iREIT+HOYA Capital is the premier income-focused investing service on Seeking Alpha. Our focus is on income-producing asset classes that offer the opportunity for sustainable portfolio income , diversification , and inflation hedging . Get started with a Free Two-Week Trial and take a look at our top ideas across our exclusive income-focused portfolios.It’s been a while since I last covered Acadia Realty Trust ( AKR ). In that article, I highlighted the value of its high-quality street level retail properti ...

iREIT+HOYA Capital is the premier income-focused investing service on Seeking Alpha. Our focus is on income-producing asset classes that offer the opportunity for sustainable portfolio income , diversification , and inflation hedging . Get started with a Free Two-Week Trial and take a look at our top ideas across our exclusive income-focused portfolios.It’s been a while since I last covered Acadia Realty Trust ( AKR ). In that article, I highlighted the value of its high-quality street level retail properti ...

Core Points - Acadia Realty Trust has announced a cash dividend of $0.20 per common share for the quarter ended December 31, 2025 [1] - The dividend is payable on January 15, 2026, to shareholders on record as of December 31, 2025 [1] - Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth [1]

Financial Performance - Total revenues for Q3 2025 reached $101.006 million, a 15.0% increase from $87.745 million in Q3 2024[19] - Rental revenues increased to $98.714 million in Q3 2025, up 14.4% from $86.288 million in Q3 2024[19] - Total expenses for Q3 2025 were $90.837 million, a 29.3% increase compared to $70.253 million in Q3 2024[19] - Operating income decreased to $12.684 million in Q3 2025, down 27.9% from $17.492 million in Q3 2024[19] - Net loss attributable to Acadia shareholders for Q3 2025 was $5.618 million, compared to a profit of $8.414 million in Q3 2024[19] - Basic income per share for Q3 2025 was $0.03, down from $0.07 in Q3 2024[19] - Comprehensive loss for Q3 2025 was $14.280 million, compared to a loss of $26.788 million in Q3 2024[24] - Net loss for the nine months ended September 30, 2025, was $43.554 million, compared to a profit of $6.979 million for the same period in 2024[24] - Impairment charges for Q3 2025 amounted to $12.570 million, while there were no impairment charges in Q3 2024[19] - Equity in losses of unconsolidated affiliates for Q3 2025 was $(3.694) million, compared to earnings of $11.784 million in Q3 2024[19] Assets and Liabilities - As of September 30, 2025, total assets increased to $4,875,192,000 from $4,371,203,000 as of December 31, 2024, representing a growth of approximately 11.5%[16] - Total liabilities increased to $2,210,078,000 from $1,838,931,000, marking an increase of about 20.2%[16] - Cash and cash equivalents significantly increased to $49,388,000 from $16,806,000, reflecting a growth of approximately 194.5%[16] - Unsecured notes payable rose to $818,093,000 from $569,566,000, which is an increase of approximately 43.7%[16] - Acadia shareholders' equity grew to $2,246,020,000 from $2,065,672,000, representing an increase of about 8.7%[16] - The company reported a total of 131,031,455 common shares outstanding as of September 30, 2025, compared to 119,657,594 shares as of December 31, 2024, indicating an increase of approximately 9.5%[16] Cash Flow and Investments - Total cash provided by operating activities increased to $124,995,000 in 2025 from $102,576,000 in 2024, reflecting a growth of approximately 22%[30] - Acquisitions of real estate amounted to $406,907,000 in 2025, significantly higher than $48,855,000 in 2024[30] - Proceeds from the disposition of properties and other investments were $61,533,000 in 2025, compared to $58,670,000 in 2024[30] - Total net cash used in investing activities was $430,436,000 in 2025, compared to $50,133,000 in 2024, indicating a significant increase in investment activity[30] - Proceeds from unsecured debt reached $1,091,200,000 in 2025, compared to $342,984,000 in 2024, showing a substantial increase in financing[30] Dividends and Distributions - The company declared dividends of $0.20 per common share/OP unit, totaling $26,202 in distributions[27] - Dividends paid to common shareholders increased to $75,128,000 in 2025 from $54,681,000 in 2024[30] - Dividends/distributions declared and payable increased to $27,720,000 in 2025, up from $22,914,000 in 2024, representing a growth of 20.5%[31] - The company declared distributions of $0.60 per Common Share/Unit for the nine months ended September 30, 2025, compared to $0.55 for the same period in 2024, representing an increase of 9.1%[143] Impairment and Losses - The company experienced impairment charges of $37,210,000 in 2025, reflecting challenges in asset valuations[30] - The company recognized a loss on change in control of $9.6 million due to the acquisition of an additional 48% interest in the Renaissance Portfolio, increasing its ownership to 68%[72] - The company recorded an impairment charge of $3.5 million related to the 650 Bald Hill Road property for the three months ended September 30, 2025[81] Market and Economic Conditions - The company has noted potential risks including macroeconomic conditions and the ability to implement business strategies effectively, which could impact future performance[12] - Future performance may be influenced by changes in interest rates and borrowing costs due to elevated inflation[12] Real Estate Portfolio - The Company held ownership interests in 167 properties within its REIT Portfolio as of September 30, 2025[36] - The Company’s real estate portfolio primarily consists of street and urban retail properties, and suburban shopping centers[43] - The Company’s buildings and improvements increased to $3,411,249,000 as of September 30, 2025, compared to $3,174,250,000 in 2024, marking a rise of 7.5%[56] Shareholder and Equity Information - The Company has an at-the-market equity issuance program with $238.7 million remaining available for future share issuance as of September 30, 2025[137] - The Company physically settled 11,172,699 shares under the ATM Program's forward in March 2025, receiving net proceeds of $277.9 million[139] - The Company has scheduled future minimum rental revenues of $1.96 billion under non-cancelable tenant leases with remaining terms greater than one year as of September 30, 2025[159] Debt and Financing - The company’s total indebtedness reached $1.86 billion as of September 30, 2025, compared to $1.54 billion as of December 31, 2024, reflecting an increase of 21%[87] - The Operating Partnership issued $100.0 million in senior unsecured notes, including $20.0 million at 5.86% due August 21, 2027, and $80.0 million at 5.94% due August 21, 2029[97] - The company entered into a $250 million incremental delayed draw term loan, of which $175 million was drawn at closing, with a maturity date of May 29, 2030[94] Segment Information - The Company has identified three reportable segments: REIT Portfolio, Investment Management, and Structured Financing, with net income as the key measure of segment profitability[167] - The REIT Portfolio segment consists primarily of high-quality core retail properties located in densely populated metropolitan areas[168]

Financial Data and Key Metrics Changes - The company reported same-store NOI growth of 8.2%, with street retail portfolio delivering 13% growth during the quarter [29][31] - The quarterly FFO increased by a penny to $0.29 compared to the previous quarter's $0.28, despite short-term dilution from the partial conversion of the City Point loan [36][37] - The company expects total same-store growth of 6%-7% in Q4, aiming to achieve the upper end of the 5%-6% projection for the year [31][32] Business Line Data and Key Metrics Changes - The leasing team executed $3.7 million in AVR during Q3, bringing total signed leases year-to-date to $11.4 million, ahead of last year's record pace [17][18] - The company added, expanded, or renewed leases with several high-demand brands, achieving an average GAAP spread of 36% in high-growth markets [19][20] - The company converted approximately $7 million of AVR from S&O to open and paying tenants during the quarter [18][19] Market Data and Key Metrics Changes - Sales for reporting tenants on the streets showed significant growth, with SoHo sales up 15%, Bleecker Street over 30%, and Gold Coast of Chicago over 40% [23][24] - Despite concerns in Washington, DC, sales on M Street increased by 16% year-over-year, indicating strong tenant demand [24] - The company noted a resurgence in foot traffic and energy in key markets, including San Francisco, driven by economic recovery and demographic trends [10][11] Company Strategy and Development Direction - The company aims to build Acadia Realty Trust into the premier owner-operator of street retail in the U.S., focusing on both internal and external growth opportunities [15][28] - The strategy includes maintaining a 5% plus annual growth rate through internal growth opportunities and accretive external acquisitions [7][12] - The company is confident in its ability to fund acquisitions and redevelopment