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Segment Reporting
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting

12. 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 condensed consolidated financial statements and are not presented in the Company’s segments.

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

 

 

For the Three Months Ended June 30, 2023

 

 

 

Core
Portfolio

 

 

Funds

 

 

Structured
Financing

 

 

Unallocated

 

 

Total

 

Revenues

 

$

56,376

 

 

$

33,572

 

 

$

—

 

 

$

—

 

 

$

89,948

 

Depreciation and amortization

 

 

(20,035

)

 

 

(14,021

)

 

 

—

 

 

 

—

 

 

 

(34,056

)

Property operating expenses and real estate taxes

 

 

(15,055

)

 

 

(10,536

)

 

 

—

 

 

 

—

 

 

 

(25,591

)

General and administrative expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(10,643

)

 

 

(10,643

)

Impairment charges

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Gain on disposition of properties

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

-

 

Operating income

 

 

21,286

 

 

 

9,015

 

 

 

—

 

 

 

(10,643

)

 

 

19,658

 

Interest and other income

 

 

—

 

 

 

—

 

 

 

4,970

 

 

 

—

 

 

 

4,970

 

Realized and unrealized holding gains on investments and other

 

 

1,815

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,815

 

Equity in earnings (losses) of unconsolidated affiliates

 

 

924

 

 

 

(2,361

)

 

 

—

 

 

 

—

 

 

 

(1,437

)

Interest expense

 

 

(10,990

)

 

 

(11,099

)

 

 

—

 

 

 

—

 

 

 

(22,089

)

Income tax provision

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(165

)

 

 

(165

)

Net income (loss)

 

 

13,035

 

 

 

(4,445

)

 

 

4,970

 

 

 

(10,808

)

 

 

2,752

 

Net loss attributable to redeemable noncontrolling interests

 

 

—

 

 

 

1,091

 

 

 

—

 

 

 

—

 

 

 

1,091

 

Net (income) loss attributable to noncontrolling interests

 

 

(735

)

 

 

6,168

 

 

 

—

 

 

 

—

 

 

 

5,433

 

Net income attributable to Acadia

 

$

12,300

 

 

$

2,814

 

 

$

4,970

 

 

$

(10,808

)

 

$

9,276

 

 

 

 

For the Three Months Ended June 30, 2022

 

 

 

Core
Portfolio

 

 

Funds

 

 

Structured
Financing

 

 

Unallocated

 

 

Total

 

Revenues

 

$

53,225

 

 

$

31,034

 

 

$

—

 

 

$

—

 

 

$

84,259

 

Depreciation and amortization

 

 

(20,061

)

 

 

(14,910

)

 

 

—

 

 

 

—

 

 

 

(34,971

)

Property operating expenses and real estate taxes

 

 

(14,932

)

 

 

(10,263

)

 

 

—

 

 

 

—

 

 

 

(25,195

)

General and administrative expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(10,661

)

 

 

(10,661

)

Gain on disposition of properties

 

 

—

 

 

 

12,216

 

 

 

—

 

 

 

—

 

 

 

12,216

 

Operating income

 

 

18,232

 

 

 

18,077

 

 

 

—

 

 

 

(10,661

)

 

 

25,648

 

Interest and other income

 

 

—

 

 

 

—

 

 

 

2,961

 

 

 

—

 

 

 

2,961

 

Realized and unrealized holding (losses) gains on investments and other

 

 

—

 

 

 

(26,383

)

 

 

100

 

 

 

—

 

 

 

(26,283

)

Equity in earnings of unconsolidated affiliates

 

 

788

 

 

 

492

 

 

 

—

 

 

 

—

 

 

 

1,280

 

Interest expense

 

 

(8,519

)

 

 

(10,703

)

 

 

—

 

 

 

—

 

 

 

(19,222

)

Income tax provision

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(209

)

 

 

(209

)

Net income (loss)

 

 

10,501

 

 

 

(18,517

)

 

 

3,061

 

 

 

(10,870

)

 

 

(15,825

)

Net (income) loss attributable to noncontrolling interests

 

 

(366

)

 

 

15,817

 

 

 

—

 

 

 

—

 

 

 

15,451

 

Net income (loss) attributable to Acadia

 

$

10,135

 

 

$

(2,700

)

 

$

3,061

 

 

$

(10,870

)

 

$

(374

)

 

 

 

 

As of or for the Six Months Ended June 30, 2023

 

 

 

Core
Portfolio

 

 

Funds

 

 

Structured
Financing

 

 

Unallocated

 

 

Total

 

Revenues

 

$

106,172

 

 

$

65,615

 

 

$

—

 

 

$

—

 

 

$

171,787

 

Depreciation and amortization

 

 

(38,694

)

 

 

(28,535

)

 

 

—

 

 

 

—

 

 

 

(67,229

)

Property operating expenses and real estate taxes

 

 

(31,164

)

 

 

(21,039

)

 

 

