ACADIA REALTY TRUST

Previous wording

Investment Management (“IM”): Through its investment management platform, the Company manages opportunistic and value-add retail real estate investments alongside institutional partners through its strategic opportunity funds (Fund II, Fund III, Fund IV, and Fund V) and select co-investment ventures. From time to time, assets previously held in the Company’s opportunity funds may be recapitalized or transitioned into new joint ventures with third-party partners as part of the portfolio lifecycle, while the Company retains an ownership interest and continues its role as operator and manager. The Company earns management fees and, in certain cases, incentive-based performance fees.

Current wording

Investment Management (“IM”): Through its Investment Management platform, the Company manages opportunistic and value-add retail real estate investments through its strategic opportunity funds (Fund II, Fund III, Fund IV, and Fund V) and select co-investment ventures. While Fund III, Fund IV and Fund V currently include institutional partner capital, Fund II is presently wholly owned by the Company and is being managed within the IM platform, with the potential for future third-party capital participation. From time to time, assets previously held in the Company’s strategic opportunity funds may be recapitalized or transitioned into new joint ventures with third-party partners as part of the portfolio lifecycle, while the Company retains an ownership interest and continues its role as operator and manager. The Company earns management fees and, in certain cases, incentive-based performance fees.

Previous wording

Includes 11 pre-stabilized properties in the REIT Portfolio.

Current wording

Includes 12 pre-stabilized properties in the REIT Portfolio.

Previous wording

SIGNIFICANT ACTIVITIES DURING 2026 AND SUBSEQUENT EVENTS

Current wording

SIGNIFICANT ACTIVITIES DURING 2026

Previous wording

During the first quarter of 2026, the Company completed a number of transactions across its REIT Portfolio and Investment Management segments reflecting continued portfolio growth and deepening of relationships with key institutional partners.

Current wording

During the six months ended June 30, 2026, the Company completed a number of transactions across its REIT Portfolio and Investment Management segments reflecting continued portfolio growth and deepening of relationships with key institutional partners.

Previous wording

Within the REIT Portfolio, the Company continued to selectively deploy capital into retail assets located in established, high-barrier markets. During the quarter, the Company completed consolidated acquisitions totaling approximately $78.7 million, including:

Current wording

Within the REIT Portfolio, the Company continued to selectively deploy capital into retail assets located in established, high-barrier markets. During six months ended June 30, 2026, the Company completed consolidated acquisitions totaling approximately $198.4 million, including:

Previous wording

In April 2026, the Company closed a $108.9 million acquisition of retail condominium units at 4-6 and 28 Newbury Street in Boston (Note 16).

Current wording

$110.2 million acquisition of retail condominium units at 4-6 and 28 Newbury Street in Boston, MA;

Previous wording

These acquisitions were integrated into the Company’s existing REIT Portfolio and are consolidated.

Current wording

These acquisitions were integrated into the Company’s existing REIT Portfolio and are consolidated (Note 2).

Previous wording

During the first quarter of 2026, the Company completed several transactions through its Investment Management segment, consisting of equity investments in unconsolidated joint ventures and recapitalizations of existing assets (Note 2, Note 4).

Current wording

During the six months ended June 30, 2026, the Company completed several transactions through its Investment Management segment, consisting of equity investments in unconsolidated joint ventures and recapitalizations of existing assets (Note 2, Note 4).

Previous wording

During the first quarter of 2026, the Company completed consolidated property dispositions within its Investment Management platform totaling approximately $104.6 million, including the sale of Landstown Commons for $102.0 million and the sale of 1964 Union Street for $2.6 million (Note 2).

Current wording

During the six months ended June 30, 2026, the Company completed consolidated property dispositions within its Investment Management platform totaling approximately $128.1 million, including the sale of Landstown Commons for $102.0 million, the sale of 1964 Union Street for $2.6 million and the sale of New Towne Center for $23.5 million (Note 2).

