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Acadia Realty Trust Provides Update on Core Portfolio Acquisition/Asset Recycling Activities

^{Published on 2011-05-31 13:05:56 - Market Wire}
 

WHITE PLAINS, N.Y.--([ BUSINESS WIRE ])--Acadia Realty Trust (NYSE: AKR) today announced that it has disposed of a $37.0 million non-strategic enclosed mall within its core portfolio and reinvested a portion of its sale proceeds in the acquisition of a $28.4 million urban/street-retail asset.

"Managementa™s Discussion and Analysis of Financial Condition and Results of Operations"

Disposition

During May 2011, the Company sold the Ledgewood Mall, a 517,000 square foot, unencumbered enclosed mall located in Ledgewood, New Jersey, for $37.0 million. At disposition, this wholly-owned property a" the Companya™s last remaining enclosed asset from the Mark Centers Trust transaction a" was 79% leased and held for redevelopment within the core portfolio.

Acquisitions

As part of its core portfolio aasset recyclinga strategy, the Company subsequently acquired a 44,000 square foot urban/street-retail asset for $28.4 million. The newly-redeveloped property is located at 651-671 West Diversey Parkway in Chicagoa™s affluent and densely-populated Lincoln Park/Lakeview neighborhood and is 100% leased to tenants including Trader Joea™s, Urban Outfitters and Express. This acquisition expands the Companya™s presence in the citya™s highly-trafficked Clark-Diversey-Broadway retail corridor. Noted for its high population density, the surrounding area has four times as many people per square mile as the Chicago average.

West Diversey is the Companya™s second acquisition this year in Chicagoa™s Central/North Side market. In April, the Company, through its Fund III, acquired The Heritage Shops at Millennium Park, a 105,000 square foot, LA Fitness and Ann Taylor Loft-anchored property located in Chicagoa™s East Loop.

Additionally, the Company has entered into a contract to acquire a second replacement property for the Ledgewood Mall, which would fully-complete the tax-deferred exchange initiated by its sale. While the purchase and sale transactions should be earnings neutral in 2012 and accretive thereafter, due to the timing of the transactions, there will be minor earnings dilution during 2011.

aDuring the second quarter, we executed on an opportunity to dispose of a non-strategic enclosed mall and redeploy those sale proceeds into a higher-quality urban/street-retail asset, which will further enhance the stability, value and long-term growth potential of our core portfolio,a stated Kenneth F. Bernstein, President and Chief Executive Officer of Acadia Realty Trust. aWe are excited to increase our presence in Lincoln Park with the acquisition of this Trader Joea™s-anchored asset, which complements our existing portfolio of urban/street-retail properties located in other densely-populated/high-barrier-to-entry markets ranging from Fordham Road in the Bronx and Fulton Street in Brooklyn to Lincoln Road in Miami Beach and Greenwich Avenue in Greenwich, Connecticut.a

About Acadia Realty Trust

Acadia Realty Trust, a fully-integrated equity real estate investment trust, is focused on the ownership, management and redevelopment of high-quality retail properties and urban/infill mixed-use properties with a strong retail component located primarily in high-barrier-to-entry, densely-populated metropolitan areas along the East Coast and in the Midwestern United States. Acadia owns, or has an ownership interest in, 83 properties through its core portfolio and three opportunistic/value-add investment funds. Additional information may be found on the Companya™s website at [ www.acadiarealty.com ].

Safe Harbor Statement

Certain matters in this press release may constitute forward-looking statements within the meaning of federal securities law and as such may involve known and unknown risk, uncertainties and other factors that may cause the actual results, performances or achievements of Acadia to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. These forward-looking statements include statements regarding Acadiaa™s future financial results and its ability to capitalize on potential opportunities arising from continued economic uncertainty. Factors that could cause the Companya™s forward-looking statements to differ from its future results include, but are not limited to, those discussed under the headings aRisk Factorsa and aManagementa™s Discussion and Analysis of Financial Condition and Results of Operationsa in the Companya™s most recent annual report on Form 10-K filed with the SEC on February 28, 2011 (aForm 10-Ka) and other periodic reports filed with the SEC, including risks related to: (i) the current global financial environment and its effect on retail tenants; (ii) the Companya™s reliance on revenues derived from major tenants; (iii) the Companya™s limited control over joint venture investments; (iv) the Companya™s partnership structure; (v) real estate and the geographic concentration of our properties; (vi) market interest rates; (vii) leverage; (viii) liability for environmental matters; (ix) the Companya™s growth strategy; (x) the Companya™s status as a REIT; (xi) uninsured losses and (xii) the loss of key executives. Copies of the Form 10-K and the other periodic reports Acadia files with the SEC are available on the Companya™s website at [ www.acadiarealty.com ]. Any forward-looking statements in this press release speak only as of the date hereof. Acadia expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Acadiaa™s expectations with regard thereto or change in events, conditions or circumstances on which any such statement is based.