Acadia Realty Trust Reports Fourth Quarter and Full Year 2025 Operating Results

RYE, N.Y.--( BUSINESS WIRE)--Acadia Realty Trust (NYSE: AKR) (“Acadia” or the “Company”) today reported operating results for the quarter and year ended December 31, 2025. All per share amounts are on a fully-diluted basis, where applicable. Acadia owns and operates a high-quality real estate portfolio of street and open-air retail properties in the nation's most dynamic retail corridors (“REIT Portfolio”), along with an investment management platform that targets opportunistic and value-add investments through its institutional co-investment vehicles (“Investment Management”).

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

“As we close the year, our fourth quarter results reflect continued momentum across our differentiated dual platform business model. We are encouraged by the robust tenant demand for our street retail portfolio, enabling us to deliver REIT Portfolio same-property NOI growth in excess of 6% for the quarter. Complementing our strong internal growth, last year and year-to-date, we completed nearly $1 billion of accretive acquisitions, increasing our concentration in key street retail corridors and further scaling our Investment Management platform. With strong demand for street retail space and ample balance sheet capacity, we remain well positioned to deliver 5% earnings growth over a multi-year horizon.”

Financial Results

A complete reconciliation, in dollars and per share amounts, of (i) net earnings attributable to Acadia to Funds From Operations (“FFO”) (as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and Before Special Items) attributable to common shareholders and Common OP Unit holders and (ii) operating income to net operating income (“NOI”) is included in the financial tables of this release. The amounts discussed below are net of noncontrolling interests (except for the Common OP Unit holders) and all per share amounts are on a fully-diluted basis.

Financial Results

2025–4Q

2024–4Q

Net earnings per share attributable to Acadia

$0.04

$0.07

Depreciation of real estate and amortization of leasing costs (net of noncontrolling interest share other than Common OP Units)

0.24

0.22

Impairment charges (net of noncontrolling interest share other than Common OP Units)

—

0.01

Adjustment of redeemable noncontrolling interest to estimated redemption value

0.02

—

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

$0.30

Net unrealized holding gain

—

(0.01)

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

$0.30

$0.29

Transaction and other expenses 1

0.01

—

Realized gains on marketable securities 2

0.03

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

$0.34

$0.32

Net Income

NAREIT FFO

FFO Before Special Items

REIT Portfolio Same-Property NOI

REIT Portfolio Occupancy and Leasing Update

Signed Not Yet Opened Update

The following summarizes the activity, at the Company’s pro-rata share, of ABR of its signed not opened pipeline during the fourth quarter (amounts in millions):

Balance at September 30, 2025

Commencing ABR

New Leases

Balance at December 31, 2025

REIT Portfolio (Same-property)

4.4

(1.5

)

1.5

4.4

REIT Portfolio (Redevelopment/Prestabilized)

6.5

(3.1

)

0.1

3.5

Investment Management

1.0

(0.4

)

0.4

1.0

Total

11.9

(5.0

)

2.0

8.9

As highlighted above, of the $5.0 million of pro‑rata ABR that commenced in the fourth quarter, approximately $3.1 million, primarily driven by the December 2025 opening of Mango at 664 North Michigan in Chicago, Illinois, originated from REIT Portfolio Redevelopment/Prestabilized assets. Because these assets were not included in REIT Portfolio occupancy as of September 30, 2025, the $3.1 million of ABR that commenced in the fourth quarter did not significantly contribute to the reported occupancy at December 31, 2025. Likewise, this amount was excluded from the Same‑Property NOI pool for both the fourth quarter and the full year of 2025.

Transactional Activity

Subsequent to December 31, 2025, the Company completed approximately $445 million in accretive REIT Portfolio and Investment Management acquisitions as further described below.

REIT Portfolio

Investment Management Platform Acquisition

Investment Management Dispositions

Balance Sheet

Equity Activity:

Pro-Rata REIT Portfolio and Investment Management Debt-to-EBITDA (as adjusted):

No Significant REIT Portfolio Debt Maturities until 2029:

Guidance

As previously disclosed, beginning in 2026, the Company will report a new supplemental measure, FFO As Adjusted. FFO As Adjusted will be calculated by adjusting NAREIT FFO to exclude gains and promotes from its Investment Management business along with other items, including non-comparable revenues, expenses, gains, and losses, that the Company believes are not reflective of ongoing core operating results.

