Acadia Realty Trust(US:AKR)2025-10-29 20:16Financial 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]