0001569187-23-000046 | 10-Q | XBRL Viewer | Armada Hoffler Properties INC

Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of LIBOR Interest Rate Caps and Floating to Fixed Interest Rate Swaps

As of March 31, 2023, the Company had the following London Inter-Bank Offered Rate ("LIBOR"), SOFR, and Bloomberg Short-Term Bank Yield Index ("BSBY") interest rate caps ($ in thousands):

Effective Date

Maturity Date

Notional Amount

Strike Rate

Premium Paid

3/4/2021

4/1/2023

14,479

2.50% (LIBOR)

11/1/2020

11/1/2023

84,375

(a)

1.84% (SOFR)

7/1/2022

1/1/2024

50,000

(a)

1.00%-3.00% (SOFR)

(b)

143

(c)

7/5/2022

1/1/2024

35,100

(a)

1.00%-3.00% (SOFR)

(b)

120

(c)

1/11/2022

2/1/2024

175,000

4.00% (BSBY)

(e)

154

4/7/2022

2/1/2024

175,000

(a)

1.00%-3.00% (BSBY)

(b) (e)

3,595

7/6/2022

3/1/2024

200,000

(a)

1.00%-3.00% (SOFR)

(b)

352

(c)

9/1/2022

9/1/2024

32,822

(a)(d)

1.00%-3.00% (SOFR)

(b)

1,370

Total

766,776

5,829

________________________________________

(a) Designated as a cash flow hedge.

(b) The Company purchased interest rate caps at 1.00% and sold interest rate caps at 3.00%, resulting in interest rate cap corridors of 1.00% and 3.00%. The intended goal of these corridors is to provide a level of protection from the effect of rising interest rates and reduce the all-in cost of the derivative instrument.

(c) This amount represents the sum of the premiums paid on the original instruments. The caps were blended and extended for a net zero premium during the year ended December 31, 2022.

(d) Represents the notional amount as of March 31, 2023. The notional amount is scheduled to increase over the term of the corridor in accordance with projected borrowings on the associated loan. The maximum notional amount that will eventually be in effect is $73.6 million.

(e) Effective April 4, 2023, these interest rate caps were terminated and replaced with a floating-to-fixed interest rate swap, effective April 3, 2023, with a notional amount of $175.0 million and SOFR rate of 1.84%. The interest rate swap will expire on February 1, 2024. The Company did not pay a premium for this transaction.

As of March 31, 2023, the Company held the following floating-to-fixed interest rate swaps ($ in thousands):


Related Debt	Notional Amount			Index		Swap Fixed Rate		Debt effective rate		Effective Date	Expiration Date
Senior unsecured term loan	$	50,000		1-month LIBOR		2.78	%	4.08	%	5/1/2018	5/1/2023
Senior unsecured term loan	32,706		(a)	1-month SOFR	(b)	2.17	%	3.47	%	4/1/2019	8/10/2023
Senior unsecured term loan	10,500		(a)	1-month LIBOR		3.02	%	4.32	%	10/12/2018	10/12/2023
Senior unsecured term loan	25,000		(a)	1-month LIBOR		0.50	%	1.80	%	4/1/2020	4/1/2024
Senior unsecured term loan	25,000		(a)	1-month LIBOR		0.50	%	1.80	%	4/1/2020	4/1/2024
Senior unsecured term loan	25,000		(a)	Daily SOFR	(c)	0.44	%	1.74	%	4/1/2020	4/1/2024
Thames Street Wharf	68,969		(a)	1-month BSBY	(d)	1.05	%	2.35	%	9/30/2021	9/30/2026
M&T unsecured term loan	100,000			1-month SOFR		3.50	%	4.80	%	12/6/2022	12/6/2027
Senior unsecured term loan	100,000			1-month SOFR		3.43	%	4.73	%	12/13/2022	1/21/2028
Total	$	437,175

________________________________________

(a) Designated as a cash flow hedge.

(b) Effective February 1, 2023, this swap was amended to reference the 1-month SOFR index. Prior to the amendment, the swap referenced the 1-month LIBOR index.

(c) Effective February 1, 2023, this swap was amended to reference the Daily SOFR index. Prior to the amendment, the swap referenced the 1-month LIBOR index.

(d) Effective April 3, 2023, this swap was amended to reference the Daily SOFR index with a fixed rate of 0.93%.

Schedule of Derivatives

The Company’s derivatives were comprised of the following as of March 31, 2023 and December 31, 2022 (in thousands):


	March 31, 2023						December 31, 2022
	Notional Amount		Fair Value				Notional Amount		Fair Value
			Asset		Liability				Asset		Liability
Derivatives not designated as accounting hedges
Interest rate swaps	$	250,000	$	91	$	(990)	$	250,000	$	2,201	$	—
Interest rate caps	189,479		1,398		—		289,479		2,102		—
Total derivatives not designated as accounting hedges	439,479		1,489		(990)		539,479		4,303		—
Derivatives designated as accounting hedges
Interest rate swaps	187,175		9,267		—		187,670		11,247		—
Interest rate caps	577,297		10,582		—		561,200		13,565		—
Total derivatives	$	1,203,951	$	21,338	$	(990)	$	1,288,349	$	29,115	$	—

Schedule of Changes in Fair Value of Derivatives

The changes in the fair value of the Company’s derivatives during the three months ended March 31, 2023 and 2022 were comprised of the following (in thousands):


	Three Months Ended March 31,
	2023		2022
Interest rate swaps	$	(3,502)	$	6,757
Interest rate caps	(728)		5,182
Total change in fair value of interest rate derivatives	$	(4,230)	$	11,939
Comprehensive income statement presentation:
Change in fair value of derivatives and other	$	(3,804)	$	4,217
Unrealized cash flow hedge gains (losses)	(426)		7,722
Total change in fair value of interest rate derivatives	$	(4,230)	$	11,939

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

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+ Details

Condensed Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Total stockholders' equity	Preferred stock	Common stock	Additional paid-in capital	Distributions in excess of earnings	Accumulated other comprehensive gain	Noncontrolling interests in investment entities	Noncontrolling interests in Operating Partnership
Beginning balance at Dec. 31, 2021	$ 779,823	$ 555,352	$ 171,085	$ 630	$ 525,030	$ (141,360)	$ (33)	$ 629	$ 223,842
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	12,276	9,993				9,993		100	2,183
Unrealized cash flow hedge gains (losses)	7,722	5,907					5,907		1,815
Realized cash flow hedge (gains) losses reclassified to net income	787	602					602		185
Net proceeds from issuance of common stock	65,194	65,194		45	65,149
Noncontrolling interest in acquired real estate entity	23,065							23,065
Restricted stock awards, net	1,064	1,064			1,064
Acquisitions of noncontrolling interests	(3,901)	(3,901)			(3,901)
Redemption of operating partnership units	0	132			132				(132)
Dividends declared on preferred stock	(2,887)	(2,887)				(2,887)
Dividends and distributions declared on common shares and units	(14,939)	(11,433)				(11,433)			(3,506)
Ending balance at Mar. 31, 2022	868,204	620,023	171,085	675	587,474	(145,687)	6,476	23,794	224,387
Beginning balance at Dec. 31, 2022	904,014	647,450	171,085	677	587,884	(126,875)	14,679	24,055	232,509
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	5,417	4,709				4,709		154	554
Unrealized cash flow hedge gains (losses)	(426)	(328)					(328)	2	(100)
Realized cash flow hedge (gains) losses reclassified to net income	(2,922)	(2,211)					(2,211)	(39)	(672)
Net proceeds from issuance of common stock	(149)	(149)			(149)
Noncontrolling interest in acquired real estate entity	12,834
Restricted stock awards, net	979	979		2	977
Acquisitions of noncontrolling interests	(12,834)							(12,834)
Distribution to Joint Venture Partner	(506)							(506)
Dividends declared on preferred stock	(2,887)	(2,887)				(2,887)
Dividends and distributions declared on common shares and units	(16,824)	(12,908)				(12,908)			(3,916)
Ending balance at Mar. 31, 2023	$ 873,862	$ 634,655	$ 171,085	$ 679	$ 588,712	$ (137,961)	$ 12,140	$ 10,832	$ 228,375

Notes Receivable and Current Expected Credit Losses - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023 USD ($) loan	Mar. 29, 2023	Jan. 14, 2023	Jan. 01, 2023	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jan. 14, 2022	Dec. 31, 2021 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	$ 1,495,000				$ 1,292,000	$ 1,178,000		$ 994,000
Notes receivable, net	133,082,000				136,039,000
Notes receivable, nonaccrual status	0
Finance Receivable Allowance For Credit Loss And Off-Balance-Sheet, Credit Loss, Liability	$ 1,693,000				$ 1,630,000	$ 1,609,000		$ 1,004,000
Constellation Energy Building
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of economic interest acquired			11.00%				11.00%
Percentage of ownership interest			0.90
Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of financial instruments \| loan	3
Mezzanine loan \| Solis Gainesville II
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate	14.00%
Unused commitment fee percentage	10.00%			10.00%
Mezzanine loan \| Solis Gainesville II \| First 24 Months
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate		14.00%
Mezzanine loan \| Solis Gainesville II \| Twenty Four and Thirty Six Months
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate		10.00%
Mezzanine loan \| Solis Gainesville II \| Thirty Six Months Through Maturity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate		14.00%
Mezzanine loan \| Constellation Energy Building
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate					3.00%

Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Legal Proceedings

The Company is from time to time involved in various disputes, lawsuits, warranty claims, environmental and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters.

The Company currently is a party to various legal proceedings, none of which management expects will have a material adverse effect on the Company’s financial position, results of operations, or liquidity. Management accrues a liability for litigation if an unfavorable outcome is determined to be probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is determined to be probable and a range of loss can be reasonably estimated, management accrues the best estimate within the range; however, if no amount within the range is a better estimate than any other, the minimum amount within the range is accrued. Legal fees related to litigation are expensed as incurred. Management does not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on the Company’s financial position or results of operations; however, litigation is subject to inherent uncertainties.

Under the Company’s leases, tenants are typically obligated to indemnify the Company from and against all liabilities, costs, and expenses imposed upon or asserted against it as owner of the properties due to certain matters relating to the operation of the properties by the tenant.

Guarantees

In connection with certain of the Company's real estate financing activities and equity method investments, the Company has made guarantees to pay portions of certain senior loans of third parties associated with the development projects. The following table summarizes the outstanding guarantees made by the Company as of March 31, 2023 (in thousands):


Development project	Payment guarantee amount		Guarantee liability
Interlock Commercial (a)	$	37,450	$	386
Harbor Point Parcel 4 (b)	32,910		177
Total	$	70,360	$	563

_______________________________________

(a) This guarantee is subject to cancellation pending completion of the acquisition of The Interlock. Refer to Note 15 for further information.

(b) As of March 31, 2023, no amounts have been funded on this senior loan.

Commitments

The Company has a bonding line of credit for its general contracting construction business and is contingently liable under performance and payment bonds, bonds for cancellation of mechanics liens and defect bonds. Such bonds collectively totaled $8.5 million as of both March 31, 2023 and December 31, 2022, respectively. In addition, as of March 31, 2023, the Company has an outstanding letter of credit for $1.9 million to secure certain performances of the Company's subsidiary construction company under a related party project.

Unfunded Loan Commitments

The Company has certain commitments related to its notes receivable investments that it may be required to fund in the future. The Company is generally obligated to fund these commitments at the request of the borrower or upon the occurrence of events outside of the Company's direct control. As of March 31, 2023, the Company had three notes receivable with a total of $11.5 million of unfunded commitments. If commitments are funded in the future, interest will be charged at rates consistent with the existing investments. As of March 31, 2023, the Company has recorded a $0.2 million CECL allowance that relates to the unfunded commitments, which was recorded as a liability in Other liabilities in the consolidated balance sheet. See Note 6 for more information.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company has evaluated subsequent events through the date on which this Quarterly Report on Form 10-Q was filed, the date on which these financial statements were issued, and identified the items below for discussion. Notes Receivable On May 4, 2023, the Company entered into a contribution agreement with an unrelated third party to acquire a mixed-use property known as The Interlock for a purchase price of approximately $215 million. The Company expects to finance the transaction using $100 million of new fixed-rate financing (primarily through a $75 million unsecured term loan), the conversion of its existing mezzanine loan into equity, and the issuance of Class A units to the sponsor developer. Indebtedness Effective April 3, 2023, the Company transitioned the $69.0 million loan secured by Thames Street Wharf to SOFR. The modified loan bears interest at a rate of SOFR plus a spread of 1.30% and a credit spread adjustment of 0.10%. Effective April 3, 2023, the Company transitioned the $175.0 million loan secured by the Constellation Energy Building to SOFR. The modified loan bears interest at a rate of SOFR plus a spread of 1.50% and a credit spread adjustment of 0.11%. Derivative Financial Instruments Effective April 3, 2023, the Company terminated the 1.05% BSBY interest rate swap with a notional amount of $69.0 million and entered into an interest rate swap agreement with a notional amount of $69.0 million and a SOFR rate of 0.93%. The interest rate swap will expire on September 30, 2026. The Company did not pay a premium for this transaction. Effective April 4, 2023, the Company terminated the 4.00% BSBY interest rate cap with a notional amount of $175.0 million and the BSBY corridor of 1.00%-3.00% with a notional amount of $175.0 million and, effective April 3, 2023, entered into an interest rate swap agreement with a notional amount of $175.0 million and a SOFR rate of 1.84%. The interest rate swap will expire on February 1, 2024. The Company did not pay a premium for this transaction. On May 4, 2023, the Company entered into an interest rate swap agreement with a notional amount of $100.0 million and a SOFR rate of 3.20%. The interest rate swap will expire on May 19, 2026, unless canceled at the option of the counterparty, which cancellation can occur no earlier than May 1, 2025. The Company did not pay a premium for this transaction. Equity On April 3, 2023, in connection with the tender by a holder of Class A Units of 51,000 Class A Units for redemption by the Operating Partnership, the Company elected to satisfy the redemption request with a cash payment of $0.6 million. On May 8, 2023, the Company announced that its board of directors declared a cash dividend of $0.195 per common share for the second quarter of 2023. The second quarter dividend will be payable in cash on July 6, 2023 to stockholders of record on June 28, 2023. On May 8, 2023, the Company announced that its board of directors declared a cash dividend of $0.421875 per share of Series A Preferred Stock for the second quarter of 2023. The dividend will be payable in cash on July 14, 2023 to stockholders of record on July 3, 2023.

