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Armada Hoffler Reports Third Quarter 2023 Results

Armada Hoffler Properties, Inc.
Armada Hoffler Properties, Inc.

Net Income of $0.06 Per Diluted Share

Normalized FFO of $0.31 Per Diluted Share

Same Store NOI Growth of 4.4% (GAAP) and 5.9% (Cash)

Positive Renewal Spreads on Commercial Leases of 14.5% (GAAP) and 4.9% (Cash)

Maintained 2023 Full-Year Normalized FFO Guidance Range of $1.23 to $1.27 Per Diluted Share

VIRGINIA BEACH, Va., Nov. 02, 2023 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (NYSE: AHH) today announced its results for the quarter ended September 30, 2023 and provided an update on current events.

Third Quarter and Recent Highlights:

  • Net income attributable to common stockholders and OP Unit holders of $5.3 million, or $0.06 per diluted share, compared to $33.9 million, or $0.38 per diluted share, for the three months ended September 30, 2022.

  • Funds from operations attributable to common stockholders and OP Unit holders ("FFO") of $27.6 million, or $0.31 per diluted share, compared to $22.7 million, or $0.26 per diluted share, for the three months ended September 30, 2022. See "Non-GAAP Financial Measures."

  • Normalized funds from operations attributable to common stockholders and OP Unit holders ("Normalized FFO") of $27.7 million, or $0.31 per diluted share, compared to $25.8 million, or $0.29 per diluted share, for the three months ended September 30, 2022. See "Non-GAAP Financial Measures."

  • Maintained the Company's previous guidance range for 2023 full-year Normalized FFO of $1.23 to $1.27 per diluted share.

  • Maintained a 97% weighted average portfolio occupancy as of September 30, 2023. Retail occupancy was 98%, office occupancy was 96%, and multifamily occupancy was 96%.

  • Third quarter commercial lease renewal spreads increased 14.5% on a GAAP basis and 4.9% on a cash basis.

  • Same Store NOI increased 4.4% on a GAAP basis and 5.9% on a cash basis compared to the quarter ended September 30, 2022:

    • Retail Same Store NOI increased 6.6% on a GAAP basis and 6.4% on a cash basis.

    • Office Same Store NOI increased 2.3% on a GAAP basis and 8.1% on a cash basis.

    • Multifamily Same Store NOI increased 3.1% on a GAAP basis and 2.2% on a cash basis.

  • Third-party construction backlog as of September 30, 2023 was $513.6 million and construction gross profit for the third quarter was $3.3 million.

“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.”

Financial Results

Net income attributable to common stockholders and OP Unit holders for the third quarter decreased to $5.3 million compared to $33.9 million for the third quarter of 2022. The period-over-period change was primarily due to gains recognized on dispositions in the third quarter of 2022. The decrease was partially offset by an increase in property net operating income primarily due to acquisitions, positive releasing spreads, same store NOI growth, and higher general contracting gross profit.

FFO attributable to common stockholders and OP Unit holders for the third quarter increased to $27.6 million compared to $22.7 million for the third quarter of 2022. Normalized FFO attributable to common stockholders and OP Unit holders for the third quarter increased to $27.7 million compared to $25.8 million for the third quarter of 2022. The period-over-period increases in FFO and Normalized FFO were 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.

Operating Performance

At the end of the third quarter, the Company’s retail, office, and multifamily stabilized operating property portfolios were 98.1%, 96.1%, and 96.0% occupied, respectively.

Total construction contract backlog was $513.6 million as of September 30, 2023.

Interest income from real estate financing investments was $3.5 million for the three months ended September 30, 2023.

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. Total debt outstanding excludes GAAP adjustments and deferred financing costs. Approximately 74% of the Company’s debt had fixed interest rates or was subject to interest rate swaps as of September 30, 2023. The Company’s debt was 95% fixed or economically hedged as of September 30, 2023 after considering interest rate caps.

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 following table updates the Company's assumptions underpinning its full-year guidance. The Company's executive management will provide further details regarding its 2023 earnings guidance during today's webcast and conference call.

