Slide 1: Exelon Building, Harbor Point Baltimore
1 Exelon Building, Harbor Point Baltimore
Slide 2: Table of Contents
TABLE OF CONTENTS 03 Forward-Looking Statements 04 Corporate Profile 05 Highlights 06 2022 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 Information
Slide 3: Forward-Looking Statements
FORWARD-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 10, 2022, which has been furnished as Exhibit 99.1 to our Form 8-K filed on February 10, 2022. The
Slide 4: Corporate Profile
CORPORATE PROFILE Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust with four decades of experience developing, building, acquiring and managing high-quality office, retail and multifamily properties located primarily in the Mid-Atlanti
Slide 5: Highlights
HIGHLIGHTS • Net income attributable to common stockholders and OP Unit holders of $0.4 million, or less than $0.01 per diluted share, for the quarter ended December 31, 2021 compared to $1.9 million, or $0.02 per diluted share, for the quarter ended December 31, 2020. Net income attributable to com
Slide 6: 2022 Outlook & Assumptions
2022 OUTLOOK & ASSUMPTIONS $ IN MILLIONS LOW HIGH TOTAL NOI $146.4 $147.4 CONSTRUCTION SEGMENT GROSS PROFIT $7.2 $8.3 G&A EXPENSES $15.8 $16.3 INTEREST INCOME $14.6 $15.0 INTEREST EXPENSE(1) $37.9 $38.6 NORMALIZED FFO PER DILUTED SHARE $1.11 $1.15 (1) Includes the interest expense on finance leases.
Slide 7: Summary Information
SUMMARY INFORMATION $ IN THOUSANDS, EXCEPT PER SHARE Three months ended OPERATIONAL METRICS 12/31/2021 9/30/2021 6/30/2021 3/31/2021 Net income attributable to common stockholders and OP unitholders $361 $4,861 $5,568 $3,122 Net income per diluted share attributable to common stockholders and OP uni
Slide 8: Net Asset Value Component Data
NET ASSET VALUE COMPONENT DATA $ IN THOUSANDS Stabilized Portfolio NOI (Cash)(1) Third-Party General Contracting and Real Estate Services Three months ended 12/31/2021 Trailing 12 Months Office(3) Retail Multifamily Total General Contracting Gross Profit $3,836 Stable Portfolio Portfolio NOI (2) $7,
Slide 9: Summary Balance Sheet
SUMMARY BALANCE SHEET $ IN THOUSANDS As of 12/31/2021 12/31/2020 Assets (Unaudited) Real estate investments: Income producing property $1,658,609 $1,680,943 Held for development 6,294 13,607 Construction in progress 72,535 63,367 Accumulated depreciation (285,814) (253,965) Net real estate investmen
Slide 10: Summary Income Statement
SUMMARY INCOME STATEMENT $ IN THOUSANDS, EXCEPT PER SHARE Three months ended Year ended 12/31/2021 12/31/2020 12/31/2021 12/31/2020 Revenues (Unaudited) Rental revenues $49,461 $44,648 $192,140 $166,488 General contracting and real estate services revenues 20,463 53,863 91,936 217,146 Total Revenues
Slide 11: FFO, Normalized FFO & Adjusted FFO
FFO, NORMALIZED FFO & ADJUSTED FFO(1) $ IN THOUSANDS, EXCEPT PER SHARE Three months ended (Unaudited) Year ended (Unaudited) 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2021 12/31/2020 Funds From Operations Net income attributable to AHH and OP unitholders $361 $4,861 $5,568 $3,122 $13,912 $29,84
Slide 12: Outstanding Debt
OUTSTANDING DEBT $ IN THOUSANDS Effective Rate Debt Maturities & Principal Payments as of Outstanding as of Debt Stated Rate 12/31/2021 Maturity Date 2022 2023 2024 2025 2026 Thereafter 12/31/2021 Secured Notes Payable - Core Debt Red Mill West 4.23% 4.23% Jun-2022 $10,386 $10,386 Marketplace at Hil
