Armada Hoffler Properties, Inc.
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
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.
Sep 30, 2025 · Filed Nov 5, 2025
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 2025-06-30; filed 2025-08-07.
0001569187-25-000159
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001569187-25-000180
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 245 previous paragraphs and 267 current paragraphs.
163 unchanged; 56 reworded; 46 added; 24 removed; 2 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 (46)
Current report
Acquisitions
Current report
▪Retail 5.7% (GAAP) and 6.5% (Cash)
Current report
▪Office 21.6% (GAAP) and 8.9% (Cash)
Current report
▪Multifamily 2.3% (GAAP and Cash)
Current report
•On October 16, 2025, we announced that our Board of Directors unanimously appointed Shawn J. Tibbetts as Chairman of the Board, effective January 1, 2026. This appointment represents the final step in the succession plan initiated in 2024. Mr. Tibbetts will continue to serve as President and Chief Executive Officer, and Louis S. Haddad will continue to serve as a director on our Board of Directors.
Current report
Retail rental revenues, property expenses, and NOI for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):
Current report
Retail segment NOI for the three months ended September 30, 2025 was materially consistent with the three months ended September 30, 2024. Retail segment NOI for the nine months ended September 30, 2025 decreased $1.5 million, or
Current report
Retail same store rental revenues, property expenses, and NOI for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):
Current report
Retail same store NOI for the three and nine months ended September 30, 2025 was materially consistent with the three and nine months ended September 30, 2024.
Current report
Office rental revenues, property expenses, and NOI for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):
Current report
Office segment NOI for thethree months ended September 30, 2025 decreased $2.3 million or 11.8%, primarily due to the receipt of a termination fee from one of our tenants at Wills Wharf in the third quarter of 2024, partially offset by the receipt of assignment fees from one of our tenants at The Interlock Office in the third quarter of 2025. Office segment NOI for thenine months ended September 30, 2025 was materially consistent with thenine months ended September 30, 2024, due to the receipt of a termination fee from one of our tenants at Wills Wharf in the third quarter of 2024, offset by the receipt of assignment fees from one of our tenants at The Interlock Office in the third quarter of 2025, the commencement of operations at Southern Post Office, and the consolidation of Allied | Harbor Point Office Garage.
Current report
Office same store rental revenues, property expenses, and NOI for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):
Current report
Multifamily rental revenues, property expenses, and NOI for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):
Current report
Multifamily same store rental revenues, property expenses and NOI for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):
Current report
Multifamily same store NOI for the three and nine months ended September 30, 2025 was materially consistent with the three and nine months ended September 30, 2024.
Current report
(2)The operating margin percentage for the three months ended September 30, 2025 is higher than typical levels due to the recognition of cost savings on a third-party project completed during the quarter.
Current report
Rental revenues for the three and nine months ended September 30, 2025 increased $0.1 million and $3.9 million, or 0.2% and 2.0%, respectively, as compared to the three and nine months ended September 30, 2024 as follows (in thousands):
Current report
Office rental revenues for the three months ended September 30, 2025 decreased $1.8 million, or 6.3%, as compared to the three months ended September 30, 2024, primarily due to the receipt of termination fees from one of our tenants at Wills Wharf in the third quarter of 2024, partially offset by the receipt of assignment fees from one of our tenants at The Interlock Office in the third quarter of 2025. Office rental revenues for the nine months ended September 30, 2025 were materially consistent with the three and nine months ended September 30, 2024, due to the receipt of a termination fee from one of our tenants at Wills Wharf in the third quarter of 2024, offset by the receipt of assignment fees from one of our tenants at The Interlock Office in the third quarter of 2025, the commencement of operations at Southern Post Office, and the consolidation of Allied | Harbor Point Office Garage.
Current report
Multifamily rental revenues for the three and nine months ended September 30, 2025 increased $2.6 million and $5.1 million, or 17.9% and 11.7%, respectively, as compared to the three and nine months ended September 30, 2024, primarily due to the commencement of operations at Chandler Residences in the third quarter of 2024 and stabilization in the second quarter of 2025, and the consolidation of Allied | Harbor Point in the second quarter of 2025.
Current report
Retail rental expenses for the three months ended September 30, 2025 decreased $0.8 million, or 14.9%, compared to the three months ended September 30, 2024 primarily due to the disposition of Market at Mill Creek and Nexton Square and decreased expenses at The Interlock Retail, partially offset by the commencement of operations at Southern Post Retail. Retail rental expenses for the nine months ended September 30, 2025 decreased $1.0 million, or 7.4%, compared to the nine months ended September 30, 2024, primarily due to the disposition of Market at Mill Creek and Nexton Square and decreased expenses at The Interlock Retail, partially offset by the commencement of operations at Southern Post Retail and increased repairs and maintenance across the portfolio.
