Financial Data and Key Metrics Changes - The company reported NAREIT FFO of $0.27 per share, representing an 8% increase over the $0.25 reported in 2024, with projected year-over-year NAREIT FFO growth of about 10% at the midpoint of guidance [43][39] - Same store NOI growth is expected to be between 5% to 6% for the year, with total core occupancy increasing by 50 basis points to 92.2% [44][39] - The company has over $600 million of available liquidity, with net debt to EBITDA at 5.5 times [52] Business Line Data and Key Metrics Changes - The company completed nearly $160 million in acquisitions during the quarter, focusing on core pillars of external growth [30] - The leasing activity in the street retail portfolio has shown strong momentum, with approximately $7.5 million of new leases executed in 2025, nearly 100% increase over the $3.8 million executed during the comparable period in 2024 [41][39] - The active leasing pipeline now stands at over $7 million in leases in advanced negotiation, with a significant portion coming from high-growth streets [21][39] Market Data and Key Metrics Changes - The company noted that reported comp sales have increased double digits both quarter over quarter and year over year, with year-over-year growth on the majority of their streets well north of 20% [20] - The company is seeing strong demand from affluent consumers, which is reflected in the performance of their street retail portfolio [11][12] Company Strategy and Development Direction - The company aims to build Acadia into the premier owner-operator of street retail in the U.S., focusing on strong contractual growth and frequent accretive mark-to-market opportunities [12][13] - The strategy includes maintaining a solid balance sheet with liquidity and flexibility to drive both internal and external growth [17][16] - The company is focused on acquiring properties in key markets where they can derive benefits of scale [30][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about avoiding serious economic headwinds despite concerns about tariffs and consumer spending [56] - The company is confident in its ability to continue delivering NOI growth in excess of 5% for the next several years, supported by a strong pipeline of external growth opportunities [39][52] - Management highlighted the resilience of the consumer and the ongoing demand for street retail, which is expected to drive future growth [9][11] Other Important Information - The company raised over $800 million prior to the last quarter, providing flexibility for growth [17] - The debt markets remain strong, with the company executing a new five-year $250 million term loan to reduce borrowing costs [52] Q&A Session Summary Question: Disconnect between stock performance and portfolio health - Management noted that leasing is holding up well and that the market may be underestimating the secular tailwinds in street retail [55][56] Question: Comparison of landlord scale in suburban vs. street retail - Management highlighted significant benefits of scale in street retail, allowing for higher rents and better tenant relationships compared to suburban shopping centers [58][59] Question: Mark-to-market opportunities in Williamsburg - Management indicated that there are 20% plus mark-to-market opportunities in Williamsburg and other key markets, with a focus on controlling a meaningful portion of a given street [62][66] Question: Changes in the transaction market for street retail assets - Management observed an increase in seller interest in the market, with more sellers willing to engage due to strong fundamentals [70] Question: Pipeline for investment management deals - Management confirmed that large deals are available in the market, and they are actively underwriting several of those opportunities [72] Question: Performance of suburban assets - Management stated that high-quality suburban retail is holding up well, with strong tenant demand filling watch list items [76] Question: Future occupancy expectations - Management expects street and urban retail occupancy to trend towards 92% by the end of the year [80] Question: Incremental NOI growth expectations - Management projected total incremental NOI of $8.5 million in 2026, with a significant portion coming from the same store pool [82]

Financial Data and Key Metrics Changes - The company reported NAREIT FFO of $0.27 per share, representing an 8% increase over the $0.25 reported in 2024, with projected year-over-year NAREIT FFO growth of about 10% at the midpoint of guidance [40][37] - The total core occupancy increased by 50 basis points to 92.2%, with expectations to further increase occupancy to 94% to 95% by year-end [41][37] - The company anticipates same store NOI growth of 5% to 6% for the year, with a potential acceleration of 200 to 300 basis points as below-market spaces are reclaimed [41][37] Business Line Data and Key Metrics Changes - The company completed nearly $160 million in acquisitions during the quarter, focusing on core pillars of external growth, including FFO and NAV accretion [29][30] - The leasing activity in the street retail portfolio has shown significant momentum, with approximately $7.5 million of new leases executed in 2025, nearly 100% higher than the $3.8 