Armada Hoffler Properties Inc
For the period ended Jun 30, 2024. Filed Aug 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 7, 2024
AHRT$6.38-2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-10.
0001569187-24-000074
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0001569187-24-000119
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 224 previous paragraphs and 236 current paragraphs.
139 unchanged; 61 reworded; 34 added; 19 removed; 5 previous and 2 current paragraphs rearranged.
Tables are not compared: 18 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (34)
Current report
On July 10, 2024, the borrower paid off the Solis City Park II note receivable in full. We received a total of $25.8 million, which consisted of $20.6 million outstanding principal and $5.2 million of accrued interest.
Current report
On July 1, 2024, we signed an amendment to the operating agreement for the entity in which we own our real estate financing investment with respect to Solis Gainesville II to reduce the preference rate on the investment from 14% to 6% starting on January 1, 2025. We also received a call option to purchase a controlling interest in the entity that owns Gainesville II at fair market value during the period from January 1, 2025 to December 31, 2025, which option also gives us a right of first refusal to buy the property during the same period.
Current report
•Positive spreads on renewals across all segments:
Current report
▪Retail 5.8% (GAAP) and 2.9% (Cash)
Current report
▪Office 24.3% (GAAP) and 4.4% (Cash)
Current report
▪Multifamily 4.3% (GAAP and Cash)
Current report
•In July, realized $25.8 million in cash upon full redemption of the Solis City Park II preferred equity investment.
Current report
Retail segment NOI for the three months ended June 30, 2024 was materially consistent with the three months ended June 30, 2023. Retail segment NOI for the six months ended June 30, 2024 increased 6.6% compared to the six months ended June 30, 2023, primarily due to the acquisition of The Interlock Retail in May 2023.
Current report
Retail same store rental revenues, property expenses, and NOI for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Current report
Retail same store NOI for the three and six months ended June 30, 2024 was materially consistent with the three and six months ended June 30, 2023.
Current report
Office same store rental revenues, property expenses, and NOI for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Current report
Office same store NOI for the three and six months ended June 30, 2024 increased 9.0% and 3.7%, respectively, compared to the three and six months ended June 30, 2023, primarily due to increased occupancy at Wills Wharf, and increased reimbursable and parking income at the Constellation Office.
Current report
Multifamily segment NOI for the three and six months ended June 30, 2024 was materially consistent with the three and six months ended June 30, 2023.
Current report
Multifamily same store results for the three and six months ended June 30, 2024 and 2023 exclude Chandler Residences. Multifamily same store results for the six months ended June 30, 2024 and 2023 also exclude Chronicle Mill Apartments.
Current report
Multifamily same store rental revenues, property expenses and NOI for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Current report
Multifamily same store NOI for the three and six months ended June 30, 2024 was materially consistent with the three and six months ended June 30, 2023.
Current report
Real estate financing gross profit for the three months ended June 30, 2024 decreased 9.0% compared to the three months ended June 30, 2023, primarily due to higher interest expense allocable to the outstanding loans that offset the increased income for the 2024 period. Real estate financing gross profit for the six months ended June 30, 2024 was materially consistent with the six months ended June 30, 2023.
Current report
Rental revenues for the three and six months ended June 30, 2024 increased 5.5% and 7.7%, respectively, compared to the three and six months ended June 30, 2023 as follows (in thousands):
Current report
Retail rental revenues for the three and six months ended June 30, 2024 increased 3.2% and 7.3%, respectively, compared to the three and six months ended June 30, 2023, primarily as a result of the acquisition of The Interlock Retail in May 2023.
Current report
Multifamily rental revenues for the three and six months ended June 30, 2024 increased 1.9% and 3.7%, respectively, compared to the three and six months ended June 30, 2023, as a result of the commencement of operations at Chandler Residences.
Current report
Rental expenses for the three and six months ended June 30, 2024 increased 10.3% and 11.5%, respectively, compared to the three and six months ended June 30, 2023 as follows (in thousands):
Current report
Retail rental expenses for the three and six months ended June 30, 2024 increased 7.9% and 11.5%, respectively, compared to the three and six months ended June 30, 2023, primarily due to the acquisition of The Interlock Retail in May 2023.