Current report
Multifamily rental expenses for the three and nine months ended September 30, 2025 increased $1.1 million and $2.3 million, or 21.4% and 15.7%, respectively, as compared to the three and nine months ended September 30, 2024, primarily due to increased utilities at the Harbor Point properties as well as the commencement of operations at Chandler Residences in the third quarter of 2024 and the consolidation of Allied | Harbor Point in the second quarter of 2025.
Current report
Retail real estate taxes for the three and nine months ended September 30, 2025 decreased $0.1 million and $0.4 million, or 3.7% and 4.9%, respectively, as compared to the three and nine months ended September 30, 2024, primarily due to a decrease of $0.2 million and $0.7 million from the dispositions of Market at Mill Creek and Nexton Square, respectively, partially offset by commencement of operations at Southern Post Retail and increased assessments at select properties within the portfolio.
Current report
Office real estate taxes for the three months ended September 30, 2025 decreased $0.1 million, or 4.8%, as compared to the three months ended September 30, 2024, primarily due to a decrease in the assessment at One City Center Office, partially offset by an increase in the assessment at Constellation Office and the consolidation of Allied | Office Garage. Office real estate taxes for the nine months ended September 30, 2025 increased $0.5 million, or 7.5% as compared to the nine months ended September 30, 2024, primarily due to the consolidation of Allied | Office Garage and the commencement of operations at Southern Post Office, partially offset by a decrease in the assessment at One City Center Office.
Current report
Multifamily real estate taxes for the three and nine months ended September 30, 2025 increased $0.2 million and $0.5 million, or 12.4% and 13.3%, respectively, as compared to the three and nine months ended September 30, 2024, primarily due to the commencement of operations at Chandler Residences in the third quarter of 2024 and the consolidation of Allied | Harbor Point in the second quarter of 2025. Excluding these assets, multifamily real estate taxes for the three and nine months ended September 30, 2025 was materially consistent with the three and nine months ended September 30, 2024.
Current report
General contracting and real estate services expenses for the three and nine months ended September 30, 2025 decreased $89.9 million and $249.4 million, or 81.0% and 72.0%, respectively, as compared to the three and nine months ended September 30, 2024 primarily due to the higher volume of work performed in 2024.
Current report
Interest expense for the three months ended September 30, 2025 increased 6% as compared to the three months ended September 30, 2024 due to increased borrowing to fund the Solis North Creek investment. Interest expense for the nine months ended September 30, 2025 was materially consistent with the nine months ended September 30, 2024.
Current report
Private Placement Notes
Current report
The Notes bear interest on the outstanding principal balance at the stated rates per annum from the date of issuance, payable semiannually on January 22 and July 22 of each year, commencing January 22, 2026 until such principal becomes due and payable. The Notes are the senior unsecured obligations of the Operating Partnership and rank at least pari passu in right of payment with all other unsecured senior indebtedness of the Operating Partnership. The Operating Partnership’s obligations under the Notes are guaranteed by us and certain of our subsidiaries that are not otherwise prohibited from providing such guaranty.
Current report
The Note Purchase Agreement contains customary representations and warranties. Under the Note Purchase Agreement, we are also subject to a number of financial covenants, affirmative covenants, and other restrictions, including the following, which are subject to a “most favored lender” provision, which automatically incorporates any changes to corresponding covenants under the Credit Agreement into the Note Purchase Agreement:
Current report
•Ratio of Secured Recourse Debt (as defined in the Note Purchase Agreement), excluding the Notes if they become Secured Indebtedness (as defined in the Note Purchase Agreement)), to total asset value of not more than 20%;
Current report
•Maintenance of a minimum of at least 15 Unencumbered Properties (as defined in the Note Purchase Agreement) with an Unencumbered Asset Value (as defined in the Note Purchase Agreement) of not less than $500.0 million at any time; and
Current report
•Minimum Occupancy Rate (as defined in the Note Purchase Agreement) for all Unencumbered Properties of not less than 80% at any time.
Current report
The following financial covenants are not subject to the most favored lender provision:
Current report
•Total leverage ratio of not more than 60% (or 65% for the two consecutive quarters following any acquisition with a purchase price of at least $100.0 million, but only up to two times during the term of the Note Purchase Agreement;
Current report
•Ratio of adjusted EBITDA (as defined in the Note Purchase Agreement) to Fixed Charges (as defined in the Note Purchase Agreement) of not less than 1.5 to 1.0;
Current report
•Tangible Net Worth (as defined in the Purchase Agreement) of not less than the sum of (i) $825.2 million and (ii) an amount equal to 75% of the net equity proceeds received by us after June 30, 2022;
Current report
•Ratio of Secured Indebtedness, excluding the Notes if they become Secured Indebtedness, to total asset value of not more than 40%;
Current report
•Total Unsecured Leverage Ratio (as defined in the Note Purchase Agreement) of not more than 60% (or 65% for the two consecutive quarters following any acquisition with a purchase price of at least $100.0 million, but only up to two times during the term of the Note Purchase Agreement);
Current report
•Unencumbered Interest Coverage Ratio (as defined in the Note Purchase Agreement) of not less than 1.75 to 1.0;
Current report
The Note Purchase Agreement also restricts the amount of capital that we can invest in specific categories of assets, such as unimproved land holdings, development properties, notes receivable, mortgages, mezzanine loans and unconsolidated affiliates while the Notes are outstanding.
