Acadia Realty Trust (NYSE:AKR) Q4 2025 Earnings call February 11, 2026 11:00 AM ET Company ParticipantsA.J. Levine - SVPJohn Gottfried - CFOKenneth F. Bernstein - CEOReginald Livingston - SVPConference Call ParticipantsCraig Mailman - AnalystFloris van Djikum - AnalystLinda Yu Tsai - AnalystMichael Mueller - AnalystSamir Khanal - AnalystTodd Thomas - AnalystWilliam Debs - AnalystOperatorWelcome to the Acadia Realty Trust fourth quarter 2025 earnings conference call. At this time, all participants are on a l ...

Financial Data and Key Metrics Changes - The company reported same-property NOI growth of 6.3% for Q4 and 5.7% for the year, exceeding guidance [30] - Earnings per share for Q4 was $0.34, which included $0.03 from the sale of Albertsons shares, resulting in a clean run rate of $0.30 [30] - Economic occupancy increased by 30 basis points to 93.9%, with street and urban occupancy rising by 80 basis points in Q4 and 370 basis points over 2025 [31] Business Line Data and Key Metrics Changes - The company achieved over 90% economic shop occupancy, up from approximately 81% at the end of 2021 [8] - The street retail segment outperformed other segments, with significant rental growth captured through leasing strategies [7][8] - The company signed $3.5 million of ABR in Q4, with nearly 75% from high-growth markets [17] Market Data and Key Metrics Changes - Year-over-year sales growth for tenants ranged from 10% to as high as 30% to 40% in some markets [16] - The company signed 90,000 sq ft of leases in San Francisco, indicating a recovery in that market [21] - The company is seeing strong demand in key markets like SoHo, Gold Coast Chicago, and Melrose Place [19] Company Strategy and Development Direction - The company aims for multi-year NOI growth of 5%, with a focus on leasing up vacancies and capturing rental growth [8][9] - Investments of approximately $700 million over the past 24 months are aimed at enhancing scale in key corridors [11] - The company is transitioning its investment management model to focus on multiple JV channels, executing over $800 million in JV acquisitions [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the retail real estate sector, citing a fundamental shift benefiting open-air and street retail [5][6] - The company anticipates continued tenant demand and a robust pipeline of leases exceeding $9 million [20] - Management noted that while credit loss assumptions are conservative, the overall outlook remains positive for 2026 and beyond [35] Other Important Information - The company has a pro-rata debt to EBITDA ratio of about 5x and significant liquidity on credit facilities [38] - There are no material debt maturities in 2026, and the company is well-hedged against interest rate volatility [38] - The company is targeting a penny of FFO accretion for every $200 million of incremental gross asset value acquired [37] Q&A Session Summary Question: Can you expand on the acquisition environment and pricing perspective? - Management highlighted active markets including New York and D.C., noting that pricing is tricky due to rising rents and the potential for significant mark-to-market increases [44][46] Question: What are the main factors influencing same-property NOI growth guidance? - Management indicated that rent commencement dates, credit loss assumptions, and the pri-loose strategy are key factors affecting guidance [48] Question: How do you determine what to include in guidance versus lower probability outcomes? - Management stated that they set realistic goals and do not include assumptions that are outside their control, focusing on external growth for potential upside [52][56] Question: What is the target for street occupancy by year-end? - Management aims for 95% leased occupancy within 18 months, emphasizing the economic impact of high-value leases [64] Question: How have tariffs affected retailer results in 2025? - Management noted that retailers have navigated tariff challenges effectively, maintaining traditional rent-to-sales ratios and profitability [66]

Tanger (SKT) 2025 Conference Summary Company Overview - Tanger is a retail-focused Real Estate Investment Trust (REIT) with 44 years of history, 32 years listed on NYSE, and a significant presence in the outlet sector with 37 outlets in the U.S. and 2 in Canada [3][4] - The company has expanded into the open-air lifestyle business with three centers located in Huntsville, Alabama, Little Rock, Arkansas, and Cleveland, Ohio [4] Financial Highlights - Tanger has an equity value of approximately $4 billion and an enterprise value of $5.7 billion, with a low leverage ratio of about 5x debt to EBITDA [4] - The company has delivered same-center Net Operating Income (NOI) growth of approximately 5% over the last four years, with guidance for 2025 set at 2% to 4% [7] - Funds From Operations (FFO) growth guidance for 2025 is between 4% to 8%, which would be the highest in the retail sector [7] - A recent dividend increase of 6.5% aligns with free cash flow, maintaining a low payout ratio of 60% compared to the sector average of 75% [7] Growth Strategy - The growth strategy is based on three pillars: internal growth through remerchandising, intensifying existing real estate, and external growth through acquisitions [5][6] - Over the last 18 months, Tanger has invested approximately $650 million into five new assets, including a new outlet center in Nashville, Tennessee [6] Retail Environment Insights - Retailers are optimistic despite concerns about tariffs, with over 90% indicating a focus on supply chain diversity post-COVID [10][11] - The outlet business is evolving, with retailers using it to clear excess inventory and as a utility for brand exposure [14][31] - The company sees a shift in consumer behavior, with local customers becoming increasingly important due to remote work trends [17] Customer Experience and Remerchandising - Tanger has adapted its centers to enhance customer experience by adding food and beverage options, entertainment venues, and experiential retail [18][22] - The Nashville center exemplifies this shift, featuring a community gathering space and a mix of local food and beverage options [21] Tenant Management and Leasing Strategy - The company is proactive in managing its tenant portfolio, replacing underperforming tenants like Forever 21 with brands that align with current consumer trends [26] - Food and beverage now represent 7.5% of the shopping center area, indicating a strategic pivot towards diverse tenant categories [25] Market Position and Competitive Advantage - Tanger's open-air format allows for lower operational costs compared to traditional malls, with a CapEx load of about 15% of NOI, significantly lower than other retail formats [30][32] - The company benefits from a lack of new retail development in the U.S., making existing spaces more valuable [24][42] Acquisition Strategy and Financial Capacity - Recent acquisitions have yielded initial returns of 8% to 8.5%, with a focus on properties that can enhance the overall portfolio [42] - Tanger has a low leverage ratio and significant forward equity capacity, allowing for continued investment in unique acquisition opportunities [43] Conclusion - Tanger is well-positioned in the retail real estate market, leveraging its unique outlet format, proactive tenant management, and strategic growth initiatives to drive value for shareholders [39][43]