Armada Hoffler Properties ( (AHH) ) has released its Q3 earnings. Here is a breakdown of the information Armada Hoffler Properties presented to its investors.
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Armada Hoffler Properties, Inc. is a vertically integrated, self-managed real estate investment trust (REIT) that specializes in developing, building, acquiring, and managing high-quality retail, office, and multifamily properties, primarily located in the Mid-Atlantic and Southeastern United States.
In its third-quarter 2024 earnings report, Armada Hoffler Properties announced a GAAP net loss of $10.4 million. However, the company reported a normalized FFO of $0.35 per diluted share, demonstrating resilience in operational cash flows. The company also highlighted significant growth in office and retail occupancy rates, with office occupancy reaching 94.7% and retail occupancy at 96.2%.
Key financial metrics include a decrease in net income compared to the previous year, primarily due to a decline in the fair value of interest rate swap derivatives and increased interest expenses. Despite these challenges, the normalized FFO showed an increase from the previous year, supported by higher portfolio net operating income (NOI) and interest income. The company successfully raised $108.7 million through a public offering, strengthening its financial position for future endeavors.
Strategically, Armada Hoffler achieved positive renewal spreads across all segments, with office leases showing an 18.5% increase in GAAP terms. The company executed 28 lease renewals and 9 new leases, covering over 273,000 square feet. With a construction backlog of $193.1 million, the company continues to have robust development and construction activities.
Looking ahead, Armada Hoffler has adjusted its full-year 2024 normalized FFO guidance range to $1.25-$1.27 per diluted share. The company remains focused on enhancing its balance sheet and maintaining high occupancy levels across its portfolio, with minimal commercial lease maturities in the near term, signaling confidence in its long-term strategic plans.
