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Shareholders' Equity, Noncontrolling Interests and Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2023

Equity, Including Portion Attributable to Noncontrolling Interest [Abstract]

The following table sets forth the distributions declared and/or paid during the periods presented:


Date Declared	Amount Per Share		Record Date	Payment Date

February 15, 2022	$	0.18	March 31, 2022	April 14, 2022
May 4, 2022	$	0.18	June 30, 2022	July 15, 2022
August 10, 2022	$	0.18	September 30, 2022	October 14, 2022
November 9, 2022	$	0.18	December 30, 2022	January 13, 2023
January 17, 2023	$	0.18	March 31, 2023	April 14, 2023
May 3, 2023	$	0.18	June 30, 2023	July 14, 2023
August 9, 2023	$	0.18	September 29, 2023	October 13, 2023

Summary of Activity in Accumulated Other Comprehensive Income (Loss)

The following tables set forth the activity in accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2023 and 2022 (in thousands):


	Acadia's Share
Balance at July 1, 2023	$	49,855

Other comprehensive income before reclassifications - swap agreements		26,763
Reclassification of realized interest on swap agreements		(9,478	)
Net current period other comprehensive income		17,285
Net current period other comprehensive income attributable to noncontrolling interests		(1,580	)
Balance at September 30, 2023	$	65,560

Balance at July 1, 2022	$	11,240

Other comprehensive income before reclassifications - swap agreements		44,114
Reclassification of realized interest on swap agreements		1,518
Net current period other comprehensive income		45,632
Net current period other comprehensive income attributable to noncontrolling interests		(7,188	)
Balance at September 30, 2022	$	49,684


	Acadia's Share
Balance at January 1, 2023	$	46,817

Other comprehensive income before reclassifications - swap agreements		45,034
Reclassification of realized interest on swap agreements		(24,293	)
Net current period other comprehensive income		20,741
Net current period other comprehensive income attributable to noncontrolling interests		(1,998	)
Balance at September 30, 2023	$	65,560

Balance at January 1, 2022	$	(36,214	)

Other comprehensive income before reclassifications - swap agreements		96,899
Reclassification of realized interest on swap agreements		10,778
Net current period other comprehensive income		107,677
Net current period other comprehensive income attributable to noncontrolling interests		(21,779	)
Balance at September 30, 2022	$	49,684

Summary of Change in Noncontrolling Interest

The following tables summarize the change in the noncontrolling interests for the three and nine months ended September 30, 2023 and 2022 (dollars in thousands):


	Noncontrolling Interests in Operating Partnership (a)			Noncontrolling Interests in Partially-Owned Affiliates (b)			Total			Redeemable Noncontrolling Interests (c)
Balance at July 1, 2023	$	103,813		$	348,624		$	452,437		$	59,833
Distributions declared of $0.18 per Common OP Unit and distributions on Preferred OP Units		(1,338	)		—			(1,338	)
Net income (loss) for the three months ended September 30, 2023		79			(12,426	)		(12,347	)		(2,495	)
Conversion of 10,828 Common OP Units to Common Shares by limited partners of the Operating Partnership		(182	)		—			(182	)		—
Other comprehensive income - unrealized gain on valuation of swap agreements		950			4,212			5,162			—
Reclassification of realized interest expense on swap agreements		(56	)		(3,526	)		(3,582	)		—
City Point Loan accrued interest		—			—			—			(2,332	)
Capital call receivable		—			(16,300	)		(16,300	)		—
Noncontrolling interest contributions		—			16,600			16,600			315
Noncontrolling interest distributions		—			(1,754	)		(1,754	)		(37	)
Employee Long-term Incentive Plan Unit Awards		2,353			—			2,353			—
Reallocation of noncontrolling interests (d)		(2,039	)		—			(2,039	)		—
Balance at September 30, 2023	$	103,580		$	335,430		$	439,010		$	55,284

Balance at July 1, 2022	$	103,068		$	567,538		$	670,606		$	—
Distributions declared of $0.18 per Common OP Unit and distributions on Preferred OP Units		(1,276	)		—			(1,276	)		—
Net loss for the three months ended September 30, 2022		(2,958	)		(27,503	)		(30,461	)		(3,193	)
Conversion of 20,000 Common OP Units to Common Shares by limited partners of the Operating Partnership		(333	)		—			(333	)		—
Other comprehensive income - unrealized gain on valuation of swap agreements		2,145			4,877			7,022			—
Reclassification of realized interest expense on swap agreements		5			161			166			—
Acquisition of noncontrolling interest (e)		—			(50,435	)		(50,435	)		—
City Point Loan		—			—			—			(65,405	)
City Point Loan accrued interest		—			—			—			(1,564	)
Noncontrolling interest contributions		—			9,572			9,572			65,945
Noncontrolling interest distributions		—			(24,632	)		(24,632	)		—
Employee Long-term Incentive Plan Unit Awards		1,997			—			1,997			—
Reclassification of redeemable noncontrolling interests(f)		-			(76,569	)		(76,569	)		76,569
Reallocation of noncontrolling interests (d)		644			—			644			—
Balance at September 30, 2022	$	103,292		$	403,009		$	506,301		$	72,352


