XML 43 R33.htm IDEA: XBRL DOCUMENT
v3.22.1

Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2022
Fair Value Disclosures [Abstract] |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands):
|  | March 31, 2022 |  |  | December 31, 2021 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Derivative financial instruments |  |  | — |  |  |  | 5,279 |  |  |  | — |  |  |  | — |  |  |  | 7 |  |  |  | — |
Investment in Albertsons (Note 4) |  |  | 136,916 |  |  |  | — |  |  |  | — |  |  |  | 124,316 |  |  |  | — |  |  |  | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative financial instruments |  |  | — |  |  |  | 12,750 |  |  |  | — |  |  |  | — |  |  |  | 45,027 |  |  |  | — |
Schedule of Items Measured at Fair Value on Nonrecurring Basis | During 2021, the Company was impacted by the COVID-19 Pandemic, which caused the Company to reduce its holding periods and forecasted operating income at certain properties. As a result, several impairments were recorded. Impairment charges for the periods presented are as follows (in thousands):
|  |  |  |  |  |  |  |  |  | Impairment Charge |
Property and Location |  | Owner |  | Triggering Event |  | Level 3 Inputs |  | Effective Date |  | Total |  |  | Acadia's Share |
2022 Impairment Charges |  |  |  |  |  |  |  |  |  |  |  |  |  |
None |  |  |  |  |  |  |  |  |  |  |  |  |  |
2021 Impairment Charges |  |  |  |  |  |  |  |  |  |  |  |  |  |
210 Bowery commercial unit, New York, NY |  | Fund IV |  | Reduced projected operating income |  | Projections of: holding period, net operating income, cap rate, incremental costs |  | Sept 30, 2021 |  | $ | 3,016 |  |  | $ | 697 |
27 E. 61st Street New York, NY |  | Fund IV |  | Reduced projected operating income |  | Projections of: holding period, net operating income, cap rate, incremental costs |  | Sept 30, 2021 |  |  | 6,909 |  |  |  | 1,597 |
Total 2021 Impairment Charges |  |  |  |  |  |  |  |  |  | $ | 9,925 |  |  | $ | 2,294 |
Schedule of Derivative Financial Instruments | The Company had the following interest rate swaps and caps for the periods presented (dollars in thousands):
|  |  |  |  |  |  |  |  | Strike Rate |  |  |  |  | Fair Value |
Derivative Instrument |  | Aggregate Notional Amount |  |  | Effective Date |  | Maturity Date |  | Low |  |  |  | High |  |  | Balance Sheet Location |  | March 31, 2022 |  |  | December 31, 2021 |
Core |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swaps |  | $ | 385,354 |  |  | Dec 2012-Jul 2020 |  | Dec 2022 - Jul 2030 |  |  | 2.11 | % |  | — |  |  | 3.77 | % |  | Other Liabilities |  | $ | (12,040 | ) |  | $ | (40,650 | )
Interest Rate Swap |  |  | 116,530 |  |  | Mar 2015 - Jun 2019 |  | Mar 2025 - Jun 2029 |  |  | 1.71 | % |  | — |  |  | 2.40 | % |  | Other Assets |  |  | 1,054 |  |  |  | — |
|  | $ | 501,884 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (10,986 | ) |  | $ | (40,650 | )
Fund III |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Caps |  | $ | 35,970 |  |  | Jan 2021 |  | Jul 2022 |  |  | 3.00 | % |  | — |  |  | 3.00 | % |  | Other Assets |  | $ | — |  |  | $ | — |
Fund IV |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swaps |  | $ | 11,937 |  |  | Mar 2017 - Jan 2019 |  | Apr 2022 |  |  | 1.97 | % |  | — |  |  | 2.61 | % |  | Other Assets |  | $ | — |  |  | $ | — |
Interest Rate Swaps |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  | Other Liabilities |  |  | — |  |  | $ | (167 | )
Interest Rate Caps |  |  | 71,338 |  |  | Dec 2020 - Jul 2021 |  | Dec 2022-Jul 2023 |  |  | 3.00 | % |  | — |  |  | 3.50 | % |  | Other Assets |  |  | 54 |  |  |  | 7 |
|  | $ | 83,275 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 54 |  |  | $ | (160 | )
Fund V |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swaps |  | $ | 192,995 |  |  | Mar 2019 - Feb 2022 |  | Feb 2023 - Oct 2024 |  |  | 0.91 | % |  | — |  |  | 1.28 | % |  | Other Assets |  | $ | 4,171 |  |  | $ | — |
Interest Rate Swaps |  |  | 103,274 |  |  | Jun 2018 - Oct 2019 |  | Oct 2022 - Jun 2023 |  |  | 1.45 | % |  | — |  |  | 2.88 | % |  | Other Liabilities |  |  | (710 | ) |  | $ | (4,210 | )
|  | $ | 296,269 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 3,461 |  |  | $ | (4,210 | )
Total asset derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 5,279 |  |  | $ | 7 |
Total liability derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (12,750 | ) |  | $ | (45,027 | )
Schedule of Other Financial Instruments Carrying Values and Fair values | The Company’s other financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands, inclusive of amounts attributable to noncontrolling interests where applicable):
|  |  |  |  | March 31, 2022 |  |  | December 31, 2021 |
|  | Level |  |  | Carrying Amount |  |  | Estimated Fair Value |  |  | Carrying Amount |  |  | Estimated Fair Value |
Notes Receivable (a) |  |  | 3 |  |  | $ | 153,161 |  |  | $ | 150,696 |  |  | $ | 153,886 |  |  | $ | 154,093 |
Mortgage and Other Notes Payable (a) |  |  | 3 |  |  |  | 1,098,340 |  |  |  | 1,070,756 |  |  |  | 1,143,805 |  |  |  | 1,125,571 |
Investment in non-traded equity securities (b) |  |  | 3 |  |  |  | 3,656 |  |  |  | 5,831 |  |  |  | 3,656 |  |  |  | 4,062 |
Unsecured notes payable and Unsecured line of credit (c) |  |  | 2 |  |  |  | 727,931 |  |  |  | 727,727 |  |  |  | 675,933 |  |  |  | 680,171 |
(a) The Company determined the estimated fair value of these financial instruments using a discounted cash flow model with rates that take into account the credit of the borrower or tenant, where applicable, and interest rate risk. The Company also considered the value of the underlying collateral, taking into account the quality of the collateral, the credit quality of the borrower, the time until maturity and the current market interest rate environment. Amounts exclude discounts and loan costs. (b) Represents the Operating Partnership’s cost-method investment in Fifth Wall (Note 4). (c) The Company determined the estimated fair value of the unsecured notes payable and unsecured line of credit using quoted market prices in an open market with limited trading volume where available. In cases where there was no trading volume, the Company determined the estimated fair value using a discounted cash flow model using a rate that reflects the average yield of similar market participants.

X
- Definition Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19279-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=123874694&loc=SL7498348-110258 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration