Armada Hoffler Properties : 2020 Q3 Supplemental Financial Package

TABLE OF CONTENTS

1. Forward-LookingStatements
2. Corporate Profile
3. Highlights
4. 2020 Outlook & Assumptions
5. Summary Information
6. Net Asset Value Component Data
7. Summary Balance Sheet
8. Summary Income Statement
9. FFO, Normalized FFO & Adjusted FFO
10. Outstanding Debt
11. Debt Information
12. Core Debt to Core EBITDA
13. Capitalization & Financial Ratios
14. Property Portfolio

1. Development & Redevelopment Pipeline
2. Mezzanine Investments
3. Acquisitions & Dispositions
4. Construction Business Summary
5. Same Store NOI by Segment
6. Top 10 Tenants by Annualized Base Rent
7. Lease Summary
8. Office Lease Expirations
9. Retail Lease Expirations
10. COVID-19Update

1. Appendix - Definitions & Reconciliations

1. Same Store vs Non-Same Store Properties
2. Reconciliation to Core EBITDA
3. Reconciliation to Property Portfolio NOI

36	Reconciliation to GAAP Net Income	1405 Point
		Baltimore, MD

F O R W A R D - L O O K I N G S TAT E M E N T S

This Supplemental Financial Package should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated November 5, 2020, which has been furnished as Exhibit 99.1 to our Form 8-K filed on November 5, 2020. 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, 2019 and the other documents filed by the Company with the Securities and Exchange Commission from time to time, including the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020. 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-

1. 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.

C O R P O R AT E P RO F I L E

4

Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated,self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high-quality,institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. Founded in 1979 by Daniel A. Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information, visit ArmadaHoffler.com.

BOARD OF DIRECTORS	CORPORATE OFFICERS
Daniel A. Hoffler, Executive Chairman of the Board	Louis S. Haddad, President and Chief Executive Officer
Louis S. Haddad, Vice Chairman of the Board	Michael P. O'Hara, Chief Financial Officer
James C. Cherry, Lead Independent Director	Shawn J. Tibbetts, Chief Operating Officer
George F. Allen, Independent Director	Eric E. Apperson, President of Construction
James A. Carroll, Independent Director	Shelly R. Hampton, President of Asset Management
Eva S. Hardy, Independent Director
A. Russell Kirk, Director
Dorothy S. McAuliffe, Independent Director
John W. Snow, Independent Director

ANALYST COVERAGE

Bank of America Merrill Lynch		Janney, Montgomery, & Scott LLC		Robert W. Baird & Co.
James Feldman		Robert Stevenson		David Rodgers
[phone]		[phone]		[phone]
[e-mail]		[e-mail]		[e-mail]
D. A. Davidson & Co.		Raymond James & Associates
	Bill Crow
Barry Oxford
	[phone]
[phone]
	[e-mail]
[e-mail]

H I G H L I G H T S

5

• Net income attributable to common stockholders and OP Unit holders of $8.7 million, or $0.11 per diluted share, compared to $9.9 million, or $0.13 per diluted share, for the three months ended September 30, 2019.
• Funds from operations attributable to common stockholders and OP Unit holders ("FFO") of $19.2 million, or $0.24 per diluted share, compared to $21.7 million, or $0.29 per diluted share, for the three months ended September 30, 2019. See "Non-GAAP Financial Measures."
• Normalized funds from operations attributable to common stockholders and OP Unit holders ("Normalized FFO") of $19.0 million, or $0.24 per diluted share, compared to $22.5 million, or $0.30 per diluted share, for the three months ended September 30, 2019.
• Recaptured two prime redevelopment sites - 3 acres in the Town Center of Virginia Beach and nearly 10 acres adjacent to James Madison University in Harrisonburg, Virginia - after terminating leases with Regal Cinemas upon tenant default. Excluding one-time charges of $1.1 million associated with these early terminations, Normalized FFO for the third quarter would have been $0.26 per diluted share.
• Updated 2020 full-year Normalized FFO guidance to $1.10 to $1.12 per diluted share from $1.09 to $1.13 per diluted share.
• Core operating property portfolio occupancy at 95.4% as of September 30, 2020 compared to 93.6% as of June 30, 2020. The Company's September 30, 2020 occupancy includes office at 96.7%, retail at 94.2%, and multifamily at 95.9%.
• Positive releasing spreads on lease renewals during the third quarter of 3.6% on a GAAP basis and 5.1% on a cash basis.
• Collected 96% of portfolio rents for the third quarter, including 100% of office tenant rents, 98% of multifamily tenant rents, and 93% of retail tenant rents. Refer to pages 27-28 of the Supplemental Financial Package for further details.
• Collected 96% of October portfolio rents, including 100% of office tenant rents, 97% of multifamily tenant rents, and 94% of retail tenant rents.
• Announced a new development project, Solis Gainesville, a $52 million 223-unit multifamily project in downtown Gainesville, Georgia.
• Ended the third quarter with $122.7 million of third-party construction backlog.
• Acquired Nexton Square, a 118,000 square foot open air lifestyle center in Summerville, South Carolina in an off-market transaction.
• Acquired partner's 20% ownership interest of the Southern Post project in Roswell, Georgia resulting in 100% ownership of the partnership.
• Raised $86.3 million of net proceeds before offering expenses through an underwritten public offering of 3,600,000 shares of 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock at a public offering price of $24.75 per share.
• Completed the acquisition of the Edison Apartments in downtown Richmond, Virginia in an off-market, OP Unit transaction.
• Completed the off-market acquisition of The Residences at Annapolis Junction, a 416-unit, Class A, LEED Gold certified mid-rise apartment community in Howard County, Maryland.

2020 OUTLOOK & ASSUMPTIONS	6
	OUTLOOK	LOW	HIGH
	Total NOI	$108.2M	$109.6M
	Construction Segment Gross Profit	$7.4M	$7.8M
	G&A Expenses	$12.7M	$13.3M
	Mezzanine Interest Income	$19.8M	$20.2M
	Interest Expense	$30.0M	$30.5M
	Normalized FFO per diluted share	$1.10	$1.12

G U I D A N C E A S S U M P T I O N S

• Disposition of two unencumbered assets for $8M in cash proceeds at the end of the fourth quarter
• Acquisition of Annapolis Junction and Edison Apartments in the fourth quarter
• An additional $0.5M of potential bad debt write offs for the remainder of 2020
• Interest expense is calculated based on Forward LIBOR Curve, which forecasts rates ending the year at 0.16%

SUMMARY INFORMATION			7
$ IN THOUSANDS, EXCEPT PER SHARE DATE
				Three months ended
	9/30/2020	6/30/2020		3/31/2020	12/31/2019	9/30/2019
OPERATIONAL METRICS
Net income attributable to common stockholders and OP unit holders	$8,651	$11,178		$8,160	$7,215	$9,869
Net income attributable to common stockholders and OP unit holders per diluted share	$0.11	$0.14		$0.11	$0.09	$0.13
Rental properties Net Operating Income (NOI)	24,653	27,373		28,581	27,811	28,167
General contracting and real estate services gross profit	2,108	2,056		1,718	1,058	1,192
Adjusted EBITDA(1)	27,756	29,933		33,103	30,843	31,150
Funds From Operations (FFO) attributable to common stockholders and OP unit holders	19,170	22,046		22,252	22,500	21,706
FFO per diluted share attributable to common stockholders and OP unit holders	$0.24	$0.28		$0.29	$0.29	$0.29
Normalized FFO attributable to common stockholders and OP unit holders	19,039	22,583		24,697	22,896	22,474
Normalized FFO per diluted share attributable to common stockholders and OP unit holders	$0.24	$0.29		$0.32	$0.30	$0.30
Annualized dividend yield	4.75%	NA		8.22%	4.58%	4.64%
CAPITALIZATION
Common shares outstanding	57,934	57,010		56,492	56,278	54,875
Operating Partnership units outstanding	20,523	21,273		21,273	21,273	21,167
Common shares and OP units outstanding	78,457	78,283		77,765	77,551	76,042
Market price per common share	$9.26	$9.95		$10.70	$18.35	$18.09
Common equity capitalization(2)	$726,512	$778,916		$832,085	$1,423,061	$1,375,600
Preferred equity capitalization	171,075	63,350		63,250	63,250	63,250
Total equity capitalization	$897,587	$842,266		$895,335	$1,486,311	$1,438,850
Total debt(3)	885,359	956,726		1,016,293	960,819	951,891
Total capitalization	1,782,946	1,798,992		1,911,628	2,447,130	2,390,741
Less: cash	(79,224)	(75,111)		(52,788)	(43,579)	(47,606)
Total enterprise value	$1,703,722	$1,723,881		$1,858,840	$2,403,551	$2,343,135
BALANCE SHEET METRICS
Core debt / enterprise value	37.5%	43.2%		45.0%	33.6%	33.4%
Core debt + preferred equity / enterprise value	47.6%	46.8%		48.4%	36.2%	36.1%
Fixed charge coverage ratio	2.3x	2.9x		2.8x	2.5x	2.7x
Core debt / Annualized core EBITDA	6.3x	6.8x		6.5x	6.8x	6.6x
Core debt + preferred equity / Annualized core EBITDA	8.0x	7.3x		7.0x	7.3x	7.2x
CORE PORTFOLIO OCCUPANCY
Office(4)	96.7%	97.0%		96.6%	96.6%	96.6%
Retail(4)	94.2% (6)	95.1%		96.1%	96.9%	96.8%
Multifamily(5)	95.9%	87.9%	(7)	93.7%	95.6%	95.8%
Weighted Average(8)	95.4%	93.6%		95.6%	96.5%	96.5%

1. See definition on page 31.
2. Includes common shares and OP units.
3. Excludes GAAP adjustments.
4. Office and retail occupancy based on leased square feet as a % of respective total.
5. Multifamily and student housing occupancy based on occupied units/beds as a % of total.
6. Regal leases which were terminated by the Company subsequent to the quarter are included as occupied in the calculation.
7. Includes impact of seasonality related to student housing.
8. Total occupancy weighted by annualized base rent.

