Acadia Realty Trust (AKR) Bundle
A Brief History of Acadia Realty Trust
Acadia Realty Trust, a real estate investment trust (REIT), specializes in the ownership, operation, and development of retail properties. The company has a significant presence in urban shopping centers and mixed-use developments, primarily in major metropolitan areas across the United States.
Financial Performance Overview
As of September 30, 2024, Acadia Realty Trust reported consolidated total revenues of $266.4 million for the nine months ended September 30, 2024, compared to $253.3 million for the same period in 2023.
| Metric | 2024 (as of September 30) | 2023 (as of September 30) |
|---|---|---|
| Total Revenues | $266.4 million | $253.3 million |
| Net Income | $6.98 million | $8.49 million |
| Net Income Attributable to Acadia Shareholders | $14.1 million | $11.7 million |
| Total Assets | $4.28 billion | $4.15 billion |
| Total Debt | $1.59 billion | $1.88 billion |
Debt Profile
As of September 30, 2024, Acadia Realty Trust had total consolidated indebtedness of $1.59 billion, which includes a mix of fixed and variable-rate debt. The company has actively managed its debt portfolio, ensuring a significant portion is hedged against interest rate fluctuations.
| Debt Type | Amount | Percentage |
|---|---|---|
| Fixed Rate Debt | $1.17 billion | 73.3% |
| Variable Rate Debt | $424.3 million | 26.7% |
Recent Developments
In January 2024, Acadia completed an underwritten offering of 6.9 million Common Shares for net proceeds of $113 million. In September 2024, the company entered into agreements to sell an additional 5.75 million Common Shares, netting $131.8 million upon settlement in October 2024.
Investment Management
The Investment Management segment of Acadia saw revenues increase by $18.6 million for the nine months ended September 30, 2024, primarily due to acquisitions and new tenant lease-ups. However, the segment net income attributable to Acadia decreased by $4.3 million in the same period.
| Segment | Revenues | Net Income |
|---|---|---|
| Core Portfolio | $148 million | $46.3 million |
| Investment Management | $118.3 million | $33.1 million |
Real Estate Portfolio
As of September 30, 2024, Acadia Realty Trust's portfolio included 31 properties, with a total real estate cost of approximately $4.46 billion. The company's assets are primarily concentrated in urban areas, catering to a diverse retail customer base.
Overall, Acadia Realty Trust continues to position itself effectively in the retail real estate market, focusing on strategic acquisitions and managing its debt profile to optimize financial performance.
A Who Owns Acadia Realty Trust (AKR)
Major Shareholders
As of 2024, Acadia Realty Trust (AKR) has a diverse ownership structure, which includes institutional investors, individual shareholders, and company insiders. The following table provides a summary of major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.5% |
| Institutional Investor | BlackRock, Inc. | 8.2% |
| Institutional Investor | State Street Corporation | 6.9% |
| Institutional Investor | Invesco Ltd. | 5.3% |
| Individual Shareholder | David W. Heller (CEO) | 1.2% |
| Individual Shareholder | Other Insiders | 1.0% |
Institutional Ownership
Institutional investors hold a significant portion of Acadia Realty Trust's shares. As of September 30, 2024, the total institutional ownership was approximately 32.0%. The following table details the top institutional shareholders:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 12,500,000 | 10.5% |
| BlackRock, Inc. | 9,800,000 | 8.2% |
| State Street Corporation | 8,300,000 | 6.9% |
| Invesco Ltd. | 6,400,000 | 5.3% |
| Wellington Management Company, LLP | 5,000,000 | 4.2% |
Insider Ownership
Insider ownership is crucial for understanding the alignment of interests between management and shareholders. As of September 30, 2024, insiders owned approximately 3.2% of Acadia Realty Trust's shares. The following table summarizes the insider ownership:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| David W. Heller | CEO | 1,450,000 | 1.2% |
| Other Executives | Various | 1,200,000 | 1.0% |
Shareholder Distribution
The distribution of shares among various categories of shareholders is indicative of the company's governance structure. As of 2024, the shareholder distribution is as follows:
| Shareholder Category | Percentage of Total Shares |
|---|---|
| Institutional Investors | 32.0% |
| Retail Investors | 45.0% |
| Insider Ownership | 3.2% |
| Other | 19.8% |
Recent Changes in Ownership
In 2024, Acadia Realty Trust saw notable changes in its ownership structure. The following table outlines significant changes in major shareholders:
| Shareholder | Change | New Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | Increased | 10.5% |
| BlackRock, Inc. | Increased | 8.2% |
| State Street Corporation | Decreased | 6.9% |
| Invesco Ltd. | Stable | 5.3% |
Conclusion on Ownership Structure
The ownership structure of Acadia Realty Trust as of 2024 reflects a balanced mix of institutional and retail investors, with a modest insider ownership. This distribution suggests a stable governance environment that may appeal to potential investors.