Full-year 2023 Guidance [1]

 

Expected Ranges

Portfolio NOI

 

$161.1M

 

$161.9M

Construction Segment Gross Profit

 

$11.8M

 

$12.8M

G&A Expenses

 

$17.8M

 

$18.4M

Interest Income

 

$14.5M

 

$14.9M

Interest Expense[2]

 

$47.2M

 

$47.8M

Normalized FFO per diluted share

 

$

1.23

 

$

1.27

[1] Ranges exclude certain items per the Company's Normalized FFO definition: Normalized FFO excludes certain items, including debt extinguishment losses, acquisition, development and other pursuit costs, mark-to-market adjustments for interest rate derivatives, provision for non-cash unrealized credit losses, certain costs for interest rate caps designated as cash flow hedges, amortization of right-of-use assets attributable to finance leases, severance related costs, and other non-comparable items. See "Non-GAAP Financial Measures." The Company does not provide a reconciliation for its guidance range of Normalized FFO per diluted share to net income per diluted share, the most directly comparable forward-looking GAAP financial measure, because it is unable to provide a meaningful or accurate estimate of reconciling items and the information is not available without unreasonable effort as a result of the inherent difficulty of forecasting the timing and/or amounts of various items that would impact net income per diluted share. For the same reasons, the Company is unable to address the probable significance of the unavailable information and believes that providing a reconciliation for its guidance range of Normalized FFO per diluted share would imply a degree of precision for its forward-looking net income per diluted share that could be misleading to investors.
[2] Includes the interest expense on finance leases and interest receipts of non-designated derivatives.

Supplemental Financial Information

Further details regarding operating results, properties, and leasing statistics can be found in the Company’s supplemental financial package available on the Investors page at ArmadaHoffler.com.

Webcast and Conference Call

The Company will host a webcast and conference call on Thursday, November 2, 2023 at 8:30 a.m. Eastern Time to review financial results and discuss recent events. The live webcast will be available through the Investors page of the Company’s website, ArmadaHoffler.com. To participate in the call, please dial (+1) 888 396 8049 (toll-free dial-in number) or (+1) 416 764 8646 (toll dial-in number). The conference ID is 79880370. A replay of the conference call will be available through Saturday, December 2, 2023 by dialing (+1) 877 674 7070 (toll-free dial-in number) or (+1) 416 764 8692 (toll dial-in number) and providing passcode 880370#.

About Armada Hoffler Properties, Inc.

Armada Hoffler (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust with over four decades of experience developing, building, acquiring, and managing high-quality retail, office, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. The Company also provides general construction and development services to third-party clients, in addition to developing and building properties to be placed in their stabilized portfolio. Founded in 1979 by Daniel A. Hoffler, Armada Hoffler has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information visit ArmadaHoffler.com.

Forward-Looking Statements

Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These forward-looking statements may include comments relating to the current and future performance of the Company’s operating property portfolio, the Company’s development pipeline, the Company's real estate financing program, the Company’s construction and development business, including backlog and timing of deliveries and estimated costs, financing activities, as well as acquisitions, dispositions, and the Company’s financial outlook, guidance, and expectations. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise, and the Company may not be able to realize any forward-looking statement. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and the other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company's expectations with regard thereto, or any other change in events, conditions, or circumstances on which any such statement is based, except to the extent otherwise required by applicable law.

Non-GAAP Financial Measures

The Company calculates FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts ("Nareit"). Nareit defines FFO as net income (loss) (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains or losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.

FFO is a supplemental non-GAAP financial measure. The Company uses FFO as a supplemental performance measure because it believes that FFO is beneficial to investors as a starting point in measuring the Company’s operational performance. Specifically, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, which do not relate to or are not indicative of operating performance, FFO provides a performance measure that, when compared period-over-period, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare the Company’s operating performance with that of other REITs.

However, because FFO excludes depreciation and amortization and captures neither the changes in the value of the Company’s properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of the Company’s properties, all of which have real economic effects and could materially impact the Company’s results from operations, the utility of FFO as a measure of the Company’s performance is limited. In addition, other equity REITs may not calculate FFO in accordance with the Nareit definition as the Company does, and, accordingly, the Company’s FFO may not be comparable to such other REITs’ FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of the Company’s performance. FFO should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or service indebtedness. Also, FFO should not be used as a supplement to or substitute for cash flow from operating activities computed in accordance with GAAP.

