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]

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]

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]