Armada Hoffler Reports Third Quarter 2024 Results
Armada Hoffler Properties reported a GAAP net loss of $10.4 million for Q3 2024, while achieving Normalized FFO of $0.35 per diluted share. The company demonstrated strong operational performance with positive metrics across segments: office same-store NOI grew 6.1%, office occupancy increased to 94.7%, retail occupancy rose to 96.2%, and multifamily showed positive tradeouts of 1.8%. The company narrowed its 2024 full-year Normalized FFO guidance to $1.25-$1.27 per diluted share. Notable financial activities included raising $108.7 million through a public offering of 10.35 million shares at $10.50 per share and maintaining a construction backlog of $193.1 million.
Armada Hoffler Properties ha riportato una perdita netta GAAP di 10,4 milioni di dollari per il terzo trimestre del 2024, raggiungendo FFO normalizzato di 0,35 dollari per azione diluita. L'azienda ha dimostrato una forte performance operativa con metriche positive in tutti i segmenti: il NOI dello stesso negozio per gli uffici è cresciuto del 6,1%, l'occupazione degli uffici è aumentata al 94,7%, l'occupazione nel settore retail è salita al 96,2% e il multifamiliare ha mostrato tradeout positivi dell'1,8%. L'azienda ha ristretto la sua guida sul FFO normalizzato per l'intero anno 2024 a 1,25-1,27 dollari per azione diluita. Attività finanziarie notevoli hanno incluso la raccolta di 108,7 milioni di dollari attraverso un'offerta pubblica di 10,35 milioni di azioni a 10,50 dollari per azione e il mantenimento di un backlog di costruzione di 193,1 milioni di dollari.
Armada Hoffler Properties reportó una pérdida neta GAAP de 10,4 millones de dólares para el tercer trimestre de 2024, mientras lograba FFO normalizado de 0,35 dólares por acción diluida. La compañía demostró un sólido rendimiento operativo con métricas positivas en todos los segmentos: el NOI de oficinas en el mismo local creció un 6,1%, la ocupación de oficinas aumentó al 94,7%, la ocupación minorista subió al 96,2% y el multifamiliar mostró un aumento positivo del 1,8%. La compañía redujo su guía para el FFO normalizado del año completo 2024 a 1,25-1,27 dólares por acción diluida. Actividades financieras notables incluyeron la recaudación de 108,7 millones de dólares a través de una oferta pública de 10,35 millones de acciones a 10,50 dólares por acción y el mantenimiento de un backlog de construcción de 193,1 millones de dólares.
Armada Hoffler Properties는 2024년 3분기에 GAAP 기준으로 1,040만 달러의 순손실을 보고했으며, 희석주당 0.35달러의 정규화된 FFO를 달성했습니다. 이 회사는 모든 분야에서 긍정적인 지표를 보이며 강력한 운영 성과를 입증했습니다: 사무실 동일 점포 NOI가 6.1% 증가했고, 사무실 점유율은 94.7%로 증가했으며, 소매 점유율은 96.2%로 상승하고, 다가구 주택에서 1.8%의 긍정적인 거래 결과를 보여주었습니다. 회사는 2024년 전체 연도 정규화된 FFO 가이드를 희석주당 1.25-1.27달러로 축소했습니다. 주요 재무 활동으로는 10.35백만 주식을 주당 10.50달러에 공모하여 1억 870만 달러를 모금하고 1억 9,310만 달러의 건축 잔량을 유지하는 것이 포함되었습니다.
Armada Hoffler Properties a signalé une perte nette GAAP de 10,4 millions de dollars pour le troisième trimestre 2024, tout en atteignant un FFO normalisé de 0,35 dollar par action diluée. La société a démontré une solide performance opérationnelle avec des indicateurs positifs dans tous les segments : le NOI des bureaux dans les mêmes magasins a augmenté de 6,1 %, le taux d'occupation des bureaux a grimpé à 94,7 %, le taux d'occupation du retail est passé à 96,2 % et le secteur multifamilial a montré des tradeouts positifs de 1,8 %. La société a affiné ses prévisions pour le FFO normalisé pour l'ensemble de l'année 2024 à 1,25-1,27 dollars par action diluée. Parmi les activités financières notables figuraient la levée de 108,7 millions de dollars grâce à une offre publique de 10,35 millions d'actions à 10,50 dollars l'action et le maintien d'un carnet de commandes de construction de 193,1 millions de dollars.
