To determine whether a company is one of the best stocks to buy now requires a detailed analysis of that company. We perform a more detailed analysis of one of the roughly 2,000 companies we follow in our “In Focus” reports. In this report, we do a detailed analysis of Acadia Realty Trust.
Acadia Realty Trust (AKR) is a fully integrated, self-managed, self-administered real estate investment trust (REIT). AKR specializes in the acquisition, ownership, development, and management of retail properties. These properties include neighborhood and community shopping centers, and mixed-use properties with retail components.
AKR is headquartered in Rye, New York. And its properties are located primarily in the Northeast, Mid-Atlantic, and Midwestern regions of the United States.
We are not high on REITS in general. And AKR is no exception. But we do like AKR more than most REITs. Its balance sheet appears relatively solid. And its growth has been (and will probably continue to be) balanced if only modest.
However, free cash flows are strongly negative because of an aggressive expansion plan. In the last three years, redevelopment and property improvement costs on existing properties alone are higher than cash flow from operations. Combine this with the fact that the amount spent on the acquisition of new properties is significantly higher the amount spent on improvements means that investment cash flows are strongly negative. AKR seems very optimistic about its future.
We are less optimistic about its future. AKR has cut its dividend more than once since the Great Recession. This is not atypical for a REIT. But it is still nothing to be proud of; and it is an indication that AKR overestimated its growth abilities at least once before.
Overall, we feel AKR’s fundamentals are only average. And we do not consider AKR to be one of the best stocks to buy now.
Stat Sheet – Acadia Realty Trust 4/29/16
|Industry||Real Estate Operations|
|Market Cap||$ 2,323|
|Price Volatility||Below Average|
(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016.)
If you would like to see more research on some the other companies we do consider to be the best stocks to buy now, click the link below.
To learn why we have a penchant for the best dividend stocks, click the link below.
Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.