Financial Instruments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands):

	June 30, 2022						December 31, 2021
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Money market funds	$	—	$	—	$	—	$	—	$	—	$	—
Derivative financial instruments		—		14,098		—		—		7		—
Investment in Albertsons (Note 4)		110,039		—		—		124,316		—		—
Liabilities
Derivative financial instruments		—		1,582		—		—		45,027		—

Schedule of Items Measured at Fair Value on Nonrecurring Basis

During 2021, the Company was impacted by the COVID-19 Pandemic, which caused the Company to reduce its forecasted operating income at certain properties. As a result, several impairments were recorded. Impairment charges for the periods presented are as follows (in thousands):

					Impairment Charge
Property and Location	Owner	Triggering Event	Level 3 Inputs	Effective Date	Total		Acadia's Share
2022 Impairment Charges
None
2021 Impairment Charges
210 Bowery commercial unit, New York, NY	Fund IV	Reduced projected operating income	Projections of: holding period, net operating income, cap rate, incremental costs	Sept 30, 2021	$	3,016	$	697
27 E. 61st Street New York, NY	Fund IV	Reduced projected operating income	Projections of: holding period, net operating income, cap rate, incremental costs	Sept 30, 2021		6,909		1,597
Total 2021 Impairment Charges					$	9,925	$	2,294

Schedule of Derivative Financial Instruments

The Company had the following interest rate swaps and caps for the periods presented (dollars in thousands):

					Strike Rate								Fair Value
Derivative Instrument	Aggregate Notional Amount		Effective Date	Maturity Date	Low				High			Balance Sheet Location	June 30, 2022			December 31, 2021
Core
Interest Rate Swaps	$	185,295	Dec 2012 - Aug 2022	Dec 2022 - Jul 2030		2.92	%	—		3.77	%	Other Liabilities	$	(1,582	)	$	(40,650	)
Interest Rate Swap		416,460	Mar 2015 - Jun 2019	Mar 2025 - Jun 2029		1.71	%	—		2.60	%	Other Assets		7,431			—
	$	601,755											$	5,849		$	(40,650	)
Fund III
Interest Rate Caps	$	35,970	Jan 2021	Jul 2022		3.00	%	—		3.00	%	Other Assets	$	—		$	—
Fund IV
Interest Rate Swaps	$	—	Mar 2017 - Jan 2019	Apr 2022		1.97	%	—		2.61	%	Other Assets	$	—		$	—
Interest Rate Swaps		—										Other Liabilities		—			(167	)
Interest Rate Caps		71,338	Dec 2020 - Jul 2021	Dec 2022-Jul 2023		3.00	%	—		3.50	%	Other Assets		97			7
	$	71,338											$	97		$	(160	)
Fund V
Interest Rate Swaps	$	338,109	Jun 2018 - Apr 2022	Oct 2022 - Apr 2025		0.91	%	—		2.88	%	Other Assets	$	6,570		$	—
Interest Rate Swaps		—										Other Liabilities		—			(4,210	)
	$	338,109											$	6,570		$	(4,210	)
Total asset derivatives													$	14,098		$	7
Total liability derivatives													$	(1,582	)	$	(45,027	)

Schedule of Other Financial Instruments Carrying Values and Fair values

The Company’s other financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands, inclusive of amounts attributable to noncontrolling interests where applicable):

			June 30, 2022				December 31, 2021
	Level		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Notes Receivable (a)		3	$	137,306	$	133,989	$	153,886	$	154,093
Mortgage and Other Notes Payable (a)		3		1,108,011		1,075,664		1,143,805		1,125,571
Investment in non-traded equity securities (b)		3		3,828		6,009		3,656		4,062
Unsecured notes payable and Unsecured line of credit (c)		2		714,790		713,041		675,933		680,171

(a)The Company determined the estimated fair value of these financial instruments using a discounted cash flow model with rates that take into account the credit of the borrower or tenant, where applicable, and interest rate risk. The Company also considered the value of the underlying collateral, taking into account the quality of the collateral, the credit quality of the borrower, the time until maturity and the current market interest rate environment. Amounts exclude discounts and loan costs.

(b)Represents the Operating Partnership’s cost-method investment in Fifth Wall (Note 4).

(c)The Company determined the estimated fair value of the unsecured notes payable and unsecured line of credit using quoted market prices in an open market with limited trading volume where available. In cases where there was no trading volume, the Company determined the estimated fair value using a discounted cash flow model using a rate that reflects the average yield of similar market participants.