Acadia Realty Trust (NYSE: AKR) (“Acadia” or the “Company”)
today reported operating results for the quarter ended June 30,
2023. For the quarter ended June 30, 2023, net earnings per share
was $0.09. and for the six months ended June 30, 2023, net earnings
per share was $0.23. 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, net property
operating income ("NOI") and same-property NOI.
Second Quarter and Recent
Highlights
- Second Quarter Earnings and Operating Results:
- NAREIT FFO per share of $0.37
- FFO Before Special Items per share of $0.36
- Second quarter results exceeded expectations, driving a full
year guidance increase due to outperformance in leasing and better
than anticipated collections, along with a one-time gain described
below
- Within its Core Portfolio, generated an increase in
same-property NOI of 5.0% and 5.9% for the three and six months
ended June 30, 2023, respectively
- Non-recurring Gain Recognized in the Second Quarter:
- Results for the quarter ended June 30, 2023 included a gain of
$7.8 million, or $0.08 per share, from the termination of the Bed
Bath and Beyond below-market lease at 555 9th Street in San
Francisco
- The Company had budgeted $0.03 per share to be realized
throughout 2023 in its initial full year 2023 guidance reflecting
this lease; the lease termination resulted in an incremental $0.05
relative to its prior full year 2023 guidance
- Core Portfolio Leasing:
- Driven by leasing activity within its street assets, generated
GAAP and cash leasing spreads of 21.6% and 13.1%, respectively, on
conforming new and renewal leases
- As of June 30, 2023, the Core Portfolio was 95.2% leased and
92.2% occupied, compared to leased and occupied rates of 94.6% and
92.8% as of March 31, 2023
- In July 2023, the Company signed a new lease at 565 Broadway
(corner of Prince and Broadway) in Soho, New York with a cash rent
spread of approximately 45% and terminated the previously executed
lease signed in October 2021
- Fund V Transactional Activity:
- Post quarter end, completed a Fund V acquisition in Tampa,
Florida for $49.4 million, inclusive of transaction costs
- Balance Sheet:
- Approximately 96% of the Core Portfolio debt was fixed or
effectively fixed, inclusive of swap contracts, at a blended rate
of 4.28% as of June 30, 2023
- The Company has limited near-term maturity risk on its $1.2
billion of Core Portfolio debt with 3.7%, 3.4% and 11.1% maturing
in 2023, 2024 and 2025, respectively, assuming all extension
options are exercised
- Guidance Increase Update:
- Updated and increased its annual 2023 guidance to reflect $0.02
to $0.03 from continued strong leasing, better than anticipated
collections and an incremental $0.05 from a one-time gain as
follows:
- Net earnings per share increased to $0.25 to $0.33 from $0.16
to $0.23
- NAREIT FFO per share increased to $1.28 to $1.36 from $1.19 to
$1.26
- FFO Before Special Items per share increased to $1.26 to $1.34
from $1.19 to $1.26
“We had another strong quarter driven by the internal growth
embedded in our Core Portfolio. This quarter marks the seventh of
the last nine quarters with same-store NOI growth at 5% or higher
with an average of 6.9% overall for the nine quarters. While there
is uncertainty and mixed signals about near-term economic
conditions, tenant demand and tenant performance remain robust and
consistent with our near-term and long-term growth expectations. We
expect our leasing momentum and executed leases to more than offset
the near-term asset repositionings that we have been rightly
focused on for some time,” stated Kenneth F. Bernstein, President
and CEO of Acadia Realty Trust. "Additionally, we are starting to
see interesting opportunities arise from the dislocation in the
capital markets. We continue to be actively engaged with our
institutional capital partners and are well-positioned to quickly
pursue investments which benefit both Acadia’s shareholders and our
partners.”
CORE PORTFOLIO OPERATING
RESULTS
The Company had net earnings per share of $0.09, NAREIT FFO per
share of $0.37 and FFO Before Special Items per share of $0.36 for
the quarter ended June 30, 2023. Please refer to the Consolidated
Financial Results section below for additional details.