Slide 13: Debt Information
DEBT INFORMATION(1) $ IN THOUSANDS Debt Maturities Interest Rates $250,000 4.5% 3.8% 4.0% 4.0% 3.5% $200,000 3.5% 3.4% 3.5% 3.0% 3.0% 3.0% 2.7% 2.6% 3.0% 2.6% $150,000 2.5% 2.5% 2.4% Weighted Average 2.0% 2.0% $100,000 1.5% 1.5% 1.0% 1.0% $50,000 0.5% 0.5% $0 0.0% 0.0% 2022 2023 2024 2025 2026 There
Slide 14: Core Debt to Core EBITDA
CORE DEBT TO CORE EBITDA $ IN THOUSANDS SEE APPENDIX FOR CALCULATIONS AND RECONCILIATION Three months ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Net income attributable to common stockholders and OP unitholders $361 $4,861 $5,568 $3,122 $1,851 Adjusted EBITDA(1)(2)(4)(5) $33,470 $33,2
Slide 15: Capitalization & Financial Ratios
CAPITALIZATION & FINANCIAL RATIOS $ IN THOUSANDS AS OF DECEMBER 31, 2021 Debt 40% Debt % of Total Principal Balance Equity Unsecured credit facility 1% $5,000 60% 9% 13% Unsecured term loans 21% 205,000 Mortgages payable 78% 747,387 Total debt $957,387 31% Liquidation Value Preferred Equity Shares P
Slide 16: Property Portfolio
PROPERTY PORTFOLIO AS OF DECEMBER 31, 2021 Town Unencumbered ABR per Retail Properties- Stabilized Anchor Tenant(s) Location Center ABR Year Built SF(1) Occupancy(2) ABR(3) Leased SF(3) 249 Central Park Retail Cheesecake Factory, Brooks Brothers Virginia Beach, VA ✓ - 2004 92,400 94.0% $2,304,127 $2
Slide 17: Property Portfolio Cont.
PROPERTY PORTFOLIO CONT. AS OF DECEMBER 31, 2021 Office Properties- Stabilized Anchor Tenant(s) Location Town Center Unencumbered ABR Year Built SF(1) Occupancy(2) ABR(3) ABR per Leased SF(3) 4525 Main Street Clark Nexsen, Anthropologie, Mythics Virginia Beach, VA ✓ - 2014 235,088 100.0% $7,043,627
Slide 18: Development Pipeline
DEVELOPMENT PIPELINE $ IN THOUSANDS Schedule (1) Property % Leased or Construction Initial Stabilized Estimated Loan Cost to AHH Estimated(1) Anchor Tenants Projects Type LOI Start Occupancy Operation(2) Cost (1) Commitment Date Ownership % Under Development Chronicle Mill 244 units / (3) Multifamil
Slide 19: Development Pipeline Cont.
DEVELOPMENT PIPELINE CONT.(1) UNCONSOLIDATED JOINT-VENTURES - PREDEVELOPMENT: SUBJECT TO CHANGE $ IN THOUSANDS Estimated Construction Initial Stabilized AHH AHH Equity AHH Investment Total Property Type Size Start Occupancy Operation Project Cost Ownership % Requirement To Date Construction Fees T.
Slide 20: Mezzanine/Preferred Equity Investments
MEZZANINE/PREFERRED EQUITY INVESTMENTS $ IN THOUSANDS AS OF DECEMBER 31, 2021 Schedule (1) Property Estimated % Leased Initial Loan QTD Interest Type Size (1) or LOI Occupancy Loan Maturity Interest Rate Balance Income Outstanding Investments The Interlock (Expected $14M paydown 1Q22) Mixed-use 300,
Slide 21: Acquisitions & Dispositions
ACQUISITIONS & DISPOSITIONS $ IN THOUSANDS ACQUISITIONS Cash Cap Purchase Properties Location Square Feet/Units Purchase Price Anchor Tenants Rate Date 2022 482,000 / 103 units $273,000 6.1% (3) Exelon Building Baltimore, MD 482,000 / 103 units $273,000 6.1% 1Q22 Exelon Generation / Constellation 20
Slide 22: Construction Business Summary
CONSTRUCTION BUSINESS SUMMARY $ IN THOUSANDS AS OF DECEMBER 31, 2021 Total Contract Estimated Date Highlighted Projects Location Work in Place Backlog Value of Completion Adams Hill Apartments Greenville, SC $52,363 $2,301 $50,062 3Q 2023 Boulders Lakeview Apartments Richmond, VA 37,228 5,986 31,242
Slide 23: Same Store NOI by Segment
