Ah Realty Trust, Inc. · NYSE:AHRT
Ah Realty Trust — Armada Hoffler Properties — Q4 2023 Earnings Presentation
36 slides from Ah Realty Trust's earnings presentation, Feb 22, 2024
Slide 1: Supplemental Financial Package
SUPPLEMENTAL FINANCIAL PACKAGE
Slide 2: Forward-Looking Statements
2 This Supplemental Financial Package should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated February 22, 2024, which has been furnished as Exhibit 99.1 to our Form 8-K furnished on February 22, 2024. The Company makes statem
Slide 3: Board of Directors, Corporate Officers and Corporate Profile
3 BOARD OF DIRECTORS Daniel A. Hoffler, Executive Chairman of the Board Louis S. Haddad, Vice Chairman 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, Independen
Slide 4: Highlights
4 HIGHLIGHTS • Net loss attributable to common stockholders and OP Unitholders of $23.9 million and $4.5 million for the three months and year ended December 31, 2023, respectively, or $0.27 and $0.05 per diluted share, respectively. • Funds from operations attributable to common stockholders and OP
Slide 5: 2024 Outlook & Assumptions
5 2024 OUTLOOK & ASSUMPTIONS OUTLOOK(1) LOW HIGH PORTFOLIO NOI $165.6M $170.0M CONSTRUCTION SEGMENT PROFIT $12.8M $14.3M G&A EXPENSES $18.8M $18.2M INTEREST INCOME $18.8M $19.4M INTEREST EXPENSE(2) $57.4M $56.8M NORMALIZED FFO PER DILUTED SHARE $1.21 $1.27 (1) See appendix for definitions. Ranges ex
Slide 6: Summary Information
6 SUMMARY INFORMATION $ IN THOUSANDS, EXCEPT PER SHARE (1) Calculation updated 4Q 2023, see calculation definition on page 14. Prior period calculations have been adjusted to reflect new calculation. (2) Excludes GAAP adjustments. (3) See appendix for definitions. (4) Total occupancy weighted by ann
Slide 7: Summary Income Statement
7 SUMMARY INCOME STATEMENT $ IN THOUSANDS, EXCEPT PER SHARE Three Months Ended Year Ended 12/31/2023 12/31/2022 12/31/2023 12/31/2022 (Unaudited) Revenues Rental Revenues $59,842 $55,692 $238,924 $219,294 General Contracting and Real Estate Services Revenues 126,911 95,912 413,131 234,859 Interest I
Slide 8: Summary Balance Sheet
8 SUMMARY BALANCE SHEET $ IN THOUSANDS As Of 12/31/2023 12/31/2022 (Unaudited) Assets Real Estate Investments: Income Producing Property $2,093,032 $1,884,214 Held for Development 11,978 6,294 Construction in Progress 102,277 53,067 Accumulated Depreciation (393,169) (329,963) Net Real Estate Invest
Slide 9: FFO, Normalized FFO & AFFO
9 FFO, NORMALIZED FFO & AFFO(1) $ IN THOUSANDS, EXCEPT PER SHARE Three Months Ended (Unaudited) Year Ended (Unaudited) 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2023 12/31/2022 Funds From Operations Net (Loss) Income Attributable to AHH and OP Unitholders ($23,938) $5,343 $11,729 $2,376 ($4,490
Slide 10: Net Asset Value Component Data
10 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 12/31/2023. (2) Includes 100% of joint ventures. (3) Includes leases for spaces occupied by the Company which are eliminated for GAAP purposes. (4)
Slide 11: Debt to Adjusted EBITDA
11 DEBT TO ADJUSTED EBITDA $ 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) Total notes payable less GAAP ad
Slide 12: Debt Management
12 DEBT MANAGEMENT $ IN THOUSANDS Total Debt Composition Weighted Average % of Debt Interest Rate Maturity Variable vs. Fixed-Rate Debt Variable-Rate Debt(1)(2) 41.7 % 4.5 % 2.9 Yrs Fixed-Rate Debt(3)(4) 58.3 % 3.7 % 4.7 Yrs Secured vs. Unsecured Debt Unsecured Debt(2) 54.4 % 4.2 % 3.1 Yrs Secured D
Slide 13: Outstanding Debt
13 OUTSTANDING DEBT $ IN THOUSANDS (1) Excludes extension options. (2) Subject to a rate floor. (3) Includes debt subject to designated interest rate caps. (4) Loan has two 12-month extension options not reflected in this table. Debt Maturities & Principal Payments Debt Stated Rate Effective Rate as
Slide 14: Capitalization & Financial Ratios
14 CAPITALIZATION & FINANCIAL RATIOS $ IN THOUSANDS, EXCEPT PER SHARE AS OF DECEMBER 31, 2023 (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 12/29/23. (3) Reflects quarterly Total Adjusted EBI
Slide 15: Stabilized Portfolio Summary
15 STABILIZED PORTFOLIO SUMMARY AS OF DECEMBER 31, 2023 SEE APPENDIX FOR FULL LIST OF PROPERTIES (1) See appendix for definitions and portfolio detail. (2) Includes WeWork at The Interlock whose lease terminated subsequent to quarter end. COMMERCIAL PORTFOLIO Retail Properties # of Properties Net Re
Slide 16: Same Store NOI by Segment
16 (1) Excludes expenses associated with the Company’s in-house asset management division of $0.8M & $0.7M for the three months ended 12/31/2023 & 12/31/2022, respectively, and $3.4M & $2.8M for the year ended 12/31/2023 & 12/31/2022, respectively. (2) Includes straight-line rent write-offs for WeWo
Slide 17: Active Development Projects
17 ACTIVE DEVELOPMENT PROJECTS $ IN THOUSANDS Southern Post Roswell, GA Parcel 4 (Allied | Harbor Point) Baltimore, MD Schedule(1) Projects Property Type Estimated Size(1) % Leased or LOI Construction Start Initial Occupancy Stabilized Operation(2) Estimated Cost(1) Loan Commitment Funded to Date AH
Slide 18: Real Estate Financing
