Armada Hoffler Reports First Quarter 2025 Results
Armada Hoffler Properties (NYSE: AHH) reported its Q1 2025 results, posting a GAAP net loss of $(0.07) per diluted share, compared to net income of $0.17 per share in Q1 2024. The company delivered Normalized FFO of $0.25 per diluted share, down from $0.33 in the prior year. Portfolio performance remained strong with 95.7% weighted average occupancy across segments (Retail: 94.5%, Office: 97.5%, Multifamily: 95.0%).
Notable achievements include office same-store NOI growth of 9.2% and positive leasing spreads across commercial segments, with retail renewals at 11.0% (GAAP) and office renewals at 23.3% (GAAP). The company executed 42 commercial leases totaling 313,000 square feet. Armada Hoffler maintained its 2025 full-year Normalized FFO guidance range of $1.00 to $1.10 per diluted share.
Armada Hoffler Properties (NYSE: AHH) ha comunicato i risultati del primo trimestre 2025, registrando una perdita netta GAAP di $(0,07) per azione diluita, rispetto a un utile netto di $0,17 per azione nel primo trimestre 2024. La società ha riportato un FFO Normalizzato di $0,25 per azione diluita, in calo rispetto ai $0,33 dell'anno precedente. La performance del portafoglio è rimasta solida con un tasso di occupazione medio ponderato del 95,7% tra i vari segmenti (Retail: 94,5%, Uffici: 97,5%, Multifamily: 95,0%).
Tra i risultati più rilevanti si evidenzia una crescita del NOI same-store degli uffici del 9,2% e spread di locazione positivi nei segmenti commerciali, con rinnovi retail all’11,0% (GAAP) e rinnovi uffici al 23,3% (GAAP). La società ha firmato 42 contratti di locazione commerciale per un totale di 313.000 piedi quadrati. Armada Hoffler ha confermato la guidance sul FFO Normalizzato per l’intero anno 2025, stimato tra $1,00 e $1,10 per azione diluita.
Armada Hoffler Properties (NYSE: AHH) reportó sus resultados del primer trimestre de 2025, registrando una pérdida neta GAAP de $(0.07) por acción diluida, en comparación con una ganancia neta de $0.17 por acción en el primer trimestre de 2024. La compañía entregó un FFO Normalizado de $0.25 por acción diluida, una disminución respecto a los $0.33 del año anterior. El desempeño del portafolio se mantuvo sólido con una ocupación promedio ponderada del 95.7% en los segmentos (Retail: 94.5%, Oficinas: 97.5%, Multifamiliar: 95.0%).
Logros destacados incluyen un crecimiento del NOI same-store en oficinas del 9.2% y spreads de arrendamiento positivos en los segmentos comerciales, con renovaciones retail al 11.0% (GAAP) y renovaciones de oficinas al 23.3% (GAAP). La empresa ejecutó 42 contratos comerciales que suman 313,000 pies cuadrados. Armada Hoffler mantuvo su guía para el FFO Normalizado del año completo 2025 en un rango de $1.00 a $1.10 por acción diluida.
Armada Hoffler Properties (NYSE: AHH)는 2025년 1분기 실적을 발표하며, 희석 주당 GAAP 순손실 $(0.07)을 기록했으며, 이는 2024년 1분기 희석 주당 순이익 $0.17과 비교됩니다. 회사는 희석 주당 정상화된 FFO $0.25를 기록했으며, 이는 전년도의 $0.33에서 감소한 수치입니다. 포트폴리오 성과는 세그먼트별로 가중 평균 점유율 95.7%를 유지하며 견고했습니다(소매: 94.5%, 오피스: 97.5%, 다가구: 95.0%).
주요 성과로는 오피스 동종 점포 NOI 9.2% 성장과 상업 부문 전반에 걸친 긍정적인 임대 스프레드가 있으며, 소매 갱신률은 11.0%(GAAP), 오피스 갱신률은 23.3%(GAAP)를 기록했습니다. 회사는 총 313,000평방피트에 달하는 42건의 상업용 임대 계약을 체결했습니다. Armada Hoffler는 2025년 연간 정상화된 FFO 가이던스를 희석 주당 $1.00에서 $1.10 범위로 유지했습니다.
