AH Realty Trust, Inc. · NYSE:AHRT
AH Realty Trust — Armada Hoffler Properties — Q2 2021 Earnings Presentation
36 slides from AH Realty Trust's earnings presentation, August 2021
Slide 1: 2Q21 Supplemental Financial Package
2Q21 SUPPLEMENTAL FINANCIAL PACKAGE 1 GREENSIDE APARTMENTS
Slide 2: Table of Contents
TABLE OF CONTENTS 03 Forward-Looking Statements 04 Corporate Profile 05 Highlights 06 2021 Outlook & Assumptions 07 Summary Information 08 Net Asset Value Component Data 09 Summary Balance Sheet 10 Summary Income Statement 11 FFO, Normalized FFO & Adjusted FFO 12 Outstanding Debt 13 Debt Information
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This Supplemental Financial Package should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated August 3, 2021, which has been furnished as Exhibit 99.1 to our Form 8-K filed on August 3, 2021. The Compa
Slide 4: Corporate Profile
CORPORATE PROFILE Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust with four decades of experience developing, building, acquiring and managing high-quality office, retail and multifamily properties located primarily in the Mid-Atlanti
Slide 5: Highlights
HIGHLIGHTS • Net income attributable to common stockholders and OP Unit holders of $5.6 million, or $0.07 per diluted share, compared to $11.2 million, or $0.14 per diluted share, for the three months ended June 30, 2020. • Funds from operations attributable to common stockholders and OP Unit holder
Slide 6: 2021 Outlook & Assumptions
2021 OUTLOOK & ASSUMPTIONS OUTLOOK LOW HIGH TOTAL NOI $122.0M $123.0M CONSTRUCTION SEGMENT GROSS PROFIT $3.7M $4.2M G&A EXPENSES $14.5M $14.8M MEZZANINE INTEREST INCOME $17.8M $18.2M INTEREST EXPENSE(1) $33.2M $33.8M NORMALIZED FFO PER DILUTED SHARE $1.02 $1.06 (1) Includes the interest expense on f
Slide 7: Summary Information
SUMMARY INFORMATION $ IN THOUSANDS, EXCEPT PER SHARE DATA Three months ended OPERATIONAL METRICS 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Net income attributable to common stockholders and OP unitholders $5,568 $3,122 $1,851 $8,651 Net income per diluted share attributable to common stockholders and
Slide 8: Net Asset Value Component Data
NET ASSET VALUE COMPONENT DATA $ IN THOUSANDS Stabilized Portfolio NOI (Cash)(1) Third-Party General Contracting and Real Estate Services Three months ended 6/30/2021 Trailing 12 Months Office(3) Retail Multifamily Total General Contracting Gross Profit $5,465 Stable Portfolio Portfolio NOI (2) $7,2
Slide 9: Summary Balance Sheet
SUMMARY BALANCE SHEET $ IN THOUSANDS As of 6/30/2021 12/31/2020 Assets (Unaudited) Real estate investments: Income producing property $1,756,836 $1,680,943 Held for development 11,294 13,607 Construction in progress 37,167 63,367 Accumulated depreciation (278,010) (253,965) Net real estate investmen
Slide 10: Summary Income Statement
SUMMARY INCOME STATEMENT IN THOUSANDS, EXCEPT PER SHARE DATA Three months ended Six months ended 6/30/2021 6/30/2020 6/30/2021 6/30/2020 Revenues (Unaudited) Rental revenues $47,378 $39,915 $93,119 $82,204 General contracting and real estate services revenues 18,408 57,398 53,971 104,666 Total Reven
Slide 11: FFO, Normalized FFO & AFFO
FFO, NORMALIZED FFO & AFFO(1) IN THOUSANDS, EXCEPT PER SHARE DATA Three months ended (Unaudited) Six months ended (Unaudited) 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2021 6/30/2020 Funds From Operations Net income attributable to AHH and OP unitholders $5,568 $3,122 $1,851 $8,651 $8,690 $19,33
Slide 12: Outstanding Debt
OUTSTANDING DEBT $ IN THOUSANDS Debt Maturities & Principal Payments Effective Rate Outstanding as of Debt Stated Rate as of 6/30/2021 Maturity Date 2021 2022 2023 2024 2025 Thereafter 6/30/2021 Secured Notes Payable - Core Debt Red Mill West 4.23% 4.23% Jun-2022 $235 $10,386 $10,621 Thames Street W
Slide 13: Debt Information
