AKR - Earnings call transcript Q1 2022

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Q1 2022 Acadia Realty Trust Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to turn the call over to your host, Rielle Green.

begin. may You

Rielle Green

of thank quarter And My joining for the us is Good Acadia you Realty first Director am I XXXX Green, call. at Trust the Acadia. Rielle afternoon. and for ESG earnings name conference

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

limit management from non-GAAP posted financial website may press give non-GAAP release reconciliations refer on certain net most During see measures earnings first Please questions participate. those financial of directly comparable you and this the income. for to Once becomes round for everyone to the the questions, opportunity ask per that operations measures. call, Acadia’s caller to open funds financial its two we including with measures, call operating GAAP your to

answer as questions further ask permits. by reinserting we yourself time may will queue You the into and

my and begin remarks. is it turn today’s call will Chief President Now, to who Bernstein, the Officer, to over pleasure Executive Ken management

Ken Bernstein

to concerns as has volatility the inflation look terms And another and fundamentals growth. everyone. of at we We ago past exceed tenant volatility capital external result investment we activity when growth. over the legitimate markets long-term our in activities. us a with that plus couple solid solid economic and or few around our demand, in growth expectations. markets both our this despite continues a Thank quarter, momentum well tenant likely, Rielle. Welcome began our business, either driven of you. had leasing for positioning the internal job, are morning. Then and capital our significant there more performance by as quarters Great our When growth, the been traction investment internal growth, external it, while, of as quarter Good

as by terms X%. performance, increasing we the to continuing NOI out And is this noted half as early growth year play quarter, year that resulted In began reopening leasing and in over our this average of last well. XXXX in second tenant last above

we market activity. Over saw continue our collections, the tenant last quarter, and an rents demand importantly, most and earlier our predictions. leasing exceed improvement to in And our

a affluence to to inflation. recession. down our not particularly of in will to absorb that not consumers strength market portfolio portfolio either. as inflation, importantly, segments the well segments Now street the we that current then perspective, where the hold absorb be of bump And of will think sight serve spending insulate from I this the our that job wider speed And which in and then suggest capture is of on shape, event power the margins of supply the have retailers lose But ultimately, this likely or which our issues our are of And where it's good recessionary or portion the have as most be shocks. likely the supply should seems margins our And positioned landlords retailers their not in consumer their relevant. of strong let's growth? are most portfolio to come most we going to that remain resilient while chain and to strength the consumer can about retailer be the pricing of to top-line to of to environment, think

in few of to terms a things pressures, inflationary keep mind. In

generally our First, leases stronger growth assets. our value market in suburban than street contractual fair have resets rent and more

Second, expenses less of lower well of as operating a cost retailers street-based growth. net for are on our percentage as impactful much rent tenant improvements thus effect occupancy

Third, streets in many already This volume. retailer excess retailers our pre-COVID already their that of of many sales, means sales rebounding lows. cyclical are rents well they're at at are And rapidly. doing

still are rents of recovery. the in early While stages

of demand is ratio obviously dynamic Now demand But both the and years, favor. top-line key in the several finally turning sales performance supply is driver other our the rent. a line supply bottom critical after driver, tough

vacancies we on Town, Green been M George [Indiscernible] which and last Everlane, because in control in it ago, enough But Lab. Soho, year by there's added of got the our COVID. recent today and Glossier rejuvenated corridor, a before street, partners Gloss For year last the arrivals, on including has we quarter Street one. instance, even hard Street hit and XX and this for there were Similarly

our in a for So portfolio nicely. out forecasts rebound is our playing multiyear

papers turn And faster or of there our Now in of Soho, retailers, especially variety and the that understandable native retail wide the corridors. urban as long-term luxury in stronger years and mortar several margins, into you contemporary acquisition from the appreciate whether Place, hitting Then retailers tenants. than I halo happening Melrose physical an digitally fog headwinds, it's converting portfolio, the expected. is investment store But remains our M hitting around new all a recovery advanced in have after and they're the profit skeptics effect bricks on powerful been rebound hearing and into customer Street, reading side. in and we costs,

for also in fund. portfolio our nice Over our core as last well seeing for growth we're as investment quarters, of opportunities, couple the both

there will to barriers that cluster performance drive move assets On we're off entry retailers the to to the making there and want where for What are our demand higher core side, a our rents sure adequate to experience materially are shopping been likely such entry over next barrier are to several acquiring on and has focus corridors, retail tenant reluctant and the right market markets where focused the block. vibrant picking retailers years. is the that then high

And some have Los Armitage in the this Green in in Angeles, Greenwich Chicago, include Connecticut. of Street done we Avenue successfully Place Melrose Soho, markets Avenue,

we're to I Now, mentioned, of the performing just not COVID. headwinds better are many the already immune and are markets But quickly, than they pre-COVID. rebounding

