EX-99.1 2 d602402dex991.htm EX-99.1 EX-99.1
Welcome –
Investor Day 2013
Julie Trudell, Vice President of Investor Relations
Exhibit 99.1

Forward-Looking Statements
1
We make statements in this presentation that are forward-looking statements within the meaning of the federal securities laws. In particular, statements pertaining to
our sources and uses of capital, the availability and terms of third party financing, our progress in developing properties in our development pipeline, our prospects
for future pipeline development projects, the performance of our property portfolio, estimates of revenues and profits from general contracting and real estate
services, anticipated market conditions and our results of operations contain forward-looking statements. You can identify forward-looking statements by the use of
forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates” or
“anticipates” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not
relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions.
Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements
depend on assumptions, data or methods which may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the
transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and
future events to differ materially from those set forth or contemplated in the forward-looking statements:
•   adverse economic or real estate developments, either nationally or in the markets in which our properties are located;
•   our failure to develop the properties in our identified development pipeline successfully, on the anticipated timeline or at the anticipated costs;
•   our failure to generate sufficient cash flows to service our outstanding indebtedness;
•   defaults on, early terminations of or non-renewal of leases by tenants, including significant tenants;
•   bankruptcy or insolvency of a significant tenant or a substantial number of smaller tenants;
•   difficulties in identifying or completing property development or acquisition opportunities, including our proposed acquisition of the Liberty Apartments;
•   our failure to successfully operate developed and acquired properties;
•   fluctuations in interest rates and increased operating costs;
•   our failure to obtain necessary outside financing on favorable terms or at all, including any increase in the borrowing capacity under our credit facility;
•   our failure to generate income in our general contracting and real estate services segment in amounts that we anticipate;
•   general economic conditions;
•   financial market fluctuations;
•   risks that affect the general retail environment or the market for office properties or multifamily units;
•   the competitive environment in which we operate;
•   decreased rental rates or increased vacancy rates;
•   conflicts of interests with our officers and directors;
•   lack or insufficient amounts of insurance;
•   environmental uncertainties and risks related to adverse weather conditions and natural disasters;
•   other factors affecting the real estate industry generally;
•   our failure to qualify and maintain our qualification as a REIT for U.S. federal income tax purposes;
•   limitations imposed on our business and our ability to satisfy complex rules in order for us to qualify as a REIT for U.S. federal income tax purposes; and
•   changes in governmental regulations or interpretations thereof, such as real estate and zoning laws and increases in real property tax rates and taxation of REITs.
While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. You should not place undue reliance on any
forward-looking statements that are based on information currently available to us. For a further discussion of these and other factors that could impact our future
results, performance or transactions, see the section titled “Risk Factors” in our Prospectus filed with the Securities and Exchange Commission (“SEC”) pursuant to
Rule 424(b)(4) on May 9, 2013 as part of our Registration Statement on Form S-11 and our subsequent quarterly reports on Form 10-Q and current reports on Form 8-K
filed with or furnished to the SEC.
We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information,
data or methods, future events or other changes after the date of this presentation, except as required by applicable law.

CEO Remarks
Lou Haddad

Company Overview
Stable Portfolio
Development Pipeline
Construction Fee Business
Agenda
3

National Reach with Strategic Mid-
Atlantic Focus
4
Current Portfolio & Development Pipeline
Previous Construction or Development Projects
Office
Retail
Multifamily
Pipeline
Property Key
AHH’s portfolio is concentrated in attractive markets with diverse growth drivers
and favorable supply/demand characteristics

Armada Hoffler has built
irreplaceable relationships
and credibility over decades
executing large, complex,
multi-use projects:
Provides unique access
Drives repeat business
National referral base
Sustainable competitive
advantage
Deep and Extensive Relationships
5
Construction, Development and Corporate Relationships
Public & Private Partnerships
H & S
Properties

Executive Team
6
Daniel A. Hoffler
Chairman of the Board
A. Russell Kirk
Vice Chairman          
of the Board
Louis S. Haddad
President & CEO
Anthony P. Nero
President of    
Development
Eric Apperson
President of 
Construction
Shelly Hampton,
President of Asset
Management
Eric L. Smith
VP of Operations
Michael P. O’Hara
Chief Financial Officer

Company Overview
Stable Portfolio
Development Pipeline
Construction Fee Business
Agenda
7