Management also believes that the computation of FFO in accordance with Nareit’s definition includes certain items that are not indicative of the results provided by the Company’s operating property portfolio and affect the comparability of the Company’s period-over-period performance. Accordingly, management believes that Normalized FFO is a more useful performance measure that excludes certain items, including but not limited to, debt extinguishment losses and prepayment penalties, impairment and accelerated amortization of intangible assets and liabilities, property acquisition, development and other pursuit costs, mark-to-market adjustments for interest rate derivatives not designated as cash flow hedges, amortization of payments made to purchase interest rate caps designated as cash flow hedges, provision for unrealized non-cash credit losses, amortization of right-of-use assets attributable to finance leases, severance related costs, and other non-comparable items. Other equity REITs may not calculate Normalized FFO in the same manner as we do, and, accordingly, our Normalized FFO may not be comparable to such other REITs' Normalized FFO.

NOI is the measure used by the Company’s chief operating decision-maker to assess segment performance. The Company calculates NOI as property revenues (base rent, expense reimbursements, termination fees and other revenue) less property expenses (rental expenses and real estate taxes). NOI is not a measure of operating income or cash flows from operating activities as measured in accordance with GAAP and is not indicative of cash available to fund cash needs. As a result, NOI should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate NOI in the same manner. The Company considers NOI to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of the Company’s real estate and construction businesses. To calculate NOI on a cash basis, we adjust NOI to exclude the net effects of straight line rent and the amortization of lease incentives and above/below market rents.

For reference, as an aid in understanding the Company’s computation of NOI, NOI Cash Basis, FFO and Normalized FFO, a reconciliation of net income calculated in accordance with GAAP to NOI, NOI Cash Basis, FFO and Normalized FFO has been included further in this release.


ARMADA HOFFLER PROPERTIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)

 

September 30, 2023

 

December 31, 2022

 

(Unaudited)

 

 

ASSETS

 

 

 

Real estate investments:

 

 

 

Income producing property

$

2,089,170

 

 

$

1,884,214

 

Held for development

 

6,294

 

 

 

6,294

 

Construction in progress

 

91,127

 

 

 

53,067

 

 

 

2,186,591

 

 

 

1,943,575

 

Accumulated depreciation

 

(376,449

)

 

 

(329,963

)

Net real estate investments

 

1,810,142

 

 

 

1,613,612

 

Cash and cash equivalents

 

32,662

 

 

 

48,139

 

Restricted cash

 

2,343

 

 

 

3,726

 

Accounts receivable, net

 

43,800

 

 

 

39,186

 

Notes receivable, net

 

83,713

 

 

 

136,039

 

Construction receivables, including retentions, net

 

87,295

 

 

 

70,822

 

Construction contract costs and estimated earnings in excess of billings

 

440

 

 

 

342

 

Equity method investments

 

125,672

 

 

 

71,983

 

Operating lease right-of-use assets

 

23,152

 

 

 

23,350

 

Finance lease right-of-use assets

 

92,570

 

 

 

45,878

 

Acquired lease intangible assets

 

127,020

 

 

 

103,870

 

Other assets

 

104,275

 

 

 

85,363

 

Total Assets

$

2,533,084

 

 

$

2,242,310

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

Indebtedness, net

$

1,321,792

 

 

$

1,068,261

 

Accounts payable and accrued liabilities

 

31,604

 

 

 

26,839

 

Construction payables, including retentions

 

108,107

 

 

 

93,472

 

Billings in excess of construction contract costs and estimated earnings

 

23,127

 

 

 

17,515

 

Operating lease liabilities

 

31,573

 

 

 

31,677

 

Finance lease liabilities

 

93,419

 

 

 

46,477

 

Other liabilities

 

56,818

 

 

 

54,055

 

Total Liabilities

 

1,666,440

 

 

 

1,338,296

 

Total Equity

 

866,644

 

 

 

904,014

 

Total Liabilities and Equity

$

2,533,084

 

 

$

2,242,310

 


ARMADA HOFFLER PROPERTIES, INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share amounts)

 

Three Months Ended 
September 30,

 

Nine Months Ended 
September 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(Unaudited)

Revenues

 

 

 

 

 

 

 

Rental revenues

$

62,913

 

