false000089962900008996292022-08-022022-08-02

 

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): August 2, 2022

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:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Trading symbol	Name of exchange on which registered
Common shares of beneficial interest, par value $0.001 per share	AKR	The New York Stock Exchange

 

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 ☐

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. ☐

 

 

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Item 2.02. Results of Operations and Financial Condition.

 

On August 2, 2022, Acadia Realty Trust (the “Company”) issued a press release announcing its consolidated financial results for the quarter and year-to-date period ended June 30, 2022. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and incorporated herein by reference.

 

On the same day, the Company made available supplemental reporting information regarding the financial results, operations and portfolio of the Company as of and for the quarter and year-to-date period ended June 30, 2022. A copy of the supplemental reporting information is attached to this Current 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” pursuant to 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 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit Number	Description
99.1	Press release dated August 2, 2022
99.2	Supplemental Reporting Information as of and for the quarter and year-to-date period ended June 30, 2022
104	Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.)

 

 

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SIGNATURES

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

 

		ACADIA REALTY TRUST
Dated:		(Registrant)
		By:		/s/ John Gottfried
		Name:		John Gottfried
August 5, 2022		Title:		Executive Vice President and Chief Financial Officer

 

 

 

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Exhibit 99.1

 

 

Jennifer Han

(914) 288-8100

 

ACADIA REALTY TRUST REPORTS SECOND QUARTER 2022 OPERATING RESULTS

RYE, NY (August 02, 2022) - Acadia Realty Trust (NYSE: AKR) (“Acadia” or the “Company”) today reported operating results for the quarter and year-to-date period ended June 30, 2022. For the quarter ended June 30, 2022, net loss per share was $0.00 and for the six months ended June 30, 2022, net earnings per share was $0.17. All per share amounts are on a fully-diluted basis, where applicable. Acadia operates dual platforms, comprised of a high-quality core real estate portfolio (“Core Portfolio”), through which the Company owns and operates retail assets in the nation’s most dynamic 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 net income (loss), funds from operations ("FFO") as per NAREIT and Before Special Items, and net property operating income ("NOI").

Second Quarter and Recent Highlights

 

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“We finished another robust quarter evidenced by our operating results exceeding expectations. With the continuing momentum in Street retail, our fundamentals remain strong, and we expect this strength to continue to play out over the next several years,” stated Kenneth F. Bernstein, President and CEO of Acadia Realty Trust. "Notwithstanding the significant volatility in the capital markets, we continue to find ways to create meaningful shareholder value within our Core Portfolio and Fund Platform, including the strategic recapitalization of City Point."

 

CORE PORTFOLIO OPERATING RESULTS

 

The Company had a GAAP loss per share of $0.00, NAREIT FFO per share of $0.23 and FFO Before Special Items per share of $0.32 for the quarter ended June 30, 2022. Please refer to the Consolidated Financial Results section below for additional details.

Driven by profitable rent commencements on new leases (including key Street leases in New York City, Chicago and Washington D.C.) and improved credit conditions, the Company's same-property NOI, excluding redevelopments, increased 4.8% for the quarter ended June 30, 2022 and 7.1% for the six months ended June 30, 2022.

For the quarter ended June 30, 2022, the Company's pro-rata share of credit losses and reserves is as follows (dollars in millions):

 

		Core Same Store		Core Other		Funds		Total		Per Share
Second Quarter 2022 Credit Losses and Reserves
Credit Loss and Abatements - Billed Rents and Recoveries		$1.0		$0.1		$0.1		$1.2		$0.01
Prior Period (Benefit), Net		(1.3)		(1.5)		(0.1)		(2.9)		(0.03)
Straight-Line Rent Reserves		N/A		0.9		—		0.9		0.01
Total		$(0.3)		$(0.5)		$—		$(0.8)		$(0.01)

 

CORE AND FUND TRANSACTIONAL ACTIVITY

 

Core Acquisition (Previously Announced)

 

The Company completed the following Core acquisition totaling approximately $85 million during the second quarter.

 

Henderson Avenue Portfolio, Dallas, Texas. As previously announced, in April 2022, the Company completed its first acquisition in the Knox-Henderson corridor of Dallas, Texas with its purchase of the Henderson Avenue Portfolio ("Portfolio") for approximately $85 million, inclusive of transaction costs. The Portfolio is comprised of 14 operating retail assets, one residential building and two development and redevelopment sites on Henderson Avenue. The Portfolio is located in the heart of rapidly growing East Dallas, and in proximity to the city's most affluent communities of Highland Park, University Park, Uptown and Lakewood.

 

The Portfolio includes a strong line up of digitally-native retailers such as Warby Parker, Tecovas and Bonobos, and a collection of some of the most popular restaurants in the city, as well as a high-performing supermarket, Sprouts Farmers Market.

 

Significant redevelopment and densification opportunities are expected to enable the Company to add retail and office space to this Portfolio and further connect and activate this already thriving district. The Company intends to partner with a local development team to oversee the execution of these projects.

 

City Point Refinancing and Recapitalization

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In August 2022, Acadia refinanced and de-levered City Point, an approximately 550,000 square foot flagship retail property in Downtown Brooklyn, New York, held through Fund II. The approximately $295 million of aggregate debt on the property was refinanced with a single mortgage loan of approximately $200 million (with approximately $130 million of initial proceeds). The new loan has a three-year initial term, resulting in annual interest savings in excess of 150 basis points as compared to the prior blended interest rate. The Company provided a loan to its partners of approximately $65 million to fund their share of the refinancing and recapitalization of City Point.

 

Additionally, during the second quarter and post-quarter to date, the Company increased its effective ownership in Fund II from approximately 28% to approximately 62%, consistent with its long-standing goal to expand its ownership in City Point. During the second quarter, in conjunction with a multi-asset secondary offering by one of its limited partners, the Company was able to opportunistically acquire an additional 12% interest in City Point, increasing its ownership to approximately 40% at June 30, 2022. In August 2022, based upon the pricing used to acquire the 12% interest, the Company acquired an additional 22% interest in City Point from other investors, further increasing its interest to approximately 62%. The purchase price of the combined 33% interest was approximately $120 million, inclusive of approximately $110 million of assumed obligations. In addition, the remaining partners have certain redemption rights that could enable the Company to further increase its ownership.

 

The Company anticipates the refinancing and recapitalization to be slightly accretive in 2022 with further accretion in the next several years as City Point achieves stabilization.

 

City Point is located at the center of a densifying Downtown Brooklyn, which has seen approximately 18,000 new residential units since the area was rezoned. Several new and exciting tenants are anticipated to open at City Point over the next several months, most notably Sixpoint Brewery and Primark, who is replacing the former anchor, Century 21.

 

Fund Transactional Activity

Lincoln Place (Fund IV). In May 2022, Fund IV completed the disposition of its property located in Illinois for approximately $41 million and repaid the mortgage of $22.7 million. This sale generated a 14% IRR and 1.8x multiple on the Fund's equity investment.

 

Additionally, Fund V has an approximately $50 million acquisition in its pipeline. No assurance can be given that Fund V will successfully close on acquisitions in its pipeline, which are subject to customary conditions and market uncertainty.

 

CORE PORTFOLIO LEASING

During the second quarter, GAAP and cash leasing spreads were 15.4% and 4.3%, respectively, on 14 conforming new and renewal leases aggregating approximately 82,000 square feet.

As of June 30, 2022, the Core Portfolio was 90.5% occupied and 94.1% leased, representing 3.6% of signed but not yet commenced rents. As of March 31, 2022, the Core Portfolio was 90.5% occupied and 94.1% leased. The leased rate includes space that is leased but not yet occupied and excludes development and redevelopment properties.

During the second quarter and post-quarter to date, the Company continued to execute leases in its Core Portfolio, with Street leases signed on M Street in Washington D.C., Greenwich Avenue in Greenwich, CT and in Soho, NY.

BALANCE SHEET AND LIQUIDITY

As previously announced, in April 2022, the Company closed on a new $175 million five-year unsecured term loan. Additionally, in July 2022, the Company closed on a $75 million seven-year unsecured term loan. The proceeds of these loans were used to repay outstanding amounts under the revolving credit facility.

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As of June 30, 2022, approximately 90% of the Company's Core debt is fixed, inclusive of interest rate swap contracts with a weighted average duration of approximately 6 years.

CONSOLIDATED FINANCIAL RESULTS

A complete reconciliation, in dollars and per share amounts, of (i) net loss or income attributable to Acadia to FFO (as defined by NAREIT and Before Special Items) attributable to common shareholders and common OP Unit holders and (ii) operating income to NOI is included in the financial tables of this release.

 

Net (Loss) Income

 

Amounts discussed below are net of noncontrolling interests.

 

Net loss attributable to Acadia for the quarter ended June 30, 2022, was $0.4 million, or $0.00 per share, which included a $8.9 million loss, or $0.09 per share, from the unrealized mark-to-market holding loss on its investment in Albertsons supermarkets ("Albertsons"), partially offset by a $3.0 million gain, or $0.03 per share, on a Fund disposition.

 

Net income attributable to Acadia for the quarter ended June 30, 2021, was $3.7 million, or $0.04 per share, which included: (i) $1.5 million, or $0.02 per share, attributable to an aggregate gain on dispositions of Fund investments and (ii) $0.5 million, or $0.01 per share, primarily from the unrealized mark-to-market holding gain on Albertsons.

 

Net income attributable to Acadia for the six months ended June 30, 2022, was $16.5 million, or $0.17 per share, which included an $11.3 million gain, or $0.11 per share, on Fund dispositions offset by $5.3 million, or $0.05 per share, from the unrealized mark-to-market holding loss on Albertsons.

 

Net income attributable to Acadia for the six months ended June 30, 2021, was $8.5 million, or $0.09 per share, which included: (i) $6.6 million, or $0.07 per share, attributable to an aggregate gain on dispositions of Core Portfolio and Fund investments and (ii) $1.9 million, or $0.02 per share, primarily from the unrealized mark-to-market holding gain on Albertsons. These benefits were partially offset by $3.7 million, or $0.04 per share, related to credit loss, straight-line rent reserves and tenant abatements, primarily due to the COVID-19 Pandemic.

 

FFO as Defined by NAREIT

 

FFO for the quarter ended June 30, 2022 was $23.4 million, or $0.23 per share, which included $8.9 million, or $0.09 per share, from the unrealized mark-to-market holding loss on Albertsons.

 

FFO for the quarter ended June 30, 2021 was $28.1 million, or $0.30 per share, which included $0.5 million, or $0.01 per share, primarily from the unrealized mark-to-market holding gain on Albertsons.

 

FFO for the six months ended June 30, 2022 was $58.8 million, or $0.59 per share and included $5.3 million, or $0.05 per share, from the unrealized mark-to-market holding loss on Albertsons and was offset by $1.5 million, or $0.01 per share from the Fund III disposition of its interest in Self Storage Management.

 

FFO for the six months ended June 30, 2021 was $52.1 million, or $0.56 per share, which included $1.9 million, or $0.02 per share, primarily from the unrealized mark-to-market holding gain on Albertsons and was offset by $3.7 million, or $0.04 per share, related to credit loss, straight-line rent reserves and tenant abatements, primarily due to the COVID-19 Pandemic.

 

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FFO Before Special Items

 

FFO Before Special Items for the quarter ended June 30, 2022 was $32.3 million, or $0.32 per share, which excluded $8.9 million, or $0.09 per share, from the unrealized mark-to-market holding loss on Albertsons. The Company did not recognize any promote income for the quarter ended June 30, 2022.

 

FFO Before Special Items for the quarter ended June 30, 2021 was $27.6 million, or $0.30 per share, which excluded $0.5 million, or $0.01 per share primarily from the unrealized mark-to-market holding gain on Albertsons.

 

FFO Before Special Items for the six months ended June 30, 2022 was $65.0 million, or $0.65 per share, which excluded $5.1 million, or $0.05 per share, from the unrealized mark-to-market holding loss on Albertsons and $0.9 million, or $0.01 per share for net acquisition and transaction costs from a Core acquisition.

 

FFO Before Special Items for the six months ended June 30, 2021 was $50.2 million, or $0.54 per share, which excluded $1.9 million, or $0.02 per share, primarily from the unrealized mark-to-market holding gain on Albertsons.

 

2022 GUIDANCE

The Company updated its annual 2022 guidance of earnings per share, NAREIT Funds from Operations and FFO Before Special Items attributable to Common Shareholders and Common OP Unit holders. Additionally, the Company updated its net income and FFO to reflect the unrealized holding (losses) gains recognized related to its investment in Albertsons through June 30, 2022. The Company has not reflected any forward-looking estimates involving future unrealized holding gains or losses (i.e. changes in share price) on Albertsons in its net income and NAREIT FFO guidance assumptions. Unrealized holding (losses) gains on Albertson's shares are excluded from FFO Before Special Items. The revised guidance is based upon Acadia's current view of existing market conditions and assumptions for the year ending December 31, 2022. Updated first quarter guidance was previously announced on May 2, 2022.

 

		2022 Annual Guidance
		Initial		Updated Q1		Revised Q2
Net earnings per share attributable to Common Shareholders		$0.19 to $0.32		$0.25 to $0.37		$0.27 to $0.36
Depreciation of real estate and amortization of leasing costs (net of noncontrolling interests' share)		1.01 to 1.04		1.01 to 1.04		1.01 to 1.04
Gain on disposition of properties (net of noncontrolling interests' share)		(0.07)		(0.07)		(0.15)
Noncontrolling interest in Operating Partnership		0.02		0.02		0.02
NAREIT Funds from operations per share attributable to Common Shareholders and Common OP Unit holders		$1.15 to $1.31		$1.21 to $1.36		$1.15 to $1.27
Net Promote and other Core and Fund profits		(0.06) to (0.10)		(0.06) to (0.11)		(0.06) to (0.12)
Less: Albertsons unrealized holding losses (gains) (net of noncontrolling interest share) for the six months ended June 30, 2022		—		(0.04)		0.05
Funds from operations Before Special Items, excluding Net Promote and other Core and Fund profits		$1.09 to $1.21		$1.11 to $1.21		$1.14 to $1.20
Net Promote and other Core and Fund profits(a)		0.06 to 0.10		0.06 to 0.11		0.06 to 0.12
Funds from operations Before Special Items per share attributable to Common Shareholders and Common OP Unit holders		$1.15 to $1.31		$1.17 to $1.32		$1.20 to $1.32

__________

 

(a) The remaining Net Promote and other Core and Fund profits anticipated to be recognized in the second half of 2022 relate to the expected realization of gains from the sale of Albertson's shares. The lock-up on the sale of the shares was extended through September 2022.

