AH Realty Trust, Inc. · NYSE:AHRT
AH Realty Trust — Armada Hoffler Properties — Q4 2016 Earnings Presentation
33 slides from AH Realty Trust's earnings presentation, Feb 9, 2017
Slide 1: wiz
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Slide 2: Table of Contents
2 Table of Contents Same Store NOI by Segment Top 10 Tenants by Annualized Base Rent Office Lease Summary Office Lease Expirations Retail Lease Summary Retail Lease Expirations Net Asset Value Component Data Appendix – Definitions & Reconciliations Same Store vs Non-Same Store Properties Reconciliat
Slide 3: Forward Looking Statements
3 Forward Looking Statements This Supplemental Information should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated February 9, 2017, which has been furnished as Exhibit 99.1 to our Form 8-K filed on February 9, 2017. The Compa
Slide 4: Corporate Profile
Analyst Coverage 4 Corporate Profile Armada Hoffler Properties, Inc. (NYSE:AHH) is a full service real estate company that develops, constructs and owns institutional grade office, retail and multifamily properties in the Mid-Atlantic United States. The Company also provides general contracting and
Slide 5: Highlights
5 Highlights • Net income of $5.1 million, or $0.09 per diluted share, for the quarter ended December 31, 2016 compared to net income of $8.4 million, or $0.19 per diluted share, for the quarter ended December 31, 2015. Net income of $42.8 million, or $0.85 per diluted share, for the year ended Dece
Slide 6: Summary Information
6 Summary Information $ in thousands, except per share data Three months ended 12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015 OPERATIONAL METRICS Net income $5,145 $7,946 $3,131 $26,533 $8,443 Net income per diluted share $0.09 $0.15 $0.06 $0.57 $0.19 Rental properties Net Operating Income (NOI
Slide 7: Summary Balance Sheet
7 Summary Balance Sheet $ in thousands 12/31/2016 12/31/2015 Assets (Unaudited) Real estate investments: Income producing property $894,078 $579,000 Held for development 680 1,180 Construction in progress 13,529 53,411 Accumulated depreciation (139,553) (125,380) Net real estate investments 768,734
Slide 8: Summary Income Statement
8 Summary Income Statement Amounts in thousands, except per share data Three months ended Year Ended 12/31/2016 12/31/2015 12/31/2016 12/31/2015 Revenues (Unaudited) (Unaudited) Rental revenues $26,516 $21,771 $99,355 $81,172 General contracting and real estate services 50,475 41,309 159,030 171,268
Slide 9: FFO, Normalized FFO & Adjusted FFO
(1) See definitions on pages 27-28 (2) Excludes gain on non-operating real estate of $430K for the three months ended 3/31/2016 and year ended 12/31/16 (3) Excludes first generation rental space 9 FFO, Normalized FFO & Adjusted FFO(1) $ in thousands, except per share data Three months ended Year End
Slide 10: Outstanding Debt
10 Outstanding Debt $ in thousands 30 Day LIBOR as of 12/31/2016 0.772%(1) Subject to an interest rate swap lock. (2) Includes debt subject to interest rate swap locks. (3) Excludes debt subject to interest rate swap locks. Debt Maturities & Principal Payments Debt Stated Rate Effective Rate as of 1
Slide 11: Core Debt to Core EBITDA
11 Core Debt to Core EBITDA(1) $ in thousands Three months ended 12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015 Net Income $5,145 $7,946 $3,131 $26,533 $8,443 Excluding: Interest expense 4,573 4,124 3,978 3,791 3,411 Income tax 103 16 6 218 (117) Depreciation and amortization 9,692 8,885 8,602
Slide 12: Debt Information
12 Debt Information $ in thousands (1) Excludes debt subject to interest rate swap locks. (2) Includes debt subject to interest rate swap locks. (3) Excludes GAAP adjustments. Fixed-rate& Hedged Debt 97% Total Debt Composition Weighted Average Percent of Debt Interest Rate Maturity Secured vs. Unsec
Slide 13: Capitalization & Financial Ratios
13 Capitalization & Financial Ratios $ in thousands Capitalization as of December 31, 2016 Capital Structure as of December 31, 2016 Debt % of Total Carrying Value Unsecured Credit Facility 20% $107,000 Unsecured Term Loans 19% 100,000 Mortgages Payable 61% 320,082 Total Debt $527,082 Equity % of To
Slide 14: Property Portfolio
14 Property Portfolio As of 12/31/16 (1) The net rentable square footage for each of our retail properties is the sum of (a) the square footage of existing leases, plus (b) for available space, the field verified square footage. (2) Occupancy for each of our retail properties is calculated as (a) sq
Slide 15: Property Portfolio (detail)
Net Rentable Square Feet (RSF)(1) Property Anchor Tenant Location Town Center Unencumbered ABR Year Built Core Properties Development Properties Total Core Occupancy (2) Development Leased(2) ABR (3) ABR per Leased SF(3) Office Properties 4525 Main Street Clark Nexsen, Anthropologie, West Elm Virgin
Slide 16: Development Pipeline
16 Development Pipeline $ in thousands Johns Hopkins Village Lightfoot Marketplace One City Center Point Street Apts. (1) Represents estimates that may change as the development process proceeds (2) First full stabilized quarter (3) AHH earns a preferred return on equity prior to any distributions t
Slide 17: Acquisitions & Dispositions