The following initial guidance is based upon Acadia’s current view of market conditions and assumptions for the year ended December 31, 2026.

2026 Guidance

2025 Actuals

Low

High

Net earnings per share attributable to Acadia

$0.24

$0.26

$0.10

Depreciation of real estate and amortization of leasing costs (net of noncontrolling interest share other than Common OP Units)

0.95

0.97

0.94

Gain on disposition on real estate properties (net of noncontrolling interest share other than Common OP Units)

(0.04)

(0.02)

Impairment charges (net of noncontrolling interest share other than Common OP Units)

—

0.07

Loss on change in control

—

0.07

Noncontrolling interest in Operating Partnership

0.03

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

$1.18

$1.22

$1.19

Adjustments to FFO:

Unrealized holding loss

—

0.01

Promote Income

—

(0.01)

Lease Settlement Income 1

—

(0.06)

Transaction and other expenses 2

0.03

0.01

Funds From Operations As Adjusted per share attributable to Common Shareholders and Common OP Unit holders 3

$1.21

$1.25

$1.14

The Company’s full year outlook is based on the following assumptions:

FFO As Adjusted for the year ended December 31, 2025 and for each quarterly period within the year were as follows (amounts in thousands except per share):

For the quarter ended

For the year ended

March 31, 2025

June 30, 2025

September 30, 2025

December 31, 2025

NAREIT FFO

44,583

38,074

38,579

41,649

162,885

Tenant lease settlement

(8,309

)

—

(8,309

)

Promote income

—

(1,216

)

—

(1,216

)

Transaction and other expenses

526

152

921

1,654

Unrealized holding (gain) loss

(1,672

)

494

2,281

(61

)

1,042

FFO As Adjusted

35,128

38,720

39,699

42,509

156,056

Share and Unit Count

129,363

138,909

138,950

139,031

136,635

FFO As Adjusted per Share and Unit

0.27

0.28

0.29

0.31

1.14

Management will conduct a conference call on Wednesday, February 11, 2026 at 11:00 AM ET to review the Company’s earnings and operating results. Participant registration and webcast information is listed below.

Live Conference Call:

Date:

Wednesday, February 11, 2026

Time:

11:00 AM ET

Participant call:

Fourth Quarter 2025 Dial-In

Participant webcast:

Fourth Quarter 2025 Webcast

Webcast Listen-only and Replay:

www.acadiarealty.com/investors under Events & Presentations

The Company uses, and intends to use, the Investors page of its website, which can be found at https://www.acadiarealty.com/investors, as a means of disclosing material nonpublic information and of complying with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations and certain portfolio updates. Additionally, the Company also uses its LinkedIn profile to communicate with its investors and the public. Accordingly, investors are encouraged to monitor the Investors page of the Company's website and its LinkedIn profile, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.

About Acadia Realty Trust

Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth. Acadia owns and operates a high-quality core real estate portfolio of street and open-air retail properties in the nation's most dynamic retail corridors (“REIT Portfolio”), along with an investment management platform that targets opportunistic and value-add investments through its institutional co-investment vehicles (“Investment Management”). For further information, please visit www.acadiarealty.com.

