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Segment Reporting
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting

12. Segment Reporting

The Company has three reportable segments: Core Portfolio, Investment Management, and Structured Financing. The Company’s Core Portfolio segment 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 Investment Management segment holds 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 Investment Management (Note 3). Fees earned by the Company as the general partner or managing member through Investment Management are eliminated in the Company’s condensed consolidated financial statements and are not presented in the Company’s segments.

During the second quarter of 2024, the Company renamed its historical Funds segment as the Investment Management segment. No prior period information was recast and the designation change did not impact the Company’s condensed consolidated financial statements. Refer to Note 1.

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

 

 

 

For the Three Months Ended September 30, 2024

 

 

 

Core
Portfolio

 

 

Investment
Management

 

 

Structured
Financing

 

 

Unallocated

 

 

Total

 

Total Revenues

 

$

45,575

 

 

$

42,170

 

 

$

—

 

 

$

—

 

 

$

87,745

 

Depreciation and amortization expenses

 

 

(17,788

)

 

 

(16,712

)

 

 

—

 

 

 

—

 

 

 

(34,500

)

General and administrative expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(10,215

)

 

 

(10,215

)

Property operating expenses, other operating and real estate taxes

 

 

(13,160

)

 

 

(12,378

)

 

 

—

 

 

 

—

 

 

 

(25,538

)

Operating income

 

 

14,627

 

 

 

13,080

 

 

 

—

 

 

 

(10,215

)

 

 

17,492

 

Equity in earnings of unconsolidated affiliates

 

 

781

 

 

 

11,003

 

 

 

—

 

 

 

—

 

 

 

11,784

 

Interest income

 

 

—

 

 

 

—

 

 

 

7,859

 

 

 

—

 

 

 

7,859

 

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

 

 

(1,110

)

 

 

—

 

 

 

(393

)

 

 

—

 

 

 

(1,503

)

Interest expense

 

 

(9,536

)

 

 

(13,827

)

 

 

—

 

 

 

—

 

 

 

(23,363

)

Income (loss) from continuing operations before income taxes

 

 

4,762

 

 

 

10,256

 

 

 

7,466

 

 

 

(10,215

)

 

 

12,269

 

Income tax provision

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(15

)

 

 

(15

)

Net income

 

 

4,762

 

 

 

10,256

 

 

 

7,466

 

 

 

(10,230

)

 

 

12,254

 

Net loss attributable to redeemable noncontrolling interests

 

 

—

 

 

 

1,672

 

 

 

—

 

 

 

—

 

 

 

1,672

 

Net income attributable to noncontrolling interests

 

 

(567

)

 

 

(4,945

)

 

 

—

 

 

 

—

 

 

 

(5,512

)

Net income attributable to Acadia shareholders

 

$

4,195

 

 

$

6,983

 

 

$

7,466

 

 

$

(10,230

)

 

$

8,414

 

 

 

 

For the Three Months Ended September 30, 2023

 

 

 

Core
Portfolio

 

 

Investment
Management

 

 

Structured
Financing

 

 

Unallocated

 

 

Total

 

Total Revenues

 

$

47,334

 

 

$

34,058

 

 

$

—

 

 

$

—

 

 

$

81,392

 

Depreciation and amortization expenses

 

 

(18,847

)

 

 

(14,879

)

 

 

—

 

 

 

—

 

 

 

(33,726

)

General and administrative expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(10,309

)

 

 

(10,309

)

Property operating expenses, other operating and real estate taxes

 

 

(15,553

)

 

 

(11,427

)

 

 

—

 

 

 

—

 

 

 

(26,980

)

Impairment charges

 

 

—

 

 

 

(3,686

)

 

 

—

 

 

 

—

 

 

 

(3,686

)

Operating income

 

 

12,934

 

 

 

4,066

 

 

 

—

 

 

 

(10,309

)

 

 

6,691

 

Equity in losses of unconsolidated affiliates

 

 

(825

)

 

 

(4,040

)

 

 

—

 

 

 

—

 

 

 

(4,865

)

Interest income

 

 

—

 

 

 

—

 

 

 

5,087

 

 

 

—

 

 

 

5,087

 

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

 

 

1,729

 

 

 

—

 

 

 

(65

)

 

 

—

 

 

 

1,664

 

Interest expense

 

 

(11,388

)

 

 

(13,497

)

 

 

—

 

 

 

—

 

 

 

(24,885

)

Income (loss) from continuing operations before income taxes

 

 

2,450

 

 

 

(13,471

)

 

 

5,022

 

 

 

(10,309

)

 

 

(16,308

)

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 (loss) attributable to Acadia shareholders

 

$

2,274

 

 

$

1,547

 

 

$

5,022

 

 

$

(10,269

)

 

$

(1,426

)

 

 

 

 

As of or for the Nine Months Ended September 30, 2024

 

 

 

Core
Portfolio

 

