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RYE, N.Y.--(BUSINESS WIRE)--Acadia Realty Trust (NYSE:AKR) ("Acadia†or the "Company†) today announced that David Buell will join the Company in January 2026 as its new Chief Accounting Officer succeeding Richard Hartmann. Mr. Buell brings more than 15 years of experience from another publicly traded real estate investment trust, where he held several leadership positions, including Chief Accounting Officer. Prior to this, Mr. Buell was a Senior Manager in KPMG's audit practice, serving clients. ...

Core Insights - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies Company Summaries - Acadia Realty Trust (AKR) is a self-managed equity REIT focused on the ownership, acquisition, redevelopment, and management of neighborhood and community shopping centers. The Zacks Consensus Estimate for its current year earnings has been revised 6% downward over the last 60 days [1] - Avantor (AVTR) is a global provider of mission-critical products and services to various industries, including biopharma, healthcare, education & government, and advanced technologies & applied materials. The Zacks Consensus Estimate for its current year earnings has been revised almost 5.3% downward over the last 60 days [2] - Carter's (CRI) is the largest marketer of branded apparel and related products for babies and young children in North America. The Zacks Consensus Estimate for its current year earnings has been revised almost 5.9% downward over the last 60 days [3]

Core Insights - Acadia Realty Trust (AKR) is highlighted for its high-quality street-level retail properties located in affluent urban markets, which are considered valuable assets for investment [2] Group 1: Investment Focus - The investment service iREIT+HOYA Capital emphasizes income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service targets dividend yields up to 10% across various income-focused portfolios, including REITs, ETFs, closed-end funds, and preferred stocks [2] Group 2: Analyst Position - The analyst has a beneficial long position in AKR shares, indicating confidence in the stock's performance [3] - The article expresses the analyst's personal opinions and is not influenced by compensation from any company mentioned [3] Group 3: General Information - The content serves as informational material and does not constitute financial advice, encouraging readers to conduct their own due diligence [4]

Core Insights - Acadia Realty Trust (AKR) is highlighted for its high-quality street-level retail properties located in affluent urban markets, which are considered valuable assets for investment [2]. Group 1: Investment Focus - The investment service iREIT+HOYA Capital emphasizes income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1]. - The service targets dividend yields up to 10% across various income-focused portfolios, including REITs, ETFs, closed-end funds, and preferred stocks [2]. Group 2: Analyst Position - The analyst has a beneficial long position in AKR shares, indicating confidence in the stock's performance [3]. - The article expresses the analyst's personal opinions and is not influenced by compensation from any company mentioned [3]. Group 3: General Information - The content serves informational purposes and does not constitute financial advice, encouraging readers to conduct their own due diligence [4]. - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect the platform's overall stance [5].

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]