TABLE OF CONTENTS
- Forward-LookingStatements
- Corporate Profile
- Highlights
- 2020 Outlook & Assumptions
- Summary Information
- Net Asset Value Component Data
- Summary Balance Sheet
- Summary Income Statement
- FFO, Normalized FFO & Adjusted FFO
- Outstanding Debt
- Debt Information
- Core Debt to Core EBITDA
- Capitalization & Financial Ratios
- Property Portfolio
- Development & Redevelopment Pipeline
- Mezzanine Investments
- Acquisitions & Dispositions
- Construction Business Summary
- Same Store NOI by Segment
- Top 10 Tenants by Annualized Base Rent
- Lease Summary
- Office Lease Expirations
- Retail Lease Expirations
- COVID-19Update
- Appendix - Definitions & Reconciliations
- Same Store vs Non-Same Store Properties
- Reconciliation to Core EBITDA
- Reconciliation to Property Portfolio NOI
36 | Reconciliation to GAAP Net Income | 1405 Point |
Baltimore, MD |
F O R W A R D - L O O K I N G S TAT E M E N T S
This Supplemental Financial Package should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated November 5, 2020, which has been furnished as Exhibit 99.1 to our Form 8-K filed on November 5, 2020. The Company makes statements in this Supplemental Financial Package that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act")). These forward-looking statements may include comments relating to the current and future performance of the Company's operating property portfolio, the Company's development pipeline, the Company's construction and development business, including backlog and timing of deliveries and estimated costs, financing activities, and the Company's financial outlook and expectations. For a description of factors that may cause the Company's actual results or performance to differ from its forward- looking statements, please review the information under the heading "Risk Factors" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 and the other documents filed by the Company with the Securities and Exchange Commission from time to time, including the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020. The Company's actual future results and trends may differ materially from expectations depending on a variety of factors discussed in the Company's filings with the SEC. These factors include, without limitation: (a) the impact of the coronavirus (COVID-
- pandemic on macroeconomic conditions and economic conditions in the markets in which the Company operates, including, among others: (i) disruptions in, or a lack of access to, the capital markets or disruptions in the Company's ability to borrow amounts subject to existing construction loan commitments; (ii) adverse impacts to the Company's tenants' and other third parties' businesses and financial conditions that adversely affect the ability and willingness of the Company's tenants and other third parties to satisfy their rent and other obligations to the Company, including deferred rent; (iii) the ability and willingness of the Company's tenants to renew their leases with the Company upon expiration of the leases or to re-lease the Company's properties on the same or better terms in the event of nonrenewal or early termination of existing leases; and (iv) federal, state and local government initiatives to mitigate the impact of the COVID-19 pandemic, including additional restrictions on business activities, shelter-in place orders and other restrictions, and the timing and amount of economic stimulus or other initiatives; (b) the Company's ability to continue construction on development and construction projects, in each case on the timeframes and on terms currently anticipated; (c) the Company's ability to accurately assess and predict the impact of the COVID-19 pandemic on its results of operations, financial condition, dividend policy, acquisition and disposition activities and growth opportunities; and (d) the Company's ability to maintain compliance with the covenants under its existing debt agreements or to obtain modifications to such covenants from the applicable lenders. The Company expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
C O R P O R AT E P RO F I L E | 4 |
Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated,self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high-quality,institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. Founded in 1979 by Daniel A. Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information, visit ArmadaHoffler.com.
BOARD OF DIRECTORS | CORPORATE OFFICERS |
Daniel A. Hoffler, Executive Chairman of the Board | Louis S. Haddad, President and Chief Executive Officer |
Louis S. Haddad, Vice Chairman of the Board | Michael P. O'Hara, Chief Financial Officer |
James C. Cherry, Lead Independent Director | Shawn J. Tibbetts, Chief Operating Officer |
George F. Allen, Independent Director | Eric E. Apperson, President of Construction |
James A. Carroll, Independent Director | Shelly R. Hampton, President of Asset Management |
Eva S. Hardy, Independent Director | |
A. Russell Kirk, Director | |
Dorothy S. McAuliffe, Independent Director | |
John W. Snow, Independent Director |
ANALYST COVERAGE
Bank of America Merrill Lynch | Janney, Montgomery, & Scott LLC | Robert W. Baird & Co. | ||
James Feldman | Robert Stevenson | David Rodgers | ||
(646) 855-5808 | (646) 840-3217 | (216) 737-7341 | ||
james.feldman@bofa.com | robertstevenson@janney.com | drodgers@rwbaird.com | ||
D. A. Davidson & Co. | Raymond James & Associates | |||
Bill Crow | ||||
Barry Oxford | ||||
(727) 567-2594 | ||||
(212) 240-9871 | ||||
bill.crow@raymondjames.com | ||||
boxford@dadco.com | ||||
H I G H L I G H T S | 5 |
- Net income attributable to common stockholders and OP Unit holders of $8.7 million, or $0.11 per diluted share, compared to $9.9 million, or $0.13 per diluted share, for the three months ended September 30, 2019.
- Funds from operations attributable to common stockholders and OP Unit holders ("FFO") of $19.2 million, or $0.24 per diluted share, compared to $21.7 million, or $0.29 per diluted share, for the three months ended September 30, 2019. See "Non-GAAP Financial Measures."
- Normalized funds from operations attributable to common stockholders and OP Unit holders ("Normalized FFO") of $19.0 million, or $0.24 per diluted share, compared to $22.5 million, or $0.30 per diluted share, for the three months ended September 30, 2019.
- Recaptured two prime redevelopment sites - 3 acres in the Town Center of Virginia Beach and nearly 10 acres adjacent to James Madison University in Harrisonburg, Virginia - after terminating leases with Regal Cinemas upon tenant default. Excluding one-time charges of $1.1 million associated with these early terminations, Normalized FFO for the third quarter would have been $0.26 per diluted share.
- Updated 2020 full-year Normalized FFO guidance to $1.10 to $1.12 per diluted share from $1.09 to $1.13 per diluted share.
- Core operating property portfolio occupancy at 95.4% as of September 30, 2020 compared to 93.6% as of June 30, 2020. The Company's September 30, 2020 occupancy includes office at 96.7%, retail at 94.2%, and multifamily at 95.9%.
- Positive releasing spreads on lease renewals during the third quarter of 3.6% on a GAAP basis and 5.1% on a cash basis.
- Collected 96% of portfolio rents for the third quarter, including 100% of office tenant rents, 98% of multifamily tenant rents, and 93% of retail tenant rents. Refer to pages 27-28 of the Supplemental Financial Package for further details.
- Collected 96% of October portfolio rents, including 100% of office tenant rents, 97% of multifamily tenant rents, and 94% of retail tenant rents.
- Announced a new development project, Solis Gainesville, a $52 million 223-unit multifamily project in downtown Gainesville, Georgia.
- Ended the third quarter with $122.7 million of third-party construction backlog.
- Acquired Nexton Square, a 118,000 square foot open air lifestyle center in Summerville, South Carolina in an off-market transaction.
- Acquired partner's 20% ownership interest of the Southern Post project in Roswell, Georgia resulting in 100% ownership of the partnership.
- Raised $86.3 million of net proceeds before offering expenses through an underwritten public offering of 3,600,000 shares of 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock at a public offering price of $24.75 per share.
- Completed the acquisition of the Edison Apartments in downtown Richmond, Virginia in an off-market, OP Unit transaction.
- Completed the off-market acquisition of The Residences at Annapolis Junction, a 416-unit, Class A, LEED Gold certified mid-rise apartment community in Howard County, Maryland.
2020 OUTLOOK & ASSUMPTIONS | 6 | |||
OUTLOOK | LOW | HIGH | ||
Total NOI | $108.2M | $109.6M | ||
Construction Segment Gross Profit | $7.4M | $7.8M | ||
G&A Expenses | $12.7M | $13.3M | ||
Mezzanine Interest Income | $19.8M | $20.2M | ||
Interest Expense | $30.0M | $30.5M | ||
Normalized FFO per diluted share | $1.10 | $1.12 |
G U I D A N C E A S S U M P T I O N S
- Disposition of two unencumbered assets for $8M in cash proceeds at the end of the fourth quarter
- Acquisition of Annapolis Junction and Edison Apartments in the fourth quarter
- An additional $0.5M of potential bad debt write offs for the remainder of 2020
- Interest expense is calculated based on Forward LIBOR Curve, which forecasts rates ending the year at 0.16%
SUMMARY INFORMATION | 7 | ||||||
$ IN THOUSANDS, EXCEPT PER SHARE DATE | |||||||
Three months ended | |||||||
9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | |||
OPERATIONAL METRICS | |||||||
Net income attributable to common stockholders and OP unit holders | $8,651 | $11,178 | $8,160 | $7,215 | $9,869 | ||
Net income attributable to common stockholders and OP unit holders per diluted share | $0.11 | $0.14 | $0.11 | $0.09 | $0.13 | ||
Rental properties Net Operating Income (NOI) | 24,653 | 27,373 | 28,581 | 27,811 | 28,167 | ||
General contracting and real estate services gross profit | 2,108 | 2,056 | 1,718 | 1,058 | 1,192 | ||
Adjusted EBITDA(1) | 27,756 | 29,933 | 33,103 | 30,843 | 31,150 | ||
Funds From Operations (FFO) attributable to common stockholders and OP unit holders | 19,170 | 22,046 | 22,252 | 22,500 | 21,706 | ||
FFO per diluted share attributable to common stockholders and OP unit holders | $0.24 | $0.28 | $0.29 | $0.29 | $0.29 | ||
Normalized FFO attributable to common stockholders and OP unit holders | 19,039 | 22,583 | 24,697 | 22,896 | 22,474 | ||
Normalized FFO per diluted share attributable to common stockholders and OP unit holders | $0.24 | $0.29 | $0.32 | $0.30 | $0.30 | ||
Annualized dividend yield | 4.75% | NA | 8.22% | 4.58% | 4.64% | ||
CAPITALIZATION | |||||||
Common shares outstanding | 57,934 | 57,010 | 56,492 | 56,278 | 54,875 | ||
Operating Partnership units outstanding | 20,523 | 21,273 | 21,273 | 21,273 | 21,167 | ||
Common shares and OP units outstanding | 78,457 | 78,283 | 77,765 | 77,551 | 76,042 | ||
Market price per common share | $9.26 | $9.95 | $10.70 | $18.35 | $18.09 | ||
Common equity capitalization(2) | $726,512 | $778,916 | $832,085 | $1,423,061 | $1,375,600 | ||
Preferred equity capitalization | 171,075 | 63,350 | 63,250 | 63,250 | 63,250 | ||
Total equity capitalization | $897,587 | $842,266 | $895,335 | $1,486,311 | $1,438,850 | ||
Total debt(3) | 885,359 | 956,726 | 1,016,293 | 960,819 | 951,891 | ||
Total capitalization | 1,782,946 | 1,798,992 | 1,911,628 | 2,447,130 | 2,390,741 | ||
Less: cash | (79,224) | (75,111) | (52,788) | (43,579) | (47,606) | ||
Total enterprise value | $1,703,722 | $1,723,881 | $1,858,840 | $2,403,551 | $2,343,135 | ||
BALANCE SHEET METRICS | |||||||
Core debt / enterprise value | 37.5% | 43.2% | 45.0% | 33.6% | 33.4% | ||
Core debt + preferred equity / enterprise value | 47.6% | 46.8% | 48.4% | 36.2% | 36.1% | ||
Fixed charge coverage ratio | 2.3x | 2.9x | 2.8x | 2.5x | 2.7x | ||
Core debt / Annualized core EBITDA | 6.3x | 6.8x | 6.5x | 6.8x | 6.6x | ||
Core debt + preferred equity / Annualized core EBITDA | 8.0x | 7.3x | 7.0x | 7.3x | 7.2x | ||
CORE PORTFOLIO OCCUPANCY | |||||||
Office(4) | 96.7% | 97.0% | 96.6% | 96.6% | 96.6% | ||
Retail(4) | 94.2% (6) | 95.1% | 96.1% | 96.9% | 96.8% | ||
Multifamily(5) | 95.9% | 87.9% | (7) | 93.7% | 95.6% | 95.8% | |
Weighted Average(8) | 95.4% | 93.6% | 95.6% | 96.5% | 96.5% | ||
- See definition on page 31.
- Includes common shares and OP units.
- Excludes GAAP adjustments.
- Office and retail occupancy based on leased square feet as a % of respective total.
- Multifamily and student housing occupancy based on occupied units/beds as a % of total.
- Regal leases which were terminated by the Company subsequent to the quarter are included as occupied in the calculation.
- Includes impact of seasonality related to student housing.
- Total occupancy weighted by annualized base rent.