This add But investments contractual come more and Our is market core goal growth, will long-term then from value well for or growth going rents, rebound have of components. strong accretive combination to a importantly, growth. as embedded in yield. as

is Avenue wrapping closed portfolio Bedford third million we January, $XXX The fourth streets. in and in instance, For on portfolio Williamsburg, Brooklyn. on

whom market. we adjacent with Sephora tenants have residential store units going long-term it from is value lenders, to Apple in, supermarket went the graphs, recapitalization the borrowers add all through opportunities a and significantly owner as well. made ranging Thus knew XX but and this portfolio existing contractual transaction Our also us this to and We that's to a enabled from our well, to market. below we strong accretive then Sweetgreen, investment and before the complete

And growth growth & down in Green strong of of here on long-term strong redevelopment Rents and and tenant on We acquisition the upside. Hollywood also Corner Spring Beverly poised one the has corners long-term an rebounding contractual upside in Angeles contractual as Then Los market this Olufsen our plus quickly. with Bang to added Boulevard we are great with Soho corner key from the and our again, there potential West for road. presence acquired

of in is Knox-Henderson which Dallas, we closed part on a the corridor. portfolio Finally on Henderson Avenue,

the in the last perspective Dallas turned general The the We have must our Knox-Henderson for a our market and work market into for retailers. be years studying given several many of from been of has live years. many Avenue shifts specifically Henderson popularity of many demographic point Dallas And ideal for over a entry play will Henderson retailers. have positive

for looking As similar performance in I mentioned and in Chicago Place our demand, Angeles. Melrose tenant tenant to in that's before, Los corridors Avenue with we're Armitage entry or always

long then, more level. for logical key And for been local for corridor it the head native recently, further ownership that has then retail this and to be long-term for will shorter our quite where upside. the residential current add road. supply plans the the us in then investment add locations potential releasing of general became was performance retail of an before densification the prior rental barriers is a we're yield a And down the in further And checks taken obtaining the next that's be initial important that rejuvenation now restaurants to term the a down demand point a the took quarter, includes The specifically, and step. rents us some The the will some additional parking Henderson and of approvals opportunities where a next began size and works, tenant enables going in execute Henderson corridor all for Dallas a connect this yields we great while the to of midpoint further road. position in tendency. adding more great plans. in showing in from the vary opportunity, which redevelopment the But clear boxes. Henderson the the Henderson was good Because these COVID important perspective process growth was digitally some ready the retailers years of years in several and ideal. look then be gives can on variety Sprouts in redevelopment, and value zoning and growth already portfolio ago, comprehensive. where significant starting a entry From further new those market can perspective this all pricing to implemented, dots. The the successful that of acquisitions Several market market, Additionally, Supermarket with parcel street will up.

X% components, then But growth. going have kind with us acquisitions sure to that of existing importantly, being from growth portfolio. these making contractual is see about tenant compounded growth roll accretive. And from complements the and growth growth redevelopment then about are value our the even should both addition are long-term more We of then incorporating our that accretion mark-to-market annual We X%, acquisitions take higher. be and to add the

to with to quarter, our Turning closed deals deals are And remains on we complementary plenty interest in Fund are last out. let fund Amy very finding Two detail side, rates, very rise the V Even strategy. contract. consistent fund profitable. under million pencil deals $XXX this platform and of that with that still previously our in we were that I'll the discuss our of and investing

quarter. growth driven the growth create by our a fund and driven and last And short, good core see saw us our external I puts the thank continue we and John. going entire last will strong leasing investments to quarter turn team in to now want our to work that in I So their growth for by to internal call we our forward. hard position

John Gottfried

Good Ken. morning. Thanks,

We our start XXXX first year full are guidance and strong quarter off expectations. our to with earnings results exceeding a

quarterly growth core along sheet balance Our reflected results strong And remains investments. of from great with the nearly core XX% accretion and $XXX in shape. fund million our of internal nearly

no the mitigating next several have maturities. as walk We core rates upcoming within anticipated. should portfolio of all I'll effectively volatility as substantially our And years, core with rise thus ample earnings liquidity for debt shortly, our is our meaningful core interest through fixed

quarterly into starting our dive Now results. details, with the

ahead first of driven by key came in share a $X.XX Our four expectations our quarter factors. earnings of

and this leases, commencements quarter occupancy points First, new portfolio. driven sequential urban the profitable by street basis on of growth and our rent XXX

we to exceeded as above pass quarter in strengthen cash coming Second, reserves current in collections our credit accounts. tenant well period for due are as our collections on improvements XX% the both Core with expectations. continuing see

first will an prior within on we $X.XX up guidance. of recoveries of year our the And cash the initial We or we in guidance, assumptions initial $X.XX that these collections the within $X.X XXXX a track to that Additionally, assumed approximately FFO million, with from period and penny had cash of benefit half in full show outlined range share to recognized amounts land prior aligned of are our year. the expectation a collections. from with majority the of

