Derivative Financial Instruments

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

6. Derivative Financial Instruments

On March 14, 2014, the Company executed a LIBOR interest rate cap agreement on a notional amount of $50.0 million and a strike price of 1.25% for a premium of $0.4 million. The interest rate cap agreement expires on March 1, 2017.

The Company’s derivatives comprised the following as of September 30, 2014 and December 31, 2013 (in thousands):

	September 30, 2014							December 31, 2013
	(Unaudited)
	Notional Amount		Fair Value					Notional Amount		Fair Value
			Asset		Liability					Asset		Liability
Pay fixed interest rate swaps	$	690	$	—	$	(11	)	$	705	$	—	$	(16	)
Interest rate caps		180,496		370		—			130,672		102		—
Total	$	181,186	$	370	$	(11	)	$	131,377	$	102	$	(16	)

The changes in the fair value of Armada Hoffler’s derivatives during the three and nine months ended September 30, 2014 and 2013 comprised the following (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2014		2013			2014			2013
	(Unaudited)
Pay fixed interest rate swaps	$	4	$	(2	)	$	5		$	150
Interest rate caps		42		(113	)		(128	)		(109	)
Other income (loss)	$	46	$	(115	)	$	(123	)	$	41