Acadia Realty Trust Reports Fourth Quarter and Full Year 2012 Operating Results

Tue Feb 5, 2013 4:15pm EST

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WHITE PLAINS, N.Y.--(Business Wire)--
Acadia Realty Trust (NYSE: AKR) today reported operating results for the quarter
and year ended December 31, 2012. All per share amounts are on a fully diluted
basis. 

Fourth Quarter and Full Year 2012 Highlights

Earnings

* Funds from operations ("FFO") of $0.29 per share for the fourth quarter 2012
and $1.04 for the full year 2012 
* Earnings per share ("EPS") from continuing operations of $0.17 for the fourth
quarter 2012 and $0.51 for the full year 2012 
* The Company forecasts a 2013 range for FFO per share of $1.17 to $1.25 and EPS
of $0.66 to $0.71

Core Portfolio - $224 Million of Acquisitions and Strong Portfolio Performance

* Same store net operating income ("NOI") for the fourth quarter up 7.6%
compared to 2011; up 3.7% for full year 2012 over 2011 
* December 31, 2012 portfolio occupancy of 94.2% 
* During 2012, Acadia closed on $224.3 million of acquisitions; $101.6 million
during the fourth quarter for 13 properties located in Chicago, Washington,
D.C., Westport, Connecticut, and Bloomfield, New Jersey 
* Current pipeline under contract of $86.6 million

Fund Platform - Fund IV Invests on Lincoln Road in South Miami; Funds II and III
Profitably Monetize Assets, including Self Storage

* During 2012, closed on $267.5 million of new Fund assets 
* Fund IV closed on its first three property acquisitions during the quarter for
an aggregate purchase price of $151.2 million 
* During the quarter, Funds II and III sold 12 of 14 self-storage facilities for
an aggregate sales price of $261.6 million. The remaining two assets are under
contract for sale. 
* Fund II sold Canarsie Plaza, located in Brooklyn, New York for $124.0 million
during the quarter

Balance Sheet - Positioned for Growth with Low Leverage and Strong Liquidity

* Core portfolio debt net of cash on hand ("Net Debt") to EBITDA ratio of 4.0x
at December 31, 2012; 4.6x including pro-rata share of Opportunity Funds 
* Combined Net Debt to total equity and debt capitalization ("Total Market
Capitalization") of 22% at December 31, 2012 
* Raised $227.3 million of net equity proceeds during 2012 to fund acquisitions,
including $128.6 million during the fourth quarter 
* Subsequent to year-end, closed on a new $150 million unsecured line of credit

Fourth Quarter and Full Year 2012 Operating Results

FFO and Net Income from Continuing Operations for the quarter ended December 31,
2012 were $14.7 million and $8.7 million, respectively, compared to $10.8
million and $3.5 million, respectively, for the quarter ended December 31, 2011.
For the year ended December 31, 2012, FFO and Net Income from Continuing
Operations were $48.8 million and $24.0 million, respectively, compared to $42.9
million and $18.7 million, respectively, for the year ended December 31, 2011. 

During 2012, the National Association of Real Estate Investment Trusts
("NAREIT") issued a clarification to the definition of FFO whereby impairment
charges for depreciable real estate should be excluded in the calculation of
FFO. Accordingly, 2011 FFO has been increased to exclude an impairment charge of
$2.6 million, resulting in a change in 2011 FFO per share from $0.97 as
originally reported, to $1.04 as reflected below. 

