AKR - Earnings call transcript Q4 2017

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Operator

Good day, ladies and gentlemen, and welcome to the Fourth Quarter 2017 Acadia Realty Trust Earnings Conference Call. [Operator Instructions] As a reminder, this conference call maybe recorded. I'd now like to turn the conference over to Jarette Seligman.

You may begin.

Jarette Seligman

Good morning, and thank you for joining us for the fourth quarter 2017 Acadia Realty Trust earnings conference call. Seligman, a Jarette our Representative is Department. Leasing name and Leasing I'm in My

those filings disclosed XX-K a please that materially the in to the company's forward-looking be the XX, to began, actual statements. uncertainties, and we variety duty Before aware Due of XXXX speak Form of indicated are periodic risks meaning the XXXX and historical by Exchange the forward-looking Act update no call most may the this statements and forward-looking including other of statements not date with and maybe SEC, those recent and as call, within deemed undertakes them. differ statements results the of only Securities from that company of during made such February

results Markets Racanello, with company's core Amy the of the these financial on Ken refer management John Officer, from Press measures. of and today's a balance remarks certain Bernstein, net discussion measures, President Acadia's conclude Executive GAAP comparable financial today's discuss website income. prepared and Senior operating will its President company's the who may for Release sheet. operations and Investments, financial Officer, management non-GAAP non-GAAP the Earnings the including with Chief Vice review Then Please market of measures by of see with followed funds remarks operating most directly posted Chief Financial will portfolio, overview being company's call Capital the and platform. During to and fund Gottfried earnings, reconciliations will

call over turn is it Ken. to the Now, pleasure to my

Ken Bernstein

we over working it's past us year, carefully appropriate stock isn't. company go correction, what's we Thank you. the When Good through our what review have to and for as in a morning. multi-quarter

the and fundamentals, and both regarding the these our as appreciate concerns overreacted to as faced while perspective, bond market we've of concerns our concerns from given inflation growth we we're positioned given about the we're the even in our believe around retailing the the powder retail the Fund more embedded and and year, mortar both growth, And in to our oversimplified weakness interest past and create has the rates. out, core jitters, that we retailers balance as platform, amongst rising the and now bricks recently Over lease-up From concerns. of even sheet, strength dry well market well as confident progresses. long-overdue economy long-term redevelopment, in given reinflation of plays portfolio shakeout

and are two company positioned, differentiation key cons and are to of our about it's how think there we areas both As pros and them.

is discretionary a of that a area dual few differentiation minutes we the First investment solid specifically we a more a of the I’d fact that to our core in is operate discussing composition a core all, portfolio and operate of platform. platforms under portfolio, today. Then that fact like second and spend

York, assets concentrated portfolio core Our XX% Urban of values. core representing five New with is our Francisco about and gateway Street markets; Chicago, DC, Boston and Washington retail key San in

confusion strength the of kind for retail, to of estate. around stability sight street lose of real and it's Now noise the demand this and growth given embedded all the long-term the the urban and the easy

portfolio. Most of we into turn have two store. the our five North that of on Francisco, then buildings of consists flagship that value XX that to which we corridors on about our I'd on Chicago, Coast in street our the San Avenue's completed Gold Mile, largest the largest So to York our New Georgetown and Washington finally in DC. like with up In key The four Miracle three of review recently Michigan Street, expansion then that in three a building. State are investments mind, urban quarters largest make Chicago, is and investments in and Lululemon Rush/Walton,

We have Diversey fourth Clark Chicago Dior, Then finally neighboring and Tesla, one five have is include in Versace, corridor corridor building we redevelop Aritzia. the that - and and on tenants buildings. on Lincoln to more Park, where

redevelopments one second at level, have building from the traction we're across adding of exploring property We for On projections. to where them tenants. increased our will tenant location, own block, and above and the TJ street to to leasing. Joe's rents level level opportunity prior tenants any large-format Maxx above leasing of our our our street thanks that another substantially we on include redeveloping and the quality project by our densify level Starbucks the the thanks key good floor. street we Street Trader of are that to already be this the have adding that prior balance have and and the a second Bluemercury to we here peaks Then

and in an adding Trader existing urban densifying second property we Second future. for anchored we that by parking two target City square is Rack slated it potentially does in redevelopment, of had largest the Then that our densification a is anchored by component centers, and additional to not additional Nordstrom and is opportunities Francisco Joe's footage shopping on currently have a Street Center XXXX while the lot. property which San property is where the redeveloping which are anchor, largest

