NEW YORK CITY-Acadia Realty Trust has expanded its New York urban/redevelopment pipeline to seven projects aggregating a range of 1.25 million sf to 1.5 million sf. The REIT expects to spend between $275 million and $325 million to realize them. The firm is exploring placing a self-storage element into a number of projects through a partnership with Storage Post.

The REIT continues along with its three-fold directive of maintaining a solid core portfolio and strong balance sheet in addition to creating a profitable external growth platform. The firm doesn’t anticipate short-term earnings from the infill projects this year, but expects significant earnings over the next few years. “In a company of our size, even a few smaller transactions can make a difference,” said Kenneth Bernstein, president and CEO, during a conference call.

During December 2005, the firm’s Fund II acquired the remaining 40-year term of a leasehold interest in land located at Liberty Avenue and 98th Street in Ozone Park, Queens. The development plans for this property includes 30,000 sf of retail anchored by a CVS drug store and a 98,500 sf self-storage facility to be operated by Storage Post. Acadia will be a partner in the self-storage complex with Storage Post, which is anticipated to be a partner in future retail projects.

The Fund also acquired a 65,000 sf parking garage located at 10th Avenue and 216th Street in the Inwood . The Company plans to redevelop the building into a 60,000 sf office building and is finalizing a transition where it would be occupied by an agency of the City of New York, which is a current tenant at another Acadia Urban/Infill Redevelopment project. Inclusive of acquisition costs, total costs for the project, which also includes a 100-space rooftop parking deck, are anticipated to be $25 million.

“We continued to drive rents while increasing portfolio occupancy to an all time high. Second, we further enhanced the strength of our balance sheet by taking advantage of the flat yield curve and virtually eliminating our exposure to short term and floating rate debt. All of our balance sheet and operating ratios remain strong and prepare us for future growth opportunities,” added Bernstein.

FFO for the year ended December 31, 2005 was $36.2 million, or $1.09 per share compared to $30.3 million, or $0.98 per share, for 2004. On a year-over-year basis, Acadia increased its portfolio occupancy by 200 basis points. Year-end 2005 occupancy was 94.3% compared to 92.3% at year-end 2004 and 87.6% for 2003.

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