Acadia Realty Trust Reports Fourth Quarter and Full Year 2012 Operating Results

  Acadia Realty Trust Reports Fourth Quarter and Full Year 2012 Operating
  Results

Business Wire

WHITE PLAINS, N.Y. -- February 5, 2013

Acadia Realty Trust (NYSE: AKR) today reported operating results for the
quarter and year ended December 31, 2012. All per share amounts are on a fully
diluted basis.

Fourth Quarter and Full Year 2012 Highlights

Earnings

  *Funds from operations (“FFO”) of $0.29 per share for the fourth quarter
    2012 and $1.04 for the full year 2012
  *Earnings per share (“EPS”) from continuing operations of $0.17 for the
    fourth quarter 2012 and $0.51 for the full year 2012
  *The Company forecasts a 2013 range for FFO per share of $1.17 to $1.25 and
    EPS of $0.66 to $0.71

Core Portfolio – $224 Million of Acquisitions and Strong Portfolio Performance

  *Same store net operating income (“NOI”) for the fourth quarter up 7.6%
    compared to 2011; up 3.7% for full year 2012 over 2011
  *December 31, 2012 portfolio occupancy of 94.2%
  *During 2012, Acadia closed on $224.3 million of acquisitions; $101.6
    million during the fourth quarter for 13 properties located in Chicago,
    Washington, D.C., Westport, Connecticut, and Bloomfield, New Jersey
  *Current pipeline under contract of $86.6 million

Fund Platform – Fund IV Invests on Lincoln Road in South Miami; Funds II and
III Profitably Monetize Assets, including Self Storage

  *During 2012, closed on $267.5 million of new Fund assets
  *Fund IV closed on its first three property acquisitions during the quarter
    for an aggregate purchase price of $151.2 million
  *During the quarter, Funds II and III sold 12 of 14 self-storage facilities
    for an aggregate sales price of $261.6 million. The remaining two assets
    are under contract for sale.
  *Fund II sold Canarsie Plaza, located in Brooklyn, New York for $124.0
    million during the quarter

Balance Sheet – Positioned for Growth with Low Leverage and Strong Liquidity

  *Core portfolio debt net of cash on hand (“Net Debt”) to EBITDA ratio of
    4.0x at December 31, 2012; 4.6x including pro-rata share of Opportunity
    Funds
  *Combined Net Debt to total equity and debt capitalization (“Total Market
    Capitalization”) of 22% at December 31, 2012
  *Raised $227.3 million of net equity proceeds during 2012 to fund
    acquisitions, including $128.6 million during the fourth quarter
  *Subsequent to year-end, closed on a new $150 million unsecured line of
    credit

Fourth Quarter and Full Year 2012 Operating Results

FFO and Net Income from Continuing Operations for the quarter ended December
31, 2012 were $14.7 million and $8.7 million, respectively, compared to $10.8
million and $3.5 million, respectively, for the quarter ended December 31,
2011. For the year ended December 31, 2012, FFO and Net Income from Continuing
Operations were $48.8 million and $24.0 million, respectively, compared to
$42.9 million and $18.7 million, respectively, for the year ended December 31,
2011.

During 2012, the National Association of Real Estate Investment Trusts
(“NAREIT”) issued a clarification to the definition of FFO whereby impairment
charges for depreciable real estate should be excluded in the calculation of
FFO. Accordingly, 2011 FFO has been increased to exclude an impairment charge
of $2.6 million, resulting in a change in 2011 FFO per share from $0.97 as
originally reported, to $1.04 as reflected below.

