AH Realty Trust Reports Second Quarter 2026 Results
Rhea-AI Summary
AH Realty Trust (NYSE: AHRT) reported second quarter 2026 results, posting a GAAP net loss attributable to common stockholders and OP Unitholders of $24.2 million, or -$0.25 per diluted share, versus net income of $3.9 million, or $0.04 per diluted share, a year earlier, driven largely by impairments and disposition-related items. FFO was $15.4 million, or $0.16 per diluted share, down from $19.0 million, while FFO, As Adjusted rose to $14.1 million, or $0.14 per diluted share, from $13.8 million.
The company closed the $485.0 million Multifamily Portfolio Sale First Closing, generating a $18.8 million net gain and using proceeds to repay $265.5 million of secured debt and $195.0 million on its revolving credit facility, reducing Net Debt to Total Adjusted EBITDAre to 7.1x. AH Realty Trust raised full‑year 2026 FFO, As Adjusted guidance by 6% to $0.53–$0.57 per diluted share, supported by higher NOI, debt reduction and share repurchases, and now forecasts total 2026 commercial NOI of $131.8–$135.3 million.
Operationally, cash same store NOI grew 2.9% in retail and 8.3% in office, with leased occupancy of 95.1% and 96.7%, respectively. Positive leasing spreads were achieved across new and renewal leases in both segments, and the company repurchased 5.6 million shares year‑to‑date for $33.2 million.
Positive
- Raised 2026 FFO, As Adjusted guidance to $0.53–$0.57 per diluted share, a 6% increase from original guidance
- Multifamily Portfolio Sale First Closing generated $485.0M gross proceeds and a $18.8M net gain on sale
- Debt reduction of $265.5M secured and $195.0M unsecured from sale proceeds, lowering Net Debt to Total Adjusted EBITDAre to 7.1x
- FFO, As Adjusted increased to $14.1M in Q2 2026 from $13.8M in Q2 2025, supported by lower interest expense and higher NOI
- Office same store cash NOI grew 8.3% and retail 2.9% year over year in Q2 2026
- Share repurchases of 5.6M shares for $33.2M through June 30, 2026, including 2.0M shares for $12.4M in Q2
Negative
- Net loss of $24.2M (-$0.25 per diluted share) in Q2 2026 versus $3.9M net income in Q2 2025
- FFO decline to $15.4M in Q2 2026 from $19.0M in Q2 2025, impacted by debt extinguishment losses and disposition effects
- Impairments totaling $20.9M on multifamily assets, $13.5M on notes receivable, and $1.8M on development projects no longer pursued
- Losses on dispositions including $2.7M loss on extinguishment of debt and $2.2M loss on sale of the general contracting and real estate services business
- Tax provision of $3.0M in Q2 2026 related to the services business sale, primarily due to deferred tax assets no longer expected to be realized
- Unrealized losses on interest rate derivatives of $2.2M in Q2 2026 that negatively affected FFO
News Explained
AH Realty Trust’s first sale closing is complete, but additional asset sales and planned debt paydowns remain conditional on future dispositions.
The Multifamily Portfolio Sale First Closing was completed on
The company’s 2026 guidance assumes disposition of the multifamily portfolio except Smith’s Landing, remaining secured-debt paydowns of approximately
Further details on the guidance assumptions are scheduled for the company’s
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 04 | 1Q26 earnings report | Positive | +7.7% | Guidance raise and restructuring accompanied first-quarter results; shares gained 7.69%. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The prior tag-matched earnings event produced a 7.69% gain, providing one positive historical comparison for this earnings release.
Key Terms
gaap financial
ffo, as adjusted financial
noi financial
ebitdare financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
GAAP Net Loss of
FFO, As Adjusted of
Raised Full Year 2026 FFO, As Adjusted Guidance to
Office Same Store NOI Growth of
Positive Office New Lease Spreads of
Retail Same Store NOI Growth of
Positive Retail Renewal Spreads of
VIRGINIA BEACH, Va., Aug. 03, 2026 (GLOBE NEWSWIRE) -- AH Realty Trust (NYSE: AHRT) today announced its results for the quarter ended June 30, 2026 and provided an update on current events and earnings guidance.
