Group 1: Company Performance - Acadia Realty Trust (AKR) has gained approximately 44.8% year-to-date, outperforming the average gain of 20.6% in the Finance group [4] - The Zacks Consensus Estimate for AKR's full-year earnings has increased by 0.6% over the past three months, indicating improved analyst sentiment and a stronger earnings outlook [3] - Acadia Realty Trust is ranked 1 in the Zacks Sector Rank among 871 companies in the Finance group [2] Group 2: Industry Comparison - Acadia Realty Trust belongs to the REIT and Equity Trust - Retail industry, which has an average gain of 8.5% year-to-date, further highlighting AKR's superior performance [5] - Another notable performer in the Finance sector is Amalgamated Financial (AMAL), which has increased by 28.3% year-to-date, but still lags behind AKR [4] - The Financial - SBIC & Commercial Industry, to which Amalgamated Financial belongs, has only gained 6.4% year-to-date, ranking 205 among 36 industries [6]

Financial Data and Key Metrics Changes - The company reported FFO of $0.32 per share, reflecting a sequential growth of $0.01 and a year-over-year increase of $0.05 or 20% when excluding realized gains on Albertson shares [64] - Same-store NOI growth was reported at 5.9% for the quarter and 5.7% for the year, trending towards the upper end of the 5% to 6% annual guidance [66] - The company maintained its full-year guidance, projecting a range of $0.32 to $0.34 for the fourth quarter [65] Business Line Data and Key Metrics Changes - The company signed a record $7 million in core leases during the third quarter, exceeding the total volume of leases signed in 2023 [31] - The signed not yet opened pipeline increased by over 20%, reaching approximately $10 million as of September 30 [67] - The capture of below-market spaces resulted in an incremental ABR of $1.6 million upon commencement of new leases, contributing to a total of approximately $11.6 million of incremental core ABR [68][71] Market Data and Key Metrics Changes - The company noted that rents in SoHo are up double digits year-over-year and 30% to 40% since 2019 [42] - In Williamsburg, rents have grown 40% to 50% since 2019 and 10% to 15% over the last year [45] - The demand on M Street in Georgetown has never been stronger, with year-over-year sales growth exceeding 10% [49] Company Strategy and Development Direction - The company aims to deliver strong internal growth primarily from its street retail portfolio, maintaining a strong balance sheet for liquidity and capacity to grow [8][9] - The focus is on accretive acquisitions that enhance earnings and net asset value, with $270 million of acquisitions closed or under contract [13][20] - Expansion plans include the Henderson Avenue project in Dallas, which is expected to stabilize at an 8% yield on cost [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue adding value through internal growth, a strong balance sheet, and strategic investments [27] - The company remains bullish on the retail environment, noting that retailers recognize the critical nature of physical stores and the benefits of omnichannel sales [100][101] - Management highlighted the importance of geographic diversification to capture growth opportunities across various markets [79] Other Important Information - The company has secured over $1 billion of debt and equity capital, reducing its debt to GAV to about 30% and debt-to-EBITDA ratio to 5.6 times [60][62] - The company is focused on maintaining a stable and profitable revenue stream from its investment management platform, with a goal of approximately $2 billion in AUM [26] Q&A Session Summary Question: Is the pace and level of opportunities indicative of future growth? - Management confirmed that the current pace reflects the hard work of the team and the alignment of market conditions, allowing for continued growth in accretive acquisitions [74] Question: How does the company deal with competition in street retail? - Management noted that competition is professional and manageable, allowing the company to leverage its expertise and cost of capital to secure favorable deals [75][76] Question: What percentage of NOI comes from NYC and future growth expectations? - Approximately one-third of core NOI comes from New York, with expectations for growth based on market opportunities [77][78] Question: Is the pipeline of deals more domestic or international? - Management indicated a healthy mix of both, with international brands increasingly entering markets like M Street [80] Question: How does occupancy cost compare across various markets? - Occupancy costs in established markets like SoHo are in the mid-teens, while newer markets like Bleecker are closer to 10%, indicating room for growth [89][90] Question: What is the potential size of the acquisition pipeline? - Management expressed confidence in the availability of several billion dollars in scalable assets, with a focus on accretive deals [92][96] Question: Will fund dispositions accelerate as off-balance sheet acquisition activity picks up? - Management suggested that while stability is assumed for now, there is potential for growth in the investment management platform [115][116]

