Armada Hoffler Reports Second Quarter 2025 Results
Armada Hoffler Properties (NYSE:AHH) reported its Q2 2025 financial results, with GAAP Net Income of $0.04 per diluted share and Normalized FFO of $0.25 per diluted share. The company maintained its 2025 full-year Normalized FFO guidance range of $1.00 to $1.10 per diluted share.
Key operational highlights include 94.9% weighted average stabilized portfolio occupancy, with retail at 94.2%, office at 96.3%, and multifamily at 94.0%. The company achieved positive leasing spreads across commercial segments, with retail renewals at 10.8% (GAAP) and office renewals at 11.7% (GAAP). Same Store NOI increased 1.4% on a GAAP basis.
Notable transactions include the acquisition of remaining interest in Harbor Point Parcel 4 and a $115 million senior unsecured notes issuance with varying maturities and interest rates, used to repay construction loans and credit facility debt.
Armada Hoffler Properties (NYSE:AHH) ha comunicato i risultati finanziari del secondo trimestre 2025, con un Utile Netto GAAP di 0,04$ per azione diluita e un FFO Normalizzato di 0,25$ per azione diluita. La società ha confermato la previsione per l'intero anno 2025 del FFO Normalizzato nell'intervallo di 1,00$ - 1,10$ per azione diluita.
I principali dati operativi evidenziano un tasso di occupazione ponderato medio stabilizzato del portafoglio del 94,9%, con il retail al 94,2%, gli uffici al 96,3% e il multifamiliare al 94,0%. La società ha registrato aumenti positivi nei canoni di locazione nei segmenti commerciali, con rinnovi retail al 10,8% (GAAP) e rinnovi uffici all'11,7% (GAAP). Il NOI Same Store è cresciuto dell'1,4% su base GAAP.
Tra le operazioni rilevanti si segnalano l'acquisizione della quota residua di Harbor Point Parcel 4 e l'emissione di note senior unsecured per 115 milioni di dollari con scadenze e tassi di interesse variabili, utilizzati per estinguere prestiti per costruzione e debiti da linee di credito.
Armada Hoffler Properties (NYSE:AHH) informó sus resultados financieros del segundo trimestre de 2025, con un Ingreso Neto GAAP de 0,04$ por acción diluida y un FFO Normalizado de 0,25$ por acción diluida. La compañía mantuvo su guía para el FFO Normalizado del año completo 2025 en un rango de 1,00$ a 1,10$ por acción diluida.
Los aspectos operativos clave incluyen una ocupación promedio ponderada estabilizada del portafolio del 94,9%, con retail al 94,2%, oficinas al 96,3% y multifamiliar al 94,0%. La empresa logró aumentos positivos en los contratos de arrendamiento en los segmentos comerciales, con renovaciones retail del 10,8% (GAAP) y renovaciones de oficinas del 11,7% (GAAP). El NOI Same Store aumentó un 1,4% en base GAAP.
Entre las transacciones destacadas están la adquisición del interés restante en Harbor Point Parcel 4 y la emisión de notas senior sin garantía por 115 millones de dólares con distintos vencimientos y tasas de interés, utilizadas para pagar préstamos de construcción y de líneas de crédito.
Armada Hoffler Properties (NYSE:AHH)는 2025년 2분기 재무 결과를 발표했으며, 희석 주당 순이익(GAAP 기준) 0.04달러와 희석 주당 정규화 FFO 0.25달러를 기록했습니다. 회사는 2025년 전체 연간 정규화 FFO 가이던스를 희석 주당 1.00달러에서 1.10달러 사이로 유지했습니다.
주요 운영 하이라이트로는 가중 평균 안정화 포트폴리오 점유율 94.9%를 달성했으며, 소매 부문은 94.2%, 사무실은 96.3%, 다가구 주거는 94.0%였습니다. 회사는 상업 부문 전반에 걸쳐 긍정적인 임대료 상승률을 기록했으며, 소매 갱신은 10.8%(GAAP), 사무실 갱신은 11.7%(GAAP)였습니다. 동일 점포 NOI는 GAAP 기준으로 1.4% 증가했습니다.
주요 거래로는 Harbor Point Parcel 4의 잔여 지분 인수와 다양한 만기 및 이자율을 가진 1억 1,500만 달러 규모의 무담보 선순위 채권 발행이 있으며, 이는 건설 대출 및 신용 시설 부채 상환에 사용되었습니다.