Second Quarter and Recent Highlights:
- Raised full-year 2026 FFO, as Adjusted by
6% from original guidance to$0.53 t o$0.57 per diluted share, driven by continued NOI growth across the retail and mixed-use office portfolio, sooner than anticipated debt paydowns from closing the Multifamily Portfolio Sale First Closing sooner than anticipated, and the accretive impact of the Company's share repurchase activity. Portfolio performance was highlighted by:- Better than anticipated office leasing activity and spreads
- Sooner than expected retail tenant openings and rent commencements
- Higher than anticipated percentage rent from retail tenants
- OpEx savings resulting from successful real estate tax appeals
- Lower than anticipated bad debt
- As part of its ongoing governance enhancements supporting the Company’s strategic transformation, the Company advanced its board refreshment process by electing Theodore Bigman and Lori Wittman as independent directors at the Company’s 2026 Annual Meeting of Stockholders (the “2026 Annual Meeting”); Following the 2026 Annual Meeting, Dennis Gartman and George Allen retired from the board and each of Mr. Bigman and Ms. Wittman were appointed to the board’s Audit Committee. Additionally, F. Blair Wimbush was appointed Chair of the board's Nominating and Corporate Governance Committee and was appointed to the board's Compensation Committee.
- On May 20, 2026, the Company completed the sale of nine multifamily properties and six of the retail and office components of the properties, for aggregate gross proceeds of
$485.0 million , generating a net gain on sale of$18.8 million , after transaction costs and escrow amounts (the "Multifamily Portfolio Sale First Closing"). Using these proceeds, the Company repaid$265.5 million of secured debt and$195.0 million of unsecured debt on the revolving credit facility, reducing our Net Debt to Total Adjusted EBITDAre leverage metric to 7.1x. Two multifamily properties remain under contract for$77.0 million .
"This has been the most consequential and productive quarter in AH Realty Trust's history," said Shawn Tibbetts, Chairman, President and Chief Executive Officer. "In a matter of months, we fundamentally transformed this company, closing
Second Quarter and Recent Highlights Continued:
- On April 30, 2026, the Company fully realized
$17.2 million for The Allure at Edinburgh real estate financing investment and used the proceeds to pay down debt. - On April 30, 2026, the Company completed the sale of the general contracting and real estate services business for total economic consideration of
$2.4 million , further advancing our strategic plan to simplify the business and focus on core retail and office operations. - During the quarter ended June 30, 2026, the Company repurchased 2.0 million shares of common stock for
$12.4 million , bringing the total for the year to 5.6 million for a total of$33.2 million . - Net loss attributable to common stockholders and OP Unitholders of
$24.2 million , or$0.25 per diluted share, compared to net income attributable to common stockholders and OP Unitholders of$3.9 million , or$0.04 per diluted share, for the three months ended June 30, 2025. - Funds from operations attributable to common stockholders and OP Unitholders ("FFO") of
$15.4 million , or$0.16 per diluted share, compared to$19.0 million , or$0.19 per diluted share, for the three months ended June 30, 2025. See "Non-GAAP Financial Measures." - FFO, As Adjusted attributable to common stockholders and OP Unitholders ("FFO, As Adjusted") of
$14.1 million , or$0.14 per diluted share, compared to$13.8 million , or$0.14 per diluted share, for the three months ended June 30, 2025. See "Non-GAAP Financial Measures." - As of June 30, 2026, weighted average stabilized portfolio leased occupancy was
95.9% . Retail leased occupancy increased0.3% to95.1% and office leased occupancy increased0.7% to96.7% . - As of June 30, 2026, weighted average stabilized portfolio economic occupancy was
90.7% . Retail economic occupancy decreased1.6% to90.9% , and office economic occupancy increased2.8% to90.5% . - Executed 11 retail lease renewals and 6 new leases during the second quarter for an aggregate of 107,736 net rentable square feet. Positive spreads on both new leases and renewals:
- New leasing spreads of
9.4% (GAAP) and5.2% (Cash). - Renewal leasing spreads of
11.5% (GAAP) and8.7% (Cash).
