Acadia Realty Trust (NYSE: AKR) swings to profit on asset sales
Acadia Realty Trust reported substantially higher profitability for the six months ended June 30, 2026. Total revenues were $198,415 (in thousands) versus $204,986 (in thousands) in 2025, but net income swung to $161,941 (in thousands) from a loss of $32,599 (in thousands), driven largely by a $146,117 (in thousands) gain on property dispositions, higher equity in earnings from unconsolidated affiliates, lower interest expense and the absence of prior-year impairment charges.
The company continued to reposition its portfolio. It acquired six high‑street and open‑air retail properties for $198,439 (in thousands) while disposing of assets and portfolios that generated $572,015 (in thousands) of proceeds and increased investments in joint ventures to $263,598 (in thousands). Mortgage and other notes payable, net, declined to $480,045 (in thousands) from $893,944 (in thousands), while unsecured notes payable, net, rose to $1,113,650 (in thousands), reflecting a shift toward unsecured financing. Operating cash flow was solid at $89,610 (in thousands), and total assets were $4,617,507 (in thousands). Notes receivable, net, were $154,501 (in thousands), with one nonaccrual and one defaulted loan evaluated based on collateral.
Positive
- Mortgage debt reduction and balance-sheet shift: Mortgage and other notes payable, net, fell to $480,045 (in thousands) from $893,944 (in thousands), while unsecured notes increased, indicating substantial secured debt reduction and a move toward more flexible unsecured financing.
Negative
- None.
Filing Explained
As of June 30, 2026, 6,210 thousand common shares were issued, increasing outstanding shares to 137,330 thousand and diluting existing holders.
Acadia Realty Trust reports that 6,210 thousand common shares were issued during the six months ended
A Form 10-Q is an unaudited quarterly report covering interim financial statements and updates to risks and liquidity. The filing shows 137,330 thousand common shares outstanding at
Credit exposure remains a specific follow-up item: one $
Key Figures
Key Terms
UPREIT financial
variable interest entities financial
Preferred Return financial
troubled debt restructuring financial
held-to-maturity debt instrument financial
allowance for credit losses financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Acadia Realty Trust (AKR) perform financially in the first half of 2026?
What were Acadia Realty Trust (AKR)’s earnings per share for Q2 and H1 2026?
How much property did Acadia Realty Trust (AKR) acquire and sell in 2026 so far?
What drove Acadia Realty Trust (AKR)’s large gain on property dispositions in 2026?
How did Acadia Realty Trust (AKR)’s debt profile change by June 30, 2026?
What is the size and performance of Acadia Realty Trust (AKR)’s notes receivable portfolio?
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act) Yes ☐ No
As of July 24, 2026, there were
ACADIA REALTY TRUST AND SUBSIDIARIES
FORM 10-Q
INDEX
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Item No. |
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Description |
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PART I - FINANCIAL INFORMATION |
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Financial Statements |
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Condensed Consolidated Balance Sheets (Unaudited) as of June 30, 2026 and December 31, 2025 |
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Condensed Consolidated Statements of Operations (Unaudited) for the Three and Six Months Ended June 30, 2026 and 2025 |
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Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) for the Three and Six Months Ended June 30, 2026 and 2025 |
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Condensed Consolidated Statements of Changes in Equity (Unaudited) for the Three and Six Months Ended June 30, 2026 and 2025 |
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Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 2026 and 2025 |
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Notes to Condensed Consolidated Financial Statements (Unaudited) |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Quantitative and Qualitative Disclosures about Market Risk |
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Controls and Procedures |
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PART II - OTHER INFORMATION |
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Legal Proceedings |
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1A. |
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Risk Factors |
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Unregistered Sales of Equity Securities and Use of Proceeds |
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Defaults Upon Senior Securities |
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Mine Safety Disclosures |
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Other Information |
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Exhibits |
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Signatures |
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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this Quarterly Report on Form 10-Q (this “Report”) of Acadia Realty Trust, a Maryland real estate investment trust (the “Company”), may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this statement for the purposes of complying with those safe harbor provisions, in each case, to the extent applicable. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by the use of words such as “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend” or “project,” or the negative thereof, or other variations thereon or comparable terminology. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause our actual results and financial performance to be materially different from future results and financial performance expressed or implied by such forward-looking statements, including, but not limited to: (i) macroeconomic conditions, including due to geopolitical instability, contemplated tariff increases and other trade restrictions, which may lead to a disruption of or lack of access to the capital markets, disruptions and instability in the banking and financial services industries and elevated inflation; (ii) our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate and integrate diversifying acquisitions and investments; (iii) changes in general economic conditions or economic conditions in the markets in which we may, from time to time, compete, and their effect on our revenues, earnings and funding sources and those of our tenants; (iv) increases in our borrowing costs as a result of elevated inflation, changes in interest rates and other factors; (v) our ability to pay down, refinance, restructure or extend our indebtedness as it becomes due; (vi) our investments in joint ventures and unconsolidated entities, including our lack of sole decision-making authority and our reliance on our joint venture partners’ financial condition; (vii) our ability to obtain the financial results expected from our development and redevelopment projects; (viii) our tenants’ ability and willingness to renew their leases with us upon expiration, our ability to re-lease our properties on the same or better terms in the event of nonrenewal or in the event we exercise our right to replace an existing tenant, and obligations we may incur in connection with the replacement of an existing tenant; (ix) our potential liability for environmental matters; (x) damage to our properties from catastrophic weather and other natural events, and the physical effects of climate change; (xi) the economic, political and social impact of, and uncertainty surrounding, any future public health crisis, which may adversely affect us and our tenants’ business, financial condition, results of operations and liquidity; (xii) uninsured losses; (xiii) our ability and willingness to maintain our qualification as a real estate investment trust (“REIT”) in light of economic, market, legal, tax and other considerations; (xiv) information technology (“IT”) security breaches, including increased cybersecurity risks relating to the use of remote technology and artificial intelligence (“AI”); (xv) risks associated with our use of AI tools, which could result in reputational harm, and legal or regulatory liability; (xvi) the loss of key executives; and (xvii) the accuracy of our methodologies and estimates regarding corporate responsibility metrics, goals and targets, tenant willingness and ability to collaborate towards reporting such metrics and meeting such goals and targets, and the impact of governmental regulation on our corporate responsibility efforts.
The factors described above are not exhaustive and additional factors could adversely affect the Company’s future results and financial performance, including the risk factors discussed under the section captioned “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and other periodic or current reports the Company files with the Securities and Exchange Commission (the “SEC”), including those set forth under the headings “Item 1A. Risk Factors” and “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Report. These risks and uncertainties should be considered in evaluating any forward-looking statements contained or incorporated by reference herein. Any forward-looking statements speak only as of the date hereof. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any changes in the Company’s expectations with regard thereto or changes in the events, conditions or circumstances on which such forward-looking statements are based.
SPECIAL NOTE REGARDING CERTAIN REFERENCES
All references to “Notes” throughout the document refer to the Notes to the Condensed Consolidated Financial Statements of the registrant referenced in Part I, Item 1. Financial Statements.
3
PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
ACADIA REALTY TRUST AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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June 30, |
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December 31, |
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(in thousands, except share and per share data) |
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2026 |
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2025 |
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ASSETS |
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(Unaudited) |
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Investments in real estate |
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Operating real estate, net |
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$ |
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Real estate under development |
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Net investments in real estate |
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Notes receivable, net ($ |
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Investments in and advances to unconsolidated affiliates |
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Other assets, net |
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Right-of-use assets - operating leases, net |
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Cash and cash equivalents |
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Restricted cash |
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Rents receivable, net |
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Assets of property held for sale |
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Total assets (b) |
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$ |
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LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY |
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Liabilities: |
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Mortgage and other notes payable, net |
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$ |
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Unsecured notes payable, net |
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Unsecured line of credit |
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Accounts payable and other liabilities |
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Lease liabilities - operating leases |
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Dividends and distributions payable |
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Distributions in excess of income from, and investments in, unconsolidated affiliates |
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Total liabilities (b) |
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Commitments and contingencies (Note 9) |
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Redeemable noncontrolling interests (Note 10) |
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Equity: |
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Acadia Shareholders' Equity |
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Common shares, $ |
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Additional paid-in capital |
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Accumulated other comprehensive income |
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Distributions in excess of accumulated earnings |
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Total Acadia shareholders’ equity |
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Noncontrolling interests |
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Total equity |
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Total liabilities, redeemable noncontrolling interests, and equity |
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$ |
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$ |
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The accompanying notes are an integral part of these Condensed Consolidated Financial Statements (unaudited).
4
ACADIA REALTY TRUST AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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(in thousands, except per share amounts) |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenues |
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Rental |
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$ |
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$ |
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$ |
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$ |
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Other |
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Total revenues |
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Expenses |
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Depreciation and amortization |
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General and administrative |
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Real estate taxes |
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Property operating |
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Impairment charges |
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Total expenses |
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Gain on disposition of properties |
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Operating income |
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Equity in earnings (losses) of unconsolidated affiliates |
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Interest income (a) |
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Realized and unrealized holding (losses) gains on investments and other |
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Interest expense |
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Loss on change in control |
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Income (loss) from continuing operations before income taxes |
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Income tax provision |
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( |
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Net income (loss) |
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Net loss attributable to redeemable noncontrolling interests |
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Net (income) loss attributable to noncontrolling interests |
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Net income attributable to Acadia shareholders |
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$ |
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$ |
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$ |
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$ |
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Basic income per share |
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$ |
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$ |
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$ |
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$ |
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Diluted income per share |
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$ |
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$ |
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$ |
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$ |
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Weighted average shares for basic income per share |
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Weighted average shares for diluted income per share |
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The accompanying notes are an integral part of these Condensed Consolidated Financial Statements (unaudited).
5
ACADIA REALTY TRUST AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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(in thousands) |
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2026 |
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2025 |
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2026 |
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2025 |
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Net income (loss) |
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$ |
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$ |
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$ |
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Other comprehensive income (loss): |
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Unrealized gain (loss) on valuation of swap agreements |
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Reclassification of realized interest on swap agreements |
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( |
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( |
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Other comprehensive income (loss) |
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( |
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Comprehensive income (loss) |
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Comprehensive loss attributable to redeemable noncontrolling interests |
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Comprehensive (income) loss attributable to noncontrolling interests |
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Comprehensive income (loss) attributable to Acadia shareholders |
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$ |
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$ |
( |
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$ |
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$ |
( |
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The accompanying notes are an integral part of these Condensed Consolidated Financial Statements (unaudited).
6
ACADIA REALTY TRUST AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
Three Months Ended June 30, 2026 and 2025
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Acadia Shareholders |
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(in thousands, except per share amounts) |
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Common |
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Share |
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Additional |
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Accumulated |
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Distributions |
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Total |
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Noncontrolling |
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Total |
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Redeemable Noncontrolling |
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Balance as of April 1, 2026 |
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$ |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
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$ |
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$ |
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Issuance of Common Shares, net |
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— |
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— |
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Conversion of OP Units to Common Shares by limited partners of the Operating Partnership |
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— |
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— |
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— |
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Dividends/distributions declared ($ |
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— |
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— |
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— |
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— |
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( |
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( |
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( |
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( |
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Adjustment of redeemable non-controlling interest to estimated redemption value (Note 10) |
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— |
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— |
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— |
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— |
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( |
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— |
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Acquisition of noncontrolling interest (Note 10) |
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— |
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— |
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— |
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— |
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City Point Loan accrued interest (Note 10) |
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— |
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— |
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— |
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Employee and trustee stock compensation, net |
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— |
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|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|||||
Noncontrolling interest distributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
Noncontrolling interest contributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|||
Comprehensive income (loss) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Reallocation of noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
||
Balance as of June 30, 2026 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance as of April 1, 2025 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
Conversion of OP Units to Common Shares by limited partners of the Operating Partnership |
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|||
Dividends/distributions declared ($ |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
City Point Loan accrued interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Employee and trustee stock compensation, net |
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|||||
Noncontrolling interest distributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
Noncontrolling interest contributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|||
Comprehensive (loss) income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Reallocation of noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
||
Balance as of June 30, 2025 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements (unaudited).
7
ACADIA REALTY TRUST AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
Six Months Ended June 30, 2026 and 2025
|
|
Acadia Shareholders |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
(in thousands, except per share amounts) |
|
Common |
|
|
Share |
|
|
Additional |
|
|
Accumulated |
|
|
Distributions |
|
|
Total |
|
|
Noncontrolling |
|
|
Total |
|
|
Redeemable Noncontrolling Interest |
|
|||||||||
Balance at January 1, 2026 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
Issuance of Common Shares, net |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|||||
Conversion of OP Units to Common Shares by limited partners of the Operating Partnership |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
||||
Dividends/distributions declared ($ |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
Adjustment of redeemable non-controlling interest to estimated redemption value (Note 10) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
|
|
Acquisition of noncontrolling interest (Note 10) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
City Point Loan accrued interest (Note 10) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Employee and trustee stock compensation, net |
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|||||
Noncontrolling interest distributions |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Noncontrolling interest contributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|||
Comprehensive (loss) income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Reallocation of noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
|
|
|
— |
|
|
|
— |
|
|
Balance at June 30, 2026 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance at January 1, 2025 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
Issuance of Common Shares, net |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|||||
Conversion of OP Units to Common Shares by limited partners of the Operating Partnership |
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|||
Dividends/distributions declared ($ |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
Consolidation of previously unconsolidated investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
— |
|
||
City Point Loan accrued interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
Employee and trustee stock compensation, net |
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|||||
Noncontrolling interest distributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
Noncontrolling interest contributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|||
Comprehensive (loss) income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Reallocation of noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
|
|
|
— |
|
|
|
— |
|
|
Balance at June 30, 2025 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements (unaudited).
8
ACADIA REALTY TRUST AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
Six Months Ended June 30, |
|
|||||
(in thousands) |
|
2026 |
|
|
2025 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
|
|
$ |
( |
) |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
|
|
|
|
||
Gain on disposition of properties and other investments |
|
|
( |
) |
|
|
|
|
Impairment charges |
|
|
|
|
|
|
||
Stock compensation expense |
|
|
|
|
|
|
||
Straight-line rents |
|
|
( |
) |
|
|
( |
) |
Equity in (gains) losses of unconsolidated affiliates |
|
|
( |
) |
|
|
|
|
Distributions of operating income from unconsolidated affiliates |
|
|
|
|
|
|
||
Amortization of financing costs |
|
|
|
|
|
|
||
Non-cash lease expense |
|
|
|
|
|
|
||
Net unrealized holding losses (gains) on investments |
|
|
|
|
|
( |
) |
|
Loss on change in control |
|
|
|
|
|
|
||
Other, net |
|
|
( |
) |
|
|
( |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
|
|
|
( |
) |
|
Accounts payable and accrued expenses |
|
|
( |
) |
|
|
( |
) |
Prepaid expenses and other assets |
|
|
|
|
|
|
||
Other liabilities |
|
|
( |
) |
|
|
( |
) |
Lease liabilities - operating leases |
|
|
( |
) |
|
|
( |
) |
Net cash provided by operating activities |
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
||
Acquisitions of properties |
|
|
( |
) |
|
|
( |
) |
Proceeds from the disposition of properties and other investments, net |
|
|
|
|
|
|
||
Development, construction and property improvement costs |
|
|
( |
) |
|
|
( |
) |
Payment of deferred leasing costs |
|
|
( |
) |
|
|
( |
) |
Investments and advances in unconsolidated affiliates |
|
|
( |
) |
|
|
( |
) |
Return of capital from unconsolidated affiliates |
|
|
|
|
|
|
||
Issuance of note receivable |
|
|
( |
) |
|
|
( |
) |
Proceeds from repayment of note receivable |
|
|
|
|
|
|
||
Refund of deposits for properties under purchase contract |
|
|
|
|
|
|
||
Proceeds from sale of marketable securities |
|
|
|
|
|
|
||
Increase in cash upon change of control |
|
|
|
|
|
|
||
Net cash provided by (used in) investing activities |
|
|
|
|
|
( |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
||
Proceeds from issuances of Common Shares and settlement of forward equity contracts |
|
|
|
|
|
|
||
Proceeds from unsecured notes payable and line of credit |
|
|
|
|
|
|
||
Proceeds received from mortgages payable |
|
|
|
|
|
|
||
Principal payments on unsecured debt and line of credit |
|
|
( |
) |
|
|
( |
) |
Principal payments on mortgages payable |
|
|
( |
) |
|
|
( |
) |
Prepayment penalty on early debt extinguishment |
|
|
( |
) |
|
|
|
|
Payment of deferred financing and other costs |
|
|
( |
) |
|
|
( |
) |
Contributions from noncontrolling interests |
|
|
|
|
|
|
||
Distributions to noncontrolling interests |
|
|
( |
) |
|
|
( |
) |
Dividends paid to Common Shareholders |
|
|
( |
) |
|
|
( |
) |
Acquisition of noncontrolling interest |
|
|
( |
) |
|
|
|
|
Payments of finance lease obligations |
|
|
( |
) |
|
|
|
|
Net cash (used in) provided by financing activities |
|
|
( |
) |
|
|
|
|
(Decrease) increase in cash and cash equivalents and restricted cash |
|
|
( |
) |
|
|
|
|
Cash and cash equivalents of $ |
|
|
|
|
|
|
||
Cash and cash equivalents of $ |
|
$ |
|
|
$ |
|
||
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements (unaudited).
