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): November 3, 2003
ACADIA REALTY TRUST
(Exact name of registrant as specified in its charter)
Maryland 1-12002 23-2715194
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1311 Mamaroneck Avenue
White Plains, New York 10605
(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)
ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Exhibit Number Description
- -------------- --------------------------------
99.1 Financial and Operating Reporting Supplement for the Quarter
Ended September 30, 2003
99.2 Press release dated November 3, 2003
ITEM 9. Regulation FD Disclosure
On November 3, 2003, the Registrant, Acadia Realty Trust, made available
supplemental information concerning the ownership, operations and portfolio of
the Registrant as of September 30, 2003. A copy of this supplemental information
is furnished as Exhibit 99.1 to this report on Form 8-K. The information
contained in Item 9. of this report on Form 8-K, including Exhibit 99.1, shall
not be deemed "filed" with the Securities and Exchange Commission nor
incorporated by reference in any registration statement filed by the Registrant
under the Securities Act of 1933, as amended.
ITEM 12. Results of Operations and Financial Condition
On November 3, 2003, the Registrant announced its consolidated financial results
for the quarter ended September 30, 2003. A copy of the Registrant's earnings
press release is furnished as Exhibit 99.2 to this report on Form 8-K. The
information contained in Item 12. of this report on Form 8-K, including Exhibit
99.2, shall not be deemed "filed" with the Securities and Exchange Commission
nor incorporated by reference in any registration statement filed by the
Registrant under the Securities Act of 1933, as amended.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ACADIA REALTY TRUST
(Registrant)
Date: November 3, 2003 By: /s/ Michael Nelsen
Name: Michael Nelsen
Title: Sr. Vice President and Chief
Financial Officer
2
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Table of Contents
Page Page
---- ----
Section I - Overview Section III - Joint Venture - Acadia Strategic Opportunity Fund
Important Notes 2 Overview 23
Company Information 3 Joint Venture Properties - Detail 24
Portfolio Snapshot 4 Kroger/Safeway Locations 25
Organizational Chart 5 Top 10 Joint Venture Tenants 26
Management Team 6 Section IV - Portfolio Information
Section II - Financial Information Properties - Overview 27
Market Capitalization 7 Properties by Region - Summary 30
Shareholder Information 8 Properties by State - Summary 31
Operating Statements - Consolidated 9 Properties - Detail 32
Operating Statements - Joint Venture Activity 10 Leasing Production 35
Operating Statements - Activity by Source 12 Top 10 Tenants - Consolidated 36
Operating Statements - Current v. Historical 13 Anchor Tenant Detail 37
Net Operating Income - Same Property Performance 14 Anchor Lease Expirations - 2003 through 2005 41
Funds from Operations ("FFO") and Adjusted FFO ("AFFO") 15 Lease Expirations 42
Capital Expenditures 16 Property Demographics 48
Balance Sheets 17 Residential Properties 49
Selected Operating Ratios 18
Debt Analysis - Consolidated 19
Debt Maturity Schedule 21
Unencumbered Properties 22
Visit acadiarealty.com for current news as well as additional property details and financial information
Page 1
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Important Notes
---------------
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this Supplementary Disclosure constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among others, the
following: general economic and business conditions, which will, among other
things, affect demand for rental space, the availability and creditworthiness of
prospective tenants, lease rents and the availability of financing; adverse
changes in the Company's real estate markets, including, among other things,
competition with other companies; risks of real estate development and
acquisition; governmental actions and initiatives; and environmental/safety
requirements. The Company also refers you to the documents filed by the Company,
from time to time, with the Securities and Exchange Commission, including
without limitation the Company's Annual Report on Form 10-K and the
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" incorporated by reference therein, for a discussion of such risks
and uncertainties.
PRESENTATION OF FUNDS FROM OPERATIONS
The Company considers funds from operations ("FFO") as defined by the National
Association of Real Estate Investment Trusts ("NAREIT") to be an appropriate
supplemental disclosure of operating performance for an equity REIT due to its
widespread acceptance and use within the REIT and analyst communities. FFO is
presented to assist investors in analyzing the performance of the Company. It is
helpful as it excludes various items included in net income that are not
indicative of the operating performance, such as gains (or losses) from sales of
property and depreciation and amortization. However, the Company's method of
calculating FFO may be different from methods used by other REITs and,
accordingly, may not be comparable to such other REITs. FFO does not represent
cash generated from operations as defined by generally accepted accounting
principles ("GAAP") and is not indicative of cash available to fund all cash
needs, including distributions. It should not be considered as an alternative to
net income for the purpose of evaluating the Company's performance or to cash
flows as a measure of liquidity. Consistent with the NAREIT definition, the
Company defines FFO as net income (computed in accordance with GAAP), excluding
gains (or losses) from sales of depreciated property, plus depreciation and
amortization, and after adjustments for unconsolidated partnerships and joint
ventures. The Company historically has added back impairments in real estate in
calculating FFO, in accordance with prior NAREIT guidance. However, NAREIT,
based on discussions with the SEC, has provided revised guidance that provides
that impairments should not be added back to net income in calculating FFO. As
such, historical FFO has been restated consistent with this revised guidance.
Page 2
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Company Information
Acadia Realty Trust, headquartered in White Plains, NY, is a fully integrated
and self-managed real estate investment trust which specializes in the
acquisition, redevelopment and operation of shopping centers which are anchored
by grocery and value-oriented retail. Acadia currently owns (or has interests
in) and operates 62 properties totaling approximately 9 million square feet,
located in the Northeast, Mid-Atlantic and Midwest United States.
All of Acadia's assets are held by, and all its operations are conducted
through, Acadia Realty Limited Partnership (and its majority-owned subsidiaries)
which is currently 96% controlled by Acadia.
Corporate Headquarters 1311 Mamaroneck Avenue Investor Relations Jon Grisham
Suite 260 Vice President
White Plains, NY 10605 (914) 288-8100
jgrisham@acadiarealty.com
New York Stock Exchange Symbol AKR Web Site www.acadiarealty.com
Analyst Coverage Cobblestone Research, LLC Citigroup - Smith Barney
Paul Adornato, CFA - (212) 586-0797 Jonathan Litt - (212) 816-0231
padornato@cobblestoneresearch.com jonathan.litt@citigroup.com
--------------------------------- ---------------------------
Ross Nussbaum - (212)816-1685
ross.nussbaum@citigroup.com
---------------------------
David Carlisle - (212) 816-1382
david.s.carlisle@citigroup.com
RBC Capital Markets: ------------------------------
Jay Leupp - (415) 633-8588
jay.leupp@rbccm.com
------------------- J.P. Morgan Securities, Inc.
David Ronco - (415) 633-8566 Michael W. Mueller, CFA (212) 622-6689
david.ronco@rbccm.com michael.w.mueller@jpmorgan.com
--------------------- -------------------------------
Page 3
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Portfolio Snapshot
[GRAPHIC]
Retail Base Rent - by State
[GRAPHIC]
Page 4
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Organizational Chart
[GRAPHIC]
Page 5
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Executive Management Team
-------------------------
Kenneth F. Bernstein Chief Executive Officer Mr. Bernstein is responsible for strategic planning as well as overseeing all day
and President to day activities of the Company including operations, acquisitions and capital
markets. Mr. Bernstein served as the Chief Operating Officer of RD Capital, Inc.
from 1990 until the merger of RD Capital with Mark Centers Trust in August of
1998, forming Acadia Realty Trust. In such capacity, he was responsible for
overseeing the day-to-day operations of RD Capital and its management companies,
Acadia Management Company LLC and Sound View Management LLC. Prior to joining RD
Capital, Mr. Bernstein was an associate with the New York law firm of Battle
Fowler, LLP, from 1986 to 1990. Mr. Bernstein received his Bachelor of Arts Degree
from the University of Vermont and his Juris Doctorate from Boston University
School of Law.
Joel Braun Senior Vice President, Mr. Braun is responsible for the sourcing and financial analysis of acquisition
Acquisitions properties for Acadia. Previously, Mr. Braun was Director of Acquisitions and
Finance for Rosenshein Associates, a regional shopping center developer based in
New Rochelle, New York. During this time, Mr. Braun was instrumental in the
initiation and formation of Kranzco Realty Trust, a publicly traded REIT. Mr.
Braun holds a Bachelor's in Business Administration from Boston University and a
Master's Degree in Planning from John Hopkins University.
Joseph Hogan Senior Vice President, Most recently, Mr. Hogan served as Vice President with Kimco Realty Corporation
Director of Construction (NYSE:KIM), where he was responsible for business development and management of
all retail and commercial construction projects for Kimco, in addition to outside
customers and development companies. Prior to joining Kimco, he was with Konover
Construction Company, a subsidiary of Konover & Associates located in West
Hartford, Connecticut, where he was responsible for construction projects
throughout the eastern half of the United States.
Robert Masters, Esq. Senior Vice President, Prior to joining Acadia in December 1994, Mr. Masters was General Counsel for API
General Counsel, Asset Management for over five years, Senior Vice President Deputy General Counsel
Corporate Secretary for European American Bank from 1985 to 1990, and Vice President and Counsel for
National Westminster Bank from 1977 to 1985. Mr. Masters received his Bachelor of
Arts from the City University of New York and a J.D. from New York University Law
School. Mr. Masters is also a member of the New York Bar.
Joseph M. Napolitano, Senior Vice President, Mr. Napolitano is responsible for overseeing the retail property management
CPM Director of Operations department for Acadia Realty Trust. Prior to joining Acadia in 1995, Mr.
Napolitano was employed by Rosen Associates Management Corp. as a Senior Property
Manager overseeing a national portfolio of community shopping centers, and
Roebling Management Co. as a Property Manager responsible for neighborhood and
community shopping centers nationally. Mr. Napolitano holds a Bachelor's in
Business Administration from Adelphi University, Garden City, NY; and is a
Certified Property Manager by the Institute of Property Management (IREM). Mr.
Napolitano is also a member of the New York State Association of Realtors (NYSAR)
International Council of Shopping Center (ICSC), Commercial Investment Real
Estate Institute (CIREI), and the Building Owners and Managers Institute (BOMI).
Michael Nelsen Senior Vice President, Mr. Nelsen oversees all the financial activities and asset management functions.
Chief Financial Officer Mr. Nelsen was most recently President of G. Soros Realty, Inc. and Director of
Real Estate for Soros Private Funds Management LLC. His responsibilities included
asset/portfolio management of real estate operations, financial reporting,
financings, asset acquisitions and dispositions. Previously, he was a partner in
the public accounting firm of David Berdon & Co. Mr. Nelsen has been a Certified
Public Accountant since 1971.
Joseph Povinelli Senior Vice President, Mr. Povinelli joined Acadia in 1999 with 19 years of retail leasing experience.
Leasing Since 1987 Mr. Povinelli had served as regional real estate representative for
Vornado Realty Trust, a New Jersey based Real estate investment trust, and was
responsible for the day to day leasing activity of approximately 3 million square
feet of the strip shopping center portfolio. Prior to this he served as leasing
representative for Net Properties Management, Great Neck, New York, responsible
for leasing of the strip shopping center and office building portfolio of the
mid-atlantic and southeast regions of the company. Mr. Povinelli received a
Bachelor of Science degree in Finance and Economics from C.W. Post College of Long
Island Universty.
Page 6
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Total Market Capitalization
---------------------------
Percent of
Percent of Total Market
(amounts in thousands) Total Equity Capitalization
------------ --------------
Total Common Shares Outstanding 95.0% 27,237 (1)
Common Operating Partnership ("OP") Units 4.3% 1,226
----------
Combined Common Shares and OP Units 28,463
Market Price at September 30, 2003 $ 10.98
----------
Equity Capitalization - Common Shares and OP Units 312,524
Preferred OP Units - at cost 2 0.7% 2,212
--- ----------
Total Equity Capitalization 100.0% 314,736 61.3%
=====
Debt Capitalization 198,777 38.7%
---------- ----
Total Market Capitalization $ 513,513 100.0%
========== =====
Weighted Average Outstanding Common Shares and O.P. Units
---------------------------------------------------------
Common
Shares O.P. Units Total
------ ---------- -----
- --------------------------------------------------------------------------------------
Quarter ended September 30, 2003 Basic 27,180,323 1,282,760 28,463,083
Quarter ended September 30, 2003 Diluted 28,245,059 1,282,760 29,527,819
Nine months ended September 30, 2003 Basic -26,319,632 2,131,942 28,451,574
Nine months ended September 30, 2003 Diluted -27,123,067 2,131,942 29,255,009
In connection with the acquisition of the Pacesetter Park Shopping Center in
1999, the Company issued 2,212 Preferred OP Units which are reflected
- --------------------------------------------------------------------------------------
Quarter ended September 30, 2002 Basic 24,974,176 3,449,232 28,423,408
Quarter ended September 30, 2002 Diluted 25,518,586 3,449,232 28,967,818
Nine months ended September 30, 2002 Basic -25,370,088 3,822,225 29,192,313
Nine months ended September 30, 2002 Diluted -25,552,558 3,822,225 29,374,783
Total Market Captialization
[GRAPHIC]
1. As of September 30, 2003, the Company had purchased 1,923,598 shares (net of
reissuance or 131,007 shares) under its Stock Repurchase Program.
2. In connection with the acquisition of the Pacesetter Park Shopping Center in
1999, the Company issued 2,212 Preferred OP Units which are reflected above at
their stated cost of $1,000 per unit.
3. Fixed-rate debt includes $86.8 million of notional principal fixed through
interest rate swap transactions and conversely, variable-rate debt excludes this
amount.
Page 7
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Shareholder Information
-----------------------
(amounts in thousands)
10 Largest Institutional/Non-Retail Shareholders 1 Percent of Out-
Common standing Common
Shareholder Shares Held Shares
- ---------------------------------------------- ----------- ----------------
Yale University 2 8,826 32.4%
Stanford University 2,133 7.8%
Wellington Management 1,691 6.2%
Cliffwood Partners 1,639 6.0%
The Vanderbilt University 1,347 4.9%
Harvard Private Capital Realty, Inc. 1,000 3.7%
Carnegie Corporation of New York 862 3.2%
Urdang Investment Management 748 2.7%
Vanguard Group 567 2.1%
LaSalle Investment Management 436 1.6%
----------- ----
Total of 10 Largest Institutional Shareholders 19,249 70.7%
=========== =====
Total of all Institutional Shareholders 21,044 77.3%
=========== =====
Operating Partnership
Unit Information
----------------
Percent
of Total O.P. Units
-------------------
Institutional O.P. Unit Holders - 0.0%
Employee/Trustee O.P. Unit Holders 1,068 87.1%
Other O.P. Unit Holders 158 12.9%
------------ ----
Total O.P. Units 1,226 100.0%
============ =====
Management and Trustee Ownership
Common Shares (not including options) 250
O.P. Units (see above) 1,068
------------
1,318
------------
1. Based on Schedule 13F filings with the U.S. Securities and Exchange
Commission
2. The Company and Yale University have established a voting trust whereby all
shares that Yale University owns in excess of 30% of the Company's outstanding
Common Shares, will be voted in the same proportion (excluding Yale) as all
other shares voted.
Total Share/O.P. Unit Ownership (Combined)
[GRAPHIC]
Page 8
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Statements of Operations - Consolidated 1
-----------------------------------------
Current Quarter and Year-to-Date
--------------------------------
(in thousands)
Year-to-Date Current Quarter
9 months 3 months
ended September 30, ended September 30,
2003 2003
-------------------------------- -------------------------------
Wholly Owned JV's 2 Total Wholly Owned JV's 2 Total
------------ ------ ----- ------------ ------ -----
PROPERTY REVENUES
Minimum rents $ 36,684 $ 5,578 $ 42,262 $ 12,439 $ 1,765 $ 14,204
Percentage rents 545 18 563 156 17 173
Expense reimbursements 9,625 1,468 11,093 3,012 490 3,502
Other property income 481 40 521 169 10 179
------------ -------- -------- ------------ ------- --------
47,335 7,104 54,439 15,776 2,282 18,058
------------ -------- -------- ------------ ------- --------
PROPERTY EXPENSES
Property operating 10,387 952 11,339 2,791 299 3,090
Real estate taxes 6,297 661 6,958 2,288 231 2,519
------------ -------- -------- ------------ ------- --------
16,684 1,613 18,297 5,079 530 5,609
------------ -------- -------- ------------ ------- --------
NET OPERATING INCOME - PROPERTIES 30,651 5,491 36,142 10,697 1,752 12,449
OTHER INCOME (EXPENSE)
General and administrative (7,931) (1) (7,932) (2,786) - (2,786)
Abandoned project costs - - - - - -
Lease termination income - - - - - -
Interest income 657 21 678 243 1 244
Asset and property management income 1,418 - 1,418 489 - 489
Property management expense (205) - (205) (58) - (58)
Straight-line rent income 666 (263) 403 196 96 292
Straight-line rents written off (108) - (108) (108) - (108)
Other income 1,218 - 1,218 - - -
------------ -------- -------- ------------ ------- --------
EBIDTA 26,366 5,248 31,614 8,673 1,849 10,522
Depreciation and amortization (11,277) (1,596) (12,873) (3,788) (561) (4,349)
Interest expense (8,413) (1,875) (10,288) (2,882) (659) (3,541)
Impairment of real estate - - - - - -
Gain on sale of properties 1,187 - 1,187 (25) - (25)
------------ -------- -------- ------------ ------- --------
Income before minority interest 7,863 1,777 9,640 1,978 629 2,607
Minority interest (1,181) (129) (1,310) (156) (27) (183)
------------ -------- -------- ------------ ------- --------
NET INCOME $ 6,682 $ 1,648 $ 8,330 $ 1,822 $ 602 $ 2,424
============ ======== ======== ============ ======= ========
Previous Quarters
3 months 3 months
ended June 30, ended March 31,
2003 2003
--------------------------------- --------------------------------
Wholly Owned JV's 2 Total Wholly Owned JV's 2 Total
------------ ------ ----- ------------ ------ -----
PROPERTY REVENUES
Minimum rents $ 12,389 $ 2,093 $ 14,482 $ 11,856 $ 1,720 $ 13,576
Percentage rents 95 (11) 84 294 12 306
Expense reimbursements 2,896 455 3,351 3,717 523 4,240
Other property income 161 12 173 151 18 169
------------ -------- -------- ------------ ------- --------
15,541 2,549 18,090 16,018 2,273 18,291
------------ -------- -------- ------------ ------- --------
PROPERTY EXPENSES
Property operating 3,330 292 3,622 4,266 361 4,627
Real estate taxes 1,812 227 2,039 2,197 203 2,400
------------ -------- -------- ------------ ------- --------
5,142 519 5,661 6,463 564 7,027
------------ -------- -------- ------------ ------- --------
NET OPERATING INCOME - PROPERTIES 10,399 2,030 12,429 9,555 1,709 11,264
OTHER INCOME (EXPENSE)
General and administrative (2,449) (1) (2,450) (2,696) - (2,696)
Abandoned project costs - - - - - -
Lease termination income - - - - - -
Interest income 164 - 164 250 20 270
Asset and property management income 531 - 531 398 - 398
Property management expense (59) - (59) (88) - (88)
Straight-line rent income 229 (221) 8 241 (138) 103
Straight-line rents written off - - - - - -
Other income - - - 1,218 - 1,218
------------ -------- -------- ------------ ------- --------
EBIDTA 8,815 1,808 10,623 8,878 1,591 10,469
Depreciation and amortization (3,888) (565) (4,453) (3,601) (470) (4,071)
Interest expense (2,805) (648) (3,453) (2,726) (568) (3,294)
Impairment of real estate - - - - - -
Gain on sale of properties - - - 1,212 - 1,212
------------ -------- -------- ------------ ------- --------
Income before minority interest 2,122 595 2,717 3,763 553 4,316
Minority interest (231) (43) (274) (794) (59) (853)
------------ -------- -------- ------------ ------- --------
NET INCOME $ 1,891 $ 552 $ 2,443 $ 2,969 $ 494 $ 3,463
============ ======== ======== ============ ======= ========
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 Company's equity in the earnings of
unconsolidated partnerships is reflected separately for revenues and expenses by
calculating it's pro-rata share for each of the above line items. In total, this
agrees with the equity in earnings of unconsolidated partnerships as reported in
the Company's Form 10Q's and 10K for the corresponding periods.
2. The Company currently invests in two JV's. The first is a 22% interest in
Acadia Strategic Opportunity Fund ("Acadia Acquisition"). The second JV is a 49%
interest in a 311,000 square foot shopping center located in White Plains, NY.
See "Statement of Operations - Joint Venture Activity" for additional detail.