- New leasing spreads of
- Executed 3 office lease renewals and 5 new leases during the second quarter for an aggregate of
$55,739 net rentable square feet. Positive spreads on both new leases and renewals.- New leasing spreads of
20.5% (GAAP) and9.5% (Cash). - Renewal leasing spreads of
40.2% (GAAP) and21.6% (Cash).
- New leasing spreads of
- Same Store Net Operating Income ("NOI") on a cash basis increased
2.9% for the retail segment and8.3% for the office segment compared to the quarter ended June 30, 2025. - During the second quarter of 2026, unrealized losses on non-designated interest rate derivatives that negatively affected FFO were
$2.2 million . As of June 30, 2026, the value of the Company’s entire interest rate derivative portfolio, net of unrealized losses, was$4.0 million .
Financial Results
Net loss attributable to common stockholders and OP Unitholders for the second quarter of 2026 was
FFO attributable to common stockholders and OP Unitholders for the second quarter of 2026 was
Operating Performance
At the end of the second quarter of 2026, the Company’s retail and office weighted average stabilized operating property portfolio leased occupancy were
Interest income from real estate financing investments was
Balance Sheet and Financing Activity
As of June 30, 2026, the Company had
Outlook
The Company raised its 2026 full-year FFO, As Adjusted guidance range to
| Full-year 2026 Guidance(1) | Expected Ranges | ||||
| Low | High | ||||
| RETAIL NOI | |||||
| OFFICE NOI | 59.1M | 60.6M | |||
| EQUITY METHOD INVESTMENT ("EMI") PROPERTY INCOME(2) | 3.4M | 3.9M | |||
| ACQUISITION NOI | 0.0M | 0.0M | |||
| TOTAL COMMERCIAL NOI | |||||
| G&A EXPENSES | -20.0M | -19.0M | |||
| INTEREST EXPENSE | -57.2M | -54.2M | |||
| OTHER NOI(3) | 8.9M | 9.9M | |||
| PREFERRED STOCK DIVIDENDS | -11.5M | -11.5M | |||
| FUNDS FROM OPERATIONS, AS ADJUSTED ("FFO, AS ADJUSTED")(4) | |||||
| FFO, AS ADJUSTED PER DILUTED SHARE | $0.53 | $0.57 | |||
(1) Includes the following assumptions:
- Raised 2026 Same-Store NOI Cash growth ranges:
- Retail
2.50% -3.50% - Office
2.75% -3.75%
- Retail
- Disposition of the Multifamily Portfolio, with the exception of Smith's Landing
- Exit of the remaining Real Estate Financing Portfolio
- Remaining Secured Debt Paydowns of ~
$57M with proceeds from the remaining 2026 expected dispositions of The Everly and Greenside - Remaining Net Unsecured Debt Paydowns of ~
$100M in 2026 - Includes Share Repurchases of 5.6M shares for
$33.2M through June 30, 2026 - No Acquisitions in 2026
(2) Includes T. Rowe Price Global HQ. EMI property income is reflected as the property's NOI less interest expense, times the Company's ownership percentage (
(3) Other income includes NOI from Smith's Landing and NOI from parking income.
