Armada Hoffler Properties : 2023 Q3 Supplemental Financial Package

FORWARD-LOOKING STATEMENTS

This Supplemental Financial Package should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated November 2, 2023, which has been furnished as Exhibit 99.1 to our Form 8-K furnished on November 2, 2023. 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")), and, as such, may involve known and unknown risks and uncertainties,

and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These forward-

looking statements may include comments relating to the current and future performance of the Company's operating property portfolio, the Company's development pipeline, the Company's real estate financing program, the Company's construction and development business, including

backlog and timing of deliveries and estimated costs, financing activities, as well as acquisitions, dispositions, and the Company's financial outlook,

guidance, and expectations. For a description of factors that may cause the Company's actual results or performance to differ from its forward- looking statements, please review the information under the heading "Risk Factors" included in the Company's Annual Report on Form 10-K for the

year ended December 31, 2022, 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 fac tors discussed in the Company's filings with the SEC from time to time. The Company expressly disclaims any obligation or undertaking to update or revise any forward-

looking statement contained herein, to reflect any change in the Company's expectations with regard thereto, or any other cha nge in events,

conditions or circumstances on which any such statement is based, except to the extent otherwise required by applicable law.

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CORPORATE PROFILE

Armada Hoffler (NYSE: AHH) is a vertically integrated, self-managed real estate investment trust with over four decades of experience developing, building, acquiring, and managing high-quality retail, office, 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.

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		Shawn J. Tibbetts, Chief Operating Officer
Eva S. Hardy, Lead Independent Director		Matthew T. Barnes-Smith, Chief Financial Officer
George F. Allen, Independent Director		Eric E. Apperson, President of Construction
James A. Carroll, Independent Director		Shelly R. Hampton, President of Asset Management
James C. Cherry, Independent Director
Dennis H. Gartman, Independent Director		CREDIT RATING
A. Russell Kirk, Director
John W. Snow, Independent Director		Rating: BBB
		Agency: DBRS Morningstar
ANALYST COVERAGE
Bank of America Merrill Lynch	Jefferies		Robert W. Baird & Co.
Camille Bonnel	Peter Abramowitz		Wesley Golladay
[phone]	[phone]		[phone]
[e-mail]	[e-mail]	[e-mail]
Janney, Montgomery, & Scott LLC	Raymond James & Associates	Stifel
Robert Stevenson	Bill Crow		Stephen Manaker
[phone]	[phone]		[phone]
[e-mail]	[e-mail]	[e-mail]

HIGHLIGHTS

• Net income attributable to common stockholders and OP Unit holders of $5.3 million, or $0.06 per diluted share, compared to $33.9 million, or $0.38 per diluted share, for the three months ended September 30, 2022.
• Funds from operations attributable to common stockholders and OP Unit holders ("FFO") of $27.6 million, or $0.31 per diluted share, compared to $22.7 million, or $0.26 per diluted share, for the three months ended September30, 2022. See "Non-GAAP Financial Measures."
• Normalized funds from operations attributable to common stockholders and OP Unit holders ("Normalized FFO") of $27.7 million, or $0.31 per diluted share, compared to $25.8 million, or $0.29 per diluted share, for the three months ended September 30, 2022.
• Maintained the Company's previous guidance range for 2023 full-year Normalized FFO of $1.23 to $1.27 per diluted share.
• Maintained a 97% weighted average portfolio occupancy as of September 30, 2023. Retail occupancy was 98%, office occupancy was 96%, and multifamily occupancy was 96%.
• Third quarter commercial lease renewal spreads increased 14.5% on a GAAP basis and 4.9% on a cash basis.
• Same Store NOI increased 4.4% on a GAAP basis and 5.9% on a cash basis compared to the quarter ended September30, 2022:
• • Retail Same Store NOI increased 6.6% on a GAAP basis and 6.4% on a cash basis.
  • Office Same Store NOI increased 2.3% on a GAAP basis and 8.1% on a cash basis.
  • Multifamily Same Store NOI increased 3.1% on a GAAP basis and 2.2% on a cash basis.
• Third-partyconstruction backlog as of September 30, 2023 was $513.6 million and construction gross profit for the third quarter was $3.3 million.

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2023 OUTLOOK

OUTLOOK(1)	LOW	HIGH
PORTFOLIO NOI	$161.1M	$161.9M
CONSTRUCTION SEGMENT PROFIT	$11.8M	$12.8M
G&A EXPENSES	$17.8M	$18.4M
INTEREST INCOME	$14.5M	$14.9M
INTEREST EXPENSE(2)	$47.2M	$47.8M
NORMALIZED FFO PER DILUTED SHARE	$1.23	$1.27

1. See appendix for definitions. Ranges exclude certain items as per definition.
2. Includes the interest expense on finance leases and interest receipts of non -designated derivatives.

