Acadia Realty Trust (NYSE:AKR) Q4 2019 Earnings Conference Call - Final Transcript
Feb 13, 2020 • 12:00 pm ET
Ladies and gentlemen, thank you for standing by, and welcome to the Q4 2019 Acadia Realty Trust Earnings conference Call. [Operator Instructions]
I would now like to hand the call over to your host, Brandon Clark. Sir, please go ahead.
Good afternoon, and thank you for joining us for the Fourth Quarter 2019 Acadia Realty Trust earnings Conference Call. My name is Brandon Clark, and I'm an Analyst in our Acquisitions department. Before we begin, please be aware that statements made during the call that are not historical may be deemed forward-looking statements within the meaning of the Securities and Exchange Act of 1934, and actual results may differ materially from those indicated by such forward-looking statements due to a variety of risks and uncertainties, including those disclosed in the company's most recent Form 10-K and other periodic filings with the SEC. Forward-looking statements speak only as of the date of this call, February 13, 2020, and the company undertakes no duty to update them.
During this call, management may refer to certain non-GAAP financial measures, including funds from operations and net operating income. Please see Acadia's earnings press release posted on its website for reconciliations of these non-GAAP financial measures with the most directly comparable GAAP financial measures.
Now it is my pleasure to turn the call over to Ken Bernstein, President and Chief Executive Officer, will begin today's management remarks.
Kenneth F. Bernstein
Thanks, Brandon. Good afternoon. We had another solid quarter. But before we drill into last quarter's results, I'd like to start with a review of some of the trends that we are seeing and how we have been positioning Acadia to capitalize on them. After that, Amy will discuss our Fund platform and our progress on that front. And then finally, John will discuss our quarterly results, our balance sheet metrics and our forecasts for 2020. First, in looking back on 2019, the year played out consistently with what we previously described as a bumpy bottom for retail real estate, meaning that while not ignoring the continued headwinds, by most measures, leasing demand and tenant performance was better in 2019 than it was in the prior two years.
And so far this year, we see that trend continuing. But we call it bumpy because we are still working through a slower than desirable separation of the have and have-nots amongst both retailers as well as retail real estate. Fortunately, as we begin to cut through the fog of the last few years, we can see with increased clarity how the recovery from this highly disruptive period is playing out. Now this does not ignore the impact of e-commerce or other headwinds. But it is becoming increasingly clear that almost all types of retailers are recognizing the importance of the physical store. And last year, we saw the following positive drivers begin to take form. First of all, there is still no simple one size fits all answer for what is the formula for a successful 21st century retailer. But