Acadia Realty Trust (AKR) Financials

Acadia Realty Trust (NYSE: AKR) has demonstrated several noteworthy financial trends over the last four years through its quarterly income statements, cash flow statements, and balance sheets.

Positive Trends:

• Consistent growth of total assets since Q3 2022, increasing from approximately $4.36 billion to $4.74 billion by Q1 2025, indicating asset base expansion.
• Increase in common equity from about $1.7 billion in Q3 2022 to approximately $2.3 billion in Q1 2025, reflecting strengthened shareholder equity.
• Improving net income attributable to common shareholders observed in Q1 2025 with a positive $1.61 million, reversing recent losses recorded in 2024.
• Cash dividends per share increased gradually from $0.18 in mid-2022 and 2023 to $0.20 in Q1 2025, which could be attractive to income-focused investors.
• Operating cash flows remain generally positive and strong, for example, $25.9 million in Q1 2025 and above $30 million in several prior quarters, indicating healthy operations cash generation.

Neutral Trends:

• Net occupancy & equipment expense has remained relatively stable, hovering around $15 million to $19 million quarterly, reflecting steady property management costs.
• Depreciation expense was consistently around $33 million to $39 million quarterly, an expected non-cash expense related to asset base size.
• Issuance and repayment of debt and equity fluctuate quarterly, reflecting active capital management without a clear directional trend.

Negative Trends:

• Net interest expense has increased, with Q1 2025 recording a negative $17.15 million, up from approximately negative $15 million in late 2024 and nearly negative $20 million in 2023, suggesting rising interest costs, likely due to increased debt or higher interest rates.
• The company experienced several quarters of net losses continuing into early 2025, including a consolidated net loss of $11.66 million in Q1 2025, which is concerning compared to positive earnings in 2023 and late 2024.
• Persistent impairment and other special charges in recent quarters, including a $6.45 million impairment charge and $9.62 million other special charges in Q1 2025, which negatively impact profitability.
• Large fluctuations in non-operating income/expense, including significant negative amounts such as -$28.16 million in Q4 2023 and -$58.44 million in Q3 2022, contributing to volatility in bottom-line results.
• Noncontrolling interest losses, particularly noted in Q1 2025 (-$13.27 million) and other quarters, reduce net income attributable to shareholders.

Summary: Acadia Realty Trust has grown its asset base and equity steadily over the past four years while maintaining solid operating cash flow. However, the company’s profitability has faced headwinds lately due to rising interest expenses, impairment charges, and volatile non-operating income. The recent slight return to profitability in earnings attributable to common shareholders and increased dividends suggest potential stabilization. Investors should watch for continued management of debt costs and resolution of special charges to improve future earnings quality.