SEC Filing - Acadia Realty Trust

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): February 20, 2018

ACADIA REALTY TRUST

(Exact name of registrant as specified in its charter)



Maryland	1-12002	23-2715194
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

411 Theodore Fremd Avenue

Suite 300

Rye, New York 10580

(Address of principal executive offices) (Zip Code)

(914) 288-8100

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425 )

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o



Item 1.01.	Entry into a Material Definitive Agreement.

The information set forth below under Item 2.03 of this Current Report on Form 8-K is hereby incorporated in this Item 1.01 by reference.



Item 2.02.	Results of Operations and Financial Condition.

On February 21, 2018, Acadia Realty Trust (the “Company”) issued a press release announcing its consolidated financial results for the quarter ended December 31, 2017. A copy of this press release is attached to this report on Form 8-K as Exhibit 99.1 and incorporated herein by reference. In addition, on February 21, 2018, the Company made available supplemental information concerning the ownership, operations and portfolio of the Company as of and for the quarter ended December 31, 2017. A copy of this supplemental information is attached to this report on Form 8-K as Exhibit 99.2 and incorporated herein by reference.

The information included in this Item 2.02, including the information included in Exhibits 99.1 and 99.2 attached hereto, is intended to be furnished solely pursuant to this Item 2.02, and is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference into any filing under the Securities Act of 1933, as amended (“Securities Act”) or the Exchange Act, or otherwise subject to the liabilities of Sections 11 and 12 (a) (2) of the Securities Act.



Item 2.03.	Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On February 20, 2018, Acadia Realty Limited Partnership (the “Operating Partnership”) and its general partner, the Company, entered into an amended and restated senior unsecured revolving credit and term loan facility (the “Facility”) with Bank of America, N.A., as administrative agent and swing line lender, PNC Bank, National Association, Wells Fargo Bank, National Association, and TD Bank, N.A. as co-documentation agents, Merrill Lynch, Pierce, Fenner & Smith Incorporated, as joint lead arranger and Sole Bookrunner, PNC Capital Markets LLC and Wells Factor Securities, LLC as joint lead arrangers and the lenders party thereto. The Facility amends and restates the credit facility dated as of June 27, 2016, by and among the Operating Partnership, the Company, Bank of America, N.A., as administrative agent, and the other parties named therein.

Amount. The Facility is in the original principal amount of up to $500 million, which consists of a $150 million revolving credit facility and a $350 million term loan facility. The Operating Partnership may request the Facility be increased through one or more increases in the revolving credit facility or one or more increases in the term loan facility, for a maximum aggregate principal amount not to exceed $650 million.

Guarantors. The Company and certain of the Operating Partnership’s subsidiaries are guarantors of the Operating Partnership’s obligations under the Facility.

The foregoing description of the Facility is qualified in its entirety by the full terms and conditions of the Amended and Restated Credit Agreement governing the Facility, a copy of which will be attached as an exhibit to the Company’s 10-K for the fiscal year 2017 and is incorporated herein by reference.



Item 8.01.	Other Items.

On February 20, 2018, the Board of Trustees of the Company elected to terminate the Company’s existing share repurchase program and authorized a new common share repurchase program under which the Company may repurchase, from time to time, up to a maximum of $200.0 million of the Company’s common shares. The shares may be repurchased in the open market or in privately negotiated transactions. The timing and actual number of shares repurchased will depend on a variety of factors, including share price in relation to the estimated value of the Company’s assets, corporate and regulatory requirements, market conditions and other corporate liquidity and financing requirements and priorities. The common share repurchase program does not obligate the Company to repurchase any specific number of share and may be suspended or terminated at any time at the Company’s discretion without prior notice.



Item 9.01.	Financial Statements and Exhibits.

(d) Exhibits



Exhibit Number	Description
99.1	Press release of the Company dated February 21, 2018.
99.2	Financial and Operating Reporting Supplement of the Company for the quarter ended December 31, 2017.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



Dated:	ACADIA REALTY TRUST (Registrant)
February 22, 2018	By: /s/ John Gottfried Name: John Gottfried Title: Sr. Vice President and Chief Financial Officer

Exhibit

Exhibit 99.1

ACADIA REALTY TRUST REPORTS FOURTH QUARTER AND

FULL YEAR 2017 OPERATING RESULTS

RYE, NY (February 21, 2018) - Acadia Realty Trust (NYSE:AKR) (“Acadia” or the “Company”) today reported operating results for the quarter and year ended December 31, 2017. All per share amounts are on a fully-diluted basis.

Acadia operates dual platforms, comprised of a high-quality core real estate portfolio (“Core Portfolio”), which owns and operates 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.

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.

Highlights


•	Earnings: Generated earnings per share of $0.25 for the fourth quarter. Funds from operations (“FFO”) per share was $0.35 before acquisition-related costs, and gains/losses on sale or impairment of depreciated and non-operating properties for the fourth quarter


•	Core Portfolio Operating Results: Reported flat same-property net operating income growth for the year and (1.7)% for the fourth quarter (excluding redevelopment), driven by the previously-reported recapture of occupancy during 2017 which impacted period-over-period comparability. Reported a leased occupancy rate of 95.3% as of December 31, 2017 compared to 96.3% at December 31, 2016


•	Structured Finance Investments: The Company received repayments of approximately $32 million of structured finance investments during 2017 and an additional $26 million in January 2018


•	Fund Acquisitions: Fund V acquired a high-yield investment during the fourth quarter for $62 million; 2017 Fund acquisition volume totaled $203 million


•	Fund Dispositions: Completed $240 million of Fund dispositions during the fourth quarter; 2017 disposition volume totaled $346 million across Funds II, III and IV


•	Fund III Promote: During 2017, generated approximately $1 million, or $0.01 per share, of net promote income for the Company from Fund III asset sales


•	Balance Sheet: Acadia did not issue any equity during 2017. Subsequent to year end, the Company extended the maturity of its corporate unsecured facility resulting in reduced borrowing costs and improved flexibility. No additional proceeds were obtained


•	Share Repurchase Program: The Company’s Board of Trustees authorized a common share repurchase program. Under the program, the Company may purchase up to $200 million of its common stock as market conditions warrant. The shares may be purchased in the open market or in privately negotiated transactions

“Our fourth-quarter operating results were in-line with our expectations and, looking ahead, our company’s long-term growth outlook is strong,” stated Kenneth F. Bernstein, President and CEO of Acadia Realty Trust. “Our high-quality core portfolio, concentrated in five key gateway markets, has several important organic growth opportunities, including contractual rent increases, redevelopment and densification. In the fund platform, we were net sellers in 2017, successfully monetizing our stabilized investments while also finding select new investment opportunities consistent with our high-yield criteria. Most importantly, last year, we continued to strengthen our already-strong balance sheet; as such, we enter 2018 well capitalized and with more than $1 billion of fund buying power.”

FINANCIAL RESULTS

Net Income

Net income attributable to common shareholders for the quarter ended December 31, 2017 was $21 million, or $0.25 per share, inclusive of $7 million on a pro rata basis, or $0.08 per share, attributable to an aggregate gain on dispositions of Fund properties net of related impairment charges and $6 million, or $0.07 per share, attributable to a Core gain on change in control as discussed below; partially offset by less than $1 million, or $0.01 per share, of acquisition costs. In a series of non-cash transactions during the year ended December 31, 2017, the Company converted approximately $93 million of a structured finance investment into an incremental equity ownership in two of its Core Properties, one of which constituted a change of control resulting in a gain of $6 million during the fourth quarter. Net income attributable to common shareholders for the quarter ended December 31, 2016 was $20 million, or $0.24 per share, reflecting the effect of $9 million on a pro rata basis, or $0.11 per share, of gains from dispositions of real estate and $1 million, or $0.01 per share, of acquisition expenses.

Net income attributable to common shareholders for the year ended December 31, 2017 was $61 million or $0.73 per share inclusive of $11 million on a pro rata basis, or $0.14 per share, attributable to an aggregate gain on dispositions of Fund properties net of related impairment charges and $6 million, or $0.07 per share, attributable to a Core gain on change in control; partially offset by approximately $1 million, or $0.01 per share, of acquisition expenses. Net income attributable to common shareholders for the year ended December 31, 2016 was $73 million, or $0.94 per share, which included $28 million on a pro rata basis, or $0.37 per share, of gains from two Fund property dispositions.

FFO (As Defined by NAREIT)

FFO for the quarter ended December 31, 2017 was $33 million, or $0.37 per share compared to $34 million, or $0.39 per share for the quarter ended December 31, 2016.

FFO for the year ended December 31, 2017 was $135 million, or $1.51 per share compared to $117 million, or $1.44 per share, for the year ended December 31, 2016.

FFO (As Adjusted for Special Items)

FFO before the pro rata impact of acquisition-related costs, and gains/losses on sale or impairment of depreciated and non-operating properties for the quarter ended December 31, 2017 was $31 million, or $0.35 per share, which excludes the net $0.02 per share effect of a $6 million gain on change in control partially offset by $3 million of impairment charges and approximately $1 million of acquisition expenses. This compares to FFO before acquisition-related costs for the quarter ended December 31, 2016 of $35 million, or $0.40 per share, which excludes $1 million, or $0.01 per share, of acquisition expenses and includes approximately $3 million, or $0.04 per share, of net promote income.

FFO before the pro rata impact of acquisition-related costs, and gains/losses on sale or impairment of depreciated and non-operating properties for the year ended December 31, 2017 was $133 million, or $1.50 per share, which excludes the net $0.01 per share effect of a $6 million gain on change in control partially offset by $3 million of impairment charges and $1 million of acquisition expenses. This compares to FFO before acquisition-related costs, retirement related costs and gains/losses on sale or impairment of depreciated and non-operating properties for the year ended December 31, 2016 of $126 million, or $1.55 per share, which excludes the net $0.11 per share effect of $5 million of acquisition expenses and $4 million of retirement charges and includes approximately $10 million, or $0.13 per share, of net promote income.

CORE PORTFOLIO

Core Operating Results

Reported flat same-property NOI in the Core Portfolio for the year and (1.7)% for the fourth quarter ended December 31, 2017, driven by the previously-reported recapture of occupancy during 2017 which impacted period-over-period comparability. Same-property NOI is compared to the same periods in 2016 and excludes redevelopment activities.

The Core Portfolio was 93.9% occupied and 95.3% leased as of December 31, 2017, compared to 94.2% occupied and 95.0% leased as of September 30, 2017 and 96.2% occupied and 96.3% leased as of December 31, 2016. The leased rate includes space that is leased but not yet occupied.

During the fourth quarter, the Company generated a 22.5% increase in average rents on a GAAP basis, and a 13.9% increase on a cash basis, on 18 new and renewal leases aggregating 101,000 square feet.

FUND PLATFORM

Fund Acquisitions

During 2017, the Company completed $203 million of Fund acquisitions, including $62 million completed during fourth quarter 2017 as follows:

Fairlane Green, Allen Park, MI (Fund V). In December 2017, Fund V acquired a 270,000-square foot shopping center, located in Allen Park, MI (Detroit MSA), for $62 million. The property is 100% leased, and its anchors include TJ Maxx, Michaels, and Old Navy. This investment is consistent with the Fund platform’s high-yield opportunistic strategy.

In February 2018, the Company completed a $45 million Fund acquisition as follows:

Trussville Promenade, Trussville, AL (Fund V). In February 2018, Fund V acquired a 464,000-square foot shopping center, located in Trussville, AL (Birmingham MSA), for $45 million. The property is 95% leased and its anchors include Walmart, Marshalls, and Ross Dress for Less. This investment is consistent with the Fund platform’s high-yield opportunistic strategy.

Fund Dispositions

During 2017, the Company completed $346 million of Fund dispositions, including $240 million completed during fourth quarter 2017 as follows:

260 E 161st St, Bronx, NY (Fund II). In December 2017, Fund II completed the sale of 260 E 161st St in Bronx, NY for $106 million. This compares to an all-in cost basis of $88 million. During its 12.4-year hold period, the fund successfully converted all the building’s street-level space from office to higher-value retail; at exit, the 21,000 square feet of retail space was 100% leased to Walgreens, Starbucks, and Dunkin Donuts, among others. The property also has 235,000 square feet of office space, and the fund executed new leases for 71% of this space. This sale generated a 1.6x multiple on the fund’s equity investment, and a $37 million profit.

32 E Broughton St, Savannah, GA (Fund IV). In December 2017, Fund IV completed the sale of another property in its Broughton St Collection in Savannah, GA for $2 million. This mixed-use property is 3,000 square feet and 100% occupied.

1151 3rd Ave, New York, NY (Fund IV). In November 2017, Fund IV sold 1151 3^rd Ave, a 13,000-square foot, five-story building located at the corner of 67th St and 3rd Ave on the Upper East Side of Manhattan, for $27 million. This compares to an all-in cost basis of $22 million. In October 2013, the fund acquired this 53%-leased building that had below-market leases and near-term lease expirations. During its 4.1-year hold period, the fund recaptured the street-

level retail space from Lucky Brand Jeans and re-leased it to apparel retailer Vineyard Vines at more than double the rent. Acadia also executed all new leases for the upper levels with indoor cycling club Flywheel and two other boutique fitness operators. This sale generated a 1.7x multiple on the fund’s equity investment.

7 Dekalb (City Point Residential Tower 1), Brooklyn, NY (Fund II). As previously reported, in October 2017, Fund II, in partnership with Washington Square Partners and BFC Partners, completed the sale of 7 Dekalb (City Point’s Residential Tower 1) in Brooklyn, NY for $96 million to the Brodsky Organization. 7 Dekalb has 23 stories and 250 apartments, of which 200 are affordable units for low-income and middle-income tenants. At exit, the property was fully leased. In mid-2010, Fund II and Washington Square Partners (collectively, the “City Point JV”) opportunistically acquired all of City Point’s residential component, totaling 1.1 million square feet of development rights. 7 Dekalb is the last of three towers sold by the City Point JV.

Broughton St Collection (4 properties*), Savannah, GA (Fund IV). As previously reported, in October 2017, Fund IV completed the sale of four properties in its Broughton St Collection in Savannah, GA for $10 million. The four sold properties total 17,000 square feet and are 100% occupied; Vineyard Vines, L’Occitane, and Savannah Taphouse are the key retail tenants.

*301 W Broughton St, 103 W Broughton St, 101 W Broughton St, and 125 E Broughton St

In January 2018, the Company completed an $8 million Fund disposition as follows:

108-110 W Broughton St, Savannah, GA (Fund IV). In January 2018, Fund IV completed the sale of another two properties in its Broughton St Collection in Savannah, GA for $8 million. The mixed use properties total 11,000 square feet and are 100% occupied; Bluemercury and Tommy Bahama are the key retail tenants. To date, Fund IV has sold seven of 23 properties in its Broughton St Collection, aggregating 31,000 square feet of approximately 200,000 square feet of retail, residential, and office space.

Acadia does not report return metrics for partial sales of its investments.

The Fund platform also has $26 million of dispositions under contract (the “Pending Dispositions”), which resulted in an impairment charge of approximately $3 million representing the Company’s proportionate ownership interest. As the Pending Dispositions are subject to customary closing conditions, no assurance can be given that the Company will successfully close on the Pending Dispositions.

Fund Promote

During the year ended December 31, 2017, the Company generated $1 million, or $0.01 per share, of net promote income from Fund III. No promote was recognized in the fourth quarter of 2017.

BALANCE SHEET

The Company did not issue any equity during 2017. During 2018, the Company completed a $500 million Senior Unsecured Credit Facility (the “Credit Facility”), comprised of a $150 million senior unsecured revolving credit facility (the “Revolver”), and a $350 million senior unsecured term loan (the “Term Loan”). The Credit Facility refinances the Company’s existing $300 million credit facility comprised of a $150 million revolver and $150 million term loan. In addition, the Credit Facility will pay down and replace $150 million in bilateral unsecured credit facilities and approximately $50 million in secured financings. The Revolver and Term Loans extended the maturity dates of the existing credit facility through March 2022 and 2023, respectively, with a reduction in all-in pricing and improvements to market terms and conditions.

The Company has maintained its solid, low-leveraged balance sheet. As of December 31, 2017, the Company’s net debt to EBITDA ratio for the Core Portfolio was 4.5x. Including its pro-rata share of Fund debt, the Company’s net debt to EBITDA ratio was 5.2x as of the same date.

