UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 20, 2013
ARMADA HOFFLER PROPERTIES, INC.
(Exact name of registrant as specified in its charter)
| Maryland | 001-35908 | 46-1214914 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| 222 Central Park Avenue, Suite 2100, Virginia Beach, Virginia | 23462 | |||
| (Address of principal executive offices) | (Zip Code) | |||
(757) 366-4000
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c) |
Item 7.01. Regulation FD Disclosure.
On September 24, 2013, Armada Hoffler Properties, Inc. (the “Company”) will host an Investor Day, beginning at 12:30 p.m. EDT. The Company will webcast the presentations by the Company’s management team on the Internet in the Investor Relations section of the Company’s website at www.ArmadaHoffler.com. A replay of the webcast will be available on the Company’s website until midnight, October 8, 2013. In the presentations, the Company’s management team will discuss, among other things, the Company’s development pipeline, construction business, portfolio performance and financing activity.
A copy of the presentation materials to be used by the Company is attached to this Current Report on Form 8-K as Exhibits 99.1 and 99.2. These materials will also be available in the Investor Relations section of the Company’s website. A copy of the Press Release announcing the Investor Day and providing information on accessing the webcast of the presentations on the Company’s website is attached to this Current Report on Form 8-K as Exhibit 99.3.
In accordance with General Instructions B.2 and B.6 of Form 8-K, the information included in this Current Report on Form 8-K (including Exhibits 99.1, 99.2 and 99.3 hereto), shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit |
Description | |
| 99.1 | Investor Day 2013 Presentation Materials. | |
| 99.2 | Hampton Roads Market Overview Materials. | |
| 99.3 | Press Release, dated September 20, 2013. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ARMADA HOFFLER PROPERTIES, INC. | ||||
| Dated: September 24, 2013 | By: | /s/ Michael P. O’Hara | ||
| Michael P. O’Hara | ||||
| Chief Financial Officer and Treasurer | ||||
EXHIBIT INDEX
| Exhibit |
Description | |
| 99.1 | Investor Day 2013 Presentation Materials. | |
| 99.2 | Hampton Roads Market Overview Materials. | |
| 99.3 | Press Release, dated September 20, 2013. | |
 Welcome –
Investor Day 2013
Julie Trudell, Vice President of Investor Relations
Exhibit 99.1 |
 Forward-Looking Statements
1
We make statements in this presentation that are forward-looking statements
within the meaning of the federal securities laws. In particular, statements pertaining to
our sources and uses of capital, the availability and terms of third party financing,
our progress in developing properties in our development pipeline, our prospects
for future pipeline development projects, the performance of our property portfolio,
estimates of revenues and profits from general contracting and real estate
services, anticipated market conditions and our results of operations contain
forward-looking statements. You can identify forward-looking statements by the use of
forward-looking terminology such as “believes,” “expects,”
“may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates” or
“anticipates” or the negative of these words and phrases or similar words
or phrases which are predictions of or indicate future events or trends and which do not
relate solely to historical matters. You can also identify forward-looking
statements by discussions of strategy, plans or intentions.
Forward-looking statements involve numerous risks and uncertainties and you
should not rely on them as predictions of future events. Forward-looking statements
depend on assumptions, data or methods which may be incorrect or imprecise and we may
not be able to realize them. We do not guarantee that the transactions and
events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and
future events to differ materially from those set forth or contemplated in the
forward-looking statements:
• adverse economic or real estate developments, either nationally
or in the markets in which our properties are located;
• our failure to develop the properties in our identified
development pipeline successfully, on the anticipated timeline or at the anticipated costs;
• our failure to generate sufficient cash flows to service our
outstanding indebtedness;
• defaults on, early terminations of or non-renewal of leases by
tenants, including significant tenants;
• bankruptcy or insolvency of a significant tenant or a substantial
number of smaller tenants;
• difficulties in identifying or completing property development or
acquisition opportunities, including our proposed acquisition of the Liberty Apartments;
• our failure to successfully operate developed and acquired
properties;
• fluctuations in interest rates and increased operating costs;
• our failure to obtain necessary outside financing on favorable
terms or at all, including any increase in the borrowing capacity under our credit facility;
• our failure to generate income in our general contracting and real
estate services segment in amounts that we anticipate;
• general economic conditions;
• financial market fluctuations;
• risks that affect the general retail environment or the market for
office properties or multifamily units;
• the competitive environment in which we operate;
• decreased rental rates or increased vacancy rates;
• conflicts of interests with our officers and directors;
• lack or insufficient amounts of insurance;
• environmental uncertainties and risks related to adverse weather
conditions and natural disasters;
• other factors affecting the real estate industry generally;
• our failure to qualify and maintain our qualification as a REIT
for U.S. federal income tax purposes;
• limitations imposed on our business and our ability to satisfy
complex rules in order for us to qualify as a REIT for U.S. federal income tax purposes; and
• changes in governmental regulations or interpretations thereof,
such as real estate and zoning laws and increases in real property tax rates and taxation of REITs.
