8-K

UNITED STATES

SECURITIES ANDEXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  February 9, 2017

ARMADA HOFFLER PROPERTIES, INC.

(Exact name of registrant as specified in its charter)

Maryland	001-35908	46-1214914
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

222 Central Park Avenue, Suite 2100
Virginia Beach, Virginia	23462
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (757) 366-4000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

◻    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.Results of Operations and Financial Condition.

On February 9, 2017, Armada Hoffler Properties, Inc. (the “Company”) issued a press release announcing its financial position as of December 31, 2016, results of operations for the three and twelve months ended December 31, 2016 and other related information. Also on February 9, 2017, the Company made available on its website at www.ArmadaHoffler.com certain supplemental information concerning the Company’s financial results and operations for the three and twelve months ended December 31, 2016. Copies of such press release and supplemental information are furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.

Item 7.01. Regulation FD Disclosure.

The disclosure contained in Item 2.02 is incorporated herein by reference.

On February 9, 2017, the Company made available a presentation regarding its 2017 full-year guidance, which is furnished as Exhibit 99.3 to this Current Report on Form 8-K.

In accordance with General Instructions B.2 and B.6 of Form 8-K, the information included in this Current Report on Form 8-K, including Exhibits 99.1, 99.2 and 99.3 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Exchange Act or Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release, dated February 9, 2017, issued by Armada Hoffler Properties, Inc., providing its financial position as of December 31, 2016 and results of operations for the three and twelve months ended December 31, 2016.
99.2	Armada Hoffler Properties, Inc. Fourth Quarter 2016 Supplemental Information.
99.3	Armada Hoffler Properties, Inc. 2017 Guidance Presentation.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ARMADA HOFFLER PROPERTIES, INC.
Date: February 9, 2017		/s/ MICHAEL P. O’HARA
		Michael P. O’Hara
		Chief Financial Officer and Treasurer

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated February 9, 2017, issued by Armada Hoffler Properties, Inc., providing its financial position as of December 31, 2016 and results of operations for the three and twelve months ended December 31, 2016.
99.2	Armada Hoffler Properties, Inc. Fourth Quarter 2016 Supplemental Information.
99.3	Armada Hoffler Properties, Inc. 2017 Guidance Presentation.

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EX-99.1

Exhibit 99.1

PRESS RELEASE

ARMADA HOFFLER PROPERTIES REPORTS FOURTH QUARTER AND FULL YEAR 2016 RESULTS

Net Income of $0.09 per Diluted Share for the Fourth Quarter

and $0.85 per Diluted Share for the Full Year

Normalized FFO of $0.25 per Diluted Share for the Fourth Quarter

and $1.01 per Diluted Share for the Full Year

Company Introduces 2017 Full-Year Normalized FFO Guidance

Board of Directors Increases First Quarter 2017 Cash Dividend by 5.6% to $0.19 per Share

VIRGINIA BEACH, VA, February 9, 2017 – Armada Hoffler Properties, Inc. (NYSE: AHH) today announced its results for the quarter and year ended December 31, 2016 and provided an update on current events.

Highlights include:

• Net income of $5.1 million, or $0.09 per diluted share, for the quarter ended December 31, 2016 compared to net income of $8.4 million, or $0.19 per diluted share, for the quarter ended December 31, 2015. Net income of $42.8 million, or $0.85 per diluted share, for the year ended December 31, 2016 compared to net income of $31.2 million, or $0.75 per diluted share, for the year ended December 31, 2015.

• Normalized Funds From Operations (“FFO”) of $13.7 million, or $0.25 per diluted share, for the quarter ended December 31, 2016 compared to Normalized FFO of $10.6 million, or $0.24 per diluted share, for the quarter ended December 31, 2015. Normalized FFO of $50.9 million, or $1.01 per diluted share, for the year ended December 31, 2016 compared to Normalized FFO of $38.7 million, or $0.93 per diluted share, for the year ended December 31, 2015.

• FFO of $14.7 million, or $0.27 per diluted share, for the quarter ended December 31, 2016 compared to FFO of $9.6 million, or $0.22 per diluted share, for the quarter ended December 31, 2015. FFO of $48.0 million, or $0.96 per diluted share, for the year ended December 31, 2016 compared to FFO of $35.9 million, or $0.87 per diluted share, for the year ended December 31, 2015.

• Introduced 2017 full-year Normalized FFO guidance in the range of $0.99 to $1.03 per diluted share, as illustrated in the enclosed presentation that can also be found on the Company's website at www.ArmadaHoffler.com. The Company's executive management will provide further details regarding its 2017 earnings guidance during today's webcast and conference call.

• Announced that its Board of Directors declared a cash dividend of $0.19 per common share for the first quarter of 2017, representing a 5.6% increase over the prior quarter’s cash dividend and the third increase in three years totaling approximately 19% dividend growth.

• Same Store Net Operating Income (“NOI”) increased for the tenth consecutive quarter.

• Core operating property portfolio occupancy at 94.3% compared to 95.3% as of December 31, 2015. The decrease in occupancy is primarily due to existing tenants within Town Center expanding and relocating to our 4525 Main Street tower, which is a non-core office property.

• Agreed to develop, build and own a 100,000 square foot office tower anchored by Newport News Shipbuilding, a division of Huntington Ingalls Industries (NYSE:HII), as part of an ongoing public-private partnership with the City of Newport News on the Brooks Crossing development project.

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• Closed on the acquisition of Columbus Village II, a 92,000 square foot retail and entertainment center adjacent to the Town Center of Virginia Beach, Virginia. Combined with Columbus Village I, which was acquired in 2015, the resulting contiguous 12 acres are a prime target for redevelopment and ultimate integration into the dynamic Town Center environment.

• Closed on the acquisition of Renaissance Square, an 80,000 square foot Harris Teeter-anchored retail center located in the greater Charlotte area of North Carolina.

• Added to the MSCI U.S REIT Index (RMZ) effective as of the close of the market on November 30, 2016.

Commenting on the Company’s results, Louis Haddad, President and CEO, said, "While I am pleased to report another quarter and year of bottom-line per share growth, I’m more excited about the value that we’ve delivered to our shareholders this past year and our potential for future growth over the coming years. Our total shareholder return for 2016 was 47 percent, significantly outperforming both the RMS and Russell 2000 indices. And when I look at the quality of assets and locations in our development pipeline, there’s good reason to be optimistic about the future growth potential of our Company."

Operating Performance

The fourth quarter and full year changes in net income, Normalized FFO and FFO were positively impacted by property acquisitions, organic same store NOI growth and higher interest income, which were partially offset by lower construction segment gross profits and higher interest expense. The full year change in net income was also positively impacted by higher gains on real estate dispositions, which were partially offset by higher depreciation and amortization expense from acquired properties and new properties placed into service. For the fourth quarter, both net income and FFO were positively impacted by mark-to-market gains on interest rate derivatives. Net income for the fourth quarter was negatively impacted by the decrease in gains on real estate dispositions when compared to the fourth quarter of 2015.

At the end of the fourth quarter, the Company’s office, retail and multifamily core operating property portfolios were 89.9%, 95.8% and 94.3% occupied, respectively. The decrease in office occupancy is primarily due to existing tenants within Town Center expanding and relocating to our 4525 Main Street tower, which is a non-core office property.

Total construction contract backlog was $217.7 million at the end of the year.

Balance Sheet and Financing Activity

As of December 31, 2016, the Company had $527 million of total debt outstanding, including $107 million outstanding under its revolving credit facility. Total debt outstanding excludes unamortized GAAP fair value adjustments and deferred financing costs. Approximately 46% of the Company’s debt had fixed interest rates or were subject to interest rate swaps as of December 31, 2016. After considering LIBOR interest rate caps with strike prices at or below 150 basis points, as of December 31, 2016, approximately 97% of the Company’s debt was fixed or hedged.

During the fourth quarter, the Company raised an aggregate of $17.4 million of gross proceeds under its At-The-Market (“ATM”) continuous equity offering program at a weighted average price of $14.10 per share. For the year ended December 31, 2016, the Company raised an aggregate of $68.5 million of gross proceeds under the ATM at a weighted average price of $12.89 per share.

Outlook

The Company is introducing its 2017 full-year Normalized FFO guidance in the range of $0.99 to $1.03 per diluted share, as illustrated in the enclosed presentation that can also be found on the Company's website at www.ArmadaHoffler.com. The Company's executive management will provide further details regarding its 2017 earnings guidance during today's webcast and conference call.

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Supplemental Financial Information

Further details regarding operating results, properties and leasing statistics can be found in the Company’s supplemental financial package available at www.ArmadaHoffler.com under the Investor Relations section.

Webcast and Conference Call

The Company will host a webcast and conference call on Thursday, February 9, 2017 at 8:30 a.m. Eastern Time to review financial results and discuss recent events. The live webcast will be available through the Investor Relations page of the Company’s website, www.ArmadaHoffler.com, or through www.viavid.com.  To participate in the call, please dial 877-407-3982 (domestic) or 201-493-6780 (international).  A replay of the conference call will be available through Thursday, March 9, 2017 by dialing 877-870-5176 (domestic) or 858-384-5517 (international) and entering the pass code 13652128.

About Armada Hoffler Properties, Inc.

Armada Hoffler Properties, Inc. is a full service real estate company with extensive experience developing, building, owning and managing high-quality, institutional-grade office, retail and multifamily properties in attractive markets throughout the Mid-Atlantic and Southeastern United States. The Company has elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes.

Forward-Looking Statements

Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These forward-looking statements may include comments relating to the current and future performance of the Company’s operating property portfolio, the Company’s development pipeline, the Company’s construction and development business, including backlog and timing of deliveries, financing activities, as well as acquisitions, dispositions and the Company’s financial outlook, guidance and expectations. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, and the other documents filed by the Company with the Securities and Exchange Commission.

Non-GAAP Financial Measures

The Company calculates FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”).  NAREIT defines FFO as net income (loss) (calculated in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures.

FFO is a supplemental non-GAAP financial measure.  The Company uses FFO as a supplemental performance measure because it believes that FFO is beneficial to investors as a starting point in measuring the Company’s operational performance.  Specifically, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, which do not relate to or are not indicative of operating performance, FFO provides a performance measure that, when compared period-over-period, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare the Company’s operating performance with that of other REITs.

However, because FFO excludes depreciation and amortization and captures neither the changes in the value of the Company’s properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of the Company’s properties, all of which have real economic effects and could materially impact the Company’s results from operations, the utility of FFO as a measure of the Company’s performance is limited.  In addition, other equity REITs may not calculate FFO in

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accordance with the NAREIT definition as the Company does, and, accordingly, the Company’s FFO may not be comparable to such other REITs’ FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of the Company’s performance.