Driven by a combination of market rent growth, lease-up and
contractual rent increases within its street assets, the Company's
same-property NOI, excluding redevelopments, increased 5.0% for the
quarter ended June 30, 2023 and 5.9% during the six months ended
June 30, 2023.
CORE PORTFOLIO LEASING
UPDATE
Driven by street assets, the overall GAAP and cash leasing
spreads were 21.6% and 13.1%, respectively, on 19 conforming new
and renewal leases aggregating approximately 234,000 square feet
during the quarter ended June 30, 2023. Within the street
portfolio, the GAAP and cash leasing spreads for new and renewal
leases were 64.3% and 32.1%, respectively.
As of June 30, 2023, the Core Portfolio was 95.2% leased and
92.2% occupied compared to 94.6% leased and 92.8% occupied as of
March 31, 2023. The leased rate includes space that is leased but
not yet occupied and excludes development and redevelopment
properties. The quarterly decline in the occupied leased rate
reflects the previously announced recapture of the Bed Bath and
Beyond space in Wilmington, Delaware, which has been leased to
Dick’s Sporting Goods, where they will be expanding and opening a
flagship House of Sports. The recaptured and now re-leased Bed Bath
and Beyond space represented approximately 100 bps of occupancy
decline sequentially from March 31, 2023 to June 30, 2023.
In July 2023, the Company signed a new lease at 565 Broadway
(corner of Prince and Broadway) in Soho, New York with a cash rent
spread of approximately 45%. The Company terminated its previously
executed lease signed in October 2021.
FUND TRANSACTIONAL
ACTIVITY
Fund V
Cypress Creek, Lutz (Tampa), Florida. In July 2023, Fund
V completed its purchase of a 100% interest in Cypress Creek for
$49.4 million, inclusive of transaction costs. The asset is 98%
leased with anchors including Burlington Coat Factory, Total Wine
and Home Goods. Shop space includes national tenants Chipotle,
Verizon, T-Mobile, Five Below and Aspen Dental.
BALANCE SHEET
As of June 30, 2023, approximately 96% of the Core Portfolio
debt was fixed or effectively fixed, inclusive of interest rate
swap contracts at a blended rate of 4.28%. The Company has limited
near-term maturity risk on its $1.2 billion of Core debt with 3.7%,
3.4% and 11.1% maturing in 2023, 2024 and 2025, respectively,
assuming all extension options are exercised. At June 30, 2023, the
Company had $872 million of notional swap agreements associated
with managing and mitigating future interest rate risk on maturing
Core Portfolio debt with various maturities through 2030.
CONSOLIDATED 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. Amounts discussed below
are net of noncontrolling interests and all per share amounts are
on a fully-diluted basis.
Net Income
Net income attributable to Acadia for the quarter ended June 30,
2023, was $9.0 million, or $0.09 per share, which included: (i)
$7.8 million gain, or $0.08 per share, from the termination of the
Bed Bath and Beyond below-market lease and (ii) $1.7 million, or
approximately $0.02 per share, from the unrealized mark-to-market
holding gain on Albertsons Companies, Inc (”Albertsons”).
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,
partially offset by a $3.0 million gain, or $0.03 per share, on a
Fund disposition.
Net income attributable to Acadia for the six months ended June
30, 2023, was $22.1 million, or $0.23 per share, which included:
(i) $11.3 million, or $0.11 per share, from the receipt of the
Albertsons Special Dividend (”Special Dividend”); (ii) $7.8 million
gain, or $0.08 per share, from the termination of the Bed Bath and
Beyond below-market lease and (iii) $1.8 million, or approximately
$0.02 per share, from the unrealized mark-to-market holding gain on
Albertsons.
Net income attributable to Acadia for the six months ended June
30, 2022, was $16.1 million, or $0.17 per share, which included an
$11.3 million gain, or $0.11 per share, on Fund dispositions
partially offset by $5.3 million, or $0.05 per share, from the
unrealized mark-to-market holding loss on Albertsons.