Financial Performance - Total revenues for the three months ended September 30, 2024, were $87,745,000, an increase of 7.4% compared to $81,392,000 for the same period in 2023[12] - Net income for the three months ended September 30, 2024, was $12,254,000, compared to a net loss of $16,268,000 for the same period in 2023[13] - Operating income increased significantly to $17,492,000 for the three months ended September 30, 2024, from $6,691,000 in the same period of 2023, representing a 161.5% increase[12] - Basic income per share for the three months ended September 30, 2024, was $0.07, compared to a loss of $0.02 per share for the same period in 2023[12] - Total expenses decreased to $70,253,000 for the three months ended September 30, 2024, from $74,701,000 in the same period of 2023, a reduction of 5.9%[12] - Comprehensive loss attributable to Acadia shareholders for the three months ended September 30, 2024, was $(21,956,000), compared to $14,279,000 for the same period in 2023[13] - Net income for the nine months ended September 30, 2024, was $6,979,000, a decrease from $8,486,000 in the same period of 2023, representing a decline of approximately 17.7%[17] - Total revenues for the nine months ended September 30, 2024, were $266,355 million, with investment management contributing $118,347 million[121] - Operating income for the same period was $49,289 million, reflecting a significant increase compared to previous periods[121] - Net income attributable to Acadia shareholders for the nine months ended September 30, 2024, was $13,126 million, showing resilience despite market challenges[121] Assets and Liabilities - Total assets as of September 30, 2024, were $4,276,323, a slight decrease from $4,291,154 as of December 31, 2023[9] - Total liabilities decreased to $1,866,359 from $2,157,598, a reduction of about 13.5%[10] - Acadia shareholders' equity rose to $1,926,727 from $1,636,917, indicating an increase of approximately 17.7%[10] - The total net investments in real estate as of September 30, 2024, were $3,560,353,000, slightly down from $3,612,080,000 at the end of 2023[33] - Total equity at September 30, 2024, was $2,374,927,000, an increase from $2,181,196,000 at the beginning of the year, reflecting a growth of approximately 8.9%[16] - Total debt as of September 30, 2024, was $1.59 billion, a decrease of 15.5% from $1.88 billion as of December 31, 2023[62] Cash Flow and Investments - Cash and cash equivalents increased significantly to $46,207 from $17,481, representing a growth of 163.5%[9] - Total cash provided by operating activities decreased to $102,576,000 in 2024 from $115,167,000 in 2023, reflecting a decline of about 10.9%[17] - Cash used in investing activities was $50,133,000 in 2024, a decrease from $90,071,000 in 2023, indicating a reduction of about 44.4%[17] - Proceeds from the disposition of properties amounted to $58,670,000 in 2024, with no proceeds reported in the same period of 2023[17] - The company raised $328,842,000 from the sale of common shares in 2024, with no similar transactions reported in 2023[17] Real Estate and Development - Real estate under development increased to $109,778 from $94,799, reflecting a growth of approximately 15.7%[9] - The company reported a total of $94.8 million in carrying value for properties under development as of September 30, 2024, with three properties in total[42] - The company disposed of properties totaling $64.51 million during the nine months ended September 30, 2024, resulting in a net gain of $757,000[38] - During the nine months ended September 30, 2024, the Company acquired retail properties totaling $52,203,000, including the Bleecker Street Portfolio for $20,347,000[34] Shareholder Information - The company reported a total of 113,902,348 common shares issued and outstanding as of September 30, 2024, compared to 95,361,676 shares previously[10] - The company declared dividends/distributions of $0.19 per Common Share/OP Unit, compared to $0.18 in the previous period, indicating a 5.6% increase[15] - The company declared distributions of $0.55 per Common Share/OP Unit for the nine months ended September 30, 2024, compared to $0.54 for the same period in 2023[16] Risks and Challenges - The company continues to face risks related to macroeconomic conditions, including inflation and geopolitical instability, which may impact future performance[6] - The company reported a loss of $15,952,000 from equity in earnings of unconsolidated affiliates in 2024, contrasting with earnings of $6,273,000 in 2023[17] - The company experienced realized and unrealized holding losses on investments for the nine months ended September 30, 2024, totaling $(5,918,000), compared to gains of $30,236,000 for the same period in 2023[12] Other Financial Metrics - Interest income from notes receivable for the three months ended September 30, 2024, was $4.8 million, up from $2.6 million in the same period of 2023, marking an increase of 84.6%[11] - Interest income rose to $7,859,000 for the three months ended September 30, 2024, compared to $5,087,000 for the same period in 2023, an increase of 54.7%[12] - Cash paid for interest during the nine months ended September 30, 2024, was $93,720,000, compared to $86,775,000 in 2023, representing an increase of 8.8%[19] - The company recognized total long-term incentive compensation expense of $2.4 million for the three months ended September 30, 2024, compared to $2.3 million for the same period in 2023[131]