Management also believes that the computation of FFO in accordance with NAREIT’s definition includes certain items that are not indicative of the results provided by the Company’s operating property portfolio and affect the comparability of the Company’s period-over-period performance. Accordingly, management believes that Normalized FFO is a more useful performance measure that excludes certain items, including but not limited to, debt extinguishment losses and prepayment penalties, property acquisition, development and other pursuit costs, mark-to-market adjustments for interest rate derivatives and other non-comparable items.

For reference, as an aid in understanding the Company’s computation of FFO and Normalized FFO, a reconciliation of net income calculated in accordance with GAAP to FFO and Normalized FFO has been included in the final page of this release.

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ARMADA HOFFLER PROPERTIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

	December 31,
	2016			2015
	(Unaudited)
ASSETS
Real estate investments:
Income producing property	$	894,078		$	579,000
Held for development	680			1,180
Construction in progress	13,529			53,411
Accumulated depreciation	(139,553		)	(125,380		)
Net real estate investments	768,734			508,211
Real estate investments held for sale	—			40,232
Cash and cash equivalents	21,942			26,989
Restricted cash	3,251			2,824
Accounts receivable, net	15,052			21,982
Notes receivable	59,546			7,825
Construction receivables, including retentions	39,433			36,535
Construction contract costs and estimated earnings in excess of billings	110			88
Equity method investments	10,235			1,411
Other assets	64,165			43,450
Total Assets	$	982,468		$	689,547
LIABILITIES AND EQUITY
Indebtedness, net	$	522,180		$	377,593
Accounts payable and accrued liabilities	10,804			6,472
Construction payables, including retentions	51,130			52,067
Billings in excess of construction contract costs and estimated earnings	10,167			2,224
Other liabilities	39,209			25,471
Total Liabilities	$	633,490		$	463,827
Total Equity	348,978			225,720
Total Liabilities and Equity	$	982,468		$	689,547

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ARMADA HOFFLER PROPERTIES, INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS

(in thousands, except per share amounts)

	Three Months Ended December 31,						Year Ended December 31,
	2016			2015			2016			2015
	(Unaudited)
Revenues
Rental revenues	$	26,516		$	21,771		$	99,355		$	81,172
General contracting and real estate services	50,475			41,309			159,030			171,268
Total revenues	76,991			63,080			258,385			252,440
Expenses
Rental expenses	5,670			4,948			21,904			19,204
Real estate taxes	2,542			2,110			9,629			7,782
General contracting and real estate services	49,039			40,203			153,375			165,344
Depreciation and amortization	9,692			6,162			35,328			23,153
General and administrative	2,688			2,100			9,552			8,397
Acquisition, development and other pursuit costs	77			885			1,563			1,935
Impairment charges	171			18			355			41
Total expenses	69,879			56,426			231,706			225,856
Operating income	7,112			6,654			26,679			26,584
Interest income	1,300			126			3,228			126
Interest expense	(4,573		)	(3,411		)	(16,466		)	(13,333		)
Loss on extinguishment of debt	—			(102		)	(82		)	(512		)
Gain on real estate dispositions	93			4,987			30,533			18,394
Change in fair value of interest rate derivatives	1,323			9			(941		)	(229		)
Other income (loss)	(7		)	63			147			119
Income before taxes	5,248			8,326			43,098			31,149
Income tax provision	(103		)	117			(343		)	34
Net income	5,145			8,443			42,755			31,183
Per diluted share	$	0.09		$	0.19		$	0.85		$	0.75
Weighted average shares outstanding	54,258			43,438			50,224			41,383

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ARMADA HOFFLER PROPERTIES, INC.

RECONCILIATION OF NET INCOME TO FFO & NORMALIZED FFO

(in thousands, except per share amounts)

	Three Months Ended   December 31,						Year Ended   December 31,
	2016			2015			2016			2015
Net income	$	5,145		$	8,443		$	42,755		$	31,183
Depreciation and amortization	9,692			6,162			35,328			23,153
Gain on dispositions of operating real estate(1)	(93		)	(4,987		)	(30,103		)	(18,394		)
Funds From Operations (FFO)	$	14,744		$	9,618		$	47,980		$	35,942
Acquisition costs	77			885			1,563			1,935
Impairment charges	171			18			355			41
Loss on extinguishment of debt	—			102			82			512
Change in fair value of interest rate derivatives	(1,323		)	(9		)	941			229
Normalized FFO	$	13,669		$	10,614		$	50,921		$	38,659
FFO per diluted share	$	0.27		$	0.22		$	0.96		$	0.87
Normalized FFO per diluted share	$	0.25		$	0.24		$	1.01		$	0.93
Weighted average shares outstanding	54,258			43,438			50,224			41,383

(1) Excludes gains on non-operating undepreciated real estate of $430 for the year ended December 31, 2016.

Contact:

Michael P. O’Hara

Armada Hoffler Properties, Inc.

Chief Financial Officer and Treasurer

Email: MOHara@ArmadaHoffler.com

Phone: (757) 366-6684

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EX-99.2

2 Table of Contents Same Store NOI by Segment Top 10 Tenants by Annualized Base Rent Office Lease Summary Office Lease Expirations Retail Lease Summary Retail Lease Expirations Net Asset Value Component Data Appendix – Definitions & Reconciliations Same Store vs Non-Same Store Properties Reconciliation to Property Portfolio NOI Reconciliation to GAAP Net Income Forward Looking Statements Corporate Profile Highlights Summary Information Summary Balance Sheet Summary Income Statement FFO, Normalized FFO & Adjusted FFO Outstanding Debt Core Debt to Core EBITDA Debt Information Capitalization & Financial Ratios Property Portfolio Development Pipeline Acquisitions & Dispositions Construction Business Summary 19 20 21 22 23 24 25 26 30 31 33 9 10 11 12 13 14 16 17 18 3 4 5 6 7 8

3 Forward Looking Statements This Supplemental Information should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated February 9, 2017, which has been furnished as Exhibit 99.1 to our Form 8-K filed on February 9, 2017. The Company makes statements in this Supplemental Information that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). In particular, statements pertaining to our capital resources, portfolio performance and results of operations contain forward-looking statements. Likewise, all of our statements regarding anticipated growth in our funds from operations, normalized funds from operations, adjusted funds from operations, funds available for distribution and net operating income are forward-looking statements. You can identify forward- looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “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, estimates, data or methods, which may be incorrect or imprecise, and actual results may vary materially from those anticipated, estimated or projected. The Company does not guarantee that the transactions and events described will happen as described (or that they will happen at all). For further discussion of risk factors and other events that could impact our future results, please refer to the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), and the documents subsequently filed by us from time to time with the SEC.

Analyst Coverage 4 Corporate Profile Armada Hoffler Properties, Inc. (NYSE:AHH) is a full service real estate company that develops, constructs and owns institutional grade office, retail and multifamily properties in the Mid-Atlantic United States. The Company also provides general contracting and development services to third-party clients throughout the Mid-Atlantic and Southeastern regions. Armada Hoffler Properties, Inc. was founded in 1979 and is headquartered in Virginia Beach, VA. The Company has elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. Board of Directors Corporate Officers Investor Relations Daniel A. Hoffler A. Russell Kirk Louis S. Haddad John W. Snow George F. Allen James A. Carroll James C. Cherry Eva S. Hardy Executive Chairman of Board Vice Chairman of the Board Director Lead Independent Director Independent Director Independent Director Independent Director Independent Director Louis S. Haddad Michael P. O’?ara Eric L. Smith Eric E. Apperson Shelly R. Hampton President and Chief Executive Officer Chief Financial Officer and Treasurer Chief Investment Officer and Corporate Secretary President of Construction President of Asset Management Michael P. O’?ara Chief Financial Officer and Treasurer (757) 366-6684 mohara@armadahoffler.com Janney, Montgomery, & Scott LLC Robert Stevenson (646) 840-3217 robertstevenson@janney.com Raymond James & Associates Bill Crow (727) 567-2594 bill.crow@raymondjames.com D. A. Davidson & Co. James O. Lykins (503) 603-3041 jlykins@dadco.com Robert W. Baird & Co. David Rodgers (216) 737-7341 drodgers@rwbaird.com Stonegate Capital Partners Laura Engel (214) 987-4121 laura@stonegateinc.com Stifel, Nicolaus & Company, Inc. John Guinee (443) 224-1307 jwguinee@stifel.com Wunderlich Securities Craig Kucera (540) 277-3366 ckucera@wundernet.com

5 Highlights • Net income of $5.1 million, or $0.09 per diluted share, for the quarter ended December 31, 2016 compared to net income of $8.4 million, or $0.19 per diluted share, for the quarter ended December 31, 2015. Net income of $42.8 million, or $0.85 per diluted share, for the year ended December 31, 2016 compared to net income of $31.2 million, or $0.75 per diluted share, for the year ended December 31, 2015. • Normalized Funds From Operations (“FFO”) of $13.7 million, or $0.25 per diluted share, for the quarter ended December 31, 2016 compared to Normalized FFO of $10.6 million, or $0.24 per diluted share, for the quarter ended December 31, 2015. Normalized FFO of $50.9 million, or $1.01 per diluted share, for the year ended December 31, 2016 compared to Normalized FFO of $38.7 million, or $0.93 per diluted share, for the year ended December 31, 2015. • FFO of $14.7 million, or $0.27 per diluted share, for the quarter ended December 31, 2016 compared to FFO of $9.6 million, or $0.22 per diluted share, for the quarter ended December 31, 2015. FFO of $48.0 million, or $0.96 per diluted share, for the year ended December 31, 2016 compared to FFO of $35.9 million, or $0.87 per diluted share, for the year ended December 31, 2015. • Introduced 2017 full-year Normalized FFO guidance in the range of $0.99 to $1.03 per diluted share, as illustrated in a presentation that was distributed this morning and can be found on the Company's website at www.ArmadaHoffler.com. The Company's executive management will provide further details regarding its 2017 earnings guidance during today's webcast and conference call. • Announced that its Board of Directors declared a cash dividend of $0.19 per common share for the first quarter of 2017, representing a 5.6% increase over the prior quarter’s cash dividend and the third increase in three years totaling approximately 19% dividend growth. • Same Store Net Operating Income (“NOI”) increased for the tenth consecutive quarter. • Core operating property portfolio occupancy at 94.3% compared to 95.3% as of December 31, 2015. The decrease in occupancy is primarily due to existing tenants within Town Center expanding and relocating to our 4525 Main Street tower, which is a non-core office property. • Agreed to develop, build and own a 100,000 square foot office tower anchored by Newport News Shipbuilding, a division of Huntington Ingalls Industries (NYSE:HII), as part of an ongoing public-private partnership with the City of Newport News on the Brooks Crossing development project. • Closed on the acquisition of Columbus Village II, a 92,000 square foot retail and entertainment center adjacent to the Town Center of Virginia Beach, Virginia. Combined with Columbus Village I, which was acquired in 2015, the resulting contiguous 12 acres are a prime target for redevelopment and ultimate integration into the dynamic Town Center environment. • Closed on the acquisition of Renaissance Square, an 80,000 square foot Harris Teeter-anchored retail center located in the greater Charlotte area of North Carolina. • Added to the MSCI U.S REIT Index (RMZ) effective as of the close of the market on November 30, 2016.

