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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of Earliest Event Reported): May 2, 2023

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 May 2, 2023, Acadia Realty Trust (the “Company”) issued a press release announcing its consolidated financial results for the quarter ended March 31, 2023. 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 ended March 31, 2023. 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 5.07. Submission of Matters to a Vote of Security Holders.

The annual meeting of shareholders (the “Annual Meeting”) of the Company was held on May 4, 2023. Shareholders representing 90,009,969 common shares of beneficial interest (“Common Shares”), or 94.57%, of the Common Shares outstanding as of the March 7, 2023 record date, either participated or were represented at the Annual meeting by proxy.

The proposals listed below were submitted to a vote of the holders of Common Shares (“Shareholders”). The proposals are described in the Company’s definitive proxy statement for the Annual Meeting previously filed with the Securities and Exchange Commission, on March 24, 2023.

The following table sets forth the final voting results of the proposals.

		Votes Cast For		Votes Against		Abstentions		Broker Non-Votes
Proposal No. 1 - Election of Trustees:
Proposal 1a - Election of Trustee: Kenneth F. Bernstein		87,576,623		433,824		3,538		1,995,984
Proposal 1b - Election of Trustee: Douglas Crocker II		86,044,720		1,965,942		3,323		1,995,984
Proposal 1c - Election of Trustee: Mark A. Denien		87,694,890		314,735		4,360		1,995,984
Proposal 1d - Election of Trustee: Kenneth A. McIntyre		86,798,340		1,211,391		4,254		1,995,984
Proposal 1e - Election of Trustee: William T. Spitz		83,757,595		4,252,044		4,346		1,995,984
Proposal 1f - Election of Trustee: Lynn C. Thurber		87,400,994		608,753		4,238		1,995,984
Proposal 1g - Election of Trustee: Lee S. Wielansky		85,233,353		2,776,258		4,374		1,995,984
Proposal 1h - Election of Trustee: Hope B. Woodhouse		87,059,099		950,551		4,335		1,995,984
Proposal 1i - Election of Trustee: C. David Zoba		76,158,670		11,851,065		4,250		1,995,984

 

		Votes Cast For		Votes Against		Abstentions
Proposal No. 2 - Ratification of the Appointment of BDO USA, LLP as the Independent Registered Public Accounting Firm for the Fiscal Year Ending December 31, 2023		89,037,630		961,138		11,201

 

		Votes Cast For		Votes Against		Abstentions		Broker Non-Votes
Proposal No. 3: Advisory (Non-Binding) Approval of Named Executive Officer Compensation		82,470,251		5,508,153		35,581		1,995,984

 

 

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		Votes Cast For		Votes Against		Abstentions		Broker Non-Votes
Proposal No. 4: Approval of the Company’s Amended and Restated 2020 Share Incentive Plan		82,446,745		5,535,351		31,889		1,995,984

 

		One-Year		Two-Year		Three-Year		Abstentions		Broker Non-Votes
Proposal No. 5: Advisory (Non-Binding) Approval on Frequency of Vote on Named Executive Officer Compensation		84,607,211		3,718		3,379,523		23,533		1,995,984

In accordance with the Board’s recommendation as set forth in the Company’s proxy statement for the Annual Meeting and consistent with the stated preference of the Company’s shareholders, the Board has determined that future advisory shareholder votes on executive compensation will be conducted on an annual basis, until the next advisory vote on this matter is held.

 

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Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit Number	Description
99.1	Press release dated May 2, 2023
99.2	Supplemental Reporting Information as of and for the quarter ended March 31, 2023
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
May 5, 2023		Title:		Executive Vice President and Chief Financial Officer

 

 

 

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Exhibit 99.1

 

 

Jennifer Han

(914) 288-8100

 

ACADIA REALTY TRUST REPORTS FIRST QUARTER OPERATING RESULTS

RYE, NY (May 02, 2023) - Acadia Realty Trust (NYSE: AKR) (“Acadia” or the “Company”) today reported operating results for the quarter ended March 31, 2023. For the quarter ended March 31, 2023, net earnings per share was $0.14. 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, net property operating income ("NOI") and same-property NOI.

First Quarter and Recent Highlights

1

 

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“We are very pleased with a simple ‘beat and raise quarter’ with the upside driven by internal growth. Despite pressures from rising interest rates, we were able to achieve robust growth in the first quarter, which is reflective of the multi-year embedded growth that we see from our existing portfolio. Looking forward, we remain confident in meeting our internal growth expectations coming from lease-up, contractual rent steps, rebounding market rents and the execution of our value-add business plan on recently acquired properties,” stated Kenneth F. Bernstein, President and CEO of Acadia. “While we have visibility on the internal growth leading to earnings growth, we are also prepared to take advantage of external growth opportunities by leveraging our institutional relationships which will add further accretion to our earnings.”

 

CORE PORTFOLIO OPERATING RESULTS

 

The Company had net earnings per share of $0.14, NAREIT FFO per share of $0.40 and FFO Before Special Items per share of $0.40 for the quarter ended March 31, 2023. Please refer to the Consolidated Financial Results section below for additional details.

Driven by a combination of market rent growth, lease-up and contractual rent increases within its Street portfolio, the Company's same-property NOI, excluding redevelopments, increased 7.0% for the quarter ended March 31, 2023.

 

CORE PORTFOLIO LEASING UPDATE

During the quarter ended March 31, 2023, GAAP and cash leasing spreads were 22.3% and 9.9%, respectively, on 17 new and renewal leases aggregating approximately 55,000 square feet.

 

As of March 31, 2023, the Core Portfolio was 94.6% leased and 92.8% occupied. As of December 31, 2022, the Core Portfolio was 94.9% leased and 92.7% occupied. The leased rate includes space that is leased but not yet occupied and excludes development and redevelopment properties.

 

As previously announced, the Company placed its North Michigan Avenue assets within the Core Portfolio into redevelopment during the first quarter of 2023 (and thus are excluded from Core occupancy metrics).

Additionally, as part of its initial accretive acquisition plan, the Company successfully recaptured two below-market spaces with aggregate GLA of approximately 9,500 square feet during the first quarter of 2023 within its Henderson Avenue portfolio. The planned recapture contributed to a 730-bps decline in occupancy within the Company's Dallas portfolio. The recapture of these spaces will allow the Company to execute its value-add strategy to re-demise and re-tenant this site and is in advanced stages of lease negotiations at rents in excess of its initial underwriting.

 

As previously announced, during the quarter ended March 31, 2023, the Company signed a lease for the entirety of Bed Bath and Beyond store at Brandywine Town Center in Wilmington, Delaware. The space is being taken by the adjacent tenant, Dick's Sporting Goods, which plans to open in the combined space a flagship House of Sport, its newest comprehensive format. As part of the expansion, Dick's Sporting Goods profitably executed a new 15-year lease covering the combined space. The Bed Bath and Beyond store at Brandywine is one of its two locations within the Company's Core Portfolio.

 

FUND TRANSACTIONAL ACTIVITY

Fund V

Mohawk Commons (Fund V). As previously announced, in January 2023, Fund V completed the acquisition of a 90% interest in Mohawk Commons in Schenectady, New York for $62.1 million in a joint venture with DLC Management. The investment, which was funded with a new non-recourse mortgage of $39.7 million, is expected to result in mid-teens leveraged returns. This grocery-anchored power center is currently 98% leased and is anchored by Lowe's and a shadow anchor, Target, along with other national junior anchors, including Burlington Coat Factory, PetSmart and Marshalls.

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Albertsons Special Dividend

As previously announced, on January 17, 2023, Albertsons Companies, Inc. ("Albertsons") announced that the State of Washington’s Supreme Court denied a motion by the Attorney General of the State of Washington to hear an appeal from the trial court’s denial of its request to enjoin the Company from paying its previously announced $6.85 per common share of the Special Dividend, originally scheduled to be paid November 7, 2022. Albertsons further announced that the temporary restraining order preventing the payment of the Special Divided was lifted as a result of the decision. Albertsons paid the Special Dividend on January 20, 2023. Acadia's share of the Special Dividend was approximately $11.3 million, or $0.11 per share, and was recognized in the first quarter of 2023 and is included in Net Promote and Other Transactional Income.

 

BALANCE SHEET

As of March 31, 2023, substantially all of the Core Portfolio debt was fixed or effectively fixed, inclusive of interest rate swap contracts at a blended rate of 4.25%.

CONSOLIDATED FINANCIAL RESULTS

A complete reconciliation, in dollars and per share amounts, of (i) net 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. Amounts discussed below are net of noncontrolling interests and all per share amounts are on a fully-diluted basis.

 

Net Income

 

Net income attributable to Acadia for the quarter ended March 31, 2023, was $13.1 million, or $0.14 per share, which included $11.3 million, or $0.11 per share, from the receipt of the Special Dividend.

 

Net income attributable to Acadia for the quarter ended March 31, 2022, was $16.6 million, or $0.18 per share, which included: (i) $8.3 million gain, or $0.08 per share, on dispositions and (ii) $3.6 million, or $0.04 per share, primarily from the unrealized mark-to-market holding gain on its investment in Albertsons supermarkets, offset by $0.9 million, or $0.01 per share for net acquisition and transaction costs from a Core acquisition.

FFO as Defined by NAREIT

 

FFO as defined by NAREIT for the quarter ended March 31, 2023 was $40.7 million, or $0.40 per share, which included $11.3 million, or $0.11 per share, from the receipt of the Special Dividend.

 

FFO as defined by NAREIT for the quarter ended March 31, 2022 was $35.4 million, or $0.36 per share, and included $3.6 million, or $0.04 per share, primarily from the unrealized mark-to-market holding gain on Albertsons and (ii) $1.5 million, or $0.01 per share from the Fund III disposition of its interest in Self Storage Management.

 

FFO Before Special Items

 

FFO Before Special Items for the quarter ended March 31, 2023 was $40.7 million, or $0.40 per share, which included $11.3 million, or $0.11 per share, from the receipt of the Special Dividend. The unrealized mark-to-market holding gain on Albertsons was insignificant for the quarter ended March 31, 2023. Therefore, FFO Before Special Items and FFO as defined by NAREIT for the quarter ended March 31, 2023 were both $0.40 per share.

 

FFO Before Special Items for the quarter ended March 31, 2022 was $32.7 million, or $0.33 per share, which excluded $3.6 million, or $0.04 per share, primarily from the unrealized mark-to-market holding gain on Albertsons offset by $0.9 million, or $0.01 per share for net acquisition and transaction costs from a Core acquisition.

 

3

 

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GUIDANCE

The Company increased its annual 2023 guidance as follows:

 

		2023 Guidance
		Revised		Prior
Net earnings per share attributable to Acadia		$0.16 to $0.23		$0.14 to $0.23
Depreciation of real estate and amortization of leasing costs (net of noncontrolling interest share)		$1.01		$1.01
Impairment charges (net of noncontrolling interest share)		—		—
Gain on disposition of properties (net of noncontrolling interest share)		—		—
Noncontrolling interest in Operating Partnership		0.02		0.02
NAREIT Funds from operations per share attributable to Common Shareholders and Common OP Unit holders		$1.19 to $1.26		$1.17 to $1.26
Unrealized holding loss (gain) (net of noncontrolling interest share)		—		—
Transaction and other related costs		—		—
Funds from operations Before Special Items per share attributable to Common Shareholders and Common OP Unit holders		$1.19 to $1.26		$1.17 to $1.26

CONFERENCE CALL

Management will conduct a conference call on Wednesday, May 3, 2023 at 10:00 AM ET to review the Company’s earnings and operating results. Participant registration and webcast information is listed below.

Live Conference Call:

Date: Wednesday, May 3, 2023

Time: 10:00 AM ET

Participant Registration: First Quarter 2023 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.