Current report
Office rental expenses for the three and six months ended June 30, 2024 increased 11.7% and 15.1%, respectively, compared to the three and six months ended June 30, 2023, primarily as a result of the acquisition of The Interlock Office in May 2023 and increased occupancy at Constellation Office.
Current report
Multifamily rental expenses for the three and six months ended June 30, 2024 increased 10.9% and 6.9%, respectively, compared to the three and six months ended June 30, 2023, primarily as a result of the commencement of operations at Chandler Residences, as well as increases in utilities and repairs.
Current report
Real estate taxes for the three and six months ended June 30, 2024 increased 4.5% and 7.0%, respectively, compared to the three and six months ended June 30, 2023 as follows (in thousands):
Current report
Retail real estate taxes for the three months ended June 30, 2024 were materially consistent with the three months ended June 30, 2023. Retail real estate taxes for the six months ended June 30, 2024 increased 4.9% compared to the six months ended June 30, 2023, primarily due to the acquisition of The Interlock Retail in May 2023.
Current report
Office real estate taxes for the three and six months ended June 30, 2024 were materially consistent with the three and six months ended June 30, 2023.
Current report
Acquisition, development, and other pursuit costs for the three and six months ended June 30, 2024 increased compared to the three and six months ended June 30, 2023, primarily due to the write off of development costs related to an undeveloped land parcel in predevelopment located in Charlotte, North Carolina. Refer to Note 5 for more information.
Current report
Changes in other income, net for the three and six months ended June 30, 2024 were immaterial.
Current report
On June 14, 2024, the term loan facility commitment increased to $350.0 million as a result of an existing lender increasing its outstanding commitment.
Current report
On June 21, 2024, the M&T term loan facility commitment increased to $135.0 million as a result of adding a new lender to the facility.
Current report
(3) Debt principal payments and maturities exclude increased ground lease payments at 1405 Point which are classified as a note payable in our consolidated balance sheets.
Current report
During the six months ended June 30, 2024, net cash used in investing activities decreased $50.1 million compared to the six months ended June 30, 2023 primarily because of less capital used for development and less contributions with respect to equity method investments.
Current report
(2) The adjustment for gain on operating real estate dispositions for each of the three and six months ended June 30, 2023 excludes $0.5 million for the gain on the disposition of a non-operating parcel at Market at Mill Creek.
Removed paragraphs (19)
Previous report
•First quarter commercial lease renewal spreads increased 11.5% on a GAAP basis.
Previous report
•Announced the appointment of F. Blair Wimbush to the Company’s Board of Directors.
Previous report
Retail segment NOI for the three months ended March 31, 2024 increased 11.6% compared to the three months ended March 31, 2023, primarily due to the acquisition of The Interlock Retail in May 2023.
Previous report
Retail same store NOI for the three months ended March 31, 2024 was materially consistent compared to the three months ended March 31, 2023.
Previous report
Multifamily segment NOI for the three months ended March 31, 2024 increased 4.8% compared to the three months ended March 31, 2023 primarily due to higher occupancy and higher rental rates at Chronicle Mill Apartments.
Previous report
Multifamily same store results for the three months ended March 31, 2024 and 2023 exclude Chronicle Mill Apartments.
Previous report
Multifamily same store NOI for the three months ended March 31, 2024 was materially consistent compared to the three months ended March 31, 2023.
Previous report
Rental revenues for the three months ended March 31, 2024 increased 10.1% compared to the three months ended March 31, 2023 as follows (in thousands):
Previous report
Retail rental revenues for the three months ended March 31, 2024 increased 11.7% compared to the three months ended March 31, 2023, primarily as a result of the acquisition of The Interlock Retail in May 2023.
Previous report
Multifamily rental revenues for the three months ended March 31, 2024 increased 5.5% compared to the three months ended March 31, 2023, primarily as a result of higher occupancy and higher rental rates at Chronicle Mill Apartments.
Previous report
Rental expenses for the three months ended March 31, 2024 increased 12.7% compared to the three months ended March 31, 2023 as follows (in thousands):
Previous report
Retail rental expenses for the three months ended March 31, 2024 increased 15.6% compared to the three months ended March 31, 2023, primarily due to the acquisition of The Interlock Retail in May 2023.
Previous report
Office rental expenses for the three months ended March 31, 2024 increased 18.7% compared to the three months ended March 31, 2023, primarily as a result of the acquisition of The Interlock Office in May 2023.