6 Summary Information $ in thousands, except per share data Three months ended 12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015 OPERATIONAL METRICS Net income $5,145 $7,946 $3,131 $26,533 $8,443 Net income per diluted share $0.09 $0.15 $0.06 $0.57 $0.19 Rental properties Net Operating Income (NOI) 18,304 17,115 16,798 15,605 14,713 General contracting and real estate services gross profit 1,436 1,278 1,175 1,766 1,106 Adjusted EBITDA (1) 18,097 16,720 16,077 14,406 12,903 Funds From Operations (FFO) 14,744 13,078 11,720 8,438 9,618 FFO per diluted share $0.27 $0.25 $0.24 $0.18 $0.22 Normalized FFO 13,669 13,156 12,530 11,566 10,614 Normalized FFO per diluted share $0.25 $0.26 $0.26 $0.25 $0.24 Annualized dividend yield 4.94% 5.37% 5.24% 6.40% 6.49% CAPITALIZATION Total common shares outstanding 37,491 34,256 32,825 31,095 30,076 Operating Partnership ("OP") units outstanding 17,793 17,793 17,597 16,027 16,027 Common shares and OP units outstanding 55,284 52,049 50,422 47,122 46,103 Market price per common share $14.57 $13.40 $13.74 $11.25 $10.48 Equity market capitalization(2) $805,488 $697,457 $692,798 $530,123 $483,159 Total debt(3) 527,082 519,209 512,702 471,876 382,013 Total market capitalization 1,332,570 1,216,666 1,205,500 1,001,999 865,172 Less: cash (25,193) (27,361) (23,142) (22,505) (29,813) Total enterprise value $1,307,377 $1,189,305 $1,182,358 $979,494 $835,359 BALANCE SHEET METRICS Core Debt/enterprise value 31.7% 34.3% 35.4% 40.1% 37.0% Fixed charge coverage ratio 3.3x 3.4x 3.3x 3.1x 3.1x Core Debt/Annualized Core EBITDA 6.3x 6.4x 6.7x 6.9x 6.1x CORE PORTFOLIO OCCUPANCY Office (4) 89.9% 96.4% 94.6% 95.0% 95.8% Retail (4) 95.8% 96.4% 96.0% 95.1% 95.5% Multifamily(5) 94.3% 95.8% 94.3% 93.5% 94.2% Weighted Average (6) 94.3% 96.2% 95.3% 94.7% 95.3% (1) Excludes gains on dispositions of real estate and mark-to-market adjustments on interest rate derivatives (2) Includes common shares and OP units (3) Excludes unamortized GAAP adjustments (4) Office and retail occupancy based on leased square feet as a % of respective total (5) Multifamily occupancy based on occupied units as a % of respective total (6) Total occupancy weighted by annualized base rent

7 Summary Balance Sheet $ in thousands 12/31/2016 12/31/2015 Assets (Unaudited) Real estate investments: Income producing property $894,078 $579,000 Held for development 680 1,180 Construction in progress 13,529 53,411 Accumulated depreciation (139,553) (125,380) Net real estate investments 768,734 508,211 Real estate investments held for sale - 40,232 Cash and cash equivalents 21,942 26,989 Restricted cash 3,251 2,824 Accounts receivable, net 15,052 21,982 Notes receivable 59,546 7,825 Construction receivables, including retentions 39,433 36,535 Costs and estimated earnings in excess of bil l ings 110 88 Equity method investments 10,235 1,411 Other assets 64,165 43,450 Total Assets $982,468 $689,547 Liabilities and Equity Indebtedness, net $522,180 $377,593 Accounts payable and accrued liabilities 10,804 6,472 Construction payables, including retentions 51,130 52,067 Bil l ings in excess of costs and estimated earnings 10,167 2,224 Other l iabilities 39,209 25,471 Total Liabilities 633,490 463,827 Total Equity 348,978 225,720 Total Liabilities and Equity $982,468 $689,547 As of

8 Summary Income Statement Amounts in thousands, except per share data Three months ended Year Ended 12/31/2016 12/31/2015 12/31/2016 12/31/2015 Revenues (Unaudited) (Unaudited) Rental revenues $26,516 $21,771 $99,355 $81,172 General contracting and real estate services 50,475 41,309 159,030 171,268 Total Revenues 76,991 63,080 258,385 252,440 Expenses Rental expenses 5,670 4,948 21,904 19,204 Real estate taxes 2,542 2,110 9,629 7,782 General contracting and real estate services 49,039 40,203 153,375 165,344 Depreciation and amortization 9,692 6,162 35,328 23,153 General and administrative 2,688 2,100 9,552 8,397 Acquisition, development & other pursuit costs 77 885 1,563 1,935 Impairment charges 171 18 355 41 Total Expenses 69,879 56,426 231,706 225,856 Operating Income 7,112 6,654 26,679 26,584 Interest income 1,300 126 3,228 126 Interest expense (4,573) (3,411) (16,466) (13,333) Loss on extinguishment of debt - (102) (82) (512) Gain on real estate dispositions 93 4,987 30,533 18,394 Change in fair value of interest rate derivatives 1,323 9 (941) (229) Other income (loss) (7) 63 147 119 Income before taxes 5,248 8,326 43,098 31,149 I come tax benefit (provision) (103) 117 (343) 34 Net Income $5,145 $8,443 $42,755 $31,183 Per Diluted Share $0.09 $0.19 $0.85 $0.75 Weighted Average Shares-Diluted 54,258 43,438 50,224 41,383

(1) See definitions on pages 27-28 (2) Excludes gain on non-operating real estate of $430K for the three months ended 3/31/2016 and year ended 12/31/16 (3) Excludes first generation rental space 9 FFO, Normalized FFO & Adjusted FFO(1) $ in thousands, except per share data Three months ended Year Ended December 31, 12/31/2016 9/30/2016 6/30/2016 3/31/2016 2016 2015 Funds From Operations (Unaudited) (Unaudited) Net income $5,145 $7,946 $3,131 $26,533 $42,755 $31,183 Earnings per diluted share $0.09 $0.15 $0.06 $0.57 $0.85 $0.75 Depreciation and amortization 9,692 8,885 8,602 8,149 35,328 23,153 Gain on disposition of operating real estate(2) (93) (3,753) (13) (26,244) (30,103) (18,394) FFO $14,744 $13,078 11,720 $8,438 $47,980 $35,942 FFO per diluted share $0.27 $0.25 $0.24 $0.18 $0.96 $0.87 Normalized FFO Acquisition, development & other pursuit costs 77 345 437 704 1,563 1,935 Loss on extinguishment of debt - 82 - - 82 512 Impairment charges 171 149 - 35 355 41 Change in fair value of interest rate derivatives (1,323) (498) 373 2,389 941 229 Normalized FFO $13,669 $13,156 $12,530 $11,566 $50,921 $38,659 Normalized FFO per diluted share $0.25 $0.26 $0.26 $0.25 $1.01 $0.93 Adjusted FFO Non-cash stock compensation 218 212 215 437 1,082 931 Acquisition, development & other pursuit costs (77) (345) (437) (704) (1,563) (1,935) Tenant improvements, leasing commissions (3) (507) (233) (1,365) (287) (2,392) (2,741) Property related capital expenditures (434) (514) (603) (390) (1,941) (1,718) Non-cash interest expense 293 219 277 191 980 1,006 Net effect of straight-line rents (246) (158) (194) (122) (720) (1,634) Amortization of leasing incentives & above (below) market rents (24) 116 (183) 6 (85) 738 Government development grants - - - - - 300 AFFO $12,892 $12,453 $10,240 $10,697 $46,282 $33,606 Weighted Average Common Shares Outstanding 36,465 33,792 31,736 30,191 33,057 26,006 Weighted Average Operating Partnership ("OP") Units Outstanding 17,793 17,720 17,113 16,027 17,167 15,377 Total Weighted Average Common Shares and OP Units Outstanding 54,258 51,512 48,849 46,218 50,224 41,383

10 Outstanding Debt $ in thousands 30 Day LIBOR as of 12/31/2016 0.772%(1) Subject to an interest rate swap lock. (2) Includes debt subject to interest rate swap locks. (3) Excludes debt subject to interest rate swap locks. Debt Maturities & Principal Payments Debt Stated Rate Effective Rate as of 12/31/2016 Maturity Date 2017 2018 2019 2020 2021 Thereafter Amount Outstanding as of 12/31/2016 Secured Notes Payable - Core Debt North Point Note 5 L+2.00% 3.57% (1) 2/1/2017 $643 $643 Harrisonburg Regal 6.06% 6.06% 6/8/2017 3,256 3,256 Commonwealth of Virginia - Chesapeake L+1.90% 2.67% 8/28/2017 4,933 4,933 Hanbury Village 6.67% 6.67% 10/11/2017 20,709 20,709 Sandbridge Commons L+1.85% 2.62% 1/17/2018 247 9,129 9,376 Columbus Village Note 1 L+2.00% 3.05% (1) 4/5/2018 178 6,080 6,258 Columbus Village Note 2 L+2.00% 2.77% 4/5/2018 48 2,218 2,266 North Point Center Note 1 6.45% 6.45% 2/5/2019 205 219 9,352 9,776 Southgate Square L+2.00% 2.77% 4/29/2021 391 539 561 584 19,075 21,150 249 Central Park Retail L+1.95% 2.72% 8/8/2021 229 229 243 258 16,117 17,076 South Retail L+1.95% 2.72% 8/8/2021 100 101 107 113 7,072 7,493 Fountain Plaza Retail L+1.95% 2.72% 8/8/2021 137 138 147 156 9,703 10,281 Encore Apartments 3.25% 3.25% 9/10/2021 124 504 24,338 24,966 Socastee Commons 4.57% 4.57% 1/6/2023 94 100 105 109 115 4,343 4,866 North Point Center Note 2 7.25% 7.25% 9/15/2025 106 113 121 130 140 1,954 2,564 Smith's Landing 4.05% 4.05% 6/1/2035 754 791 824 858 890 16,394 20,511 Liberty Apartments 5.66% 5.66% 11/1/2043 326 344 364 385 415 18,171 20,005 The Cosmopolitan 3.75% 3.75% 7/1/2051 660 686 712 739 767 42,320 45,884 Total - Secured Core Debt $33,016 $20,687 $12,660 $3,836 $78,632 $83,182 $232,013 Secured Notes Payable - Development Pipeline 4525 Main Street 3.25% 3.25% 9/10/2021 158 646 31,230 32,034 Lightfoot Marketplace L+1.90% 2.67% 11/14/2017 12,194 12,194 Johns Hopkins Village L+1.90% 2.67% 7/30/2018 43,841 43,841 Total - Development Pipeline 12,194 43,841 158 646 31,230 - 88,069 Total Secured Notes Payable $45,210 $64,528 $12,818 $4,482 $109,862 $83,182 $320,082 Unsecured Core Debt Senior unsecured line of credit L+1.40% - 2.00% 2.32% 2/20/2019 107,000 107,000 Senior unsecured term loan L+1.35% - 1.95% 2.27% 2/20/2020 50,000 50,000 Senior unsecured term loan L+1.35% - 1.95% 3.50% (1) 2/20/2020 50,000 50,000 Total - Unsecured Core Debt - - 107,000 100,000 - - 207,000 Total Notes Payable excluding GAAP Adjustments $45,210 $64,528 $119,818 $104,482 $109,862 $83,182 $527,082 Weighted Average Interest Rate 4.9% 2.8% 2.7% 2.9% 3.0% 4.4% 3.3% Balloon Payments 41,432 60,873 116,333 100,000 106,274 5,567 430,479 Principal amortization 3,778 3,655 3,485 4,482 3,588 77,615 96,603 Total Consolidated Debt $45,210 $64,528 $119,818 $104,482 $109,862 $83,182 $527,082 Fixed-rate Debt(2) 26,931 8,333 11,760 53,371 57,895 83,182 241,472 Variable-rate Debt(3) 18,279 56,195 108,058 51,111 51,967 - 285,610 Total Consolidated Debt $45,210 $64,528 $119,818 $104,482 $109,862 83,182 $527,082 GAAP Adjustments (4,902) Total Notes Payable $522,180