Earnings for the quarters and years ended December 31, 2012 and 2011, on a per
share basis, were as follows:

                                                                                                                                                   
                            Quarters ended December 31,                                   Years ended December 31,                                 
                            2012                 2011                 Variance            2012                 2011                 Variance       
 FFO per share              $    0.29            $    0.25            $      0.04         $    1.04            $    1.04            $      --      
 EPS from continuing        $    0.17            $    0.08            $      0.09         $    0.51            $    0.45            $      0.06    
 operations                                                                                                                                        
 EPS from discontinued      $    0.25            $    0.11            $      0.14         $    0.34            $    0.80            $      (0.46)  
 operations                                                                                                                                        
 EPS                        $    0.42            $    0.19            $      0.23         $    0.85            $    1.25            $      (0.40)  
                                                                                                                                                   


The following significant items contributed to the above variances in EPS from
continuing operations:

                                                                                                         
                                                                    Variance                             
                                                                    
2012 v. 2011                        
                                                                    Quarter                 Year         
 Income from 2011/2012 acquisitions and redevelopment projects      $     0.03              $    0.11    
 2011 additional mortgage interest income                                 (0.01)                 (0.11)  
 2012 lower mortgage interest expense                                     0.03                   0.09    
 2011 gain on extinguishment of debt                                      --                     (0.04)  
 Gain on involuntary conversion of asset                                  0.05                   0.05    
 Acquisition costs                                                        (0.01)                 (0.03)  
 Other items, net                                                         --                     (0.01)  
 Total variance                                                     $     0.09              $    0.06    
                                                                                                         


EPS from discontinued operations of $0.34 for the year ended December 31, 2012
and $0.80 for the year ended December 31, 2011 were primarily attributable to
net gains on sales of properties. 

Core Portfolio - Strong Operating Results; Exceeds 2012 Acquisition Goal by
Closing on $224 Million of Street and High-Density Locations

Acadia`s core portfolio ("Core Portfolio") is comprised of properties that are
owned in whole or in part by Acadia outside of its opportunity funds (the
"Funds"). 

Occupancy and Same-Store NOI

At December 31, 2012, Acadia`s Core Portfolio occupancy was 94.2%, up 130 basis
points from September 30, 2012. Including space currently leased but not yet
occupied, the Core Portfolio is 94.4% leased. 

Core Portfolio same-store NOI increased 7.6% and 3.7%, respectively, for the
fourth quarter and full year 2012 compared to 2011. Excluding the impact of the
Re-anchoring Activities as defined below, same-store NOI increased 2.0% and
2.9%, respectively, for these periods. 

Rent Spreads on New and Renewal Leases

Year-to-date through December 31, 2012, the Company realized an increase in
average rents of 6.2% on 315,000 square feet of executed new and renewal leases
in its Core Portfolio. Excluding the effect of the straight-lining of rents, the
Company experienced a decrease of 0.9% in average rents in its Core Portfolio. 

Core Portfolio Anchor Recycling

Acadia previously announced three key re-anchoring initiatives at the Bloomfield
Town Square, located in Bloomfield Hills, Michigan, and two former A&P
supermarkets located in the New York metropolitan area (collectively, the
"Re-anchoring Activities"). Earlier during 2012, the Company completed the
Bloomfield Hills re-anchoring with the opening of a Dick`s Sporting Goods, Ulta
and Five Below at the center. During the fourth quarter, LA Fitness opened for
business in 45,000 square feet at the Branch Plaza, replacing the majority of
space previously occupied by one of the A&P supermarkets. The re-anchoring of
the other A&P space at the Crossroads Shopping Center is anticipated to be
completed during the second half of 2013. 

Acquisition Activity - Investing in Urban/Street Retail and High-Density Markets

During the year ended 2012, Acadia acquired a total of 24 Core Portfolio
properties for $224.3 million, including the previously announced $101.6 million
fourth quarter acquisitions of the following 13 properties:

