Ah Realty Trust, Inc. · NYSE:AHRT
Ah Realty Trust — Armada Hoffler Properties — Investor Day (September 2013)
56 slides from Ah Realty Trust's investor day presentation, Sep 24, 2013
Slide 1: Welcome – Investor Day 2013
Exhibit 99.1 Welcome – Investor Day 2013 Julie Trudell, Vice President of Investor Relations
Slide 2: Forward-Looking Statements
1 Forward-Looking Statements We make statements in this presentation that are forward-looking statements within the meaning of the federal securities laws. In particular, statements pertaining to our sources and uses of capital, the availability and terms of third party financing, our progress in de
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Slide 4: Company Overview
3 Company Overview Stable Portfolio Development Pipeline Construction Fee Business Agenda
Slide 5: Property Key
4 Property Key National Reach with Strategic Mid- Atlantic Focus Current Portfolio & Development Pipeline Previous Construction or Development Projects Office Retail Multifamily Pipeline A HH ’ s portfolio is concentrated in attractive markets with diverse growth drivers and favorable supply/demand
Slide 6: Construction, Development and Corporate Relationships
5 Construction, Development and Corporate Relationships Public & Private Partnerships Armada Hoffler has built irreplaceable relationships and credibility over decades executing large, complex, multi-use projects: Provides unique access Drives repeat business National referral base Sustainable compe
Slide 7: Executive Team
6 Executive Team Daniel A. Hoffler Chairman of the Board A. Russell Kirk Vice Chairman of the Board Louis S. Haddad President & CEO Anthony P. Nero President of Development Eric Apperson President of Construction Shelly Hampton, President of Asset Management Eric L. Smith VP of Operations Michael P.
Slide 8: Company Overview
7 Company Overview Stable Portfolio Development Pipeline Construction Fee Business Agenda
Slide 9: Historical Occupancy by Asset Class
Historical Office Occupancy (1) 8 Historical Retail Occupancy (1) Historical Multifamily Occupancy (1) 98.3% 98.8% 98.2% 98.0% 96.0% 92.4% 94.1% 93.4% 50% 60% 70% 80% 90% 100% 2006 2007 2008 2009 2010 2011 2012 2013 Q2 97.6% 97.6% 95.6% 94.6% 93.4% 93.5% 93.9% 94.6% 50% 60% 70% 80% 90% 100% 2006 200
Slide 10: Well-managed Office and Retail Lease Terms
9 Well-managed Office Lease Terms Well-managed Retail Lease Terms Well Managed Lease Terms _____________________ (1) As of 6/30/13 Year of Lease Expirations (% Office Portfolio ABR) (1) (% Retail Portfolio ABR) (1) Year of Lease Expirations 4.2% 6.4% 10.7% 3.2% 6.4% 15.0% 5.1% 3.2% 3.9% 5.2% 7.7% 29
Slide 11: Company Overview
10 Company Overview Stable Portfolio Development Pipeline Construction Fee Business Agenda
Slide 12: Value Creation of Pipeline Portfolio
11 Value Creation of Pipeline Portfolio $12M - $14M $8M - $10M ~3 Years Stabilized Portfolio NOI
Slide 13: Company Overview
12 Company Overview Stable Portfolio Development Pipeline Construction Fee Business Agenda
Slide 14: CEO Remarks
CEO Remarks Lou Haddad
Slide 15: Development Update
Development Update Tony Nero, President of Development
Slide 16: Development Pipeline Projects
15 $ in thousands Property Location Property Type Estimated Cost Estimated Date of Completion 4525 Main Street (Main Street Office) Virginia Beach, VA Office 50,863 $ Q3 2014 Encore Apartments (Main Street Apartments) Virginia Beach, VA Multifamily 32,845 Q3 2014 Whetstone Apartments (Jackson Street
Slide 17: 4525 Main Street
16 4525 Main Street
Slide 18: Encore Apartments
17 Encore Apartments
Slide 19: Whetstone Apartments
18 Whetstone Apartments
Slide 20: Whetstone Apartments
19 Whetstone Apartments
Slide 21: Sandbridge Commons
20 Sandbridge Commons
Slide 22: Brooks Crossing
21 21 Brooks Crossing
Slide 23: Greentree Shopping Center
22 Greentree Shopping Center
Slide 24: JHU Charles Village Mixed-Use Project
JHU CHARLES VILLAGE MIXED-USE PROJECT PEDESTRIAN VIEW ALONG ST. PAUL ST.
