Ah Realty Trust, Inc. · NYSE:AHRT
Ah Realty Trust — Armada Hoffler Properties — Earnings Presentation (February 2019)
15 slides from Ah Realty Trust's earnings presentation, Feb 7, 2019
Slide 1: CLICK TO EDIT MASTER TITLE STYLE
CLICK TO EDIT MASTER TITLE STYLE 1
Slide 2: Table of Contents
TABLE OF CONTENTS 2 PAGE SECTION 03 Forward Looking Statements 04 2019 Outlook & Assumptions 05 Evolving Portfolio NOI Composition 06 NOI Contribution by Location 07 Projects Under Development 08 Mezzanine Investment Program 09 General Contracting and Real Estate Services 10 Normalized FFO Component
Slide 3: Forward Looking Statements
FORWARD LOOKING STATEMENTS 3 This presentation 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 Company makes sta
Slide 4: 2019 Outlook & Assumptions
2019 OUTLOOK & ASSUMPTIONS 4 LOW HIGH Total NOI $93.7M $94.6M Construction Segment Gross Profit $4.9M $5.7M Mezzanine Interest Income (Net of Interest Expense)(1) $16.0M $16.5M G&A Expenses $10.8M $11.5M Interest Expense (Net of Mezzanine Interest Expense) $25.5M $26.5M Normalized FFO Per Diluted Sh
Slide 5: Evolving Portfolio GAAP NOI Composition
EVOLVING PORTFOLIO GAAP NOI COMPOSITION 5 2019 GUIDANCE FULLY PORTFOLIO COMPOSITION 2018 MIDPOINT STABILIZED(1) RETAIL $40M $42M $46M ENTERTAINMENT & MIXED-USE RETAIL $10M $11M $13M MULTIFAMILY $15M $23M $32M OFFICE $13M $18M $29M TOTAL $78M $94M $120M Fully stabilized portfolio expected to bring ov
Slide 6: NOI Contribution by Location
NOI CONTRIBUTION BY LOCATION 6 Other VA(1) Town Center of 23% Virginia Beach Town Center of 29% Virginia Beach 42% Other VA(1) 50% MD 18% Other 2% NC 18% NC SC 8% 10% PROJECTED PORTFOLIO (2) 24 properties2013 61 propertiesFULLY STABILIZED (1) Excludes properties in Town Center of Virginia Beach (2)
Slide 7: Projects Under Development
PROJECTS UNDER DEVELOPMENT 7 DEVELOPMENT PRODUCT EXPECTED SIZE DELIVERY(2) INVESTMENT(2) PROJECTS(1) TYPE STABILIZATION(2) 1405 Point(3)(4) Multifamily 289 units 1Q18 4Q18 $99M Baltimore, MD One City Center(6) Office 153,000 sf 3Q18 2Q19 $46M Durham, NC Premier Apartments & Retail Mixed-Use 131 unit
Slide 8: Mezzanine Investment Program
MEZZANINE INVESTMENT PROGRAM 8 PROJECTED PROJECTED PROJECTED TOTAL PROJECTED PRODUCT PRINCIPAL TOTAL PROJECTED PROJECT LOCATION TOTAL GROSS INTEREST CONSTRUCTION TYPE MEZZANINE AHH INCOME (3) (2)(3) INCOME(3)(4) FEES(3) COST FINANCING(3) Intend to Exercise Discounted Purchase Option 1405 Point Multi
Slide 9: General Contracting and Real Estate Services
GENERAL CONTRACTING AND REAL ESTATE SERVICES 9 2018 2019 Guidance Midpoint Third-Party Construction and Development $2.7M $5.3M Distribution Center Build to Suit Sale Profit-Sold Dec. 2018 $3.4M - Annapolis Junction Option Sale Profit $0.5M $4.5M Total $6.6M $9.8M Third-Party Construction Backlog As
Slide 10: Normalized FFO Components
NORMALIZED FFO COMPONENTS 10 2018 2019 Guidance Midpoint Property FFO(1) $62.4M $68.5M Construction/Build to Suit Net Profit(2) $6.1M $5.3M Annapolis Junction Purchase Option Sale $0.5M $4.5M Mezzanine Interest Income (Net of Interest Expense) $7.0M $11.8M NFFO/Share $1.03 $1.14 CONTRIBUTION TO NFFO
Slide 11: Balance Sheet Targets
BALANCE SHEET TARGETS 11 $ in millions 10.0x 8.0x 8.0x 7.4x 7.3x 7.1x 7.3x 6.9x 6.8x 7.0x 6.8x 6.3x 6.6x 6.6x 6.5x 6.0x 5.8x 6.1x 5.9x 6.0x 5.3x 4.0x 2.0x 0.0x 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 1 2Q18 1 3Q18 1 4Q18 2 Debt/Annualized EBITDA Core Debt/Annualized Core EBITDA 2019 Capital Sources Timing $ S
Slide 12: Debt Maturities
DEBT MATURITIES 12 $ in millions $250 CONSTRUCTION $200 UNSECURED LINE OF CREDIT $150 UNSECURED TERM LOAN $100 SECURED $50 $0 2019¹ 2020 2021 2022 2023 2024 and thereafter Weighted Average Maturity ~6.5 Years (1) North Point I loan paid off January 2019 Solis Interlock
Slide 13: Core Operating Portfolio Occupancy
13 CORE OPERATING PORTFOLIO OCCUPANCY(1) One City Center 100% 95% 90% 85% 80% 75% 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 70% 2 0 1 9 65% 60% 55% 50% (1) 2013 through 2018 occupancy as of year end and 2019 projected 12/31
Slide 14: 2019 Mezzanine Investment Guidance
2019 MEZZANINE INVESTMENT GUIDANCE 14 TOTAL 2019 PROJECTED PROJECT INTEREST RATE PROJECTED PAYOFF MIDPOINT AHH INCOME Intend to Exercise Discounted Purchase Option 1405 Point 8% 2Q 2019 $0.6M Nexton Square 10-15% 2Q 2020 $1.4M Short-Term Investments Annapolis Junction 10% 4Q 2019 $3.0M Annapolis Jun
Slide 15: 2019 Outlook & Assumptions
2019 OUTLOOK & ASSUMPTIONS 15 LOW HIGH Total NOI $93.7M $94.6M Construction Segment Gross Profit $4.9M $5.7M Mezzanine Interest Income (Net of Interest Expense)(1) $16.0M $16.5M G&A Expenses $10.8M $11.5M Interest Expense (Net of Mezzanine Interest Expense) $25.5M $26.5M Normalized FFO Per Diluted S
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