impactful City in Then and M-Street Tribeca, our and Square we demand own and partners building market. residential leased leasing in and Jamestown, Union street retail street and to New and high retail of and our have City is it fourth street Third you York The have of than where if headquarters our a meaningful makes The neighborhoods growth SoHo combine half which some single well XX EastBanc urban while Avenue, the with negotiation York represents no is finally DC the Georgetown Bowery. it is our top XX is including and XX% Georgetown the is balance Washington investment list asset our retail and New presence and Madison York there. of New under York we about less GAV City City value, New corridor

street a this assembling to our multibillion-dollar private a demand are in and I we urban of want of are premium often high trophy While markets be not there collecting. portfolio assets for and institutional the clear is quality,

zero. of account portfolio the in than dominated nature analysis that case street whether is tenants, to our than headline XX% portfolio is leases on less want Our should our location peak consist to the compared rents of and under from streets rather XX%, last year T.J. problem Avenue Maxx, building XX that as providing high-profile even owns Fifth Madison to And if it appreciate occupancy there. noticeable. XXXX, And expected. declining XX% solid the of retail urban we a when XX% as to I to off playing in just NOI. to then or and NOI of streets XX% year discussed growth, it's cost XXXX their in a this many basis of was from our I occupancy from of growth released lost by or single on flat. of Trader they one our but that Joe's asset representing their our retail to I at of are are XX% we our long guess to slated we well taking probably drop that then concept its and out easy appreciate income to rent, to superior Avenue Armageddon, a high-barrier-to-entry handful extrapolate on a and some and before to expect our this where vacancies And rather suburban long-term the we that specifically, throw and grow as growth reconcile zero Target less provide And net that's peak And between Notwithstanding losing the the dropping rents they dated growth expected hard signed so-called it come. to the leases rents to street asking operating and of and Rather someone XXXX has our current in redevelopment, should of big as retail our leverage. lease they into in much the value urban result building excess of than deteriorated years long-term their a of And approximately that when And grow. one superior X% by operating with higher XXX being more XXX been same signed tenants from just majority growth ranging it's so then street points buildings. vintage more than adding a portfolio for we they NOI rather expect the than thesis thesis net income less portfolio. volatility, this given to than long-term

less roller in up the had the hoped. the not net translates year $X has in six to to down growth than to and minimal. first is long-term metrics certainly ignore hoped in it's growth re-leasing we through million in rent $X minimize vacancies anticipated this estate value Now $XX to cases streets. asset the which spaces it what relatively impact is of is great taking retail coaster fact in and insignificant, key to million Nor of rents not line. of our about had our the and fact on in we not difference that value is portfolio certain longer that's value long-term of is at today one of than delay, in to somewhere small significant frustrating is be until asset growth this half net and from to The net some to a And while our market are less coming quarterly now the and increase projected peak of dollar once to show in lower million real impact The probably the this this month than expected the between be expected and sell-off. place stock That operating our share it's operating the we the compared we later in to to year. estimated compared is the attack a forecasted in income NOI but some our for

the to we're up recapture temporary portfolio for anticipated relates of occupancy a while its our this softness first core and solid metrics creating our half and are overall lease-up, John performance anticipating year, and our will redevelopments in acceleration. while term been it impact short has this lease of the XXXX for upon As in discuss, metrics as

are recognize Now negotiations quarters the and the team. to going next metrics Of the third quarterly them. this lease year by where leased, back leasing our that getting on need want to focused is we final of we we critical keenly being XX% third another to accomplish be couple roughly active short-term to in our is leasing

to compared especially urban headwinds year retailer around ago, in concerns street seeing the our a appreciate we in improvement meaningful interest we're retailer while Finally, a and corridors.

will Amy invest off especially to that are The as are appreciate second that REIT our when and of to prices meaningful. volatile on I the I’ll the inherent complexity. the is appreciate a ability to adds relationships, monetize strong it discretionary business our investor ability The our are stable it be of continues fee-strings earnings business, as they as coinvestment platforms makes sense. fund volatility but as to touch have to assets are, I dual leverage it that significant institutional as we on, returns component and capital profitable touch briefly.

strength of said balance in always we've sheet balance terms our sheet, matters. as Finally

value redevelopment stock program value our been short, is their given pipeline, continued to it on our our stock fund program realizing pass over very low expect As the and proceeds proceeds certainly while last dispositions, sales to that term the minimal, John focused will asset the the is to the limited we’re embedded up. is and buyback from and given pros than less a capital core from appreciate buy material structured bumpy fund a will has we we dilutive like while discount discuss that loans growth to I’d of to now I possibly needs cons FFO and fund Amy. company. leverage, assets redevelopment our and buyback upon XX%, like year, exists our our our but In the we into over given a at opportunity to in our positioned timely, short value how to needed the road call to redeployment capital debt to remain turn are too