NET ASSET VALUE COMPONENT DATA 8

$ IN THOUSANDS

Stabilized Portfolio NOI (Cash)(1)
			Three months ended 9/30/2020
	Office(2)		Retail		Multifamily			Total
Stable Portfolio
Portfolio NOI	$6,415	$11,586	$6,145		$24,146
Unstabilized Properties NOI	202	(229)	(392)		(419)
Signed Leases Not Yet Occupied or In Free Rent Period	126	981	154		1,261
Net Deferrals and Recoveries	(27)		(124)		22			(129)
Stable Portfolio NOI	$6,716	$12,214	$5,929		$24,859
Intra-Quarter Transactions
Net Acquisitons	-	482	-		482
Net Dispositions	-		(80)		-			(80)
Total	$0		$402		$0			$402
Annualized	$26,864		$50,464		$23,716			$101,044

Third-Party General Contracting and Real Estate Services

	Trailing 12 Months
General Contracting Gross Profit	$6,940
Non-Property Assets(3)
	As of 9/30/2020
Cash and Retricted Cash	$79,224
Accounts Receivable	26,465
Notes Receivable, Including Mezzanine Investments (4)	168,734
Construction receivables, including retentions (4)	43,507
Acquired lease intangible assets, net	57,958
Other Assets	44,608
Total Non-Property Assets	$420,496

Liabilities(3)

As of 9/30/2020

Non-Stabilized Portfolio						Mortgages and Notes Payable(4)	$885,359
					As of 9/30/2020		Accounts Payable and Accrued Liabilities	20,667
Development Cost - See Page 18		$210,000		Construction Payables, Including Retentions	55,825
Cosmopolitan Redevelopment Cost - See Page 18			13,000		Other Liabilities	64,270
Total Non-Stabilized Portfolio		$223,000		Total Liabilities	$1,026,121
Management's Estimate of Land Value and Vacancy Opportunities						Preferred Equity
		Size	Estimated Land Value(5)			Liquidation Value
Columbus Village II Redevelopment Opportunity							Series A Cumulative Redeemable Perpetual Preferred Stock	$171,075
Multifamily	250 units	$25,000-35,000/unit
Retail	30,000 sf			$20-25/sf	Common Equity
Harrisonburg Regal Redevelopment Opportunity								As of 9/30/2020
Multifamily	190 units	$20,000-30,000/unit	Total common shares outstanding	57,934
Retail	50,000 sf			$12-18/sf	Total OP units outstanding		20,523
							Total Common Shares & OP Units Outstanding		78,457
		Size			Rent PSF
Other Vacant Retail with Active Prospects	90,000 sf			$22-26/sf

1. NOI from non-stabilized portfolio and development pipeline excluded from stabilized portfolio.
2. Includes leases for spaces occupied by Armada Hoffler which are eliminated for GAAP purposes.
3. Excludes lease right of use assets and lease liabilities.
4. Excludes GAAP adjustments.
5. Management's assessment of comparable multifamily assets in the applicable market.

SUMMARY BALANCE SHEET	9
$ IN THOUSANDS
		As of
	9/30/2020	12/31/2019
Assets	(Unaudited)
Real estate investments:
Income producing property	$1,531,910	$1,460,723
Held for development	13,607	5,000
Construction in progress	60,810	140,601
Accumulated depreciation	(241,859)		(224,738)
Net real estate investments	1,364,468	1,381,586
Real estate investments held for sale	-	1,460
Cash and cash equivalents	73,579	39,232
Restricted cash	5,645	4,347
Accounts receivable, net	26,465	23,470
Notes receivable, net	168,716	159,371
Construction receivables, including retentions, net	43,324	36,361
Construction contract costs and estimated earnings in excess of billings, net	215	249
Operating lease right-of-use assets, net	32,818	33,088
Finance lease right-of-use assets, net	23,691	24,130
Acquired lease intangible assets, net	57,958	68,702
Other assets	44,393		32,901
Total Assets	$1,841,272	$1,804,897
Liabilities and Equity
Indebtedness, net	$886,509	$950,537
Accounts payable and accrued liabilities	20,667	17,803
Construction payables, including retentions	55,825	53,382
Billings in excess of costs and estimated earnings	7,085	5,306
Operating lease liabilities	41,589	41,474
Finance lease liabilities	17,941	17,903
Other liabilities	60,219		63,045
Total Liabilities	1,089,835	1,149,450
Total Equity	751,437	655,447
Total Liabilities and Equity	$1,841,272	$1,804,897

SUMMARY INCOME STATEMENT		10
IN THOUSANDS, EXCEPT PER SHARE DATA
	Three months ended	Nine months ended
	9/30/2020		9/30/2019				9/30/2020		9/30/2019
Revenues			(Unaudited)
Rental revenues	$39,636	$42,220				$121,840	$109,507
General contracting and real estate services revenues	58,617		27,638				163,283		66,118
Total Revenues	98,253	69,858				285,123	175,625
Expenses
Rental expenses	10,223	9,873				27,907	24,513
Real estate taxes	4,760	4,180				13,326	10,759
General contracting and real estate services expenses	56,509	26,446				157,401	62,855
Depreciation and amortization	14,176	15,465				42,232	38,874
Amortization of right-of-use assets - finance leases	147	145				440	230
General and administrative expenses	2,601	2,977				9,382	9,329
Acquisition, development and other pursuit costs	26	93				555	550
Impairment charges	47		-				205		-
Total Expenses	88,489		59,179				251,448		147,110
Gain on real estate dispositions	3,612		4,699				6,388		4,699
Operating Income	13,376	15,378				40,063	33,214
Interest income	4,417	5,710				16,055	16,622
Interest expense on indebtedness	(7,294)	(8,828)				(22,252)	(22,205)
Interest expense on finance leases	(229)	(228)				(686)	(340)
Change in fair value of derivatives and other	318	(530)				(1,424)	(3,926)
Equity in income of unconsolidated real estate entities	-	-				-	273
Unrealized credit loss release (provision)	33	-				(227)	-
Other income (expense), net	177		362				521		426
Income before taxes	10,798	11,864				32,050	24,064
Income tax benefit	28		199				220		339
Net Income	$10,826		$12,063				$32,270		$24,403
Net income attributable to noncontrolling interest in investment entities	45	(960)				181	(640)
Preferred stock dividends	(2,220)		(1,234)				(4,462)		(1,388)
Net income attributable to AHH and OP Unit holders	$8,651		$9,869				$27,989		$22,375
Net income per diluted share and unit attributable to AHH and OP Unit holders	$0.11	$0.13				$0.36	$0.31
Weighted Average Shares & Units - Diluted	78,443	74,543				78,020	71,256

FFO, NORMALIZED FFO & AFFO ( 1 )	11
IN THOUSANDS, EXCEPT PER SHARE DATA
			Three months ended (Unaudited)
	9/30/2020	6/30/2020	3/31/2020	12/31/2019	9/30/2019
Funds From Operations
Net income attributable to AHH and OP unit holders	$8,651	$11,178	$8,160	$7,215	$9,869
Earnings per diluted share	$0.11	$0.14	$0.11	$0.09	$0.13
Depreciation and amortization(2)	14,131	13,644	14,092	15,285	15,057
Gains on dispositions of operating real estate(3)	(3,612)	(2,776)	-	-	(3,220)
FFO	$19,170	$22,046	$22,252	$22,500	$21,706
FFO per diluted share	$0.24	$0.28	$0.29	$0.29	$0.29
Normalized FFO
Acquisition, development & other pursuit costs	26	502	27	294	93
Loss on extinguishment of debt	-	-	-	30	-
Non cash GAAP Adjustments	161	29	682	399	145
Change in fair value of interest rate derivatives	(318)		6		1,736		(327)		530
Normalized FFO	19,039	22,583	24,697	22,896	22,474
Normalized FFO per diluted share	$0.24	$0.29	$0.32	$0.30	$0.30
Adjusted FFO
Non-cash stock compensation	456	421	1,030	274	323
Acquisition, development & other pursuit costs	(26)	(502)	(27)	(294)	(93)
Tenant improvements, leasing commissions, lease incentives (4)	(2,770)	(728)	(1,318)	(1,065)	(2,057)
Property related capital expenditures	(1,373)	(2,316)	(1,014)	(2,426)	(1,565)
Adjustment for loan modification and exit fees	(614)	(614)	(2,074)	(1,860)	(1,371)
Non-cash interest expense(5)	874	673	638	588	425
Cash ground rent payment - finance lease	(291)	(241)	(216)	(216)	(207)
GAAP Adjustments	(684)		(6,295)		(984)		(958)		(1,686)
AFFO	$14,611	$12,981	$20,732	$16,939	$16,243
AFFO per diluted share	$0.19	$0.17	$0.27	$0.22	$0.22
Weighted Average Common Shares Outstanding	57,923	56,668	56,398	55,581	53,463
Weighted Average OP Units Outstanding	20,520		21,273		21,273		21,181		21,080
Total Weighted Average Common Shares and OP Units Outstanding	78,443	77,941	77,671	76,762	74,543

1. See definitions on pages 30-31.
2. Adjusted for the depreciation attributable to noncontrolling interests in consolidated investments.
3. The adjustment for gain on operating real estate dispositions for the 3 months ended 9/30/2019 excludes the portion of the gain on Lightfoot Marketplace that was allocated to our joint venture partner and excludes the gain on sale of a non-operating land parcel.
4. Excludes development, redevelopment, and first-generation space.
5. Includes non-cash interest expense relating to indebtedness and interest expense on finance leases.