NET ASSET VALUE COMPONENT DATA 8
$ IN THOUSANDS
Stabilized Portfolio NOI (Cash)(1) | ||||||||
Three months ended 9/30/2020 | ||||||||
Office(2) | Retail | Multifamily | Total | |||||
Stable Portfolio | ||||||||
Portfolio NOI | $6,415 | $11,586 | $6,145 | $24,146 | ||||
Unstabilized Properties NOI | 202 | (229) | (392) | (419) | ||||
Signed Leases Not Yet Occupied or In Free Rent Period | 126 | 981 | 154 | 1,261 | ||||
Net Deferrals and Recoveries | (27) | (124) | 22 | (129) | ||||
Stable Portfolio NOI | $6,716 | $12,214 | $5,929 | $24,859 | ||||
Intra-Quarter Transactions | ||||||||
Net Acquisitons | - | 482 | - | 482 | ||||
Net Dispositions | - | (80) | - | (80) | ||||
Total | $0 | $402 | $0 | $402 | ||||
Annualized | $26,864 | $50,464 | $23,716 | $101,044 |
Third-Party General Contracting and Real Estate Services
Trailing 12 Months | |
General Contracting Gross Profit | $6,940 |
Non-Property Assets(3) | |
As of 9/30/2020 | |
Cash and Retricted Cash | $79,224 |
Accounts Receivable | 26,465 |
Notes Receivable, Including Mezzanine Investments (4) | 168,734 |
Construction receivables, including retentions (4) | 43,507 |
Acquired lease intangible assets, net | 57,958 |
Other Assets | 44,608 |
Total Non-Property Assets | $420,496 |
Liabilities(3)
As of 9/30/2020
Non-Stabilized Portfolio | Mortgages and Notes Payable(4) | $885,359 | |||||||
As of 9/30/2020 | Accounts Payable and Accrued Liabilities | 20,667 | |||||||
Development Cost - See Page 18 | $210,000 | Construction Payables, Including Retentions | 55,825 | ||||||
Cosmopolitan Redevelopment Cost - See Page 18 | 13,000 | Other Liabilities | 64,270 | ||||||
Total Non-Stabilized Portfolio | $223,000 | Total Liabilities | $1,026,121 | ||||||
Management's Estimate of Land Value and Vacancy Opportunities | Preferred Equity | ||||||||
Size | Estimated Land Value(5) | Liquidation Value | |||||||
Columbus Village II Redevelopment Opportunity | Series A Cumulative Redeemable Perpetual Preferred Stock | $171,075 | |||||||
Multifamily | 250 units | $25,000-35,000/unit | |||||||
Retail | 30,000 sf | $20-25/sf | Common Equity | ||||||
Harrisonburg Regal Redevelopment Opportunity | As of 9/30/2020 | ||||||||
Multifamily | 190 units | $20,000-30,000/unit | Total common shares outstanding | 57,934 | |||||
Retail | 50,000 sf | $12-18/sf | Total OP units outstanding | 20,523 | |||||
Total Common Shares & OP Units Outstanding | 78,457 | ||||||||
Size | Rent PSF | ||||||||
Other Vacant Retail with Active Prospects | 90,000 sf | $22-26/sf |
- NOI from non-stabilized portfolio and development pipeline excluded from stabilized portfolio.
- Includes leases for spaces occupied by Armada Hoffler which are eliminated for GAAP purposes.
- Excludes lease right of use assets and lease liabilities.
- Excludes GAAP adjustments.
- Management's assessment of comparable multifamily assets in the applicable market.
SUMMARY BALANCE SHEET | 9 | |||
$ IN THOUSANDS | ||||
As of | ||||
9/30/2020 | 12/31/2019 | |||
Assets | (Unaudited) | |||
Real estate investments: | ||||
Income producing property | $1,531,910 | $1,460,723 | ||
Held for development | 13,607 | 5,000 | ||
Construction in progress | 60,810 | 140,601 | ||
Accumulated depreciation | (241,859) | (224,738) | ||
Net real estate investments | 1,364,468 | 1,381,586 | ||
Real estate investments held for sale | - | 1,460 | ||
Cash and cash equivalents | 73,579 | 39,232 | ||
Restricted cash | 5,645 | 4,347 | ||
Accounts receivable, net | 26,465 | 23,470 | ||
Notes receivable, net | 168,716 | 159,371 | ||
Construction receivables, including retentions, net | 43,324 | 36,361 | ||
Construction contract costs and estimated earnings in excess of billings, net | 215 | 249 | ||
Operating lease right-of-use assets, net | 32,818 | 33,088 | ||
Finance lease right-of-use assets, net | 23,691 | 24,130 | ||
Acquired lease intangible assets, net | 57,958 | 68,702 | ||
Other assets | 44,393 | 32,901 | ||
Total Assets | $1,841,272 | $1,804,897 | ||
Liabilities and Equity | ||||
Indebtedness, net | $886,509 | $950,537 | ||
Accounts payable and accrued liabilities | 20,667 | 17,803 | ||
Construction payables, including retentions | 55,825 | 53,382 | ||
Billings in excess of costs and estimated earnings | 7,085 | 5,306 | ||
Operating lease liabilities | 41,589 | 41,474 | ||
Finance lease liabilities | 17,941 | 17,903 | ||
Other liabilities | 60,219 | 63,045 | ||
Total Liabilities | 1,089,835 | 1,149,450 | ||
Total Equity | 751,437 | 655,447 | ||
Total Liabilities and Equity | $1,841,272 | $1,804,897 | ||
SUMMARY INCOME STATEMENT | 10 | ||||||||
IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||
Three months ended | Nine months ended | ||||||||
9/30/2020 | 9/30/2019 | 9/30/2020 | 9/30/2019 | ||||||
Revenues | (Unaudited) | ||||||||
Rental revenues | $39,636 | $42,220 | $121,840 | $109,507 | |||||
General contracting and real estate services revenues | 58,617 | 27,638 | 163,283 | 66,118 | |||||
Total Revenues | 98,253 | 69,858 | 285,123 | 175,625 | |||||
Expenses | |||||||||
Rental expenses | 10,223 | 9,873 | 27,907 | 24,513 | |||||
Real estate taxes | 4,760 | 4,180 | 13,326 | 10,759 | |||||
General contracting and real estate services expenses | 56,509 | 26,446 | 157,401 | 62,855 | |||||
Depreciation and amortization | 14,176 | 15,465 | 42,232 | 38,874 | |||||
Amortization of right-of-use assets - finance leases | 147 | 145 | 440 | 230 | |||||
General and administrative expenses | 2,601 | 2,977 | 9,382 | 9,329 | |||||
Acquisition, development and other pursuit costs | 26 | 93 | 555 | 550 | |||||
Impairment charges | 47 | - | 205 | - | |||||
Total Expenses | 88,489 | 59,179 | 251,448 | 147,110 | |||||
Gain on real estate dispositions | 3,612 | 4,699 | 6,388 | 4,699 | |||||
Operating Income | 13,376 | 15,378 | 40,063 | 33,214 | |||||
Interest income | 4,417 | 5,710 | 16,055 | 16,622 | |||||
Interest expense on indebtedness | (7,294) | (8,828) | (22,252) | (22,205) | |||||
Interest expense on finance leases | (229) | (228) | (686) | (340) | |||||
Change in fair value of derivatives and other | 318 | (530) | (1,424) | (3,926) | |||||
Equity in income of unconsolidated real estate entities | - | - | - | 273 | |||||
Unrealized credit loss release (provision) | 33 | - | (227) | - | |||||
Other income (expense), net | 177 | 362 | 521 | 426 | |||||
Income before taxes | 10,798 | 11,864 | 32,050 | 24,064 | |||||
Income tax benefit | 28 | 199 | 220 | 339 | |||||
Net Income | $10,826 | $12,063 | $32,270 | $24,403 | |||||
Net income attributable to noncontrolling interest in investment entities | 45 | (960) | 181 | (640) | |||||
Preferred stock dividends | (2,220) | (1,234) | (4,462) | (1,388) | |||||
Net income attributable to AHH and OP Unit holders | $8,651 | $9,869 | $27,989 | $22,375 | |||||
Net income per diluted share and unit attributable to AHH and OP Unit holders | $0.11 | $0.13 | $0.36 | $0.31 | |||||
Weighted Average Shares & Units - Diluted | 78,443 | 74,543 | 78,020 | 71,256 |
FFO, NORMALIZED FFO & AFFO ( 1 ) | 11 | |||||||||
IN THOUSANDS, EXCEPT PER SHARE DATA | ||||||||||
Three months ended (Unaudited) | ||||||||||
9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | ||||||
Funds From Operations | ||||||||||
Net income attributable to AHH and OP unit holders | $8,651 | $11,178 | $8,160 | $7,215 | $9,869 | |||||
Earnings per diluted share | $0.11 | $0.14 | $0.11 | $0.09 | $0.13 | |||||
Depreciation and amortization(2) | 14,131 | 13,644 | 14,092 | 15,285 | 15,057 | |||||
Gains on dispositions of operating real estate(3) | (3,612) | (2,776) | - | - | (3,220) | |||||
FFO | $19,170 | $22,046 | $22,252 | $22,500 | $21,706 | |||||
FFO per diluted share | $0.24 | $0.28 | $0.29 | $0.29 | $0.29 | |||||
Normalized FFO | ||||||||||
Acquisition, development & other pursuit costs | 26 | 502 | 27 | 294 | 93 | |||||
Loss on extinguishment of debt | - | - | - | 30 | - | |||||
Non cash GAAP Adjustments | 161 | 29 | 682 | 399 | 145 | |||||
Change in fair value of interest rate derivatives | (318) | 6 | 1,736 | (327) | 530 | |||||
Normalized FFO | 19,039 | 22,583 | 24,697 | 22,896 | 22,474 | |||||
Normalized FFO per diluted share | $0.24 | $0.29 | $0.32 | $0.30 | $0.30 | |||||
Adjusted FFO | ||||||||||
Non-cash stock compensation | 456 | 421 | 1,030 | 274 | 323 | |||||
Acquisition, development & other pursuit costs | (26) | (502) | (27) | (294) | (93) | |||||
Tenant improvements, leasing commissions, lease incentives (4) | (2,770) | (728) | (1,318) | (1,065) | (2,057) | |||||
Property related capital expenditures | (1,373) | (2,316) | (1,014) | (2,426) | (1,565) | |||||
Adjustment for loan modification and exit fees | (614) | (614) | (2,074) | (1,860) | (1,371) | |||||
Non-cash interest expense(5) | 874 | 673 | 638 | 588 | 425 | |||||
Cash ground rent payment - finance lease | (291) | (241) | (216) | (216) | (207) | |||||
GAAP Adjustments | (684) | (6,295) | (984) | (958) | (1,686) | |||||
AFFO | $14,611 | $12,981 | $20,732 | $16,939 | $16,243 | |||||
AFFO per diluted share | $0.19 | $0.17 | $0.27 | $0.22 | $0.22 | |||||
Weighted Average Common Shares Outstanding | 57,923 | 56,668 | 56,398 | 55,581 | 53,463 | |||||
Weighted Average OP Units Outstanding | 20,520 | 21,273 | 21,273 | 21,181 | 21,080 | |||||
Total Weighted Average Common Shares and OP Units Outstanding | 78,443 | 77,941 | 77,671 | 76,762 | 74,543 | |||||
- See definitions on pages 30-31.
- Adjusted for the depreciation attributable to noncontrolling interests in consolidated investments.
- The adjustment for gain on operating real estate dispositions for the 3 months ended 9/30/2019 excludes the portion of the gain on Lightfoot Marketplace that was allocated to our joint venture partner and excludes the gain on sale of a non-operating land parcel.
- Excludes development, redevelopment, and first-generation space.
- Includes non-cash interest expense relating to indebtedness and interest expense on finance leases.
