Stock to watch: Acadia Realty Trust (NYSE: AKR)

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On 15 October 2018, Acadia Realty Trust (AKR) above/below +0.71% and ended at $26.85. The stock’s market capitalization arrived at $2.321B and total traded volume was 275,413 shares. The stock has a 52-week highest price of $30.57 and its 52-week lowest price was called at $21.34. During last trade, its maximum trading price was registered $27.17 and it’s the minimum trading price was noted $26.57.

Acadia Realty Trust (AKR) recently stated operating results for the quarter ended June 30, 2018. All per share amounts are on a fully-diluted basis. Acadia operates dual platforms, comprised of a high-quality core real estate portfolio (“Core Portfolio”), which owns and operates assets in the nation’s most dynamic urban and street-retail corridors, and a series of discretionary, institutional funds (“Funds”) that target opportunistic and value-add investments.

Highlights

  • Earnings:Generated earnings per share of $0.09 for the second quarter; FFO per share was $0.34 for the second quarter including about $0.01 from fund transnational activity
  • Core Portfolio Operating Results: Solid Core operating fundamentals
    • Achieved over 75% of our 2018 leasing goals to date based on NOI, representing about $6.0M of annualized NOI
    • Rent growth of 8.7% on new and renewal leases for the quarter on a cash basis
    • Stated 95.3% leased occupancy as of June 30, 2018
    • Higher than anticipated same-property net operating income growth of 0.8% for the second quarter (not including redevelopment)
  • Fund Acquisition Activity:During July, Fund V completed a $59.3M acquisition
  • Fund Disposition Activity:As before stated, Fund II completed a $26.0M disposition during the second quarter; Fund IV also has $8.1M of dispositions under contract
  • Balance Sheet:The Company repurchased an additional $23.1M of its shares during the three months ended June 30, 2018. Aggregate purchases were $55.1M for the six months ended June 30, 2018 at an average cost of about $24 per share on a leverage-neutral basis. As a result of the Company’s successful capital recycling efforts to date, Core net debt reduced by $19.9M during 2018
  • Guidance: Following its continued strong leasing efforts and its portfolio performance to date, the Company reaffirms its 2018 guidance of FFO per share of $1.33 to $1.45 and same-property net operating income growth of 1-3%, including 2-7% growth in the second half of the year

FINANCIAL RESULTS

  • A complete reconciliation, in dollars and per share amounts, of net income to FFO is included in the financial tables of this release.

Net Income

  • Net income attributable to ordinary shareholders for the quarter ended June 30, 2018 was $7.7M, or $0.09 per share. Net income attributable to ordinary shareholders for the quarter ended June 30, 2017 was $12.1M, or $0.14 per share, which includes $4.9M, or $0.06 per share, of incremental interest income within the Structured Finance business and the Company’s $0.8M share, or $0.01 per share, of gains related to the disposition of an unconsolidated Fund property.
  • Net income attributable to ordinary shareholders for the six months ended June 30, 2018 was $15.1M, or $0.18 per share. Net income attributable to ordinary shareholders for the six months ended June 30, 2017 was $27.7M, or $0.33 per share, which includes $10.2M, or $0.12 per share, of incremental interest income within the Structured Finance business and the Company’s $3.5M share, or $0.04 per share, of gains related to the dispositions of unconsolidated Fund properties.

FFO

  • Consistent with our expectations, FFO for the quarter ended June 30, 2018 was $29.9M, or $0.34 per share contrast to $33.3M, or $0.37 per share for the quarter ended June 30, 2017. The decrease in FFO for the quarter is due primarily to a decrease of $4.9M, or $0.06 per share, of interest income following the anticipated repayments within the Structured Finance business partially offset by the favorable impact of acquisitions and fund transnational activity.
  • FFO for the six months ended June 30, 2018 was $59.0M, or $0.67 per share contrast to $68.7M, or $0.77 per share, for the six months ended June 30, 2017. The decrease in FFO for the six months is due primarily to a decrease of $10.2M, or $0.12 per share, of interest income following the anticipated repayments within the Structured Finance business.

 

Return on assets ratio of the Company was 1.20% and return on equity ratio was 3.20% while its return on investment ratio was 0.80%. AKR net profit margin of the firm was recorded at 19.00% and operating profit margin was calculated at 7.60% while gross profit margin was measured as 68.60%. Beta factor, which measures the riskiness of the security, was registered at 0.34.

 

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