Acadia Realty Trust(AKR)2024-10-28 20:33Financial Data and Key Metrics Changes - The company reported FFO of 0.01 and a year-over-year increase of 0.32 to 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 1.6 million upon commencement of new leases, contributing to a total of approximately 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 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]