Group 1 - Acadia Realty Trust reported quarterly funds from operations (FFO) of $0.32 per share, matching the Zacks Consensus Estimate and showing an increase from $0.27 per share a year ago [1] - The company posted revenues of $87.75 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 0.51% and up from $81.39 million year-over-year [2] - Acadia Realty Trust shares have increased approximately 41.3% since the beginning of the year, outperforming the S&P 500's gain of 21.8% [3] Group 2 - The future performance of Acadia Realty Trust's stock will largely depend on management's commentary during the earnings call and the company's FFO outlook [4][6] - The current consensus FFO estimate for the upcoming quarter is $0.33 on revenues of $91 million, and for the current fiscal year, it is $1.29 on revenues of $352.1 million [7] - The REIT and Equity Trust - Retail industry is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Financial Performance - Total revenues for Q3 2024 were $87.745 million, a year-to-date total of $266.355 million[10] - Rental income for Q3 2024 was $86.288 million, contributing to a year-to-date total of $257.951 million[10] - Total revenues for the quarter reached $83,068,000, with year-to-date revenues of $253,250,000[12] - Net operating income from properties was $56,709,000 for the quarter, totaling $170,638,000 year-to-date[12] - The company reported a net income attributable to Acadia shareholders of $8,414,000 for the quarter, with a year-to-date net income of $13,126,000[12] - Funds from Operations (FFO) for the quarter ended September 30, 2024, was $32,962, an increase of 22.5% compared to $26,845 for the same quarter in 2023[18] - Adjusted Funds from Operations (AFFO) for the quarter ended September 30, 2024, was $33,130, up 60.1% from $20,632 in the same quarter last year[18] - EBITDA for the quarter ended September 30, 2024, was $51,709, representing a 13.8% increase from $45,710 in the same quarter of 2023[19] - The company reported a net income attributable to Acadia of $8,414 for the quarter ended September 30, 2024, compared to a loss of $1,426 in the same quarter of 2023[19] Expenses and Liabilities - Total expenses for Q3 2024 amounted to $70.253 million, with year-to-date expenses at $216.625 million[10] - Total expenses for the quarter amounted to $26,359,000, with year-to-date expenses of $82,612,000[12] - The company experienced a loss on disposition of properties amounting to $441,000 year-to-date[12] - General and administrative expenses for the quarter were $10,215,000, totaling $30,162,000 year-to-date[12] - Total liabilities are reported at $1,866,359,000, including mortgage and other notes payable of $954,371,000[14] Capitalization and Debt - Total market capitalization as of September 30, 2024, was $3.975 billion[8] - The company’s total equity capitalization was $2.791 billion, representing 70% of the total capitalization[8] - Consolidated debt stood at $1.590 billion, with total debt capitalization at $1.184 billion, accounting for 30% of total capitalization[8] - The total debt (pro-rata) stands at $914,961 thousand, with a total market capitalization of $3,975,475 thousand[31] - Total debt for the Core Portfolio as of September 30, 2024, is $1,099,966,000, with a principal balance of $914,961,000[38] - The weighted average years to maturity for the Core Portfolio debt is 3.7 years[37] - The company has a significant portion of its debt maturing in 2025, totaling $474,121,000[46] Real Estate Portfolio - The company has a strong core real estate portfolio focused on high-quality retail properties in dynamic corridors[3] - The company has cash and cash equivalents of $46,207,000 and restricted cash of $23,088,000[14] - The company has a total of $109,778,000 in real estate under development[14] - The company’s core portfolio has a total of 305,275 retail properties, contributing to a significant revenue stream[50] - The total gross leasable area (GLA) across properties is 1,090,688 square feet with an overall occupancy rate of 84.2%[53] Occupancy and Leasing - The physical occupancy rate at the end of the period was 91.7%, down from 92.4% in the previous year[20] - Leased occupancy at the end of the period was 94.6%, a decrease from 95.3% in the same period last year[20] - The total leased occupancy for core properties is 91.4%, indicating strong demand for retail spaces[55] - The average ABR per square foot for suburban properties is $19.16, reflecting competitive rental pricing[55] - The number of new leases executed in Q3 2024 was 5, with a total GLA of 12,542 square feet and a new base rent of $80.82 per square foot, reflecting a 72.6% growth in base rent compared to the previous year[60] Investment Management - Future guidance indicates continued focus on opportunistic and value-add investments through its investment management platform[3] - Acadia's total fund size reached $2,125.1 million as of September 2024[63] - Cumulative contributions amounted to $2,062.7 million, with a current quarter contribution of $86.6 million[63] - The company is currently not in a promote position for any funds[63] - Fund II portfolio occupancy rate stands at 85.9% with an annualized base rent (ABR) of $19,635,801[67] Redevelopment and Future Projects - The company has a total of 4 major redevelopment projects with an estimated future range of costs between $23.1 million and $58 million[75] - The estimated stabilization for the Henderson Avenue project in Dallas, TX is projected for 2027/2028, with a total cost incurred to date of $24.1 million[75] - The City Center redevelopment in San Francisco is expected to stabilize in 2026, with total costs incurred to date of $211.2 million[75] - The company plans to expand its market presence with new strategies and product developments[72] Guidance and Projections - The company's 2024 guidance for net earnings per share has been revised to $0.09-$0.13 from the previous range of $0.07-$0.11[29] - NAREIT FFO per share guidance is now $1.09-$1.13, unchanged from the prior guidance of $1.09-$1.15[29] - Funds from operations before special items per share guidance remains at $1.26-$1.32, consistent with the previous guidance[29]