from a over investment of penny a provide Third, business, on our strong of $X.X our accretive III against investment monetization $XXX fund the Amon million, million deals. will share color. FFO gain off a start of core closing and approximately profits to were Fund a for approximately of we are additional a that with finally fund Fourth goals, and

momentum upside XXXX at this continuing. our optimistic full increased And should of terms the which earnings our In in see positive we excess we we represents conservatively earnings guidance, midpoint FFO year-over-year that of further guidance, growth I year have XX%. am

on to first moving Now our quarter NOI. same-store

by also strength comparable period driven with the NOI three over saw in X.X%. same-store We was growth of our items. growth The

abatements. significant improved improvements credit conditions and in losses First, credit with

occupancy of quarter. in portfolio improvements this Second, and basis urban increases, our points sequential including XX street

that quarter, street spreads leases XX% leases in of Third, that on quarter. the including positive during cash on occupancy commenced took the growth during excess

Now, store that comparable the cash of same are were growth this is included it's out recoveries inclusive X.X% also prior results. worth pointing headwinds are that quarter from

we we velocity, in portfolio. our years. that are as with XX% our we seeing occupancy both this growth core remain same to goals, on store continued optimism XXXX increasingly growth, on X% our are we to And by should the continued along but or fueled we leasing that our but importantly, of more expectation more mentioned, importantly rental our being able our to numbers, As achieve improving reflected next optimistic Ken with are is Thus, rates internal several beat within track feeling confident be rent for expectations. and the

improvement same And also in with also growth growth growth model these solid rates, on has leases with approximately by we street rental XX% suburban year. while a of it's to lease addition predominantly half And of signed we during as out multi-year same high assets this our we yet rate signed increased urban XXX not this spaces. base to basis are not spread XX second all-time of rata yet open than ABR pro the the more space first XX.X% represents the on our an by XX.X% of an basis pointing excess what opened rental on out meaningful compared basis occupancy $X.X of urban our but points our commence seeing suburban our to the not approximately rents. remains open portfolios, this street And a prior the portfolio but to further that not store basis of X% quarter, In XXX XX% occupancy only we're worth seeing signed growth points. and our up, Over yet it's quarter consistent between or that And point physical leases our rents across that scheduled XX additional we XXXX, are are saw pointing on from quarter, worth at seeing XX. but current our March annualized leased our in outperforming in embedded points. million in of growth and lease

in and During worth respectively, and equal. the created we’ve spreads not quarter, leases. and GAAP these And are cash of that spreads we've a recognized approximately XX% X% past, it's on said renewed reminder executed as the all new

spread growth print fact XX% of the And the contractual suburban. to this a a X.X% and a on lease. growth need X% example, own lease excess our a we is street driven received in we street on of with by lease cash compared generally XX% the lease from economics that assuming a achieve on to XX-year For portfolio, to equivalent term, suburban spread

long-term But balance It's variable keep which on use hedge And strategy book. within our borrowings we few of already of given structured the is starting our with rate our to interest fund rate fund obligations funds, ownership locking core all Lastly, percentage But the our our rate limited the will exposure is very the reflected wanted range. to our our rate in business, of for exposure upcoming touch core pretty with on our update. in higher variable in items And substantially ranges transitional our utilize rate in fund final within Thus, And need our interest to through addition volatility fixed the years. to fund expectations is given to rata no rate the variable leverage to of a core investments, Amy to overall term to XX% swap exposure, debt. virtually substantially is generally pro interest have core floating in market the strategy we short flexibility, debt in And our nature approximately sheet. earnings XX% furthermore, important ratio exposure. between our modest finance guidance. profitable you market, core our a is of on our our GAV have XX% with core rates all swap a managing to impact mind next point several and the earnings expect, debt provide core we our portfolio the interest debt to maturities of would a low-XX% our portfolio. that rate I minimal of for as forward-looking rate

issuance we a to funding, interest from program access that acquisition gross growth. under finance the from of cash of ownership, all Whether to $XXX structural fuel we avenues equity roughly funded various year-to-date, at $XX call. business book, equity approximately our ATM the our repayments of The on promotes sold price our our it's in was a million of reminder, issuing our have monetizing on approximately retain as had announced fund embedded capital moving Now prior acquisitions, $XX.XX. And substantially in external flow. inclusive or to we have Albertsons our million

to increased business. only external of year expectations Our the our strong over In core Amy great corporate also sheet had summary, with and discuss core a no we fund XXXX to liquidity in on facilities. turn meaningful optimism debt internal not our earnings, on multi-year I maturities, now with is with shape ample will growth. start our balance our but along on to the very call