Earnings for the quarters and years ended December 31, 2012 and 2011, on a per
share basis, were as follows:

                                                
                 Quarters ended December 31,          Years ended December 31,
                 2012     2011     Variance       2012     2011     Variance
FFO per          $ 0.29     $ 0.25     $  0.04        $ 1.04     $ 1.04     $ --
share
EPS from
continuing       $ 0.17     $ 0.08     $  0.09        $ 0.51     $ 0.45     $ 0.06
operations
EPS from
discontinued     $ 0.25     $ 0.11     $  0.14        $ 0.34     $ 0.80     $ (0.46)
operations
EPS              $ 0.42     $ 0.19     $  0.23        $ 0.85     $ 1.25     $ (0.40)
                                                                            

The following significant items contributed to the above variances in EPS from
continuing operations:

                                                      
                                                         Variance

                                                         2012 v. 2011
                                                         Quarter    Year
Income from 2011/2012 acquisitions and redevelopment     $ 0.03       $ 0.11
projects
2011 additional mortgage interest income                   (0.01)       (0.11)
2012 lower mortgage interest expense                       0.03         0.09
2011 gain on extinguishment of debt                        --           (0.04)
Gain on involuntary conversion of asset                    0.05         0.05
Acquisition costs                                          (0.01)       (0.03)
Other items, net                                          --          (0.01)
Total variance                                           $ 0.09       $ 0.06
                                                                      

EPS from discontinued operations of $0.34 for the year ended December 31, 2012
and $0.80 for the year ended December 31, 2011 were primarily attributable to
net gains on sales of properties.

Core Portfolio – Strong Operating Results; Exceeds 2012 Acquisition Goal by
Closing on $224 Million of Street and High-Density Locations

Acadia’s core portfolio (“Core Portfolio”) is comprised of properties that are
owned in whole or in part by Acadia outside of its opportunity funds (the
“Funds”).

Occupancy and Same-Store NOI

At December 31, 2012, Acadia’s Core Portfolio occupancy was 94.2%, up 130
basis points from September 30, 2012. Including space currently leased but not
yet occupied, the Core Portfolio is 94.4% leased.

Core Portfolio same-store NOI increased 7.6% and 3.7%, respectively, for the
fourth quarter and full year 2012 compared to 2011. Excluding the impact of
the Re-anchoring Activities as defined below, same-store NOI increased 2.0%
and 2.9%, respectively, for these periods.

Rent Spreads on New and Renewal Leases

Year-to-date through December 31, 2012, the Company realized an increase in
average rents of 6.2% on 315,000 square feet of executed new and renewal
leases in its Core Portfolio. Excluding the effect of the straight-lining of
rents, the Company experienced a decrease of 0.9% in average rents in its Core
Portfolio.

Core Portfolio Anchor Recycling

Acadia previously announced three key re-anchoring initiatives at the
Bloomfield Town Square, located in Bloomfield Hills, Michigan, and two former
A&P supermarkets located in the New York metropolitan area (collectively, the
“Re-anchoring Activities”). Earlier during 2012, the Company completed the
Bloomfield Hills re-anchoring with the opening of a Dick’s Sporting Goods,
Ulta and Five Below at the center. During the fourth quarter, LA Fitness
opened for business in 45,000 square feet at the Branch Plaza, replacing the
majority of space previously occupied by one of the A&P supermarkets. The
re-anchoring of the other A&P space at the Crossroads Shopping Center is
anticipated to be completed during the second half of 2013.

Acquisition Activity – Investing in Urban/Street Retail and High-Density
Markets

During the year ended 2012, Acadia acquired a total of 24 Core Portfolio
properties for $224.3 million, including the previously announced $101.6
million fourth quarter acquisitions of the following 13 properties:

  *Bloomfield, New Jersey – Acadia acquired a 129,000 square foot stand-alone
    Home Depot located in Bloomfield, New Jersey for $12.5 million. Situated
    in Northern New Jersey, the property is supported by a population in
    excess of 300,000 within three miles of the property.
  *Connecticut Avenue NW, Washington, D.C. – The Company acquired a 42,000
    square foot, two property portfolio located in Washington, D.C., within
    walking distance of Dupont Circle for $23.2 million.
  *Main Street, Westport, Connecticut – Acadia completed the acquisition of
    181-185 Main Street in Westport, Connecticut for $14.2 million. Westport
    is considered one of Fairfield County’s affluent “Gold Coast” towns and
    this property is located at the northernmost anchor of Westport’s Main
    Street shopping district.
  *639 West Diversey Parkway, Chicago, Illinois – Acadia, acquired a 22,000
    square foot, two-level property located in the Lincoln Park section of
    Chicago for $10.7 million including the assumption of $4.4 million of
    debt. This strategic acquisition now provides Acadia with two blocks of
    contiguous ownership on the south side of West Diversey Parkway.
  *Street Retail Portfolio, Chicago, Illinois – Acadia completed the
    acquisition of eight street retail properties for $41.1 million. These
    properties represent the last of the previously announced, 18-property
    portfolio within Chicago’s key street-retail markets.