* Bloomfield, New Jersey - Acadia acquired a 129,000 square foot stand-alone
Home Depot located in Bloomfield, New Jersey for $12.5 million. Situated in
Northern New Jersey, the property is supported by a population in excess of
300,000 within three miles of the property. 
* Connecticut Avenue NW, Washington, D.C. - The Company acquired a 42,000 square
foot, two property portfolio located in Washington, D.C., within walking
distance of Dupont Circle for $23.2 million. 
* Main Street, Westport, Connecticut - Acadia completed the acquisition of
181-185 Main Street in Westport, Connecticut for $14.2 million. Westport is
considered one of Fairfield County`s affluent "Gold Coast" towns and this
property is located at the northernmost anchor of Westport`s Main Street
shopping district. 
* 639 West Diversey Parkway, Chicago, Illinois - Acadia, acquired a 22,000
square foot, two-level property located in the Lincoln Park section of Chicago
for $10.7 million including the assumption of $4.4 million of debt. This
strategic acquisition now provides Acadia with two blocks of contiguous
ownership on the south side of West Diversey Parkway. 
* Street Retail Portfolio, Chicago, Illinois - Acadia completed the acquisition
of eight street retail properties for $41.1 million. These properties represent
the last of the previously announced, 18-property portfolio within Chicago`s key
street-retail markets.

Acadia also has a current acquisition pipeline of $86.6 million under contract,
which is subject to certain closing conditions and, as such, no assurance can be
given that closing will be successfully completed. 

Investments in Notes Receivable

During the fourth quarter, Acadia invested an aggregate $74.1 million in notes
receivable, of which $43.3 million was secured by first mortgages on properties
located in New York City and Chicago. 

Fund Platform - 2012 Year-to-date Acquisitions Totaling $267.5 Million - Fund IV
Closes Initial Acquisitions; Fund II and Fund III Monetize Self-Storage and
Other Assets

Fund IV Acquisitions

As previously announced, Acadia completed the closing of Acadia Strategic
Opportunity Fund IV LLC ("Fund IV"), which received total capital commitments of
$540.6 million, including Acadia`s share of $125.0 million, or 23%. This is the
fourth in a series of institutional funds dedicated to making opportunistic and
value-add investments in retail real estate. With leverage, Fund IV has up to
$1.5 billion of buying power. During the fourth quarter, Fund IV closed on its
first three acquisitions for an aggregate $151.2 million as follows:

* Lincoln Road, Florida - Fund IV, in partnership with Terranova Corporation,
acquired a 54,400 square foot, three-property portfolio on Lincoln Road in Miami
Beach, Florida for $139.0 million. Acadia, through Fund III, is also partners
with Terranova Corporation in its 2011 acquisition of the three-property, 60,700
square foot, portfolio located on Lincoln Road and Lincoln Lane. 
* Catonsville, Maryland - Fund IV, in partnership with MCB Holdings, acquired a
58,000 square foot, single-tenant property located in Catonsville, Maryland for
$4.7 million. Acadia, through Fund III, previously partnered with MCB Holdings
on three other acquisitions located in the Baltimore metropolitan area. 
* 210 Bowery, Manhattan - Fund IV also acquired a 9,200 square foot,
single-tenant property located at 210 Bowery in Manhattan for $7.5 million.

Storage Post Portfolio Disposition

During December 2012, as previously announced, subsidiaries of Funds II and III
sold 12 of their combined 14 property self-storage portfolio for an aggregate
$261.6 million. The Funds combined investment in these 12 assets aggregated
approximately $230 million including disposition costs. The remaining two
properties, which also include the retail component of Fund II`s Liberty Avenue
property in Ozone Park, Queens, are under contract for sale at an aggregate
price of $32.3 million. 

Other Fund II Disposition

During the quarter, Fund II sold Canarsie Plaza, located in Brooklyn, New York,
for $124.0 million. During 2007, Fund II had acquired this property, which was a
vacant warehouse building and subsequently developed it into a BJ`s Wholesale
Club anchored shopping center. Fund II`s investment in this property, inclusive
of disposition costs and net of $24.5 million of lease termination income, was
approximately $98 million. 

Balance Sheet - Positioned for Growth with Low Leverage and Strong Liquidity;
Established New Unsecured Line

Subsequent to year-end, Acadia closed on a new unsecured line of credit,
replacing its existing $64.5 million secured line. The current availability of
up to $150 million under the facility can be increased to $300 million based on
achieving certain thresholds. Interest is based on levels of leverage starting
with a rate of LIBOR plus 155 basis points. 