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Carrying Amounts and Fair Values of Financial Instruments Measured Based on Level 2 Inputs

The carrying amounts and fair values of the Company’s financial instruments as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Indebtedness, net(a)	$	1,123,528	$	1,103,392	$	1,079,233	$	1,058,530
Notes receivable, net	133,082		133,082		136,039		136,039
Interest rate swap liabilities	990		990		—		—
Interest rate swap and cap assets	21,338		21,338		29,115		29,115

________________________________________

(a) Excludes $10.3 million and $11.0 million of deferred financing costs as of March 31, 2023 and December 31, 2022, respectively.

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Subsequent Events (Details) - USD ($) $ / shares in Units, shares in Thousands					3 Months Ended
	May 04, 2023	Apr. 03, 2023	Feb. 28, 2023	Nov. 04, 2022	Mar. 31, 2023	Mar. 31, 2022	Apr. 04, 2023	Dec. 31, 2022	Jan. 11, 2022
Subsequent Event [Line Items]
Purchase price of notes receivable					$ 6,699,000	$ 17,651,000
Notional amount					$ 1,203,951,000			$ 1,288,349,000
Dividend declared (in dollars per share)					$ 0.19	$ 0.17
Derivatives not designated as accounting hedges
Subsequent Event [Line Items]
Notional amount					$ 439,479,000			539,479,000
Interest rate caps
Subsequent Event [Line Items]
Notional amount					766,776,000
Premium Paid					$ 5,829,000
Interest rate caps \| Minimum
Subsequent Event [Line Items]
Interest rate cap (in percent)					1.00%
Interest rate caps \| Maximum
Subsequent Event [Line Items]
Interest rate cap (in percent)					3.00%
Interest rate caps \| Derivatives not designated as accounting hedges
Subsequent Event [Line Items]
Notional amount					$ 189,479,000			289,479,000
Interest rate caps \| Derivatives not designated as accounting hedges \| BSBY
Subsequent Event [Line Items]
Notional amount									$ 175,000,000
Interest rate cap (in percent)									4.00%
Premium Paid									$ 154,000
Interest rate swaps
Subsequent Event [Line Items]
Notional amount					437,175,000
Interest rate swaps \| Derivatives not designated as accounting hedges
Subsequent Event [Line Items]
Notional amount					$ 250,000,000			$ 250,000,000
Subsequent event
Subsequent Event [Line Items]
Dividend declared (in dollars per share)	$ 0.195
Preferred stock dividends declared (in dollars per share)	$ 0.421875
Subsequent event \| Fixed Rate Financing
Subsequent Event [Line Items]
Debt instrument, face amount	$ 100,000,000
Subsequent event \| Line of Credit \| Term Loan \| Term Loan Facility
Subsequent Event [Line Items]
Debt instrument, face amount	75,000,000
Subsequent event \| Interlock Commercial
Subsequent Event [Line Items]
Purchase price of notes receivable	215,000,000
Subsequent event \| Thames Street Wharf \| Secured debt
Subsequent Event [Line Items]
Debt instrument, face amount		$ 69,000,000
Subsequent event \| Constellation Energy Building \| Secured debt
Subsequent Event [Line Items]
Debt instrument, face amount		$ 175,000,000
Subsequent event \| Secured Overnight Financing Rate (SOFR) \| Thames Street Wharf \| Secured debt
Subsequent Event [Line Items]
Stated interest rate, basis spread on variable rate		1.30%
Credit spread adjustment		0.10%
Subsequent event \| Secured Overnight Financing Rate (SOFR) \| Constellation Energy Building \| Secured debt
Subsequent Event [Line Items]
Stated interest rate, basis spread on variable rate		1.50%
Credit spread adjustment		0.11%
Subsequent event \| Interest rate caps \| Minimum \| Derivative Instrument, Expire on February 1, 2024
Subsequent Event [Line Items]
Interest rate cap (in percent)		1.00%
Subsequent event \| Interest rate caps \| Maximum \| Derivative Instrument, Expire on February 1, 2024
Subsequent Event [Line Items]
Interest rate cap (in percent)		3.00%
Subsequent event \| Interest rate caps \| BSBY \| Derivative Instrument, Expire on September 30, 2026
Subsequent Event [Line Items]
Derivative terminated, interest rate		1.05%
Subsequent event \| Interest rate caps \| BSBY \| Derivative Instrument, Expire on February 1, 2024
Subsequent Event [Line Items]
Derivative terminated, interest rate		4.00%
Subsequent event \| Interest rate caps \| Derivatives not designated as accounting hedges \| Secured Overnight Financing Rate (SOFR) \| Derivative Instrument, Expire on September 30, 2026
Subsequent Event [Line Items]
Interest rate cap (in percent)		0.93%
Subsequent event \| Interest rate caps \| Derivatives not designated as accounting hedges \| Secured Overnight Financing Rate (SOFR) \| Derivative Instrument, Expire on February 1, 2024
Subsequent Event [Line Items]
Interest rate cap (in percent)							1.84%
Subsequent event \| Interest rate caps \| Derivatives not designated as accounting hedges \| BSBY \| Derivative Instrument, Expire on September 30, 2026
Subsequent Event [Line Items]
Notional amount		$ 69,000,000
Subsequent event \| Interest rate caps \| Derivatives not designated as accounting hedges \| BSBY \| Derivative Instrument, Expire on February 1, 2024
Subsequent Event [Line Items]
Notional amount		$ 175,000,000					$ 175,000,000
Premium Paid							$ 0
Subsequent event \| Interest rate swaps
Subsequent Event [Line Items]
Notional amount	$ 100,000,000
Subsequent event \| Interest rate swaps \| Secured Overnight Financing Rate (SOFR)
Subsequent Event [Line Items]
Derivative, Basis Spread on Variable Rate	3.20%
Common Class A
Subsequent Event [Line Items]
Dividend declared (in dollars per share)			$ 0.19	$ 0.19
Common Class A \| Subsequent event
Subsequent Event [Line Items]
Stock redeemed (in shares)		51
Payments for redemption of stock		$ 600,000

Segments - Additional Information (Details) $ in Thousands	3 Months Ended
Segments - Additional Information (Details) $ in Thousands	Mar. 31, 2023 USD ($) segment	Mar. 31, 2022 USD ($)
Segment Reporting Information
Number of reportable segments \| segment	5
General contracting and real estate services revenues	$ 84,238	$ 24,650
Depreciation and amortization	18,468	18,557
General Contracting and Real Estate Services
Segment Reporting Information
General contracting and real estate services revenues	84,238	24,650
General contracting and real estate services expenses	81,170	23,821
Office Real Estate
Segment Reporting Information
Depreciation and amortization	6,900	6,600
Interest expense	2,400	2,000
Retail Real Estate
Segment Reporting Information
Depreciation and amortization	7,300	7,100
Interest expense	2,100	2,000
Multifamily Real Estate
Segment Reporting Information
Depreciation and amortization	4,200	4,700
Interest expense	2,600	3,200
Intercompany Eliminations \| General Contracting and Real Estate Services
Segment Reporting Information
General contracting and real estate services revenues	13,700	8,600
General contracting and real estate services expenses	$ 13,500	$ 8,500

Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reclassification [Line Items]
Interest income, operating	$ 3,719	$ 3,568
Revenues	144,175	82,853
Operating income	$ 20,338	17,358
Revision of Prior Period, Reclassification, Adjustment
Reclassification [Line Items]
Interest income, operating		3,600
Interest income, nonoperating		(3,600)
Revenues		3,600
Operating income		$ 3,600

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
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-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(1))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

+ Details

Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Schedule of Rental Revenue

Rental revenue for the three months ended March 31, 2023 and 2022 comprised the following (in thousands):


	Three Months Ended March 31,
	2023		2022
Base rent and tenant charges	$	54,471	$	52,879
Accrued straight-line rental adjustment	1,455		1,492
Lease incentive amortization	(165)		(173)
(Above) below market lease amortization	457		437
Total rental revenue	$	56,218	$	54,635

Construction Contracts - Summary of Costs in Excess of Billings and Billings in Excess of Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Construction contract costs and estimated earnings in excess of billings
Beginning balance	$ 342	$ 243
Transferred to receivables	(347)	(266)
Construction contract costs and estimated earnings not billed during the period	1,206	121
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	5	23
Ending balance	1,206	121
Billings in excess of construction contract costs and estimated earnings
Beginning balance	17,515	4,881
Revenue recognized that was included in the balance at the beginning of the period	(17,515)	(4,881)
Increases due to new billings, excluding amounts recognized as revenue during the period	17,150	15,055
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	(414)	(1)
Ending balance	$ 16,736	$ 15,054

Equity (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Schedule of Dividends and Distributions

During the three months ended March 31, 2023, the following dividends/distributions were declared or paid:

Equity type

Declaration Date

Record Date

Payment Date

Dividends per Share/Unit

Aggregate Dividends/Distributions on Stock and Units (in thousands)

Common Stock/Class A Units

11/04/2022

12/28/2023

01/05/2023

0.19

16,785

Common Stock/Class A Units

02/28/2023

03/29/2023

04/06/2023

0.19

16,825

Series A Preferred Stock

11/04/2022

01/03/2023

01/13/2023

0.421875

2,887

Series A Preferred Stock

02/28/2023

04/03/2023

04/14/2023

0.421875

2,887

Notes Receivable and Current Expected Credit Losses - Summary of Notes Receivable Outstanding (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jan. 01, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable guarantee premium	$ 386		$ 701
Allowance for credit losses	(1,495)		(1,292)	$ (1,178)	$ (994)
Total notes receivable	133,082		136,039
Allowance related to unfunded commitments	198		338	$ 431	$ 10
Other liabilities
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance related to unfunded commitments	200		300
Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	122,520		112,284
Maximum principal commitment	147,189
Mezzanine loan \| City Park 2
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	22,096		19,062
Maximum principal commitment	$ 20,594
Interest rate	13.00%
Mezzanine loan \| Solis Gainesville II
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 11,566		6,638
Maximum principal commitment	$ 19,595
Interest rate	14.00%
Unused commitment fee percentage	10.00%	10.00%
Mezzanine loan \| Interlock Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 88,858		$ 86,584
Maximum principal commitment	$ 107,000
Interest rate	15.00%
Mezzanine loan \| Constellation Energy Building
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate			3.00%
Constellation Energy Building note receivable \| Constellation Energy Building
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 0		$ 12,834
Other notes receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 11,671		$ 11,512

Leases - Additional Information (Details)	3 Months Ended
Leases - Additional Information (Details)	Mar. 31, 2023 property lease renewal_options
Lessee, Lease, Description [Line Items]
Number of ground leases	8
Number of properties subject to ground leases \| property	7
Number of operating leases	5
Number of finance leases	3
Number of options to extend, more than \| renewal_options	1
Minimum
Lessee, Lease, Description [Line Items]
Renewal term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Renewal term	25 years

Stock-Based Compensation	3 Months Ended
Stock-Based Compensation	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company’s Amended and Restated 2013 Equity Incentive Plan (the "Equity Plan") permits the grant of restricted stock awards, stock options, stock appreciation rights, performance units, and other equity-based awards up to an aggregate of 1,700,000 shares of common stock. As of March 31, 2023, there were no shares available for issuance under the Equity Plan. As a result of the Company inadvertently issuing more shares of common stock than were available for issuance under the Equity Plan, on May 9, 2023, the Company's Chief Executive Officer and the Company's Chief Financial Officer forfeited 75,321 and 8,975 restricted shares of common stock, respectively. During the three months ended March 31, 2023, the Company granted an aggregate of 298,163 shares of restricted stock to employees and non-employee directors with a weighted average grant date fair value of $12.88 per share. Of those shares, 87,513 were surrendered by the employees for income tax withholdings. Employee restricted stock awards generally vest over a period of two years: one-third immediately on the grant date and the remaining two-thirds in equal amounts on the first two anniversaries following the grant date, subject to continued service to the Company. Beginning with grants made in 2021, executive officers' restricted shares generally vest over a period of three years: two-fifths immediately on the grant date and the remaining three-fifths in equal amounts on the first three anniversaries following the grant date, subject to continued service to the Company. Non-employee director restricted stock awards vest either immediately upon grant or over a period of one year, subject to continued service to the Company. Unvested restricted stock awards are entitled to receive dividends from their grant date. During the three months ended March 31, 2023 and 2022, the Company recognized $2.1 million and $1.8 million, respectively, of stock-based compensation cost. As of March 31, 2023, there were 297,462 non-vested restricted shares outstanding; the total unrecognized compensation expense related to non-vested restricted shares was $2.9 million, which the Company expects to recognize over the next 51 months.

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	May 09, 2023	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation expense		$ 2.1	$ 1.8
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock surrendered, forfeited in period (in shares)		87,513
Restricted stock granted (in shares)		298,163
Restricted stock granted, grant date fair value (in dollars per share)		$ 12.88
Employee restricted stock award, vesting period		2 years
Nonvested restricted shares outstanding (in shares)		297,462
Unrecognized compensation cost		$ 2.9
Unrecognized compensation cost, recognition period		51 months
Restricted Stock \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award
Employee restricted stock award, vesting period		3 years
Restricted Stock \| Non-Employee Director
Share-based Compensation Arrangement by Share-based Payment Award
Non-employee restricted stock award vest grant over period		1 year
Restricted Stock \| Grant Date
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage		33.33%
Restricted Stock \| Grant Date \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage		40.00%
Restricted Stock \| First Anniversary
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage		33.33%
Restricted Stock \| First Anniversary \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage		20.00%
Restricted Stock \| Second Anniversary
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage		33.33%
Restricted Stock \| Second Anniversary \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage		20.00%
Restricted Stock \| Third Anniversary \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage		20.00%
Restricted Stock Units (RSUs) \| Chief Financial Officer \| Subsequent event
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock surrendered, forfeited in period (in shares)	8,975
Restricted Stock Units (RSUs) \| Chief Executive Officer \| Subsequent event
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock surrendered, forfeited in period (in shares)	75,321
Amended and Restated 2013 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares reserved for issuance (in shares)		1,700,000
Shares available for issuance (in shares)		0

Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands

Mar. 31, 2023

Dec. 31, 2022

Real estate investments:

Income producing property

$ 1,894,941

$ 1,884,214

Held for development

6,294

Construction in progress

61,513

53,067

Gross real estate investments

1,962,748

1,943,575

Accumulated depreciation

(344,081)

(329,963)

Net real estate investments

1,618,667

1,613,612

Cash and cash equivalents

33,817

48,139

Restricted cash

2,619

^[1]

3,726

Accounts receivable, net

38,195

39,186

Notes receivable, net

133,082

136,039

Construction receivables, including retentions, net

66,435

70,822

Construction contract costs and estimated earnings in excess of billings

1,206

342

Equity method investments

93,080

71,983

Operating lease right-of-use assets

23,284

23,350

Finance lease right-of-use assets

45,600

45,878

Acquired lease intangible assets

100,006

103,870

Other assets

76,024

85,363

Total Assets

2,232,015

2,242,310

LIABILITIES AND EQUITY

Indebtedness, net

1,113,255

1,068,261

Accounts payable and accrued liabilities

19,051

26,839

Construction payables, including retentions

77,115

93,472

Billings in excess of construction contract costs and estimated earnings

16,736

17,515

Operating lease liabilities

31,645

31,677

Finance lease liabilities

46,536

46,477

Other liabilities

53,815

54,055

Total Liabilities

1,358,153

1,338,296

Stockholders’ equity:

Preferred stock, $0.01 par value, 100,000,000 shares authorized: 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock, 9,980,000 shares authorized; 6,843,418 shares issued and outstanding as of March 31, 2023 and December 31, 2022

171,085

Common stock, $0.01 par value, 500,000,000 shares authorized; 67,939,340 and 67,729,854 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively

679

677

Additional paid-in capital

588,712

587,884

Distributions in excess of earnings

(137,961)

(126,875)

Accumulated other comprehensive gain

12,140

14,679

Total stockholders’ equity

634,655

647,450

Noncontrolling interests in investment entities

10,832

24,055

Noncontrolling interests in Operating Partnership

228,375

232,509

Total Equity

873,862

904,014

Total Liabilities and Equity

$ 2,232,015

$ 2,242,310

[1]	Restricted cash represents amounts held by lenders for real estate taxes, insurance, and reserves for capital improvements.

