Acadia Realty Trust Announces Fourth Quarter and Year-End 2002 Operating Results; Increases Guidance for 2003.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 25, 2003 Acadia Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Trust (NYSE NYSE See: New York Stock Exchange : AKR AKR Auroral Kilometric Radiation AKR Vehicle Cargo Ship AKR Address Key Register AKR Anime Kingdom Rebirth - "Acadia" or the "Company"), a real estate investment trust ("REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ") and owner and operator of primarily supermarket-anchored shopping centers shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into , today reported operating results for the fourth quarter and year-ended December 31, 2002. Highlights Earnings
-- Funds from operations ("FFO"), a widely accepted measure of REIT performance, was $0.87 per share on a fully diluted basis for the year-ended December 31, 2002 (excluding $0.13 of FFO from lease termination income received from a single tenant during the year) compared to $0.86 for 2001
-- Achieved year-over-year earnings growth while absorbing $0.12 of dilution from completion of non-core property disposition initiative
-- Consistent with guidance, FFO for the quarter ended December 31, 2002 was $0.20 per share
Balance Sheet -- 3.0 to 1 fixed-charge coverage fixed-charge coverage The number of times that a firm's operating income exceeds its fixed payments. Fixed-charge coverage is a measure of a firm's ability to meet contractually fixed payments, with high coverage indicating significant flexibility for making for 2002 -- 47% debt to total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. based on current share price -- Low blended cost of debt at 5.9% with 74% of portfolio debt now fixed-rate (includes pro-rata Pro-rata Used to describe a proportionate allocation. Notes: For example, a pro-rata dividend means that every shareholder gets an equal proportion for each share they own. See also: Dividend share of JV debt) Dividend -- Increased the dividend by 8% in first quarter 2002, from $0.48 to $0.52 per share annually -- Increased the dividend by 11.5% in first quarter 2003, from $0.52 to $0.58 per share annually -- Maintained conservative dividend payout ratio Dividend Payout Ratio The percentage of earnings paid to shareholders in dividends. Calculated as: for the fourth quarter 2002 of approximately 66% of FFO FFO See: Funds from operations Portfolio -- Completed multi-year non-core disposition program - sold 20 assets during 2002, including the entire southeast portfolio, for a total of $74 million -- Executed 71 new and renewal leases totaling 490,000 square feet during 2002, or over 9% of the portfolio, at spreads of 8.1% over former base rents -- Total 2002 in-place rents represent an 8.6% increase over 2001 in-place rents on a same-property basis -- Completed the redevelopment of the Elmwood Park Elmwood Park, village (1990 pop. 23,206), Cook co., NE Ill., a suburb of Chicago; inc. 1914. It is chiefly residential. Shopping Center (Elmwood Park, NJ) - expected to contribute approximately $0.025 incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. FFO per share on an annual basis -- Commenced the de-malling and re-anchoring of the Gateway Shopping Center (Burlington, VT) - also expected to contribute approximately $0.025 FFO per share on an annual basis starting in 2nd half of 2003 -- Re-anchored the Crescent crescent, emblematic representation of the quarter moon. The crescent and star, ancient Byzantine symbols that became the emblems of Constantinople, were also assumed as the standard of the Ottoman Turks. Plaza (Brockton, MA) with Home Depot The Home Depot (NYSE: HD) is an American retailer of home improvement and construction products and services. Headquartered in Vinings, just outside Atlanta in unincorporated Cobb County, Georgia, Home Depot employs more than 355,000 people and operates 2,164 big-box in 107,000 square feet replacing former Bradlees store - will generate approximately $0.01 incremental FFO per share on an annual basis Acquisitions -- Ohio Portfolio - $27 million acquisition of three grocery-anchored shopping centers - anticipated to generate 15% initial leveraged return and contribute approximately $0.01 FFO per share on an annual basis -- Brandywine Portfolio - Acquired one-million square foot value-based retail portfolio for $88 million - expected to generate 15% initial leveraged return and contribute approximately $0.04 FFO per share on an annual basis -- Kroger/Safeway Portfolio - Acquired one-million square foot supermarket portfolio of 25 Kroger and Safeway supermarkets for $47 million ($47 per square foot) - anticipated to generate in excess of 16% initial leveraged return (after debt amortization) and contribute approximately $0.04 FFO on an annual basis Fourth Quarter and Year-End Operating Results - Increase in FFO Acadia achieved year-over-year earnings growth in 2002 while absorbing FFO dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. of $0.12 per share as a result of the aggressive execution and completion of its non-core property disposition initiative. Going forward, Acadia may periodically sell assets on an opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik) 1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances. 2. basis, although it does not anticipate that any potential dilution potential dilution The decrease in the proportional equity position of a share of stock that will occur eventually if additional authorized shares are actually issued. from these sales would have a material impact on future earnings. 2002 earnings growth was also accomplished while strengthening the Company's balance sheet and improving its coverage ratios. FFO for the fourth quarter 2002 was $5.6 million, or $0.20 per share on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis compared to $7.8 million or $0.23 for the same quarter 2001. For the year ended December 31, 2002, FFO was $29.4 million, or $1.00 per share compared to $29.5 million or $0.86 in 2001. Annual 2002 FFO was $0.87 per share before $3.9 million, or $0.13 per share, of lease termination income received from a single tenant during the year. Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the fourth quarter 2002 was $1.5 million, or $0.06 per share on a fully diluted basis, compared to $2.0 million, or $0.07 per share, for 2001. For the year ended December 31, 2002, income from continuing operations was $10.6 million, or $0.42 per share, compared to $5.3 million, or $0.19 per share, in 2001. Income from continuing operations for 2002 included $3.9 million of lease termination income received from a single tenant during the year. Dispositions - Creation of a Solid Core Portfolio Acadia completed its multi-year non-core disposition initiative with the sale of 20 non-core properties during 2002. These properties, totaling 3.0 million square feet and including the entire southeast portfolio, were sold for $74.3 million. In addition to exiting markets not consistent with Acadia's core portfolio of supermarket and discounter-anchored shopping centers located in high barrier to entry markets with strong demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. , the Company also reduced its exposure to several weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. retailers including Kmart and Ames Ames, city (1990 pop. 47,198), Story co., central Iowa, on the Skunk River; inc. 1870. Its chief manufactures are electronic, water-analysis, and water-treatment equipment; motor vehicles; construction materials; and machinery. Iowa State Univ. . Most recently,
Acadia further reduced its exposure to Kmart during the fourth quarter
2002 through the sale of two shopping centers to a single buyer for
$16.8 million. The first property, the Manahawkin Village Shopping
Center, located in Manahawkin, NJ, is anchored by an 112,000 square foot
Kmart which paid the highest rent among all of the Kmart locations
within Acadia's portfolio. The second property sold was the Valmont
Plaza, a 200,000 square foot shopping center located in West Hazelton,
PA.
To date, the Company has reduced its exposure to Kmart by four locations and Ames by five locations. Although Kmart is still the top tenant in the portfolio, it has been reduced from 6.6% to 4.7% of portfolio base rents. Even following Kmart's 2003 announcement of 326 store closings, all of the Kmart stores in Acadia's portfolio are open, operating and paying full rents with occupancy costs Occupancy costs are the whole life costs of buildings and their associated land from occupancy until disposal. These costs may be incurred on a regular or irregular basis. Occupancy costs are those costs related to occupying a space including; rent, real estate taxes, personal under 3% and average sales of $176 per square foot. Following the completion of the non-core disposition initiative as well as recent acquisitions, Acadia now currently owns, or has interests in, and operates a core portfolio of 62 properties totaling approximately nine million square feet which is comprised primarily of shopping centers anchored by grocery and value-oriented retail located in the northeast and mid-west regions of the country. Top 10 tenants now include necessity-based retailers with weighted average sales of $378 per square foot including TJ Maxx, Waldbaum's (A&P), Wal-Mart, Price Chopper Price Chopper may refer to:
2. A program for MS-DOS. and Redner's Supermarket. Redevelopment Activity - Elmwood Park Shopping Center Project Completed in 2002 Acadia's two redevelopment projects progressed on time and on budget during 2002, with one shopping center coming back on-line during the year: Elmwood Park Shopping Center In the fourth quarter 2002, the Company completed the redevelopment project at the Elmwood Park Shopping Center, located in Elmwood Park, NJ. Acadia replaced a former in-line, 28,000 square foot Grand Union supermarket with a 49,000 square foot Pathmark supermarket and also relocated re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. an existing in-line Walgreens to a new 15,000 square foot location with a drive-through pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. . This shopping center is anticipated to generate $0.025 incremental FFO on an annual basis. Gateway Shopping Center During 2002, Acadia commenced the de-malling and re-anchoring of the Gateway Shopping Center located in South Burlington South Burlington, city (1990 pop. 12,809), Chittenden co., NW Vt., on Lake Champlain; inc. 1971. Electronic equipment, skiing equipment, and medical instruments are manufactured. Burlington International Airport is there. , VT. The project, formerly a partially enclosed en·close also in·close tr.v. en·closed, en·clos·ing, en·clos·es 1. To surround on all sides; close in. 2. To fence in so as to prevent common use: enclosed the pasture. mini-mall with an undersized undersized see dwarfism, runt. Grand Union, is being converted into a new open-air community shopping center with a 72,000 square foot Shaw's supermarket. Demolition Demolition is the opposite of construction: the tearing-down of buildings and other structures. It contrasts with deconstruction, which is the taking down of a building while carefully preserving valuable elements for re-use. is complete, and construction, which has already begun, is expected to be completed in 2003. The center is already 83% pre-leased and is anticipated to contribute $0.025 FFO on an annual basis commencing the second half of 2003. Portfolio Activity - 8% Increase for New and Renewal Leases During 2002, Acadia executed 71 new and renewal leases totaling 490,000 square feet, or 9% of the portfolio gross leasable area Gross leasable area (GLA) in the retail development industry is a term applied to shopping malls, lifestyle centers, outlet malls and other retail centers to indicate the amount of floor space available to be rented. ("GLA"), at an average increase of 8.1% over the previous base rents on a cash basis. Average in-place rents were $9.60 per square foot as of December 31, 2002 which represents an 8.6% increase over 2001 in-place rents on a same property basis. This was in part due to the rejection of three Ames leases during 2002 which were paying an average rent of $4.50 per square foot. Within the Company's portfolio of operating properties, year-end occupancy was 86.3% compared to 90.9% for the third quarter 2002, primarily the result of the closing of three Ames locations during the fourth quarter 2002. Excluding the impact of the Ames closings, the portfolio occupancy was 91.1%. The Ames closings and their effect on the portfolio occupancy were anticipated by Acadia. On a same property basis, occupancy for the fourth quarter 2001 was 93.0%. Same property net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. ("NOI NOI Net Operating Income NOI Notice of Intent NOI Nation of Islam NOI Notice of Inquiry NOI Neuro Orthopaedic Institute NOI New Organizing Institute NOI Notice of Interest NOI No Offense Intended NOI National Olympiad in Informatics ") for the retail portfolio increased 0.1% for the full year 2002 over 2001. Despite the effect of the closing of the Ames locations during the fourth quarter 2002 and an increase in property insurance costs for 2002, increases in rents from new and renewal leases as well as scheduled increases in contractual tenant rents offset these factors. Including the two residential properties currently owned by Acadia, same property NOI decreased by 0.5% in 2002. Same property NOI for first quarter 2003 is expected to be adversely impacted due to the unusually harsh winter season. Balance Sheet - Continued Strengthening for 2002 For 2002, the strength of Acadia's balance sheet was evidenced by positive trends in its financial ratios as well as sufficient in-place working capital to fund all of its foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. internal and external capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. : -- Debt to total market capitalization was 47% (based on current common share price) with a blended cost of debt of 5.9% -- 74% of the total mortgage debt was fixed-rate, inclusive of inclusive of prep. Taking into consideration or account; including. the effect of interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. and the Company's pro-rata share of joint venture debt. This contrasts with 62% fixed as of the end of 2001 -- Fixed-charge ratio was 3.0 times (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become / interest expense plus preferred distributions) -- Dividend payout ratio for the fourth quarter 2002 was approximately 66% of FFO -- $40 million of working capital at year-end with an additional $45 million available under current credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities Dividend Increase - 11.5% Increase for 2003 - Follows 8% Increase in 2002 In January of 2003, Acadia announced that its Board of Trustees board of trustees Politics The posse of thugs who oversee an institution's administration. See Board of directors. approved an increase in Acadia's quarterly dividend to $0.145 per share, which represents an 11.5% increase over the $0.13 quarterly dividend paid by Acadia during 2002. On an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis, the dividend will increase $0.06 resulting in an annual 2003 dividend of $0.58. This follows an 8% increase in Acadia's dividend for 2002. Even after the recent dividend increase, Acadia expects to maintain a payout ratio Payout Ratio The percentage of earnings paid out in dividends. It is calculated by dividing dividends per share by earnings per share. Notes: The payout ratio indicates how well earnings support the dividend payments: the lower the ratio, the more secure the dividend. that is among the most conservative in its sector based on 2003 earnings guidance. The first quarter 2003 dividend is payable April 15, 2003 to shareholders of record as of March 31, 2003. Acquisitions - 2003 Acquisition Guidance Already Achieved Ohio Portfolio In 2002, Acadia launched its acquisition joint venture with the acquisition of three supermarket-anchored shopping centers located in Ohio. The total purchase price for the three properties, which aggregate 324,000 square feet, was $26.7 million. The purchase price represented in excess of an 11.5% cap rate on the current net operating income before reserves and imputed Attributed vicariously. In the legal sense, the term imputed is used to describe an action, fact, or quality, the knowledge of which is charged to an individual based upon the actions of another for whom the individual is responsible rather than on the individual's management fees. Acadia's initial cash flow return (leveraged yield) for 2003 on its equity investment is projected to be approximately 15%. Kroger/Safeway Portfolio In January of 2003, the joint venture acquired a one million square foot supermarket portfolio consisting of twenty-five anchor-only leases with either Kroger or Safeway supermarkets. The purchase price of $47.0 million included the assumption of $34.5 of existing debt, which fully amortizes over the remaining seven year term. Even after the heavy debt amortization, the projected cash flow on Acadia's portion of its equity investment is anticipated to yield in excess of a 16% return. Brandywine Portfolio In February of 2003, the joint venture acquired another one million square foot portfolio for an initial purchase price of $88.0 million. The portfolio consists of two open-air, value-based shopping centers. The first is the Market Square Shopping Center, a 103,000 square foot community shopping center anchored by a TJ Maxx and Trader Joe's Trader Joe's is a privately held chain of specialty grocery stores headquartered in Monrovia, California. As of September 2007, Trader Joe's has a total of 284 stores.[1] gourmet grocery. The second center, the Brandywine Towne Center, consists of two components. The first is 450,000 square feet which is 97% occupied by dominant tenants including Lowe's, Bed Bath & Beyond, Regal Cinema, Michaels, Petsmart, Old Navy, Annie Sez, Thomasville Furniture, KB Toys K•B Toys (previously known as Kay Bee Toys) is a chain of mall-based retail toy stores in the United States. It was founded in 1922 by the Kaufman brothers. It currently operates 605 stores in 44 U.S. states, Puerto Rico as well as Guam. and Dick's Sporting Goods Dick's Sporting Goods (NYSE: DKS) is the largest full-line sporting goods retailer in the world. It is headquartered in Pittsburgh, Pennsylvania, USA and has locations in thirty-four states with 314 stores. . The second component is 420,000 square feet of existing space of which Target occupies 138,000 square feet. The joint venture will pay for the balance of space on an "earnout" basis only when it is leased. The initial acquisition price represents in excess of a 10.25% capitalization rate Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. based on the current net operating income. The project is financed with $68.0 million of 6.2% fixed-rate debt resulting in an initial leveraged yield in excess of 15%. In total, these acquisitions are projected to contribute approximately $0.09 to $0.10 of FFO on an annual basis, or approximately 10% external growth on annual 2002 FFO of $0.87. Outlook - Guidance for 2003 Increased Acadia has also revised upward its 2003 earnings guidance which was originally provided in its third quarter 2002 earnings announcement. The Company currently forecasts its 2003 FFO will range from $0.88 to $0.92 per share. This compares to the original 2003 forecast of $0.85 to $0.90 per share. Compared to 2002 earnings, the current 2003 forecast includes dilution of $0.05 from 2002 non-core asset dispositions as well as $0.06 dilution from the closing of three Ames locations during the fourth quarter of 2002. Further details for the 2003 forecast will be discussed in the conference call to be conducted later today. Management Comments Commenting on the