NEW YORK--(BUSINESS WIRE)--Jan. 19, 2005--Acadia Realty Trust (NYSE:AKR) announced today the Federal tax treatment for 2004 distributions to holders of its common shares of beneficial interest ("Common Shares").

The income tax treatment for the 2004 distributions for Acadia Realty Trust, Common Share CUSIP # 004239109 traded on the NYSE under ticker symbol "AKR" is as follows:

                                                           Nontaxable
                          Total      Taxable  Unrecaptured   Return
  Record     Payable   Distribution  Ordinary Section 1250     of
   Date       Date      Per Share    Dividend     Gain      Capital
---------------------- ------------ --------- ------------ ----------

12/31/2003  1/15/2004       $0.065    $0.039       $0.021     $0.005
 3/31/2004  4/15/2004       $0.160    $0.095       $0.051     $0.014
 6/30/2004  7/15/2004       $0.160    $0.095       $0.051     $0.014
 9/30/2004 10/15/2004       $0.160    $0.095       $0.051     $0.014

Notes:
     1.  The Company paid a distribution of $0.16 per share on January
     15, 2004. The above amounts reflect that portion of the
     distribution that is reportable in 2004. The remaining
     portion was reportable in 2003.

     2.  The distribution paid January 18, 2005 to shareholders of
     record as of December 31, 2004 will be reportable in 2005.

Shareholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of Acadia Realty Trust's distributions.

Acadia Realty Trust, headquartered in White Plains, NY, is a fully integrated and self-managed real estate investment trust which specializes in the acquisition, redevelopment and operation of shopping centers which are anchored by grocery and value-oriented retail. Acadia currently owns, or has interests in, and operates 70 properties totaling approximately nine million square feet, located primarily in the Northeast, Mid-Atlantic and Midwest United States.

Certain matters in this press release may constitute forward-looking statements within the meaning of federal securities law and as such may involve known and unknown risk, uncertainties and other factors which may cause the actual results, performances or achievements of Acadia to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such forward-looking statements speak only as of the date of this document. Acadia expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Acadia's expectations with regard thereto or change in events, conditions or circumstances on which any such statement is based. The Company also refers you to the documents filed by the Company, from time to time, with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K, for a discussion of such risks and uncertainties.

For more information on Acadia Realty Trust, visit the Company's Web site at www.acadiarealty.com

CONTACT: Acadia Realty Trust
Investor Relations:
Jon Grisham, 914-288-8142
www.acadiarealty.com

SOURCE: Acadia Realty Trust