Armada Hoffler Reports Fourth Quarter 2024 Results
Armada Hoffler Properties (NYSE: AHH) reported its Q4 2024 results with GAAP net income of $0.26 per diluted share for the quarter and $0.33 for the full year. The company achieved Normalized FFO of $0.27 per diluted share for Q4 and $1.29 for 2024.
Key highlights include strong portfolio performance with weighted average stabilized occupancy at 96.0%, positive leasing spreads across all segments, and office same-store NOI growth of 12.3%. The company executed 44 leases totaling approximately 315,000 square feet. Construction backlog stood at $123.8 million.
Notable transactions include the disposition of Market at Mill Creek and Nexton Square properties for $82.0 million, resulting in a $21.3 million net gain. The company also completed a leadership transition, with Shawn Tibbetts assuming the CEO role effective January 1, 2025.
Looking ahead, AHH introduced 2025 full-year Normalized FFO guidance range of $1.00 to $1.10 per diluted share.
Armada Hoffler Properties (NYSE: AHH) ha riportato i risultati del quarto trimestre 2024 con un utile netto GAAP di $0,26 per azione diluita per il trimestre e $0,33 per l'intero anno. L'azienda ha raggiunto FFO Normalizzato di $0,27 per azione diluita per il quarto trimestre e $1,29 per il 2024.
I punti salienti includono una forte performance del portafoglio con un tasso di occupazione stabilizzato medio ponderato del 96,0%, spread di leasing positivi in tutti i segmenti e una crescita del NOI delle stesse proprietà per uffici del 12,3%. L'azienda ha eseguito 44 contratti di locazione per un totale di circa 315.000 piedi quadrati. L'arretrato di costruzione ammontava a $123,8 milioni.
Tra le transazioni notevoli vi sono la cessione delle proprietà Market at Mill Creek e Nexton Square per $82,0 milioni, con un guadagno netto di $21,3 milioni. L'azienda ha anche completato una transizione di leadership, con Shawn Tibbetts che assumerà il ruolo di CEO a partire dal 1 gennaio 2025.
Guardando al futuro, AHH ha introdotto un intervallo di guida per l'FFO Normalizzato per l'intero anno 2025 compreso tra $1,00 e $1,10 per azione diluita.
Armada Hoffler Properties (NYSE: AHH) reportó sus resultados del cuarto trimestre de 2024 con un ingreso neto GAAP de $0.26 por acción diluida para el trimestre y $0.33 para el año completo. La compañía logró FFO Normalizado de $0.27 por acción diluida para el cuarto trimestre y $1.29 para 2024.
Los aspectos destacados incluyen un sólido desempeño de la cartera con una ocupación estabilizada promedio ponderada del 96.0%, márgenes de arrendamiento positivos en todos los segmentos y un crecimiento del NOI en propiedades de oficina del 12.3%. La compañía ejecutó 44 arrendamientos que totalizan aproximadamente 315,000 pies cuadrados. El retraso en la construcción se situó en $123.8 millones.
Las transacciones notables incluyen la disposición de las propiedades Market at Mill Creek y Nexton Square por $82.0 millones, resultando en una ganancia neta de $21.3 millones. La compañía también completó una transición de liderazgo, con Shawn Tibbetts asumiendo el rol de CEO a partir del 1 de enero de 2025.
Mirando hacia el futuro, AHH introdujo un rango de guía de FFO Normalizado para el año completo 2025 de $1.00 a $1.10 por acción diluida.
Armada Hoffler Properties (NYSE: AHH)는 2024년 4분기 결과를 발표하며 분기당 희석 주당 GAAP 순이익이 $0.26, 연간 순이익이 $0.33이라고 보고했습니다. 회사는 4분기 동안 희석 주당 정상화된 FFO가 $0.27을 달성했고, 2024년에는 $1.29에 이르렀습니다.