 

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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 accretion and guidance statements), including, but not limited to: (i) the economic, political and social impact of, and uncertainty surrounding the COVID-19 Pandemic or future pandemics, 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, disruptions and instability in the banking and financial services industries and rising inflation; (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 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; (xv) the loss of key executives; (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; and (xvii) the risk that the Company's restatement of certain of its previously issued consolidated financial statements or material weaknesses in internal controls could negatively affect investor confidence and raise reputational issues.

 

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, 2022, 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 to reflect any changes in the Company’s expectations with regard thereto or changes 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 (1)

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

 

		Three Months Ended March 31,
		2023				2022
Revenues
Rental income		$	80,737			$	79,467
Other			1,102				2,040
Total revenues			81,839				81,507
Operating expenses
Depreciation and amortization			33,173				33,713
General and administrative			9,946				11,937
Real estate taxes			11,479				11,280
Property operating			15,133				13,350
Total operating expenses			69,731				70,280
Gain on disposition of properties			—				28,815
Operating income			12,108				40,042
Equity in earnings of unconsolidated affiliates			29				3,130
Interest and other income			4,818				2,935
Realized and unrealized holding gains on investments and other			26,757				15,730
Interest expense			(21,587	)			(17,925	)
Income from continuing operations before income taxes			22,125				43,912
Income tax (provision) benefit			(123	)			185
Net income			22,002				44,097
Net loss attributable to redeemable noncontrolling interests			2,075				—
Net income attributable to noncontrolling interests			(10,717	)			(27,259	)
Net income attributable to Acadia		$	13,360			$	16,838
Less: net income attributable to participating securities			(243	)			(204	)
Net income attributable to Common Shareholders -    basic earnings per share		$	13,117			$	16,634
Income from continuing operations net of income attributable to participating securities for diluted earnings per share		$	13,117			$	16,634
Weighted average shares for basic earnings per share			95,189				93,286
Weighted average shares for diluted earnings per share			95,189				93,335
Net earnings per share - basic (2)		$	0.14			$	0.18
Net earnings per share - diluted (2)		$	0.14			$	0.18

 

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ACADIA REALTY TRUST AND SUBSIDIARIES

Reconciliation of Consolidated Net Income to Funds from Operations (1,3)

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

 

		Three Months Ended March 31,
		2023				2022
Net income attributable to Acadia		$	13,360			$	16,838
Depreciation of real estate and amortization of leasing costs (net of    noncontrolling interests' share)			26,444				24,313
(Gain) on disposition of properties (net of noncontrolling interests' share)			—				(6,876	)
Income attributable to Common OP Unit holders			794				998
Distributions - Preferred OP Units			123				123
Funds from operations attributable to Common Shareholders and Common OP Unit holders		$	40,721			$	35,396
Adjustments for Special Items:
Add back: Acquisition costs, net of bargain purchase gain			—				859
Unrealized holding (gain) (net of noncontrolling interest share) (4)			(66	)			(3,570	)
Funds from operations before Special Items attributable to Common Shareholders and Common OP Unit holders		$	40,655			$	32,685
Funds From Operations per Share - Diluted
Basic weighted-average shares outstanding, GAAP earnings			95,189				93,286
Weighted-average OP Units outstanding			6,885				5,313
Assumed conversion of Preferred OP Units to common shares			464				465
Assumed conversion of LTIP units and restricted share units to    common shares			1				312
Weighted average number of Common Shares and Common OP Units			102,539				99,376
Diluted Funds from operations, per Common Share and Common OP Unit		$	0.40			$	0.36
Diluted Funds from operations before Special Items, per Common Share and Common OP Unit		$	0.40			$	0.33

 

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ACADIA REALTY TRUST AND SUBSIDIARIES

Reconciliation of Consolidated Operating Income to Net Property Operating Income (“NOI”) (1)

(Dollars in thousands)

 

		Three Months Ended March 31,
		2023				2022
Consolidated operating income		$	12,108			$	40,042
Add back:
General and administrative			9,946				11,937
Depreciation and amortization			33,173				33,713
Less:
Above/below market rent, straight-line rent and other adjustments			(2,242	)			(6,757	)
Gain on disposition of properties			—				(28,815	)
Consolidated NOI			52,985				50,120
Redeemable noncontrolling interest in consolidated NOI			(1,217	)			—
Noncontrolling interest in consolidated NOI			(14,475	)			(15,877	)
Less: Operating Partnership's interest in Fund NOI included above			(5,037	)			(3,844	)
Add: Operating Partnership's share of unconsolidated    joint ventures NOI (5)			3,959				3,641
NOI - Core Portfolio		$	36,215			$	34,040

 

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ACADIA REALTY TRUST AND SUBSIDIARIES

Consolidated Balance Sheets (a)

(Dollars in thousands)

		As of
		March 31, 2023				December 31, 2022
ASSETS
Investments in real estate, at cost
Land		$	881,717			$	817,802
Buildings and improvements			2,995,451				2,987,594
Tenant improvements			235,442				216,899
Construction in progress			13,299				21,027
Right-of-use assets - finance leases			25,086				25,086
			4,150,995				4,068,408
Less: Accumulated depreciation and amortization			(749,627	)			(725,143	)
Operating real estate, net			3,401,368				3,343,265
Real estate under development			117,914				184,602
Net investments in real estate			3,519,282				3,527,867
Notes receivable, net			123,967				123,903
Investments in and advances to unconsolidated affiliates			191,552				291,156
Other assets, net			200,430				229,591
Right-of-use assets - operating leases, net			36,379				37,281
Cash and cash equivalents			17,125				17,158
Restricted cash			14,257				15,063
Marketable securities			34,227				—
Rents receivable, net			45,934				49,506
Assets of properties held for sale			11,057				11,057
Total assets		$	4,194,210			$	4,302,582
LIABILITIES
Mortgage and other notes payable, net		$	926,918			$	928,639
Unsecured notes payable, net			647,101				696,134
Unsecured line of credit			172,587				168,287
Accounts payable and other liabilities			191,837				196,491
Lease liability - operating leases, net			34,361				35,271
Dividends and distributions payable			18,498				18,395
Distributions in excess of income from, and investments in, unconsolidated affiliates			9,376				10,505
Total liabilities			2,000,678				2,053,722
Commitments and contingencies
Redeemable noncontrolling interests			63,269				67,664
EQUITY
Acadia Shareholders' Equity
Common shares, $0.001 par value per share, authorized 200,000,000 shares, issued and outstanding 95,207,514 and 95,120,773 shares, respectively			95				95
Additional paid-in capital			1,945,157				1,945,322
Accumulated other comprehensive income			30,003				46,817
Distributions in excess of accumulated earnings			(304,173	)			(300,402	)
Total Acadia shareholders’ equity			1,671,082				1,691,832
Noncontrolling interests			459,181				489,364
Total equity			2,130,263				2,181,196
Total liabilities, equity and redeemable noncontrolling interests		$	4,194,210			$	4,302,582

 

9

 

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ACADIA REALTY TRUST AND SUBSIDIARIES

Notes to Financial Highlights:

 

10

 

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Exhibit 99.2

EALTY TRUST—Q220SUPPLEMENTAL REPFORMATIO

 

 

 

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Table of Contents			Supplemental Report – March 31, 2023
Section I – First Quarter 2023 Earnings Press Release
Section II – Financial Information			Section III – Core Portfolio Information
Company Information	3		Core Properties		0
Market Capitalization	4		Core Top Tenants		33
Operating Statements			Core Lease Expirations		34
Consolidated Income Statements	5		Core New and Renewal Rent Spreads		35
Income Statement - Pro-rata Adjustments	7		Core Capital Expenditures		36
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		37
Fee Income	14		Fund Properties		39
Structured Financing	15		Fund Lease Expirations		42
			Development and Redevelopment Activity		43
Other Information
Transactional Activity	16
2023 Guidance	17
Net Asset Valuation Information	18
Selected Financial Ratios	19		Section V – Other Information
Debt Analysis
Summary	22		Important Notes		45
Detail	23
Maturities	25
Interest Rate Summary	27

 

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

 

 

 

 

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Supplemental Report – March 31, 2023				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		Stuart Seeley		Symbol AKR
		Suite 300		Senior Managing Director of Strategy & Public Markets
		Rye, NY 10580
				Jennifer Han
				Director, Reporting & Investor Relations
				(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		Craig Mailman - (212) 816-4471		Todd Thomas - (917) 368-2286
		craig.schmidt@bofa.com		craig.mailman@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

 

 

	3

 

 

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	Market Capitalization
Supplemental Report – March 31, 2023	(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			95,208							Balance at 12/31/2022			95,121				5,134				100,255
Common Operating Partnership ("OP") Units			5,418							Vesting RS and LTIPs			8				321				329
Combined Common Shares and OP Units			100,626							OP Conversions			37				(37	)			—
										Other			42				—				42
Share Price at March 31, 2023		$	13.95							Balance at 3/31/2023			95,208				5,418				100,626				95,189				95,189				102,539				102,539
Equity Capitalization - Common Shares and OP Units		$	1,403,733
Preferred OP Units 2			6,471
Total Equity Capitalization			1,410,204			50%		50%
Debt Capitalization
Consolidated debt 3			1,758,133
Adjustment to reflect pro-rata share of debt			(336,993	)
Total Debt Capitalization			1,421,140			50%		50%
Total Market Capitalization		$	2,831,344			100%		100%

__________

 

 

	4

 

 

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	Consolidated Income Statement
Supplemental Report – March 31, 2023	(in thousands)

 

		March 31, 2023 1					March 31, 2023 1
CONSOLIDATED INCOME STATEMENT		Quarter					Quarter
Revenues						Reconciliation of Property Revenues to Consolidated GAAP Revenues
Rental income		$	80,737			Total Property Revenues	$	79,601
Other			1,102			Straight-line rent income		295
Total revenues			81,839			Above/below-market rent income		1,605
Operating expenses						Asset and property management fees		224
Depreciation and amortization			33,173			Development, construction, leasing and legal fees		70
General and administrative			9,946			Other		44
Real estate taxes			11,479			Consolidated Total Revenues	$	81,839
Property operating			15,133
Total operating expenses			69,731			Reconciliation of Property Operating Expenses
						to Consolidated GAAP Expenses
Operating income			12,108			Property operating - CAM	$	11,798
Equity in earnings of unconsolidated affiliates			29			Other property operating (Non-CAM)		3,161
Interest and other income			4,818			Asset and property management expense		174
Realized and unrealized holding gains on investments and other			26,757			Consolidated Total Property Operating Expenses	$	15,133
Interest expense			(21,587	)
Income from continuing operations before income taxes			22,125
Income tax provision			(123	)
Net income			22,002
Net loss attributable to redeemable noncontrolling interests			2,075
Net income attributable to noncontrolling interests			(10,717	)
Net income attributable to Acadia		$	13,360

 

 

 

5

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	Consolidated Income Statement - Detail
Supplemental Report – March 31, 2023	(in thousands)

 

		March 31, 2023 1
CORE PORTFOLIO AND FUND INCOME		Quarter
PROPERTY REVENUES
Minimum rents		$	62,289
Percentage rents			709
Expense reimbursements - CAM			7,775
Expense reimbursements - Taxes			8,081
Other property income			747
Total Property Revenues			79,601
PROPERTY EXPENSES
Property operating - CAM			11,802
Other property operating (Non-CAM)			3,161
Real estate taxes			11,479
Asset and property management expense			174
Total Property Expenses			26,616
NET OPERATING INCOME - PROPERTIES			52,985
OTHER INCOME (EXPENSE)
Interest income			4,818
Straight-line rent income (expense)			295
Above/below-market rent income (expense)			1,605
Interest expense 2			(20,004	)
Amortization of finance costs			(1,516	)
Above/below-market interest income (expense)			26
Finance lease interest expense			(93	)
Other (expense) income			327
CORE PORTFOLIO AND FUND INCOME			38,443
FEE AND OTHER INCOME 3
Asset and property management fees			224
Development, construction, leasing and legal fees			70
Total Fund Fees			294
Net promote and other transactional income			28,207
Total Fund Fees, Net Promote and Other Transactional Income			28,501
Realized and unrealized holding losses on investments and other			(1,729	)
Income tax provision			(123	)
Total Fee and Other (Loss) Income			26,649
General and Administrative			(9,946	)
Depreciation and amortization			(33,086	)
Non-real estate depreciation and amortization			(87	)
Gain (loss) before equity in earnings and noncontrolling interests			21,973
Equity in earnings of unconsolidated affiliates			29
Noncontrolling interests (including redeemable noncontrolling interests)			(8,642	)
NET INCOME ATTRIBUTABLE TO ACADIA		$	13,360

