This article first appeared on GuruFocus .
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Same Property NOI Growth:Up 10.2% in Q3 2026; streets up more than 15%, stabilized suburban portfolio up 2.5%.
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Street Portfolio NOI Growth:Chicago up over 20%, SoHo up 16%, Williamsburg up about 10%; streets added more than $3 million of NOI (~$0.02 of FFO) versus last year.
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Full Year 2026 Same Property NOI Guidance:Raised to 7.5%8.5%, a full point above the midpoint of the original 5%9% range.
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FFO as Adjusted (Q3):$0.31 per share, up 7% from $0.29 a year ago.
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FFO as Adjusted (9M 2026):$0.92 per share, up nearly 10% from $0.84 in the prior-year period.
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Full Year 2026 FFO Guidance:Maintained at $1.24$1.26 per share, reflecting two raises from the initial $1.23 midpoint and ~10% growth over 2025.
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Leasing Activity:~$8.4 million in new leases executed, with ~75% of ABR from street and urban markets; average leasing spread of 54% on six spaces marked to market.
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Leasing Pipeline:Over $15 million of additional ABR actively being negotiated.
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Market Rent Growth:Street portfolio rents compounded north of 12% annually since 2023 (range of 8% to 23%); SoHo market rents compounded ~20% annually over three years.
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Same-Store Sales:Street tenant same-store sales CAGR just north of 20% since 2022; street rent-to-sales ratio at a healthy 12%.
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SNO Pipeline:Grew over 30% in Q3 to a record ~$22 million of ABR at share; ~90% concentrated in Street and Urban portfolio; represents ~$0.11 of incremental FFO at full run rate (up from $0.08 last quarter).
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SNO Commencement Timing:Over one-third projected to commence in Q4 2026, another third in Q1 2027 (~70% by end of March), nearly all by end of 2027; expected ~$0.01 incremental FFO per share in Q4, $0.08 in 2027, balance in 2028.
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Acquisitions:~$150 million of Street Retail added in Q3, bringing year-to-date total to $350 million and $850 million over the last two years; target of one penny FFO accretion per $200 million of acquisitions.
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Acquisition Yields:Routinely achieving cash yields north of 6% within three years and north of 7% upon business plan stabilization.
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Liquidity:Over $600 million available; $45 million of cash on hand and $350 million of unsettled forward equity.
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Debt Maturities:No significant debt maturities until 2031.
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Interest Rate Exposure:~$1.2 billion of swaps and caps in place; ~$350 million of unhedged variable rate debt, of which ~$100 million relates to investment management assets expected to be sold, leaving ~$250 million of floating rate debt in the REIT portfolio.
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Leverage Target:6 times debt to EBITDA, inclusive of share of investment management debt.
Release Date: November 02, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Same property NOI grew 10.2% in Q3 2026, with Street portfolio up over 15%, driven by strong tenant demand and fair market value resets.
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Street retail market rents have grown at a 12% annual compounded rate over the past three years, with SoHo up 20% annually, and Acadia Realty Trust ( NYSE:AKR ) captures this growth through fair market value resets every five years.
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Signed Not Open (SNO) pipeline reached a record $22 million ABR, representing $0.11 of incremental FFO at full run rate, with about 90% concentrated in the Street and Urban portfolio.
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Acadia Realty Trust ( NYSE:AKR ) has over $600 million of liquidity, no significant debt maturities until 2031, and manageable interest rate exposure with $1.2 billion of swaps and caps in place.
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Acquisitions of $150 million in Q3 2026 and $350 million year-to-date are accretive to NAV and FFO, with cash yields north of 6% within three years and 7% upon stabilization.
Negative Points
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Higher interest rates have introduced uncertainty in the transaction market, causing modest price reductions and making it harder for deals to pencil, especially in suburban markets.
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Investment management dispositions are causing a timing lag in fees and NOI, offsetting some of the strong same-property NOI growth and limiting FFO upside in 2026.
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North Michigan Avenue asset is currently a drag on earnings, with a couple of pennies of taxes and carry costs, and no costs are being capitalized.
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Acadia Realty Trust ( NYSE:AKR ) has about $350 million of unhedged variable rate debt, with roughly $250 million in the REIT portfolio, exposing it to potential rate increases.
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The company faces competition for Street Retail acquisitions, notably from Blackstone on larger deals, which could pressure pricing and limit future growth opportunities.
Q & A Highlights
Q: Craig Mailman of Citi asked how to think about the incremental $0.06 to $0.08 of FFO from the SNO pipeline coming online in 2027, and whether there are known move-outs or other offsets to that number. A: CFO John Gottfried said there are no known move-outs or unexpected headwinds beyond what has already been discussed. The main offset is the timing lag from investment management dispositions, which the company views as temporary and expects to redeploy. He characterized 2027 as "a strong setup."
