1 1Q21 SUPPLEMENTAL FINANCIAL PACKAGE
2 TABLE OF CONTENTS Forward-Looking Statements Corporate Profile Highlights 2021 Outlook & Assumptions Summary Information Net Asset Value Component Data Summary Balance Sheet Summary Income Statement FFO, Normalized FFO & Adjusted FFO Outstanding Debt Debt Information Core Debt to Core EBITDA Capitalization & Financial Ratios Property Portfolio Development Pipeline Mezzanine Investments Acquisitions & Dispositions Construction Business Summary Same Store NOI by Segment Top 10 Tenants by Annualized Base Rent Lease Summary Office Lease Expirations Retail Lease Expirations COVID-19 Effect Appendix – Definitions & Reconciliations Same Store vs Non-Same Store Reconciliation to Core EBITDA Reconciliation to Property Portfolio NOI Reconciliation to GAAP Net Income 03 04 05 06 07 08 09 10 11 12 13 14 15 16 18 20 21 22 23 24 25 26 27 28 29 33 34 35 36
3 This Supplemental Financial Package should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated May 4, 2021, which has been furnished as Exhibit 99.1 to our Form 8-K filed on May 4, 2021. The Company makes statements in this Supplemental Financial Package 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”)). 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 and estimated costs, financing activities, and the Company’s financial outlook 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, 2020 and the other documents filed by the Company with the Securities and Exchange Commission (the “SEC”) from time to time. The Company’s actual future results and trends may differ materially from expectations depending on a variety of factors discussed in the Company’s filings with the SEC. These factors include, without limitation: (a) the impact of the coronavirus (COVID-19) pandemic on macroeconomic conditions and economic conditions in the markets in which the Company operates, including, among others: (i) disruptions in, or a lack of access to, the capital markets or disruptions in the Company’s ability to borrow amounts subject to existing construction loan commitments; (ii) adverse impacts to the Company’s tenants’ and other third parties’ businesses and financial conditions that adversely affect the ability and willingness of the Company’s tenants and other third parties to satisfy their rent and other obligations to the Company, including deferred rent; (iii) the ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration of the leases or to re-lease the Company’s properties on the same or better terms in the event of nonrenewal or early termination of existing leases; and (iv) federal, state and local government initiatives to mitigate the impact of the COVID-19 pandemic, including additional restrictions on business activities, shelter-in place orders and other restrictions, and the timing and amount of economic stimulus or other initiatives; (b) the Company’s ability to continue construction on development and construction projects, in each case on the timeframes and on terms currently anticipated; (c) the Company’s ability to accurately assess and predict the impact of the COVID-19 pandemic on its results of operations, financial condition, dividend policy, acquisition and disposition activities and growth opportunities; and (d) the Company’s ability to maintain compliance with the covenants under its existing debt agreements or to obtain modifications to such covenants from the applicable lenders. The Company expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. FORWARD-LOOKING STATEMENTS
4 BOARD OF DIRECTORS Daniel A. Hoffler, Executive Chairman of the Board Louis S. Haddad, Vice Chairman of the Board James C. Cherry, Lead Independent Director George F. Allen, Independent Director James A. Carroll, Independent Director Eva S. Hardy, Independent Director A. Russell Kirk, Director Dorothy S. McAuliffe, Independent Director John W. Snow, Independent Director CORPORATE OFFICERS Louis S. Haddad, President and Chief Executive Officer Michael P. O’Hara, Chief Financial Officer Shawn J. Tibbetts, Chief Operating Officer Eric E. Apperson, President of Construction Shelly R. Hampton, President of Asset Management Robert W. Baird & Co. David Rodgers (216) 737-7341 drodgers@rwbaird.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 Bank of America Merrill Lynch James Feldman/Elvis Rodriguez (646) 855-5808/(646) 855-1589 james.feldman@bofa.com/rodrigueze@bofa.com ANALYST COVERAGE Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust with four decades of experience developing, building, acquiring and managing high-quality office, retail and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. The Company also provides general construction and development services to third-party clients, in addition to developing and building properties to be placed in their stabilized portfolio. Founded in 1979 by Daniel A. Hoffler, Armada Hoffler has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information visit ArmadaHoffler.com. CORPORATE PROFILE
5 HIGHLIGHTS • Net income attributable to common stockholders and OP Unit holders of $3.1 million, or $0.04 per diluted share, compared to $8.2 million, or $0.11 per diluted share, for the three months ended March 31, 2020. • Funds from operations attributable to common stockholders and OP Unit holders ("FFO") of $20.8 million, or $0.26 per diluted share, compared to $22.3 million, or $0.29 per diluted share, for the three months ended March 31, 2020. See "Non-GAAP Financial Measures." • Normalized funds from operations attributable to common stockholders and OP Unit holders ("Normalized FFO") of $20.6 million, or $0.26 per diluted share, compared to $24.7 million, or $0.32 per diluted share, for the three months ended March 31, 2020. • Announced a second quarter cash dividend of $0.16 per common share, resulting in the second consecutive quarter of dividend increases and a 45.5% cumulative increase year-to-date. • Reaffirmed 2021 full-year Normalized FFO guidance of $0.98 to $1.02 per diluted share. • Core operating property portfolio occupancy at 94.0% as of March 31, 2021 compared to 94.4% as of December 31, 2020. The Company's March 31, 2021 occupancy includes office at 97.2%, retail at 93.9%, and multifamily at 92.2% (conventional multifamily was 95.8% and student housing was 85.0%). • Positive releasing spreads on office and retail lease renewals during the first quarter of 6.1% on a GAAP basis and 0.6% on a cash basis. • Completed the sale of Oakland Marketplace, an unencumbered Kroger-anchored center, for gross proceeds of $5.5 million. • Completed the off-market acquisition of Delray Beach Plaza, a Whole Foods-anchored center in Delray Beach, FL. • Leased nearly 60,000 square feet of commercial office and retail space since our last update. • Subsequent to quarter end, refinanced Southgate Square, the last of the Company's debt maturing in 2021. • Board of Directors reaffirmed the Company’s commitment to leadership in corporate governance practices by amending the Company’s bylaws to implement a “proxy access” provision that enables eligible long-term stockholders to nominate and include their own director nominees in the Company’s proxy materials, along with the candidates nominated by the Company’s Board of Directors. • Issued its 2020 Sustainability Report that highlights the Company's ongoing commitment to environmental, workplace health and safety, corporate social responsibility, corporate governance, and other sustainability matters over the course of 2020. The Sustainability Committee's 2020 Report can be accessed through the Sustainability page of the Company's website, ArmadaHoffler.com/Sustainability.
