Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 08, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'AHH | ' |
Entity Registrant Name | 'ARMADA HOFFLER PROPERTIES, INC. | ' |
Entity Central Index Key | '0001569187 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 19,163,623 |
Condensed_Combined_Balance_She
Condensed Combined Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Predecessor | |
Real estate investments: | ' | ' |
Income producing property | $404,742 | $350,814 |
Held for development | 7,081 | 3,926 |
Construction in progress | 29,091 | ' |
Gross real estate investments | 440,914 | 354,740 |
Accumulated depreciation | -101,920 | -92,454 |
Net real estate investments | 338,994 | 262,286 |
Cash and cash equivalents | 9,775 | 9,400 |
Restricted cash | 2,966 | 3,725 |
Accounts receivable, net | 17,846 | 17,423 |
Construction receivables, including retentions | 12,619 | 10,490 |
Construction contract costs and estimated earnings in excess of billings | 1,452 | 1,206 |
Due from affiliates | ' | 5,719 |
Other assets | 23,199 | 21,564 |
Total Assets | 406,851 | 331,813 |
Indebtedness: | ' | ' |
Secured debt | 247,356 | 334,438 |
Participating note | ' | 643 |
Accounts payable and accrued liabilities | 6,970 | 2,478 |
Construction payables, including retentions | 26,162 | 17,369 |
Billings in excess of construction contract costs and estimated earnings | 2,270 | 4,236 |
Due to affiliates | ' | 3,597 |
Due to related parties | 406 | ' |
Other liabilities | 15,736 | 10,393 |
Total Liabilities | 298,900 | 373,154 |
Stockholders' equity: | ' | ' |
Common stock, $0.01 par value, 500,000,000 shares authorized, 19,163,500 shares issued and outstanding as of September 30, 2013 | 192 | ' |
Additional paid-in capital | 1,010 | ' |
Distributions in excess of earnings | -46,195 | ' |
Total stockholders' and predecessor deficit | -44,993 | -41,341 |
Noncontrolling interests | 152,944 | ' |
Total Equity | 107,951 | -41,341 |
Total Liabilities and Equity | $406,851 | $331,813 |
Condensed_Combined_Balance_She1
Condensed Combined Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Predecessor | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 19,163,500 | 19,163,500 |
Common stock, shares outstanding | 19,163,500 | 19,163,500 |
Condensed_Combined_Statements_
Condensed Combined Statements of Income (Predecessor, USD $) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues | ' | ' | ' | ' |
Rental revenues | $14,899 | $13,318 | $42,528 | $40,314 |
General contracting and real estate services revenues | 21,896 | 13,631 | 63,143 | 40,655 |
Total revenues | 36,795 | 26,949 | 105,671 | 80,969 |
Expenses | ' | ' | ' | ' |
Rental expenses | 3,840 | 3,637 | 10,468 | 9,445 |
Real estate taxes | 1,317 | 1,200 | 3,777 | 3,592 |
General contracting and real estate services expenses | 20,907 | 12,707 | 60,868 | 38,200 |
Depreciation and amortization | 3,933 | 2,718 | 11,112 | 9,297 |
General and administrative expenses | 1,638 | 904 | 5,212 | 2,692 |
Impairment charges | ' | ' | 533 | ' |
Total expenses | 31,635 | 21,166 | 91,970 | 63,226 |
Operating income | 5,160 | 5,783 | 13,701 | 17,743 |
Interest expense | -2,598 | -4,174 | -9,802 | -12,518 |
Loss on extinguishment of debt | -1,127 | ' | -2,252 | ' |
Gain on acquisitions | ' | ' | 9,460 | ' |
Other (expense) income | -109 | 146 | 343 | 533 |
Income before taxes | 1,326 | 1,755 | 11,450 | 5,758 |
Income tax (provision) benefit | -74 | ' | 137 | ' |
Income from continuing operations | 1,252 | 1,755 | 11,587 | 5,758 |
Discontinued operations: | ' | ' | ' | ' |
Loss from discontinued operations | ' | ' | ' | -35 |
Gain on sale of real estate | ' | ' | ' | 25 |
Loss from discontinued operations | ' | ' | ' | -10 |
Net income | 1,252 | 1,755 | 11,587 | 5,748 |
Net income attributable to noncontrolling interests | -507 | ' | -3,936 | ' |
Net income attributable to stockholders | 745 | ' | 5,631 | ' |
Net income per share: | ' | ' | ' | ' |
Basic and diluted | $0.04 | ' | $0.30 | ' |
Weighted-average outstanding: | ' | ' | ' | ' |
Common shares | 19,164 | ' | 18,969 | ' |
Common units | 13,059 | ' | 13,059 | ' |
Basic and diluted | 32,223 | ' | 32,028 | ' |
Dividends declared per common share and unit | $0.16 | ' | $0.24 | ' |
Predecessor | ' | ' | ' | ' |
Discontinued operations: | ' | ' | ' | ' |
Net income | ' | ' | ($2,020) | ' |
Combined_Statements_of_Equity
Combined Statements of Equity (USD $) | Total | Predecessor | Common Stock | Additional paid-in capital | Distributions in excess of earnings and Predecessor deficit | Distributions in excess of earnings and Predecessor deficit | Total stockholders'and Predecessor deficit | Total stockholders'and Predecessor deficit | Noncontrolling interests |
In Thousands, except Share data | Predecessor | Predecessor | |||||||
Balance at Dec. 31, 2012 | ' | ($41,341) | ' | ' | ' | ($41,341) | ' | ($41,341) | ' |
Net income | ' | 2,020 | ' | ' | ' | 2,020 | ' | 2,020 | ' |
Contributions | ' | 2,218 | ' | ' | ' | 2,218 | ' | 2,218 | ' |
Distributions | ' | -12,399 | ' | ' | ' | -12,399 | ' | -12,399 | ' |
Balance at May. 12, 2013 | ' | -49,502 | ' | ' | ' | -49,502 | ' | -49,502 | ' |
Balance at May. 13, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from sale of common stock | 192,183 | ' | 190 | 191,993 | ' | ' | 192,183 | ' | ' |
Net proceeds from sale of common stock (in shares) | ' | ' | 19,003,750 | ' | ' | ' | ' | ' | ' |
Formation Transactions | -37,576 | ' | ' | -191,993 | -47,227 | 49,502 | -189,718 | ' | 152,142 |
Restricted stock award grants | ' | ' | 2 | -2 | ' | ' | ' | ' | ' |
Restricted stock award grants (in shares) | ' | ' | 159,955 | ' | ' | ' | ' | ' | ' |
Restricted stock award forfeitures | ' | ' | -205 | ' | ' | ' | ' | ' | ' |
Vesting of restricted stock awards | 1,012 | ' | ' | 1,012 | ' | ' | 1,012 | ' | ' |
Net income | 9,567 | ' | ' | ' | 5,631 | ' | 5,631 | ' | 3,936 |
Dividends declared | -7,733 | ' | ' | ' | -4,599 | ' | -4,599 | ' | -3,134 |
Balance (in shares) | 19,163,500 | ' | 19,163,500 | ' | ' | ' | ' | ' | ' |
Balance at Sep. 30, 2013 | $107,951 | ' | $192 | $1,010 | ($46,195) | ' | ($44,993) | ' | $152,944 |
Condensed_Combined_Statements_1
Condensed Combined Statements of Cash Flows (Predecessor, USD $) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
OPERATING ACTIVITIES | ' | ' |
Net income | $11,587 | $5,748 |
Loss from discontinued operations | ' | 10 |
Income from continuing operations | 11,587 | 5,758 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation of buildings and tenant improvements | 9,482 | 8,397 |
Amortization of deferred leasing costs and in-place lease intangibles | 1,630 | 900 |
Accrued straight-line rental revenue | -763 | -1,340 |
Amortization of lease incentives and above or below market rents | 537 | 549 |
Accrued straight-line ground rent expense | 273 | 248 |
Bad debt expense | 155 | 78 |
Non-cash stock compensation | 1,012 | ' |
Impairment charges | 533 | ' |
Non-cash interest expense | 482 | 437 |
Non-cash loss on extinguishment of debt | 542 | ' |
Gain on acquisitions | -9,460 | ' |
Change in the fair value of derivatives | -41 | -338 |
Income from real estate joint ventures | -210 | -139 |
Changes in operating assets and liabilities: | ' | ' |
Property assets | 6,438 | -1,944 |
Property liabilities | -563 | 1,769 |
Construction assets | -2,375 | 4,325 |
Construction liabilities | -1,071 | -10,207 |
Net cash provided by continuing operations | 18,188 | 8,493 |
Net cash used for discontinued operations | ' | -34 |
Net cash provided by operating activities | 18,188 | 8,459 |
INVESTING ACTIVITIES | ' | ' |
Development of real estate investments | -24,928 | -776 |
Tenant and building improvements | -2,452 | -2,041 |
Acquisitions of real estate investments, net of cash acquired | -2,106 | ' |
Government development grants | 300 | 400 |
Decrease in restricted cash | 455 | 170 |
Contributions to real estate joint ventures | -81 | ' |
Return of capital from real estate joint ventures | 511 | 280 |
Deferred leasing costs | -671 | -453 |
Leasing incentives | -243 | ' |
Net cash used for continuing operations | -29,215 | -2,420 |
Net cash provided by discontinued operations | ' | 497 |
Net cash used for investing activities | -29,215 | -1,923 |
FINANCING ACTIVITIES | ' | ' |
Proceeds from sale of common stock | 203,245 | ' |
Offering costs | -7,604 | ' |
Formation Transactions | -47,221 | ' |
Debt issuances and credit facility borrowings | 62,700 | 18,752 |
Debt and credit facility payments, including principal amortization | -184,606 | -22,467 |
Debt issuance costs | -1,825 | -350 |
Predecessor distributions, net | -10,709 | -7,500 |
Dividends | -2,578 | ' |
Net cash provided by (used for) continuing operations | 11,402 | -11,565 |
Net cash provided by discontinued operations | ' | ' |
Net cash provided by (used for) financing activities | 11,402 | -11,565 |
Net increase (decrease) in cash and cash equivalents | 375 | -5,029 |
Cash and cash equivalents, beginning of period | 9,400 | 13,449 |
Cash and cash equivalents, end of period | 9,775 | 8,420 |
Supplemental cash flow information: | ' | ' |
Cash paid for interest | 10,170 | 12,184 |
Decrease in distributions payable | ($528) | ($825) |
Business_and_Organization
Business and Organization | 9 Months Ended | ||
Sep. 30, 2013 | |||
Business and Organization | ' | ||
1 | Business and Organization | ||
Armada Hoffler Properties, Inc. (the “Company”) is the sole general partner of Armada Hoffler, L.P. (the “Operating Partnership”). The operations of the Company are carried on primarily through the Operating Partnership and wholly owned subsidiaries of the Operating Partnership. Both the Company and the Operating Partnership were formed on October 12, 2012 and commenced operations upon completion of the underwritten initial public offering of shares of the Company’s common stock (the “IPO”) and certain related formation transactions (the “Formation Transactions”) on May 13, 2013. | |||
