Kenneth F. Bernstein, President and CEO of Acadia, commented:

"We began the year with continued momentum from the most impactful growth drivers of our business. Our street portfolio continues to be the key contributor to our internal growth, delivering 6.8% same-property NOI growth for the quarter. In addition to a stable leasing environment, we continue to deploy capital in a disciplined manner, completing approximately $375 million year-to-date in accretive acquisitions for our Core and Investment Management Platforms. These acquisitions increased our scale in our key high growth corridors of New York City (SoHo, Williamsburg) and M Street in Georgetown and this scale has proven successful in our ability to grow rents. Despite macro uncertainty, we believe that our strong internal growth and the strength of our balance sheet position us well for continued earnings growth, enabling us to exceed our expectations for the quarter and raise our full-year guidance."

Financial Results

2025

2024

1Q

1Q

Net earnings per share attributable to Acadia

$0.01

$0.03

Depreciation of real estate and amortization of leasing costs (net of noncontrolling interest share)

0.24

0.24

Loss on disposition on real estate properties (net of noncontrolling interest share)

—

0.01

Impairment charges (net of noncontrolling interest share)

0.01

—

Loss on change in control

0.08

—

NAREIT Funds From Operations per share attributable to Common Shareholders and Common OP Unit holders

$0.34

$0.28

Net unrealized holding (gain) loss ¹

(0.01)

0.01

Funds From Operations Before Special Items and Realized Gains and Promotes per share attributable to Common Shareholders and Common OP Unit holders

$0.34 ²

$0.29

Realized gains and promotes ¹

—

0.04

Funds From Operations Before Special Items per share attributable to Common Shareholders and Common OP Unit holders

$0.34

$0.33

________

1. It is the Company's policy to exclude unrealized gains and losses from FFO Before Special items and to include realized gains related to the Company's investment in Albertsons. The Company had no realized investment gains for the quarter ended March 31, 2025, and had realized investment gains of $4.0 million for the quarter ended March 31, 2024. Refer to the "Notes to Financial Highlights" on page 14 of this document. Additionally, and as previously discussed, the Company recognized approximately $8.0 million, or $0.06 per share, related to the termination of its lease with Whole Foods at City Center for the quarter ended March 31, 2025.
2. Total does not foot due to rounding.

• Net income for the quarter ended March 31, 2025, was $1.3 million, or $0.01 per share. This includes a non-cash charge of $9.6 million, or $0.08 per share, due to the change in control accounting related to the Company's increased ownership and control of the Georgetown Renaissance Portfolio.
• This compares with net income of $3.0 million, or $0.03 per share, for the quarter ended March 31, 2024.

NAREIT FFO

• NAREIT Funds From Operations ("NAREIT FFO") for the quarter ended March 31, 2025 was $44.6 million, or $0.34 per share.
• This compares with NAREIT FFO of $31.0 million, or $0.28 per share, for the quarter ended March 31, 2024.

FFO Before Special Items

• Funds From Operations ("FFO") Before Special Items for the quarter ended March 31, 2025 was $43.4 million, or $0.34 per share. The Company did not have any realized investment gains from the sale of Albertson's stock during the quarter ended March 31, 2025 and reaffirmed its expectations of $16.0-$19.0 million of realized gains and promotes for its full year 2025 guidance.
• This compares with FFO Before Special Items of $37.0 million, or $0.33 per share, for the quarter ended March 31, 2024, which includes $4.0 million, or $0.04 per share, of realized investment gains from the sale of Albertsons' stock and $0.03 per share from a payment related to a terminated disposition.
  

During the quarter ended March, 31, 2025, as previously announced, the lease with Whole Foods at City Center in San Francisco was terminated. As previously discussed, the Company received payments of approximately $6.0 million and $2.0 million ($8.0 million or $0.06 per share in the aggregate) that it has recognized as rental and termination income, respectively, which are included in Net Income, NAREIT FFO and FFO Before Special Items. Within its pro-rata supplemental financial information, the aggregate payments of approximately $8.0 million are included in ‘Other Income’ and are excluded from Same Property NOI.

