Segments (Tables)

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Net Operating Income of Reportable Segments

Net operating income of Armada Hoffler’s reportable segments for the three and nine months ended September 30, 2014 and 2013 was as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(Unaudited)
Office real estate
Rental revenues	$	7,295	$	6,364	$	20,363	$	19,270
Property expenses		2,351		2,081		6,453		5,967
Segment net operating income		4,944		4,283		13,910		13,303
Retail real estate
Rental revenues		6,086		5,683		17,559		16,071
Property expenses		1,795		1,745		5,310		5,054
Segment net operating income		4,291		3,938		12,249		11,017
Multifamily residential real estate
Rental revenues		3,332		2,852		9,303		7,187
Property expenses		1,748		1,331		4,698		3,224
Segment net operating income		1,584		1,521		4,605		3,963
General contracting and real estate services
Segment revenues		31,532		21,896		71,261		63,143
Segment expenses		30,468		20,907		67,807		60,868
Segment net operating income		1,064		989		3,454		2,275
Net operating income	$	11,883	$	10,731	$	34,218	$	30,558

Reconciliation of Net Operating Income to Net Income

The following table reconciles net operating income to net income for the three and nine months ended September 30, 2014 and 2013 (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	(Unaudited)
Net operating income	$	11,883		$	10,731		$	34,218		$	30,558
Depreciation and amortization		(4,567	)		(3,933	)		(12,593	)		(11,112	)
General and administrative expenses		(1,741	)		(1,638	)		(5,768	)		(5,212	)
Acquisition, development and other pursuit costs		(174	)		—			(174	)		—
Impairment charges		(15	)		—			(15	)		(533	)
Interest expense		(2,734	)		(2,598	)		(7,977	)		(9,802	)
Loss on extinguishment of debt		—			(1,127	)		—			(2,252	)
Gain on acquisitions		—			—			—			9,460
Other income (loss)		59			(109	)		(23	)		343
Income tax benefit (provision)		43			(74	)		(135	)		137
Net income	$	2,754		$	1,252		$	7,533		$	11,587

Rental Revenues of Reportable Segments

Rental revenues of Armada Hoffler’s reportable segments for 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)
Minimum rents
Office	$	6,954	$	6,059	$	19,326	$	18,264
Retail		5,167		4,759		14,760		13,733
Multifamily		2,813		2,370		7,906		6,060
Percentage rents (1)
Office		—		—		45		104
Retail		36		35		173		88
Multifamily		19		21		78		84
Other (2)
Office		341		304		992		901
Retail		883		890		2,626		2,251
Multifamily		500		461		1,319		1,043
Rental revenues	$	16,713	$	14,899	$	47,225	$	42,528

(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 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)
Rental expenses
Office	$	1,742	$	1,536	$	4,756	$	4,341
Retail		1,255		1,230		3,764		3,593
Multifamily		1,417		1,074		3,710		2,534
Total	$	4,414	$	3,840	$	12,230	$	10,468
Real estate taxes
Office	$	609	$	545	$	1,697	$	1,626
Retail		540		515		1,546		1,461
Multifamily		331		257		988		690
Total	$	1,480	$	1,317	$	4,231	$	3,777
Property expenses	$	5,894	$	5,157	$	16,461	$	14,245