Armada Hoffler Reports Fourth Quarter 2024 Results

Core Insights - Armada Hoffler Properties, Inc. reported a GAAP net income of $26.1 million, or$0.26 per diluted share, for the fourth quarter of 2024, a significant recovery from a net loss of $23.9 million, or$0.27 per diluted share, in the same quarter of 2023 [3][4][30] - The company achieved a normalized FFO of $27.8 million, or$0.27 per diluted share, for the fourth quarter, slightly down from $27.9 million, or$0.31 per diluted share, in the prior year [5][30] - For the full year 2024, net income attributable to common stockholders was $30.9 million compared to a net loss of$4.5 million in 2023, while FFO increased to $99.8 million from$90.7 million [6][30] Financial Performance - The company reported a total revenue of $142.6 million for the fourth quarter, compared to$191.0 million in the same period of 2023, with rental revenues increasing to $62.9 million from$59.8 million [28] - The office same-store NOI grew by 12.3% on a GAAP basis compared to the fourth quarter of 2023, indicating strong performance in the office segment [3][7] - Positive renewal spreads were noted across all segments, with retail at 11.1% (GAAP), office at 18.7% (GAAP), and multifamily at 4.7% (GAAP) [3][7] Leasing and Occupancy - The company executed 21 lease renewals and 23 new leases during the fourth quarter, totaling approximately 315,000 net rentable square feet [3][7] - As of December 31, 2024, the weighted average stabilized portfolio occupancy was 96.0%, with retail occupancy at 95.3%, office at 97.2%, and multifamily at 95.3% [3][7] Guidance and Outlook - Armada Hoffler introduced its 2025 full-year normalized FFO guidance range of $1.00 to$1.10 per diluted share [10][11] - The company anticipates portfolio NOI for 2025 to be between $171.2 million and$175.8 million, with construction segment gross profit expected to range from $6.8 million to$8.6 million [11][10] Management and Strategic Direction - The company is focused on improving income streams and balance sheet quality, with a strategy aimed at sustainable growth while maintaining financial strength [3][4] - A succession plan was executed with Shawn Tibbetts appointed as CEO effective January 1, 2025, following Louis S. Haddad's resignation [8]