Acadia Realty (AKR) AI Stock Analysis

• Market Cap: $2.54B
• Dividend Yield: 4.18%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 115.5
• Beta (1Y): 0.93
• Revenue Growth: 2.62%
• EPS Growth: 84.20%
• Country: US
• Employees: 129
• Sector: Real Estate
• Sector Strength: 72
• Industry: REIT - Retail
• EPS (TTM): <0.01
• Shares Outstanding: 130,960,920
• 10 Day Avg. Volume: 1,779,117
• 30 Day Avg. Volume: 1,191,816
• PEG Ratio: 0.06
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.30
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 2.17
• Enterprise Value/Gross Profit: 14.00
• Enterprise Value/Ebitda: 3.63
• 1Y Price Target: $24.40
• Price Target Upside: 28.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 65 Neutral
• Price Target: $20.50 ▲(8.18%Upside)

Acadia Realty's overall score is driven by strong financial performance and positive sentiment from the earnings call. However, technical analysis indicates bearish signals, and the high P/E ratio suggests overvaluation concerns. The company benefits from strong internal and external growth but faces challenges from economic uncertainties.

Positive Factors

Financial Performance

AKR's growth is considered best-in-class, with internal and external growth positioning the company to grow earnings ahead of peers.

Leasing Activity

Improved leasing at key retail corridors like Rush and Walton (93% vs 78.4% prior) and M Street (95.3% vs 88.5% prior).

Market Position

AKR trades at a discount compared to its 10-year average, and the expectation is that this gap will narrow as investors seek better, differentiated growth.

Negative Factors

Interest Expense

A slight increase in interest expense is anticipated.

Lease Term Fees

The previous model overestimated the lease term fees, which has now been adjusted to a lower figure.

Promote Assumption

There is a reduction in the net promote assumption for 2026, down from $17.5m in 2025 to $6m, due to no expected monetization from Albertsons Company.

Acadia Realty Business Overview & Revenue Model

Company Description

Acadia Realty Trust (AKR) is a real estate investment trust (REIT) specializing in the acquisition, redevelopment, and management of retail properties located primarily along the East Coast of the United States. The company focuses on high-barrier-to-entry, densely populated metropolitan areas, aiming to add value through strategic redevelopment and leasing initiatives. Acadia Realty's portfolio includes urban and street-retail properties, as well as suburban shopping centers, catering to a diverse tenant base ranging from national retail chains to local businesses.

How the Company Makes Money

Acadia Realty Trust generates revenue primarily through rental income from its portfolio of retail properties. The company leases space to tenants under long-term contracts, providing a stable and predictable cash flow. Revenue is also enhanced through strategic property redevelopments, which can increase rental rates and property values. Additionally, Acadia Realty may earn income from property sales and joint ventures, where it collaborates with partners to capitalize on development opportunities or share in the investment and operational risks. The REIT structure allows Acadia to benefit from favorable tax treatment, as it is required to distribute a significant portion of its taxable income to shareholders in the form of dividends, which are a key factor in attracting and retaining investors.

Acadia Realty Financial Statement Overview

Summary

Acadia Realty demonstrates strong financial health with consistent revenue growth, high gross profit margins, and improved balance sheet leverage. However, concerns arise from the decline in EBITDA margins and negative free cash flow growth.

Income Statement

Acadia Realty's income statement shows a consistent revenue growth with a 6.2% increase in 2024 compared to 2023. Gross profit margin and net profit margin for 2024 are healthy at 68.8% and 6.0%, respectively, indicating strong operational efficiency. The EBIT margin improved to 18.3% in 2024 from 13.6% in 2023. However, the EBITDA margin declined significantly from 57.4% in 2023 to 18.8% in 2024, suggesting potential concerns in managing operating expenses.

Balance Sheet

The balance sheet of Acadia Realty is strong, with no total debt reported in 2024, a significant improvement from previous years. The equity ratio is robust, with 47.3% of total assets funded by stockholders' equity. Return on equity improved to 1.0% in 2024 from 1.2% in 2023, reflecting better profitability. This strong equity position and low leverage mitigate financial risk.

Cash Flow

The cash flow statement shows a slight decline in operating cash flow in 2024 compared to 2023. Free cash flow growth is negative due to lower operating cash flow, yet the free cash flow to net income ratio remains strong. The operating cash flow to net income ratio indicates efficient cash management despite reduced free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	372.73M	359.69M	338.69M	326.29M	292.50M	255.48M
Gross Profit	226.26M	247.64M	230.22M	224.36M	193.62M	155.38M
EBITDA	225.75M	207.08M	194.39M	162.03M	167.89M	115.86M
Net Income	19.36M	21.65M	19.87M	-65.25M	23.55M	-66.04M
Balance Sheet
Total Assets	4.74B	4.37B	4.29B	4.30B	4.26B	4.19B
Cash, Cash Equivalents and Short-Term Investments	48.52M	31.58M	50.77M	17.16M	17.75M	19.23M
Total Debt	0.00	1.67B	1.93B	1.83B	1.85B	1.76B
Total Liabilities	1.95B	1.84B	2.16B	2.05B	2.11B	2.14B
Stockholders Equity	2.30B	2.07B	1.64B	1.69B	1.52B	1.44B
Cash Flow
Free Cash Flow	154.26M	140.45M	155.76M	74.17M	59.40M	96.16M
Operating Cash Flow	140.35M	140.45M	155.76M	133.21M	104.98M	102.56M
Investing Cash Flow	-362.86M	-170.66M	-208.54M	-124.17M	-198.54M	-96.21M
Financing Cash Flow	245.74M	44.62M	45.85M	-4.38M	91.32M	-1.26M

Acadia Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AKR, the sentiment is Negative. The current price of 18.95 is below the 20-day moving average (MA) of 19.34, below the 50-day MA of 19.48, and below the 200-day MA of 22.07, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 41.19 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AKR.

Acadia Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCPT	77 Outperform	$2.77B	26.06	7.62%	5.10%	6.20%	0.28%
CURB	75 Outperform	$2.45B	191.54		2.75%	―	―
IVT	74 Outperform	$2.16B	122.90	1.07%	3.38%	7.45%	119.81%
GTY	71 Outperform	$1.60B	24.22	7.23%	6.42%	7.80%	4.15%
WSR	70 Outperform	$1.28B	20.80	7.33%	4.29%	4.39%	24.45%
AKR	65 Neutral	$2.54B	115.46	0.92%	4.18%	2.62%	84.20%
Sector *	63 Neutral	$6.99B	19.27	-1.11%	7.12%	4.74%	-22.06%

Acadia Realty Corporate Events

Acadia Realty Holds Annual Shareholder Meeting on May 8

On May 8, 2025, Acadia Realty held its annual meeting of shareholders, with a significant participation rate of 94.58% of common shares. During the meeting, several proposals were voted on, including the election of trustees and the ratification of Deloitte & Touche, LLP as the independent accounting firm for the fiscal year ending December 31, 2025. The meeting’s outcomes are expected to influence the company’s governance and financial oversight.