million executed during the same period in 2024 [39][37] - The active leasing pipeline now stands at over $7 million, with a significant portion coming from high-growth streets [21][39] Market Data and Key Metrics Changes - The company noted that reported comp sales have increased double digits both quarter-over-quarter and year-over-year, with year-over-year growth on the majority of its streets well north of 20% [20][18] - The company is seeing strong demand from affluent consumers, which is reflected in the performance of its street retail portfolio [11][12] - The competitive landscape for street retail assets remains favorable, with institutional investor interest strong, but the market for street retail is less crowded compared to other segments [67][66] Company Strategy and Development Direction - The company aims to build Acadia into the premier owner-operator of street retail in the U.S., focusing on strong contractual growth and frequent accretive mark-to-market opportunities [12][13] - The strategy includes maintaining a solid balance sheet with liquidity and flexibility to drive both internal and external growth [16][15] - The company is focused on acquiring properties in key markets where it can achieve economies of scale and drive higher rents [30][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about avoiding serious economic headwinds despite concerns about tariffs and consumer spending [54][53] - The company is confident in its leasing fundamentals and the secular tailwinds in street retail, including the migration from wholesale to direct-to-consumer models [54][53] - The management highlighted the strength of the balance sheet and the ability to fund growth opportunities, projecting continued NOI growth in excess of 5% for the next several years [37][16] Other Important Information - The company raised over $800 million prior to the last quarter, providing flexibility for growth [16] - The debt markets remain strong, with a new five-year $250 million term loan executed to reduce borrowing costs [49][50] - The company has approximately $600 million of available liquidity, with net debt to EBITDA at 5.5 times [49][50] Q&A Session Summary Question: Disconnect between stock performance and portfolio health - Management noted that leasing activities are holding up well and that the market may be underestimating the secular tailwinds in street retail [53][54] Question: Comparison of landlord scale in suburban vs. street retail - Management highlighted significant benefits of scale in street retail, allowing for higher rents and better tenant relationships compared to suburban shopping centers [56][58] Question: Mark-to-market opportunities in Williamsburg - Management indicated that there are 20% plus mark-to-market opportunities in Williamsburg and other key markets, driven by strong tenant demand [63][64] Question: Changes in the transaction market for street retail assets - Management observed an increase in seller interest in the market, with more sellers willing to engage due to improved fundamentals [66][67] Question: Pipeline for investment management deals - Management confirmed that large-scale investment management deals are being underwritten, with a focus on disciplined execution [69][70] Question: Performance of suburban assets - Management noted that high-quality suburban retail is holding up well, although growth is not as strong as in street retail [73][74]

Group 1 - Acadia Realty Trust reported quarterly funds from operations (FFO) of $0.32 per share, missing the Zacks Consensus Estimate of $0.33 per share, but showing an increase from $0.31 per share a year ago, resulting in an FFO surprise of -3.03% [1] - The company posted revenues of $100.59 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.17%, compared to year-ago revenues of $87.25 million, and has topped consensus revenue estimates three times over the last four quarters [2] - The stock has underperformed the market, losing about 23% since the beginning of the year, while the S&P 500 gained 8.6% [3] Group 2 - The current consensus FFO estimate for the coming quarter is $0.34 on revenues of $101.2 million, and for the current fiscal year, it is $1.36 on revenues of $399.8 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Retail is currently in the top 38% of over 250 Zacks industries, indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Business Overview - Acadia Realty Trust (AKR) operates with a dual platform strategy, focusing on a Core Portfolio and an Investment Management platform [6] - The Core Portfolio represents approximately 85% of AKR's Net Asset Value (NAV), amounting to around $3.5 billion in Assets Under Management (AUM) [9] - The Investment Management platform accounts for 15% of AKR's NAV, with approximately $2.5 billion in AUM [11] Portfolio Composition and Growth - Approximately 60% of the Core Portfolio is concentrated in key high-growth street retail corridors [18] - The company projects Core Internal Net Operating Income (NOI) growth of $30-$40 million, inclusive of 2024 and year-to-date 2025 acquisitions [20] - Recent street acquisitions of approximately $438 million are projected to grow in excess of 7% annually [20] Financial Performance and Guidance - The company's 2025 Funds From Operations (FFO) guidance midpoint is $1.36, representing a 5.5% growth [25] - The company's 2024 FFO was $1.28, reflecting 4.9% growth over the company's 2023 FFO of $1.22 [25] Strategic Acquisitions - The company completed approximately $816 million in acquisitions during 3Q24 and year-to-date 2025 [80] - Core acquisitions accounted for $439 million, while Investment Management acquisitions totaled $377 million [81] Balance Sheet - The company raised approximately $800 million in common equity in 2024 and year-to-date 2025 [63] - The company reduced pro-rata Debt/EBITDA for the Core and Investment Management platform to 5.7x [63]