Page 9
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Statements of Operations - Joint Venture Activity 1
---------------------------------------------------
Current Quarter and Year-to-Date
--------------------------------
(in thousands)
Year-to-Date
9 months
ended September 30,
2003
---------------------------------------------------------
Acadia Pro-rata Pro-rata Pro-rata
Acquisition share Crossroads share Total
----------- ----- ---------- ----- -----
PROPERTY REVENUES
Minimum rents $ 16,051 $ 3,568 $ 4,102 $ 2,010 $ 5,578
Percentage rents 46 10 17 8 18
Expense reimbursements 2,435 541 1,892 927 1,468
Other property income 81 18 46 22 40
---------- -------- --------- --------- --------
18,613 4,137 6,057 2,967 7,104
---------- -------- --------- --------- --------
PROPERTY EXPENSES
Property operating 2,573 571 778 381 952
Real estate taxes 707 157 1,029 504 661
---------- -------- --------- --------- --------
3,280 728 1,807 885 1,613
---------- -------- --------- --------- --------
NET OPERATING INCOME - PROPERTIES 15,333 3,409 4,250 2,082 5,491
OTHER INCOME (EXPENSE)
General and administrative (8) (1) - - (1)
Abandoned project costs - - - - -
Lease termination income - - - - -
Interest income 93 21 - - 21
Asset and property management income - - - - -
Asset and property management expense 2 (1,606) - - - -
Straight-line rent income (1,313) (292) 60 29 (263)
Straight-line rents written off - - - - -
Other income - - - - -
---------- -------- --------- --------- --------
EBIDTA 12,499 3,137 4,310 2,111 5,248
Depreciation and amortization 3 (4,918) (1,094) (424) (502) (1,596)
Interest expense 3 (4,343) (965) (1,940) (910) (1,875)
Impairment of real estate - - - - -
Gain on sale of properties - - - - -
-- -- -- -- --
Income before minority interest 3,238 1,078 1,946 699 1,777
Minority interest - (78) - (51) (129)
---------- -------- --------- --------- --------
NET INCOME $ 3,238 $ 1,000 $ 1,946 $ 648 $ 1,648
========== ======== ========= ========= ========
Current Quarter
3 months
ended September 30,
2003
-----------------------------------------------------------
Acadia Pro-rata Pro-rata Pro-rata
Acquisition share Crossroads share Total
----------- ----- ---------- ----- -----
PROPERTY REVENUES
Minimum rents $ 4,944 $ 1,099 $ 1,360 $ 666 $ 1,765
Percentage rents 41 9 17 8 17
Expense reimbursements 797 177 639 313 490
Other property income 12 3 14 7 10
---------- -------- --------- --------- --------
5,794 1,288 2,030 994 2,282
---------- -------- --------- --------- --------
PROPERTY EXPENSES
Property operating 767 170 264 129 299
Real estate taxes 264 59 351 172 231
---------- -------- --------- --------- --------
1,031 229 615 301 530
---------- -------- --------- --------- --------
NET OPERATING INCOME - PROPERTIES 4,763 1,059 1,415 693 1,752
OTHER INCOME (EXPENSE)
General and administrative (1) - - - -
Abandoned project costs - - - - -
Lease termination income - - - - -
Interest income 3 1 - - 1
Asset and property management income - - - - -
Asset and property management expense 2 (562) - - - -
Straight-line rent income 432 96 - - 96
Straight-line rents written off - - - - -
Other income - - - - -
---------- -------- --------- --------- --------
EBIDTA 4,635 1,156 1,415 693 1,849
Depreciation and amortization 3 (1,771) (394) (140) (167) (561)
Interest expense 3 (1,584) (352) (654) (307) (659)
Impairment of real estate - - - - -
Gain on sale of properties - - - - -
---------- -------- --------- --------- --------
Income before minority interest 1,280 410 621 219 629
Minority interest - (18) - (9) (27)
---------- -------- --------- --------- --------
NET INCOME $ 1,280 $ 392 $ 621 $ 210 $ 602
========== ======== ========= ========= ========
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 Company's equity in the
earnings of unconsolidated partnerships is reflected separately for
revenues and expenses by by calculating it's pro-rata share for each of the
above line items. In total, this agrees with the equity in earnings of
unconsolidated partnerships as reported in the Company's Form 10Q's and 10K
for the corresponding periods.
The Company currently invests in two JV's. The first is a 22% interest in
Acadia Strategic Opportunity Fund ("Acadia
AcquisiThenCompanyccurrentlyrinvests inntwohJV's.tThesfirst is a 22%
interest in Acadia Strategic Opportunity Fund ("Acadia Acquisition"), which
owns, or has an ownership interest in 30 properties totalling approximately
2,044,000 square feet. The second JV investment is a 49% interest in a
311,000 square 30oproperties totallingcapproximately 2,044,000 square feet.
The second JV investment is a 49% interest in a 311,000 square foot
shopping center located in White Plains, NY ("Crossroads"). White Plains,
NY ("Crossroads").
2. Acadia Acquisition pays asset management and property management fees to
Acadia Realty L.P. As such, the Company does not recognize a pro-rata share
of these expenses in its consolidated financial statements. in its
consolidated financial statements.
3. The Company has obtained two interest rate swaps, effectively fixing the
interest rate on its pro-rata portion of the mortgage debt from its
investment in Crossroads. Acadia's pro-rata share of its interest expense
has been adjusted for the effect of these swaps. In addition to its
pro-rata share of depreciation, the Company recognizes depreciation on its
increased basis in Crossroads. basis in Crossroads.
Page 10
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Statements of Operations - Joint Venture Activity 1
---------------------------------------------------
Current Quarter and Year-to-Date
--------------------------------
(in thousands)
Previous Quarters
3 months
ended June 30,
2003
----------------------------------------------------------
Acadia Pro-rata Pro-rata Pro-rata
Acquisition share Crossroads share Total
----------- ----- ---------- ----- -----
PROPERTY REVENUES
Minimum rents $ 6,372 $ 1,416 $ 1,381 $ 677 $ 2,093
Percentage rents - - (22) (11) (11)
Expense reimbursements 662 147 628 308 455
Other property income 24 5 15 7 12
---------- -------- --------- --------- --------
7,058 1,568 2,002 981 2,549
---------- -------- --------- --------- --------
PROPERTY EXPENSES
Property operating 856 190 208 102 292
Real estate taxes 248 55 351 172 227
---------- -------- --------- --------- --------
1,104 245 559 274 519
---------- -------- --------- --------- --------
NET OPERATING INCOME - PROPERTIES 5,954 1,323 1,443 707 2,030
OTHER INCOME (EXPENSE)
General and administrative (6) (1) - - (1)
Abandoned project costs - - - - -
Lease termination income - - - - -
Interest income 2 - - - -
Asset and property management income - - - - -
Asset and property management expense 2 (602) - - - -
Straight-line rent income (1,116) (248) 55 27 (221)
Straight-line rents written off - - - - -
Other income - - - - -
---------- -------- --------- --------- --------
EBIDTA 4,232 1,074 1,498 734 1,808
Depreciation and amortization 3 (1,781) (396) (145) (169) (565)
Interest expense 3 (1,554) (345) (647) (303) (648)
Impairment of real estate - - - - -
Gain on sale of properties - - - - -
---------- -------- --------- --------- --------
Income before minority interest 897 333 706 262 595
Minority interest - (24) - (19) (43)
---------- -------- --------- --------- --------
NET INCOME $ 897 $ 309 $ 706 $ 243 $ 552
========== ======== ========= ========= ========
3 months
ended March 31,
2003
----------------------------------------------------------
Acadia Pro-rata Pro-rata Pro-rata
Acquisition share Crossroads share Total
----------- ----- ---------- ----- -----
PROPERTY REVENUES
Minimum rents $ 4,735 $ 1,053 $ 1,361 $ 667 $ 1,720
Percentage rents 5 1 22 11 12
Expense reimbursements 976 217 625 306 523
Other property income 45 10 17 8 18
---------- -------- --------- --------- --------
5,761 1,281 2,025 992 2,273
---------- -------- --------- --------- --------
PROPERTY EXPENSES
Property operating 950 211 306 150 361
Real estate taxes 195 43 327 160 203
---------- -------- --------- --------- --------
1,145 254 633 310 564
---------- -------- --------- --------- --------
NET OPERATING INCOME - PROPERTIES 4,616 1,027 1,392 682 1,709
OTHER INCOME (EXPENSE)
General and administrative (1) - - - -
Abandoned project costs - - - - -
Lease termination income - - - - -
Interest income 88 20 - - 20
Asset and property management income - - - - -
Asset and property management expense 2 (442) - - - -
Straight-line rent income (629) (140) 5 2 (138)
Straight-line rents written off - - - - -
Other income - - - - -
---------- -------- --------- --------- --------
EBIDTA 3,632 907 1,397 684 1,591
Depreciation and amortization 3 (1,366) (304) (139) (166) (470)
Interest expense 3 (1,205) (268) (639) (300) (568)
Impairment of real estate - - - - -
Gain on sale of properties - - - - -
---------- -------- --------- --------- --------
Income before minority interest 1,061 335 619 218 553
Minority interest - (36) - (23) (59)
---------- -------- --------- --------- --------
NET INCOME $ 1,061 $ 299 $ 619 $ 195 $ 494
========== ======== ========= ========= ========
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 Company's equity in the
earnings of unconsolidated partnerships is reflected separately for
revenues and expenses by by calculating it's pro-rata share for each of the
above line items. In total, this agrees with the equity in earnings of
unconsolidated partnerships as reported in the Company's Form 10Q's and 10K
for the corresponding periods.
The Company currently invests in two JV's. The first is a 22% interest in
Acadia Strategic Opportunity Fund ("Acadia
AcquisiThenCompanyccurrentlyrinvests inntwohJV's.tThesfirst is a 22%
interest in Acadia Strategic Opportunity Fund ("Acadia Acquisition"), which
owns, or has an ownership interest in 30 properties totalling approximately
2,044,000 square feet. The second JV investment is a 49% interest in a
311,000 square 30oproperties totallingcapproximately 2,044,000 square feet.
The second JV investment is a 49% interest in a 311,000 square foot
shopping center located in White Plains, NY ("Crossroads"). White Plains,
NY ("Crossroads").
2. Acadia Acquisition pays asset management and property management fees to
Acadia Realty L.P. As such, the Company does not recognize a pro-rata share
of these expenses in its consolidated financial statements. in its
consolidated financial statements.
3. The Company has obtained two interest rate swaps, effectively fixing the
interest rate on its pro-rata portion of the mortgage debt from its
investment in Crossroads. Acadia's pro-rata share of its interest expense
has been adjusted for the effect of these swaps. In addition to its
pro-rata share of depreciation, the Company recognizes depreciation on its
increased basis in Crossroads. basis in Crossroads.
Page 11
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Statements of Operations - Activity by Source 1
(in thousands)
Year-to-Date Current Quarter
9 months 3 months
ended September 30, ended September 30,
2003 2003
-------------------------------------------------- -------------------------------------------
Retail Multi-Family Corporate Total Retail Multi-Family Corporate Total
PROPERTY REVENUES
Minimum rents $ 37,156 $ 5,106 $ - $ 42,262 $ 12,480 $ 1,724 $ - $ 14,204
Percentage rents 563 - - 563 173 - - 173
Expense reimbursements 11,093 - - 11,093 3,502 - - 3,502
Other property income 197 324 - 521 61 118 - 179
---------- ---------- ------------ -------- ---------- -------- -------- --------
49,009 5,430 - 54,439 16,216 1,842 - 18,058
---------- ---------- ------------ -------- ---------- -------- -------- --------
PROPERTY EXPENSES
Property operating 8,647 2,692 - 11,339 2,097 993 - 3,090
Real estate taxes 6,721 237 - 6,958 2,440 79 - 2,519
---------- ---------- ------------ -------- ---------- -------- -------- --------
15,368 2,929 - 18,297 4,537 1,072 - 5,609
---------- ---------- ------------ -------- ---------- -------- -------- --------
NET OPERATING INCOME - PROPERTIES 33,641 2,501 - 36,142 11,679 770 - 12,449
OTHER INCOME (EXPENSE)
General and administrative - - (7,932) (7,932) - - (2,786) (2,786)
Abandoned project costs - - - - - - - -
Lease termination income - - - - - - - -
Interest income - - 678 678 - - 244 244
Asset and property management income - - 1,418 1,418 - - 489 489
Other property management fees (62) (143) - (205) (20) (38) - (58)
Straight-line rent income 403 - - 403 292 - - 292
Straight-line rents written off (108) - - (108) (108) - - (108)
Other income 1,218 - - 1,218 - - - -
---------- ---------- ------------ -------- ---------- -------- -------- --------
EBIDTA 35,092 2,358 (5,836) 31,614 11,843 732 (2,053) 10,522
Depreciation and amortization (11,650) (988) (235) (12,873) (3,922) (339) (88) (4,349)
Interest expense (9,139) (1,149) - (10,288) (3,159) (382) - (3,541)
Impairment of real estate - - - - - - - -
Gain on sale of properties 1,187 - - 1,187 (25) - - (25)
---------- ---------- ------------ -------- ---------- -------- -------- --------
Income before minority interest 15,490 221 (6,071) 9,640 4,737 11 (2,141) 2,607
Minority interest (1,739) (22) 451 (1,310) (275) - 92 (183)
---------- ---------- ------------ -------- ---------- -------- -------- --------
NET INCOME $ 13,751 $ 199 $ (5,620) $ 8,330 $ 4,462 $ 11 $ (2,049) $ 2,424
========== ========== ============ ======== ========== ======== ======== ========
Previous Quarters
3 months 3 months
ended June 30, ended March 31,
2003 2003
-------------------------------------------------- -------------------------------------------
Retail Multi-Family Corporate Total Retail Multi-Family Corporate Total
PROPERTY REVENUES
Minimum rents $ 12,783 $ 1,699 $ - $ 14,482 $ 11,893 $ 1,683 $ - $ 13,576
Percentage rents 84 - - 84 306 - - 306
Expense reimbursements 3,351 - - 3,351 4,240 - - 4,240
Other property income 85 88 - 173 51 118 - 169
---------- ---------- ------------ -------- ---------- -------- -------- --------
16,303 1,787 - 18,090 16,490 1,801 - 18,291
---------- ---------- ------------ -------- ---------- -------- -------- --------
PROPERTY EXPENSES
Property operating 2,683 939 - 3,622 3,867 760 - 4,627
Real estate taxes 1,957 82 - 2,039 2,324 76 - 2,400
---------- ---------- ------------ -------- ---------- -------- -------- --------
4,640 1,021 - 5,661 6,191 836 - 7,027
---------- ---------- ------------ -------- ---------- -------- -------- --------
NET OPERATING INCOME - PROPERTIES 11,663 766 - 12,429 10,299 965 - 11,264
OTHER INCOME (EXPENSE)
General and administrative - - (2,450) (2,450) - - (2,696) (2,696)
Abandoned project costs - - - - - - - -
Lease termination income - - - - - - - -
Interest income - - 164 164 - - 270 270
Asset and property management income - - 531 531 - - 398 398
Other property management fees (21) (38) - (59) (21) (67) - (88)
Straight-line rent income 8 - - 8 103 - - 103
Straight-line rents written off - - - - - - - -
Other income - - - - 1,218 - - 1,218
---------- ---------- ------------ -------- ---------- -------- -------- --------
EBIDTA 11,650 728 (1,755) 10,623 11,599 898 (2,028) 10,469
Depreciation and amortization (4,049) (328) (76) (4,453) (3,679) (321) (71) (4,071)
Interest expense (3,070) (383) - (3,453) (2,910) (384) - (3,294)
Impairment of real estate - - - - - - - -
Gain on sale of properties - - - - 1,212 - - 1,212
---------- ---------- ------------ -------- ---------- -------- -------- --------
Income before minority interest 4,531 17 (1,831) 2,717 6,222 193 (2,099) 4,316
Minority interest (406) (1) 133 (274) (1,058) (21) 226 (853)
---------- ---------- ------------ -------- ---------- -------- -------- --------
NET INCOME $ 4,125 $ 16 $ (1,698 $ 2,443 $ 5,164 $ 172 $ (1,873) $ 3,463
========== ========== ============ ======== ========== ======== ======== ========
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 Company's equity in the
earnings of unconsolidated partnerships is reflected separately for
revenues and expenses by calculating it's pro-rata share for each of the
above
Page 12
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Statements of Operations - Current v. Historical 1
(in thousands)
Current Quarter Historical Quarter
3 months 3 months
ended September 30, ended September 30,
2003 2002
------------------------------------------------- ----------------------------------------
Discontinued Discontinued
Wholly Owned JV's 2 Operations Total Wholly Owned JV's Operations Total
------------ ------------ ------- --------- ---------- ------ ------- --------
PROPERTY REVENUES
Minimum rents $ 12,439 $ 1,765 $ - $ 14,204 $ 11,996 $ 650 $ 478 $ 13,124
Percentage rents 156 17 - 173 161 10 (33) 138
Expense reimbursements 3,012 490 - 3,502 2,795 268 163 3,226
Other property income 169 10 - 179 144 3 5 152
------------ ------------ ------- --------- ---------- ------ ------- --------
15,776 2,282 - 18,058 15,096 931 613 16,640
------------ ------------ ------- --------- ---------- ------ ------- -------- --
PROPERTY EXPENSES
Property operating 2,791 299 - 3,090 2,790 142 115 3,047
Real estate taxes 2,288 231 - 2,519 2,191 164 115 2,470
------------ ------------ ------- --------- ---------- ------ ------- -------- -
5,079 530 - 5,609 4,981 306 230 5,517
------------ ------------ ------- --------- ---------- ------ ------- -------- -
NET OPERATING INCOME - PROPERTIES 10,697 1,752 - 12,449 10,115 625 383 11,123
OTHER INCOME (EXPENSE)
General and administrative (2,786) - - (2,786) (2,160) (3) - (2,163)
Abandoned project costs - - - - (274) - - (274)
Lease termination income - - - - - - - -
Interest income 243 1 - 244 517 - 2 519
Asset and property management income 489 - - 489 316 - - 316
Property management expense (58) - - (58) (40) - - (40)
Straight-line rent income 196 96 - 292 179 (21) 6 164
Straight-line rents written off (108) - - (108) - - - -
Other income - - - - 100 - - 100
------------ ------------ ------- --------- ---------- ------ ------- --------
EBIDTA 8,673 1,849 - 10,522 8,753 601 391 9,745
Depreciation and amortization (3,788) (561) - (4,349) (3,701) (170) (160) (4,031)
Interest expense (2,882) (659) - (3,541) (2,781) (330) (108) (3,219)
Impairment of real estate - - - - - - (197) (197)
Gain on sale of properties (25) - - (25) - - (49) (49)
------------ ------------ ------- --------- ---------- ------ ------- --------
Income before minority interest 1,978 629 - 2,607 2,271 101 (123) 2,249
Minority interest (156) (27) - (183) (371) (12) 15 (368)
------------ ------------ ------- --------- ---------- ------ ------- --------
NET INCOME $ 1,822 $ 602 $ - $ 2,424 $ 1,900 $ 89 $ (108) $ 1,881
============ ============ ======= ========= ========== ====== ======= ========
Current Year-to-Date Historical Year-to-Date
9 months 9 months
ended September 30, ended September 30,
2003 2002
------------------------------------------------- ----------------------------------------
Discontinued Discontinued
Wholly Owned JV's 2 Operations Total Wholly Owned JV's Operations Total
------------ ------------ ------- --------- ---------- ------ ------- --------
PROPERTY REVENUES
Minimum rents $ 36,684 $ 5,578 $ - $ 42,262 $ 35,243 $1,865 $ 4,451 $ 41,559
Percentage rents 545 18 - 563 602 67 305 974
Expense reimbursements 9,625 1,468 - 11,093 8,061 684 1,097 9,842
Other property income 481 40 - 521 453 22 215 690
------------ ------------ ------- --------- ---------- ------ ------- --------
47,335 7,104 - 54,439 44,359 2,638 6,068 53,065
------------ ------------ ------- --------- ---------- ------ ------- --------
PROPERTY EXPENSES
Property operating 10,387 952 - 11,339 7,993 327 1,114 9,434
Real estate taxes 6,297 661 - 6,958 6,281 474 834 7,589
------------ ------------ ------- --------- ---------- ------ ------- --------
16,684 1,613 - 18,297 14,274 801 1,948 17,023
------------ ------------ ------- --------- ---------- ------ ------- --------
NET OPERATING INCOME - PROPERTIES 30,651 5,491 - 36,142 30,085 1,837 4,120 36,042
OTHER INCOME (EXPENSE)
General and administrative (7,931) (1) - (7,932) (7,287) (3) - (7,290)
Abandoned project costs - - - - (274) - - (274)
Lease termination income - - - - 3,945 - - 3,945
Interest income 657 21 - 678 1,452 - 23 1,475
Asset and property management income 1,418 - - 1,418 957 - - 957
Property management expense (205) - - (205) (120) - - (120)
Straight-line rent income 666 (263) - 403 653 (46) (8) 599
Straight-line rents written off (108) - - (108) (100) - - (100)
Other income 1,218 - - 1,218 391 - - 391
------------ ------------ ------- --------- ---------- ------ ------- --------
EBIDTA 26,366 5,248 - 31,614 29,702 1,788 4,135 35,625
Depreciation and amortization (11,277) (1,596) - (12,873) (10,959) (500) (1,606) (13,065)
Interest expense (8,413) (1,875) - (10,288) (8,207) (963) (1,515) (10,685)
Impairment of real estate - - - - - - (197) (197)
Gain on sale of properties 1,187 - - 1,187 1,530 - 1,783 3,313
------------ ------------ ------- --------- ---------- ------ ------- --------
Income before minority interest 7,863 1,777 - 9,640 12,066 325 2,600 14,991
Minority interest (1,181) (129) - (1,310) (2,303) (43) (476) (2,822)
------------ ------------ ------- --------- ---------- ------ ------- --------
NET INCOME $ 6,682 $ 1,648 $ - $ 8,330 $ 9,763 $ 282 $ 2,124 $ 12,169
============ ============ ======= ========= ========== ====== ======= ========
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 Company's equity in the
earnings of unconsolidated partnerships is reflected separately for
revenues and expenses by calculating it's pro-rata share for each of the
above line items. In total, this agrees with the equity in earnings of
unconsolidated partnerships as reported in the Company's Form 10Q's and 10K
for the corresponding periods. Certain 2002 quarterly amounts have been
reclassified to conform with the presentation of discontinued operations
for the year ended December 31, 2002 (see note 3).
