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Segment Reporting
 9 Months Ended
Sep. 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 September 30, 2023

 

 

 

Core
Portfolio

 

 

Funds

 

 

Structured
Financing

 

 

Unallocated

 

 

Total

 

Revenues

 

$

47,334

 

 

$

34,058

 

 

$

—

 

 

$

—

 

 

$

81,392

 

Depreciation and amortization

 

 

(18,847

)

 

 

(14,879

)

 

 

—

 

 

 

—

 

 

 

(33,726

)

Property operating expenses and real estate taxes

 

 

(15,553

)

 

 

(11,427

)

 

 

—

 

 

 

—

 

 

 

(26,980

)

General and administrative expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(10,309

)

 

 

(10,309

)

Impairment charges

 

 

—

 

 

 

(3,686

)

 

 

—

 

 

 

—

 

 

 

(3,686

)

Gain on disposition of properties

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Operating income

 

 

12,934

 

 

 

4,066

 

 

 

—

 

 

 

(10,309

)

 

 

6,691

 

Interest and other income

 

 

—

 

 

 

—

 

 

 

5,087

 

 

 

—

 

 

 

5,087

 

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

 

 

1,729

 

 

 

—

 

 

 

(65

)

 

 

—

 

 

 

1,664

 

Equity in losses of unconsolidated affiliates

 

 

(825

)

 

 

(4,040

)

 

 

—

 

 

 

—

 

 

 

(4,865

)

Interest expense

 

 

(11,388

)

 

 

(13,497

)

 

 

—

 

 

 

—

 

 

 

(24,885

)

Income tax benefit

 

 

—

 

 

 

—

 

 

 

—

 

 

 

40

 

 

 

40

 

Net income (loss)

 

 

2,450

 

 

 

(13,471

)

 

 

5,022

 

 

 

(10,269

)

 

 

(16,268

)

Net loss attributable to redeemable noncontrolling interests

 

 

—

 

 

 

2,495

 

 

 

—

 

 

 

—

 

 

 

2,495

 

Net (income) loss attributable to noncontrolling interests

 

 

(176

)

 

 

12,523

 

 

 

—

 

 

 

—

 

 

 

12,347

 

Net income attributable to Acadia

 

$

2,274

 

 

$

1,547

 

 

$

5,022

 

 

$

(10,269

)

 

$

(1,426

)

 

 

 

For the Three Months Ended September 30, 2022

 

 

 

Core
Portfolio

 

 

Funds

 

 

Structured
Financing

 

 

Unallocated

 

 

Total

 

Revenues

 

$

50,076

 

 

$

29,870

 

 

$

—

 

 

$

—

 

 

$

79,946

 

Depreciation and amortization

 

 

(18,811

)

 

 

(14,933

)

 

 

—

 

 

 

—

 

 

 

(33,744

)

Property operating expenses and real estate taxes

 

 

(14,808

)

 

 

(10,751

)

 

 

—

 

 

 

—

 

 

 

(25,559

)

General and administrative expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(10,170

)

 

 

(10,170

)

Impairment charges

 

 

—

 

 

 

(33,311

)

 

 

—

 

 

 

—

 

 

 

(33,311

)

Gain on disposition of properties

 

 

—

 

 

 

8,885

 

 

 

—

 

 

 

—

 

 

 

8,885

 

Operating income (loss)

 

 

16,457

 

 

 

(20,240

)

 

 

—

 

 

 

(10,170

)

 

 

(13,953

)

Interest and other income

 

 

—

 

 

 

—

 

 

 

3,994

 

 

 

—

 

 

 

3,994

 

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

 

 

—

 

 

 

(7,257

)

 

 

(605

)

 

 

—

 

 

 

(7,862

)

Equity in losses of unconsolidated affiliates

 

 

(49,806

)

 

 

(773

)

 

 

—

 

 

 

—

 

 

 

(50,579

)

Interest expense

 

 

(10,428

)

 

 

(10,734

)

 

 

—

 

 

 

—

 

 

 

(21,162

)

Income tax benefit

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17

 

 

 

17

 

Net income (loss)

 

 

(43,777

)

 

 

(39,004

)

 

 

3,389

 

 

 

(10,153

)

 

 

(89,545

)

Net loss attributable to redeemable noncontrolling interests

 

 

—

 

 

 

3,193

 

 

 

—

 

 

 

—

 

 

 

3,193

 

Net loss attributable to noncontrolling interests

 

 

2,884

 

 

 

27,577

 

 

 

—

 

 

 

—

 

 

 

30,461

 

Net loss attributable to Acadia

 

$

(40,893

)

 

$

(8,234

)

 

$

3,389

 

 

$

(10,153

)

 

$

(55,891

)

 

 

 

 

As of or for the Nine Months Ended September 30, 2023

 

 

 

Core
Portfolio

 

 

Funds

 

 

Structured
Financing

 

 

Unallocated

 

 

Total

 

Revenues

 

$

153,506

 

 

$

99,673

 

 

$

—

 

 

$

—

 

 

$

253,179

 

Depreciation and amortization

 

 

(57,541

)

 

 

(43,414

)

 

 

—

 

 

 

—

 

 

 

(100,955

)

Property operating expenses and real estate taxes

 

 

(46,717

)

 

 

(32,466

)

 

 

—

 

 

 

—

 

 

 

(79,183

)

General and administrative expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(30,898

)

 

 

(30,898

)

Impairment charges

 

 

—

 

 

 

(3,686

)

 

 

—

 

 

 

—

 

 

 

(3,686

)

Operating income

 

 

49,248

 

 

 

20,107

 

 

 

—

 

 

 

(30,898

)

 

 

38,457

 

Interest and other income

 

 

—

 

 

 

—

 

 

 

14,875

 

 

 

—

 

 

 

14,875

 

Realized and unrealized holding gains on investments and other

 

 

5,218

 

 

 

24,995

 

 

 

23

 

 

 

—

 

 

 

30,236

 

Equity in earnings (losses) of unconsolidated affiliates

 

 

1,897

 

 

 

(8,170

)

 

 

—

 

 

 

—

 

 

 

(6,273

)

Interest expense

 

 

(33,048

)

 

 

(35,513

)

 

 

—

 

 

 

—

 

 

 

(68,561

)

Income tax provision

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(248

)

 

 

(248

)

Net income

 

 

23,315

 

 

 

1,419

 

 

 

14,898

 

 

 

(31,146

)

 

 

8,486

 

Net loss attributable to redeemable noncontrolling interests

 

 

—

 

 

 

5,661

 

 

 

—

 

 

 

—

 

 

 

5,661

 

Net (income) loss attributable to noncontrolling interests

 

 

(1,813

)

 

 

8,876

 

 

 

—

 

 

 

—

 

 

 

7,063

 

Net income attributable to Acadia

 

$

21,502

 

 

$

15,956

 

 

$

14,898

 

 

$

(31,146

)

 

$

21,210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate at cost (a)

 

$

2,639,893

 

 

$

1,735,200

 

 

$

—

 

 

$

—

 

 

$

4,375,093

 

Total assets (a)

 

$

2,596,241

 

 

$

1,560,724

 

 

$

123,813

 

 

$

—

 

 

$

4,280,778

 

Cash paid for acquisition of real estate

 

$

—

 

 

$

48,909

 

 

$

—

 

 

$

—

 

 

$

48,909

 

Cash paid for development and property improvement costs

 

$

33,599

 

 

$

17,681

 

 

$

—

 

 

$

—

 

 

$

51,280

 

 

 

 

As of or for the Nine Months Ended September 30, 2022

 

 

 

Core
Portfolio

 

 

Funds

 

 

Structured
Financing

 

 

Unallocated

 

 

Total

 

Revenues

 

$

151,650

 

 

$

94,062

 

 

$

—

 

 

$

—

 

 

$

245,712

 

Depreciation and amortization

 

 

(56,547

)

 

 

(45,881

)

 

 

—

 

 

 

—

 

 

 

(102,428

)

Property operating expenses and real estate taxes

 

 

(44,379

)

 

 

(31,005

)

 

 

—

 

 

 

—

 

 

 

(75,384

)

General and administrative expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(32,768

)

 

 

(32,768

)

Impairment charges

 

 

—

 

 

 

(33,311

)

 

 

—

 

 

 

—

 

 

 

(33,311

)

Gain on disposition of properties

 

 

—

 

 

 

49,916

 

 

 

—

 

 

 

—

 

 

 

49,916

 

Operating income

 

 

50,724

 

 

 

33,781

 

 

 

—

 

 

 

(32,768

)

 

 

51,737

 

Interest and other income

 

 

—

 

 

 

—

 

 

 

9,890

 

 

 

—

 

 

 

9,890

 

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

 

 

1,163

 

 

 

(19,073

)

 

 

(505

)

 

 

—

 

 

 

(18,415

)

Equity in (losses) earnings of unconsolidated affiliates

 

 

(47,402

)

 

 

1,233

 

 

 

—

 

 

 

—

 

 

 

(46,169

)

Interest expense

 

 

(26,543

)

 

 

(31,766

)

 

 

—

 

 

 

—

 

 

 

(58,309

)

Income tax provision

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7

)

 

 

(7

)

Net income

 

 

(22,058

)

 

 

(15,825

)

 

 

9,385

 

 

 

(32,775

)

 

 

(61,273

)

Net loss attributable to redeemable noncontrolling interests

 

 

—

 

 

 

3,193

 

 

 

—

 

 

 

—

 

 

 

3,193

 

Net loss attributable to noncontrolling interests

 

 

1,398

 

 

 

17,255

 

 

 

—

 

 

 

—

 

 

 

18,653

 

Net (loss) income attributable to Acadia

 

$

(20,660

)

 

$

4,623

 

 

$

9,385

 

 

$

(32,775

)

 

$

(39,427

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate at cost (a)

 

$

2,614,103

 

 

$

1,651,319

 

 

$

—

 

 

$

—

 

 

$

4,265,422

 

Total assets (a)

 

$

2,636,041

 

 

$

1,603,491

 

 

$

123,966

 

 

$

—

 

 

$

4,363,498

 

Cash paid for acquisition of real estate

 

$

242,633

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

242,633

 

Cash paid for development and property improvement costs

 

$

22,325

 

 

$

14,538

 

 

$

—

 

 

$

—

 

 

$

36,863

 

 

 

(a)
Real estate at cost and total assets for the Funds segment include $670.1 million and $661.7 million, or $423.8 million and $418.5 million net of noncontrolling interests, related to Fund II’s City Point property at September 30, 2023 and 2022, respectively.