AKR Stock: Acadia Realty Trust Dividend vs FFO As Adjusted, Street Retail and Funds (2026)

Three FFOs and a $0.20 dividend

Acadia publishes three per-share earnings measures that diverge more than most REITs' do. NAREIT FFO is net income with real estate depreciation, impairments and gains on sales added back or removed. FFO As Adjusted starts there and strips what management calls “unusual items.” AFFO also subtracts straight-line rent, leasing commissions, tenant improvements and maintenance capital. The dividend has not moved since the first quarter of 2025, so the payout ratio moves only with the denominator.

Net income does not cover the dividend, and FFO adds back depreciation by design. GAAP earnings were $0.05 a share in Q2 2026 against the $0.20 dividend; the first-quarter figure of $0.22 included gains on property sales. Dividends and distributions declared were $29.1 million in Q2 against $44.7 million of FFO As Adjusted and $37.7 million of AFFO. AFFO is lower because it deducts $3.8 million of tenant improvements, $1.8 million of leasing commissions and $1.0 million of maintenance capital in the quarter, while adding back $3.0 million of stock compensation. In the half the stock compensation add-back was $9.2 million, which includes the retirement-related acceleration of unvested awards (the Q1 release puts that charge in general and administrative expense at about $4.1 million).

The share count is part of the story. FFO per share is computed on shares plus operating partnership units, 142.4 million in Q2 2026, up from 136.6 million for 2025 and 116.1 million for 2024. FFO As Adjusted in dollars was 15.4% higher than a year earlier in Q2 while the diluted count rose 2.5% (our arithmetic); over the half the figures were 17.2% and 5.1%. The company has been issuing stock to buy property, and the section on equity below shows how much has been sold but not yet delivered.

At the June 30, 2026 share price of $20.91, the supplemental's own market-capitalization figure, a $0.80 annual dividend is a 3.8% yield (our arithmetic). The price is the only market figure on this page; every other number comes from filings.

Why 2025 went from $1.32 to $1.14

In the Q4 2025 release of February 10, 2026 Acadia told holders that “beginning in 2026” it would report a new supplemental measure, FFO As Adjusted, and gave 2025 on both bases. The definition in the 2026 release says it “begins with the NAREIT definition of FFO” and removes “unusual items including charges, income and gains that management believes are not comparable.” The old measure removed unrealized gains and losses on Albertsons but kept realized ones. The bridge for 2025:

The three differences add to $23.98 million, which is $0.18 a share on 136.6 million shares and units (our arithmetic) and equals the gap between $180.0 million and $156.1 million. The 10-K says Acadia sold 752,112 Albertsons shares in 2025 for net proceeds of $14.5 million and that “as of December 31, 2025, the Company no longer held any shares of Albertsons.” Realized gains on that stake were $5.4 million, $4.4 million and $4.7 million in the last three quarters of 2025, about $0.03 a share each, so the old measure carried a recurring item that had a fixed end. The new measure is the more conservative, and it is the one in 2026 guidance. The caution runs the other way: because the NAREIT definition and the company’s own adjustments are decided by management, FFO As Adjusted can still move with what it calls unusual. In Q1 2026 $4.4 million of transaction and other expenses was added back; the company's footnote says that line includes employee retirement costs.

Guidance: two raises and a flat second half

The company’s chief executive described the quarter as “exceptional” and said the guidance reflects “10% year-over-year growth at the midpoint.” Our arithmetic gives 9.6% at the $1.25 midpoint against the restated $1.14. If the dividend stays at $0.20 a quarter, the full-year payout at that midpoint would be 64.0% (our arithmetic, not a company statement). Acadia’s February assumptions, the last full list the filings give, were investment-management fees of $23 million to $26 million, structured-finance interest income of $16 million to $18 million, recurring general and administrative expense of $44 million to $46 million and net interest expense of $68 million to $70 million before settling the forward equity contracts. The structured-finance income line is the one the default described below puts at risk.

Two businesses in one ticker: REIT Portfolio and Investment Management

Through the Q2 2025 release Acadia called its owned retail the “Core Portfolio.” From the Q3 2025 release it is the “REIT Portfolio,” and the other half of the company is “Investment Management”: three older opportunity funds (III, IV and V) and a set of newer co-investment vehicles in which Acadia holds 5% to 20%. The same ticker pays for both, and the mix matters because the fund businesses are finite-life and have paid fees and promotes rather than recurring rent.