While forward-looking statements reflect our good faith beliefs, they are not
guarantees of future performance. You should not place undue reliance on any
forward-looking statements that are based on information currently available to
us. For a further discussion of these and other factors that could impact our future
results, performance or transactions, see the section titled “Risk Factors”
in our Prospectus filed with the Securities and Exchange Commission (“SEC”) pursuant to
Rule 424(b)(4) on May 9, 2013 as part of our Registration Statement on Form S-11
and our subsequent quarterly reports on Form 10-Q and current reports on Form 8-K
filed with or furnished to the SEC.
We disclaim any obligation to publicly update or revise any forward-looking
statement to reflect changes in underlying assumptions or factors, of new information,
data or methods, future events or other changes after the date of this presentation,
except as required by applicable law. |
 CEO Remarks
Lou Haddad |
 Company Overview
Stable Portfolio
Development Pipeline
Construction Fee Business
Agenda
3 |
 National Reach with Strategic Mid-
Atlantic Focus
4
Current Portfolio & Development Pipeline
Previous Construction or Development Projects
Office
Retail
Multifamily
Pipeline
Property Key
AHH’s portfolio is concentrated in attractive markets with diverse growth drivers
and favorable supply/demand characteristics |
 Armada Hoffler has built
irreplaceable relationships
and credibility over decades
executing large, complex,
multi-use projects:
Provides unique access
Drives repeat business
National referral base
Sustainable competitive
advantage
Deep and Extensive Relationships
5
Construction, Development and Corporate Relationships
Public & Private Partnerships
H & S
Properties |
 Executive Team
6
Daniel A. Hoffler
Chairman of the Board
A. Russell Kirk
Vice Chairman
of the Board
Louis S. Haddad
President & CEO
Anthony P. Nero
President of
Development
Eric Apperson
President of
Construction
Shelly Hampton,
President of Asset
Management
Eric L. Smith
VP of Operations
Michael P. O’Hara
Chief Financial Officer |
 Company Overview
Stable Portfolio
Development Pipeline
Construction Fee Business
Agenda
7 |
 98.3%
98.8%
98.2%
98.0%
96.0%
92.4%
94.1%
93.4%
50%
60%
70%
80%
90%
100%
2006
2007
2008
2009
2010
2011
2012
2013 Q2
97.6%
97.6%
95.6%
94.6%
93.4%
93.5%
93.9%
94.6%
50%
60%
70%
80%
90%
100%
2006
2007
2008
2009
2010
2011
2012
2013 Q2
85.7%
88.9%
85.9%
95.5%
93.3%
94.9%
91.2%
50%
60%
70%
80%
90%
100%
2007
2008
2009
2010
2011
2012
2013 Q2
Stable Portfolio
Historical
Office
Occupancy
(1)
_____________________
(1) Occupancy as of 12/31 for each period except for 2013
Q2 8
Historical
Retail
Occupancy
(1)
Historical
Multifamily
Occupancy
(1) |
 Well Managed Lease Terms
_____________________
(1) As of 6/30/13
Year of Lease Expirations
9
(% Office Portfolio ABR)
(1)
Well-managed Office Lease Terms
(% Retail Portfolio ABR)
(1)
Well-managed Retail Lease Terms
Year of Lease Expirations
4.2%
6.4%
10.7%
3.2%
6.4%
15.0%
5.1%
3.2%
3.9%
5.2%
7.7%
29.1%
0%
5%
10%
15%
20%
25%
30%
35%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
There-
after
1.8%
7.7%
10.0%
10.1%
11.0%
9.5%
20.8%
7.8%
2.6%
7.0%
4.2%
7.4%
0%
5%
10%
15%
20%
25%
30%
35%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
There-
after |
 Company Overview
Stable Portfolio
Development Pipeline
Construction Fee Business
Agenda
10 |
 Value Creation of Pipeline Portfolio
11
$12M -
$14M
$8M -
$10M
~3 Years
Stabilized Portfolio NOI |
 Company Overview
Stable Portfolio
Development Pipeline
Construction Fee Business
Agenda
12 |
 CEO Remarks
Lou Haddad |
 Development Update
Tony Nero, President of Development |
 $ in
thousands Property
Location
Property Type
Estimated Cost
Estimated Date
of Completion
4525 Main Street (Main Street Office)
Virginia Beach, VA
Office
50,863
$
Q3 2014
Encore Apartments (Main Street
Apartments)
Virginia Beach, VA
Multifamily
32,845
Q3 2014
Whetstone Apartments (Jackson Street
Apartments)
Durham, NC
Multifamily
27,857
Q3 2014
Sandbridge Commons
Virginia Beach, VA
Retail
13,675
Q1 2015
Brooks Crossing
Newport News, VA
Office
12,793
Q1 2015
Greentree Shopping Center
Chesapeake, VA
Retail
5,402
Q3 2014
Liberty Apartments (Apprentice School
Apartments)
Newport News, VA
Multifamily
31,900
Q4 2013
(1)
175,335
$
(1) Could be delayed up to 2 months
Pipeline Represents ~ $175 Million
New
Projects
to
be
delivered
in
2014
-
2015
15 |
 4525 Main Street
16 |
 Encore Apartments
17 |
 Whetstone Apartments
18 |
 Whetstone Apartments
19 |
 Sandbridge Commons
20 |
 Brooks Crossing
21
21 |
 Greentree Shopping Center
22 |
 Johns Hopkins Project
23 |
 Liberty Apartments
24 |
 Development Update
Tony Nero, President of Development |
 The Stable Portfolio
Shelly Hampton, President of Asset Management |
 Asset Management Objectives
•
Value Maximization
•
Risk Management
Diverse, Stable Portfolio
Lease Expiration and Rollover Strategies
Agenda
27 |
 Asset Management Objectives
•
Value Maximization
•
Risk Management
Diverse, Stable Portfolio
Lease Expiration and Rollover Strategies
Agenda
28 |
 Asset Management Objectives
•
Value Maximization
•
Risk Management
Diverse, Stable Portfolio
Lease Expiration and Rollover Strategies
Agenda
29 |
 Office
•
7 properties 1.0 million SF
•
93.4% occupied
•
294,000 SF in pipeline
Retail
•
15 properties 1.1 million SF
•
94.6% occupied
•
90,600 SF in pipeline
Multi-Family
•
2 properties totaling 626 units
•
91.2% occupied
•
Estimated 688 units in pipeline
Diverse, Stable Mid-Atlantic Portfolio
30
Portfolio by Asset Class
(% Total Portfolio ABR)
_____________________
As of 6/30/13
Office
44.6%
Retail
37.8%
Multifamily
17.6% |
 Asset Management Objectives
•
Value Maximization
•
Risk Management
Diverse, Stable Portfolio
Lease Expiration and Rollover Strategies
Agenda
31 |
 Strategy for Office Lease Rollover
_____________________
(1)
Occupancy as of 12/31 for each period except for 2013 Q2
(2)
As of 6/30/13
Year of Lease Expirations
32
98.3%
98.8%
98.2%
98.0%
96.0%
92.4%
94.1%
93.4%
50%
60%
70%
80%
90%
100%
2006
2007
2008
2009
2010
2011
2012
2013 Q2
4.2%
6.4%
10.7%
3.2%
6.4%
15.0%
5.1%
3.2%
3.9%
5.2%
7.7%
29.1%
0%
5%
10%
15%
20%
25%
30%
35%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
There-
after
(%
Office
Portfolio
ABR)
(2)
Well-managed Lease Terms
Historical Occupancy
(1) |
 Strategies for Office Lease Vacancies
33
6.6%
Office
Vacancy
-
by
Property
_____________________
As of 6/30/13
One Columbus
Oyster Point
Armada Hoffler
Tower
Two Columbus
Richmond Tower |
 Attractive Portfolio Fundamentals
Retail
_____________________
(1)
Occupancy as of 12/31for each period except for 2013 Q2
(2)
Excludes ground leases
(3)
As of 6/30/13
Year of Lease Expirations
34
(% Retail
Portfolio ABR)
(2)(3)
Well-managed Lease Terms