주요 하이라이트로는 96.0%의 가중 평균 안정화 점유율을 기록한 강력한 포트폴리오 성과, 모든 세그먼트에서 긍정적인 임대 스프레드, 사무실 동종 매장 NOI 성장률 12.3%가 포함됩니다. 회사는 약 315,000 평방피트에 해당하는 44개의 임대 계약을 체결했습니다. 건설 잔고는 $123.8 백만 달러에 달했습니다.
주목할 만한 거래로는 Market at Mill Creek 및 Nexton Square 부동산의 $82.0 백만 달러에 대한 처분이 있으며, 이로 인해 $21.3 백만 달러의 순이익이 발생했습니다. 또한 회사는 리더십 전환을 완료했으며, Shawn Tibbetts가 2025년 1월 1일부터 CEO 역할을 맡게 됩니다.
앞으로 AHH는 2025년 전체 연도의 정상화된 FFO 가이던스 범위를 희석 주당 $1.00에서 $1.10으로 설정했습니다.
Armada Hoffler Properties (NYSE: AHH) a publié ses résultats du quatrième trimestre 2024 avec un bénéfice net GAAP de 0,26 $ par action diluée pour le trimestre et de 0,33 $ pour l'année entière. L'entreprise a atteint un FFO normalisé de 0,27 $ par action diluée pour le quatrième trimestre et de 1,29 $ pour 2024.
Les points forts incluent une performance solide du portefeuille avec un taux d'occupation stabilisé moyen pondéré de 96,0 %, des spreads de location positifs dans tous les segments et une croissance du NOI des bureaux en magasin de 12,3 %. L'entreprise a exécuté 44 baux totalisant environ 315 000 pieds carrés. Le carnet de commandes de construction s'élevait à 123,8 millions de dollars.
Parmi les transactions notables, on trouve la cession des propriétés Market at Mill Creek et Nexton Square pour 82,0 millions de dollars, entraînant un gain net de 21,3 millions de dollars. L'entreprise a également achevé une transition de leadership, avec Shawn Tibbetts prenant le rôle de PDG à compter du 1er janvier 2025.
En regardant vers l'avenir, AHH a introduit une fourchette de prévisions de FFO normalisé pour l'année complète 2025 de 1,00 $ à 1,10 $ par action diluée.
Armada Hoffler Properties (NYSE: AHH) hat seine Ergebnisse für das vierte Quartal 2024 veröffentlicht, mit einem GAAP-Nettoeinkommen von $0,26 pro verwässerter Aktie für das Quartal und $0,33 für das gesamte Jahr. Das Unternehmen erreichte normalisiertes FFO von $0,27 pro verwässerter Aktie für das vierte Quartal und $1,29 für 2024.
Wichtige Highlights umfassen eine starke Portfolio-Performance mit einer gewichteten durchschnittlichen stabilisierten Belegung von 96,0 %, positive Mietspreads in allen Segmenten und ein NOI-Wachstum von 12,3 % bei Büroimmobilien. Das Unternehmen hat 44 Mietverträge über insgesamt etwa 315.000 Quadratfuß abgeschlossen. Der Bauauftragsbestand belief sich auf 123,8 Millionen US-Dollar.
Bemerkenswerte Transaktionen umfassen die Veräußerung der Immobilien Market at Mill Creek und Nexton Square für 82,0 Millionen US-Dollar, was zu einem Nettogewinn von 21,3 Millionen US-Dollar führte. Das Unternehmen hat auch einen Führungswechsel vollzogen, wobei Shawn Tibbetts ab dem 1. Januar 2025 die Rolle des CEO übernimmt.
Für die Zukunft hat AHH einen Leitfaden für das normalisierte FFO für das gesamte Jahr 2025 in einer Spanne von $1,00 bis $1,10 pro verwässerter Aktie eingeführt.
