0001569187-20-000051.txt : 20200807 0001569187-20-000051.hdr.sgml : 20200807 20200806185137 ACCESSION NUMBER: 0001569187-20-000051 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 80 CONFORMED PERIOD OF REPORT: 20200630 FILED AS OF DATE: 20200807 DATE AS OF CHANGE: 20200806 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Armada Hoffler Properties, Inc. CENTRAL INDEX KEY: 0001569187 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 461214914 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-35908 FILM NUMBER: 201083295 BUSINESS ADDRESS: STREET 1: 222 CENTRAL PARK AVENUE STREET 2: SUITE 2100 CITY: VIRGINIA BEACH STATE: VA ZIP: 23462 BUSINESS PHONE: 757-366-4000 MAIL ADDRESS: STREET 1: 222 CENTRAL PARK AVENUE STREET 2: SUITE 2100 CITY: VIRGINIA BEACH STATE: VA ZIP: 23462 10-Q 1 ahhq2202010-q.htm 10-Q Document
P7YP10Y00P6Mfalse--12-31Q220200001569187us-gaap:AccountingStandardsUpdate201602Memberus-gaap:AccountingStandardsUpdate201613Member0.210.210.220.010.0150000000050000000056277971570102595627797157010259P1Y2050000000.00250.00150.06750.06750.010.0110000000029300001000000002930000253000025338302530000253383000P2Y0.33330.33330.3333500000 0001569187 2020-01-01 2020-06-30 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember 2020-01-01 2020-06-30 0001569187 us-gaap:CommonStockMember 2020-01-01 2020-06-30 0001569187 2020-08-05 0001569187 2019-12-31 0001569187 2020-06-30 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember 2020-06-30 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember 2019-12-31 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember 2019-01-01 2019-12-31 0001569187 2019-04-01 2019-06-30 0001569187 2020-04-01 2020-06-30 0001569187 2019-01-01 2019-06-30 0001569187 ahh:NoncontrollingInterestsInInvestmentEntitiesMember 2020-04-01 2020-06-30 0001569187 ahh:NoncontrollingInterestsInInvestmentEntitiesMember 2019-01-01 2019-06-30 0001569187 ahh:NoncontrollingInterestsInOperatingPartnershipMember 2019-04-01 2019-06-30 0001569187 ahh:NoncontrollingInterestsInOperatingPartnershipMember 2019-01-01 2019-06-30 0001569187 ahh:NoncontrollingInterestsInOperatingPartnershipMember 2020-01-01 2020-06-30 0001569187 ahh:NoncontrollingInterestsInInvestmentEntitiesMember 2020-01-01 2020-06-30 0001569187 ahh:NoncontrollingInterestsInOperatingPartnershipMember 2020-04-01 2020-06-30 0001569187 ahh:NoncontrollingInterestsInInvestmentEntitiesMember 2019-04-01 2019-06-30 0001569187 us-gaap:ParentMember 2019-01-01 2019-03-31 0001569187 2019-01-01 2019-03-31 0001569187 ahh:NoncontrollingInterestsInInvestmentEntitiesMember 2019-03-31 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember us-gaap:ParentMember 2019-04-01 2019-06-30 0001569187 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-01-01 2019-03-31 0001569187 us-gaap:ParentMember 2019-04-01 2019-06-30 0001569187 ahh:NoncontrollingInterestsInOperatingPartnershipMember 2019-06-30 0001569187 2018-12-31 0001569187 ahh:NoncontrollingInterestsInInvestmentEntitiesMember 2019-01-01 2019-03-31 0001569187 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember ahh:NoncontrollingInterestsInOperatingPartnershipMember 2018-12-31 0001569187 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001569187 us-gaap:PreferredStockMember 2018-12-31 0001569187 us-gaap:ParentMember 2019-06-30 0001569187 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001569187 us-gaap:ParentMember 2018-12-31 0001569187 ahh:NoncontrollingInterestsInOperatingPartnershipMember 2019-01-01 2019-03-31 0001569187 2019-06-30 0001569187 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-12-31 0001569187 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-04-01 2019-06-30 0001569187 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-12-31 0001569187 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001569187 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember us-gaap:PreferredStockMember 2019-04-01 2019-06-30 0001569187 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001569187 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001569187 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001569187 ahh:NoncontrollingInterestsInInvestmentEntitiesMember 2018-12-31 0001569187 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001569187 ahh:NoncontrollingInterestsInOperatingPartnershipMember 2018-12-31 0001569187 ahh:NoncontrollingInterestsInOperatingPartnershipMember 2019-03-31 0001569187 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001569187 us-gaap:CommonStockMember 2019-06-30 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001569187 us-gaap:PreferredStockMember 2019-03-31 0001569187 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-03-31 0001569187 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2018-12-31 0001569187 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001569187 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember us-gaap:ParentMember 2018-12-31 0001569187 us-gaap:ParentMember 2019-03-31 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember 2019-04-01 2019-06-30 0001569187 us-gaap:CommonStockMember 2019-03-31 0001569187 us-gaap:CommonStockMember 2018-12-31 0001569187 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001569187 2019-03-31 0001569187 ahh:OperatingPartnershipMember us-gaap:ParentMember 2019-04-01 2019-06-30 0001569187 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-06-30 0001569187 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001569187 us-gaap:PreferredStockMember 2019-06-30 0001569187 ahh:NoncontrollingInterestsInInvestmentEntitiesMember 2019-06-30 0001569187 ahh:OperatingPartnershipMember us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001569187 us-gaap:ParentMember 2020-01-01 2020-03-31 0001569187 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001569187 