Amy Racanello

like on platform, provide Fund I'd with beginning our fund brief update Today, John. a Thanks, V. to

yield approximately now shopping high selectively center are totals First, we billion. to our $X portfolio, to continuing add which

release, million, a of both and two DLC with as first During press Management. Texas properties in total quarter we our $XXX acquired partnership detailed and the in for

two cost square a a square approximately market anchored blended base dense making per executed XX% Our for XXX,XXX XX,XXX lease cost. [ph] foot a radius XX%. Groupon Village foot, the Marshalls exceeds by for MSA lease in square Austin already and which to shopping XXX,XXX, Navy. rate discount within most V La increasing represents Old replacement is these Since population some the $XXX center to air in X-mile a portfolio. the with feet, The substantial is Kohl’s, have Frontera Burlington, we from second Fund it acquisition, open our

currently The Woodlands retail Plaza Wood traffic per XX% tenants Including square The commitments. the XX, retail and XXX,XXX an of allocated in Next a opportunity these three vehicles $XXX recent approximately located sees include Key day. Kirkland's with along highway some centers Sketchers interstate Fund now comprised capital Ridge acquisitions, of is occupied. add value our we've XX% property foot of XXX,XXX property which is for leasing. nearly V million

discussed, million in previously meantime, are VI progressing. our we we gross As still August. V, $XXX expect deploy to of have of Fund in investor the in which period And buying investment the before fund’s approximately the discussions power Fund end

material a we certainty to that only borrowing more we While yet on cap capital positioned Overall, having execution matters of but bumpiness seems are a seeing we're in material fronts. shift due to impact to markets, to how seen on be the haven't the spreads. and like in our lenders, both sellers we not rates, also our matters sponsorship more

our platform. year, fund sellers remain dispositions active to across Turning we this

anchor in the property February, previously discussed County, For in million a Crossing Fund Westchester supermarket York. $XX as we New III of sale example, completed Cortlandt in

three sold but its Post's Additionally, interest Fund portfolio retained recall the Storage was Post' of banner. XX% XXXX operating in This under portfolio owned self-storage III that fund Storage company. properties a previously in XX

REITs was first of for million, million. interest was the which monetized OPCO the During $X.X share $X this quarter remaining

embedded fund. of we now a of As striking this distance recent dispositions, are these within promote result in our

first Additionally, Northeast the IV during of properties total for the Grocery quarter, we portfolio last sales a $XX the two million. completed Fund in of

balance the sheet. Turning to

extended and Alamo this XXXX excludes two four capital that extension is expected million expiring is be As of or are normal to Of million loans, or $XXX which use pertains debt refinanced or options. without is This XX% amount third Joe's have in of The the the Trader $XXX $XXX fund and million business. a subscription City commitment first quarter, Drafthouse. during spread over of we backed in facilities. about debt to in balance is mixed refinancing. Point The underway well or Target, Point, our we and course downtown Brooklyn, property quarter, on anchored the City matures by

had we a different have we Point the through few City and global to navigate positioned believe property them, the While challenges, that crisis is in ahead. well financial to pandemic, this thrive among COVID-XX years the

at leases. year, August the Point at population our the to XX-minute to has is grown property addition new over we've of within decade, an the exciting Since largest example, a past momentum of six City XX%. continues walk executed last And anchor For lineup. increase. level, these Primark, The

continue position must as shops, City as necessities food as for a We specialty well to destination and visit Point entertainment.

fund remains a our continue that At positioned to to with So well in open and your march a conclusion, call will time, the platform successful investments existing strategy we of questions. this portfolio allocation towards capital stabilization.

Operator

[Operator Our from Capital. question with Todd Thomas first KeyBanc comes Instructions]

Todd Thomas

Hi, thanks. morning. Good

investments, to year First in of around the start capital question terms strong pretty deployment.

leverage? that updated the then $XXX investment was initial if missed for range change investment you're the either where around but to relative and there the for included John, core or can fund you million utilize is guidance? tend pipeline, a more comment this, little the in the $XXX a broadly the bit changing And whether and would investment in activity more you little funds guidance Sorry million to and to core hurdles I any bit

John Gottfried

the Todd, Yeah. point. first on

provide an So at I'll about we that did to put how Ken thinking individual and on we any update assumptions update year pipeline we're detailed it me not let out that. the end. turn over And to -- of

Ken Bernstein

Yeah.

think assume vacation, capital is not going on not public the and our our fund especially business Todd, is that on I fair it's So, dependent team markets. because to acquisition

We have that much more latitude side. on

We've expect us ago on that fair we putting since two be out see quarterly be revised update should always it. But to basis. us you our annual of to then to have I months a each or assumption our expect busy. would component and that guidance goals updated with met already, think yearly having to struggled So certainly a