Previous report
Multifamily rental expenses for the three months ended March 31, 2024 were materially consistent compared to the three months ended March 31, 2023.
Previous report
Real estate taxes for the three months ended March 31, 2024 increased 9.5% compared to the three months ended March 31, 2023 as follows (in thousands):
Previous report
Retail real estate taxes for the three months ended March 31, 2024 were materially consistent compared to the three months ended March 31, 2023.
Previous report
Office real estate taxes for the three months ended March 31, 2024 were materially consistent compared to the three months ended March 31, 2023.
Previous report
Other income (expense), net for the three months ended March 31, 2024 was materially consistent compared to the three months ended March 31, 2023.
Previous report
During the three months ended March 31, 2024, net cash used in investing activities decreased $10.4 million compared to the three months ended March 31, 2023 primarily because of less investment in development, including our equity method investments, and receipts on off-market interest rate derivatives, partially offset by higher investments in tenant and building improvements and increased funding in our real estate financing investments.
Reworded paragraphs (61)
Previous wording
We are a vertically-integrated, self-managed REIT 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. In addition to the ownership of our operating property portfolio, we develop and build properties for our own account and through joint ventures between us and unaffiliated partners and also invest in development projects through real estate financing arrangements. We also provide general construction and development services to third-party clients. Our construction and development experience includes mid- and high-rise office buildings, retail strip malls, retail power centers, multifamily apartment communities, hotels and conference centers, single- and multi-tenant industrial, distribution, and manufacturing facilities, educational, medical and special purpose facilities, government projects, parking garages, and mixed-use town centers.
Current wording
We are a vertically-integrated, self-managed REIT with over four decades of experience managing, building, acquiring, and developing high-quality retail, office, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to the ownership of our operating property portfolio, we develop and build properties for our own account and through joint ventures between us and unaffiliated partners and also invest in development projects through real estate financing arrangements. We also provide general construction and development services to third-party clients. Our construction and development experience includes mid- and high-rise office buildings, retail strip malls, retail power centers, multifamily apartment communities, hotels and conference centers, single- and multi-tenant industrial, distribution, and manufacturing facilities, educational, medical and special purpose facilities, government projects, parking garages, and mixed-use town centers.
Previous wording
On March 23, 2022, we entered into a $20.6 million preferred equity investment for the development of a multifamily property located in Charlotte, North Carolina. The investment has economic terms consistent with a note receivable, including a mandatory redemption or maturity on April 28, 2026, and it is accounted for as a note receivable. Our investment bears interest at a rate of 13%, compounded annually, with a minimum preferred return of $5.7 million, which represents approximately 24 months of interest. Our investment also earns an equity fee on our commitment of $0.2 million, which is amortized through the date of redemption.
Current wording
On March 23, 2022, we entered into a $20.6 million preferred equity investment for the development of a multifamily property located in Charlotte, North Carolina. The investment has economic terms consistent with a note receivable, including a mandatory redemption or maturity on April 28, 2026, and it is accounted for as a note receivable. Our investment bears interest at a rate of 13%, compounded annually, with a minimum preferred return of $5.2 million, which represents approximately 24 months of interest. Our investment also earns an equity fee on our commitment of $0.2 million, which is amortized through the date of redemption.
Previous wording
The balance on the Solis City Park II note was $25.1 million as of March 31, 2024, which includes $4.6 million of cumulative accrued interest and a discount of $0.1 million due to unamortized equity fees. During the three months ended March 31, 2024, we recognized $0.7 million of interest income on the note. As of March 31, 2024, this note was fully funded and the development property was approximately 73% leased.
Current wording
The balance on the Solis City Park II note was $25.7 million as of June 30, 2024, which includes $5.2 million of cumulative accrued interest and a discount of $0.1 million due to unamortized equity fees. During the three and six months ended June 30, 2024, we recognized $0.6 million and $1.4 million, respectively, of interest income on the note. As of June 30, 2024, this note was fully funded.