98.3%
98.8%
98.2%
98.0%
96.0%
92.4%
94.1%
93.4%
50%
60%
70%
80%
90%
100%
2006
2007
2008
2009
2010
2011
2012
2013 Q2
97.6%
97.6%
95.6%
94.6%
93.4%
93.5%
93.9%
94.6%
50%
60%
70%
80%
90%
100%
2006
2007
2008
2009
2010
2011
2012
2013 Q2
85.7%
88.9%
85.9%
95.5%
93.3%
94.9%
91.2%
50%
60%
70%
80%
90%
100%
2007
2008
2009
2010
2011
2012
2013 Q2
Stable Portfolio
Historical
Office
Occupancy
(1)
_____________________
(1)    Occupancy as of  12/31 for each period except for 2013 Q2
8
Historical
Retail
Occupancy
(1)
Historical
Multifamily
Occupancy
(1)

Well Managed Lease Terms
_____________________
(1) As of 6/30/13
Year of Lease Expirations
9
(% Office Portfolio ABR)
(1)
Well-managed Office Lease Terms
(% Retail Portfolio ABR)
(1)
Well-managed Retail Lease Terms
Year of Lease Expirations
4.2%
6.4%
10.7%
3.2%
6.4%
15.0%
5.1%
3.2%
3.9%
5.2%
7.7%
29.1%
0%
5%
10%
15%
20%
25%
30%
35%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
There-
after
1.8%
7.7%
10.0%
10.1%
11.0%
9.5%
20.8%
7.8%
2.6%
7.0%
4.2%
7.4%
0%
5%
10%
15%
20%
25%
30%
35%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
There-
after

Company Overview
Stable Portfolio
Development Pipeline
Construction Fee Business
Agenda
10

Value Creation of Pipeline Portfolio
11
$12M -
$14M
$8M -
$10M
~3 Years
Stabilized Portfolio NOI

Company Overview
Stable Portfolio
Development Pipeline
Construction Fee Business
Agenda
12

CEO Remarks
Lou Haddad

Development Update
Tony Nero, President of Development

$ in thousands
Property
Location
Property Type
Estimated Cost
Estimated Date
of Completion
4525 Main Street (Main Street Office)
Virginia Beach, VA
Office
50,863
$             
Q3 2014
Encore Apartments (Main Street
Apartments)
Virginia Beach, VA
Multifamily
32,845
                 
Q3 2014
Whetstone Apartments (Jackson Street
Apartments)
Durham, NC
Multifamily
27,857
                 
Q3 2014
Sandbridge Commons
Virginia Beach, VA
Retail
13,675
                 
Q1 2015
Brooks Crossing
Newport News, VA
Office
12,793
                 
Q1 2015
Greentree Shopping Center
Chesapeake, VA
Retail
5,402
                   
Q3 2014
Liberty Apartments (Apprentice School
Apartments)
Newport News, VA
Multifamily
31,900
                 
Q4 2013
(1)
175,335
$           
(1) Could be delayed up to 2 months
Pipeline Represents ~ $175 Million
New
Projects
to
be
delivered
in
2014
-
2015
15

4525 Main Street
16

Encore Apartments
17

Whetstone Apartments
18

Whetstone Apartments
19

Sandbridge Commons
20

Brooks Crossing
21
21

Greentree Shopping Center
22

Johns Hopkins Project
23

Liberty Apartments
24

Development Update
Tony Nero, President of Development

The Stable Portfolio
Shelly Hampton, President of Asset Management

Asset Management Objectives
•
Value Maximization
•
Risk Management
Diverse, Stable Portfolio
Lease Expiration and Rollover Strategies
Agenda
27

Asset Management Objectives
•
Value Maximization
•
Risk Management
Diverse, Stable Portfolio
Lease Expiration and Rollover Strategies
Agenda
28

Asset Management Objectives
•
Value Maximization
•
Risk Management
Diverse, Stable Portfolio
Lease Expiration and Rollover Strategies
Agenda
29

Office
•
7 properties 1.0 million SF
•
93.4% occupied
•
294,000 SF in pipeline
Retail
•
15 properties 1.1 million SF
•
94.6% occupied
•
90,600 SF in pipeline
Multi-Family
•
2 properties totaling 626 units
•
91.2% occupied
•
Estimated 688 units in pipeline
Diverse, Stable Mid-Atlantic Portfolio
30
Portfolio by Asset Class
(% Total Portfolio ABR)
_____________________
As of 6/30/13
Office
44.6%
Retail
37.8%
Multifamily
17.6%