Armada Hoffler Properties, Inc. Predecessor (the “Predecessor”) is not a single legal entity, but rather a combination of real estate and construction entities. The Predecessor is engaged in the development, construction, ownership and management of office, retail and multifamily properties in markets throughout the Mid-Atlantic United States. The entities comprising the Predecessor include: (i) the property development and asset management businesses of Armada Hoffler Holding Company, Inc. (“AH Holding”), (ii) the general commercial construction businesses of Armada Hoffler Construction Company and Armada Hoffler Construction Company of Virginia (collectively, “AH Construction”), (iii) controlling interests in entities that own 22 properties (seven office, 14 retail and one multifamily), (iv) controlling interests in entities undertaking the development of six properties (two office, two retail and two multifamily, collectively the “Development Pipeline”) and (v) non-controlling interests in entities that own one retail property and one multifamily property (collectively, the “Non-controlled Entities”). AH Holding, AH Construction, the controlling interests in the 22 real estate properties and the controlling interests in the Development Pipeline are referred to as the Controlled Entities. The Controlled Entities were under common ownership by their individual partners, members and stockholders and under common control by Daniel A. Hoffler prior to the IPO and the Formation Transactions. Mr. Hoffler had the ability to control each of the Controlled Entities as the primary beneficiary, the majority vote holder or through his interest as a general partner or managing member. The financial position and results of operations of the Controlled Entities have been combined in the Predecessor financial statements for the periods prior to the completion of the IPO and the Formation Transactions. The Predecessor accounted for its investments in the Non-controlled Entities under the equity method of accounting. | |||
Controlled Entities (Combined by the Predecessor) | |||
Office Properties | Location | ||
Armada Hoffler Tower | Virginia Beach, VA | ||
Richmond Tower | Richmond, VA | ||
One Columbus | Virginia Beach, VA | ||
Two Columbus | Virginia Beach, VA | ||
Oyster Point | Newport News, VA | ||
Virginia Natural Gas | Virginia Beach, VA | ||
Sentara Williamsburg | Williamsburg, VA | ||
Retail Properties | Location | ||
249 Central Park Retail | Virginia Beach, VA | ||
South Retail | Virginia Beach, VA | ||
Studio 56 Retail | Virginia Beach, VA | ||
Commerce Street Retail | Virginia Beach, VA | ||
Fountain Plaza Retail | Virginia Beach, VA | ||
Dick’s at Town Center | Virginia Beach, VA | ||
Broad Creek Shopping Center | Norfolk, VA | ||
North Point Center | Durham, NC | ||
Hanbury Village | Chesapeake, VA | ||
Gainsborough Square | Chesapeake, VA | ||
Parkway Marketplace | Virginia Beach, VA | ||
Harrisonburg Regal | Harrisonburg, VA | ||
Courthouse 7-Eleven | Virginia Beach, VA | ||
Tyre Neck Harris Teeter | Portsmouth, VA | ||
Multifamily Property | Location | ||
The Cosmopolitan | Virginia Beach, VA | ||
Development Pipeline | Location | ||
4525 Main Street(1) | Virginia Beach, VA | ||
Encore Apartments(2) | Virginia Beach, VA | ||
Whetstone Apartments(3) | Durham, NC | ||
Sandbridge Commons | Virginia Beach, VA | ||
Brooks Crossing | Newport News, VA | ||
Greentree Shopping Center | Chesapeake, VA | ||
-1 | Previously referred to as Main Street Office. | ||
-2 | Previously referred to as Main Street Apartments. | ||
-3 | Previously referred to as Jackson Street Apartments. | ||
General Contracting and Real Estate Services | |||
AH Holding | AH Construction | ||
Non-controlled Entities (Accounted for under the equity method by the Predecessor) | |||
Retail Property | Location | ||
Bermuda Crossroads | Chester, VA | ||
Multifamily Property | Location | ||
Smith’s Landing | Blacksburg, VA | ||
Initial Public Offering and Formation Transactions | |||
On May 13, 2013, the Company completed the IPO of 16,525,000 shares of common stock priced at $11.50 per share. On May 22, 2013, the underwriters of the IPO exercised their overallotment option in full to purchase an additional 2,478,750 shares at the IPO price of $11.50 per share. Proceeds from the IPO to the Company after deducting the underwriting discount were approximately $203.2 million. The common shares are listed on the New York Stock Exchange under the symbol “AHH” and began trading on May 8, 2013. The Company contributed the net proceeds from the IPO to the Operating Partnership in exchange for common units in the Operating Partnership. The Operating Partnership repaid approximately $150.0 million of outstanding indebtedness and paid approximately $47.2 million as partial consideration to prior investors in connection with the Formation Transactions. | |||
Pursuant to the Formation Transactions, the Operating Partnership: (i) acquired 100% of the interests in the Controlled Entities and the Non-controlled Entities, (ii) succeeded to the ongoing construction and development businesses of AH Holding and AH Construction, (iii) assumed asset management of certain of the properties acquired from the Predecessor, (iv) succeeded to the third party asset management business of AH Holding, (v) succeeded to the projects in the Development Pipeline, (vi) received options to acquire nine parcels of developable land from the Predecessor and (vii) entered into a contribution agreement to acquire Liberty Apartments, a 197-unit multifamily property located in Newport News, VA, upon satisfaction of certain conditions and transferability restrictions including completion of the project’s construction by AH Construction. | |||
The Company accounted for the contribution or acquisition of interests in the Controlled Entities as transactions among entities under common control because Mr. Hoffler had the ability to control each of the Controlled Entities as previously described. As a result, the contribution or acquisition of interests in each of the Controlled Entities was accounted for at the Predecessor’s historical cost. The acquisitions of interests in the Non-controlled Entities were accounted for as purchases at fair value under the acquisition method of accounting. | |||
On May 13, 2013, the Operating Partnership, as borrower, and the Company, as parent guarantor, entered into a $100.0 million senior secured revolving credit facility. Subject to the satisfaction of certain conditions, the Operating Partnership has the option to increase the borrowing capacity under the revolving credit facility to $250.0 million. The revolving credit facility has a three-year term with an initial maturity date of May 13, 2016 and bears interest between LIBOR plus 1.60% and LIBOR plus 2.20%. The Operating Partnership has the option to extend the term to May 12, 2017. Upon completion of the IPO, the Operating Partnership borrowed $40.0 million under the revolving credit facility to fund a portion of the consideration payable in connection with the completion of the Formation Transactions, repay existing lines of credit and certain debt relating to the projects in the Development Pipeline and repay existing indebtedness relating to certain properties acquired in connection with the Formation Transactions. | |||
Because of the timing of the IPO and the Formation Transactions, the Company’s financial condition as of December 31, 2012 and results of operations for the three and nine months ended September 30, 2012 reflect the financial condition and results of operations of the Predecessor. The Company’s results of operations for the nine months ended September 30, 2013 reflect the results of operations of the Predecessor together with the Company, while the financial condition as of September 30, 2013 and the results of operations for the three months ended September 30, 2013 reflect those solely of the Company. References in these notes to condensed consolidated and combined financial statements to “Armada Hoffler” signify the Company for the period after the completion of the IPO and the Formation Transactions on May 13, 2013 and the Predecessor for all prior periods. | |||
Federal Income Taxes | |||
The Company intends to elect to be taxed and to operate in a manner that will allow it to qualify as a real estate investment trust for federal income tax purposes commencing with the taxable year ending December 31, 2013. | |||
Emerging Growth Company Status | |||
The Company qualifies as an emerging growth company (“EGC”) pursuant to the Jumpstart Our Business Startups Act. An EGC may choose to take advantage of the extended private company transition period provided for complying with new or revised accounting standards that may be issued by the Financial Accounting Standards Board or the U.S. Securities and Exchange Commission (the “SEC”). The Company has elected to opt out of such extended transition period. This election is irrevocable. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | |
Sep. 30, 2013 | ||
Summary of Significant Accounting Policies | ' | |
2 | Summary of Significant Accounting Policies | |
Principles of Consolidation and Combination and Basis of Presentation | ||
The accompanying consolidated and combined financial statements were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the financial position and results of operations of the Company, the Operating Partnership and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. | ||
The financial position and results of operations of the entities comprising the Predecessor have been combined because they were under the common control of Mr. Hoffler and under the common management by Armada Hoffler. All significant intercompany transactions and balances have been eliminated in combination. | ||
In the opinion of management, the consolidated and combined financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition and results of operations for the interim periods presented. | ||
The accompanying consolidated and combined financial statements were prepared in accordance with the requirements for interim financial information. Accordingly, these interim financial statements have not been audited and exclude certain disclosures required for annual financial statements. Also, the operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These interim financial statements should be read in conjunction with the audited combined financial statements of the Predecessor for the year ended December 31, 2012, included in the Company’s final prospectus dated May 7, 2013 and filed with the SEC on May 9, 2013 (SEC File No. 333-187513). | ||
Use of Estimates | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities as of the date of the financial statements. Such estimates are based on management’s best judgment, after considering past, current and expected events and economic conditions. Actual results could differ from management’s estimates. | ||
Significant Accounting Policies | ||
The accompanying consolidated and combined financial statements were prepared using the accounting principles described in the Company’s final prospectus dated May 7, 2013 (SEC File No. 333-187513). | ||