Previous wording
On October 3, 2022, we entered into a $19.6 million preferred equity investment for the development of a multifamily property located in Gainesville, Georgia (Solis Gainesville II). This project is located nearby our recently completed multifamily development project in Gainesville, The Everly. The preferred equity investment has economic and other terms consistent with a note receivable, including a mandatory redemption or maturity on October 3, 2026, and it is accounted for as a note receivable. Our investment bears interest at a rate of 14% effective through the first 24 months of the investment. Beginning on October 3, 2024, the investment will bear interest at a rate of 10% for 12 months. On October 3, 2025, the investment will again bear interest at a rate of 14% through maturity. Additionally, the investment earns an unused commitment fee of 10% on the unfunded portion of the investment's maximum loan commitment, effective January 1, 2023, and an equity fee on our commitment of $0.3 million, which is amortized through the date of redemption. Both the interest and unused commitment fee compound annually. The preferred equity investment is subject to a minimum interest guarantee of $5.9 million over the life of the investment, which represents approximately 24 months of interest.
Current wording
On October 3, 2022, we entered into a $19.6 million preferred equity investment for the development of a multifamily property located in Gainesville, Georgia (Solis Gainesville II). This project is located nearby our recently completed multifamily development project in Gainesville, The Everly. The preferred equity investment has economic and other terms consistent with a note receivable, including a mandatory redemption or maturity on October 3, 2026, and it is accounted for as a note receivable. Our investment bears interest at a rate of 14.0% effective through the first 24 months of the investment. Beginning on October 3, 2024, the investment will bear interest at a rate of 10.0% for 12 months. On October 3, 2025, the investment will again bear interest at a rate of 14.0% through maturity. Additionally, the investment earns an unused commitment fee of 10.0% on the unfunded portion of the investment's maximum loan commitment, effective January 1, 2023, and an equity fee on our commitment of $0.3 million, which is amortized through the date of redemption. Both the interest and unused commitment fee compound annually. The preferred equity investment is subject to a minimum interest guarantee of $5.9 million over the life of the investment, which represents approximately 24 months of interest.
Previous wording
The balance on the Solis Gainesville II note was $23.1 million as of March 31, 2024, which includes $3.6 million of cumulative accrued interest and unused commitment fees as well as a discount of $0.2 million due to unamortized equity fees. During the three months ended March 31, 2024, we recognized $0.8 million of interest income on the note. As of March 31, 2024, this note was fully funded.
Current wording
The balance on the Solis Gainesville II note was $23.8 million as of June 30, 2024, which includes $4.0 million of cumulative accrued interest, $0.4 million of unused commitment fees and a discount of $0.2 million due to unamortized equity fees. During the three and six months ended June 30, 2024, we recognized $0.8 million and $1.6 million, respectively, of interest income on the note. As of June 30, 2024, this note was fully funded and the development property was approximately 35% leased.
Previous wording
The balance on the Solis Kennesaw note was $26.5 million as of March 31, 2024, which includes $3.9 million of cumulative accrued interest and unused commitment fees as well as a discount of $0.4 million due to unamortized equity fees. During the three months ended March 31, 2024, we recognized $1.2 million of interest income on the note.
Current wording
The balance on the Solis Kennesaw note was $34.8 million as of June 30, 2024, which includes $2.4 million of cumulative accrued interest, $2.8 million of unused commitment fees and a discount of $0.4 million due to unamortized equity fees. During the three and six months ended June 30, 2024, we recognized $1.3 million and $2.6 million, respectively, of interest income on the note.
Previous wording
On July 26, 2023, we entered into a $28.4 million preferred equity investment for the development of a multifamily property located in Peachtree Corners, Georgia ("Solis Peachtree Corners"). The preferred equity investment has economic and other terms consistent with a note receivable, including a mandatory redemption feature effective on October 27, 2027. Our investment bears interest at a rate of 15.0% for the first 27 months. Beginning on November 1, 2025, the investment will bear interest at a rate of 9.0% for 12 months. On November 1, 2026, the investment will again bear interest at a rate of 15.0% through maturity. The interest compounds annually. We also earn an unused commitment fee of 10.0% on the unfunded portion of the investment's maximum loan commitment, which also compounds annually, and an equity fee on our commitment of $0.4 million which is amortized through the date of redemption. The preferred equity investment is subject to a minimum interest guarantee of $12.0 million over the life of the investment, which represents approximately 30 months of interest.