Acadia also has a current acquisition pipeline of $86.6 million under
contract, which is subject to certain closing conditions and, as such, no
assurance can be given that closing will be successfully completed.

Investments in Notes Receivable

During the fourth quarter, Acadia invested an aggregate $74.1 million in notes
receivable, of which $43.3 million was secured by first mortgages on
properties located in New York City and Chicago.

Fund Platform – 2012 Year-to-date Acquisitions Totaling $267.5 Million - Fund
IV Closes Initial Acquisitions; Fund II and Fund III Monetize Self-Storage and
Other Assets

Fund IV Acquisitions

As previously announced, Acadia completed the closing of Acadia Strategic
Opportunity Fund IV LLC (“Fund IV”), which received total capital commitments
of $540.6 million, including Acadia’s share of $125.0 million, or 23%. This is
the fourth in a series of institutional funds dedicated to making
opportunistic and value-add investments in retail real estate. With leverage,
Fund IV has up to $1.5 billion of buying power. During the fourth quarter,
Fund IV closed on its first three acquisitions for an aggregate $151.2 million
as follows:

  *Lincoln Road, Florida – Fund IV, in partnership with Terranova
    Corporation, acquired a 54,400 square foot, three-property portfolio on
    Lincoln Road in Miami Beach, Florida for $139.0 million. Acadia, through
    Fund III, is also partners with Terranova Corporation in its 2011
    acquisition of the three-property, 60,700 square foot, portfolio located
    on Lincoln Road and Lincoln Lane.
  *Catonsville, Maryland – Fund IV, in partnership with MCB Holdings,
    acquired a 58,000 square foot, single-tenant property located in
    Catonsville, Maryland for $4.7 million. Acadia, through Fund III,
    previously partnered with MCB Holdings on three other acquisitions located
    in the Baltimore metropolitan area.
  *210 Bowery, Manhattan – Fund IV also acquired a 9,200 square foot,
    single-tenant property located at 210 Bowery in Manhattan for $7.5
    million.

Storage Post Portfolio Disposition

During December 2012, as previously announced, subsidiaries of Funds II and
III sold 12 of their combined 14 property self-storage portfolio for an
aggregate $261.6 million. The Funds combined investment in these 12 assets
aggregated approximately $230 million including disposition costs. The
remaining two properties, which also include the retail component of Fund II’s
Liberty Avenue property in Ozone Park, Queens, are under contract for sale at
an aggregate price of $32.3 million.

Other Fund II Disposition

During the quarter, Fund II sold Canarsie Plaza, located in Brooklyn, New
York, for $124.0 million. During 2007, Fund II had acquired this property,
which was a vacant warehouse building and subsequently developed it into a
BJ’s Wholesale Club anchored shopping center. Fund II’s investment in this
property, inclusive of disposition costs and net of $24.5 million of lease
termination income, was approximately $98 million.

Balance Sheet – Positioned for Growth with Low Leverage and Strong Liquidity;
Established New Unsecured Line

Subsequent to year-end, Acadia closed on a new unsecured line of credit,
replacing its existing $64.5 million secured line. The current availability of
up to $150 million under the facility can be increased to $300 million based
on achieving certain thresholds. Interest is based on levels of leverage
starting with a rate of LIBOR plus 155 basis points.

In connection with the above Core Portfolio acquisitions and Acadia’s pro-rata
share of Fund acquisitions, during the fourth quarter, the Company issued 1.7
million Common Shares under its ATM program, and in a separate transaction,
sold 3.5 million Common Shares, for aggregate net proceeds of $128.6 million.