	OUTSTANDING DEBT											12
	$ IN THOUSANDS
											Debt Maturities & Principal Payments
			Effective Rate as																			Outstanding as of
	Debt	Stated Rate	of 9/30/2020		Maturity Date	2020			2021	2022	2023			2024		Thereafter	9/30/2020
	Secured Notes Payable - Core Debt
	Hoffler Place	L+3.24%	3.39%		Jan-2021	-			$31,197										$31,197
	Southgate Square	L+1.60%	1.75%		Apr-2021	220			19,682										19,902
	Nexton Square	L+2.25%	2.40%		Aug-2021	-			22,909										22,909
	Encore Apartments	3.25%	3.25%		Sep-2021	127			24,337										24,464
	4525 Main Street	3.25%	3.25%		Sep-2021	164			31,231										31,395
	Red Mill West	4.23%	4.23%		Jun-2022	113			465	10,386								10,964
	Thames Street Wharf	L+1.30%	1.81%	(1)	Jun-2022	-			-	70,000								70,000
	Marketplace at Hilltop	4.42%	4.42%		Oct-2022	101			414	9,706								10,221
	1405 Point	L+2.25%	2.40%		Jan-2023	-			714	754	51,532						53,000
	Socastee Commons	4.57%	4.57%		Jan-2023	28			115	120	4,223						4,486
	Sandbridge Commons(2)	L+1.75%	1.90%		Jan-2023	62			257	268	7,248						7,835
	249 Central Park Retail	L+1.60%	3.85%	(1)	Aug-2023	59			245	260	16,092						16,656
	Fountain Plaza Retail	L+1.60%	3.85%	(1)	Aug-2023	36			147	156	9,685						10,024
	South Retail	L+1.60%	3.85%	(1)	Aug-2023	26			107	114	7,066						7,313
	One City Center	L+1.85%	2.00%		Apr-2024	152			628	659	691			22,734			24,864
	Red Mill Central	4.80%	4.80%		Jun-2024	44			175	175	175			1,837			2,406
	Premier Apartments	L+1.55%	1.70%		Oct-2024	34			208	221	234			16,053			16,750
	Red Mill South	3.57%	3.57%		May-2025	77			315	327	338			351	4,502	5,910
	Brooks Crossing Office	L+1.60%	1.75%		Jul-2025	206			831	846	861			876	11,897	15,517
	Market at Mill Creek	L+1.55%	1.70%		Jul-2025	162			647	647	647			647	11,201	13,951
	Johns Hopkins Village	L+1.25%	4.19%	(1)	Aug-2025	242			988	1,031	1,075			1,116	46,649	51,101
	North Point Center Note 2	7.25%	7.25%		Sep-2025	34			140	151	162			174	1,467	2,128
	Lexington Square	4.50%	4.50%		Sep-2028	65			268	280	293			306	13,293	14,505
	Red Mill North	4.73%	4.73%		Dec-2028	26			105	110	116			121	3,841	4,319
	Greenside Apartments	3.17%	3.17%		Dec-2029	176			712	735	759			783	30,321	33,486
	Smith's Landing	4.05%	4.05%		Jun-2035	215			880	917	956			994	13,584	17,546
	Liberty Apartments	5.66%	5.66%		Nov-2043	73			304	322	341			361	12,549	13,950
	The Cosmopolitan	3.35%	3.35%		Jul-2051		201			819		847		876			906		39,461			43,110
	Total - Secured Core Debt						2,643			138,840	99,032	103,370			47,259	188,765	579,909
	Secured Notes Payable - Development Pipeline
	Summit Place	L+3.24%	3.39%		Jan-2021	-			34,615										34,615
	Wills Wharf	L+2.25%	2.40%		Jun-2023	-			-	-	57,585						57,585
	Premier Retail	L+1.55%	1.70%		Oct-2024	17			102	109	115			7,907			8,250
	Solis Gainesville	L+3.00%	3.75%		Aug-2024
	Total - Development Pipeline						17			34,717		109		57,700			7,907		-			100,450
	Total Secured Notes Payable						$2,660			$173,557	$99,141	$161,070			$55,166	$188,765	$680,359
	Unsecured Core Debt
	Senior Unsecured Line of Credit	L+1.30%-1.85%	1.75%		Jan-2024	-			-	-	-			-	-	-
	Senior Unsecured Term Loan	L+1.25%-1.80%	1.70%		Jan-2025	-			-	-	-			-	19,500	19,500
	Senior Unsecured Term Loan	L+1.25%-1.80%	2.05% - 4.57% (1)	Jan-2025		-			-		-		-			-		185,500			185,500
	Total - Unsecured Core Debt						-			-		-		-			-		205,000			205,000
	Total Notes Payable excluding GAAP Adjustments					$2,660			$173,557		$99,141		$161,070			$55,166		$393,765			$885,359
	GAAP Adjustments																				1,150
	Total Notes Payable																			$886,509

1. Includes debt subject to interest rate swap locks.
2. Loan was extinguished on October 6, 2020.

DEBT INFORMATION

$ IN THOUSANDS

		Debt Maturities
$350,000			5.0%
$300,000
	4.0%
$250,000
	3.4%
$200,000	3.0%	3.0%
	2.8%
		2.5%
$150,000		2.1%
		2.0%
$100,000
	1.0%
$50,000
$0			0.0%

2020

2021

2022

2023

2024

Thereafter⁽¹⁾

Debt Maturing

Weighted Average Interest Rate

Interest Rate Cap Agreements

Total Debt Composition

Weighted Average

% of Debt

Interest Rate

Maturity

Effective Date

Maturity Date

Strike Rate

Secured vs. Unsecured Debt

December 2018

January 2021

2.75%

May 2019

June 2022

2.50%

Unsecured Debt

23.2%

3.1%

4.3 Yrs

January 2020

February 2022

1.75%

Secured Debt

76.8%

3.0%

5.4 Yrs

March 2020

March 2022

1.50%

Variable vs. Fixed-rate Debt

July 2020

July 2023

0.50%

Variable-rate Debt(1)

36.8%

2.4%

2.3 Yrs

Total Interest Rate Caps

Fixed-rate Debt(2)(3)

63.2%

3.4%

6.8 Yrs

Fixed-rate and Hedged Debt

(2)(3)

100%

Fixed-rate Debt(2)(3)

Total

3.0%

5.1 Yrs

Fixed-rate and Hedged Debt

Total Debt(3)

% of Total Debt(3)

13

Notional

Amount

$50,000 100,000 100,000 100,000 100,000

$450,000

$559,484

$1,009,484

$885,359

100%

1. Excludes debt subject to interest rate swap locks.
2. Includes debt subject to interest rate swap locks.
3. Excludes GAAP adjustments.

CORE DEBT TO CORE EBITDA

14

$ IN THOUSANDS

SEE PAGE 34 FOR CALCULATION AND RECONCILIATION.

					Three months ended
	9/30/2020	6/30/2020	3/31/2020	12/31/2019	9/30/2019
Net income attributable to common stockholders and OP unit holders	$8,651		$11,178		$8,160		$7,215		$9,869
Adjusted EBITDA(1)(2)(4)	$27,756	$29,933	$33,103	$30,843	$31,150
Other adjustments:
Development/Redevelopment	(2,225)	(1,085)	(1,133)	(1,010)	(1,499)
(Less) Acquisitions/Dispositions completed intra-quarter	(155)		(1,351)		-		-		(226)
Core EBITDA(4)	$25,376		$27,497		$31,970		$29,833		$29,425
Annualized Core EBITDA	$101,502	$109,989	$127,880	$119,332	$117,700
Total debt(3)	$885,359	$956,726	$1,016,293	$960,819	$951,891
Adjustments to debt:
(Less) Development/Redevelopment	(143,560)	(137,508)	(127,650)	(109,930)	(122,597)
(Less) Net Acquisitions completed intra-quarter	(22,909)	-	-	-	-
(Less) Cash & restricted cash	(79,224)		(75,111)		(52,788)		(43,579)		(47,606)
Core Debt(4)	$639,666	$744,107	$835,855	$807,310	$781,688
Core Debt/Annualized Core EBITDA	6.3x		6.8x		6.5x		6.8x		6.6x

1. See reconciliation on page 34.
2. Excludes non-recurring items.
3. Excludes GAAP Adjustments.
4. See Page 31 for definition

CAPITALIZATION & FINANCIAL RATIOS 15

$ IN THOUSANDS AS OF SEPTEMBER 30, 2020

Debt	% of Total	Principal Balance
Unsecured credit facility	0%	$0
Unsecured term loans	23%	205,000
Mortgages payable	77%	680,359
Total debt		$885,359

