UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 11, 2021
(Exact name of registrant as specified in its charter)
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Registrant’s telephone number, including area code: (757 ) 366-4000
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On February 11, 2021, Armada Hoffler Properties, Inc. (the “Company”) issued a press release announcing its financial position as of December 31, 2020, results of operations for the three and twelve months ended December 31, 2020, and other related information. Also on February 11, 2021, the Company made available on its website at www.ArmadaHoffler.com certain supplemental information concerning the Company’s financial results and operations for the three and twelve months ended December 31, 2020. Copies of such press release and supplemental information are furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.
In accordance with General Instructions B.2 and B.6 of Form 8-K, the information included in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Exchange Act or Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 7.01. Regulation FD Disclosure.
The disclosure contained in Item 2.02 is incorporated herein by reference.
On February 11, 2021, the Company made available a presentation regarding its 2021 full-year guidance, which is furnished as Exhibit 99.3 to this Current Report on Form 8-K.
In accordance with General Instructions B.2 and B.6 of Form 8-K, the information included in this Current Report on Form 8-K, including exhibits 99.1, 99.2, and 99.3 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Exchange Act or Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ARMADA HOFFLER PROPERTIES, INC. | ||||||||
| Date: February 11, 2021 | By: | /s/ Michael P. O'Hara | ||||||
Michael P. O'Hara | ||||||||
| Chief Financial Officer, Treasurer, and Secretary | ||||||||
Exhibit 99.1
 | PRESS RELEASE | |||||||
ARMADA HOFFLER PROPERTIES REPORTS FOURTH QUARTER AND FULL YEAR 2020 RESULTS
Net Income of $0.02 per Diluted Share for the Fourth Quarter
and $0.38 per Diluted Share for the Full Year
Normalized FFO of $0.25 per Diluted Share for the Fourth Quarter
and $1.10 per Diluted Share for the Full Year
Company Introduces 2021 Full-Year Normalized FFO Guidance of $0.98 to $1.02 per Diluted Share
Company Increases First Quarter 2021 Cash Dividend On Common Shares Over 36%
VIRGINIA BEACH, VA, February 11, 2021 – Armada Hoffler Properties, Inc. (NYSE: AHH) today announced its results for the quarter and year ended December 31, 2020 and provided an update on current events and the impact of COVID-19.
Highlights include:
•Net income attributable to common stockholders and OP Unit holders of $1.9 million, or $0.02 per diluted share, for the quarter ended December 31, 2020 compared to $7.2 million, or $0.09 per diluted share, for the quarter ended December 31, 2019. Net income attributable to common stockholders and OP Unit holders of $29.8 million, or $0.38 per diluted share, for the year ended December 31, 2020 compared to $29.6 million, or $0.41 per diluted share, for the year ended December 31, 2019.
•Funds from operations attributable to common stockholders and OP Unit holders ("FFO") of $19.5 million, or $0.25 per diluted share, for the quarter ended December 31, 2020 compared to $22.5 million, or $0.29 per diluted share, for the quarter ended December 31, 2019. FFO of $83.0 million, or $1.06 per diluted share, for the year ended December 31, 2020 compared to $80.0 million, or $1.10 per diluted share, for the year ended December 31, 2019.
•Normalized funds from operations attributable to common stockholders and OP Unit holders ("Normalized FFO") of $19.9 million, or $0.25 per diluted share, for the quarter ended December 31, 2020 compared to $22.9 million, or $0.30 per diluted share, for the quarter ended December 31, 2019. Normalized FFO of $86.2 million, or $1.10 per diluted share, for the year ended December 31, 2020 compared to Normalized FFO of $85.1 million, or $1.17 per diluted share, for the year ended December 31, 2019.
•Introduced 2021 full-year Normalized FFO guidance in the range of $0.98 to $1.02 per diluted share, as set forth in the separate presentation that can be found on the Investors page of the Company's website, ArmadaHoffler.com. Executive management of the Company will provide further details regarding its 2021 earnings guidance during today's webcast and conference call.
•Announced a first quarter cash dividend of $0.15 per common share, which is an increase of 36% over the prior quarter.
•Core operating property portfolio occupancy at 94.4% as of December 31, 2020 compared to 96.5% as of December 31, 2019.
•Formed a 50/50 joint venture that will develop and build T. Rowe Price's new 450,000 square foot global headquarters in Baltimore's Harbor Point. T. Rowe Price signed a 15-year lease and plans to relocate its
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downtown Baltimore operations to Harbor Point in the first half of 2024. In conjunction with the build-to-suit project, another joint venture will develop and build a new mixed-use facility with structured parking on a neighboring site to accommodate both existing and T. Rowe Price parking requirements.
•Renewed over 84% of commercial office and retail space under expiring leases during the fourth quarter. Including new leases, the Company leased over 222,000 square feet of commercial office and retail space.
•Collected 98% of portfolio rents for the fourth quarter, including 100% of office tenant rents, 99% of multifamily tenant rents, and 96% of retail tenant rents. Refer to pages 27-28 of the Supplemental Financial Package for further details.
•Agreed to a new $23 million preferred equity mezzanine loan for the Solis Nexton development project. Solis Nexton will be a new 320-unit Class A apartment community in Summerville, South Carolina located within walking distance of Nexton Square, the 127,000 square foot lifestyle center acquired by the Company in 2020.
•Reinstated and amended the Company’s two leases with Regal Cinemas to allow for continued occupancy by Regal Cinemas and to provide for additional density:
◦In Harrisonburg, Virginia, the potential for up to 228 conventional apartments and structured parking.
◦At the Virginia Beach Town Center, the ability to program significant additional mixed-use commercial space.
•Completed the acquisition of the Edison Apartments in downtown Richmond, Virginia in an off-market, OP Unit transaction.
•Completed the off-market acquisition of The Residences at Annapolis Junction, a 416-unit, Class A, LEED Gold certified mid-rise apartment community in Howard County, Maryland.
“Over the last few months, we’ve announced three new development projects, acquired two high-quality multifamily assets, made solid progress on backfilling Covid-related vacancies, and increased the dividend by over 36%. Most importantly, 2020 saw us maintain high occupancy portfolio wide and collect over 94% of scheduled rents since the beginning of the pandemic,” said Louis Haddad, President & CEO. “Our focus for 2021 now turns to executing our strategy to rebalance our portfolio and reposition the Company to improve earnings quality over the next several years, ultimately leading to long-term growth, value creation, and greater returns for all shareholders.”
Financial Results
Net income attributable to common stockholders and OP Unit holders for the fourth quarter of 2020 as compared to the fourth quarter of 2019 was negatively impacted by lower interest income from mezzanine lending activities, higher aggregate preferred stock dividends as a result of issuing additional preferred shares, and higher depreciation and amortization expense and was positively impacted by higher property operating income due to acquisitions and developments, higher construction segment gross profit, and lower interest expense.
Full year net income attributable to common stockholders and OP Unit holders as compared to 2019 was positively impacted by higher property operating income due to acquisitions and developments, higher construction segment gross profit, lower interest expense, higher gain on sale of properties, and lower mark-to-market losses on interest rate derivatives. Full year net income was negatively impacted by lower interest income from mezzanine lending activities, higher aggregate preferred stock dividends as a result of issuing additional preferred shares, lower tax benefit, and higher tenant bad debt (recorded as an adjustment to rental revenues) in the retail portfolio as a result of the COVID-19 pandemic.
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Operating Performance
At the end of the year, the Company’s retail, office, and multifamily core operating property portfolios were 94.7%, 97.0%, and 92.5% occupied, respectively.
Total third-party construction contract backlog was $71.3 million at the end of the year.
Balance Sheet and Financing Activity
As of December 31, 2020, the Company had $962.8 million of total debt outstanding, including $10.0 million outstanding under its revolving credit facility and $205.0 million outstanding under its senior unsecured term loan facility. Total debt outstanding excludes unamortized GAAP fair value adjustments and deferred financing costs. Approximately 60% of the Company’s debt had fixed interest rates or was subject to interest rate swaps as of December 31, 2020. After considering LIBOR and SOFR interest rate caps with strike prices at or below 184 basis points, 100% of the Company’s debt is now fixed or hedged.
Outlook
The Company is introducing its 2021 full-year Normalized FFO guidance in the range of $0.98 to $1.02 per diluted share, as set forth in the separate presentation that can be found on the Investors page of the Company's website, ArmadaHoffler.com. The following table outlines the Company's assumptions along with Normalized FFO per diluted share estimates for 2021. The Company's executive management will provide further details regarding its 2021 earnings guidance during today's webcast and conference call.
Full-year 2021 Guidance [1] | Expected Ranges | |||||||||||||
Total NOI | $116.3M | $117.3M | ||||||||||||
Construction Segment Gross Profit | $4.0M | $5.3M | ||||||||||||
G&A Expenses | $14.3M | $14.8M | ||||||||||||
| Mezzanine Interest Income | $17.7M | $18.1M | ||||||||||||
Interest Expense | $31.0M | $31.7M | ||||||||||||
Normalized FFO per diluted share [2] | $0.98 | $1.02 | ||||||||||||
[1] Includes the following assumptions:
•Acquisition of Delray Beach Whole Foods in the first quarter
•New $23M preferred equity mezzanine loan for Solis Nexton beginning 2Q21 (see slide 20 in the Guidance Presentation)
•Disposition of a Kroger-anchored shopping center in the second quarter for $5.5M
•Interest Expense is calculated based on Forward LIBOR Curve, which forecasts rates ending the year at 0.15%
•Opportunistic sale of common stock through the ATM program, resulting in a full year weighted average share count of 82.5M
[2] Normalized FFO excludes certain items, including debt extinguishment losses, acquisition, development and other pursuit costs, mark-to-market adjustments for interest rate derivatives, provision for unrealized credit losses, amortization of right-of-use assets attributable to finance leases, severance related costs, and other non-comparable items. See "Non-GAAP Financial Measures." The Company does not provide a reconciliation for its guidance range of Normalized FFO per diluted share to net income per diluted share, the most directly comparable forward-looking GAAP financial measure, because it is unable to provide a meaningful or accurate estimate of reconciling items and the information is not available without unreasonable effort as a result of the inherent difficulty of forecasting the timing and/or amounts of various items that would impact net income per diluted share. For the same reasons, the Company is unable to address the probable significance of the unavailable information and believes that providing a reconciliation for its guidance range of Normalized FFO per diluted share would imply a degree of precision for its forward-looking net income per diluted share that could be misleading to investors.
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Supplemental Financial Information
Further details regarding operating results, properties, and leasing statistics can be found in the Company’s supplemental financial package available on the Investors page at ArmadaHoffler.com.
Webcast and Conference Call
The Company will host a webcast and conference call on Thursday, February 11, 2021 at 8:30 a.m. Eastern Time to review financial results and discuss recent events. The live webcast will be available through the Investors page of the Company’s website, ArmadaHoffler.com. To participate in the call, please dial 877-407-3982 (domestic) or 201-493-6780 (international). A replay of the conference call will be available through Thursday, March 11, 2021 by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the pass code 13714009.
About Armada Hoffler Properties, Inc.
Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with over four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. Founded in 1979 by Daniel A. Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes.
Forward-Looking Statements
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties, and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These forward-looking statements may include comments relating to the current and future performance of the Company’s operating property portfolio, the Company’s development pipeline, the Company's mezzanine program, the Company’s construction and development business, including backlog and timing of deliveries, financing activities, as well as acquisitions, dispositions and the Company’s financial outlook, guidance and expectations. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading "Risk Factors" included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, and the other documents filed by the Company with the Securities and Exchange Commission (the "SEC") from time to time, including the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020. The Company’s actual future results and trends may differ materially from expectations depending on a variety of factors discussed in the Company’s filings with the the SEC. These factors include, without limitation: (a) the impact of the coronavirus (COVID-19) pandemic on macroeconomic conditions and economic conditions in the markets in which the Company operates, including, among others: (i) disruptions in, or a lack of access to, the capital markets or disruptions in the Company’s ability to borrow amounts subject to existing construction loan commitments; (ii) adverse impacts to the Company’s tenants’ and other third parties’ businesses and financial condition that adversely affect the ability and willingness of the Company’s tenants and other third parties to satisfy their rent and other obligations to the Company, including deferred rent; (iii) the ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration of the leases or to re-lease the Company’s properties on the same or better terms in the event of nonrenewal or early termination of existing leases; and (iv) federal, state and local government initiatives to mitigate the impact of the COVID-19 pandemic, including additional restrictions on business activities, shelter-in place orders and other restrictions, and the timing and amount of economic stimulus or other initiatives; (b) the Company’s ability to continue construction on development and construction projects, in each case on the timeframes and on terms currently anticipated; (c) the Company’s ability to accurately assess and predict the impact of the COVID-19 pandemic on its results of operations, financial condition, dividend policy, acquisition and disposition activities and growth opportunities; and (d) the Company’s ability to maintain compliance with the covenants under its existing debt agreements or to obtain modifications to such covenants from the applicable lenders. The Company expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained
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herein, to reflect any change in the Company's expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required by applicable law.
Non-GAAP Financial Measures
The Company calculates FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts ("Nareit"). Nareit defines FFO as net income (loss) (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains or losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.
FFO is a supplemental non-GAAP financial measure. The Company uses FFO as a supplemental performance measure because it believes that FFO is beneficial to investors as a starting point in measuring the Company’s operational performance. Specifically, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, which do not relate to or are not indicative of operating performance, FFO provides a performance measure that, when compared period-over-period, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare the Company’s operating performance with that of other REITs.
However, because FFO excludes depreciation and amortization and captures neither the changes in the value of the Company’s properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of the Company’s properties, all of which have real economic effects and could materially impact the Company’s results from operations, the utility of FFO as a measure of the Company’s performance is limited. In addition, other equity REITs may not calculate FFO in accordance with the Nareit definition as the Company does, and, accordingly, the Company’s FFO may not be comparable to such other REITs’ FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of the Company’s performance. FFO should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or service indebtedness. Also, FFO should not be used as a supplement to or substitute for cash flow from operating activities computed in accordance with GAAP.
Management also believes that the computation of FFO in accordance with Nareit’s definition includes certain items that are not indicative of the results provided by the Company’s operating property portfolio and affect the comparability of the Company’s period-over-period performance. Accordingly, management believes that Normalized FFO is a more useful performance measure that excludes certain items, including but not limited to, acquisition, development and other pursuit costs, gains or losses from the early extinguishment of debt, impairment of intangible assets and liabilities, mark-to-market adjustments for interest rate derivatives, provision for unrealized credit losses, amortization of right-of-use assets attributable to finance leases, severance related costs, and other non-comparable items.
For reference, as an aid in understanding the Company’s computation of FFO and Normalized FFO, a reconciliation of net income calculated in accordance with GAAP to FFO and Normalized FFO has been included at the end of this release.