2018 GUIDANCE

The following guidance is based upon our current view of existing market conditions and assumptions for the year ending December 31, 2018. The Company forecasts that its 2018 annual earnings per share will range from $0.37 to $0.48 and 2018 FFO per share will range from $1.33 to $1.45. These forecasts, and the comparable 2017 FFO, both presented below, are before any acquisition expenses and gains/losses and impairments related to nondepreciable real estate.



	2018 Guidance Forecast
	Low					High					2017 Actual
(dollars in millions, except per share amounts)	$ Millions			$/Share		$ Millions			$/Share		$ Millions			$/Share
Property NOI:
Core	$	132.8				$	133.4				$	131.7
Fund	12.3					12.8					10.3
Straight-line and above/below market rents	11.3					12.2					15.2
Interest income (Structured Finance Portfolio)	8.9					8.9					22.0
Fund fee income, net of taxes	20.9					23.2					23.4
Interest expense, net of capitalized interest ^(a)	(39.6		)			(38.7		)			(38.5		)
General and administrative	(31.5		)			(32.0		)			(31.7		)
Non-real estate depreciation and other expenses	(0.6		)			(0.6		)			(0.7		)
FFO, prior to transactional activity	$	114.5		$	1.29	$	119.2		$	1.34	$	131.7		$	1.48

Core acquisitions, Structured Financing investments and share repurchases ^(b)				—					0.03		—			—
Fund acquisitions, and related fees ^(c)				0.01					0.02		—			—
Net Promote and other transactional income ^(d)				0.03					0.06		1.7			0.02
2018 FFO Per Share Guidance Range				$	1.33				$	1.45	$	133.4		$	1.50

__________


(a)	Inclusive of interest expense, amortization of finance costs, above and below market interest and capital lease interest


(b)	Core, Structured Financing investments and potential share repurchases are $0 to $275 million in our low and high range, respectively


(c)	Gross Fund acquisitions are $200 million to $700 million in our low and high range, respectively


(d)	Represents net promote income from Fund III in the second half of 2018, in addition to other potential transactional activity

The Company’s 2018 operating assumptions are as follows:


•	Growth in same-property NOI (excluding redevelopments) for the first half of 2018 of negative 2% to 0%, followed by growth of 2% to 7% in the second half of 2018 for annual 2018 growth ranging from 1% to 3%. The variability and range of estimates is dependent upon the lease up of certain key leases which continues to impact our period-over-period comparability


•	The Company does not expect any of its core redevelopment projects to materially contribute to earnings in 2018

CONFERENCE CALL

Management will conduct a conference call on Thursday, February 22, 2018 at 10:00 AM ET to review the Company’s earnings and operating results. Dial-in and webcast information is listed below.

Live Conference Call:

Date: Thursday, February 22, 2018

Time: 10:00 AM ET

Dial#: 844-309-6711

Passcode: “Acadia Realty” or “7498014”

Webcast (Listen-only): www.acadiarealty.com under Investors, Presentations & Events

Phone Replay:

Dial#: 855-859-2056

Passcode: “7498014”

Available Through: Thursday, March 1, 2018

Webcast Replay: www.acadiarealty.com under Investors, Presentations & Events

About Acadia Realty Trust

Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual - Core and Fund - operating platforms and its disciplined, location-driven investment strategy. Acadia Realty Trust is accomplishing this goal by building a best-in-class core real estate portfolio with meaningful concentrations of assets in the nation’s most dynamic urban and street-retail corridors; making profitable opportunistic and value-add investments through its series of discretionary, institutional funds; and maintaining a strong balance sheet. For further information, please visit www.acadiarealty.com.

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 SEC on February 24, 2017 (“Form 10-K”) and other periodic reports filed with the SEC, including risks related to: (i) political and economic uncertainty; (ii) the Company’s reliance on revenues derived from major tenants; (iii) the Company’s limited control over joint venture investments; (iv) the Company’s partnership structure; (v) real estate and the geographic concentration of the Company’s properties; (vi) market interest rates; (vii) leverage; (viii) liability for environmental matters; (ix) the Company’s growth strategy; (x) the Company’s status as a REIT; (xi) uninsured losses; (xii) information technology security threats and (xiii) the loss of key executives. Copies of the Form 10-K and the other periodic reports Acadia files with the SEC are available on the Company’s website at www.acadiarealty.com. Any forward-looking statements in this press release speak only as of the date hereof. 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.

ACADIA REALTY TRUST AND SUBSIDIARIES

Consolidated Statements of Operations ^(a)

(dollars and Common Shares in thousands, except per share data)




	Three Months Ended December 31,						Year Ended December 31,
	2017			2016			2017			2016
Revenues
Rental income	$	50,181		$	43,328		$	198,941		$	152,814
Expense reimbursements	12,560			9,362			44,907			32,282
Other	3,340			1,431			6,414			4,843
Total revenues	66,081			54,121			250,262			189,939
Operating expenses
Depreciation and amortization	27,689			23,267			104,934			70,011
General and administrative	8,470			9,906			33,756			40,648
Real estate taxes	8,484			7,630			35,946			25,630
Property operating	14,690			8,547			41,668			24,244
Other operating	1,197			3,423			2,184			7,517
Impairment charges	10,615			—			14,455			—
Total operating expenses	71,145			52,773			232,943			168,050

Operating (loss) income	(5,064		)	1,348			17,319			21,889

Equity in earnings and gains of unconsolidated affiliates inclusive of gains on disposition of properties of $589, $36,058, $15,360 and $35,332, respectively	2,327			35,857			23,371			39,449
Interest income	5,495			6,531			29,143			25,829
Interest expense	(19,312		)	(9,728		)	(58,978		)	(34,645		)
Gain on change in control	5,571			—			5,571			—
(Loss) income from continuing operations before income taxes	(10,983		)	34,008			16,426			52,522
Income benefit (provision)	13			228			(1,004		)	105
(Loss) income from continuing operations before gain on disposition of properties	(10,970		)	34,236			15,422			52,627
Gain on disposition of properties, net of tax	35,914			—			48,886			81,965
Net income	24,944			34,236			64,308			134,592
Net income attributable to noncontrolling interests	(4,032		)	(14,415		)	(2,838		)	(61,816		)
Net income attributable to Acadia	$	20,912		$	19,821		$	61,470		$	72,776

Less: net income attributable to participating securities	(219		)	(194		)	(642		)	(793		)
Net income attributable to Common Shareholders - basic	$	20,693		$	19,627		$	60,828		$	71,983

Weighted average shares for diluted earnings per share	83,733			82,728			83,685			76,244

Net Earnings per share - basic and diluted ^(b)	$	0.25		$	0.24		$	0.73		$	0.94

ACADIA REALTY TRUST AND SUBSIDIARIES

Reconciliation of Consolidated Net Income to Funds From Operations ^{(a, c)}

(dollars and Common Shares and Units in thousands, except per share data)



	Three Months Ended December 31,						Year Ended December 31,
	2017			2016			2017			2016

Net income attributable to Acadia	$	20,912		$	19,821		$	61,470		$	72,776

Depreciation of real estate and amortization of leasing costs (net of noncontrolling interests' share)	20,580			21,666			83,515			67,446

Gain on sale (net of noncontrolling interests’ share)	(9,776		)	(8,897		)	(15,565		)	(28,154		)
Income attributable to Common OP Unit holders	1,209			1,102			3,609			4,442
Impairment charges (net of noncontrolling interests’ share)	—			—			1,088			—
Distributions - Preferred OP Units	135			143			550			560
Funds from operations attributable to Common Shareholders and Common OP Unit holders	$	33,060		$	33,835		$	134,667		$	117,070

Funds From Operations per Share - Diluted
Weighted average number of Common Shares and Common OP Units^(d)	88,990			87,748			88,998			81,252
Diluted Funds from operations, per Common Share and Common OP Unit	$	0.37		$	0.39		$	1.51		$	1.44

ACADIA REALTY TRUST AND SUBSIDIARIES

Reconciliation of Consolidated Operating Income to Net Property Operating Income (“NOI”) ^(a)

(dollars in thousands)



	Three Months Ended December 31,						Year Ended December 31,
	2017			2016			2017			2016

Consolidated operating (loss) income	$	(5,064	)	$	1,348		$	17,319		$	21,889
Add back:
General and administrative	8,470			9,906			33,756			40,648
Depreciation and amortization	27,689			23,267			104,934			70,011
Impairment charges	10,615			—			14,455			—
Less:
Above/below market rent, straight-line rent and other adjustments	(6,439		)	565			(21,110		)	(5,313		)
Consolidated NOI	35,271			35,086			149,354			127,235

Noncontrolling interest in consolidated NOI	(5,917		)	(5,278		)	(28,379		)	(20,872		)
Less: Operating Partnership's interest in Fund NOI included above	(1,382		)	(1,536		)	(7,927		)	(4,981		)
Add: Operating Partnership's share of unconsolidated joint ventures NOI ^(e)	5,124			4,721			19,539			16,547
NOI - Core Portfolio	$	33,096		$	32,993		$	132,587		$	117,929

ACADIA REALTY TRUST AND SUBSIDIARIES

Consolidated Balance Sheets^(a)

(dollars in thousands)



	As of
	December 31, 2017			December 31, 2016
ASSETS
Investments in real estate, at cost
Land	$	658,835		$	693,252
Buildings and improvements	2,538,338			2,048,508
Construction in progress	18,642			19,789
Properties under capital lease	76,965			76,965
	3,292,780			2,838,514
Less: accumulated depreciation	(339,862		)	(287,066		)
Operating real estate, net	2,952,918			2,551,448
Real estate under development	173,702			543,486
Net investments in real estate	3,126,620			3,094,934
Notes receivable, net	153,829			276,163
Investments in and advances to unconsolidated affiliates	302,070			272,028
Other assets, net	214,959			192,786
Cash and cash equivalents	74,823			71,805
Rents receivable, net	51,738			43,842
Restricted cash	10,846			22,904
Assets of properties held for sale	25,362			21,498
Total assets	$	3,960,247		$	3,995,960

LIABILITIES
Mortgage and other notes payable, net	$	909,174		$	1,055,728
Unsecured notes payable, net	473,735			432,990
Unsecured line of credit	41,500			—
Accounts payable and other liabilities	210,052			208,672
Capital lease obligation	70,611			70,129
Dividends and distributions payable	24,244			36,625
Distributions in excess of income from, and investments in, unconsolidated affiliates	15,292			13,691
Total liabilities	1,744,608			1,817,835
Commitments and contingencies
EQUITY
Acadia Shareholders' Equity
Common shares, $0.001 par value, authorized 200,000,000 and 100,000,000 shares, issued and outstanding 83,708,140 and 83,597,741 shares, respectively	84			84
Additional paid-in capital	1,596,514			1,594,926
Accumulated other comprehensive loss	2,614			(798		)
Distributions in excess of accumulated earnings	(32,013		)	(5,635		)
Total Acadia shareholders’ equity	1,567,199			1,588,577
Noncontrolling interests	648,440			589,548
Total equity	2,215,639			2,178,125
Total liabilities and equity	$	3,960,247		$	3,995,960

ACADIA REALTY TRUST AND SUBSIDIARIES

Notes to Financial Highlights:


(a)	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 SEC and included on the Company’s website at www.acadiarealty.com.

(b)

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.

(c)

The Company considers funds from operations (“FFO”) as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and net property operating income (“NOI”) to be appropriate supplemental disclosures of operating performance for an equity REIT due to their widespread acceptance and use within the REIT and analyst communities. FFO and NOI are presented to assist investors in analyzing the performance of the Company. They are helpful as they exclude various items included in net income that are not indicative of the operating performance, such as gains (losses) from sales of depreciated property, depreciation and amortization, and impairment of depreciable real estate. In addition, NOI excludes interest expense. The Company’s method of calculating FFO and NOI may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. FFO does not represent cash generated from operations as defined by generally accepted accounting principles (“GAAP”) and is not indicative of cash available to fund all cash needs, including distributions. It should not be considered as an alternative to net income for the purpose of evaluating the Company’s performance or to cash flows as a measure of liquidity. Consistent with the NAREIT definition, the Company defines FFO as net income (computed in accordance with GAAP), excluding gains (losses) from sales of depreciated property, plus depreciation and amortization, impairment of depreciable real estate, and after adjustments for unconsolidated partnerships and joint ventures.

(d)

In addition to the weighted-average Common Shares outstanding, basic and diluted FFO also assume full conversion of a weighted-average 4,717 thousand and 4,474 thousand OP Units into Common Shares for the quarters ended December 31, 2017 and 2016 and 4,741 thousand and 4,435 thousand OP Units into Common Shares for the year ended December 31, 2017 and 2016, respectively. Diluted FFO also includes: (i) the assumed conversion of Preferred OP Units into 499 thousand and 433 thousand Common Shares for the quarters ended December 31, 2017 and 2016 and 505 thousand and 435 thousand Common Shares for the year ended December 31, 2017 and 2016, respectively; and (ii) the effect of 40 thousand and 112 thousand employee share options, restricted share units and LTIP units for the quarters ended December 31, 2017 and 2016 and 69 thousand and 151 thousand for the year ended December 31, 2017 and 2016, respectively.


(e)	The Pro-rata portion share of NOI is based upon our stated ownership percentages in each operating agreement. Does not include the Operating Partnership's share of NOI from unconsolidated joint ventures within the Funds.

Exhibit

https://cdn.kscope.io/81f1235dd580ff4a827af28ab7b01af7-pagesfrom2017q4coverbonobos.jpg



Table of Contents



Section I - Fourth Quarter 2017 Earnings Press Release
Section II - Financial Information		Section III - Core Portfolio Information

Company Information	3	Core Properties	26
Market Capitalization	4	Core Top Tenants	29
Operating Statements		Core Lease Expirations	30
Consolidated Income Statements	5	Core New and Renewal Rent Spreads	31
Income Statement - Pro-rata Adjustments	7	Core Capital Expenditures	32
Consolidated Balance Sheet	8
Balance Sheet - Pro-rata Adjustments	9
Funds from Operations (“FFO”), Adjusted FFO (“AFFO”)	11
EBITDA	12
Same Property Net Operating Income	13
Fee Income	14	Section IV - Fund Information
Structured Financing	15
Other Information		Fund Overview	33
Transactional Activity	16	Fund Properties	34
2018 Guidance	18	Fund Lease Expirations	36
Net Asset Valuation Information	19	Fund Development Activity	37
Selected Financial Ratios	20
Debt Analysis
Summary	22
Detail	23
Maturities	25	Important Notes	38

Visit www.acadiarealty.com for additional investor and portfolio information

Supplemental Report – December 31, 2017



Company Information

Acadia Realty Trust is a fully-integrated equity real estate investment trust, focused on the ownership, acquisition, redevelopment and management of high-quality retail properties located in key street and urban retail corridors as well as suburban locations within high-barrier-to-entry, densely-populated metropolitan areas. Acadia owns, or has an ownership interest in, these properties through its core portfolio and through a series of opportunistic/value-add investment funds. Additional information may be found on the Company’s website at www.acadiarealty.com.