results for the quarter, Kenneth Bernstein, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "The results for 2002 evidenced our success in the completion of our multi-year turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. program - which has focused on all the key areas of our business. First, we have created a solid core portfolio through the aggressive disposition of non-core retail properties and the completion of major redevelopment projects. Second, we have achieved a healthy balance sheet as evidenced by strong debt service coverage and one of the most conservative dividend payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. coverage ratios in our sector. Lastly, we have executed on a rational external growth program through the launching of our acquisition joint venture in 2002 and three major acquisitions over the past year. By aggressively executing in all of these areas, we have now created a platform from which to deliver continued growth to our shareholders." Investor Conference Call Kenneth Bernstein, President and CEO, and Perry Kamerman, CFO See Chief Financial Officer. , will conduct a conference call February 25, 2003 at 2:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. to review the Company's earnings and operating results. The live conference call can be accessed by dialing 888-482-0024 (internationally 617-801-9702). No passcode is required. The call will also be webcast and can be accessed in a listen-only mode at Acadia's web site at www.acadiarealty.com. If you are unable to participate during the live webcast, the call will be archived and available on Acadia's website. Alternatively, to access the replay by phone, dial 888-286-8010 (internationally 617-801-6888). The passcode will be 4872048. The phone replay will be available through Monday, March 3, 2003. Acadia Realty Trust, headquartered on Long Island, 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 Eastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Certain matters in this press release may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. or change in events, conditions or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or on which any such statement is based. The Company considers funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. ("FFO") as defined by the National Association of Real Estate Investment Trusts ("NAREIT NAREIT National Association of Real Estate Investment Trusts ") to be an appropriate supplemental disclosure of operating performance for an equity REIT Equity REIT A Real Estate Investment Trust that assumes ownership status in the property it invests in enabling investors of the REIT to earn dividends on rental income from the property and appreciation in property resale. Antithesis of a Mortgage REIT. due to its widespread acceptance and use within the REIT and analyst communities. FFO is presented to assist investors in analyzing the performance of the Company. However, the Company's method of calculating FFO may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. FFO does not represent cash generated from operations as defined by generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") and is not indicative of cash available to fund all cash needs, including distributions. It should not be considered as an alternative to net income for the purpose of evaluating the Company's performance or to cash flows as a measure of liquidity. For more information visit Acadia Realty Trust's Web site at www.acadiarealty.com.
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights
For the Quarters and Years ended December 31, 2002 and 2001
(dollars in thousands, except per share data)
STATEMENTS OF INCOME
For the quarters ended For the years ended
December 31, December 31,
Revenues 2002 2001 2002 2001
-----------------------------------------------
Minimum rents $ 12,592 $ 11,921 $ 48,488 $ 47,086
Percentage rents 477 530 1,079 1,196
Expense reimbursements 3,358 2,745 11,419 10,884
Lease termination
income -- -- 3,945 --
Other property income 83 125 536 589
Other 1,080 538 3,880 1,527
-----------------------------------------------
Total revenues 17,590 15,859 69,347 61,282
-----------------------------------------------
Operating expenses
Property operating 4,061 2,709 12,274 11,597
Real estate taxes 2,166 2,103 8,447 8,427
General and
administrative 2,886 2,541 10,173 9,025
Depreciation and
amortization 3,845 3,453 14,804 13,605
Abandoned project costs -- -- 274 --
-----------------------------------------------
Total operating
expenses 12,958 10,806 45,972 42,654
-----------------------------------------------
Operating income 4,632 5,053 23,375 18,628
Equity in earnings of
unconsolidated
partnerships 303 90 628 504
Interest expense (2,810) (2,712) (11,017) (12,370)
Minority interest (653) (473) (2,426) (1,466)
-----------------------------------------------
Income from continuing
operations 1,472 1,958 10,560 5,296
-----------------------------------------------
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights
For the Quarters and Years ended December 31, 2002 and 2001
(dollars in thousands, except per share data)
STATEMENTS OF INCOME (continued)
For the quarters ended For the years ended
December 31, December 31,
2002 2001 2002 2001
-----------------------------------------------
Discontinued
operations:
Operating income from
discontinued
operations $ 151 $ 874 $ 1,165 $ 3,972
Impairment of real
estate -- (1,130) (197) (15,886)
Gain on sale of
properties 6,349 9,454 9,662 17,734
Minority interest (742) (1,468) (1,791) (1,025)
-----------------------------------------------
Income from
discontinued
operations 5,758 7,730 8,839 4,795
-----------------------------------------------
Income before
extraordinary item
and cumulative effect
of change in
accounting principle 7,230 9,688 19,399 10,091
Extraordinary item -
loss on early
extinguishments of
debt -- -- -- (140)
Cumulative effect of
change in accounting
principle -- -- -- (149)
-----------------------------------------------
Net income $ 7,230 $ 9,688 $ 19,399 $ 9,802
===============================================
Net income per Common
Share - basic (a) $ .29 $ .34 $ .77 $ .35
===============================================
Net income per Common
Share - diluted (a) $ .28 $ .34 $ .76 $ .35
===============================================
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights
For the Quarters and Years ended December 31, 2002 and 2001
(dollars in thousands, except per share data)
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS (b)
For the quarters ended For the years ended
December 31, December 31,
2002 2001 2002 2001
-----------------------------------------------
Net income $ 7,230 $ 9,688 $ 19,399 $ 9,802
Depreciation of real
estate and
amortization of
leasing costs:
Wholly owned and
consolidated
partnerships 3,625 4,446 15,305 18,422
Unconsolidated
partnerships 183 157 662 627
Income attributable to
minority interest in
Operating Partnership 948 1,874 2,928 2,221
Gain on sale of
properties (c) (6,349) (9,454) (9,089) (17,734)
Impairment of real
estate -- 1,130 197 15,886
Extraordinary item -- -- -- 140
Cumulative effect of
change in accounting
principal -- -- -- 149
-----------------------------------------------
Funds from operations $ 5,637 $ 7,841 $ 29,402 $ 29,513
===============================================
Funds from operations
per share - Basic (d) $ .20 $ .23 $ 1.01 $ .86
===============================================
Funds from operations
per share -
Diluted (d) $ .20 $ .23 $ 1.00 $ .86
===============================================
Funds from operations
per share -
Continuing operations
(Diluted) (d) $ .19 $ .17 $ .91 $ .58
===============================================
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights
As of December 31, 2002 and 2001
(dollars in thousands, except per share data)
SELECTED BALANCE SHEET INFORMATION
December 31, December 31,
2002 2001
------------ ------------
Cash and cash equivalents $ 45,168 $ 31,905
Rental property, at cost 413,878 398,416
Total assets 410,935 493,939
Mortgage notes payable 202,361 211,444
Total liabilities 224,487 276,025
Fixed rate debt: (e) 145,236 108,521
% of outstanding debt 72 % 51 %
Weighted average interest rate 6.8 % 7.5 %
Variable rate debt $ 57,125 $ 102,923
% of outstanding debt 28 % 49 %
Weighted average interest rate 3.3 % 3.9 %
Total weighted average interest rate 5.8 % 5.7 %
Notes:
(a) Basic net income per share is computed based on the weighted
average number of Common Shares outstanding for the quarters ended
December 31, 2002 and 2001 of 25,173,874 and 28,575,250,
respectively, and the weighted average number of Common Shares
outstanding for the years ended December 31, 2002 and 2001 of
25,320,631 and 28,313,070, respectively. Diluted net income per
share, which assumes the conversion of securities and other
contracts to issue Common Shares, is computed based on the
weighted average number of Common Shares outstanding for the
quarter and year ended December 31, 2002 of 25,683,279 and
25,806,035, respectively. For the quarter and year ended December
31, 2001, no additional Common Shares were reflected as the impact
would be non-dilutive in such periods.
(b) Consistent with the NAREIT definition, the Company defines FFO as
net income (computed in accordance with GAAP), excluding gains (or
losses) from sales of property, plus depreciation and
amortization, and after adjustments for unconsolidated
partnerships and joint ventures.
(c) Net of minority interest of $573 on the sale of land during 2002.
(d) Assumes full conversion of a weighted average 3,246,320 and
5,436,260 OP Units into Common Shares for the quarters ended
December 31, 2002 and 2001, and 3,677,065 and 6,028,392 OP Units
into Common Shares for the years ended December 31, 2002 and 2001.
(e) Fixed-rate debt includes $87,141 of notional principal fixed
through swap transactions. Conversely, variable-rate debt excludes
this amount.
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