AH Realty Trust, Inc (AHRT) 2025 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Armada Hoffler 2025 earnings conference call.

各位女士、先生，早安，歡迎參加 Armada Hoffler 2025 年度盈餘電話會議。

(Operator Instructions) This call is being recorded on Tuesday, August 5, 2025. I would now like to hand the conference call over to Chelsea Forrest, VP of Investor Relations.

(接線員指示) 本通話於 2025 年 8 月 5 日（星期二）錄音。現在我將把電話會議交給投資人關係副總裁 Chelsea Forrest。

Please go ahead.

請開始。

Good morning, and thank you for joining our Armada Hoffler second-quarter 2025 earnings conference call and webcast.

各位早安，感謝您加入 Armada Hoffler 2025 年第二季盈餘電話會議與網路直播。

On the call this morning, in addition to myself, is Shawn Tibbetts, CEO and President; and Matthew Barnes-Smith, CFO. The press release announcing our second-quarter earnings, along with our supplemental package, were distributed yesterday afternoon. A replay of this call will be available shortly after the conclusion of the call through September 4, 2025. The numbers to access the replay are provided in the earnings press release.

今天早上的電話會議中，除我之外，還有執行長兼總裁 Shawn Tibbetts，以及財務長 Matthew Barnes-Smith。公布我們第二季盈餘的新聞稿，以及補充資料包，已於昨天下午發出。本通話的重播將於通話結束後不久提供，並可使用至 2025 年 9 月 4 日。存取重播的電話號碼已載於盈餘新聞稿中。

For those who listened to the rebroadcast of this presentation, we remind you that the remarks made herein are as of today, August 5, 2025, and will not be updated subsequent to the initial earnings call. During this call, we may make forward-looking statements, including statements related to the future performance of our portfolio, our development pipeline, the impact of acquisitions and dispositions, our mezzanine program, our construction business, our liquidity position, our portfolio performance, and financing activities, as well as comments on our outlook.

對於收聽本簡報重播的聽眾，我們提醒您：本次發言係截至今日（2025 年 8 月 5 日），且在首次盈餘電話會議後將不再更新。在本通話中，我們可能會作出前瞻性陳述，包括與我們投資組合未來表現、開發案管線、收購與處分之影響、夾層融資計畫、營造事業、流動性狀況、投資組合表現與融資活動相關之陳述，以及對我們展望的評論。

Listeners are cautioned that any forward-looking statements are based upon management's beliefs, assumptions, and expectations, taking into account information that is currently available. These beliefs, assumptions, and expectations may change as a result of possible events or factors, not all of which are known and many of which are difficult to predict and generally beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations, and we advise listeners to review the forward-looking statement disclosure in our press release that we distributed yesterday, and the risk factors disclosed in the document we have filed with and furnished to the FTC. We will also discuss certain non-GAAP financial measures, including, but not limited to, FFO and normalized FFO. Definitions of these non-GAAP measures, as well as reconciliations to those comparable GAAP measures, are included in the quarterly supplemental package, which is available on our website at armadahoffler.com.

提醒聽眾注意，任何前瞻性陳述均係基於管理階層的信念、假設與預期，並考量目前可得資訊。這些信念、假設與預期可能因潛在事件或因素而改變，其中並非全部已知，且多數難以預測並通常超出我們的控制範圍。上述風險與不確定性可能導致實際結果與我們目前預期存在重大差異；我們建議聽眾查閱我們於昨日發布之新聞稿中的前瞻性陳述揭露，以及我們已向 FTC 申報並提供之文件中揭露的風險因素。我們也將討論若干非 GAAP 財務衡量指標，包括但不限於 FFO 與標準化 FFO。這些非 GAAP 指標之定義，以及與相對應 GAAP 指標之調節表，均收錄於季度補充資料包中，並可於我們網站 armadahoffler.com 取得。

I will now turn the call over to Shawn.

我現在把電話交給 Shawn。

Good morning and thank you for joining us as we review Armada Hoffler's second-quarter results and share our perspective on the path forward for the remainder of 2025 and beyond. Our portfolio continues to deliver consistent NOI growth, underscoring the strength of our assets and the discipline of our execution. In parallel, we are making meaningful progress on enhancements of the balance sheet, supporting long-term growth and flexibility. We are committed to our strategic foundation, which is quality, a company value that guides how we operate and allocate capital. We are focused on maintaining a high-performing portfolio, optimizing property-level performance and margin through operational excellence while delivering reliable results quarter after quarter. The second quarter results were solid across our portfolio. As outlined in our release, we delivered normalized FFO of $0.25 per diluted share, supported by consistent performance in office and retail. Office occupancy remained high at 96.3% with positive releasing spreads of 11.7%, while retail occupancy was 94.2% with renewal spreads of 10.8%. Multifamily experienced a modest dip in occupancy to 94%.

各位早安，感謝各位加入我們，一同回顧 Armada Hoffler 第二季業績，並分享我們對 2025 年剩餘期間及未來發展路徑的看法。我們的

Overall, portfolio occupancy remained healthy, averaging at least 95% for the fourth consecutive quarter. Property-level income continues to outperform our 2025 guidance. As we outlined last quarter, we adjusted our expectations for construction activity this year, and we remain in line with those updated projections. I will remind you of our strategy to shift away from reliance on fee income and toward higher quality, recurring property-level earnings in the coming years. Therefore, we are reaffirming four-year guidance. We believe that our focus on property income derived from the best properties in the market should benefit shareholders in terms of value and share multiple, as the equity market recognizes our shift away from mezzanine financing deals and fees for service. We believe the market rewards property-level income, which clearly deserves a higher value recognition.