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CONFERENCE CALL

Management will conduct a conference call on Wednesday, August 3, 2022 at 12:00 PM ET to review the Company’s earnings and operating results. Participant registration and webcast information is listed below.

Live Conference Call:

Date: Wednesday, August 3, 2022

Time: 12:00 PM ET

Participant Registration: Second Quarter 2022 Registration

Webcast Listen-only and Replay: www.acadiarealty.com under Investors, Presentations & Events

 

The Company uses, and intends to use, the Investors page of its website, which can be found at www.acadiarealty.com, as a means of disclosing material nonpublic information and of complying with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations that may include material nonpublic information. Accordingly, investors should monitor the Investors page, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, the website is not incorporated by reference into, and is not a part of, this document.

 

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 Portfolio 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 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 statements in this press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations are generally identifiable by the use of words, such as “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend” or “project,” or the negative thereof, or other variations thereon or comparable terminology. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the Company's actual results and financial performance to be materially different from future results and financial performance expressed or implied by such forward-looking statements, including, but not limited to: (i) the economic, political and social impact of, and uncertainty surrounding the COVID-19 Pandemic, including its impact on the Company’s tenants and their ability to make rent and other payments or honor their commitments under existing leases; (ii) macroeconomic conditions, such as a disruption of or lack of access to the capital markets; (iii) the Company’s success in implementing its business strategy and its ability to identify, underwrite, finance, consummate and integrate diversifying acquisitions and investments; (iv) changes in general economic conditions or economic conditions in the markets in which the Company may, from time to time, compete, and their effect on the Company’s revenues, earnings and funding sources; (v) increases in the Company’s borrowing costs as a result of rising inflation, changes in interest rates and other factors, including the discontinuation of the USD London Interbank Offered Rate, which is currently anticipated to occur in 2023; (vi) the Company’s ability to pay down, refinance, restructure or extend its indebtedness as it becomes due; (vii) the Company’s investments in joint ventures and unconsolidated entities, including its lack of sole decision-making authority and its reliance on its joint venture partners’ financial condition; (viii) the Company’s ability to obtain the financial results expected from its development and redevelopment projects; (ix) the tenants’ ability and willingness to renew their leases with the Company upon expiration, the Company’s ability to re-lease its properties on the same or better terms in the event of nonrenewal or in the event the Company exercises its right to replace an existing tenant, and obligations the Company may incur in connection with the replacement of an existing tenant; (x) the

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Company’s potential liability for environmental matters; (xi) damage to the Company’s properties from catastrophic weather and other natural events, and the physical effects of climate change; (xii) uninsured losses; (xiii) the Company’s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax and other considerations; (xiv) information technology security breaches, including increased cybersecurity risks relating to the use of remote technology during the COVID-19 Pandemic; (xv) the loss of key executives; and (xvi) the accuracy of the Company’s methodologies and estimates regarding environmental, social and governance (“ESG”) metrics, goals and targets, tenant willingness and ability to collaborate towards reporting ESG metrics and meeting ESG goals and targets, and the impact of governmental regulation on its ESG efforts.

 

The factors described above are not exhaustive and additional factors could adversely affect the Company’s future results and financial performance, including the risk factors discussed under the section captioned “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, and other periodic or current reports the Company files with the SEC. Any forward-looking statements in this press release speak only as of the date hereof. The Company 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 the Company’s expectations with regard thereto or change in the events, conditions or circumstances on which such forward-looking statements are based.

 

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ACADIA REALTY TRUST AND SUBSIDIARIES

Consolidated Statements of Income (a)

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

 

		Three Months Ended  June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Revenues						(As Restated)(b)								(As Restated)(b)
Rental income		$	80,559			$	72,069			$	160,026			$	138,067
Other			3,700				988				5,740				3,177
Total revenues			84,259				73,057				165,766				141,244
Operating expenses
Depreciation and amortization			34,971				30,540				68,684				61,180
General and administrative			10,661				10,653				22,598				19,645
Real estate taxes			11,628				12,214				22,908				23,420
Property operating			13,567				12,636				26,917				25,845
Total operating expenses			70,827				66,043				141,107				130,090
Gain on disposition of properties			12,216				5,909				41,031				10,521
Operating income			25,648				12,923				65,690				21,675
Equity in earnings of unconsolidated affiliates			1,280				899				4,410				2,781
Interest and other income			2,961				2,054				5,896				3,754
Realized and unrealized holding (losses) gains on investment in Albertsons and other			(26,283	)			1,842				(10,553	)			6,967
Interest expense			(19,222	)			(17,074	)			(37,147	)			(33,688	)
(Loss) income from continuing operations before income taxes			(15,616	)			644				28,296				1,489
Income tax provision			(209	)			(192	)			(24	)			(340	)
Net (loss) income			(15,825	)			452				28,272				1,149
Net loss (income) attributable to noncontrolling interests			15,451				3,259				(11,808	)			7,379
Net (loss) income attributable to Acadia		$	(374	)		$	3,711			$	16,464			$	8,528
Less: net income attributable to participating securities			—				(156	)			(408	)			(312	)
Net (loss) income attributable to Common Shareholders -    basic and diluted (loss) earnings per share		$	(374	)		$	3,555			$	16,056			$	8,216
Weighted average shares for basic and diluted (loss) earnings per share			94,945				86,824				94,120				86,575
Net (loss) earnings per share - basic and diluted (C)		$	0.00			$	0.04			$	0.17			$	0.09

 

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ACADIA REALTY TRUST AND SUBSIDIARIES

Reconciliation of Consolidated Net Income (Loss) to Funds from Operations (a, d)

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

 

		Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
						(As Restated)(b)								(As Restated)(b)
Net (loss) income attributable to Acadia		$	(374	)		$	3,711			$	16,464			$	8,528
Depreciation of real estate and amortization of leasing costs (net of    noncontrolling interests' share)			26,597				23,077				50,910				46,884
(Gain) loss on disposition of properties (net of noncontrolling interests' share)			(2,961	)			933				(9,837	)			(4,163	)
Income attributable to Common OP Unit holders			28				275				1,026				622
Distributions - Preferred OP Units			123				123				246				246
Funds from operations attributable to Common Shareholders and Common OP Unit holders		$	23,413			$	28,119			$	58,809			$	52,117
Adjustments for Special Items:
Add back: Acquisition costs, net of bargain purchase gain			—				—				859				—
Less: Unrealized holding (gain) loss on investment in Albertsons and other (net of noncontrolling interest share)			8,881				(487	)			5,311				(1,886	)
Funds from operations before Special Items attributable to Common Shareholders and Common OP Unit holders		$	32,294			$	27,632			$	64,979			$	50,231
Funds From Operations per Share - Diluted
Basic weighted-average shares outstanding, GAAP earnings			94,945				86,824				94,120				86,575
Weighted-average OP Units outstanding			5,311				5,135				5,313				5,127
Assumed conversion of Preferred OP Units to common shares			25				465				25				465
Assumed conversion of LTIP units and restricted share units to    common shares			—				203				440				87
Weighted average number of Common Shares and Common OP Units			100,281				92,627				99,898				92,254
Diluted Funds from operations, per Common Share and Common OP Unit		$	0.23			$	0.30			$	0.59			$	0.56
Diluted Funds from operations before Special Items, per Common Share and Common OP Unit		$	0.32			$	0.30			$	0.65			$	0.54

 

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ACADIA REALTY TRUST AND SUBSIDIARIES

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

(Dollars in thousands)

 

		Three Months Ended  June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
						(As Restated)(b)								(As Restated)(b)
Consolidated operating income		$	25,648			$	12,923			$	65,690			$	21,675
Add back:
General and administrative			10,661				10,653				22,598				19,645
Depreciation and amortization			34,971				30,540				68,684				61,180
Less:
Above/below market rent, straight-line rent and other adjustments			(5,667	)			(4,476	)			(12,263	)			(8,932	)
Gain on disposition of properties			(12,216	)			(5,909	)			(41,031	)			(10,521	)
Consolidated NOI			53,397				43,731				103,678				83,047
Noncontrolling interest in consolidated NOI			(15,313	)			(11,451	)			(31,098	)			(21,723	)
Less: Operating Partnership's interest in Fund NOI included above			(3,835	)			(2,999	)			(7,908	)			(5,534	)
Add: Operating Partnership's share of unconsolidated    joint ventures NOI (e)			3,567				3,764				7,340				7,064
NOI - Core Portfolio		$	37,816			$	33,045			$	72,012			$	62,854

 

10

 

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ACADIA REALTY TRUST AND SUBSIDIARIES

Consolidated Balance Sheets (a)

(Dollars in thousands)

		As of
		June 30, 2022				December 31, 2021
ASSETS
Investments in real estate, at cost
Land		$	845,022			$	739,641
Buildings and improvements			3,037,234				2,892,051
Tenant improvements			212,285				199,925
Construction in progress			12,494				11,131
Right-of-use assets - finance leases			25,086				25,086
			4,132,121				3,867,834
Less: Accumulated depreciation and amortization			(690,945	)			(648,461	)
Operating real estate, net			3,441,176				3,219,373
Real estate under development			203,036				203,773
Net investments in real estate			3,644,212				3,423,146
Notes receivable, net			137,306				153,886
Investments in and advances to unconsolidated affiliates			333,529				322,326
Other assets, net			204,432				186,509
Right-of-use assets - operating leases, net			39,024				40,743
Cash and cash equivalents			23,921				17,746
Restricted cash			11,023				9,813
Rents receivable, net			45,437				43,625
Assets of properties held for sale			—				63,952
Total assets		$	4,438,884			$	4,261,746
LIABILITIES
Mortgage and other notes payable, net		$	1,104,355			$	1,140,293
Unsecured notes payable, net			613,384				559,040
Unsecured line of credit			96,487				112,905
Accounts payable and other liabilities			197,094				236,415
Lease liability - operating leases, net			37,030				38,759
Dividends and distributions payable			18,398				14,460
Distributions in excess of income from, and investments in, unconsolidated affiliates			8,918				9,939
Total liabilities			2,075,666				2,111,811
Commitments and contingencies
Redeemable noncontrolling interest
EQUITY
Acadia Shareholders' Equity
Common shares, $0.001 par value, authorized 200,000,000 shares, issued and outstanding 94,928,598 and 89,303,545 shares, respectively			95				89
Additional paid-in capital			1,895,556				1,754,383
Accumulated other comprehensive income (loss)			11,240				(36,214	)
Distributions in excess of accumulated earnings			(214,279	)			(196,645	)
Total Acadia shareholders’ equity			1,692,612				1,521,613
Noncontrolling interests			670,606				628,322
Total equity			2,363,218				2,149,935
Total liabilities and equity		$	4,438,884			$	4,261,746

 

11

 

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ACADIA REALTY TRUST AND SUBSIDIARIES

Notes to Financial Highlights:

 

 

 

12

 

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Exhibit 99.2

EALTY TRUST—Q220SUPPLEMENTAL REPFORMATIO

 

 

 

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Table of Contents			Supplemental Report – June 30, 2022
Section I – Second Quarter 2022 Earnings Press Release
Section II – Financial Information			Section III – Core Portfolio Information
Company Information	3		Core Properties		27
Market Capitalization	4		Core Top Tenants		31
Operating Statements			Core Lease Expirations		32
Consolidated Income Statements	5		Core New and Renewal Rent Spreads		33
Income Statement - Pro-rata Adjustments	7		Core Capital Expenditures		34
Consolidated Balance Sheet	8
Balance Sheet - Pro-rata Adjustments	9
Funds from Operations (“FFO”), Adjusted FFO (“AFFO”)	11		Section IV – Fund Information
EBITDA	12
Same Property Net Operating Income	13		Fund Overview		35
Fee Income	14		Fund Properties		36
Structured Financing	15		Fund Lease Expirations		39
Other Information			Development and Redevelopment Activity		40
Transactional Activity	16
2022 Guidance	18
Net Asset Valuation Information	19
Selected Financial Ratios	20		Section V – Other Information
Debt Analysis
Summary	22		Important Notes		42
Detail	23
Maturities	25

 

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

 

 

 

 

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Supplemental Report – June 30, 2022				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		Jennifer Han		Symbol AKR
		Suite 300		Assistant Controller
		Rye, NY 10580		(914) 288-8100
				investorrelations@acadiarealty.com
Analyst Coverage
		Bank of America / Merrill Lynch		Citigroup - Global Markets		KeyBanc Capital Markets, Inc.
		Craig Schmidt - (646) 855-3640		Michael Bilerman - (212) 816-1383		Todd Thomas - (917) 368-2286
		craig.schmidt@bofa.com		michael.bilerman@citi.com		tthomas@key.com
		Green Street Advisors		Compass Point Research & Trading		J.P. Morgan Securities, Inc.
		Paulina Rojas Schmidt - (949) 640-8780		Floris van Dijkum - (646) 757-2621		Michael W. Mueller, CFA - (212) 622-6689
		projasschmidt@greenstreet.com		fvandijkum@compasspointllc.com		michael.w.mueller@jpmorgan.com
		Jefferies		Truist
		Linda Tsai - (212) 778-8011		Ki Bin Kim, CFA - (212) 303-4124
		ltsai@jefferies.com		kibin.kim@truist.com

 

 

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	Market Capitalization
Supplemental Report – June 30, 2022	(Including pro-rata share of Fund debt, in thousands)

 

										Changes in Total Outstanding Common														Weighted Average
		Total Market						Capitalization		Shares and OP Units (in thousands)														Diluted EPS								FFO
		Capitalization ($)				%		Based on Net Debt 1				Common Shares				Common OP Units				Total				Quarter				YTD				Quarter				YTD
Equity Capitalization
Common Shares			94,929							Balance at 12/31/2021			89,304				5,059				94,363
Common Operating Partnership ("OP") Units			5,316							ATM issuance			5,151				—				5,151
Combined Common Shares and OP Units			100,245							Vesting RS and LTIPs			11				279				290
										OP Conversions			36				(36	)			—
Share Price at June 30, 2022		$	15.62							Other			6				—				6
										Balance at 3/31/2022			94,508				5,302				99,810				93,310				93,310				99,103				99,103
Equity Capitalization - Common Shares and OP Units		$	1,565,827							ATM issuance			375				—				375
Preferred OP Units			7,257		2					Vesting RS and LTIPs			34				30				64
Total Equity Capitalization			1,573,084			54%		55%		OP Conversions			16				(16	)			—
										Other			(4	)			—				(4	)
Debt Capitalization										Balance at 6/30/2022			94,929				5,316				100,245				94,945				94,120				100,281				99,898
Consolidated debt			1,822,801
Adjustment to reflect pro-rata share of debt			(504,650	)
Total Debt Capitalization			1,318,151			46%		45%
Total Market Capitalization		$	2,891,235			100%		100%