2. The Company currently invests in two JV's. The first is a 22% interest in
Acadia Strategic Opportunity Fund ("Acadia Acquisition"). The second JV is
a 49% interest in a 311,000 square foot shopping center located in White
Plains, NY. See "Statement of Operations - Joint Venture Activity" for
additional detail.
3. Discontinued operations represent the activity related to all properties
sold since January 1, 2002. All of these properties were sold prior to
January 1, 2003.
Page 13
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Net Operating Income (NOI) - Same Property Performance 1
--------------------------------------------------------
(in thousands)
Growth in Same Growth in Same
Property NOI - Property NOI -
Continuing Operations Continuing Operations
Current Historical Favorable Current Historical Favorable
Quarter Quarter (unfavorable) Year-to-Date Year-to Date (unfavorable)
----------------------------------------- --------------------------------------------------
Reconciliation of total NOI
to same property NOI: 3 months 3 months 9 months 9 months
ended ended ended ended
September September September September
30, 2003 30, 2002 30, 2003 30, 2002
--------- -------- -------- ---------
NOI - Wholly owned properties $ 10,697 $ 10,498 $ 30,651 $ 34,205
NOI - Joint Ventures
(Unconsolidated partnerships) 1,752 625 5,491 1,837
--------- -------- --------- ---------
Total NOI 12,449 11,123 36,142 36,042
NOI - Properties Acquired (1,121) (24) (3,475) (24)
NOI - Redevelopment Properties (1,172) (463) (3,232) (1,179)
NOI - Properties Sold / Held for sale
("Discontinued Operations") - (383) - (4,120)
--------- -------- --------- ---------
$ 10,156 $ 10,253 -0.9% $ 29,435 $ 30,719 -4.2%
========= ======== === ========= ========= ===
Same property NOI by portfolio component and revenues/expenses:
Shopping Center Portfolio Shopping Center Portfolio
Revenues $ 13,527 $ 13,678 -1.1% $ 41,012 $ 40,210 2.0%
Expenses 4,140 4,184 1.1% 14,069 12,082 -16.4%
--------- -------- --- --------- --------- ----
9,387 9,494 -1.1% 26,943 28,128 -4.2%
--------- -------- --- --------- --------- ---
Residential Properties (2 properties) Residential Properties (2 properties)
Revenues 1,841 1,719 7.1% 5,422 5,186 4.6%
Expenses 1,072 960 -11.7% 2,930 2,595 -12.9%
--------- -------- ---- --------- --------- ----
769 759 1.3% 2,492 2,591 -3.8%
--------- -------- --- --------- --------- ---
$ 10,156 $ 10,253 -0.9% $ 29,435 $ 30,719 -4.2%
========= ======== === ========= ========= ===
1. The above amounts includes the pro-rata activity related to the Company's
joint ventures.
Page 14
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Funds from Operations ("FFO")( 1)
- -------------------------------------
(in thousands) 2003
Current Current Previous Quarters
Year-to-Date Quarter
9 months 3 months 3 months 3 months
ended ended ended ended
September 30, September June 30, March 31,
Funds from operations ("FFO"): Notes 2003 30, 2003 2003 2003
- -------------------------------------- ------------- ----------- ----------- ----------
Net Income $8,330 $2,424 $2,443 $3,463
Add back:
Depreciation of real estate and
amortization of leasing costs:
Wholly owned and consolidated subsidiaries 10,541 3,571 3,571 3,399
Unconsolidated subsidiaries 1,557 547 551 459
Income attributable to Operating
Partnership units 2 758 117 203 438
Gain on sale of properties 3 - - - -
------------- ----------- ----------- ----------
21,186 6,659 6,768 7,759
Less: FFO related to discontinued
operations 4 - - - -
------------- ----------- ----------- ----------
FFO - Basic -
Continuing
Operations 6 21,186 6,659 6,768 7,759
Distributions on Preferred OP Units 150 50 50 50
------------- ----------- ----------- ----------
FFO - Diluted -
Continuing
Operations $21,336 $6,709 $6,818 $7,809
============= =========== =========== ==========
Adjusted Funds from operations ("AFFO"):
==================================================
Diluted FFO $21,336 $6,709 $6,818 $7,809
Straight line rent, net (295) (184) (8) (103)
Non real-estate depreciation 235 88 76 71
Amortization of finance costs 531 143 246 142
Tenant improvements (680) (174) (160) (346)
Leasing commissions (54) - (9) (45)
Capital expenditures (2,953) (1,325) (882) (746)
------------- ----------- ----------- ----------
AFFO $18,120 $5,257 $6,081 $6,782
============= =========== =========== ==========
Funds Available for Distribution
("FAD")
====================================================
AFFO $18,120 $5,257 $6,081 $6,782
Scheduled prinicpal repayments (3,646) (1,236) (1,185) (1,225)
------------- ----------- ----------- ----------
FAD $14,474 $4,021 $4,896 $5,557
============= =========== =========== ==========
Total weighted average shares
and OP Units:
Basic 28,452 28,463 28,456 28,436
============= =========== =========== ==========
Diluted 29,255 29,528 29,244 28,993
============= =========== =========== ==========
FFO per share:
FFO per share - Basic
FFO per share 5,6 $0.74 $0.23 $0.24 $0.27
============= =========== =========== ==========
FFO per share - Continuing
operations 5,6 $0.74 $0.23 $0.24 $0.27
============= =========== =========== ==========
FFO per share - Diluted
FFO per share 5,6 $0.73 $0.23 $0.23 $0.27
============= =========== =========== ==========
FFO per share - Continuing
operations 5,6 $0.73 $0.23 $0.23 $0.27
============= =========== =========== ==========
AFFO per share - Basic 5,6 $0.63 $0.18 $0.21 $0.24
============= =========== =========== ==========
AFFO per share - Diluted 5,6 $0.62 $0.18 $0.21 $0.23
============= =========== =========== ==========
FAD per share - Basic 5,6 $0.50 $0.14 $0.17 $0.19
============= =========== =========== ==========
FAD per share - Diluted 5,6 $0.49 $0.14 $0.17 $0.19
============= =========== =========== ==========
2002
Historic Historic
Year-to-Date Quarter
9 months 3 months
ended ended
September 30, September 30,
Funds from operations ("FFO"): 2002 2002
- -------------------------------------- --------------- ---------------
Net Income $12,169 $1,881
Add back:
Depreciation of real estate and
amortization of leasing costs:
Wholly owned and consolidated subsidiaries 11,680 3,540
Unconsolidated subsidiaries 479 163
Income attributable to Operating
Partnership units 1,980 276
Gain on sale of properties (1,783) 49
--------------- ---------------
24,525 5,909
Less: FFO related to discontinued
operations (2,575) (276)
--------------- ---------------
FFO - Basic -
Continuing
Operations $21,950 $5,633
=============== ===============
Distributions on Preferred OP Units
FFO - Diluted -
Continuing
Operations
Adjusted Funds from operations ("AFFO"):
=================================================
Diluted FFO
Straight line rent, net
Non real-estate depreciation
Amortization of finance costs
Tenant improvements
Leasing commissions
Capital expenditures
AFFO
Funds Available for Distribution
("FAD")
=============================================
AFFO
Scheduled prinicpal repayments
FAD
Total weighted average shares
and OP Units:
Basic 29,192 28,423
=============== ===============
Diluted 29,375 28,968
=============== ===============
FFO per share:
FFO per share - Basic
FFO per share $0.84 $0.21
=============== ===============
FFO per share - Continuing
operations $0.75 $0.20
=============== ===============
FFO per share - Diluted
FFO per share $0.84 $0.21
=============== ===============
FFO per share - Continuing
operations $0.75 $0.20
=============== ===============
AFFO per share - Basic
AFFO per share - Diluted
FAD per share - Basic
FAD per share - Diluted
- ------------------------------------------------------------------------------------------------------------------------
(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.
(2) Reflects OP Unitholders interest in OP net income.
(3) 2002 FFO has been restated to include a $197 impairment of real
estate charge and to include the $957 gain from the sale of
undepreciated property (net of minority interest of $573). FFO for
the quarter ended March 31, 2003 includes a $659 gain on the sale
of undepreciated property.
(4) Discontinued operations represent the activity related to all
properties sold since January 1, 2001.
(5) Assumes full conversion of O.P. Units into Common Shares. Diluted
FFO assumes conversion of Preferred O.P. Units as well as assumed
exercise of outstanding share options. Quarterly Preferred OP Unit
distributions of $50 are added back for the purposes of
calculating diluted FFO. Refer to "Market Capitalization" for
weighted-average basic and diluted shares.
(6) FFO for the nine months ended September 30, 2002 includes $3,800
($0.13 per share) of lease termination income received during the
period. FFO for the nine months ended September 30, 2003 includes
a $1,218 ($0.04 per share) lump sum rent payment in connection
with a tenant's assignment of an anchor lease at the Branch Plaza.
Page 15
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Capital Expenditures
-----------------------------------
--------------- --------------
Year-to-Date Current ----- Previous Quarters -----
Quarter
9 months 3 months 3 months 3 months
ended ended ended ended
September 30, September 30, June 30, 2003 March 31, 2003
2003 2003
---------------------------------------------- --------------
Leasing Commissions: $ 54 $ - $ 9 $ 45
-------------- ------------- ------------- -------------
Tenant Improvements: 680 174 160 346
-------------- ------------- ------------- -------------
Capital Expenditures:
Retail 1,868 937 526 405
Residential 1,085 388 356 341
-------------- ------------- ------------- -------------
2,953 1,325 882 746
-------------- ------------- ------------- -------------
Redevelopments( 1): 3,479 1,309 1,094 1,076
-------------- ------------- ------------- -------------
Total $ 7,166 $ 2,808 $ 2,145 $ 2,213
============== ============= ============= =============
Expenditures for real estate and
improvements as reported on the
Company's Statement of Cash Flows $ 7,112 $ 2,808 $ 2,136 $ 2,168
Expenditures included in deferred
leasing 54 - 9 45
-------------- ------------- ------------- -------------
costs in Statement of Cash Flows $ 7,166 $ 2,808 $ 2,145 $ 2,213
============== ============= ============= =============
(1) Represents costs (including leasing commissions) exclusively at
the Gateway Shopping Center and Elmwood Park Shopping Center.
Page 16
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Consolidated Balance Sheets
---------------------------
(in thousands)
September 30, December 31,
2003 2002
-------------- -------------
ASSETS
Real estate
Land $ 54,890 $ 54,890
Buildings and improvements 365,941 352,359
Construction in progress 4,750 6,629
------------ ------------
425,581 413,878
Less: accumulated depreciation (94,962) (85,062)
------------ ------------
Net real estate 330,619 328,816
Cash and cash equivalents 29,631 45,168
Cash in escrow 4,079 3,447
Investments in unconsolidated
partnerships 12,930 6,164
Rents receivable, net of $1,514 and
$1,374 allowance, respectively 4,027 2,567
Straight-line rents receivable, net of
$910 allowance 4,949 4,392
Notes Receivable 3,563 6,795
Prepaid expenses 3,206 2,042
Due from related parties 992 -
Deferred charges, net 9,795 10,360
Other assets 1,630 1,184
------------ ------------
$ 405,421 $ 410,935
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgage notes payable $ 198,777 $ 202,361
Accounts payable and accrued expenses 10,892 8,528
Dividends and distributions payable 4,191 3,744
Due to related parties - 174
Deferred gain on sale of properties - 1,212
Interest rate swap payable 5,083 5,470
Other liabilities 2,694 2,998
------------ ------------
Total liabilities 221,637 224,487
------------ ------------
Minority interest in Operating
Partnership 8,435 22,746
Minority interests in majority owned
partnerships 1,842 2,379
------------ ------------
Total minority interests 10,277 25,125
------------ ------------
Shareholders' equity:
Common shares 27 25
Additional paid-in capital 182,711 170,851
Accumulated other comprehensive income (6,552) (6,874)
Deficit (2,679) (2,679)
------------ ------------
Total shareholders' equity 173,507 161,323
------------ ------------
$ 405,421 $ 410,935
============ ============
Page 17
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Selected Operating Ratios
-------------------------
3 months ended September 30, 9 months ended September 30,
2003 2002 2003 2002
----------- ---------- ------------ -----------
Coverage Ratios (1)
- ---------------------------------
Interest Coverage Ratio
EBIDTA (2) $10,522 $9,745 $31,614 $31,680
Divided by Interest expense 3,541 3,219 10,288 10,685
----------- ---------- ------------ -----------
2.97 x 3.03 x 3.07 x 2.96 x
Fixed Charge Coverage Ratio
EBIDTA $10,522 $9,745 $31,614 $31,680
Divided by ( Interest expense 3,541 3,219 10,288 10,685
+ Preferred Dividends) (3) 50 50 150 150
----------- ---------- ------------ -----------
2.93 x 2.98 x 3.03 x 2.92 x
Debt Service Coverage Ratio
EBIDTA $10,522 $9,745 $31,614 $31,680
Divided by ( Interest expense 3,541 3,219 10,288 10,685
+ Principal Amortization) (4) 1,236 986 3,646 3,155
----------- ---------- ------------ -----------
2.20 x 2.32 x 2.27 x 2.29 x
Payout Ratios
- --------------------------------
FFO Payout Ratio
Dividends (Shares) & Distributions (O.P. Units)
paid - $0.14.5 per Share/O.P. Unit for 2003
and $0.13 for 2002. $4,141 $3,695 $12,409 $11,085
FFO (2) 6,659 5,909 21,186 20,580
----------- ---------- ------------ -----------
62% 63% 59% 54%
AFFO Payout Ratio
Dividends (Shares) & Distributions (O.P. Units) $4,141 $12,409
AFFO 5,207 17,970
----------- ------------
80% 69%
FAD Payout Ratio
Dividends (Shares) & Distributions (O.P. Units) $4,141 $12,409
FAD 3,971 14,324
----------- ------------
(5) 104% 87%
Overhead Ratios
- ---------------------------------
G&A/Real Estate Revenues
General and Administrative expense $2,786 $2,163 $7,932 $7,290
Real Estate Revenues 18,058 16,640 54,439 53,065
----------- ---------- ------------ -----------
15% 13% 15% 14%
Leverage Ratios
- ---------------------------------
Debt/Total Market Capitalization (6)
Debt $198,777 $203,244
Total Market Capitalization 513,513 415,765
----------- ----------
39% 49%
Debt + Preferred Equity (Preferred O.P. Units) $200,989 $205,456
Total Market Capitalization 513,513 415,765
----------- ----------
39% 49%
Notes:
(1) Quarterly results for 2003 and 2002 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 EBIDTA, interest expense and principal amortization
related to the Company's joint venture investments in
unconsolidated partnerships.
(2) EBIDTA and FFO for the nine months ended September 30, 2002 have
been adjusted to exclude non-recurring income of $3,945
representing lease termination income received from predominantly
one tenant during the period. Gross property revenues already
exclude these amounts. The adjustments are as follows:
3 months ended 9 months ended
September 30, 2002 September 30, 2002
------------------------ --------------------------
EBIDTA FFO EBIDTA FFO
Gross amounts $ 9,745 $ 5,909 $ 35,625 $ 24,525
Adjustment for material non-recurring items - - (3,945) (3,945)
---------- ---------- ------------ ----------
As adjusted and used above $ 9,745 $ 5,909 $ 31,680 $ 20,580
========== ========== ============ ==========
(3) Represents preferred distributions on Preferred Operating
partnership Units.
(4) Includes the Company's pro-rata share of joint venture principal
amortization. $203 of the 2003 quarterly amortization is from the
self- liquidating amortization related to the Kroger/Safeway
portfolio. On the JV level, this consists of $29,528 of debt which
self-amortizes over the next six years.
(5) Capital expenditures include $831 and $1,293 for the quarter and 9
months ended September 30. 2003, respectively, related to the
complete redesign of the facade at the Bloomfield Towne Center.
Excluding the expenditures for this project, the FAD payout ratios
for the quarter and 9 months ended September 30, 2003 were 86% and
79%, respectively.
(6) Including the Company's pro-rata share of joint venture debt, the
Debt to Total Market Capitalization increases to 43% and 51% as of
June 30, 2003 and 2002, respectively.
Page 18
QUARTERLY SUPPLEMENTAL DISCLOSURE
September 30, 2003
Debt Analysis - Consolidated Debt
(amounts in thousands)
Variable
Principal Rate as
Balance at as of
September Interest September Maturity Prepayment
Property Lender Notes 30, 2003 Rate 30, 2003 Date Allowed
- ------------------------------------------------------------------------------------------------------------------------
FIXED-RATE DEBT
- --------------------------------
Merrillville Plaza SunAmerica Life Insurance Co. $13,500 6.46% 7/1/2007 Yes
Crescent Plaza Metropolitan Life Insurance Co. 8,551 8.13% 11/1/2010 Yes
East End Centre Metropolitan Life Insurance Co. 15,661 8.13% 11/1/2010 Yes
GHT Apartments Bank of America, N.A. 10,845 7.55% 1/1/2011 No
Colony Apartments Bank of America, N.A. 5,422 7.55% 1/1/2011 No
239 Greenwich Avenue RBS Greenwich Capital 16,000 5.19% 6/1/2013 No
------------ --------
TOTAL/WEIGHTED AVERAGE - FIXED-RATE DEBT 69,979 7.00%
------------ --------
VARIABLE-RATE DEBT
- --------------------------------
Soundview Marketplace Fleet National Bank 8,633 L + 175 2.87% 11/1/2003 Yes
Greenridge Plaza Metropolitan Life Insurance Co. 5,889 L + 200 3.11% 11/1/2003 Yes
Luzerne Street Plaza Metropolitan Life Insurance Co. 1,545 L + 200 3.11% 11/1/2003 Yes
Berlin Shopping Center Washington Mutual Bank, F.A. 1,788 L + 175 2.88% 4/1/2005 Yes
Bradford Towne Center Washington Mutual Bank, F.A. 7,310 L + 175 2.88% 4/1/2005 Yes
Ledgewood Mall Washington Mutual Bank, F.A. 30,096 L + 175 2.88% 4/1/2005 Yes
New Louden Center Washington Mutual Bank, F.A. 7,109 L + 175 2.88% 4/1/2005 Yes
Route 6 Plaza Washington Mutual Bank, F.A. 4,703 L + 175 2.88% 4/1/2005 Yes
Village Apartments Sun America Life Insurance Co. 9,257 L + 173 2.84% 10/1/2005 Yes
Abington Towne Center Fleet National Bank (1) L + 175 2.87% 1/1/2007 Yes
Branch Shopping Center Fleet National Bank (1) 12,053 L + 175 2.87% 1/1/2007 Yes
Methuen Shopping Center Fleet National Bank (1) L + 175 2.87% 1/1/2007 Yes
Walnut Hill Plaza Washington Mutual Bank, F.A. (2) 6,826 L + 185 2.98% 1/1/2007 Yes
Bloomfield Town Square Washington Mutual Bank, F.A. (2) 13,408 L + 185 2.98% 1/1/2007 Yes
Town Line Plaza Fleet National Bank (3) 4,884 L + 175 2.87% 3/15/2007 Yes
Gateway Shopping Center Fleet National Bank (4) 6,275 L + 175 2.87% 5/1/2007 Yes
Village Commons Shopping Center Fleet National Bank 9,022 L + 175 2.87% 6/1/2007 Yes
Elmwood Park Shopping Center Washington Mutual Bank, F.A. (5) - L + 170 - 11/22/2007 Yes
Marketplace of Absecon Fleet National Bank (6) - L + 150 - 3/1/2008 Yes
------------ -------- ---------
TOTAL/WEIGHTED AVERAGE - VARIABLE-RATE DEBT (7) 128,798 L + 174 2.90%
------------ -------- ---------
TOTAL/WEIGHTED AVERAGE - ALL DEBT $198,777 4.35%
============ =========
Notes:
------------------
(1) There is an additional $7,650 currently available under this
facility which the Company is required to fully draw down
prior to December 2003. An additional $3,000 (net of a $150
holdback) is available through December 2004 based upon
additional lease-up at the collateral properties.
