Acadia Realty Trust(US:AKR)2023-10-31 22:37Financial Data and Key Metrics Changes - The company reported FFO of $0.27 per share for Q3 2023, with a year-over-year earnings growth of about 6% expected for the full year [32] - Same-store NOI growth was 5.8% for the quarter and 5.9% for the nine months, remaining on track to meet the upper end of the initial guidance of 5% to 6% for 2023 [33] Business Line Data and Key Metrics Changes - The leasing team signed over $8 million of new leases in the first nine months of 2023, expecting a total of $10 million to $11 million of ABR from new deals, representing a 20% increase over 2022 [21] - Significant cash spreads were achieved in New York City, with leases signed in Soho showing cash spreads of 45% and 95% [22] Market Data and Key Metrics Changes - The suburban portfolio continues to see quality top-line growth, with healthy competition for junior boxes [26] - Downtown Brooklyn's City Point is experiencing significant momentum, averaging over 600,000 visitors a month, with traffic increasing 16% year-over-year [27] Company Strategy and Development Direction - The company aims to achieve core NOI growth of $30 to $40 million over the next several years, driven by strong demand from retailers and a landlord-friendly supply-demand dynamic [20] - The company is focused on maintaining a disciplined approach to asset recycling and reducing exposure to markets like Chicago when appropriate [44] Management's Comments on Operating Environment and Future Outlook - Management noted that while macroeconomic concerns exist, consumer resilience remains strong, and tenant demand is not yet showing signs of reduction [13] - The company is well-positioned with nearly $900 million of interest rate hedges, insulating its balance sheet from interest rate fluctuations [40] Other Important Information - The company has a signed but not yet open pipeline of $8.3 million of ABR, with expectations for approximately 15% to commence in Q4 2023 [39] - The balance sheet goals are on track, with a target to reduce core debt to EBITDA in the mid to low 6s within the next 18 months [41] Q&A Session Summary Question: Thoughts on balance sheet initiatives and potential asset recycling - Management indicated that reducing exposure to markets like Chicago is logical on a disciplined basis, while balance sheet initiatives will be pursued in an earnings-neutral manner [44][45] Question: Update on San Francisco neighborhood centers - Management provided an update on Whole Foods' progress in City Center, noting increased community support for their opening [47] Question: Steps required for City Point to be part of the same-store pool - Management clarified that stabilization of the asset is key before it can be included in the same-store metrics [50] Question: Recurring quarterly FFO run rate expectations - Management suggested that the run rate of $0.30 to $0.34 is expected to be stable throughout the year, with no significant fluctuations anticipated [52] Question: Percentage of signed but not occupied leases that are high-value street rents - Management estimated that over 75% of the $8.3 million signed but not occupied leases are high-value street rents [57]