Amy Racanello

add important properties discussed acquiring and investments. barbell Fund continue steady the review value pursuing strategy, quality will platforms, our I Today other Ken. mandate. a we Thanks to and on or both high our that on with calls, Funds buy-fix-sell opportunistic Beginning acquisitions, progress high several been have make as yield

$XXX end acquired acquire fund fourth and million. acquired is at $XXX Fund to of acquisition low contracts entered $XXX year-to-date During our XXXX, XXXX million. or our Fund to This XXXX guidance properties properties. quarter XXXX aggregate high-yield In of the original the of platform two million for more of XXX into million an V

Our year's create volume Last it distress selective. says all, do remain opportunities. actionable we highly investment not

for prime continue As we markets rates to centers begin XXXX, in cap move up. non suburban

rates XXX realistic. properties basis up asking becoming types cap ago, to of that fact, these for a are an indication In points are sellers from XX more year

are non anchored supermarket We of seeing especially centers. plenty flow deal

still up this expect although usual shown Our case haven't to don't competitors forever. the we be

X.X V Fund about with commitments. will capital deploy to XXXX. continue and approximately of to currents, cost powder putting the leaves to proceed Given we summer we’re This retail To-date although we've billion us allocated available of to optimistic XX% dry work. capital caution of with

V of generating equity X.X% we've all between XX% high a strong purchase our return of able our Despite movement rates X.X%, Fund to acquisition price investments far we an and With finance means rates, yield. in to this has mid-teens X.X%. due been are X% all-in been cap banking our cost current So of at to the investments. relationship, our on

our locations. On see to investments value to XXXX. end This street opportunities key of bright beginning in we're retail may demand spectrum, retailers spots the increased from of other just particularly add urban in our the lead and

complete retailer allocate less is investment of We broad pursue made to but and urban are a can One ground-up nonconforming can development We of with More our contrarian the the Mervyns retailer-controlled new activities. can and place or have large-scale Albertsons to property and a in headwinds be venture profitable costs we our markets. business as ability pursue developments rise in RCT of we recently, many and range attractive strategy. high-yield such as ground-up capital. highly fund benefits profitable our transactions construction

In fact, redevelop skills but urban and the XXXX a last retail new important suburban these we in time we properties. development release was committed can use ground-up street to to and

the Over returns we've attractive very on fund able been to investments. years, our generate

our This XXXX. returns I returns covers realized we to IV. across by period fact, In reviewed sold recently and analyzed thesis for projected through the returns Fund We balance. investments investment for XXXX the

currently inactive. venture RCT areas where developments ground-up Excluding two we the and are

double XX%, Our in which ground-up an existing to few deliver we in still our have investments of and Point. We are equity. IRR our developments a projected portfolio, of excess largest expect to the is City

As and tenants expected particularly clearly Drafthouse are delivering propositions the Point's and value brownstone anchors sales with City communities. Brooklyn two surrounding downtown of Market, the whose Alamo residents DeKalb are strong resonating

Lily. we Chicago's Serena portfolio forward-looking City retailing properties towards Looking where Warby ahead, young for several merchandise be mix Prince and envision Avenue Parker, Armitage experiential the Point's This retailers. concepts have Bonobos we to welcomed SKU similar to Street core & our including own would in nine and

XXXX of and detailed entered $XXX In sell release. during we retail. press our to XXXX, the which quarter recognized $XXX difficult in net We investment into contracts were some was sold million to fourth or year-to-date platform it’s sell XXXX. completed Turning of to our dispositions. surprise that time sellers a as now million during our Fund To

stable give our reality past selling sell level has to expectations. some the and points, properties for to basis rates a in or a that quality in for same a met But the handful rates achieved as our high opportunities off months. tips Savannah with cap it we us fact, where IV over XX created cap make XX buying Georgia In vintage XX our take multiple, of properties properties few the interesting sense stabilized XXXX liquidate at fair pricing had target by or for in of properties exceeded funds, table older take Fund already

Fortunately, well residential. primarily lot This office we've seeing earlier and interest and a for to we bodes XXXX sold pipeline of is suburban assets, mixed already from disposition investors vintage our which use. are institutional increased for our

another platform. conclusion, our in had productive quarter So we Fund in

fund continue sell within stabilized significant barbell We and strategy, profits. our investment assets existing to our on our portfolio, value create execute at