6 2021 OUTLOOK & ASSUMPTIONS OUTLOOK LOW HIGH TOTAL NOI $116.5M $117.5M CONSTRUCTION SEGMENT GROSS PROFIT $4.0M $5.5M G&A EXPENSES $14.5M $14.8M MEZZANINE INTEREST INCOME $17.7M $18.1M INTEREST EXPENSE(1) $31.3M $32.0M NORMALIZED FFO PER DILUTED SHARE $0.98 $1.02 • New $23M preferred equity mezzanine loan for Solis Nexton, which closed in April • Interest expense based on Forward LIBOR Curve, which forecasts rates ending the year at 0.19% • Opportunistic sale of common stock through the ATM program, resulting in a full year weighted average share count of 82.2M GUIDANCE ASSUMPTIONS (1) Excludes the interest expense on finance leases
7 SUMMARY INFORMATION $ IN THOUSANDS, EXCEPT PER SHARE DATE (1) Excludes GAAP adjustments. (2) Office and retail occupancy based on leased square feet as a % of respective total. (3) Multifamily and student housing occupancy based on occupied units/beds as a % of total (4) Regal leases which were terminated in October 2020 have been re-signed and included in occupancy for both quarters. Regal at Columbus Village II was re-signed after December 31, 2020. (5) Includes impact of seasonality related to student housing. (6) Total occupancy weighted by annualized base rent. Three months ended OPERATIONAL METRICS 3/31/2021 12/31/2020 9/30/2020 6/30/2020 Net income attributable to common stockholders and OP unit holders $3,122 $1,851 $8,651 $11,178 Net income per diluted share attributable to common stockholders and OP unit holders $0.04 $0.02 $0.11 $0.14 Normalized FFO attributable to common stockholders and OP unit holders 20,575 19,900 19,039 22,583 Normalized FFO per diluted share attributable to common stockholders and OP unit holders $0.26 $0.25 $0.24 $0.29 Annualized dividend yield 4.78% 3.92% 4.75% NA Core debt / Annualized core EBITDA 7.1x 6.6x 5.8x 6.5x Fixed charge coverage ratio 2.4x 2.3x 2.5x 3.0x CAPITALIZATION Common shares outstanding 59,894 59,073 57,934 57,010 Operating Partnership units outstanding 20,853 20,865 20,523 21,273 Common shares and Operating Partnership units outstanding 80,747 79,938 78,457 78,283 Market price per common share $12.54 $11.22 $9.26 $9.95 Common equity capitalization 1,012,568 896,904 726,512 778,916 Preferred equity capitalization 171,085 171,085 171,075 63,350 Total equity capitalization $1,183,653 $1,067,989 $897,587 $842,266 Total debt (1) 975,099 962,812 885,359 956,726 Total capitalization 2,158,752 2,030,801 1,782,946 1,798,992 Less: cash (34,588) (50,430) (79,224) (75,111) Total enterprise value $2,124,164 $1,980,371 $1,703,722 $1,723,881 STABILIZED PORTFOLIO OCCUPANCY Retail (2) 93.9% 94.7% (4) 94.2% (4) 95.1% Office (2) 97.2% 97.0% 96.7% 97.0% Multifamily (3) 92.2% 92.5% 95.9% 87.9% Weighted Average (6) 94.0% 94.4% 95.4% 93.6% PORTFOLIO METRICS (INCLUDING NON-STABILIZED) Net Operating Income (NOI) $29,603 $28,785 $24,653 $27,373 Total Number of Properties 57 57 55 52 Total Rentable Square Feet (RSF) 5,337,657 5,323,441 5,323,442 4,884,105 Retail Portfolio Net Operating Income $13,392 $13,500 $11,243 $14,249 Number of Properties 37 37 37 36 Net Rentable Square Feet 3,709,478 3,690,375 3,690,376 3,578,066 Office Portfolio Net Operating Income $7,402 $7,073 $7,039 $6,975 Number of Properties 8 8 8 7 Net Rentable Square Feet 1,628,179 1,633,066 1,633,066 1,306,039 Multifamily Portfolio Net Operating Income $8,809 $8,212 $6,371 $6,149 Number of Properties 12 12 10 9 Units 2,344 2,344 1,754 1,754 Beds 1,183 1,183 1,183 826
8 NET ASSET VALUE COMPONENT DATA $ IN THOUSANDS (1) NOI from non-stabilized portfolio and development pipeline excluded from stabilized portfolio. (2) Excludes expenses associated with the Company’s in-house asset management division of $0.7M for the 3 months ended 3/31/2021. (3) Includes leases for spaces occupied by Armada Hoffler which are eliminated for GAAP purposes. (4) Excludes lease right of use assets and lease liabilities. (5) Excludes GAAP adjustments. (6) Management’s assessment of comparable multifamily assets in the applicable market. Stabilized Portfolio NOI (Cash) (1) Third-Party General Contracting and Real Estate Services Three months ended 3/31/2021 Trailing 12 Months Office (3) Retail Multifamily Total General Contracting Gross Profit $7,244 Stable Portfolio Portfolio NOI (2) $7,108 $12,714 $8,778 $28,600 Non-Property Assets (4) Unstabilized Properties NOI (196) (226) - (422) As of 3/31/2021 Signed Leases Not Yet Occupied or In Free Rent Period 140 884 73 1,097 Cash and Retricted Cash $34,588 Net Deferrals and Recoveries (44) (380) - (424) Accounts Receivable 28,203 Stable Portfolio NOI $7,008 $12,992 $8,851 $28,851 Notes Receivable, Including Mezzanine and Equity Investments (5) 132,741 Intra-Quarter Transactions Construction receivables, including retentions (5) 30,895 Net Acquisitons - 237 - 237 Acquired lease intangible assets, net 60,006 Net Dispositions - (102) - (102) Equity method investments 4,967 Total $0 $135 $0 $135 Other Assets 38,108 Annualized $28,032 $52,507 $35,404 $115,943 Total Non-Property Assets $329,508 Liabilities (4) Non-Stabilized Portfolio As of 3/31/2021 As of 3/31/2021 Mortgages and Notes Payable (5) $975,099 Projects Under Development at Cost $33,000 Accounts Payable and Accrued Liabilities 15,587 Projects Delivered Not Stabilized at Cost 125,000 Construction Payables, Including Retentions 32,971 Projects Under Predevelopment or On Hold 9,000 Other Liabilities 59,707 Unconsolidated Joint Ventures 5,000 Total Liabilities $1,083,364 Total Non-Stabilized Portfolio $172,000 Preferred Equity Management's Estimate of Land Value and Vacancy Opportunities Liquidation Value Size Estimated Value (6) Series A Cumulative Redeemable Perpetual Preferred Stock $171,085 Harrisonburg MF Development Opportunity 228 units $20,000-30,000/unit Common Equity Size Net Rent PSF As of 3/31/2021 At Lease or LOI's on Vacant Space 73,000 sf $20/sf Total common shares outstanding 59,894 Total OP units outstanding 20,853 Total Common Shares & OP Units Outstanding 80,747
9 SUMMARY BALANCE SHEET $ IN THOUSANDS 3/31/2021 12/31/2020 Assets (Unaudited) Real estate investments: Income producing property $1,708,474 $1,680,943 Held for development 11,294 13,607 Construction in progress 69,298 63,367 Accumulated depreciation (265,400) (253,965) Net real estate investments 1,523,666 1,503,952 Real estate investments held for sale - 1,165 Cash and cash equivalents 24,762 40,998 Restricted cash 9,826 9,432 Accounts receivable, net 28,203 28,259 Notes receivable, net 133,206 135,432 Construction receivables, including retentions, net 30,712 38,735 Construction contract costs and estimated earnings in excess of bil l ings 54 138 Equity method investments 4,967 1,078 Operating lease right-of-use assets 32,704 32,760 Finance lease right-of-use assets 47,821 23,544 Acquired lease intangible assets 60,006 58,154 Other assets 38,054 43,324 Total Assets $1,933,981 $1,916,971 Liabilities and Equity Indebtedness, net $975,147 $963,845 Accounts payable and accrued liabilities 15,587 23,900 Construction payables, including retentions 32,971 49,821 Bil l ings in excess of costs and estimated earnings 3,062 6,088 Operating lease liabilities 41,694 41,659 Finance lease liabilities 45,917 17,954 Other l iabilities 58,851 56,902 Total Liabilities 1,173,229 1,160,169 Total Equity 760,752 756,802 Total Liabilities and Equity $1,933,981 $1,916,971 As of