1.8%
7.7%
10.0%
10.1%
11.0%
9.5%
20.8%
7.8%
2.6%
7.0%
4.2%
7.4%
0%
5%
10%
15%
20%
25%
97.6%
97.6%
95.6%
94.6%
93.4%
93.5%
93.9%
94.6%
50%
60%
70%
80%
90%
100%
2006
2007
2008
2009
2010
2011
2012
2013 Q2
Historical
Occupancy
(1)
Representative Tenants |
 Strategy for Retail Lease Vacancy
35
5.4% Retail Vacancy -
by Property
_____________________
As of 6/30/13
Hanbury Village
North Point Center
Dick's at Town Center
Studio 56 Retail
Bermuda Crossroads
Broad Creek Shopping
Center
Gainsborough Square |
 Multifamily Overview
The Cosmopolitan Apartments
Virginia Beach, VA
342 units
Built in 2006
(3)
Smith’s Landing
Blacksburg, VA
284 units
Built in 2009
Historical
Occupancy
(1)
_____________________
(1)
Occupancy as of 12/31for each period except for 2013 Q2
(2)
Represents estimates that may change as the development process proceeds
(3)
2007 was first year of operations
85.7%
88.9%
85.9%
95.5%
93.3%
94.9%
91.2%
50%
60%
70%
80%
90%
100%
2007
2008
2009
2010
2011
2012
2013 Q2
Our contributed portfolio consists of 2 properties totaling 626 units that are 91.2%
occupied with an additional 3 properties and 688 units in the pipeline (2)
36 |
 The Stable Portfolio
Shelly Hampton, President of Asset Management |
 Construction Insight
Eric Apperson, President of Construction |
 •
Support development pipeline
–
Provide accurate insight into construction cost environment
–
Manage construction costs
throughout development project
–
Manage construction risks
throughout development projects
–
Ensure timely delivery of REIT’s development pipeline projects
•
Source both third-party construction projects and development
pipeline opportunities by projecting strength, skill, and success to
existing and potential clients
•
Provide consistent source of incrementally accretive FFO
Benefits of Construction Platform
39 |
 Risk: Subcontractor financial status, safety record, insurance
coverage, licensure, staff, etc.
–
Solution: Prequalification process conducted by our staff
accountants, safety department, preconstruction department
and executives.
Risk: Owner contract terms
–
Solution: Complete review and specific negotiations of terms.
Risk: Project cost control
–
Solution: Monthly review of accounting reports and quarterly
detailed analysis performed by project management,
controller and construction executives.
Managing Successful Construction
Projects –
Risk Management
40 |
 •
Risk: Subcontractors paying their suppliers and sub-subcontractors
–
Solution: Conduct monthly supplier payment inquiries and/or
require joint checks.
•
Risk: Stored material payments to subcontractors
–
•
Risk: Deposits for material
–
Solution: Require an advanced payment bond to ensure that
we have collateral.
Managing Successful Construction
Projects –
Risk Management (continued)
41
Solution: Detailed process including requiring affidavits,
invoices, bill of sale, lien waivers or joint checks, insurance,
and physical confirmation of material. This ensures that we are
getting value for the payment, that the payment gets to the
provider, that we own the material, and that it is insured.
|
 •
Risk: Subcontract and supplier procurement
–
Solution: Require a material and purchasing tracking log for
each project. These logs determine the dates for bidding the
trade work, contracting the trade work, material and system
submittal and show fabrication and delivery time frames.
