Armada Hoffler Properties Inc (AHH) Reports Q3 2023 Earnings, Net Income Drops to $0.06 Per Share
Armada Hoffler Properties Inc (NYSE:AHH) reported a net income of $0.06 per diluted share in Q3 2023, down from $0.38 in the same period last year.
The company's Normalized FFO stood at $0.31 per diluted share, compared to $0.29 per diluted share in Q3 2022.
AHH maintained its 2023 full-year Normalized FFO guidance range of $1.23 to $1.27 per diluted share.
Same Store NOI Growth of 4.4% (GAAP) and 5.9% (Cash) was reported.
Armada Hoffler Properties Inc (NYSE:AHH) released its Q3 2023 earnings report on November 2, 2023. The company reported a net income of $0.06 per diluted share, a significant decrease from $0.38 per diluted share for the same period in 2022. The decrease was primarily due to gains recognized on dispositions in the third quarter of 2022.
Financial Highlights
The company's Normalized FFO for Q3 2023 was $27.7 million, or $0.31 per diluted share, compared to $25.8 million, or $0.29 per diluted share, for the same period in 2022. The increase in FFO and Normalized FFO was due to an increase in property net operating income primarily due to acquisitions, positive releasing spreads, same store NOI growth, and higher general contracting gross profit, partially offset by higher interest expense.
Armada Hoffler Properties Inc (NYSE:AHH) maintained its 2023 full-year Normalized FFO guidance range of $1.23 to $1.27 per diluted share. The company's retail, office, and multifamily stabilized operating property portfolios were 98.1%, 96.1%, and 96.0% occupied, respectively, at the end of the third quarter.
Balance Sheet and Financing Activity
As of September 30, 2023, the company had $1.3 billion of total debt outstanding, including $200 million outstanding under its revolving credit facility. Approximately 74% of the companys debt had fixed interest rates or was subject to interest rate swaps as of September 30, 2023. The companys debt was 95% fixed or economically hedged as of September 30, 2023 after considering interest rate caps.
CEO Commentary
Our vertically integrated business model continues to prove advantageous in most any economic climate and our best-in-market properties yielded impressive results for yet another quarter, said Louis Haddad, President & CEO of Armada Hoffler. Our ability to execute among several lines of business gives us an ability to preserve earnings growth while making the right real estate decisions for the long-term. We fully intend to continue adding to earnings and dividends in 2024 as we anticipate the market will eventually recognize superior out-performance in the commercial real estate sector.
Outlook
The company maintained its 2023 full-year Normalized FFO guidance range at the Company's previous guidance range of $1.23 to $1.27 per diluted share. The company's executive management will provide further details regarding its 2023 earnings guidance during today's webcast and conference call.
Explore the complete 8-K earnings release (here) from Armada Hoffler Properties Inc for further details.
This article first appeared on GuruFocus.