Previous wording

In connection with the Investment Management disposition and recapitalization activity, the Company retired approximately $269.5 million of property-level mortgage loans associated with assets sold or contributed to joint ventures. The Company also terminated related interest rate hedges in conjunction with these repayments.

Current wording

In connection with the Investment Management disposition and recapitalization activity, the Company retired approximately $334.3 million of property-level mortgage loans associated with assets sold or contributed to joint ventures. The Company also terminated related interest rate hedges in conjunction with these repayments.

Previous wording

On April 17, 2026, the Company entered into the Fourth Amended and Restated Credit Facility, which extended the maturity of our $525.0 million revolving credit facility (the size of which remained unchanged) from April 15, 2028 to April 17, 2030 (subject to two six-month extension options), increased our existing $400.0 million term loan to $512.5 million and extended its maturity from April 15, 2028 to April 17, 2031, and provided for a new $137.5 million term loan maturing April 17, 2031. The existing $250.0 million term loan maturing May 29, 2030 remained unchanged. The Fourth Amended and Restated Credit Facility also includes an accordion feature permitting the Operating Partnership, at its option and subject to customary conditions, to increase total capacity to up to $2.0 billion. We believe the refinancing extended our weighted average debt maturity and enhanced our liquidity position.

Current wording

On April 17, 2026, we entered into the Fourth Amended and Restated Credit Facility, which extended the maturity of our $525.0 million revolving credit facility (the size of which remained unchanged) from April 15, 2028 to April 17, 2030 (subject to two six-month extension options), increased our existing $400.0 million term loan to $512.5 million and extended its maturity from April 15, 2028 to April 17, 2031, and provided for a new $137.5 million term loan maturing April 17, 2031. The existing $250.0 million term loan maturing May 29, 2030 remained unchanged. The Fourth Amended and Restated Credit Facility also includes an accordion feature permitting the Operating Partnership, at its option and subject to customary conditions, to increase total capacity to up to $2.0 billion. We believe the refinancing extended our weighted average debt maturity and enhanced our liquidity position (Note 7).

Previous wording

In March 2026, we settled 2,445,106 outstanding forward shares under the Company’s $500.0 million “at-the-market” program (the “ATM Program”) and received proceeds of $55.9 million, which were used to reduce outstanding borrowings and fund investment activity.

Current wording

During the six months ended June 30, 2026, we settled 6,209,562 outstanding forward shares under the Company’s $500.0 million “at-the-market” program (the “ATM Program”) and received proceeds of $128.0 million. This included settlements of $55.9 million in March and $72.1 million in June. Proceeds were used to reduce outstanding borrowings and fund investment activity (Note 10).

Previous wording

Net income attributable to noncontrolling interests for Investment Management increased $119.5 million for the three months ended March 31, 2026 compared to the prior year period based on the noncontrolling interests’ share of the variances discussed above. Net income attributable to noncontrolling interests in Investment Management includes asset management fees earned by the Company of $2.0 million for the three months ended March 31, 2026 compared to $2.3 million for the prior year period.

Current wording

Net income attributable to noncontrolling interests increased $33.3 million reflecting the noncontrolling interests' share of the variances discussed above. Net income attributable to noncontrolling interests in Investment Management includes asset management fees earned by the Company of $1.7 million for the three months ended June 30, 2026, compared to $2.4 million for the prior year period.

Previous wording

The Company does not allocate general and administrative expenses and income taxes to its reportable segments. These unallocated amounts are depicted in the table above under the headings labeled “Total.” General and administrative expenses increased $3.7 million for the three months ended March 31, 2026 compared to the prior year period primarily due to higher compensation expenses, legal expenses, and other transaction costs in 2026. The increase in expense for the three months ended March 31, 2026 includes accelerated compensation cost related to a modification of vesting provisions in connection with a change in expected service period.

Current wording

The Company does not allocate general and administrative expenses and income taxes to its reportable segments. These unallocated amounts are depicted in the table above under the headings labeled “Total.”