•
Risk: Schedule management and delays
–
Solution: The best way to manage is by being proactive and
communicate. Prepare a schedule with enough time to
perform the work including a reasonable amount of weather
related impact days. We typically use Saturday as a make-up
day for time lost during the week. Monitor and manage the
schedule daily by the superintendent, weekly in staff meetings,
and discuss monthly with the owner. Follow all notice
provisions in the owner contract regarding lost production due
to weather related impacts.
Managing Successful Construction
Projects –
Risk Management (continued)
42 |
 Case Study on a Challenging
Construction Projects
43
Four Seasons / Legg Mason
•
Slurry Wall –
30”
thick slurry wall installed around a 3.5 acre site
within 20’
of Baltimore’s Inner Harbor (Patapsco River).
•
Mass
excavation
–
Excavate
240,000
cubic
yards
of
dirt,
to
a
depth
of 65’
below street level.
•
Impacted Soil –
Adjacent to Allied Signal Superfund chromium site.
The site had inherent groundwater issues. Special provisions
necessary to ensure no ground water migration during
construction.
•
35% MBE participation –
28% MBE and 7% WBE
•
Four Seasons Hotel Five-star quality finishes
•
LEED –
Legg Mason tower is certified
•
Schedule –
one year from pouring the slab on grade to substantial
completion of a 520,000 SF, 25-story office tower including Legg
Mason’s interior improvements. |
 Harbourside Project
Case Study on a Challenging
Construction Projects
44
•
The
project
is
in
very
close
proximity
to
both
the
Potomac
River
and
Rock Creek.
•
There were historic piles (George Washington era) in Rock Creek
that could not be disturbed requiring detailed protection of the
creek bank.
•
The schedule had to acknowledge the prohibition of work
adjacent to Rock Creek during shad spawning season.
•
The project included an underground parking garage that was
within 20 feet of Rock Creek requiring the full building perimeter to
be surrounded by sheet piling and a down hole pump dewater
system to prevent water infiltration into the construction site.
•
Part of the project included the Swedish Embassy. The concept
design was from the winner of a Swedish design competition. At
the request of the Swedish Government, a Swedish glass
subcontractor furnished and installed the exterior glass, including
mobilizing a Swedish work force for the installation. |
 •
$117.3 million in Total Value under Contract
•
$59.1 million in Cost in Place
•
$58.2 million in Cost to Complete
•
$200.0 million in Total Value under Negotiation
Third Party Construction Pipeline
Update
45
_____________________
As of 6/30/13 |
 Construction Insight
Eric Apperson, President of Construction |
 Financial Highlights
Mike O’Hara, Chief Financial Officer |
 2Q
13 Highlights Managing the Balance Sheet
Second half of 2013
Agenda
48 |
 Pro Forma Core Funds from
Operations
49
$ in Thousands
Three months ended
Funds from Operations (FFO)
6/30/2013
(Unaudited)
Net income
$8,404
Depreciation and amortization
4,020
Gain on acquisitions
(9,460)
Real estate joint ventures
(78)
FFO, as defined by NAREIT
2,886
Pro Forma FFO
FFO, as defined by NAREIT
2,886
Interest expense
1,060
Real estate joint ventures
285
General and administrative expenses
(200)
Pro Forma FFO
4,031
Pro Forma Core FFO
Pro Forma FFO
4,031
Loss on extinguishment of debt
1,125
Non-cash stock compensation
769
Impairment charges
533
Pro Forma Core FFO
$6,458
Pro Forma Core FFO per share
$0.20
Common Shares and Units Outstanding
32,223 |
 2Q13 Highlights
Managing the Balance Sheet
Second half of 2013
Agenda
50 |
 Debt Maturity
$ in Thousands
51
_____________________
As of 6/30/13
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000 |
 2Q13 Highlights
Managing the Balance Sheet
Second half of 2013
Agenda
52 |
 CEO Summation
Lou Haddad |
 Summation
54
Development
Construction
Asset
Management |
 Q&A |
 VIRGINIA,
HAMPTON ROADS AND VIRGINIA BEACH
Presented to Armada Hoffler Investors
Exhibit 99.2 |
 Introduction