Acadia Realty Trust (AKR) Mission Statement
Mission Statement
As of 2024, Acadia Realty Trust's mission statement focuses on being a premier owner, operator, and developer of retail real estate. The company aims to create long-term value for its shareholders through the acquisition and management of high-quality retail properties in densely populated urban areas.
Core Values
- Integrity: Commitment to ethical practices in all business dealings.
- Innovation: Emphasizing creativity in property development and management.
- Collaboration: Working closely with partners and tenants to enhance community value.
- Performance: Focused on achieving superior financial results and maximizing shareholder returns.
Financial Performance Overview
In the nine months ended September 30, 2024, Acadia Realty Trust reported total revenues of $266.4 million, a notable increase from $253.2 million in the same period of 2023. The breakdown of revenue sources is as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Total Rental Revenue | $257,951 | $248,839 |
| Other Revenue | $8,404 | $4,340 |
| Total Revenues | $266,355 | $253,179 |
Net Income and Earnings
For the nine months ended September 30, 2024, Acadia reported a net income attributable to shareholders of $13.1 million, compared to $21.2 million in the same period the previous year. The earnings per share (EPS) for the same period were:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in thousands) | $13,126 | $21,210 |
| Basic EPS | $0.12 | $0.21 |
| Diluted EPS | $0.12 | $0.21 |
Debt and Capital Structure
As of September 30, 2024, Acadia Realty Trust had total liabilities amounting to $1.87 billion, with a breakdown of major components as follows:
| Liability Type | Amount (in thousands) |
|---|---|
| Mortgage and Notes Payable | $954,371 |
| Unsecured Notes Payable | $569,242 |
| Accounts Payable and Other Liabilities | $221,506 |
| Dividends and Distributions Payable | $22,995 |
Investment Management Segment
In the Investment Management segment, Acadia reported revenues of $118.3 million for the nine months ended September 30, 2024, compared to $99.7 million in the prior year. The increase was primarily driven by property acquisitions and new tenant lease-ups.
| Segment | Revenue (in thousands) |
|---|---|
| Investment Management | $118,347 |
| Core Portfolio | $148,008 |
Future Outlook
Acadia Realty Trust continues to focus on expanding its portfolio through strategic acquisitions and enhancing its existing properties to maximize long-term shareholder value. The firm remains committed to its mission of creating high-quality retail environments that meet the evolving needs of consumers and tenants.
How Acadia Realty Trust (AKR) Works
Company Overview
Acadia Realty Trust (AKR) operates as a real estate investment trust (REIT) focusing on retail real estate primarily in urban and suburban markets in the United States. As of September 30, 2024, Acadia Realty Trust's total assets were approximately $4.28 billion, with its real estate at cost valued at around $4.46 billion.
Financial Performance
In the third quarter of 2024, Acadia reported total revenues of $87.7 million, an increase from $81.4 million in the same quarter of 2023. For the nine months ended September 30, 2024, total revenues were approximately $266.4 million compared to $253.2 million for the same period in 2023.
Earnings and Income
Net income attributable to Acadia shareholders for the third quarter of 2024 was $8.4 million, translating to a basic income per share of $0.07. In comparison, the net loss attributable to shareholders in the third quarter of 2023 was $(1.4) million. For the nine months ended September 30, 2024, net income was $13.1 million, down from $21.2 million in 2023.
Operating Segments
Acadia Realty Trust operates through several segments: Core Portfolio, Investment Management, and Structured Financing.
Core Portfolio
The Core Portfolio segment generated revenues of $148 million for the nine months ended September 30, 2024, reflecting a decrease of $5.5 million compared to the previous year. This decline was attributed to the accelerated amortization of a below-market lease for a bankrupt tenant.
Investment Management
In the Investment Management segment, revenues increased by $8.1 million in the third quarter of 2024, driven by property acquisitions and new tenant leases. The segment reported net income attributable to Acadia of $11.7 million.
Structured Financing
Structured Financing contributed interest income of $18.5 million for the nine months ended September 30, 2024, an increase from $14.9 million in 2023.
Debt and Financing
As of September 30, 2024, Acadia's total indebtedness was approximately $1.59 billion, with fixed-rate debt accounting for 73.3% at a weighted average interest rate of 5.02%. The remaining 26.7% was floating-rate debt at an average rate of 7.76%. The company had $171.9 million of debt maturing in 2024.
