Key Highlights

  • FFO As Adjusted rose to USD 0.31 per share from USD 0.29, while GAAP net loss was USD 0.03.
  • REIT portfolio same-property net Operating Income increased 10.2%, led by street retail growth of 15.2% in the quarter.
  • Leasing spreads on new leases reached 98% on a GAAP basis and 62% on a cash basis.
  • The signed-not-open pipeline grew 32% to USD 21.8 million from USD 16.5 million at the end of June.

Operating Metrics Strengthen

Acadia Realty Trust (NYSE:AKR) reported third-quarter 2026 FFO As Adjusted of USD 0.31 per share, compared with USD 0.29, and NAREIT FFO of USD 0.30, compared with USD 0.28. Same-property net operating income in the REIT portfolio rose 10.2%, after 8.7% in the second quarter, with street retail up 15.2%. Chief executive Kenneth Bernstein said Demand is beginning to broaden into larger-format urban markets that were slower to recover. He said top-line growth is reaching the bottom line, with FFO As Adjusted up nearly 10% over the first nine months of 2026.

For nine months, FFO As Adjusted was USD 0.92 per share versus USD 0.84, and same-property growth exceeded 8%.

Impairment Drives a GAAP Loss

GAAP net loss was USD 0.03 per share, versus Earnings of USD 0.03 a year earlier. The decrease came primarily from a non-cash Impairment charge of USD 11.7 million, or USD 0.08 per share, on two properties in the process of being sold. Net Debt to annualized adjusted EBITDA rose to 5.8x from 5.1x at June 30, while net debt to transaction-adjusted annualized EBITDA was 5.6x and fixed charge coverage was 3.3x. Adjusted EBITDA at pro-rata share was USD 63.0 million, compared with USD 60.0 million a year earlier. Dividends declared were USD 0.20 per share.

Guidance and Growth Pipeline

The company maintained its full-year NAREIT FFO and FFO As Adjusted guidance and cut its net Earnings Per Share range to USD 0.29 to USD 0.30 from USD 0.40 to USD 0.41. Management anticipates full-year 2026 same-property NOI growth of 7.5% to 8.5%.

Acadia completed about USD 152 million of street retail acquisitions in the quarter. The signed-not-open pipeline included about USD 8.4 million of new leasing, of which about USD 6.2 million came from new street and urban leases. At Henderson Avenue in Dallas, roughly 90% of retail space is executed or in advanced negotiation, with openings targeted throughout 2027 and a projected Yield on cost of 8% to 10%. Management noted that the acquisitions add scale in key street markets while Liquidity supports further investment.

Points to Follow

Same-property NOI growth has accelerated from 5.4% in the third quarter of 2025 to 10.2% in the latest period. Investment management NOI at pro-rata share was USD 12.5 million versus USD 11.3 million, and total pro-rata NOI reached USD 59.0 million versus USD 50.5 million. Items to follow include the sale of the two impaired properties, the rise in net debt Leverage after acquisitions and the conversion of the signed-not-open pipeline into rent.