Ah Realty Trust, Inc. · NYSE:AHRT
Ah Realty Trust — Armada Hoffler Properties — Q1 2020 Earnings Presentation
33 slides from Ah Realty Trust's earnings presentation, Apr 30, 2020
Slide 1: Armada Hoffler
4 ARMADA HOFFLER i inoretes
Slide 2: Table of Contents
TABLE OF CONTENTS 2 03 Forward Looking Statements 04 Corporate Profile 05 Highlights 06 Summary Information 07 Net Asset Value Component Data 08 Summary Balance Sheet 09 Summary Income Statement 10 FFO, Normalized FFO & Adjusted FFO 11 Outstanding Debt 12 Debt Information 13 Core Debt to Core EBITDA
Slide 3: Forward-Looking Statements
3 FORWARD - LOOKING STATEMENTS This Supplemental Financial Package should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated April 30, 2020, which has been furnished as Exhibit 99.1 to our Form 8-K filed on April 30, 2020. The C
Slide 4: Corporate Profile
CORPORATE PROFILE 4 Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties lo
Slide 5: Highlights
HIGHLIGHTS 5 • Net income attributable to common stockholders and OP Unit holders of $8.2 million, or $0.11 per diluted share, compared to $6.5 million, or $0.10 per diluted share, for the three months ended March 31, 2019. • Funds from operations attributable to common stockholders and OP Unit hold
Slide 6: Summary Information
SUMMARY INFORMATION 6 $ IN THOUSANDS, EXCEPT PER SHARE DATE Three months ended 3/31/2020 12/31/2019 9/30/2019 6/30/2019 3/31/2019 OPERATIONAL METRICS Net income attributable to common stockholders and OP unit holders $8,160 $7,215 $9,869 $5,992 $6,514 Net income attributable to common stockholders a
Slide 7: Net Asset Value Component Data
NET ASSET VALUE COMPONENT DATA 7 $ IN THOUSANDS Stabilized Portfolio NOI (Cash)(1) Third-Party General Contracting and Real Estate Services Three months ended Annualized Trailing 12 Months 3/31/2020 3/31/2020 General Contracting Gross Profit $5,289 Stabilized Virginia Beach (VB) Town Center(1) Offic
Slide 8: Summary Balance Sheet
SUMMARY BALANCE SHEET 8 $ IN THOUSANDS As of 3/31/2020 12/31/2019 Assets (Unaudited) Real estate investments: Income producing property $1,465,882 $1,460,723 Held for development 13,607 5,000 Construction in progress 155,672 140,601 Accumulated depreciation (235,249) (224,738) Net real estate invest
Slide 9: Summary Income Statement
SUMMARY INCOME STATEMENT 9 IN THOUSANDS, EXCEPT PER SHARE DATA Three months ended 3/31/2020 3/31/2019 Revenues (Unaudited) Rental revenues $42,289 $30,909 General contracting and real estate services revenues 47,268 17,036 Total Revenues 89,557 47,945 Expenses Rental expenses 9,375 6,725 Real estate
Slide 10: FFO, Normalized FFO & AFFO
(1) FFO, NORMALIZED FFO & AFFO 10 $ IN THOUSANDS, EXCEPT PER SHARE DATA Three months ended (Unaudited) 3/31/2020 12/31/2019 9/30/2019 6/30/2019 3/31/2019 Funds From Operations Net income attributable to AHH and OP unit holders $8,160 $7,215 $9,869 $5,992 $6,514 Earnings per diluted share $0.11 $0.09
Slide 11: Outstanding Debt
OUTSTANDING DEBT 11 $ IN THOUSANDS Debt Maturities & Principal Payments Effective Rate as Outstanding as of Debt Stated Rate of 3/31/2020 Maturity Date 2020 2021 2022 2023 2024 Thereafter 3/31/2020 Secured Notes Payable - Core Debt Hoffler Place L+3.24% 4.23% Jan-2021 - $29,589 $29,589 Southgate Squ
Slide 12: Debt Information
