Ah Realty Trust, Inc. · NYSE:AHRT
Ah Realty Trust — Armada Hoffler Properties — Q3 2022 Earnings Presentation
35 slides from Ah Realty Trust's earnings presentation, Nov 8, 2022
Slide 1: Supplemental Financial Package
1 SUPPLEMENTAL FINANCIAL PACKAGE
Slide 2: Forward-Looking Statements
2 This Supplemental Financial Package should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated November 8, 2022, which has been furnished as Exhibit 99.1 to our Form 8-K filed on November 8, 2022. The Company makes statements i
Slide 3: Board of Directors, Corporate Officers, Analyst Coverage and Corporate Profile
3 BOARD OF DIRECTORS Daniel A. Hoffler, Executive Chairman of the Board Louis S. Haddad, Vice Chairman of the Board James C. Cherry, Lead Independent Director George F. Allen, Independent Director James A. Carroll, Independent Director Dennis H. Gartman, Independent Director Eva S. Hardy, Independen
Slide 4: Highlights
4 HIGHLIGHTS • Net income attributable to common stockholders and OP Unit holders of $33.9 million, or $0.38 per diluted share, compared to $4.9 million, or $0.06 per diluted share, for the three months ended September 30, 2021. • Funds from operations attributable to common stockholders and OP Unit
Slide 5: 2022 Outlook & Assumptions
5 2022 OUTLOOK & ASSUMPTIONS OUTLOOK(1) LOW HIGH TOTAL NOI $145.2M $146.0M CONSTRUCTION SEGMENT GROSS PROFIT $7.8M $8.4M G&A EXPENSES $16.0M $16.5M INTEREST INCOME $14.6M $15.0M INTEREST EXPENSE(2) $35.4M $36.1M NORMALIZED FFO PER DILUTED SHARE $1.18 $1.20 GUIDANCE ASSUMPTIONS (1) See appendix for d
Slide 6: Summary Information
6 SUMMARY INFORMATION $ IN THOUSANDS, EXCEPT PER SHARE (1) As of market close on last day of period. (2) Excludes GAAP adjustments. (3) See appendix for definitions. (4) See appendix for 2022 multifamily occupancy calculation. (5) Total occupancy weighted by annualized base rent. Three Months Ended
Slide 7: Summary Income Statement
7 SUMMARY INCOME STATEMENT $ IN THOUSANDS, EXCEPT PER SHARE Three Months Ended Nine Months Ended 9/30/2022 9/30/2021 9/30/2022 9/30/2021 Revenues (Unaudited) Rental Revenues $53,743 $49,560 $163,602 $142,679 General Contracting Revenues 69,024 17,502 138,947 71,473 Total Revenues 122,767 67,062 302,
Slide 8: Summary Balance Sheet
8 SUMMARY BALANCE SHEET $ IN THOUSANDS 9/30/2022 12/31/2021 Assets (Unaudited) Real Estate Investments: Income Producing Property $1,797,547 $1,658,609 Held for Development 6,294 6,294 Construction in Progress 92,357 72,535 Accumulated Depreciation (316,189) (285,814) Net Real Estate Investments 1,5
Slide 9: FFO, Normalized FFO & AFFO
9 FFO, NORMALIZED FFO & AFFO(1) $ IN THOUSANDS, EXCEPT PER SHARE (1) See definitions in appendix. (2) Adjusted for the depreciation attributable to noncontrolling interests in consolidated investments. (3) Excludes gain/loss attributable to noncontrolling interests in consolidated investments and th
Slide 10: Net Asset Value Component Data
10 NET ASSET VALUE COMPONENT DATA $ AND SHARES/UNITS IN THOUSANDS (1) Excludes expenses associated with the Company’s in-house asset management division of $0.7M for the 3 months ended 9/30/2022. (2) Includes 100% of joint ventures. (3) Includes leases for spaces occupied by Armada Hoffler which are
Slide 11: Stabilized Portfolio Summary as of September 30, 2022
11 STABILIZED PORTFOLIO SUMMARY AS OF SEPTEMBER 30, 2022 SEE APPENDIX FOR FULL LIST OF PROPERTIES (1) See appendix for definitions and portfolio detail. COMMERCIAL PORTFOLIO Retail Properties # of Properties Net Rentable SF Average Age Occupied SF Occupancy(1) ABR(1) ABR per Occupied SF Town Center
Slide 12: Same Store NOI by Segment
12 SAME STORE NOI BY SEGMENT $ IN THOUSANDS (RECONCILIATION TO GAAP LOCATED IN APPENDIX) (1) Excludes expenses associated with the Company’s in-house asset management division of $0.7M for each of the 3 months ended 9/30/2022 & 9/30/2021. Three Months Ended Nine Months Ended 9/30/2022 9/30/2021 $ Ch