Previous wording

Net income attributable to noncontrolling interests for our REIT Portfolio increased $1.4 million for the three months ended March 31, 2026 compared to the prior year period based on the noncontrolling interests’ share of the variances discussed above.

Current wording

Net income attributable to Acadia shareholders for the REIT Portfolio increased $1.4 million compared to the prior year period.

Previous wording

Rental revenues for our REIT Portfolio decreased $1.2 million for the three months ended March 31, 2026 compared to the prior year period, primarily reflecting $8.4 million of non-recurring rental and termination income recognized in 2025 from Whole Foods at City Center in San Francisco, CA, partially offset by (i) $4.8 million from REIT acquisitions completed in 2025 and 2026 and (ii) $1.7 million related to the acquisition of an additional interest in, and consolidation of, the Renaissance Portfolio in 2025.

Current wording

Rental revenue increased $7.1 million, primarily reflecting $7.6 million from acquisitions completed during 2025 and 2026, $6.0 million from tenant lease-up activity, and $2.1 million from the 2025 consolidation of the Renaissance Portfolio, partially offset by the absence of $8.4 million of non-recurring rental and termination income recognized in the prior year period from Whole Foods at City Center.

Previous wording

Loss on change in control of $9.6 million recognized in the prior year period resulted from the remeasurement to fair value of the Company’s previously held equity method investment upon acquiring an additional 48% controlling interest in the Renaissance Portfolio in 2025 (Note 2).

Current wording

Results also benefited from the absence of a $9.6 million loss on change in control recognized in the prior year period upon the consolidation of the Renaissance Portfolio.

Previous wording

Gain on disposition of properties of $142.1 million recognized in 2026 was related to the Fund V recapitalization and the dispositions of Landstown Commons and Avenue at West Cobb.

Current wording

Gain on disposition of properties increased $146.5 million primarily due to the Fund V recapitalization and the dispositions of Landstown Commons, New Towne Center and Avenue at West Cobb.

Previous wording

In order to qualify as a REIT for federal income tax purposes, we must distribute at least 90% of our taxable income to our shareholders. During the three months ended March 31, 2026, we paid dividends and distributions on our Common Shares and preferred units of limited partnership interest (“Preferred OP Units”) totaling $28.4 million.

Current wording

In order to qualify as a REIT for federal income tax purposes, we must distribute at least 90% of our taxable income to our shareholders. During the six months ended June 30, 2026, we paid dividends and distributions on our Common Shares and preferred units of limited partnership interest (“Preferred OP Units”) totaling $56.8 million.

Previous wording

As previously discussed, during the three months ended March 31, 2026, we deployed approximately $181.3 million in cash outlays related to acquisitions within our REIT Portfolio and equity investments and recapitalizations completed through our Investment Management platform.

Current wording

As previously discussed, during the six months ended June 30, 2026, we deployed approximately $252.9 million in cash outlays related to acquisitions within our REIT Portfolio and equity investments and recapitalizations completed through our Investment Management platform.

Previous wording

During the three months ended March 31, 2026, we provided advances under preferred equity investments aggregating to $69.2 million (Note 4).

Current wording

During the six months ended June 30, 2026, we provided advances under preferred equity investments aggregating to $69.3 million (Note 4).

Previous wording

As of March 31, 2026, our share of the remaining capital commitments to the Funds aggregated $11.5 million as follows:

Current wording

As of June 30, 2026, our share of the remaining capital commitments to the Funds aggregated $11.0 million as follows:

Previous wording

$5.5 million to Fund IV – Fund IV was launched in May 2012 with total committed capital of $530.0 million, of which our original share was $122.5 million.

Current wording

$5.0 million to Fund IV – Fund IV was launched in May 2012 with total committed capital of $530.0 million, of which our original share was $122.5 million.