Fund II is gone as a fund: in June 2026 Acadia bought out the other investors’ interests in City Point, the Brooklyn property that is its last asset, and raised its ownership from 80% to 100%, for $67.1 million of which $58.5 million was assuming their share of the City Point loan and accrued interest. Fund IV has returned 43.6% of the capital contributed and is not in a promote position; Fund V has returned 88.0%. All three have closed their investment periods, which means the funds are selling, not buying. In the first half of 2026 the funds disposed of about $211 million of property and recapitalized $504 million, according to the Q2 release, which says the Fund V recapitalization and dispositions produced a weighted average gross equity multiple of approximately 1.9x. New Investment Management acquisitions sit in vehicles in which Acadia owns 20%, such as Shops at Skyview in Queens ($424.1 million, January 2026, Acadia’s share $84.8 million).

Street retail: same-property NOI, occupancy and the spread on five leases

Full-year 2025 same-property growth was 5.7% and the guidance for 2026 is 5% to 9%, unchanged since February. Q2 2026 same-property NOI was $39.6 million against $36.4 million, with minimum rents up 8.4%. The company discloses same-property NOI separately for street retail, but the label changes between releases (“street retail” in Q3 2025 and Q2 2026, “street and urban” in the others), so treat the middle column as the company’s own wording rather than one consistent series.

The 91% spread is a small sample. Acadia’s release says conforming cash spreads on new leases were 91% in Q2 2026, and 78% including renewals. The supplemental shows what stands behind it:

Five leases averaging 1,923 square feet (our arithmetic) at $346 a foot compare with $40.19 a foot for the whole REIT Portfolio, which points to small, high-rent shops (our reading; the supplemental does not name the leases). The spread is real, but it is a signal about a handful of spaces, not a portfolio average. The half-year figure over 201,132 square feet, 25.7% in cash terms, is the more representative number, although 162,160 of those square feet were renewals signed in the first quarter.

Total economic occupancy rose from 92.2% at June 30, 2025 to 94.4%, and the street and urban figure from 86.7% to 91.4% over the same twelve months. The signed-not-opened pipeline, rent signed but not yet paying, grew from $10.5 million of annual base rent at March 31, 2026 to $16.5 million at June 30.

$105 million of structured-finance items

Acadia’s structured financing segment holds notes receivable, mostly preferred equity and mezzanine positions on retail properties. At June 30, 2026 principal was $230.3 million at a stated rate of 7.88%, with an allowance for credit losses of $2.2 million. Three items stand out in the 10-Q and supplemental:

The 10-Q says the largest position was current “through the use of interest reserves established in connection with a prior restructuring,” and then: “The remaining interest reserves were insufficient to fund the full interest payment due in July 2026, causing a default, and the Company is currently evaluating a restructuring of the investment with the borrowers.” It is classified as a preferred equity investment in an unconsolidated variable interest entity with a carrying value of $82.9 million, which the filing calls the company’s “maximum exposure to loss.” The filings do not name the property. The February guidance assumed $16 million to $18 million of structured-finance interest income for the year, and the filings do not say how much of it comes from the $82.5 million position. Meanwhile in July the segment originated a new $54.0 million note.

Buying streets with forward equity: acquisitions and the share count

Acadia has paid for its street-retail purchases mostly with stock sold on a forward basis. In a forward sale, the shares are borrowed and sold to the market now; Acadia delivers shares and receives cash later, within one year, so the proceeds and the dilution arrive after the announcement.

The unsettled forwards are 12.4% of the shares and units outstanding (our arithmetic). When they settle, Acadia receives about $369 million and the count rises from 143.8 million to roughly 161.5 million (our arithmetic), so FFO As Adjusted per share has to rise by the return on the acquisitions and the Henderson Avenue development in Dallas to hold even. Guidance does not reflect the interest saving from settling: the February assumptions say interest expense “does not reflect the potential reduction in interest expense that would result from settling the forward equity contracts.” For the other side of the listed-REIT equity story, see how Realty Income’s dividend compares with AFFO and lease expirations.

Debt: 5.1x after the forwards, 6.6x before

The ratio was 5.5x at June 30, 2025, 5.0x at September 30, 2025, 4.9x at December 31, 2025 and 5.5x at March 31, 2026, according to the supplemental. Fixed-charge coverage was 3.8x in Q2. About 81.8% of pro-rata debt is fixed after $1.06 billion of interest-rate swaps (our arithmetic), at an adjusted rate of 4.3%. In April 2026 Acadia replaced its credit facility with a $1.425 billion one: a $525.0 million revolver to April 2030 with two six-month extensions, term loans of $512.5 million and $137.5 million to April 2031, and a $250.0 million term loan to May 2030, with an accordion to $2.0 billion. At June 30 the revolver had $43.3 million drawn.