Current wording
On July 26, 2023, we entered into a $28.4 million preferred equity investment for the development of a multifamily property located in Peachtree Corners, Georgia ("Solis Peachtree Corners"). The preferred equity investment has economic and other terms consistent with a note receivable, including a mandatory redemption feature effective on October 27, 2027, and it is accounted for as a note receivable. Our investment bears interest at a rate of 15.0% for the first 27 months. Beginning on November 1, 2025, the investment will bear interest at a rate of 9.0% for 12 months. On November 1, 2026, the investment will again bear interest at a rate of 15.0% through maturity. The interest compounds annually. We also earn an unused commitment fee of 10.0% on the unfunded portion of the investment's maximum loan commitment, which also compounds annually, and an equity fee on our commitment of $0.4 million which is amortized through the date of redemption. The preferred equity investment is subject to a minimum interest guarantee of $12.0 million over the life of the investment, which represents approximately 30 months of interest.
Previous wording
The balance on the Solis Peachtree Corners note was $13.8 million as of March 31, 2024, which includes $2.3 million of cumulative accrued interest and unused commitment fees as well as a discount of $0.4 million due to unamortized equity fees. During the three months ended March 31, 2024, we recognized $0.9 million of interest income on the note.
Current wording
The balance on the Solis Peachtree Corners note was $18.4 million as of June 30, 2024, which includes $1.5 million of cumulative accrued interest, $1.7 million of unused commitment fees and a discount of $0.3 million due to unamortized equity fees. During the three and six months ended June 30, 2024, we recognized $0.9 million and $1.8 million, respectively, of interest income on the note.
Previous wording
On July 26, 2023, we entered into a $9.2 million preferred equity investment for the development of a multifamily property located in Chesapeake, Virginia ("The Allure at Edinburgh"). The preferred equity investment has economic and other terms consistent with a note receivable, including a mandatory redemption feature effective on January 16, 2028. Our investment bears interest at a rate of 15.0%, which does not compound. Upon The Allure at Edinburgh obtaining a certificate of occupancy, the investment will bear interest at a rate of 10.0%. The common equity partner in the development property holds an option to sell the property to us at a predetermined amount if certain conditions are met. We also hold an option to purchase the property at any time prior to maturity of the preferred equity investment, and at the same predetermined amount as the common equity partner's option to sell.
Current wording
On July 26, 2023, we entered into a $9.2 million preferred equity investment for the development of a multifamily property located in Chesapeake, Virginia ("The Allure at Edinburgh"). The preferred equity investment has economic and other terms consistent with a note receivable, including a mandatory redemption feature effective on January 16, 2028, and it is accounted for as a note receivable. Our investment bears interest at a rate of 15.0%, which does not compound. Upon The Allure at Edinburgh obtaining a certificate of occupancy, the investment will bear interest at a rate of 10.0%. The common equity partner in the development property holds an option to sell the property to us at a predetermined amount if certain conditions are met. We also hold an option to purchase the property at any time prior to maturity of the preferred equity investment, and at the same predetermined amount as the common equity partner's option to sell.
Previous wording
The balance on The Allure at Edinburgh note was $10.2 million as of March 31, 2024, which includes $0.9 million of cumulative accrued interest. During the three months ended March 31, 2024, we recognized $0.3 million of interest income on the note. As of March 31, 2024, this note was fully funded.
Current wording
The balance on The Allure at Edinburgh note was $10.5 million as of June 30, 2024, which includes $1.3 million of cumulative accrued interest. During the three and six months ended June 30, 2024, we recognized $0.3 million and $0.7 million, respectively, of interest income on the note. As of June 30, 2024, this note was fully funded.
Previous wording
First Quarter 2024 and Recent Highlights
Current wording
Second Quarter 2024 and Recent Highlights
Previous wording
•Net income attributable to common stockholders and holders ("OP Unitholders") of units of limited partnership interest in the Operating Partnership ("OP Units") of $14.8 million, or $0.17 per diluted share, compared to $2.4 million, or $0.03 per diluted share, for the three months ended March 31, 2023.
Current wording
•Net income attributable to common stockholders and holders ("OP Unitholders") of units of limited partnership interest in the Operating Partnership ("OP Units") of $0.4 million, or $0.00 per diluted share, compared to $11.7 million, or $0.13 per diluted share, for the three months ended June 30, 2023.