9
ACADIA REALTY TRUST AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)
|
|
Six Months Ended June 30, |
|
|||||
(in thousands) |
|
2026 |
|
|
2025 |
|
||
Supplemental disclosure of cash flow information |
|
|
|
|
|
|
||
Cash paid during the period for interest, net of capitalized interest of $ |
|
$ |
|
|
$ |
|
||
Cash paid for income taxes, net of refunds |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
Supplemental disclosure of non-cash investing and financing activities |
|
|
|
|
|
|
||
Dividends/Distributions declared and payable |
|
$ |
|
|
$ |
|
||
Assumption of accounts payable and accrued expenses through acquisition of real estate |
|
$ |
|
|
$ |
|
||
Conversion of Common and Preferred OP Units to Common Shares |
|
$ |
|
|
$ |
|
||
Accrued interest on note receivable recorded to redeemable noncontrolling interest |
|
$ |
|
|
$ |
|
||
Adjustment of redeemable non-controlling interest to estimated redemption value |
|
$ |
|
|
$ |
|
||
Changes in accrued development, construction and property improvement costs included in Accounts payable and other liabilities |
|
$ |
|
|
$ |
|
||
Note receivable and accrued interest exchanged for redeemable noncontrolling interest |
|
$ |
|
|
$ |
|
||
Properties contributed to unconsolidated affiliates |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Increase (decrease) in assets and liabilities resulting from the consolidation of previously unconsolidated investment: |
|
|
|
|
|
|
||
Operating real estate |
|
$ |
|
|
$ |
|
||
Mortgage and other notes payable |
|
|
|
|
|
|
||
Investments in and advances to unconsolidated affiliates |
|
|
|
|
|
( |
) |
|
Rents receivable and other assets |
|
|
|
|
|
|
||
Accounts payable and other liabilities |
|
|
|
|
|
|
||
Noncontrolling interests |
|
|
|
|
|
|
||
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements (unaudited).
10
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. Organization, Basis of Presentation and Summary of Significant Accounting Policies
Organization
Acadia Realty Trust, (the “Trust”, collectively with its consolidated subsidiaries, the “Company”), a Maryland real estate investment trust (“REIT”), is a fully-integrated equity real estate investment trust focused on the ownership, acquisition, development, and management of retail properties located primarily in high-barrier-to-entry, supply-constrained, densely populated metropolitan areas in the United States.
The Company owns and operates a high-quality real estate portfolio, primarily comprised of street and open-air retail assets in the nation’s most dynamic retail corridors (the “REIT Portfolio”). This portfolio is complemented by an investment management platform that leverages institutional capital relationships to pursue opportunistic, high-yield, and/or value-add investments (“Investment Management”). As of June 30, 2026, the Company held ownership interests in
All of the Company’s assets are held by, and its operations are conducted through, Acadia Realty Limited Partnership (the “Operating Partnership”) and entities in which the Operating Partnership owns an interest. At June 30, 2026 and December 31, 2025, the Trust controlled approximately
The remaining interests are held by limited partners, consisting primarily of entities or individuals that contributed interests in certain properties or entities to the Operating Partnership in exchange for common or preferred units of limited partnership interest (“Common OP Units” or “Preferred OP Units”), as well as employees who have been granted restricted Common OP Units (“LTIP Units”) as long-term incentive compensation (Note 13). Limited partners holding Common OP and LTIP Units generally have the right to exchange their units on a
The Investment Management platform operates through the Company’s consolidated opportunity funds, including: Acadia Strategic Opportunity Fund II, LLC (“Fund II”), Acadia Strategic Opportunity Fund III LLC (“Fund III”), Acadia Strategic Opportunity Fund IV LLC (“Fund IV”), and Acadia Strategic Opportunity Fund V LLC (“Fund V” and, collectively with Fund II, Fund III and Fund IV, the “Funds”), as well as 7 unconsolidated co-investment vehicles with institutional partners in which the Company holds equity ownership interests ranging from
The Operating Partnership earns fees or priority distributions for asset management, property management, construction, development, leasing, and legal services provided to the Funds. Cash flows from the Funds are distributed pro-rata to partners and members (including the Operating Partnership) until each receives a cumulative preferred return (“Preferred Return”) and full return of capital. Thereafter, remaining cash flows are distributed
In June 2026, the Company’s ownership interest in Fund II increased from
Entity |
|
Formation |
|
Operating |
|
|
Capital Called |
|
|
Unfunded |
|
|
Equity Interest |
|
|
Preferred |
|
|
Total |
|
||||||
Fund III |
|
5/2007 |
|
|
% |
|
|
|
|
|
|
|
|
% |
|
|
% |
|
|
|
||||||
Fund IV |
|
5/2012 |
|
|
% |
|
|
|
|
|
|
|
|
% |
|
|
% |
|
|
|
||||||
Fund V |
|
8/2016 |
|
|
% |
|
|
|
|
|
|
|
|
% |
|
|
% |
|
|
|
||||||
11
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Basis of Presentation
The interim Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States GAAP for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required for complete annual financial statements. Operating results for interim periods are not necessarily indicative of results for the full fiscal year. In the opinion of management, all adjustments necessary for a fair presentation of interim Condensed Consolidated Financial Statements have been included. These adjustments are of normal recurring nature.
The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts in the interim Condensed Consolidated Financial Statements and accompanying notes. The most significant assumptions and estimates include those related to the valuation of real estate, depreciable lives, revenue recognition and the collectability of notes receivable and rents receivable. Application of these estimates and assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates.
These interim Condensed Consolidated Financial Statements should be read in conjunction with the Company’s 2025 audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2025.
Segments
We define our reportable segments based on the manner in which our chief operating decision maker makes key operating decisions, evaluates financial performance, allocates resources and manages our business. This approach aligns with our internal reporting structure and reflects the economic characteristics and nature of our operations. Accordingly, we have identified three reportable operating segments: REIT Portfolio, Investment Management and Structured Financing. Refer to Note 12.
Recent Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”) which requires disaggregated disclosure of income statement expenses for public business entities (PBEs). Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. This guidance applies to all PBEs and is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company has elected not to early adopt and the requirements will be applied prospectively with the option for retrospective application. The Company is currently evaluating the expected impact of the adoption of ASU 2024-03 on disclosures within the Company’s Condensed Consolidated Financial Statements.
In November 2025, the FASB issued ASU 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements” (“ASU 2025-09”) that more closely aligns hedge accounting with the economics of an entity’s risk management activities. ASU 2025-09 is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years, with early adoption permitted. The Company expects to early adopt the requirements in the third quarter of 2026. The adoption of ASU 2025-09 is not expected to have a significant impact on the Company’s Condensed Consolidated Financial Statements.
Any other recently issued accounting standards or pronouncements not disclosed above have been excluded as they are not relevant to the Company, or they are not expected to have a material impact on the Condensed Consolidated Financial Statements.
12
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
2. Real Estate
The Company’s consolidated real estate is comprised of the following for the periods presented (in thousands):
|
|
June 30, |
|
|
December 31, |
|
||
Buildings and improvements |
|
$ |
|
|
$ |
|
||
Tenant improvements |
|
|
|
|
|
|
||
Land |
|
|
|
|
|
|
||
Construction in progress |
|
|
|
|
|
|
||
Right-of-use assets - finance leases (Note 11) |
|
|
|
|
|
|
||
Total |
|
|
|
|
|
|
||
Less: Accumulated depreciation and amortization |
|
|
( |
) |
|
|
( |
) |
Operating real estate, net |
|
|
|
|
|
|
||
Real estate under development |
|
|
|
|
|
|
||
Net investments in real estate |
|
$ |
|
|
$ |
|
||
Acquisitions
During the six months ended June 30, 2026, the Company acquired the following consolidated REIT Portfolio retail properties (dollars in thousands):
Property and Location |
|
Percent |
|
Date of |
|
Purchase |
|
|
2026 REIT Portfolio Acquisitions |
|
|
|
|
|
|
|
|
1045 and 1165 Madison Avenue - New York, NY |
|
|
January 29, 2026 |
|
$ |
|
||
Rhode Island Place - Washington, D.C. |
|
|
March 4, 2026 |
|
|
|
||
846 W. Armitage Avenue - Chicago, IL |
|
|
March 5, 2026 |
|
|
|
||
225 Worth Avenue - Palm Beach, FL |
|
|
March 27, 2026 |
|
|
|
||
4-6 Newbury Street and 28 Newbury Street - Boston, MA |
|
|
April 10, 2026 |
|
|
|
||
129 5th Avenue - New York, NY |
|
|
June 15, 2026 |
|
|
|
||
Total 2026 REIT Portfolio Acquisitions |
|
|
|
|
|
$ |
|
|
For acquisitions completed during the period, the Company recorded identifiable intangible assets and intangible liabilities in the aggregate of approximately $
The Company determines the fair value of the individual components of real estate asset acquisitions primarily through calculating the “as-if vacant” value of a building, using an income approach, which relies significantly upon internally determined assumptions. The Company has determined that these estimates primarily rely on Level 3 inputs, which are unobservable inputs based on our own assumptions.
|
|
2026 |
|
||||
|
|
Low |
|
High |
|
||
Exit Capitalization Rate |
|
|
% |
|
% |
||
Discount Rate |
|
|
% |
|
% |
||
Annual net rental rate per square foot on acquired buildings |
|
$ |
|
$ |
|
||
Annual net rental rate per square foot on acquired master lease |
|
$ |
|
$ |
|
||
13
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Dispositions
During the second quarter of 2026, the Company recognized a gain on disposition of properties of $
Properties Held for Sale
As of June 30, 2026, the Company classified the parking garage at 1035 Third Avenue in New York, New York, a consolidated Fund IV Investment Management property, as held for sale. The disposition was completed in July 2026 (Note 16). No properties were classified as held for sale as of December 31, 2025.
The assets of the property held for sale are presented separately in the accompanying condensed consolidated balance sheets and are summarized as follows:
|
|
June 30, |
|
|
|
|
2026 |
|
|
Assets |
|
|
|
|
Building and improvements |
|
$ |
|
|
Land |
|
|
|
|
Less: Accumulated depreciation and amortization |
|
|
( |
) |
Other |
|
|
|
|
|
|
$ |
|
|
Real Estate Under Development
Real estate under development represents the Company’s consolidated properties that have not yet been placed into service and are undergoing substantial development or construction.
Development activity for these properties during the periods presented is summarized below (dollars in thousands):
|
|
January 1, 2026 |
|
|
Six Months Ended June 30, 2026 |
|
|
June 30, 2026 |
|
|||||||||||||||||||
|
|
Number of |
|
|
Carrying |
|
|
Transfers In |
|
|
Capitalized |
|
|
Transfers Out |
|
|
Number of |
|
|
Carrying |
|
|||||||
REIT Portfolio |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
|
|
|
|
|||||||
Total |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
|
|
$ |
|
|||||||
The number of properties in the table above refers to full-property development projects; however, certain projects represent only a portion of a property, and the capitalized costs and carrying value of these projects are included in the table above. As of June 30, 2026, consolidated REIT Portfolio development projects included
14
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
3. Notes Receivable, Net
Interest income from notes and mortgages receivable is reported within the Company’s Structured Financing segment (Note 12). Interest receivable is included in Other assets, net (Note 5).
|
|
June 30, |
|
|
December 31, |
|
|
June 30, 2026 |
||||||||
Description |
|
2026 |
|
|
2025 |
|
|
Number |
|
|
Maturity Date |
|
Interest Rate |
|||
Notes receivable |
|
$ |
|
|
$ |
|
|
|
|
|
|
|||||
Allowance for credit losses |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
Notes receivable, net |
|
$ |
|
|
$ |
|
|
|
|
|
|
|
|
|||
The following table presents the activity in the allowance for credit losses for the six months ended June 30, 2026 and year ended December 31, 2025 (dollars in thousands):
|
|
|
|
|||||
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
Allowance for credit losses as of beginning of periods |
|
$ |
|
|
$ |
|
||
Provision (recovery) of loan losses |
|
|
|
|
|
( |
) |
|
Total credit allowance |
|
$ |
|
|
$ |
|
||
As of June 30, 2026, the Company had
One note receivable with a principal balance of $
The Company holds a preferred equity investment, which is accounted for as a note receivable, and a mezzanine loan with an aggregate carrying value of approximately $
15
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
4. Investments in and Advances to Unconsolidated Affiliates
The Company accounts for its investments in and advances to unconsolidated affiliates primarily under the equity method of accounting.
