Acadia Cuts 2026 Earnings Outlook After Impairment

The Tip Desk · November 2, 2026 · 4 min read

Same-property NOI growth accelerated to 10.2% as FFO As Adjusted held at $0.31 a share.

Acadia Realty Trust (AKR) reported a third-quarter GAAP net loss of $0.03 a share after an $11.7 million, or $0.08 a share, non-cash impairment on two properties in process of being sold, and it cut its full-year net earnings outlook to $0.29-$0.30 a share from $0.40-$0.41.

The street-and-open-air retail REIT kept full-year NAREIT FFO guidance of $1.19-$1.21 a share and 2026 FFO As Adjusted guidance of $1.24-$1.26 a share.

Same-property NOI in the REIT Portfolio grew 10.2% in the three months ended September 30, 2026, from 8.7% in the second quarter, with street retail up 15.2% after 15.6% in the prior quarter. For the nine months ended September 30, 2026, same-property NOI growth was 8.3%. The company anticipates full-year 2026 same-property NOI growth of 7.5% to 8.5%. Those amounts exclude developments and redevelopments.

FFO As Adjusted was $45.2 million, or $0.31 a share, matching the second-quarter per-share level and up from $39.7 million, or $0.29 a share, a year earlier. NAREIT FFO was $44.5 million, or $0.30 a share, compared with $38.6 million, or $0.28 a share, in the year-ago third quarter. President and CEO Kenneth F. Bernstein said third-quarter same-property NOI growth ranks among the strongest in the company’s history and that through the first nine months of 2026 same-property NOI growth exceeded 8%, with FFO As Adjusted up nearly 10% versus the same period last year.

Economic occupancy and leased occupancy each fell 20 basis points to 94.2% and 95.5% as of September 30, 2026, from 94.4% and 95.7% at June 30, 2026. The company said the declines were entirely attributable to about 16,600 square feet of vacancy in street retail acquired in the quarter at 44 Main Street in Westport and 69-73 Greene Street in Soho, which it expects to lease in the near term. Excluding that acquired vacancy, economic occupancy would have increased about 10 basis points to 94.5%, with street and urban economic occupancy up about 30 basis points to 91.7%.

Conforming GAAP and cash leasing spreads on new leases were 98% and 62% in the third quarter, versus 91% cash spreads on new leases in the second quarter. Inclusive of renewals, the spreads were 49% and 25%. The company executed a lease with a national specialty retailer at 129 Fifth Avenue in Manhattan’s Flatiron District, acquired vacant in the second quarter, and said it signed a lease for the entirety of the building within 30 days at a rent well above underwriting, for a projected yield on cost in excess of 9%.

The signed-not-open pipeline grew 32% to $21.8 million at September 30, 2026, from $16.5 million at June 30, 2026, on about $8.4 million of new leasing, of which about $6.2 million was from new street and urban leases.

During the three months ended September 30, 2026, the company completed about $152 million of accretive street retail acquisitions in the REIT Portfolio, including 44 Main Street in Westport for $23 million, two storefronts at 69-73 Greene Street in Soho for $66 million, three Bleecker Street storefronts in the West Village for $20 million, 171-173 Greenwich Avenue for $10 million, and 8800-8804 Melrose Avenue in West Hollywood for $30 million. Year-to-date acquisition volume reached $775 million, or about $436 million at the company’s share, including $351 million in the REIT Portfolio.

At the Henderson Avenue development in Dallas, leases executed or in advanced negotiation reached about 90% of retail GLA, or 95% including the stabilized portfolio. About $144 million had been invested of a $210 million to $235 million fully funded project. Tenant openings are expected to begin in 2027 and continue throughout the year, with NOI contributions weighted toward the second half of 2027, and a projected yield on cost of 8% to 10%.

Pro-rata net debt to annualized adjusted EBITDA, net of estimated proceeds of unsettled forward equity, was 5.8x as of September 30, 2026, and 5.6x on a transaction-adjusted annualized EBITDA basis. Unsettled forward equity contracts cover 17.0 million shares for about $351 million of net proceeds, which the company said it expects to use to fund Henderson Avenue and pursue acquisitions. In October 2026, after quarter-end, the company received $20 million on an amendment and extension of its Sunset Park structured finance loan and invested about $120 million of incremental capital, net of the $20 million payment, to become sole lender on a $200 million financing at SOFR plus 300 basis points for four years.