In connection with the above Core Portfolio acquisitions and Acadia`s pro-rata
share of Fund acquisitions, during the fourth quarter, the Company issued 1.7
million Common Shares under its ATM program, and in a separate transaction, sold
3.5 million Common Shares, for aggregate net proceeds of $128.6 million. 

Acadia continues to maintain a solid balance sheet with available liquidity and
low leverage as evidenced by the following as of December 31, 2012:

* The Company had total liquidity of $118.4 million, including $53.9 million of
cash on hand and $64.5 million available under an existing line of credit,
excluding the Funds` cash and credit facilities. As previously discussed, this
existing line was replaced with a $150 million unsecured facility subsequent to
year-end. 
* Core Portfolio Net Debt to EBITDA ratio of 4.0x 
* Including the Company`s Core Portfolio debt and pro-rata share of the
Company`s Fund debt ("Combined"), a Net Debt to EBITDA ratio of 4.6x 
* Combined Net Debt to Total Market Capitalization of 22% 
* Core Portfolio fixed-charge coverage ratio of 3.7 to 1 and a Combined
fixed-charge coverage ratio of 3.3 to 1

Outlook - Earnings Guidance for 2013

The Company forecasts its 2013 annual FFO will range from $1.17 to $1.25 per
share and 2013 EPS from $0.66 to $0.71. The following table summarizes
management`s 2013 guidance (dollars in millions, except per share amounts):

                                                                                                              
                                                             2013                                     2012    
                                                             Low               High             Actual        
 Core and pro-rata share of Funds portfolio income           $   66.5          $    70.5        $     47.6    
 Asset and property management fee income, net of taxes          14.5               15.0              16.3    
 Transactional fee income, net of taxes                          6.5                7.0               6.8     
 Promote income from Funds, RCP Venture and                                                                   
 other income, net of taxes                                      1.0                1.5               1.5     
 General and administrative expense                              (24.5)             (24.0)            (23.4)  
 FFO                                                         $   64.0          $    70.0        $     48.8    
 FFO per share                                               $   1.17          $    1.25        $     1.04    
                                                                                                              


The following is a reconciliation of the calculation of forecasted earnings per
diluted share and FFO per diluted share:

                                                                                         
 Guidance Range for 2013                                             Low         High    
 Earnings per share                                                  $ 0.66      $ 0.71  
 Depreciation of real estate and amortization of leasing costs:                          
 Wholly owned and consolidated partnerships                          0.46        0.48    
 Unconsolidated partnerships                                         0.04        0.05    
 Noncontrolling interest in Operating Partnership                    0.01        0.01    
 FFO per share                                                       $ 1.17      $ 1.25  
                                                                                         


Forecasted new Core Portfolio and Fund investments are anticipated to be key
drivers of 2013 earnings growth. In addition, the Company is assuming an
increase in same-store NOI for the Core Portfolio between 2% and 3% for the
year. This forecast also includes earnings dilution as a result of Fund
monetization activities completed during 2012 and anticipated during 2013.
Management will discuss its 2013 earnings guidance and related assumptions in
further detail on its scheduled year-end investor conference call. 

Management Comments

"During 2012, our team successfully navigated economic and retailing
crosscurrents along the path to completing $1.0 billion of transactional
activity across our dual - core and fund - platforms," stated Kenneth F.
Bernstein, President and CEO of Acadia Realty Trust. "Our core acquisition
activity, which emphasizes urban/street retail, continues to not only strengthen
our portfolio, but also position it to meet the realities of the new
multi-channel retailing environment. With respect to our fund platform, last
year, we were active on multiple fronts: acquiring $267 million of new
opportunistic/value-add investments, profitably monetizing $446 million of
stabilized investments, and successfully raising our fourth institutional fund,
which we capitalized with $1.5 billion of discretionary buying power, on a
levered basis. It was a productive year, during which we created value for all
of our stakeholders." 