Contact Information

	Corporate Headquarters	Investor Relations	New York Stock Exchange
	411 Theodore Fremd Avenue	Amy Racanello	Symbol AKR
	Suite 300	Senior Vice President,
	Rye, NY 10580	Capital Markets & Investments
		(914) 288-3345
		aracanello@acadiarealty.com


Analyst Coverage

	Bank of America / Merrill Lynch	BTIG	KeyBanc Capital Markets, Inc.
	Craig Schmidt - (646) 855-3640	Michael Gorman - (212) 738-6138	Todd Thomas - (917) 368-2286
	craig.schmidt@baml.com	mgorman@btig.com	tthomas@keybanccm.com



	Boenning & Scattergood	Citigroup - Global Markets	J.P. Morgan Securities, Inc.
	Floris van Dijkum - (212) 922-3572	Christy McElroy - (212) 816-6981	Michael W. Mueller, CFA - (212) 622-6689
	fvandijkum@boenninginc.com	christy.mcelroy@citi.com	michael.w.mueller@jpmorgan.com



		Green Street Advisors
		Daniel Busch - (949) 640-8780
		dbusch@greenstreetadvisors.com



Supplemental Report - December 31, 2017	3



Market Capitalization
(including pro-rata share of Fund debt, in thousands)
															Weighted Average
	Total Market Capitalization ($)				%		Capitalization Based on Net Debt¹		Changes in Total Outstanding Common Shares and OP Units (in thousands)						Diluted EPS		FFO
Equity Capitalization										Common Shares	Common OP Units		Total		Quarter	YTD	Quarter	YTD
Common Shares	83,708								Balance at 12/31/2016	83,598	4,529		88,127
Common Operating Partnership ("OP") Units	4,716								Other	7	248		255
Combined Common Shares and OP Units	88,424								OP Conversions	25	(25	)	—
									Balance at 3/31/2017	83,630	4,752		88,382		83,647	83,647	89,024	89,024
Share Price at December 31, 2017	$	27.36							OP Conversions	16	(12	)	4
									Equity Issuance	—	—		—
Equity Capitalization - Common Shares and OP Units	$	2,419,281							Other	13	11		24
Preferred OP Units	13,662			²					Balance at 6/30/2017	83,659	4,751		88,410		83,662	83,654	88,973	88,998
Total Equity Capitalization	2,432,943				72	%	73	%	OP Conversions	20	(20	)	—
									Other	1	(2	)	(1	)
Debt Capitalization									Balance at 9/30/2017	83,680	4,729		88,409		83,700	83,669	89,000	88,999
Consolidated debt	1,438,386								OP Conversions	25	(13	)	12
Adjustment to reflect pro-rata share of debt	(512,434		)						Other	3	—		3
Total Debt Capitalization	925,952				28	%	27	%	Balance at 12/31/2017	83,708	4,716		88,424		83,733	83,685	88,990	88,998

Total Market Capitalization	$	3,358,895		³	100	%	100	%

__________


1.	Reflects debt net of Core Portfolio cash of $11,425 and pro-rata share of Funds cash of $19,837, for total cash netted against debt of $31,262.


2.	Represents 188 Series A and 136,593 Series C Preferred OP Units convertible into 25,067 and 474,278 Common OP Units, respectively, multiplied by the Common Share price at quarter end.


3.	Market capitalization comprises (fixed-rate debt includes notional principal fixed through interest rate swap transactions):

https://cdn.kscope.io/81f1235dd580ff4a827af28ab7b01af7-chart-0c9f730f878d5e4d891.jpg



Supplemental Report - December 31, 2017	4



Income Statements
(in thousands)

	December 31, 2017 ¹
	Quarter			Year to Date
CONSOLIDATED INCOME STATEMENT

Revenues
Rental income	$	50,181		$	198,941
Expense reimbursements	12,560			44,907
Other	3,340			6,414
Total revenues	66,081			250,262
Operating expenses
Depreciation and amortization	27,689			104,934
General and administrative	8,470			33,756
Real estate taxes	8,484			35,946
Property operating	14,690			41,668
Other operating	1,197			2,184
Impairment charges	10,615			14,455
Total operating expenses	71,145			232,943
Operating (loss) income	(5,064		)	17,319
Equity in earnings and gains of unconsolidated affiliates inclusive of gains on disposition of properties of $589 and $15,336, respectively	2,327			23,371
Interest income	5,495			29,143
Interest expense	(19,312		)	(58,978		)
Gain on change in control	5,571			5,571
(Loss) income from continuing operations before income taxes	(10,983		)	16,426
Income tax benefit (provision)	13			(1,004		)
(Loss) income from continuing operations before gain on disposition of properties	(10,970		)	15,422
Gain on disposition of properties, net of tax	35,914			48,886
Net income	24,944			64,308
Net income attributable to noncontrolling interests	(4,032		)	(2,838		)
Net income attributable to Acadia	$	20,912		$	61,470



Supplemental Report - December 31, 2017	5



Income Statements - Detail
(in thousands)

	December 31, 2017 ¹
	Quarter			Year to Date

CORE PORTFOLIO AND FUND INCOME

PROPERTY REVENUES
Minimum rents	$	44,535		$	178,465
Percentage rents	124			283
Expense reimbursements - CAM	6,189			17,813
Expense reimbursements - Taxes	6,372			27,095
Other property income	646			2,664
Total Property Revenues	57,866			226,320

PROPERTY EXPENSES
Property operating - CAM	10,984			33,175
Other property operating (Non-CAM)	3,128			7,749
Real estate taxes	8,484			35,946
Total Property Expenses	22,596			76,870

NET OPERATING INCOME - PROPERTIES	35,270			149,450

OTHER INCOME (EXPENSE)
Interest income	5,495			29,143
Straight-line rent income	2,399			10,002
Above/below-market rent	3,122			10,196
Interest expense ²	(16,601		)	(50,763		)
Amortization of finance costs	(1,990		)	(5,986		)
Above/below-market interest expense	26			482
Asset and property management expense	(597		)	(777		)
Other income/expense	2,395			2,301
Transaction costs	(1,198		)	(2,131		)
Capital lease interest	(747		)	(2,711		)
Impairment charges	(10,615		)	(14,455		)
CORE PORTFOLIO AND FUND INCOME	16,959			124,751

FEE INCOME
Asset and property management fees	264			1,150
Promote income from funds, net	—			—
Transactional fees ³	55			272
Income tax benefit (provision)	13			(1,004		)
Total Fee Income	332			418

General and Administrative	(8,470		)	(33,756		)

Depreciation and amortization	(27,567		)	(104,409		)
Non-real estate depreciation and amortization	(122		)	(524		)
Gain on change in control	5,571			5,571
Gain on disposition of properties	35,914			48,886
Income before equity in earnings and noncontrolling interests	22,617			40,937

Equity in earnings of unconsolidated affiliates	2,327			23,371
Noncontrolling interests	(4,032		)	(2,838		)

NET INCOME ATTRIBUTABLE TO ACADIA	$	20,912		$	61,470



Supplemental Report - December 31, 2017	6



Income Statements - Pro Rata Adjustments
(in thousands)
(in thousands)
	Quarter Ended December 31, 2017						Year-to-Date December 31, 2017
	Noncontrolling Interest in Consolidated Subsidiaries ⁴			Company’s Interest in Unconsolidated Subsidiaries ⁵			Noncontrolling Interest in Consolidated Subsidiaries ⁴			Company’s Interest in Unconsolidated Subsidiaries ⁵
CORE PORTFOLIO AND FUND INCOME

PROPERTY REVENUES
Minimum rents	$	(13,036	)	$	7,378		$	(51,876	)	$	29,340
Percentage rents	(58		)	21			(194		)	98
Expense reimbursements - CAM	(2,057		)	680			(4,943		)	2,893
Expense reimbursements - Taxes	(1,152		)	1,087			(3,915		)	4,932
Other property income	(298		)	6			(1,298		)	45
Total Property Revenues	(16,601		)	9,172			(62,226		)	37,308

PROPERTY EXPENSES
Property operating - CAM	(5,375		)	852			(15,431		)	3,600
Other property operating (Non-CAM)	(1,926		)	347			(4,121		)	1,237
Real estate taxes	(2,169		)	1,261			(8,818		)	5,731
Total Property Expenses	(9,470		)	2,460			(28,370		)	10,568

NET OPERATING INCOME - PROPERTIES	(7,131		)	6,712			(33,856		)	26,740

OTHER INCOME (EXPENSE)
Interest income	(1,666		)	2			(7,072		)	2
Straight-line rent income	(1,132		)	201			(4,989		)	833
Above/below-market rent	(798		)	513			(2,340		)	1,471
Interest expense	9,302			(2,015		)	23,955			(7,568		)
Amortization of finance costs	1,380			(117		)	4,028			(491		)
Above/below-market interest expense	—			21			—			83
Asset and property management expense	501			(219		)	687			(847		)
Other income/expense	(1,921		)	170			(4,383		)	3,030
Transaction costs	245			—			721			106
Capital lease interest	—			—			—			—
Impairment charges	7,631			—			10,383			—
CORE PORTFOLIO AND FUND INCOME	6,411			5,268			(12,866		)	23,359

FEE INCOME
Asset and property management fees	3,937			81			15,522			641
Promote income from funds, net	—			—			978			—
Transactional fees	2,344			50			6,565			101
Income tax provision	143			(1		)	258			(16		)
Total Fee Income	6,424			130			23,323			726

General and Administrative	437			(12		)	2,226			(139		)

Depreciation and amortization	10,635			(3,648		)	36,896			(16,059		)
Non-real estate depreciation and amortization	—			—			—			—
Gain on change in control	—			—			—			—
Gain on disposition of properties	(26,727		)	589			(48,805		)	15,484
Income before equity in earnings and noncontrolling interests	(2,820		)	2,327			774			23,371

Equity in earnings of unconsolidated affiliates	—			—			—			—
Noncontrolling interests ⁶	(1,212		)	—			(3,612		)	—

NET INCOME ATTRIBUTABLE TO ACADIA	$	(4,032	)	$	2,327		$	(2,838	)	$	23,371



Supplemental Report - December 31, 2017	7



Consolidated Balance Sheet ⁷
(in thousands)
	Consolidated
	Balance
	Sheet
ASSETS	As Reported			Line Item Details:
Real estate
Land	$	658,835
Buildings and improvements	2,538,338
Construction in progress	18,642
Properties under capital lease	76,965			The components of Real estate under development, at cost are as follows:
	3,292,780
Less: accumulated depreciation	(339,862		)
Operating real estate, net	2,952,918			Fund II	$	4,908
Real estate under development	173,702			Fund III	63,939
Net investments in real estate	3,126,620			Fund IV	82,958
Notes receivable, net	153,829			Core	21,897
Investments in and advances to unconsolidated affiliates	302,070
Other assets, net	214,959			Total	$	173,702
Cash and cash equivalents	74,823
Straight-line rents receivable, net	34,220
Rents receivable, net	17,518
Restricted cash	10,846			Summary of other assets, net:
Assets of properties held for sale	25,362
				Lease intangibles, net	$	127,571
				Deferred charges, net	24,589
Total Assets	$	3,960,247		Prepaid expenses	16,838
				Other receivables	11,356
LIABILITIES AND SHAREHOLDERS' EQUITY				Accrued interest receivable	11,668
				Deposits	6,296
Mortgage and other notes payable, net	$	909,174		Due from seller	4,300
Unsecured notes payable, net	473,735			Deferred tax assets	2,096
Unsecured line of credit	41,500			Derivative financial instruments	4,402
Accounts payable and other liabilities	210,052			Due from related parties	1,479
Capital lease obligation	70,611			Corporate assets	2,369
Dividends and distributions payable	24,244			Income taxes receivable	1,995
Distributions in excess of income from, and investments in, unconsolidated affiliates	15,292			Total	$	214,959

Total Liabilities	1,744,608
Shareholders' equity				Summary of accounts payable and other liabilities:
Common shares	84
Additional paid-in capital	1,596,514			Lease intangibles, net	$	104,478
Accumulated other comprehensive loss	2,614			Accounts payable and accrued expenses	61,420
Distributions in excess of accumulated earnings	(32,013		)	Deferred income	31,306
Total controlling interest	1,567,199			Tenant security deposits, escrow and other	10,029
Noncontrolling interests	648,440			Derivative financial instruments	1,467
Total Shareholders' Equity	2,215,639			Income taxes payable	176
				Other	1,176
Total Liabilities and Shareholders' Equity	$	3,960,247		Total	$	210,052



Supplemental Report - December 31, 2017	8



Pro-Rata Balance Sheet Adjustments ⁷
(in thousands)

	Noncontrolling Interest in Consolidated Subsidiaries ⁴			Company’s Interest in Unconsolidated Subsidiaries ⁵
ASSETS
Real estate
Land	$	(151,762	)	$	81,188
Buildings and improvements	(806,924		)	334,308
Construction in progress	(11,301		)	297
Properties under capital lease	—			—
	(969,987		)	415,793
Less: accumulated depreciation	37,431			(51,355		)
Operating real estate, net	(932,556		)	364,438
Real estate under development	(113,918		)	5,668
Net investments in real estate	(1,046,474		)	370,106
Notes receivable, net	(39,013		)	—
Investments in and advances to unconsolidated affiliates	(65,100		)	(235,666		)
Other assets, net	(16,714		)	30,924
Cash and cash equivalents	(50,562		)	7,001
Straight-line rents receivable, net	(8,909		)	4,727
Rents receivable, net	(2,419		)	2,697
Restricted cash	(8,167		)	1,205
Assets of properties held for sale	(18,034		)	—


Total Assets	$	(1,255,392	)	$	180,994

LIABILITIES AND SHAREHOLDERS' EQUITY

Mortgage and other notes payable, net	$	(530,100	)	$	162,427
Unsecured notes payable, net	(136,499		)	—
Unsecured line of credit	—			—
Accounts payable and other liabilities	(69,003		)	33,859
Capital lease obligation	—			—
Dividends and distributions payable	—			—
Distributions in excess of income from, and investments in, unconsolidated affiliates	—			(15,292		)

Total Liabilities	(735,602		)	180,994
Shareholders' equity
Common shares	—			—
Additional paid-in capital	—			—
Accumulated other comprehensive loss	—			—
Distributions in excess of accumulated earnings	—			—
Total controlling interest	—			—
Noncontrolling interests	(519,790		)	—
Total Shareholders' Equity	(519,790		)	—

Total Liabilities and Shareholders' Equity	$	(1,255,392	)	$	180,994



Supplemental Report - December 31, 2017	9

__________

Notes to income statements, balance sheet and pro rata adjustments:


1.	Quarterly and year-to-date results are unaudited, although they reflect all adjustments, which in the opinion of management are necessary for a fair presentation of operating results for the interim periods.


2.	Net of capitalized interest of $1.2 million and $13.4 million for the quarterly and year-to-date periods, respectively.


3.	Consists of development, construction, leasing and legal fees.


4.	Noncontrolling interests represent limited partners’ interests in consolidated partnerships’ activities.


5.	Represents the Company’s share of co-investment partnerships’ activities, of which each are included on a single line presentation in the Company’s consolidated financial statements in accordance with GAAP.


6.	Adjustment to noncontrolling interests exclude income allocable to Operating Partnership Units of $1.3 million and $4.2 million for the quarter and year-to-date period, respectively, ended December 31, 2017.


7.	The Company currently invests in Funds II, III, IV & V and Mervyns I & II which are consolidated within the Company's financial statements.



Supplemental Report - December 31, 2017	10



Funds from Operations ("FFO") ¹
(in thousands)

	Quarter Ended			Quarter Ended			Quarter Ended			Quarter Ended			Year to Date
Funds from operations ("FFO"):	March 31, 2017			June 30, 2017			September 30, 2017			December 31, 2017			December 31, 2017

Net Income	$	15,631		$	12,060		$	12,867		$	20,912		$	61,470
Add back:
Depreciation of real estate and amortization of leasing costs (net of noncontrolling interest share)	21,533			21,093			20,309			20,580			83,515
Impairment charges - depreciable real estate	—			—			1,088			—			1,088
Gain on disposition of properties (net of noncontrolling interest share)	(2,742		)	(753		)	(2,294		)	(9,776		)	(15,565		)
Income attributable to noncontrolling interests' share in Operating Partnership	1,062			857			896			1,344			4,159
FFO to Common Shareholders and Common OP Unit holders	$	35,484		$	33,257		$	32,866		$	33,060		$	134,667

Add back: transaction costs	36			222			93			953			1,304
Less: gain on change in control	—			—			—			(5,571		)	(5,571		)
Add back: impairment charges - nondepreciable real estate	—			—			—			2,984			2,984
FFO before Special Items	$	35,520		$	33,479		$	32,959		$	31,426		$	133,384

Adjusted Funds from operations ("AFFO"):
Diluted FFO	$	35,484		$	33,257		$	32,866		$	33,060		$	134,667
Straight-line rent, net	(1,824		)	(1,251		)	(1,303		)	(1,468		)	(5,846		)
Above/(below)-market rent	(2,197		)	(2,125		)	(2,168		)	(2,837		)	(9,327		)
Amortization of finance costs	574			545			603			727			2,449
Above/below-market interest	(199		)	(182		)	(137		)	(47		)	(565		)
Non-real estate depreciation	231			40			131			122			524
Leasing commissions	(474		)	(202		)	(189		)	(549		)	(1,414		)
Tenant improvements	(1,747		)	(1,622		)	(1,036		)	(1,836		)	(6,241		)
Capital expenditures	(47		)	(59		)	(1,306		)	(1,230		)	(2,642		)
AFFO to Common Shareholders and Common OP Unit holders	$	29,801		$	28,401		$	27,461		$	25,942		$	111,605

Total weighted average diluted shares and OP Units	89,024			88,973			89,000			88,990			88,998

Diluted FFO per Common share and OP Unit:
FFO	$	0.40		$	0.37		$	0.37		$	0.37		$	1.51
FFO before special items	$	0.40		$	0.38		$	0.37		$	0.35		$	1.50

__________


1.	Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management are necessary for a fair presentation of operating results for the interim periods.



