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Dec 31, 2021

Armada Hoffler Q4 2021 Earnings Report

Armada Hoffler Properties reported mixed results for Q4 2021, with net income slightly increasing and Normalized FFO per diluted share increasing.

Key Takeaways

Armada Hoffler Properties reported fourth quarter and full year 2021 results, with net income of less than $0.01 per diluted share for the fourth quarter and $0.17 per diluted share for the full year. Normalized FFO was $0.27 per diluted share for the fourth quarter and $1.07 per diluted share for the full year. The company introduced 2022 full-year Normalized FFO guidance of $1.11 to $1.15 per diluted share.

Net income attributable to common stockholders and OP Unit holders was $0.4 million, or less than $0.01 per diluted share.

Normalized funds from operations attributable to common stockholders and OP Unit holders was $21.9 million, or $0.27 per diluted share.

Stabilized operating property portfolio occupancy increased to 96.7% as of December 31, 2021.

Completed the disposition of student housing asset Johns Hopkins Village for $75M.

Total Revenue
$49.5M
Previous year: $44.6M
+10.8%
EPS
$0.27
Previous year: $0.25
+8.0%

Armada Hoffler

Armada Hoffler

Forward Guidance

The Company is introducing its 2022 full-year Normalized FFO guidance in the range of $1.11 to $1.15 per diluted share.

Positive Outlook

  • Acquisition of Exelon building, located in Baltimore’s Harbor Point, which closed on January 14, 2022
  • Disposition of two student housing assets in Charleston for $80M during the second quarter of 2022
  • Interest expense, net of interest rate caps, based on the Forward LIBOR Curve ending 2022 at 1%
  • Acquisition targets up to $100M, closing during the second half of 2022
  • Begin funding new $20M preferred equity loan for Solis City Park multifamily project during the first quarter of 2022

Challenges Ahead

  • Interlock Commercial mezzanine loan paid down by $14M during the first quarter, then fully paid off in early 2023
  • Opportunistic sale of common stock through the ATM program