Ah Realty Trust, Inc. · NYSE:AHRT
Ah Realty Trust — Armada Hoffler Properties — Q4 2017 Earnings Presentation
33 slides from Ah Realty Trust's earnings presentation, Feb 6, 2018
Slide 1: 4Q 2017 Supplemental Financial Package
1 4Q 2017 | SUPPLEMENTAL FINANCIAL PACKAGE
Slide 2: Table of Contents
2Table of Contents 3 Forward Looking Statements 4 Corporate Profile 5 Highlights 6 Summary Information 7 Net Asset Value Component Data 8 Summary Balance Sheet 9 Summary Income Statement 10 FFO, Normalized FFO & Adjusted FFO 11 Outstanding Debt 12 Core Debt to Core EBITDA 13 Debt Information 14 Capi
Slide 3: Forward Looking Statements
3Forward Looking Statements This Supplemental Financial Package should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated February 6, 2018, which has been furnished as Exhibit 99.1 to our Form 8-K filed on February 6, 2018. The
Slide 4: Corporate Profile
4 Analyst Coverage Corporate Profile Armada Hoffler Properties, Inc. (NYSE:AHH) is a full service real estate company that develops, constructs, acquires and manages institutional-grade office, retail and multifamily properties in the Mid-Atlantic and Southeastern United States. The Company also pro
Slide 5: Highlights
5Highlights • Net income of $5.8 million, or $0.09 per diluted share, for the quarter ended December 31, 2017 compared to net income of $5.1 million, or $0.09 per diluted share, for the quarter ended December 31, 2016. Net income of $29.9 million, or $0.50 per diluted share, for the year ended Decem
Slide 6: Summary Information
6Summary Information In thousands, except per share data (1) Excludes gains on dispositions of real estate and mark-to-market adjustments on interest rate derivatives (2) Includes common shares and OP units (3) Excludes unamortized GAAP adjustments (4) Office and retail occupancy based on leased squ
Slide 7: Net Asset Value Component Data
7Net Asset Value Component Data In thousands (1) Includes leases for space occupied by Armada Hoffler which are eliminated for GAAP purposes Stabilized Portfolio NOI (Cash) Taxable REIT Subsidiary (TRS) Three months ended Annualized Trailing 12 Months 12/31/2017 12/31/2017 General contracting Gross
Slide 8: Summary Balance Sheets
8Summary Balance Sheets $ in thousands 12/31/2017 12/31/2016 Assets (Unaudited) Real estate investments: Income producing property $910,686 $894,078 Held for development 680 680 Construction in progress 83,071 13,529 Accumulated depreciation (164,521) (139,553) Net real estate investments 829,916 76
Slide 9: Summary Income Statement
9Summary Income Statement In thousands, except per share data Three months ended Year ended 12/31/2017 12/31/2016 12/31/2017 12/31/2016 Revenues (Unaudited) (Unaudited) Rental revenues $27,654 $26,516 $108,737 $99,355 General contracting and real estate services 32,643 50,475 194,034 159,030 Total R
Slide 10: FFO, Normalized FFO & Adjusted FFO
10 (1) See definitions on pages 28-29 (2) Excludes gain on non-operating real estate of $0.5M for the three months ended 9/30/2017 and the year ended December 31, 2017, as well as $0.4M for the year ended December 31,2016. (3) Excludes development, redevelopment, and first generation space FFO, Norm
Slide 11: Debt Maturities & Principal Payments
11 Debt Maturities & Principal Payments Debt Stated Rate Effective Rate as of 12/31/2017 Maturity Date 2018 2019 2020 2021 2022 Thereafter Outstanding as of 12/31/2017 Secured Notes Payable - Core Debt Sandbridge Commons L+1.75% 3.31% 1/17/2018 (1) $8,468 $8,468 Columbus Village Note 1 L+2.00% 3.56%
Slide 12: Core Debt to Core EBITDA
12Core Debt to Core EBITDA(1) $ in thousands (1) See definitions on page 29 (2) Excludes GAAP Adjustments Three months ended 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016 Net Income $5,768 $10,461 $4,943 $8,753 $5,145 Excluding: Interest expense 4,157 4,253 4,494 4,535 4,573 Income tax (56) 29
Slide 13: Debt Information
13Debt Information $ in thousands (1) Excludes debt subject to interest rate swap locks (2) Includes debt subject to interest rate swap locks (3) Excludes GAAP adjustments Fixed-rate & Hedged Debt Debt Maturities & Principal Payments $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160
Slide 14: Capitalization & Financial Ratios
14Capitalization & Financial Ratios $ in thousands Capitalization as of December 31, 2017 Capital Structure as of December 31, 2017 Debt % of Total Carrying Value Unsecured Credit Facility 13% $66,000 Unsecured Term Loans 29% 150,000 Mortgages Payable 58% 307,412 Total Debt $523,412 Equity % of Tota
Slide 15: Property Portfolio
15Property Portfolio As of 12/31/17 Net Rentable Square Feet (RSF)(1) Property Anchor Tenant(s) Location Town Center Unencumbered ABR Year Built Core Properties Development Properties Total Core Occupancy(2) Development Leased(2) ABR(3) ABR per Leased SF(3) Retail Properties 249 Central Park Retail
Slide 16: Property Portfolio footnotes
16 (1) The net rentable square footage for each of our retail & office properties is the sum of (a) the square footage of existing leases, plus (b) for available space, management’s estimate of net rentable square footage based, in part, on past leases. The net rentable square footage included in of
Slide 17: Development Pipeline