Previous wording
•Funds from operations attributable to common stockholders and OP Unitholders ("FFO") of $35.0 million, or $0.40 per diluted share, compared to $20.6 million, or $0.23 per diluted share, for the three months ended March 31, 2023. See "Non-GAAP Financial Measures."
Current wording
•Funds from operations attributable to common stockholders and OP Unitholders ("FFO") of $22.4 million, or $0.25 per diluted share, compared to $31.4 million, or $0.35 per diluted share, for the three months ended June 30, 2023. See "Non-GAAP Financial Measures."
Previous wording
•Normalized funds from operations attributable to common stockholders and OP Unitholders ("Normalized FFO") of $29.4 million, or $0.33 per diluted share, compared to $26.5 million, or $0.30 per diluted share, for the three months ended March 31, 2023. See "Non-GAAP Financial Measures."
Current wording
•Normalized funds from operations attributable to common stockholders and OP Unitholders ("Normalized FFO") of $30.2 million, or $0.34 per diluted share, compared to $28.3 million, or $0.32 per diluted share, for the three months ended June 30, 2023. See "Non-GAAP Financial Measures."
Previous wording
•As of March 31, 2024, weighted average portfolio occupancy was 94.7%. Retail occupancy was 95.4%, office occupancy was 93.6%, and multifamily occupancy was 95.1%.
Current wording
•As of June 30, 2024, weighted average stabilized portfolio occupancy was 94.9%. Retail occupancy was 95.4%, office occupancy was 94.3%, and multifamily occupancy was 94.9%.
Previous wording
•Executed 21 lease renewals and 3 new leases during the first quarter for an aggregate of 115,549 of net rentable square feet.
Current wording
•Executed 23 lease renewals and 9 new leases during the second quarter for an aggregate of 248,714 of net rentable square feet.
Previous wording
•Same Store NOI increased 0.4% on a GAAP basis compared to the quarter ended March 31, 2023.
Current wording
•Same Store NOI increased 0.6% on a GAAP basis compared to the quarter ended June 30, 2023.
Previous wording
•Third-party construction backlog as of March 31, 2024 was $343.4 million and construction gross profit for the first quarter was $4.1 million.
Current wording
•Third-party construction backlog as of June 30, 2024 was $302.9 million and construction gross profit for the second quarter was $4.3 million.
Previous wording
•During the first quarter of 2024, unrealized gains on non-designated interest rate derivatives that positively affected FFO were $6.5 million. As of March 31, 2024, the value of the Company’s entire interest rate derivative portfolio, net of unrealized gains, was $35.0 million. These gains are excluded from normalized FFO.
Current wording
•During the second quarter of 2024, unrealized losses on non-designated interest rate derivatives that negatively affected FFO were $2.0 million. As of June 30, 2024, the value of the Company’s entire interest rate derivative portfolio, net of unrealized losses, was $32.5 million. These losses are excluded from normalized FFO.
Previous wording
Since our Annual Report on Form 10-K for the year ended December 31, 2023, we retrospectively reclassified certain components of mixed-use properties between the retail, office, and multifamily real estate segments in order to align the components of those properties with their tenant composition. As a result, NOI for the three months ended March 31, 2023 increased $0.4 million and less than $0.1 million for the retail and office real estate segments, respectively, and decreased $0.4 million for the multifamily real estate segment. These reclassifications had no effect on total property NOI as previously reported. These reclassifications also had no impact on our general contracting and real estate services or real estate financing segments.
Current wording
Since our Annual Report on Form 10-K for the year ended December 31, 2023, we retrospectively reclassified certain components of mixed-use properties between the retail, office, and multifamily real estate segments in order to align the components of those properties with their tenant composition. As a result, NOI for the three months ended June 30, 2023 increased $0.5 million and less than $0.1 million for the retail and office real estate segments, respectively, and decreased $0.5 million for the multifamily real estate segment. NOI for the six months ended June 30, 2023 increased $0.8 million and less than $0.1 for the retail and office real estate segments, respectively, and decreased $0.9 million for the multifamily real estate segment. These reclassifications had no effect on total property NOI as previously reported. These reclassifications also had no impact on our general contracting and real estate services or real estate financing segments.
