Ah Realty Trust, Inc. · NYSE:AHRT
Ah Realty Trust — Armada Hoffler Properties — Q4 2020 Earnings Presentation
36 slides from Ah Realty Trust's earnings presentation, Feb 11, 2021
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Slide 2: Table of Contents
2TABLE OF CONTENTS Forward-Looking Statements Corporate Profile Highlights 2021 Outlook & Assumptions Summary Information Net Asset Value Component Data Summary Balance Sheet Summary Income Statement FFO, Normalized FFO & Adjusted FFO Outstanding Debt Debt Information Core Debt to Core EBITDA Capita
Slide 3: Forward-Looking Statements
3 This Supplemental Financial Package should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated February 11, 2021, which has been furnished as Exhibit 99.1 to our Form 8-K filed on February 11, 2021. The Company makes statements
Slide 4: Corporate Profile: Board of Directors and Officers
4 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 Eva S. Hardy, Independent Director A. Russell Kirk, Director Dor
Slide 5: Highlights
5HIGHLIGHTS • Net income attributable to common stockholders and OP Unit holders of $1.9 million, or $0.02 per diluted share, for the quarter ended December 31, 2020 compared to $7.2 million, or $0.09 per diluted share, for the quarter ended December 31, 2019. Net income attributable to common stock
Slide 6: 2021 Outlook & Assumptions
62021 OUTLOOK & ASSUMPTIONS G U I D A N C E A S S U M P T I O N S OUTLOOK LOW HIGH Total NOI $116.3M $117.3M Construction Segment Gross Profit $4.0M $5.3M G&A Expenses $14.3M $14.8M Mezzanine Interest Income $17.7M $18.1M Interest Expense $31.0M $31.7M Normalized FFO per diluted share $0.98 $1.02 •
Slide 7: Summary Information
7SUMMARY INFORMATION $ IN THOUSANDS, EXCEPT PER SHARE DATE (1) See definition on page 31. (2) Includes common shares and OP units. (3) Excludes GAAP adjustments. (4) Office and retail occupancy based on leased square feet as a % of respective total. (5) Multifamily and student housing occupancy base
Slide 8: Net Asset Value Component Data
8NET ASSET VALUE COMPONENT DATA (1) NOI from non-stabilized portfolio and development pipeline excluded from stabilized portfolio. (2) Excludes expenses associated with the Company’s in-house asset management division of $0.6M for the 3 months ended 12/31/2020. (3) Includes leases for spaces occupie
Slide 9: Summary Balance Sheet
9SUMMARY BALANCE SHEET $ IN THOUSANDS 12/31/2020 12/31/2019 Assets (Unaudited) Real estate investments: Income producing property $1,680,943 $1,460,723 Held for development 13,607 5,000 Construction in progress 63,367 140,601 Accumulated depreciation (253,965) (224,738) Net real estate investments $
Slide 10: Summary Income Statement
10SUMMARY INCOME STATEMENT IN THOUSANDS, EXCEPT PER SHARE DATA Three months ended Year ended 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Revenues (Unaudited) Rental revenues $44,648 $41,832 $166,488 $151,339 General contracting and real estate services revenues 53,863 39,741 217,146 105,859 Total Re
Slide 11: FFO, Normalized FFO & AFFO
11FFO, NORMALIZED FFO & AFFO (1) IN THOUSANDS, EXCEPT PER SHARE DATA (1) See definitions on pages 30-31. (2) Adjusted for the depreciation attributable to noncontrolling interests in consolidated investments. (3) Excludes development, redevelopment, and first-generation space. (4) Includes non-cash
Slide 12: Outstanding Debt
12OUTSTANDING DEBT $ IN THOUSANDS (1) Includes debt subject to interest rate swap locks. (2) Refinanced subsequent to quarter end, new rate and maturity reflected. (3) Subject to a LIBOR rate floor. Debt Stated Rate Effective Rate as of 12/31/2020 Maturity Date 2021 2022 2023 2024 2025 Thereafter Ou
Slide 13: Debt Information
13 2.3% 2.5% 2.8% 2.4% 3.2% 3.4% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2021 2022 2023 2024 2025 Thereafter⁽¹⁾ Debt Maturities(1) Debt Maturing Weighted Average Interest Rate DEBT INFORMATION (1) Includes refinances that occurred subsequent to 12/31/20.