- Net income increased to $26.1 million in Q4 2024 from -$23.9 million in Q4 2023
- Strong portfolio occupancy rates: Office 97.2%, Retail 95.3%, Multifamily 95.3%
- Office same-store NOI growth of 12.3%
- Positive leasing spreads across all segments (Office: 18.7% GAAP, Retail: 11.1% GAAP)
- $82.0 million property disposition with $21.3 million net gain
- Normalized FFO per share decreased to $0.27 in Q4 2024 from $0.31 in Q4 2023
- 2025 FFO guidance ($1.00-$1.10) indicates potential decrease from 2024's $1.29
- Construction backlog declined with expected gross profit decrease in 2025
- $2.5 million in unrealized losses on interest rate derivatives in Q4
Insights
The Q4 2024 results reveal a complex picture of Armada Hoffler's performance and strategic direction. The company's operational metrics show remarkable resilience, with the 97.2% office occupancy particularly impressive given current market challenges. The positive releasing spreads - notably
However, the 2025 Normalized FFO guidance of
The company's balance sheet management shows strategic foresight. The disposition of Market at Mill Creek and Nexton Square generated a substantial
Three key metrics warrant investor attention:
- The construction backlog decline suggests a strategic shift away from third-party construction as a significant earnings contributor
- The 94% fixed/hedged debt ratio provides substantial interest rate protection but may limit flexibility in a potentially declining rate environment
- The consistently high occupancy rates across all segments indicate strong underlying asset quality and market positioning
The company's focus on "improving the income stream and balance sheet quality" suggests a transition toward a more traditional REIT model, potentially with lower but more stable earnings. This strategic pivot, while causing near-term FFO dilution, may position the company for more sustainable long-term growth.
GAAP Net Income of
and
Normalized FFO of
and
Office Same Store NOI Growth of
Positive Office Releasing Spreads of
Positive Retail Renewal Spreads of
Approximately 315K Net Rentable Square Feet of New and Renewed Commercial Lease Space
Introduced 2025 Full-Year Normalized FFO Guidance Range of
VIRGINIA BEACH, Va., Feb. 19, 2025 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (NYSE: AHH) today announced its results for the quarter ended December 31, 2024 and provided an update on current events and earnings guidance.
Fourth Quarter and Recent Highlights:
- Net income attributable to common stockholders and OP Unit holders of
$26.1 million , or$0.26 per diluted share, compared to net loss attributable to common stockholders and OP Unit holders of$23.9 million , or$0.27 per diluted share, for the three months ended December 31, 2023.
- Funds from operations attributable to common stockholders and OP Unit holders ("FFO") of
$29.7 million , or$0.29 per diluted share, compared to$11.1 million , or$0.13 per diluted share, for the three months ended December 31, 2023. See "Non-GAAP Financial Measures."
- Normalized funds from operations attributable to common stockholders and OP Unit holders ("Normalized FFO") of
$27.8 million , or$0.27 per diluted share, compared to$27.9 million , or$0.31 per diluted share, for the three months ended December 31, 2023. See "Non-GAAP Financial Measures."
- As of December 31, 2024, weighted average stabilized portfolio occupancy was
96.0% . Retail occupancy was95.3% , office occupancy was97.2% , and multifamily occupancy was95.3% .
- Positive spreads on renewals across all segments:
- Retail
11.1% (GAAP) and2.9% (Cash) - Office
18.7% (GAAP) and3.5% (Cash) - Multifamily
4.7% (GAAP and Cash)
- Retail
- Executed 21 lease renewals and 23 new leases during the fourth quarter for an aggregate of approximately 315,000 of net rentable square feet.
"We remain committed to our core goal - improving the income stream and balance sheet quality," said Shawn Tibbetts, Chief Executive Officer and President. "Our short-term strategy is centered on positioning the company for sustainable growth while maintaining financial strength in an evolving market."
- Office Same Store Net Operating Income ("NOI") increased
12.3% on a GAAP basis compared to the quarter ended December 31, 2023.
- Third-party construction backlog as of December 31, 2024 was
$123.8 million and general contracting and real estate services gross profit for the fourth quarter was$2.1 million .
- During the fourth quarter of 2024, unrealized losses on non-designated interest rate derivatives that negatively affected FFO were
$2.5 million . As of December 31, 2024, the value of the Company’s entire interest rate derivative portfolio, net of unrealized losses, was$15.9 million . These losses are excluded from Normalized FFO.
