Acadia Realty Trust Enters into ATM Equity Offering Sales Agreement

Acadia Realty Trust (NYSE: AKR) recently disclosed in an 8-K filing with the Securities and Exchange Commission that on October 28, 2024, the company and its operating partnership, Acadia Realty Limited Partnership, have entered into an ATM Equity Offering Sales Agreement. The agreement involves sales agents and forward sellers to offer common shares of beneficial interest of the Company amounting to a total aggregate sale price of up to $400,000,000 through an at-the-market equity offering program.

The Shares to be sold will be issued under the Company’s shelf registration statement on Form S-3 ASR (File No. 333-275356) supplemented by a prospectus filed on the same day with the SEC. Sales of the Shares may be conducted through ordinary brokers’ transactions on the New York Stock Exchange or other national securities exchanges, at market prices prevailing at the time, or through negotiated transactions, block transactions, or other methods as agreed upon.

Additionally, the Company may enter into forward sale agreements with the Forward Purchasers, where the relevant Forward Sellers will sell a number of common shares equal to the Shares underlying the particular forward sale agreement at the Company’s request.

Under the Sales Agreement, sales agents will be entitled to compensation of up to 2.0% of the gross sales price of the Shares sold through them. The Company retains the discretion to refrain from selling any of the Shares under the agreement and can suspend solicitation and offers at any time.

The net proceeds from the offering will be directed to the Operating Partnership for general corporate purposes, including potential future acquisitions, repayment of outstanding debts, working capital, and other general corporate uses. The Operating Partnership plans to invest the net proceeds in short-term instruments until a decision is made regarding their allocation.

While physical settlement is the anticipated method for any forward sale agreement entered into, the Company reserves the option to cash settle or net share settle all or a portion of its obligations. Any forward sale agreement is subject to early termination or settlement under specific circumstances.

The Sales Agents, Forward Purchasers, and their affiliates may have or will engage in various financial dealings with the Company and its subsidiaries, potentially receiving fees and commissions for such transactions.

This summary of the Sales Agreement is subject to the full documentation, which can be accessed in the Form 8-K filing. The Company’s legal counsel, Venable LLP, has delivered a legality opinion in connection with the offering of the Shares.

The Company also provided its financial statements and related exhibits as required by Item 9.01 of the filing, including the Sales Agreement and the opinion of Venable LLP.

As of the date of this report, the executive officer of Acadia Realty Trust has duly authorized the filing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Acadia Realty Trust’s 8K filing here.

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 Portfolio 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.