 

 

6

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	Income Statement – Pro-Rata Adjustments
Supplemental Report – March 31, 2023	(in thousands)

 

		Quarter Ended March 31, 2023
CORE PORTFOLIO AND FUND INCOME		Noncontrolling Interest in Consolidated Subsidiaries 4				Company’s Interest in Unconsolidated Subsidiaries 5
PROPERTY REVENUES
Minimum rents		$	(25,327	)		$	13,530
Percentage rents			(218	)			219
Expense reimbursements - CAM			(3,594	)			1,576
Expense reimbursements - Taxes			(2,980	)			2,646
Other property income			(329	)			91
Total Property Revenues			(32,448	)			18,062
PROPERTY EXPENSES
Property operating - CAM			(5,047	)			2,064
Other property operating (Non-CAM)			(835	)			288
Real estate taxes			(4,058	)			2,750
Asset and property management expense			(478	)			579
Total Property Expenses			(10,418	)			5,681
NET OPERATING INCOME - PROPERTIES			(22,030	)			12,381
OTHER INCOME (EXPENSE)
Interest income			(48	)			10
Straight-line rent income (expense)			(333	)			231
Above/below-market rent income (expense)			(706	)			1,188
Interest expense			10,418				(5,573	)
Amortization of finance costs			776				(345	)
Above/below-market interest income (expense)			—				21
Finance lease interest expense			39				(4	)
Other income (expense)			(311	)			10
CORE PORTFOLIO AND FUND INCOME			(12,195	)			7,919
FEE AND OTHER INCOME 3
Asset and property management fees			2,589				147
Development, construction, leasing and legal fees			1,127				398
Total Fund Fees			3,716				545
Net promote and other transactional income			(16,924	)			—
Total Fund Fees, Net Promote and Other Transactional Income			(13,208	)			545
Realized and unrealized holding gains on investments and other			1,927				—
Income tax provision			88				(4	)
Total Fee and Other (Loss) Income			(11,193	)			541
General and Administrative			625				(158	)
Depreciation and amortization			14,915				(8,273	)
(Loss) gain before equity in earnings and noncontrolling interests			(7,848	)			29
Equity in earnings of unconsolidated affiliates			—				—
Noncontrolling interests (including redeemable noncontrolling interests) 6			(794	)			—
NET (LOSS) INCOME ATTRIBUTABLE TO ACADIA		$	(8,642	)		$	29

 

 

 

	7

 

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	Balance Sheet
Supplemental Report – March 31, 2023	(in thousands)

 

ASSETS		Consolidated Balance Sheet				Line Item Details:
Real estate
Land		$	881,717			The components of Real estate under development, at cost are as follows:
Buildings and improvements			2,995,451			Core		$	56,210
Tenant improvements			235,442			Fund II			35,179
Construction in progress			13,299			Fund III			26,525
Right-of-use assets - finance leases			25,086			Total		$	117,914
			4,150,995
Less: Accumulated depreciation and amortization			(749,627	)
Total			3,401,368			Summary of other assets, net:
Real estate under development			117,914			Deferred charges, net		$	29,568
Operating real estate, net			3,519,282			Accrued interest receivable			19,922
Notes receivable, net			123,967			Due from seller			3,036
Investments in and advances to unconsolidated affiliates			191,552			Prepaid expenses			12,358
Lease intangibles, net			94,600			Other receivables			1,262
Other assets, net			105,830			Income taxes receivable			1,906
Right-of-use assets - operating leases, net			36,379			Corporate assets, net			1,200
Cash and cash equivalents			17,125			Deposits			711
Restricted cash			14,257			Derivative financial instruments			35,867
Marketable securities			34,227			Total		$	105,830
Straight-line rents receivable, net			35,156
Rents receivable, net			10,778
Assets of properties held for sale			11,057
Total assets		$	4,194,210
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgage and other notes payable, net		$	926,918			Summary of accounts payable and other liabilities:
Unsecured notes payable, net			647,101			Lease liability - finance leases, net		$	7,128
Unsecured line of credit			172,587			Accounts payable and accrued expenses			57,216
Accounts payable and other liabilities			115,524			Deferred income			33,132
Lease liability - operating leases, net			34,361			Tenant security deposits, escrow and other			16,877
Dividends and distributions payable			18,498			Derivative financial instruments			1,171
Lease intangibles, net			76,313			Total		$	115,524
Distributions in excess of income from, and investments in, unconsolidated affiliates			9,376
Total liabilities			2,000,678
Commitments and contingencies
Redeemable noncontrolling interests			63,269
Shareholders' Equity
Common shares			95
Additional paid-in capital			1,945,157
Accumulated other comprehensive income			30,003
Distributions in excess of accumulated earnings			(304,173	)
Total Acadia shareholders’ equity			1,671,082
Noncontrolling interests			459,181
Total equity			2,130,263
Total liabilities, equity and redeemable noncontrolling interests		$	4,194,210

 

 

	8

 

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	Balance Sheet – Pro-rata Adjustments7
Supplemental Report – March 31, 2023	(in thousands)

 

 

ASSETS		Noncontrolling Interest in Consolidated Subsidiaries 4				Company’s Interest in Unconsolidated Subsidiaries 5
Real estate
Land		$	(213,777	)		$	68,773
Buildings and improvements			(733,531	)			242,182
Tenant improvements			(44,353	)			19,890
Construction in progress			(2,981	)			1,022
Right-of-use assets - finance leases			(2,346	)			22,382
			(996,988	)			354,249
Less: Accumulated depreciation and amortization			120,688				(68,877	)
Total			(876,300	)			285,372
Real estate under development			(34,605	)			16,491
Operating real estate, net			(910,905	)			301,863
Notes receivable, net			65,403				—
Investments in and advances to unconsolidated affiliates			(86,591	)			(100,774	)
Lease intangibles, net			(29,998	)			11,223
Other assets, net			7,395				6,580
Right-of-use assets - operating leases, net			(1,940	)			—
Cash and cash equivalents			(8,775	)			7,328
Restricted cash			(10,055	)			3,385
Marketable securities			—				—
Straight-line rents receivable, net			(7,808	)			5,061
Rents receivable, net			(2,401	)			1,742
Total assets		$	(985,675	)		$	236,408
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgage and other notes payable, net		$	(538,078	)		$	205,107
Unsecured notes payable, net			(1,457	)			—
Unsecured line of credit			—				—
Accounts payable and other liabilities			(28,470	)			25,506
Lease intangibles, net			(24,689	)			7,353
Lease liability - operating leases, net			(2,032	)			4
Dividends and distributions payable			—				—
Lease liability - finance leases			(2,951	)			7,814
Distributions in excess of income from, and investments in, unconsolidated affiliates			—				(9,376	)
Total liabilities			(597,677	)			236,408
Shareholders' Equity
Common shares			—				—
Additional paid-in capital			—				—
Accumulated other comprehensive income			—				—
Distributions in excess of accumulated earnings			—				—
Total Acadia shareholders’ equity			—				—
Noncontrolling interests (including redeemable noncontrolling interests)			(387,998	)			—
Total equity			(387,998	)			—
Total liabilities, equity and redeemable noncontrolling interests		$	(985,675	)		$	236,408

 

 

 

	9

 

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	Notes to Income Statements, Balance Sheet and Pro-rata Adjustments7
Supplemental Report – March 31, 2023	(in thousands)

 

__________

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

 

 

	10

 

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	Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”)
Supplemental Report – March 31, 2023	(in thousands)

 

		Quarter Ended				Quarter Ended
		March 31, 2023				March 31, 2022
Funds from operations ("FFO"):
Net Income attributable to Acadia		$	13,360			$	16,838
Depreciation of real estate and amortization of leasing costs (net of noncontrolling interest share)			26,444				24,313
Gain on disposition on real estate properties (net of noncontrolling interest share)			—				(6,876	)
Income attributable to noncontrolling interests' share in Operating Partnership			917				1,121
FFO to Common Shareholders and Common OP Unit holders		$	40,721			$	35,396
Add back: acquisition costs, net of bargain purchase gain			—				859
Unrealized holding gain (net of noncontrolling interest share)			(66	)			(3,570	)
FFO before Special Items attributable to Common Shareholder and Common OP Unit holders 1		$	40,655			$	32,685
Adjusted Funds from operations ("AFFO"):
FFO		$	40,721			$	35,396
Unrealized gains			(66	)			(3,570	)
Straight-line rent, net			(193	)			(2,707	)
Above/below-market rent			(2,087	)			(1,965	)
Amortization of finance costs			1,085				807
Above/below-market interest			(47	)			(47	)
Non-real estate depreciation			87				90
Stock-based compensation			3,776				3,887
Leasing commissions			(1,507	)			(1,053	)
Tenant improvements			(4,805	)			(3,403	)
Maintenance capital expenditures			(690	)			(638	)
AFFO to Common Shareholders and Common OP Unit holders		$	36,274			$	26,797
Total weighted-average diluted shares and OP Units			102,539				99,376
Diluted FFO per Common share and OP Unit:
FFO		$	0.40			$	0.36
FFO before Special Items		$	0.40			$	0.33

 

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11

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	EBITDA
Supplemental Report – March 31, 2023	(in thousands)

 

		Quarter Ended March 31, 2023												Quarter Ended March 31, 2022
		Core												Core
		Portfolio				Funds				Total				Portfolio				Funds				Total
EBITDA:
Net Income Attributable to Acadia		$	5,160			$	8,200			$	13,360			$	9,943			$	6,895			$	16,838
Adjustments:
Depreciation and amortization			20,043				6,488				26,531				19,617				4,786				24,403
Interest expense			11,653				3,506				15,159				8,387				2,469				10,856
Amortization of finance costs			681				404				1,085				605				202				807
Above/below-market interest			(47	)			—				(47	)			(47	)			—				(47	)
Gain on disposition of properties			—				—				—				—				(6,876	)			(6,876	)
Unrealized holding gains on investment in Albertsons and other			(66	)			—				(66	)			(3,570	)			—				(3,570	)
Acquisition costs, net of bargain purchase gain			—				—				—				859				—				859
Provision (benefit) for income taxes			22				17				39				(249	)			15				(234	)
Noncontrolling interest - OP			794				—				794				998				—				998
EBITDA		$	38,240			$	18,615			$	56,855			$	36,543			$	7,491			$	44,034
Adjusted EBITDA:
EBITDA		$	38,240			$	18,615			$	56,855			$	36,543			$	7,491			$	44,034
Stock based compensation			3,776				—				3,776				3,887				—				3,887
Adjusted EBITDA		$	42,016			$	18,615			$	60,631			$	40,430			$	7,491			$	47,921

 

 

 

 

 

12

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	Core Portfolio – Same Property Performance 1
Supplemental Report – March 31, 2023	(in thousands)

 

		Quarter Ended								Change
		March 31, 2023				March 31, 2022				Favorable/ (Unfavorable)
Summary
Minimum rents		$	30,937			$	29,688				4.2	%
Expense reimbursements			8,860				8,180				8.3	%
Other property income			1,011				599				68.8	%
Total Revenue			40,808				38,467				6.1	%
Expenses
Property operating - CAM & Real estate taxes			11,787				11,358				(3.8	)%
Other property operating (Non-CAM)			837				757				(10.6	)%
Total Expenses			12,624				12,115				(4.2	)%
Same Property NOI - Core properties		$	28,184			$	26,352				7.0	%
Reconciliation of Same Property NOI to Core NOI
NOI of Properties excluded from Same Property NOI			8,031				7,688
Core NOI 2		$	36,215			$	34,040
Other same property information
Physical Occupancy at the end of the period			92.8	%			90.0	%
Leased Occupancy at the end of the period			94.7	%			93.9	%