Slide 13: Debt to Adjusted EBITDA
13 DEBT TO ADJUSTED EBITDA $ IN THOUSANDS SEE APPENDIX FOR DEFINITIONS, CALCULATIONS, AND RECONCILIATIONS (1) Includes income and debt related to development, mezzanine, construction, and other ancillary activities outside of our stabilized portfolio. (2) Total notes payable less GAAP adjustments, c
Slide 14: Debt Management
14 DEBT MANAGEMENT $ IN THOUSANDS (1) Includes impact of non-designated interest rate caps. (2) Excludes debt subject to interest rate swap locks. (3) Includes debt subject to interest rate swap locks. (4) Excludes GAAP adjustments. (5) Represents the weighted average interest rate of the portfolio,
Slide 15: Outstanding Debt
15 OUTSTANDING DEBT $ IN THOUSANDS (1) Excludes non-designated interest rate caps. (2) Includes debt subject to interest rate swap locks. (3) Subject to a rate floor. (4) Includes debt subject to designated interest rate caps. Debt Stated Rate Effective Rate of as 9/30/2022(1) Maturity Date 2022 202
Slide 16: Capitalization & Financial Ratios
16 CAPITALIZATION & FINANCIAL RATIOS $ IN THOUSANDS, EXCEPT PER SHARE AS OF SEPTEMBER 30, 2022 (1) As of close of market 9/30/22. (2) Reflects quarterly Total Adjusted EBITDA divided by total quarterly interest expense and required principal repayment. (3) Reflects quarterly Total Adjusted EBITDA di
Slide 17: Active Development Projects
17 ACTIVE DEVELOPMENT PROJECTS $ IN THOUSANDS (1) Represents estimates that may change as the development and redevelopment process proceeds. (2) First fully-stabilized quarter. See same store definition in appendix. (3) Majority interest in joint venture with preferred return. (4) Overfunded due to
Slide 18: Preferred Investments/Mezzanine
18 PREFERRED INVESTMENTS/MEZZANINE $ IN THOUSANDS AS OF SEPTEMBER 30, 2022 (1) Represents estimates that may change as the development process proceeds. (2) Includes amortization of fees. (3) Preferred equity with economic terms and accounting consistent with a loan receivable. Solis City Park Charl
Slide 19: Third-Party Construction
19 THIRD-PARTY CONSTRUCTION $ IN THOUSANDS Adams Hill Greenville, SC Q3 2022 Q2 2022 Q1 2022 Q4 2021 Trailing 4 Quarters Revenue $69,024 $45,273 $24,650 $20,463 $159,410 Expense (66,252) (43,418) (23,821) (19,750) (153,241) Gross Profit $2,772 $1,855 $829 $713 $6,169 Operating Margin 4.0% 4.1% 3.4%
Slide 20: Acquisitions & Dispositions
20 ACQUISITIONS & DISPOSITIONS $ IN THOUSANDS (1) Represents 100% of property value of which the Company owns a 90% economic interest. (2) Anchor tenant vacant at time of sale. ACQUISITIONS Properties Location Square Feet/Units Purchase Price Cash Cap Rate Purchase Date Anchor Tenants 2022 482,000 /
Slide 21: Top Tenants by ABR
21 TOP 20 TENANTS BY ABR(1) $ IN THOUSANDS AS OF SEPTEMBER 30, 2022 (1) Excludes leases from the development and redevelopment properties that have been delivered, but not yet stabilized. Commercial Portfolio Tenant Number of Leases Lease Expiration Annualized Base Rent % of Total Annualized Base Re
Slide 22: Lease Summary
22 LEASE SUMMARY (1) Excludes leases from properties in development. OFFICE Renewals For GAAP and Cash Releasing Spread Calc: Quarter Number of Leases Signed Net Rentable SF Signed GAAP Releasing Spread Cash Releasing Spread Wtd Average Lease Term Remaining (yrs) TI & LC TI & LC per SF Q3 2022 3 22,
Slide 23: Lease Expirations
23 LEASE EXPIRATIONS(1) AS OF SEPTEMBER 30, 2022 (1) Excludes leases from properties in development and delivered, but not yet stabilized. OFFICE Year Leases Expiring Square Footage Expiring % Portfolio Net Rentable Square Feet ABR % of Portfolio ABR Available - 68,364 3.2% -$ - M-T-M 2 1,623 0.1% 6
Slide 24: Appendix: Definitions & Reconciliations