Acadia Realty Trust (AKR) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The powe ...

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Acadia Realty Trust (AKR) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.Acadia Realty Trust is a member of our Finance group, which includes 871 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges th ...

buzbuzzer The current environment appears to be very favorable to real estate investment trusts, or REITs, and Shopping Center REITs in particular. REIT prices and yields have normalized, following the sell-off of 2022 and most of 2023, and the expected cuts in the prime rate, with the corresponding drop in treasury yields, will only help REITs further. The average REIT yield of 3.40% is nearly on par with the 10-year treasury yield of 3.85%, so REITs with higher-than-average yield or better-than-averag ...

ferrantraite/E+ via Getty ImagesIntroduction Acadia Realty Trust (NYSE:AKR) has significantly outperformed the Vanguard Real Estate Index Fund ETF (VNQ) so far in 2024, delivering a ~28.5% total return against the mid-single-digit gain for the benchmark ETF: AKR vs VNQ in 2024 (Seeking Alpha)This has resulted in net debt only accounting for 35% of the company's enterprise value. Coupled with a small proportion of floating-rate debt relative to peers, the company will see little tailwinds from Fed rate c ...

Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Acadia Realty Trust (AKR) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.Acadia Realty Trust is one of 860 companies in the Finance group. The Finance group currently sits ...