Related Party Transactions

12 Months Ended

Dec. 31, 2013

Related Party Transactions

22. Related Party Transactions

Armada Hoffler provides general contracting and real estate services to certain related party entities that are not included in these consolidated and combined financial statements. Revenue from construction contracts with related party entities of Armada Hoffler was $45.0 million, $17.4 million and $0 million for the years ended December 31, 2013, 2012 and 2011, respectively. Operating margin from such contracts was $1.5 million, $1.2 million and $0 million for the years ended December 31, 2013, 2012 and 2011, respectively. Real estate services fees from affiliated entities of Armada Hoffler were not significant for any of the three years ended December 31, 2013. In addition, affiliated entities also reimburse Armada Hoffler for monthly maintenance and facilities management services provided to the properties. Cost reimbursements earned by Armada Hoffler from affiliated entities were not significant for any of the three years ended December 31, 2013.

In connection with the Formation Transactions, the Operating Partnership entered into tax protection agreements that indemnify certain directors and executive officers of the Company from their tax liabilities resulting from the potential future sale of certain of the Company’s properties within seven (or, in a limited number of cases, ten) years of the completion of the Formation Transactions on May 13, 2013.

Certain owners of Armada Hoffler, including Mr. Hoffler, guaranteed $154.8 million of Armada Hoffler’s indebtedness as of December 31, 2012.

Capital contributions from the owners of Armada Hoffler, including Mr. Hoffler, are presented as contributions in the combined statements of equity. Distributions to the owners of Armada Hoffler are presented as distributions in the combined statements of equity. Distributions payable to the owners of Armada Hoffler of $0.5 million are presented within due to affiliates in the combined balance sheets as of December 31, 2012, all of which were paid during 2013.