Financial Instruments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands):


	June 30, 2025							December 31, 2024
	Level 1		Level 2			Level 3		Level 1		Level 2			Level 3
Assets
Marketable equity securities	$	10,908	$	—		$	—	$	14,771	$	—		$	—
Derivative financial instruments		—		12,605			—		—		31,145			—
Liabilities
Derivative financial instruments		—		(2,836	)		—		—		(1,598	)		—

Schedule realized and unrealized gain (loss) on marketable securities

The following table represents the realized and unrealized gains (losses) on marketable securities included in Realized and unrealized holding gains (losses) on investments and other on the Company’s Condensed Consolidated Statements of Operations (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Realized gain on marketable securities, net	$	5,406		$	3,586		$	5,406		$	7,580
Less: previously recognized unrealized gains on marketable securities sold during the period		(5,406	)		(3,586	)		(5,406	)		(7,580	)
Unrealized (losses) gains on marketable securities still held as of the end of the period and through the disposition date on marketable securities sold during the period		(225	)		(2,020	)		1,543			(4,035	)
Realized and unrealized (losses) gains on marketable securities, net	$	(225	)	$	(2,020	)	$	1,543		$	(4,035	)

Schedule of Items Measured at Fair Value on Nonrecurring Basis

Impairment charges for the six months ended June 30, 2025 are as follows (in thousands):

          
         Impairment Charge (a)

         Property Location

         Owner

         Triggering Event

         Effective Date

         Total

         Acadia's Share

New York, NY

Fund III

Reduced holding period

June 30, 2025

7,240

1,777

New York, NY

Fund IV

Reduced holding period

June 30, 2025

17,400

3,991

Total 2025 Impairment Charges (b)

24,640

5,768

(a)

The fair value of the Fund III property, which was classified as held for sale, was based on the purchase and sale agreement, excluding selling costs. The fair value of the Fund IV property was estimated using a discounted cash flow model with a discount rate of 9.25% and a capitalization rate of 8.25%, resulting in a Level 3 fair value of $28.6 million as of the June 30, 2025 measurement date.

(b)

An additional $0.4 million impairment related to the Company’s investment in Fifth Wall (Note 4) is included in Realized and unrealized holding gains (losses) on investments and other, in the Company’s Condensed Consolidated Statement of Operations.

Schedule of Derivative Financial Instruments

The Company had the following interest rate swaps and caps for the periods presented (information is as of June 30, 2025, unless otherwise noted, and dollars in thousands):


					Strike Rate					Fair Value
Derivative Instrument	Aggregate Notional Amount		Effective Date	Maturity Date	Low			High	Balance Sheet Location	June 30, 2025			December 31, 2024
Core
Interest Rate Swaps	$	581,000	May 2022—Apr 2025	Apr 2026—Jul 2030	1.98%	—		3.35%	Other Assets	$	12,237		$	28,173
Interest Rate Swaps		252,000	Dec 2022—Jun 2025	Nov 2026—Apr 2030	3.41%	—		4.50%	Accounts payable and other liabilities		(1,997	)		(1,316	)
	$	833,000								$	10,240		$	26,857

Fund II
Interest Rate Swap	$	50,000	Jan 2023	Dec 2029	3.23%	—		3.23%	Other Assets	$	273		$	1,615

Fund III
Interest Rate Cap	$	33,000	Sep 2023	Oct 2025	5.50%		—	5.50%	Other Assets	$	—		$	1

Fund IV
Interest Rate Cap	$	54,500	Dec 2023	Dec 2025	6.00%		—	6.00%	Other Assets	$	—		$	2

Fund V
Interest Rate Swaps	$	65,885	Jan 2023—May 2023	May 2026—Dec 2027	3.36%	—		3.47%	Other Assets	$	95		$	1,352
Interest Rate Swaps		151,466	Mar 2024—Jun 2025	Mar 2026—Feb 2028	3.43%	—		4.49%	Accounts payable and other liabilities		(839	)		(282	)
Interest Rate Cap		32,200	Aug 2023	Sep 2025	5.00%	—		5.00%	Other Assets		—			2
	$	249,551								$	(744	)	$	1,072

Total asset derivatives										$	12,605		$	31,145
Total liability derivatives										$	(2,836	)	$	(1,598	)

Schedule of Other Financial Instruments Carrying Values and Fair values

The Company’s other financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands, inclusive of amounts attributable to noncontrolling interests where applicable):


			June 30, 2025				December 31, 2024
	Level		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value

Notes Receivable (a)		3	$	154,682	$	156,695	$	126,584	$	127,485
City Point Loan (a)		3		66,741		67,722		66,741		68,204
Mortgage and Other Notes Payable (a)		3		1,010,972		1,005,986		958,947		954,276
Investment in non-traded equity securities (b)		3		3,512		3,512		4,073		4,073
Unsecured notes payable and Unsecured line of credit (c)		2		803,500		807,503		589,000		589,018

(a)

The Company estimates the fair value of financial instruments using a discounted cash flow model. This model incorporates assumptions such as current market rates and, where applicable, the credit quality of the borrower or tenant. In addition, the Company evaluates the value of the underlying collateral, considering factors such as collateral quality, borrower creditworthiness, time to maturity, and prevailing market conditions. These fair value estimates exclude unamortized discounts and deferred loan costs. As of the reporting date, the estimated market interest rates used in the valuation ranged from 3.93% to 13.11% for the Company’s notes receivable and City Point Loan, and from 5.27% to 7.70% for the Company’s property mortgage loans and other notes payable, depending on the specific characteristics of each loan.

(b)

Includes the Operating Partnership’s cost-method investment in Fifth Wall (Note 4).

(c)

The Company estimates the fair value of its unsecured notes payable and unsecured line of credit using quoted market prices in active or brokered markets, when available. In instances where observable market prices are not available due to limited or no trading activity, the Company estimates fair value using a discounted cash flow model. This model incorporates a rate that reflects the average yield of comparable instruments issued by market participants with similar credit risk profiles.

ACADIA REALTY TRUST 10-Q