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): May 13, 2014
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) |
Registrant’s telephone number, including area code: (757) 366-4000
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | 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 2.02. | Results of Operations and Financial Condition. |
On May 13, 2014, Armada Hoffler Properties, Inc. (the “Company”) issued a press release announcing its financial position as of March 31, 2014, results of operations for the three months ended March 31, 2014 and other related information. Also on May 13, 2014, the Company made available on its website at www.armadahoffler.com certain supplemental information concerning the Company’s financial results and operations for the three months ended March 31, 2014. Copies of such press release and supplemental information are furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.
In accordance with General Instructions B.2 and B.6 of Form 8-K, the information included in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Exchange Act or Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
| Item 7.01. | Regulation FD Disclosure. |
The disclosure contained in Item 2.02 is incorporated herein by reference.
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit |
Description | |
| 99.1 | Press Release, dated May 13, 2014, issued by Armada Hoffler Properties, Inc., providing its financial position as of March 31, 2014 and results of operations for the three months ended March 31, 2014. | |
| 99.2 | Armada Hoffler Properties, Inc. First Quarter 2014 Supplemental Information. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ARMADA HOFFLER PROPERTIES, INC. | ||||||
| Dated: May 13, 2014 | By: | /s/ Michael P. O’Hara | ||||
| Michael P. O’Hara | ||||||
| Chief Financial Officer and Treasurer | ||||||
EXHIBIT INDEX
| Exhibit |
Description | |
| 99.1 | Press Release, dated May 13, 2014, issued by Armada Hoffler Properties, Inc., providing its financial position as of March 31, 2014 and results of operations for the three months ended March 31, 2014. | |
| 99.2 | Armada Hoffler Properties, Inc. First Quarter 2014 Supplemental Information. | |
Exhibit 99.1
|
PRESS RELEASE |
ARMADA HOFFLER PROPERTIES REPORTS FIRST QUARTER 2014 RESULTS
FFO of $6.5 Million, $0.20 Per Diluted Share
Core FFO of $7.1 Million, $0.22 Per Diluted Share
Operating Property Portfolio at 94.5% Occupancy
VIRGINIA BEACH, VA, May 13, 2014 – Armada Hoffler Properties, Inc. (NYSE: AHH), a full service real estate company, which develops and owns high-quality office, retail and multifamily properties in key Mid-Atlantic markets, today announced its results for the quarter ended March 31, 2014.
Highlights include:
| • | Funds From Operations (“FFO”) of $6.5 million, or $0.20 per diluted share. |
| • | Core FFO of $7.1 million, or $0.22 per diluted share. |
| • | Occupancy increased slightly to 94.5%, compared to 94.4% as of December 31, 2013. |
| • | Eleven properties under development including approximately 675,000 square feet of office and retail space and 686 multifamily units. |
| • | $165.9 million of new construction contract work, including the Harbor Point project in Baltimore, Maryland, and $193.3 million of backlog. |
| • | Cash dividend of $0.16 per share payable on July 10, 2014 to stockholders of record on July 1, 2014. |
| • | Anthropologie will be opening a 9,000 square foot store at the Town Center of Virginia Beach in the fourth quarter of 2014. |
| • | Today, the Company announced two new development projects, both with the Commonwealth of Virginia, for a total of 47,000 square feet. Both properties will be 100% leased for 12 years starting in early 2015. |
| • | In April, the Company announced Lightfoot Marketplace, a new shopping center in Williamsburg, Virginia that will be anchored by Harris Teeter on a 20-year lease. |
| • | In January, the Company closed on the previously announced acquisition of Liberty Apartments in Newport News, Virginia. |
May 13, 2014
Page 2 of 8
“We are pleased with our solid start to the year. The winter weather had less of an impact on our construction business than we had anticipated and our general and administrative costs were positively impacted largely due to timing,” commented Louis Haddad, Chief Executive Officer. “We are encouraged by the attractive array of opportunities in our development pipeline and are excited by the volume of leasing activity that we are experiencing not only at Town Center but broadly across our portfolio.”
Financial Results
Net income was $2.5 million, or $0.08 per diluted share, for the three months ended March 31, 2014. FFO was $6.5 million, or $0.20 per diluted share, and Core FFO was $7.1 million, or $0.22 per diluted share, for the three months ended March 31, 2014. The Company believes that Core FFO is a useful supplemental performance measure as it excludes certain items including, but not limited to, losses on debt extinguishments, non-cash compensation expense and effects from non-stabilized development projects. A reconciliation of GAAP net income to FFO and Core FFO is presented on page eight of this release.
Operating Performance
The Company executed new and renewal office leases totaling 31,000 square feet, as well as new and renewal retail leases totaling 27,000 square feet. At the end of the first quarter, the Company’s office, retail and multifamily operating property portfolios were 95.4%, 93.4% and 94.2% occupied, respectively.
Balance Sheet and Financing Activity
At the end of the first quarter, the Company had total outstanding debt of approximately $317.3 million, including $80.0 million outstanding on its revolving credit facility. Approximately 46% of the Company’s debt had fixed interest rates at March 31, 2014 but after considering LIBOR interest rate caps with strike prices at or below 150 basis points, approximately 83% of the Company’s debt was fixed or hedged at March 31, 2014.
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May 13, 2014
Page 3 of 8
Outlook
The Company is reiterating its full–year 2014 outlook parameters.
| • | For the full-year 2014, Core FFO is expected to be in line with full-year 2013 FFO. |
| • | During 2014, the Company expects to deliver five development projects. These projects include: 4525 Main Street; Greentree Shopping Center; Encore Apartments; Whetstone Apartments; and Liberty Apartments. |
| • | Non-stabilized projects in 2014 are expected to negatively impact FFO by approximately $1.5 million, which the Company will exclude from Core FFO. |
| • | General and administrative expenses are expected to be approximately $7.8 million. |
| • | Construction company annual segment profits are expected to be approximately $4.0 million. |
| Current Parameters As of May 13, 2014 |
Previous Parameters As of February 20, 2014 | |||
| Total Core FFO (excluding the impact from non-stabilized projects) |
In-line with full-year 2013 FFO | In-line with full-year 2013 FFO | ||
| Non-stabilized projects - negative impact to FFO (excluded from Core FFO) |
Approximately $ 1.5 million | Approximately $ 1.5 million | ||
| General & administrative expense |
Approximately $ 7.8 million | Approximately $ 7.8 million | ||
| Third party construction company annual segment gross profit |
Approximately $ 4.0 million | Approximately $ 4.0 million | ||
Supplemental Financial Information
Further details regarding operating results, properties and leasing statistics can be found in the Company’s supplemental financial package available at www.ArmadaHoffler.com under the Investor Relations section.
Webcast and Conference Call
The Company will host a webcast and conference call on Tuesday, May 13, 2014 at 8:30 a.m. Eastern Time to review first quarter ended March 31, 2014 results and discuss recent events. The live webcast will be available through the Investor Relations page of the Company’s website, www.ArmadaHoffler.com, or through www.viavid.com. To participate in the call, please dial 877-407-3982 (domestic) or 201-493-6780 (international). A replay of the conference call will be available through Friday, June 13, 2014, by dialing 877-870-5176 (domestic) or 858-384-5517 (international) and entering the pass code 13580585.
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May 13, 2014
Page 4 of 8
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.
Forward-Looking Statements
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These forward-looking statements may include comments relating to the current and future performance of the Company’s operating property portfolio, the Company’s identified and next generation development pipelines, the Company’s construction and development business, including backlog, and financing activities as well as comments on the Company’s outlook. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, and other documents filed by the Company with the Securities and Exchange Commission.
Non-GAAP Financial Measures
The Company calculates FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as net income (loss) (calculated in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures.
FFO is a supplemental non-GAAP financial measure. The Company uses FFO as a supplemental performance measure because it believes that FFO is beneficial to investors as a starting point in measuring the Company’s operational performance. Specifically, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, which do not relate to or are not indicative of operating performance, FFO provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare the Company’s operating performance with that of other REITs.
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May 13, 2014
Page 5 of 8
However, because FFO excludes depreciation and amortization and captures neither the changes in the value of the Company’s properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of the Company’s properties, all of which have real economic effects and could materially impact the Company’s results from operations, the utility of FFO as a measure of the Company’s performance is limited. In addition, other equity REITs may not calculate FFO in accordance with the NAREIT definition as the Company does, and, accordingly, the Company’s FFO may not be comparable to such other REITs’ FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of the Company’s performance.
Management also believes that the computation of FFO in accordance with NAREIT’s definition includes certain items that are not indicative of the results provided by the Company’s operating property portfolio and affect the comparability of the Company’s period-over-period performance. Accordingly, the Company further adjusts FFO to arrive at Core FFO, which eliminates certain of these items, including, but not limited to, gains and losses on the extinguishment of debt and non-cash stock compensation expense.