Construction Contracts (Tables)

3 Months Ended

Mar. 31, 2023

Contractors [Abstract]

Summary of Balances and Changes of Construction Contracts

The following table summarizes the changes to the balances in the Company’s construction contract costs and estimated earnings in excess of billings account and the billings in excess of construction contract costs and estimated earnings account for the three months ended March 31, 2023 and 2022 (in thousands):


	Three Months Ended March 31, 2023				Three Months Ended March 31, 2022
	Construction contract costs and estimated earnings in excess of billings		Billings in excess of construction contract costs and estimated earnings		Construction contract costs and estimated earnings in excess of billings		Billings in excess of construction contract costs and estimated earnings
Beginning balance	$	342	$	17,515	$	243	$	4,881
Revenue recognized that was included in the balance at the beginning of the period	—		(17,515)		—		(4,881)
Increases due to new billings, excluding amounts recognized as revenue during the period	—		17,150		—		15,055
Transferred to receivables	(347)		—		(266)		—
Construction contract costs and estimated earnings not billed during the period	1,206		—		121		—
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	5		(414)		23		(1)
Ending balance	$	1,206	$	16,736	$	121	$	15,054

The Company’s balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) as of March 31, 2023 and 2022 were as follows (in thousands):


	Three Months Ended March 31,
	2023		2022
Beginning backlog	$	665,564	$	215,518
New contracts/change orders	70,792		228,603
Work performed	(84,516)		(24,682)
Ending backlog	$	651,840	$	419,439

Schedule of Net Position of Uncompleted Construction Contracts

The Company’s net position on uncompleted construction contracts comprised the following as of March 31, 2023 and December 31, 2022 (in thousands):


	March 31, 2023		December 31, 2022
Costs incurred on uncompleted construction contracts	$	400,028	$	571,465
Estimated earnings	14,280		22,162
Billings	(429,838)		(610,800)
Net position	$	(15,530)	$	(17,173)

Construction contract costs and estimated earnings in excess of billings	$	1,206	$	342
Billings in excess of construction contract costs and estimated earnings	(16,736)		(17,515)
Net position	$	(15,530)	$	(17,173)

The above table reflects the net effect of projects closed as of March 31, 2023 and December 31, 2022, respectively.

Condensed Consolidated Statement of Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Dividend declared (in dollars per share)	$ 0.19	$ 0.17

Commitments and Contingencies - Guarantees (Details) - Payment Guarantee $ in Thousands	Mar. 31, 2023 USD ($)
Commitments and Contingencies
Payment guarantee amount	$ 70,360
Guarantee liability	563
Interlock Commercial
Commitments and Contingencies
Payment guarantee amount	37,450
Guarantee liability	386
Harbor Point Parcel 4
Commitments and Contingencies
Payment guarantee amount	32,910
Guarantee liability	$ 177

Significant Accounting Policies	3 Months Ended
Significant Accounting Policies	Mar. 31, 2023
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The condensed consolidated financial statements include the financial position and results of operations of the Company and its consolidated subsidiaries, including the Operating Partnership, its wholly-owned subsidiaries, and any interests in variable interest entities ("VIEs") where the Company has been determined to be the primary beneficiary. All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition, and results of operations for the interim periods presented. The accompanying condensed consolidated financial statements were prepared in accordance with the requirements for interim financial information. Accordingly, these interim financial statements have not been audited and exclude certain disclosures required for annual financial statements. Also, the operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed. Such estimates are based on management’s historical experience and best judgment after considering past, current, and expected events and economic conditions. Actual results could differ significantly from management’s estimates. Reclassifications Certain items have been reclassified from their prior year classifications to conform to the current year presentation. Effective for the three months ended March 31, 2023, the Company has changed the presentation of its Consolidated Statements of Comprehensive Income. For the three months ended March 31, 2022, the Company reclassified interest income of $3.6 million from non-operating income to operating income. As a result, total revenues and operating income increased by $3.6 million compared to previous reporting. These reclassifications had no effect on net income or stockholder's equity as previously reported. Recent Accounting Pronouncements Reference Rate Reform In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04 Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848), which became effective on March 12, 2020. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. This ASU also provides optional expedients to enable companies to continue to apply hedge accounting to certain hedging relationships impacted by reference rate reform. Application of the guidance is optional and only available in certain situations. In January 2021, FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848). The amendments in this standard are elective and principally apply to entities that have derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. Similar to ASU No. 2020-04, provisions of this ASU are effective upon issuance. In December 2022, FASB issued ASU 2022-06 Deferral of the Sunset Date of Topic 848 which became effective immediately upon issuance. ASU 2022-06 deferred the sunset date of Topic 848 to December 31, 2024. During the three months ended March 31, 2023, the Company elected to apply the practical expedients to modifications of qualifying contracts as continuations of the existing contracts rather than as new contracts. The adoption of the new guidance did not have a material impact on the consolidated financial statements. Management will continue to evaluate the impacts of reference rate reform. Other Accounting Policies See the Company's Annual Report on Form 10-K for the year ended December 31, 2022 for a description of other accounting principles upon which basis the accompanying consolidated financial statements were prepared.

Equity - Dividends and Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended
	Feb. 28, 2023	Nov. 04, 2022	Mar. 31, 2023	Mar. 31, 2022
Class of Stock [Line Items]
Common stock dividend declared (in dollars per share)			$ 0.19	$ 0.17
Aggregate common stock dividends			$ 16,824	$ 14,939
Aggregate preferred stock dividends			$ 2,887	$ 2,887
Common Stock/Class A Units
Class of Stock [Line Items]
Common stock dividend declared (in dollars per share)	$ 0.19	$ 0.19
Aggregate common stock dividends	$ 16,825	$ 16,785
Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock dividends declared (in dollars per share)	$ 0.421875	$ 0.421875
Aggregate preferred stock dividends	$ 2,887	$ 2,887

Derivative Financial Instruments - Change in Fair Value of Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative [Line Items]
Total change in fair value of interest rate derivatives	$ (4,230)	$ 11,939
Change in fair value of derivatives and other	(3,804)	4,217
Unrealized cash flow hedge gains (losses)	(426)	7,722
Interest rate swaps
Derivative [Line Items]
Total change in fair value of interest rate derivatives	(3,502)	6,757
Interest rate caps
Derivative [Line Items]
Total change in fair value of interest rate derivatives	$ (728)	$ 5,182

Leases - Lessor, Rental Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Base rent and tenant charges	$ 54,471	$ 52,879
Accrued straight-line rental adjustment	1,455	1,492
Lease incentive amortization	(165)	(173)
(Above) below market lease amortization	457	437
Total rental revenue	$ 56,218	$ 54,635

Fair Value of Financial Instruments - Carrying Amounts and Fair Values of Financial Instruments Measured based on Level Two Inputs (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value of Financial Instruments
Deferred financing costs	$ 10,300	$ 11,000
Carrying Value
Fair Value of Financial Instruments
Indebtedness, net	1,123,528	1,079,233
Notes receivable, net	133,082	136,039
Interest rate swap liabilities	990	0
Interest rate swap and cap assets	21,338	29,115
Fair Value
Fair Value of Financial Instruments
Indebtedness, net	1,103,392	1,058,530
Notes receivable, net	133,082	136,039
Interest rate swap liabilities	990	0
Interest rate swap and cap assets	$ 21,338	$ 29,115

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2023	May 05, 2023
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-35908
Entity Registrant Name	ARMADA HOFFLER PROPERTIES, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	46-1214914
Entity Address, Address Line One	222 Central Park Avenue
Entity Address, Address Line Two	Suite 2100
Entity Address, City or Town	Virginia Beach
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	23462
City Area Code	757
Local Phone Number	366-4000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		67,938,793
Entity Central Index Key	0001569187
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Common stock
Entity Listings [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	AHH
Security Exchange Name	NYSE
Redeemable convertible preferred stock
Entity Listings [Line Items]
Title of 12(b) Security	6.75% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share
Trading Symbol	AHHPrA
Security Exchange Name	NYSE

Construction Contracts - Summary of Net Position (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Contractors [Abstract]
Costs incurred on uncompleted construction contracts	$ 400,028	$ 571,465
Estimated earnings	14,280	22,162
Billings	(429,838)	(610,800)
Net position	(15,530)	(17,173)
Construction contract costs and estimated earnings in excess of billings	1,206	342	$ 121	$ 243
Billings in excess of construction contract costs and estimated earnings	$ (16,736)	$ (17,515)	$ (15,054)	$ (4,881)

Indebtedness	3 Months Ended
Indebtedness	Mar. 31, 2023
Debt Disclosure [Abstract]
Indebtedness	Indebtedness Credit Facility On August 23, 2022, the Company and the Operating Partnership entered into an amended and restated credit agreement (the "Credit Agreement"), which provides for a $550.0 million credit facility comprised of a $250.0 million senior unsecured revolving credit facility (the "revolving credit facility") and a $300.0 million senior unsecured term loan facility (the "term loan facility" and, together with the revolving credit facility, the "credit facility"), with a syndicate of banks. The credit facility includes an accordion feature that allows the total commitments to be increased to $1.0 billion, subject to certain conditions, including obtaining commitments from any one or more lenders. The revolving credit facility has a scheduled maturity date of January 22, 2027, with two six-month extension options, subject to the Company's satisfaction of certain conditions, including payment of a 0.075% extension fee at each extension. The term loan facility has a scheduled maturity date of January 21, 2028. The revolving credit facility bears interest at Secured Overnight Financing Rate ("SOFR") plus a margin ranging from 1.30% to 1.85% and a credit spread adjustment of 0.10%, and the term loan facility bears interest at SOFR plus a margin ranging from 1.25% to 1.80% and a credit spread adjustment of 0.10%, in each case depending on the Company's total leverage. The Company is also obligated to pay an unused commitment fee of 15 or 25 basis points on the unused portions of the commitments under the revolving credit facility, depending on the amount of borrowings under the revolving credit facility. If the Company or the Operating Partnership attains investment grade credit ratings from both S&P Global Ratings and Moody's Investors Service, Inc., the Operating Partnership may elect to have borrowings become subject to interest rates based on such credit ratings. As of March 31, 2023 and December 31, 2022, the outstanding balance on the revolving credit facility was $105.0 million and $61.0 million, respectively. The outstanding balance on the term loan facility was $300.0 million as of both March 31, 2023 and December 31, 2022. As of March 31, 2023, the effective interest rates on the revolving credit facility and the term loan facility, before giving effect to interest rate caps and swaps, were 6.20% and 6.10%, respectively. After giving effect to interest rate caps and swaps, the effective interest rates on the revolving credit facility and the term loan facility were 4.35% and 3.68%, respectively, as of March 31, 2023. The Operating Partnership may, at any time, voluntarily prepay any loan under the credit facility in whole or in part without premium or penalty. The Operating Partnership is the borrower, and its obligations under the credit facility are guaranteed by the Company and certain of its subsidiaries that are not otherwise prohibited from providing such guaranty. The Credit Agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Company's ability to borrow under the credit facility is subject to ongoing compliance with a number of financial covenants, affirmative covenants, and other restrictions. The Credit Agreement includes customary events of default, in certain cases subject to customary cure periods. The occurrence of an event of default, if not cured within the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest, and all other amounts payable under the credit facility to be immediately due and payable. The Company is currently in compliance with all covenants under the Credit Agreement. M&T Term Loan Facility On December 6, 2022, the Company, as parent guarantor, and the Operating Partnership, as borrower, entered into a term loan agreement (the "M&T term loan agreement") with Manufacturers and Traders Trust Company, as lender and administrative agent, which provides a $100.0 million senior unsecured term loan facility (the "M&T term loan facility"), with the option to increase the total capacity to $200.0 million, subject to the Company's satisfaction of certain conditions. The proceeds from the M&T term loan facility were used to repay the loans secured by the Wills Wharf, 249 Central Park Retail, Fountain Plaza Retail, and South Retail properties. The M&T term loan facility has a scheduled maturity date of March 8, 2027, with a one-year extension option, subject to the Company's satisfaction of certain conditions, including payment of a 0.075% extension fee. The M&T term loan facility bears interest at a rate elected by the Operating Partnership based on term SOFR, Daily Simple SOFR, or the Base Rate (as defined below), and in each case plus a margin and a credit spread adjustment of 0.10%. The margin under each interest rate election depends on the Company's total leverage. The "Base Rate" is equal to the highest of: (a) the rate of interest in effect for such day as publicly announced from time to time by M&T Bank as its “prime rate” for such day, (b) the Federal Funds Rate for such day, plus 0.50%, (c) one month term SOFR for such day plus 100 basis points and (d) 1.00%. The Operating Partnership has elected for the loan to bear interest at term SOFR plus margin. If the Company or the Operating Partnership attains investment grade credit ratings from both S&P Global Ratings and Moody's Investor Service, Inc., the Operating Partnership may elect to have borrowings become subject to interest rates based on such credit ratings. As of March 31, 2023 and December 31, 2022, the outstanding balance on the M&T term loan facility was $100.0 million. As of March 31, 2023, the effective interest rate on the M&T term loan facility, before giving effect to interest rate swaps, was 6.10%. After giving effect to interest rate swaps, the effective interest rate on the M&T term loan facility was 4.80% as of March 31, 2023. The Operating Partnership may, at any time, voluntarily prepay the M&T term loan facility in whole or in part without premium or penalty, provided certain conditions are met. The Operating Partnership is the borrower under the M&T term loan facility, and its obligations under the M&T term loan facility are guaranteed by the Company and certain of its subsidiaries that are not otherwise prohibited from providing such guaranty. The M&T term loan agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Company's ability to borrow under the M&T term loan facility is subject to ongoing compliance with a number of financial covenants, affirmative covenants, and other restrictions. The term loan agreement includes customary events of default, in certain cases subject to customary cure periods. The occurrence of an event of default, if not cured within the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest, and all other amounts payable under the M&T term loan facility to be immediately due and payable. The Company is currently in compliance with all covenants under the M&T term loan agreement. Other 2023 Financing Activity During the three months ended March 31, 2023, the Company borrowed $2.7 million under its existing construction loans to fund new development and construction.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Derivative Financial Instruments

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

The Company enters into interest rate derivative contracts to manage exposure to interest rate risks. The Company does not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are recognized at fair value and presented within other assets and other liabilities in the condensed consolidated balance sheets. Gains and losses resulting from changes in the fair value of derivatives that are neither designated nor qualify as hedging instruments are recognized within the change in fair value of interest rate derivatives in the condensed consolidated statements of comprehensive income. For derivatives that qualify as cash flow hedges, the gain or loss is reported as a component of other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings.