 

$

53,743

 

 

$

179,082

 

 

$

163,602

 

General contracting and real estate services revenues

 

99,408

 

 

 

69,024

 

 

 

286,220

 

 

 

138,947

 

Interest income

 

3,690

 

 

 

3,490

 

 

 

10,823

 

 

 

10,410

 

Total revenues

 

166,011

 

 

 

126,257

 

 

 

476,125

 

 

 

312,959

 

Expenses

 

 

 

 

 

 

 

Rental expenses

 

14,756

 

 

 

12,747

 

 

 

41,392

 

 

 

38,101

 

Real estate taxes

 

5,867

 

 

 

5,454

 

 

 

16,910

 

 

 

16,695

 

General contracting and real estate services expenses

 

96,095

 

 

 

66,252

 

 

 

276,336

 

 

 

133,491

 

Depreciation and amortization

 

22,462

 

 

 

17,527

 

 

 

60,808

 

 

 

54,865

 

Amortization of right-of-use assets - finance leases

 

425

 

 

 

278

 

 

 

1,049

 

 

 

833

 

General and administrative expenses

 

4,286

 

 

 

3,854

 

 

 

13,786

 

 

 

12,179

 

Acquisition, development and other pursuit costs

 

 

 

 

 

 

 

18

 

 

 

37

 

Impairment charges

 

5

 

 

 

 

 

 

107

 

 

 

333

 

Total expenses

 

143,896

 

 

 

106,112

 

 

 

410,406

 

 

 

256,534

 

Gain on real estate dispositions, net

 

227

 

 

 

33,931

 

 

 

738

 

 

 

53,424

 

Operating income

 

22,342

 

 

 

54,076

 

 

 

66,457

 

 

 

109,849

 

Interest expense

 

(15,444

)

 

 

(10,345

)

 

 

(41,375

)

 

 

(28,747

)

Loss on extinguishment of debt

 

 

 

 

(2,123

)

 

 

 

 

 

(2,899

)

Change in fair value of derivatives and other

 

2,466

 

 

 

782

 

 

 

5,024

 

 

 

7,512

 

Unrealized credit loss (provision) release

 

(694

)

 

 

42

 

 

 

(871

)

 

 

(858

)

Other income (expense), net

 

63

 

 

 

118

 

 

 

324

 

 

 

415

 

Income before taxes

 

8,733

 

 

 

42,550

 

 

 

29,559

 

 

 

85,272

 

Income tax (provision) benefit

 

(310

)

 

 

(181

)

 

 

(834

)

 

 

140

 

Net income

 

8,423

 

 

 

42,369

 

 

 

28,725

 

 

 

85,412

 

Net income attributable to noncontrolling interests in investment entities

 

(193

)

 

 

(5,583

)

 

 

(616

)

 

 

(5,811

)

Preferred stock dividends

 

(2,887

)

 

 

(2,887

)

 

 

(8,661

)

 

 

(8,661

)

Net income attributable to common stockholders and OP Unitholders

$

5,343

 

 

$

33,899

 

 

$

19,448

 

 

$

70,940

 


ARMADA HOFFLER PROPERTIES, INC.
RECONCILIATION OF NET INCOME TO FFO & NORMALIZED FFO
(in thousands, except per share amounts)

 

Three Months Ended 
September 30,

 

Nine Months Ended 
September 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

(Unaudited)

Net income attributable to common stockholders and OP Unitholders

$

5,343

 

 

$

33,899

 

 

$

19,448

 

 

$

70,940

 

Depreciation and amortization (1)

 

22,239

 

 

 

17,290

 

 

 

60,139

 

 

 

54,084

 

Gain on operating real estate dispositions, net (2)

 

 

 

 

(28,502

)

 

 

 

 

 

(47,995

)

Impairment of real estate assets

 

 

 

 

 

 

 

 

 

 

201

 

FFO attributable to common stockholders and OP Unitholders

 

27,582

 

 

 

22,687

 

 

$

79,587

 

 

$

77,230

 

Acquisition, development and other pursuit costs

 

 

 

 

 

 

 

18

 

 

 

37

 

Accelerated amortization of intangible assets and liabilities

 

5

 

 

 

 

 

 

(615

)

 

 

132

 