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SUMMARY INFORMATION

$ IN THOUSANDS, EXCEPT PER SHARE

					Three Months Ended
		OPERATIONAL METRICS	9/30/2023	6/30/2023	3/31/2023	12/31/2022
		Net Income Attributable to Common Stockholders and OP Unitholders	$5,343	$11,729	$2,376	$11,517
		Net Income per Diluted Share Attributable to Common Stockholders and OP Unitholders	$0.06	$0.13	$0.03	$0.13
		Normalized FFO Attributable to Common Stockholders and OP Unitholders	27,735	28,301	26,498	30,633
		Normalized FFO per Diluted Share Attributable to Common Stockholders and OP Unitholders	$0.31	$0.32	$0.30	$0.35
		Stabilized Portfolio Debt / Stabilized Portfolio Adjusted EBITDA	6.2x		5.5x		5.4x		5.3x
		Fixed Charge Coverage Ratio	2.2x		2.3x		2.3x		2.6x
		CAPITALIZATION
		Common Shares Outstanding	67,885	67,945	67,939	67,730
		Operating Partnership Units Outstanding	21,643	21,653	20,611	20,611
		Common Shares and Operating Partnership Units Outstanding	89,528	89,598	88,550	88,341
		Market Price per Common Share as of Last Day of Quarter	$10.24	$11.68	$11.81	$11.49
		Common Equity Capitalization	916,766	1,046,505	1,045,776	1,015,038
		Preferred Equity Capitalization	171,085	171,085	171,085	171,085
		Total Equity Capitalization	1,087,851	1,217,590	1,216,861	1,186,123
		Total Debt(1)	1,326,987	1,269,586	1,117,424	1,073,132
		Total Capitalization	$2,414,838	$2,487,176	$2,334,285	$2,259,255
		STABILIZED PORTFOLIO OCCUPANCY(2)
		Retail	98.1%	98.2%	98.4%	97.9%
		Office	96.1%	96.2%	96.8%	96.7%
		Multifamily	96.0%	96.2%	95.7%	96.1%
		Weighted Average(3)	96.8%	97.0%	97.1%	97.0%
		STABILIZED PORTFOLIO
		Commercial
		Retail Portfolio
		Net Operating Income	$19,249	$18,412	$16,667	$16,474
		Number of Properties	38	39	38	38
		Net Rentable Square Feet	3,931,079	4,023,183	3,915,809	3,916,001
		Office Portfolio
		Net Operating Income	$13,890	$13,084	$12,376	$12,888
		Number of Properties	10	10	9	9
		Net Rentable Square Feet	2,310,645	2,310,645	2,111,924	2,111,923
		Multifamily
		Multifamily Portfolio
		Net Operating Income	$8,979	$9,148	$8,167	$8,327
		Number of Properties	11	11	10	10
		Units	2,492	2,492	2,254	2,254
(1)	Excludes GAAP adjustments.						6
(2)	See appendix for definitions.

(3) Total occupancy weighted by annualized base rent.

SUMMARY INCOME STATEMENT

$ IN THOUSANDS, EXCEPT PER SHARE

	Three Months Ended		Nine Months Ended
	9/30/2023		9/30/2022			9/30/2023		9/30/2022
Revenues			(Unaudited)
Rental Revenues	$62,913	$53,743		$179,082	$163,602
General Contracting and Real Estate Services Revenues	99,408	69,024		286,220	138,947
Interest Income	3,690		3,490			10,823		10,410
Total Revenues	166,011	126,257		476,125	312,959
Expenses
Rental Expenses	14,756	12,747		41,392	38,101
Real Estate Taxes	5,867	5,454		16,910	16,695
General Contracting and Real Estate Services Expenses	96,095	66,252		276,336	133,491
Depreciation and Amortization	22,462	17,527		60,808	54,865
Amortization of Right-of-Use Assets - Finance Leases	425	278		1,049	833
General & Administrative Expenses	4,286	3,854		13,786	12,179
Acquisition, Development & Other Pursuit Costs	-	-		18	37
Impairment Charges	5		-			107		333
Total Expenses	143,896		106,112			410,406		256,534
Gain on Real Estate Dispositions	227		33,931			738		53,424
Operating Income	22,342	54,076		66,457	109,849
Interest Expense	(15,444)	(10,345)		(41,375)	(28,747)
Loss on Extinguishment of Debt	-	(2,123)		-	(2,899)
Change in Fair Value of Derivatives and Other	2,466	782		5,024	7,512
Unrealized Credit Loss (Provision) Release	(694)	42		(871)	(858)
Other Income (Expense), Net	63		118			324		415
Income Before Taxes	8,733	42,550		29,559	85,272
Income Tax (Provision) Benefit	(310)		(181)			(834)		140
Net Income	$8,423		$42,369			$28,725		$85,412
Net Income Attributable to Noncontrolling Interest in Investment Entities	(193)	(5,583)		(616)	(5,811)
Preferred Stock Dividends	(2,887)		(2,887)			(8,661)		(8,661)
Net Income Attributable to AHH and OP Unitholders	$5,343		$33,899			$19,448		$70,940
Net Income per Diluted Share and Unit Attributable to AHH and OP Unitholders
$0.06	$0.38		$0.22	$0.80
Weighted Average Shares & OP Units - Diluted	89,589	88,341		88,908	88,143