11 Core Debt to Core EBITDA(1) $ in thousands Three months ended 12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015 Net Income $5,145 $7,946 $3,131 $26,533 $8,443 Excluding: Interest expense 4,573 4,124 3,978 3,791 3,411 Income tax 103 16 6 218 (117) Depreciation and amortization 9,692 8,885 8,602 8,149 6,162 Gain on real estate dispositions (93) (3,753) (13) (26,674) (4,987) Change in fair value of interest rate derivatives (1,323) (498) 373 2,389 (9) Adjusted EBITDA $18,097 $16,720 $16,077 $14,406 $12,903 Other adjustments: Loss on extinguishment of debt - 82 - - 102 Non-cash stock compensation 218 212 215 437 176 Development Pipeline (1,917) (1,058) (719) (620) (606) Total Other Adjustments (1,699) (764) (504) (183) (328) Core EBITDA $16,398 $15,956 $15,573 $14,223 $12,575 Total Debt(2) $527,082 $519,209 $512,702 $471,876 $382,013 Adjustments to Debt: (Less) Development Pipeline(2) (88,069) (84,321) (71,035) (56,592) (43,340) (Less) Cash & restricted cash (25,193) (27,361) (23,142) (22,505) (29,813) Core Debt $413,820 $407,527 $418,525 $392,779 $308,860 Core Debt/Annualized Core EBITDA 6.3x 6.4x 6.7x 6.9x 6.1x (1) See definitions on page 29 (2) Excludes GAAP Adjustments

12 Debt Information $ in thousands (1) Excludes debt subject to interest rate swap locks. (2) Includes debt subject to interest rate swap locks. (3) Excludes GAAP adjustments. Fixed-rate& Hedged Debt 97% Total Debt Composition Weighted Average Percent of Debt Interest Rate Maturity Secured vs. Unsecured Debt Unsecured Debt 39.3% 2.6% 2.6 Yrs Secured Debt 60.7% 3.7% 10.0 Yrs Variable vs. Fixed-rate Debt Variable-rate Debt(1) 54.2% 2.5% 2.6 Yrs Fixed-rate Debt(2)(3) 45.8% 4.2% 12.5 Yrs Fixed-rate and Hedged Debt(2)(3) 97.0% Total 3.3% 7.1 Yrs Interest Rate Cap Agreements At or Below 1.50% Effective Date Maturity Date Strike Rate Notional Amount March 14, 2014 March 1, 2017 1.25% $50,000 October 26, 2015 October 15, 2017 1.25% 75,000 March 1, 2016 March 1, 2018 1.50% 75,000 June 17, 2016 June 17, 2018 1.00% 70,000 Total Interest Rate Caps at or Below 1.50% $270,000 Fixed-rate Debt (2)(3) 241,472 Fixed-rate and Hedged Debt $511,472 % of Total (3) 97.0% $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 2017 2018 2019 2020 2021 2022 and thereafter ($ In Th ou sa nd s) Debt turities & Principal Payments

13 Capitalization & Financial Ratios $ in thousands Capitalization as of December 31, 2016 Capital Structure as of December 31, 2016 Debt % of Total Carrying Value Unsecured Credit Facility 20% $107,000 Unsecured Term Loans 19% 100,000 Mortgages Payable 61% 320,082 Total Debt $527,082 Equity % of Total Shares/Units Stock Price Market Value Common Stock (NYSE: AHH) 68% 37,491 $14.57 $546,244 Common Units 32% 17,793 $14.57 259,244 Equity Market Capitalization 55,284 $805,488 Total Market Capitalization $1,332,570 Debt/Market Capitalization 39.6% Dividend Data Liquidity as of December 31, 2016 Trailing 12 Months Common Dividends and Distributions $33,843 Cash on Hand $25,193 AFFO $46,282 Availability under Credit Facility(1) 68,000 AFFO Payout Ratio 73.1% $93,193 Debt 40%Equity 60% (1) Credit Facility expanded to $275M following the close of the quarter

14 Property Portfolio As of 12/31/16 (1) The net rentable square footage for each of our retail properties is the sum of (a) the square footage of existing leases, plus (b) for available space, the field verified square footage. (2) Occupancy for each of our retail properties is calculated as (a) square footage under executed leases as of December 31, 2016, divided by (b) net rentable square feet, expressed as a percentage. (3) For the properties in our retail portfolio, annualized base rent, or ABR, is calculated by multiplying (a) base rental payments for executed leases as of December 31, 2016 (defined as cash base rents before abatements) excluding tenant reimbursements for expenses paid by the landlord), by (b) 12. ABR per leased square foot is calculated by dividing (a) ABR, by (b) square footage under executed leases as of December 31, 2016 . In the case of triple net or modified gross leases, ABR does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses. Excludes the square footage of land subject to ground leases. (4) As of December 31, 2016, the Company occupied 8,995 square feet at this property at an ABR of $304,841, or $33.89 per leased square foot, which amounts are reflected in this table. The rent paid by us is eliminated in accordance with GAAP. (5) Includes $32,760 of ABR pursuant to a rooftop lease. Property Anchor Tenant Location Town Center Unencumbered ABR Year Built Core Properties Development Properties Net Rentable Square Feet(1) Core Occupancy (2) Development Leased(2) ABR (3) ABR per Leased SF(3) Retail Properties - Excluding Properties Subject to Ground Lease 249 Central Park Retail (4) Cheesecake Factory, Brooks Brothers, Gordon Biersch Virginia Beach, VA  - 2004 91,366 - 91,366 89.8% - $2,376,820 $28.98 Alexander Pointe Harris Teeter Salisbury, NC 100% 1997 57,710 - 57,710 97.6% - 649,530 11.53 Bermuda Crossroads Food Lion, OfficeMax Chester, VA 100% 2001 111,566 - 111,566 93.1% - 1,519,843 14.63 Broad Creek Shopping Center Home Depot, Food Lion, PetSmart Norfolk, VA 100% 1997/2001 227,659 - 227,659 99.3% - 3,188,069 14.10 Broadmoor Plaza Kroger, Staples, Jo-Ann Fabrics South Bend, IN 100% 1980 115,059 - 115,059 93.2% - 1,267,990 11.82 Brooks Crossing Various Small Shops Newport News, VA 100% 2016 - 18,343 18,343 - 59.8% 151,380 13.80 Columbus Village Barnes & Noble Virginia Beach, VA  - 1980/2013 66,594 - 66,594 93.5% - 1,200,454 19.27 Columbus Village II Regal Cinemas, BB&B Virginia Beach, VA  100% 1995/1996 92,061 - 92,061 100.0% - 1,575,991 17.12 Commerce Street Retail (5) Yard House Virginia Beach, VA  100% 2008 19,173 - 19,173 100.0% - 848,540 44.26 Courthouse 7-Eleven 7-Eleven Virginia Beach, VA 100% 2011 3,177 - 3,177 100.0% - 125,015 39.35 Dick's at Town Center Dick's Sporting Goods, USI Virginia Beach, VA  100% 2002 103,335 - 103,335 100.0% - 1,231,340 11.92 Dimmock Square Best Buy, Old Navy Colonial Heights, VA 100% 1998 106,166 - 106,166 97.2% - 1,736,216 16.83 Fountain Plaza Retail Ruth's Chris, Ann Taylor Virginia Beach, VA  - 2004 35,961 - 35,961 100.0% - 1,022,629 28.44 Gainsborough Square Food Lion, Rite Aid Chesapeake, VA 100% 1999 88,862 - 88,862 90.7% - 1,220,121 15.14 Greentree Shopping Center Wawa Chesapeake, VA 100% 2014 15,751 - 15,751 85.7% - 285,941 21.17 Hanbury Village Walgreens, Starbucks Chesapeake, VA 32% 2006/2009 61,049 - 61,049 92.8% - 1,355,478 23.92 Harper Hill Commons Harris Teeter Winston-Salem, NC 100% 2004 55,394 - 55,394 65.9% - 518,400 14.19 Harrisonburg Regal Regal Cinemas Harrisonburg, VA - 1999 49,000 - 49,000 100.0% - 683,550 13.95 Lightfoot Marketplace Harris Teeter Williamsburg, VA - 2016 - 56,043 56,043 - 49.2% 601,665 21.80 North Hampton Market PetSmart, Hobby Lobby, Dollar Tree Taylors, SC 100% 2004 114,935 - 114,935 97.2% - 1,397,423 12.51 North Point Center Kroger, PetSmart, BB&B, Costco Durham, NC 52% 1998/2009 215,690 - 215,690 99.3% - 2,583,835 12.06 Oakland Marketplace Kroger Oakland, TN 100% 2004 19,600 - 19,600 85.7% - 252,280 15.02 Parkway Marketplace Rite Aid Virginia Beach, VA 100% 1998 37,804 - 37,804 95.2% - 716,852 19.91 Patterson Place BB&B, PetSmart Durham, NC 100% 2004 160,942 - 160,942 96.8% - 2,443,501 15.69 Perry Hall Marketplace Safeway Perry Hall, MD 100% 2001 74,256 - 74,256 100.0% - 1,243,444 16.75 Providence Plaza Edward Jones, Chipotle, Choate Const. Charlotte, NC 100% 2007/2008 103,118 - 103,118 97.4% - 2,564,010 25.52 Renaissance Square Harris Teeter Davidson, NC 2008 80,467 - 80,467 92.2% - 1,281,142 17.26 Sandbridge Commons Heartland Dental Virginia Beach, VA - 2015 16,129 - 16,129 100.0% - 327,710 20.32 Socastee Commons Bi-Lo Myrtle Beach, SC - 2000/2014 57,273 - 57,273 97.4% - 633,672 11.36 South Retail lululemon, free people Virginia Beach, VA  - 2002 38,515 - 38,515 84.9% - 879,870 26.89 South Square Ross, Petco, Office Depot Durham, NC 100% 1977/2005 107,812 - 107,812 100.0% - 1,829,556 16.97 Southgate Square Burlington, PetSmart, Michaels Colonial Heights, VA - 1991/2016 220,131 - 220,131 96.3% - 2,812,549 13.27 Southshore Shops Buffalo Wild Wings Midlothian, VA 100% 2006 40,333 - 40,333 93.1% - 737,009 19.63 Stone House Square Weis Markets Hagerstown, MD 100% 2008 108,624 - 108,624 90.4% - 1,567,631 15.96 Studio 56 Retail McCormick & Schmick's Virginia Beach, VA  100% 2007 11,594 - 11,594 100.0% - 375,632 32.40 Waynesboro Commons Kroger Waynesboro, VA 100% 1993 52,415 - 52,415 100.0% - 438,464 8.37 Wendover Village BB&B, T.J. Maxx, Petco Greensboro, NC 100% 2004 135,758 - 135,758 100.0% - 1,955,629 14.41 Total / Weighted Avg Retail Portfolio 69% 2,895,279 74,386 2,969,665 95.8% 51.9% $45,599,181 $16.21

