RYE, N.Y. - Acadia Realty Trust (NYSE: NYSE:AKR), a real estate investment trust, announced today the commencement of an underwritten public offering of 4.5 million common shares. The offering includes a provision for underwriters to purchase up to an additional 675,000 shares.
The public offering is part of a forward sale agreement involving Wells Fargo Bank, National Association, Goldman Sachs & Co. LLC, and Jefferies, who will potentially borrow and sell the shares to the underwriters. Acadia plans to settle these agreements by September 30, 2025, with the possibility of delivering up to 5.175 million shares if the underwriters' option is fully exercised.
Initially, Acadia will not receive proceeds from the sale of shares by the forward purchasers. The company aims to use any future proceeds from the forward sale agreements for general corporate purposes, which may include investment transactions, working capital, and repayment of debt. In the interim, the net proceeds are expected to be invested in short-term instruments.
The offering will be made through a prospectus supplement and an accompanying base prospectus, part of an effective shelf registration statement filed with the SEC. Interested parties can obtain these documents from the SEC's website or directly from the managing book-runners.
This press release does not serve as an offer to sell or a solicitation of an offer to buy any securities of Acadia Realty Trust. Additionally, the sale of these securities will not be lawful in any jurisdiction where such an offering would be prohibited before registration or qualification under the respective securities laws.
Acadia Realty Trust specializes in owning and operating a portfolio of street and open-air retail properties in prime retail corridors, in addition to managing investment funds targeting opportunistic and value-add investments.
The information provided is based on a press release statement from Acadia Realty Trust.
In other recent news, Acadia Realty Trust has made significant strides with its financial strategies and performance. The company expanded its revolving credit facility from $350 million to $525 million, providing additional capital for future investments and operational needs. This move was accompanied by the full repayment of a $175 million term loan, freeing the company from related obligations.
Furthermore, Acadia Realty Trust reported a robust second quarter, leading to an increase in their full-year earnings guidance and quarterly dividend. The growth was driven by its street retail portfolio and the success of properties like City Point. The company's leasing strategy has resulted in consistent sales growth and positive mark-to-market spreads.
These recent developments reflect Acadia's commitment to maintaining a strong balance sheet and ensuring access to necessary capital resources. They also highlight the company's optimism about future growth, with $75 million in advanced negotiations and expectations of more transaction volume in the latter half of the year. As part of their strategy, they are focused on reducing leverage and expanding access to capital for external growth opportunities.
InvestingPro Insights
Acadia Realty Trust's (NYSE: AKR) recent announcement of a public offering comes at a time when the company is experiencing significant market momentum. According to InvestingPro data, AKR has seen a remarkable 66.62% price total return over the past year, with a strong 29.24% return in just the last three months. This performance aligns with an InvestingPro Tip indicating that the company has shown a "Strong return over the last three months."
The REIT's decision to raise capital through this offering may be influenced by its current market position. InvestingPro data shows that AKR is trading at 99.66% of its 52-week high, which is corroborated by an InvestingPro Tip noting that the stock is "Trading near 52-week high." This suggests that the company may be capitalizing on its strong market valuation to secure additional funding for its stated purposes of investment transactions, working capital, and debt repayment.
Investors considering this offering should note that AKR has maintained dividend payments for 26 consecutive years, as highlighted by another InvestingPro Tip. This track record of consistent dividends could be attractive to income-focused investors, especially given the current dividend yield of 3.31%.
For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide further insights into Acadia Realty Trust's financial health and market position.
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