Loss on extinguishment of debt

 

 

 

 

2,123

 

 

 

 

 

 

2,899

 

Unrealized credit loss provision (release)

 

694

 

 

 

(42

)

 

 

871

 

 

 

858

 

Amortization of right-of-use assets - finance leases

 

425

 

 

 

278

 

 

 

1,049

 

 

 

833

 

Increase in fair value of derivatives not designated as cash flow hedges

 

(1,484

)

 

 

(782

)

 

 

(1,974

)

 

 

(7,512

)

Amortization of interest rate derivatives on designated cash flow hedges

 

513

 

 

 

1,525

 

 

 

3,598

 

 

 

2,048

 

Normalized FFO available to common stockholders and OP Unitholders

$

27,735

 

 

$

25,789

 

 

$

82,534

 

 

$

76,525

 

Net income attributable to common stockholders and OP Unitholders per diluted share and unit

$

0.06

 

 

$

0.38

 

 

$

0.22

 

 

$

0.80

 

FFO attributable to common stockholders and OP Unitholders per diluted share and unit

$

0.31

 

 

$

0.26

 

 

$

0.90

 

 

$

0.88

 

Normalized FFO attributable to common stockholders and OP Unitholders per diluted share and unit

$

0.31

 

 

$

0.29

 

 

$

0.93

 

 

$

0.87

 

Weighted average common shares and units - diluted

 

89,589

 

 

 

88,341

 

 

 

88,908

 

 

 

88,143

 

________________________________________

(1) The adjustment for depreciation and amortization for the three and nine months ended September 30, 2023 excludes $0.2 million and $0.7 million, respectively, of depreciation attributable to our joint venture partners. The adjustment for depreciation and amortization for the three and nine months ended September 30, 2022 excludes $0.2 million and $0.8 million, respectively, of depreciation attributable to our joint venture partners.

(2) The adjustment for gain on operating real estate dispositions for the three and nine months ended September 30, 2023 excludes $0.2 million for the gain on the disposition of a non-operating parcel adjacent to Brooks Crossing Retail. The adjustment for gain on operating real estate dispositions for the nine months ended September 30, 2023 also excludes $0.5 million for the gain on the disposition of a non-operating parcel at Market at Mill Creek. The adjustment for gain on operating real estate dispositions for the three and nine months ended September 30, 2022 excludes $5.4 million of the gain on The Residences at Annapolis Junction that was allocated to our partner.


ARMADA HOFFLER PROPERTIES, INC.
RECONCILIATION OF NET INCOME TO SAME STORE NOI, CASH BASIS
(in thousands) (unaudited)

 

Three Months Ended 
September 30,

 

Nine Months Ended 
September 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Retail Same Store (1)

 

 

 

 

 

 

 

Same Store NOI, Cash Basis

 

15,761

 

 

 

14,818

 

 

 

46,602

 

 

 

44,139

 

GAAP Adjustments (2)

 

962

 

 

 

869

 

 

 

2,999

 

 

 

2,767

 

Same Store NOI

 

16,723

 

 

 

15,687

 

 

 

49,601

 

 

 

46,906

 

Non-Same Store NOI (3)

 

2,698

 

 

 

(90

)

 

 

4,899

 

 

 

322

 

Segment NOI

 

19,421

 

 

 

15,597

 

 

 

54,500

 

 

 

47,228

 

 

 

 

 

 

 

 

 

Office Same Store (4)

 

 

 

 

 

 

 

Same Store NOI, Cash Basis

$

11,556

 

 

$

10,693

 

 

$

19,005

 

 

$

19,340

 

GAAP Adjustments (2)

 

717

 

 

 

1,307

 

 

 

178

 

 

 

302

 

Same Store NOI

 

12,273

 

 

 

12,000

 

 

 

19,183

 

 

 

19,642

 

Non-Same Store NOI (3)

 

1,617

 

 

 

(243

)

 

 

20,167

 

 

 

15,173

 

Segment NOI

 

13,890

 

 

 

11,757

 

 

 

39,350

 

 

 

34,815

 

 

 

 

 

 

 

 

 

Multifamily Same Store (5)

 

 

 

 

 

 

 

Same Store NOI, Cash Basis

 

7,979

 

 

 