DEBT INFORMATION $ IN THOUSANDS Debt Maturities Interest Rates(4) $300,000 4.0% 4.0% 3.4% 3.5% 3.5% 3.4% 3.2% $250,000 2.7% 3.0% 3.0% 2.6% 3.0% $200,000 2.5% 2.4% 2.5% 2.5% Weighted Average $150,000 2.0% 2.0% 1.5% 1.5% $100,000 1.0% 1.0% $50,000 0.5% 0.5% $0 0.0% 0.0% 2021 2022 2023 2024 2025 Therea
Slide 14: Core Debt to Core EBITDA
CORE DEBT TO CORE EBITDA $ IN THE THOUSANDS SEE APPENDIX FOR CALCULATIONS AND RECONCILIATION Three months ended 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 Net income attributable to common stockholders and OP unitholders $5,568 $3,122 $1,851 $8,651 $11,178 Adjusted EBITDA(1)(2)(4)(5) $31,918
Slide 15: Capitalization & Financial Ratios
CAPITALIZATION & FINANCIAL RATIOS $ IN THOUSANDS AS OF JUNE 30, 2021 Debt Debt % of Total Principal Balance 43% Unsecured credit facility 0% $0 Equity Unsecured term loans 21% 205,000 57% 13% 9% Mortgages payable 79% 758,885 Total debt $963,885 Liquidation Value Preferred Equity Shares Per Share Tot
Slide 16: Property Portfolio
PROPERTY PORTFOLIO AS OF JUNE 30, 2021 Town Unencumbered ABR per Retail Properties- Stabilized Anchor Tenant(s) Location Center ABR Year Built SF(1) Occupancy(2) ABR(3) Leased SF(3) 249 Central Park Retail Cheesecake Factory, Brooks Brothers Virginia Beach, VA ✓ - 2004 92,400 97.9% $2,432,473 $26.90
Slide 17: Property Portfolio Cont.
PROPERTY PORTFOLIO CONT. AS OF JUNE 30, 2021 Office Properties- Stabilized Anchor Tenant(s) Location Town Center Unencumbered ABR Year Built SF(1) Occupancy(2) ABR(3) ABR per Leased SF(3) 4525 Main Street Clark Nexsen, Anthropologie, Mythics Virginia Beach, VA ✓ - 2014 234,938 99.4% $6,972,878 $29.8
Slide 18: Development Pipeline
DEVELOPMENT PIPELINE $ IN THOUSANDS Schedule (1) Property % Leased or Construction Initial Stabilized Estimated Loan Cost to AHH Estimated (1) Anchor Tenants Projects Type LOI Start Occupancy Operation(2) Cost (1) Commitment Date Ownership % Under Development Chronicle Mill 238 units / (3) Multifami
Slide 19: Development Pipeline: Unconsolidated Joint Ventures
DEVELOPMENT PIPELINE(1) UNCONSOLIDATED JOINT-VENTURES- PREDEVELOPMENT: SUBJECT TO CHANGE $ IN THOUSANDS Estimated Construction Initial Stabilized AHH AHH Equity AHH Investment Total Property Type Size Start Occupancy Operation Project Cost Ownership % Requirement To Date Construction Fees T. Rowe Pr
Slide 20: Mezzanine Investments
MEZZANINE INVESTMENTS AS OF JUNE 30, 2021 $ IN THOUSANDS Schedule (1) Property Estimated % Leased Initial Loan Mezzanine (1) Type Size or LOI Occupancy Loan Maturity Interest Rate Balance Interest QTD Outstanding Investments The Interlock Mixed-use 300,000 sf 78% 1Q21 4Q24 15% $90,057 $3,310 Atlanta
Slide 21: Acquisitions & Dispositions
ACQUISITIONS & DISPOSITIONS $ IN THOUSANDS ACQUISITIONS Purchase Cash Cap Purchase Properties Location Square Feet/Units Anchor Tenants Price (1) Rate Date 2021 Overlook Village Asheville, NC 151,365 $28,350 7.7% 3Q21 T.J. Maxx|Homegoods, Ross 2020 Edison Apartments Richmond, VA 174 units 25,700 6.8
Slide 22: Construction Business Summary
CONSTRUCTION BUSINESS SUMMARY $ IN THOUSANDS Total Contract Work in Place as Estimated Date Highlighted Projects Location Value of 6/30/2021 Backlog of Completion 27th Street Garage and Apartments Virginia Beach, VA $82,183 $76,645 $5,538 3Q 2021 Boulders Lakeview Apartments Richmond, VA 37,228 9 37
Slide 23: Same Store NOI by Segment
SAME STORE NOI BY SEGMENT $ IN THOUSANDS (RECONCILIATION TO GAAP LOCATED IN APPENDIX) Three months ended Six months ended 6/30/2021 6/30/2020 $ Change % Change 6/30/2021 6/30/2020 $ Change % Change Summary NOI: Office $6,763 $6,556 $207 3.2% $13,489 $13,228 $261 2.0% Retail 12,150 12,552 (402) -3.2%
Slide 24: Top 10 Tenants by ABR
TOP 10 TENANTS BY ABR(1) $ IN THOUSANDS AS OF JUNE 30, 2021 Office Portfolio(1) Number Lease Annualized Base % of Office Portfolio % of Total Portfolio Tenant of Leases Expiration Rent Annualized Base Rent Annualized Base Rent Morgan Stanley(2) 1 2027 $ 5,703 16.2% 3.6% Clark Nexsen 1 2029 2,692 7.7
