Ah Realty Trust, Inc. · NYSE:AHRT
Ah Realty Trust — Armada Hoffler Properties — REITweek Investor Conference 2020
26 slides from Ah Realty Trust's conference presentation, June 2020
Slide 1: REITweek Investor Presentation June 2020
R E I Tw e e k I n v e s t o r P r e s e n t a t i o n June 2020
Slide 2: Forward Looking Statements
2 FORWARD LOOKING STATEMENTS Armada Hoffler Certain matters within this presentation are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause th
Slide 3: Corporate Overview
3 CORPORATE OVERVIEW As of 5/27/20 unless otherwise noted PORTFOLIO OVER 4.9M 2,000 96% RSF APARTMENT UNITS WEIGHTED AVERAGE OCCUPANCY ADDED TO THE ADDED TO THE $720M MSCI US REIT INDEX S&P SMALLCAP Closed on the sale of 7 RETAIL EQUITY MARKET CAP RMZ 600 INDEX as of 6/19/2017 properties on 5/29/20
Slide 4: Unique Integrated Business Model
4 UNIQUE INTEGRATED BUSINESS MODEL ADVANTAGE: Delivers Sustainable, Low Risk Growth ASSET MANAGEMENT DEVELOPMENT CONSTRUCTION High Occupancy Growth Pipeline Third-Party Fee Income Consistent Cash Flow Wholesale Equity Creation Reduced Development Risk Strong Quality Credit Tenants Public-Private Par
Slide 5: 2020 Disposition/Acquisition
5 2020 DISPOSITION/ACQUISITION COMPONENTS TOTAL COST AHH CASH 7 RETAIL PROPERTY DISPOSITION $90M Credit Facility Paydown $62M Cash $26M $26M Selling Cost $2M NEXTON SQUARE 1031 ACQUISITION $42M Conversion of Existing Mezz - Cash $12M $12M Construction Loan $24M Cash $6M -$6M TOTAL AHH CASH $32M DISP
Slide 6: Portfolio Composition by NOI
6 PORTFOLIO COMPOSITION BY NOI PROJECTED PORTFOLIO 1Q20 1Q20 PROFORMA(1) FULLY STABILIZED(1)(2) 24% 26% 28% 38% 32% 42% 23% 25% 11% 11% 29% 11% Entertainment & Retail Office Multifamily Mixed-Use Retail (1) Excludes 7 retail properties disposed on 5/29/20 (2) Assumes the announced pipeline is delive
Slide 7: Nexton Square Acquisition
7 NEXTON SQUARE ACQUISITION Nexton Square is an open-air lifestyle center under construction in Summerville, SC, in the greater Charleston MSA. Located at the entrance to a new 4,500-acre master-planned community, Nexton Square will serve as the retail gateway to over 10,000 new single-family and mu
Slide 8: AHH Plans Post COVID-19
AHH PLANS POST COVID-19
Slide 9: Development Update
9 DEVELOPMENT UPDATE As of 3/31/20 COST TO CONSTRUCTION CASH REQUIREMENT PROPERTY TYPE ESTIMATED COST COST TO DATE COMPLETE LOAN AVAILABLE REMAINING DEVELOPMENT Summit Place (Meeting Street) Multifamily $56M $53M $3M $3M $0M Charleston, SC Wills Wharf Office $120M $98M $22M $22M $0M Baltimore, MD TO
Slide 10: Mezzanine Loan Update
10 MEZZANINE LOAN UPDATE As of 4/30/20 ALL MEZZANINE PROJECTS ARE FULLY FUNDED, NO FUTURE CASH REQUIREMENTS CASH ORIGINAL 2020 CURRENT 2020 PROJECT REQUIREMENT VARIANCE EXPECTATION EXPECTATION REMAINING Nexton Square(1) $0 $0.4M $1.2M $0.8M (2) The Residences at Annapolis Junction $0 $5.2M $2.5M ($2
Slide 11: Columbus Village II Redevelopment
11 COLUMBUS VILLAGE II REDEVELOPMENT Columbus Village II is the next phase of redevelopment in the Town Center of Virginia Beach. Currently occupied by Bed, Bath, and Beyond, this 5-acre site is in an ideal location to add to Town Center’s existing 750 apartment units. Given the current economic cir
Slide 12: Redevelopment
12 REDEVELOPMENT Cosmopolitan Apex Entertainment Columbus Village I (Former Dick’s Sporting Apartments Goods) $14M redevelopment cost $9M redevelopment cost $8M redevelopment cost expected return on expected return on expected return on 9% investment 8% investment 7% investment 2021 anticipated comp
Slide 13: Ten Tryon
13 TEN TRYON DEVELOPMENT-ON HOLD 220,000 square feet of office and retail space Fortune 100 Office Tenant 54,000 square feet of office under LOI Publix 40,000 square feet street-level retail North Tryon The North Tryon Vision Plan centers on creating a district that will attract, retain and strength