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to Ne

13

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	Fee Income by Fund 1
Supplemental Report – March 31, 2023	(in thousands)

 

		Fund II				Fund III				Fund IV				Fund V				Other				Total
Quarter Ended March 31, 2023
Asset and property management fees		$	69			$	20			$	810			$	1,878			$	183			$	2,960
Development, construction, leasing and legal fees			212				35				285				1,003				60				1,595
Total fees		$	281			$	55			$	1,095			$	2,881			$	243			$	4,555

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14

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	Structured Financing Portfolio
Supplemental Report – March 31, 2023	(in thousands)

 

		December 31, 2022												Quarter Ended March 31, 2023																				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 2,3		$	59,801			$	3,809			$	63,610			$	—			$	—			$	59,801			$	3,809			$	63,610				5.99	%			6.39	%		Sept-24
Other notes3			130,945				16,132				147,077				—				—				130,945				20,051				150,996				11.36	%			11.46	%		Jan-24 to Dec-27
Total Core notes receivable		$	190,746			$	19,941			$	210,687			$	—			$	—			$	190,746			$	23,860			$	214,606				9.67	%			9.87	%
__________
Reconciliation of Notes Receivable to the Pro-Rata Balance Sheet:
Total Notes Receivable per above																						$	190,746
Fund Notes Receivable																							—
Allowance for credit loss																							(1,376	)
Total Pro-rata Notes Receivable																						$	189,370

 

________

 

 

 

 

 

 

 

 

 

15

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	Transactional Activity
Supplemental Report – March 31, 2023	(in thousands)

 

PROPERTY ACQUISITIONS AND DISPOSITIONS

Property Name

Location

Date of Transaction

Transaction Amount

Ownership % 1

Fund Share

Acadia Share

ACQUISITIONS 2

Fund V:

Mohawk Commons

Schenectady, NY

January 27, 2023

$

62,078

90.00

%

$

55,870

$

11,230

 

 

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16

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	2023 Guidance1
Supplemental Report – March 31, 2023

 

 

 

 

 

		2023 Guidance
		Revised		Prior
Net earnings per share attributable to Acadia		$0.16 to $0.23		$0.14 to $0.23
Depreciation of real estate and amortization of leasing costs (net of noncontrolling interest share)		$1.01		$1.01
Impairment charges (net of noncontrolling interest share)		—		—
Gain on disposition of properties (net of noncontrolling interest share)		—		—
Noncontrolling interest in Operating Partnership		0.02		0.02
NAREIT Funds from operations per share attributable to Common Shareholders and Common OP Unit holders		$1.19 to $1.26		$1.17 to $1.26
Unrealized holding loss (gain) (net of noncontrolling interest share)		—		—
Transaction and other related costs		—		—
Funds from operations Before Special Items per share attributable to Common Shareholders and Common OP Unit holders		$1.19 to $1.26		$1.17 to $1.26

________

 

17

---

 

 

 

	Net Asset Valuation Information
Supplemental Report – March 31, 2023	(in thousands)

 

		CORE				FUND II 2				FUND III				FUND IV				FUND V				Total
Acadia Ownership Percentage		N/A					61.67	%			24.54	%			23.12	%			20.10	%
Current Quarter NOI
At Pro Rata 1
Net Operating Income 2, 3		$	36,215			N/A6				$	109			$	861			$	4,419			$	41,604
Less:
Net operating (income) loss from properties sold or under contract			5			N/A6					(8	)			(15	)			—				(18	)
Net operating (income) loss from pre-stabilized assets, development and redevelopment projects 4, 5			(5,692	)		N/A 6					(101	)			(101	)			—				(5,894	)
Net Operating Income of stabilized assets		$	30,528			N/A				$	—			$	745			$	4,419			$	35,692
Costs to Date (Pro Rata)
Pre-stabilized assets 4		$	—			N/A 6				$	13,880			$	40,236			$	—			$	54,116
Development and redevelopment projects 5			689,600			N/A 6					6,528				26,958				—				723,086
Total Costs to Date 5		$	689,600			N/A 6				$	20,408			$	67,194			$	—			$	777,202
Debt (Pro Rata)		$	1,152,928			$	77,597			$	8,827			$	45,166			$	136,622			$	1,421,140

_________

 

18

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	Selected Financial Ratios
Supplemental Report – March 31, 2023	(in thousands)

 

		Quarter Ended March 31,										Quarter Ended
COVERAGE RATIOS 1		2023				2022				LEVERAGE RATIOS		March 31, 2023				December 31, 2022
Fixed-Charge Coverage Ratios										Debt/Market Capitalization Ratios
EBITDA 2 divided by:		$	38,240			$	36,543			Debt + Preferred Equity (Preferred OP Units)		$	1,427,611			$	1,421,159
Interest expense			11,653				8,387			Total Market Capitalization			2,831,344				2,859,818
Principal Amortization			877				1,036			Debt + Preferred Equity/
Preferred Dividends 3			123				123			Total Market Capitalization			50	%			50	%
Fixed-Charge Coverage Ratio - Core Portfolio			3.0	x			3.8	x
EBITDA divided by:		$	56,855			$	44,034			Net debt 6		$	1,411,933			$	1,404,288
Interest expense			15,159				10,856			Total Market Capitalization			2,831,344				2,859,818
Principal Amortization			1,242				1,261			Net Debt + Preferred Equity/
Preferred Dividends			123				123			Total Market Capitalization			50	%			49	%
Fixed-Charge Coverage Ratio - Core Portfolio and Funds			3.4	x			3.6	x		Debt/EBITDA Ratios
										Core:
Payout Ratios										Debt		$	1,046,882			$	1,043,395
										Net debt 5			1,035,148				1,030,572
Dividends declared (per share/OP Unit)		$	0.18			$	0.18			EBITDA			152,960				150,993
										Adjusted EBITDA			163,771				161,359
Dividends (Shares) & Distributions (OP Units) declared		$	18,474			$	18,295			Debt/EBITDA - Core Portfolio			6.8	x			6.9	x
FFO			40,721				35,396			Debt/Adjusted EBITDA - Core Portfolio			6.4	x			6.5	x
FFO Payout Ratio 8			45	%			52	%		Net Debt/EBITDA - Core Portfolio			6.8	x			6.8	x
										Net Debt/ Adjusted EBITDA - Core Portfolio			6.3	x			6.4	x
AFFO 7			36,274				26,797			Core and Funds:
AFFO Payout Ratio			51	%			68	%		Debt 4		$	1,421,140			$	1,414,502
										Net debt 6			1,405,462				1,397,631
FFO Before Special Items			40,655				32,685			EBITDA			193,571				176,136
FFO Before Special Items Payout Ratio			45	%			56	%		Adjusted EBITDA			204,382				186,502
										Debt/EBITDA - Core and Funds			7.3	x			8.0	x
										Debt/Adjusted EBITDA - Core and Funds			7.0	x			7.6	x
										Net Debt/EBITDA - Core and Funds			7.3	x			7.9	x
										Net Debt/ Adjusted EBITDA - Core and Funds			6.9	x			7.5	x

 

 

19

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	Selected Financial Ratios
Supplemental Report – March 31, 2023	(in thousands)

 

		EBITDA								ADJUSTED EBITDA
		Quarter Ended				Year Ended				Quarter Ended				Year Ended
Reconciliation of EBITDA to Annualized EBITDA		March 31, 2023				December 31, 2022				March 31, 2023				December 31, 2022
Quarter Core EBITDA as reported		$	38,240			$	150,993			$	38,240			$	150,993
Add back: Stock-based compensation, net of employee equity elections			—				—				2,345				10,366
Subtotal			38,240				150,993				40,585				161,359
Core EBITDA		$	152,960			$	150,993			$	162,340			$	161,359
Add: Employee election to receive equity in lieu of cash in Q1			—				—				1,431				—
Annualized Core EBITDA			152,960				150,993				163,771				161,359
Funds EBITDA as reported			18,615				25,143				18,615				25,143
Subtract: Special Dividend			(11,283	)			—				(11,283	)			—
Subtotal			7,332				25,143				7,332				25,143
Annualized Fund EBITDA			29,328				25,143				29,328				25,143
Add back: Special Dividend			11,283				—				11,283				—
Annualized Fund EBITDA			40,611				25,143				40,611				25,143
EBITDA Core and Funds		$	193,571			$	176,136			$	204,382			$	186,502

 

		Quarter Ended
Reconciliation of Core Portfolio Debt		March 31, 2023
Core Portfolio Debt per Debt Summary		$1,152,928
Incremental Core Debt Attributable to City Point8		(106,046)
Adjusted Core Debt for purposes of computing Debt/EBITDA		1,046,882
Fund Portfolio Debt per Debt Summary		268,212
Incremental Core Debt Attributable to City Point8		106,046
Adjusted Fund Debt per EBITDA		374,258
Total Core and Fund Debt for purposes of computing Debt/EBITDA		$1,421,140

 

 

 

20

---

 

 

	Selected Financial Ratios
Supplemental Report – March 31, 2023	(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.

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.

8. Amount represents the Company's reallocation of its pro-rata portion of the de-leveraging of Fund II's property-level debt associated with the City Point refinancing to align with the inclusion of the associated EBITDA derived from its investment.

21

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	Portfolio Debt – Summary
Supplemental Report – March 31, 2023	(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		$	806,000				4.3	%			3.6			$	—				—				—			$	806,000				57	%			4.3	%			3.6			$	—			$	—			$	806,000
Variable-Rate Debt 5			16,587				6.3	%			2.3				367				6.7	%			0.1				16,954				1	%			6.3	%			2.3				1,457				—				18,411
																															58	%
Mortgage and Other Notes Payable
Fixed-Rate Debt 1			313,504				4.2	%			3.2				136,518				4.6	%			2.0				450,022				32	%			4.7	%			2.8				294,637				(166,934	)			577,725
Variable-Rate Debt 5			16,837				6.6	%			0.4				131,327				7.4	%			1.7				148,164				10	%			7.3	%			1.6				246,867				(39,034	)			355,997
																															42	%
Total		$	1,152,928				4.3	%			3.4			$	268,212				6.0	%			1.9			$	1,421,140				100	%			4.6	%			3.1			$	542,961			$	(205,968	)			1,758,133
Unamortized premium																											531																								317
Net unamortized loan costs																											(9,493	)																							(11,844	)
Total																										$	1,412,178																							$	1,746,606

_________

22

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	Portfolio Debt – Detail
Supplemental Report – March 31, 2023	(in thousands)

 

 

 

