Nov 2, 2026 earnings call — Street retail growth and acquisitions drive results
Acadia raised full-year same property NOI guidance to 7.5% to 8.5% after Q3 same property NOI grew 10.2%.
Revenue $0.1B (est $0.1B) · EPS $-0.03 (est $0.07)
Key quotes
"Over the last 3 years, market rent growth in our street retail portfolio has averaged north of 12% annually,."
"Including adding NAV accretive assets that achieve our FFO target of being 1p accretive for $200 million of acquisitions."
"At its full run rate, our current S&O pipeline represents approximately $0.11 of incremental FFO which is net of about $0.04 that we are currently capitalizing within our development and redevelopment projects."
Analyst Q&A 6
Offsets and timing for S&O FFO
Q (Craig Mailman · Citi): He asked if any known move-outs or other offsets should reduce the $0.06–$0.08 of FFO from the S&O pipeline. He also asked timing on the additional $15 million pipeline and whether that impacts 2027 or 2028.
A: Management said there are no known move-outs and headwinds are only items already discussed. They said dispositions are a timing issue and will cause a slight timing lag as assets are sold and redeployed. They said the pipeline could move quickly in some cases and will set them up for 2027 with a bigger impact into 2020.
"So headwinds, nothing that we have not have not already discussed." — John Gottfried
North Michigan update and FFO bridge
Q (Samir Khanal · BofA): He asked for an update on North Michigan: whether it is a drag, remaining investment needed, and potential earnings contribution. He also asked why FFO guide stayed the same despite a raised NOI outlook and whether that offset could reverse next year.
A: Management said they are not capitalizing costs on North Michigan and there is a small penny drag in earnings from taxes and carry. AJ said leasing activity is increasing with large retailers taking space and they feel good about North Michigan as a growth lever into 2027-2028. John said the main offset to higher NOI is that they are net sellers in investment management, which causes a short-term delay in fees and NOI until that capital is redeployed.
"I think we are feeling really good about North Michigan Avenue as another lever of growth for us as we move into 2027-2028." — Alexander Levine
Occupancy upside and Henderson timing
Q (Floris van Dijkum · Ladenburg Thalmann): What is the upside if street economic occupancy rises to 96–97% and how that compares to the prior peak. Also, how should we think about the roughly $200 million Henderson Avenue cost and its timing into next year.
A: Management said peak occupancy was about 97% and current occupancy measures do not yet include North Michigan, so that adds incremental upside. They would not give an exact dollar for full lease-up but pointed to strategic holdback on Henderson and near-term leasing opportunities in SoHo and Westport. On the roughly $200 million at Henderson, they said they have forward equity contracts, will draw equity as those expire, will time much of the spend with the project, target about a 9% yield, and will rebalance debt to EBITDA and use equity.
"So I think we were in the 97% range at peak." — John Gottfried
S&O contribution and Sunset Park loan details
Q (Todd Thomas · KeyBanc): He asked whether the $0.01 in Q4 and $0.06–$0.08 in 2027 refer only to S&O leasing and exclude contractual rent growth, financing, and external growth. He also asked for underwriting details on the Sunset Park loan amendment, downside protection, and whether they will hedge rate exposure.
A: Management said the 11¢ they described was shown in isolation and does not include the other items the analyst listed. On Sunset Park, they said they moved from a mezzanine position to consolidating the entire debt capital stack after receiving a $20 million payment that reduced their basis, see lease-up opportunities, and expect stabilization to reach high single-digit returns. They said the loan is floating rate and they plan to fund it with floating-rate liabilities for a natural hedge while managing floating exposure at the portfolio level.
"We consolidated our position, so we are now the entire debt capital stack." — John Gottfried
Where deals come from and rent spread upside
Q (JPMorgan): He asked where they are sourcing additional deals and how they take advantage of market dislocation like buying vacant 129 5th Ave. He also asked how to think about the remaining mark-to-market upside given cash rent spreads and expirations over the next 12–18 months.
A: Management said institutional capital is moving into open-air retail but they target assets with outsized growth and that can hit unlevered 9% or better. They said most deal flow comes from leaning into corridors they already own, where they are the first call and can pre-lease and curate space. On spreads, they said the 25% cash-rent gap was as of last quarter and should grow as market rents rise and as those spaces return in 2027 and 2028, with quarter-to-quarter variation depending on which leases come back.
"As market rents continue to rise, 25% should continue to grow as we get those spaces back in 2027 and 2028." — John Gottfried
Demand in larger urban markets
Q (JPMorgan): Which larger-format urban markets are seeing demand flow in, and does that include assets like the Sullivan Center and State Street in Chicago?
A: Management said they are seeing demand in North Michigan Avenue, San Francisco, and broadly across virtually every major market, including State Street in Chicago. AJ said San Francisco has shown momentum with T&T, Club Studio, Sprouts and that they focused first on larger boxes then on smaller high-rent spaces within centers. They said there is real momentum and activity moving north toward 840 on Michigan Avenue.
"So I cannot think of an area that has not in the last 90 days had significant increases, including State Street, as you mentioned, virtually every market that we think about." — Kenneth F. Bernstein (CEO)