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember 2020-04-01 2020-06-30 0001569187 2020-01-01 2020-03-31 0001569187 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001569187 us-gaap:ParentMember 2019-12-31 0001569187 us-gaap:PreferredStockMember 2020-03-31 0001569187 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0001569187 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2019-12-31 0001569187 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2020-01-01 2020-03-31 0001569187 ahh:NoncontrollingInterestsInOperatingPartnershipMember 2020-01-01 2020-03-31 0001569187 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0001569187 us-gaap:CommonStockMember 2020-03-31 0001569187 us-gaap:CommonStockMember 2020-06-30 0001569187 us-gaap:ParentMember 2020-04-01 2020-06-30 0001569187 ahh:NoncontrollingInterestsInInvestmentEntitiesMember 2020-06-30 0001569187 ahh:NoncontrollingInterestsInInvestmentEntitiesMember 2020-03-31 0001569187 us-gaap:ParentMember 2020-03-31 0001569187 ahh:NoncontrollingInterestsInOperatingPartnershipMember 2020-06-30 0001569187 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember ahh:NoncontrollingInterestsInOperatingPartnershipMember 2019-12-31 0001569187 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001569187 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0001569187 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2020-06-30 0001569187 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember us-gaap:ParentMember 2020-04-01 2020-06-30 0001569187 us-gaap:CommonStockMember 2019-12-31 0001569187 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-12-31 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001569187 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001569187 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2020-04-01 2020-06-30 0001569187 us-gaap:PreferredStockMember 2019-12-31 0001569187 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember us-gaap:ParentMember 2019-12-31 0001569187 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001569187 2020-03-31 0001569187 ahh:NoncontrollingInterestsInInvestmentEntitiesMember 2020-01-01 2020-03-31 0001569187 ahh:NoncontrollingInterestsInInvestmentEntitiesMember 2019-12-31 0001569187 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-12-31 0001569187 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001569187 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2020-03-31 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember us-gaap:PreferredStockMember 2020-04-01 2020-06-30 0001569187 ahh:NoncontrollingInterestsInOperatingPartnershipMember 2020-03-31 0001569187 ahh:NoncontrollingInterestsInOperatingPartnershipMember 2019-12-31 0001569187 us-gaap:PreferredStockMember 2020-06-30 0001569187 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001569187 us-gaap:ParentMember 2020-06-30 0001569187 2019-01-01 2019-12-31 0001569187 2018-01-01 2018-12-31 0001569187 ahh:AnnapolisJunctionApartmentsOwnerLLCMember ahh:TheResidencesAtAnnapolisJunctionMember 2020-06-30 0001569187 ahh:OperatingPropertyMember 2020-06-30 0001569187 us-gaap:GeneralPartnerMember 2020-06-30 0001569187 ahh:DevelopmentPropertyMember 2020-06-30 0001569187 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember ahh:AccountingStandardUpdate201613Member ahh:ConstructionReceivablesMember us-gaap:RetainedEarningsMember 2019-12-31 0001569187 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember ahh:AccountingStandardUpdate201613Member us-gaap:RetainedEarningsMember 2019-12-31 0001569187 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember ahh:AccountingStandardUpdate201613Member ahh:MezzanineLoanMember us-gaap:RetainedEarningsMember 2019-12-31 0001569187 us-gaap:IntersegmentEliminationMember ahh:GeneralContractingAndRealEstateServicesMember ahh:GeneralContractingAndRealEstateServicesSegmentMember 2020-01-01 2020-06-30 0001569187 us-gaap:IntersegmentEliminationMember ahh:GeneralContractingAndRealEstateServicesMember ahh:GeneralContractingAndRealEstateServicesSegmentMember 2019-01-01 2019-06-30 0001569187 us-gaap:IntersegmentEliminationMember ahh:GeneralContractingAndRealEstateServicesMember ahh:GeneralContractingAndRealEstateServicesSegmentMember 2020-04-01 2020-06-30 0001569187 us-gaap:IntersegmentEliminationMember ahh:GeneralContractingAndRealEstateServicesMember ahh:GeneralContractingAndRealEstateServicesSegmentMember 2019-04-01 2019-06-30 0001569187 us-gaap:OperatingSegmentsMember ahh:GeneralContractingAndRealEstateServicesMember ahh:GeneralContractingAndRealEstateServicesSegmentMember 2020-01-01 2020-06-30 0001569187 us-gaap:OperatingSegmentsMember ahh:OfficeRealEstateSegmentMember 2019-04-01 2019-06-30 0001569187 us-gaap:OperatingSegmentsMember 2020-01-01 2020-06-30 0001569187 us-gaap:OperatingSegmentsMember ahh:GeneralContractingAndRealEstateServicesMember ahh:GeneralContractingAndRealEstateServicesSegmentMember 2019-01-01 2019-06-30 0001569187 us-gaap:OperatingSegmentsMember ahh:RetailRealEstateSegmentMember 2020-01-01 2020-06-30 0001569187 us-gaap:OperatingSegmentsMember 2020-04-01 2020-06-30 0001569187 us-gaap:OperatingSegmentsMember ahh:OfficeRealEstateSegmentMember 2019-01-01 2019-06-30 0001569187 us-gaap:OperatingSegmentsMember 2019-01-01 2019-06-30 0001569187 us-gaap:OperatingSegmentsMember srt:MultifamilyMember 2020-04-01 2020-06-30 0001569187 us-gaap:OperatingSegmentsMember ahh:OfficeRealEstateSegmentMember 2020-04-01 2020-06-30 0001569187 us-gaap:OperatingSegmentsMember ahh:OfficeRealEstateSegmentMember 2020-01-01 2020-06-30 0001569187 us-gaap:OperatingSegmentsMember srt:MultifamilyMember 2019-04-01 2019-06-30 0001569187 us-gaap:OperatingSegmentsMember ahh:RetailRealEstateSegmentMember 2019-01-01 2019-06-30 0001569187 us-gaap:OperatingSegmentsMember