(2) There is an additional $5,000 (less certain holdbacks
totalling $600) currently available under this facility which
the Company is required to fully draw down prior to December
21, 2003.
(3) There is an additional $2,000 available under this facility
which is also periodically used for standby letters of credit.
(4) There is an additional $3,000 available under this facility.
(5) This is a revolving facility for up to $20,000 which bears
interest at LIBOR plus 170 basis points (3.30% all-in rate
floor).
(6) This is a revolving facility for up to $7,400 which bears
interest at LIBOR plus 150 basis points (175 basis points if
the loan to collateral value is > 50%).
(7) The Company has hedged $86,791 of it's variable-rate debt with
five variable to fixed-rate swap agreements with Fleet Bank,
N.A. as follows:
Notional principal All-in Rate Maturity Date
-------------------- -------------- ---------------
$ 30,000 6.55% 4/1/2005
20,000 6.28% 10/1/2006
15,657 6.17% 1/1/2007
12,112 5.86% 1/1/2007
9,022 6.22% 6/1/2007
------------------- --------------
$ 86,791 6.29%
=================== ==============
Page 19
QUARTERLY SUPPLEMENTAL DISCLOSURE
September 30, 2003
Debt Analysis - Unconsolidated Debt (Joint Ventures)
Principal Variable
Acadia Balance Rate as
Realty at Acadia's of
Lender/ Trust September Prorata Interest September Maturity Prepayment
FIXED-RATE DEBT Joint Venture Partner Ownership 30, 2003 Share Rate 30, 2003 Date Allowed
- --------------- --------------------- --------------------------- -------------------------------------
Crossroads Shopping Center(1) Bank of New York/ 49.0% $33,120 $16,229 7.16% 10/1/2007 Yes
Heyman-Greenburgh
Associates LLC and
RMC Development
Company LLC
Brandywine Town Center UBS Warburg Real Estate
Investments, Inc./ 22.2% 30,000 6,667 4.69% 2/11/2008 No
Acadia Strategic
Opportunity Fund
Kroger Portfolio (2) Cortlandt Deposit
Corporation/ 22.2% 14,850 2,475 6.62% 2/1/2009 Yes
Acadia Strategic
Opportunity Fund
Safeway Portfolio (2) Cortlandt Deposit
Corporation/ 22.2% 14,678 2,446 6.51% 1/15/2009 Yes
Acadia Strategic
Opportunity Fund
Brandywine Town Center UBS Warburg Real Estate
Investments, Inc./ 22.2% 21,522 4,783 7.01% 7/11/2012 No
Acadia Strategic
Opportunity Fund
Market Square Shopping Center UBS Warburg Real Estate
Investments, Inc./ 22.2% 16,326 3,628 7.32% 6/11/2012 No
Acadia Strategic
Opportunity Fund
Amherst Marketplace The Ohio National Life
Insurance Company/
Acadia Strategic
Opportunity Fund 22.2% 4,954 1,101 8.20% 6/1/2022 Yes
Sheffield Crossing Canada Life Insurance
Company/
Acadia Strategic
Opportunity Fund 22.2% 7,353 1,634 8.00% 1/1/2023 Yes
--------- -------- --------
TOTAL/WEIGHTED AVERAGE - FIXED-RATE UNCONSOLIDATED DEBT 142,803 38,963 6.72%
--------- -------- --------
VARIABLE-RATE DEBT
- ------------------------------
Granville Center Bank One, NA/
Acadia Strategic
Opportunity Fund 22.2% 5,879 1,306 L + 200 3.12% 10/5/2007 Yes
--------- -------- ---------
TOTAL/WEIGHTED AVERAGE - ALL UNCONSOLIDATED DEBT $148,682 $40,269 6.61%
========= ======== =========
Summary - Consolidated and Unconsolidated Debt Notes
-----------------------------------------------------------------------------------------------------------------
% of
% of Wholly-Owned
Weighted Wholly- and
% of Outstanding Avg. Owned Unconsolidated
Total Balance Int. Rate Only Combined Basis
--------------------- --------- ----------- ---------------
Consolidated Debt
Fixed-Rate Debt (2) (3) 66% $156,770 6.61% 79% 82%
Variable-Rate Debt( 2) (3) 17% 42,007 2.90% 21% 18%
--------- ----------- --------- ----------- ---------------
Total Consolidated Debt 83% 198,777 5.82% 100% 100%
--------- ----------- --------- =========== ===============
Unconsolidated Debt (Joint Ventures)
Fixed-Rate Debt 16% 38,963 6.72%
Variable-Rate Debt 1% 1,306 3.12%
--------- ----------- ---------
Total Unconsolidated Debt 17% 40,269 6.61%
--------- ----------- ---------
Total Debt (4) 100% $239,046 5.96%
========= =========== =========
-----------------------------------------------------------------------------------------------------------------
Notes:
------------------
(1) Although this is variable debt, Acadia has effectively
fixed its pro-rata share of debt through two swap
transactions. $5,000 is fixed at 7.53% and the remaining
balance is fixed at 6.99%.
(2) AmCap, ASOF's joint venture partner on this investment, is
allocated 25% of the debt and equity. As such, ASOF's
pro-rata share of the above debt is 75% x 22.22%.
(3) Fixed-rate debt includes $86,791 of notional principal
fixed through swap transactions. Conversely, variable-rate
debt excludes this amount.
(4) The above balances do not include FAS 141 adjustments
totaling $5,552 as of September 30, 2003.
Page 20
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Future Debt Maturities
- -----------------------------------------
(in thousands) Weighted Average Interest Rate of Maturing Debt
-------------------------------------------------
Consolidated Debt
Scheduled
Year Amortization Maturities Total Total Debt Fixed-Rate Debt Variable-Rate Debt
- ---------------------------- ------------ ---------- ----------- ------------ --------------- --------------------
2003 $ 889 $ 16,028 $ 16,917 2.98% n/a 2.98%
2004 3,469 - 3,469 n/a n/a n/a
2005 2,659 57,752 60,411 2.87% n/a 2.87%
2006 2,323 - 2,323 n/a n/a n/a
2007 1,293 61,237 62,530 3.64% 6.46% 2.91%
Thereafter 4,017 49,110 53,127 7.12% 7.12% n/a
----------- --------- ----------
$ 14,650 $ 184,127 $ 198,777
=========== ========= ==========
Unconsolidated Debt (Joint Ventures) (1)
2003 $ 127 $ - $ 127 n/a n/a n/a
2004 1,325 - 1,325 n/a n/a n/a
2005 1,372 - 1,372 n/a n/a n/a
2006 1,418 - 1,418 n/a n/a n/a
2007 1,247 16,033 17,280 6.86% 7.16% 3.12%
Thereafter 4,637 14,110 18,747 5.98% 5.98% n/a
----------- --------- ----------
$ 10,126 $ 30,143 $ 40,269
=========== ========= ==========
Capitalized interest related to the Company's development projects is as
follows:
(in thousands)
1st Quarter 2003 $ 187
2nd Quarter 2003 76
3rd Quarter 2003 61
----------
Year-to-Date $ 324
==========
(1) The above amounts represent the Company's pro-rata share of joint
venture mortgage debt.
Page 21
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Unencumbered Properties
-----------------------
Center Location GLA
- --------------------------------------- ------------------ -----------
Blackman Plaza Wilkes-Barre, PA 121,341
Hobson West Plaza Naperville, IL 99,038
Mad River Station Dayton, OH 154,675
Mark Plaza Edwardsville, PA 214,036
Pacesetter Park Shopping Center Ramapo, New York 96,252
Pittston Plaza Pittston, PA 79,494
Plaza 422 Lebanon, PA 154,791
----------
Total GLA of Unencumbered Properties 919,627
==========
Total net operating income for the year
ended December 31, 2002 associated
with unencumbered properties $ 4,940
==========
Page 22
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Acadia Strategic Opportunity Fund - Overview
--------------------------------------------
Item Notes Description
- ---------------------------------------------------------------------------------------------------------------------
Date formed September 2001
Properties owned
Ohio 1 Amherst Marketplace
1 Granville Centre
1 Sheffield Crossing
Delaware 1 Brandywine Town Center
1 Market Square Shopping Center
Various 2 25 Kroger/Safeway locations
Partnership structure
Equity Contribution: 22.22% - Acadia
77.78% - Four institutional investors (current significant shareholders in
Acadia as well)
Cash flow distribution: 22.22% - Acadia
77.78% - Four institutional investors
Promote: 20% to Acadia once all partners (including Acadia) have received 9%
preferred return and return of equity
Remaining 80% is distributed to all the partners (including Acadia).
Fees to Acadia Asset management fee equal to 1.5% of total committed capital ($70 million
which excludes Acadia's $20 million)
Property management fee equal to 4% of gross property revenues
Market rate leasing fees
Construction/project management fees equal to the lesser of 7.5% of hard
costs or allocable costs of Acadia
Mortgage Debt 3 $116 million as of September 30, 2003
95% ($110 million) fixed-rate and 5% floating ($6 million) at a total
blended rate of 6.2% as of September 30, 2003
1 See details of these properties including occupancy, tenants,
expirations and demographics in Section IV of this supplement
2 See enclosed map in this section for these locations
3 See details of this debt in Section II of this supplement
Page 23
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
ASOF Properties - Detail
------------------------
---------------------------------------------------------------------------------------------------------
Annualized Base Rent
per Occupied Square
Gross Leasable Area Occupancy Annualized Base Rent Foot
---------------------------------------------------------------------------------------------------------
Anchors Shops Total Anchors Shops Total Anchors Shops Total Anchors Shops Total
---------------------------------------------------------------------------------------------------------
Midwest
- ---------------
Ohio
- ----
Amherst
Marketplace 76,737 3,200 79,937 100.00%100.00%100.00% $765,711 $33,396 $799,107 $9.98 $10.44 $10.00
Granville
Centre 90,047 41,222 131,269 100.00% 73.58% 91.70% 991,612 307,678 1,299,290 11.01 10.14 10.79
Sheffield
Crossing 59,159 53,475 112,634 100.00% 88.11% 94.36% 620,578 497,852 1,118,430 10.49 10.57 10.52
---------------------------------------------------------------------------------------------------------
Total - Midwest
Region 225,943 97,897 323,840 100.00% 82.38% 94.67% 2,377,901 838,926 3,216,827 10.52 10.40 10.49
---------------------------------------------------------------------------------------------------------
Mid-Atlantic
- ---------------
Delaware
- --------
Brandywine Town
Center (1) 614,289 - 614,289 99.33% - 99.33% 8,642,744 - 8,642,744 14.16 - 14.16
Market Square
Shopping
Center 31,375 56,385 87,760 100.00% 96.19% 97.55% 365,712 1,210,741 1,576,453 11.66 22.32 18.41
---------------------------------------------------------------------------------------------------------
Total - Mid-
Atlantic 645,664 56,385 702,049 99.36% 96.19% 99.11% 9,008,456 1,210,741 10,219,197 14.04 22.32 14.69
---------------------------------------------------------------------------------------------------------
Various
- ---------------
Kroger/Safeway
Portfolio (25
Properties)
(2) 1,018,100 - 1,018,100 100.00% - 100.00% 9,965,897 - 9,965,897 9.79 - 9.79
---------------------------------------------------------------------------------------------------------
Total - Joint
Venture
Properties 1,889,707 154,282 2,043,989 99.78% 87.43% 98.85%$21,352,254 $2,049,667 $23,401,921 $11.32 $15.20 $11.58
=========================================================================================================
General note - The above occupancy and rent amounts do not include
space which is currently leased, but for which rent
payment has not yet commenced. Tenants who comprise
greater than 10% of a center's GLA are considered
anchor tenants for the purposes of the above table.
(1) Does not include approximately 240,000 square feet of new space in
Phase II, which will be paid for by the JV on an "earnout basis"
only if, and when it is leased.
(2) ASOF has a 75% economic interest in this portfolio of 25
Kroger/Safeway triple-net leases.
Page 24
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Kroger/Safeway Portfolio
------------------------
[Graphic]
[Graphic]
[Graphic]
[Graphic]
Kroger locations Safeway locations
------------------------ --------------------
Cary, NC Atlanta, TX
Cincinnati, OH Batesville, AR
Conroe, TX Benton, AR
Great Bend, KS Carthage, TX
Hanrahan, LA Little Rock, AR
Indianapolis, IN Longview, WA
Irving, TX Mustang, OK
Pratt, KS Roswell, NM
Roanoke, VA Ruidoso, NM
Shreveport, LA San Ramon, CA
Wichita, KS (2 stores) Springerville, AZ
Tucson, AZ
Tulsa, OK
General note: As all of these leases are triple-net, Acadia has no
property management responsibilities for these locations.
Page 25
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
ACADIA STRATEGIC OPPORTUNITY FUND
Top 10 Tenants - Ranked by Annualized Base Rent
- ----------------------------------------------------------------------
Percentage of Total
Represented by Tenant
--------------------------------------
Number of Annualized
Stores in Total Base Total Annualized Base
Ranking Tenant JV Portfolio GLA Rent (1) Portfolio GLA( 2) Rent (2)
- ------- ----------------------- ------------ ---------- -------------- ----------------- --------------------
1 Safeway (3) 13 467,300 $3,743,629 22.9% 17.9%
2 Kroger (4) 12 550,800 3,730,794 26.9% 17.8%
3 Lowe's 1 140,000 1,925,000 6.8% 9.2%
4 Giant Eagle 2 125,396 1,251,154 6.1% 6.0%
5 Bed, Bath & Beyond 1 45,114 868,426 2.2% 4.2%
Transunion Settlement
6 (5) 1 39,714 858,930 1.9% 4.1%
7 Regal Cinema 1 65,641 821,825 3.2% 3.9%
8 Target 1 138,000 800,000 6.8% 3.8%
9 Dick's Sporting Goods 1 50,000 725,156 2.4% 3.5%
10 Big Bear 1 55,096 589,527 2.7% 2.8%
------------ ---------- -------------- ----------------- --------------------
Total 34 1,677,061 $15,314,441 82.0% 73.2%
============ ========== ============== ================= ====================
(1) Base rents do not include percentage rents (except where
noted), additional rents for property expense reimbursements,
and contractual rent escalations due after September 30, 2003.
(2) GLA does not include approximately 240,000 square feet of new
space in Phase II of the Brandywine Town Center, which will be
paid for by the JV on an "earnout basis" only if, and when it
is leased. Base rents for the Kroger/Safeway portfolio include
75% of the total rents. The remaining 25% is allocated to
AmCap, the joint venture partner in this portfolio.
(3) Safeway has sub-leased 7 of these locations to supermarket
tenants, 1 location to a non- supermarket tenant and ceased
operations at one other location. Safeway is obligated to pay
rent through the full term of all these leases which expire in
2009.
(4) Kroger has sub-leased 4 of these locations to supermarket
tenants, 2 locations to a non- supermarket tenant and ceased
operations at one other location. Kroger is obligated to pay
rent through the full term of all these leases which expire in
2009.
(5) Subsidiary of Transunion
Page 26
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Retail Properties - Summary Listing
- ----------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
Property Totals
-----------------------
Other Anchor
Grocery Anchor Current Lease
Year Current Lease and Annualized Annualized
Constructed(C) Occupancy and Option Base Base
Shopping Center Location Acquired(A) GLA % Option Expiraton Expiraton Rent Rent psf
- ------------------------------------------------------------------------------------------------------------------------
NEW YORK REGION
- ----------------------
New York
Clearview
Port King Kullen Cinema
Soundview Marketplace Washington 1998 (A) 184,098 92% 2007/2022 2010/2030 $2,835,492 $16.76
Village Commons Daffy's
Shopping Center Smithtown 1998 (A) 87,227 96% 2008/2028 1,969,730 23.42
Walgreens
2021/--
Branch Shopping Plaza Smithtown 1998 (A) 125,640 96% Waldbaum's (A&P) 2013/2028 2,134,067 17.75
Price Chopper Marshalls
New Loudon Center Latham 1982 (A) 253,003 69% 2015/2035 2004/2009 1,526,064 8.75
Pacesetter Park
Shopping Center Pomona 1999 (A) 96,252 84% Stop & Shop (Ahold) 2020/2040 877,329 10.84
New Jersey
Elmwood Park Shopping Pathmark Walgreen's
Center Elmwood Park 1998 (A) 149,038 100% 2017/2052 2022/2062 3,252,660 21.91
Eckerd Drug
Marketplace of AbseconAbsecon 1998 (A) 105,251 93% Acme 2015/2055 2020/2040 1,460,886 15.00
Kmart
Berlin Shopping CenterBerlin 1994 (A) 188,717 80% Acme 2005/2015 2004/2029 802,222 5.33
Wal-mart
Ledgewood Mall Ledgewood 1983 (A) 515,933 89% 2019/2049 4,236,424 9.25
Macy's
2005/2025
The Sports'
Authority
2007/2037
Circuit City
2020/2040
Marshall's
2007/2027
NEW ENGLAND REGION
- ----------------------
Connecticut
GU Markets Wal-mart (not
Town Line Plaza Rocky Hill 1998 (A) 206,178 100% 2017/2052 owned) 1,345,032 12.35
Restoration
Hardware
239 Greenwich Avenue Greenwich 1998 (A) 16,834 100% 2015/2025 1,254,282 74.51
Chico's
Fashion
2010/2020
Massachusetts
Methuen Shopping DeMoulas Market Wal-mart
Center Methuen 1998 (A) 130,238 100% 2005/2015 2011/2051 828,772 6.36
Home Depot
Crescent Plaza Brockton 1984 (A) 218,277 100% Shaw's 2012/2042 2021/2056 1,692,015 7.75
Rhode Island
Sears
Walnut Hill Plaza Woonsocket 1998 (A) 285,773 99% Shaw's 2013/2043 2003/2033 2,151,516 7.59
Vermont
The Gateway Shopping
Center Burlington 1999 (A) 100,563 84% Shaw's 2024/2053 1,544,422 18.27
MIDWEST REGION
- ----------------------
Illinois
Bobak's Market
and Restaurant
Hobson West Plaza Naperville 1998 (A) 99,038 99% 2007/2032 1,137,116 11.62
(specialty
grocery)
Indiana
TJ Maxx
Merrillville Plaza Merrillville 1998 (A) 235,591 100% 2004/2014 2,580,977 10.96
JC Penney
2008/2018
OfficeMax
2008/2028
Michigan
Bloomfield Costco (not TJ
Bloomfield Town Square Hills 1998 (A) 216,489 84% owned) Maxx2009/2014 1,721,770 9.43
Marshall's
2011/2026
Home Goods
2010/2025
Ohio
Babies "R" Us
Mad River Station Dayton 1999 (A) 154,675 81% 2005/2020 1,511,067 12.11
Office Depot
2005/2010
MID-ATLANTIC REGION
- ----------------------
Pennsylvania
TJ Maxx
Abington Towne Center Abington 1998 (A) 216,365 97% 2010/2020 780,861 14.64
Target (not
owned)
Kmart
Blackman Plaza Wilkes-Barre 1968 (C) 121,341 92% 2004/2049 (2) 261,504 2.34
P&C Foods (Penn
Traffic) Kmart
Bradford Towne Centre Towanda 1993 (C) 256,939 89% 2014/2024 2019/2069 1,419,821 6.19
Price Chopper
East End Center Wilkes-Barre 1986 (C) 308,283 54% 2008/2028 1,005,170 6.02
Giant Food
(Ahold)
Greenridge Plaza Scranton 1986 (C) 198,393 53% 2021/2051 645,159 6.14
Luzerne Street Price Chopper Eckerd Drug
Shopping Center Scranton 1983 (A) 57,988 94% 2004/2024 (3) 2004/2019 272,150 4.98
Redner's MarketsKmart
Mark Plaza Edwardsville 1968 (C) 214,036 91% 2018/2028 2004/2054 (2) 949,127 4.86
Redner's Market Eckerd Drugs
Pittston Plaza Pittston 1994 (C) 79,494 98% 2018/2028 2006/2016 599,728 7.69
Home Depot
Plaza 422 Lebanon 1972 (C) 154,791 87% 2021/2056 195,480 3.85
Weis Markets Kmart
Route 6 Mall Honesdale 1994 (C) 175,507 99% (not owned) 2020/2070 1,061,868 6.10
---------- -----------------------
5,151,952 $42,052,711 $10.05
========== =======================
JOINT VENTURE PROPERTIES
- ----------------------------------
(excludes jont venture owned Kroger/Safeway Portfolio)
NEW YORK REGION
- ----------------------
New York
Crossroads Shopping Waldbaum's Kmart
Center White Plains 1998 310,919 99% (A&P) 2012/2037 $5,474,567 $17.83
2007/2032 B. Dalton
(49% JV interest) 2012/2022
Pay Half
2018/--
Modell's
2009/2019
MID-ATLANTIC REGION
- ----------------------
Delaware
Brandywine Town
Center (1) Wilmington 2003 (A) 614,289 99% 8,642,744 14.16
(22% JV interest)
Trader Joe's
(specialty
Market Square grocery) TJ Maxx
Shopping Center Wilmington 2003 (A) 87,760 98% 2013/2028 2006/2016 1,576,453 18.41
(22% JV interest)
MIDWEST REGION
- ----------------------
Ohio
Giant Eagle
Amherst Marketplace Cleveland 2002 (A) 79,937 100% 2021/2041 799,107 10.00
(22% JV interest)
Big Bear (Penn California
Traffic) Fitness
Granville Centre Columbus 2002 (A) 131,269 92% 2020/2050 2017/2027 1,299,290 10.79
(22% JV interest)
Giant Eagle
Sheffield Crossing Cleveland 2002 (A) 112,634 94% 2022/2042 1,118,430 10.52
---------- -----------------------
(22% JV interest)
1,336,808 $18,910,591 $14.44
========== =======================
(1) Does not include 240,000 square feet of new space in Phase II of
the Brandywine Town Center, which will be paid for by the Company
on an "earnout basis" only if, and when it is leased.