				Principal Balance at				Acadia's Pro-rata Share								Interest				Extension
Property				March 31, 2023				Percent				Amount				Rate		Maturity Date		Options
CORE PORTFOLIO
Fixed-Rate Debt
163 Highland Avenue				$	7,609				100.00	%			7,609			4.66%		02/01/24		None
Crossroads Shopping Center					60,512				49.00	%			29,651			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
239 Greenwich Avenue					26,000				75.00	%			19,500			4.00%		07/10/27		None
Georgetown Portfolio (2008 Investment)					14,781				50.00	%			7,391			4.72%		12/10/27		None
State & Washington					21,888				100.00	%			21,888			4.40%		09/05/28		None
North & Kingsbury					10,778				100.00	%			10,778			4.01%		11/05/29		None
151 North State Street					12,480				100.00	%			12,480			4.03%		12/01/29		None
Concord & Milwaukee					2,371				100.00	%			2,371			4.40%		06/01/30		None
California & Armitage					2,218				100.00	%			2,218			5.89%		04/15/35		None
Unsecured interest rate swaps 1					806,000				100.00	%			806,000			n/a		Various
Secured interest rate swaps 1					147,595				50.56	%			74,622			n/a		Various
Sub-Total Fixed-Rate Debt					1,245,732								1,119,504			4.25%
Secured Variable-Rate Debt
Gotham Plaza					17,595				49.00	%			8,622			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
Sullivan Center					50,000				100.00	%			50,000			SOFR+160		11/16/28		None
Secured interest rate swaps 1					(147,595	)			50.56	%			(74,622	)		n/a		Various
Unsecured Variable-Rate Debt
Unsecured Line of Credit 3					172,587				100.00	%			172,587			SOFR+150		06/29/25		2 x 6 mos.
Unsecured Term Loan					400,000				100.00	%			400,000			SOFR+165		06/29/26		None
Unsecured $175 Million Term Loan					175,000				100.00	%			175,000			SOFR+160		04/06/27		None
Unsecured $75 Million Term Loan					75,000				100.00	%			75,000			SOFR+205		07/29/29		None
Unsecured interest rate swaps 1					(806,000	)			100.00	%			(806,000	)		n/a		Various
Sub-Total Variable-Rate Debt					100,773								33,424			6.47%
Total Debt - Core Portfolio				$	1,346,505							$	1,152,928			4.32%
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			15,707				20.81	%			3,269			3.75%		06/01/26		None
Shoppes at South Hills 4		Fund V			31,796				18.09	%			5,752			5.95%		03/01/28		1x12 mos.
Interest rate swaps 1		Funds II, IV & V			524,200				23.06	%			120,872			n/a		Various
Sub-Total Fixed-Rate Debt					604,624								136,518			4.61%
Variable-Rate Debt
Broughton Street Portfolio		Fund IV			25,358				23.12	%			5,863			SOFR+310		04/28/23		None
New Towne Center		Fund V			14,604				20.10	%			2,935			LIBOR+220		05/01/23		None
Acadia Strategic Opportunity Fund V LLC		Fund V			1,824				20.10	%			367			SOFR+187		05/01/23		1x12 mos.
Eden Square 4		Fund IV			22,028				22.78	%			5,018			SOFR+235		06/01/23		None
Fairlane Green		Fund V			32,723				20.10	%			6,577			SOFR+200		06/05/23		None

23

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	Portfolio Debt – Detail
Supplemental Report – March 31, 2023	(in thousands)

 

				Principal Balance at				Acadia's Pro-rata Share								Interest				Extension
Property				March 31, 2023				Percent				Amount				Rate		Maturity Date		Options
Trussville Promenade		Fund V			28,742				20.10	%			5,777			SOFR+195		06/15/23		None
640 Broadway		Fund III			35,970				24.54	%			8,827			SOFR+335		07/09/23		None
146 Geary Street		Fund IV			19,338				23.12	%			4,471			LIBOR+365		07/15/23		None
Restaurants at Fort Point		Fund IV			5,829				23.12	%			1,348			SOFR+245		11/25/23		None
717 N. Michigan Avenue		Fund IV			48,500				23.12	%			11,213			SOFR+318		12/09/23		None
Acadia Strategic Opportunity IV LLC		Fund IV			39,200				23.12	%			9,063			SOFR+256		12/29/23		None
Elk Grove Commons		Fund V			40,665				20.10	%			8,174			SOFR+161		01/11/24		None
Hiram Pavilion		Fund V			28,179				20.10	%			5,664			SOFR+200		03/05/24		None
Hickory Ridge		Fund V			28,151				20.10	%			5,658			SOFR+200		10/05/24		None
Tri-City Plaza 4		Fund V			38,519				18.09	%			6,968			LIBOR+190		10/18/24		1 x 12 mos.
Landstown Commons		Fund V			60,506				20.10	%			12,162			SOFR+180		10/24/24		None
Lincoln Commons		Fund V			38,575				20.10	%			7,754			SOFR+180		10/24/24		None
Palm Coast Landing		Fund V			26,273				20.10	%			5,281			LIBOR+175		11/01/24		None
Frederick Crossing 4		Fund V			24,029				18.09	%			4,347			LIBOR+175		12/02/24		1 x 12 mos.
Plaza Santa Fe		Fund V			22,893				20.10	%			4,601			SOFR+200		12/20/24		None
Paramus Plaza 4		Fund IV			28,420				11.56	%			3,285			SOFR+236		12/28/24		2 x 12 mos.
Frederick County Square 4		Fund V			22,301				18.09	%			4,034			LIBOR+240		01/01/25		1 x 12 mos.
Wood Ridge Plaza 4		Fund V			32,536				18.09	%			5,886			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.
City Point 4		Fund II			133,655				58.06	%			77,597			SOFR+261		08/01/25		1 x 12 mos.
1964 Union Street 4		Fund IV			1,374				20.80	%			286			LIBOR+225		10/01/25		None
2208-2216 Fillmore Street 4		Fund IV			5,372				20.80	%			1,117			LIBOR+225		06/01/26		None
Monroe Marketplace		Fund V			29,150				20.10	%			5,859			SOFR+276		11/12/26		None
La Frontera Village 4		Fund V			55,500				18.09	%			10,040			SOFR+261		06/10/27		None
Riverdale 4		Fund V			37,272				17.97	%			6,699			SOFR+246		11/01/27		None
Mohawk Commons 4		Fund V			39,650				18.09	%			7,173			SOFR+200		03/01/28		None
Interest rate swaps 1		Funds II, IV & V			(524,200	)			23.06	%			(120,872	)		n/a		Various
Sub-Total Variable-Rate Debt					485,336								131,694			7.44%
Total Debt - Funds					1,089,960								268,212			6.00%
Total Debt - Core Portfolio and Funds				$	2,436,465							$	1,421,140			4.63%

_________

 

24

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	Future Debt Maturities 1
Supplemental Report – March 31, 2023	(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
2023		$3,031		$177,496		$180,527		$2,260		$40,573		$42,833		4.08%		4.08%		n/a
2024		3,371		69,855		73,226		2,565		36,756		39,321		4.18%		4.09%		8.00%
2025		2,571		306,087		308,658		2,264		297,583		299,847		4.27%		4.27%		n/a
2026		2,920		400,000		402,920		2,542		400,000		402,542		4.34%		4.34%		n/a
2027		2,727		212,537		215,264		2,423		200,052		202,475		4.32%		4.32%		n/a
Thereafter		4,339		161,571		165,910		4,339		161,571		165,910		4.38%		4.38%		n/a
Total		$18,959		$1,327,546		$1,346,505		$16,393		$1,136,535		$1,152,928
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
2023		$5,304		$305,628		$310,932		$1,022		$67,791		$68,813		6.64%		4.83%		7.48%
2024		5,371		328,413		333,784		1,011		62,419		63,430		3.99%		3.41%		6.63%
2025		1,878		231,739		233,617		356		96,257		96,613		6.58%		4.75%		6.86%
2026		2,094		48,362		50,456		385		9,857		10,242		6.26%		3.75%		7.35%
2027		2,057		91,074		93,131		372		16,434		16,806		6.26%		6.11%		6.50%
Thereafter		199		67,841		68,040		36		12,272		12,308		5.87%		5.87%		n/a
Total		$16,903		$1,073,057		$1,089,960		$3,182		$265,030		$268,212

________

 

 

25

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	Future Debt Maturities – As Extended 1
Supplemental Report – March 31, 2023	(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
2023		$3,031		$177,496		$180,527		$2,260		$40,573		$42,833		4.08%		4.08%		n/a
2024		3,371		69,855		73,226		2,565		36,756		39,321		4.18%		4.09%		8.00%
2025		2,571		133,500		136,071		2,264		124,996		127,260		4.18%		4.18%		n/a
2026		2,920		572,587		575,507		2,542		572,587		575,129		4.34%		4.34%		n/a
2027		2,989		187,402		190,391		2,620		181,201		183,821		4.35%		4.35%		n/a
Thereafter		6,331		184,452		190,783		5,830		178,734		184,564		4.34%		4.34%		n/a
Total		$21,213		$1,325,292		$1,346,505		$18,081		$1,134,847		$1,152,928
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
2023		$5,304		$303,804		$309,108		$1,022		$67,425		$68,447		6.64%		4.83%		7.49%
2024		5,548		241,567		247,115		1,041		48,555		49,596		3.97%		3.50%		6.20%
2025		4,048		62,323		66,371		723		11,339		12,062		3.22%		3.13%		7.11%
2026		3,095		272,628		275,723		542		102,940		103,482		6.48%		4.57%		6.82%
2027		2,163		121,440		123,603		391		21,926		22,317		6.73%		6.11%		7.25%
Thereafter		923		67,117		68,040		167		12,141		12,308		5.87%		5.87%		n/a
Total		$21,081		$1,068,879		$1,089,960		$3,886		$264,326		$268,212

__________

.

26

---

 

	Swap Interest Rate Summary 1
Supplemental Report – March 31, 2023	(in thousands)

 

Core Portfolio
		Acadia's Pro-rata				Weighted Average
Maturity Year		Notional Balance				Fixed Rate on Swap 2
2023		$	24,622				2.59	%
2024		N/A				N/A
2025			25,000				2.24	%
2026			6,000				2.40	%
2027			275,000				2.57	%
2028			150,000				3.02	%
2029			275,000				2.68	%
2030			125,000				2.93	%
Total		$	880,622				2.72	%
Funds
		Acadia's Pro-rata				Weighted Average
Year		Notional Balance				Fixed Rate on Swap 2
2023		$	6,560				2.79	%
2024			46,778				1.33	%
2025			11,242				2.36	%
2026			5,020				3.55	%
2027			15,070				3.39	%
2028			7,173				3.80	%
2029			29,029				3.23	%
2030		N/A				N/A
Total		$	120,872				2.46	%

__________

27

---

 

	Core Portfolio Retail Properties – Detail 1
Supplemental Report – March 31, 2023

 

				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																						`
Rush and Walton Streets    Collection (6 properties)		Lululemon, BHLDN,    Reformation,    Sprinkles		2011  2012			100.0	%			40,384				—				—				40,384				88.2	%			—	%			—	%			88.2	%			93.0	%		$	6,227,897			$	174.91
Clark Street and W. Diversey    Collection (4 properties)		Starbucks,    TJ Maxx,    J Crew Factory		2011 2012			100.0	%			53,277				—				—				53,277				76.1	%			—	%			—	%			76.1	%			78.0	%			1,617,568				39.87
Halsted and Armitage    Collection (13 properties)		Serena and Lily,    Bonobos,    Allbirds,    Warby Parker,    Marine Layer,    Kiehl's		2011 2012 2019 2020			100.0	%			53,220				—				—				53,220				100.0	%			—	%			—	%			100.0	%			100.0	%			2,718,580				51.08
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	%			1,114,787				32.86
State and Washington		Nordstrom Rack,    Uniqlo		2016			100.0	%			78,771				—				—				78,771				100.0	%			—	%			—	%			100.0	%			100.0	%			3,394,002				43.09
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	%			1,845,756				44.17
Concord and Milwaukee		—		2016			100.0	%			13,147				—				—				13,147				100.0	%			—	%			—	%			100.0	%			100.0	%			467,417				35.55
California and Armitage		—		2016			100.0	%			—				—				18,275				18,275				—	%			—	%			78.8	%			78.8	%			78.8	%			726,753				50.49
Roosevelt Galleria		Petco, Vitamin    Shoppe		2015			100.0	%			—				—				37,995				37,995				—	%			—	%			63.4	%			63.4	%			89.7	%			698,674				29.02
Sullivan Center		Target		2016			100.0	%			176,181				—				—				176,181				78.9	%			—	%			—	%			78.9	%			78.9	%			5,219,976				37.56
											506,281				—				84,066				590,347				86.0	%			—	%			78.8	%			85.0	%			87.2	%			25,604,409				51.02
New York Metro
Soho Collection    (12 properties)		Faherty, Watches of    Switzerland,    ALC, Stone    Island,    Taft, Frame,    Theory,    Bang &    Olufsen		2011 2014 2019 2020 2022			100.0	%			36,389				—				—				36,389				64.0	%			—	%			—	%			64.0	%			74.0	%			8,970,484				385.38
5-7 East 17th Street		—		2008			100.0	%			8,593				—				—				8,593				—	%			—	%			—	%			—	%			47.5	%			—				—
200 West 54th Street		—		2007			100.0	%			5,862				—				—				5,862				100.0	%			—	%			—	%			100.0	%			100.0	%			1,575,979				268.85
61 Main Street		Splendid		2014			100.0	%			3,470				—				—				3,470				100.0	%			—	%			—	%			100.0	%			100.0	%			312,925				90.18
181 Main Street		TD Bank		2012			100.0	%			11,514				—				—				11,514				100.0	%			—	%			—	%			100.0	%			100.0	%			1,080,044				93.80
4401 White Plains Road		Walgreens		2011			100.0	%			—				12,964				—				12,964				—	%			100.0	%			—	%			100.0	%			100.0	%			625,000				48.21