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ARMADA HOFFLER PROPERTIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
| December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Real estate investments: | |||||||||||
| Income producing property | $ | 1,680,943 | $ | 1,460,723 | |||||||
| Held for development | 13,607 | 5,000 | |||||||||
| Construction in progress | 63,367 | 140,601 | |||||||||
| 1,757,917 | 1,606,324 | ||||||||||
| Accumulated depreciation | (253,965) | (224,738) | |||||||||
| Net real estate investments | 1,503,952 | 1,381,586 | |||||||||
| Real estate investments held for sale | 1,165 | 1,460 | |||||||||
| Cash and cash equivalents | 40,998 | 39,232 | |||||||||
| Restricted cash | 9,432 | 4,347 | |||||||||
| Accounts receivable, net | 28,259 | 23,470 | |||||||||
| Notes receivable, net | 135,432 | 159,371 | |||||||||
| Construction receivables, including retentions, net | 38,735 | 36,361 | |||||||||
| Construction contract costs and estimated earnings in excess of billings | 138 | 249 | |||||||||
| Equity method investments | 1,078 | — | |||||||||
| Operating lease right-of-use assets | 32,760 | 33,088 | |||||||||
| Finance lease right-of-use assets | 23,544 | 24,130 | |||||||||
| Acquired lease intangible assets | 58,154 | 68,702 | |||||||||
| Other assets | 43,324 | 32,901 | |||||||||
| Total Assets | $ | 1,916,971 | $ | 1,804,897 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Indebtedness, net | $ | 963,845 | $ | 950,537 | |||||||
| Accounts payable and accrued liabilities | 23,900 | 17,803 | |||||||||
| Construction payables, including retentions | 49,821 | 53,382 | |||||||||
| Billings in excess of construction contract costs and estimated earnings | 6,088 | 5,306 | |||||||||
| Operating lease liabilities | 41,659 | 41,474 | |||||||||
| Finance lease liabilities | 17,954 | 17,903 | |||||||||
| Other liabilities | 56,902 | 63,045 | |||||||||
| Total Liabilities | 1,160,169 | 1,149,450 | |||||||||
| Total Equity | 756,802 | 655,447 | |||||||||
| Total Liabilities and Equity | $ | 1,916,971 | $ | 1,804,897 | |||||||
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ARMADA HOFFLER PROPERTIES, INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share amounts)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||
| Rental revenues | $ | 44,648 | $ | 41,832 | $ | 166,488 | $ | 151,339 | ||||||||||||||||||
| General contracting and real estate services revenues | 53,863 | 39,741 | 217,146 | 105,859 | ||||||||||||||||||||||
| Total revenues | 98,511 | 81,573 | 383,634 | 257,198 | ||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Rental expenses | 11,053 | 9,819 | 38,960 | 34,332 | ||||||||||||||||||||||
| Real estate taxes | 4,810 | 4,202 | 18,136 | 14,961 | ||||||||||||||||||||||
| General contracting and real estate services expenses | 52,071 | 38,683 | 209,472 | 101,538 | ||||||||||||||||||||||
| Depreciation and amortization | 17,740 | 15,690 | 59,972 | 54,564 | ||||||||||||||||||||||
| Amortization of right-of-use assets - finance leases | 146 | 147 | 586 | 377 | ||||||||||||||||||||||
| General and administrative expenses | 3,523 | 3,063 | 12,905 | 12,392 | ||||||||||||||||||||||
| Acquisition, development and other pursuit costs | 29 | 294 | 584 | 844 | ||||||||||||||||||||||
| Impairment charges | 461 | 252 | 666 | 252 | ||||||||||||||||||||||
| Total expenses | 89,833 | 72,150 | 341,281 | 219,260 | ||||||||||||||||||||||
| Gain on real estate dispositions | — | — | 6,388 | 4,699 | ||||||||||||||||||||||
| Operating income | 8,678 | 9,423 | 48,741 | 42,637 | ||||||||||||||||||||||
| Interest income | 3,786 | 6,593 | 19,841 | 23,215 | ||||||||||||||||||||||
| Interest expense on indebtedness | (7,868) | (8,571) | (30,120) | (30,776) | ||||||||||||||||||||||
| Interest expense on finance leases | (229) | (228) | (915) | (568) | ||||||||||||||||||||||
| Equity in income of unconsolidated real estate entities | — | — | — | 273 | ||||||||||||||||||||||
| Change in fair value of derivatives and other | 294 | 327 | (1,130) | (3,599) | ||||||||||||||||||||||
| Provision for unrealized credit losses | (29) | — | (256) | — | ||||||||||||||||||||||
| Other income (expense), net | (6) | 159 | 515 | 585 | ||||||||||||||||||||||
| Income before taxes | 4,626 | 7,703 | 36,676 | 31,767 | ||||||||||||||||||||||
| Income tax benefit | 63 | 152 | 283 | 491 | ||||||||||||||||||||||
| Net income | 4,689 | 7,855 | 36,959 | 32,258 | ||||||||||||||||||||||
| Net loss attributable to noncontrolling interests in investment entities | 49 | 427 | 230 | (213) | ||||||||||||||||||||||
| Preferred stock dividends | (2,887) | (1,067) | (7,349) | (2,455) | ||||||||||||||||||||||
| Net income attributable to common stockholders and OP Unit holders | $ | 1,851 | $ | 7,215 | $ | 29,840 | $ | 29,590 | ||||||||||||||||||
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ARMADA HOFFLER PROPERTIES, INC.
RECONCILIATION OF NET INCOME TO FFO & NORMALIZED FFO
(in thousands, except per share amounts)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
| Net income attributable to common stockholders and OP Unit holders | $ | 1,851 | $ | 7,215 | $ | 29,840 | $ | 29,590 | ||||||||||||||||||
Depreciation and amortization (1) | 17,678 | 15,285 | 59,545 | 53,616 | ||||||||||||||||||||||
Gain on operating real estate dispositions (2) | — | — | (6,388) | (3,220) | ||||||||||||||||||||||
| FFO attributable to common stockholders and OP Unit holders | $ | 19,529 | $ | 22,500 | $ | 82,997 | $ | 79,986 | ||||||||||||||||||
| Acquisition, development and other pursuit costs | 29 | 294 | 584 | 844 | ||||||||||||||||||||||
| Impairment of intangible assets and liabilities | 461 | 252 | 666 | 252 | ||||||||||||||||||||||
| Loss on extinguishment of debt | — | 30 | — | 30 | ||||||||||||||||||||||
| Provision for unrealized credit losses | 29 | — | 256 | — | ||||||||||||||||||||||
| Amortization of right-of-use assets - finance leases | 146 | 147 | 586 | 377 | ||||||||||||||||||||||
| Change in fair value of derivatives and other | (294) | (327) | 1,130 | 3,599 | ||||||||||||||||||||||
| Normalized FFO attributable to common stockholders and OP Unit holders | $ | 19,900 | $ | 22,896 | $ | 86,219 | $ | 85,088 | ||||||||||||||||||
| Net income attributable to common stockholders and OP Unit holders per diluted share and unit | $ | 0.02 | $ | 0.09 | $ | 0.38 | $ | 0.41 | ||||||||||||||||||
| FFO per diluted share and unit attributable to common stockholders and OP Unit holders | $ | 0.25 | $ | 0.29 | $ | 1.06 | $ | 1.10 | ||||||||||||||||||
| Normalized FFO per diluted share and unit attributable to common stockholders and OP Unit holders | $ | 0.25 | $ | 0.30 | $ | 1.10 | $ | 1.17 | ||||||||||||||||||
| Weighted average common shares and units - diluted | 79,171 | 76,762 | 78,309 | 72,644 | ||||||||||||||||||||||
________________________________________
| (1) The adjustment for depreciation and amortization for the years ended December 31, 2020 and 2019 exclude $0.4 million and $1.2 million, respectively, of depreciation attributable to the Company's joint venture partners. Additionally, the adjustment for depreciation and amortization for the year ended December 31, 2019 includes $0.2 million of depreciation attributable to the Company's investment in One City Center, which was an unconsolidated real estate investment until March 14, 2019. | ||
| (2) The adjustment for gain on operating real estate dispositions for the year ended December 31, 2019 excludes the portion of the gain on Lightfoot Marketplace that was allocated to our joint venture partner and excludes the gain on sale of a non-operating land parcel. | ||
Contact:
Michael P. O’Hara
Armada Hoffler Properties, Inc.
Chief Financial Officer and Treasurer
Email: MOHara@ArmadaHoffler.com
Phone: (757) 366-6684
8
2TABLE OF CONTENTS Forward-Looking Statements Corporate Profile Highlights 2021 Outlook & Assumptions Summary Information Net Asset Value Component Data Summary Balance Sheet Summary Income Statement FFO, Normalized FFO & Adjusted FFO Outstanding Debt Debt Information Core Debt to Core EBITDA Capitalization & Financial Ratios Property Portfolio Development & Redevelopment Pipeline Mezzanine Investments Acquisitions & Dispositions Construction Business Summary Same Store NOI by Segment Top 10 Tenants by Annualized Base Rent Lease Summary Office Lease Expirations Retail Lease Expirations COVID-19 Update Appendix – Definitions & Reconciliations Same Store vs Non-Same Store Properties Reconciliation to Core EBITDA Reconciliation to Property Portfolio NOI Reconciliation to GAAP Net Income 03 04 05 06 07 08 09 10 11 12 13 14 15 16 18 19 20 21 22 23 24 25 26 27 29 33 34 35 36 1405 Point Baltimore, MD
3 This Supplemental Financial Package should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated February 11, 2021, which has been furnished as Exhibit 99.1 to our Form 8-K filed on February 11, 2021. The Company makes statements in this Supplemental Financial Package that are 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 (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). These forward-looking statements may include comments relating to the current and future performance of the Company’s operating property portfolio, the Company’s development pipeline, the Company’s construction and development business, including backlog and timing of deliveries and estimated costs, financing activities, and the Company’s financial outlook and expectations. For a description of factors that may cause the Company’s actual results or performance to differ from its forward- looking statements, please review the information under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and the other documents filed by the Company with the Securities and Exchange Commission (the “SEC”) from time to time, including the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020. The Company’s actual future results and trends may differ materially from expectations depending on a variety of factors discussed in the Company’s filings with the SEC. These factors include, without limitation: (a) the impact of the coronavirus (COVID-19) pandemic on macroeconomic conditions and economic conditions in the markets in which the Company operates, including, among others: (i) disruptions in, or a lack of access to, the capital markets or disruptions in the Company’s ability to borrow amounts subject to existing construction loan commitments; (ii) adverse impacts to the Company’s tenants’ and other third parties’ businesses and financial conditions that adversely affect the ability and willingness of the Company’s tenants and other third parties to satisfy their rent and other obligations to the Company, including deferred rent; (iii) the ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration of the leases or to re-lease the Company’s properties on the same or better terms in the event of nonrenewal or early termination of existing leases; and (iv) federal, state and local government initiatives to mitigate the impact of the COVID-19 pandemic, including additional restrictions on business activities, shelter-in place orders and other restrictions, and the timing and amount of economic stimulus or other initiatives; (b) the Company’s ability to continue construction on development and construction projects, in each case on the timeframes and on terms currently anticipated; (c) the Company’s ability to accurately assess and predict the impact of the COVID-19 pandemic on its results of operations, financial condition, dividend policy, acquisition and disposition activities and growth opportunities; and (d) the Company’s ability to maintain compliance with the covenants under its existing debt agreements or to obtain modifications to such covenants from the applicable lenders. The Company expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. F O R W A R D - L O O K I N G S T AT E M E N T S T Rowe Price Global HQ Baltimore, MD
4 BOARD OF DIRECTORS Daniel A. Hoffler, Executive Chairman of the Board Louis S. Haddad, Vice Chairman of the Board James C. Cherry, Lead Independent Director George F. Allen, Independent Director James A. Carroll, Independent Director Eva S. Hardy, Independent Director A. Russell Kirk, Director Dorothy S. McAuliffe, Independent Director John W. Snow, Independent Director CORPORATE OFFICERS Louis S. Haddad, President and Chief Executive Officer Michael P. O’Hara, Chief Financial Officer Shawn J. Tibbetts, Chief Operating Officer Eric E. Apperson, President of Construction Shelly R. Hampton, President of Asset Management Bank of America Merrill Lynch James Feldman (646) 855-5808 james.feldman@bofa.com D. A. Davidson & Co. Barry Oxford (212) 240-9871 boxford@dadco.com Janney, Montgomery, & Scott LLC Robert Stevenson (646) 840-3217 robertstevenson@janney.com Raymond James & Associates Bill Crow (727) 567-2594 bill.crow@raymondjames.com Robert W. Baird & Co. David Rodgers (216) 737-7341 drodgers@rwbaird.com ANALYST COVERAGE CORPORATE PROFILE 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 located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. Founded in 1979 by Daniel A. Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information, visit ArmadaHoffler.com.
5HIGHLIGHTS • Net income attributable to common stockholders and OP Unit holders of $1.9 million, or $0.02 per diluted share, for the quarter ended December 31, 2020 compared to $7.2 million, or $0.09 per diluted share, for the quarter ended December 31, 2019. Net income attributable to common stockholders and OP Unit holders of $29.8 million, or $0.38 per diluted share, for the year ended December 31, 2020 compared to $29.6 million, or $0.41 per diluted share, for the year ended December 31, 2019. • Funds from operations attributable to common stockholders and OP Unit holders ("FFO") of $19.5 million, or $0.25 per diluted share, for the quarter ended December 31, 2020 compared to $22.5 million, or $0.29 per diluted share, for the quarter ended December 31, 2019. FFO of $83.0 million, or $1.06 per diluted share, for the year ended December 31, 2020 compared to $80.0 million, or $1.10 per diluted share, for the year ended December 31, 2019. • Normalized funds from operations attributable to common stockholders and OP Unit holders ("Normalized FFO") of $19.9 million, or $0.25 per diluted share, for the quarter ended December 31, 2020 compared to $22.9 million, or $0.30 per diluted share, for the quarter ended December 31, 2019. Normalized FFO of $86.2 million, or $1.10 per diluted share, for the year ended December 31, 2020 compared to Normalized FFO of $85.1 million, or $1.17 per diluted share, for the year ended December 31, 2019. • Introduced 2021 full-year Normalized FFO guidance in the range of $0.98 to $1.02 per diluted share, as set forth in the separate presentation that can be found on the Investors page of the Company's website, ArmadaHoffler.com. Executive management of the Company will provide further details regarding its 2021 earnings guidance during today's webcast and conference call. • Announced a first quarter cash dividend of $0.15 per common share, which is an increase of 36% over the prior quarter. • Core operating property portfolio occupancy at 94.4% as of December 31, 2020 compared to 96.5% as of December 31, 2019. • Formed a 50/50 joint venture that will develop and build T. Rowe Price's new 450,000 square foot global headquarters in Baltimore's Harbor Point. T. Rowe Price signed a 15-year lease and plans to relocate its downtown Baltimore operations to Harbor Point in the first half of 2024. In conjunction with the build-to-suit project, another joint venture will develop and build a new mixed-use facility with structured parking on a neighboring site to accommodate both existing and T. Rowe Price parking requirements. • Renewed over 84% of commercial office and retail space under expiring leases during the fourth quarter. Including new leases, the Company leased over 222,000 square feet of commercial office and retail space. • Collected 98% of portfolio rents for the fourth quarter, including 100% of office tenant rents, 99% of multifamily tenant rents, and 96% of retail tenant rents. Refer to pages 27-28 of the Supplemental Financial Package for further details. • Agreed to a new $23 million preferred equity mezzanine loan for the Solis Nexton development project. Solis Nexton will be a new 320-unit Class A apartment community in Summerville, South Carolina located within walking distance of Nexton Square, the 127,000 square foot lifestyle center acquired by the Company in 2020. • Reinstated and amended the Company’s two leases with Regal Cinemas to allow for continued occupancy by Regal Cinemas and to provide for additional density: • In Harrisonburg, Virginia, the potential for up to 228 conventional apartments and structured parking. • At the Virginia Beach Town Center, the ability to program significant additional mixed-use commercial space. • Completed the acquisition of the Edison Apartments in downtown Richmond, Virginia in an off-market, OP Unit transaction. • Completed the off-market acquisition of The Residences at Annapolis Junction, a 416-unit, Class A, LEED Gold certified mid-rise apartment community in Howard County, Maryland.
62021 OUTLOOK & ASSUMPTIONS G U I D A N C E A S S U M P T I O N S OUTLOOK LOW HIGH Total NOI $116.3M $117.3M Construction Segment Gross Profit $4.0M $5.3M G&A Expenses $14.3M $14.8M Mezzanine Interest Income $17.7M $18.1M Interest Expense $31.0M $31.7M Normalized FFO per diluted share $0.98 $1.02 • Acquisition of Delray Beach Plaza Whole Foods in the first quarter • New $23M preferred equity mezzanine loan for Solis Nexton beginning 2Q21 (see slide 20 in the Guidance Presentation) • Disposition of a Kroger-anchored shopping center in the second quarter for $5.5M • Interest expense based on Forward LIBOR Curve, which forecasts rates ending the year at 0.15% • Opportunistic sale of common stock through the ATM program, resulting in a full year weighted average share count of 82.5M
7SUMMARY INFORMATION $ IN THOUSANDS, EXCEPT PER SHARE DATE (1) See definition on page 31. (2) Includes common shares and OP units. (3) Excludes GAAP adjustments. (4) Office and retail occupancy based on leased square feet as a % of respective total. (5) Multifamily and student housing occupancy based on occupied units/beds as a % of total. (6) Regal leases which were terminated in October 2020 have been re-signed and included in occupancy for both quarters. Regal at Columbus Village II was re-signed after December 31, 2020. (7) Includes impact of seasonality related to student housing. (8) Total occupancy weighted by annualized base rent. Three months ended 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 OPERATIONAL METRICS Net income attributable to common stockholders and OP unit holders $1,851 $8,651 $11,178 $8,160 $7,215 Net income attributable to common stockholders and OP unit holders per diluted share $0.02 $0.11 $0.14 $0.11 $0.09 Rental properties Net Operating Income (NOI) 28,785 24,653 27,373 28,581 27,811 General contracting and real estate services gross profit 1,792 2,108 2,056 1,718 1,058 Adjusted EBITDA (1) 30,534 29,976 31,108 34,170 31,910 Funds From Operations (FFO) attributable to common stockholders and OP unit holders 19,529 19,170 22,046 22,252 22,500 FFO per diluted share attributable to common stockholders and OP unit holders $0.25 $0.24 $0.28 $0.29 $0.29 Normalized FFO attributable to common stockholders and OP unit holders 19,900 19,039 22,583 24,697 22,896 Normalized FFO per diluted share attributable to common stockholders and OP unit holders $0.25 $0.24 $0.29 $0.32 $0.30 Annualized dividend yield 3.92% 4.75% NA 8.22% 4.58% CAPITALIZATION Common shares outstanding 59,073 57,934 57,010 56,492 56,278 Operating Partnership units outstanding 20,865 20,523 21,273 21,273 21,273 Common shares and OP units outstanding 79,938 78,457 78,283 77,765 77,551 Market price per common share $11.22 $9.26 $9.95 $10.70 $18.35 Common equity capitalization (2) $896,904 $726,512 $778,916 $832,085 $1,423,061 Preferred equity capitalization 171,085 171,075 63,350 63,250 63,250 Total equity capitalization $1,067,989 $897,587 $842,266 $895,335 $1,486,311 Total debt (3) 962,812 885,359 956,726 1,016,293 960,819 Total capitalization 2,030,801 1,782,946 1,798,992 1,911,628 2,447,130 Less: cash (50,430) (79,224) (75,111) (52,788) (43,579) Total enterprise value $1,980,371 $1,703,722 $1,723,881 $1,858,840 $2,403,551 BALANCE SHEET METRICS Core debt / enterprise value 38.4% 37.5% 43.2% 45.0% 33.6% Core debt + preferred equity / enterprise value 47.1% 47.6% 46.8% 48.4% 36.2% Fixed charge coverage ratio 2.3x 2.5x 3.0x 2.8x 2.6x Core debt / Annualized core EBITDA 6.6x 5.8x 6.5x 6.3x 6.5x Core debt + preferred equity / Annualized core EBITDA 8.1x 7.3x 7.0x 6.8x 7.0x CORE PORTFOLIO OCCUPANCY Office (4) 97.0% 96.7% 97.0% 96.6% 96.6% Retail (4) 94.7% (6) 94.2% (6) 95.1% 96.1% 96.9% Multifamily (5) 92.5% 95.9% 87.9% (7) 93.7% 95.6% Weighted Average (8) 94.4% 95.4% 93.6% 95.6% 96.5%
8NET ASSET VALUE COMPONENT DATA (1) NOI from non-stabilized portfolio and development pipeline excluded from stabilized portfolio. (2) Excludes expenses associated with the Company’s in-house asset management division of $0.6M for the 3 months ended 12/31/2020. (3) Includes leases for spaces occupied by Armada Hoffler which are eliminated for GAAP purposes. (4) Excludes Columbus Village II Regal lease signed after year end. (5) Excludes lease right of use assets and lease liabilities. (6) Excludes GAAP adjustments. (7) Management’s assessment of comparable multifamily assets in the applicable market. $ IN THOUSANDS Stabilized Portfolio NOI (Cash) (1) Third-Party General Contracting and Real Estate Services Three months ended 12/31/2020 Trailing 12 Months Office (3) Retail Multifamily Total General Contracting Gross Profit $7,674 Stable Portfolio Portfolio NOI (2) $6,629 $12,816 $8,170 $27,615 Non-Property Assets (5) Unstabilized Properties NOI 57 (144) - (87) As of 12/31/2020 Signed Leases Not Yet Occupied or In Free Rent Period (4) 149 972 76 1,197 Cash and Retricted Cash $50,430 Net Deferrals and Recoveries (24) (739) (15) (778) Accounts Receivable 28,259 Stable Portfolio NOI $6,811 $12,905 $8,231 $27,947 Notes Receivable, Including Mezzanine and Equity Investments (6) 135,385 Intra-Quarter Transactions Construction receivables, including retentions (6) 38,918 Net Acquisitons - - 444 444 Acquired lease intangible assets, net 58,154 Net Dispositions - - - - Equity method investments 1,078 Total $0 $0 $444 $444 Other Assets 43,462 Annualized $27,244 $51,619 $34,700 $113,564 Total Non-Property Assets $355,686 Liabilities (5) Non-Stabilized Portfolio As of 12/31/2020As of 12/31/2020 Mortgages and Notes Payable (6) $962,812 Development Cost - See Page 18 $160,000 Accounts Payable and Accrued Liabilities 23,900 Construction Payables, Including Retentions 49,821 Total Non-Stabilized Portfolio $160,000 Other Liabilities 60,359 Total Liabilities $1,096,892 Management's Estimate of Land Value/Net Rent and Vacancy Opportunities Size Estimated Value (7) Preferred Equity Columbus Village II Development Opportunity Liquidation Value Land Value 5 acres $1.5M/acre Series A Cumulative Redeemable Perpetual Preferred Stock $171,085 Harrisonburg Regal Development Opportunity Multifamily 228 units $20,000-30,000/unit Common Equity Regal 49,000 sf $15/sf As of 12/31/2020 Total common shares outstanding 59,073 Size Net Rent PSF Total OP units outstanding 20,865 At Lease or LOI's on Vacant Space 90,000 sf $23/sf Total Common Shares & OP Units Outstanding 79,938
9SUMMARY BALANCE SHEET $ IN THOUSANDS 12/31/2020 12/31/2019 Assets (Unaudited) Real estate investments: Income producing property $1,680,943 $1,460,723 Held for development 13,607 5,000 Construction in progress 63,367 140,601 Accumulated depreciation (253,965) (224,738) Net real estate investments $1,503,952 $1,381,586 Real estate investments held for sale 1,165 1,460 Cash and cash equivalents 40,998 39,232 Restricted cash 9,432 4,347 Accounts receivable, net 28,259 23,470 Notes receivable, net 135,432 159,371 Construction receivables, including retentions, net 38,735 36,361 Construction contract costs and estimated earnings in excess of bil l ings 138 249 Equity method investments 1,078 - Operating lease right-of-use assets 32,760 33,088 Finance lease right-of-use assets 23,544 24,130 Acquired lease intangible assets 58,154 68,702 Other assets 43,324 32,901 Total Assets $1,916,971 $1,804,897 Liabilities and Equity Indebtedness, net $963,845 $950,537 Accounts payable and accrued liabilities 23,900 17,803 Construction payables, including retentions 49,821 53,382 Bil l ings in excess of costs and estimated earnings 6,088 5,306 Operating lease liabilities 41,659 41,474 Finance lease liabilities 17,954 17,903 Other l iabilities 56,902 63,045 Total Liabilities 1,160,169 1,149,450 Total Equity 756,802 655,447 Total Liabilities and Equity $1,916,971 $1,804,897 As of
10SUMMARY INCOME STATEMENT IN THOUSANDS, EXCEPT PER SHARE DATA Three months ended Year ended 12/31/2020 12/31/2019 12/31/2020 12/31/2019 Revenues (Unaudited) Rental revenues $44,648 $41,832 $166,488 $151,339 General contracting and real estate services revenues 53,863 39,741 217,146 105,859 Total Revenues $98,511 $81,573 $383,634 $257,198 Expenses Rental expenses 11,053 9,819 38,960 34,332 Real estate taxes 4,810 4,202 18,136 14,961 General contracting and real estate services expenses 52,071 38,683 209,472 101,538 Depreciation and amortization 17,740 15,690 59,972 54,564 Amortization of right-of-use assets - finance leases 146 147 586 377 General and administrative expenses 3,523 3,063 12,905 12,392 Acquisition, development and other pursuit costs 29 294 584 844 Impairment charges 461 252 666 252 Total Expenses $89,833 $72,150 $341,281 $219,260 Gain on real estate dispositions - - 6,388 4,699 Operating Income 8,678 9,423 48,741 42,637 Interest income 3,786 6,593 19,841 23,215 Interest expense on indebtedness (7,868) (8,571) (30,120) (30,776) Interest expense on finance leases (229) (228) (915) (568) Change in fair value of derivatives and other 294 327 (1,130) (3,599) Equity in income of unconsolidated real estate entities - - - 273 Provision for unrealized credit losses (29) - (256) - Other income (expense), net (6) 159 515 585 Income before taxes 4,626 7,703 36,676 31,767 Income tax benefit 63 152 283 491 Net Income $4,689 $7,855 $36,959 $32,258 Net income attributable to noncontrolling interest in investment entities 49 427 230 (213) Preferred stock dividends (2,887) (1,067) (7,349) (2,455) Net income attributable to AHH and OP Unit holders $1,851 $7,215 $29,840 $29,590 Net income per diluted share and unit attributable to AHH and OP Unit holders $0.02 $0.09 $0.38 $0.41 Weighted Average Shares & Units - Diluted 79,171 76,762 78,309 72,644
11FFO, NORMALIZED FFO & AFFO (1) IN THOUSANDS, EXCEPT PER SHARE DATA (1) See definitions on pages 30-31. (2) Adjusted for the depreciation attributable to noncontrolling interests in consolidated investments. (3) Excludes development, redevelopment, and first-generation space. (4) Includes non-cash interest expense relating to indebtedness and interest expense on finance leases. Three months ended (Unaudited) Year Ended (Unaudited) 12/31/2020 9/30/2020 6/30/2020 3/31/2020 2020 2019 Funds From Operations Net income attributable to AHH and OP unit holders $1,851 $8,651 $11,178 $8,160 $29,840 $29,590 Earnings per diluted share $0.02 $0.11 $0.14 $0.11 $0.38 $0.41 Depreciation and amortization (2) 17,678 14,131 13,644 14,092 59,545 53,616 Gains on dispositions of operating real estate - (3,612) (2,776) - (6,388) (3,220) FFO $19,529 $19,170 $22,046 $22,252 $82,997 79,986 FFO per diluted share $0.25 $0.24 $0.28 $0.29 $1.06 $1.10 Normalized FFO Acquisition, development & other pursuit costs 29 26 502 27 584 844 Loss on extinguishment of debt - - - - - 30 Non cash GAAP Adjustments 636 161 29 682 1,508 629 Change in fair value of derivatives and other (294) (318) 6 1,736 1,130 3,599 Normalized FFO $19,900 $19,039 $22,583 $24,697 $86,219 $85,088 Normalized FFO per diluted share $0.25 $0.24 $0.29 $0.32 $1.10 $1.17 Adjusted FFO Non-cash stock compensation 471 456 421 1,030 2,378 1,613 Acquisition, development & other pursuit costs (29) (26) (502) (27) (584) (844) Tenant improvements, leasing commissions, lease incentives (3) (1,924) (2,770) (728) (1,318) (6,740) (4,772) Property related capital expenditures (2,500) (1,373) (2,316) (1,014) (7,203) (7,468) Adjustment for loan modification and exit fees (493) (614) (614) (2,074) (3,795) (5,587) Non-cash interest expense (4) 934 874 673 638 3,119 1,826 Cash ground rent payment - finance lease (291) (291) (241) (216) (1,039) (535) GAAP Adjustments (1,940) (684) (6,295) (984) (9,903) (4,916) AFFO $14,128 $14,611 $12,981 $20,732 $62,452 $64,405 AFFO per diluted share $0.18 $0.19 $0.17 $0.27 $0.80 $0.89 Weighted Average Common Shares Outstanding 58,304 57,923 56,668 56,398 57,328 53,119 Weighted Average OP Units Outstanding 20,867 20,520 21,273 21,273 20,981 19,525 Total Weighted Average Common Shares and OP Units Outstanding 79,171 78,443 77,941 77,671 78,309 72,644