Asset Management Objectives
•
Value Maximization
•
Risk Management
Diverse, Stable Portfolio
Lease Expiration and Rollover Strategies
Agenda
31

Strategy for Office Lease Rollover
_____________________
(1)
Occupancy as of 12/31 for each period except for 2013 Q2
(2)
As of 6/30/13
Year of Lease Expirations
32
98.3%
98.8%
98.2%
98.0%
96.0%
92.4%
94.1%
93.4%
50%
60%
70%
80%
90%
100%
2006
2007
2008
2009
2010
2011
2012
2013 Q2
4.2%
6.4%
10.7%
3.2%
6.4%
15.0%
5.1%
3.2%
3.9%
5.2%
7.7%
29.1%
0%
5%
10%
15%
20%
25%
30%
35%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
There-
after
(%
Office
Portfolio
ABR)
(2)
Well-managed Lease Terms
Historical Occupancy
(1)

Strategies for Office Lease Vacancies
33
6.6%
Office
Vacancy
-
by
Property
_____________________
As of 6/30/13
One Columbus
Oyster Point
Armada Hoffler
Tower
Two Columbus
Richmond Tower

Attractive Portfolio Fundamentals
Retail
_____________________
(1)
Occupancy as of 12/31for each period except for 2013 Q2
(2)
Excludes ground leases
(3)
As of 6/30/13
Year of Lease Expirations
34
(% Retail
Portfolio ABR)
(2)(3)
Well-managed Lease Terms
1.8%
7.7%
10.0%
10.1%
11.0%
9.5%
20.8%
7.8%
2.6%
7.0%
4.2%
7.4%
0%
5%
10%
15%
20%
25%
97.6%
97.6%
95.6%
94.6%
93.4%
93.5%
93.9%
94.6%
50%
60%
70%
80%
90%
100%
2006
2007
2008
2009
2010
2011
2012
2013 Q2
Historical
Occupancy
(1)
Representative Tenants

Strategy for Retail Lease Vacancy
35
5.4%  Retail Vacancy -
by Property
_____________________
As of 6/30/13
Hanbury Village
North Point Center
Dick's at Town Center
Studio 56 Retail
Bermuda Crossroads
Broad Creek Shopping
Center
Gainsborough Square

Multifamily Overview
The Cosmopolitan Apartments
Virginia Beach, VA
342 units
Built in 2006
(3)
Smith’s Landing
Blacksburg, VA
284 units
Built in 2009
Historical
Occupancy
(1)
_____________________
(1)
Occupancy as of 12/31for each period except for 2013 Q2
(2)
Represents estimates that may change as the development process proceeds
(3)
2007 was first year of operations
85.7%
88.9%
85.9%
95.5%
93.3%
94.9%
91.2%
50%
60%
70%
80%
90%
100%
2007
2008
2009
2010
2011
2012
2013 Q2
Our contributed portfolio consists of 2 properties totaling 626 units that are 91.2%
occupied with an additional 3 properties and 688 units in the pipeline
(2)
36

The Stable Portfolio
Shelly Hampton, President of Asset Management

Construction Insight
Eric Apperson, President of Construction

•
Support development pipeline
–
Provide accurate insight into construction cost environment
–
Manage construction costs
throughout development project
–
Manage construction risks
throughout development projects
–
Ensure timely delivery of REIT’s development pipeline projects
•
Source both third-party construction projects and development
pipeline opportunities by projecting strength, skill, and success to
existing and potential clients
•
Provide consistent source of incrementally accretive FFO
Benefits of Construction Platform
39

Risk:  Subcontractor financial status, safety record, insurance
coverage, licensure, staff, etc.
–
Solution:  Prequalification process conducted by our staff
accountants, safety department, preconstruction department
and executives.
Risk:  Owner contract terms
–
Solution:  Complete review and specific negotiations of terms.
Risk:  Project cost control
–
Solution:  Monthly review of accounting reports and quarterly
detailed analysis performed by project management,
controller and construction executives.
Managing Successful Construction
Projects –
Risk Management
40

•
Risk:  Subcontractors paying their suppliers and sub-subcontractors
–
Solution:  Conduct monthly supplier payment inquiries and/or
require joint checks.
•
Risk:  Stored material payments to subcontractors
–
•
Risk:  Deposits for material
–
Solution:  Require an advanced payment bond to ensure that
we have collateral.
Managing Successful Construction
Projects –
Risk Management (continued)
41
Solution:  Detailed process including requiring affidavits,
invoices, bill of sale, lien waivers or joint checks, insurance, 
and physical confirmation of material.  This ensures that we are
getting value for the payment, that the payment gets to the
provider, that we own the material, and that it is insured.

