Executive Summary

Q1 2025 delivered strong top-line and FFO: total revenues rose 14.6% year over year to $104.4M, GAAP diluted EPS was $0.01, and NAREIT FFO/share was $0.34, up from $0.28 in Q1 2024 .
Consensus vs. actual: revenue beat ($102.8M actual vs $90.7M consensus*) and NAREIT FFO/share beat ($0.34 actual vs $0.325*), while GAAP EPS missed ($0.004* vs $0.075*), reflecting non-cash change-in-control accounting and timing items (Albertsons unrealized gain inclusion policy) . Values retrieved from S&P Global.
Guidance raised for FY 2025 FFO and FFO Before Special Items; GAAP EPS guidance lowered on non-cash items (impairment and change-in-control) but operating trajectory intact; same-property NOI growth reaffirmed at 5–6% .
Street portfolio remains primary growth engine: same-property NOI +6.8% for street assets, 71% GAAP / 59% cash new lease spreads, and SNO pipeline increased to ~$8.9M (≈6% of ABR) .
Balance sheet and external growth catalysts: ~$373M YTD acquisitions, net debt/EBITDA 5.7x, dividend maintained at $0.20 per share (Q2 declaration) .

What Went Well and What Went Wrong

What Went Well

Street portfolio drove internal growth: street same-property NOI +6.8% in Q1; total same-property NOI +4.1% with full-year 5–6% reaffirmed .
Pricing power and leasing momentum: GAAP/cash new lease spreads of 71%/59% in Q1 (Georgetown M Street achieved 74% cash spreads on two leases); SNO pipeline rose to ~$8.9M ABR (≈6% of in-place rents) .
Accretive external growth and scale-building: ~$373M YTD acquisitions across SoHo, Williamsburg, Georgetown, and Flatiron/Union Square; strategic IM acquisition of Pinewood Square (FL) with planned pad spin-offs . CEO: “our street portfolio continues to be the key contributor to our internal growth…we continue to deploy capital in a disciplined manner” .

What Went Wrong

GAAP EPS optics pressured by non-cash and transactional items: Q1 net income/share $0.01 included ~$9.6M non-cash change-in-control charge related to Georgetown Renaissance remeasurement .
Core occupancy dipped sequentially: leased 95.5% (−30 bps) and occupied 91.7% (−140 bps) vs. 95.8%/93.1% at YE 2024, driven by an anticipated suburban anchor expiration; re-leased with commencement expected Q3 2025 .
Guidance for GAAP EPS lowered due to non-cash items (impairment and change-in-control), despite raising FFO guidance; realized gains/promotes range trimmed at the top end (0.11–0.14 from 0.11–0.15) .

Financial Results

Metric	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Total Revenues ($USD)	$91,356	$87,745	$93,334	$104,394
GAAP Diluted EPS ($)	$0.03	$0.07	$0.07	$0.01
NAREIT FFO / Share ($)	$0.28	$0.28	$0.30	$0.34
FFO Before Special Items / Share ($)	$0.33	$0.32	$0.32	$0.34

Operating KPIs (chronological):

Same-Property NOI Growth (%): Q3 2024: 5.9% ; Q4 2024: 5.7% ; Q1 2025: 4.1% .
Leasing Spreads (New Leases): Q1 2025 GAAP 71%, Cash 59% .
Leased/Occupied (Core Portfolio, period end): Q4 2024: 95.8% / 93.1% ; Q1 2025: 95.5% / 91.7% .
SNO Pipeline: Q4 2024: ~$7.7M ABR (~5.1% of in-place rents) ; Q1 2025: ~$8.9M ABR (~6%) .

Consensus vs. Actual (Q1 2025) — Values retrieved from S&P Global:

Metric	Consensus*	Actual
Revenue ($USD)	$90.7M*	$102.8M
GAAP Primary EPS ($)	$0.075*	$0.01
FFO / Share (REIT) ($)	$0.325*	$0.34

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Earnings / Share (GAAP)	FY 2025	$0.22–$0.27	$0.12–$0.16	Lowered
NAREIT FFO / Share	FY 2025	$1.19–$1.24	$1.22–$1.26	Raised
FFO Before Special Items / Share	FY 2025	$1.30–$1.39	$1.32–$1.39	Raised (mid-point)
Realized Gains & Promotes / Share	FY 2025	$0.11–$0.15	$0.11–$0.14	Lowered (top end)
Same-Property NOI Growth	FY 2025	5–6% (reaffirmed)	5–6% (reaffirmed)	Maintained
Dividend / Share (Quarterly)	Q2 2025	$0.20 (Q1 declared)	$0.20 (Q2 declared)	Maintained

Notes to guidance drivers: Revised GAAP EPS incorporates non-cash impairment ($0.01/share) and change-in-control ($0.08/share); unrealized mark-to-market gain (Albertsons) of $(0.01) reflected; share count effects from forward equity .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024 and Q4 2024)	Current Period (Q1 2025)	Trend
Street portfolio growth	Strong leasing spreads and SSS NOI growth; record acquisition/leasing volumes	Street same-property NOI +6.8%; scale in SoHo/Williamsburg/Georgetown; SNO +15% to ~$9M, >50% cash spreads on Georgetown leases	Positive, accelerating
Tariffs/macro & supply chain	Watching macro; buyers/sellers realistic; fewer “tourists” likely in street retail	Management sees policy-driven volatility; tenants remain focused on mission-critical locations; inflation can be tailwind if demand stable	Cautious but resilient
External growth pipeline	~$800M closed over 6–9 months; accretive targets; funding prefunded	~$370M YTD closed; off-market/buyouts; IM platform positioned for opportunistic deals	Sustained activity
Balance sheet & leverage	Net debt/EBITDA improved (5.6x Q3); expanded revolver	Net debt/EBITDA 5.7x; untapped revolver and forward equity dry powder	Stable, flexible
Consumer and tenant sales	Affluent consumer resilient; double-digit sales in key corridors	Double-digit YoY sales in SoHo, Gold Coast, Armitage, M Street; healthy occupancy costs	Positive