Same-Property NOI

• Same-Property Net Operating Income ("NOI") growth, excluding redevelopments, increased 4.1% for the first quarter, driven by growth of 6.8% from the street portfolio.
• The Company reaffirmed its full year 2025 guidance of 5-6%.
  

Leasing and Occupancy Update

• As of March 31, 2025, Core Portfolio leased and occupied percentages declined by 30 and 140 basis points, respectively, to 95.5% leased and 91.7% occupied compared to 95.8% leased and 93.1% occupied as of December 31, 2024. The occupancy decline was primarily the result of an anticipated expiration of a locally operated anchor in a suburban shopping center. This space has been profitably re-leased with rent commencement expected in the third quarter of 2025.
• Core Signed Not Open ("SNO") pipeline (excluding redevelopments) increased to approximately $8.9 million of annualized base rent ("ABR") at March 31, 2025, which represented approximately 6% of in-place rents.
• For the quarter ended March 31, 2025, conforming GAAP and cash leasing spreads on new leases were 71% and 59%, respectively, primarily driven by street leases in its Georgetown Renaissance Portfolio.
  • Following its increased ownership and control of the Georgetown Portfolio in January 2025, the Company generated cash spreads of 74% on two new leases executed on M Street with an apparel retailer and a well-known technology company.
• Within its Core Redevelopment Portfolio, the Company signed a new lease with T&T Supermarket, a subsidiary of Loblaw Companies Limited, at City Center in San Francisco, California. This lease replaced the lease that was terminated with Whole Foods. T&T Supermarket is Canada’s largest Asian grocery store chain. T&T intends to operate a full-service unique shopping experience with a vast selection of authentic Asian products that aims to create a destination for bringing the community together with food. The lease with T&T is subject to customary conditions and approvals, and is currently anticipated to commence in the second half of 2026.
  

2025 Guidance

Revised

Prior ¹

Net earnings per share attributable to Acadia

$0.12-$0.16

$0.22-$0.27

Impact of transactional activity

Depreciation of real estate and amortization of leasing costs (net of noncontrolling interest share)

1.00

0.96

Impairment charges (net of noncontrolling interest share)

0.01

—

Loss on change in control

0.08

—

Noncontrolling interest in Operating Partnership

0.01

0.01

NAREIT Funds from operations per share attributable to Common Shareholders and Common OP Unit holders

$1.22-$1.26

$1.19-$1.24

Net unrealized holding gain ²

(0.01)

—

Funds From Operations Before Special Items and Realized Gains per share attributable to Common Shareholders and Common OP Unit holders

$1.21-$1.25

$1.19-$1.24

Realized gains and promotes ³

0.11-0.14

0.11-0.15

Funds From Operations Before Special Items per share attributable to Common Shareholders and Common OP Unit holders

$1.32-$1.39

$1.30-$1.39

________

1. The prior guidance range represents the amounts published on February 11, 2025 in connection with the Company's fourth quarter 2024 earnings release.
2. This represents the actual unrealized mark-to-market holdings gain related to the Company's investment in Albertsons, which was recognized in NAREIT FFO for the quarter ended March 31, 2025. The Company has not reflected any forward-looking estimates involving future unrealized holding gains or losses (i.e., changes in share price) on Albertsons in its 2025 guidance assumptions.
3. It is the Company's policy to exclude unrealized gains and losses from FFO Before Special items and to include realized gains related to the Company's investment in Albertsons. The Company did not realize any gains for the three months ended March 31, 2025. The Company reaffirms its prior guidance of $16-$19 million of realized gains and promotes. The per share difference between the revised and prior guidance relates to the increased number of shares.