Slide 14: Core Debt to Core EBITDA
14CORE DEBT TO CORE EBITDA $ IN THOUSANDS SEE PAGE 34 FOR CALCULATION AND RECONCILIATION. (1) See reconciliation on page 34. (2) Excludes non-recurring items. (3) Excludes GAAP Adjustments. (4) See Page 31 for definition. Three months ended 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 Net inc
Slide 15: Capitalization & Financial Ratios
15 Unsecured Credit Facility Unsecured Term Loans Mortgages Payable Preferred Equity Common Units CAPITALIZATION & FINANCIAL RATIOS $ IN THOUSANDS AS OF DECEMBER 31, 2020 (1) Reflects quarterly Adjusted EBITDA divided by total quarterly interest expense and required principal repayment (2) Reflects
Slide 16: Property Portfolio
16PROPERT Y PORTFOLIO AS OF DECEMBER 31, 2020 Properties with Tenants Subject to Ground Lease Number of Ground Leases Square Footage Leased Pursuant to Ground Leases ABR Broad Creek Shopping Center 6 23,825 $660,200 Columbus Village 1 3,403 200,000 Hanbury Village 2 55,586 1,082,118 Market at Mill C
Slide 17: Property Portfolio Cont.
17PROPERT Y PORTFOLIO CONT. AS OF DECEMBER 31, 2020 (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 lease
Slide 18: Development & Redevelopment Pipeline
18DEVELOPMENT & REDEVELOPMENT P IPEL INE $ IN THOUSANDS (1) Represents estimates that may change as the development and redevelopment process proceeds. (2) First fully-stabilized quarter. See same store definition on page 33. (3) Reflects AHH portion of Joint Venture cost. (4) Majority interest in j
Slide 19: Mezzanine Investments
19MEZZANINE INVESTMENTS $ IN THOUSANDS (1) Represents estimates that may change as the development process proceeds. (2) Intend to acquire during the first quarter of 2021. (3) Stopped GAAP recognition of mezzanine income as of 4/1/20. (4) 100% preferred equity, with economic terms and accounting co
Slide 20: Acquisitions & Dispositions
20ACQUISITIONS & DISPOSITIONS $ IN THOUSANDS (1) Contractual purchase price. (2) Value of OP Units/common stock at issuance. (3) Anchor tenant vacated 12/31/16, which would represent a 2.5% cash capitalization rate. (4) Includes JV interest in the property. ACQUISITIONS Properties Location Square Fe
Slide 21: Construction Business Summary
21CONSTRUCTION BUSINESS SUMMARY $ IN THOUSANDS Gross Profit Summary Q4 2020 Trailing 12 Months Revenue $53,863 $217,146 Expense (52,071) (209,472) Gross Profit $1,792 $7,674 (Unaudited) 27th Street Virginia Beach, VA Highlighted Projects Location Total Contract Value Work in Place as of 12/31/2020 B
Slide 22: Same Store NOI by Segment
22SAME STORE NOI BY SEGMENT $ IN THOUSANDS (RECONCILIATION TO GAAP LOCATED IN APPENDIX ON PG. 36) (1) See page 33 for Same Store vs. Non – Same Store Properties. (2) Excludes expenses associated with the Company’s in-house asset management division of $0.6M and $0.5M for the 3 months ended 12/31/202
Slide 23: Top Tenants by ABR
23TOP 10 TENANTS BY ABR (1) $ IN THOUSANDS AS OF DECEMBER 31, 2020 (1) Includes leases from the development and redevelopment properties that have been delivered, but not yet stabilized. (2) Excludes 9.3K SF Morgan Stanley lease at Armada Hoffler Tower expiring in 2023. Inclusive of both leases, Mor
Slide 24: Lease Summary
24LEASE SUMMARY O F F I C E R E T A I L 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 per SF Releasing Spread Weighted Avera
Slide 25: Office Lease Expirations
25OFFICE LEASE EXPIRATIONS AS OF DECEMBER 31, 2020 Square Feet Under Lease % of Portfolio ABR 2,500 or less 3% 2,501-10,000 14% 10,001-20,000 16% 20,001-40,000 21% 40,001-100,000 30% Greater than 100,000 16% Office Portfolio Total 100% (1) Excludes leases from properties in development and delivered
Slide 26: Retail Lease Expirations
26RETAIL LEASE EXPIRATIONS AS OF DECEMBER 31, 2020 (1) Excludes leases from properties in development and delivered, but not yet stabilized. (2) Leases expired on 12/31/20 (3) 34k square feet of expirations at Wendover Village are released, but new expiration is not reflected here. 0.0% 2.0% 4.0% 6.