Supplemental Report - December 31, 2017	11



EBITDA
(in thousands)

	Quarter Ended December 31, 2017									Year to Date December 31, 2017
	Core									Core
	Portfolio			Funds			Total			Portfolio			Funds			Total

NET INCOME ATTRIBUTABLE TO ACADIA	$	17,025		$	3,887		$	20,912		$	54,322		$	7,148		$	61,470

Adjustments:
Depreciation and amortization	17,599			3,103			20,702			72,910			11,186			84,096
Impairment charges	—			2,984			2,984			—			4,072			4,072
Interest expense	6,838			2,476			9,314			27,775			6,601			34,376
Amortization of finance costs	293			434			727			1,213			1,236			2,449
Above/below-market interest	(47		)	—			(47		)	(565		)	—			(565		)
Gain on change in control	(5,571		)	—			(5,571		)	(5,571		)	—			(5,571		)
Gain on disposition of properties	—			(9,776		)	(9,776		)	—			(15,565		)	(15,565		)
Transaction costs	890			63			953			1,113			191			1,304
Provision for income taxes	(201		)	46			(155		)	679			83			762
Noncontrolling interest - OP	1,212			—			1,212			3,612			—			3,612

EBITDA	$	38,038		$	3,217		$	41,255		$	155,488		$	14,952		$	170,440



Supplemental Report - December 31, 2017	12



Core Portfolio
Same Property Performance ¹
(in thousands)

	Quarter Ended								Year to Date
							Change						Change
	December 31, 2017			December 31, 2016			Favorable/(Unfavorable)		December 31, 2017		December 31, 2016		Favorable/(Unfavorable)

Summary
Minimum rents	$	27,681		$	27,940		(0.9	)%	$	106,607	$	105,893	0.7	%
Expense reimbursements	7,804			7,420			5.2	%	30,577		26,507		15.4	%
Other property income	145			226			(35.8	)%	406		686		(40.8	)%

Total Revenue	35,630			35,586			0.1	%	137,590		133,086		3.4	%

Expenses
Property operating - CAM & Real estate taxes	8,869			8,626			(2.8	)%	34,598		30,943		(11.8	)%
Other property operating (Non-CAM)	654			411			(59.1	)%	2,183		1,386		(57.5	)%

Total Expenses	9,523			9,037			(5.4	)%	36,781		32,329		(13.8	)%

Same Property NOI - Core properties	$	26,107		$	26,549		(1.7	)%	$	100,809	$	100,757	0.1	%

Reconciliation of Same Property NOI to Core NOI
NOI of Properties excluded from Same Property NOI	6,989			6,444					31,778		17,172
Core NOI	$	33,096		$	32,993				$	132,587	$	117,929

Other same property information
Physical Occupancy	94.9		%	96.7		%
Leased Occupancy	95.7		%	96.9		%

__________


1.	The above amounts include the pro-rata activity related to the Company's Core consolidated and unconsolidated investments.



Supplemental Report - December 31, 2017	13



Fee Income by Fund
(in thousands)

	Fund II		Fund III		Fund IV		Fund V	Other		Total
Year to Date December 31, 2017
Asset and property management fees	$	2,235	$	2,714	$	5,356	6,510	$	498	$	17,313
Transactional fees	2,132		1,325		2,483		798	200		6,938
Total fees	$	4,367	$	4,039	$	7,839	7,308	$	698	$	24,251


Quarter Ended December 31, 2017
Asset and property management fees and priority distributions	$	541	$	643	$	1,328	1,661	$	109	$	4,282
Transactional fees	556		399		1,118		314	62		2,449
Total fees and priority distributions	$	1,097	$	1,042	$	2,446	1,975	$	171	$	6,731


Quarter Ended September 30, 2017
Asset and property management fees and priority distributions	$	575	$	665	$	1,351	1,609	$	124	$	4,324
Transactional fees	394		407		566		174	58		1,599
Total management fees and priority distributions	$	969	$	1,072	$	1,917	1,783	$	182	$	5,923


Quarter Ended June 30, 2017
Asset and property management fees	$	568	$	678	$	1,337	1,558	$	131	$	4,272
Transactional fees	914		149		435		276	32		1,806
Total fees	$	1,482	$	827	$	1,772	1,834	$	163	$	6,078


Quarter Ended March 31, 2017
Asset and property management fees	$	551	$	728	$	1,340	1,682	$	134	$	4,435
Transactional fees	268		370		364		34	48		1,084
Total fees	$	819	$	1,098	$	1,704	1,716	$	182	$	5,519



Supplemental Report - December 31, 2017	14



Structured Financing Portfolio
(in thousands)


	September 30, 2017						Current Period											Stated		Effective
	Principal		Accrued						Repayments /			Current		Accrued		Balance at		Interest		Interest		Maturity
Investment	Balance		Interest		Total		Advances		Conversions			Principal ²		Interest		December 31, 2017		Rate		Rate¹		Dates


First mortgage notes ³	$	178,395	$	4,886	$	183,281	$	—	$	(76,700	)	$	101,695	$	4,886	$	106,581	7.79	%	7.88	%	Jun-18 to Apr-19

Mezzanine, preferred equity and other notes	20,000		67		20,067		—		(20,000		)	—		—		—

Total Core notes receivable	$	198,395	$	4,953	$	203,348	$	—	$	(96,700	)	$	101,695	$	4,886	$	106,581	7.79	%	7.88	%

__________
1. Inclusive of points and exit fees.

2. Reconciliation of Notes Receivable to the Consolidated Balance Sheet (Pro Rata):

Total Notes Receivable per above												$	101,695
Pro-rata share of Fund loans												13,121

Total Pro-rata Notes Receivable												$	114,816

3. In January, 2018, the Company received full settlement of one of its Core notes receivable with a principal amount of $26.0 million



Supplemental Report - December 31, 2017	15



Transactional Activity
(in thousands)

PROPERTY ACQUISTIONS AND DISPOSITIONS

Property Name	Location	Key Tenants	Date of Transaction	Transaction Amount		Ownership %		Fund Share		Acadia Share

ACQUISITIONS
Core:
907 King Street	Alexandria, VA	—	January 4, 2017	$	3,000	20.00	%	$	—	$	600

Fund IV:
Lincoln Place Shopping Center	Fairview Heights, IL	Kohl's, Marshalls	March 13, 2017	35,400		100.00	%	35,400		8,184

Fund V:
Plaza Santa Fe	Santa Fe, NM	TJ Maxx, Ross Dress for Less	June 5, 2017	35,220		100.00	%	35,220		7,079
Hickory Ridge	Hickory, NC	Kohl's, Best Buy, Dick's	July 27, 2017	44,020		100.00	%	44,020		8,848
New Towne Plaza	Canton Township, MI	Kohl's, Jo-Ann Fabrics	August 4, 2017	26,000		100.00	%	26,000		5,226
Fairlane Green	Allen Park, MI	TJ Maxx, Michaels	December 20, 2017	62,000		100.00	%	62,000		12,462
				167,240				167,240		33,615

				$	205,640			$	202,640	$	42,399

DISPOSITIONS
Fund II:
216th Street	New York, NY	City of New York	September 11, 2017	$	30,579	99.10	%	$	30,304	$	8,585
City Point Condominium Tower I	New York, NY	—	October 13, 2017	96,000		94.15	%	90,384		25,606
161st Street	New York, NY	NY City & State Agencies	December 13, 2017	105,684		99.10	%	104,733		29,671
				232,263				225,421		63,862

Fund III:
Arundel Plaza	Glen Burnie, MD	Giant Foods, Lowes	February 15, 2017	28,800		90.00	%	25,920		6,361
New Hyde Park Shopping Center	New Hyde Park, NY	Petsmart	July 6, 2017	22,100		100.00	%	22,100		5,423
				50,900				48,020		11,784
Fund IV:
2819 Kennedy Boulevard	North Bergen, NJ	Aldi	January 31, 2017	19,000		90.00	%	17,100		3,954
1701 Belmont Avenue	Catonsville, MD	—	June 30, 2017	5,600		90.00	%	5,040		1,165
Broughton Street Portfolio (4 properties)	Savannah, GA	—	October 3, 2017	9,500		50.00	%	4,750		1,098
Broughton Street Portfolio (1 property)	Savannah, GA	—	December 21, 2017	1,500		50.00	%	750		173
1151 Third Avenue	New York, NY	Vineyard Vines	November 16, 2017	27,000		100.00	%	27,000		6,242
				62,600				54,640		12,632

				$	345,763			$	328,081	$	88,278



Supplemental Report - December 31, 2017	16



Transactional Activity
(in thousands)


STRUCTURED FINANCING ACTIVITY

Note Description	Transaction Type	Date of Transaction	Transaction Amount			Ownership %		Fund Share			Acadia Share

Core:
Market Square	Conversion	May 1 and Nov 16, 2017	$	(32,010	)	100.00	%	$	—		$	(32,010	)
182-186 Spring Street	Redemption	June 9, 2017	(12,000		)	100.00	%	—			(12,000		)
Gotham	Additional Funding	June 30, 2017	10,000			100.00	%	—			10,000
Town Center	Conversion	November 16, 2017	(60,695		)	100.00	%	—			(60,695		)
Gotham	Redemption	November 17, 2017	(20,000		)	100.00	%	—			(20,000		)
			(114,705		)			—			(114,705		)
Fund IV:
Shaws Windham	Conversion	June 30, 2017	(9,000		)	100.00	%	(9,000		)	(2,081		)

			$	(123,705	)			$	(9,000	)	$	(116,786	)



Supplemental Report - December 31, 2017	17



2018 Guidance

	2018 Guidance Forecast
	Low					High					2017 Actual ⁽⁶⁾
(dollars in millions, except per share amounts)	$ Millions			$/Share		$ Millions			$/Share		$ Millions			$/Share
Property NOI:
Core	$	132.8				$	133.4				$	131.7
Fund	12.3					12.8					10.3
Straight-line and above/below market rents	11.3					12.2					15.2
Interest income (Structured Finance Portfolio)	8.9					8.9					22.0
Fund fee income, net of taxes	20.9					23.2					23.4
Interest expense, net of capitalized interest ⁽¹⁾	(39.6		)			(38.7		)			(38.5		)
General and administrative	(31.5		)			(32.0		)			(31.7		)
Non-real estate depreciation and other expenses	(0.6		)			(0.6		)			(0.7		)
FFO, prior to transactional activity	$	114.5		$	1.29	$	119.2		$	1.34	$	131.7		$	1.48

Core acquisitions, Structured Financing investments and share repurchases ⁽²⁾				—					0.03		—			—
Fund acquisitions, and related fees ⁽³⁾				0.01					0.02		—			—
Net Promote and other transactional income ⁽⁴⁾				0.03					0.06		1.7			0.02
2018 FFO Per Share Guidance Range ⁽⁵⁾				$	1.33				$	1.45	$	133.4		$	1.50

__________


1.	Inclusive of interest expense, amortization of finance costs, above and below market interest and capital lease interest.


2.	Core, Structured Financing investments and potential stock repurchases are $0 to $275 million in our low and high range, respectively.


3.	Gross Fund acquisitions are $200 million to $700 million in our low and high range, respectively.


4.	Represents net promote income from Fund III in the second half of 2018, in addition to other potential transactional activity.


5.	2018 FFO guidance and comparable 2017 results are before acquisition and gains/losses on sale or impairment of depreciated and non-operating properties.


6.	Before 2017 special items (gain on change in control, partially offset by impairment and acquisition costs), which aggregated $0.01 per share, or $1.3 million.



Supplemental Report - December 31, 2017	18



Net Asset Valuation Information
(in thousands)

	CORE				FUND III											FUND IV											FUND V
					Fund Level						AKR Pro-rata share					Fund Level						AKR Pro-rata share					Fund Level				AKR Pro-rata share
	Quarterly		Annualized (x4)		Quarterly			Annualized (x4)			%		$			Quarterly			Annualized (x4)			%		$			Quarterly		Annualized (x4)		%		$
Current NOI
Net Operating Income ¹	$	33,096	$	132,384	$	589		$	2,356		24.5	%	$	578		$	7,023		$	28,092		23.1	%	$	6,495		$	194	$	2,661	20.1	%	$	535
Less:
(Income) loss from properties sold or under contract	—		—		4			16					4			7			28					6			—		—				—
(Income) loss from pre-stabilized assets ²	—		—		(640		)	(2,560		)			(628		)	(2,372		)	(9,488		)			(2,194		)	—		—				—
(Income) loss from development projects ³	—		—		15			60					15			(436		)	(1,744		)			(403		)	—		—				—
Net Operating Income of stabilized assets	$	33,096	$	132,384	$	(32	)	$	(128	)			$	(31	)	$	4,222		$	16,888				$	3,904		$	194	$	2,661			$	535

Assets under contract for sale, net of debt								$	—				$	—					$	—				$	—				$	—			$	—

Costs to Date
Pre-stabilized assets ²			$	—				$	55,369				$	13,588					$	274,560				$	63,478				$	—			$	—
Development projects ³			24,600					56,900					13,963						142,200					32,877					—				—

Total Costs to Date			$	24,600				$	112,269				$	27,551					$	416,760				$	96,355				$	—			$	—

Debt			$	716,691				$	65,866				$	11,469					$	460,335				$	102,393				$	131,913			$	26,514

__________


1.	Does not include a full quarter of NOI for those assets purchased during the current quarter. See “Transactional Activity” page in this Supplemental Report for descriptions of those acquisitions. Excludes Fund II, which has been substantially liquidated except for its investment in City Point with pre-stabilized assets of $528.8 million and debt of $256.3 million.


2.	Consists of the following projects for Fund III: 640 Broadway, 654 Broadway and Nostrand; Fund IV: Paramus Plaza, 210 Bowery, Broughton Street Portfolio, 801 Madison, 27 E 61st Street, 938 West North, 1964 Union Street, 17 East 71st Street, 1035 Third Avenue and Eden Square.


3.	See “Development Activity” page in this Supplemental Report.



Supplemental Report - December 31, 2017	19



Selected Financial Ratios
(in thousands)

	Quarter Ended						Year to Date							Quarter Ended
	December 31,						December 31,							December 31, 2017			September 30, 2017
	2017			2016			2017			2016				December 31, 2017			September 30, 2017
COVERAGE RATIOS ¹													LEVERAGE RATIOS

Fixed-Charge Coverage Ratios													Debt/Market Capitalization Ratios

EBITDA ² divided by:	$	38,038		$	39,572		$	155,488		$	144,292		Debt + Preferred Equity (Preferred O.P. Units)	$	939,614		$	1,013,579
Interest expense	6,838			6,592			27,775			24,619			Total Market Capitalization	3,358,895			3,543,845
Principal Amortization	1,169			1,281			4,774			4,407			Debt+Preferred Equity/Total Market Capitalization	28		%	29		%
Preferred Dividends ³	135			143			550			560
Fixed-Charge Coverage Ratio - Core Portfolio	4.7		x	4.9		x	4.7		x	4.9		x

EBITDA divided by:	$	41,255		$	42,160		$	170,440		$	153,766		Debt ⁶	$	908,352		$	986,299
Interest expense	9,314			7,217			34,376			26,901			Total Market Capitalization	3,358,895			3,543,845
Principal Amortization	1,473			1,284			5,638			4,983			Net Debt+Preferred Equity/Total Market Capitalization	27		%	28		%
Preferred Dividends	135			143			550			560
Fixed-Charge Coverage Ratio - Core Portfolio and Funds	3.8		x	4.9		x	4.2		x	4.7		x

Payout Ratios													Debt/EBITDA Ratios

Dividends declared (per share/OP Unit) ⁷	$	0.27		$	0.26		$	1.05		$	1.01		Debt	$	716,691		$	741,073
													EBITDA	155,488			150,370
Dividends (Shares) & Distributions (OP Units) declared	$	24,249		$	23,229		$	94,306		$	84,404		Debt/EBITDA - Core Portfolio	4.6		x	4.9		x
FFO	33,060			33,835			134,667			117,070
FFO Payout Ratio	73		%	69		%	70		%	72		%	Debt ⁵	$	705,266		$	724,799
FFO Payout Ratio before Special Items	77		%	67		%	71		%	67		%	EBITDA	155,488			150,370
													Net Debt/EBITDA - Core Portfolio	4.5		x	4.8		x
Dividends (Shares) & Distributions (OP Units) declared	$	24,249		$	23,229		$	94,306		$	84,404
AFFO	25,942			29,000			111,605			95,596			Debt ⁴	$	925,952		$	998,915
AFFO Payout Ratio	93		%	80		%	84		%	88		%	EBITDA	170,440			169,626
													Debt/EBITDA - Core Portfolio and Funds	5.4		x	5.9		x

													Debt ⁶	$	894,690		$	971,635
													EBITDA	170,440			169,626
													Net Debt/EBITDA - Core Portfolio and Funds	5.2		x	5.7		x



Supplemental Report - December 31, 2017	20

__________

Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The coverage ratios include the Company's pro-rata share of FFO, AFFO, EBITDA, interest expense and principal amortization related to both the Company's consolidated and unconsolidated investments in joint ventures.


