•
Sep 30, 2022

Armada Hoffler Q3 2022 Earnings Report

Reported net income of $0.38 per diluted share and normalized FFO of $0.29 per diluted share.

Key Takeaways

Armada Hoffler Properties reported a strong third quarter with net income attributable to common stockholders and OP Unit holders increasing to $33.9 million, or $0.38 per diluted share. The company raised its 2022 full-year Normalized FFO guidance range to $1.18 to $1.20 per diluted share and executed significant new office leases.

Net income attributable to common stockholders and OP Unit holders was $33.9 million, or $0.38 per diluted share.

Normalized funds from operations attributable to common stockholders and OP Unit holders was $25.8 million, or $0.29 per diluted share.

The company raised 2022 full-year Normalized FFO guidance to $1.18 to $1.20 per diluted share.

Portfolio wide occupancy exceeded 97%, with retail occupancy reaching an all-time high of 98%.

Total Revenue
$53.7M
Previous year: $49.6M
+8.4%
EPS
$0.29
Previous year: $0.26
+11.5%
Gross Profit
$38.3M
Previous year: $32.9M
+16.6%
Cash and Equivalents
$54.7M
Previous year: $28M
+95.1%
Total Assets
$2.19B
Previous year: $1.98B
+10.2%

Armada Hoffler

Armada Hoffler

Forward Guidance

The Company raised its 2022 full-year Normalized FFO guidance range to $1.18 to $1.20 per diluted share.

Positive Outlook

  • Anticipated sale of Interlock in 2023
  • Acquisition of a $26.5 million grocery anchored retail asset
  • New $125 million unsecured term loan projected to close late November 2022
  • Total NOI is expected to be between $145.2M and $146.0M
  • Interest Income is expected to be between $14.6M and $15.0M

Challenges Ahead

  • Interest expense is projected to be between $35.4M and $36.1M
  • Construction Segment Gross Profit is expected to be between $7.8M and $8.4M
  • G&A Expenses are expected to be between $16.0M and $16.5M
  • Interest expense based on Forward Yield Curve, which forecasts rates ending the year at 4.4%
  • Guidance excludes certain items per Company's Normalized FFO definition