Net Rentable Square Feet (RSF)(1) Property Anchor Tenant Location Town Center Unencumbered ABR Year Built Core Properties Development Properties Total Core Occupancy (2) Development Leased(2) ABR (3) ABR per Leased SF(3) Office Properties 4525 Main Street Clark Nexsen, Anthropologie, West Elm Virginia Beach, VA  - 2014 - 237,893 237,893 - 76.7% $5,096,663 $27.93 Armada Hoffler Tower(4) AHH, Troutman Sanders, Will iams Mullen Virginia Beach, VA  100% 2002 324,242 - 324,242 96.9% - 8,947,379 28.49 Commonwealth of VA - Chesapeake Commonwealth of VA Chesapeake, VA - 2015 36,227 - 36,227 100.0% - 645,927 17.83 Commonwealth of VA - Virginia Beach Commonwealth of VA Virginia Beach, VA 100% 2015 11,139 - 11,139 100.0% - 245,058 22.00 One Columbus BB&T, HBA Virginia Beach, VA  100% 1984 129,272 - 129,272 80.2% - 2,582,506 24.90 Two Columbus The Art Institute, Kimley-Horn Virginia Beach, VA  100% 2009 108,467 - 108,467 76.5% - 2,176,255 26.24 Total / Weighted Average Office Portfolio 71% 609,347 237,893 847,240 89.9% 76.7% $19,693,788 $26.96 Properties Subject to Ground Lease Bermuda Crossroads (5) IHOP, O'Charley's Chester, VA - 2001 11,000 - 11,000 100.0% - $163,350 $14.85 Broad Creek Shopping Center (6) 7-Eleven, Ruby Tuesdays, Home Depot Norfolk, VA - 1997/2001 24,818 - 24,818 100.0% - 607,081 24.46 Greentree Shopping Center Wawa Chesapeake, VA - 2014 5,088 - 5,088 100.0% - 230,004 45.21 Hanbury Village(5) Harris Teeter, Walgreens Chesapeake, VA - 2006/2009 55,586 - 55,586 100.0% - 1,067,598 19.21 Harper Hill Commons (5) Harris Teeter Winston-Salem, NC 100% 2004 41,520 - 41,520 100.0% - 373,680 9.00 Lightfoot Marketplace(5) Harris Teeter Williamsburg, VA - 2016 - 51,750 51,750 - 100.0% 660,771 12.77 North Point Center(5) Home Depot, Costco Durham, NC 15% 1998/2009 280,556 - 280,556 100.0% - 1,083,666 3.86 Oakland Marketplace(5) Kroger Oakland, TN 100% 2004 45,000 - 45,000 100.0% - 186,300 4.14 Sandbridge Commons (5) Harris Teeter Virginia Beach, VA - 2015 53,288 - 53,288 100.0% - 583,000 10.94 South Square(5) Chick-fil-A Durham, NC 100% 1977/2005 1,778 - 1,778 100.0% - 60,000 33.75 Stone House Square(5) Capitol One Bank Hagerstown, MD 100% 2008 3,650 - 3,650 100.0% - 165,000 45.21 Tyre Neck Harris Teeter(6) Harris Teeter Portsmouth, VA 100% 2011 48,859 - 48,859 100.0% - 508,134 10.40 Total / Weighted Avg Retail Portfolio Subject to Ground Leases 26% 571,143 51,750 622,893 100.0% 100.0% $5,688,584 $9.13 Units Multifamily Location Town Center Unencumbered ABR Year Built Core Properties Development Properties Total Core Occupancy (2) Development Occupancy(2) ABR (7) ABR per Occupied RSF(8) Encore Apartments Virginia Beach, VA  - 2014 286 - 286 94.4% - $4,130,448 $1.76 Johns Hopkins Village(9)(10) Baltimore, MD - 2016 - 157 157 - 76.4% 5,916,960 2.78 Liberty Apartments (9) Newport News, VA - 2013 197 - 197 91.2% - 2,263,236 1.42 Smith's Landing(10) Blacksburg, VA - 2009 284 - 284 98.9% - 3,653,952 1.14 The Cosmopolitan (9) Virginia Beach, VA  - 2006 342 - 342 92.1% - 6,013,536 1.65 Total / Weighted Avg Multifamily Portfolio - 1,109 157 1,266 94.3% 76.4% $21,978,132 $1.70 15 Property Portfolio - Continued As of 12/31/16 (1) The net rentable square footage for each of our office properties is the sum of (a) the square footage of existing leases, plus (b) for available space, management’s estimate of net rentable square footage based, in part, on past leases. The net rentable square footage included in office leases is generally consistent with the Building Owners and Managers Association, or BOMA, 1996 measurement guidelines. (2) Occupancy for each of our office properties is calculated as (a) square footage under executed leases as of December 31, 2016, divided by (b) net rentable square feet, expressed as a percentage. Occupancy for our multifamily properties is calculated as (a) total units occupied as of December 31, 2016, divided by (b) total units available, expressed as a percentage. (3) For the properties in our office portfolio, annualized base rent, or ABR, is calculated by multiplying (a) base rental payments for executed leases as of December 31, 2016 (defined as cash base rents (before abatements) excluding tenant reimbursements for expenses paid by the landlord), by (b) 12. ABR per leased square foot is calculated by dividing (a) ABR, by (b) square footage under executed leases as of December 31, 2016. In the case of triple net or modified gross leases, ABR does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses. (4) As of December 31, 2016, the Company occupied 21,942 square feet at this property at an ABR of $688,788 or $30.48 per leased square foot, which amounts are reflected in this table. The rent paid by us is eliminated in accordance with GAAP. (5) Pursuant to this ground lease, the Company owns the land and the tenant owns the improvements thereon. The Company will succeed to the ownership of the improvements to the land upon the termination of the ground lease. (6) The Company leases the land underlying this property and re-leases it to our tenant under a ground lease pursuant to which our tenant owns the improvements on the land. (7) For the properties in our multifamily portfolio, annualized base rent, or ABR, is calculated by multiplying (a) base rental payments for the month ended December 31, 2016 by (b) 12. (8) ABR per occupied rentable square foot is calculated by dividing (a) ABR, by (b) net rentable square footage of occupied units as of December 31, 2016. (9) The ABR for Liberty, Cosmopolitan, Johns Hopkins Village excludes $212,000, $970,000, $1,159,000 from ground floor retail leases, respectively. (10) The Company leases the land underlying this property pursuant to a ground lease.

16 Development Pipeline $ in thousands Johns Hopkins Village Lightfoot Marketplace One City Center Point Street Apts. (1) Represents estimates that may change as the development process proceeds (2) First full stabilized quarter (3) AHH earns a preferred return on equity prior to any distributions to JV Partners (4) Signed letter of intent Q4 2016 Year to Date Capitalized Interest $119 $1,046 Capitalized Overhead $559 $1,704 Schedule(1) Development, Not Delivered Property Type Estimated(1) % Leased Start Initial Occupancy Stabilized Operation (2) Estimated Cost(1) Cost to Date AHH Ownership % Anchor Tenants & Other Notes Harding Place Charlotte, NC Multifamily 225 Units NA 3Q16 3Q18 1Q20 $45,000 $8,000 80%(3) NA Town Center Phase VI Virginia Beach, VA Mixed-use 39,000 SF 130 Units 46% 4Q16 3Q18 3Q19 42,000 3,000 100% Anchor tenants not yet announced Brooks Crossing Newport News, VA Office 100,000 sf NA 3Q16 4Q18 4Q18 20,000 - 65%(3) Huntington Ingalls Industries (4) Total Development, Not Delivered 107,000 11,000 Development, Delivered Not Stabilized Brooks Crossing Newport News, VA Retail 18,000 sf 60% 3Q15 3Q16 4Q16 3,000 3,000 65%(3) Misc. small shops 4525 Main Street Virginia Beach, VA Office 239,000 sf 77% 1Q13 3Q14 2Q17 51,000 46,000 100% Clark Nexsen, Development Authority of Virginia Beach, Anthropologie Johns Hopkins Village Baltimore, MD Multifamily 157 units 76% 1Q15 3Q16 3Q17 68,000 67,000 80%(3) CVS Lightfoot Marketplace Will iamsburg, VA Retail 109,000 sf 71% 3Q14 3Q16 2Q17 24,000 23,000 70%(3) Harris Teeter, CHKD Total Development, Delivered Not Stabilized 146,000 139,000 Total $253,000 $150,000 Joint Ventures - Minority Partner Project Cost Equity Investment One City Center - 37% JV Durham, NC Mixed-use 152,000 sf 36% 1Q16 2Q18 2Q19 $36,000 $10,000 100% Duke University AHH Equity requirement $10M Mezzanine Investments Purchase Option Price Loan Balance Point Street Apartments Baltimore, MD Multifamily 289 units NA 1Q16 4Q17 1Q19 $92,000 $20,600 Option to purchase 88% upon completion $23M Mezzanine financing by AHH, earning 8% interest income Annapolis Junction Annapolis Junction, MD Multifamily 416 units NA 2Q16 3Q17 2Q19 102,000 39,000 Option to purchase 88% upon completion $42M Mezzanine financing by AHH, earning 10% interest income Total Mezzanine Investment $194,000 $59,600

