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v3.23.3

Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2023
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):
|  | September 30, 2023 |  |  | December 31, 2022 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Derivative financial instruments |  |  | — |  |  |  | 74,479 |  |  |  | — |  |  |  | — |  |  |  | 54,902 |  |  |  | — |
Marketable equity securities |  |  | 35,197 |  |  |  | — |  |  |  | — |  |  |  | 85,403 |  |  |  | — |  |  |  | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative financial instruments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (46 | ) |  |  | — |
Schedule realized and unrealized gain (loss) on marketable securities | The following table represents the realized and unrealized gain (loss) on marketable securities included in Realized and unrealized holding gains on investments and other on the Company's condensed consolidated statements of operations (in thousands):
| Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
| 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Realized gain on marketable securities, net | $ | 2,371 |  |  | $ | — |  |  | $ | 2,371 |  |  | $ | — |
Less: previously recognized unrealized gains on marketable securities sold during the period |  | (2,371 | ) |  |  | — |  |  |  | (2,371 | ) |  |  | — |
Unrealized gains on marketable securities still held at the end of the period and through the disposition date on marketable securities sold during the period |  | 1,627 |  |  |  | (7,671 | ) |  |  | 1,282 |  |  |  | (21,947 | )
Gain on Marketable securities, net | $ | 1,627 |  |  | $ | (7,671 | ) |  | $ | 1,282 |  |  | $ | (21,947 | )
Schedule of Items Measured at Fair Value on Nonrecurring Basis | During 2022, the Company reduced its holding period and intended use, and projected 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 (a) |
Property and Location |  | Owner |  | Triggering Event |  | Effective Date |  | Total |  |  | Acadia's Share |
2023 Impairment Charges |  |  |  |  |  |  |  |  |  |  |  |
146 Geary Street, San Francisco, CA |  | Fund IV |  | Reduced holding period (Note 7) |  | Sept 30, 2023 |  | $ | 3,686 |  |  | $ | 852 |
2022 Impairment Charges |  |  |  |  |  |  |  |  |  |  |  |
146 Geary Street, San Francisco, CA |  | Fund IV |  | Reduced projected operating income |  | Sept 30, 2022 |  | $ | 12,435 |  |  | $ | 2,875 |
717 N. Michigan Avenue, Chicago, IL |  | Fund IV |  | Reduced holding period and intended use |  | Sept 30, 2022 |  |  | 20,876 |  |  |  | 4,827 |
Total 2022 Impairment Charges |  |  |  |  |  |  |  | $ | 33,311 |  |  | $ | 7,702 |
(a) The fair value of 717 N. Michigan Avenue was based on an observable contract to sell the asset, less estimated costs to sell. The Company estimated the fair value of 146 Geary Street based on a discounted cash flow analysis using a range of discount rates from 5.00% to 7.75% and a range of capitalization rates from 4.25% to 5.75%. As significant inputs to the models are unobservable, the Company determined that the value determined for these properties falls within Level 3 of the fair value reporting hierarchy.
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 |  | September 30, 2023 |  |  | December 31, 2022 |
Core |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swaps |  | $ | — |  |  |  |  |  |  |  |  |  |  |  | Other Liabilities |  | $ | — |  |  | $ | (46 | )
Interest Rate Swaps |  |  | 856,000 |  |  | May 2022 - May 2023 |  | Mar 2025 - Jul 2030 |  | 1.98% |  | — |  | 3.61% |  | Other Assets |  |  | 60,367 |  |  |  | 40,884 |
|  | $ | 856,000 |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 60,367 |  |  | $ | 40,838 |
Fund II |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swap |  | $ | 50,000 |  |  | Jan 2023 |  | Dec 2029 |  | 3.23% |  | — |  | 3.23% |  | Other Assets |  | $ | 2,678 |  |  | $ | 1,108 |
Fund III |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Cap |  | $ | 33,000 |  |  | Sep 2023 |  | Oct 2025 |  | 5.50% |  | — |  | 5.50% |  | Other Assets |  | $ | 149 |  |  | $ | 232 |
Fund IV |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Cap |  | $ | 57,000 |  |  | Dec 2022 |  | Dec 2023 |  | 3.00% |  | — |  | 3.00% |  | Other Assets |  | $ | 255 |  |  | $ | 1,093 |
Fund V |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swaps |  | $ | 344,890 |  |  | Apr 2022 - Jul 2023 |  | Mar 2024- Dec 2027 |  | 1.14% |  | — |  | 4.54% |  | Other Assets |  | $ | 10,555 |  |  | $ | 11,585 |
Interest Rate Caps |  |  | 72,588 |  |  | Jan 2023 - Aug 2023 |  | Jan 2024 - Sep 2025 |  | 3.64% |  | — |  | 5.00% |  | Other Assets |  |  | 475 |  |  |  | — |
|  | $ | 417,478 |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 11,030 |  |  | $ | 11,585 |
Total asset derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 74,479 |  |  | $ | 54,902 |
Total liability derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | — |  |  | $ | (46 | )
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):
|  |  |  |  | September 30, 2023 |  |  | December 31, 2022 |
|  | Level |  |  | Carrying Amount |  |  | Estimated Fair Value |  |  | Carrying Amount |  |  | Estimated Fair Value |
Notes Receivable (a) |  |  | 3 |  |  | $ | 123,813 |  |  | $ | 121,976 |  |  | $ | 123,903 |  |  | $ | 122,716 |
City Point Loan (a) |  |  | 3 |  |  |  | 66,741 |  |  |  | 65,209 |  |  |  | 65,945 |  |  |  | 65,856 |
Mortgage and Other Notes Payable (a) |  |  | 3 |  |  |  | 969,716 |  |  |  | 949,550 |  |  |  | 935,917 |  |  |  | 906,348 |
Investment in non-traded equity securities (b) |  |  | 3 |  |  |  | 4,242 |  |  |  | 4,784 |  |  |  | 4,160 |  |  |  | 5,593 |
Unsecured notes payable and Unsecured line of credit (c) |  |  | 2 |  |  |  | 862,553 |  |  |  | 860,069 |  |  |  | 869,497 |  |  |  | 868,399 |
(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 changes in interest rates. 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. The estimated market rates are between 6.06% to 14.74% for the Company's notes receivable and City Point Loan, and 6.07% to 10.72% for the Company's mortgage and other notes payable, depending on the attributes of the specific loans. (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.

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- 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 -Name Accounting Standards Codification -Section 50 -Paragraph 2C -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2C Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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- 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 -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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