Monday, October 1, 2012

Acadia Realty Says FFO Up 15%

Acadia Realty Trust(AKR), which owns and rents commercial space to retailers, said funds from operation, or FFO, rose 15% in the first quarter, beating analysts' estimates.

The company's FFO, a widely watched performance metric for real-estate investment trusts, came in at $14.3 million, or 41 cents a share, compared with $12.4 million, or 36 cents a share a year ago. Analysts were expecting 32 cents a share.

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Total revenue in the quarter was $35.1 million, up from $28 million last year.Acadia, based in White Plains, N.Y., attributed the results to balance-sheet gains, including the purchase of $18.5 million of the company's outstanding convertible debt, and an increase in interest income on investments in mezzanine debt made last year. Those gains offset declines in net operating income of 3.3%. Acadia said the bankruptcy of Circuit City, which had been a tenant in two of the firm's core properties, hurt results in the first quarter.Looking ahead, the company said in its after-market press release that its recent stock issuance would dilute 2009 EPS by 4 cents to 5 cents, higher than the previously announced range of 3 cents to 4 cents. It now expects full-year FFO per share of 96 cents to $1.09; analysts are targeting $1.04.Earlier this month, Acadia said it planned to raise capital by selling 4.5 million shares to the public, money it would use to pay down debt and for general corporate purposes.

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