I'll Now, the call John. over to turn

John Gottfried

you, and came start and our XXXX and of earnings, with $X.XX. Starting our driven with Thank key of morning. sheet. overview business. guidance off was $X.XX by a in good then above metrics, of primarily I'll we and Amy, our performance with close discussion balance fund our quarter an our at expectations fourth This within activity

X% we income by year the XXXX. accretive XXXX. in promote full our importantly, approximately This More reflected net growth grew acquisitions FFO the excluding impact executed full-year in of

just that occupancy moving substantially our to Now ended under now expectations, with our the the anticipated believe space all reflects quarter had XX%. of Consistent we our on occupancy recapturing. We our occupancy.

have bulk half mentioned, growth dollar see XXX up in efforts. that, up to work our in street a half Based our basis showing are Ken to anticipated our high to in we're coming roughly points second place traction second XXX current leases leases to leasing of upon with of NOI year. earnings from we although the in the As dollar status, of some leasing meaningful we do, year. the we in of our the seeing still From lease be the our start anticipating high

approximately our XX,XXX with a we signed a of feet foot. quarter, X% nominal strong within cost at space over square of fourth spreads core the During fairly portfolio $X of cash

NOI. Now moving on same-store our to

year. XXX outperforming out urban declines would our otherwise approximately NOI fourth with in from As for previously the these occupancy and over the for our worth declines, quarter points. full NOI full-year, if our same-store suburban noise grown fourth the and X% basis occupancy occurred have that same-store by that quarter It's noting street the stripped throughout reflected the the discussed, the impact of you

Best City San our we at calls, feet square property approximately from on discussed Center XX,XXX prior Buy Francisco. As recaptured in

We second occurring discussions anticipate space the of several are the an we date with exciting half with XXXX. expected retailers commencement releasing in and profitably in rent

Ken The headwind lease occupancy with the leasing the given occupancy that we half We're our mentioned up, largely of what into of quarter. first of to for normalize we second As fourth in growth like the that a be accelerated look negative XXXX balance of the our will disconnect XXXX delay expecting quarterly and in believe year with will six-months recaptured plans. XXXX on continue this a XXXX half XXXX expect our execution we metrics. conjunction is that throughout in will the

Now update an moving projects. redevelopment onto of our

We continue to the over next expectations CAGR our reaffirm years. X% over several

Although guide a to to we increasingly earnings confident meaningfully show in with bit certainty, becoming accelerated too our are up NOI growth in early XXXX. with starting

As strategy. make redevelopment our Ken are continuing mentioned, on to the we progress of portion

largest As comprised redevelopment being the space. is split contractual The core with you'll four square City retail half comes single of will of XX,XXX rent up bumps of from approximately between asset in Center coming redevelopment Francisco. add assets. feet X% CAGR lease the the driver recall balance from San our redevelopment plan and approximately of This

XX% this will We shortly completion with and tenant an delivery begin are space approximately at on construction expected and least early of in XXXX.

commencement are of continuing XXXX. to expect We second in the rent half dates

$X.XX guidance on moving $X.XX Now XXXX to of per our share. FFO to

key have outlining our components in provided assumptions. release, additional you'll As drivers see in the underlying of our we details

line from our into as important impact timing is our to the Our none note Approximately the rather proceeds it coming City adjustment. based roughly on $X.XX rent below-market reduction and business lease structured the $X.XX $X.XX finance repayments, leasing and XXXX recapture straight reflects It's three redeploy is $X.XX our back and largely FFO our had split our between our a from in from book is plans. that we structured Center key of coming of execute its finance items. NAV

in related FFO of have of mentioned, drivers $X.XX NOI $X billion deploy terms fees. investment, is the and we dry In to factoring excess V. in remaining incremental as of generate over Upon powder this FFO Fund of full to additional when Amy in anticipated

decision we optimistic REIT will that below are be in will reward came our Fund a investors. we discipline our and to our of Although initial patience prudent continued and XXXX, both our Fund that prove expectations acquisitions

our and guidance profits transaction. potential reflect Additionally, from does yet Albertson's XXXX recently not announced Rite-Aid the