As of March 31, 2023, the Company had the following London Inter-Bank Offered Rate ("LIBOR"), SOFR, and Bloomberg Short-Term Bank Yield Index ("BSBY") interest rate caps ($ in thousands):

Effective Date

Maturity Date

Notional Amount

Strike Rate

Premium Paid

3/4/2021

4/1/2023

14,479

2.50% (LIBOR)

11/1/2020

11/1/2023

84,375

(a)

1.84% (SOFR)

7/1/2022

1/1/2024

50,000

(a)

1.00%-3.00% (SOFR)

(b)

143

(c)

7/5/2022

1/1/2024

35,100

(a)

1.00%-3.00% (SOFR)

(b)

120

(c)

1/11/2022

2/1/2024

175,000

4.00% (BSBY)

(e)

154

4/7/2022

2/1/2024

175,000

(a)

1.00%-3.00% (BSBY)

(b) (e)

3,595

7/6/2022

3/1/2024

200,000

(a)

1.00%-3.00% (SOFR)

(b)

352

(c)

9/1/2022

9/1/2024

32,822

(a)(d)

1.00%-3.00% (SOFR)

(b)

1,370

Total

766,776

5,829

________________________________________

(a) Designated as a cash flow hedge.

(c) This amount represents the sum of the premiums paid on the original instruments. The caps were blended and extended for a net zero premium during the year ended December 31, 2022.

As of March 31, 2023, the Company held the following floating-to-fixed interest rate swaps ($ in thousands):


Related Debt	Notional Amount			Index		Swap Fixed Rate		Debt effective rate		Effective Date	Expiration Date
Senior unsecured term loan	$	50,000		1-month LIBOR		2.78	%	4.08	%	5/1/2018	5/1/2023
Senior unsecured term loan	32,706		(a)	1-month SOFR	(b)	2.17	%	3.47	%	4/1/2019	8/10/2023
Senior unsecured term loan	10,500		(a)	1-month LIBOR		3.02	%	4.32	%	10/12/2018	10/12/2023
Senior unsecured term loan	25,000		(a)	1-month LIBOR		0.50	%	1.80	%	4/1/2020	4/1/2024
Senior unsecured term loan	25,000		(a)	1-month LIBOR		0.50	%	1.80	%	4/1/2020	4/1/2024
Senior unsecured term loan	25,000		(a)	Daily SOFR	(c)	0.44	%	1.74	%	4/1/2020	4/1/2024
Thames Street Wharf	68,969		(a)	1-month BSBY	(d)	1.05	%	2.35	%	9/30/2021	9/30/2026
M&T unsecured term loan	100,000			1-month SOFR		3.50	%	4.80	%	12/6/2022	12/6/2027
Senior unsecured term loan	100,000			1-month SOFR		3.43	%	4.73	%	12/13/2022	1/21/2028
Total	$	437,175

________________________________________

(a) Designated as a cash flow hedge.

(b) Effective February 1, 2023, this swap was amended to reference the 1-month SOFR index. Prior to the amendment, the swap referenced the 1-month LIBOR index.

(c) Effective February 1, 2023, this swap was amended to reference the Daily SOFR index. Prior to the amendment, the swap referenced the 1-month LIBOR index.

(d) Effective April 3, 2023, this swap was amended to reference the Daily SOFR index with a fixed rate of 0.93%.

For the interest rate swaps and caps designated as cash flow hedges, realized gains and losses are reclassified out of accumulated other comprehensive gain (loss) to interest expense in the condensed consolidated statements of comprehensive income due to payments received from and paid to the counterparty. During the next 12 months, the Company anticipates recognizing approximately $10.4 million of net hedging gains as reductions to interest expense. These amounts will be reclassified from accumulated other comprehensive gain into earnings to offset the variability of the hedged items during this period.

The Company’s derivatives were comprised of the following as of March 31, 2023 and December 31, 2022 (in thousands):


	March 31, 2023						December 31, 2022
	Notional Amount		Fair Value				Notional Amount		Fair Value
			Asset		Liability				Asset		Liability
Derivatives not designated as accounting hedges
Interest rate swaps	$	250,000	$	91	$	(990)	$	250,000	$	2,201	$	—
Interest rate caps	189,479		1,398		—		289,479		2,102		—
Total derivatives not designated as accounting hedges	439,479		1,489		(990)		539,479		4,303		—
Derivatives designated as accounting hedges
Interest rate swaps	187,175		9,267		—		187,670		11,247		—
Interest rate caps	577,297		10,582		—		561,200		13,565		—
Total derivatives	$	1,203,951	$	21,338	$	(990)	$	1,288,349	$	29,115	$	—

The changes in the fair value of the Company’s derivatives during the three months ended March 31, 2023 and 2022 were comprised of the following (in thousands):


	Three Months Ended March 31,
	2023		2022
Interest rate swaps	$	(3,502)	$	6,757
Interest rate caps	(728)		5,182
Total change in fair value of interest rate derivatives	$	(4,230)	$	11,939
Comprehensive income statement presentation:
Change in fair value of derivatives and other	$	(3,804)	$	4,217
Unrealized cash flow hedge gains (losses)	(426)		7,722
Total change in fair value of interest rate derivatives	$	(4,230)	$	11,939

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	67,939,340	67,729,854
Common stock, shares outstanding (in shares)	67,939,340	67,729,854
Redeemable convertible preferred stock
Preferred stock, shares authorized (in shares)	9,980,000	9,980,000
Preferred Stock dividend rate percentage	6.75%
Preferred stock, shares issued (in shares)	6,843,418	6,843,418
Preferred stock, shares outstanding (in shares)	6,843,418	6,843,418

Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

Lessee Disclosures

As a lessee, the Company has eight ground leases on seven properties. These ground leases have maximum lease terms (including renewal options) that expire between 2074 and 2117. The exercise of lease renewal options is at the Company's sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Five of these leases have been classified as operating leases and three of these leases have been classified as finance leases. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants.

Lessor Disclosures

As a lessor, the Company leases its properties under operating leases and recognizes base rents on a straight-line basis over the lease term. The Company also recognizes revenue from tenant recoveries, through which tenants reimburse the Company on an accrual basis for certain expenses such as utilities, janitorial services, repairs and maintenance, security and alarms, parking lot and ground maintenance, administrative services, management fees, insurance, and real estate taxes. Rental revenues are reduced by the amount of any leasing incentives amortized on a straight-line basis over the term of the applicable lease. In addition, the Company recognizes contingent rental revenue (e.g., percentage rents based on tenant sales thresholds) when the sales thresholds are met. Many tenant leases include one or more options to renew, with renewal terms that can extend the lease term from one to 25 years, or more. The exercise of lease renewal options is at the tenant's sole discretion. The Company includes a renewal period in the lease term only if it appears at lease inception that the renewal is reasonably assured.

Rental revenue for the three months ended March 31, 2023 and 2022 comprised the following (in thousands):


	Three Months Ended March 31,
	2023		2022
Base rent and tenant charges	$	54,471	$	52,879
Accrued straight-line rental adjustment	1,455		1,492
Lease incentive amortization	(165)		(173)
(Above) below market lease amortization	457		437
Total rental revenue	$	56,218	$	54,635

Leases

Lessee Disclosures

Lessor Disclosures

Rental revenue for the three months ended March 31, 2023 and 2022 comprised the following (in thousands):


	Three Months Ended March 31,
	2023		2022
Base rent and tenant charges	$	54,471	$	52,879
Accrued straight-line rental adjustment	1,455		1,492
Lease incentive amortization	(165)		(173)
(Above) below market lease amortization	457		437
Total rental revenue	$	56,218	$	54,635

Construction Contracts

3 Months Ended

Mar. 31, 2023

Contractors [Abstract]

Construction Contracts

Construction contract costs and estimated earnings in excess of billings represent reimbursable costs and amounts earned under contracts in progress as of the balance sheet date. Such amounts become billable according to contract terms, which usually consider the passage of time, achievement of certain milestones, or completion of the project. The Company expects to bill and collect substantially all construction contract costs and estimated earnings in excess of billings as of March 31, 2023 during the next 12 to 24 months.

Billings in excess of construction contract costs and estimated earnings represent billings or collections on contracts made in advance of revenue recognized.


	Three Months Ended March 31, 2023				Three Months Ended March 31, 2022
	Construction contract costs and estimated earnings in excess of billings		Billings in excess of construction contract costs and estimated earnings		Construction contract costs and estimated earnings in excess of billings		Billings in excess of construction contract costs and estimated earnings
Beginning balance	$	342	$	17,515	$	243	$	4,881
Revenue recognized that was included in the balance at the beginning of the period	—		(17,515)		—		(4,881)
Increases due to new billings, excluding amounts recognized as revenue during the period	—		17,150		—		15,055
Transferred to receivables	(347)		—		(266)		—
Construction contract costs and estimated earnings not billed during the period	1,206		—		121		—
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	5		(414)		23		(1)
Ending balance	$	1,206	$	16,736	$	121	$	15,054

The Company defers pre-contract costs when such costs are directly associated with specific anticipated contracts and their recovery is probable. Pre-contract costs of $1.4 million and $1.3 million were deferred as of March 31, 2023 and December 31, 2022, respectively. Amortization of pre-contract costs for the three months ended March 31, 2023 and 2022 was $0.3 million and $0.1 million, respectively.

Construction receivables and payables include retentions, which are amounts that are generally withheld until the completion of the contract or the satisfaction of certain restrictive conditions such as fulfillment guarantees. As of March 31, 2023 and December 31, 2022, construction receivables included retentions of $17.5 million and $8.3 million, respectively. The Company expects to collect substantially all construction receivables outstanding as of March 31, 2023 during the next 12 to 24 months. As of March 31, 2023 and December 31, 2022, construction payables included retentions of $28.5 million and $24.7 million, respectively. The Company expects to pay substantially all construction payables outstanding as of March 31, 2023 during the next 12 to 24 months.

The Company’s net position on uncompleted construction contracts comprised the following as of March 31, 2023 and December 31, 2022 (in thousands):


	March 31, 2023		December 31, 2022
Costs incurred on uncompleted construction contracts	$	400,028	$	571,465
Estimated earnings	14,280		22,162
Billings	(429,838)		(610,800)
Net position	$	(15,530)	$	(17,173)

Construction contract costs and estimated earnings in excess of billings	$	1,206	$	342
Billings in excess of construction contract costs and estimated earnings	(16,736)		(17,515)
Net position	$	(15,530)	$	(17,173)

The above table reflects the net effect of projects closed as of March 31, 2023 and December 31, 2022, respectively.

The Company’s balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) as of March 31, 2023 and 2022 were as follows (in thousands):


	Three Months Ended March 31,
	2023		2022
Beginning backlog	$	665,564	$	215,518
New contracts/change orders	70,792		228,603
Work performed	(84,516)		(24,682)
Ending backlog	$	651,840	$	419,439

The Company expects to complete a majority of the uncompleted contracts in place as of March 31, 2023 during the next 12 to 24 months.

- Definition

The entire disclosure for long-term contracts or programs.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 912
-SubTopic 310
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=84167097&loc=d3e55538-109407

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 912
-SubTopic 405
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=126938335&loc=d3e56417-109416

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(6)(d)(ii))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/subtopic&trid=2197326

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6471471&loc=d3e48698-109348

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(3)(c)(3))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

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Reference 11: http://fasb.org/us-gaap/role/ref/otherTransitionRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/topic&trid=2145070

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.5-02(3)(c)(2))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=126938061&loc=d3e54681-109401

+ Details

Notes Receivable and Current Expected Credit Losses - Changes in Allowance for Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Funded
Beginning balance	$ 1,292	$ 994
Unrealized credit loss provision (release)	203	184
Ending balance	1,495	1,178
Unfunded
Beginning balance	338	10
Unrealized credit loss provision (release)	(140)	421
Ending balance	198	431
Total
Beginning balance	1,630	1,004
Unrealized credit loss provision (release)	63	605
Ending balance	$ 1,693	$ 1,609

