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Mar 31, 2022

Armada Hoffler Q1 2022 Earnings Report

Reported net income of $0.11 per diluted share and normalized FFO of $0.28 per diluted share, raised 2022 full-year normalized FFO guidance range to $1.15 to $1.19 per diluted share.

Key Takeaways

Armada Hoffler Properties reported a net income of $9.3 million, or $0.11 per diluted share, for the quarter ended March 31, 2022, compared to $3.1 million, or $0.04 per diluted share, for the same period in 2021. Normalized FFO was $24.5 million, or $0.28 per diluted share, compared to $20.6 million, or $0.26 per diluted share, for the three months ended March 31, 2021. The company raised its 2022 full-year Normalized FFO guidance to $1.15 to $1.19 per diluted share.

Net income attributable to common stockholders and OP Unit holders of $9.3 million, or $0.11 per diluted share, compared to $3.1 million, or $0.04 per diluted share, for the three months ended March 31, 2021.

Normalized funds from operations attributable to common stockholders and OP Unit holders of $24.5 million, or $0.28 per diluted share, compared to $20.6 million, or $0.26 per diluted share, for the three months ended March 31, 2021.

Raised 2022 full-year Normalized FFO guidance to $1.15 to $1.19 per diluted share from the Company's previous guidance range of $1.11 to $1.15 per diluted share.

Stabilized operating property portfolio occupancy increased to 97.1% as of March 31, 2022.

Total Revenue
$54.6M
Previous year: $45.7M
+19.4%
EPS
$0.28
Previous year: $0.26
+7.7%
Gross Profit
$37.4M
Previous year: $30.9M
+21.0%
Cash and Equivalents
$32.9M
Previous year: $24.8M
+32.9%
Total Assets
$2.25B
Previous year: $1.93B
+16.4%

Armada Hoffler

Armada Hoffler

Armada Hoffler Revenue by Segment

Forward Guidance

The Company raised its 2022 full-year Normalized FFO guidance range to $1.15 to $1.19 per diluted share.

Positive Outlook

  • Disposition of two student housing assets in Charleston for $81 million, which closed in April
  • Interest expense, net of interest rate caps, based on the Forward Yield Curve ending 2022 at 3.1%
  • Additional capital deployed in Harbor Point Parcel 4 to total $74 million
  • Self-funding development pipeline through sale of non-core assets
  • Acquisition of $25 to $35 million of grocery-anchored retail assets

Challenges Ahead

  • No capital markets activity for the remainder of the year
  • Interest expense includes interest expense on finance leases
  • Guidance excludes certain items, including debt extinguishment losses, acquisition, development and other pursuit costs
  • Guidance excludes mark-to-market adjustments for interest rate derivatives, provision for non-cash unrealized credit losses
  • Guidance excludes amortization of right-of-use assets attributable to finance leases, severance related costs, and other non-comparable items.

Revenue & Expenses

Visualization of income flow from segment revenue to net income