Segment Reporting

6 Months Ended

Jun. 30, 2020

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):

	For the Three Months Ended June 30, 2020
	Core Portfolio			Funds			Structured Financing		Unallocated			Total
Revenues	$	38,602		$	25,171		$	—	$	—		$	63,773
Depreciation and amortization		(18,150	)		(15,643	)		—		—			(33,793	)
Property operating expenses, other operating and real estate taxes		(17,961	)		(9,542	)		—		—			(27,503	)
General and administrative expenses		—			—			—		(8,720	)		(8,720	)
Impairment charge		—			—			—		—			—
Gain on disposition of properties		—			485			—		—			485
Operating income (loss)		2,491			471			—		(8,720	)		(5,758	)
Interest income		—			—			2,095		—			2,095
Realized and unrealized holding gains on investments and other		—			87,751			60		—			87,811
Equity in earnings (losses) of unconsolidated affiliates		(1,070	)		284			—		—			(786	)
Interest expense		(8,602	)		(9,717	)		—		—			(18,319	)
Income tax provision		—			—			—		(137	)		(137	)
Net (loss) income		(7,181	)		78,789			2,155		(8,857	)		64,906
Net loss (income) attributable to noncontrolling interests		5,068			(50,564	)		—		—			(45,496	)
Net (loss) income attributable to Acadia	$	(2,113	)	$	28,225		$	2,155	$	(8,857	)	$	19,410

	For the Three Months Ended June 30, 2019
	Core Portfolio			Funds			Structured Financing		Unallocated			Total
Revenues	$	43,212		$	27,017		$	—	$	—		$	70,229
Depreciation and amortization		(15,092	)		(15,212	)		—		—			(30,304	)
Property operating expenses, other operating and real estate taxes		(12,217	)		(10,188	)		—		—			(22,405	)
General and administrative expenses		—			—			—		(9,034	)		(9,034	)
Impairment charge		—			(1,400	)		—		—			(1,400	)
Operating income		15,903			217			—		(9,034	)		7,086
Interest and other income		327			1,586			2,229		—			4,142
Equity in earnings of unconsolidated affiliates		3,254			305			—		—			3,559
Interest expense		(6,839	)		(12,920	)		—		—			(19,759	)
Income tax provision		—			—			—		(265	)		(265	)
Net income (loss)		12,645			(10,812	)		2,229		(9,299	)		(5,237	)
Net loss attributable to noncontrolling interests		425			13,892			—		—			14,317
Net income attributable to Acadia	$	13,070		$	3,080		$	2,229	$	(9,299	)	$	9,080

	As of or for the Six Months Ended June 30, 2020
	Core Portfolio			Funds			Structured Financing			Unallocated			Total
Revenues	$	78,535		$	56,658		$	—		$	—		$	135,193
Depreciation and amortization		(35,207	)		(31,963	)		—			—			(67,170	)
Property operating expenses, other operating and real estate taxes		(29,775	)		(21,495	)		—			—			(51,270	)
General and administrative expenses		—			—			—			(17,790	)		(17,790	)
Impairment charges		—			(51,549	)		—			—			(51,549	)
Gain on disposition of properties		—			485			—			—			485
Operating income (loss)		13,553			(47,864	)		—			(17,790	)		(52,101	)
Interest income		—			—			5,024			—			5,024
Realized and unrealized holding gains on investments and other		—			87,751			(470	)		—			87,281
Equity in earnings (losses) of unconsolidated affiliates		572			(103	)		—			—			469
Interest expense		(16,852	)		(19,769	)		—			—			(36,621	)
Income tax benefit		—			—			—			815			815
Net (loss) income		(2,727	)		20,015			4,554			(16,975	)		4,867
Net loss (income) attributable to noncontrolling interests		6,284			(155	)		—			—			6,129
Net income attributable to Acadia^(a)	$	3,557		$	19,860		$	4,554		$	(16,975	)	$	10,996

Real estate at cost^(b)	$	2,362,334		$	1,799,890		$	—		$	—		$	4,162,224
Total assets^(b)	$	2,323,986		$	1,870,070		$	134,692		$	—		$	4,328,748
Cash paid for acquisition of real estate	$	19,963		$	1,245		$	—		$	—		$	21,208
Cash paid for development and property improvement costs	$	6,443		$	14,090		$	—		$	—		$	20,533

	As of or for the Six Months Ended June 30, 2019
	Core Portfolio			Funds			Structured Financing		Unallocated			Total
Revenues	$	89,899		$	54,317		$	—	$	—		$	144,216
Depreciation and amortization		(30,770	)		(29,867	)		—		—			(60,637	)
Property operating expenses, other operating and real estate taxes		(24,211	)		(19,331	)		—		—			(43,542	)
General and administrative expenses		—			—			—		(17,357	)		(17,357	)
Impairment charge		—			(1,400	)		—		—			(1,400	)
Gain on disposition of properties		—			2,014			—		—			2,014
Operating income		34,918			5,733			—		(17,357	)		23,294
Interest and other income		327			1,586			4,499		—			6,412
Equity in earnings of unconsolidated affiliates		5,524			306			—		—			5,830
Interest expense		(13,532	)		(24,086	)		—		—			(37,618	)
Income tax provision		—			—			—		(219	)		(219	)
Net income (loss)		27,237			(16,461	)		4,499		(17,576	)		(2,301	)
Net loss attributable to noncontrolling interests		385			23,193			—		—			23,578
Net income attributable to Acadia ^(a)	$	27,622		$	6,732		$	4,499	$	(17,576	)	$	21,277

Real estate at cost ^(b)	$	2,154,630		$	1,784,895		$	—	$	—		$	3,939,525
Total assets^(b)	$	2,267,022		$	1,848,238		$	94,662	$	—		$	4,209,922
Cash paid for acquisition of real estate	$	49,402		$	89,314		$	—	$	—		$	138,716
Cash paid for development and property improvement costs	$	26,876		$	28,996		$	—	$	—		$	55,872

(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 six months ended June 30, 2020 and 2019, respectively. These amounts include the results of three entities, including the unconsolidated Town Center venture and the consolidated Brandywine Holdings 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 4).

(b)

Real estate at cost and total assets for the Funds segment include $604.8 million and $603.3 million, or $176.0 million and $174.7 million net of non-controlling interests, related to Fund II’s City Point property at June 30, 2020 and December 31, 2019, respectively.