ahh:GeneralContractingAndRealEstateServicesMember ahh:GeneralContractingAndRealEstateServicesSegmentMember 2019-04-01 2019-06-30 0001569187 us-gaap:OperatingSegmentsMember 2019-04-01 2019-06-30 0001569187 us-gaap:OperatingSegmentsMember srt:MultifamilyMember 2020-01-01 2020-06-30 0001569187 us-gaap:OperatingSegmentsMember srt:MultifamilyMember 2019-01-01 2019-06-30 0001569187 us-gaap:OperatingSegmentsMember ahh:GeneralContractingAndRealEstateServicesMember ahh:GeneralContractingAndRealEstateServicesSegmentMember 2020-04-01 2020-06-30 0001569187 us-gaap:OperatingSegmentsMember ahh:RetailRealEstateSegmentMember 2019-04-01 2019-06-30 0001569187 us-gaap:OperatingSegmentsMember ahh:RetailRealEstateSegmentMember 2020-04-01 2020-06-30 0001569187 us-gaap:MaterialReconcilingItemsMember 2019-01-01 2019-06-30 0001569187 us-gaap:MaterialReconcilingItemsMember 2020-01-01 2020-06-30 0001569187 us-gaap:MaterialReconcilingItemsMember 2020-04-01 2020-06-30 0001569187 us-gaap:MaterialReconcilingItemsMember 2019-04-01 2019-06-30 0001569187 srt:MaximumMember 2020-06-30 0001569187 srt:MinimumMember 2020-06-30 0001569187 us-gaap:DisposalGroupHeldForSaleOrDisposedOfBySaleNotDiscontinuedOperationsMember 2020-05-29 0001569187 ahh:ChronicleHoldingsLLCMember ahh:BelmontNorthCarolinaMember 2020-03-20 2020-03-20 0001569187 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember ahh:TryonPartnersLLCMember 2020-01-10 2020-01-10 0001569187 us-gaap:DisposalGroupHeldForSaleOrDisposedOfBySaleNotDiscontinuedOperationsMember 2020-05-29 2020-05-29 0001569187 ahh:OperatingPartnershipMember us-gaap:RevolvingCreditFacilityMember ahh:NewCreditFacilityMember 2020-05-29 0001569187 ahh:OperatingPartnershipMember us-gaap:RevolvingCreditFacilityMember ahh:NewCreditFacilityMember 2020-05-29 2020-05-29 0001569187 ahh:PointStreetApartmentsBaltimoreMarylandMember 2020-06-30 0001569187 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember ahh:BelmontNorthCarolinaMember ahh:ChronicleHoldingsLLCMember 2019-09-12 2019-09-12 0001569187 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember ahh:BelmontNorthCarolinaMember ahh:ChronicleHoldingsLLCMember 2020-03-20 2020-03-20 0001569187 ahh:TryonPartnersLLCMember 2020-01-10 2020-01-10 0001569187 ahh:InterlockCommercialMember ahh:MezzanineLoanMember 2020-05-31 0001569187 ahh:DelrayPlazaMember ahh:MezzanineLoanMember 2020-03-03 0001569187 ahh:DelrayPlazaMember ahh:MezzanineLoanMember 2020-06-30 0001569187 ahh:TheResidencesAtAnnapolisJunctionMember ahh:MezzanineLoanMember 2020-06-30 0001569187 ahh:MezzanineLoanMember 2020-06-30 0001569187 ahh:InterlockCommercialMember ahh:MezzanineLoanMember 2020-06-30 0001569187 ahh:InterlockResidentialMember ahh:MezzanineLoanMember 2020-06-30 0001569187 ahh:NextonSquareMember ahh:MezzanineLoanMember 2020-06-30 0001569187 ahh:NextonSquareMember ahh:MezzanineLoanMember 2019-12-31 0001569187 ahh:OtherNotesReceivableMember 2020-06-30 0001569187 ahh:DelrayPlazaMember ahh:MezzanineLoanMember 2019-12-31 0001569187 ahh:MezzanineLoanMember 2019-12-31 0001569187 ahh:InterlockResidentialMember ahh:MezzanineLoanMember 2019-12-31 0001569187 ahh:TheResidencesAtAnnapolisJunctionMember ahh:MezzanineLoanMember 2019-12-31 0001569187 ahh:InterlockCommercialMember ahh:MezzanineLoanMember 2019-12-31 0001569187 ahh:OtherNotesReceivableMember 2019-12-31 0001569187 ahh:MezzanineLoanMember 2020-04-01 2020-06-30 0001569187 ahh:OtherNotesReceivableMember 2019-04-01 2019-06-30 0001569187 ahh:DelrayPlazaMember ahh:MezzanineLoanMember 2019-04-01 2019-06-30 0001569187 ahh:PointStreetApartmentsBaltimoreMarylandMember ahh:MezzanineLoanMember 2019-04-01 2019-06-30 0001569187 ahh:InterlockResidentialMember ahh:MezzanineLoanMember 2020-04-01 2020-06-30 0001569187 ahh:OtherNotesReceivableMember 2019-01-01 2019-06-30 0001569187 ahh:PointStreetApartmentsBaltimoreMarylandMember ahh:MezzanineLoanMember 2020-04-01 2020-06-30 0001569187 ahh:NextonSquareMember ahh:MezzanineLoanMember 2019-01-01 2019-06-30 0001569187 ahh:TheResidencesAtAnnapolisJunctionMember ahh:MezzanineLoanMember 2020-01-01 2020-06-30 0001569187 ahh:MezzanineLoanMember 2019-01-01 2019-06-30 0001569187 ahh:DelrayPlazaMember ahh:MezzanineLoanMember 2019-01-01 2019-06-30 0001569187 ahh:OtherNotesReceivableMember 2020-01-01 2020-06-30 0001569187 ahh:NextonSquareMember ahh:MezzanineLoanMember 2020-04-01 2020-06-30 0001569187 ahh:NorthDecaturSquareMember ahh:MezzanineLoanMember 2020-04-01 2020-06-30 0001569187 ahh:PointStreetApartmentsBaltimoreMarylandMember ahh:MezzanineLoanMember 2020-01-01 2020-06-30 0001569187 ahh:InterlockResidentialMember ahh:MezzanineLoanMember 2019-04-01 2019-06-30 0001569187 ahh:InterlockResidentialMember ahh:MezzanineLoanMember 2019-01-01 2019-06-30 0001569187 ahh:NorthDecaturSquareMember ahh:MezzanineLoanMember 2020-01-01 2020-06-30 0001569187 ahh:DelrayPlazaMember ahh:MezzanineLoanMember 2020-01-01 2020-06-30 0001569187 ahh:DelrayPlazaMember ahh:MezzanineLoanMember 2020-04-01 2020-06-30 0001569187 ahh:MezzanineLoanMember 2019-04-01 2019-06-30 0001569187 ahh:PointStreetApartmentsBaltimoreMarylandMember ahh:MezzanineLoanMember 2019-01-01 2019-06-30 0001569187 ahh:NorthDecaturSquareMember ahh:MezzanineLoanMember 2019-01-01 2019-06-30 0001569187 ahh:TheResidencesAtAnnapolisJunctionMember ahh:MezzanineLoanMember 2019-04-01 2019-06-30 0001569187 ahh:TheResidencesAtAnnapolisJunctionMember ahh:MezzanineLoanMember 2020-04-01 2020-06-30 0001569187 ahh:InterlockCommercialMember ahh:MezzanineLoanMember 2020-01-01 2020-06-30 0001569187 ahh:NorthDecaturSquareMember ahh:MezzanineLoanMember 2019-04-01 2019-06-30 0001569187 ahh:OtherNotesReceivableMember 2020-04-01 2020-06-30 0001569187 ahh:InterlockCommercialMember ahh:MezzanineLoanMember 2019-01-01 2019-06-30 0001569187 ahh:InterlockCommercialMember