Armada Hoffler Properties(US:AHH)2025-05-09 20:14Financial Performance - Net loss attributable to common stockholders and OP Unitholders was $7.2 million, or $0.07 per diluted share, compared to a net income of $14.8 million, or $0.17 per diluted share, for the same period in 2024[164] - Funds from operations (FFO) were $17.2 million, or $0.17 per diluted share, down from $35.0 million, or $0.40 per diluted share, in the prior year[164] - Normalized funds from operations (Normalized FFO) were $25.6 million, or $0.25 per diluted share, compared to $29.4 million, or $0.33 per diluted share, for the same period in 2024[164] - Total revenues for the three months ended March 31, 2025, were $114.6 million, a decrease of $78.8 million or 68.1% compared to $193.5 million in the same period of 2024[1] - Rental revenues increased by $1.9 million or 3.1% to $63.8 million for the three months ended March 31, 2025, compared to $61.9 million in 2024[1] - Total expenses decreased by $72.7 million or 42.7% to $97.5 million for the three months ended March 31, 2025, compared to $170.1 million in 2024[1] - The diluted net loss per share for Q1 2025 was $(0.07), while the diluted net income per share for Q1 2024 was $0.17[253] - The diluted FFO per share for Q1 2025 was $0.17, down from $0.40 in Q1 2024, indicating a decrease of 57.5%[253] - The diluted Normalized FFO per share for Q1 2025 was $0.25, compared to $0.33 in Q1 2024, a decrease of approximately 24.2%[253] Operational Metrics - As of March 31, 2025, weighted average stabilized portfolio occupancy was 95.7%, with retail occupancy at 94.5%, office occupancy at 97.5%, and multifamily occupancy at 95.0%[164] - Positive spreads on lease renewals included 11.0% (GAAP) and 7.4% (Cash) for retail, 23.3% (GAAP) and 3.7% (Cash) for office, and 2.6% (GAAP and Cash) for multifamily[164] - Executed 31 commercial lease renewals and 11 new commercial leases totaling 313,002 net rentable square feet during the first quarter[164] - Office Same Store Net Operating Income (NOI) increased by 9.2% on a GAAP basis compared to the same quarter in 2024[164] - Retail same store rental revenues for the three months ended March 31, 2025 increased by $626,000 or 2.7% to $24.183 million compared to the same period in 2024[170] - Office same store NOI for the three months ended March 31, 2025 increased by $1.3 million or 9.2% to $15.153 million, reflecting strong tenant additions[172] - Multifamily same store NOI for the three months ended March 31, 2025 decreased by $284,000 or 3.2% to $8.689 million, primarily due to increased utility expenses[174] Segment Performance - Retail segment NOI for the three months ended March 31, 2025 decreased by $1.0 million or 5.5% to $17.982 million compared to the same period in 2024, primarily due to property dispositions[167] - Office segment NOI for the three months ended March 31, 2025 increased by $1.7 million or 12.5% to $15.238 million, driven by the addition of new tenants[171] - Multifamily segment NOI for the three months ended March 31, 2025 was $9.020 million, showing a slight increase compared to the same period in 2024[173] - General contracting and real estate services segment revenues for the three months ended March 31, 2025 decreased by $80.361 million to $46.614 million, with a gross profit decline of $2.713 million[175] - Real estate financing segment gross profit for the three months ended March 31, 2025 decreased by $646,000 or 24.2% to $2.022 million, primarily due to decreased interest rates[179] Cash Flow and Investments - Net cash provided by operating activities decreased by $46,379,000 to $107,000 compared to the same period in 2024, primarily due to timing of payments for construction projects[245] - Net cash used in investing activities decreased by $19,458,000 to $(21,488,000) compared to the same period in 2024, attributed to reduced investment in development[246] - Total cash, cash equivalents, and restricted cash at the end of the period was $48,567,000, down from $72,223,000 at the beginning of the period[245] Debt and Financing - As of March 31, 2025, total consolidated indebtedness amounted to $1,321,436,000, with secured debt at $575,436,000 and unsecured debt at $746,000,000[231] - Scheduled principal payments for 2025 are $134,825,000, representing 10% of total indebtedness, while 2026 payments are $360,513,000, accounting for 27%[233] - The company maintains a total leverage ratio of not more than 60%, with a maximum of 65% allowed for specific acquisitions[217][230] - The company has a tangible net worth requirement of at least $825.2 million plus 75% of net equity proceeds received after June 30, 2022[217][230] - The company must maintain a minimum occupancy rate of 80% for all unencumbered properties[217][230] - The company is currently in compliance with all covenants under the Credit Agreement, M&T term loan agreement, and TD term loan agreement[229] Interest Rate Management - The company entered into an interest rate swap agreement with a notional amount of $150.0 million at a SOFR rate of 2.50%[169] - The company held interest rate swap agreements with a total notional amount of $1,335,778,000 as of March 31, 2025, aimed at reducing interest rate exposure[236] Other Financial Information - The company has a $50.0 million share repurchase program, with $37.4 million remaining available for repurchases as of March 31, 2025[10] - The revolving credit facility capacity increased by $105.0 million to $355.0 million, with total credit facility capacity reaching $655.0 million[208] - The M&T term loan facility commitment increased to $350.0 million as of June 14, 2024, due to an existing lender's increased commitment[208] - The TD term loan facility commitment increased to $95.0 million on June 29, 2023, due to the addition of a second lender[225] - The company recorded a $0.4 million credit loss reserve in conjunction with the total unfunded commitments, indicating a remote probability of contingency funding[244] - The company reported a provision for unrealized credit losses of $22,000 in Q1 2025, down from $83,000 in Q1 2024[253] - The company has not reported any material changes to its market risk since December 31, 2024[257]