For reference, as an aid in understanding the Company’s computation of FFO and Core FFO, a reconciliation of net income calculated in accordance with GAAP to FFO and Core FFO has been included on page eight of this release.
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May 13, 2014
Page 6 of 8
ARMADA HOFFLER PROPERTIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(dollars in thousands)
| March 31, | December 31, | |||||||
| 2014 | 2013 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Real estate investments: |
||||||||
| Income producing property |
$ | 434,281 | $ | 406,239 | ||||
| Held for development |
— | — | ||||||
| Construction in progress |
78,536 | 56,737 | ||||||
| Accumulated depreciation |
(108,706 | ) | (105,228 | ) | ||||
|
|
|
|
|
|||||
| Net real estate investments |
404,111 | 357,748 | ||||||
| Cash and cash equivalents |
13,444 | 18,882 | ||||||
| Restricted cash |
2,754 | 2,160 | ||||||
| Accounts receivable, net |
18,884 | 18,272 | ||||||
| Construction receivables, including retentions |
12,736 | 12,633 | ||||||
| Construction costs and estimated earnings in excess of billings |
1,184 | 1,178 | ||||||
| Other assets |
25,799 | 24,409 | ||||||
|
|
|
|
|
|||||
| Total Assets |
$ | 478,912 | $ | 435,282 | ||||
|
|
|
|
|
|||||
| Liabilities and Equity | ||||||||
| Indebtedness |
$ | 317,271 | $ | 277,745 | ||||
| Accounts payable and accrued liabilities |
7,158 | 6,463 | ||||||
| Construction payables, including retentions |
27,047 | 28,139 | ||||||
| Billings in excess of construction costs and estimated earnings |
1,134 | 1,541 | ||||||
| Other liabilities |
16,264 | 15,873 | ||||||
|
|
|
|
|
|||||
| Total Liabilities |
$ | 368,874 | $ | 329,761 | ||||
|
|
|
|
|
|||||
| Total Equity |
110,038 | 105,521 | ||||||
|
|
|
|
|
|||||
| Total Liabilities and Equity |
$ | 478,912 | $ | 435,282 | ||||
|
|
|
|
|
|||||
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May 13, 2014
Page 7 of 8
ARMADA HOFFLER PROPERTIES, INC.
CONDENSED CONSOLIDATED INCOME STATEMENT
(dollars in thousands, except per share)
| Three Months Ended March 31, |
||||||||
| 2014 | 2013 | |||||||
| (Unaudited) | ||||||||
| Revenues |
||||||||
| Rental revenues |
$ | 15,193 | $ | 13,398 | ||||
| General contracting and real estate services |
19,234 | 17,956 | ||||||
|
|
|
|
|
|||||
| Total revenues |
34,427 | 31,354 | ||||||
|
|
|
|
|
|||||
| Expenses |
||||||||
| Rental expenses |
3,976 | 3,229 | ||||||
| Real estate taxes |
1,343 | 1,212 | ||||||
| General contracting and real estate services |
17,985 | 17,458 | ||||||
| Depreciation and amortization |
3,969 | 3,159 | ||||||
| General and administrative |
2,046 | 717 | ||||||
|
|
|
|
|
|||||
| Total expenses |
29,319 | 25,775 | ||||||
|
|
|
|
|
|||||
| Operating income |
5,108 | 5,579 | ||||||
| Interest expense |
(2,565 | ) | (3,915 | ) | ||||
| Other income |
112 | 267 | ||||||
|
|
|
|
|
|||||
| Income before taxes |
2,655 | 1,931 | ||||||
| Income tax provision |
(149 | ) | — | |||||
|
|
|
|
|
|||||
| Net income |
$ | 2,506 | $ | 1,931 | ||||
|
|
|
|
|
|||||
| Per Share: |
||||||||
| Basic and Diluted |
$ | 0.08 | ||||||
| Weighted Average Common Shares and Units: |
||||||||
| Basic and Diluted |
32,825 | |||||||
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May 13, 2014
Page 8 of 8
ARMADA HOFFLER PROPERTIES, INC.
RECONCILIATION OF NET INCOME TO CORE FUNDS FROM OPERATIONS
(dollars in thousands, except per share)
| Three Months Ended March 31, 2014 |
||||
| (Unaudited) | ||||
| Net income |
$ | 2,506 | ||
| Depreciation and amortization |
3,969 | |||
|
|
|
|||
| Funds From Operations |
$ | 6,475 | ||
| Non-cash stock compensation |
329 | |||
| Non-stabilized development projects |
261 | |||
| Loss on extinguishment of debt |
— | |||
| Loan modification costs |
— | |||
| Impairment charges |
— | |||
|
|
|
|||
| Core Funds From Operations |
$ | 7,065 | ||
|
|
|
|||
| Funds From Operations per diluted share |
$ | 0.20 | ||
|
|
|
|||
| Core Funds From Operations per diluted share |
$ | 0.22 | ||
|
|
|
|||
| Common Shares and Units Outstanding |
32,825 | |||
Contact:
Julie Loftus Trudell
Armada Hoffler Properties, Inc.
Vice President of Investor Relations
Email: JTrudell@ArmadaHoffler.com
Phone: (757) 366-6692
###
Exhibit 99.2
Armada Hoffler Properties, Inc.
First Quarter 2014 Supplemental Information
ARMADA HOFFLER
PROPERTIES
Table of Contents
Forward Looking Statements 3
Corporate Profile 4
First Quarter Results and Financial Summary 5
Highlights 6
2014 Outlook 7
Summary Information 8
Summary Balance Sheet 9
Summary Income Statement 10
Core FFO & AFFO 11
Summary of Outstanding Debt 12
Debt to Core EBITDA 13
Debt Information 14
Portfolio Summary & Business Segment Overview 15
Stabilized Portfolio Summary 16
Stabilized Portfolio Summary Footnotes 17
Development Pipeline 18
Construction Business Summary 19
Operating Results & Property-Type Segment Analysis 20
Same Store NOI by Segment 21
Top 10 Tenants by Annual Base Rent 22
Office Lease Summary 23
Retail Lease Summary 25
Historical Occupancy 27
Appendix - Understanding AHH 29
Corporate Overview 30
Differentiation Provides Value Creation 31
Business Segmentation Overview 32
Components of NAV 33
Stabilized Portfolio 34
Identified & Next Generation Pipeline 35
3rd Party Construction 36
Net Asset Value Component Data 37
Appendix - Definitions & Reconciliations 38
Definitions 39
Reconciliations 43
ARMADA HOFFLER
PROPERTIES
2
Forward Looking Statement
This Supplemental Information should be read in conjunction with our Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, and the unaudited consolidated financial statements appearing in our press release dated May 13, 2014, which has been furnished as Exhibit 99.1 to our Form 8-K filed on May 13, 2014. The Company makes statements in this Supplemental Information that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). In particular, statements pertaining to our capital resources, portfolio performance and results of operations contain forward-looking statements. Likewise, all of our statements regarding anticipated growth in our funds from operations, core funds from operations, adjusted funds from operations, funds available for distribution and net operating income are forward-looking statements. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions.
Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and the Company may not be able to realize them. The Company does not guarantee that the transactions and events described will happen as described (or that they will happen at all). For further discussion of risk factors and other events that could impact our future results, please refer to the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K filed with the Securities and Exchange
Commission (the “SEC), and the documents subsequently filed by us from time to time with the SEC.
ARMADA HOFFLER
PROPERTIES
3
Corporate Profile
Corporate Information
Armada Hoffler Properties, Inc. (NYSE: AHH) is a full service real estate investment trust company that develops, builds, owns and manages institutional grade office, retail and multifamily properties in the Mid-Atlantic U.S. The Company also provides general construction and development services to third-party clients throughout the Mid-Atlantic and Southeastern regions of the U.S. Armada Hoffler Properties was founded in 1979 and is headquartered in Virginia Beach, VA.
Management & Board
Board of Directors
Daniel A. Hoffler Executive Chairman of the Board
A. Russell Kirk Vice Chairman of the Board
Louis S. Haddad Director
John W. Snow Lead Independent Director
George F. Allen Independent Director
James A. Carroll Independent Director
James C. Cherry Independent Director
Joseph W. Prueher Independent Director
Janney, Montgomery, & Scott LLC Raymond James & Associates
Michael Gorman Richard Mulligan
(215) 665-6224 (727) 567-2660
mgorman@janney.com rj.milligan@raymondjames.com
Corporate Officers
Louis S. Haddad President and Chief Executive Officer
Anthony P. Nero President of Development
Shelly R. Hampton President of Asset Management
Eric E. Apperson President of Construction
Michael P. O’Hara Chief Financial Officer and Treasurer
Eric L. Smith Vice President of Operations and Secretary
Analyst Coverage
Robert W. Baird & Co. Stifel, Nicolaus & Company, Inc. Wunderlich Securities
David Rodgers John Guinee Craig Kucera
(216) 737-7341 (443) 224-1307 (540) 277-3366
drodgers@rwbaird.com jwguinee@stifel.com ckucera@wundernet.com
Investor Relations Contact
Julie Loftus Trudell
Vice President of Investor Relations
(757) 366-6692
Jtrudell@armadahoffler.com
ARMADA HOFFLER
PROPERTIES
4
First Quarter Results and Financial Summary
ARMADA HOFFLER
PROPERTIES
Highlights
Financial
Funds From Operations (“FFO”) of $6.5 million, or $0.20 per diluted share.