- Consistent with the Company's previously announced succession plan, on November 14, 2024, Louis S. Haddad informed our board of directors of his decision to resign from his position as Chief Executive Officer of the Company (“Chief Executive Officer”), effective December 31, 2024. Mr. Haddad remains a director and the Executive Chairman of the Company's board through the Company’s 2025 annual meeting of stockholders, at which Mr. Haddad is expected to be nominated for reelection to the board. Pursuant to the succession plan, the board appointed Shawn J. Tibbetts, the Company’s President and Chief Operating Officer, to the position of Chief Executive Officer effective January 1, 2025. The board appointed Mr. Tibbetts to the board in connection with his promotion to Chief Executive Officer.
- On November 27, 2024, the Company closed on a loan secured by the Premier Retail and Premier Apartments properties, using the
$29.4 million in proceeds to pay off the$24.5 million balance of the loan secured by the Southgate Square retail property and pay down the amount outstanding on the credit facility.
- On December 18, 2024, the Company completed the disposition of the Market at Mill Creek and Nexton Square retail properties for gross proceeds of
$82.0 million , resulting in a combined net gain on real estate dispositions of$21.3 million . The proceeds were used to pay off the$21.1 million loan secured by the Nexton Square property and pay down the amount outstanding on the credit facility.
- For the year ended December 31, 2024, the Company sold 2,288,541 shares of common stock under the Company's at-the-market program for gross proceeds of
$26.5 million .
Financial Results
Net income attributable to common stockholders and OP Unit holders for the fourth quarter increased to
FFO attributable to common stockholders and OP Unit holders for the fourth quarter was
Net income attributable to common stockholders and OP Unit holders for the full year was
Operating Performance
At the end of the fourth quarter, the Company’s retail, office, and multifamily stabilized operating property portfolios were
Total construction contract backlog was
Interest income from real estate financing investments was
Balance Sheet and Financing Activity
As of December 31, 2024, the Company had
Outlook
The Company is introducing its 2025 full-year Normalized FFO guidance in the 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] 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, February 20, 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 9445 (toll dial-in number). The conference ID is 73009. A replay of the conference call will be available through Wednesday, March 19, 2025 by dialing (+1) 888 660 6264 (toll-free dial-in number) or (+1) 646 517 3975 (toll dial-in number) and providing passcode 73009#.
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, 2023, 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) | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Real estate investments: | |||||||
| Income producing property | $ | 2,173,787 | $ | 2,093,032 | |||
| Held for development | 5,683 | 11,978 | |||||
| Construction in progress | 17,515 | 102,277 | |||||
| 2,196,985 | 2,207,287 | ||||||
| Accumulated depreciation | (451,907 | ) | (393,169 | ) | |||
| Net real estate investments | 1,745,078 | 1,814,118 | |||||
| Real estate investments held for sale | 4,800 | — | |||||
| Cash and cash equivalents | 70,642 | 27,920 | |||||
| Restricted cash | 1,581 | 2,246 | |||||
| Accounts receivable, net | 52,860 | 45,529 | |||||