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

Derivative Financial Instruments - Schedule of LIBOR interest rate caps (Details) - USD ($)	Apr. 04, 2023	Apr. 03, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 01, 2022	Jul. 06, 2022	Jul. 05, 2022	Jul. 01, 2022	Apr. 07, 2022	Jan. 11, 2022	Mar. 04, 2021	Nov. 01, 2020
Derivative [Line Items]
Notional Amount			$ 1,203,951,000	$ 1,288,349,000
Interest rate caps
Derivative [Line Items]
Notional Amount			766,776,000
Premium Paid			$ 5,829,000
Cap rate purchased, interest rate			1.00%
Interest rate caps \| Minimum
Derivative [Line Items]
Strike Rate			1.00%
Interest rate caps \| Minimum \| Subsequent event \| Derivative Instrument, Expire on February 1, 2024
Derivative [Line Items]
Strike Rate		1.00%
Interest rate caps \| Maximum
Derivative [Line Items]
Strike Rate			3.00%
Interest rate caps \| Maximum \| Subsequent event \| Derivative Instrument, Expire on February 1, 2024
Derivative [Line Items]
Strike Rate		3.00%
Interest Rate Cap Two
Derivative [Line Items]
Cap rate sold, interest rate			3.00%
Derivatives not designated as accounting hedges
Derivative [Line Items]
Notional Amount			$ 439,479,000	539,479,000
Derivatives not designated as accounting hedges \| Interest rate caps
Derivative [Line Items]
Notional Amount			189,479,000	289,479,000
Derivatives not designated as accounting hedges \| Interest rate caps \| LIBOR
Derivative [Line Items]
Notional Amount											$ 14,479,000
Strike Rate											2.50%
Premium Paid											$ 4,000
Derivatives not designated as accounting hedges \| Interest rate caps \| Secured Overnight Financing Rate (SOFR) \| Subsequent event \| Derivative Instrument, Expire on February 1, 2024
Derivative [Line Items]
Strike Rate	1.84%
Derivatives not designated as accounting hedges \| Interest rate caps \| BSBY
Derivative [Line Items]
Notional Amount										$ 175,000,000
Strike Rate										4.00%
Premium Paid										$ 154,000
Derivatives not designated as accounting hedges \| Interest rate caps \| BSBY \| Subsequent event \| Derivative Instrument, Expire on February 1, 2024
Derivative [Line Items]
Notional Amount	$ 175,000,000	$ 175,000,000
Premium Paid	$ 0
Derivatives designated as accounting hedges \| Interest rate caps
Derivative [Line Items]
Notional Amount			577,297,000	$ 561,200,000
Derivatives designated as accounting hedges \| Interest rate caps \| Secured Overnight Financing Rate (SOFR)
Derivative [Line Items]
Notional Amount			$ 73,600,000		$ 32,822,000	$ 200,000,000	$ 35,100,000	$ 50,000,000				$ 84,375,000
Strike Rate												1.84%
Premium Paid					$ 1,370,000	$ 352,000	$ 120,000	$ 143,000				$ 91,000
Derivatives designated as accounting hedges \| Interest rate caps \| Secured Overnight Financing Rate (SOFR) \| Minimum
Derivative [Line Items]
Strike Rate					1.00%	1.00%	1.00%	1.00%
Derivatives designated as accounting hedges \| Interest rate caps \| Secured Overnight Financing Rate (SOFR) \| Maximum
Derivative [Line Items]
Strike Rate					3.00%	3.00%	3.00%	3.00%
Derivatives designated as accounting hedges \| Interest rate caps \| BSBY
Derivative [Line Items]
Notional Amount									$ 175,000,000
Premium Paid									$ 3,595,000
Derivatives designated as accounting hedges \| Interest rate caps \| BSBY \| Minimum
Derivative [Line Items]
Strike Rate									1.00%
Derivatives designated as accounting hedges \| Interest rate caps \| BSBY \| Maximum
Derivative [Line Items]
Strike Rate									3.00%

Segments - Reconciliation NOI of Net Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information
Net operating income	$ 43,353	$ 40,025
Depreciation and amortization	(18,468)	(18,557)
Amortization of right-of-use assets - finance leases	(277)	(278)
General and administrative expenses	(5,448)	(4,708)
Acquisition, development and other pursuit costs	0	(11)
Impairment charges	(102)	(47)
Interest expense	(12,302)	(9,031)
Loss on extinguishment of debt	0	(158)
Change in fair value of derivatives and other	(2,447)	4,182
Unrealized credit loss provision	(203)	(184)
Other income (expense), net	93	229
Income tax (provision) benefit	(188)	301
Net income	5,417	12,276
Real Estate Financing
Segment Reporting Information
Interest income	3,536	3,459
Corporate And Reconciling Items
Segment Reporting Information
Net operating income	43,353	40,025
Interest income	183	109
Depreciation and amortization	(18,468)	(18,557)
Amortization of right-of-use assets - finance leases	(277)	(278)
General and administrative expenses	(5,448)	(4,708)
Acquisition, development and other pursuit costs	0	(11)
Impairment charges	(102)	(47)
Interest expense	(11,205)	(8,206)
Loss on extinguishment of debt	0	(158)
Change in fair value of derivatives and other	(2,447)	4,182
Unrealized credit loss provision	(77)	(605)
Other income (expense), net	93	229
Income tax (provision) benefit	(188)	301
Net income	5,417	12,276
Corporate And Reconciling Items \| Real Estate Financing
Segment Reporting Information
Interest income	3,500	3,500
Interest expense	$ (1,100)	$ (800)

Equity - Additional Information (Details) - USD ($)			3 Months Ended
Equity - Additional Information (Details) - USD ($)	May 05, 2023	Mar. 10, 2020	Mar. 31, 2023	Dec. 31, 2022
Class of Stock [Line Items]
Percentage of operating partnership held			76.70%	76.70%
Preferred stock issued			$ 171,085,000	$ 171,085,000
Noncontrolling interests in investment entities \| Operating Partnership
Class of Stock [Line Items]
Ownership interest percentage in properties			$ 10,800,000	$ 24,100,000
Class A units
Class of Stock [Line Items]
Class A Units not held by Company (in shares)			20,611,190
At The Market Program \| Common stock
Class of Stock [Line Items]
Shares issued (in shares)			0
The Amendments \| Subsequent event
Class of Stock [Line Items]
Maximum aggregate offering price of shares to be sold (up to)	$ 205,000,000
Redeemable convertible preferred stock
Class of Stock [Line Items]
Preferred Stock dividend rate percentage			6.75%
Redeemable convertible preferred stock \| At The Market Program
Class of Stock [Line Items]
Preferred Stock dividend rate percentage		6.75%
Maximum aggregate offering price of shares to be sold (up to)		$ 300,000,000
Series A Preferred Stock \| At The Market Program
Class of Stock [Line Items]
Shares issued (in shares)			0

Condensed Consolidated Statements of Cash Flow - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2023

Mar. 31, 2022

OPERATING ACTIVITIES

Net income

$ 5,417

$ 12,276

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation of buildings and tenant improvements

14,114

13,638

Amortization of leasing costs, in-place lease intangibles and below market ground rents - operating leases

4,354

4,919

Accrued straight-line rental revenue

(1,455)

(1,492)

Amortization of leasing incentives and above or below-market rents

(292)

(264)

Amortization of right-of-use assets - finance leases

277

278

Accrued straight-line ground rent expense

Unrealized credit loss provision

605

Adjustment for uncollectable lease accounts

252

241

Noncash stock compensation

1,846

1,609

Impairment charges

102

Noncash interest expense

2,261

909

Noncash loss on extinguishment of debt

158

Change in fair value of derivatives and other

3,807

(4,182)

Changes in operating assets and liabilities:

Property assets

4,167

Property liabilities

(3,817)

(4,781)

Construction assets

2,493

(9,779)

Construction liabilities

(16,859)

17,067

Interest receivable

(3,709)

(784)

Net cash provided by operating activities

13,055

30,582

INVESTING ACTIVITIES

Development of real estate investments

(15,264)

(28,675)

Tenant and building improvements

(7,314)

(727)

Acquisitions of real estate investments, net of cash received

(93,162)

Notes receivable issuances

(6,699)

(17,651)

Notes receivable paydowns

11,545

Leasing costs

(950)

(862)

Leasing incentives

(20)

Contributions to equity method investments

(21,097)

(8,092)

Net cash used for investing activities

(51,344)

(137,624)

FINANCING ACTIVITIES

Proceeds from issuance of common stock, net of issuance cost

(149)

65,194

Common shares tendered for tax withholding

(1,105)

(773)

Debt issuances, credit facility and construction loan borrowings

46,710

284,113

Debt and credit facility repayments, including principal amortization

(2,417)

(218,354)

Debt issuance costs

(3,100)

Acquisition of NCI in consolidated RE investments

(3,901)

Distributions to noncontrolling interests

(506)

Dividends and distributions

(19,673)

(17,094)

Net cash provided by financing activities

22,860

106,085

Net decrease in cash, cash equivalents, and restricted cash

(15,429)

(957)

Cash, cash equivalents, and restricted cash, beginning of period

51,865

40,443

Cash, cash equivalents, and restricted cash, end of period

^[1]

36,436

39,486

Supplemental Disclosures (noncash transactions):

Increase in dividends and distributions payable

732

Decrease in accrued capital improvements and development costs

(3,683)

(4,664)

Operating Partnership units redeemed for common shares

132

Debt assumed at fair value in conjunction with real estate purchases

156,071

Noncontrolling interest in acquired real estate entity

$ 12,834

$ 23,065

[1]

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Statements of Cash Flows (in thousands):


	March 31, 2023		March 31, 2022
Cash and cash equivalents	$	33,817	$	32,910
Restricted cash (a)	2,619		6,576
Cash, cash equivalents, and restricted cash	$	36,436	$	39,486

(a) Restricted cash represents amounts held by lenders for real estate taxes, insurance, and reserves for capital improvements.

Real Estate Investment - Equity Method Investments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Apr. 01, 2022
Real Estate [Line Items]
Investment in equity method investment during period	$ 21,097	$ 8,092
Equity method investments	93,080		$ 71,983
Harbor Point Parcel 3
Real Estate [Line Items]
Equity method investments	$ 1,100		900
Harbor Point Parcel 3 \| Beatty Development Group
Real Estate [Line Items]
Interests in equity method investments	50.00%
Investment in equity method investment during period	$ 500
Maximum commitment	44,600
Equity method investments	40,000		39,800
Harbor Point Parcel 4
Real Estate [Line Items]
Equity method investments	$ 300		200
Harbor Point Parcel 4 \| Beatty Development Group
Real Estate [Line Items]
Interests in equity method investments	78.00%			78.00%
Investment in equity method investment during period	$ 21,000
Maximum commitment	101,500
Equity method investments	$ 53,100		$ 32,200
Potential increase in ownership percentage	90.00%

Notes Receivable and Current Expected Credit Losses

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Notes Receivable and Current Expected Credit Losses

Notes Receivable

The Company had the following notes receivable outstanding as of March 31, 2023 and December 31, 2022 ($ in thousands):


	Outstanding loan amount (a)										Interest compounding
Development Project	March 31, 2023		December 31, 2022		Maximum principal commitment			Interest rate
City Park 2	$	22,096	$	19,062	$	20,594		13.0	%		Annually
Solis Gainesville II	11,566		6,638		19,595			14.0	%	(b)	Annually
Interlock Commercial	88,858		86,584		107,000		(c)	15.0	%		None
Total mezzanine & preferred equity	122,520		112,284		$	147,189
Constellation Energy Building note receivable	—		12,834
Other notes receivable	11,671		11,512
Notes receivable guarantee premium	386		701
Allowance for credit losses(d)	(1,495)		(1,292)

Total notes receivable	$	133,082	$	136,039

________________________________________

(a) Outstanding loan amounts include any accrued and unpaid interest, and accrued exit fees, as applicable.

(b) The interest rate varies over the life of the loan, and the Company also earns an unused commitment fee of 10%. Refer below under “Solis Gainesville II” for further details.

(d) The amounts as of March 31, 2023 and December 31, 2022 exclude $0.2 million and $0.3 million of Current Expected Credit Losses ("CECL") allowance that relates to the unfunded commitments, which were recorded as a liability under Other liabilities in the consolidated balance sheets.

Interest on the notes receivable is accrued and funded utilizing the interest reserves for each loan, which are components of the respective maximum loan commitments, and such accrued interest is generally added to the loan receivable balances. The Company recognized interest income for the three months ended March 31, 2023 and 2022 as follows (in thousands):


	Three Months Ended March 31,
Development Project	2023			2022




City Park 2	$	670	(a)	$	19	(a)
Solis Gainesville II	593		(a)(b)	—
Interlock Commercial	2,273		(a)	2,826		(a)
Nexton Multifamily	—			614
Total mezzanine	3,536			3,459
Other interest income	183			109
Total interest income	$	3,719		$	3,568

________________________________________

(a) Includes recognition of interest income related to fee amortization.

(b) Includes recognition of unused commitment fees.

Solis Gainesville II

On March 29, 2023, the Solis Gainesville II preferred equity investment agreement was modified to adjust the interest rate. The interest rate of 14% remains effective through the first 24 months of the investment. Beginning on October 3, 2024, the investment will bear interest at a rate of 10% for twelve months. On October 3, 2025, the investment will again bear interest at a rate of 14% per annum through maturity. Additionally, the amendment introduced an unused commitment fee of 10% on the unfunded portion of the investment's maximum loan commitment, which is effective January 1, 2023. Both the interest and unused commitment fee compound annually.

Allowance for Loan Losses

The Company is exposed to credit losses primarily through its mezzanine lending activities and preferred equity investments. As of March 31, 2023, the Company had three mezzanine loans (including the City Park 2 and Solis Gainesville II preferred equity investments that are accounted for as notes receivable), each of which are financing development projects in various stages of completion or lease-up. Each of these projects is subject to a loan that is senior to the Company’s mezzanine loan. Interest on these loans is paid in kind and is generally not expected to be paid until a sale of the project after completion of the development.

The Company's management performs a quarterly analysis of the loan portfolio to determine the risk of credit loss based on

the progress of development activities, including leasing activities, projected development costs, and current and projected

mezzanine and senior construction loan balances. The Company estimates future losses on its notes receivable using risk

ratings that correspond to probabilities of default and loss given default. The Company's risk ratings are as follows:

•Pass: loans in this category are adequately collateralized by a development project with conditions materially consistent with the Company's underwriting assumptions.

•Special Mention: loans in this category show signs that the economic performance of the project may suffer as a result of slower-than-expected leasing activity or an extended development or marketing timeline. Loans in this category warrant increased monitoring by management.

•Substandard: loans in this category may not be fully collected by the Company unless remediation actions are taken. Remediation actions may include obtaining additional collateral or assisting the borrower with asset management activities to prepare the project for sale. The Company will also consider placing the loan on non-accrual status if it does not believe that additional interest accruals will ultimately be collected.

The Company updated the risk ratings for each of its notes receivable as of March 31, 2023 and obtained industry loan loss data relative to these risk ratings. Each of the outstanding loans as of March 31, 2023 was "Pass" rated. The Company's analysis resulted in an allowance for loan losses of approximately $1.7 million as of March 31, 2023. An allowance related to unfunded commitments of approximately $0.2 million as of March 31, 2023 was recorded as Other liabilities on the consolidated balance sheet.

