Ah Realty Trust, Inc. · NYSE:AHRT
Ah Realty Trust — Armada Hoffler Properties — Q4 2024 Earnings Presentation
41 slides from Ah Realty Trust's earnings presentation, Feb 19, 2025
Slide 1: Supplemental Financial Package
SUPPLEMENTAL FINANCIAL PACKAGE
Slide 2: Board of Directors, Corporate Officers and Corporate Profile
2 BOARD OF DIRECTORS Louis S. Haddad, Executive Chairman of the Board Daniel A. Hoffler, Chairman Emeritus of the Board Eva S. Hardy, Lead Independent Director George F. Allen, Independent Director James A. Carroll, Independent Director James C. Cherry, Independent Director Dennis H. Gartman, Indepe
Slide 3: Highlights
3 HIGHLIGHTS $0.29 Fourth Quarter FFO Per Diluted Share $1.29 Full Year Normalized FFO Per Diluted Share 96.0% Wtd. Avg. Portfolio Occupancy as of December 31, 2024 12.3% Fourth Quarter Increase in Office Same Store NOI, GAAP 315K Square Feet of New and Renewed Commercial Space for the Fourth Quarte
Slide 4: 2025 Outlook & Assumptions
4 (1) See appendix for definitions. Ranges include or exclude certain items as per definition. (2) See definition in appendix. Refer to the Hedging Activity slide for the breakdown of derivative interest income for the fourth quarter and year ended 2024. 2025 OUTLOOK & ASSUMPTIONS OUTLOOK(1) LOW HIG
Slide 5: Summary Information
5(1) See appendix for definitions. (2) Excludes GAAP adjustments. (3) Total occupancy weighted by annualized rent. SUMMARY INFORMATION $ IN THOUSANDS, EXCEPT PER SHARE Three Months Ended (Unaudited) OPERATIONAL METRICS 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Net Income (Loss) Attributable to Common
Slide 6: Consolidated Statements of Income
6 Three Months Ended Year Ended 12/31/2024 12/31/2023 12/31/2024 12/31/2023 (Unaudited) (Unaudited) Revenues Rental Revenues $62,953 $59,842 $256,697 $238,924 General Contracting and Real Estate Services Revenues 75,010 126,911 433,177 413,131 Interest Income 4,637 4,280 18,596 15,103 Total Revenues
Slide 7: Summary Balance Sheet
7 SUMMARY BALANCE SHEET $ IN THOUSANDS As Of 12/31/2024 12/31/2023 (Unaudited) Assets Real Estate Investments: Income Producing Property $2,173,787 $2,093,032 Held for Development 5,683 11,978 Construction in Progress 17,515 102,277 Accumulated Depreciation (451,907) (393,169) Net Real Estate Invest
Slide 8: FFO, Normalized FFO, & AFFO
8 FFO, NORMALIZED FFO, & AFFO(1) $ IN THOUSANDS, EXCEPT PER SHARE Three Months Ended (Unaudited) Year Ended (Unaudited) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2024 12/31/2023 Funds From Operations Net Income (Loss) Attributable to AHH and OP Unitholders $26,140 ($10,416) $375 $14,804 $30,903
Slide 9: Net Asset Value Component Data
9 NET ASSET VALUE COMPONENT DATA (1) Excludes expenses associated with the Company’s in-house asset management division of $0.8M for the 3 months ended 12/31/2024. (2) Includes 100% of joint ventures. (3) Includes leases for spaces occupied by the Company, which are eliminated for GAAP purposes. (4)
Slide 10: Credit Profile
10 CREDIT PROFILE $ IN THOUSANDS Net Debt to Adjusted EBITDAre 5.6x 5.5x 4.9x 5.3x 5.4x 5.5x 6.2x 6.5x 6.6x 6.4x 5.9x 5.8x 7.4x 7.2x 6.5x 5.9x 6.6x 7.1x 7.1x 7.5x 7.4x 7.5x 7.2x 7.2x Stabilized Portfolio Debt / Stabilized Portfolio Adjusted EBITDAre Net Debt / Total Adjusted EBITDAre Q1 2 022 Q2 202
Slide 11: Leverage Metrics
11 LEVERAGE METRICS $ IN THOUSANDS SEE APPENDIX FOR DEFINITIONS, CALCULATIONS, AND RECONCILIATIONS (1) Includes income and debt related to development, real estate financing, construction, and other ancillary activities outside of our stabilized portfolio. (2) Reflects total debt less GAAP adjustmen
Slide 12: Debt Management
12 DEBT MANAGEMENT $ IN THOUSANDS AS OF DECEMBER 31, 2024 Total Debt Composition Weighted Average % of Debt Interest Rate Maturity Variable vs. Fixed-Rate Debt Variable-Rate Debt(1)(2) 6.3 % 6.4 % 2.3 Yrs Fixed-Rate Debt(3)(4) 93.7 % 4.3 % 3.4 Yrs Secured vs. Unsecured Debt Unsecured Debt(2) 55.9 %
Slide 13: Outstanding Debt
13 OUTSTANDING DEBT $ IN THOUSANDS (1) Excludes extension options. (2) Subject to a rate floor. (3) Does not reflect two 12-month extension options. (4) Includes debt subject to interest rate swap locks. Debt Maturities & Principal Payments Debt Stated Rate Effective Rate as of 12/31/2024 Maturity D
Slide 14: Hedging Activity
14 (1) Includes debt subject to interest rate swap locks. (2) Excludes GAAP adjustments. (3) The Company achieved a fixed or hedged rate of 100% subsequent to 12/31/24 by purchasing a swap with a notional of $150 million. (4) These swaps economically hedge the Company’s exposure to the senior constr
Slide 15: Capitalization & Financial Ratios
15 CAPITALIZATION & FINANCIAL RATIOS $ IN THOUSANDS, EXCEPT PER SHARE AS OF DECEMBER 31, 2024 (1) Represents the weighted average number of common shares and OP Units outstanding during the respective periods presented. (2) As of close of market on 12/31/24. (3) See appendix for definitions. (4) Exc
Slide 16: Portfolio Profile
16 PORTFOLIO PROFILE Multifamily Tradeout % of Portfolio ABR Expiring for Top 20 Tenants Retail Office Commercial Expirations 4.0% —% —% 4.0% 8.0% 10.0% 7.0% 13.0% 12.0% 6.0% 6.0% 2.0% 3.0% 25.0% Retail Office Ava ila ble M-T-M 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Thereafte r Weigh
Slide 17: Stabilized Portfolio Summary
17 STABILIZED PORTFOLIO SUMMARY AS OF DECEMBER 31, 2024 SEE APPENDIX FOR FULL LIST OF PROPERTIES (1) See appendix for definitions and portfolio detail. COMMERCIAL PORTFOLIO Retail Properties # of Properties Net Rentable SF(1) Average Age Occupancy(1) ABR(1) ABR per Occupied SF Town Center of Virgini
Slide 18: Same Store NOI by Segment
18 (1) Excludes expenses associated with the Company’s in-house asset management division of $1.0M and $1.3M for the three months ended 12/31/2024 & 12/31/2023, respectively, and $4.8M and $5.3M for the years ended 12/31/2024 & 12/31/2023, respectively. (2) Excludes $4.0M termination fee received fr
Slide 19: Top Tenants by ABR
19 TOP 20 TENANTS BY ABR(1) $ IN THOUSANDS AS OF DECEMBER 31, 2024 Commercial Portfolio Tenant Investment Grade Rating(2) Number of Leases Annualized Base Rent % of Total Annualized Base Rent Constellation Energy Generation ü 1 $15,010 7.4% Morgan Stanley ü 3 8,883 4.4% Harris Teeter/Kroger ü 6 3,78
Slide 20: Lease Summary
20 LEASE SUMMARY (1) Excludes leases from properties in development and redevelopment. RETAIL Renewals Quarter Number of Leases Signed Net Rentable SF Signed GAAP Releasing Spread Cash Releasing Spread Wtd Average Lease Term Remaining (yrs) TI & LC TI & LC per SF Q4 2024 17 82,479 11.1 % 2.9 % 5.9 $
Slide 21: Lease Expirations
21 LEASE EXPIRATIONS(1) AS OF DECEMBER 31, 2024 (1) Excludes leases from properties in development, redevelopment, and delivered, but not yet stabilized. (2) Represents leases that expired on 12/31/24. The spaces are available for lease as of 1/1/25. OFFICE Year Leases Expiring Square Footage Expiri
Slide 22: Portfolio Expansion
22 T. Rowe Price Global HQ Baltimore, MD PORTFOLIO EXPANSION $ IN THOUSANDS Schedule(1) Consolidated Development Projects Property Type Estimated Size(1) % Leased or LOI Construction Start Initial Occupancy Stabilized Operation(2) Estimated Cost(1) Loan Commitment Funded to Date AHH Ownership Anchor
Slide 23: Real Estate Financing
