Analyst Ki Bin Kim of Truist Financial maintained a Buy rating on Acadia Realty (AKR – Research Report), retaining the price target of $23.00.
Ki Bin Kim has given his Buy rating due to a combination of factors that highlight Acadia Realty’s strong performance and strategic acquisitions. The company has been active in acquiring properties, with significant acquisitions totaling $373 million, which have bolstered its portfolio across various Street Retail corridors. This strategic expansion has contributed to an increase in the SNO pipeline, which now represents a notable 6% of in-place rent, the highest among Strip REITs.
Additionally, Acadia Realty has increased its guidance slightly, driven by these acquisitions, and reported a solid SSNOI growth of 4.1% year-over-year, with expectations of further growth in 2025. Despite a temporary decline in occupancy due to a known move-out, the space has been backfilled, and rent commencement is anticipated in the third quarter of 2025. Furthermore, the company achieved a significant improvement in its financial leverage, with Net Debt to Adjusted EBITDA falling below 6.0x for the first time in many years, indicating a stronger financial position.
Bin Kim covers the Real Estate sector, focusing on stocks such as Public Storage, Eastgroup Properties, and Acadia Realty. According to TipRanks, Bin Kim has an average return of 8.3% and a 59.38% success rate on recommended stocks.