__________

 

 

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	Consolidated Income Statement
Supplemental Report – June 30, 2022	(in thousands)

 

		June 30, 2022 1
CONSOLIDATED INCOME STATEMENT		Quarter				Year to Date
Revenues
Rental income		$	80,559			$	160,026
Other			3,700				5,740
Total revenues			84,259				165,766
Operating expenses
Depreciation and amortization			34,971				68,684
General and administrative			10,661				22,598
Real estate taxes			11,628				22,908
Property operating			13,567				26,917
Total operating expenses			70,827				141,107
Gain on disposition of properties			12,216				41,031
Operating income			25,648				65,690
Equity in earnings of unconsolidated affiliates			1,280				4,410
Interest and other income			2,961				5,896
Realized and unrealized holding losses on investments and other			(26,283	)			(10,553	)
Interest expense			(19,222	)			(37,147	)
(Loss) income from continuing operations before income taxes			(15,616	)			28,296
Income tax provision			(209	)			(24	)
Net (loss) income			(15,825	)			28,272
Net loss (income) attributable to noncontrolling interests			15,451				(11,808	)
Net (loss) income attributable to Acadia		$	(374	)		$	16,464

 

 

 

 

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	Income Statement - Detail
Supplemental Report – June 30, 2022	(in thousands)

 

		June 30, 2022 1
CORE PORTFOLIO AND FUND INCOME		Quarter				Year to Date
PROPERTY REVENUES
Minimum rents		$	61,650			$	120,389
Percentage rents			720				1,452
Expense reimbursements - CAM			6,863				13,668
Expense reimbursements - Taxes			8,620				16,435
Other property income			577				1,243
Total Property Revenues			78,430				153,187
PROPERTY EXPENSES
Property operating - CAM			10,107				21,007
Other property operating (Non-CAM)			3,298				5,594
Real estate taxes			11,628				22,908
Total Property Expenses			25,033				49,509
NET OPERATING INCOME - PROPERTIES			53,397				103,678
OTHER INCOME (EXPENSE)
Interest income			2,961				5,896
Straight-line rent income (expense)			1,577				6,004
Above/below-market rent income (expense)			2,655				4,169
Interest expense 2			(18,047	)			(34,655	)
Amortization of finance costs			(1,112	)			(2,367	)
Above/below-market interest income (expense)			26				52
Asset and property management income (expense)			(175	)			(337	)
Other income (expense)			1,450				2,046
Finance lease interest expense			(89	)			(177	)
CORE PORTFOLIO AND FUND INCOME			42,643				84,309
FEE AND OTHER INCOME
Asset and property management fees			194				363
Net promote and other transactional income			—				1,473
Realized and unrealized holding losses on investments and other			(26,383	)			(13,288	)
Transactional fees 3			66				117
Income tax (provision) benefit			(209	)			(24	)
Total Fee and Other Income (Loss)			(26,332	)			(11,359	)
General and Administrative			(10,661	)			(20,576	)
Depreciation and amortization			(34,864	)			(68,487	)
Non-real estate depreciation and amortization			(107	)			(197	)
Gain on change of control and other			—				(859	)
Gain on disposition of properties			12,216				41,031
Income (Loss) before equity in earnings and noncontrolling interests			(17,105	)			23,862
Equity in earnings of unconsolidated affiliates			1,280				4,410
Noncontrolling interests			15,451				(11,808	)
NET (LOSS) INCOME ATTRIBUTABLE TO ACADIA		$	(374	)		$	16,464

 

 

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	Income Statement – Pro Rata Adjustments
Supplemental Report – June 30, 2022	(in thousands)

 

		Quarter Ended June 30, 2022								Year to Date June 30, 2022
CORE PORTFOLIO AND FUND INCOME		Noncontrolling Interest in Consolidated Subsidiaries 4				Company’s Interest in Unconsolidated Subsidiaries 5				Noncontrolling Interest in Consolidated Subsidiaries 5				Company’s Interest in Unconsolidated Subsidiaries 6
PROPERTY REVENUES
Minimum rents		$	(24,716	)		$	11,862			$	(47,853	)		$	21,478
Percentage rents			(179	)			64				(642	)			304
Expense reimbursements - CAM			(3,339	)			1,279				(6,678	)			2,761
Expense reimbursements - Taxes			(2,774	)			2,426				(4,951	)			4,414
Other property income			(250	)			85				(597	)			140
Total Property Revenues			(31,258	)			15,716				(60,721	)			29,097
PROPERTY EXPENSES
Property operating - CAM			(4,794	)			1,274				(9,868	)			2,655
Other property operating (Non-CAM)			(1,030	)			226				(1,657	)			472
Real estate taxes			(4,251	)			2,996				(7,869	)			5,281
Total Property Expenses			(10,075	)			4,496				(19,394	)			8,408
NET OPERATING INCOME - PROPERTIES			(21,183	)			11,220				(41,327	)			20,689
OTHER INCOME (EXPENSE)
Interest income			(5	)			7				(5	)			7
Straight-line rent income (expense)			(1,107	)			450				(3,115	)			738
Above/below-market rent income (expense)			(495	)			1,023				(841	)			1,820
Interest expense 2			9,186				(3,169	)			17,602				(5,833	)
Amortization of finance costs			628				(284	)			1,317				(525	)
Above/below-market interest income (expense)			—				21				—				42
Asset and property management income (expense)			383				(470	)			715				(837	)
Other income (expense)			(476	)			(270	)			(965	)			35
Finance lease interest expense			65				—				129				—
CORE PORTFOLIO AND FUND INCOME			(13,004	)			8,528				(26,490	)			16,136
FEE AND OTHER INCOME
Asset and property management fees			2,512				137				5,153				301
Net promote and other transactional income			—				—				—				—
Realized and unrealized holding losses on investments and other			17,641				—				8,256				—
Transactional fees 3			1,403				241				2,830				339
Income tax (provision) benefit			73				(7	)			125				(10	)
Total Fee and Other Income (Loss)			21,629				371				16,364				630
General and Administrative			410				(179	)			924				(313	)
Depreciation and amortization			15,707				(7,440	)			29,620				(12,043	)
Non-real estate depreciation and amortization			—				—				—				—
Gain on change of control and other			—				—				—				—
Gain (loss) on disposition of properties			(9,255	)			—				(31,192	)			—
Income (Loss) before equity in earnings and noncontrolling interests			15,487				1,280				(10,774	)			4,410
Equity in earnings of unconsolidated affiliates			—				—				—				—
Noncontrolling interests 6			(36	)			—				(1,034	)			—
NET INCOME (LOSS) ATTRIBUTABLE TO ACADIA		$	15,451			$	1,280			$	(11,808	)		$	4,410

 

 

 

 

	7

 

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	Balance Sheet
Supplemental Report – June 30, 2022	(in thousands)

 

ASSETS		Consolidated Balance Sheet				Line Item Details:
Real estate
Land		$	845,022			The components of Real estate under development, at cost are as follows:
Buildings and improvements			3,249,519			Core		$	53,113
Construction in progress			12,494			Fund II			35,970
Right-of-use assets - finance leases			25,086			Fund III			24,898
			4,132,121			Fund IV			89,055
Less: Accumulated depreciation and amortization			(690,945	)		Total		$	203,036
Total			3,441,176
Real estate under development			203,036			Summary of other assets, net:
Operating real estate, net			3,644,212			Deferred charges, net		$	27,312
Notes receivable, net			137,306			Accrued interest receivable			18,859
Investments in and advances to unconsolidated affiliates			333,529			Due from seller			3,036
Lease intangibles, net			119,785			Prepaid expenses			14,960
Other assets, net			84,647			Other receivables			2,165
Right-of-use assets - operating leases, net			39,024			Income taxes receivable			2,244
Cash and cash equivalents			23,921			Corporate assets, net			1,466
Restricted cash			11,023			Deposits			507
Straight-line rents receivable, net			32,330			Derivative financial instruments			14,098
Rents receivable, net			13,107			Total		$	84,647
Total Assets		$	4,438,884
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgage and other notes payable, net		$	1,104,355
Unsecured notes payable, net			613,384			Summary of accounts payable and other liabilities:
Unsecured line of credit			96,487			Lease liability - finance leases, net		$	6,814
Accounts payable and other liabilities			113,325			Accounts payable and accrued expenses			55,999
Lease liability - operating leases, net			37,030			Deferred income			34,119
Dividends and distributions payable			18,398			Tenant security deposits, escrow and other			14,811
Lease intangibles, net			83,769			Derivative financial instruments			1,582
Distributions in excess of income from, and investments in, unconsolidated affiliates			8,918			Total		$	113,325
Total liabilities			2,075,666
Shareholders' Equity
Common shares			95
Additional paid-in capital			1,895,556
Accumulated other comprehensive income (loss)			11,240
Distributions in excess of accumulated earnings			(214,279	)
Total Acadia shareholders’ equity			1,692,612
Noncontrolling interests			670,606
Total equity			2,363,218
Total liabilities and equity		$	4,438,884

 

 

	8

 

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	Balance Sheet – Pro-rata Adjustments7
Supplemental Report – June 30, 2022	(in thousands)

 

 

ASSETS		Noncontrolling Interest in Consolidated Subsidiaries 5				Company’s Interest in Unconsolidated Subsidiaries 6
Real estate
Land		$	(174,013	)		$	74,274
Buildings and improvements			(915,202	)			294,003
Construction in progress			(4,197	)			494
Right-of-use assets - finance leases			(3,512	)			22,518
			(1,096,924	)			391,289
Less: Accumulated depreciation and amortization			126,969				(65,451	)
Total			(969,955	)			325,838
Real estate under development			(109,564	)			9,686
Operating real estate, net			(1,079,519	)			335,524
Notes receivable, net			—				—
Investments in and advances to unconsolidated affiliates			(143,914	)			(140,105	)
Lease intangibles, net			(40,183	)			8,835
Other assets, net			5,421				6,312
Right-of-use assets - operating leases, net			(2,182	)			—
Cash and cash equivalents			(13,097	)			7,230
Restricted cash			(8,000	)			4,966
Straight-line rents receivable, net			(7,802	)			4,894
Rents receivable, net			(4,746	)			1,776
Total Assets		$	(1,294,022	)		$	229,432
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgage and other notes payable, net		$	(673,590	)		$	197,327
Unsecured notes payable, net			(26,637	)			—
Unsecured line of credit			—				—
Accounts payable and other liabilities			(33,419	)			27,042
Lease intangibles, net			(26,664	)			6,303
Lease liability - operating leases, net			(2,287	)			4
Dividends and distributions payable			—				—
Lease liability - finance leases			(4,224	)			7,674
Distributions in excess of income from, and investments in, unconsolidated affiliates			—				(8,918	)
Total liabilities			(766,821	)			229,432
Shareholders' Equity
Common shares			—				—
Additional paid-in capital			—				—
Accumulated other comprehensive income (loss)			—				—
Distributions in excess of accumulated earnings			—				—
Total Acadia shareholders’ equity			—				—
Noncontrolling interests			(527,201	)			—
Total equity			(527,201	)			—
Total liabilities and equity		$	(1,294,022	)		$	229,432

 

 

 

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	Balance Sheet – Pro-rata Adjustments7
Supplemental Report – June 30, 2022	(in thousands)

 

__________

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

 

 

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	Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”)1
Supplemental Report – June 30, 2022	(in thousands)

 

		Quarter Ended								Year to Date				Quarter Ended				Year to Date
		March 31, 2022				June 30, 2022				June 30, 2022				June 30, 2021				June 30, 2021
Funds from operations ("FFO"):														(As Restated)				(As Restated)
Net Income (Loss)		$	16,838			$	(374	)		$	16,464			$	3,711			$	8,528
Depreciation of real estate and amortization of leasing costs (net of noncontrolling interest share)			24,313				26,597				50,910				23,077				46,884
(Gain) loss on disposition on real estate properties (net of noncontrolling interest share)			(6,876	)			(2,961	)			(9,837	)			933				(4,163	)
Income (loss) attributable to noncontrolling interests' share in Operating Partnership			1,121				151				1,272				398				868
FFO to Common Shareholders and Common OP Unit holders		$	35,396			$	23,413			$	58,809			$	28,119			$	52,117
Add back: acquisition costs, net of bargain purchase gain			859				—				859				—
Less: Unrealized holding (gain) loss on investment in Albertsons and other (net of noncontrolling interest share)			(3,570	)			8,881				5,311				(487	)			(1,886	)
FFO before Special Items		$	32,685			$	32,294			$	64,979			$	27,632			$	50,231
Adjusted Funds from operations ("AFFO"):
FFO		$	35,396			$	23,413			$	58,809			$	28,119			$	52,117
Unrealized (gains) losses			(3,570	)			8,881				5,311				(487	)			(1,886	)
Straight-line rent, net			(2,707	)			(920	)			(3,627	)			(1,011	)			(1,413	)
Above/below-market rent			(1,965	)			(3,183	)			(5,148	)			(1,917	)			(3,696	)
Amortization of finance costs			807				768				1,575				769				1,544
Above/below-market interest			(47	)			(47	)			(94	)			(47	)			(94	)
Non-real estate depreciation			90				107				197				59				116
Stock-based compensation			3,887				2,255				6,142				2,237				6,098
Leasing commissions			(1,053	)			(1,057	)			(2,110	)			(905	)			(1,003	)
Tenant improvements			(3,403	)			(2,250	)			(5,653	)			(2,666	)			(3,956	)
Maintenance capital expenditures			(638	)			(2,049	)			(2,687	)			(398	)			(683	)
AFFO to Common Shareholders and Common OP Unit holders		$	26,797			$	25,918			$	52,715			$	23,753			$	47,144
Total weighted-average diluted shares and OP Units			99,103				100,281				99,898				92,627				92,254
Diluted FFO per Common share and OP Unit:
FFO		$	0.36			$	0.23			$	0.59			$	0.30			$	0.56
FFO before Special Items		$	0.33			$	0.32			$	0.65			$	0.30			$	0.54

 

 

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	EBITDA1
Supplemental Report – June 30, 2022	(in thousands)

 