At March 31, 2023, the Company reported $133.1 million of notes receivable, net of allowances of $1.5 million. At December 31, 2022, the Company reported $136.0 million of notes receivable, net of allowances of $1.3 million. Changes in the allowance for the three months ended March 31, 2023 and 2022 were as follows (in thousands):


	Three Months Ended March 31, 2023						Three Months Ended March 31, 2022
	Funded		Unfunded		Total		Funded		Unfunded		Total
Beginning balance	$	1,292	$	338	$	1,630	$	994	$	10	$	1,004

Unrealized credit loss provision (release)	203		(140)		63		184		421		605


Ending balance	$	1,495	$	198	$	1,693	$	1,178	$	431	$	1,609

The Company places loans on non-accrual status when the loan balance, together with the balance of any senior loan, approximately equals the estimated realizable value of the underlying development project. As of December 31, 2022, the Company had the Constellation Energy Building note, which bore interest at 3% per annum, on non-accrual status. The principal balance of the note receivable was adequately secured by the seller's partnership interest. On January 14, 2023, the Company acquired an additional 11% membership interest in the Constellation Energy Building, increasing its ownership interest to 90%, in exchange for full satisfaction of the note. As of March 31, 2023, there were no loans on non-accrual status.

Derivative Financial Instruments - Floating-to-Fixed Interest Rate Swaps (Details) - USD ($) $ in Thousands	May 04, 2023	Apr. 03, 2023	Mar. 31, 2023	Dec. 31, 2022
Derivative [Line Items]
Notional Amount			$ 1,203,951	$ 1,288,349
Interest rate swaps
Derivative [Line Items]
Notional Amount			437,175
Interest rate swaps \| Subsequent event
Derivative [Line Items]
Notional Amount	$ 100,000
Derivatives not designated as accounting hedges
Derivative [Line Items]
Notional Amount			439,479	539,479
Derivatives not designated as accounting hedges \| Interest rate swaps
Derivative [Line Items]
Notional Amount			250,000	250,000
Derivatives not designated as accounting hedges \| Senior Unsecured Term Loan 2.78% \| Interest rate swaps
Derivative [Line Items]
Notional Amount			$ 50,000
Swap Fixed Rate			2.78%
Debt effective rate			4.08%
Derivatives not designated as accounting hedges \| M&T unsecured term loan \| Interest rate swaps
Derivative [Line Items]
Notional Amount			$ 100,000
Swap Fixed Rate			3.50%
Debt effective rate			4.80%
Derivatives not designated as accounting hedges \| Senior unsecured term loan \| Interest rate swaps
Derivative [Line Items]
Notional Amount			$ 100,000
Swap Fixed Rate			3.43%
Debt effective rate			4.73%
Derivatives designated as accounting hedges \| Interest rate swaps
Derivative [Line Items]
Notional Amount			$ 187,175	$ 187,670
Derivatives designated as accounting hedges \| Senior Unsecured Term Loan 2.25% \| Interest rate swaps
Derivative [Line Items]
Notional Amount			$ 32,706
Swap Fixed Rate			2.17%
Debt effective rate			3.47%
Derivatives designated as accounting hedges \| Senior Unsecured Term Loan 3.02% \| Interest rate swaps
Derivative [Line Items]
Notional Amount			$ 10,500
Swap Fixed Rate			3.02%
Debt effective rate			4.32%
Derivatives designated as accounting hedges \| Senior Unsecured Term Loan 0.50%, Term Loan One \| Interest rate swaps
Derivative [Line Items]
Notional Amount			$ 25,000
Swap Fixed Rate			0.50%
Debt effective rate			1.80%
Derivatives designated as accounting hedges \| Senior Unsecured Term Loan 0.50%, Term Loan Two \| Interest rate swaps
Derivative [Line Items]
Notional Amount			$ 25,000
Swap Fixed Rate			0.50%
Debt effective rate			1.80%
Derivatives designated as accounting hedges \| Senior Unsecured Term Loan 0.44% \| Interest rate swaps
Derivative [Line Items]
Notional Amount			$ 25,000
Swap Fixed Rate			0.44%
Debt effective rate			1.74%
Derivatives designated as accounting hedges \| Thames Street Wharf \| Interest rate swaps
Derivative [Line Items]
Notional Amount			$ 68,969
Swap Fixed Rate			1.05%
Debt effective rate			2.35%
Derivatives designated as accounting hedges \| Thames Street Wharf \| Interest rate swaps \| Subsequent event
Derivative [Line Items]
Swap Fixed Rate		0.93%

Notes Receivable and Current Expected Credit Losses (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Summary of Notes Receivable Outstanding

The Company had the following notes receivable outstanding as of March 31, 2023 and December 31, 2022 ($ in thousands):


	Outstanding loan amount (a)										Interest compounding
Development Project	March 31, 2023		December 31, 2022		Maximum principal commitment			Interest rate
City Park 2	$	22,096	$	19,062	$	20,594		13.0	%		Annually
Solis Gainesville II	11,566		6,638		19,595			14.0	%	(b)	Annually
Interlock Commercial	88,858		86,584		107,000		(c)	15.0	%		None
Total mezzanine & preferred equity	122,520		112,284		$	147,189
Constellation Energy Building note receivable	—		12,834
Other notes receivable	11,671		11,512
Notes receivable guarantee premium	386		701
Allowance for credit losses(d)	(1,495)		(1,292)

Total notes receivable	$	133,082	$	136,039

________________________________________

(a) Outstanding loan amounts include any accrued and unpaid interest, and accrued exit fees, as applicable.

(b) The interest rate varies over the life of the loan, and the Company also earns an unused commitment fee of 10%. Refer below under “Solis Gainesville II” for further details.

Summary of Interest Income

The Company recognized interest income for the three months ended March 31, 2023 and 2022 as follows (in thousands):


	Three Months Ended March 31,
Development Project	2023			2022




City Park 2	$	670	(a)	$	19	(a)
Solis Gainesville II	593		(a)(b)	—
Interlock Commercial	2,273		(a)	2,826		(a)
Nexton Multifamily	—			614
Total mezzanine	3,536			3,459
Other interest income	183			109
Total interest income	$	3,719		$	3,568

________________________________________

(a) Includes recognition of interest income related to fee amortization.

(b) Includes recognition of unused commitment fees.

Allowance for Credit Losses on Financing Receivables

Changes in the allowance for the three months ended March 31, 2023 and 2022 were as follows (in thousands):


	Three Months Ended March 31, 2023						Three Months Ended March 31, 2022
	Funded		Unfunded		Total		Funded		Unfunded		Total
Beginning balance	$	1,292	$	338	$	1,630	$	994	$	10	$	1,004

Unrealized credit loss provision (release)	203		(140)		63		184		421		605


Ending balance	$	1,495	$	198	$	1,693	$	1,178	$	431	$	1,609

Construction Contracts - Summary of Backlog (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue, Remaining Performance Obligation [Roll Forward]
Beginning backlog	$ 665,564	$ 215,518
New contracts/change orders	70,792	228,603
Work performed	(84,516)	(24,682)
Ending backlog	$ 651,840	$ 419,439

Real Estate Investment - Property Acquisitions (Details) - Constellation Energy Building $ in Millions	Jan. 14, 2022 USD ($)	Jan. 14, 2023
Business Acquisition [Line Items]
Percentage of economic interest acquired	11.00%	11.00%
Percentage of ownership interest		0.90
Loan issued to seller	$ 12.8

Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues
Rental revenues	$ 56,218	$ 54,635
General contracting and real estate services revenues	$ 84,238	$ 24,650
Revenue, Product and Service [Extensible List]	Real Estate [Member]	Real Estate [Member]
Interest income	$ 3,719	$ 3,568
Total revenues	144,175	82,853
Expenses
Rental expenses	12,960	12,669
Real estate taxes	5,412	5,404
General contracting and real estate services expenses	81,170	23,821
Depreciation and amortization	18,468	18,557
Amortization of right-of-use assets - finance leases	277	278
General and administrative expenses	5,448	4,708
Acquisition, development and other pursuit costs	0	11
Impairment charges	102	47
Total expenses	123,837	65,495
Operating income	20,338	17,358
Interest expense	(12,302)	(9,031)
Loss on extinguishment of debt	0	(158)
Change in fair value of derivatives and other	(2,447)	4,182
Finance Receivable Allowance For Credit Loss And Off-Balance-Sheet, Credit Loss, Liability, Expense (Reversal)	(77)	(605)
Other income (expense), net	93	229
Income before taxes	5,605	11,975
Income tax (provision) benefit	(188)	301
Net income	5,417	12,276
Net income attributable to noncontrolling interests:
Investment entities	(154)	(100)
Operating Partnership	(554)	(2,183)
Net income attributable to Armada Hoffler Properties, Inc.	4,709	9,993
Preferred stock dividends	(2,887)	(2,887)
Net income attributable to common stockholders	$ 1,822	$ 7,106
Net income attributable to common stockholders per share (basic) (in dollars per share)	$ 0.03	$ 0.11
Net income attributable to common stockholders per share (diluted) (in dollars per share)	$ 0.03	$ 0.11
Weighted-average common shares outstanding (basic) (in shares)	67,787	67,128
Weighted-average common shares outstanding (diluted) (in shares)	67,787	67,128
Comprehensive income:
Net income	$ 5,417	$ 12,276
Unrealized cash flow hedge gains (losses)	(426)	7,722
Realized cash flow hedge (gains) losses reclassified to net income	(2,922)	787
Comprehensive income	2,069	20,785
Comprehensive income attributable to Armada Hoffler Properties, Inc.	2,169	16,502
Investment entities
Expenses
Net income	154	100
Comprehensive income:
Net income	154	100
Unrealized cash flow hedge gains (losses)	2
Realized cash flow hedge (gains) losses reclassified to net income	(39)
Comprehensive income attributable to noncontrolling interests:	(118)	(100)
Operating Partnership
Expenses
Net income	554	2,183
Comprehensive income:
Net income	554	2,183
Unrealized cash flow hedge gains (losses)	(100)	1,815
Realized cash flow hedge (gains) losses reclassified to net income	(672)	185
Comprehensive income attributable to noncontrolling interests:	$ 218	$ (4,183)

Derivative Financial Instruments - Schedule of Derivatives (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Derivative [Line Items]
Notional Amount	$ 1,203,951	$ 1,288,349
Asset, fair value	21,338	29,115
Liability, fair value	(990)	0
Interest rate swaps
Derivative [Line Items]
Notional Amount	437,175
Interest rate caps
Derivative [Line Items]
Notional Amount	766,776
Derivatives not designated as accounting hedges
Derivative [Line Items]
Notional Amount	439,479	539,479
Asset, fair value	1,489	4,303
Liability, fair value	(990)	0
Derivatives not designated as accounting hedges \| Interest rate swaps
Derivative [Line Items]
Notional Amount	250,000	250,000
Asset, fair value	91	2,201
Liability, fair value	(990)	0
Derivatives not designated as accounting hedges \| Interest rate caps
Derivative [Line Items]
Notional Amount	189,479	289,479
Asset, fair value	1,398	2,102
Liability, fair value	0	0
Derivatives designated as accounting hedges \| Interest rate swaps
Derivative [Line Items]
Notional Amount	187,175	187,670
Asset, fair value	9,267	11,247
Liability, fair value	0	0
Derivatives designated as accounting hedges \| Interest rate caps
Derivative [Line Items]
Notional Amount	577,297	561,200
Asset, fair value	10,582	13,565
Liability, fair value	$ 0	$ 0

Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The condensed consolidated financial statements include the financial position and results of operations of the Company and its consolidated subsidiaries, including the Operating Partnership, its wholly-owned subsidiaries, and any interests in variable interest entities ("VIEs") where the Company has been determined to be the primary beneficiary. All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition, and results of operations for the interim periods presented. The accompanying condensed consolidated financial statements were prepared in accordance with the requirements for interim financial information. Accordingly, these interim financial statements have not been audited and exclude certain disclosures required for annual financial statements. Also, the operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed. Such estimates are based on management’s historical experience and best judgment after considering past, current, and expected events and economic conditions. Actual results could differ significantly from management’s estimates.
Reclassifications	Reclassifications Certain items have been reclassified from their prior year classifications to conform to the current year presentation. Effective for the three months ended March 31, 2023, the Company has changed the presentation of its Consolidated Statements of Comprehensive Income. For the three months ended March 31, 2022, the Company reclassified interest income of $3.6 million from non-operating income to operating income. As a result, total revenues and operating income increased by $3.6 million compared to previous reporting. These reclassifications had no effect on net income or stockholder's equity as previously reported.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Reference Rate Reform In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04 Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848), which became effective on March 12, 2020. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. This ASU also provides optional expedients to enable companies to continue to apply hedge accounting to certain hedging relationships impacted by reference rate reform. Application of the guidance is optional and only available in certain situations. In January 2021, FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848). The amendments in this standard are elective and principally apply to entities that have derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. Similar to ASU No. 2020-04, provisions of this ASU are effective upon issuance. In December 2022, FASB issued ASU 2022-06 Deferral of the Sunset Date of Topic 848 which became effective immediately upon issuance. ASU 2022-06 deferred the sunset date of Topic 848 to December 31, 2024. During the three months ended March 31, 2023, the Company elected to apply the practical expedients to modifications of qualifying contracts as continuations of the existing contracts rather than as new contracts. The adoption of the new guidance did not have a material impact on the consolidated financial statements. Management will continue to evaluate the impacts of reference rate reform.
Segments	Segments The Company operates its business in five reportable segments: (i) office real estate, (ii) retail real estate, (iii) multifamily real estate, (iv) general contracting and real estate services, and (v) real estate financing. Refer to Note 1 of the Company's Form 10-K for the composition of properties within each property segment. Since the Company's Annual Report on Form 10-K for the year ended December 31, 2022, the Company introduced real estate financing as a reportable segment. The real estate financing segment includes the Company's mezzanine loans and preferred equity investments on development projects. The change in segmental presentation is a result of the chief operating decision-maker now separately reviewing the results of the real estate financing investments, which are no longer considered to be ad hoc investments, but an evolving portfolio. Net operating income ("NOI") is the primary measure used by the Company’s chief operating decision-maker to assess segment performance. NOI is calculated as segment revenues less segment expenses. Segment revenues include rental revenues for the property segments, general contracting and real estate services revenues for the general contracting and real estate services segment, and interest income for the real estate financing segment. Segment expenses include rental expenses and real estate taxes for the property segments, general contracting and real estate services expenses for the general contracting and real estate services segment, and interest expense for the real estate financing segment. Segment NOI for the general contracting and real estate services and real estate financing segments is also referred to as segment gross profit as illustrated in the table below. 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. Not all companies calculate NOI in the same manner. The Company considers NOI to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of the Company’s real estate, construction, and real estate financing businesses.
Allowance for Loan Losses	Allowance for Loan Losses The Company is exposed to credit losses primarily through its mezzanine lending activities and preferred equity investments. As of March 31, 2023, the Company had three mezzanine loans (including the City Park 2 and Solis Gainesville II preferred equity investments that are accounted for as notes receivable), each of which are financing development projects in various stages of completion or lease-up. Each of these projects is subject to a loan that is senior to the Company’s mezzanine loan. Interest on these loans is paid in kind and is generally not expected to be paid until a sale of the project after completion of the development. The Company's management performs a quarterly analysis of the loan portfolio to determine the risk of credit loss based on the progress of development activities, including leasing activities, projected development costs, and current and projected mezzanine and senior construction loan balances. The Company estimates future losses on its notes receivable using risk ratings that correspond to probabilities of default and loss given default. The Company's risk ratings are as follows: •Pass: loans in this category are adequately collateralized by a development project with conditions materially consistent with the Company's underwriting assumptions. •Special Mention: loans in this category show signs that the economic performance of the project may suffer as a result of slower-than-expected leasing activity or an extended development or marketing timeline. Loans in this category warrant increased monitoring by management. •Substandard: loans in this category may not be fully collected by the Company unless remediation actions are taken. Remediation actions may include obtaining additional collateral or assisting the borrower with asset management activities to prepare the project for sale. The Company will also consider placing the loan on non-accrual status if it does not believe that additional interest accruals will ultimately be collected.
Construction Contracts	Construction Contracts Construction contract costs and estimated earnings in excess of billings represent reimbursable costs and amounts earned under contracts in progress as of the balance sheet date. Such amounts become billable according to contract terms, which usually consider the passage of time, achievement of certain milestones, or completion of the project. The Company expects to bill and collect substantially all construction contract costs and estimated earnings in excess of billings as of March 31, 2023 during the next 12 to 24 months. Billings in excess of construction contract costs and estimated earnings represent billings or collections on contracts made in advance of revenue recognized. The Company defers pre-contract costs when such costs are directly associated with specific anticipated contracts and their recovery is probable.
Derivative Financial Instruments	Derivative Financial Instruments The Company enters into interest rate derivative contracts to manage exposure to interest rate risks. The Company does not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are recognized at fair value and presented within other assets and other liabilities in the condensed consolidated balance sheets. Gains and losses resulting from changes in the fair value of derivatives that are neither designated nor qualify as hedging instruments are recognized within the change in fair value of interest rate derivatives in the condensed consolidated statements of comprehensive income. For derivatives that qualify as cash flow hedges, the gain or loss is reported as a component of other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 — unobservable inputs Except as disclosed below, the carrying amounts of the Company’s financial instruments approximate their fair values. Financial assets and liabilities whose fair values are measured on a recurring basis using Level 2 inputs consist of interest rate swaps and caps. The Company measures the fair values of these assets and liabilities based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques. Financial assets and liabilities whose fair values are not measured at fair value but for which the fair value is disclosed include the Company's notes receivable and indebtedness. The fair value is estimated by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity, credit characteristics, and other terms of the arrangements, which are Level 3 inputs under the fair value hierarchy. In certain cases, the inputs used to estimate the fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Considerable judgment is used to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments.
Legal Proceedings	Legal Proceedings The Company is from time to time involved in various disputes, lawsuits, warranty claims, environmental and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. The Company currently is a party to various legal proceedings, none of which management expects will have a material adverse effect on the Company’s financial position, results of operations, or liquidity. Management accrues a liability for litigation if an unfavorable outcome is determined to be probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is determined to be probable and a range of loss can be reasonably estimated, management accrues the best estimate within the range; however, if no amount within the range is a better estimate than any other, the minimum amount within the range is accrued. Legal fees related to litigation are expensed as incurred. Management does not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on the Company’s financial position or results of operations; however, litigation is subject to inherent uncertainties. Under the Company’s leases, tenants are typically obligated to indemnify the Company from and against all liabilities, costs, and expenses imposed upon or asserted against it as owner of the properties due to certain matters relating to the operation of the properties by the tenant.

Indebtedness (Details) $ in Millions			3 Months Ended
Indebtedness (Details) $ in Millions	Dec. 06, 2022 USD ($)	Aug. 23, 2022 USD ($) extension_option	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Line of Credit \| Amended And Restated Credit Agreement
Indebtedness
Aggregate capacity under the credit facility		$ 550.0
Accordion feature maximum borrowing capacity		1,000.0
Line of Credit \| M&T Term Loan Agreement
Indebtedness
Aggregate capacity under the credit facility	$ 100.0
Accordion feature maximum borrowing capacity	$ 200.0
Line of Credit \| Revolving credit facility \| Amended And Restated Credit Agreement
Indebtedness
Aggregate capacity under the credit facility		$ 250.0
Number of extension options \| extension_option		2
Duration of extension option		6 months
Extension fee percentage		0.075%
Credit spread adjustment		0.10%
Line of credit, amount outstanding			$ 105.0	$ 61.0
Interest rate on credit facility as of end of period			6.20%
Interest rate on credit facility as of end of period after giving effect to interest rate caps and swaps			4.35%
Line of Credit \| Revolving credit facility \| M&T Term Loan Agreement
Indebtedness
Duration of extension option	1 year
Extension fee percentage	0.075%
Credit spread adjustment	0.10%
Line of credit, amount outstanding			$ 100.0	100.0
Interest rate on credit facility as of end of period			6.10%
Interest rate on credit facility as of end of period after giving effect to interest rate caps and swaps			4.80%
Line of Credit \| Revolving credit facility \| Secured Overnight Financing Rate (SOFR) \| M&T Term Loan Agreement
Indebtedness
Stated interest rate, basis spread on variable rate	1.00%
Line of Credit \| Revolving credit facility \| Federal Funds Rate \| M&T Term Loan Agreement
Indebtedness
Stated interest rate, basis spread on variable rate	0.50%
Line of Credit \| Term Loan Facility \| Amended And Restated Credit Agreement
Indebtedness
Aggregate capacity under the credit facility		$ 300.0
Credit spread adjustment		0.10%
Line of credit, amount outstanding			$ 300.0	$ 300.0
Interest rate on credit facility as of end of period			6.10%
Interest rate on credit facility as of end of period after giving effect to interest rate caps and swaps			3.68%
Line of Credit \| Minimum \| Revolving credit facility \| Amended And Restated Credit Agreement
Indebtedness
Basis points on unused commitment fee		0.15%
Line of Credit \| Minimum \| Revolving credit facility \| Secured Overnight Financing Rate (SOFR) \| Amended And Restated Credit Agreement
Indebtedness
Stated interest rate, basis spread on variable rate		1.30%
Line of Credit \| Minimum \| Term Loan Facility \| Secured Overnight Financing Rate (SOFR) \| Amended And Restated Credit Agreement
Indebtedness
Stated interest rate, basis spread on variable rate		1.25%
Line of Credit \| Maximum \| Revolving credit facility \| Amended And Restated Credit Agreement
Indebtedness
Basis points on unused commitment fee		0.25%
Line of Credit \| Maximum \| Revolving credit facility \| Secured Overnight Financing Rate (SOFR) \| Amended And Restated Credit Agreement
Indebtedness
Stated interest rate, basis spread on variable rate		1.85%
Line of Credit \| Maximum \| Term Loan Facility \| Secured Overnight Financing Rate (SOFR) \| Amended And Restated Credit Agreement
Indebtedness
Stated interest rate, basis spread on variable rate		1.80%
Construction loans
Indebtedness
Borrowings under construction loans			$ 2.7

Segments

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segments

The Company operates its business in five reportable segments: (i) office real estate, (ii) retail real estate, (iii) multifamily real estate, (iv) general contracting and real estate services, and (v) real estate financing. Refer to Note 1 of the Company's Form 10-K for the composition of properties within each property segment. Since the Company's Annual Report on Form 10-K for the year ended December 31, 2022, the Company introduced real estate financing as a reportable segment. The real estate financing segment includes the Company's mezzanine loans and preferred equity investments on development projects. The change in segmental presentation is a result of the chief operating decision-maker now separately reviewing the results of the real estate financing investments, which are no longer considered to be ad hoc investments, but an evolving portfolio.

Net operating income ("NOI") is the primary measure used by the Company’s chief operating decision-maker to assess segment performance. NOI is calculated as segment revenues less segment expenses. Segment revenues include rental revenues for the property segments, general contracting and real estate services revenues for the general contracting and real estate services segment, and interest income for the real estate financing segment. Segment expenses include rental expenses and real estate taxes for the property segments, general contracting and real estate services expenses for the general contracting and real estate services segment, and interest expense for the real estate financing segment. Segment NOI for the general contracting and real estate services and real estate financing segments is also referred to as segment gross profit as illustrated in the table below. 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. Not all companies calculate NOI in the same manner. The Company considers NOI to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of the Company’s real estate, construction, and real estate financing businesses.

The following table presents NOI for the Company's five reportable segments for the three months ended March 31, 2023 and 2022 (in thousands):


	Three Months Ended March 31,
	2023		2022
Office real estate
Rental revenues	$	19,574	$	17,023
Rental expenses	5,103		4,140
Real estate taxes	2,095		1,504
Segment net operating income	12,376		11,379
Retail real estate
Rental revenues	22,438		21,430
Rental expenses	3,564		3,501
Real estate taxes	2,207		2,238
Segment net operating income	16,667		15,691
Multifamily real estate
Rental revenues	14,206		16,182
Rental expenses	4,293		5,028
Real estate taxes	1,110		1,662
Segment net operating income	8,803		9,492
General contracting and real estate services
General contracting and real estate services revenues	84,238		24,650
General contracting and real estate services expenses	81,170		23,821
Segment gross profit	3,068		829
Real estate financing
Interest income	3,536		3,459
Interest expense(a)	1,097		825
Segment gross profit	2,439		2,634
Net operating income	$	43,353	$	40,025

________________________________________

(a) Interest expense within the real estate financing segment is allocated based on the average outstanding principal of notes receivable in the real estate financing portfolio, and the effective interest rate on the credit facility, as defined in Note 8.

The following table reconciles NOI to net income, the most directly comparable GAAP measure, for the three months ended March 31, 2023 and 2022 (in thousands):


	Three Months Ended March 31,
	2023		2022
Net operating income	$	43,353	$	40,025
Interest income(a)	183		109
Depreciation and amortization	(18,468)		(18,557)
Amortization of right-of-use assets - finance leases	(277)		(278)
General and administrative expenses	(5,448)		(4,708)
Acquisition, development and other pursuit costs	—		(11)
Impairment charges	(102)		(47)

Interest expense(b)	(11,205)		(8,206)

Loss on extinguishment of debt	—		(158)
Change in fair value of derivatives and other	(2,447)		4,182
Unrealized credit loss provision	(77)		(605)
Other income (expense), net	93		229
Income tax (provision) benefit	(188)		301
Net income	$	5,417	$	12,276

________________________________________

(a) Excludes real estate financing segment interest income of $3.5 million and $3.5 million for the three months ended March 31, 2023 and 2022, respectively.

(b) Excludes real estate financing segment interest expense of $1.1 million and $0.8 million for the three months ended March 31, 2023 and 2022, respectively.

Rental expenses represent costs directly associated with the operation and management of the Company’s real estate properties. Rental expenses include asset management expenses, property management fees, repairs and maintenance, insurance, and utilities.

General contracting and real estate services revenues for the three months ended March 31, 2023 and 2022 exclude revenue related to intercompany construction contracts of $13.7 million and $8.6 million, respectively, as it is eliminated in consolidation. General contracting and real estate services expenses for the three months ended March 31, 2023 and 2022 exclude expenses related to intercompany construction contracts of $13.5 million and $8.5 million, respectively.

Depreciation and amortization expense for the three months ended March 31, 2023 was $6.9 million, $7.3 million, and $4.2 million for the office, retail, and multifamily real estate segments. Depreciation and amortization expense for the three months ended March 31, 2022 was $6.6 million, $7.1 million, and $4.7 million for the office, retail, and multifamily real estate segments.

General and administrative expenses represent costs not directly associated with the operation and management of the Company’s real estate properties, general contracting and real estate services, and real estate financing businesses. These costs include corporate office personnel compensation and benefits, bank fees, accounting fees, legal fees, and other corporate office expenses.

Interest expense on secured property debt for the three months ended March 31, 2023 was $2.4 million, $2.1 million, and $2.6 million for the office, retail, and multifamily real estate segments, respectively. Interest expense on secured property debt for the three months ended March 31, 2022 was $2.0 million, $2.0 million, and $3.2 million for the office, retail, and multifamily real estate segments, respectively.

Assets included in each property segment are presented in Schedule III of the financial statements accompanying the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, which have not materially changed as of March 31, 2023. Assets attributable to the general contracting and real estate services segment are presented in Note 7 of these financial statements. Assets of the real estate financing segment are presented in Note 6 of these financial statements.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-URI https://asc.fasb.org/topic&trid=2134510

+ Details

Commitments and Contingencies - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) note_receivable	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Commitments and Contingencies
Line of credit, performance and payment bonds	$ 8,500	$ 8,500
Number of notes receivable \| note_receivable	3
Allowance for credit losses	$ 1,495	$ 1,292	$ 1,178	$ 994
Unfunded loan commitment
Commitments and Contingencies
Loans and leases receivable, commitments, variable rates	11,500
Operating Partnership
Commitments and Contingencies
Credit facility, amount outstanding	$ 1,900

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows:

Level 1 — quoted prices in active markets for identical assets or liabilities

Level 2 — observable inputs other than quoted prices in active markets for identical assets and liabilities

Level 3 — unobservable inputs

Except as disclosed below, the carrying amounts of the Company’s financial instruments approximate their fair values. Financial assets and liabilities whose fair values are measured on a recurring basis using Level 2 inputs consist of interest rate swaps and caps. The Company measures the fair values of these assets and liabilities based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques.

Financial assets and liabilities whose fair values are not measured at fair value but for which the fair value is disclosed include the Company's notes receivable and indebtedness. The fair value is estimated by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity, credit characteristics, and other terms of the arrangements, which are Level 3 inputs under the fair value hierarchy.

In certain cases, the inputs used to estimate the fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.

Considerable judgment is used to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments.

