Financial Data and Key Metrics Changes - The company reported a net income per share of $0.79, down 2.5% from the prior year [23] - NAREIT FFO per share increased by 0.8% to $1.19, while normalized FFO per share rose 3.4% to $1.22 compared to the prior year [23] - FAD for the quarter increased by 8.1% to $56 million [24] - The company raised its normalized FFO guidance per share by $0.09 to $4.80, representing year-over-year growth of 8.1% [7][31] Business Line Data and Key Metrics Changes - SHOP NOI increased by over 29% year-over-year to $3.8 million [8][17] - The annualized SHOP NOI increased by approximately $8.8 million or 57% following the transition of seven properties from leases to SHOP [7] - SHOP revenues for the six months ended June 30 increased by 5.7% to $28.2 million [25] Market Data and Key Metrics Changes - The company has approximately $130 million in unsigned LOIs expected to close in the next few months, including a SHOP deal valued at approximately $74 million [10] - The incremental pipeline is nearly $350 million, focused entirely on senior housing, with a significant number of SHOP deals [10] Company Strategy and Development Direction - The company aims to expand its SHOP portfolio, believing it offers the highest growth potential with the best risk-adjusted returns [8] - The focus is on driving higher occupancy and improving RevPOR growth, which increased by 3.7% compared to 2024 [9][18] - The company is committed to improving governance and board refreshment, responding to shareholder feedback [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capitalizing on multiple growth opportunities, with a strong balance sheet supporting funding [12] - The company expects double-digit NOI growth for the SHOP segment in 2026 and has adjusted its full-year NOI growth rate to a range of 13% to 16% [18][31] - Management noted some recent softness in occupancy but remains optimistic about reversing this trend [18][52] Other Important Information - The company completed the acquisition of a senior housing portfolio for $63.5 million and closed on a $28 million senior housing construction loan [27] - The company has a liquidity of approximately $760 million, including cash and revolver capacity [29] Q&A Session Summary Question: What is driving the delay in closing some investments? - Management characterized it as a timing issue, with a robust pipeline still in place [36][37] Question: Are there larger portfolio transactions being evaluated? - Management confirmed that larger deals are still being evaluated, but they are focusing on tangible opportunities under $100 million [39][40] Question: How is the relationship with Discovery being managed? - Management stated that Discovery remains a partner, with ongoing NOI growth expected from the portfolio [47] Question: What caused the recent softness in occupancy? - Management attributed it to changes in local leadership and higher than normal move-outs, expecting a return to normal trends [52][53] Question: What is the status of discussions with NHC? - Discussions are ongoing, with improved coverage reported for NHC [66][67]