Core FFO of $7.1 million, or $0.22 per diluted share.
Occupancy increased slightly to 94.5%, compared to 94.4% as of December 31, 2013.
Cash dividend of $0.16 per share payable on July 10, 2014 to stockholders of record on July 1, 2014.
Core debt to annualized Core EBITDA - 6.9x
Weighted average interest rate of 3.6% and average loan term to maturity of 9.7 years
Approximately 46% of debt was fixed as of March 31st but taking into account LIBOR interest rates caps approximately 83% of debt was fixed or hedged.
Operational
Eleven properties under development including 675,000 square feet of office and retail space and 686 multifamily units.
$165.9 million of new construction contract work, including the Harbor Point project in Baltimore, Maryland, and $193.3 million of backlog.
Anthropologie will be opening a 9,000 square foot store at the Town Center of Virginia Beach in the fourth quarter of 2014.
Today, the Company announced two new development projects, both with the Commonwealth of Virginia, for a total of 47,000 square feet. Both properties will be 100% leased for 12 years starting in early 2015.
In April, the Company announced Lightfoot
Marketplace, a new shopping center in Williamsburg, Virginia that will be anchored by Harris Teeter on a 20-year lease.
ARMADA HOFFLER
PROPERTIES
6
2014 Outlook
Total Core FFO (excluding the impact from non-stabilized projects)
Non-stabilized projects - negative impact to FFO (excluded from Core FFO)
General & administrative expense
Third party construction company annual segment gross profit
Current Parameters As of May 13, 2014
In-line with full-year 2013 FFO
Approximately $1.5 million
Approximately $7.8 million
Approximately $4.0 million
Previous Parameters As of February 20, 2014
In-line with full-year 2013 FFO
Approximately $1.5 million
Approximately $7.8 million
Approximately $4.0 million
ARMADA HOFFLER
PROPERTIES
7
Summary Information
$ in thousands, except per share
Market Capitalization
3/31/2014
% of Total Equity
Total Market Capitalization
Market Data
Total Common Shares Outstanding 58% 19,254,365
Operating Partnership (“OP”) Units Outstanding 42% 13,785,017
Common shares and OP units outstanding 100% 33,039,382
Market price per common share $10.04
Equity market capitalization $331,715
Total debt 317,271
Total market capitalization $648,986
Less: cash (16,198)
Total enterprise value $632,788
Stable Portfolio Metrics
3/31/2014
Rentable square feet or number of units:
Office 950,370
Retail 1,092,311
Multifamily (1) 626
Occupancy:
Office (2) 95.4%
Retail (2) 93.4%
Multifamily(1)(3) 94.2%
Weighted Average (4) 94.5%
Key Financials
Three months ended
Financial Information: 3/31/2014
Rental revenues $15,193
General contracting and real estate services revenues 19,234
Rental properties Net Operating Income (NOI) 9,874
General contracting and real estate services gross profit 1,249
Net income 2,506
Funds From Operations (FFO) 6,475
FFO per diluted share $0.20
Core FFO 7,065
Core FFO per diluted share $0.22
Weighted Average Shares/Units Outstanding 32,824,399
Debt Metrics
Three months ended
3/31/2014
Key Metrics
Core debt/enterprise value 42.5%
Fixed charge coverage ratio
Core EBITDA $9,686
Interest 2,565
Principal 714
Total Fixed Charges 3,279
Fixed charge coverage ratio 2.95x
Core Debt/Annualized Core EBITDA 6.9x
(1) Excludes Liberty Apartments
(2) Office and retail occupancy based on leased square feet as a % of respective total
(3) Multifamily occupancy based on occupied units as a % of respective total
(4) Total occupancy weighted by annualized base rent
ARMADA HOFFLER
PROPERTIES
8
Summary Balance Sheet
$ in thousands
As of
3/31/2014
12/31/2013
Assets (Unaudited)
Real estate investments:
Income producing property $434,281 $406,239
Construction in progress 78,536 56,737
512,817 462,976
Accumulated depreciation (108,706) (105,228)
Net real estate investments 404,111 357,748
Cash and cash equivalents 13,444 18,882
Restricted cash 2,754 2,160
Accounts receivable, net 18,884 18,272
Construction receivables, including retentions 12,736 12,633
Costs and estimated earnings in excess of billings 1,184 1,178
Other assets 25,799 24,409
Total Assets $478,912 $435,282
Liabilities and Equity
Indebtedness $317,271 $277,745
Accounts payable and accrued liabilities 7,158 6,463
Construction payables, including retentions 27,047 28,139
Billings in excess of costs and estimated earnings 1,134 1,541
Other liabilities 16,264 15,873
Total Liabilities 368,874 329,761
Total Equity 110,038 105,521
Total Liabilities and Equity $478,912 $435,282
ARMADA HOFFLER
PROPERTIES
9
Summary Income Statement
$ in thousands
Three months ended
3/31/2014 3/31/2013
Revenues (Unaudited)
Rental revenues $15,193 $13,398
General contracting and real estate services 19,234 17,956
Total Revenues 34,427 31,354
Expenses
Rental expenses 3,976 3,229
Real estate taxes 1,343 1,212
General contracting and real estate services 17,985 17,458
Depreciation and amortization 3,969 3,159
General and administrative 2,046 717
Total Expenses 29,319 25,775
Operating Income 5,108 5,579
Interest expense (2,565) (3,915)
Other income 112 267
Income before taxes 2,655 1,931
Income tax provision (149) -
Net income $2,506 $1,931
ARMADA HOFFLER
PROPERTIES
10
Core FFO & AFFO
$ in thousands, except per share
Three months ended
3/31/2014
(Unaudited)
Net income $2,506
Depreciation and amortization 3,969
FFO 6,475
Core FFO
Adjustments
Loss on extinguishment of debt -
Non-cash stock compensation 329
Impairment charges -
Loan modifications -
Non-Stabilized development pipeline adjustments 261
Core FFO 7,065
Core FFO per weighted average share $0.22
AFFO
Adjustments
Non-Stabilized development pipeline adjustments (261)
Tenant improvements, leasing commissions (1) (209)
Leasing incentives -
Property related capital expenditures (219)
Non cash interest expense 133
GAAP Adjustments
Net effect of straight-line rents (389)
Amortization of lease incentives and above (below) market rents 160
Derivative (income) losses (93)
AFFO $6,187
AFFO per weighted average share $0.19
(1) Excludes tenant improvements and leasing commissions on first generation rental space.
ARMADA HOFFLER
PROPERTIES
11
Summary of Outstanding Debt
$ in thousands
Debt
Amount Outstanding
Interest Rate (1)
Effective Rate as of March 31, 2014
Maturity Date
Balance at Maturity
Virginia Beach Town Center
249 Central Park Retail $15,765 5.99% September 8, 2016 $15,084
South Retail 6,955 5.99% September 8, 2016 6,655
Studio 56 Retail 2,672 3.75% May 7, 2015 2,592
Commerce Street Retail 5,597 LIBOR +2.25% 2.41% October 31, 2018 5,264
Fountain Plaza Retail 7,883 5.99% September 8, 2016 7,542
Dick’s at Town Center 8,292 LIBOR+2.75% 2.91% October 31, 2017 7,889
The Cosmopolitan 47,577 3.75% July 1, 2051 -
Diversified Portfolio
Oyster Point 6,418 5.41% December 1, 2015 6,089
Broad Creek Shopping Center
Note 1 4,490 LIBOR +2.25% 2.41% October 31, 2018 4,223
Note 2 8,244 LIBOR +2.25% 2.41% October 31, 2018 7,752
Note 3 3,451 LIBOR +2.25% 2.41% October 31, 2018 3,246
Hanbury Village
Note 1 21,388 6.67% October 11, 2017 20,499
Note 2 4,142 LIBOR +2.25% 2.41% October 31, 2018 3,777
Harrisonburg Regal 3,797 6.06% June 8, 2017 3,165
North Point Center
Note 1 10,277 6.45% February 5, 2019 9,333
Note 2 2,817 7.25% September 15, 2025 1,344
Note 4 1,024 5.59% December 1, 2014 1,007
Note 5 700 LIBOR+2.00% 3.57% (2) February 1, 2017 641
Tyre Neck Harris Teeter 2,471 LIBOR +2.25% 2.41% October 31, 2018 2,235
Smith’s Landing 24,714 LIBOR+2.15% 2.31% January 31, 2017 23,793
188,674 132,130
Credit Facility 80,000 LIBOR + 1.60% - 2.20% 1.90% May 13, 2016 80,000
Total including Credit Facility $268,674 $212,130
Development Pipeline
4525 Main Street 17,483 LIBOR+1.95% 2.11% January 30, 2017 17,483
Encore Apartments 9,279 LIBOR+1.95% 2.11% January 30, 2017 9,279
Whetstone Apartments 1,425 LIBOR+1.90% 2.06% October 8, 2016 1,425
Sandbridge Commons 3,437 LIBOR+1.85% 2.01% January 17, 2018 3,437
Liberty Apartments 18,456 (3) 5.66% November 1, 2043 -
Oceaneering - LIBOR+1.75% 1.91% February 28, 2018 -
Total Notes Payable - Development Pipeline 50,080 31,624
Unamortized fair value adjustments (1,483)
Total Notes Payable $317,271 $243,754
Weighted Average Fixed Interest Rate 5.3%
Weighted Average Variable Interest Rate 2.1%
Total Weighted Average Interest Rate 3.6%
Variable Interest Rate as a % of Total (excluding interest rate caps) 54.1%
Weighted Average Maturity (years) 9.7
1Q 2014
Capitalized Interest $616
(1) LIBOR rate is determined by individual lenders.