10 SUMMARY INCOME STATEMENT IN THOUSANDS, EXCEPT PER SHARE DATA Three months ended 3/31/2021 3/31/2020 Revenues (Unaudited) Rental revenues $45,741 $42,289 General contracting and real estate services revenues 35,563 47,268 Total Revenues 81,304 89,557 Expenses Rental expenses 10,832 9,375 Real estate taxes 5,306 4,333 General contracting and real estate services expenses 34,275 45,550 Depreciation and amortization 18,066 14,279 Amortization of right-of-use assets - finance leases 189 147 General and administrative expenses 4,021 3,793 Acquisition, development and other pursuit costs 71 27 Impairment charges 3,039 158 Total Expenses 75,799 77,662 Gain on real estate dispositions 3,717 - Operating Income 9,222 11,895 Interest income 4,116 7,226 Interest expense on indebtedness (7,613) (7,959) Interest expense on finance leases (362) (229) Change in fair value of derivatives and other 393 (1,736) Unrealized credit loss release (provision) 55 (377) Other income (expense), net 179 58 Income before taxes 5,990 8,878 Income tax benefit 19 257 Net Income $6,009 $9,135 Net income attributable to noncontrolling interest in investment entities - 92 Preferred stock dividends (2,887) (1,067) Net income attributable to AHH and OP Unit holders $3,122 $8,160 Net income per diluted share and unit attributable to AHH and OP Unit holders $0.04 $0.11 Weighted Average Shares & Units - Diluted 80,276 77,671
11 FFO, NORMALIZED FFO & AFFO(1) IN THOUSANDS, EXCEPT PER SHARE DATA (1) See definitions on pages 30-31. (2) Adjusted for the depreciation attributable to noncontrolling interests in consolidated investments. (3) Excludes gain on the sale of easement rights at a non-operating parcel of $0.3M. (4) Related to Socastee Commons. (5) Excludes development, redevelopment, and first-generation space. (6) Includes non-cash interest expense relating to indebtedness and interest expense on finance leases Three months ended (Unaudited) 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Funds From Operations Net income attributable to AHH and OP unit holders $3,122 $1,851 $8,651 $11,178 $8,160 Net Income per diluted share $0.04 $0.02 $0.11 $0.14 $0.11 Depreciation and amortization 18,066 17,678 (2) 14,131 (2) 13,644 (2) 14,092 (2) Gains on dispositions of operating real estate (3,464) (3) - (3,612) (2,776) - Impairment of real estate assets 3,039 (4) - - - - FFO $20,763 $19,529 $19,170 $22,046 $22,252 FFO per diluted share $0.26 $0.25 $0.24 $0.28 $0.29 Normalized FFO Acquisition, development & other pursuit costs 71 29 26 502 27 Non cash GAAP Adjustments 134 636 161 29 682 Change in fair value of derivatives and other (393) (294) (318) 6 1,736 Normalized FFO $20,575 $19,900 $19,039 $22,583 $24,697 Normalized FFO per diluted share $0.26 $0.25 $0.24 $0.29 $0.32 Adjusted FFO Non-cash stock compensation 1,017 471 456 421 1,030 Acquisition, development & other pursuit costs (71) (29) (26) (502) (27) Tenant improvements, leasing commissions, lease incentives (5) (1,264) (1,924) (2,770) (728) (1,318) Property related capital expenditures (1,224) (2,500) (1,373) (2,316) (1,014) Adjustment for loan modification and exit fees (493) (493) (614) (614) (2,074) Non-cash interest expense (6) 988 934 874 673 638 Cash ground rent payment - finance lease (415) (291) (291) (241) (216) GAAP Adjustments (1,707) (1,940) (684) (6,295) (984) AFFO $17,406 $14,128 $14,611 $12,981 $20,732 AFFO per diluted share $0.22 $0.18 $0.19 $0.17 $0.27 Weighted Average Common Shares Outstanding 59,422 58,304 57,923 56,668 56,398 Weighted Average Operating Partnership Units Outstanding 20,854 20,867 20,520 21,273 21,273 Total Weighted Average Common Shares and OP Units Outstanding 80,276 79,171 78,443 77,941 77,671
12 OUTSTANDING DEBT $ IN THOUSANDS (1) Includes debt subject to interest rate swap locks. (2) Refinanced subsequent to quarter end, new rate and maturity reflected. (3) Subject to a LIBOR rate floor. Debt Stated Rate Effective Rate as of 3/31/2021 Maturity Date 2021 2022 2023 2024 2025 Thereafter Outstanding as of 3/31/2021 Secured Notes Payable - Core Debt Red Mill West 4.23% 4.23% Jun-2022 $350 $10,387 $10,737 Thames Street Wharf L+1.30% 1.81% (1) Jun-2022 - 70,000 70,000 Marketplace at Hilltop 4.42% 4.42% Oct-2022 313 9,705 10,018 1405 Point L+2.25% 2.36% Jan-2023 539 754 51,532 52,825 Socastee Commons 4.57% 4.57% Jan-2023 86 120 4,223 4,429 Nexton Square L+2.25% 2.50% (3) Feb-2023 - - 20,107 20,107 249 Central Park Retail L+1.60% 3.85% (1) Aug-2023 185 260 16,093 16,538 Fountain Plaza Retail L+1.60% 3.85% (1) Aug-2023 112 156 9,684 9,952 South Retail L+1.60% 3.85% (1) Aug-2023 81 114 7,066 7,261 Hoffler Place L+2.60% 3.00% (3) Jan-2024 - - 257 18,143 18,400 Summit Place L+2.60% 3.00% (3) Jan-2024 - - 311 22,789 23,100 One City Center L+1.85% 1.96% Apr-2024 476 659 691 22,734 24,560 Southgate Square (2) L+2.25% 3.00% (3) Apr-2024 473 729 751 17,509 19,462 Red Mill Central 4.80% 4.80% Jun-2024 131 175 175 1,838 2,319 Premier Apartments L+1.55% 1.66% Oct-2024 156 221 234 16,053 16,664 Red Mill South 3.57% 3.57% May-2025 237 327 338 351 4,502 5,755 Brooks Crossing Office L+1.60% 1.71% Jul-2025 378 513 521 530 13,325 15,267 Market at Mill Creek L+1.55% 1.66% Jul-2025 486 647 647 647 11,200 13,627 Johns Hopkins Village L+1.25% 4.19% (1) Aug-2025 738 1,031 1,075 1,116 46,649 50,609 North Point Center Note 2 7.25% 7.25% Sep-2025 106 151 162 174 1,467 2,060 Encore Apartments 2.93% 2.93% Feb-2026 395 540 556 573 590 22,306 24,960 4525 Main Street 2.93% 2.93% Feb-2026 506 692 713 734 756 28,580 31,981 Delray Beach Plaza L+3.00% 3.11% Mar-2026 91 127 131 134 138 13,852 14,473 Lexington Square 4.50% 4.50% Sep-2028 202 280 293 306 320 12,973 14,374 Red Mill North 4.73% 4.73% Dec-2028 79 110 116 121 127 3,715 4,268 Greenside Apartments 3.17% 3.17% Dec-2029 533 735 759 783 808 29,513 33,131 The Residences at Annapolis Junction SOFR +2.66% 2.67% Nov-2030 - - 147 1,753 1,809 80,666 84,375 Smith's Landing 4.05% 4.05% Jun-2035 661 917 956 994 1,037 12,547 17,112 Liberty Apartments 5.66% 5.66% Nov-2043 230 322 341 361 382 12,166 13,802 Edison Apartments 5.30% 5.30% Dec-2044 261 364 384 405 427 14,346 16,187 The Cosmopolitan 3.35% 3.35% Jul-2051 617 847 876 906 937 38,524 42,707 Total - Secured Core Debt 8,422 100,883 119,139 108,954 84,474 269,188 691,060 Secured Notes Payable - Development Pipeline Wills Wharf L+2.25% 2.36% Jun-2023 - - 60,831 60,831 Solis Gainesvil le L+3.00% 3.75% (3) Aug-2024 - Premier Retail L+1.55% 1.66% Oct-2024 77 109 115 7,907 8,208 Total - Development Pipeline 77 109 60,946 7,907 - - 69,039 Total Secured Notes Payable 8,499 100,992 180,085 116,861 84,474 269,188 760,099 Unsecured Core Debt Senior Unsecured Line of Credit L+1.30%-1.85% 1.61% Jan-2024 - - - 10,000 10,000 Senior Unsecured Term Loan L+1.25%-1.80% 1.56% Jan-2025 - - - - 19,500 19,500 Senior Unsecured Term Loan L+1.25%-1.80% 1.95% - 4.47% (1) Jan-2025 - - - - 185,500 185,500 Total - Unsecured Core Debt - - - 10,000 205,000 - 215,000 Total Notes Payable excluding GAAP Adjustments $8,499 $100,992 $180,085 $126,861 $289,474 $269,188 $975,099 GAAP Adjustments 48 Total Notes Payable $975,147 Debt Maturities & Principal Payments
