Search the web
Welcome, Guest
[Sign Out, My Account]
EDGAR_Online

Quotes & Info
Enter Symbol(s):
e.g. YHOO, ^DJI
Symbol Lookup | Financial Search
AKR > SEC Filings for AKR > Form 8-K on 25-Oct-2013All Recent SEC Filings

Show all filings for ACADIA REALTY TRUST | Request a Trial to NEW EDGAR Online Pro

Form 8-K for ACADIA REALTY TRUST


25-Oct-2013

Other Events


Item 8.01 Other Events

The following information sets forth the consolidated financial results of Acadia Realty Trust and subsidiaries (the "Company") for the quarter ended September 30, 2013. All per share amounts set forth below are on a fully diluted basis.

Earnings

Funds from operations ("FFO") (see financial information below for FFO definition and reconciliation to Net Income) of $0.32 per share

Earnings per share ("EPS") from continuing operations of $0.16

Core Portfolio -Strong Internal Growth Accompanied by Asset Recycling

Same store net operating income ("NOI") for the third quarter up 4.8% compared to 2012 and increased 8.4% on a year-to-date basis

September 30, 2013 94.0% portfolio occupancy; 95.7% including leased space not yet occupied

Currently under contract to sell an A&P supermarket-anchored shopping center for $18.4 million

Closed on previously announced $11.8 million acquisition in Georgetown, D.C.

Fund Platform - Acquisitions, Monetization and Redevelopment Progress

Acadia Strategic Opportunity Fund IV LLC ("Fund IV") closed on $18.9 million and is currently under contract for another $37.3 million of acquisitions

Acadia Strategic Opportunity Fund II, LLC ("Fund II") currently under contract to sell Fordham Place and Pelham Manor Shopping Plaza for $192.4 million

Signed Target as a co-anchor at Fund II's City Point project; now 65% pre-leased

Third Quarter 2013 Operating Results

FFO and Net Income from Continuing Operations for the quarter ended September 30, 2013 were $17.9 million and $8.9 million, respectively, compared to $12.7 million and $5.8 million, respectively, for the quarter ended September 30, 2012. For the nine months ended September 30, 2013, FFO and Net Income from Continuing Operations were $52.1 million and $26.0 million, respectively, compared to $34.2 million and $14.8 million, respectively, for the nine months ended September 30, 2012.

Earnings for the three and nine months ended September 30, 2013 and 2012, on a per share basis, were as follows:

                            Quarters ended September 30,          Nine Months ended September 30,
                          2013       2012        Variance        2013        2012        Variance
FFO per share             $0.32      $0.27        $0.05         $0.93       $0.75          $0.18
EPS from continuing
operations                $0.16      $0.12        $0.04         $0.47       $0.33          $0.14
EPS from discontinued
operations                $0.01      $0.04       $(0.03)        $0.03       $0.08         $(0.05)
EPS                       $0.17      $0.16        $0.01         $0.50       $0.41          $0.09

Core Portfolio - Strong Internal Growth and Strategic Asset Recycling

The Company's core portfolio ("Core Portfolio") is comprised of properties that are owned in whole or in part by the Company outside of its opportunity funds (the "Funds").

Same-Store NOI and Occupancy

Core Portfolio same-store NOI increased 4.8% for the third quarter 2013 compared to the third quarter 2012, and 8.4% year-to-date.

At September 30, 2013, the Company's Core Portfolio occupancy was 94.0%, as compared to 93.7% as of June 30, 2013. Including space currently leased but not yet occupied, the Core Portfolio was 95.7% leased.


Rent Spreads on New and Renewal Leases

The Company realized an increase in average rents on a GAAP basis, which includes the effect of the straight-lining of rents, of 14.3% on 155,000 square feet of new and renewal leases executed during the third quarter of 2013 in its Core Portfolio. On a contractual rent basis, which excludes straight-line rent, the Company experienced an increase of 4.6% in average rents for these same leases.

Recycling Activity - Acquired in Georgetown and Selling in New Jersey

The Company has closed on $120.9 million of Core Portfolio acquisitions since the beginning of 2013. As previously announced, the Company closed on 3200-3204 M Street in Georgetown, DC for a purchase price of $11.8 million. This 7,000 square foot property, tenanted by Banana Republic, is located at the intersection of M Street and Wisconsin Avenue, the two most desirable retail corridors in Georgetown. The location benefits from excellent demographics, including a population of approximately 321,000 and an average income of approximately $114,000 within a 3-mile radius.