(2) Kmart has notified the Company of its intention to exercise its
option to renew the lease for this space upon the expiration of
the current lease term.
(3) This tenant has ceased operations at this location, however
continues to pay rent pursuant to the lease.
Page 27
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Retail Properties by Region
---------------------------
(excludes jont venture owned Kroger/Safeway Portfolio)
-----------------------------------------------------------------------------
Gross Leasable Area Occupancy
-----------------------------------------------------------------------------
Wholly-Owned Properties
- ----------------------------
Anchors (1) Shops Total Anchors Shops Total
------------ ------------ ------------ ------------ ------------ ------------
New York Region 1,032,506 672,653 1,705,159 88.01% 85.45% 87.00%
New England 640,880 316,983 957,863 100.00% 94.17% 98.07%
Midwest 305,549 400,244 705,793 100.00% 83.78% 90.80%
Mid-Atlantic 1,281,243 501,894 1,783,137 83.65% 77.44% 81.90%
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
Total Wholly-Owned
Properties 3,260,178 1,891,774 5,151,952 89.78% 84.43% 87.81%
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
Joint Venture Properties
- ----------------------------
Midwest (2) 225,943 97,897 323,840 100.00% 82.38% 94.67%
Mid-Atlantic( 2,3) 645,664 56,385 702,049 99.36% 96.19% 99.11%
New York Region (4) 191,363 119,556 310,919 100.00% 96.76% 98.75%
------------ ------------ ------------ ------------ ------------ ------------
Total Joint Venture
Properties 1,062,970 273,838 1,336,808 99.61% 91.50% 97.95%
============ ============ ============ ============ ============ ============
-----------------------------------------------------------------------------
Annualized Base Rent
Annualized Base Rent per Occupied Square Foot
-----------------------------------------------------------------------------
Wholly-Owned Properties
- ----------------------------
Anchors Shops Total Anchors Shops Totals
------------ ------------ ------------ ------------ ------------ ------------
New York Region $9,263,352 $9,831,522 $19,094,874 $10.19 $17.11 $12.87
New England 5,891,556 2,924,483 8,816,039 10.84 9.80 10.47
Midwest 2,369,451 4,581,479 6,950,930 7.75 13.66 10.85
Mid-Atlantic 4,226,210 2,964,658 7,190,868 5.09 7.63 5.90
------------ ------------ ------------ ------------ ------------ ------------
Total Wholly-Owned
Properties $21,750,569 $20,302,142 $42,052,711 $8.40 $12.71 $10.05
------------ ------------ ------------ ------------ ------------ ------------
Joint Venture Properties
- ----------------------------
Midwest (2) $2,377,901 $838,926 $3,216,827 $10.52 $10.40 $10.49
Mid-Atlantic( 2,3) 9,008,456 1,210,741 10,219,197 14.04 22.32 14.69
New York Region (4) 1,939,927 3,534,640 5,474,567 10.14 30.55 17.83
------------ ------------ ------------ ------------ ------------ ------------
Total Joint Venture
Properties $13,326,284 $5,584,307 $18,910,591 $12.59 $22.29 $14.44
============ ============ ============ ============ ============ ============
General note - The above occupancy and rent amounts do not include
space which is currently leased, but for which rent
payment has not yet commenced. Tenants who comprise
greater than 10% of a center's GLA are considered
anchor tenants for the purposes of the above table.
(1) Anchor GLA includes a total of 254,916 square feet which is not
owned by the Company. This square footage has been excluded for
calculating annualized base rent per square foot.
(2) The Company has a 22% interest in Acadia Strategic Opportunity
Fund which owns these properties.
(3) Does not include 240,000 square feet of new space in Phase II of
the Brandywine Town Center, which will be paid for by the Company
on an "earnout basis" only if, and when it is leased.
(4) The Company has a 49% interest in two partnerships which,
together, own the Crossroads Shopping Center.
Page 28
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Retail Properties by State - Summary
---------------------------------------------
(excludes jont venture owned Kroger/Safeway Portfolio)
------------ ------------ -------------
Wholly-Owned Properties
- ------------------------------- Percent
Ownership of base Number of
% rent (1) properties
------------ ------------ -------------
NEW YORK REGION
New Jersey 100% 20.4% 4
New York 100% 19.6% 5
NEW ENGLAND REGION
Connecticut 100% 5.4% 2
Massachusetts 100% 5.3% 2
Rhode Island 100% 4.5% 1
Vermont 100% 3.2% 1
MIDWEST REGION
Illinois 100% 2.4% 1
Indiana 100% 5.4% 1
Michigan 100% 3.6% 1
Ohio 100% 3.2% 1
MID-ATLANTIC REGION
Pennsylvania 100% 15.1% 10
------------ -------------
Total - Wholly-Owned Properties 88.1% 29
------------ -------------
Joint Venture Properties (3)
- -------------------------------
Ohio (4) 22% 1.5% 3
Delaware (4,5) 22% 4.8% 2
New York (6) 49% 5.6% 1
------------ -------------
Total Joint Venture Properties 11.9% 6
------------ -------------
100.0% 35
============ =============
-----------------------------------------------------------------------------
Gross Leasable Area Occupancy
-----------------------------------------------------------------------------
Wholly-Owned Properties
- -------------------------------
Anchors (2) Shops Total Anchors Shops Total
-----------------------------------------------------------------------------
NEW YORK REGION
New Jersey 590,959 367,980 958,939 92.00% 84.50% 89.12%
New York 441,547 304,673 746,220 82.67% 86.60% 84.27%
NEW ENGLAND REGION
Connecticut 178,799 44,213 223,012 100.00% 100.00% 100.00%
Massachusetts 276,989 71,526 348,515 100.00% 100.00% 100.00%
Rhode Island 113,092 172,681 285,773 100.00% 98.60% 99.15%
Vermont 72,000 28,563 100,563 100.00% 43.81% 84.04%
MIDWEST REGION
Illinois 42,037 57,001 99,038 100.00% 97.88% 98.78%
Indiana 101,357 134,234 235,591 100.00% 100.00% 100.00%
Michigan 103,970 112,519 216,489 100.00% 69.95% 84.38%
Ohio 58,185 96,490 154,675 100.00% 69.02% 80.67%
MID-ATLANTIC REGION
Pennsylvania 1,281,243 501,894 1,783,137 83.65% 77.44% 81.90%
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
Total - Wholly-Owned Properties 3,260,178 1,891,774 5,151,952 89.78% 84.43% 87.81%
------------ ------------ ------------ ------------ ------------ ------------
Joint Venture Properties (3)
- -------------------------------
Ohio (4) 225,943 97,897 323,840 100.00% 82.38% 94.67%
Delaware (4,5) 645,664 56,385 702,049 99.36% 96.19% 99.11%
New York (6) 191,363 119,556 310,919 100.00% 96.76% 98.75%
------------ ------------ ------------ ------------ ------------ ------------
Total Joint Venture Properties 1,062,970 273,838 1,336,808 99.61% 91.50% 97.95%
============ ============ ============ ============ ============ ============
------------------------------------------------------------------------------
Annualized Base Rent
Annualized Base Rent per Occupied Square Foot
------------------------------------------------------------------------------
Wholly-Owned Properties
- -------------------------------
Anchors Shops Total Anchors Shops Totals
-----------------------------------------------------------------------------
NEW YORK REGION
New Jersey $5,380,740 $4,371,452 $9,752,192 $9.90 $14.06 $11.41
New York 3,882,612 5,460,070 9,342,682 10.64 20.69 14.86
NEW ENGLAND REGION
Connecticut 1,984,282 615,032 2,599,314 24.35 13.91 20.68
Massachusetts 1,855,550 665,237 2,520,787 6.70 9.30 7.23
Rhode Island 755,724 1,395,792 2,151,516 6.68 8.20 7.59
Vermont 1,296,000 248,422 1,544,422 18.00 19.85 18.27
MIDWEST REGION
Illinois 170,000 967,116 1,137,116 4.04 17.33 11.62
Indiana 900,035 1,680,942 2,580,977 8.88 12.52 10.96
Michigan 767,849 953,921 1,721,770 7.39 12.12 9.43
Ohio 531,567 979,500 1,511,067 9.14 14.71 12.11
MID-ATLANTIC REGION
Pennsylvania 4,226,210 2,964,658 7,190,868 5.09 7.63 5.90
------------ ------------ ------------ ------------ ------------ ------------
Total - Wholly-Owned Properties 21,750,569 20,302,142 42,052,711 8.40 12.71 10.05
------------ ------------ ------------ ------------ ------------ ------------
Joint Venture Properties (3)
- -------------------------------
Ohio (4) $2,377,901 $838,926 $3,216,827 $10.52 $10.40 $10.49
Delaware (4,5) 9,008,456 1,210,741 10,219,197 14.04 22.32 14.69
New York (6) 1,939,927 3,534,640 5,474,567 10.14 30.55 17.83
Total Joint $13,326,284 $5,584,307 $18,910,591 $12.59 $22.29 $14.44
Venture Properties ============ ============ ============ ============ ============ ============
General note - The above occupancy and rent amounts do not include space which
is currently leased, but for which rent payment has not yet
commenced. Tenants who comprise greater than 10% of a center's
GLA are considered anchor tenants for the purposes of the above
table.
(1) The Company's pro-rata share of base rent from joint venture properties has
been included for the purpose of calculating percentage of base rent by
state.
(2) Anchor GLA includes a total of 254,916 square feet which is not owned by
the Company. This square footage has been excluded for calculating
annualized base rent per square foot.
(3) Does not include approximately 1 million square feet relating to a
portfolio of 25 supermarket triple-net leases acquired by ASOF in January
of 2003.
(4) The Company has a 22% interest in Acadia Strategic Opportunity Fund which
owns these properties.
(5) Does not include 240,000 square feet of new space in Phase II of the
Brandywine Town Center, which will be paid for by the Company on an
"earnout basis" only if, and when it is leased.
(6) The Company has a 49% interest in two partnerships which, together, own the
Crossroads Shopping Center.
Page 29
QUARTERLY SUPPLEMENTAL
DISCLOSURE
SEPTEMBER 30, 2003
Retail Properties - Detail
- -----------------------------
Gross Leasable Area Occupancy
-------------------------------------- --------------------------------------
Anchors Shops Total Anchors Shops Total
------------ ------------ ------------ ------------ ------------ ------------
WHOLLY-OWNED PROPERTIES:
New York Region
- -----------------------------
New York
- -----------------------------
Soundview Marketplace 73,500 110,598 184,098 100.00% 86.47% 91.87%
Village Commons Shopping
Center 25,192 62,035 87,227 100.00% 94.97% 96.42%
Branch Plaza 63,000 62,640 125,640 100.00% 91.40% 95.71%
New Loudon Center 227,803 25,200 253,003 66.40% 91.90% 68.94%
Pacesetter Park Shopping
Center 52,052 44,200 96,252 100.00% 65.33% 84.08%
------------ ------------ ------------ ------------ ------------ ------------
Total - New York 441,547 304,673 746,220 82.67% 86.60% 84.27%
------------ ------------ ------------ ------------ ------------ ------------
New Jersey
- -----------------------------
Elmwood Park Shopping Center 62,610 86,428 149,038 100.00% 99.30% 99.59%
Marketplace of Absecon 58,031 47,220 105,251 100.00% 83.33% 92.52%
Berlin Shopping Center 127,850 60,867 188,717 100.00% 37.42% 79.82%
Ledgewood Mall 342,468 173,465 515,933 86.20% 93.96% 88.81%
------------ ------------ ------------ ------------ ------------ ------------
Total - New Jersey 590,959 367,980 958,939 92.00% 84.50% 89.12%
------------ ------------ ------------ ------------ ------------ ------------
Total - New York Region 1,032,506 672,653 1,705,159 88.01% 85.45% 87.00%
------------ ------------ ------------ ------------ ------------ ------------
New England
- -----------------------------
Connecticut
- -----------------------------
Town Line Plaza (1) 161,965 44,213 206,178 100.00% 100.00% 100.00%
239 Greenwich Avenue (2) 16,834 - 16,834 100.00% - 100.00%
------------ ------------ ------------ ------------ ------------ ------------
Total - Connecticut 178,799 44,213 223,012 100.00% 100.00% 100.00%
------------ ------------ ------------ ------------ ------------ ------------
Massachusetts
- -----------------------------
Methuen Shopping Center 120,004 10,234 130,238 100.00% 100.00% 100.00%
Crescent Plaza 156,985 61,292 218,277 100.00% 100.00% 100.00%
------------ ------------ ------------ ------------ ------------ ------------
Total - Massachusetts 276,989 71,526 348,515 100.00% 100.00% 100.00%
------------ ------------ ------------ ------------ ------------ ------------
Rhode Island
- -----------------------------
Walnut Hill Plaza 113,092 172,681 285,773 100.00% 98.60% 99.15%
------------ ------------ ------------ ------------ ------------ ------------
Vermont
- -----------------------------
The Gateway Shopping
Center (3) 72,000 28,563 100,563 100.00% 43.81% 84.04%
------------ ------------ ------------ ------------ ------------ ------------
Total - New England Region 640,880 316,983 957,863 100.00% 94.17% 98.07%
------------ ------------ ------------ ------------ ------------ ------------
Annualized Base Rent
Annualized Base Rent per Occupied Square Foot
-------------------------------------- ---------------------------------------
Anchors Shops Total Anchors Shops Total
------------ ------------ ------------ ------------ ------------ -----------
WHOLLY-OWNED PROPERTIES:
New York Region
- -----------------------------
New York
- -----------------------------
Soundview Marketplace $1,158,850 $1,676,642 $2,835,492 $15.77 $17.53 $16.76
Village Commons Shopping
Center 428,213 1,541,517 1,969,730 17.00 26.17 23.42
Branch Plaza 837,240 1,296,827 2,134,067 13.29 22.65 17.75
New Loudon Center 1,125,174 400,890 1,526,064 7.44 17.31 8.75
Pacesetter Park Shopping
Center 333,135 544,194 877,329 6.40 18.85 10.84
------------ ------------ ------------ ------------ ------------ -----------
Total - New York 3,882,612 5,460,070 9,342,682 10.64 20.69 14.86
------------ ------------ ------------ ------------ ------------ -----------
New Jersey
- -----------------------------
Elmwood Park Shopping Center 1,390,460 1,862,200 3,252,660 22.21 21.70 21.91
Marketplace of Absecon 927,574 533,312 1,460,886 15.98 13.55 15.00
Berlin Shopping Center 619,400 182,822 802,222 4.84 8.03 5.33
Ledgewood Mall 2,443,306 1,793,118 4,236,424 8.28 11.00 9.25
------------ ------------ ------------ ------------ ------------ -----------
Total - New Jersey 5,380,740 4,371,452 9,752,192 9.90 14.06 11.41
------------ ------------ ------------ ------------ ------------ -----------
Total - New York Region 9,263,352 9,831,522 19,094,874 10.19 17.11 12.87
------------ ------------ ------------ ------------ ------------ -----------
New England
- -----------------------------
Connecticut
- -----------------------------
Town Line Plaza (1) 730,000 615,032 1,345,032 11.29 13.91 12.35
239 Greenwich Avenue (2) 1,254,282 - 1,254,282 74.51 - 74.51
------------ ------------ ------------ ------------ ------------ -----------
Total - Connecticut 1,984,282 615,032 2,599,314 24.35 13.91 20.68
------------ ------------ ------------ ------------ ------------ -----------
Massachusetts
- -----------------------------
Methuen Shopping Center 736,464 92,308 828,772 6.14 9.02 6.36
Crescent Plaza 1,119,086 572,929 1,692,015 7.13 9.35 7.75
------------ ------------ ------------ ------------ ------------ -----------
Total - Massachusetts 1,855,550 665,237 2,520,787 6.70 9.30 7.23
------------ ------------ ------------ ------------ ------------ -----------
Rhode Island
- -----------------------------
Walnut Hill Plaza 755,724 1,395,792 2,151,516 6.68 8.20 7.59
------------ ------------ ------------ ------------ ------------ -----------
Vermont
- -----------------------------
The Gateway Shopping
Center (3) 1,296,000 248,422 1,544,422 18.00 19.85 18.27
------------ ------------ ------------ ------------ ------------ -----------
Total - New England Region 5,891,556 2,924,483 8,816,039 10.84 9.80 10.47
------------ ------------ ------------ ------------ ------------ -----------
General note - The above occupancy and rent amounts do not include space which
is currently leased, but for which rent payment has not yet
commenced. Tenants who comprise greater than 10% of a center's
GLA are considered anchor tenants for the purposes of the above
table.
(1) Anchor GLA includes a 97,300 square foot Wal-Mart store which is not owned
by the Company. This square footage has been excluded for calculating
annualized base rent per square foot.
(2) 239 Greenwich Avenue contains 16,834 square feet of retail GLA and 21
residential units encompassing 14,434 square feet. Residential activities
are not included above.
(3) The newly built 72,000 square foot Shaw's supermarket opened during the 2nd
quarter 2003 at this redevelopment project. The balance of the newly
constructed small shop space is in its initial lease-up phase.
Gross Leasable Area Occupancy
-------------------------------------- --------------------------------------
Anchors Shops Total Anchors Shops Total
------------ ------------ ------------ ------------ ------------ ------------
WHOLLY-OWNED PROPERTIES
(continued):
Midwest
- -----------------------------
Illinois
- -----------------------------
Hobson West Plaza 42,037 57,001 99,038 100.00% 97.88% 98.78%
Indiana
- -----------------------------
Merrillville Plaza 101,357 134,234 235,591 100.00% 100.00% 100.00%
Michigan
- -----------------------------
Bloomfield Towne Square 103,970 112,519 216,489 100.00% 69.95% 84.38%
Ohio
- -----------------------------
Mad River Station (1) 58,185 96,490 154,675 100.00% 69.02% 80.67%
------------ ------------ ------------ ------------ ------------------------
Total - Midwest Region 305,549 400,244 705,793 100.00% 83.78% 90.80%
------------ ------------ ------------ ------------ ------------------------
Mid-Atlantic
- -----------------------------
Pennsylvania
- -----------------------------
Abington Towne Center (2) 184,616 31,749 216,365 100.00% 82.93% 97.50%
Blackman Plaza 104,956 16,385 121,341 100.00% 42.72% 92.27%
Bradford Towne Centre 146,499 110,440 256,939 100.00% 74.90% 89.21%
East End Center 176,200 132,083 308,283 28.38% 88.65% 54.20%
Greenridge Plaza 145,420 52,973 198,393 42.70% 81.07% 52.95%
Luzerne Street Shopping
Center( 3) 54,618 3,370 57,988 100.00% - 94.19%
Mark Plaza 157,595 56,441 214,036 100.00% 67.02% 91.30%
Pittston Plaza 67,568 11,926 79,494 100.00% 87.39% 98.11%
Plaza 422 124,113 30,678 154,791 100.00% 32.60% 86.64%
Route 6 Plaza 119,658 55,849 175,507 100.00% 97.27% 99.13%
------------ ------------ ------------ ------------ ------------------------
Total - Pennsylvania 1,281,243 501,894 1,783,137 83.65% 77.44% 81.90%
------------ ------------ ------------ ------------ ------------------------
Total - Mid-Atlantic Region 1,281,243 501,894 1,783,137 83.65% 77.44% 81.90%
------------ ------------ ------------ ------------ ------------------------
TOTAL WHOLLY-OWNED PROPERTIES 3,260,178 1,891,774 5,151,952 89.78% 84.43% 87.81%
------------ ------------ ------------ ------------ ------------------------
General note - The above occupancy and rent amounts do not include space which
is currently leased, but for which rent payment has not yet
commenced. Tenants who comprise greater than 10% of a center's
GLA are considered anchor tenants for the purposes of the above
table.
(1) The GLA for this property includes 27,702 square feet of office space.
(2) Anchor GLA includes a 157,616 square foot Target store which is not owned
by the Company. This square footage has been excluded for calculating
annualized base rent per square foot.
(3) The Price Chopper supermarket which leases 40,618 square feet is not
operating in the space, but remains obligated under the lease and continues
to pay rent.
