NYSE:AKR

Stock Analysis Report

Executive Summary

Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual - Core and Fund - operating platforms and its disciplined, location-driven investment strategy.

Rewards

Trading at 20.1% below its fair value

Earnings are forecast to grow 3.49% per year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has Acadia Realty Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AKR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

AKR

2.3%

US REITs

0.8%

US Market


1 Year Return

-1.8%

AKR

20.0%

US REITs

25.1%

US Market

Return vs Industry: AKR underperformed the US REITs industry which returned 17.9% over the past year.

Return vs Market: AKR underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

AKRIndustryMarket
7 Day1.3%2.3%0.8%
30 Day-1.5%4.3%3.1%
90 Day-11.6%0.3%10.9%
1 Year2.4%-1.8%24.9%20.0%27.7%25.1%
3 Year-9.2%-19.6%36.0%18.9%51.3%41.6%
5 Year-13.1%-28.4%47.5%17.1%77.2%57.6%

Price Volatility Vs. Market

How volatile is Acadia Realty Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Acadia Realty Trust undervalued compared to its fair value and its price relative to the market?

26.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AKR ($25.45) is trading below our estimate of fair value ($31.84)

Significantly Below Fair Value: AKR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AKR is poor value based on its PE Ratio (54.7x) compared to the REITs industry average (37.8x).

PE vs Market: AKR is poor value based on its PE Ratio (54.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: AKR is poor value based on its PEG Ratio (15.7x)


Price to Book Ratio

PB vs Industry: AKR is good value based on its PB Ratio (1.5x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Acadia Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKR's forecast earnings growth (3.5% per year) is above the savings rate (1.7%).

Earnings vs Market: AKR's earnings (3.5% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: AKR's earnings are forecast to grow, but not significantly.

Revenue vs Market: AKR's revenue (0.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: AKR's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AKR's Return on Equity is forecast to be low in 3 years time (2.7%).


Next Steps

Past Performance

How has Acadia Realty Trust performed over the past 5 years?

-13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKR has a large one-off gain of $9.5M impacting its September 30 2019 financial results.

Growing Profit Margin: AKR's current net profit margins (12.8%) are lower than last year (16.8%).


Past Earnings Growth Analysis

Earnings Trend: AKR's earnings have declined by -13.5% per year over the past 5 years.

Accelerating Growth: AKR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AKR had negative earnings growth (-14%) over the past year, making it difficult to compare to the REITs industry average (8.1%).


Return on Equity

High ROE: AKR's Return on Equity (-0.01%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Acadia Realty Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AKR has a high level of physical assets or inventory.

Debt Coverage by Assets: AKR's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: AKR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AKR has a sufficient allowance for bad loans.

Low Risk Liabilities: AKR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AKR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AKR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AKR has an appropriate level of bad loans.


Next Steps

Dividend

What is Acadia Realty Trust's current dividend yield, its reliability and sustainability?

4.50%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: AKR's dividend (4.56%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: AKR's dividend (4.56%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: AKR's dividend payments have been volatile in the past 10 years.

Growing Dividend: AKR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72%), AKR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AKR's dividends in 3 years are forecast to be thoroughly covered by earnings (0.9% payout ratio).


Next Steps

Management

What is the CEO of Acadia Realty Trust's salary, the management and board of directors tenure and is there insider trading?

8.0yrs

Average management tenure


CEO

Kenneth Bernstein (58yo)

19yrs

Tenure

US$5,127,625

Compensation

Mr. Kenneth F. Bernstein J.D., has been the chief executive officer of Acadia Realty Trust since 2001 and the president and a trustee since its formation in 1998. Mr. Bernstein serves as an Independent Dir ...


CEO Compensation Analysis

Compensation vs Market: Kenneth's total compensation ($USD5.13M) is above average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Kenneth's compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.0yrs

Average Tenure

58yo

Average Age

Experienced Management: AKR's management team is seasoned and experienced (8 years average tenure).


Board Age and Tenure

15.8yrs

Average Tenure

68yo

Average Age

Experienced Board: AKR's board of directors are seasoned and experienced ( 15.8 years average tenure).


