Acadia Realty Trust: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 13 May 2026: press release. Guidance figures: 3 raised, 2 lowered, 1 new, 3 kept. The quarter’s numbers.

Read the filing

Key takeaways

• FFO As Adjusted rose to $0.30: FFO As Adjusted was $41.8 million, or $0.30 per diluted share, against $35.1 million, or $0.27, a year earlier. The prior-year figure excluded an $8.3 million tenant lease settlement. Source
• EPS and FFO As Adjusted guidance raised: The company raised 2026 EPS guidance to $0.37-$0.39 and FFO As Adjusted guidance to $1.22-$1.26 per share. Prior ranges were $0.24-$0.26 and $1.21-$1.25. Source
• Same-property NOI up 5.9%: REIT Portfolio same-property NOI rose to $38.8 million from $36.7 million. Management said the growth was primarily driven by 7.0% growth from the street and urban retail portfolio.
• Economic occupancy up 20 basis points: REIT Portfolio economic occupancy was 94.1% at March 31, 2026, up from 93.9% at December 31, 2025 and 91.7% a year earlier. Leased occupancy was 95.3%.
• New-lease spreads 50% GAAP, 31% cash: Conforming spreads on new leases were 50% GAAP and 31% cash, and 23% and 11% including renewals. The new-lease sample was one lease of 20,214 square feet.
• Fund V and West Cobb gain of $0.15: The Fund V and West Cobb recapitalization produced a gain on sale of about $112 million, or $22 million ($0.15 per share) at Acadia's share. Management separately reported a $4.1 million Pinewood Square gain.
• Leverage at 5.5x net debt to EBITDA: Net debt to adjusted EBITDA, including pro-rata Investment Management debt and unsettled forward equity, was 5.5x, against 4.9x at December 31, 2025. Net debt was $1.28 billion.

“Complementing this internal growth, we completed over $600 million of accretive REIT and Investment Management acquisitions in 2026.”

Kenneth F. Bernstein, President and CEO of Acadia

Guidance

What changed from last quarter

• Guidance raised: EPS guidance raised to $0.37-$0.39 from $0.24-$0.26. Source
• Guidance raised: FFO As Adjusted guidance raised to $1.22-$1.26 from $1.21-$1.25. Source
• Guidance lowered: NAREIT FFO per share guidance moved to $1.17-$1.21 from $1.18-$1.22. Source
• New guidance: A $0.04 per share redeemable noncontrolling interest adjustment appears in the 2026 guidance reconciliation, where the prior guidance showed a dash. Source
• Guidance raised: The transaction and other expenses add-back in the FFO As Adjusted reconciliation rose to $0.05 per share from $0.03. Source
• Guidance kept: Annual same-property NOI guidance of 5% to 9% was kept, as management reaffirmed it.
• New: FFO As Adjusted is a new supplemental measure beginning with fiscal 2026.
• New: After quarter-end, the Company completed a $109 million acquisition of street retail on Newbury Street in Boston.
• New: In April 2026 the corporate credit facility was amended and upsized to $1.425 billion from $1.175 billion, with extended maturities.

Results and FFO

• Net income per share reached $0.22: Net income per share was $0.22, against $0.01 a year earlier. Management attributed the increase mainly to gains on sale of $0.22 per share, while the prior year included a $0.08 loss on change in control.
• FFO As Adjusted rose to $0.30: FFO As Adjusted was $41.8 million, or $0.30 per diluted share, against $35.1 million, or $0.27, a year earlier. The prior-year figure excluded an $8.3 million tenant lease settlement. Source
• NAREIT FFO fell to $0.26: NAREIT FFO was $36.9 million, or $0.26 per diluted share, against $44.6 million, or $0.34 a year earlier. Management said the quarter included charges of about $5 million, or $0.04 per share. Source

