Acadia Realty Trust Announces Expanded $750 Million Senior Unsecured Revolving Credit and Term Loan Facility

Rhea-AI Summary

Acadia Realty Trust (AKR) announces the closure of a $750 million amended and restated credit facility, replacing and extending the existing $700 million credit facility. The oversubscribed facility maintains the pricing spread from the prior one while enhancing the financial covenant package. The credit facility matures on April 15, 2028, with expansion options and an accordion feature to increase to $900 million. The successful execution signifies strong support from capital providers, providing capital and flexibility for growth.

Insights

Financial Analyst

Acadia Realty Trust's expansion of their credit facility by $50 million and the extension of the maturity date suggests a strategic move to bolster financial flexibility. This oversubscribed credit facility, retaining prior pricing spread, indicates strong lender confidence in the company's creditworthiness. The financial covenant improvements should provide Acadia with enhanced terms that may contribute to more favorable debt management and potential for strategic investments.

The accordion feature, which can potentially increase the facility up to $900 million, underscores additional liquidity that is available if needed. This could be instrumental in pursuing growth opportunities that are accretive, meaning they have the potential to increase earnings per share. Investors could view this access to capital positively, as it reflects the company's proactive approach to managing its capital structure in a potentially accretive manner.

Real Estate Market Analyst

In the context of commercial real estate, Acadia's expanded credit aligns with the industry trend of real estate investment trusts (REITs) securing flexible financing to navigate market conditions. Considering Acadia's focus on retail and mixed-use properties, the credit facility's terms could support the REIT in optimizing its portfolio in response to the evolving retail landscape. The term 'accruing external growth' often signifies strategic property acquisitions or developments that can enhance a REIT's portfolio quality and rental income streams.

The timing of this credit facility also reflects strategic financial planning, as the extension grants the company a longer runway to execute its growth strategies amidst economic uncertainties. As a result, the ability to potentially expand the facility may serve as a buffer against liquidity constraints, enabling Acadia to capitalize on market opportunities as they arise.

RYE, N.Y.--(BUSINESS WIRE)-- Acadia Realty Trust (NYSE: AKR) (the “Company”) announced today that it closed on a $750 million amended and restated credit facility, which replaces and extends the Company’s existing $700 million credit facility. The facility was oversubscribed and maintained the pricing spread from the prior facility while improving its financial covenant package.

The amended and restated credit facility matures on April 15, 2028 (with two six-month extension options) and has an accordion feature expandable to $900 million, subject to customary conditions.

"This successful execution highlights the strength and support of our long-standing capital providers," stated John Gottfried, Chief Financial Officer of Acadia Realty Trust. “The expansion and extension of our unsecured facility, at attractive terms, provide us with the capital and flexibility to pursue accretive external growth."

BofA Securities, Inc. and Wells Fargo Securities, LLC served as joint bookrunners, BofA Securities, Inc., Wells Fargo Securities, LLC, Truist Securities, Inc. and PNC Capital Markets LLC served as joint lead arrangers, Wells Fargo Bank, National Association, Truist Bank and PNC Bank, National Association served as syndication agents, and Bank of America, N.A. serves as administrative agent.

About Acadia Realty Trust

Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual – Core Portfolio and Strategic Capital – 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 corridors; making profitable opportunistic and value-add investments through its series of discretionary, institutional funds; and maintaining a strong balance sheet. For further information, please visit www.acadiarealty.com.

The Company uses, and intends to use, the Investors page of its website, which can be found at https://www.acadiarealty.com/investors, as a means of disclosing material nonpublic information and of complying with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations and certain portfolio updates that may include material nonpublic information. Accordingly, investors should monitor the Investors page, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, the website is not incorporated by reference into, and is not a part of, this document.

Safe Harbor Statement

Certain statements in this press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations are generally identifiable by the use of words, such as “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend” or “project,” or the negative thereof, or other variations thereon or comparable terminology. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the Company's actual results and financial performance to be materially different from future results and financial performance expressed or implied by such forward-looking statements, including, but not limited to: (i) macroeconomic conditions, including due to geopolitical conditions and instability, which may lead to a disruption of or lack of access to the capital markets, disruptions and instability in the banking and financial services industries and rising inflation; (ii) the Company’s success in implementing its business strategy and its ability to identify, underwrite, finance, consummate and integrate diversifying acquisitions and investments; (iii) changes in general economic conditions or economic conditions in the markets in which the Company may, from time to time, compete, and their effect on the Company’s revenues, earnings and funding sources; (iv) increases in the Company’s borrowing costs as a result of rising inflation, changes in interest rates and other factors; (v) the Company’s ability to pay down, refinance, restructure or extend its indebtedness as it becomes due; (vi) the Company’s investments in joint ventures and unconsolidated entities, including its lack of sole decision-making authority and its reliance on its joint venture partners’ financial condition; (vii) the Company’s ability to obtain the financial results expected from its development and redevelopment projects; (viii) the ability and willingness of the Company's tenants to renew their leases with the Company upon expiration, the Company’s ability to re-lease its properties on the same or better terms in the event of nonrenewal or in the event the Company exercises its right to replace an existing tenant, and obligations the Company may incur in connection with the replacement of an existing tenant; (ix) the Company’s potential liability for environmental matters; (x) damage to the Company’s properties from catastrophic weather and other natural events, and the physical effects of climate change; (xi) the economic, political and social impact of, and uncertainty surrounding, any public health crisis, such as the COVID-19 Pandemic, which adversely affected the Company and its tenants’ business, financial condition, results of operations and liquidity; (xii) uninsured losses; (xiii) the Company’s ability and willingness to maintain its qualification as a REIT in light of economic, market, legal, tax and other considerations; (xiv) information technology security breaches, including increased cybersecurity risks relating to the use of remote technology; (xv) the loss of key executives; and (xvi) the accuracy of the Company’s methodologies and estimates regarding environmental, social and governance (“ESG”) metrics, goals and targets, tenant willingness and ability to collaborate towards reporting ESG metrics and meeting ESG goals and targets, and the impact of governmental regulation on its ESG efforts.

The factors described above are not exhaustive and additional factors could adversely affect the Company’s future results and financial performance, including the risk factors discussed under the section captioned “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and other periodic or current reports the Company files with the SEC. Any forward-looking statements in this press release speak only as of the date hereof. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any changes in the Company’s expectations with regard thereto or changes in the events, conditions or circumstances on which such forward-looking statements are based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240415359798/en/

Jennifer Han

(914) 288-8100

Source: Acadia Realty Trust

FAQ

What is the ticker symbol for Acadia Realty Trust?

The ticker symbol for Acadia Realty Trust is AKR.

What is the total value of the amended and restated credit facility announced by Acadia Realty Trust?

Acadia Realty Trust announced a $750 million amended and restated credit facility.

When does the amended and restated credit facility mature?

The amended and restated credit facility matures on April 15, 2028, with two six-month extension options.

Who served as the joint bookrunners for Acadia Realty Trust's credit facility?

BofA Securities, Inc. and Wells Fargo Securities, served as joint bookrunners for Acadia Realty Trust's credit facility.

What role did John Gottfried play in the announcement?

John Gottfried is the Chief Financial Officer of Acadia Realty Trust and made a statement regarding the successful execution of the credit facility.