Ah Realty Trust, Inc. · NYSE:AHRT
Ah Realty Trust — Armada Hoffler Properties — Q4 2018 Earnings Presentation
34 slides from Ah Realty Trust's earnings presentation, Feb 7, 2019
Slide 1: 4Q 2018 Supplemental Financial Package
4Q 2018 SUPPLEMENTAL FINANCIAL PACKAGE LP Pa f ARMADA HOFFLER ( | ee Gis wv a PROPERTIES
Slide 2: Table of Contents
Table of Contents 2 3 Forward Looking Statements 4 Corporate Profile 5 Highlights 6 Summary Information 7 Net Asset Value Component Data 8 Summary Balance Sheet 9 Summary Income Statement 10 FFO, Normalized FFO & Adjusted FFO 11 Outstanding Debt 12 Core Debt to Core EBITDA 13 Debt Information 14 Cap
Slide 3: Forward Looking Statements
Forward Looking Statements 3 This Supplemental Financial Package should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated February 7, 2019, which has been furnished as Exhibit 99.1 to our Form 8-K filed on February 7, 2019. The
Slide 4: Corporate Profile
Corporate Profile 4 Armada Hoffler Properties, Inc. (NYSE:AHH) is a full service real estate company that develops, constructs, acquires and manages institutional-grade office, retail and multifamily properties in the Mid-Atlantic and Southeastern United States. The Company also provides general con
Slide 5: Highlights
Highlights 5 • Net income of $4.9 million, or $0.07 per diluted share, for the quarter ended December 31, 2018 compared to net income of $5.8 million, or $0.09 per diluted share, for the quarter ended December 31, 2017. Net income of $23.5 million, or $0.36 per diluted share, for the year ended Dece
Slide 6: Summary Information
Summary Information 6 $ in thousands, except per share data Three months ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 OPERATIONAL METRICS Net income $4,895 $5,669 $5,945 $6,983 $5,768 Net income per diluted share $0.07 $0.09 $0.09 $0.11 $0.09 Rental properties Net Operating Income (NOI)
Slide 7: Net Asset Value Component Data
Net Asset Value Component Data 7 In thousands Stabilized Portfolio NOI (Cash) Taxable REIT Subsidiary (TRS) Three months ended Annualized Trailing 12 Months 12/31/2018 12/31/2018 General contracting gross profit(2) $6,147 Diversified Portfolio Office $0 $0 Retail 10,657 42,628 Non-Property Assets Mu
Slide 8: Summary Balance Sheet
Summary Balance Sheet 8 As of $ in thousands 12/31/2018 12/31/2017 Assets (Unaudited) Real estate investments: Income producing property $1,037,917 $910,686 Held for development 2,994 680 Construction in progress 135,675 83,071 Accumulated depreciation (188,775) (164,521) Net real estate investments
Slide 9: Summary Income Statement
Summary Income Statement 9 In thousands, except per share data Three months ended Year ended 12/31/2018 12/31/2017 12/31/2018 12/31/2017 Revenues (Unaudited) Rental revenues $30,731 $27,654 $116,958 $108,737 General contracting and real estate services 12,705 32,643 76,359 194,034 Total Revenues 43,
Slide 10: FFO, Normalized FFO & Adjusted FFO
FFO, Normalized FFO & Adjusted FFO(1) 10 $ in thousands, except per share data Three months ended (Unaudited) Year Ended (Unaudited) 12/31/2018 9/30/2018 6/30/2018 3/31/2018 2018 2017 Funds From Operations Net income $4,895 $5,669 $5,945 $6,983 $23,492 $29,925 Earnings per diluted share $0.07 $0.09
Slide 11: Outstanding Debt
Outstanding Debt 11 $ in thousands Debt Maturities & Principal Payments Effective Rate as of Outstanding as of Debt Stated Rate 12/31/2018 Maturity Date 2019 2020 2021 2022 2023 Thereafter 12/31/2018 Secured Notes Payable - Core Debt North Point Center Note 1(1) 6.45% 6.45% 2/5/2019 $9,352 $9,352 So