|
|
|
|
Ownership Interest |
|
June 30, |
|
|
December 31, |
|
||
Portfolio |
|
Property |
|
June 30, 2026 |
|
2026 |
|
|
2025 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
REIT: |
|
|
|
|
|
|
|
|
|
|
||
|
|
Gotham Plaza |
|
|
$ |
|
|
$ |
|
|||
|
|
Georgetown Portfolio (a) |
|
|
|
|
|
|
|
|||
|
|
1238 Wisconsin Avenue (a, b) |
|
|
|
|
|
|
|
|||
|
|
840 N. Michigan Avenue (c, d) |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||
Investment Management: |
|
|
|
|
|
|
|
|
|
|
||
Fund IV: (e) |
|
Fund IV Other Portfolio (f) |
|
|
|
|
|
|
|
|||
|
|
650 Bald Hill Road (g) |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||
Fund V: (e) |
|
Family Center at Riverdale (c) |
|
|
|
|
|
|
|
|||
|
|
Tri-City Plaza (m) |
|
|
|
|
|
|
|
|||
|
|
Frederick County Acquisitions (h) |
|
|
|
|
|
|
|
|||
|
|
Wood Ridge Plaza |
|
|
|
|
|
|
|
|||
|
|
La Frontera Village |
|
|
|
|
|
|
|
|||
|
|
Shoppes at South Hills |
|
|
|
|
|
|
|
|||
|
|
Mohawk Commons |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||
Other: |
|
Shops at Grand |
|
|
|
|
|
|
|
|||
|
|
Walk at Highwoods Preserve |
|
|
|
|
|
|
|
|||
|
|
LINQ Promenade |
|
|
|
|
|
|
|
|||
|
|
Shops at Skyview (i) |
|
|
|
|
|
|
|
|||
|
|
Atlantic Portfolio (j) |
|
|
|
|
|
|
|
|||
|
|
Avenue West Cobb |
|
|
|
|
|
|
|
|||
|
|
Pinewood Square |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||
Various: |
|
Due from Related Parties |
|
|
|
|
|
|
|
|
||
|
|
Other (k) |
|
|
|
|
|
|
|
|
||
|
|
Investments in and advances to |
|
|
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
REIT: |
|
Crossroads (l) |
|
|
$ |
|
|
$ |
|
|||
|
|
Distributions in excess of income from, |
|
|
|
$ |
|
|
$ |
|
||
16
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
In January 2026, the Company acquired a
In February 2026, the Company acquired a
In March 2026, the Company retained a
During the three months ended June 30, 2026, the Company, through Fund IV, sold its investment in 650 Bald Hill for $
During the three months ended June 30, 2026, the Company, through Fund V, sold its investment in Tri-City Plaza for $
840 N. Michigan Avenue
In December 2023, an unconsolidated venture holding an interest in a property on North Michigan Avenue modified its $
17
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
during the three and six months ended June 30, 2026 and 2025, respectively. As part of the modification, the Operating Partnership provided a recourse guarantee equal to
Fees earned from and paid to Unconsolidated Affiliates
The Company earned fees for asset management, property management, construction, development, legal and leasing fees from its investments in unconsolidated affiliates totaling $
In addition, the Company’s unconsolidated joint ventures paid fees to the Company’s unaffiliated joint venture partners of $
Summarized Financial Information of Unconsolidated Affiliates
The following Combined and Condensed Balance Sheets and Statements of Operations, in each period, summarized the financial information of the Company’s investments in unconsolidated affiliates that were held as of June 30, 2026 and 2025 (in thousands):
|
|
June 30, |
|
|
December 31, |
|
||
|
|
2026 |
|
|
2025 |
|
||
Combined and Condensed Balance Sheets |
|
|
|
|
|
|
||
Assets: |
|
|
|
|
|
|
||
Rental property, net |
|
$ |
|
|
$ |
|
||
Other assets |
|
|
|
|
|
|
||
Total assets |
|
$ |
|
|
$ |
|
||
Liabilities and partners’ equity: |
|
|
|
|
|
|
||
Mortgage notes payable |
|
$ |
|
|
$ |
|
||
Other liabilities |
|
|
|
|
|
|
||
Partners’ equity |
|
|
|
|
|
|
||
Total liabilities and partners’ equity |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
Company's share of accumulated equity |
|
$ |
|
|
$ |
|
||
Basis differential |
|
|
|
|
|
|
||
Deferred fees, net of portion related to the Company's interest |
|
|
|
|
|
|
||
Amounts receivable/payable by the Company |
|
|
|
|
|
|
||
Investments in and advances to unconsolidated affiliates, net of Company's |
|
|
|
|
|
|
||
Investments carried at cost |
|
|
|
|
|
|
||
Company's share of distributions in excess of income from and |
|
|
|
|
|
|
||
Investments in and advances to unconsolidated affiliates |
|
$ |
|
|
$ |
|
||
18
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Combined and Condensed Statements of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total revenues |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Operating and other expenses |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Interest expense |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Depreciation and amortization |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Gain on extinguishment of debt (a) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gain (loss) on disposition of properties (b) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Net (loss) income attributable to unconsolidated affiliates |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Company’s share of equity in net (losses) earnings of unconsolidated affiliates |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||
Basis differential amortization |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Company’s equity in earnings (losses) of unconsolidated affiliates |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||
5. Other Assets, Net and Accounts Payable and Other Liabilities
Other assets, net and accounts payable and other liabilities are comprised of the following for the periods presented:
|
|
June 30, |
|
|
December 31, |
|
||
(in thousands) |
|
2026 |
|
|
2025 |
|
||
Other Assets, Net: |
|
|
|
|
|
|
||
Lease intangibles, net (Note 6) |
|
$ |
|
|
$ |
|
||
Derivative financial instruments (Note 8) |
|
|
|
|
|
|
||
Deferred charges, net (A) |
|
|
|
|
|
|
||
Accrued interest receivable (Note 3) |
|
|
|
|
|
|
||
Prepaid expenses |
|
|
|
|
|
|
||
Due from seller |
|
|
|
|
|
|
||
Income taxes receivable |
|
|
|
|
|
|
||
Deposits |
|
|
|
|
|
|
||
Corporate assets, net |
|
|
|
|
|
|
||
Other receivables |
|
|
|
|
|
|
||
|
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
(A) Deferred Charges, Net: |
|
|
|
|
|
|
||
Deferred leasing and other costs |
|
$ |
|
|
$ |
|
||
Deferred financing costs related to line of credit |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Accumulated amortization |
|
|
( |
) |
|
|
( |
) |
Deferred charges, net |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
Accounts Payable and Other Liabilities: |
|
|
|
|
|
|
||
Lease intangibles, net (Note 6) |
|
$ |
|
|
$ |
|
||
Accounts payable and accrued expenses |
|
|
|
|
|
|
||
Deferred income |
|
|
|
|
|
|
||
Tenant security deposits, escrow and other |
|
|
|
|
|
|
||
Lease liability - finance leases, net (Note 11) |
|
|
|
|
|
|
||
Derivative financial instruments (Note 8) |
|
|
|
|
|
|
||
|
|
$ |
|
|
$ |
|
||
19
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
6. Lease Intangibles
Intangible assets and liabilities are included in Other assets, net and Accounts payable and other liabilities (Note 5) on the Condensed Consolidated Balance Sheets and summarized as follows (in thousands):
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||||||||||||||||||
|
|
Gross Carrying |
|
|
Accumulated |
|
|
Net Carrying |
|
|
Gross Carrying |
|
|
Accumulated |
|
|
Net Carrying |
|
||||||
Amortizable Intangible Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
In-place lease intangible assets |
|
$ |
|
|
$ |
( |
) |
|
|
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
Above-market rent |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortizable Intangible Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Below-market rent |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||
Above-market ground lease |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||
Amortization of in-place lease intangible assets is recorded in depreciation and amortization expense in the Condensed Consolidated Statements of Operations. Amortization of above-market rent and below-market rent is recorded as a reduction to and increase to rental revenue, respectively, in the Condensed Consolidated Statements of Operations. Amortization of above-market ground leases is recorded as a reduction to rent expense on the Condensed Consolidated Statements of Operations.
The amounts of such amortization included in the accompanying consolidated statements of operations and comprehensive income (loss) are as follows (in thousands):
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Amortization of in-place lease intangibles |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Amortization of above-market rent and below-market rent |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Amortization of above-market ground leases |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
20
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
7. Debt
A summary of the Company’s consolidated indebtedness is as follows (dollars in thousands):
|
|
|
|
|
Carrying Value as of |
|||
|
|
Interest Rate as of |
Maturity Date as of |
|
June 30, |
|
December 31, |
|
|
|
June 30, 2026 |
|
June 30, 2026 |
|
2026 |
|
2025 |
Mortgages Payable |
|
|
|
|
|
|
|
|
REIT Portfolio |
|
|
|
$ |
|
$ |
||
Fund II (a) |
|
|
|
|
|
|
||
Fund IV |
|
|
|
|
||||
Fund V |
|
SOFR+ |
|
|
|
|||
Net unamortized debt issuance costs |
|
|
|
|
|
( |
|
( |
Unamortized premium |
|
|
|
|
|
|
||
Total Mortgages Payable |
|
|
|
|
|
$ |
|
$ |
|
|
|
|
|
|
|
|
|
Unsecured Notes Payable |
|
|
|
|
|
|
|
|
Term Loans (b, c) |
|
SOFR+ |
|
|
$ |
|
$ |
|
Senior Notes |
|
|
|
|
||||
Term Loan A-3 |
|
SOFR+ |
|
|
|
|||
Fund IV Term Loan |
|
SOFR+ |
|
|
|
|||
Net unamortized debt issuance costs |
|
|
|
|
|
( |
|
( |
Total Unsecured Notes Payable |
|
|
|
|
|
$ |
|
$ |
|
|
|
|
|
|
|
|
|
Unsecured Line of Credit |
|
|
|
|
|
|
|
|
Revolving Credit Facility (c, d) |
|
SOFR+ |
|
|
$ |
|
$ |
|
|
|
|
|
|
|
|
|
|
Total Debt (e)(f) |
|
|
|
|
|
$ |
|
$ |
Net unamortized debt issuance costs |
|
|
|
|
|
( |
|
( |
Unamortized premium |
|
|
|
|
|
|
||
Total Indebtedness |
|
|
|
|
|
$ |
|
$ |
Mortgages Payable
At June 30, 2026 and December 31, 2025, the Company’s property mortgage loans were collateralized by
Investment Management
In connection with the Fourth Amended and Restated Credit Facility, during the quarter ended June 30, 2026, the Operating Partnership used proceeds from Term Loan A-3, discussed below, to refinance a secured mortgage loan related to a Fund II asset which had an outstanding balance of $
During the six months ended June 30, 2026, the Company, through its Investment Management platform:
21
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Unsecured Notes Payable and Unsecured Line of Credit
The Company was in compliance with its unsecured notes payable and unsecured line of credit debt covenant requirements as of June 30, 2026.
Revolving Credit Facility
On April 17, 2026, the Operating Partnership entered into a Fourth Amended and Restated Credit Agreement (the "Amendment") to amend and expand its senior unsecured credit facility (the “Credit Facility”). The Amendment (i) extended the maturity of the $
The Revolving Credit Facility, Term Loan A-1 and Term Loan A-3 bear interest at floating rates based on SOFR plus an applicable margin determined by reference to the Company’s leverage ratio or credit ratings. As of June 30, 2026, the applicable rates were SOFR plus
Unamortized deferred financing costs of $
As of June 30, 2026, outstanding borrowings were $
Scheduled Debt Principal Payments
The following table summarizes the scheduled principal repayments, without regard to available extension options (described further below), of the Company’s consolidated indebtedness, as of June 30, 2026 (in thousands):
Year Ending December 31, |
|
Principal Repayments |
|
|
2026 (Remainder) |
|
$ |
|
|
2027 |
|
|
|
|
2028 |
|
|
|
|
2029 |
|
|
|
|
2030 |
|
|
|
|
Thereafter |
|
|
|
|
|
|
|
|
|
Unamortized premium |
|
|
|
|
Net unamortized debt issuance costs |
|
|
( |
) |
Total indebtedness (a) |
|
$ |
|
|
22
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
8. Financial Instruments and Fair Value Measurements
Items Measured at Fair Value on a Recurring Basis
The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands):
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||||||||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivative financial instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivative financial instruments |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
There were no transfers between levels of the fair value hierarchy during the six months ended June 30, 2026, and 2025.
Items Measured at Fair Value on a Nonrecurring Basis
Redeemable Noncontrolling Interests
During the six months ended June 30, 2026, the Company recorded an adjustment of redeemable noncontrolling interest to its estimated redemption value. Refer to Note 10 for further discussion regarding these interests.
Derivative Financial Instruments
The Company had the following interest rate swaps and caps for the periods presented (information is as of June 30, 2026, unless otherwise noted, and dollars in thousands):
|
|
|
|
|
|
|
|
|
Strike Rate |
|
|
|
Fair Value |
|
||||||||
Derivative |
|
Aggregate Notional Amount |
|
|
Effective Date |
|
Maturity Date |
|
Low |
|
High |
|
Balance Sheet |
|
June 30, |
|
|
December 31, |
|
|||
REIT Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest Rate Swaps |
|
$ |
|
|
|
|
— |
|
Other Assets |
|
$ |
|
|
$ |
|
|||||||
Interest Rate Swaps |
|
|
|
|
|
|
— |
|
Accounts payable and other liabilities |
|
|
( |
) |
|
|
( |
) |
|||||
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
$ |
|
|||
Investment Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Fund II |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest Rate Swap |
|
$ |
|
|
|
|
— |
|
Other Assets |
|
$ |
|
|
$ |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Fund V |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest Rate Swaps |
|
$ |
|
|
|
|
— |
|
Other Assets |
|
$ |
|
|
$ |
|
|||||||
Interest Rate Swap |
|
|
|
|
|
|
— |
|
Accounts payable and other liabilities |
|
|
( |
) |
|
|
( |
) |
|||||
Interest Rate Cap |
|
|
|
|
|
|
— |
|
Other Assets |
|
|
|
|
|
|
|||||||
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
$ |
( |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Asset Derivatives |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
$ |
|
|||||
Total Liability Derivatives |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
( |
) |
|
$ |
( |
) |
|||
As of June 30, 2026, it is estimated that approximately $
During the six months ended June 30, 2026, the Company terminated
23
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Other Financial Instruments
The carrying values and fair values of Company’s other financial assets and liabilities that are not measured at fair value on its Condensed Consolidated Balance Sheets are as follows as of the dates shown (dollars in thousands, inclusive of amounts attributable to noncontrolling interests where applicable):
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
|||||||||||
|
|
Level |
|
|
Carrying |
|
|
Estimated |
|
|
Carrying |
|
|
Estimated |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Notes Receivable (a) |
|
|
3 |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
City Point Loan (f) |
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mortgage and Other Notes Payable (a, d) |
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment in non-traded equity securities (b) |
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unsecured notes payable and Unsecured line of credit (c, e) |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
As of June 30, 2026 and December 31, 2025, the carrying amounts of the Company’s cash and cash equivalents, restricted cash, rents receivable, accounts payable, and certain financial instruments classified as Level 1 within other assets and other liabilities approximated their fair values. This approximation is due to the short-term nature and high liquidity of these instruments.
9. Commitments and Contingencies
The Company is involved in various matters of litigation arising out of, or incidental to, its business. While the Company is unable to predict with certainty the outcome of any particular matter, management does not expect, when such litigation is resolved, that the Company’s resulting exposure to loss contingencies, if any, will have a material adverse effect on its consolidated financial position or results of operations.
Commitments and Guaranties
The Operating Partnership is jointly and severally liable for the obligations under the Fund IV Term Loan, which may result in an obligation for the payment of principal, interest, and any other amounts due. As of June 30, 2026, the Company did not expect the Operating Partnership to make any payments under this arrangement. The outstanding balance of the facility was $
Additionally, in connection with the refinancing of the La Frontera Village (Note 4) property mortgage loan of $
Construction and Tenant Improvement Commitments
In conjunction with the development and expansion of various properties, the Company has entered into agreements with general contractors for the construction or development of properties aggregating approximately $
24
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Additionally, the Company has committed to fund tenant improvements under executed leases totaling approximately $
Insurance Coverage
The Company maintains insurance coverage on its properties in different types and amounts, with deductibles, that management believes are consistent with coverage typically carried by owners of similar properties.
10. Shareholders’ Equity, Noncontrolling Interests and Other Comprehensive Loss
Public Offerings
From time to time, the Company may offer its shares of beneficial interest through public offerings registered with the SEC or through private offerings pursuant to one or more exemptions from registration under the Securities Act. In connection with such offerings, the Company may issue and sell the offered shares upon settlement of the offering or, alternatively, enter into forward sale agreements with respect to all or a portion of the sold in such public offerings, pursuant to which the offered shares are borrowed by the forward sale purchasers and the issuance of such shares takes place upon settlement of the applicable forward sale agreement in accordance with its terms.
On June 11, 2026, the Company completed an offering of
ATM Program
The Company has an at-the-market equity issuance program (“ATM Program”) that provides the Company with an efficient vehicle for raising public equity capital to fund its needs.
During the six months ended June 30, 2026, the Company physically settled
As of June 30, 2026, the Company had
The Company did not receive any proceeds at the time it entered into each of the respective forward sale agreements. The Company determined that the ATM forward sales agreements qualify for equity classification and are therefore exempt from derivative accounting. Accordingly, the ATM forward sales agreements were recorded at fair value at inception, which was determined to be zero, with no subsequent fair value adjustments required.