Company Overview - Acadia Realty Trust (NYSE: AKR) owns retail properties in prime locations across the U.S., including New York City's SoHo, West Village, Williamsburg, and the Flatiron District [1] Investment Strategy - The equity market serves as a mechanism for wealth creation or destruction over the long term, with Pacifica Yield focusing on long-term wealth creation through investments in undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Group 1 - Acadia Realty Trust (AKR) is experiencing significant attention from investors due to high implied volatility in the options market, particularly the Jun 20, 2025 $35 Call option [1] - Implied volatility indicates market expectations for future stock movement, suggesting potential upcoming events that could lead to substantial price changes [2] - Analysts currently rate Acadia Realty Trust as a Zacks Rank 3 (Hold) within the REIT and Equity Trust - Retail industry, which is in the top 36% of the Zacks Industry Rank [3] Group 2 - Over the past 30 days, one analyst has raised the earnings estimate for Acadia Realty Trust for the current quarter from 32 cents per share to 33 cents, with no downward revisions [3] - The high implied volatility may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4]

Financial Performance - Total revenues for the three months ended March 31, 2025, increased to $104.394 million, up 14.4% from $91.356 million in the same period of 2024[19] - Rental revenues rose to $102.640 million, a 19.3% increase compared to $86.037 million in Q1 2024[19] - Net loss for the three months ended March 31, 2025, was $11.657 million, compared to a net loss of $6.857 million in Q1 2024[23] - Operating income for Q1 2025 was $15.324 million, slightly up from $14.008 million in the same quarter of 2024[19] - Basic income per share for Q1 2025 was $0.01, down from $0.03 in Q1 2024[19] - Total expenses for Q1 2025 were $89.070 million, reflecting a 16.9% increase from $76.150 million in Q1 2024[19] - Comprehensive loss for Q1 2025 totaled $25.846 million, compared to a comprehensive income of $10.129 million in Q1 2024[23] - Net income attributable to Acadia shareholders for Q1 2025 was $1.608 million, down from $3.269 million in Q1 2024[19] Assets and Liabilities - Total assets as of March 31, 2025, were $4.736 billion, an increase of 8.3% from $4.371 billion at the end of 2024[17] - Total liabilities increased to $1.947 billion as of March 31, 2025, compared to $1.839 billion at the end of 2024, reflecting a rise of 5.9%[17] - The company reported cash and cash equivalents of $31.984 million as of March 31, 2025, a significant increase from $16.806 million at the end of 2024[17] - The company’s equity attributable to Acadia shareholders increased to $2.298 billion as of March 31, 2025, compared to $2.066 billion at the end of 2024, marking a growth of 11.2%[17] Real Estate Acquisitions and Investments - Acquisitions of real estate in Q1 2025 amounted to $192.222 million, with no acquisitions reported in Q1 2024[26] - The Company acquired retail properties totaling $394.5 million during the three months ended March 31, 2025, including a 100% acquisition of 106 Spring Street and 73 Wooster Street in New York, and an additional 48% interest in the Renaissance Portfolio for $117.9 million[44][45] - The Company reported a total of $3,895.2 million in operating real estate, net of accumulated depreciation, as of March 31, 2025, compared to $3,544.0 million at the end of 2024, indicating a growth of 9.9%[43] - The Company has ownership interests in 161 properties within its Core Portfolio, with a total net investment in real estate of $4,037.3 million, up from $3,673.6 million as of December 31, 2024, representing a 9.9% increase[43] Cash Flow and Financing - Total cash provided by operating activities for Q1 2025 was $25.893 million, slightly down from $25.988 million in Q1 2024[26] - Proceeds from unsecured debt in Q1 2025 were $300.200 million, a significant increase compared to $31.750 million in Q1 2024[26] - Cash paid for interest during Q1 2025 was $27.899 million, down from $31.612 million in Q1 2024[28] - The company has a Term Loan with an outstanding balance of $400.0 million, bearing interest at SOFR + 1.50%, maturing on April 15, 2028[78] Impairment and Losses - The company reported impairment charges of $6.450 million in Q1 2025, with no such charges reported in Q1 2024[19] - 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, consolidating it into the Core Portfolio[56] - The company's share of equity in net losses of unconsolidated affiliates was $1,615,000 for the three months ended