Armada Hoffler Properties (NYSE : AHH) a publié ses résultats du premier trimestre 2025, affichant une perte nette GAAP de $(0,07) par action diluée, contre un bénéfice net de 0,17 $ par action au premier trimestre 2024. La société a réalisé un FFO normalisé de 0,25 $ par action diluée, en baisse par rapport à 0,33 $ l'année précédente. La performance du portefeuille est restée solide avec un taux d'occupation moyen pondéré de 95,7 % tous segments confondus (Commerce : 94,5 %, Bureaux : 97,5 %, Multifamilial : 95,0 %).
Parmi les réalisations notables figurent une croissance du NOI same-store des bureaux de 9,2 % et des écarts de loyers positifs dans les segments commerciaux, avec des renouvellements dans le commerce à 11,0 % (GAAP) et dans les bureaux à 23,3 % (GAAP). La société a signé 42 baux commerciaux totalisant 313 000 pieds carrés. Armada Hoffler a maintenu ses prévisions de FFO normalisé pour l'ensemble de l'année 2025 dans une fourchette de 1,00 $ à 1,10 $ par action diluée.
Armada Hoffler Properties (NYSE: AHH) meldete seine Ergebnisse für das erste Quartal 2025 und verzeichnete einen GAAP-Nettogewinn von $(0,07) je verwässerter Aktie, verglichen mit einem Nettogewinn von $0,17 je Aktie im ersten Quartal 2024. Das Unternehmen erzielte ein normalisiertes FFO von $0,25 je verwässerter Aktie, was einem Rückgang gegenüber $0,33 im Vorjahr entspricht. Die Portfolioleistung blieb mit einer gewichteten durchschnittlichen Auslastung von 95,7% über alle Segmente hinweg stark (Einzelhandel: 94,5 %, Büro: 97,5 %, Mehrfamilien: 95,0 %).
Bemerkenswerte Erfolge umfassen ein 9,2% Wachstum des Same-Store-NOI im Bürobereich sowie positive Mietspreizungen in den kommerziellen Segmenten, mit Einzelhandelsverlängerungen von 11,0 % (GAAP) und Büroverlängerungen von 23,3 % (GAAP). Das Unternehmen schloss 42 Gewerbemietverträge mit insgesamt 313.000 Quadratfuß ab. Armada Hoffler bestätigte seine Prognose für das normalisierte FFO im Gesamtjahr 2025 im Bereich von $1,00 bis $1,10 je verwässerter Aktie.
- Strong occupancy rates across portfolio segments (95.7% weighted average)
- Significant office same-store NOI growth of 9.2% (GAAP)
- Positive leasing spreads in both retail (11.0% GAAP) and office (23.3% GAAP) segments
- Robust leasing activity with 313,000 square feet of new and renewed commercial leases
- 100% of debt fixed or economically hedged against interest rate fluctuations
- Net loss of $7.2 million in Q1 2025 compared to net income of $14.8 million in Q1 2024
- Normalized FFO decreased to $25.6 million from $29.4 million year-over-year
- Decline in general contracting and construction segment performance
- Construction backlog decreased to $80.4 million
- High debt level of $1.3 billion including $166 million in revolving credit facility
Insights
Armada Hoffler shows operational strength with high occupancy and positive lease spreads despite financial performance decline from Q1 2024.
Armada Hoffler's Q1 2025 results reveal a GAAP net loss of $(0.07) per diluted share, contrasting sharply with the $0.17 profit reported in Q1 2024. The company's Normalized FFO of $0.25 per share represents a 24% decline from $0.33 in the comparable period. This financial deterioration primarily stems from three factors: decreased fair value of interest rate derivatives, reduced construction segment performance, and losses from unconsolidated real estate entities.
Despite these financial headwinds, the REIT's operational metrics demonstrate remarkable resilience. The stabilized portfolio occupancy stands at 95.7% with particularly strong office occupancy at 97.5%. Most impressive are the leasing spreads, with office renewal spreads at 23.3% (GAAP) and retail renewals at 11.0% (GAAP). These robust spreads indicate substantial embedded rent growth and strong demand for their commercial spaces – a positive signal for future revenue growth.
