Ah Realty Trust, Inc. · NYSE:AHRT
Ah Realty Trust — Armada Hoffler Properties — Investor Presentation (March 2025)
27 slides from Ah Realty Trust's investor presentation, Mar 24, 2025
Slide 1: Investor Presentation 2025
1 Chandler Residences at Southern Post INVESTOR PRESENTATION 2025
Slide 2: Shareholder Value
2 SHAREHOLDER VALUE Diversified Business Model Positive Sustainability Transitioning Balance Sheet Value Creation Through Development Class-A, Trophy Properties Strong Operational Metrics with High Occupancy
Slide 3: Advantage of Diversification in Core Markets
3 ADVANTAGE OF DIVERSIFICATION IN CORE MARKETS Our portfolio consists of: mixed-use ecosystem (multifamily + retail + office) and grocery-anchored shopping centers in mid-Atlantic and Southeast markets (1) Mixed-Use consists of Town Center of Virginia Beach, Harbor Point – Baltimore Waterfront, One
Slide 4: Current Snapshot as of December 31, 2024
4 CURRENT SNAPSHOT AS OF DECEMBER 31, 2024 TOTAL PORTFOLIO 6.2M STABILIZED COMMERCIAL SF 2,492 STABILIZED MULTIFAMILY UNITS ABR IN MIXED-USE COMMUNITIES 58% GROWTH FOCUS MULTIFAMILY & GROCERY ANCHORED RETAIL COMMERCIAL GAAP RELEASING SPREAD 12.3% ENTERPRISE VALUE(1) $2.4B BBB CREDIT RATING STABILIZE
Slide 5: 2025 Outlook & Assumptions
5 2025 OUTLOOK & ASSUMPTIONS OUTLOOK LOW HIGH PROPERTY PORTFOLIO NOI $171.2M $175.8M CONSTRUCTION SEGMENT PROFIT $6.8M $8.6M G&A EXPENSES ($17.6M) ($16.6M) INTEREST INCOME $15.7M $16.7M ADJUSTED INTEREST EXPENSE ($63.5M) ($59.5M) NORMALIZED FFO PER DILUTED SHARE $1.00 $1.10 GUIDANCE ASSUMPTIONS • Ha
Slide 6: Value Creation
6 VALUE CREATION STEP 1 - Capital raise to equitize development projects – complete, Sept. ‘24 STEP 2 - Reduce leverage; improve quality of balance sheet - in progress STEP 3 - Focused property income growth through responsible capital allocation OUR CORE DNA Mixed-use centers Focused on high qualit
Slide 7: Dividend Payout
7 DIVIDEND PAYOUT $0.78 $0.82 $0.56 $0.97 $0.93 $0.81 $0.81 $0.75 $0.66 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 FY2023 FY2024 FY2025E Dividend Per Share AFFO Per Share AFFO Less Non-Cash Interest Income Per Share
Slide 8: Balance Sheet Summary
8 BALANCE SHEET SUMMARY 5.8x STABILIZED PORTFOLIO DEBT/STABILIZED PORTFOLIO ADJ. EBITDAre 7.2x NET DEBT/TOTAL ADJUSTED EBITDAre 8.2x NET DEBT + PREFERRED / TOTAL ADJ. EBITDAre 4.4% PORTFOLIO WTD. AVG. INTEREST RATE 5.5x - 6.5x Net Debt / Total Adjusted EBITDAreLONG-TERM TARGET *Leverage currently el
Slide 9: Real Estate Financing
9 REAL ESTATE FINANCING AS OF DECEMBER 31, 2024 SOLIS NORTH CREEK Huntersville, NC Size: 303 MF Units Estimated Stabilization: 4Q27 SOLIS KENNESAW Kennesaw, GA Size: 239 MF Units Estimated Stabilization: 1Q26 SOLIS PEACHTREE CORNERS Peachtree Corners, GA Size: 249 MF Units Estimated Stabilization: 3
Slide 10: Value Creation Platform - Expansion Platform
10 VALUE CREATION PLATFORM- EXPANSION PLATFORM Southern Post Development Portfolio Asset • Mixed-use community in Roswell, Georgia • 95k SF of office space and 42k SF of retail space • 128 apartments and nine townhomes (Chandler Residences) The Allure at Edinburgh Real Estate Financing Portfolio Ass
Slide 11: Value Creation Platform - Expansion Platform Cont.