28

---

 

	Core Portfolio Retail Properties – Detail 1
Supplemental Report – March 31, 2023

 

				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
Bartow Avenue		—		2005			100.0	%			—				—				14,824				14,824				—	%			—	%			78.8	%			78.8	%			100.0	%			396,697				33.98
239 Greenwich Avenue		Watches of    Switzerland		1998			75.0	%			16,621				—				—				16,621				100.0	%			—	%			—	%			100.0	%			100.0	%			1,793,298				107.89
252-256 Greenwich Avenue		Veronica Beard,    The RealReal,    Blue Mercury		2014			100.0	%			7,986				—				—				7,986				100.0	%			—	%			—	%			100.0	%			100.0	%			1,019,225				127.63
2914 Third Avenue		Planet Fitness		2006			100.0	%			—				21,650				18,953				40,603				—	%			100.0	%			100.0	%			100.0	%			100.0	%			1,107,063				27.27
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		Citizens Bank,    Citi Bank		2013			100.0	%			13,838				—				—				13,838				79.8	%			—	%			—	%			79.8	%			100.0	%			2,111,979				191.34
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 Collection 3		Sephora, SweetGreen,    Levain Bakery		2022			100.0	%			50,842				—				—				50,842				100.0	%			—	%			—				100.0	%			100.0	%			5,236,923				103.00
991 Madison Avenue		Vera Wang,    Gabriela Hearst		2016			100.0	%			7,513				—				—				7,513				100.0	%			—	%			—	%			100.0	%			100.0	%			3,061,496				407.49
Shops at Grand		Stop & Shop (Ahold)		2014			100.0	%			—				52,336				47,349				99,685				—	%			100.0	%			100.0	%			100.0	%			100.0	%			3,548,954				35.60
Gotham Plaza		Bank of America,    Footlocker,    Taco Bell		2016			49.0	%			—				—				25,922				25,922				—	%			—	%			91.6	%			91.6	%			91.6	%			2,001,644				84.34
											171,259				86,950				136,162				394,371				85.7	%			100.0	%			96.1	%			92.4	%			95.9	%			35,388,818				97.08
Los Angeles Metro
8833 Beverly Blvd		Luxury Living		2022			100.0	%			9,757				—				—				9,757				100.0	%			—	%			—	%			100.0	%			100.0	%			1,272,860				130.46
Melrose Place Collection		The Row, Chloe,   Oscar de la Renta		2019			100.0	%			14,000				—				—				14,000				100.0	%			—	%			—	%			100.0	%			100.0	%			2,734,347				195.31
											23,757				—				—				23,757				100.0	%			—	%			—	%			100.0	%			100.0	%			4,007,207				168.67
District of Columbia Metro
1739-53 & 1801-03    Connecticut Avenue		TD Bank		2012			100.0	%			20,669				—				—				20,669				66.7	%			—	%			—	%			66.7	%			66.7	%			771,854				56.02
14th Street Collection (3 properties)		Mitchell Gold +    Bob Williams,    Verizon		2021			100.0	%			19,461				—				—				19,461				100.0	%			—	%			—	%			100.0	%			100.0	%			1,430,821				73.52
Rhode Island Place    Shopping Center		Ross Dress    for Less		2012			100.0	%			—				25,134				32,533				57,667				—				100.0	%			100.0	%			100.0	%			100.0	%			2,080,617				36.08
M Street and Wisconsin Corridor    (26 Properties) 4		Lululemon,    Duxiana,    Rag and Bone,    Reformation,    Glossier,    Showfields		2011 2016 2019			25.2	%			246,672				—				—				246,672				80.0	%			—	%			—	%			80.0	%			86.0	%			13,127,705				66.56
											286,802				25,134				32,533				344,469				80.4	%			100.0	%			100.0	%			83.6	%			88.0	%			17,410,996				60.43
Boston Metro

29

---

 

	Core Portfolio Retail Properties – Detail 1
Supplemental Report – March 31, 2023

 

				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
165 Newbury Street		Starbucks		2016			100.0	%			1,050				—				—				1,050				100.0	%			—	%			—	%			100.0	%			100.0	%			303,471				289.02
											1,050				—				—				1,050				100.0	%			—	%			—	%			100.0	%			100.0	%			303,471				289.02
Dallas Metro
Henderson Avenue Portfolio (14 properties)		Sprouts Market,    Warby Parker,    Tecovas		2022			100.0	%			89,568				31,635				—				121,203				79.0	%			100.0	%			—	%			84.5	%			88.3	%			4,058,059				39.64
Total Street and Urban Retail											1,078,717				143,719				252,761				1,475,197				84.2	%			100.0	%			90.8	%			86.9	%			90.0	%		$	86,772,961			$	67.70
Acadia Share Total Street and Urban Retail											889,992				143,719				239,541				1,273,252				84.6	%			100.0	%			90.8	%			87.5	%			90.7	%		$	75,327,252			$	67.63
SUBURBAN PROPERTIES
New Jersey
Elmwood Park Shopping Center		Walgreens, Lidl,    Chase Bank,    City MD		1998			100.0	%			—				43,531				100,379				143,910				—	%			100.0	%			81.6	%			87.1	%			100.0	%			3,437,633				27.41
Marketplace of Absecon		Walgreens,    Dollar Tree		1998			100.0	%			—				46,724				57,832				104,556				—	%			100.0	%			85.9	%			92.2	%			92.2	%			1,488,816				15.44
New York
Village Commons    Shopping Center		—		1998			100.0	%			—				—				87,128				87,128				—	%			—	%			92.1	%			92.1	%			94.9	%			2,777,972				34.60
Branch Plaza		LA Fitness,    The Fresh Market		1998			100.0	%			—				76,264				47,081				123,345				—	%			100.0	%			96.9	%			98.8	%			98.8	%			3,535,426				29.01
Amboy Center		Stop & Shop (Ahold)		2005			100.0	%			—				37,266				26,024				63,290				—	%			100.0	%			71.9	%			88.4	%			92.2	%			1,960,211				35.02
Crossroads Shopping Center		HomeGoods,    PetSmart,    BJ's Wholesale    Club		1998			49.0	%			—				202,727				108,928				311,655				—	%			100.0	%			54.8	%			84.2	%			88.6	%			7,957,099				30.32
New Loudon Center		Price Chopper,    Marshalls		1993			100.0	%			—				242,058				16,643				258,701				—	%			94.8	%			100.0	%			95.2	%			95.2	%			2,249,811				9.14
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	%			55.1	%			73.9	%			73.9	%			2,275,105				33.98
Connecticut
Town Line Plaza 5		Wal-Mart,    Stop & Shop    (Ahold)		1998			100.0	%			—				163,159				42,930				206,089				—	%			100.0	%			87.2	%			97.3	%			97.3	%			1,809,935				17.52
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	%			1,467,751				11.29
Crescent Plaza		Home Depot,   Shaw's  (Supervalu)		1993			100.0	%			—				156,985				61,163				218,148				—	%			100.0	%			85.7	%			96.0	%			100.0	%			2,072,175				9.90
201 Needham Street		Michael's		2014			100.0	%			—				20,409				—				20,409				—	%			100.0	%			—	%			100.0	%			100.0	%			711,662				34.87

30

---

 

	Core Portfolio Retail Properties – Detail 1
Supplemental Report – March 31, 2023

 

				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
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				29,670				102,854				—	%			100.0	%			85.8	%			95.9	%			98.7	%			2,168,365				21.98
Illinois
Hobson West Plaza		Garden Fresh    Markets		1998			100.0	%			—				51,692				47,270				98,962				—	%			100.0	%			97.3	%			98.7	%			98.7	%			1,397,131				14.30
Indiana
Merrillville Plaza		Jo-Ann Fabrics,    TJ Maxx, DD's    Discount   (Ross)		1998			100.0	%			—				123,144				112,782				235,926				—	%			100.0	%			71.5	%			86.4	%			91.1	%			2,897,494				14.22
Michigan
Bloomfield Town Square		HomeGoods,    TJ Maxx,    Dick's Sporting    Goods,    Burlington		1998			100.0	%			—				153,332				81,619				234,951				—	%			100.0	%			98.2	%			99.4	%			99.4	%			4,287,818				18.36
Delaware
Town Center and Other    (2 properties)		Lowes,    Dick's Sporting    Goods, Target		2003			100.0	%			—				751,455				48,608				800,063				—	%			94.2	%			91.4	%			94.0	%			94.0	%			13,046,255				17.35
Market Square Shopping Center		Trader Joe's,    TJ Maxx		2003			100.0	%			—				42,850				59,197				102,047				—	%			100.0	%			100.0	%			100.0	%			100.0	%			3,270,256				32.05
Naamans Road		—		2006			100.0	%			—				—				19,850				19,850				—	%			—	%			63.9	%			63.9	%			63.9	%			698,462				55.08
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	%			909,902				5.82
Chestnut Hill		—		2006			100.0	%			—				—				36,492				36,492				—	%			—	%			100.0	%			100.0	%			100.0	%			961,735				26.35
Abington Towne Center 6		Target, TJ Maxx		1998			100.0	%			—				184,616				32,255				216,871				—	%			100.0	%			100.0	%			100.0	%			100.0	%			1,289,331				21.76
Total Suburban Properties											—				2,909,173				1,096,687				4,005,860				—	%			98.1	%			83.6	%			94.1	%			95.6	%		$	66,403,693			$	18.89
Acadia Share Total Suburban Properties											—				2,805,782				1,041,134				3,846,916				—	%			98.0	%			85.1	%			94.5	%			95.9	%		$	62,345,572			$	18.44
Total Core Properties											1,078,717				3,052,892				1,349,448				5,481,057				84.2	%			98.2	%			85.0	%			92.2	%			94.1	%		$	153,176,654			$	31.94
Acadia Share Total Core Properties											889,992				2,949,501				1,280,675				5,120,168				84.6	%			98.1	%			86.2	%			92.8	%			94.6	%		$	137,672,824			$	30.63

 

 

31

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	Core Portfolio Retail Properties – Detail 1
Supplemental Report – March 31, 2023

 

__________

 

32

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	Core Portfolio – Top Tenants 1
Supplemental Report – March 31, 2023	(Pro Rata Basis)

 