projects, with a strong balance sheet and liquidity [30][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing economic recovery, particularly among affluent consumers, which is driving demand for street retail [49][50] - The company anticipates continued strong performance in its street retail portfolio, with several years of tailwinds expected [15][40] - Management acknowledged the importance of adapting to market conditions and maintaining flexibility in funding strategies [68][69] Other Important Information - The company plans to refine its FFO definition for 2026 to provide a clearer link between real estate growth and bottom-line earnings [30][38] - The company raised approximately $212 million of equity during the quarter to fund its acquisition pipeline and redevelopment projects [39][40] Q&A Session Summary Question: Can you lift the veil a little bit on the pipeline of acquisitions you're looking at? - The company indicated that the $500 million pipeline is a gross number, with specific conversations ongoing regarding potential deals [42][44] Question: Are you seeing no signs of slowing down in terms of tenant demand? - Management confirmed that the affluent consumer is driving recovery, leading to strong sales and profitability for retailers in key locations [48][49] Question: Could you go into some of the considerations of what would make you hit the 5% versus the 9% growth in 2026? - The company highlighted that achieving the higher end of growth depends on the speed of leasing and opening spaces, with confidence in reaching at least 5% [54][55] Question: What proportion of the mark-to-market opportunity has already been addressed? - Management noted significant sales growth in key markets and indicated that the company has already addressed a portion of the mark-to-market opportunities [76] Question: Any sense what the split might look like on that $500 million pipeline between core and investment management deals? - The company refrained from providing specific numbers but emphasized a robust pipeline and the ability to fund all opportunities [81]

Financial Data and Key Metrics Changes - The company reported a same-store NOI growth of 8.2%, with the street retail portfolio delivering 13% growth during the quarter [27][28] - The quarterly FFO increased to $0.29 compared to $0.28 in the previous quarter, despite short-term dilution from the City Point loan conversion [34][35] - The company maintained its FFO guidance for 2026, moving to a simplified reporting metric that excludes investment management gains [36][37] Business Line Data and Key Metrics Changes - The company executed $3.7 million in new leases during the third quarter, bringing total signed leases year-to-date to $11.4 million [16][21] - The average GAAP spread for new and renewal leases was 32%, with a notable 36% spread in high-growth markets [16][18] - The leasing pipeline increased to $8 million, indicating strong tenant demand and leasing velocity [16][21] Market Data and Key Metrics Changes - Sales in SoHo increased by 15%, Bleecker Street by over 30%, and the Gold Coast of Chicago by over 40% year-to-date [21][22] - Despite concerns in Washington, DC, sales on M Street rose by 16% year-over-year, showcasing resilience in urban markets [22] - The company noted a resurgence in foot traffic and consumer spending, particularly among affluent consumers, driving demand for street retail [6][9] Company Strategy and Development Direction - The company aims to become the premier owner-operator of street retail in the U.S., focusing on internal growth and external acquisitions [12][13] - The strategy includes enhancing the leasing portfolio in key urban markets and capitalizing on the demand for direct-to-consumer retail locations [6][12] - The company is confident in its ability to invest accretively despite rising costs of capital, leveraging its reputation as a buyer of choice in the street retail space [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing recovery in consumer spending, particularly among affluent consumers, which is expected to continue driving demand for retail space [46][47] - The company anticipates achieving 10% REIT portfolio NOI growth in 2026, supported by strong internal growth and a robust acquisition pipeline [33][38] - Management acknowledged the importance of adapting to market conditions and maintaining flexibility in funding strategies to support growth initiatives [64][66] Other Important Information - The company has raised approximately $212 million in equity to fund its acquisition pipeline and