Previous wording
Retail rental revenues, property expenses, and NOI for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Current wording
Retail rental revenues, property expenses, and NOI for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Previous wording
Retail same store results for the three months ended March 31, 2024 and 2023 exclude The Interlock Retail and Chronicle Mill Retail, as well as Columbus Village II due to redevelopment.
Current wording
Retail same store results for the three and six months ended June 30, 2024 and 2023 exclude The Interlock Retail, Columbus Village II, and Southern Post Retail due to redevelopment. Retail same store results for the six months ended June 30, 2024 and 2023 also exclude Chronicle Mill Retail.
Previous wording
Office rental revenues, property expenses, and NOI for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Current wording
Office rental revenues, property expenses, and NOI for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Previous wording
Office segment NOI for the three months ended March 31, 2024 increased 9.1% compared to the three months ended March 31, 2023, primarily due to the acquisition of The Interlock Office in May 2023, increased occupancy at Wills Wharf, and increased parking income at the Constellation Office, which was partially offset by decreased occupancy at Thames Street.
Current wording
Office segment NOI for the three and six months ended June 30, 2024 increased 12.5% and 10.8%, respectively, compared to the three and six months ended June 30, 2023, primarily due to the acquisition of The Interlock Office in May 2023, increased occupancy at Wills Wharf, and increased parking income at the Constellation Office.
Previous wording
Office same store results for the three months ended March 31, 2024 and 2023 exclude The Interlock Office and Chronicle Mill Office.
Current wording
Office same store results for the three and six months ended June 30, 2024 and 2023 exclude The Interlock Office and Southern Post Office. Office same store results for the six months ended June 30, 2024 and 2023 also exclude Chronicle Mill Office.
Previous wording
Multifamily rental revenues, property expenses, and NOI for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Current wording
Multifamily rental revenues, property expenses, and NOI for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Previous wording
General contracting and real estate services revenues, expenses, and gross profit for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Current wording
General contracting and real estate services revenues, expenses, and gross profit for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Previous wording
(1)50% and 90% of gross profit attributable to our T. Rowe Price Global HQ and Allied | Harbor Point development projects, respectively, is not reflected within general contracting and real estate services revenues due to elimination. The Company is still entitled to receive cash proceeds in relation to the eliminated amounts. Prior to any gross profit eliminations attributable to these projects, operating margin for the three months ended March 31, 2024 and 2023 was 3.5% and 4.0%, respectively.
Current wording
(1)50% and 90% of gross profit attributable to our T. Rowe Price Global HQ and Allied | Harbor Point development projects, respectively, is not reflected within general contracting and real estate services revenues due to elimination. The Company is still entitled to receive cash proceeds in relation to the eliminated amounts. Prior to any gross profit eliminations attributable to these projects, operating margin was 4.0% and 3.7% for the three and six months ended June 30, 2024, respectively, and 3.9% and 4.0% for the three and six months ended June 30, 2023, respectively.
Previous wording
General contracting and real estate services segment gross profit for the three months ended March 31, 2024 increased $1.0 million compared to the three months ended March 31, 2023, primarily due to an increase in work performed in the execution of our backlog and the recognition of savings from unused contingencies for certain contracts.
Current wording
General contracting and real estate services segment gross profit for the three and six months ended June 30, 2024 increased $0.8 million and $1.8 million, respectively, compared to the three and six months ended June 30, 2023, primarily due to an increase in work performed in the execution of our backlog and the recognition of savings from unused contingencies for certain contracts.
Previous wording
The changes in third party construction backlog for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Current wording
The changes in third party construction backlog for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Previous wording
As of March 31, 2024, we had $153.4 million in the backlog relating to the Harbor Point Parcel 3 and Harbor Point Parcel 4 developments in Baltimore.
Current wording
As of June 30, 2024, we had $100.3 million in the backlog relating to the Harbor Point Parcel 3 and Harbor Point Parcel 4 developments in Baltimore.
Previous wording
Real estate financing interest income, interest expense, and gross profit for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Current wording
Real estate financing interest income, interest expense, and gross profit for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Previous wording
The following table summarizes the results of operations for the three months ended March 31, 2024 and 2023 (unaudited, in thousands):
Current wording
The following table summarizes the results of operations for the three and six months ended June 30, 2024 and 2023 (unaudited, in thousands):
Previous wording
Office rental revenues for the three months ended March 31, 2024 increased 11.3% compared to the three months ended March 31, 2023, primarily as a result of the acquisition of The Interlock Office in May 2023, increased occupancy at Wills Wharf, and increased parking income at the Constellation Office, which was partially offset by decreased occupancy at Thames Street.
Current wording
Office rental revenues for the three and six months ended June 30, 2024 increased 10.9% and 11.1%, respectively, compared to the three and six months ended June 30, 2023, primarily as a result of the acquisition of The Interlock Office in May 2023, increased occupancy at Wills Wharf, and increased reimbursable and parking income at the Constellation Office.
Previous wording
General contracting and real estate services revenues for the three months ended March 31, 2024 increased $42.7 million compared to the three months ended March 31, 2023 due to an increase in work performed in the execution of our backlog and the recognition of savings from unused contingencies for certain contracts.
Current wording
General contracting and real estate services revenues for the three and six months ended June 30, 2024 increased $14.3 million and $57.0 million, respectively, compared to the three and six months ended June 30, 2023 due to an increase in work performed in the execution of our backlog and the recognition of savings from unused contingencies for certain contracts.
Previous wording
Interest income for the three months ended March 31, 2024 increased 24.4% compared to the three months ended March 31, 2023, primarily due to interest earned on unused commitments on real estate financing investments and higher interest bearing cash deposits.
Current wording
Interest income for the three and six months ended June 30, 2024 increased 35.7% and 29.8%, respectively, compared to the three and six months ended June 30, 2023, primarily due to interest earned on unused commitments on real estate financing investments and higher interest bearing cash deposits.
Previous wording
Multifamily real estate taxes for the three months ended March 31, 2024 increased 22.3% compared to the three months ended March 31, 2023, primarily due to increased tax assessments across the multifamily portfolio.
Current wording
Multifamily real estate taxes for the three and six months ended June 30, 2024 increased 17.4% and 19.7%, respectively, compared to the three and six months ended June 30, 2023, primarily due to increased tax assessments across the multifamily portfolio and the commencement of operations at Chandler Residences.
Previous wording
General contracting and real estate services expenses for the three months ended March 31, 2024 increased $41.7 million compared to the three months ended March 31, 2023 due to an increase in work performed in the execution of our backlog.
Current wording
General contracting and real estate services expenses for the three and six months ended June 30, 2024 increased $13.4 million and $55.2 million, respectively, compared to the three and six months ended June 30, 2023 due to an increase in work performed in the execution of our backlog.
Previous wording
Depreciation and amortization for the three months ended March 31, 2024 increased 10.7% compared to the three months ended March 31, 2023, primarily due to the acquisition of The Interlock in May 2023.
Current wording
Depreciation and amortization for the three and six months ended June 30, 2024 increased 4.6% and 7.5%, respectively, compared to the three and six months ended June 30, 2023, primarily due to the acquisition of The Interlock in May 2023.
Previous wording
Amortization of right-of-use assets - finance leases for the three months ended March 31, 2024 increased 42.6% compared to the three months ended March 31, 2023, primarily due to the ground lease assumed in connection with the acquisition of The Interlock in May 2023.
Current wording
Amortization of right-of-use assets - finance leases for the three and six months ended June 30, 2024 increased 13.5% and 26.4%, respectively, compared to the three and six months ended June 30, 2023, primarily due to the ground lease assumed in connection with the acquisition of The Interlock in May 2023.
Showing the first 40 of 61 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
The Credit Agreement limits our ability to pay cash dividends if a default has occurred and is continuing or would result therefrom. However, if certain defaults or events of default exist, we may pay cash dividends to the extent necessary to (i)
Current report — wording carried from elsewhere
(g) Designated as a cash flow hedge.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Retail same store rental revenues, property expenses, and NOI for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Previous report — wording carried elsewhere
Office same store rental revenues, property expenses, and NOI for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Previous report — wording carried elsewhere
Office same store NOI for the three months ended March 31, 2024 was materially consistent with the three months ended March 31, 2023.
Previous report — wording carried elsewhere
Multifamily same store rental revenues, property expenses and NOI for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Previous report — wording carried elsewhere
Real estate financing gross profit for the three months ended March 31, 2024 increased 9.4% compared to the three months ended March 31, 2023, primarily due to interest earned on unused commitments.