The office same-store NOI growth of 9.2% is especially noteworthy in today's challenging office environment, suggesting Armada Hoffler's properties remain competitive and well-positioned. The company successfully executed approximately 313,000 square feet of commercial leasing activity, maintaining healthy leasing momentum.
On the construction front, the third-party construction backlog decreased to $80.4 million with quarterly gross profit of just $1.4 million, significantly contributing to the year-over-year earnings decline. The company paid a $4.6 million premium for a new interest rate swap agreement, which impacted quarterly results.
Management's decision to maintain full-year Normalized FFO guidance of $1.00-$1.10 per share suggests they view Q1 as aligned with annual expectations despite the year-over-year decline, possibly indicating anticipated improvement in coming quarters. The balance sheet shows $1.3 billion in total debt that's 100% fixed or economically hedged, providing insulation against interest rate volatility.
GAAP Net Loss of
Normalized FFO of
Office Same Store NOI Growth of
Positive Office Releasing Spreads of
Positive Retail Renewal Spreads of
Approximately 313K Net Rentable Square Feet of New and Renewed Commercial Lease Space
Maintained 2025 Full-Year Normalized FFO Guidance Range of
VIRGINIA BEACH, Va., May 07, 2025 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (NYSE: AHH) today announced its results for the quarter ended March 31, 2025 and provided an update on current events and earnings guidance.
First Quarter and Recent Highlights:
- Net loss attributable to common stockholders and OP Unit holders of
$7.2 million , or$0.07 per diluted share, compared to net income attributable to common stockholders and OP Unit holders of$14.8 million , or$0.17 per diluted share, for the three months ended March 31, 2024. - Funds from operations attributable to common stockholders and OP Unit holders ("FFO") of
$17.2 million , or$0.17 per diluted share, compared to$35.0 million , or$0.40 per diluted share, for the three months ended March 31, 2024. See "Non-GAAP Financial Measures." - Normalized funds from operations attributable to common stockholders and OP Unit holders ("Normalized FFO") of
$25.6 million , or$0.25 per diluted share, compared to$29.4 million , or$0.33 per diluted share, for the three months ended March 31, 2024. See "Non-GAAP Financial Measures." - As of March 31, 2025, weighted average stabilized portfolio occupancy was
95.7% . Retail occupancy was94.5% , office occupancy was97.5% , and multifamily occupancy was95.0% . - Positive spreads on renewals across all commercial segments:
- Retail
11.0% (GAAP) and7.4% (Cash) - Office
23.3% (GAAP) and3.7% (Cash)
- Retail
- Executed 31 commercial lease renewals and 11 new commercial leases during the first quarter for an aggregate of approximately 313,000 of net rentable square feet.
"Our portfolio continues to deliver a solid performance, reflecting the strength of our assets and disciplined approach to operations," said Shawn Tibbetts, Chief Executive Officer and President. "We are executing our strategy with focus and agility, ensuring we remain well-positioned to create long-term value in today's dynamic environment."
- Office Same Store Net Operating Income ("NOI") increased
9.2% on a GAAP basis compared to the quarter ended March 31, 2024. - Third-party construction backlog as of March 31, 2025 was
$80.4 million and general contracting and real estate services gross profit for the first quarter was$1.4 million . - During the first quarter of 2024, unrealized gains on non-designated interest rate derivatives that positively affected FFO were
$5.6 million . As of March 31, 2025, the value of the Company’s entire interest rate derivative portfolio, net of unrealized gains, was$13.1 million . These losses are excluded from Normalized FFO. - In January, the Company entered into an interest rate swap agreement with a notional of
$150.0 million and a SOFR rate of2.50% . The Company paid a$4.6 million premium for this transaction.