17 Acquisitions & Dispositions $ in thousands (1) Contractual purchase price (2) Value of OP Units/Stock at issuance (3) Anchor tenant vacated 9/30/16, which would represent a 2.5% Cash Cap Rate ACQUISITIONS Properties Location Square Feet Purchase Price (1) Reinvested 1031 Proceeds $ Value of OP Units/Stock (2) Cash Cap Rate Purchase Date % Leased as of 12/31/16 Anchor Tenants Renaissance Square Davidson, NC 80,468 $17,085 - - 7.1% 4Q16 92% Harris Teeter Columbus Vill iage II Virginia Beach, VA 92,061 $26,200 - $26,200 5.6% 4Q16 100% Regal, Bed Bath & Beyond Southshore Shops Midlothian, VA 40,333 $9,160 - $2,475 7.8% 3Q16 93% Buffalo Wild Wings Southgate Square Colonial Heights, VA 220,131 $38,585 - $17,485 7.3% 2Q16 96% PetSmart, Michael's, Burlington Retail Portfolio (11 properties) Mid-Atlantic 1,082,681 $170,500 $87,000 - 7.2% 1Q16 95% Harris Teeter, Bed Bath & Beyond Providence Plaza Charlotte, NC 103,118 $26,200 $14,000 - 7.3% 3Q15 97% Chipotle Socastee Commons Myrtle Beach, SC 57,573 $8,600 $3,600 - 7.3% 3Q15 97% BiLo Columbus Village Virginia Beach, VA 65,746 $21,025 - $14,025 6.4% 3Q15 94% Barnes & Noble Perry Hall Marketplace & Stone House Square Maryland 182,949 $39,555 $15,200 $4,155 7.4% 2Q15 98% Safeway & Weis Markets Dimmock Square Colonial Heights, VA 106,166 $19,662 - $9,662 7.3% 3Q14 97% Old Navy, Best Buy, Pier 1 Total/Weighted Average 2,031,226 $376,572 $119,800 $74,002 7.1% DISPOSITIONS Properties Location Square Feet/Units Sale Price Cash Proceeds Gain on Sale Cash Cap Rate Disposition Date % Leased at closing Anchor Tenants Greentree Wawa Chesapeake, VA 5,088 $4,600 $4,400 $3,396 5.0% 1Q17 100% Wawa Oyster Point Newport News, VA 100,139 $6,500 - $3,793 16.4% (3) 3Q16 82% GSA Non-Core Retail Portfolio Various 174,758 $12,850 $12,600 ($27) 7.1% 2Q16 - 3Q16 ~85% Kroger, Family Dollar Richmond Tower Richmond, VA 206,969 $78,000 $77,000 $26,674 7.9% 1Q16 99% Williams Mullen Oceaneering Chesapeake, VA 154,000 $30,000 $10,000 $4,987 6.7% 4Q15 100% Oceaneering International Whetstone Apartments Durham, NC 203 units $35,625 $17,600 $7,210 5.7% 2Q15 26% NA Sentara Williamsburg Williamsburg, VA 49,200 $15,450 $15,200 $6,197 6.3% 1Q15 100% Sentara Virginia Natural Gas Virginia Beach, VA 31,000 $8,900 $7,400 $2,211 6.3% 4Q14 100% Virginia Natural Gas Total/Weighted Average 721,154sf/ 203 units $191,925 $144,200 $54,441 7.3%

18 Construction Business Summary $ in thousands Gross Profit Summary Q4 2016 Trailing 12 Months Revenue $50,475 $159,030 Expense (49,039) (153,375) Gross Profit $1,436 $5,655 (Unaudited) Location Total Contract Value Work in Place as of 12/31/2016 Backlog Estimated Date of Completion Highlighted Projects Four Seasons Condominium Expansion Baltimore, MD 72,385 50,146 22,239 2Q 2017 Point Street Apartments Baltimore, MD 72,100 23,392 48,708 1Q 2018 Annapolis Junction Annapolis Junction, MD 68,300 18,083 50,217 1Q 2018 Durham City Center Durham, NC 62,463 15,861 46,602 2Q 2018 27th Street Hotel Virginia Beach, VA 44,367 36,568 7,799 2Q 2017 Dinwiddie Dinwiddie, VA 24,042 1,000 23,042 2Q 2019 Sub Total $343,657 $145,050 $198,607 All Other Projects 322,623 303,512 19,111 Total $666,280 $448,562 $217,718

(1) See page 30 for Same Store vs. Non – Same Store Properties 19 Same Store NOI by Segment $ in thousands (Reconciliation to GAAP located in appendix pg. 31) Three months ended Year ended 12/31/2016 12/31/2015 $ Change % Change 12/31/2016 12/31/2015 $ Change % Change Office(1) (Unaudited) (Unaudited) Revenue $3,805 $3,896 ($91) -2.3% $15,476 $15,565 ($89) -0.6% Expenses 1,328 1,417 (89) -6.3% 5,430 5,709 (279) -4.9% Net Operating Income 2,477 2,479 (2) -0.1% 10,046 9,856 190 1.9% Retail(1) Revenue 9,380 9,348 32 0.3% 26,316 25,984 332 1.3% Expenses 2,526 2,540 (14) -0.6% 7,579 7,485 94 1.3% Net Operating Income 6,854 6,808 46 0.7% 18,737 18,499 238 1.3% Multifamily(1) Revenue 4,840 4,735 105 2.2% 12,221 12,158 63 0.5% Expenses 2,069 2,073 (4) -0.2% 5,325 5,249 76 1.4% Net Operating Income 2,771 2,662 109 4.1% 6,896 6,909 (13) -0.2% Same Store Net Operating Income (NOI) $12,102 $11,949 $153 1.3% $35,679 $35,264 $415 1.2% Net effect of straight-line rents 125 63 62 539 338 201 Amortization of lease incentives and above (below) market rents 117 118 (1) 516 514 2 Same store portfolio NOI, cash basis $12,344 $12,130 $214 1.8% $36,734 $36,116 $618 1.7% NOI, Cash Basis: Office $2,611 $2,500 $111 4.4% $10,130 $9,846 $284 2.9% Retail 6,955 6,957 (2) 0.0% 19,659 19,257 402 2.1% Multifamily 2,778 2,673 105 3.9% 6,945 7,013 (68) -1.0% $12,344 $12,130 $214 1.8% $36,734 $36,116 $618 1.7% NOI: Office $2,477 $2,479 ($2) -0.1% $10,046 $9,856 $190 1.9% Retail 6,854 6,808 46 0.7% 18,737 18,499 238 1.3% Multifamily 2,771 2,662 109 4.1% 6,896 6,909 (13) -0.2% $12,102 $11,949 $153 1.3% $35,679 $35,264 $415 1.2%

20 Top 10 Tenants - Annualized Base Rent $ in thousands As of December 31, 2016 Office Portfolio Tenant Number of Leases Lease Expiration Annualized Base Rent % of Office Portfolio Annualized Base Rent % of Total Portfolio Annualized Base Rent Clark Nexsen 1 2029 $ 2,487 12.6% 2.7% Williams Mullen 1 2018 1,524 7.7% 1.6% Hampton University 2 2024 1,023 5.2% 1.1% Commonwealth of Virginia 2 2030 891 4.5% 1.0% Kimley-Horn 1 2027 859 4.4% 0.9% Pender & Coward 1 2030 839 4.3% 0.9% Troutman Sanders 2 2025 822 4.2% 0.9% The Art Institute 3 2019 819 4.2% 0.9% City of Va Beach Development Authority 1 2024 701 3.6% 0.8% Cherry Bekaert 1 2022 698 3.5% 0.8% Top 10 Total $ 10,663 54.2% 11.6% Retail Portfolio Tenant Number of Leases Lease Expiration Annualized Base Rent % of Retail Portfolio Annualized Base Rent % of Total Portfolio Annualized Base Rent Kroger/Harris Teeter 11 2027 $ 5,923 11.5% 6.4% Home Depot 2 2019 2,190 4.3% 2.4% Bed, Bath, & Beyond 4 2022 1,669 3.3% 1.8% Regal Cinemas 2 2018 1,607 3.1% 1.7% PetSmart 5 2020 1,398 2.7% 1.5% Food Lion 3 2020 1,283 2.5% 1.4% Dick's Sporting Goods 1 2020 840 1.6% 0.9% Safeway 2 2021 821 1.6% 0.9% Weis Markets 1 2028 802 1.6% 0.9% Ross Dress for Less 2 2020 755 1.5% 0.8% Top 10 Total $ 17,288 33.7% 18.7%

21 Office Lease Summary 21 Renewal Lease Summary GAAP Cash Quarter Number of Leases Signed Net rentable SF Signed Leases Expiring Net rentable SF Expiring Contractual Rent per SF Prior Rent per SF Releasing Spread Contractual Rent per SF Prior Rent per SF Releasing Spread Weighted Average Lease Term (yrs) TI & LC TI & LC per SF Q4 2016 1 22,950 1 777 $30.66 $26.58 15.3% $28.00 $29.75 -5.9% 10.00 $569,907 $24.83 Q3 2016 - - - - - - 0.0% - - 0.0% - - - Q2 2016 1 2,318 2 3,870 33.27 26.53 25.4% 30.00 28.41 5.6% 10.00 - - Q1 2016 2 6,445 - - 21.34 19.60 8.9% 21.10 20.38 3.5% 1.65 3,773 0.59 New Lease Summary (1) Quarter Number of Leases Signed Net rentable SF Signed Cash Contractual Rent per SF Weighted Average Lease Term (yrs) TI & LC TI & LC per SF Q4 2016 - - - - - - Q3 2016 1 2,153 25.00 3.08 11,810 5.49 Q2 2016 1 1,806 25.00 5.00 63,579 35.20 Q1 2016 2 3,773 27.49 6.91 139,067 36.86 (1) Excludes new leases from properties in development

22 Office Lease Expirations 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Leased Square Feet % ABR of Office Portfolio Year of Lease Expiration Number of Leases Expiring Square Footage of Leases Expiring (1) % Portfolio Net Rentable Square Feet Annualized Base Rent % of Portfolio Annualized Base Rent Annualized Base Rent per Leased Square Foot Available - 116,693 13.8% -$ -$ -$ 2017 8 14,159 1.7% 437,004 2.2% 30.86 2018 16 137,023 16.2% 3,920,009 19.9% 28.61 2019 14 90,120 10.6% 2,259,108 11.5% 25.07 2020 3 17,840 2.1% 524,457 2.7% 29.40 2021 6 44,933 5.3% 1,186,952 6.0% 26.42 2022 3 48,117 5.7% 1,347,805 6.8% 28.01 2023 4 43,078 5.1% 1,087,325 5.5% 25.24 2024 3 60,751 7.2% 1,706,129 8.7% 28.08 2025 4 43,292 5.1% 1,218,282 6.2% 28.14 2026 3 15,168 1.8% 328,333 1.7% 21.65 2027 3 49,072 5.8% 1,395,219 7.1% 28.43 Thereafter 8 166,994 19.6% 4,283,165 21.7% 25.65 Total / Weighted Average 75 847,240 100.0% 19,693,788$ 100.0% $26.96 (1) Includes new leases from properties in development