We will further information available. provide as update an becomes

So our pieces the in few guidance takeaway is a FFO not summary, XXXX while is new key normal. moving a

efforts, of back back the Following successful execution our lease along the we the revert expected structured growth FFO will proceeds with that the book expect into of our recurring finance and to our historical from redeployment business levels. our up

moving on balance to Now sheet. our

financial Our liquidity position and has stronger. never been

is borrowings our of approximately we available at approximately in XX% GAV analyze and our platform, leverages have cash balance our hand, current recycling revolver, our Our Between capital fund corporate and unencumbered. within in and sheet. our core of tremendous flexibility firepower XX%

use aggressively to share our this Ken will including capital increase NAV has We that advantage discussed. repurchases

in quarterly of announced, again our previously As our Board dividend once increased November XXXX.

the tax addition, conviction as REIT, years. Throughout expectation In importantly increase X% not to this equity. our our several have reflects more of meeting continued and next over any requirements we a issued growth XXXX

structured fourth leverage During received finance sales Fund asset with business. our within our reduced pro net quarter, along our we rata the utilizing by portfolio, $XX the from over proceeds million

to this further during approximately incremental that conjunction asset planning which XXXX, a detail position. converted enables with this a we we No was and into we our or on ownership cash strategy. an be later loans capture us opportunistically few exchanged tax This conversion of point. growth at will was in million discuss made $XX further in ago done years partners will Additionally

in our Lastly, borrowing after a group. resulted in of and reduction This bank lending year-end we maturities, strategic terms, completed facility. corporate of refinancing extension a improve of our cost, refinancing overall expansion

but more XXXX, over our for Operator closing, to With some in to half do XXXX the of beyond. will I we enter turn as efforts leasing for in importantly growth we and on the while well believe we're that, So have we questions. second the poised XXXX in work call

Operator

question of McElroy of Citi. first the line comes from Our Instructions] [Operator Christy

open. now Your line is

Christy McElroy

of the regarding just half. NOI in John, reconcile of wanted the to the you some leasing same-store that sort second and trajectory comments made the

in street second does that half does expect signed rents. the in And the today. you’ve for to what that be majority you commencing that said mean many of leases imply how place leases You had

walk about working sort retail talked X% if range still street of thinking And us the you're leasing these take commence? you of to to X% get for happen seems what on to of XX that today the through rent needs just You’ve about kind to could sort leases will like realistic, maybe longer it that. what to

John Gottfried

Yes, at of - sort his whether we various and points lease stages whether are cetera. it’s I think outlined Ken et NOI speaking in of that in

toe-end optimism. So the to add we is where don't the have negotiations. tenants we do and optimism what and with have want and to discussions towards - trading in do that why mid you be. we confidence the get have potential your paper of AVR if rents get we - each forth at means - place know we in quarter end and them and where have to are we of to to third good which high back have do seeing of we higher But the active those want but on could signs we’re given additional we to Ken there we get chunk are we range have wide to point seeing you obviously are that increased points,

Ken Bernstein

to my came and determinants there retailers remain After season is perspective relatively hits in to will now month holiday so we at the you’re rents, fourth back determine it’s What Christy the quarter, each it's been at kind and confident NOI be it commencement the and going third that want same-store because down whether what the locations the I really - each these that the we’re or date will for right it critical that realistic news looks of very And from quarter. what the on said was. to quarter date boils recent commencement it is really realistic rents like. will The be rent focus hit. good rent

to fourth perspective your the those And to third from it quarter get critical. I a going get though impacts so as timing that asset or question your there. net modeling will value we’re be To

dates let soon you know. set to As we’re commencement have as we rent all going

Christy McElroy

reconciliation I just which X%. And at just the If look at at Page look so core that, related over to that on that's is, implied really the X if growth NOI helpful. midpoint the FFO there is

range its FFO end Same-store growth think to X% think I of about X% like so FFO me in should X.X% relative So that. that build it of and to the is upper range to X.X% seems X% that to how not your that currently to to the we up NOI guidance? X%

John Gottfried

Keep City in year back that over negative quarter the mentioned mind $X.XX Christy $X FFO we $X.X so that January million as in Center to is of got space out call came and was that a this though I big on million. third so

pool Really it year. when have year a it's that on metric, factor XXX and ended have a half the So will the it $XXX,XXX not then us totally NOI And to I second in into think - basis way have unless coming you a have quarterly movement XXXX of moves only it. quarterly back big back and - of huge, perspective, from half I an growth impact basis. don't our the FFO that in this in points meaningful into the we

Operator

question next line of from Our Bank comes of Craig the of America. Schmidt

Your line is now open.

