Acadia Realty Trust Reports Second Quarter 2026 Operating Results
RYE, N.Y.--( BUSINESS WIRE)--Acadia Realty Trust (NYSE: AKR) (“Acadia” or the “Company”) today reported operating results for the quarter ended June 30, 2026. All per share amounts are on a fully-diluted basis, where applicable. Acadia owns and operates a high-quality real estate portfolio of street and open-air retail properties in the nation's most dynamic retail corridors (“REIT Portfolio”), along with an investment management platform that targets opportunistic and value-add investments through its institutional co-investment vehicles (“Investment Management”).
Kenneth F. Bernstein, President and CEO of Acadia, commented:
“We delivered an exceptional second quarter that reaffirms the strength of our street retail thesis, with accelerating operating fundamentals and the proven benefits of scale converging across our must-have corridors. This operating momentum gives us the confidence to again raise our full-year guidance, reflecting 10% year-over-year growth at the midpoint. Our in-place REIT Portfolio generated same-property NOI growth of 8.7% for the quarter, while record leasing activity, in both volume and rental rate, produced high double-digit spreads on new leases. We complemented this internal growth with approximately $652 million of accretive REIT and Investment Management acquisitions year-to-date, further deepening our scale on the streets where we already operate. With strong in-place performance, a fully funded acquisition and development pipeline, and the outsized returns that scale creates on our irreplaceable street retail corridors, we are confident in our ability to drive meaningful earnings growth and long-term value for shareholders.”
Financial Results
A complete reconciliation, in dollars and per share amounts, of (i) net earnings attributable to Acadia to Funds From Operations (“FFO”) (as defined by the National Association of Real Estate Investment Trusts “NAREIT”) and FFO As Adjusted attributable to common shareholders and Common OP Unit holders and (ii) operating income to net operating income (“NOI”) and definitions of non-GAAP metrics are included in the financial tables of this release. The amounts discussed below are net of noncontrolling interests (except for the Common OP Unit holders) and all per share amounts are on a fully-diluted basis.
Net Income
NAREIT FFO
FFO As Adjusted
REIT Portfolio Same-Property NOI
REIT Portfolio Occupancy and Leasing Update
Signed Not Opened Update
The following summarizes the activity, at the Company’s pro-rata share, of ABR of its signed not opened pipeline during the second quarter (amounts in millions):
Balance at March 31, 2026
Commencing ABR
New Leases
Balance at June 30, 2026
REIT Portfolio (Same-property)
$
4.5
$
(2.2
)
$
4.1
$
6.4
REIT Portfolio (Development/Redevelopment/Prestabilized)
5.2
(0.2
)
2.8
7.8
Investment Management
0.8
(0.5
)
2.0
2.3
Total
$
10.5
$
(2.9
)
$
8.9
$
16.5
Transactional Activity
During the quarter ended June 30, 2026, the Company completed approximately $120 million of accretive street retail acquisitions within its REIT Portfolio, with an additional $29 million of street retail acquisitions completed subsequent to quarter end for an aggregate of $149 million.
These transactions bring year-to-date acquisition volume to $652 million, including $79 million and $424 million (approximately $85 million at the Company’s share) of REIT Portfolio and Investment Management acquisitions completed in the first quarter. All REIT Portfolio acquisitions are on streets where the Company is building or further expanding its existing scale, with a robust pipeline of potential acquisitions on those same streets.
REIT Portfolio Acquisitions
Investment Management Platform Dispositions
During the second quarter, the Company, through its Investment Management platform, completed the disposition of three properties for $107 million, of which the Company’s share was approximately $21 million. Details of the dispositions are discussed below. Year-to-date, the Company has disposed of a total of approximately $715 million, including recapitalizations of $504 million, of which the Company’s share was $142 million. These fund dispositions and the Fund V recapitalization (completed in the first quarter) generated a weighted average gross equity multiple of approximately 1.9x.
