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Jun 30, 2021
Armada Hoffler Q2 2021 Earnings Report
Reported a decrease in net income but an increase in FFO and Normalized FFO, raised full-year Normalized FFO guidance due to anticipated NOI from the operating portfolio and acquisitions.
Key Takeaways
Armada Hoffler Properties reported second-quarter results with a decrease in net income but an increase in Funds From Operations (FFO) and Normalized FFO. The company raised its full-year Normalized FFO guidance due to higher forecast net operating income (NOI) from the operating portfolio and acquisitions. Leasing activity is high, and the development pipeline is progressing rapidly.
Net income attributable to common stockholders was $5.6 million, or $0.07 per diluted share.
Funds from operations (FFO) was $22.9 million, or $0.28 per diluted share.
Normalized funds from operations (Normalized FFO) was $23.3 million, or $0.29 per diluted share, including $0.03 per diluted share from an early loan repayment.
Full-year Normalized FFO guidance was raised to $1.02 to $1.06 per diluted share.
Armada Hoffler
Armada Hoffler
Forward Guidance
The Company issued updated 2021 full-year Normalized FFO guidance in the range to $1.02 to $1.06 per diluted share from $0.98 to $1.02.
Positive Outlook
- Acquisition of two retail centers, Overlook Village and Greenbrier Square, in the third quarter
- Interest Expense based on Forward LIBOR Curve, which forecasts rates ending the year at 0.19%
- Opportunistic sale of common stock through the ATM program, resulting in a full year weighted average share count of 82M
- Expected ranges Total NOI$122.0M$123.0M
- Construction Segment Gross Profit$3.7M$4.2M
Challenges Ahead
- G&A Expenses$14.5M$14.8M
- Mezzanine Interest Income$17.8M$18.2M
- Interest Expense[2]$33.2M$33.8M
- Normalized FFO per diluted share [3]$1.02 $1.06
- The Company does not provide a reconciliation for its guidance range of Normalized FFO per diluted share to net income per diluted share