ACADIA REALTY TRUST
For the period ended Sep 30, 2026. Filed Nov 2, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 2, 2026
AKR$19.80+0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0001193125-26-323776
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-02.
0001193125-26-443763
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 162 previous paragraphs and 190 current paragraphs.
90 unchanged; 70 reworded; 29 added; 2 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
New York Metro
Current report
$66.1 million acquisition of 69-73 Greene Street in New York, New York;
Current report
$23.1 million acquisition of 44 Main Street in Westport, Connecticut;
Current report
$20.2 million aggregate acquisition of two retail properties located on Bleecker Street in New York, New York;
Current report
$10.1 million acquisition of 171-173 Greenwich Avenue in Greenwich, Connecticut;
Current report
Boston Metro
Current report
South Florida Metro
Current report
Los Angeles Metro
Current report
District of Columbia Metro
Current report
Chicago Metro
Current report
Dallas Metro
Current report
$3.2 million acquisition of 2310 N. Henderson Avenue in Dallas, Texas, which was added to the Company’s Henderson Avenue development project.
Current report
During the nine months ended September 30, 2026, the Company disposed of 1525 W. Belmont Avenue, a REIT Portfolio property located in Chicago, Illinois, for approximately $4.2 million (Note 2). In October 2026, the Company sold the property located at 1801-1803 Connecticut Avenue in Washington, D.C. for $3.8 million (Note 16).
Current report
Additionally, in connection with an acquisition of a property in the third quarter of 2026, the Company recorded a $5.3 million liability for certain pre-acquisition leasing matters affecting a portion of the property.
Current report
Structured Financing Activity
Current report
During the nine months ended September 30, 2026, the Company originated a note receivable with an aggregate commitment of $75.0 million. The Company funded approximately $53.5 million at closing and an additional $0.4 million through September 30, 2026 (Note 3).
Current report
In October 2026, the Company amended and extended its existing structured finance loan related to a property in the Sunset Park neighborhood of Brooklyn, New York. In connection with the transaction, the Company received a $20.0 million payment and acquired the property’s senior loan, resulting in approximately $120.0 million of incremental capital invested, net of the payment. The Company’s investments were consolidated into a new $200.0 million financing secured, directly or indirectly, by the property. The Company also committed to fund up to an additional $40.0 million, subject to certain conditions (Note 3, Note 16).
Current report
Results were impacted by an impairment charge of $11.7 million related to the shortened hold period of two REIT Portfolio properties (Note 8).
Current report
Gain on disposition of properties decreased $2.6 million primarily due to lower gains recognized on property sales during 2026 as compared to the prior year period.
Current report
Equity in earnings of unconsolidated affiliates increased $1.1 million primarily due to recapitalization activity and improved operating performance resulting from tenant lease-up at the underlying properties.
Current report
Equity in losses of unconsolidated affiliates decreased $2.1 million primarily due to dispositions completed during 2025 and 2026.
Current report
Results were impacted by an impairment charge of $11.7 million related to the shortened hold period of two REIT Portfolio properties (Note 8).
Current report
Gain on disposition of properties decreased $3.0 million primarily due to gains recognized on property dispositions in the prior year period that did not recur in 2026.
Current report
Equity in earnings of unconsolidated affiliates increased $1.3 million primarily due to the recapitalization activity and improved operating performance of unconsolidated investments.
Current report
Net income attributable to noncontrolling interests and redeemable noncontrolling interests increased $166.2 million and $3.3 million, respectively, reflecting their share of the variances discussed above.
Current report
Structured Financing
Current report
During the nine months ended September 30, 2026, we originated a note receivable with a total commitment of $75.0 million, of which $53.9 million is currently drawn. The remaining $21.1 million commitment under the note receivable is available to fund future advances subject to the terms and conditions of the loan agreement (Note 3, Note 9).
Current report
In October 2026, the Company amended and extended its existing structured finance loan related to a property in the Sunset Park neighborhood of Brooklyn, New York, resulting in approximately $120 million of incremental capital invested, net of a $20 million payment received in connection with the transaction. The Company funded the investment with borrowings under its Revolving Credit Facility (Note 3, Note 16).
Current report
Net cash provided by operating activities increased $7.5 million to $132.5 million for the nine months ended September 30, 2026, compared to $125.0 million in the prior year period. Net income increased $199.9 million, which was largely offset by changes in non-cash reconciling items, including a $144.4 million increase in gains on property dispositions and a $25.6 million decrease in impairment charges. Operating cash flows also benefited from $14.0 million of higher distributions of operating income from unconsolidated affiliates and a $7.7 million favorable change in accounts receivable.
Removed paragraphs (2)
Previous report
Equity in earnings of unconsolidated affiliates increased $17.7 million primarily due to the gain on sale of Tri-City Plaza, and gain on disposition of properties increased $4.4 million primarily due to the sale of New Towne Center, both completed in 2026.
