AH Realty Trust Completes Sale of Construction Business, Advancing the Company’s Strategic Transformation and Focus on Long‑Term Shareholder Value

AH Realty Trust (NYSE: AHRT) on May 1, 2026 completed the sale of its construction business for $2.4 million.

Rhea-AI Summary

AH Realty Trust (NYSE: AHRT) on May 1, 2026 completed the sale of its construction business for $2.4 million. The company said this furthers its strategic transformation to exit non-core businesses, following a recent sale of two multifamily notes, and to focus on its retail and office portfolio.

Argus May 1 session

-0.16% close to close Open Argus

Details

News Market Reaction – AHRT

On May 1, the day this news came out, AHRT closed 0.16% below the previous close.

Data tracked by StockTitan Argus for the May 1 session.

Key Figures

Construction business sale: $2.4 million Multifamily notes sale: $63 million Multifamily portfolio sale: $562 million +5 more

Construction business sale

$2.4 million

Total consideration for sale of construction business

Multifamily notes sale

$63 million

Sale of Solis North Creek and Solis Peachtree notes (Mar 31, 2026)

Multifamily portfolio sale

$562 million

Cash consideration for 11-asset portfolio sale agreement (Mar 16, 2026)

Share repurchase total

$22 million

Approx. 3.6M shares repurchased at $5.72 per share

Shares repurchased

3.6 million shares

Repurchased at $5.72 per share under transformation actions

Common dividend

$0.14 per share

Quarterly dividend payable April 2, 2026

FFO

$79.7 million

Funds From Operations for year ended Dec 31, 2025

Normalized FFO

$110.4 million

Normalized FFO for year ended Dec 31, 2025

Historical Context

5 past events · Latest: Mar 31

5 events

1. Mar 31

   Note sale, buyback

   24h Move

   +4.4%

   Sale of two multifamily notes and debt reduction plus share repurchase plan.

2. Mar 16

   Portfolio sale agreement

   24h Move

   +3.2%

   Agreement to sell 11 multifamily properties to support leverage reduction targets.

3. Mar 11

   Retail lease signing

   24h Move

   -2.2%

   4,000-square-foot lease at Southern Post with Atlanta Golf & Social.

4. Mar 05

   Dividend declaration

   24h Move

   +0.8%

   Announcement of quarterly dividends on common and Series A preferred shares.

5. Mar 03

   Retail lease announcement

   24h Move

   -1.1%

   New Abercrombie & Fitch lease at Town Center of Virginia Beach.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net debt / adjusted ebitda, ffo, normalized ffo, operating partnership senior unsecured notes

4 terms

net debt / adjusted ebitda financial

"toward a <b>5.5x–6.5x net debt / adjusted EBITDA</b> leverage target"

Net debt / adjusted EBITDA measures how many years of a company’s recurring operating earnings would be needed to pay off its net debt, with net debt meaning total borrowings minus cash on hand and adjusted EBITDA meaning earnings from core operations after removing one-time or unusual items. Investors use it like a financial speedometer: a higher figure signals heavier leverage and less flexibility to weather setbacks, while a lower figure suggests stronger ability to manage and repay debt.

ffo financial

"highlights include a <b>net loss</b> of <money>$7.5 million</money>, <b>FFO</b> of"

Funds from operations (FFO) is a performance metric used mainly for real estate companies that measures the cash generated by their core rental and property-management activities, while removing accounting items such as building depreciation and one-time gains or losses from property sales. Investors rely on FFO to assess a real estate firm's ability to pay and sustain dividends and fund growth—similar to checking how much actual rent a landlord collects each month rather than paper profits.

normalized ffo financial

"FFO</b> of <money>$79.7 million</money> and <b>Normalized FFO</b> of"

Normalized FFO is a cash-focused measure of a real estate company's recurring operating performance, adjusted to remove one-time gains, losses, or unusual items so results reflect what the business typically earns. Think of it like reporting a restaurant’s average monthly sales after removing a single big catering event or a rare repair bill: it gives investors a clearer, apples-to-apples view of ongoing cash generation used to pay dividends and value the company.

operating partnership senior unsecured notes financial

"The company issued <money>$115.0 million</money> of Operating Partnership senior unsecured notes"

Debt issued by an operating partnership that promises regular interest and repayment but is not backed by specific assets; “senior” means it ranks ahead of other unsecured claims if the borrower defaults. For investors, these notes behave like loans that pay interest but carry credit risk tied to the partnership’s ability to generate cash — think of lending money to a business without collateral, where you get higher yield than secured debt in exchange for greater risk.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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VIRGINIA BEACH, Va., May 01, 2026 (GLOBE NEWSWIRE) -- AH Realty Trust (NYSE: AHRT) (“AHRT”), formerly Armada Hoffler, today announced the completed sale of its construction business for a total consideration of $2.4 million.

The sale of AH Realty Trust’s construction business is another step in the Company’s transformation, further simplifying its business model and enhancing its prospects for long-term shareholder value creation. This transaction follows the recently announced sale of two multifamily notes from the Company’s real estate financing platform and supports the company’s objective to exit its non-core businesses and sharpen its focus on operating a high-quality retail and office portfolio.

“This transaction reflects the deliberate actions we are taking to simplify the Company and focus squarely on long‑term value creation,” said Shawn Tibbetts, Chairman, President and Chief Executive Officer of AH Realty Trust. “Exiting the construction business marks continued progress in our strategic transformation, as we reposition the organization around operational excellence and embrace a leaner, more agile operating model designed to deliver more predictable earnings and sustainable cash‑flow growth.”

About AH Realty Trust

AH Realty Trust (NYSE: AHRT), formerly known as Armada Hoffler, is a real estate investment trust (“REIT”) with over four decades of experience. The Company owns and operates high-quality retail and office assets located primarily in the Mid-Atlantic and Southeastern United States. AH Realty Trust focuses on disciplined capital allocation and long-term value creation for shareholders. For more information visit AHRealtyTrust.com.

Contact:
Chelsea Forrest
AH Realty Trust
EVP of Investor Relations and Administration
Email: chelsea.forrest@ahrealtytrust.com
Phone: (757) 366-4000

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did AHRT announce on May 1, 2026 about its construction business?

AHRT completed the sale of its construction business for $2.4 million. According to the company, the transaction is part of its strategic plan to exit non-core businesses and refocus on a retail and office portfolio.

How does the $2.4 million sale affect AHRT's strategic focus (NYSE: AHRT)?

The sale is intended to simplify AHRT's business model and sharpen focus on retail and office assets. According to the company, the move follows other asset disposals and supports a leaner operating model aimed at predictable earnings.

Did AHRT sell other assets besides the construction business in 2026?

Yes. AHRT recently sold two multifamily notes from its real estate financing platform in addition to the construction business sale. According to the company, these actions are coordinated steps to exit non-core operations.

Will the construction business sale change AHRT's cash flow or earnings guidance?

The company said the transaction supports more predictable earnings and sustainable cash-flow growth but provided no numeric guidance change. According to the company, the sale is part of repositioning toward operational excellence.

Who commented on AHRT's completed sale and what was said?

Shawn Tibbetts, AHRT chairman and CEO, said exiting the construction business advances the company’s strategic transformation. According to the company, the action is meant to simplify operations and focus on long-term shareholder value.