Has N-acetylated-alpha-linked-acidic dipeptidase (NAALADase) activity. Also exhibits a dipeptidyl-peptidase IV type activity. Inactivates the peptide neurotransmitter N-acetylaspartylglutamate. . This is the function of Ensembl gene identifier ENSG00000077616 (NAALAD2, N-acetylated alpha-linked acidic dipeptidase 2).