(4) Ranges exclude certain items per the Company's FFO, As Adjusted definition. FFO, As Adjusted is a forward-looking, non-GAAP measure that presents the Company's projected Funds From Operations as adjusted for certain items that the Company believes are not indicative of its ongoing operating performance, including: (i) estimated income and expenses associated with assets held for sale or under LOI; and (ii) estimates of certain non-recurring transaction costs. The Company presents FFO, As Adjusted to provide investors with a supplemental measure of the Company's anticipated operating performance following the completion of its announced strategic initiatives, but investors are cautioned against placing undue reliance on the Company's presentation of FFO, As Adjusted. See "Non-GAAP Financial Measures." The Company does not provide a reconciliation for its guidance range of FFO, As Adjusted or FFO, As Adjusted per diluted share to net income or net income per diluted share, the most directly comparable forward-looking GAAP financial measures, 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 FFO, As Adjusted and FFO, As Adjusted per diluted share would imply a degree of precision for its forward-looking net income per diluted share that could be misleading to investors.
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 AHRealtyTrust.com.
Webcast and Conference Call
The Company will host a webcast and conference call on Tuesday, August 4, 2026 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, AHRealtyTrust.com. To participate in the call, please dial (+1) 800 715 9871 (toll-free dial-in number) or (+1) 646 307 1963 (toll dial-in number). The conference ID is 7079783. A telephonic replay will be available shortly after the conclusion of the call through Thursday, September 3, 2026. This replay may be accessed by dialing (+1) 800 770 2030 and providing passcode 7079783#. A replay of the webcast will also be available for 30 days beginning approximately two hours after the conclusion of the conference call.
About AH Realty Trust
AH Realty Trust is a pure-play, high-quality retail and mixed-use office REIT focused on identifying and realizing dominant market competitive advantages throughout the Sunbelt, mid-Atlantic and Southeast. Our company is primarily comprised of and focused on open-air shopping centers and mixed-use ecosystems within our markets.
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, 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, 2025, 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 FFO, As Adjusted is a more useful performance measure that excludes income or loss from discontinued operations related to general contracting and real estate services, multifamily, and real estate financing. Other equity REITs may not calculate FFO, As Adjusted in the same manner as we do, and, accordingly, our FFO, As Adjusted may not be comparable to such other REITs' FFO, As Adjusted.
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. Segment expenses include rental expenses and real estate taxes for our property segments. 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 retail and office real estate 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.
Total Adjusted EBITDAre is calculated as EBITDAre further adjusted for debt extinguishment losses, non-cash stock compensation, mark-to-market adjustments on interest rate derivatives, preferred dividends, accelerated amortization of intangible assets and liabilities, acquisition, development, and other pursuit costs, unrealized credit loss release or provision, non-controlling interest in investment entities, development/redevelopment net operating income, and other one-time adjustments including non-recurring bad debt and termination fees. Management believes Total Adjusted EBITDAre is useful to investors in evaluating and facilitating comparisons of our operating performance between periods and with other REITs by removing the impact of our capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from our operating results along with other non-comparable items.
For reference, as an aid in understanding the Company’s computation of NOI, NOI Cash Basis, FFO, and FFO, As Adjusted, a reconciliation of net income calculated in accordance with GAAP to NOI, NOI Cash Basis, FFO, and FFO, As Adjusted has been included further in this release.