Craig Schmidt

You what it the of versus improved? XXXX retail attitude touched rents this XXXX the mean sort I their consumer curious that is of on the has spring in the change in for attractive leasing I'm more view or tenants it but from is

Ken Bernstein

the too got had rents in going catch rents XXXX are to that’s better Then don't XXXX falling factors, in retailer XXXX, about happened think pretend are wants themselves the generalize to host stronger every for to a retailer, want Retailers to positive is holiday plus. the they season economy if plus. knife what perpetuity. it's ahead and think I I far decline consumer but I was the of of feeling think a that’s a no

And continue of decline, going them feeling there so bunch rents but the sidelines a were the this business of was Wow own also to on their issues, either are because to because at some for And point in their headlines profitable rents. recognize stores of brand, past retailers are essential these media months were essential couple horrible. these and the stores, at today’s are the

they than much how to had Craig, we’re on we’re yeah with so works. because can they And a up and Diversey building retailers this confidence new for building rather Chicago step Clark in seeing rent tremendous in their of And waiting T.J. they amount them get cheaper because see Maxx, – business. that early said

relocate SoHo more you're be in grew fast profitable. it those the it too this And for rents way although volatile now going see to to to of We’re long. because Avenue market some like Madison will starting too like

So they we’re long-term the relates the retailers we from a and rents. drop, real that’s we’re step And perspective up now real dealing further it realistic value to to want. finally estate creation dealing as had but spaces seeing what with with we’re and retailers

Craig Schmidt

do unique leasing to wonder how that I City going Turning Point know City of Point? I to you’re level, was on first a the trying level something on first

Ken Bernstein

gaining anyone expected. is hall Drafthouse it. than could also thank and reasonably traction It upstairs significantly have food finally goodness is Alamo the doing is crushing better

resident for Downtown Brooklyn The walked have has fine, in to Street but and and And level who shopping we’re Street. have proving see construction clearly a Fulton kind shopper Because is So been all type it's these if new desire is still here. experience up of just on show while it negatives we to a that said the differentiate doing we around a Prince for bringing Brooklyn out. from that there's street Fulton Downtown Street anyone want in zone. of the of want what we have new

by on. has new best all kind scaffolding shopper. So high-rise I’d those retailers. in delay retail through But about or residents to because hard translate development complain of is still they GLA coming new the half in say other later almost going street to sooner burdened that's a our It’s our caused and that of

So team the primarily is which in interesting bunch short find talking really concepts newer to of leasing a exciting. we

it’s the seeing or foot Target. Drafthouse whether We’re Alamo traffic

piece and food Century longer will so We’re we’d the XX shoppers fill-in it's in than seeing the final in hall like. taking just this

Operator

line of of Capital Thomas comes the Markets. next Our from Todd question KeyBanc

Your line is open. now

Todd Thomas

end no X% to terms beyond growth in of gets the same-store forecast. rank – there you that First of question of done low think about growth guess nothing are just trying it's high X% we potential are out to range? remaining if that to outcomes back I today. the all and what’s end the just X% to within already that, the know how planned that leases X% range additional John commencement essentially, I’m and that should signed the figure

John Gottfried

fair biggest others pretty XX aggregate we roughly to talked back XX, to think look right? quarter were we which a the third about of of were we in of think way drivers – what leases those. them XX in and So I highlighted XX about it, some there the about That's –

So I negotiations. others been about since we’re in think active that’s are signed very have talking some the those of pool

optimism. have X% get expectations, So that to I of would to get a to the X% to look – say two when do rent of assuming we’ll to you much off based level we we current and commencement date at don't guidance but a be our closer

going be that. We’re to above

Ken Bernstein

is on really right want is all to before. over And because listening let date touched important is NOI one and it's remind is care too team It's them sensitive with a NAV above Hopefully, emphasize everyone and pennies be there is few Todd of desperately same-store there growth, of in this, the or everybody. want and I rent apocalypse don't this we will I this. to don't unfortunately put but care next about do to creating what periodic we our anyone retail scared in between leasing, much so NOI. a million has me chime metrics pressure that out but is appreciate why as I about want this and just no occurred of But our and one. difference I we leasing out lose seven one and there date the focus, desperately now second two different on average term, downturns long commencement of the on rent simultaneously commencement It growth good the heck that couple the when of this sight as bucks half Armageddon out

Todd Thomas

a that in commented have - indications portfolio you what And premium market there? just assemble sense – around be any the of the Ken today. or command you Street to would it Do that properties would collection hard any retail premium

