As an analyst, I usually start my articles by going over the most recent quarterly results. This time I won't be going over the Q4 2025 results. Why? Effective March 2, Armada Hoffler Properties (I'm Luuk Wierenga, an economics teacher from the Netherlands with a strong passion for income investing. My investment journey began during the COVID-19 pandemic, and since then, I've specialized in identifying Real Estate Investment Trusts (REITs) that are temporarily out-of-favor with Mr. Market. As an educator, ...

Real estate financing investments: The company has an LOI with an institutional buyer to acquire interests in two of four investments and is discussing an exit from a third with its partner. The fourth investment is being marketed, with Tibbetts noting comparable cap rates in the low-5 cap range and expectations for a near-term closing.Construction business: Tibbetts said the exit is “effectively complete,” with terms “substantially finalized” with a buyer.Multifamily: The company is under a letter of inten ...

Financial Data and Key Metrics Changes - For Q4 2025, normalized FFO attributable to common shareholders was $29.5 million or $0.29 per diluted share, exceeding expectations [24] - FFO attributable to common shareholders was $23.1 million or $0.23 per diluted share, while AFFO was $17.8 million or $0.17 per diluted share [25] - Same-store NOI for the portfolio increased 6.3% on a GAAP basis and 7.1% on a cash basis [25] - For the full year 2025, normalized FFO attributable to common shareholders was $110.1 million or $1.08 per diluted share, above guidance [27] Business Line Data and Key Metrics Changes - Retail same-store NOI for Q4 was up 5.6% on a GAAP basis and 3.4% on a cash basis, driven by new leasing and rent commencements [15] - Office same-store NOI for Q4 was up over 10% GAAP and nearly 17% cash, supported by leasing and rent commencements [19] - Year-over-year, office same-store NOI increased 6% GAAP and 7% cash, with occupancy gains at key properties [19] Market Data and Key Metrics Changes - Retail same-store results year-over-year were up 1% GAAP and down 1% cash, impacted by anchor space vacancies due to bankruptcies [15] - Year-end occupancy was just under 95%, affected by temporary seasonal tenants [16] - The office portfolio fundamentals remain strong, with nearly eight years of WALT and only 1.7% rollover in 2026 [23] Company Strategy and Development Direction - The company announced a rebranding to AH Realty Trust, effective March 2nd, marking a strategic transformation [5] - Planned divestitures include the multifamily portfolio and fee income businesses to simplify operations and improve income predictability [6][7] - The focus will shift to retail and office assets in growing markets, aiming for a streamlined operating model and reduced leverage [9][10] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of maintaining full dividend coverage from cash flows generated by operating properties while reducing debt [11] - The company expects 2026 to be a transition year, with guidance reflecting discontinued operations and a focus on disciplined growth [10][12] - Management is confident in the ability to drive consistent NOI growth through proactive leasing and tenant retention [23] Other Important Information - The company is under an LOI for 11 of its 14 multifamily assets, with negotiations progressing towards final terms [7] - The exit of the construction business is nearly complete, and discussions are ongoing for the real estate financing investments [8] - The company aims to improve its long-term growth trajectory and deliver shareholder value more consistently [9] Q&A Session Summary Question: Long-term growth trajectory and financing plans for acquisitions - Management indicated a balanced approach to leverage and capital allocation, emphasizing the need for shares to trade at the right level relative to NAV for future acquisitions [37][38] Question: Expected retail to office NOI split in five years - Management expressed a focus on both retail and office, with an emphasis on retail in the short term while remaining open to opportunities in both sectors [40][41] Question: Context on mixed-use communities and office investments - Management confirmed a capability in mixed-use developments but emphasized a current focus on retail investments, with a willingness to sell office assets if pricing is favorable [46][48] Question: Update on multifamily dispositions - Management is under LOI for 11 assets, aiming for competitive pricing in the mid-5 cap range, with significant progress made in negotiations [50][51] Question: Dividend payout ratio trends - Management indicated a conservative approach to capital allocation, with a focus on maintaining a healthy dividend while simplifying and deleveraging the company [52][53] Question: Development as part of long-term strategy - Management acknowledged the importance of development but indicated a preference for acquisitions in the near term, with surgical development opportunities considered [58][59] Question: Expected growth in core businesses for 2026 - Management noted that 2026 may be a gap year for growth due to vacancies but anticipates stronger growth in 2027 [62]

Armada Hoffler Properties (NYSE:AHH) Q4 2025 Earnings call February 17, 2026 08:30 AM ET Company ParticipantsAndrew Berger - Equity Research AssociateChelsea Forrest - VP of Investor RelationsCraig Ramiro - EVP of Asset ManagementJon Petersen - Managing DirectorMatthew Barnes-Smith - CFOShawn Tibbetts - Chairman, President, and CEOViktor Fediv - Senior Equity Research AssociateOperatorThis call is being recorded on Tuesday, February 17, 2026. I would now like to turn the conference over to Chelsea Forrest, ...

Armada Hoffler Properties (NYSE:AHH) Q4 2025 Earnings call February 17, 2026 08:30 AM ET Speaker5This call is being recorded on Tuesday, February 17, 2026. I would now like to turn the conference over to Chelsea Forrest, Vice President of Investor Relations. Please go ahead.Speaker1Good morning, and thank you for joining Armada Hoffler's fourth quarter 2025 earnings and 2026 guidance conference call and webcast. On the call this morning, in addition to myself, is Shawn Tibbetts, Chairman, President, and CEO ...