2.	See EBITDA page in this Supplemental Report for a reconciliation of EBITDA to Net Income attributable to Acadia.


3.	Represents preferred distributions on Preferred Operating partnership Units.


4.	Includes the Company's pro-rata share of consolidated and unconsolidated joint venture debt.


5.	Reflects debt net of the current Core Portfolio cash balance at end of period.


6.	Reflects debt net of the current Core Portfolio and pro-rata share of the Funds cash balance at end of period.


7.	Does not include special dividends of $0.15 for 4Q and YTD 2016.



Supplemental Report - December 31, 2017	21



Portfolio Debt - Summary
(in thousands)


	Acadia Pro-Rata Share of Debt ²														Reconciliation to Consolidated Debt as Reported
	Core Portfolio				Funds				Total						Add: Noncontrolling Interest Share of Debt ³		Less: Pro-rata Share of Unconsolidated Debt ⁴			Acadia Consolidated Debt as Reported
Unsecured Debt	Principal Balance		Interest Rate		Principal Balance		Interest Rate		Principal Balance		Interest Rate


Fixed-Rate Debt ¹	$	323,452	3.1	%	$	—	n/a		$	323,452	3.1	%	35	%	$	—	$	—		$	323,452
Variable-Rate Debt ⁵	18,048		2.9	%	39,126		3.3	%	57,174		3.1	%	6	%	136,499		—			193,673
													41	%
Mortgage and Other Notes Payable

Fixed-Rate Debt ¹	333,172		4.2	%	82,227		4.3	%	415,399		4.2	%	45	%	267,269		(116,486		)	566,182
Variable-Rate Debt ⁵	42,019		3.0	%	87,908		4.1	%	129,927		3.8	%	14	%	272,039		(46,887		)	355,079
													59	%

Total	$	716,691	3.6	%	$	209,261	4.0	%	$	925,952	3.7	%	100	%	$	675,807	$	(163,373	)	1,438,386
Unamortized premium																				856
Unamortized loan costs																				(14,833		)
Total																				$	1,424,409

_________


1.	Fixed-rate debt includes notional principal fixed through swap transactions.


2.	Represents the Company's pro-rata share of debt based on its percent ownership.


3.	Represents the noncontrolling interest pro-rata share of consolidated partnership debt based on its percent ownership.


4.	Represents the Company's pro-rata share of unconsolidated partnership debt based on its percent ownership.


5.	Variable rate debt includes certain borrowings that are subject to interest rate cap agreements.



Supplemental Report - December 31, 2017	22



Portfolio Debt - Detail
(in thousands)
		Principal Balance at			Acadia's Pro-rata Share					Interest	Maturity	Extension
Property		December 31, 2017			Percent		Amount			Rate	Date	Options

CORE PORTFOLIO

Fixed-Rate Debt
Brandywine ²		$	26,250		22.22	%	$	5,833		6.00%	7/1/2016	None
163 Highland Avenue		9,112			100.00	%	9,112			4.66%	2/1/2024	None
Crossroads Shopping Center		67,403			49.00	%	33,027			3.94%	10/6/2024	None
555 9th Street		60,000			100.00	%	60,000			3.99%	1/1/2025	None
840 N. Michigan		73,500			88.43	%	64,996			4.36%	2/10/2025	None
Georgetown Portfolio (2008 Investment)		16,888			50.00	%	8,444			4.72%	12/10/2027	None
State & Washington		24,974			100.00	%	24,974			4.40%	9/5/2028	None
239 Greenwich Avenue		27,000			75.00	%	20,250			3.88%	1/10/2029	None
North & Kingsbury		12,931			100.00	%	12,931			4.01%	11/5/2029	None
151 North State Street		14,179			100.00	%	14,179			4.03%	12/1/2029	None
Concord & Milwaukee		2,802			100.00	%	2,802			4.40%	6/1/2030	None
California & Armitage		2,622			100.00	%	2,622			5.89%	4/15/2035	None
Unsecured interest rate swaps ¹		323,452			100.00	%	323,452			3.08%	Various
Secured interest rate swaps ¹		74,152			99.80	%	74,002			3.96%	Various

Sub-Total Fixed-Rate Debt		735,265					656,624			3.63%

Secured Variable-Rate Debt
664 N. Michigan		40,584			100.00	%	40,584			LIBOR+165	6/28/2018	1 x 60 mos.
28 Jericho Turnpike		14,402			100.00	%	14,402			LIBOR+190	1/23/2023	None
60 Orange Street		7,522			98.00	%	7,372			LIBOR+175	4/3/2023	None
Gotham Plaza		20,447			49.00	%	10,019			LIBOR+160	6/10/2023	None
Georgetown Portfolio (2016 Investment)		160,000			20.00	%	32,000			LIBOR+170	8/1/2023	None
330-340 River Street		11,644			100.00	%	11,644			LIBOR+170	6/1/2026	None
Secured interest rate swaps ¹		(74,152		)	99.80	%	(74,002		)	LIBOR+259

Unsecured Variable-Rate Debt
Unsecured Line of Credit ³		41,500			100.00	%	41,500			LIBOR+140	6/27/2020	2 x 6 mos.
Unsecured Term Loan		50,000			100.00	%	50,000			LIBOR+130	7/2/2020	None
Unsecured Term Loan		50,000			100.00	%	50,000			LIBOR+130	1/4/2021	None
Unsecured Term Loan		150,000			100.00	%	150,000			LIBOR+130	6/27/2021	None
Unsecured Term Loan		50,000			100.00	%	50,000			LIBOR+160	12/18/2022	None
Unsecured interest rate swaps ¹		(323,452		)	100.00	%	(323,452		)	LIBOR+171

Sub-Total Variable-Rate Debt		198,495					60,067			LIBOR+163

Total Debt - Core Portfolio		$	933,760				$	716,691		3.58%

Funds
Fixed-Rate Debt
CityPoint ^4,5	Fund II	$	5,262		26.67	%	$	1,403		1.00%	8/23/2019	None
CityPoint ⁴	Fund II	200,000			26.67	%	53,341			4.75%	5/29/2020	None
1964 Union Street ⁴	Fund IV	1,463			20.80	%	304			3.80%	10/1/2025	None
2207 Fillmore Street ⁴	Fund IV	1,120			20.80	%	233			4.50%	10/31/2025	None
2208-2216 Fillmore Street ⁴	Fund IV	5,606			20.80	%	1,166			3.40%	6/1/2026	None
1861 Union Street ⁴	Fund IV	2,315			20.80	%	482			3.40%	6/1/2026	None
Interest rate swaps ¹	Funds II & IV	106,413			23.77	%	25,298			3.48%	Various
Sub-Total Fixed-Rate Debt		322,179					82,227			4.26%



Supplemental Report - December 31, 2017	23



Portfolio Debt - Detail
(in thousands)
		Principal Balance at			Acadia's Pro-rata Share					Interest	Maturity	Extension
Property		December 31, 2017			Percent		Amount			Rate	Date	Options
Variable-Rate Debt
210 Bowery	Fund IV	10,918			23.12	%	2,524			LIBOR+275	1/15/2018	2 x 3 mos.
Promenade at Manassas ⁴	Fund IV	24,954			22.78	%	5,686			LIBOR+170	11/19/2018	None
Acadia Strategic Opportunity IV LLC	Fund IV	—			23.12	%	—			LIBOR+165	12/31/2018	None
230/240 W. Broughton	Fund IV	10,210			11.56	%	1,180			LIBOR+300	5/1/2018	None
Nostrand Avenue	Fund III	10,617			24.54	%	2,605			LIBOR+265	5/1/2018	2 x 12 mos.
Paramus Plaza ⁴	Fund IV	18,452			11.56	%	2,133			LIBOR+170	2/20/2019	None
Lake Montclair	Fund IV	14,097			23.12	%	3,259			LIBOR+215	5/1/2019	None
146 Geary Street	Fund IV	27,700			23.12	%	6,404			LIBOR+340	7/14/2019	2 x 12 mos.
938 W. North Avenue	Fund IV	14,100			23.12	%	3,260			LIBOR+265	9/1/2019	1 x 12 mos.
Acadia Strategic Opportunity IV LLC	Fund IV	40,825			23.12	%	9,439			LIBOR+275	10/31/2019	None
Broughton Street Portfolio	Fund IV	24,699			23.12	%	5,710			LIBOR+300	11/8/2019	1 x 12 mos.
717 N. Michigan Avenue	Fund IV	63,900			23.12	%	14,774			LIBOR+395	12/9/2019	2 x 12 mos.
640 Broadway ⁴	Fund III	49,470			15.49	%	7,663			LIBOR+465	1/9/2020	2 x 12 mos.
Wake Forest Crossing	Fund IV	24,000			23.12	%	5,549			LIBOR+160	2/14/2020	2 x 12 mos.
Lincoln Place	Fund IV	23,100			23.12	%	5,341			LIBOR+185	3/13/2020	None
650 Bald Hill Road	Fund IV	13,909			20.81	%	2,894			LIBOR+265	4/27/2020	None
Acadia Strategic Opportunity Fund V, LLC	Fund V	103,300			20.10	%	20,763			LIBOR+160	5/4/2020	None
Eden Square ⁴	Fund IV	22,500			22.78	%	5,127			LIBOR+215	6/1/2020	1 x 12 mos.
17 E. 71st Street	Fund IV	19,000			23.12	%	4,393			LIBOR+190	6/9/2020	None
Cortlandt Crossing	Fund III	1,360			24.54	%	334			LIBOR+300	6/19/2020	None
Acadia Strategic Opportunity Fund II, LLC	Fund II	31,500			28.33	%	8,924			LIBOR+165	9/20/2020	2 x 12 mos.
Hickory Ridge	Fund V	28,613			20.10	%	5,751			LIBOR+225	10/5/2020	None
1035 Third Avenue	Fund IV	41,387			23.12	%	9,569			LIBOR+235	1/27/2021	None
Restaurants at Fort Point	Fund IV	6,425			23.12	%	1,485			LIBOR+235	8/25/2021	None
3104 M Street ^4,6	Fund III	4,419			19.63	%	867			Prime+50	12/10/2021	None
Airport Mall	Fund IV	5,612			23.12	%	1,297			LIBOR+200	4/1/2022	None
Colonie Plaza	Fund IV	11,889			23.12	%	2,749			LIBOR+225	4/1/2022	None
Dauphin Plaza	Fund IV	10,271			23.12	%	2,375			LIBOR+200	4/1/2022	None
JFK Plaza	Fund IV	4,491			23.12	%	1,038			LIBOR+200	4/1/2022	None
Shaw's Plaza	Fund IV	8,035			23.12	%	1,858			LIBOR+200	4/1/2022	None
Wells Plaza	Fund IV	3,368			23.12	%	779			LIBOR+200	4/1/2022	None
Shaw's Plaza (Windham)	Fund IV	5,989			23.12	%	1,385			LIBOR+200	12/1/2022	None
CityPoint ⁴	Fund II	19,561			26.67	%	5,217			LIBOR+139	10/1/2030	None
Interest rate swaps ¹	Funds II & IV	(106,413		)	23.77	%	(25,298		)	LIBOR+211
Sub-Total Variable-Rate Debt		592,258					127,034			LIBOR+252
Total Debt - Funds		$	914,437				$	209,261		4.04%
Total Debt - Core Portfolio and Funds		$	1,848,197				$	925,952		3.68%

__________


1.	The Company has hedged a portion of its variable-rate debt with variable to fixed-rate swap agreements.


2.	This loan is in default as of December 31, 2017 and is accruing interest for accounting purposes at the default rate of 11%.


3.	This is an unsecured revolving facility which has a current capacity up to $150,000 and can be increased to $300,000. The interest rate will vary based on levels of leverage. As of December 31, 2017, the interest rate is LIBOR + 140 basis points.


4.	Acadia's interest in this Fund debt is also reflected net of other JV interests at the investment level.


5.	This loan was made in connection with the New Markets Tax Credit and contains a borrower option to purchase the loan for one dollar at the end of the term.


6.	Bears interest at the greater of 4% or the Prime Rate plus 50 basis points.



Supplemental Report - December 31, 2017	24



Future Debt Maturities ¹
(in thousands)

Core Portfolio
	Total Debt Maturities						Acadia's Pro-rata Share						Weighted Average Interest Rate
	Scheduled						Scheduled								Fixed-Rate Debt		Variable-Rate Debt
Year	Amortization		Maturities		Total		Amortization		Maturities		Total		Total Debt		Fixed-Rate Debt		Variable-Rate Debt

2018	$	5,112	$	66,308	$	71,420	$	4,069	$	45,891	$	49,960	3.40	%	6.00	%	3.02	%
2019	5,194		—		5,194		4,003		—		4,003		n/a		n/a		n/a
2020	5,432		91,500		96,932		4,188		91,500		95,688		2.72	%	n/a		2.72	%
2021	5,670		200,000		205,670		4,370		200,000		204,370		2.67	%	n/a		2.67	%
2022	5,890		50,000		55,890		4,537		50,000		54,537		2.97	%	n/a		2.97	%
Thereafter	23,684		474,970		498,654		20,050		288,083		308,133		3.92	%	4.17	%	3.10	%
Total	$	50,982	$	882,778	$	933,760	$	41,217	$	675,474	$	716,691


Funds
	Total Debt Maturities						Acadia's Pro-rata Share						Weighted Average Interest Rate
	Scheduled						Scheduled								Fixed-Rate Debt		Variable-Rate Debt
Year	Amortization		Maturities		Total		Amortization		Maturities		Total		Total Debt		Fixed-Rate Debt		Variable-Rate Debt

2018	$	3,603	$	56,521	$	60,124	$	746	$	11,961	$	12,707	3.41	%	n/a		3.41	%
2019	3,970		206,530		210,500		831		45,994		46,825		4.19	%	1.00	%	4.32	%
2020	2,362		515,693		518,055		556		119,835		120,391		3.99	%	4.75	%	3.55	%
2021	2,172		49,482		51,654		512		11,286		11,798		3.72	%	n/a		3.72	%
2022	1,609		43,731		45,340		383		10,111		10,494		3.29	%	n/a		3.29	%
Thereafter	357		28,407		28,764		84		6,960		7,044		2.92	%	3.57	%	2.62	%
Total	$	14,073	$	900,364	$	914,437	$	3,112	$	206,147	$	209,259

__________


1.	Does not include any applicable extension options or subsequent refinancings.



Supplemental Report - December 31, 2017	25



Core Portfolio Retail Properties - Detail ¹
																			Leased
		Year	Acadia's		Gross Leasable Area (GLA)					In Place Occupancy									Occupancy			Annualized Base Rent Total		Annualized Base Rent PSF Total
Property	Key Tenants	Acquired	Interest		Street	Anchors	Shops	Total		Street		Anchors		Shops		Total			Total			Annualized Base Rent Total		Annualized Base Rent PSF Total

