Ah Realty Trust, Inc. · NYSE:AHRT
Ah Realty Trust — Armada Hoffler Properties — REITWeek: NAREIT's Investor Forum 2014
25 slides from Ah Realty Trust's conference presentation, Jun 3, 2014
Slide 1: REITWeek: NAREIT's Investor Forum
REITWeek: NAREIT’s Investor Forum June 2014 Exhibit 99.1
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). In part
Slide 3: Armada Hoffler Today: A Different Kind of REIT
ARMADA HOFFLER TODAY A Different Kind of REIT Solid Dividend Yield Today Powerful Growth Engine for Tomorrow >6% yield ~$150M development pipeline every ~2 years Unique business model $1.4B assets developed years
Slide 4: A Different Kind of REIT: At a Glance
A DIFFERENT KIND OF REIT: At a Glance • Full-service REIT focused on institutional grade office, retail and multifamily properties – 25 properties – focused on Mid-Atlantic region • Diversified portfolio • NYSE: AHH, market cap ~$319M as of 5/28/14 • Enterprise value > $600M • Management and prior o
Slide 5: Why Our Core Market is Attractive
Hampton Roads Virginia Virginia Beach A DIFFERENT KIND OF REIT: Why Our Core Market is Attractive America’s Top State for Business – Virginia is One of the Best States for Business Virginia Beach – nd Most Business-Friendly City in America – June 2013 “ ” “ ” “ ” • Government named Best-run City in
Slide 6: Hampton Roads Metropolitan Area – Stable, Growing, Diversified
A DIFFERENT KIND OF REIT: Hampton Roads Metropolitan Area – Stable, Growing, Diversified 65% of NOI from operating portfolio falls within this area Top 3 largest cities in Virginia within Hampton Roads MSA – Virginia Beach #1, Norfolk #2, Chesapeake #3 Highly skilled labor pool – unemployment rate o
Slide 7: Unique Integrated Business Model
A DIFFERENT KIND OF REIT: Unique Integrated Business Model CONSTRUCTION DEVELOPMENT STABLE PORTFOLIO ADVANTAGE Delivers Sustainable Low Risk Growth • Reduces development risk • Fee income • Growth pipeline • Wholesale equity creation • High occupancy • Consistent cash flow
Slide 8: Integrated Model – Delivers Unique Advantages
A DIFFERENT KIND OF REIT: Integrated Model – Delivers Unique Advantages • Low risk – 50-60% leased prior to breaking ground • Assets developed at wholesale cost – creates equity • Focus on assets at “main and main” at secondary and tertiary Mid- Atlantic markets • Construction Division - Projects br
Slide 9: Our Integrated Model in Action – Virginia Beach Town Center
Before After A DIFFERENT KIND OF REIT: Our Integrated Model in Action – Virginia Beach Town Center • Transformative central business district development with $500M developed since 2000 exclusively by Armada Hoffler – City of Virginia Beach has contributed $150M – 51% of tenants are new to City of V
Slide 10: Multiple Growth Drivers
Multiple Growth Drivers Stable Construction Income that Drives Brand Recognition and Opportunities Development Pipeline Strategic Acquisitions Stable Portfolio with Organic Growth Over Time
Slide 11: Well Balanced Portfolio
1) STABLE PORTFOLIO Well Balanced Portfolio Breakdown of NOI Contribution Three months ended 3/31/14 Retail 38% Multifamily 15% General Contracting 11% Office 36%
Slide 12: We Attract the Best Tenants
High quality portfolio Office Tenants* Retail Tenants* 1) STABLE PORTFOLIO We Attract the Best Tenants *Representative
Slide 13: Portfolios managed for long-term, stable cash flow
Portfolios managed for long-term, stable cash flow 1) STABLE PORTFOLIO High Occupancies – Historical Outlook Occupancy as of quarter end Office Occupancy Retail Occupancy Multifamily Occupancy 95.4% 50% 60% 70% 80% 90% 100% 1Q 93.4% 1Q 94.2% 1Q