Acadia continues to maintain a solid balance sheet with available liquidity
and low leverage as evidenced by the following as of December 31, 2012:

  *The Company had total liquidity of $118.4 million, including $53.9 million
    of cash on hand and $64.5 million available under an existing line of
    credit, excluding the Funds’ cash and credit facilities. As previously
    discussed, this existing line was replaced with a $150 million unsecured
    facility subsequent to year-end.
  *Core Portfolio Net Debt to EBITDA ratio of 4.0x
  *Including the Company’s Core Portfolio debt and pro-rata share of the
    Company’s Fund debt (“Combined”), a Net Debt to EBITDA ratio of 4.6x
  *Combined Net Debt to Total Market Capitalization of 22%
  *Core Portfolio fixed-charge coverage ratio of 3.7 to 1 and a Combined
    fixed-charge coverage ratio of 3.3 to 1

Outlook - Earnings Guidance for 2013

The Company forecasts its 2013 annual FFO will range from $1.17 to $1.25 per
share and 2013 EPS from $0.66 to $0.71. The following table summarizes
management’s 2013 guidance (dollars in millions, except per share amounts):

                                                                 
                                            2013                        2012
                                            Low        High       Actual
Core and pro-rata share of Funds            $ 66.5     $ 70.5       $ 47.6
portfolio income
Asset and property management fee             14.5         15.0         16.3
income, net of taxes
Transactional fee income, net of taxes        6.5          7.0          6.8
Promote income from Funds, RCP Venture
and
other income, net of taxes                    1.0          1.5          1.5
General and administrative expense           (24.5)    (24.0)    (23.4)
FFO                                         $ 64.0     $ 70.0     $ 48.8
FFO per share                               $ 1.17     $ 1.25     $ 1.04
                                                                      

The following is a reconciliation of the calculation of forecasted earnings
per diluted share and FFO per diluted share:

                                                                   
Guidance Range for 2013                                      Low      High
Earnings per share                                           $ 0.66     $ 0.71
Depreciation of real estate and amortization of leasing
costs:
Wholly owned and consolidated partnerships                   0.46       0.48
Unconsolidated partnerships                                  0.04       0.05
Noncontrolling interest in Operating Partnership             0.01     0.01
FFO per share                                                $ 1.17   $ 1.25
                                                                        

Forecasted new Core Portfolio and Fund investments are anticipated to be key
drivers of 2013 earnings growth. In addition, the Company is assuming an
increase in same-store NOI for the Core Portfolio between 2% and 3% for the
year. This forecast also includes earnings dilution as a result of Fund
monetization activities completed during 2012 and anticipated during 2013.
Management will discuss its 2013 earnings guidance and related assumptions in
further detail on its scheduled year-end investor conference call.

Management Comments

“During 2012, our team successfully navigated economic and retailing
crosscurrents along the path to completing $1.0 billion of transactional
activity across our dual – core and fund – platforms,” stated Kenneth F.
Bernstein, President and CEO of Acadia Realty Trust. “Our core acquisition
activity, which emphasizes urban/street retail, continues to not only
strengthen our portfolio, but also position it to meet the realities of the
new multi-channel retailing environment. With respect to our fund platform,
last year, we were active on multiple fronts: acquiring $267 million of new
opportunistic/value-add investments, profitably monetizing $446 million of
stabilized investments, and successfully raising our fourth institutional
fund, which we capitalized with $1.5 billion of discretionary buying power, on
a levered basis. It was a productive year, during which we created value for
all of our stakeholders.”

Investor Conference Call

Management will conduct a conference call on Wednesday, February 6, 2013 at
12:00 PM ET to review the Company's earnings and operating results. The live
conference call can be accessed by dialing 888-771-4371. The pass code is
“34037331” or “Acadia Realty”. 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 888-843-7419, and the passcode will be “34037331#”. The
phone replay will be available through Wednesday, February 13, 2013.

About Acadia Realty Trust

Acadia Realty Trust, a fully-integrated equity real estate investment trust,
is focused on the acquisition, ownership, management and redevelopment of
high-quality retail properties and urban/infill mixed-use properties with a
strong retail component located primarily in high-barrier-to-entry,
densely-populated metropolitan areas along the East Coast and in Chicago.
Acadia owns, or has an ownership interest in, these properties through its
core portfolio and its opportunistic/value-add investment funds. Additional
information may be found on the Company’s website at www.acadiarealty.com.