Armada Hoffler Properties berichtete für das 3. Quartal 2024 einen GAAP-Nettoverlust von 10,4 Millionen Dollar und erzielte normalisierte FFO von 0,35 Dollar pro verwässerter Aktie. Das Unternehmen zeigte eine starke operative Leistung mit positiven Kennzahlen in allen Segmenten: Das NOI der Büros im gleichen Geschäft stieg um 6,1 %, die Büroauslastung erhöhte sich auf 94,7 %, die Einzelhandelsauslastung stieg auf 96,2 % und im Mehrfamilienhaus gab es positive Tradeouts von 1,8 %. Das Unternehmen reduzierte seine Prognose für den normalisierten FFO für das gesamte Jahr 2024 auf 1,25-1,27 Dollar pro verwässerter Aktie. Zu den bemerkenswerten finanziellen Aktivitäten gehörte die Beschaffung von 108,7 Millionen Dollar durch ein öffentliches Angebot von 10,35 Millionen Aktien zu je 10,50 Dollar pro Aktie und die Aufrechterhaltung eines Bauauftragsbestand von 193,1 Millionen Dollar.
- Portfolio-wide occupancy reached 95.4%
- Office same-store NOI increased 6.1%
- Positive renewal spreads across all segments (Retail: 13.1% GAAP, Office: 18.5% GAAP)
- Construction backlog of $193.1 million
- Normalized FFO increased to $31.4 million from $27.7 million YoY
- Net loss of $10.4 million compared to net income of $5.3 million in Q3 2023
- Unrealized losses of $16.7 million on interest rate derivatives
- Higher interest expense impacting financial results
- Equity dilution from 10.35 million share offering
Insights
The Q3 2024 results present a mixed picture for Armada Hoffler Properties. The
The balance sheet shows strategic moves with
The property performance metrics are particularly strong in a challenging real estate environment. Office occupancy of
The shift toward strengthening the balance sheet and focusing on property NOI over fee income represents a conservative, value-focused strategy. The successful redemption of the Solis City Park II investment for
GAAP Net Loss of
Normalized FFO of
Office Same Store NOI Growth of
Positive Office Renewal Spreads of
Office Occupancy Increased to
Positive Retail Renewal Spreads of
Retail Occupancy Increased to
Positive Tradeouts on Multifamily Renewals of
Narrowed 2024 Full-Year Normalized FFO Guidance Range of
VIRGINIA BEACH, Va., Nov. 04, 2024 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (NYSE: AHH) today announced its results for the quarter ended September 30, 2024 and provided an update on current events and earnings guidance.
Third Quarter and Recent Highlights:
- Net loss attributable to common stockholders and OP Unit holders of
$10.4 million , or$0.11 per diluted share, compared to net income attributable to common stockholders and OP Unit holders of$5.3 million , or$0.06 per diluted share, for the three months ended September 30, 2023.
- Funds from operations attributable to common stockholders and OP Unit holders ("FFO") of
$12.7 million , or$0.14 per diluted share, compared to$27.6 million , or$0.31 per diluted share, for the three months ended September 30, 2023. See "Non-GAAP Financial Measures."
- Normalized funds from operations attributable to common stockholders and OP Unit holders ("Normalized FFO") of
$31.4 million , or$0.35 per diluted share, compared to$27.7 million , or$0.31 per diluted share, for the three months ended September 30, 2023. See "Non-GAAP Financial Measures."
- Narrowed the Company's previous guidance range for 2024 full-year Normalized FFO of
$1.25 t o$1.27 per diluted share.
- As of September 30, 2024, weighted average stabilized portfolio occupancy was
95.4% . Retail occupancy was96.2% , office occupancy was94.7% , and multifamily occupancy was95.3% .
- Positive spreads on renewals across all segments:
- Retail
13.1% (GAAP) and7.8% (Cash) - Office
18.5% (GAAP) and0.8% (Cash) - Multifamily
1.8% (GAAP and Cash)
- Retail
"This quarter’s results, including our
- Executed 28 lease renewals and 9 new leases during the third quarter for an aggregate of 273,212 of net rentable square feet.
- Office Same Store Net Operating Income ("NOI") increased
6.1% on a GAAP basis compared to the quarter ended September 30, 2023.
- Third-party construction backlog as of September 30, 2024 was
$193.1 million and construction gross profit for the third quarter was$3.4 million .
- During the third quarter of 2024, unrealized losses on non-designated interest rate derivatives that negatively affected FFO were
$16.7 million . As of September 30, 2024, the value of the Company’s entire interest rate derivative portfolio, net of unrealized losses, was$11.1 million . These losses are excluded from Normalized FFO.
- In July, realized
$25.8 million in cash upon full redemption of the Solis City Park II preferred equity investment.
