Acadia Realty Trust reports 5.7% NOI growth

Acadia Realty Trust (NYSE: AKR) has reported its first quarter operating results for the period ending March 31, 2024. The company's GAAP net earnings per share were $0.03, and its FFO before special items stood at $0.33. The same-property NOI growth was an impressive 5.7%, driven by the street portfolio. Street rent spreads came in at 37%, with an overall core portfolio of 16%.

Net income for the quarter was $3.0 million, or $0.03 per share, a decrease from the prior year's figure of $13.1 million, or $0.14 per share. NAREIT FFO for the quarter was $31.0 million, or $0.28 per share, down from $40.7 million, or $0.40 per share in the same period last year. FFO before special items for the quarter was $37.0 million, or $0.33 per share, compared to $40.7 million, or $0.40 per share in the first quarter of 2023.

The core portfolio's leased and occupied rates were at 94.4% and 91.8%, respectively, compared to 95.0% leased and 93.0% occupied in the previous quarter. Additionally, the core signed not open pipeline (excluding redevelopments) increased to $7.7 million of annual base rents at the end of Q1 2024, up from $7.0 million at the end of Q4 2023, representing approximately 5.5% of in-place rents.

Acadia also improved its core net debt-to-EBITDA by 0.6x during the quarter, and completed an extension and expansion of its unsecured credit facility at existing credit spreads post quarter-end.

The company issued approximately 7 million shares for net proceeds of approximately $115 million. Acadia is under contract to sell one of its core suburban assets for a gross purchase price of approximately $50 million to an institutional investor and has one asset under agreement for purchase that it intends to fund through its institutional relationships.

Overall, the company reaffirmed its 2024 guidance for FFO before special items and is well-positioned for above-trend multi-year internal growth.

As a result of these announcements, the company's shares have moved 1.6% on the market, and are now trading at a price of $17.6. For more information, read the company's full 8-K submission here.

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