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SUMMARY BALANCE SHEET

$ IN THOUSANDS

	As Of
	9/30/2023			12/31/2022
Assets	(Unaudited)
Real Estate Investments:
Income Producing Property	$2,089,170			$1,884,214
Held for Development	6,294			6,294
Construction in Progress	91,127			53,067
Accumulated Depreciation	(376,449)			(329,963)
Net Real Estate Investments	1,810,142			1,613,612
Cash and Cash Equivalents	32,662			48,139
Restricted Cash	2,343			3,726
Accounts Receivable, Net	43,800			39,186
Notes Receivable, Net	83,713			136,039
Construction Receivables, Including Retentions, Net	87,295			70,822
Construction Contract Costs and Estimated Earnings in Excess of Billings	440			342
Equity Method Investments	125,672			71,983
Operating Lease Right-of-Use Assets	23,152			23,350
Finance Lease Right-of-Use Assets	92,570			45,878
Acquired Lease Intangible Assets	127,020			103,870
Other Assets	104,275			85,363
Total Assets	$2,533,084			$2,242,310
Liabilities and Equity
Indebtedness, Net	$1,321,792			$1,068,261
Accounts Payable and Accrued Liabilities	31,604			26,839
Construction Payables, Including Retentions	108,107			93,472
Billings in Excess of Construction Contract Costs and Est. Earnings	23,127			17,515
Operating Lease Liabilities	31,573			31,677
Finance Lease Liabilities	93,419			46,477
Other Liabilities	56,818			54,055
Total Liabilities	1,666,440			1,338,296
Total Equity	866,644			904,014
Total Liabilities and Equity	$2,533,084			$2,242,310

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FFO, NORMALIZED FFO & AFFO(1)

$ IN THOUSANDS, EXCEPT PER SHARE

						Three Months Ended (Unaudited)		Nine Months Ended (Unaudited)
					9/30/2023	6/30/2023	3/31/2023	12/31/2022	9/30/2023	9/30/2022
Funds From Operations
Net Income Attributable to AHH and OP Unitholders			$5,343	$11,729	$2,376	$11,517	$19,448	$70,940
Net Income per Diluted Share				$0.06	$0.13	$0.03	$0.13	$0.22	$0.80
Depreciation and Amortization	(2)			22,239	19,655	18,245	17,887	60,139	54,084
Loss (Gain) on Dispositions of Operating Real Estate	(3)		-	-	-	11	-	(47,995)
Impairment of Real Estate Assets			-	-	-	-	-	201
FFO					$27,582	$31,384	$20,621	$29,415	$79,587	$77,230
FFO per Diluted Share					$0.31	$0.35	$0.23	$0.33	$0.90	$0.88
Normalized FFO
Acquisition, Development & Other Pursuit Costs			-	18	-	-	18	37
Loss on Extinguishment of Debt			-	-	-	475	-	2,899
Non-Cash GAAP Adjustments				1,124	(275)	456	128	1,305	1,823
Decrease (Increase) in Fair Value of Derivatives			(1,484)	(4,297)	3,807	(1,186)	(1,974)	(7,512)
Amortization of Interest Rate Derivatives on Designated Cash Flow Hedges	513	1,471	1,614	1,801	3,598	2,048
Normalized FFO					$27,735	$28,301	$26,498	$30,633	$82,534	$76,525
Normalized FFO per Diluted Share			$0.31	$0.32	$0.30	$0.35	$0.93	$0.87
Adjusted FFO
Non-Cash Stock Compensation			817	288	1,846	562	2,951	2,729
Acquisition, Development & Other Pursuit Costs			-	(18)	-	-	(18)	(37)
Tenant Improvements, Leasing Commissions, Lease Incentives	(4)	(2,249)	(2,725)	(3,460)	(1,875)	(8,434)	(4,754)
Property-Related Capital Expenditures			(2,678)	(1,700)	(3,724)	(3,441)	(8,102)	(8,448)
Adjustment for Real Estate Financing Modification and Exit Fees	-	(250)	(209)	(209)	(459)	(911)
Non-Cash Interest Expense	(5)				1,917	1,492	1,292	1,312	4,701	4,240
Cash Ground Rent Payment - Finance Lease			(993)	(822)	(668)	(653)	(2,483)	(1,905)
GAAP Adjustments					(1,843)	(2,008)	(1,459)	(1,718)	(5,310)	(4,874)
AFFO					$22,706	$22,558	$20,116	$24,611	$65,380	$62,565
AFFO per Diluted Share					$0.25	$0.25	$0.23	$0.28	$0.74	$0.71
Weighted Average Common Shares Outstanding			67,945	67,901	67,787	67,730	67,878	67,525
Weighted Average Operating Partnership Units Outstanding		21,644	20,823	20,611	20,611	21,030	20,618
Total Weighted Average Common Shares and OP Units Outstanding	89,589	88,724	88,398	88,341	88,908	88,143