Financial Results
Net loss attributable to common stockholders and OP Unit holders for the first quarter was
FFO attributable to common stockholders and OP Unit holders for the first quarter was
Operating Performance
At the end of the first quarter, the Company’s retail, office, and multifamily stabilized operating property portfolios were
Total third party construction contract backlog was
Interest income from real estate financing investments was
Balance Sheet and Financing Activity
As of March 31, 2025, the Company had
Outlook
The Company maintained its 2025 full-year Normalized FFO guidance at the Company's previous guidance range of
| Full-year 2025 Guidance [1][2] | Expected Ranges | |||||
| Portfolio NOI | ||||||
| Construction Segment Gross Profit | ||||||
| G&A Expenses | ( | ( | ||||
| Interest Income | ||||||
| Adjusted Interest Expense[3] | ( | ( | ||||
| Normalized FFO per diluted share | $ | 1.00 | $ | 1.10 | ||
[1] Ranges exclude certain items per the Company ’s Normalized FFO definition: Normalized FFO excludes certain items, including 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 and swaps 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. 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 following assumptions:
- Harbor Point T. Rowe Price and Allied delivered in Q1 2025
- Construction gross profit decline due to lower backlog
- Chandler Residences stabilized in Q2 2025
[3] 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, May 8, 2025 at 8:30 a.m. Eastern Time to review financial results and discuss recent events. The recorded webcast will be available through the Investors page of the Company’s website, ArmadaHoffler.com. To participate in the call, please dial (+1) 800 549 8228 (toll-free dial-in number) or (+1) 646 564 2877 (toll dial-in number). The conference ID is 90496. A replay of the conference call will be available through Saturday, June 7, 2025 by dialing (+1) 888 660 6264 (toll-free dial-in number) or (+1) 646 517 3975 (toll dial-in number) and providing passcode 90496#.
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, 2024, 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 and swaps 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 segment revenues less segment expenses. Segment revenues include rental revenues (base rent, expense reimbursements, termination fees, and other revenue) for our property segments, general contracting and real estate services revenues for our general contracting and real estate services segment, and interest income for our real estate financing segment. Segment expenses include rental expenses and real estate taxes for our property segments, general contracting and real estate services expenses for our general contracting and real estate services segment, and interest expense for our real estate financing segment. Segment NOI for the general contracting and real estate services and real estate financing segments is also referred to as segment gross profit. 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) | |||||||
| March 31, 2025 | December 31, 2024 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Real estate investments: | |||||||
| Income producing property | $ | 2,188,204 | $ | 2,173,787 | |||
| Held for development | 5,683 | 5,683 | |||||
| Construction in progress | 13,289 | 17,515 | |||||
| 2,207,176 | 2,196,985 | ||||||
| Accumulated depreciation | (470,420 | ) | (451,907 | ) | |||
| Net real estate investments | 1,736,756 | 1,745,078 | |||||
| Real estate investments held for sale | 4,800 | 4,800 | |||||
| Cash and cash equivalents | 45,716 | 70,642 | |||||
| Restricted cash | 2,851 | 1,581 | |||||
| Accounts receivable, net | 51,895 | 52,860 | |||||
| Notes receivable, net | 139,462 | 132,565 | |||||
| Construction receivables, including retentions, net | 72,159 | 84,624 | |||||
| Construction contract costs and estimated earnings in excess of billings | 2,482 | 6 | |||||
| Equity method investments | 158,270 | 158,151 | |||||
| Operating lease right-of-use assets | 22,784 | 22,841 | |||||
