[Armada Hoffler Q2 2025 Earnings Release](index=1&type=section&id=Armada%20Hoffler%20Q2%202025%20Earnings%20Release) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) The company reported higher GAAP Net Income but lower Normalized FFO per share, maintaining strong portfolio occupancy Q2 2025 Key Financial Metrics (per diluted share) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **GAAP Net Income** | $0.04 | $0.00 | | **FFO** | $0.19 | $0.25 | | **Normalized FFO** | $0.25 | $0.34 | Stabilized Portfolio Occupancy (as of June 30, 2025) | Segment | Occupancy Rate | | :--- | :--- | | **Overall** | 94.9% | | **Retail** | 94.2% | | **Office** | 96.3% | | **Multifamily** | 94.0% | - The company achieved positive renewal spreads across its commercial segments, indicating strong leasing demand[3](index=3&type=chunk) Q2 2025 Commercial Renewal Spreads | Segment | GAAP Basis | Cash Basis | | :--- | :--- | :--- | | **Retail** | 10.8% | 5.5% | | **Office** | 11.7% | 5.5% | - During the quarter, the company executed 14 renewals and 10 new commercial leases, totaling approximately **161,000 net rentable square feet**[1](index=1&type=chunk)[3](index=3&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) Net income increased due to a one-time gain, while FFO and Normalized FFO declined from lower contracting profit and higher interest expense [Key Financial Metrics (YoY Comparison)](index=2&type=section&id=Key%20Financial%20Metrics%20(YoY%20Comparison)) A significant one-time gain boosted net income, while lower general contracting profit and higher expenses reduced FFO and Normalized FFO - The increase in net income from $0.4 million in Q2 2024 to **$3.9 million in Q2 2025** was primarily due to a **$6.9 million gain** on the consolidation of Allied | Harbor Point[4](index=4&type=chunk) - FFO decreased from $22.4 million to **$19.0 million** year-over-year, mainly due to lower general contracting gross profit, higher interest expense, and equity losses from unconsolidated entities[5](index=5&type=chunk) - Normalized FFO decreased from $30.2 million to **$25.4 million** year-over-year, also driven by a decline in general contracting gross profit and equity losses[5](index=5&type=chunk) FFO & Normalized FFO Reconciliation Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net Income attributable to common stockholders** | $3,907 | $375 | | **FFO attributable to common stockholders** | $18,971 | $22,439 | | **Normalized FFO available to common stockholders** | $25,390 | $30,204 | [Consolidated Balance Sheet](index=6&type=section&id=Consolidated%20Balance%20Sheet) Total assets and liabilities grew, driven by increases in income-producing properties and net indebtedness respectively Selected Balance Sheet Data (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Net real estate investments** | $1,977,732 | $1,745,078 | | **Total Assets** | $2,576,671 | $2,512,863 | | **Indebtedness, net** | $1,446,820 | $1,295,559 | | **Total Liabilities** | $1,715,880 | $1,623,194 | | **Total Equity** | $860,791 | $889,669 | [Consolidated Income Statement](index=7&type=section&id=Consolidated%20Income%20Statement) Total revenues declined due to lower contracting activity, but operating and net income increased, boosted by a consolidation gain Selected Income Statement Data (in thousands) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total revenues** | $101,263 | $184,736 | | **Operating income** | $19,968 | $18,555 | | **Gain on consolidation of real estate entities** | $6,915 | $— | | **Net income** | $6,717 | $3,279 | [Operating Performance](index=2&type=section&id=Operating%20Performance) The stabilized portfolio maintained high occupancy, Same Store NOI grew, and the construction backlog stood at $106.6 million [Portfolio Performance & Leasing Activity](index=2&type=section&id=Portfolio%20Performance%20%26%20Leasing%20Activity) The portfolio showed strong occupancy across all segments, with positive rental rate spreads on commercial lease renewals Stabilized Operating Portfolio Occupancy (Q2 2025) | Segment | Occupancy Rate | | :--- | :--- | | **Retail** | 94.2% | | **Office** | 96.3% | | **Multifamily** | 94.0% | - Positive renewal spreads were achieved in both the retail segment (**10.8% GAAP, 5.5% Cash**) and the office segment (**11.7% GAAP, 5.5% Cash**)[3](index=3&type=chunk) - A total of **161,000 net rentable square feet** were leased through 14 renewals and 10 new commercial leases in Q2 2025[3](index=3&type=chunk) [Construction and Development](index=2&type=section&id=Construction%20and%20Development) The third-party construction contract backlog was $106.6 million, with the segment generating $1.4 million in gross profit - The total third-party construction contract backlog was **$106.6 million** as of June 30, 2025[7](index=7&type=chunk)[8](index=8&type=chunk) - General contracting and real estate services gross profit for the second quarter was **$1.4 million**[8](index=8&type=chunk) [Same Store Net Operating Income (NOI)](index=2&type=section&id=Same%20Store%20Net%20Operating%20Income%20(NOI)) Same Store NOI increased by 1.4% on a GAAP basis, driven by growth in the Office and Multifamily segments - Overall Same Store Net Operating Income (NOI) **increased by 1.4%** on a GAAP basis compared to the quarter ended June 30, 2024[8](index=8&type=chunk) Same Store NOI by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Retail** | $18,236 | $18,143 | | **Office** | $15,263 | $15,027 | | **Multifamily** | $8,014 | $7,777 | [Balance Sheet and Financing](index=2&type=section&id=Balance%20Sheet%20and%20Financing) The company managed $1.4 billion in debt, with 94% fixed or hedged, and executed significant post-quarter financing activities - Total debt outstanding was **$1.4 billion** as of June 30, 2025, of which **94% was fixed or economically hedged**[10](index=10&type=chunk) - On June 10, 2025, the company acquired the remaining interest in its Harbor Point Parcel 4 project, making it a wholly owned subsidiary[8](index=8&type=chunk) - On July 22, 2025, the company issued **$115.0 million of senior unsecured notes** to repay a $65.0 million construction loan and $48.0 million under its revolving credit facility[8](index=8&type=chunk) - On July 24, 2025, the company entered into four interest rate swap agreements with a total notional value of **$820.0 million**[8](index=8&type=chunk) [2025 Full-Year Outlook](index=3&type=section&id=2025%20Full-Year%20Outlook) The company reaffirmed its full-year 2025 Normalized FFO guidance range of $1.00 to $1.10 per diluted share - The company maintained its 2025 full-year Normalized FFO guidance range of **$1.00 to $1.10 per diluted share**[11](index=11&type=chunk) Full-Year 2025 Guidance Assumptions | Metric | Expected Range | | :--- | :--- | | **Portfolio NOI** | $173.6 M - $176.0 M | | **Construction Segment Gross Profit** | $5.0 M - $7.0 M | | **G&A Expenses** | ($17.2 M) - ($16.4 M) | | **Interest Income** | $15.3 M - $16.3 M | | **Adjusted Interest Expense** | ($64.7 M) - ($60.7 M) | - Key operational assumptions for the second half of 2025 include the stabilization of the Southern Post Commercial project in Q4, the acquisition of two real estate financing investments, and one property disposition[14](index=14&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) The company uses FFO, Normalized FFO, and NOI to provide clearer insight into its core operational performance - FFO is calculated according to Nareit standards, which excludes real estate-related depreciation and amortization and gains/losses from property sales to better represent operational performance[18](index=18&type=chunk)[19](index=19&type=chunk) - Normalized FFO adjusts FFO for certain non-comparable items, such as property acquisition costs, mark-to-market adjustments for interest rate derivatives, and severance costs, which management believes provides a more useful performance measure[22](index=22&type=chunk) - NOI is calculated as segment revenues less segment expenses and is the primary measure used by the company's chief operating decision-maker to assess the performance of its business segments[23](index=23&type=chunk) [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) A conference call to discuss Q2 2025 financial results is scheduled for August 5, 2025, at 8:30 a.m. Eastern Time - A webcast and conference call to discuss Q2 2025 results is scheduled for **Tuesday, August 5, 2025, at 8:30 a.m. Eastern Time**[15](index=15&type=chunk) - Dial-in numbers for the live call are **(+1) 800 549 8228 (toll-free)** and **(+1) 646 564 2877 (toll)**, with conference ID **67471**[15](index=15&type=chunk)

