Investment Thesis
ACADIA Realty Trust exhibits revenue growth of 14.2% YoY and healthy free cash flow margins of 30.4%, but concerning profitability trends including a 47.4% EPS decline, anemic ROE of 1.3%, and flat net income growth despite topline expansion raise material concerns about operational performance. The inflated operating margin of 153.9% relative to revenue suggests significant gains on property valuations or sales masking underlying operational challenges.
Strengths
- Revenue growth of 14.2% YoY demonstrates operational expansion and market presence
- Free cash flow margin of 30.4% indicates strong cash generation capability relative to revenue
- Moderate debt-to-equity ratio of 0.70x provides financial flexibility appropriate for REIT sector
Risks
- EPS collapsed 47.4% YoY despite flat net income, signaling severe per-share earnings deterioration and shareholder value destruction
- Minimal returns on equity (1.3%) and assets (0.7%) indicate poor capital deployment efficiency and subpar profitability on deployed capital
- Net income growth of 0% YoY combined with 14.2% revenue growth reveals significant margin compression and suggests operating performance is weakening
Key Metrics to Watch
- Core FFO per share and normalized FFO growth excluding one-time property gains to assess sustainable dividend capacity
- Portfolio occupancy rates and same-store net operating income trends to evaluate operational momentum
- Debt refinancing activity and debt-to-EBITDA trajectory given $1.6B long-term debt load and modest cash position of $31.4M
Financial Metrics
Revenue
103.0M
Net Income
30.5M
EPS (Diluted)
$0.22
Free Cash Flow
31.4M
Total Assets
4.5B
Cash
31.4M
Profitability Ratios
Gross Margin
N/A
Operating Margin
153.9%
Net Margin
29.6%
ROE
1.3%
ROA
0.7%
FCF Margin
30.4%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.70x
Debt/Assets
41.7%
Interest Coverage
N/A
Long-term Debt
1.6B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T12:38:43.516700 |
Data as of: 2026-03-31 |
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