Acadia Realty Trust(US:AKR)2019-10-24 22:12Financial Data and Key Metrics Changes - The third quarter same-store NOI was 3.1%, with street and urban portfolio growing 4.8%, significantly outperforming the suburban portfolio at around 1% [21][22] - Year-to-date same-store portfolio growth was 4.1%, with street and urban contributing 6.6% [21] - The third quarter earnings came in at $0.34 per share, exceeding expectations [28] Business Line Data and Key Metrics Changes - The core portfolio is projected to grow in excess of 4% over the next several years, driven by 3% embedded growth and 1% from profitable redevelopments [20] - Year-to-date, $180 million of core acquisitions have been announced, with a focus on accretive properties in key urban markets [13][16] Market Data and Key Metrics Changes - The company noted a significant increase in tenant demand for key physical locations, indicating a recovery in certain street retail locations [12] - The bankruptcy of Forever 21 had a 30 basis point impact on the quarter, with an expected full-year impact of approximately 100 basis points [23] Company Strategy and Development Direction - The company is focusing on growing cash flow rather than increasing exposure to new development, ensuring leverage and liquidity are at desired levels [8] - The strategy includes acquiring properties that are accretive to NAV and long-term earnings growth, particularly in urban markets [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the economic environment, noting that while there are concerns about a potential recession, the job market and consumer spending remain strong [7] - The company anticipates continued opportunities for growth through careful acquisitions and a strong focus on internal growth [19] Other Important Information - The fund business has seen $330 million in property acquisitions year-to-date, with Fund V now 16% invested [16][33] - The company has raised approximately $140 million of equity to fund its acquisition pipeline and increase liquidity [32] Q&A Session Summary Question: Expectations for same-store NOI growth - Management reaffirmed that the 4% growth target remains intact, but noted the uncertainty around various moving pieces [42] Question: Impact of Uniqlo lease on P&L - The Uniqlo lease will start impacting cash rent in late Q4, with straight-line adjustments recognized from the turnover day [45] Question: Total square footage of Melrose Place acquisitions - Details will be provided upon closing of the acquisitions [46] Question: Comparison of street and urban markets in LA vs. other cities - Management highlighted the unique opportunities in LA, emphasizing the importance of retailer conversations to identify profitable locations [49] Question: Impact of Forever 21 bankruptcy - The bankruptcy resulted in a full reserve for one month’s rent, impacting the quarter’s results [55] Question: Future investment activity - Management indicated a potential increase in investment activity, with more realistic seller expectations emerging [57] Question: Cap rate expectations for Fund V - There is uncertainty regarding cap rate movements, but management remains optimistic about achieving returns despite market fluctuations [62] Question: Growth strategy in Los Angeles - The company is focused on Melrose Place for now but is open to exploring other opportunities if they arise [70]