As you know, a majority of Armada Hoffler’s
portfolio is located in Virginia
The crown jewel of its portfolio is The Town Center
of Virginia Beach
Which is located in the Hampton Roads
Metropolitan Statistical Area (MSA)
In order to understand the underlying strength of its
portfolio, I will cover the demographics of the state,
Hampton Roads area, and Virginia Beach |
 Virginia’s Location
40 percent of the nation’s
population within a day’s
drive
Integrated transportation
system of highways,
railroads, airports and
seaports
Proximity to Washington DC
and federal policy makers
and government system |
 Virginia is
Best for Business State of Virginia Accolades:
(Pollina Real Estate
(CNBC, 2011)
Number One for Pro-Business Climate,
Inc, 2011)
America’s Top State for Business,
Forbes.com: Virginia is One of the Best States for
Business
Top Performing State Government for planning and
management of money, people, information and
infrastructure |
 Why
Virginia? Low Business Costs
High Quality of the Workforce
Reasonable Cost of Living
Business Friendly
Northernmost Right-to-Work State
Impressive Economic Growth |
 Virginia:
Business First AAA Bond rating maintained since 1938, longer than
any other state
Corporate income tax of 6% not increased since 1972
Streamlined permitting process
Recruitment training programs
help businesses become
operational faster |
 Robust
State Economy Birthplace of the Internet
Leading center of software
development
One of only four states
capable of launching
communications and other
commercial satellites into space
Biomedical and telemedicine
burgeoning industries |
 Robust
State Economy More than 17,000 high-tech establishments
Ranks 3rd as recipient of federal R&D funds
In top 10 of states for knowledge-based,
globalized, IT-driven, entrepreneurial, innovation-
based
economy
(“2012
State
New
Economy
Index”
by
Information
Technology and Innovation Foundation
)
Exported $18.2 billion in merchandise in 2012 |
 Visiting
Virginia Tourism generates $21.2 billion in revenue,
supports 210,000 jobs and provides $1.36
billion in state and local taxes
200 Wineries named One of 10 Best Wine
Travel Destinations of 2012
(Wine Enthusiast)
History includes Jamestown-
the First
English Settlement, Colonial Williamsburg,
Yorktown National Battlefield, Monticello,
and Civil War sites |
 State of
Virginia Map 4 Major MSAs in
Virginia in order of size:
1.
Northern Virginia
2.
Hampton Roads
3.
Richmond Metro
4.
Roanoke Valley |
 Hampton
Roads Map MSA Population = 1.7 million
DMA Population = 2.1 million
Comprising:
Virginia Beach
Norfolk
Chesapeake
Portsmouth
Suffolk
Hampton
Newport News
Poquoson
Williamsburg
Smithfield
York County
James City County
Isle of Wight County |
 Hampton
Roads’ Location
Southeastern seaboard of Virginia
Home of world’s largest natural
deepwater harbor
33
largest MSA
in
the
country
Ten cities and five counties
Washington DC is 200 miles north
Virginia’s second largest MSA, and
the State’s first, second and third
largest cities by population
rd |
 Hampton
Roads’ Transportation
Two airports: Norfolk International Airport and
Newport News/Williamsburg have over 250 direct
flights daily
Interstate 64 encircles the MSA
Chesapeake Bay Bridge Tunnel saves 90 miles traveling
to New York/New Jersey
Three crossings between Peninsula and Southside:
Monitor Merrimack Bridge Tunnel, Hampton Roads
Bridge Tunnel and James River Bridge |
 Light
Rail Operating from Downtown Norfolk to Virginia Beach; to be Extended to Town
Center and Convention Center/Resort Oceanfront
Amtrak Service Now to Norfolk
High Speed Rail Expected
Hampton Roads’
Transportation |
 Hampton
Roads’ Economy
2
Best Performing Metro Economy in
the Nation During the Recession,
Civilian labor force almost 800,000
Large military and government
contractors brings skilled pool of
potential workers that few other
MSAs enjoy
nd
Brookings Institution |
 Hampton
Roads’ Industries
Known for its ports and maritime-
related industries: warehousing,
distribution and logistics operations