| Notes receivable, net | 132,565 | 94,172 | |||||
| Construction receivables, including retentions, net | 84,624 | 126,443 | |||||
| Construction contract costs and estimated earnings in excess of billings | 6 | 104 | |||||
| Equity method investments | 158,151 | 142,031 | |||||
| Operating lease right-of-use assets | 22,841 | 23,085 | |||||
| Finance lease right-of-use assets | 88,986 | 90,565 | |||||
| Acquired lease intangible assets | 89,739 | 109,137 | |||||
| Other assets | 60,990 | 87,548 | |||||
| Total Assets | 2,512,863 | 2,562,898 | |||||
| LIABILITIES AND EQUITY | |||||||
| Indebtedness, net | 1,295,559 | 1,396,965 | |||||
| Accounts payable and accrued liabilities | 38,840 | 31,041 | |||||
| Construction payables, including retentions | 104,495 | 128,290 | |||||
| Billings in excess of construction contract costs and estimated earnings | 5,871 | 21,414 | |||||
| Operating lease liabilities | 31,365 | 31,528 | |||||
| Finance lease liabilities | 92,646 | 91,869 | |||||
| Other liabilities | 54,418 | 56,613 | |||||
| Total Liabilities | 1,623,194 | 1,757,720 | |||||
| Total Equity | 889,669 | 805,178 | |||||
| Total Liabilities and Equity | $ | 2,512,863 | $ | 2,562,898 | |||
| ARMADA HOFFLER PROPERTIES, INC. | |||||||||||||||
| CONDENSED CONSOLIDATED INCOME STATEMENTS | |||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (Unaudited) | |||||||||||||||
| Revenues | |||||||||||||||
| Rental revenues | $ | 62,953 | $ | 59,842 | $ | 256,697 | $ | 238,924 | |||||||
| General contracting and real estate services revenues | 75,010 | 126,911 | 433,177 | 413,131 | |||||||||||
| Interest income | 4,637 | 4,280 | 18,596 | 15,103 | |||||||||||
| Total revenues | 142,600 | 191,033 | 708,470 | 667,158 | |||||||||||
| Expenses | |||||||||||||||
| Rental expenses | 16,066 | 15,027 | 62,410 | 56,419 | |||||||||||
| Real estate taxes | 5,313 | 5,532 | 23,308 | 22,442 | |||||||||||
| General contracting and real estate services expenses | 72,917 | 123,377 | 419,302 | 399,713 | |||||||||||
| Depreciation and amortization | 25,265 | 35,570 | 90,962 | 97,427 | |||||||||||
| General and administrative expenses | 4,661 | 4,336 | 20,225 | 18,122 | |||||||||||
| Acquisition, development, and other pursuit costs | 1 | 66 | 5,531 | 84 | |||||||||||
| Impairment charges | — | (5 | ) | 1,494 | 102 | ||||||||||
| Total expenses | 124,223 | 183,903 | 623,232 | 594,309 | |||||||||||
| Gain on real estate dispositions, net | 21,305 | — | 21,305 | 738 | |||||||||||
| Operating Income | 39,682 | 7,130 | 106,543 | 73,587 | |||||||||||
| Interest expense | (18,376 | ) | (16,435 | ) | (78,965 | ) | (57,810 | ) | |||||||
| Equity in income of unconsolidated real estate entities | 245 | — | 245 | — | |||||||||||
| Loss on extinguishment of debt | (134 | ) | — | (247 | ) | — | |||||||||
| Change in fair value of derivatives and other | 7,273 | (11,266 | ) | 14,251 | (6,242 | ) | |||||||||
| Unrealized credit loss (provision) release | (103 | ) | 297 | (156 | ) | (574 | ) | ||||||||
| Other (expense) income, net | (45 | ) | (293 | ) | 209 | 31 | |||||||||
| Income (loss) before taxes | 28,542 | (20,567 | ) | 41,880 | 8,992 | ||||||||||
| Income tax benefit (provision) | 494 | (495 | ) | 614 | (1,329 | ) | |||||||||
| Net income (loss) | 29,036 | (21,062 | ) | 42,494 | 7,663 | ||||||||||
| Net (income) loss attributable to noncontrolling interests in investment entities | (9 | ) | 11 | (43 | ) | (605 | ) | ||||||||
| Preferred stock dividends | (2,887 | ) | (2,887 | ) | (11,548 | ) | (11,548 | ) | |||||||