Q: Samir Khanal of Bank of America asked for an update on North Michigan, including the remaining investment required and potential earnings contribution, noting it is currently a drag. A: CFO John Gottfried confirmed North Michigan is currently a couple of pennies of drag on earnings from taxes and carry, with no costs being capitalized. EVP of Leasing and Development Alexander Levine added that Nike, Lululemon, and Levi's have all claimed large chunks of space in the last 30 to 60 days, activity is moving north toward 840, and there are competing offers for the Fund IV asset at 717. He called it "another lever of growth" for 2027 and 2028.
Q: Samir Khanal of Bank of America asked why the company raised same-property NOI guidance but maintained FFO guidance, and whether any of the offset could reverse next year. A: CFO John Gottfried said the biggest offset to the roughly 1% incremental same-property growth at the midpoint is the company being a net seller in investment management, which creates a short-term delay in fees and NOI until capital is redeployed. He emphasized this is timing and that the company will pick that back up as the team redeploys capital.
Q: Floris Van Dijkum of Ladenburg Thalmann asked how to quantify the upside from raising Street portfolio occupancy from roughly 93% leased toward the prior peak of 96% to 97%, on both a gross and net basis. A: CFO John Gottfried noted North Michigan is not even included in the current occupancy figure, making it incremental upside. He pointed to Henderson Avenue, DC, and roughly 17,000 square feet of vacancy acquired this quarter in SoHo and Westport as near-term lease-up opportunities. CEO Ken Bernstein added that fair market value resets could be as significant a driver of incremental growth as the lease-up itself, saying the company is not reliant on lease-up or redevelopments alone.
Q: Floris Van Dijkum of Ladenburg Thalmann asked about Henderson Avenue, specifically how the roughly $200 million of remaining cost will be funded and how the timing coincides with rent recognition as leases commence in 2027. A: CFO John Gottfried said forward equity contracts will be drawn down as they expire, with a good chunk timed to the Henderson project, though not perfectly quarter to quarter. Of the roughly $200 million to spend, the company targets a 9% yield, will look at the resulting debt-to-EBITDA, and will rebalance the balance sheet accordingly using equity.
Q: Todd Thomas of KeyBanc asked whether the $0.01 fourth-quarter contribution and $0.06 to $0.08 in 2027 relate solely to the SNO pipeline on vacant space, excluding contractual rent growth, renewals, mark-to-market, financing, and external growth. A: CFO John Gottfried confirmed "100%" that the $0.11 figure in isolation rolls forward only the SNO pipeline and does not include any of the other items mentioned.
Q: Todd Thomas of KeyBanc asked about the Sunset Park loan amendment, including the underwriting rationale for the increased $120 million exposure and any parameters on NOI, debt yield, LTV, or coverage for downside protection. A: CFO John Gottfried explained the company was previously in a mezzanine position on the mixed-use Brooklyn asset, received a $20 million payment reducing its basis, and consolidated to become the entire debt capital stack with no lender able to get in front. He said the borrower added $20 million of incremental equity, the basis is comfortable, and stabilization should reach high single-digit yields, potentially allowing an early exit.
Q: Todd Thomas of KeyBanc asked whether the Sunset Park exposure will remain floating or be hedged with swaps or caps. A: CFO John Gottfried said it is a naturally matched float, since the floating-rate loan will be funded with floating-rate liability. He noted the company manages floating-rate exposure at the portfolio level rather than asset by asset, and the structure provides a natural hedge.
Q: Sydney McEntee of JPMorgan asked where the company is sourcing additional deals amid increased competition, and how it takes advantage of situations like the fully vacant 129 5th Avenue acquisition. A: CEO Ken Bernstein said institutional capital is rotating into open-air retail, but assets with outsized growth mitigate interest rate concerns, and the company is not active where deals do not pencil. CIO Reginald Livingston said the biggest opportunity is leaning into corridors where Acadia already owns, being the first call for sellers and leveraging in-house rent knowledge. Bernstein noted Blackstone competes mainly on single assets above $100 million, while Acadia's tenant waiting-list knowledge is a key edge.
Q: Sydney McEntee of JPMorgan noted 25% cash rent spreads in the quarter and asked how the company thinks about mark-to-market upside from expirations over the next 12 to 18 months in 2027 and 2028. A: CFO John Gottfried said the 25% below-market figure was as of last quarter and should continue to grow as market rents rise and spaces roll in 2027 and 2028. He declined to forecast specific spreads, noting they will vary quarter to quarter depending on which leases come back, but called 25% the baseline.
Q: Anthony Howe of Truist asked which larger-format urban markets are seeing demand flow into slower-to-recover areas, and whether that extends to assets like Sullivan Center and State Street in Chicago. A: CEO Ken Bernstein said the demand increase began with smaller-format luxury and advanced contemporary tenants and has now spread to larger-format players, with significant increases in virtually every market over the last 90 days, including State Street. EVP Alexander Levine said San Francisco momentum started a year ago with TNT and Club Studio, plus a more recent Sprouts lease, and the focus now shifts to
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
