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Acadia Realty Trust (AKR)
NYSE:AKR
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Acadia Realty
(NYSE:AKR)
64Neutral
Positive Factors
Financial Strength
The company successfully raised $320 million of equity to fund new deals, demonstrating financial strength and strategic planning.
Retail Store Openings
AKR is not seeing a slowdown in retailers' store opening plans, and consumer spending data and traffic levels remain healthy.
Negative Factors
Earnings Guidance
Despite strong growth activities, the 2024 FFO guidance was reiterated, suggesting potential delays in earnings impact.
Market Volatility
Despite recent market volatility, AKR is not seeing a shift in opening or closing plans from its retailers, which indicates stability and confidence in long-term growth.
Acadia Realty (AKR) vs. S&P 500 (SPY)
Market Cap
$2.45B
Dividend Yield3.88%
Average Volume (3M)1.13M
Price to Earnings (P/E)103.7
Beta (1Y)0.92
Revenue Growth1.69%
EPS Growth-7.10%
CountryUS
Employees129
SectorReal Estate
Sector Strength77
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.18
Shares Outstanding119,772,930
10 Day Avg. Volume886,662
30 Day Avg. Volume1,129,323
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.02
Price to Cash Flow (P/CF)16.70
P/FCF Ratio0.00
Enterprise Value/Market Cap2.03
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit20.07
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.00Price Target Upside32.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Acadia Realty Business Overview & Revenue Model
Company DescriptionAcadia Realty Trust (AKR) is a fully integrated equity real estate investment trust (REIT) specializing in the ownership, acquisition, redevelopment, and management of retail properties located primarily in high-barrier-to-entry, densely-populated urban and suburban markets across the United States. The company focuses on creating value through its investment management platform and aims to achieve superior risk-adjusted returns for its shareholders.
How the Company Makes MoneyAcadia Realty Trust generates revenue primarily through rental income from its portfolio of retail properties. The company leases space to a diverse range of tenants, including national, regional, and local retailers. In addition to base rent, it often collects additional income through expense recoveries and percentage rent that is tied to the sales performance of its tenants. Another significant revenue stream for Acadia comes from its investment management business, where it earns fees and promotes from managing external capital through various investment funds and joint ventures. These partnerships allow Acadia to leverage its expertise in acquiring and managing retail real estate assets, thus enhancing its earnings potential.
Acadia Realty Financial Statement Overview
Summary
Acadia Realty's financial performance is commendable with consistent revenue growth and strong gross profit margins. The balance sheet is robust with no debt and a strong equity ratio, reducing financial risk. However, challenges such as declining EBITDA margins and free cash flow growth indicate areas for improvement.Income Statement
Acadia Realty's income statement shows a consistent revenue growth with a 6.2% increase in 2024 compared to 2023. Gross profit margin and net profit margin for 2024 are healthy at 68.8% and 6.0%, respectively, indicating strong operational efficiency. The EBIT margin improved to 18.3% in 2024 from 13.6% in 2023. However, the EBITDA margin declined significantly from 57.4% in 2023 to 18.8% in 2024, suggesting potential concerns in managing operating expenses.72
Positive
Balance Sheet
The balance sheet of Acadia Realty is strong, with no total debt reported in 2024, a significant improvement from previous years. The equity ratio is robust, with 47.3% of total assets funded by stockholders' equity. Return on equity improved to 1.0% in 2024 from 1.2% in 2023, reflecting better profitability. This strong equity position and low leverage mitigate financial risk.80
Positive
Cash Flow
The cash flow statement shows a slight decline in operating cash flow in 2024 compared to 2023. Free cash flow growth is negative due to lower operating cash flow, yet the free cash flow to net income ratio remains strong. The operating cash flow to net income ratio indicates efficient cash management despite reduced free cash flow growth.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 359.69M | 338.69M | 326.29M | 292.50M | 255.48M | Gross Profit |
| 247.64M | 230.22M | 224.36M | 193.62M | 155.38M | EBIT |
| 65.66M | 46.07M | 26.11M | 44.45M | -22.72M | EBITDA |
| 239.82M | 194.39M | 162.03M | 167.89M | 115.86M | Net Income Common Stockholders |
| 21.65M | 19.87M | -65.25M | 23.55M | -66.04M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 31.58M | 50.77M | 17.16M | 17.75M | 19.23M | Total Assets |
| 4.37B | 4.29B | 4.30B | 4.26B | 4.19B | Total Debt |
| 1.67B | 1.93B | 1.83B | 1.85B | 1.76B | Net Debt |
| 1.66B | 1.92B | 1.81B | 1.83B | 1.74B | Total Liabilities |
| 1.84B | 2.16B | 2.05B | 2.11B | 2.14B | Stockholders Equity |
| 2.07B | 1.64B | 1.69B | 1.52B | 1.44B |
| Cash Flow | Free Cash Flow | |||
| 140.45M | 155.76M | 74.17M | 59.40M | 96.16M | Operating Cash Flow |
| 140.45M | 155.76M | 133.21M | 104.98M | 102.56M | Investing Cash Flow |
| -170.66M | -208.54M | -124.17M | -198.54M | -96.21M | Financing Cash Flow |
| 44.62M | 45.85M | -4.38M | 91.32M | -1.26M |
Acadia Realty Technical Analysis
Negative
19.60
Price Trends
21.07
Negative
22.29
Negative
22.29
Negative
Market Momentum
-0.39
Negative
46.24
Neutral
67.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AKR, the sentiment is Negative. The current price of 19.6 is above the 20-day moving average (MA) of 19.44, below the 50-day MA of 21.07, and below the 200-day MA of 22.29, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 46.24 is Neutral, neither overbought nor oversold. The STOCH value of 67.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AKR.
