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Acadia Realty Trust Reports Third Quarter 2005 Operating Results; Raises 2005 Annual Guidance.

Article Excerpt
NEW YORK -- Acadia Realty Trust (NYSE: AKR - "Acadia" or the "Company"), a real estate investment trust ("REIT") today reported operating results for the quarter and nine months ended September 30, 2005. All per share amounts discussed below are on a fully diluted basis.

Third Quarter 2005 Highlights

Strong FFO growth continues

--Funds from operations ("FFO") were $0.30 per share up from $0.23 for third quarter 2004

--Earnings per share of $0.22 for the third quarter 2005 from continuing operations were up compared with $0.11 for third quarter 2004

--Increased 2005 annual guidance which is now expected to range between $1.07 to $1.09 per share

Wholly-owned portfolio occupancy increases to 93.9%

--Same-store net operating income for the retail portfolio up 5.1% for 2005

--Occupancy up 60 basis points over second quarter 2005

--JV operating portfolios combined occupancy remains strong at 96.9%

Balance sheet remains strong

--Maintained conservative dividend payout ratio for 2005 of 61% of FFO

--32% debt to total market capitalization

--3.8 to 1 fixed-charge coverage for 2005

External Growth: Urban/Infill redevelopment pipeline expands with two additions to New York Portfolio - Infill asset to be acquired in Chicago

--Entered into agreement to acquire a controlling leasehold interest in the Brooklyn Terminal Market in Canarsie, Brooklyn

--Acquired 260 East 161st Street in The Bronx, New York

--Entered into agreement to acquire retail building in Chicago, Illinois

Third Quarter Results

FFO, a widely accepted measure of REIT performance, for the quarter ended September 30, 2005 was $9.9 million, or $0.30 per share compared to $7.2 million, or $0.23 per share, for third quarter 2004. Third quarter 2005 results included settlement income of approximately $0.3 million, or $0.01 per share, representing Acadia's share of bankruptcy proceeds received from Penn Traffic through Acadia Fund I. The third quarter 2004 results included a charge of $0.7 million, or $0.02 per share, to reserve for the potential payment related to flood damage incurred at the Mark Plaza located in Wilkes-Barre, Pennsylvania. For the nine months ended September 30, 2005, FFO was $27.3 million, or $0.82 per share, as compared to $22.4 million, or $0.73 per share, for the nine months ended September, 2004.

Income from continuing operations was $7.3 million, or $0.22 per share, for third quarter 2005 compared to $3.1 million or $0.11 per share, for third quarter 2004. In addition to the above-mentioned settlement income, third quarter 2005 included income of $2.2 million (net of $1.5 million of income taxes), or $0.07 per share, representing the Company's share of gain, through its investment funds, from the sale of certain Mervyn's locations during the quarter. For the nine months ended September 30, 2005, income from continuing operations was $16.7 million, or $0.52 per share compared to $10.1 million or $0.34 per share for the same period in 2004.

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