2026 guidance

• EPS and FFO As Adjusted guidance raised: The company raised 2026 EPS guidance to $0.37-$0.39 and FFO As Adjusted guidance to $1.22-$1.26 per share. Prior ranges were $0.24-$0.26 and $1.21-$1.25. Source
• NAREIT FFO range moved lower: Projected NAREIT FFO per share moved to $1.17-$1.21 from $1.18-$1.22. The reconciliation now deducts a gain on disposition of $0.22 per share, against $0.04 previously. Source
• Same-property NOI range held: Annual same-property NOI guidance stayed at 5% to 9%. Management said the range was reaffirmed in the first-quarter release. Source
• Transaction cost add-back raised: Transaction and other expenses added back to reach FFO As Adjusted rose to $0.05 per share from $0.03. Management describes these as costs not reflective of ongoing core results. Source

“we remain well positioned to deliver sustained NOI and earnings growth over a multi-year horizon.”

Kenneth F. Bernstein, President and CEO of Acadia

Same-property and segment NOI

• Same-property NOI up 5.9%: REIT Portfolio same-property NOI rose to $38.8 million from $36.7 million. Management said the growth was primarily driven by 7.0% growth from the street and urban retail portfolio.
• REIT and Investment Management NOI both higher: REIT Portfolio NOI at pro-rata share was $41.8 million, against $36.7 million. Investment Management NOI at pro-rata share was $13.2 million, against $9.6 million, giving total NOI of $55.1 million. Source
• Prior-year termination income noted: Adjusted EBITDA was $58.6 million, against $57.1 million. The first quarter of 2025 included about $8.4 million of income from a terminated lease. Source

Leasing demand and occupancy

• Economic occupancy up 20 basis points: REIT Portfolio economic occupancy was 94.1% at March 31, 2026, up from 93.9% at December 31, 2025 and 91.7% a year earlier. Leased occupancy was 95.3%.
• Street and urban occupancy gained most: The street and urban portfolio rose 140 basis points from the fourth quarter to 91.7% economic occupancy. Suburban economic occupancy was 95.1%.
• New-lease spreads 50% GAAP, 31% cash: Conforming spreads on new leases were 50% GAAP and 31% cash, and 23% and 11% including renewals. The new-lease sample was one lease of 20,214 square feet.
• Signed-not-opened pipeline increased: The signed-not-opened ABR pipeline at pro-rata share rose to $10.5 million from $8.9 million at December 31, 2025, with $5.2 million in redevelopment and pre-stabilized REIT assets.
• REIT ABR per square foot higher: REIT Portfolio annualized base rent per square foot was $40.01, up from $39.30 at December 31, 2025 and $36.88 a year earlier. Source
• Sprouts lease signed after quarter-end: After quarter-end, the Company signed a lease with Sprouts Farmers Market at 555 9th Street in San Francisco, approximately 26,000 square feet.

Costs and expenses

• Same-property expenses rose 7.5%: Same-property CAM and real estate tax expense rose 7.5% to $14.4 million. Expense reimbursements rose 10.5% to $11.2 million, against same-property revenue growth of 6.4%. Source
• G&A rose on retirement-related stock compensation: General and administrative expense was $15.3 million, against $11.6 million. Management said about $4.1 million of the increase was accelerated stock compensation on a retirement.
• Fixed-charge coverage lower: Fixed-charge coverage was 3.5x, against 4.0x a year earlier, for the REIT Portfolio and Investment Management combined. Source

Transactions and recapitalizations

• REIT acquisitions of $79 million: REIT Portfolio acquisitions totaled $78.7 million: 1045 and 1165 Madison Avenue for $21.3 million, Rhode Island Place and 846 W. Armitage add-ons, and 225 Worth Avenue for $43.5 million.
• Shops at Skyview joint venture: The Investment Management platform, with TPG Real Estate, bought Shops at Skyview in Queens for about $424 million gross. Acadia holds a 20% interest, about $84.8 million at its share.
• Recapitalizations of about $504 million: Investment Management recapitalizations totaled $504.1 million, covering Atlantic Portfolio, Avenue at West Cobb and Pinewood Square. Acadia retained 20% interests in these assets.
• Fund V and West Cobb gain of $0.15: The Fund V and West Cobb recapitalization produced a gain on sale of about $112 million, or $22 million ($0.15 per share) at Acadia's share. Management separately reported a $4.1 million Pinewood Square gain.
• Landstown Commons sold for $102 million: Landstown Commons in Virginia Beach was sold in January for $102 million. The gain was $26 million, or $5.1 million ($0.04 per share) at Acadia's share. Gross dispositions totaled $497.0 million.
• Preferred equity placed in two ventures: Acadia provided $41.7 million of preferred equity to Shops at Skyview and $27.5 million to the Atlantic Portfolio recapitalization. Acadia's share of the total was $55.4 million. Source