23 Retail Lease Summary (1) Excludes new leases from properties in development Renewal Lease Summary GAAP Cash Quarter Number of Leases Signed Net rentable SF Signed Leases Expiring Net rentable SF Expiring Contractual Rent per SF Prior Rent per SF Releasing Spread Contractual Rent per SF Prior Rent per SF Releasing Spread Weighted Average Lease Term (yrs) TI & LC TI & LC per SF Q4 2016 8 57,227 8 23,035 $16.81 $17.07 -1.5% $16.25 $17.13 -5.1% 6.50 $443,344 7.75$ Q3 2016 14 80,526 10 22,340 16.84 15.69 7.3% 16.36 15.80 3.5% 7.00 503,893 6.26 Q2 2016 25 98,300 14 33,111 18.28 17.32 5.5% 17.99 17.55 2.5% 6.36 234,929 2.39 Q1 2016 10 26,870 1 1,800 22.70 21.29 6.6% 22.21 21.78 1.9% 3.37 61,290 2.28 New Lease Summary(1) Quarter Number of Leases Signed Net rentable SF Signed Cash Contractual Rent per SF Weighted Average Lease Term (yrs) TI & LC TI & LC per SF Q4 2016 6 21,078 $13.25 8.39 $365,657 $17.35 Q3 2016 3 14,341 14.03 6.52 262,134 18.28 Q2 2016 4 5,560 21.24 7.31 162,432 29.21 Q1 2016 4 11,913 19.68 5.10 431,103 36.19

24 Retail Lease Expirations 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% - 100,000 200,000 300,000 400,000 500,000 600,000 Leased Square Feet % ABR of Retail Portfolio Year of Lease Expiration Number of Leases Expiring Square Footage of Leases Expiring (1) % Portfolio Net Rentable Square Feet Annualized Base Rent % of Portfolio Annualized Base Rent Annualized Base Rent per Leased Square Foot Available - 156,929 4.4% -$ -$ -$ M-T-M 5 7,342 0.2% 118,656 0.2% 16.16 2017 45 224,974 6.3% 3,645,108 7.1% 16.20 2018 73 331,094 9.2% 5,371,571 10.5% 16.22 2019 80 559,851 15.6% 8,515,948 16.6% 15.21 2020 60 507,658 14.1% 7,073,303 13.8% 13.93 2021 52 268,455 7.5% 4,965,436 9.7% 18.50 2022 27 262,149 7.3% 3,798,078 7.4% 14.49 2023 14 246,153 6.9% 3,077,764 6.0% 12.50 2024 16 165,318 4.6% 2,596,382 5.1% 15.71 2025 15 223,613 6.2% 2,259,666 4.4% 10.11 2026 19 154,386 4.3% 2,649,185 5.2% 17.16 2027 9 75,346 2.1% 1,732,069 3.4% 22.99 Thereafter 16 409,290 11.3% 5,484,599 10.6% 13.40 Total / Weighted Average 431 3,592,558 100.0% 51,287,765$ 100.0% $14.93 (1) Includes new leases from properties in development

25 Net Asset Value Component Data In thousands (1) Includes leases for space occupied by Armada Hoffler which are eliminated for GAAP purposes Stabilized Portfolio NOI (Cash) Taxable REIT Subsidiary (TRS) Three months ended Annualized Trailing 12 Months 12/31/2016 12/31/2016 12/31/2016 Diversified Portfolio General contracting and real estate services $5,655 Office $232 $928 Retail 8,963 35,852 Other Assets Multifamily 993 3,972 Other Assets As of 12/31/2016 Total Diversified Portfolio NOI $10,188 $40,752 Cash and Cash Equivalents $21,942 Restricted Cash 3,251 Virginia Beach Town Center Accounts Receivable 15,052 Office(1) $2,566 $10,264 Notes Receivable 59,546 Retail (1) 2,026 8,104 Construction receivables, including retentions 39,433 Multifamily 1,786 7,144 Equity method investments (Durham City Center JV) 10,235 Total Virginia Beach Town Center NOI $6,378 $25,512 Other Assets 64,275 Total Other Assets $213,734 Timing of mid-quarter transaction Acquisition $208 $832 Liabilities & Share Count Disposition - - As of 12/31/2016 Total timing Mid-Quarter transaction $208 $832 Liabilities Mortgages and notes payable $522,180 Stabilized Portfolio NOI - Cash Basis $16,774 $66,264 Accounts payable and accrued liabilities 10,804 Construction payables, including retentions 51,130 Development Pipeline Other Liabilities 49,376 12/31/2016 Total Liabilities $633,490 Income producing property $132,000 Construction in progress 12,000 Three months ended Other assets 6,000 Share Count 12/31/2016 Total cost to date (p. 16) $150,000 Weighted average common shares outstanding 36,465 Weighted average operating partnership ("OP") Units Outstanding 17,793 Land held for development 680 Total weighted average common shares and OP units outstanding 54,258

Appendix – Definitions & Reconciliations

27 Definitions Net Operating Income: We calculate Net Operating Income (“NOI”) as property revenues (base rent, expense reimbursements and other revenue) less property expenses (rental expenses and real estate taxes). Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to such other REITs’ NOI. NOI is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, NOI should not be considered an alternative to cash flows as a measure of liquidity. We consider NOI to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of our real estate business. To calculate NOI on a cash basis, we adjust NOI to exclude the net effects of straight-line rent and the amortization of lease incentives and above/below market rents. Funds From Operations: We calculate Funds From Operations (“FFO”) in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as net income (loss) (calculated in accordance with accounting principles generally accepted in the United States (“GAAP”)), excluding gains (or losses) from sales of depreciable operating property, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures. FFO is a supplemental non-GAAP financial measure. Management uses FFO as a supplemental performance measure because it believes that FFO is beneficial to investors as a starting point in measuring our operational performance. Specifically, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, which do not relate to or are not indicative of operating performance, FFO provides a performance measure that, when compared period-over-period, captures trends in occupancy rates, rental rates and operating costs. Other equity REITs may not calculate FFO in accordance with the NAREIT definition as we do, and, accordingly, our FFO may not be comparable to such other REITs’ FFO.

28 Definitions Normalized Funds From Operations: We calculate Normalized Funds From Operations (“Normalized FFO") as FFO calculated in accordance with the standards established by NAREIT, adjusted for acquisition, development and other pursuit costs, gains or losses from the early extinguishment of debt, impairment charges, mark-to-market adjustments on interest rate derivatives and other non- comparable items. Management believes that the computation of FFO in accordance to NAREIT’s definition includes certain items that are not indicative of the results provided by the Company’s operating portfolio and affect the comparability of the Company’s period-over-period performance. Our calculation of Normalized FFO differs from NAREIT's definition of FFO. Other equity REITs may not calculate Normalized FFO in the same manner as us, and, accordingly, our Normalized FFO may not be comparable to other REITs' Normalized FFO. Adjusted Funds From Operations: We calculate Adjusted Funds From Operations (“AFFO”) as Normalized FFO adjusted for the impact of non-cash stock compensation, tenant improvement, leasing commission and leasing incentive costs associated with second generation rental space, capital expenditures, non-cash interest expense, straight-line rents, the amortization of leasing incentives and above (below) market rents and proceeds from government development grants. Management believes that AFFO provides useful supplemental information to investors regarding our operating performance as it provides a consistent comparison of our operating performance across time periods and allows investors to more easily compare our operating results with other REITs. However, other REITs may use different methodologies for calculating AFFO or similarly entitled FFO measures and, accordingly, our AFFO may not always be comparable to AFFO or other similarly entitled FFO measures of other REITs.

Definitions Adjusted EBITDA: We calculate Adjusted EBITDA as net income (loss) (calculated in accordance with GAAP), excluding interest expense, income taxes, depreciation and amortization, gains (or losses) from sales of depreciable operating property and mark-to- market adjustments on interest rate derivates. Management believes Adjusted EBITDA is useful to investors in evaluating and facilitating comparisons of our operating performance between periods and between REITs by removing the impact of our capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from our operating results along with other non-comparable items. Core EBITDA: We calculate Core EBITDA as EBITDA, excluding certain items, including, but not limited to, debt extinguishment losses, mark-to-market adjustments on interest rate derivatives, non-cash stock compensation and the impact of development pipeline projects that are still in lease-up. We generally consider a property to be in lease-up until the earlier of (i) the quarter after which the property reaches 80% occupancy or (ii) the thirteenth quarter after the property receives its certificate of occupancy. Management believes that Core EBITDA provides useful supplemental information to investors regarding our ongoing operating performance as it provides a consistent comparison of our operating performance across time periods and allows investors to more easily compare our operating results with other REITs. However, other REITs may use different methodologies for calculating Core EBITDA or similarly entitled measures and, accordingly, our Core EBITDA may not always be comparable to Core EBITDA or other similarly entitled measures of other REITs. Core Debt: We calculate Core Debt as our total debt, excluding loans associated with our development pipeline, cash & cash equivalents, and restricted cash. Same Store Portfolio: We define same store properties as those that we owned and operated for the entirety of the comparative periods presented. We generally consider a property to be in lease-up until the earlier of (i) the quarter after which the property reaches 80% occupancy or (ii) the thirteenth quarter after the property receives its certificate of occupancy. The following table shows the properties included in the same store and non-same store portfolio for the comparative periods presented. 29

30 Same Store vs. Non-Same Store Same Store Non-Same Store Same Store Non-Same Store Same Store Non-Same Store Same Store Non-Same Store Retail Properties Retail Properties (Continued) 249 Central Park Retail X X Socastee Commons X X Alexander Pointe X X South Retail X X Bermuda Crossroads X X South Square X X Broad Creek Shopping Center X X Southgate Square X X Brooks Crossing (Retail) X X Southshore Shops X X Broadmoor Plaza X X Stone House Square X X Columbus Village X X Studio 56 Retail X X Columbus Village II X X Tyre Neck Harris Teeter X X Commerce Street Retail X X Waynesboro Commons X X Courthouse 7-Eleven X X Wendover Village X X Dick’s at Town Center X X Willowbrook Commons X X Dimmock Square X X Office Properties Greentree Shopping Center X X 4525 Main Street X X Fountain Plaza Retail X X Armada Hoffler Tower X X Gainsborough Square X X Commonwealth of VA - Chesapeake X X Hanbury Village X X Commonwealth of VA - Virginia Beach X X Harper Hill Commons X X Oceaneering X X Harrisonburg Regal X X One Columbus X X Kroger Junction X X Oyster Point X X North Hampton Market X X Richmond Tower X X North Point Center X X Sentara Williamsburg X X Oakland Marketplace X X Two Columbus X X Parkway Marketplace X X Multifamily Properties Patterson Place X X Encore Apartments X X Perry Hall Marketplace X X Liberty Apartments X X Providence Plaza X X Smith’s Landing X X Renaissance Square X X The Cosmopolitan X X Sandbridge Commons X X Johns Hopkins Village X X Year Ended 12/31/2016 to 2015 Three Months Ended 12/31/2016 to 2015 Three Months Ended 12/31/2016 to 2015 Year Ended 12/31/2016 to 2015