- Raised
$108.7 million of gross proceeds in an underwritten public offering of 10.35 million shares of the Company's common stock at a public offering price of$10.50 per share. Net proceeds, after deducting the underwriting discount and offering expenses, totaled$103.4 million .
Financial Results
Net loss attributable to common stockholders and OP Unit holders for the third quarter decreased to
FFO attributable to common stockholders and OP Unit holders for the third quarter was
Operating Performance
At the end of the third 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 September 30, 2024, the Company had
During the three months ended September 30, 2024, the Company issued 1,886,112 shares of common stock through its at-the-market equity offering program for total gross proceeds of approximately
On September 27, 2024, the Company raised
Outlook
The Company adjusted its 2024 full-year Normalized FFO guidance range to
| Full-year 2024 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:
- Southern Post delivery schedule update
- Initial delivery of the T. Rowe Price Global HQ and Allied | Harbor Point in the first quarter of 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 Tuesday, November 5, 2024 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 79550. A replay of the conference call will be available through Wednesday, December 4, 2024 by dialing (+1) 888 660 6264 (toll-free dial-in number) or (+1) 646 517 3975 (toll dial-in number) and providing passcode 79550#.
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)
| September 30, 2024 | December 31, 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Real estate investments: | ||||||||
| Income producing property | $ | 2,211,991 | $ | 2,093,032 | ||||
| Held for development | 10,483 | 11,978 | ||||||
| Construction in progress | 33,714 | 102,277 | ||||||
| 2,256,188 | 2,207,287 | |||||||
| Accumulated depreciation | (443,515 | ) | (393,169 | ) | ||||
| Net real estate investments | 1,812,673 | 1,814,118 | ||||||
| Cash and cash equivalents | 43,852 | 27,920 | ||||||
| Restricted cash | 1,874 | 2,246 | ||||||
| Accounts receivable, net | 51,408 | 45,529 | ||||||
| Notes receivable, net | 117,797 | 94,172 | ||||||
| Construction receivables, including retentions, net | 106,190 | 126,443 | ||||||
| Construction contract costs and estimated earnings in excess of billings | 315 | 104 | ||||||
| Equity method investments | 155,330 | 142,031 | ||||||
| Operating lease right-of-use assets | 22,898 | 23,085 | ||||||
| Finance lease right-of-use assets | 89,381 | 90,565 | ||||||
| Acquired lease intangible assets | 97,698 | 109,137 | ||||||
| Other assets | 61,723 | 87,548 | ||||||
| Total Assets | 2,561,139 | 2,562,898 | ||||||
| LIABILITIES AND EQUITY | ||||||||
| Indebtedness, net | 1,327,971 | 1,396,965 | ||||||
| Accounts payable and accrued liabilities | 44,798 | 31,041 | ||||||
| Construction payables, including retentions | 115,472 | 128,290 | ||||||
| Billings in excess of construction contract costs and estimated earnings | 11,881 | 21,414 | ||||||
| Operating lease liabilities | 31,404 | 31,528 | ||||||
| Finance lease liabilities | 92,457 | 91,869 | ||||||
| Other liabilities | 55,664 | 56,613 | ||||||
| Total Liabilities | 1,679,647 | 1,757,720 | ||||||
| Total Equity | 881,492 | 805,178 | ||||||
| Total Liabilities and Equity | $ | 2,561,139 | $ | 2,562,898 | ||||
ARMADA HOFFLER PROPERTIES, INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Revenues | ||||||||||||||||
| Rental revenues | $ | 68,598 | $ | 62,913 | $ | 193,744 | $ | 179,082 | ||||||||
| General contracting and real estate services revenues | 114,353 | 99,408 | 358,167 | 286,220 | ||||||||||||
| Interest income | 4,701 | 3,690 | 13,959 | 10,823 | ||||||||||||
| Total revenues | 187,652 | 166,011 | 565,870 | 476,125 | ||||||||||||
| Expenses | ||||||||||||||||
| Rental expenses | 16,652 | 14,756 | 46,344 | 41,392 | ||||||||||||
| Real estate taxes | 6,184 | 5,867 | 17,995 | 16,910 | ||||||||||||