		Quarter Ended June 30, 2022												Year to Date June 30, 2022												Quarter Ended June 30, 2021
		Core												Core												Core
		Portfolio				Funds				Total				Portfolio				Funds				Total				Portfolio				Funds				Total
EBITDA:																										(As Restated)				(As Restated)				(As Restated)
Net Income (Loss) Attributable to Acadia		$	(1,623	)		$	1,249			$	(374	)		$	8,318			$	8,146			$	16,464			$	6,508			$	(1,691	)		$	4,817
Adjustments:
Depreciation and amortization			22,092				4,612				26,704				41,709				9,398				51,107				19,305				3,831				23,136
Interest expense			9,325				2,705				12,030				17,712				5,174				22,886				8,173				2,391				10,564
Amortization of finance costs			605				163				768				1,210				365				1,575				569				200				769
Above/below-market interest			(47	)			—				(47	)			(94	)			—				(94	)			(47	)			—				(47	)
Gain on disposition of properties			—				(2,961	)			(2,961	)			—				(9,839	)			(9,839	)			—				(1,498	)			(1,498	)
Unrealized holding losses (gains) on investment in Albertsons and other			8,881				—				8,881				5,311				—				5,311				(688	)			201				(487	)
Provision (benefit) for income taxes			122				21				143				(127	)			36				(91	)			133				18				151
Noncontrolling interest - OP			36				—				36				1,034				—				1,034				275				—				275
EBITDA		$	39,391			$	5,789			$	45,180			$	75,073			$	13,280			$	88,353			$	34,228			$	3,452			$	37,680
Adjusted EBITDA:
EBITDA		$	39,391			$	5,789			$	45,180			$	75,073			$	13,280			$	88,353			$	34,228			$	3,452			$	37,680
Stock based compensation			2,255				—				2,255				6,142				—				6,142				2,237				—				2,237
		$	41,646			$	5,789			$	47,435			$	81,215			$	13,280			$	94,495			$	36,465			$	3,452			$	39,917

 

__________

Notes to Funds from Operations and EBITDA:

 

 

 

 

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	Core Portfolio – Same Property Performance 1
Supplemental Report – June 30, 2022	(in thousands)

 

		Quarter Ended								Change				Year to Date								Change
		June 30, 2022				June 30, 2021				Favorable/ (Unfavorable)				June 30, 2022				June 30, 2021				Favorable/ (Unfavorable)
Summary
Minimum rents		$	33,821			$	33,019				2.4	%		$	66,998			$	63,208				6.0	%
Expense reimbursements			9,278				9,366				(0.9	)%			18,743				18,679				0.3	%
Other property income			697				334				108.7	%			1,297				720				80.1	%
Total Revenue			43,796				42,719				2.5	%			87,038				82,607				5.4	%
Expenses
Property operating - CAM & Real estate taxes			11,885				12,348				3.7	%			24,523				24,297				(0.9	)%
Other property operating (Non-CAM)			966				838				(15.3	)%			1,730				1,569				(10.3	)%
Total Expenses			12,851				13,186				2.5	%			26,253				25,866				(1.5	)%
Same Property NOI - Core properties		$	30,945			$	29,533				4.8	%		$	60,785			$	56,741				7.1	%
Reconciliation of Same Property NOI to Core NOI
NOI of Properties excluded from Same Property NOI			6,871				3,512								11,227				6,113
Core NOI		$	37,816			$	33,045							$	72,012			$	62,854
Other same property information
Physical Occupancy at the end of the period			90.4	%			88.6	%
Leased Occupancy at the end of the period			94.1	%			91.9	%

__________

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

 

 

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	Fee Income by Fund
Supplemental Report – June 30, 2022	(in thousands)

 

		Fund II				Fund III				Fund IV				Fund V				Other				Total
Year to Date June 30, 2022
Asset and property management fees		$	561			$	45			$	2,022			$	2,883			$	306			$	5,817
Transactional fees			285				285				735				1,920				61				3,286
Total fees		$	846			$	330			$	2,757			$	4,803			$	367			$	9,103
Quarter Ended June 30, 2022
Asset and property management fees		$	275			$	13			$	967			$	1,420			$	168			$	2,843
Transactional fees			164				68				384				1,061				33				1,710
Total fees		$	439			$	81			$	1,351			$	2,481			$	201			$	4,553
Quarter Ended March 31, 2022
Asset and property management fees		$	286			$	32			$	1,055			$	1,463			$	138			$	2,974
Transactional fees			121				217				351				859				28				1,576
Total fees		$	407			$	249			$	1,406			$	2,322			$	166			$	4,550

 

 

 

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	Structured Financing Portfolio
Supplemental Report – June 30, 2022	(in thousands)

 

		March 31, 2022												Quarter Ended June 30, 2022																				Stated				Effective
		Principal				Accrued				Ending								Repayments/				Current				Accrued				Ending				Interest				Interest				Maturity
Investment		Balance				Interest				Balance				Issuances 1				Conversions				Principal				Interest				Balance				Rate				Rate				Dates
First mortgage notes 2,4		$	89,331			$	5,293			$	94,624			$	—			$	(16,000	)		$	73,331			$	4,085			$	77,416				5.99	%			6.40	%		Apr-20 to Sept-24
Other notes4			65,000				13,077				78,077				—				—				65,000				14,698				79,698				8.52	%			8.52	%		Jan-23 to Dec-27
Total Core notes receivable		$	154,331			$	18,370			$	172,701			$	—			$	(16,000	)		$	138,331			$	18,783			$	157,114				7.18	%			7.40	%
__________
Reconciliation of Notes Receivable to the Consolidated Balance Sheet (Pro Rata):
Total Notes Receivable per above																						$	138,331
Fund Notes Receivable																							—
Allowance for credit loss																							(1,025	)
Total Pro-rata Notes Receivable																						$	137,306

 

________

 

 

 

 

 

 

 

 

 

 

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	Transactional Activity
Supplemental Report – June 30, 2022	(in thousands)

 

PROPERTY ACQUISITIONS AND DISPOSITIONS
Property Name		Location		Date of Transaction		Transaction Amount				Ownership % 1				Fund Share				Acadia Share
ACQUISITIONS 2
Core:
121 Spring Street		New York, NY		January 12, 2022		$	39,637				100.00	%		$	—			$	39,637
Williamsburg Collection 3		Brooklyn, NY		February 18, 2022			97,750				100.00	%			—				97,750
8833 Beverly Boulevard		Hollywood, CA		March 2, 2022			24,117				100.00	%			—				24,117
Henderson Portfolio 4		Dallas, TX		April 18, 2022			85,192				100.00	%			—				85,192
							246,696								—				246,696
Fund V:
Wood Ridge Plaza		Houston, TX		March 21, 2022			49,317				90.00	%			44,385				8,921
La Frontera		Round Rock, TX		March 30, 2022			81,358				90.00	%			73,222				14,718
							130,675								117,607				23,639
						$	377,371							$	117,607			$	270,335
DISPOSITIONS
Fund III:
Cortlandt Crossing		Mohegan Lake, NY		February 9, 2022		$	65,533				100.00	%			65,533			$	16,082
Self Storage Management				March 9, 2022			6,000				50.00	%			—				1,500
Fund IV:
Mayfair		Philadelphia, PA		January 26, 2022			23,700				100.00	%			23,700				5,479
Dauphin		Harrisburg, PA		March 4, 2022			21,650				100.00	%			21,650				5,005
Lincoln Place		Fairview Heights, IL		May 25, 2022			40,670				100.00	%			40,670				9,403
Fund V:
New Town Center (Land Parcel)		Canton, MI		February 1, 2022			2,231				89.43	%			1,995				401
						$	159,784							$	153,548			$	37,870
STRUCTURED FINANCING ACTIVITY
Note Description		Transaction Type		Date of Transaction		Transaction Amount				Ownership % 1				Fund Share				Acadia Share
Core:
White Oak		Repayment		May 26, 2022		$	(16,000	)			100.00	%		$	—			$	(16,000	)
							(16,000	)							—				(16,000	)
Fund III:
640 Broadway Note Receivable		Foreclosure		January 26, 2022			(5,307	)			100.00	%			(5,307	)			(1,302	)
						$	(21,307	)						$	(5,307	)		$	(17,302	)

 

 

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	16

 

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	17

 

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	2022 Revised Guidance 1
Supplemental Report – June 30, 2022	(in millions)

 

		2022 Annual Guidance
		Initial		Updated Q1		Revised Q2
Net earnings per share attributable to Common Shareholders		$0.19 to $0.32		$0.25 to $0.37		$0.27 to $0.36
Depreciation of real estate and amortization of leasing costs (net of noncontrolling interests' share)		1.01 to 1.04		1.01 to 1.04		1.01 to 1.04
Gain on disposition of properties (net of noncontrolling interests' share)		(0.07)		(0.07)		(0.15)
Noncontrolling interest in Operating Partnership		0.02		0.02		0.02
NAREIT Funds from operations per share attributable to Common Shareholders and Common OP Unit holders		$1.15 to $1.31		$1.21 to $1.36		$1.15 to $1.27
Net Promote and other Core and Fund profits		(0.06) to (0.10)		(0.06) to (0.11)		(0.06) to (0.12)
Less: Albertsons unrealized holding losses (gains) (net of noncontrolling interest share) for the six months ended June 30, 2022		—		(0.04)		0.05
Funds from operations Before Special Items, excluding Net Promote and other Core and Fund profits		$1.09 to $1.21		$1.11 to $1.21		$1.14 to $1.20
Net Promote and other Core and Fund profits2		0.06 to 0.10		0.06 to 0.11		0.06 to 0.12
Funds from operations Before Special Items per share attributable to Common Shareholders and Common OP Unit holders		$1.15 to $1.31		$1.17 to $1.32		$1.20 to $1.32

 

 

 

 

 

 

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	Net Asset Valuation Information
Supplemental Report – June 30, 2022	(in thousands)

 

		CORE				FUND II 2				FUND III				FUND IV				FUND V
Ownership Percentage		N/A					40.00	%			24.54	%			23.12	%			20.10	%
Current Quarter NOI
Net Operating Income 1, 2		$	37,816			N/A				$	102			$	5,154			$	19,150
Less:
Net operating (income) loss from properties sold or under contract			—			N/A					160				(249	)			—
Net operating (income) loss from pre-stabilized assets, development and redevelopment projects 3, 4			(2,795	)		N/A					(262	)			(472	)			—
Net Operating Income of stabilized assets		$	35,021			N/A				$	—			$	4,433			$	19,150
Costs to Date (Pro Rata)
Pre-stabilized assets 3		$	—			N/A				$	13,526			$	40,994			$	—
Development and redevelopment projects 4			194,568			N/A					4,578				26,210				—
Total Costs to Date		$	194,568			N/A				$	18,104			$	67,204			$	—
Debt (Pro Rata)		$	1,014,281			$	112,578			$	8,827			$	60,029			$	122,436

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	19

 

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	Selected Financial Ratios
Supplemental Report – June 30, 2022	(in thousands)

 

		Quarter Ended June 30,								Year to Date June 30,										Quarter Ended
COVERAGE RATIOS 1		2022				2021				2022				2021				LEVERAGE RATIOS		June 30, 2022				March 31, 2022
Fixed-Charge Coverage Ratios						(As Restated)								(As Restated)				Debt/Market Capitalization Ratios
EBITDA 2 divided by:		$	39,391			$	34,228			$	75,073			$	63,600			Debt + Preferred Equity (Preferred OP Units)		$	1,325,408			$	1,226,278
Interest expense			9,325				8,173				17,712				16,222			Total Market Capitalization			2,891,235				3,389,161
Principal Amortization			960				1,060				1,996				2,081			Debt + Preferred Equity/
Preferred Dividends 3			123				123				246				246			Total Market Capitalization			46	%			36	%
Fixed-Charge Coverage Ratio - Core Portfolio			3.8	x			3.7	x			3.8	x			3.4	x
EBITDA divided by:		$	45,180			$	37,680			$	88,353			$	71,476			Debt 6		$	1,307,354			$	1,205,994
Interest expense			12,030				10,564				22,886				20,980			Total Market Capitalization			2,891,235				3,389,161
Principal Amortization			1,413				1,552				2,674				2,831			Net Debt + Preferred Equity/
Preferred Dividends			123				123				246				246			Total Market Capitalization			45	%			36	%
Fixed-Charge Coverage Ratio - Core Portfolio and Funds			3.3	x			3.1	x			3.4	x			3.0	x		Debt/EBITDA Ratios
																		Core:
Payout Ratios																		Debt		$	1,014,281			$	938,161
																		Net debt 5			1,002,057				925,946
Dividends declared (per share/OP Unit)		$	0.18			$	0.15			$	0.36			$	0.30			EBITDA			157,564				146,172
																		Adjusted EBITDA			166,584				155,570
Dividends (Shares) & Distributions (OP Units) declared		$	18,373			$	14,438			$	36,668			$	28,431			Debt/EBITDA - Core Portfolio			6.4	x			6.4	x
FFO			23,413				28,119				58,809				52,117			Debt/Adjusted EBITDA - Core Portfolio			6.1	x			6.0	x
FFO Payout Ratio 8			78	%			51	%			62	%			55	%		Net Debt/EBITDA - Core Portfolio			6.4	x			6.3	x
																		Net Debt/ Adjusted EBITDA - Core Portfolio			6.0	x			6.0	x
AFFO 7			25,918				23,753				52,715				47,144			Core and Funds:
AFFO Payout Ratio			71	%			61	%			70	%			60	%		Debt 4		$	1,318,151			$	1,216,210
																		Net debt 6			1,300,097				1,195,926
FFO Before Special Items			32,294				27,632				64,979				50,231			EBITDA			182,193				171,717
FFO Before Special Items Payout Ratio			57	%			52	%			56	%			57	%		Adjusted EBITDA			191,213				181,115
																		Debt/EBITDA - Core and Funds			7.2	x			7.1	x
																		Debt/Adjusted EBITDA - Core and Funds			6.9	x			6.7	x
																		Net Debt/EBITDA - Core and Funds			7.1	x			7.0	x
																		Net Debt/ Adjusted EBITDA - Core and Funds			6.8	x			6.6	x

 

 

 

 

	20

 

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	Selected Financial Ratios
Supplemental Report – June 30, 2022	(in thousands)

__________

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. 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. Prior period results are adjusted to reflect the impact of the restatement (see Notes to FFO and EBITDA pages for more information).

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. Excludes capital lease obligations.

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. See Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”) for a reconciliation of AFFO to net income attributable to Acadia.