Armada Hoffler Properties (NYSE:AHH) a publié ses résultats financiers du deuxième trimestre 2025, avec un résultat net GAAP de 0,04 $ par action diluée et un FFO normalisé de 0,25 $ par action diluée. La société 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.
Les principaux faits marquants opérationnels incluent un taux d'occupation moyen pondéré stabilisé du portefeuille de 94,9 %, avec le commerce de détail à 94,2 %, les bureaux à 96,3 % et le multifamilial à 94,0 %. La société a réalisé des augmentations positives des loyers dans les segments commerciaux, avec des renouvellements retail à 10,8 % (GAAP) et des renouvellements bureaux à 11,7 % (GAAP). Le NOI Same Store a augmenté de 1,4 % sur une base GAAP.
Parmi les transactions notables figurent l'acquisition de l'intérêt restant dans Harbor Point Parcel 4 et une émission de billets senior non garantis de 115 millions de dollars avec des échéances et des taux d'intérêt variables, utilisée pour rembourser les prêts de construction et les dettes de facilités de crédit.
Armada Hoffler Properties (NYSE:AHH) meldete seine Finanzergebnisse für das zweite Quartal 2025 mit einem GAAP-Nettogewinn von 0,04 USD je verwässerter Aktie und einem normalisierten FFO von 0,25 USD je verwässerter Aktie. Das Unternehmen bestätigte seine Prognose für das gesamte Jahr 2025 mit einem normalisierten FFO zwischen 1,00 und 1,10 USD je verwässerter Aktie.
Wichtige operative Highlights umfassen eine gewichtete durchschnittliche stabilisierte Portfoliobelegung von 94,9%, wobei der Einzelhandel bei 94,2%, Büroflächen bei 96,3% und Mehrfamilienhäuser bei 94,0% liegen. Das Unternehmen erzielte positive Mietpreiserhöhungen in den gewerblichen Segmenten, mit Einzelhandelsverlängerungen von 10,8% (GAAP) und Büroverlängerungen von 11,7% (GAAP). Der Same Store NOI stieg um 1,4% auf GAAP-Basis.
Zu den bemerkenswerten Transaktionen gehören der Erwerb der verbleibenden Anteile an Harbor Point Parcel 4 sowie die Emission von unbesicherten Senior Notes in Höhe von 115 Millionen US-Dollar mit unterschiedlichen Laufzeiten und Zinssätzen, die zur Rückzahlung von Baukrediten und Kreditfazilitäten verwendet wurden.
- Same Store NOI growth of 1.4% year-over-year
- Strong positive leasing spreads: Office 11.7% (GAAP), Retail 10.8% (GAAP)
- High portfolio occupancy rates across all segments (94.9% weighted average)
- Successful $115M senior notes issuance for debt refinancing
- Healthy third-party construction backlog of $106.6M
- Normalized FFO decreased to $0.25 per share from $0.34 in Q2 2024
- Decline in general contracting and real estate services gross profit
- Increased interest expense impacting financial performance
- Recognition of equity losses from unconsolidated real estate entities
Insights
AHH reports stable Q2 with $0.25 Normalized FFO, positive leasing spreads and maintained 2025 guidance despite sector challenges.
Armada Hoffler's Q2 2025 results demonstrate operational resilience amid rising interest rates. The company delivered Normalized FFO of
Portfolio fundamentals remain solid with
The company's recent financial maneuvers show strategic debt management. The
Maintaining the full-year Normalized FFO guidance range of
GAAP Net Income of
Normalized FFO of
Same Store NOI Growth of
Positive Office Releasing Spreads of
Positive Retail Renewal Spreads of
Approximately 168K Net Rentable Square Feet of New and Renewed Commercial Lease Space
Maintained 2025 Full-Year Normalized FFO Guidance Range of
VIRGINIA BEACH, Va., Aug. 04, 2025 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (NYSE: AHH) today announced its results for the quarter ended June 30, 2025 and provided an update on current events and earnings guidance.
Second Quarter and Recent Highlights:
- Net income attributable to common stockholders and OP Unit holders of
$3.9 million , or$0.04 per diluted share, compared to net income attributable to common stockholders and OP Unit holders of$0.4 million , or$0.00 per diluted share, for the three months ended June 30, 2024.