FFO as Defined by NAREIT
- Second quarter NAREIT FFO exceeded expectations due to
outperformance in leasing and better than anticipated collections,
along with a one-time gain described below
- NAREIT FFO per share was $0.37 for the quarter ended June 30,
2023 compared with $0.23 per share for the quarter ended June 30,
2022
FFO as defined by NAREIT for the quarter ended June 30, 2023 was
$38.2 million, or $0.37 per share.
During the quarter ended June 30, 2023, the Company benefited
from $0.03 per share driven by continued strong leasing and better
than anticipated collections (primarily within its Funds) and also
included $1.7 million, or approximately $0.02 per share, from
unrealized mark-to-market holding gain on Albertsons. The Company
did not recognize any promote or other Fund transactional income
during the quarter.
FFO as defined by NAREIT for the quarter ended June 30, 2023
also included a gain of $7.8 million, or $0.08 per share, from the
termination of the Bed Bath and Beyond below-market lease. The
Company had initially budgeted $0.03 per share to be realized
throughout 2023 within its initial full year 2023 guidance
associated with this lease, resulting in an incremental $0.05
relative to its prior full year 2023 guidance.
FFO as defined by NAREIT 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, primarily from the unrealized mark-to-market
holding loss on Albertsons.
FFO as defined by NAREIT for the six months ended June 30, 2023
was $78.9 million, or $0.77 per share, which included: (i) $11.3
million, or $0.11 per share from the Albertson’s Special Dividend;
(ii) $7.8 million, or $0.08 per share gain from termination of the
Bed Bath and Beyond below-market lease and (iii) $1.8 million, or
approximately $0.02 per share from unrealized mark-to-market
holding gain on Albertsons.
FFO as defined by NAREIT 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 Before Special Items
- Second quarter FFO Before Special Items also exceeded
expectations due to the same outperformance in leasing and better
than anticipated collections, along with the one-time gain
- FFO Before Special Items was $0.36 per share for the quarter
ended June 30, 2023 compared with $0.32 per share for the quarter
ended June 30, 2022
FFO Before Special Items for the quarter ended June 30, 2023 was
$36.5 million, or $0.36 per share.
During the quarter ended June 30, 2023, the Company benefited
from $0.03 per share driven by continued strong leasing and better
than anticipated collections (primarily within its Funds) and also
excluded $1.7 million, or approximately $0.02 per share from the
unrealized mark-to-market holding gain on Albertsons. The Company
did not recognize any promote or other Fund transactional income
during the quarter.
FFO Before Special Items for the quarter ended June 30, 2023
also included a gain of $7.8 million, or $0.08 per share, from the
termination of the Bed Bath and Beyond below-market lease. The
Company had initially budgeted $0.03 per share to be realized
throughout 2023 within its initial full year 2023 guidance
associated with this lease, resulting in an incremental $0.05
relative to its prior full year 2023 guidance.
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, primarily from the unrealized mark-to-market
holding loss on Albertsons.
FFO Before Special Items for the six months ended June 30, 2023
was $77.2 million, or $0.75 per share, which included: (i) $11.3
million, or $0.11 per share from the Albertson’s Special Dividend
and (ii) $7.8 million gain, or $0.08 per share from the termination
of the Bed Bath and Beyond below-market lease and excluded $1.8
million, or approximately $0.02 per share 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 included $1.5 million,
or $0.01 per share from the Fund III disposition of its interest in
Self Storage Management and excluded (i) $5.3 million, or $0.05 per
share, from the unrealized mark-to-market holding loss on
Albertsons and (ii) $0.9 million, or $0.01 per share for net
acquisition and transaction costs from a Core Portfolio
acquisition.
GUIDANCE
The Company updated and increased its annual 2023 guidance as
follows:
- Net earnings per share increased to $0.25 to $0.33 from $0.16
to $0.23
- NAREIT FFO per share increased to $1.28 to $1.36 from $1.19 to
$1.26
- FFO Before Special Items per share increased to $1.26 to $1.34
from $1.19 to $1.26
Refer to the table below for the Summary of Revised Annual 2023
Guidance.
