Exhibit 99.1

                  Acadia Realty Trust Reports Fourth
             Quarter and Full Year 2005 Operating Results

    NEW YORK--(BUSINESS WIRE)--March 1, 2006--Acadia Realty Trust
(NYSE: AKR - "Acadia" or the "Company"), a real estate investment
trust ("REIT") today reported operating results for the quarter and
year ended December 31, 2005. All per share amounts discussed below
are on a fully diluted basis.

    Fourth Quarter and Full Year 2005 Highlights

    FFO continues to increase

    --  Funds from operations ("FFO") per share of $0.26 for fourth
        quarter 2005 compared to $0.25 for fourth quarter 2004

    --  Full year 2005 FFO consistent with upper end of previous
        guidance of $1.09 compared to $0.98 for 2004

    --  Earnings per share ("EPS") from continuing operations for
        fourth quarter 2005 of $0.15 compared to $0.11 for 2004

    --  Full year EPS from continuing operations of $0.67 for 2005
        compared to $0.45 for 2004

    Same Store NOI up 5.7% - Wholly-owned portfolio occupancy
increases to an all-time high of 94.3%

    --  Occupancy up 200 basis points over 2004 and 40 basis points
        over third quarter 2005

    --  Same-store net operating income for the retail portfolio up
        2.9% for the fourth quarter and 5.7% for full year 2005

    --  Rent spreads of 10.7% on new and renewal leases which
        commenced during fourth quarter 2005 over the previous rents

    Balance sheet ratios remain strong - Dividend increased

    --  Dividend increased by 7.25% commencing with fourth quarter
        dividend

    --  Maintained conservative dividend payout ratio for the year
        2005 of 63% of FFO

    --  32% debt to total market capitalization

    --  3.5 to 1 fixed-charge coverage for the year

    External growth continues with expansion of Urban/Infill
redevelopment pipeline and additional acquisition activity

    --  Acquired two New York properties during fourth quarter; 216th
        Street redevelopment in Manhattan and Liberty Avenue project
        in Queens

    --  Also acquired leasehold interest in Neiman Marcus location in
        Oakbrook (Chicago), Illinois

    --  Acquired two assets in Chicago and New Jersey in connection
        with asset recycling activities

    Harvesting of Fund I and RCP Venture continues with
recapitalization of Brandywine Portfolio at significant profit and
Mervyns distributions

    --  Recapitalization of Brandywine Portfolio returned entire Fund
        I investors' invested capital and preferred return - Acadia
        will now receive additional 20% interest ("Promote") in all
        future Fund I earnings and distributions

    --  Mervyns investment returned 170% of invested capital following
        previously announced sale of portion of portfolio and
        refinancing activities; earns $1.0 million of Promote income
        for the fourth quarter 2005

    Fourth Quarter and Year-End Operating Results

    FFO, a widely accepted measure of REIT performance, for the
quarter ended December 31, 2005 was $8.8 million, or $0.26 per share,
compared to $8.0 million, or $0.25 per share for the fourth quarter
2004. FFO for the year ended December 31, 2005 was $36.2 million, or
$1.09 per share compared to $30.3 million, or $0.98 per share, for
2004.
    Earnings per share from continuing operations on a fully diluted
basis was $0.15 for fourth quarter 2005 compared to $0.11 for fourth
quarter 2004. For the year ended December 31, 2005 and 2004, earnings
per share from continuing operations was $0.67 and $0.45,
respectively.
    In comparing the full year results for 2005 and 2004, management
fee income increased $6.7 million, or approximately 140%, for the year
ended December 31, 2005 primarily due to i) the launching of Fund II
during mid-2004, ii) the Company's recognition of $1.0 million of
Promote income on the Mervyns investment and iii) the acquisition of
additional rights to fees earned under certain management contracts
from Klaff Retail Management Services during 2005. As anticipated,
this increase was partially offset by a $4.9 million increase in
general and administrative expenses. Equity in earnings of
unconsolidated partnerships increased $6.4 million for the same
periods primarily as a result of the Company's share of the gain
realized by Mervyns. Interest income increased by $2.1 million
primarily due to Acadia's preferred equity investment in Levitz.

