Slide 1: 4Q19 Supplemental Financial Package
4Q19 SUPPLEMENTAL FINANCIAL PACKAGE 4 ARMADA HOFFLER U fecennrin
Slide 2: Table of Contents
Table of Contents 2 Forward-Looking Statements 03 Corporate Profile 04 Highlights 05 2020 Outlook & Assumptions 06 Summary Information 07 Net Asset Value Component Data 08 Summary Balance Sheet 09 Summary Income Statement 10 FFO, Normalized FFO & Adjusted FFO 11 Outstanding Debt 12 Debt Information
Slide 3: Forward-Looking Statements
3 FORWARD-LOOKING STATEMENTS Armada Hoffler This Supplemental Financial Package 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 Februa
Slide 4: Corporate Profile
Corporate Profile 4 Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust (“REIT”) with four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties lo
Slide 5: Highlights
Highlights 5 • Net income attributable to common stockholders and OP Unit holders of $7.2 million, or $0.09 per diluted share, for the quarter ended December 31, 2019 compared to $4.9 million, or $0.07 per diluted share, for the quarter ended December 31, 2018. Net income attributable to common stoc
Slide 6: 2020 Outlook & Assumptions
2020 Outlook & Assumptions 6 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 7: Summary Information
Summary Information 7 $ in thousands, except per share data Three months ended 12/31/2019 9/30/2019 6/30/2019 3/31/2019 12/31/2018 OPERATIONAL METRICS Net income attributable to AHH and OP Unitholders $7,215 $9,869 $5,992 $6,514 $4,895 Net income attributable to AHH and OP Unitholders per diluted sh
Slide 8: Net Asset Value Component Data
Net Asset Value Component Data 8 In thousands Stabilized Portfolio NOI (Cash)(1) Third-Party General Contracting and Real Estate Services Three months ended Annualized Trailing 12 Months 12/31/2019 12/31/2019 General Contracting Gross Profit $4,321 Stabilized Virginia Beach (VB) Town Center (1) Offi
Slide 9: Summary Balance Sheet
Summary Balance Sheet 9 $ in thousands As of 12/31/2019 12/31/2018 Assets (Unaudited) Real estate investments: Income producing property $1,460,723 $1,037,917 Held for development 5,000 2,994 Construction in progress 140,601 135,675 Accumulated depreciation (224,738) (188,775) Net real estate invest
Slide 10: Summary Income Statement
Summary Income Statement 10 In thousands, except per share data Three months ended Year ended 12/31/2019 12/31/2018 12/31/2019 12/31/2018 Revenues (Unaudited) Rental revenues $41,832 $30,731 $151,339 $116,958 General contracting and real estate services revenues 39,741 12,705 105,859 76,359 Total Re
Slide 11: FFO, Normalized FFO & AFFO
FFO, Normalized FFO & AFFO(1) 11 $ in thousands, except per share data Three months ended (Unaudited) Year Ended (Unaudited) 12/31/2019 9/30/2019 6/30/2019 3/31/2019 2019 2018 Funds From Operations Net income attributable to AHH and OP Unitholders $7,215 $9,869 $5,992 $6,514 $29,590 $23,492 Earnings
Slide 12: Outstanding Debt
Outstanding Debt 12 $ in thousands Effective Rate as Outstanding as of Debt Stated Rate of 12/31/2019 Maturity Date 2020 2021 2022 2023 2024 Thereafter 12/31/2019 Secured Notes Payable - Core Debt Hoffler Place L+3.24% 5.00% Jan-2021 - $29,059 $29,059 Southgate Square L+1.60% 3.36% Apr-2021 880 19,6
Slide 13: Debt Information
Debt Information 13 $ in thousands Debt Maturities $350,000 5.0% $300,000 4.0% 4.0% 4.0% 4.0% $250,000 3.4% 3.4% 3.0% $200,000 $150,000 2.0% $100,000 1.0% $50,000 $0 0.0% 2020 2021 2022 2023 2024 Thereafter Fixed-Rate Debt Variable-Rate Debt Weighted Average Interest Rate Total Debt Composition Inte
Slide 14: Core Debt to Core EBITDA
Core Debt to Core EBITDA(1) 14 $ in thousands Three months ended 12/31/2019 9/30/2019 6/30/2019 3/31/2019 12/31/2018 Net income available to be allocated to AHH and OP Unitholders $7,215 $9,869 $5,992 $6,514 $4,895 Excluding: Depreciation and amortization (2) 15,285 15,057 13,145 10,129 11,525 Amort
Slide 15: Capitalization & Financial Ratios
Capitalization & Financial Ratios 15 $ in thousands, except per share data As of December 31, 2019 Debt % of Total Principal Balance Unsecured credit facility 11% $110,000 Unsecured term loans 21% 205,000 Mortgages payable 68% 645,819 4% Total debt $960,819 16% 8% Debt 39% Liquidation Value Preferre
Slide 16: Property Portfolio
Property Portfolio 16 As of December 31, 2019 Net Rentable Square Feet (RSF)(1) Development/ Development/ Town Unencumbered Core Redevelopment Core Redevelopment ABR per Property Anchor Tenant(s) Location Center ABR Year Built Properties Properties Total Occupancy(2) Leased(2) ABR(3) Leased SF(3) Re
Slide 17: Property Portfolio Cont.
