THE MEDICI LIST

by Mike Gee

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ACADIA REALTY TRUST

CIK: 8996291 Annual ReportLatest: 2026-02-13

10-K / February 13, 2026

Acadia Realty Trust

Overview

Acadia Realty Trust is a Maryland-formed, fully integrated equity REIT that owns, acquires, develops, and manages street and open-air retail properties and select urban assets in dense, high-barrier-to-entry U.S. markets. The business operates through two primary platforms and a structured financing program:

  • REIT Portfolio: A core portfolio of street/open-air retail properties (and select urban assets) held 100% or through joint ventures via the Operating Partnership.
  • Investment Management: An institutional co-investment platform that manages funds and co-investment ventures with third-party capital.
  • Structured Financing (SF): Investments in first mortgages and other real estate-backed notes and interests.

All assets and operations are conducted through the Operating Partnership. As of December 31, 2025, Acadia controlled approximately 96% of the Operating Partnership as its sole general partner and owned or held interests in 228 properties across the REIT Portfolio and Investment Management platforms.

Employees and tenants

  • Employees: 138 as of December 31, 2025 (109 at the executive office; 29 at regional property management offices).
  • Leases: More than 1,400 retail leases across both platforms as of December 31, 2025.
  • Top tenants (examples among the 20 largest by base rent): Target; TJX Companies; Lululemon; Trader Joe’s; Walgreens; Kohl’s; Lowe’s; Nordstrom Rack; Uniqlo; Sephora; Ulta Beauty; Gap; Watches of Switzerland.

Portfolio (as of December 31, 2025)

  • Total properties: 228 (REIT Portfolio and Investment Management combined; development/redevelopment properties included).
  • REIT Portfolio:
    • 151 operating properties totaling about 5.2 million square feet of gross leasable area (4.9 million square feet at Acadia’s pro-rata share).
    • Occupancy: 93.8% occupied and 94.8% leased (93.9% occupied and 94.7% leased at Acadia’s pro-rata share), excluding properties under development/redevelopment.
    • GLA range: roughly 1,000 to 800,000 square feet per property.
  • Investment Management:
    • 51 properties totaling about 9.2 million square feet of total GLA (2.4 million square feet at Acadia’s pro-rata share), excluding one property under development/redevelopment.
    • Occupancy: 92.5% occupied and 94.1% leased (90.1% occupied and 92.2% leased at Acadia’s pro-rata share).
  • Development and redevelopment:
    • REIT Portfolio: 13 development projects and 12 redevelopment projects.
    • Investment Management: 1 redevelopment project.
  • Regional exposure (area concentration, by region and Acadia share)
    • New York Metro: 1,410 GLA (REIT), ~92.2% occupied; base rent $77.159 million; ~28.6% of REIT annualized base rent; ~44.8% of Acadia’s total base rent.
    • Chicago Metro: 594 GLA; base rent $31.643 million; ~12.0% of REIT annualized base rent; ~18.4% of Acadia’s total base rent.
    • Mid-Atlantic: 1,261 GLA; base rent $20.411 million; ~25.5% of REIT base rent; ~11.9% of Acadia’s total base rent.
    • New England: 719 GLA; base rent $10.323 million; ~14.6% of REIT base rent; ~6.0% of Acadia’s total base rent.
    • Washington D.C. Metro: 276 GLA; base rent $16.795 million; ~5.6% of REIT base rent; ~9.8% of Acadia’s total base rent.
    • Midwest: 570 GLA; base rent $8.629 million; ~11.5% of REIT base rent; ~5.0% of Acadia’s total base rent.
    • Los Angeles Metro: 23 GLA; base rent $4.591 million; ~0.5% of REIT base rent; ~2.7% of Acadia’s total base rent.
    • Dallas Metro: 85 GLA; base rent $2.643 million; ~1.7% of REIT base rent; ~1.5% of Acadia’s total base rent.
  • Total base rent (REIT Portfolio): $172.194 million.