23 REAL ESTATE FINANCING $ IN THOUSANDS AS OF DECEMBER 31, 2024 The Interlock Atlanta, GA Solis Gainesville II Gainesville, GA (1) Each investment is in the form of preferred equity with economic terms and accounting consistent with a loan receivable. (2) Represents estimates that may change as the
Slide 24: General Contracting & Real Estate Services
24 GENERAL CONTRACTING & REAL ESTATE SERVICES $ IN THOUSANDS Third-Party Backlog as of Q4 2024 Beginning Backlog $193,122 New Contracts 5,817 Work Performed (75,155) Ending Backlog $123,784 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Trailing 4 Quarters Revenue $75,010 $114,353 $116,839 $126,975 $433,177 Expens
Slide 25: Net Income by Segment
25 NET INCOME BY SEGMENT $ IN THOUSANDS Three Months Ended December 31, 2024 Retail Real Estate Office Real Estate Multifamily Real Estate General Contracting and Real Estate Services Real Estate Financing Unallocated Total Revenues Rental revenues $25,530 $22,475 $14,948 $— $— $— $62,953 General co
Slide 26: Acquisitions & Dispositions
26 ACQUISITIONS & DISPOSITIONS $ IN THOUSANDS ACQUISITIONS Properties Location Square Feet/Units Purchase Price Cash Cap Rate Purchase Date Anchor Tenants 2023 311,000 $215,000 6.5 % The Interlock Atlanta, GA 311,100 (1) 215,000 6.5 % 2Q23 Georgia Tech, Puttshack 2022 606,181 / 103 units $299,450 6.
Slide 27: Appendix Definitions & Reconciliations
27Town Center of Virginia Beach Virginia Beach, VA APPENDIX DEFINITIONS & RECONCILIATIONS
Slide 28: Definitions: Annualized Base Rent and Adjusted Funds From Operations
28 ANNUALIZED BASE RENT: For the properties in our retail & office portfolios, we calculate annualized base rent (“ABR”) by multiplying (a) monthly base rent as of December 31, 2024 (defined as cash base rent, before contractual tenant concessions and abatements, and excluding tenant reimbursements
Slide 29: Definitions: Debt Service Coverage Ratio and FFO
29 DEBT SERVICE COVERAGE RATIO: We calculate Debt Service Coverage Ratio as the quarterly Total Adjusted EBITDAre divided by total quarterly interest expense, interest receipts of non-designated derivatives, and required principal repayment. DEFINITIONS FUNDS FROM OPERATIONS: We calculate Funds From
Slide 30: Definitions: Net Operating Income
30 NET OPERATING INCOME: We calculate Net Operating Income (“NOI”) as segment revenues less segment expenses. Segment revenues include rental revenues (base rent, expense reimbursements, termination fees, and other revenue) for our property segments, general contracting and real estate services reve
Slide 31: Definitions: Property Adjusted EBITDAre
31 PROPERTY ADJUSTED EBITDAre: We calculate Property Adjusted EBITDAre as EBITDAre coming solely from our operating properties. When referring to Property Adjusted EBITDAre, we also exclude certain items, including, but not limited to, non-recurring bad debt, non-recurring termination fees, amortiza
Slide 32: Definitions: Total Adjusted EBITDAre
32 DEFINITIONS TOTAL ADJUSTED EBITDAre: Total Adjusted EBITDAre is calculated as EBITDAre further adjusted for debt extinguishment losses, non-cash stock compensation, mark-to-market adjustments on interest rate derivatives, and other one-time adjustments including non-recurring bad debt and termina
Slide 33: Property Portfolio
33 PROPERTY PORTFOLIO AS OF DECEMBER 31, 2024 Retail Properties - Stabilized Location Ownership % Year Built/ Redeveloped Net Rentable SF(1) Occupancy(1) ABR(1) ABR per Occupied SF(1) Anchor Tenant(s) Town Center of Virginia Beach 249 Central Park Retail Virginia Beach, VA 100% 2004 35,161 100.0 % $
Slide 34: Property Portfolio Cont.