- Funds from operations attributable to common stockholders and OP Unit holders ("FFO") of
$19.0 million , or$0.19 per diluted share, compared to$22.4 million , or$0.25 per diluted share, for the three months ended June 30, 2024. See "Non-GAAP Financial Measures."
- Normalized funds from operations attributable to common stockholders and OP Unit holders ("Normalized FFO") of
$25.4 million , or$0.25 per diluted share, compared to$30.2 million , or$0.34 per diluted share, for the three months ended June 30, 2024. See "Non-GAAP Financial Measures."
- As of June 30, 2025, weighted average stabilized portfolio occupancy was
94.9% . Retail occupancy was94.2% , office occupancy was96.3% , and multifamily occupancy was94.0% .
- Positive spreads on renewals across all commercial segments:
- Retail
10.8% (GAAP) and5.5% (Cash) - Office
11.7% (GAAP) and5.5% (Cash)
- Retail
- Executed 16 commercial lease renewals and 10 new commercial leases during the second quarter for an aggregate of approximately 168,000 of net rentable square feet.
“We believe our focus on high-quality properties that generate stable, predictable income positions us to deliver long-term value to our shareholders,” said Shawn Tibbetts, Chief Executive Officer and President. “We are building on our strengths to create a more agile Armada Hoffler; one positioned to deliver consistent, durable earnings growth and long-term value.”
- Same Store Net Operating Income ("NOI") increased
1.4% on a GAAP basis compared to the quarter ended June 30, 2024.
- Third-party construction backlog as of June 30, 2025 was
$106.6 million and general contracting and real estate services gross profit for the second quarter was$1.4 million .
- During the second quarter of 2025, unrealized gains on non-designated interest rate derivatives that positively affected FFO were
$3.8 million . As of June 30, 2025, the value of the Company’s entire interest rate derivative portfolio, net of unrealized gains, was$8.2 million . These gains are excluded from Normalized FFO.
- On June 10, 2025, the Company acquired the remaining interest of its partner for the Harbor Point Parcel 4 (“Allied | Harbor Point”) project, resulting in Harbor Point Parcel 4 Development, LLC becoming a wholly owned subsidiary of the Company.
- On July 22, 2025, the Company, as parent guarantor, and Armada Hoffler, L.P., the Company’s operating partnership (the “Operating Partnership”), as borrower, entered into a note purchase agreement with institutional investors, pursuant to which the Operating Partnership sold, and the institutional investors purchased, an aggregate of
$115.0 million of senior unsecured notes of the Operating Partnership, consisting of (a)$25.0 million aggregate principal amount of5.57% Senior Notes, Series A, due July 22, 2028, (b)$45.0 million aggregate principal amount of5.78% Senior Notes, Series B, due July 22, 2030 and (c)$45.0 million aggregate principal amount of6.09% Senior Notes, Series C, due July 22, 2032 (collectively, the “Notes”). The Company utilized the proceeds of the sale of the Notes to repay the$65.0 million construction loan secured by the Southern Post mixed-use asset and$48.0 million under the Company’s revolving credit facility.
- On July 24, 2025, the Company entered into four interest rate swap agreements with a total notional of
$820.0 million and a SOFR rate of2.25% . The interest rate swaps will expire on August 1, 2026. The Company paid$14.0 million in premiums for the transactions.
Financial Results
Net income attributable to common stockholders and OP Unit holders for the second quarter was
FFO attributable to common stockholders and OP Unit holders for the second quarter was
Operating Performance
At the end of the second 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 June 30, 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] 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 Commercial Stabilized 4Q25
- Two Real Estate Financing investments acquired in second half of 2025
- One Property Disposition
[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, August 5, 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 67471. A replay of the conference call will be available through Thursday, September 4, 2025 by dialing (+1) 888 660 6264 (toll-free dial-in number) or (+1) 646 517 3975 (toll dial-in number) and providing passcode 67471#.
