Acadia Raises Outlook as Property Income Growth Accelerates
Cash leasing spreads on new leases jumped to 91% during the second quarter.
Acadia Realty Trust (AKR), a real-estate investment trust focused on street and suburban retail properties, raised its 2026 earnings outlook after same-property net operating income growth accelerated to 8.7% from 5.9% in the first quarter.
The quarter extended an operating upswing supported by street retail, where same-property NOI increased 15.6%. Acadia’s signed-not-opened annual-base-rent pipeline expanded 57% from March 31 to $16.5 million, as $8.9 million of new leasing exceeded $2.9 million of rent commencements.
Revenue fell 5.1% from a year earlier to $95.4 million, reflecting a 7.2% decline in rental revenue that was partly offset by an 85% increase in other revenue. GAAP net earnings rose to $0.05 a share from $0.01, primarily because of a property-sale gain. Earnings had been $0.22 a share in the first quarter, when sale gains contributed $0.22 a share.
FFO As Adjusted increased to $0.31 a share from $0.30 in the first quarter and $0.28 a year earlier. Adjusted FFO dollars rose to $44.7 million from $38.7 million a year ago.
Occupancy and rents also moved higher. Total economic occupancy increased 30 basis points sequentially to 94.4%, led by improvement in the suburban portfolio, while street-and-urban occupancy slipped to 91.4%. Annual base rent per square foot rose 6.4% from a year earlier to $40.19.
Acadia now expects 2026 FFO As Adjusted of $1.24 to $1.26 a share, compared with its April forecast of $1.22 to $1.26 and its February range of $1.21 to $1.25. The company also raised its GAAP net-earnings forecast to $0.40 to $0.41 a share from $0.37 to $0.39, while retaining its 5% to 9% same-property NOI growth outlook.
Acquisition volume slowed to about $149 million from roughly $503 million in the first quarter, bringing the year-to-date total to $652 million. Acadia ended June with 17.8 million unsettled forward shares representing $368.8 million of proceeds, and net debt to adjusted EBITDA improved to 5.1 times from 5.5 times at March 31.