Balance Sheet
Equity Activity:
Extension and Expansion of $1.425 Billion Corporate Credit Facility
Pro-Rata REIT Portfolio and Investment Management Debt-to-EBITDA (as adjusted):
No Significant REIT Portfolio Debt Maturities until 2029:
Guidance
The Company increased its full year Net Earnings, NAREIT FFO and FFO As Adjusted guidance. The following updated guidance is based upon Acadia’s current view of market conditions and assumptions for the year ended December 31, 2026.
2026 Guidance 1
Revised
Prior
Net earnings per share attributable to Acadia
$0.40-$0.41
$0.37-$0.39
Depreciation of real estate and amortization of leasing costs (net of noncontrolling interest share other than Common OP Units)
0.96-0.97
0.95-0.97
Gain on disposition on real estate properties (net of noncontrolling interest share other than Common OP Units)
(0.24)
(0.22)
Adjustment of redeemable noncontrolling interest to estimated redemption value
0.04
0.04
Noncontrolling interest in Operating Partnership
0.03
0.03
NAREIT FFO per share attributable to Common Shareholders and Common OP Unit Holders
$1.19-$1.21
$1.17-$1.21
Adjustments to FFO:
Transaction and other expenses 2
0.05
0.05
FFO As Adjusted per share attributable to Common Shareholders and Common OP Unit Holders 3
$1.24-$1.26
$1.22-$1.26
Management will conduct a conference call on Wednesday, July 29, 2026 at 11:00 AM ET to review the Company’s earnings and operating results. Participant registration and webcast information is listed below.
Live Conference Call:
Date:
Wednesday, July 29, 2026
Time:
11:00 AM ET
Participant call:
Second Quarter 2026 Dial-In
Participant webcast:
Second Quarter 2026 Webcast
Webcast Listen-only and Replay:
www.acadiarealty.com/investors under Events, Presentations & Portfolio Updates
The Company uses, and intends to use, the Investors page of its website, which can be found at https://www.acadiarealty.com/investors, as a means of disclosing material nonpublic information and of complying with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations and certain portfolio updates. Additionally, the Company also uses its LinkedIn profile to communicate with its investors and the public. Accordingly, investors are encouraged to monitor the Investors page of the Company's website and its LinkedIn profile, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.
About Acadia Realty Trust
Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth. Acadia owns and operates a high-quality real estate portfolio of street and open-air retail properties in the nation's most dynamic retail corridors (“REIT Portfolio”), along with an investment management platform that targets opportunistic and value-add investments through its institutional co-investment vehicles (“Investment Management”). For further information, please visit www.acadiarealty.com.
Safe Harbor Statement
Certain statements in this press release 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 the Company's future plans, strategies and expectations (including with regards to its acquisition pipeline and development activities) 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 the Company's 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 (such as ongoing armed conflicts and heightened regional tensions in the Middle East), 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 rising inflation; (ii) the Company’s success in implementing its business strategy and its ability to identify, underwrite, finance, consummate and integrate diversifying acquisitions and investments; (including the potential acquisitions discussed in this press release); (iii) changes in general economic conditions or economic conditions in the markets in which the Company may, from time to time, compete, including the impact of recently announced tariffs on our tenants and their customers, and their effect on the Company’s and our tenants' revenues, earnings and funding sources and those of our tenants; (iv) increases in the Company’s borrowing costs as a result of rising inflation, changes in interest rates and other factors; (v) the Company’s ability to pay down, refinance, restructure or extend its indebtedness as it becomes due; (vi) the Company’s investments in joint ventures and unconsolidated entities, including its lack of sole decision-making authority and its reliance on its joint venture partners’ financial condition; (vii) the Company’s ability to obtain the financial results expected from its development and redevelopment projects; (viii) the ability and willingness of the Company's tenants to renew their leases with the Company upon expiration, the Company’s ability to re-lease its properties on the same or better terms in the event of nonrenewal or in the event the Company exercises its right to replace an existing tenant, and obligations the Company may incur in connection with the replacement of an existing tenant; (ix) the Company’s potential liability for environmental matters; (x) damage to the Company’s 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) the Company’s ability and willingness to maintain its qualification as a 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 the Company’s 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 most recent Annual Report on Form 10-K and other periodic or current reports the Company files with the SEC. Any forward-looking statements in this press release 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.