24Town Center Virginia Beach, VA APPENDIX DEFINITIONS & RECONCILIATIONS
Slide 25: Definitions
25 ANNUALIZED BASE RENT: For the properties in our retail & office portfolios, we calculate annualized base rent (“ABR”) by multiplying (a) monthly base rent (defined as cash base rent, before contractual tenant concessions and abatements, and excluding tenant reimbursements for expenses paid by us)
Slide 26: Definitions: Net Operating Income
26 NET OPERATING INCOME: We calculate Net Operating Income (“NOI”) as property revenues (base rent, expense reimbursements, termination fees and other revenue) less property expenses (rental expenses and real estate taxes). Other REITs may use different methodologies for calculating NOI, and accordi
Slide 27: Definitions
27 DEFINITIONS OCCUPANCY: The occupancy for each of our retail & office properties is calculated as (a) square footage under executed leases as of the last day of the quarter, divided by (b) net rentable square feet, expressed as a percentage. As of January 1, 2022, occupancy for our multifamily pro
Slide 28: Definitions
28 DEFINITIONS STABILIZED PROPERTY DEBT: We calculate Stabilized Property Debt as our total debt secured by our stabilized properties, excluding loans associated with our development pipeline and our unsecured line of credit. TOTAL ADJUSTED EBITDA: We calculate Total Adjusted EBITDA as net income (l
Slide 29: Property Portfolio as of September 30, 2022
29 PROPERTY PORTFOLIO AS OF SEPTEMBER 30, 2022 (1) See appendix for definitions. (2) The Company leases all or a portion of the land underlying this property pursuant to a ground lease. Retail Properties - Stabilized Location Year Built / Redeveloped Net Rentable SF Occupancy(1) ABR(1) ABR per Occup
Slide 30: Property Portfolio Cont.
30 PROPERTY PORTFOLIO CONT. AS OF SEPTEMBER 30, 2022 (1) See appendix for definitions. (2) The Company leases all or a portion of the land underlying this property pursuant to a ground lease. (3) The Company occupies 55,390 square feet at these two properties at an ABR of $1.8M, or $32.23 per leased
Slide 31: Reconciliation of Debt & EBITDA
31 $ IN THOUSANDS RECONCILIATION OF DEBT & EBITDA (1) Excludes GAAP adjustments. Three Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Property Net Operating Income $35,542 $36,702 $36,562 $32,270 Property Other Income (Expense), Net (30) (190) 104 (74) Amortization of Right of Use Assets (278
Slide 32: Capital Expenditures
32 QUARTER TO DATE(1) $ IN THOUSANDS AS OF SEPTEMBER 30, 2022 CAPITAL EXPENDITURES (1) Excludes activity related to held for sale, acquired and/or disposed properties. YEAR TO DATE(1) Leasing Commissions Lease Incentive Tenant Improvements Land Improvements Building Improvements Furniture Fixtures &
Slide 33: Reconciliation to Property Portfolio NOI
33 RECONCILIATION TO PROPERTY PORTFOLIO NOI $ IN THOUSANDS (1) Includes expenses associated with the Company’s in-house asset management division. Three months ended 9/30 Nine Months Ended 9/30 2022 2021 2022 2021 Office Same Store Rental revenues $10,315 $10,252 $30,861 $30,752 Property expenses 3,
Slide 34: Reconciliation to GAAP Net Income
34 RECONCILIATION TO GAAP NET INCOME $ IN THOUSANDS Office Retail Multifamily Total Rental Properties General Contracting & Real Estate Services Total Segment revenues 18,687$ 21,223$ 13,833$ 53,743$ 69,024$ 122,767$ Segment expenses 6,930 5,626 5,645 18,201 66,252 84,453 Net operating income 11,757
Slide 35: Reconciliation of Net Income to Adjusted EBITDA
35 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA $ IN THOUSANDS Three Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Net income attributable to common stockholders and OP unitholders $33,899 $27,752 $9,289 $361 Excluding: Depreciation and amortization 17,527 18,781 18,557 16,616 Loss (gain)
Armada Hoffler Properties — Q3 2022 Earnings Presentation on 6ix