Common Shares and Units
During the six months ended June 30, 2026, the Company withheld
25
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Company recognized $
Share Repurchase Program
The Company maintains a share repurchase authorization of up to $
Dividends and Distributions
During each of the three months ended June 30, 2026 and 2025, the Company declared distributions of $
26
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Noncontrolling Interests
The following tables summarize the change in the noncontrolling interests for the three and six months ended June 30, 2026 and 2025 (dollars in thousands, except per unit data):
|
|
Noncontrolling |
|
|
Noncontrolling |
|
|
Total |
|
|
Redeemable Noncontrolling Interests (c) |
|
||||
Balance as of April 1, 2026 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Distributions declared of $ |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Net income (loss) for the three months ended June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Conversion of |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Other comprehensive income - unrealized loss on valuation of swap agreements |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustment of redeemable non-controlling interest to estimated redemption value |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Acquisition of noncontrolling interest (Note 10) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Reclassification of realized interest expense on swap agreements |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
City Point Loan accrued interest |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Noncontrolling interest contributions |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Noncontrolling interest distributions |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
||
Employee Long-term Incentive Plan Unit Awards |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reallocation of noncontrolling interests (d) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Balance as of June 30, 2026 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balance as of April 1, 2025 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Distributions declared of $ |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Net income (loss) for the three months ended June 30, 2025 |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Conversion of |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Other comprehensive income - unrealized gain on valuation of swap agreements |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
Reclassification of realized interest expense on swap agreements |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
City Point Loan accrued interest |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Noncontrolling interest contributions |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Noncontrolling interest distributions |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
||
Employee Long-term Incentive Plan Unit Awards |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reallocation of noncontrolling interests (d) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Balance as of June 30, 2025 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
27
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
|
|
Noncontrolling |
|
|
Noncontrolling |
|
|
Total |
|
|
Redeemable Noncontrolling Interests (c) |
|
||||
Balance as of January 1, 2026 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Distributions declared of $ |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Net income (loss) for the six months ended June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Conversion of |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Other comprehensive income - unrealized loss on valuation of swap agreements |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consolidation of previously unconsolidated investment |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reclassification of realized interest expense on swap agreements |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
||
Adjustment of redeemable non-controlling interest to estimated redemption value |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Acquisition of noncontrolling interest |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
City Point Loan accrued interest |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Noncontrolling interest contributions |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Noncontrolling interest distributions |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Employee Long-term Incentive Plan Unit Awards |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reallocation of noncontrolling interests (d) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balance as of June 30, 2026 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balance as of January 1, 2025 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Distributions declared of $ |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Net income (loss) for the six months ended June 30, 2025 |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Conversion of |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Other comprehensive income - unrealized gain on valuation of swap agreements |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
Consolidation of previously unconsolidated investment |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reclassification of realized interest expense on swap agreements |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
City Point Loan accrued interest |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Noncontrolling interest contributions |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Noncontrolling interest distributions |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
||
Employee Long-term Incentive Plan Unit Awards |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reallocation of noncontrolling interests (d) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balance as of June 30, 2025 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
28
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Redeemable Noncontrolling Interests
Williamsburg Portfolio
In connection with the Williamsburg Portfolio acquisition in February 2022, the venture partner has a one-time right to put its
City Point Loan
In August 2022, the Company provided a loan of $
During the three months ended June 30, 2026, the Company acquired the remaining interests of the other Fund II investors in City Point for total consideration of $
For the six months ended June 30, 2026, the Company recorded aggregate adjustments of $
8833 Beverly Boulevard
In July 2023, the Company entered into a limited partnership agreement to own and operate the 8833 Beverly Boulevard property. Following the formation of the partnership, the Company retained a
As of June 30, 2026, the Company recorded an adjustment of $
Henderson
In May 2026, the Company entered into a limited liability company agreement to own and operate the Henderson JV, a mixed-use ground-up development project located on N. Henderson Avenue in Dallas, Texas. The Company retained a
The venture partner holds a one-time right to require the Company to purchase all or a portion of the Henderson NCI for cash at fair value during the 24-month period following stabilization of the project. Following the expiration of that period, the Company may require the venture partner to sell its interest to the Company at fair value. Because redemption is exercisable at the option of the venture partner and is outside the Company’s control, the Henderson NCI is classified as Redeemable noncontrolling interests on the Company’s Condensed Consolidated Balance Sheets.
29
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The Henderson NCI is measured at the greater of its carrying amount or redemption value. Adjustments to redemption value are recognized through Additional Paid-in Capital when the redemption becomes probable. As of June 30, 2026,
Preferred OP Units
In 1999, the Operating Partnership issued
11. Leases
As Lessor
As of June 30, 2026, the Company was party to approximately
Lease terms generally range from
The following table presents the components of rental revenue, disaggregated into fixed and variable lease income (in thousands):
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Fixed lease revenue |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Variable lease revenue |
|
|
|
|
|
|
|
|
|
|
|
||||
Total rental revenue |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
The following table summarizes the Company’s scheduled future minimum rental revenues under non-cancelable tenant leases with remaining terms greater than one year, as of June 30, 2026. These amounts assume no new or renegotiated leases or exercise of renewal options not deemed reasonably certain (in thousands):
|
|
|
|
|
Year Ending December 31, |
|
Minimum Rental |
|
|
2026 (Remainder) |
|
$ |
|
|
2027 |
|
|
|
|
2028 |
|
|
|
|
2029 |
|
|
|
|
2030 |
|
|
|
|
Thereafter |
|
|
|
|
Total |
|
$ |
|
|
During the six months ended June 30, 2025, the Company recognized $
30
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
As Lessee
The following table summarizes the Company’s scheduled future minimum rental payments under non-cancelable leases as of June 30, 2026 (in thousands):
|
|
Minimum Rental Payments |
|
|||||
Year Ending December 31, |
|
Operating Leases (a) |
|
|
Finance |
|
||
2026 (Remainder) |
|
$ |
|
|
$ |
|
||
2027 |
|
|
|
|
|
|
||
2028 |
|
|
|
|
|
|
||
2029 |
|
|
|
|
|
|
||
2030 |
|
|
|
|
|
|
||
Thereafter |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Interest |
|
|
( |
) |
|
|
( |
) |
Total |
|
$ |
|
|
$ |
|
||
The following table summarizes additional lease cost information for the Company’s lessee arrangements (dollars in thousands):
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
||||||||||||
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
||||
Lease Cost |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Finance lease cost: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of right-of-use assets |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
||||
Interest on lease liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Subtotal |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating lease cost |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Variable lease cost |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total lease cost |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash Paid |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Payments of operating lease obligations - operating activities |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
||||
Payments of interest on finance lease obligations - operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Payments of finance lease obligations - financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
As of June 30, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Other Information |
|
|
|
|
|
|
||
Weighted-average remaining lease term - finance leases (years) |
|
|
|
|
|
|
||
Weighted-average remaining lease term - operating leases (years) |
|
|
|
|
|
|
||
Weighted-average discount rate - finance leases |
|
|
% |
|
|
% |
||
Weighted-average discount rate - operating leases |
|
|
% |
|
|
% |
||
During the six months ended June 30, 2025, the Company entered into a new corporate office lease and recorded a right-of-use assets - operating lease and corresponding lease liability - operating lease of $
12. Segment Reporting
The Company has identified
31
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The Company’s REIT Portfolio segment consists primarily of high-quality retail properties located primarily in high-barrier-to-entry, densely-populated metropolitan areas with a long-term investment horizon. The Company’s Investment Management segment holds primarily retail real estate in which the Company co-invests with high-quality institutional investors. The Company’s Structured Financing segment consists of earnings and expenses related to notes and mortgages receivable (Note 3).
Fees earned by the Company as the general partner or managing member through consolidated Investment Management entities are eliminated in the Company’s Condensed Consolidated Financial Statements and are not presented in the Company’s segments.
The following tables present selected financial information for each reportable segment (in thousands):
|
|
For the Three Months Ended June 30, 2026 |
|
|||||||||||||||||
|
|
REIT |
|
|
Investment |
|
|
Structured |
|
|
Unallocated |
|
|
Total |
|
|||||
Rental revenue |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Other revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation and amortization expenses |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Property operating expenses |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Real estate taxes |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
General and administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|||
Impairment charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gain (loss) on disposition of properties |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Equity in (losses) earnings of unconsolidated affiliates |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Realized and unrealized holding (losses) gains on investments and other |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Income tax provision |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|||
Net income |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Net loss attributable to redeemable noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income attributable to noncontrolling interests |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Net income attributable to Acadia shareholders |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
32
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
|
|
For the Three Months Ended June 30, 2025 |
|
|||||||||||||||||
|
|
REIT |
|
|
Investment |
|
|
Structured |
|
|
Unallocated |
|
|
Total |
|
|||||
Rental revenue |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Other revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation and amortization expenses |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Property operating expenses |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Real estate taxes |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
General and administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|||
Impairment charges |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|||
Operating income (loss) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Equity in losses of unconsolidated affiliates |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Interest expense |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Realized and unrealized holding (losses) gains on investments and other |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Income tax provision |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|||
Net income (loss) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
||
Net loss attributable to redeemable noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net loss attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income attributable to Acadia shareholders |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||
|
|
As of or for the Six Months Ended June 30, 2026 |
|
|||||||||||||||||
|
|
REIT |
|
|
Investment |
|
|
Structured |
|
|
Unallocated |
|
|
Total |
|
|||||
Rental revenue |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Other revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation and amortization expenses |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Property operating expenses |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Real estate taxes |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
General and administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|||
Impairment charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gain on disposition of properties |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Equity in (losses) earnings of unconsolidated affiliates |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Realized and unrealized holding (losses) gains on investments and other |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Income tax provision |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|||
Net income |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Net loss attributable to redeemable noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income attributable to noncontrolling interests |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Net income attributable to Acadia shareholders |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate at cost (a) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Total assets (a) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Cash paid for acquisition of real estate |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Cash paid for development and property improvement costs |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
33
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
|
|
As of or for the Six Months Ended June 30, 2025 |
|
|||||||||||||||||
|
|
REIT |
|
|
Investment |
|
|
Structured |
|
|
Unallocated |
|
|
Total |
|
|||||
Rental revenue |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Other revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation and amortization expenses |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Property operating expenses |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Real estate taxes |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
General and administrative expenses |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|||
Impairment charges |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|||
Operating income (loss) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Equity in earnings (losses) of unconsolidated affiliates |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Interest expense |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||
Loss on change in control |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Realized and unrealized holding losses on investments and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income tax provision |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|||
Net income (loss) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
||
Net loss attributable to redeemable noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net loss attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income attributable to Acadia shareholders |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate at cost (a) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Total assets (a) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Cash paid for acquisition of real estate |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Cash paid for development and property improvement costs |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
13. Share Incentive and Other Compensation
The Amended and Restated 2020 Share Incentive Plan (the “Amended and Restated 2020 Plan”), as approved by the Board and the Company’s shareholders, authorizes the issuance of up to
As of June 30, 2026, there was $
The total fair value of Restricted Shares that vested during the six months ended June 30, 2026 and the year ended December 31, 2025, was $
During the six months ended June 30, 2026, the Company issued
Additionally, the Company awarded
For valuation of the 2026 and 2025 performance-based award grants, a Monte Carlo simulation was used to estimate the fair values of the grants. The assumptions include volatility (
34
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The weighted-average grant date fair value for Restricted Shares and LTIP Units granted for the six months ended June 30, 2026 and the year ended December 31, 2025 were $
In addition, members of the Board have been issued shares and units under the Amended and Restated 2020 Plan. During the six months ended June 30, 2026, the Company issued
14. Earnings Per Common Share
The Company’s unvested LTIP Units are entitled to non-forfeitable dividend equivalent rights and are therefore considered participating securities. Accordingly, basic earnings per Common Share is computed using the two-class method. Diluted earnings per Common Share reflects the potential dilutive effect of Restricted Share Units issued under the Company’s Amended and Restated 2020 Plan (Note 13), and the shares issuable upon settlement of any outstanding forward sale agreements (Note 10), calculated using the treasury stock method. The assumed conversion of Common Operating Partnership Units is excluded from both basic and diluted earnings per Common Share, as the related income is reflected as noncontrolling interests and their conversion would have no net impact on diluted earnings per Common Share.
For the three and six months ended June 30, 2026, the Series A Preferred Operating Partnership Units were dilutive and are therefore included in the denominator for diluted earnings per Common Share. For the three and six months ended June 30, 2025, the Series A Preferred Operating Partnership Units were anti-dilutive and are therefore excluded from the computation of diluted earnings per Common Share.
35
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
(dollars in thousands, except per share data) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to Acadia shareholders |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Less: adjustment of redeemable non-controlling interest to estimated redemption value (Note 10) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Less: net income attributable to participating securities |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Income from continuing operations net of income attributable to participating securities for basic earnings per share |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares for basic earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Series A Preferred OP Units |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Employee unvested restricted shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assumed settlement of forward sales agreements (Note 10) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Denominator for diluted earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per Common Share from continuing operations attributable to Acadia shareholders |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Diluted earnings per Common Share from continuing operations attributable to Acadia shareholders |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Anti-Dilutive Shares Excluded from Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Series A Preferred OP Units |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Series A Preferred OP Units - Common share equivalent |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Series C Preferred OP Units |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Series C Preferred OP Units - Common share equivalent |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Restricted shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Shares outstanding under the forward sales agreement (Note 10) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
36
ACADIA REALTY TRUST AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
15. Variable Interest Entities
The Company consolidates certain VIEs in which it has determined it is the primary beneficiary. As of June 30, 2026, the Company had identified nine consolidated VIEs, including the Operating Partnership and the Funds.
Excluding the Operating Partnership and the Funds, the Company’s consolidated VIEs include in-service REIT Portfolio operating properties: the Williamsburg Portfolio, 239 Greenwich Avenue, 8833 Beverly Boulevard, the Renaissance Portfolio, and the Henderson Avenue Development Project. The following table presents the assets and liabilities of the consolidated VIEs included in the Condensed Consolidated Balance sheets (in thousands):
(in thousands) |
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
VIE ASSETS |
|
|
|
|
|
|
||
Operating real estate, net |
|
$ |
|
|
$ |
|
||
Investments in and advances to unconsolidated affiliates |
|
|
|
|
|
|
||
Other assets, net |
|
|
|
|
|
|
||
Right-of-use assets - operating leases, net |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
|
|
|
|
||
Restricted cash |
|
|
|
|
|
|
||
Rents receivable, net |
|
|
|
|
|
|
||
Assets of property held for sale |
|
|
|
|
|
|
||
Total VIE assets (a) |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
VIE LIABILITIES |
|
|
|
|
|
|
||
Mortgage and other notes payable, net |
|
$ |
|
|
$ |
|
||
Unsecured notes payable, net |
|
|
|
|
|
|
||
Accounts payable and other liabilities |
|
|
|
|
|
|
||
Lease liabilities - operating leases, net |
|
|
|
|
|
|
||
Total VIE liabilities (a) |
|
$ |
|
|
$ |
|
||
Unconsolidated VIEs
As of June 30, 2026, the Company had interests in two unconsolidated VIEs: 1238 Wisconsin Avenue and the Georgetown Portfolio. The Company’s investment in the assets of these unconsolidated VIEs was $
The Company holds a preferred equity investment in an unconsolidated VIE with a carrying value of $
16. Subsequent Events
In July 2026, the Company acquired a single-tenant retail building at 8800-8804 Melrose Avenue in West Hollywood, California for $
In July 2026, through its Structured Financing segment, the Company originated a note receivable and funded an initial advance of $
37
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
OVERVIEW
Acadia Realty Trust (the “Trust”, collectively with its consolidated subsidiaries, the “Company”, “Acadia”, “we”, “us” or “our”), a Maryland real estate investment trust (“REIT”), is a fully-integrated equity REIT focused on the ownership, acquisition, development, and management of retail properties located primarily in high-barrier-to-entry, supply-constrained, densely populated metropolitan areas in the United States.
The Company operates through two primary platforms:
REIT Portfolio: The REIT Portfolio consists of open-air and street retail properties located in premier urban retail corridors and select suburban markets characterized by strong demographics and limited new supply. These assets generate recurring rental revenues and benefit from contractual rent escalations and leasing activity.