Investor Conference Call

Management will conduct a conference call on Wednesday, February 6, 2013 at
12:00 PM ET to review the Company's earnings and operating results. The live
conference call can be accessed by dialing 888-771-4371. The pass code is
"34037331" or "Acadia Realty". The call will also be webcast and can be accessed
in a listen-only mode at Acadia's web site at www.acadiarealty.com. If you are
unable to participate during the live webcast, the call will be archived and
available on Acadia's website. Alternatively, to access the replay by phone,
dial 888-843-7419, and the passcode will be "34037331#". The phone replay will
be available through Wednesday, February 13, 2013. 

About Acadia Realty Trust

Acadia Realty Trust, a fully-integrated equity real estate investment trust, is
focused on the acquisition, ownership, management and redevelopment of
high-quality retail properties and urban/infill mixed-use properties with a
strong retail component located primarily in high-barrier-to-entry,
densely-populated metropolitan areas along the East Coast and in Chicago. Acadia
owns, or has an ownership interest in, these properties through its core
portfolio and its opportunistic/value-add investment funds. Additional
information may be found on the Company`s website at www.acadiarealty.com. 

Certain matters in this press release may constitute forward-looking statements
within the meaning of federal securities law and as such may involve known and
unknown risks, uncertainties and other factors that may cause the actual
results, performances or achievements of Acadia to be materially different from
any future results, performances or achievements expressed or implied by such
forward-looking statements. These forward-looking statements include statements
regarding Acadia`s future financial results and its ability to capitalize on
potential opportunities arising from continued economic uncertainty. Factors
that could cause the Company`s forward-looking statements to differ from its
future results include, but are not limited to, those discussed under the
headings "Risk Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in the Company`s most recent annual report
on Form 10-K filed with the SEC on February 28, 2012 ("Form 10-K") and other
periodic reports filed with the SEC, including risks related to: (i) the current
global financial environment and its effect on retail tenants; (ii) the
Company`s reliance on revenues derived from major tenants; (iii) the Company`s
limited control over joint venture investments; (iv) the Company`s partnership
structure; (v) real estate and the geographic concentration of the Company`s
properties; (vi) market interest rates; (vii) leverage; (viii) liability for
environmental matters; (ix) the Company`s growth strategy; (x) the Company`s
status as a REIT; (xi) uninsured losses and (xii) the loss of key executives.
Copies of the Form 10-K and the other periodic reports Acadia files with the SEC
are available on the Company`s website at www.acadiarealty.com. Any
forward-looking statements in this press release speak only as of the date
hereof. Acadia expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements contained
herein to reflect any change in Acadia's expectations with regard thereto or
change in events, conditions or circumstances on which any such statement is
based. 

(Financial Highlights Follow)

                                                                                                                                                       
 ACADIA REALTY TRUST AND SUBSIDIARIES                                                                                                                  
 
Financial Highlights 1                                                                                                                               
 
For the Quarters and Years ended December 31, 2012 and 2011                                                                                          
 
(dollars and Common Shares in thousands, except per share data)                                                                                      
                                                                                                                                                       
                                                             For the Quarters ended                        For the Years ended                         
                                                             December 31,                                  December 31,                                
 Revenues                                                    2012                       2011               2012                        2011            
                                                                                                                                                       
 Minimum rents                                               $     27,161               $     20,434       $     99,280                $     79,779    
 Percentage rents                                                  69                         75                 417                         361       
 Mortgage interest income                                          1,863                      1,936              7,879                       11,429    
 Expense reimbursements                                            7,516                      5,727              24,385                      21,141    
 Other property income                                             243                        104                1,009                       694       
 Management fee income                                             289                        508                1,455                       1,674     
 Total revenues                                                    37,141                     28,784             134,425                     115,078   
 Operating expenses                                                                                                                                    
 Property operating                                                8,540                      4,783              25,889                      18,968    
 Real estate taxes                                                 4,862                      3,984              18,811                      15,320    
 General and administrative                                        4,605                      5,935              21,532                      23,066    
 Reserve for notes receivable                                      405                        --                 405                         --        
 Depreciation and amortization                                     9,117                      6,663              32,931                      25,672    
 Total operating expenses                                          27,529                     21,365             99,568                      83,026    
                                                                                                                                                       