(2) Subject to an interest rate swap lock.
(3) Principal balance excluding any fair value adjustment recognized upon acquisition.
ARMADA HOFFLER
PROPERTIES
12
Core Debt to Core EBITDA
$ in thousands
Three months ended 3/31/2014
(Unaudited)
Net Income $2,506
Excluding:
Interest Expense 2,565
Income Tax 149
Depreciation and amortization 3,969
EBITDA 9,189
Additional Adjustments:
Non-recurring or extraordinary (gains) losses -
Early extinguishment of debt -
Derivative (income) losses (93)
Non-cash stock compensation 329
Development Pipeline 261
Total Other Adjustments 497
Core EBITDA 9,686
Annualized Core EBITDA $38,744
3/31/2014
(Unaudited)
Total Debt $317,271
Excluding:
Development Pipeline Unstabilized Debt (48,597)
Core Debt $268,674
Core Debt/Annualized Core EBITDA 6.9x
ARMADA HOFFLER
PROPERTIES
13
Debt Information
$ in thousands
Debt Maturity as of 3/31/2014
$120,000
$100,000
$80,000
($ in thousands)
$60,000
$40,000
$20,000
$0
2014 2015 2016 2017 2018 and thereafter
Interest Rate Cap Agreements At or Below 1.50%
Effective Date
Maturity Date
Strike Rate
Notional Amount
May 31, 2012 May 29, 2015 1.09% $9,068
September 1, 2013 March 1, 2016 1.50% 40,000
October 4, 2013 April 1, 2016 1.50% 18,500
March 14, 2014 March 1, 2017 1.25% 50,000
Total Interest Rate Caps at or Below 11.50% $117,568
Fixed Debt Outstanding 145,729
Total Fixed Interest Rate Debt (including caps) $263,297
Fixed Interest Rate Debt as a % of Total 83%
ARMADA HOFFLER
PROPERTIES
14
Portfolio Summary & Business
Segmentation Overview
ARMADA HOFFLER
PROPERTIES
Stabilized Portfolio Summary
As of 3/31/2014
Property
Location
Year Built
Net Rentable Square Feet(1)
% Leased(2)
Annualized Base Rent(3)
Annualized Base Rent per Leased Sq. Ft.(3)
Average Net Effective Annual Base Rent per Leased Sq. Ft.(4)
Office Properties
Armada Hoffler Tower(5) Virginia Beach, VA 2002 324,348 98.2% $8,605,343 $27.01 $26.51
One Columbus Virginia Beach, VA 1984 129,424 97.4% 2,938,383 23.30 23.62
Two Columbus Virginia Beach, VA 2009 109,215 90.7% 2,509,410 25.33 27.01
Virginia Natural Gas (6) Virginia Beach, VA 2010 31,000 100.0% 568,230 18.33 20.17
Richmond Tower Richmond, VA 2010 206,969 98.0% 7,376,131 36.37 41.88
Oyster Point Newport News, VA 1989 100,214 79.8% 1,742,296 21.78 21.27
Sentara Williamsburg(6) Williamsburg, VA 2008 49,200 100.0% 1,006,140 20.45 20.50
Subtotal / Weighted Average Office Portfolio(7) 950,370 95.4% $24,745,933 $27.29 $28.60
Retail Properties Not Subject to Ground Lease
Bermuda Crossroads Chester, VA 2001 111,566 94.0% 1,409,089 13.44 13.63
Broad Creek Shopping Center Norfolk, VA 1997-2001 227,691 96.8% 3,074,931 13.95 12.75
Courthouse 7-Eleven Virginia Beach, VA 2011 3,177 100.0% 125,000 39.35 43.81
Gainsborough Square Chesapeake, VA 1999 88,862 96.5% 1,353,202 15.77 15.97
Hanbury Village Chesapeake, VA 2006-2009 61,049 86.4% 1,296,542 24.59 24.41
North Point Center Durham, NC 1998-2009 215,690 92.1% 2,348,731 11.82 11.63
Parkway Marketplace Virginia Beach, VA 1998 37,804 95.2% 702,488 19.51 20.61
Harrisonburg Regal Harrisonburg, VA 1999 49,000 100.0% 683,550 13.95 13.95
Dick’s at Town Center Virginia Beach, VA 2002 100,804 83.3% 798,000 9.50 7.79
249 Central Park Retail Virginia Beach, VA(8) 2004 91,171 96.2% 2,447,620 27.92 27.58
Studio 56 Retail Virginia Beach, VA 2007 11,600 84.8% 371,200 37.75 19.03
Commerce Street Retail(9) Virginia Beach, VA 2008 19,173 100.0% 797,090 41.57 36.92
Fountain Plaza Retail Virginia Beach, VA 2004 35,961 100.0% 996,181 27.70 39.48
South Retail(24) Virginia Beach, VA 2002 38,763 83.6% 621,240 19.17 25.18
Subtotal / Weighted Avg Retail Portfolio not Subject to Ground Leases(10) 1,092,311 93.4% $17,024,862 $16.70 $16.65
Retail Properties Subject to Ground Lease
Bermuda Crossroads(11) Chester, VA 2001 (13) 100.0% 163,350
Broad Creek Shopping Center(12) Norfolk, VA 1997-2001 (14) 100.0% 579,188
Hanbury Village(11) Chesapeake, VA 2006-2009 (15) 100.0% 1,067,598
North Point Center(11) Durham, NC 1998-2009 (16) 100.0% 1,055,125
Tyre Neck Harris Teeter(12) Portsmouth, VA 2011 (17) 100.0% 508,134
Subtotal / Weighted Avg Retail Portfolio Subject to Ground Leases 100.0% $3,373,396
Total / Weighted Avg Retail Portfolio 1,092,311(18) 93.4% $20,398,257 $16.70 $16.65
Total / Weighted Average Retail and Office Portfolio 2,042,681 94.3% $45,144,190 $21.68 $22.27
Property
Location
Year Built
Units(19)
% Leased(2)
Annualized Base Rent(20)
Average Monthly Base Rent per Leased Unit(21)
Multifamily
Smith’s Landing(22) Blacksburg, VA 2009 284 99.6% $3,430,260 $1,010.09
The Cosmopolitan Virginia Beach, VA 2006 342 89.8% 6,735,707 1,574.26
Total / Weighted Avg Multifamily Portfolio 626 94.2% $10,165,967 $1,303.65
ARMADA HOFFLER
PROPERTIES
16
Stabilized Portfolio Summary Footnotes
1)The net rentable square footage for each of our office properties is the sum of (a) the square footages of existing leases, plus (b) for available space, management’s estimate of net rentable square footage based, in part, on past leases. The net rentable square footage included in office leases is generally determined consistently with the Building Owners and Managers Association, or BOMA, 1996 measurement guidelines. The net rentable square footage for each of our retail properties is the sum of (a) the square footages of existing leases, plus (b) for available space, the field verified square footage.
2)Percentage leased for each of our office and retail properties is calculated as (a) square footage under executed leases as of March 31, 2014, divided by (b) net rentable square feet, expressed as a percentage. Percentage leased for our multifamily properties is calculated as (a) total units occupied as of March 31, 2014, divided by (b) total units available, expressed as a percentage.
3)For the properties in our office and retail portfolios, annualized base rent is calculated by multiplying (a) base rental payments for executed leases as of March 31, 2014 (defined as cash base rents (before abatements) excluding tenant reimbursements for expenses paid by the landlord), by (b) 12. Annualized base rent per leased square foot is calculated by dividing (a) annualized base rent, by (b) square footage under commenced leases as of March 31, 2014. In the case of triple net or modified gross leases, annualized base rent does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses.
4)Average net effective annual base rent per leased square foot represents (a) the contractual base rent for leases in place as of March 31, 2014, calculated on a straight-line basis to amortize free rent periods and abatements, but without regard to tenant improvement allowances and leasing commissions, divided by (b) square footage under commenced leases as of March 31, 2014.
