Third quarter 2026
Filed Nov 2, 2026Acadia Realty Trust Reports Third Quarter 2026 Operating Results
Third-quarter same-property NOI grew 10.2%, NAREIT FFO increased to $44.5 million and FFO As Adjusted increased to $45.2 million, while GAAP results moved to a $0.03 per-share loss, principally reflecting an $11.7 million non-cash impairment charge. The Company maintained NAREIT FFO and FFO As Adjusted guidance but reduced net earnings per share guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $94.98M | – | – |
| Rental revenues, three months ended September 30, 2026GAAP | $90.39M | – | – |
| Other revenues, three months ended September 30, 2026GAAP | $4.59M | – | – |
| Total expenses, three months ended September 30, 2026GAAP | $85.52M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $35.57M | – | – |
| General and administrative expense, three months ended September 30, 2026GAAP | $11.91M | – | – |
| Real estate taxes, three months ended September 30, 2026GAAP | $9.77M | – | – |
| Property operating expense, three months ended September 30, 2026GAAP | $16.61M | – | – |
| Impairment charges, three months ended September 30, 2026GAAP | $11.66M | – | – |
| Gain on disposition of properties, three months ended September 30, 2026GAAP | $761K | – | – |
| Operating income, three months ended September 30, 2026GAAP | $10.22M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$19.93M | – | – |
| Net loss attributable to Acadia shareholders, three months ended September 30, 2026GAAP | −$3.59M | – | – |
| Net loss per share diluted, three months ended September 30, 2026GAAP | $(0.03) | – | – |
| NAREIT FFO, three months ended September 30, 2026non-GAAP | $44.5 million, or $0.30 per share | – | – |
| FFO As Adjusted, three months ended September 30, 2026non-GAAP | $45.2 million, or $0.31 per share | – | – |
| REIT Portfolio NOI, three months ended September 30, 2026non-GAAP | $46.57M | – | – |
| Same-Property NOI, three months ended September 30, 2026non-GAAP | $41.72M | – | 10.2% |
| Same-Property Revenues, three months ended September 30, 2026non-GAAP | $56.19M | – | – |
| Same-Property Operating Expenses, three months ended September 30, 2026non-GAAP | −$14.47M | – | – |
| Economic occupancy as of September 30, 2026other | 94.2% | decreased 20 basis points | – |
| Leased occupancy as of September 30, 2026other | 95.5% | decreased 20 basis points | – |
| Conforming GAAP leasing spreads on new leases, three months ended September 30, 2026GAAP | 98% | – | – |
| Cash leasing spreads on new leases, three months ended September 30, 2026other | 62% | – | – |
| Total signed-not-open pipeline annualized base rent as of September 30, 2026other | $21.8M | 32% | – |
| Total revenues, nine months ended September 30, 2026GAAP | $293.4M | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $191.4M | – | – |
| Net income attributable to Acadia shareholders, nine months ended September 30, 2026GAAP | $37.92M | – | – |
| Net earnings per share diluted, nine months ended September 30, 2026GAAP | $0.23 | – | – |
| NAREIT FFO, nine months ended September 30, 2026non-GAAP | $124,559 thousand, or $0.87 per Common Share and Common OP Unit | – | – |
| FFO As Adjusted, nine months ended September 30, 2026non-GAAP | $131,723 thousand, or $0.92 per Common Share and Common OP Unit | – | – |
| Same-Property NOI, nine months ended September 30, 2026non-GAAP | $120.1M | – | 8.3% |
Full-year 2026 outlook
- NoteNet earnings per share attributable to Acadia: $0.29-$0.30
- NoteNAREIT FFO per share attributable to Common Shareholders and Common OP Unit Holders: $1.19-$1.21
- NoteFFO As Adjusted per share attributable to Common Shareholders and Common OP Unit Holders: $1.24-$1.26
- NoteSame-property NOI growth: 7.5% to 8.5%
- NoteDepreciation of real estate and amortization of leasing costs: 1.00-1.01
- NoteGain on disposition of real estate properties: (0.25)
- NoteImpairment charges: 0.08
- NoteAdjustment of redeemable noncontrolling interest to estimated redemption value: 0.04
- NoteNoncontrolling interest in Operating Partnership: 0.03
- NoteTransaction and other expenses: 0.05
What drove it
- Third-quarter same-property NOI growth of 10.2% was primarily driven by 15.2% growth from the street retail portfolio.
- The Company completed approximately $152 million of accretive street retail acquisitions within its REIT Portfolio during the quarter.
- The signed-not-open pipeline added approximately $8.4 million of new leasing, including approximately $6.2 million from new street and urban leases.
- Conforming GAAP and cash leasing spreads on new leases were 98% and 62%, respectively.
- Henderson Avenue leases executed or in advanced stages of negotiation reached approximately 90% of retail GLA, with a projected yield on cost of 8% to 10%.
Concerns
- The quarter recorded a non-cash impairment charge of $11.7 million, or $0.08 per share, related to two properties that are in process of being sold.
- Economic occupancy and leased occupancy each decreased 20 basis points from June 30, 2026, to 94.2% and 95.5%, respectively.