STREET AND URBAN RETAIL
Chicago Metro
664 N. Michigan Avenue	Tommy Bahama, Ann Taylor Loft	2013	100.0	%	18,141	—	—	18,141		100.0	%	—	%	—	%	100.0	%		100.0	%		$	4,597,909	$	253.45
840 N. Michigan Avenue	H & M, Verizon Wireless	2014	88.4	%	87,135	—	—	87,135		100.0	%	—	%	—	%	100.0	%		100.0	%		7,673,433		88.06
Rush and Walton Streets Collection - 5 properties	Lululemon, BHLDN, Marc Jacobs	2011/12	100.0	%	32,501	—	—	32,501		85.3	%	—	%	—	%	85.3	%		85.3	%		5,854,996		211.19
651-671 West Diversey	Trader Joe's, Urban Outfitters	2011	100.0	%	46,259	—	—	46,259		100.0	%	—	%	—	%	100.0	%		100.0	%		2,008,816		43.43
Clark Street and W. Diversey Collection - 3 properties	Ann Taylor, Akira	2011/12	100.0	%	23,531	—	—	23,531		91.3	%	—	%	—	%	91.3	%		91.3	%		1,244,789		57.94
Halsted and Armitage Collection - 9 properties	Club Monaco	2011/12	100.0	%	45,151	—	—	45,151		75.9	%	—	%	—	%	75.9	%		75.9	%		1,235,966		36.07
North Lincoln Park Chicago Collection - 6 properties	Forever 21, Aldo, Carhartt	2011/14	100.0	%	22,125	—	28,836	50,961		100.0	%	—	%	73.5	%	85.0	%		85.0	%		1,733,715		40.02
State and Washington	H & M, Nordstrom Rack	2016	100.0	%	78,819	—	—	78,819		100.0	%	—	%	—	%	100.0	%		100.0	%		2,969,482		37.67
151 N. State Street	Walgreens	2016	100.0	%	27,385	—	—	27,385		100.0	%	—	%	—	%	100.0	%		100.0	%		1,430,000		52.22
North and Kingsbury	Old Navy, Pier 1 Imports	2016	100.0	%	41,700	—	—	41,700		100.0	%	—	%	—	%	100.0	%		100.0	%		1,608,789		38.58
Concord and Milwaukee	—	2016	100.0	%	13,105	—	—	13,105		87.8	%	—	%	—	%	87.8	%		87.8	%		355,976		30.94
California and Armitage	—	2016	100.0	%	—	—	18,275	18,275		—	%	—	%	70.6	%	70.6	%		70.6	%		612,519		47.47
Roosevelt Galleria	Petco, Vitamin Shoppe	2015	100.0	%	—	—	37,995	37,995		—	%	—	%	63.4	%	63.4	%		63.4	%		701,982		29.14
Sullivan Center	Target, DSW	2016	100.0	%	176,181	—	—	176,181		98.6	%	—	%	—	%	98.6	%		100.0	%		6,444,079		37.10
					612,033	—	85,106	697,139		96.4	%	—	%	68.4	%	93.0	%		93.4	%		38,472,451		59.34
New York Metro
Soho Collection - 4 properties	Paper Source, Kate Spade, 3x1 Jeans	2011/14	100.0	%	12,511	—	—	12,511	—	82.4	%	—	%	—	%	82.4	%	—	82.4	%	—	3,157,177		306.25
5-7 East 17th Street	Union Fare	2008	100.0	%	11,467	—	—	11,467		100.0	%	—	%	—	%	100.0	%		100.0	%		1,300,014		113.37
200 West 54th Street	Stage Coach Tavern	2007	100.0	%	5,777	—	—	5,777		77.8	%	—	%	—	%	77.8	%		77.8	%		1,941,814		432.04
61 Main Street	—	2014	100.0	%	3,400	—	—	3,400		—	%	—	%	—	%	—	%		—	%		—		—
181 Main Street	TD Bank	2012	100.0	%	11,350	—	—	11,350		100.0	%	—	%	—	%	100.0	%		100.0	%		870,274		76.68
4401 White Plains Road	Walgreens	2011	100.0	%	—	12,964	—	12,964		—	%	100.0	%	—	%	100.0	%		100.0	%		625,000		48.21
Bartow Avenue	Mattress Firm	2005	100.0	%	—	—	14,590	14,590		—	%	—	%	100.0	%	100.0	%		100.0	%		485,495		33.28
239 Greenwich Avenue	Betteridge Jewelers	1998	75.0	%	16,553	—	—	16,553		100.0	%	—	%	—	%	100.0	%		100.0	%		1,546,912		93.45
252-256 Greenwich Avenue	Madewell, Jack Wills	2014	100.0	%	7,986	—	—	7,986		71.0	%	—	%	—	%	71.0	%		71.0	%		1,027,271		181.17
2914 Third Avenue	Planet Fitness	2006	100.0	%	—	21,650	18,670	40,320		—	%	100.0	%	100.0	%	100.0	%		100.0	%		963,001		23.88
868 Broadway	Dr. Martens	2013	100.0	%	2,031	—	—	2,031		100.0	%	—	%	—	%	100.0	%		100.0	%		745,315		366.97
313-315 Bowery ²	John Varvatos, Patagonia	2013	100.0	%	6,600	—	—	6,600		100.0	%	—	%	—	%	100.0	%		100.0	%		479,160		72.60
120 West Broadway	HSBC Bank	2013	100.0	%	13,838	—	—	13,838		100.0	%	—	%	—	%	100.0	%		100.0	%		2,255,814		163.02
2520 Flatbush Avenue	Bob's Discount Furniture, Capital One	2014	100.0	%	—	—	29,114	29,114		—	%	—	%	100.0	%	100.0	%		100.0	%		1,064,374		36.56
991 Madison Avenue	Vera Wang, Perrin Paris	2016	100.0	%	7,513	—	—	7,513		65.6	%	—	%	—	%	65.6	%		65.6	%		1,553,292		315.16
Shops at Grand	Stop & Shop (Ahold)	2014	100.0	%	—	52,336	47,639	99,975		—	%	100.0	%	84.7	%	92.7	%		92.7	%		2,873,056		31.00
Gotham Plaza	Bank of America, Children's Place	2016	49.0	%	—	—	26,182	26,182		—	%	—	%	68.6	%	68.6	%		68.6	%		1,064,361		59.26
					99,026	86,950	136,195	322,171		88.1	%	100.0	%	88.6	%	91.5	%		91.5	%		21,952,330		74.47
San Francisco Metro
City Center	City Target, Best Buy	2015	100.0	%	—	174,311	30,337	204,648		—	%	100.0	%	87.3	%	98.1	%		98.1	%		7,759,488		38.65
555 9th Street	Bed, Bath & Beyond, Nordstrom Rack	2016	100.0	%	—	119,862	28,970	148,832		—	%	100.0	%	100.0	%	100.0	%		100.0	%		6,105,614		41.02
					—	294,173	59,307	353,480		—	%	100.0	%	93.5	%	98.9	%		98.9	%		13,865,102		39.66
District of Columbia Metro
1739-53 & 1801-03 Connecticut Avenue	Ruth Chris Steakhouse, TD Bank	2012	100.0	%	20,669	—	—	20,669		100.0	%	—	%	—	%	100.0	%		100.0	%		1,266,138		61.26
Rhode Island Place Shopping Center	Ross Dress for Less	2012	100.0	%	—	25,134	32,533	57,667		—	%	—	%	80.7	%	45.5	%		93.4	%		1,246,065		47.49



Supplemental Report - December 31, 2017	26



Core Portfolio Retail Properties - Detail ¹
																	Leased
		Year	Acadia's		Gross Leasable Area (GLA)				In Place Occupancy								Occupancy		Annualized Base Rent Total		Annualized Base Rent PSF Total
Property	Key Tenants	Acquired	Interest		Street	Anchors	Shops	Total	Street		Anchors		Shops		Total		Total
M Street and Wisconsin Corridor - 25 Properties ³	Lululemon, North Face, Coach	2011/16	25.4	%	241,182	—	—	241,182	91.5	%	—	%	—	%	91.5	%	91.5	%	15,168,759		68.74
					261,851	25,134	32,533	319,518	92.2	%	—	%	80.7	%	83.8	%	92.4	%	17,680,962		66.03
Boston Metro
330-340 River Street	Whole Foods	2012	100.0	%	—	40,800	13,426	54,226	—	%	100.0	%	100.0	%	100.0	%	100.0	%	1,200,045		22.13
165 Newbury Street	Starbucks	2016	100.0	%	1,050	—	—	1,050	100.0	%	—	%	—	%	100.0	%	100.0	%	261,777		249.31
					1,050	40,800	13,426	55,276	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	1,461,822		26.45

Total Street and Urban Retail					973,960	447,057	326,567	1,747,584	94.4	%	94.4	%	83.9	%	92.4	%	94.2	%	$	93,432,667	$	57.86

Acadia Share Total Street and Urban Retail					779,817	447,057	313,214	1,540,088	95.2	%	94.4	%	84.6	%	92.8	%	95.1	%	$	80,531,452	$	56.35

SUBURBAN PROPERTIES
New Jersey
Elmwood Park Shopping Center	Walgreens, Acme	1998	100.0	%	—	62,610	81,300	143,910	—	%	100.0	%	95.0	%	97.2	%	97.2	%	$	4,046,223	$	28.93
Marketplace of Absecon	Rite Aid, Dollar Tree	1998	100.0	%	—	46,724	57,832	104,556	—	%	100.0	%	82.4	%	90.3	%	90.3	%	1,362,152		14.43
60 Orange Street	Home Depot	2012	98.0	%	—	101,715	—	101,715	—	%	100.0	%	—	%	100.0	%	100.0	%	695,000		6.83

New York
Village Commons Shopping Center	—	1998	100.0	%	—	—	87,128	87,128	—	%	—	%	91.1	%	91.1	%	91.1	%	2,612,204		32.91
Branch Plaza	LA Fitness, The Fresh Market	1998	100.0	%	—	76,264	47,114	123,378	—	%	100.0	%	79.6	%	92.2	%	92.2	%	3,024,863		26.59
Amboy Center	Stop & Shop (Ahold)	2005	100.0	%	—	37,266	26,024	63,290	—	%	100.0	%	100.0	%	100.0	%	100.0	%	2,072,234		32.74
Pacesetter Park Shopping Center	Stop & Shop (Ahold)	1999	100.0	%	—	52,052	45,754	97,806	—	%	100.0	%	100.0	%	100.0	%	100.0	%	1,338,641		13.69
LA Fitness	LA Fitness	2007	100.0	%	—	55,000	—	55,000	—	%	100.0	%	—	%	100.0	%	100.0	%	1,485,287		27.01
Crossroads Shopping Center	Home Goods, PetSmart, Kmart, DSW	1998	49.0	%	—	202,727	109,231	311,958	—	%	100.0	%	84.5	%	94.6	%	94.6	%	6,834,714		23.16
New Loudon Center	Price Chopper, Marshalls	1993	100.0	%	—	251,058	4,615	255,673	—	%	100.0	%	100.0	%	100.0	%	100.0	%	2,153,484		8.42
28 Jericho Turnpike	Kohl's	2012	100.0	%	—	96,363	—	96,363	—	%	100.0	%	—	%	100.0	%	100.0	%	1,815,000		18.84
Bedford Green	Shop Rite, CVS	2014	100.0	%	—	37,981	52,608	90,589	—	%	100.0	%	74.0	%	84.9	%	84.9	%	2,495,885		32.45
Connecticut
Town Line Plaza ⁴	Wal-Mart, Stop & Shop (Ahold)	1998	100.0	%	—	163,159	43,187	206,346	—	%	100.0	%	93.6	%	98.7	%	98.7	%	1,756,884		16.32

Massachusetts
Methuen Shopping Center	Wal-Mart, Market Basket	1998	100.0	%	—	120,004	10,017	130,021	—	%	100.0	%	100.0	%	100.0	%	100.0	%	1,360,858		10.47
Crescent Plaza	Home Depot, Shaw's (Supervalu)	1993	100.0	%	—	156,985	61,163	218,148	—	%	100.0	%	67.7	%	90.9	%	90.9	%	1,764,520		8.90
201 Needham Street	Michael's	2014	100.0	%	—	20,409	—	20,409	—	%	100.0	%	—	%	100.0	%	100.0	%	591,861		29.00
163 Highland Avenue	Staples, Petco	2015	100.0	%	—	40,505	—	40,505	—	%	100.0	%	—	%	100.0	%	100.0	%	1,311,747		32.38

Vermont
The Gateway Shopping Center	Shaw's (Supervalu)	1999	100.0	%	—	73,184	28,471	101,655	—	%	100.0	%	83.1	%	95.3	%	98.2	%	1,956,540		20.20

Illinois
Hobson West Plaza	Garden Fresh Markets	1998	100.0	%	—	51,692	47,445	99,137	—	%	100.0	%	64.5	%	83.0	%	85.8	%	897,118		10.90

Indiana
Merrillville Plaza	Jo-Ann Fabrics, TJ Maxx	1998	100.0	%	—	123,220	112,867	236,087	—	%	100.0	%	93.4	%	96.8	%	96.8	%	3,350,975		14.66

Michigan
Bloomfield Town Square	Best Buy, Home Goods, TJ Maxx, Dick's Sporting Goods	1998	100.0	%	—	153,839	81,947	235,786	—	%	100.0	%	72.9	%	90.6	%	90.6	%	3,266,797		15.29

Ohio
Mad River Station	Babies 'R' Us	1999	100.0	%	—	58,185	65,150	123,335	—	%	100.0	%	56.7	%	77.1	%	82.7	%	1,255,391		13.20



Supplemental Report - December 31, 2017	27



Core Portfolio Retail Properties - Detail ¹
																	Leased
		Year	Acadia's		Gross Leasable Area (GLA)				In Place Occupancy								Occupancy		Annualized Base Rent Total		Annualized Base Rent PSF Total
Property	Key Tenants	Acquired	Interest		Street	Anchors	Shops	Total	Street		Anchors		Shops		Total		Total
Delaware
Town Center	Lowes, Bed Bath & Beyond, Target, Dick's Sporting Goods	2003	61.1	%	—	775,803	48,608	824,411	—	%	89.1	%	91.3	%	89.2	%	93.8	%	12,107,759		16.46
Market Square Shopping Center	Trader Joe's, TJ Maxx	2003	100.0	%	—	42,850	59,197	102,047	—	%	100.0	%	100.0	%	100.0	%	100.0	%	3,034,567		29.74
Naamans Road	—	2006	100.0	%	—	—	19,850	19,850	—	%	—	%	30.1	%	30.1	%	63.9	%	433,785		72.60

Pennsylvania
Mark Plaza	Kmart	1993	100.0	%	—	104,956	1,900	106,856	—	%	100.0	%	100.0	%	100.0	%	100.0	%	244,279		2.29
Plaza 422	Home Depot	1993	100.0	%	—	139,968	16,311	156,279	—	%	100.0	%	100.0	%	100.0	%	100.0	%	850,978		5.45
Route 6 Plaza	Kmart	1994	100.0	%	—	146,568	29,021	175,589	—	%	100.0	%	100.0	%	100.0	%	100.0	%	1,327,169		7.56
Chestnut Hill	—	2006	100.0	%	—	—	37,646	37,646	—	%	—	%	100.0	%	100.0	%	100.0	%	953,589		25.33
Abington Towne Center ⁵	Target, TJ Maxx	1998	100.0	%	—	184,616	31,662	216,278	—	%	100.0	%	62.5	%	94.5	%	94.5	%	914,927		16.50

Total Suburban Properties					—	3,375,703	1,206,048	4,581,751	—	%	97.5	%	83.9	%	93.9	%	95.1	%	$	67,315,431	$	16.57

Acadia Share Total Suburban Properties					—	2,968,491	1,131,432	4,099,922	—	%	98.3	%	83.8	%	94.3	%	95.3	%	$	59,105,909	$	16.30

TOTAL CORE PROPERTIES					973,960	3,822,760	1,532,615	6,329,335	94.4	%	97.1	%	83.9	%	93.5	%	94.9	%	$	160,748,098	$	28.30

Acadia Share Total Core Properties					779,817	3,415,548	1,444,646	5,640,010	95.3	%	97.8	%	84.0	%	93.9	%	95.3	%	$	139,637,361	$	27.61

__________


1.	The above occupancy and rent amounts do not include space which is currently leased, other than "leased occupancy", but for which rent payment has not yet commenced. Residential and office GLA is excluded.


2.	Represents the annual base rent paid to Acadia pursuant to a master lessee and does not reflect the rent paid by the retail tenants at the property.