Investment Management (“IM”): Through its Investment Management platform, the Company manages opportunistic and value-add retail real estate investments through its strategic opportunity funds (Fund II, Fund III, Fund IV, and Fund V) and select co-investment ventures. While Fund III, Fund IV and Fund V currently include institutional partner capital, Fund II is presently wholly owned by the Company and is being managed within the IM platform, with the potential for future third-party capital participation. From time to time, assets previously held in the Company’s strategic opportunity funds may be recapitalized or transitioned into new joint ventures with third-party partners as part of the portfolio lifecycle, while the Company retains an ownership interest and continues its role as operator and manager. The Company earns management fees and, in certain cases, incentive-based performance fees.
All of the Company’s assets are held by, and all of its operations are conducted through, Acadia Realty Limited Partnership (the “Operating Partnership”) and its subsidiaries. As of June 30, 2026, the Trust controlled approximately 96% of the Operating Partnership as its sole general partner.
As of June 30, 2026, the Company owned or had an ownership interest in 231 properties, including development or redevelopment projects (Note 1). The Company’s operating income is primarily derived from rental revenues from operating properties, including tenant expense recoveries, net of property operating and corporate overhead expenses.
In addition, the Company maintains a Structured Financing (“SF”) program through which it selectively invests in first mortgage loans and other real estate-backed notes.
The following table summarizes the Company’s wholly owned and partially owned retail properties and related physical occupancy as of June 30, 2026:
|
|
Number of Properties |
|
|
Operating Properties |
|
||||||||||
|
|
Development or |
|
|
Operating |
|
|
GLA |
|
|
Occupancy |
|
||||
REIT Portfolio: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Chicago Metro |
|
|
2 |
|
|
|
38 |
|
|
|
595,660 |
|
|
|
87.3 |
% |
New York Metro |
|
|
2 |
|
|
|
45 |
|
|
|
404,403 |
|
|
|
96.0 |
% |
Los Angeles Metro |
|
|
— |
|
|
|
2 |
|
|
|
23,757 |
|
|
|
83.2 |
% |
San Francisco Metro |
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Dallas Metro |
|
|
20 |
|
|
|
8 |
|
|
|
59,522 |
|
|
|
85.3 |
% |
Washington D.C. Metro |
|
|
— |
|
|
|
33 |
|
|
|
407,756 |
|
|
|
93.7 |
% |
Boston Metro |
|
|
— |
|
|
|
3 |
|
|
|
30,321 |
|
|
|
100.0 |
% |
South Florida Metro |
|
|
— |
|
|
|
1 |
|
|
|
10,118 |
|
|
|
100.0 |
% |
Suburban |
|
|
3 |
|
|
|
24 |
|
|
|
3,880,285 |
|
|
|
95.6 |
% |
Total REIT Portfolio |
|
|
29 |
|
|
|
154 |
|
|
|
5,411,822 |
|
|
|
94.4 |
% |
Acadia Share of Total REIT Portfolio |
|
|
29 |
|
|
|
154 |
|
|
|
5,151,064 |
|
|
|
94.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment Management: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fund II |
|
|
— |
|
|
|
1 |
|
|
|
529,545 |
|
|
|
86.7 |
% |
Fund III |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
Fund IV |
|
|
1 |
|
|
|
20 |
|
|
|
128,073 |
|
|
|
76.7 |
% |
Fund V |
|
|
— |
|
|
|
13 |
|
|
|
4,698,169 |
|
|
|
91.1 |
% |
Other |
|
|
— |
|
|
|
12 |
|
|
|
3,327,308 |
|
|
|
91.4 |
% |
Total Investment Management |
|
|
1 |
|
|
|
47 |
|
|
|
8,683,095 |
|
|
|
90.8 |
% |
Acadia Share of Total Investment Management |
|
|
1 |
|
|
|
47 |
|
|
|
2,072,316 |
|
|
|
89.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total REIT and Investment Management |
|
|
30 |
|
|
|
201 |
|
|
|
14,094,917 |
|
|
|
92.2 |
% |
Acadia Share of Total REIT and Investment Management |
|
|
30 |
|
|
|
201 |
|
|
|
7,223,380 |
|
|
|
93.1 |
% |
38
SIGNIFICANT ACTIVITIES DURING 2026
See Note 12 in the Notes to Condensed Consolidated Financial Statements for an overview of our three reportable segments: REIT Portfolio, Investment Management and Structured Financing. For purposes of the tables included below, these segments are abbreviated as “REIT”, “IM” and “SF”, respectively.
During the six months ended June 30, 2026, the Company completed a number of transactions across its REIT Portfolio and Investment Management segments reflecting continued portfolio growth and deepening of relationships with key institutional partners.
REIT Portfolio
Within the REIT Portfolio, the Company continued to selectively deploy capital into retail assets located in established, high-barrier markets. During six months ended June 30, 2026, the Company completed consolidated acquisitions totaling approximately $198.4 million, including:
These acquisitions were integrated into the Company’s existing REIT Portfolio and are consolidated (Note 2).
In July 2026, the Company acquired a single-tenant retail building at 8800-8804 Melrose Avenue in West Hollywood, California for $29.0 million, which was added to the REIT Portfolio. During the same period, the Company disposed of the parking garage at 1035 Third Avenue in New York, New York, a consolidated Fund IV Investment Management property, for $8.3 million (Note 16).
Investment Management
During the six months ended June 30, 2026, the Company completed several transactions through its Investment Management segment, consisting of equity investments in unconsolidated joint ventures and recapitalizations of existing assets (Note 2, Note 4).
In January 2026, the Company acquired a 20% equity interest in a joint venture that purchased the Shops at Skyview, a retail shopping center located in Queens, New York, for a total purchase price of $424.1 million. At closing, the joint venture secured a mortgage loan with a total commitment of $290.0 million, of which $277.0 million was funded at closing. Additionally, the Company provided a preferred equity investment of approximately $41.7 million. The Company’s equity contribution to the joint venture totaled approximately $22.5 million.
In February 2026, the Company completed a $435.8 million recapitalization of a seven-property, open-air retail portfolio. Six of the properties were previously held in Fund V, while one property (Avenue at West Cobb) was previously held in the Company’s wholly-owned portfolio. In connection with the transaction, the properties were contributed to two newly formed joint ventures and the Company retained a 20% non-controlling equity interest. Additionally, the Company provided seller financing to the Atlantic Portfolio joint venture in the form of a $27.5 million preferred equity investment. The transaction resulted in the deconsolidation of the properties and the recognition of a gain on disposition and deconsolidation of $112.3 million, of which the Company’s proportionate share was $22.1 million.
In March 2026, the Company completed a recapitalization of Pinewood Square, an open-air retail center in Lake Worth, Florida, with a gross transaction value of $68.4 million. The property was contributed to a newly formed joint venture, with the Company retaining a 20% non-controlling equity interest. The transaction resulted in the deconsolidation of the property and the recognition of a gain on deconsolidation of $4.1 million.
During the six months ended June 30, 2026, the Company completed consolidated property dispositions within its Investment Management platform totaling approximately $128.1 million, including the sale of Landstown Commons for $102.0 million, the sale of 1964 Union Street for $2.6 million and the sale of New Towne Center for $23.5 million (Note 2).
39
During the six months ended June 30, 2026, the Company completed unconsolidated property dispositions within its Investment Management platform totaling approximately $83.0 million, including the sale of 650 Bald Hill Road for $20.5 million, and the sale of Tri-City Plaza for $62.5 million (Note 4).
These transactions reflect the Company’s continued execution of its strategic objectives, including portfolio growth, balance sheet optimization, and the expansion of its Investment Management platform.
Financing and Capital Activity
In connection with the Investment Management disposition and recapitalization activity, the Company retired approximately $334.3 million of property-level mortgage loans associated with assets sold or contributed to joint ventures. The Company also terminated related interest rate hedges in conjunction with these repayments.
On April 17, 2026, we entered into the Fourth Amended and Restated Credit Facility, which extended the maturity of our $525.0 million revolving credit facility (the size of which remained unchanged) from April 15, 2028 to April 17, 2030 (subject to two six-month extension options), increased our existing $400.0 million term loan to $512.5 million and extended its maturity from April 15, 2028 to April 17, 2031, and provided for a new $137.5 million term loan maturing April 17, 2031. The existing $250.0 million term loan maturing May 29, 2030 remained unchanged. The Fourth Amended and Restated Credit Facility also includes an accordion feature permitting the Operating Partnership, at its option and subject to customary conditions, to increase total capacity to up to $2.0 billion. We believe the refinancing extended our weighted average debt maturity and enhanced our liquidity position (Note 7).
Common Share Activity
On June 11, 2026, we completed a forward equity offering of 9,000,000 Common Shares at an initial forward sale price of $21.80 per share. In July 2026, the underwriters partially exercised their over-allotment option for an additional 242,996 Common Shares. We did not receive any proceeds at the time of the offering and related underwriters’ option exercise; upon settlement of the forward sale agreements, which must occur within one-year of the effective date, we expect to receive net proceeds of approximately $201.1 million, which we intend to use to fund acquisition opportunities, repay outstanding indebtedness, and for general corporate purposes. We believe the offering provides additional flexibility to manage the timing of our capital raising activities relative to our capital needs.
During the six months ended June 30, 2026, we settled 6,209,562 outstanding forward shares under the Company’s $500.0 million “at-the-market” program (the “ATM Program”) and received proceeds of $128.0 million. This included settlements of $55.9 million in March and $72.1 million in June. Proceeds were used to reduce outstanding borrowings and fund investment activity (Note 10).
Economic and Other Considerations
Macroeconomic conditions, including inflationary pressures, elevated energy prices, higher interest rates, and broader geopolitical developments, continue to present risks for our business and the businesses of our tenants. While inflation has moderated from prior periods, certain operating and capital costs remain elevated. However, the majority of our leases include contractual rent escalations and expense recovery provisions, which help mitigate the impact of inflation on operating results. We also seek to manage operating expenses through cost-conscious property management practices and the use of multi-year service contracts where appropriate.
We seek to drive value across our portfolio through leasing momentum, active development and redevelopment projects, and strategic deployment of capital into high-quality assets. The Company manages its exposure to interest rate fluctuations primarily through the use of fixed-rate debt and interest rate derivative instruments, including interest rate swaps and caps that are designated as hedging instruments (Note 8). While higher interest rates have increased borrowing costs, we believe our capital structure and hedging strategy provide meaningful protection against interest rate volatility.
In addition, evolving trade policies, tariffs, sanctions and related geopolitical developments could impact certain tenants’ operations or consumer demand in our markets. The ultimate impact of these factors remains uncertain, and the Company continues to monitor these developments closely.
40
RESULTS OF OPERATIONS
Comparison of Results for the Three Months Ended June 30, 2026 to the Three Months Ended June 30, 2025
The results of operations by reportable segment for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 are summarized in the table below (in millions, totals may not add due to rounding):
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
|
Change |
|
|||||||||||||||||||||||||||||||||||||||
|
|
REIT |
|
|
IM |
|
|
SF |
|
|
Total |
|
|
REIT |
|
|
IM |
|
|
SF |
|
|
Total |
|
|
REIT |
|
|
IM |
|
|
SF |
|
|
Total |
|
||||||||||||
Rental revenue |
|
$ |
65.9 |
|
|
$ |
25.2 |
|
|
$ |
— |
|
|
$ |
91.2 |
|
|
$ |
57.7 |
|
|
$ |
40.6 |
|
|
$ |
— |
|
|
$ |
98.3 |
|
|
$ |
8.2 |
|
|
$ |
(15.4 |
) |
|
$ |
— |
|
|
$ |
(7.1 |
) |
Other revenue |
|
|
1.0 |
|
|
|
3.2 |
|
|
|
— |
|
|
|
4.2 |
|
|
|
0.6 |
|
|
|
1.7 |
|
|
|
— |
|
|
|
2.3 |
|
|
|
0.4 |
|
|
|
1.5 |
|
|
|
— |
|
|
|
1.9 |
|
Depreciation and amortization |
|
|
(24.0 |
) |
|
|
(11.2 |
) |
|
|
— |
|
|
|
(35.2 |
) |
|
|
(22.4 |
) |
|
|
(16.8 |
) |
|
|
— |
|
|
|
(39.3 |
) |
|
|
(1.6 |
) |
|
|
5.6 |
|
|
|
— |
|
|
|
4.1 |
|
Property operating expenses |
|
|
(10.0 |
) |
|
|
(7.1 |
) |
|
|
— |
|
|
|
(17.0 |
) |
|
|
(8.6 |
) |
|
|
(8.9 |
) |
|
|
— |
|
|
|
(17.5 |
) |
|
|
(1.4 |
) |
|
|
1.8 |
|
|
|
— |
|
|
|
0.5 |
|
Real estate taxes |
|
|
(10.0 |
) |
|
|
(2.7 |
) |
|
|
— |
|
|
|
(12.7 |
) |
|
|
(8.8 |
) |
|
|
(4.5 |
) |
|
|
— |
|
|
|
(13.3 |
) |
|
|
(1.2 |
) |
|
|
1.8 |
|
|
|
— |
|
|
|
0.6 |
|
General and administrative expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11.8 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11.5 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.3 |
) |
Impairment charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(18.2 |
) |
|
|
— |
|
|
|
(18.2 |
) |
|
|
— |
|
|
|
18.2 |
|
|
|
— |
|
|
|
18.2 |
|
Gain (loss) on disposition of properties |
|
|
(0.4 |
) |
|
|
4.4 |
|
|
|
— |
|
|
|
4.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
|
|
4.4 |
|
|
|
— |
|
|
|
4.0 |
|
Operating income |
|
|
22.6 |
|
|
|
11.8 |
|
|
|
— |
|
|
|
22.7 |
|
|
|
18.4 |
|
|
|
(6.1 |
) |
|
|
— |
|
|
|
0.8 |
|
|
|
4.2 |
|
|
|
17.9 |
|
|
|
— |
|
|
|
21.9 |
|
Interest income |
|
|
— |
|
|
|
— |
|
|
|
6.6 |
|
|
|
6.6 |
|
|
|
— |
|
|
|
— |
|
|
|
6.4 |
|
|
|
6.4 |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
Equity in (losses) earnings of unconsolidated affiliates |
|
|
(0.1 |
) |
|
|
14.0 |
|
|
|
— |
|
|
|
13.9 |
|
|
|
(0.5 |
) |
|
|
(3.7 |
) |
|
|
— |
|
|
|
(4.2 |
) |
|
|
0.4 |
|
|
|
17.7 |
|
|
|
— |
|
|
|
18.1 |
|
Interest expense |
|
|
(12.1 |
) |
|
|
(8.1 |
) |
|
|
— |
|
|
|
(20.1 |
) |
|
|
(9.6 |
) |
|
|
(14.0 |
) |
|
|
— |
|
|
|
(23.6 |
) |
|
|
(2.5 |
) |
|
|
5.9 |
|
|
|
— |
|
|
|
3.5 |
|
Realized and unrealized holding (losses) gains on investments and other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
|
|
— |
|
|
|
0.4 |
|
|
|
— |
|
|
|
0.4 |
|
|
|
— |
|
|
|
(0.4 |
) |
|
|
— |
|
Income tax provision |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net income (loss) |
|
|
10.4 |
|
|
|
17.8 |
|
|
|
6.6 |
|
|
|
22.8 |
|
|
|
8.0 |
|
|
|
(23.9 |
) |
|
|
6.7 |
|
|
|
(20.9 |
) |
|
|
2.4 |
|
|
|
41.7 |
|
|
|
(0.1 |
) |
|
|
43.7 |
|
Net loss (income) attributable to redeemable noncontrolling interests |
|
|
— |
|
|
|
1.0 |
|
|
|
— |
|
|
|
1.0 |
|
|
|
— |
|
|
|
1.7 |
|
|
|
— |
|
|
|
1.7 |
|
|
|
— |
|
|
|
(0.7 |
) |
|
|
— |
|
|
|
(0.7 |
) |
Net (income) loss attributable to noncontrolling interests |
|
|
(0.4 |
) |
|
|
(12.3 |
) |
|
|
— |
|
|
|
(12.8 |
) |
|
|
0.1 |
|
|
|
21.0 |
|
|
|
— |
|
|
|
21.2 |
|
|
|
(0.5 |
) |
|
|
(33.3 |
) |
|
|
— |
|
|
|
(34.0 |
) |
Net income attributable to Acadia shareholders |
|
$ |
10.0 |
|
|
$ |
6.4 |
|
|
$ |
6.6 |
|
|
$ |
11.0 |
|
|
$ |
8.1 |
|
|
$ |
(1.1 |
) |
|
$ |
6.7 |
|
|
$ |
2.0 |
|
|
$ |
1.9 |
|
|
$ |
7.5 |
|
|
$ |
(0.1 |
) |
|
$ |
9.0 |
|
REIT Portfolio
Net income attributable to Acadia shareholders for the REIT Portfolio increased $1.9 million compared to the prior year period.
