Ah Realty Trust, Inc. · NYSE:AHRT
Ah Realty Trust — Armada Hoffler Properties — Q2 2020 Earnings Presentation
36 slides from Ah Realty Trust's earnings presentation, Aug 4, 2020
Slide 1: Armada Hoffler
ead sak ARMADA HOFFLER feed -
Slide 2: Table of Contents
TABLE OF CONTENTS 2 03 Forward Looking Statements 04 Corporate Profile 05 Highlights 06 2020 Outlook & Assumptions 07 Summary Information 08 Net Asset Value Component Data 09 Summary Balance Sheet 10 Summary Income Statement 11 FFO, Normalized FFO & Adjusted FFO 12 Outstanding Debt 13 Debt Informati
Slide 3: Forward-Looking Statements
3 F O R W A R D - L O O K I N G S TAT E M E N T S This Supplemental Financial Package should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated August 4, 2020, which has been furnished as Exhibit 99.1 to our Form 8-K filed on Au
Slide 4: Corporate Profile
CORPORATE PROFILE 4 Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties lo
Slide 5: Highlights
HIGHLIGHTS 5 • Net income attributable to common stockholders and OP Unit holders of $11.2 million, or $0.14 per diluted share, compared to $6.0 million, or $0.08 per diluted share, for the three months ended June 30, 2019. • Funds from operations attributable to common stockholders and OP Unit hold
Slide 6: 2020 Outlook & Assumptions
2020 OUTLOOK & ASSUMPTIONS 6 OUTLOOK LOW HIGH Total NOI $107.0M $108.9M Construction Segment Gross Profit $7.3M $8.0M G&A Expenses $12.9M $13.5M Mezzanine Interest Income $19.5M $20.0M Interest Expense $29.3M $30.3M Normalized FFO per diluted share $1.09 $1.13 GUIDANCE ASSUMPTIONS • Disposition of t
Slide 7: Summary Information
SUMMARY INFORMATION 7 $ IN THOUSANDS, EXCEPT PER SHARE DATE Three months ended 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 OPERATIONAL METRICS Net income attributable to common stockholders and OP unit holders $11,178 $8,160 $7,215 $9,869 $5,992 Net income attributable to common stockholders
Slide 8: Net Asset Value Component Data
NET ASSET VALUE COMPONENT DATA $ IN THOUSANDS 8 Stabilized Portfolio NOI (Cash)(1) Third-Party General Contracting and Real Estate Services Three months ended Annualized Trailing 12 Months 6/30/2020 6/30/2020 General Contracting Gross Profit $6,024 Stabilized Virginia Beach (VB) Town Center (1) Offi
Slide 9: Summary Balance Sheet
SUMMARY BALANCE SHEET 9 $ IN THOUSANDS As of 6/30/2020 12/31/2019 Assets (Unaudited) Real estate investments: Income producing property $1,431,527 $1,460,723 Held for development 13,607 5,000 Construction in progress 108,444 140,601 Accumulated depreciation (232,108) (224,738) Net real estate invest
Slide 10: Summary Income Statement
SUMMARY INCOME STATEMENT 10 IN THOUSANDS, EXCEPT PER SHARE DATA Three months ended Six months ended 6/30/2020 6/30/2019 6/30/2020 6/30/2019 Revenues (Unaudited) Rental revenues $39,915 $36,378 $82,204 $67,287 General contracting and real estate services revenues 57,398 21,444 104,666 38,480 Total Re
Slide 11: FFO, Normalized FFO & AFFO
FFO, NORMALIZED FFO & AFFO (1) 11 IN THOUSANDS, EXCEPT PER SHARE DATA Three months ended (Unaudited) 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 Funds From Operations Net income attributable to AHH and OP unit holders $11,178 $8,160 $7,215 $9,869 $5,992 Earnings per diluted share $0.14 $0.11
Slide 12: Outstanding Debt
OUTSTANDING DEBT 12 $ IN THOUSANDS Debt Maturities & Principal Payments Effective Rate as Outstanding as of Debt Stated Rate of 6/30/2020 Maturity Date 2020 2021 2022 2023 2024 Thereafter 6/30/2020 Secured Notes Payable - Core Debt Hoffler Place L+3.24% 3.40% Jan-2021 - $30,896 $30,896 Southgate Squ
Slide 13: Debt Information
DEBT INFORMATION 13 $ IN THOUSANDS Debt Maturities $350,000 5.0% $300,000 4.0% $250,000 3.4% 3.1% 3.0% $200,000 2.8% 2.7% $150,000 1.9% 2.0% $100,000 1.0% $50,000 $0 0.0% 2020 2021 2022 2023 2024 Thereafter⁽¹⁾ Fixed-Rate Debt Variable-Rate Debt Weighted Average Interest Rate Total Debt Composition I
Slide 14: Core Debt to Core EBITDA
CORE DEBT TO CORE EBITDA (1) 14 $ IN THOUSANDS Three months ended 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 Net income attributable to common stockholders and OP unit holders $11,178 $8,160 $7,215 $9,869 $5,992 Excluding: Depreciation and amortization (2) 13,644 14,092 15,285 15,057 13,145
Slide 15: Capitalization & Financial Ratios
CAPITALIZATION & FINANCIAL RATIOS 15 $ IN THOUSANDS AS OF JUNE 30, 2020 Debt % of Total Principal Balance Unsecured credit facility 8% $80,000 Unsecured term loans 21% 205,000 Equity Debt Mortgages payable 71% 671,726 Total debt $956,726 47% 12% 4% 53% 11% Liquidation Value Preferred Equity Shares P
Slide 16: Property Portfolio
PROPERT Y PORTFOLIO 16 AS OF JUNE 30, 2020 Net Rentable Square Feet (RSF)(1) Development/ Development/ Town Unencumbered Redevelopment Core Redevelopment ABR per (2) Property Anchor Tenant(s) Location Center ABR Year Built Core Properties Properties Total Occupancy Leased(2) ABR(3) Leased SF(3) Reta
Slide 17: Property Portfolio Cont.