17 Acquisitions & Dispositions $ in thousands (1) Contractual purchase price (2) Value of OP Units/Stock at issuance (3) Anchor tenant vacated 9/30/16, which would represent a 2.5% Cash Cap Rate ACQUISITIONS Properties Location Square Feet Purchase Price (1) Reinvested 1031 Proceeds $ Value of OP Un
Slide 18: Construction Business Summary
18 Construction Business Summary $ in thousands Gross Profit Summary Q4 2016 Trailing 12 Months Revenue $50,475 $159,030 Expense (49,039) (153,375) Gross Profit $1,436 $5,655 (Unaudited) Location Total Contract Value Work in Place as of 12/31/2016 Backlog Estimated Date of Completion Highlighted Pro
Slide 19: Same Store NOI by Segment
(1) See page 30 for Same Store vs. Non – Same Store Properties 19 Same Store NOI by Segment $ in thousands (Reconciliation to GAAP located in appendix pg. 31) Three months ended Year ended 12/31/2016 12/31/2015 $ Change % Change 12/31/2016 12/31/2015 $ Change % Change Office(1) (Unaudited) (Unaudite
Slide 20: Top Tenants - Annualized Base Rent
20 Top 10 Tenants - Annualized Base Rent $ in thousands As of December 31, 2016 Office Portfolio Tenant Number of Leases Lease Expiration Annualized Base Rent % of Office Portfolio Annualized Base Rent % of Total Portfolio Annualized Base Rent Clark Nexsen 1 2029 $ 2,487 12.6% 2.7% Williams Mullen 1
Slide 21: Office Lease Summary
21 Office Lease Summary 21 Renewal Lease Summary GAAP Cash Quarter Number of Leases Signed Net rentable SF Signed Leases Expiring Net rentable SF Expiring Contractual Rent per SF Prior Rent per SF Releasing Spread Contractual Rent per SF Prior Rent per SF Releasing Spread Weighted Average Lease Term
Slide 22: Office Lease Expirations
22 Office Lease Expirations 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Leased Square Feet % ABR of Office Portfolio Year of Lease Expiration Number of Leases Expiring Square Footage of Leases Expiring (1) % Portfolio Net Rentable Square Fe
Slide 23: Retail Lease Summary
23 Retail Lease Summary (1) Excludes new leases from properties in development Renewal Lease Summary GAAP Cash Quarter Number of Leases Signed Net rentable SF Signed Leases Expiring Net rentable SF Expiring Contractual Rent per SF Prior Rent per SF Releasing Spread Contractual Rent per SF Prior Rent
Slide 24: Retail Lease Expirations
24 Retail Lease Expirations 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% - 100,000 200,000 300,000 400,000 500,000 600,000 Leased Square Feet % ABR of Retail Portfolio Year of Lease Expiration Number of Leases Expiring Square Footage of Leases Expiring (1) % Portfolio Net Rentable Square F
Slide 25: Net Asset Value Component Data
25 Net Asset Value Component Data In thousands (1) Includes leases for space occupied by Armada Hoffler which are eliminated for GAAP purposes Stabilized Portfolio NOI (Cash) Taxable REIT Subsidiary (TRS) Three months ended Annualized Trailing 12 Months 12/31/2016 12/31/2016 12/31/2016 Diversified P
Slide 26: Appendix – Definitions & Reconciliations
Appendix – Definitions & Reconciliations
Slide 27: Definitions
27 Definitions Net Operating Income: We calculate Net Operating Income (“NOI”) as property revenues (base rent, expense reimbursements and other revenue) less property expenses (rental expenses and real estate taxes). Other REITs may use different methodologies for calculating NOI, and accordingly,
Slide 28: Definitions
28 Definitions Normalized Funds From Operations: We calculate Normalized Funds From Operations (“Normalized FFO") as FFO calculated in accordance with the standards established by NAREIT, adjusted for acquisition, development and other pursuit costs, gains or losses from the early extinguishment of
Slide 29: Definitions
Definitions Adjusted EBITDA: We calculate Adjusted EBITDA as net income (loss) (calculated in accordance with GAAP), excluding interest expense, income taxes, depreciation and amortization, gains (or losses) from sales of depreciable operating property and mark-to- market adjustments on interest rat
Slide 30: Same Store vs. Non-Same Store
30 Same Store vs. Non-Same Store Same Store Non-Same Store Same Store Non-Same Store Same Store Non-Same Store Same Store Non-Same Store Retail Properties Retail Properties (Continued) 249 Central Park Retail X X Socastee Commons X X Alexander Pointe X X South Retail X X Bermuda Crossroads X X South
Slide 31: Reconciliation to Property Portfolio NOI
31 Reconciliation to Property Portfolio NOI $ in thousands Three months ended 12/31 Year ended 12/31 2016 2015 2016 2015 Office Same Store(1) Rental revenues $3,805 $3,896 $15,476 $15,565 Property expenses 1,328 1,417 $5,430 5,709 NOI 2,477 2,479 $10,046 9,856 Non-Same Store NOI 652 2,764 $3,323 11,
Slide 32: Reconciliation to Property NOI
32 Reconciliation to Property NOI $ in thousands Three months ended 12/31/2016 Diversified Portfolio Office Retail Multifamily Total NOI - Cash Basis $232 $8,963 $993 $10,188 Net effect of straight-line rents 21 102 2 125 Amortization of lease incentives and (above) below market rents - 195 (13) 182
Slide 33: Reconciliation to GAAP Net Income
33 Reconciliation to GAAP Net Income $ in thousands Office Retail Multifamily Total Property Portfolio General Contracting & Real Estate Services Total Segment revenues 4,832$ 15,026$ 6,658$ 26,516$ 50,475$ 76,991$ Segment expenses 1,703 3,738 2,771 8,212 49,039 57,251 Net operating income 3,129$ 11
Armada Hoffler Properties — Q4 2016 Earnings Presentation on 6ix