During the third quarter, the Company entered into a contract to sell the A&P Shopping Center located in Boonton, New Jersey for $18.4 million.

The closing of this transaction and those under contract as discussed hereafter are subject to customary closing conditions, and specific to the sale of the A&P Shopping Center, the assumption of debt. As such, no assurance can be given that the Company will successfully complete these transactions.

Core Portfolio Anchor Recycling

As previously announced, the Company initiated three key re-anchoring projects during 2011. Two of the projects, the Bloomfield Town Square, located in Bloomfield Hills, Michigan, and the Branch Plaza located in Smithtown (Long Island), New York were completed prior to 2013. During the third quarter, the Company completed a lease with Designer Shoe Warehouse ("DSW") at the Crossroads Shopping Center located in White Plains, New York. Together with the recently signed PetSmart, these tenants will replace the former A&P supermarket at approximately double the rent and will raise the center's leased rate to 96%.

Fund Platform - Closed on $18.9 Million Acquisition; Continued Monetization of Fund II Assets

Fund IV New Investments

During the third quarter, Fund IV, in partnership with two unaffiliated entities, completed the acquisition of Paramus Plaza for $18.9 million. This 152,100 square foot property is anchored by Babies "R" Us and Ashley Furniture. The center is located on Route 17 South in the affluent suburban neighborhood of Paramus, New Jersey with a population of approximately 106,000 within a three mile radius and a median annual household income of approximately $123,000.

Also during the quarter, Fund IV entered into contracts to purchase $37.3 million of new acquisitions.

Fund II Continued Monetization

During the third quarter, Fund II entered into a contract to sell Fordham Place and the retail portion of the Pelham Manor Shopping Plaza for a combined purchase price of $192.4 million. Fund II developed these properties in connection with its New York Urban/Infill Redevelopment Initiative. The Company anticipates closing on this transaction prior to the end of the year.

City Point Progress

During the quarter, Fund II entered into a lease with Target to co-anchor City Point, its 1.8 million square foot mixed-use project located in downtown Brooklyn with a vibrant mix of retail, entertainment, food and residential uses. The new CityTarget store, which will occupy 120,000 square feet representing the entire second floor, will join other high-quality anchors Century 21 Department Store, Armani Exchange and Alamo Drafthouse Cinema. Following the signing of this lease, the Company has now completed all pre-leasing of the anchor retail space at City Point and the 675,000 square foot retail component is now 65% pre-leased. With the second through fifth floors now leased, only the first floor and concourse level remain to be leased between now and the expected opening of the center in 2015.


                      ACADIA REALTY TRUST AND SUBSIDIARIES
                              Financial Highlights
       For the Quarters and Nine Months ended September 30, 2013 and 2012
        (dollars and Common Shares in thousands, except per share data)


                                            For the Quarters ended            For the Nine Months ended
                                                 September 30,                      September 30,
                Revenues                      2013            2012             2013               2012

Rental income                            $    29,913       $  21,708      $     88,067       $     59,208
Interest income                                2,969           1,921             9,265              6,127
Expense reimbursements                         7,279           4,567            20,800             13,770
Other property income                            139             345               737                762
Management fee income                             18             290                60              1,166
Other income                                       -               -             2,962                  -
   Total revenues                             40,318          28,831           121,891             81,033
           Operating expenses
Property operating                             5,937           4,487            16,130             13,041
Real estate taxes                              5,795           4,353            15,739             11,973
General and administrative                     5,335           5,517            17,261             16,636
Depreciation and amortization                 10,450           7,376            29,278             20,671
   Total operating expenses                   27,517          21,733            78,408             62,321

Operating income                              12,801           7,098            43,483             18,712

Equity in earnings (losses) of
unconsolidated affiliates                      4,209          (2,538 )           7,274              1,997
Impairment of asset                                -               -            (1,500 )                -
Interest expense and other finance costs     (10,517 )        (6,085 )         (29,562 )          (16,547 )
Income (loss) from continuing operations
before income taxes                            6,493          (1,525 )          19,695              4,162
Income tax (provision) benefit                  (186 )           104               (53 )           (1,125 )
Income (loss) from continuing operations       6,307          (1,421 )          19,642              3,037