—

 

 

 

—

 

 

 

(52,203

)

General and administrative expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(20,589

)

 

 

(20,589

)

Operating income

 

 

36,314

 

 

 

16,041

 

 

 

—

 

 

 

(20,589

)

 

 

31,766

 

Interest and other income

 

 

—

 

 

 

—

 

 

 

9,788

 

 

 

—

 

 

 

9,788

 

Realized and unrealized holding gains on investments and other

 

 

3,393

 

 

 

24,995

 

 

 

184

 

 

 

—

 

 

 

28,572

 

Equity in earnings (losses) of unconsolidated affiliates

 

 

2,723

 

 

 

(4,131

)

 

 

—

 

 

 

—

 

 

 

(1,408

)

Interest expense

 

 

(21,660

)

 

 

(22,016

)

 

 

—

 

 

 

—

 

 

 

(43,676

)

Income tax provision

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(288

)

 

 

(288

)

Net income

 

 

20,770

 

 

 

14,889

 

 

 

9,972

 

 

 

(20,877

)

 

 

24,754

 

Net loss attributable to redeemable noncontrolling interests

 

 

—

 

 

 

3,166

 

 

 

—

 

 

 

—

 

 

 

3,166

 

Net income attributable to noncontrolling interests

 

 

(1,637

)

 

 

(3,647

)

 

 

—

 

 

 

—

 

 

 

(5,284

)

Net income attributable to Acadia

 

$

19,133

 

 

$

14,408

 

 

$

9,972

 

 

$

(20,877

)

 

$

22,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate at cost (a)

 

$

2,613,206

 

 

$

1,669,773

 

 

$

—

 

 

$

—

 

 

$

4,282,979

 

Total assets (a)

 

$

2,580,565

 

 

$

1,499,692

 

 

$

123,902

 

 

$

—

 

 

$

4,204,159

 

Cash paid for acquisition of real estate

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Cash paid for development and property improvement costs

 

$

15,560

 

 

$

15,010

 

 

$

—

 

 

$

—

 

 

$

30,570

 

 

 

 

As of or for the Six Months Ended June 30, 2022

 

 

 

Core
Portfolio

 

 

Funds

 

 

Structured
Financing

 

 

Unallocated

 

 

Total

 

Revenues

 

$

101,574

 

 

$

64,192

 

 

$

—

 

 

$

—

 

 

$

165,766

 

Depreciation and amortization

 

 

(37,736

)

 

 

(30,948

)

 

 

—

 

 

 

—

 

 

 

(68,684

)

Property operating expenses and real estate taxes

 

 

(29,572

)

 

 

(20,253

)

 

 

—

 

 

 

—

 

 

 

(49,825

)

General and administrative expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(22,598

)

 

 

(22,598

)

Gain on disposition of properties

 

 

—

 

 

 

41,031

 

 

 

—

 

 

 

—

 

 

 

41,031

 

Operating income

 

 

34,266

 

 

 

54,022

 

 

 

—

 

 

 

(22,598

)

 

 

65,690

 

Interest and other income

 

 

—

 

 

 

—

 

 

 

5,896

 

 

 

—

 

 

 

5,896

 

Realized and unrealized holding gains (losses) on investments and other

 

 

1,163

 

 

 

(11,816

)

 

 

100

 

 

 

—

 

 

 

(10,553

)

Equity in earnings of unconsolidated affiliates

 

 

2,405

 

 

 

2,005

 

 

 

—

 

 

 

—

 

 

 

4,410

 

Interest expense

 

 

(16,115

)

 

 

(21,032

)

 

 

—

 

 

 

—

 

 

 

(37,147

)

Income tax provision

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(24

)

 

 

(24

)

Net income

 

 

21,719

 

 

 

23,179

 

 

 

5,996

 

 

 

(22,622

)

 

 

28,272

 

Net income attributable to noncontrolling interests

 

 

(1,486

)

 

 

(10,322

)

 

 

—

 

 

 

—

 

 

 

(11,808

)

Net income attributable to Acadia

 

$

20,233

 

 

$

12,857

 

 

$

5,996

 

 

$

(22,622

)

 

$

16,464

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate at cost (a)

 

$

2,606,083

 

 

$

1,729,074

 

 

$

—

 

 

$

—

 

 

$

4,335,157

 

Total assets (a)

 

$

2,513,011

 

 

$

1,788,567

 

 

$

137,306

 

 

$

—

 

 

$

4,438,884

 

Cash paid for acquisition of real estate

 

$

242,633

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

242,633

 

Cash paid for development and property improvement costs

 

$

16,248

 

 

$

9,033

 

 

$

—

 

 

$

—

 

 

$

25,281

 

 

 

a)
Real estate at cost and total assets for the Funds segment include $672.7 million and $660.0 million, or $275.9 million and $270.7 million net of noncontrolling interests, related to Fund II’s City Point property at June 30, 2023 and 2022, respectively.