9,939
Total liabilities
2,075,666
2,111,811
Commitments and contingencies
Redeemable noncontrolling interest
EQUITY
Acadia Shareholders' Equity
Common shares, $0.001 par value,
authorized 200,000,000 shares, issued and outstanding 94,928,598
and 89,303,545 shares, respectively
95
89
Additional paid-in capital
1,895,556
1,754,383
Accumulated other comprehensive income
(loss)
11,240
(36,214
)
Distributions in excess of accumulated
earnings
(214,279
)
(196,645
)
Total Acadia shareholders’ equity
1,692,612
1,521,613
Noncontrolling interests
670,606
628,322
Total equity
2,363,218
2,149,935
Total liabilities and equity
$
4,438,884
$
4,261,746
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 made available on the Company’s website at
www.acadiarealty.com.
- See the Company's Annual Report on Form 10-K and revised
Restatement 8-K filed with the SEC on March 1, 2022 for a detailed
reconciliation to previously reported amounts and a detailed
description of adjustments thereon. The restatement primarily
impacted the classification of certain amounts within the Company’s
consolidated balance sheets, statements of operations and
statements of cash flows.
- 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, 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. They are helpful as they
exclude various items included in net income that are not
indicative of the operating performance, such as gains (losses)
from sales of real estate property, depreciation and amortization,
and impairment of real estate property. 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 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 property,
plus depreciation and amortization, impairment of real estate
property, and after adjustments for unconsolidated partnerships and
joint ventures. Also consistent with NAREIT’s definition of FFO,
the Company has elected to include gains and 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 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 and, in particular, the impact of the unrealized
mark-to-market gain and loss attributable to the Company's
investment in Albertsons.
- The pro-rata share of NOI is based upon the Operating
Partnership’s stated ownership percentages in each venture or
Fund’s operating agreement and does not include the Operating
Partnership's share of NOI from unconsolidated joint ventures
within the Funds.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220802005473/en/
Jennifer Han (914) 288-8100
Acadia Realty (NYSE:AKR)
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