ahh:MezzanineLoanMember 2019-04-01 2019-06-30 0001569187 ahh:InterlockCommercialMember ahh:MezzanineLoanMember 2020-04-01 2020-06-30 0001569187 ahh:InterlockResidentialMember ahh:MezzanineLoanMember 2020-01-01 2020-06-30 0001569187 ahh:NextonSquareMember ahh:MezzanineLoanMember 2020-01-01 2020-06-30 0001569187 ahh:TheResidencesAtAnnapolisJunctionMember ahh:MezzanineLoanMember 2019-01-01 2019-06-30 0001569187 ahh:MezzanineLoanMember 2020-01-01 2020-06-30 0001569187 ahh:NextonSquareMember ahh:MezzanineLoanMember 2019-04-01 2019-06-30 0001569187 ahh:MezzanineLoanMember us-gaap:SubstandardMember 2020-06-30 0001569187 ahh:MezzanineLoanMember us-gaap:PassMember 2020-06-30 0001569187 ahh:MezzanineLoanMember us-gaap:SpecialMentionMember 2020-06-30 0001569187 srt:MinimumMember 2020-07-01 2020-06-30 0001569187 us-gaap:ConstructionMember 2020-06-30 0001569187 srt:MaximumMember 2020-07-01 2020-06-30 0001569187 ahh:PortionAttributableToPendingContractsMember 2019-12-31 0001569187 us-gaap:ConstructionMember 2019-12-31 0001569187 ahh:PortionAttributableToPendingContractsMember 2020-06-30 0001569187 us-gaap:ConstructionLoansMember 2020-01-01 2020-06-30 0001569187 srt:MinimumMember ahh:SeniorUnsecuredTermLoanFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-01-01 2020-06-30 0001569187 us-gaap:RevolvingCreditFacilityMember 2020-06-30 0001569187 ahh:SeniorUnsecuredTermLoanFacilityMember 2020-06-30 0001569187 ahh:OperatingPartnershipMember us-gaap:RevolvingCreditFacilityMember ahh:NewCreditFacilityMember 2020-06-30 0001569187 srt:MaximumMember ahh:SeniorUnsecuredTermLoanFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-01-01 2020-06-30 0001569187 ahh:OperatingPartnershipMember us-gaap:RevolvingCreditFacilityMember ahh:NewCreditFacilityMember 2019-10-03 0001569187 ahh:OperatingPartnershipMember ahh:SeniorUnsecuredTermLoanFacilityMember ahh:NewCreditFacilityMember 2020-06-30 0001569187 ahh:OperatingPartnershipMember us-gaap:RevolvingCreditFacilityMember ahh:NewCreditFacilityMember 2019-10-03 2019-10-03 0001569187 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-01-01 2020-06-30 0001569187 ahh:OperatingPartnershipMember ahh:SeniorUnsecuredTermLoanFacilityMember ahh:NewCreditFacilityMember 2019-10-03 0001569187 ahh:OperatingPartnershipMember us-gaap:RevolvingCreditFacilityMember ahh:NewCreditFacilityMember 2019-12-31 0001569187 ahh:OperatingPartnershipMember ahh:NewCreditFacilityMember 2019-10-03 0001569187 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-01-01 2020-06-30 0001569187 ahh:OperatingPartnershipMember ahh:SeniorUnsecuredTermLoanFacilityMember ahh:NewCreditFacilityMember 2019-12-31 0001569187 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-06-30 0001569187 ahh:OperatingPartnershipMember us-gaap:RevolvingCreditFacilityMember ahh:NewCreditFacilityMember 2019-01-31 2019-01-31 0001569187 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-06-30 0001569187 us-gaap:InterestRateSwapMember 2019-01-01 2019-06-30 0001569187 us-gaap:InterestRateCapMember 2019-04-01 2019-06-30 0001569187 us-gaap:InterestRateCapMember 2019-01-01 2019-06-30 0001569187 us-gaap:InterestRateCapMember 2020-01-01 2020-06-30 0001569187 us-gaap:InterestRateSwapMember 2019-04-01 2019-06-30 0001569187 us-gaap:InterestRateCapMember 2020-04-01 2020-06-30 0001569187 us-gaap:InterestRateSwapMember 2020-01-01 2020-06-30 0001569187 us-gaap:InterestRateSwapMember 2020-04-01 2020-06-30 0001569187 ahh:SeniorUnsecuredTermLoan0.55Member us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-30 0001569187 ahh:A249CentralParkRetailFountainPlazaRetailAndSouthRetailMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-30 0001569187 ahh:SeniorUnsecuredTermLoan2.26Member us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-30 0001569187 ahh:SeniorUnsecuredTermLoan3.02Member us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-30 0001569187 ahh:SeniorUnsecuredTermLoan0.50TermLoanTwoMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-30 0001569187 ahh:SeniorUnsecuredTermLoan2.78Member us-gaap:InterestRateSwapMember us-gaap:NondesignatedMember 2020-06-30 0001569187 ahh:JohnsHopkinsVillageMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-30 0001569187 ahh:SeniorUnsecuredTermLoan0.50TermLoanOneMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-30 0001569187 us-gaap:InterestRateSwapMember 2020-06-30 0001569187 ahh:ThamesStreetWharfMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-30 0001569187 us-gaap:InterestRateCapMember us-gaap:NondesignatedMember us-gaap:LondonInterbankOfferedRateLIBORMember 2018-12-11 0001569187 us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-01-28 0001569187 us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-01-10 0001569187 us-gaap:InterestRateCapMember us-gaap:NondesignatedMember us-gaap:LondonInterbankOfferedRateLIBORMember 2018-07-16 0001569187 us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-06-29 0001569187 us-gaap:InterestRateCapMember us-gaap:NondesignatedMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-05-15 0001569187 us-gaap:InterestRateCapMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-06-30 0001569187 us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-02-28 0001569187 us-gaap:NondesignatedMember 2019-12-31 0001569187 us-gaap:InterestRateSwapMember us-gaap:NondesignatedMember 2019-12-31 0001569187 us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-30 0001569187 us-gaap:InterestRateSwapMember us-gaap:NondesignatedMember 2020-06-30 0001569187 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001569187 us-gaap:InterestRateCapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001569187 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-30 0001569187 us-gaap:InterestRateCapMember us-gaap:NondesignatedMember 2020-06-30 0001569187 