In This Article:
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Same Store NOI Growth: Averaged over 6% for the past three years.
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Acquisitions: Closed or under contract for $270 million, with $120 million already closed.
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Initial GAAP Yield on Acquisitions: Mid 6% range.
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Cash Yield on Acquisitions: Mid 5% range, growing to over 7% in the next few years.
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Earnings Accretion from Acquisitions: Over 1% upon closing, close to 3% upon stabilization in 2027-2028.
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Leasing Activity: Signed $7 million in core leases in Q3.
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Signed Not Yet Open Pipeline: Increased to $10 million.
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FFO: $32 per share, reflecting sequential growth of $1 and year-over-year growth of $5 per share.
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Core Same Store NOI Growth: 5.9% for the quarter, 5.7% for the year.
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Debt to GAV Ratio: Reduced to about 30%.
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Debt to EBITDA Ratio: Reduced to 5.6 times.
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Revolver Capacity: Increased to $525 million.
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Incremental Core ABR: Approximately $11.6 million, representing core growth of approximately 8%.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Acadia Realty Trust (NYSE:AKR) reported strong internal growth, with an average of over 6% same-store NOI growth over the past three years.
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The company has maintained a strong balance sheet, securing over $1 billion in debt and equity capital on a non-dilutive basis.
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Acadia Realty Trust (NYSE:AKR) has closed or is under contract for $270 million in acquisitions, which are expected to contribute significantly to earnings accretion.
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The company has a robust leasing pipeline, having signed a record $7 million in core leases in the third quarter, with several more leases in advanced negotiation stages.
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Acadia Realty Trust (NYSE:AKR) is expanding its portfolio with strategic acquisitions in high-growth markets like SoHo, Williamsburg, and Georgetown, which are expected to drive long-term growth.
Negative Points
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The retail industry has faced a challenging capital market backdrop, impacting on-balance sheet acquisitions.
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There is competition in the street retail market, which could affect Acadia Realty Trust (NYSE:AKR)'s ability to secure favorable deals.
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The company's occupancy rate dipped slightly, which could impact short-term revenue until new leases commence.
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Acadia Realty Trust (NYSE:AKR) faces potential risks with new development projects, such as the Henderson Avenue expansion, which could be impacted by market demand fluctuations.
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The company must carefully manage its cost of capital to ensure that acquisitions remain accretive to earnings and NAV.