	Noncontrolling Interests in Operating Partnership (a)			Noncontrolling Interests in Partially-Owned Affiliates (b)			Total			Redeemable Noncontrolling Interests (c)
Balance at January 1, 2023	$	99,554		$	389,810		$	489,364		$	67,664
Distributions declared of $0.54 per Common OP Unit and distributions on Preferred OP Units		(4,022	)		—			(4,022	)		—
Net income (loss) for the nine months ended September 30, 2023		1,693			(8,756	)		(7,063	)		(5,661	)
Conversion of 102,261 Common OP Units to Common Shares by limited partners of the Operating Partnership		(1,715	)		—			(1,715	)		—
Other comprehensive income - unrealized gain on valuation of swap agreements		1,205			10,732			11,937			—
Reclassification of realized interest expense on swap agreements		(155	)		(9,784	)		(9,939	)		—
City Point Loan		—			—			—			(796	)
City Point Loan accrued interest		—			—			—			(6,995	)
Capital call receivable		—			(16,300	)		(16,300	)		—
Noncontrolling interest contributions		—			47,842			47,842			1,110
Noncontrolling interest distributions		—			(78,114	)		(78,114	)		(38	)
Employee Long-term Incentive Plan Unit Awards		8,719			—			8,719			—
Reallocation of noncontrolling interests (d)		(1,699	)		—			(1,699	)		—
Balance at September 30, 2023	$	103,580		$	335,430		$	439,010		$	55,284

Balance at January 1, 2022	$	94,120		$	534,202		$	628,322		$	—
Distributions declared of $0.54 per Common OP Unit and distributions on Preferred OP Units		(3,846	)		—			(3,846	)		—
Net loss for the nine months ended September 30, 2022		(1,686	)		(16,967	)		(18,653	)		(3,193	)
Conversion of 71,307 Common OP Units to Common Shares by limited partners of the Operating Partnership		(1,147	)		—			(1,147	)		—
Other comprehensive income - unrealized gain on valuation of swap agreements		4,780			13,840			18,620			—
Reclassification of realized interest expense on swap agreements		80			3,079			3,159			—
Acquisition of noncontrolling interest (e)		—			(91,811	)		(91,811	)		—
City Point Loan		—			—			—			(65,405	)
City Point Loan accrued interest		—			—			—			(1,564	)
Noncontrolling interest contributions		—			109,422			109,422			65,945
Noncontrolling interest distributions		—			(72,187	)		(72,187	)		—
Employee Long-term Incentive Plan Unit Awards		7,669			—			7,669			—
Reclassification of redeemable noncontrolling interests(f)		—			(76,569	)		(76,569	)		76,569
Reallocation of noncontrolling interests (d)		3,322			—			3,322			—
Balance at September 30, 2022	$	103,292		$	403,009		$	506,301		$	72,352

(a)

Noncontrolling interests in the Operating Partnership are comprised of (i) the limited partners’ 2,864,074 and 3,062,108 Common OP Units at September 30, 2023 and 2022, respectively; (ii) 188 Series A Preferred OP Units at each of September 30, 2023 and 2022; (iii) 126,384 and 126,593 Series C Preferred OP Units at September 30, 2023 and 2022, respectively; and (iv) 4,287,550 and 3,666,989 LTIP units at September 30, 2023 and 2022, respectively, as discussed in the Amended and Restated 2020 Plan (Note 13). Distributions declared for Preferred OP Units are reflected in net income (loss) in the table above.

(b)

Noncontrolling interests in partially-owned affiliates comprise third-party interests in Funds II, III, IV and V, and Mervyns II, and seven other subsidiaries.

(c)

Redeemable noncontrolling interests comprise third-party interests that have been granted put rights, as further described below.

(d)

Adjustment reflects the difference between the fair value of the consideration received or paid and the book value of the Common Shares, Common OP Units, Preferred OP Units, and LTIP Units involving changes in ownership.

(e)

Represents the acquisition of the 11.67% noncontrolling interest in Fund II and Mervyns II acquired on June 27, 2022 for $18.5 million and of a 21.67% interest in Fund II on August 1, 2022 for $5.8 million (Note 1).

(f)

Represents the reclassification of redeemable noncontrolling interests related to the City Point Loan in the third quarter of 2022.