Insider Trading

Insider Buying: AKR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,69113 Dec 19
Wendy Luscombe
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares65
Max PriceUS$26.02
SellUS$8,23514 Nov 19
Wendy Luscombe
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares300
Max PriceUS$27.45
SellUS$556,65210 Jun 19
Christopher Conlon
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares20,000
Max PriceUS$27.83
SellUS$5,63602 May 19
Wendy Luscombe
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares200
Max PriceUS$28.18
SellUS$280,60005 Mar 19
Christopher Conlon
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares10,000
Max PriceUS$28.21
SellUS$4,92615 Feb 19
Richard Hartmann
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & Senior VP
Shares168
Max PriceUS$29.32

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Kenneth Bernstein (58yo)

    President

    • Tenure: 19yrs
    • Compensation: US$5.13m
  • Mike Nelsen (72yo)

    Senior Vice President of Accounting & Financial Principal

    • Compensation: US$1.06m
  • Joe Hogan (68yo)

    Senior VP & Director of Construction

    • Tenure: 21yrs
    • Compensation: US$477.86k
  • Joseph Napolitano (54yo)

    Chief Administrative Officer & Senior VP

    • Tenure: 12.8yrs
    • Compensation: US$1.11m
  • Chris Conlon (59yo)

    Executive VP & COO

    • Tenure: 8yrs
    • Compensation: US$1.85m
  • Richard Hartmann

    Chief Accounting Officer & Senior VP

    • Amy Racanello

      Senior VP of Capital Markets & Investments

      • Jason Blacksberg (43yo)

        Chief Compliance Officer

        • Tenure: 5.7yrs
        • Compensation: US$1.06m
      • John Gottfried (47yo)

        Senior VP & CFO

        • Tenure: 3.6yrs
        • Compensation: US$1.33m
      • Estelle Nikolopoulos

        Vice President of Human Resources

        • Tenure: 1yrs

      Board Members

      • Doug Crocker (79yo)

        Independent Trustee

        • Tenure: 16.2yrs
        • Compensation: US$173.31k
      • Larry Kellar (82yo)

        Independent Trustee

        • Tenure: 16.2yrs
        • Compensation: US$200.41k
      • Lee Wielansky (68yo)

        Independent Lead Trustee

        • Tenure: 16yrs
        • Compensation: US$261.55k
      • Kenneth Bernstein (58yo)

        President

        • Tenure: 19yrs
        • Compensation: US$5.13m
      • Lynn Thurber (72yo)

        Independent Trustee

        • Tenure: 3.8yrs
        • Compensation: US$161.39k
      • Wendy Luscombe (68yo)

        Independent Trustee

        • Tenure: 15.7yrs
        • Compensation: US$165.04k
      • C. Zoba (67yo)

        Independent Trustee

        • Tenure: 4.4yrs
        • Compensation: US$173.51k
      • Bill Spitz (67yo)

        Independent Trustee

        • Tenure: 12.4yrs
        • Compensation: US$165.04k

      Company Information

      Acadia Realty Trust's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Acadia Realty Trust
      • Ticker: AKR
      • Exchange: NYSE
      • Founded: 1964
      • Industry: Retail REITs
      • Sector: Real Estate
      • Implied Market Cap: US$2.300b
      • Market Cap: US$2.215b
      • Shares outstanding: 90.28m
      • Website: https://www.acadiarealty.com

      Number of Employees


      Location

      • Acadia Realty Trust
      • 411 Theodore Fremd Avenue
      • Suite 300
      • Rye
      • New York
      • 10580
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      AKRNYSE (New York Stock Exchange)YesCommon SharesUSUSDAug 1998
      WX1DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1998

      Biography

      Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual - Core and Fund - operating platforms and its disciplined, location-driven investment strategy. Acadia Realty Trust is accomplishing this goal by building a best-in-class core real estate portfolio with meaningful concentrations of assets in the nation’s most dynamic urban and street-retail corridors; making profitable opportunistic and value-add investments through its series of discretionary, institutional funds; and maintaining a strong balance sheet. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/21 23:30
      End of Day Share Price2020/01/21 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.