| AH Realty Trust CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in thousands) | |||||||
| June 30, 2026 | December 31, 2025 | ||||||
| (UNAUDITED) | |||||||
| ASSETS | |||||||
| Real estate investments: | |||||||
| Income producing property | $ | 1,784,337 | $ | 1,801,279 | |||
| Held for development | — | 5,683 | |||||
| Construction in progress | 14,239 | 13,028 | |||||
| 1,798,576 | 1,819,990 | ||||||
| Accumulated depreciation | (422,439 | ) | (410,565 | ) | |||
| Net real estate investments | 1,376,137 | 1,409,425 | |||||
| Real estate investments held for sale, net | — | 4,800 | |||||
| Assets of discontinued operations | 189,913 | 800,536 | |||||
| Cash and cash equivalents | 20,662 | 40,743 | |||||
| Restricted cash | 1,547 | 1,622 | |||||
| Accounts receivable, net | 62,482 | 64,747 | |||||
| Notes receivable, net | 9,233 | — | |||||
| Equity method investments | 58,444 | 47,926 | |||||
| Operating lease right-of-use assets | 22,491 | 22,610 | |||||
| Finance lease right-of-use assets | 76,884 | 77,539 | |||||
| Acquired lease intangible assets | 69,954 | 76,408 | |||||
| Other assets | 40,217 | 50,154 | |||||
| Total Assets | $ | 1,927,964 | $ | 2,596,510 | |||
| LIABILITIES AND EQUITY | |||||||
| Indebtedness, net | $ | 955,862 | $ | 1,283,987 | |||
| Liabilities of discontinued operations | 81,011 | 286,502 | |||||
| Accounts payable and accrued liabilities | 30,340 | 36,810 | |||||
| Operating lease liabilities | 31,108 | 31,198 | |||||
| Finance lease liabilities | 85,243 | 84,835 | |||||
| Other liabilities | 29,397 | 43,986 | |||||
| Total Liabilities | 1,212,961 | 1,767,318 | |||||
| Total Equity | 715,003 | 829,192 | |||||
| Total Liabilities and Equity | $ | 1,927,964 | $ | 2,596,510 | |||
| AH Realty Trust CONDENSED CONSOLIDATED INCOME STATEMENTS (in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended June 30, | Six Months EndedJune 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (Unaudited) | |||||||||||||||
| Revenues | |||||||||||||||
| Rental revenues | $ | 52,548 | $ | 50,720 | $ | 104,865 | $ | 100,902 | |||||||
| Total revenues | 52,548 | 50,720 | 104,865 | 100,902 | |||||||||||
| Expenses | |||||||||||||||
| Rental expenses | 12,440 | 11,129 | 25,297 | 22,498 | |||||||||||
| Real estate taxes | 4,797 | 5,056 | 9,532 | 9,773 | |||||||||||
| Depreciation and amortization | 17,902 | 16,661 | 36,143 | 35,691 | |||||||||||
| General and administrative expenses | 5,002 | 4,220 | 9,718 | 11,375 | |||||||||||
| Acquisition, development, and other pursuit costs | 16 | 29 | 16 | 83 | |||||||||||
| Impairment charges | 1,894 | — | 1,894 | — | |||||||||||
| Total expenses | 42,051 | 37,095 | 82,600 | 79,420 | |||||||||||
| Loss on real estate dispositions, net | (713 | ) | — | (854 | ) | — | |||||||||
| Operating income | 9,784 | 13,625 | 21,411 | 21,482 | |||||||||||
| Interest income | 234 | 263 | 296 | 492 | |||||||||||
| Interest expense | (14,122 | ) | (15,282 | ) | (27,904 | ) | (27,719 | ) | |||||||
| Equity in income (loss) of unconsolidated real estate entities | 334 | 179 | 577 | (1,236 | ) | ||||||||||
| Gain on consolidation of real estate entities | — | 3,920 | — | 3,920 | |||||||||||
| Loss on extinguishment of debt | (523 | ) | — | (523 | ) | — | |||||||||
| Change in fair value of derivatives and other | 618 | 688 | 1,962 | (61 | ) | ||||||||||
| Unrealized credit loss (provision) release | (96 | ) | 242 | (96 | ) | 242 | |||||||||
| Other income (expense), net | 3 | 3 | 16 | (86 | ) | ||||||||||
| (Loss) income from continuing operations | (3,768 | ) | 3,638 | (4,261 | ) | (2,966 | ) | ||||||||