Balance sheet and debt

• Leverage at 5.5x net debt to EBITDA: Net debt to adjusted EBITDA, including pro-rata Investment Management debt and unsettled forward equity, was 5.5x, against 4.9x at December 31, 2025. Net debt was $1.28 billion.
• Debt plus preferred at 37% of capitalization: Debt plus preferred equity was 37% of total market capitalization of $4.24 billion. Net debt plus preferred equity was 30%. Source
• REIT debt maturities through 2028: REIT Portfolio debt maturing is 2.5% in 2026, 2.6% in 2027 and 7.5% in 2028. Management said there are no significant REIT Portfolio debt maturities until 2029.
• Variable-rate debt partly swapped: Interest rate swaps with $1.07 billion of pro-rata notional hedge part of the variable-rate debt, at a weighted average fixed SOFR of 2.8%. Source

Equity and dividends

• No equity issued in quarter: No equity was issued in the first quarter. Common shares and OP units outstanding reached 139.9 million at March 31, 2026, mainly from forward settlement and vesting.
• Forward shares settled for about $56 million: About 2.4 million shares settled under previously issued forward equity contracts, producing cash proceeds of about $56 million.
• Dividend held at $0.20 per share: Dividends declared were $0.20 per share, totaling $28.3 million. The FFO payout ratio was 77%, against 62% a year earlier. The FFO As Adjusted payout ratio was 68%, against 79%. Source

Strategy and development

• Inaugural Palm Beach investment: Management called 225 Worth Avenue its inaugural investment in Palm Beach. It cited continued deployment of capital through the Investment Management platform.
• Henderson Avenue expansion in Dallas: The Henderson Avenue Expansion is a 176,000 square foot REIT development in Dallas, with stabilization estimated for 2027 or 2028. Source
• Fee income of $7.6 million: Fee income at pro-rata share totaled $7.6 million, including $3.7 million of asset and property management fees, with $3.5 million from other vehicles and third-party assets. Source

Coming up, as management said on 13 May 2026

• Club Studio expected to open: The previously signed Club Studio at 555 9th Street in San Francisco is expected to open in late 2026.
• Forward equity to fund pipeline: Unsettled forward equity contracts for 12.3 million shares, about $239 million of net proceeds, are to fund the acquisition pipeline and the Henderson Avenue redevelopment.
• Credit facility accordion to $2.0 billion: The $1.425 billion credit facility has an accordion feature that lets the company increase capacity to $2.0 billion.
• Henderson Avenue partner planned: Management intends to partner with Ignite-Rebees DevCo LLC on the Henderson Avenue Expansion and expects to retain a controlling 95% interest. Source

Figures management reported

Risks management discussed

• Financial: Management reported one note with a principal amount of $17.8 million in default at March 31, 2026. Source
• Financial: The allowance for credit loss includes a $0.5 million allowance tied to the City Point Loan, which is classified as redeemable noncontrolling interests. Source
• Financial: Pro-rata Investment Management debt maturing in 2026 totals $40.6 million out of $375.4 million of pro-rata Investment Management debt. Source

Earlier plans management reported on

• Not stated: Management said the first-quarter same-property NOI growth of 5.9% came with a reaffirmation of the 5% to 9% annual guidance.
• Met: Management said the Madison Avenue acquisition, previously disclosed, was completed in January 2026.
• Met: Management said the Landstown Commons disposition, previously disclosed, was completed through the Fund V platform in January 2026.

Other quarters

• Q2 FY2026 earnings call
• Q2 FY2025 results
• Q1 FY2025 results
• Q4 FY2024 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.