Income Taxes | ||
For periods prior to the completion of the IPO and the Formation Transactions on May 13, 2013, no provision was made for U.S. federal, state or local income taxes because profits and losses of the Predecessor flowed through to its respective partners, members and shareholders who were individually responsible for reporting such amounts. | ||
For periods subsequent to the completion of the IPO and the Formation Transactions, the taxable REIT subsidiaries (“TRS”) of the Operating Partnership are subject to federal, state and local corporate income taxes. The Operating Partnership conducts its development and construction businesses through the TRS. The related income tax provision or benefit attributable to the profits or losses of the TRS is reflected in the consolidated and combined financial statements. | ||
The Company uses the liability method of accounting for deferred income tax in accordance with GAAP. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the carrying value of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the statutory rates expected to be applied in the periods in which those temporary differences are settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period of the change. A valuation allowance is recorded on the Company’s deferred tax assets when it is more likely than not that such assets will not be realized. When evaluating the realizability of the Company’s deferred tax assets, all evidence, both positive and negative is evaluated. Items considered in this analysis include the ability to carryback losses, the reversal of temporary differences, tax planning strategies and expectations of future earnings. | ||
Under GAAP, the amount of tax benefit to be recognized is the amount of benefit that is more likely than not to be sustained upon examination. Management analyzes its tax filing positions in the U.S. federal, state and local jurisdictions where it is required to file income tax returns for all open tax years. If, based on this analysis, management determines that uncertainties in tax positions exist, a liability is established. The Company recognizes accrued interest and penalties related to unrecognized tax positions in the provision for income taxes. If recognized, the entire amount of unrecognized tax positions would be recorded as a reduction to the provision for income taxes. | ||
Noncontrolling Interests | ||
Upon completion of the IPO and the Formation Transactions, the Operating Partnership issued 13,059,365 common units of limited partnership interest to the Predecessor’s prior investors as partial consideration for the contribution of their interests in the Predecessor to the Operating Partnership, which the Company recognized at fair value. Noncontrolling interests in the Company represent common units of the Operating Partnership held by the Predecessor’s prior investors. As of September 30, 2013, the Company held a 59.5% interest in the Operating Partnership. As the sole general partner and the majority interest holder, the Company consolidates the financial position and results of operations of the Operating Partnership. | ||
Holders of common units may not transfer their units without the Company’s prior consent as general partner of the Operating Partnership. Beginning on the first anniversary of the completion of the IPO and the Formation Transactions, common unitholders may tender their units for redemption by the Operating Partnership in exchange for cash equal to the market price of shares of the Company’s common stock at the time of redemption or, at the Company’s option and sole discretion, for shares of common stock on a one-for-one basis. Accordingly, the Company presents the common units of the Operating Partnership held by the Predecessor’s prior investors as noncontrolling interests within equity in the consolidated balance sheet. | ||
Dividends | ||
On July 11, 2013, the Company paid cash dividends of approximately $1.5 million to common stockholders and approximately $1.1 million to common unitholders, representing $0.08 per share or unit. | ||
On August 9, 2013, the Company’s Board of Directors declared a cash dividend of $0.16 per share or unit payable on October 10, 2013 to common stockholders and common unitholders of record on October 1, 2013. On October 10, 2013, the Company paid cash dividends of approximately $3.1 million to common stockholders and approximately $2.1 million to common unitholders. The aggregate $5.2 million dividend payable as of September 30, 2013 is presented within other liabilities in the condensed consolidated balance sheet. | ||
Net Income Per Share | ||
The Company calculates net income per share based upon the weighted average shares outstanding during the period beginning May 13, 2013. Diluted net income per share is calculated after giving effect to all potential dilutive shares outstanding during the period. There were no potential dilutive shares outstanding during the three or nine months ended September 30, 2013. As a result, basic and diluted outstanding shares were the same. |
Segments
Segments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segments | ' | ||||||||||||||||
3 | Segments | ||||||||||||||||
Segment information is prepared on the same basis that Armada Hoffler’s management reviews information for operational decision-making purposes. Management evaluates the performance of each of Armada Hoffler’s properties individually and aggregates such properties into segments based on their economic characteristics and classes of tenants. Armada Hoffler operates in four business segments: (i) office real estate, (ii) retail real estate, (iii) multifamily residential real estate and (iv) general contracting and real estate services. Armada Hoffler’s office properties provide office space for various types of businesses and professions. Armada Hoffler’s retail properties are a diverse mix of: (i) retail shopping centers typically anchored by large, nationally recognized tenants, (ii) retail centers located in the Virginia Beach Town Center and (iii) single-tenant properties. Armada Hoffler’s multifamily residential properties provide rental housing in Virginia Beach, VA and Blacksburg, VA. Armada Hoffler’s general contracting and real estate services business develops and builds properties for its own account and also provides construction and development services to related parties and third-party clients. | |||||||||||||||||
Net operating income (segment revenues minus segment expenses) is the measure used by Armada Hoffler’s chief operating decision-maker to assess segment performance. Net operating income is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, net operating income should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate net operating income in the same manner. Armada Hoffler considers net operating income to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of Armada Hoffler’s real estate and construction businesses. | |||||||||||||||||
Net operating income of Armada Hoffler’s reportable segments for the three and nine months ended September 30, 2013 and 2012 was as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Unaudited) | |||||||||||||||||
Office real estate | |||||||||||||||||
Rental revenues | $ | 6,364 | $ | 6,194 | $ | 19,270 | $ | 19,153 | |||||||||
Property expenses | 2,081 | 2,271 | 5,967 | 5,921 | |||||||||||||
Segment net operating income | 4,283 | 3,923 | 13,303 | 13,232 | |||||||||||||
Retail real estate | |||||||||||||||||
Rental revenues | 5,683 | 5,297 | 16,071 | 15,584 | |||||||||||||
Property expenses | 1,745 | 1,618 | 5,054 | 4,624 | |||||||||||||
Segment net operating income | 3,938 | 3,679 | 11,017 | 10,960 | |||||||||||||
Multifamily residential real estate | |||||||||||||||||
Rental revenues | 2,852 | 1,827 | 7,187 | 5,577 | |||||||||||||
Property expenses | 1,331 | 946 | 3,224 | 2,453 | |||||||||||||
Segment net operating income | 1,521 | 881 | 3,963 | 3,124 | |||||||||||||
General contracting and real estate services | |||||||||||||||||
Segment revenues | 21,896 | 13,631 | 63,143 | 40,655 | |||||||||||||
Segment expenses | 20,907 | 12,707 | 60,868 | 38,200 | |||||||||||||
Segment net operating income | 989 | 924 | 2,275 | 2,455 | |||||||||||||
Other | — | (2 | ) | — | (39 | ) | |||||||||||
Net operating income | $ | 10,731 | $ | 9,405 | $ | 30,558 | $ | 29,732 | |||||||||
General contracting and real estate services revenues for the three and nine months ended September 30, 2013 exclude revenue related to intercompany construction contracts of approximately $13.3 million and $18.9 million, respectively. General contracting and real estate services expenses for the three and nine months ended September 30, 2013 exclude expenses related to intercompany construction contracts of approximately $13.1 million and $18.7 million, respectively. | |||||||||||||||||
General contracting and real estate services revenues for the three and nine months ended September 30, 2012 exclude revenue related to intercompany construction contracts of approximately $0.2 million and $1.0 million, respectively. General contracting and real estate services expenses for the three and nine months ended September 30, 2012 exclude expenses related to intercompany construction contracts of approximately $0.2 million and $1.0 million, respectively. | |||||||||||||||||
The following table reconciles net operating income to net income for the three and nine months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Unaudited) | |||||||||||||||||
Net operating income | $ | 10,731 | $ | 9,405 | $ | 30,558 | $ | 29,732 | |||||||||
Depreciation and amortization | (3,933 | ) | (2,718 | ) | (11,112 | ) | (9,297 | ) | |||||||||
General and administrative expenses | (1,638 | ) | (904 | ) | (5,212 | ) | (2,692 | ) | |||||||||
Impairment charges | — | — | (533 | ) | — | ||||||||||||
Interest expense | (2,598 | ) | (4,174 | ) | (9,802 | ) | (12,518 | ) | |||||||||
Loss on extinguishment of debt | (1,127 | ) | — | (2,252 | ) | — | |||||||||||
Gain on acquisitions | — | — | 9,460 | — | |||||||||||||
Other income (expense) | (109 | ) | 146 | 343 | 533 | ||||||||||||
Results from discontinued operations | — | — | — | (10 | ) | ||||||||||||
Income tax benefit (expense) | (74 | ) | — | 137 | — | ||||||||||||
Net income | $ | 1,252 | $ | 1,755 | $ | 11,587 | $ | 5,748 | |||||||||