7,807

 

 

 

20,420

 

 

 

19,638

 

GAAP Adjustments (2)

 

293

 

 

 

214

 

 

 

761

 

 

 

639

 

Same Store NOI

 

8,272

 

 

 

8,021

 

 

 

21,181

 

 

 

20,277

 

Non-Same Store NOI (3)

 

707

 

 

 

167

 

 

 

5,749

 

 

 

6,486

 

Segment NOI

 

8,979

 

 

 

8,188

 

 

 

26,930

 

 

 

26,763

 

 

 

 

 

 

 

 

 

Total Property NOI

 

42,290

 

 

 

35,542

 

 

 

120,780

 

 

 

108,806

 

 

 

 

 

 

 

 

 

General contracting & real estate services gross profit

 

3,313

 

 

 

2,772

 

 

 

9,884

 

 

 

5,456

 

Real estate financing gross profit

 

2,768

 

 

 

2,532

 

 

 

7,623

 

 

 

7,588

 

Interest income (6)

 

194

 

 

 

118

 

 

 

566

 

 

 

340

 

Depreciation and amortization

 

(22,462

)

 

 

(17,527

)

 

 

(60,808

)

 

 

(54,865

)

Amortization of right-of-use assets - finance leases

 

(425

)

 

 

(278

)

 

 

(1,049

)

 

 

(833

)

General and administrative expenses

 

(4,286

)

 

 

(3,854

)

 

 

(13,786

)

 

 

(12,179

)

Acquisition, development and other pursuit costs

 

 

 

 

 

 

 

(18

)

 

 

(37

)

Impairment charges

 

(5

)

 

 

 

 

 

(107

)

 

 

(333

)

Gain on real estate dispositions, net

 

227

 

 

 

33,931

 

 

 

738

 

 

 

53,424

 

Interest expense (7)

 

(14,716

)

 

 

(9,505

)

 

 

(38,741

)

 

 

(26,265

)

Loss on extinguishment of debt

 

 

 

 

(2,123

)

 

 

 

 

 

(2,899

)

Change in fair value of derivatives and other

 

2,466

 

 

 

782

 

 

 

5,024

 

 

 

7,512

 

Unrealized credit loss (provision) release

 

(694

)

 

 

42

 

 

 

(871

)

 

 

(858

)

Other income (expense), net

 

63

 

 

 

118

 

 

 

324

 

 

 

415

 

Income tax (provision) benefit

 

(310

)

 

 

(181

)

 

 

(834

)

 

 

140

 

Net income

 

8,423

 

 

 

42,369

 

 

 

28,725

 

 

 

85,412

 

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling interests in investment entities

 

(193

)

 

 

(5,583

)

 

 

(616

)

 

 

(5,811

)

Preferred stock dividends

 

(2,887

)

 

 

(2,887

)

 

 

(8,661

)

 

 

(8,661

)

Net income attributable to AHH and OP unitholders

$

5,343

 

 

$

33,899

 

 

$

19,448

 

 

$

70,940

 

________________________________________

(1) Retail same-store portfolio excludes Pembroke Square, The Interlock Retail, and Columbus Village II for the three and nine months ended September 30, 2023 and 2022.

(2) GAAP Adjustments include adjustments for straight-line rent, termination fees, deferred rent, recoveries of deferred rent, and amortization of lease incentives.

(3) Includes expenses associated with the Company's in-house asset management division.

(4) Office same-store portfolio excludes The Interlock Office for the three and nine months ended September 30, 2023 and 2022. Office same-store portfolio also excludes Wills Wharf and the Constellation Office for the nine months ended September 30, 2023 and 2022.

(5) Multifamily same-store portfolio excludes Chronicle Mill, The Residences of Annapolis Junction, Hoffler Place, and Summit Place for the three and nine months ended September 30, 2023 and 2022. Multifamily same-store portfolio also excludes 1305 Dock Street and The Everly for the nine months ended September 30, 2023 and 2022.

(6) Excludes real estate financing segment interest income.

(7) Excludes real estate financing segment interest expense.

Contact:

Chelsea Forrest
Armada Hoffler
Director of Corporate Communications and Investor Relations
Email: CForrest@ArmadaHoffler.com
Phone: (757) 612-4248


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