Annualized Base Rent
Annualized Base Rent per Occupied Square Foot
-------------------------------------- ---------------------------------------
Anchors Shops Total Anchors Shops Total
------------ ------------ ------------ ------------ ------------ -----------
WHOLLY-OWNED PROPERTIES (continued):
Midwest
- -----------------------------
Illinois
- -----------------------------
Hobson West Plaza $170,000 $967,116 $1,137,116 $4.04 $17.33 $11.62
Indiana
- -----------------------------
Merrillville Plaza 900,035 1,680,942 2,580,977 8.88 12.52 10.96
Michigan
- -----------------------------
Bloomfield Towne Square 767,849 953,921 1,721,770 7.39 12.12 9.43
Ohio
- -----------------------------
Mad River Station (1) 531,567 979,500 1,511,067 9.14 14.71 12.11
------------ ------------ ------------ ------------ ------------------------
Total - Midwest Region 2,369,451 4,581,479 6,950,930 7.75 13.66 10.85
------------ ------------ ------------ ------------ ------------------------
Mid-Atlantic
- -----------------------------
Pennsylvania
- -----------------------------
Abington Towne Center (2) 256,500 524,361 780,861 9.50 19.92 14.64
Blackman Plaza 204,664 56,840 261,504 1.95 8.12 2.34
Bradford Towne Centre 887,469 532,352 1,419,821 6.06 6.44 6.19
East End Center 357,500 647,670 1,005,170 7.15 5.53 6.02
Greenridge Plaza 279,405 365,754 645,159 4.50 8.52 6.14
Luzerne Street Shopping
Center( 3) 272,150 - 272,150 4.98 - 4.98
Mark Plaza 652,095 297,032 949,127 4.14 7.85 4.86
Pittston Plaza 496,446 103,282 599,728 7.35 9.91 7.69
Plaza 422 132,030 63,450 195,480 3.24 6.34 3.85
Route 6 Plaza 687,951 373,917 1,061,868 5.75 6.88 6.10
----------------------------------------------------------------------------
Total - Pennsylvania 4,226,210 2,964,658 7,190,868 5.09 7.63 5.90
----------------------------------------------------------------------------
Total - Mid-Atlantic Region 4,226,210 2,964,658 7,190,868 5.09 7.63 5.90
----------------------------------------------------------------------------
TOTAL WHOLLY-OWNED PROPERTIES$21,750,569 $20,302,142 $42,052,711 $8.40 $12.71 $10.05
----------------------------------------------------------------------------
General note - The above occupancy and rent amounts do not include space which
is currently leased, but for which rent payment has not yet
commenced. Tenants who comprise greater than 10% of a center's
GLA are considered anchor tenants for the purposes of the above
table.
(1) The GLA for this property includes 27,702 square feet of office space.
(2) Anchor GLA includes a 157,616 square foot Target store which is not owned
by the Company. This square footage has been excluded for calculating
annualized base rent per square foot.
(3) The Price Chopper supermarket which leases 40,618 square feet is not
operating in the space, but remains obligated under the lease and continues
to pay rent.
Gross Leasable Area Occupancy
-------------------------------------- --------------------------------------
Anchors Shops Total Anchors Shops Total
------------ ------------ ------------ ------------ ------------ ------------
JOINT VENTURE PROPERTIES: (1)
Midwest
- -----------------------------
Ohio
- -----------------------------
Amherst Marketplace (2) 76,737 3,200 79,937 100.00% 100.00% 100.00%
Granville Centre (2) 90,047 41,222 131,269 100.00% 73.58% 91.70%
Sheffield Crossing (2) 59,159 53,475 112,634 100.00% 88.11% 94.36%
------------ ------------ ------------ ------------ ------------------------
Total - Midwest Region 225,943 97,897 323,840 100.00% 82.38% 94.67%
------------ ------------ ------------ ------------ ------------------------
Mid-Atlantic
- -----------------------------
Delaware
- -----------------------------
Brandywine Town Center (2,3) 614,289 - 614,289 99.33% - 99.33%
Market Square Shopping Center
(2) 31,375 56,385 87,760 100.00% 96.19% 97.55%
------------ ------------ ------------ ------------ ------------------------
Total - Mid-Atlantic 645,664 56,385 702,049 99.36% 96.19% 99.11%
------------ ------------ ------------ ------------ ------------------------
New York Region
- -----------------------------
New York
- -----------------------------
Crossroads Shopping
Center(4) 191,363 119,556 310,919 100.00% 96.76% 98.75%
------------ ------------ ------------ ------------ ------------------------
Total - Joint Venture
Properties 1,062,970 273,838 1,336,808 99.61% 91.50% 97.95%
============ ============ ============ ============ ========================
General note - The above occupancy and rent amounts do not include space which
is currently leased, but for which rent payment has not yet
commenced. Tenants who comprise greater than 10% of a center's
GLA are considered anchor tenants for the purposes of the above
table.
(1) In January of 2003, the Acadia Strategic Opportunity Fund ("ASOF") acquired
approximately 2 million additional square feet in two separate
transactions. Approximately 1 million square feet relates to a portfolio of
25 supermarket triple-net leases which is not reflected above. See section
III of this supplement for additonal detail on this portfolio.
(2) The Company has a 22% interest in ASOF which owns the property.
(3) Does not include approximately 240,000 square feet of new space in Phase
II, which will be paid for by the JV on an "earnout basis" only if, and
when it is leased.
(4) The Company has a 49% interest in two partnerships which, together, own the
Crossroads Shopping Center.
Annualized Base Rent
Annualized Base Rent per Occupied Square Foot
-------------------------------------- ---------------------------------------
Anchors Shops Total Anchors Shops Total
------------ ------------ ------------ ------------ ------------ -----------
JOINT VENTURE PROPERTIES: (1)
Midwest
- -----------------------------
Ohio
- -----------------------------
Amherst Marketplace (2) $765,711 $33,396 $799,107 $9.98 $10.44 $10.00
Granville Centre (2) 991,612 307,678 1,299,290 11.01 10.14 10.79
Sheffield Crossing (2) 620,578 497,852 1,118,430 10.49 10.57 10.52
------------ ------------ ------------ ------------ ------------ ------------
Total - Midwest Region 2,377,901 838,926 3,216,827 10.52 10.40 10.49
------------ ------------ ------------ ------------ ------------ ------------
Mid-Atlantic
- -----------------------------
Delaware
- -----------------------------
Brandywine Town Center (2,3) 8,642,744 - 8,642,744 14.16 - 14.16
Market Square Shopping Center
(2) 365,712 1,210,741 1,576,453 11.66 22.32 18.41
------------ ------------ ------------ ------------ ------------ ------------
Total - Mid-Atlantic 9,008,456 1,210,741 10,219,197 14.04 22.32 14.69
------------ ------------ ------------ ------------ ------------ ------------
New York Region
- -----------------------------
New York
- -----------------------------
Crossroads Shopping Center
(4) 1,939,927 3,534,640 5,474,567 10.14 30.55 17.83
------------ ------------ ------------ ------------ ------------ ------------
Total - Joint Venture
Properties $13,326,284 $5,584,307 $18,910,591 $12.59 $22.29 $14.44
============ ============ ============ ============ ============ ============
General note - The above occupancy and rent amounts do not include space which
is currently leased, but for which rent payment has not yet
commenced. Tenants who comprise greater than 10% of a center's
GLA are considered anchor tenants for the purposes of the above
table.
(1) In January of 2003, the Acadia Strategic Opportunity Fund ("ASOF") acquired
approximately 2 million additional square feet in two separate
transactions. Approximately 1 million square feet relates to a portfolio of
25 supermarket triple-net leases which is not reflected above. See section
III of this supplement for additonal detail on this portfolio.
(2) The Company has a 22% interest in ASOF which owns the property.
(3) Does not include approximately 240,000 square feet of new space in Phase
II, which will be paid for by the JV on an "earnout basis" only if, and
when it is leased.
(4) The Company has a 49% interest in two partnerships which, together, own the
Crossroads Shopping Center.
Page 30
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
----- Previous Quarters -----
9 months ended 3 months ended 3 months ended 3 months ended
September 30, September 30, June 30, March 31,
Leasing Production Notes: 2003 2003 2003 2003 (4)
- ---------------------------------------- ---------------- ---------------- -------------- ---------------
New leases (1)
Number of new leases commencing 27 5 7 15
GLA 97,062 25,921 33,745 37,396
New base rent $14.20 $17.22 $8.82 $16.97
Previous base rent (and percentage rent) $11.44 $12.30 $7.07 $14.79
Percentage growth in base rent 24.1% 40.0% 24.8% 14.7%
Average cost per square foot $5.57 $10.90 $4.20 $3.12
Renewal leases
Number of renewal leases commencing 34 16 11 7
GLA 151,226 93,244 40,456 17,526
Renewal percentage (2) 73% 93% 76% 32%
New base rent $15.56 $14.51 $17.01 $17.83
Expiring base rent (and percentage rent) $15.08 $14.38 $15.76 $17.20
Percentage growth in base rent (5) 3.2% 0.9% 7.9% 3.7%
Average cost per square foot $0.00 $0.00 $0.00 $0.00
Total new and renewal Leases
Number of renewal leases commencing 61 21 18 22
GLA 248,288 119,165 74,201 54,922
New base rent $15.03 $15.10 $13.29 $17.24
Expiring base rent (and percentage rent) $13.66 $13.93 $11.81 $15.56
Percentage growth in base rent (3) 10.1% 8.4% 12.5% 10.8%
Average cost per square foot $2.18 $2.37 $1.91 $2.12
(1) Does not include leased square footage and costs related to first
generation space and the Company's major redevelopment projects.
(2) 1st Quarter 2003 renenwal percentage was adversely impacted by the closing
of a small business which operated at three locations in the Company's
portfolio totaling 25,000 square feet. Adjusting for this impact, the
renewal percentage 1st Quarter was 78% and for the six months 77%.
(3) Rent is presented on a cash basis. Rents have not been averaged over terms.
Previous/expiring rent is that as of time of expiration and includes any
percentage rent paid as well. New rent is that which is initially paid at
commencement.
(4) Restated from 1st Quarter 2003 Supplement
(5) Included in the 3rd quarter activity is the renewal of a 19,000 square foot
tenant which included a 27% reduction in rent. Excluding the effect from
this one tenant, the total percentage growth in base rent for renewal
leases would have been 9%.
Page 31
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Top Tenants - Ranked by Annualized Base Rent
- ----------------------------------------------------------------------------
(Combined basis - Includes pro-rata share of GLA and rent for JV properties)
Acadia Strategic Crossroads
Wholly-Owned Opportunity Fund Shopping Center
100% 22% 49%
---------------------------- -------------------- ------------------
Number of
stores in Annualized Annualized Annualized
Retail combined Total Base Total Base Total Base
Ranking Tenant portfolio GLA Rent (1) GLA Rent (1) GLA Rent (1)
- -------------------------------------------------- --------------- ------------ -------- ----------- ------- ----------
1 Shaw's 3 174,617 $2,310,685 - $- - $-
2 Kmart 6 520,221 1,870,484 49,355 277,463
3 T.J. Maxx 9 238,061 1,802,571 6,972 81,269 - -
4 Wal-Mart 2 210,114 1,515,409 - - - -
5 Price Chopper( 4) 3 168,068 1,295,727 - - - -
6 A&P/ Waldbaum's 2 63,000 837,240 - - 18,722 246,960
7 Eckerd Drug (5) 8 89,620 1,054,296 - - - -
8 Pathmark 1 47,773 955,460 - - - -
9 Restoration Hardware 1 12,293 929,600 - - - -
10 Acme (Albertson's) 2 76,864 918,664 - - - -
11 Redner's Supermarket 2 111,739 863,432 - - - -
12 Safeway (6) 13 - - 103,834 831,909 - -
13 Kroger( 7) 12 - - 122,388 829,065 - -
14 GU Markets( 8) 1 64,665 730,000 - - - -
15 KB Toys 6 41,025 573,700 4,475 85,027 - -
16 Ahold (Giant, Stop & Shop) 2 114,142 612,540 - - - -
17 Macy's 1 73,349 610,745 - - - -
18 Home Depot (9) 2 190,090 602,126 - - - -
19 Clearview Cinema 1 25,400 596,250 - - - -
20 JC Penney 2 72,580 591,747 - - - -
21 Walgreen's 2 23,904 589,088 - - - -
---------------- --------------- ------------ -------- ----------- ------- ----------
Total 81 2,317,525 $19,259,764 237,669 $1,827,270 68,077 $524,423
================ =============== ============ ======== =========== ======= ==========
Percentage of Total
Combined Represented by Retail Tenant
------------------------- -----------------------------
Average
Annualized Total Average Gross
Retail Total Base Portfolio Annualized Base Sales Occupancy
Ranking Tenant GLA Rent (1) GLA( 2) Rent (2) (per sq. ft.) Cost (3)
- -------------------------------------------- ------------- ------------ --------------- --------------- -------------
1 Shaw's 174,617 $2,310,685 3.0% 4.7% $474 * 2.6%
2 Kmart 569,576 2,147,947 9.9% 4.3% 195 3.3%
3 T.J. Maxx 245,033 1,883,840 4.3% 3.8% 225 * 5.1%
4 Wal-Mart 210,114 1,515,409 3.6% 3.1% 329 * 3.2%
5 Price Chopper( 4) 168,068 1,295,727 2.9% 2.6% 504 2.0%
6 A&P/ Waldbaum's 81,722 1,084,200 1.4% 2.2% 362 * 5.6%
7 Eckerd Drug (5) 89,620 1,054,296 1.6% 2.1% 429 * 4.1%
8 Pathmark 47,773 955,460 0.8% 1.9% - -
9 Restoration Hardware 12,293 929,600 0.2% 1.9% 242 33.0%
10 Acme (Albertson's) 76,864 918,664 1.3% 1.9% 370 4.4%
11 Redner's Supermarket 111,739 863,432 1.9% 1.7% 253 3.9%
12 Safeway (6) 103,834 831,909 1.8% 1.7% - -
13 Kroger( 7) 122,388 829,065 2.1% 1.7% - -
14 GU Markets( 8) 64,665 730,000 1.1% 1.5% - -
15 KB Toys 45,500 658,727 0.8% 1.3% 206 9.1%
16 Ahold (Giant, Stop & Shop) 114,142 612,540 2.0% 1.2% 333 3.3%
17 Macy's 73,349 610,745 1.3% 1.2% 208 6.0%
18 Home Depot (9) 190,090 602,126 3.3% 1.2% - -
19 Clearview Cinema 25,400 596,250 0.4% 1.2% - -
20 JC Penney 72,580 591,747 1.3% 1.2% 160 6.6%
21 Walgreen's 23,904 589,088 0.4% 1.2% 352 8.1%
---------- ------------- ------------ ---------------
Total 2,623,271 $21,611,457 45.6% 43.8%
========== ============= ============ ===============
(1) Base rents do not include percentage rents (except where noted), additional
rents for property expense reimbursements, and contractual rent escalations
due after September 30, 2003.
(2) Represents total GLA and annualized base rent for the Company's retail
properties including its pro-rata share of joint venture properties.
(3) Occupancy cost = Gross rents (base rent, percentage rent and expense
reimbursements) divided by sales. * indicates not all locations are
required to report sales. Amount is left blank if the tenant is not
required to report sales at any of the locations.
(4) The tenant is currently not operating the store at the Luzerne Street
Shopping Center. They are obligated, and continue, to pay annual minimum
rent of $177,650 until the lease expires in April 30, 2004.
(5) Subsidiary of JC Penney. The store at the Berlin Shopping Center has ceased
operating but continues to pay annual rent of $29,129 pursuant to the lease
which expires November 30, 2004. The Route 6 Plaza location has been sublet
to Advance Auto and expires 2011.
(6) Safeway has sub-leased 7 of these locations to supermarket tenants, 1
location to a non-supermarket tenant and ceased operations at one other
location. Safeway is obligated to pay rent through the full term of all
these leases which expire in 2009.
(7) Kroger has sub-leased 4 of these locations to supermarket tenants, 2
locations to a non-supermarket tenant and ceased operations at one other
location. Kroger is obligated to pay rent through the full term of all
these leases which expire in 2009.
(8) This lease is guaranteed by A&P.
(9) Home Depot has acquired the former Ames lease ( 83,330 square feet) at the
Plaza 422 and is in the process of expanding the store to 102,000 square
feet. When complete (estimated 1st quarter 2004), they will pay base rent
of approximatly $408,000. However, they are not obligated to pay rent
during the construction period and, as such, the rent is not included in
the above amounts.
Page 32
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Anchor Detail
-----------------------------------
(excludes jont venture owned Kroger/Safeway Portfolio)
- ---------------------------------------------------------------------------------------------------------------------
Annual Annual
Property/Tenant Name Square Lease Base Base
(Type of Center) Footage Expiration Rent Rent PSF Options/Required Notice
- ------------------------------------------ ---------- ----------- ------------ ------- ------------------------------
THE COMPANY CONSIDERS THOSE TENANTS WHO COMPRISE GREATER THAN 10% OF A CENTER'S GLA AS ANCHOR TENANTS
(The below detail does not include space which is currently leased, but for which rent payment has not yet commenced)
Retail Anchor Properties- Wholly Owned
- ------------------------------------------
New York Region
- ------------------------------------------
New York
-----------------------------------------
Soundview Marketplace, Port Washington
King Kullen 48,100 9/26/2007 $562,600 $11.70 (7) 5 Year (12 Months)
Clearview Cinema 25,400 5/31/2010 596,250 23.47 (4) 5 Year (12 Months)
---------- ------------ -------
Property total 73,500 1,158,850 15.77
---------- ------------ -------
Smithtown Shopping Center, Smithtown
Daffy's 16,125 1/7/2008 274,125 17.00 (4) 5 Year (12 Months)
Walgreen's 9,067 12/31/2021 154,088 16.99 -
---------- ------------ -------
Property total 25,192 428,213 17.00
---------- ------------ -------
The Branch Shopping Center, Smithtown
Waldbaum's (A&P) 63,000 11/30/2013 837,240 13.29 (1) 10 Year & (1) 5 Year
---------- ------------ -------
Property Total: 63,000 837,240 13.29
---------- ------------ -------
New Loudon Center, Latham
Club Pro 47,805 4/30/2006 260,537 5.45 (1) 5 Year (12 Months)
Marshall's 26,015 1/31/2004 104,060 4.00 (1) 5 Year (12 Months)
Price Chopper 77,450 5/31/2015 760,577 9.82 (4) 5 Year (12 Months)
---------- ------------ -------
Property total 151,270 1,125,174 7.44
---------- ------------ -------
Pacesetter Park Shopping Center, Pomona
Stop & Shop (Ahold subsidiary) 52,052 8/31/2020 333,135 6.40 (2) 10 Year
---------- ------------ -------
Property total 52,052 333,135 6.40
---------- ------------ -------
New Jersey
-----------------------------------------
Elmwood Park Shopping Center, Elmwood Park
Walgreen's 14,837 5/31/2022 435,000 29.32 (8) 5 Year (12 Months)
Pathmark 47,773 11/30/2017 955,460 20.00 (7) 5 Year (12 Months)
---------- ------------ -------
Property total 62,610 1,390,460 22.21
---------- ------------ -------
Marketplace of Absecon, Absecon
Eckerd Drug 13,207 8/30/2020 329,310 24.93 (4) 5 Year (6 Months)
Acme Markets 44,824 4/30/2015 598,264 13.35 (8) 5 Year (12 Months)
---------- ------------ -------
Property total 58,031 927,574 15.98
---------- ------------ -------
Berlin Shopping Center, Berlin
Acme Markets 32,040 4/30/2005 320,400 10.00 (2) 5 Year (6 Months)
Kmart 95,810 11/30/2004 299,000 3.12 (4) 5 Year (6 Months)
---------- ------------ -------
Property total 127,850 619,400 4.84
---------- ------------ -------
Ledgewood Mall, Ledgewood (Enclosed Mall)
Circuit City 33,294 1/31/2020 449,469 13.50 (4) 5 Year (6 Months)
Marshall's 27,228 1/31/2007 326,736 12.00 (4) 5 Year (6 Months)
The Sports Authority 52,205 5/31/2007 225,000 4.31 (6) 5 Year (15 Months)
Macy's Department Store (1) 61,900 1/31/2005 553,500 8.94 (4) 5 Year (6 Months)
Wal*Mart 120,570 3/31/2019 888,601 7.37 (6) 5 Year (6 Months)
---------- ------------ -------
Property total 295,197 2,443,306 8.28
---------- ------------ -------
Total: New York Region 908,702 9,263,352 10.19
---------- ------------ -------
(1) The tenant has additional expansion space bringing the total space to
74,815 s.f. with total rents of $618,075.