Defense-related industries
Modeling and simulation
Aerospace and aviation
Shipbuilding, nuclear powered
submarines and aircraft carriers
Management (headquarters)
operations |
 Virginia
Ports Advantages Only East Coast port with 50’
deep and unobstructed sea
lanes and channels
Already servicing larger “Post-Panamax”
vessels expected to
increase in number as Panama Canal expansion is completed
Restructuring the Port of Virginia operations to improve
efficiencies, customer services, to save $3-6 million annually
Port business up record-setting10% more in fiscal year 2013
Warehouse and distribution facility vacancies typically follow
container volume increases
Major big boxes already have distribution centers here;
warehouse vacancy is already low
Expect increase of jobs for supporting industries |
 Hampton
Roads’ Employers
Huntington Ingalls Industries –
Newport News Shipbuilding:
22,000+ employees
Sentara Healthcare: 10,000+ employees
Smithfield Packing Company and Gwaltney of Smithfield,
Ltd. Meat processing and packing
Stihl, Inc. power tools
Norfolk Southern Corporation (railway transportation)
Norfolk Naval Shipyard
Naval Medical Center of Portsmouth
Riverside Health System
Amerigroup/Wellpoint
Dollar Tree
Regional Tourism creates 12,000+ seasonal jobs |
 International Focus
Favored location for international companies,
160 firms from 27 countries
From Switzerland, Germany, Japan, UK,
Sweden, the Netherlands, Canada, France
and many others |
 Hampton
Roads’ Culture
Chrysler Museum of Art
Virginia Symphony
Virginia Arts Festival
Chrysler Hall
Virginia Opera
Virginia Stage Company
Museum of Contemporary Art
(MOCA)
The Sandler Center for the
Performing Arts
Hampton Coliseum
Norfolk Scope
Virginia Living Museum
Nauticus National Maritime Center
Colonial Williamsburg
MacArthur Memorial
Busch Gardens
nTelos Pavilion at Harbor Center
Farm Bureau Live Virginia Beach
Amphitheater
Ferguson Center |
 Hampton
Roads’ Retailers
Nordstrom
Brooks Brothers
Ann Taylor
Williams Sonoma
Urban Outfitters
Talbots
Coach
J.Crew
Pottery Barn
Whole Foods
Trader Joe’s
Macy’s
Dillard’s
Chico’s
Apple |
 The City
of Virginia Beach 39
Most populous city in the United States with
438,000 residents
Larger than Charlotte, Richmond, Austin, Salt Lake City,
Milwaukee, Nashville and Indianapolis
Encompasses 307 square miles
59 miles of waterfronts
100 miles of bikeways
2012 Tourism revenue $1.28 Billion
Tourism-related taxes over $100 Million
Government named Best-run City
in U.S.
(Wall Street Journal, January 2012)
th |
 Virginia’s Future: Offshore Wind
Virginia is one of only two sites on the Atlantic coast
selected by the US government for commercial
development of offshore wind power
23 Nautical miles out to sea lies coveted 113,000 acres
where 1
utility-scale offshore wind farm may be
operational in the next decade
Hampton Roads could emerge as main source for building
Colossus-sized wind turbines and the specially constructed
ships needed to transport them
st |
 Offshore
Natural Gas Resources VA could generate $250 -
$500 million in savings on
natural gas over 30 years
American Petroleum Institute estimates: leasing, drilling
and development activity off VA’s coast could generate
16,400 jobs by 2020
$644 million over 10 years in direct/indirect payroll to
VA
$7.84 billion of new investment in Virginia
Federal legislation could yield $3 billion in royalties to VA
over 30 years
Maritime and Engineering industry in place to capture
onshore investment |
 Virginia
Beach Accolades 2 Most Business-Friendly City in America
(CNN Money.com Report, June 2013)
One of America’s Hardest-Working Cities
(Forbes, August 2013)
One of America’s 50 Best Cities
(Bloomberg Businessweek, September 2012)
#2 Best City in U.S. for Raising a Family
(Wall Street Journal, January 2012)
6
Happiest City in the U.S. to Work
(Forbes, January 2013)
Fittest City in America
(Facebook’s Fittest Cities, 2013)
Virginia Beach’s Boardwalk Listed in Top 10
Great Public Spaces in America (American Planning