redevelopment projects [38] - The investment management platform is seeing increased interest from institutional investors, indicating a strong demand for retail assets [70] - The company is focused on simplifying its financial reporting to provide clearer insights into its core operating results [27][36] Q&A Session Summary Question: Can you provide details on the acquisition pipeline? - Management indicated that the $500 million pipeline is gross and includes specific negotiations, with a focus on street retail opportunities [56][57] Question: Are you seeing signs of slowing tenant demand? - Management confirmed strong tenant demand, driven by affluent consumers and the shift towards direct-to-consumer retail strategies [46][47] Question: What factors will influence the 5% to 9% same-store growth range in 2026? - Management highlighted that achieving the higher end of the range depends on the speed of leasing and market conditions, with confidence in surpassing 5% growth [51] Question: How is the company managing its balance sheet for future investments? - Management emphasized maintaining a pro-rata debt to EBITDA ratio and leveraging both equity and debt markets to fund acquisitions [64][66] Question: What is the level of demand from institutional partners for the investment management platform? - Management reported broad demand from institutional investors seeking retail opportunities, indicating a strong interest in partnering [70]

Group 1: Financial Performance - Acadia Realty Trust reported quarterly funds from operations (FFO) of $0.33 per share, matching the Zacks Consensus Estimate and showing an increase from $0.32 per share a year ago [1] - The company posted revenues of $101.01 million for the quarter ended September 2025, which was 2.32% below the Zacks Consensus Estimate, compared to $87.75 million in the same quarter last year [2] - The current consensus FFO estimate for the upcoming quarter is $0.34 on revenues of $108 million, and for the current fiscal year, it is $1.33 on revenues of $405.6 million [7] Group 2: Market Performance and Outlook - Acadia Realty Trust shares have declined approximately 17.9% since the beginning of the year, contrasting with the S&P 500's gain of 16.9% [3] - The estimate revisions trend for Acadia Realty Trust was unfavorable prior to the earnings release, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] - The outlook for the REIT and Equity Trust - Retail industry is currently in the top 38% of Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Financial Performance - Total revenues for Q3 2025 were $101,006,000, with rental income contributing $98,714,000, representing a year-to-date total of $305,992,000[15] - The company reported a net loss of $10,955,000 for Q3 2025, with a year-to-date net loss of $43,554,000[15] - Operating income for Q3 2025 was $12,684,000, while year-to-date operating income stood at $28,768,000[15] - The company incurred total expenses of $90,837,000 in Q3 2025, leading to a total year-to-date expense of $279,739,000[15] - The company’s interest expense for Q3 2025 was $24,304,000, with a year-to-date interest expense of $71,155,000[15] - The company reported a gain on the disposition of properties amounting to $2,515,000 for Q3 2025[15] - Total revenues for the quarter ended September 30, 2025, were $95,955,000, representing a year-to-date total of $285,144,000[16] - Net operating income from properties for the quarter was $67,536,000, with a year-to-date total of $195,826,000[16] - The net income attributable to Acadia shareholders for the quarter was $5,618,000, with a year-to-date total of $9,189,000[16] - The company reported a realized gain of $4,355,000 in Q3 2025, compared to $2,923,000 in Q3 2024, indicating a significant increase in realized gains[26] - EBITDA for Q3 2025 was $59,930,000, up 15.5% from $51,709,000 in Q3 2024; year-to-date EBITDA increased to $175,027,000 from $152,997,000, a rise of 14.5%[26] - Funds from operations (FFO) for the quarter ended September 30, 2025, reached $44,583,000, compared to $38,074,000 in the previous quarter[24] - Adjusted funds from operations (AFFO) for the year to date is $103,807,000, with a diluted AFFO per common share of $0.75[24] Market Capitalization and Debt - The total market capitalization as of September 30, 2025, was $4,228,296,000, with equity capitalization accounting for 65% and debt capitalization for 35%[9] - The company’s total debt capitalization was $1,478,304,000, reflecting a pro-rata share of investment management debt[9] - The company’s pro-rata debt stands at $1,167,208,000, reflecting its share of liabilities across various investment vehicles[40] - Net Debt as of September 30, 2025, was $1,167,530,000, compared to $1,153,635,000 in 2024, indicating a slight increase[44] - The Debt/EBITDA ratio improved to 5.0x in 2025 from 5.6x in 2024, reflecting better leverage management[44] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $4,875,192,000[18] - Total liabilities were reported at $2,210,078,000, with redeemable noncontrolling interests of $9,114,000[18] - The company reported a total equity of $2,656,000,000, with Acadia shareholders' equity at $2,246,020,000[18] - Total assets amount to $917,944,000, with corporate assets net at $488,000[21] - Total liabilities stand at $636,931,000, including accounts payable and other liabilities of $49,062,000[21] Occupancy and Leasing - The physical occupancy rate at the end of Q3 2025 was 93.5%, up from 91.9% in Q3 2024; leased occupancy was 94.4%, slightly down from 95.0%[28] - Total Gross Leasable Area (GLA) across the properties is 577,005 square feet with an overall occupancy rate of 87.4%[63] - The annualized base rent (ABR) for the portfolio is $28,132,520, averaging $56.31 per square foot[63] - The total Gross Leasable Area (GLA) for Acadia's core portfolio is 1,430,989 square feet with an in-place occupancy rate of 89.1%[65] - The overall leased occupancy rate for Acadia's properties stands at 89.1%, with in-place occupancy at 97.1%[66] - The total number of leases expiring by 2034 amount to 928,773 square feet, representing 100% of the total GLA, with an average base rent of $103.33 per square foot[71] Capital Expenditures and Development - Total capital expenditures for the year to date as of September 30, 2025, are $33,139,000, compared to $20,743,000 for the same period in 2024[77] - The company has a total of 1,000,000 square feet under development and redevelopment, with significant projects including 176,000 square feet at 1 Henderson Avenue, Dallas, TX, expected to stabilize in 2027/2028[96] - Total estimated costs for development and redevelopment projects amount to $420 million, with $126 million incurred to date[96] Funds and Investments - Fund V has a total size of $520.0 million, contributing to a total fund size of $2,035.1 million across all funds[78] - Cumulative contributions across all funds amount to $2,000.4 million, with cumulative net distributions totaling $1,180.4 million, resulting in a net distribution to contributions ratio of 59.0%[78] - The company acquired an 18% interest in Fund II for approximately $54.4 million, increasing its ownership from 61.67% to 80%[80] - The company’s preferred return rates range from 6.0% to 8.0% across different funds[78] Tenant and Property Information - The portfolio includes key tenants such as Lululemon, Verizon, and Sephora, indicating strong market presence[64] - The top tenant, Target, occupies 408,895 square feet across 3 stores, contributing an ABR of $8,323,009, which is 6.9% of the total GLA[69] - The second-largest tenant, J. Crew Group, has 6 stores with a combined GLA of 34,902 square feet and an ABR of $5,656,274, representing 0.6% of the total GLA[69] Financial Guidance - The company revised its 2025 guidance for net earnings per share attributable to common shareholders to a range of $0.12-$0.14, up from the prior range of $0.09-$0.13[37] - NAREIT Funds from operations per share attributable to common shareholders and common OP unit holders is now projected at $1.20-$1.22, compared to the previous guidance of $1.22-$1.26[37]

Core Points - Acadia Realty Trust will release its third quarter 2025 earnings after market close on October 28, 2025 [1] - A conference call to review the earnings and operating results will be held on October 29, 2025, at 12:00 PM ET [1] - Participant registration and webcast information for the conference call is provided [1]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents Acadia Realty Trust's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, changes in equity, and cash flows, with detailed notes on accounting policies and financial activities [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$4.88 billion** from **$4.37 billion**, driven by real estate investments, while total liabilities rose to **$2.15 billion** from **$1.84 billion**, and total equity grew to **$2.71 billion** from **$2.50 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Net investments in real estate | $4,116,002 | $3,673,593 | | Total assets | $4,875,569 | $4,371,203 | | **Liabilities** | | | | Mortgage and other notes payable, net | $1,007,588 | $953,700 | | Unsecured notes payable, net | $743,049 | $569,566 | | Total liabilities | $2,148,236 | $1,838,931 | | **Equity** | | | | Total Acadia shareholders' equity | $2,269,126 | $2,065,672 | | Total equity | $2,706,159 | $2,501,689 | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net loss of **$32.6 million** for the six months ended June 30, 2025, primarily due to a **$24.6 million** impairment charge and a **$9.6 million** loss on change in control, despite a **14.8%** increase in total revenues to **$205.0 million** Statement of Operations Summary (in thousands, except per share data) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenues | $204,986 | $178,610 | | Impairment charges | $24,640 | $0 | | Loss on change in control | $9,622 | $0 | | Net (loss) income | $(32,599) | $(5,275) | | Net income attributable to Acadia shareholders | $3,571 | $4,712 | | Diluted income per share | $0.02 | $0.04 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased to **$90.7 million** from **$58.0 million**, while net cash used in investing activities was **$394.7 million** due to real estate acquisitions, and net cash provided by financing activities was **$332.1 million** Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $90,700 | $58,019 | | Net cash (used in) provided by investing activities | $(394,699) | $19,976 | | Net cash provided by (used in) financing activities | $332,105 | $(48,235) | | Increase in cash and cash equivalents and restricted cash | $28,106 | $29,760 | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) These notes detail the company's accounting policies and activities, highlighting significant acquisitions, debt facility updates including a new **$250 million** term loan, derivative instruments, and segment performance breakdowns - The company operates through two main platforms: the Core Portfolio (**167 properties**) and the Investment Management platform (**51 properties**), including several opportunity funds[36](index=36&type=chunk)[37](index=37&type=chunk) - During the six months ended June 30, 2025, the company acquired **seven properties** and increased its stake in another for a total purchase price of **$551.5 million**[54](index=54&type=chunk) - On January 23, 2025, the company acquired an additional **48%** interest in the Renaissance Portfolio, increasing its stake to **68%** and resulting in a **$9.6 million** loss on change in control[55](index=55&type=chunk) - Total consolidated indebtedness was **$1.81 billion** as of June 30, 2025, up from **$1.55 billion** at year-end 2024, with a new **$250 million** term loan added to its credit facility[82](index=82&type=chunk)[89](index=89&type=chunk) - In March 2025, the company settled **11.2 million** forward shares under its ATM program, receiving net proceeds of **$277.9 million**, with **2.4 million** forward shares remaining outstanding as of June 30, 2025[130](index=130&type=chunk)[129](index=129&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=61&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's performance, strategic priorities, and financial condition, highlighting **$423.7 million** in accretive acquisitions, **4.1%** same-property NOI growth, and balance sheet strengthening through a credit facility amendment, alongside operational results, liquidity, and non-GAAP measures - Strategic priorities include maximizing internal growth, executing accretive acquisitions, advancing development projects, scaling investment management, and maintaining financial flexibility[193](index=193&type=chunk) - Year-to-date acquisitions totaled approximately **$423.7 million** in the Core and Investment Management portfolios, focusing on high-quality street retail in key urban corridors[193](index=193&type=chunk) - The Core Portfolio achieved **4.1%** same-property NOI growth for the six months ended June 30, 2025[193](index=193&type=chunk)[243](index=243&type=chunk) - The company amended its credit facility, establishing a new **$250.0 million** term loan (of which **$175.0 million** was drawn) and increasing the accordion feature to **$1.5 billion**[200](index=200&type=chunk) Funds from Operations (FFO) (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income attributable to Acadia shareholders | $3,571 | $4,712 | | Adjustments (Depreciation, Impairment, etc.) | $78,754 | $54,428 | | FFO attributable to Common Shareholders and Common OP Unit holders | $82,657 | $59,446 | [Results of Operations](index=67&type=section&id=Results%20of%20Operations) Total net income attributable to Acadia shareholders decreased to **$3.6 million** from **$4.7 million**, with Core Portfolio net income increasing by **$3.8 million** offset by a **$9.6 million** loss on change in control, and Investment Management net income decreasing by **$4.0 million** due to a **$24.6 million** impairment charge Net Income (Loss) Attributable to Acadia Shareholders by Segment (in millions) | Segment | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Core Portfolio | $13.7 | $9.9 | $3.8 | | Investment Management | $0.7 | $4.7 | $(4.0) | | Structured Financing | $12.6 | $10.3 | $2.3 | | Unallocated | $(23.5) | $(20.1) | $(3.4) | | **Total** | **$3.6** | **$4.7** | **$(1.1)** | - Core Portfolio rental revenue increased by **$24.9 million**, driven by new acquisitions (**$8.6 million**), a termination fee from Whole Foods (**$8.4 million**), and the consolidation of the Renaissance Portfolio (**$6.5 million**)[224](index=224&type=chunk) - Investment Management recognized impairment charges of **$24.6 million** due to shortened hold periods for one Fund III and one Fund IV property[233](index=233&type=chunk) [Liquidity and Capital Resources](index=76&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity sources include equity/debt issuances, property sales, and operating cash flow, with **$42.8 million** cash and **$471.5 million** credit facility capacity, while total consolidated debt stood at **$1.81 billion** with **75.1%** fixed-rate - Primary sources of liquidity include equity/debt issuances, property sales, repayments of structured financing, liquidation of marketable securities, and cash flow from operations[261](index=261&type=chunk) - As of June 30, 2025, total consolidated indebtedness was **$1.81 billion**, with **75.1%** fixed or effectively fixed at a weighted average interest rate of **4.92%**[258](index=258&type=chunk) - The company has **$443.7 million** remaining available under its **$500.0 million** ATM Program, with **2.4 million** forward shares outstanding yielding **$55.5 million** upon settlement as of June 30, 2025[128](index=128&type=chunk)[204](index=204&type=chunk)[263](index=263&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=83&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate risk on its **$1.81 billion** debt, with **75.1%** fixed, where a **100 basis point** increase in rates would raise annual interest expense by **$4.5 million** on **$451.9 million** of variable-rate debt - As of June 30, 2025, **75.1%** of the company's **$1.81 billion** debt was fixed-rate or effectively fixed through derivative instruments[282](index=282&type=chunk) - A **100 basis point** increase in interest rates would increase annual interest expense on the **$451.9 million** of variable-rate debt by approximately **$4.5 million**[284](index=284&type=chunk) - The fair value of total consolidated debt would decrease by approximately **$11.5 million** if interest rates increased by **1%**[285](index=285&type=chunk) [Controls and Procedures](index=86&type=section&id=Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025[291](index=291&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[292](index=292&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=87&type=section&id=Item%201.%20Legal%20Proceedings) The company is party to various legal proceedings incidental to its business but does not expect them to have a material adverse effect on its financial position - The company does not expect any outstanding legal proceedings to have a material adverse effect on its consolidated financial position[293](index=293&type=chunk) [Risk Factors](index=87&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024, were reported - No material changes to risk factors were reported since the 2024 Annual Report on Form 10-K[294](index=294&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=87&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the period - None[295](index=295&type=chunk) [Other Information](index=87&type=section&id=Item%205.%20Other%20Information) No officers or trustees adopted, terminated, or modified any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025 - No officers or trustees adopted, terminated, or modified any Rule 10b5-1 trading plans during the quarter[298](index=298&type=chunk) [Exhibits](index=88&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Third Amendment to the Credit Agreement and various officer certifications required by the Sarbanes-Oxley Act - Key exhibits filed include the Third Amendment to the Third Amended and Restated Credit Agreement and certifications from the CEO and CFO[300](index=300&type=chunk)