| Discontinued operations | |||||||||||||||
| (Loss) income from discontinued operations | (14,271 | ) | 2,512 | (43,797 | ) | 4,963 | |||||||||
| Income tax (provision) benefit from discontinued operations | (2,996 | ) | 567 | (3,359 | ) | 377 | |||||||||
| (Loss) income from discontinued operations, net of taxes | (17,267 | ) | 3,079 | (47,156 | ) | 5,340 | |||||||||
| Net (loss) income | (21,035 | ) | 6,717 | (51,417 | ) | 2,374 | |||||||||
| Net (income) loss attributable to noncontrolling interests in investment entities | (243 | ) | 77 | (265 | ) | 80 | |||||||||
| Preferred stock dividends | (2,887 | ) | (2,887 | ) | (5,774 | ) | (5,774 | ) | |||||||
| Net (loss) income attributable to common stockholders and OP Unitholders | $ | (24,165 | ) | $ | 3,907 | $ | (57,456 | ) | $ | (3,320 | ) | ||||
| AH Realty Trust RECONCILIATION OF NET (LOSS) INCOME TO FFO & FFO, AS ADJUSTED (in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (Unaudited) | |||||||||||||||
| Net (loss) income attributable to common stockholders and OP Unitholders | $ | (24,165 | ) | $ | 3,907 | $ | (57,456 | ) | $ | (3,320 | ) | ||||
| Depreciation and amortization, net(1) | 19,924 | 21,979 | 44,584 | 46,379 | |||||||||||
| Gain on consolidation of real estate entities | — | (6,915 | ) | — | (6,915 | ) | |||||||||
| Gain on operating real estate dispositions, net(2) | (16,617 | ) | — | (16,617 | ) | — | |||||||||
| Impairment of real estate assets(3) | 36,263 | — | 65,492 | — | |||||||||||
| FFO attributable to common stockholders and OP Unitholders | $ | 15,405 | $ | 18,971 | $ | 36,003 | $ | 36,144 | |||||||
| FFO attributable to general contracting and real estate services | 3,081 | (149 | ) | 3,650 | (1,764 | ) | |||||||||
| FFO attributable to multifamily | 463 | (3,185 | ) | (2,942 | ) | (2,386 | ) | ||||||||
| FFO attributable to real estate financing | (4,895 | ) | (1,817 | ) | (7,547 | ) | (3,610 | ) | |||||||
| FFO, As Adjusted available to common stockholders and OP Unitholders | $ | 14,054 | $ | 13,820 | $ | 29,164 | $ | 28,384 | |||||||
| Net (loss) income attributable to common stockholders and OP Unitholders per diluted share and unit | $ | (0.25 | ) | $ | 0.04 | $ | (0.57 | ) | $ | (0.03 | ) | ||||
| FFO attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.16 | $ | 0.19 | $ | 0.36 | $ | 0.35 | |||||||
| FFO, As Adjusted attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.14 | $ | 0.14 | $ | 0.29 | $ | 0.28 | |||||||
| Weighted-average common shares and units - diluted | 98,009 | 102,286 | 100,007 | 101,930 | |||||||||||
____________________
(1) The adjustment for depreciation and amortization excludes amortization of above and below-market ground lease assets. The adjustment for depreciation and amortization for the three and six months ended June 30, 2026 excludes
(2) The adjustment for gain on operating real estate dispositions for the six months ended June 30, 2026 excludes
(3) Impairment recognized for the three months ended June 30, 2026 represents impairment of the multifamily properties Greenside Apartments, Solis Gainesville II, and The Everly, notes receivable secured by the Solis Kennesaw real estate financing investments, and development projects that management has determined are no longer probably of execution and no longer intends to pursue development of the projects. Impairment recognized for the six months ended June 30, 2026 represents impairment of notes receivable secured by the Solis North Creek, Solis Peachtree Corners, and Solis Kennesaw real estate financing investments.