Association, October 2009)
nd
th |
 SAIC
– defense contractor
STIHL, Inc. –
manufacturer of power driven tools
GEICO –
insurance
Christian Broadcasting Network
Sentara Medical Group
Amerigroup/Wellpoint
The economy has grown at an extraordinary
average of 100 new businesses per month
Virginia Beach’s Employers |
 The Center
of Everything The Town Center of
Virginia Beach is 10
Miles from
Downtown Norfolk
7.5 Miles from the
Chesapeake Bay
10 Miles from the
Virginia Beach
Oceanfront Resort
Area |
 Virginia
Beach Map Bounded on South by North Carolina state line
On East by Atlantic Ocean
On North by Chesapeake Bay
Interstate 264 Runs East-West from Oceanfront
Resort Area to Downtown Norfolk |
 Virginia
Beach’s CBD Anchored by The Town Center of Virginia Beach, comprising 17 city
blocks |
 The Center
of Everything Crossroads of the highest volume roadways headed
"east/west" and "north/south“
The largest commercial concentration with the lowest
vacancy rates in Hampton Roads
The tallest buildings in Virginia, creating a landmark
location with largest allocation of expansion capability
Only commercial node with light-rail running through it
Largest concentration of institutions of higher education
and city offices outside the Municipal Center
Home of the Sandler Center for the Performing Arts, the
central library, and the city’s biggest post office. |
 At the
Beginning |
 Town
Center at Full Build-Out |
 Town
Center Demographics DEMOGRAPHICS
3 MILES
5 MILES
7 MILES
Total Population (2012)
127,449
287,068
444,563
# of Households
49,753
107,949
166,444
HHs w Incomes $75K+
15,169
35,363
55,432
Median Age
35.1
34.7
34.6 |
 True
Income Levels Income figures are under-reported due to the young age and number
of retirees in the region who receive retirement pay while starting second careers
around age 40 The U.S. Bureau of Economic Analysis (BEA) reports Total Personal
Income (TPI) which goes beyond just income from one primary paycheck.
TPI
includes wages, dividends,
interest, rents, pensions, and retirement plans
The adjusted Average Annual Household Income using Total Personal Income for the
City of Virginia Beach increases by 35% to $116,843 added to which the
non- monetary benefits such as VA Loans, free medical, use of commissary, etc.
add to the disposable income available to a large segment of the population
Hampton Roads spends more on retail on a per capita basis because of this
additional discretionary income |
 Conclusion
Armada Hoffler’s strategic position as the
preeminent developer and property owner
headquartered in Virginia Beach will enable it to
take advantage of
the strong economic foundations of Virginia;
the stable and growing, diversified economy in
Hampton Roads with
its young, fit and economically healthy population |
 The New
Virginia Beach |
Exhibit 99.3
ARMADA HOFFLER PROPERTIES TO HOST INVESTOR DAY
VIRGINIA BEACH, VA, September 20, 2013—Armada Hoffler Properties, Inc. (NYSE: AHH), announced that it will host an Investor Day on Tuesday, Sept. 24, 2013. The Company will webcast the presentations by the Armada Hoffler management team, beginning at 12:30 p.m. EDT.
To access the broadcast, listeners should go to the Investor Relations page of the Company’s website, www.ArmdaHoffler.com, at least 10 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. For those unable to listen to the live broadcast, an online replay will be available on the Company’s website until midnight, October 8, 2013.
About Armada Hoffler Properties, Inc.
Armada Hoffler Properties, Inc. is a full service real estate company with extensive experience developing, building, owning and managing high-quality, institutional-grade office, retail and multifamily properties in attractive markets throughout the Mid-Atlantic United States. The Company has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.
Contact:
Julie Loftus Trudell
Armada Hoffler Properties, Inc.
Vice President of Investor Relations
Email: JTrudell@ArmadaHoffler.com
Phone: (757) 366-6620
###