$AHRT

Armada Hoffler Properties, Inc.

CIK:0001569187|SEC Filings

Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues
Rental revenues	$ 52,548	$ 50,720	$ 104,865	$ 100,902
Total revenues	52,548	50,720	104,865	100,902
Expenses
Rental expenses	12,440	11,129	25,297	22,498
Real estate taxes	4,797	5,056	9,532	9,773
Depreciation and amortization	17,902	16,661	36,143	35,691
General and administrative expenses	5,002	4,220	9,718	11,375
Acquisition, development, and other pursuit costs	16	29	16	83
Impairment charges	1,894	0	1,894	0
Total expenses	42,051	37,095	82,600	79,420
Loss on real estate dispositions, net	(713)	0	(854)	0
Operating income	9,784	13,625	21,411	21,482
Interest income	234	263	296	492
Interest expense	(14,122)	(15,282)	(27,904)	(27,719)
Equity in income (loss) of unconsolidated real estate entities	334	179	577	(1,236)
Gain on consolidation of real estate entities	0	3,920	0	3,920
Loss on extinguishment of debt	(523)	0	(523)	0
Change in fair value of derivatives and other	618	688	1,962	(61)
Unrealized credit loss (provision) release	(96)	242	(96)	242
Other income (expense), net	3	3	16	(86)
(Loss) income from continuing operations	(3,768)	3,638	(4,261)	(2,966)
(Loss) income from discontinued operations	(14,271)	2,512	(43,797)	4,963
Income tax provision from discontinued operations	(2,996)	567	(3,359)	377
Loss from discontinued operations, net of tax	(17,267)	3,079	(47,156)	5,340
Net (loss) income	(21,035)	6,717	(51,417)	2,374
Net loss (income) attributable to noncontrolling interests:
Investment entities	(243)	77	(265)	80
Operating Partnership	5,602	(845)	12,842	690
Net (loss) income attributable to AH Realty Trust, Inc.	(15,676)	5,949	(38,840)	3,144
Preferred stock dividends	(2,887)	(2,887)	(5,774)	(5,774)
Net (loss) income attributable to common stockholders	$ (18,563)	$ 3,062	$ (44,614)	$ (2,630)
Net (loss) income attributable to common stockholders from continuing operations per share (basic) (in dollars per share)	$ (0.07)	$ 0.01	$ (0.10)	$ (0.09)
Net (loss) income attributable to common stockholders from continuing operations per share (diluted) (in dollars per share)	(0.07)	0.01	(0.10)	(0.09)
Net (loss) income attributable to common stockholders from discontinued operations per share (basic) (in dollars per share)	(0.18)	0.03	(0.48)	0.06
Net (loss) income attributable to common stockholders from discontinued operations per share (diluted) (in dollars per share)	(0.18)	0.03	(0.48)	0.06
Net (loss) attributable to common stockholders per share (basic) (in dollars per share)	(0.25)	0.04	(0.58)	(0.03)
Net (loss) attributable to common stockholders per share (diluted) (in dollars per share)	$ (0.25)	$ 0.04	$ (0.58)	$ (0.03)
Weighted-average common shares outstanding (basic) (in shares)	75,291	80,154	77,553	80,073
Weighted-average common shares outstanding (diluted) (in shares)	75,291	80,154	77,553	80,073
Dividends and distributions declared per common share and unit (in dollars per share)	$ 0.14	$ 0.14	$ 0.28	$ 0.28
Comprehensive (loss) income:
Net (loss) income	$ (21,035)	$ 6,717	$ (51,417)	$ 2,374
Unrealized cash flow hedge gains (losses)	409	(366)	1,050	(1,416)
Realized cash flow hedge gains reclassified to net loss	(423)	(311)	(865)	(624)
Comprehensive (loss) income	(21,049)	6,040	(51,232)	334
Comprehensive (loss) income attributable to AH Realty Trust, Inc.	(15,687)	5,397	(38,695)	1,486
Investment entities
Expenses
Net (loss) income	243	(77)
Comprehensive (loss) income:
Net (loss) income	243	(77)
Realized cash flow hedge gains reclassified to net loss		30
Comprehensive loss (income) attributable to noncontrolling interests:	(243)	50	(265)	12
Operating Partnership
Expenses
Net (loss) income	(5,602)	845
Comprehensive (loss) income:
Net (loss) income	(5,602)	845
Unrealized cash flow hedge gains (losses)	95	(79)
Realized cash flow hedge gains reclassified to net loss	(98)	(76)
Comprehensive loss (income) attributable to noncontrolling interests:	$ 5,605	$ (693)	$ 12,802	$ 1,140

Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Cash flows from operating activities of continuing operations:

Net (loss) income

$ (51,417)

$ 2,374

Less: net loss (income) from discontinued operations, net of tax

47,156

(5,340)

Net income (loss) from continuing operations

(4,261)

(2,966)

Adjustments to reconcile net (loss) income from continuing operations to net cash provided by operating activities of continuing operations:

Depreciation of buildings and tenant improvements

26,937

35,348

Amortization of leasing costs, in-place lease intangibles, and right-of-use assets

9,206

9,162

Accrued straight-line rental revenue

(3,984)

(4,802)

Amortization of leasing incentives and above or below-market rents

(848)

(971)

Accrued straight-line ground rent expense

(41)

(28)

Unrealized credit loss provision (release)

(242)

Adjustment for uncollectible lease accounts

552

2,506

Noncash stock compensation

2,745

4,826

Impairment charges

1,894

Noncash interest expense

1,332

2,200

Gain on consolidation of real estate entities

(3,920)

Noncash loss on extinguishment of debt

342

Loss on real estate dispositions, net

854

Change in fair value of derivatives and other

4,286

9,472

Adjustment for receipts on off-market interest rate derivatives

(8,054)

(10,374)

Equity in (income) loss of unconsolidated real estate entities

(577)

1,236

Changes in operating assets and liabilities:

Property assets

7,511

104

Property liabilities

3,692

(18,762)

Net cash provided by operating activities of continuing operations

41,682

22,789

Cash flows from investing activities:

Development of real estate investments

(3,410)

2,883

Tenant and building improvements

(22,246)

(22,789)

Dispositions of real estate investments, net of selling costs

18,300

Notes receivable issuances

(9,016)

Notes receivable paydowns

635

Payments to purchase off-market interest rate derivatives

(4,577)

Receipts on off-market interest rate derivatives

8,054

10,374

Leasing costs

(3,017)

(1,281)

Return of capital from equity method investments

635

Investments in equity method investments

(10,412)

(6,108)

Net cash used for investing activities of continuing operations

(20,477)

(21,498)

Cash flows from financing activities:

Costs from issuance of common stock, net

(196)

(66)

Common shares tendered for tax withholding

(363)

(1,374)

Repurchase and retirement of common stock, net

(33,358)

Debt issuances, credit facility, and construction loan borrowings

81,270

162,904

Debt and credit facility repayments, including principal amortization

(355,156)

(98,079)

Debt issuance costs

(1,153)

(727)

Cash paid on extinguishment of debt

(46,702)

(4,413)

Acquisition of non-controlling interest in consolidated real estate investments

(2,003)

(4,200)

Redemption of operating partnership units

(4)

Distributions to noncontrolling interests

(382)

(436)

Contributions from noncontrolling interests

3,719

Dividends and distributions

(44,236)

(40,829)

Net cash (used for) provided by financing activities of continuing operations

(398,560)

12,776

Cash flows from discontinued operations:

Net cash flows provided by (used in) operating activities of discontinued operations

3,544

(11,579)

Net cash flows provided by (used in) investing activities of discontinued operations

358,830

(17,484)

Net cash flows used in financing activities of discontinued operations

(3,655)

(2,626)

Net cash flows from discontinued operations

358,719

(31,689)

Net decrease in cash, cash equivalents, and restricted cash

(18,636)

(17,622)

Cash, cash equivalents, and restricted cash, beginning of period (including discontinued operations)

^[1]

54,183

72,223

Cash, cash equivalents, and restricted cash, end of period (including discontinued operations)

^[1]

35,547

54,601

Supplemental Disclosures:

Decrease in dividends and distributions payable

(11,098)

(6,486)

(Decrease) increase in accrued improvements and development costs

(6,471)

558

Operating Partnership units redeemed for common shares

(179)

(2,528)

Fair value of note receivable as partial consideration for disposition of general contracting and real estate services business

$ 777

$ 0

[1]

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the Condensed Consolidated Statements of Cash Flows (in thousands):


	June 30,
	2026		2025
Beginning of quarter:
Cash and cash equivalents(1)	$	40,743	$	21,986
Restricted cash(2)(3)	1,622		103
Cash, cash equivalents, and restricted cash	$	42,365	$	22,089

End of quarter:
Cash and cash equivalents(4)	$	20,662	$	21,958
Restricted cash(2)(5)	1,547		911
Cash, cash equivalents, and restricted cash	$	22,209	$	22,869

(1) Excludes cash and cash equivalents from discontinued operations as of December 31, 2025 and December 31, 2024 of $10.2 million and $48.7 million, respectively.

(2) Restricted cash represents amounts held by lenders for real estate taxes, insurance, and reserves for capital improvements.

(3) Excludes restricted cash from discontinued operations as of December 31, 2025 and December 31, 2024 of $1.6 million and $1.5 million, respectively.

(4) Excludes cash and cash equivalents from discontinued operations as of June 30, 2026 and June 30, 2025 of $7.8 million and $30.2 million, respectively.

(5) Excludes restricted cash from discontinued operations as of June 30, 2026 and June 30, 2025 of $5.5 million and $1.6 million, respectively.

Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands

Jun. 30, 2026

Dec. 31, 2025

Real estate investments:

Income producing property

$ 1,784,337

$ 1,801,279

Held for development

5,683

Construction in progress

14,239

13,028

Real estate investments, at cost

1,798,576

1,819,990

Accumulated depreciation

(422,439)

(410,565)

Net real estate investments

1,376,137

1,409,425

Real estate investments held for sale

4,800

Assets of discontinued operations

189,913

800,536

Cash and cash equivalents

20,662

^[1]

40,743

^[2]

Restricted cash

^[4]

1,547

^[3]

1,622

^[5]

Accounts receivable, net

62,482

64,747

Notes receivable, net

9,233

Equity method investments

58,444

47,926

Operating lease right-of-use assets

22,491

22,610

Finance lease right-of-use assets

76,884

77,539

Acquired lease intangible assets

69,954

76,408

Other assets

40,217

50,154

Total Assets

1,927,964

2,596,510

LIABILITIES AND EQUITY

Indebtedness, net

955,862

1,283,987

Accounts payable and accrued liabilities

30,340

36,810

Operating lease liabilities

31,108

31,198

Finance lease liabilities

85,243

84,835

Other liabilities

29,397

43,986

Total Liabilities

1,212,961

1,767,318

Stockholders’ equity:

Preferred stock, $0.01 par value, 100,000,000 shares authorized: 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock, 9,980,000 shares authorized; 6,843,418 shares issued and outstanding as of June 30, 2026 and December 31, 2025

171,085

Common stock, $0.01 par value, 500,000,000 shares authorized; 74,594,185 and 80,166,778 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively

749

805

Additional paid-in capital

691,746

724,667

Distributions in excess of earnings

(335,100)

(269,484)

Accumulated other comprehensive income

848

703

Total stockholders’ equity

529,328

627,776

Noncontrolling interests in investment entities

12,134

8,532

Noncontrolling interests in Operating Partnership

173,541

192,884

Total Equity

715,003

829,192

Total Liabilities and Equity

1,927,964

2,596,510

Liabilities of discontinued operations

Real estate investments:

Assets of discontinued operations

189,913

800,536

LIABILITIES AND EQUITY

Liabilities of discontinued operations

$ 81,011

$ 286,502

[1]	Excludes cash and cash equivalents from discontinued operations as of June 30, 2026 and June 30, 2025 of $7.8 million and $30.2 million, respectively.
[2]	Excludes cash and cash equivalents from discontinued operations as of December 31, 2025 and December 31, 2024 of $10.2 million and $48.7 million, respectively.
[3]	Excludes restricted cash from discontinued operations as of June 30, 2026 and June 30, 2025 of $5.5 million and $1.6 million, respectively.
[4]	Restricted cash represents amounts held by lenders for real estate taxes, insurance, and reserves for capital improvements
[5]	Excludes restricted cash from discontinued operations as of December 31, 2025 and December 31, 2024 of $1.6 million and $1.5 million, respectively.