Ken Bernstein

of of Avenue, of our discussions it. is specific the then a is two is There there and activity that X% portfolio State been XX% and volatility for this I superior we've a should almost the urban Walton going - enough want get be North there top there will in all corridor And is periods walked for in business. interest three through corridors which is San Georgetown Clark any money institutional right low now, transactional why Street we're Street, Manhattan X Michigan difficult urban portfolios And urban should should our view kind our street to high strong lot so has growth XX I don't Yes, street and Rush that that's capital number so period right been out Diversey, on centers and XX% roughly be enough of plus that high worth throw to there is we that. in caps XX% in billion our off four in retail even be of put but, of Francisco. is those wad quality caps And overall roughly shopping XX% portfolio. is while portfolio. of mind markets in talking. Keep like

Todd Thomas

the sort bit just of who just the the what little changing to all for to tax then portfolio curious plan at sort after is after terms the regard willing Conversations up handle was of And a bonus I of CapEx lastly in just your was given the space stepping spend know depreciation? in you past. in retailers holidays

Ken Bernstein

difference the I stay just because they retailers a of if the because bunch It changes. corporate not has I are then big that not as reform of better. estate a think of feeling of to even at negotiation is real result translated result tax tax our don't level a - say as that would also it’s

it’s more see but the somewhere have they to consumer figuring having because is those retailers blurry are occurring also do a but to Now while but good. the shakeout feeling enthusiastic, more it And pay is more, for we have can it been continue is not are between also that is location it that don't having a bricks appreciating fact benefit. is essential that business, a that changing, working the our I to preferential is And and are and profitable not. out, mortar because

Maxx’s So good range doing from to TJ job we the are retailers to a relates of To to Armitage. on markets and the urban Target what of succeed the very Amy the in focusing them you’re it of is is a formerly of Trader Joe's world predictable to the online who going new that. some that seeing but seeing on to populating stores screams as call and we and on strong touched

confidence very So level September, a now are that's saw there we of we there – out didn't in see that is November October, conviction that seeing in and reassuring. and January

Operator

Our comes of [Han Xin] of next from JPMorgan. question the line

now Your line open. is

Unidentified Analyst

much Just come still digging was Madison little a if to you in online City going is of And into NOI about properties wondering how is the the Avenue how Point? talk I leasing expected could for bit property.

Ken Bernstein

then don't take you can Amy why And Avenue talk. John, Madison you the first?

John Gottfried

was mentioned up, type with was Ken are pool Madison thing talking we are rents this very Yes, before expected in to Ken our the wanted a s and that – on to the the when the – discussions of in is size leases show interest right so of interest on negotiation another up in impactful of we what are is one that show I about is talked given there. one from that was seeing we’ve - Other retailer and about metrics. active to quarterly we seeing that that sure quarter Madison of somewhere having the

with big, a perspective, of was was is it pool in but that to way seeing small a just of to so the going – we interest Madison NAV we're under attracted ground a in this also million. It’s to were equity from investment we driver appreciate NAV capture. retailers a structured that that highlight $XX into type I’m dollar rents went that Our perspective hoping wanted from but leasing the

Ken Bernstein

that things add those couple just confuse up our in Madison in And don't assets people fund on let platform that so show same-store me a our cetera. Avenue that et NOI are NOI don't

wish by lease I did is we up obviously usually growth sell they it it significant. often because Although the and then and we six

a it's John on preferred We relatively is the small have it amount of I just in touch the NAV. - Carlyle and only the core believe being structure

down Funds of on walk it’s happens, fine, Avenue correctly. of but were those rent very Hopefully discussion same-store those Acadia NOI we and it so who those it. City four is to about structured for a have when bunch has sensitive, We deals that's be our four in to Madison three we and our spaces we the but Point. as see of and not They are in most currently active us in of be thankfully date commencement up specific what, it very stores should relates

Amy Racanello

calls previous on roughly we’re roughly we’re basis half. square leased revenue a but a on on on discussed XX% basis footage we’ve As

a of see lot that still So we revenue to online. is yet come

interest of express discussed. the right seeing retailers as Ken kind We’re

three either the blocks in million radius actually on that years doesn’t I our square in rents of lease-up, think of as a range. today square past several our go. co-tenancy, these X years $XXX in a rents project next three of same Street feet property that the of just own our in and design radius know block X ground-up the also in is given Fulton density the are going mentioned in feet Street discount the has with premium is where location Fulton first not five feet you right of the over we Ken thinking just XX amount but our project. million and that’s really and to process City Point around been completed X Street million We’re Fulton or mean up that years a another Fulton this property incredible the over square to roughly include its our Street like or quality do that’s