Financial Performance - The company reported a GAAP net income of $3.9 million, or $0.04 per diluted share, for the second quarter of 2025, compared to $0.4 million, or $0.00 per diluted share, for the same period in 2024 [3][5] - Funds from operations (FFO) attributable to common stockholders and OP Unit holders were $19.0 million, or $0.19 per diluted share, down from $22.4 million, or $0.25 per diluted share, in the second quarter of 2024 [6][30] - Normalized FFO for the second quarter was $25.4 million, or $0.25 per diluted share, compared to $30.2 million, or $0.34 per diluted share, for the same quarter in 2024 [6][30] Operating Metrics - The weighted average stabilized portfolio occupancy was 94.9%, with retail occupancy at 94.2%, office occupancy at 96.3%, and multifamily occupancy at 94.0% as of June 30, 2025 [6][7] - Same Store Net Operating Income (NOI) increased by 1.4% on a GAAP basis compared to the same quarter in 2024 [6][31] - The company executed 16 commercial lease renewals and 10 new commercial leases during the second quarter, totaling approximately 168,000 net rentable square feet [3][6] Construction and Development - The third-party construction backlog was reported at $106.6 million as of June 30, 2025 [7] - The company acquired the remaining interest in the Harbor Point Parcel 4 project, making it a wholly owned subsidiary [4][5] Debt and Financing - As of June 30, 2025, total debt outstanding was $1.4 billion, with 94% of the debt being fixed or economically hedged [8] - The company entered into a note purchase agreement on July 22, 2025, selling $115.0 million of senior unsecured notes to institutional investors [11] Guidance - The company maintained its full-year 2025 Normalized FFO guidance range of $1.00 to $1.10 per diluted share [9][10]