Showing the first 40 of 46 passages. Open the source sections for the rest.
Removed paragraphs (24)
Previous report
▪Retail 10.8% (GAAP) and 5.5% (Cash)
Previous report
▪Office 11.7% (GAAP) and 5.5% (Cash)
Previous report
▪Multifamily 3.8% (GAAP and Cash)
Previous report
Retail rental revenues, property expenses, and NOI for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):
Previous report
Retail same store rental revenues, property expenses, and NOI for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):
Previous report
Retail same store NOI for the three and six months ended June 30, 2025 was materially consistent with the three and six months ended June 30,2024.
Previous report
Office rental revenues, property expenses, and NOI for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):
Previous report
Office segment NOI for the three and six months ended June 30, 2025 increased $0.7 million and $2.4 million, or 4.5% and 8.4%, respectively, as compared to the three and six months ended June 30, 2024, primarily due to the consolidation of Allied | Harbor Point Office Garage and the commencement of operations at Southern Post Office.
Previous report
Office same store rental revenues, property expenses, and NOI for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):
Previous report
Multifamily rental revenues, property expenses, and NOI for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):
Previous report
Multifamily same store rental revenues, property expenses and NOI for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):
Previous report
Multifamily same store NOI for the three months ended June 30, 2025 increased $0.2 million, or 3.0%, as compared to the three months ended June 30, 2024, primarily due to higher occupancy and higher rental rates. Multifamily same store NOI for the six months ended June 30, 2025 was materially consistent with the six months ended June 30, 2024.
Previous report
Rental revenues for the three and six months ended June 30, 2025 increased $1.9 million and $3.8 million, or 3.0% and 3.0%, compared to the three and six months ended June 30, 2024 as follows (in thousands):
Previous report
Retail rental revenues for the three and six months ended June 30, 2025 decreased $1.3 million and $2.2 million, or 4.9% and 4.2%, respectively, as compared to the three and six months ended June 30, 2024, primarily due to the disposition of the Market at Mill Creek and Nexton Square properties, partially offset by the consolidation of Allied | Harbor Point Retail.
Previous report
Office rental revenues for the three and six months ended June 30, 2025 increased $1.5 million and $3.5 million, or 6.7% and 7.9%, respectively, as compared to the three and six months ended June 30, 2024, primarily due to the consolidation of the Allied | Harbor Point Office Garage, the commencement of operations at Southern Post Office, and new tenants at Wills Wharf Office and The Interlock Office.
Previous report
Multifamily rental revenues for the three and six months ended June 30, 2025 increased $1.6 million and $2.4 million, or 11.5% and 8.5%, respectively, as compared to the three and six months ended June 30, 2024, primarily due to the consolidation of Allied | Harbor Point and the commencement of operations at Chandler Residences.
Previous report
Retail rental expenses for the three months ended June 30, 2025 decreased $0.1 million, or 3.4%, compared to the three months ended June 30, 2024 primarily due to the dispositions of the Market at Mill Creek and Nexton Square properties in 2024, partially offset by the consolidation of Allied | Harbor Point Retail. Retail rental expenses for the six months ended June 30, 2025 increased less than $0.1 million, or 1.2%, compared to the six months ended June 30, 2024, primarily due to the consolidation of Allied | Harbor Point Retail and the commencement of operations at Southern Post Retail, partially offset by the dispositions of the Market at Mill Creek and Nexton Square properties in 2024.
Previous report
Multifamily rental expenses for the three and six months ended June 30, 2025 increased $0.8 million and $1.4 million, or 17.5% and 15.0%, respectively, as compared to the three and six months ended June 30, 2024, primarily due to the consolidation of The Allied | Harbor Point and the commencement of operations at Chandler Residences.
Previous report
Office real estate taxes for the three and six months ended June 30, 2025 increased $0.5 million and $0.6 million, or 25.4% and 14.2%, respectively, as compared to the three and six months ended June 30, 2024, primarily due to the consolidation of Allied | Harbor Point Office Garage and increased assessments at our Harbor Point properties.
Previous report
Multifamily real estate taxes for the three and six months ended June 30, 2025 increased $0.3 million, and $0.4 million, or 24.1% and 13.9%, respectively, as compared to the three and six months ended June 30, 2024, primarily due to the consolidation of Allied | Harbor Point.
Previous report
General contracting and real estate services expenses for the three and six months ended June 30, 2025 decreased $81.9 million and $159.6 million, or 72.8% and 67.8%, respectively, as compared to the three and six months ended June 30, 2024 primarily due to the substantial reduction in our backlog as previously executed projects were completed.