			Liquidation Value
Preferred Equity		Shares	Per Share	Total Liquidation Value
6.75% Series A Cumulative Redeemable	6,843	$25.00	$171,075
Perpetual Preferred Stock (NYSE: AHHPrA)
Common Equity	% of Total	Shares/Units	Stock Price	Market Value
Common stock (NYSE: AHH)	74%	57,934	$9.26	$536,469
Common units	26%	20,523	$9.26	190,043
Equity market capitalization		78,457		$726,512

Debt

Equity		50%
10%	12%
50%

Preferred Equity	Unsecured Credit Facility
	Unsecured Term Loans
Common Units	Mortgages Payable 38%

		30%
Total capitalization	$1,782,946
Financial Ratios
Debt Service Coverage Ratio(1)	2.8x			10%
Fixed Charge Coverage Ratio(2)	2.3x
Net Debt to Adjusted EBITDA	8.0x
Core Debt to Core EBITDA	6.3x
Core Debt + Preferred Equity to Core EBITDA	8.0x
Debt/Market Capitalization	50%
Liquidity				Unencumbered Properties
Cash on hand	$79,224		% of Total Properties	56%
Availability under credit facility	125,000		% of Annualized Base Rent	38%
Availability under construction loans	52,785
	$257,009

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

PROPERT Y PORTFOLIO

16

AS OF SEPTEMBER 30, 2020

Net Rentable Square Feet (RSF)(1)

																		Development/					Development/
											Town	Unencumbered					Redevelopment				Core	Redevelopment			ABR per
Retail Properties	Anchor Tenant(s)		Location		Center	ABR		Year Built	Core Properties		Properties		Total		Occupancy(2)	Leased(2)	ABR(3)		Leased SF(3)
249 Central Park Retail	Cheesecake Factory, Brooks Brothers	Virginia Beach, VA	✓	-		2004	92,400	-	92,400	89.3%	-	$2,135,402	$25.87
Apex Entertainment	Apex Entertainment, USI		Virginia Beach, VA	✓	100%		2002	-	103,335	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	-	121,504	96.7%	-	2,109,141	17.95
Broadmoor Plaza	Kroger					South Bend, IN				100%		1980	115,059	-	115,059	97.5%	-	1,387,073	12.36
Brooks Crossing Retail	Various Small Shops		Newport News, VA			100%		2016	18,349	-	18,349	66.3%	-	169,740	13.95
Columbus Village(6)	Barnes & Noble, Shake Shack		Virginia Beach, VA	✓	100%		1980/2013	62,362	-	62,362	91.0%	-	1,719,906	30.30
Columbus Village II	Regal Cinemas(12), BB&B		Virginia Beach, VA	✓	100%		1995/1996	92,061	-	92,061	96.7%	-	1,595,334	17.92
Commerce Street Retail	Yard House		Virginia Beach, VA	✓	100%		2008	19,173	-	19,173	100.0%	-	888,673	46.35
Courthouse 7-Eleven	7-Eleven					Virginia Beach, VA			100%		2011	3,177	-	3,177	100.0%	-	139,311	43.85
Dimmock Square	Best Buy, Old Navy		Colonial Heights, VA	100%		1998	106,166	-	106,166	75.3%	-	1,465,285	18.34
Fountain Plaza Retail	Ruth's Chris, Ann Taylor		Virginia Beach, VA	✓	-		2004	35,961	-	35,961	100.0%	-	998,614	27.77
Greentree Shopping Center	Various Small Shops		Chesapeake, VA			100%		2014	15,719	-	15,719	92.6%	-	328,536	22.57
Hanbury Village(6)	Harris Teeter		Chesapeake, VA			100%		2006/2009	101,815	-	101,815	100.0%	-	2,107,217	20.70
Harrisonburg Regal	Regal Cinemas(12)		Harrisonburg, VA			100%		1999	49,000	-	49,000	100.0%	-	717,850	14.65
Lexington Square	Lowes Foods		Lexington, SC				-		2017	85,440	-	85,440	98.3%	-	1,808,848	21.53
Market at Mill Creek (6)	Lowes Foods		Mt. Pleasant, SC			-		2018	80,319	-	80,319	97.7%	-	1,810,527	23.06
Marketplace at Hilltop(6)(9)	Total Wine, Panera, Chic-Fil-A		Virginia Beach, VA			-		2000/2001	116,953	-	116,953	98.6%	-	2,621,586	22.73
Nexton Square	Various Small Shops		Summerville, SC			-		2020	127,216	-	127,216	89.7%	-	2,960,280	25.93
North Hampton Market	PetSmart, Hobby Lobby		Taylors, SC				100%		2004	114,935	-	114,935	93.6%	-	1,311,368	12.19
North Point Center(6)	Harris Teeter, Home Depot, Costco	Durham, NC				88%		1998/2009	494,746	-	494,746	99.1%	-	3,750,884	7.65
Oakland Marketplace(6)	Kroger					Oakland, TN				100%		2004	64,538	-	64,538	100.0%	-	483,768	7.50
Parkway Centre	Publix					Moultrie, GA				100%		2017	61,200	-	61,200	98.0%	-	814,128	13.57
Parkway Marketplace	Rite Aid					Virginia Beach, VA			100%		1998	37,804	-	37,804	94.4%	-	733,362	20.54
Patterson Place	BB&B, PetSmart, DSW		Durham, NC				100%		2004	160,942	-	160,942	81.1%	-	2,153,162	16.50
Perry Hall Marketplace	Safeway					Perry Hall, MD				100%		2001	74,256	-	74,256	100.0%	-	1,280,535	17.24
Premier Retail	Williams Sonoma, Pottery Barn	Virginia Beach, VA	✓	-		2018	-	39,162	39,162	-	75.6%	969,014	32.73
Providence Plaza	Cranfill, Sumner & Hartzog, Chipotle	Charlotte, NC				100%		2007/2008	103,118	-	103,118	94.7%	-	2,690,403	27.56
Red Mill Commons(6)	Homegoods, Walgreens		Virginia Beach, VA			8%		2000-2005	373,808	-	373,808	89.3%	-	6,112,108	18.31
Sandbridge Commons(6)	Harris Teeter		Virginia Beach, VA			100%	(11)	2015	76,650	-	76,650	98.5%	-	1,072,632	14.21
Socastee Commons	Bi-Lo(12)					Myrtle Beach, SC			-		2000/2014	57,273	-	57,273	100.0%	-	653,270	11.41
Southgate Square	Burlington, PetSmart, Michaels, Conn's	Colonial Heights, VA	-		1991/2016	260,131	-	260,131	93.0%	-	3,362,909	13.89
South Retail	lululemon, free people, CPK		Virginia Beach, VA	✓	-		2002	38,515	-	38,515	100.0%	-	997,051	25.89
South Square	Ross, Petco, Office Depot		Durham, NC				100%		1977/2005	109,590	-	109,590	98.1%	-	1,875,689	17.45
Southshore Shops	Buffalo Wild Wings		Chesterfield, VA			100%		2006	40,307	-	40,307	83.1%	-	697,588	20.83
Studio 56 Retail	Rocket Mortgage		Virginia Beach, VA	✓	100%		2007	11,594	-	11,594	15.2%	-	52,860	30.00
Tyre Neck Harris Teeter(6)(9)	Harris Teeter		Portsmouth, VA			100%		2011	48,859	-	48,859	100.0%	-	533,285	10.91
Wendover Village	BB&B(12), T.J. Maxx, Petco		Greensboro, NC			100%		2004	176,939		-		176,939		99.4%	-	3,512,858		19.97
Total / Weighted Avg Retail Portfolio													59%			3,547,879	142,497	3,690,376	94.2%		$59,502,334	$17.13
						Square Footage
Properties with Tenants Subject to	Number of	Leased Pursuant to
Ground Lease		Ground Leases	Ground Leases	ABR
Broad Creek Shopping Center			6				23,825			$649,818
Columbus Village			1				3,403				200,000
Hanbury Village			2				55,586			1,082,118
Market at Mill Creek			1				7,014				63,000
Marketplace at Hilltop			1				4,211				149,996
North Point Center			4				280,556			1,146,700
Oakland Marketplace			1				45,000				186,347
Red Mill Commons			8				33,961				773,639
Sandbridge Commons			3				60,521				738,500
Tyre Neck Harris Teeter			1				48,859				533,285
Total / Weighted Avg			28				562,936			$5,523,403