NAREIT FFO
FFO Before Special
Items
Low
High
Low
High
Prior Guidance Range 1
$1.19
to
$1.26
$1.19
to
$1.26
Increase to prior guidance due to
continued strong leasing and better than anticipated
collections
0.02
to
0.03
0.02
to
0.03
Year to date Unrealized holding gain (net
of noncontrolling interest share) 2,3
0.02
to
0.02
N/A
to
N/A
Revised guidance, prior to the incremental
portion of BBBY lease termination gain
$1.23
to
$1.31
$1.21
to
$1.29
Incremental portion of gain from BBBY
lease termination 4
0.05
to
0.05
0.05
to
0.05
Revised Annual Guidance
$1.28
to
$1.36
$1.26
to
$1.34
__________
- The prior guidance range represents the
updated guidance previously announced on May 2, 2023, in
conjunction with first quarter 2023 earnings, which increased the
initial guidance from $1.17 to $1.26.
- This represents the actual unrealized mark-to-market holding
gain related to the Company’s investment in Albertsons, which was
recognized in NAREIT FFO for the six months ended June 30, 2023.
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 guidance assumptions.
- Refer to Footnote 4 on page 12 of the ‘Notes to Financial
Highlights’ for the definition of Special Items. It is the
Company’s consistent practice to exclude unrealized gains and
losses from FFO Before Special Items and to include any realized
gains and losses related to the Company's investment in
Albertsons.
- Results for the three months ended June 30, 2023 included a
gain of $0.08 per share from the termination of the Bed Bath and
Beyond below-market lease at 555 9th Street in San Francisco. The
Company had budgeted $0.03 per share to be realized throughout 2023
within its initial full year 2023 guidance associated with this
lease, resulting in an incremental $0.05 per share relative to its
prior full year 2023 guidance.
2023 Guidance
Revised
Prior
Net earnings per share attributable to
Acadia
$0.25 to $0.33
$0.16 to $0.23
Depreciation of real estate and
amortization of leasing costs (net of noncontrolling interest
share)
$1.01
$1.01
Impairment charges (net of noncontrolling
interest share)
—
—
Gain on disposition of properties (net of
noncontrolling interest share)
—
—
Noncontrolling interest in Operating
Partnership
0.02
0.02
NAREIT Funds from operations per share
attributable to Common Shareholders and Common OP Unit
holders
$1.28 to $1.36
$1.19 to $1.26
Unrealized holding loss (gain) (net of
noncontrolling interest share)
(0.02)
—
Funds from operations Before Special
Items per share attributable to Common Shareholders and Common OP
Unit holders
$1.26 to $1.34
$1.19 to $1.26
CONFERENCE CALL
Management will conduct a conference call on Wednesday, August
2, 2023 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:
Wednesday, August 2, 2023
Time:
11:00 AM ET
Participant Call:
Second Quarter 2023 Dial-In
Participant Webcast:
Second Quarter 2023 Webcast
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 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, such as 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; (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, including the discontinuation of
the USD London Interbank Offered Rate, which was effected on June
30, 2023; (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 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; (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 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 Annual Report
on Form 10-K for the year ended December 31, 2022, 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
Consolidated Statements of
Income (1)
(Dollars and Common Shares in
thousands, except share and per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenues
Rental income
$
88,141
$
80,559
$
168,878
$
160,026
Other
1,807
3,700
2,909
5,740
Total revenues
89,948
84,259
171,787
165,766
Operating expenses
