阿卡迪亚不动产信托 2024年度报告

$QQXDO5HSRUWRQ)RUP. IRUWKH\HDUHQGHG'HFHPEHU March 25, 2025 Dear Fellow Shareholders: After several challenging years navigating past the headwinds from Covid, supply chain shocks,and rising interest rates, 2024 was a year where the key drivers of our business accelerated inexcess of our expectations. With continued leasing momentum driving internal growth, strongaccess to capital and attractive investment opportunities we, once again, were able to hit on allcylinders. As much as things change.Notwithstanding the many changes we put in place over the past fewyears, the four key drivers of our business remain the same: maintaining a differentiated/high-growth Core Portfolio, a strong and flexible balance sheet, dynamic external growth, and anenergized management team. What Separates Acadia? There are two significant differentiators for Acadia: First is our focus on street retail, which overthe past decade has distinguished us from our peers. Today, the majority of what we refer to as ourCore Portfolio consists of street retail assets located in key, must-have retail corridors desired byboth tenants and shoppers. What is street retail?If you have gone shopping in SoHo in NYC or Melrose Place in LA, thatis street retail. Other dominant street retail markets where we are active include M Street inGeorgetown, Washington DC; Madison Avenue, NYC; Williamsburg, Brooklyn; GreenwichAvenue, Connecticut; the Gold Coast and Armitage Avenue, Chicago; and Henderson Avenue,Dallas. In fact, street retail now represents over 60% of our Core Portfolio value. Why street retail?For the following reasons, we believe that street retail is positioned to havehigher growth rates over the next decade than other retail formats.First,when compared with otheropen-air formats, street retail assets have higher embedded contractual growth - generally 3% peryear. Second, street retail leases have more frequent opportunities to increase rents to market rates.Finally, for reasons that I will discuss below, we see tenant performance (tenant sales) and tenantdemand remaining strong. Our focus is to own a portfolio of assets that produces superior same-property net operating income(“NOI”)growth consistent with the 5% growth we have deliveredover the last three years. Why is tenant demand growing?After several years of headwinds, first from the rise of e-commerce (sometimes referred to as the Retail Armageddon), and then exacerbated by thelockdown from Covid, we have recently experienced a significant increase in retail tenant demandand tenant performance. This trend appears to be more long-lasting and secular than cyclical. Thisis due to several factors: first, there has been limited new development for almost 10 years. Thislack of new supply has brought the supply/demand ratio into balance. Second, retailers are onceagain appreciating the importance of the physical store as the dominant pathway to profitability inan omni-channel world (omni-channel meaning online, wholesale and in-store sales). Third,retailers also recognize that stores provide a more meaningful connection of their brand to their customers. This direct-to-consumer (“DTC”) trend has caused retailers to double down on theirneed for stores in the key corridors in which we are active. Looking forward, we see this trendcontinuing as more retailers recognize the critical importance of having their own store as opposedto simply selling through department stores or online, where profitability remains elusive. This istrue for luxury retailers such as Saint Laurent, which we expanded on Rush Street in Chicago andZimmerman in SoHo, as well as Advanced Contemporary brands such as Aritzia and Athleisurebrands such as lululemon, Alo, and Vuori, which are all important tenants in our portfolio. While we enter 2025 with continued economic uncertainty, the decisions our retailers are makingin their migration to these key streets seem to transcend any shorter-term economic headwinds thatmight emerge. Our goal.Our goal is to make Acadia the premier owner/operator of street retail in the US. Ourfocus will be high growth, high barrier-to-entry markets where we use our core competencies anddeep tenant relationships to create value. We will be most active in those markets where havingstores is mission critical to our tenants and we will pay special attention to those retail corridorswhere we can create enough concentration of ownership to drive the benefits of scale. We refer tothis concentration of ownership in a corridor asconnecting the dots. We have done thissuccessfully on Armitage Avenue in Chicago and are on our way in M Street in Georgetown,Williamsburg, Brooklyn and Henderson Avenue in Dallas, and several other markets where weare currently active. Connecting the dots also means: 1.Assembling a portfolio of the most desirable street retail assets in key urban corridorsacross the country, where retailer demand consistently outpaces supply.2.Leveraging our dee