General and administrative expenses represent costs not directly associated with the operation and management of Armada Hoffler’s real estate properties. General and administrative expenses include office personnel salaries and benefits, bank fees, accounting fees and other office expenses. For the three and nine months ended September 30, 2013, general and administrative expenses include non-cash stock compensation of $0.2 million and $1.0 million, respectively. | |||||||||||||||||
During the nine months ended September 30, 2013, the Company recognized $0.5 million of impairment charges representing unamortized leasing assets related to two vacated retail tenants. | |||||||||||||||||
Rental revenues of Armada Hoffler’s reportable segments for the three and nine months ended September 30, 2013 and 2012 comprised the following (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Unaudited) | |||||||||||||||||
Minimum rents | |||||||||||||||||
Office | $ | 6,059 | $ | 5,972 | $ | 18,264 | $ | 17,919 | |||||||||
Retail | 4,759 | 4,376 | 13,733 | 13,072 | |||||||||||||
Multifamily | 2,370 | 1,621 | 6,060 | 4,814 | |||||||||||||
Percentage rents(1) | |||||||||||||||||
Office | — | — | 104 | 109 | |||||||||||||
Retail | 35 | 40 | 88 | 96 | |||||||||||||
Multifamily | 21 | 30 | 84 | 93 | |||||||||||||
Other(2) | |||||||||||||||||
Office | 304 | 222 | 901 | 1,125 | |||||||||||||
Retail | 890 | 881 | 2,251 | 2,416 | |||||||||||||
Multifamily | 461 | 176 | 1,043 | 670 | |||||||||||||
Rental revenues | $ | 14,899 | $ | 13,318 | $ | 42,528 | $ | 40,314 | |||||||||
-1 | Percentage rents are based on tenants’ sales. | ||||||||||||||||
-2 | Other rental revenue includes cost reimbursements for real estate taxes, property insurance and common area maintenance as well as termination fees. | ||||||||||||||||
Property expenses of Armada Hoffler’s reportable segments for the three and nine months ended September 30, 2013 and 2012 comprised the following (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Unaudited) | |||||||||||||||||
Rental expenses | |||||||||||||||||
Office | $ | 1,536 | $ | 1,740 | $ | 4,341 | $ | 4,303 | |||||||||
Retail | 1,230 | 1,134 | 3,593 | 3,239 | |||||||||||||
Multifamily | 1,074 | 761 | 2,534 | 1,896 | |||||||||||||
Other | — | 2 | — | 7 | |||||||||||||
Total | $ | 3,840 | $ | 3,637 | $ | 10,468 | $ | 9,445 | |||||||||
Real estate taxes | |||||||||||||||||
Office | $ | 545 | $ | 531 | $ | 1,626 | $ | 1,618 | |||||||||
Retail | 515 | 484 | 1,461 | 1,385 | |||||||||||||
Multifamily | 257 | 185 | 690 | 557 | |||||||||||||
Other | — | — | — | 32 | |||||||||||||
Total | $ | 1,317 | $ | 1,200 | $ | 3,777 | $ | 3,592 | |||||||||
Property expenses | $ | 5,157 | $ | 4,837 | $ | 14,245 | $ | 13,037 | |||||||||
Rental expenses represent costs directly associated with the operation and management of Armada Hoffler’s real estate properties. Rental expenses include asset management fees, property management fees, repairs and maintenance, insurance and utilities. |
Real_Estate_Investments
Real Estate Investments | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Real Estate Investments | ' | ||||||||
4 | Real Estate Investments | ||||||||
Armada Hoffler’s real estate investments comprised the following as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(Unaudited) | |||||||||
Land | $ | 37,812 | $ | 24,511 | |||||
Land improvements | 12,567 | 11,543 | |||||||
Buildings and improvements | 364,439 | 316,596 | |||||||
Development costs | 4,173 | 2,090 | |||||||
Construction in progress | 21,923 | — | |||||||
440,914 | 354,740 | ||||||||
Accumulated depreciation | (101,920 | ) | (92,454 | ) | |||||
Net real estate investments | $ | 338,994 | $ | 262,286 | |||||
As of September 30, 2013 and December 31, 2012, land includes approximately $2.3 million and $1.8 million, respectively, for the 4525 Main Street and Encore Apartments development projects. Development and construction costs capitalized in connection with the 4525 Main Street and Encore Apartments projects are presented as construction in progress as of September 30, 2013. | |||||||||
As discussed in Notes 1 and 9, the Operating Partnership acquired a controlling interest in Bermuda Crossroads and Smith’s Landing on May 13, 2013. As of September 30, 2013, land includes approximately $5.5 million related to Bermuda Crossroads. | |||||||||
As of September 30, 2013, land includes approximately $2.6 million related to the Whetstone Apartments project, which Armada Hoffler purchased on June 4, 2013. Development and construction costs capitalized in connection with the Whetstone Apartments project are presented as construction in progress as of September 30, 2013. | |||||||||
As of September 30, 2013, land includes approximately $5.2 million related to the Sandbridge Commons project, which Armada Hoffler purchased on August 27, 2013. |
Indebtedness
Indebtedness | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Indebtedness | ' | ||||||||
5 | Indebtedness | ||||||||
On January 3, 2013, Armada Hoffler modified the Main Street Land loan to extend the maturity date from January 5, 2013 to April 3, 2013. On March 25, 2013, Armada Hoffler modified the Main Street Land loan to extend the term to July 3, 2013, on which date the Company repaid the outstanding balance of the loan in full. | |||||||||
On January 16, 2013, Armada Hoffler modified the Virginia Natural Gas loan to lower the interest rate floor from 4.00% to 3.00%. | |||||||||
On February 19, 2013, Armada Hoffler modified the Gainsborough Square loan to extend the maturity date from December 28, 2013 to January 28, 2014. | |||||||||
On April 15, 2013, Armada Hoffler borrowed an additional $2.7 million on Broad Creek Shopping Center Note 2. | |||||||||
In connection with the IPO and Formation Transactions, the Company used proceeds from the IPO and the revolving credit facility to repay the following debt (in thousands): | |||||||||
Armada Hoffler Tower | $ | 38,813 | |||||||
Richmond Tower | 46,523 | ||||||||
Two Columbus | 18,785 | ||||||||
Virginia Natural Gas | 5,457 | ||||||||
Sentara Williamsburg | 10,915 | ||||||||
North Point Center Note 3 | 9,242 | ||||||||
Gainsborough Square | 9,732 | ||||||||
Parkway Marketplace | 5,669 | ||||||||
Courthouse 7-Eleven Note 1 | 1,485 | ||||||||
Properties unencumbered | $ | 146,621 | |||||||
Broad Creek Shopping Center Note 2 | 2,697 | ||||||||
Oyster Point Participation Note | 643 | ||||||||
Other debt repayments | 3,340 | ||||||||
Total | $ | 149,961 | |||||||
During the nine months ended September 30, 2013, the Company recognized a $1.1 million loss on extinguishment of debt representing $0.6 million of fees and $0.5 million of unamortized debt issuance costs associated with the debt repaid in connection with the IPO and Formation Transactions. | |||||||||
As discussed in Note 1, upon completion of the IPO, the Operating Partnership borrowed $40.0 million under the revolving credit facility to fund a portion of the consideration payable in connection with the completion of the Formation Transactions, repay existing lines of credit and certain debt relating to the projects in the Development Pipeline and repay existing indebtedness relating to certain properties acquired in connection with the Formation Transactions. The revolving credit facility has a three-year term with an initial maturity date of May 13, 2016 and bears interest between LIBOR plus 1.60% and LIBOR plus 2.20%. The Operating Partnership has the option to extend the maturity date to May 12, 2017. The Operating Partnership incurred approximately $1.8 million of costs in connection with the revolving credit facility. | |||||||||
On July 16, 2013, the Operating Partnership borrowed an additional $15.0 million under the revolving credit facility and defeased the One Columbus loan on July 17, 2013 for $14.9 million, including costs of $1.0 million. The Company recognized a $1.0 million loss on extinguishment of debt representing fees and unamortized debt issuance costs. | |||||||||
On July 30, 2013, the Company closed on a $63.0 million construction loan to fund the 4525 Main Street and Encore Apartments development projects. The construction loan bears interest at LIBOR plus 1.95% and matures on January 30, 2017. As of September 30, 2013, the Company did not have any amounts outstanding on the construction loan. | |||||||||
As of September 30, 2013, the Operating Partnership had $45.0 million outstanding and $55.0 million available on the revolving credit facility for which Armada Hoffler Tower, Richmond Tower, Virginia Natural Gas and Sentara Williamsburg collectively served as the borrowing base collateral. As of September 30, 2013, the interest rate on the revolving credit facility was 1.93%. | |||||||||
Subsequent to September 30, 2013: | |||||||||
On October 8, 2013, the Company borrowed an additional $15.0 million under the revolving credit facility, resulting in an outstanding balance of $60.0 million on the revolving credit facility. | |||||||||
On October 8, 2013, the Company closed on an $18.5 million construction loan to fund the Whetstone Apartments development project in Durham, NC. The construction loan bears interest at LIBOR plus 1.90% and matures on October 8, 2016, with a one-year extension option. As of the date of this filing, the Company did not have any amounts outstanding on this construction loan. | |||||||||
On October 10, 2013, the Operating Partnership increased the aggregate capacity under the revolving credit facility to $155.0 million by adding the following six properties to the borrowing base collateral: i) One Columbus, (ii) Two Columbus, (iii) a portion of North Point Center, (iv) Gainsborough Square, (v) Parkway Marketplace and (vi) Courthouse 7-Eleven. | |||||||||
On October 11, 2013, the Operating Partnership repaid the Bermuda Crossroads loan for approximately $10.8 million. | |||||||||
On October 25, 2013, the Operating Partnership amended Broad Creek Shopping Center Notes 1, 2 and 3 to lower the interest rates to LIBOR plus 2.25% and extend the maturity dates to October 31, 2018. The lender also agreed to make Broad Creek Shopping Center Notes 1, 2 and 3 each non-recourse loans. | |||||||||
On October 31, 2013, the Operating Partnership amended the Commerce Street Retail loan, Hanbury Village Note 2 and the Tyre Neck Harris Teeter loan to lower the interest rates to LIBOR plus 2.25% and extend the maturity dates to October 31, 2018. The Operating Partnership collectively prepaid approximately $1.4 million of principal on these three loans. The lender also agreed to make the Commerce Street Retail loan, Hanbury Village Note 2 and the Tyre Neck Harris Teeter loan each non-recourse loans. | |||||||||