The carrying amounts and fair values of the Company’s financial instruments as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Indebtedness, net(a)	$	1,123,528	$	1,103,392	$	1,079,233	$	1,058,530
Notes receivable, net	133,082		133,082		136,039		136,039
Interest rate swap liabilities	990		990		—		—
Interest rate swap and cap assets	21,338		21,338		29,115		29,115

________________________________________

(a) Excludes $10.3 million and $11.0 million of deferred financing costs as of March 31, 2023 and December 31, 2022, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Related Party Transactions (Details) - USD ($)	3 Months Ended
Related Party Transactions (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Beatty Development Group
Related Party Transactions
Gross profit from related parties	$ 300,000
Construction Contracts
Related Party Transactions
Due from related parties	$ 0	$ 0

- Definition

For an unclassified balance sheet, amounts due from related parties including affiliates, employees, joint ventures, officers and stockholders, immediate families thereof, and pension funds.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(k)(1))
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (d)
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Real Estate Investment	3 Months Ended
Real Estate Investment	Mar. 31, 2023
Real Estate [Abstract]
Real Estate Investment	Real Estate Investment Property Acquisitions Constellation Energy Building On January 14, 2023, the Company acquired an additional 11% membership interest in the Constellation Energy Building, increasing its ownership interest to 90%, in exchange for full satisfaction of the $12.8 million loan that was extended to the seller upon the acquisition of the property in January 2022. Equity Method Investments Harbor Point Parcel 3 The Company owns a 50% interest in Harbor Point Parcel 3, a joint venture with Beatty Development Group, for purposes of developing T. Rowe Price's new global headquarters office building in Baltimore, Maryland. The Company is a noncontrolling partner in the joint venture and will serve as the project's general contractor. During the three months ended March 31, 2023, the Company invested $0.5 million in Harbor Point Parcel 3. The Company has an estimated equity commitment of up to $44.6 million relating to this project. As of March 31, 2023 and December 31, 2022, the carrying value of the Company's investment in Harbor Point Parcel 3 was $40.0 million and $39.8 million, respectively, which excludes $1.1 million and $0.9 million, respectively, of intra-entity profits eliminated in consolidation. For the three months ended March 31, 2023 and 2022, Harbor Point Parcel 3 had no operating activity; therefore, the Company received no allocated income. Based on the terms of the operating agreement, the Company has concluded that Harbor Point Parcel 3 is a VIE and that the Company holds a variable interest. The Company has significant influence over the project due to its 50% ownership interest; however, the Company does not have the power to direct the activities of the project that most significantly impact its performance. This includes activity as the managing member of the entity, which is a power that is retained by the Company's joint venture partner. Accordingly, the Company is not the project's primary beneficiary and, therefore, does not consolidate Harbor Point Parcel 3 in its consolidated financial statements. The Company's investment in the project is recorded as an equity method investment in the consolidated balance sheets. Harbor Point Parcel 4 On April 1, 2022, the Company acquired a 78% interest in Harbor Point Parcel 4, a real estate venture with Beatty Development Group, for purposes of developing a mixed-use project, which is planned to include multifamily units, retail space, and a parking garage. The Company holds an option to increase its ownership to 90%. The Company is a noncontrolling partner in the real estate venture and will serve as the project's general contractor. During the three months ended March 31, 2023, the Company invested $21.0 million in Harbor Point Parcel 4. The Company has an estimated equity commitment of up to $101.5 million relating to this project. As of March 31, 2023 and December 31, 2022, the carrying value of the Company's investment in Harbor Point Parcel 4 was $53.1 million and $32.2 million, respectively, which excludes $0.3 million and $0.2 million, respectively, of intra-entity profits eliminated in consolidation. For the three months ended March 31, 2023, Harbor Point Parcel 4 had no operating activity; therefore, the Company received no allocated income. Based on the terms of the operating agreement, the Company has concluded that Harbor Point Parcel 4 is a VIE and that the Company holds a variable interest. The Company has significant influence over the project due to its 78% ownership interest; however, the Company does not have the power to direct the activities of the project that most significantly impact its performance. This includes activity as the managing member of the entity, which is a power that is retained by the Company's partner. Accordingly, the Company is not the project's primary beneficiary and, therefore, does not consolidate Harbor Point Parcel 4 in its consolidated financial statements. The Company's investment in the project is recorded as an equity method investment in the consolidated balance sheets.

Business of Organization - Additional Information (Details) - property	Mar. 31, 2023	Dec. 31, 2022
Business And Organization [Line Items]
Percentage of operating partnership held	76.70%	76.70%
Operating Property
Business And Organization [Line Items]
Number of real estate properties	57
Operating Not Yet Stabilized Property
Business And Organization [Line Items]
Number of real estate properties	1
Development Property
Business And Organization [Line Items]
Number of real estate properties	1
General Partner
Business And Organization [Line Items]
Percentage of operating partnership held	0.10%

Condensed Consolidated Statements of Cash Flow (Parenthetical) - USD ($)
$ in Thousands

Mar. 31, 2023

Dec. 31, 2022

Mar. 31, 2022

Dec. 31, 2021

Statement of Cash Flows [Abstract]

Cash and cash equivalents

$ 33,817

$ 48,139

$ 32,910

Restricted cash

2,619

^[1]

3,726

6,576

^[1]

Cash, cash equivalents, and restricted cash

$ 36,436

^[2]

$ 51,865

$ 39,486

^[2]

$ 40,443

[1]

Restricted cash represents amounts held by lenders for real estate taxes, insurance, and reserves for capital improvements.

[2]

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Statements of Cash Flows (in thousands):


	March 31, 2023		March 31, 2022
Cash and cash equivalents	$	33,817	$	32,910
Restricted cash (a)	2,619		6,576
Cash, cash equivalents, and restricted cash	$	36,436	$	39,486

(a) Restricted cash represents amounts held by lenders for real estate taxes, insurance, and reserves for capital improvements.

Commitment and Contingencies (Tables)

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Summary of Outstanding Guarantees

The following table summarizes the outstanding guarantees made by the Company as of March 31, 2023 (in thousands):


Development project	Payment guarantee amount		Guarantee liability
Interlock Commercial (a)	$	37,450	$	386
Harbor Point Parcel 4 (b)	32,910		177
Total	$	70,360	$	563

_______________________________________

(a) This guarantee is subject to cancellation pending completion of the acquisition of The Interlock. Refer to Note 15 for further information.

(b) As of March 31, 2023, no amounts have been funded on this senior loan.

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company provides general contracting services to certain related party entities that are included in these condensed consolidated financial statements. Revenue and gross profit from construction contracts with these entities for the three months ended March 31, 2023 and 2022 were not material. There were no outstanding construction receivables due from related parties as of March 31, 2023 and December 31, 2022. The Company provides general contracting services to the Harbor Point Parcel 3 and Harbor Point Parcel 4 ventures. See Note 5 for more information. During the three months ended March 31, 2023, the Company recognized gross profit of $0.3 million, relating to these construction contracts. The Operating Partnership entered into tax protection agreements that indemnify certain directors and executive officers of the Company from their tax liabilities resulting from the potential future sale of certain of the Company’s properties prior to May 13, 2023.

Business of Organization	3 Months Ended
Business of Organization	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business of Organization	Business of Organization Armada Hoffler Properties, Inc. (the "Company") is a vertically-integrated, self-managed real estate investment trust ("REIT") with over four decades of experience developing, building, acquiring, and managing high-quality office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. The Company also provides general construction and development services to third-party clients, in addition to developing and building properties to be placed in their stabilized portfolio. The Company is the sole general partner of Armada Hoffler, L.P. (the "Operating Partnership") and, as of March 31, 2023, owned 76.7% of the economic interest in the Operating Partnership, of which 0.1% is held as general partnership units. The operations of the Company are carried on primarily through the Operating Partnership and the wholly owned subsidiaries thereof. As of March 31, 2023, the Company's property portfolio consisted of 57 stabilized operating properties, one operating property not yet stabilized, and one property under development. Refer to Note 5 for information related to the Company's recent acquisitions and dispositions of properties.

Derivative Financial Instruments - Additional Information (Details) $ in Millions	Mar. 31, 2023 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gain reclassified during next 12 months	$ 10.4

Construction Contracts - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Construction receivables retentions	$ 17.5		$ 8.3
Minimum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected completion of contracts	12 months
Maximum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected completion of contracts	24 months
Construction
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Retentions	$ 28.5		24.7
Construction \| Maximum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected completion of contracts	24 months
Portion Attributable To Pending Contracts
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred pre-contract costs	$ 1.4		$ 1.3
Amortization of pre-contract costs	$ 0.3	$ 0.1

Equity

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Equity

Stockholders’ Equity

On March 10, 2020, the Company commenced an at-the-market continuous equity offering program (the "ATM Program") through which the Company may, from time to time, issue and sell shares of its common stock and shares of its 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock (the "Series A Preferred Stock") having an aggregate offering price of up to $300.0 million, to or through its sales agents and, with respect to shares of its common stock, may enter into separate forward sales agreements to or through the forward purchaser.

During the three months ended March 31, 2023, the Company did not issue any shares of common stock or Series A Preferred Stock under the ATM Program. Shares having an aggregate offering price of $205.0 million remained unsold under the ATM Program as of May 5, 2023.

Noncontrolling Interests

As of both March 31, 2023 and December 31, 2022, the Company held a 76.7% economic interest in the Operating Partnership, respectively. As of March 31, 2023, the Company also held a preferred interest in the Operating Partnership in the form of preferred units with a liquidation preference of $171.1 million. The Company is the primary beneficiary of the Operating Partnership as it has the power to direct the activities of the Operating Partnership and the rights to absorb 76.7% of the net income of the Operating Partnership. As the primary beneficiary, the Company consolidates the financial position and results of operations of the Operating Partnership. Noncontrolling interests in the Operating Partnership represent units of limited partnership interest in the Operating Partnership not held by the Company. As of March 31, 2023, there were 20,611,190 Class A units of limited partnership interest in the Operating Partnership ("Class A Units") not held by the Company. The Company's financial position and results of operations are the same as those of the Operating Partnership.

Additionally, the Operating Partnership owns a majority interest in certain non-wholly-owned operating and development properties. The noncontrolling interest for consolidated real estate entities was $10.8 million and $24.1 million as of March 31, 2023 and December 31, 2022, respectively, which represents the minority partners' interest in certain joint venture entities.

Dividends and Distributions

During the three months ended March 31, 2023, the following dividends/distributions were declared or paid:

Equity type

Declaration Date

Record Date

Payment Date

Dividends per Share/Unit

Aggregate Dividends/Distributions on Stock and Units (in thousands)

Common Stock/Class A Units

11/04/2022

12/28/2023

01/05/2023

0.19

16,785

Common Stock/Class A Units

02/28/2023

03/29/2023

04/06/2023

0.19

16,825

Series A Preferred Stock

11/04/2022

01/03/2023

01/13/2023

0.421875

2,887

Series A Preferred Stock

02/28/2023

04/03/2023

04/14/2023

0.421875

2,887

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI https://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 16
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 50
-Paragraph 6
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008

+ Details

Segments - Net Income of Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information
Rental revenues	$ 56,218	$ 54,635
Rental expenses	12,960	12,669
Real estate taxes	5,412	5,404
General contracting and real estate services revenues	84,238	24,650
Segment gross profit	43,353	40,025
Office Real Estate
Segment Reporting Information
Rental revenues	19,574	17,023
Rental expenses	5,103	4,140
Real estate taxes	2,095	1,504
Interest expense	2,400	2,000
Office Real Estate \| Operating Segments
Segment Reporting Information
Segment gross profit	12,376	11,379
Retail Real Estate
Segment Reporting Information
Rental revenues	22,438	21,430
Rental expenses	3,564	3,501
Real estate taxes	2,207	2,238
Interest expense	2,100	2,000
Retail Real Estate \| Operating Segments
Segment Reporting Information
Segment gross profit	16,667	15,691
Multifamily Real Estate
Segment Reporting Information
Rental revenues	14,206	16,182
Rental expenses	4,293	5,028
Real estate taxes	1,110	1,662
Interest expense	2,600	3,200
Multifamily Real Estate \| Operating Segments
Segment Reporting Information
Segment gross profit	8,803	9,492
General Contracting and Real Estate Services
Segment Reporting Information
General contracting and real estate services revenues	84,238	24,650
General contracting and real estate services expenses	81,170	23,821
General Contracting and Real Estate Services \| Operating Segments
Segment Reporting Information
Segment gross profit	3,068	829
Real Estate Financing
Segment Reporting Information
Interest income	3,536	3,459
Interest expense	1,097	825
Real Estate Financing \| Operating Segments
Segment Reporting Information
Segment gross profit	$ 2,439	$ 2,634

Segments (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Schedule of Net Operating Income of Reportable Segments

The following table presents NOI for the Company's five reportable segments for the three months ended March 31, 2023 and 2022 (in thousands):


	Three Months Ended March 31,
	2023		2022
Office real estate
Rental revenues	$	19,574	$	17,023
Rental expenses	5,103		4,140
Real estate taxes	2,095		1,504
Segment net operating income	12,376		11,379
Retail real estate
Rental revenues	22,438		21,430
Rental expenses	3,564		3,501
Real estate taxes	2,207		2,238
Segment net operating income	16,667		15,691
Multifamily real estate
Rental revenues	14,206		16,182
Rental expenses	4,293		5,028
Real estate taxes	1,110		1,662
Segment net operating income	8,803		9,492
General contracting and real estate services
General contracting and real estate services revenues	84,238		24,650
General contracting and real estate services expenses	81,170		23,821
Segment gross profit	3,068		829
Real estate financing
Interest income	3,536		3,459
Interest expense(a)	1,097		825
Segment gross profit	2,439		2,634
Net operating income	$	43,353	$	40,025

________________________________________

Reconciliation of Net Income

The following table reconciles NOI to net income, the most directly comparable GAAP measure, for the three months ended March 31, 2023 and 2022 (in thousands):


	Three Months Ended March 31,
	2023		2022
Net operating income	$	43,353	$	40,025
Interest income(a)	183		109
Depreciation and amortization	(18,468)		(18,557)
Amortization of right-of-use assets - finance leases	(277)		(278)
General and administrative expenses	(5,448)		(4,708)
Acquisition, development and other pursuit costs	—		(11)
Impairment charges	(102)		(47)

Interest expense(b)	(11,205)		(8,206)

Loss on extinguishment of debt	—		(158)
Change in fair value of derivatives and other	(2,447)		4,182
Unrealized credit loss provision	(77)		(605)
Other income (expense), net	93		229
Income tax (provision) benefit	(188)		301
Net income	$	5,417	$	12,276

________________________________________

(a) Excludes real estate financing segment interest income of $3.5 million and $3.5 million for the three months ended March 31, 2023 and 2022, respectively.

(b) Excludes real estate financing segment interest expense of $1.1 million and $0.8 million for the three months ended March 31, 2023 and 2022, respectively.

Notes Receivable and Current Expected Credit Losses - Schedule of Interest on the Mezzanine Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	$ 3,719	$ 3,568
Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	3,536	3,459
Other interest income
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	183	109
City Park 2 \| Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	670	19
Solis Gainesville II \| Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	593	0
Interlock Commercial \| Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	2,273	2,826
Nexton Multifamily \| Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	$ 0	$ 614