    Portfolio Activity - Wholly-Owned Portfolio Occupancy Reaches
94.3% and Same-Store NOI Up 5.7%

    On a year-over-year basis, Acadia increased its portfolio
occupancy by 200 basis points. Year-end 2005 occupancy was 94.3%
compared to 92.3% at year-end 2004 and 87.6% for 2003. On a same-store
basis, year-end 2005 occupancy increased 150 basis points over 2004
occupancy of 92.8% and 400 basis points over 2003 occupancy of 90.3%.
On a sequential basis, year-end 2005 occupancy increased 40 basis
points from that of third quarter 2005.
    Combined occupancy within the operating joint venture portfolios
remained high at 96.8% for fourth quarter 2005, which was comparable
with third quarter 2005 of 96.9% and fourth quarter 2004 occupancy of
96.8%.
    Same store net operating income ("NOI") for the retail portfolio
increased 5.7% for the year 2005 over 2004. The favorable variance was
driven primarily from increased rents in the core portfolio from
leasing and redevelopment activities. Although revenue growth was
comparable for fourth quarter 2005 to that of the entire year, NOI
growth was 2.9% over fourth quarter 2004 primarily as a result of the
timing of certain expenses in fourth quarter 2005.
    During the fourth quarter 2005, Acadia executed new and renewal
leases at an average increase of 10.7% over the previous base rents on
a cash basis.

    Balance Sheet - Low Interest Rate Exposure

    During the fourth quarter, Acadia continued reducing its interest
rate exposure by locking in interest rates at 5.5% and extending the
maturity to ten years on $34.0 million of debt. As a result of this
and a $20.5 million refinancing completed during first quarter 2006,
over 95% of the Company's total mortgage debt, inclusive of long-term
interest rate swaps and the Company's pro-rata share of joint venture
debt is now fixed-rate. This has been accomplished while maintaining a
blended cost of debt of 5.7%, as compared to 95% being fixed-rate as
of the beginning of the year at a 5.9% blended cost of debt.
    For 2005, the strength of Acadia's balance sheet was evidenced by
continued strong financial ratios which include the Company's pro-rata
share of unconsolidated joint venture debt and interest expense as
follows:

    --  Debt to total market capitalization at year-end was 32%

    --  Fixed-charge ratio (EBITDA / interest expense plus preferred
        distributions) was 3.5 and 3.2 times for the year and fourth
        quarter 2005, respectively

    --  Dividend payout ratio for the year and fourth quarter 2005 was
        63% and 68% of FFO, respectively

    --  $49 million currently remains available under existing credit
        facilities to fund anticipated capital requirements

    Dividend Increase - 7.25% Increase for Fourth Quarter 2005 -
Follows 7.8% Increase in First Quarter 2004 and 11.5% Increase in 2003

    During the fourth quarter, Acadia's Board of Trustees approved an
increase in Acadia's quarterly dividend to $0.185 per share, which
represents a 7.25% increase over the $0.1725 quarterly dividend paid
by Acadia during 2005. This represents a $0.05 increase on an annual
basis, $0.69 to $0.74, and was effective for the dividend paid January
13, 2006. Acadia has now increased its dividend by an average of 9%
over the past five years. Even after the recent dividend increase,
Acadia expects to maintain its historically conservative payout ratio
for 2006.

    External Growth Continues with Continued Expansion of Urban/Infill
Redevelopment Pipeline and Other Activities

    Fund II - New York Urban/Infill Redevelopment Program expanded to
a total of seven projects

