Armada Hoffler Properties(AHH) - 2025 Q3 - Quarterly Results

Financial Performance - GAAP net loss of $3.6 million, or $0.04 per diluted share, compared to a net loss of $10.4 million, or $0.11 per diluted share, for Q3 2024 [4] - Normalized FFO of $29.6 million, or $0.29 per diluted share, down from $31.4 million, or $0.35 per diluted share, in Q3 2024 [4] - The company's net loss attributable to common stockholders for the three months ended September 30, 2025, was $3,575 thousand, compared to a loss of $10,416 thousand in the same period of 2024, showing an improvement of approximately 65.6% [29] - The company reported a total of $23,264 thousand in operating income for the three months ended September 30, 2025, compared to $24,956 thousand in the same period of 2024, a decline of approximately 6.8% [29] - The company reported a net income of $1,635 for the nine months ended September 30, 2025, compared to $13,458 in the same period of 2024 [35] Revenue and Income - For the three months ended September 30, 2025, total revenues were $96,082 thousand, compared to $187,652 thousand for the same period in 2024, reflecting a decrease of approximately 48.9% [29] - Rental revenues for the nine months ended September 30, 2025, were $197,672 thousand, up from $193,744 thousand in 2024, indicating a growth of about 2.5% [29] - Normalized FFO available to common stockholders for the nine months ended September 30, 2025, was $80,612 thousand, down from $91,056 thousand in 2024, a decrease of about 11.5% [31] - The company’s interest income for the nine months ended September 30, 2025, was $12,534 thousand, down from $13,959 thousand in 2024, a decrease of about 10.2% [29] Occupancy and Leasing - Weighted average stabilized portfolio occupancy at 95.7%, with retail at 96.0%, office at 96.5%, and multifamily at 94.2% [4] - Positive commercial releasing spreads of 6.0% (GAAP) and 6.6% (Cash) with executed 25 commercial lease renewals and 7 new leases totaling approximately 270,000 net rentable square feet [4] - Same Store Net Operating Income (NOI) increased by 1.0% on a GAAP basis compared to Q3 2024 [10] - Retail Same Store NOI on a cash basis for Q3 2025 was $16,200, a decrease of 2.5% from $16,611 in Q3 2024 [35] - Office Same Store NOI on a cash basis increased to $13,443 in Q3 2025, compared to $12,869 in Q3 2024, reflecting a growth of 4.4% [35] - Multifamily Same Store NOI on a cash basis for Q3 2025 was $7,323, a slight decrease from $7,434 in Q3 2024 [35] Debt and Liabilities - As of September 30, 2025, total debt outstanding was $1.5 billion, with 100% fixed or economically hedged debt [11] - The company’s total liabilities as of September 30, 2025, were $1,733,496 thousand, compared to $1,623,194 thousand as of December 31, 2024, indicating an increase of approximately 6.8% [27] - The company's indebtedness, net, increased to $1,485,657 thousand as of September 30, 2025, from $1,295,559 thousand as of December 31, 2024, reflecting an increase of approximately 14.7% [27] - The company entered into a note purchase agreement for $115.0 million of senior unsecured notes with interest rates ranging from 5.57% to 6.09% [10] Cash and Assets - The total assets as of September 30, 2025, were $2,577,135 thousand, an increase from $2,512,863 thousand as of December 31, 2024, representing a growth of about 2.6% [27] - The cash and cash equivalents decreased to $46,511 thousand as of September 30, 2025, from $70,642 thousand as of December 31, 2024, a decrease of about 34.2% [27] Construction and Contracts - Total third-party construction contract backlog of $83.9 million as of September 30, 2025 [8] - Interest income from real estate financing investments was $3.9 million for the three months ended September 30, 2025 [9] Impairments and Expenses - General contracting and real estate services gross profit for Q3 2025 was $2,064, down from $3,366 in Q3 2024 [35] - Interest expense for the nine months ended September 30, 2025, was $62,098, compared to $60,589 in the same period of 2024 [35] - Impairment charges for Q3 2025 were $350, consistent with the same amount in Q3 2024 [35] - GAAP adjustments for Same Store NOI in Q3 2025 totaled $(1,309), compared to $(1,059) in Q3 2024 [35]