Rental revenue increased $8.2 million, primarily reflecting $4.5 million from acquisitions completed during 2025 and 2026 and $3.0 million from tenant lease-up activity.
Depreciation and amortization increased $1.6 million, property operating expenses increased $1.4 million, and real estate taxes increased $1.2 million, primarily due to new property acquisitions in 2026 and 2025.
Interest expense increased $2.5 million, primarily due to higher average outstanding borrowings associated with acquisitions completed during 2025 and 2026.
Investment Management
(all amounts below are consolidated amounts and are not representative of our proportionate share)
Net income attributable to Acadia shareholders for Investment Management increased $7.5 million compared to the prior year period.
Rental revenue decreased $15.4 million primarily due to reduced rental income following property dispositions and recapitalization activity within Fund V completed in 2026.
Other revenue increased $1.5 million primarily due to higher fee income from acquisitions completed during 2025 and 2026.
Depreciation and amortization, property operating expenses and real estate taxes decreased $5.6 million, $1.8 million, and $1.8 million, respectively, primarily due to the Fund V recapitalization and the disposition of Landstown Commons in 2026.
Equity in earnings of unconsolidated affiliates increased $17.7 million primarily due to the gain on sale of Tri-City Plaza, and gain on disposition of properties increased $4.4 million primarily due to the sale of New Towne Center, both completed in 2026.
41
Results also benefited from the absence of an $18.2 million impairment charge recognized in the prior year period.
Interest expense decreased $5.9 million, primarily due to the Fund V recapitalization and disposition activity completed in 2026.
Net income attributable to noncontrolling interests increased $33.3 million reflecting the noncontrolling interests' share of the variances discussed above. Net income attributable to noncontrolling interests in Investment Management includes asset management fees earned by the Company of $1.7 million for the three months ended June 30, 2026, compared to $2.4 million for the prior year period.
Unallocated
The Company does not allocate general and administrative expenses and income taxes to its reportable segments. These unallocated amounts are depicted in the table above under the headings labeled “Total.”
Comparison of Results for the Six Months Ended June 30, 2026 to the Six Months Ended June 30, 2025
The results of operations by reportable segment for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, are summarized in the table below (in millions, totals may not add due to rounding):
|
|
Six Months Ended |
|
|
Six Months Ended |
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
|
Change |
|
|||||||||||||||||||||||||||||||||||||||
|
|
REIT |
|
|
IM |
|
|
SF |
|
|
Total |
|
|
REIT |
|
|
IM |
|
|
SF |
|
|
Total |
|
|
REIT |
|
|
IM |
|
|
SF |
|
|
Total |
|
||||||||||||
Rental revenue |
|
$ |
128.6 |
|
|
$ |
61.2 |
|
|
$ |
— |
|
|
$ |
189.8 |
|
|
$ |
121.5 |
|
|
$ |
79.5 |
|
|
$ |
— |
|
|
$ |
200.9 |
|
|
$ |
7.1 |
|
|
$ |
(18.3 |
) |
|
$ |
— |
|
|
$ |
(11.1 |
) |
Other revenue |
|
|
1.6 |
|
|
|
7.0 |
|
|
|
— |
|
|
|
8.7 |
|
|
|
1.3 |
|
|
|
2.8 |
|
|
|
— |
|
|
|
4.0 |
|
|
|
0.3 |
|
|
|
4.2 |
|
|
|
— |
|
|
|
4.7 |
|
Depreciation and amortization |
|
|
(48.3 |
) |
|
|
(27.0 |
) |
|
|
— |
|
|
|
(75.3 |
) |
|
|
(46.1 |
) |
|
|
(32.6 |
) |
|
|
— |
|
|
|
(78.7 |
) |
|
|
(2.2 |
) |
|
|
5.6 |
|
|
|
— |
|
|
|
3.4 |
|
Property operating expenses |
|
|
(20.3 |
) |
|
|
(15.0 |
) |
|
|
— |
|
|
|
(35.3 |
) |
|
|
(18.2 |
) |
|
|
(17.6 |
) |
|
|
— |
|
|
|
(35.8 |
) |
|
|
(2.1 |
) |
|
|
2.6 |
|
|
|
— |
|
|
|
0.5 |
|
Real estate taxes |
|
|
(19.4 |
) |
|
|
(6.3 |
) |
|
|
— |
|
|
|
(25.7 |
) |
|
|
(17.7 |
) |
|
|
(8.9 |
) |
|
|
— |
|
|
|
(26.6 |
) |
|
|
(1.7 |
) |
|
|
2.6 |
|
|
|
— |
|
|
|
0.9 |
|
General and administrative expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(27.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(23.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4.0 |
) |
Impairment charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(24.6 |
) |
|
|
— |
|
|
|
(24.6 |
) |
|
|
— |
|
|
|
24.6 |
|
|
|
— |
|
|
|
24.6 |
|
Gain on disposition of properties |
|
|
(0.4 |
) |
|
|
146.5 |
|
|
|
— |
|
|
|
146.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
|
|
146.5 |
|
|
|
— |
|
|
|
146.1 |
|
Operating income (loss) |
|
|
41.8 |
|
|
|
166.5 |
|
|
|
— |
|
|
|
181.2 |
|
|
|
40.7 |
|
|
|
(1.5 |
) |
|
|
— |
|
|
|
16.1 |
|
|
|
1.1 |
|
|
|
168.0 |
|
|
|
— |
|
|
|
165.1 |
|
Interest income |
|
|
— |
|
|
|
— |
|
|
|
11.3 |
|
|
|
11.3 |
|
|
|
— |
|
|
|
— |
|
|
|
12.5 |
|
|
|
12.5 |
|
|
|
— |
|
|
|
— |
|
|
|
(1.2 |
) |
|
|
(1.2 |
) |
Equity in earnings (losses) of unconsolidated affiliates |
|
|
— |
|
|
|
12.5 |
|
|
|
— |
|
|
|
12.4 |
|
|
|
(0.2 |
) |
|
|
(5.7 |
) |
|
|
— |
|
|
|
(5.9 |
) |
|
|
0.2 |
|
|
|
18.2 |
|
|
|
— |
|
|
|
18.3 |
|
Interest expense |
|
|
(24.4 |
) |
|
|
(17.8 |
) |
|
|
— |
|
|
|
(42.2 |
) |
|
|
(18.9 |
) |
|
|
(27.9 |
) |
|
|
— |
|
|
|
(46.9 |
) |
|
|
(5.5 |
) |
|
|
10.1 |
|
|
|
— |
|
|
|
4.7 |
|
Loss on change in control |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9.6 |
) |
|
|
— |
|
|
|
— |
|
|
|
(9.6 |
) |
|
|
9.6 |
|
|
|
— |
|
|
|
— |
|
|
|
9.6 |
|
Realized and unrealized holding (losses) gains on investments and other |
|
|
(0.6 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.6 |
) |
|
|
1.4 |
|
|
|
— |
|
|
|
0.2 |
|
|
|
1.6 |
|
|
|
(2.0 |
) |
|
|
— |
|
|
|
(0.2 |
) |
|
|
(2.2 |
) |
Income tax provision |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Net income (loss) |
|
|
16.7 |
|
|
|
161.1 |
|
|
|
11.3 |
|
|
|
161.9 |
|
|
|
13.3 |
|
|
|
(35.1 |
) |
|
|
12.6 |
|
|
|
(32.6 |
) |
|
|
3.4 |
|
|
|
196.2 |
|
|
|
(1.3 |
) |
|
|
194.5 |
|
Net loss (income) attributable to redeemable noncontrolling interests |
|
|
— |
|
|
|
1.7 |
|
|
|
— |
|
|
|
1.7 |
|
|
|
— |
|
|
|
3.4 |
|
|
|
— |
|
|
|
3.4 |
|
|
|
— |
|
|
|
(1.7 |
) |
|
|
— |
|
|
|
(1.7 |
) |
Net (income) loss attributable to noncontrolling interests |
|
|
(1.7 |
) |
|
|
(120.4 |
) |
|
|
— |
|
|
|
(122.1 |
) |
|
|
0.3 |
|
|
|
32.4 |
|
|
|
— |
|
|
|
32.8 |
|
|
|
(2.0 |
) |
|
|
(152.8 |
) |
|
|
— |
|
|
|
(154.9 |
) |
Net income (loss) attributable to Acadia shareholders |
|
$ |
15.1 |
|
|
$ |
42.4 |
|
|
$ |
11.3 |
|
|
$ |
41.5 |
|
|
$ |
13.7 |
|
|
$ |
0.7 |
|
|
$ |
12.6 |
|
|
$ |
3.6 |
|
|
$ |
1.4 |
|
|
$ |
41.7 |
|
|
$ |
(1.3 |
) |
|
$ |
37.9 |
|
REIT Portfolio
Net income attributable to Acadia shareholders for the REIT Portfolio increased $1.4 million compared to the prior year period.
Rental revenue increased $7.1 million, primarily reflecting $7.6 million from acquisitions completed during 2025 and 2026, $6.0 million from tenant lease-up activity, and $2.1 million from the 2025 consolidation of the Renaissance Portfolio, partially offset by the absence of $8.4 million of non-recurring rental and termination income recognized in the prior year period from Whole Foods at City Center.
Depreciation and amortization, property operating expenses, and real estate taxes increased $2.2 million, $2.1 million, and $1.7 million, respectively, primarily due to acquired properties.
Interest expense increased $5.5 million due to higher average outstanding borrowings associated with acquisitions completed during 2025 and 2026.
Results also benefited from the absence of a $9.6 million loss on change in control recognized in the prior year period upon the consolidation of the Renaissance Portfolio.
42
Realized and unrealized holding gains (losses) decreased $2.0 million due to changes in mark-to-market adjustments on marketable securities that were liquidated in 2025.
Investment Management
(all amounts below are consolidated amounts and are not representative of our proportionate share)
Net income attributable to Acadia shareholders for Investment Management increased $41.7 million compared to the prior year period.
Rental revenue decreased $18.3 million primarily due to Fund V property dispositions completed in 2026.
Other revenue increased $4.2 million primarily due to higher fee income from acquisitions completed during 2025 and 2026.
Depreciation and amortization, property operating expenses and real estate taxes decreased $5.6 million, $2.6 million and $2.6 million, respectively, primarily due to Fund V property dispositions completed in 2026.
Gain on disposition of properties increased $146.5 million primarily due to the Fund V recapitalization and the dispositions of Landstown Commons, New Towne Center and Avenue at West Cobb.
Equity in earnings of unconsolidated affiliates increased $18.2 million primarily due to the gain on sale of Tri-City Plaza in 2026.
Results also benefited from the absence of $24.6 million of impairment charges recognized in the prior year period.
Interest expense decreased $10.1 million primarily due to the Fund V recapitalization and disposition activity completed in 2026.
Net income attributable to noncontrolling interests increased $152.8 million reflecting the noncontrolling interests' share of the variances discussed above.
Structured Financing
Interest income from the Structured Financing portfolio decreased $1.2 million to $11.3 million primarily due to a lower average outstanding investment balance following repayments received during 2025, including the partial repayment of the City Point Loan in 2025.
Unallocated
The Company does not allocate general and administrative expenses and income taxes to its reportable segments. These unallocated amounts are depicted in the table above under the headings labeled “Total.”
General and administrative expenses increased $4.0 million to $27.1 million primarily due to higher compensation, legal and transaction-related costs. The increase also included accelerated compensation expense resulting from a modification of vesting provisions associated with a change in expected service period
NON-GAAP FINANCIAL MEASURES
Net Property Operating Income
The following discussion of net property operating income (“NOI”) and rent spreads on new and renewal leases includes the activity from both our consolidated and our pro-rata share of unconsolidated properties within our REIT Portfolio. We do not consider NOI and rent spreads to be meaningful measures for our Investment Management investments, as Investment Management invests primarily in properties that typically require significant leasing and development, and is primarily comprised of finite-life investment vehicles.
We use NOI, a non-GAAP financial measure, to evaluate the performance of our properties. We define NOI as income from our REIT portfolio real estate, less our property operating expenses, excluding lease termination income received from tenants and other amounts such as above- or below-market rent, and straight-line rent. We consider NOI and rent spreads on new and renewal leases for our REIT Portfolio to be appropriate supplemental disclosures of portfolio operating performance due to their widespread acceptance and use within the REIT investor and analyst communities. NOI and rent spreads on new and renewal leases are presented to assist investors in analyzing our property performance; however, our method of calculating these may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
43
A reconciliation of consolidated operating income to net operating income - REIT Portfolio follows (in thousands):
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consolidated operating income |
|
$ |
22,674 |
|
|
$ |
760 |
|
|
$ |
181,185 |
|
|
$ |
16,084 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
General and administrative |
|
|
11,782 |
|
|
|
11,532 |
|
|
|
27,085 |
|
|
|
23,129 |
|
Depreciation and amortization |
|
|
35,162 |
|
|
|
39,269 |
|
|
|
75,317 |
|
|
|
78,709 |
|
Impairment charges |
|
|
— |
|
|
|
18,190 |
|
|
|
— |
|
|
|
24,640 |
|
Gain on disposition of properties |
|
|
(3,969 |
) |
|
|
— |
|
|
|
(146,117 |
) |
|
|
— |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Above/below-market rent, straight-line rent and other accounts (a) |
|
|
(5,556 |
) |
|
|
(3,194 |
) |
|
|
(12,541 |
) |
|
|
(5,906 |
) |
Termination income (b) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,366 |
) |
Consolidated NOI |
|
|
60,093 |
|
|
|
66,557 |
|
|
|
124,929 |
|
|
|
128,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Redeemable noncontrolling interest in consolidated NOI |
|
|
(1,659 |
) |
|
|
(1,376 |
) |
|
|
(3,499 |
) |
|
|
(3,264 |
) |
Noncontrolling interest in consolidated NOI |
|
|
(10,244 |
) |
|
|
(19,489 |
) |
|
|
(25,241 |
) |
|
|
(37,144 |
) |
Less: Operating Partnership's interest in Investment Management NOI included above |
|
|
(4,701 |
) |
|
|
(7,936 |
) |
|
|
(12,243 |
) |
|
|
(14,683 |
) |
Add: Operating Partnership's share of unconsolidated joint ventures NOI (c) |
|
|
1,641 |
|
|
|
873 |
|
|
|
2,999 |
|
|
|
2,160 |
|
REIT Portfolio NOI |
|
$ |
45,130 |
|
|
$ |
38,629 |
|
|
$ |
86,945 |
|
|
$ |
75,359 |
|
We also use same-property NOI (“Same-Property NOI”), a non-GAAP financial measure, to evaluate the performance of our properties. Same-Property NOI includes REIT Portfolio properties that we owned for both the current and prior periods presented, but excludes those properties which we acquired, sold or expected to sell, redeveloped and developed during these periods. The following table summarizes Same-Property NOI for our REIT Portfolio (dollars in thousands):
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
REIT Portfolio NOI |
|
$ |
45,130 |
|
|
$ |
38,629 |
|
|
$ |
86,945 |
|
|
$ |
75,359 |
|
Less properties excluded from Same-Property NOI |
|
|
(5,566 |
) |
|
|
(2,243 |
) |
|
|
(8,538 |
) |
|
|
(2,295 |
) |
Same-Property NOI |
|
$ |
39,564 |
|
|
$ |
36,386 |
|
|
$ |
78,407 |
|
|
$ |
73,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Percent change from prior year period |
|
|
8.7 |
% |
|
|
|
|
|
7.3 |
% |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Components of Same-Property NOI: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Same-Property Revenues |
|
$ |
54,573 |
|
|
$ |
50,560 |
|
|
$ |
109,283 |
|
|
$ |
102,002 |
|
Same-Property Operating Expenses |
|
|
(15,009 |
) |
|
|
(14,174 |
) |
|
|
(30,876 |
) |
|
|
(28,938 |
) |
Same-Property NOI |
|
$ |
39,564 |
|
|
$ |
36,386 |
|
|
$ |
78,407 |
|
|
$ |
73,064 |
|
44
Rent Spreads on REIT Portfolio New and Renewal Leases
The following table summarizes rent spreads on both a cash basis and straight-line basis for new and renewal leases based on leases executed within our REIT Portfolio for the periods presented. Cash basis represents a comparison of rent most recently paid on the previous lease as compared to the initial rent paid on the new lease. Straight-line basis represents a comparison of rents as adjusted for contractual escalations, abated rent, and lease incentives for the same comparable leases. The table below includes embedded option renewals for which the renewed rent was equal to or approximated existing base rent.