PROPERT Y PORTFOLIO CONT.			17
AS OF SEPTEMBER 30, 2020
						Net Rentable Square Feet (RSF)(1)
			Town			Core		Development				Development
Office Properties	Anchor Tenant(s)	Location	Center	Unencumbered ABR	Year Built	Properties		Properties	Total		Core Occupancy(2)	Leased(2)	ABR(3)		ABR per Leased SF(3)
4525 Main Street	Clark Nexsen, Anthropologie, Mythics	Virginia Beach, VA	✓	-	2014	234,938	-			234,938	99.4%	-	$6,952,774	$29.78
Armada Hoffler Tower(4)(5)	AHH, Troutman Sanders, Williams Mullen	Virginia Beach, VA	✓	100%	2002	320,680	-			320,680	95.1%	-	8,899,458	29.18
Brooks Crossing Office	Huntington Ingalls Industries	Newport News, VA		-	2019	98,061	-			98,061	100.0%	-	1,850,411	18.87
One Columbus(5)	BB&T, HBA	Virginia Beach, VA	✓	100%	1984	128,770	-			128,770	97.6%	-	3,193,112	25.41
One City Center	Duke University, WeWork	Durham, NC		-	2019	151,599	-			151,599	89.3%	-	4,187,530	30.92
Thames Street Wharf(4)	Morgan Stanley, JHU Medical	Baltimore, MD		-	2010	263,426	-			263,426	99.4%	-	7,237,479	27.65
Two Columbus	HBA Architects	Virginia Beach, VA	✓	100%	2009	108,459	-			108,459	95.4%	-	2,557,899	24.72
Wills Wharf(9)	Canopy by Hilton, EY	Baltimore, MD		-	2020	-		327,133			327,133		-	47.2%	2,726,155		17.66
Total / Weighted Average Office Portfolio			39%		1,305,933		327,133			1,633,066	96.7%		$37,604,818		$26.53
								Units/Beds
								Development/				Development/
			Town			Core		Redevelopment				Redevelopment			Monthly Effective Rent
Multifamily Properties		Location	Center	Unencumbered AQR	Year Built	Properties		Properties	Total Units		Core Occupancy (2)	Occupancy(2)	AQR (7)		per Occupied Unit
1405 Point(8)(9)		Baltimore, MD		-	2018	289	-			289	92.7%	-	$7,090,006	$2,205
Encore Apartments		Virginia Beach, VA	✓	-	2014	286	-			286	98.3%	-	4,793,803	$1,422
Greenside Apartments		Charlotte, NC		-	2018	225	-			225	96.0%	-	4,236,690	$1,635
Liberty Apartments(8)		Newport News, VA		-	2013	197	-			197	93.9%	-	2,866,396	$1,111
Premier Apartments		Virginia Beach, VA	✓	-	2018	131	-			131	97.7%	-	2,517,674	$1,639
Smith's Landing(9)		Blacksburg, VA		-	2009	284	-			284	100.0%	-	4,826,763	$1,416
The Cosmopolitan(8)		Virginia Beach, VA	✓	-	2006	-		342			342		-	95.0%	6,610,640		$1,695
Multifamily Total				-		1,412	342			1,754	98.6%		$32,941,972	$1,599
Hoffler Place(8)(10)		Charleston, SC		-	2019	258	-			258	98.4%	-	$3,289,136	$1,079
Johns Hopkins Village(8)(9)(10)		Baltimore, MD		-	2016	568	-			568	88.2%	-	7,974,089	$1,326
Summit Place(10)		Charleston, SC		-	2020	-		357			357		-	98.0%	3,605,451		$858
Student Housing Total				-		826		357			1,183		91.4%		$14,868,677		$1,121
Total / Weighted Avg Multifamily Portfolio			-		2,238		699			2,937	95.9%		$47,810,649		$1,412

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 September 30, 2020, divided by (b) net rentable square feet, expressed as a percentage. Occupancy for our multifamily properties is calculated as (a) total units occupied as of September 30, 2020, divided by (b) total units 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 September 30, 2020 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 September 30, 2020. 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 $1.7M, or $31.30 per leased square foot, which amounts 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 in the table on page 16.
7. For the properties in our multifamily portfolio, AQR is calculated by multiplying (a) revenue for the quarter ended September 30, 2020 by (b) 4.
8. The AQR for Liberty, Cosmopolitan, Johns Hopkins Village, Hoffler Place, and 1405 Point excludes approximately $0.3M, $0.7M, $1.1M, $0.1M 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 September 30, 2020 by the number of occupied beds.
11. Property was unencumbered as of October 6, 2020.
12. The Company has knowledge of an upcoming termination for this tenant. See table on page 28 for additional details.

D E V E LO P M E N T & R E D E V E LO P M E N T P I P E L I N E

18

$ IN THOUSANDS

Schedule(1)

Property

Estimated

(1)

% Leased or

Construction

Initial

Stabilized

Estimated

Loan

Cost to

AHH Ownership %

Anchor Tenants

Projects

Type

LOI

Start

Occupancy

Operation(2)

Cost(1)

Commitment

Date

Under Development

Solis Gainesville

Multifamily

223 units

-

3Q20

2Q22

3Q23

$52,000

$31,000

$8,000

95%

NA

Gainesville, GA

Total Projects Under Development

$52,000

$31,000

$8,000

Delivered Not Stabilized

Premier Retail (Town Center Phase VI)

Retail

39,000 sf

76%

4Q16

3Q18

4Q21

$18,000

$8,000

$16,000

100%

Williams-Sonoma, Pottery Barn

Virginia Beach, VA

Summit Place (Meeting Street)

Multifamily

357 beds

98%

3Q17

3Q20

4Q20

56,000

35,000

56,000

90%

NA

Charleston, SC

Wills Wharf

Office

325,000 sf

53%

3Q18

2Q20

2Q22

120,000

76,000

106,000

100%

Canopy by Hilton, EY

Baltimore, MD

Total Projects Delivered Not Stabilized

$194,000

$119,000

$178,000

Predevelopment or On Hold

Chronicle Mill

238 units /

(3)

Multifamily

-

TBD

TBD

TBD

TBD

TBD

$5,000

85%

NA

Belmont, NC

10,000 sf

Southern Post

138 units /

(4)

Roswell, GA

Mixed-use

137,000 sf

-

TBD

TBD

TBD

TBD

TBD

10,000

100%

TBD

Ten Tryon

Mixed-use

220,000 sf

38%

TBD

TBD

TBD

TBD

TBD

9,000

(3)

Publix, Fortune 100 office tenant

Charlotte, NC

80%

$24,000

	Property	% Leased or	Out of	Construction	Anticipated	Restabilized	Estimated	Cost to Date	Projected
Redevelopment	Type	LOI	Service	Start	Completion	Operation(2)	Cost(1)	ROI
The Cosmopolitan	Multifamily	96%	0 units	1Q18	4Q20	4Q20	$13,000	$13,000	9%
Virginia Beach, VA

Scope

Renovated 292 units including upgraded finishes, new cabinetry and flooring, energy efficient appliances, and LED lighting; modernize resident clubhouse and business center. Remainder of units to be renovated at a later date.

Apex Entertainment Building

Revitalize 84,000 SF of big box retail space within Town Center

(Former Dick's Sporting Goods)

Mixed-use

100%

84,000 sf

1Q20

4Q20

1Q21

8,000

6,300

7%

into a destination entertainment concept for a new to market

Virginia Beach, VA

tenant, Apex Entertainment.

Total Projects Under Redevelopment

$21,000

$19,300

8%

	Q3 2020	YTD
Capitalized Interest	$534	$3,222
Capitalized Overhead	$409	$2,051

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.
4. Acquired remaining 20% ownership subsequent to quarter end.

MEZZANINE INVESTMENTS

19

$ IN THOUSANDS

Schedule(1)

Principal

Property

% Leased

Initial

Mezzanine

Mezzanine

Outstanding Investments

Type

Estimated(1)

or LOI

Occupancy

Loan Maturity

Interest Rate

Financing

Interest QTD

Solis Apartments at Interlock

Multifamily

349 units

NA

4Q20

3Q22

13%

$23,000

$847

Atlanta, GA

The Interlock

Mixed-use

300,000 sf

77%

4Q20

3Q22

15%

67,000

2,575

Atlanta, GA

Nexton Square-loan paid off during quarter

380

Total

$90,000

$3,802

Mezzanine Interest Expense

(659)

Net Mezzanine Interest Income

$3,143

9/30/20

Principal

Property

% Leased

Financing

AHH Investment to Acquisitions

Type

Estimated(1)

or LOI

Outstanding

Acquisition Status

Nexton Square-Phase I

Mixed-use

118,000 sf

94%

$

-

Exercised Discounted Purchase Option 9/22/20

Summerville, SC

Delray Plaza (Whole Foods)(2)

Retail

83,000 sf

100%

12,000

Signed LOI to acquire property

Delray Beach, FL

The Residences at Annapolis Junction(2)

Multifamily

416 units

96%

36,000

Acquired 10/30/20

Annapolis Junction, MD

The Interlock

Atlanta, GA

1. Represents estimates that may change as the development process proceeds
2. Stopped GAAP recognition of mezzanine income as of 4/1/20