Previous wording

Additionally, the Company has committed to fund tenant improvements under executed leases totaling approximately $49.8 million and $44.1 million, as of March 31, 2026 and December 31, 2025, respectively. The Company’s share of these obligations is approximately $37.7 million and $37.1 million, respectively (Note 9).

Current wording

Additionally, the Company has committed to fund tenant improvements under executed leases totaling approximately $63.3 million and $44.1 million, as of June 30, 2026 and December 31, 2025, respectively. The Company’s share of these obligations is approximately $46.6 million and $37.1 million, respectively (Note 9).

Previous wording

During the three months ended March 31, 2026, capitalized costs associated with development activities totaled $11.0 million (Note 2). As of March 31, 2026, we had a total of 20 consolidated projects under development or redevelopment, for which the estimated total cost to complete these projects through 2028 was $91.3 million to $122.2 million, respectively. These estimates exclude assets for which redevelopment or development plans are still being evaluated and for which costs are not yet determinable.

Current wording

During the six months ended June 30, 2026, capitalized costs associated with development activities totaled $27.2 million (Note 2). As of June 30, 2026, we estimated total cost to complete development and redevelopment projects through 2028 was approximately $90.7 million to $128.4 million, respectively. These estimates exclude assets for which redevelopment or development plans are still being evaluated and for which costs are not yet determinable.

Previous wording

As of March 31, 2026, our consolidated indebtedness aggregated $1,604.3 million, excluding $0.7 million of unamortized premium and $8.7 million of net unamortized loan costs, and was secured by 37 properties and related tenant leases. Maturities on our outstanding indebtedness ranged from May 1, 2026 to April 15, 2035, excluding available extension options.

Current wording

As of June 30, 2026, our consolidated indebtedness aggregated $1,652.3 million, excluding $0.5 million of unamortized premium and $15.8 million of net unamortized loan costs, and was secured by 35 properties and related tenant leases. Maturities on our outstanding indebtedness ranged from November 6, 2026 to April 15, 2035, excluding available extension options.

Previous wording

Taking into consideration $1,054.4 million of notional principal under variable-to-fixed interest rate swap agreements currently in effect, $1,305.5 million, or 81.4%, of the Company’s consolidated debt was fixed at a weighted-average interest rate of 4.67%, and $298.8 million, or 18.6%, was floating at a weighted-average interest rate of 5.73% as of March 31, 2026. Variable-rate debt included $32.2 million subject to interest rate cap agreements.

Current wording

Taking into consideration $1,034.2 million of notional principal under variable-to-fixed interest rate swap agreements currently in effect, $1,284.6 million, or 77.7%, of the Company’s consolidated debt was fixed at a weighted-average interest rate of 4.52%, and $367.7 million, or 22.3%, was floating at a weighted-average interest rate of 5.13% as of June 30, 2026. Variable-rate debt included $32.2 million subject to interest rate cap agreements.

Previous wording

Without regard to available extension options, as of March 31, 2026, we had (i) $233.4 million of consolidated debt maturing in 2026 at a weighted-average interest rate of 6.11%, (ii) $2.5 million of scheduled principal amortization due during the remainder of 2026, and (iii) $46.7 million representing the Company’s pro-rata share of scheduled principal payments and maturities on unconsolidated debt during 2026. In addition, $281.4 million of consolidated debt and $48.5 million representing the Company’s pro-rata share of unconsolidated debt will mature by March 31, 2027.

Current wording

Without regard to available extension options, as of June 30, 2026, we had (i) $159.9 million of consolidated debt maturing in 2026 at a weighted-average interest rate of 5.88%, (ii) $1.9 million of scheduled principal amortization due during the remainder of 2026, and (iii) $31.5 million representing the Company’s pro-rata share of scheduled principal payments and maturities on unconsolidated debt during 2026. In addition, $160.3 million of consolidated debt and $44.8 million representing the Company’s pro-rata share of unconsolidated debt will mature by March 31, 2027.