Live Conference Call:

Date:

Wednesday, April 30, 2025

Time:

12:00 PM ET

Participant call:

First Quarter 2025 Dial-In

Participant webcast:

First Quarter 2025 Webcast

Webcast Listen-only and Replay:

www.acadiarealty.com/investors under Investors, Presentations & Events

ACADIA REALTY TRUST AND SUBSIDIARIES

Condensed Consolidated Statements of Operations ⁽¹⁾

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

Three Months Ended
March 31,

2025

2024

Revenues

Rental

$

102,640

$

86,037

Other

1,754

5,319

Total revenues

104,394

91,356

Expenses

Depreciation and amortization

39,440

34,940

General and administrative

11,597

9,768

Real estate taxes

13,303

12,346

Property operating

18,280

19,096

Impairment charges

6,450

—

Total expenses

89,070

76,150

Loss on disposition of properties

—

(1,198

)

Operating income

15,324

14,008

Equity in losses of unconsolidated affiliates

(1,713

)

(312

)

Interest income

6,096

5,238

Realized and unrealized holding gains (losses) on investments and other

1,621

(2,051

)

Interest expense

(23,247

)

(23,709

)

Loss on change in control

(9,622

)

—

Loss from continuing operations before income taxes

(11,541

)

(6,826

)

Income tax provision

(116

)

(31

)

Net loss

(11,657

)

(6,857

)

Net loss attributable to redeemable noncontrolling interests

1,669

2,554

Net loss attributable to noncontrolling interests

11,596

7,572

Net income attributable to Acadia shareholders

$

1,608

$

3,269

Less: earnings attributable to unvested participating securities

(339

)

(288

)

Net income attributable to Common Shareholders - basic earnings per share

$

1,269

$

2,981

Income from continuing operations net of income attributable to participating securities for diluted earnings per share

$

1,269

$

2,981

Weighted average shares for basic earnings per share

121,329

102,128

Weighted average shares for diluted earnings per share

121,329

102,128

Net earnings per share - basic ⁽²⁾

$

0.01

$

0.03

Net earnings per share - diluted ⁽²⁾

$

0.01

$

0.03

ACADIA REALTY TRUST AND SUBSIDIARIES

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

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

Three Months Ended
March 31,

2025

2024

Net income attributable to Acadia

$

1,608

$

3,269

Depreciation of real estate and amortization of leasing costs (net of noncontrolling interests' share)

31,607

27,087

Impairment charges (net of noncontrolling interests' share)

1,583

—

Loss on disposition of properties (net of noncontrolling interests' share)

—

275

Loss on change in control

9,622

—

Income attributable to Common OP Unit holders

96

203

Distributions - Preferred OP Units

67

123

Funds from operations attributable to Common Shareholders and Common OP Unit holders - Diluted

$

44,583

$

30,957

Transaction costs

526

—

Unrealized holding (gain) loss (net of noncontrolling interest share)

(1,672

)

2,015

Realized gain

—

3,994

FFO before Special Items attributable to Common Shareholder and Common OP Unit holders ¹

$

43,437

$

36,966

Funds From Operations per Share - Diluted

Basic weighted-average shares outstanding, GAAP earnings

121,329

102,128

Weighted-average OP Units outstanding

7,778

7,717

Assumed conversion of Preferred OP Units to Common Shares

256

464

Assumed conversion of LTIP units and restricted share units to Common Shares

—

742

Weighted average number of Common Shares and Common OP Units

129,363

111,051

Diluted Funds from operations, per Common Share and Common OP Unit

$

0.34

$

0.28

Diluted Funds from operations before Special Items, per Common Share and Common OP Unit

$

0.34

$

0.33

ACADIA REALTY TRUST AND SUBSIDIARIES

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

(Unaudited, Dollars in thousands)

Three Months Ended
March 31,

2025

2024

Consolidated operating income

$

15,324

$

14,008

Add back:

General and administrative

11,597

9,768

Depreciation and amortization

39,440

34,940

Impairment charges

6,450

—

Loss on disposition of properties

—

1,198

Less:

Above/below-market rent, straight-line rent and other adjustments

(2,704

)

(4,608

)

Termination income

(8,366

)

—

Consolidated NOI

61,741

55,306

Redeemable noncontrolling interest in consolidated NOI

(1,888

)

(204

)

