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Dec 31, 2019
Armada Hoffler Q4 2019 Earnings Report
Armada Hoffler Properties reported strong bottom line growth in Q4 2019, with a nearly 14 percent increase in per share earnings.
Key Takeaways
Armada Hoffler Properties reported Q4 2019 results, including net income of $0.09 per diluted share and normalized FFO of $0.30 per diluted share. The company's core operating property portfolio occupancy was at 96.5%. They added $109.2 million to third-party construction backlog during the quarter.
Net income attributable to common stockholders and OP Unit holders was $7.2 million, or $0.09 per diluted share.
Funds from operations (FFO) attributable to common stockholders and OP Unit holders was $22.5 million, or $0.29 per diluted share.
Normalized funds from operations (Normalized FFO) attributable to common stockholders and OP Unit holders was $22.9 million, or $0.30 per diluted share.
Third-party construction backlog increased by $109.2 million during the fourth quarter.
Armada Hoffler
Armada Hoffler
Armada Hoffler Revenue by Segment
Revenue by Segment
Rental revenues Revenue
CapyFin.comGeneral contracting & real estate services Revenue
CapyFin.com Forward Guidance
The Company is introducing its 2020 full-year Normalized FFO guidance in the range of $1.16 to $1.20 per diluted share.
Positive Outlook
- Asset recycling program completed during 2Q20.
- Interest expense is calculated based on the Forward LIBOR Curve, which forecasts rates ending the year at 1.48%.
- Opportunistic sale of approximately $80 million through the ATM program, resulting in a full year weighted average share count of 79.7 million.
- Includes amortization of exit fees for The Residences at Annapolis Junction & The Interlock.
- Total NOI $117.5M $118.5M
Challenges Ahead
- Normalized FFO excludes certain items, including debt extinguishment losses, acquisition, development and other pursuit costs, mark-to-market adjustments for interest rate derivatives, amortization of right-of-use assets attributable to finance leases, severance related costs, and other non-comparable items.
- Construction Segment Gross Profit $7.3M $8.0M
- G&A Expenses $12.9M $13.5M
- Mezzanine Interest Income [2] $21.7M $22.1M
- Interest Expense $35.2M $36.2M
Revenue & Expenses
Visualization of income flow from segment revenue to net income