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Financial Instruments and Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2025
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, 2025

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities

 

$

4,502

 

 

$

—

 

 

$

—

 

 

$

14,771

 

 

$

—

 

 

$

—

 

Derivative financial instruments

 

 

—

 

 

 

10,664

 

 

 

—

 

 

 

—

 

 

 

31,145

 

 

 

—

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

 

—

 

 

 

(3,331

)

 

 

—

 

 

 

—

 

 

 

(1,598

)

 

 

—

 
Schedule realized and unrealized gain (loss) on marketable securities

The following table represents the realized and unrealized gains (losses) on marketable securities included in Realized and unrealized holding gains (losses) 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,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Realized gain on marketable securities, net

$

4,355

 

 

$

2,923

 

 

$

9,761

 

 

$

10,504

 

Less: previously recognized unrealized gains on marketable securities sold during the period

 

(4,355

)

 

 

(2,923

)

 

 

(9,761

)

 

 

(10,504

)

Unrealized (losses) gains on marketable securities still held as of the end of the period and through the disposition date on marketable securities sold during the period

 

(2,051

)

 

 

(1,242

)

 

 

(508

)

 

 

(5,277

)

Realized and unrealized (losses) gains on marketable securities, net

$

(2,051

)

 

$

(1,242

)

 

$

(508

)

 

$

(5,277

)

 
Schedule of Items Measured at Fair Value on Nonrecurring Basis

Impairment charges for the nine months ended September 30, 2025 are as follows (in thousands):

 

 

 

 

 

 

 

 

Impairment Charge

 

Property Location

 

Owner

 

Triggering Event

 

Effective Date

 

Total

 

 

Acadia's Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2025 Impairment Charges

 

 

 

 

 

 

 

 

 

 

 

 

New York, NY (a)

 

IM (Fund III)

 

Reduced holding period

 

Jun 30, 2025

 

$

7,240

 

 

$

1,777

 

New York, NY (b)

 

IM (Fund IV)

 

Reduced holding period

 

Jun 30, 2025

 

 

17,400

 

 

 

3,991

 

East Farmingdale, NY (c)

 

IM (Fund III)

 

Reduced holding period

 

Sep 30, 2025

 

 

12,570

 

 

 

3,085

 

Total 2025 Impairment Charges

 

 

 

 

 

 

 

$

37,210

 

 

$

8,853

 
(a)
As of June 30, 2025, the fair value of the Fund III property was based on the purchase and sale agreement, excluding selling costs. This property was sold in the third quarter of 2025 (Note 2).
(b)
As of June 30, 2025, the fair value of the Fund IV property was estimated using a discounted cash flow model with a discount rate of 9.25% and a capitalization rate of 8.25%, resulting in a Level 3 fair value of $28.6 million as of the June 30, 2025 measurement date.This property was sold in October 2025.
(c)
As of September 30, 2025, the fair value of the Fund III property was estimated using a discounted cash flow model with a discount rate of 10.00% and a capitalization rate of 7.00%, resulting in a Level 3 fair value of $21.3 million as of the September 30, 2025 measurement date.
Schedule of Derivative Financial Instruments

The Company had the following interest rate swaps and caps for the periods presented (information is as of September 30, 2025, unless otherwise noted, and dollars in thousands):

 

 

 

 

 

 

 

 

 

 

Strike Rate

 

 

 

Fair Value

 

Derivative
Instrument

 

Aggregate Notional Amount

 

 

Effective Date

 

Maturity Date

 

Low

 

 

High

 

Balance Sheet
Location

 

September 30,
2025

 

 

December 31,
2024

 

REIT Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Swaps

 

$

531,000

 

 

May 2022—Apr 2025

 

Apr 2026—Jul 2030

 

1.98%

—

 

3.23%

 

Other Assets

 

$

10,480

 

 

$

28,173

 

Interest Rate Swaps

 

 

377,000

 

 

Dec 2022—Aug 2025

 

Nov 2026—Apr 2030

 

3.35%

—

 

4.50%

 

Accounts payable and other liabilities

 

 

(2,353

)

 

 

(1,316

)

 

 

$

908,000

 

 

 

 

 

 

 

 

 

 

 