3.	Excludes 94,000 of office GLA.


4.	Anchor GLA includes a 97,300 square foot Wal-Mart store which is not owned by the Company. This square footage has been excluded for calculating annualized base rent per square foot.


5.	Anchor GLA includes a 157,616 square foot Target store which is not owned by the Company. This square footage has been excluded for calculating annualized base rent per square foot.



Supplemental Report - December 31, 2017	28



Core Portfolio Top Tenants - Ranked by Annual Base Rent (ABR) ¹

		Pro-Rata
	Number of Stores in Core Portfolio	Combined			Percentage of Total
Tenant	Number of Stores in Core Portfolio	GLA	ABR		GLA		ABR

Target	3	367,033	$	7,423,563	6.5	%	5.3	%

H & M	2	81,246	5,309,815		1.4	%	3.8	%

Royal Ahold ²	4	207,513	3,653,227		3.7	%	2.6	%

Walgreens	5	78,254	3,598,966		1.4	%	2.6	%

Best Buy ³	2	86,686	3,594,913		1.5	%	2.6	%

Nordstrom, Inc.	2	88,982	3,339,492		1.6	%	2.4	%

Albertsons Companies ⁴	3	171,182	3,303,956		3.0	%	2.4	%

Bed, Bath, and Beyond ⁵	3	115,273	2,796,651		2.0	%	2.0	%

Ascena Retail Group ⁶	5	23,233	2,566,755		3.0	%	2.4	%

LA Fitness International LLC	2	100,000	2,524,787		1.8	%	1.8	%

Lululemon	2	7,533	2,268,281		0.1	%	1.6	%
Trader Joe's	3	41,432	2,225,739		0.7	%	1.6	%
TJX Companies ⁷	7	208,450	2,095,098		3.7	%	1.5	%
Home Depot	3	312,718	1,893,791		5.5	%	1.4	%
Gap	3	36,769	1,746,817		0.7	%	1.3	%
Tapestry ⁸	2	4,250	1,463,174		0.1	%	1.0	%
JP Morgan Chase	7	28,715	1,405,144		0.5	%	1.0	%
Ulta Salon Cosmetic & Fragrance	3	31,497	1,395,401		0.6	%	1.0	%
DSW	2	35,842	1,318,894		0.6	%	0.9	%
Mattress Firm	8	39,442	1,289,023		0.7	%	0.9	%
TOTAL	71	2,066,050	$	55,213,487	36.6	%	39.5	%

__________


1.	Does not include tenants that operate at only one Acadia Core location


2.	Stop and Shop (4 locations)


3.	One of these Best Buy leases with GLA of 57,298 square feet expired in January 2018


4.	Shaw’s (2 locations), Acme (1 location)


5.	Bed Bath and Beyond (2 locations), Christmas Tree Shops (1 location)


6.	Ann Taylor Loft (2 locations), Catherine’s (1 location), Dress Barn (1 location), Lane Bryant (1 location)


7.	TJ Maxx (4 locations), Marshalls (1 location), HomeGoods (2 locations); Excludes TJ Maxx Clark and Diversey location under development which will increase TJX Companies % of GLA to 4.1%


8.	Kate Spade (2 locations)



Supplemental Report - December 31, 2017	29



Core Portfolio Lease Expirations (Pro Rata Basis)


	Street Tenants								Anchor Tenants								Shop Tenants								Total Tenants
		GLA			ABR					GLA			ABR					GLA			ABR					GLA			ABR
	Leases	Expiring	Percent				Percent		Leases	Expiring	Percent				Percent		Leases	Expiring	Percent				Percent		Leases	Expiring	Percent				Percent
Year	Expiring	SF	of Total		PSF		of Total		Expiring	SF	of Total		PSF		of Total		Expiring	SF	of Total		PSF		of Total		Expiring	SF	of Total		PSF		of Total

M to M ¹	2	5,204	0.7	%	$	36.59	0.3	%	—	—	—	%	$	—	—	%	6	22,944	1.9	%	$	14.58	0.9	%	8	28,148	0.4	%	$	18.65	0.4	%
2018	8	11,976	1.6	%	52.34		1.1	%	4	167,972	5.4	%	30.55		10.8	%	43	133,435	11.0	%	29.80		10.9	%	55	313,383	2.9	%	31.06		7.0	%
2019	11	47,167	6.4	%	62.39		5.3	%	10	355,171	11.5	%	10.57		7.9	%	35	105,167	8.7	%	25.62		7.4	%	56	507,505	10.1	%	18.50		6.7	%
2020	14	35,476	4.8	%	115.44		7.4	%	8	451,178	14.6	%	12.51		11.9	%	36	108,304	8.9	%	26.33		7.8	%	58	594,958	9.7	%	21.16		9.0	%
2021	22	96,100	12.9	%	51.82		8.9	%	14	576,194	18.7	%	14.06		17.1	%	42	164,901	13.6	%	24.15		10.9	%	78	837,195	10.8	%	20.38		12.2	%
2022	12	58,391	7.9	%	80.49		8.4	%	6	235,750	7.6	%	14.13		7.0	%	38	131,727	10.9	%	32.57		11.8	%	56	425,868	15.7	%	28.93		8.8	%
2023	12	136,055	18.3	%	66.67		16.3	%	9	286,403	9.3	%	16.61		10.0	%	23	94,858	7.8	%	29.09		7.6	%	44	517,316	8.4	%	32.07		11.9	%
2024	13	82,397	11.1	%	73.96		10.9	%	7	301,179	9.8	%	20.19		12.8	%	24	101,317	8.4	%	29.88		8.3	%	44	484,893	6.9	%	31.35		10.9	%
2025	11	42,102	5.7	%	138.53		10.5	%	6	142,943	4.6	%	18.37		5.5	%	24	76,477	6.3	%	39.08		8.2	%	41	261,522	9.4	%	43.77		8.2	%
2026	11	24,927	3.4	%	92.18		4.1	%	2	32,570	1.1	%	17.71		1.2	%	17	75,092	6.2	%	31.01		6.4	%	30	132,589	5.3	%	39.24		3.7	%
2027	6	17,231	2.3	%	78.41		2.4	%	2	66,650	2.2	%	23.33		3.3	%	19	88,267	7.3	%	26.78		6.5	%	27	172,148	2.6	%	30.61		3.8	%
Thereafter	10	185,130	24.9	%	72.85		24.4	%	8	467,943	15.2	%	12.72		12.5	%	20	109,815	9.0	%	44.26		13.3	%	38	762,888	17.8	%	31.85		17.4	%
Total	132	742,156	100.0	%	$	74.91	100.0	%	76	3,083,953	100.0	%	$	15.37	100.0	%	327	1,212,304	100.0	%	$	30.04	100.0	%	535	5,038,413	100.0	%	$	27.61	100.0	%

Anchor GLA Owned by Tenants		—								254,916								—								254,916
Total Vacant		37,661								76,679								232,342								346,681
Total Square Feet		779,817								3,415,548								1,444,646								5,640,010

_________


1.	Leases currently under month to month or in process of renewal



Supplemental Report - December 31, 2017	30



Core Portfolio - New and Renewal Rent Spreads ¹

	Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended				Year to Date
	March 31, 2017				June 30, 2017				September 30, 2017				December 31, 2017				December 31, 2017
	GAAP ²		Cash ³		GAAP ²		Cash ³		GAAP ²		Cash ³		GAAP ²		Cash ³		GAAP ²		Cash ³
New leases
Number of new leases executed	4		4		4		4		4		4		5		5		17		17
GLA	8,121		8,121		15,969		15,969		31,722		31,722		28,817		28,817		84,629		84,629
New base rent	$149.48		$139.58		$27.27		$26.79		$19.61		$18.57		$31.51		$31.31		$37.57		$36.07
Previous base rent	$124.63		$136.13		$24.48		$24.81		$17.12		$17.18		$20.36		$21.92		$29.93		$31.65
Average cost per square foot	$123.79		$123.79		$63.69		$63.69		$21.24		$21.24		$6.02		$6.02		$33.91		$33.91
Weighted Average Lease Term (years)	9.4		9.4		10.0		10.0		9.8		9.8		9.3		9.3		9.6		9.6
Percentage growth in base rent	19.9	%	2.5	%	11.4	%	8.0	%	14.5	%	8.1	%	54.8	%	42.8	%	25.5	%	14.0	%

Renewal leases
Number of renewal leases executed	15		15		16		16		11		11		13		13		55		55
GLA	156,327		156,327		157,478		157,478		29,532		29,532		72,062		72,062		415,399		415,399
New base rent	$19.11		$18.80		$22.81		$22.36		$25.79		$25.73		$22.10		$21.38		$21.51		$21.09
Expiring base rent	$15.73		$17.34		$19.83		$20.38		$22.65		$24.32		$20.19		$21.00		$18.55		$19.62
Average cost per square foot	$0.24		$0.24		$0.00		$0.00		$0.31		$0.31		$2.25		$2.25		$0.50		$0.50
Weighted Average Lease Term (years)	3.4		3.4		5.4		5.4		3.7		3.7		5.1		5.1		4.5		4.5
Percentage growth in base rent	21.5	%	8.4	%	15.0	%	9.7	%	13.9	%	5.8	%	9.5	%	1.8	%	16.0	%	7.5	%

Total new and renewal leases
Number of new and renewal leases executed	19		19		20		20		15		15		18		18		72		72
GLA commencing	164,448		164,448		173,447		173,447		61,254		61,254		100,879		100,879		500,028		500,028
New base rent	$25.55		$24.76		$23.22		$22.77		$22.59		$22.02		$24.79		$24.22		$24.23		$23.63
Expiring base rent	$21.11		$23.21		$20.26		$20.79		$19.79		$20.62		$20.24		$21.26		$20.48		$21.66
Average cost per square foot	$6.34		$6.34		$5.86		$5.86		$11.15		$11.15		$3.33		$3.33		$6.16		$6.16
Weighted average lease term (years)	3.7		3.7		5.8		5.8		6.9		6.9		6.3		6.3		5.3		5.3
Percentage growth in base rent	21.0	%	6.7	%	14.6	%	9.5	%	14.1	%	6.8	%	22.5	%	13.9	%	18.3	%	9.1	%

__________


1.	Based on lease execution dates. Does not include leased square footage and costs related to first generation space and the Company's major redevelopment projects; renewal leases include exercised options.


2.	Rents are calculated on a straight-line ("GAAP") basis.


3.	Rents have not been calculated on a straight-line basis. Previous/expiring rent is that as of time of expiration and includes any percentage rent paid as well. New rent is that which is paid at commencement.



Supplemental Report - December 31, 2017	31



Core Portfolio Capital Expenditures




	Quarter Ended		Quarter Ended		Quarter Ended		Quarter Ended		Year to Date		Prior Year Ended
	March 31, 2017		June 30, 2017		September 30, 2017		December 31, 2017		December 31, 2017		December 31, 2016

Leasing Commissions	$	474	$	202	$	189	$	549	$	1,414	$	2,252
Tenant Improvements	1,747		1,622		1,036		1,836		6,241		9,477
Capital Expenditures	47		59		1,306		1,230		2,642		1,074
Total Capital Expenditures	$	2,268	$	1,883	$	2,531	$	3,615	$	10,297	$	12,803



Supplemental Report - December 31, 2017	32



Fund Overview


I. KEY METRICS	Fund I			Fund II			Fund III			Fund IV			Fund V			Total
General Information:
Vintage	Sep-2001			Jun-2004			May-2007			May-2012			Aug-2016
Fund Size	$	90.0	Million	$	300.0	Million	$	502.5	Million	$	540.6	Million	$	520.0	Million	$	1,953.1	Million
Acadia's Commitment	$	20.0	Million	$	85.0	Million	$	123.3	Million	$	125.0	Million	$	104.5	Million	$	457.8	Million
Acadia's Pro Rata Share	22.2		%	28.3		%	24.5		%	23.1		%	20.1		%	23.4		%
Acadia's Promoted Share ¹	37.8		%	42.6		%	39.6		%	38.5		%	36.1		%	38.7		%
Preferred Return	9.0		%	8.0		%	6.0		%	6.0		%	6.0		%	6.4		%

Current-Quarter, Fund-Level Information:
Cumulative Contributions ²	$	86.6	Million	$	347.1	Million	$	411.5	Million	$	412.7	Million	$	45.8	Million	$	1,303.7	Million
Cumulative Net Distributions ³	$	194.5	Million	$	131.6	Million	$	551.9	Million	$	131.5	Million	$	0.0	Million	$	1,009.5	Million
Net Distributions/Contributions	224.6		%	37.9		%	134.1		%	31.9		%	N/A			77.4		%
Unfunded Commitment ⁴	$0.0 Million			$0.0 Million			$	38.5	Million	$	117.3	Million	$	474.2	Million	$	630.0	Million
Acquisition Dry Powder ⁵	N/A			N/A			N/A			N/A			$	419.0	Million	$	419.0	Million
Investment Period Closes	Closed			Closed			Closed			Closed			Aug-2019
Currently in a Promote Position? (Yes/No)	Yes			No			No			No			No

II. FEES & PRIORITY DISTRIBUTIONS EARNED BY ACADIA
Type:	Applicable to			Description
Asset Management ⁶	Fund I, II & III			1.5% of Implied Capital
Asset Management ⁶	Fund IV & V			1.5% of Implied Capital during the investment period, 1.25% of Implied Capital post-investment period
Property Management	All funds			4.0% of gross property revenues
Leasing	All funds			Market-rate leasing commissions
Construction/Project Management	All funds			Market-rate fees
Development	Fund III, IV & V			3.0% of total project costs

__________


1.	Acadia's "Promoted Share" reflects Acadia's share of fund profits once all partners (including Acadia) have received a return of their cumulative contributions plus their cumulative preferred return. Acadia's Promoted Share equals a 20% promote plus Acadia's pro rata share of the remaining 80%.


2.	With regard to Fund II, the additional contributions over original Fund Size reflects a prior-period distribution that was re-contributed to the Fund during 2016 to fund the on-going redevelopment of existing Fund II investments.


3.	Net of fees and promote.

Unfunded Commitments are set aside to complete leasing and development at existing fund investments and to make new Fund V investments. The Unfunded Commitment will not equal Fund Size less Cumulative Contributions in those instances where certain fund distributions have been marked as recallable or where the fund has released commitments due to, among other reasons, the closing of the fund's investment period or accelerated asset sales.


5.	Unfunded Commitments available to deploy into new unidentified investments.


6.	Implied Capital is Fund Size less capital attributed to sold investments or released. Post-investment period, Fund IV Implied Capital also excludes $50.0 million of general reserves.