34 PROPERTY PORTFOLIO CONT. AS OF DECEMBER 31, 2024 Retail Properties - Stabilized Location Ownership % Year Built/ Redeveloped Net Rentable SF(1) Occupancy(1) ABR(1) ABR per Occupied SF(1) Anchor Tenant(s) Mid-Atlantic Dimmock Square Colonial Heights, VA 100% 1998 106,166 100.0 % $1,932,887 $18.21
Slide 35: Property Portfolio Cont. Multifamily
35 PROPERTY PORTFOLIO CONT. AS OF DECEMBER 31, 2024 Multifamily Properties - Stabilized Location Ownership % Year Built / Redeveloped Units Occupancy(1) AQR (1) Monthly AQR per Occupied Unit Town Center of Virginia Beach Encore Apartments Virginia Beach, VA 100% 2014 286 93.7 % $5,862,228 $1,823 Pre
Slide 36: Reconciliation of Debt & EBITDAre
36 $ IN THOUSANDS RECONCILIATION OF DEBT & EBITDAre (1) Excludes GAAP adjustments. Three Months Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Property Net Operating Income $41,574 $45,762 $42,292 $41,351 Property Miscellaneous Expense, Net (146) (35) (64) (43) Non-Recurring Bad Debt Adjustment 488
Slide 37: Capital Expenditures
37 $ IN THOUSANDS CAPITAL EXPENDITURES (1) Excludes activity related to held for sale, acquired, and/or disposed properties. (2) Represents recurring capital expenditures. Leasing Commissions Lease Incentive Tenant Improvements Land Improvements(2) Building Improvements(2) Fixtures & Equipment(2) To
Slide 38: Reconciliation to Property Portfolio NOI
38 RECONCILIATION TO PROPERTY PORTFOLIO NOI $ IN THOUSANDS (1) Includes expenses associated with the Company’s in-house asset management division. Three Months Ended 12/31 Year Ended 12/31 2024 2023 2024 2023 Retail Same Store Rental Revenues $23,403 $23,277 $84,716 $84,248 Property Expenses 6,025 6
Slide 39: Reconciliation to GAAP Net Income
39 RECONCILIATION TO GAAP NET INCOME $ IN THOUSANDS (1) Segment net operating income for the retail, office, and multifamily segments is calculated as rental revenues less rental expenses and rental taxes. (2) Segment gross profit for the general contracting & real estate services segment is calcula
Slide 40: EBITDAre Reconciliation
40 Three Months Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Net Income (Loss) Attributable to Common Stockholders and OP Unitholders $26,140 ($10,416) $375 $14,804 Excluding: Depreciation and Amortization 24,870 23,289 20,789 20,435 Gain on Real Estate Dispositions (21,305) — — — Impairment of Re
Slide 41: This Supplemental Financial Package should be read in conjunction with the unaudited condensed consolidated
41 This Supplemental Financial Package should be read in conjunction with the unaudited condensed consolidated financial statements appearing in the Company’s press release dated February 19, 2025, which has been furnished as Exhibit 99.1 to the Company’s Form 8-K furnished with the Securities and E
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