Financial Data and Key Metrics Changes - Armada Hoffler reported normalized FFO of $0.25 per diluted share, consistent with expectations and guidance [22][23] - Same store NOI increased by 1.4% on a GAAP basis and 0.3% on a cash basis [23] - AFFO came in at $18.4 million or $0.18 per diluted share, reflecting alignment between operating cash flows and restructured dividend [23][27] Business Line Data and Key Metrics Changes - Office occupancy remained high at 96.3% with positive re-leasing spreads of 11.7% [5] - Retail occupancy was reported at 94.2% with renewal spreads of 10.8% [5] - Multifamily occupancy experienced a modest dip to 94%, attributed to seasonal turnover and macroeconomic pressures [17] Market Data and Key Metrics Changes - The retail portfolio successfully backfilled former big box vacancies with higher credit retailers, achieving a weighted average rent increase of 33% [9] - The office portfolio remains essentially full at 96% occupancy, with minimal vacancy and strong demand for remaining space [12][13] - Recent trends indicate a shift in demand from traditional office spaces to amenity-rich environments, with 54% of Fortune 100 companies returning to fully in-office work [14] Company Strategy and Development Direction - The company is focused on transitioning away from reliance on fee income towards higher quality recurring property-level earnings [6][8] - Armada Hoffler aims to enhance its balance sheet and financial flexibility through strategic debt management, including a recent $115 million private placement [8][24] - The company is committed to maintaining a high-performing portfolio and optimizing property-level performance through operational excellence [5][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's ability to deliver consistent NOI growth and reaffirmed full-year guidance [6][28] - The company is well-positioned to benefit from continued execution across its portfolio, particularly in retail leasing and office occupancy [21] - Management acknowledged potential headwinds in the market but emphasized the strength of the balance sheet to mitigate risks [33] Other Important Information - The company is actively evaluating opportunities within its real estate financing platform, including potential acquisitions of high-quality multifamily assets [19][20] - The AFFO payout ratio stands at 77.8%, indicating a disciplined approach to capital allocation [27] Q&A Session Summary Question: Can you provide details on potential scenarios that would lead to achieving the lower or upper end of the guidance range? - Management believes the guidance range is appropriate, with upside potential from the leasing of the Allied asset and slight increases in construction guidance [32][33] Question: What is the expected downtime for the vacated WeWork office floor? - Management indicated that it is early in the process, with some interest in the space, but it is too early to determine the exact timeline for leasing [37][38] Question: What are the cap rate expectations for multifamily asset acquisitions and dispositions? - Management expects cap rates around 6% for multifamily acquisitions and mid-sixes for the disposition of a fully leased asset [40][42] Question: How are you thinking about upcoming maturities of loans? - Management has extended the TD term loan for another twelve months and is exploring options for the Everly loan, with flexibility in the current market [45][46] Question: What is the strategy for potential strategic dispositions over the next six to twelve months? - Management is reviewing assets for potential sales, focusing on opportunities where market dislocation can be leveraged for growth [51][52]

Company Overview - Armada Hoffler (AHH) is a vertically integrated REIT focused on developing, building, acquiring, and managing retail, office, and multifamily properties primarily in the Mid-Atlantic and Southeastern US[3] - The company's weighted average stabilized portfolio occupancy was 949% as of June 30, 2025[6] Financial Performance (Q2 2025) - Second Quarter Normalized FFO per diluted share was $025[6] - Net income attributable to AHH and OP Unitholders was $3907 thousand, or $004 per diluted share[11] - Total revenues reached $101263 thousand, with rental revenues contributing $65147 thousand and general contracting and real estate services revenues at $31976 thousand[13] 2025 Outlook - The company projects a property portfolio NOI between $1736 million and $1760 million[8] - Construction segment profit is expected to be between $50 million and $70 million[8] - Normalized FFO per diluted share is projected to be between $100 and $110[8] Debt and Leverage - Total debt outstanding as of June 30, 2025, was $1448237 thousand[11] - The company's stabilized portfolio debt to stabilized portfolio adjusted EBITDAre was 52x[11] - As of June 30, 2025, 938% of the company's debt was fixed-rate, with a weighted average interest rate of 44%[30, 31, 38]

