Acadia Realty Trust Announces 10% Increase in Quarterly Dividend; Maintains Conservative Payout Ratio and Strong Balance Sheet.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 9, 2003

Acadia Realty Trust (NYSE: AKR) today announced that its Board of Trustees has approved an increase in Acadia's quarterly dividend to $0.16 per common share. This represents a 10% increase over the $0.145 quarterly dividend paid by Acadia during the first three quarters of 2003. The fourth quarter 2003 dividend is payable January 15, 2004 to shareholders of record as of December 31, 2003.

On an annualized basis, the dividend will increase $0.06 resulting in an annual dividend of $0.64. This dividend increase follows 11.5% and 8% increases at the beginning of 2003 and 2002, respectively.

Kenneth F. Bernstein, Acadia's President and CEO, stated, "With this most recent increase, we have now increased our dividend 33% on a cumulative basis since the end of 2001. Importantly, even after these increases, Acadia's dividend payout ratio remains among the most conservative in our sector. Our continued dividend growth reflects our ongoing success in executing Acadia's business plan. Along with our solid balance sheet, we have created a strong core portfolio with embedded opportunity for future internal growth. Additionally, we have created an acquisition program that, while disciplined and opportunistic, has also proven to be highly accretive."

Acadia Realty Trust, headquartered in White Plains, NY, is a fully integrated and self-managed real estate investment trust which specializes in the acquisition, redevelopment and operation of shopping centers which are anchored by grocery and value-oriented retail. Acadia currently owns, or has interests in, and operates 62 properties totaling approximately nine million square feet, located primarily in the Northeast, Mid-Atlantic and Midwest United States.

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 which 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. Such forward-looking statements speak only as of the date of this document. 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 Acadia's expectations with regard thereto or change in events, conditions or circumstances on which any such statement is based. The Company also refers you to the documents filed by the Company, from time to time, with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" incorporated by reference therein, for a discussion of such risks and uncertainties.

For more information on Acadia Realty Trust, visit the Company's Web site at www.acadiarealty.com