Investment Thesis
ACADIA demonstrates solid operational performance with 14.2% revenue growth and strong free cash flow generation (40.7% FCF margin), but concerning profitability deterioration with net income flat YoY despite revenue gains and EPS declining 47.4% signals operational leverage issues. The moderate leverage profile (0.84x debt/equity) and substantial asset base provide stability, though low ROE (0.8%) and ROA (0.3%) indicate capital deployment challenges typical of REITs in competitive markets.
AKR Strengths
- Strong revenue growth of 14.2% YoY demonstrates operational expansion
- Excellent free cash flow generation at 167.0M with 40.7% FCF margin provides capital flexibility
- Moderate debt-to-equity ratio of 0.84x maintains reasonable financial flexibility
- Substantial cash flow coverage supports dividend sustainability
AKR Risks
- Net income flat YoY despite 14.2% revenue growth indicates margin compression and operational inefficiency
- EPS declined 47.4% YoY suggesting significant dilution or earnings deterioration
- Very low ROE (0.8%) and ROA (0.3%) indicate poor capital efficiency and returns on deployed assets
- Operating margin of only 12% is thin for REIT sector, limiting downside protection
- 11 insider Form 4 filings in 90 days warrants monitoring for directional intent
Key Metrics to Watch
- Operating margin trend - expansion essential to justify revenue growth
- Net income growth trajectory - must recouple with revenue growth for sustainability
- Return on Equity and Assets - improvement critical for capital allocation quality
- Free cash flow stability and FCF margin maintenance
- Debt levels and refinancing activity given macro rate environment
AKR Financial Metrics
AKR Profitability Ratios
AKR Balance Sheet & Liquidity
AKR 5-Year Financial Trend
5-Year Trend Summary: ACADIA REALTY TRUST's revenue has grown significantly by 39% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.20 reflects profitable operations.
AKR Growth Metrics (YoY)
AKR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $81.4M | $7.0M | $-0.02 |
| Q2 2024 | $87.3M | $1.6M | $0.01 |
| Q1 2024 | $81.8M | -$6.9M | $0.03 |
| Q3 2023 | $79.9M | $8.5M | $-0.02 |
| Q2 2023 | $84.3M | $2.8M | $0.00 |
| Q1 2023 | $81.5M | $22.0M | $0.14 |
| Q3 2022 | $71.9M | $31.1M | $0.13 |
| Q2 2022 | $73.1M | $452.0K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AKR Capital Allocation
AKR SEC Filings
Access official SEC EDGAR filings for ACADIA REALTY TRUST (CIK: 0000899629)