Core Insights - Healthcare Realty Trust reported a GAAP net loss of $157.9 million, or $0.45 per share, for Q2 2025, compared to a loss of $143.8 million, or $0.39 per share, in Q2 2024 [3][5] - The company achieved NAREIT FFO of $120.4 million, or $0.34 per share, and Normalized FFO of $143.7 million, or $0.41 per share, showing slight improvements year-over-year [3][5] - The company executed 341 new and renewal leases totaling 1.5 million square feet during the quarter, with a 5.1% growth in cash NOI and a 90% occupancy rate [4][5] Financial Performance - The company’s total revenues for Q2 2025 were $297.5 million, slightly down from $298.9 million in Q1 2025 [29] - Property operating expenses were $109.9 million, while general and administrative expenses increased to $23.5 million [29] - The company reported a total asset value of $10.2 billion as of Q2 2025, down from $10.5 billion in Q1 2025 [26] Leasing Activity - The weighted average lease term for new leases was 5.3 years, with an average annual escalator of 3.2% [6] - Health system leasing constituted approximately 33% of the signed lease volume in the quarter [6] - Significant new leases included a 24,000 square foot lease with CLS Health in Houston and a 23,000 square foot lease with UC Irvine Health in California [6] Disposition and Debt Management - The company completed asset sales totaling $182.4 million through nine transactions in Q2 2025, contributing to a year-to-date total of $210.5 million at a blended cap rate of 6.2% [7][8] - The run-rate Net Debt to Adjusted EBITDA ratio improved to 6.0x, with expectations to decrease to between 5.4x and 5.7x by year-end [7][8] - A $1.5 billion revolving credit facility was extended to mature in July 2030, with additional extension options on outstanding term loans [8] Strategic Initiatives - The company announced a series of leadership changes, including the appointment of Peter Scott as President and CEO, and initiated a platform restructuring to enhance operational performance [10][12] - A Strategic Plan was published to outline actions aimed at maximizing shareholder value and improving operational performance [9] - The Board approved a common stock dividend of $0.24 per share, representing a 23% reduction from the previous level [13][14] Guidance - The company increased its Normalized FFO per share guidance to a range of $1.57 to $1.61 and adjusted Same Store Cash NOI growth guidance to 3.25% - 4.00% [15] - The updated guidance reflects the company's outlook on rental rates, occupancy levels, and operating expenses [15]

Financial Data and Key Metrics Changes - Annualized revenue decreased to $398 million, down $85 million or nearly 18% year-over-year [7] - Interest expense increased to $53 million, up $14 million or 37% year-over-year [7] - Normalized FFO for Q2 was $9.4 million or $0.13 per share, compared to $4.4 million or $0.06 per share for the same quarter last year [11] Business Line Data and Key Metrics Changes - Same property occupancy stood at 85.2% as of June 30, 2025 [5] - Executed 15 leases totaling 416,000 square feet with a weighted average lease term of 5.4 years, at rental rates 6.4% higher than prior rates [8] - Concessions and capital commitments declined by 24% quarter-over-quarter to $3.53 per square foot per year [8] Market Data and Key Metrics Changes - Approximately 59% of revenues come from investment-grade rated tenants or their subsidiaries, with the U.S. Government as the largest tenant, representing 17.1% of annualized revenue [6] - 1.3 million square feet of leases are scheduled to expire through 2026, representing $30 million or 7.6% of annualized rental income [9] Company Strategy and Development Direction - The company suspended the quarterly dividend to preserve approximately $3 million of cash annually [8] - Focus on leasing and operating properties while exploring options to address financial commitments and reduce costs [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that financial performance has materially declined due to ongoing leasing challenges in the office sector [6] - For Q3 2025, normalized FFO is expected to be between $0.07 and $0.09 per share, with a projected decrease in same property cash basis NOI of 7% to 9% compared to 2024 [12] Other Important Information - Total liquidity is currently $90 million in cash, with projected cash from operations being a use of $45 million to $55 million during the remainder of 2025 [14] - The company has three properties under agreement to sell for $28.9 million, with expected closings in September 2025 and 2027 [13] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

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]

1Q2025 Supplemental Information FURNISHED AS OF MAY 1, 2025 - UNAUDITED FORWARD LOOKING STATEMENTS & RISK FACTORS This Supplemental Information report contains disclosures that are "forward-looking statements." Forward-looking statements include all statements that do not relate solely to historical or current facts and can be identified by the use of words such as "may," "will," "expect," "believe," "anticipate," "target," "intend," "plan," "estimate," "project," "continue," "should," "could," "budget" and ...