Page 33
- ---------------------------------------------------------------------------------------------------------------------
Annual Annual
Property/Tenant Name Square Lease Base Base
(Type of Center) Footage Expiration Rent Rent PSF Options/Required Notice
- ------------------------------------------ ---------- ----------- ------------ ------- ------------------------------
THE COMPANY CONSIDERS THOSE TENANTS WHO COMPRISE GREATER THAN 10% OF A CENTER'S GLA AS ANCHOR TENANTS
(The below detail does not include space which is currently leased, but for which rent payment has not yet commenced)
Retail Anchor Properties- Wholly Owned (continued)
- -----------------------------------------------------
New England
- ------------------------------------------
Connecticut
-----------------------------------------
Town Line Plaza, Rocky Hill
Wal*Mart(1) 97,300 - $- $- REA Agreement
GU Markets 64,665 3/8/2017 730,000 11.29 (7) 5 Year (6 Months)
---------- ------------ -------
Property total 161,965 730,000 11.29
---------- ------------ -------
239 Greenwich Ave., Greenwich
Chico's Fashion 4,541 1/31/2010 324,682 71.50 (2) 5 Years
Restoration Hardware 12,293 4/30/2015 929,600 75.62 (2) 5 Years (6 Months)
---------- ------------ -------
Property total 16,834 1,254,282 74.51
---------- ------------ -------
Massachusetts
-----------------------------------------
Methuen Shopping Center, Methuen
Demoulas Super Markets 30,460 1/31/2005 109,656 3.60 (2) 5 Year
Wal*Mart 89,544 10/23/2011 626,808 7.00 (8) 5 Year (6 Months)
---------- ------------ -------
Property total 120,004 736,464 6.14
---------- ------------ -------
Crescent Plaza, Brockton
Home Depot 106,760 10/31/2021 602,126 5.64 (7) 5 Year (1 Year)
Shaws Supermarkets 50,225 12/31/2012 516,960 10.29 (6) 5 Year (6 Months)
---------- ------------ -------
Property total 156,985 1,119,086 7.13
---------- ------------ -------
Rhode Island
-----------------------------------------
Walnut Hill Plaza, Woonsocket
Sears 60,700 8/31/2008 258,000 4.25 (5) 5 Year (12 Months)
Shaws Supermarkets 52,392 12/31/2013 497,724 9.50 (6) 5 Year (9 Months)
---------- ------------ -------
Property total 113,092 755,724 6.68
---------- ------------ -------
Vermont
-----------------------------------------
Gateway Shopping Center
Shaws Supermarkets (1) 10 Yr., (3) 5 Yr. & (1) 4
72,000 3/31/2024 1,296,000 18.00 Yr.
---------- ------------ -------
Property total 72,000 1,296,000 18.00
---------- ------------ -------
Total : New England 640,880 5,891,556 10.84
---------- ------------ -------
Midwest
- -------
Illinois
-----------------------------------------
Hobson West Plaza, Naperville
Bobak's Market and Restaurant 42,037 11/30/2007 170,000 4.04 (5) 5 Year (6 Months)
---------- ------------ -------
Property total 42,037 170,000 4.04
---------- ------------ -------
Indiana
-----------------------------------------
Merrillville Plaza, Merrillville
JC Penney 50,000 1/31/2008 495,000 9.90 (2) 5 Year (12 Months)
OfficeMax 26,157 7/31/2008 222,335 8.50 (4) 5 Year (6 Months)
TJ Maxx 25,200 1/31/2004 182,700 7.25 (2) 5 Year (6 Months)
---------- ------------ -------
Property total 101,357 900,035 8.88
---------- ------------ -------
Michigan
-----------------------------------------
Bloomfield Town Square, Bloomfield Hills
Home goods 39,646 5/31/2010 307,257 7.75 (3) 5 Year
Marshall's 28,324 9/30/2011 226,592 8.00 (3) 5 Year (6 Months)
TJ Maxx 36,000 1/31/2009 234,000 6.50 (1) 5 Year (6 Months)
---------- ------------ -------
Property total 103,970 767,849 7.39
---------- ------------ -------
Ohio
------
Mad River Station, Dayton
Babies 'R' Us 33,147 2/28/2005 243,630 7.35 (3) 5 Year
Office Depot 25,038 8/31/2005 287,937 11.50 (1) 5 Year (6 Months)
---------- ------------ -------
Property total 58,185 531,567 9.14
---------- ------------ -------
Total: Midwest 305,549 2,369,451 7.75
---------- ------------ -------
(1) This space is contiguous to the Company's property and is not owned by the
Company.
Page 34
- ---------------------------------------------------------------------------------------------------------------------
Annual Annual
Property/Tenant Name Square Lease Base Base
(Type of Center) Footage Expiration Rent Rent PSF Options/Required Notice
- ------------------------------------------ ---------- ----------- ------------ ------- ------------------------------
THE COMPANY CONSIDERS THOSE TENANTS WHO COMPRISE GREATER THAN 10% OF A CENTER'S GLA AS ANCHOR TENANTS
(The below detail does not include space which is currently leased, but for which rent payment has not yet commenced)
Retail Anchor Properties- Wholly Owned (continued)
- -----------------------------------------------------
Mid-Atlantic
- ------------------------------------------
Pennsylvania
-----------------------------------------
Abington Town Center, Abington
TJ Maxx 27,000 11/30/2010 $256,500 $9.50 (2) 5 Year (6 Months)
Target( 1) 157,616 - - - Condominium Agreement
---------- ------------ -------
Property total 184,616 256,500 9.50
---------- ------------ -------
Blackman Plaza, Wilkes-Barre
Kmart( 4) 104,956 10/31/2004 204,664 1.95 (9) 5 Year (12 Months)
---------- ------------ -------
Property total 104,956 204,664 1.95
---------- ------------ -------
Bradford Towne Centre, Towanda
Kmart 94,841 3/31/2019 474,205 5.00 (10) 5 Year (6 Months)
P & C Foods (Penn Traffic) 51,658 9/30/2014 413,264 8.00 (2) 5 Year (6 Months)
---------- ------------ -------
Property total 146,499 887,469 6.06
---------- ------------ -------
East End Center, Wilkes-Barre
Price Chopper 50,000 4/30/2008 357,500 7.15 (4) 5 Year (6 Months)
---------- ------------ -------
Property total 50,000 357,500 7.15
----------
Greenridge Plaza, Scranton
Giant Food Stores (Ahold) 62,090 4/30/2021 279,405 4.50 (6) 5 Year (Auto)
---------- ------------ -------
Property total 62,090 279,405 4.50
---------- ------------ -------
Luzerne Street Shopping Center, Scranton
Eckerd Drugs 14,000 4/30/2004 94,500 6.75 (3) 5 Year (6 Months)
Price Chopper( 2) 40,618 4/30/2004 177,650 4.37 (4) 5 Year (12 Months)
---------- ------------ -------
Property total 54,618 272,150 4.98
---------- ------------ -------
Mark Plaza, Edwardsville
Kmart( 4) 104,956 10/31/2004 204,664 1.95 (10) 5 Year (12 Months)
Redner's Market 52,639 5/31/2018 447,432 8.50 (2) 5 Year (6 Months)
---------- ------------ -------
Property total 157,595 652,096 4.14
---------- ------------ -------
Pittston Plaza, Pittston
Eckerd Drugs 8,468 6/30/2006 80,446 9.50 (2) 5 Year (6 Months)
Redner's Market 59,100 12/31/2018 416,000 7.04 (2) 5 Year
---------- ------------ -------
Property total 67,568 496,446 7.35
---------- ------------ -------
Plaza 422, Lebanon
Giant Food Stores (2) 40,783 12/31/2003 132,030 3.24 (5) 5 Year
Home Depot (3) 83,330 - -
---------- ------------ -------
Property total 124,113 132,030 3.24
---------- ------------ -------
Route 6 Mall, Honesdale
Kmart 119,658 4/30/2020 687,950 5.75 (10) 5 Year (Automatic)
---------- ------------ -------
Property total 119,658 687,950 5.75
---------- ------------ -------
Total : Mid-Atlantic 1,071,713 4,226,210 5.09
---------- ------------ -------
Total: Retail Anchor Properties - Wholly
Owned Properties 2,926,844 $21,750,569 $8.40
========== ============ =======
(1) Target owns the portion of the main building (157,616 square feet) that
their store is located in.
(2) This tenant has ceased operations at this location, however continues to
pay rent pursuant to the lease.
(3) Home Depot has acquired the former Ames lease ( 83,330 square feet) at the
Plaza 422 and is in the process of expanding the store to 102,000 square
feet. When complete (estimated 1st quarter 2004), they will pay base rent
of approximatly $408,000. However, they are not obligated to pay rent
during the construction period and, as such, the rent is not included in
the above amounts.
(4) Kmart has notified the Company of its intention to exercise its option to
renew the lease for this space upon the expiration of the current lease
term.
Page 35
- ---------------------------------------------------------------------------------------------------------------------
Annual Annual
Property/Tenant Name Square Lease Base Base
(Type of Center) Footage Expiration Rent Rent PSF Options/Required Notice
- ------------------------------------------ ---------- ----------- ------------ ------- ------------------------------
THE COMPANY CONSIDERS THOSE TENANTS WHO COMPRISE GREATER THAN 10% OF A CENTER'S GLA AS ANCHOR TENANTS
(The below detail does not include space which is currently leased, but for which rent payment has not yet commenced)
Joint Venture Properties
- ------------------------------------------
New York Region
- ------------------------------------------
New York
-----------------------------------------
Crossroads Shopping Center, White Plains
Kmart 100,725 1/31/2012 $566,250 $5.62 (5) 5 Year (9 Months)
Waldbaum's (A&P) 38,208 12/31/2007 504,000 13.19 (5) 5 Year (9 Months)
B. Dalton 12,430 5/28/2012 345,927 27.83 (2) 5 Year (18 Months)
Pay Half 15,000 1/31/2018 330,000 22.00 -
Modell's 25,000 2/28/2009 193,750 7.75 (2) 5 Year (12 Months)
---------- ------------ -------
Property total 191,363 1,939,927 10.14
---------- ------------ -------
Total : New York Region 191,363 1,939,927 10.14
---------- ------------ -------
Mid-Atlantic Region
- ------------------------------------------
Delaware
-----------------------------------------
Brandywine Town Center
Annie Sez 13,324 1/31/2007 266,500 20.00 (3) 5 Year (9 Months)
Kay-Bee Toys 20,138 7/31/2012 382,622 19.00 (2) 5 Year (9 Months)
Michaels 24,876 2/28/2011 547,272 22.00 (3) 5 Year (9 Months)
Old Navy 24,631 4/30/2011 541,872 22.00 (1) 5 Year (6 Months)
Petsmart 23,963 6/30/2017 455,297 19.00 (2) 5 Year (Automatic)
Thomasville Furniture 18,893 11/30/2011 449,842 23.81 (2) 5 Year (9 Months)
Bed, Bath & Beyond 50,977 1/31/2014 868,426 17.04 (3) 5 Year (6 Months)
Dick's Sporting Goods 50,000 5/31/2013 725,156 14.50 (3) 5 Year (6 Months)
Lowe's Home Centers 140,000 8/31/2018 1,925,000 13.75 (6) 5 Year (Automatic)
Regal Cinemas 65,641 6/1/2017 821,825 12.52 (4) 5 Year (4 Months)
Transunion Settlement 39,714 3/31/2013 858,930 21.63 (1) 5 Year (9 Months)
Target 138,000 1/31/2018 800,000 5.80 (5) 10 Year (12 Months)
---------- ------------ -------
Property total 610,157 8,642,742 14.16
---------- ------------ -------
Market Square Shopping Center
TJ Maxx 31,375 1/31/2006 365,714 11.66 (2) 5 Year (9 Months)
---------- ------------ -------
Total : Mid-Atlantic Region 641,532 9,008,456 14.04
---------- ------------ -------
Midwest Region
- ------------------------------------------
Ohio
------
Amherst Marketplace
Giant Eagle 66,237 9/3/2021 630,576 9.52 (4) 5 Year (6 Months)
CVS( 1) 10,500 3/31/2012 135,135 12.87 (3) 5 Year (6 Months)
---------- ------------ -------
Property total 76,737 765,711 9.98
---------- ------------ -------
Granville Centre
Big Bear Supermarket (Penn Traffic) 55,096 1/28/2020 589,527 10.70 (6) 5 Year
California Fitness 34,951 1/31/2017 402,085 11.50 (2) 5 Year
---------- ------------ -------
Property total 90,047 991,612 11.01
---------- ------------ -------
Sheffield Crossing
Giant Eagle 59,159 5/31/2022 620,578 10.49 (4) 5 Year (6 Months)
---------- ------------ -------
Property total 59,159 620,578 10.49
---------- ------------ -------
Total: Midwest 225,943 2,377,901 10.52
---------- ------------ -------
Total: Joint Venture Properties 1,058,838 $13,326,284 $12.59
========== ============ =======
(1) This tenant has ceased operations at this location, however continues to
pay rent pursuant to the lease.
Page 36
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Anchor Lease Expirations - Next 3 Years
--------------------------------------------------------
Gross Leased Area Annualized Base Rent
------------------ ------------------------------------------
Percent
of Percent Average
Square all of per
Center Anchor footage anchors Amount all anchors Sq. Ft.
------------------------ --------------------- --------- ---------------------- ------------ ---------------
2003
Plaza 422 Giant Food Stores (1) 40,783 1.53% $132,030 0.61% $3.24
--------- -------- ------------- ------------ ---------------
2004
New Louden Center Marshalls 26,015 0.97% 104,060 0.48% 4.00
Luzerne Street Shopping Eckerd Drug
Center 14,000 0.52% 94,500 0.43% 6.75
Luzerne Street Shopping Price Chopper (1)
Center 40,618 1.52% 177,650 0.82% 4.37
Blackman Plaza K-Mart 104,956 3.93% 204,664 0.94% 1.95
Mark Plaza K-Mart 104,956 3.93% 204,664 0.94% 1.95
Berlin Shopping Center K-Mart 95,810 3.59% 299,000 1.37% 3.12
--------- -------- ------------- ------------ ---------------
Total 2004 386,355 14.46% 1,084,538 4.99% 2.81
--------- -------- ------------- ------------ ---------------
2005
Methuen Shopping Center Demoulas Supermarket 30,460 1.14% 109,656 0.50% 3.60
Ledgewood Mall Macy's (2) 61,900 2.32% 553,500 2.54% 8.94
Mad River Shopping Babies 'R' Us
Center 33,147 1.24% 243,630 1.12% 7.35
Berlin Shopping Center Acme Markets 32,040 1.20% 320,400 1.47% 10.00
Mad River Shopping Office Depot
Center 25,038 0.94% 287,937 1.32% 11.50
--------- -------- ------------- ------------ ---------------
Total 2005 182,585 6.83% 1,515,123 6.97% 8.30
--------- -------- ------------- ------------ ---------------
Total - Next 3 Years $609,723 22.82% $2,731,691 12.57% $4.48
========= ======== ============= ============ ===============
(1) This tenant has ceased operations at this location, however continues to
pay rent pursuant to the lease.
(2) The tenant has additional expansion space bringing the total space to
74,815 s.f. with total rents of $618,075.
Page 37
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Lease Expirations
--------------------------------------
-------------------------------------------------------------------------
Gross Leased Area Annualized Base Rent
------------------------ ----------------------------------
Number
of Percent Percent Average
Leases Square of of per
Expiring Footage Total Amount Total Sq. Ft.
-------------------------------------------------------------------------
Wholly-Owned Propeties
Anchor Tenant Expirations
2003 1 40,783 1.53% 132,030 0.61% 3.24
2004 6 386,355 14.46% 1,084,538 4.99% 2.81
2005 5 182,585 6.83% 1,515,123 6.97% 8.30
2006 2 139,603 5.22% 340,983 1.57% 2.44
2007 4 169,570 6.35% 1,284,336 5.90% 7.57
2008 5 202,982 7.60% 1,606,960 7.39% 7.92
2009 2 61,200 2.29% 416,700 1.92% 6.81
2010 4 96,587 3.61% 1,484,688 6.83% 15.37
2011 2 117,868 4.41% 853,400 3.92% 7.24
2012 1 50,225 1.88% 516,960 2.38% 10.29
2013 2 115,392 4.32% 1,334,964 6.14% 11.57
2014 1 51,658 1.93% 413,264 1.90% 8.00
2015 3 134,567 5.04% 2,288,441 10.49% 17.01
2017 2 112,438 4.21% 1,685,460 7.75% 14.99
2018 2 111,739 4.18% 863,432 3.97% 7.73
2019 2 215,411 8.06% 1,362,806 6.27% 6.33
2020 4 218,211 8.17% 1,799,865 8.28% 8.25
2021 3 177,917 6.66% 1,035,619 4.76% 5.82
2022 1 14,837 0.56% 435,000 2.00% 29.32
2024 1 72,000 2.69% 1,296,000 5.96% 18.00
-------------------------------- ----------------------------------
Total Occupied 53 2,671,928 100.00% $21,750,569 100.00% $8.40
Anchor GLA Owned by Tenants 254,916
Total Vacant 333,334
-----------
Total Square Feet 3,260,178
===========
Wholly-Owned Propeties
Shop Tenant Expirations
Month to Month 18 43,702 2.73% $359,994 1.77% $8.24
2003 7 9,914 0.62% 148,313 0.73% 14.96
2004 54 182,646 11.43% 2,114,577 10.42% 11.58
2005 49 251,729 15.76% 2,881,990 14.20% 11.45
2006 49 180,734 11.32% 2,225,962 10.96% 12.32
2007 50 204,214 12.79% 2,791,838 13.75% 13.67
2008 49 220,289 13.79% 2,931,982 14.44% 13.31
2009 30 168,548 10.55% 2,293,989 11.30% 13.61
2010 15 115,134 7.21% 933,581 4.60% 8.11
2011 16 77,149 4.83% 1,260,438 6.21% 16.34
2012 7 22,549 1.41% 471,259 2.32% 20.90
2013 13 58,422 3.66% 1,062,648 5.23% 18.19
2014 2 26,472 1.66% 167,024 0.82% 6.31
2015 2 15,616 0.98% 290,532 1.43% 18.60
2020 2 17,945 1.12% 326,120 1.61% 18.17
2022 1 2,205 0.14% 41,895 0.21% 19.00
-------------------------------- ----------------------------------
Total Occupied 364 1,597,268 100.00% $20,302,142 100.00% $12.71
Total Vacant 294,506
-----------
Total Square Feet 1,891,774
===========
Wholly-Owned Propeties
Total Tenant Expirations
Month to Month 18 43,702 1.02% $359,994 0.86% $8.24
2003 8 50,697 1.19% 280,343 0.67% 5.53
2004 60 569,001 13.33% 3,199,115 7.61% 5.62
2005 54 434,314 10.17% 4,397,113 10.46% 10.12
2006 51 320,337 7.50% 2,566,945 6.10% 8.01
2007 54 373,784 8.76% 4,076,174 9.69% 10.91
2008 54 423,271 9.91% 4,538,942 10.79% 10.72
2009 32 229,748 5.38% 2,710,689 6.45% 11.80
2010 19 211,721 4.96% 2,418,269 5.75% 11.42
2011 18 195,017 4.57% 2,113,838 5.03% 10.84
2012 8 72,774 1.70% 988,219 2.35% 13.58
2013 15 173,814 4.07% 2,397,612 5.70% 13.79
2014 3 78,130 1.83% 580,288 1.38% 7.43
2015 5 150,183 3.52% 2,578,973 6.13% 17.17
2017 2 112,438 2.63% 1,685,460 4.01% 14.99
2018 2 111,739 2.62% 863,432 2.05% 7.73
2019 2 215,411 5.05% 1,362,806 3.24% 6.33
2020 6 236,156 5.53% 2,125,985 5.06% 9.00
2021 3 177,917 4.17% 1,035,619 2.46% 5.82
2022 2 17,042 0.40% 476,895 1.13% 27.98
2024 1 72,000 1.69% 1,296,000 3.08% 18.00
-------------------------------- ----------------------------------
Total Occupied 417 4,269,196 100.00% $42,052,711 100.00% $10.05
Anchor GLA Owned by Tenants 254,916
Total Vacant 627,840
-----------
Total Square Feet 5,151,952
===========
Joint Venture Properties (excludes jont venture owned Kroger/Safeway Portfolio)
Anchor Tenant Expirations
2006 1 31,375 2.96% 365,712 2.74% 11.66
2007 2 51,532 4.87% 770,500 5.78% 14.95
2009 1 25,000 2.36% 193,750 1.45% 7.75
2011 3 68,400 6.46% 1,538,986 11.55% 22.50
2012 4 143,793 13.58% 1,429,935 10.73% 9.94
2013 2 89,714 8.47% 1,584,086 11.89% 17.66
2014 1 50,977 4.81% 868,426 6.52% 17.04
2017 3 124,555 11.76% 1,679,208 12.60% 13.48
2018 3 293,000 27.68% 3,055,000 22.93% 10.43
2020 1 55,096 5.20% 589,527 4.42% 10.70
2021 1 66,237 6.26% 630,576 4.73% 9.52
2022 1 59,159 5.59% 620,578 4.66% 10.49
-------------------------------- ----------------------------------
Total Occupied 23 1,058,838 100.00% $13,326,284 100.00% $12.59
Total Vacant 4,132
-----------
Total Square Feet 1,062,970
===========
Joint Venture Properties
Shop Tenant Expirations
Month to Month 3 17,415 6.95% $474,018 8.49% $27.22
2003 3 10,873 4.34% 75,359 1.35% 6.93
2004 11 55,238 22.05% 1,467,579 26.27% 26.57
2005 7 20,555 8.20% 508,425 9.10% 24.73
2006 8 20,444 8.16% 393,155 7.04% 19.23
2007 10 26,369 10.52% 687,286 12.31% 26.06
2008 10 32,140 12.83% 727,038 13.02% 22.62
2009 3 5,362 2.14% 172,102 3.08% 32.10
2011 2 4,265 1.70% 97,787 1.75% 22.93
2012 3 15,750 6.29% 322,073 5.77% 20.45
2013 4 25,595 10.21% 380,082 6.81% 14.85
2018 1 6,957 2.78% 50,004 0.90% 7.19
2019 1 3,141 1.25% 42,000 0.75% 13.37
2022 1 6,462 2.58% 187,399 3.36% 29.00
-------------------------------- ----------------------------------
Total Occupied 67 250,566 100.00% $5,584,307 100.00% $22.29
Total Vacant 23,272
-----------
Total Square Feet 273,838
===========
Joint Venture Properties
Total Tenant Expirations
Month to Month 3 17,415 1.33% $474,018 2.51% $27.22
2003 3 10,873 0.83% 75,359 0.40% 6.93
2004 11 55,238 4.22% 1,467,579 7.76% 26.57
2005 7 20,555 1.57% 508,425 2.69% 24.73
2006 9 51,819 3.96% 758,867 4.01% 14.64
2007 12 77,901 5.95% 1,457,786 7.71% 18.71
2008 10 32,140 2.45% 727,038 3.84% 22.62
2009 4 30,362 2.32% 365,852 1.93% 12.05
2011 5 72,665 5.55% 1,636,773 8.66% 22.52
2012 7 159,543 12.18% 1,752,008 9.26% 10.98
2013 6 115,309 8.81% 1,964,168 10.39% 17.03
2014 1 50,977 3.89% 868,426 4.59% 17.04
2017 3 124,555 9.51% 1,679,208 8.88% 13.48
2018 4 299,957 22.91% 3,105,004 16.43% 10.35
2019 1 3,141 0.24% 42,000 0.22% 13.37
2020 1 55,096 4.21% 589,527 3.12% 10.70
2021 1 66,237 5.06% 630,576 3.33% 9.52
2022 2 65,621 5.01% 807,977 4.27% 12.31
-------------------------------- ----------------------------------
Total Occupied 90 1,309,404 100.00% $18,910,591 100.00% $14.44
Total Vacant 27,404
-----------
Total Square Feet 1,336,808
===========
Page 38
Page 39
QUARTERLY SUPPLEMENTAL DISCLOSURE
SEPTEMBER 30, 2003
Residential (Multi-family) Properties
- ---------------------------------------------
% Occupied % Occupied
Property Location Square Feet Units September 30, 2003 June 30, 2003
- --------------------------------------------- ---------------- ------------ --------- ------------------ --------------
Mid-Atlantic
North Carolina
- ---------------------------------------------
Village Apartments Winston Salem 578,606 600 89% 86%
Mid-West
Missouri
- ---------------------------------------------
Gate House, Holiday House, Tiger Village, Columbia 628,891 874 97% 92%
------------ --------- ------------------ --------------
Colony Apartments (1)
Totals 1,207,497 1,474 94% 90%
============ ========= ================== ==============
(1) As this property has tenants associated with the University of Missouri,
occupancy trends are correlated to semester sessions
Exhibit 99.2
Acadia Realty Trust Announces Strong Third Quarter 2003 Operating
Results; FFO up 10%; Reaffirms Earnings Guidance for 2003
NEW YORK--(BUSINESS WIRE)--Nov. 3, 2003--Acadia Realty Trust
(NYSE: AKR - "Acadia" or the "Company"), a real estate investment
trust ("REIT") and owner and operator of shopping centers anchored by
grocery and value-oriented retail, today reported operating results
for the quarter and nine months ended September 30, 2003.