12OUTSTANDING DEBT $ IN THOUSANDS (1) Includes debt subject to interest rate swap locks. (2) Refinanced subsequent to quarter end, new rate and maturity reflected. (3) Subject to a LIBOR rate floor. Debt Stated Rate Effective Rate as of 12/31/2020 Maturity Date 2021 2022 2023 2024 2025 Thereafter Outstanding as of 12/31/2020 Secured Notes Payable - Core Debt Southgate Square L+1.60% 1.74% Apr-2021 $19,682 $19,682 Red Mill West 4.23% 4.23% Jun-2022 465 10,386 10,851 Thames Street Wharf L+1.30% 1.81% (1) Jun-2022 - 70,000 70,000 Marketplace at Hilltop 4.42% 4.42% Oct-2022 414 9,706 10,120 1405 Point L+2.25% 2.39% Jan-2023 714 754 51,532 53,000 Socastee Commons 4.57% 4.57% Jan-2023 115 120 4,223 4,458 Nexton Square (2) L+2.25% 2.50% (3) Feb-2023 - - 22,909 22,909 249 Central Park Retail L+1.60% 3.85% (1) Aug-2023 245 260 16,092 16,597 Fountain Plaza Retail L+1.60% 3.85% (1) Aug-2023 147 156 9,685 9,988 South Retail L+1.60% 3.85% (1) Aug-2023 107 114 7,066 7,287 Hoffler Place L+2.60% 3.00% (3) Jan-2024 - - 257 18,143 18,400 Summit Place L+2.60% 3.00% (3) Jan-2024 - - 311 22,789 23,100 One City Center L+1.85% 1.99% Apr-2024 628 659 691 22,734 24,712 Red Mill Central 4.80% 4.80% Jun-2024 175 175 175 1,838 2,363 Premier Apartments L+1.55% 1.69% Oct-2024 208 221 234 16,053 16,716 Red Mill South 3.57% 3.57% May-2025 315 327 338 351 4,502 5,833 Brooks Crossing Office L+1.60% 1.74% Jul-2025 831 846 861 875 11,980 15,393 Market at Mill Creek L+1.55% 1.69% Jul-2025 647 647 647 647 11,201 13,789 Johns Hopkins Village L+1.25% 4.19% (1) Aug-2025 988 1,031 1,075 1,116 46,649 50,859 North Point Center Note 2 7.25% 7.25% Sep-2025 140 151 162 174 1,467 2,094 Encore Apartments (2) 2.93% 2.93% Feb-2026 - - - - - 24,337 24,337 4525 Main Street (2) 2.93% 2.93% Feb-2026 - - - - - 31,231 31,231 Lexington Square 4.50% 4.50% Sep-2028 268 280 293 306 320 12,973 14,440 Red Mill North 4.73% 4.73% Dec-2028 105 110 116 121 127 3,715 4,294 Greenside Apartments 3.17% 3.17% Dec-2029 712 735 759 783 808 29,513 33,310 Annapolis Junction Apartments SOFR +2.66% 2.75% Nov-2030 - - 147 1,753 1,809 80,666 84,375 Smith's Landing 4.05% 4.05% Jun-2035 880 917 956 994 1,037 12,547 17,331 Liberty Apartments 5.66% 5.66% Nov-2043 304 322 341 361 382 12,167 13,877 Edison Apartments 5.30% 5.30% Dec-2044 345 364 384 405 427 14,347 16,272 The Cosmopolitan 3.35% 3.35% Jul-2051 819 847 876 906 937 38,524 42,909 Total - Secured Core Debt 29,254 99,128 120,130 90,349 81,646 260,020 680,527 Secured Notes Payable - Development Pipeline Wills Wharf L+2.25% 2.39% Jun-2023 - - 59,044 $59,044 Solis Gainesvil le L+3.00% 3.75% (3) Aug-2024 - Premier Retail L+1.55% 1.69% Oct-2024 102 109 115 7,915 8,241 Total - Development Pipeline 102 109 59,159 7,915 - - 67,285 Total Secured Notes Payable 29,356 99,237 179,289 98,264 81,646 260,020 747,812 Unsecured Core Debt Senior Unsecured Line of Credit L+1.30%-1.85% 1.64% Jan-2024 - - - 10,000 10,000 Senior Unsecured Term Loan L+1.25%-1.80% 1.59% Jan-2025 - - - - 19,500 19,500 Senior Unsecured Term Loan L+1.25%-1.80% 1.95% - 4.47% (1) Jan-2025 - - - - 185,500 185,500 Total - Unsecured Core Debt - - - 10,000 205,000 - 215,000 Total Notes Payable excluding GAAP Adjustments $29,356 $99,237 $179,289 $108,264 $286,646 $260,020 $962,812 GAAP Adjustments 1,033 Total Notes Payable $963,845 Debt Maturities & Principal Payments
13 2.3% 2.5% 2.8% 2.4% 3.2% 3.4% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2021 2022 2023 2024 2025 Thereafter⁽¹⁾ Debt Maturities(1) Debt Maturing Weighted Average Interest Rate DEBT INFORMATION (1) Includes refinances that occurred subsequent to 12/31/20. (2) Excludes debt subject to interest rate swap locks. (3) Includes debt subject to interest rate swap locks. (4) Excludes GAAP adjustments. $ IN THOUSANDS Interest Rate Cap Agreements Effective Date Maturity Date Strike Rate Notional Amount January 2020 February 2022 1.75% 100,000 March 2020 March 2022 1.50% 100,000 July 2020 July 2023 0.50% 100,000 October 2020 November 2023 SOFR 1.84% 84,375 February 2021 February 2023 0.50% 100,000 Total Interest Rate Caps 484,375 Fixed-rate Debt (3)(4) $573,951 Fixed-rate and Hedged Debt $1,058,326 Total Debt (4) $962,812 % of Total Debt (4) 100% Total Debt Composition Weighted Average (1) % of Debt Interest Rate Maturity Secured vs. Unsecured Debt Unsecured Debt 22.3% 3.0% 4.0 Yrs Secured Debt 77.7% 3.0% 6.8 Yrs Variable vs. Fixed-rate Debt (1) Variable-rate Debt (2) 40.4% 2.3% 4.3 Yrs Fixed-rate Debt (3)(4) 59.6% 3.4% 7.4 Yrs Fixed-rate and Hedged Debt (3)(4) 100% Total 3.0% 6.2 Yrs
14CORE DEBT TO CORE EBITDA $ IN THOUSANDS SEE PAGE 34 FOR CALCULATION AND RECONCILIATION. (1) See reconciliation on page 34. (2) Excludes non-recurring items. (3) Excludes GAAP Adjustments. (4) See Page 31 for definition. Three months ended 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 Net income attributable to common stockholders and OP unit holders $1,851 $8,651 $11,178 $8,160 $7,215 Adjusted EBITDA (1)(2)(4) $30,534 $29,976 $31,108 $34,170 $31,910 Other adjustments: Development/Redevelopment (880) (2,225) (1,085) (1,133) (1,010) (Less) Acquisitions/Dispositions completed intra-quarter (961) (155) (1,351) - - Core EBITDA (4) $28,693 $27,596 $28,672 $33,037 $30,900 Annualized Core EBITDA $114,770 $110,382 $114,689 $132,148 $123,600 Total debt (3) $962,812 $885,359 $956,726 $1,016,293 $960,819 Adjustments to debt: (Less) Development/Redevelopment (67,285) (143,560) (137,508) (127,650) (109,930) (Less) Net Acquisitions completed intra-quarter (84,375) (22,909) - - - (Less) Cash & restricted cash (50,430) (79,224) (75,111) (52,788) (43,579) Core Debt (4) $760,722 $639,666 $744,107 $835,855 $807,310 Core Debt/Annualized Core EBITDA 6.6x 5.8x 6.5x 6.3x 6.5x
15 Unsecured Credit Facility Unsecured Term Loans Mortgages Payable Preferred Equity Common Units CAPITALIZATION & FINANCIAL RATIOS $ IN THOUSANDS AS OF DECEMBER 31, 2020 (1) Reflects quarterly Adjusted EBITDA divided by total quarterly interest expense and required principal repayment (2) Reflects quarterly Adjusted EBITDA divided by total quarterly interest expense, required principal repayment, and preferred equity dividends. 1% 10% 37% 7% 33% 12% Debt 47% Equity 53% Debt % of Total Principal Balance Unsecured credit facil ity 1% $10,000 Unsecured term loans 21% 205,000 Mortgages payable 78% 747,812 Total debt $962,812 Preferred Equity Shares Liquidation Value Per Share Total Liquidation Value 6,843 $25.00 $171,085 Common Equity % of Total Shares/Units Stock Price Market Value Common stock (NYSE: AHH) 74% 59,073 $11.22 $662,799 Common units 26% 20,865 $11.22 234,105 Equity market capitalization 79,938 $896,904 Total capitalization $2,030,801 Financial Ratios Debt Service Coverage Ratio (1) 2.9x Fixed Charge Coverage Ratio (2) 2.3x Net Debt to Adjusted EBITDA 7.9x Core Debt to Core EBITDA 6.6x Core Debt + Preferred Equity to Core EBITDA 8.1x Debt/Total Capitalization 47% Liquidity Unencumbered Properties Cash on hand $50,430 % of Total Properties 56% Availability under credit facil ity 124,000 % of Annualized Base Rent 34% Availability under construction loans 52,551 $226,981 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock (NYSE: AHHPrA)
16PROPERT Y PORTFOLIO AS OF DECEMBER 31, 2020 Properties with Tenants Subject to Ground Lease Number of Ground Leases Square Footage Leased Pursuant to Ground Leases ABR Broad Creek Shopping Center 6 23,825 $660,200 Columbus Village 1 3,403 200,000 Hanbury Village 2 55,586 1,082,118 Market at Mill Creek 1 7,014 63,000 Marketplace at Hilltop 1 4,211 149,996 North Point Center 4 280,556 1,169,778 Oakland Marketplace 1 45,000 186,347 Red Mill Commons 8 33,961 780,538 Sandbridge Commons 3 60,521 738,500 Tyre Neck Harris Teeter 1 48,859 533,285 Total / Weighted Avg 28 562,936 $5,563,762 Net Rentable Square Feet (RSF) (1) Retail Properties Anchor Tenant(s) Location Town Center Unencumbered ABR Year Built Core Properties Development/ Redevelopment Properties Total Core Occupancy (2) Development/ Redevelopment Leased (2) ABR (3) ABR per Leased SF (3) 249 Central Park Retail Cheesecake Factory, Brooks Brothers Virginia Beach, VA ✓ - 2004 92,400 - 92,400 97.9% - $2,382,569 $26.34 Apex Entertainment Apex Entertainment, USI Virginia Beach, VA ✓ 100% 2002 103,335 - 103,335 100.0% - 1,482,137 14.34 Broad Creek Shopping Center (6)(9) Food Lion, PetSmart Norfolk, VA 100% 1997/2001 121,504 - 121,504 95.1% - 2,075,499 17.97 Broadmoor Plaza Kroger South Bend, IN 100% 1980 115,059 - 115,059 97.5% - 1,329,203 11.84 Brooks Crossing Retail Various Small Shops Newport News, VA 100% 2016 18,349 - 18,349 66.3% - 170,112 13.98 Columbus Village (6) Barnes & Noble, Shake Shack Virginia Beach, VA ✓ 100% 1980/2013 62,362 - 62,362 91.0% - 1,719,906 30.30 Columbus Village II BB&B, Regal (12) Virginia Beach, VA ✓ 100% 1995/1996 92,061 - 92,061 96.7% - 720,000 8.09 Commerce Street Retail Yard House Virginia Beach, VA ✓ 100% 2008 19,173 - 19,173 100.0% - 888,913 46.36 Courthouse 7-Eleven 7-Eleven Virginia Beach, VA 100% 2011 3,177 - 3,177 100.0% - 139,311 43.85 Dimmock Square Best Buy, Old Navy Colonial Heights, VA 100% 1998 106,166 - 106,166 75.3% - 1,465,285 18.34 Fountain Plaza Retail Ruth's Chris, Ann Taylor Virginia Beach, VA ✓ - 2004 35,961 - 35,961 100.0% - 998,614 27.77 Greentree Shopping Center Various Small Shops Chesapeake, VA 100% 2014 15,719 - 15,719 92.6% - 328,536 22.57 Hanbury Village (6) Harris Teeter Chesapeake, VA 100% 2006/2009 101,815 - 101,815 100.0% - 2,123,044 20.85 Harrisonburg Regal Regal Cinemas Harrisonburg, VA 100% 1999 49,000 - 49,000 100.0% - 717,850 14.65 Lexington Square Lowes Foods Lexington, SC - 2017 85,440 - 85,440 98.3% - 1,822,429 21.69 Market at Mill Creek (6) Lowes Foods Mt. Pleasant, SC - 2018 80,319 - 80,319 97.7% - 1,811,315 23.07 Marketplace at Hilltop (6)(9) Total Wine, Panera, Chick-Fil-A Virginia Beach, VA - 2000/2001 116,953 - 116,953 95.0% - 2,435,974 21.92 Nexton Square Various Small Shops Summerville, SC - 2020 127,196 - 127,196 87.7% - 2,900,471 26.01 North Hampton Market PetSmart, Hobby Lobby Taylors, SC 100% 2004 114,954 - 114,954 97.7% - 1,471,074 13.09 North Point Center (6)(11) Harris Teeter, Home Depot, Costco Durham, NC 88% 1998/2009 494,746 - 494,746 99.1% - 3,672,862 7.49 Oakland Marketplace (6) Kroger Oakland, TN 100% 2004 64,538 - 64,538 100.0% - 473,268 7.33 Parkway Centre Publix Moultrie, GA 100% 2017 61,200 - 61,200 100.0% - 833,832 13.62 Parkway Marketplace Rite Aid Virginia Beach, VA 100% 1998 37,804 - 37,804 87.3% - 674,458 20.44 Patterson Place BB&B, PetSmart, DSW Durham, NC 100% 2004 160,942 - 160,942 81.3% - 2,114,958 16.17 Perry Hall Marketplace Safeway Perry Hall, MD 100% 2001 74,256 - 74,256 100.0% - 1,280,535 17.24 Premier Retail Will iams Sonoma, Pottery Barn Virginia Beach, VA ✓ - 2018 - 39,162 39,162 - 75.6% 969,014 32.73 Providence Plaza Cranfil l , Sumner & Hartzog, Chipotle Charlotte, NC 100% 2007/2008 103,118 - 103,118 91.6% - 2,674,198 28.31 Red Mill Commons (6) Homegoods, Walgreens Virginia Beach, VA 8% 2000-2005 373,808 - 373,808 92.0% - 6,275,721 18.26 Sandbridge Commons (6) Harris Teeter Virginia Beach, VA 100% 2015 76,650 - 76,650 100.0% - 1,097,184 14.31 Socastee Commons (11) Bi-Lo Myrtle Beach, SC - 2000/2014 57,273 - 57,273 100.0% - 653,915 11.42 Southgate Square Burlington, PetSmart, Michaels, Conn's Colonial Heights, VA - 1991/2016 260,131 - 260,131 95.1% - 3,443,093 13.92 South Retail lululemon, free people, CPK Virginia Beach, VA ✓ - 2002 38,515 - 38,515 100.0% - 999,534 25.95 South Square Ross, Petco, Office Depot Durham, NC 100% 1977/2005 109,590 - 109,590 98.1% - 1,875,689 17.45 Southshore Shops Buffalo Wild Wings Chesterfield, VA 100% 2006 40,307 - 40,307 74.1% - 624,085 20.89 Studio 56 Retail Rocket Title Virginia Beach, VA ✓ 100% 2007 11,594 - 11,594 15.2% - 54,182 30.75 Tyre Neck Harris Teeter (6)(9) Harris Teeter Portsmouth, VA 100% 2011 48,859 - 48,859 100.0% - 533,285 10.91 Wendover Village T.J. Maxx, Petco Greensboro, NC 100% 2004 176,939 - 176,939 99.4% - 3,415,200 19.42 Total / Weighted Avg Retail Portfolio 58% 3,651,213 39,162 3,690,375 94.7% $58,647,255 $16.82 (A) Space has been 100% re-leased with lease commencement date of 2/1/21 (B) Tenant executed a 5-month lease extension from previous lease expiration Significant Terminations Subsequent to the Quarter Tenant Property Effective Date SF Impact ABR Impact ABR per Leased SF Bed, Bath, & Beyond (A) Wendover Village 1/31/2021 33,696 $404,352 $12.00 Bed, Bath, & Beyond North Point Center 1/31/2021 30,000 300,000 10.00 Bi-Lo (B) Socastee Commons 6/30/2021 46,673 492,400 10.55 Total / Weighted Avg 110,369 $1,196,752 $10.84
17PROPERT Y PORTFOLIO CONT. AS OF DECEMBER 31, 2020 (1) The net rentable square footage for each of our retail & office properties is the sum of (a) the square footage of existing leases, plus (b) for available space, management’s estimate of net rentable square footage based, in part, on past leases. The net rentable square footage included in office leases is generally consistent with the Building Owners and Managers Association, or BOMA, 1996 measurement guidelines. (2) Occupancy for each of our retail & office properties is calculated as (a) square footage under executed leases as of December 31, 2020, divided by (b) net rentable square feet, expressed as a percentage. Occupancy for our multifamily properties is calculated as (a) total units/beds occupied as of December 31, 2020, divided by (b) total units/beds available, as of such date expressed as a percentage. (3) For the properties in our retail & office portfolios, annualized base rent, or ABR, is calculated 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) as of December 31, 2020 for in-place leases as of such date by (b) 12, and does not give effect to periodic contractual rent increases or contingent rental revenue (e.g., percentage rent based on tenant sales thresholds). ABR per leased square foot is calculated by dividing (a) ABR by (b) square footage under in-place leases as of December 31, 2020. In the case of triple net or modified gross leases, our calculation of ABR does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses. (4) The Company occupied 55,390 square feet at these two properties at an ABR of $1.8M, or $32.99 per leased square foot, which are reflected in this table. The rent paid by us is eliminated in accordance with GAAP in the consolidated financial statements. (5) Includes ABR pursuant to a rooftop lease. (6) Net rentable square feet at certain of our retail properties includes pad sites leased pursuant to the ground leases in the table on page 16. (7) For the properties in our multifamily portfolio, AQR is calculated by multiplying (a) revenue for the quarter ended December 31, 2020 by (b) 4. (8) The AQR for Liberty, Cosmopolitan, Johns Hopkins Village, Hoffler Place, and 1405 Point excludes approximately $0.3M, $0.7M, $1.1M, $0.1M and $0.4M, respectively, from ground floor retail leases. (9) The Company leases all or a portion of the land underlying this property pursuant to a ground lease. (10) Student Housing property that is leased by bed. Monthly effective rent per occupied unit is calculated by dividing total base rental payments for the month ended December 31, 2020 by the number of occupied beds. (11) Refer to table on page 16 for information on subsequent terminations. (12) Regal Cinema lease was executed subsequent to the quarter. Net Rentable Square Feet (RSF) (1) Office Properties Anchor Tenant(s) Location Town Center Unencumbered ABR Year Built Core Properties Development Properties Total Core Occupancy (2) Development Leased (2) ABR (3) ABR per Leased SF (3) 4525 Main Street Clark Nexsen, Anthropologie, Mythics Virginia Beach, VA ✓ - 2014 234,938 - 234,938 99.4% - $6,941,742 $29.73 Armada Hoffler Tower (4)(5) AHH, Troutman Sanders, Will iams Mullen Virginia Beach, VA ✓ 100% 2002 320,680 - 320,680 95.9% - 8,983,921 29.23 Brooks Crossing Office Huntington Ingalls Industries Newport News, VA - 2019 98,061 - 98,061 100.0% - 1,850,411 18.87 One Columbus (5) BB&T, HBA Virginia Beach, VA ✓ 100% 1984 128,770 - 128,770 98.9% - 3,249,143 25.52 One City Center Duke University, WeWork Durham, NC - 2019 151,599 - 151,599 89.3% - 4,242,798 31.33 Thames Street Wharf (4) Morgan Stanley, JHU Medical Baltimore, MD - 2010 263,426 - 263,426 99.4% - 7,250,291 27.70 Two Columbus Hazen & Sawyer, Fidelity Virginia Beach, VA ✓ 100% 2009 108,459 - 108,459 95.4% - 2,576,166 24.89 Wills Wharf (9) Canopy by Hilton, EY Baltimore, MD - 2020 - 327,133 327,133 - 47.2% 2,726,155 17.66 Total / Weighted Average Office Portfolio 39% 1,305,933 327,133 1,633,066 97.0% $37,820,627 $26.61 Units/Beds Multifamily Properties Location Town Center Unencumbered AQR Year Built Core Properties Development/ Redevelopment Properties Total Units Core Occupancy (2) Development/ Redevelopment Occupancy (2) AQR (7) Monthly Effective Rent per Occupied Unit 1405 Point (8)(9) Baltimore, MD - 2018 289 - 289 95.5% - $7,047,293 $2,128 Encore Apartments Virginia Beach, VA ✓ - 2014 286 - 286 95.8% - 4,766,247 $1,450 Edison Apartments Richmond, VA - 2014 174 - 174 94.3% - 2,590,681 $1,316 Greenside Apartments Charlotte, NC - 2018 225 - 225 96.0% - 4,351,885 $1,679 Liberty Apartments (8) Newport News, VA - 2013 197 - 197 94.2% - 3,036,195 $1,363 Premier Apartments Virginia Beach, VA ✓ - 2018 131 - 131 96.9% - 2,529,100 $1,660 Residences at Annapolis Junction Annapolis Junction, MD - 2018 416 - 416 95.2% - 9,216,495 $1,939 Smith's Landing (9) Blacksburg, VA - 2009 284 - 284 98.9% - 4,839,715 $1,435 The Cosmopolitan (8) Virginia Beach, VA ✓ - 2006 342 - 342 96.2% - 7,012,966 $1,776 Multifamily Total - 2,344 - 2,344 95.9% $45,390,577 $1,682 Hoffler Place (8)(10) Charleston, SC - 2019 258 - 258 98.1% - $3,281,542 $1,081 Johns Hopkins Village (8)(9)(10) Baltimore, MD - 2016 568 - 568 72.9% - 6,683,068 $1,345 Summit Place (10) Charleston, SC - 2020 357 - 357 96.9% - 3,624,274 $873 Student Housing Total - 1,183 - 1,183 85.6% $13,588,884 $1,118 Total / Weighted Avg Multifamily Portfolio - 3,527 - 3,527 92.5% $58,979,461 $1,205
18DEVELOPMENT & REDEVELOPMENT P IPEL INE $ IN THOUSANDS (1) Represents estimates that may change as the development and redevelopment process proceeds. (2) First fully-stabilized quarter. See same store definition on page 33. (3) Reflects AHH portion of Joint Venture cost. (4) Majority interest in joint venture with preferred return. (5) Will be structured as an unconsolidated joint venture. Q4 2020 YTD Capitalized Interest $420 $3,642 Capitalized Overhead $519 $2,570 Schedule (1) Projects Property Type Estimated (1) % Leased or LOI Construction Start Initial Occupancy Stabilized Operation (2) Estimated Cost (1) Loan Commitment Cost to Date AHH Ownership % Anchor Tenants Unconsolidated Joint Venture T Rowe Price Global HQ Baltimore, MD Office 450,000 sf 100% 1Q22 2Q24 3Q24 $125,000 (3) TBD $1,000 50% T. Rowe Price Under Development Chronicle Mill Belmont, NC Multifamily 238 units / 8,600 sf - 1Q21 3Q22 2Q24 54,000 35,100 5,000 85% (4) Harrisonburg Multifamily Harrisonburg, VA Multifamily 228 units - TBD TBD TBD 45,000 TBD - 100% Solis Gainesville Gainesville, GA Multifamily 223 units - 3Q20 2Q22 3Q23 52,000 31,000 12,000 95% (4) Southern Post Roswell, GA Mixed-use 138 units / 137,000 sf - TBD TBD TBD 95,000 TBD 10,000 100% Total Projects Under Development $246,000 $66,100 $27,000 Delivered Not Stabilized Premier Retail (Town Center Phase VI) Virginia Beach, VA Retail 39,000 sf 82% 4Q16 3Q18 4Q21 $18,000 $8,000 $16,000 100% Williams-Sonoma, Pottery Barn Wills Wharf Baltimore, MD Office 327,000 sf 49% 3Q18 2Q20 2Q22 120,000 76,000 108,000 100% Canopy by Hilton, EY Total Projects Delivered Not Stabilized $138,000 $84,000 $124,000 Predevelopment or On Hold Columbus Village II Virginia Beach, VA Mixed-use TBD - TBD TBD TBD TBD TBD - 100% Parcel 4 Mixed-use Baltimore, MD Mixed-use/ Garage TBD - TBD TBD TBD TBD TBD - 60% (5) Ten Tryon Charlotte, NC Mixed-use 220,000 sf - TBD TBD TBD TBD TBD $9,000 80% (4)
19MEZZANINE INVESTMENTS $ IN THOUSANDS (1) Represents estimates that may change as the development process proceeds. (2) Intend to acquire during the first quarter of 2021. (3) Stopped GAAP recognition of mezzanine income as of 4/1/20. (4) 100% preferred equity, with economic terms and accounting consistent with a mezzanine loan. The Interlock Atlanta, GA Solis Apartments at Interlock Atlanta, GA Schedule (1) Outstanding Investments Property Type Estimated (1) % Leased or LOI Initial Occupancy Loan Maturity Interest Rate Principal Mezzanine Financing Mezzanine Interest QTD Delray Plaza (Whole Foods) (2) Delray Beach, FL Retail 83,000 sf 100% 3Q19 2Q21 15% (3) $12,000 $ - The Interlock Atlanta, GA Mixed-use 300,000 sf 58% 4Q20 3Q22 15% 67,000 2,573 Solis Apartments at Interlock Atlanta, GA Multifamily 349 units NA 4Q20 3Q22 13% 23,500 860 Solis Nexton (4) Summerville, SC Multifamily 320 units NA 4Q22 TBD 11% 23,000 - Total $125,500 $3,433 Mezzanine Interest Expense (542) Net Mezzanine Interest Income $2,891
20ACQUISITIONS & DISPOSITIONS $ IN THOUSANDS (1) Contractual purchase price. (2) Value of OP Units/common stock at issuance. (3) Anchor tenant vacated 12/31/16, which would represent a 2.5% cash capitalization rate. (4) Includes JV interest in the property. ACQUISITIONS Properties Location Square Feet/Units Purchase Price (1) Reinvested 1031 Proceeds $ Value of OP Units/Stock (2) Cash Cap Rate Purchase Date Anchor Tenants Edison Apartments Richmond, VA 174 units $25,700 $ - $7,600 6.8% 4Q20 NA Thames Street Wharf Baltimore, MD 263,426 101,000 - - 7.1% 2Q19 Morgan Stanley, JHU Medical Red Mill Commons & Marketplace at Hilltop Virginia Beach, VA 488,865 105,000 - 63,755 7.7% 2Q19 T.J. Maxx, Homegoods, Total Wine, Walgreens Wendover Village III Greensboro, NC 5,286 2,783 2,424 - 9.2% 1Q19 Verizon Lexington Square Lexington, SC 85,531 26,758 - 2,769 6.7% 3Q18 Lowes Foods Parkway Centre Moultrie, GA 61,200 11,200 - 1,624 6.4% 1Q18 Publix Indian Lakes Virginia Beach, VA 71,020 14,700 - - 7.1% 1Q18 Harris Teeter, Wawa Wendover Village Outparcel Greensboro, NC 35,895 14,300 7,900 - 7.7% 3Q17 Panera, Rooms to Go Kids Renaissance Square Davidson, NC 80,468 17,085 - - 7.1% 4Q16 Harris Teeter Columbus Village II Virginia Beach, VA 92,061 26,200 - 26,200 5.6% 4Q16 Regal, Bed Bath & Beyond Southshore Shops Midlothian, VA 40,333 9,160 - 2,475 7.8% 3Q16 Buffalo Wild Wings Southgate Square Colonial Heights, VA 220,131 38,585 - 17,485 7.3% 2Q16 PetSmart, Michael's, Burlington Retail Portfolio (11 properties) Mid-Atlantic 1,082,681 170,500 87,000 - 7.2% 1Q16 Harris Teeter, Bed Bath & Beyond Providence Plaza Charlotte, NC 103,118 26,200 14,000 - 7.3% 3Q15 Chipotle Socastee Commons Myrtle Beach, SC 57,573 8,600 3,600 - 7.3% 3Q15 BiLo Columbus Village Virginia Beach, VA 65,746 21,025 - 14,025 6.4% 3Q15 Barnes & Noble Perry Hall Marketplace & Stone House Square Maryland 182,949 39,555 15,200 4,155 7.4% 2Q15 Safeway & Weis Markets Dimmock Square Colonial Heights, VA 106,166 19,662 - 9,662 7.3% 3Q14 Old Navy, Best Buy Total/Weighted Average 3,042,449/ 174 units $678,013 130,124$ 149,750$ 7.2% DISPOSITIONS Properties Location Square Feet/Units Sale Price Cash Proceeds Gain on Sale Cash Cap Rate Disposition Date Anchor Tenants Hanbury 7-Eleven Chesapeake, VA 3,117 $2,900 $2,800 $2,400 5.5% 1Q21 7-Eleven Hanbury Walgreens Chesapeake, VA 14,820 7,300 7,000 3,558 6.1% 3Q20 Walgreens Retail Portfolio (7 properties) Mid-Atlantic 630,780 90,000 88,000 2,776 7.8% 2Q20 Harris Teeter, Food Lion, Weis Markets, Office Max Lightfoot Marketplace Williamsburg, VA 124,715 30,275 11,800 4,477 (4) 5.8% 3Q19 Harris Teeter Indian Lakes Wawa Virginia Beach, VA 6,047 4,400 4,400 - 5.4% 2Q18 Wawa Commonwealth of VA Buildings Virginia Beach & Chesapeake, VA 47,366 13,150 8,000 4,194 6.8% 3Q17 Commonwealth of VA Greentree Wawa Chesapeake, VA 5,088 4,600 4,400 3,396 5.0% 1Q17 Wawa Oyster Point (3) Newport News, VA 100,139 6,500 - 3,793 16.4% 3Q16 GSA Non-Core Retail Portfolio Various 174,758 12,850 12,600 (27) 7.1% 2Q16 - 3Q16 Kroger, Family Dollar Richmond Tower Richmond, VA 206,969 78,000 77,000 26,674 7.9% 1Q16 Williams Mullen Oceaneering Chesapeake, VA 154,000 30,000 10,000 4,987 6.7% 4Q15 Oceaneering International Whetstone Apartments Durham, NC 203 units 35,625 17,600 7,210 5.7% 2Q15 NA Sentara Will iamsburg Williamsburg, VA 49,200 15,450 15,200 6,197 6.3% 1Q15 Sentara Virginia Natural Gas Virginia Beach, VA 31,000 8,900 7,400 2,211 6.3% 4Q14 Virginia Natural Gas Total/Weighted Average 1,547,999 sf/ 203 units $339,950 $266,200 $71,846 7.2%
21CONSTRUCTION BUSINESS SUMMARY $ IN THOUSANDS Gross Profit Summary Q4 2020 Trailing 12 Months Revenue $53,863 $217,146 Expense (52,071) (209,472) Gross Profit $1,792 $7,674 (Unaudited) 27th Street Virginia Beach, VA Highlighted Projects Location Total Contract Value Work in Place as of 12/31/2020 Backlog Estimated Date of Completion The Interlock Atlanta, GA $96,290 $91,908 $4,382 1Q 2021 27th Street Garage and Apartments Virginia Beach, VA 81,009 57,973 23,036 3Q 2021 Solis Apartments at Interlock Atlanta, GA 65,243 60,775 4,468 1Q 2021 Holly Springs Apartments Holly Springs, NC 34,785 13,531 21,254 3Q 2021 Sub Total $277,327 $224,187 $53,140 All Other Projects 329,599 311,481 18,118 Total $606,926 $535,668 $71,258