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) | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Real estate investments: | ||||||||
| Income producing property | $ | 2,435,640 | $ | 2,173,787 | ||||
| Held for development | 5,683 | 5,683 | ||||||
| Construction in progress | 24,095 | 17,515 | ||||||
| 2,465,418 | 2,196,985 | |||||||
| Accumulated depreciation | (487,686 | ) | (451,907 | ) | ||||
| Net real estate investments | 1,977,732 | 1,745,078 | ||||||
| Real estate investments held for sale | 4,800 | 4,800 | ||||||
| Cash and cash equivalents | 52,111 | 70,642 | ||||||
| Restricted cash | 2,490 | 1,581 | ||||||
| Accounts receivable, net | 53,993 | 52,860 | ||||||
| Notes receivable, net | 139,772 | 132,565 | ||||||
| Construction receivables, including retentions, net | 47,135 | 84,624 | ||||||
| Construction contract costs and estimated earnings in excess of billings | 2,990 | 6 | ||||||
| Equity method investments | 47,335 | 158,151 | ||||||
| Operating lease right-of-use assets | 22,727 | 22,841 | ||||||
| Finance lease right-of-use assets | 88,262 | 88,986 | ||||||
| Acquired lease intangible assets | 83,492 | 89,739 | ||||||
| Other assets | 53,832 | 60,990 | ||||||
| Total Assets | 2,576,671 | 2,512,863 | ||||||
| LIABILITIES AND EQUITY | ||||||||
| Indebtedness, net | 1,446,820 | 1,295,559 | ||||||
| Accounts payable and accrued liabilities | 34,106 | 38,840 | ||||||
| Construction payables, including retentions | 59,377 | 104,495 | ||||||
| Billings in excess of construction contract costs and estimated earnings | 6,664 | 5,871 | ||||||
| Operating lease liabilities | 31,284 | 31,365 | ||||||
| Finance lease liabilities | 93,086 | 92,646 | ||||||
| Other liabilities | 44,543 | 54,418 | ||||||
| Total Liabilities | 1,715,880 | 1,623,194 | ||||||
| Total Equity | 860,791 | 889,669 | ||||||
| Total Liabilities and Equity | $ | 2,576,671 | $ | 2,512,863 | ||||
| ARMADA HOFFLER PROPERTIES, INC. CONDENSED CONSOLIDATED INCOME STATEMENTS (in thousands, except per share amounts) | ||||||||
| Three Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| (Unaudited) | ||||||||
| Revenues | ||||||||
| Rental revenues | $ | 65,147 | $ | 63,265 | ||||
| General contracting and real estate services revenues | 31,976 | 116,839 | ||||||
| Interest income | 4,140 | 4,632 | ||||||
| Total revenues | 101,263 | 184,736 | ||||||
| Expenses | ||||||||
| Rental expenses | 16,077 | 15,087 | ||||||
| Real estate taxes | 6,590 | 5,886 | ||||||
| General contracting and real estate services expenses | 30,592 | 112,500 | ||||||
| Depreciation and amortization | 21,752 | 21,183 | ||||||
| General and administrative expenses | 5,998 | 4,503 | ||||||
| Acquisition, development, and other pursuit costs | 286 | 5,528 | ||||||
| Impairment charges | — | 1,494 | ||||||
| Total expenses | 81,295 | 166,181 | ||||||
| Gain on real estate dispositions, net | — | — | ||||||
| Operating income | 19,968 | 18,555 | ||||||
| Interest expense | (21,271 | ) | (21,227 | ) | ||||
| Equity in loss of unconsolidated real estate entities | (322 | ) | — | |||||
| Gain (loss) on consolidation of real estate entities | 6,915 | — | ||||||
| Change in fair value of derivatives and other | 648 | 4,398 | ||||||
| Unrealized credit loss release | 209 | 228 | ||||||
| Other income (expense), net | 3 | 79 | ||||||
| Income before taxes | 6,150 | 2,033 | ||||||
| Income tax benefit | 567 | 1,246 | ||||||
| Net income | 6,717 | 3,279 | ||||||
| Net loss (income) attributable to noncontrolling interests in investment entities | 77 | (17 | ) | |||||
| Preferred stock dividends | (2,887 | ) | (2,887 | ) | ||||
| Net (loss) income attributable to common stockholders and OP Unitholders | $ | 3,907 | $ | 375 | ||||
| ARMADA HOFFLER PROPERTIES, INC. RECONCILIATION OF NET (LOSS) INCOME TO FFO & NORMALIZED FFO (in thousands, except per share amounts) | ||||||||
| Three Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| (Unaudited) | ||||||||
| Net (loss) income attributable to common stockholders and OP Unitholders | $ | 3,907 | $ | 375 | ||||