| AH Realty Trust RECONCILIATION OF NET (LOSS) INCOME TO SAME STORE NOI, CASH BASIS (in thousands) (unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Retail Same Store(1) | |||||||||||||||
| Same Store NOI, Cash Basis | $ | 16,816 | $ | 16,349 | $ | 32,994 | $ | 32,181 | |||||||
| GAAP Adjustments(2) | 1,078 | 1,301 | 2,471 | 2,468 | |||||||||||
| Same Store NOI | 17,894 | 17,650 | 35,465 | 34,649 | |||||||||||
| Non-Same Store NOI(3) | 87 | 122 | 60 | 460 | |||||||||||
| Segment NOI | 17,981 | 17,772 | 35,525 | 35,109 | |||||||||||
| Office Same Store(4) | |||||||||||||||
| Same Store NOI, Cash Basis | 13,917 | 12,846 | 26,766 | 25,605 | |||||||||||
| GAAP Adjustments(2) | 1,321 | 2,058 | 3,269 | 3,860 | |||||||||||
| Same Store NOI | 15,238 | 14,904 | 30,035 | 29,465 | |||||||||||
| Non-Same Store NOI(3) | 205 | 14 | 31 | 94 | |||||||||||
| Segment NOI | 15,443 | 14,918 | 30,066 | 29,559 | |||||||||||
| Other NOI | 1,887 | 1,845 | 4,445 | 3,963 | |||||||||||
| Total Property NOI | 35,311 | 34,535 | 70,036 | 68,631 | |||||||||||
| Depreciation and amortization | (17,902 | ) | (16,661 | ) | (36,143 | ) | (35,691 | ) | |||||||
| General and administrative expenses | (5,002 | ) | (4,220 | ) | (9,718 | ) | (11,375 | ) | |||||||
| Acquisition, development, and other pursuit costs | (16 | ) | (29 | ) | (16 | ) | (83 | ) | |||||||
| Impairment charges | (1,894 | ) | — | (1,894 | ) | — | |||||||||
| Loss on real estate dispositions, net | (713 | ) | — | (854 | ) | — | |||||||||
| Interest income | 234 | 263 | 296 | 492 | |||||||||||
| Interest expense | (14,122 | ) | (15,282 | ) | (27,904 | ) | (27,719 | ) | |||||||
| Equity income (loss) of unconsolidated real estate entities | 334 | 179 | 577 | (1,236 | ) | ||||||||||
| Gain on consolidation of real estate entities | — | 3,920 | — | 3,920 | |||||||||||
| Loss on extinguishment of debt | (523 | ) | — | (523 | ) | — | |||||||||
| Change in fair value of derivatives and other | 618 | 688 | 1,962 | (61 | ) | ||||||||||
| Unrealized credit loss (provision) release | (96 | ) | 242 | (96 | ) | 242 | |||||||||
| Other income (expense), net | 3 | 3 | 16 | (86 | ) | ||||||||||
| (Loss) income from continuing operations | (3,768 | ) | 3,638 | (4,261 | ) | (2,966 | ) | ||||||||
| Discontinued operations | |||||||||||||||
| (Loss) income from discontinued operations | (14,271 | ) | 2,512 | (43,797 | ) | 4,963 | |||||||||
| Income tax (provision) benefit from discontinued operations | (2,996 | ) | 567 | (3,359 | ) | 377 | |||||||||
| (Loss) income from discontinued operations, net of taxes | (17,267 | ) | 3,079 | (47,156 | ) | 5,340 | |||||||||
| Net (loss) income | (21,035 | ) | 6,717 | (51,417 | ) | 2,374 | |||||||||
| Net (income) loss attributable to noncontrolling interests in investment entities | (243 | ) | 77 | (265 | ) | 80 | |||||||||
| Preferred stock dividends | (2,887 | ) | (2,887 | ) | (5,774 | ) | (5,774 | ) | |||||||
| Net (loss) income attributable to common stockholders and OP Unitholders | $ | (24,165 | ) | $ | 3,907 | $ | (57,456 | ) | $ | (3,320 | ) | ||||
____________________
(1) Retail same-store portfolio for the six months ended June 30, 2026 and June 30, 2025 excludes Allied | Harbor Point Retail, Liberty Retail, Point Street Retail, The Edison Retail, and Chronicle Mill Retail, which were sold in May 2026 as part of the Multifamily Portfolio Sale First Closing. They also exclude Southern Post Retail, which is not yet stabilized.