Previous report
General and administrative expenses for the three and six months ended June 30, 2025 increased 33.2% and 29.0%, respectively, as compared to the three and six months ended June 30, 2024, primarily due to severance costs, as well as the one-time acceleration of the former Chief Executive Officer's performance award for the prior year.
Previous report
Interest expense for the three and six months ended June 30, 2025 was materially consistent with the three and six months ended June 30, 2024.
Previous report
During the six months ended June 30, 2025, net cash used in investing activities decreased $14.2 million compared to the six months ended June 30, 2024, primarily due to less capital funded towards real estate financing and equity method investments.
Reworded paragraphs (56)
Previous wording
The balance on the Solis Gainesville II note was $26.1 million as of June 30, 2025, which includes $6.1 million of cumulative accrued interest, $0.4 million of cumulative accrued unused commitment fees and a discount of $0.1 million due to unamortized equity fees. During the three and six months ended June 30, 2025, we recognized $0.4 million and $0.8 million, respectively, of interest income on the note. As of June 30, 2025, this note was fully funded and the development property was approximately 95% leased.
Current wording
The balance on the Solis Gainesville II note was $26.5 million as of September 30, 2025, which includes $6.5 million of cumulative accrued interest, $0.4 million of cumulative accrued unused commitment fees and a discount of $0.1 million due to unamortized equity fees. During the three and nine months ended September 30, 2025, we recognized $0.4 million and $1.2 million, respectively, of interest income on the note. As of September 30, 2025, this note was fully funded and the development property was approximately 90% leased.
Previous wording
The balance on the Solis Kennesaw note was $48.3 million as of June 30, 2025, which includes $7.8 million of cumulative accrued interest, $2.9 million of cumulative accrued unused commitment fees and a discount of $0.3 million due to unamortized equity fees. During the three and six months ended June 30, 2025, we recognized $1.3 million and $2.7 million, respectively, of interest income on the note. As of June 30, 2025, this note was fully funded.
Current wording
The balance on the Solis Kennesaw note was $49.4 million as of September 30, 2025, which includes $8.9 million of cumulative accrued interest, $2.9 million of cumulative accrued unused commitment fees and a discount of $0.2 million due to unamortized equity fees. During the three and nine months ended September 30, 2025, we recognized $1.1 million and $3.8 million, respectively, of interest income on the note. As of September 30, 2025, this note was fully funded and the development property was approximately 55% leased.
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, 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.
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. On November 1, 2025, the investment began bearing 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 $36.0 million as of June 30, 2025, which includes $5.7 million of cumulative accrued interest, $2.1 million of cumulative accrued unused commitment fees and a discount of $0.2 million due to unamortized equity fees. During the three and six months ended June 30, 2025, we recognized $1.2 million and $2.5 million, respectively, of interest income on the note. As of June 30, 2025, this note was fully funded.
Current wording
The balance on the Solis Peachtree Corners note was $37.4 million as of September 30, 2025, which includes $7.0 million of cumulative accrued interest, $2.1 million of cumulative accrued unused commitment fees and a discount of $0.2 million due to unamortized equity fees. During the three and nine months ended September 30, 2025, we recognized $1.4 million and $3.8 million, respectively, of interest income on the note. As of September 30, 2025, this note was fully funded and the development property was approximately 28% leased.
Previous wording
The balance on The Allure at Edinburgh note was $11.7 million as of June 30, 2025, which includes $2.5 million of cumulative accrued interest. During the three and six months ended June 30, 2025, we recognized $0.2 million and $0.5 million, respectively, of interest income on the note. As of June 30, 2025, this note was fully funded and the development property was approximately 90% leased.
Current wording
The balance on The Allure at Edinburgh note was $11.9 million as of September 30, 2025, which includes $2.7 million of cumulative accrued interest. During the three and nine months ended September 30, 2025, we recognized $0.2 million and $0.7 million, respectively, of interest income on the note. As of September 30, 2025, this note was fully funded and the development property was approximately 98% leased.
Previous wording
The balance on the Solis North Creek note was $19.7 million as of June 30, 2025, which includes $0.7 million of cumulative accrued interest and $0.9 million of cumulative accrued unused commitment fees. During the three and six months ended June 30, 2025, we recognized $0.5 million and $1.0 million, respectively, of interest income on the note.
Current wording
The balance on the Solis North Creek note was $29.2 million as of September 30, 2025, which includes $1.4 million of cumulative accrued interest and $1.0 million of cumulative accrued unused commitment fees. During the three and nine months ended September 30, 2025, we recognized $0.8 million and $1.7 million, respectively, of interest income on the note. As of September 30, 2025, this note was fully funded.
Previous wording
Second Quarter 2025 and Recent Highlights
Current wording
Third Quarter 2025 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 $3.9 million, or $0.04 per diluted share, compared to net income attributable to common stockholders and OP Unitholders of $0.4 million, or $0.00 per diluted share, for the three months ended June 30, 2024.
Current wording
•Net loss attributable to common stockholders and holders ("OP Unitholders") of units of limited partnership interest in the Operating Partnership ("OP Units") of $3.6 million, or $0.04 per diluted share, compared to net loss attributable to common stockholders and OP Unitholders of $10.4 million, or $0.11 per diluted share, for the three months ended September 30, 2024.
Previous wording
•Funds from operations attributable to common stockholders and OP Unitholders ("FFO") of $19.0 million, or $0.19 per diluted share, compared to $22.4 million, or $0.25 per diluted share, for the three months ended June 30, 2024. See "Non-GAAP Financial Measures."
Current wording
•Funds from operations attributable to common stockholders and OP Unitholders ("FFO") of $20.2 million, or $0.20 per diluted share, compared to $12.7 million, or $0.14 per diluted share, for the three months ended September 30, 2024. See "Non-GAAP Financial Measures."
Previous wording
•Normalized funds from operations attributable to common stockholders and OP Unitholders ("Normalized FFO") of $25.4 million, or $0.25 per diluted share, compared to $30.2 million, or $0.34 per diluted share, for the three months ended June 30, 2024. See "Non-GAAP Financial Measures."
Current wording
•Normalized funds from operations attributable to common stockholders and OP Unitholders ("Normalized FFO") of $29.6 million, or $0.29 per diluted share, compared to $31.4 million, or $0.35 per diluted share, for the three months ended September 30, 2024. See "Non-GAAP Financial Measures."
Previous wording
•As of June 30, 2025, weighted average stabilized portfolio occupancy was 94.9%. Retail occupancy was 94.2%, office occupancy was 96.3%, and multifamily occupancy was 94.0%.
Current wording
•As of September 30, 2025, weighted average stabilized portfolio occupancy was 95.7%. Retail occupancy was 96.0%, office occupancy was 96.5%, and multifamily occupancy was 94.2%.
Previous wording
•Executed 16 commercial lease renewals and 10 new commercial leases during the second quarter for an aggregate of 168,197 of net rentable square feet.
Current wording
•Executed 25 commercial lease renewals and 7 new commercial leases during thethird quarter for an aggregate of 269,756 of net rentable square feet.
Previous wording
•Same Store Net Operating Income ("NOI") increased 1.4% on a GAAP basis compared to the quarter ended June 30, 2024.
Current wording
•Same Store Net Operating Income ("NOI") increased 1.0% on a GAAP basis compared to the quarter ended September 30, 2024.
Previous wording
•Third-party construction backlog as of June 30, 2025 was $106.6 million and construction gross profit for the second quarter was $1.4 million.
Current wording
•Third-party construction backlog as of September 30, 2025 was $83.9 million and construction gross profit for thethird quarter was $2.1 million.
Previous wording
•During the second quarter of 2025, unrealized losses on non-designated interest rate derivatives that negatively affected FFO were $3.8 million. As of June 30, 2025, the value of the Company’s entire interest rate derivative portfolio, net of unrealized losses, was $8.2 million. These losses are excluded from normalized FFO.
Current wording
•During thethird quarter of 2025, unrealized losses on non-designated interest rate derivatives that negatively affected FFO were $8.1 million. As of September 30, 2025, the value of the Company’s entire interest rate derivative portfolio, net of unrealized losses, was $13.4 million. These unrealized losses are excluded from normalized FFO.
Previous wording
•On July 22, 2025, we, as parent guarantor, and the Operating Partnership, as borrower, entered into a note purchase agreement with institutional investors, pursuant to which the Operating Partnership sold, and the institutional investors purchased, an aggregate of $115.0 million of senior unsecured notes of the Operating Partnership, consisting of (a) $25.0 million aggregate principal amount of 5.57% Senior Notes, Series A, due July 22, 2028, (b) $45.0 million aggregate principal amount of 5.78% Senior Notes, Series B, due July 22, 2030 and (c) $45.0 million aggregate principal amount of 6.09% Senior Notes, Series C, due July 22, 2032 (collectively, the “Notes”). The issue price for the Notes was 100% of the aggregate principal amount thereof. We utilized the proceeds of the sale of the Notes to repay the $65.0 million construction loan secured by the Southern Post mixed-use asset and $48.0 million under the revolving credit facility.
Current wording
•On July 22, 2025, we, as parent guarantor, and the Operating Partnership, as borrower, entered into a note purchase agreement with institutional investors, pursuant to which the Operating Partnership sold, and the institutional investors purchased, an aggregate of $115.0 million aggregate principal amount of senior unsecured notes of the Operating Partnership, consisting of (a) $25.0 million aggregate principal amount of 5.57% Senior Notes, Series A, due July 22, 2028, (b) $45.0 million aggregate principal amount of 5.78% Senior Notes, Series B, due July 22, 2030 and (c) $45.0 million aggregate principal amount of 6.09% Senior Notes, Series C, due July 22, 2032 (collectively, the “Notes”). The issue price for the Notes was 100% of the aggregate principal amount thereof. We utilized the net proceeds of the sale of the Notes to repay the $65 million construction loan secured by the Southern Post mixed-use asset and $48.0 million under the revolving credit facility.
Previous wording
Retail segment NOI for the three and six months ended June 30, 2025 decreased $1.0 million and $2.0 million, or 5.0% and 5.2%, respectively, compared to the three and six months ended June 30, 2024 due to the disposition of the Market at Mill Creek and Nexton Square properties, partially offset by the consolidation of Allied | Harbor Point Retail and the commencement of operations at Southern Post Retail.
Current wording
2.7%, compared to the nine months ended September 30, 2024 due to the disposition of the Market at Mill Creek and Nexton Square properties, partially offset by the commencement of operations at Southern Post Retail.
Previous wording
Retail same store results for the three and six months ended June 30, 2025 and 2024 exclude Southern Post Retail, Allied | Harbor Point Retail, and Columbus Village II due to redevelopment, and Market at Mill Creek and Nexton Square due to their disposition in December 2024.
Current wording
Retail same store results for the three and nine months ended September 30, 2025 and 2024 exclude Southern Post Retail, Allied | Harbor Point Retail, and Columbus Village II due to redevelopment, and Market at Mill Creek and Nexton Square due to their disposition in December 2024.
Previous wording
Office same store results for the three and six months ended June 30, 2025 and 2024 exclude Southern Post Office and Harbor Point Parcel 4 Office Garage.
Current wording
Office same store results for the three and nine months ended September 30, 2025 and 2024 exclude Southern Post Office and Allied | Harbor Point Office Garage.
Previous wording
Office same store NOI for the three and six months ended June 30, 2025 increased $0.2 million and $1.5 million, or 1.6% and 5.3%, respectively, as compared to the three and six months ended June 30, 2024, primarily due to new tenants at The Interlock Office and Wills Wharf Office properties.
Current wording
Office same store NOI for the three and nine months ended September 30, 2025 increased $0.7 million and $2.2 million, or 4.5% and 5.0%, respectively, as compared to the three and nine months ended September 30, 2024, primarily due to new tenants at The Interlock Office and Wills Wharf Office properties.
Previous wording
Multifamily segment NOI for the three and six months ended June 30, 2025 increased $0.5 million and $0.7 million, or 6.0% and 4.2%, respectively, as compared to the three and six months ended June 30, 2024 primarily due to the commencement of operations at Chandler Residences and the consolidation of Allied | Harbor Point.
Current wording
Multifamily segment NOI for the three and nine months ended September 30, 2025 increased $1.3 million and $2.3 million, or 16.5% and 9.1%, respectively, as compared to the three and nine months ended September 30, 2024 primarily due to higher occupancy and stabilization in the second quarter of 2025 at Chandler Residences, and the consolidation of Allied | Harbor Point in the second quarter of 2025.
Previous wording
Multifamily same store results for the three and six months ended June 30, 2025 and 2024 exclude Chandler Residences and Allied | Harbor Point.
Current wording
Multifamily same store results for the three and nine months ended September 30, 2025 and 2024 exclude Chandler Residences, Allied | Harbor Point and Greenside Apartments.
Previous wording
General contracting and real estate services revenues, expenses, and gross profit for the three and six months ended June 30, 2025 and 2024 were as follows ($ in thousands):
Current wording
General contracting and real estate services revenues, expenses, and gross profit for the three and nine months ended September 30, 2025 and 2024 were as follows ($ in thousands):
Previous wording
April 2025. In April 2025 the project was brought on balance sheet through consolidation and as a result, all associated revenue and cost are eliminated in consolidation. The Company remains entitled to receive cash proceeds related to the eliminated amounts. Prior to the impact of these gross profit eliminations, operating margin was 3.8% and 3.4% for the three and six months ended June 30, 2025, respectively, and 4.0% and 3.7% for the three and six months ended June 30, 2024, respectively.
Current wording
(1)50% of the gross profit attributable to our T. Rowe Price Global HQ project is not reflected within general contracting & real estate services revenues due to elimination. For the Allied | Harbor Point development project, 77% of gross profit was eliminated through April 2025. In April 2025 the project was brought on balance sheet through consolidation and as a result, all associated revenue and cost are eliminated in consolidation. The Company remains entitled to receive cash proceeds related to the eliminated amounts. Prior to the impact of these gross profit eliminations, operating margin was 8.9% and 4.7% for the three and nine months ended September 30, 2025, respectively, and 3.2% and 3.7% for the three and nine months ended September 30, 2024, respectively.
Previous wording
General contracting and real estate services segment gross profit for the three and six months ended June 30, 2025 decreased $3.0 million and $5.7 million, respectively, as compared to the three and six months ended June 30, 2024, primarily due to the substantial reduction in our backlog as previously executed projects were completed.
Current wording
General contracting and real estate services segment gross profit for the three and nine months ended September 30, 2025 decreased $1.3 million and $7.0 million, respectively, as compared to the three and nine months ended September 30, 2024, primarily reflecting the reduction in revenue as third-party project backlog was completed. $1.4 million of the gross profit recognized for the three and nine months ended September 30, 2025 was due to savings recognized on the Solis Kennesaw contract during the period.
Previous wording
The changes in third party construction backlog for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):
Current wording
The changes in third party construction backlog for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):
Previous wording
As of June 30, 2025, we had $6.2 million in the backlog relating to the Harbor Point Parcel 3 development in Baltimore.
Current wording
As of September 30, 2025, we had $1.4 million in the backlog relating to the Harbor Point Parcel 3 development in Baltimore.
Previous wording
Real estate financing interest income, interest expense, and gross profit for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):
Current wording
Real estate financing interest income, interest expense, and gross profit for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):
Previous wording
Real estate financing gross profit for the three and six months ended June 30, 2025 decreased 20.6% and 22.6%, respectively, as compared to the three and six months ended June 30, 2024, primarily due to decreased interest rates for Solis Gainesville II, The Allure at Edinburgh, and Solis Kennesaw, partially offset by higher principal balances for Solis Kennesaw, Solis North Creek, and Solis Peachtree Corners.
Current wording
Real estate financing gross profit for the three and nine months ended September 30, 2025 decreased 13.6% and 11.3%, respectively, as compared to the three and nine months ended September 30, 2024, primarily due to decreased interest rates for Solis Gainesville II, The Allure at Edinburgh, and Solis Kennesaw, partially offset by higher principal balances across multiple investments.
Previous wording
The following table summarizes the results of operations for the three and six months ended June 30, 2025 and 2024 (unaudited, in thousands):
Current wording
The following table summarizes the results of operations for the three and nine months ended September 30, 2025 and 2024 (unaudited, in thousands):
Previous wording
Retail real estate taxes for the three and six months ended June 30, 2025 decreased $0.2 million and $0.3 million, or 6.6% and 5.5%, respectively, as compared to the three and six months ended June 30, 2024, primarily due to the dispositions of the Market at Mill Creek and Nexton Square properties, partially offset by the consolidation of Allied | Harbor Point Retail.
Current wording
Retail rental revenues for the three and nine months ended September 30, 2025 decreased $0.7 million and $2.9 million, or 2.8% and 3.7%, respectively, as compared to the three and nine months ended September 30, 2024, primarily due to [the dispositions of Market at Mill Creek and Nexton Square, partially offset by the commencement of operations at Southern Post Retail.
Previous wording
General contracting and real estate services revenues for the three and six months ended June 30, 2025 decreased $84.9 million and $165.2 million, respectively, as compared to the three and six months ended June 30, 2024, primarily due to the substantial reduction in our backlog as previously executed projects were completed.
Current wording
General contracting and real estate services revenues for the three and nine months ended September 30, 2025 decreased $91.2 million and $256.4 million, respectively, as compared to the three and nine months ended September 30, 2024, primarily due to the higher volume of work completed in 2024.
Previous wording
Interest income for the three and six months ended June 30, 2025 decreased $0.5 million and $0.9 million, or 10.6% and 9.6%, respectively, as compared to the three and six months ended June 30, 2024, primarily due to the payoff of the Solis City Park II investment in July 2024, as well as decreased interest rates for Solis Gainesville II, The Allure at Edinburgh, as well as Solis Kennesaw in the first quarter of 2025, partially offset by increased principal balances for other real estate financing investments.
Current wording
Interest income for the three and nine months ended September 30, 2025 decreased $0.5 million and $1.4 million, or 11.4% and 10.2%, respectively, as compared to the three and nine months ended September 30, 2024, primarily due to the payoff of the Solis City Park II investment in July 2024, as well as decreased interest rates for Solis Gainesville II, The Allure at Edinburgh, and Solis Kennesaw, partially offset by increased principal balances for other real estate financing investments.
Previous wording
Rental expenses for the three and six months ended June 30, 2025 increased $1.0 million and $2.0 million or 6.6% and 6.8%, respectively, as compared to the three and six months ended June 30, 2024 as follows (in thousands):
Current wording
Rental expenses for the three and nine months ended September 30, 2025 increased $1.0 million and $3.0 million or 5.8% and 6.4%, respectively, as compared to the three and nine months ended September 30, 2024 as follows (in thousands):
Previous wording
Office rental expenses for the three and six months ended June 30, 2025 increased $0.3 million and $0.6 million, or 5.2% and 4.6%, respectively, as compared to the three and six months ended June 30, 2024, primarily due to increased utilities and contracted property services.
Current wording
Office rental expenses for the three and nine months ended September 30, 2025 increased $0.6 million and $1.8 million, or 9.7% and 9.9%, respectively, as compared to the three and nine months ended September 30, 2024, primarily due to increased utilities at the Harbor Point properties due to increased usage as a result of the return to office trend and commencement of operations at Southern Post Office.
Previous wording
Real estate taxes for the three and six months ended June 30, 2025 increased $0.7 million and $0.7 million or 12.0% and 6.1%, respectively, as compared to the three and six months ended June 30, 2024 as follows (in thousands):
Current wording
Real estate taxes for the three months ended September 30, 2025 were materially consistent as compared to the three months ended September 30, 2024. Real estate taxes for the nine months ended and September 30, 2025 increased $0.7 million, or 3.8%, as compared to the nine months ended September 30, 2024 as follows (in thousands):
Previous wording
Depreciation and amortization for the three and six months ended June 30, 2025 increased 2.7% and 7.0%, respectively, as compared to the three and six months ended June 30, 2024, primarily due to commencement of operations at the Southern Post mixed-use property and the consolidation of Allied | Harbor Point mixed-use property.
Current wording
Depreciation and amortization for the three months ended September 30, 2025 was materially consistent with the three months ended September 30, 2024. Depreciation and amortization for the nine months ended September 30, 2025 increased 3.6% as compared to the nine months ended September 30, 2024, primarily due to the commencement of operations at the mixed-use Southern Post property and the Chandler Residences property, as well as the consolidation of the mixed-use Allied | Harbor Point property.
Previous wording
Acquisition, development, and other pursuit costs for the three and six months ended June 30, 2025 decreased 94.8% and 93.8%, respectively, as compared to the three and six months ended June 30, 2024, primarily due to the write off of development costs related to an undeveloped land parcel in predevelopment located in Charlotte, North Carolina in 2024.
Current wording
Acquisition, development, and other pursuit costs for the three months ended September 30, 2025 and 2024 were immaterial. Acquisition, development, and other pursuit costs for the nine months ended September 30, 2025 were immaterial. Acquisition, development, and other pursuit costs for the nine months ended September 30, 2025 decreased as compared to the nine months ended September 30, 2024 due to the write off of development costs related to an undeveloped land parcel in predevelopment located in Charlotte, North Carolina.
Previous wording
Equity in loss of unconsolidated real estate entities for the three and six months ended June 30, 2025 relates to the commencement of operations at Harbor Point Parcel 3 and Harbor Point Parcel 4 in the first quarter of 2025 and the fourth quarter of 2024, respectively. Harbor Point Parcel 4 was consolidated in the second quarter of 2025. Refer to Note 5 for more information.
Current wording
Equity in loss of unconsolidated real estate entities for the three and nine months ended September 30, 2025 relates to the commencement of operations at Harbor Point Parcel 3 and Allied | Harbor Point in the first quarter of 2025 and the fourth quarter of 2024, respectively. Allied | Harbor Point was consolidated in the second quarter of 2025. Refer to Note 5 for more information.
Previous wording
The change in fair value of derivatives and other for the three and six months ended June 30, 2025 included a decrease in interest receipts for non-designated derivatives due to decreased interest rates, and a decrease in the fair value of our derivative instruments due to decreases in the forward SOFR curve.
Current wording
The change in fair value of derivatives and other for the three and nine months ended September 30, 2025 included an increase in interest receipts for non-designated derivatives due to a higher notional amount of derivatives not designated as cash flow hedges outstanding, and a decrease in the fair value of our derivative instruments due to decreases in the forward SOFR curve.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
General and administrative expenses for the three months ended September 30, 2025 decreased 14.3% as compared to the three months ended September 30, 2024 due to the severance costs in the third quarter of 2024. General and administrative expenses for the nine months ended September 30, 2025 increased 14.6% as compared to the nine months ended September 30, 2024, primarily due to the double-issuance of stock compensation due to a modification in the structure of executive compensation grants, including the impact of grants in the current year that are related to the prior year's performance and grants that are related to the current year's performance. New grants are now issued in the year in which performance relates. There also was a one-time acceleration of 100% of stock compensation awarded to our former Chief Executive Officer in relation to prior year performance, and a one-time special award granted in June 2025.
Current report — wording carried from elsewhere
On July 22, 2025, we and the Operating Partnership entered into a note purchase agreement (the “Note Purchase Agreement”), with institutional investors, pursuant to which the Operating Partnership sold, and the institutional investors purchased,which $115.0 million aggregate principal amount of unsecured notes, consisting of (a) $25.0 million aggregate principal amount of of 5.57% Senior Notes, Series A, due July 22, 2028, (b) $45.0 million aggregate principal amount of 5.78% Senior Notes, Series B, due July 22, 2030, and (c) $45.0 million aggregate principal amount of 6.09% Senior Notes, Series C, due July 22, 2032 (collectively, the "Notes").
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
(1)50% of the gross profit attributable to our T. Rowe Price Global HQ project is not reflected within general contracting & real estate services revenues due to elimination. For the Allied | Harbor Point development project, 77% of gross profit was eliminated through
Previous report — wording carried elsewhere
(c) We repaid this loan on July 22, 2025.