Q2 2024 Armada Hoffler Properties Inc Earnings Call Transcript
Key Points
- Armada Hoffler Properties Inc (AHH) reported strong financial results for Q2 2024, with FFO of $0.25 per diluted share and normalized FFO of $0.34 per diluted share.
- The company achieved a 95% occupancy rate across its portfolio, indicating robust tenant demand.
- The construction division posted a record gross profit of $4.3 million, the highest in the company's history.
- The office segment showed impressive performance with a 24.3% GAAP spread and 9% same-store NOI growth.
- The company executed $85 million worth of term loans to pay down more expensive debt, maintaining its investment-grade credit rating.
- The company is not finding new development projects that are financially viable given the current economic conditions.
- Interest expenses are expected to increase in the second half of the year as developments come online and interest capitalization ceases.
- The construction gross profit is expected to decrease in the second half of the year, impacting overall earnings.
- The company faces challenges in major office markets, although it has managed to outperform its peers.
- There is a drag on earnings from less-than-stabilized developments, impacting the overall financial outlook.
Good morning, ladies and gentlemen, and welcome to the Armada Hoffler Second Quarter 2024 earnings conference call. At this time, all lines are in a listen only mode following the presentation, we will conduct a question and answer session. But anytime during this call you require immediate assistance, please press star zero for the operator, and this call is being recorded Thursday, August eighth, 2024. I would like to turn the call over to Chelsea Forrest, Vice President of Investor Relations. Please go ahead.
Good morning, and thank you for joining Armada Hoffler Second Quarter 2024 Earnings Conference Call and Webcast on the call this morning. In addition to myself is Lou Haddad, CEO, Matthew Barton, Smith, CFO, and Sean Tibbetts, President and CEO of the press release announcing our second quarter earnings, along with our supplemental package, were distributed yesterday afternoon. A replay of this call will be available shortly after the conclusion of the call through September eighth, 2024.
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