DEBT INFORMATION 12 $ IN THOUSANDS Debt Maturities $350,000 5.0% $300,000 4.0% $250,000 3.6% 3.4% 3.4% 3.0% $200,000 2.7% 2.6% $150,000 2.0% $100,000 1.0% $50,000 $0 0.0% 2020 2021 2022 2023 2024 Thereafter Fixed-Rate Debt Variable-Rate Debt Weighted Average Interest Rate Total Debt Composition Inte
Slide 13: Core Debt to Core EBITDA
(1) CORE DEBT TO CORE EBITDA 13 $ IN THOUSANDS Three months ended 3/31/2020 12/31/2019 9/30/2019 6/30/2019 3/31/2019 Net income attributable to common stockholders and OP unit holders $8,160 $7,215 $9,869 $5,992 $6,514 Excluding: Depreciation and amortization(2) 14,092 15,285 15,057 13,145 10,129 Am
Slide 14: Capitalization & Financial Ratios
CAPITALIZATION & FINANCIAL RATIOS 14 $ IN THOUSANDS AS OF MARCH 31, 2020 Debt % of Total Principal Balance Unsecured credit facility 15% $150,000 Unsecured term loans 20% 205,000 Mortgages payable 65% 661,293 Total debt $1,016,293 Liquidation Value Preferred Equity Shares Per Share Total Liquidation
Slide 15: Property Portfolio
PROPERTY PORTFOLIO 15 AS OF MARCH 31, 2020 Net Rentable Square Feet (RSF)(1) Development/ Development/ Town Unencumbered Redevelopment Core Redevelopment ABR per Property Anchor Tenant(s) Location Center ABR Year Built Core Properties Properties Total Occupancy(2) Leased(2) ABR(3) Leased SF(3) Retai
Slide 16: Property Portfolio Cont.
PROPERTY PORTFOLIO CONT. 16 AS OF MARCH 31, 2020 Net Rentable Square Feet (RSF)(1) Town Unencumbered Core Development Core Development Office Properties Anchor Tenant Location Center ABR Year Built Properties Properties Total Occupancy(2) Leased(2) ABR(3) ABR per Leased SF(3) 4525 Main Street Clark
Slide 17: Development & Redevelopment Pipeline
DEVELOPMENT & REDEVELOPMENT PIPELINE 17 $ IN THOUSANDS Schedule(1) Property (1) % Leased or Construction Initial Stabilized Estimated Loan Cost to Estimated (2) (1) AHH Ownership % Anchor Tenants Projects Type LOI Start Occupancy Operation Cost Commitment Date Under Development Summit Place (Meeting
Slide 18: Mezzanine Investments
MEZZANINE INVESTMENTS 18 $ IN THOUSANDS Schedule(1) Principal Property % Leased Initial Mezzanine Mezzanine Type Estimated(1) or LOI Occupancy Loan Maturity Interest Rate Financing Interest QTD Investments with Discounted Purchase Options Nexton Square-Phase I Mixed-use 118,000 sf 99% 3Q19 4Q20 10%
Slide 19: Acquisitions & Dispositions
ACQUISITIONS & DISPOSITIONS 19 $ IN THOUSANDS ACQUISITIONS Reinvested 1031 $ Value of Cash Cap Properties Location Square Feet Purchase Price(1) Proceeds OP Units/Stock(2) Rate Purchase Date Anchor Tenants Thames Street Wharf Baltimore, MD 263,426 $101,000 $ - $ - 7.1% 2Q19 Morgan Stanley, JHU Medic
Slide 20: Construction Business Summary
CONSTRUCTION BUSINESS SUMMARY 20 $ IN THOUSANDS Total Contract Work in Place as Estimated Date Highlighted Projects Location Value of 3/31/2020 Backlog of Completion The Interlock Atlanta, GA $93,671 $60,692 $32,979 3Q 2020 Solis Apartments at Interlock Atlanta, GA 64,097 23,840 40,257 1Q 2021 Bould
Slide 21: Same Store NOI by Segment
SAME STORE NOI BY SEGMENT 21 $ IN THOUSANDS (RECONCILIATION TO GAAP LOCATED IN APPENDIX ON PG. 33) Three months ended 3/31/2020 3/31/2019 $ Change % Change Office(1) (Unaudited) Revenue $5,303 $5,326 ($23) -0.4% Rental Expenses (2) 1,402 1,346 56 4.2% Real Estate Taxes 554 513 41 8.0% Net Operating
Slide 22: Top Tenants by ABR