5)As of March 31, 2014, the Company occupied 16,151 square feet at this property at an annualized base rent of $446,172, or $29.40 per leased square foot, which amounts are reflected in the % leased, annualized base rent and annualized base rent per square foot columns in the table above. The rent paid by us is eliminated from our revenues in consolidation. In addition, effective March 1, 2013, the Company sublease approximately 5,000 square feet of space from a tenant at this property.
6)This property is subject to a triple net lease pursuant to which the tenant pays operating expenses, insurance and real estate taxes.
7)Includes square footage and annualized base rent pursuant to leases for space occupied by us.
8)As of March 31, 2014, the Company occupied 8,995 square feet at this property at an annualized base rent of $278,965, or $31.01 per leased square foot, which amounts are reflected in the % leased, annualized base rent and annualized base rent per square foot columns in the table above. The rent paid by us is eliminated from our revenues in consolidation.
9)Includes $31,200 of annualized base rent pursuant to a rooftop lease.
10)Reflects square footage and annualized base rent pursuant to leases for space occupied by AHH.
11)For this ground lease, the Company own the land and the tenant owns the improvements thereto. The Company will succeed to the ownership of the improvements to the land upon the termination of the ground lease.
12)The Company lease the land underlying this property from the owner of the land pursuant to a ground lease. The Company re-lease the land to our tenant under a separate ground lease pursuant to which our tenant owns the improvements on the land.
13)Tenants collectively lease approximately 139,356 square feet of land from us pursuant to ground leases.
14)Tenants collectively lease approximately 299,170 square feet of land from us pursuant to ground leases.
15)Tenants collectively lease approximately 105,988 square feet of land from us pursuant to ground leases.
16)Tenants collectively lease approximately 1,443,985 square feet of land from us pursuant to ground leases.
17)Tenant leases approximately 200,073 square feet of land from us pursuant to a ground lease.
18)The total square footage of our retail portfolio excludes the square footage of land subject to ground leases.
19)Units represent the total number of apartment units available for rent at March 31, 2014.
20)For the properties in our multifamily portfolio, annualized base rent is calculated by multiplying (a) base rental payments for the month ended March 31, 2014 by (b) 12.
21)Average monthly base rent per leased unit represents the average monthly rent for all leased units for the month ended March 31, 2014.
22)The Company lease the land underlying this property from the owner of the land pursuant to a ground lease.
23)The annualized base rent for The Cosmopolitan includes $936,143 of annualized rent from 15 retail leases at the property.
24)As of March 31, 2014, The Company occupied 2,908 square feet at this property at an annualized base rent of $12,000, or $4.13 per leased square foot, which amounts are reflected in the % leased, annualized base rent and annualized base rent per square foot columns in the table above. The rent paid by us and is eliminated from our revenues in consolidation.
ARMADA HOFFLER
PROPERTIES
17
Development Pipeline
$ in thousands
Identified Development Pipeline Schedule
Office/Retail Location Estimated Square Footage(1) Estimated Cost(1) Cost Incurred through 3/31/2014 Start Anchor Tenant Occupancy Stabilized Operation AHH Ownership % (1) Property Type %leased Anchor Tenants
4525 Main Street(2) Virginia Beach, VA 234,000 (3) $50,000 $32,000 1Q13 3Q14 1Q16 100% Office 46% Clark Nexsen, Development Authority of Virginia Beach(3) , Anthropology (8)
Sandbridge Commons Virginia Beach, VA 70,000 13,000 6,000 4Q13 1Q15 2Q16 100% Retail 66% Harris Teeter
Brooks Crossing Newport News, VA 36,000 8,000 1,200 3Q14 3Q15 3Q15 65% Office 0% Huntington Ingalls(4)
Greentree Shopping Center(5) Chesapeake, VA 18,000 6,000 3,000 4Q13 4Q14 3Q16 100% Retail 40% Wawa
358,000 77,000 42,200
Schedule
Multifamily Location Estimated Apartment Units(1) Estimated Cost(1) Cost Incurred through 3/31/2014 Start Initial Occupancy Complete(1) Stabilized Operation AHH Ownership %
Encore Apartments(2) Virginia Beach, VA 286 $34,000 $17,000 1Q13 3Q14 4Q15 1Q16 100%
Whetstone Apartments Durham, NC 203 28,000 13,000 2Q13 3Q14 3Q15 1Q16 100%
Liberty Apartments(6) Newport News, VA 197 30,700 30,700 - - 1Q14 3Q15 100%
686 92,700 60,700
Next Generation Pipeline
Schedule
Office/Retail
Location
Estimated Square Footage(1)
Estimated Cost(1)
Cost Incurred through 3/31/2014
Start
Anchor Tenant Occupancy
Stabilized Operation
AHH Ownership % (1)
Property Type
%leased
Anchor Tenants
Oceaneering Chesapeake, VA 155,000 $26,000 $6,000 4Q13 1Q15 1Q15 100% Office 100% Oceaneering
Commonwealth of Virginia - Chesapeake Chesapeake, VA 36,000 7,000 200 2Q14 1Q15 1Q15 100% Office 100% Commonwealth of Virginia
Commonwealth of Virginia - Virginia Beach Virginia Beach, VA 11,000 3,000 - 2Q14 1Q15 1Q15 100% Office 100% Commonwealth of Virginia
Lightfoot Marketplace Williamsburg, VA 88,000 24,000 500 3Q14 1Q16 2Q17 70%(7) Retail 60% Harris Teeter
290,000 60,000 6,700
Total $229,700 $109,600
(1) Represents estimates that may change as the development process proceeds
(2) This property will be located within the Virginia Beach Town Center
(3) Approximately 83,000 square feet is leased to Clark Nexsen, an architectural firm and approximately 23,000 square feet is leased to the Development Authority of Virginia Beach
(4) The principal tenant lease has not been signed as of the date of this supplemental information
(5) AHH has completed the sale of a pad ready site to Wal-Mart adjacent to Greentree Shopping Center
(6) Reflects purchase price of the acquisition, which occurred in 1Q14
(7) AHH earns a preferred return on equity prior to any distributions to JV partners
(8) Executed lease with retail anchor
ARMADA HOFFLER
PROPERTIES
18
Construction Business Summary
$ in thousands
Location
Total Contract Value
Work in Place as of 3/31/2014
Backlog
Estimated Date of Completion
Projects Greater than $5.0M
Exelon Baltimore, MD $164,662 $3,634 $161,028 1Q 2016
Hyatt Place Baltimore / Inner Harbor Hotel Baltimore, MD 24,943 6,470 18,473 3Q 2014
City of Suffolk Municipal Center Suffolk, VA 24,708 17,995 6,713 2Q 2015
Main Street Parking Garage(1) Virginia Beach, VA 17,780 15,319 2,461 3Q 2014
Sub Total 232,094 43,418 188,675
Projects Less than $5.0M 81,409 76,767 4,643
Total $313,503 $120,185 $193,318
Gross Profit Summary
Q1 2014
(Unaudited)
Revenue $19,234
Expense (17,985)
Gross Profit $1,249
(1) Related party contracts
ARMADA HOFFLER
PROPERTIES
19
Operating Results & Property-
Type Segment Analysis
ARMADA HOFFLER
PROPERTIES
Same Store NOI by Segment
(Reconciliation to GAAP located in appendix pg. 43)
$ in thousands
Three months ended 3/31
2014 2013 $ Change % Change
Office(1)
(Unaudited)
Revenue $6,549 $6,486 $63 1%
Expenses 2,131 1,946 185 10%
Net Operating Income 4,418 4,540 (122) -3%
Retail(2)
Revenue 5,228 5,005 223 4%
Expenses 1,687 1,680 7 0%
Net Operating Income 3,541 3,325 216 6%
Multi Family(3)
Revenue 1,816 1,907 (91) -5%
Expenses 831 815 16 2%
Net Operating Income 985 1,092 (107) -10%
Same Store Net Operating Income (NOI), GAAP basis $8,944 $8,957 ($13) 0%
Net effect of straight-line rents (387) (215) (172) 80%
Amortization of lease incentives and above (below) market rents 186 196 (10) -5%
Same store portfolio NOI, cash basis $8,743 $8,938 ($195) -2%
Cash Basis:
Office 3,925 4,209 (284) -7%
Retail 3,830 3,631 199 5%
Multifamily 988 1,098 (110) -10%
$8,743 $8,938 ($195) -2%
GAAP Basis:
Office 4,418 4,540 (122) -3%
Retail 3,541 3,325 216 6%
Multifamily 985 1,092 (107) -10%
$8,944 $8,957 ($13) 0%
(1) No assets excluded
(2) Bermuda Crossroads excluded
(3) Smith’s Landing and Liberty Apartments excluded
ARMADA HOFFLER
PROPERTIES
21
Top 10 Tenants by Annual Base Rent