Third Quarter 2003 Highlights
Financial Information
-- 2003 Diluted funds from operations ("FFO") of $0.23 per share
in 2003, up 10% over 2002 FFO
-- 2003 FFO up 15% over 2002 FFO from continuing operations
-- 2003 earnings per diluted share of $0.09, up from $0.08 in
2002
-- 62% FFO payout ratio
-- Debt 82% fixed-rate
-- 39% debt to total market capitalization
-- 2.9 to 1 fixed-charge coverage
Portfolio Information
-- Commenced redevelopment at New Loudon Center
-- Ames to Home Depot redevelopment progresses at Plaza 422
-- Portfolio occupancy up 10 basis points over second quarter
2003
-- Year-to-date 10% increase in rents for new and renewal leases
Third Quarter Operating Results - FFO up 15% over 2002 from
Continuing Operations
FFO for the third quarter 2003 was $6.7 million, or $0.23 per
share on a fully diluted basis. This represents a 10% increase over
2002 FFO of $5.9 million, or $0.21 per share and a 15% increase over
2002 FFO from continuing operations of $5.6 million, or $0.20 per
share. FFO for the nine months ended September 30, 2003 was $21.2
million, or $0.73 per share. This compares to FFO of $24.5 million, or
$0.84 per share for the same period in 2002. Included in 2002 is a
total of $0.22 of FFO as a result of $3.8 million of lease termination
income received from a single tenant and $2.6 million of FFO from
discontinued operations.
Net income for the third quarter 2003 was $2.4 million, or $0.09
per share on a fully diluted basis. This compares with net income of
$1.9 million, or $0.08 per share, which included a loss from
discontinued operations of $0.1 million. Net income for the nine
months ended September 30, 2003 was $8.3 million, or $0.31 per share
compared to 2002 net income of $12.2 million or $0.48 per share.
Included in 2002 net income is $3.8 million of lease termination
income received from a single tenant and $2.1 million in income from
discontinued operations, totaling $0.21 per share.
Outlook - Guidance for 2003 Reaffirmed
The Company currently forecasts its 2003 FFO will be at the higher
end of its previously stated range of $0.92 to $0.95 per share on a
fully diluted basis and 2003 earnings per diluted share range of $0.36
to $0.39 per share. Management will discuss further details for the
2003 forecast in the conference call to be conducted November 4, 2003.
The following is a reconciliation of the calculation of FFO per
diluted share and earnings per diluted share:
Guidance Range for 2003 Low High
- ----------------------- ----- ------
Earnings per diluted share $0.36 $0.39
Depreciation of real estate and amortization of leasing
costs:
Wholly owned and consolidated partnerships 0.49 0.49
Unconsolidated partnerships 0.07 0.07
---- ------
Funds from operations $0.92 $0.95
==== ======
Portfolio Activity - Occupancy Up - Redevelopment Underway at Two
of the Four Former Ames Locations
Third quarter 2003 occupancy increased 10 basis points, from 87.7%
for second quarter 2003 to 87.8% for third quarter 2003. Current
occupancy reflects the temporary effect of the Ames closings (4.7% of
total portfolio occupancy) during the fourth quarter of 2002, which
offset other occupancy increases and brought year over year occupancy
down 3.1% from third quarter 2002 occupancy of 90.9%. Excluding the
effect of Ames, year-over-year occupancy was up 150 basis points. The
re-anchoring of the Ames shopping centers is currently underway.
Year to date through September 30, 2003, the Company executed new
and renewal leases totaling 377,000 square feet at an average increase
in rents of 10% on a cash basis.
Excluding the $0.5 million effect from the Ames locations, same
store net operating income ("NOI") was up 4.0% third quarter 2003 over
2002. Including the impact from these closings, NOI declined $0.1
million, or 0.9%.
Redevelopment and Re-anchoring of Former Ames locations
New Loudon Center, Latham, NY
In connection with the redevelopment of the New Loudon Center,
Acadia has finalized leases totaling 115,000 square feet with two new
co-anchors. Replacing the former Ames, The Bon Ton Department Store
will occupy 66,000 square feet at a 15% increase over Ames' base rent.
In addition, the Company has recaptured 48,000 square feet from a
tenant that was considered a credit risk and will install a new 49,000
square foot Raymour and Flanigan Furniture store. The Company also
anticipates expanding an existing Marshall's at this property.
Following the completion of this project in mid-2004, this revitalized
community shopping center will be 100% leased.
Plaza 422, Lebanon, PA
During the third quarter, the Company made significant progress at
the Plaza 422 redevelopment project. The Company completed the
landlord's construction obligation to Home Depot, expanding the former
83,000 square foot Ames space to 102,000 square feet. Home Depot is
currently performing its work and, upon its scheduled opening during
the first quarter of 2004, will pay base rent double that which was
paid by Ames. In connection with the redevelopment project, Acadia
vacated and demolished the contiguous enclosed portion of the center
and recaptured another 70,000 square feet of space, for which
re-leasing is underway.
Additional Re-anchoring - Midwest Portfolio
Located in the Chicago suburb of Naperville, the Hobson West
Plaza, which was formerly anchored by Eagle supermarket, will be
re-anchored with a 51,000 square foot Bobak's market. Bobak's, a
regional specialty market, will also include a dine-in component as
part of its store.
Joint Venture Portfolio - Anchor Expansion
To date, Acadia's acquisition joint venture has purchased three
portfolios. With a combined occupancy at 98.9%, these portfolios
continue to perform consistent with the Company's expectations. The
Company continues to pursue opportunities to add value to these
acquisitions.
At the Amherst Marketplace, located in the Cleveland suburb of
Amherst, Giant Eagle supermarket is expanding into an 11,000 square
foot recaptured CVS space. In addition to increasing the store
footprint from 66,000 to 77,000 square feet, a Giant Eagle gas station
has been added to the property.
Balance Sheet - Solid Financial Position
Acadia continues to maintain its solid balance sheet and minimize
its interest rate exposure. As of September 30, 2003, the fixed-rate
component of the Company's portfolio mortgage debt was 82%, which
includes its pro-rata share of joint venture debt and interest rate
swaps matched to debt maturities. Subsequent to the third quarter, the
Company retired an additional $7.4 million of variable-rate debt.
Further evidencing the strength of the Company's balance sheet are
conservative financial ratios for the third quarter as follows:
-- Conservative dividend payout ratio of 62% of FFO
-- Fixed-charge ratio of 2.9 times (EBITDA / interest expense
plus preferred distributions)
-- 5.8% blended cost of portfolio debt
-- 39% debt to total market capitalization at September 30, 2003.
This compares to 49% as of year-end 2002
Acadia Realty Trust Waives Share Ownership Limitation at Request
of Institutional Investor
During the third quarter 2003, the Board of Trustees approved a
resolution permitting one of its newer institutional shareholders,
which currently owns 6% of the Company's outstanding common shares, to
acquire additional shares through open market purchases. This waiver
of the Company's share ownership limitation, which was approved in
response to a request from this institutional investor, will permit
this shareholder to acquire up to an additional 3.7% of the Company's
shares through March 31, 2004, or an aggregate of up to 9.7% of the
Company's shares.
Management Team Promotions
Acadia announced the promotions of Joseph Napolitano to the
position of Senior Vice President, Director of Operations and Robert
Scholem to Vice President, Director of Property Management. As
Director of Operations, Mr. Napolitano is responsible for overseeing
the company's internal operations. Previously, he held the position of
Senior Vice President, Director of Property Management. Mr. Napolitano
has been with the Company since 1995. Mr. Scholem is responsible for
overseeing all property management for Acadia. Mr. Scholem joined the
Company in 1998.
Management Comments
Commenting on the results for the quarter, Kenneth Bernstein,
President and CEO, stated, "Our third quarter performance, driven by
balance sheet strength, portfolio performance and progress in our
redevelopment program, provides continuing evidence that our key
business initiatives remain on track. This success, coupled with our
opportunity for disciplined and opportunistic external growth through
our acquisition JV, should enable us to continue producing strong
results and long-term earnings growth."
Investor Conference Call
Kenneth Bernstein, President and CEO, and Michael Nelsen, Sr. Vice
President and CFO, will conduct a conference call November 4, 2003 at
2 PM EST to review the Company's earnings and operating results. The
live conference call can be accessed by dialing 888-339-2688
(internationally 617-847-3007). No passcode is required.
The call will also be webcast and can be accessed in a listen-only
mode at Acadia's web site at www.acadiarealty.com. If you are unable
to participate during the live webcast, the call will be archived and
available on Acadia's website. Alternatively, to access the replay by
phone, dial 888-286-8010 (internationally 617-801-6888). The passcode
will be 86409489. The phone replay will be available through Tuesday,
November 11, 2003.
Acadia Realty Trust, headquartered in White Plains, NY, is a fully
integrated and self-managed real estate investment trust which
specializes in the acquisition, redevelopment and operation of
shopping centers which are anchored by grocery and value-oriented
retail. Acadia currently owns (or has interests in) and operates 62
properties totaling approximately nine million square feet, located
primarily in the Eastern United States.
Certain matters in this press release may constitute
forward-looking statements within the meaning of federal securities
law and as such may involve known and unknown risk, uncertainties and
other factors which may cause the actual results, performances or
achievements of Acadia to be materially different from any future
results, performances or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements speak only
as of the date of this document. Acadia expressly disclaims any
obligation or undertaking to release publicly any updates or revisions
to any forward-looking statements contained herein to reflect any
change in Acadia's expectations with regard thereto or change in
events, conditions or circumstances on which any such statement is
based. The Company also refers you to the documents filed by the
Company, from time to time, with the Securities and Exchange
Commission, including without limitation the Company's Annual Report
on Form 10-K and the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" incorporated by
reference therein, for a discussion of such risks and uncertainties.
For more information on Acadia Realty Trust, visit the Company's
Web site at www.acadiarealty.com.
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights
For the Quarter and Nine Months ended September 30, 2003 and 2002
(amounts in thousands, except per share data)
STATEMENTS OF INCOME
For the For the nine
quarter ended months ended
Revenues September 30, September 30,
2003 2002 2003 2002
------- ------- ------- -------
Minimum rents $12,635 $12,175 $37,350 $35,896
Percentage rents 156 161 545 602
Expense reimbursements 3,012 2,795 9,625 8,061
Lease termination income -- -- -- 3,945
Other property income 169 144 481 453
Other 732 933 3,293 2,800
------- ------- ------- -------
Total revenues 16,704 16,208 51,294 51,757
------- ------- ------- -------
Operating expenses
Property operating 2,957 2,830 10,700 8,213
Real estate taxes 2,288 2,191 6,297 6,281
General and administrative 2,786 2,160 7,931 7,287
Depreciation and amortization 3,788 3,701 11,277 10,959
Abandoned project costs -- 274 -- 274
------- ------- ------- -------
Total operating expenses 11,819 11,156 36,205 33,014
------- ------- ------- -------
Operating income 4,885 5,052 15,089 18,743
Equity in earnings of
unconsolidated partnerships 629 101 1,777 325
Interest expense (2,882) (2,781) (8,413) (8,207)
(Loss) gain on sale (25) -- 1,187 1,530
Minority interest (183) (383) (1,310) (2,346)
------- ------- ------- -------
Income from continuing
operations 2,424 1,989 8,330 10,045
------- ------- ------- -------
Discontinued operations:
Operating income from
discontinued operations -- 123 -- 1,014
Impairment of real estate -- (197) -- (197)
(Loss) gain on sale of
properties -- (49) -- 1,783
Minority interest -- 15 -- (476)
------- ------- ------- -------
(Loss) income from
discontinued operations -- (108) -- 2,124
------- ------- ------- -------
Net income $ 2,424 $ 1,881 $ 8,330 $12,169
======= ======= ======= =======
Net income per Common Share -
Basic
Net income per Common Share -
Continuing operations $ .09 $ .08 $ .32 $ .40
======= ======= ======= =======
Net income per Common Share $ .09 $ .08 $ .32 $ .48
======= ======= ======= =======
Weighted average Common
Shares 27,236 24,974 26,338 25,370
======= ======= ======= =======
Net income per Common Share -
Diluted (a)
Net income per Common Share -
Continuing operations $ .09 $ .08 $ .31 $ .40
======= ======= ======= =======
Net income per Common Share $ .09 $ .08 $ .31 $ .48
======= ======= ======= =======
Weighted average Common
Shares 28,300 25,519 27,142 25,553
======= ======= ======= =======
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights
For the Quarter and Nine Months ended September 30, 2003 and 2002
(amounts in thousands, except per share data)
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS (b)
For the For the nine
quarter ended months ended
September September
30, 30,
2003 2002 2003 2002
------ ------ ------- -------
Net income $2,424 $1,881 $ 8,330 $12,169
Depreciation of real
estate and amortization
of leasing costs:
Wholly owned and
consolidated partnerships 3,571 3,540 10,541 11,680
Unconsolidated partnerships 547 163 1,557 479
Income attributable to
minority interest in
Operating Partnership 117 276 758 1,980
Loss (gain) on sale of
properties -- 49 -- (1,783)
------ ------ ------- -------
Funds from operations 6,659 5,909 21,186 24,525
Funds from operations -
Discontinued operations -- (276) -- (2,575)
------ ------ ------- -------
Funds from operations -
Continuing operations $6,659 $5,633 $21,186 $21,950
====== ====== ======= =======
Funds from operations
per share - Basic (c)
Funds from operations
per share - Continuing
operations $ .23 $ .20 $ .74 $ .75
====== ====== ======= =======
Funds from operations
per share $ .23 $ .21 $ .74 $ .84
====== ====== ======= =======
Funds from operations
per share - Diluted (c)
Funds from operations
per share - Continuing
operations $ .23 $ .20 $ .73 $ .75
====== ====== ======= =======
Funds from operations
per share $ .23 $ .21 $ .73 $ .84
====== ====== ======= =======
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights
As of September 30, 2003 and December 31, 2002
(amounts in thousands, except per share data)
SELECTED BALANCE SHEET INFORMATION
September December
30, 31,
2003 2002
---------- ----------
Cash and cash equivalents $ 29,631 $ 45,168
Rental property, at cost 425,581 413,878
Total assets 405,421 410,935
Mortgage notes payable 198,777 202,361
Total liabilities 221,637 224,487
Fixed rate debt: (d) 156,770 145,236
% of outstanding debt 79% 72%
Weighted average
interest rate 6.6% 6.8%
Variable rate debt $ 42,007 $ 57,125
% of outstanding debt 21% 28%
Weighted average
interest rate 2.9% 3.3%
Total weighted average interest rate 5.8% 5.8%
Notes:
(a) Reflects the potential impact if certain Preferred OP Units
and Common Share options were converted to Common Shares at the
beginning of the period. Net income would be increased by $50 for each
of the quarters ended September 30, 2003 and 2002 and $150 for each of
the nine month periods ended September 30, 2003 and 2002.
(b) The Company considers funds from operations ("FFO") as defined
by the National Association of Real Estate Investment Trusts
("NAREIT") to be an appropriate supplemental disclosure of operating
performance for an equity REIT due to its widespread acceptance and
use within the REIT and analyst communities. FFO is presented to
assist investors in analyzing the performance of the Company. It is
helpful as it excludes various items included in net income that are
not indicative of the operating performance, such as gains (or losses)
from sales of property and depreciation and amortization. However, the
Company's method of calculating FFO may be different from methods used
by other REITs and, accordingly, may not be comparable to such other
REITs. FFO does not represent cash generated from operations as
defined by generally accepted accounting principles ("GAAP") and is
not indicative of cash available to fund all cash needs, including
distributions. It should not be considered as an alternative to net
income for the purpose of evaluating the Company's performance or to
cash flows as a measure of liquidity. Consistent with the NAREIT
definition, the Company defines FFO as net income (computed in
accordance with GAAP), excluding gains (or losses) from sales of
depreciated property, plus depreciation and amortization, and after
adjustments for unconsolidated partnerships and joint ventures. The
Company historically has added back impairments in real estate in
calculating FFO, in accordance with prior NAREIT guidance. However,
NAREIT, based on discussions with the SEC, has provided revised
guidance that provides that impairments should not be added back to
net income in calculating FFO. As such, historical FFO has been
restated consistent with this revised guidance.
Included in FFO for the nine months ended September 30, 2003 and
2002 are gains from the sale of land of $659 and $957, respectively
(amounts are net of minority interests).
(c) In addition to the weighted average Common Shares outstanding
for the period, diluted FFO also assumes full conversion of a weighted
average 1,227 and 3,449 OP Units into Common Shares for the quarters
ended September 30, 2003 and 2002, and 2,113 and 3,822 OP Units into
Common Shares for the nine months ended September 30, 2003 and 2002.
(d) Fixed-rate debt includes $86,791 of notional principal fixed
through swap transactions. Conversely, variable-rate debt excludes
this amount.
CONTACT: Acadia Realty Trust
Investor Relations:
Jon Grisham, 914-288-8142