Segment Reporting

The Company has three reportable segments: Core Portfolio, Funds and Structured Financing. The Company’s Core Portfolio consists primarily of high-quality retail properties located primarily in high-barrier-to-entry, densely-populated metropolitan areas with a long-term investment horizon. The Company’s Funds hold primarily retail real estate in which the Company co-invests with high-quality institutional investors. The Company’s Structured Financing segment consists of earnings and expenses related to notes and mortgages receivable which are held within the Core Portfolio or the Funds (Note 3). Fees earned by the Company as the general partner or managing member of the Funds are eliminated in the Company’s consolidated financial statements and are not presented in the Company’s segments. During 2016, the Company revised how it allocates general and administrative and income tax expenses among its segments to reflect all such expenses as unallocated corporate expenses. The presentation of the 2016 interim periods have been revised to reflect this change.

The following tables set forth certain segment information for the Company (in thousands):



	As of or for the Three Months Ended June 30, 2017
	Core Portfolio			Funds			Structured Financing		Unallocated			Total
Revenues	$	41,488		$	18,016				$	—		$	59,504
Depreciation and amortization	(15,534		)	(10,523		)	—		—			(26,057		)
Property operating expenses, other operating and real estate taxes	(10,160		)	(7,681		)	—		—			(17,841		)
General and administrative expenses	—			—			—		(8,864		)	(8,864		)
Operating income (loss)	15,794			(188		)	—		(8,864		)	6,742
Interest income	—			—			8,203		—			8,203
Equity in earnings of unconsolidated affiliates	982			3,358			—		—			4,340
Interest expense	(6,933		)	(5,817		)	—		—			(12,750		)
Income tax provision	—			—			—		(427		)	(427		)
Net income (loss)	9,843			(2,647		)	8,203		(9,291		)	6,108
Net (income) loss attributable to noncontrolling interests	(372		)	6,324			—		—			5,952
Net income attributable to Acadia	$	9,471		$	3,677		$	8,203	$	(9,291	)	$	12,060

Real estate at cost	$	1,984,601		$	1,501,406		$	—	$	—		$	3,486,007
Total assets	$	2,252,390		$	1,546,607		$	249,848	$	—		$	4,048,845
Acquisition of real estate	$	—		$	43,097		$	—	$	—		$	43,097
Development and property improvement costs	$	2,758		$	16,530		$	—	$	—		$	19,288



	As of or for the Three Months Ended June 30, 2016
	Core Portfolio			Funds			Structured Financing		Unallocated			Total
Revenues	$	34,693		$	9,225		$	—	$	—		$	43,918
Depreciation and amortization	(11,706		)	(2,972		)	—		—			(14,678		)
Property operating expenses, other operating and real estate taxes	(8,286		)	(2,997		)	—		—			(11,283		)
General and administrative expenses	—			—			—		(8,521		)	(8,521		)
Operating income	14,701			3,256			—		(8,521		)	9,436
Gain on disposition of properties	—			16,572			—		—			16,572
Interest income	—			—			7,415		—			7,415
Equity in earnings of unconsolidated affiliates	581			1,159			—		—			1,740
Interest expense	(7,113		)	(1,784		)	—		—			(8,897		)
Income tax provision	—			—			—		(111		)	(111		)
Net income	8,169			19,203			7,415		(8,632		)	26,155
Net income attributable to noncontrolling interests	(9		)	(8,228		)	—		—			(8,237		)
Net income attributable to Acadia	$	8,160		$	10,975		$	7,415	$	(8,632	)	$	17,918

Real estate at cost	$	1,528,848		$	1,118,897		$	—	$	—		$	2,647,745
Total assets	$	1,809,395		$	1,152,103		$	273,542	$	—		$	3,235,040
Acquisition of real estate	$	6,250		$	—		$	—	$	—		$	6,250
Development and property improvement costs	$	6,975		$	11,452		$	—	$	—		$	18,427



	As of or For the Six Months Ended June 30, 2017
	Core Portfolio			Funds			Structured Financing		Unallocated			Total
Revenues	$	85,933		$	35,570		$	—	$	—		$	121,503
Depreciation and amortization	(31,973		)	(18,620		)	—		—			(50,593		)
Property operating expenses, other operating and real estate taxes	(23,012		)	(13,926		)	—		—			(36,938		)
General and administrative expenses	—			—			—		(17,333		)	(17,333		)
Operating income	30,948			3,024			—		(17,333		)	16,639
Interest income	—			—			17,187		—			17,187
Equity in earnings of unconsolidated affiliates	1,542			15,501			—		—			17,043
Interest expense	(14,088		)	(10,150		)	—		—			(24,238		)
Income tax provision	—			—			—		(552		)	(552		)
Net income	18,402			8,375			17,187		(17,885		)	26,079
Net (income) loss attributable to noncontrolling interests	(804		)	2,416			—		—			1,612
Net income attributable to Acadia	$	17,598		$	10,791		$	17,187	$	(17,885	)	$	27,691

Real estate at cost	$	1,984,601		$	1,501,406		$	—	$	—		$	3,486,007
Total assets	$	2,252,390		$	1,546,607		$	249,848	$	—		$	4,048,845
Acquisition of real estate	$	—		$	77,785		$	—	$	—		$	77,785
Development and property improvement costs	$	3,753		$	42,550		$	—	$	—		$	46,303



	As of or For the Six Months Ended June 30, 2016
	Core Portfolio			Funds			Structured Financing		Unallocated			Total
Revenues	$	72,800		$	19,163		$	—	$	—		$	91,963
Depreciation and amortization	(25,201		)	(6,326		)	—		—			(31,527		)
Property operating expenses, other operating and real estate taxes	(16,848		)	(6,428		)	—		—			(23,276		)
General and administrative expenses	—			—			—		(17,873		)	(17,873		)
Operating income	30,751			6,409			—		(17,873		)	19,287
Gain on disposition of properties	—			81,965			—		—			81,965
Interest income	—			—			12,053		—			12,053
Equity in earnings of unconsolidated affiliates	1,173			2,521			—		—			3,694
Interest expense	(13,877		)	(3,058		)	—		—			(16,935		)
Income tax provision	—			—			—		(34		)	(34		)
Net income	18,047			87,837			12,053		(17,907		)	100,030
Net income attributable to noncontrolling interests	(2,831		)	(50,356		)	—		—			(53,187		)
Net income attributable to Acadia	$	15,216		$	37,481		$	12,053	$	(17,907	)	$	46,843

Real estate at cost	$	1,528,848		$	1,118,897		$	—	$	—		$	2,647,745
Total assets	$	1,809,395		$	1,152,103		$	273,542	$	—		$	3,235,040
Acquisition of real estate	$	6,250		$	12,287		$	—	$	—		$	18,537
Development and property improvement costs	$	10,222		$	45,668		$	—	$	—		$	55,890