Acadia Realty Trust (AKR) Q3 2024 earnings summary

Executive summary

• Achieved a highly active and productive third quarter, with strong internal growth, record acquisition and leasing activity, and impactful external acquisitions driving performance.

• Owns and operates 204 retail properties, focusing on high-barrier, densely populated U.S. metros, with portfolio occupancy at 91.5% as of September 30, 2024.

• Averaged over 6% same-store NOI growth for the past three years, with continued momentum expected.

• Expanded presence in key markets including Manhattan (Bleecker Street), Williamsburg, Soho, Georgetown, and Dallas (Henderson Avenue).

• Investment management platform remains stable, with new partnerships and capital recycling as a focus.

Financial highlights

• Q3 2024 net income attributable to shareholders was $8.4M (EPS $0.07), compared to a loss of $1.4M (EPS $(0.02)) in Q3 2023.

• Funds from Operations (FFO) for Q3 2024 was $33.0M ($0.28/share), up from $26.8M ($0.26/share) in Q3 2023; FFO before special items was $37.1M ($0.32/share).

• Core same-store NOI growth of 5.9% for the quarter and 5.7% year-to-date, trending toward the upper end of 5%-6% annual guidance.

• Total revenues for Q3 2024 were $87.7M, up from $81.4M in Q3 2023.

• Core portfolio occupancy remained stable at 94.7% leased and 91.5%-91.7% occupied.

Outlook and guidance

• Expect continued strong internal growth, with a multi-year core internal growth goal in excess of 5%.

• Project 1% earnings accretion upon closing $270 million in acquisitions, rising to 3% upon stabilization in 2027-2028.

• Management expects to continue adding value through leasing momentum, development/redevelopment, and a strong pipeline.

• Inflation and interest rates remain risks, but most leases include rent escalations and expense pass-throughs to tenants.

• Full impact of $11.6 million incremental ABR from leasing pipeline expected in 2026.