Slide 14: Lease Renewals Actively Managed to Reduce Risk
1) STABLE PORTFOLIO Lease Renewals Actively Managed to Reduce Risk As of 3/31/14 Year of Lease Expirations Office Lease Expirations (% Office Portfolio ABR) (1) Year of Lease Expirations Retail Lease Terms (% Retail Portfolio ABR) (1) 5.2% 3.2% 3.2% 6.4% 17.0% 6.6% 3.8% 9.2% 9.4% 32.9% There- after
Slide 15: Stable Construction Income that Drives Brand Recognition and Opportunities
2) Stable Construction Income that Drives Brand Recognition and Opportunities
Slide 16: Building relationships and credibility
Building relationships and credibility 3) DEVELOPMENT PIPELINE Extensive Experience Developing >$1.4B of Properties Examples Smith’s Landing Blacksburg, VA Mandarin Oriental Hotel, Washington DC Hampton University Proton Therapy Institute 2900 K Street, Washington DC The Swedish Embassy, Washington
Slide 17: Long Track Record of Successful Public-Private Partnerships
>20 partnerships Unique competitive advantage 3) DEVELOPMENT PIPELINE Long Track Record of Successful Public-Private Partnerships
Slide 18: Our Identified Pipeline – Status Today
Property Location Property Type Estimated Cost Stabilized Quarter 3) DEVELOPMENT PIPELINE Our Identified Pipeline – Status Today 4525 Main Street Virginia Beach, VA Office $ 50,000 1Q 2016 Encore Apartments Virginia Beach, VA Multifamily 34,000 1Q 2016 Whetstone Apartments Durham, NC Multifamily 28,
Slide 19: Pipelines Drive Shareholder Value Creation
$ in thousands Estimated Cost Estimated Stabilized NOI Estimated Return on Cost Projected Value Spread The Company’s Estimated Equity Creation Excluding JV Ownership Identified Pipeline $ 139,000 $ 11,400 8.20% 125 bps $ 23,903 Next Generation Pipeline $ 150,000 $ 12,400 8.27% 150 bps $ 33,251 Liber
Slide 20: Execute on Strategic and Opportunistic Acquisitions
4) ACQUISITION STRATEGY Execute on Strategic and Opportunistic Acquisitions • Properties located within or adjacent to our Mid-Atlantic footprint • Strong occupancy and stable cash flow • Credit-quality tenants • Smooth lease rollover with long-term anchor tenants • Seller interested in exchanging e
Slide 21: First Quarter 2014 Highlights
FINANCIAL HIGHLIGHTS First Quarter 2014 Highlights Financial • Funds From Operations (“FFO”) of $6.5 million, or $0.20 per diluted share. • Core FFO of $7.1 million, or $0.22 per diluted share. • Occupancy increased slightly to 94.5%, compared to 94.4% as of December 31, 2013. • Cash dividend of $0.
Slide 22: Track Record of Financial Results
3Q13 4Q13 1Q14 FINANCIAL HIGHLIGHTS Track Record of Financial Results FFO $ 5,185 $6,652 $6,475 FFO per share 0.16 0.21 0.20 Core FFO $ 6,554 $7,098 $7,065 Core FFO per share 0.20 0.22 0.22 AFFO $ 6,358 $6,000 $6,187 AFFO per share 0.20 0.19 0.19 $ in thousands, except per share
Slide 23: Debt Maturity
FINANCIAL HIGHLIGHTS Debt Maturity $ in thousands As of 3/31/14 Interest Rate Cap Agreements At or Below 1.50% Effective Date Maturity Date Strike Rate Notional Amount May 31, 2012 May 29, 2015 1.09% $9,068 September 1, 2013 March 1, 2016 1.50% 40,000 October 4, 2013 April 1, 2016 1.50% 18,500 March
Slide 24: 2014 Outlook
Current Parameters Previous Parameters As of May 13, 2014 As of February 20, 2014 FINANCIAL HIGHLIGHTS 2014 Outlook (1Q14 Earnings Release) (4Q13 Earnings Release) Total Core FFO (excluding the impact from non-stabilized projects) In-line with full-year 2013 FFO In-line with full-year 2013 FFO Non-s
Slide 25: REITWeek: NAREIT's Investor Forum
REITWeek: NAREIT’s Investor Forum June 2014
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