Previous report
Net cash provided by operating activities was relatively flat, decreasing by $1.1 million for the six months ended June 30, 2026 compared to the prior year period, despite a $194.5 million increase in net income. The increase in net income was largely driven by non-cash and non-operating items, primarily a $146.1 million gain on property dispositions, that do not impact operating cash flow.
Reworded paragraphs (70)
Previous 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.
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 III, Fund IV, and Fund V), legacy investments through Fund II, and select co-investment ventures. Fund III, Fund IV and Fund V currently include institutional partner capital, while Fund II is wholly owned by the Company. Following the Company’s acquisition of the remaining third-party interest in Fund II in June 2026, the Company’s remaining legacy investment associated with Fund II is presented within Other Investment Management properties, 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
As of June 30, 2026, the Company owned or had an ownership interest in 231 properties, including development or redevelopment projects (Note 1). The Company’s operating income is primarily derived from rental revenues from operating properties, including tenant expense recoveries, net of property operating and corporate overhead expenses.
Current wording
As of September 30, 2026, the Company owned or had an ownership interest in 237 properties, including development or redevelopment projects (Note 1). The Company’s operating income is primarily derived from rental revenues from operating properties, including tenant expense recoveries, net of property operating and corporate overhead expenses.
Previous wording
Includes 12 pre-stabilized properties in the REIT Portfolio.
Current wording
Includes 10 pre-stabilized properties in the REIT Portfolio.
Previous 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.
Current wording
During the nine months ended September 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 six months ended June 30, 2026, the Company completed consolidated acquisitions totaling approximately $198.4 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 the nine months ended September 30, 2026, the Company completed consolidated acquisitions totaling approximately $351.4 million, including:
Previous wording
$21.3 million acquisition of retail condominium units at 1045 and 1165 Madison Avenue in New York City;
Current wording
$21.3 million acquisition of retail condominium units at 1045 and 1165 Madison Avenue in New York, New York;
Previous wording
$9.6 million acquisition of a retail unit at 129 Fifth Avenue in New York City;
Current wording
$9.6 million acquisition of a retail unit at 129 Fifth Avenue in New York, New York;
Previous wording
$110.2 million acquisition of retail condominium units at 4-6 and 28 Newbury Street in Boston, MA;
Current wording
$110.2 million acquisition of retail condominium units at 4-6 and 28 Newbury Street in Boston, Massachusetts;
Previous wording
In July 2026, the Company acquired a single-tenant retail building at 8800-8804 Melrose Avenue in West Hollywood, California for $29.0 million, which was added to the REIT Portfolio. During the same period, the Company disposed of the parking garage at 1035 Third Avenue in New York, New York, a consolidated Fund IV Investment Management property, for $8.3 million (Note 16).
Current wording
$30.2 million acquisition of 8800-8804 Melrose Avenue in West Hollywood, California;
Previous wording
$9.5 million strategic add-on acquisition of ground-lease interests at Rhode Island Place in Washington, D.C.; and
Current wording
$9.5 million strategic add-on acquisition of ground lease interests at Rhode Island Place in Washington, D.C.;
Previous wording
$4.4 million strategic add-on acquisition of a retail property and residential units at 846 West Armitage Avenue in Chicago.
Current wording
$4.4 million strategic add-on acquisition of a retail property and residential units at 846 West Armitage Avenue in Chicago, Illinois; and
Previous wording
These acquisitions were integrated into the Company’s existing REIT Portfolio and are consolidated (Note 2).
Current wording
These acquisitions were integrated into the Company’s existing REIT Portfolio and are consolidated.
Previous 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).
Current wording
During the nine months ended September 30, 2026, the Company completed several transactions through its Investment Management segment, consisting of equity investments in unconsolidated joint ventures, recapitalizations of existing assets, and property dispositions (Note 2, Note 4).
Previous 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).
Current wording
During the nine months ended September 30, 2026, the Company completed consolidated property dispositions within its Investment Management platform totaling approximately $136.4 million, including the sale of Landstown Commons for $102.0 million, the sale of 1964 Union Street for $2.6 million, the sale of New Towne Center for $23.5 million and the sale of the parking garage condominium unit at 1035 Third Avenue for $8.3 million (Note 2).
Previous wording
During the six months ended June 30, 2026, the Company completed unconsolidated property dispositions within its Investment Management platform totaling approximately $83.0 million, including the sale of 650 Bald Hill Road for $20.5 million, and the sale of Tri-City Plaza for $62.5 million (Note 4).
Current wording
During the nine months ended September 30, 2026, the Company completed unconsolidated property dispositions within its Investment Management platform totaling approximately $83.0 million, including the sale of 650 Bald Hill Road for $20.5 million, and the sale of Tri-City Plaza for $62.5 million (Note 4).