Certain matters in this press release may constitute forward-looking
statements within the meaning of federal securities law and as such may
involve known and unknown risks, uncertainties and other factors that 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. These forward-looking
statements include statements regarding Acadia’s future financial results and
its ability to capitalize on potential opportunities arising from continued
economic uncertainty. Factors that could cause the Company’s forward-looking
statements to differ from its future results include, but are not limited to,
those discussed under the headings “Risk Factors” and “Management's Discussion
and Analysis of Financial Condition and Results of Operations” in the
Company’s most recent annual report on Form 10-K filed with the SEC on
February 28, 2012 (“Form 10-K”) and other periodic reports filed with the SEC,
including risks related to: (i) the current global financial environment and
its effect on retail tenants; (ii) the Company’s reliance on revenues derived
from major tenants; (iii) the Company’s limited control over joint venture
investments; (iv) the Company’s partnership structure; (v) real estate and the
geographic concentration of the Company’s properties; (vi) market interest
rates; (vii) leverage; (viii) liability for environmental matters; (ix) the
Company’s growth strategy; (x) the Company’s status as a REIT; (xi) uninsured
losses and (xii) the loss of key executives. Copies of the Form 10-K and the
other periodic reports Acadia files with the SEC are available on the
Company’s website at www.acadiarealty.com. Any forward-looking statements in
this press release speak only as of the date hereof. 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 or change in events,
conditions or circumstances on which any such statement is based.

                        (Financial Highlights Follow)

                                                
ACADIA REALTY TRUST AND SUBSIDIARIES

Financial Highlights ^1

For the Quarters and Years ended December 31, 2012 and 2011

(dollars and Common Shares in thousands, except per share data)
                                                     
                         For the Quarters ended      For the Years ended
                         December 31,                December 31,
Revenues                 2012        2011          2012         2011
                                                                    
Minimum rents            $ 27,161      $ 20,434      $ 99,280       $ 79,779
Percentage rents           69            75            417            361
Mortgage interest          1,863         1,936         7,879          11,429
income
Expense                    7,516         5,727         24,385         21,141
reimbursements
Other property             243           104           1,009          694
income
Management fee            289          508          1,455         1,674
income
Total revenues            37,141       28,784       134,425       115,078
Operating expenses
Property operating         8,540         4,783         25,889         18,968
Real estate taxes          4,862         3,984         18,811         15,320
General and                4,605         5,935         21,532         23,066
administrative
Reserve for notes          405           --            405            --
receivable
Depreciation and          9,117        6,663        32,931        25,672
amortization
Total operating           27,529       21,365       99,568        83,026
expenses
                                                                    
Operating income           9,612         7,419         34,857         32,052
                                                                    
Equity in (loss)
earnings of                (750)         (1,470)       1,579          1,555
unconsolidated
affiliates
Other interest             37            57            148            276
income
Gain on involuntary        2,368         --            2,368          --
conversion of asset
Interest expense and       (7,061)       (7,259)       (28,768)       (29,632)
other finance costs
(Loss) gain on
extinguishment of         (198)        --           (198)         1,268
debt
Income (loss) from
continuing                 4,008         (1,253)       9,986          5,519
operations before
income taxes
Income tax benefit        1,698        (467)        568           (461)
(provision)
Income (loss) from
continuing                5,706        (1,720)      10,554        5,058
operations
                                                                      

                                                
ACADIA REALTY TRUST AND SUBSIDIARIES

Financial Highlights ^1

For the Quarters and Years ended December 31, 2012 and 2011

(dollars and Common Shares in thousands, except per share data)
                                                     