 Operating income                                                  9,612                      7,419              34,857                      32,052    
                                                                                                                                                       
 Equity in (loss) earnings of unconsolidated affiliates            (750)                      (1,470)            1,579                       1,555     
 Other interest income                                             37                         57                 148                         276       
 Gain on involuntary conversion of asset                           2,368                      --                 2,368                       --        
 Interest expense and other finance costs                          (7,061)                    (7,259)            (28,768)                    (29,632)  
 (Loss) gain on extinguishment of debt                             (198)                      --                 (198)                       1,268     
 Income (loss) from continuing operations before                   4,008                      (1,253)            9,986                       5,519     
 income taxes                                                                                                                                          
 Income tax benefit (provision)                                    1,698                      (467)              568                         (461)     
 Income (loss) from continuing operations                          5,706                      (1,720)            10,554                      5,058     
                                                                                                                                                       


                                                                                                                                                          
 ACADIA REALTY TRUST AND SUBSIDIARIES                                                                                                                     
 
Financial Highlights 1                                                                                                                                  
 
For the Quarters and Years ended December 31, 2012 and 2011                                                                                             
 
(dollars and Common Shares in thousands, except per share data)                                                                                         
                                                                                                                                                          
                                                              For the Quarters ended                          For the Years ended                         
                                                              December 31,                                    December 31,                                
                                                              2012                        2011                2012                        2011            
 Discontinued operations:                                                                                                                                 
 Operating income from discontinued operations                      3,167                       1,763               10,720                      8,752     
 Loss on debt extinguishment                                        (2,541)                     --                  (2,541)                     --        
 Impairment of asset                                                --                          --                  --                          (6,925)   
 Gain on sale of property                                           62,618                      14,332              71,203                      46,830    
 Income from discontinued operations                                63,244                      16,095              79,382                      48,657    
 Net income                                                         68,950                      14,375              89,936                      53,715    
 Loss (income) attributable to noncontrolling interests:                                                                                                  
 Continuing operations                                              2,976                       5,182               13,480                      13,655    
 Discontinued operations                                            (50,650)                    (11,670)            (63,710)                    (15,815)  
 Net loss (income) attributable to noncontrolling                                                                                                         
 interests                                                          (47,674)                    (6,488)             (50,230)                    (2,160)   
                                                                                                                                                          
 Net income attributable to Common Shareholders               $     21,276                $     7,887         $     39,706                $     51,555    
                                                                                                                                                          
 Supplemental Information                                                                                                                                 
 Income from continuing operations attributable to                                                                                                        
 Common Shareholders                                          $     8,682                 $     3,462         $     24,034                $     18,713    
 Income from discontinued operations attributable to                                                                                                      
 Common Shareholders                                                12,594                      4,425               15,672                      32,842    
 Net income attributable to Common Shareholders               $     21,276                $     7,887         $     39,706                $     51,555    
                                                                                                                                                          
 Net income attributable to Common Shareholders per                                                                                                       
 Common Share - Basic                                                                                                                                     
 Net income per Common Share - Continuing                                                                                                                 
 operations                                                   $     0.17                  $     0.08          $     0.51                  $     0.45      
 Net income per Common Share - Discontinued                                                                                                               
 operations                                                         0.25                        0.11                0.34                        0.80      
 Net income per Common Share                                  $     0.42                  $     0.19          $     0.85                  $     1.25      
 Weighted average Common Shares                                     50,047                      41,785              45,854                      40,697    
                                                                                                                                                          