As of March 31, 2014
Office Portfolio
Tenant
Number of Leases
Number of Properties
Property(ies)
Lease Expiration
Annualized Base Rent
% of Office Portfolio Annualized Base Rent
% of Total Portfolio Annualized Base Rent
Williams Mullen 3 2 Armada Hoffler Tower, Richmond Tower 3/19/2026 $7,374,020 29.8% 13.3%
Sentara Medical Group 1 1 Sentara Williamsburg 3/31/2023 1,006,140 4.1% 1.8%
Troutman Sanders LLP 1 1 Armada Hoffler Tower 8/24/2022 990,151 4.0% 1.8%
Cherry Bekaert & Holland 3 3 Armada Hoffler Tower, Richmond Tower, Oyster Point 9/20/2022 942,900 3.8% 1.7%
GSA 1 1 Oyster Point 4/26/2017 870,047 3.5% 1.6%
Pender & Coward 2 1 Armada Hoffler Tower 5/31/2030 818,985 3.3% 1.5%
The Art Institute 1 1 Two Columbus 12/31/2019 787,226 3.2% 1.4%
Kimley- Horn 1 1 Two Columbus 12/31/2018 685,863 2.8% 1.2%
Hampton University 2 1 Armada Hoffler Tower 5/3/2023 629,935 2.5% 1.1%
Hankins & Anderson 1 1 Armada Hoffler Tower 4/30/2022 572,601 2.3% 1.0%
Top 10 Total $14,677,867 59.3% 26.5%
Retail Portfolio
Tenant
Number of Leases
Number of Properties
Property(ies)
Lease Expiration
Annualized Base Rent
% of Retail Portfolio Annualized Base Rent
% of Total Portfolio Annualized Base Rent
Home Depot 2 2 Broad Creek Shopping Center, North Point Center 12/3/2019 $2,032,600 10.0% 3.7%
Harris Teeter 2 2 Tyre Neck Harris Teeter, Hanbury Village 10/16/2028 1,430,001 7.0% 2.6%
Food Lion 3 3 Broad Creek Shopping Center, Bermuda Crossroads, Gainsborough Square 3/19/2020 1,282,568 6.3% 2.3%
Dick’s Sporting Goods 1 1 Dick’s at Town Center 1/31/2020 798,000 3.9% 1.4%
Regal Cinemas 1 1 Harrisonburg Regal 4/23/2019 683,550 3.4% 1.2%
PetsMart 2 2 Broad Creek Shopping Center, North Point Center 7/21/2018 618,704 3.0% 1.1%
Kroger 1 1 North Point Center 8/31/2018 552,864 2.7% 1.0%
Yard House 1 1 Commerce Street Retail 11/30/2023 538,000 2.6% 1.0%
Rite Aid 2 2 Gainsborough Square, Parkway Marketplace 5/29/2019 484,193 2.4% 0.9%
Walgreens 1 1 Hanbury Village 12/31/2083 447,564 2.2% 0.8%
Top 10 Total $8,868,044 43.5% 16.0%
ARMADA HOFFLER
PROPERTIES
22
Office Lease Summary
Renewal Lease Summary(1)
GAAP
Cash
Quarter
Number of Leases Signed
Net rentable SF Signed
Leases Expiring
Net rentable SF Expiring
Contractual Rent per SF
Prior Rent per SF
Annual Change in Rent per SF
Contractual Rent per SF
Prior Rent per SF
Annual Change in Rent per SF
Weighted Average Lease Term
TI, LC, & Incentives
TI, LC, & Incentives per SF
1st Quarter 2014
1
25,506
2
5,430
$32.28
$26.66
$5.63
$29.95
$29.25
$0.70
10.00
$1,315,127
$51.56
4th Quarter 2013
5
45,677
4
5,112
26.74
25.27
1.47
23.58
27.97
(4.39)
11.34
1,927,309
42.19
3rd Quarter 2013
5
16,289
4
30,038
29.18
26.76
2.42
28.26
27.92
0.33
6.79
60,809
3.73
2nd Quarter 2013
6
29,725
4
16,635
22.86
23.14
(0.28)
21.81
24.20
(2.39)
5.68
481,389
16.19
New Lease Summary(1)
Quarter
Number of Leases Signed
Net rentable SF Signed
Contractual Rent per SF
Weighted Average Lease Term
TI, LC, & Incentives
TI, LC, & Incentives per SF
1st Quarter 2014
2
5,430
$24.12
1.00
$5,239
$0.96
4th Quarter 2013
4
18,381
23.56
10.34
577,382
31.41
3rd Quarter 2013
1
1,142
29.50
5.00
3,577
3.13
2nd Quarter 2013
2
4,046
26.77
5.00
165,628
40.94
(1) Excludes leases for space occupied by AHH.
ARMADA HOFFLER
PROPERTIES
23
Office Lease Expirations
Year of Lease Expiration
Number of Leases Expiring
Square Footage of Leases Expiring
% Portfolio Net Rentable Square Feet
Annualized Base Rent
% of Portfolio Annualized Base Rent
Annualized Base Rent per Leased Square Foot
Available
-
43,596
4.6%
$0
-
$0.00
2014
10
45,776
4.8%
1,277,380
5.2%
27.91
2015
11
35,957
3.8%
792,098
3.2%
22.03
2016
10
33,481
3.5%
792,784
3.2%
23.68
2017
5
65,186
6.9%
1,572,403
6.4%
24.12
2018
16
156,166
16.4%
4,211,488
17.0%
26.97
2019
6
71,512
7.5%
1,641,580
6.6%
22.96
2020
3
25,283
2.7%
772,781
3.1%
30.57
2021
4
41,363
4.4%
946,930
3.8%
22.89
2022
4
81,129
8.5%
2,270,814
9.2%
27.99
2023
4
105,160
11.1%
2,319,039
9.4%
22.05
Thereafter
7
245,761
25.9%
8,148,637
32.9%
33.16
Total / Weighted Average
80
950,370
100.0%
$24,745,933
100.0%
$27.29
35.0%
32.9%
30.0%
25.0%
20.0%
17.0%
15.0%
9.2%
9.4%
10.0%
6.4%
6.6%
5.2%
5.0%
3.2%
3.2%
3.1%
3.8%
0.0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Thereafter
ARMADA HOFFLER
PROPERTIES
24
Retail Lease Summary
Renewal Lease Summary(1)
GAAP
Cash
Quarter
Number of Leases Signed
Net rentable SF Signed
Leases Expiring
Net rentable SF Expiring
Contractual Rent per SF
Prior Rent per SF
Annual Change in Rent per SF
Contractual Rent per SF
Prior Rent per SF
Annual Change in Rent per SF
Weighted Average Lease Term
TI, LC, & Incentives
TI, LC, & Incentives per SF
1st Quarter 2014
5
23,857
3
6,540
$20.84
$20.41
$0.43
$21.18
$21.82
($0.64)
4.55
$63,339
$2.65
4th Quarter 2013
7
37,733
6
7,928
13.82
13.49
0.33
13.79
14.12
(0.33)
4.70
40,540
1.07
3rd Quarter 2013
6
24,506
3
3,648
24.26
25.11
(0.85)
23.55
28.34
(4.79)
5.67
227,766
9.29
2nd Quarter 2013
6
26,345
3
7,728
17.02
17.40
(0.37)
16.50
18.03
(1.53)
4.12
-
-
New Lease Summary(1)
Quarter
Number of Leases Signed
Net rentable SF Signed
Contractual Rent per SF
Weighted Average Lease Term
TI, LC, & Incentives
TI, LC, & Incentives per SF
1st Quarter 2014
1
3,160
$16.25
$10.50
$126,558
$40.05
4th Quarter 2013
2
3,270
18.67
5.06
75,884
23.21
3rd Quarter 2013
-
-
-
-
-
-
2nd Quarter 2013
6
20,037
11.59
5.34
433,101
21.62
(1) Excludes leases from space occupied by AHH
ARMADA HOFFLER
PROPERTIES
25
Retail Lease Expiration
Year of Lease Expiration
Number of Leases Expiring
Square Footage of Leases Expiring
% Portfolio Net Rentable Square Feet
Annualized Base Rent
% of Portfolio Annualized Base Rent
Annualized Base Rent per Leased Square Foot
Available
-
72,603
6.6%
$0
-
$0.00
2014
14
23,711
2.2%
418,056
2.5%
17.63
2015
19
65,030
6.0%
1,357,952
8.0%
20.88
2016
21
61,469
5.6%
1,442,928
8.5%
23.47
2017
21
139,345
12.8%
1,970,406
11.6%
14.14
2018
19
120,295
11.0%
1,736,312
10.2%
14.43
2019
17
299,541
27.4%
4,303,255
25.3%
14.37
2020
6
132,094
12.1%
1,647,180
9.7%
12.47
2021
5
25,204
2.3%
740,832
4.4%
29.39
2022
5
79,588
7.3%
1,151,218
6.8%
14.46
2023
5
27,625
2.5%
869,930
5.1%
31.49
Thereafter
7
45,806
4.2%
1,386,792
8.1%
30.28
Total / Weighted Average
139
1,092,311
100.0%
$17,024,862
100.0%
$16.70
30.0%
25.3%
25.0%
20.0%
15.0%
11.6%
10.2%
9.7%
10.0%
8.0%
8.5%
8.1%
6.8%
4.4%
5.1%
5.0%
2.5%
0.0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Thereafter
ARMADA HOFFLER
PROPERTIES
26
Historical Occupancy
Occupancy - All Properties as of
Sector
3/31/2014
12/31/2013
9/30/2013
6/30/2013
3/31/2013
Office (1)
95.4%
95.2%
93.4%
93.4%
93.9%
Retail (1)
93.4%
93.4%
93.6%
94.6%
93.9%
Multifamily(2)
94.2%
94.2%
92.7%
91.2%
93.3%
Weighted Average(3)
94.5%
94.4%
93.3%
93.5%
93.8%
(1) Office and retail occupancy based on leased square feet as a % of respective total
(2) Multifamily occupancy based on occupied units as a % of respective total
(3) Total occupancy weighted by annualized base rent
ARMADA HOFFLER
PROPERTIES
27
Multifamily Occupancy
Occupancy Summary - Smiths Landing (284 available units)
Quarter Ended
Number of Units Occupied
Percentage Occupied(1)
Annualized Base Rent(2)
Average Monthly Rent per Occupied Unit
3/31/2014
283
99.6%
$3,430,260
$1,010
12/31/2013
282
99.3%
3,382,380
1,000
9/30/2013
284
100.0%
3,427,980
1,006
6/30/2013
264
93.0%
3,163,164
998
3/31/2013
284
100.0%
3,395,184
996
Occupancy Summary - The Cosmopolitan (342 available units)
Quarter Ended
Number of Units Occupied
Percentage Occupied(1)
Annualized Base Rent(2)(4)
Average Monthly Rent per Occupied Unit(3)
3/31/2014
307
89.8%
$5,799,564
$1,574
12/31/2013
308
90.1%
5,721,144
1,548
9/30/2013
296
86.5%
5,506,764
1,550
6/30/2013
307
89.9%
5,818,908
1,580
3/31/2013
300
87.7%
5,490,864
1,525
(1) Total units occupied as of each respective date
(2) Annualized base rent is calculated by multiplying (a) contractual rent due from our tenants for the last month of the respective quarter by (b) 12
(3) Average Monthly Rent per Occupied Unit is calculated as (a) annualized base rent divided by (b) the number of occupied units as of the end of the respective date.