The company counts “no significant REIT Portfolio debt maturities until 2029” and shows REIT debt maturing as extended at 2.4%, 2.5% and 7.1% in 2026, 2027 and 2028. Two loans come due in late 2026: a $102.0 million Georgetown loan at SOFR plus 1.55% (Acadia’s share $69.4 million) with two 12-month extensions, and a $30.0 million loan on 840 N. Michigan Avenue with no extension option. Debt on the funds is mostly floating and matures through 2031.

Tenants and expirations

Target is the largest tenant by rent at 5.6% of base rent, followed by J. Crew Group (3.2%), Lululemon (2.5%), Richemont (2.1%), Dick’s Sporting Goods (1.7%) and TJX (1.6%). The twenty largest multi-location tenants together are 33.1% of base rent, and the company does not list tenants with a single location. The street tenants, 223 leases covering 993,178 square feet, average $113.05 a foot in base rent at expiration; the 62 anchor leases, 2.45 million square feet, average $15.60.

For a mall landlord's version of this analysis, see our page on Simon Property Group’s dividend against FFO, occupancy and debt. The two companies use different measures: Simon guides on Real Estate FFO, Acadia on FFO As Adjusted, and the occupancy definitions differ, so the percentages are not directly comparable.

What has been filed since the last 10-Q, and what comes on November 2, 2026

The last periodic report is the Form 10-Q filed on July 29, 2026 for the quarter ended June 30, 2026, a day after the earnings 8-K, which has been the pattern (October 28 and 29 in 2025). EDGAR shows no 8-K after July 28; the only later filings are Schedule 13G amendments, the latest on August 14. The company’s October 13 press release, which is not an SEC filing, says it will release third-quarter results before the market opens on Monday, November 2, 2026, with a call at 11:00 a.m. Eastern. One earlier 8-K is worth knowing about: on May 13, 2026 Acadia refiled the Q1 supplemental to correct page 22, where the REIT pre-stabilized costs to date had been shown as 1,032,481 (thousand) instead of 337,937, and the total REIT costs to date as 1,556,881 instead of 866,437. The press release was not affected. The changes are in a cost table, not in earnings, but they show that the supplemental is not audited and is worth reading with the 10-Q beside it.

What a holder or reader can do with this

This page is analysis of public documents, not investment, legal or tax advice. Things the filings let you check yourself:

• Pick the denominator and say which. The dividend is 65% of FFO As Adjusted for Q2, 66% for the half and 77% of AFFO; against NAREIT FFO it was 77% in Q1 and 67% in Q2 (company-reported). Use the one that matches your question.
• Do not compare 2026 FFO with the old 2025 figure. The 2025 base is $1.14 on the new measure, not $1.32.
• Read street retail as two numbers. The same-property gain is a portfolio number; the 91% spread is five leases. The half-year spread is 25.7%.
• Add the forward shares to the count. Per-share growth has to absorb 17.8 million shares not yet issued.
• Watch the structured-finance line. $105.3 million of problem items against a $2.2 million allowance is the one place in the filings where credit risk and earnings meet.
• Listed versus non-traded. If you are comparing a listed REIT such as this one with a non-traded REIT for income, see our comparison of non-traded and publicly traded REITs.

FAQ

All figures are from Acadia Realty Trust (SEC CIK 899629) filings read on EDGAR on October 17, 2026: Form 10-K for 2025 (accession 0001193125-26-051677); Form 10-Q for the quarters ended June 30, 2026 (0001193125-26-323776) and March 31, 2026 (0001193125-26-191611) and September 30, 2025 (0001193125-25-256341); earnings releases and supplemental information attached to Forms 8-K for Q2 2025 (0000950170-25-099653), Q3 2025 (0001193125-25-253607), Q4 2025 (0001193125-26-044722), Q1 2026 (0001193125-26-187104) and Q2 2026 (0001193125-26-321040); Forms 8-K of December 19, 2025 (0001193125-25-326893), February 6, 2026 (0001104659-26-011557), April 20, 2026 on the credit facility (0001104659-26-045244), May 13, 2026 (0001193125-26-221662) and June 12, 2026 on the forward offering (0001104659-26-073037). The November 2, 2026 earnings date and the third-quarter dividend come from company press releases of October 13 and August 2026 (Business Wire), which are not SEC filings; the $20.91 share price is the June 30, 2026 figure in the supplemental. Percentages of FFO As Adjusted marked as ours, the 2025 bridge total, share-count and forward-equity ratios, the net debt without the forward credit, the sum of structured-finance items, fixed-rate share and implied second-half guidance are our arithmetic from those rows; FFO, FFO As Adjusted, FFO Before Special Items, AFFO, same-property NOI and adjusted EBITDA are the company's own non-GAAP measures and definitions. This is analysis of public documents, not investment, legal or tax advice.