Acadia Realty Trust Launches $500 Million ATM Equity Offering

Acadia Realty Trust (NYSE:AKR), with a market capitalization of $2.98 billion, has announced an at-the-market equity offering program to sell common shares with a total value of up to $500 million. The real estate investment trust (REIT), which specializes in the ownership, acquisition, development, and management of retail properties, disclosed this on Thursday, entering into an agreement with several financial institutions. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.97, indicating robust financial health.

The Rye, New York-based trust entered into a Sales Agreement with BofA Securities, Inc., Barclays (LON:BARC) Capital Inc., Goldman Sachs & Co. LLC, and other sales agents and forward sellers. The arrangement also involves forward purchasers like Bank of America, N.A., and Goldman Sachs & Co. LLC among others.

Under the agreement, Acadia Realty Trust may sell shares from time to time on the New York Stock Exchange or other exchanges, at market prices or negotiated transactions. The REIT also has the option to engage in forward sale agreements, where the forward sellers would borrow and sell shares on behalf of the company.

The compensation for sales agents is capped at 2.0% of the gross sales price of the shares sold. Acadia Realty Trust has the discretion to suspend the offering at any time, and there is no obligation to sell the entire $500 million in shares.

Net proceeds from the offering will be contributed to Acadia Realty Limited Partnership, the operating partnership of the company. The intended use for these funds includes acquisitions, debt repayment, working capital, and other corporate purposes. In the interim, the proceeds may be invested in short-term instruments. For deeper insights into AKR's valuation and growth prospects, InvestingPro subscribers can access comprehensive analysis and 8 additional ProTips in our detailed Research Report, part of our coverage of over 1,400 US stocks.

The company may physically settle any forward sale agreements by delivering shares, but it also retains the option to cash settle or net share settle, which could affect the proceeds received.

This move comes as part of Acadia Realty Trust's broader strategy to manage its portfolio and strengthen its financial position. The information provided in this article is based on the company's SEC filing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.