Acadia Realty Trust (NYSE: AKR) (“Acadia” or the “Company”)
today reported operating results for the quarter and year-to-date
period ended September 30, 2021. 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, funds from operations ("FFO") as
per NAREIT and before Special Items (discussed below), and net
property operating income ("NOI").
Third Quarter and Recent
Highlights
- Third Quarter Earnings and Operating Results:
- GAAP earnings per share of $0.13, FFO per share of $0.41 and
FFO before Special Items per share of $0.27
- Increased same-property NOI by 7%
- Increased cash collections to 97%
- Core Portfolio Leasing:
- Core Portfolio leasing pipeline exceeded $16 million, which
included $10 million of executed leases to date
- Driven by its Street portfolio, GAAP and cash leasing spreads
increased to 18.5% and 10.8%, respectively, on comparable new and
renewal leases
- Core Portfolio is 90.3% occupied and 92.6% leased as of
September 30, 2021, compared to 89.8% occupied and 92.4% leased as
of June 30, 2021
- Core Structured Financing and Fund V Acquisitions
Activity:
- Funded a $42 million Core structured financing investment
during the third quarter and approximately $60 million year to
date
- Completed approximately $96 million of Fund V acquisitions
during the quarter along with a growing pipeline
- City Point (Fund II) Leasing Update:
- Signed an approximately 70,000 square feet lease with an
international retailer for a significant portion of the former
Century 21 space
- BASIS independent school opened in October 2021
“Our strong third quarter results were driven by a combination
of solid leasing activity and improved tenant performance,” stated
Kenneth F. Bernstein, President and CEO of Acadia Realty Trust.
“This activity reflects retailer's confidence in the strength of
the recovery and the importance of their physical stores,
especially in key, must-have locations. We are also beginning to
see important contributions to our earnings growth from our recent
and continued investment activity, both within our Core Portfolio
and Fund Platform. This combination of strong internal growth
complemented with our profitable investment activity positions us
for the potential for strong results for several years to
come.”
CORE PORTFOLIO
Core Portfolio Operating
Results
The Company had an increase in same-property NOI of 7% for the
third quarter 2021 as compared to the third quarter 2020, driven by
rent commencement on new leases and improved credit reserves.
The Core Portfolio was 90.3% occupied and 92.6% leased as of
September 30, 2021 compared to 89.8% occupied and 92.4% leased as
of June 30, 2021. The leased rate includes space that is leased but
not yet occupied and excludes development and redevelopment
properties.
Driven by its Street portfolio, the Company generated an 18.5%
increase in rent spreads on a GAAP basis and 10.8% increase in rent
spreads on a cash basis, on 15 conforming new and renewal leases
aggregating approximately 44,000 square feet during the third
quarter. Subsequent to the third quarter, the Company profitably
pre-leased 565 Broadway in Soho, New York.
The Company's Core Portfolio leasing pipeline exceeded $16
million including $10 million executed to date.
Acadia increased cash collections to 97% for the third quarter
as of October 12, 2021.
The Company's pro-rata share of net credit losses and abatements
was $0.2 million, inclusive of a benefit of $1.6 million of
previously-reserved tenant accounts for the quarter ended September
30, 2021 as follows:
Third Quarter 2021 Credit Losses and
Reserves
Core Same Store
Core Other
Funds
Total
Per Share
Credit Loss and Abatements - Billed Rents
and Recoveries
$
1.4
$
—
$
0.4
$
1.8
$
0.02
Prior Period (Benefit), Net
(0.6
)
(0.7
)
(0.3
)
(1.6
)
(0.02
)
Total
$
0.8
$
(0.7
)
$
0.1
$
0.2
$
—
CORE STRUCTURED FINANCING AND FUND V
ACQUISITIONS ACTIVITY
Core Structured Financing
Investment
In September 2021, the Company completed a $42 million
structured financing investment on a property located at 57-63
Greene Street in Soho, New York that included certain participation
and purchase provisions. This property expanded the Company’s
presence and existing cluster of street retail assets on Greene
Street.
Year to date, the Company has made approximately $60 million of
structured financing investments.
Fund V Acquisitions
Fund V completed $96 million of acquisitions during the third
quarter and its pipeline continues to grow.
