Armada Hoffler Properties Reports $7.5 Million Net Loss and $79.7 Million FFO for Fiscal Year 2025

Armada Hoffler Properties, Inc., a self-managed REIT, has released its 10-K filing for the fiscal year ended December 31, 2025. The company, which focuses on high-quality properties primarily in the Mid-Atlantic and Southeastern United States, reported a net loss attributable to common stockholders and OP Unitholders of $7.5 million, or $0.07 per diluted share. Funds from operations (FFO) attributable to common stockholders and OP Unitholders was $79.7 million, or $0.78 per diluted share, while normalized FFO was $110.4 million, or $1.08 per diluted share. As of December 31, 2025, the weighted average stabilized portfolio occupancy was 95.3%, with retail, office, and multifamily occupancies at 94.9%, 96.4%, and 94.6%, respectively.

Compared to the previous fiscal year, Armada Hoffler experienced positive spreads on lease renewals across its commercial segments. Retail renewals showed a 9.7% increase on a GAAP basis and 7.1% on a cash basis, while office renewals increased by 21.0% on a GAAP basis and 3.8% on a cash basis. The company executed 93 lease renewals and 35 new leases, totaling 858,509 net rentable square feet. Same-store net operating income (NOI) increased by 2.8% on a GAAP basis, and property segment NOI increased by 3.9% to $177.6 million. Dividends declared during the year totaled $0.56 per share.

Strategic developments during the year included the acquisition of the remaining partnership interest in the Harbor Point Parcel 4 project for an undisclosed amount and the acquisition of Solis Gainesville II for $33.7 million in cash and the repayment of the Company's $26.9 million preferred equity investment in the project. The company also sold $115.0 million in senior unsecured notes to institutional investors, using the proceeds to repay a $65 million construction loan and $48.0 million under the revolving credit facility. Additionally, Shawn J. Tibbetts was appointed as Chairman of the Board, effective January 1, 2026, as part of a succession plan.

Operational developments included the execution of an amendment to the operating agreement for The Allure at Edinburgh, providing the company with participating rights in the project’s expected residual profit. On February 16, 2026, Armada Hoffler announced a fundamental business restructuring, including exiting the multifamily property sector, divesting construction and real estate financing businesses, and launching AH Realty Trust, effective March 2, 2026. The company's competitive strengths include a diversified portfolio, an experienced management team, and a strategic focus on target markets in the Mid-Atlantic and Southeastern regions.