Slide 1: 4Q22 Financial Supplemental Package
1 4Q22 FINANCIAL SUPPLEMENTAL PACKAGE ………………………………. Harbor Point in Baltimore, MD
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 14, 2023, which has been furnished as Exhibit 99.1 to our Form 8-K furnished on February 14, 2023. 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 income attributable to common stockholders and OP Unit holders of $11.5 million, or $0.13 per diluted share, for the quarter ended December 31, 2022 compared to $0.4 million, or less than $0.01 per diluted share, for the quarter ended December 31, 2021. • Net income attributable t
Slide 5: 2023 Outlook & Assumptions
5 2023 OUTLOOK & ASSUMPTIONS OUTLOOK(1) LOW HIGH PORTFOLIO NOI $157.4M $158.4M CONSTRUCTION SEGMENT PROFIT $11.8M $12.8M G&A EXPENSES $16.7M $17.3M INTEREST INCOME $12.8M $13.4M INTEREST EXPENSE(2) $45.4M $46.1M NORMALIZED FFO PER DILUTED SHARE $1.23 $1.27 GUIDANCE ASSUMPTIONS (1) See appendix for d
Slide 6: Summary Information
6 SUMMARY INFORMATION $ IN THOUSANDS, EXCEPT PER SHARE (1) As of close of market on 12/30/2022. (2) Excludes GAAP adjustments. (3) See appendix for definitions. (4) Total occupancy weighted by annualized base rent. Three Months Ended OPERATIONAL METRICS 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Net I
Slide 7: Summary Income Statement
7 SUMMARY INCOME STATEMENT $ IN THOUSANDS, EXCEPT PER SHARE Three Months Ended Year Ended 12/31/2022 12/31/2021 12/31/2022 12/31/2021 Revenues (Unaudited) Rental Revenues $55,692 $49,461 $219,294 $192,140 General Contracting Revenues 95,912 20,463 234,859 91,936 Total Revenues 151,604 69,924 454,153
Slide 8: Summary Balance Sheet
8 SUMMARY BALANCE SHEET $ IN THOUSANDS 12/31/2022 12/31/2021 Assets (Unaudited) Real Estate Investments: Income Producing Property $1,884,214 $1,658,609 Held for Development 6,294 6,294 Construction in Progress 53,067 72,535 Accumulated Depreciation (329,963) (285,814) Net Real Estate Investments 1,
Slide 9: FFO, Normalized FFO & AFFO
9 FFO, NORMALIZED FFO & AFFO(1) $ IN THOUSANDS, EXCEPT PER SHARE (1) See definitions in appendix. (2) Adjusted for the depreciation attributable to noncontrolling interests in consolidated investments. (3) Excludes gain/loss attributable to noncontrolling interests in consolidated investments and th
Slide 10: Net Asset Value Component Data
10 NET ASSET VALUE COMPONENT DATA $ AND SHARES/UNITS IN THOUSANDS (1) Excludes expenses associated with the Company’s in-house asset management division of $0.7M for the 3 months ended 12/31/2022. (2) Includes 100% of joint ventures. (3) Includes leases for spaces occupied by the Company which are e
Slide 11: Stabilized Portfolio Summary
11 STABILIZED PORTFOLIO SUMMARY AS OF DECEMBER 31, 2022 SEE APPENDIX FOR FULL LIST OF PROPERTIES (1) See appendix for definitions and portfolio detail. COMMERCIAL PORTFOLIO Retail Properties # of Properties Net Rentable SF Average Age Occupied SF Occupancy(1) ABR(1) ABR per Occupied SF Town Center o
Slide 12: Same Store NOI by Segment
12 SAME STORE NOI BY SEGMENT $ IN THOUSANDS (RECONCILIATION TO GAAP LOCATED IN APPENDIX) (1) Excludes expenses associated with the Company’s in-house asset management division of $0.7M for each of the 3 months ended 12/31/2022 & 12/31/2021, and $2.8M & $2.7M for the years ended 12/31/2022 & 12/31/20
Slide 13: Debt to Adjusted EBITDA
13 DEBT TO ADJUSTED EBITDA $ IN THOUSANDS SEE APPENDIX FOR DEFINITIONS, CALCULATIONS, AND RECONCILIATIONS (1) Includes income and debt related to development, mezzanine, construction, and other ancillary activities outside of our stabilized portfolio. (2) Total notes payable less GAAP adjustments, c
Slide 14: Debt Management
14 DEBT MANAGEMENT $ IN THOUSANDS (1) Includes impact of non-designated interest rate caps. (2) Excludes debt subject to interest rate swap locks. (3) Includes debt subject to interest rate swap locks. (4) Excludes GAAP adjustments. (5) Represents the weighted average interest rate of the portfolio,
Slide 15: Outstanding Debt
15 OUTSTANDING DEBT $ IN THOUSANDS (1) Excludes non-designated interest rate caps. (2) Subject to a rate floor. (3) Includes debt subject to interest rate swap locks. (4) Includes debt subject to designated interest rate caps. Debt Stated Rate Effective Rate of as 12/31/2022(1) Maturity Date 2023 20
Slide 16: Capitalization & Financial Ratios
16 CAPITALIZATION & FINANCIAL RATIOS $ IN THOUSANDS, EXCEPT PER SHARE AS OF DECEMBER 31, 2022 (1) As of close of market on 12/30/22. (2) Reflects quarterly Total Adjusted EBITDA divided by total quarterly interest expense and required principal repayment. (3) Reflects quarterly Total Adjusted EBITDA
Slide 17: Active Development Projects