Slide 25: Lease Summary
LEASE SUMMARY OFFICE Renewal Lease Summary GAAP Cash Number of Leases Net Rentable Net Rentable Contractual Prior Rent Releasing Contractual Prior Rent Releasing Wtd Average TI & LC Quarter Signed SF Signed Leases Expiring SF Expiring Rent per SF per SF Spread Rent per SF per SF Spread Lease Term (y
Slide 26: Office Lease Expirations
OFFICE LEASE EXPIRATIONS AS OF JUNE 30, 2021 % Portfolio Net % of Portfolio Annualized Base Number of Leases Square Footage of Rentable Square Annualized Base Annualized Base Rent per Leased Year Expiring Leases Expiring(1) Feet Rent (1) Rent Square Foot Available - 46,138 3.5% $ - - $ - M-T-M 4 1,6
Slide 27: Retail Lease Expirations
RETAIL LEASE EXPIRATIONS AS OF JUNE 30, 2021 % Portfolio Net % of Portfolio Annualized Base Number of Leases Square Footage of Rentable Square Annualized Base Annualized Base Rent per Leased Year Expiring Leases Expiring(1) Feet Rent (1) Rent Square Foot Available - 196,693 5.3% - - $ - M-T-M 1 2,40
Slide 28: COVID-19 Deferrals
COVID-19 DEFERRALS(1) AS OF JUNE 30, 2021 $ IN THOUSANDS $5,565 $2,341 $340 $1,183 $1,701 Total Deferral Collected Written Off Abated Outstanding Agreements Balance⁽¹⁾⁽²⁾ (1) Excludes 2 Regal Cinemas leases. 28 (2) Deferrals expected to be collected in 2021 & 2022 are $762 and $421, respectively.
Slide 29: Appendix: Definitions & Reconciliations
APPENDIX DEFINITIONS & RECONCILIATIONS 29 Town Center Virginia Beach, VA
Slide 30: Definitions
DEFINITIONS NET OPERATING INCOME: We calculate Net Operating Income (“NOI”) as property revenues (base rent, expense reimbursements, termination fees and other revenue) less property expenses (rental expenses and real estate taxes). Other REITs may use different methodologies for calculating NOI, an
Slide 31: Definitions
DEFINITIONS ADJUSTED FUNDS FROM OPERATIONS: We calculate Adjusted Funds From Operations (“AFFO”) as Normalized FFO adjusted for the impact of non-cash stock compensation, tenant improvement, leasing commission and leasing incentive costs associated with second generation rental space, capital expend
Slide 32: Definitions
DEFINITIONS SAME STORE PORTFOLIO: We define same store properties as those that we owned and operated and that were stabilized for the entirety of both periods compared. We generally consider a property to be stabilized upon the earlier of: (i) the quarter after the property reaches 80% occupancy or
Slide 33: Same Store vs. Non-Same Store
SAME STORE VS. NON-SAME STORE Three Months Ended Six Months Ended Three Months Ended Six Months Ended 6/30/2021 to 2020 6/30/2021 to 2020 6/30/2021 to 2020 6/30/2021 to 2020 Same Non-Same Same Non-Same Same Non-Same Same Non-Same Store Store Store Store Store Store Store Store Retail Properties Reta
Slide 34: Reconciliation of Adjusted EBITDA, Core EBITDA, and Core Debt
RECONCILIATION OF ADJUSTED EBITDA, CORE E B I T D A , A N D C O R E D E B T (1) $ IN THOUSANDS Three months ended 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 Net income attributable to common stockholders and OP unitholders $5,568 $3,122 $1,851 $8,651 $11,178 Excluding: Depreciation and amort
Slide 35: Reconciliation to Property Portfolio NOI
RECONCILIATION TO PROPERTY PORTFOLIO NOI $ IN THOUSANDS Three months ended 6/30 Six months ended 6/30 2021 2020 2021 2020 Office Same Store(1) Rental revenues $10,290 $9,829 $20,500 $20,021 Property expenses 3,527 3,273 7,011 6,793 NOI 6,763 6,556 13,489 13,228 Non-Same Store NOI (2) 642 419 1,318 2
Slide 36: Reconciliation to GAAP Net Income
RECONCILIATION TO GAAP NET INCOME $ IN THOUSANDS Three months ended 6/30/2021 Total Rental General Contracting & Office Retail Multifamily Properties Real Estate Services Total Segment revenues $ 11,756 $ 19,204 $ 16,418 $ 47,378 $ 18,408 $ 65,786 Segment expenses 4,351 5,193 7,213 16,757 18,131 34,
Armada Hoffler Properties — Q2 2021 Earnings Presentation on 6ix