us-gaap:NondesignatedMember 2020-06-30 0001569187 us-gaap:InterestRateCapMember us-gaap:NondesignatedMember 2019-12-31 0001569187 us-gaap:SeriesAPreferredStockMember us-gaap:SubsequentEventMember ahh:TheAmendmentsAttheMarketContinuousEquityProgramMember 2020-08-05 2020-08-05 0001569187 us-gaap:NoncontrollingInterestMember 2020-06-30 0001569187 us-gaap:CommonStockMember 2020-04-02 2020-04-02 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember ahh:AtTheMarketProgramMember 2020-03-10 2020-03-10 0001569187 us-gaap:CommonStockMember 2020-01-02 2020-01-02 0001569187 us-gaap:SeriesAPreferredStockMember ahh:TheAmendmentsAttheMarketContinuousEquityProgramMember 2020-01-01 2020-06-30 0001569187 us-gaap:CommonStockMember ahh:TheAmendmentsAttheMarketContinuousEquityProgramMember 2020-01-01 2020-03-31 0001569187 ahh:OperatingPartnershipMember us-gaap:CapitalUnitClassAMember 2020-04-02 2020-04-02 0001569187 us-gaap:CommonStockMember ahh:TheAmendmentsAttheMarketContinuousEquityProgramMember 2020-01-01 2020-06-30 0001569187 us-gaap:CommonStockMember ahh:TheAmendmentsAttheMarketContinuousEquityProgramMember 2020-06-30 0001569187 us-gaap:SeriesAPreferredStockMember ahh:TheAmendmentsAttheMarketContinuousEquityProgramMember 2020-06-30 0001569187 us-gaap:CapitalUnitClassAMember 2020-06-30 0001569187 ahh:OperatingPartnershipMember us-gaap:CapitalUnitClassAMember 2020-01-02 2020-01-02 0001569187 us-gaap:CommonStockMember ahh:TheAmendmentsAttheMarketContinuousEquityProgramMember 2020-03-31 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember 2020-01-15 2020-01-15 0001569187 ahh:OperatingPartnershipMember us-gaap:NoncontrollingInterestMember 2020-06-30 0001569187 ahh:OperatingPartnershipMember ahh:ConsolidatedEntitiesUnderDevelopmentOrConstructionMember 2019-12-31 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember 2020-04-15 2020-04-15 0001569187 ahh:PointStreetApartmentsBaltimoreMarylandMember us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember us-gaap:PreferredStockMember us-gaap:SubsequentEventMember 2020-07-30 2020-07-30 0001569187 us-gaap:CommonStockMember ahh:AttheMarketContinuousEquityProgramMember 2019-08-06 2019-08-06 0001569187 ahh:TheAmendmentsAttheMarketContinuousEquityProgramMember 2020-01-01 2020-03-31 0001569187 ahh:AmendedandRestated2013EquityIncentivePlanMember 2020-06-30 0001569187 us-gaap:RestrictedStockMember 2020-01-01 2020-06-30 0001569187 us-gaap:RestrictedStockMember 2020-06-30 0001569187 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-06-30 0001569187 us-gaap:RestrictedStockUnitsRSUMember ahh:LongTermIncentivePlanMember 2020-01-01 2020-06-30 0001569187 us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2020-01-01 2020-06-30 0001569187 us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2020-01-01 2020-06-30 0001569187 us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2020-01-01 2020-06-30 0001569187 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-06-30 0001569187 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0001569187 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-06-30 0001569187 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0001569187 us-gaap:ConstructionContractsMember 2020-01-01 2020-06-30 0001569187 us-gaap:ConstructionContractsMember 2020-06-30 0001569187 us-gaap:ConstructionContractsMember 2019-12-31 0001569187 us-gaap:ConstructionContractsMember srt:ExecutiveOfficerMember 2020-01-01 2020-06-30 0001569187 us-gaap:ConstructionContractsMember srt:ExecutiveOfficerMember 2020-06-30 0001569187 us-gaap:ConstructionContractsMember srt:ExecutiveOfficerMember 2019-01-01 2019-12-31 0001569187 us-gaap:ConstructionContractsMember 2020-04-01 2020-06-30 0001569187 us-gaap:ConstructionContractsMember 2019-01-01 2019-06-30 0001569187 us-gaap:ConstructionContractsMember 2019-04-01 2019-06-30 0001569187 ahh:OperatingPartnershipMember ahh:TaxProtectionAgreementsMember 2013-05-13 2013-05-13 0001569187 ahh:OperatingPartnershipMember 2020-06-30 0001569187 ahh:InterlockCommercialMember us-gaap:FinancialGuaranteeMember 2020-06-30 0001569187 us-gaap:FinancialGuaranteeMember 2020-06-30 0001569187 ahh:TheResidencesAtAnnapolisJunctionMember us-gaap:FinancialGuaranteeMember 2020-06-30 0001569187 ahh:DelrayPlazaMember us-gaap:FinancialGuaranteeMember 2020-06-30 0001569187 ahh:InterlockFletcherRowMember us-gaap:FinancialGuaranteeMember 2020-06-30 0001569187 ahh:NextonSquareMember us-gaap:FinancialGuaranteeMember 2020-06-30 0001569187 ahh:OperatingPartnershipMember us-gaap:RevolvingCreditFacilityMember ahh:NewCreditFacilityMember us-gaap:SubsequentEventMember 2020-07-31 0001569187 us-gaap:SeriesAPreferredStockMember us-gaap:SubsequentEventMember ahh:AtTheMarketProgramMember 2020-07-01 2020-07-31 0001569187 ahh:OperatingPartnershipMember us-gaap:RevolvingCreditFacilityMember ahh:NewCreditFacilityMember us-gaap:SubsequentEventMember 2020-07-01 2020-07-31 0001569187 us-gaap:CommonStockMember us-gaap:SubsequentEventMember 2020-07-30 2020-07-30 0001569187 us-gaap:SubsequentEventMember ahh:AtTheMarketProgramMember 2020-07-01 2020-07-31 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember us-gaap:SubsequentEventMember 2020-07-15 2020-07-15 0001569187 ahh:OperatingPartnershipMember us-gaap:CommonClassAMember us-gaap:SubsequentEventMember 2020-07-01 2020-07-01 0001569187 us-gaap:SubsequentEventMember ahh:AtTheMarketProgramMember 2020-07-31 0001569187 us-gaap:ConstructionLoansMember us-gaap:SubsequentEventMember 2020-07-01 2020-07-31 0001569187 us-gaap:SeriesAPreferredStockMember us-gaap:SubsequentEventMember ahh:AtTheMarketProgramMember 2020-07-31 0001569187 us-gaap:RedeemableConvertiblePreferredStockMember us-gaap:SubsequentEventMember 2020-07-02 ahh:property xbrli:shares iso4217:USD xbrli:shares xbrli:pure iso4217:USD ahh:lease ahh:extension ahh:loan