|
|
Three Months Ended June 30, 2026 |
|
Six Months Ended June 30, 2026 |
||||
REIT Portfolio New and Renewal Leases |
|
Cash Basis |
|
Straight- |
|
Cash Basis |
|
Straight- |
Number of new and renewal leases executed |
|
10 |
|
10 |
|
22 |
|
22 |
GLA commencing |
|
18,758 |
|
18,758 |
|
201,132 |
|
201,132 |
New base rent |
|
$194.20 |
|
$214.30 |
|
$59.70 |
|
$63.99 |
Expiring base rent |
|
$109.26 |
|
$108.25 |
|
$47.51 |
|
$45.89 |
Percent growth in base rent |
|
77.7% |
|
98.0% |
|
25.7% |
|
39.4% |
Average cost per square foot (a) |
|
$134.46 |
|
$134.46 |
|
$32.96 |
|
$32.96 |
Weighted average lease term (years) |
|
6.0 |
|
6.0 |
|
6.0 |
|
6.0 |
(a) The average cost per square foot includes tenant improvement costs, leasing commissions, and tenant allowances.
Funds from Operations
We consider funds from operations (“FFO”) as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) to be an appropriate supplemental disclosure of operating performance for an equity REIT due to its widespread acceptance and use within the REIT and analyst communities. FFO is presented to assist investors in analyzing our performance. It is helpful as it excludes various items included in net income that are not indicative of the operating performance, such as gains (losses) from sales of depreciated property, depreciation and amortization, and impairment of real estate. Our method of calculating FFO may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. FFO does not represent cash generated from operations as defined by accounting principles generally accepted in the United States (“GAAP”) and is not indicative of cash available to fund all cash needs, including distributions. It should not be considered as an alternative to net income for the purpose of evaluating our performance or to cash flows as a measure of liquidity. Consistent with the NAREIT definition, we define FFO as net income (computed in accordance with GAAP), excluding gains (losses) from sales of depreciated property and impairment of depreciable real estate assets related to the Company’s main business and land held for the development of property for its operating portfolio, plus depreciation and amortization, after adjustments for unconsolidated partnerships and joint ventures. Also consistent with NAREIT’s definition of FFO, the Company has elected to include gains and losses incidental to its main business in FFO. A reconciliation of net income attributable to Acadia shareholders to FFO follows (dollars in thousands, except per share amounts):
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income attributable to Acadia shareholders |
|
$ |
11,038 |
|
|
$ |
1,963 |
|
|
$ |
41,515 |
|
|
$ |
3,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation of real estate and amortization of leasing costs (net of |
|
|
35,113 |
|
|
|
31,665 |
|
|
|
70,964 |
|
|
|
63,272 |
|
Impairment charges (net of noncontrolling interests' share) |
|
|
— |
|
|
|
4,185 |
|
|
|
— |
|
|
|
5,768 |
|
Net gain on disposition of properties (net of noncontrolling interests' share) |
|
|
(3,601 |
) |
|
|
86 |
|
|
|
(34,555 |
) |
|
|
86 |
|
Loss on change in control |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,622 |
|
Income attributable to Common OP Unit holders |
|
|
580 |
|
|
|
108 |
|
|
|
2,076 |
|
|
|
204 |
|
Distributions - Preferred OP Units |
|
|
5 |
|
|
|
67 |
|
|
|
10 |
|
|
|
134 |
|
Funds from operations attributable to Common Shareholders and |
|
$ |
43,135 |
|
|
$ |
38,074 |
|
|
$ |
80,010 |
|
|
$ |
82,657 |
|
45
LIQUIDITY AND CAPITAL RESOURCES
Uses of Liquidity and Cash Requirements
Generally, our principal uses of liquidity are (i) distributions to our shareholders and OP Unit holders, (ii) investments which include the funding of capital committed to our Investment Management platform and property acquisitions and development/re-tenanting activities within our REIT Portfolio, (iii) distributions to our Investment Management investors, (iv) debt service and loan repayments and (v) share repurchases.
Distributions
In order to qualify as a REIT for federal income tax purposes, we must distribute at least 90% of our taxable income to our shareholders. During the six months ended June 30, 2026, we paid dividends and distributions on our Common Shares and preferred units of limited partnership interest (“Preferred OP Units”) totaling $56.8 million.
Investments
As previously discussed, during the six months ended June 30, 2026, we deployed approximately $252.9 million in cash outlays related to acquisitions within our REIT Portfolio and equity investments and recapitalizations completed through our Investment Management platform.
Structured Financing Investments
During the six months ended June 30, 2026, we provided advances under preferred equity investments aggregating to $69.3 million (Note 4).
Capital Commitments
As of June 30, 2026, our share of the remaining capital commitments to the Funds aggregated $11.0 million as follows:
We do not have any additional capital commitments to the Funds other than the remaining amounts described above.
Additionally, the Company has committed to fund tenant improvements under executed leases totaling approximately $63.3 million and $44.1 million, as of June 30, 2026 and December 31, 2025, respectively. The Company’s share of these obligations is approximately $46.6 million and $37.1 million, respectively (Note 9).
Development Activities
During the six months ended June 30, 2026, capitalized costs associated with development activities totaled $27.2 million (Note 2). As of June 30, 2026, we estimated total cost to complete development and redevelopment projects through 2028 was approximately $90.7 million to $128.4 million, respectively. These estimates exclude assets for which redevelopment or development plans are still being evaluated and for which costs are not yet determinable.
Substantially all remaining development and redevelopment costs are discretionary, other than the construction and tenant improvement commitments disclosed in Note 9, and could be affected by various risks and uncertainties, including, but not limited to, the effects of the current inflationary environment, elevated interest rates, global macroeconomic conditions, the imposition of tariffs and other risks detailed in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025.
46
Debt
A summary of our consolidated debt, which includes the full amount of Investment Management related obligations and excludes our pro rata share of debt at our unconsolidated subsidiaries, is as follows (in thousands):
|
|
June 30, |
|
|
December 31, |
|
||
|
|
2026 |
|
|
2025 |
|
||
|
|
|
|
|
|
|
||
Total Debt - Fixed and Effectively Fixed Rate |
|
$ |
1,284,640 |
|
|
$ |
1,502,753 |
|
Total Debt - Variable Rate |
|
|
367,684 |
|
|
|
370,614 |
|
|
|
|
1,652,324 |
|
|
|
1,873,367 |
|
Net unamortized debt issuance costs |
|
|
(15,780 |
) |
|
|
(11,387 |
) |
Unamortized premium |
|
|
474 |
|
|
|
926 |
|
Total Indebtedness |
|
$ |
1,637,018 |
|
|
$ |
1,862,906 |
|
As of June 30, 2026, our consolidated indebtedness aggregated $1,652.3 million, excluding $0.5 million of unamortized premium and $15.8 million of net unamortized loan costs, and was secured by 35 properties and related tenant leases. Maturities on our outstanding indebtedness ranged from November 6, 2026 to April 15, 2035, excluding available extension options.
Taking into consideration $1,034.2 million of notional principal under variable-to-fixed interest rate swap agreements currently in effect, $1,284.6 million, or 77.7%, of the Company’s consolidated debt was fixed at a weighted-average interest rate of 4.52%, and $367.7 million, or 22.3%, was floating at a weighted-average interest rate of 5.13% as of June 30, 2026. Variable-rate debt included $32.2 million subject to interest rate cap agreements.
Without regard to available extension options, as of June 30, 2026, we had (i) $159.9 million of consolidated debt maturing in 2026 at a weighted-average interest rate of 5.88%, (ii) $1.9 million of scheduled principal amortization due during the remainder of 2026, and (iii) $31.5 million representing the Company’s pro-rata share of scheduled principal payments and maturities on unconsolidated debt during 2026. In addition, $160.3 million of consolidated debt and $44.8 million representing the Company’s pro-rata share of unconsolidated debt will mature by March 31, 2027.
The Company has extension options on consolidated debt aggregating $160.3 million maturing in 2026 and $48.5 million maturing in 2027; however, there can be no assurance that the Company will be able to successfully execute any or all of its available extension options. With respect to the debt maturing in the remainder of 2026, we are actively pursuing refinancing the remaining obligations, though there can be no assurance that we can refinance such obligations on favorable terms or at all. For the remaining indebtedness, we may not have sufficient cash on hand to repay such obligations, and, therefore, we expect to refinance at least a portion of this indebtedness or select other alternatives based on market conditions as these loans mature; however, there can be no assurance that we will be able to obtain financing on acceptable terms or at all.
Our ability to obtain financing could be affected by various risks and uncertainties, including, but not limited to, the current inflationary environment, elevated interest rates, tariff policies, and other risks, including, but not limited to those detailed in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025.
Share Repurchase Program
We maintain a share repurchase program under which $122.5 million remains available to repurchase as of June 30, 2026 (Note 10). We did not repurchase any Common Shares under this program during the six months ended June 30, 2026.
Sources of Liquidity
Our primary sources of capital for funding our short-term (less than 12 months) and long-term (12 months and longer) liquidity needs include (i) the issuance of both public equity and OP Units, (ii) the issuance of both secured and unsecured debt, (iii) unfunded capital commitments from noncontrolling interests within Investment Management, (iv) future sales of existing properties, (v) repayments of Structured Financing investments, and (vi) cash on hand and future cash flow from operating activities.
Our cash on hand in our consolidated subsidiaries as of June 30, 2026 totaled $33.0 million. Our remaining sources of liquidity are described further below. Depending upon the availability and cost of external capital, we believe our sources of capital are sufficient to meet our liquidity needs. Our historical cash flow uses are reflected in our Condensed Consolidated Statements of Cash Flows and are discussed in further detail below.
47
Issuances of Common Shares
Our ATM Program (Note 10) provides us with an efficient and low-cost vehicle for raising capital through public equity issuances on an “as-we-go” basis to fund our capital needs.
During the six months ended June 30, 2026, we physically settled 6,209,562 forward shares under the ATM Program in exchange for aggregate net proceeds of $128.0 million, which were used to reduce outstanding borrowings and fund investment activity. As of June 30, 2026, we had unsettled forward equity contracts to sell 17,771,271 shares (including 9,242,996 Common Shares sold in an underwritten public offering in June 2026 and related underwriters’ option exercise) for estimated aggregate net cash proceeds of $368.8 million. We also had $199.1 million of remaining availability for future share issuance under the ATM Program (Note 10).
Investment Management Capital
As of June 30, 2026, unfunded capital commitments from noncontrolling interests within Funds III, IV and V were $0.6 million, $16.7 million and $22.9 million, respectively. We have no remaining commitments from Fund II (Note 1).
Financing and Debt
As of June 30, 2026, we had $490.7 million of capacity under existing REIT Portfolio debt facilities. In addition, our REIT Portfolio and Investment Management platform included 146 unleveraged consolidated properties with an aggregate carrying value of approximately $2.5 billion; however, there can be no assurance that financing would be available for these properties at favorable terms, if at all (Note 7). See also “—Financing and Capital Activity” for details on our Fourth Amended and Restated Credit Facility entered into in April 2026.
HISTORICAL CASH FLOW
The following table compares the historical cash flow for the six months ended June 30, 2026 with the cash flow for the six months ended June 30, 2025 (in millions, totals may not add due to rounding):
|
|
Six Months Ended June 30, |
|
|||||||||
|
|
2026 |
|
|
2025 |
|
|
Variance |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Net cash provided by operating activities |
|
$ |
89.6 |
|
|
$ |
90.7 |
|
|
$ |
(1.1 |
) |
Net cash provided by (used in) investing activities |
|
|
268.2 |
|
|
|
(394.7 |
) |
|
|
662.9 |
|
Net cash (used in) provided by financing activities |
|
|
(365.4 |
) |
|
|
332.1 |
|
|
|
(697.5 |
) |
(Decrease) increase in cash and cash equivalents and restricted cash |
|
$ |
(7.7 |
) |
|
$ |
28.1 |
|
|
$ |
(35.8 |
) |
Operating Activities
Net cash provided by operating activities primarily reflects the Company’s operating results, adjusted for non-cash items and changes in working capital.
Net cash provided by operating activities was relatively flat, decreasing by $1.1 million for the six months ended June 30, 2026 compared to the prior year period, despite a $194.5 million increase in net income. The increase in net income was largely driven by non-cash and non-operating items, primarily a $146.1 million gain on property dispositions, that do not impact operating cash flow.
Investing Activities
Net cash used in investing activities is impacted by our investments in and advances to unconsolidated affiliates, the timing and extent of our real estate development, capital improvements, and acquisition and disposition activities during the period.
Net cash provided by investing activities increased by $662.9 million for the six months ended June 30, 2026 compared to the prior year period, primarily due to (i) $572.0 million of higher cash inflows from real estate dispositions, (ii) $148.3 million of lower cash outflows for acquisitions, (iii) $20.0 million less cash used for the issuance of a note receivable, and (iv) $15.1 million of higher return of capital from unconsolidated affiliates. These increases were partially offset by (i) $63.1 million of higher cash used for investments in unconsolidated affiliates, (ii) $9.8 million of increased spending on development, construction, and property improvements, (iii) $7.1 million of lower refunds of deposits for properties under contract, (iv) $6.8 million of cash received in the prior year upon the consolidation of a previously unconsolidated investment that did not recur, and (v) $5.4 million of proceeds from the sale of marketable securities in the prior year that did not recur.
48
Financing Activities
Net cash provided by financing activities is impacted by the timing and extent of issuances of debt and equity securities, distributions paid to common shareholders and unitholders of the Operating Partnership as well as principal and other payments associated with our outstanding indebtedness.
Net cash used in financing activities increased by $697.5 million for the six months ended June 30, 2026 compared to the prior year period, primarily due to (i) $150.2 million of lower proceeds from the issuance of Common Shares, (ii) $331.5 million of increased net repayments of debt, (iii) $187.0 million of higher capital distributions to noncontrolling interests, (iv) $8.6 million more cash used to acquire noncontrolling interests, (v) $2.5 million of lower contributions from noncontrolling interests, and (vi) $4.0 million of higher dividend payments.
Unconsolidated Indebtedness
We have the following investments made through joint ventures (that may include, among others, tenancy-in common and other similar investments) for the purpose of investing in operating properties. We account for these investments using the equity method of accounting. As such, our financial statements reflect our investment and our share of income and loss from, but not the individual assets and liabilities, of these joint ventures.