So project that’s how we runway of think – it. ahead long the of

Unidentified Analyst

to opportunities? Alabama speak making and think Michigan more do two good lot one not And you those the in you guys recently states. guess last have are what a I in Fund you been of looks investment acquisitions makes But think question it like

Ken Bernstein

a Don't snope be now.

shopping we and So clearly that. is suburban world playing here see markets on the - center capital out in – retreated what’s public private the

no The REITs supermarket on handful there’s for the so that exception sidelined. co-tenancy And been for sell and the less the about sellers doing will a from have REITs provision with been of those you been side And some for So today there's year the or and given risky on no, you two safe rates active that but XX purposes and reconciling nontraded cases of net new has in gapped get bid, to level and bidders a have non-supermarket cap been again at normal moved side pick there's chasing about of sellers we we private rates, if because institutional saw they private from anchor. is year wide competitive then be secondary no the and far been I bidding were But with still of mentioned selectively operating the intents seen year’s all public income as Amy as place last terms are have are in in the that. we five the years view anchored up this. justified into these the I've markets may a significantly they this problem ago The market. to XX three, out active the cap assets a heaven seeing with in or there saying this. once there lot now. the cons supermarket anchor, But pros and been plus while years not we’ve as too

want market, retailers we other the be will would makes although is retailers our in for them from you don't in to markets look Fund to carefully to year We rent don’t are us there the borrowing to sound be assume ratios assets to if picking always we be fundamentally at acquire assets in that sales know some Where which should place the companies it the they for may are if XX strong the our rent you in at sound. town I cost, a that you Then state. are business. assets spread sense be there spread is the are want argue If look private there treasury say where you if where turnover that the strong. that to market

and that We’re we not REIT. into put would the pivot suggesting those

We’re a in not long-term X%, one borrow simply levered buy basis suggesting two the we’re today where that on assets and saying these are to ideal can X.X% you Xs. between

deal operating there than net may the Yorkers around. long the income remained not chance there of as is As as often down for reality there's shoppers with upside – go still we’ll think sound as that more long we as New plenty

Operator

of Our next line van Dijkum question Floris comes from Boenning. the of

Your line is open.

Floris van Dijkum

guidance Quick core rates your your helpful. information well of with information presumable or question more your for with Would every you sharing NAV members a this board you range markets for even detailed share you consider the as the cap Ken number very the on quarter portfolio right? of view on disclosure is one maybe obviously

Ken Bernstein

Maxx or we and the a of subjective. but And case we Target showed one to during for that do I weren’t be single we if past volatile the market growing if which in rents years marking that well you everything in I interesting. everything knew decades. would good ponder have lease that the getting to significantly, that my that things times do hesitated because I two not hesitant to showed Yes is been were space I Board is a back TJ

out in stability is of sure that to And one what buyback data sensitive be Similarly program. little there something and fair so do indicating I to being trading we’re and that the norm. cap assets now there we’re the amount is adequately when we are. a down on when discount smaller the to transparent majority a we’re is out There which and when just confusion announced why have all rates need NAV on constantly and that another. at more side a misleading trades make create our not the is or form of stock mark up

– able even of We’re not that to in billion a volume should out $XX the talking and it. figure we’re determine that months that are in trading of assets malls, about quietest be you with sufficient talking about

we're here hesitant Floris So is. the piece but on of it final that level, is

predicting the Funds long either at our assets good but sell I thankfully might often often in really amazed how am We’re upside. where not direction long more in we’re our than to

So you figure else's. that is guys anyone good probably I'll as our And let guesstimate only out. as

you where over grow. a we show will the sure guide is past years make to here next clear going five NOI We’re our to

want so, make as to that I talked to about cases well into dam the other that that. conversation to going the defer I a it you get in pretty are half ascribe as of XXX and I And investments just good We’re really guys don't those will just good. whether on you XXX assets XX some or half clear

Floris van Dijkum

on is volumes Follow-up question presumable data the two City you’ve in there that the Point maybe got from you existing tenants. sales of of anything quarters can sales share terms

Ken Bernstein

to I'm with we're they’re not to seeing. what than say they and other pleased again are allowed very

Operator

any to Bernstein And showing like for Mr. back hand over you. Ken time. further I'm Thank no at to questions closing remarks. this the I’d call

Ken Bernstein

joining we speaking you everyone us quarter. look forward next appreciate and I to to

Operator

in conference. This participating thank today's today's gentlemen, for you and does program. conclude Ladies

You may all a great disconnect. Everyone have day.

Acadia Realty Trust (AKR) 24 Feb 182017 Q4 Earnings call transcript