Segments (Tables)

3 Months Ended

Mar. 31, 2014

Net Operating Income of Reportable Segments

Net operating income of Armada Hoffler’s reportable segments for the three months ended March 31, 2014 and 2013 was as follows (in thousands):

	Three Months Ended March 31,
	2014		2013
	(Unaudited)
Office real estate
Rental revenues	$	6,549	$	6,486
Property expenses		2,131		1,946
Segment net operating income		4,418		4,540
Retail real estate
Rental revenues		5,770		5,005
Property expenses		1,825		1,680
Segment net operating income		3,945		3,325
Multifamily residential real estate
Rental revenues		2,874		1,907
Property expenses		1,363		815
Segment net operating income		1,511		1,092
General contracting and real estate services
Segment revenues		19,234		17,956
Segment expenses		17,985		17,458
Segment net operating income		1,249		498
Net operating income	$	11,123	$	9,455

Reconciliation of Net Operating Income to Net Income

The following table reconciles net operating income to net income for the three months ended March 31, 2014 and 2013 (in thousands):

	Three Months Ended March 31,
	2014			2013
	(Unaudited)
Net operating income	$	11,123		$	9,455
Depreciation and amortization		(3,969	)		(3,159	)
General and administrative expenses		(2,046	)		(717	)
Interest expense		(2,565	)		(3,915	)
Other income		112			267
Income tax provision		(149	)		—
Net income	$	2,506		$	1,931

Rental Revenues of Reportable Segments

Rental revenues of Armada Hoffler’s reportable segments for the three months ended March 31, 2014 and 2013 comprised the following (in thousands):

	Three Months Ended March 31,
	2014		2013
	(Unaudited)
Minimum rents
Office	$	6,152	$	6,100
Retail		4,774		4,365
Multifamily		2,450		1,627
Percentage rents (1)
Office		45		104
Retail		91		24
Multifamily		35		42
Other (2)
Office		352		282
Retail		905		616
Multifamily		389		238
Rental revenues	$	15,193	$	13,398

(1) Percentage rents are based on tenants’ sales.

(2) Other rental revenue includes cost reimbursements for real estate taxes, property insurance and common area maintenance as well as termination fees.

Property Expenses of Reportable Segments

Property expenses of Armada Hoffler’s reportable segments for the three months ended March 31, 2014 and 2013 comprised the following (in thousands):

	Three Months Ended March 31,
	2014		2013
	(Unaudited)
Rental expenses
Office	$	1,587	$	1,405
Retail		1,322		1,220
Multifamily		1,067		604
Total		3,976		3,229
Real estate taxes
Office		544		541
Retail		503		460
Multifamily		296		211
Total		1,343		1,212
Property expenses	$	5,319	$	4,441