                       For the Quarters ended        For the Years ended
                       December 31,                  December 31,
                       2012         2011           2012         2011
Discontinued
operations:
Operating income
from discontinued        3,167          1,763          10,720         8,752
operations
Loss on debt             (2,541)        --             (2,541)        --
extinguishment
Impairment of            --             --             --             (6,925)
asset
Gain on sale of         62,618        14,332        71,203        46,830
property
Income from
discontinued            63,244        16,095        79,382        48,657
operations
Net income              68,950        14,375        89,936        53,715
Loss (income)
attributable to
noncontrolling
interests:
Continuing               2,976          5,182          13,480         13,655
operations
Discontinued            (50,650)      (11,670)      (63,710)      (15,815)
operations
Net loss (income)
attributable to
noncontrolling
interests               (47,674)      (6,488)       (50,230)      (2,160)
                                                                    
Net income
attributable to        $ 21,276       $ 7,887        $ 39,706       $ 51,555
Common
Shareholders
                                                                    
Supplemental
Information
Income from
continuing
operations
attributable to
Common                 $ 8,682        $ 3,462        $ 24,034       $ 18,713
Shareholders
Income from
discontinued
operations
attributable to
Common                  12,594        4,425         15,672        32,842
Shareholders
Net income
attributable to        $ 21,276       $ 7,887        $ 39,706       $ 51,555
Common
Shareholders
                                                                    
Net income
attributable to
Common
Shareholders per
Common Share –
Basic
Net income per
Common Share –
Continuing
operations             $ 0.17         $ 0.08         $ 0.51         $ 0.45
Net income per
Common Share –
Discontinued
operations              0.25          0.11          0.34          0.80
Net income per         $ 0.42         $ 0.19         $ 0.85         $ 1.25
Common Share
Weighted average        50,047        41,785        45,854        40,697
Common Shares
                                                                    
Net income
attributable to
Common
Shareholders per
Common Share –
Diluted ^2
Net income per
Common Share –
Continuing
operations             $ 0.17         $ 0.08         $ 0.51         $ 0.45
Net income per
Common Share –
Discontinued
operations              0.25          0.11          0.34          0.80
Net income per         $ 0.42         $ 0.19         $ 0.85         $ 1.25
Common Share
Weighted average        50,583        42,066        46,335        40,986
Common Shares

                                                
ACADIA REALTY TRUST AND SUBSIDIARIES

Financial Highlights ^1

For the Quarters and Years ended December 31, 2012 and 2011

(dollars and Common Shares in thousands, except per share data)
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS ^3
                                                     
                        For the Quarters ended       For the Years ended
                        December 31,                 December 31,
                        2012         2011          2012         2011
                                                                    
                                                                    
Net income
attributable to         $ 21,276       $ 7,887       $ 39,706       $ 51,555
Common Shareholders
                                                                    
Depreciation of
real estate and
amortization of
leasing costs
(net of
noncontrolling
interests' share):
Consolidated              6,782          4,692         23,090         18,274
affiliates
Unconsolidated            426            477           1,581          1,549
affiliates
Gain on sale and
involuntary
conversion of asset
(net of
noncontrolling
interests' share):
Consolidated              (14,060)       (2,356)       (15,451)       (31,716)
affiliates
Unconsolidated            --             --            (609)          --
affiliates
Impairment of asset       --             --            --             2,616
^3
Income attributable
to noncontrolling
interests’ in
Operating                 241            99            510            635
Partnership
Distributions –          4             5            18            18
Preferred OP Units
Funds from              $ 14,669       $ 10,804      $ 48,845       $ 42,931
operations
Funds from
operations per
share – Diluted
Weighted average
Common Shares and        51,150        42,559       46,940        41,467
OP Units ^4
Funds from
operations, per         $ 0.29         $ 0.25        $ 1.04         $ 1.04
share
                                                                    

                                                
ACADIA REALTY TRUST AND SUBSIDIARIES

Financial Highlights ^1

For the Quarters and Years ended December 31, 2012 and 2011

(dollars in thousands)
RECONCILIATION OF OPERATING INCOME TO NET PROPERTY
OPERATING INCOME (“NOI”) ^3
                                                     
                         For the Quarters ended      For the Years ended
                         December 31,                December 31,
                         2012        2011          2012         2011
                                                                    
Operating income         $ 9,612       $ 7,419       $ 34,857       $ 32,052
                                                                    
Add back:
General and                4,605         5,935         21,532         23,066
administrative
Depreciation and           9,117         6,663         32,931         25,672
amortization
Impairment of asset        405           --            405            --
                                                                    