See Note 4 for a discussion of our unconsolidated investments. The Operating Partnership’s pro-rata share of unconsolidated non-recourse debt related to those investments is as follows (dollars in millions):
|
|
Operating Partnership |
|
|
June 30, 2026 |
|||||||||
Investment |
|
Ownership |
|
|
Pro-rata Share of |
|
|
Effective Interest Rate (a) |
|
|
Maturity Date |
|||
840 N. Michigan |
|
|
94.4 |
% |
|
$ |
31.3 |
|
|
|
6.50 |
% |
|
Dec 2026 |
Wood Ridge Plaza |
|
|
18.1 |
% |
|
|
6.5 |
|
|
|
7.14 |
% |
|
Mar 2027 |
La Frontera |
|
|
18.1 |
% |
|
|
10.0 |
|
|
|
6.14 |
% |
|
Jun 2027 |
Riverdale FC |
|
|
18.0 |
% |
|
|
6.7 |
|
|
|
6.60 |
% |
|
Nov 2027 |
Frederick County Square |
|
|
18.1 |
% |
|
|
4.4 |
|
|
|
5.52 |
% |
|
Nov 2027 |
Georgetown Portfolio |
|
|
50.0 |
% |
|
|
6.6 |
|
|
|
4.72 |
% |
|
Dec 2027 |
LINQ Promenade(d) |
|
|
15.0 |
% |
|
|
26.3 |
|
|
|
5.40 |
% |
|
Dec 2027 |
Shoppes at South Hills(b) |
|
|
18.1 |
% |
|
|
5.9 |
|
|
|
5.95 |
% |
|
Mar 2028 |
Mohawk Commons |
|
|
18.1 |
% |
|
|
7.0 |
|
|
|
5.80 |
% |
|
Mar 2028 |
The Walk at Highwoods Preserve(b) |
|
|
20.0 |
% |
|
|
4.1 |
|
|
|
6.25 |
% |
|
Oct 2028 |
Shops at Skyview(c) |
|
|
20.0 |
% |
|
|
55.3 |
|
|
|
5.13 |
% |
|
Jan 2029 |
Atlantic Portfolio(c) |
|
|
20.0 |
% |
|
|
51.1 |
|
|
|
4.98 |
% |
|
Feb 2029 |
Avenue at West Cobb(c) |
|
|
20.0 |
% |
|
|
8.5 |
|
|
|
4.98 |
% |
|
Feb 2029 |
Crossroads Shopping Center(c) |
|
|
49.0 |
% |
|
|
36.8 |
|
|
|
5.78 |
% |
|
Nov 2029 |
Pinewood Square(b) |
|
|
20.0 |
% |
|
|
9.0 |
|
|
|
5.51 |
% |
|
Mar 2030 |
Gotham Plaza |
|
|
49.0 |
% |
|
|
13.7 |
|
|
|
5.90 |
% |
|
Oct 2034 |
Total |
|
|
|
|
$ |
283.2 |
|
|
|
|
|
|
||
CRITICAL ACCOUNTING ESTIMATES
Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Report is based upon the Condensed Consolidated Financial Statements, which have been prepared in accordance with GAAP. The preparation of the Condensed Consolidated Financial Statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. We base our estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We believe there have been no material changes to the items that we disclosed as our critical accounting policies under Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the year ended December 31, 2025.
49
Recently Issued and Adopted Accounting Pronouncements
Reference is made to Note 1 in the Notes to Condensed Consolidated Financial Statements for information about recently issued accounting pronouncements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Information as of June 30, 2026
Our primary market risk exposure is to changes in interest rates related to our property mortgage loans and other debt. See Note 7 in the Notes to the Condensed Consolidated Financial Statements for certain quantitative details related to our property mortgage loans and other debt.
Currently, we manage our exposure to fluctuations in interest rates primarily through the use of fixed-rate debt and interest rate swap and cap agreements. As of June 30, 2026, total property mortgage loans and other notes payable aggregated $1,652.3 million, excluding $0.5 million of unamortized premium and $15.8 million of net unamortized debt issuance costs. Of this amount, $1,284.6 million, or 77.7%, was fixed-rate, including debt with rates effectively fixed through the use of derivative financial instruments, and $367.7 million, or 22.3%, was variable-rate based upon the Secured Overnight Financing Rate (“SOFR”) or Prime rates plus applicable spreads.
As of June 30, 2026, we were party to 28 interest rate swap agreements and one interest rate cap agreement, which together hedged interest rate exposure on $1,034.2 million and $32.2 million of variable-rate debt, respectively.
If the Company decided to employ higher leverage levels, it would be subject to higher debt service requirements and an increased risk of default, which could adversely affect financial condition, cash flows and ability to make distributions to shareholders. In addition, increases or changes in interest rates could increase borrowing costs and may limit the Company’s ability to refinance its indebtedness.
The following table sets forth information as of June 30, 2026 concerning our long-term debt obligations, including principal cash flows by scheduled maturity (without regard to available extension options) and weighted average effective interest rates of maturing amounts (dollars in millions):
REIT Portfolio Consolidated Mortgage and Other Debt
Year |
|
Scheduled |
|
|
Maturities |
|
|
Total |
|
|
Weighted Average |
|
||||
2026 (Remainder) |
|
$ |
1.2 |
|
|
$ |
102.0 |
|
|
$ |
103.2 |
|
|
|
6.1 |
% |
2027 |
|
|
4.8 |
|
|
|
45.1 |
|
|
|
49.9 |
|
|
|
4.8 |
% |
2028 |
|
|
1.8 |
|
|
|
70.4 |
|
|
|
72.2 |
|
|
|
4.1 |
% |
2029 |
|
|
1.2 |
|
|
|
97.1 |
|
|
|
98.3 |
|
|
|
5.5 |
% |
2030 |
|
|
0.3 |
|
|
|
369.9 |
|
|
|
370.2 |
|
|
|
4.4 |
% |
Thereafter |
|
|
1.0 |
|
|
|
512.5 |
|
|
|
513.5 |
|
|
|
4.0 |
% |
|
|
$ |
10.3 |
|
|
$ |
1,197.0 |
|
|
$ |
1,207.3 |
|
|
|
|
|
Investment Management Consolidated Mortgage and Other Debt
Year |
|
Scheduled |
|
|
Maturities |
|
|
Total |
|
|
Weighted Average |
|
||||
2026 (Remainder) |
|
$ |
0.7 |
|
|
$ |
57.9 |
|
|
$ |
58.6 |
|
|
|
5.6 |
% |
2027 |
|
|
0.5 |
|
|
|
55.6 |
|
|
|
56.1 |
|
|
|
6.2 |
% |
2028 |
|
|
— |
|
|
|
78.2 |
|
|
|
78.2 |
|
|
|
5.1 |
% |
2029 |
|
|
— |
|
|
|
84.6 |
|
|
|
84.6 |
|
|
|
5.7 |
% |
2030 |
|
|
— |
|
|
|
30.0 |
|
|
|
30.0 |
|
|
|
5.2 |
% |
Thereafter |
|
|
— |
|
|
|
137.5 |
|
|
|
137.5 |
|
|
|
4.6 |
% |
|
|
$ |
1.2 |
|
|
$ |
443.8 |
|
|
$ |
445.0 |
|
|
|
|
|
50
Mortgage Debt in Unconsolidated Partnerships (at our Pro-Rata Share)
Year |
|
Scheduled |
|
|
Maturities |
|
|
Total |
|
|
Weighted Average |
|
||||
2026 (Remainder) |
|
$ |
3.2 |
|
|
$ |
28.3 |
|
|
$ |
31.5 |
|
|
|
6.5 |
% |
2027 |
|
|
1.2 |
|
|
|
59.3 |
|
|
|
60.5 |
|
|
|
5.8 |
% |
2028 |
|
|
0.1 |
|
|
|
16.6 |
|
|
|
16.7 |
|
|
|
6.0 |
% |
2029 |
|
|
0.3 |
|
|
|
151.5 |
|
|
|
151.8 |
|
|
|
5.2 |
% |
2030 |
|
|
— |
|
|
|
9.0 |
|
|
|
9.0 |
|
|
|
5.5 |
% |
Thereafter |
|
|
— |
|
|
|
13.7 |
|
|
|
13.7 |
|
|
|
5.9 |
% |
|
|
$ |
4.8 |
|
|
$ |
278.4 |
|
|
$ |
283.2 |
|
|
|
|
|
Without regard to available extension options, during the remainder of 2026, $161.8 million of our total consolidated debt and $31.5 million representing our pro-rata share of unconsolidated debt will mature. In addition, $106 million of consolidated debt and $60.5 million representing our pro-rata share of unconsolidated debt will mature in 2027. With respect to this maturing debt, we have extension options on consolidated debt aggregating $160.3 million maturing in 2026 and $48.5 million maturing in 2027 as of June 30, 2026; however, there can be no assurance that the Company will be able to successfully execute any or all of its available extension options.
The Company expects to refinance some or all of such debt at the then-prevailing market interest rates, which may be greater than the current interest rates. Based on outstanding balances, a 100 basis point increase in interest rates on refinanced debt would increase annual interest expense by approximately $3.6 million, of which the Company’s pro-rata share would be $2.3 million.
As of June 30, 2026, the Company had variable-rate debt of $367.7 million, net of variable-to-fixed interest rate swap agreements currently in effect. A 100 basis point increase in applicable interest rate indices would increase annual interest expense on such debt by approximately $3.7 million, of which the Company’s pro-rata share would be $2.1 million. We may seek additional variable-rate financing if pricing and other commercial and financial terms are favorable and would consider hedging associated interest rate risk through interest rate swaps and protection agreements, or other means.
Based on our outstanding debt balances as of June 30, 2026, the estimated fair value of our total consolidated outstanding debt would decrease by approximately $7.0 million assuming a 100 basis point increase in interest rates. Conversely, a 100 basis point decrease in interest rates would increase the estimated fair value of our total outstanding debt by approximately $4.8 million.
As of June 30, 2026, and December 31, 2025, we had consolidated notes receivable of $154.5 million and $154.9 million, respectively. The estimated fair value of our notes receivable was determined by discounting future cash receipts utilizing a discount rate equivalent to the rate at which similar notes receivable would be originated under conditions then existing. Based on our outstanding notes receivable balances as of June 30, 2026, a 100 basis point increase in interest rates would decrease the estimated fair value of our total outstanding notes receivable by approximately $0.8 million, while a 100 basis point decrease would increase the estimated fair value by approximately $0.8 million.
Summarized Information as of December 31, 2025
As of December 31, 2025, we had total property mortgage loans and other notes payable of $1.9 billion, excluding the unamortized premium of $0.9 million and unamortized debt issuance costs of $11.4 million, of which $1.5 billion, or 80.2%, was fixed-rate, inclusive of debt with rates fixed through the use of derivative financial instruments, and $370.6 million, or 19.8%, was variable-rate based upon SOFR rates plus applicable spreads. As of December 31, 2025, we were party to 35 interest rate swap and one interest rate cap agreement to hedge our exposure to changes in interest rates with respect to $1.2 billion and $32.2 million of SOFR-based variable-rate debt, respectively.
Interest expense on our variable-rate debt of $370.6 million, net of variable to fixed-rate swap agreements currently in effect, as of December 31, 2025, would have increased $3.7 million if corresponding rate indices increased by 100 basis points. Based on our outstanding debt balances as of December 31, 2025, the fair value of our total outstanding debt would have decreased by approximately $9.4 million if interest rates increased by 1%. Conversely, if interest rates decreased by 1%, the fair value of our total outstanding debt would have increased by approximately $6.1 million.
Changes in Market Risk Exposures from December 31, 2025 to June 30, 2026
Our interest rate risk exposure from December 31, 2025, to June 30, 2026 has decreased on an absolute basis, as the $370.6 million of variable-rate debt as of December 31, 2025 has decreased to $367.7 million as of June 30, 2026. Our interest rate exposure as a percentage of total debt has increased, as our variable-rate debt accounted for 19.8% of our consolidated debt as of December 31, 2025 compared to 22.3% as of June 30, 2026.
51
ITEM 4. CONTROLS AND PROCEDURES.
Disclosure Controls and Procedures
Our disclosure controls and procedures include internal controls and other procedures designed to provide reasonable assurance that information required to be disclosed in this and other reports filed under the Exchange Act, is recorded, processed, summarized, and reported within the required time periods specified in the SEC’s rules and forms; and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures. It should be noted that no system of controls can provide complete assurance of achieving a company’s objectives and that future events may impact the effectiveness of a system of controls. Our Chief Executive Officer and Chief Financial Officer, after conducting an evaluation, together with members of our management, of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2026, have concluded that our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) were effective as of June 30, 2026, at a reasonable level of assurance.
Changes in Internal Control Over Financial Reporting
There have been no changes in our internal control over financial reporting during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.
52
PART II – OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
From time to time, we are a party to various legal proceedings, claims or regulatory inquiries and investigations arising out of, or incident to, our ordinary course of business. While we are unable to predict with certainty the outcome of any particular matter, management does not expect, when such matters are resolved, that our resulting exposure to loss contingencies, if any, will have a material adverse effect on our consolidated financial position.
ITEM 1A. RISK FACTORS.
Except to the extent additional factual information disclosed elsewhere in this Report relates to such risk factors (including, without limitation, the matters discussed in Part I, “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations”), there were no material changes to the risk factors disclosed in Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2025.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. MINE SAFETY DISCLOSURES.
Not applicable.
ITEM 5. OTHER INFORMATION.
Trading Arrangements
During the three months ended June 30, 2026, none of our officers or trustees (as defined in Rule 16a-1(f) of the Exchange Act)
53
ITEM 6. EXHIBITS.
The following is an index to all exhibits including (i) those filed with this Quarterly Report on Form 10-Q and (ii) those incorporated by reference herein:
Exhibit No. |
|
Description |
|
Method of Filing |
||
|
|
|
|
|
||
10.1 |
|
Fourth Amended and Restated Credit Agreement, dated as of April 17, 2026, by and among Acadia Realty Limited Partnership, certain subsidiaries of Acadia Realty Limited Partnership, Acadia Realty Trust, and Bank of America, N.A., as administrative agent, Wells Fargo Bank, National Association, M&T Bank, Truist Bank, and PNC Bank, National Association, as syndication agents, BofA Securities, Inc. and Wells Fargo Securities, LLC, as joint bookrunners, BofA Securities, Inc., Wells Fargo Securities, LLC, M&T Bank, Truist Securities, Inc. and PNC Capital Markets LLC, as joint lead arrangers, Citizens Bank, N.A, JPMorgan Chase Bank, N.A. and TD Bank, as documentation agents, and the lenders and letter of credit issuers party thereto |
|
Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on April 20, 2026 |
||
|
|
|
|
|
||
31.1 |
|
Certification of Chief Executive Officer pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|
Filed herewith
|
||
|
|
|
|
|
||
31.2 |
|
Certification of Chief Financial Officer pursuant to rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|
Filed herewith |
||
|
|
|
|
|
||
32.1 |
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|
Furnished herewith |
||
|
|
|
|
|
||
32.2 |
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|
Furnished herewith |
||
|
|
|
|
|
||
101.INS |
|
Inline XBRL Instance Document–the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document |
|
Filed herewith |
||
|
|
|
|
|
||
101.SCH |
|
Inline XBRL Taxonomy Extension Schema with Embedded Linkbase Documents |
|
Filed herewith |
||
|
|
|
|
|
||
104 |
|
Cover page formatted as Inline XBRL and contained in Exhibit 101 |
|
Filed herewith |
||
54
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
ACADIA REALTY TRUST |
|
|
(Registrant) |
|
|
|
By: |
|
/s/ Kenneth F. Bernstein |
|
|
Kenneth F. Bernstein |
|
|
Chief Executive Officer, |
|
|
President and Trustee |
|
|
|
By: |
|
/s/ John Gottfried |
|
|
John Gottfried |
|
|
Executive Vice President and |
|
|
Chief Financial Officer |
|
|
(Principal Financial Officer) |
|
|
|
By: |
|
/s/ David Buell |
|
|
David Buell |
|
|
Senior Vice President and |
|
|
Chief Accounting Officer |
|
|
(Principal Accounting Officer) |
Dated: July 29, 2026
55