 

		EBITDA								ADJUSTED EBITDA
		Quarter Ended				Year Ended				Quarter Ended				Year Ended
Reconciliation of EBITDA to Annualized EBITDA		June 30, 2022				December 31, 2021				June 30, 2022				December 31, 2021
Core EBITDA as reported		$	39,391			$	127,360			$	39,391			$	127,360
Add back: Stock-based compensation, net of employee equity elections			—				—				2,255				10,583
Subtotal			39,391				127,360				41,646				137,943
Annualized Core EBITDA			157,564				127,360				166,584				137,943
Annualized Core EBITDA			157,564				127,360				166,584				137,943
Funds EBITDA as reported			5,789				18,829				5,789				18,829
Subtotal			5,789				18,829				5,789				18,829
Annualized Fund EBITDA			23,156				18,829				23,156				18,829
Add back: Promote YTD			1,473				—				1,473				—
Annualized Fund EBITDA			24,629				18,829				24,629				18,829
Annualized EBITDA Core and Funds		$	182,193			$	146,189			$	191,213			$	156,772

 

 

 

 

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	Portfolio Debt – Summary
Supplemental Report – June 30, 2022	(in thousands)

 

		Acadia Pro-Rata Share of Debt 2
		Core Portfolio												Funds												Total																Reconciliation to Consolidated Debt as Reported
Unsecured Debt		Principal Balance				Interest Rate				WA Years to Maturity 6				Principal Balance				Interest Rate				WA Years to Maturity 6				Principal Balance				%				Interest Rate				WA Years to Maturity 6				Add: Noncontrolling Interest Share of Debt 3				Less: Pro-rata Share of Unconsolidated Debt 4				Acadia Consolidated Debt as Reported
Fixed-Rate Debt 1		$	591,295				4.2	%			4.7			$	—				—				—			$	591,295				45	%			4.2	%			4.7			$	—			$	—			$	591,295
Variable-Rate Debt 5			80,192				2.7	%			3.0				16,664				3.4	%			0.3				96,856				7	%			2.8	%			2.6				26,637				—				123,493
																															52	%
Mortgage and Other Notes Payable
Fixed-Rate Debt 1			309,957				4.1	%			4.3				89,233				3.6	%			1.8				399,190				30	%			4.0	%			3.7				311,566				(135,015	)			575,741
Variable-Rate Debt 5			32,837				2.9	%			1.1				197,973				4.8	%			0.8				230,810				18	%			4.6	%			0.9				364,581				(63,119	)			532,272
																															48	%
Total		$	1,014,281				4.0	%			4.3			$	303,870				4.4	%			1.1			$	1,318,151				100	%			4.1	%			3.6			$	702,784			$	(198,134	)			1,822,801
Unamortized premium																											670																								394
Net unamortized loan costs																											(7,495	)																							(8,969	)
Total																										$	1,311,326																							$	1,814,226

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	22

 

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	Portfolio Debt - Detail
Supplemental Report – June 30, 2022	(in thousands)

 

 

 

 

 

				Principal Balance at				Acadia's Pro-rata Share								Interest				Extension
Property				June 30, 2022				Percent				Amount				Rate		Maturity		Options
CORE PORTFOLIO
Fixed-Rate Debt
163 Highland Avenue				$	7,847				100.00	%			7,847			4.66%		02/01/24		None
Crossroads Shopping Center					61,585				49.00	%			30,177			3.94%		10/06/24		None
555 9th Street					60,000				100.00	%			60,000			3.99%		01/01/25		None
840 N. Michigan					73,500				88.43	%			64,996			4.36%		02/10/25		None
Georgetown Portfolio (2008 Investment)					15,191				50.00	%			7,596			4.72%		12/10/27		None
State & Washington					22,373				100.00	%			22,373			4.40%		09/05/28		None
239 Greenwich Avenue					25,441				75.00	%			19,081			3.88%		01/10/29		None
North & Kingsbury					11,114				100.00	%			11,114			4.01%		11/05/29		None
151 North State Street					12,745				100.00	%			12,745			4.03%		12/01/29		None
Concord & Milwaukee					2,439				100.00	%			2,439			4.40%		06/01/30		None
California & Armitage					2,291				100.00	%			2,291			5.89%		04/15/35		None
Unsecured interest rate swaps 1					591,295				100.00	%			591,295			4.16%		Various
Secured interest rate swaps 1					78,497				88.28	%			69,298			3.80%		Various
Sub-Total Fixed-Rate Debt					964,318								901,252			4.14%
Secured Variable-Rate Debt
Gotham Plaza					18,037				49.00	%			8,838			LIBOR+160		06/10/23		None
Georgetown Portfolio (2016 Investment)					160,000				20.00	%			32,000			LIBOR+170		08/01/23		None
3104 M Street 2					4,186				20.00	%			837			Prime+0		01/01/24		None
330-340 River Street					10,460				100.00	%			10,460			LIBOR+170		06/01/26		None
Sullivan Center					50,000				100.00	%			50,000			LIBOR+150		11/16/28		None
Secured interest rate swaps 1					(78,497	)			88.28	%			(69,298	)		3.80%		Various
Unsecured Variable-Rate Debt
Unsecured Line of Credit 3					96,487				100.00	%			96,487			LIBOR+140		06/29/25		2 x 6 mos.
Unsecured Term Loan					400,000				100.00	%			400,000			LIBOR+155		06/29/26		None
Unsecured $175 Million Term Loan					175,000				100.00	%			175,000			SOFR+150		04/06/27		None
Unsecured interest rate swaps 1					(591,295	)			100.00	%			(591,295	)		4.16%		Various
Sub-Total Variable-Rate Debt					244,378								113,029			LIBOR+161
Total Debt - Core Portfolio				$	1,208,696							$	1,014,281			3.98%
Funds
Fixed-Rate Debt
Canton Marketplace		Fund V		$	31,801				20.10	%			6,392			3.35%		05/01/23		None
2207 Fillmore Street 4		Fund IV			1,120				20.80	%			233			4.50%		10/31/25		None
650 Bald Hill Road 4		Fund IV			16,000				20.81	%			3,330			3.75%		06/01/26		None
Interest rate swaps 1		Funds II, IV & V			447,908				17.70	%			79,278			3.59%		Various
Sub-Total Fixed-Rate Debt					496,829								89,233			3.58%
Variable-Rate Debt
640 Broadway 4		Fund III			35,970				24.54	%			8,827			LIBOR+310		07/09/22		1 x 12 mos.
Acadia Strategic Opportunity IV LLC 5		Fund IV			42,200				23.12	%			9,757			SOFR+256		08/29/22		None
City Point 4		Fund II			200,000				37.66	%			75,314			Prime+200		08/11/22		None
City Point 5		Fund II			16,667				37.66	%			6,276			LIBOR+275		08/11/22		None
17 E. 71st Street		Fund IV			8,818				23.12	%			2,039			LIBOR+300		09/09/22		None
Acadia Strategic Opportunity Fund II, LLC		Fund II			40,000				40.00	%			16,000			LIBOR+225		09/20/22		None

 

 

	23

 

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	Portfolio Debt - Detail
Supplemental Report – June 30, 2022	(in thousands)

 

 

 

 

Broughton Street Portfolio 5		Fund IV			25,601				23.12	%			5,919			LIBOR+300		10/31/22		None
Restaurants at Fort Point		Fund IV			5,864				23.12	%			1,356			LIBOR+235		11/25/22		1 x 12 mos.
Promenade at Manassas 4		Fund IV			27,326				22.78	%			6,225			LIBOR+175		12/05/22		2 x 12 mos.
717 N. Michigan Avenue		Fund IV			52,000				23.12	%			12,022			LIBOR+310		12/09/22		1 x 12 mos.
Acadia Strategic Opportunity IV LLC		Fund IV			—				23.12	%			—			SOFR+201		12/29/22		None
Elk Grove Commons		Fund V			41,249				20.10	%			8,291			LIBOR+150		01/01/23		1 x 12 mos.
New Towne Center		Fund V			14,941				20.10	%			3,003			LIBOR+220		02/01/23		None
Wake Forest Crossing		Fund IV			20,703				23.12	%			4,787			SOFR+175		02/14/23		None
Eden Square 4		Fund IV			22,583				22.78	%			5,144			SOFR+235		03/01/23		None
City Point Phase III 4		Fund II			39,802				37.66	%			14,988			LIBOR+263		03/01/23		1 x 12 mos.
Acadia Strategic Opportunity Fund V LLC		Fund V			3,301				20.10	%			664			SOFR+187		05/01/23		None
Riverdale 4		Fund V			24,361				17.97	%			4,379			LIBOR+170		05/28/23		1 x 12 mos.
Fairlane Green		Fund V			33,183				20.10	%			6,670			LIBOR+190		06/05/23		None
Trussville Promenade		Fund V			29,012				20.10	%			5,831			LIBOR+185		06/15/23		None
146 Geary Street		Fund IV			19,338				23.12	%			4,471			LIBOR+365		07/15/23		None
Hiram Pavilion		Fund V			28,775				20.10	%			5,784			LIBOR+190		03/05/24		None
Hickory Ridge		Fund V			28,741				20.10	%			5,777			LIBOR+190		10/05/24		None
Tri-City Plaza 4		Fund V			38,670				18.09	%			6,995			LIBOR+190		10/18/24		1 x 12 mos.
Landstown Commons		Fund V			60,900				20.10	%			12,241			LIBOR+170		10/24/24		None
Lincoln Commons		Fund V			38,820				20.10	%			7,803			LIBOR+170		10/24/24		None
Palm Coast Landing		Fund V			26,500				20.10	%			5,327			LIBOR+175		11/01/24		None
Frederick Crossing 4		Fund V			24,290				18.09	%			4,394			LIBOR+175		12/02/24		1 x 12 mos.
Plaza Santa Fe		Fund V			22,893				20.10	%			4,601			LIBOR+190		12/20/24		None
Paramus Plaza 4		Fund IV			28,718				11.56	%			3,320			SOFR+225		12/28/24		2 x 12 mos.
Frederick County Square 4		Fund V			22,185				18.09	%			4,013			LIBOR+240		01/01/25		1 x 12 mos.
Wood Ridge Plaza		Fund V			32,338				18.09	%			5,850			Prime+013		03/21/25		2 x 12 mos.
Midstate Mall		Fund V			42,400				20.10	%			8,522			SOFR+250		04/28/25		2 x 12 mos.
1964 Union Street 4		Fund IV			1,397				20.80	%			291			LIBOR+225		10/01/25		None
2208-2216 Fillmore Street 4		Fund IV			5,458				20.80	%			1,135			LIBOR+225		06/01/26		None
Monroe Marketplace		Fund V			29,150				20.10	%			5,859			SOFR+265		11/12/26		None
La Frontera Village		Fund V			55,500				18.09	%			10,040			SOFR+250		06/10/27		2 x 12 mos.
Interest rate swaps 1		Funds II, IV & V			(447,908	)			17.70	%			(79,278	)		3.59%		Various
Sub-Total Variable-Rate Debt					741,746								214,637			LIBOR+360
Total Debt - Funds					1,238,575								303,870			4.38%
Total Debt - Core Portfolio and Funds				$	2,447,271							$	1,318,151			4.07%

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	24

 

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	Future Debt Maturities 1
Supplemental Report – June 30, 2022	(in thousands)

 

Core Portfolio		Contractual Debt Maturities												Acadia's Pro-Rata Share												Weighted Average Effective Interest Rate
																												Fixed-
		Scheduled												Scheduled												Total		Rate		Variable-
Year		Amortization				Maturities				Total				Amortization				Maturities				Total				Debt		Debt		Rate Debt
2022 (Remainder)		$	2,636			$	—			$	2,636			$	1,932			$	—			$	1,932			n/a		n/a		n/a
2023			5,019				177,496				182,515				3,781				40,573				44,354			4.08%		4.08%		n/a
2024			4,242				69,877				74,119				3,294				36,766				40,060			4.11%		4.09%		5.25%
2025			3,264				229,987				233,251				2,862				221,483				224,345			4.14%		4.14%		n/a
2026			3,219				409,273				412,492				2,799				409,273				412,072			4.08%		4.08%		n/a
Thereafter			8,174				295,509				303,683				7,594				283,924				291,518			4.14%		4.14%		n/a
Total		$	26,554			$	1,182,142			$	1,208,696			$	22,262			$	992,019			$	1,014,281
Funds		Contractual Debt Maturities												Acadia's Pro-Rata Share												Weighted Average Effective Interest Rate
																												Fixed-
		Scheduled												Scheduled												Total		Rate		Variable-
Year		Amortization				Maturities				Total				Amortization				Maturities				Total				Debt		Debt		Rate Debt
2022 (Remainder)		$	3,651			$	454,146			$	457,797			$	746			$	143,663			$	144,409			4.85%		n/a		4.85%
2023			6,328				278,080				284,408				1,223				64,158				65,381			3.80%		3.65%		4.03%
2024			4,877				288,275				293,152				921				54,351				55,272			3.22%		3.20%		3.45%
2025			746				98,394				99,140				152				18,716				18,868			4.77%		4.75%		4.81%
2026			256				48,322				48,578				52				9,848				9,900			3.77%		3.75%		3.78%
Thereafter			—				55,500				55,500				—				10,040				10,040			3.70%		n/a		3.70%
Total		$	15,858			$	1,222,717			$	1,238,575			$	3,094			$	300,776			$	303,870

__________

 

 

 

 

	25

 

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	Future Debt Maturities – As Extended 1
Supplemental Report – June 30, 2022	(in thousands)

 

Core Portfolio		Extended Debt Maturities 1												Acadia's Pro-Rata Share												Weighted Average Interest Rate
																												Fixed-
		Scheduled												Scheduled												Total		Rate		Variable-
Year		Amortization				Maturities				Total				Amortization				Maturities				Total				Debt		Debt		Rate Debt
2022 (Remainder)		$	2,636			$	—			$	2,636			$	1,932			$	—			$	1,932			n/a		n/a		n/a
2023			5,019				177,496				182,515				3,781				40,573				44,354			4.08%		4.08%		n/a
2024			4,242				69,877				74,119				3,294				36,776				40,070			4.11%		4.09%		5.25%
2025			3,264				133,500				136,764				2,862				124,996				127,858			4.18%		4.18%		n/a
2026			3,218				505,761				508,979				2,799				505,761				508,560			4.08%		4.08%		n/a
Thereafter			8,174				295,509				303,683				7,583				283,924				291,507			4.14%		4.14%		n/a
Total		$	26,553			$	1,182,143			$	1,208,696			$	22,251			$	992,030			$	1,014,281
Funds		Extended Debt Maturities 1												Acadia's Pro-Rata Share												Weighted Average Interest Rate
																												Fixed-
		Scheduled												Scheduled												Total		Rate		Variable-
Year		Amortization				Maturities				Total				Amortization				Maturities				Total				Debt		Debt		Rate Debt
2022 (Remainder)		$	45,821			$	290,944			$	336,765			$	10,496			$	105,510			$	116,006			5.13%		n/a		5.13%
2023			6,327				290,660				296,987				1,223				64,291				65,514			4.07%		3.89%		4.19%
2024			4,876				308,022				312,898				921				68,382				69,303			3.54%		3.39%		4.06%
2025			746				63,365				64,111				152				11,527				11,679			3.14%		3.13%		3.37%
2026			257				98,219				98,476				54				17,065				17,119			3.77%		3.89%		3.77%
Thereafter			—				129,338				129,338				—				24,249				24,249			4.47%		5.11%		4.13%
Total		$	58,027			$	1,180,548			$	1,238,575			$	12,846			$	291,024			$	303,870