Group 1 - The investment group High Yield Landlord, led by Jussi Askola, provides real-time updates on a REIT portfolio and transactions, featuring three portfolios: core, retirement, and international [2] - The group offers buy/sell alerts and a chat room for direct interaction with Jussi and his team of analysts, enhancing member engagement and investment decision-making [2] - Jussi Askola, as President of Leonberg Capital, has extensive experience in REIT investing, having authored award-winning academic papers and built relationships with top REIT executives [2] Group 2 - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities, particularly in real estate strategies [1] - The approach has garnered over 500 five-star reviews from satisfied members, indicating a strong level of member satisfaction and perceived value [1]

Group 1 - The article invites active investors to join a free trial and engage in discussions with sophisticated traders and investors [1] Group 2 - There are no disclosed stock, option, or derivative positions in any of the companies mentioned, nor plans to initiate such positions within the next 72 hours [2] - The article expresses the author's own opinions and is not receiving compensation from any company mentioned [2] Group 3 - Past performance is not indicative of future results, and no specific investment recommendations are provided [3] - The views expressed may not reflect those of Seeking Alpha as a whole, and the analysts may not be licensed or certified [3]

Group 1 - The article discusses the tendency of some investors to criticize analysts for their stock predictions, particularly when a stock experiences a significant decline in a short period [1] - It highlights the author's background as an economics teacher from the Netherlands, emphasizing a focus on income investing and identifying undervalued Real Estate Investment Trusts (REITs) [1] - The investment strategy mentioned revolves around long-term horizons, contrarian approaches, and deep-value opportunities [1] Group 2 - The article includes a disclosure indicating a beneficial long position in the shares of AHH, either through stock ownership or derivatives [2] - It clarifies that the article reflects the author's opinions and is not influenced by compensation from any company mentioned [2] - The disclosure also states that past performance does not guarantee future results and that no specific investment advice is being provided [3]