13 2.4% 3.4% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% Variable-rate Debt Fixed-rate Debt 3.0% Weighted Average DEBT INFORMATION Interest Rates(1)(5) (1) Includes refinances that occurred subsequent to 3/31/21. (2) Excludes debt subject to interest rate swap locks. (3) Includes debt subject to interest rate swap locks. (4) Excludes GAAP adjustments. (5) Subject to LIBOR rate as of 3/31/21. Interest Rate Cap Agreements At or Below 2.00% Effective Date Maturity Date Strike Rate Notional Amount January 2020 February 2022 1.75% $100,000 March 2020 March 2022 1.50% 100,000 July 2020 July 2023 0.50% 100,000 October 2020 November 2023 SOFR 1.84% 84,375 February 2021 February 2023 0.50% 100,000 Total Interest Rate Caps 484,375 Fixed-rate Debt (3)(4) $573,700 Fixed-rate and Hedged Debt $1,058,075 Total Debt (4) $975,099 % of Total Debt (4) 100% Total Debt Composition Weighted Average (1)(5) % of Debt Interest Rate Maturity Variable vs. Fixed-rate Debt (1) Variable-rate Debt (2) 41.2% 2.4% 4.2 Yrs Fixed-rate Debt (3)(4) 58.8% 3.4% 7.2 Yrs Fixed-rate and Hedged Debt (3)(4) 100% Secured vs. Unsecured Debt Unsecured Debt 22.0% 3.0% 3.8 Yrs Secured Debt 78.0% 3.0% 6.6 Yrs Total 3.0% 6.0 Yrs 2.5% 2.8% 2.5% 3.1% 3.4% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2021 2022 2023 2024 2025 Thereafter⁽¹⁾ Debt Maturing Weighted Average Interest Rate $ IN THOUSANDS Debt Maturities(1)
14 (1) See reconciliation on page 34. (2) Excludes non-recurring items. (3) Excludes GAAP adjustments. (4) See page 31 for definition. (5) Includes the unannualized gain of sale on the non-operating parcel of $0.3M. CORE DEBT TO CORE EBITDA $ IN THE THOUSANDS SEE PAGE 34 FOR CALCULATIONS AND RECONCILIATION Three months ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Net income attributable to common stockholders and OP unit holders $3,122 $1,851 $8,651 $11,178 $8,160 Adjusted EBITDA (1)(2)(4) $31,772 $30,534 $29,976 $31,108 $34,170 Other adjustments: Development/Redevelopment (1,060) (880) (2,225) (1,085) (1,133) (Less) Acquisitions/Dispositions completed intra-quarter (447) (961) (155) (1,351) - Core EBITDA (4) $30,266 $28,693 $27,596 $28,672 $33,037 Annualized Core EBITDA $121,316 (5) $114,770 $110,382 $114,689 $132,148 Total debt (3) $975,099 $962,812 $885,359 $956,726 $1,016,293 Adjustments to debt: (Less) Development/Redevelopment (69,039) (67,285) (143,560) (137,508) (127,650) (Less) Net Acquisitions completed intra-quarter (14,473) (84,375) (22,909) - - (Less) Cash & restricted cash (34,588) (50,430) (79,224) (75,111) (52,788) Core Debt (4) $856,999 $760,722 $639,666 $744,107 $835,855 Core Debt/Annualized Core EBITDA 7.1x 6.6x 5.8x 6.5x 6.3x
15 CAPITALIZATION & FINANCIAL RATIOS $ IN THOUSANDS AS OF MARCH 31, 2021 (1) Reflects quarterly Adjusted EBITDA divided by total quarterly interest expense and required principal repayment (2) Reflects quarterly Adjusted EBITDA divided by total quarterly interest expense, required principal repayment, and preferred equity dividends. Unsecured Credit Facility Unsecured Term Loans Mortgages Payable Preferred Equity Common Stock Common Units Equity Debt Debt 45% Equity 55% 10% 35% 8% 35% 12% Debt % of Total Principal Balance Unsecured credit facil ity 1% $10,000 Unsecured term loans 21% 205,000 Mortgages payable 78% 760,099 Total debt $975,099 Preferred Equity Shares Liquidation Value Per Share Total Liquidation Value 6,843 $25.00 $171,085 Common Equity % of Total Shares/Units Stock Price Market Value Common stock (NYSE: AHH) 74% 59,894 $12.54 $751,071 Operating Partnership Units 26% 20,853 $12.54 261,497 Equity market capitalization 80,747 $1,012,568 Total capitalization $2,158,752 Financial Ratios Debt Service Coverage Ratio (1) 3.1x Fixed Charge Coverage Ratio (2) 2.4x Net Debt to Adjusted EBITDA 7.4x Core Debt to Core EBITDA 7.1x Core Debt + Preferred Equity to Core EBITDA 8.5x Debt/Total Capitalization 45% Liquidity Unencumbered Properties Cash on hand $34,588 % of Total Properties 63% Availability under credit facil ity 93,000 % of Annualized Base Rent 46% Availability under construction loans 48,368 $175,956 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock (NYSE: AHHPrA)
16 PROPERTY PORTFOLIO AS OF MARCH 31, 2021 Retail Properties- Stabilized Anchor Tenant(s) Location Town Center Unencumbered ABR Year Built SF (1) Occupancy (2) ABR (3) ABR per Leased SF (3) 249 Central Park Retail Cheesecake Factory, Brooks Brothers Virginia Beach, VA ✓ - 2004 92,400 97.9% $2,388,192 $26.41 Apex Entertainment Apex Entertainment, USI Virginia Beach, VA ✓ 100% 2002 103,335 100.0% 1,482,137 14.34 Broad Creek Shopping Center (6)(9) Food Lion, PetSmart Norfolk, VA 100% 1997/2001 121,504 95.1% 2,097,012 18.16 Broadmoor Plaza Kroger South Bend, IN 100% 1980 115,059 97.5% 1,335,403 11.90 Brooks Crossing Retail Various Small Shops Newport News, VA 100% 2016 18,349 66.3% 170,112 13.98 Columbus Village (6) Barnes & Noble, Shake Shack Virginia Beach, VA ✓ 100% 1980/2013 62,362 91.0% 1,719,906 30.30 Columbus Village II BB&B, Regal Virginia Beach, VA ✓ 100% 1995/1996 92,061 96.7% 720,000 8.09 Commerce Street Retail Yard House Virginia Beach, VA ✓ 100% 2008 19,173 100.0% 894,764 46.67 Courthouse 7-Eleven 7-Eleven Virginia Beach, VA 100% 2011 3,177 100.0% 139,311 43.85 Delray Beach Plaza (6)(9) Whole Foods Delray Beach, FL - 2021 87,207 100.0% 2,973,990 34.10 Dimmock Square Best Buy, Old Navy Colonial Heights, VA 100% 1998 106,166 75.3% 1,468,733 18.38 Fountain Plaza Retail Ruth's Chris, Ann Taylor Virginia Beach, VA ✓ - 2004 35,961 100.0% 998,614 27.77 Greentree Shopping Center Various Small Shops Chesapeake, VA 100% 2014 15,719 92.6% 328,956 22.60 Hanbury Village (6) Harris Teeter Chesapeake, VA 100% 2006/2009 98,638 100.0% 1,977,965 20.05 Harrisonburg Regal Regal Cinemas Harrisonburg, VA 100% 1999 49,000 100.0% 717,850 14.65 Lexington Square Lowes Foods Lexington, SC - 2017 85,440 98.3% 1,822,429 21.69 Market at Mill Creek (6) Lowes Foods Mt. Pleasant, SC - 2018 80,319 97.7% 1,805,603 23.00 Marketplace at Hilltop (6)(9) Total Wine, Panera, Chick-Fil-A Virginia Beach, VA - 2000/2001 116,953 96.4% 2,481,275 22.01 Nexton Square Various Small Shops Summerville, SC - 2020 127,196 87.7% 2,900,471 26.01 North Hampton Market PetSmart, Hobby Lobby Taylors, SC 100% 2004 114,954 97.7% 1,480,950 13.18 North Point Center (6)(11) Harris Teeter, Home Depot, Costco Durham, NC 88% 1998/2009 494,746 92.9% 3,493,917 7.60 Parkway Centre Publix Moultrie, GA 100% 2017 61,200 100.0% 836,604 13.67 Parkway Marketplace Rite Aid Virginia Beach, VA 100% 1998 37,804 87.3% 679,524 20.59 Patterson Place BB&B, PetSmart, DSW Durham, NC 100% 2004 160,942 79.2% 2,076,887 16.30 Perry Hall Marketplace Safeway Perry Hall, MD 100% 2001 74,256 98.0% 1,267,026 17.41 Providence Plaza Cranfil l , Sumner & Hartzog, Chipotle Charlotte, NC 100% 2007/2008 103,118 87.2% 2,564,603 28.53 Red Mill Commons (6) Homegoods, Walgreens Virginia Beach, VA 8% 2000-2005 373,808 94.9% 6,472,009 18.24 Sandbridge Commons (6) Harris Teeter Virginia Beach, VA 100% 2015 76,650 100.0% 1,101,132 14.37 Socastee Commons (11) Bi-Lo Myrtle Beach, SC - 2000/2014 57,273 100.0% 654,575 11.43 Southgate Square Burlington, PetSmart, Michaels, Conn's Colonial Heights, VA - 1991/2016 260,131 96.5% 3,522,526 14.04 South Retail lululemon, free people, CPK Virginia Beach, VA ✓ - 2002 38,515 84.9% 947,404 28.96 South Square Ross, Petco, Office Depot Durham, NC 100% 1977/2005 109,590 100.0% 1,952,968 17.82 Southshore Shops Buffalo Wild Wings Chesterfield, VA 100% 2006 40,307 74.1% 627,165 20.99 Studio 56 Retail Rocket Title Virginia Beach, VA ✓ 100% 2007 11,594 15.2% 54,182 30.75 Tyre Neck Harris Teeter (6)(9) Harris Teeter Portsmouth, VA 100% 2011 48,859 100.0% 533,285 10.91 Wendover Village T.J. Maxx, Petco Greensboro, NC 100% 2004 176,997 98.7% 3,364,489 19.25 Stabilized Retail Total 36 Properties 55% 3,670,763 93.9% $60,051,969 $17.42 Retail Properties- Non-Stabilized Anchor Tenant(s) Location Town Center Unencumbered ABR Year Built SF (1) Occupancy (2) ABR (3) ABR per Leased SF (3) Premier Retail Will iams Sonoma, Pottery Barn Virginia Beach, VA ✓ - 2018 38,715 82.0% $1,022,764 $32.21 Non-Stabilized Retail Total 1 Property