		Number of				Combined								Percentage of Total
Tenant		Stores				GLA				ABR				GLA				ABR
Target			3				408,895			$	8,323,009				7.0	%			5.3	%
Walgreens			5				81,763				3,719,187				1.4	%			2.4	%
Royal Ahold 2			3				155,461				3,637,677				2.7	%			2.3	%
Bed, Bath, and Beyond			2				124,432				3,560,443				2.1	%			2.3	%
Verizon			2				26,054				2,835,865				0.4	%			1.8	%
TJX Companies 3			8				229,043				2,765,292				3.9	%			1.8	%
PetSmart, Inc.			4				76,257				2,760,241				1.3	%			1.8	%
Lululemon			2				7,533				2,614,753				0.1	%			1.7	%
Trader Joe's			3				40,862				2,499,318				0.7	%			1.6	%
Fast Retailing 4			2				32,013				2,387,950				0.5	%			1.5	%
Albertsons Companies 5			2				123,409				1,980,640				2.1	%			1.3	%
Bob's Discount Furniture			2				68,793				1,843,336				1.2	%			1.2	%
Tapestry 6			2				4,250				1,736,804				0.1	%			1.1	%
Watches of Switzerland 7			2				13,863				1,624,974				0.2	%			1.0	%
Ulta Salon Cosmetic & Fragrance			3				31,497				1,550,757				0.5	%			1.0	%
Dick's Sporting Goods, Inc			2				98,805				1,544,276				1.7	%			1.0	%
Gap 8			2				37,895				1,363,165				0.6	%			0.9	%
Citibank			4				16,160				1,337,924				0.3	%			0.9	%
The Home Depot			2				187,914				1,307,040				3.2	%			0.8	%
TD Bank			2				14,700				1,285,992				0.3	%			0.8	%
TOTAL			57				1,779,599			$	50,678,643				30.3	%			32.4	%

__________

 

33

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	Core Portfolio – Lease Expirations
Supplemental Report – March 31, 2023	(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				2,265				0.3	%		$	15.89				0.1	%			—				—				—	%		$	—				—	%
2023 (remainder)			20				92,040				12.2	%			53.81				7.9	%			3				95,734				3.6	%			15.63				3.7	%
2024			20				60,224				8.0	%			71.63				6.9	%			16				561,054				21.3	%			13.82				19.2	%
2025			22				57,734				7.7	%			148.28				13.7	%			9				376,598				14.3	%			19.14				17.9	%
2026			29				73,149				9.7	%			141.60				16.5	%			9				404,089				15.3	%			9.94				10.0	%
2027			14				26,074				3.5	%			143.97				6.0	%			5				155,675				5.9	%			21.38				8.3	%
2028			15				186,254				24.8	%			58.53				17.4	%			10				513,514				19.5	%			11.97				15.2	%
2029			14				41,663				5.5	%			87.88				5.8	%			3				99,988				3.8	%			16.98				4.2	%
2030			8				63,747				8.5	%			61.82				6.3	%			—				—				—	%			—				—	%
2031			7				41,177				5.5	%			68.93				4.5	%			2				50,566				1.9	%			16.97				2.1	%
2032			18				59,042				7.8	%			104.58				9.8	%			2				62,382				2.4	%			12.53				1.9	%
Thereafter			10				49,138				6.5	%			65.36				5.1	%			7				318,547				12.1	%			22.07				17.4	%
Total			179				752,508				100.0	%		$	83.32				100.0	%			66				2,638,147				100.0	%		$	15.28				100.0	%
Anchor GLA Owned by Tenants							—																				254,916
Total Vacant							137,484																				56,438
Total Square Feet							889,992																				2,949,501
		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			—				—				—	%		$	—				—	%			2				2,265				0.1	%		$	15.89				—	%
2023 (remainder)			30				102,733				9.3	%			28.66				8.5	%			53				290,507				6.5	%			32.33				6.8	%
2024			33				153,801				13.9	%			25.27				11.2	%			69				775,079				17.2	%			20.58				11.6	%
2025			34				116,318				10.5	%			28.50				9.6	%			65				550,650				12.3	%			34.65				13.9	%
2026			39				142,809				12.9	%			26.03				10.7	%			77				620,046				13.8	%			29.18				13.1	%
2027			39				163,825				14.8	%			33.36				15.8	%			58				345,574				7.7	%			36.31				9.1	%
2028			26				105,912				9.6	%			39.06				11.9	%			51				805,680				17.9	%			26.29				15.4	%
2029			13				30,831				2.8	%			29.11				2.6	%			30				172,482				3.8	%			36.27				4.5	%
2030			10				30,848				2.8	%			35.58				3.2	%			18				94,595				2.1	%			53.26				3.7	%
2031			16				83,070				7.5	%			28.70				6.9	%			25				174,813				3.9	%			34.78				4.4	%
2032			26				99,384				9.0	%			32.77				9.4	%			46				220,808				4.9	%			46.25				7.4	%
Thereafter			17				74,452				6.7	%			47.72				10.3	%			34				442,137				9.8	%			31.20				10.0	%
Total			283				1,103,981				100.0	%		$	31.39				100.0	%			528				4,494,636				100.0	%		$	30.63				100.0	%
Anchor GLA Owned by Tenants							—																				254,916
Total Vacant							176,694																				370,616
Total Square Feet							1,280,675																				5,120,168

_________

 

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

 

34

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	Core Portfolio – New and Renewal Rent Spreads 1
Supplemental Report – March 31, 2023

 

		Quarter Ended
		March 31, 2023
		GAAP 2				Cash 3
New Leases
Number of new leases executed			1				1
GLA			2,360				2,360
New base rent		$	50.09			$	46.00
Previous base rent		$	31.94			$	32.85
Average cost per square foot		$	16.57			$	16.57
Weighted Average Lease Term (years)			10.0				10.0
Percentage growth in base rent			56.8	%			40.0	%
Renewal Leases
Number of renewal leases executed			16				16
GLA			52,191				52,191
New base rent		$	32.10			$	30.78
Expiring base rent		$	26.66			$	28.42
Average cost per square foot		$	1.91			$	1.91
Weighted Average Lease Term (years)			4.6				4.6
Percentage growth in base rent			20.4	%			8.3	%
Total New and Renewal Leases
Number of new and renewal leases executed			17				17
GLA commencing			54,551				54,551
New base rent		$	32.88			$	31.44
Expiring base rent		$	26.89			$	28.61
Average cost per square foot		$	2.54			$	2.54
Weighted Average Lease Term (years)			4.8				4.8
Percentage growth in base rent			22.3	%			9.9	%

__________

 

 

 

35

---

 

 

	Core Portfolio – Capital Expenditures
Supplemental Report – March 31, 2023

 

		Quarter to Date								Year to Date
		March 31, 2023				March 31, 2022				December 31, 2022
Leasing Commissions		$	1,507			$	1,053			$	3,459
Tenant Improvements			4,805				3,403				14,651
Maintenance Capital Expenditures			690				638				8,331
Total Capital Expenditures		$	7,002			$	5,094			$	26,441

 

 

36

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	Fund Overview
Supplemental Report – March 31, 2023

 

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			$		472.0		Million 2			$		502.5		Million			$		540.6		Million			$		520.0		Million			$		2,125.1		Million
Acadia's Commitment		$		20.0		Million			$		291.2		Million			$		123.3		Million			$		125.0		Million			$		104.5		Million			$		664.0		Million
Acadia's Pro Rata Share				22.2		%					61.7		% 2					24.5		%					23.1		%					20.1		%					31.2		%
Acadia's Promoted Share 1				37.8		%					69.4		%					39.6		%					38.5		%					36.1		%					45.0		%
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			$		557.3		Million			$		448.1		Million			$		488.1		Million			$		387.0		Million			$		1,967.1		Million
Cumulative Net Distributions 3		$		195.4		Million			$		172.9		Million			$		603.5		Million			$		221.4		Million			$		94.4		Million			$		1,287.6		Million
Net Distributions/Contributions				225.6		%					31.0		%					134.7		%					45.4		%					24.4		%					65.5		%
Unfunded Commitment 4		$		0.0		Million			$		0.0		Million			$		1.9		Million			$		41.9		Million			$		133.0		Million			$		176.8		Million
Acquisition Dry Powder 5			N/A							N/A							N/A							N/A						$	70 - 80			Million			$	70 - 80			Million
Investment Period Closes			Closed							Closed							Closed							Closed							Aug-2023
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							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 6-7 of the investment period (August 26, 2021-August 25, 2023); 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

 

 

37

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	Fund Overview
Supplemental Report – March 31, 2023

_________

38

---

 

	Fund Portfolio Retail Properties – Detail 1
Supplemental Report – March 31, 2023

 

 

 

				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 2		Primark, Target, Basis Schools, Alamo Drafthouse, Trader Joe's		2007			94.2	%			—				329,945				206,384				536,329				—	%			88.7	%			30.6	%			66.3	%			83.9	%		$	14,640,416			$	41.16
Total - Fund II											—				329,945				206,384				536,329				—	%			88.7	%			30.6	%			66.3	%			83.9	%		$	14,640,416			$	41.16
Fund III Portfolio Detail
NEW YORK
New York
640 Broadway		Swatch		2012			100.0	%			4,637				—				—				4,637				91.6	%			—	%			—	%			91.6	%			91.6	%		$	1,082,505			$	254.89
Total - Fund III											4,637				—				—				4,637				91.6	%			—	%			—	%			91.6	%			91.6	%		$	1,082,505			$	254.89
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	%			100.0	%			1,887,315				272.26
1035 Third Avenue 3		─		2015			100.0	%			7,634				—				—				7,634				100.0	%			—	%			—	%			100.0	%			100.0	%			1,322,724				173.27
New Jersey
Paramus Plaza		Marshall, Hobby Lobby, Skechers		2013			50.0	%			—				87,539				65,955				153,494				—	%			100.0	%			100.0	%			100.0	%			100.0	%			3,262,289				21.25
BOSTON
Massachusetts
Restaurants at Fort Point		─		2016			100.0	%			15,711				—				—				15,711				100.0	%			—	%			—	%			100.0	%			100.0	%			1,050,946				66.89
NORTHEAST
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	%			85.3	%			85.3	%			2,052,672				14.99
MID-ATLANTIC
Delaware
Eden Square		Giant Food, LA Fitness		2014			98.6	%			—				116,003				113,168				229,171				—	%			100.0	%			81.5	%			90.9	%			97.0	%			3,252,023				15.61
SOUTHEAST
Georgia
Broughton Street Portfolio    (13 properties)		H&M, Lululemon, Kendra Scott, Starbucks		2014			100.0	%			95,201				—				—				95,201				86.5	%			—	%			—	%			86.5	%			93.1	%			3,036,641				36.86
WEST
California
146 Geary Street		─		2015			100.0	%			10,151				—				—				10,151				—	%			—	%			—	%			—	%			—	%			—				—
Union and Fillmore Collection (3 properties)		Eileen Fisher, Bonobos		2015			90.0	%			7,148				—				—				7,148				77.9	%			—	%			—	%			77.9	%			77.9	%			650,117				116.82
Total - Fund IV											153,514				258,542				284,571				696,627				77.0	%			100.0	%			84.4	%			88.6	%			91.7	%		$	16,514,727			$	26.77

39

---

 

	Fund Portfolio Retail Properties – Detail 1
Supplemental Report – March 31, 2023

 