ACQUISITIONS & DISPOSITIONS	20
$ IN THOUSANDS
	ACQUISITIONS
								Reinvested			$ Value of		Cash Cap
	Properties	Location	Square Feet		Purchase Price(1)		1031 Proceeds		OP Units/Stock(2)		Rate	Purchase Date	Anchor Tenants
	Edison Apartments	Richmond, VA	174 units	$25,700			$ -			$7,600		6.8%	4Q20	NA
	Thames Street Wharf	Baltimore, MD	263,426	101,000			-			-		7.1%	2Q19	Morgan Stanley, JHU Medical
	Red Mill Commons &	Virginia Beach, VA	488,865	105,000			-			63,755		7.7%	2Q19	T.J. Maxx, Homegoods, Total Wine,
	Marketplace at Hilltop						Walgreens
	Wendover Village III	Greensboro, NC	5,286	2,783			2,424			-		9.2%	1Q19	Verizon
	Lexington Square	Lexington, SC	85,531	26,758			-			2,769		6.7%	3Q18	Lowes Foods
	Parkway Centre	Moultrie, GA	61,200	11,200			-			1,624		6.4%	1Q18	Publix
	Indian Lakes	Virginia Beach, VA	71,020	14,700			-			-		7.1%	1Q18	Harris Teeter, Wawa
	Wendover Village Outparcel	Greensboro, NC	35,895	14,300			7,900			-		7.7%	3Q17	Panera, Rooms to Go Kids
	Renaissance Square	Davidson, NC	80,468	17,085			-			-		7.1%	4Q16	Harris Teeter
	Columbus Village II	Virginia Beach, VA	92,061	26,200			-			26,200		5.6%	4Q16	Regal, Bed Bath & Beyond
	Southshore Shops	Midlothian, VA	40,333	9,160			-			2,475		7.8%	3Q16	Buffalo Wild Wings
	Southgate Square	Colonial Heights, VA	220,131	38,585			-			17,485		7.3%	2Q16	PetSmart, Michael's, Burlington
	Retail Portfolio (11 properties)	Mid-Atlantic	1,082,681	170,500			87,000			-		7.2%	1Q16	Harris Teeter, Bed Bath & Beyond
	Providence Plaza	Charlotte, NC	103,118	26,200			14,000			-		7.3%	3Q15	Chipotle
	Socastee Commons	Myrtle Beach, SC	57,573	8,600			3,600			-		7.3%	3Q15	BiLo
	Columbus Village	Virginia Beach, VA	65,746	21,025			-			14,025		6.4%	3Q15	Barnes & Noble
	Perry Hall Marketplace & Stone	Maryland	182,949	39,555			15,200			4,155		7.4%	2Q15	Safeway & Weis Markets
	House Square
	Dimmock Square	Colonial Heights, VA	106,166		19,662			-			9,662		7.3%	3Q14	Old Navy, Best Buy
	Total/Weighted Average		3,042,449/	$678,013	$	130,124	$	149,750		7.2%
			174 units
	DISPOSITIONS
			Square										Cash Cap
	Properties	Location	Feet/Units		Sale Price		Cash Proceeds			Gain on Sale		Rate	Disposition Date	Anchor Tenants
	Hanbury Walgreens	Chesapeake, VA	14,820	$7,300			$7,000			$3,558		6.1%	3Q20	Walgreens
	Retail Portfolio (7 properties)	Mid-Atlantic	630,780	90,000			88,000			2,776		7.8%	2Q20	Harris Teeter, Food Lion, Weis
						Markets, Office Max
	Lightfoot Marketplace	Williamsburg, VA	124,715	30,275			11,800			4,477	(4)	5.8%	3Q19	Harris Teeter
	Indian Lakes Wawa	Virginia Beach, VA	6,047	4,400			4,400			-		5.4%	2Q18	Wawa
	Commonwealth of VA Buildings	Virginia Beach & Chesapeake, VA	47,366	13,150			8,000			4,194		6.8%	3Q17	Commonwealth of VA
	Greentree Wawa	Chesapeake, VA	5,088	4,600			4,400			3,396		5.0%	1Q17	Wawa
	Oyster Point(3)	Newport News, VA	100,139	6,500			-			3,793		16.4%	3Q16	GSA
	Non-Core Retail Portfolio	Various	174,758	12,850			12,600			(27)		7.1%	2Q16 - 3Q16	Kroger, Family Dollar
	Richmond Tower	Richmond, VA	206,969	78,000			77,000			26,674		7.9%	1Q16	Williams Mullen
	Oceaneering	Chesapeake, VA	154,000	30,000			10,000			4,987		6.7%	4Q15	Oceaneering International
	Whetstone Apartments	Durham, NC	203 units	35,625			17,600			7,210		5.7%	2Q15	NA
	Sentara Williamsburg	Williamsburg, VA	49,200	15,450			15,200			6,197		6.3%	1Q15	Sentara
	Virginia Natural Gas	Virginia Beach, VA	31,000		8,900			7,400			2,211		6.3%	4Q14	Virginia Natural Gas
	Total/Weighted Average		1,544,882 sf/	$337,050			$263,400			$69,446		7.2%
			203 units

1. Contractual purchase price.
2. Value of OP Units/common stock at issuance.
3. Anchor tenant vacated 12/31/16, which would represent a 2.5% Cash Cap Rate.
4. Includes JV interest in the property.

CONSTRUCTION BUSINESS SUMMARY 21

$ IN THOUSANDS

						Total Contract		Work in Place as			Estimated Date
Highlighted Projects			Location	Value		of 9/30/2020		Backlog	of Completion
The Interlock			Atlanta, GA	$95,560	$81,507	$14,053	4Q 2020
27th Street Garage and Apartments		Virginia Beach, VA	80,749	41,190	39,559	3Q 2021
Solis Apartments at Interlock			Atlanta, GA	64,715	50,295	14,420	1Q 2021
Boulders Lakeside Apartments			Chesterfield, VA	35,717	33,529	2,188	4Q 2020
Holly Springs Apartments			Holly Springs, NC	34,755		6,632		28,123	3Q 2021
Sub Total					311,496	213,153	98,343
All Other Projects					293,017		268,669		24,348
Total					$604,513	$481,822	$122,691
		Gross Profit Summary
	Q3 2020		Trailing 12
		Months
		(Unaudited)
Revenue	$58,617	$203,024
Expense		(56,509)		(196,084)
Gross Profit	$2,108	$6,940

The Interlock Atlanta, GA

SAME STORE NOI BY SEGMENT		22
$ IN THOUSANDS (RECONCILIATION TO GAAP LOCATED IN APPENDIX ON PG. 35)
			Three months ended						Nine months ended
	9/30/2020	9/30/2019			$ Change		% Change		9/30/2020	9/30/2019			$ Change		% Change
Office(1)			(Unaudited)							(Unaudited)
Revenue	$10,232	$10,283			($51)	-0.5%	$15,812	$16,148			($336)	-2.1%
Rental Expenses(2)	2,361	2,598			(237)	-9.1%	4,146	4,210			(64)	-1.5%
Real Estate Taxes	1,287		1,141			146		12.8%		1,664		1,588			76		4.8%
Net Operating Income	$6,584	$6,544			$40	0.6%	$10,002	$10,350			($348)	-3.4%
Retail(1)
Revenue	$14,530	$16,686			($2,156)	-12.9%	$36,656	$39,019			($2,363)	-6.1%
Rental Expenses(2)	2,206	2,273			(67)	-2.9%	4,977	5,337			(360)	-6.7%
Real Estate Taxes	1,724		1,784			(60)		-3.4%		4,254		4,113			141		3.4%
Net Operating Income	$10,600	$12,629			($2,029)	-16.1%	$27,425	$29,569			($2,144)	-7.3%
Multifamily(1)
Revenue	$9,152	$8,836			$316	3.6%	$16,157	$16,299			($142)	-0.9%
Rental Expenses(2)	3,108	3,053			55	1.8%	5,198	5,245			(47)	-0.9%
Real Estate Taxes	967		574			393		68.5%		1,468		1,167			301		25.8%
Net Operating Income	$5,077	$5,209			($132)	-2.5%	$9,491	$9,887			($396)	-4.0%
Same Store Net Operating Income (NOI)	$22,261		$24,382			($2,121)		-8.7%		$46,918		$49,806			($2,888)		-5.8%
GAAP Adjustments	(261)	(1,221)			960			(2,159)	(1,492)			(667)
Same store portfolio NOI, cash basis
excluding nine months ended $2.2M of deferred rent	$22,000	$23,161			($1,161)	-5.0%	$44,759	$48,314			($3,555)	-7.4%
NOI, Cash Basis
Office	$6,298	$5,896			$402	6.8%	$9,922	$9,486			$436	4.6%
Retail	10,906	12,231			(1,325)	-10.8%	25,536	29,222			(3,686)	-12.6%
Multifamily	4,796		5,034			(238)		-4.7%		9,301		9,606			(305)		-3.2%
	$22,000	$23,161			($1,161)	-5.0%	$44,759	$48,314			($3,555)	-7.4%
NOI:
Office	$6,584	$6,544			$40	0.6%	$10,002	$10,350			($348)	-3.4%
Retail	10,600	12,629			(2,029)	-16.1%	27,425	29,569			(2,144)	-7.3%
Multifamily	5,077		5,209			(132)		-2.5%		9,491		9,887			(396)		-4.0%
	$22,261	$24,382			($2,121)	-8.7%	$46,918	$49,806			($2,888)	-5.8%

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 $0.5M and $0.5M for the 3 months ended 9/30/2020 & 9/30/2019, respectively, and $1.0M and $1.2M for the months ended 9/30/20 & 9/30/19, respectively.

TOP 10 TENANTS BY ABR ( 1 )	23
$ IN THOUSANDS AS OF SEPTEMBER 30, 2020
Office Portfolio
			Number		Lease	Annualized Base			% of Office Portfolio		% of Total Portfolio
Tenant		of Leases		Expiration	Rent			Annualized Base Rent		Annualized Base Rent
Morgan Stanley	2	2023	; 2027			$ 5,879	15.6%	4.1%
Clark Nexsen	1	2029			2,692			7.2%		1.9%
WeWork	1	2034			2,010			5.3%		1.4%
Duke University	1	2029			1,579			4.2%		1.1%
Huntington Ingalls	1	2029			1,544			4.1%		1.1%
Mythics	1	2030			1,211			3.2%		0.8%
Johns Hopkins Medicine	1	2023			1,149			3.1%		0.8%
Pender & Coward	1	2030			926			2.5%		0.6%
Kimley-Horn	1	2027			912			2.4%		0.6%
Troutman Sanders	1	2025			889			2.4%		0.6%
Top 10 Total								$ 18,791	50.0%	13.0%
Retail Portfolio(2)
			Number		Lease	Annualized Base			% of Retail Portfolio		% of Total Portfolio
Tenant		of Leases		Expiration	Rent			Annualized Base Rent		Annualized Base Rent
Harris Teeter/Kroger	6	2020	- 2035			$ 3,476	5.8%	2.4%
Lowes Foods	2	2037	; 2039			1,976	3.3%	1.4%
PetSmart		5		2022	- 2025			1,461			2.5%		1.0%
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			892	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%
TJ Maxx/HomeGoods	3	2022	- 2025			748	1.3%	0.5%
Safeway	1	2026			718	1.2%	0.5%
Top 10 Total								$ 12,895	21.8%	8.8%

1. Includes leases at redevelopment properties that have been delivered, but not stabilized.
2. Tenants with known terminations (see table on page 28) have been removed.