    Since announcing the launching of its New York Urban/Infill
Redevelopment Program, in conjunction with its partner P/A Associates,
in 2004, the Company has added a total of seven properties to the
program, one of which is currently under contract and two that were
added during the fourth quarter.
    During December 2005, Fund II acquired the remaining 40-year term
of a leasehold interest in land located at Liberty Avenue and 98th
Street in Queens (Ozone Park), NY. The development plans for this
property includes 30,000 square feet of retail anchored by a CVS drug
store and a 98,500 square foot self-storage facility to be operated by
Storage Post. Acadia will be a partner in the self-storage complex
with Storage Post, which is anticipated to be a partner in future
retail projects in New York City where self storage will be a
potential component of the redevelopment. The total cost of the
redevelopment is expected to be approximately $13 million. The CVS
lease has been executed and construction on this project has
commenced.
    Also during December 2005, Fund II acquired a 65,000 square foot
parking garage located at 10th Avenue and 216th Street in the Inwood
section of Manhattan. The Company plans to redevelop the building into
a 60,000 square foot office building and is finalizing a transition
where it would be occupied by an agency of the City of New York, which
is a current tenant at another Acadia Urban/Infill Redevelopment
project. Inclusive of acquisition costs, total costs for the project,
which also includes a 100-space rooftop parking deck, are anticipated
to be $25 million.
    In addition to the above Urban/Infill projects, in November 2005,
Fund II acquired a ground lease interest in a 112,000 square foot
building occupied by Neiman Marcus. The Property is located at
Oakbrook Center, a super-regional Class A mall located in the Chicago
Metro area. The ground lease was acquired for $6.9 million, including
closing and other acquisition costs, which represents a 10.7% cap rate
based on projected 2006 NOI.

    Additional Urban/Infill investments

    In addition to the above acquisitions made through Fund II, Acadia
closed on two additional investments, which were made directly through
the Company, during January of 2006. As previously anticipated, Acadia
closed on a 20,000 square foot retail building in the Lincoln Park
district in Chicago. Located on the corner of Clark Street and
Diversey Parkway, the property was acquired for $9.8 million. Tenants
include Starbucks, Nine West, Vitamin Shoppe, The Body Shop, Papyrus
and Cold Stone Creamery. Along with its strong location, the property
has significant long-term growth potential. The property was acquired
from an affiliate of the Klaff Organization, Acadia's joint-venture
partner in the Company's RCP Venture.
    In January 2006, Acadia also acquired a 60% interest in the A&P
Shopping Plaza located in Boonton, New Jersey. The property, which is
100% occupied and located in northwestern New Jersey, is a 63,000
square foot shopping center anchored by a 49,000 square foot A&P
Supermarket. The remaining 40% interest is owned by a principal of P/A
Associates, the Company's partner in its Urban/Infill Redevelopment
Program. The interest was acquired for $3.2 million, equating to a cap
rate of 8.0% based on projected 2006 NOI.

    Harvesting of Fund I Continues with Recapitalization of Brandywine
Portfolio at Significant Profit

    As previously announced, Acadia recapitalized its one million
square foot Wilmington, Delaware shopping center portfolio through a
merger of interests at an implied value of $211 million, as compared
to Fund I's cost basis of $108 million . Acadia has retained its
existing 22.2% interest and continues to operate the portfolio and
earn fees for such services.
    At the closing, the Fund I investors received a return of all of
their invested capital and accumulated preferred return in the fund,
thus triggering Acadia's 20% Promote interest in all future
distributions of proceeds from the refinancing of the investor's
bridge loans provided in the Brandywine transaction. Additionally
there are 32 remaining Fund I assets, comprising approximately 2
million square feet, in which Acadia's ownership interest has
increased from 22.2% to 37.8%.

    RCP Venture - Mervyns Investment Returns 170% of Invested Capital

    In 2004, Acadia formed the Retailer Controlled Property Venture
("RCP Venture") and completed its first investment with its
participation in the acquisition of Mervyns Department Stores. A total
of $23.2 million was invested by Funds I and II. Following the
previously announced sales of a portion of the Mervyns portfolio and
the refinancing of its remaining assets, Funds I and II received a
total distribution of $42.7 million. In addition to its pro-rata
share, Acadia received a Promote distribution of $1.0 million.

    Outlook - Earnings Guidance for 2006

    On a fully diluted basis, the Company currently forecasts its 2006
FFO will range from $1.14 to $1.19 per share. 2006 earnings per share
is expected to range from $0.59 to $0.64. While other factors may
impact earnings, Acadia's 2006 earnings guidance is based primarily on
the following assumptions:

    - Same Property Occupancy and NOI

    The Company's same property portfolio (including joint venture
properties on a pro-rata basis) is expected to experience stable NOI
growth of approximately 2.0% to 4.0% for 2006.