As of the date of this filing, the Company had approximately $5.9 million outstanding on the 4525 Main Street and Encore Apartments construction loans. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||||||||||
6 | Derivative Financial Instruments | ||||||||||||||||||||||||
Armada Hoffler may enter into interest rate derivatives to manage exposure to interest rate risks. Armada Hoffler does not use derivative financial instruments for trading or speculative purposes and has not designated any of its derivatives as hedges for accounting purposes. As a result, changes in the fair value of derivatives are recognized currently within other income in the consolidated and combined statements of operations. | |||||||||||||||||||||||||
On September 1, 2013, Armada Hoffler executed three interest rate cap agreements with a total notional amount of approximately $103.0 million, strike prices ranging from 1.50% to 3.50% and terms ending on March 1, 2016. The total premium paid to execute the three interest rate cap agreements was approximately $0.2 million. | |||||||||||||||||||||||||
Armada Hoffler’s derivatives comprised the following as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||||||
Amount | Gain | Loss | Amount | Gain | Loss | ||||||||||||||||||||
Pay fixed interest rate swaps | $ | 710 | $ | — | $ | (18 | ) | $ | 11,721 | $ | — | $ | (239 | ) | |||||||||||
Interest rate caps | 112,232 | 97 | — | 9,356 | 9 | — | |||||||||||||||||||
Total | $ | 112,942 | $ | 97 | $ | (18 | ) | $ | 21,077 | $ | 9 | $ | (239 | ) | |||||||||||
The changes in the fair value of Armada Hoffler’s derivatives during the three and nine months ended September 30, 2013 and 2012 comprised the following (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Pay fixed interest rate swaps | $ | (2 | ) | $ | 122 | $ | 150 | $ | 343 | ||||||||||||||||
Interest rate caps | (113 | ) | (5 | ) | (109 | ) | (5 | ) | |||||||||||||||||
Other (expense) income | $ | (115 | ) | $ | 117 | $ | 41 | $ | 338 | ||||||||||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 9 Months Ended | |
Sep. 30, 2013 | ||
Employee Benefit Plans | ' | |
7 | Employee Benefit Plans | |
The Predecessor had a deferred compensation plan for certain key employees pursuant to which Armada Hoffler purchased whole life insurance policies. Armada Hoffler discontinued its deferred compensation plan in May 2013 and as result, the Company has no further obligation under this plan. As of December 31, 2012, the Predecessor’s deferred compensation liability and cash surrender value of life insurance policies were both approximately $1.2 million. | ||
The Armada Hoffler Properties, Inc. 2013 Equity Incentive Plan provides for stock based awards in the form of options, restricted shares and other equity awards up to an aggregate of 700,000 shares over the ten-year term of the plan. | ||
During the nine months ended September 30, 2013, the Company granted an aggregate of 168,642 shares of restricted stock to employees and non-employee directors at a grant date fair value of $11.50. Using the accelerated attribution method, the Company recognized stock based compensation related to vested shares during the three and nine months ended September 30, 2013 of approximately $0.2 million and $1.0 million, respectively. As of September 30, 2013, there were 112,223 non-vested restricted shares outstanding; the total compensation cost related to non-vested restricted shares was approximately $0.9 million, which we expect to recognize over the next 21 months. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
8 | Fair Value of Financial Instruments | ||||||||||||||||
Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows: | |||||||||||||||||
Level 1 Inputs—quoted prices in active markets for identical assets or liabilities | |||||||||||||||||
Level 2 Inputs—observable inputs other than quoted prices in active markets for identical assets and liabilities | |||||||||||||||||
Level 3 Inputs—unobservable inputs | |||||||||||||||||
Except as disclosed below, the carrying amounts of Armada Hoffler’s financial instruments approximate their fair value. Financial assets and liabilities whose fair values are measured on a recurring basis using Level 2 inputs consist of interest rate swaps, interest rate caps, the cash surrender value of life insurance and deferred compensation. Armada Hoffler measures the fair values of these assets and liabilities based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques. | |||||||||||||||||
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. | |||||||||||||||||
The fair value of Armada Hoffler’s secured debt is sensitive to fluctuations in interest rates. Discounted cash flow analysis based on Level 2 inputs is generally used to estimate the fair value of Armada Hoffler’s secured debt. | |||||||||||||||||
Considerable judgment is used to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. | |||||||||||||||||
The carrying amounts and fair values of our financial instruments, all of which are based on Level 2 inputs, as of September 30, 2013 and December 31, 2012 were as follows (in thousands): | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
(Unaudited) | |||||||||||||||||
Secured debt | $ | 247,356 | $ | 234,375 | $ | 334,438 | $ | 339,623 | |||||||||
Participating note | — | — | 643 | 643 | |||||||||||||
Interest rate swap liabilities | 18 | 18 | 239 | 239 | |||||||||||||
Interest rate cap assets | 97 | 97 | 9 | 9 | |||||||||||||
Cash surrender value of life insurance | — | — | 1,196 | 1,196 | |||||||||||||
Deferred compensation liability | — | — | 1,249 | 1,249 |
Acquisition_of_Noncontrolled_E
Acquisition of Non-controlled Entities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Acquisition of Non-controlled Entities | ' | ||||||||||||||||
9 | Acquisition of Non-controlled Entities | ||||||||||||||||
As discussed in Note 1, the Company completed the IPO of shares of its common stock on May 13, 2013. Substantially concurrent with the completion of the IPO and in connection with the Formation Transactions, the Operating Partnership acquired 100% of the interests in the Non-controlled Entities of the Predecessor (Bermuda Crossroads and Smith’s Landing). | |||||||||||||||||
The acquisitions of the interests in Bermuda Crossroads and Smith’s Landing on May 13, 2013 were accounted for as purchases at fair value under the acquisition method of accounting. Total consideration in the form of cash and common units paid for the 50% interest in Bermuda Crossroads was approximately $3.2 million. Total consideration in the form of cash and common units paid for the 60% interest in Smith’s Landing was approximately $7.5 million. | |||||||||||||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): | |||||||||||||||||
Bermuda | Smith’s | ||||||||||||||||
Crossroads | Landing | ||||||||||||||||
(Unaudited) | |||||||||||||||||
Income producing property | $ | 16,091 | $ | 35,105 | |||||||||||||
Intangible assets | 2,860 | 2,420 | |||||||||||||||
Net working capital | 237 | 14 | |||||||||||||||
Secured debt | (11,053 | ) | (24,995 | ) | |||||||||||||
Below-market leases | (1,750 | ) | — | ||||||||||||||
Net assets acquired | $ | 6,385 | $ | 12,544 | |||||||||||||
The identified intangible assets for Bermuda Crossroads are primarily in-place leases. The in-place and below-market leases will be amortized over the weighted average lives of the remaining lease terms. The identified intangible assets for Smith’s Landing include $1.9 million assigned to a below-market ground lease and $0.5 million assigned to in-place leases, both of which will be amortized over the weighted average lives of the remaining lease terms. The fair value adjustment to the assumed secured debt of Bermuda Crossroads was a $0.2 million premium. The fair value adjustment to the assumed secured debt of Smith’s Landing was not significant. | |||||||||||||||||
Prior to the acquisition date, the Predecessor accounted for its 50% interest in Bermuda Crossroads and 40% interest in Smith’s Landing as equity-method investments. The acquisition-date fair values of the previous equity interests in Bermuda Crossroads and Smith’s Landing were approximately $3.2 million and $5.0 million, respectively. The Company recognized a gain of $9.5 million as a result of remeasuring the Predecessor’s prior equity interests in Bermuda Crossroads and Smith’s Landing held before the acquisitions. | |||||||||||||||||
The following table summarizes the consolidated and combined results of operations of Armada Hoffler, Bermuda Crossroads and Smith’s Landing on a pro forma basis, as if both Bermuda Crossroads and Smith’s Landing had been acquired as of January 1, 2012 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30 | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Unaudited) | |||||||||||||||||
Rental revenues | $ | 14,899 | $ | 14,767 | $ | 44,538 | $ | 44,564 | |||||||||
Net (loss) income | 1,448 | 1,863 | 2,667 | 15,233 | |||||||||||||
The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if these acquisitions had taken place on January 1, 2012. The pro forma financial information includes adjustments to depreciation and amortization expense for acquired property and intangible assets and liabilities, adjustments to rental revenue and rental expenses for above and below-market leases and adjustments to interest expense for fair value adjustments to assumed indebtedness. | |||||||||||||||||
Pro forma net income for the nine months ended September 30, 2012 includes the nonrecurring $9.5 million gain as a result of remeasuring the Predecessor’s prior equity interests in Bermuda Crossroads and Smith’s Landing held before the acquisitions. | |||||||||||||||||
Rental revenues and net income of both Bermuda Crossroads and Smith’s Landing for the period from the acquisition date to September 30, 2013 included in the consolidated and combined statements of income were approximately $2.3 million and $(0.3) million, respectively. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | |
Sep. 30, 2013 | ||
Discontinued Operations | ' | |
10 | Discontinued Operations | |
Armada Hoffler presents properties held for sale as discontinued operations only when Armada Hoffler will not have any significant continuing involvement in the properties’ operations after their disposition and when the properties’ operations and cash flows: (i) can be clearly distinguished and (ii) will be eliminated from Armada Hoffler’s ongoing operations upon disposition. Armada Hoffler presented the held for sale Studio 56 residential condominium units as discontinued operations during the three and nine months ended September 30, 2012. Net sale proceeds during the nine months ended September 30, 2012 were approximately $0.5 million. Armada Hoffler sold the last Studio 56 residential condominium unit during the three months ended June 30, 2012. Armada Hoffler currently has no plans to develop and sell residential condominium units. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | |
Sep. 30, 2013 | ||
Related Party Transactions | ' | |
11 | Related Party Transactions | |
Armada Hoffler provides general contracting and real estate services to certain related party entities that are not included in these consolidated and combined financial statements. | ||
Revenue from construction contracts with related parties of Armada Hoffler was approximately $10.6 million and $7.2 million for the three months ended September 30, 2013 and 2012, respectively. Fees from such contracts were approximately $0.3 million and $0.9 million for the three months ended September 30, 2013 and 2012, respectively. | ||
Revenue from construction contracts with related parties of Armada Hoffler was approximately $35.7 million and $10.0 million for the nine months ended September 30, 2013 and 2012, respectively. Fees from such contracts were approximately $1.1 million and $1.0 million for the nine months ended September 30, 2013 and 2012, respectively. | ||
Real estate services fees from affiliated entities of Armada Hoffler were not significant for either the three or nine months ended September 30, 2013 or 2012. In addition, affiliated entities also reimburse Armada Hoffler for monthly maintenance and facilities management services provided to the properties. Cost reimbursements from affiliated entities were not significant for either the three or nine months ended September 30, 2013 or 2012. | ||
Amounts due to related parties as of September 30, 2013 include amounts payable to prior investors in connection with the Formation Transactions. | ||
Distributions payable to the owners of the Predecessor of approximately $0.5 million are presented within due to affiliates in the combined balance sheet as of December 31, 2012. | ||
Upon completion of the IPO and Formation Transactions, the Operating Partnership supplies letters of credit on behalf of the Company’s construction business. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |
Sep. 30, 2013 | ||
Commitments and Contingencies | ' | |
12 | Commitments and Contingencies | |
Legal Proceedings | ||
Armada Hoffler is from time to time involved in various disputes, lawsuits, warranty claims, environmental and other matters arising in the ordinary course of its business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. | ||
Armada Hoffler currently is a party to various legal proceedings, none of which management expects will have a material adverse effect on Armada Hoffler’s financial position, results of operations or liquidity. Armada Hoffler accrues a liability for litigation if an unfavorable outcome is determined by management to be probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is determined by management to be probable and a range of loss can be reasonably estimated, Armada Hoffler accrues the best estimate within the range; however, if no amount within the range is a better estimate than any other, the minimum amount within the range is accrued. Legal fees related to litigation are expensed as incurred. Armada Hoffler does not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on its financial position or results of operations; however, litigation is subject to inherent uncertainties. | ||
Under Armada Hoffler’s leases, tenants are typically obligated to indemnify Armada Hoffler from and against all liabilities, costs and expenses imposed upon or asserted against it as owner of the properties due to certain matters relating to the operation of the properties by the tenant. |
Subsequent_Events
Subsequent Events | 9 Months Ended | |
Sep. 30, 2013 | ||
Subsequent Events | ' | |
13 | Subsequent Events | |
As discussed in Note 5, the Company borrowed an additional $15.0 million on the revolving credit facility, closed on an $18.5 million construction loan to fund the Whetstone Apartments development project, increased the aggregate capacity under the revolving credit facility to $155.0 million, repaid the Bermuda Crossroads loan for approximately $10.8 million, amended six loans and borrowed approximately $5.9 million on the 4525 Main Street and Encore Apartments construction loans. | ||
As discussed in Note 2, the Company paid an aggregate of approximately $5.2 million of cash dividends to common stockholders and common unitholders on October 10, 2013. | ||
Effective October 24, 2013, Admiral Joseph W. Prueher, USN (Ret.) was unanimously elected to the Company’s Board of Directors (the “Board”). Admiral Prueher will serve until the Company’s annual meeting of stockholders to be held in 2014 and until his successor is duly elected and qualifies. In connection with his appointment, Admiral Prueher received a grant of 585 shares of restricted common stock under the Company’s 2013 Equity Incentive Plan. One-third of the grant vested on October 24, 2013, the date of grant, while the remaining two-thirds vest in equal amounts on the first two anniversaries following the date of grant, subject to Admiral Prueher’s continued service on the Board. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Principles of Consolidation and Combination and Basis of Presentation | ' |
Principles of Consolidation and Combination and Basis of Presentation | |
The accompanying consolidated and combined financial statements were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the financial position and results of operations of the Company, the Operating Partnership and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. | |
The financial position and results of operations of the entities comprising the Predecessor have been combined because they were under the common control of Mr. Hoffler and under the common management by Armada Hoffler. All significant intercompany transactions and balances have been eliminated in combination. | |
In the opinion of management, the consolidated and combined financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition and results of operations for the interim periods presented. | |
The accompanying consolidated and combined financial statements were prepared in accordance with the requirements for interim financial information. Accordingly, these interim financial statements have not been audited and exclude certain disclosures required for annual financial statements. Also, the operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These interim financial statements should be read in conjunction with the audited combined financial statements of the Predecessor for the year ended December 31, 2012, included in the Company’s final prospectus dated May 7, 2013 and filed with the SEC on May 9, 2013 (SEC File No. 333-187513). | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities as of the date of the financial statements. Such estimates are based on management’s best judgment, after considering past, current and expected events and economic conditions. Actual results could differ from management’s estimates. | |
Income Taxes | ' |
Income Taxes | |
For periods prior to the completion of the IPO and the Formation Transactions on May 13, 2013, no provision was made for U.S. federal, state or local income taxes because profits and losses of the Predecessor flowed through to its respective partners, members and shareholders who were individually responsible for reporting such amounts. | |
For periods subsequent to the completion of the IPO and the Formation Transactions, the taxable REIT subsidiaries (“TRS”) of the Operating Partnership are subject to federal, state and local corporate income taxes. The Operating Partnership conducts its development and construction businesses through the TRS. The related income tax provision or benefit attributable to the profits or losses of the TRS is reflected in the consolidated and combined financial statements. | |
The Company uses the liability method of accounting for deferred income tax in accordance with GAAP. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the carrying value of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the statutory rates expected to be applied in the periods in which those temporary differences are settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period of the change. A valuation allowance is recorded on the Company’s deferred tax assets when it is more likely than not that such assets will not be realized. When evaluating the realizability of the Company’s deferred tax assets, all evidence, both positive and negative is evaluated. Items considered in this analysis include the ability to carryback losses, the reversal of temporary differences, tax planning strategies and expectations of future earnings. | |
Under GAAP, the amount of tax benefit to be recognized is the amount of benefit that is more likely than not to be sustained upon examination. Management analyzes its tax filing positions in the U.S. federal, state and local jurisdictions where it is required to file income tax returns for all open tax years. If, based on this analysis, management determines that uncertainties in tax positions exist, a liability is established. The Company recognizes accrued interest and penalties related to unrecognized tax positions in the provision for income taxes. If recognized, the entire amount of unrecognized tax positions would be recorded as a reduction to the provision for income taxes. | |
Noncontrolling Interests | ' |
Noncontrolling Interests | |
Upon completion of the IPO and the Formation Transactions, the Operating Partnership issued 13,059,365 common units of limited partnership interest to the Predecessor’s prior investors as partial consideration for the contribution of their interests in the Predecessor to the Operating Partnership, which the Company recognized at fair value. Noncontrolling interests in the Company represent common units of the Operating Partnership held by the Predecessor’s prior investors. As of September 30, 2013, the Company held a 59.5% interest in the Operating Partnership. As the sole general partner and the majority interest holder, the Company consolidates the financial position and results of operations of the Operating Partnership. | |
