Acadia Realty Trust Q4 FY2025 earnings call

• Ken Bernstein discussed key initiatives over the past few years, including leasing up vacancies (economic shop occupancy increased from ~81% in 2021 to over 90% today), capturing rental growth from pry loose strategy and fair market resets, redevelopment pipeline (San Francisco assets and Henderson Avenue in Dallas), and external growth initiatives (acquisitions in key corridors like Georgetown, Williamsburg, Green Street, Soho, and new corridors like Bleecker Street and Upper Madison Avenue, with over $700 million invested in the past 24 months). • AJ Levine highlighted record leasing in 2025 driven by retailers' focus on DTC and high-end consumer, notable lease additions, rent growth through lease-up, pry loose, and fair market resets, with tenant sales growth translating to future rent growth. In Q4, signed $3.5 million of ABR with 75% from high-growth markets, including strong lease spreads and retaining tenants through scale. • Reggie Livingston discussed acquisition volumes, with nearly $1 billion of acquisitions in 2025 and to-date, including $500 million in street retail for the REIT portfolio and over $800 million in value-add deals for the investment management platform, and a pipeline of over $150 million of deals under agreement in street retail.

Same property NOI growth was 6.3% for the fourth quarter and 5.7% for the year. The REIT's economic occupancy increased another 30 basis points to 93.9%, with street and urban economic occupancies sequentially increasing an additional 80 basis points during the fourth quarter and 370 basis points over 2025.

• 2026 FFO as adjusted is anticipated to be between $1.21 and $1.25. Same property NOI growth is projected to be 5% to 9% excluding redevelopments, with street anticipated to deliver about 400 basis points of outperformance compared to the suburban portfolio. Factors affecting guidance include rent commencement dates, credit loss assumptions (midpoint assumes ~115 basis points against minimum rents), and the pry loose strategy. Total pro rata NOI including redevelopments and investment management is expected to increase approximately 15% to roughly $230 million at the midpoint compared to 2025's ~$200 million.

• Potential credit loss, with 150 basis points factored in which is conservative relative to prior two years' average of ~50 basis points. • Market competition in acquisition markets. • Interest rate volatility, but the company is well hedged and has no material debt maturities in 2026.

Q: Expand on markets and pricing perspective.

A: Ken Bernstein said markets like New York, SoHo, Williamsburg, DC are exciting, and pricing is tricky due to rent movements; they aim for assets with 5% CAGR over five years. Reggie Livingston added they go through a rigorous process for new markets.

Q: On same store NOI growth swing factors.

A: John Gottfried said factors include rent commencement, credit loss, and pry loose strategy, with pry loose having potential to impact short-term results but accelerate long-term growth.

Q: Thoughts on variables in guidance and upside.

A: John Gottfried said guidance is realistic, with conservatism on active investment side and upside from external growth. Ken Bernstein reinforced pry loose and other drivers will have more impact in later years.

Q: Thoughts on street occupancy and Chicago.

A: John Gottfried said NOI is more relevant than occupancy percentage; Ken Bernstein noted Chicago has strong fundamentals but they may prune assets not part of scale strategy.

Q: Questions on street occupancy, blended rent, and single store investments.

A: John Gottfried said occupancy percentage is less relevant than NOI impact; Ken Bernstein said they are cautious on large single asset deals but open to small bolt-ons in key corridors.

Q: On retailers buying stores from portfolio.

A: Ken Bernstein said it's rare, but retailers are making commitments to corridors, and they'll see if they bid against retailers.