Ah Realty Trust, Inc. · NYSE:AHRT
Ah Realty Trust — American Hotel Realty Trust — FY2019 Earnings Presentation
17 slides from Ah Realty Trust's earnings presentation, Feb 6, 2020
Slide 1: CLICK TO EDIT MASTER TITLE STYLE
CLICK TO EDIT MASTER TITLE STYLE 1
Slide 2: Table of Contents
TABLE OF CONTENTS 2 PAGE SECTION 03 Forward Looking Statements 04 2020 Outlook & Assumptions 05 2019/2020 Asset Recycling 06 Evolving Portfolio NOI Composition 07 NOI Contribution by Location 08 Projects Under Development and Redevelopment 09 Mezzanine Investment Program 10 General Contracting and R
Slide 3: Forward Looking Statements
FORWARD LOOKING STATEMENTS 3 This presentation should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated February 6, 2020, which has been furnished as Exhibit 99.1 to our Form 8-K filed on February 6, 2020. The Company makes sta
Slide 4: 2020 Outlook & Assumptions
2020 OUTLOOK & ASSUMPTIONS 4 LOW HIGH Total NOI $117.5M $118.5M Construction Segment Gross Profit $7.3M $8.0M G&A Expenses $12.9M $13.5M Mezzanine Interest Income $21.7M $22.1M Interest Expense $35.2M $36.2M Normalized FFO Per Diluted Share $1.16 $1.20 GUIDANCE ASSUMPTIONS • Asset recycling program
Slide 5: 2019/2020 Asset Recycling
2019/2020 ASSET RECYCLING 5 CASH CAP ESTIMATED PROPERTY ANCHOR TENANT LOCATION ANNUAL CASH NOI RATE PRICE DISPOSITIONS Lightfoot Marketplace(1) Harris Teeter Williamsburg, VA 5.8% $30M -$1.7M Greentree Marketplace Various small shops Chesapeake, VA 7.5% $4M -$0.3M 7 Shopping Centers (Signed LOI) Var
Slide 6: Evolving Portfolio GAAP NOI Composition
EVOLVING PORTFOLIO GAAP NOI COMPOSITION 6 $ in millions PORTFOLIO COMPOSITION(1) 2019 2020 GUIDANCE MIDPOINT FULLY STABILIZED (2) RETAIL $50 $47 $48 ENTERTAINMENT & MIXED-USE RETAIL $9 $14 $27 MULTIFAMILY $24 $31 $37 OFFICE $23 $30 $41 TOTAL $106 $121 $153 Fully stabilized portfolio expected to brin
Slide 7: NOI Contribution by Location
NOI CONTRIBUTION BY LOCATION 7 5% 8% 42% 6% OTHER NORTH CAROLINA 28% TOWN CENTER OF GEORGIA TOWN CENTER OF VIRGINIA BEACH VIRGINIA BEACH 14% MARYLAND PROJECTED PORTFOLIO 2013 FULLY (24 properties) STABILIZED(2) (61 properties) 6% SOUTH CAROLINA 15% 26% 50% NORTH CAROLINA OTHER VIRGINIA(1) OTHER VIRG
Slide 8: Projects Under Development and Redevelopment
PROJECTS UNDER DEVELOPMENT AND REDEVELOPMENT 8 INITIAL STABILIZED DEVELOPMENT PROJECTS(1) PROPERTY TYPE SIZE % Leased or LOI (2) ESTIMATED COST(2) OCCUPANCY OPERATION(2) (3) Chronicle Mill Multifamily 239 units / 10,000 sf - 1Q22 1Q23 $45M Belmont, NC Premier Retail Mixed-Use 39,000 sf 76% 3Q18 1Q21
Slide 9: Mezzanine Investment Program
MEZZANINE INVESTMENT PROGRAM 9 P RO JE CTE D PR OJECTED TOTAL PR OJECTED TOTAL P RINCIP AL P RO JE CT P RO D UCT LO CATIO N GR OSS I NTER EST CONSTR U CTI ON PR OJECTED AHH M E ZZANINE (1)(2) (1) (1) I NCOME F EES I NCOME FINANCING ( 1 ) Investm ents w ith Purchase Option Delray Beach Plaza Retail D
