March 2024
1
Table of Contents
Introduction ………………………………. 3
Corporate Update ……………………….. 11
|
Why Street Retail ……..……………….… |
19 |
|
Benefits of Ownership ……………..……. |
20 |
|
Window of Opportunity to Invest ………. |
24 |
Why Acadia ……………………………….. 26
2
Introduction
3
Acadia Realty Snapshot
Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual operating platforms (Core Portfolio and Strategic Capital) and its disciplined, location-driven investment strategy.
Acadia Realty Trust accomplishes this goal by:
- Building a best-in-class Core real estate portfolio with meaningful concentrations of assets in the nation's most dynamic corridors
- Making profitable opportunistic and value- add investments through its Strategic Capital Platform
- And maintaining a strong balance sheet.
ACADIA TOTAL OPERATING PORTFOLIO1
|
Core Portfolio |
GLA at 100% |
Pro-rata |
Pro-rata Share |
Pro-rata Share |
|
Total |
Share Total |
Occupancy |
Leased |
|
|
Street & Urban |
1,470 |
1,266 |
88.9% |
91.4% |
|
Suburban |
3,910 |
3,751 |
94.4% |
96.2% |
|
Total Core |
5,380 |
5,018 |
93.0% |
95.0% |
|
Strategic Capital |
||||
|
Total Funds |
8,985 |
1,945 |
89.6% |
92.4% |
|
Total |
14,365 |
6,963 |
1 As of 12/31/2023 AKR Supplemental Report. Square feet in '000s
4
Business Model Differentiation - Dual Platform
CORE/ON-BALANCE SHEET
- Public Capital
- Strategy: Open-air retail format agnostic depending on cycle and opportunities. Focused on high growth markets.
- Strategic Capital: Utilizing strategic institutional capital.
- Strategy: Opportunistic/Value-Add across capital stack, high-yielding, redevelopments and special situations.
INVESTMENT MANAGEMENT PLATFORM
CORE
COMPETENCY
DISTRESSED
RETAILER
REAL ESTATE
5
Our Differentiation is Driving Growth
Live, work, play
Street
50%
Suburban Urban
30% 20%
|
Stable |
Densification |
6
Our Prime Corridor Presence
Projected multi-year
annual growth in excess of 10%
|
Greenwich, CT |
Melrose Place |
|
Los Angeles, CA |
|
|
Henderson Ave, |
SoHo, NYC, NY |
Williamsburg, |
Armitage Ave, |
|
Dallas, TX |
Brooklyn, NY |
Chicago, IL |
with Mark to Market ranging from
10% - 50%+
|
Rush-Walton, |
Georgetown, |
|
Chicago, IL |
Washington D.C. |
7
Our Street Portfolio - What It Is Not
NOT
Return to Office
Dependent
|
FALSE NARRATIVE |
REALITY |
|
Stalled return to Office and Hybrid Work has |
Amenity-oriented retail in office dense submarkets |
|
a negative Impact on ALL "Urban Retail" |
are dependent on workers & commuters |
|
The false narrative generally conflates amenity- |
HOWEVER dynamic retail corridors have |
|
oriented retail with dynamic retail corridors |
completely different traffic drivers |
Williamsburg,
September 2023
Foot Traffic 2023 vs 2019 (pre-pandemic)
Williamsburg 8%
Soho 0%
|
-28% |
Financial District |
-18%MidtownSource: Placer.ai
-40%-30%-20%-10%0%10%
8
Building Blocks of Projected Core Internal NOI Growth
|
8-11% |
of $30-$40M |
|
Total NOI Growth |
|
|
Annual CAGR |
$22.5-30M
NOI Growth4-6%
Annual CAGR
Street/Urban $7.5-10M
NOI Growth
Suburban
2.5%
Contractual
Rent Steps
+
2-3%
Redevelopment Repositioning - MTM
2-3%
Lease-up
Components of
CAGR
|
Note: Based upon projected 2023 through year-end 2026 |
9 |
Beyond Words, We Delivered
Our Core Portfolio HAS and IS POISED to grow 5-10%
What We Said
"In terms of the multi-year Core NOI growth trajectory…we are also starting to see the building blocks forming to grow
above and beyond that…And we are becoming increasingly optimistic that it shows up within the next few years."
(Q4-2020 Earnings Call)
What We Did
5-10% Projected Range
10%
Approx. 6.5% = AKR average of last 11 quarters
5%
10
Attachments
Disclaimer
Acadia Realty Trust published this content on 29 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 February 2024 22:52:20 UTC.