Acadia Realty Trust and Subsidiaries
Condensed Consolidated Statements of Operations (1)
(Unaudited, Dollars and Common Shares and Units in thousands, except per share amounts)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Revenues
Rental
$
91,188
$
98,297
$
189,756
$
200,937
Other
4,235
2,295
8,659
4,049
Total revenues
95,423
100,592
198,415
204,986
Expenses
Depreciation and amortization
35,162
39,269
75,317
78,709
General and administrative
11,782
11,532
27,085
23,129
Real estate taxes
12,735
13,317
25,657
26,620
Property operating
17,039
17,524
35,288
35,804
Impairment charges
—
18,190
—
24,640
Total expenses
76,718
99,832
163,347
188,902
Gain on disposition of properties
3,969
—
146,117
—
Operating income
22,674
760
181,185
16,084
Equity in earnings (losses) of unconsolidated affiliates
13,929
(4,191
)
12,421
(5,904
)
Interest income
6,557
6,358
11,345
12,454
Realized and unrealized holding (losses) gains on investments and other
(33
)
(54
)
(649
)
1,567
Interest expense
(20,143
)
(23,604
)
(42,195
)
(46,851
)
Loss on change in control
—
—
—
(9,622
)
Income (loss) from continuing operations before income taxes
22,984
(20,731
)
162,107
(32,272
)
Income tax provision
(154
)
(211
)
(166
)
(327
)
Net income (loss)
22,830
(20,942
)
161,941
(32,599
)
Net loss attributable to redeemable noncontrolling interests
981
1,724
1,679
3,393
Net (income) loss attributable to noncontrolling interests
(12,773
)
21,181
(122,105
)
32,777
Net income attributable to Acadia shareholders
$
11,038
$
1,963
$
41,515
$
3,571
Less: earnings attributable to unvested participating securities
(332
)
(338
)
(665
)
(677
)
Less: adjustment of redeemable noncontrolling interests to estimated redemption value
(3,868
)
—
(5,661
)
—
Income from continuing operations net of income attributable to participating securities for diluted earnings per share
$
6,838
$
1,625
$
35,189
$
2,894
Weighted average shares for basic earnings per share
133,627
130,981
132,444
126,182
Weighted average shares for diluted earnings per share
133,825
130,981
132,642
126,182
Net earnings per share - basic (2)
$
0.05
$
0.01
$
0.27
$
0.02
Net earnings per share - diluted (2)
$
0.05
$
0.01
$
0.27
$
0.02
Acadia Realty Trust and Subsidiaries
Reconciliation of Consolidated Net Income to Funds from Operations and Funds from Operations As Adjusted (1,3)
(Unaudited, Dollars and Common Shares and Units 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
$
11,038
$
1,963
$
41,515
$
3,571
Depreciation of real estate and amortization of leasing costs (net of noncontrolling interests' share other than Common OP Units)
35,113
31,665
70,964
63,272
Impairment charges (net of noncontrolling interests' share other than Common OP Units)
—
4,185
—
5,768
(Gain) loss on disposition of properties (net of noncontrolling interests' share other than Common OP Units)
(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 Common OP Unit holders - Diluted
$
43,135
$
38,074
$
80,010
$
82,657
Transaction and other expenses
1,523
152
5,881
678
Unrealized holding loss (gain) (net of noncontrolling interest share)
33
494
649
(1,178
)
Tenant lease settlement
—
—
—
(8,309
)
FFO As Adjusted attributable to Common Shareholder and Common OP Unit holders 1
$
44,691
$
38,720
$
86,540
$
73,848
Funds From Operations per Share - Diluted
Weighted-average shares outstanding
133,825
130,981
132,642
