Acadia Realty Trust believes it is “very well-positioned” to deal with mounting headwinds in the retail real estate market, Ken Bernstein, Acadia’s president and chief executive officer, said on the retail-focused real estate investment trust’s first quarter earnings call Tuesday.
Bernstein struck defiant tones in discussing the challenges facing retail landlords and Acadia’s position in an asset sector that has recently been characterized by rising vacancies, declining rents and store closures nationally. He noted “a flood of news about the demise of retailing and retail real estate,” adding that “while there’s reason for legitimate concern, there is too much overgeneralization going on” about the current state of the retail market.
“We’re currently experiencing a convergence of typical, cyclical headwinds,” Bernstein said, citing the impact of “once-strong retailers losing their edge” in an increasingly fragmented business environment, as well as the “continued growth of e-commerce” eating away at traditional brick-and-mortar businesses.
But while noting that “no product type is bulletproof, recession-proof or Amazon-proof,” the CEO pointed out that “retail has always been Darwinian and always been cyclical,” and said that Acadia believes it is insulating itself from the current cycle through both its investment decisions and its position in core urban markets.
The landlord “has the kind of locations that should outperform as some of these trends play out,” Bernstein…