Segment Reporting

12 Months Ended

Dec. 31, 2019

12. 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.

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

	As of or for the Year Ended December 31, 2019
	Core Portfolio			Funds			Structured Financing		Unallocated			Total
Revenues	$	173,177		$	122,150		$	—	$	—		$	295,327
Depreciation and amortization		(61,819	)		(63,624	)		—		—			(125,443	)
Property operating expenses, other operating and real estate taxes		(47,032	)		(43,436	)		—		—			(90,468	)
General and administrative expenses		—			—			—		(35,416	)		(35,416	)
Impairment charge		—			(1,721	)		—		—			(1,721	)
Gain on disposition of properties		16,771			13,553			—		—			30,324
Operating income		81,097			26,922			—		(35,416	)		72,603
Interest income		—			—			7,988		—			7,988
Equity in earnings of unconsolidated affiliates inclusive of gains on disposition of properties		9,020			(98	)		—		—			8,922
Interest expense		(28,304	)		(45,484	)		—		—			(73,788	)
Other income		327			6,620			—		—			6,947
Income tax provision		—			—			—		(1,468	)		(1,468	)
Net income (loss)		62,140			(12,040	)		7,988		(36,884	)		21,204
Net loss attributable to noncontrolling interests		337			31,504			—		—			31,841
Net income attributable to Acadia^(a)	$	62,477		$	19,464		$	7,988	$	(36,884	)	$	53,045

Real estate at cost ^(b)	$	2,264,010		$	1,835,532		$	—	$	—		$	4,099,542
Total Assets ^(b)	$	2,350,833		$	1,843,338		$	114,943	$	—		$	4,309,114
Cash paid for acquisition of real estate and leasehold interest	$	173,892		$	184,812		$	—	$	—		$	358,704
Cash paid for development and property improvement costs	$	22,724		$	66,546		$	—	$	—		$	89,270

	As of or for the Year Ended December 31, 2018
	Core Portfolio			Funds			Structured Financing		Unallocated			Total
Revenues	$	166,816		$	92,865		$	—	$	—		$	259,681
Depreciation and amortization		(60,903	)		(56,646	)		—		—			(117,549	)
Property operating expenses, other operating and real estate taxes		(44,060	)		(36,188	)		—		—			(80,248	)
General and administrative expenses		—			—			—		(34,343	)		(34,343	)
Gain on disposition of properties		—			5,140			—		—			5,140
Operating income		61,853			5,171			-		(34,343	)		32,681
Interest income		—			—			13,231		—			13,231
Equity in earnings of unconsolidated affiliates inclusive of gains on disposition of properties		7,415			1,887			—		—			9,302
Interest expense		(27,575	)		(42,403	)		—		—			(69,978	)
Income tax provision		—			—			—		(934	)		(934	)
Net income (loss)		41,693			(35,345	)		13,231		(35,277	)		(15,698	)
Net income attributable to noncontrolling interests		752			46,385			—		—			47,137
Net income attributable to Acadia^(a)	$	42,445		$	11,040		$	13,231	$	(35,277	)	$	31,439

Real estate at cost ^(b)	$	2,069,439		$	1,628,366		$	—	$	—		$	3,697,805
Total Assets ^(b)	$	2,232,695		$	1,616,472		$	109,613	$	—		$	3,958,780
Cash paid for acquisition of real estate	$	1,343		$	146,642		$	—	$	—		$	147,985
Cash paid for development and property improvement costs	$	32,662		$	62,172		$	—	$	—		$	94,834

	As of or for the Year Ended December 31, 2017
	Core Portfolio			Funds			Structured Financing		Unallocated			Total
Revenues	$	168,795		$	79,757		$	—	$	—		$	248,552
Depreciation and amortization		(61,705	)		(43,229	)		—		—			(104,934	)
Property operating expenses, other operating and real estate taxes		(44,169	)		(33,919	)		—		—			(78,088	)
General and administrative expenses		—			—			—		(33,756	)		(33,756	)
Impairment charge		—			(14,455	)		—		—			(14,455	)
Gain on disposition of properties		—			48,886			—		—			48,886
Operating income		62,921			37,040			—		(33,756	)		66,205
Interest income		—			—			29,143		—			29,143
Equity in earnings of unconsolidated affiliates inclusive of gains on disposition of properties		3,735			19,636			—		—			23,371
Interest expense		(28,618	)		(30,360	)		—		—			(58,978	)
Other income		5,571			—			—		—			5,571
Income tax provision		—			—			—		(1,004	)		(1,004	)
Net income		43,609			26,316			29,143		(34,760	)		64,308
Net income attributable to noncontrolling interests		(1,107	)		(1,731	)		—		—			(2,838	)
Net income attributable to Acadia^(a)	$	42,502		$	24,585		$	29,143	$	(34,760	)	$	61,470

Cash paid for acquisition of real estate	$	—		$	200,429		$	—	$	—		$	200,429
Cash paid for development and property improvement costs	$	42,026		$	66,116		$	—	$	—		$	108,142

(a)

Net income attributable to Acadia for the Core segment includes $4.7 million, $4.1 million and $0.9 million associated with one property, Town Center, for the years ended December 31, 2019, 2018 and 2017, respectively. These amounts include the results of three entities, including the unconsolidated Town Center venture and the consolidated Brandywine Holdings (Note 4) and Brandywine Maintenance Corp., which on a combined basis constitute the operating results of the shopping center.

(b)

Real estate at cost and total assets for the Funds segment include $603.3 million and $576.1 million, or $174.7 million and $167.2 million net of non-controlling interests, related to Fund II’s City Point property for the years ended December 31, 2019 and 2018, respectively.