Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Reconciliation of Net Income to Taxable Income (Loss)

Reconciliation of GAAP net income attributable to Acadia to taxable income (loss) is as follows:

	Year Ended December 31,
(in thousands)	2022			2021			2020
Net (loss) income attributable to Acadia	$	(35,445	)	$	23,548		$	(8,976	)
Deferred rental and other (loss) income (a)		(1,854	)		3,209			(2,498	)
Book/tax difference - depreciation and amortization (a)		28,337			24,756			27,052
Straight-line rent and above- and below-market rent adjustments (a)		(11,917	)		(8,588	)		8,630
Book/tax differences - equity-based compensation		5,952			7,663			6,825
Joint venture equity in earnings (losses), net and other investments (a)		22,493			3,962			(163	)
Impairment charges and reserves		54,822			2,657			18,734
Acquisition costs (a)		2,048			22			14
(Loss) gain on disposition of properties		(14,960	)		(2,170	)		4,936
Book/tax differences - miscellaneous		5,638			(1,203	)		(36	)
Taxable income	$	55,114		$	53,856		$	54,518
Distributions declared (b)	$	68,312		$	52,872		$	24,937

a)Adjustments from certain subsidiaries and affiliates, which are consolidated for financial reporting but not for tax reporting, are included in the reconciliation item “Joint venture equity in earnings, net.”

b)The entire fourth quarter 2022 dividend of $17.1 million (paid in January 2023) was attributed to 2023 (Note 10). Any additional distributions required for REIT qualification may be made through October 15, 2023. The entire fourth quarter 2021 dividend of $14.4 million (paid in January 2022) was attributed to 2021. The entire fourth quarter 2019 dividend of $25.2 million (paid in January 2020) was attributed to 2020.

Schedule of Tax Status of Dividends

The Company has determined that the cash distributed to the shareholders for the periods presented is characterized as follows for Federal income tax purposes:

	Year Ended December 31,
	2022					2021					2020
	Per Share		%			Per Share		%			Per Share		%
Ordinary income - Section 199A	$	0.650		90	%	$	0.550		92	%	$	0.520		90	%
Qualified dividend		0.010		1	%		0.010		1	%		—		—	%
Capital gain		0.060		9	%		0.040		7	%		0.060		10	%
Total (a)	$	0.720		100	%	$	0.600		100	%	$	0.580		100	%

a)The fourth quarter 2022 regular dividend was $0.18 per Common Share, all of which is allocable to 2023. The fourth quarter 2021 regular dividend was $0.15 per Common Share, all of which is allocable to 2021.The fourth quarter 2019 regular dividend was $0.29 per Common Share, all of which is allocable to 2020.

Schedule of TRS Income (Loss) and Provision for Income Taxes

Income taxes have been provided for using the liability method as required by ASC Topic 740, “Income Taxes.” The Company’s TRS income (loss) and provision for income taxes associated with the TRS for the periods presented are summarized as follows (in thousands):

	Year Ended December 31,
	2022			2021			2020
TRS loss before income taxes	$	(3,178	)	$	(4,240	)	$	(3,856	)
(Provision) benefit for income taxes:
Federal		—			—			376
State and local		—			—			(268	)
TRS net loss before noncontrolling interests		(3,178	)		(4,240	)		(3,748	)
Noncontrolling interests		—			9			746
TRS net loss	$	(3,178	)	$	(4,231	)	$	(3,002	)

Schedule of Effective Income Tax Rate Reconciliation

The income tax provision for the Company differs from the amount computed by applying the statutory Federal income tax rate to income (loss) before income taxes as follows. Amounts are not adjusted for temporary book/tax differences (in thousands):

	Year Ended December 31,
	2022			2021			2020
Federal tax benefit at statutory tax rate	$	(667	)	$	(890	)	$	(810	)
TRS state and local taxes, net of Federal benefit		(201	)		(268	)		(244	)
Tax effect of:
Permanent differences, net		194			252			227
Adjustment to deferred tax reserve		691			1,061			851
Other		(16	)		(156	)		(132	)
REIT state and local income and franchise taxes		11			94			377
Total provision for income taxes	$	12		$	93		$	269