22SAME STORE NOI BY SEGMENT $ IN THOUSANDS (RECONCILIATION TO GAAP LOCATED IN APPENDIX ON PG. 36) (1) See page 33 for Same Store vs. Non – Same Store Properties. (2) Excludes expenses associated with the Company’s in-house asset management division of $0.6M and $0.5M for the 3 months ended 12/31/2020 & 12/31/2019, respectively, and $1.5M and $1.3M for the 12 months ended 12/31/20 & 12/31/19, respectively. Three months ended Year ended 12/31/2020 12/31/2019 $ Change % Change 12/31/2020 12/31/2019 $ Change % Change Office (1) (Unaudited) (Unaudited) Revenue $10,167 $10,048 $119 1.2% $21,044 $21,239 ($195) -0.9% Rental Expenses (2) 2,317 2,462 (145) -5.9% 5,551 5,600 (49) -0.9% Real Estate Taxes 1,302 1,127 175 15.5% 2,220 2,135 85 4.0% Net Operating Income $6,548 $6,459 $89 1.4% $13,273 $13,504 ($231) -1.7% Retail (1) Revenue $16,006 $16,560 ($554) -3.3% $49,171 $51,970 ($2,799) -5.4% Rental Expenses (2) 2,296 2,307 (11) -0.5% 6,744 7,198 (454) -6.3% Real Estate Taxes 1,621 1,571 50 3.2% 5,583 5,484 99 1.8% Net Operating Income $12,089 $12,682 ($593) -4.7% $36,844 $39,288 ($2,444) -6.2% Multifamily (1) Revenue $9,806 $9,830 ($24) -0.2% $21,542 $21,849 ($307) -1.4% Rental Expenses (2) 3,336 3,427 (91) -2.7% 7,004 7,069 (65) -0.9% Real Estate Taxes 1,105 821 284 34.6% 2,153 1,597 556 34.8% Net Operating Income $5,365 $5,582 ($217) -3.9% $12,385 $13,183 ($798) -6.1% Same Store Net Operating Income (NOI) $24,002 $24,723 ($721) -2.9% $62,502 $65,975 ($3,473) -5.3% GAAP Adjustments (1,130) (795) (335) (2,038) (1,551) (487) $22,872 $23,928 ($1,056) -4.4% $60,464 $64,424 ($3,960) -6.1% NOI, Cash Basis Office $6,234 $6,041 $193 3.2% $13,302 $12,673 $629 5.0% Retail 11,517 12,334 (817) -6.6% 34,986 38,894 (3,908) -10.0% Multifamily 5,121 5,552 (431) -7.8% 12,176 12,857 (681) -5.3% $22,872 $23,928 ($1,056) -4.4% $60,464 $64,424 ($3,960) -6.1% NOI: Office $6,548 $6,459 $89 1.4% $13,273 $13,504 ($231) -1.7% Retail 12,089 12,682 (593) -4.7% 36,844 39,288 (2,444) -6.2% Multifamily 5,365 5,582 (217) -3.9% 12,385 13,183 (798) -6.1% $24,002 $24,723 ($721) -2.9% $62,502 $65,975 ($3,473) -5.3% Same store portfolio NOI, cash basis excluding deferred rent collected of ($0.7M) and deferred rent of $1.5M for three month and year ended 12/31/20, respectively
23TOP 10 TENANTS BY ABR (1) $ IN THOUSANDS AS OF DECEMBER 31, 2020 (1) Includes leases from the development and redevelopment properties that have been delivered, but not yet stabilized. (2) Excludes 9.3K SF Morgan Stanley lease at Armada Hoffler Tower expiring in 2023. Inclusive of both leases, Morgan Stanley contributes $5.9M of ABR. (3) Tenants with known terminations (see table on page 16) have been removed. Office Portfolio Tenant Number of Leases Lease Expiration Annualized Base Rent % of Office Portfolio Annualized Base Rent % of Total Portfolio Annualized Base Rent Morgan Stanley⁽²⁾ 1 2027 $ 5,592 14.8% 3.6% Clark Nexsen 1 2029 2,692 7.1% 1.7% WeWork 1 2034 2,065 5.5% 1.3% Duke University 1 2029 1,579 4.2% 1.0% Huntington Ingalls 1 2029 1,544 4.1% 1.0% Mythics 1 2030 1,211 3.2% 0.8% Johns Hopkins Medicine 1 2023 1,149 3.0% 0.7% Pender & Coward 1 2030 926 2.4% 0.6% Kimley-Horn 1 2027 912 2.4% 0.6% Troutman Sanders 1 2025 889 2.4% 0.6% Top 10 Total $ 18,559 49.1% 11.9% Retail Portfolio (3) Tenant Number of Leases Lease Expiration Annualized Base Rent % of Retail Portfolio Annualized Base Rent % of Total Portfolio Annualized Base Rent Harris Teeter/Kroger 5 2023 - 2035 $ 3,289 5.6% 2.1% Lowes Foods 2 2037 ; 2039 1,976 3.4% 1.3% PetSmart 5 2022 - 2025 1,461 2.5% 0.9% Apex Entertainment 1 2035 1,050 1.8% 0.7% Bed, Bath, & Beyond 2 2022 ; 2025 1,047 1.8% 0.7% Petco 4 2022 - 2030 913 1.6% 0.6% Total Wine & More 2 2024 ; 2027 765 1.3% 0.5% Ross Dress for Less 2 2025 ; 2027 762 1.3% 0.5% TJ Maxx/HomeGoods 3 2022 - 2025 748 1.3% 0.5% Safeway 1 2026 718 1.2% 0.5% Top 10 Total $ 12,729 21.8% 8.3%
24LEASE SUMMARY O F F I C E R E T A I L Renewal Lease Summary GAAP Cash Quarter Number of Leases Signed Net Rentable SF Signed Leases Expiring Net Rentable SF Expiring Contractual Rent per SF Prior Rent per SF Releasing Spread Contractual Rent per SF Prior Rent per SF Releasing Spread Weighted Average Lease Term (yrs) TI & LC TI & LC per SF Q4 2020 2 14,745 1 3,024 $24.81 $22.66 9.5% $24.00 $25.35 -5.3% 4.44 $206,383 $14.00 Q3 2020 - - 1 13,316 - - 0.0% - - 0.0% - - - Q2 2020 3 11,529 1 1,485 33.09 30.47 8.6% 33.72 32.20 4.7% 5.00 70,249 6.09 Q1 2020 1 17,194 4 7,373 32.77 30.32 8.1% 29.75 31.40 -5.3% 8.00 1,004,346 58.41 New Lease Summary (1) Quarter Number of Leases Signed Net Rentable SF Signed Cash Contractual Rent per SF Weighted Average Lease Term TI & LC TI & LC per SF Q4 2020 2 4,032 $25.47 6.83 $238,691 $59.20 Q3 2020 2 8,984 24.98 6.59 525,540 58.50 Q2 2020 - - - - - - Q1 2020 1 3,186 26.50 5.00 112,578 35.34 Renewal Lease Summary GAAP Cash Quarter Number of Leases Signed Net Rentable SF Signed Leases Expiring Net Rentable SF Expiring Contractual Rent per SF Prior Rent per SF Releasing Spread Contractual Rent per SF Prior Rent per SF Releasing Spread Weighted Average Lease Term (yrs) TI & LC TI & LC per SF Q4 2020 20 119,351 14 109,544 15.16 15.87 -4.5% 15.00$ 16.07 -6.7% 7.40 $832,241 $6.97 Q3 2020 16 138,355 7 32,336 16.92 16.33 3.6% 17.40 16.55 5.1% 4.92 98,170 0.71 Q2 2020 14 42,605 8 19,153 22.15 20.57 7.7% 22.10 20.95 5.5% 4.39 41,889 0.98 Q1 2020 3 35,767 16 158,218 13.11 12.98 1.0% 13.15 13.00 1.1% 4.81 74,321 2.08 New Lease Summary (1) Quarter Number of Leases Signed Net Rentable SF Signed Cash Contractual Rent per SF Weighted Average Lease Term (yrs) TI & LC TI & LC per SF Q4 2020 10 71,888 $16.13 8.72 $1,505,862 $20.95 Q3 2020 4 8,425 18.73 5.03 87,499 10.39 Q2 2020 1 1,440 18.00 5.33 5,505 3.82 Q1 2020 7 13,073 18.33 5.24 184,426 14.11 (1) Excludes leases from properties in development.
25OFFICE LEASE EXPIRATIONS AS OF DECEMBER 31, 2020 Square Feet Under Lease % of Portfolio ABR 2,500 or less 3% 2,501-10,000 14% 10,001-20,000 16% 20,001-40,000 21% 40,001-100,000 30% Greater than 100,000 16% Office Portfolio Total 100% (1) Excludes leases from properties in development and delivered, but not yet stabilized. (2) Leases expired on 12/31/20. 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% - 50,000 100,000 150,000 200,000 250,000 300,000 Leased Square Feet % ABR of Office Portfolio Year Number of Leases Expiring Square Footage of Leases Expiring (1) % Portfolio Net Rentable Square Feet Annualized Base Rent (1) % of Portfolio Annualized Base Rent Annualized Base Rent per Leased Square Foot Available - 39,025 3.0% -$ - -$ M-T-M 3 - - 3,600 - - 2020⁽²⁾ 1 3,024 0.2% 70,217 0.2% 23.22 2021 13 23,202 1.8% 739,615 2.1% 31.88 2022 9 47,077 3.6% 1,286,956 3.7% 27.34 2023 12 100,095 7.7% 2,670,834 7.6% 26.68 2024 11 140,377 10.7% 3,475,309 9.9% 24.76 2025 18 142,117 10.9% 4,197,927 12.0% 29.54 2026 10 69,204 5.3% 1,769,764 5.0% 25.57 2027 6 256,477 19.6% 7,395,640 21.1% 28.84 2028 8 71,410 5.5% 2,065,401 5.9% 28.92 2029 7 242,709 18.6% 6,265,518 17.9% 25.81 2030 6 107,801 8.3% 3,050,777 8.7% 28.30 Thereafter 2 63,415 4.8% 2,102,914 5.9% 33.16 Total / Weighted Average 106 1,305,933 100.0% 35,094,472$ 100.0% 27.70$
26RETAIL LEASE EXPIRATIONS AS OF DECEMBER 31, 2020 (1) Excludes leases from properties in development and delivered, but not yet stabilized. (2) Leases expired on 12/31/20 (3) 34k square feet of expirations at Wendover Village are released, but new expiration is not reflected here. 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Leased Square Feet % ABR of Retail Portfolio Square Feet Under Lease % of Portfolio ABR 2,500 or less 15% 2,501-10,000 33% 10,001-20,000 14% 20,001-40,000 15% 40,001-100,000 22% Greater than 100,000 1% Retail Portfolio Total 100% Year Number of Leases Expiring Square Footage of Leases Expiring (1) % Portfolio Net Rentable Square Feet Annualized Base Rent (1) % of Portfolio Annualized Base Rent Annualized Base Rent per Leased Square Foot Available - 194,714 5.3% -$ - -$ M-T-M 1 1,400 - 25,550 - 18.25 2020⁽²⁾ 3 9,399 0.3% 144,030 0.2% 15.32 2021⁽³⁾ 56 311,097 8.5% 3,981,597 6.9% 12.80 2022 72 331,321 9.1% 5,470,947 9.5% 16.51 2023 62 419,890 11.5% 6,698,570 11.6% 15.95 2024 80 383,309 10.5% 7,168,907 12.4% 18.70 2025 88 611,257 16.7% 8,496,725 14.7% 13.90 2026 46 282,977 7.8% 5,538,232 9.6% 19.57 2027 27 162,602 4.5% 3,400,198 5.9% 20.91 2028 21 95,105 2.6% 1,600,359 2.8% 16.83 2029 24 104,871 2.9% 2,198,752 3.8% 20.97 2030 26 197,820 5.4% 3,827,482 6.6% 19.35 Thereafter 31 545,451 14.9% 9,126,889 16.0% 16.73 Total / Weighted Average 537 3,651,213 100.0% 57,678,238$ 100.0% 16.69$
27OVERALL COLLECTIONS (1) 4 Q 2 0 C O L L E C T I O N S ( 2 ) 4 Q 2 0 T O P 2 0 C O L L E C T I O N S ( 2 ) (1) Data reported relates to rent charges and collections through 1/31/21 and does not correspond to the reporting segment classification of the properties as a whole. (2) As a percentage of 4Q20 rent and recovery charges due. Collected Outstanding AS OF JANUARY 31, 2021 100%98% 1% 1% $ in Thousands COLLECTIONS BY SECTOR OFFICE MULTIFAMILY RETAIL TOTAL Period $ % $ % $ % $ % 2Q20 $ 9,810 100% $10,528 99% $12,392 74% $ 32,730 88% 3Q20 $ 9,895 100% $12,187 98% $15,261 93% $ 37,343 96% 4Q20 $ 10,143 100% $14,276 99% $16,196 96% $ 40,615 98% TOTAL $ 29,848 100% $36,991 99% $43,849 88% $ 110,688 94% Jan-21 $ 3,473 100% $ 4,946 98% $ 5,345 95% $ 13,764 97%
28COVID-19 EFFECT AS OF JANUARY 31, 2021 $ in Thousands Repayment Period 2021 2022 $1,780 $1,500 $280 Deferred Rent Outstanding⁽¹⁾ 93% 76% 7% 24% 2020 YTD Jan 2021 T o t a l D e f e r r a l s ( 1 )T o t a l D e f e r r e d R e n t C o l l e c t i o n s Repayment OutstandingDeferred Rent Recovered deferred rent due collected in 202093% (1) Excludes 2 Regal Cinemas leases. Period Deferred Rent Due Deferred Rent Collected Repayment Outstanding 2020 YTD $ 1,490 $ 1,380 93% $ 110 7% Jan 2021 $ 250 $ 190 76% $ 60 24%
29 APPENDIX D E F I N I T I O N S & R E C O N C I L I AT I O N S Town Center Virginia Beach, VA
30DEFINITIONS FUNDS FROM OPERATIONS: We calculate Funds From Operations (“FFO”) in accordance with the standards established by the National Association of Real Estate Investment Trusts (“Nareit”). Nareit defines FFO as net income (loss) (calculated in accordance with accounting principles generally accepted in the United States (“GAAP”)), excluding depreciation and amortization related to real estate, gains or losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. FFO is a supplemental non-GAAP financial measure. Management uses FFO as a supplemental performance measure because it believes that FFO is beneficial to investors as a starting point in measuring our operational performance. Specifically, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, which do not relate to or are not indicative of operating performance, FFO provides a performance measure that, when compared period-over-period, captures trends in occupancy rates, rental rates and operating costs. Other equity REITs may not calculate FFO in accordance with the Nareit definition as we do, and, accordingly, our FFO may not be comparable to such other REITs’ FFO. 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 accordingly, our NOI may not be comparable to such other REITs’ NOI. NOI is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, NOI should not be considered an alternative to cash flows as a measure of liquidity. We consider NOI to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of our real estate business. To calculate NOI on a cash basis, we adjust NOI to exclude the net effects of straight-line rent and the amortization of lease incentives and above/below market rents. 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 debt, impairment of intangible assets and liabilities, mark-to-market adjustments on interest rate derivatives, provision for unrealized credit losses, amortization of right-of-use assets attributable to finance leases, severance related costs, and other non-comparable items. Management believes that the computation of FFO in accordance to Nareit’s definition includes certain items that are not indicative of the results provided by the Company’s operating portfolio and affect the comparability of the Company’s period-over-period performance. Our calculation of Normalized FFO differs from Nareit's definition of FFO. Other equity REITs may not calculate Normalized FFO in the same manner as us, and, accordingly, our Normalized FFO may not be comparable to other REITs' Normalized FFO.