Safe Harbor Statement

Certain statements in this press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations are generally identifiable by the use of words, such as “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend” or “project,” or the negative thereof, or other variations thereon or comparable terminology. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the Company's actual results and financial performance to be materially different from future results and financial performance expressed or implied by such forward-looking statements, including, but not limited to: (i) macroeconomic conditions, including due to geopolitical instability and global trade disruptions, which may lead to a disruption of or lack of access to the capital markets and other sources of funding, and rising inflation; (ii) the Company’s success in implementing its business strategy and its ability to identify, underwrite, finance, consummate and integrate diversifying acquisitions and investments; (including the potential acquisitions discussed in this press release); (iii) changes in general economic conditions or economic conditions in the markets in which the Company may, from time to time, compete, including the impact of recently announced tariffs on our tenants and their customers, and their effect on the Company’s and our tenants' revenues, earnings and funding sources; (iv) increases in the Company’s borrowing costs as a result of rising inflation, changes in interest rates and other factors; (v) the Company’s ability to pay down, refinance, restructure or extend its indebtedness as it becomes due; (vi) the Company’s investments in joint ventures and unconsolidated entities, including its lack of sole decision-making authority and its reliance on its joint venture partners’ financial condition; (vii) the Company’s ability to obtain the financial results expected from its development and redevelopment projects; (viii) the ability and willingness of the Company's tenants to renew their leases with the Company upon expiration, the Company’s ability to re-lease its properties on the same or better terms in the event of nonrenewal or in the event the Company exercises its right to replace an existing tenant, and obligations the Company may incur in connection with the replacement of an existing tenant; (ix) the Company’s potential liability for environmental matters; (x) damage to the Company’s properties from catastrophic weather and other natural events, and the physical effects of climate change; (xi) the economic, political and social impact of, and uncertainty surrounding, any public health crisis; (xii) uninsured losses; (xiii) the Company’s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax and other considerations; (xiv) information technology (“IT”) security breaches, including increased cybersecurity risks relating to the use of remote technology and artificial intelligence (“AI”); (xv) risks associated with our use of AI tools, which could result in reputational harm, and legal or regulatory liability; (xvi) the loss of key executives; and (xvii) the accuracy of the Company’s methodologies and estimates regarding corporate responsibility metrics, goals and targets, tenant willingness and ability to collaborate towards reporting such metrics and meeting such goals and targets, and the impact of governmental regulation on our corporate responsibility efforts.

The factors described above are not exhaustive and additional factors could adversely affect the Company’s future results and financial performance, including the risk factors discussed under the section captioned “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and other periodic or current reports the Company files with the SEC. Any forward-looking statements in this press release speak only as of the date hereof. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any changes in the Company’s expectations with regard thereto or changes in the events, conditions or circumstances on which such forward-looking statements are based.

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

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Revenues

Rental

102,485

91,579

402,136

349,530

Other

2,280

1,755

8,621

10,159

Total revenues

104,765

93,334

410,757

359,689

Expenses

Depreciation and amortization

39,864

35,189

157,457

138,910

General and administrative

11,611

10,397

45,664

40,559

Real estate taxes

13,636

12,535

52,088

46,049

Property operating

18,996

16,772

71,427

66,000

Impairment charges

—

1,678

37,210

1,678

Total expenses

84,107

76,571

363,846

293,196

Gain (loss) on disposition of properties

—

(393

2,515

(834

Operating income

20,658

16,370

49,426

65,659

Equity in earnings (losses) of unconsolidated affiliates

1,885

(774

)

(7,713

)

15,178

Interest income

5,142

6,575

23,717

25,085

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

904

(96

)

(5,014

)

Interest expense

(24,156

)

(21,904

)

(95,311

)

(92,557

)

Loss on change in control

—

(9,622

)

—

Income (loss) from continuing operations before income taxes

3,626

1,171

(39,599

)

8,351

Income tax provision

(83

)

(11

)

(412

)

(212

)

Net income (loss)

3,543

1,160

(40,011

)

8,139

Net loss attributable to redeemable noncontrolling interests

602

1,397

5,562

7,915

Net loss attributable to noncontrolling interests

3,562

5,967

51,345

5,596

Net income attributable to Acadia shareholders

7,707

8,524

16,896

21,650

Less: earnings attributable to unvested participating securities

(340

)

(306

)

(1,357

)

(1,189

)

Less: adjustment of redeemable noncontrolling interests to estimated redemption value

(2,428

)

—

(3,316

)

—

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

4,939

8,218

12,223

20,461

Weighted average shares for basic earnings per share

131,035

118,719

128,625

108,227

Weighted average shares for diluted earnings per share

131,074

118,750

128,663

108,258

Net earnings per share - basic (2)

0.04

0.07

0.10

0.19

Net earnings per share - diluted (2)

0.04

0.07

0.10

0.19

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

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Net income attributable to Acadia

7,707

8,524

16,896

21,650

Depreciation of real estate and amortization of leasing costs (net of noncontrolling interests' share other than Common OP Units)

33,542

27,665

128,356

107,450

Impairment charges (net of noncontrolling interests' share other than Common OP Units)

—

750

9,572

750

Loss (gain) on disposition of properties (net of noncontrolling interests' share other than Common OP Units)

—

395

(2,614

)

(1,086

)

Loss on change in control

—

9,622

—

Income attributable to Common OP Unit holders

333

363

785

1,067

Distributions - Preferred OP Units

268

341

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

41,649

37,764

162,885

130,172

Transaction and other costs

921

—

1,654

—

Unrealized holding (gain) loss

(61

)