Depreciation and amortization
34,056
34,971
67,229
68,684
General and administrative
10,643
10,661
20,589
22,598
Real estate taxes
11,381
11,628
22,860
22,908
Property operating
14,210
13,567
29,343
26,917
Total operating expenses
70,290
70,827
140,021
141,107
Gain on disposition of properties
—
12,216
—
41,031
Operating income
19,658
25,648
31,766
65,690
Equity in (losses) earnings of
unconsolidated affiliates
(1,437
)
1,280
(1,408
)
4,410
Interest and other income
4,970
2,961
9,788
5,896
Realized and unrealized holding gains
(losses) on investments and other
1,815
(26,283
)
28,572
(10,553
)
Interest expense
(22,089
)
(19,222
)
(43,676
)
(37,147
)
Income (loss) from continuing operations
before income taxes
2,917
(15,616
)
25,042
28,296
Income tax provision
(165
)
(209
)
(288
)
(24
)
Net income (loss)
2,752
(15,825
)
24,754
28,272
Net loss attributable to redeemable
noncontrolling interests
1,091
—
3,166
—
Net loss (income) attributable to
noncontrolling interests
5,433
15,451
(5,284
)
(11,808
)
Net income (loss) attributable to Acadia
shareholders
$
9,276
$
(374
)
$
22,636
$
16,464
Less: net income attributable to
participating securities
(247
)
—
(490
)
(408
)
Net income (loss) attributable to Common
Shareholders - basic earnings per share
$
9,029
$
(374
)
$
22,146
$
16,056
Income (loss) from continuing operations
net of income attributable to participating securities for diluted
earnings per share
$
9,029
$
(374
)
$
22,146
$
16,056
Weighted average shares for basic earnings
per share
95,260
94,945
95,225
94,120
Weighted average shares for diluted
earnings per share
95,260
94,945
95,225
94,120
Net earnings per share - basic
(2)
$
0.09
$
0.00
$
0.23
$
0.17
Net earnings per share - diluted
(2)
$
0.09
$
0.00
$
0.23
$
0.17
ACADIA REALTY TRUST AND
SUBSIDIARIES
Reconciliation of Consolidated
Net Income to Funds from Operations (1,3)
(Dollars and Common Shares and
Units in thousands, except share and per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Net income (loss) attributable to
Acadia
$
9,276
$
(374
)
$
22,636
$
16,464
Depreciation of real estate and
amortization of leasing costs (net of noncontrolling interests'
share)
28,248
26,597
54,692
50,910
(Gain) on disposition of properties (net
of noncontrolling interests' share)
—
(2,961
)
—
(9,837
)
Income attributable to Common OP Unit
holders
574
28
1,368
1,026
Distributions - Preferred OP Units
123
123
246
246
Funds from operations attributable to
Common Shareholders and Common OP Unit holders
$
38,221
$
23,413
$
78,942
$
58,809
Adjustments for Special Items:
Add back: Acquisition costs, net of
bargain purchase gain
—
—
—
859
Unrealized holding (gain) loss (net of
noncontrolling interest share) (4)
(1,713
)
8,881
(1,779
)
5,311
Funds from operations before Special
Items attributable to Common Shareholders and Common OP Unit
holders
$
36,508
$
32,294
$
77,163
$
64,979
Funds From Operations per Share -
Diluted
Basic weighted-average shares outstanding,
GAAP earnings
95,260
94,945
95,225
94,120
Weighted-average OP Units outstanding
6,918
5,311
6,836
5,313
Assumed conversion of Preferred OP Units
to common shares
464
25
464
25
Assumed conversion of LTIP units and
restricted share units to common shares
—
—
—
440
Weighted average number of Common Shares
and Common OP Units
102,642
100,281
102,525
99,898
Diluted Funds from operations, per Common
Share and Common OP Unit
$
0.37
$
0.23
$
0.77
$
0.59
Diluted Funds from operations before
Special Items, per Common Share and Common OP Unit
$
0.36
$
0.32
$
0.75
$
0.65
ACADIA REALTY TRUST AND
SUBSIDIARIES
Reconciliation of Consolidated
Operating Income to Net Property Operating Income (“NOI”)
(1)
(Dollars in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Consolidated operating income
$
19,658
$
25,648
$
31,766
$
65,690
Add back:
General and administrative
10,643
10,661
20,589
22,598
Depreciation and amortization
34,056
34,971
67,229
68,684
Less:
Above/below market rent, straight-line
rent and other adjustments
(13,088
)
(5,851
)
(15,330
)
(12,608
)
Gain on disposition of properties
—
(12,216
)
—
(41,031
)
Consolidated NOI
51,269
53,213
104,254
103,333
Redeemable noncontrolling interest in
consolidated NOI
(1,182
)
—
(2,399
)
—
Noncontrolling interest in consolidated
NOI
(13,730
)
(15,377
)
(28,205
)
(31,254
)
Less: Operating Partnership's interest in
Fund NOI included above
(4,765
)
(3,634
)
(9,802
)
(7,478
)
Add: Operating Partnership's share of
unconsolidated joint ventures NOI (5)
4,141
3,413
8,100
7,054
NOI - Core Portfolio
$
35,733
$
37,615
$
71,948
$
71,655
ACADIA REALTY TRUST AND
SUBSIDIARIES
Consolidated Balance
Sheets (a)
(Dollars in thousands)
As of
June 30, 2023
December 31, 2022
ASSETS
Investments in real estate, at cost
Land
$
881,717
$
817,802
Buildings and improvements
2,997,760
2,987,594
Tenant improvements
239,305
216,899
Construction in progress
16,836
21,027
Right-of-use assets - finance leases
25,086
25,086
4,160,704
4,068,408
Less: Accumulated depreciation and
amortization
(774,128
)
(725,143
)
Operating real estate, net
3,386,576
3,343,265
Real estate under development
122,275
184,602
Net investments in real estate
3,508,851
3,527,867
Notes receivable, net ($899 and $898 of
allowance for credit losses as of June 30, 2023 and December 31,
2022, respectively)
123,902
123,903
Investments in and advances to
unconsolidated affiliates
191,925
291,156
Other assets, net
219,928
229,591
Right-of-use assets - operating leases,
net
35,481
37,281
Cash and cash equivalents
17,193
17,158
Restricted cash
12,325
15,063
Marketable securities
35,940
—
Rents receivable, net
47,557
49,506
Assets of properties held for sale
11,057
11,057
Total assets
$
4,204,159
$
4,302,582
LIABILITIES
Mortgage and other notes payable, net
$
935,348
$
928,639
Unsecured notes payable, net
647,589
696,134
Unsecured line of credit
180,087
168,287
Accounts payable and other liabilities
182,641
196,491
Lease liability - operating leases,
net
33,445
35,271
Dividends and distributions payable
18,519
18,395
Distributions in excess of income from,
and investments in, unconsolidated affiliates
8,588
10,505
Total liabilities
2,006,217
2,053,722
Commitments and contingencies
Redeemable noncontrolling interests
59,833
67,664
EQUITY
Acadia Shareholders' Equity
Common shares, $0.001 par value per share,
authorized 200,000,000 shares, issued and outstanding 95,296,799
and 95,120,773 shares, respectively
95
95
Additional paid-in capital
1,947,779
1,945,322
Accumulated other comprehensive income
49,855
46,817
Distributions in excess of accumulated
earnings
(312,057
)
(300,402
)
Total Acadia shareholders’ equity
1,685,672
1,691,832
Noncontrolling interests
452,437
489,364
Total equity
2,138,109
2,181,196
Total liabilities, redeemable
noncontrolling interests, and equity
$
4,204,159
$
4,302,582
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.
- 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 (loss) that are not
indicative of the operating performance, such as (i) gains (losses)
from sales of real estate properties; (ii) depreciation and
amortization and (iii) impairment of 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 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 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) transaction and 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
Fund’s operating agreement and does not include the Operating
Partnership's share of NOI from unconsolidated partnerships and
joint ventures within the Funds.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230801638361/en/
Jennifer Han (914) 288-8100
Acadia Realty (NYSE:AKR)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Acadia Realty (NYSE:AKR)
Historical Stock Chart
Von Mai 2023 bis Mai 2024