PROPERT Y PORTFOLIO CONT. 17 AS OF JUNE 30, 2020 Net Rentable Square Feet (RSF) (1) Town Unencumbered Core Development Core Development Office Properties Anchor Tenant Location Center ABR Year Built Properties Properties Total Occupancy(2) Leased(2) ABR(3) ABR per Leased SF(3) 4525 Main Street Clark
Slide 18: Development & Redevelopment Pipeline
D E V E LO P M E N T & R E D E V E LO P M E N T P I P E L I N E 18 $ IN THOUSANDS Schedule (1) Property % Leased or Construction Initial Stabilized Estimated Loan Cost to Estimated(1) AHH Ownership % Anchor Tenants Projects Type LOI Start Occupancy Operation(2) Cost (1) Commitment Date Under Develop
Slide 19: Mezzanine Investments
MEZZANINE INVESTMENTS 19 $ IN THOUSANDS Schedule (1) Principal Property % Leased Initial Mezzanine Mezzanine Type Estimated(1) or LOI Occupancy Loan Maturity Interest Rate Financing Interest QTD Investments with Discounted Purchase Options Nexton Square-Phase I Mixed-use 118,000 sf 90% 3Q19 4Q20 10%
Slide 20: Acquisitions & Dispositions
ACQUISITIONS & DISPOSITIONS 20 $ IN THOUSANDS ACQUISITIONS Reinvested $ Value of Cash Cap Properties Location Square Feet Purchase Price (1) 1031 Proceeds OP Units/Stock(2) Rate Purchase Date Anchor Tenants Thames Street Wharf Baltimore, MD 263,426 $101,000 $ - $ - 7.1% 2Q19 Morgan Stanley, JHU Medi
Slide 21: Construction Business Summary
CONSTRUCTION BUSINESS SUMMARY 21 $ IN THOUSANDS Total Contract Work in Place as Estimated Date Highlighted Projects Location Value of 6/30/2020 Backlog of Completion The Interlock Atlanta, GA $93,714 $71,686 $22,028 4Q 2020 27th Street Garage and Apartments Virginia Beach, VA 80,378 25,287 55,091 3Q
Slide 22: Same Store NOI by Segment
SAME STORE NOI BY SEGMENT 22 $ IN THOUSANDS (RECONCILIATION TO GAAP LOCATED IN APPENDIX ON PG. 36) Three months ended Six months ended 6/30/2020 6/30/2019 $ Change % Change 6/30/2020 6/30/2019 $ Change % Change Office (1) (Unaudited) (Unaudited) Revenue $6,349 $6,642 ($293) -4.4% $10,459 $10,754 ($2
Slide 23: Top 10 Tenants by ABR
TOP 10 TENANTS BY ABR (1) 23 $ IN THOUSANDS AS OF JUNE 30, 2020 Office Portfolio Number Lease Annualized Base % of Office Portfolio % of Total Portfolio Tenant of Leases Expiration Rent Annualized Base Rent Annualized Base Rent Morgan Stanley 2 2023 ; 2027 $ 5,879 16.7% 4.4% Clark Nexsen 1 2029 2,63
Slide 24: Lease Summary
LEASE SUMMARY 24 OFFICE Renewal Lease Summary GAAP Cash Number of Weighted Leases Net Rentable SF Leases Net Rentable Contractual Prior Rent Releasing Contractual Prior Rent Releasing Average Lease TI & LC Quarter Signed Signed Expiring SF Expiring Rent per SF per SF Spread Rent per SF per SF Spread
Slide 25: Office Lease Expirations
OFFICE LEASE EXPIRATIONS 25 AS OF JUNE 30, 2020 % Portfolio Net % of Portfolio Annualized Base Number of Leases Square Footage of Rentable Square Annualized Base Annualized Base Rent per Leased Year Expiring Leases Expiring Feet Rent Rent Square Foot Available - 38,819 3.0% $ - - $ - M-T-M 2 - - 2,4
Slide 26: Retail Lease Expirations
RETAIL LEASE EXPIRATIONS 26 AS OF JUNE 30, 2020 % Portfolio Net % of Portfolio Annualized Base Number of Leases Square Footage of Rentable Square Annualized Base Annualized Base Rent per Leased Year Expiring Leases Expiring(1) Feet Rent (1) Rent Square Foot Available - 181,182 5.1% $ - - $ - M-T-M 1
