RYE, N.Y.--(BUSINESS WIRE)--Acadia Realty Trust (NYSE: AKR) provided an update on its Core portfolio operations and partial monetization of its investment in Albertsons Companies, Inc.
Core Portfolio Operations Update
As of June 30, 2020, approximately 86% of its pro-rata gross leasable area in the Company’s Core portfolio was open for business. The Company has been actively preparing its locations and working with its tenants to ensure that they are able to reopen as safely and successfully as possible.
As of June 30, 2020, the Company has collected cash and/or reached payment deferral plans on approximately 83% of its second quarter billed rents and recoveries within its Core portfolio. This is comprised of cash collections of 71% and payment deferral plans of 12%. The majority of these deferral plans are with national credit tenants and provide for repayment within one year. Of the remaining 17% of billed rent and recoveries, the Company is in active discussions with its tenants to bring these accounts current as locations continue to reopen.
To date, the Company has agreed to abatements of less than one percent of its annualized base rent (“ABR”). The Company anticipates recognizing these abatements in its second quarter 2020 operating results.
The Company’s Street and Urban portfolio is located in key gateway markets and comprises approximately 60% of its Core ABR. During the second quarter of 2020, the Company collected approximately 70% of its Street and Urban portfolio’s billed rents and recoveries. The Company’s Suburban portfolio represents approximately 40% of its Core ABR, of which the Company collected approximately 72% of its billed rents and recoveries during the second quarter of 2020.
The Company’s cash collections of 71% for the three months ended June 30, 2020 compares favorably to its two most recent interim updates of 56% and 50% previously provided on June 1 and May 5, 2020, respectively.
Additional repayment plans are currently in the process of being finalized. There can be no assurance that all payment deferral plans will be consummated on the agreed-upon terms and/or if consummated, repaid as required by terms of the agreement.
Albertsons Companies Inc.
In 2004, the Company (on behalf of Fund II) formed its Retailer Controlled Property Venture (“RCP Venture”) with an affiliate of Lubert-Adler/Klaff for the purpose of making investments in high-quality real estate owned or controlled by retailers. The RCP Venture made a variety of successful investments, including approximately $23.5 million in Albertsons Companies, Inc. (“Albertsons”).
During the second quarter of 2020, following a series of transactions, including an initial public offering, the RCP Venture monetized a portion of its interest in Albertsons, resulting in cash proceeds of approximately $23.2 million. Following these transactions, the RCP Venture has a remaining ownership interest in Albertsons of approximately 4.0 million shares at June 30, 2020.
To date, inclusive of the distributions received during the second quarter of 2020, the RCP Venture has received cash distributions in excess of $100 million from its investment in Albertsons.
The Company’s proportionate ownership interest in the RCP Venture for each of the amounts stated above is approximately 28%.
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 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 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.