OUTSTANDING DEBT | 12 | ||||||||||||||||||||||
$ IN THOUSANDS | |||||||||||||||||||||||
Debt Maturities & Principal Payments | |||||||||||||||||||||||
Effective Rate as | Outstanding as of | ||||||||||||||||||||||
Debt | Stated Rate | of 9/30/2020 | Maturity Date | 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | 9/30/2020 | |||||||||||||
Secured Notes Payable - Core Debt | |||||||||||||||||||||||
Hoffler Place | L+3.24% | 3.39% | Jan-2021 | - | $31,197 | $31,197 | |||||||||||||||||
Southgate Square | L+1.60% | 1.75% | Apr-2021 | 220 | 19,682 | 19,902 | |||||||||||||||||
Nexton Square | L+2.25% | 2.40% | Aug-2021 | - | 22,909 | 22,909 | |||||||||||||||||
Encore Apartments | 3.25% | 3.25% | Sep-2021 | 127 | 24,337 | 24,464 | |||||||||||||||||
4525 Main Street | 3.25% | 3.25% | Sep-2021 | 164 | 31,231 | 31,395 | |||||||||||||||||
Red Mill West | 4.23% | 4.23% | Jun-2022 | 113 | 465 | 10,386 | 10,964 | ||||||||||||||||
Thames Street Wharf | L+1.30% | 1.81% | (1) | Jun-2022 | - | - | 70,000 | 70,000 | |||||||||||||||
Marketplace at Hilltop | 4.42% | 4.42% | Oct-2022 | 101 | 414 | 9,706 | 10,221 | ||||||||||||||||
1405 Point | L+2.25% | 2.40% | Jan-2023 | - | 714 | 754 | 51,532 | 53,000 | |||||||||||||||
Socastee Commons | 4.57% | 4.57% | Jan-2023 | 28 | 115 | 120 | 4,223 | 4,486 | |||||||||||||||
Sandbridge Commons(2) | L+1.75% | 1.90% | Jan-2023 | 62 | 257 | 268 | 7,248 | 7,835 | |||||||||||||||
249 Central Park Retail | L+1.60% | 3.85% | (1) | Aug-2023 | 59 | 245 | 260 | 16,092 | 16,656 | ||||||||||||||
Fountain Plaza Retail | L+1.60% | 3.85% | (1) | Aug-2023 | 36 | 147 | 156 | 9,685 | 10,024 | ||||||||||||||
South Retail | L+1.60% | 3.85% | (1) | Aug-2023 | 26 | 107 | 114 | 7,066 | 7,313 | ||||||||||||||
One City Center | L+1.85% | 2.00% | Apr-2024 | 152 | 628 | 659 | 691 | 22,734 | 24,864 | ||||||||||||||
Red Mill Central | 4.80% | 4.80% | Jun-2024 | 44 | 175 | 175 | 175 | 1,837 | 2,406 | ||||||||||||||
Premier Apartments | L+1.55% | 1.70% | Oct-2024 | 34 | 208 | 221 | 234 | 16,053 | 16,750 | ||||||||||||||
Red Mill South | 3.57% | 3.57% | May-2025 | 77 | 315 | 327 | 338 | 351 | 4,502 | 5,910 | |||||||||||||
Brooks Crossing Office | L+1.60% | 1.75% | Jul-2025 | 206 | 831 | 846 | 861 | 876 | 11,897 | 15,517 | |||||||||||||
Market at Mill Creek | L+1.55% | 1.70% | Jul-2025 | 162 | 647 | 647 | 647 | 647 | 11,201 | 13,951 | |||||||||||||
Johns Hopkins Village | L+1.25% | 4.19% | (1) | Aug-2025 | 242 | 988 | 1,031 | 1,075 | 1,116 | 46,649 | 51,101 | ||||||||||||
North Point Center Note 2 | 7.25% | 7.25% | Sep-2025 | 34 | 140 | 151 | 162 | 174 | 1,467 | 2,128 | |||||||||||||
Lexington Square | 4.50% | 4.50% | Sep-2028 | 65 | 268 | 280 | 293 | 306 | 13,293 | 14,505 | |||||||||||||
Red Mill North | 4.73% | 4.73% | Dec-2028 | 26 | 105 | 110 | 116 | 121 | 3,841 | 4,319 | |||||||||||||
Greenside Apartments | 3.17% | 3.17% | Dec-2029 | 176 | 712 | 735 | 759 | 783 | 30,321 | 33,486 | |||||||||||||
Smith's Landing | 4.05% | 4.05% | Jun-2035 | 215 | 880 | 917 | 956 | 994 | 13,584 | 17,546 | |||||||||||||
Liberty Apartments | 5.66% | 5.66% | Nov-2043 | 73 | 304 | 322 | 341 | 361 | 12,549 | 13,950 | |||||||||||||
The Cosmopolitan | 3.35% | 3.35% | Jul-2051 | 201 | 819 | 847 | 876 | 906 | 39,461 | 43,110 | |||||||||||||
Total - Secured Core Debt | 2,643 | 138,840 | 99,032 | 103,370 | 47,259 | 188,765 | 579,909 | ||||||||||||||||
Secured Notes Payable - Development Pipeline | |||||||||||||||||||||||
Summit Place | L+3.24% | 3.39% | Jan-2021 | - | 34,615 | 34,615 | |||||||||||||||||
Wills Wharf | L+2.25% | 2.40% | Jun-2023 | - | - | - | 57,585 | 57,585 | |||||||||||||||
Premier Retail | L+1.55% | 1.70% | Oct-2024 | 17 | 102 | 109 | 115 | 7,907 | 8,250 | ||||||||||||||
Solis Gainesville | L+3.00% | 3.75% | Aug-2024 | ||||||||||||||||||||
Total - Development Pipeline | 17 | 34,717 | 109 | 57,700 | 7,907 | - | 100,450 | ||||||||||||||||
Total Secured Notes Payable | $2,660 | $173,557 | $99,141 | $161,070 | $55,166 | $188,765 | $680,359 | ||||||||||||||||
Unsecured Core Debt | |||||||||||||||||||||||
Senior Unsecured Line of Credit | L+1.30%-1.85% | 1.75% | Jan-2024 | - | - | - | - | - | - | - | |||||||||||||
Senior Unsecured Term Loan | L+1.25%-1.80% | 1.70% | Jan-2025 | - | - | - | - | - | 19,500 | 19,500 | |||||||||||||
Senior Unsecured Term Loan | L+1.25%-1.80% | 2.05% - 4.57% (1) | Jan-2025 | - | - | - | - | - | 185,500 | 185,500 | |||||||||||||
Total - Unsecured Core Debt | - | - | - | - | - | 205,000 | 205,000 | ||||||||||||||||
Total Notes Payable excluding GAAP Adjustments | $2,660 | $173,557 | $99,141 | $161,070 | $55,166 | $393,765 | $885,359 | ||||||||||||||||
GAAP Adjustments | 1,150 | ||||||||||||||||||||||
Total Notes Payable | $886,509 | ||||||||||||||||||||||
- Includes debt subject to interest rate swap locks.
- Loan was extinguished on October 6, 2020.
DEBT INFORMATION
$ IN THOUSANDS
Debt Maturities | |||
$350,000 | 5.0% | ||
$300,000 | |||
4.0% | |||
$250,000 | |||
3.4% | |||
$200,000 | 3.0% | 3.0% | |
2.8% | |||
2.5% | |||
$150,000 | 2.1% | ||
2.0% | |||
$100,000 | |||
1.0% | |||
$50,000 | |||
$0 | 0.0% | ||
2020 | 2021 | 2022 | 2023 | 2024 | Thereafter⁽¹⁾ | |||||||||||||
Debt Maturing | Weighted Average Interest Rate | Interest Rate Cap Agreements | ||||||||||||||||
Total Debt Composition | ||||||||||||||||||
Weighted Average | ||||||||||||||||||
% of Debt | Interest Rate | Maturity | Effective Date | Maturity Date | Strike Rate | |||||||||||||
Secured vs. Unsecured Debt | December 2018 | January 2021 | 2.75% | |||||||||||||||
May 2019 | June 2022 | 2.50% | ||||||||||||||||
Unsecured Debt | 23.2% | 3.1% | 4.3 Yrs | |||||||||||||||
January 2020 | February 2022 | 1.75% | ||||||||||||||||
Secured Debt | 76.8% | 3.0% | 5.4 Yrs | |||||||||||||||
March 2020 | March 2022 | 1.50% | ||||||||||||||||
Variable vs. Fixed-rate Debt | ||||||||||||||||||
July 2020 | July 2023 | 0.50% | ||||||||||||||||
Variable-rate Debt(1) | ||||||||||||||||||
36.8% | 2.4% | 2.3 Yrs | Total Interest Rate Caps | |||||||||||||||
Fixed-rate Debt(2)(3) | 63.2% | 3.4% | 6.8 Yrs | |||||||||||||||
Fixed-rate and Hedged Debt | (2)(3) | 100% | Fixed-rate Debt(2)(3) | |||||||||||||||
Total | 3.0% | 5.1 Yrs | Fixed-rate and Hedged Debt | |||||||||||||||
Total Debt(3) | ||||||||||||||||||
% of Total Debt(3) |
13
Notional
Amount
$50,000 100,000 100,000 100,000 100,000
$450,000
$559,484
$1,009,484
$885,359
100%
- Excludes debt subject to interest rate swap locks.
- Includes debt subject to interest rate swap locks.
- Excludes GAAP adjustments.
CORE DEBT TO CORE EBITDA | 14 |
$ IN THOUSANDS
SEE PAGE 34 FOR CALCULATION AND RECONCILIATION.
Three months ended | |||||||||
9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | |||||
Net income attributable to common stockholders and OP unit holders | $8,651 | $11,178 | $8,160 | $7,215 | $9,869 | ||||
Adjusted EBITDA(1)(2)(4) | $27,756 | $29,933 | $33,103 | $30,843 | $31,150 | ||||
Other adjustments: | |||||||||
Development/Redevelopment | (2,225) | (1,085) | (1,133) | (1,010) | (1,499) | ||||
(Less) Acquisitions/Dispositions completed intra-quarter | (155) | (1,351) | - | - | (226) | ||||
Core EBITDA(4) | $25,376 | $27,497 | $31,970 | $29,833 | $29,425 | ||||
Annualized Core EBITDA | $101,502 | $109,989 | $127,880 | $119,332 | $117,700 | ||||
Total debt(3) | $885,359 | $956,726 | $1,016,293 | $960,819 | $951,891 | ||||
Adjustments to debt: | |||||||||
(Less) Development/Redevelopment | (143,560) | (137,508) | (127,650) | (109,930) | (122,597) | ||||
(Less) Net Acquisitions completed intra-quarter | (22,909) | - | - | - | - | ||||
(Less) Cash & restricted cash | (79,224) | (75,111) | (52,788) | (43,579) | (47,606) | ||||
Core Debt(4) | $639,666 | $744,107 | $835,855 | $807,310 | $781,688 | ||||
Core Debt/Annualized Core EBITDA | 6.3x | 6.8x | 6.5x | 6.8x | 6.6x |
- See reconciliation on page 34.
- Excludes non-recurring items.
- Excludes GAAP Adjustments.
- See Page 31 for definition
CAPITALIZATION & FINANCIAL RATIOS 15
$ IN THOUSANDS AS OF SEPTEMBER 30, 2020
Debt | % of Total | Principal Balance |
Unsecured credit facility | 0% | $0 |
Unsecured term loans | 23% | 205,000 |
Mortgages payable | 77% | 680,359 |
Total debt | $885,359 |
Liquidation Value | ||||
Preferred Equity | Shares | Per Share | Total Liquidation Value | |
6.75% Series A Cumulative Redeemable | 6,843 | $25.00 | $171,075 | |
Perpetual Preferred Stock (NYSE: AHHPrA) | ||||
Common Equity | % of Total | Shares/Units | Stock Price | Market Value |
Common stock (NYSE: AHH) | 74% | 57,934 | $9.26 | $536,469 |
Common units | 26% | 20,523 | $9.26 | 190,043 |
Equity market capitalization | 78,457 | $726,512 |
Debt
Equity | 50% | |
10% | 12% | |
50% | ||
Preferred Equity | Unsecured Credit Facility |
Unsecured Term Loans | |
Common Units | Mortgages Payable 38% |
30% | ||||
Total capitalization | $1,782,946 | |||
Financial Ratios | ||||
Debt Service Coverage Ratio(1) | 2.8x | 10% | ||
Fixed Charge Coverage Ratio(2) | 2.3x | |||
Net Debt to Adjusted EBITDA | 8.0x | |||
Core Debt to Core EBITDA | 6.3x | |||
Core Debt + Preferred Equity to Core EBITDA | 8.0x | |||
Debt/Market Capitalization | 50% | |||
Liquidity | Unencumbered Properties | |||
Cash on hand | $79,224 | % of Total Properties | 56% | |
Availability under credit facility | 125,000 | % of Annualized Base Rent | 38% | |
Availability under construction loans | 52,785 | |||
$257,009 | ||||
- Reflects quarterly Adjusted EBITDA divided by total quarterly interest expense and required principal repayment
- Reflects quarterly Adjusted EBITDA divided by total quarterly interest expense, required principal repayment, and preferred equity dividends
PROPERT Y PORTFOLIO | 16 |
AS OF SEPTEMBER 30, 2020
Net Rentable Square Feet (RSF)(1)
Development/ | Development/ | |||||||||||||||||||||||||
Town | Unencumbered | Redevelopment | Core | Redevelopment | ABR per | |||||||||||||||||||||
Retail Properties | Anchor Tenant(s) | Location | Center | ABR | Year Built | Core Properties | Properties | Total | Occupancy(2) | Leased(2) | ABR(3) | Leased SF(3) | ||||||||||||||
249 Central Park Retail | Cheesecake Factory, Brooks Brothers | Virginia Beach, VA | ✓ | - | 2004 | 92,400 | - | 92,400 | 89.3% | - | $2,135,402 | $25.87 | ||||||||||||||
Apex Entertainment | Apex Entertainment, USI | Virginia Beach, VA | ✓ | 100% | 2002 | - | 103,335 | 103,335 | - | 100.0% | 1,482,137 | 14.34 | ||||||||||||||
Broad Creek Shopping Center(6)(9) | Food Lion, PetSmart | Norfolk, VA | 100% | 1997/2001 | 121,504 | - | 121,504 | 96.7% | - | 2,109,141 | 17.95 | |||||||||||||||
Broadmoor Plaza | Kroger | South Bend, IN | 100% | 1980 | 115,059 | - | 115,059 | 97.5% | - | 1,387,073 | 12.36 | |||||||||||||||
Brooks Crossing Retail | Various Small Shops | Newport News, VA | 100% | 2016 | 18,349 | - | 18,349 | 66.3% | - | 169,740 | 13.95 | |||||||||||||||
Columbus Village(6) | Barnes & Noble, Shake Shack | Virginia Beach, VA | ✓ | 100% | 1980/2013 | 62,362 | - | 62,362 | 91.0% | - | 1,719,906 | 30.30 | ||||||||||||||
Columbus Village II | Regal Cinemas(12), BB&B | Virginia Beach, VA | ✓ | 100% | 1995/1996 | 92,061 | - | 92,061 | 96.7% | - | 1,595,334 | 17.92 | ||||||||||||||
Commerce Street Retail | Yard House | Virginia Beach, VA | ✓ | 100% | 2008 | 19,173 | - | 19,173 | 100.0% | - | 888,673 | 46.35 | ||||||||||||||
Courthouse 7-Eleven | 7-Eleven | Virginia Beach, VA | 100% | 2011 | 3,177 | - | 3,177 | 100.0% | - | 139,311 | 43.85 | |||||||||||||||
Dimmock Square | Best Buy, Old Navy | Colonial Heights, VA | 100% | 1998 | 106,166 | - | 106,166 | 75.3% | - | 1,465,285 | 18.34 | |||||||||||||||
Fountain Plaza Retail | Ruth's Chris, Ann Taylor | Virginia Beach, VA | ✓ | - | 2004 | 35,961 | - | 35,961 | 100.0% | - | 998,614 | 27.77 | ||||||||||||||
Greentree Shopping Center | Various Small Shops | Chesapeake, VA | 100% | 2014 | 15,719 | - | 15,719 | 92.6% | - | 328,536 | 22.57 | |||||||||||||||
Hanbury Village(6) | Harris Teeter | Chesapeake, VA | 100% | 2006/2009 | 101,815 | - | 101,815 | 100.0% | - | 2,107,217 | 20.70 | |||||||||||||||
Harrisonburg Regal | Regal Cinemas(12) | Harrisonburg, VA | 100% | 1999 | 49,000 | - | 49,000 | 100.0% | - | 717,850 | 14.65 | |||||||||||||||
Lexington Square | Lowes Foods | Lexington, SC | - | 2017 | 85,440 | - | 85,440 | 98.3% | - | 1,808,848 | 21.53 | |||||||||||||||
Market at Mill Creek (6) | Lowes Foods | Mt. Pleasant, SC | - | 2018 | 80,319 | - | 80,319 | 97.7% | - | 1,810,527 | 23.06 | |||||||||||||||
Marketplace at Hilltop(6)(9) | Total Wine, Panera, Chic-Fil-A | Virginia Beach, VA | - | 2000/2001 | 116,953 | - | 116,953 | 98.6% | - | 2,621,586 | 22.73 | |||||||||||||||
Nexton Square | Various Small Shops | Summerville, SC | - | 2020 | 127,216 | - | 127,216 | 89.7% | - | 2,960,280 | 25.93 | |||||||||||||||
North Hampton Market | PetSmart, Hobby Lobby | Taylors, SC | 100% | 2004 | 114,935 | - | 114,935 | 93.6% | - | 1,311,368 | 12.19 | |||||||||||||||
North Point Center(6) | Harris Teeter, Home Depot, Costco | Durham, NC | 88% | 1998/2009 | 494,746 | - | 494,746 | 99.1% | - | 3,750,884 | 7.65 | |||||||||||||||
Oakland Marketplace(6) | Kroger | Oakland, TN | 100% | 2004 | 64,538 | - | 64,538 | 100.0% | - | 483,768 | 7.50 | |||||||||||||||
Parkway Centre | Publix | Moultrie, GA | 100% | 2017 | 61,200 | - | 61,200 | 98.0% | - | 814,128 | 13.57 | |||||||||||||||
Parkway Marketplace | Rite Aid | Virginia Beach, VA | 100% | 1998 | 37,804 | - | 37,804 | 94.4% | - | 733,362 | 20.54 | |||||||||||||||
Patterson Place | BB&B, PetSmart, DSW | Durham, NC | 100% | 2004 | 160,942 | - | 160,942 | 81.1% | - | 2,153,162 | 16.50 | |||||||||||||||
Perry Hall Marketplace | Safeway | Perry Hall, MD | 100% | 2001 | 74,256 | - | 74,256 | 100.0% | - | 1,280,535 | 17.24 | |||||||||||||||
Premier Retail | Williams Sonoma, Pottery Barn | Virginia Beach, VA | ✓ | - | 2018 | - | 39,162 | 39,162 | - | 75.6% | 969,014 | 32.73 | ||||||||||||||
Providence Plaza | Cranfill, Sumner & Hartzog, Chipotle | Charlotte, NC | 100% | 2007/2008 | 103,118 | - | 103,118 | 94.7% | - | 2,690,403 | 27.56 | |||||||||||||||
Red Mill Commons(6) | Homegoods, Walgreens | Virginia Beach, VA | 8% | 2000-2005 | 373,808 | - | 373,808 | 89.3% | - | 6,112,108 | 18.31 | |||||||||||||||
Sandbridge Commons(6) | Harris Teeter | Virginia Beach, VA | 100% | (11) | 2015 | 76,650 | - | 76,650 | 98.5% | - | 1,072,632 | 14.21 | ||||||||||||||
Socastee Commons | Bi-Lo(12) | Myrtle Beach, SC | - | 2000/2014 | 57,273 | - | 57,273 | 100.0% | - | 653,270 | 11.41 | |||||||||||||||
Southgate Square | Burlington, PetSmart, Michaels, Conn's | Colonial Heights, VA | - | 1991/2016 | 260,131 | - | 260,131 | 93.0% | - | 3,362,909 | 13.89 | |||||||||||||||
South Retail | lululemon, free people, CPK | Virginia Beach, VA | ✓ | - | 2002 | 38,515 | - | 38,515 | 100.0% | - | 997,051 | 25.89 | ||||||||||||||
South Square | Ross, Petco, Office Depot | Durham, NC | 100% | 1977/2005 | 109,590 | - | 109,590 | 98.1% | - | 1,875,689 | 17.45 | |||||||||||||||
Southshore Shops | Buffalo Wild Wings | Chesterfield, VA | 100% | 2006 | 40,307 | - | 40,307 | 83.1% | - | 697,588 | 20.83 | |||||||||||||||
Studio 56 Retail | Rocket Mortgage | Virginia Beach, VA | ✓ | 100% | 2007 | 11,594 | - | 11,594 | 15.2% | - | 52,860 | 30.00 | ||||||||||||||
Tyre Neck Harris Teeter(6)(9) | Harris Teeter | Portsmouth, VA | 100% | 2011 | 48,859 | - | 48,859 | 100.0% | - | 533,285 | 10.91 | |||||||||||||||
Wendover Village | BB&B(12), T.J. Maxx, Petco | Greensboro, NC | 100% | 2004 | 176,939 | - | 176,939 | 99.4% | - | 3,512,858 | 19.97 | |||||||||||||||
Total / Weighted Avg Retail Portfolio | 59% | 3,547,879 | 142,497 | 3,690,376 | 94.2% | $59,502,334 | $17.13 | |||||||||||||||||||
Square Footage | ||||||||||||||||||||||||||
Properties with Tenants Subject to | Number of | Leased Pursuant to | ||||||||||||||||||||||||
Ground Lease | Ground Leases | Ground Leases | ABR | |||||||||||||||||||||||
Broad Creek Shopping Center | 6 | 23,825 | $649,818 | |||||||||||||||||||||||
Columbus Village | 1 | 3,403 | 200,000 | |||||||||||||||||||||||
Hanbury Village | 2 | 55,586 | 1,082,118 | |||||||||||||||||||||||
Market at Mill Creek | 1 | 7,014 | 63,000 | |||||||||||||||||||||||
Marketplace at Hilltop | 1 | 4,211 | 149,996 | |||||||||||||||||||||||
North Point Center | 4 | 280,556 | 1,146,700 | |||||||||||||||||||||||
Oakland Marketplace | 1 | 45,000 | 186,347 | |||||||||||||||||||||||
Red Mill Commons | 8 | 33,961 | 773,639 | |||||||||||||||||||||||
Sandbridge Commons | 3 | 60,521 | 738,500 | |||||||||||||||||||||||
Tyre Neck Harris Teeter | 1 | 48,859 | 533,285 | |||||||||||||||||||||||
Total / Weighted Avg | 28 | 562,936 | $5,523,403 | |||||||||||||||||||||||
PROPERT Y PORTFOLIO CONT. | 17 | ||||||||||||||||
AS OF SEPTEMBER 30, 2020 | |||||||||||||||||
Net Rentable Square Feet (RSF)(1) | |||||||||||||||||
Town | Core | Development | Development | ||||||||||||||
Office Properties | Anchor Tenant(s) | Location | Center | Unencumbered ABR | Year Built | Properties | Properties | Total | Core Occupancy(2) | Leased(2) | ABR(3) | ABR per Leased SF(3) | |||||
4525 Main Street | Clark Nexsen, Anthropologie, Mythics | Virginia Beach, VA | ✓ | - | 2014 | 234,938 | - | 234,938 | 99.4% | - | $6,952,774 | $29.78 | |||||
Armada Hoffler Tower(4)(5) | AHH, Troutman Sanders, Williams Mullen | Virginia Beach, VA | ✓ | 100% | 2002 | 320,680 | - | 320,680 | 95.1% | - | 8,899,458 | 29.18 | |||||
Brooks Crossing Office | Huntington Ingalls Industries | Newport News, VA | - | 2019 | 98,061 | - | 98,061 | 100.0% | - | 1,850,411 | 18.87 | ||||||
One Columbus(5) | BB&T, HBA | Virginia Beach, VA | ✓ | 100% | 1984 | 128,770 | - | 128,770 | 97.6% | - | 3,193,112 | 25.41 | |||||
One City Center | Duke University, WeWork | Durham, NC | - | 2019 | 151,599 | - | 151,599 | 89.3% | - | 4,187,530 | 30.92 | ||||||
Thames Street Wharf(4) | Morgan Stanley, JHU Medical | Baltimore, MD | - | 2010 | 263,426 | - | 263,426 | 99.4% | - | 7,237,479 | 27.65 | ||||||
Two Columbus | HBA Architects | Virginia Beach, VA | ✓ | 100% | 2009 | 108,459 | - | 108,459 | 95.4% | - | 2,557,899 | 24.72 | |||||
Wills Wharf(9) | Canopy by Hilton, EY | Baltimore, MD | - | 2020 | - | 327,133 | 327,133 | - | 47.2% | 2,726,155 | 17.66 | ||||||
Total / Weighted Average Office Portfolio | 39% | 1,305,933 | 327,133 | 1,633,066 | 96.7% | $37,604,818 | $26.53 | ||||||||||
Units/Beds | |||||||||||||||||
Development/ | Development/ | ||||||||||||||||
Town | Core | Redevelopment | Redevelopment | Monthly Effective Rent | |||||||||||||
Multifamily Properties | Location | Center | Unencumbered AQR | Year Built | Properties | Properties | Total Units | Core Occupancy (2) | Occupancy(2) | AQR (7) | per Occupied Unit | ||||||
1405 Point(8)(9) | Baltimore, MD | - | 2018 | 289 | - | 289 | 92.7% | - | $7,090,006 | $2,205 | |||||||
Encore Apartments | Virginia Beach, VA | ✓ | - | 2014 | 286 | - | 286 | 98.3% | - | 4,793,803 | $1,422 | ||||||
Greenside Apartments | Charlotte, NC | - | 2018 | 225 | - | 225 | 96.0% | - | 4,236,690 | $1,635 | |||||||
Liberty Apartments(8) | Newport News, VA | - | 2013 | 197 | - | 197 | 93.9% | - | 2,866,396 | $1,111 | |||||||
Premier Apartments | Virginia Beach, VA | ✓ | - | 2018 | 131 | - | 131 | 97.7% | - | 2,517,674 | $1,639 | ||||||
Smith's Landing(9) | Blacksburg, VA | - | 2009 | 284 | - | 284 | 100.0% | - | 4,826,763 | $1,416 | |||||||
The Cosmopolitan(8) | Virginia Beach, VA | ✓ | - | 2006 | - | 342 | 342 | - | 95.0% | 6,610,640 | $1,695 | ||||||
Multifamily Total | - | 1,412 | 342 | 1,754 | 98.6% | $32,941,972 | $1,599 | ||||||||||
Hoffler Place(8)(10) | Charleston, SC | - | 2019 | 258 | - | 258 | 98.4% | - | $3,289,136 | $1,079 | |||||||
Johns Hopkins Village(8)(9)(10) | Baltimore, MD | - | 2016 | 568 | - | 568 | 88.2% | - | 7,974,089 | $1,326 | |||||||
Summit Place(10) | Charleston, SC | - | 2020 | - | 357 | 357 | - | 98.0% | 3,605,451 | $858 | |||||||
Student Housing Total | - | 826 | 357 | 1,183 | 91.4% | $14,868,677 | $1,121 | ||||||||||
Total / Weighted Avg Multifamily Portfolio | - | 2,238 | 699 | 2,937 | 95.9% | $47,810,649 | $1,412 |
- The net rentable square footage for each of our retail & office properties is the sum of (a) the square footage of existing leases, plus (b) for available space, management's estimate of net rentable square footage based, in part, on past leases. The net rentable square footage included in office leases is generally consistent with the Building Owners and Managers Association, or BOMA, 1996 measurement guidelines.
- Occupancy for each of our retail & office properties is calculated as (a) square footage under executed leases as of September 30, 2020, divided by (b) net rentable square feet, expressed as a percentage. Occupancy for our multifamily properties is calculated as (a) total units occupied as of September 30, 2020, divided by (b) total units available, as of such date expressed as a percentage.
- For the properties in our retail & office portfolios, annualized base rent, or ABR, is calculated by multiplying (a) monthly base rent (defined as cash base rent, before contractual tenant concessions and abatements, and excluding tenant reimbursements for expenses paid by us) as of September 30, 2020 for in-place leases as of such date by (b) 12, and does not give effect to periodic contractual rent increases or contingent rental revenue (e.g., percentage rent based on tenant sales thresholds). ABR per leased square foot is calculated by dividing (a) ABR by (b) square footage under in-place leases as of September 30, 2020. In the case of triple net or modified gross leases, our calculation of ABR does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses.
- The Company occupied 55,390 square feet at these two properties at an ABR of $1.7M, or $31.30 per leased square foot, which amounts are reflected in this table. The rent paid by us is eliminated in accordance with GAAP in the consolidated financial statements.
- Includes ABR pursuant to a rooftop lease.
- Net rentable square feet at certain of our retail properties includes pad sites leased pursuant to the ground leases in the table on page 16.
- For the properties in our multifamily portfolio, AQR is calculated by multiplying (a) revenue for the quarter ended September 30, 2020 by (b) 4.
- The AQR for Liberty, Cosmopolitan, Johns Hopkins Village, Hoffler Place, and 1405 Point excludes approximately $0.3M, $0.7M, $1.1M, $0.1M and $0.4M, respectively, from ground floor retail leases.
- The Company leases all or a portion of the land underlying this property pursuant to a ground lease.
- Student Housing property that is leased by bed. Monthly effective rent per occupied unit is calculated by dividing total base rental payments for the month ended September 30, 2020 by the number of occupied beds.
- Property was unencumbered as of October 6, 2020.
- The Company has knowledge of an upcoming termination for this tenant. See table on page 28 for additional details.
D E V E LO P M E N T & R E D E V E LO P M E N T P I P E L I N E | 18 | ||||||||||||||||
$ IN THOUSANDS | |||||||||||||||||
Schedule(1) | |||||||||||||||||
Property | Estimated | (1) | % Leased or | Construction | Initial | Stabilized | Estimated | Loan | Cost to | AHH Ownership % | Anchor Tenants | ||||||
Projects | Type | LOI | Start | Occupancy | Operation(2) | Cost(1) | Commitment | Date | |||||||||
Under Development | |||||||||||||||||
Solis Gainesville | Multifamily | 223 units | - | 3Q20 | 2Q22 | 3Q23 | $52,000 | $31,000 | $8,000 | 95% | NA | ||||||
Gainesville, GA | |||||||||||||||||
Total Projects Under Development | $52,000 | $31,000 | $8,000 | ||||||||||||||
Delivered Not Stabilized | |||||||||||||||||
Premier Retail (Town Center Phase VI) | Retail | 39,000 sf | 76% | 4Q16 | 3Q18 | 4Q21 | $18,000 | $8,000 | $16,000 | 100% | Williams-Sonoma, Pottery Barn | ||||||
Virginia Beach, VA | |||||||||||||||||
Summit Place (Meeting Street) | Multifamily | 357 beds | 98% | 3Q17 | 3Q20 | 4Q20 | 56,000 | 35,000 | 56,000 | 90% | NA | ||||||
Charleston, SC | |||||||||||||||||
Wills Wharf | Office | 325,000 sf | 53% | 3Q18 | 2Q20 | 2Q22 | 120,000 | 76,000 | 106,000 | 100% | Canopy by Hilton, EY | ||||||
Baltimore, MD | |||||||||||||||||
Total Projects Delivered Not Stabilized | $194,000 | $119,000 | $178,000 | ||||||||||||||
Predevelopment or On Hold | |||||||||||||||||
Chronicle Mill | 238 units / | (3) | |||||||||||||||
Multifamily | - | TBD | TBD | TBD | TBD | TBD | $5,000 | 85% | NA | ||||||||
Belmont, NC | 10,000 sf | ||||||||||||||||
Southern Post | 138 units / | (4) | |||||||||||||||
Roswell, GA | Mixed-use | 137,000 sf | - | TBD | TBD | TBD | TBD | TBD | 10,000 | 100% | TBD | ||||||
Ten Tryon | Mixed-use | 220,000 sf | 38% | TBD | TBD | TBD | TBD | TBD | 9,000 | (3) | Publix, Fortune 100 office tenant | ||||||
Charlotte, NC | 80% | ||||||||||||||||
$24,000 |
Property | % Leased or | Out of | Construction | Anticipated | Restabilized | Estimated | Cost to Date | Projected | |
Redevelopment | Type | LOI | Service | Start | Completion | Operation(2) | Cost(1) | ROI | |
The Cosmopolitan | Multifamily | 96% | 0 units | 1Q18 | 4Q20 | 4Q20 | $13,000 | $13,000 | 9% |
Virginia Beach, VA | |||||||||
Scope
Renovated 292 units including upgraded finishes, new cabinetry and flooring, energy efficient appliances, and LED lighting; modernize resident clubhouse and business center. Remainder of units to be renovated at a later date.
Apex Entertainment Building | Revitalize 84,000 SF of big box retail space within Town Center | |||||||||||
(Former Dick's Sporting Goods) | Mixed-use | 100% | 84,000 sf | 1Q20 | 4Q20 | 1Q21 | 8,000 | 6,300 | 7% | into a destination entertainment concept for a new to market | ||
Virginia Beach, VA | tenant, Apex Entertainment. | |||||||||||
Total Projects Under Redevelopment | $21,000 | $19,300 | 8% |
Q3 2020 | YTD | |
Capitalized Interest | $534 | $3,222 |
Capitalized Overhead | $409 | $2,051 |
- Represents estimates that may change as the development and redevelopment process proceeds.
- First fully-stabilized quarter. See same store definition on page 32.
- Majority interest in joint venture with preferred return.
- Acquired remaining 20% ownership subsequent to quarter end.
MEZZANINE INVESTMENTS | 19 | ||||||||||||
$ IN THOUSANDS | |||||||||||||
Schedule(1) | |||||||||||||
Principal | |||||||||||||
Property | % Leased | Initial | Mezzanine | Mezzanine | |||||||||
Outstanding Investments | Type | Estimated(1) | or LOI | Occupancy | Loan Maturity | Interest Rate | Financing | Interest QTD | |||||
Solis Apartments at Interlock | Multifamily | 349 units | NA | 4Q20 | 3Q22 | 13% | $23,000 | $847 | |||||
Atlanta, GA | |||||||||||||
The Interlock | Mixed-use | 300,000 sf | 77% | 4Q20 | 3Q22 | 15% | 67,000 | 2,575 | |||||
Atlanta, GA | |||||||||||||
Nexton Square-loan paid off during quarter | 380 | ||||||||||||
Total | $90,000 | $3,802 | |||||||||||
Mezzanine Interest Expense | (659) | ||||||||||||
Net Mezzanine Interest Income | $3,143 | ||||||||||||
9/30/20 | |||||||||||||
Principal | |||||||||||||
Property | % Leased | Financing | |||||||||||
AHH Investment to Acquisitions | Type | Estimated(1) | or LOI | Outstanding | Acquisition Status | ||||||||
Nexton Square-Phase I | Mixed-use | 118,000 sf | 94% | $ | - | Exercised Discounted Purchase Option 9/22/20 | |||||||
Summerville, SC | |||||||||||||
Delray Plaza (Whole Foods)(2) | Retail | 83,000 sf | 100% | 12,000 | Signed LOI to acquire property | ||||||||
Delray Beach, FL | |||||||||||||
The Residences at Annapolis Junction(2) | Multifamily | 416 units | 96% | 36,000 | Acquired 10/30/20 |
Annapolis Junction, MD
The Interlock
Atlanta, GA
- Represents estimates that may change as the development process proceeds
- Stopped GAAP recognition of mezzanine income as of 4/1/20
ACQUISITIONS & DISPOSITIONS | 20 | |||||||||||||||
$ IN THOUSANDS | ||||||||||||||||
ACQUISITIONS | ||||||||||||||||
Reinvested | $ Value of | Cash Cap | ||||||||||||||
Properties | Location | Square Feet | Purchase Price(1) | 1031 Proceeds | OP Units/Stock(2) | Rate | Purchase Date | Anchor Tenants | ||||||||
Edison Apartments | Richmond, VA | 174 units | $25,700 | $ - | $7,600 | 6.8% | 4Q20 | NA | ||||||||
Thames Street Wharf | Baltimore, MD | 263,426 | 101,000 | - | - | 7.1% | 2Q19 | Morgan Stanley, JHU Medical | ||||||||
Red Mill Commons & | Virginia Beach, VA | 488,865 | 105,000 | - | 63,755 | 7.7% | 2Q19 | T.J. Maxx, Homegoods, Total Wine, | ||||||||
Marketplace at Hilltop | Walgreens | |||||||||||||||
Wendover Village III | Greensboro, NC | 5,286 | 2,783 | 2,424 | - | 9.2% | 1Q19 | Verizon | ||||||||
Lexington Square | Lexington, SC | 85,531 | 26,758 | - | 2,769 | 6.7% | 3Q18 | Lowes Foods | ||||||||
Parkway Centre | Moultrie, GA | 61,200 | 11,200 | - | 1,624 | 6.4% | 1Q18 | Publix | ||||||||
Indian Lakes | Virginia Beach, VA | 71,020 | 14,700 | - | - | 7.1% | 1Q18 | Harris Teeter, Wawa | ||||||||
Wendover Village Outparcel | Greensboro, NC | 35,895 | 14,300 | 7,900 | - | 7.7% | 3Q17 | Panera, Rooms to Go Kids | ||||||||
Renaissance Square | Davidson, NC | 80,468 | 17,085 | - | - | 7.1% | 4Q16 | Harris Teeter | ||||||||
Columbus Village II | Virginia Beach, VA | 92,061 | 26,200 | - | 26,200 | 5.6% | 4Q16 | Regal, Bed Bath & Beyond | ||||||||
Southshore Shops | Midlothian, VA | 40,333 | 9,160 | - | 2,475 | 7.8% | 3Q16 | Buffalo Wild Wings | ||||||||
Southgate Square | Colonial Heights, VA | 220,131 | 38,585 | - | 17,485 | 7.3% | 2Q16 | PetSmart, Michael's, Burlington | ||||||||
Retail Portfolio (11 properties) | Mid-Atlantic | 1,082,681 | 170,500 | 87,000 | - | 7.2% | 1Q16 | Harris Teeter, Bed Bath & Beyond | ||||||||
Providence Plaza | Charlotte, NC | 103,118 | 26,200 | 14,000 | - | 7.3% | 3Q15 | Chipotle | ||||||||
Socastee Commons | Myrtle Beach, SC | 57,573 | 8,600 | 3,600 | - | 7.3% | 3Q15 | BiLo | ||||||||
Columbus Village | Virginia Beach, VA | 65,746 | 21,025 | - | 14,025 | 6.4% | 3Q15 | Barnes & Noble | ||||||||
Perry Hall Marketplace & Stone | Maryland | 182,949 | 39,555 | 15,200 | 4,155 | 7.4% | 2Q15 | Safeway & Weis Markets | ||||||||
House Square | ||||||||||||||||
Dimmock Square | Colonial Heights, VA | 106,166 | 19,662 | - | 9,662 | 7.3% | 3Q14 | Old Navy, Best Buy | ||||||||
Total/Weighted Average | 3,042,449/ | $678,013 | $ | 130,124 | $ | 149,750 | 7.2% | |||||||||
174 units | ||||||||||||||||
DISPOSITIONS | ||||||||||||||||
Square | Cash Cap | |||||||||||||||
Properties | Location | Feet/Units | Sale Price | Cash Proceeds | Gain on Sale | Rate | Disposition Date | Anchor Tenants | ||||||||
Hanbury Walgreens | Chesapeake, VA | 14,820 | $7,300 | $7,000 | $3,558 | 6.1% | 3Q20 | Walgreens | ||||||||
Retail Portfolio (7 properties) | Mid-Atlantic | 630,780 | 90,000 | 88,000 | 2,776 | 7.8% | 2Q20 | Harris Teeter, Food Lion, Weis | ||||||||
Markets, Office Max | ||||||||||||||||
Lightfoot Marketplace | Williamsburg, VA | 124,715 | 30,275 | 11,800 | 4,477 | (4) | 5.8% | 3Q19 | Harris Teeter | |||||||
Indian Lakes Wawa | Virginia Beach, VA | 6,047 | 4,400 | 4,400 | - | 5.4% | 2Q18 | Wawa | ||||||||
Commonwealth of VA Buildings | Virginia Beach & Chesapeake, VA | 47,366 | 13,150 | 8,000 | 4,194 | 6.8% | 3Q17 | Commonwealth of VA | ||||||||
Greentree Wawa | Chesapeake, VA | 5,088 | 4,600 | 4,400 | 3,396 | 5.0% | 1Q17 | Wawa | ||||||||
Oyster Point(3) | Newport News, VA | 100,139 | 6,500 | - | 3,793 | 16.4% | 3Q16 | GSA | ||||||||
Non-Core Retail Portfolio | Various | 174,758 | 12,850 | 12,600 | (27) | 7.1% | 2Q16 - 3Q16 | Kroger, Family Dollar | ||||||||
Richmond Tower | Richmond, VA | 206,969 | 78,000 | 77,000 | 26,674 | 7.9% | 1Q16 | Williams Mullen | ||||||||
Oceaneering | Chesapeake, VA | 154,000 | 30,000 | 10,000 | 4,987 | 6.7% | 4Q15 | Oceaneering International | ||||||||
Whetstone Apartments | Durham, NC | 203 units | 35,625 | 17,600 | 7,210 | 5.7% | 2Q15 | NA | ||||||||
Sentara Williamsburg | Williamsburg, VA | 49,200 | 15,450 | 15,200 | 6,197 | 6.3% | 1Q15 | Sentara | ||||||||
Virginia Natural Gas | Virginia Beach, VA | 31,000 | 8,900 | 7,400 | 2,211 | 6.3% | 4Q14 | Virginia Natural Gas | ||||||||
Total/Weighted Average | 1,544,882 sf/ | $337,050 | $263,400 | $69,446 | 7.2% | |||||||||||
203 units |
- Contractual purchase price.