17 PROPERTY PORTFOLIO CONT. AS OF MARCH 31, 2021 (1) The net rentable square footage for each of our retail & 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 retail & office properties is calculated as (a) square footage under executed leases as of March 31, 2021, divided by (b) net rentable square feet, expressed as a percentage. Occupancy for our multifamily properties is calculated as (a) total units/beds occupied as of March 31, 2021, divided by (b) total units/beds available, as of such date expressed as a percentage. (3) For the properties in our retail & office portfolios, annualized base rent, or ABR, is calculated by multiplying (a) monthly base rent (defined as cash base rent, before contractual tenant concessions and abatements, and excluding tenant reimbursements for expenses paid by us) as of March 31, 2021 for in-place leases as of such date by (b) 12, and does not give effect to periodic contractual rent increases or contingent rental revenue (e.g., percentage rent based on tenant sales thresholds). ABR per leased square foot is calculated by dividing (a) ABR by (b) square footage under in-place leases as of March 31, 2021. In the case of triple net or modified gross leases, our calculation of ABR does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses. (4) The Company occupied 55,390 square feet at these two properties at an ABR of $1.8M, or $32.23 per leased square foot, which are reflected in this table. The rent paid by us is eliminated in accordance with GAAP in the consolidated financial statements. (5) Includes ABR pursuant to a rooftop lease. (6) Net rentable square feet at certain of our retail properties includes pad sites leased pursuant to the ground leases. (7) For the properties in our multifamily portfolio, AQR is calculated by multiplying (a) revenue for the quarter ended March 31, 2021 by (b) 4. (8) The AQR for Liberty, Cosmopolitan, Johns Hopkins Village, Hoffler Place, Edison, and 1405 Point excludes approximately $0.3M, $0.8M, $1.3M, $0.1M, $0.3M and $0.4M, respectively, from ground floor retail leases. (9) The Company leases all or a portion of the land underlying this property pursuant to a ground lease. (10) Student Housing property that is leased by bed. Monthly effective rent per occupied unit is calculated by dividing total base rental payments for the month ended March 31, 2021 by the number of occupied beds. Multifamily Properties- Stabilized Location Town Center Unencumbered AQR Year Built Units/Beds Occupancy (2) AQR (7) Monthly Effective Rent per Occupied Unit Rent per Occupied SF 1405 Point (8)(9) Baltimore, MD - 2018 289 95.8% $7,240,992 $2,178 $2.91 Encore Apartments Virginia Beach, VA ✓ - 2014 286 94.4% 4,566,995 1,410 1.97 Edison Apartments (8) Richmond, VA - 2014 174 94.8% 2,631,424 1,329 2.16 Greenside Apartments Charlotte, NC - 2018 225 97.3% 4,118,411 1,567 2.12 Liberty Apartments (8) Newport News, VA - 2013 197 95.5% 2,948,485 1,306 1.78 Premier Apartments Virginia Beach, VA ✓ - 2018 131 93.9% 2,493,210 1,689 2.73 Smith's Landing (9) Blacksburg, VA - 2009 284 98.2% 5,106,966 1,525 1.61 The Cosmopolitan (8) Virginia Beach, VA ✓ - 2006 342 95.6% 7,592,446 1,935 2.00 The Residences at Annapolis Junction Annapolis Junction, MD - 2018 416 95.4% 9,530,331 2,000 2.24 Multifamily Total 9 Properties - 2,344 95.8% 46,229,260 1,716 2.12 Hoffler Place (8)(10) Charleston, SC - 2019 258 95.3% $3,340,596 $1,132 $3.62 Johns Hopkins Village (8)(9)(10) Baltimore, MD - 2016 568 73.9% 6,410,151 1,272 4.29 Summit Place (10) Charleston, SC - 2020 357 95.2% 3,673,112 900 2.52 Student Housing Total 3 Properties - 1,183 85.0% 13,423,859 1,112 3.46 Total / Weighted Average Multifamily Portfolio 3,527 92.2% $59,653,119 $1,529 $2.33 Office Properties- Stabilized Anchor Tenant(s) Location Town Center Unencumbered ABR Year Built SF(1) Occupancy(2) ABR(3) ABR per Leased SF(3) 4525 Main Street Clark Nexsen, Anthropologie, Mythics Virginia Beach, VA ✓ - 2014 234,938 99.4% $6,972,878 $29.86 Armada Hoffler Tower (4)(5) AHH, Troutman Pepper, Will iams Mullen Virginia Beach, VA ✓ 100% 2002 315,929 97.3% 9,105,991 29.62 Brooks Crossing Office Huntington Ingalls Industries Newport News, VA - 2019 98,061 100.0% 1,850,411 18.87 One Columbus (5) BB&T, HBA Virginia Beach, VA ✓ 100% 1984 128,770 97.7% 3,251,365 25.86 One City Center Duke University, WeWork Durham, NC - 2019 151,599 89.3% 4,286,406 31.65 Thames Street Wharf (4) Morgan Stanley, JHU Medical Baltimore, MD - 2010 263,426 99.4% 7,361,888 28.13 Two Columbus Hazen & Sawyer, Fidelity Virginia Beach, VA ✓ 100% 2009 108,459 95.4% 2,603,176 25.15 Stabilized Office Total 7 Properties 42% 1,301,182 97.2% $35,432,115 $28.00 Office Properties- Non-Stabilized Anchor Tenant(s) Location Town Center Unencumbered ABR Year Built SF (1) Occupancy (2) ABR (3) ABR per Leased SF (3) Wills Wharf (9) Canopy by Hilton, EY, Jellyfish Baltimore, MD - 2020 326,997 47.2% $2,726,155 $17.66 Non-Stabilized Office Total 1 Property
18 DEVELOPMENT PIPELINE $ IN THOUSANDS (1) Represents estimates that may change as the development and redevelopment process proceeds. (2) First fully-stabilized quarter. See same store definition on page 32. (3) Majority interest in joint venture with preferred return. Solis Gainesville Gainesville, GA Schedule (1) Projects Property Type Estimated (1) % Leased or LOI Construction Start Initial Occupancy Stabilized Operation (2) Estimated Cost (1) Loan Commitment Cost to Date AHH Ownership % Anchor Tenants Under Development Chronicle Mill Belmont, NC Multifamily 238 units / 14,700 sf - 1Q21 3Q22 2Q24 $54,000 $35,100 $6,000 85% (3) Harrisonburg Multifamily Harrisonburg, VA Multifamily 228 units - TBD TBD TBD 45,000 TBD - 100% Solis Gainesville Gainesville, GA Multifamily 223 units - 3Q20 2Q22 3Q23 48,000 31,000 16,000 95% (3) Southern Post Roswell, GA Mixed-use 138 units / 137,000 sf - TBD TBD TBD 95,000 TBD 11,000 100% Total Projects Under Development $242,000 $66,100 $33,000 Delivered Not Stabilized Premier Retail (Town Center Phase VI) Virginia Beach, VA Retail 39,000 sf 82% 4Q16 3Q18 2Q21 $18,000 $8,000 $16,000 100% Williams-Sonoma, Pottery Barn Wills Wharf Baltimore, MD Office 327,000 sf 63% 3Q18 2Q20 3Q22 120,000 76,000 109,000 100% Canopy by Hilton, EY, Jellyfish Total Projects Delivered Not Stabilized $138,000 $84,000 $125,000 Predevelopment Ten Tryon Charlotte, NC Mixed-use 220,000 sf - TBD TBD TBD $96,000 TBD $9,000 80% (3) Unconsolidated JV's T. Rowe Price Global HQ Baltimore, MD $250,000 $5,000 50% T. Rowe Price Parcel 4 Mixed-Use Baltimore, MD 167,000 - 50% Total Unconsolidated JV's $417,000 $5,000 see page 19 for details see page 19 for details Q1 2021 Capitalized Interest $415 Capitalized Overhead $431
19 T Rowe Price Global HQ Baltimore, MD 1 - Thames Street Wharf 2 - 1405 Point 3 - Wills Wharf 4 - T. Rowe Price Global HQ 5 - Parcel 4 Mixed Use 6 - Exelon Building Owned 100% by AHH JV with Beatty Development Group Built by AHH (not owned) 6 2 1 3 4 5 DEVELOPMENT PIPELINE(1) UNCONSOLIDATED JOINT VENTURES- PREDEVELOPMENT: SUBJECT TO CHANGE $ IN THOUSANDS Estimated Property Type Size Construction Start Initial Occupancy Stabilized Operation Project Cost AHH Ownership % AHH Equity Requirement AHH Investment To Date Hold Period Total Construction Fees T. Rowe Price Global HQ-Baltimore, MD Office 450,000 sf 1Q22 1Q24 2Q24 $250,000 50% $30,000 $5,000 4 Years $4-5M Parcel 4 Mixed-Use-Baltimore, MD Mixed-Use/Garage 314 units / 1,200 spaces 4Q21 4Q23 TBD 167,000 50% 30,000 - 5 Years 4M Total Joint-Ventures $417,000 $60,000 $5,000 $8-9M (1) All items are estimated based on predevelopment assumptions.