17 ACTIVE DEVELOPMENT PROJECTS $ IN THOUSANDS (1) Represents estimates that may change as the development and redevelopment process proceeds. (2) First fully-stabilized quarter. See same store definition in appendix. (3) Majority interest in joint venture with preferred return. (4) The Company curre
Slide 18: Preferred Investments/Mezzanine
18 PREFERRED INVESTMENTS/MEZZANINE $ IN THOUSANDS AS OF DECEMBER 31, 2022 (1) Represents estimates that may change as the development process proceeds. (2) Includes amortization of fees. (3) Preferred equity with economic terms and accounting consistent with a loan receivable. (4) Project sold 12/31
Slide 19: Third-Party Construction
19 THIRD-PARTY CONSTRUCTION $ IN THOUSANDS Boulders Lakeview Apartments North Chesterfield, VA Q4 2022 Q3 2022 Q2 2022 Q1 2022 Trailing 4 Quarters Revenue $95,912 $69,024 $45,273 $24,650 $234,859 Expense (93,667) (66,252) (43,418) (23,821) (227,158) Gross Profit $2,245 $2,772 $1,855 $829 $7,701 Oper
Slide 20: Acquisitions & Dispositions
20 ACQUISITIONS & DISPOSITIONS $ IN THOUSANDS (1) Represents 100% of property value of which the Company owns a 90% economic interest. (2) Anchor tenant vacant at time of sale. ACQUISITIONS Properties Location Square Feet/Units Purchase Price Cash Cap Rate Purchase Date Anchor Tenants 2022 606,181 /
Slide 21: Top Tenants by ABR
21 TOP 20 TENANTS BY ABR(1) $ IN THOUSANDS AS OF DECEMBER 31, 2022 (1) Excludes leases from the development and redevelopment properties that have been delivered, but not yet stabilized. (2) Per public sources. Commercial Portfolio Tenant Investment Grade Rating(2) Number of Leases Lease Expiration
Slide 22: Lease Summary
22 LEASE SUMMARY (1) Excludes leases from properties in development. OFFICE Renewals For GAAP and Cash Releasing Spread Calc: 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 2022 3 200
Slide 23: Lease Expirations
23 LEASE EXPIRATIONS(1) AS OF DECEMBER 31, 2022 (1) Excludes leases from properties in development and delivered, but not yet stabilized. OFFICE Year Leases Expiring Square Footage Expiring % Portfolio Net Rentable Square Feet ABR % of Portfolio ABR Available - 68,766 3.3% -$ - M-T-M 2 1,623 0.1% 63
Slide 24: Appendix: Definitions & Reconciliations
24Town Center Virginia Beach, VA APPENDIX DEFINITIONS & RECONCILIATIONS
Slide 25: Definitions: Annualized Base Rent and AFFO
25 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 26: Definitions: Net Operating Income
26 NET OPERATING INCOME: We calculate Net Operating Income (“NOI”) as property revenues (base rent, expense reimbursements, termination fees and other revenue) less property expenses (rental expenses and real estate taxes). Other REITs may use different methodologies for calculating NOI, and accordi
Slide 27: Definitions: Occupancy and Normalized FFO
27 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 28: Definitions: Stabilized Property Debt and Adjusted EBITDA
28 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 29: Property Portfolio
29 PROPERTY PORTFOLIO AS OF DECEMBER 31, 2022 (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 Occupi
Slide 30: Property Portfolio Cont.
30 PROPERTY PORTFOLIO CONT. AS OF DECEMBER 31, 2022 (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 55,390 square feet at these two properties at an ABR of $1.8M, or $33.32 per leased
Slide 31: Reconciliation of Debt & EBITDA
31 $ IN THOUSANDS RECONCILIATION OF DEBT & EBITDA (1) Excludes GAAP adjustments. Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Property Net Operating Income $37,689 $35,542 $36,702 $36,562 Property Other Income (Expense), Net (120) (30) (190) 104 Amortization of Right of Use Assets (27
Slide 32: Capital Expenditures
32 QUARTER TO DATE(1) $ IN THOUSANDS AS OF DECEMBER 31, 2022 CAPITAL EXPENDITURES (1) Excludes activity related to held for sale, acquired and/or disposed properties. (2) Represents recurring capital expenditures. YEAR TO DATE(1) Leasing Commissions Lease Incentive Tenant Improvements Land Improveme
Slide 33: Reconciliation to Property Portfolio NOI
33 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 2022 2021 2022 2021 Office Same Store Rental revenues $10,845 $10,213 $41,705 $40,965 Property expenses 4,107 3
Slide 34: Reconciliation to GAAP Net Income
34 RECONCILIATION TO GAAP NET INCOME $ IN THOUSANDS Office Retail Multifamily Total Rental Properties General Contracting & Real Estate Services Total Segment revenues 20,012$ 22,146$ 13,534$ 55,692$ 95,912$ 151,604$ Segment expenses 7,125 5,673 5,205 18,003 93,667 111,670 Net operating income 12,88
Slide 35: Reconciliation of Net Income to Adjusted EBITDA
35 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA $ IN THOUSANDS Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Net income attributable to common stockholders and OP unitholders $11,517 $33,899 $27,752 $9,289 Excluding: Depreciation and amortization 18,109 17,527 18,781 18,557 Loss (ga