- Net earnings per share guidance was revised to $0.29-$0.30 from $0.40-$0.41.
- Tenant openings at Henderson Avenue are expected to begin in 2027, with NOI contributions expected to be weighted toward the second half of 2027.
What to watch
- Lease-up of approximately 16,600 square feet of acquired street-retail vacancy at 44 Main Street in Westport and 69-73 Greene Street in Soho.
- Conversion of the $21.8 million signed-not-open pipeline into commencing annualized base rent.
- Execution and timing of Henderson Avenue tenant openings throughout 2027 and realization of the projected 8% to 10% yield on cost.
- Deployment of approximately $351 million of expected proceeds from unsettled forward equity contracts toward Henderson Avenue and acquisition opportunities.
- Closing of approximately $110 million of dispositions under contract for sale, including $22 million at the Company's share.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $37,984 thousand
- Restricted cash as of September 30, 2026: $11,322 thousand
- Mortgage and other notes payable, net, as of September 30, 2026: $479,407 thousand
- Unsecured notes payable, net, as of September 30, 2026: $1,107,513 thousand
- Unsecured line of credit as of September 30, 2026: $232,323 thousand
- Pro-rata Net Debt to Annualized Adjusted EBITDA as of September 30, 2026: 5.8x
- Net Debt to Transaction-Adjusted Annualized EBITDA: 5.6x
- The Company settled approximately 0.8 million shares of previously issued forward equity contracts for cash proceeds of approximately $15.6 million.
- As of September 30, 2026, unsettled forward equity contracts were to sell 17.0 million shares for aggregate net proceeds of approximately $351 million.
- REIT Portfolio debt maturing, as extended, was 2.0%, 2.2%, 6.2% and 6.8% in 2026, 2027, 2028 and 2029, respectively.
Analysis
Acadia reported strong property-level operating momentum in the third quarter. Same-property NOI increased 10.2%, led by 15.2% growth in street retail, while same-property NOI for the nine months ended September 30, 2026 increased 8.3%. REIT Portfolio NOI was $46,571 thousand in the quarter, compared with $39,216 thousand in the prior-year quarter. Leasing spreads were also substantial, with conforming GAAP and cash spreads on new leases of 98% and 62%, respectively.
Headline GAAP earnings were weaker because of property-sale-related impairment. Acadia reported a net loss attributable to shareholders of $(3,594) thousand, or $(0.03) per diluted share, compared with net income attributable to shareholders of $5,618 thousand, or $0.03 per diluted share, in the third quarter of 2025. Management attributed the decrease primarily to an $11.7 million non-cash impairment charge, or $0.08 per share, related to two properties in process of being sold. In contrast, NAREIT FFO rose to $44.5 million, or $0.30 per share, and FFO As Adjusted rose to $45.2 million, or $0.31 per share.
Leasing and acquisitions expanded the operating platform. The signed-not-open pipeline increased 32% to $21.8 million from $16.5 million at June 30, 2026, following approximately $8.4 million of new leasing. Acadia completed approximately $152 million of street retail acquisitions in the REIT Portfolio during the quarter, contributing to year-to-date acquisition volume of $775 million, including $351 million in the REIT Portfolio. Economic occupancy and leased occupancy declined to 94.2% and 95.5%, respectively, due entirely to acquired vacancy, according to the Company.
Henderson Avenue remains a significant future growth project. The development had approximately 90% of retail GLA executed or in advanced stages of negotiation, total estimated investment of approximately $210 million to $235 million, and approximately $144 million invested as of September 30, 2026. Tenant openings are expected throughout 2027, and NOI contributions are expected to be weighted toward the second half of 2027. The Company maintained its NAREIT FFO and FFO As Adjusted per-share guidance at $1.19-$1.21 and $1.24-$1.26, respectively, while revising net earnings per share guidance to $0.29-$0.30 from $0.40-$0.41.
The balance sheet includes $37,984 thousand of cash and cash equivalents, $479,407 thousand of mortgage and other notes payable, $1,107,513 thousand of unsecured notes payable, and $232,323 thousand outstanding on the unsecured line of credit. Pro-rata Net Debt to Annualized Adjusted EBITDA was 5.8x, inclusive of the Company’s share of Investment Management debt and net of estimated proceeds from unsettled forward equity contracts. Those contracts represented 17.0 million shares and aggregate net proceeds of approximately $351 million expected to fund Henderson Avenue and acquisition opportunities.
Management, verbatim
We delivered third-quarter same-property NOI growth that ranks among the strongest in our history, led once again by growth of more than 15% in our street retail portfolio.
Kenneth F. Bernstein, President and CEO
Not in the filing
stated, not guessed- Operating cash flow was not reported in the provided filing text.
- Free cash flow was not reported in the provided filing text.
- Gross margin was not reported in the provided filing text.
- Segment revenue was not reported for the REIT Portfolio or Investment Management platform.
- Prior-quarter total revenue, earnings, FFO, NOI and cash-flow comparisons were not reported.
- A previous earnings release outlook section was not provided; therefore, no actual-versus-prior-guidance comparisons are included.
- Share repurchases and dividend declarations or payments were not reported in the provided filing text.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.