(4) Excludes annualized base rent from retail leases
ARMADA HOFFLER
PROPERTIES
28
Appendix - Understanding AHH
ARMADA HOFFLER
PROPERTIES
Understanding AHH – Corporate Overview
Armada Hoffler Properties, Inc. is a full-service real estate investment trust (REIT) and property company that develops, builds, owns and manages institutional grade office, retail and multifamily properties in the Mid-Atlantic U.S. The Company also provides general construction and development services to third-party clients throughout the Mid-Atlantic and Southeastern regions of the U.S. Armada Hoffler Properties was founded in 1979 and is headquartered in Virginia Beach, VA.
Diversified portfolio consisting of Office, Retail and Multifamily properties
Institutional grade portfolio focused on the Mid-Atlantic region
35 year corporate track record with senior leadership team averaging more than 20 years with the company
Market Cap of ~$330 million as of 3/31/14
Management and previous partners own in excess of 40% of the company through limited partnership units in the operating partnership
Current Portfolio & Development Pipeline Previous Construction or Development Projects
ARMADA HOFFLER
PROPERTIES
30
Understanding AHH –
Differentiation Provides Value Creation
1. Advantages of Core Stabilized Portfolio:
– Consistent cash flow
– High occupancy
– Stable same store metrics
2. Advantages of Wholesale Development Pipeline Engine:
– Equity creation
– Asset base growth
3. Advantages of Construction Company:
– Stable earnings and value creation
– Reduces risk in selecting/executing development opportunities
– Brand recognition in new markets
Development Engine
ARMADA HOFFLER
PROPERTIES
Stable Portfolio
Construction Business
Sum of the Parts Leads to Valuation
ARMADA HOFFLER
PROPERTIES
31
Business Segmentation Overview
Definition
Characteristics
Valuation
Stabilized Portfolio
Includes stabilized
office, retail, and
multifamily real estate
(defined as the earlier of
80% occupancy or the
13th full quarter after
CO)
Consistent cash flow
Traditional real estate valuation, NAV/Cap Rates
High occupancy
Stable same store metrics
Development Pipeline
Real estate assets in development or ramping towards stabilization
Value creation
Equity Creation
Asset base growth
Construction Business
3rd party construction business
Stable earnings and value creation
Reduces risk in selecting/executing development opportunities
Multiples analysis
Brand recognition in new markets
ARMADA HOFFLER
PROPERTIES
32
Components of NAV
Stabilized Portfolio NOI x Market Cap Rate = Stabilized Portfolio Value
+
Development Value Creation x Appropriate Discount Rate = Equity Value
+
Operating Company Income x Market Multiple = Operating Company Value
+
Other Assets
–
Liabilities
NAV
See Pages 34-37 for Further Information Regarding the Components of NAV
ARMADA HOFFLER
PROPERTIES
33
1) Understanding AHH –Stabilized Portfolio
(Reconciliation to GAAP located in appendix pg. 44) $ in thousands
Cash NOI
Three months
ended 3/31/2014
Annualized
(Unaudited)
Diversified Portfolio
Office
$2,055
$8,220
Retail
2,999
11,996
Multifamily (1)
623
2,492
Total Diversified Portfolio NOI
$5,677
$22,708
Virginia Beach Town Center
Office(2)
$2,007
$8,028
Retail (2)
1,251
5,004
Multifamily
988
3,952
Total Virginia Beach Town Center NOI
$4,246
$16,984
Total Stabilized Portfolio NOI
$9,923
$39,692
(1) Excludes Liberty Apartments
(2) Includes leases for space occupied by Armada Hoffler which are eliminated for GAAP purposes totaling ~$210K per quarter
ARMADA HOFFLER
PROPERTIES
34
2) Understanding AHH –Identified & Next Generation Pipeline
$ in thousands, unaudited
Note: The data below reflects the Company’s current estimates and projections, which may change as a result of various factors. The Company can make no assurances that the estimates and projections below will actually be realized.
Estimated Cost
Estimated Stabilized NOI
Estimated Return on Cost
Projected Value Spread
The Company’s Estimated Equity Creation
The Company’s Est. Equity Creation Excluding JV Ownership
Identified Pipeline $139,000 $11,400 8.20% 125bp $24,995 $23,903
Next Generation Pipeline 150,000 12,400 8.27% 150bp 33,251 33,251
Liberty Apartments 30,700(1) 2,000 6.51% -
Estimated Stabilized Value/Weighted Average $319,700 $25,800 8.24% $58,246 $57,154
Greater than $57M in Equity Creation – 3 to 4 Years
(1) Purchase price
ARMADA HOFFLER
PROPERTIES
35
3) Understanding AHH – 3rd Party Construction
$ in thousands
Gross Profit - metric to use when evaluating the profitability and valuation of the general contracting & real estate services segment
Gross Profit Summary
Q1 2014
(Unaudited)
Revenue $19,234
Expense (17,985)
Gross Profit $1,249
Construction Company - Ongoing Profitable Business with Intrinsic Value
ARMADA HOFFLER
PROPERTIES
36
4) NAV Component Data
$ in thousands
Stabilized Portfolio NOI (Cash)
Annualized three months ended
3/31/2014
Diversified Portfolio
Office $8,220
Retail 11,996
Multifamily 2,492
Total Diversified Portfolio NOI (pg. 34) $22,708
Virginia Beach Town Center
Office(1) $8,028
Retail (1) 5,004
Multifamily 3,952
Total Virginia Beach Town Center NOI (pg. 34) $16,984
Stabilized Portfolio NOI (Cash) $39,692
Other Assets
As of 3/31/2014
Other Assets
Cash and Cash Equivalents $13,444
Restricted Cash 2,754
Accounts Receivable 18,884
Construction receivables, including retentions 12,736
Other Assets 25,799
Total Other Assets $73,617
Development Pipeline
Development Investment as of 3/31/2014 $78,536
The Company’s Estimated Equity Creation - 3-4 years (pg. 35) 58,246
$136,782
Operating Companies
Outlook
3/31/2014
General Contracting and Real Estate Services per $4,000
Company 2014 parameters (pg. 7)
Liabilities & Share Count
As of 3/31/2014
Liabilities
Mortgages and notes payable $317,271
Accounts payable and accrued liabilities 7,158
Construction payables, including retentions 27,047
Other Liabilities 16,264
Total Liabilities $367,740
Share Count
Weighted Average Common Shares Outstanding 19,193
Weighted Average Operating Partnership (“OP”) Units Outstanding 13,632
Total Weighted Average Common shares and OP units outstanding 32,825
(1) Includes leases for space occupied by Armada Hoffler which are eliminated for GAAP purposes totaling ~$210K per quarter
ARMADA HOFFLER
PROPERTIES
37
Appendix –
Definitions & Reconciliations
ARMADA HOFFLER
PROPERTIES
Definitions
Net Operating Income:
We calculate Net Operating Income (“NOI”) as property revenues (base rent, expense reimbursements and other revenue) less property expenses (rental expenses and real estate taxes). For our office, retail and multifamily segments, NOI excludes general contracting and real estate services expenses, depreciation and amortization, general and administrative expenses, and impairment charges. Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to such other REITs’ NOI. NOI is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, net operating income should not be considered an alternative to cash flows as a measure of liquidity. We consider NOI to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of our real estate business. (Reconciliation to GAAP located in appendix pg. 45)
Funds From Operations:
We calculate Funds From Operations (“FFO”) in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as net income (loss) (calculated in accordance with accounting principles generally accepted in the United States (“GAAP”)), excluding gains (or losses) from sales of depreciable operating property, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures.