20 MEZZANINE INVESTMENTS (1) Represents estimates that may change as the development process proceeds. (2) 100% preferred equity, with economic terms and accounting consistent with a mezzanine loan. Operating agreement executed on 4/1/21. The Interlock Atlanta, GA Solis Apartments at Interlock Atlanta, GA Schedule (1) Outstanding Investments Property Type Estimated Size (1) % Leased or LOI Initial Occupancy Loan Maturity Interest Rate Loan Balance Mezzanine Interest QTD The Interlock Atlanta, GA Mixed-use 300,000 sf 61% 1Q21 4Q24 15% $92,480 $3,075 Solis Apartments at Interlock Atlanta, GA Multifamily 349 units NA 4Q20 4Q22 13% 29,907 938 Solis Nexton (2) Summerville, SC Multifamily 320 units NA 4Q22 4Q26 11% - - Total $122,387 $4,013 Mezzanine Interest Expense (369) Net Mezzanine Interest Income $3,644 AS OF MARCH 31, 2021 $ IN THOUSANDS
21 ACQUISITIONS & DISPOSITIONS $ IN THOUSANDS (1) Contractual purchase price. (2) Includes JV interest in the property. ACQUISITIONS Properties Location Square Feet/Units Purchase Price (1) Cash Cap Rate Purchase Date 2020 Edison Apartments Richmond, VA 174 units $25,700 6.8% 4Q20 2019 757,577 208,783 7.5% Thames Street Wharf Baltimore, MD 263,426 101,000 7.1% 2Q19 Red Mill Commons & Marketplace at Hilltop Virginia Beach, VA 488,865 105,000 7.7% 2Q19 Wendover Village III Greensboro, NC 5,286 2,783 9.2% 1Q19 2018 217,751 52,658 6.7% 2017 35,895 14,300 7.7% 2016 1,515,674 261,530 7.0% 2015 409,386 95,380 7.1% 2014 106,166 19,662 7.3% Total/Weighted Average 3,042,449 / 174 units $678,013 7.2% DISPOSITIONS Properties Location Square Feet/Units Sale Price Cash Cap Rate Disposition Date 2021 67,655 $8,400 7.7% Oakland Marketplace Oakland, TN 64,538 5,500 7.8% 1Q21 Hanbury 7-Eleven Chesapeake, VA 3,117 2,900 5.5% 1Q21 2020 645,600 97,300 7.8% Hanbury Walgreens Chesapeake, VA 14,820 7,300 6.1% 3Q20 Retail Portfolio (7 properties) Mid-Atlantic 630,780 90,000 7.8% 2Q20 2019 Lightfoot Marketplace Williamsburg, VA 124,715 30,275 (2) 5.8% 3Q19 2018 6,047 4,400 5.4% 2017 52,454 17,750 5.9% 2016 481,866 97,350 10.5% 2015 203,200 / 203 units 81,075 6.2% 2014 31,000 8,900 6.3% Total/Weighted Average 1,612,537 / 203 units $345,450 7.2%
22 CONSTRUCTION BUSINESS SUMMARY $ IN THOUSANDS 27th Street Virginia Beach, VA Gross Profit Summary Q1 2021 Trailing 12 Months (Unaudited) Revenue $35,563 $205,441 Expense (34,275) (198,197) Gross Profit $1,288 $7,244 Highlighted Projects Location Total Contract Value Work in Place as of 3/31/2021 Backlog Estimated Date of Completion 27th Street Garage and Apartments Virginia Beach, VA $81,797 $70,375 $11,422 3Q 2021 Holly Springs Apartments Holly Springs, NC 34,730 23,421 11,309 3Q 2021 Sub Total $116,527 $93,796 $22,731 All Other Projects 261,143 245,036 16,107 Total $377,670 $338,832 $38,838
23 SAME STORE NOI BY SEGMENT $ IN THOUSANDS (RECONCILIATION TO GAAP LOCATED IN APPENDIX ON PG. 35) (1) See page 33 for Same Store vs. Non – Same Store Properties. (2) Excludes expenses associated with the Company’s in-house asset management division of $0.7M for the 3 months ended 3/31/2021 & 3/31/2020, respectively. Three months ended 3/31/2021 3/31/2020 $ Change % Change Summary NOI: Office $6,726 $6,671 $55 0.8% Retail 11,898 12,809 (911) -7.1% Multifamily 5,541 6,122 (581) -9.5% $24,165 $25,602 ($1,437) -5.6% NOI, Cash Basis: Office 6,449 $6,235 $214 3.4% Retail 11,538 12,484 (946) -7.6% Multifamily 5,276 6,097 (821) -13.5% $23,263 $24,816 ($1,553) -6.3% Detail by Segment Office (1) Revenue $10,210 $10,192 $18 0.2% Rental Expenses (2) 2,190 2,387 (197) -8.3% Real Estate Taxes 1,294 1,134 160 14.1% Net Operating Income $6,726 $6,671 $55 0.8% Retail (1) Revenue $15,860 $16,810 ($950) -5.7% Rental Expenses (2) 2,175 2,224 (49) -2.2% Real Estate Taxes 1,787 1,777 10 0.6% Net Operating Income $11,898 $12,809 ($911) -7.1% Multifamily (1) Revenue $9,690 $10,017 ($327) -3.3% Rental Expenses (2) 3,029 3,088 (59) -1.9% Real Estate Taxes 1,120 807 313 38.8% Net Operating Income $5,541 $6,122 ($581) -9.5% Same Store Net Operating Income (NOI) $24,165 $25,602 ($1,437) -5.6% GAAP Adjustments (902) (786) (116) $23,263 $24,816 ($1,553) -6.3% Same store portfolio NOI, cash basis excluding deferred rent collected of ($0.4M) for three month ended 3/31/21
24 TOP 10 TENANTS BY ABR(1) $ IN THOUSANDS AS OF MARCH 31, 2021 (1) Excludes leases from the development and redevelopment properties that have been delivered, but not yet stabilized. (2) Excludes 9.3K SF Morgan Stanley lease at Armada Hoffler Tower expiring in 2023. Inclusive of both leases, Morgan Stanley contributes $6.0M of ABR. Office Portfolio (1) Tenant Number of Leases Lease Expiration Annualized Base Rent % of Office Portfolio Annualized Base Rent % of Total Portfolio Annualized Base Rent Morgan Stanley (2) 1 2027 $ 5,703 16.1% 3.8% Clark Nexsen 1 2029 2,692 7.6% 1.8% WeWork 1 2034 2,065 5.8% 1.4% Duke University 1 2029 1,618 4.6% 1.1% Huntington Ingalls 1 2029 1,544 4.4% 1.0% Mythics 1 2030 1,235 3.5% 0.8% Johns Hopkins Medicine 1 2023 1,149 3.2% 0.8% Pender & Coward 1 2030 950 2.7% 0.6% Kimley-Horn 1 2027 912 2.6% 0.6% Troutman Pepper Hamilton Sanders 1 2025 907 2.6% 0.6% Top 10 Total $ 18,775 53.1% 12.5% Retail Portfolio (1) Tenant Number of Leases Lease Expiration Annualized Base Rent % of Retail Portfolio Annualized Base Rent % of Total Portfolio Annualized Base Rent Harris Teeter/Kroger 5 2023 - 2035 $ 3,289 5.8% 2.2% Lowes Foods 2 2037 ; 2039 1,976 3.5% 1.3% PetSmart 5 2022 - 2025 1,461 2.6% 1.0% Amazon/Whole Foods 1 2040 1,144 2.0% 0.8% Apex Entertainment 1 2035 1,050 1.8% 0.7% Bed, Bath, & Beyond 2 2022 - 2025 1,047 1.8% 0.7% Petco 4 2022 - 2030 913 1.6% 0.6% Regal Cinemas 2 2021 - 2024 838 1.5% 0.6% Total Wine & More 2 2024 - 2027 765 1.3% 0.5% Ross Dress for Less 2 2025 - 2027 762 1.3% 0.5% Top 10 Total $ 13,245 23.2% 8.9%