Property Portfolio Cont. 17 As of December 31, 2019 Net Rentable Square Feet (RSF)(1) Town Unencumbered Core Development Core Development ABR per Leased Office Properties Anchor Tenant Location Center ABR Year Built Properties Properties Total Occupancy(2) Leased(2) ABR(3) SF(3) 4525 Main Street Cla
Slide 18: Development and Redevelopment Pipeline
18 Development and Redevelopment 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 239 u
Slide 19: Mezzanine Investments
Mezzanine Investments 19 $ in thousands Schedule (1) Principal Property % Leased Initial Mezzanine Mezzanine Mezzanine Type Estimated(1) or LOI Occupancy Loan Maturity Interest Rate Financing(2) Interest QTD Interest YTD Investments with Discounted Purchase Options Delray Plaza (Whole Foods) Retail
Slide 20: Acquisitions & Dispositions
Acquisitions & Dispositions 20 $ in thousands ACQUISITIONS Reinvested $ Value of Cash Cap Properties Location Square Feet Purchase Price (1) 1031 Proceeds OP Units/Stock(2) Rate Purchase Date Anchor Tenants Thames Street Wharf Baltimore, MD 263,426 $101,000 $ - $ - 7.1% 2Q19 Morgan Stanley, JHU Medi
Slide 21: Construction Business Summary
Construction Business Summary 21 $ in thousands Total Contract Work in Place as Estimated Date Highlighted Projects Location Value of 12/31/2019 Backlog of Completion The Interlock Atlanta, GA $89,286 $48,152 $41,134 3Q 2020 Solis Apartments at Interlock Atlanta, GA 63,810 14,803 49,007 1Q 2021 Boul
Slide 22: Same Store NOI by Segment
Same Store NOI by Segment 22 $ in thousands (Reconciliation to GAAP located in appendix on pg. 35) Three months ended Year ended 12/31/2019 12/31/2018 $ Change % Change 12/31/2019 12/31/2018 $ Change % Change Office (1) (Unaudited) (Unaudited) Revenue $5,094 $5,165 ($71) -1.4% 21,239 $20,701 $538 2.
Slide 23: Top 10 Tenants by Annualized Base Rent
Top 10 Tenants by ABR(1) 23 $ in thousands As of December 31, 2019 Office Portfolio Number Lease Annualized Base % of Office Portfolio % of Total Portfolio Tenant of Leases Expiration Rent Annualized Base Rent Annualized Base Rent Morgan Stanley 2 2023 ; 2027 $ 5,761 16.6% 4.1% Clark Nexsen 1 2029 2
Slide 24: Office Lease Summary
Office Lease Summary 24 Renewal Lease Summary GAAP Cash Number of Weighted Leases Net Rentable SF Leases Net Rentable Contractual Prior Rent Releasing Contractual Prior Rent Releasing Average Lease TI & LC Quarter Signed Signed Expiring SF Expiring Rent per SF per SF Spread Rent per SF per SF Spread
Slide 25: Office Lease Expirations
Office Lease Expirations 25 As of December 31, 2019 Square Footage % Portfolio % of Portfolio Annualized Base Number of Leases of Leases Net Rentable Annualized Base Annualized Rent per Leased Year Expiring Expiring Square Feet Rent Base Rent Square Foot Available - 44,285 3.4% $ - - - M-T-M 2 - - 2
Slide 26: Retail Lease Summary
Retail Lease Summary 26 Renewal Lease Summary GAAP Cash Number of Net Weighted Leases Rentable SF Net Rentable SF Contractual Prior Rent per Releasing Contractual Prior Rent Releasing Average Lease TI & LC Quarter Signed Signed Leases Expiring Expiring Rent per SF SF Spread Rent per SF per SF Spread
Slide 27: Retail Lease Expirations
Retail Lease Expirations 27 As of December 31, 2019 Square Footage % Portfolio % of Portfolio Annualized Base Number of Leases of Leases Net Rentable Annualized Base Annualized Rent per Leased Year Expiring Expiring(1) Square Feet Rent (1) Base Rent Square Foot Available - 144,938 3.4% $ - - $ - M-T
Slide 28: Appendix: Definitions & Reconciliations
28 Appendix Definitions & Reconciliations
Slide 29: Definitions
Definitions 29 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,
Slide 30: Definitions
Definitions 30 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 exp
Slide 31: Definitions
Definitions 31 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 32: Same Store vs. Non-Same Store Properties
32 Same Store vs. Non-Same Store Properties Three Months Ended Year Ended Three Months Ended Year Ended 12/31/2019 to 2018 12/31/2019 to 2018 12/31/2019 to 2018 12/31/2019 to 2018 Same Non-Same Same Non-Same Same Non-Same Same Non-Same Store Store Store Store Store Store Store Store Retail Propertie
Slide 33: Reconciliation to Property Portfolio NOI
33 Reconciliation to Property Portfolio NOI $ in thousands Three months ended 12/31 Year ended 12/31 2019 2018 2019 2018 Office Same Store(1) Rental revenues $5,094 $5,165 $21,239 $20,701 Property expenses 1,937 1,836 7,735 7,507 NOI 3,157 3,329 13,504 13,194 Non-Same Store NOI (2) 3,115 (102) 7,572
Slide 34: Reconciliation to Property Portfolio NOI
34 Reconciliation to Property Portfolio NOI $ in thousands Three months ended 12/31/2019 Diversified Portfolio Office Retail Multifamily Total NOI - Cash Basis $2,824 $12,681 $4,413 $19,918 GAAP Adjustments 450 605 30 1,085 Elimination of intercompany rent (73) - - (73) NOI $3,201 $13,286 $4,443 $20
Slide 35: Reconciliation to GAAP Net Income
35 Reconciliation to GAAP Net Income $ in thousands Three months ended 12/31/2019 Total Rental General Contracting & Office Retail Multifamily Properties Real Estate Services Total Segment revenues $ 10,048 $ 20,320 $ 11,463 $ 41,831 $ 39,741 $ 81,572 Segment expenses 3,776 5,097 5,147 14,020 38,683