	LEASE SUMMARY												24
O F F I C E
	Renewal Lease Summary							GAAP							Cash
		Number of																Weighted
		Leases	Net Rentable SF	Leases	Net Rentable		Contractual	Prior Rent		Releasing			Contractual	Prior Rent	Releasing	Average Lease		TI & LC
	Quarter	Signed	Signed		Expiring	SF Expiring		Rent per SF	per SF		Spread			Rent per SF	per SF	Spread	Term (yrs)	TI & LC	per SF
	Q3 2020	-			-	1	13,316	$0.00	$0.00	0.0%	$0.00	$0.00	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
	Q1 2020	1		17,194	4	7,373	32.77	30.32	8.1%	29.75	31.40	-5.3%	8.00	1,004,346	58.41
	Q4 2019	2			8,147	1	3,929	25.43	24.23	4.9%	24.74	25.69	-3.7%	4.06	64,668	7.94
	New Lease Summary(1)
		Number of			Cash	Weighted
		Leases	Net Rentable SF	Contractual	Average			TI & LC
	Quarter	Signed	Signed		Rent per SF	Lease Term		TI & LC	per SF
	Q3 2020	2			8,984	$24.98	6.59	$525,540	$58.50
	Q2 2020	-			-	-	-	-	-
	Q1 2020	1			3,186	26.50	5.00	112,578	35.34
	Q4 2019	1			2,363	23.75	6.00	138,300	58.53
R E T A I L
	Renewal Lease Summary							GAAP							Cash
		Number of	Net															Weighted
		Leases	Rentable SF			Net Rentable SF	Contractual	Prior Rent per		Releasing			Contractual	Prior Rent	Releasing	Average Lease		TI & LC
	Quarter	Signed	Signed	Leases Expiring	Expiring	Rent per SF	SF		Spread			Rent per SF	per SF	Spread	Term (yrs)	TI & LC	per SF
	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
	Q1 2020	3	35,767		16	158,218	13.11	12.98	1.0%		13.15	13.00	1.1%	4.81	74,321	2.08
	Q4 2019	23	110,368		14	34,291	17.94	16.79	6.9%		17.87	17.15	4.2%	5.25	202,576	1.84
	New Lease Summary(1)
		Number of	Net		Cash	Weighted
		Leases	Rentable SF		Contractual	Average Lease			TI & LC
	Quarter	Signed	Signed		Rent per SF	Term (yrs)		TI & LC	per SF
	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
	Q1 2020	7	13,073		18.33	5.24	184,426	14.11
	Q4 2019	12	72,921		17.50	10.02	3,207,564	43.99

1. Excludes leases from properties in development.

OFFICE LEASE EXPIRATIONS			25
AS OF SEPTEMBER 30, 2020
					% Portfolio Net					% of Portfolio		Annualized Base
	Number of Leases		Square Footage of		Rentable Square		Annualized Base		Annualized Base		Rent per Leased
Year	Expiring		Leases Expiring(1)		Feet			Rent(1)		Rent			Square Foot
Available	-	43,057	3.3%	$	-	-	$	-
M-T-M	2	-	-			2,400	-			-
2020	4	3,657	0.3%			109,249	0.3%			29.87
2021	13	49,309	3.8%			1,379,195	4.0%			27.97
2022	9	47,077	3.6%			1,279,570	3.7%			27.18
2023	12	103,647	7.9%			2,764,437	7.9%			26.67
2024	10	134,075	10.3%			3,287,068	9.4%			24.52
2025	18	142,117	10.9%			4,206,527	12.1%			29.60
2026	9	45,214	3.5%			1,132,901	3.2%			25.06
2027	5	254,819	19.5%			7,355,848	21.1%			28.87
2028	7	69,036	5.3%			2,001,502	5.7%			28.99
2029	7	242,709	18.6%			6,265,518	18.0%			25.81
2030	6	107,801	8.3%			3,046,801	8.7%			28.26
Thereafter	2	63,415	4.7%			2,047,646	5.9%			32.29
Total / Weighted Average	104		1,305,933		100.0%		$	34,878,662		100.0%		$	27.62

300,000	25.0%	Square Feet	% of Portfolio
250,000	20.0%	Under Lease	ABR
	2,500 or less	3%
200,000
15.0%	2,501-10,000	14%
150,000
	10,001-20,000	16%
	10.0%
100,000	20,001-40,000	21%
50,000	5.0%	40,001-100,000	30%
-	0.0%	Greater than 100,000	16%
Office Portfolio Total	100%
Leased Square Feet	% ABR of Office Portfolio

(1) Excludes leases from properties in development and delivered, not yet stabilized.

RETAIL LEASE EXPIRATIONS					26
AS OF SEPTEMBER 30, 2020
					% Portfolio Net					% of Portfolio		Annualized Base
	Number of Leases		Square Footage of		Rentable Square		Annualized Base		Annualized Base		Rent per Leased
Year	Expiring		Leases Expiring(1)		Feet			Rent(1)		Rent			Square Foot
Available	-	206,920	5.7%	$	-	-	$	-
M-T-M	1	1,400	-			25,550	-			18.25
2020	15	204,290	5.6%			3,039,455	5.2%			14.88
2021	65	287,458	7.9%			5,032,353	8.6%			17.51
2022	75	334,540	9.2%			5,488,115	9.4%			16.40
2023	65	432,320	11.8%			6,942,875	11.9%			16.06
2024	74	317,985	8.7%			6,106,181	10.4%			19.20
2025	85	586,283	16.1%			8,220,447	14.0%			14.02
2026	39	270,117	7.4%			5,212,918	8.9%			19.30
2027	24	153,482	4.2%			3,241,593	5.5%			21.12
2028	22	98,282	2.7%			1,561,712	2.7%			15.89
2029	25	108,074	3.0%			2,285,233	3.9%			21.15
2030	24	135,702	3.7%			3,096,964	5.3%			22.82
Thereafter	23	514,361	14.0%			8,279,921	14.2%			16.10
Total / Weighted Average	537	3,651,214	100.0%	$	58,533,317	100.0%	$	16.99

700,000	16.0%
600,000	14.0%
500,000	12.0%
400,000	10.0%
	8.0%
300,000	6.0%
200,000	4.0%
100,000	2.0%
-	0.0%

Square Feet
Under Lease	% of Portfolio ABR
2,500 or less	15%
2,501-10,000	33%
10,001-20,000	14%
20,001-40,000	15%
40,001-100,000	22%
Greater than 100,000	1%
Retail Portfolio Total	100%

		Leased Square Feet		% ABR of Retail Portfolio

(1) Excludes leases from properties in development and delivered, not yet stabilized.

C OV I D - 19 OVERALL COLLECTIONS ( 2 ) 27

AS OF OCTOBER 27, 2020 $ in Thousands

				COLLECTIONS BY SECTOR
		OFFICE		MULTIFAMILY	RETAIL	TOTAL
Period		$	%	$	%	$	%	$	%
2Q20(3)	$	9,811	100%	$10,527	99%	$12,030	72%	$32,368	87%
3Q20	$	9,895	100%	$12,187	98%	$15,259	93%	$37,341	96%
October(1)	$	3,349	100%	$ 4,215	97%	$ 5,190	94%	$12,754	96%

3 Q 2 0

C O L L E C T I O N S ( 4 )

96%2%

2%

Collected

Outstanding

3 Q 2 0 T O P 2 0

C O L L E C T I O N S ( 1 ) ( 4 )

99%

1%

1. Excludes 2 Regal leases which were terminated subsequent to 9/30/20.
2. Data reported relates to rent charges and collections through 10/27/20 and does not correspond to the reporting segment classification of the properties as a whole.
3. Data from second quarter supplemental package.
4. As a percentage of 3Q20 rent and recovery charges due.

C OV I D - 19 EFFECT					28
AS OF OCTOBER 27, 2020
$ in Thousands
S I G N I F I C A N T K N O W N T E R M I N A T I O N S
		Effective						ABR per		D E F E R R E D R E N T
Tenant	Property	Date	SF Impact	ABR Impact		Leased SF
Bed, Bath, & Beyond	North Point Center	1/31/2021	30,000			$300,000	$10.00		Deferred Rent	Repayment Period
Bed, Bath, & Beyond	Wendover Village	1/31/2021	33,696			404,352	12.00
			Outstanding(1)
Regal Cinemas(A)	Columbus Village II	10/20/2020	51,545			995,334	19.31		YTG 2020	2021	2022
Regal Cinemas(A)	Harrisonburg Regal	10/25/2020	49,000			717,850	14.65
		$2,500	$700	$1,700	$100
Bi-Lo(A)	Socastee Commons	1/31/2021	46,673			492,400		10.55
Total / Weighted Avg			210,914			$2,909,936		$13.80
Proforma Retail 3Q20 Occupancy Assuming Vacancy of Known Terminations	88.3%
Proforma Total 3Q20 Occupancy Assuming Vacancy of Known Terminations		92.9%

(A) Vacancy of tenant allows the Company to consider redevelopment of this property

Q u a r t e r - O v e r - Q u a r t e r R e n t D e f e r r a l

(1) Includes $0.1M of unsigned deferrals that are under negotiation or with the tenant for execution.