    - Acquisitions

    The Company expects to generate between $0.02 to $0.025 of FFO
from external growth initiatives.

    - Fee Income and General and Administrative ("G&A") Expense

    Net fee income (net of G&A expense and inclusive of Promote
income) is projected to provide between $0.00 to $0.02 of FFO growth.
    The following is a reconciliation of the calculation of FFO per
diluted share and earnings per diluted share:



Guidance Range for 2006                                    Low   High
- -----------------------                                   ------------
Earnings per diluted share                                $0.59 $0.64
Depreciation of real estate and amortization of leasing
 costs:
   Wholly owned and consolidated partnerships              0.43  0.43
   Unconsolidated  partnerships                            0.12  0.12
                                                          ------------
Funds from operations                                     $1.14 $1.19
                                                          ============


    Management Comments

    Commenting on the results for the quarter and year, Kenneth
Bernstein, President and CEO, stated, "2005 was another strong year
for Acadia on all fronts. Both in the fourth quarter and throughout
the year our team was successful in driving the key components of our
business plan. First, we continued to post strong property level NOI
growth while also enhancing the quality of our core portfolio through
continued asset recycling. We continued to drive rents while
increasing portfolio occupancy to an all time high. Second, we further
enhanced the strength of our balance sheet by taking advantage of the
flat yield curve and virtually eliminating our exposure to short term
and floating rate debt. All of our balance sheet and operating ratios
remain strong and prepare us for future growth opportunities. Third,
we continued to expand on our external growth platform with continued
exciting activity in both our NY Urban/Infill program and our RCP
venture which are planting the seeds for important future growth
opportunities. Most significantly, we began harvesting some of the
embedded profits from our earlier investment activity with the
recapitalization of our Delaware portfolio which has triggered
important profit participations for Acadia that can contribute to our
growth for years to come."

    Investor Conference Call

    Management will conduct a conference call March 2, 2006 at 2:00 PM
ET to review the Company's earnings and operating results. The live
conference call can be accessed by dialing 866-800-8648
(internationally 617-614-2702). No pass-code is required. The call
will also be webcast and can be accessed in a listen-only mode at
Acadia's web site at acadiarealty.com.
    If you are unable to participate during the live webcast, the call
will be archived and available on Acadia's website. Alternatively, to
access the replay by phone, dial 888-286-8010 (internationally
617-801-6888). The passcode will be 15913446. The phone replay will be
available through Thursday March 9, 2006.
    Acadia Realty Trust, headquartered in White Plains, NY, is a fully
integrated and self-managed real estate investment trust which
specializes in the acquisition, redevelopment and operation of
shopping centers which are anchored by grocery and value-oriented
retail.

    Certain matters in this press release may constitute
forward-looking statements within the meaning of federal securities
law and as such may involve known and unknown risk, uncertainties and
other factors which may cause the actual results, performances or
achievements of Acadia to be materially different from any future
results, performances or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements speak only
as of the date of this document. Acadia expressly disclaims any
obligation or undertaking to release publicly any updates or revisions
to any forward-looking statements contained herein to reflect any
change in Acadia's expectations with regard thereto or change in
events, conditions or circumstances on which any such statement is
based. The Company also refers you to the documents filed by the
Company, from time to time, with the Securities and Exchange
Commission, including without limitation the Company's Annual Report
on Form 10-K and the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" incorporated by
reference therein, for a discussion of such risks and uncertainties.

    See the notes to the attached financial tables for a further
discussion of the Company's use of FFO.

