Acadia Realty Trust Reports First Quarter 2016 Operating Results
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Acadia Realty Trust Reports First Quarter 2016 Operating Results
Acadia operates dual platforms, comprised of a high-quality core real estate portfolio (“Core Portfolio”), which owns and operates meaningful concentrations of assets in the nation’s most dynamic urban and street-retail corridors, and a series of discretionary, institutional funds (“Funds”) that target opportunistic and value-add investments.
HIGHLIGHTS
-
Earnings: Generated funds from operations (“FFO”) per share of
$0.41 for the first quarter; generated earnings per share (“EPS”) of$0.40 for the first quarter - Core Portfolio Operating Results: Excluding redevelopments, generated same-property net operating income (“NOI”) growth of 3.6% for the first quarter, compared to 2015; achieved a leased rate of 96.6% as of quarter end
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Core Portfolio Acquisitions: During 2016, acquired, or entered
into contracts to acquire,
$271.6 million of urban/street-retail property value, already exceeding the low end of full-year 2016 core acquisition guidance; this includes$115.3 million completed during first quarter 2016 -
Fund Dispositions: During 2016, completed
$153.8 million of Fund III dispositions, generating a blended 42.3% IRR and 3.43x multiple; this includes$107.3 million completed during first quarter 2016 -
Fund III Promote: During 2016, generated approximately
$6.8 million (approximately$0.09 per share) of net promote income for the Company from Fund III asset sales, including$4.7 million (approximately$0.06 per share) recognized during first quarter 2016 -
Fund Acquisitions: During first quarter 2016, Fund IV completed
$27.8 million of street-retail investments -
Balance Sheet: Maintained conservative leverage levels by
matchfunding acquisitions, raising
$189.5 million of net proceeds during 2016 through operating partnership unit (“OP unit”) issuance, a public offering on a forward basis and the Company’s at-the-market (“ATM”) facility
“I am pleased to report that 2016 is off to a strong start,” stated
FINANCIAL RESULTS
FFO for the quarter ended
Net income for the quarter ended
Please refer to the tables and notes accompanying this press release for further details on operating results and additional disclosures related to FFO and net income.
CORE PORTFOLIO
- Differentiated Core Portfolio Continues To Deliver Solid Operating Results
-
Acquired, Or Entered Into Contracts To Acquire,
$271.6 Million Of Urban/Street-Retail Properties
Core Operating Results
Excluding redevelopment activities, same-property NOI in the Core
Portfolio increased 3.6% for the quarter ended
The Core Portfolio was 96.3% occupied and 96.6% leased as of
During the quarter, the Company generated a 9.5% increase in average rents on a GAAP basis, and a 4.2% increase on a cash basis, on 12 new and renewal leases aggregating 43,000 square feet.
Core Acquisitions
During and subsequent to first quarter 2016, the Company acquired, or
entered into contracts to acquire,
During first quarter 2016, the Company completed
Carlyle House,
The Company currently has
Street-Retail Portfolio. As previously disclosed, subsequent to
quarter end, the Company entered into a contract to acquire a portfolio
of five street-retail properties, located in one of its current major
urban markets, for
No assurance can be given that the Company will successfully close on acquisitions under contract, which are subject to customary closing conditions and, in certain instances, lender approval of the assumption of existing mortgage debt.
FUND PLATFORM
-
Continued The Profitable Monetization Of Fund III, With
$153.8 Million Of Assets Sold During 2016; These Profitable Asset Sales Generated Approximately$6.8 Million Of Net Promote Income
Fund Dispositions
During and subsequent to first quarter 2016, the Company completed
Heritage Shops at
Cortlandt Town Center,
Through quarter end, Fund III has returned 127% of invested capital, net of promote.
Fund III Promote
Year to date, the Company has generated approximately
Fund Acquisitions
During first quarter 2016, the Company, on behalf of Fund IV, completed
Restaurants at
Fillmore-Union Collection,
BALANCE SHEET
-
Maintained Conservative Leverage Levels By Matchfunding
Acquisitions, Raising
$189.5 Million Of Net Proceeds During 2016
The Company fueled its current year-to-date acquisitions and pipeline –
and maintained its conservative leverage levels – by sourcing
Additionally, in
The aggregate new capital was raised at an average gross price of
By effectively matchfunding this core activity, the Company has further
strengthened its already-solid, low-leveraged balance sheet. As of
GUIDANCE
The Company reaffirms its previously-announced 2016 guidance for FFO per
share of a range of
CONFERENCE CALL
Management will conduct a conference call on
Live Conference Call: | ||
Date: | Wednesday, April 27, 2016 | |
Time: | 12:00 PM ET | |
Dial#: | 877-791-3298 | |
Passcode: | “Acadia Realty” or “81679955” | |
Webcast (Listen-only): |
www.acadiarealty.com under Investors, Presentations & Events |
|
Phone Replay: | ||
Dial#: | 855-859-2056 | |
Passcode: | “81679955#” | |
Available Through: | Wednesday, May 4, 2016 | |
Webcast Replay: |
www.acadiarealty.com under Investors, Presentations & Events |
|
|
About
Safe Harbor Statement
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 risks, uncertainties and other factors that
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.