25 LEASE SUMMARY OFFICE RETAIL (1) Excludes 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 Wtd Average Lease Term (yrs) TI & LC TI & LC per SF Q1 2021 1 4,152 1 4,152 $23.95 $23.56 1.6% $24.00 $25.46 -5.7% 2.00 $27,960 $6.73 Q4 2020 2 14,745 1 3,024 24.81 22.66 9.5% 24.00 25.35 -5.3% 4.44 206,383 14.00 Q3 2020 - - 1 13,316 - - 0.0% - - 0.0% - - - Q2 2020 3 11,529 1 1,485 33.09 30.47 8.6% 33.72 32.20 4.7% 5.00 70,249 6.09 Office Renewal Total 6 30,426 4 21,977 $27.83 $25.74 8.1% $27.68 $27.96 -1.0% 4.32 $304,591 $10.01 New Lease Summary (1) Quarter Number of Leases Signed Net Rentable SF Signed Cash Contractua l Rent per SF Wtd Average Lease Term (yrs) TI & LC TI & LC per SF Q1 2021 1 1,455 $23.50 2.08 $4,871 $3.35 ` Q4 2020 2 4,032 25.47 6.83 238,691 59.20 Q3 2020 2 8,984 24.98 6.59 525,540 58.50 Q2 2020 - - - - - - New Office Total 5 14,471 $24.97 6.20 $769,102 $53.15 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 Q1 2021 8 21,317 9 22,717 $23.78 $22.22 7.0% $23.62 $23.16 2.0% 4.46 $117,685 $5.52 Q4 2020 20 119,351 14 109,544 15.16 15.87 -4.5% 15.00 16.07 -6.7% 7.40 832,241 6.97 Q3 2020 16 138,355 7 32,336 16.92 16.33 3.6% 17.40 16.55 5.1% 4.92 98,170 0.71 Q2 2020 14 42,605 8 19,153 22.15 20.57 7.7% 22.10 20.95 5.5% 4.39 41,889 0.98 Retail Renewal Total 58 321,628 38 183,750 $17.41 $17.11 1.8% $17.55 $17.40 0.9% 5.74 $1,089,986 $3.39 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 Q1 2021 7 27,260 $19.10 8.38 $612,116 $22.45 Q4 2020 10 71,888 16.13 8.72 1,505,862 20.95 Q3 2020 4 8,425 18.73 5.03 87,499 10.39 Q2 2020 1 1,440 18.00 5.33 5,505 3.82 New Retail Total 22 109,013 $17.09 8.30 $2,210,982 $20.28
26 OFFICE LEASE EXPIRATIONS AS OF MARCH 31, 2021 (1) Excludes leases from properties in development and delivered, but not yet stabilized. Year Number of Leases Expiring Square Footage of Leases Expiring (1) % Portfolio Net Rentable Square Feet Annualized Base Rent (1) % of Portfolio Annualized Base Rent Annualized Base Rent per Leased Square Foot Available - 35,843 2.8% -$ - -$ M-T-M 4 1,623 0.1% 45,279 0.1% 27.90 2021 8 17,427 1.3% 529,195 1.5% 30.37 2022 10 47,077 3.6% 1,310,653 3.7% 27.84 2023 15 105,702 8.1% 2,843,097 8.0% 26.90 2024 11 140,377 10.8% 3,502,585 9.9% 24.95 2025 18 142,117 10.9% 4,275,718 12.1% 30.09 2026 10 60,853 4.7% 1,610,568 4.5% 26.47 2027 6 256,477 19.7% 7,524,531 21.2% 29.34 2028 9 79,761 6.1% 2,282,314 6.4% 28.61 2029 7 242,709 18.7% 6,306,058 17.8% 25.98 2030 6 107,801 8.3% 3,099,203 8.7% 28.75 2031 1 1,317 0.1% 37,535 0.1% 28.50 Thereafter 1 62,098 4.8% 2,065,379 6.0% 33.26 Total / Weighted Average 106 1,301,182 100.0% 35,432,115$ 100.0% 28.00$ Upcoming Expirations Over 20,000 Square Feet Through Dec. 2023 Tenant Property Expiration Month Square Footage Expiring (1) Status Day & Zimmerman Armada Hoffler Tower Apr-2022 23,267 - Johns Hopkins Medicine Thames Street Wharf Apr-2023 46,233 -
27 RETAIL LEASE EXPIRATIONS AS OF MARCH 31, 2021 (1) Excludes leases from properties in development and delivered, but not yet stabilized. Year Number of Leases Expiring Square Footage of Leases Expiring (1) % Portfolio Net Rentable Square Feet Annualized Base Rent (1) % of Portfolio Annualized Base Rent Annualized Base Rent per Leased Square Foot Available - 230,223 6.2% -$ - -$ M-T-M 1 2,400 0.1% 54,816 0.1% 22.84 2021 41 211,334 5.7% 2,755,176 4.5% 13.04 2022 68 320,529 8.6% 5,311,927 8.7% 16.57 2023 65 429,406 11.6% 6,929,189 11.3% 16.14 2024 80 390,698 10.5% 7,571,794 12.4% 19.38 2025 89 611,780 16.5% 8,696,497 14.2% 14.22 2026 57 309,282 8.3% 6,159,699 10.1% 19.92 2027 27 161,127 4.3% 3,320,859 5.4% 20.61 2028 19 45,540 1.2% 1,225,379 2.0% 26.91 2029 24 104,871 2.8% 2,205,464 3.6% 21.03 2030 36 224,861 6.1% 4,972,196 8.1% 22.11 2031 21 183,859 5.0% 3,597,129 5.9% 19.56 Thereafter 21 483,568 13.1% 8,274,608 13.7% 17.11 Total / Weighted Average 549 3,709,478 100.0% 61,074,733$ 100.0% 17.55$ Upcoming Expirations Over 20,000 Square Feet Through 2023 Tenant Property Expiration Square Footage Expiring (1) Status BI-LO Socastee Commons Jun-2021 46,673 Terminating0 0 Jan-1900 - Michaels Marketplace at Hilltop Nov-2021 23,753 In Negotiation0 0 Jan-1900 - Regal Cinemas Columbus Village II Dec-2021 51,545 In Negotiation0 0 Jan-1900 - PetSmart Broad Creek Shopping Center Jan-2022 20,114 -0 0 Jan-1900 - PetSmart Southgate Square Jan-2022 25,950 -0 0 Jan-1900 - Bed Bath and Beyond Columbus Village II Jan-2022 37,500 Renewed through 20270 0 Jan-1900 - TJ Maxx Red Mill Commons Mar-2022 30,000 -0 0 Jan-1900 - Michaels Red Mill Commons Jul-2022 23,753 -0 0 Jan-1900 - Food Lion Broad Creek Shopping Center Aug-2022 33,000 -0 0 Jan-1900 - Home Depot North Point Center Jan-2023 120,000 -0 0 Jan-1900 - Golf Galaxy Wendover Village Jun-2023 24,946 -0 0 Jan-1900 - Harris Teeter North Point Center Aug-2023 57,590 -0 0 Jan-1900 - TJ Maxx Wendover Village Oct-2023 24,903 -
28 COVID-19 EFFECT AS OF MARCH 31, 2021 $ IN THOUSANDS TOTAL DEFERRALS(1) Deferrals OutstandingDeferrals Collected (1) Excludes 2 Regal Cinemas leases. Period Deferrals Due Deferrals Collected Repayment Outstanding Total $2,110 $1,950 92% $160 8% 92% 8% Deferrals Outstanding ⁽¹⁾ Repayment Period 2021 2022 $1,500 $1,050 $450 $5,250 $1,500 $1,950 $250 $1,550 Total Deferral Agreements Collected Written Off Abated Outstanding Balance⁽¹⁾
29 APPENDIX DEFINITIONS & RECONCILIATIONS Town Center Virginia Beach, VA
30 DEFINIT IONS 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 depreciation and amortization related to real estate, gains or losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. 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. NET OPERATING INCOME: We calculate Net Operating Income (“NOI”) as property revenues (base rent, expense reimbursements, termination fees 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. 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 of intangible assets and liabilities, mark- to-market adjustments on interest rate derivatives, provision for unrealized credit losses, amortization of right-of-use assets attributable to finance leases, severance related costs, 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.