- Value of OP Units/common stock at issuance.
- Anchor tenant vacated 12/31/16, which would represent a 2.5% Cash Cap Rate.
- Includes JV interest in the property.
CONSTRUCTION BUSINESS SUMMARY 21
$ IN THOUSANDS
Total Contract | Work in Place as | Estimated Date | |||||||||
Highlighted Projects | Location | Value | of 9/30/2020 | Backlog | of Completion | ||||||
The Interlock | Atlanta, GA | $95,560 | $81,507 | $14,053 | 4Q 2020 | ||||||
27th Street Garage and Apartments | Virginia Beach, VA | 80,749 | 41,190 | 39,559 | 3Q 2021 | ||||||
Solis Apartments at Interlock | Atlanta, GA | 64,715 | 50,295 | 14,420 | 1Q 2021 | ||||||
Boulders Lakeside Apartments | Chesterfield, VA | 35,717 | 33,529 | 2,188 | 4Q 2020 | ||||||
Holly Springs Apartments | Holly Springs, NC | 34,755 | 6,632 | 28,123 | 3Q 2021 | ||||||
Sub Total | 311,496 | 213,153 | 98,343 | ||||||||
All Other Projects | 293,017 | 268,669 | 24,348 | ||||||||
Total | $604,513 | $481,822 | $122,691 | ||||||||
Gross Profit Summary | |||||||||||
Q3 2020 | Trailing 12 | ||||||||||
Months | |||||||||||
(Unaudited) | |||||||||||
Revenue | $58,617 | $203,024 | |||||||||
Expense | (56,509) | (196,084) | |||||||||
Gross Profit | $2,108 | $6,940 |
The Interlock Atlanta, GA
SAME STORE NOI BY SEGMENT | 22 | ||||||||||||||||
$ IN THOUSANDS (RECONCILIATION TO GAAP LOCATED IN APPENDIX ON PG. 35) | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
9/30/2020 | 9/30/2019 | $ Change | % Change | 9/30/2020 | 9/30/2019 | $ Change | % Change | ||||||||||
Office(1) | (Unaudited) | (Unaudited) | |||||||||||||||
Revenue | $10,232 | $10,283 | ($51) | -0.5% | $15,812 | $16,148 | ($336) | -2.1% | |||||||||
Rental Expenses(2) | 2,361 | 2,598 | (237) | -9.1% | 4,146 | 4,210 | (64) | -1.5% | |||||||||
Real Estate Taxes | 1,287 | 1,141 | 146 | 12.8% | 1,664 | 1,588 | 76 | 4.8% | |||||||||
Net Operating Income | $6,584 | $6,544 | $40 | 0.6% | $10,002 | $10,350 | ($348) | -3.4% | |||||||||
Retail(1) | |||||||||||||||||
Revenue | $14,530 | $16,686 | ($2,156) | -12.9% | $36,656 | $39,019 | ($2,363) | -6.1% | |||||||||
Rental Expenses(2) | 2,206 | 2,273 | (67) | -2.9% | 4,977 | 5,337 | (360) | -6.7% | |||||||||
Real Estate Taxes | 1,724 | 1,784 | (60) | -3.4% | 4,254 | 4,113 | 141 | 3.4% | |||||||||
Net Operating Income | $10,600 | $12,629 | ($2,029) | -16.1% | $27,425 | $29,569 | ($2,144) | -7.3% | |||||||||
Multifamily(1) | |||||||||||||||||
Revenue | $9,152 | $8,836 | $316 | 3.6% | $16,157 | $16,299 | ($142) | -0.9% | |||||||||
Rental Expenses(2) | 3,108 | 3,053 | 55 | 1.8% | 5,198 | 5,245 | (47) | -0.9% | |||||||||
Real Estate Taxes | 967 | 574 | 393 | 68.5% | 1,468 | 1,167 | 301 | 25.8% | |||||||||
Net Operating Income | $5,077 | $5,209 | ($132) | -2.5% | $9,491 | $9,887 | ($396) | -4.0% | |||||||||
Same Store Net Operating Income (NOI) | $22,261 | $24,382 | ($2,121) | -8.7% | $46,918 | $49,806 | ($2,888) | -5.8% | |||||||||
GAAP Adjustments | (261) | (1,221) | 960 | (2,159) | (1,492) | (667) | |||||||||||
Same store portfolio NOI, cash basis | |||||||||||||||||
excluding nine months ended $2.2M of deferred rent | $22,000 | $23,161 | ($1,161) | -5.0% | $44,759 | $48,314 | ($3,555) | -7.4% | |||||||||
NOI, Cash Basis | |||||||||||||||||
Office | $6,298 | $5,896 | $402 | 6.8% | $9,922 | $9,486 | $436 | 4.6% | |||||||||
Retail | 10,906 | 12,231 | (1,325) | -10.8% | 25,536 | 29,222 | (3,686) | -12.6% | |||||||||
Multifamily | 4,796 | 5,034 | (238) | -4.7% | 9,301 | 9,606 | (305) | -3.2% | |||||||||
$22,000 | $23,161 | ($1,161) | -5.0% | $44,759 | $48,314 | ($3,555) | -7.4% | ||||||||||
NOI: | |||||||||||||||||
Office | $6,584 | $6,544 | $40 | 0.6% | $10,002 | $10,350 | ($348) | -3.4% | |||||||||
Retail | 10,600 | 12,629 | (2,029) | -16.1% | 27,425 | 29,569 | (2,144) | -7.3% | |||||||||
Multifamily | 5,077 | 5,209 | (132) | -2.5% | 9,491 | 9,887 | (396) | -4.0% | |||||||||
$22,261 | $24,382 | ($2,121) | -8.7% | $46,918 | $49,806 | ($2,888) | -5.8% | ||||||||||
- See page 33 for Same Store vs. Non - Same Store Properties.
- Excludes expenses associated with the Company's in-house asset management division of $0.5M and $0.5M for the 3 months ended 9/30/2020 & 9/30/2019, respectively, and $1.0M and $1.2M for the months ended 9/30/20 & 9/30/19, respectively.
TOP 10 TENANTS BY ABR ( 1 ) | 23 | |||||||||||||||
$ IN THOUSANDS AS OF SEPTEMBER 30, 2020 | ||||||||||||||||
Office Portfolio | ||||||||||||||||
Number | Lease | Annualized Base | % of Office Portfolio | % of Total Portfolio | ||||||||||||
Tenant | of Leases | Expiration | Rent | Annualized Base Rent | Annualized Base Rent | |||||||||||
Morgan Stanley | 2 | 2023 | ; 2027 | $ 5,879 | 15.6% | 4.1% | ||||||||||
Clark Nexsen | 1 | 2029 | 2,692 | 7.2% | 1.9% | |||||||||||
WeWork | 1 | 2034 | 2,010 | 5.3% | 1.4% | |||||||||||
Duke University | 1 | 2029 | 1,579 | 4.2% | 1.1% | |||||||||||
Huntington Ingalls | 1 | 2029 | 1,544 | 4.1% | 1.1% | |||||||||||
Mythics | 1 | 2030 | 1,211 | 3.2% | 0.8% | |||||||||||
Johns Hopkins Medicine | 1 | 2023 | 1,149 | 3.1% | 0.8% | |||||||||||
Pender & Coward | 1 | 2030 | 926 | 2.5% | 0.6% | |||||||||||
Kimley-Horn | 1 | 2027 | 912 | 2.4% | 0.6% | |||||||||||
Troutman Sanders | 1 | 2025 | 889 | 2.4% | 0.6% | |||||||||||
Top 10 Total | $ 18,791 | 50.0% | 13.0% | |||||||||||||
Retail Portfolio(2) | ||||||||||||||||
Number | Lease | Annualized Base | % of Retail Portfolio | % of Total Portfolio | ||||||||||||
Tenant | of Leases | Expiration | Rent | Annualized Base Rent | Annualized Base Rent | |||||||||||
Harris Teeter/Kroger | 6 | 2020 | - 2035 | $ 3,476 | 5.8% | 2.4% | ||||||||||
Lowes Foods | 2 | 2037 | ; 2039 | 1,976 | 3.3% | 1.4% | ||||||||||
PetSmart | 5 | 2022 | - 2025 | 1,461 | 2.5% | 1.0% | ||||||||||
Apex Entertainment | 1 | 2035 | 1,050 | 1.8% | 0.7% | |||||||||||
Bed, Bath, & Beyond | 2 | 2022 | ; 2025 | 1,047 | 1.8% | 0.7% | ||||||||||
Petco | 4 | 2022 | - 2030 | 892 | 1.5% | 0.6% | ||||||||||
Total Wine & More | 2 | 2024 | ; 2027 | 765 | 1.3% | 0.5% | ||||||||||
Ross Dress for Less | 2 | 2025 | ; 2027 | 762 | 1.3% | 0.5% | ||||||||||
TJ Maxx/HomeGoods | 3 | 2022 | - 2025 | 748 | 1.3% | 0.5% | ||||||||||
Safeway | 1 | 2026 | 718 | 1.2% | 0.5% | |||||||||||
Top 10 Total | $ 12,895 | 21.8% | 8.8% | |||||||||||||
- Includes leases at redevelopment properties that have been delivered, but not stabilized.
- Tenants with known terminations (see table on page 28) have been removed.
LEASE SUMMARY | 24 | |||||||||||||||||||||
O F F I C E | ||||||||||||||||||||||
Renewal Lease Summary | GAAP | Cash | ||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||||
Leases | Net Rentable SF | Leases | Net Rentable | Contractual | Prior Rent | Releasing | Contractual | Prior Rent | Releasing | Average Lease | TI & LC | |||||||||||
Quarter | Signed | Signed | Expiring | SF Expiring | Rent per SF | per SF | Spread | Rent per SF | per SF | Spread | Term (yrs) | TI & LC | per SF | |||||||||
Q3 2020 | - | - | 1 | 13,316 | $0.00 | $0.00 | 0.0% | $0.00 | $0.00 | 0.0% | - | - | - | |||||||||
Q2 2020 | 3 | 11,529 | 1 | 1,485 | 33.09 | 30.47 | 8.6% | 33.72 | 32.20 | 4.7% | 5.00 | 70,249 | 6.09 | |||||||||
Q1 2020 | 1 | 17,194 | 4 | 7,373 | 32.77 | 30.32 | 8.1% | 29.75 | 31.40 | -5.3% | 8.00 | 1,004,346 | 58.41 | |||||||||
Q4 2019 | 2 | 8,147 | 1 | 3,929 | 25.43 | 24.23 | 4.9% | 24.74 | 25.69 | -3.7% | 4.06 | 64,668 | 7.94 | |||||||||
New Lease Summary(1) | ||||||||||||||||||||||
Number of | Cash | Weighted | ||||||||||||||||||||
Leases | Net Rentable SF | Contractual | Average | TI & LC | ||||||||||||||||||
Quarter | Signed | Signed | Rent per SF | Lease Term | TI & LC | per SF | ||||||||||||||||
Q3 2020 | 2 | 8,984 | $24.98 | 6.59 | $525,540 | $58.50 | ||||||||||||||||
Q2 2020 | - | - | - | - | - | - | ||||||||||||||||
Q1 2020 | 1 | 3,186 | 26.50 | 5.00 | 112,578 | 35.34 | ||||||||||||||||
Q4 2019 | 1 | 2,363 | 23.75 | 6.00 | 138,300 | 58.53 | ||||||||||||||||
R E T A I L | ||||||||||||||||||||||
Renewal Lease Summary | GAAP | Cash | ||||||||||||||||||||
Number of | Net | Weighted | ||||||||||||||||||||
Leases | Rentable SF | Net Rentable SF | Contractual | Prior Rent per | Releasing | Contractual | Prior Rent | Releasing | Average Lease | TI & LC | ||||||||||||
Quarter | Signed | Signed | Leases Expiring | Expiring | Rent per SF | SF | Spread | Rent per SF | per SF | Spread | Term (yrs) | TI & LC | per SF | |||||||||
Q3 2020 | 16 | 138,355 | 7 | 32,336 | 16.92 | 16.33 | 3.6% | $17.40 | $16.55 | 5.1% | 4.92 | $98,170 | $0.71 | |||||||||
Q2 2020 | 14 | 42,605 | 8 | 19,153 | 22.15 | 20.57 | 7.7% | 22.10 | 20.95 | 5.5% | 4.39 | 41,889 | 0.98 | |||||||||
Q1 2020 | 3 | 35,767 | 16 | 158,218 | 13.11 | 12.98 | 1.0% | 13.15 | 13.00 | 1.1% | 4.81 | 74,321 | 2.08 | |||||||||
Q4 2019 | 23 | 110,368 | 14 | 34,291 | 17.94 | 16.79 | 6.9% | 17.87 | 17.15 | 4.2% | 5.25 | 202,576 | 1.84 | |||||||||
New Lease Summary(1) | ||||||||||||||||||||||
Number of | Net | Cash | Weighted | |||||||||||||||||||
Leases | Rentable SF | Contractual | Average Lease | TI & LC | ||||||||||||||||||
Quarter | Signed | Signed | Rent per SF | Term (yrs) | TI & LC | per SF | ||||||||||||||||
Q3 2020 | 4 | 8,425 | $18.73 | 5.03 | $87,499 | $10.39 | ||||||||||||||||
Q2 2020 | 1 | 1,440 | 18.00 | 5.33 | 5,505 | 3.82 | ||||||||||||||||
Q1 2020 | 7 | 13,073 | 18.33 | 5.24 | 184,426 | 14.11 | ||||||||||||||||
Q4 2019 | 12 | 72,921 | 17.50 | 10.02 | 3,207,564 | 43.99 |
- Excludes leases from properties in development.
