Acadia Realty Trust Sets 5-6% Same-Store NOI Growth Target Amid Retail Strength and $15M Leasing Pipeline

Acadia Realty Trust aims for 5-6% same-store NOI growth, driven by strong street retail performance and a $15M leasing pipeline. CEO Kenneth F. Bernstein noted continued momentum across the company's three key business drivers: internal growth through its core street retail portfolio, accretive external growth via acquisitions, and a robust development pipeline.

Acadia Realty Trust (NYSE: AKR) has reported strong operating results for the second quarter of 2025, highlighting robust performance across its key business drivers. The company's CEO, Kenneth F. Bernstein, noted continued momentum in its core street retail portfolio, accretive external growth through acquisitions, and a robust development pipeline.

The company reported GAAP net earnings of $0.01 per share, consistent with the same period last year, and increased NAREIT FFO and FFO before special items to $0.27 per share and $0.32 per share, respectively, compared to $0.25 per share and $0.31 per share for the same period last year [1]. Acadia reaffirmed its full-year guidance for core same-property NOI growth of 5-6%, achieving 4.2% growth for the second quarter driven by increased occupancy.

The company's core portfolio occupancy percentage increased by 50 basis points to 92.2%, and it maintained a total signed not yet opened pipeline at approximately 7% of pro-rata minimum rent. Acadia executed a 35,000 square foot lease with LA Fitness (Club Studio) at 555 9th Street in San Francisco, California, and completed $157 million of accretive core street retail acquisitions during the second quarter in Rye, New York [1].

Acadia's CEO commented, "We delivered another strong quarter as we are continuing to see positive momentum from our differentiated Street Retail portfolio. Our same-property NOI is on track to grow 5-6% this year. In addition, we invested $157 million in accretive Street Retail assets, expanding our scale in our NYC corridors of Williamsburg and Flatiron/Union Square. And lastly, during the quarter, we have further enhanced our liquidity, reduced borrowing costs, and extended duration of our debt maturities. We have a strong and liquid balance sheet, an irreplaceable Street Retail Portfolio and an Investment Management Business that is built to capitalize in all cycles."

The company's NAREIT FFO for the quarter ended June 30, 2025, was $38.1 million, or $0.27 per share, representing an 8% increase compared to the same period last year. FFO before special items was $44.1 million, or $0.32 per share, compared to $0.31 per share for the same period last year. Acadia had $5.4 million of realized investment gains from the sale of Albertsons stock during the quarter [1].

Acadia's balance sheet remains strong, with a debt-to-EBITDA ratio of 5.5x at June 30, 2025, down from 6.3x at June 30, 2024. The company entered into a new five-year $250 million delayed draw term loan at an all-in rate of approximately 4.6%, using the proceeds to repay amounts outstanding on its revolving credit facility and a secured obligation [1].

Acadia's strong performance in the second quarter positions the company well for achieving its full-year guidance and continuing to build value for shareholders.

References:
[1] https://markets.ft.com/data/announce/detail?dockey=600-202507291615BIZWIRE_USPRX____20250729_BW770827-1