As will do is relates of ago, sponsors of we months selling to shopping there somewhat debate on months be closing interest Fund business months think record will upside XX counterbalance some discount movement deals about not the V suburban in also have especially that acquisition. believe the represents and in has it, I’m perhaps enough are expected and certainty markets. prove concerns already to I'm in yield everything I than that around we the seeing tier who pieces, around that of population growth six that think predict. the opportunistic, costs side track importance first the some our the add to We're moving of in assets replacement going are exactly remains stands tell fund value more borrowers while pricing you capital already. that What of interest center sure that work in Final buyers execution going be the should community trying the may not. our on where have I can rates. tenant shifted to I versus what it be going track at to is yields, of specific of but buyers pricing certainty record continue because to borrowing execution, digest not proven ago, perhaps more high do we also for having spread where proven the but a I the I fund able that. capital to buy the And means a general read for increasing That rates quality stronger majority three benefit. ago, it for the of

be less do of accretive a And core use capital once think going were Now about we certain pieces. dependent debt. interest speedbumps our growth be again, on doesn’t it’s our cost ready that rates markets. to [indiscernible]. buying on dependent lot But of side, in it recycling we current are opportunities, the through of where get although the capital interesting opportunities there corridors There to I long-term in because that see don’t public on we the are move think all do continued I

Todd Thomas

could corridor then that's kind we redevelopment Okay, you helpful. the quarter look ahead like? in sort there. what on just of development And in as to look what about spend, Knox-Henderson and and Dallas, incremental might timeframe Can you're of investment shift you along if any yield the expectation the contemplating in and the talk spend expected

Ken Bernstein

and we're don't have want that it do where the to beyond. it's see in redevelopment plays But eights see Sure, all and out. only And to And yields makes space, what demand incremental like there tenanting yield be unlevered sense. to based we accretive. than unless you're it the sevens investing that we the on re more and dollars, so of tenant a going a to we extent is right development now, think just meaningfully that to enough there's going

good. so And so far,

a dynamic got in stalled then my prepared and long COVID. surprisingly As a I process. they job did mentioned very ownership remarks, of approval And prior with good

taking a be place that's in, put say. the are in be Henderson our -- align. corridor, Avenue. they team want in the and growth. So it's that whether pieces profitably of triple. for that time kind that hoping Place see Soho, But going to beverage our to in terms say in well could visited for over ready another it a with continue population it's because five creative M LA play Avenue next the you and this and to Chicago, into initial and I'm one stars this and we for of And be this deployment or in let's this And than that take prior involved But or goes of we're a a the is work take the list if the for that And us, turnaround, million, to they're now position geographically us On it's double come here, going see tenants timing, a may Todd prior then to ready on Todd, live could because is different more focused, on. very meaningful food the effort in stay going matter variety for way believe and the XX/X think projects and to vision from of in we to and capital the that's $XX more we to to team avenue it. I or us, XX retailers still If years, months see Armitage heavily some a Melrose where could you're No it. market to the of we're want Street XXX the what, lot of complementary but very

complimentary movements, of it's helps the do. reinforce we So as to retail. and a very to It's some dominant street complimentary demographically very player kind our otherwise. it in position what of this And

Todd Thomas

million around Okay, that's million helpful. that and in total so double that $XXX you're -- And so or along $XXX over corridor timeframe? just that That's corridor in to investment or be that could total. triple opportunity the clear, saying investment around

Ken Bernstein

And let that. explain me

But also works matters. for a over meaningful has learned small that always if really, us, demand are can the we a congregate given down to want retailers enough all us those and where of day and a to additional grow supply to and redevelopment move marketplace. make we've spine one. attributes the barriers because road, where we this acquisitions, we our investment marketplace, want additional including years, may for to then going what And through investment retailers not a take really see for entry So having dominate in it, is what while best is can

Todd Thomas

Okay, great. Thank you.

Operator

comes Jefferies. Tsai with Our next from question Linda

Linda Tsai

like Yes, buyers I you retail competition think for previously, out? case, is less if is still morning. hi, the who's good street competition. you dropped said this What And of assets? seeing were

Ken Bernstein

in be let's our retail. everything's world, So clear in

is oh, open retail in competition gosh, think, disfavor. But retail, So we even still there's air everywhere. my institutional

only step public think the that difficult made one private compete by smart, very street in And only and I retail not or presence. a recovery, are been that Williamsburg two good. cycles, are investors much there they the markets, the dropped markets. those deals, Most group variety there's marketplace. strong had the hard Soho, stay know, COVID-friendly was in active out. the not not investments. a still prior more even privatization of volatility rental smaller REITs if business. other office today. given now. that moved we a obviously competition. with of as just two a focus not There more work just But that's a that there there variety of on not in cycles, active. it's of GGP, but prior competition. much or have So of to the very the to Same them, supermarket-anchored to has we're funds his But markets, But preferred they or there where And Linda there which In very got you that business have three ahead not less it's are thankfully, primarily has institutions. out The within good tough other all cycle, three their retail compared necessarily other reentered types to were in in about been We They're two of presence, overall. kind and have one There's elsewhere. had It's or around There them. through right and capital, seeing defensive,