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 FORM
10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the quarterly period ended June 30, 2020  
or 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the transition period from                      to                      
Commission File Number: 001-35908
 
ARMADA HOFFLER PROPERTIES, INC.
(Exact name of registrant as specified in its charter)
 
Maryland
46-1214914
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
222 Central Park Avenue
,
Suite 2100

Virginia Beach
,
Virginia
23462
(Address of principal executive offices)
(Zip Code)
 
(757) 366-4000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock, $0.01 par value per share
 
AHH
 
New York Stock Exchange
6.75% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share
 
AHHPrA
 
New York Stock Exchange
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes       No 
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).      Yes       No 
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. 
Large Accelerated Filer
 
Accelerated Filer
Non-Accelerated Filer
Smaller Reporting Company
 
 
Emerging Growth Company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ¨
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  
 Yes       No
As of August 5, 2020, the registrant had 57,933,586 shares of common stock, $0.01 par value per share, outstanding. In addition, as of August 5, 2020, Armada Hoffler, L.P., the registrant's operating partnership subsidiary, had 20,516,265 units of limited partnership interest ("OP Units") outstanding (other than OP Units held by the registrant).





ARMADA HOFFLER PROPERTIES, INC.
 
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2020
 
Table of Contents
 
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 






PART I. Financial Information
 
Item 1.    Financial Statements
 
ARMADA HOFFLER PROPERTIES, INC.
Condensed Consolidated Balance Sheets
(In thousands, except par value and share data)
 
 
June 30,
2020
 
December 31,
2019
 
 
(Unaudited)
 
 
ASSETS
 
 
 
 
Real estate investments:
 
 
 
 
Income producing property
 
$
1,431,527

 
$
1,460,723

Held for development
 
13,607

 
5,000

Construction in progress
 
108,444

 
140,601

 
 
1,553,578

 
1,606,324

Accumulated depreciation
 
(232,108
)
 
(224,738
)
Net real estate investments
 
1,321,470

 
1,381,586

Real estate investments held for sale
 

 
1,460

Cash and cash equivalents
 
70,979

 
39,232

Restricted cash
 
4,132

 
4,347

Accounts receivable, net
 
28,461

 
23,470

Notes receivable, net
 
182,245

 
159,371

Construction receivables, including retentions, net
 
42,787

 
36,361

Construction contract costs and estimated earnings in excess of billings, net
 
333

 
249

Operating lease right-of-use assets
 
32,907

 
33,088

Finance lease right-of-use assets
 
23,837

 
24,130

Acquired lease intangible assets, net
 
55,832

 
68,702

Other assets
 
35,883

 
32,901

Total Assets
 
$
1,798,866

 
$
1,804,897

LIABILITIES AND EQUITY
 
 
 
 
Indebtedness, net
 
$
953,753

 
$
950,537

Accounts payable and accrued liabilities
 
22,705

 
17,803

Construction payables, including retentions
 
58,253

 
53,382

Billings in excess of construction contract costs and estimated earnings
 
9,320

 
5,306

Operating lease liabilities
 
41,550

 
41,474

Finance lease liabilities
 
17,928

 
17,903

Other liabilities
 
48,411

 
63,045

Total Liabilities
 
1,151,920

 
1,149,450

 
 
 
 
 
Stockholders’ equity:
 
 
 
 
Preferred stock, $0.01 par value, 100,000,000 shares authorized:
  6.75% Series A Cumulative Redeemable Perpetual Preferred Stock, 2,930,000 shares
  authorized, 2,533,830 and 2,530,000 shares issued and outstanding as of June 30, 2020 and
  December 31, 2019, respectively
 
63,346

 
63,250

Common stock, $0.01 par value, 500,000,000 shares authorized; 57,010,259 and 56,277,971 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively
 
570

 
563

Additional paid-in capital
 
460,339

 
455,680

Distributions in excess of earnings
 
(107,263
)
 
(106,676
)
Accumulated other comprehensive loss
 
(10,470
)
 
(4,240
)
Total stockholders’ equity
 
406,522

 
408,577

Noncontrolling interests in investment entities
 
582

 
4,462

Noncontrolling interests in Operating Partnership
 
239,842

 
242,408

Total Equity
 
646,946

 
655,447

Total Liabilities and Equity
 
$
1,798,866

 
$
1,804,897


See Notes to Condensed Consolidated Financial Statements.

1



ARMADA HOFFLER PROPERTIES, INC.
Condensed Consolidated Statements of Comprehensive Income 
(In thousands, except per share data)
(Unaudited)
 
 
Three Months Ended 
June 30,
 
Six Months Ended 
June 30,
 
 
2020
 
2019
 
2020
 
2019
Revenues
 
 
 
 
 
 
 
 
Rental revenues
 
$
39,915

 
$
36,378

 
$
82,204

 
$
67,287

General contracting and real estate services revenues
 
57,398

 
21,444

 
104,666

 
38,480

Total revenues
 
97,313

 
57,822

 
186,870

 
105,767

Expenses
 
 
 
 
 
 
 
 
Rental expenses
 
8,309

 
7,915

 
17,684

 
14,640

Real estate taxes
 
4,233

 
3,451

 
8,566

 
6,579

General contracting and real estate services expenses
 
55,342

 
20,123

 
100,892

 
36,409

Depreciation and amortization
 
13,777

 
13,505

 
28,056

 
23,409

Amortization of right-of-use assets - finance leases
 
146

 
85

 
293

 
85

General and administrative expenses
 
2,988

 
2,951

 
6,781

 
6,352

Acquisition, development and other pursuit costs
 
502

 
57

 
529

 
457

Impairment charges
 

 

 
158

 

Total expenses
 
85,297

 
48,087

 
162,959

 
87,931

Gain on real estate dispositions
 
2,776

 

 
2,776

 

Operating income
 
14,792

 
9,735

 
26,687

 
17,836

Interest income
 
4,412

 
5,593

 
11,638

 
10,912

Interest expense on indebtedness
 
(6,999
)
 
(7,491
)
 
(14,958
)
 
(13,377
)
Interest expense on finance leases
 
(228
)
 
(112
)
 
(457
)
 
(112
)
Equity in income of unconsolidated real estate entities
 

 

 

 
273

Change in fair value of interest rate derivatives
 
(6
)
 
(1,933
)
 
(1,742
)
 
(3,396
)
Unrealized credit loss release (provision)
 
117

 

 
(260
)
 

Other income (expense), net
 
286

 
4

 
344

 
64

Income before taxes
 
12,374

 
5,796

 
21,252

 
12,200

Income tax benefit (provision)
 
(65
)
 
30

 
192

 
140

Net income
 
12,309

 
5,826

 
21,444

 
12,340

Net (income) loss attributable to noncontrolling interests:
 
 
 
 
 
 
 
 
Investment entities
 
44

 
320

 
136

 
320

Operating Partnership
 
(3,051
)
 
(1,580
)
 
(5,286
)
 
(3,210
)
Net income attributable to Armada Hoffler Properties, Inc.
 