18 REAL ESTATE FINANCING $ IN THOUSANDS AS OF DECEMBER 31, 2023 Solis City Park Charlotte, NC The Interlock Atlanta, GA Solis Gainesville II Gainesville, GA Solis Kennesaw Kennesaw, GA Outstanding Investments (1) Property Type Estimated Size(2) % Leased or LOI Initial Occupancy Loan Maturity Interes
Slide 19: General Contracting & Real Estate Services
19 GENERAL CONTRACTING & REAL ESTATE SERVICES $ IN THOUSANDS Lakepointe Apartments Charlotte, NC Third-Party Backlog as of Q4 2023 Beginning Backlog $513,578 New Contracts 86,060 Work Performed (127,468) Ending Backlog $472,170 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Trailing 4 Quarters Revenue $126,911 $99
Slide 20: Net Income by Segment
20 NET INCOME BY SEGMENT $ IN THOUSANDS Three Months Ended December 31, 2023 Retail Real Estate Office Real Estate Multifamily Real Estate General Contracting and Real Estate Services Real Estate Financing Unallocated Total Revenues Rental Revenues $24,758 $20,361 $14,723 $— $— $— $59,842 General Co
Slide 21: Acquisitions & Dispositions
21 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, Pindrop, Puttshack 2022 606,181 / 103 units $2
Slide 22: Top Tenants by ABR
22 TOP 20 TENANTS BY ABR(1) $ IN THOUSANDS AS OF DECEMBER 31, 2023 Commercial Portfolio Tenant Investment Grade Rating(2) Number of Leases Lease Expiration Annualized Base Rent % of Total Annualized Base Rent Constellation Energy Generation ü 1 2036 $15,010 7.5% Morgan Stanley ü 3 2028 - 2035 8,733
Slide 23: Lease Summary
23 LEASE SUMMARY (1) Excludes leases from properties in development. 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 2023 14 120,796 8.5 % 3.0 % 4.7 $229,312 $1.90 Q3 2
Slide 24: Lease Expirations
24 LEASE EXPIRATIONS(1) AS OF DECEMBER 31, 2023 (1) Excludes leases from properties in development and delivered, but not yet stabilized. (2) Represents leases that expired on 12/31/23. The spaces are available for lease as of 1/1/24. OFFICE Year Leases Expiring Square Footage Expiring % Portfolio N
Slide 25: Appendix: Definitions & Reconciliations
25Town Center of Virginia Beach Virginia Beach, VA APPENDIX DEFINITIONS & RECONCILIATIONS
Slide 26: Definitions
26 ANNUALIZED BASE RENT: For the properties in our retail & office portfolios, we calculate annualized base rent (“ABR”) by multiplying (a) monthly base rent (defined as cash base rent, before contractual tenant concessions and abatements, and excluding tenant reimbursements for expenses paid by us)
Slide 27: Definitions: Net Operating Income
27 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 28: Definitions
28 DEFINITIONS OCCUPANCY: The occupancy for each of our retail & office properties is calculated as (a) square footage under executed leases as of the last day of the quarter, divided by (b) net rentable square feet, expressed as a percentage. Occupancy for our multifamily properties is calculated a
Slide 29: Definitions
29 DEFINITIONS STABILIZED PROPERTY DEBT: We calculate Stabilized Property Debt as our total debt secured by our stabilized properties, excluding loans associated with our development pipeline and our unsecured line of credit. TOTAL ADJUSTED EBITDA: We calculate Total Adjusted EBITDA as net income (l
Slide 30: Property Portfolio
30 PROPERTY PORTFOLIO AS OF DECEMBER 31, 2023 (1) See appendix for definitions. (2) The Company leases all or a portion of the land underlying this property pursuant to a ground lease. Retail Properties - Stabilized Location Year Built/ Redeveloped Net Rentable SF Occupancy(1) ABR(1) ABR per Occupie
Slide 31: Property Portfolio Cont.
31 PROPERTY PORTFOLIO CONT. AS OF DECEMBER 31, 2023 (1) See appendix for definitions. (2) The Company leases all or a portion of the land underlying this property pursuant to a ground lease. (3) The Company occupies 47,644 square feet at these two properties at an ABR of $1.6M, or $33.8 per leased s
Slide 32: Reconciliation of Debt & EBITDA
32 $ IN THOUSANDS RECONCILIATION OF DEBT & EBITDA (1) Excludes GAAP adjustments. Three Months Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Property Net Operating Income $39,283 $42,290 $40,644 $37,846 Property Other Income (Expense), Net (399) (63) (93) (47) Non-Recurring Bad Debt Adjustment 2,730
Slide 33: Capital Expenditures
33 QUARTER TO DATE(1) YEAR TO DATE(1) $ IN THOUSANDS AS OF DECEMBER 31, 2023 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 Improvem
Slide 34: Reconciliation to Property Portfolio NOI
34 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 2023 2022 2023 2022 Retail Same Store Rental Revenues $21,549 $21,418 $87,019 $84,100 Property Expenses 5,294 5
Slide 35: Reconciliation to GAAP Net Income
35 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 calcul
Slide 36: Reconciliation of Net Income to Adjusted EBITDA
36 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA $ IN THOUSANDS Three Months Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Net (loss) income attributable to common stockholders and OP Unitholders ($23,938) $5,343 $11,729 $2,376 Excluding: Depreciation and Amortization 35,270 22,462 19,878 18,468
Armada Hoffler Properties — Q4 2023 Earnings Presentation on 6ix