31 Reconciliation to Property Portfolio NOI $ in thousands Three months ended 12/31 Year ended 12/31 2016 2015 2016 2015 Office Same Store(1) Rental revenues $3,805 $3,896 $15,476 $15,565 Property expenses 1,328 1,417 $5,430 5,709 NOI 2,477 2,479 $10,046 9,856 Non-Same Store NOI 652 2,764 $3,323 11,790 Segment NOI 3,129 $5,243 $13,369 $21,646 Retail Same Store(1) Rental revenues $9,380 $9,348 $26,316 $25,984 Property expenses 2,526 2,540 $7,579 7,485 NOI 6,854 6,808 $18,737 18,499 Non-Same Store NOI 4,434 - $23,263 4,722 Segment NOI $11,288 $6,808 $42,000 $23,221 Multifamily Same Store(1) Rental revenues $4,840 $4,735 $12,221 $12,158 Property expenses 2,069 2,073 $5,325 5,249 NOI 2,771 2,662 $6,896 6,909 Non-Same Store NOI 1,116 - $5,557 2,410 Segment NOI 3,887 2,662 $12,453 $9,319 Total Property Portfolio NOI $18,304 $14,713 $67,822 $54,186 (1) See page 30 for the Same Store vs. Non-Same Store properties

32 Reconciliation to Property NOI $ in thousands Three months ended 12/31/2016 Diversified Portfolio Office Retail Multifamily Total NOI - Cash Basis $232 $8,963 $993 $10,188 Net effect of straight-line rents 21 102 2 125 Amortization of lease incentives and (above) below market rents - 195 (13) 182 NOI $253 $9,260 $982 $10,495 Town Center of Virginia Beach Office Retail Multifamily Total NOI - Cash Basis $2,566 $2,026 $1,786 $6,378 Net effect of straight-line rents (128) (4) 4 (128) Amortization of lease incentives and (above) below market rents (26) (51) - (77) Elimination of AHH rent (187) (81) - (268) NOI $2,225 $1,890 $1,790 $5,905 NOI Office Retail Multifamily Total Diversified Portfolio $253 $9,260 $982 $10,495 Town Center of Virginia Beach 2,225 1,890 1,790 5,905 Unstabilized Properties 651 138 1,115 1,904 Total Property Portfolio NOI $3,129 $11,288 $3,887 $18,304

33 Reconciliation to GAAP Net Income $ in thousands Office Retail Multifamily Total Property Portfolio General Contracting & Real Estate Services Total Segment revenues 4,832$ 15,026$ 6,658$ 26,516$ 50,475$ 76,991$ Segment expenses 1,703 3,738 2,771 8,212 49,039 57,251 Net operating income 3,129$ 11,288$ 3,887$ 18,304$ 1,436$ 19,740$ Depreciation and amortization (9,692) General and administrative expenses (2,688) Acquisition, development and other pursuit costs (77) Impairment charges (171) Interest income 1,300 Interest expense (4,573) Loss on extinguishment of debt - Gain on real estate dispositions 93 Change in fair value of interest rate derivatives 1,323 Other income (7) Income tax provision (103) Net income 5,145$ Office Retail Multifamily Total Rental Properties General Contracting & Real Estate Services Total Segment revenues 20,929$ 56,511$ 21,915$ 99,355$ 159,030$ 258,385$ Segment expenses 7,560 14,511 9,462 31,533 153,375 184,908 Net operating income 13,369$ 42,000$ 12,453$ 67,822$ 5,655$ 73,477$ Depreciation and amortization (35,328) General and administrative expenses (9,552) Acquisition, development and other pursuit costs (1,563) Impairment charges (355) Interest income 3,228 Interest expense (16,466) Loss on extinguishment of debt (82) Gain on real estate dispositions 30,533 Change in fair value of interest rate derivatives (941) Other income 147 Income tax provision (343) Net income 42,755$ Three months ended 12/31/2016 Year ended 12/31/2016

EX-99.3

{ }2017GUIDANCE JOHNS HOPKINS VILLAGE • NINE EAST 33RD • BALTIMORE, MD

PAGE 2 NYSE : AHH FORWARD LOOKING STATEMENTS This Supplemental Information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2016, and the unaudited condensed consolidated financial statements appearing in our press release dated February 9, 2017, which has been furnished as Exhibit 99.1 to our Form 8-K filed on February 9, 2017. The Company makes statements in this Supplemental Information that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). In particular, statements pertaining to our capital resources, portfolio performance and results of operations contain forward-looking statements. Likewise, all of our statements regarding anticipated growth in our funds from operations, normalized funds from operations, adjusted funds from operations, funds available for distribution and net operating income are forward-looking statements. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “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, estimates, data or methods, which may be incorrect or imprecise, and actual results may vary materially from those anticipated, estimated or projected. The Company does not guarantee that the transactions and events described will happen as described (or that they will happen at all). For further discussion of risk factors and other events that could impact our future results, please refer to the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), and the documents subsequently filed by us from time to time with the SEC. The Company does not provide a reconciliation for its guidance range of Normalized FFO per diluted share to net income per diluted share, the most directly comparable forward-looking GAAP financial measure, because it is unable to provide a meaningful or accurate estimate of reconciling items and the information is not available without unreasonable effort as a result of the inherent difficulty of forecasting the timing and/or amounts of various items that would impact net income per diluted share. For the same reasons, the Company is unable to address the probable significance of the unavailable information and believes that providing a reconciliation for its guidance range of Normalized FFO per diluted share would imply a degree of precision for its forward-looking net income per diluted share that could be misleading to investors.

PROJECTS DELIVERED SINCE IPO PAGE 3 NYSE : AHH TOTAL INVESTMENT $261M TOTAL ESTIMATED VALUE ~ $313M IPO-2016 DELIVERED PROJECT NAME 4525 MAIN STREET VIRGINIA BEACH, VA ENCORE APARTMENTS VIRGINIA BEACH, VA WHETSTONE APARTMENTS (1) DURHAM, NC GREENTREE CHESAPEAKE, VA OCEANEERING (1) CHESAPEAKE, VA COMMONWEALTH OF VIRGINIA CHESAPEAKE, VA COMMONWEALTH OF VIRGINIA VIRGINIA BEACH, VA SANDBRIDGE COMMONS VIRGINIA BEACH, VA LIGHTFOOT MARKETPLACE WILLIAMSBURG, VA BROOKS CROSSING NEWPORT NEWS, VA JOHNS HOPKINS VILLAGE BALTIMORE, MD TOTAL INVESTMENT TOTAL ESTIMATED VALUE PRODUCT TYPE OFFICE MULTIFAMILY MULTIFAMILY RETAIL OFFICE OFFICE OFFICE RETAIL RETAIL RETAIL MULTIFAMILY SF OR UNITS 239,000 SF 286 UNITS 203 UNITS 18,000 SF 155,000 SF 36,000 SF 11,000 SF 70,000 SF 109,000 SF 18,000 SF 157 UNITS 656,000 SF/ 646 UNITS DELIVERY 3Q14 3Q14 3Q14 4Q14 1Q15 1Q15 1Q15 1Q15 3Q16 3Q16 3Q16 INVESTMENT $51M $32M $29M $6M $25M $7M $3M $13M $24M $3M $68M $261M ~ $52M ~ $313M MANAGEMENT ESTIMATED VALUE CREATION AT 20% (1) Realized value of disposed properties created from the wholesale to retail spread. ESTIMATED VALUE CREATION OF ~ $52M

PROJECTS UNDER DEVELOPMENT PAGE 4 NYSE : AHH TOTAL ESTIMATED INVESTMENT ~ $435M TOTAL ESTIMATED VALUE ~ $522M 2017-2019 PIPELINE ESTIMATED VALUE CREATION OF ~ $87M MANAGEMENT ESTIMATED VALUE CREATION AT 20% PRODUCT TYPE MULTIFAMILY MULTIFAMILY MIXED-USE MIXED-USE MULTIFAMILY OFFICE DELIVERY(1) 3Q17 4Q17 2Q18 3Q18 3Q18 4Q18 ESTIMATED INVESTMENT(1) $102M $92M $36M $42M $45M $20M $98M ~ $435M ~ $87M ~ $522M (1) Timing and investment amounts are estimates and are subject to change as the development process demands. PROJECT NAME ANNAPOLIS JUNCTION ANNAPOLIS JUNCTION, MD POINT STREET APARTMENTS BALTIMORE, MD ONE CITY CENTER DURHAM, NC TOWN CENTER PHASE VI VIRGINIA BEACH, VA HARDING PLACE CHARLOTTE, NC BROOKS CROSSING NEWPORT NEWS, VA PRE-DEVELOPMENT PROJECTS TOTAL ESTIMATED INVESTMENT TOTAL ESTIMATED VALUE

TOTAL ESTIMATED VALUE CREATION PAGE 5 NYSE : AHH 2014 2015 2016 2018-2019(1) TOTAL INVESTMENT MANAGEMENT ESTIMATED VALUE CREATION AT 20% TOTAL ESTIMATED VALUE $118M $48M $95M $435M(1) $696M YEAR DELIVERED INVESTMENT ~ $139M ~ $835M (1) Timing and investment amounts are estimates and are subject to change as the development process demands. TOTAL INVESTMENT $696M ESTIMATED VALUE CREATION ~ $139M TOTAL ESTIMATED VALUE ~ $835M

PORTFOLIO GROWTH SINCE IPO PAGE 6 NYSE : AHH $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 IPO 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 Re nt a l P ro p e rt y N O I ( A nn ua liz e d ) Re a l E st a te In v e st m e nt a t C o st Real Estate Investment Delivered Development Rental Property NOI (Annualized) Following IPO no development projects were delivered until 3Q14 Projected NOI increase partially corresponds to the delivery of development properties NOI projected to increase as the development projects are delivered between 2017 - 2019 $ in thousands

2017 OUTLOOK & ASSUMPTIONS PAGE 7 NYSE : AHH 2017 OUTLOOK TOTAL NOI CONSTRUCTION SEGMENT GROSS PROFIT G&A EXPENSES INTEREST INCOME INTEREST EXPENSE NORMALIZED FFO PER DILUTED SHARE LOW $73.8 M $5.0 M $10.2 M $5.7 M $17.9 M $0.99 GUIDANCE ASSUMPTIONS HIGH $74.5 M $5.5 M $10.5 M $5.9 M $18.5 M $1.03 Disposition of a single tenant asset during the first quarter with the proceeds being used for balance sheet purposes. • Raising 40 million dollars through the ATM program, or 10 million dollars per quarter, for a full year weighted average share count of 56.8 million. • Interest expense is calculated based on the Forward LIBOR Curve, which forecasts rates rising to 1.25% by year end. • Maintaining core debt to core EBITDA in the mid 6x range. • No acquisitions in 2017.

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