9,302

 
4,566

 
16,294

 
9,450

Preferred stock dividends
 
(1,175
)
 
(154
)
 
(2,242
)
 
(154
)
Net income attributable to common stockholders
 
$
8,127

 
$
4,412

 
$
14,052

 
$
9,296

Net income attributable to common stockholders per share (basic and diluted)
 
$
0.14

 
$
0.08

 
$
0.25

 
$
0.18

Weighted-average common shares outstanding (basic and diluted)
 
56,668

 
52,451

 
56,533

 
51,692

 
 
 
 
 
 
 
 
 
Comprehensive income:
 
 

 
 

 
 

 
 

Net income
 
$
12,309

 
$
5,826

 
$
21,444

 
$
12,340

Unrealized cash flow hedge losses
 
(2,279
)
 
(3,459
)
 
(9,768
)
 
(4,462
)
Realized cash flow hedge losses reclassified to net income
 
798

 
35

 
1,190

 
107

Comprehensive income
 
10,828

 
2,402

 
12,866

 
7,985

Comprehensive (income) loss attributable to noncontrolling interests:
 
 
 
 
 
 
 
 
Investment entities
 
44

 
320

 
136

 
320

Operating Partnership
 
(2,646
)
 
(677
)
 
(2,937
)
 
(2,074
)
Comprehensive income attributable to Armada Hoffler Properties, Inc.
 
$
8,226

 
$
2,045

 
$
10,065

 
$
6,231


See Notes to Condensed Consolidated Financial Statements.

2



ARMADA HOFFLER PROPERTIES, INC.
Condensed Consolidated Statements of Equity

(In thousands, except share data)
(Unaudited)
 
 
Preferred stock
 
Common stock
 
Additional paid-in capital
 
Distributions in excess of earnings
 
Accumulated other comprehensive loss
 
Total stockholders' equity
 
Noncontrolling interests in investment entities
 
Noncontrolling interests in Operating Partnership
 
Total equity
Balance, December 31, 2019
 
$
63,250

 
$
563

 
$
455,680

 
$
(106,676
)
 
$
(4,240
)
 
$
408,577

 
$
4,462

 
$
242,408

 
$
655,447

Cumulative effect of accounting change(1)
 

 

 

 
(2,185
)
 

 
(2,185
)
 

 
(824
)
 
(3,009
)
Net income (loss)
 

 

 

 
6,992

 

 
6,992

 
(92
)
 
2,235

 
9,135

Unrealized cash flow hedge losses
 

 

 

 

 
(5,438
)
 
(5,438
)
 

 
(2,051
)
 
(7,489
)
Realized cash flow hedge losses reclassified to net income
 

 

 

 

 
285

 
285

 

 
107

 
392

Net proceeds from issuance of common stock
 

 
1

 
1,348

 

 

 
1,349

 

 

 
1,349

Restricted stock awards, net of tax withholding
 

 
1

 
782

 

 

 
783

 

 

 
783

Restricted stock award forfeitures
 

 

 
(6
)
 

 

 
(6
)
 

 

 
(6
)
Dividends declared on preferred stock
 

 

 

 
(1,067
)
 

 
(1,067
)
 

 

 
(1,067
)
Dividends and distributions declared on common shares and units ($0.22 per share and unit)
 

 

 

 
(12,454
)
 

 
(12,454
)
 

 
(4,680
)
 
(17,134
)
Balance, March 31, 2020
 
63,250

 
565

 
457,804

 
(115,390
)
 
(9,393
)
 
396,836

 
4,370

 
237,195

 
638,401

Net income (loss)
 

 

 

 
9,302

 

 
9,302

 
(44
)
 
3,051

 
12,309

Unrealized cash flow hedge losses
 

 

 

 

 
(1,657
)
 
(1,657
)
 

 
(622
)
 
(2,279
)
Realized cash flow hedge losses reclassified to net income
 

 

 

 

 
580

 
580

 

 
218

 
798

Net proceeds from issuance of cumulative redeemable perpetual preferred stock
 
96

 

 
(5
)
 

 

 
91

 

 

 
91

Net proceeds from issuance of common stock
 

 
5

 
4,411

 

 

 
4,416

 

 

 
4,416

Restricted stock awards, net of tax withholding
 

 

 
516

 

 

 
516

 

 

 
516

Restricted stock award forfeitures
 

 

 
(1
)
 

 

 
(1
)
 

 

 
(1
)
Acquisition of noncontrolling interest in real estate entity
 

 

 
(2,386
)
 

 

 
(2,386
)
 
(3,744
)
 

 
(6,130
)
Dividends declared on preferred stock
 

 

 

 
(1,175
)
 

 
(1,175
)
 

 

 
(1,175
)
Balance, June 30, 2020
 
$
63,346

 
$
570

 
$
460,339

 
$
(107,263
)
 
$
(10,470
)
 
$
406,522

 
$
582

 
$
239,842

 
$
646,946


(1) The Company recorded cumulative effect adjustments related to the new Current Expected Credit Losses ("CECL") standard in the first quarter of 2020. See "Financial Statements — Note 2 — Significant Accounting Policies — Recent Accounting Pronouncements” for additional information.

3



 
 
Preferred stock
 
Common stock
 
Additional paid-in capital
 
Distributions in excess of earnings
 
Accumulated other comprehensive loss
 
Total stockholders' equity
 
Noncontrolling interests in investment entities
 
Noncontrolling interests in Operating Partnership
 
Total equity
Balance, December 31, 2018
 
$

 
$
500

 
$
357,353

 
$
(82,699
)
 
$
(1,283
)
 
$
273,871

 
$

 
$
182,019

 
$
455,890

Cumulative effect of accounting change (2)
 

 

 

 
(125
)
 

 
(125
)
 

 
(42
)
 
(167
)
Net income
 

 

 

 
4,884

 

 
4,884

 

 
1,630

 
6,514

Unrealized cash flow hedge losses
 

 

 

 

 
(752
)
 
(752
)
 

 
(251
)
 
(1,003
)
Realized cash flow hedge losses reclassified to net income
 

 

 

 

 
54

 
54

 

 
18

 
72

Net proceeds from issuance of common stock
 

 
21

 
30,185

 

