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

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.

 

Carl Davis

Carl Davis - Technology Carl Davis works as an editor and emphasizes around breaking news stories. He has a Master’s Degree of BBA in Accounting and Finance. He is a dynamic worker spending most of his time analyzing earnings reports and observing commodities and results. He loves to play music and go out shopping in his spare time. He prepares staff on the better purposes of writing, editing and getting the news out on time correctly. Also, Carl Davis focuses mainly on the effects of activity on the marketplace. He is an editor and reporter of “Technology” category. Address:  4707 White Oak Drive Independence, MO 64055, United States of America Phone Number:  +1 816 678 7172

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