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1. Company Snapshot

1.a. Company Description

Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual – Core Portfolio and Fund – operating platforms and its disciplined, location-driven investment strategy.Acadia Realty Trust is accomplishing this goal by building a best-in-class core real estate portfolio with meaningful concentrations of assets in the nation's most dynamic corridors; making profitable opportunistic and value-add investments through its series of discretionary, institutional funds; and maintaining a strong balance sheet.

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1.b. Last Insights on AKR

The recent 3-month performance of Acadia Realty Trust was negatively impacted by a Q4 earnings miss, with FFO coming in at $0.32 per share, missing the Zacks Consensus Estimate of $0.33 per share. This underperformance was partly due to escalating medical care costs, which increased by 14.1% year-over-year, likely hurting its Q1 earnings. Additionally, the company's high medical care ratios and slowing growth in its government-backed Medicaid insurance plans contributed to the disappointing results.

1.c. Company Highlights

2. Strong Q3 Earnings: Accelerating NOI Growth and Leasing Activity

The company's Q3 earnings report revealed a robust financial performance, with same-store NOI growth coming in ahead of expectations at 8.2%, driven by $6.7 million in pro rata rents commencing during the quarter. Earnings per share (EPS) was $0.33, in line with analyst estimates. The revenue growth was fueled by the street retail portfolio, which delivered 13% growth. The company's funds from operations (FFO) increased sequentially by $0.01 to $0.29 per share. Analysts estimate next year's revenue growth at 10.1%, indicating a positive outlook for the company's future performance.

Publication Date: Nov -04

📋 Highlights
  • Accelerated NOI & Same-Store Growth: Achieved 8.2% same-store NOI growth in Q3 (vs. 5% target) and 13% growth in street retail, with 2026 projections of 6-7% Q4 same-store growth.
  • Strong Leasing Momentum: Signed $11.4M in leases YTD, with $8M in active pipeline, including new stores in Williamsburg, Boston, and Los Angeles, driving $7M from the SNO Pipeline.
  • Acquisition & Redevelopment Expansion: Year-to-date acquisitions hit $480M, targeting $1B by year-end, including a $63M acquisition (Avenue at West Cobb) and $212M equity raised for the Henderson Dallas project.
  • Balance Sheet Strength: Maintains 5x debt-to-EBITDA with $800M in liquidity, leveraging mid-4s borrowing costs on 5-year swaps, and $212M equity raised at $20/share for growth.
  • Portfolio Rebalancing & Outperformance: Street/urban occupancy rose 280 bps QOQ, with suburban portfolio underperforming; core properties showed 15-40% sales growth in SoHo, Bleecker, and Chicago.

Operational Highlights

The company's leasing activity remained strong, with $3.7 million in new leases signed during the quarter, resulting in an $11.9 million signed not yet open pipeline. The street and urban occupancy increased sequentially by 280 basis points, with several hundred basis points of future growth anticipated. As Ken Bernstein noted, "tenant performance at our properties continues to accelerate, especially in street retail." The company's pipeline has increased to $8 million, driven by new leases on key locations such as North 6th Street in Williamsburg and Newbury Street in Boston.

Valuation and Outlook

With a P/E Ratio of 206.58 and an EV/EBITDA of 19.14, the company's valuation appears to be demanding. However, the dividend yield of 4.04% and free cash flow yield of 5.02% provide a relatively attractive return profile. The company's return on invested capital (ROIC) stands at 9.1%, indicating a decent return on investment. As the company continues to execute on its leasing pipeline and drive NOI growth, investors may want to keep a close eye on the stock's valuation multiples to determine if the current price is justified.

Growth Prospects

The company is optimistic about its growth prospects, with a strong pipeline of leasing opportunities and a forecast for 2026 that indicates continued acceleration in NOI growth. The company's acquisition activity has been robust, with over $480 million in acquisitions year-to-date, and is expected to double that amount by year-end. The company's debt-to-EBITDA ratio stands at 5x, with over $800 million available under its revolver and forward equity contracts, providing balance sheet flexibility and liquidity to fund growth.

3. NewsRoom

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Head to Head Contrast: CBL & Associates Properties (OTCMKTS:CBLAQ) and Acadia Realty Trust (NYSE:AKR)

Dec -01

Source: defenseworld.net

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Acadia Realty Trust: Undervalued REIT With Strong Growth Ahead

Nov -17

Source: seekingalpha.com

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Acadia Realty Trust to Present at Jefferies Real Estate Conference

Nov -13

Source: businesswire.com

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Acadia Realty Trust $AKR Shares Purchased by Sumitomo Mitsui Trust Group Inc.