Less:
Management fee             (289)         (508)         (1,455)        (1,674)
income
Mortgage interest          (1,863)       (1,936)       (7,879)        (11,429)
income
Straight line rent
and other                 (2,549)      (1,738)      (10,261)      (6,644)
adjustments
                                                                    
Consolidated NOI          19,038       15,835       70,130        61,043
                                                                    
Noncontrolling            (2,546)      (2,174)      (9,275)       (8,875)
interest in NOI
Pro-rata share of          16,492        13,661        60,855         52,168
NOI
Operating
Partnerships’             (1,947)      (2,184)      (7,274)       (7,573)
interest in
Opportunity Funds
NOI – Core Portfolio     $ 14,545      $ 11,477      $ 53,581       $ 44,595
                                                                    

                                       
                           
SELECTED BALANCE SHEET INFORMATION
                              As of
                              December 31,   December 31,
                              2012             2011
                              (dollars in thousands)
                                            
Cash and cash equivalents     $  91,813        $  89,812
Rental property, at cost         1,249,140        880,377
Total assets                     1,908,440        1,653,319
Notes payable                    727,978          648,669
Total liabilities                838,184          884,010
                                                  

                     ACADIA REALTY TRUST AND SUBSIDIARIES
                             Financial Highlights
         For the Quarters and Years ended December 31, 2012 and 2011
       (dollars and Common Shares in thousands, except per share data)

Notes:

^1 For additional information and analysis concerning the Company’s results of
operations, reference is made to the Company’s Quarterly Supplemental
Disclosure furnished on Form 8-K to the SEC and included on the Company’s
website at www.acadiarealty.com.

^2 Reflects the potential dilution that could occur if securities or other
contracts to issue Common Shares were exercised or converted into Common
Shares. The effect of the conversion of Common OP Units is not reflected in
the above table as they are exchangeable for Common Shares on a one-for-one
basis. The income allocable to such units is allocated on the same basis and
reflected as noncontrolling interests in the consolidated financial
statements. As such, the assumed conversion of these units would have no net
impact on the determination of diluted earnings per share.

^3 The Company considers funds from operations (“FFO”) as defined by the
National Association of Real Estate Investment Trusts (“NAREIT”) and net
property operating income (“NOI”) to be appropriate supplemental disclosures
of operating performance for an equity REIT due to their widespread acceptance
and use within the REIT and analyst communities. FFO and NOI are presented to
assist investors in analyzing the performance of the Company. They are helpful
as they exclude various items included in net income that are not indicative
of the operating performance, such as gains (losses) from sales of depreciated
property, depreciation and amortization, and impairment of depreciable real
estate. In addition, NOI excludes interest expense. The Company’s method of
calculating FFO and NOI 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 (“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. Consistent with the NAREIT definition,
the Company defines FFO as net income (computed in accordance with GAAP),
excluding gains (losses) from sales of depreciated property, plus depreciation
and amortization, and after adjustments for unconsolidated partnerships and
joint ventures. During 2012, NAREIT issued a clarification to the definition
of FFO whereby impairment charges for depreciable real estate are to be
excluded in the calculation of FFO. Accordingly, 2011 FFO has been restated to
exclude an impairment charge of $2.6 million.

^4 In addition to the weighted average Common Shares outstanding, basic and
diluted FFO also assume full conversion of a weighted average 566 and 493 OP
Units into Common Shares for the quarters ended December 31, 2012 and 2011,
respectively and 604 and 480 OP Units into Common Shares for the years ended
December 31, 2012 and 2011, respectively. Diluted FFO also includes the
assumed conversion of Preferred OP Units into 25 Common Shares for each of the
quarters and years ended December 31, 2012 and 2011. In addition, diluted FFO
also includes the effect of 511 and 256 employee share options, restricted
share units and LTIP units for the quarters ended December 31, 2012 and 2011,
respectively and 456 and 264 employee share options, restricted share units
and LTIP units for the years ended December 31, 2012 and 2011, respectively.

Contact:

Acadia Realty Trust
Jon Grisham, 914-288-8100
 
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