Supplemental Report - December 31, 2017	33



Fund Retail Properties - Detail ¹
			Fund														Leased		Annualized		Annualized
		Year	Ownership		Gross Leasable Area				In Place Occupancy								Occupancy		Base Rent		Base Rent
	Anchors	Acquired	%		Street	Anchors	Shops	Total	Street		Anchors		Shops		Total		Total		Total		PSF
Fund II Portfolio Detail

NEW YORK
New York
City Point - Phase I and II	—	2007	94.2	%	—	307,049	167,951	475,000	—	%	100.0	%	22.4	%	72.6	%	80.1	%	$	9,384,250	$	27.21

Total - Fund II					—	307,049	167,951	475,000	—	%	100.0	%	22.4	%	72.6	%	80.1	%	$	9,384,250	$	27.21

Fund III Portfolio Detail

NEW YORK
New York
654 Broadway	—	2011	100.0	%	2,896	—	—	2,896	—	%	—	%	—	%	—	%	—	%	$	—	$	—
640 Broadway	Swatch	2012	63.1	%	4,247	—	—	4,247	70.6	%	—	%	—	%	70.6	%	70.6	%	975,313		325.28
3104 M Street	—	2012	80.0	%	—	—	3,608	3,608	—	%	—	%	—	%	—	%	—	%	—		—
Nostrand Avenue	—	2013	100.0	%	—	—	42,628	42,628	—	%	—	%	87.3	%	87.3	%	96.8	%	1,738,116		46.71

Total - Fund III					7,143	—	46,236	53,379	42.0	%	—	%	80.5	%	75.3	%	82.9	%	$	2,713,429	$	67.51

Fund IV Portfolio Detail

NEW YORK
New York
801 Madison Avenue	—		100.0	%	2,625	—	—	2,625	—	%	—	%	—	%	—	%	—	%	—		—
210 Bowery	—		100.0	%	2,300	—	—	2,300	—	%	—	%	—	%	—	%	—	%	—		—
27 East 61st Street	—		100.0	%	4,177	—	—	4,177	—	%	—	%	—	%	—	%	—	%	—		—
17 East 71st Street	The Row	2014	100.0	%	8,432	—	—	8,432	100.0	%	—	%	—	%	100.0	%	100.0	%	1,988,159		235.79
1035 Third Avenue ²	—	2015	100.0	%	7,617	—	—	7,617	67.1	%	—	%	—	%	67.1	%	67.1	%	982,035		192.14
Colonie Plaza	Price Chopper, Big Lots	2016	100.0	%	—	96,000	57,483	153,483	—	%	100.0	%	91.7	%	96.9	%	96.9	%	1,680,527		11.30

New Jersey
Paramus Plaza	Babies R Us, Ashley Furniture	2013	50.0	%	—	64,235	88,274	152,509	—	%	100.0	%	79.8	%	88.3	%	88.3	%	2,385,448		17.71

BOSTON
Massachusetts
Restaurants at Fort Point	—	2016	100.0	%	15,711	—	—	15,711	100.0	%	—	%	—	%	100.0	%	100.0	%	329,155		20.95

NORTHEAST
Maine
Airport Mall	Hannaford, Marshalls	2016	100.0	%	—	131,042	90,788	221,830	—	%	100.0	%	73.7	%	89.2	%	89.2	%	1,272,679		6.43
Wells Plaza	Reny's, Dollar Tree	2016	100.0	%	—	62,471	27,963	90,434	—	%	100.0	%	75.5	%	92.4	%	94.4	%	680,143		8.14
Shaw's Plaza (Waterville)	Shaw's	2016	100.0	%	—	87,492	31,523	119,015	—	%	100.0	%	100.0	%	100.0	%	100.0	%	1,407,316		11.82
Shaw's Plaza (Windham)	Shaw's	2017	100.0	%		66,698	57,632	124,330	—	%	100.0	%	70.8	%	86.5	%	86.5	%	1,008,393		9.38
JFK Plaza	Hannaford, TJ Maxx	2016	100.0	%	—	104,426	46,681	151,107	—	%	100.0	%	28.9	%	78.0	%	78.0	%	761,510		6.46

Pennsylvania
Dauphin Plaza	Price Rite, Ashley Furniture	2016	100.0	%	—	122,621	83,106	205,727	—	%	100.0	%	60.9	%	84.2	%	84.2	%	1,656,365		9.56
Mayfair Shopping Center	—	2016	100.0	%	—	25,673	89,738	115,411	—	%	—	%	80.2	%	62.4	%	62.4	%	1,365,002		18.95

MID-ATLANTIC
Virginia
Promenade at Manassas	Home Depot	2013	98.6	%	—	194,038	71,404	265,442	—	%	85.6	%	88.5	%	86.4	%	86.4	%	2,978,427		12.99
Lake Montclair	Food Lion	2013	100.0	%	—	33,000	72,832	105,832	—	%	100.0	%	97.8	%	98.5	%	98.5	%	2,009,651		19.28

Delaware
Eden Square	Giant Food, LA Fitness	2014	98.6	%	—	115,973	115,071	231,044	—	%	100.0	%	47.5	%	73.9	%	88.9	%	2,432,867		14.25



Supplemental Report - December 31, 2017	34



Fund Retail Properties - Detail ¹
			Fund														Leased		Annualized		Annualized
		Year	Ownership		Gross Leasable Area				In Place Occupancy								Occupancy		Base Rent		Base Rent
	Anchors	Acquired	%		Street	Anchors	Shops	Total	Street		Anchors		Shops		Total		Total		Total		PSF
MIDWEST
Illinois
938 W. North Avenue	Sephora	2013	100.0	%	33,228	—	—	33,228	16.1	%	—	%	—	%	16.1	%	16.1	%	326,350		61.00
Lincoln Place	Kohl's, Marshall's	2017	100.0	%	—	—	271,866	271,866	—	%	—	%	91.2	%	91.2	%	91.2	%	2,884,796		11.63

SOUTHEAST
Georgia
Broughton Street Portfolio - 19 properties	J. Crew, L'Occitane, Lululemon, Michael Kors	2014	50.0	%	115,640	—	—	115,640	76.3	%	—	%	—	%	76.3	%	76.3	%	3,441,130		39.00

North Carolina
Wake Forest Crossing	—	2016	100.0	%	—	113,353	89,778	203,131	—	%	100.0	%	96.7	%	98.5	%	98.5	%	2,955,442		14.77

WEST
California
146 Geary Street	—	2015	100.0	%	11,436	—	—	11,436	—	%	—	%	—	%	—	%	—	%	—		—
Union and Fillmore Collection - 4 properties	—	2015	90.0	%	10,048	—	—	10,048	71.1	%	—	%	—	%	71.1	%	71.1	%	689,790		96.55

Total - Fund IV					211,214	1,217,022	1,194,139	2,622,375	61.5	%	95.6	%	79.0	%	85.3	%	86.7	%	$	33,235,185	$	14.86

Fund V Portfolio Detail

SOUTHWEST
New Mexico
Plaza Santa Fe	TJ Maxx, Best Buy, Ross Dress for Less	2017	100.0	%	—	93,578	130,645	224,223	—	%	100.0	%	80.0	%	88.3	%	97.3	%	3,401,093		17.18

MIDWEST
Michigan
New Towne Plaza	Kohl's, Jo-Ann's, DSW	2017	100.0	%	—	91,122	99,408	190,530	—	%	100.0	%	93.0	%	96.3	%	96.3	%	2,163,338		11.79
Fairlane Green	TJ Maxx, Bed Bath & Beyond, Michaels	2017	100.0	%	—	109,916	142,988	252,904	—	%	100.0	%	100.0	%	100.0	%	100.0	%	5,225,804		20.66

SOUTHEAST
North Carolina
Hickory Ridge	Kohl's, Best Buy, Dick's	2017	100.0	%	—	176,584	203,981	380,565	—	%	100.0	%	97.5	%	98.7	%	98.7	%	4,140,630		11.02

Total - Fund V					—	471,200	577,022	1,048,222	—	%	100.0	%	93.4	%	96.4	%	98.3	%	$	14,930,865	$	14.78

TOTAL FUND PROPERTIES					218,357	1,995,271	1,985,348	4,198,976	60.9	%	97.3	%	78.4	%	86.5	%	88.8	%	$	60,263,729	$	16.59
Acadia Share of Total Fund Properties					36,629	449,508	437,111	923,247	60.8	%	97.3	%	77.1	%	86.3	%	88.5	%	$	13,058,882	$	16.39

__________


1.	Excludes properties under development, see “Development Activity” page of this Supplemental Report. The above occupancy and rent amounts do not include space which is currently leased, other than "leased occupancy," but for which rent payment has not yet commenced. Residential and office GLA is excluded.


2.	Property also includes 12,371 sf of 2nd floor office space and 29,760 sf parking garage (131 spaces).



Supplemental Report - December 31, 2017	35



Funds Lease Expirations - Pro Rata Basis

	FUND II										FUND III
		Gross Leased Area					Base Rent					Gross Leased Area					Base Rent
	Leases	Expiring	Percent						Percent		Leases	Expiring	Percent						Percent
Year	Expiring	SF	of Total		Amount		PSF		of Total		Expiring	SF	of Total		Amount		PSF		of Total
M to M ¹	—	—	—	%	$	—	$	—	—	%	—	—	—	%	$	—	$	—	—	%
2018	—	—	—		—		—		—	%	3	1,286	13.4	%	64,716		50.32		11.2	%
2019	—	—	—		—		—		—	%	1	744	7.8	%	30,403		40.86		5.3	%
2020	—	—	—		—		—		—	%	2	729	7.6	%	32,319		44.33		5.6	%
2021	—	—	—		—		—		—	%	2	1,038	10.8	%	42,159		40.62		7.3	%
2022	—	—	—		—		—		—	%	3	1,330	13.9	%	104,026		78.22		18.0	%
2023	—	—	—		—		—		—	%	2	101	1.1	%	38,913		385.28		6.7	%
2024	—	—	—		—		—		—	%	1	755	7.9	%	42,557		56.37		7.4	%
2025	—	—	—		—		—		—	%	2	624	6.5	%	53,674		86.02		9.3	%
2026	—	—	—		—		—		—	%	3	412	4.3	%	83,945		203.75		14.5	%
2027	—	5,854	6.4	%	383,300		65.48		15.3	%	2	368	3.8	%	17,415		47.32		3.0	%
Thereafter	5	86,221	93.6	%	2,122,295		24.61		84.7	%	1	2,195	22.9	%	66,885		30.47		11.7	%
Total	5	92,075	100.0	%	$	2,505,595	$	27.21	100.0	%	22	9,582	100.0	%	$	577,012	$	60.25	100.0	%

		34,750	Total Vacant									2,937	Total Vacant
		126,825	Total Square Feet									12,519	Total Square Feet


	FUND IV										FUND V
		Gross Leased Area					Base Rent					Gross Leased Area					Base Rent
	Leases	Expiring	Percent						Percent		Leases	Expiring	Percent						Percent
Year	Expiring	SF	of Total		Amount		PSF		of Total		Expiring	SF	of Total		Amount		PSF		of Total
M to M ¹	7	4,102	0.8	%	$	52,707	$	12.85	0.8	%	—	382	0.2	%	$	9,998	$	26.17	0.3	%
2018	33	28,586	5.8	%	400,452		14.01		5.7	%	1	6,877	3.4	%	138,734		20.17		4.6	%
2019	27	35,868	7.3	%	401,140		11.18		5.8	%	5	8,480	4.2	%	113,670		13.40		3.8	%
2020	28	50,159	10.2	%	518,539		10.34		7.4	%	5	59,001	29.1	%	653,805		11.08		21.8	%
2021	35	77,193	15.8	%	991,028		12.84		14.2	%	14	55,892	27.5	%	998,014		17.86		33.3	%
2022	29	60,404	12.3	%	804,598		13.32		11.5	%	31	16,593	8.2	%	357,621		21.55		11.9	%
2023	19	54,476	11.1	%	581,902		10.68		8.3	%	11	14,005	6.9	%	220,711		15.76		7.4	%
2024	15	38,112	7.8	%	798,816		20.96		11.5	%	9	7,642	3.8	%	115,037		15.05		3.8	%
2025	17	22,254	4.5	%	701,721		31.53		10.1	%	2	509	0.3	%	13,985		27.48		0.5	%
2026	21	29,238	6.0	%	535,905		18.33		7.7	%	1	10,552	5.2	%	162,465		—		5.4	%
2027	16	23,895	4.9	%	335,132		14.03		4.8	%	3	4,761	2.3	%	88,063		18.50		2.9	%
Thereafter	13	65,421	13.4	%	853,232		13.04		12.2	%	2	18,316	8.9	%	129,001		7.04		4.3	%
Total	260	489,708	99.9	%	$	6,975,172	$	14.25	100.0	%	86	203,010	100.0	%	$	3,001,104	$	14.78	100.0	%

		83,503	Total Vacant									7,683	Total Vacant
		573,211	Total Square Feet									210,693	Total Square Feet

__________


1.	Leases currently under month to month or in process of renewal



Supplemental Report - December 31, 2017	36



Development Activity
($ in millions)

								Acquisition & Development Costs
Property	Ownership	Location	Estimated Stabilization	Est. SQFT Upon Completion	Leased Rate ¹		Key Tenants	Incurred		Estimated Future Range					Estimated Total Range					Outstanding Debt
FUND III

Cortlandt Crossing ¹	100.0%	Mohegan Lake, NY	2019	130,000	50	%	ShopRite	$	40.4	$	20.0	to	$	25.0	$	60.0	to	$	65.0	$	1.4
Broad Hollow Commons	100.0%	Farmingdale, NY	2020	180,000 - 200,000	—		TBD	16.5		33.5		to	43.5		50.0		to	60.0		—
								$	56.9	$	53.5		$	68.5	$	110.0		$	125.0	$	1.4

FUND IV

650 Bald Hill Road	90.0%	Warwick, RI	2018	161,000	72	%	Dick's Sporting Goods, Burlington Coat Factory	$	33.0	$	2.5	to	$	3.5	$	35.5	to	$	36.5	$	13.9
717 N. Michigan Avenue	100.0%	Chicago, IL	2018	62,000	25	%	Disney Store	109.2		10.8		to	18.3		120.0		to	127.5		63.9
								$	142.2	$	13.3		$	21.8	$	155.5		$	164.0	$	77.8

CORE

613-623 West Diversey	100.0%	Chicago, IL	2018	30,000	75	%	TJ Maxx	$	16.1	$	6.9	to	$	8.4	$	23.0		$	24.5	$	—
56 E Walton Street	100.0%	Chicago, IL	2018	TBD	—		TBD	8.5		2.0		to	3.0		10.5			11.5		—
								$	24.6	$	8.9		$	11.4	$	33.5		$	36.0	$	—

_________


1.	Projected development cost is shown net of reimbursement for public improvements.



Reconciles to Consolidated Balance Sheet as follows:

Development costs above	$	223.7

Development held as operating real estate	(24.6		)
Development costs of unconsolidated properties	(33.0		)
Deferred costs and other amounts	7.6

Total per consolidated balance sheet	$	173.7



Supplemental Report - December 31, 2017	37



Important Notes

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this supplemental disclosure may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934 and as such may involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations are generally identifiable by use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend” or “project” or the negative thereof or other variations thereon or comparable terminology. Factors which could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to those set forth under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K. These risks and uncertainties should be considered in evaluating any forward-looking statements contained or incorporated by reference herein.

USE OF FUNDS FROM OPERATIONS AS NON-GAAP FINANCIAL MEASURE

The Company considers funds from operations (“FFO”) as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) to be an appropriate supplemental disclosure of operating performance for an equity REIT due to its widespread acceptance and use within the REIT and analyst communities. FFO is presented to assist investors in analyzing the performance of the Company. It is helpful as it excludes various items included in net income that are not indicative of the operating performance, such as gains (or losses) from sales of property and depreciation and amortization. However, the Company’s method of calculating FFO may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. FFO does not represent cash generated from operations as defined by generally accepted accounting principles (“GAAP”) and is not indicative of cash available to fund all cash needs, including distributions. It should not be considered as an alternative to net income for the purpose of evaluating the Company’s performance or to cash flows as a measure of liquidity. Consistent with the NAREIT definition, the Company defines FFO as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The Company believes that income or gains derived from its RCP investments, including its investment in Albertson’s, are private-equity investments and, as such, should be treated as operating income and therefore FFO. The Company believes that this supplemental adjustment more appropriately reflects the results of its operations. The Company also provides one other supplemental disclosure of operating performance, adjusted funds from operations (“AFFO”). The Company defines AFFO as FFO adjusted for straight line rent, non-real estate depreciation, amortization of finance costs and costs of management contracts, tenant improvements, leasing commissions and capital expenditures.

USE OF NON-GAAP FINANCIAL MEASURES

Non-GAAP financial measures such as EBITDA, NOI, Same-Property NOI and lease spreads are widely used financial measures in many industries, including the REIT industry, and are presented to assist investors and analysts in analyzing the performance of the Company. They are helpful as they exclude various items included in net income that are not indicative of operating performance, such as gains (or losses) from sales of property and depreciation and amortization and is used in computing various financial ratios as a measure of operational performance. The Company computes EBITDA as the sum of net income before extraordinary items plus interest expense, depreciation, income taxes and amortization, less any gains (losses including impairment charges) on the sale of income producing properties. The Company computes NOI by taking the difference between Property Revenues and Property Expenses as detailed in this reporting supplement. Same-Property NOI includes properties in our Core Portfolio that we owned for both the current and prior periods presented, but excludes those properties which we acquired, sold or expected to sell, and redeveloped during these periods. The Company’s method of calculating EBITDA, NOI and Same-Property NOI may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. EBITDA, NOI and Same-Property NOI do not represent cash generated from operations as defined by GAAP and are not indicative of cash available to fund all cash needs, including distributions. They should not be considered as an alternative to net income for the purpose of evaluating the Company’s performance or to cash flows as a measure of liquidity.



Supplemental Report - December 31, 2017	38