Acadia Realty Trust — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a GAAP net loss of $0.03 per share for the three months ended September 30, 2026, compared to net earnings of $0.03 per share in the same period in 2025; the decrease was primarily driven by a non-cash impairment charge of $11.7 million ($0.08 per share) related to two properties in process of being sold.
• NAREIT FFO was $44.5 million ($0.30 per share) for the quarter, up from $38.6 million ($0.28 per share) in the prior year period.
• FFO As Adjusted was $45.2 million ($0.31 per share) for the quarter, up from $39.7 million ($0.29 per share) in the prior year period.
• REIT Portfolio same-property NOI increased 10.2% year-over-year for the quarter, driven by a 15.2% increase in the street retail portfolio; same-property NOI growth for the nine months ended September 30, 2026, was 8.3%.
• Total revenues were $94.98 million for the quarter, down from $101.01 million in the prior year period.
• Net debt to annualized adjusted EBITDA was 5.8x as of September 30, 2026; adjusted for a full year of EBITDA from 2026 transaction activity, the ratio was 5.6x.
• The Company has no significant REIT Portfolio debt maturities until 2030.

Guidance and Future Outlook:

• Maintained full-year NAREIT FFO guidance of $1.19-$1.21 per share and 2026 FFO As Adjusted guidance of $1.24-$1.26 per share.
• Revised full-year 2026 net earnings per share guidance to $0.29-$0.30 from the prior range of $0.40-$0.41.
• Anticipates full-year 2026 same-property NOI growth of 7.5% to 8.5%.
• Henderson Avenue development tenant openings are expected to begin in 2027, with NOI contributions weighted toward the second half of 2027.
• Management expects strong internal growth to continue into 2027 and beyond, supported by ample liquidity and investment capacity.

Business Segments and Product Lines:

• REIT Portfolio: Completed approximately $152 million of accretive street retail acquisitions during the quarter, bringing year-to-date acquisition volume to $775 million ($436 million at the Company's share).
• Acquisitions: Acquired 44 Main Street in Westport ($23 million), 69-73 Greene Street in Soho ($66 million), 385 Bleecker Street and 371-373 Bleecker Street in West Village ($20 million), 171-173 Greenwich Avenue in Greenwich ($10 million), and 8800-8804 Melrose Avenue in West Hollywood ($30 million).
• Leasing: Delivered GAAP and cash leasing spreads on new leases of 98% and 62%, respectively. Signed a lease for the entirety of 129 Fifth Avenue in Manhattan's Flatiron District within 30 days at a rent well above underwriting, projecting a yield on cost in excess of 9%.
• Development: Leases executed or in advanced stages of negotiation at the Henderson Avenue development in Dallas reached approximately 90% of retail GLA (95% including stabilized portfolio); total estimated investment is $210 million to $235 million, with approximately $144 million invested as of September 30, 2026.
• Investment Management: Completed a disposition of one property for $8 million (Company's share approx. $2 million); year-to-date dispositions total approx. $723 million, including $504 million in recapitalizations (Company's share $144 million), generating a weighted average gross equity multiple of approx. 1.9x.
• Pipeline: Grew the signed-not-open (SNO) pipeline 32% to $21.8 million, up from $16.5 million at June 30, 2026, driven by $8.4 million of new leasing.

Market and Competitive Landscape:

• Same-property NOI growth in the street retail portfolio exceeded 15% for the quarter, ranking among the strongest in the Company's history.
• Leasing momentum continues across key street retail corridors, with demand broadening into larger-format urban markets.
• The Company is the largest owner on Henderson Avenue in Dallas, with a portfolio spanning more than a mile.
• Economic occupancy decreased 20 basis points to 94.2% and leased occupancy decreased 20 basis points to 95.5% as of September 30, 2026, primarily due to vacancy in newly acquired street retail properties.

Risks and Challenges:

• A non-cash impairment charge of $11.7 million impacted net earnings for the quarter.
• Occupancy declines were attributable to approximately 16,600 square feet of vacancy in newly acquired properties expected to be leased in the near term.
• Forward-looking statements identify risks including macroeconomic conditions, geopolitical instability, tariff increases, rising inflation, and changes in interest rates.
• Risks include the ability to identify, underwrite, finance, and integrate acquisitions, as well as the ability to obtain expected financial results from development projects.
• Potential risks include tenant renewal and re-leasing challenges, environmental liabilities, natural disasters, and cybersecurity/AI-related risks.

Management Commentary and Tone:

• Kenneth F. Bernstein, President and CEO, stated that the Company delivered third-quarter same-property NOI growth among the strongest in its history, led by street retail growth exceeding 15%.
• Management noted that top-line growth is translating to the bottom line, with FFO As Adjusted up nearly 10% year-over-year.
• Bernstein highlighted that the Company acquired approximately $150 million of street retail during the quarter, adding properties accretive to key metrics and strengthening scale advantages.
• Management expressed confidence in the Company's position to accelerate growth as compelling opportunities emerge, citing strong internal growth, ample liquidity, and meaningful investment capacity.

Other Key Points:

• Settled approximately 0.8 million shares of previously issued forward equity contracts for cash proceeds of approximately $15.6 million; unsettled contracts to sell 17.0 million shares remain for aggregate net proceeds of approximately $351 million.
• In a subsequent event in October 2026, the Company received $20 million via an amendment and extension of a structured finance loan for a Sunset Park, Brooklyn property, investing an additional $120 million to consolidate the entire debt capital stack into a new $200 million financing.
• The Company has approximately $110 million of dispositions ($22 million at the Company's share) under contract for sale.
• The Henderson Avenue development includes an additional parcel acquired in September 2026 for approximately $3 million, with anticipated future development costs of approximately $7 million.
• The projected yield on cost for the Henderson Avenue project is 8% to 10%.