 

 

$

8,127

 

 

$

26,857

 

Investment Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund II

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Swap

 

$

50,000

 

 

Jan 2023

 

Dec 2029

 

3.23%

—

 

3.23%

 

Other Assets

 

$

157

 

 

$

1,615

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund III

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Cap

 

$

33,000

 

 

Sep 2023

 

Oct 2025

 

5.50%

 

—

 

5.50%

 

Other Assets

 

$

—

 

 

$

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund IV

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Cap

 

$

54,500

 

 

Dec 2023

 

Dec 2025

 

6.00%

 

—

 

6.00%

 

Other Assets

 

$

—

 

 

$

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund V

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Swaps

 

$

15,804

 

 

May 2023

 

May 2026

 

3.47%

—

 

3.47%

 

Other Assets

 

$

27

 

 

$

1,352

 

Interest Rate Swaps

 

 

243,586

 

 

Jan 2023—Aug 2025

 

Mar 2026—Feb 2028

 

3.36%

—

 

4.49%

 

Accounts payable and other liabilities

 

 

(978

)

 

 

(282

)

Interest Rate Cap

 

 

32,200

 

 

Sep 2025

 

Sep 2026

 

5.00%

—

 

5.00%

 

Other Assets

 

 

—

 

 

 

2

 

 

 

$

291,590

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(951

)

 

$

1,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total asset derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

$

10,664

 

 

$

31,145

 

Total liability derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(3,331

)

 

$

(1,598

)
Schedule of Other Financial Instruments Carrying Values and Fair values

The carrying values and fair values of Company’s other financial assets and liabilities that are not measured at fair value on its Condensed Consolidated Balance Sheets are as follows as of the dates shown (dollars in thousands, inclusive of amounts attributable to noncontrolling interests where applicable):

 

 

 

 

 

 

September 30, 2025

 

 

December 31, 2024

 

 

 

Level

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes Receivable (a)

 

 

3

 

 

$

154,765

 

 

$

157,315

 

 

$

126,584

 

 

$

127,485

 

City Point Loan (a)

 

 

3

 

 

 

34,821

 

 

 

35,368

 

 

 

66,741

 

 

 

68,204

 

Mortgage and Other Notes Payable (a, d)

 

 

3

 

 

 

983,079

 

 

 

978,302

 

 

 

958,947

 

 

 

954,276

 

Investment in non-traded equity securities (b)

 

 

3

 

 

 

3,307

 

 

 

3,307

 

 

 

4,073

 

 

 

4,073

 

Unsecured notes payable and Unsecured line of credit (c, e)

 

 

2

 

 

 

890,000

 

 

 

892,920

 

 

 

589,000

 

 

 

589,018

 

 

(a)
The Company estimates the fair value of financial instruments using a discounted cash flow model. This model incorporates assumptions such as current market rates and, where applicable, the credit quality of the borrower or tenant. In addition, the Company evaluates the value of the underlying collateral, considering factors such as collateral quality, borrower creditworthiness, time to maturity, and prevailing market conditions. These fair value estimates exclude unamortized discounts and deferred loan costs. As of the reporting date, the estimated market interest rates used in the valuation ranged from 3.30% to 12.97% for the Company’s notes receivable and City Point Loan, and from 5.13% to 7.08% for the Company’s property mortgage loans and other notes payable, depending on the specific characteristics of each loan.
(b)
Includes the Operating Partnership’s cost-method investment in Fifth Wall (Note 4).
(c)
The Company estimates the fair value of its unsecured notes payable and unsecured line of credit using quoted market prices in active or brokered markets, when available. In instances where observable market prices are not available due to limited or no trading activity, the Company estimates fair value using a discounted cash flow model. This model incorporates a rate that reflects the average yield of comparable instruments issued by market participants with similar credit risk profiles.
(d)
Carrying amounts exclude unamortized debt issuance costs and unamortized premiums totaling $5.3 million and $1.2 million as of September 30, 2025, and $5.5 million and $0.2 million as of December 31, 2024, respectively.
(e)
Carrying amounts exclude unamortized debt issuance costs of $6.9 million and $5.4 million as of September 30, 2025 and December 31, 2024, respectively.