| General contracting and real estate services expenses | 110,987 | 96,095 | 346,385 | 276,336 | ||||||||||||
| Depreciation and amortization | 23,289 | 22,462 | 64,513 | 60,808 | ||||||||||||
| Amortization of right-of-use assets - finance leases | 395 | 425 | 1,184 | 1,049 | ||||||||||||
| General and administrative expenses | 5,187 | 4,286 | 15,564 | 13,786 | ||||||||||||
| Acquisition, development, and other pursuit costs | 2 | — | 5,530 | 18 | ||||||||||||
| Impairment charges | — | 5 | 1,494 | 107 | ||||||||||||
| Total expenses | 162,696 | 143,896 | 499,009 | 410,406 | ||||||||||||
| Gain on real estate dispositions, net | — | 227 | — | 738 | ||||||||||||
| Operating income | 24,956 | 22,342 | 66,861 | 66,457 | ||||||||||||
| Interest expense | (21,387) | (15,444) | (60,589) | (41,375) | ||||||||||||
| Loss on extinguishment of debt | (113) | — | (113) | — | ||||||||||||
| Change in fair value of derivatives and other | (10,308) | 2,466 | 6,978 | 5,024 | ||||||||||||
| Unrealized credit loss provision | (198) | (694) | (53) | (871) | ||||||||||||
| Other income (expense), net | 96 | 63 | 254 | 324 | ||||||||||||
| (Loss) income before taxes | (6,954) | 8,733 | 13,338 | 29,559 | ||||||||||||
| Income tax (provision) benefit | (592) | (310) | 120 | (834) | ||||||||||||
| Net (loss) income | (7,546) | 8,423 | 13,458 | 28,725 | ||||||||||||
| Net loss (income) attributable to noncontrolling interests in investment entities | 17 | (193) | (34) | (616) | ||||||||||||
| Preferred stock dividends | (2,887) | (2,887) | (8,661) | (8,661) | ||||||||||||
| Net (loss) income attributable to common stockholders and OP Unitholders | $ | (10,416) | $ | 5,343 | $ | 4,763 | $ | 19,448 | ||||||||
ARMADA HOFFLER PROPERTIES, INC.
RECONCILIATION OF NET (LOSS) INCOME TO FFO & NORMALIZED FFO
(in thousands, except per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Net (loss) income attributable to common stockholders and OP Unitholders | $ | (10,416) | $ | 5,343 | $ | 4,763 | $ | 19,448 | ||||||||
| Depreciation and amortization, net (1) | 23,070 | 22,239 | 63,855 | 60,139 | ||||||||||||
| Gain on operating real estate dispositions, net (2) | — | — | — | — | ||||||||||||
| Impairment of real estate assets | — | — | 1,494 | — | ||||||||||||
| FFO attributable to common stockholders and OP Unitholders | $ | 12,654 | $ | 27,582 | $ | 70,112 | $ | 79,587 | ||||||||
| Acquisition, development, and other pursuit costs | 2 | — | 5,530 | 18 | ||||||||||||
| Accelerated amortization of intangible assets and liabilities | (5) | 5 | (5) | (615) | ||||||||||||
| Loss on extinguishment of debt | 113 | — | 113 | — | ||||||||||||
| Unrealized credit loss provision | 198 | 694 | 53 | 871 | ||||||||||||
| Amortization of right-of-use assets - finance leases | 395 | 425 | 1,184 | 1,049 | ||||||||||||
| Decrease (increase) in fair value of derivatives not designated as cash flow hedges | 16,669 | (1,484) | 12,109 | (1,974) | ||||||||||||
| Amortization of interest rate derivatives on designated cash flow hedges | 73 | 513 | 454 | 3,598 | ||||||||||||
| Severance related costs | 1,339 | — | 1,506 | — | ||||||||||||
| Normalized FFO available to common stockholders and OP Unitholders | $ | 31,438 | $ | 27,735 | $ | 91,056 | $ | 82,534 | ||||||||
| Net (loss) income attributable to common stockholders and OP Unitholders per diluted share and unit | $ | (0.1) | $ | 0.06 | $ | 0.05 | $ | 0.22 | ||||||||
| FFO attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.14 | $ | 0.31 | $ | 0.79 | $ | 0.90 | ||||||||
| Normalized FFO attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.35 | $ | 0.31 | $ | 1.02 | $ | 0.93 | ||||||||
| Weighted average common shares and units - diluted | 90,598 | 89,589 | 89,293 | 88,908 | ||||||||||||
| (1) The adjustment for depreciation and amortization for the three and nine months ended September 30, 2024 excludes |
| (2) The adjustment for gain on operating real estate dispositions for each of the three and nine months ended September 30, 2023 excludes |
ARMADA HOFFLER PROPERTIES, INC.