Holders of common units may not transfer their units without the Company’s prior consent as general partner of the Operating Partnership. Beginning on the first anniversary of the completion of the IPO and the Formation Transactions, common unitholders may tender their units for redemption by the Operating Partnership in exchange for cash equal to the market price of shares of the Company’s common stock at the time of redemption or, at the Company’s option and sole discretion, for shares of common stock on a one-for-one basis. Accordingly, the Company presents the common units of the Operating Partnership held by the Predecessor’s prior investors as noncontrolling interests within equity in the consolidated balance sheet. | |
Dividends | ' |
Dividends | |
On July 11, 2013, the Company paid cash dividends of approximately $1.5 million to common stockholders and approximately $1.1 million to common unitholders, representing $0.08 per share or unit. | |
On August 9, 2013, the Company’s Board of Directors declared a cash dividend of $0.16 per share or unit payable on October 10, 2013 to common stockholders and common unitholders of record on October 1, 2013. On October 10, 2013, the Company paid cash dividends of approximately $3.1 million to common stockholders and approximately $2.1 million to common unitholders. The aggregate $5.2 million dividend payable as of September 30, 2013 is presented within other liabilities in the condensed consolidated balance sheet. | |
Net Income Per Share | ' |
Net Income Per Share | |
The Company calculates net income per share based upon the weighted average shares outstanding during the period beginning May 13, 2013. Diluted net income per share is calculated after giving effect to all potential dilutive shares outstanding during the period. There were no potential dilutive shares outstanding during the three or nine months ended September 30, 2013. As a result, basic and diluted outstanding shares were the same. |
Segments_Tables
Segments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Net Operating Income of Reportable Segments | ' | ||||||||||||||||
Net operating income of Armada Hoffler’s reportable segments for the three and nine months ended September 30, 2013 and 2012 was as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Unaudited) | |||||||||||||||||
Office real estate | |||||||||||||||||
Rental revenues | $ | 6,364 | $ | 6,194 | $ | 19,270 | $ | 19,153 | |||||||||
Property expenses | 2,081 | 2,271 | 5,967 | 5,921 | |||||||||||||
Segment net operating income | 4,283 | 3,923 | 13,303 | 13,232 | |||||||||||||
Retail real estate | |||||||||||||||||
Rental revenues | 5,683 | 5,297 | 16,071 | 15,584 | |||||||||||||
Property expenses | 1,745 | 1,618 | 5,054 | 4,624 | |||||||||||||
Segment net operating income | 3,938 | 3,679 | 11,017 | 10,960 | |||||||||||||
Multifamily residential real estate | |||||||||||||||||
Rental revenues | 2,852 | 1,827 | 7,187 | 5,577 | |||||||||||||
Property expenses | 1,331 | 946 | 3,224 | 2,453 | |||||||||||||
Segment net operating income | 1,521 | 881 | 3,963 | 3,124 | |||||||||||||
General contracting and real estate services | |||||||||||||||||
Segment revenues | 21,896 | 13,631 | 63,143 | 40,655 | |||||||||||||
Segment expenses | 20,907 | 12,707 | 60,868 | 38,200 | |||||||||||||
Segment net operating income | 989 | 924 | 2,275 | 2,455 | |||||||||||||
Other | — | (2 | ) | — | (39 | ) | |||||||||||
Net operating income | $ | 10,731 | $ | 9,405 | $ | 30,558 | $ | 29,732 | |||||||||
Reconciliation of Net Operating Income to Net Income | ' | ||||||||||||||||
The following table reconciles net operating income to net income for the three and nine months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Unaudited) | |||||||||||||||||
Net operating income | $ | 10,731 | $ | 9,405 | $ | 30,558 | $ | 29,732 | |||||||||
Depreciation and amortization | (3,933 | ) | (2,718 | ) | (11,112 | ) | (9,297 | ) | |||||||||
General and administrative expenses | (1,638 | ) | (904 | ) | (5,212 | ) | (2,692 | ) | |||||||||
Impairment charges | — | — | (533 | ) | — | ||||||||||||
Interest expense | (2,598 | ) | (4,174 | ) | (9,802 | ) | (12,518 | ) | |||||||||
Loss on extinguishment of debt | (1,127 | ) | — | (2,252 | ) | — | |||||||||||
Gain on acquisitions | — | — | 9,460 | — | |||||||||||||
Other income (expense) | (109 | ) | 146 | 343 | 533 | ||||||||||||
Results from discontinued operations | — | — | — | (10 | ) | ||||||||||||
Income tax benefit (expense) | (74 | ) | — | 137 | — | ||||||||||||
Net income | $ | 1,252 | $ | 1,755 | $ | 11,587 | $ | 5,748 | |||||||||
Rental Revenues of Reportable Segments | ' | ||||||||||||||||
Rental revenues of Armada Hoffler’s reportable segments for the three and nine months ended September 30, 2013 and 2012 comprised the following (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Unaudited) | |||||||||||||||||
Minimum rents | |||||||||||||||||
Office | $ | 6,059 | $ | 5,972 | $ | 18,264 | $ | 17,919 | |||||||||
Retail | 4,759 | 4,376 | 13,733 | 13,072 | |||||||||||||
Multifamily | 2,370 | 1,621 | 6,060 | 4,814 | |||||||||||||
Percentage rents(1) | |||||||||||||||||
Office | — | — | 104 | 109 | |||||||||||||
Retail | 35 | 40 | 88 | 96 | |||||||||||||
Multifamily | 21 | 30 | 84 | 93 | |||||||||||||
Other(2) | |||||||||||||||||
Office | 304 | 222 | 901 | 1,125 | |||||||||||||
Retail | 890 | 881 | 2,251 | 2,416 | |||||||||||||
Multifamily | 461 | 176 | 1,043 | 670 | |||||||||||||
Rental revenues | $ | 14,899 | $ | 13,318 | $ | 42,528 | $ | 40,314 | |||||||||
-1 | Percentage rents are based on tenants’ sales. | ||||||||||||||||
-2 | Other rental revenue includes cost reimbursements for real estate taxes, property insurance and common area maintenance as well as termination fees. | ||||||||||||||||
Property Expenses of Reportable Segments | ' | ||||||||||||||||
Property expenses of Armada Hoffler’s reportable segments for the three and nine months ended September 30, 2013 and 2012 comprised the following (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Unaudited) | |||||||||||||||||
Rental expenses | |||||||||||||||||
Office | $ | 1,536 | $ | 1,740 | $ | 4,341 | $ | 4,303 | |||||||||
Retail | 1,230 | 1,134 | 3,593 | 3,239 | |||||||||||||
Multifamily | 1,074 | 761 | 2,534 | 1,896 | |||||||||||||
Other | — | 2 | — | 7 | |||||||||||||
Total | $ | 3,840 | $ | 3,637 | $ | 10,468 | $ | 9,445 | |||||||||
Real estate taxes | |||||||||||||||||
Office | $ | 545 | $ | 531 | $ | 1,626 | $ | 1,618 | |||||||||
Retail | 515 | 484 | 1,461 | 1,385 | |||||||||||||
Multifamily | 257 | 185 | 690 | 557 | |||||||||||||
Other | — | — | — | 32 | |||||||||||||
Total | $ | 1,317 | $ | 1,200 | $ | 3,777 | $ | 3,592 | |||||||||
Property expenses | $ | 5,157 | $ | 4,837 | $ | 14,245 | $ | 13,037 | |||||||||
Real_Estate_Investments_Tables
Real Estate Investments (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Real Estate Investments | ' | ||||||||
Armada Hoffler’s real estate investments comprised the following as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(Unaudited) | |||||||||
Land | $ | 37,812 | $ | 24,511 | |||||
Land improvements | 12,567 | 11,543 | |||||||
Buildings and improvements | 364,439 | 316,596 | |||||||
Development costs | 4,173 | 2,090 | |||||||
Construction in progress | 21,923 | — | |||||||
440,914 | 354,740 | ||||||||
Accumulated depreciation | (101,920 | ) | (92,454 | ) | |||||
Net real estate investments | $ | 338,994 | $ | 262,286 | |||||
Indebtedness_Tables
Indebtedness (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Extinguishment of Debt | ' | ||||||||
In connection with the IPO and Formation Transactions, the Company used proceeds from the IPO and the revolving credit facility to repay the following debt (in thousands): | |||||||||
Armada Hoffler Tower | $ | 38,813 | |||||||
Richmond Tower | 46,523 | ||||||||
Two Columbus | 18,785 | ||||||||
Virginia Natural Gas | 5,457 | ||||||||
Sentara Williamsburg | 10,915 | ||||||||
North Point Center Note 3 | 9,242 | ||||||||
Gainsborough Square | 9,732 | ||||||||
Parkway Marketplace | 5,669 | ||||||||
Courthouse 7-Eleven Note 1 | 1,485 | ||||||||
Properties unencumbered | $ | 146,621 | |||||||
Broad Creek Shopping Center Note 2 | 2,697 | ||||||||
Oyster Point Participation Note | 643 | ||||||||
Other debt repayments | 3,340 | ||||||||
Total | $ | 149,961 | |||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Schedule of Derivatives | ' | ||||||||||||||||||||||||
Armada Hoffler’s derivatives comprised the following as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Notional | Fair Value | Notional | Fair Value | ||||||||||||||||||||||
Amount | Gain | Loss | Amount | Gain | Loss | ||||||||||||||||||||
Pay fixed interest rate swaps | $ | 710 | $ | — | $ | (18 | ) | $ | 11,721 | $ | — | $ | (239 | ) | |||||||||||
Interest rate caps | 112,232 | 97 | — | 9,356 | 9 | — | |||||||||||||||||||
Total | $ | 112,942 | $ | 97 | $ | (18 | ) | $ | 21,077 | $ | 9 | $ | (239 | ) | |||||||||||
The changes in the fair value of Armada Hoffler’s derivatives during the three and nine months ended September 30, 2013 and 2012 comprised the following (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Pay fixed interest rate swaps | $ | (2 | ) | $ | 122 | $ | 150 | $ | 343 | ||||||||||||||||
Interest rate caps | (113 | ) | (5 | ) | (109 | ) | (5 | ) | |||||||||||||||||
Other (expense) income | $ | (115 | ) | $ | 117 | $ | 41 | $ | 338 | ||||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Carrying Amounts and Fair Values of Financial Instruments Measured based on Level Two Inputs | ' | ||||||||||||||||
The carrying amounts and fair values of our financial instruments, all of which are based on Level 2 inputs, as of September 30, 2013 and December 31, 2012 were as follows (in thousands): | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
(Unaudited) | |||||||||||||||||
Secured debt | $ | 247,356 | $ | 234,375 | $ | 334,438 | $ | 339,623 | |||||||||
Participating note | — | — | 643 | 643 | |||||||||||||
Interest rate swap liabilities | 18 | 18 | 239 | 239 | |||||||||||||
Interest rate cap assets | 97 | 97 | 9 | 9 | |||||||||||||
Cash surrender value of life insurance | — | — | 1,196 | 1,196 | |||||||||||||
Deferred compensation liability | — | — | 1,249 | 1,249 |
Acquisition_of_Noncontrolled_E1
Acquisition of Non-controlled Entities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Estimated Fair Values of Assets Acquired and Liabilities Assumed | ' | ||||||||||||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): | |||||||||||||||||
Bermuda | Smith’s | ||||||||||||||||
Crossroads | Landing | ||||||||||||||||
(Unaudited) | |||||||||||||||||