Management Commentary

CEO on internal growth and disciplined capital deployment: “Our street portfolio continues to be the key contributor to our internal growth…we continue to deploy capital in a disciplined manner, completing approximately $375 million year-to-date in accretive acquisitions” .
CFO on cadence and 2025/2026 drivers: targeting Q2 FFO $0.32–$0.34 and Q3/Q4 $0.34–$0.36 as acquisitions accrete and SNO commencements ramp; ~$9M core SNO ABR, ~$6M redevelopment SNO ABR, with ~$4M recognized in 2025 and $5M in 2026 .
SVP Leasing on corridor scale and demand: robust leasing pipeline (> $6M ABR in advanced negotiations), strong YoY sales across core streets, with notable leasing spreads and merchandising upgrades (e.g., Richemont brand in SoHo) .

Q&A Highlights

Tariffs/macro: Management frames recent volatility as policy-driven, not akin to GFC; expects fewer “tourists” in street buying; focus remains mission-critical corridors .
Leasing velocity: No noticeable slowdown post-April; tenants continue decisions, reflecting healthy margins and resilient affluent consumers .
Mark-to-market in Williamsburg: Market rents “multiples” above in-place ABR (~$123/psf cited in question), suggesting embedded uplift over time .
Investment management appetite: Institutional partners seek qualified retail operators; platform positioned to deploy high-teens IRR capital where appropriate .
Occupancy: Short-term dip driven by suburban anchor expiration already re-leased; year-end physical occupancy guide 94–95% .

Estimates Context

Revenue: $90.7M consensus* vs. $102.8M actual — beat. Values retrieved from S&P Global.
GAAP EPS: $0.075 consensus* vs. $0.01 actual — miss (non-cash change-in-control and timing items). Values retrieved from S&P Global.
FFO/share (REIT): $0.325 consensus* vs. $0.34 actual — beat. Values retrieved from S&P Global.
Analyst coverage count: EPS (5), revenue (3) for Q1 2025*. Values retrieved from S&P Global.

Key Takeaways for Investors

Street-led internal growth continues: outsized leasing spreads, double-digit street sales, and increased SNO underpin multi-year NOI growth (2025 5–6% reaffirmed; 2026 target 5%+ noted) .
Quality external growth at scale: ~$373M YTD core/IM acquisitions in must-have corridors (SoHo, Georgetown, Williamsburg, Flatiron), with favorable mark-to-market optionality .
Balance sheet optionality: Net debt/EBITDA 5.7x and untapped revolver/forward equity provide dry powder to navigate macro volatility and fund accretive deals .
Near-term trading lens: FFO beats vs. consensus and raised FFO guidance are positive catalysts; GAAP EPS optics reflect non-cash items rather than operating softness .
Occupancy trajectory: Temporary Q1 dip should reverse with Q3 commencements; watch H2 ramp as SNO flows through and suburban backfills start .
Watchlist items: Execution on >$6M ABR leasing in advanced stages, pad spin-offs at Pinewood Square, and continued corridor curation/upgrades (e.g., SoHo, M Street) .
Dividend: $0.20/share declared for Q2 2025 supports income thesis alongside improving FFO trajectory .

Additional Details and Data

Segment and KPI snapshot:

Core Portfolio: Core NOI $36.7M vs. $36.0M in Q1 2024; same-property revenues $47.6M, expenses $13.8M, same-property NOI $33.8M (+4.1%) .
Non-GAAP reconciliations: FFO Before Special Items $43.4M ($0.34/share); excludes unrealized holdings; no realized gains in Q1 2025; Whole Foods termination/rent payments (~$8.0M; $0.06/share) included in Net Income, NAREIT FFO and FFO Before Special Items; excluded from same-property NOI .
Balance sheet: Total assets $4.736B; consolidated debt $1.635B; total equity $2.763B; marketable securities $16.5M (Albertsons exposure) .
Debt profile: No significant core debt maturities until 2028; swap notional ~$884M, WA fixed SOFR ~3.0% .

Other relevant Q1 2025 press releases:

Quarterly dividend: Board declared $0.20 per share dividend payable July 15, 2025 (record date June 30, 2025) .

Prior quarters for trend:

Q4 2024: Revenues $93.3M; GAAP EPS $0.07; NAREIT FFO/share $0.30; FFO Before Special Items/share $0.32; same-property NOI +5.7%; dividend increased to $0.20 (Q1 2025) .
Q3 2024: Revenues $87.7M; GAAP EPS $0.07; NAREIT FFO/share $0.28; FFO Before Special Items/share $0.32; same-property NOI +5.9%; SNO ~$10M ABR (~7% of in-place rents) .

Earnings call quotes (attribution):

“We achieved 6.8% same-store growth from our street retail portfolio…signed new leases at cash spreads in excess of 50%” (CFO) .
“Double-digit sales growth on average across key street markets…our shopper continues to spend” (SVP Leasing) .
“Low 6s GAAP yield…5-year CAGR in excess of 5%” (CIO, year-to-date acquisitions) .
“We have both the liquidity and balance sheet flexibility…dry powder on call to fund our external growth strategy” (CFO) .

Estimates disclaimer: Values retrieved from S&P Global.*

ACADIA REALTY TRUST (AKR)·Q1 2025 Earnings Summary