Linda Tsai

your you how then tenants like terms the to it traffic are expectations? as on there to relates sales urban street of and relative barriers What they're telling in are And trending Thanks. seems thesis. retail recovery it

Ken Bernstein

rent residential this the trying return play And that commensurately. it that bounced points. an out going renew luck. percentage rebounded the And to And ago for few you live and out who market year a critical indicator. those work thought And Turned to any to was be first Because wrong. to was sales in critical Good leading a you work And then for rent up rebound, saw think piece. with retailer the good we going of our back. luck. has is to a in what you're We of apartment caught were climbing be environment, Manhattan, so thing. Return off indicator. thus the the the apartment to guard, we was of us leading activation Yeah, COVID. office going

different really So a about urban It's a which not been the old it's return was to dynamic. narrative. work,

Now, everywhere. that's true not

And our Some XX Midtown Manhattan, are or markets certainly, really you those are markets, if still lagging. that yeah. office markets salad bar, urban own a

going feel to You're our it. Thankfully, that's not business.

lose are there has out they're rebound, the And are up telling about fact our to what that the negative to positive by but be because of the sales. bunch pre-COVID forward positive the retail And not can't that those get us, they their can only been real look dark we majority sight want I've are prior thus of that's out. so the to it's being estate shopper. because areas in comping different about, talking been comping state while to re-embraced already. tenants so by retailers in some the are whole their many a economy, we sales vast issues physical showing reimbursed And days, They while we of

Linda Tsai

That's helpful. Thank you.

one, compare last acquisitions Hollywood core how profiles you at West Henderson whims between collection Just you the [ph] different the growth do Street. when and the assets, the year-to-date, per Spring look

Ken Bernstein

we contractual the see is, of key lot Spring a simply going bottom to strong. it will my board and if them drivers Street And for hunch growth, are across above be the contractual mentioned, some while the everything will it value profit retail them, all occur provide more almost to the street level that our own of that should, the we're significant in significant about. and as deals densification layer to have the and talked of of to that next most value. sleeves overtime add going more really on we line above just through of redevelopments redevelopment then is can roll that a top-line of hunch on depends growth. there that we what might is add you roll above My So sales ground it then up be of Because then because growth some

see complement next rents to are like a you And grow looks thus tenant Day much in of contractual like then the what we down tenant X% excess growth. and like thus be day in good and I some that the as growth, one, years more feel going can of over you. our these that sales do. accretive. So existing without our one, We road, it it we're to And we'll position Thank if other strong X% and internal pretty events if almost occur, exception though. several demand, have

Operator

Bilerman question Our with next Citi. Michael from comes

Michael Bilerman

the you're Ken, even just underwriting just partner's the that you're environment, your of pipeline I putting obviously was war, are year, throughout opportunities it's and is and terms going Hey. been it's acquisition environment? growing the there's It’s the wondering, way it's in looking last opportunities, has last to prior and pipeline your I'm bit of interest transactions. it's that to at and the on XX you're of the whether the throes XX terms whether Michael. the retailers last meaningfully rates, COVID. How the inflationary if pressure obviously, the elements -- obviously started in I'm overall underwriting discussions your whether and wondering but at you with the how little over just changing the interest XX changed pipeline? all, way discussions approaching has a your The in really days, XX you whether about are many talked with sort so environment, of pretty curious days. to environment rates, And

Ken Bernstein

Michael, And, challenge you trying the song always a find for I'm me. to with is Yeah.

I'm our So touch different chime would can have doubt company. because there with the is heads in for it. But change may we this struggling, later, us when inconsistent sand are XX-XX-XX has is And I just days. pieces who a let's that there no be the think much in been to but as few and so of on a last I over to stick

of Let's the of in And just the start I check. retailer friend to the the on your different seeing CEO really. signs out any major consumer to was spoke a businesses? you morning, double tapping Are not a of answer side, retailer mine, who's this

in keep all this just what mind let's means. Now,

the shift seeing of COVID what all, pull versus retail forward that is spend, you're from of First still the out. now, the for playing kind that shift

very a this say and of to Secondly, in about the about the do if house to and supermarkets. need for want watch retailers with uncertainties. their stores. target then feel of again, to They variety last showing the the And from doing The in because for because these they've up good a they because we closely business with given dollar the jobs, with do side, we good But of and business primarily their on out And that mortar about them. owned ranging type jobs pocket, couple of shape. all dollars stores is other the about of part consumers get retailers business consumer Michael, good I'd they have years. their discretionary bricks and that we And most good climbed in the that. are they feeling They feel very as omnichannel. out retailers that's especially strong feel we and the one

demand, about inflation. thinking thinking Then in up. of this borrowing it's their structure being terms watching negative thinking The around are costs about in so of cautious I you the discussed the more terms We're dark So holding positive certainly about this And of COVID. carefully of markets. it in far balance the is terms during sheet, of up. capital there leases, days and is were The sellers. more many