(1) TOP 10 TENANTS BY ABR 22 $ IN THOUSANDS AS OF MARCH 31, 2020 Office Portfolio Number Lease Annualized Base % of Office Portfolio % of Total Portfolio Tenant of Leases Expiration Rent Annualized Base Rent Annualized Base Rent Morgan Stanley 2 2023 ; 2027 $ 5,879 16.8% 4.2% Clark Nexsen 1 2029 2,6
Slide 23: Lease Summary
LEASE SUMMARY 23 OFFICE 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 MARCH 31, 2020 % Portfolio Net % of Portfolio Annualized Base Number of Leases Square Footage of Rentable Square Annualized Base Annualized Base Rent per Leased Year Expiring Leases Expiring Feet Rent Rent Square Foot Available - 44,302 3.4% $ - - $ - M-T-M 2 0 - 2,
Slide 25: Retail Lease Expirations
RETAIL LEASE EXPIRATIONS 25 AS OF MARCH 31, 2020 % Portfolio Net % of Portfolio Annualized Base Number of Leases Square Footage of Rentable Square Annualized Base Annualized Base Rent per Leased Year Expiring Leases Expiring(1) Feet Rent(1) Rent Square Foot Available - 172,605 4.1% $ - - $ - M-T-M 5
Slide 26: Appendix: Definitions & Reconciliations
26 APPENDIX DEFINITIONS & RECONCILIATIONS Town Center Virginia Beach, VA
Slide 27: Definitions
DEFINITIONS 27 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 28: Definitions
DEFINITIONS 28 ADJUSTED FUNDS FROM OPERATIONS: We calculate Adjusted Funds From Operations (“AFFO”) as Normalized FFO adjusted for the impact of non-cash stock compensation, tenant improvement, leasing commission and leasing incentive costs associated with second generation rental space, capital exp
Slide 29: Definitions
DEFINITIONS 29 SAME STORE PORTFOLIO: We define same store properties as those that we owned and operated and that were stabilized for the entirety of both periods compared. We generally consider a property to be stabilized upon the earlier of: (i) the quarter after the property reaches 80% occupancy
Slide 30: Same Store vs. Non-Same Store Properties
SAME STORE VS. NON - SAME STORE PROPERTIES 30 Three Months Ended Three Months Ended 3/31/2020 to 2019 3/31/2020 to 2019 Same Non-Same Same Non-Same Store Store Store Store Retail Properties Retail Properties (Continued) 249 Central Park Retail X Red Mill Commons X Alexander Pointe X Renaissance Squa
Slide 31: Reconciliation to Property Portfolio NOI
RECONCILIATION TO PROPERTY PORTFOLIO NOI 31 $ IN THOUSANDS Three months ended 3/31 2020 2019 Office Same Store(1) Rental revenues $5,303 $5,326 Property expenses 1,956 1,859 NOI 3,347 3,467 Non-Same Store NOI(2) 3,153 77 Segment NOI $6,500 $3,544 Retail Same Store(1) Rental revenues $15,909 $15,587
Slide 32: Reconciliation to Property Portfolio NOI
RECONCILIATION TO PROPERTY PORTFOLIO NOI 32 $ IN THOUSANDS Three months ended 3/31/2020 Diversified Portfolio Office Retail Multifamily Total NOI - Cash Basis $2,912 $12,635 $4,994 $20,541 GAAP Adjustments 396 660 29 1,085 Elimination of intercompany rent (72) - - (72) NOI $3,236 $13,295 $5,023 $21,
Slide 33: Reconciliation to GAAP Net Income
RECONCILIATION TO GAAP NET INCOME 33 $ IN THOUSANDS Three months ended 3/31/2020 Total Rental General Contracting & Office Retail Multifamily Properties Real Estate Services Total Segment revenues $ 10,192 $ 20,411 $ 11,686 $ 42,289 $ 47,268 $ 89,557 Segment expenses 3,692 5,186 4,830 13,708 45,550
Armada Hoffler Properties — Q1 2020 Earnings Presentation on 6ix