 

 

 

	26

 

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	Core Portfolio Retail Properties - Detail
Supplemental Report – June 30, 2022

 

 

 

 

 

				Year		Acadia's				Gross Leasable Area (GLA)																In Place Occupancy																Leased Occupancy				Annualized Base Rent				ABR
Property		Key Tenants		Acquired		Interest				Street				Anchors				Shops				Total				Street				Anchors				Shops				Total				Total				(ABR)				PSF
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	%		$	3,350,038			$	184.67
840 N. Michigan Avenue		H & M, Verizon    Wireless		2014			88.4	%			87,135				—				—				87,135				100.0	%			—	%			—	%			100.0	%			100.0	%			8,521,951				97.80
Rush and Walton Streets    Collection (6 properties)		Lululemon, BHLDN,    Reformation,    Sprinkles		2011  2012			100.0	%			40,384				—				—				40,384				88.2	%			—	%			—	%			88.2	%			88.2	%			6,752,488				189.64
Clark Street and W. Diversey    Collection (4 properties)		Starbucks;TJ Maxx; J Crew Factory		2011 2012			100.0	%			53,277				—				—				53,277				68.3	%			—	%			—	%			68.3	%			76.1	%			1,448,638				39.83
Halsted and Armitage    Collection (13 properties)		Serena and Lily,    Bonobos, Allbirds    Warby Parker,    Marine Layer,    Kiehl's		2011 2012 2019 2020			100.0	%			51,778				—				—				51,778				93.0	%			—	%			—	%			93.0	%			100.0	%			2,364,353				49.12
North Lincoln Park Chicago    Collection (6 properties)		Champion,    Carhartt		2011 2014			100.0	%			22,125				—				27,796				49,921				27.7	%			—	%			100.0	%			67.9	%			67.9	%			1,057,170				31.17
State and Washington		Nordstrom Rack,    Uniqlo		2016			100.0	%			78,771				—				—				78,771				100.0	%			—	%			—	%			100.0	%			100.0	%			3,346,235				42.48
151 N. State Street		Walgreens		2016			100.0	%			27,385				—				—				27,385				100.0	%			—	%			—	%			100.0	%			100.0	%			1,573,000				57.44
North and Kingsbury		Old Navy, Backcountry		2016			100.0	%			41,791				—				—				41,791				100.0	%			—	%			—	%			100.0	%			100.0	%			1,803,987				43.17
Concord and Milwaukee		—		2016			100.0	%			13,105				—				—				13,105				100.0	%			—	%			—	%			100.0	%			100.0	%			439,870				33.57
California and Armitage		—		2016			100.0	%			—				—				18,275				18,275				—	%			—	%			70.5	%			70.5	%			78.8	%			683,156				52.99
Roosevelt Galleria		Petco, Vitamin    Shoppe		2015			100.0	%			—				—				37,995				37,995				—	%			—	%			47.7	%			47.7	%			63.4	%			613,881				33.86
Sullivan Center		Target		2016			100.0	%			176,181				—				—				176,181				78.9	%			—	%			—	%			78.9	%			78.9	%			5,008,408				36.04
											610,073				—				84,066				694,139				87.1	%			—	%			70.0	%			85.0	%			87.3	%			36,963,175				62.61
New York Metro
Soho Collection    (12 properties)		Faherty, ALC    Stone Island, Taft,    Frame, Theory;    Bang & Olufsen		2011 2014 2019 2020 2022			100.0	%			36,889				—				—				36,889				67.1	%			—	%			—	%			67.1	%			82.7	%			7,811,755				315.81
5-7 East 17th Street		—		2008			100.0	%			9,536				—				—				9,536				—	%			—	%			—	%			—	%			—	%			—				—
200 West 54th Street		—		2007			100.0	%			5,862				—				—				5,862				70.6	%			—	%			—	%			70.6	%			91.8	%			1,187,645				287.01
61 Main Street		—		2014			100.0	%			3,470				—				—				3,470				100.0	%			—	%			—	%			100.0	%			100.0	%			303,798				87.55
181 Main Street		TD Bank		2012			100.0	%			11,514				—				—				11,514				100.0	%			—	%			—	%			100.0	%			100.0	%			980,044				85.12
4401 White Plains Road		Walgreens		2011			100.0	%			—				12,964				—				12,964				—	%			100.0	%			—	%			100.0	%			100.0	%			625,000				48.21
Bartow Avenue		—		2005			100.0	%			—				—				14,590				14,590				—	%			—	%			80.0	%			80.0	%			80.0	%			369,767				31.67
239 Greenwich Avenue		Watches of Switzerland		1998			75.0	%			16,621				—				—				16,621				100.0	%			—	%			—	%			100.0	%			100.0	%			1,793,298				107.89

 

 

	27

 

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	Core Portfolio Retail Properties - Detail
Supplemental Report – June 30, 2022

 

 

252-256 Greenwich Avenue		Veronica Beard,    The RealReal,    Blue Mercury		2014			100.0	%			7,986				—				—				7,986				100.0	%			—	%			—	%			100.0	%			100.0	%			903,003				113.07
2914 Third Avenue		Planet Fitness		2006			100.0	%			—				21,650				18,953				40,603				—	%			100.0	%			100.0	%			100.0	%			100.0	%			1,022,572				25.18
868 Broadway		Dr. Martens		2013			100.0	%			2,031				—				—				2,031				100.0	%			—	%			—	%			100.0	%			100.0	%			838,855				413.03
313-315 Bowery 2		John Varvatos		2013			100.0	%			6,600				—				—				6,600				100.0	%			—	%			—	%			100.0	%			100.0	%			527,076				79.86
120 West Broadway		HSBC Bank		2013			100.0	%			13,838				—				—				13,838				79.8	%			—	%			—	%			79.8	%			100.0	%			2,074,884				187.97
2520 Flatbush Avenue		Bob's Disc. Furniture,    Capital One		2014			100.0	%			—				—				29,114				29,114				—	%			—	%			100.0	%			100.0	%			100.0	%			1,181,175				40.57
Williamsburg		Sephora, SweetGreen,    Levain Bakery		2022			100.0	%			50,842				—				—				50,842				100.0	%			—	%			—				100.0	%			100.0	%			5,057,521				99.48
991 Madison Avenue		Vera Wang,    Gabriella Hearst		2016			100.0	%			7,513				—				—				7,513				91.1	%			—	%			—	%			91.1	%			91.1	%			2,956,979				431.86
Shops at Grand		Stop & Shop (Ahold)		2014			100.0	%			—				52,336				47,349				99,685				—	%			100.0	%			87.9	%			94.2	%			100.0	%			3,166,201				33.71
Gotham Plaza		Bank of America,    Footlocker, Taco Bell		2016			49.0	%			—				—				25,922				25,922				—	%			—	%			73.9	%			73.9	%			91.6	%			1,506,196				78.64
											172,702				86,950				135,928				395,580				84.4	%			100.0	%			88.6	%			89.3	%			94.4	%			32,305,769				91.45
Los Angeles Metro
8833 Beverly Blvd		Luxury Living		2022			100.0	%			9,757				—				—				9,757				100.0	%			—	%			—	%			100.0	%			100.0	%			1,235,786				126.66
Melrose Place Collection		The Row, Chloe,    Oscar de la Renta		2019			100.0	%			14,000				—				—				14,000				100.0	%			—	%			—	%			100.0	%			100.0	%			2,610,181				186.44
											23,757				—				—				23,757				100.0	%			—	%			—	%			100.0	%			100.0	%			3,845,967				161.89
District of Columbia Metro
1739-53 & 1801-03    Connecticut Avenue		TD Bank, Glossier		2012			100.0	%			20,669				—				—				20,669				58.7	%			—	%			—	%			58.7	%			66.7	%			792,815				65.37
14th Street Collection (3 properties)		Mitchell Gold and Bob Williams, Verizon		2021			100.0	%			19,461				—				—				19,461				100.0	%			—	%			—	%			100.0	%			100.0	%			1,394,030				71.63
Rhode Island Place    Shopping Center		Ross Dress for Less		2012			100.0	%			—				25,134				32,533				57,667				—	%			100.0	%			88.4	%			93.4	%			100.0	%			1,857,609				34.47
M Street and Wisconsin Corridor    (26 Properties) 3		Lululemon, Duxiana, Rag and Bone,    The Reformation		2011 2016 2019			24.8	%			244,453				—				—				244,453				73.4	%			—	%			—	%			73.4	%			81.4	%			12,066,176				67.23
											284,583				25,134				32,533				342,250				74.2	%			100.0	%			88.4	%			77.4	%			84.7	%			16,110,630				60.81
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	%			1,320,045				24.34
165 Newbury Street		Starbucks		2016			100.0	%			1,050				—				—				1,050				100.0	%			—	%			—	%			100.0	%			100.0	%			294,632				280.60
											1,050				40,800				13,426				55,276				100.0	%			100.0	%			100.0	%			100.0	%			100.0	%			1,614,677				29.21
Texas Metro
Henderson Avenue Portfolio (14 properties)		Sprouts Market		2022			100.0	%			91,680				31,635				—				123,315				85.3	%			100.0	%			—	%			89.1	%			91.8	%			4,188,041				38.13

 

 

	28

 

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	Core Portfolio Retail Properties - Detail
Supplemental Report – June 30, 2022

 

 

Total Street and Urban Retail											1,183,845				184,519				265,953				1,634,317				83.7	%			100.0	%			83.3	%			85.5	%			89.4	%		$	95,028,259			$	68.00
Acadia Share Total Street and Urban Retail											985,717				184,519				252,733				1,422,969				85.8	%			100.0	%			83.8	%			87.2	%			90.5	%		$	84,323,440			$	67.92
SUBURBAN PROPERTIES
New Jersey
Elmwood Park Shopping Center		Walgreens, Lidl		1998			100.0	%			—				43,531				100,379				143,910				—	%			100.0	%			76.6	%			83.7	%			96.9	%			3,202,998				26.60
Marketplace of Absecon		Walgreens, Dollar Tree		1998			100.0	%			—				46,724				57,832				104,556				—	%			100.0	%			85.9	%			92.2	%			92.2	%			1,442,036				14.96
New York
Village Commons    Shopping Center		—		1998			100.0	%			—				—				87,128				87,128				—	%			—	%			93.7	%			93.7	%			98.1	%			2,772,038				33.97
Branch Plaza		LA Fitness,    The Fresh Market		1998			100.0	%			—				76,264				47,081				123,345				—	%			100.0	%			88.4	%			95.6	%			98.8	%			3,173,817				26.92
Amboy Center		Stop & Shop (Ahold)		2005			100.0	%			—				37,266				26,024				63,290				—	%			100.0	%			71.9	%			88.4	%			88.4	%			1,871,634				33.44
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		HomeGoods,Pet-    Smart		1998			49.0	%			—				202,727				108,928				311,655				—	%			50.3	%			55.9	%			52.3	%			85.3	%			5,626,890				34.54
New Loudon Center		Price Chopper,    Marshalls		1993			100.0	%			—				242,058				16,643				258,701				—	%			94.8	%			100.0	%			95.2	%			95.2	%			2,237,910				9.09
28 Jericho Turnpike		Kohl's		2012			100.0	%			—				96,363				—				96,363				—	%			100.0	%			—	%			100.0	%			100.0	%			1,996,500				20.72
Bedford Green		Shop Rite, CVS		2014			100.0	%			—				37,981				52,608				90,589				—	%			100.0	%			57.1	%			75.1	%			75.1	%			2,364,956				34.77
Connecticut
Town Line Plaza 4		Wal-Mart, Stop    & Shop (Ahold)		1998			100.0	%			—				163,159				42,930				206,089				—	%			100.0	%			94.2	%			98.8	%			98.8	%			1,869,859				17.40
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	%			1,467,752				11.29
Crescent Plaza		Home Depot, Shaw's    (Supervalu)		1993			100.0	%			—				156,985				61,163				218,148				—	%			100.0	%			85.7	%			96.0	%			96.0	%			2,066,246				9.87
201 Needham Street		Michael's		2014			100.0	%			—				20,409				—				20,409				—	%			100.0	%			—	%			100.0	%			100.0	%			646,965				31.70
163 Highland Avenue		Staples, Petco		2015			100.0	%			—				40,505				—				40,505				—	%			100.0	%			—	%			100.0	%			100.0	%			1,490,575				36.80
Vermont
The Gateway Shopping Center		Shaw's (Supervalu)		1999			100.0	%			—				73,184				28,290				101,474				—	%			100.0	%			94.9	%			98.6	%			98.6	%			2,205,414				22.05
Illinois
Hobson West Plaza		Garden Fresh    Markets		1998			100.0	%			—				51,692				47,270				98,962				—	%			100.0	%			93.2	%			96.8	%			98.7	%			1,279,969				13.37
Indiana
Merrillville Plaza		Jo-Ann Fabrics,   TJ Maxx		1998			100.0	%			—				123,144				112,782				235,926				—	%			82.3	%			75.1	%			78.8	%			88.1	%			2,707,700				14.56
Michigan

 

 

	29

 

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	Core Portfolio Retail Properties - Detail
Supplemental Report – June 30, 2022

 

 

Bloomfield Town Square		HomeGoods,    TJ Maxx		1998			100.0	%			—				153,839				81,588				235,427				—	%			80.9	%			93.3	%			85.2	%			99.4	%			3,590,931				17.90
Delaware
Town Center and Other    (2 properties)		Lowes, Bed Bath &    Beyond, Target		2003			100.0	%			—				751,455				48,608				800,063				—	%			94.2	%			91.4	%			94.0	%			94.0	%			12,783,419				17.00
Market Square Shopping Center		Trader Joe's,    TJ Maxx		2003			100.0	%			—				42,850				59,197				102,047				—	%			100.0	%			95.5	%			97.4	%			100.0	%			3,171,271				31.91
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	%			246,274				2.30
Plaza 422		Home Depot		1993			100.0	%			—				139,968				16,311				156,279				—	%			100.0	%			100.0	%			100.0	%			100.0	%			909,901				5.82
Chestnut Hill		—		2006			100.0	%			—				—				36,492				36,492				—	%			—	%			100.0	%			100.0	%			100.0	%			961,735				26.35
Abington Towne Center 5		Target, TJ Maxx		1998			100.0	%			—				184,616				32,255				216,871				—	%			100.0	%			100.0	%			100.0	%			100.0	%			1,309,005				22.09
Total Suburban Properties											—				2,964,680				1,095,276				4,059,956				—	%			93.0	%			82.6	%			90.2	%			95.0	%		$	63,314,867			$	18.45
Acadia Share Total Suburban Properties											—				2,861,289				1,039,723				3,901,012				—	%			94.5	%			84.0	%			91.7	%			95.4	%		$	60,445,153			$	18.08
Total Core Properties											1,183,845				3,149,199				1,361,229				5,694,273				83.7	%			93.4	%			82.7	%			88.8	%			93.4	%		$	158,343,126			$	32.77
Acadia Share Total Core Properties											985,717				3,045,808				1,292,456				5,323,981				85.8	%			94.8	%			84.0	%			90.5	%			94.1	%		$	144,768,593			$	31.55

