Armada Hoffler Reports First Quarter 2025 Results

Core Insights - Armada Hoffler Properties, Inc. reported a GAAP net loss of $7.2 million, or $0.07 per diluted share, for the first quarter of 2025, a decline from a net income of $14.8 million, or $0.17 per diluted share, in the same period of 2024 [3][5][29] - The company maintained its full-year 2025 Normalized FFO guidance range of $1.00 to $1.10 per diluted share [1][9] Financial Performance - Normalized FFO for the first quarter was $25.6 million, or $0.25 per diluted share, down from $29.4 million, or $0.33 per diluted share, in the first quarter of 2024 [6][29] - Total revenues for the first quarter were $114.6 million, compared to $193.5 million in the same quarter of 2024 [27] - The decrease in FFO and revenues was primarily attributed to a decline in general contracting and real estate services gross profit and unrealized losses on interest rate derivatives [6][27] Operating Metrics - The 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% [3][7] - Office Same Store NOI increased by 9.2% on a GAAP basis compared to the same quarter in 2024 [3][6] - The company executed 31 commercial lease renewals and 11 new commercial leases, totaling approximately 313,000 net rentable square feet [3][6] Construction and Backlog - The third-party construction backlog as of March 31, 2025, was $80.4 million, with general contracting and real estate services gross profit for the first quarter reported at $1.4 million [3][7] Balance Sheet - As of March 31, 2025, total debt outstanding was $1.3 billion, with $166 million under the revolving credit facility [8] - The company's debt was 100% fixed or economically hedged after considering interest rate swaps [8] Outlook - The company provided guidance for full-year 2025, projecting portfolio NOI between $172.2 million and $175.8 million, with construction segment gross profit expected between $4.8 million and $6.8 million [10][9]