Slide 25: Liberty Apartments
24 Liberty Apartments
Slide 26: Development Update
Development Update Tony Nero, President of Development
Slide 27: The Stable Portfolio
The Stable Portfolio Shelly Hampton, President of Asset Management
Slide 28: Asset Management Objectives
27 Asset Management Objectives • Value Maximization • Risk Management Diverse, Stable Portfolio Lease Expiration and Rollover Strategies Agenda
Slide 29: Asset Management Objectives
28 Asset Management Objectives • Value Maximization • Risk Management Diverse, Stable Portfolio Lease Expiration and Rollover Strategies Agenda
Slide 30: Asset Management Objectives
29 Asset Management Objectives • Value Maximization • Risk Management Diverse, Stable Portfolio Lease Expiration and Rollover Strategies Agenda
Slide 31: Portfolio by Asset Class
30 Portfolio by Asset Class Office • 7 properties 1.0 million SF • 93.4% occupied • 294,000 SF in pipeline Retail • 15 properties 1.1 million SF • 94.6% occupied • 90,600 SF in pipeline Multi-Family • 2 properties totaling 626 units • 91.2% occupied • Estimated 688 units in pipeline Diverse, Stable
Slide 32: Asset Management Objectives
31 Asset Management Objectives • Value Maximization • Risk Management Diverse, Stable Portfolio Lease Expiration and Rollover Strategies Agenda
Slide 33: Strategy for Office Lease Rollover
32 Well-managed Lease Terms Historical Occupancy (1) Strategy for Office Lease Rollover _____________________ (1) Occupancy as of 12/31 for each period except for 2013 Q2 (2) As of 6/30/13 Year of Lease Expirations 98.3% 98.8% 98.2% 98.0% 96.0% 92.4% 94.1% 93.4% 50% 60% 70% 80% 90% 100% 2006 2007 20
Slide 34: Strategies for Office Lease Vacancies
33 Strategies for Office Lease Vacancies 6.6% Office Vacancy - by Property _____________________ As of 6/30/13 One Columbus Oyster Point Armada Hoffler Tower Two Columbus Richmond Tower
Slide 35: Retail: Attractive Portfolio Fundamentals
34 Well-managed Lease Terms Historical Occupancy (1) Representative Tenants Attractive Portfolio Fundamentals Retail _____________________ (1) Occupancy as of 12/31for each period except for 2013 Q2 (2) Excludes ground leases (3) As of 6/30/13 Year of Lease Expirations (% Retail Portfolio ABR) (2)(3
Slide 36: Strategy for Retail Lease Vacancy
35 Strategy for Retail Lease Vacancy 5.4% Retail Vacancy - by Property _____________________ As of 6/30/13 Hanbury Village North Point Center Dick's at Town Center Studio 56 Retail Bermuda Crossroads Broad Creek Shopping Center Gainsborough Square
Slide 37: Multifamily Overview
Historical Occupancy (1) 36 Multifamily Overview The Cosmopolitan Apartments Virginia Beach, VA 342 units Built in 2006 (3) Smith’s Landing Blacksburg, VA 284 units Built in 2009 _____________________ (1) Occupancy as of 12/31for each period except for 2013 Q2 (2) Represents estimates that may chang
Slide 38: The Stable Portfolio
The Stable Portfolio Shelly Hampton, President of Asset Management
Slide 39: Construction Insight
Construction Insight Eric Apperson, President of Construction
Slide 40: Benefits of Construction Platform
39 • Support development pipeline – Provide accurate insight into construction cost environment – Manage construction costs throughout development project – Manage construction risks throughout development projects – Ensure timely delivery of REIT’s development pipeline projects • Source both third-
Slide 41: Managing Successful Construction Projects – Risk Management
40 Risk: Subcontractor financial status, safety record, insurance coverage, licensure, staff, etc. – Solution: Prequalification process conducted by our staff accountants, safety department, preconstruction department and executives. Risk: Owner contract terms – Solution: Complete review and specifi
Slide 42: Managing Successful Construction Projects – Risk Management (continued)
41 • Risk: Subcontractors paying their suppliers and sub-subcontractors – Solution: Conduct monthly supplier payment inquiries and/or require joint checks. • Risk: Stored material payments to subcontractors – • Risk: Deposits for material – Solution: Require an advanced payment bond to ensure that w
Slide 43: Managing Successful Construction Projects – Risk Management (continued)
42 • Risk: Subcontract and supplier procurement – Solution: Require a material and purchasing tracking log for each project. These logs determine the dates for bidding the trade work, contracting the trade work, material and system submittal and show fabrication and delivery time frames. • Risk: Sch
Slide 44: Case Study on a Challenging Construction Project: Four Seasons / Legg Mason
43 Case Study on a Challenging Construction Projects Four Seasons / Legg Mason • Slurry Wall – 30” thick slurry wall installed around a 3.5 acre site within 20’ of Baltimore’s Inner Harbor (Patapsco River). • Mass excavation – Excavate 240,000 cubic yards of dirt, to a depth of 65’ below street leve
Slide 45: Harbourside Project
44 Harbourside Project Case Study on a Challenging Construction Projects • The project is in very close proximity to both the Potomac River and Rock Creek. • There were historic piles (George Washington era) in Rock Creek that could not be disturbed requiring detailed protection of the creek bank. •
Slide 46: Third Party Construction Pipeline Update
45 • $117.3 million in Total Value under Contract • $59.1 million in Cost in Place • $58.2 million in Cost to Complete • $200.0 million in Total Value under Negotiation Third Party Construction Pipeline Update _____________________ As of 6/30/13
Slide 47: Construction Insight
Construction Insight Eric Apperson, President of Construction
Slide 48: Financial Highlights
Financial Highlights Mike O’Hara, Chief Financial Officer
Slide 49: 2Q Highlights
48 2Q 13 Highlights Managing the Balance Sheet Second half of 2013 Agenda
Slide 50: Pro Forma Core Funds from Operations
49 Pro Forma Core Funds from Operations $ in Thousands Three months ended Funds from Operations (FFO) 6/30/2013 (Unaudited) Net income $8,404 Depreciation and amortization 4,020 Gain on acquisitions (9,460) Real estate joint ventures (78) FFO, as defined by NAREIT 2,886 Pro Forma FFO FFO, as defined
Slide 51: 2Q13 Highlights
50 2Q13 Highlights Managing the Balance Sheet Second half of 2013 Agenda
Slide 52: Debt Maturity
51 Debt Maturity $ in Thousands _____________________ As of 6/30/13 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000
Slide 53: 2Q13 Highlights
52 2Q13 Highlights Managing the Balance Sheet Second half of 2013 Agenda
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Slide 55: Summation
54 Summation Development Construction Asset Management
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Armada Hoffler Properties — Investor Day (September 2013) on 6ix