Slide 27: Overall Collections
27OVERALL COLLECTIONS (1) 4 Q 2 0 C O L L E C T I O N S ( 2 ) 4 Q 2 0 T O P 2 0 C O L L E C T I O N S ( 2 ) (1) Data reported relates to rent charges and collections through 1/31/21 and does not correspond to the reporting segment classification of the properties as a whole. (2) As a percentage of 4
Slide 28: COVID-19 Effect
28COVID-19 EFFECT AS OF JANUARY 31, 2021 $ in Thousands Repayment Period 2021 2022 $1,780 $1,500 $280 Deferred Rent Outstanding⁽¹⁾ 93% 76% 7% 24% 2020 YTD Jan 2021 T o t a l D e f e r r a l s ( 1 )T o t a l D e f e r r e d R e n t C o l l e c t i o n s Repayment OutstandingDeferred Rent Recovered de
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
30DEFINITIONS FUNDS FROM OPERATIONS: We calculate Funds From Operations (“FFO”) in accordance with the standards established by the National Association of Real Estate Investment Trusts (“Nareit”). Nareit defines FFO as net income (loss) (calculated in accordance with accounting principles generally
Slide 31: Definitions: Adjusted Funds From Operations
31DEFINITIONS 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 expe
Slide 32: Definitions: Same Store Portfolio
32DEFINITIONS 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
33S A M E S TO R E V S . N O N - S A M E S TO R E P R O P E R T I E S 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 South Retail X X Apex Entertainment X X South Squa
Slide 34: Reconciliation of Adjusted EBITDA, Core EBITDA, and Core Debt
34 R E C O N C I L I AT I O N O F A D J U S T E D E B I T D A , C O R E E B I T D A , A N D C O R E D E B T ( 1 ) $ IN THOUSANDS (1) See definitions on page 31. (2) Adjusted for the depreciation and interest expense attributable to noncontrolling interests in consolidated investments. (3) Excludes n
Slide 35: Reconciliation to Property Portfolio NOI
35R E CONCIL IAT ION TO PROPE RT Y PORTFOL IO NOI $ IN THOUSANDS (1) See page 33 for the Same Store vs. Non-Same Store properties. (2) Includes expenses associated with the Company’s in-house asset management division. Three months ended 12/31 Year ended 12/31 2020 2019 2020 2019 Office Same Store (
Slide 36: Reconciliation to GAAP Net Income
36RECONCILIATION TO GAAP NET INCOME $ IN THOUSANDS Office Retail Multifamily Total Rental Properties General Contracting & Real Estate Services Total Segment revenues 11,352$ 18,238$ 15,058$ 44,648$ 53,863$ 98,511$ Segment expenses 4,279 4,738 6,846 15,863 52,071 67,934 Net operating income 7,073$ 1
Armada Hoffler Properties — Q4 2020 Earnings Presentation on 6ix