(949

)

1,042

4,616

Realized gain

4,693

3,685

14,454

14,188

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

47,202

40,500

180,035

148,976

Funds From Operations per Share - Diluted

Basic weighted-average shares outstanding, GAAP earnings

131,074

118,719

128,663

108,227

Weighted-average OP Units outstanding

7,701

7,280

7,716

7,495

Assumed conversion of Preferred OP Units to Common Shares

256

356

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

—

Weighted average number of Common Shares and Common OP Units

139,031

126,255

136,635

116,078

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

0.30

1.19

1.12

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

0.34

0.32

1.32

1.28

Acadia Realty Trust and Subsidiaries

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

(Unaudited, Dollars in thousands)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Consolidated operating income

20,658

16,370

49,426

65,659

Add back:

General and administrative

11,611

10,397

45,664

40,559

Depreciation and amortization

39,864

35,189

157,457

138,910

Impairment charges

—

1,678

37,210

1,678

Loss (gain) on disposition of properties

—

393

(2,515

)

834

Less:

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

(4,694

)

(4,760

)

(15,611

)

(17,735

)

Termination income

—

(8,366

)

—

Consolidated NOI

67,439

59,267

263,265

229,905

Redeemable noncontrolling interest in consolidated NOI

(1,831

)

(1,994

)

(6,829

)

(6,127

)

Noncontrolling interest in consolidated NOI

(17,704

)

(17,226

)

(74,452

)

(69,540

)

Less:

Operating Partnership's interest in Investment Management NOI included above

(8,459

)

(7,083

)

(31,170

)

(25,496

)

Add back:

Operating Partnership's share of unconsolidated joint ventures NOI (4)

3,604

3,027

6,810

11,531

REIT Portfolio NOI

43,049

35,991

157,624

140,273

Reconciliation of Same-Property NOI

(Unaudited, Dollars in thousands)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

REIT Portfolio NOI

43,049

35,991

157,624

140,273

Less properties excluded from Same-Property NOI

(7,109

)

(2,195

)

(18,486

)

(8,629

)

Same-Property NOI

35,940

33,796

139,138

131,644

Percent change from prior year period

6.3

5.7

Components of Same-Property NOI:

Same-Property Revenues

50,241

48,129

193,257

186,932

Same-Property Operating Expenses

(14,301

)

(14,333

)

(54,119

)

(55,288

)

Same-Property NOI

35,940

33,796

139,138

131,644

Acadia Realty Trust and Subsidiaries

Condensed Consolidated Balance Sheets (1)

(Unaudited, Dollars in thousands, except shares)

As of:

December 31, 2025

December 31, 2024

Assets

Investments in real estate, at cost

Buildings and improvements

3,421,366

3,174,250

Tenant improvements

339,414

304,645

Land

1,147,236

906,031

Construction in progress

32,969

23,704

Right-of-use assets - finance leases

61,366

Total

5,002,351

4,469,996

Less: Accumulated depreciation and amortization

(1,018,597

)

(926,022

)

Operating real estate, net

3,983,754

3,543,974

Real estate under development

167,051

129,619

Net investments in real estate

4,150,805

3,673,593

Notes receivable, net ($1,638 and $2,004 of allowance for credit losses as of December 31, 2025 and December 31, 2024, respectively)

154,892

126,584

Investments in and advances to unconsolidated affiliates

161,955

209,232

Other assets, net

223,980

223,767

Right-of-use assets - operating leases, net

23,594

25,531

Cash and cash equivalents

38,818

16,806

Restricted cash

18,081

22,897

Marketable securities

—

14,771

Rents receivable, net

65,027

58,022

Total assets

4,837,152

4,371,203

Liabilities:

Mortgage and other notes payable, net

893,944

953,700

Unsecured notes payable, net

879,462

569,566

Unsecured line of credit

89,500

14,000

Accounts payable and other liabilities

273,479

232,726

Lease liabilities - operating leases

25,972

27,920

Dividends and distributions payable

28,526

24,505

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

16,838

16,514

Total liabilities

2,207,721

1,838,931

Commitments and contingencies

Redeemable noncontrolling interests

9,113

30,583

Equity:

Acadia Shareholders' Equity

Common shares, $0.001 par value per share, authorized 200,000,000 shares, issued and outstanding 131,036,560 and 119,657,594 shares as of December 31, 2025 and December 31, 2024, respectively