APPENDIX

D E F I N I T I O N S & R E C O N C I L I AT I O N S

Town Center

Virginia Beach, VA

D E F I N I T I O N S

30

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.

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.

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 indi cative 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.

D E F I N I T I O N S

31

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.

D E F I N I T I O N S

32

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.

S A M E S T O R E V S . N O N - S A M E S T O R E P R O P E R T I E S

33

	Three Months Ended		Nine Months Ended
	9/30/2020 to 2019		9/30/2020 to 2019
	Same	Non-Same		Same	Non-Same
	Store	Store		Store	Store
Retail Properties
249 Central Park Retail	X			X
Apex Entertainment		X			X
Broad Creek Shopping Center	X			X
Broadmoor Plaza	X			X
Brooks Crossing (Retail)		X			X
Columbus Village		X			X
Columbus Village II	X			X
Commerce Street Retail	X			X
Courthouse 7-Eleven	X			X
Dimmock Square	X			X
Fountain Plaza Retail	X			X
Greentree Shopping Center	X			X
Hanbury Village	X			X
Harrisonburg Regal	X			X
Lexington Square	X			X
Market at Mill Creek	X				X
Marketplace at Hilltop	X				X
Nexton Square		X			X
North Hampton Market	X			X
North Point Center	X			X
Oakland Marketplace	X			X
Parkway Centre	X			X
Parkway Marketplace	X			X
Patterson Place	X			X
Perry Hall Marketplace	X			X
Premier Retail		X			X
Providence Plaza	X			X
Red Mill Commons	X				X
Sandbridge Commons	X			X
Socastee Commons	X			X

	Three Months Ended	Nine Months Ended
	9/30/2020 to 2019	9/30/2020 to 2019
	Same	Non-Same	Same	Non-Same
	Store	Store	Store	Store
Retail Properties (Continued)
South Retail	X		X
South Square	X		X
Southgate Square	X		X
Southshore Shops	X		X
Studio 56 Retail	X		X
Tyre Neck Harris Teeter	X		X
Wendover Village	X		X
Wendover Village II	X		X
Wendover Village III	X			X
Office Properties
4525 Main Street	X		X
Armada Hoffler Tower	X		X
Brooks Crossing (Office)	X			X
One City Center	X			X
One Columbus	X		X
Thames Street Wharf	X			X
Two Columbus	X		X
Wills Wharf		X		X
Multifamily Properties
1405 Point	X			X
Encore Apartments	X		X
Greenside Apartments	X			X
Hoffler Place		X		X
Johns Hopkins Village	X		X
Liberty Apartments	X		X
Premier Apartments	X			X
Smith's Landing	X		X
Summit Place		X		X
The Cosmopolitan		X		X

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 ,	34
A N D C O R E D E B T ( 1 )
$ IN THOUSANDS					Three months ended
9/30/2020		6/30/2020		3/31/2020	12/31/2019	9/30/2019
Net income attributable to common stockholders and OP unit holders	$8,651		$11,178		$8,160	$7,215	$9,869
Excluding:
Depreciation and amortization(2)	14,131		13,644		14,092	15,285	15,057
Gain on operating real estate dispositions	(3,612)	(2,776)	-	-	(3,220) (3)
Income tax provision (benefit)	(28)	65		(257)	(152)	(199)
Interest expense(2)	7,249		6,904		7,805	8,359	8,624
Change in fair value of interest rate derivatives	(318)	6		1,736	(327)	530
Loss on extinguishment of debt	-		-		-	30	-
GAAP adjustments related to finance leases	160		158		160	159	166
Non-Recurring Bad Debt	1,100	(4)	450	(5)	-	-	-
Unrealized credit loss provision (release)	(33)	(117)	377	-	-
Non-cash stock compensation	456		421		1,030		274		323
Adjusted EBITDA(3)	$27,756		$29,933		$33,103	$30,843	$31,150
Development/Redevelopment:
Premier Retail	(223)	(207)	(210)	(115)	(159)
The Cosmopolitan Apartments	(981)	(878)	(923)	(904)	-
Wills Wharf	(633)	-		-	-	-
Summit Place	(388)	-		-	-	-
Other Development	-		-		-	9	(1,340)
Total Development/Redevelopment	(2,225)	(1,085)	(1,133)	(1,010)	(1,499)
Dispositions completed intra-quarter	(80)	(1,351)	-	-	(226)
Acquisitions completed intra-quarter	(75)		-		-		-
Core EBITDA	$25,376		$27,497		$31,970		$29,833		$29,425
Annualized Core EBITDA	$101,502		$109,989		$127,880	$119,332	$117,700
Total debt(6)	$885,359		$956,726		$1,016,293	$960,819	$951,891
(Less) Development/Redevelopment
Premier Retail	(8,250)	(8,250)	(8,250)	(8,250)	(7,440)
The Cosmopolitan Apartments	(43,110)	(43,309)	(43,506)	(43,702)	(43,896)
Wills Wharf	(57,585)	(53,660)	(45,759)	(29,154)	(17,714)
Summit Place	(34,615)	(32,289)	(30,135)	(28,824)	(26,950)
Other Development	-		-		-	-	(26,597)
Total Development/Redevelopment	(143,560)	(137,508)	(127,650)	(109,930)	(122,597)
(Less) Net Acquisitions completed intra-quarter	(22,909)	-		-	-	-
(Less) Cash & restricted cash	(79,224)		(75,111)		(52,788)		(43,579)		(47,606)
Core Debt	$639,666		$744,107		$835,855	$807,310	$781,688

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.

R E C O N C I L I AT I O N TO P R O P E R T Y P O R T F O L I O N O I 35

$ IN THOUSANDS

	Three months ended 9/30		Nine months ended 9/30
	2020	2019		2020	2019
Office Same Store(1)
Rental revenues	$10,232	$10,283	$15,812	$16,148
Property expenses	3,648		3,739		5,810		5,798
NOI	6,584	6,544	10,002	10,350
Non-Same Store NOI(2)	455		(155)		10,512		4,459
Segment NOI	$7,039	$6,389	$20,514	$14,809
Retail Same Store(1)
Rental revenues	$14,530	$16,686	$36,656	$39,019
Property expenses	3,930		4,057		9,231		9,450
NOI	10,600	12,629	27,425	29,569
Non-Same Store NOI(2)	643		2,836		13,292		13,224
Segment NOI	$11,243	$15,465	$40,717	$42,793
Multifamily Same Store(1)
Rental revenues	$9,152	$8,836	$16,157	$16,299
Property expenses	4,075		3,627		6,666		6,412
NOI	5,077	5,209	9,491	9,887
Non-Same Store NOI(2)	1,294		1,104		9,885		6,746
Segment NOI	$6,371	$6,313	$19,376	$16,633
Total Property Portfolio NOI	$24,653		$28,167		$80,607		$74,235

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.

RECONCILIATION TO GAAP NET INCOME 36

$ IN THOUSANDS

									Three months ended 9/30/2020
												Total Rental		General Contracting &
		Office		Retail			Multifamily			Properties			Real Estate Services			Total
Segment revenues	$	11,456			$	15,669	$	12,511	$	39,636	$	58,617	$	98,253
Segment expenses		4,417				4,426			6,140			14,983			56,509			71,492
Net operating income	$	7,039			$	11,243	$	6,371	$	24,653	$	2,108	$	26,761
Depreciation and amortization																		(14,176)
General and administrative expenses																		(2,601)
Acquisition, development and other pursuit costs																	(26)
Impairment charges																		(47)
Gain on real estate dispositions																		3,612
Interest income																		4,417
Interest expense																		(7,294)
Interest expense - finance leases																		(229)
Unrealized credit loss release (provision)																		33
Amortization of right-of-use assets - finance leases																	(147)
Change in fair value of derivatives and other																		318
Other income																		177
Income tax benefit																		28
Net income																$	10,826
Net loss attributable to noncontrolling interest in investment entities														45
Preferred stock dividends																		(2,220)
Net income attributable to AHH and OP unit holders												$	8,651
									Nine months ended 9/30/2020
												Total Rental		General Contracting &
		Office		Retail			Multifamily			Properties			Real Estate Services			Total
Segment revenues	$	32,142			$	54,794	$	34,904	$	121,840	$	163,283	$	285,123
Segment expenses		11,628				14,077			15,528			41,233			157,401			198,634
Net operating income	$	20,514			$	40,717	$	19,376	$	80,607	$	5,882	$	86,489
Depreciation and amortization																		(42,232)
General and administrative expenses																		(9,382)
Acquisition, development and other pursuit costs																	(555)
Impairment charges																		(205)
Gain on real estate dispositions																		6,388
Interest income																		16,055
Interest expense																		(22,252)
Interest expense - finance leases																		(686)
Unrealized credit loss release (provision)																		(227)
Amortization of right-of-use assets - finance leases																	(440)
Change in fair value of derivatives and other																		(1,424)
Other income																		521
Income tax benefit																		220
Net income																$	32,270
Net loss attributable to noncontrolling interest in investment entities														181
Preferred stock dividends																		(4,462)
Net income attributable to AHH and OP Unitholders												$	27,989