Previous wording

The Company has extension options on consolidated debt aggregating $134.2 million maturing in 2026 and $96.3 million maturing in 2027; however, there can be no assurance that the Company will be able to successfully execute any or all of its available extension options. With respect to the debt maturing in the remainder of 2026, we are actively pursuing refinancing the remaining obligations, though there can be no assurance that we can refinance such obligations on favorable terms or at all. For the remaining indebtedness, we may not have sufficient cash on hand to repay such obligations, and, therefore, we expect to refinance at least a portion of this indebtedness or select other alternatives based on market conditions as these loans mature; however, there can be no assurance that we will be able to obtain financing on acceptable terms or at all.

Current wording

The Company has extension options on consolidated debt aggregating $160.3 million maturing in 2026 and $48.5 million maturing in 2027; however, there can be no assurance that the Company will be able to successfully execute any or all of its available extension options. With respect to the debt maturing in the remainder of 2026, we are actively pursuing refinancing the remaining obligations, though there can be no assurance that we can refinance such obligations on favorable terms or at all. For the remaining indebtedness, we may not have sufficient cash on hand to repay such obligations, and, therefore, we expect to refinance at least a portion of this indebtedness or select other alternatives based on market conditions as these loans mature; however, there can be no assurance that we will be able to obtain financing on acceptable terms or at all.

Previous wording

We maintain a share repurchase program under which $122.5 million remains available as of March 31, 2026 (Note 10). We did not repurchase any shares under this program during the three months ended March 31, 2026.

Current wording

We maintain a share repurchase program under which $122.5 million remains available to repurchase as of June 30, 2026 (Note 10). We did not repurchase any Common Shares under this program during the six months ended June 30, 2026.

Previous wording

Our cash on hand in our consolidated subsidiaries as of March 31, 2026 totaled $31.4 million. Our remaining sources of liquidity are described further below. Depending upon the availability and cost of external capital, we believe our sources of capital are sufficient to meet our liquidity needs. Our historical cash flow uses are reflected in our Condensed Consolidated Statements of Cash Flows and are discussed in further detail below.

Current wording

Our cash on hand in our consolidated subsidiaries as of June 30, 2026 totaled $33.0 million. Our remaining sources of liquidity are described further below. Depending upon the availability and cost of external capital, we believe our sources of capital are sufficient to meet our liquidity needs. Our historical cash flow uses are reflected in our Condensed Consolidated Statements of Cash Flows and are discussed in further detail below.

Previous wording

As of March 31, 2026, we physically settled 2,445,106 forward shares under the ATM Program in exchange for aggregate net proceeds of $55.9 million, which were used to reduce outstanding borrowings and fund investment activity. As of March 31, 2026, we had unsettled forward equity contracts to sell 12,293,731 shares for estimated aggregate net cash proceeds of $239.2 million. We also had $199.1 million of remaining availability for future share issuance under the ATM program.

Current wording

During the six months ended June 30, 2026, we physically settled 6,209,562 forward shares under the ATM Program in exchange for aggregate net proceeds of $128.0 million, which were used to reduce outstanding borrowings and fund investment activity. As of June 30, 2026, we had unsettled forward equity contracts to sell 17,771,271 shares (including 9,242,996 Common Shares sold in an underwritten public offering in June 2026 and related underwriters’ option exercise) for estimated aggregate net cash proceeds of $368.8 million. We also had $199.1 million of remaining availability for future share issuance under the ATM Program (Note 10).

Previous wording

As of March 31, 2026, unfunded capital commitments from noncontrolling interests within Funds II, III, IV and V were zero, $0.6 million, $18.5 million and $22.9 million, respectively.

Current wording

As of June 30, 2026, unfunded capital commitments from noncontrolling interests within Funds III, IV and V were $0.6 million, $16.7 million and $22.9 million, respectively. We have no remaining commitments from Fund II (Note 1).