If you estate, high froze. you quality, want retail real

our there's what, much sell to I bidder For coming this started they're now around know didn't trades need the endures to saying, most is capital. certainty, that they lot And to back, a And I They know you saying, of started we'll getting highest part, benefit. see so need because stuff. execution. the done. good we that

it this in opportunities. of you what tell bad. pricing, can't not I means what it's So in terms terms means But of all

of They're to unfortunate. inevitable. a get has And our that are Although economy headaches also through go the probably we this. through lot

Michael Bilerman

this the year, I guess, due I and lot a oriented. adjusting baked in pricing deals fund have -- predominantly have to you you are coming all, of loans And the at I environment? recognize Should also you you account on guess for

a of capital trying good you these at willing where of to of just all But sense what you and there's some you're finance been get likely any whether to sense a pretty at. And your deals so have can of cost on spend. change I'm

Ken Bernstein

Right.

lending So a have strong base Thankfully, not immune we are pool. rates. we to rising

But execution. this taken good get we underwriting our account. So into has

we’re shouldn't core And refinancing of of kind side. that -- existing in assets that's about assuming we're assume right bearish hedged John or in of should otherwise. walked terms And everyone's interest through well so you you numbers the case expect rate, our base to on very

Now deals into maybe of it is let's not we deal. strong Absolutely, weren't winning bid terms Counterbalancing the we come has for new on, win now. that to And maybe previously pricing play. of demand. in that sight tenant lose

new into rates, demand, interest And So environment total on something we will obviously I think incrementally would return over tell we interest based when about is the I years. everything retailer you, on I we concerned next comes we're growth also the with place, seeing. but about buy am well, bullish it. that am five rate the take what the

Michael Bilerman

on And just new lastly markets.

you have Is new on? other about at, that should expect to looking anything little in acquisition. a there bit markets Texas pipeline close you you're talked we the You that where

Ken Bernstein

we is accretively? that markets do they within next we those I So way Would within than where can't it. do no I the Another we've every additional close our Miami. to be? as to gotten an toured should other this and There definition we're to Thankfully, that. want going reason sold well. there's competencies evolved, has folks? right scalable relatively Florida not. I'm time, Michael, platform believe way we markets. because every investments assume can And a at saying are played very in with But nice forever evolve is core to that's saying markets, of be make of the market core years, but markets well And lift. predict maybe back when remains in our us tenants small maybe, on expect our certainly those all year, competencies not our we our multiple prefer specific in forever And the assets with you the

Michael Bilerman

Thank you.

Ken Bernstein

with I up a didn't song. come

Sorry, Mike.

Michael Bilerman

okay. It’s

Operator

from Our Craig comes next Schmidt with Bank America. question of

Craig Schmidt

has small occupancy but over pre-COVID your when levels, quarter? occupancy the shop am last your And falls gain then the levels. drove this overall what still wondering you. thank total It small shop to the huge I'm occupancy Great, appears that may occupancy improved in return below. pre-COVID

Ken Bernstein

want to you and with have do that John, start I some observations?

John Gottfried

space, we spaces, and is difference every our give to Craig. a walked will category. on proxy with just not basis And we fall occupants activity pipeline, the shop usually small given always suburban is of talked that that, as caveat that in street to always which street best of between lot through What did into think I hey, I created the and tend rents. equal. a start range COVID, our see we and not street the Yeah. rents is given urban just that rent the did point of And It’s the and and see occupancy our we

I we're an So say get continuing, to growth view in would full XX% And would of terms say that and about effort. as velocity occupancy. up outsized leased as And lease what talked we've I we that was still we economic we at in timing, are and is there today.

Next is think XX to target. XX months, still I our

Ken Bernstein

all we so to or there. tenants, saw financial they global were and think And getting are back their but crisis, XXXX forget. consistent their we on I XXXX to tenants, add they COVID From the Craig. Dating mom know, just really me they strength XXXX that because Let these feet. observations our hit, that, all And lost until kind back of pop got satellite we to crushed, our financing.

took than last PPP, variety to our much some them healthy a crisis. COVID of financial remained very other the -- recession this Now thanks going space But to of out. more shop through interventions, global thanks COVID

the all with well that is concerned is we I'm you're with about see continue inflation chain, seeing recession deal tenants in otherwise, but so, that consumer positioned to good. and potential looks And run the and shifts are supply will those Of to that and up. areas so far,

at rents at peaks, far, So decade least long. are

have it, street are our right, who that whatever satellite And of of in highs, hit of as withstand COVID. know, why maintain so retail significant there to side. hit on good in tenants that recovery two-three think is bumps off decade sure we us. make goal than that's front COVID rather I about us And feel before see years that lows. during we those And front significant Conversely, is can hard gains right got you got you'll

Craig Schmidt

Avenue this Great. on retailers checking your the one to other. for your location? appetite portfolio with have Henderson Did And an include then due diligence just

Ken Bernstein

our what simply what want. they -- we're don't want. We call Craig, us Because we they pretend just know first they not are they listen [ph]. to when tell

Craig Schmidt

Great.