GUIDANCE PRESENTATION 2026 2026 OUTLOOK: CONTINUED OPERATIONS | $ IN MILLIONS | | | | --- | --- | --- | | | LOW | HIGH | | RETAIL NOI | $68.5M | $70.0M | | OFFICE NOI | $58.5M | $60.0M | | EQUITY METHOD INVESTMENT ("EMI") PROPERTY INCOME(1) | $3.4M | $3.9M | | ACQUISITION NOI | $1.0M | $1.7M | | TOTAL COMMERCIAL NOI | $131.4M | $135.6M | | G&A EXPENSES | -$19.7M | -$18.7M | | INTEREST EXPENSE | -$57.2M | -$54.2M | | OTHER NOI(2) | $8.9M | $9.9M | | PREFERRED STOCK DIVIDENDS | -$11.5M | -$11.5M | | PRO FORMA ...

CORPORATE PROFILE Armada Hoffler (NYSE: AHH) is a vertically integrated, self-managed real estate investment trust ("REIT") with over four decades of experience managing high-quality properties located primarily in the Mid-Atlantic and Southeastern United States. The Company's focus is to deliver long-term, sustainable shareholder value by consistently investing in and operating the highest-quality assets, maintaining a robust and resilient balance sheet, and fostering a dynamic, highly skilled team. Founde ...

Core Viewpoint - The company is undergoing a significant transformation, rebranding as AH Realty Trust, to streamline operations, strengthen its balance sheet, and focus on long-term shareholder value creation [1][9]. Group 1: Business Restructuring - The company is executing a fundamental business restructuring aimed at eliminating complexity and establishing a new strategic direction [1]. - A year-long examination has led to a rebuilt strategy, operating model, and capital allocation priorities to create a more disciplined platform [1]. - The company is exiting the multifamily property sector and divesting its construction and real estate financing businesses to sharpen its focus on retail and office properties [6]. Group 2: Asset Sales and Capital Allocation - The company has entered into a letter of intent for the potential sale of 11 out of 14 multifamily assets, with expectations for completion in 2026 [2]. - Proceeds from these sales will primarily be directed towards debt reduction, targeting a net debt to total adjusted EBITDA ratio of 5.5x–6.5x [3]. - The company is also evaluating acquisition opportunities in markets that align with its operational strengths [5]. Group 3: Leadership and Governance - Shawn Tibbetts has assumed the role of Chairman of the Board, providing unified leadership for the strategic plan [8]. - The executive team has been expanded with cross-industry expertise to enhance operational execution and accountability [8]. - The company is modernizing its executive compensation program to align with shareholder return metrics [8]. Group 4: New Investment Mandate - The new investment strategy focuses on expanding the retail real estate portfolio, reflecting confidence in the segment's cash flow and growth potential [4]. - The company aims to target investments in markets with strong fundamentals that support sustained future rent growth [4]. Group 5: Rebranding and Corporate Identity - The company will officially rebrand as AH Realty Trust on March 2, 2026, with new trading symbols on the NYSE [10][11]. - The rebranding will not affect the organizational structure or stockholder rights, and no action is required from securityholders [11].

Core Insights - Armada Hoffler Properties, Inc. reported a GAAP net loss of $0.01 per diluted share for Q4 2025 and $0.08 per diluted share for the full year 2025, compared to a net income of $0.26 per diluted share for Q4 2024 [1][4][7] - The company achieved a normalized FFO of $0.29 per diluted share for Q4 2025 and $1.08 per diluted share for the full year 2025, reflecting an increase from $0.27 per diluted share in Q4 2024 [1][6][7] - Office same-store NOI growth was reported at 10.4% on a GAAP basis, with positive renewal spreads in both office (9.1% GAAP) and retail (15.3% GAAP) segments [1][4][6] Financial Results - The net loss attributable to common stockholders for Q4 2025 was $1.0 million, a significant decline from a net income of $26.1 million in Q4 2024, primarily due to prior gains from property dispositions [4][5] - FFO for Q4 2025 was $23.1 million, down from $29.7 million in Q4 2024, attributed to decreased unrealized gains on derivatives and increased interest expenses [6][7] - Normalized FFO for Q4 2025 increased to $29.5 million from $27.8 million in Q4 2024, driven by higher portfolio NOI [6][7] Operating Performance - As of December 31, 2025, the company's weighted average stabilized portfolio occupancy was 95.3%, with retail occupancy at 94.9%, office occupancy at 96.4%, and multifamily occupancy at 94.6% [4][8] - Same Store NOI increased by 6.3% on a GAAP basis compared to Q4 2024 [4][6] Balance Sheet and Financing Activity - Total debt outstanding as of December 31, 2025, was $1.5 billion, with 96% of the debt being fixed or economically hedged [9] - The company acquired Solis Gainesville II on December 10, 2025, which included the repayment of a $26.9 million preferred equity investment [4][7] Recent Developments - The Board of Directors appointed Shawn J. Tibbetts as Chairman effective January 1, 2026, completing a succession plan initiated in 2024 [4][6] - New retail leases were opened in Q4 2025 at Columbus Village II, contributing to the overall occupancy rate of 95.3% [4][6]

Core Viewpoint - The article discusses the best Real Estate Investment Trusts (REITs) to consider for investment as February 2026 approaches, starting with the lowest to the highest yielders [1]. Group 1: Company Analysis - Invitation Homes (INVH) is highlighted as one of the REITs under consideration for investment [1].