Previous wording

As of March 31, 2026, we had $433.5 million of capacity under existing REIT Portfolio debt facilities. In addition, our REIT Portfolio and Investment Management platform included 146 unleveraged consolidated properties with an aggregate carrying value of approximately $2.3 billion; however, there can be no assurance that financing would be available for these properties at favorable terms, if at all (Note 7). See also “—Financing and Capital Activity” for details on our Fourth Amended and Restated Credit Facility entered into in April 2026.

Current wording

As of June 30, 2026, we had $490.7 million of capacity under existing REIT Portfolio debt facilities. In addition, our REIT Portfolio and Investment Management platform included 146 unleveraged consolidated properties with an aggregate carrying value of approximately $2.5 billion; however, there can be no assurance that financing would be available for these properties at favorable terms, if at all (Note 7). See also “—Financing and Capital Activity” for details on our Fourth Amended and Restated Credit Facility entered into in April 2026.

Previous wording

The following table compares the historical cash flow for the three months ended March 31, 2026 with the cash flow for the three months ended March 31, 2025 (in millions, totals may not add due to rounding):

Current wording

The following table compares the historical cash flow for the six months ended June 30, 2026 with the cash flow for the six months ended June 30, 2025 (in millions, totals may not add due to rounding):

Previous wording

Net cash provided by investing activities increased by $563.6 million for the three months ended March 31, 2026 compared to the prior year period, primarily due to (i) $543.7 million of higher cash inflows from real estate dispositions and (ii) $102.7 million of lower cash outflows for acquisitions. These increases were partially offset by (i) $62.8 million of higher cash used for investments in unconsolidated affiliates and (ii) $12.6 million of increased spending on development, construction, and property improvements.

Current wording

Net cash provided by investing activities increased by $662.9 million for the six months ended June 30, 2026 compared to the prior year period, primarily due to (i) $572.0 million of higher cash inflows from real estate dispositions, (ii) $148.3 million of lower cash outflows for acquisitions, (iii) $20.0 million less cash used for the issuance of a note receivable, and (iv) $15.1 million of higher return of capital from unconsolidated affiliates. These increases were partially offset by (i) $63.1 million of higher cash used for investments in unconsolidated affiliates, (ii) $9.8 million of increased spending on development, construction, and property improvements, (iii) $7.1 million of lower refunds of deposits for properties under contract, (iv) $6.8 million of cash received in the prior year upon the consolidation of a previously unconsolidated investment that did not recur, and (v) $5.4 million of proceeds from the sale of marketable securities in the prior year that did not recur.

Previous wording

Net cash used in financing activities increased by $593.8 million for the three months ended March 31, 2026 compared to the prior year period, primarily due to (i) $221.7 million of lower proceeds from the issuance of Common Shares, (ii) $199.3 million of increased repayments of debt, (iii) $158.6 million of higher capital distributions to noncontrolling interests, (iv) $8.0 million of lower contributions from noncontrolling interests, and (v) $3.5 million of higher dividend payments.

Current wording

Net cash used in financing activities increased by $697.5 million for the six months ended June 30, 2026 compared to the prior year period, primarily due to (i) $150.2 million of lower proceeds from the issuance of Common Shares, (ii) $331.5 million of increased net repayments of debt, (iii) $187.0 million of higher capital distributions to noncontrolling interests, (iv) $8.6 million more cash used to acquire noncontrolling interests, (v) $2.5 million of lower contributions from noncontrolling interests, and (vi) $4.0 million of higher dividend payments.

Previous wording

Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Report is based upon the Condensed Consolidated Financial Statements, which have been prepared in accordance with GAAP. The preparation of Condensed Consolidated Financial Statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. We base our estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We believe there have been no material changes to the items that we disclosed as our critical accounting policies under Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the year ended December 31, 2025.

Current wording

Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Report is based upon the Condensed Consolidated Financial Statements, which have been prepared in accordance with GAAP. The preparation of the Condensed Consolidated Financial Statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. We base our estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We believe there have been no material changes to the items that we disclosed as our critical accounting policies under Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the year ended December 31, 2025.