OFFICE LEASE EXPIRATIONS | 25 | |||||||||||||
AS OF SEPTEMBER 30, 2020 | ||||||||||||||
% 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 | - | 43,057 | 3.3% | $ | - | - | $ | - | ||||||
M-T-M | 2 | - | - | 2,400 | - | - | ||||||||
2020 | 4 | 3,657 | 0.3% | 109,249 | 0.3% | 29.87 | ||||||||
2021 | 13 | 49,309 | 3.8% | 1,379,195 | 4.0% | 27.97 | ||||||||
2022 | 9 | 47,077 | 3.6% | 1,279,570 | 3.7% | 27.18 | ||||||||
2023 | 12 | 103,647 | 7.9% | 2,764,437 | 7.9% | 26.67 | ||||||||
2024 | 10 | 134,075 | 10.3% | 3,287,068 | 9.4% | 24.52 | ||||||||
2025 | 18 | 142,117 | 10.9% | 4,206,527 | 12.1% | 29.60 | ||||||||
2026 | 9 | 45,214 | 3.5% | 1,132,901 | 3.2% | 25.06 | ||||||||
2027 | 5 | 254,819 | 19.5% | 7,355,848 | 21.1% | 28.87 | ||||||||
2028 | 7 | 69,036 | 5.3% | 2,001,502 | 5.7% | 28.99 | ||||||||
2029 | 7 | 242,709 | 18.6% | 6,265,518 | 18.0% | 25.81 | ||||||||
2030 | 6 | 107,801 | 8.3% | 3,046,801 | 8.7% | 28.26 | ||||||||
Thereafter | 2 | 63,415 | 4.7% | 2,047,646 | 5.9% | 32.29 | ||||||||
Total / Weighted Average | 104 | 1,305,933 | 100.0% | $ | 34,878,662 | 100.0% | $ | 27.62 |
300,000 | 25.0% | Square Feet | % of Portfolio |
250,000 | 20.0% | Under Lease | ABR |
2,500 or less | 3% | ||
200,000 | |||
15.0% | 2,501-10,000 | 14% | |
150,000 | |||
10,001-20,000 | 16% | ||
10.0% | |||
100,000 | 20,001-40,000 | 21% | |
50,000 | 5.0% | 40,001-100,000 | 30% |
- | 0.0% | Greater than 100,000 | 16% |
Office Portfolio Total | 100% | ||
Leased Square Feet | % ABR of Office Portfolio |
(1) Excludes leases from properties in development and delivered, not yet stabilized.
RETAIL LEASE EXPIRATIONS | 26 | |||||||||||||
AS OF SEPTEMBER 30, 2020 | ||||||||||||||
% 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 | - | 206,920 | 5.7% | $ | - | - | $ | - | ||||||
M-T-M | 1 | 1,400 | - | 25,550 | - | 18.25 | ||||||||
2020 | 15 | 204,290 | 5.6% | 3,039,455 | 5.2% | 14.88 | ||||||||
2021 | 65 | 287,458 | 7.9% | 5,032,353 | 8.6% | 17.51 | ||||||||
2022 | 75 | 334,540 | 9.2% | 5,488,115 | 9.4% | 16.40 | ||||||||
2023 | 65 | 432,320 | 11.8% | 6,942,875 | 11.9% | 16.06 | ||||||||
2024 | 74 | 317,985 | 8.7% | 6,106,181 | 10.4% | 19.20 | ||||||||
2025 | 85 | 586,283 | 16.1% | 8,220,447 | 14.0% | 14.02 | ||||||||
2026 | 39 | 270,117 | 7.4% | 5,212,918 | 8.9% | 19.30 | ||||||||
2027 | 24 | 153,482 | 4.2% | 3,241,593 | 5.5% | 21.12 | ||||||||
2028 | 22 | 98,282 | 2.7% | 1,561,712 | 2.7% | 15.89 | ||||||||
2029 | 25 | 108,074 | 3.0% | 2,285,233 | 3.9% | 21.15 | ||||||||
2030 | 24 | 135,702 | 3.7% | 3,096,964 | 5.3% | 22.82 | ||||||||
Thereafter | 23 | 514,361 | 14.0% | 8,279,921 | 14.2% | 16.10 | ||||||||
Total / Weighted Average | 537 | 3,651,214 | 100.0% | $ | 58,533,317 | 100.0% | $ | 16.99 | ||||||
700,000 | 16.0% |
600,000 | 14.0% |
500,000 | 12.0% |
400,000 | 10.0% |
8.0% | |
300,000 | 6.0% |
200,000 | 4.0% |
100,000 | 2.0% |
- | 0.0% |
Square Feet | |
Under Lease | % of Portfolio ABR |
2,500 or less | 15% |
2,501-10,000 | 33% |
10,001-20,000 | 14% |
20,001-40,000 | 15% |
40,001-100,000 | 22% |
Greater than 100,000 | 1% |
Retail Portfolio Total | 100% |
Leased Square Feet | % ABR of Retail Portfolio | |||
(1) Excludes leases from properties in development and delivered, not yet stabilized.
C OV I D - 19 OVERALL COLLECTIONS ( 2 ) 27
AS OF OCTOBER 27, 2020 $ in Thousands
COLLECTIONS BY SECTOR | |||||||||
OFFICE | MULTIFAMILY | RETAIL | TOTAL | ||||||
Period | $ | % | $ | % | $ | % | $ | % | |
2Q20(3) | $ | 9,811 | 100% | $10,527 | 99% | $12,030 | 72% | $32,368 | 87% |
3Q20 | $ | 9,895 | 100% | $12,187 | 98% | $15,259 | 93% | $37,341 | 96% |
October(1) | $ | 3,349 | 100% | $ 4,215 | 97% | $ 5,190 | 94% | $12,754 | 96% |
3 Q 2 0
C O L L E C T I O N S ( 4 )
96%2%
2%
Collected
Outstanding
3 Q 2 0 T O P 2 0
C O L L E C T I O N S ( 1 ) ( 4 )
99%
1%
- Excludes 2 Regal leases which were terminated subsequent to 9/30/20.
- Data reported relates to rent charges and collections through 10/27/20 and does not correspond to the reporting segment classification of the properties as a whole.
- Data from second quarter supplemental package.
- As a percentage of 3Q20 rent and recovery charges due.
C OV I D - 19 EFFECT | 28 | |||||||||||||
AS OF OCTOBER 27, 2020 | ||||||||||||||
$ in Thousands | ||||||||||||||
S I G N I F I C A N T K N O W N T E R M I N A T I O N S | ||||||||||||||
Effective | ABR per | D E F E R R E D R E N T | ||||||||||||
Tenant | Property | Date | SF Impact | ABR Impact | Leased SF | |||||||||
Bed, Bath, & Beyond | North Point Center | 1/31/2021 | 30,000 | $300,000 | $10.00 | Deferred Rent | Repayment Period | |||||||
Bed, Bath, & Beyond | Wendover Village | 1/31/2021 | 33,696 | 404,352 | 12.00 | |||||||||
Outstanding(1) | ||||||||||||||
Regal Cinemas(A) | Columbus Village II | 10/20/2020 | 51,545 | 995,334 | 19.31 | YTG 2020 | 2021 | 2022 | ||||||
Regal Cinemas(A) | Harrisonburg Regal | 10/25/2020 | 49,000 | 717,850 | 14.65 | |||||||||
$2,500 | $700 | $1,700 | $100 | |||||||||||
Bi-Lo(A) | Socastee Commons | 1/31/2021 | 46,673 | 492,400 | 10.55 | |||||||||
Total / Weighted Avg | 210,914 | $2,909,936 | $13.80 | |||||||||||
Proforma Retail 3Q20 Occupancy Assuming Vacancy of Known Terminations | 88.3% | |||||||||||||
Proforma Total 3Q20 Occupancy Assuming Vacancy of Known Terminations | 92.9% |
(A) Vacancy of tenant allows the Company to consider redevelopment of this property
Q u a r t e r - O v e r - Q u a r t e r R e n t D e f e r r a l
(1) Includes $0.1M of unsigned deferrals that are under negotiation or with the tenant for execution.
APPENDIX
D E F I N I T I O N S & R E C O N C I L I AT I O N S
Town Center
Virginia Beach, VA
D E F I N I T I O N S | 30 |
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, and accordingly, our NOI may not be comparable to such other REITs' NOI. NOI is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, NOI should not be considered an alternative to cash flows as a measure of liquidity. We consider NOI to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of our real estate business.
To calculate NOI on a cash basis, we adjust NOI to exclude the net effects of straight-line rent and the amortization of lease incentives and above/below market rents.
FUNDS FROM OPERATIONS:
We calculate Funds From Operations ("FFO") in accordance with the standards established by the National Association of Real Estate Investment Trusts ("Nareit"). Nareit defines FFO as net income (loss) (calculated in accordance with accounting principles generally accepted in the United States ("GAAP")), excluding depreciation and amortization related to real estate, gains or losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.
FFO is a supplemental non-GAAP financial measure. Management uses FFO as a supplemental performance measure because it believes that FFO is beneficial to investors as a starting point in measuring our operational performance. Specifically, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, which do not relate to or are not indicative of operating performance, FFO provides a performance measure that, when compared period-over-period, captures trends in occupancy rates, rental rates and operating costs. Other equity REITs may not calculate FFO in accordance with the Nareit definition as we do, and, accordingly, our FFO may not be comparable to such other REITs' FFO.
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 debt, impairment of intangible assets and liabilities, mark-to-market adjustments on interest rate derivatives, provision for unrealized credit losses, amortization of right-of-use assets attributable to finance leases, severance related costs, and other non-comparable items.
Management believes that the computation of FFO in accordance to Nareit's definition includes certain items that are not indi cative of the results provided by the Company's operating portfolio and affect the comparability of the Company's period-over-period performance. Our calculation of Normalized FFO differs from Nareit's definition of FFO. Other equity REITs may not calculate Normalized FFO in the same manner as us, and, accordingly, our Normalized FFO may not be comparable to other REITs' Normalized FFO.
D E F I N I T I O N S | 31 |
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 expenditures, non -cash interest expense, proceeds from the sale of a purchase option (in excess of amounts recognized in net income), straight-line rents, cash ground rent payments for finance leases, the amortization of leasing incentives and above (below) market rents and proceeds from government development grants.
Management believes that AFFO provides useful supplemental information to investors regarding our operating performance as it provides a consistent comparison of our operating performance across time periods and allows investors to more easily compare our operating results with other REITs. However, other REITs may use different methodologies for calculating AFFO or similarly entitled FFO measures and, accordingly, our AFFO may not always be comparable to AFFO or other similarly entitled FFO measures of other REITs.
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, impairment of real estate assets, debt extinguishment losses, non-cash stock compensation and mark-to-market adjustments on interest rate derivates, other one time adjustments including non-recurring bad debt and termination fees, and including cash ground rent payments for finance leases. Management believes Adjusted EBITDA is useful to investors in evaluating and facilitating comparisons of our operating performance between periods and between REITs by removing the impact of our capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from our operating results along with other non-comparable items.
CORE EBITDA:
We calculate Core EBITDA as Adjusted EBITDA, excluding certain items, including, but not limited to, the impact of redevelopment and development pipeline projects that are still in lease-up. We generally consider a property to be in lease-up until the earlier of (i) the quarter after which the property reaches 80% occupancy or (ii) the thirteenth quarter after the property receives its certificate of occupancy. Management believes that Core EBITDA provides useful supplemental information to investors regarding our reoccurring operating performance as it provides a consistent comparison of our operating performance across time periods and allows investors to more easily compare our operating results with other REITs. However, other REITs may use different methodologies for calculating Core EBITDA or similarly entitled measures and, accordingly, our Core EBITDA may not always be comparable to Core EBITDA or other similarly entitled measures of other REITs.