131

120

Additional paid-in capital

2,710,651

2,436,285

Accumulated other comprehensive income

15,585

38,650

Distributions in excess of accumulated earnings

(500,720

)

(409,383

)

Total Acadia shareholders’ equity

2,225,647

2,065,672

Noncontrolling interests

394,671

436,017

Total equity

2,620,318

2,501,689

Total liabilities, redeemable noncontrolling interests, and equity

4,837,152

4,371,203

Acadia Realty Trust and Subsidiaries

Notes to Financial Highlights:

(1)

For additional information and analysis concerning the Company’s balance sheet and results of operations, reference is made to the Company’s quarterly supplemental disclosures for the relevant periods furnished on the Company's Current Report on Form 8-K, which is available on the SEC's website at www.sec.gov and on the Company’s website at www.acadiarealty.com.

(2)

Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common shares of the Company were exercised or converted into common shares. The effect of the conversion of units of limited partnership interest (“OP Units”) in Acadia Realty Limited Partnership, the operating partnership of the Company (the “Operating Partnership”), is not reflected in the above table; OP Units are exchangeable into common shares on a one-for-one basis. The income allocable to such OP units is allocated on the same basis and reflected as noncontrolling interests in the consolidated financial statements. As such, the assumed conversion of these OP Units would have no net impact on the determination of diluted earnings per share.

(3)

The Company considers funds from operations (“FFO”) as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and net property operating income (“NOI”) to be appropriate supplemental disclosures of operating performance for an equity REIT due to their widespread acceptance and use within the REIT and analyst communities. In addition, the Company believes that given the atypical nature of certain unusual items (as further described below), “FFO Before Special Items” is also an appropriate supplemental disclosure of operating performance. FFO, FFO Before Special Items and NOI are presented to assist investors in analyzing the performance of the Company. The Company believes they are helpful as they exclude various items included in net income (loss) that are not indicative of operating performance, such as (i) gains (losses) from sales of real estate properties; (ii) depreciation and amortization and (iii) impairment of depreciable real estate assets related to the Company’s main business and land held for the development of property. The Company believes that introducing a new supplemental measure beginning with fiscal year 2026 is useful for evaluating operating performance and comparing historical financial periods. The Company defines FFO As Adjusted as FFO adjusted for items that management believes are not reflective of ongoing core operating results, including non-comparable revenues, expenses, gains, and losses. While these adjustments may be subject to fluctuations from period to period, with both positive and negative short-term impacts, management believes that the removal of the impacts of these items enhances our understanding of the operating performance of our properties. In addition, NOI excludes interest expense and FFO Before Special Items excludes certain unusual items (as further described below). The Company’s method of calculating FFO, FFO Before Special Items, FFO As Adjusted and NOI may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. Neither FFO, FFO Before Special Items or FFO As Adjusted represent cash generated from operations as defined by generally accepted accounting principles (“GAAP”), or are indicative of cash available to fund all cash needs, including distributions. Such measures should not be considered as an alternative to net income (loss) 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 (losses) from sales of real estate properties;

ii.

depreciation and amortization;

iii.

impairment of real estate assets related to the Company’s main business and land held for the development of property for its operating portfolio;

iv.

gains and losses from change in control; and

after adjustments for unconsolidated partnerships and joint ventures.

Also consistent with NAREIT’s definition of FFO, the Company has elected to include: the impact of the unrealized holding gains (losses) incidental to its main business, including those related to its investments in Albertsons in FFO.

FFO Before Special Items begins with the NAREIT definition of FFO and adjusts FFO (or as an adjustment to the numerator within its earnings per share calculations) to take into account FFO without regard to certain unusual items including:

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

ii.

the impact of the unrealized holding gains (losses) incidental to its main business, including those related to its investment in Albertsons; and

iii.

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

FFO As Adjusted (new metric starting in 2026) begins with the NAREIT definition of FFO and adjusts FFO (or as an adjustment to the numerator within its earnings per share calculations) to take into account FFO without regard to certain unusual items including:

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

(4)

The pro-rata share of NOI is based upon the Operating Partnership’s stated ownership percentages in each venture or Investment Management’s operating agreement and does not include the Operating Partnership's share of NOI from unconsolidated partnerships and joint ventures within Investment Management.