Slide 14: Southern Post
14 SOUTHERN POST DEVELOPMENT-ON HOLD Roswell Town Center is a mixed-use project expected to total 270,000 square feet. The center will include 41,000 square feet of retail, 95,000 square feet of office and 138 multifamily units. Location Square Feet Roswell, GA 270,000 Type Mixed-use
Slide 15: Chronicle Mill
15 CHRONICLE MILL DEVELOPMENT-ON HOLD Chronicle Mill is a 117 year-old mill with a vision of revitalization into a multifamily project. Located just outside of Charlotte, North Carolina, the project will include 239 apartment units and 10,000 square feet of retail space. A portion of the site is exp
Slide 16: COVID-19 Update
C O V I D - 1 9 U P D AT E
Slide 17: Construction Update
17 CONSTRUCTION UPDATE AHH ADVANTAGE CONSTRUCTION BUSINESS IS ON TRACK FOR ANOTHER STRONG YEAR, HELPING TO MITIGATE THE IMPACT OF THE PANDEMIC ON OUR BUSINESS AHH RESPONSE LOW HIGH – All job sites remain open and operating under current guidelines Expected Construction Segment $7.3M $8.0M Gross Prof
Slide 18: Overall Rent Collections
18 OVERALL RENT COLLECTIONS(1)(2) $ in thousands 82% OF RENT COLLECTED ACROSS PORTFOLIO IN MAY, EXCLUDING THE 7 RETAIL PROPERTIES DISPOSED ON 5/29/20 APRIL RENT COLLECTED DEFERRED UNCOLLECTABLE MAY RENT COLLECTED DEFERRED UNCOLLECTABLE $12,441 $10,330 $1,933 $178 $12,292 $10,019 $2,158 $115 OVERALL
Slide 19: Top Tenant Collections
19 TOP 20 TENANT COLLECTIONS(1)(2) $ in thousands APRIL RENT COLLECTED DEFERRED MAY RENT COLLECTED DEFERRED $3,188 $2,848 $340 $3,221 $2,807 $414 APRIL COLLECTIONS MAY COLLECTIONS 11% 13% 89% 87% (1) Rent due plus recoveries due and rent collected as of 5/27/20 (2) Excludes 7 retail properties dispo
Slide 20: Multifamily Rent Collections
20 MULTIFAMILY RENT COLLECTIONS(1) $ in thousands AHH RESPONSE – Setting up reasonable payment plans for tenants that have asked for rent relief due to loss of employment – Maximizing the use of technology and limiting interaction with leasing/maintenance staff to essential tasks – Closing amenities
Slide 21: Office Rent Collections
21 OFFICE RENT COLLECTIONS(1) $ in thousands APRIL RENT COLLECTED MAY RENT COLLECTED 100% 100% 0% APRIL RENT COLLECTED DEFERRED MAY RENT COLLECTED DEFERRED $3,267 $3,258 $9 $3,280 $3,273 $7 AHH RESPONSE – Communicating regularly with tenants ensuring compliance with state and local guidelines – Mana
Slide 22: Retail Rent Collections
22 RETAIL RENT COLLECTIONS(1)(2) $ in thousands, excludes 7 retail properties sold on 5/29/20 AHH RESPONSE – Communicating regularly with tenants and ensuring compliance with state and local guidelines – Reviewing relief requests and, if warranted, establishing tenant-specific deferral/repayment pla
Slide 23: Retail Top Tenant Rent Composition
23 RETAIL TOP TENANT RENT COMPOSITION(1)(2) TOP 10 TENANTS: APRIL TOP 10 TENANTS: MAY RENT COLLECTED(3) RENT COLLECTED(3) 25% 30% Collected 75% 70% (1) Data reported relates to rent charges and collections for retail tenants through 5/27/20, and does not correspond to the GAAP segment reporting clas
Slide 24: May Retail Rent Composition
24 MAY RETAIL RENT COMPOSITION(1)(2) TENANT MIX BASED ON TENANT MIX BASED ON RENT DUE(3) RENT DUE(3) 17% 30% 55% 28% 70% Anchor In-Line & National Outparcel COLLECTED DEFERRED COLLECTED DEFERRED Anchors 83% 17% National 60% 40% Junior Anchors 60% 40% Local/Regional 63% 37% In-Line & Outparcels 54% 4
Slide 25: Debt Metrics
25 DEBT METRICS As of 3/31/20 unless otherwise noted $90M ASSET SALE FROM UNENCUMBERED BORROWING BASE ENHANCES THE COMPANY’S LIQUIDITY WEIGHTED AVERAGE INTEREST RATE 3.2% SWAPS/CAPS $145M of 4-year interest rate swaps were entered into during 1Q20 TOTAL FIXED/HEDGED(1) 100% Maturity Date Notional Am
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