Segment Reporting

The Company has three reportable segments: Core Portfolio, Funds and Structured Financing. The Company’s Core Portfolio consists primarily of high-quality retail properties located primarily in high-barrier-to-entry, densely-populated metropolitan areas with a long-term investment horizon. The Company’s Funds hold primarily retail real estate in which the Company co-invests with high-quality institutional investors. The Company’s Structured Financing segment consists of earnings and expenses related to notes and mortgages receivable which are held within the Core Portfolio or the Funds (Note 3). Fees earned by the Company as the general partner or managing member of the Funds are eliminated in the Company’s consolidated financial statements and are not presented in the Company’s segments. During 2016, the Company revised how it allocates general and administrative and income tax expenses among its segments to reflect all such expenses as unallocated corporate expenses. The presentation of the 2016 interim periods have been revised to reflect this change.

The following tables set forth certain segment information for the Company (in thousands):



	As of or for the Three Months Ended September 30, 2017
	Core Portfolio			Funds			Structured Financing		Unallocated			Total
Revenues	$	41,196		$	21,482		$	—	$	—		$	62,678
Depreciation and amortization	(14,746		)	(11,906		)	—		—			(26,652		)
Property operating expenses, other operating and real estate taxes	(10,327		)	(8,162		)	—		—			(18,489		)
Impairment of an asset	—			(3,840		)	—		—			(3,840		)
General and administrative expenses	—			—			—		(7,953		)	(7,953		)
Operating income (loss)	16,123			(2,426		)	—		(7,953		)	5,744
Gain on disposition of properties	—			12,972			—		—			12,972
Interest income	—			—			6,461		—			6,461
Equity in earnings (losses) of unconsolidated affiliates	805			3,196			—		—			4,001
Interest expense	(6,695		)	(8,733		)	—		—			(15,428		)
Income tax provision	—			—			—		(465		)	(465		)
Net income (loss)	10,233			5,009			6,461		(8,418		)	13,285
Net (income) loss attributable to noncontrolling interests	(353		)	(65		)	—		—			(418		)
Net income attributable to Acadia	$	9,880		$	4,944		$	6,461	$	(8,418	)	$	12,867

Real estate at cost	$	1,987,501		$	1,492,894		$	—	$	—		$	3,480,395
Total assets	$	2,237,334		$	1,605,429		$	250,194	$	—		$	4,092,957
Acquisition of real estate	$	—		$	70,020		$	—	$	—		$	70,020
Development and property improvement costs	$	3,359		$	54,180		$	—	$	—		$	57,539



	As of or for the Three Months Ended September 30, 2016
	Core Portfolio			Funds			Structured Financing		Unallocated			Total
Revenues	$	36,376		$	7,479		$	—	$	—		$	43,855
Depreciation and amortization	(12,428		)	(2,789		)	—		—			(15,217		)
Property operating expenses, other operating and real estate taxes	(11,612		)	(2,903		)	—		—			(14,515		)
General and administrative expenses	—			—			—		(12,869		)	(12,869		)
Operating income	12,336			1,787			—		(12,869		)	1,254
Interest income	—			—			7,245		—			7,245
Equity in earnings (losses) of unconsolidated affiliates	1,495			(1,597		)	—		—			(102		)
Interest expense	(6,431		)	(1,551		)	—		—			(7,982		)
Income tax provision	—			—			—		(89		)	(89		)
Net income	7,400			(1,361		)	7,245		(12,958		)	326
Net income attributable to noncontrolling interests	60			5,726			—		—			5,786
Net income attributable to Acadia	$	7,460		$	4,365		$	7,245	$	(12,958	)	$	6,112

Real estate at cost	$	1,832,863		$	1,186,926		$	—	$	—		$	3,019,789
Total assets	$	2,097,386		$	1,214,317		$	266,816	$	—		$	3,578,519
Acquisition of real estate	$	237,729		$	36,600		$	—	$	—		$	274,329
Development and property improvement costs	$	7,296		$	31,235		$	—	$	—		$	38,531



	As of or for the Nine Months Ended September 30, 2017
	Core Portfolio			Funds			Structured Financing		Unallocated			Total
Revenues	$	127,130		$	57,051		$	—	$	—		$	184,181
Depreciation and amortization	(46,719		)	(30,526		)	—		—			(77,245		)
Property operating expenses, other operating and real estate taxes	(33,339		)	(22,088		)	—		—			(55,427		)
Impairment of an asset	—			(3,840		)	—		—			(3,840		)
General and administrative expenses	—			—			—		(25,286		)	(25,286		)
Operating income	47,072			597			—		(25,286		)	22,383
Gain on disposition of properties	—			12,972			—		—			12,972
Interest income	—			—			23,648		—			23,648
Equity in earnings of unconsolidated affiliates	2,348			18,696			—		—			21,044
Interest expense	(20,783		)	(18,883		)	—		—			(39,666		)
Income tax provision	—			—			—		(1,017		)	(1,017		)
Net income	28,637			13,382			23,648		(26,303		)	39,364
Net (income) loss attributable to noncontrolling interests	(1,157		)	2,351			—		—			1,194
Net income attributable to Acadia	$	27,480		$	15,733		$	23,648	$	(26,303	)	$	40,558

Real estate at cost	$	1,987,501		$	1,492,894		$	—	$	—		$	3,480,395
Total assets	$	2,237,334		$	1,605,429		$	250,194	$	—		$	4,092,957
Acquisition of real estate	$	—		$	138,429		$	—	$	—		$	138,429
Development and property improvement costs	$	4,355		$	80,199		$	—	$	—		$	84,554



	As of or for the Nine Months Ended September 30, 2016
	Core Portfolio			Funds			Structured Financing		Unallocated			Total
Revenues	$	109,176		$	26,642		$	—	$	—		$	135,818
Depreciation and amortization	(37,629		)	(9,115		)	—		—			(46,744		)
Property operating expenses, other operating and real estate taxes	(28,460		)	(9,331		)	—		—			(37,791		)
General and administrative expenses	—			—			—		(30,742		)	(30,742		)
Operating income	43,087			8,196			—		(30,742		)	20,541
Gain on disposition of properties	—			81,965			—		—			81,965
Interest income	—			—			19,298		—			19,298
Equity in earnings of unconsolidated affiliates	2,668			924			—		—			3,592
Interest expense	(20,308		)	(4,609		)	—		—			(24,917		)
Income tax provision	—			—			—		(123		)	(123		)
Net income	25,447			86,476			19,298		(30,865		)	100,356
Net income attributable to noncontrolling interests	(2,771		)	(44,630		)	—		—			(47,401		)
Net income attributable to Acadia	$	22,676		$	41,846		$	19,298	$	(30,865	)	$	52,955

Real estate at cost	$	1,832,863		$	1,186,926		$	—	$	—		$	3,019,789
Total assets	$	2,097,386		$	1,214,317		$	266,816	$	—		$	3,578,519
Acquisition of real estate	$	244,022		$	48,887		$	—	$	—		$	292,909
Development and property improvement costs	$	17,518		$	76,903		$	—	$	—		$	94,421