Financial performance (fiscal year ended December 31, 2025)

  • Rental revenue by segment (2025):
    • REIT: $239.2 million
    • Investment Management: $162.9 million
    • Structured Financing: $0
    • Total rental revenue (consolidated): $402.1 million
  • Other revenue: $2.9 million (REIT) + $5.7 million (Investment Management) = $8.6 million total.
  • Total revenue (rental + other, consolidated): $410.7 million for 2025.
  • Net income (loss) attributable to Acadia shareholders, by segment:
    • 2025:
      • REIT: $35.0 million
      • Investment Management: $(53.3) million
      • Structured Financing: $24.4 million
      • Consolidated total: $(40.0) million
    • 2024:
      • REIT: $26.0 million
      • Investment Management: $(1.2) million
      • Structured Financing: $24.1 million
      • Consolidated total: $21.7 million
    • 2023:
      • REIT: $10.5 million
      • Investment Management: $(10.3) million
      • Structured Financing: $0.3 million
      • Consolidated total: $(4.8) million
  • Selected items affecting 2025 results:
    • Investment Management impairment charges: $37.2 million (2025).
    • Loss on change in control for the REIT Portfolio: $9.6 million (reflecting consolidation of the Renaissance Portfolio after obtaining a controlling financial interest).
    • Periodic gains/losses on dispositions and real estate impairment charges in Investment Management and SF.

Acquisitions and dispositions (2025)

  • Acquisitions: Multiple properties across the REIT Portfolio and Investment Management platforms; Acadia’s share of acquisition spend totaled at least $487.3 million. Notable items include interest consolidation in the Renaissance Portfolio (Washington, DC metro) and several New York properties.
  • Dispositions: Mad River Station (Ohio) sold for $15.020 million. Other 2025 dispositions included partial interests in 640 Broadway (New York) and 1035 Third Avenue (New York). Eden Square was sold via a JV exit.

Equity programs and share activity

  • ATM program: Expanded in February 2025 to allow up to $500.0 million in aggregate sales with forward sale capability.
  • Forward shares outstanding under ATM: Approximately 14.7 million forward shares remaining to be settled as of December 31, 2025 (net proceeds approximately $295.5 million if physically settled).
  • Share repurchase: Authorization of up to $200.0 million; as of December 31, 2025, up to approximately $122.5 million of Common Shares could be repurchased under the program. No shares repurchased in 2023–2025.

Capital structure and liquidity

  • Total indebtedness: $1,873.4 million as of December 31, 2025; $370.6 million of this is variable-rate debt.
  • Debt profile: Approximately 80.2% of debt is fixed or effectively fixed; remaining variable-rate exposure would increase annual interest expense with rising rates (a 100-basis-point increase on current variable-rate debt would raise annual interest by about $3.7 million).
  • Interest rate management: Uses fixed-rate debt plus SOFR-based swaps and caps to manage rate risk; counterparties are generally the lenders providing the underlying loans.
  • 2025 financing highlights:
    • Amended senior unsecured credit facility to add a $250 million five-year delayed-draw term loan (maturity May 29, 2030) at a rate of SOFR + 1.20%; fully drawn by year-end 2025.
    • December 2025 refinancing of a Fund IV bridge facility and consolidation of remaining borrowings into a new $61.3 million senior facility.
  • Maturity profile: No significant REIT Portfolio debt maturities until 2028.

Structure and governance

  • Ownership and control: The Trust owned approximately 96% of the Operating Partnership and served as its general partner as of December 31, 2025.
  • REIT status: Operates as a REIT and follows the distribution framework applicable to REITs.
  • Governance and ownership limits: Board and ownership limits are in place to preserve REIT status. Maryland corporate governance provisions and relevant statutes affect control transactions and opt-out provisions.

Markets and competition

  • Geographic concentration: Exposure is concentrated in New York and Chicago regions. Performance and rents are sensitive to local market conditions, anchor tenant dynamics, and competition.
  • External factors: Inflation, consumer spending trends, e-commerce penetration, and macroeconomic conditions influence occupancy, rents, and tenant solvency.

Corporate responsibility and risk management

  • Environmental actions: Energy efficiency upgrades (LED and smart lighting), renewable energy installations (roof and parking lot solar), water conservation measures, and use of green leases with tenants. Recognized as a Green Lease Leader. Oversight provided by the Board’s Nominating and Corporate Governance Committee.
  • Climate and health/safety: Ongoing assessment of climate and natural disaster risks; integration of climate-related risk into budgeting and capital planning; emphasis on tenant and customer safety.
  • Cybersecurity and IT: Enterprise risk management program, incident response planning, annual employee training, third-party vendor risk assessments, and ongoing monitoring. Use of third-party providers and cloud services with cyber risk controls in place.

Business strategy

Acadia operates a diversified, two-platform real estate business focused on high-quality street retail and urban corridors, complemented by an Investment Management platform that partners with institutional capital. The company pursues active asset management, development and redevelopment to create value, and selective opportunistic investments through its Structured Financing and Investment Management activities. The stated objectives are to generate steady cash flows for shareholder distributions and pursue capital appreciation through development, re-tenanting, rental escalations, and selective acquisitions while maintaining financial flexibility through a balanced mix of debt and equity sources.

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