Armada Hoffler Properties Provides Update on Monthly Rent Collections
Armada Hoffler Properties (NYSE: AHH) reported improved rent collections for June 2020, achieving 87% as of June 19, compared to 85% in May and 84% in April. Nearly 90% of retail tenants are operational, and the company has engaged with over 95% of commercial tenants for rent relief. CEO Louis Haddad expressed optimism for June rent collection to exceed 90%, alongside solid construction profits expected in the third quarter. The company anticipates discussing the third-quarter dividend at its next board meeting if this positive trend continues.
- Rent collections for June 2020 improved to 87% compared to 85% in May and 84% in April.
- Nearly 90% of retail tenants are operational.
- The company expects to collect over 90% of rents for June across its entire portfolio.
- Solid construction profits anticipated due to high production rates in the third-party general contracting business.
- None.
VIRGINIA BEACH, Va., June 23, 2020 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (NYSE: AHH) today provided an update on rent collections for the second quarter. As of June 19, the Company’s portfolio rent collections for June were already
Nearly
“As anticipated, the positive momentum that we experienced last month has carried over into June and our rent collections for the quarter continue to improve,” said Louis Haddad, President and Chief Executive Officer. “As of the middle of the month, virtually all of our office tenants have already paid June rent and, consistent with the previous two months, we expect to collect nearly all of our apartment rents by the end the month. Ultimately, we anticipate collecting over
Monthly rent collections for the second quarter by tenant type and in the aggregate across the Company’s portfolio are presented in the below table:
| Rent Collected as a % of Monthly Billings | |||
| 25%; width: Tenant Type(1) | 25%; width: April 2020 | 25%; width: May 2020 | 25%; width: June 19, 2020 |
| Office | |||
| Multifamily | |||
| Retail | |||
| Portfolio | |||
| (1) May differ from financial reporting segment groupings for tenants in mixed-use properties. |
About Armada Hoffler Properties, Inc.
Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. Founded in 1979 by Daniel A. Hoffler, the Company 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 statements. When used, the words "anticipate," "believe," "expect," "intend," "may," "might," "plan," "estimate," "project," "should," "will," "result," and similar expressions, which do not relate solely to historical matters, are intended to identify forward-looking statements. Forwarding-looking statements may include, but are not limited to, comments relating to the Company’s development pipeline, the timing of future dividend payments, if any, the Company’s construction and development businesses, including backlog, timing of deliveries and estimated costs, and the Company’s expectations and projections, including estimated rent collections, the estimated construction segment gross profit range, projected mezzanine loan interest income and expected financing activities such as issuances under the Company’s at-the-market equity offering program. The Company’s actual future results and trends may differ materially from expectations depending on a variety of factors discussed in the Company’s filings with the Securities and Exchange Commission (the “SEC”). These factors include, without limitation: (a) the impact of the coronavirus (COVID-19) pandemic on macroeconomic conditions and economic conditions in the markets in which the Company operates, including, among others: (i) disruptions in, or a lack of access to, the capital markets or disruptions in the Company’s ability to borrow amounts subject to existing construction loan commitments; (ii) adverse impacts to the Company’s tenants’ and other third parties’ businesses and financial condition that adversely affect the ability and willingness of the Company’s tenants and other third parties to satisfy their rent and other obligations to the Company, including deferred rent; (iii) the ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration of the leases or to re-lease the Company’s properties on the same or better terms in the event of nonrenewal or early termination of existing leases; and (iv) federal, state and local government initiatives to mitigate the impact of the COVID-19 pandemic, including additional restrictions on business activities, shelter-in-place orders and other restrictions, and the timing and amount of economic stimulus or other initiatives; (b) the Company’s ability to continue construction on development and construction projects, in each case on the timeframes and on terms currently anticipated; (c) the Company’s ability to accurately assess and predict the impact of the COVID-19 pandemic on the amount and timing of rent collections, results of operations, financial condition, acquisition and disposition activities and growth opportunities; (d) the Company’s ability to maintain compliance with the covenants under its existing debt agreements or to obtain modifications to such covenants from the applicable lenders; and (e) the information under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and in other filings the Company makes from time to time with the SEC, including the Company’s Current Report on Form 8-K filed with the SEC on April 2, 2020.
Contact:
Michael P. O’Hara
Armada Hoffler Properties, Inc.
Chief Financial Officer, Treasurer, and Secretary
Email: MOHara@ArmadaHoffler.com
Phone: (757) 366-6684
FAQ
What is the current rent collection percentage for Armada Hoffler (NYSE: AHH) as of June 2020?
How many retail tenants are operational for Armada Hoffler (NYSE: AHH)?
What is Armada Hoffler's expectation for rent collections by the end of June 2020?
What construction business performance is anticipated by Armada Hoffler (NYSE: AHH) for the third quarter?
Will Armada Hoffler (NYSE: AHH) discuss dividend payments in the upcoming board meeting?
