Overview

* Armada Hoffler Q2 net income rises significantly

* Company's FFO and Normalized FFO decline yr/yr due to increased interest expenses

* Armada Hoffler maintains 2025 full-year Normalized FFO guidance

Outlook

* Company maintains 2025 full-year Normalized FFO guidance at $1.00 to $1.10 per share

* Company expects full-year 2025 Portfolio NOI between $173.6 mln and $176.0 mln

* Company projects full-year 2025 Construction Segment Gross Profit of $5.0 mln to $7.0 mln

* Company anticipates full-year 2025 Interest Income of $15.3 mln to $16.3 mln

Result Drivers

* CONSOLIDATION GAIN - Net income increased due to a $6.9 mln gain from consolidating the Harbor Point Parcel 4 project

* FFO DECLINE - Year-over-year decrease in FFO due to lower gross profit from contracting services, higher interest expenses, and losses from unconsolidated entities

* POSITIVE LEASING SPREADS - Positive office and retail releasing spreads contributed to the quarter's performance

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS $0.04

Q2 Net $3.90

Income mln

Q2 FFO Beat $19 mln $0.26 (5

Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the diversified reits peer group is "buy"

* Wall Street's median 12-month price target for Armada Hoffler Properties Inc ( AHH ) is $8.00, about 16.4% above its August 1 closing price of $6.69

* The stock recently traded at 71 times the next 12-month earnings vs. a P/E of 55 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)