整體而言，投資組合出租率仍維持健康水準，已連續第四季平均至少達 95%。物業層級收入持續優於我們 2025 年的財測指引。如我們在上季所述，我們已調整今年對營造活動的預期，且目前仍符合該更新後的預測。我將再次提醒各位，我們的策略是在未來幾年降低對手續費收入的依賴，轉向更高品質、可重複的物業層級經常性收益。因此，我們重申四年期指引。我們相信，聚焦於市場上最佳物業所產生的物業收入，將在價值與股價倍數方面使股東受益，因為股權市場將認可我們逐步遠離夾層融資交易以及服務費收入的轉型。我們認為市場會獎勵物業層級收入，而這顯然應獲得更高的價值認可。

On the capital front, we successfully completed our first debt private placement in July, raising $115 million. This transaction marks a significant milestone in balance sheet management, increasing financial flexibility while reducing interest rate risk. The demand and oversubscription for this issuance reflects confidence in our portfolio quality and long-term strategy. We are grateful for new long-term capital partnerships with these institutional investors. We look forward to expanding relationships with credit investors, such as life insurers and major banks. Matt will go over more details later in the call.

在資本面方面，我們於 7 月成功完成首次私募債務發行，募得 1.15 億美元。此交易是資產負債表管理上的重要里程碑，在提升財務彈性的同時降低利率風險。該次發行的需求強勁且超額認購，反映市場對我們投資組合品質與長期策略的信心。我們感謝與這些機構投資人建立新的長期資本合作關係。我們也期待擴大與信用投資人的合作，例如壽險公司與大型銀行。Matt將在稍後的通話中說明更多細節。

Our retail portfolio continues to perform well. We've successfully backfilled former big-box vacancies from tenants like PartyCity, Cons, Joanns, and Bed Bath & Beyond, with stronger, higher-credit retailers such as Trader Joe's, Booth Barn, Golf Galaxy, and others at a weighted average of 33% higher rents. This success reflects our ongoing focus on optimization of tenant mix, targeted reconfigurations, and proactive leasing strategies. With limited new big-box development nationally, we remain well positioned to capture demand for infill retail space and drive long-term value across the portfolio. I will highlight a few of these transactions. At Southgate in Colonial Heights, Virginia, we executed an LOI to downsize Burlington and create space for a national sporting goods retailer, also under LOI, therefore backfilling Cons. This reconfiguration would drive almost 40% rent increase and enhance tenant quality at the center. At Columbus Village, adjacent to Town Center of Virginia Beach, we are pleased to confirm Trader Joe's as the anchor grocer for the former Bed Bath & Beyond space. Trader Joe's will be joined by Golf Galaxy, with both expected to open by early 2026. We expect to grow rents by nearly 60% over what Bed Bath & Beyond was paying. These additions further elevate the area's retail appeal and support the 130,000 residents within a three-mile radius and our 760 apartment units at Town Center.

我們的零售投資組合持續表現良好。我們已成功回填先前的大型店面空置（原租戶包括 PartyCity、Cons、Joanns 與 Bed Bath & Beyond），並引進更強、更高信用等級的零售商，如 Trader Joe's、Booth Barn、Golf Galaxy 等，租金加權平均提高 33%。此成果反映我們持續聚焦於租戶組合最佳化、針對性重新配置，以及主動式招租策略。由於全美新增大型店面開發有限，我們仍具備良好條件掌握都會填充型（infill）零售空間需求，並推動整體投資組合的長期價值。我將重點說明其中幾筆交易。在維吉尼亞州 Colonial Heights 的 Southgate，我們已簽署意向書（LOI），將 Burlington 縮小店面並創造空間給一家全國性運動用品零售商（亦已在 LOI 階段），從而回填 Cons 原址。此重新配置可帶來近 40% 的租金成長，並提升該購物中心的租戶品質。在位於維吉尼亞海灘市 Town Center 旁的 Columbus Village，我們很高興確認 Trader Joe's 將成為原 Bed Bath & Beyond 空間的主力超市。TraderJoe's 將與 Golf Galaxy 一同進駐，兩者預計於 2026 年初開幕。我們預期租金將較 Bed Bath & Beyond 原支付水準成長近 60%。這些新增店家將進一步提升該區零售吸引力，並服務三英里範圍內約 13 萬名居民，以及我們在 Town Center 的 760 戶公寓單位。

Subsequent to the quarter, at Overlook Village in Asheville, we leased the former party city space to Boot Barn at over 60% leasing spread and assigned the Joanne lease to Burlington through the bankruptcy process, avoiding downtime and preserving rent. These changes enhance merchandising profiles and strengthen the tenant mix alongside anchors like TJ Maxx, Home Goods, and Ross. Southern Post and Roswell, Georgia, a northern Atlanta suburb, continues to grow into a dynamic, walkable destination that brings together residential, retail, dining, and office uses in a highly curated environment. Since last quarter, all the restaurants have opened, adding energy to the street-level experience and contributing to a steady increase in activity. We've also focused on activating the Central Plaza with community-driven events such as live music and local markets, reinforcing Southern Post's role as both a neighborhood amenity and destination. Interest in the remaining office space remains healthy, supported by the vibrant mixed-use setting and the strong demand we continue to see for well-located, experiential environments. Our office portfolio remains essentially full at 96% occupancy, with minimal vacancy and continued demand for the limited space that remains.

在本季結束後，於阿什維爾（Asheville）的 Overlook Village，我們以超過 60% 的出租價差將原 Party City 的店面出租給 Boot Barn，並透過破產程序將 Joanne 的租約轉讓給 Burlington，避免空置並維持租金收入。這些

The primary driver of the quarter's occupancy change was the return of a WeWork floor at one city center in Durham, North Carolina, which we had previously communicated. Including this give-back, we were able to maintain high occupancy across the portfolio and were seeing interest in the space. Notably, less than 4% of our office space expires in 2026, providing strong earnings visibility and minimal near-term backfill risk. This stable performance reflects our strategy of owning office assets within amenity-rich, mixed-use environments, locations that continue to attract and retain tenants in today's hybrid work landscape. Recent trends reinforce this strategy. A recent Fortune article highlighted that 54% of Fortune 100 companies have now returned to fully in-office work, up from just 5% two years ago. With hybrid models declining to 41%. Reflecting this dynamic, we're seeing interest from firms relocating from the aging suburban office parks or hollowed-out downtown cores to more engaging, high-amenity environments. Town Center Virginia Beach continues to draw employers valuing walkable access to dining, retail, and residences. Harbor Point and Baltimore has experienced the same trend. Since the opening of the new T. Rowe Price Global Headquarters, which was intentionally located there for these very reasons, retail sales at Harbor Point have increased by over 20%, reinforcing the long-term value of our placemaking strategy. The Wall Street Journal recently highlighted research from ADP that once again listed Baltimore as among the very best metros for recent college graduates based on high wages, a very strong hiring rate, and affordability. In Baltimore, college graduates are landing jobs with top national firms in the financial services, technology, and healthcare sectors. And within Baltimore, we believe that the new Harbor Point submarket is the epicenter of that trend with major financial and professional service tenants like T. Rowe Price, T. Ful, Franklin Templeton, EY, Transamerica, and Morgan Stanley anchoring our office space. This growing cluster of high-quality employers are attracting top-tier talent who value having a short walk to great waterfront restaurants, retail, and residential options. Our multifamily portfolio maintains solid fundamentals, delivering occupancy of 94%, a modest decline from 95% in the first quarter. The dip in occupancy was driven in part by seasonal turnover at the Edison and Smiths landing, as well as supply and demand pressures tied to the broader macroeconomic environment and shifts in federal funding, factors that have a heightened impact on properties located near universities. However, I am pleased to let you know that we are now 95% lease at Smiths Landing. Renewal leases in the quarter grew by 4.8%, while new leases increased by 2.8%. These positive trends extended into July, with spreads continuing to improve at a blended .3% for July, underscoring the underlying demand in our key markets. Notably, Chandler Residences at Southern Post transitioned to our stabilized portfolio during the quarter, contributing to the strengthening of our asset base.

本季入住率變動的主要驅動因素，是北卡羅來納州達勒姆（Durham）One City Center 的一個 WeWork 樓層退租（give-back），我們先前已對外溝通。包含此退租在內，我們仍能維持整體投資組合的高入住率，且持續看到市場對該空間的興趣。值得注意的是，我們的辦公空間在 2026 年到期的比例不到 4%，提供良好的獲利能見度，並將短期回填風險降至最低。這樣的穩健表現反映了我們的策略：持有位於設施豐富之複合式使用環境中的辦公資產；在當前混合辦公的工作型態下，這些地點仍能持續吸引並留住租戶。近期趨勢也強化了此策略。近期一篇《Fortune》文章指出，財富 100 強企業中已有 54% 回到完全到辦公室工作，較兩年前僅 5% 大幅提升；而混合模式則下降至 41%。反映此一動態，我們看到企業從老舊的郊區辦公園區或日益空洞的市中心核心區，遷往更具吸引力、設施更完善的環境。TownCenter Virginia Beach 持續吸引重視可步行到達餐飲、零售與住宅的雇主。HarborPoint（巴爾的摩）也出現相同趨勢。自新的 T. Rowe Price 全球總部開幕以來（其選址正是基於上述原因），Harbor Point 的零售銷售額已增加逾 20%，進一步印證我們「營造場域」（placemaking）策略的長期價值。《華爾街日報》近期亦引用 ADP 的研究，再次將巴爾的摩列為近期大學畢業生最優秀的都會區之一，原因包括高薪資、非常強勁的聘僱率與可負擔性。在巴爾的摩，大學畢業生正進入金融服務、科技與醫療保健等領域的全國頂尖企業就業。而在巴爾的摩內部，我們認為新興的 Harbor Point 次市場是此趨勢的核心，T. Rowe Price、T. Ful、Franklin Templeton、EY、Transamerica 與 Morgan Stanley 等主要金融與專業服務租戶為我們的辦公空間提供支撐。這個持續成長的高品質雇主聚落，正吸引重視能短距離步行至優質海濱餐廳、零售與住宅選項的頂尖人才。我們的多戶住宅投資組合基本面仍然穩健，入住率為 94%，較第一季的 95% 小幅下滑。入住率的下降部分來自 Edison 與 Smiths Landing 的季節性換租，以及與整體宏觀經濟環境及聯邦資金變動相關的供需壓力；這些因素對於鄰近大學的物件影響更為顯著。不過，我很高興向各位說明，Smiths Landing 目前已達 95% 出租率。續租租約本季成長 4.8%，新租約成長 2.8%。這些正向趨勢延續至 7 月，7 月的綜合價差（blended spread）持續改善至 0.3%，凸顯我們核心市場的內在需求。值得注意的是，Southern Post 的 Chandler Residences 於本季轉入我們的穩定化投資組合，進一步強化我們的資產基礎。

In Harbor Point, Ally, the newest multifamily building, is leasing ahead of schedule at 68% lease as of July 20th. We continue to see strong demand for this premier waterfront location within the mixed-use community. At the same time, we're maintaining a disciplined approach to balance lease-up velocity at Ally, while monitoring potential impacts to occupancy and rent growth at our other Harbor Point multifamily assets, 1405 Point and 1305 Dock Street. At Greenside in Charlotte, construction is now underway on the improvements we outlined last quarter. These enhancements were prompted by water intrusion that affected several units, and we're using this as an opportunity to improve the building. Work is progressing in phases, and we will continue over the next 10 to 12 months, with a portion of units remaining offline during this time. Given Greenside's prime location in Midtown, less than a mile from the new Carolina's Medical Center and Pearl Innovation Medical District, we remain confident in our ability to generate long-term value from this asset. We're also actively evaluating opportunities within our real estate financing platform, including the potential to bring two high-quality multifamily assets, the Allure and Gainesville II, onto our balance sheet. The Allure, located in Chesapeake, Virginia, is currently 93% leased and continues to benefit from strong leasing momentals. The property is situated in a market with stable fundamentals and desirable demographics.

在 HarborPoint，最新的多戶住宅大樓 Ally 的出租進度超前，截至 7 月 20 日出租率達 68%。我們持續看到市場對此複合式使用社區中頂級海濱地段的強勁需求。同時，我們維持審慎的作法，在推進 Ally 出租速度的同時，監測其對我們其他 Harbor Point 多戶住宅資產（1405 Point 與 1305 Dock Street）之入住率與租金成長可能造成的影響。在夏洛特（Charlotte）的 Greenside，我們上季所說明的改善工程現已動工。這些改善係因滲水影響數個單位而啟動，我們也藉此機會提升建物品質。工程將分階段進行，預計在未來 10 至 12 個月持續推進，期間將有部分單位暫停使用。鑑於Greenside 位於 Midtown 的優越地段，距離新的 Carolina's Medical Center 與 Pearl Innovation Medical District 不到一英里，我們仍對此資產創造長期價值的能力充滿信心。我們也正積極評估不動產融資平台中的機會，包括可能將兩項高品質多戶住宅資產 Allure 與 Gainesville II 納入資產負債表。位於維吉尼亞州切薩皮克（Chesapeake）的 Allure 目前出租率為 93%，並持續受惠於強勁的出租動能。該物件所在市場基本面穩定，且人口結構具吸引力。

Within a five-mile radius, average household incomes exceed that of downtown Atlanta, and the area is served by some of the highest-rated public schools in the region. Gainesville II is approximately 97% leased and sits adjacent to our existing Everly multifamily asset, about an hour north of Atlanta. This proximity enables us to capture operating efficiencies and economies of scale by managing the two assets together. We expect bringing these properties onto our balance sheet will contribute additional recurring NOI and further enhance the quality of our portfolio.

在五英里半徑範圍內，平均家庭收入高於亞特蘭大市中心，且該區由本區評價最高的一些公立學校提供服務。GainesvilleII 的出租率約為 97%，緊鄰我們既有的 Everly 多戶住宅資產，位於亞特蘭大以北約一小時車程。這樣的鄰近性使我們能透過共同管理兩項資產，取得營運效率與規模經濟。我們預期將這些物件納入資產負債表後，可帶來額外的經常性 NOI，並進一步提升我們投資組合的品質。

We remain focused on value creation through disciplined execution. As we move through the second half of the year, we are well positioned to benefit from continued execution across the portfolio, from retail leasing and office occupancy consistency to the stabilization of recently delivered assets. I will echo my sentiment from the last call. We are building a stronger, simpler, and more resilient Armada-Hoffler. One that is more efficient, better balanced, and capable of generating consistent, reliable earnings growth over time. I'm proud of the momentum we have generated, and I am confident in the team's ability to deliver sustained, predictable earnings growth while enhancing shareholder value. I'll now turn the call over to Matt.

我們仍專注於透過嚴謹執行來創造價值。隨著我們進入今年下半年，我們已具備良好條件，得以受惠於投資組合各項工作的持續落實，從零售租賃與辦公室入住率的穩定表現，到近期交付資產的穩定化。我將重申我在上次電話會議中的看法。我們正在打造一個更強大、更精簡且更具韌性的 Armada-Hoffler。一個更有效率、結構更均衡，並能隨時間推進持續產生穩定、可靠盈餘成長的公司。我為我們所創造的動能感到自豪，也對團隊交付持續、可預期的盈餘成長並提升股東價值的能力充滿信心。接下來我把電話交給 Matt。

Good morning and thank you, Shawn.

各位早安，謝謝你，Shawn。

Armada Hoffler delivered another solid quarter reflecting the strength of our mixed-use portfolio, the resilience of our operating platform, and the continued execution of our financial strategy. We've signed a renewed momentum across the real estate sector and tenant demand broadening. We are executing with focused whilst positioning the business for long-term growth. For the second quarter of 2025, normalized FFO attributable to common shareholders was $25.4 million, or $0.25 per diluted share, in line with our expectations and guidance. FFO attributable to common shareholders was $19 million, or $0.19 per diluted share. FFO came in at $18.4 million, or $0.18 per diluted share, reflecting continued alignment between our operating cash flows and the restructured dividend. Same store NOI increased 1.4% on a GAAP basis and 0.3% on a cash basis.

Armada Hoffler 本季再度交出穩健的成績，反映出我們複合用途投資組合的實力、營運平台的韌性，以及財務策略的持續落實。我們看到房地產產業再度出現動能，且租戶需求正在擴大。我們在專注執行的同時，也為企業的長期成長進行布局。2025 年第二季，歸屬普通股股東的標準化 FFO 為 2,540 萬美元，或每股稀釋後 0.25 美元，符合我們的預期與指引。歸屬普通股股東的 FFO 為 1,900 萬美元，或每股稀釋後 0.19 美元。FFO 為 1,840 萬美元，或每股稀釋後 0.18 美元，反映我們營運現金流與重整後股利之間持續一致。同店 NOI 以 GAAP 基礎成長 1.4%，以現金基礎成長 0.3%。

Subsequent to the end of the quarter, we achieved an important milestone by successfully executing our first-ever private placement bond issuance, raising $115 million across three, five, and seven-year tranches. This targeted transaction was met with institutional demand and priced with a blended interest rate of 5.86% and a weighted average term of 5.3 years.

在季度結束後，我們成功完成公司史上首次私募債券發行，達成一項重要里程碑，於三年期、五年期與七年期三個分期共募得 1.15 億美元。此一具針對性的交易獲得機構投資人需求，並以 5.86% 的加權平均利率定價，加權平均期限為 5.3 年。

A portion of the proceeds from the private placement were used to repay the construction loans secured by Southern Post and a portion of our credit facilities, and the remaining proceeds will be used for general corporate purposes. This financing advances the three core pillars of our capital strategy, quality. We are transitioning our balance sheet towards fixed-rate, long-duration capital without reliance on derivative instruments. Several years ago, we targeted a reduction in our weighted average cost of capital through deleveraging and earning an investment-grade triple B rating on our balance sheet elements. That is not easy, given where we began, and we are not claiming total victory, but we have moved a long way on that path, with our rating and this transaction being good examples of what discipline can produce. Discipline. The proceeds were used to pay down shorter-term, high-cost facilities, improving cash flow visibility and volatility from variable rate debt. Whilst somewhat dilutive, it's again the right strategy, aligning our balance sheet assets and capital duration despite the near-term earnings mentalities that often drives reach management decisions. Simplicity. We are continuing to streamline our capital structure, improving the foundation of our investment-grade metrics and long-term strategic flexibility. This follows the work we began in the first quarter of this year, including the hedging transactions on $150 million of notional exposure and the board's decisions to right-size the dividend to a sustainable level. Taken together, these steps provide the right foundation for stability, strategic optionality, and sets the business up well for consistent shareholder returns through the cycle.

私募所得款項的一部分用於償還以 Southern Post 作擔保的建築貸款及部分信用融資，其餘款項將用於一般公司用途。此項融資推進我們資本策略的三大核心支柱：品質。我們正將資產負債表轉向固定利率、長天期資金來源，且不依賴衍生性工具。數年前，我們的目標是透過去槓桿化降低加權平均資本成本，並在資產負債表要素上取得投資等級 BBB 評級。考量我們起點所在，這並不容易；我們也不宣稱已完全達陣，但我們在這條路上已前進很遠，我們的評級與本次交易正是紀律所能帶來成果的良好例證。紀律。本次資金用於償還較短期、成本較高的融資工具，提升現金流可視性並降低浮動利率負債帶來的波動。雖然在某種程度上具有稀釋效應，但這仍是正確策略；即便短期盈餘心態常常驅動管理決策走向追逐收益，我們仍使資產負債表資產與資本期限更一致。簡化。我們持續精簡資本結構，強化投資等級指標的基礎與長期策略彈性。這延續了我們今年第一季開始的工作，包括針對 1.5 億美元名目金額曝險的避險交易，以及董事會將股利調整至可持續水準的決策。綜合而言，這些措施為穩定性、策略選擇權奠定正確基礎，並使公司能在景氣循環中為股東帶來一致的報酬。

As of June 30, 2025, net debt to total adjusted EBITDA stood at 7.7 times. Stabilized portfolio debt to stabilized portfolio adjusted EBITDA stood at 5.2 times. We maintained total liquidity of $172.2 million, including availability under our revolving credit facility. AFFO payout ratio stands at 77.8%, and after adjusting for non-cash interest income, the ratio was at 97.2%. Our unencumbered asset base remains strong, supporting both balance sheet flexibility and long-term borrowing capacity. As I mentioned last quarter, we continue to be rigorous in our approach to expenses. G&A for the full year is projected to be materially reduced year over year, consistent with our commitment to aligning costs with the current scale of our business, while preserving the resources necessary to execute on our strategy. The capital markets remain selective, and we are structuring our balance sheet to reflect that reality. With our debt private placement complete, our liquidity intact, and exercising the 12-month extension option on one of our term loans, we have the ability to remain patient and disciplined as the cycle evolves. We are reaffirming our full-year normalized FFO guidance of $1 to $1.10 per diluted share, supported by stable operating performance, which will overcome the updated third-party construction projection and a simplified capital base. With that, I'll now turn the call over to Shawn for his closing remarks. Thank you

截至 2025 年 6 月 30 日，淨負債對總調整後 EBITDA 為 7.7 倍。穩定化投資組合負債對穩定化投資組合調整後 EBITDA 為 5.2 倍。我們維持總流動性 1.722 億美元，包括循環信用額度下的可用額度。AFFO 配息率為 77.8%；若調整非現金利息收入後，該比率為 97.2%。我們的無擔保資產基礎仍然強勁，支撐資產負債表彈性與長期借款能力。如我在上季所提，我們在費用控管上仍維持嚴謹。全年 G&A 預計將較去年顯著下降，符合我們將成本與目前業務規模對齊的承諾，同時保留執行策略所需資源。資本市場仍具選擇性，我們正據此現實來建構資產負債表。在完成私募債、維持充足流動性，並對其中一筆定期貸款行使 12 個月展延選擇權後，我們有能力在景氣循環演變過程中保持耐心與紀律。我們重申全年標準化 FFO 指引為每股稀釋後 1.00 至 1.10 美元，並由穩定的營運表現支撐，該表現將足以抵消更新後第三方建造預估以及更精簡的資本基礎所帶來的影響。接下來我把電話交回 Shawn，請他做結語。謝謝

for joining us today and for your continued interest in Armada Hoffler. We remain focused on delivering strong operational performance and driving long-term value for our shareholders. As always, I want to recognize our dedicated team for their hard work and commitment. We look forward to keeping you updated on our progress in the quarters to come.

各位今天參與會議，並持續關注 Armada Hoffler。我們仍專注於交付強勁的營運表現，並為股東創造長期價值。一如既往，我要肯定我們敬業的團隊，感謝他們的辛勤付出與投入。我們期待在未來幾季持續向各位更新我們的進展。

Operator, we are now ready for the question-and-answer session.

主持人，我們現在準備進入問答環節。

(Operator Instructions) [Victor Vettis], Scotiabank.

(主持人指示) [Victor Vettis]，豐業銀行（Scotiabank）。

Good morning, everyone, and thank you for taking my question.

各位早安，謝謝讓我提問。

I'd like to ask about your decision to maintain guidance, which now implies a pretty wide range of 50 to 60 stands for the second half of 2025. So can you provide some details on potential scenarios that would lead to HH achieving the lower or upper end of this range?

我想詢問你們維持財測指引的決定；這現在意味著 2025 年下半年大約有 50 到 60 的相當寬幅區間。因此，你們能否提供一些細節，說明哪些可能情境會導致 HH 達到該區間的下緣或上緣？

Thank you, Victor.

謝謝你，Victor。

Yeah, we obviously we take a hard look at this and we maintain kind of a fixed eye on this model. We think that the range is appropriate. We do have, as you know, as we mentioned, the asset allied in Harbor Point coming on line and leasing up ahead of schedule. So we think that provides some upside. Certainly there are headwinds in the market broadly, but given the slight increase in the guidance on construction as well as the allied, we think it's proven to maintain guidance and look for that upside in terms of downside. Certainly, as I said, there are things out in the market that we can't control, but Matt and his team have done a nice job getting the balance sheet in position to defend against fluctuation in the interest rate market. So I think we're in pretty good shape.

是的，我們顯然會仔細檢視這件事，並且持續以相當固定的角度關注這個模型。我們認為這個區間是合適的。如你所知、也如我們提到的，Harbor Point 的 allied 資產已開始投入營運，且出租進度超前於原先時程。因此我們認為這帶來一些上行空間。當然，整體市場確實存在逆風，但考量到我們對在建工程指引的小幅上調以及 allied 的表現，我們認為維持指引是合理的，並且在下行風險中仍可期待一些上行。如我所說，市場上確實有些我們無法控制的因素，但 Matt 和他的團隊已經把資產負債表調整到能夠因應利率市場波動的位置。所以我認為我們的狀況相當不錯。

Matt, anything you want to add?

Matt，你有什麼想補充的嗎？

The only item that I would always caution when we're forecasting is the general construction work that we do. As that is a percent complete work, as those projects ebb and flow over their life will depend on when the timing on booking that work can be recognized.

我在做預測時唯一會一再提醒的是我們所做的一般建築工程。由於這是按完工百分比認列的工作，這些專案在其生命週期中進度起伏，將影響何時能認列並入帳這些工作。

Yeah, but I think to cap it off to the point, we've got some upside opportunities and faster lease up. Hence the reason we took the rest of the position, part of the reason we took the rest of the position in that asset at Harbor Point. So yeah, I think we feel good about the range.

是的，但總結來說，我們確實有一些上行機會，以及更快的出租進度。這也是我們在 Harbor Point 那項資產上把剩餘持分買下來的原因之一。所以，是的，我想我們對這個區間感覺良好。

We got it. Thank you. I'm going to just quickly follow up on this new office floor located by WeWork. Just trying to understand the potential downtime. For example, if you decide to subdivide it into smaller units, what it might be in terms of downtime.

了解了。謝謝。我想就 WeWork 旁邊這個新的辦公樓層快速追問一下。我想了解潛在的空置期。例如，如果你們決定把它分割成較小單元，空置期大概會是多久。

Sure. Well, I'll say the team did a nice job negotiating the downsize of WeWork. They do remain in one floor, which leaves us with 31,000 feet of vacancy. We predicted and broadcast this back in April of 2024. And we're fortunate to have continuous rent payment through the quarter here. I'll say this, we're early in the process as a result. We're just receiving the space back. There's an internal staircase there, some structural kind of enhancements that we need to make there. I would say from a marketing perspective, again, we're early in the process, but certainly you could see a demising of the space. Obviously, we hope we could get a full floor user, but I would say it's too early to call that shock, but we do have some interest and we'll continue to work on that.

當然。我會說團隊在談判 WeWork 縮減承租面積方面做得很好。他們仍保留一個樓層，這讓我們留下 31,000 平方英尺的空置面積。我們早在 2024 年 4 月就已預測並對外說明這件事。而且我們很幸運在本季期間仍持續收到租金付款。我想說的是，因為如此我們目前仍在流程的早期階段。我們才剛把空間收回。那裡有一座內部樓梯，以及一些我們需要進行的結構性強化。從行銷角度來看，同樣地，我們仍在早期階段，但你確實可能會看到把空間分隔（demising）。當然，我們希望能找到整層承租戶，但我會說現在還太早下定論；不過我們確實有一些興趣，並會持續推進。

Got it. Thank you.

了解。謝謝。

[Jenna Gallen], Bank of America.

[Jenna Gallen]，美國銀行。

morning. I was wondering if you could maybe provide some cap rates around your expectations for the multifamily asset acquisitions and then the cap rate expectations for the disposition that you have now in guidance.

早安。我想請問你們是否可以提供一下，對於多戶住宅資產收購的預期資本化率（cap rate），以及你們目前在指引中所提到的處分案之預期資本化率。

Sure.

當然。

Let's start with the multifamily. I think that we should be thinking about six-ish for the multifamilies combined. As I mentioned in my comments, we have an opportunity to create synergy between the assets there in Gainesville. One of them is 184 units and the other is 223 units. We have an opportunity to run them together should we choose to transact. We think that creates additional outside and additional efficiency there in Gainesville. In terms of the disposition, we've got 100% full asset there that we've owned for about 10 years. It's about 50% off at 50% retail and we think that the pricing is in the mid-sixes. The good news is two things. One, the right real estate decision could be to sell that asset because we would have a significant gain over the basis, especially given it's 100% full. If that is the case, we will, if it is the right choice, transact and redeploy those capital dollars somewhere that makes a creative sense. I think I look at the two separate business cases, although they could come together as one. I think our view is, can we make a deal that's a creative relative to our private placement benchmark, which is at the 583 level? That's how we do this.

先從多戶住宅開始。我認為對於合計的多戶住宅資產，大家可以用大約 6% 左右來思考。如我在評論中提到的，我們有機會在 Gainesville 的這些資產之間創造綜效。其中一個是 184 戶，另一個是 223 戶。如果我們選擇進行交易，我們有機會把它們一併營運管理。我們認為這能在 Gainesville 帶來額外的上行空間與額外的效率。至於處分方面，我們有一個已滿租（100%）的資產，持有大約 10 年。它大約是 50% 辦公、50% 零售，我們認為定價會在 6% 中段（mid-sixes）。好消息有兩點。第一，從不動產決策角度來看，出售該資產可能是正確的選擇，因為相對於帳面成本（basis）我們會有顯著的資本利得，尤其是在 100% 滿租的情況下。若確實如此，我們將在判斷為正確選擇時完成交易，並把這些資本資金重新配置到更具策略意義的地方。我把這視為兩個獨立的商業案例，雖然它們也可能合併成一個。我們的觀點是：我們能否做出一筆相對於我們私募配置基準（private placement benchmark，約在 5.83% 水準）更具吸引力的交易？這就是我們的做法。

(Operator Instructions) Rob Stevenson, Janney.

(接線員指示) Rob Stevenson，Janney。

Good morning, guys.

各位早安。

Matt, you used the unsecured notes to repay Southern Post and the Line. How are you thinking about the upcoming maturities of the Everly, Encore, and the TD term loan?

Matt，你們用無擔保票據來償還 Southern Post 和循環額度（Line）。你們如何看待即將到期的 Everly、Encore，以及 TD 定期貸款？

Yes, certainly, Rob. Good morning. First of all, as you would have called from my remarks, we have actually pulled the extension option on the TD term loan already back in May. We have another 12 months on that. We've kicked that can for another year. The Everly has a 12-month extension option. We do have some flexibility there. We're actually seeing some fairly constructive rates in the Freddie and Fannie markets there. Some of the life code money is actually around the 5% to 5.25%. That's a pretty good cost of debt for us in current market conditions. Then to further look forward with the flexibility of the debt private placement market, the maturities for 2026 will be a combination of bank loans, of maybe some life code money on the fixed debt, or potentially another private placement issuance. We are currently with the team working through making sure we get the right maturity ladders through that. As we in earnest really get into the meat and bones of this balance sheet transition to reduce that reliance on the derivative products and move away from the variable rate debt.

是的，當然，Rob。早安。首先，正如你從我剛才的說明中應該已聽到的，我們其實已在 5 月就行使了 TD 定期貸款的展期選擇權。因此我們又多了 12 個月。我們把到期時間再往後延了一年。Everly 也有 12 個月的展期選擇權。我們在那裡確實有一些彈性。我們也看到 Freddie 和 Fannie 市場出現一些相當具建設性的利率。部分壽險公司資金（life co money）的利率大約在 5% 到 5.25%。在目前市場條件下，這對我們而言是相當不錯的融資成本。再往前看，結合債務私募市場的彈性，2026 年到期的部分可能會由銀行貸款、部分壽險資金的固定利率債務，或是可能再發行一次私募來組合。我們目前正與團隊一起推進，確保能建立合適的到期梯（maturity ladder）。同時我們也正認真深入推動這次資產負債表的轉型，降低對衍生性商品的依賴，並逐步遠離浮動利率負債。

Okay, that's helpful.

好的，這很有幫助。

Then when you guys think about the Allied Harbor Point leasing up and any other sort of EBITDA enhancements that you guys are going to pick up in the back half of the year earnings-wise, were you expecting to finish 2025 from a leverage metric perspective at this point?

那麼，當你們考量 Allied Harbor Point 的出租進度，以及今年下半年在獲利面你們將取得的任何其他 EBITDA 提升時，就目前來看，你們原本預期在 2025 年結束時，槓桿指標大概會落在什麼水準？

Yeah, that's a good question. You would have seen that on net debt leverage metric tick up a little bit here at this quarter. That was because the Allied came on with the $90 million loan that we refinanced when we brought that on balance sheet. As EBITDA continues to come through, we expect that to come down into the seven, four, seven, five times range at the end of this year. That obviously depends on how quickly we can stabilize not just the Allied, but also Southern Post. What I would caution Rob on that when we're looking at these predictions is depending on the capital structures for these couple of assets that Shawn noted that may potentially come online from our mezzanine portfolio will obviously have an effect on that. We are, as we've committed to, trying to bring leverage down over the long run and right size, not just the quality of debt, but the amount of debt we have on our balance sheet.

是的，這是個好問題。你會看到本季淨負債槓桿指標小幅上升。那是因為 Allied 併入時，我們把那筆 9,000 萬美元貸款再融資，並將其納入資產負債表。隨著 EBITDA 持續貢獻，我們預期到今年年底會降到約 7.4 到 7.5 倍的區間。這當然取決於我們能多快讓 Allied 以及 Southern Post 不僅僅是穩定下來。我想提醒 Rob，在我們看這些預測時，Shawn 提到的那幾項資產，其資本結構若可能從我們的夾層投資組合中轉為上線，顯然會對此產生影響。正如我們所承諾的，我們正努力在長期降低槓桿並調整到適當水準，不只是改善債務品質，也包括我們資產負債表上的債務總量。

Okay. Then lastly, Shawn, beyond the 50-50 office retail asset that you talked about potentially selling, how are you in the board thinking about other strategic dispositions over the next six to 12 months? Is there a target that you're looking at in terms of dollar value? Is there also how are you guys also thinking about the mix between selling down apartments to redeploy into apartments, selling retail, selling one-offs like the South Bend asset, et cetera? How are you guys thinking about or how should we be thinking about you guys selling stuff over the next 12 months or so?

好的。最後，Shawn，除了你提到可能出售的那個 50/50 辦公/零售資產之外，董事會對未來 6 到 12 個月其他策略性處分是怎麼思考的？你們在金額（美元價值）方面有在看的目標嗎？另外，你們也如何看待出售組合的搭配：例如賣出部分公寓再把資金重新部署到公寓、賣零售，或是像 South Bend 資產這種單一資產的出售等等？你們是怎麼思考的，或我們應該如何看待你們在未來大約 12 個月會賣出哪些資產？

Thanks, Rob. Yeah, I think to answer your first question, there's not necessarily a target, but there is what we view this internally as is there an ability to isolate kind of dislocation in the market, right? And if an asset is at or near 100% lease, as you saw us do in the end of last year, in the end of 2024, and we believe the upside is limited and there's an attractive price to be had, we think the appropriate move is to take our chips and invest them where we can grow, in a grocery anchored center or otherwise that has a little bit of upside. And I think, again, there's not necessarily a target, but we are reviewing the list of assets that we own, i.e. the capital that we can control and looking for opportunities to lever a little bit of upside in that transaction. So yeah, I don't think there's a specific formula other than where do we see dislocation in the short run and can we take advantage of that?

謝謝你，Rob。是的，我想先回答你的第一個問題：不一定有一個明確的目標，但我們內部的看法是，是否有能力去辨識市場中的某種錯位（dislocation），對吧？如果某個資產的出租率已達或接近 100%，就像你看到我們在去年年底、也就是 2024 年底所做的那樣，而且我們認為上行空間有限、同時又能取得具吸引力的價格，我們認為適當的作法就是獲利了結，並把資金投到我們能成長的地方，例如以超市為主力店（grocery anchored）的商場或其他仍有一些上行空間的標的。再說一次，不一定有一個目標，但我們正在檢視我們所擁有的資產清單，也就是我們能掌控的資本，並尋找機會在交易中撬動一些上行空間。所以，是的，我不認為有特定公式；主要就是我們在短期內看到哪裡有錯位，以及我們能否加以利用。

Okay. Thanks, guys. Appreciate the time this morning. Yes, sir.

好的。謝謝各位。感謝今天早上的時間。好的，先生。

Thank you. There are no further questions at this time. I will now turn the call over to Mr. Shawn Tibbetts to close. Please go ahead. Thank

謝謝。目前沒有其他問題。我現在把電話會議交給 Shawn Tibbetts 先生做結語。請開始。謝

you, operator. I just want to say thank you again for your interest and your willingness to participate in this journey with us. Thank you to our employees, our investors, our new investors, all the folks who support us throughout this journey. Again, thank you for your time this morning. We look forward to updating you in future calls and future quarters.

謝謝你，接線員。我只想再次感謝各位的關注，以及願意與我們一起參與這段旅程。也感謝我們的員工、投資人、新投資人，以及所有在這段旅程中支持我們的朋友。再次感謝各位今天早上的時間。我們期待在未來的電話會議與未來的季度中向各位更新。

Ladies and gentlemen, this includes today's conference call. We thank you very much for participating. You may now disconnect. Have a great day.

各位女士、先生，今天的電話會議到此結束。非常感謝各位的參與。您現在可以掛線。祝您有美好的一天。