RECONCILIATION OF NET (LOSS) INCOME TO SAME STORE NOI, CASH BASIS
(in thousands) (unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Retail Same Store (1) | ||||||||||||||||
| Same Store NOI, Cash Basis | $ | 17,960 | $ | 18,771 | $ | 49,002 | $ | 49,272 | ||||||||
| GAAP Adjustments (2) | 1,128 | 1,305 | 2,750 | 3,408 | ||||||||||||
| Same Store NOI | 19,088 | 20,076 | 51,752 | 52,680 | ||||||||||||
| Non-Same Store NOI (3) | (497) | (185) | 5,144 | 3,133 | ||||||||||||
| Segment NOI | 18,591 | 19,891 | 56,896 | 55,813 | ||||||||||||
| Office Same Store (4) | ||||||||||||||||
| Same Store NOI, Cash Basis | 12,744 | 12,805 | 35,294 | 34,253 | ||||||||||||
| GAAP Adjustments (2) | 2,296 | 1,364 | 4,322 | 3,279 | ||||||||||||
| Same Store NOI | 15,040 | 14,169 | 39,616 | 37,532 | ||||||||||||
| Non-Same Store NOI (3) | 4,077 | (319) | 7,820 | 1,871 | ||||||||||||
| Segment NOI | 19,117 | 13,850 | 47,436 | 39,403 | ||||||||||||
| Multifamily Same Store (5) | ||||||||||||||||
| Same Store NOI, Cash Basis | 8,213 | 8,540 | 22,954 | 23,226 | ||||||||||||
| GAAP Adjustments (2) | 209 | 202 | 625 | 605 | ||||||||||||
| Same Store NOI | 8,422 | 8,742 | 23,579 | 23,831 | ||||||||||||
| Non-Same Store NOI (3) | (368) | (193) | 1,494 | 1,733 | ||||||||||||
| Segment NOI | 8,054 | 8,549 | 25,073 | 25,564 | ||||||||||||
| Total Property NOI | 45,762 | 42,290 | 129,405 | 120,780 | ||||||||||||
| General contracting & real estate services gross profit | 3,366 | 3,313 | 11,782 | 9,884 | ||||||||||||
| Real estate financing gross profit | 2,348 | 2,768 | 7,215 | 7,623 | ||||||||||||
| Interest income (6) | 629 | 194 | 1,921 | 566 | ||||||||||||
| Depreciation and amortization | (23,289) | (22,462) | (64,513) | (60,808) | ||||||||||||
| Amortization of right-of-use assets - finance leases | (395) | (425) | (1,184) | (1,049) | ||||||||||||
| General and administrative expenses | (5,187) | (4,286) | (15,564) | (13,786) | ||||||||||||
| Acquisition, development, and other pursuit costs | (2) | — | (5,530) | (18) | ||||||||||||
| Impairment charges | — | (5) | (1,494) | (107) | ||||||||||||
| Gain on real estate dispositions, net | — | 227 | — | 738 | ||||||||||||
| Interest expense (7) | (19,663) | (14,716) | (55,766) | (38,741) | ||||||||||||
| Loss on extinguishment of debt | (113) | — | (113) | — | ||||||||||||
| Change in fair value of derivatives and other | (10,308) | 2,466 | 6,978 | 5,024 | ||||||||||||
| Unrealized credit loss provision | (198) | (694) | (53) | (871) | ||||||||||||
| Other income (expense), net | 96 | 63 | 254 | 324 | ||||||||||||
| Income tax (provision) benefit | (592) | (310) | 120 | (834) | ||||||||||||
| Net (loss) income | (7,546) | 8,423 | 13,458 | 28,725 | ||||||||||||
| Net loss (income) attributable to noncontrolling interests in investment entities | 17 | (193) | (34) | (616) | ||||||||||||
| Preferred stock dividends | (2,887) | (2,887) | (8,661) | (8,661) | ||||||||||||
| Net (loss) income attributable to AHH and OP unitholders | $ | (10,416) | $ | 5,343 | $ | 4,763 | $ | 19,448 | ||||||||
| (1) Retail same-store portfolio for the three and nine months ended September 30, 2024 and 2023 excludes Southern Post Retail and Columbus Village II due to redevelopment. Retail same-store portfolio for the nine months ended September 30, 2024 and 2023 also excludes Chronicle Mill Retail and The Interlock Retail. |
| (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 and nine months ended September 30, 2024 and 2023 excludes Southern Post Office. Office same-store portfolio for the nine months ended September 30, 2024 and 2023 also excludes Chronicle Mill Office and The Interlock Office. |
| (5) Multifamily same-store portfolio for the three and nine months ended September 30, 2024 and 2023 excludes Chandler Residences. Multifamily same-store portfolio for the nine months ended September 30, 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
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