				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 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	%			99.3	%		$	4,026,220			$	18.45
Texas
Wood Ridge Plaza		Kirkland's, Office Depot		2022			90.0	%			—				—				211,674				211,674				—	%			—	%			85.1	%			85.1	%			87.3	%			3,841,444				21.33
La Frontera Plaza		Kohl's, Hobby Lobby, Burlington, Marshalls		2022			90.0	%			—				203,500				330,930				534,430				—	%			100.0	%			86.1	%			91.4	%			92.9	%			6,753,566				13.83
MIDWEST
Michigan
New Towne Center		Kohl's, Jo-Ann's, DSW		2017			100.0	%			—				145,389				45,141				190,530				—	%			100.0	%			100.0	%			100.0	%			100.0	%			2,348,896				12.33
Fairlane Green		TJ Maxx, Michaels, Burlington		2017			100.0	%			—				109,952				160,235				270,187				—	%			100.0	%			91.9	%			95.2	%			95.2	%			5,063,602				19.68
NORTHEAST
Maryland
Frederick County (2 properties)		Kohl's, Best Buy, Ross Dress for Less		2019			90.0	%			—				251,988				278,828				530,816				—	%			100.0	%			79.0	%			89.0	%			94.8	%			7,021,363				14.87
Connecticut
Tri-City Plaza		TJ Maxx, HomeGoods, ShopRite		2019			90.0	%			—				129,940				172,790				302,730				—	%			100.0	%			82.5	%			90.0	%			90.0	%			3,815,472				14.00
New Jersey
Midstate		ShopRite, Best Buy, DSW, PetSmart		2021			100.0	%			—				253,779				131,337				385,116				—	%			90.5	%			66.6	%			82.4	%			87.4	%			6,135,938				19.34
New York
Shoppes at South Hills		ShopRite, At Home, Ashley Furniture		2022			90.0	%			—				416,804				95,414				512,218				—	%			80.7	%			46.2	%			74.3	%			74.3	%			4,387,135				11.53
Mohawk Commons		Lowe's, Target		2023			90.0	%			—				330,874				68,464				399,338				—	%			100.0	%			89.9	%			98.3	%			98.3	%			5,537,375				14.11
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	%			4,243,262				11.42
Rhode Island
Lincoln Commons		Stop and Shop, Marshalls, HomeGoods		2019			100.0	%			—				194,470				267,551				462,021				—	%			100.0	%			78.7	%			87.7	%			88.0	%			5,454,027				13.46
SOUTHEAST
Virginia
Landstown Commons		Best Buy, Burlington Coat Factory, Ross Dress for Less		2019			100.0	%			—				87,883				292,316				380,199				—	%			100.0	%			88.2	%			90.9	%			97.3	%			7,223,010				20.90
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	%			3,437,278				20.65
North Carolina
Hickory Ridge		Kohl's, Best Buy, Dick's Sporting Goods		2017			100.0	%			—				266,584				113,981				380,565				—	%			100.0	%			100.0	%			100.0	%			100.0	%			4,827,296				12.68

40

---

 

	Fund Portfolio Retail Properties – Detail 1
Supplemental Report – March 31, 2023

 

				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
Alabama
Trussville Promenade		Wal-Mart, Regal Cinemas		2018			100.0	%			—				366,010				97,671				463,681				—	%			100.0	%			75.2	%			94.8	%			94.8	%			4,558,377				10.37
Georgia
Canton Marketplace		Dick's Sporting Goods, TJ Maxx, Best Buy		2021			100.0	%			—				132,569				219,419				351,988				—	%			100.0	%			89.2	%			93.3	%			94.6	%			5,736,361				17.47
Hiram Pavilion		Kohl's, HomeGoods		2018			100.0	%			—				209,423				153,252				362,675				—	%			100.0	%			98.6	%			99.4	%			99.4	%			4,578,501				12.70
WEST
California
Elk Grove Commons		Kohl's, HomeGoods		2018			100.0	%			—				132,489				109,589				242,078				—	%			100.0	%			96.4	%			98.4	%			99.1	%			5,084,305				21.35
Utah
Family Center at Riverdale		Target, Home Goods, Best Buy,  Sierra Trading (TJX)		2019			89.4	%			—				231,673				140,802				372,475				—	%			100.0	%			94.5	%			97.9	%			97.9	%			3,993,137				10.95
Total - Fund V											—				3,953,927				3,166,397				7,120,324				—	%			97.4	%			85.9	%			92.3	%			93.7	%		$	98,066,565			$	14.93
TOTAL FUND PROPERTIES											158,151				4,542,414				3,657,352				8,357,917				77.4	%			96.9	%			82.7	%			90.3	%			92.9	%		$	130,304,213			$	17.27
Acadia Share of Total Fund Properties											36,465				1,002,701				785,433				1,824,599				77.5	%			95.9	%			77.4	%			87.6	%			91.9	%		$	31,134,993			$	19.49

 

__________

 

41

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	Fund Lease Expirations
Supplemental Report – March 31, 2023	(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			—				—				—	%		$	—			$	—				—	%			—				—				—	%		$	—			$	—				—	%
2023 (remainder)			—				—				—	%			—				—				—	%			1				160				15.3	%			64,426				403.90				24.3	%
2024			—				—				—	%			—				—				—	%			—				—				—	%			—				—				—	%
2025			1				1,426				0.7	%			159,739				112.00				1.9	%			—				—				—	%			—				—				—	%
2026			—				—				—	%			—				—				—	%			—				—				—	%			—				—				—	%
2027			3				15,292				7.4	%			1,139,551				74.52				13.4	%			—				—				—	%			—				—				—	%
2028			1				552				0.3	%			107,618				195.00				1.3	%			1				306				29.4	%			73,995				241.80				27.9	%
2029			1				580				0.3	%			86,965				150.00				1.0	%			—				—				—	%			—				—				—	%
2030			—				—				—	%			—				—				—	%			1				177				17.0	%			40,920				231.28				15.4	%
2031			—				—				—	%			—				—				—	%			1				226				21.7	%			53,912				238.28				20.3	%
2032			4				78,364				37.9	%			1,176,305				15.01				13.8	%			1				173				16.6	%			32,393				186.70				12.2	%
Thereafter			6				110,444				53.4	%			5,834,899				52.83				68.6	%			—				—				—	%			—				—				—	%
Total			16				206,658				100.0	%		$	8,505,077			$	41.16				100.0	%			5				1,042				100.0	%		$	265,647			$	254.89				100.0	%
							104,912			Total Vacant																					96			Total Vacant
							311,570			Total Square Feet																					1,138			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			—				—				—	%		$	—			$	—				—	%			3				1,632				0.1	%		$	29,244			$	17.92				0.2	%
2023 (remainder)			5				1,916				1.6	%			70,896				37.00				2.1	%			64				82,693				6.5	%			1,560,673				18.87				8.2	%
2024			4				16,562				13.7	%			339,596				20.50				10.1	%			97				196,445				15.5	%			3,032,113				15.43				16.0	%
2025			6				2,130				1.8	%			502,459				235.90				14.9	%			94				241,015				19.0	%			3,398,710				14.10				17.9	%
2026			12				18,133				15.0	%			484,457				26.72				14.4	%			80				115,035				9.1	%			2,184,933				18.99				11.5	%
2027			11				8,297				6.9	%			223,781				26.97				6.6	%			79				188,461				14.9	%			2,387,188				12.67				12.6	%
2028			7				5,370				4.4	%			157,861				29.40				4.7	%			37				87,230				6.9	%			1,461,038				16.75				7.7	%
2029			4				15,687				13.0	%			322,179				20.54				9.6	%			25				69,847				5.5	%			791,592				11.33				4.2	%
2030			1				346				0.3	%			16,278				47.00				0.5	%			26				66,121				5.2	%			920,224				13.92				4.8	%
2031			8				14,337				11.9	%			366,705				25.58				10.9	%			28				70,922				5.6	%			1,019,158				14.37				5.4	%
2032			7				25,565				21.1	%			610,736				23.89				18.1	%			35				76,431				6.0	%			1,184,464				15.50				6.2	%
Thereafter			4				12,579				10.4	%			273,121				21.71				8.1	%			20				73,072				5.8	%			1,026,863				14.05				5.4	%
Total			69				120,922				100.0	%		$	3,368,070			$	27.85				100.0	%			588				1,268,904				100.0	%		$	18,996,200			$	14.97				100.0	%
							17,777			Total Vacant																					104,287			Total Vacant
							138,700			Total Square Feet																					1,373,191			Total Square Feet

__________

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

 

42

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	Development and Redevelopment Activity
Supplemental Report – March 31, 2023

 

																									Acquisition & Development Costs
Property		Ownership 1		Location		Estimated Stabilization		Est. Sq ft Upon Completion				Occupied/ Leased Rate		Key Tenants		Description	Initial Basis at Acquisition 1				Costs prior to development / redevelopment 1				Incurred costs since development / redevelopment 1				Total Costs 1				Total Costs (Pro Rata)				Estimated Future Range 1										Estimated Total Range 1
Development:
CORE
1238 Wisconsin		80.0%		Washington DC		2023			29,000			12%/82%		Wolford, Everbody		Redevelopment/addition to existing building with ground level retail, upper floor office and residential units upon completion. Discretionary spend upon securing tenant(s)	$	—			$	—			$	19.9			$	19.9			$	19.9			$	12.8			to		$	13.6			$	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.		9.6				—				1.6			11.2					11.2			TBD				to		TBD				TBD				to		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		12.3				—				14.3			26.6					6.5				23.4			to			33.4				50.0			to			60.0
Sub-Total Development																	$	21.9			$	—			$	35.8			$	57.7			$	37.6			$	36.2					$	47.0			$	82.7					$	93.5
Major Redevelopment:
CORE
City Center		100.0%		San Francisco, CA		2024			241,000			75%/100%		Target, Whole Foods, PetSmart		Ground up development of pad sites and street level retail and re-tenanting/redevelopment for Whole Foods	$	155.0				—			$	48.9			$	203.9			$	203.9			$	6.1			to		$	9.1			$	210.0			to		$	213.0
555 9th Street		100.0%		San Francisco, CA		TBD			149,000			65%/81%		The Container Store		Re-tenanting and potential split of former 46,000 sf Nordstrom; façade upgrade and possible vertical expansion		140.9				0.8				0.4			142.1					142.1			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		28.9				0.2				0.2			29.3					29.3			TBD				to		TBD				TBD				to		TBD
Route 6 Mall		100.0%		Honesdale, PA		TBD		TBD				32%/47%		TJ Maxx		Discretionary spend for re-tenanting former 120,000 sf Kmart anchor space once tenant(s) are secured		1.7				13.1				1.2				16.0				16.0				4.8			to			7.8				6.0			to			9.0
Mad River		100.0%		Dayton, OH		TBD		TBD				71%/71%		TBD		Discretionary spend for the re-tenanting former 33,000 sf Babies R Us space once tenant(s) are secured		11.8				2.5				—			14.3					14.3				1.9			to			2.3				1.9			to			2.3
840 N. Michigan Avenue		88.43%		Chicago, IL		TBD			87,000			100%/100%		TBD		Discretionary spend for future re-tenanting		163.5				2.2				—			165.7					165.7			TBD				to		TBD				TBD				to		TBD
664 N. Michigan Avenue		100.0%		Chicago, IL		TBD			18,000			100%/100%		TBD		Discretionary spend for future re-tenanting		86.6				0.6				—			87.2					87.2			TBD				to		TBD				TBD				to		TBD
FUND IV
717 N. Michigan Avenue		100.0%		Chicago, IL		TBD		TBD				14%/26%		Alo Yoga		Discretionary spend upon securing tenant(s) for lease up		104.6				12.0				—			116.6					27.0			TBD				to		TBD				TBD				to		TBD
Sub-Total Major Redevelopment																	$	693.0			$	31.4			$	50.7			$	775.1			$	685.5			$	12.8					$	19.2			$	217.9					$	224.3
Total Development and Major Redevelopment																	$	714.9			$	31.4			$	86.5			$	832.8			$	723.1			$	49.0					$	66.2			$	300.6					$	317.8

_________

 

43

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	Development and Redevelopment Activity
Supplemental Report – March 31, 2023

_________

 

 

Development and incurred redevelopment costs above						$	108.4
Unconsolidated projects (a)							(19.9	)
Projects in redevelopment not above (b)							31.5
Deferred costs and other amounts							(2.1	)
Total per consolidated balance sheet						$	117.9

 

44

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	Important Notes
Supplemental Report – March 31, 2023

 

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 (i) gains (or losses) from sales of depreciated properties; (ii) depreciation and amortization; (iii) impairment of real estate properties; (iv) gains (losses) from change in control and (v) after adjustments for unconsolidated partnerships and joint ventures. Also consistent with NAREIT’s definition of FFO, the Company has elected to include the impact of the unrealized holding gains (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 (i) charges, income and gains that management believes are not comparable and indicative of the results of the Company’s operating real estate portfolio; (ii) the impact of the unrealized holding gains (losses) incidental to its main business, including those related to its RCP investments such as Albertsons and (iii) any realized income or gains from the Company’s investment in Albertsons.

 

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.

 

45

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