    For more information visit Acadia Realty Trust's Web site at
www.acadiarealty.com




                 ACADIA REALTY TRUST AND SUBSIDIARIES
                         Financial Highlights
      For the Quarters and Years ended December 31, 2005 and 2004
             (dollars in thousands, except per share data)
      ============================================================

                         STATEMENTS OF INCOME

                                  For the quarters    For the years
                                      ended               ended
                                   December 31,        December 31,
           Revenues                2005    2004       2005     2004
                                  ------------------------------------
Minimum rents                    $13,506 $12,864    $ 52,737 $ 50,667
Percentage rents                     307     381         747      948
Expense reimbursements             3,840   3,296      13,980   12,983
Other property income                 83     120         780      620
Management fee income              3,759   1,639      11,492    4,763
Interest income                    1,119     578       3,582    1,466
Other                                 --      --          --      210
                                  ------------------------------------
     Total revenues               22,614  18,878      83,318   71,657
                                  ------------------------------------
      Operating expenses
Property operating                 4,172   3,427      14,323   14,544
Real estate taxes                  2,449   2,313       9,253    8,762
General and administrative         5,108   2,883      15,382   10,468
Depreciation and amortization      4,414   4,063      16,763   15,470
                                  ------------------------------------
     Total operating expenses     16,143  12,686      55,721   49,244
                                  ------------------------------------
Operating income                   6,471   6,192      27,597   22,413
Equity in earnings of
 unconsolidated partnerships       2,433     264       8,228    1,797
Interest expense                  (3,310) (2,929)    (11,423) (10,436)
Gain on sale                          --      --          --      932
Minority interest                   (203)   (198)       (695)  (1,190)
                                  ------------------------------------
Income from continuing
 operations before income taxes    5,391   3,329      23,707   13,516
                                  ------------------------------------
Income taxes                        (522)     --      (2,140)      --
                                  ------------------------------------
Income from continuing
 operations                        4,869   3,329      21,567   13,516
                                  ------------------------------------


                 ACADIA REALTY TRUST AND SUBSIDIARIES
                         Financial Highlights
      For the Quarters and Years ended December 31, 2005 and 2004
             (dollars in thousands, except per share data)
      ===========================================================

                   STATEMENTS OF INCOME (continued)

                                  For the quarters   For the years
                                      ended              ended
                                   December 31,        December 31,
                                 2005     2004       2005      2004
                               ---------------------------------------
Discontinued operations:

Operating (loss) income from
 discontinued operations         $  (262) $   136    $  (138) $  (504)
Impairment of real estate             --       --       (770)      --
Gain (loss) on sale of property       --    6,696        (50)   6,696
Minority interest                      4      (85)        17     (123)
                               ---------------------------------------
(Loss) income from discontinued
 operations                         (258)   6,747       (941)   6,069
                               ---------------------------------------
Net income                       $ 4,611  $10,076    $20,626  $19,585
                               =======================================
Net income per Common Share -
             Basic
Net income per Common Share -
 Continuing operations           $   .15  $   .11    $   .68  $   .46
Net (loss) income per Common
 Share - Discontinued
 operations                         (.01)     .22       (.03)     .21
                               ---------------------------------------
Net income per Common Share      $   .14 $    .33    $   .65  $   .67
                               =======================================
Weighted average Common Shares    32,017   30,666     31,949   29,341
                               =======================================

Net income per Common Share -
          Diluted (1)
Net income per Common Share -
 Continuing operations           $   .15  $   .11    $   .67  $   .45
Net (loss) income per Common
 Share - Discontinued
 operations                         (.01)     .21        (.03)    .20
                               ---------------------------------------
Net income per Common Share      $   .14  $   .32    $   .64  $   .65
                               ---------------------------------------
Weighted average Common Shares    32,294   31,646     32,214   29,912
                               =======================================


                 ACADIA REALTY TRUST AND SUBSIDIARIES
                         Financial Highlights
      For the Quarters and Years ended December 31, 2005 and 2004
             (dollars in thousands, except per share data)
      ===========================================================

      RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS (2)