March 31, 2025, compared to a loss of $68,000 in 2024, indicating a significant increase in losses[65] Shareholder Distributions - Total dividends/distributions declared in Q1 2025 were $27.635 million, up from $19.898 million in Q1 2024, reflecting a year-over-year increase of approximately 39%[28] - The Company declared distributions of $0.20 per Common Share/OP Unit for the three months ended March 31, 2025, compared to $0.18 for the same period in 2024[117] Other Financial Metrics - The company recognized a gain on extinguishment of debt of $971,000 for the three months ended March 31, 2025, compared to $1,158,000 in the same period of 2024[65] - The total investments in and advances to unconsolidated affiliates decreased from $209.23 million as of December 31, 2024, to $177.97 million as of March 31, 2025[56] - The estimated fair value of the company's mortgage and other notes payable was $1,052.55 million as of March 31, 2025[102]

Company Overview - Acadia Realty Trust (AKR) is a real estate investment trust headquartered in Rye, operating in the Finance sector [3] - The stock has experienced a price decline of 19.12% since the beginning of the year [3] Dividend Information - Acadia Realty Trust currently pays a dividend of $0.20 per share, resulting in a dividend yield of 4.09% [3] - The industry average yield for REIT and Equity Trust - Retail is 4.41%, while the S&P 500 yield is 1.64% [3] - The annualized dividend of $0.80 represents an 8.1% increase from the previous year [4] - Over the last 5 years, the company has increased its dividend twice year-over-year, averaging a 6.36% annual increase [4] - The current payout ratio is 59%, indicating that 59% of its trailing 12-month earnings per share (EPS) is distributed as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate predicts earnings of $1.36 per share, reflecting a year-over-year growth rate of 6.25% [5] Investment Appeal - Acadia Realty Trust is viewed as an attractive dividend investment and a compelling opportunity, holding a Zacks Rank of 2 (Buy) [7]

Financial Data and Key Metrics Changes - The company reported first quarter earnings of $0.34 per share, which includes $0.06 from Whole Foods related to rents and recoveries, as well as termination payments [44][46] - Same store NOI growth was reported at 4.1%, with the Street retail portion growing 6.8% for the quarter, outperforming suburban assets by over 400 basis points [52][53] - The company achieved a core operating signed not yet open pipeline increase of over 15%, with new leases signed at cash spreads exceeding 50% [41][48] Business Line Data and Key Metrics Changes - The Street retail segment continued to show strong performance, with double-digit sales growth observed in key markets such as SoHo and M Street [21][24] - The company signed new core leases totaling over $5 million in ABR, with 95% of that income coming from street locations [20] - The leasing velocity and signed not yet open pipeline are both accelerating, with a robust pipeline of over $6 million in additional leases in advanced stages of negotiation [21][48] Market Data and Key Metrics Changes - Consumer spending has remained resilient, particularly among affluent consumers, with sales growth reported at 15% year-over-year in the Georgetown portfolio [12][24] - The company noted that the affluent consumer demographic is less affected by broader economic indicators, maintaining spending habits despite economic uncertainties [12][22] - The company is seeing increased traction in markets that have been slower to recover, such as San Francisco, with significant leasing activity reported [28][30] Company Strategy and Development Direction - The company aims to be a dominant owner-operator of street retail in key corridors, focusing on acquisitions that are accretive to earnings and enhance the portfolio [14][39] - The strategy includes opportunistically adding assets through its investment management platform, leveraging institutional capital relationships [14][39] - The company is well-positioned to navigate market volatility and capitalize on potential buying opportunities in street retail investments [16][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued internal growth driven by strong tenant demand and limited new supply in high-quality locations [5][13] - The company is monitoring inflationary pressures and economic slowdowns but believes that strong demand will mitigate long-term declines [10][12] - Management remains optimistic about achieving 5% to 6% full-year same store NOI growth, supported by a solid balance sheet and liquidity [53][54] Other Important Information - The company completed over $370 million in acquisitions year-to-date, including targeted street retail acquisitions and value-add opportunities [32][34] - The balance sheet remains strong, with a debt to EBITDA ratio of 5.7 times, allowing for continued investment in growth opportunities [54] - The company has a robust pipeline of pending deals and active negotiations, indicating strong future growth potential [49][50] Q&A Session Summary Question: Will the signed not yet open (SNO) continue to accelerate and exceed 6% of ABR by year-end 2025? - Management indicated that they expect continued growth in the SNO pipeline, with $3 million expected to roll into the second half of the year [58] Question: Can you discuss opportunistic investing during downturns and the types of sellers? - Management noted that sellers could include institutional investors seeking liquidity or different operating partners, but it is too early to predict specific outcomes [60][62] Question: How has the Street portfolio changed post-COVID in terms of tenant types? - Management highlighted a shift towards healthier retailers, including digitally native brands, replacing legacy retailers, contributing to sustained demand and growth [66] Question: How confident is the company in achieving 10% underlying growth in the Street portfolio? - Management expressed confidence, noting that the majority of the signed not yet open pipeline is from the Street segment, which is expected to drive growth [70] Question: What is the current state of the street retail transaction market? - Management observed a potential reduction in competition as some buyers may pull back, but they remain prepared to capitalize on opportunities [78] Question: How are leasing spreads trending through the balance of the year? - Management indicated that while spreads may vary, they believe their leases are well-positioned relative to the market [81]

Financial Data and Key Metrics Changes - The company reported first quarter earnings of $0.34 per share, which includes $0.06 from Whole Foods related to rents and recoveries, as well as termination payments [41] - Same store NOI growth was reported at 4.1%, with the Street retail portion growing 6.8% for the quarter, outperforming suburban assets by over 400 basis points [49][38] - The company achieved a debt to EBITDA ratio of 5.7 times for the quarter, remaining within the targeted range of 5.5 to 6 times [50] Business Line Data and Key Metrics Changes - The Street retail segment continued to show strong performance, with a signed not yet open pipeline increasing by over 15% to approximately $9 million of ABR [44] - New core leases signed totaled over $5 million in ABR, with 95% of that income coming from street locations [19] - The company closed over $370 million in acquisitions year to date, including targeted street retail acquisitions [30] Market Data and Key Metrics Changes - Consumer spending remained resilient, particularly among affluent consumers, with double-digit sales growth observed in key street markets [20][12] - Apparel sales in the Georgetown portfolio were up 15% year over year, while sales in the Armitage Avenue portfolio increased by 12% [23][24] - The company noted that the affluent consumer demographic has proven resilient to price increases driven by inflation or tariffs [21] Company Strategy and Development Direction - The company aims to be a dominant owner-operator of street retail in key corridors, focusing on acquisitions that are accretive to earnings and enhance the portfolio [14] - The strategy includes opportunistically adding assets through the investment management platform, leveraging institutional capital relationships [15] - The company is positioned to take advantage of market disruptions, with a focus on motivated sellers and off-market transactions [34][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued internal growth driven by strong tenant demand and limited new supply in key markets [6][13] - The company is monitoring inflationary pressures and economic slowdowns but believes that strong demand will mitigate long-term declines [10][12] - Management remains optimistic about achieving 5% to 6% full-year same store NOI growth, supported by a robust pipeline of leasing deals [49][47] Other Important Information - The company has raised approximately $800 million last year and to date, providing liquidity to weather market volatility [16] - The company is actively engaged in several investment management opportunities, with expectations of increased activity in the current market environment [35] Q&A Session Summary Question: Will the signed not yet open (SNO) continue to accelerate and exceed 6% of ABR by year-end 2025? - Management indicated that they expect continued growth in SNO, with $3 million expected to roll into the second half of the year, maintaining optimism for replenishing that growth [54] Question: Can you discuss opportunistic investing during downturns and the typical sellers? - Management noted that sellers could include institutional investors seeking liquidity or different operating partners, but it is too early to predict specific outcomes [55][56] Question: What types of tenants went away post-COVID, and how does consumer demand look? - Management highlighted that there was not significant turnover, with many new leases signed with relevant brands, indicating strong consumer demand [62] Question: How confident is the company in achieving 10% underlying growth in the Street portfolio? - Management expressed confidence in achieving growth, particularly from the signed not yet open pipeline, which is primarily from the Street segment [67] Question: Has there been any change in the frequency of touchpoints with tenants post-April 2? - Management reported no noticeable change in leasing velocity or tenant responsiveness, with continued strong sales and demand [84]