Armada Hoffler Reports Fourth Quarter 2025 Results

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]