These forward-looking statements include statements regarding Acadia’s
future financial results and its ability to capitalize on potential
investment opportunities. Factors that could cause the Company’s
forward-looking statements to differ from its future results include,
but are not limited to, those discussed under the headings “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in the Company’s most recent annual
report on Form 10-K filed with the
ACADIA REALTY TRUST AND SUBSIDIARIES Consolidated Statements of Operations1 (dollars and Common Shares in thousands, except per share data) |
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For the Quarters ended
|
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Revenues | 2016 | 2015 | ||||||
Rental income | $ | 38,590 | $ | 38,187 | ||||
Interest income | 4,638 | 3,408 | ||||||
Expense reimbursements | 7,959 | 10,066 | ||||||
Other property income | 1,295 | 669 | ||||||
Other income | 201 | 151 | ||||||
Total revenues | 52,683 | 52,481 | ||||||
Operating expenses | ||||||||
Property operating | 5,537 | 7,731 | ||||||
Other operating | 291 | 2,120 | ||||||
Real estate taxes | 6,165 | 6,292 | ||||||
General and administrative | 9,352 | 7,532 | ||||||
Depreciation and amortization | 16,849 | 13,658 | ||||||
Total operating expenses | 38,194 | 37,333 | ||||||
Operating income | 14,489 | 15,148 | ||||||
Equity in earnings of unconsolidated affiliates | 1,954 | 6,593 | ||||||
Loss on debt extinguishment |
-- |
(109 | ) | |||||
Gain on disposition of properties | 65,393 | 27,143 | ||||||
Interest expense and other finance costs | (8,038 | ) | (8,821 | ) | ||||
Income from continuing operations before income taxes | 73,798 | 39,954 | ||||||
Income tax benefit (provision) | 77 | (1,417 | ) | |||||
Net income | 73,875 | 38,537 | ||||||
ACADIA REALTY TRUST AND SUBSIDIARIES Consolidated Statements of Operations, Continued1 (dollars and Common Shares in thousands, except per share data) |
||||||||
For the Quarters ended |
||||||||
2016 | 2015 | |||||||
Net income attributable to noncontrolling interests | (44,950 | ) | (21,990 | ) | ||||
Net income attributable to Common Shareholders | $ | 28,925 | $ | 16,547 | ||||
Less: Net Income attributable to participating securities | (365 | ) | (240 | ) | ||||
Net Income attributable to Common Shareholders – basic | $ | 28,560 | $ | 16,307 | ||||
Weighted average shares for diluted earnings per share | 71,200 | 68,360 | ||||||
Net Earnings per share – basic and diluted 2 | $ | 0.40 | $ | 0.24 | ||||
ACADIA REALTY TRUST AND SUBSIDIARIES Reconciliation of Net Income to Funds From Operations1,3 (dollars and Common Shares in thousands, except per share data) |
||||||||
For the Quarters ended
|
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2016 | 2015 | |||||||
Net income attributable to Common Shareholders | $ | 28,925 | $ | 16,547 | ||||
Depreciation of real estate and amortization of leasing costs | ||||||||
(net of noncontrolling interests' share): | 15,328 | 10,936 | ||||||
Gain on disposition (net of noncontrolling interests’ share): | (15,140 | ) | (5,402 | ) | ||||
Income attributable to noncontrolling interests’ in | ||||||||
Operating Partnership | 1,855 | 967 | ||||||
Distributions – Preferred OP Units | 139 | 6 | ||||||
Funds from operations attributable to Common Shareholders and | ||||||||
Common OP Unit holders | $ | 31,107 | $ | 23,054 | ||||
Funds from operations per share – Diluted | ||||||||
Weighted average Common Shares and OP Units4 | 75,845 | 72,586 | ||||||
Funds from operations, per Common Share and Common OP Unit | $ | 0.41 | $ | 0.32 | ||||
ACADIA REALTY TRUST AND SUBSIDIARIES Reconciliation of Operating Income to Net Property Operating Income (“NOI”)1 (dollars in thousands) |
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For the Quarters ended
March 31, |
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2016 | 2015 | |||||||
Operating income | $ | 14,489 | $ | 15,148 | ||||
Add back: | ||||||||
General and administrative | 9,352 | 7,532 | ||||||
Depreciation and amortization | 16,849 | 13,658 | ||||||
Impairment of asset |
-- |
-- | ||||||
Less: | ||||||||
Interest income | (4,638 | ) | (3,408 | ) | ||||
Above/below market rent, straight-line rent and other adjustments | (3,513 | ) | (568 | ) | ||||