Core Points - Armada Hoffler has successfully closed its inaugural private placement of $115 million in senior unsecured notes, issued in three tranches with maturities of 3, 5, and 7 years, at a blended interest rate of 5.86% and a weighted average maturity of 5.3 years [1][2] - The proceeds from the offering will be utilized for general corporate purposes and to refinance existing debt, enhancing the company's balance sheet flexibility and supporting its long-term strategy [2] - Morningstar DBRS reaffirmed Armada Hoffler's BBB credit rating in January 2025, revising its outlook to stable due to the company's improved leverage profile and diversified real estate portfolio [2] Company Overview - Armada Hoffler is a vertically integrated, self-managed real estate investment trust (REIT) with over 40 years of experience in developing, building, acquiring, and managing high-quality office, retail, and multifamily properties, primarily in the Mid-Atlantic and Southeastern United States [4] - The company also provides general construction and development services to third-party clients, in addition to developing properties for its stabilized portfolio [4]

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at notable firms [1] - He is a Professional Engineer and Project Management Professional, holding degrees in Civil Engineering & Mathematics and a Masters in Engineering with a focus on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in investment strategies [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for investors to engage and share insights [2]

Group 1 - REITs are perceived as income investments with limited growth potential, but they actually offer significant growth and capital gain components, outperforming the S&P [1] - The company has released its latest top investment picks for July 2025, indicating a focus on identifying lucrative opportunities [1] - The company invests substantial resources, over $100,000 annually, into researching profitable investment opportunities, enhancing its real estate strategies [2] Group 2 - The company has received over 500 five-star reviews from satisfied members, reflecting the effectiveness of its investment strategies [2] - The call to action emphasizes the urgency for potential investors to join now to maximize their returns [2]

Core Viewpoint - Armada Hoffler is set to report its second quarter earnings on August 4, 2025, with a conference call scheduled for August 5, 2025, to discuss the results and other relevant information [1]. Group 1: Earnings Announcement - The earnings report for the quarter ending June 30, 2025, will be released at approximately 4:00 p.m. Eastern on August 4, 2025 [1]. - A conference call and webcast will be hosted by senior management at 8:30 a.m. Eastern on August 5, 2025, to discuss the earnings [1]. Group 2: Access Information - To participate in the call, interested parties can dial (+1) 800-549-8228 for toll-free access or (+1) 646-564-2877 for toll access, using conference ID 67471 [2]. - A telephonic replay will be available after the call until September 4, 2025, accessible via (+1) 888-660-6264 or (+1) 646-517-3975 with passcode 67471 [3]. - A replay of the webcast will be available for 30 days starting approximately two hours after the conference call [3]. Group 3: Company Overview - Armada Hoffler is a vertically integrated, self-managed real estate investment trust (REIT) with over 40 years of experience in developing, building, acquiring, and managing high-quality multifamily, office, and retail properties, primarily in the Mid-Atlantic and Southeastern United States [4]. - The company also offers general construction and development services to third-party clients, in addition to developing properties for its own portfolio [4]. - Founded in 1979 by Daniel A. Hoffler, the company has elected to be taxed as a REIT for U.S. federal income tax purposes [4].

Group 1 - The investment approach has received over 500 five-star reviews, indicating high satisfaction among members who are experiencing benefits [1] - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities, particularly in real estate strategies [1] - REITs (VNQ) are highlighted as a preferred investment for generating high passive income and achieving early retirement [1] Group 2 - Jussi Askola leads the High Yield Landlord investing group, providing real-time updates on his REIT portfolio and transactions [2] - The group offers features such as three distinct portfolios (core, retirement, international), buy/sell alerts, and direct access to analysts for inquiries [2] - Jussi Askola is the President of Leonberg Capital, a value-oriented investment firm that consults various investment entities on REIT investing [2]