CORE DEBT:
We calculate Core Debt as our total debt, excluding loans associated with our development pipeline, cash & cash equivalents, and restricted cash.
D E F I N I T I O N S | 32 |
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 (ii) the thirteenth quarter after the property receives its certificate of occupancy. Additionally, any property that is fully or partially taken out of service for the purpose of redevelopment is no longer considered stabilized until the redevelopment activities are complete, the asset is placed back into service, and the stabilization criteria above are again met. A property may also be fully or partially taken out of service as a result of a disposition, depending on the significance of the portion of the property disposed. Finally, any property classified as Held for Sale is taken out of service for the purpose computing same store operating results. The following table shows the properties included in the same store and non-same store portfolio for the comparative periods presented.
S A M E S T O R E V S . N O N - S A M E S T O R E P R O P E R T I E S | 33 |
Three Months Ended | Nine Months Ended | ||||
9/30/2020 to 2019 | 9/30/2020 to 2019 | ||||
Same | Non-Same | Same | Non-Same | ||
Store | Store | Store | Store | ||
Retail Properties | |||||
249 Central Park Retail | X | X | |||
Apex Entertainment | X | X | |||
Broad Creek Shopping Center | X | X | |||
Broadmoor Plaza | X | X | |||
Brooks Crossing (Retail) | X | X | |||
Columbus Village | X | X | |||
Columbus Village II | X | X | |||
Commerce Street Retail | X | X | |||
Courthouse 7-Eleven | X | X | |||
Dimmock Square | X | X | |||
Fountain Plaza Retail | X | X | |||
Greentree Shopping Center | X | X | |||
Hanbury Village | X | X | |||
Harrisonburg Regal | X | X | |||
Lexington Square | X | X | |||
Market at Mill Creek | X | X | |||
Marketplace at Hilltop | X | X | |||
Nexton Square | X | X | |||
North Hampton Market | X | X | |||
North Point Center | X | X | |||
Oakland Marketplace | X | X | |||
Parkway Centre | X | X | |||
Parkway Marketplace | X | X | |||
Patterson Place | X | X | |||
Perry Hall Marketplace | X | X | |||
Premier Retail | X | X | |||
Providence Plaza | X | X | |||
Red Mill Commons | X | X | |||
Sandbridge Commons | X | X | |||
Socastee Commons | X | X |
Three Months Ended | Nine Months Ended | |||
9/30/2020 to 2019 | 9/30/2020 to 2019 | |||
Same | Non-Same | Same | Non-Same | |
Store | Store | Store | Store | |
Retail Properties (Continued) | ||||
South Retail | X | X | ||
South Square | X | X | ||
Southgate Square | X | X | ||
Southshore Shops | X | X | ||
Studio 56 Retail | X | X | ||
Tyre Neck Harris Teeter | X | X | ||
Wendover Village | X | X | ||
Wendover Village II | X | X | ||
Wendover Village III | X | X | ||
Office Properties | ||||
4525 Main Street | X | X | ||
Armada Hoffler Tower | X | X | ||
Brooks Crossing (Office) | X | X | ||
One City Center | X | X | ||
One Columbus | X | X | ||
Thames Street Wharf | X | X | ||
Two Columbus | X | X | ||
Wills Wharf | X | X | ||
Multifamily Properties | ||||
1405 Point | X | X | ||
Encore Apartments | X | X | ||
Greenside Apartments | X | X | ||
Hoffler Place | X | X | ||
Johns Hopkins Village | X | X | ||
Liberty Apartments | X | X | ||
Premier Apartments | X | X | ||
Smith's Landing | X | X | ||
Summit Place | X | X | ||
The Cosmopolitan | X | X |
R E C O N C I L I AT I O N O F A D J U S T E D E B I T D A , C O R E E B I T D A , | 34 | ||||||||||
A N D C O R E D E B T ( 1 ) | |||||||||||
$ IN THOUSANDS | Three months ended | ||||||||||
9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | |||||||
Net income attributable to common stockholders and OP unit holders | $8,651 | $11,178 | $8,160 | $7,215 | $9,869 | ||||||
Excluding: | |||||||||||
Depreciation and amortization(2) | 14,131 | 13,644 | 14,092 | 15,285 | 15,057 | ||||||
Gain on operating real estate dispositions | (3,612) | (2,776) | - | - | (3,220) (3) | ||||||
Income tax provision (benefit) | (28) | 65 | (257) | (152) | (199) | ||||||
Interest expense(2) | 7,249 | 6,904 | 7,805 | 8,359 | 8,624 | ||||||
Change in fair value of interest rate derivatives | (318) | 6 | 1,736 | (327) | 530 | ||||||
Loss on extinguishment of debt | - | - | - | 30 | - | ||||||
GAAP adjustments related to finance leases | 160 | 158 | 160 | 159 | 166 | ||||||
Non-Recurring Bad Debt | 1,100 | (4) | 450 | (5) | - | - | - | ||||
Unrealized credit loss provision (release) | (33) | (117) | 377 | - | - | ||||||
Non-cash stock compensation | 456 | 421 | 1,030 | 274 | 323 | ||||||
Adjusted EBITDA(3) | $27,756 | $29,933 | $33,103 | $30,843 | $31,150 | ||||||
Development/Redevelopment: | |||||||||||
Premier Retail | (223) | (207) | (210) | (115) | (159) | ||||||
The Cosmopolitan Apartments | (981) | (878) | (923) | (904) | - | ||||||
Wills Wharf | (633) | - | - | - | - | ||||||
Summit Place | (388) | - | - | - | - | ||||||
Other Development | - | - | - | 9 | (1,340) | ||||||
Total Development/Redevelopment | (2,225) | (1,085) | (1,133) | (1,010) | (1,499) | ||||||
Dispositions completed intra-quarter | (80) | (1,351) | - | - | (226) | ||||||
Acquisitions completed intra-quarter | (75) | - | - | - | |||||||
Core EBITDA | $25,376 | $27,497 | $31,970 | $29,833 | $29,425 | ||||||
Annualized Core EBITDA | $101,502 | $109,989 | $127,880 | $119,332 | $117,700 | ||||||
Total debt(6) | $885,359 | $956,726 | $1,016,293 | $960,819 | $951,891 | ||||||
(Less) Development/Redevelopment | |||||||||||
Premier Retail | (8,250) | (8,250) | (8,250) | (8,250) | (7,440) | ||||||
The Cosmopolitan Apartments | (43,110) | (43,309) | (43,506) | (43,702) | (43,896) | ||||||
Wills Wharf | (57,585) | (53,660) | (45,759) | (29,154) | (17,714) | ||||||
Summit Place | (34,615) | (32,289) | (30,135) | (28,824) | (26,950) | ||||||
Other Development | - | - | - | - | (26,597) | ||||||
Total Development/Redevelopment | (143,560) | (137,508) | (127,650) | (109,930) | (122,597) | ||||||
(Less) Net Acquisitions completed intra-quarter | (22,909) | - | - | - | - | ||||||
(Less) Cash & restricted cash | (79,224) | (75,111) | (52,788) | (43,579) | (47,606) | ||||||
Core Debt | $639,666 | $744,107 | $835,855 | $807,310 | $781,688 | ||||||
- See definitions on page 31.
- Adjusted for the depreciation and interest expense attributable to noncontrolling interests in consolidated investments.
- Excludes non-recurring items.
- Bad debt resulting from Company's decision to terminate two defaulted Regal Cinemas leases.
- Adjusts bad debt to an annualized $3 million - Management's Estimates.
- Excludes GAAP Adjustments.
R E C O N C I L I AT I O N TO P R O P E R T Y P O R T F O L I O N O I 35
$ IN THOUSANDS
Three months ended 9/30 | Nine months ended 9/30 | ||||||
2020 | 2019 | 2020 | 2019 | ||||
Office Same Store(1) | |||||||
Rental revenues | $10,232 | $10,283 | $15,812 | $16,148 | |||
Property expenses | 3,648 | 3,739 | 5,810 | 5,798 | |||
NOI | 6,584 | 6,544 | 10,002 | 10,350 | |||
Non-Same Store NOI(2) | 455 | (155) | 10,512 | 4,459 | |||
Segment NOI | $7,039 | $6,389 | $20,514 | $14,809 | |||
Retail Same Store(1) | |||||||
Rental revenues | $14,530 | $16,686 | $36,656 | $39,019 | |||
Property expenses | 3,930 | 4,057 | 9,231 | 9,450 | |||
NOI | 10,600 | 12,629 | 27,425 | 29,569 | |||
Non-Same Store NOI(2) | 643 | 2,836 | 13,292 | 13,224 | |||
Segment NOI | $11,243 | $15,465 | $40,717 | $42,793 | |||
Multifamily Same Store(1) | |||||||
Rental revenues | $9,152 | $8,836 | $16,157 | $16,299 | |||
Property expenses | 4,075 | 3,627 | 6,666 | 6,412 | |||
NOI | 5,077 | 5,209 | 9,491 | 9,887 | |||
Non-Same Store NOI(2) | 1,294 | 1,104 | 9,885 | 6,746 | |||
Segment NOI | $6,371 | $6,313 | $19,376 | $16,633 | |||
Total Property Portfolio NOI | $24,653 | $28,167 | $80,607 | $74,235 |
- See page 33 for the Same Store vs. Non-Same Store properties
- Includes expenses associated with the Company's in-house asset management division.
RECONCILIATION TO GAAP NET INCOME 36
$ IN THOUSANDS
Three months ended 9/30/2020 | ||||||||||||||||||
Total Rental | General Contracting & | |||||||||||||||||
Office | Retail | Multifamily | Properties | Real Estate Services | Total | |||||||||||||
Segment revenues | $ | 11,456 | $ | 15,669 | $ | 12,511 | $ | 39,636 | $ | 58,617 | $ | 98,253 | ||||||
Segment expenses | 4,417 | 4,426 | 6,140 | 14,983 | 56,509 | 71,492 | ||||||||||||
Net operating income | $ | 7,039 | $ | 11,243 | $ | 6,371 | $ | 24,653 | $ | 2,108 | $ | 26,761 | ||||||
Depreciation and amortization | (14,176) | |||||||||||||||||
General and administrative expenses | (2,601) | |||||||||||||||||
Acquisition, development and other pursuit costs | (26) | |||||||||||||||||
Impairment charges | (47) | |||||||||||||||||
Gain on real estate dispositions | 3,612 | |||||||||||||||||
Interest income | 4,417 | |||||||||||||||||
Interest expense | (7,294) | |||||||||||||||||
Interest expense - finance leases | (229) | |||||||||||||||||
Unrealized credit loss release (provision) | 33 | |||||||||||||||||
Amortization of right-of-use assets - finance leases | (147) | |||||||||||||||||
Change in fair value of derivatives and other | 318 | |||||||||||||||||
Other income | 177 | |||||||||||||||||
Income tax benefit | 28 | |||||||||||||||||
Net income | $ | 10,826 | ||||||||||||||||
Net loss attributable to noncontrolling interest in investment entities | 45 | |||||||||||||||||
Preferred stock dividends | (2,220) | |||||||||||||||||
Net income attributable to AHH and OP unit holders | $ | 8,651 | ||||||||||||||||
Nine months ended 9/30/2020 | ||||||||||||||||||
Total Rental | General Contracting & | |||||||||||||||||
Office | Retail | Multifamily | Properties | Real Estate Services | Total | |||||||||||||
Segment revenues | $ | 32,142 | $ | 54,794 | $ | 34,904 | $ | 121,840 | $ | 163,283 | $ | 285,123 | ||||||
Segment expenses | 11,628 | 14,077 | 15,528 | 41,233 | 157,401 | 198,634 | ||||||||||||
Net operating income | $ | 20,514 | $ | 40,717 | $ | 19,376 | $ | 80,607 | $ | 5,882 | $ | 86,489 | ||||||
Depreciation and amortization | (42,232) | |||||||||||||||||
General and administrative expenses | (9,382) | |||||||||||||||||
Acquisition, development and other pursuit costs | (555) | |||||||||||||||||
Impairment charges | (205) | |||||||||||||||||
Gain on real estate dispositions | 6,388 | |||||||||||||||||
Interest income | 16,055 | |||||||||||||||||
Interest expense | (22,252) | |||||||||||||||||
Interest expense - finance leases | (686) | |||||||||||||||||
Unrealized credit loss release (provision) | (227) | |||||||||||||||||
Amortization of right-of-use assets - finance leases | (440) | |||||||||||||||||
Change in fair value of derivatives and other | (1,424) | |||||||||||||||||
Other income | 521 | |||||||||||||||||
Income tax benefit | 220 | |||||||||||||||||
Net income | $ | 32,270 | ||||||||||||||||
Net loss attributable to noncontrolling interest in investment entities | 181 | |||||||||||||||||
Preferred stock dividends | (4,462) | |||||||||||||||||
Net income attributable to AHH and OP Unitholders | $ | 27,989 | ||||||||||||||||
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Armada Hoffler Properties Inc. published this content on 05 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2020 11:26:14 UTC