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	30

 

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	Core Portfolio – Top Tenants 1
Supplemental Report – June 30, 2022	(Pro Rata Basis)

 

		Number of				Combined								Percentage of Total
Tenant		Stores				GLA				ABR				GLA				ABR
Target			3				408,895			$	8,126,134				7.7	%			5.6	%
Walgreens			6				95,189				4,197,379				1.8	%			2.9	%
Bed, Bath, and Beyond 2			3				172,432				3,942,421				3.2	%			2.7	%
Royal Ahold 3			3				155,461				3,475,460				2.9	%			2.4	%
TJX Companies 4			8				229,043				2,765,292				4.3	%			1.9	%
PetSmart, Inc.			4				55,867				2,759,637				1.0	%			1.9	%
Verizon			2				26,054				2,754,366				0.5	%			1.9	%
Lululemon			2				7,533				2,541,414				0.1	%			1.8	%
LA Fitness International LLC			2				100,000				2,524,787				1.9	%			1.7	%
Fast Retailing 5			2				32,013				2,369,223				0.6	%			1.6	%
Trader Joe's			3				40,862				2,357,003				0.8	%			1.6	%
Gap 6			3				44,895				2,157,532				0.8	%			1.5	%
Albertsons Companies7			2				123,409				1,980,640				2.3	%			1.4	%
Bob's Discount Furniture			2				68,793				1,843,336				1.3	%			1.3	%
Tapestry8			2				4,250				1,686,218				0.1	%			1.2	%
Watches of Switzerland9			2				13,863				1,624,974				0.3	%			1.1	%
Ulta Salon Cosmetic & Fragrance			3				31,497				1,550,757				0.6	%			1.1	%
Dick's Sporting Goods, Inc			2				98,805				1,519,874				1.9	%			1.0	%
JP Morgan Chase			6				21,721				1,446,408				0.4	%			1.0	%
Citibank			4				16,160				1,337,924				0.3	%			0.9	%
TOTAL			64				1,746,742			$	52,960,779				32.8	%			36.5	%

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	31

 

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	Core Portfolio – Lease Expirations
Supplemental Report – June 30, 2022	(Pro Rata Basis)

 

		Street Tenants																				Anchor Tenants
						GLA								ABR												GLA								ABR
		Leases				Expiring				Percent								Percent				Leases				Expiring				Percent								Percent
Year		Expiring				SF				of Total				PSF				of Total				Expiring				SF				of Total				PSF				of Total
M to M 1			2				7,430				0.9	%		$	51.51				0.5	%			—				—				—	%		$	—				—	%
2022			3				5,510				0.7	%			176.29				1.4	%			1				55,000				2.1	%			27.01				3.7	%
2023			26				152,872				18.1	%			83.81				17.9	%			5				172,255				6.5	%			14.98				6.4	%
2024			19				73,963				8.8	%			87.87				9.1	%			14				523,842				19.9	%			14.45				18.9	%
2025			26				81,922				9.7	%			121.97				14.0	%			10				391,435				14.9	%			19.63				19.2	%
2026			27				74,299				8.8	%			137.30				14.3	%			10				444,889				16.9	%			10.93				12.1	%
2027			13				23,176				2.7	%			104.36				3.4	%			2				74,188				2.8	%			15.37				2.8	%
2028			12				52,358				6.2	%			105.10				7.7	%			7				436,997				16.6	%			11.11				12.1	%
2029			16				43,386				5.1	%			91.63				5.6	%			5				182,205				6.9	%			16.04				7.3	%
2030			9				71,456				8.5	%			60.05				6.0	%			—				—				—	%			—				—	%
2031			7				41,177				4.9	%			68.80				4.0	%			2				50,566				1.9	%			13.94				1.8	%
Thereafter			17				217,733				25.6	%			53.48				16.1	%			7				302,538				11.5	%			20.88				15.7	%
Total			177				845,282				100.0	%		$	84.62				100.0	%			63				2,633,915				100.0	%		$	15.15				100.0	%
Anchor GLA Owned by Tenants							—																				254,916
Total Vacant							140,435																				156,977
Total Square Feet							985,717																				3,045,808
		Shop Tenants																				Total Tenants
						GLA								ABR												GLA								ABR
		Leases				Expiring				Percent								Percent				Leases				Expiring				Percent								Percent
Year		Expiring				SF				of Total				PSF				of Total				Expiring				SF				of Total				PSF				of Total
M to M 1			1				1,400				0.1	%		$	24.40				0.1	%			3				8,830				0.2	%		$	47.21				0.3	%
2022			10				27,069				2.5	%			30.28				2.5	%			14				87,579				1.9	%			37.41				2.3	%
2023			40				128,186				11.8	%			29.88				11.6	%			71				453,313				9.9	%			42.41				13.3	%
2024			34				146,706				13.5	%			25.26				11.2	%			67				744,511				16.3	%			23.87				12.3	%
2025			34				115,664				10.7	%			28.52				10.0	%			70				589,021				12.9	%			35.61				14.5	%
2026			36				137,392				12.7	%			25.37				10.5	%			73				656,580				14.4	%			28.25				12.8	%
2027			32				119,433				11.0	%			35.19				12.7	%			47				216,797				4.7	%			35.80				5.4	%
2028			23				106,276				9.8	%			37.50				12.0	%			42				595,631				13.0	%			24.08				9.9	%
2029			13				42,281				3.9	%			29.16				3.7	%			34				267,872				5.9	%			30.36				5.6	%
2030			12				35,348				3.3	%			34.04				3.6	%			21				106,804				2.3	%			51.44				3.8	%
2031			17				86,237				7.9	%			28.79				7.5	%			26				177,980				4.0	%			33.83				4.2	%
Thereafter			29				139,157				12.8	%			34.81				14.6	%			53				659,428				14.5	%			34.59				15.6	%
Total			281				1,085,149				100.0	%		$	30.53				100.0	%			521				4,564,346				100.0	%		$	31.55				100.0	%
Anchor GLA Owned by Tenants							—																				254,916
Total Vacant							207,307																				504,719
Total Square Feet							1,292,456																				5,323,981

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

 

 

	32

 

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	Core Portfolio – New and Renewal Rent Spreads 1
Supplemental Report – June 30, 2022

 

		Quarter Ended																Year to Date
		March 31, 2022								June 30, 2022								June 30, 2022
		GAAP 2				Cash 3				GAAP 2				Cash 3				GAAP 2				Cash 3
New Leases
Number of new leases executed			4				4				2				2				6				6
GLA			12,970				12,970				11,000				11,000				23,970				23,970
New base rent		$	37.83			$	34.10			$	113.70			$	99.38			$	72.65			$	64.06
Previous base rent		$	34.75			$	35.01			$	98.17			$	99.15			$	63.85			$	64.44
Average cost per square foot		$	42.51			$	42.51			$	161.05			$	161.05			$	96.91			$	96.91
Weighted Average Lease Term (years)			12.0				12.0				11.8				11.8				11.9				11.9
Percentage growth in base rent			8.9	%			(2.6	)%			15.8	%			0.2	%			13.8	%			(0.6	)%
Renewal Leases
Number of renewal leases executed			21				21				12				12				33				33
GLA			284,858				284,858				71,026				71,026				355,884				355,884
New base rent		$	32.60			$	32.29			$	45.44			$	44.21			$	35.16			$	34.67
Expiring base rent		$	29.45			$	29.81			$	39.43			$	41.79			$	31.44			$	32.20
Average cost per square foot		$	21.29			$	21.29			$	6.34			$	6.34			$	18.31			$	18.31
Weighted Average Lease Term (years)			5.8				5.8				5.1				5.1				5.7				5.7
Percentage growth in base rent			10.7	%			8.3	%			15.2	%			5.8	%			11.8	%			7.7	%
Total New and Renewal Leases
Number of new and renewal leases executed			25				25				14				14				39				39
GLA commencing			297,828				297,828				82,026				82,026				379,854				379,854
New base rent		$	32.83			$	32.37			$	54.59			$	51.61			$	37.53			$	36.52
Expiring base rent		$	29.68			$	30.04			$	47.31			$	49.48			$	33.49			$	34.23
Average cost per square foot		$	22.21			$	22.21			$	27.09			$	27.09			$	23.27			$	23.27
Weighted Average Lease Term (years)			6.1				6.1				6.0				6.0				6.1				6.1
Percentage growth in base rent			10.6	%			7.8	%			15.4	%			4.3	%			12.1	%			6.7	%

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	33

 

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	Core Portfolio – Capital Expenditures
Supplemental Report – June 30, 2022

 

		Quarter Ended								Year to Date
		March 31,  2022				June 30, 2022				June 30, 2022				December 31, 2021
Leasing Commissions		$	1,053			$	1,057			$	2,110			$	2,360
Tenant Improvements			3,403				2,250				5,653				10,059
Maintenance Capital Expenditures			638				2,049				2,687				4,060
Total Capital Expenditures		$	5,094			$	5,356			$	10,450			$	16,479

 

 

 

	34

 

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	Fund Overview
Supplemental Report – June 30, 2022

 

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			$		120.0		Million			$		123.3		Million			$		125.0		Million			$		104.5		Million			$		492.8		Million
Acadia's Pro Rata Share				22.2		%					40.0		%					24.5		%					23.1		%					20.1		%					25.2		%
Acadia's Promoted Share 1				37.8		%					52.0		%					39.6		%					38.5		%					36.1		%					40.2		%
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			$		385.3		Million			$		448.1		Million			$		488.1		Million			$		347.9		Million			$		1,756.1		Million
Cumulative Net Distributions 3		$		195.4		Million			$		172.1		Million			$		601.5		Million			$		212.4		Million			$		71.7		Million			$		1,253.0		Million
Net Distributions/Contributions				225.6		%					44.7		%					134.2		%					43.5		%					20.6		%					71.4		%
Unfunded Commitment 4		$		0.0		Million			$		0.0		Million			$		1.9		Million			$		41.9		Million			$		172.1		Million			$		215.8		Million
Acquisition Dry Powder 5			N/A							N/A							N/A							N/A						$		104.0		Million			$		70.8		Million
Investment Period Closes			Closed							Closed							Closed							Closed							Aug-2022
Currently in a Promote Position? (Yes/No)			No							No							No							No							No
II. FEES & PRIORITY DISTRIBUTIONS EARNED BY ACADIA
Type:			Applicable to							Description
Asset Management 6			Fund I & II							1.0% in 2021, 0.75% in 2022, 0% in 2023
Asset Management			Fund III							Currently 0%
Asset Management 6			Fund IV							1.5% of Implied Capital during the investment period; 1.25% of Implied Capital post-investment period
Asset Management 7			Fund V							1.5% of Implied Capital for Year 1-4 of the investment period; 1.5% of Allocated Capital Commitments for Year 5 of the investment period (August 26, 2020-August 25, 2021); 1.0% of Allocated Capital Commitments for Year 6 of the investment period (August 26, 2021-August 25, 2022); 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

__________

 

	35

 

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	Fund Portfolio Retail Properties – Detail 1
Supplemental Report – June 30, 2022

 

				Year		Fund				Gross Leasable Area																In Place Occupancy																Leased				Annualized
Property		Key Tenants		Acquired		Ownership %				Street				Anchors				Shops				Total				Street				Anchors				Shops				Total				Occupancy				Base Rent (ABR)				ABR PSF
Fund II Portfolio Detail
NEW YORK
New York
City Point		Target, Basis Schools, Alamo Drafthouse		2007			94.2	%			—				352,201				188,869				541,070				—	%			64.3	%			26.1	%			51.0	%			75.0	%		$	9,955,623			$	36.11
Total - Fund II											—				352,201				188,869				541,070				—	%			64.3	%			26.1	%			51.0	%			75.0	%		$	9,955,623			$	36.11
Fund III Portfolio Detail
NEW YORK
New York
640 Broadway		Swatch		2012			100.0	%			4,637				—				—				4,637				91.6	%			—	%			—	%			91.6	%			91.6	%		$	1,052,453			$	247.81
Total - Fund III											4,637				—				—				4,637				91.6	%			—	%			—	%			91.6	%			91.6	%		$	1,052,453			$	247.81
Fund IV Portfolio Detail
NEW YORK
New York
801 Madison Avenue		─		2015			100.0	%			2,522				—				—				2,522				—	%			—	%			—	%			—	%			—	%		$	—			$	—
210 Bowery		─		2012			100.0	%			2,538				—				—				2,538				—	%			—	%			—	%			—	%			—	%			—				—
27 East 61st Street		─		2014			100.0	%			4,177				—				—				4,177				—	%			—	%			—	%			—	%			—	%			—				—
17 East 71st Street		The Row		2014			100.0	%			8,432				—				—				8,432				82.2	%			—	%			—	%			82.2	%			82.2	%			1,832,345				264.33
1035 Third Avenue 2		─		2015			100.0	%			7,634				—				—				7,634				100.0	%			—	%			—	%			100.0	%			100.0	%			1,265,746				165.80
New Jersey
Paramus Plaza		Ashley Furniture, Marshalls		2013			50.0	%			—				87,539				65,955				153,494				—	%			100.0	%			100.0	%			100.0	%			100.0	%			3,233,834				21.07
BOSTON
Massachusetts
Restaurants at Fort Point		─		2016			100.0	%			15,711				—				—				15,711				100.0	%			—	%			—	%			100.0	%			100.0	%			1,030,234				65.57
Rhode Island
650 Bald Hill Road		Dick's Sporting Goods, Burlington Coat Factory		2015			90.0	%			—				55,000				105,448				160,448				—	%			100.0	%			77.7	%			85.4	%			85.4	%			2,052,672				14.99
MID-ATLANTIC
Virginia
Promenade at Manassas		Home Depot		2013			98.6	%			—				209,356				71,404				280,760				—	%			100.0	%			100.0	%			100.0	%			100.0	%			3,686,092				13.13
Delaware
Eden Square		Giant Food, LA Fitness		2014			98.6	%			—				116,003				113,933				229,936				—	%			100.0	%			79.8	%			90.0	%			93.4	%			3,274,283				15.82
SOUTHEAST
Georgia
Broughton Street Portfolio    (13 properties)		H&M, Lululemon, Kendra Scott, Starbucks		2014			100.0	%			95,201				—				—				95,201				89.4	%			—	%			—	%			89.4	%			94.3	%			3,077,289				36.16