31DEFINITIONS 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 expenditures, non-cash interest expense, proceeds from the sale of a purchase option (in excess of amounts recognized in net income), straight-line rents, cash ground rent payments for finance leases, the amortization of leasing incentives and above (below) market rents and proceeds from government development grants. Management believes that AFFO provides useful supplemental information to investors regarding our operating performance as it provides a consistent comparison of our operating performance across time periods and allows investors to more easily compare our operating results with other REITs. However, other REITs may use different methodologies for calculating AFFO or similarly entitled FFO measures and, accordingly, our AFFO may not always be comparable to AFFO or other similarly entitled FFO measures of other REITs. 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, impairment of real estate assets, debt extinguishment losses, non-cash stock compensation and mark-to-market adjustments on interest rate derivates, other one time adjustments including non-recurring bad debt and termination fees, and including cash ground rent payments for finance leases. Management believes Adjusted EBITDA is useful to investors in evaluating and facilitating comparisons of our operating performance between periods and between REITs by removing the impact of our capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from our operating results along with other non-comparable items. CORE EBITDA: We calculate Core EBITDA as Adjusted EBITDA, excluding certain items, including, but not limited to, the impact of redevelopment and development pipeline projects that are still in lease-up. We generally consider a property to be in lease-up until the earlier of (i) the quarter after which the property reaches 80% occupancy or (ii) the thirteenth quarter after the property receives its certificate of occupancy. Management believes that Core EBITDA provides useful supplemental information to investors regarding our reoccurring operating performance as it provides a consistent comparison of our operating performance across time periods and allows investors to more easily compare our operating results with other REITs. However, other REITs may use different methodologies for calculating Core EBITDA or similarly entitled measures and, accordingly, our Core EBITDA may not always be comparable to Core EBITDA or other similarly entitled measures of other REITs. CORE DEBT: We calculate Core Debt as our total debt, excluding loans associated with our development pipeline, cash & cash equivalents, and restricted cash.
32DEFINITIONS 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 or (ii) the thirteenth quarter after the property receives its certificate of occupancy. Additionally, any property that is fully or partially taken out of service for the purpose of redevelopment is no longer considered stabilized until the redevelopment activities are complete, the asset is placed back into service, and the stabilization criteria above are again met. A property may also be fully or partially taken out of service as a result of a disposition, depending on the significance of the portion of the property disposed. Finally, any property classified as Held for Sale is taken out of service for the purpose computing same store operating results. The following table shows the properties included in the same store and non-same store portfolio for the comparative periods presented.
33S A M E S TO R E V S . N O N - S A M E S TO R E P R O P E R T I E S Same Store Non-Same Store Same Store Non-Same Store Same Store Non-Same Store Same Store Non-Same Store Retail Properties Retail Properties (Continued) 249 Central Park Retail X X South Retail X X Apex Entertainment X X South Square X X Broad Creek Shopping Center X X Southgate Square X X Broadmoor Plaza X X Southshore Shops X X Brooks Crossing (Retail) X X Studio 56 Retail X X Columbus Village X X Tyre Neck Harris Teeter X X Columbus Village II X X Wendover Village X X Commerce Street Retail X X Wendover Village II X X Courthouse 7-Eleven X X Wendover Village III X X Dimmock Square X X Office Properties Fountain Plaza Retail X X 4525 Main Street X X Greentree Shopping Center X X Armada Hoffler Tower X X Hanbury Village X X Brooks Crossing (Office) X X Harrisonburg Regal X X One City Center X X Lexington Square X X One Columbus X X Market at Mill Creek X X Thames Street Wharf X X Marketplace at Hilltop X X Two Columbus X X Nexton Square X X Wills Wharf X X North Hampton Market X X Multifamily Properties North Point Center X X 1405 Point X X Oakland Marketplace X X Edison Apartments X X Parkway Centre X X Encore Apartments X X Parkway Marketplace X X Greenside Apartments X X Patterson Place X X Hoffler Place X X Perry Hall Marketplace X X Johns Hopkins Village X X Premier Retail X X Liberty Apartments X X Providence Plaza X X Premier Apartments X X Red Mill Commons X X Residences at Annapolis Junction X X Sandbridge Commons X X Smith’s Landing X X Socastee Commons X X Summit Place X X The Cosmopolitan X X Year Ended 12/31/2020 to 2019 Three Months Ended 12/31/2020 to 2019 Three Months Ended 12/31/2020 to 2019 Year Ended 12/31/2020 to 2019
34 R E C O N C I L I AT I O N O F A D J U S T E D E B I T D A , C O R E E B I T D A , A N D C O R E D E B T ( 1 ) $ IN THOUSANDS (1) See definitions on page 31. (2) Adjusted for the depreciation and interest expense attributable to noncontrolling interests in consolidated investments. (3) Excludes non-recurring items. (4) Bad debt resulting from Company’s decision to terminate two defaulted Regal Cinemas leases. (5) Adjusts bad debt to an annualized $3 million – Management’s Estimates. (6) Excludes GAAP Adjustments. Three months ended 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 Net income attributable to common stockholders and OP unit holders $1,851 $8,651 $11,178 $8,160 $7,215 Excluding: Depreciation and amortization (2) 17,678 14,131 13,644 14,092 15,285 Gain on operating real estate dispositions - (3,612) (2,776) - - Income tax provision (benefit) (63) (28) 65 (257) (152) Interest expense (2) 7,815 7,249 6,904 7,805 8,359 Change in fair value of derivatives and other (294) (318) 6 1,736 (327) Preferred dividends 2,887 2,220 1,175 1,067 1,067 Loss on extinguishment of debt - - - - 30 GAAP adjustments related to finance leases 160 160 158 160 159 Non-Recurring Bad Debt - 1,100 (4) 450 (5) - - Unrealized credit loss provision (release) 29 (33) (117) 377 - Non-cash stock compensation 471 456 421 1,030 274 Adjusted EBITDA (3) $30,534 $29,976 $31,108 $34,170 $31,910 Development/Redevelopment: Premier Retail (202) (223) (207) (210) (115) Wills Wharf (678) (633) - - - The Cosmopolitan Apartments - (981) (878) (923) (904) Summit Place - (388) - - - Other Development - - - - 9 Total Development/Redevelopment (880) (2,225) (1,085) (1,133) (1,010) Dispositions completed intra-quarter - (80) (1,351) - - Acquisitions completed intra-quarter (961) (75) - - - Core EBITDA $28,693 $27,596 $28,672 $33,037 $30,900 Annualized Core EBITDA $114,770 $110,382 $114,689 $132,148 $123,600 Total debt (6) $962,812 $885,359 $956,726 $1,016,293 $960,819 (Less) Development/Redevelopment Premier Retail (8,241) (8,250) (8,250) (8,250) (8,250) Wills Wharf (59,044) (57,585) (53,660) (45,759) (29,154) Solis Gainesville - - - - - The Cosmopolitan Apartments - (43,110) (43,309) (43,506) (43,702) Summit Place - (34,615) (32,289) (30,135) (28,824) Other Development - - - - - Total Development/Redevelopment (67,285) (143,560) (137,508) (127,650) (109,930) (Less) Net Acquisitions completed intra-quarter (84,375) (22,909) - - - (Less) Cash & restricted cash (50,430) (79,224) (75,111) (52,788) (43,579) Core Debt $760,722 $639,666 $744,107 $835,855 $807,310
35R E CONCIL IAT ION TO PROPE RT Y PORTFOL IO NOI $ IN THOUSANDS (1) See page 33 for the Same Store vs. Non-Same Store properties. (2) Includes expenses associated with the Company’s in-house asset management division. Three months ended 12/31 Year ended 12/31 2020 2019 2020 2019 Office Same Store (1) Rental revenues $10,167 $10,048 $21,044 $21,239 Property expenses 3,619 3,589 7,771 7,735 NOI 6,548 6,459 13,273 13,504 Non-Same Store NOI (2) 525 (187) 14,311 7,572 Segment NOI $7,073 $6,272 $27,584 $21,076 Retail Same Store (1) Rental revenues $16,006 $16,560 $49,171 $51,970 Property expenses 3,917 3,878 12,327 12,682 NOI 12,089 12,682 36,844 39,288 Non-Same Store NOI (2) 1,411 2,541 17,375 18,732 Segment NOI $13,500 $15,223 $54,219 $58,020 Multifamily Same Store (1) Rental revenues $9,806 $9,830 $21,542 $21,849 Property expenses 4,441 4,248 9,157 8,666 NOI 5,365 5,582 12,385 13,183 Non-Same Store NOI (2) 2,847 734 15,204 9,766 Segment NOI $8,212 $6,316 $27,589 $22,949 Total Property Portfolio NOI $28,785 $27,811 $109,392 $102,045
36RECONCILIATION TO GAAP NET INCOME $ IN THOUSANDS Office Retail Multifamily Total Rental Properties General Contracting & Real Estate Services Total Segment revenues 11,352$ 18,238$ 15,058$ 44,648$ 53,863$ 98,511$ Segment expenses 4,279 4,738 6,846 15,863 52,071 67,934 Net operating income 7,073$ 13,500$ 8,212$ 28,785$ 1,792$ 30,577$ Depreciation and amortization (17,740) General and administrative expenses (3,523) Acquisition, development and other pursuit costs (29) Impairment charges (461) Gain on real estate dispositions - Interest income 3,786 Interest expense (7,868) Interest expense - finance leases (229) Unrealized credit loss release (provision) (29) Amortization of right-of-use assets - finance leases (146) Change in fair value of derivatives and other 294 Other income (6) Income tax benefit 63 Net income 4,689$ Net loss attributable to noncontrolling interest in investment entities 49 Preferred stock dividends (2,887) Net income attributable to AHH and OP unit holders 1,851$ Office Retail Multifamily Total Rental Properties General Contracting & Real Estate Services Total Segment revenues 43,494$ 73,032$ 49,962$ 166,488$ 217,146$ 383,634$ Segment expenses 15,910 18,813 22,373 57,096 209,472 266,568 Net operating income 27,584$ 54,219$ 27,589$ 109,392$ 7,674$ 117,066$ Depreciation and amortization (59,972) General and administrative expenses (12,905) Acquisition, development and other pursuit costs (584) Impairment charges (666) Gain on real estate dispositions 6,388 Interest income 19,841 Interest expense (30,120) Interest expense - finance leases (915) Unrealized credit loss release (provision) (256) Amortization of right-of-use assets - finance leases (586) Change in fair value of derivatives and other (1,130) Other income 515 Income tax benefit 283 Net income 36,959$ Net loss attributable to noncontrolling interest in investment entities 230 Preferred stock dividends (7,349) Net income attributable to AHH and OP Unitholders 29,840$ Three months ended 12/31/2020 Year ended 12/31/2020
1CLICK TO EDIT MASTER TITLE STYLE
2 PAGE 03 FORWARD-LOOKING STATEMENTS 04 2021 OUTLOOK & ASSUMPTIONS 05 EVOLVING PORTFOLIO GAAP NOI COMPOSITION 06 NOI CONTRIBUTION BY LOCATION 07 LEASING ACTIVITY 08 CORE OPERATING PORTFOLIO OCCUPANCY 09 DEVELOPMENT VALUE CREATION 10 GENERAL CONTRACTING AND REAL ESTATE SERVICES 11 MEZZANINE INVESTMENT PROGRAM 12 ANTICIPATED INCOME COMPOSITION 13 DEBT MATURITIES 14 COVID UPDATE 16 HARBOR POINT DEVELOPMENT 17 SOLIS GAINESVILLE 18 CHRONICLE MILL 19 WILLS WHARF 20 SOLIS NEXTON TABLE OF CONTENTS SECTION
3FORWARD-LOOKING STATEMENTS This presentation should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated February 11, 2021, which has been furnished as Exhibit 99.1 to our Form 8-K filed on February 11, 2021. The Company makes statements that are 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 (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). In particular, statements pertaining to our capital resources, portfolio performance and results of operations contain forward-looking statements. Likewise, all of our statements regarding our 2021 outlook and related assumptions, projections, anticipated growth in our funds from operations, normalized funds from operations, adjusted funds from operations, funds available for distribution and net operating income are forward-looking statements. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and the Company may not be able to realize them. The Company does not guarantee that the transactions and events described will happen as described (or that they will happen at all). For further discussion of risk factors and other events that could impact our future results, please refer to the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), and the documents subsequently filed by us from time to time with the SEC, including the company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020. The Company's actual future results and trends may differ materially from expectations depending on a variety of factors discussed in the Company's filings with the SEC. These factors include, without limitation: (a) the impact of the coronavirus (COVID-19) pandemic on macroeconomic conditions and economic conditions in the markets in which the Company operates, including, among others: (i) disruptions in, or a lack of access to, the capital markets or disruptions in the Company's ability to borrow amounts subject to existing construction loan commitments; (ii) adverse impacts to the Company's tenants' and other third parties' businesses and financial condition that adversely affect the ability and willingness of the Company's tenants and other third parties to satisfy their rent and other obligations to the Company, including deferred rent; (iii) the ability and willingness of the Company's tenants to renew their leases with the Company upon expiration of the leases or to re-lease the Company's properties on the same or better terms in the event of nonrenewal or early termination of existing leases; and (iv) federal, state and local government initiatives to mitigate the impact of the COVID-19 pandemic, including additional restrictions on business activities, shelter-in place orders and other restrictions, and the timing and amount of economic stimulus or other initiatives; (b) the Company's ability to continue construction on development and construction projects, in each case on the timeframes and on terms currently anticipated; (c) uncertainty regarding the timing of distribution and effectiveness of COVID-19 vaccines; (d) the Company's ability to accurately assess and predict the impact of the COVID-19 pandemic on its results of operations, financial condition, dividend policy, acquisition and disposition activities and growth opportunities; and (e) the Company's ability to maintain compliance with the covenants under its existing debt agreements or to obtain modifications to such covenants from the applicable lenders. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company's expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required by applicable law. The Company does not provide a reconciliation for its guidance range of Normalized FFO per diluted share to net income per diluted share, the most directly comparable forward-looking GAAP financial measure, because it is unable to provide a meaningful or accurate estimate of reconciling items and the information is not available without unreasonable effort as a result of the inherent difficulty of forecasting the timing and/or amounts of various items that would impact net income per diluted share. For the same reasons, the Company is unable to address the probable significance of the unavailable information and believes that providing a reconciliation for its guidance range of Normalized FFO per diluted share would imply a degree of precision for its forward-looking net income per diluted share that could be misleading to investors.