31 DEFINIT IONS 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, proceeds from the sale of a purchase option (in excess of amounts recognized in net income), straight-line rents, cash ground rent payments for finance leases, 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. 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, impairment of real estate assets, debt extinguishment losses, non-cash stock compensation and mark-to-market adjustments on interest rate derivates, other one time adjustments including non-recurring bad debt and termination fees, and including cash ground rent payments for finance leases. 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 Adjusted EBITDA, excluding certain items, including, but not limited to, the impact of redevelopment and 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 reoccurring 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.
32 DEFINIT IONS SAME STORE PORTFOLIO: We define same store properties as those that we owned and operated and that were stabilized for the entirety of both periods compared. We generally consider a property to be stabilized upon the earlier of: (i) the quarter after the property reaches 80% occupancy or (ii) the thirteenth quarter after the property receives its certificate of occupancy. Additionally, any property that is fully or partially taken out of service for the purpose of redevelopment is no longer considered stabilized until the redevelopment activities are complete, the asset is placed back into service, and the stabilization criteria above are again met. A property may also be fully or partially taken out of service as a result of a disposition, depending on the significance of the portion of the property disposed. Finally, any property classified as Held for Sale is taken out of service for the purpose computing same store operating results. The following table shows the properties included in the same store and non-same store portfolio for the comparative periods presented.
33 S A M E S TO R E V S . N O N - S A M E S TO R E Same Store Non-Same Store Same Store Non-Same Store Retail Properties Retail Properties (Continued) 249 Central Park Retail X South Retail X Apex Entertainment X South Square X Broad Creek Shopping Center X Southgate Square X Broadmoor Plaza X Southshore Shops X Brooks Crossing (Retail) X Studio 56 Retail X Columbus Village X Tyre Neck Harris Teeter X Columbus Village II X Wendover Village X Commerce Street Retail X Office Properties Courthouse 7-Eleven X 4525 Main Street X Delray Beach Plaza X Armada Hoffler Tower X Dimmock Square X Brooks Crossing (Office) X Fountain Plaza Retail X One City Center X Greentree Shopping Center X One Columbus X Hanbury Village X Thames Street Wharf X Harrisonburg Regal X Two Columbus X Lexington Square X Wills Wharf X Market at Mill Creek X Multifamily Properties Marketplace at Hilltop X 1405 Point X Nexton Square X Edison Apartments X North Hampton Market X Encore Apartments X North Point Center X Greenside Apartments X Parkway Centre X Hoffler Place X Parkway Marketplace X Johns Hopkins Village X Patterson Place X Liberty Apartments X Perry Hall Marketplace X Premier Apartments X Premier Retail X Smith’s Landing X Providence Plaza X Summit Place X Red Mill Commons X The Cosmopolitan X Sandbridge Commons X The Residences at Annapolis Junction X Socastee Commons X Three Months Ended 3/31/2021 to 2020 Three Months Ended 3/31/2021 to 2020
34 R E C O N C I L I AT I O N O F A D J U S T E D E B I T D A , C O R E E B I T D A , A N D C O R E D E B T ( 1 ) $ IN THOUSANDS (1) See definitions on page 31. (2) Adjusted for the depreciation and interest expense attributable to noncontrolling interests in consolidated investments. (3) Excludes non-recurring items. (4) Bad debt resulting from Company’s decision to terminate two defaulted Regal Cinemas leases. (5) Adjusts bad debt to an annualized $3 million – Management’s Estimates. (6) Excludes GAAP Adjustments. (7) Includes the unannualized gain of sale on the non-operating parcel of $0.3M. Three months ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Net income attributable to common stockholders and OP unit holders $3,122 $1,851 $8,651 $11,178 $8,160 Excluding: Depreciation and amortization 18,066 17,678 (2) 14,131 (2) 13,644 (2) 14,092 (2) Gain on real estate dispositions (3,717) - (3,612) (2,776) - Impairment of real estate assets 3,039 - - - - Income tax provision (benefit) (19) (63) (28) 65 (257) Interest expense 7,613 7,815 7,249 6,904 7,805 Change in fair value of derivatives and other (393) (294) (318) 6 1,736 Preferred dividends 2,887 2,887 2,220 1,175 1,067 GAAP adjustments related to finance leases 212 160 160 158 160 Non-Recurring Bad Debt - - 1,100 (4) 450 (5) - Unrealized credit loss provision (release) (55) 29 (33) (117) 377 Non-cash stock compensation 1,017 471 456 421 1,030 Adjusted EBITDA (3) $31,772 $30,534 $29,976 $31,108 $34,170 Development/Redevelopment: Premier Retail (221) (202) (223) (207) (210) Wills Wharf (839) (678) (633) - - The Cosmopolitan Apartments - - (981) (878) (923) Summit Place - - (388) - - Total Development (1,060) (880) (2,225) (1,085) (1,133) Dispositions completed intra-quarter (111) - (80) (1,351) - Acquisitions completed intra-quarter (336) (961) (75) - - Core EBITDA $30,266 $28,693 $27,596 $28,672 $33,037 Annualized Core EBITDA $121,316 (7) $114,770 $110,382 $114,689 $132,148 Total debt (6) $975,099 $962,812 $885,359 $956,726 $1,016,293 (Less) Development/Redevelopment Premier Retail (8,208) (8,241) (8,250) (8,250) (8,250) Wills Wharf (60,831) (59,044) (57,585) (53,660) (45,759) The Cosmopolitan Apartments - - (43,110) (43,309) (43,506) Summit Place - - (34,615) (32,289) (30,135) Total Development (69,039) (67,285) (143,560) (137,508) (127,650) (Less) Net Acquisitions completed intra-quarter (14,473) (84,375) (22,909) - - (Less) Cash & restricted cash (34,588) (50,430) (79,224) (75,111) (52,788) Core Debt $856,999 $760,722 $639,666 $744,107 $835,855
35 RECONCILIATION TO PROPERTY PORTFOLIO NOI $ IN THOUSANDS (1) See page 33 for the Same Store vs. Non-Same Store properties. (2) Includes expenses associated with the Company’s in-house asset management division. Three months ended 3/31 2021 2020 Office Same Store (1) Rental revenues $10,210 $10,192 Property expenses 3,484 3,521 NOI 6,726 6,671 Non-Same Store NOI (2) 676 (171) Segment NOI $7,402 $6,500 Retail Same Store (1) Rental revenues $15,860 $16,810 Property expenses 3,962 4,001 NOI 11,898 12,809 Non-Same Store NOI (2) 1,494 2,416 Segment NOI $13,392 $15,225 Multifamily Same Store (1) Rental revenues $9,690 $10,017 Property expenses 4,149 3,895 NOI 5,541 6,122 Non-Same Store NOI (2) 3,268 734 Segment NOI $8,809 $6,856 Total Property Portfolio NOI $29,603 $28,581
36 RECONCILIATION TO GAAP NET INCOME $ IN THOUSANDS Office Retail Multifamily Total Rental Properties General Contracting & Real Estate Services Total Segment revenues 11,635$ 18,255$ 15,851$ 45,741$ 35,563$ 81,304$ Segment expenses 4,233 4,863 7,042 16,138 34,275 50,413 Net operating income 7,402$ 13,392$ 8,809$ 29,603$ 1,288$ 30,891$ Depreciation and amortization (18,066) General and administrative expenses (4,021) Acquisition, development and other pursuit costs (71) Impairment charges (3,039) Gain on real estate dispositions 3,717 Interest income 4,116 Interest expense on indebtedness (7,613) Interest expense on finance leases (362) Unrealized credit loss release 55 Amortization of right-of-use assets - finance leases (189) Change in fair value of derivatives and other 393 Other income 179 Income tax benefit 19 Net income 6,009$ Preferred stock dividends (2,887) Net income attributable to AHH and OP unit holders 3,122$ Three months ended 3/31/2021