17Development Pipeline $ in thousands Town Center Phase VI Meeting Street One City Center Point Street Apts. (1) Represents estimates that may change as the development process proceeds (2) First full stabilized quarter (3) AHH earns a preferred return on equity prior to any distributions to JV Part
Slide 18: Acquisitions & Dispositions
18Acquisitions & Dispositions $ in thousands (1) Contractual purchase price (2) Value of OP Units/Stock at issuance (3) Anchor tenant vacated 12/31/16, which would represent a 2.5% Cash Cap Rate ACQUISITIONS Properties Location Square Feet Purchase Price(1) Reinvested 1031 Proceeds $ Value of OP Uni
Slide 19: Construction Business Summary
19Construction Business Summary $ in thousands Gross Profit Summary Q4 2017 Trailing 12 Months Revenue $32,643 $194,034 Expense (32,002) (186,590) Gross Profit $641 $7,444 (Unaudited) Location Total Contract Value Work in Place as of 12/31/2017 Backlog Estimated Date of Completion Highlighted Projec
Slide 20: Same Store NOI by Segment
20 (1) See page 30 for Same Store vs. Non – Same Store Properties Same Store NOI by Segment $ in thousands (Reconciliation to GAAP located in appendix pg. 31) Three months ended Year ended 12/31/2017 12/31/2016 $ Change % Change 12/31/2017 12/31/2016 $ Change % Change Office(1) (Unaudited) (Unaudite
Slide 21: Top Tenants by Annualized Base Rent
21Top 10 Tenants by Annualized Base Rent $ in thousands As of December 31, 2017 Office Portfolio Tenant Number of Leases Lease Expiration Annualized Base Rent % of Office Portfolio Annualized Base Rent % of Total Portfolio Annualized Base Rent Clark Nexsen 1 2029 $ 2,537 12.7% 2.7% Hampton Universit
Slide 22: Office Lease Summary
22Office Lease Summary (1) Excludes new leases from properties in development Renewal Lease Summary GAAP Cash Quarter Number of Leases Signed Net rentable SF Signed Leases Expiring Net rentable SF Expiring Contractual Rent per SF Prior Rent per SF Releasing Spread Contractual Rent per SF Prior Rent
Slide 23: Office Lease Expirations
23Office Lease Expirations (1) Includes new leases from properties in development 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% - 50,000 100,000 150,000 200,000 Leased Square Feet % ABR of Office Portfolio Year of Lease Expiration Number of Leases Expiring Square Footage of Leases Expiring(1) % Portfolio Net Re
Slide 24: Retail Lease Summary
24Retail Lease Summary (1) Excludes new leases from properties in development Renewal Lease Summary GAAP Cash Quarter Number of Leases Signed Net rentable SF Signed Leases Expiring Net rentable SF Expiring Contractual Rent per SF Prior Rent per SF Releasing Spread Contractual Rent per SF Prior Rent
Slide 25: Retail Lease Expirations
25Retail Lease Expirations (1) Includes new leases from properties in development Year of Lease Expiration Number of Leases Expiring Square Footage of Leases Expiring(1) % Portfolio Net Rentable Square Feet Annualized Base Rent % of Portfolio Annualized Base Rent Annualized Base Rent per Leased Squa
Slide 26: Appendix: Definitions & Reconciliations
26 Appendix Definitions & Reconciliations
Slide 27: Definitions
27Definitions 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, o
Slide 28: Definitions
28Definitions Normalized Funds From Operations: We calculate Normalized Funds From Operations (“Normalized FFO") as FFO calculated in accordance with the standards established by NAREIT, adjusted for acquisition, development and other pursuit costs, gains or losses from the early extinguishment of d
Slide 29: Definitions
29Definitions Adjusted EBITDA: We calculate Adjusted EBITDA as net income (loss) (calculated in accordance with GAAP), excluding interest expense, income taxes, depreciation and amortization, gains (or losses) from sales of depreciable operating property and mark- to-market adjustments on interest r
Slide 30: Same Store vs. Non-Same Store
30Same Store vs. Non-Same Store Same Store Non-Same Store Same Store Non-Same Store Same Store Non-Same Store Same Store Non-Same Store Retail Properties Retail Properties (Continued) 249 Central Park Retail X X Sandbridge Commons X X Alexander Pointe X X Socastee Commons X X Bermuda Crossroads X X
Slide 31: Reconciliation to Property Portfolio NOI
31Reconciliation to Property Portfolio NOI $ in thousands (1) See page 30 for the Same Store vs. Non-Same Store properties Three months ended 12/31 Year ended 12/31 2017 2016 2017 2016 Office Same Store(1) Rental revenues $3,357 $3,513 $13,615 $14,323 Property expenses 1,350 1,288 5,435 5,273 NOI 2,
Slide 32: Reconciliation to Property Portfolio NOI
32Reconciliation to Property Portfolio NOI $ in thousands Three months ended 12/31/2017 Diversified Portfolio Office Retail Multifamily Total NOI - Cash Basis $0 $9,506 $2,284 $11,790 Net effect of straight-line rents - 22 33 55 Amortization of lease incentives and (above) below market rents - 176 (
Slide 33: Reconciliation to GAAP Net Income
33Reconciliation to GAAP Net Income $ in thousands Office Retail Multifamily Total Rental Properties General Contracting & Real Estate Services Total Segment revenues 4,779$ 16,021$ 6,854$ 27,654$ 32,643$ 60,297$ Segment expenses 1,823 4,155 3,106 9,084 32,002 41,086 Net operating income 2,956$ 11,8
Armada Hoffler Properties — Q4 2017 Earnings Presentation on 6ix