Acadia Realty Trust Q2 2010 Earnings Call Transcript
Now, we recognize that most of our internal information is more often than not a lagging, not a leading indicator and it’s heavily anecdotal, so some level of caution appropriate. And probably most importantly, our view is however bumpy this recovery may remain to be, we believe we’re well positioned both in terms of our existing portfolio, our balance sheet and our external investment platform.
So, first, in terms of our portfolio performance in the second quarter our same store performance for the quarter and year-to-date were stronger than we had originally forecasted. This is primarily due to fact that our team was able to retain a higher percentage of tenants with lower default rates than was originally anticipated.
As we previously discussed our same store NOI declined was concentrated in our two previously discussed vacancies of Absecon, New Jersey and Chestnut Hill, and excluding them, the portfolio would have produced otherwise positive results more or less across the board.
Furthermore in the second quarter, we also saw continued stability and consistency in the performance metrics of our existing tenants both in terms of defaults, evictions, bankruptcies and collections and our more anecdotal conversations and negotiations with our retailers seems to be consistent with a stabilizing economic outlook.So, in short, as opposed to our original year-end more conservative expectations, we see the impact of the recession on occupancy declines having been shallower and in shorter duration than we originally anticipated. Furthermore, we’re beginning to once again see opportunities to harvest value within our portfolio by recapturing space from underperforming tenants and then releasing that space for positive spreads. In the second quarter our leasing team successfully negotiating the recapture of co-anchor in our New Loudon shopping center. This was a 65,000 square foot on time department store box. It was terminated and taken back, and simultaneously, we entered into two leases, one to expand our existing and thriving price chopper supermarket bringing that tenant to 88,000 square feet, and the balance going to Hobby Lobby.
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