•
Risk:  Subcontract and supplier procurement
–
Solution:  Require a material and purchasing tracking log for
each project.  These logs determine the dates for bidding the
trade work, contracting the trade work, material and system
submittal and show fabrication and delivery time frames.
•
Risk:  Schedule management and delays
–
Solution:   The best way to manage is by being proactive and
communicate.   Prepare a schedule with enough time to
perform the work including a reasonable amount of weather
related impact days.  We typically use Saturday as a make-up
day for time lost during the week.  Monitor and manage the
schedule daily by the superintendent, weekly in staff meetings,
and discuss monthly with the owner.   Follow all notice
provisions in the owner contract regarding lost production due
to weather related impacts.
Managing Successful Construction
Projects –
Risk Management (continued)
42

Case Study on a Challenging
Construction Projects
43
Four Seasons / Legg Mason
•
Slurry Wall –
30”
thick slurry wall installed around a 3.5 acre site
within 20’
of Baltimore’s Inner Harbor (Patapsco River).
•
Mass
excavation
–
Excavate
240,000
cubic
yards
of
dirt,
to
a
depth
of 65’
below street level.
•
Impacted Soil –
Adjacent to Allied Signal Superfund chromium site. 
The site had inherent groundwater issues.  Special provisions
necessary to ensure no ground water migration during
construction.
•
35% MBE participation –
28% MBE and 7% WBE
•
Four Seasons Hotel Five-star quality finishes
•
LEED –
Legg Mason tower is certified
•
Schedule –
one year from pouring the slab on grade to substantial
completion of a 520,000 SF, 25-story office tower including Legg
Mason’s interior improvements.

Harbourside Project
Case Study on a Challenging
Construction Projects
44
•
The
project
is
in
very
close
proximity
to
both
the
Potomac
River
and
Rock Creek.
•
There were historic piles (George Washington era) in Rock Creek
that could not be disturbed requiring detailed protection of the
creek bank.
•
The schedule had to acknowledge the prohibition of work
adjacent to Rock Creek during shad spawning season.
•
The project included an underground parking garage that was
within 20 feet of Rock Creek requiring the full building perimeter to
be surrounded by sheet piling and a down hole pump dewater
system to prevent water infiltration into the construction site.
•
Part of the project included the Swedish Embassy.  The concept
design was from the winner of a Swedish design competition.  At
the request of the Swedish Government, a Swedish glass
subcontractor furnished and installed the exterior glass, including
mobilizing a Swedish work force for the installation.

•
$117.3 million in Total Value under Contract
•
$59.1 million in Cost in Place
•
$58.2 million in Cost to Complete
•
$200.0 million in Total Value under Negotiation
Third Party Construction Pipeline
Update
45
_____________________
As of 6/30/13

Construction Insight
Eric Apperson, President of Construction

Financial Highlights
Mike O’Hara, Chief Financial Officer

2Q 13 Highlights
Managing the Balance Sheet
Second half of 2013
Agenda
48

Pro Forma Core Funds from
Operations
49
$ in Thousands
Three months ended
Funds from Operations (FFO)
6/30/2013
(Unaudited)
Net income
$8,404
Depreciation and amortization
4,020
Gain on acquisitions
(9,460)
Real estate joint ventures
(78)
FFO, as defined by NAREIT
2,886
Pro Forma FFO
FFO, as defined by NAREIT
2,886
Interest expense
1,060
Real estate joint ventures
285
General and administrative expenses
(200)
Pro Forma FFO
4,031
Pro Forma Core FFO
Pro Forma FFO
4,031
Loss on extinguishment of debt
1,125
Non-cash stock compensation
769
Impairment charges
533
Pro Forma Core FFO
$6,458
Pro Forma Core FFO per share
$0.20
Common Shares and Units Outstanding
32,223

2Q13 Highlights
Managing the Balance Sheet
Second half of 2013
Agenda
50

Debt Maturity
$ in Thousands
51
_____________________
As of 6/30/13
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000

2Q13 Highlights
Managing the Balance Sheet
Second half of 2013
Agenda
52

CEO Summation
Lou Haddad

Summation
54
Development
Construction
Asset
Management

Q&A