Slide 12: Core Debt to Core EBITDA
Core Debt to Core EBITDA(1) 12 $ in thousands Three months ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 Net Income $4,895 $5,669 $5,945 $6,983 $5,768 Excluding: Interest expense 5,540 4,677 4,497 4,373 4,157 Income tax provision (benefit) 523 (120) (166) (266) (56) Depreciation and amor
Slide 13: Debt Information
Debt Information 13 $ in thousands Total Debt Composition Weighted Average Percent of Debt Interest Rate Maturity Secured vs. Unsecured Debt Unsecured Debt 43.7% 4.0% 3.4 Yrs Unencumbered Summary Secured Debt 56.3% 4.3% 8.5 Yrs Variable vs. Fixed-rate Debt 12/31/2018 (1) Variable-rate Debt 50.3% 4.4
Slide 14: Capitalization & Financial Ratios
Capitalization & Financial Ratios 14 $ in thousands
Slide 15: Property Portfolio
Property Portfolio 15 As of December 31, 2018 Net Rentable Square Feet (RSF)(1) Town Unencumbered Core Development Core Development ABR per Property Anchor Tenant(s) Location Center ABR Year Built Properties Properties Total Occupancy(2) Leased(2) ABR(3) Leased SF(3) Retail Properties Cheesecake Fac
Slide 16: Property Portfolio - Continued
Property Portfolio - Continued 16 As of December 31, 2018 Net Rentable Square Feet (RSF)(1) Town Unencumbered Core Development Core Development ABR per Leased Property Anchor Tenant Location Center ABR Year Built Properties Properties Total Occupancy(2) Leased(2) ABR(3) SF(3) Office Properties 4525
Slide 17: Development and Redevelopment Pipeline
Development and Redevelopment Pipeline 17 (1) $ in thousands Schedule Property % Leased Construction Initial Stabilized Estimated Construction Loan Cost to AHH Development, Not Delivered Type Estimated(1) or LOI Start Occupancy Operation(2) Cost(1) Commitment Date Ownership % Anchor Tenants & Other
Slide 18: Mezzanine Investments
Mezzanine Investments 18 $ in thousands Schedule(1) Full Year 2018 Property % Leased Initial Option to Loan Mezzanine Mezzanine Mezzanine Investments Type Estimated(1) or LOI Occupancy Loan Maturity Interest Rate Purchase Balance Interest QTD Interest The Residences at Annapolis Junction Multifamily
Slide 19: Acquisitions & Dispositions
Acquisitions & Dispositions 19 $ 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 Lexington Square(3) Lexington, SC 85,531 $26,758 - $2,624 6.7% 3Q18 Lowes Foods Parkway Centre
Slide 20: Construction Business Summary
Construction Business Summary 20 $ in thousands Total Contract Work in Place as Estimated Date Location Value of 12/31/2018 Backlog of Completion Highlighted Projects One City Center Durham, NC $69,044 $66,250 $2,794 1Q 2019 Dinwiddie Municipal Complex Dinwiddie, VA 24,178 22,668 1,510 2Q 2019 Inter
Slide 21: Same Store NOI by Segment
Same Store NOI by Segment 21 $ in thousands (Reconciliation to GAAP located in appendix on pg. 34) Three months ended Year ended 12/31/2018 12/31/2017 $ Change % Change 12/31/2018 12/31/2017 $ Change % Change Office(1) (Unaudited) (Unaudited) Revenue $5,165 $4,779 $386 8.1% $14,125 $13,615 $510 3.7%
Slide 22: Top Tenants by Annualized Base Rent
Top 10 Tenants by Annualized Base Rent 22 $ in thousands As of December 31, 2018 Office Portfolio Number Lease Annualized Base % of Office Portfolio % of Total Portfolio Tenant of Leases Expiration Rent Annualized Base Rent Annualized Base Rent Clark Nexsen 1 2029 $ 2,588 12.5% 2.5% Mythics 1 2030 1