Oct -30

Source: defenseworld.net

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Acadia Realty Trust $AKR Shares Acquired by Asset Management One Co. Ltd.

Oct -30

Source: defenseworld.net

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Top Growth Stocks To Follow Now – October 28th

Oct -30

Source: defenseworld.net

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Acadia Realty Trust (AKR) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

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Acadia Realty Trust (AKR) Matches Q3 FFO Estimates

Oct -28

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Core Portfolio

Expected Growth: 6%

Acadia Realty Trust's Core Portfolio growth is driven by strategic acquisitions, rent increases, and high occupancy rates. The 6% growth is attributed to a strong retail sector, with a focus on experiential and essential retail, as well as a diversified tenant base. Additionally, the company's active asset management and redevelopment initiatives contribute to the portfolio's growth.

Funds

Expected Growth: 6%

Acadia Realty Trust's 6% growth is driven by its diversified portfolio of retail and mixed-use properties, strategic acquisitions, and strong operational performance. The trust's focus on high-barrier-to-entry markets, such as New York City and San Francisco, also contributes to its growth. Additionally, Acadia's ability to increase rents and occupancy rates, as well as its solid balance sheet, support its growth momentum.

7. Detailed Products

Retail Properties

Acadia Realty Trust owns and operates a diverse portfolio of retail properties, including shopping centers, strip centers, and freestanding retail locations.

Office Properties

Acadia Realty Trust owns and operates office buildings, providing space for businesses and professionals to work and collaborate.

Mixed-Use Properties

Acadia Realty Trust develops and operates mixed-use properties, combining retail, office, and residential spaces in a single development.

Apartment Communities

Acadia Realty Trust owns and operates apartment communities, providing residential housing for individuals and families.

Fund Management

Acadia Realty Trust offers fund management services, providing investment opportunities in real estate for institutional investors.

8. Acadia Realty Trust's Porter Forces

Forces Ranking

Threat Of Substitutes

Acadia Realty Trust operates in the real estate investment trust (REIT) industry, which is characterized by a moderate level of substitutes. While there are alternative investment options available to investors, the company's diversified portfolio and strong brand recognition help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Acadia Realty Trust's customers, primarily tenants, have limited bargaining power due to the company's strong market position and diversified portfolio. This limits the ability of customers to negotiate rents and lease terms.

Bargaining Power Of Suppliers

Acadia Realty Trust has a diversified portfolio of properties, which reduces its dependence on any single supplier. Additionally, the company's strong financial position and market reputation give it bargaining power in negotiating with suppliers.

Threat Of New Entrants

The real estate investment trust (REIT) industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This limits the threat of new entrants and provides a competitive advantage to established players like Acadia Realty Trust.

Intensity Of Rivalry

The REIT industry is highly competitive, with many established players competing for tenants and investment capital. However, Acadia Realty Trust's diversified portfolio and strong brand recognition help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.38%
Debt Cost 3.95%
Equity Weight 46.62%
Equity Cost 11.10%
WACC 7.28%
Leverage 114.49%

11. Quality Control: Acadia Realty Trust passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NETSTREIT

A-Score: 6.7/10

Value: 3.0

Growth: 6.2

Quality: 6.2

Yield: 8.0

Momentum: 7.0

Volatility: 10.0

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Getty Realty

A-Score: 6.2/10

Value: 3.1

Growth: 4.6

Quality: 6.5

Yield: 10.0

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

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Saul Centers

A-Score: 6.1/10

Value: 5.7

Growth: 3.6

Quality: 6.1

Yield: 10.0

Momentum: 2.0

Volatility: 9.3

1-Year Total Return ->

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Whitestone REIT

A-Score: 5.8/10

Value: 5.0

Growth: 4.3

Quality: 6.5

Yield: 7.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Acadia Realty

A-Score: 5.1/10

Value: 2.6

Growth: 2.9

Quality: 4.9

Yield: 8.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Retail Opportunity Investments

A-Score: 5.0/10

Value: 2.8

Growth: 4.6

Quality: 5.8

Yield: 4.0

Momentum: 6.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.68$

Current Price

19.68$

Potential

-0.00%

Expected Cash-Flows