| Net income (loss) attributable to common stockholders and OP Unitholders | $ | 26,140 | $ | (23,938 | ) | $ | 30,903 | $ | (4,490 | ) | |||||
| ARMADA HOFFLER PROPERTIES, INC. | |||||||||||||||
| RECONCILIATION OF NET (LOSS) INCOME TO FFO & NORMALIZED FFO | |||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (Unaudited) | |||||||||||||||
| Net income (loss) attributable to common stockholders and OP Unitholders | $ | 26,140 | $ | (23,938 | ) | $ | 30,903 | $ | (4,490 | ) | |||||
| Depreciation and amortization, net (1) | 24,899 | 35,069 | 88,754 | 95,208 | |||||||||||
| Gain on operating real estate dispositions, net (2) | (21,305 | ) | — | (21,305 | ) | — | |||||||||
| Impairment of real estate assets | — | — | 1,494 | — | |||||||||||
| FFO attributable to common stockholders and OP Unitholders | $ | 29,734 | $ | 11,131 | $ | 99,846 | $ | 90,718 | |||||||
| Acquisition, development, and other pursuit costs | 1 | 66 | 5,531 | 84 | |||||||||||
| Accelerated amortization of intangible assets and liabilities | — | (38 | ) | (5 | ) | (653 | ) | ||||||||
| Loss on extinguishment of debt | 134 | — | 247 | — | |||||||||||
| Unrealized credit loss provision (release) | 103 | (297 | ) | 156 | 574 | ||||||||||
| Amortization of right-of-use assets - finance leases | 394 | 300 | 1,578 | 1,349 | |||||||||||
| (Decrease) increase in fair value of derivatives not designated as cash flow hedges | (2,497 | ) | 16,159 | 9,612 | 14,185 | ||||||||||
| Amortization of interest rate derivatives on designated cash flow hedges | (32 | ) | 612 | 422 | 4,210 | ||||||||||
| Severance related costs | — | — | 1,506 | — | |||||||||||
| Normalized FFO available to common stockholders and OP Unitholders | $ | 27,837 | $ | 27,933 | $ | 118,893 | $ | 110,467 | |||||||
| Net income (loss) attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.26 | $ | (0.27 | ) | $ | 0.33 | $ | (0.05 | ) | |||||
| FFO attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.29 | $ | 0.13 | $ | 1.08 | $ | 1.02 | |||||||
| Normalized FFO attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.27 | $ | 0.31 | $ | 1.29 | $ | 1.24 | |||||||
| Weighted average common shares and units - diluted | 101,361 | 88,733 | 92,326 | 88,864 | |||||||||||
| ________________________________________ | |||||||||||||||
| (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 years ended December 31, 2024 and 2023 excludes | |||||||||||||||
| (2) The adjustment for gain on operating real estate dispositions for each of the three months and the year ended December 31, 2023 excludes | |||||||||||||||
| ARMADA HOFFLER PROPERTIES, INC. | |||||||||||||||
| RECONCILIATION OF NET (LOSS) INCOME TO SAME STORE NOI, CASH BASIS | |||||||||||||||
| (in thousands) (unaudited) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Retail Same Store (1) | |||||||||||||||
| Same Store NOI, Cash Basis | $ | 16,344 | $ | 16,050 | $ | 59,585 | $ | 59,480 | |||||||
| GAAP Adjustments (2) | 1,034 | 1,173 | 3,813 | 4,454 | |||||||||||
| Same Store NOI | 17,378 | 17,223 | 63,398 | 63,934 | |||||||||||
| Non-Same Store NOI (3) | 1,909 | 1,320 | 12,395 | 10,418 | |||||||||||
| Segment NOI | 19,287 | 18,543 | 75,793 | 74,352 | |||||||||||
| Office Same Store (4) | |||||||||||||||
| Same Store NOI, Cash Basis | 11,713 | 10,853 | 45,025 | 43,501 | |||||||||||
| GAAP Adjustments (2) | 2,183 | 1,516 | 6,932 | 4,725 | |||||||||||
| Same Store NOI | 13,896 | 12,369 | 51,957 | 48,226 | |||||||||||
| Non-Same Store NOI (3) | (697 | ) | (311 | ) | 9,271 | 3,239 | |||||||||
