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Segment Reporting
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting

12. Segment Reporting

The Company has three reportable segments: Core Portfolio, Funds and Structured Financing. The Company’s Core Portfolio consists primarily of high-quality retail properties located primarily in high-barrier-to-entry, densely-populated metropolitan areas with a long-term investment horizon. The Company’s Funds hold primarily retail real estate in which the Company co-invests with high-quality institutional investors. The Company’s Structured Financing segment consists of earnings and expenses related to notes and mortgages receivable which are held within the Core Portfolio or the Funds (Note 3). Fees earned by the Company as the general partner or managing member of the Funds are eliminated in the Company’s consolidated financial statements and are not presented in the Company’s segments.

The following tables set forth certain segment information for the Company (in thousands):

 

 

 

As of or for the Three Months Ended March 31, 2020

 

 

 

Core

Portfolio

 

 

Funds

 

 

Structured

Financing

 

 

Unallocated

 

 

Total

 

Revenues

 

$

39,933

 

 

$

31,487

 

 

$

—

 

 

$

—

 

 

$

71,420

 

Depreciation and amortization

 

 

(17,056

)

 

 

(16,321

)

 

 

—

 

 

 

—

 

 

 

(33,377

)

Property operating expenses, other operating and real estate taxes

 

 

(11,814

)

 

 

(11,953

)

 

 

—

 

 

 

—

 

 

 

(23,767

)

General and administrative expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(9,070

)

 

 

(9,070

)

Impairment charges

 

 

—

 

 

 

(51,549

)

 

 

—

 

 

 

—

 

 

 

(51,549

)

Operating income (loss)

 

 

11,063

 

 

 

(48,336

)

 

 

—

 

 

 

(9,070

)

 

 

(46,343

)

Interest income

 

 

—

 

 

 

—

 

 

 

2,929

 

 

 

—

 

 

 

2,929

 

Other expense

 

 

—

 

 

 

—

 

 

 

(530

)

 

 

—

 

 

 

(530

)

Equity in earnings (losses) of unconsolidated affiliates

 

 

1,642

 

 

 

(387

)

 

 

—

 

 

 

—

 

 

 

1,255

 

Interest expense

 

 

(8,250

)

 

 

(10,052

)

 

 

—

 

 

 

—

 

 

 

(18,302

)

Income tax benefit

 

 

—

 

 

 

—

 

 

 

—

 

 

 

952

 

 

 

952

 

Net income (loss)

 

 

4,455

 

 

 

(58,775

)

 

 

2,399

 

 

 

(8,118

)

 

 

(60,039

)

Net loss attributable to noncontrolling interests

 

 

1,216

 

 

 

50,409

 

 

 

—

 

 

 

—

 

 

 

51,625

 

Net income (loss) attributable to Acadia (a)

 

$

5,671

 

 

$

(8,366

)

 

$

2,399

 

 

$

(8,118

)

 

$

(8,414

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate at cost (b)

 

$

2,289,449

 

 

$

1,792,667

 

 

$

—

 

 

$

—

 

 

$

4,082,116

 

Total assets (b)

 

$

2,330,971

 

 

$

1,801,008

 

 

$

173,159

 

 

$

—

 

 

$

4,305,138

 

Cash paid for acquisition of real estate

 

$

19,088

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

19,088

 

Cash paid for development and property improvement costs

 

$

2,638

 

 

$

10,695

 

 

$

—

 

 

$

—

 

 

$

13,333

 

 

 

 

As of or for the Three Months Ended March 31, 2019

 

 

 

Core

Portfolio

 

 

Funds

 

 

Structured

Financing

 

 

Unallocated

 

 

Total

 

Revenues

 

$

46,423

 

 

$

27,562

 

 

$

—

 

 

$

—

 

 

$

73,985

 

Depreciation and amortization

 

 

(15,679

)

 

 

(14,654

)

 

 

—

 

 

 

—

 

 

 

(30,333

)

Property operating expenses, other operating and real estate taxes

 

 

(11,732

)

 

 

(9,403

)

 

 

—

 

 

 

—

 

 

 

(21,135

)

General and administrative expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(8,323

)

 

 

(8,323

)

Gain on disposition of properties

 

 

—

 

 

 

2,014

 

 

 

—

 

 

 

—

 

 

 

2,014

 

Operating income

 

 

19,012

 

 

 

5,519

 

 

 

—

 

 

 

(8,323

)

 

 

16,208

 

Interest income

 

 

—

 

 

 

—

 

 

 

2,270

 

 

 

—

 

 

 

2,270

 

Equity in earnings of unconsolidated affiliates

 

 

2,270

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

2,271

 

Interest expense

 

 

(6,693

)

 

 

(11,166

)

 

 

—

 

 

 

—

 

 

 

(17,859

)

Income tax benefit

 

 

—

 

 

 

—

 

 

 

—

 

 

 

46

 

 

 

46

 

Net income (loss)

 

 

14,589

 

 

 

(5,646

)

 

 

2,270

 

 

 

(8,277

)

 

 

2,936

 

Net (income) loss attributable to noncontrolling interests

 

 

(41

)

 

 

9,302

 

 

 

—

 

 

 

—

 

 

 

9,261

 

Net income attributable to Acadia (a)

 

$

14,548

 

 

$

3,656

 

 

$

2,270

 

 

$

(8,277

)

 

$

12,197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate at cost (b)

 

$

2,114,727

 

 

$

1,640,864

 

 

$

—

 

 

$

—

 

 

$

3,755,591

 

Total assets (b)

 

$

2,244,349

 

 

$

1,684,757

 

 

$

114,935

 

 

$

—

 

 

$

4,044,041

 

Cash paid for acquisition of real estate

 

$

32,034

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

32,034

 

Cash paid for development and property improvement costs

 

$

4,033

 

 

$

15,876

 

 

$

—

 

 

$

—

 

 

$

19,909

 

 

 

 

(a)

Net income attributable to Acadia for the Core segment includes $1.0 million, and $1.2 million associated with one property, Town Center, for the three months ended March 31, 2020 and 2019, respectively. These amounts include the results of three entities, including the unconsolidated Town Center venture and the consolidated

 

Brandywine Holdings (Note 4) and Brandywine Maintenance Corp., which on a combined basis constitute the operating results of the shopping center. In April 2020, the Town Center venture was consolidated (Note 15).

 

(b)

Real estate at cost and total assets for the Funds segment include $603.4 million and $603.3 million, or $175.6 million and $174.7 million net of non-controlling interests, related to Fund II’s City Point property at March 31, 2020 and December 31, 2019, respectively.