 

 

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	Fund Portfolio Retail Properties – Detail 1
Supplemental Report – June 30, 2022

 

North Carolina
Wake Forest Crossing		Lowe's, TJ Maxx		2016			100.0	%			—				113,353				88,972				202,325				—	%			100.0	%			97.3	%			98.8	%			99.4	%			3,183,396				15.92
WEST
California
146 Geary Street		─		2015			100.0	%			11,436				—				—				11,436				—	%			—	%			—	%			—	%			—	%			—				—
Union and Fillmore Collection (3 properties)		Eileen Fisher, Bonobos		2015			90.0	%			7,148				—				—				7,148				77.9	%			—	%			—	%			77.9	%			77.9	%			632,195				113.60
Total - Fund IV											154,799				581,251				445,712				1,181,762				78.1	%			100.0	%			89.0	%			93.0	%			94.2	%		$	23,268,086			$	21.17
Fund V Portfolio Detail
SOUTHWEST
New Mexico
Plaza Santa Fe		TJ Maxx, Best Buy, Ross Dress for Less		2017			100.0	%			—				153,983				70,169				224,152				—	%			100.0	%			91.5	%			97.3	%			97.3	%		$	3,988,358			$	18.28
Texas
Wood Ridge Plaza		Kirkland's, Office Depot		2022			90.0	%			—				—				211,183				211,183				—	%			—	%			84.7	%			84.7	%			84.7	%			3,709,902				20.75
La Frontera Plaza		Kohl's, Hobby Lobby		2022			90.0	%			—				203,500				330,930				534,430				—	%			100.0	%			81.8	%			88.7	%			92.6	%			6,519,345				13.75
MIDWEST
Michigan
New Towne Plaza		Kohl's, Jo-Ann's, DSW		2017			100.0	%			—				145,389				45,141				190,530				—	%			100.0	%			89.8	%			97.6	%			100.0	%			2,243,651				12.07
Fairlane Green		TJ Maxx, Michaels		2017			100.0	%			—				109,952				160,235				270,187				—	%			74.5	%			82.0	%			78.9	%			91.2	%			4,332,766				20.32
NORTHEAST
Maryland
Frederick County (2 properties)		Kohl's, Best Buy, Ross Dress for Less		2019			90.0	%			—				251,988				278,778				530,766				—	%			100.0	%			76.1	%			87.4	%			91.0	%			6,774,430				14.60
Connecticut
Tri-City Plaza		TJ Maxx, HomeGoods, ShopRite		2019			90.0	%			—				129,940				172,948				302,888				—	%			100.0	%			79.9	%			88.5	%			91.5	%			3,808,260				14.20
New Jersey
Midstate		ShopRite, Best Buy, DSW, PetSmart		2021			100.0	%			—				253,779				131,337				385,116				—	%			90.5	%			70.8	%			83.8	%			83.8	%			6,217,529				19.26
Pennsylvania
Monroe Marketplace		Kohl's, Dick's Sporting Goods, Giant Food		2021			100.0	%			—				263,376				108,276				371,652				—	%			100.0	%			100.0	%			100.0	%			100.0	%			4,231,262				11.39
Rhode Island
Lincoln Commons		Stop and Shop, Marshalls, HomeGoods		2019			100.0	%			—				194,470				267,551				462,021				—	%			100.0	%			69.9	%			82.6	%			82.6	%			5,096,337				13.36
SOUTHEAST
Virginia
Landstown Commons		Best Buy, Burlington Coat Factory, Ross Dress for Less		2019			100.0	%			—				87,883				305,219				393,102				—	%			100.0	%			85.9	%			89.0	%			91.6	%			7,396,040				21.13
Florida
Palm Coast Landing		TJ Maxx, PetSmart, Ross Dress for Less		2019			100.0	%			—				73,241				98,558				171,799				—	%			100.0	%			94.6	%			96.9	%			96.9	%			3,419,681				20.55

 

 

	37

 

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	Fund Portfolio Retail Properties – Detail 1
Supplemental Report – June 30, 2022

 

North Carolina
Hickory Ridge		Kohl's, Best Buy, Dick's		2017			100.0	%			—				266,584				113,981				380,565				—	%			100.0	%			100.0	%			100.0	%			100.0	%			4,726,781				12.42
Alabama
Trussville Promenade		Wal-Mart, Regal Cinemas		2018			100.0	%			—				366,010				97,671				463,681				—	%			100.0	%			73.0	%			94.3	%			95.1	%			4,473,579				10.23
Georgia
Canton Marketplace		Dick's, TJ Maxx, Best Buy		2021			100.0	%			—				132,569				219,409				351,978				—	%			100.0	%			82.6	%			89.1	%			90.2	%			5,414,890				17.26
Hiram Pavilion		Kohl's, HomeGoods		2018			100.0	%			—				209,423				153,252				362,675				—	%			100.0	%			98.6	%			99.4	%			99.4	%			4,546,365				12.61
WEST
California
Elk Grove Commons		Kohl's, HomeGoods		2018			100.0	%			—				132,489				109,589				242,078				—	%			100.0	%			88.8	%			94.9	%			99.1	%			4,878,354				21.23
Utah
Family Center at Riverdale		Target, Sportman's Warehouse		2019			89.4	%			—				256,673				115,709				372,382				—	%			80.5	%			97.7	%			85.9	%			98.0	%			3,349,795				10.48
Total - Fund V											—				3,231,249				2,989,936				6,221,185				—	%			96.8	%			83.9	%			90.6	%			93.2	%		$	85,127,325			$	15.10
TOTAL FUND PROPERTIES											159,436				4,164,701				3,624,517				7,948,654				78.5	%			94.5	%			81.5	%			88.3	%			92.1	%		$	119,403,487			$	17.02
Acadia Share of Total Fund Properties											36,730				887,123				742,267				1,666,121				78.6	%			92.5	%			78.9	%			86.1	%			91.1	%		$	25,555,533			$	17.81

__________

1. Excludes properties under development, see “Development and Redevelopment 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).

 

 

	38

 

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	Fund Lease Expirations
Supplemental Report – June 30, 2022	(Pro Rata Basis)

 

		FUND II																								FUND III
						GLA												ABR												GLA												ABR
		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			—				—				—	%		$	—			$	—				—	%			—				—				—	%		$	—			$	—				—	%
2022			—				—				—	%			—				—				—	%			—				—				—	%			—				—				—	%
2023			—				—				—	%			—				—				—	%			1				159				15.3	%			64,321				404.53				24.9	%
2024			—				—				—	%			—				—				—	%			—				—				—	%			—				—				—	%
2025			—				—				—	%			—				—				—	%			—				—				—	%			—				—				—	%
2026			1				926				0.9	%			100,645				108.69				2.7	%			—				—				—	%			—				—				—	%
2027			—				—				—	%			—				—				—	%			—				—				—	%			—				—				—	%
2028			2				8,402				8.1	%			553,001				65.82				14.7	%			1				306				29.4	%			72,073				235.53				28.0	%
2029			1				358				0.3	%			69,839				195.08				1.9	%			—				—				—	%			—				—				—	%
2030			—				—				—	%			—				—				—	%			1				177				17.0	%			39,664				224.09				15.4	%
2031			—				—				—	%			—				—				—	%			1				226				21.7	%			49,453				218.82				19.2	%
Thereafter			7				94,261				90.7	%			3,029,785				32.14				80.7	%			1				173				16.6	%			32,340				186.94				12.5	%
Total			11				103,947				100.0	%		$	3,753,270			$	36.11				100.0	%			5				1,041				100.0	%		$	257,851			$	247.81				100.0	%
							100,036			Total Vacant																					95			Total Vacant
							203,983			Total Square Feet																					1,136			Total Square Feet
		FUND IV																								FUND V
						GLA												ABR												GLA												ABR
		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			—				—				—	%		$	—			$	—				—	%			13				5,902				0.5	%		$	111,446			$	18.88				0.7	%
2022			2				1,144				0.5	%			19,199				16.78				0.4	%			15				11,607				1.1	%			248,395				21.40				1.5	%
2023			9				3,619				1.6	%			111,979				30.94				2.3	%			70				81,706				7.4	%			1,558,234				19.07				9.4	%
2024			5				2,006				0.9	%			52,948				26.39				1.1	%			83				170,598				15.5	%			2,617,900				15.35				15.7	%
2025			17				17,427				7.5	%			764,577				43.87				15.5	%			78				185,502				16.9	%			2,663,378				14.36				16.0	%
2026			23				33,702				14.6	%			779,318				23.12				15.8	%			76				96,915				8.8	%			1,877,294				19.37				11.3	%
2027			18				22,061				9.5	%			447,071				20.27				9.1	%			52				132,897				12.1	%			1,727,265				13.00				10.4	%
2028			8				6,175				2.7	%			183,209				29.67				3.7	%			28				75,779				6.9	%			1,283,244				16.93				7.7	%
2029			10				42,053				18.2	%			728,594				17.33				14.8	%			27				71,498				6.5	%			844,724				11.81				5.1	%
2030			3				4,912				2.1	%			87,865				17.89				1.8	%			27				76,460				7.0	%			1,033,550				13.52				6.2	%
2031			11				47,319				20.4	%			694,795				14.68				14.3	%			28				63,204				5.8	%			1,024,479				16.21				6.2	%
Thereafter			16				51,057				22.0	%			1,050,851				20.58				21.2	%			31				126,452				11.5	%			1,634,099				12.92				9.8	%
Total			122				231,475				100.0	%		$	4,920,404			$	21.26				100.0	%			528				1,098,520				100.0	%		$	16,624,008			$	15.13				100.0	%
							18,473			Total Vacant																					112,533			Total Vacant
							249,948			Total Square Feet																					1,211,053			Total Square Feet

__________

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

 

 

	39

 

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	Development and Redevelopment Activity
Supplemental Report – June 30, 2022

 

								Est. SQFT										Acquisition & Development Costs 1
Property		Ownership 1		Location		Estimated Stabilization		Upon Completion				Occupied/ Leased Rate		Key Tenants		Description		Incurred 2				Estimated Future Range										Estimated Total Range
Development:
CORE
1238 Wisconsin		80.0%		Washington DC		2023			29,000			0%/14%		Wolford		Redevelopment/addition to existing building with ground level retail, upper floor office and residential units upon completion. Discretionary spend upon securing tenant(s)		$	12.4			$	20.3			to		$	21.1			$	32.7			to		$	33.5
Henderson - Development 1 & 2		100.0%		Dallas, TX		TBD			160,000			—		TBD		Ground up development for mixed-use street-level retail spaces and upper level office spaces.		$	9.7			TBD						TBD				TBD						TBD
FUND III
Broad Hollow Commons		100.0%		Farmingdale, NY		TBD		TBD				—		TBD		Discretionary spend upon securing necessary approvals and tenant(s) for lease up			24.9				25.1			to			35.1				50.0			to			60.0
FUND IV
717 N. Michigan Avenue		100.0%		Chicago, IL		2025			62,000			14%/14%		TBD		Discretionary spend upon securing tenant(s) for lease up			116.5				12.0			to			19.5				128.5			to			136.0
																		$	163.5			$	57.4					$	75.7			$	211.2					$	229.5
Major Redevelopment:
CORE
City Center		100.0%		San Francisco, CA		2024			241,000			75%/99%		Target, Whole Foods, PetSmart		Ground up development of pad sites and street level retail and re-tenanting/redevelopment for Whole Foods		$	202.3			$	7.7			to		$	10.7			$	210.0			to		$	213.0
555 9th Street		100.0%		San Francisco, CA		TBD			149,000			69%/69%		TBD		Re-tenanting and potential split of former 46,000 square foot Nordstrom; façade upgrade and possible vertical expansion			—			TBD				to		TBD				TBD				to		TBD
651-671 West Diversey		100.0%		Chicago, IL		TBD			46,000			86%/86%		TBD		'Discretionary spend for future re-tenanting and re-configuration of approximately 30,000 sf.			—			TBD						TBD				TBD						TBD
Route 6 Mall		100.0%		Honesdale, PA		TBD		TBD				26%/26%		TBD		Discretionary spend for re-tenanting former 120,000 square foot Kmart anchor space once tenant(s) are secured			—				6.0			to			9.0				6.0			to			9.0
Mad River		100.0%		Dayton, OH		TBD		TBD				48%/48%		TBD		Discretionary spend for the re-tenanting former 33,000 square foot Babies R Us space once tenant(s) are secured			—				1.9			to			2.3				1.9			to			2.3
																		$	202.3			$	15.6					$	22.0			$	217.9					$	224.3

_________

 

 

	40

 

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	Development and Redevelopment Activity
Supplemental Report – June 30, 2022

__________

 

 

Development costs above						$	163.5
Unconsolidated projects (a)							(12.4	)
Projects in redevelopment or partial development (b)							75.0
Deferred costs and other amounts							(5.7	)
Impairment charges taken							(17.4	)
Total per consolidated balance sheet						$	203.0

 

 

	41

 

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	Important Notes
Supplemental Report – June 30, 2022

 

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. 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. Also consistent with NAREIT’s definition of FFO, the Company has elected to include gains and losses incidental to its main business (including those related to its RCP investments such as Albertsons) in FFO.

The Company also provides another 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, stock-based compensation, amortization of finance costs and costs of management contracts, tenant improvements, leasing commissions and capital expenditures.

 

The Company may also provide from time to time another supplemental disclosure of operating performance, FFO Before Special Items. The Company defines FFO Before Special Items as FFO adjusted for certain unusual items including charges, income and gains that management believes are not comparable and indicative of the results of the Company’s operating real estate portfolio.

 

It should be noted that the Company’s methods of calculating FFO, AFFO or FFO Before Special Items may be different from methods used by other REITs and, accordingly, may not be comparable to such metrics used by other REITs. FFO, AFFO and FFO Before Special Items do not represent cash generated from operations as defined by generally accepted accounting principles (“GAAP”) and are not indicative of cash available to fund all cash needs, including distributions. None of these measures should 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.

 

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.

 

 

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