Slide 10: General Contracting and Real Estate Services
GENERAL CONTRACTING AND REAL ESTATE SERVICES 10 $ in millions 2019 2020 Guidance Midpoint Third-Party Construction and Development $4.3 $7.6 Third-Party Construction Backlog As of 12/31/19 $243 3rd Party Gross Profit⁽¹⁾ Volume $8 $300 Millions Millions $7 $250 $6 $200 $5 $4 $150 Internal Volume⁽¹⁾ 3
Slide 11: Normalized FFO Components
NORMALIZED FFO COMPONENTS 11 2019 2020 Guidance Midpoint Property FFO(1) $80.2M $87.7M Construction Gross Profit $4.3M $7.6M Purchase Option Sale/Exit Fee $5.6M $5.0M Mezzanine Interest Income (Net of Interest Expense) $12.7M $12.5M (2) NFFO/Share $1.17 $1.18 CONTRIBUTION TO NFFO/SHARE BY COMPONENT
Slide 12: Balance Sheet Targets
BALANCE SHEET TARGETS 12 10.0x 8.0x 7.8x 8.0x 7.5x 7.7x 7.4x 7.3x 7.3x 7.0x 7.1x 7.0x 6.8x 6.6x 6.8x 6.6x 6.8x 6.4x 6.1x 6.1x 6.0x 4.0x 2.0x 0.0x 4Q17 1Q18⁽¹⁾ 2Q18⁽¹⁾ 3Q18⁽¹⁾ 4Q18 1Q19 2Q19 3Q19 4Q19 Debt/Annualized EBITDA Core Debt/Annualized Core EBITDA 2020 Capital Sources Timing $ At The Market
Slide 13: Debt Maturities
DEBT MATURITIES 13 $ in millions $400 $300 $200 Premier Apartments Virginia Beach, VA $100 CONSTRUCTION $0 SECURED 2020 2021 2022 2023 2024 2025 and thereafter UNSECURED Weighted Average Maturity ~5.8 Years
Slide 14: Core Operating Portfolio Occupancy
CORE OPERATING PORTFOLIO OCCUPANCY(1) 14 100% 90% Greenside Charlotte, NC 80% 2 0 2 0 E 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 7 2 0 1 6 2 0 1 9 2 0 1 8 70% 60% 50% (1) 2013 through 2019 occupancy as of year end and 2020 expected 12/31
Slide 15: 2020 Mezzanine Investment Guidance
2020 MEZZANINE INVESTMENT GUIDANCE 15 TOTAL 2020 PROJECTED PROJECT INTEREST RATE PROJECTED PAYOFF MIDPOINT AHH INCOME Investments with Purchase Option Delray Plaza (Whole Foods) 15% 2Q 2020 $0.5M Nexton Square 10% 2Q 2020 $0.4M Short-Term Investments (1) Annapolis Junction 10% 3Q 2020 $5.2M Solis In
Slide 16: 2020 Outlook & Assumptions
2020 OUTLOOK & ASSUMPTIONS 16 LOW HIGH Total NOI $117.5M $118.5M Construction Segment Gross Profit $7.3M $8.0M G&A Expenses $12.9M $13.5M Mezzanine Interest Income $21.7M $22.1M Interest Expense $35.2M $36.2M Normalized FFO Per Diluted Share $1.16 $1.20 GUIDANCE ASSUMPTIONS • Asset recycling program
Slide 17: Proven Performance Since IPO
PROVEN PERFORMANCE SINCE IPO 17 NAV per Share Normalized FFO Common Stock Equity Market Cap Consensus(1) per Share Dividends Per Share 59% Growth 43% Growth 31% Growth $18.28 $0.84 $1.17 $1.5B $0.82 $0.64 $11.50 $0.3B 2013 2019 2014 2019 2013 2019 2Q13 Current IPO IPO (1) Source: Average of most rec
American Hotel Realty Trust — FY2019 Earnings Presentation on 6ix