FFO is a supplemental non-GAAP financial measure. Management uses FFO as a supplemental performance measure because it believes that FFO is beneficial to investors as a starting point in measuring our operational performance. Specifically, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, which do not relate to or are not indicative of operating performance, FFO provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. Other equity REITs may not calculate FFO in accordance with the NAREIT definition as we do, and, accordingly, our FFO may not be comparable to such other REITs’ FFO.
ARMADA HOFFLER
PROPERTIES
39
Definitions
Core Funds From Operations:
We calculate Core Funds From Operations (“Core FFO”) as FFO calculated in accordance with the standards established by NAREIT, adjusted for losses on debt extinguishments, non-cash stock compensation and impairment charges. Such items are non-recurring or non-cash in nature. Our calculation of Core FFO also excludes acquisition costs and the impact of development pipeline projects that are still in lease-up. We generally consider a property to be in lease-up until the earlier of (i) the quarter after which the property reaches 80% occupancy or (ii) the thirteenth quarter after the property receives its certificate of occupancy.
Management believes that the computation of FFO in accordance to NAREIT’s definition includes certain items that are not indicative of the results provided by the Company’s operating portfolio and affect the comparability of the Company’s period-over-period performance. Our calculation of Core FFO differs from NAREIT’s definition of FFO. Other equity REITs may not calculate Core FFO in the same manner as us, and, accordingly, our Core FFO may not be comparable to other REITs’ Core FFO.
Adjusted Funds From Operations:
We calculate Adjusted Funds From Operations (“AFFO”) as Core FFO, (i) excluding the impact of tenant improvement and leasing commission costs, capital expenditures, the amortization of deferred financing fees, derivative (income) loss, the net effect of straight-line rents and the amortization of lease incentives and net above (below) market rents and (ii) adding back the impact of development pipeline projects that are still in lease-up and government development grants that are not included in FFO.
Management believes that AFFO provides useful supplemental information to investors regarding our operating performance as it provides a consistent comparison of our operating performance across time periods and allows investors to more easily compare our operating results with other REITs. However, other REITs may use different methodologies for calculating AFFO or similarly entitled FFO measures and, accordingly, our AFFO may not always be comparable to AFFO or other similarly entitled FFO measures of other REITs.
ARMADA HOFFLER
PROPERTIES
40
Definitions
EBITDA:
We calculate EBITDA as net income (loss) (calculated in accordance with GAAP), excluding interest expense, income taxes and depreciation and amortization. Management believes EBITDA is useful to investors in evaluating and facilitating comparisons of our operating performance between periods and between REITs by removing the impact of our capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from our operating results.
Core EBITDA:
We calculate Core EBITDA as EBITDA, excluding certain items, including, but not limited to, non-recurring or extraordinary gains (losses), early extinguishment of debt, derivative (income) losses, acquisition costs and the impact of development pipeline projects that are still in lease-up. We generally consider a property to be in lease-up until the earlier of (i) the quarter after which the property reaches 80% occupancy or (ii) the thirteenth quarter after the property receives its certificate of occupancy. Management believes that Core EBITDA provides useful supplemental information to investors regarding our ongoing operating performance as it provides a consistent comparison of our operating performance across time periods and allows investors to more easily compare our operating results with other REITs. However, other REITs may use different methodologies for calculating Core EBITDA or similarly entitled measures and, accordingly, our Core EBITDA may not always be comparable to Core EBITDA or other similarly entitled measures of other REITs.
Core Debt:
We calculate Core Debt as our total debt, excluding any construction loans associated with our development pipeline.
Same Store Portfolio:
We define same store properties as including those properties that were owned and operated for the entirety of the period being presented and excluding properties that were in lease-up during the period present. We generally consider a property to be in lease-up until the earlier of (i) the quarter after which the property reaches 80% occupancy or (ii) the thirteenth quarter after the property receives its certificate of occupancy. The following table shows the properties included in the same store and non-same store portfolio for the comparative periods presented.
ARMADA HOFFLER
PROPERTIES
41
Same Store vs. Non-Same Store Properties
Comparison of Three Months Ended
March 31, 2014 to 2013
Same Store
Non-Same Store
Office Properties
Armada Hoffler Tower X
One Columbus X
Two Columbus X
Virginia Natural Gas X
Richmond Tower X
Oyster Point X
Sentara Williamsburg X
Retail Properties
Bermuda Crossroads X
Broad Creek Shopping Center X
Courthouse 7-Eleven X
Gainsborough Square X
Hanbury Village X
North Point Center X
Parkway Marketplace X
Harrisonburg Regal X
Dick’s at Town Center X
249 Central Park Retail X
Studio 56 Retail X
Commerce Street Retail X
Fountain Plaza Retail X
South Retail X
Tyre Neck Harris Teeter X
Multifamily
Smith’s Landing X
The Cosmopolitan X
Liberty Apartments X
ARMADA HOFFLER
PROPERTIES
42
Reconciliation to GAAP - Segment Portfolio NOI
$ in thousands
Three months ended 3/31
2014
2013
Office Same Store
Rental revenues (1) $6,549 $6,486
Property expenses 2,131 1,946
NOI 4,418 4,540
Non-Same Store NOI - -
Segment NOI $4,418 $4,540
Retail Same Store(2)
Rental revenues $5,228 $5,005
Property expenses 1,687 1,680
NOI 3,541 3,325
Non-Same Store NOI 404 -
Segment NOI $3,945 $3,325
Multifamily Same Store(3)
Rental revenues $1,816 $1,907
Property expenses 831 815
NOI 985 1,092
Non-Same Store NOI 526 -
Segment NOI 1,511 1,092
Total Segment Portfolio NOI $9,874 $8,957
No assets excluded
Bermuda Crossroads excluded
Smith’s Landing and Liberty Apartments excluded
ARMADA HOFFLER
PROPERTIES
43
Reconciliation to GAAP - Segment Portfolio NOI
$ in thousands
Three months ended 3/31/2014
Diversified Portfolio
Office
Retail
Multifamily
Total
Cash NOI $2,055 $2,999 $623 $5,677
Net effect of straight-line rents 248 (106) (13) 129
Amortization of lease incentives and (above) below market rents (13) 39 (14) 12
GAAP NOI $2,290 $2,932 $596 $5,818
Town Center of Virginia Beach
Office
Retail
Multifamily
Total
Cash NOI $2,007 $1,251 $988 $4,246
Net effect of straight-line rents 287 (22) (3) 262
Amortization of lease incentives and (above) below market rents (26) (146) - (172)
Elimination of AHH rent (140) (70) - (210)
GAAP NOI $2,128 $1,013 $985 $4,126
GAAP NOI
Office
Retail
Multifamily
Total
Diversified Portfolio $2,290 $2,932 $596 $5,818
Town Center of Virginia Beach 2,128 1,013 985 4,126
Unstabilized Properties - - (70) (70)
Total Segment Portfolio GAAP NOI $4,418 $3,945 $1,511 $9,874
ARMADA HOFFLER
PROPERTIES
44
Reconciliation to GAAP - Segment Portfolio NOI
$ in thousands
Three months ended 3/31/2014
Office
Retail
Multifamily
Total Rental Properties
General Contracting & Real Estate Services
Total
Segment revenues $6,549 $5,770 $2,874 $15,193 $19,234 $34,427
Segment expenses 2,131 1,825 1,363 5,319 17,985 23,304
Net operating income $4,418 $3,945 $1,511 $9,874 $1,249 $11,123
Depreciation and amortization (3,969)
General and administrative expenses (2,046)
Interest expense (2,565)
Other income (expense) 112
Income tax provision (149)
Net income $2,506
ARMADA HOFFLER
PROPERTIES
45