 

 
30,206

 

 

 
30,206

Restricted stock awards, net of tax withholding
 

 
1

 
754

 

 

 
755

 

 

 
755

Restricted stock award forfeitures
 

 

 
(4
)
 

 

 
(4
)
 

 

 
(4
)
Redemption of operating partnership units
 

 
1

 
1,259

 

 

 
1,260

 

 
(1,260
)
 

Dividends and distributions declared on common shares and units ($0.21 per share and unit)
 

 

 

 
(11,009
)
 

 
(11,009
)
 

 
(3,568
)
 
(14,577
)
Balance, March 31, 2019
 

 
523

 
389,547

 
(88,949
)
 
(1,981
)
 
299,140

 

 
178,546

 
477,686

Net income (loss)
 

 

 

 
4,566

 

 
4,566

 
(320
)
 
1,580

 
5,826

Unrealized cash flow hedge losses
 

 

 

 

 
(2,547
)
 
(2,547
)
 

 
(912
)
 
(3,459
)
Realized cash flow hedge losses reclassified to net income
 

 

 

 

 
26

 
26

 

 
9

 
35

Net proceeds from issuance of cumulative redeemable perpetual preferred stock
 
63,250

 

 
(2,249
)
 

 

 
61,001

 

 

 
61,001

Net proceeds from issuance of common stock
 

 
4

 
7,494

 

 

 
7,498

 

 

 
7,498

Restricted stock awards, net of tax withholding
 

 
1

 
463

 

 

 
464

 

 

 
464

Noncontrolling interest in acquired real estate entity
 

 

 

 

 

 

 
4,870

 

 
4,870

Issuance of operating partnership units for acquisitions
 

 

 
(986
)
 

 

 
(986
)
 

 
69,061

 
68,075

Dividends and distributions declared on common shares and units ($0.21 per share and unit)
 

 

 

 
(11,107
)
 

 
(11,107
)
 

 
(4,447
)
 
(15,554
)
Balance, June 30, 2019
 
$
63,250

 
$
528

 
$
394,269

 
$
(95,490
)
 
$
(4,502
)
 
$
358,055

 
$
4,550

 
$
243,837

 
$
606,442


(2) The Company recorded cumulative effect adjustments related to the new lease standard in the first quarter of 2019.

See Notes to Condensed Consolidated Financial Statements.

4



ARMADA HOFFLER PROPERTIES, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)(Unaudited)
 
 
Six Months Ended 
June 30,
 
 
2020
 
2019
OPERATING ACTIVITIES
 
 
 
 
Net income
 
$
21,444

 
$
12,340

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation of buildings and tenant improvements
 
20,814

 
16,902

Amortization of leasing costs, in-place lease intangibles and below market ground rents - operating leases
 
7,242

 
6,507

Accrued straight-line rental revenue
 
(1,510
)
 
(2,208
)
Amortization of leasing incentives and above or below-market rents
 
(414
)
 
(97
)
Amortization of right-of-use assets - finance leases
 
293

 
85

Accrued straight-line ground rent expense
 
7

 
56

Provision for unrealized credit losses
 
260

 

Adjustment for uncollectable lease accounts
 
1,486

 
9

Noncash stock compensation
 
1,451

 
1,017

Impairment charges
 
158

 

Noncash interest expense
 
854

 
589

Interest expense on finance leases
 
457

 
112

Gain on real estate dispositions
 
(2,776
)
 

Adjustment for Annapolis Junction loan discount amortization (1)
 

 
(2,356
)
Change in fair value of interest rate derivatives
 
1,742

 
3,396

Equity in income of unconsolidated real estate entities
 

 
(273
)
Changes in operating assets and liabilities:
 
 
 
 
Property assets
 
(4,544
)
 
2,275

Property liabilities
 
2,932

 
(2,841
)
Construction assets
 
(6,556
)
 
4,142

Construction liabilities
 
18,047

 
(4,004
)
Interest receivable
 
(11,633
)
 
(7,539
)
Net cash provided by operating activities
 
49,754

 
28,112

INVESTING ACTIVITIES
 
 
 
 
Development of real estate investments
 
(39,854
)
 
(75,679
)
Tenant and building improvements
 
(5,003
)
 
(12,519
)
Acquisitions of real estate investments, net of cash received
 
(8,853
)
 
(133,345
)
Dispositions of real estate investments, net of selling costs
 
89,383

 
1,014

Notes receivable issuances
 
(17,599
)
 
(25,355
)
Notes receivable paydowns
 
2,413

 
1,692

Leasing costs
 
(1,656
)
 
(1,883
)
Leasing incentives
 
(1,179
)
 

Contributions to equity method investments
 

 
(535
)
Net cash used for investing activities
 
17,652

 
(246,610
)
FINANCING ACTIVITIES
 
 
 
 
Proceeds from issuance of cumulative redeemable perpetual preferred stock, net
 
91

 
61,001

Proceeds from issuance of common stock, net
 
5,765

 
37,704

Common shares tendered for tax withholding
 
(534
)
 
(344
)
Debt issuances, credit facility and construction loan borrowings
 
74,672

 
291,392

Debt and credit facility repayments, including principal amortization
 
(80,283
)
 
(138,175
)
Debt issuance costs
 
(36
)
 
(3,167
)
Dividends and distributions
 
(35,549
)
 
(28,003
)
Net cash provided by financing activities
 
(35,874
)
 
220,408

Net increase (decrease) in cash, cash equivalents, and restricted cash
 
31,532

 
1,910

Cash, cash equivalents, and restricted cash, beginning of period
 
43,579

 
24,051

Cash, cash equivalents, and restricted cash, end of period (2)
 
$
75,111

 
$
25,961

See Notes to Condensed Consolidated Financial Statements.

5



ARMADA HOFFLER PROPERTIES, INC.
Condensed Consolidated Statements of Cash Flows (Continued)
(In thousands)(Unaudited)
 
 
Six Months Ended 
June 30,
 
 
2020
 
2019
Supplemental Disclosures (noncash transactions):
 
 
 
 
(Decrease) increase in dividends and distributions payable
 
$
(16,173
)
 
$
2,128

(Decrease) increase in accrued capital improvements and development costs
 
(8,622
)
 
(9,861
)
Note payable issued in acquisition of noncontrolling interest in real estate investment
 
6,130

 

Issuance of operating partnership units for acquisitions
 

 
69,061

Operating Partnership units redeemed for common shares
 

 
1,260

Debt assumed at fair value in conjunction with real estate purchases
 

 
101,390

Note receivable extinguished in conjunction with real estate purchase