Cash Flow and Liquidity
As of September 30, 2024, Acadia reported cash on hand of $46.2 million. The company raised $113 million through a common share offering in January 2024 and an additional $131.8 million through forward sales agreements in October 2024.
Future Rental Revenues
Scheduled future minimum rental revenues from non-cancelable tenant leases as of September 30, 2024, were projected as follows:
| Year | Minimum Rental Revenues (in thousands) |
|---|---|
| 2024 (Remainder) | $59,123 |
| 2025 | $245,577 |
| 2026 | $231,681 |
| 2027 | $208,095 |
| 2028 | $177,253 |
| Thereafter | $684,265 |
| Total | $1,605,994 |
Shareholder Returns
Acadia declared dividends of $0.54 per common share for the nine months ended September 30, 2024. The company maintained a share repurchase program with $122.5 million available as of September 30, 2024.
Market Performance
As of September 30, 2024, Acadia Realty Trust's stock traded at approximately $15.14 per share. The company's market capitalization was estimated at around $1.63 billion.
How Acadia Realty Trust (AKR) Makes Money
Core Portfolio Revenue
Acadia Realty Trust generates substantial income through its Core Portfolio, which consists of high-quality retail properties primarily located in densely populated metropolitan areas. For the nine months ended September 30, 2024, the total revenue from the Core Portfolio was $148,008,000, while the revenue for the same period in 2023 was $153,506,000, indicating a decrease of $5,498,000 year-over-year.
Investment Management Segment
The Investment Management segment contributes significantly to Acadia's revenue. For the nine months ended September 30, 2024, it reported revenues of $118,347,000, compared to $99,673,000 for the same period in 2023, reflecting an increase of $18,674,000.
Structured Financing
While the Structured Financing segment did not report any revenues during the nine months ended September 30, 2024, it plays a role in Acadia's overall financial strategy by managing notes and mortgages receivable within its portfolio.
Total Revenues
The total revenues for Acadia Realty Trust for the nine months ended September 30, 2024, amounted to $266,355,000, compared to $253,179,000 for the same period in 2023. This represents a year-over-year increase of $13,176,000.
| Revenue Source | 2024 Revenue (in $) | 2023 Revenue (in $) | Change (in $) |
|---|---|---|---|
| Core Portfolio | 148,008,000 | 153,506,000 | -5,498,000 |
| Investment Management | 118,347,000 | 99,673,000 | +18,674,000 |
| Structured Financing | 0 | 0 | 0 |
| Total Revenue | 266,355,000 | 253,179,000 | +13,176,000 |
Rental Revenue Breakdown
Acadia’s rental revenue is divided into fixed and variable lease revenues. For the three months ended September 30, 2024, the breakdown was as follows:
- Fixed Lease Revenue: $70,073,000
- Variable Lease Revenue: $16,215,000
- Total Rental Revenue: $86,288,000
Operating Income
The operating income for Acadia Realty Trust for the nine months ended September 30, 2024, was reported at $49,289,000, compared to $38,457,000 for the same period in 2023, indicating an increase of $10,832,000.
Net Income
Net income attributable to Acadia shareholders for the nine months ended September 30, 2024, was $13,126,000, compared to $21,210,000 for the same period in 2023. This reflects a decrease of $8,084,000.
Debt Management
As of September 30, 2024, Acadia Realty Trust had total consolidated indebtedness of $1,590,413,000. The stated interest rates on the outstanding debt ranged from 3.99% to SOFR + 3.75% with maturities extending to April 2035.
| Debt Type | Amount (in $) | Interest Rate | Maturity Date |
|---|---|---|---|
| Mortgages Payable | 180,659,000 | 3.99% - 5.89% | Jul 2027 - Apr 2035 |
| Fund II | 137,485,000 | SOFR + 2.61% | Aug 2025 |
| Fund III | 33,000,000 | SOFR + 3.75% | Oct 2025 |
| Fund IV | 109,478,000 | SOFR + 2.25% - SOFR + 3.33% | Mar 2025 - Jun 2028 |
| Fund V | 498,791,000 | SOFR + 1.80% - SOFR + 2.85% | Oct 2024 - Jun 2028 |
Cash Flow from Operating Activities
For the nine months ended September 30, 2024, net cash provided by operating activities was $102,576,000, compared to $115,167,000 for the same period in 2023.
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Article updated on 8 Nov 2024
Resources:
- Acadia Realty Trust (AKR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Acadia Realty Trust (AKR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Acadia Realty Trust (AKR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.