Canton Marketplace, Canton, GA. In August 2021, Fund V
completed the acquisition of Canton Marketplace, a 350,000
square-foot power center located in Canton, Georgia for $51
million. At acquisition, the property was 87% leased to a strong
lineup of tenants including Dick’s Sporting Goods, TJ Maxx and Best
Buy and is shadow-anchored by Target, Kohl’s and Lowe’s. At
approximately $150 per foot acquisition cost, the property is
consistent with Acadia’s “only game in town” strategy, with
attractive co-tenancy and a strong renewal history. The acquisition
of Canton Marketplace includes the assumption of a $31.8 million
mortgage with approximately 20 months of remaining term.
Monroe Marketplace, Selinsgrove, PA. In September 2021,
Fund V completed the acquisition of Monroe Marketplace, a 370,000
square-foot grocery-anchored shopping center located along the
highly trafficked Route 11/15 in Selinsgrove, Pennsylvania for
approximately $45 million and at approximately $120 per foot
acquisition cost. The property is 99% leased, anchored by Giant
supermarket and Kohl’s and shadow-anchored by Target. Giant
supermarket’s lease term was extended to 2035 in connection with
the acquisition.
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 or loss to NOI is
included in the financial tables of this release.
Net Income (Loss)
Net income attributable to Acadia for the quarter ended
September 30, 2021 was $12.1 million, or $0.13 per share, which
included $13.4 million, or $0.14 per share, from the unrealized
mark-to-market gain on Albertsons, which was partially offset by
Fund impairment charges of $2.3 million, or $0.02 per share. Net
loss attributable to Acadia for the quarter ended September 30,
2020 was $9.0 million, or $0.10 per share, which included (i) $13.3
million, or $0.15 per share, related to credit loss, straight-line
rent reserves and tenant abatements, primarily due to the COVID-19
Pandemic and (ii) $2.2 million, or $0.03 per share from the
unrealized mark-to-market loss on Albertsons.
Net income attributable to Acadia for the nine months ended
September 30, 2021 was $21.1 million, or $0.24 per share, which
included (i) $15.8 million, or $0.17 per share, from the unrealized
mark-to-market gain on Albertsons and (ii) $6.6 million, or $0.07
per share, attributable to an aggregate gain on dispositions of
Core Portfolio and Fund investments, which was partially offset by
(i) $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 and (ii) Fund impairment charges of $2.3
million, or $0.02 per share. Net income attributable to Acadia for
the nine months ended September 30, 2020 was $2.0 million, or $0.02
per share, which included $22.6 million of Acadia's share, or $0.25
per share from the monetization of and unrealized mark-to-market
gain on Albertsons, which was offset by (i) $26.9 million, or $0.30
per share, related to credit loss, straight-line rent reserves and
tenant abatements and (ii) Fund impairment charges of $12.4
million, or $0.14 per share, primarily due to the COVID-19
Pandemic.
FFO as Defined by NAREIT
FFO for the quarter ended September 30, 2021 was $38.3 million,
or $0.41 per share, and included $13.4 million, or $0.14 per share,
from the unrealized mark-to-market gain on Albertsons. FFO for the
quarter ended September 30, 2020 was $15.6 million, or $0.17 per
share, which included (i) $13.3 million, or $0.15 per share,
related to credit loss and straight-line rent reserves, primarily
due to the COVID-19 Pandemic and (ii) $2.2 million, or $0.03 per
share, from the unrealized mark-to-market loss on Albertsons.
FFO for the nine months ended September 30, 2021 was $91.0
million, or $0.98 per share, and included $15.8 million, or $0.17
per share, from the unrealized mark-to-market gain on Albertsons
and was offset by $3.7 million, or $0.04 per share, related to
credit loss, straight-line reserves and tenant abatements,
primarily due to the COVID-19 Pandemic. FFO for the nine months
ended September 30, 2020 was $88.4 million, or $0.96 per share,
inclusive of $22.6 million, or $0.25 per share, from the
monetization and unrealized mark-to-market gain on Albertsons,
which was offset by $26.9 million, or $0.29 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 September 30,
2021 was $25.0 million, or $0.27 per share, which excluded $13.4
million, or $0.14 per share, from the unrealized mark-to-market
gain on Albertsons. FFO before Special Items for the quarter ended
September 30, 2020 was $17.8 million, or $0.20 per share, which
excluded approximately $2.2 million, or $0.03 per share from the
unrealized mark-to-market loss on Albertsons.
FFO before Special Items for the nine months ended September 30,
2021 was $75.2 million, or $0.81 per share, which excluded $15.8
million, or $0.17 per share, from the unrealized mark-to-market
gain on Albertsons. FFO before Special Items for the nine months
ended September 30, 2020 was $72.3 million, or $0.79 per share,
which excluded $16.2 million, or $0.18 per share, from the
unrealized mark-to-market gain on Albertsons.
FUND PLATFORM
City Point (Fund II) Leasing Update
City Point signed an approximately 70,000 square feet lease with
an international retailer for a significant portion of the former
Century 21 space.
The BASIS independent school opened its second Brooklyn campus
in October 2021 for approximately 60,000 square feet.
2021 GUIDANCE
The Company reaffirmed its annual 2021 guidance for FFO before
Special Items of $1.05 to $1.14. Additionally, the Company updated
its net income and FFO to reflect the year-to-date unrealized
holding gains recognized related to its investment in Albertsons
through September 30, 2021. The Company has not reflected any
forward-looking estimates on Albertsons in its net income and FFO
guidance assumptions. The impact of such change is illustrated in
the table below:
2021 Guidance
Initial
Q2
Q3
Net (loss) earnings per share
attributable to Common Shareholders
$(0.12) to $0.04
$(0.02) to $0.07
$0.12 to $0.21
Depreciation of real estate and
amortization of leasing costs (net of noncontrolling interests'
share)
1.22 to 1.26
1.22 to 1.26
1.22 to 1.26
Gain on disposition of properties (net of
noncontrolling interests' share)
(0.05) to (0.07)
(0.05) to (0.07)
(0.05) to (0.07)
Noncontrolling interest in Operating
Partnership
(0.07) to (0.09)
(0.07) to (0.09)
(0.07) to (0.09)
Funds from operations per share
attributable to Common Shareholders and Common OP Unit
holders
$0.98 to $1.14
$1.08 to $1.17
$1.22 to $1.31
Adjustments for Special Items:
Less: Albertsons unrealized holding gain
(net of noncontrolling interest share)
—
(0.03)
(0.17)
Funds from operations before Special
Items per share attributable to Common Shareholders and Common OP
Unit holders
$0.98 to $1.14
$1.05 to $1.14
$1.05 to $1.14
CONFERENCE CALL
Management will conduct a conference call on Wednesday, October
27, 2021 at 11:00 AM ET to review the Company’s earnings and
operating results. Dial-in and webcast information is listed
below.
Live Conference Call:
Date: Wednesday, October 27, 2021 Time: 11:00 AM ET Dial#:
844-309-6711 Passcode: “Acadia Realty” or “7193085” Webcast
(Listen-only): www.acadiarealty.com under Investors, Presentations
& Events
Phone Replay:
Dial#: 855-859-2056 Passcode: “7193085” Available Through:
Wednesday, November 3, 2021
Webcast 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
(a) its impact on the Company’s tenants and their ability to make
rent and other payments or honor their commitments under existing
leases; (b) the rate and efficacy of COVID-19 vaccines; (c)
temporary or permanent migration out of major cities by customers,
including cities where the Company’s properties are located, which
may have a negative impact on the Company’s tenant's businesses;
(d) to the extent the Company was seeking to sell properties in the
near term, significantly greater uncertainty regarding the
Company's ability to do so at attractive prices, and (e) the
potential adverse impact on returns from development and
redevelopment projects; (ii) the ability and willingness of the
Company’s tenants (in particular its major tenants) and other third
parties to satisfy their obligations under their respective
contractual arrangements with the Company; (iii) macroeconomic
conditions, such as a disruption of or lack of access to the
capital markets; (iv) the Company’s success in implementing its
business strategy and its ability to identify, underwrite, finance,
consummate and integrate diversifying acquisitions and investments;
(v) 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; (vi) increases in the Company’s borrowing costs as
a result of changes in interest rates and other factors, including
the potential phasing out of the London Interbank Offered Rate
after 2021; (vii) the Company’s ability to pay down, refinance,
restructure or extend its indebtedness as it becomes due; (viii)
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;
(ix) the Company’s ability to obtain the financial results expected
from its development and redevelopment projects; (x) 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; (xi) the
Company’s liability for environmental matters; (xii) damage to the
Company’s properties from catastrophic weather and other natural
events, and the physical effects of climate change; (xiii)
uninsured losses; (xiv) the Company’s ability and willingness to
maintain its qualification as a REIT in light of economic, market,
legal, tax and other considerations; (xv) information technology
security breaches, including increased cybersecurity risks relating
to the use of remote technology during the COVID-19 Pandemic; and
(xvi) the loss of key executives.
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, 2020 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
Operations (a)
(dollars and Common Shares in
thousands, except per share data)
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
Revenues
Rental income
$
71,852
$
50,300
$
212,723
$
183,396
Other
1,594
981
4,777
3,078
Total revenues
73,446
51,281
217,500
186,474
Operating expenses
Depreciation and amortization
30,866
34,457
93,601
101,627
General and administrative
9,978
8,625
29,645
26,415
Real estate taxes
11,320
10,689
35,286
31,833
Property operating
12,698
11,559
39,065
41,685
Impairment charges
9,925
—
9,925
51,549
Total operating expenses
74,787
65,330
207,522
253,109
Gain on disposition of properties
—
24
10,521
509
Operating (loss) income
(1,341
)
(14,025
)
20,499
(66,126
)
Equity in earnings (losses) of
unconsolidated affiliates
644
(624
)
4,013
(155
)
Interest and other income
2,354
2,132
6,108
7,156
Realized and unrealized holding gains
(losses) on investments and other
47,293
(7,946
)
56,511
79,335
Interest expense
(17,334
)
(17,752
)
(52,080
)
(54,373
)
Income (loss) from continuing operations
before income taxes
31,616
(38,215
)
35,051
(34,163
)
Income tax (provision) benefit
(59
)
(74
)
(403
)
741
Net income (loss)
31,557
(38,289
)
34,648
(33,422
)
Net (income) loss attributable to
noncontrolling interests
(19,488
)
29,259
(13,499
)
35,388
Net income (loss) attributable to
Acadia
$
12,069
$
(9,030
)
$
21,149
$
1,966
Less: net income attributable to
participating securities
(156
)
—
(468
)
(233
)
Net income (loss) attributable to Common
Shareholders - basic and diluted earnings per share
$
11,913
$
(9,030
)
$
20,681
$
1,733
Weighted average shares for basic and
diluted earnings (loss) per share
88,481
86,309
87,217
86,486
Net earnings (loss) per share - basic
and diluted (b)
$
0.13
$
(0.10
)
$
0.24
$
0.02
ACADIA REALTY TRUST AND
SUBSIDIARIES
Reconciliation of Consolidated
Net Income to Funds From Operations (a, c)
(dollars and Common Shares and
Units in thousands, except per share data)
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
Net income (loss) attributable to
Acadia
$
12,069
$
(9,030
)
$
21,149
$
1,966
Depreciation of real estate and
amortization of leasing costs (net of noncontrolling interests'
share)
23,111
25,106
69,995
73,584
Impairment charges (net of noncontrolling
interests' share)
2,294
—
2,294
12,400
Gain on disposition of properties (net of
noncontrolling interests' share)
—
(6
)
(4,163
)
(117
)
Income (loss) attributable to Common OP
Unit holders
749
(475
)
1,371
199
Distributions - Preferred OP Units
123
4
369
372
Funds from operations attributable to
Common Shareholders and Common OP Unit holders
$
38,346
$
15,599
$
91,015
$
88,404
Adjustments for Special Items:
Less: Albertsons unrealized holding (gain)
loss (net of noncontrolling interest share)
(13,384
)
2,240
(15,810
)
(16,157
)
Funds from operations before Special
Items attributable to Common Shareholders and Common OP Unit
holders
$
24,962
$
17,839
$
75,205
$
72,247
Funds From Operations per Share -
Diluted
Basic weighted-average shares outstanding,
GAAP earnings
88,481
86,309
87,217
86,486
Weighted-average OP Units outstanding
5,121
4,890
5,125
5,027
Assumed conversion of Preferred OP Units
to common shares
465
25
465
465
Assumed conversion of LTIP units and
restricted share units to common shares
16
—
—
—
Weighted average number of Common Shares
and Common OP Units
94,083
91,224
92,807
91,978
Diluted Funds from operations, per Common
Share and Common OP Unit
$
0.41
$
0.17
$
0.98
$
0.96
Diluted Funds from operations before
Special Items, per Common Share and Common OP Unit
$
0.27
$
0.20
$
0.81
$
0.79
ACADIA REALTY TRUST AND
SUBSIDIARIES
Reconciliation of Consolidated
Operating Income (Loss) to Net Property Operating Income
(“NOI”) (a)