                      ACADIA REALTY TRUST AND SUBSIDIARIES
                              Financial Highlights
       For the Quarters and Nine Months ended September 30, 2013 and 2012
        (dollars and Common Shares in thousands, except per share data)

                                     For the Quarters ended            For the Nine Months ended
                                         September 30,                       September 30,
                                      2013             2012             2013               2012

Operating income from
discontinued operations                2,835            2,159             6,100              9,030
Gain on sale of properties                 -            5,917             4,191              8,585
Income from discontinued
operations                             2,835            8,076            10,291             17,615
Net income                             9,142            6,655            29,933             20,652
Loss (income) attributable to
noncontrolling interests:
Continuing operations                  2,551            7,223             6,391             11,775
Discontinued operations               (2,208 )         (6,297 )          (8,459 )          (13,998 )
Net loss (income) attributable
to noncontrolling
 interests                               343              926            (2,068 )           (2,223 )

Net income attributable to
Common Shareholders              $     9,485       $    7,581      $     27,865       $     18,429

    Supplemental Information
Income from continuing
operations attributable to
 Common Shareholders             $     8,858       $    5,802      $     26,033       $     14,812
Income from discontinued
operations attributable to
 Common Shareholders                     627            1,779             1,832              3,617
Net income attributable to
Common Shareholders              $     9,485       $    7,581      $     27,865       $     18,429

   Net income attributable to
 Common Shareholders per Common
         Share - Basic
Net income per Common Share -
Continuing
 operations                      $      0.16       $     0.12      $       0.48       $       0.33
Net income per Common Share -
Discontinued
 operations                             0.01             0.04              0.03               0.08
Net income per Common Share      $      0.17       $     0.16      $       0.51       $       0.41
Weighted average Common Shares        55,460           46,338            54,686             44,447
   Net income attributable to
 Common Shareholders per Common
       Share - Diluted 1
Net income per Common Share -
Continuing
 Operations                      $      0.16       $     0.12      $       0.47       $       0.33
Net income per Common Share -
Discontinued
 Operations                             0.01             0.04              0.03               0.08
Net income per Common Share      $      0.17       $     0.16      $       0.50       $       0.41
Weighted average Common Shares        55,818           46,812            55,092             44,884


                      ACADIA REALTY TRUST AND SUBSIDIARIES
                              Financial Highlights
       For the Quarters and Nine Months ended September 30, 2013 and 2012
        (dollars and Common Shares in thousands, except per share data)

            RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS 2
                                        For the Quarters ended              For the Nine Months ended
                                            September 30,                         September 30,
                                         2013               2012             2013               2012


Net income attributable to Common
Shareholders                      $      9,485           $   7,581      $     27,865       $     18,429

Depreciation of real estate and
amortization of leasing costs
  (net of noncontrolling
interests' share):
  Consolidated affiliates                7,558               5,827            21,145             16,308
  Unconsolidated affiliates                777                 374             1,978              1,155
Impairment of asset                          -                   -             1,500                  -
Gain on sale (net of
noncontrolling interests' share):
  Consolidated affiliates                    -              (1,178 )            (776 )           (1,391 )
  Unconsolidated affiliates                  -                   -                 -               (609 )
Income attributable to
noncontrolling interests' in
 Operating Partnership                     104                 105               329                269
Distributions - Preferred OP
Units                                        5                   4                16                 14
Funds from operations             $     17,929           $  12,713      $     52,057       $     34,175
Funds from operations per share -
             Diluted
Weighted average Common Shares
and OP Units 3                          56,436              47,410            55,735             45,513
Funds from operations, per share  $       0.32           $    0.27      $       0.93       $       0.75


ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights
For the Quarters and Nine Months ended September 30, 2013 and 2012
(dollars in thousands)

               RECONCILIATION OF OPERATING INCOME TO NET PROPERTY
                          OPERATING INCOME ("NOI") 2
                                            For the Quarters ended            For the Nine Months ended
                                                 September 30,                      September 30,
                                              2013            2012             2013               2012