 Net income attributable to Common Shareholders per                                                                                                       
 Common Share - Diluted 2                                                                                                                                 
 Net income per Common Share - Continuing                                                                                                                 
 operations                                                   $     0.17                  $     0.08          $     0.51                  $     0.45      
 Net income per Common Share - Discontinued                                                                                                               
 operations                                                         0.25                        0.11                0.34                        0.80      
 Net income per Common Share                                  $     0.42                  $     0.19          $     0.85                  $     1.25      
 Weighted average Common Shares                                     50,583                      42,066              46,335                      40,986    


                                                                                                                                                               
 ACADIA REALTY TRUST AND SUBSIDIARIES                                                                                                                          
 
Financial Highlights 1                                                                                                                                       
 
For the Quarters and Years ended December 31, 2012 and 2011                                                                                                  
 
(dollars and Common Shares in thousands, except per share data)                                                                                              
 RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS 3                                                                                                       
                                                                                                                                                               
                                                                    For the Quarters ended                         For the Years ended                         
                                                                    December 31,                                   December 31,                                
                                                                    2012                        2011               2012                        2011            
                                                                                                                                                               
                                                                                                                                                               
 Net income attributable to Common Shareholders                     $     21,276                $     7,887        $     39,706                $     51,555    
                                                                                                                                                               
 Depreciation of real estate and amortization of leasing costs                                                                                                 
 (net of noncontrolling interests' share):                                                                                                                     
 Consolidated affiliates                                                  6,782                       4,692              23,090                      18,274    
 Unconsolidated affiliates                                                426                         477                1,581                       1,549     
 Gain on sale and involuntary conversion of asset (net of                                                                                                      
 noncontrolling interests' share):                                                                                                                             
 Consolidated affiliates                                                  (14,060)                    (2,356)            (15,451)                    (31,716)  
 Unconsolidated affiliates                                                --                          --                 (609)                       --        
 Impairment of asset 3                                                    --                          --                 --                          2,616     
 Income attributable to noncontrolling interests` in                                                                                                           
 Operating Partnership                                                    241                         99                 510                         635       
 Distributions - Preferred OP Units                                       4                           5                  18                          18        
 Funds from operations                                              $     14,669                $     10,804       $     48,845                $     42,931    
 Funds from operations per share - Diluted                                                                                                                     
 Weighted average Common Shares and OP Units 4                            51,150                      42,559             46,940                      41,467    
 Funds from operations, per share                                   $     0.29                  $     0.25         $     1.04                  $     1.04      
                                                                                                                                                               


                                                                                                                                                      
 ACADIA REALTY TRUST AND SUBSIDIARIES                                                                                                                 
 
Financial Highlights 1                                                                                                                              
 
For the Quarters and Years ended December 31, 2012 and 2011                                                                                         
 
(dollars in thousands)                                                                                                                              
 RECONCILIATION OF OPERATING INCOME TO NET PROPERTY                                                                                                   
 OPERATING INCOME ("NOI") 3                                                                                                                           
                                                                                                                                                      
                                                            For the Quarters ended                        For the Years ended                         
                                                            December 31,                                  December 31,                                
                                                            2012                       2011               2012                        2011            
                                                                                                                                                      
 Operating income                                           $     9,612                $     7,419        $     34,857                $     32,052    
                                                                                                                                                      
 Add back:                                                                                                                                            
 General and administrative                                       4,605                      5,935              21,532                      23,066    
 Depreciation and amortization                                    9,117                      6,663              32,931                      25,672    
 Impairment of asset                                              405                        --                 405                         --        
                                                                                                                                                      
 Less:                                                                                                                                                
 Management fee income                                            (289)                      (508)              (1,455)                     (1,674)   
 Mortgage interest income                                         (1,863)                    (1,936)            (7,879)                     (11,429)  
 Straight line rent and other adjustments                         (2,549)                    (1,738)            (10,261)                    (6,644)   
                                                                                                                                                      
 Consolidated NOI                                                 19,038                     15,835             70,130                      61,043    
                                                                                                                                                      