(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 six months ended June 30, 2026 and 2025 excludes Chronicle Mill Office, which was sold in May 2026 as part of the Multifamily Portfolio Sale First Closing, and Southern Post Office, which is not yet stabilized.
| AH Realty Trust RECONCILIATION OF NET (LOSS) INCOME TO TOTAL ADJUSTED EBITDAre (in thousands) (unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net (Loss) Income Attributable to Common Stockholders and OP Unitholders | $ | (24,165 | ) | $ | 3,907 | $ | (57,456 | ) | $ | (3,320 | ) | ||||
| Excluding: | |||||||||||||||
| Depreciation and Amortization | 19,323 | 21,356 | 43,384 | 44,177 | |||||||||||
| (Gain) Loss on Real Estate Dispositions | (16,604 | ) | — | (16,463 | ) | — | |||||||||
| Loss on Consolidation of Real Estate Entities | — | (6,915 | ) | — | (6,915 | ) | |||||||||
| Impairment of Real Estate Assets | 36,264 | — | 65,493 | — | |||||||||||
| Income Tax (Benefit) Provision | 2,996 | (567 | ) | 3,359 | (377 | ) | |||||||||
| Interest Expense | 17,876 | 21,271 | 39,102 | 39,380 | |||||||||||
| Interest Expense, Depreciation, & Amortization of Unconsolidated Real Estate Entities | 2,095 | 2,801 | 4,218 | 5,783 | |||||||||||
| EBITDAre | 37,785 | 41,853 | 81,637 | 78,728 | |||||||||||
| Change in Fair Value of Derivatives and Other | (748 | ) | (648 | ) | (2,536 | ) | 562 | ||||||||
| Preferred Dividends | 2,887 | 2,887 | 5,774 | 5,774 | |||||||||||
| Loss on Extinguishment of Debt | 2,650 | — | 2,650 | — | |||||||||||
| Non-Recurring Bad Debt Adjustment | 231 | 140 | 780 | 2,306 | |||||||||||
| Non-Recurring Termination and Assignment Fee Adjustment | (132 | ) | (142 | ) | (264 | ) | (295 | ) | |||||||
| Accelerated Amortization of Intangible Assets and Liabilities | — | — | 15 | (169 | ) | ||||||||||
| Acquisition, Development, & Other Pursuit Costs | (16 | ) | 286 | (16 | ) | 340 | |||||||||
| Unrealized Credit Loss (Release) Provision | (78 | ) | (209 | ) | (1,827 | ) | (187 | ) | |||||||
| Investment Entities | 243 | (77 | ) | 265 | (80 | ) | |||||||||
| Non-Cash Stock Compensation | 1,388 | 1,364 | 2,743 | 4,828 | |||||||||||
| Redemption of REF Investment | (4,887 | ) | — | (4,887 | ) | — | |||||||||
| Dispositions | (3,109 | ) | — | (10,513 | ) | — | |||||||||
| Development/Redevelopment | (996 | ) | (475 | ) | (2,033 | ) | (1,723 | ) | |||||||
| Total Adjusted EBITDAre | $ | 35,218 | $ | 44,979 | $ | 71,788 | $ | 90,084 | |||||||
| Total Debt(1) | 1,037,085 | 1,448,237 | 1,037,085 | 1,448,237 | |||||||||||
| Cash | (35,547 | ) | (54,601 | ) | (35,547 | ) | (54,601 | ) | |||||||
| Net Debt(2) | $ | 1,001,538 | $ | 1,393,636 | $ | 1,001,538 | $ | 1,393,636 | |||||||
| Net Debt/Total Adjusted EBITDAre(3) | 7.1x | 7.7x | 7.0x | 7.7x | |||||||||||
(1) Excludes GAAP Adjustments.
(2) Reflects total debt less GAAP adjustments, cash, restricted cash, and other notes payable.
Contact:
Chelsea Forrest
AH Realty Trust
Executive Vice President of Investor Relations and Administration
Email: Chelsea.Forrest@AHRealtyTrust.com
Phone: (757) 612-4248