Consolidated NOI | 32,539 | 32,362 | ||||||
Noncontrolling interest in NOI | (7,052 | ) | (9,371 | ) | ||||
Pro-rata share of NOI | 25,487 | 22,991 | ||||||
Operating Partnerships’ interest in Opportunity Funds | (1,289 | ) | (1,582 | ) | ||||
Operating Partnerships’ share of unconsolidated joint ventures1 | 3,269 | 2,513 | ||||||
NOI – Core Portfolio | $ | 27,467 | $ | 23,922 | ||||
Note: | ||||||||
1Does not include share of unconsolidated joint ventures within Opportunity Funds | ||||||||
ACADIA REALTY TRUST AND SUBSIDIARIES Consolidated Balance Sheets1 (dollars in thousands) |
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As of | ||||||||
March 31,
|
December 31,
|
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ASSETS | ||||||||
Operating real estate | ||||||||
Land | $ | 497,830 | $ | 514,120 | ||||
Buildings and improvements | 1,586,398 | 1,593,350 | ||||||
Construction in progress | 22,227 | 19,239 | ||||||
2,106,455 | 2,126,709 | |||||||
Less: accumulated depreciation | 286,880 | 298,703 | ||||||
Net operating real estate | 1,819,575 | 1,828,006 | ||||||
Real estate under development | 639,759 | 609,574 | ||||||
Notes receivable and preferred equity investments, net | 154,679 | 147,188 | ||||||
Investments in and advances to unconsolidated affiliates | 210,309 | 173,277 | ||||||
Cash and cash equivalents | 84,860 | 72,776 | ||||||
Cash in escrow | 23,185 | 26,444 | ||||||
Restricted cash | 10,840 | 10,840 | ||||||
Rents receivable, net | 41,844 | 40,425 | ||||||
Deferred charges, net | 21,776 | 22,568 | ||||||
Acquired lease intangibles, net | 64,396 | 52,593 | ||||||
Prepaid expenses and other assets | 50,791 | 48,628 | ||||||
Assets of properties held for sale | 26,313 | - | ||||||
Total assets | $ | 3,148,327 | $ | 3,032,319 | ||||
LIABILITIES | ||||||||
Mortgage and other notes payable, net | $ | 955,003 | $ | 1,050,051 | ||||
Unsecured notes payable, net | 341,555 | 308,555 | ||||||
Distributions in excess of income from, and investments in, unconsolidated affiliates | 23,613 | 13,244 | ||||||
Accounts payable and accrued expenses | 37,962 | 38,754 | ||||||
Dividends and distributions payable | 19,343 | 37,552 | ||||||
Acquired lease intangibles, net | 36,373 | 31,809 | ||||||
Other liabilities | 106,002 | 31,000 | ||||||
Total liabilities | 1,519,851 | 1,510,965 | ||||||
EQUITY | ||||||||
Shareholders’ Equity | ||||||||
Common shares, $.001 par value, authorized 100,000,000 shares; issued and outstanding 71,566,457 and 70,258,415 shares, respectively | 72 | 70 | ||||||
Additional paid-in capital | 1,140,914 | 1,092,239 | ||||||
Accumulated other comprehensive loss | (11,467 | ) | (4,463 | ) | ||||
Retained earnings | 23,695 | 12,642 | ||||||
Total shareholders’ equity | 1,153,214 | 1,100,488 | ||||||
Noncontrolling interests | 475,262 | 420,866 | ||||||
Total equity | 1,628,476 | 1,521,354 | ||||||
Total liabilities and equity | $ | 3,148,327 | $ | 3,032,319 | ||||
ACADIA REALTY TRUST AND SUBSIDIARIES
(dollars and Common Shares in thousands, except per share data)
Notes to Financial Highlights:
1 For additional information and analysis concerning
the Company’s results of operations, reference is made to the Company’s
Quarterly Supplemental Disclosure furnished on Form 8-K to the
2 Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue Common Shares were exercised or converted into Common Shares. The effect of the conversion of Common OP Units is not reflected in the above table as they are exchangeable for Common Shares on a one-for-one basis. The income allocable to such units is allocated on the same basis and reflected as noncontrolling interests in the consolidated financial statements. As such, the assumed conversion of these units would have no net impact on the determination of diluted earnings per share.
3 The Company considers funds from operations (“FFO”)
as defined by the
4 In addition to the weighted average Common Shares
outstanding, basic and diluted FFO also assume full conversion of a
weighted average 4,523 and 3,906 OP Units into Common Shares for the
quarters ended
View source version on businesswire.com: http://www.businesswire.com/news/home/20160426006839/en/
Source:
Acadia Realty Trust
Amy L. Racanello, 914-288-8100