| Finance lease right-of-use assets | 88,592 | 88,986 | |||||
| Acquired lease intangible assets | 86,374 | 89,739 | |||||
| Other assets | 53,085 | 60,990 | |||||
| Total Assets | 2,465,226 | 2,512,863 | |||||
| LIABILITIES AND EQUITY | |||||||
| Indebtedness, net | 1,320,552 | 1,295,559 | |||||
| Accounts payable and accrued liabilities | 25,029 | 38,840 | |||||
| Construction payables, including retentions | 76,240 | 104,495 | |||||
| Billings in excess of construction contract costs and estimated earnings | 3,444 | 5,871 | |||||
| Operating lease liabilities | 31,325 | 31,365 | |||||
| Finance lease liabilities | 92,837 | 92,646 | |||||
| Other liabilities | 47,047 | 54,418 | |||||
| Total Liabilities | 1,596,474 | 1,623,194 | |||||
| Total Equity | 868,752 | 889,669 | |||||
| Total Liabilities and Equity | $ | 2,465,226 | $ | 2,512,863 | |||
| ARMADA HOFFLER PROPERTIES, INC. CONDENSED CONSOLIDATED INCOME STATEMENTS (in thousands, except per share amounts) | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| (Unaudited) | |||||||
| Revenues | |||||||
| Rental revenues | $ | 63,801 | $ | 61,881 | |||
| General contracting and real estate services revenues | 46,614 | 126,975 | |||||
| Interest income | 4,228 | 4,626 | |||||
| Total revenues | 114,643 | 193,482 | |||||
| Expenses | |||||||
| Rental expenses | 15,624 | 14,605 | |||||
| Real estate taxes | 5,937 | 5,925 | |||||
| General contracting and real estate services expenses | 45,250 | 122,898 | |||||
| Depreciation and amortization | 23,216 | 20,830 | |||||
| General and administrative expenses | 7,386 | 5,874 | |||||
| Acquisition, development, and other pursuit costs | 54 | — | |||||
| Total expenses | 97,467 | 170,132 | |||||
| Operating income | 17,176 | 23,350 | |||||
| Interest expense | (18,109 | ) | (17,975 | ) | |||
| Equity in loss of unconsolidated real estate entities | (1,913 | ) | — | ||||
| Change in fair value of derivatives and other | (1,210 | ) | 12,888 | ||||
| Unrealized credit loss provision | (22 | ) | (83 | ) | |||
| Other (expense) income, net | (75 | ) | 79 | ||||
| (Loss) income before taxes | (4,153 | ) | 18,259 | ||||
| Income tax provision | (190 | ) | (534 | ) | |||
| Net (loss) income | (4,343 | ) | 17,725 | ||||
| Net loss (income) attributable to noncontrolling interests in investment entities | 3 | (34 | ) | ||||
| Preferred stock dividends | (2,887 | ) | (2,887 | ) | |||
| Net (loss) income attributable to common stockholders and OP Unitholders | $ | (7,227 | ) | $ | 14,804 | ||
| ARMADA HOFFLER PROPERTIES, INC. RECONCILIATION OF NET (LOSS) INCOME TO FFO & NORMALIZED FFO (in thousands, except per share amounts) | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| (Unaudited) | |||||||
| Net (loss) income attributable to common stockholders and OP Unitholders | $ | (7,227 | ) | $ | 14,804 | ||
| Depreciation and amortization, net (1) | 24,400 | 20,215 | |||||
| FFO attributable to common stockholders and OP Unitholders | $ | 17,173 | $ | 35,019 | |||
| Acquisition, development, and other pursuit costs | 54 | — | |||||
| Accelerated amortization of intangible assets and liabilities | (169 | ) | — | ||||
| Unrealized credit loss provision | 22 | 83 | |||||
| Amortization of right-of-use assets - finance leases | 395 | 395 | |||||
| (Decrease) increase in fair value of derivatives not designated as cash flow hedges | 5,627 | (6,510 | ) | ||||
| Stock compensation normalization(2) | 2,110 | — | |||||
| Amortization of interest rate derivatives on designated cash flow hedges | 383 | 260 | |||||
| Severance related costs | 13 | 167 | |||||
| Normalized FFO available to common stockholders and OP Unitholders | $ | 25,608 | $ | 29,414 | |||
| Net (loss) income attributable to common stockholders and OP Unitholders per diluted share and unit | $ | (0.07 | ) | $ | 0.17 | ||
| FFO attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.17 | $ | 0.40 | |||
| Normalized FFO attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.25 | $ | 0.33 | |||
