Real Estate (Tables)

3 Months Ended

Mar. 31, 2023

Acquisition And Disposition Of Properties And Discontinued Operations [Abstract]

Schedule of Consolidated Real Estate

The Company’s consolidated real estate is comprised of the following for the periods presented (in thousands):

	March 31,			December 31,
	2023			2022
Land	$	881,717		$	817,802
Buildings and improvements		2,995,451			2,987,594
Tenant improvements		235,442			216,899
Construction in progress		13,299			21,027
Right-of-use assets - finance leases (Note 11)		25,086			25,086
Total		4,150,995			4,068,408
Less: Accumulated depreciation and amortization		(749,627	)		(725,143	)
Operating real estate, net		3,401,368			3,343,265
Real estate under development		117,914			184,602
Net investments in real estate	$	3,519,282		$	3,527,867

Schedule of Business Acquisitions, by Acquisition

During the three months ended March 31, 2023 and the year ended December 31, 2022, the Company acquired (through purchase, investment or foreclosure) the following consolidated retail properties and other real estate investments (dollars in thousands):

Property and Location	Percent Acquired	Date of Acquisition	Purchase Price
2023 Acquisitions
None
2022 Acquisitions and Foreclosure
Core
121 Spring Street - New York, NY	100%	Jan 12, 2022	$	39,637
Williamsburg Collection - Brooklyn, NY (a)	(a)	Feb 18, 2022		97,750
8833 Beverly Boulevard - West Hollywood, CA	100%	Mar 2, 2022		24,117
Henderson Avenue Portfolio - Dallas, TX (b)	100%	Apr 18, 2022		85,192
Subtotal Core				246,696
Fund III
640 Broadway - New York, NY (Foreclosure) (c)	100%	Jan 26, 2022		59,207
Subtotal Fund III				59,207
Total 2022 Acquisitions and Foreclosure			$	305,903

a)The Williamsburg Collection entity is a variable interest entity and the Company consolidates the entity because it is the entity's primary beneficiary (Note 15). The Company invested $2.8 million in its 49.99% equity interest and, through a separate lending subsidiary, provided a $64.1 million first mortgage loan and a $30.9 million mezzanine loan to subsidiaries of the venture (such equity and loans have been eliminated in consolidation). Pursuant to the entity’s operating agreement, the venture partner has a one-time right to put its 50.01% interest in the entity (the "Williamsburg NCI", which is further described in Note 10) to the Company for fair value at a future date. Given the preferred rate of return of the Company embedded in its equity interests and the accruing debt senior to the equity, the Company did not attribute

any initial redemption value to the Williamsburg NCI and recognized a bargain purchase gain of $1.2 million, which is included in Realized and unrealized holding gains on investments and other in the consolidated statements of income.

b)The Henderson Avenue Portfolio comprises 14 operating retail assets, one residential building and two development and redevelopment sites. One of the development sites was sold in October 2022.

The entity was previously accounted for as an equity method investment until an affiliate of Fund III acquired the venture partner's interest in a foreclosure action. Fund III now indirectly owns 100% of the entity and consolidates it (Note 4).

Schedule of Purchase Price Allocations

The following table summarizes the allocation of the purchase price of properties acquired during the periods presented (in thousands):

	Three Months Ended March 31,		Year Ended December 31,
	2023		2022
Net Assets Acquired
Land	$	—	$	119,898
Buildings and improvements		—		168,862
Acquisition-related intangible assets (Note 6)		—		29,016
Accounts receivable, prepaids and other assets		—		4,077
Accounts payable and other liabilities		—		(661	)
Acquisition-related intangible liabilities (Note 6)		—		(14,126	)
Net assets acquired	$	—	$	307,066
Consideration
Cash	$	—	$	242,633
Carrying value of note receivable exchanged in foreclosure (Note 3)		—		5,416
Existing interest in previously unconsolidated investment (Note 4)		—		17,822
Debt assumed		—		35,970
Liabilities assumed		—		4,062
Total consideration		—		305,903
Gain on bargain purchase		—		1,163
	$	—	$	307,066

Schedule of Significant Assumptions Used in Calculating Fair Value of the Asset Acquisitions

The most significant assumptions used in calculating the "as-if vacant" value for acquisition activity during 2022 is as follows:

	2023				2022
	Low		High		Low			High
Exit Capitalization Rate		—		—		4.25	%		7.25	%
Annual net rental rate per square foot on acquired buildings	$	—	$	—	$	20.00		$	825.00
Annual net rental rate per square foot on acquired ground lease	$	—	$	—	$	—		$	—

Schedule of Property Dispositions

During the three months ended March 31, 2023 and the year ended December 31, 2022, the Company disposed of the following consolidated properties and other real estate investments (in thousands):

Property and Location	Owner	Date Sold	Sale Price		Gain (Loss) on Sale
2023 Dispositions
None
2022 Dispositions
NE Grocer Portfolio (Selected Assets) - Pennsylvania	Fund IV	Jan 26, 2022     Mar 4, 2022	$	45,350	$	13,784
New Towne (Parcel) - Canton, MI	Fund V	Feb 1, 2022		2,231		1,776
Cortlandt Crossing - Westchester County, NY	Fund III	Feb 9, 2022		65,533		13,255
Lincoln Place - Fairview Heights, IL	Fund IV	May 25, 2022		40,670		12,216
Wake Forest Crossing - Wake Forest, NC	Fund IV	Aug 24, 2022		38,919		8,885
Henderson Avenue (Parcel) - Dallas, TX	Core	Oct 7, 2022		3,050		(194	)
330-340 River Street - Cambridge, MA	Core	Dec 13, 2022		26,400		7,439
Total 2022 Dispositions			$	222,153	$	57,161

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures

The aggregate rental revenue, expenses and pre-tax income reported within continuing operations for the aforementioned consolidated properties that were sold as well as the lease that was terminated (Note 11) during the three months ended March 31, 2023 and 2022 were as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Revenues	$	—	$	3,240
Expenses		—		(2,209	)
Gain on disposition of properties		—		28,815
Net income attributable to noncontrolling interests		—		(22,724	)
Net income attributable to Acadia	$	—	$	7,122

Schedule Of Development In Process Activities

Development activity for the Company’s consolidated properties comprised the following during the periods presented (dollars in thousands):

	January 1, 2023				Three Months Ended March 31, 2023						March 31, 2023
	Number of Properties		Carrying Value		Transfers In		Capitalized Costs		Transfers Out		Number of Properties		Carrying Value
Core		2	$	54,817	$	—	$	1,393	$	—		2	$	56,210
Fund II		—		34,072		—		1,107		—		—		35,179
Fund III		1		25,798		—		727		—		1		26,525
Fund IV (a)		1		69,915		—		—		69,915		—		—
Total		4	$	184,602	$	—	$	3,227	$	69,915		3	$	117,914

a)Transfers out include $69.9 million related to one Fund IV property that was transferred out of development.

	January 1, 2022				Year Ended December 31, 2022						December 31, 2022
	Number of Properties		Carrying Value		Transfers In		Capitalized Costs		Transfers Out		Number of Properties		Carrying Value
Core		—	$	42,517	$	9,610	$	2,690	$	—		2	$	54,817
Fund II (a)		—		35,125		—		503		1,556		—		34,072
Fund III		1		24,296		—		1,502		—		1		25,798
Fund IV (b)		1		101,835		—		215		32,135		1		69,915
Total		2	$	203,773	$	9,610	$	4,910	$	33,691		4	$	184,602

a)Transfers out include $1.6 million related to a portion of one Fund II property that was transferred out of development.

b)Transfers out include $13.4 million related to a portion of one Fund IV property that was transferred out of development and an impairment charge totaling $18.7 million on one Fund IV development property (Note 8).