Slide 23: Office Lease Summary
Office Lease Summary 23 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 24: Office Lease Expirations
Office Lease Expirations 24 As of December 31, 2018 Square Footage % Portfolio % of Portfolio Annualized Base Number of Leases of Leases Net Rentable Annualized Base Annualized Rent per Leased Year of Lease Expiration Expiring Expiring(1) Square Feet Rent Base Rent Square Foot Available - 53,704 6.7
Slide 25: Retail Lease Summary
Retail Lease Summary 25 Renewal Lease Summary GAAP Cash Number of Leases Net rentable Net rentable Contractual Prior Rent Releasing Contractual Prior Rent Releasing Weighted Average TI & LC Quarter Signed SF Signed Leases Expiring SF Expiring Rent per SF per SF Spread Rent per SF per SF Spread Lease
Slide 26: Retail Lease Expirations
Retail Lease Expirations 26 As of December 31, 2018 Square Footage % Portfolio % of Portfolio Annualized Base Number of Leases of Leases Net Rentable Annualized Base Annualized Rent per Leased Year of Lease Expiration Expiring Expiring(1) Square Feet Rent Base Rent Square Foot Available - 159,923 4.
Slide 27: Appendix Definitions & Reconciliations
27 Appendix Definitions & Reconciliations
Slide 28: Definitions
Definitions 28 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 29: Definitions
Definitions 29 Normalized Funds From Operations: We calculate Normalized Funds From Operations (“Normalized FFO") as FFO calculated in accordance with the standards established by Nareit, adjusted for acquisition, development and other pursuit costs, gains or losses from the early extinguishment of
Slide 30: Definitions
Definitions 30 Adjusted EBITDA: We calculate Adjusted EBITDA as net income (loss) (calculated in accordance with GAAP), excluding interest expense, income taxes, depreciation and amortization, gains (or losses) from sales of depreciable operating property and mark-to-market adjustments on interest r
Slide 31: Same Store vs. Non-Same Store Properties
Same Store vs. Non-Same Store Properties 31 Three Months Ended Year Ended Three Months Ended Year Ended 12/31/2018 to 2017 12/31/2018 to 2017 12/31/2018 to 2017 12/31/2018 to 2017 Same Non-Same Same Non-Same Same Non-Same Same Non-Same Store Store Store Store Store Store Store Store Retail Propertie
Slide 32: Reconciliation to Property Portfolio NOI
Reconciliation to Property Portfolio NOI 32 $ in thousands Three months ended 12/31 Year ended 12/31 2018 2017 2018 2017 Office Same Store(1) Rental revenues $5,165 $4,779 $14,125 $13,615 Property expenses 1,836 1,741 5,496 5,196 NOI 3,329 3,038 8,629 8,419 Non-Same Store NOI(2) (103) (81) 4,180 3,4
Slide 33: Reconciliation to Property Portfolio NOI
Reconciliation to Property Portfolio NOI 33 $ in thousands Three months ended 12/31/2018 Diversified Portfolio Office Retail Multifamily Total NOI - Cash Basis ($0) $10,657 $2,533 $13,189 Net effect of straight-line rents - 84 113 197 Amortization of lease incentives and (above) below market rents -
Slide 34: Reconciliation to GAAP Net Income
Reconciliation to GAAP Net Income 34 $ in thousands Three months ended 12/31/2018 Total Rental General Contracting & Office Retail Multifamily Properties Real Estate Services Total Segment revenues$ 5,165 $ 17,708 $ 7,860 $ 30,733 $ 12,705 $ 43,438 Segment expenses 1,939 4,689 3,542 10,170 12,154 22
Armada Hoffler Properties — Q4 2018 Earnings Presentation on 6ix