Previous wording
On June 11, 2026, we completed a forward equity offering of 9,000,000 Common Shares at an initial forward sale price of $21.80 per share. In July 2026, the underwriters partially exercised their over-allotment option for an additional 242,996 Common Shares. We did not receive any proceeds at the time of the offering and related underwriters’ option exercise; upon settlement of the forward sale agreements, which must occur within one-year of the effective date, we expect to receive net proceeds of approximately $201.1 million, which we intend to use to fund acquisition opportunities, repay outstanding indebtedness, and for general corporate purposes. We believe the offering provides additional flexibility to manage the timing of our capital raising activities relative to our capital needs.
Current wording
On June 11, 2026, we completed a forward equity offering of 9,000,000 Common Shares at an initial forward sale price of $21.80 per share. In July 2026, the underwriters partially exercised their over-allotment option for an additional 242,996 Common Shares. We did not receive any proceeds at the time of the offering and related underwriters’ option exercise; upon settlement of the forward sale agreements, which must occur within one year of the effective date, we expect to receive net proceeds of approximately $199.6 million, which we intend to use to fund acquisition opportunities, repay outstanding indebtedness, and for general corporate purposes. We believe the offering provides additional flexibility to manage the timing of our capital raising activities relative to our capital needs.
Previous 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).
Current wording
During the nine months ended September 30, 2026, we settled 7,012,954 outstanding forward shares under the Company’s $500.0 million “at-the-market” program (the “ATM Program”) and received proceeds of $143.6 million. This included settlements of $55.9 million in March, $72.1 million in June, and $15.6 million in August. Proceeds were used to fund investment activity (Note 10).
Previous wording
Macroeconomic conditions, including inflationary pressures, elevated energy prices, higher interest rates, and broader geopolitical developments, continue to present risks for our business and the businesses of our tenants. While inflation has moderated from prior periods, certain operating and capital costs remain elevated. However, the majority of our leases include contractual rent escalations and expense recovery provisions, which help mitigate the impact of inflation on operating results. We also seek to manage operating expenses through cost-conscious property management practices and the use of multi-year service contracts where appropriate.
Current wording
Macroeconomic conditions, including inflationary pressures, elevated energy prices, higher interest rates, and broader geopolitical developments, continue to present risks for our business and the businesses of our tenants. Certain operating and capital costs remain elevated and may continue to fluctuate based on broader economic conditions. However, the majority of our leases include contractual rent escalations and expense recovery provisions, which help mitigate the impact of inflation on operating results. We also seek to manage operating expenses through cost-conscious property management practices and the use of multi-year service contracts where appropriate.
Previous wording
We seek to drive value across our portfolio through leasing momentum, active development and redevelopment projects, and strategic deployment of capital into high-quality assets. The Company manages its exposure to interest rate fluctuations primarily through the use of fixed-rate debt and interest rate derivative instruments, including interest rate swaps and caps that are designated as hedging instruments(Note 8). While higher interest rates have increased borrowing costs, we believe our capital structure and hedging strategy provide meaningful protection against interest rate volatility.
Current wording
We seek to drive value across our portfolio through leasing momentum, active development and redevelopment projects, and strategic deployment of capital into high-quality assets. The Company manages its exposure to interest rate fluctuations primarily through the use of fixed-rate debt and interest rate derivative instruments, including interest rate swaps that are designated as hedging instruments(Note 8). While higher interest rates have increased borrowing costs, we believe our capital structure and hedging strategy provide meaningful protection against interest rate volatility.
Previous wording
Net income attributable to Acadia shareholders for the REIT Portfolio increased $1.9 million compared to the prior year period.
Current wording
Net income attributable to Acadia shareholders for the REIT Portfolio decreased $8.2 million compared to the prior year period.
Previous wording
Rental revenue increased $8.2 million, primarily reflecting $4.5 million from acquisitions completed during 2025 and 2026 and $3.0 million from tenant lease-up activity.
Current wording
Rental revenue increased $8.0 million, primarily reflecting $4.8 million from acquisitions completed during 2025 and 2026 and $3.0 million from tenant lease-up activity.
Previous wording
Depreciation and amortization increased $1.6 million, property operating expenses increased $1.4 million, and real estate taxes increased $1.2 million, primarily due to new property acquisitions in 2026 and 2025.
Current wording
Depreciation and amortization increased $2.0 million and property operating expenses increased $2.2 million, primarily due to new property acquisitions completed in 2026 and 2025 and the related increase in property-level operating costs.
Previous wording
Interest expense increased $2.5 million, primarily due to higher average outstanding borrowings associated with acquisitions completed during 2025 and 2026.
