Armada Hoffler Properties Reports 55.2% Revenue Decline in Q2 2025

Armada Hoffler Properties, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $101.3 million, a decrease of 55.2% from $184.7 million in the same period last year. The decline was primarily attributed to a significant drop in general contracting and real estate services revenues, which fell from $116.8 million to $32.0 million. Rental revenues, however, increased slightly to $65.1 million from $63.3 million, reflecting a 2.9% year-over-year growth. The company recorded a net income of $6.7 million, or $0.04 per diluted share, compared to $3.3 million, or $0.00 per diluted share, in the prior year.

In terms of operational performance, Armada Hoffler's stabilized portfolio occupancy stood at 94.9% as of June 30, 2025, with retail occupancy at 94.2%, office at 96.3%, and multifamily at 94.0%. The company executed 16 commercial lease renewals and 10 new leases during the quarter, totaling 168,197 square feet. Notably, the company reported positive spreads on renewals across all segments, with retail renewals showing a 10.8% increase on a GAAP basis.

Strategically, Armada Hoffler completed the acquisition of the remaining partnership interest in the Harbor Point Parcel 4 project on June 10, 2025, consolidating it into its financial statements. This acquisition resulted in a gain of $6.9 million, which was reflected in the company's income statement. The company also reported a significant increase in its construction backlog, which reached $106.6 million as of June 30, 2025, compared to $80.4 million at the end of the previous quarter.

Financially, Armada Hoffler's total assets increased to $2.58 billion, up from $2.51 billion at the end of 2024. The company's total liabilities also rose to $1.72 billion, compared to $1.62 billion previously. The company maintained a strong liquidity position with $52.1 million in cash and cash equivalents and $114.5 million available under its revolving credit facility. Looking ahead, Armada Hoffler anticipates continued focus on enhancing its operational efficiency and expanding its portfolio, while managing its debt levels and maintaining compliance with financial covenants.