42021 OUTLOOK & ASSUMPTIONS LOW HIGH Total NOI $116.3M $117.3M Construction Segment Gross Profit $4.0M $5.3M G&A Expenses $14.3M $14.8M Mezzanine Interest Income $17.7M $18.1M Interest Expense $31.0M $31.7M Normalized FFO Per Diluted Share $0.98 $1.02 GUIDANCE ASSUMPTIONS • Acquisition of Delray Beach Plaza Whole Foods in the first quarter • New $23M preferred equity mezzanine loan for Solis Nexton beginning 2Q21 (see slide 20 in the Guidance Presentation) • Disposition of a Kroger-anchored shopping center in the second quarter for $5.5M • Interest expense based on Forward LIBOR Curve, which forecasts rates ending the year at 0.15% • Opportunistic sale of common stock through the ATM program, resulting in a full year weighted average share count of 82.5M
5EVOLVING PORTFOLIO GAAP NOI COMPOSITION 2020 2021 Guidance Midpoint Retail Entertainment & Mixed-Use Retail Multifamily Office Projected Property Segment NOI Fully Stabilized (2)(3) (1) Includes AHH rent and excludes expenses associated with the Company’s in house asset management division. (2) Fully Stabilized Portfolio assumes announced pipeline is delivered and stabilized per schedule (see page 9 for schedule). (3) Includes NOI from AHH portion of joint venture to develop T. Rowe Price Global HQ and excludes all predevelopment projects. $ in millions 43% 6% 26% 25% 37% 7%26% 30% PORTFOLIO COMPOSITION (1) 2020 2021 GUIDANCE MIDPOINT FULLY STABILIZED (2)(3) RETAIL $49 $45 $51 ENTERTAINMENT & MIXED-USE RETAIL $7 $8 $10 OFFICE $30 $30 $47 MULTIFAMILY $28 $36 $52 TOTAL $114 $119 $160 Fully stabilized portfolio expected to bring over 40% of NOI growth
6 TOWN CENTER OF VIRGINIA BEACH 42% OTHER VIRGINIA 50% NORTH CAROLINA 8% NOI CONTRIBUTION BY LOCATION (1) Fully Stabilized Portfolio assumes announced pipeline is delivered and stabilized per schedule (see page 9 for schedule). 2013 (24 properties) PROJECTED PORTFOLIO FULLY STABILIZED(1) (62 properties)
7LEASING ACTIVITY HARRISONBURG MULTIFAMILY Located nearby James Madison University in Harrisonburg, VA, this is a 228-unit multifamily project with an adjacent 342 space parking garage. The on-site Regal Cinemas and surface level parking will remain open and operating throughout this development. Leasing Activity Signed 56,815 At Lease 46,282 Total 103,097 Significant Known Terminations Tenant Property Effective Termination Date SF Impact LOI or at Lease Activity/Opportunity Bed, Bath, & Beyond North Point Center 1/31/2021 30,000 Full space under LOI negotiations Bed, Bath, & Beyond Wendover Village 1/31/2021 33,696 33,696 100% re-leased as-is Regal Cinemas Columbus Village II 10/20/2020 51,545 51,545 100% re-leased to Regal with development rights Regal Cinemas Harrisonburg Regal 10/25/2020 49,000 49,000 100% re-leased to Regal with multifamily development rights Total Significant Known Terminations 164,241 134,241 Total 237,338
8CORE OPERATING PORTFOLIO OCCUPANCY(1) (1) As of 12/31 of respective year. (2) Estimated occupancy as of 12/31/21. 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 E ⁽² ⁾ 50% 60% 70% 80% 90% 100% Average Occupancy Since IPO 95%
9DEVELOPMENT VALUE CREATION (1) For our ownership structure, see page 18 & 19 of the 4Q20 Supplemental package. (2) Timing and investment amounts are estimates and subject to change as the development process demands. (3) Reflects AHH portion of joint venture cost. (4) AHH receives preferred return on investment. T. Rowe Project Development/ Redevelopment Value PROJECT (1) PROPERTY TYPE INITIAL OCCUPANCY (2) TOTAL COST (2) UNCONSOLIDATED JOINT VENTURE T. Rowe Price Global HQ Baltimore, MD Office 2Q24 $125M (3) DEVELOPMENT Chronicle Mill Belmont, NC Multifamily 3Q22 85% (4) $54M Harrisonburg Multifamily Harrisonburg, VA Multifamily TBD 100% $45M Solis Gainesville Gainesville, GA Multifamily 2Q22 95% (4) $52M Southern Post Roswell, GA Mixed-Use TBD 100% $95M DELIVERED NOT STABILIZED Premier Retail Virginia Beach, VA Retail 3Q18 $18M Wills Wharf Baltimore, MD Office 2Q20 $120M PRE-DEVELOPMENT (not included in value creation) Columbus Village II Virginia Beach, VA Mixed-Use TBD 100% TBD Parcel 4 Mixed-Use (Unconsolidated JV) Baltimore, MD Mixed-use/ Garage TBD 60% TBD Ten Tryon Charlotte, NC Mixed-Use TBD 80% (4) TBD 100% AHH Ownership 100% 50%
10GENERAL CONTRACTING AND REAL ESTATE SERVICES Third-Party Construction Backlog As of 12/31/20 $71M $ in thousands, unless otherwise stated (1) 2018 3rd party gross profit includes $3.4M sale of build-to-suit distribution center. THIRD-PARTY GROSS PROFIT - $ 50,000 $ 100,000 $ 150,000 $ 200,000 $ 250,000 $ 300,000 2013 2014 2015 2016 2017 2018⁽¹⁾ 2019 2020 2021E Internal Volume⁽¹⁾ 3rd Party Volume - $ 2,000 $ 4,000 $ 6,000 $ 8,000 2013 2014 2015 2016 2017 2018⁽¹⁾ 2019 2020 2021E 2022 2023 Management's Goal VOLUME TYPICAL THIRD-PARTY CONSTRUCTION GROSS PROFIT $4M-6M
11MEZZANINE INVESTMENT PROGRAM (1) Timing, investment, and income amounts are estimates and subject to change as the development process demands. (2) Does not include Delray Beach Whole Foods due to non-accrual status and expected acquisition in 1Q21. (3) Includes exit fee. (4) 100% preferred equity, with economic terms and accounting consistent with a mezzanine loan. Expected to commence in 2Q21. (5) Management’s goal is $8-10M of mezzanine interest income. MEZZANINE PROGRAM SIZE PROJECT ( 2 ) PRODUCT LOCATION PROJECTED PRINCIPAL MEZZANINE F INANCING ( 1 ) Solis Apartments at Interlock Multifamily Atlanta, GA $23M $4M The Interlock Mixed-Use Atlanta, GA $67M $12M (3) Solis Nexton (4) Multifamily Summerville, SC $23M $2M 2021 ESTIMATED GROSS INTEREST INCOME
12ANTICIPATED INCOME COMPOSITION (1) Assumes announced pipeline is delivered/stabilized (see page 9 for schedule) and operating portfolio maintains 95% occupancy. (2) Includes AHH rent elimination, anticipated Delray Beach Plaza acquisition, NOI from AHH portion of T Rowe Price Global HQ (unconsolidated JV). (3) Excludes expenses associated with the Company’s in house asset management division and all predevelopment projects. (4) Based on management’s goals. $ in millions 2020 2021E 2022 2023 Fully Stabilized Portfolio⁽¹⁾ Construction Income⁽⁴⁾ $ 8 $ 5 $ 5 $ 5 $ 5 Mezz Income⁽⁴⁾ 20 18 12 9 9 Fee Income⁽⁴⁾ 28 23 17 14 14 Portfolio NOI⁽²⁾⁽³⁾ 114 119 128 138 160 Total $ 142 $ 142 $ 145 $ 152 $ 174
13DEBT MATURITIES(1) $ in millions, as of 1/31/21 ~6.2 years 3.4% 2.3x Weighted Average Maturity Weighted Average Interest Rate Fixed Fixed Charge Coverage 2.3% Weighted Average Interest Rate Variable (1) Includes the effect refinancing two loans after 12/31/20. (2) Expect to close on Southgate refinancing in the first quarter of 2021.
14OVERALL COLLECTIONS(1) 4 Q 2 0 C O L L E C T I O N S ( 2 ) 4 Q 2 0 T O P 2 0 C O L L E C T I O N S ( 2 ) (1) Data reported relates to rent charges and collections through 1/31/21 and does not correspond to the reporting segment classification of the properties as a whole. (2) As a percentage of 4Q20 rent and recovery charges due. Collected Outstanding 98% 1% 1% 100% $ in thousands, as of 1/31/21 COLLECTIONS BY SECTOR OFFICE MULTIFAMILY RETAIL TOTAL Period $ % $ % $ % $ % 2Q20 $ 9,810 100% $10,528 99% $12,392 74% $ 32,730 88% 3Q20 $ 9,895 100% $12,187 98% $15,261 93% $ 37,343 96% 4Q20 $ 10,143 100% $14,276 99% $16,196 96% $ 40,615 98% TOTAL $ 29,848 100% $36,991 99% $43,849 88% $ 110,688 94% Jan-21 $ 3,473 100% $ 4,946 98% $ 5,345 95% $ 13,764 97%
15COVID-19 EFFECT T o t a l D e f e r r a l s ( 1 ) Repayment Period 2021 2022 $1,780 $1,500 $280 Deferred Rent Outstanding⁽¹⁾ $ in thousands, as of 1/31/21 Period Deferred Rent Due Deferred Rent Collected Repayment Outstanding 2020 YTD $ 1,490 $ 1,380 93% $ 110 7% Jan 2021 $ 250 $ 190 76% $ 60 24% T o t a l D e f e r r e d R e n t C o l l e c t i o n s 93% 76% 7% 24% 2020 YTD Jan 2021 Repayment OutstandingDeferred Rent Collected deferred rent due collected in 202093% (1) Excludes 2 Regal Cinemas leases.
16HARBOR POINT DEVELOPMENT Cash Equity Commitment from AHH ~$30M Ownership in JV with Beatty Development Group 50% Estimated Cash Construction Fees ~$4-5M T. Rowe Price Global HQ Site Build-To-Suit Office, Complementary Retail, Parking & Public Space Improvements PRE-DEVELOPMENT Parcel 4 Mixed-Use Mixed-Use building including multifamily and retail with structured parking 2 3 14 6 5 1 - Thames Street Wharf 2 - 1405 Point 3 - Wills Wharf 4 - T. Rowe Price Global HQ 5 - Parcel 4 Mixed-Use 6 - Exelon Building Owned 100% by AHH JV with Beatty Development Group Built by AHH (not owned) Unconsolidated Joint Ventures Off Balance Sheet Estimated & Preliminary Total Development Cost $250M
17 $52M total development cost 223 multifamily units Located an hour north of Atlanta, GA, Solis Gainesville will be a $52 million multifamily development joint-venture with our partners, Terwilliger Pappas. This 223-unit development commenced construction during the third quarter of 2020. SOLIS GAINESVILLE
18 Chronicle Mill is a historic textile mill that will be revitalized into a mixed-use project. Located just outside of Charlotte, North Carolina, the project will include 238 apartment units and 8,600 square feet of retail space. A portion of the site is expected to be simultaneously developed into townhomes by another developer. CHRONICLE MILL Belmont, NC location 238 apartment units 8,600 square feet of retail
19 Wills Wharf is an 8-story mixed-use property located in Harbor Point, between Thames Street Wharf, 1405 Point, and the future T. Rowe Price Global Headquarters. Delivered in 2020, Canopy by Hilton and EY are amongst the open tenants at Wills Wharf. $120M Total estimated development cost 100% Ownership 327,000 square feet of mixed-use hotel and class A office space THAMES STREET WHARF WILLS WHARF FUTURE T ROWE PRICE GLOBAL HQ 1405 POINT WILLS WHARF
20 $23M loan contribution 320 multifamily units Solis Nexton is a 320-unit multifamily project located in Summerville, SC. This $23 million preferred equity mezzanine loan with Terwilliger Pappas will complement the recent acquisition of the 127,000 square foot open-air lifestyle center, Nexton Square. SOLIS NEXTON Nexton Square Solis Nexton Nexton Planned Community