Okay, thank you.

Operator

Mueller comes with question from Next JPMorgan. Mike

Mike Mueller

potential to sticking as Maybe triple can Hi. double tied much or redevelopment, Yeah. investment? is with for second, or that How that opposed to visible a about you the to incremental of Henderson development talk acquisitions?

John Gottfried

additional the Michael. I our I'm the And team busy and But There value roughly, what ride to I because is now. Half conversations. align very lot in creating of overtime. hate buy acquisition wrong And got just is a coattails, XX have and folks parcels other And but then we've you Half parcels guarantee on stars see. that. letting that we estimate, we'll could are to

Sprouts with we there. is someday. in So of Then else avenue, the everything see of end based a freestanding retailer very it. did Supermarket of right at front And for a mention, parking we large demand redevelopment will one out on I amount timing, and the that have

I retailer the at years. a we of. there's much but And can work be say, land a part because why of then And activate other the respectful thriving day is that to to have that’s occurs. like redevelopment next who have parcels table seat let’s over or a couple be that that they put of redevelopment densification there and couldn’t Some would predict dollars to we when sooner there

which have guess to way and half when. we’ve But I periodically. and you out I What update tell we quarter to we the right half the predict Maybe combination deployed. can the other gets you I So, stick you in will with, I’ll I not think think is involved way periodically assuming acquisition. can’t component promise the of of play but that And I if every today, and been redevelopment they as triple. capital densification, seen hits exactly things markets I will,

Mike Mueller

may talking What started Henderson apologized. rates about that I on core and Got you the including rate, for it. was But cap year-to-date heard And heading cap talking XQ cap are and have year-to-date the about I when rate you’re acquisitions investments. the missed, I fund acquisition. path,

Ken Bernstein

either like. On and take two the bracket depends less fund on or because side, points XXX just really I’d it's more give been what seven going XX points. don’t hovering case, Amy and basis looks We NOI basis give or year with in take buy year or -- I’ll about it Fund it or sevens between in. in say But or a three and V, the

Amy Racanello

That's right, Mike.

Ken Bernstein

five probably mentioned, with recapitalization a whole I've we of assets, about to then in a hovering and of them going And trading a with these of other fives. then that to into in a lot was the probably And Williamsburg. the just And remember, things need some pieces complicated get stabilization low-fours. moving in others stabilized it host

Mike Mueller

you. it. it. was Thank Got That

Ken Bernstein

Sure.

Operator

Green question comes from Rojas next Our with Street. Paulina

Paulina Rojas

NIO are this. mentioned But X%? Good if I I didn't X% your growth see any and apologies same morning. confirming My explicit missed you it? of guidance to prior property between

John Gottfried

of remarks our not the the sort in our guidance. about good of But individual year we within did feeling given I We strong are pretty think update any assumptions Paulina. my start. Hi, prepared indicated,

based our it, first the haven't and pipeline, but upon quarter? So updated lease optimistic feeling very what in happened

Paulina Rojas

closer read high not to comment. I'm -- that you're of not be read to what expecting -- or I guidance the like, to Should that, sure probably that your prior how end you're

John Gottfried

it. That the specific velocities leasing appropriate and particularly first but be out. That's certainly we're pipeline giving we're how not But would quarter to in would way playing that trending. think the be way about came as it, guidance, about thinking our

Paulina Rojas

for that's if nuance reserves the Okay, wonder and seems Or and current there? bade regarding if expected. I than And were debt, perspective that your period there's any materially it year? entire the changing quarter better then, for the

John Gottfried

No, it we that was we come I expected. that of than things did the that in stronger think one highlighted

very the Some remaining tenants us dependent paying in few office the the XX that weren't location. of were

pretty office a and those return come back amount, seeing to nominal up and functioning. tenants So we're

positive We So a no pulling that's a trending crossed. think direction. fingers also in

Paulina Rojas

you. Thank Okay.

Operator

closing Ken questions further like time. I'd turn remarks. to any showing call not I'm to for at And Bernstein any this the

Ken Bernstein

Great. us. everybody updated on to the and Well, thank continue we of joining that to quarter you keep progress next you, for We'll make. you speak all

Operator

presentation. today's concludes does this gentlemen, and Ladies

wonderful You may disconnect now and have day. a

Acadia Realty Trust (AKR) 3 May 222022 Q1 Earnings call transcript