(dollars in thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
Consolidated operating (loss) income
$
(1,341
)
$
(14,025
)
$
20,499
$
(66,126
)
Add back:
General and administrative
9,978
8,625
29,645
26,415
Depreciation and amortization
30,866
34,457
93,601
101,627
Impairment charges
9,925
—
9,925
51,549
Straight-line rent (recoveries)
reserves
(258
)
13,185
327
19,714
Less:
Above/below market rent, straight-line
rent and other adjustments
(4,572
)
(3,671
)
(14,105
)
(6,256
)
Gain on disposition of properties
—
(24
)
(10,521
)
(509
)
Consolidated NOI
44,598
38,547
129,371
126,414
Noncontrolling interest in consolidated
NOI
(12,576
)
(10,335
)
(35,810
)
(36,327
)
Less: Operating Partnership's interest in
Fund NOI included above
(3,104
)
(2,289
)
(8,853
)
(8,710
)
Add: Operating Partnership's share of
unconsolidated joint ventures NOI (d)
2,961
3,133
10,025
12,353
NOI - Core Portfolio
$
31,879
$
29,056
$
94,733
$
93,730
ACADIA REALTY TRUST AND
SUBSIDIARIES
Consolidated Balance
Sheets (a)
(dollars in thousands)
As of
September 30, 2021
December 31, 2020
ASSETS
Investments in real estate, at cost
Land
$
777,991
$
776,275
Buildings and improvements
2,889,285
2,848,781
Tenant improvements
211,588
191,046
Construction in progress
12,341
5,751
Right-of-use assets - finance leases
25,086
25,086
3,916,291
3,846,939
Less: Accumulated depreciation and
amortization
(647,718
)
(586,800
)
Operating real estate, net
3,268,573
3,260,139
Real estate under development
219,037
247,349
Net investments in real estate
3,487,610
3,507,488
Notes receivable, net
158,468
101,450
Investments in and advances to
unconsolidated affiliates
305,668
249,807
Other assets, net
174,750
173,809
Right-of-use assets - operating leases,
net
41,577
76,268
Cash and cash equivalents
17,359
19,232
Restricted cash
14,827
14,692
Rents receivable, net
44,386
44,136
Total assets
$
4,244,645
$
4,186,882
LIABILITIES
Mortgage and other notes payable, net
$
1,181,028
$
1,204,581
Unsecured notes payable, net
503,966
420,858
Unsecured line of credit
102,905
138,400
Accounts payable and other liabilities
245,697
269,911
Lease liability - operating leases,
net
39,743
88,816
Dividends and distributions payable
14,339
147
Distributions in excess of income from,
and investments in, unconsolidated affiliates
15,456
15,616
Total liabilities
2,103,134
2,138,329
Commitments and contingencies
EQUITY
Acadia Shareholders' Equity
Common shares, $0.001 par value,
authorized 200,000,000 shares, issued and outstanding 88,451,668
and 86,268,303 shares, respectively
88
86
Additional paid-in capital
1,733,448
1,683,165
Accumulated other comprehensive loss
(43,169
)
(74,891
)
Distributions in excess of accumulated
earnings
(185,373
)
(167,046
)
Total Acadia shareholders’ equity
1,504,994
1,441,314
Noncontrolling interests
636,517
607,239
Total equity
2,141,511
2,048,553
Total liabilities and equity
$
4,244,645
$
4,186,882
ACADIA REALTY TRUST AND SUBSIDIARIES
Notes to Financial Highlights:
(a)
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 and made available on the Company’s
website at www.acadiarealty.com.
(b)
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.
(c)
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 mark-to-market gain and loss
attributable to the Company's investment in Albertsons.
(d)
The pro-rata share of NOI is based upon
the Operating Partnership’s stated ownership percentages in each
venture or Fund’s operating agreement. Does not include the
Operating Partnership's share of NOI from unconsolidated joint
ventures within the Funds.
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version on businesswire.com: https://www.businesswire.com/news/home/20211026006189/en/
Sunny Holcomb (914) 288-8100
Acadia Realty (NYSE:AKR)
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