| Segment NOI | 13,199 | 12,058 | 61,228 | 51,465 | |||||||||||
| Multifamily Same Store (5) | |||||||||||||||
| Same Store NOI, Cash Basis | 8,361 | 8,691 | 30,521 | 31,068 | |||||||||||
| GAAP Adjustments (2) | 209 | 188 | 834 | 796 | |||||||||||
| Same Store NOI | 8,570 | 8,879 | 31,355 | 31,864 | |||||||||||
| Non-Same Store NOI (3) | 518 | (197 | ) | 2,603 | 2,382 | ||||||||||
| Segment NOI | 9,088 | 8,682 | 33,958 | 34,246 | |||||||||||
| Total Property NOI | 41,574 | 39,283 | 170,979 | 160,063 | |||||||||||
| General contracting & real estate services gross profit | 2,093 | 3,534 | 13,875 | 13,418 | |||||||||||
| Real estate financing gross profit | 2,274 | 3,191 | 9,489 | 10,510 | |||||||||||
| Interest income (6) | 598 | 361 | 2,519 | 927 | |||||||||||
| Depreciation and amortization | (25,265 | ) | (35,570 | ) | (90,962 | ) | (97,427 | ) | |||||||
| General and administrative expenses | (4,661 | ) | (4,336 | ) | (20,225 | ) | (18,122 | ) | |||||||
| Acquisition, development, and other pursuit costs | (1 | ) | (66 | ) | (5,531 | ) | (84 | ) | |||||||
| Impairment charges | — | 5 | (1,494 | ) | (102 | ) | |||||||||
| Gain on real estate dispositions, net | 21,305 | — | 21,305 | 738 | |||||||||||
| Interest expense (7) | (16,611 | ) | (15,707 | ) | (72,377 | ) | (54,144 | ) | |||||||
| Equity in income of unconsolidated real estate entities | 245 | — | 245 | — | |||||||||||
| Loss on extinguishment of debt | (134 | ) | — | (247 | ) | — | |||||||||
| Change in fair value of derivatives and other | 7,273 | (11,266 | ) | 14,251 | (6,242 | ) | |||||||||
| Unrealized credit loss (provision) release | (103 | ) | 297 | (156 | ) | (574 | ) | ||||||||
| Other (expense) income, net | (45 | ) | (293 | ) | 209 | 31 | |||||||||
| Income tax benefit (provision) | 494 | (495 | ) | 614 | (1,329 | ) | |||||||||
| Net income (loss) | 29,036 | (21,062 | ) | 42,494 | 7,663 | ||||||||||
| Net (income) loss attributable to noncontrolling interests in investment entities | (9 | ) | 11 | (43 | ) | (605 | ) | ||||||||
| Preferred stock dividends | (2,887 | ) | (2,887 | ) | (11,548 | ) | (11,548 | ) | |||||||
| Net (loss) income attributable to AHH and OP unitholders | $ | 26,140 | $ | (23,938 | ) | $ | 30,903 | $ | (4,490 | ) | |||||
| ________________________________________ | |||||||||||||||
| (1) Retail same-store portfolio for the three months and the year ended December 31, 2024 and 2023 excludes Southern Post Retail and Columbus Village II due to redevelopment. Retail same-store portfolio for the year ended December 31, 2024 and 2023 also excludes Chronicle Mill Retail, The Interlock Retail, 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 and the year ended December 31, 2024 and 2023 excludes Southern Post Office. Office same-store portfolio for the year ended December 31, 2024 and 2023 also excludes Chronicle Mill Office and The Interlock Office. | |||||||||||||||
| (5) Multifamily same-store portfolio for the three months and the year ended December 31, 2024 and 2023 excludes Chandler Residences. Multifamily same-store portfolio for the year ended December 31, 2024 and 2023 also excludes Chronicle Mill Apartments. | |||||||||||||||
| (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
What was AHH's Q4 2024 Normalized FFO per share?
What are AHH's occupancy rates across different property segments in Q4 2024?
How much did AHH receive from property dispositions in Q4 2024?
What is AHH's Normalized FFO guidance for 2025?
What was AHH's office same-store NOI growth in Q4 2024?