Current wording
Interest expense increased $2.2 million, primarily due to higher average outstanding borrowings associated with acquisitions completed during 2025 and 2026.
Previous wording
Realized and unrealized holding gains (losses) decreased $2.0 million due to changes in mark-to-market adjustments on marketable securities that were liquidated in 2025.
Current wording
Realized and unrealized holding losses decreased $2.2 million due to changes in mark-to-market adjustments on marketable securities that were liquidated in 2025.
Previous wording
Net income attributable to Acadia shareholders for Investment Management increased $7.5 million compared to the prior year period.
Current wording
Net income attributable to Acadia shareholders for Investment Management increased $2.0 million compared to the prior year period.
Previous wording
Rental revenue decreased $15.4 million primarily due to reduced rental income following property dispositions and recapitalization activity within Fund V completed in 2026.
Current wording
Rental revenue decreased $16.4 million primarily due to reduced rental income following property dispositions and recapitalization activity within Fund V completed in 2026.
Previous wording
Other revenue increased $1.5 million primarily due to higher fee income from acquisitions completed during 2025 and 2026.
Current wording
Other revenue increased $1.9 million primarily due to higher fee income from acquisitions completed during 2025 and 2026.
Previous wording
Depreciation and amortization, property operating expenses and real estate taxes decreased $5.6 million, $1.8 million, and $1.8 million, respectively, primarily due to the Fund V recapitalization and the disposition of Landstown Commons in 2026.
Current wording
Depreciation and amortization, property operating expenses and real estate taxes decreased $5.3 million, $2.2 million, and $1.8 million, respectively, primarily due to the Fund V recapitalization and the disposition of Landstown Commons in 2026.
Previous wording
Results also benefited from the absence of an $18.2 million impairment charge recognized in the prior year period.
Current wording
Results also benefited from the absence of a $12.6 million impairment charge recognized in the prior year period.
Previous wording
Interest expense decreased $5.9 million, primarily due to the Fund V recapitalization and disposition activity completed in 2026.
Current wording
Interest expense decreased $6.7 million, primarily due to the Fund V recapitalization and disposition activity completed in 2026.
Previous 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.
Current wording
Net income attributable to noncontrolling interests increased $13.4 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 $1.3 million for the three months ended September 30, 2026, compared to $2.3 million for the prior year period.
Previous wording
Comparison of Results for the Six Months Ended June 30, 2026 to the Six Months Ended June 30, 2025
Current wording
Comparison of Results for the Nine Months Ended September 30, 2026 to the Nine Months Ended September 30, 2025
Previous wording
The results of operations by reportable segment for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, are summarized in the table below (in millions, totals may not add due to rounding):
Current wording
The results of operations by reportable segment for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, are summarized in the table below (in millions, totals may not add due to rounding):
Previous wording
Net income attributable to Acadia shareholders for the REIT Portfolio increased $1.4 million compared to the prior year period.
Current wording
Net income attributable to Acadia shareholders for the REIT Portfolio decreased $6.7 million compared to the prior year period.
Previous 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.
Current wording
Rental revenue increased $15.2 million, primarily reflecting $12.1 million from acquisitions completed during 2025 and 2026, $9.0 million from tenant lease-up activity, and $2.1 million from the 2025 consolidation of the Renaissance Portfolio. These increases were 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
Depreciation and amortization, property operating expenses, and real estate taxes increased $2.2 million, $2.1 million, and $1.7 million, respectively, primarily due to acquired properties.
Current wording
Depreciation and amortization, property operating expenses, and real estate taxes increased $4.2 million, $4.2 million, and $1.4 million, respectively, primarily due to acquired properties.
Previous wording
Interest expense increased $5.5 million due to higher average outstanding borrowings associated with acquisitions completed during 2025 and 2026.
Current wording
Interest expense increased $7.6 million due to higher average outstanding borrowings associated with acquisitions completed during 2025 and 2026.
Previous wording
Net income attributable to noncontrolling interests increased $152.8 million reflecting the noncontrolling interests' share of the variances discussed above.
Current wording
Net income attributable to noncontrolling interests increased $1.7 million reflecting the noncontrolling interests’ share of the variances discussed above.
Previous wording
Net income attributable to Acadia shareholders for Investment Management increased $41.7 million compared to the prior year period.
Current wording
Net income attributable to Acadia shareholders for Investment Management increased $43.6 million compared to the prior year period.
Previous wording
Rental revenue decreased $18.3 million primarily due to Fund V property dispositions completed in 2026.
Current wording
Rental revenue decreased $34.6 million primarily due to Fund V property dispositions completed in 2026.
Showing the first 40 of 70 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Interest income from the Structured Financing portfolio decreased $1.6 million primarily due to a lower average outstanding investment balance following repayments received during 2025, including the partial repayment of the City Point Loan in 2025.