Acadia Realty Risk Analysis
Acadia Realty disclosed 50 risk factors in its most recent earnings report. Acadia Realty reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Acadia Realty Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.77B | 25.94 | 7.43% | 5.05% | 6.96% | -0.41% | |
75 Outperform | $1.52B | 22.66 | 7.23% | 6.72% | 7.80% | 4.15% | |
75 Outperform | $2.45B | 79.67 | ― | ― | ― | ||
74 Outperform | $1.34B | 18.27 | 8.66% | 3.85% | 5.13% | 88.91% | |
65 Neutral | $2.15B | 144.20 | 0.82% | 3.31% | 5.61% | 135.64% | |
64 Neutral | $2.45B | 103.70 | 1.11% | 3.88% | 1.69% | -7.10% | |
59 Neutral | $2.72B | 11.58 | 0.09% | 8782.99% | 5.32% | -16.79% |
* Real Estate Sector Average
Performance Comparison
AKR
Acadia Realty
19.60
2.62
15.43%
GTY
Getty Realty
27.38
1.92
7.54%
WSR
Whitestone REIT
13.13
2.08
18.82%
FCPT
Four Corners Property
27.71
5.21
23.16%
IVT
InvenTrust Properties
27.73
3.23
13.18%
CURB
Curbline Properties Corp.
23.28
3.68
18.78%
Acadia Realty Earnings Call Summary
Earnings Call Date:Feb 11, 2025
(Q4-2024)
| % Change Since: -16.67%|
Next Earnings Date:Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance in Acadia's street retail portfolio, strategic acquisitions, and successful leasing activity, despite some challenges with suburban retail and retailer bankruptcies. The company remains confident in its growth trajectory.Q4-2024 Updates
Positive Updates
Strong Portfolio Performance
Acadia achieved over 5% same-store NOI growth for each of the last three years, driven significantly by street retail performance. The company projects 5% to 6% same-store growth in 2025.
Record Leasing Activity
Acadia signed over 50 new leases totaling $13.5 million in annual rent, equivalent to nearly 10% of total ABR. Overall spreads for the year were approximately 35%.
Successful Acquisitions
Completed over $600 million of acquisitions, with $300 million for the Core Portfolio. Acquisitions included strategic additions in key markets like SoHo and Georgetown, with a going-in GAAP yield in the mid-6s and a five-year CAGR in excess of 7%.
Investment Management Growth
Two joint ventures executed in Q4, including a $275 million acquisition in Las Vegas, highlighting strong institutional capital relationships.
Increase in Occupancy and Leasing Pipeline
Sequential increase in Core physical occupancy by 140 basis points and a signed not yet open pipeline representing over 5% of Core ABR.
Negative Updates
Retailer Weakness and Bankruptcies
Reemergence of retailer weakness and bankruptcies, particularly with junior anchor retailers in the suburban shopping center portion of the portfolio.
Potential Interest Rate Challenges
Acknowledgement of challenges due to a higher-yielding bond market and the likelihood of a prolonged high-interest rate environment.
Suburban Retail Challenges
Choppiness observed from some suburban tenants, although mitigated by strong street retail performance.
Company Guidance
During the Acadia Realty Trust Fourth Quarter 2024 Earnings Conference Call, the company provided detailed guidance for 2025. They forecast a 5% to 6% same-store NOI growth, driven by a strong performance in their street retail portfolio, which has consistently delivered over 5% same-store NOI growth for each of the last three years. The company's acquisition activity in 2024 included over $600 million in transactions, split evenly between Core and Investment Management businesses, with a focus on strategic markets such as Georgetown, SoHo, and Williamsburg. The new acquisitions are projected to contribute a 7% CAGR, enhancing cash yields into the 7% range. Acadia has set 2025 FFO guidance at a midpoint of $1.35 per share, reflecting an anticipated growth of 5.5% from 2024, with internal growth and signed not yet open leases playing a significant role in boosting earnings. The company also emphasized its strong balance sheet, having raised approximately $740 million in common equity and completed over $1 billion in debt transactions during 2024, positioning them well for continued growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.