 Noncontrolling interest in NOI                                   (2,546)                    (2,174)            (9,275)                     (8,875)   
 Pro-rata share of NOI                                            16,492                     13,661             60,855                      52,168    
 Operating Partnerships` interest in Opportunity Funds            (1,947)                    (2,184)            (7,274)                     (7,573)   
 NOI - Core Portfolio                                       $     14,545               $     11,477       $     53,581                $     44,595    
                                                                                                                                                      


                                                                                    
                                                                                    
 SELECTED BALANCE SHEET INFORMATION                                                 
                                As of                                               
                                December 31,                    December 31,        
                                2012                            2011                
                                (dollars in thousands)                              
                                                                                    
 Cash and cash equivalents      $        91,813                 $        89,812     
 Rental property, at cost                1,249,140                       880,377    
 Total assets                            1,908,440                       1,653,319  
 Notes payable                           727,978                         648,669    
 Total liabilities                       838,184                         884,010    
                                                                                    


ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights
For the Quarters and Years ended December 31, 2012 and 2011
(dollars and Common Shares in thousands, except per share data)

Notes:

1 For additional information and analysis concerning the Company`s results of
operations, reference is made to the Company`s Quarterly Supplemental Disclosure
furnished on Form 8-K to the SEC and included on the Company`s website at
www.acadiarealty.com. 

2 Reflects the potential dilution that could occur if securities or other
contracts to issue Common Shares were exercised or converted into Common Shares.
The effect of the conversion of Common OP Units is not reflected in the above
table as they are exchangeable for Common Shares on a one-for-one basis. The
income allocable to such units is allocated on the same basis and reflected as
noncontrolling interests in the consolidated financial statements. As such, the
assumed conversion of these units would have no net impact on the determination
of diluted earnings per share. 

3 The Company considers funds from operations ("FFO") as defined by the National
Association of Real Estate Investment Trusts ("NAREIT") and net property
operating income ("NOI") to be appropriate supplemental disclosures of operating
performance for an equity REIT due to their widespread acceptance and use within
the REIT and analyst communities. FFO and NOI are presented to assist investors
in analyzing the performance of the Company. They are helpful as they exclude
various items included in net income that are not indicative of the operating
performance, such as gains (losses) from sales of depreciated property,
depreciation and amortization, and impairment of depreciable real estate. In
addition, NOI excludes interest expense. The Company`s method of calculating FFO
and NOI may be different from methods used by other REITs and, accordingly, may
not be comparable to such other REITs. FFO does not represent cash generated
from operations as defined by generally accepted accounting principles ("GAAP")
and is not indicative of cash available to fund all cash needs, including
distributions. It should not be considered as an alternative to net income for
the purpose of evaluating the Company`s performance or to cash flows as a
measure of liquidity. Consistent with the NAREIT definition, the Company defines
FFO as net income (computed in accordance with GAAP), excluding gains (losses)
from sales of depreciated property, plus depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint ventures. During
2012, NAREIT issued a clarification to the definition of FFO whereby impairment
charges for depreciable real estate are to be excluded in the calculation of
FFO. Accordingly, 2011 FFO has been restated to exclude an impairment charge of
$2.6 million. 

4 In addition to the weighted average Common Shares outstanding, basic and
diluted FFO also assume full conversion of a weighted average 566 and 493 OP
Units into Common Shares for the quarters ended December 31, 2012 and 2011,
respectively and 604 and 480 OP Units into Common Shares for the years ended
December 31, 2012 and 2011, respectively. Diluted FFO also includes the assumed
conversion of Preferred OP Units into 25 Common Shares for each of the quarters
and years ended December 31, 2012 and 2011. In addition, diluted FFO also
includes the effect of 511 and 256 employee share options, restricted share
units and LTIP units for the quarters ended December 31, 2012 and 2011,
respectively and 456 and 264 employee share options, restricted share units and
LTIP units for the years ended December 31, 2012 and 2011, respectively.

Acadia Realty Trust
Jon Grisham, 914-288-8100 



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