Core Points - Healthcare Realty Trust reported a net loss attributable to common stockholders of $(44.9) million, or $(0.13) per diluted common share for Q1 2025 [1][19] - The company declared a quarterly dividend of $0.31 per share, payable on May 23, 2025 [3] - The company reaffirmed its earnings per share guidance for 2025, with a range of $(0.28) to $(0.20) [4] Leasing - Portfolio leasing activity in Q1 2025 totaled 1,450,000 square feet across 377 leases, including 1,002,000 square feet of renewals and 448,000 square feet of new and expansion leases [5] - The company signed new leases totaling 370,000 square feet in the first quarter [5] Same Store Metrics - Same store occupancy increased to 89.3% as of the end of Q1 2025, up from 89.2% in Q4 2024 [5] - Tenant retention improved to 84.8% in Q1 2025, compared to 81.6% in Q4 2024 [5] Balance Sheet - Total assets decreased to $10.5 billion in Q1 2025 from $10.7 billion in Q4 2024 [14][15] - Total liabilities remained relatively stable at $5.3 billion in Q1 2025, compared to $5.3 billion in Q4 2024 [15] Leadership - Peter A. Scott was appointed as President & CEO effective April 15, 2025, succeeding Connie Moore, who served as Interim President and CEO [5] Dividend - The company will pay a cash dividend of $0.31 per share on May 23, 2025, to Class A common stockholders of record on May 12, 2025 [3] Guidance - The company provided guidance for 2025, with expected earnings per share ranging from $(0.28) to $(0.20) and NAREIT FFO per share between $1.44 and $1.48 [4]

Financial Data and Key Metrics Changes - Cash basis NOI grew by nearly 2% year over year, while normalized FFO increased 43% year over year and 52% sequentially [7][15] - NOI for the quarter was reported at $87,500,000, with cash basis NOI at $83,800,000 and adjusted EBITDAre at $85,300,000, all showing increases year over year and sequentially [16] - Interest expense decreased to $69,800,000, reflecting a reduction in interest rate cap costs [16] Business Line Data and Key Metrics Changes - The company executed over 2,300,000 square feet of total leasing activity with an occupancy rate of 94.6%, reflecting a sequential increase of 20 basis points [7] - The Mainland properties accounted for nearly 80% of renewal activity, with significant leases signed with major tenants [11] - In Hawaii, 492,000 square feet of renewals were signed at rental rates 18.2% higher than prior rents [9] Market Data and Key Metrics Changes - The company is monitoring the evolving landscape surrounding global tariffs, which may impact tenant demand and the overall leasing environment [10] - The leasing pipeline includes 32 deals for more than 7,400,000 square feet, with anticipated roll-ups in rent of 20% on the Mainland and 30% in Hawaii [13] Company Strategy and Development Direction - The company aims to maximize mark-to-market growth opportunities, maintain strong tenant retention, and lease vacancies, particularly in undeveloped land parcels [10] - There is a focus on evaluating opportunities to improve the balance sheet and reduce leverage, potentially through refinancing existing debt and strategic property dispositions [10][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's ability to withstand short-term volatility due to its high-quality assets and diversified tenant roster [10] - The company anticipates that tariffs may positively impact tenant demand, leading to higher tenant retention in the short term [38] Other Important Information - The company reported a strong start to the year with solid financial performance and steady demand for industrial real estate [17] - The company has no debt maturities until 2027, with all debt currently carried at fixed rates [17] Q&A Session Summary Question: Details on bad debt recovery impact - The financial impact from bad debt recovery in the first quarter was around $750,000, which is reflected in revenues [20][21] Question: Insights on leasing timelines - Leasing timelines have elongated, with tenants looking to start renewal processes earlier due to more stakeholders involved in lease decisions [22][23] Question: Status of notable vacancies in Hawaii and Indianapolis - Activity has been seen for the Hawaii property, with proposals out, while the Indianapolis property is actively being marketed with proposals but no finalized leases yet [24][26] Question: Motivation for leverage reduction and property sales - The company is evaluating unsolicited offers for properties, particularly from owner-users, which may lead to higher valuations [28][30] Question: Impact of tariffs on tenant decisions - Tariffs are anticipated to be beneficial for tenant demand, with some tenants opting to stay in place rather than relocate due to concerns about construction costs [37][38] Question: Exposure of Hawaii portfolio to inbound travel - The portfolio's exposure to inbound travel is minimal, as tenants generally serve the local economy rather than relying on tourism [39]