                                      For the quarters  For the years
                                           ended           ended
                                        December 31,    December 31,
                                        2005    2004    2005    2004
                                       ------- ------- ------- -------
Net income                            $ 4,611 $10,076 $20,626 $19,585
Depreciation of real estate and
 amortization of leasing costs:
   Wholly owned and consolidated
    partnerships                        3,579   3,739  14,092  14,411
   Unconsolidated  partnerships           968     622   3,330   2,329
Income attributable to minority
 interest in Operating Partnership         97     131     416     375
Gain on sale of properties               (509) (6,696) (2,622) (6,696)
                                       ------- ------- ------- -------
Funds from operations - Basic           8,746   7,872  35,842  30,004
Distributions - Preferred OP Units         79      88     333     336
                                       ------- ------- ------- -------
Funds from operations - Diluted       $ 8,825 $ 7,960 $36,175 $30,340
                                       ======= ======= ======= =======
  Funds from operations per share -
                 Basic
Weighted average Common Shares and OP
 Units (3)                             32,671  31,058  32,564  29,939
                                       ------- ------- ------- -------
Funds from operations per share       $   .27 $   .25 $  1.10 $  1.00
                                       ======= ======= ======= =======
  Funds from operations per share -
                Diluted
Weighted average Common Shares and OP
 Units  (3)                            33,377  32,038  33,306  30,993
                                       ======= ======= ======= =======
Funds from operations per share       $   .26 $   .25 $  1.09 $   .98
                                       ======= ======= ======= =======


                 ACADIA REALTY TRUST AND SUBSIDIARIES
                         Financial Highlights
                   As of December 31, 2005 and 2004
             (dollars in thousands, except per share data)
             =============================================

                  SELECTED BALANCE SHEET INFORMATION
                                                    December December
                                                       31,      31,
                                                      2005     2004
                                                    -------- ---------

Cash and cash equivalents                           $ 39,612 $ 13,499
Rental property, at cost                             435,751  414,974
Total assets                                         499,058  405,647
Mortgage notes payable                               238,448  153,361
Total liabilities                                    267,746  181,172
     Fixed rate debt: (4)                            216,788  146,407
          % of outstanding debt                           91%      95%
          Weighted average interest rate                 5.8%     6.1%
     Variable rate debt (4)                         $ 21,660 $  6,954
          % of outstanding debt                            9%       5%
          Weighted average interest rate                 6.0%     3.8%
Total weighted average interest rate                     5.8%     6.0%

Notes:

(1) Reflects the potential dilution that could occur if securities
or other contracts to issue Common Shares were exercised or converted
into Common Shares.

(2) The Company considers funds from operations ("FFO") as defined
by the National Association of Real Estate Investment Trusts
("NAREIT") to be an appropriate supplemental disclosure of operating
performance for an equity REIT due to its widespread acceptance and
use within the REIT and analyst communities. FFO is presented to
assist investors in analyzing the performance of the Company. It is
helpful as it excludes various items included in net income that are
not indicative of the operating performance, such as gains (losses)
from sales of depreciated property and depreciation and amortization.
However, the Company's method of calculating FFO may be different from
methods used by other REITs and, accordingly, may not be comparable to
such other REITs. FFO does not represent cash generated from
operations as defined by generally accepted accounting principles
("GAAP") and is not indicative of cash available to fund all cash
needs, including distributions. It should not be considered as an
alternative to net income for the purpose of evaluating the Company's
performance or to cash flows as a measure of liquidity. Consistent
with the NAREIT definition, the Company defines FFO as net income
(computed in accordance with GAAP), excluding gains (losses) from
sales of depreciated property, plus depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint ventures.

(3) In addition to the weighted average Common Shares outstanding,
diluted FFO also assumes full conversion of a weighted average 653 and
392 OP Units into Common Shares for the quarters ended December 31,
2005 and 2004, respectively and 615 and 598 OP Units into Common
Shares for the years ended December 31, 2005 and 2004, respectively.
Diluted FFO also includes the assumed conversion of Preferred OP Units
into 430 and 523 Common Shares for the quarters ended December 31,
2005 and 2004, respectively and 476 and 500 Common Shares for the
years ended December 31, 2005 and 2004, respectively.

(4) Fixed-rate debt includes $92,376 of notional principal fixed
through swap transactions. Conversely, variable-rate debt excludes
this amount.




    CONTACT: Acadia Realty Trust
             Investor Relations:
             Jon Grisham, 914-288-8142