Slide 27: COVID-19 Overall Collections
COVID-19 OVERALL COLLECTIONS AS OF JULY 31, 2020 27 2Q20 C O L L E C T I O N S (3) COLLECTIONS BY MONTH(1)(2) TENANT BASE DEFERRED OR COLLECTION RENT + CAM COLLECTED EXPECTED WRITTEN OFF OR ABATED Period $ $ % $ % $ % April 12,465 10,568 85% 1,567 13% 330 2% 11% May 12,367 10,634 86% 1,474 12% 259 2
Slide 28: COVID-19 Retail 2Q20 Collections
C OV I D - 19 R E TA I L 2 Q 2 0 C O L L E C T I O N S ( 1 ) ( 2 ) 28 AS OF JULY 31, 2020 DEFERRED OR WRITTEN OFF OR AMOUNT AMOUNT OF CATEGORY COLLECTED STATUS TENANTS COLLECTION EXPECTED ABATED DEFERRED(3) DEFERRAL % National 71% 27% 3% Paid in Full 314 - 0% Local/Regional 73% 19% 8% Granted Deferr
Slide 29: Appendix: Definitions & Reconciliations
29 APPENDIX D E F I N I T I O N S & R E C O N C I L I AT I O N S Town Center Virginia Beach, VA
Slide 30: Definitions
DEFINITIONS 30 NET OPERATING INCOME: We calculate Net Operating Income (“NOI”) as property revenues (base rent, expense reimbursements and other revenue) less property expenses (rental expenses and real estate taxes). Other REITs may use different methodologies for calculating NOI, and accordingly,
Slide 31: Definitions
DEFINITIONS 31 ADJUSTED FUNDS FROM OPERATIONS: We calculate Adjusted Funds From Operations (“AFFO”) as Normalized FFO adjusted for the impact of non-cash stock compensation, tenant improvement, leasing commission and leasing incentive costs associated with second generation rental space, capital exp
Slide 32: Definitions
DEFINITIONS 32 SAME STORE PORTFOLIO: We define same store properties as those that we owned and operated and that were stabilized for the entirety of both periods compared. We generally consider a property to be stabilized upon the earlier of: (i) the quarter after the property reaches 80% occupancy
Slide 33: Same Store vs. Non-Same Store Properties
SAME STORE VS. NON -SAME STORE PROPERTIES 33 Three Months Ended Six Months Ended Three Months Ended Six Months Ended 6/30/2020 to 2019 6/30/2020 to 2019 6/30/2020 to 2019 6/30/2020 to 2019 Same Non-Same Same Non-Same Same Non-Same Same Non-Same Store Store Store Store Store Store Store Store Retail
Slide 34: Reconciliation to Property Portfolio NOI
R E C O N C I L I AT I O N TO P R O P E R T Y P O R T F O L I O N O I 34 $ IN THOUSANDS Three months ended 6/30 Six months ended 6/30 2020 2019 2020 2019 Office Same Store(1) Rental revenues $6,349 $6,642 $10,459 $10,754 Property expenses 2,226 2,199 3,801 3,722 NOI 4,123 4,443 6,658 7,032 Non-Same
Slide 35: Reconciliation to Property Portfolio NOI
R E C O N C I L I AT I O N TO P R O P E R T Y P O R T F O L I O N O I 35 $ IN THOUSANDS Three months ended 6/30/2020 Diversified Portfolio Office Retail Multifamily Total NOI - Cash Basis $2,805 $8,662 $4,035 $15,502 GAAP Adjustments 444 3,958 377 4,779 Elimination of intercompany rent (72) - - (72)
Slide 36: Reconciliation to GAAP Net Income
RECONCI LI ATI ON TO G AAP NET I NCOM E 36 $ IN THOUSANDS Three months ended 6/30/2020 Total Rental General Contracting & Office Retail Multifamily Properties Real Estate Services Total Segment revenues $ 10,494 $ 18,714 $ 10,707 $ 39,915 $ 57,398 $ 97,313 Segment expenses 3,519 4,465 4,558 12,542 5
Armada Hoffler Properties — Q2 2020 Earnings Presentation on 6ix