11 VALUE CREATION PLATFORM- EXPANSION PLATFORM CONT. T. Rowe Price Global Headquarters Joint Venture Portfolio Asset • 553K SF office and 20K SF of retail • 2,000 T. Rowe Price associates based in this office • Harbor Point is one of the most prominent waterfront developments on the East Coast spann
Slide 12: Value Creation Platform - Significant Additional NOI Expected
12 VALUE CREATION PLATFORM- EXPANSION PLATFORM SP ALLURE SOLIS ALLIED T ROWE CV II Significant Additional NOI Expected When Stabilized1 1. There can be no assurances that Armada Hoffler will acquire the properties on the terms it anticipates or at all. Further, there can be no assurances that (i) th
Slide 13: Development/Redevelopment Opportunities
13 DEVELOPMENT/REDEVELOPMENT OPPURTUNITIES OPPORTUNITIES Assumptions regarding future opportunities are subject to change. IN-PROGRESS Projects Description of Project Columbus Village II Redevelopment of a 37,500 square foot building previously occupied by Bed Bath & Beyond into a grocery- anchored
Slide 14: Significant Commercial Lease Activity Over Past Months
14 SIGNIFICANT COMMERICAL LEASE ACTIVITY OVER PAST 6 MONTHS • The Gathering Spot at The Interlock ($2M ABR) • F1 Arcade at The Interlock ($765k ABR) • Backfill of WeWork at The Interlock: • Look Listen at The Interlock ($335k ABR) • Directional Capital at The Interlock ($281k ABR) • Alloy at The Int
Slide 15: Portfolio Highlights
15 PORTFOLIO HIGHLIGHTS WEIGHTED AVERAGE PORTFOLIO OCCUPANCY 4Q24 SAME STORE NOI GROWTH (GAAP) NEW & RENEWED COMMERCIAL SF IN 4Q24 315K 96% 3.6% AS OF DECEMBER 31, 2024 71 STABILIZED PROPERTIES(1) 6.3 COMMERCIAL WEIGHTED AVERAGE LEASE TERM REMAINING (YEARS) (1) Mixed-use portions of properties count
Slide 16: Mixed-Use Communities
16 MIXED-USE COMMUNITIES • 2.9M SF COMMERCIAL SPACE IN MIXED-USE PORTFOLIO • 2.2M SF OF CLASS A PREMIER OFFICE SPACE • 0.7M SF OF RETAIL • 1,151 MF UNITS • STRATEGICALLY LOCATED IN CORE SUBMARKETS • AVERAGE WALK SCORE OF 90 • POTENTIAL FUTURE SOURCE OF CAPITAL THROUGH SALE AS OF DECEMBER 31, 2024 (1
Slide 17: Mixed-Use Communities
17 MIXED-USE COMMUNITIES 95.6% OCCUPIED 33 STABILIZED MIXED-USE PROPERTIES 2,914,870 COMMERCIAL RSF 1,151 MULTIFAMILY UNITS $118.1M ABR/AQR – 4Q24 92.6% 97.0% 94.4% Mixed-Use Retail Mixed-Use Office Mixed-Use Multifamily MIXED-USE OCCUPANCY LEASE EXPIRATIONS % of Total Commercial Mixed-Use SF Expiri
Slide 18: Non Mixed-Use Portfolio
18 NON MIXED-USE PORTFOLIO NON MIXED-USE RETAIL: 95.9% OCCUPIED 29 STABILIZED RETAIL PROPERTIES 3,086,975 RSF $52.2M ABR – 4Q24 NON MIXED-USE MULTIFAMILY: 96.1% OCCUPIED 6 STABILIZED MULTIFAMILY PROPERTIES 1,341 MULTIFAMILY UNITS $27.6M AQR – 4Q24
Slide 19: Top Investment Grade Tenants by ABR
19 TOP 10 INVESTMENT GRADE1 TENANTS BY ABR AS OF DECEMBER 31, 2024 7.2% 4.2% 3.7% 1.8% 0.9% 0.9% 0.8% 0.8% 0.7% 0.7% (1) Investment Grade per public sources. (2) Reflects T. Rowe Price at 50% ABR to account for Armada Hoffler’s JV Ownership %. 2
Slide 20: Appendix
20 INVESTOR PRESENTATION Appendix
Slide 21: Southern Post
21 SOUTHERN POST • New mixed-use project, diverse income stream • High barrier to entry • Outdoor spaces • Amenitized walkable environment • 137 MULTIFAMILY UNITS (CHANDLER RESIDENCES) – 95% LEASED(1) • 95K SQUARE FEET OF OFFICE ANCHORED BY VESTIS AND 42K SQUARE FEET OF RETAIL – 72% LEASED OR LOI(1)
Slide 22: The Interlock
22 THE INTERLOCK • An unparalleled destination for entertainment, dining, shopping and more • Located in the West Midtown neighborhood • Amenitized walkable environment • NINE-ACRE DEVELOPMENT FEATURING 200K SQUARE FEET OF OFFICE AND 105K SQUARE FEET OF CAREFULLY CURATED RETAIL • PARTNERSHIP WITH GE
Slide 23: Town Center of Virginia Beach
23 TOWN CENTER OF VIRGINIA BEACH MIXED-USE COMMUNITY • 550K SQUARE FEET OF RETAIL • 810K SQUARE FEET OF OFFICE • ~760 MULTIFAMILY UNITS • THREE ADDITIONAL PARCELS FOR DEVELOPMENT/REDEVELOPMENT (PARCEL 2 CURRENTLY BEING REDEVELOPED)
Slide 24: Quick Facts: Virginia Beach Market
24 QUICK FACTS 12th Largest MSA on East Coast 6% Population growth since 2010 $79K Median household income 1.8M MSA population (37th most populous MSA in U.S.) 3.0% Unemployment 2nd Largest MSA in Virginia KEY INDUSTRIES & GROWTH SECTORS NOTABLE EMPLOYERS Education STABLE, RECESSION RESISTANT ECONOM
Slide 25: Harbor Point
25 HARBOR POINT (1) Represents 100% of the property of which the company owns 90% economic interest AHH Owned JV Development with Beatty Development Group 1 - Thames Street Wharf 263,000 Office 5 - T. Rowe Price Global HQ 550,000 Office 2 - 1405 Point 289 MF units 20,000 Retail 3 - Wills Wharf 328,0
Slide 26: Baltimore Market Review
26 BALTIMORE MARKET REVIEW QUICK FACTS 2.8M MSA population, 28th highest 7% Population growth over last 10 years $94K Average household income 29th Most populous city in the U.S. 3.7% Unemployment 7th Largest MSA on the East Coast KEY INDUSTRIES AND SERVICES Education The New “Main & Main” – That Ca
Slide 27: Forward-Looking Statements
27 This presentation should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated February 19, 2025, which has been furnished as Exhibit 99.1 to our Form 8-K furnished on February 19, 2025. The Company makes statements in this pres
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