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Acadia Realty Collects 71% of Q2 Rents, Monetizes Investment
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Acadia Realty Trust (AKR - Free Report) recently announced that the company has collected and/or agreed for deferral plans with about 83% of its billed rents and recoveries for the second quarter. The company has collected about 71% of its billed rents and recoveries for the quarter. It has entered into payment deferral plans with about 12%, majority of which are national credit tenants and allowed for repayment within a year.
The company is involved in active discussions with the remaining 17% of its billed rent and recoveries tenants as locations start reopening slowly. This reopening bodes well for Acadia Realty’s rent collection prospects.
The company’s core annualized base rent (ABR) comprises its Street and Urban portfolio and the Suburban portfolio.
With respect to the Street and Urban portfolio, which comprises roughly 60% of its core annualized base rent (ABR), the company has collected about 70% of total billed rents and recoveries for the second quarter from this portfolio. In the Suburban portfolio that comprises the remaining 40%, it has collected roughly 72% of billed rents and recoveries for the same time frame.
For less than one percent of its Core ABR, Acadia Realty has entered into abatement agreements and is expected to recognize the same in second-quarter operating results.
The company’s rent collections of 71% for the second quarter seem better than its update of 56% of rent collections provided on Jun 1 and 50% on May 5. Acadia Realty also informed that about 86% of its pro-rata gross leasable area in the core portfolio was open for business as of Jun 30, 2020.
The company also monetized a portion of investment in Albertsons Companies, Inc. (ACI - Free Report) in which it invested in 2004, through its Retailer Controlled Property Venture. Acadia Realty invested $23.5 million. The monetization of the interest helped garner proceeds of $23.2 million. Till date, the company has received cash distributions more than $100 million from its investment in Albertsons, including the latest monetization. With the conclusion of this transaction, the company has about 4 million shares remaining as ownership interest in the venture. Acadia Realty’s proportionate ownership interest is about 28% in the venture.
As liquidity and balance-sheet management efforts have gained importance amid the coronavirus pandemic and the resultant impact on the economy and financial markets, the move to monetize Acadia Realty’s Albertsons investment seems a strategic fit.
Retail REITs including Simon Property Group (SPG - Free Report) and Macerich (MAC - Free Report) have already been battling store closures and bankruptcy issues. The pandemic has further aggravated these woes. Retail real estate landlords now have to cope with uncertain rent collections apart from dwindling footfall as consumers are now avoiding social gatherings and opting for online purchases.
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This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.
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Acadia Realty Collects 71% of Q2 Rents, Monetizes Investment
Acadia Realty Trust (AKR - Free Report) recently announced that the company has collected and/or agreed for deferral plans with about 83% of its billed rents and recoveries for the second quarter. The company has collected about 71% of its billed rents and recoveries for the quarter. It has entered into payment deferral plans with about 12%, majority of which are national credit tenants and allowed for repayment within a year.
The company is involved in active discussions with the remaining 17% of its billed rent and recoveries tenants as locations start reopening slowly. This reopening bodes well for Acadia Realty’s rent collection prospects.
The company’s core annualized base rent (ABR) comprises its Street and Urban portfolio and the Suburban portfolio.
With respect to the Street and Urban portfolio, which comprises roughly 60% of its core annualized base rent (ABR), the company has collected about 70% of total billed rents and recoveries for the second quarter from this portfolio. In the Suburban portfolio that comprises the remaining 40%, it has collected roughly 72% of billed rents and recoveries for the same time frame.
For less than one percent of its Core ABR, Acadia Realty has entered into abatement agreements and is expected to recognize the same in second-quarter operating results.
The company’s rent collections of 71% for the second quarter seem better than its update of 56% of rent collections provided on Jun 1 and 50% on May 5. Acadia Realty also informed that about 86% of its pro-rata gross leasable area in the core portfolio was open for business as of Jun 30, 2020.
The company also monetized a portion of investment in Albertsons Companies, Inc. (ACI - Free Report) in which it invested in 2004, through its Retailer Controlled Property Venture. Acadia Realty invested $23.5 million. The monetization of the interest helped garner proceeds of $23.2 million. Till date, the company has received cash distributions more than $100 million from its investment in Albertsons, including the latest monetization. With the conclusion of this transaction, the company has about 4 million shares remaining as ownership interest in the venture. Acadia Realty’s proportionate ownership interest is about 28% in the venture.
As liquidity and balance-sheet management efforts have gained importance amid the coronavirus pandemic and the resultant impact on the economy and financial markets, the move to monetize Acadia Realty’s Albertsons investment seems a strategic fit.
Shares of this Zacks Rank #3 (Hold) company have appreciated 48.8%, so far this year, against the 24.5% decline recorded by the industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Retail REITs including Simon Property Group (SPG - Free Report) and Macerich (MAC - Free Report) have already been battling store closures and bankruptcy issues. The pandemic has further aggravated these woes. Retail real estate landlords now have to cope with uncertain rent collections apart from dwindling footfall as consumers are now avoiding social gatherings and opting for online purchases.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.
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