| Weighted average common shares and units - diluted | 101,570 | 88,451 | |||||
____________________
| (1) | The adjustment for depreciation and amortization excludes amortization of above and below-market ground lease assets. The adjustments for depreciation and amortization for each of the three months ended March 31, 2025 and 2024 excludes |
| (2) | Accounts for the double-issuance of stock compensation due to a modification in the structure of executive compensation grants, removing the impact of grants in the current year that are related to the prior year's performance. New grants are now issued in the year in which performance relates. Adjustment also removes impact of a one-time acceleration of |
| ARMADA HOFFLER PROPERTIES, INC. RECONCILIATION OF NET (LOSS) INCOME TO SAME STORE NOI, CASH BASIS (in thousands) (unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Retail Same Store (1) | |||||||
| Same Store NOI, Cash Basis | $ | 16,615 | $ | 16,786 | |||
| GAAP Adjustments (2) | 1,199 | 1,001 | |||||
| Same Store NOI | 17,814 | 17,787 | |||||
| Non-Same Store NOI (3) | 168 | 1,238 | |||||
| Segment NOI | 17,982 | 19,025 | |||||
| Office Same Store (4) | |||||||
| Same Store NOI, Cash Basis | 13,318 | 12,524 | |||||
| GAAP Adjustments (2) | 1,835 | 1,357 | |||||
| Same Store NOI | 15,153 | 13,881 | |||||
| Non-Same Store NOI (3) | 85 | (341 | ) | ||||
| Segment NOI | 15,238 | 13,540 | |||||
| Multifamily Same Store (5) | |||||||
| Same Store NOI, Cash Basis | 8,474 | 8,765 | |||||
| GAAP Adjustments (2) | 215 | 208 | |||||
| Same Store NOI | 8,689 | 8,973 | |||||
| Non-Same Store NOI (3) | 331 | (187 | ) | ||||
| Segment NOI | 9,020 | 8,786 | |||||
| Total Property NOI | 42,240 | 41,351 | |||||
| General contracting & real estate services gross profit | 1,364 | 4,077 | |||||
| Real estate financing gross profit | 2,022 | 2,668 | |||||
| Interest income (6) | 492 | 626 | |||||
| Depreciation and amortization | (23,216 | ) | (20,830 | ) | |||
| General and administrative expenses | (7,386 | ) | (5,874 | ) | |||
| Acquisition, development, and other pursuit costs | (54 | ) | — | ||||
| Interest expense (7) | (18,109 | ) | (16,643 | ) | |||
| Equity in income of unconsolidated real estate entities | (1,913 | ) | — | ||||
| Change in fair value of derivatives and other | (1,210 | ) | 12,888 | ||||
| Unrealized credit loss provision | (22 | ) | (83 | ) | |||
| Other (expense) income, net | (75 | ) | 79 | ||||
| Income tax provision | (190 | ) | (534 | ) | |||
| Net income (loss) | (6,057 | ) | 17,725 | ||||
| Net loss (income) attributable to noncontrolling interests in investment entities | 3 | (34 | ) | ||||
| Preferred stock dividends | (2,887 | ) | (2,887 | ) | |||
| Net (loss) income attributable to AHH and OP unitholders | $ | (8,941 | ) | $ | 14,804 | ||
________________________________________
| (1) | Retail same-store portfolio for the three months ended March 31, 2025 and 2024 excludes Southern Post Retail and Columbus Village II due to redevelopment, as well as Market at Mill Creek and Nexton Square which were sold in December 2024. |
| (2) | GAAP Adjustments include adjustments for the net effects of straight-line rental revenues, the amortization of lease incentives and above/below market rents, the net effects of straight-line rental expenses, and ground rent expenses for finance leases. |
| (3) | Includes expenses associated with the Company's in-house asset management division. |
| (4) | Office same-store portfolio for the three months ended March 31, 2025 and 2024 excludes Southern Post Office. |
| (5) | Multifamily same-store portfolio for the three months ended March 31, 2025 and 2024 excludes Chandler Residences. |
| (6) | Excludes real estate financing segment interest income. |
| (7) | Excludes real estate financing segment interest expense. |
Contact:
Chelsea Forrest
Armada Hoffler
Vice President of Corporate Communications and Investor Relations
Email: CForrest@ArmadaHoffler.com
Phone: (757) 612-4248
FAQ
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