SAME STORE NOI BY SEGMENT $ IN THOUSANDS (RECONCILIATION TO GAAP LOCATED IN APPENDIX) Three months ended Year ended 12/31/2021 12/31/2020 $ Change % Change 12/31/2021 12/31/2020 $ Change % Change Summary NOI: Office $6,536 $6,548 ($12) -0.2% $26,452 $26,360 $92 0.3% Retail 13,473 13,181 292 2.2% 48,
Slide 24: Top 10 Tenants by ABR
TOP 10 TENANTS BY ABR(1) $ IN THOUSANDS AS OF DECEMBER 31, 2021 Office Portfolio(1) Number Lease Annualized Base % of Office Portfolio % of Total Portfolio Tenant of Leases Expiration Rent Annualized Base Rent Annualized Base Rent Morgan Stanley(2) 1 2027 $ 5,703 16.0% 3.6% Clark Nexsen 1 2029 2,746
Slide 25: Lease Summary
LEASE SUMMARY OFFICE Renewal Lease Summary GAAP Cash Number of Leases Net Rentable Net Rentable Contractual Prior Rent Releasing Contractual Prior Rent Releasing Wtd Average TI & LC Quarter Signed SF Signed Leases Expiring SF Expiring Rent per SF per SF Spread Rent per SF per SF Spread Lease Term (y
Slide 26: Office Lease Expirations
OFFICE LEASE EXPIRATIONS AS OF DECEMBER 31, 2021 % 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 - 41,090 3.2% $ - - $ - M-T-M 5
Slide 27: Retail Lease Expirations
RETAIL LEASE EXPIRATIONS AS OF DECEMBER 31, 2021 % 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 - 161,502 4.0% $ - - $ - M-T-M
Slide 28: Appendix: Definitions & Reconciliations
APPENDIX DEFINITIONS & RECONCILIATIONS 28 Town Center Virginia Beach, VA
Slide 29: Definitions
DEFINITIONS 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, an
Slide 30: Definitions
DEFINITIONS 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 expend
Slide 31: Definitions
DEFINITIONS 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 or
Slide 32: Same Store vs. Non-Same Store
SAME STORE VS. NON-SAME STORE Three Months Ended Year Ended Three Months Ended Year Ended 12/31/2021 to 2020 12/31/2021 to 2020 12/31/2021 to 2020 12/31/2021 to 2020 Same Non-Same Same Non-Same Same Non-Same Same Non-Same Store Store Store Store Store Store Store Store Retail Properties Retail Prope
Slide 33: Reconciliation of Adjusted EBITDA, Core EBITDA, and Core Debt
RECONCILIATION OF ADJUSTED EBITDA, CORE E B I T D A , A N D C O R E D E B T (1) $ IN THOUSANDS Three months ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Net income attributable to common stockholders and OP unitholders $361 $4,861 $5,568 $3,122 $1,851 Excluding: Depreciation and amortiz
Slide 34: Capital Expenditures
CAPITAL EXPENDITURES $ IN THOUSANDS AS OF DECEMBER 31, 2021 QUARTER TO DATE(1) Leasing Lease Tenant Land Building Furniture Fixtures Total Second Commissions Incentive Improvements Improvements Improvements & Equipment Generation Capex Retail $513 $47 $474 $257 $878 $- $2,169 Office 40 - 134 3 707 -
Slide 35: Reconciliation to Property Portfolio NOI
RECONCILIATION TO PROPERTY PORTFOLIO NOI $ IN THOUSANDS Three months ended 12/31 Year ended 12/31 2021 2020 2021 2020 Office Same Store(1) Rental revenues $10,213 $10,167 $40,965 $40,420 Property expenses 3,677 3,619 14,513 14,060 NOI 6,536 6,548 26,452 26,360 Non-Same Store NOI (2) 519 524 2,387 1,
Slide 36: Reconciliation to GAAP Net Income
RECONCILIATION TO GAAP NET INCOME $ IN THOUSANDS Three months ended 12/31/2021 Total Rental General Contracting & Office Retail Multifamily Properties Real Estate Services Total Segment revenues $ 12,039 $ 20,890 $ 16,532 $ 49,461 $ 20,463 $ 69,924 Segment expenses 4,984 5,501 6,706 17,191 19,750 36