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Sep 30, 2020

Armada Hoffler Q3 2020 Earnings Report

Armada Hoffler Properties reported results for the quarter ended September 30, 2020, and provided an update on current events and the impact of COVID-19.

Key Takeaways

Armada Hoffler Properties reported a decrease in net income to $8.7 million compared to $9.9 million for the third quarter of 2019, primarily due to decreased operating income and an increase in the allowance for bad debt in the retail portfolio. Normalized FFO decreased to $19.0 million compared to $22.5 million for the third quarter of 2019. The company collected 96% of portfolio rents for the third quarter.

Net income attributable to common stockholders and OP Unit holders was $8.7 million, or $0.11 per diluted share.

Funds from operations attributable to common stockholders and OP Unit holders (FFO) was $19.2 million, or $0.24 per diluted share.

Normalized funds from operations attributable to common stockholders and OP Unit holders (Normalized FFO) was $19.0 million, or $0.24 per diluted share.

Core operating property portfolio occupancy was at 95.4% as of September 30, 2020.

Total Revenue
$39.6M
Previous year: $42.2M
-6.1%
EPS
$0.24
Previous year: $0.3
-20.0%
Core Operating Property Portfolio Occupancy
95.4%
Gross Profit
$26.8M
Cash and Equivalents
$73.6M
Total Assets
$1.84B

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 $1.10 to $1.12 per diluted share.

Positive Outlook

  • Disposition of two unencumbered assets for $8M in cash proceeds at the end of the fourth quarter
  • Acquisition of Annapolis Junction and Edison Apartments in the fourth quarter
  • An additional $0.5M of potential bad debt write offs for the remainder of 2020
  • Interest expense is calculated based on Forward LIBOR Curve, which forecasts rates ending the year at 0.16%

Revenue & Expenses

Visualization of income flow from segment revenue to net income