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Jun 30, 2020

Armada Hoffler Q2 2020 Earnings Report

Reported net income and normalized FFO increased compared to the same quarter last year, and updated 2020 full-year normalized FFO guidance was issued.

Key Takeaways

Armada Hoffler Properties reported increased net income and normalized FFO for the second quarter of 2020. The company issued updated full-year normalized FFO guidance of $1.09 to $1.13 per diluted share. Portfolio occupancy remained strong, and the company collected a high percentage of rents.

Net income attributable to common stockholders and OP Unit holders was $11.2 million, or $0.14 per diluted share.

Normalized FFO was $22.6 million, or $0.29 per diluted share.

The company issued updated 2020 full-year Normalized FFO guidance in the range of $1.09 to $1.13 per diluted share.

Core operating property portfolio occupancy was at 93.6%.

Total Revenue
$39.9M
Previous year: $36.4M
+9.7%
EPS
$0.29
Previous year: $0.3
-3.3%

Armada Hoffler

Armada Hoffler

Armada Hoffler Revenue by Segment

Forward Guidance

The Company issued updated 2020 full-year Normalized FFO guidance in the range to $1.09 to $1.13 per diluted share.

Positive Outlook

  • Disposition of two unencumbered assets for $13M in cash proceeds at the end of the third quarter
  • Acquisition of Nexton Square and Edison Apartments in the third quarter
  • Assumes additional termination fees will be recognized in 2020
  • Interest expense is calculated based on Forward LIBOR Curve, which forecasts rates ending the year at 0.16%
  • Opportunistic use of the preferred stock ATM

Challenges Ahead

  • An additional $1.5M of bad debt write offs for the remainder of 2020