(1)	See definitions in appendix.
(2)	Adjusted for the depreciation attributable to noncontrolling interests in consolidated investments.	9
(3)	Excludes gain/loss attributable to noncontrolling interests in consolidated investments and the disposition of non -operating parcels.
(4)	Excludes development, redevelopment, and first-generation space.

(5) Includes non-cash interest expense relating to indebtedness and interest expense on finance leases.

NET ASSET VALUE COMPONENT DATA

$ AND SHARES/UNITS IN THOUSANDS

				Stabilized Portfolio NOI (Cash)							Liabilities	(5)
							Three months ended 9/30/2023						As of 9/30/2023
					Retail		Office	(3)	Multifamily	Total	Mortgages and Notes Payable	(6)		$1,326,987
Stable Portfolio											Accounts Payable and Accrued Liabilities		31,604
Portfolio NOI	(1)(2)				$18,534		$13,356	$8,890		$40,780	Construction Payables, Including Retentions		108,107
Non-Stabilized Properties NOI				(172)			-	-		(172)	Other Liabilities	(6)			78,956
Signed Leases Not Yet Occupied or in Free Rent Period	466			920	84		1,470	Total Liabilities			$1,545,654
Stable Portfolio NOI				$18,828		$14,276	$8,974		$42,078
Intra-Quarter Transactions													Preferred Equity
Net Acquisitions				-			-	-		-					Liquidation Value
Net Dispositions				-			-	-		-	Series A Cumulative Redeemable Perpetual Preferred Stock	$171,085
Annualized				$75,311		$57,104	$35,896		$168,311
						(4)
					Non-Stabilized Portfolio
											As of 9/30/2023
Projects Under Development										$67,600
Properties in Lease Up										-
Development Opportunities										17,300
Unconsolidated JV Development										128,100
Total Non-Stabilized Portfolio										$213,000
		Third-Party General Contracting and Real Estate Services
											Trailing 12 Months
General Contracting Gross Profit										$12,129
					Non-Property Assets	(5)								Common Equity
											As of 9/30/2023					As of 9/30/2023
Cash and Restricted Cash										$35,005	Total Common Shares Outstanding		67,885
Accounts Receivable, Net										43,800	Total OP Units Outstanding			21,643
Notes Receivable and Other Notes Receivable	(6)							12,725	Total Common Shares & OP Units Outstanding		89,528
Real Estate Financing Investments	(6)									72,632
Construction Receivables, Including Retentions	(6)							87,478
Acquired Lease Intangible Assets										127,020
Other Assets / Costs in Excess of Earnings									104,715
Total Non-Property Assets										$483,375

(1)	Excludes expenses associated with the Company's in-house asset management division of $0.8M for the 3 months ended 9/30/2023.
(2)	Includes 100% of joint ventures.
(3)	Includes leases for spaces occupied by the Company which are eliminated for GAAP purposes.	10
(4)	Representative of costs incurred.
(5)	Excludes lease right-of-use assets and lease liabilities.

(6) Excludes GAAP adjustments.