 

Investment
Management

 

 

Structured
Financing

 

 

Unallocated

 

 

Total

 

Total Revenues

 

$

148,008

 

 

$

118,347

 

 

$

—

 

 

$

—

 

 

$

266,355

 

Depreciation and amortization expenses

 

 

(54,020

)

 

 

(49,701

)

 

 

—

 

 

 

—

 

 

 

(103,721

)

General and administrative expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(30,162

)

 

 

(30,162

)

Property operating expenses, other operating and real estate taxes

 

 

(45,458

)

 

 

(37,284

)

 

 

—

 

 

 

—

 

 

 

(82,742

)

(Loss) gain on disposition of properties

 

 

(2,213

)

 

 

1,772

 

 

 

—

 

 

 

—

 

 

 

(441

)

Operating income

 

 

46,317

 

 

 

33,134

 

 

 

—

 

 

 

(30,162

)

 

 

49,289

 

Equity in earnings of unconsolidated affiliates

 

 

3,528

 

 

 

12,424

 

 

 

—

 

 

 

—

 

 

 

15,952

 

Interest income

 

 

—

 

 

 

—

 

 

 

18,510

 

 

 

—

 

 

 

18,510

 

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

 

 

(5,128

)

 

 

—

 

 

 

(790

)

 

 

—

 

 

 

(5,918

)

Interest expense

 

 

(29,513

)

 

 

(41,140

)

 

 

—

 

 

 

—

 

 

 

(70,653

)

Income (loss) from continuing operations before income taxes

 

 

15,204

 

 

 

4,418

 

 

 

17,720

 

 

 

(30,162

)

 

 

7,180

 

Income tax provision

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(201

)

 

 

(201

)

Net income

 

 

15,204

 

 

 

4,418

 

 

 

17,720

 

 

 

(30,363

)

 

 

6,979

 

Net loss attributable to redeemable noncontrolling interests

 

 

—

 

 

 

6,518

 

 

 

—

 

 

 

—

 

 

 

6,518

 

Net (income) loss attributable to noncontrolling interests

 

 

(1,130

)

 

 

759

 

 

 

—

 

 

 

—

 

 

 

(371

)

Net income attributable to Acadia shareholders

 

$

14,074

 

 

$

11,695

 

 

$

17,720

 

 

$

(30,363

)

 

$

13,126

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate at cost (a)

 

$

2,648,558

 

 

$

1,810,863

 

 

$

—

 

 

$

—

 

 

$

4,459,421

 

Total assets (a)

 

$

2,547,118

 

 

$

1,602,629

 

 

$

126,576

 

 

$

—

 

 

$

4,276,323

 

Cash paid for acquisition of real estate

 

$

19,300

 

 

$

29,555

 

 

$

—

 

 

$

—

 

 

$

48,855

 

Cash paid for development and property improvement costs

 

$

36,217

 

 

$

26,182

 

 

$

—

 

 

$

—

 

 

$

62,399

 

 

 

 

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

 

 

 

Core
Portfolio

 

 

Investment
Management

 

 

Structured
Financing

 

 

Unallocated

 

 

Total

 

Total Revenues

 

$

153,506

 

 

$

99,673

 

 

$

—

 

 

$

—

 

 

$

253,179

 

Depreciation and amortization expenses

 

 

(57,541

)

 

 

(43,414

)

 

 

—

 

 

 

—

 

 

 

(100,955

)

General and administrative expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(30,898

)

 

 

(30,898

)

Property operating expenses, other operating and real estate taxes

 

 

(46,717

)

 

 

(32,466

)

 

 

—

 

 

 

—

 

 

 

(79,183

)

Impairment charges

 

 

—

 

 

 

(3,686

)

 

 

—

 

 

 

—

 

 

 

(3,686

)

Operating income

 

 

49,248

 

 

 

20,107

 

 

 

—

 

 

 

(30,898

)

 

 

38,457

 

Equity in earnings (losses) of unconsolidated affiliates

 

 

1,897

 

 

 

(8,170

)

 

 

—

 

 

 

—

 

 

 

(6,273

)

Interest income

 

 

—

 

 

 

—

 

 

 

14,875

 

 

 

—

 

 

 

14,875

 

Realized and unrealized holding gains on investments and other

 

 

5,218

 

 

 

24,995

 

 

 

23

 

 

 

—

 

 

 

30,236

 

Interest expense

 

 

(33,048

)

 

 

(35,513

)

 

 

—

 

 

 

—

 

 

 

(68,561

)

Income (loss) from continuing operations before income taxes

 

 

23,315

 

 

 

1,419

 

 

 

14,898

 

 

 

(30,898

)

 

 

8,734

 

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 shareholders

 

$

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

 

 

 

 

(a)
Total assets for the Investment Management segment include $545.3 million and $563.2 million related to Fund II’s City Point property as of September 30, 2024 and 2023, respectively.