126,182
Weighted-average OP Units outstanding
8,543
7,672
8,424
7,828
Assumed conversion of Preferred OP Units to Common Shares
25
256
25
256
Weighted-average number of Common Shares and Common OP Units
142,393
138,909
141,091
134,266
Diluted Funds From Operations, per Common Share and Common OP Unit
$
0.30
$
0.27
$
0.57
$
0.62
Diluted Funds From Operations As Adjusted, per Common Share and Common OP Unit
$
0.31
$
0.28
$
0.61
$
0.55
Acadia Realty Trust and Subsidiaries
Reconciliation of Consolidated Operating Income to Net Property Operating Income (“NOI”) (1)
(Unaudited, Dollars 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 adjustments
(5,556
)
(3,194
)
(12,541
)
(5,906
)
Termination income
—
—
—
(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 back:
Operating Partnership's share of unconsolidated joint ventures NOI (4)
1,641
873
2,999
2,160
REIT Portfolio NOI
$
45,130
$
38,629
$
86,945
$
75,359
Reconciliation of Same-Property NOI
(Unaudited, 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
Acadia Realty Trust and Subsidiaries
Condensed Consolidated Balance Sheets (1)
(Unaudited, Dollars in thousands, except shares)
As of:
June 30, 2026
December 31, 2025
Assets
Investments in real estate, at cost
Buildings and improvements
$
3,089,483
$
3,421,366
Tenant improvements
324,002
339,414
Land
1,176,836
1,147,236
Construction in progress
30,564
32,969
Right-of-use assets - finance leases
61,366
61,366
Total
4,682,251
5,002,351
Less: Accumulated depreciation and amortization
(1,004,812
)
(1,018,597
)
Operating real estate, net
3,677,439
3,983,754
Real estate under development
194,222
167,051
Net investments in real estate
3,871,661
4,150,805
Notes receivable, net ($2,180 and $1,638 of allowance for credit losses as of June 30, 2026 and December 31, 2025, respectively)
154,501
154,892
Investments in and advances to unconsolidated affiliates
263,598
161,955
Other assets, net
194,661
223,980
Right-of-use assets - operating leases, net
21,589
23,594
Cash and cash equivalents
32,960
38,818
Restricted cash
16,272
18,081
Rents receivable, net
55,430
65,027
Assets of property held for sale
6,835
—
Total assets
$
4,617,507
$
4,837,152
Liabilities:
Mortgage and other notes payable, net
$
480,045
$
893,944
Unsecured notes payable, net
1,113,650
879,462
Unsecured line of credit
43,323
89,500
Accounts payable and other liabilities
229,641
273,479
Lease liabilities - operating leases
23,852
25,972
Dividends and distributions payable
29,185
28,526
Distributions in excess of income from, and investments in, unconsolidated affiliates
16,914
16,838
Total liabilities
1,936,610
2,207,721
Commitments and contingencies
Redeemable noncontrolling interests
4,499
9,113
Equity:
Common shares, $0.001 par value per share, authorized 200,000,000 shares, issued and outstanding 137,329,896 and 131,036,560 shares as of June 30, 2026 and December 31, 2025, respectively
137
131
Additional paid-in capital
2,829,749
2,710,651
Accumulated other comprehensive income
25,838
15,585
Distributions in excess of accumulated earnings
(519,027
)
(500,720
)
Total Acadia shareholders’ equity
2,336,697
2,225,647
Noncontrolling interests
339,701
394,671
Total equity
2,676,398
2,620,318
Total liabilities, redeemable noncontrolling interests, and equity
$
4,617,507
$
4,837,152
Acadia Realty Trust and Subsidiaries
Notes to Financial Highlights: