Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Armada Hoffler Properties, Inc. | d244121d8k.htm |
| EX-10.2 - EX-10.2 - Armada Hoffler Properties, Inc. | d244121dex102.htm |
| EX-10.1 - EX-10.1 - Armada Hoffler Properties, Inc. | d244121dex101.htm |
Exhibit 99.1
ARMADA HOFFLER PROPERTIES, INC.
PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
On January 8, 2016, Armada Hoffler Properties, Inc. (the “Company”), through certain subsidiaries of the Company, completed the previously announced sale of Richmond Tower, a 206,969 square foot office building located in Richmond, Virginia, to an unaffiliated third party for $78.0 million in cash.
The accompanying unaudited pro forma consolidated financial statements of the Company have been prepared to reflect the impact of the sale of Richmond Tower on the Company’s historical consolidated financial statements. The unaudited pro forma consolidated balance sheet as of September 30, 2015 is based on the Company’s historical consolidated balance sheet as of the same date and gives effect to the sale of Richmond Tower as if such sale had occurred on September 30, 2015. The unaudited pro forma consolidated statements of operations for the nine months ended September 30, 2015 and the year ended December 31, 2014 are based on the historical consolidated statements of operations of the Company for the same periods and give effect to the sale of Richmond Tower as if such sale had occurred on January 1, 2014. The Company has based the unaudited pro forma adjustments on available information and assumptions that the Company believes are reasonable.
The accompanying unaudited pro forma consolidated financial information is presented for illustrative purposes only and is not necessarily indicative of what the Company’s actual financial condition or results of operations would have been had the sale of Richmond Tower been completed on the dates indicated, nor does it purport to be indicative of the Company’s financial condition as of any future date or the Company’s results of operations for any future period.
The accompanying unaudited pro forma consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015 and the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.
F-1
ARMADA HOFFLER PROPERTIES, INC.
PRO FORMA CONSOLIDATED BALANCE SHEET
(In thousands, except par value and share data)
(Unaudited)
| Historical September 30, 2015 |
Richmond Tower | Pro Forma September 30, 2015 |
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| ASSETS | ||||||||||||
| Real estate investments: |
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| Income producing property |
$ | 649,029 | $ | (48,899 | )(a) | $ | 600,130 | |||||
| Held for development |
1,180 | — | 1,180 | |||||||||
| Construction in progress |
35,407 | — | 35,407 | |||||||||
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| 685,616 | (48,899 | ) | 636,717 | |||||||||
| Accumulated depreciation |
(129,996 | ) | 8,524 | (a) | (121,472 | ) | ||||||
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| Net real estate investments |
555,620 | (40,375 | ) | 515,245 | ||||||||
| Cash and cash equivalents |
15,191 | 77,219 | (b) | 92,410 | ||||||||
| Restricted cash |
4,243 | — | 4,243 | |||||||||
| Accounts receivable, net |
22,006 | (8,730 | )(a) | 13,276 | ||||||||
| Construction receivables, including retentions |
48,097 | — | 48,097 | |||||||||
| Construction contract costs and estimated earnings in excess of billings |
289 | — | 289 | |||||||||
| Other assets |
48,647 | (2,048 | )(a) | 46,599 | ||||||||
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| Total Assets |
$ | 694,093 | $ | 26,066 | $ | 720,159 | ||||||
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| LIABILITIES AND EQUITY |
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| Indebtedness |
$ | 420,145 | $ | — | $ | 420,145 | ||||||
| Accounts payable and accrued liabilities |
6,278 | (52 | )(a) | 6,226 | ||||||||
| Construction payables, including retentions |
54,159 | — | 54,159 | |||||||||
| Billings in excess of construction contract costs and estimated earnings |
2,512 | — | 2,512 | |||||||||
| Other liabilities |
25,350 | (41 | )(a) | 25,309 | ||||||||
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| Total Liabilities |
508,444 | (93 | ) | 508,351 | ||||||||
| Stockholders’ equity: |
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| Common stock, $0.01 par value, 500,000,000 shares authorized, 26,260,685 shares issued and outstanding |
262 | — | 262 | |||||||||
| Additional paid-in capital |
64,027 | — | 64,027 | |||||||||
| Distributions in excess of earnings |
(53,225 | ) | 16,238 | (c) | (36,987 | ) | ||||||
| Accumulated other comprehensive loss |
(972 | ) | — | (972 | ) | |||||||
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| Total stockholders’ equity |
10,092 | 16,238 | 26,330 | |||||||||
| Noncontrolling interests |
175,557 | 9,921 | (c) | 185,478 | ||||||||
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| Total Equity |
185,649 | 26,159 | (c) | 211,808 | ||||||||
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| Total Liabilities and Equity |
$ | 694,093 | $ | 26,066 | $ | 720,159 | ||||||
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See accompanying notes to unaudited pro forma consolidated financial statements.
F-2
ARMADA HOFFLER PROPERTIES, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share and per unit data)
(Unaudited)
| Historical Nine Months Ended September 30, 2015 |
Richmond Tower | Pro Forma Nine Months Ended September 30, 2015 |
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| Revenues |
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| Rental revenues |
$ | 59,401 | $ | (6,430 | )(d) | $ | 52,971 | |||||
| General contracting and real estate services revenues |
129,959 | — | 129,959 | |||||||||
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| Total revenues |
189,360 | (6,430 | ) | 182,930 | ||||||||
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| Expenses |
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| Rental expenses |
14,256 | (882 | )(d) | 13,374 | ||||||||
| Real estate taxes |
5,672 | (514 | )(d) | 5,158 | ||||||||
| General contracting and real estate services expenses |
125,141 | — | 125,141 | |||||||||
| Depreciation and amortization |
16,991 | (1,401 | )(d) | 15,590 | ||||||||
| General and administrative expenses |
6,297 | (3 | )(d) | 6,294 | ||||||||
| Acquisition, development and other pursuit costs |
1,050 | — | 1,050 | |||||||||
| Impairment charges |
23 | — | 23 | |||||||||
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| Total expenses |
169,430 | (2,800 | ) | 166,630 | ||||||||
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| Operating income |
19,930 | (3,630 | ) | 16,300 | ||||||||
| Interest expense |
(9,922 | ) | — | (9,922 | ) | |||||||
| Loss on extinguishment of debt |
(410 | ) | — | (410 | ) | |||||||
| Gain on real estate dispositions |
13,407 | — | 13,407 | |||||||||
| Other loss |
(182 | ) | — | (182 | ) | |||||||
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| Income before taxes |
22,823 | (3,630 | ) | 19,193 | ||||||||
| Income tax provision |
(83 | ) | — | (83 | ) | |||||||
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| Net income |
22,740 | (3,630 | ) | 19,110 | ||||||||
| Net income attributable to noncontrolling interests |
(8,426 | ) | 1,352 | (7,074 | ) | |||||||
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| Net income attributable to stockholders |
$ | 14,314 | $ | (2,278 | ) | $ | 12,036 | |||||
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| Net income per share and unit: |
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| Basic and diluted |
$ | 0.56 | $ | 0.47 | ||||||||
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| Weighted average outstanding: |
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| Common shares |
25,532 | 25,532 | ||||||||||
| Operating partnership units |
15,159 | 15,159 | ||||||||||
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| Basic and diluted |
40,691 | 40,691 | ||||||||||
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See accompanying notes to unaudited pro forma consolidated financial statements.
F-3
ARMADA HOFFLER PROPERTIES, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share and per unit data)
(Unaudited)
| Historical Year Ended December 31, 2014 |
Richmond Tower | Pro Forma Year Ended December 31, 2014 |
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| Revenues |
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| Rental revenues |
$ | 64,746 | $ | (8,589 | )(d) | $ | 56,157 | |||||
| General contracting and real estate services revenues |
103,321 | — | 103,321 | |||||||||
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| Total revenues |
168,067 | (8,589 | ) | 159,478 | ||||||||
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| Expenses |
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| Rental expenses |
16,667 | (1,096 | )(d) | 15,571 | ||||||||
| Real estate taxes |
5,743 | (685 | )(d) | 5,058 | ||||||||
| General contracting and real estate services expenses |
98,754 | — | 98,754 | |||||||||
| Depreciation and amortization |
17,569 | (1,840 | )(d) | 15,729 | ||||||||
| General and administrative expenses |
7,711 | (14 | )(d) | 7,697 | ||||||||
| Acquisition, development and other pursuit costs |
229 | — | 229 | |||||||||
| Impairment charges |
15 | — | 15 | |||||||||
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| Total expenses |
146,688 | (3,635 | ) | 143,053 | ||||||||
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| Operating income |
21,379 | (4,954 | ) | 16,425 | ||||||||
| Interest expense |
(10,648 | ) | — | (10,648 | ) | |||||||
| Gain on real estate dispositions |
2,211 | — | (e) | 2,211 | ||||||||
| Other loss |
(113 | ) | — | (113 | ) | |||||||
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| Income before taxes |
12,829 | (4,954 | ) | 7,875 | ||||||||
| Income tax provision |
(70 | ) | — | (70 | ) | |||||||
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| Net income |
12,759 | (4,954 | ) | 7,805 | ||||||||
| Net income attributable to noncontrolling interests |
(5,068 | ) | 1,995 | (3,073 | ) | |||||||
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| Net income attributable to stockholders |
$ | 7,691 | $ | (2,959 | ) | $ | 4,732 | |||||
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| Net income per share: |
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| Basic and diluted |
$ | 0.37 | $ | 0.23 | ||||||||
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| Net income per unit: |
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| Basic and diluted |
$ | 0.36 | $ | 0.22 | ||||||||
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| Weighted average outstanding: |
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| Common shares |
20,946 | 20,946 | ||||||||||
| Operating partnership units |
14,125 | 14,125 | ||||||||||
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| Basic and diluted |
35,071 | 35,071 | ||||||||||
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See accompanying notes to unaudited pro forma consolidated financial statements.
F-4
ARMADA HOFFLER PROPERTIES, INC.
Notes to Pro Forma Consolidated Financial Statements
(Unaudited)
| (a) | Reflects the elimination of the assets and liabilities directly attributable to Richmond Tower. |
| (b) | Represents the estimated net cash consideration received by the Company if the sale of Richmond Tower had been completed on September 30, 2015. |
| (c) | Represents the estimated gain on the sale of Richmond Tower if such sale had been completed on September 30, 2015 and the attribution of such gain to stockholders and noncontrolling interests. The estimated gain on sale was calculated as follows (in thousands): |
| Sale price |
$ | 78,000 | ||
| Less: property basis as of September 30, 2015 |
(50,916 | ) | ||
| Less: estimated closing costs |
(925 | ) | ||
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| Estimated gain on sale |
$ | 26,159 | ||
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| (d) | Reflects the elimination of the revenues and expenses directly attributable to Richmond Tower. |
| (e) | No estimated gain on the sale of Richmond Tower has been reflected in the pro forma consolidated statement of operations as such gain is nonrecurring in nature. |
F-5