Noncontrolling interest in consolidated NOI

(17,655

)

(17,768

)

Less: Operating Partnership's interest in Investment Management NOI included above

(6,747

)

(5,341

)

Add: Operating Partnership's share of unconsolidated joint ventures NOI ⁽⁵⁾

1,279

3,961

Core Portfolio NOI

$

36,730

$

35,954

Reconciliation of Same-Property NOI

(Unaudited, Dollars in thousands)

Three Months Ended
March 31,

2025

2024

Core Portfolio NOI

$

36,730

$

35,954

Less properties excluded from Same-Property NOI

(2,889

)

(3,451

)

Same-Property NOI

$

33,841

$

32,503

Percent change from prior year period

4.1

%

Components of Same-Property NOI:

Same-Property Revenues

$

47,636

$

46,445

Same-Property Operating Expenses

(13,795

)

(13,942

)

Same-Property NOI

$

33,841

$

32,503

ACADIA REALTY TRUST AND SUBSIDIARIES

Condensed Consolidated Balance Sheets ⁽¹⁾

(Unaudited, Dollars in thousands, except shares)

As of

March 31,
2025

December 31,
2024

ASSETS

Investments in real estate, at cost

Buildings and improvements

$

3,359,373

$

3,174,250

Tenant improvements

311,562

304,645

Land

1,088,389

906,031

Construction in progress

28,807

23,704

Right-of-use assets - finance leases

61,366

61,366

Total

4,849,497

4,469,996

Less: Accumulated depreciation and amortization

(954,293

)

(926,022

)

Operating real estate, net

3,895,204

3,543,974

Real estate under development

142,110

129,619

Net investments in real estate

4,037,314

3,673,593

Notes receivable, net ($2,127 and $2,004 of allowance for credit losses as of March 31, 2025 and December 31, 2024, respectively)

125,701

126,584

Investments in and advances to unconsolidated affiliates

177,969

209,232

Other assets, net

236,985

223,767

Right-of-use assets - operating leases, net

26,655

25,531

Cash and cash equivalents

31,984

16,806

Restricted cash

24,320

22,897

Marketable securities

16,539

14,771

Rents receivable, net

58,209

58,022

Total assets

$

4,735,676

$

4,371,203

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

Liabilities:

Mortgage and other notes payable, net

$

1,055,832

$

953,700

Unsecured notes payable, net

569,951

569,566

Unsecured line of credit

—

14,000

Accounts payable and other liabilities

247,704

232,726

Lease liabilities - operating leases

28,933

27,920

Dividends and distributions payable

27,735

24,505

Distributions in excess of income from, and investments in, unconsolidated affiliates

16,878

16,514

Total liabilities

1,947,033

1,838,931

Commitments and contingencies

Redeemable noncontrolling interests

25,897

30,583

Equity:

Acadia Shareholders' Equity

Common shares, $0.001 par value per share, authorized 200,000,000 shares, issued and outstanding 130,955,940 and 119,657,594 shares as of March 31, 2025 and December 31, 2024, respectively

131

120

Additional paid-in capital

2,704,731

2,436,285

Accumulated other comprehensive income

27,064

38,650

Distributions in excess of accumulated earnings

(433,966

)

(409,383

)

Total Acadia shareholders’ equity

2,297,960

2,065,672

Noncontrolling interests

464,786

436,017

Total equity

2,762,746

2,501,689

Total liabilities, redeemable noncontrolling interests, and equity

$

4,735,676

$

4,371,203

(1)

(2)

(3)

gains (losses) from sales of real estate properties;

depreciation and amortization;

impairment of real estate properties;

gains and losses from change in control; and

after adjustments for unconsolidated partnerships and joint ventures.

charges, income and gains that management believes are not comparable and indicative of the results of the Company’s operating real estate portfolio;

the impact of the unrealized holding gains (losses) incidental to its main business, including those related to its Retailer Controlled Property Venture ("RCP") investments such as Albertsons; and

any realized income or gains from the Company’s investment in Albertsons.

(4)

(5)