| Depreciation and amortization, net(1) | 21,979 | 20,570 | ||||||
| Gain on consolidation of real estate entities | (6,915 | ) | — | |||||
| Impairment of real estate assets | — | 1,494 | ||||||
| FFO attributable to common stockholders and OP Unitholders | $ | 18,971 | $ | 22,439 | ||||
| Acquisition, development, and other pursuit costs | 286 | 5,528 | ||||||
| Unrealized credit loss release | (209 | ) | (228 | ) | ||||
| Amortization of right-of-use assets - finance leases | 395 | 394 | ||||||
| Increase in fair value of derivatives not designated as cash flow hedges | 3,845 | 1,950 | ||||||
| Stock compensation normalization(2) | 139 | — | ||||||
| Amortization of interest rate derivatives on designated cash flow hedges | 383 | 121 | ||||||
| Severance related costs | 1,580 | — | ||||||
| Normalized FFO available to common stockholders and OP Unitholders | $ | 25,390 | $ | 30,204 | ||||
| Net (loss) income attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.04 | $ | — | ||||
| FFO attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.19 | $ | 0.25 | ||||
| Normalized FFO attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.25 | $ | 0.34 | ||||
| Weighted average common shares and units - diluted | 102,286 | 88,815 | ||||||
| (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 June 30, 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 June 30, | ||||||||
| 2025 | 2024 | |||||||
| Retail Same Store(1) | ||||||||
| Same Store NOI, Cash Basis | $ | 16,886 | $ | 17,172 | ||||
| GAAP Adjustments(2) | 1,350 | 971 | ||||||
| Same Store NOI | 18,236 | 18,143 | ||||||
| Non-Same Store NOI(3) | 75 | 1,135 | ||||||
| Segment NOI | 18,311 | 19,278 | ||||||
| Office Same Store(4) | ||||||||
| Same Store NOI, Cash Basis | 13,202 | 13,051 | ||||||
| GAAP Adjustments(2) | 2,061 | 1,976 | ||||||
| Same Store NOI | 15,263 | 15,027 | ||||||
| Non-Same Store NOI(3) | 182 | (247 | ) | |||||
| Segment NOI | 15,445 | 14,780 | ||||||
| Multifamily Same Store(5) | ||||||||
| Same Store NOI, Cash Basis | 7,799 | 7,569 | ||||||
| GAAP Adjustments(2) | 215 | 208 | ||||||
| Same Store NOI | 8,014 | 7,777 | ||||||
| Non-Same Store NOI(3) | 710 | 455 | ||||||
| Segment NOI | 8,724 | 8,232 | ||||||
| Total Property NOI | 42,480 | 42,290 | ||||||
| General contracting & real estate services gross profit | 1,384 | 4,339 | ||||||
| Real estate financing gross profit | 3,672 | 3,966 | ||||||
| Interest income(6) | 468 | 666 | ||||||
| Depreciation and amortization | (21,752 | ) | (21,183 | ) | ||||
| General and administrative expenses | (5,998 | ) | (4,503 | ) | ||||
| Acquisition, development, and other pursuit costs | (286 | ) | (5,528 | ) | ||||
| Interest expense(7) | (21,271 | ) | (21,227 | ) | ||||
| Equity in income of unconsolidated real estate entities | (322 | ) | — | |||||
| Gain on consolidation of real estate entities | 6,915 | — | ||||||
| Change in fair value of derivatives and other | 648 | 4,398 | ||||||
| Unrealized credit loss release | 209 | 228 | ||||||
| Other income (expense), net | 3 | 79 | ||||||
| Income tax benefit | 567 | 1,246 | ||||||
| Net income | 6,717 | 3,277 | ||||||
| Net loss (income) attributable to noncontrolling interests in investment entities | 77 | (17 | ) | |||||
| Preferred stock dividends | (2,887 | ) | (2,887 | ) | ||||
| Net income attributable to AHH and OP unitholders | $ | 3,907 | $ | 373 | ||||
| (1) Retail same-store portfolio for the three months ended June 30, 2025 and 2024 excludes Southern Post Retail, Allied | Harbor Point 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 June 30, 2025 and 2024 excludes Southern Post Office and Allied | Harbor Point Office Garage. |
| (5) Multifamily same-store portfolio for the three months ended June 30, 2025 and 2024 excludes Chandler Residences and The Allied | Harbor Point. |
| (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 were Armada Hoffler's (AHH) key financial metrics for Q2 2025?
How did AHH's Q2 2025 results compare to Q2 2024?
What is Armada Hoffler's occupancy rate across its portfolio in Q2 2025?
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