Acadia Realty Trust Reports Third Quarter Operating Results
Acadia Realty Trust, a prominent equity real estate investment trust, has released its operating results for the third quarter of 2025. The company, known for its high-quality portfolio of street and open-air retail properties, has shown significant growth and strategic advancements in this period.
Financial Highlights
For the third quarter of 2025, Acadia Realty Trust reported GAAP net earnings of $0.03 per share and Funds From Operations (FFO) Before Special Items of $0.33 per share. The REIT Portfolio's same-property Net Operating Income (NOI) increased by 8.2%, driven by a 13% growth in the street retail portfolio. The company also reported a 29% GAAP leasing spread and a 12% cash leasing spread on new and renewal leases.
Net income for the quarter was $4.4 million, or $0.03 per share, which includes a non-cash impairment charge of approximately $3.8 million. This compares to a net income of $8.1 million, or $0.07 per share, for the same period in 2024. NAREIT FFO for the quarter was $38.6 million, or $0.28 per share, compared to $33.0 million, or $0.28 per share, in the third quarter of 2024.
Business and Operational Highlights
The REIT Portfolio's occupancy increased by 140 basis points to 93.6% as of September 30, 2025, driven by street retail leasing. The company completed a $63 million acquisition of The Avenue at West Cobb in Marietta, Georgia, which is currently 77.3% leased. This acquisition brings the total acquisition volume year-to-date to $487 million.
Additionally, Acadia completed the disposition of a 156,000 square foot mixed-use property in Dayton, Ohio, for approximately $15 million, and two significant dispositions in Manhattan, New York, through its Fund III and Fund IV platforms.
Strategic Initiatives and Corporate Developments
During the third quarter and fourth quarter-to-date, Acadia raised approximately $212 million of equity on a forward basis to fund its acquisition pipeline and the Henderson redevelopment project in Dallas, TX. The company also reduced its pro-rata Net Debt-to-EBITDA ratio to 5.0x from 5.5x in the previous quarter.
Management's Perspective
Kenneth F. Bernstein, President and CEO of Acadia, expressed satisfaction with the company's performance, particularly highlighting the 13% same-property NOI growth from street retail assets. He emphasized the strength of leasing demand and the ongoing rebound in street retail rents across key corridors, positioning the company for continued growth into 2026 and beyond.
Future Outlook
Acadia has maintained its FFO Before Special Items and Realized Gains guidance per share at the midpoint and updated its 2025 Net earnings and NAREIT FFO per diluted share annual guidance. The revised guidance reflects a range of $0.12 to $0.14 for net earnings per share and $1.20 to $1.22 for NAREIT FFO per share.
Original SEC Filing: ACADIA REALTY TRUST [ AKR ] - 8-K - Oct. 28, 2025