Operating income                         $    12,801       $   7,098      $     43,483       $     18,712

Add back:
  General and administrative                   5,335           5,517            17,261             16,636
  Depreciation and amortization               10,450           7,376            29,278             20,671
Less:
  Management fee income                          (18 )          (290 )             (60 )           (1,166 )
  Interest income                             (2,969 )        (1,921 )          (9,265 )           (6,127 )
  Straight line rent and other
adjustments                                   (1,724 )          (262 )          (4,271 )           (1,322 )

Consolidated NOI                              23,875          17,518            76,426             47,404

Noncontrolling interest in NOI                (6,695 )        (4,638 )         (24,709 )          (10,906 )
Pro-rata share of NOI                         17,180          12,880            51,717             36,498
Operating Partnerships' interest in
Opportunity Funds                               (930 )        (1,064 )          (3,683 )           (2,427 )
Operating Partnerships' share of
unconsolidated joint ventures 4                  662           1,521             2,017              4,900
NOI - Core Portfolio                     $    16,912       $  13,337      $     50,051       $     38,971

             SELECTED BALANCE SHEET INFORMATION
                                         As of
                             September 30,    December 31,
                                  2013            2012
                                 (dollars in thousands)

Cash and cash equivalents   $        88,421  $       91,813
Rental property, at cost          1,348,979       1,051,531
Total assets                      2,349,368       1,908,440
Notes payable                     1,004,555         603,973
Total liabilities                 1,236,212         838,184


Notes:

1 Reflects the potential dilution that could occur if securities or other contracts to issue Common Shares were exercised or converted into Common Shares. The effect of the conversion of Common OP Units is not reflected in the above table as they are exchangeable for Common Shares on a one-for-one basis. The income allocable to such units is allocated on the same basis and reflected as noncontrolling interests in the consolidated financial statements. As such, the assumed conversion of these units would have no net impact on the determination of diluted earnings per share.

2 The Company considers funds from operations ("FFO") as defined by the National Association of Real Estate Investment Trusts ("NAREIT") and net property operating income ("NOI") to be appropriate supplemental disclosures of operating performance for an equity REIT due to their widespread acceptance and use within the REIT and analyst communities. FFO and NOI are presented to assist investors in analyzing the performance of the Company. They are helpful as they exclude various items included in net income that are not indicative of the operating performance, such as gains (losses) from sales of depreciated property, depreciation and amortization, and impairment of depreciable real estate. In addition, NOI excludes interest expense. The Company's method of calculating FFO and NOI may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. FFO does not represent cash generated from operations as defined by generally accepted accounting principles ("GAAP") and is not indicative of cash available to fund all cash needs, including distributions. It should not be considered as an alternative to net income for the purpose of evaluating the Company's performance or to cash flows as a measure of liquidity. Consistent with the NAREIT definition, the Company defines FFO as net income (computed in accordance with GAAP), excluding gains (losses) from sales of depreciated property, plus depreciation and amortization, impairment of depreciable real estate, and after adjustments for unconsolidated partnerships and joint ventures.

3 In addition to the weighted average Common Shares outstanding, basic and diluted FFO also assume full conversion of a weighted average 592 and 612 OP Units into Common Shares for the quarters ended September 30, 2013 and 2012, respectively and 618 and 617 OP Units into Common Shares for the nine months ended September 30, 2013 and 2012, respectively. Diluted FFO also includes the assumed conversion of Preferred OP Units into 25 Common Shares for each of the quarters and nine months ended September 30, 2013 and 2012. In addition, diluted FFO also includes the effect of 358 and 435 employee share options, restricted share units and LTIP units for the quarters ended September 30, 2013 and 2012, respectively and 406 and 424 employee share options, restricted share units and LTIP units for the nine months ended September 30, 2013 and 2012, respectively.

4 Does not include share of unconsolidated joint ventures within Opportunity Funds.


  Add AKR to Portfolio     Set Alert         Email to a Friend  
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for AKR - All Recent SEC Filings
Sign Up for a Free Trial to the NEW EDGAR Online Pro
Detailed SEC, Financial, Ownership and Offering Data on over 12,000 U.S. Public Companies.
Actionable and easy-to-use with searching, alerting, downloading and more.
Request a Trial Sign Up Now


Copyright © 2014 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.