Income producing property | $ | 16,091 | $ | 35,105 | |||||||||||||
Intangible assets | 2,860 | 2,420 | |||||||||||||||
Net working capital | 237 | 14 | |||||||||||||||
Secured debt | (11,053 | ) | (24,995 | ) | |||||||||||||
Below-market leases | (1,750 | ) | — | ||||||||||||||
Net assets acquired | $ | 6,385 | $ | 12,544 | |||||||||||||
Consolidated and Combined Results of Operations on a Pro Forma Basis | ' | ||||||||||||||||
The following table summarizes the consolidated and combined results of operations of Armada Hoffler, Bermuda Crossroads and Smith’s Landing on a pro forma basis, as if both Bermuda Crossroads and Smith’s Landing had been acquired as of January 1, 2012 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30 | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(Unaudited) | |||||||||||||||||
Rental revenues | $ | 14,899 | $ | 14,767 | $ | 44,538 | $ | 44,564 | |||||||||
Net (loss) income | 1,448 | 1,863 | 2,667 | 15,233 |
Business_and_Organization_Addi
Business and Organization - Additional Information (Detail) (USD $) | 1 Months Ended | 1 Months Ended | ||||||||||||||
In Millions, except Share data, unless otherwise specified | 13-May-13 | 13-May-13 | 22-May-13 | 13-May-13 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | 13-May-13 | Sep. 30, 2013 | Sep. 30, 2013 | 13-May-13 |
Parcels | IPO | Underwriters Exercise Of Overallotment Option | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | Equity Method Investments | Equity Method Investments | Equity Method Investments | Operating Partnership | |
Property | Real estate properties | Real estate properties | Real estate properties | Real estate properties | Development Pipeline | Development Pipeline | Development Pipeline | Development Pipeline | Retail real estate | Multifamily residential real estate | ||||||
Property | Office real estate | Retail real estate | Multifamily residential real estate | Property | Office real estate | Retail real estate | Multifamily residential real estate | Property | Property | |||||||
Property | Property | Property | Property | Property | Property | |||||||||||
Real Estate Properties [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties | ' | ' | ' | ' | 22 | 7 | 14 | 1 | 6 | 2 | 2 | 2 | ' | 1 | 1 | ' |
Common stock, shares issued | ' | 16,525,000 | 2,478,750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, purchase price | ' | $11.50 | $11.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Initial Public Offering | $203.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating partnership payment of outstanding indebtedness | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150 |
Consideration paid to prior investors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $47.20 |
Options to acquire developeable lands, number of parcels of developable land to be acquired | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest acquired | 100.00% | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' |
Number Of Units to be purchased under purchase agreement | 197 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial_Public_Offering_and_Fo
Initial Public Offering and Formation Transactions - Additional Information (Detail) (Operating Partnership, USD $) | 0 Months Ended | 1 Months Ended |
In Millions, unless otherwise specified | Jul. 16, 2013 | 13-May-13 |
Operations And Organization [Line Items] | ' | ' |
Senior secured revolving credit facility, maximum borrowing capacity | ' | $100 |
Senior secured revolving credit facility, maximum borrowing capacity with option | ' | 250 |
Revolving credit facility, term | ' | '3 years |
Revolving credit facility, initial maturity date | ' | 13-May-16 |
Revolving credit facility, potential extended maturity date | ' | 12-May-17 |
Revolving credit facility, borrowed amount | $15 | $40 |
Minimum | ' | ' |
Operations And Organization [Line Items] | ' | ' |
Revolving credit facility, interest rate description | ' | 'LIBOR plus 1.60% |
Revolving credit facility, percentage added to LIBOR | ' | 1.60% |
Maximum | ' | ' |
Operations And Organization [Line Items] | ' | ' |
Revolving credit facility, interest rate description | ' | 'LIBOR plus 2.20% |
Revolving credit facility, percentage added to LIBOR | ' | 2.20% |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | |||
Aug. 09, 2013 | Jul. 11, 2013 | Sep. 30, 2013 | Jul. 11, 2013 | Jul. 11, 2013 | Oct. 10, 2013 | Oct. 10, 2013 | Oct. 10, 2013 | |
Common Stockholders | Common Unitholders | Subsequent Event | Subsequent Event | Subsequent Event | ||||
Common Stockholders | Common Unitholders | |||||||
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Common units issued | ' | ' | 13,059,365 | ' | ' | ' | ' | ' |
Percentage of Operating Partnership held | ' | ' | 59.50% | ' | ' | ' | ' | ' |
Cash dividend paid, per share | ' | $0.08 | ' | ' | ' | ' | ' | ' |
Dividends paid | ' | ' | $2,578,000 | $1,500,000 | $1,100,000 | $5,200,000 | $3,100,000 | $2,100,000 |
Cash dividend declared, per share | $0.16 | ' | ' | ' | ' | ' | ' | ' |
Cash dividend declared, payable date | 10-Oct-13 | ' | ' | ' | ' | ' | ' | ' |
Cash dividend declared, record date | 1-Oct-13 | ' | ' | ' | ' | ' | ' | ' |
Dividend payable | ' | ' | $5,200,000 | ' | ' | ' | ' | ' |
Segments_Additional_Informatio
Segments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Business segments | ' | ' | 4 | ' |
General contracting and real estate services revenues | $21,896 | $13,631 | $63,143 | $40,655 |
General contracting and real estate services expenses | 20,907 | 12,707 | 60,868 | 38,200 |
Non-cash stock compensation | ' | ' | 1,012 | ' |
Impairment charges | ' | ' | 533 | ' |
General contracting and real estate services | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
General contracting and real estate services revenues | 21,896 | 13,631 | 63,143 | 40,655 |
General contracting and real estate services expenses | 20,907 | 12,707 | 60,868 | 38,200 |
General and Administrative Expense | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Non-cash stock compensation | 200 | ' | 1,000 | ' |
Intersegment Eliminations | General contracting and real estate services | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
General contracting and real estate services revenues | 13,300 | 200 | 18,900 | 1,000 |
General contracting and real estate services expenses | $13,100 | $200 | $18,700 | $1,000 |
Net_Operating_Income_of_Report
Net Operating Income of Reportable Segments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Rental revenues | $14,899 | $13,318 | $42,528 | $40,314 |
Segment revenues | 21,896 | 13,631 | 63,143 | 40,655 |
Other | ' | -2 | ' | -39 |
Property expenses | 3,840 | 3,637 | 10,468 | 9,445 |
Segment expenses | 20,907 | 12,707 | 60,868 | 38,200 |
Net operating income | 10,731 | 9,405 | 30,558 | 29,732 |
Office real estate | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Rental revenues | 6,364 | 6,194 | 19,270 | 19,153 |
Property expenses | 2,081 | 2,271 | 5,967 | 5,921 |
Net operating income | 4,283 | 3,923 | 13,303 | 13,232 |
Retail real estate | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Rental revenues | 5,683 | 5,297 | 16,071 | 15,584 |
Property expenses | 1,745 | 1,618 | 5,054 | 4,624 |
Net operating income | 3,938 | 3,679 | 11,017 | 10,960 |
Multifamily residential real estate | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Rental revenues | 2,852 | 1,827 | 7,187 | 5,577 |
Property expenses | 1,331 | 946 | 3,224 | 2,453 |
Net operating income | 1,521 | 881 | 3,963 | 3,124 |
General contracting and real estate services | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Segment revenues | 21,896 | 13,631 | 63,143 | 40,655 |
Segment expenses | 20,907 | 12,707 | 60,868 | 38,200 |
Net operating income | $989 | $924 | $2,275 | $2,455 |
Reconciliation_of_Net_Operatin
Reconciliation of Net Operating Income to Net Income (Detail) (USD $) | 3 Months Ended | 5 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net operating income | $10,731 | $9,405 | ' | $30,558 | $29,732 |
Depreciation and amortization | -3,933 | -2,718 | ' | -11,112 | -9,297 |
General and administrative expenses | -1,638 | -904 | ' | -5,212 | -2,692 |
Impairment charges | ' | ' | ' | -533 | ' |
Interest expense | -2,598 | -4,174 | ' | -9,802 | -12,518 |
Loss on extinguishment of debt | -1,127 | ' | ' | -2,252 | ' |
Gain on acquisitions | ' | ' | ' | 9,460 | ' |
Other income (expense) | -109 | 146 | ' | 343 | 533 |
Results from discontinued operations | ' | ' | ' | ' | -10 |
Income tax benefit (expense) | -74 | ' | ' | 137 | ' |
Net income | $1,252 | $1,755 | $9,567 | $11,587 | $5,748 |
Rental_Revenues_of_Reportable_
Rental Revenues of Reportable Segments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Rental revenues | $14,899 | $13,318 | $42,528 | $40,314 | ||||
Office real estate | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Minimum rents | 6,059 | 5,972 | 18,264 | 17,919 | ||||
Percentage rents | ' | ' | 104 | [1] | 109 | [1] | ||
Other | 304 | [2] | 222 | [2] | 901 | [2] | 1,125 | [2] |
Rental revenues | 6,364 | 6,194 | 19,270 | 19,153 | ||||
Retail real estate | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Minimum rents | 4,759 | 4,376 | 13,733 | 13,072 | ||||
Percentage rents | 35 | [1] | 40 | [1] | 88 | [1] | 96 | [1] |
Other | 890 | [2] | 881 | [2] | 2,251 | [2] | 2,416 | [2] |
Rental revenues | 5,683 | 5,297 | 16,071 | 15,584 | ||||
Multifamily residential real estate | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Minimum rents | 2,370 | 1,621 | 6,060 | 4,814 | ||||
Percentage rents | 21 | [1] | 30 | [1] | 84 | [1] | 93 | [1] |
Other | 461 | [2] | 176 | [2] | 1,043 | [2] | 670 | [2] |
Rental revenues | $2,852 | $1,827 | $7,187 | $5,577 | ||||
[1] | Percentage rents are based on tenants' sales. | |||||||
[2] | Other rental revenue includes cost reimbursements for real estate taxes, property insurance and common area maintenance as well as termination fees. |
Property_Expenses_of_Reportabl
Property Expenses of Reportable Segments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Rental expenses | $3,840 | $3,637 | $10,468 | $9,445 |
Real estate taxes | 1,317 | 1,200 | 3,777 | 3,592 |
Property expenses | 5,157 | 4,837 | 14,245 | 13,037 |
Office real estate | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Rental expenses | 1,536 | 1,740 | 4,341 | 4,303 |
Real estate taxes | 545 | 531 | 1,626 | 1,618 |
Retail real estate | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Rental expenses | 1,230 | 1,134 | 3,593 | 3,239 |
Real estate taxes | 515 | 484 | 1,461 | 1,385 |
Multifamily residential real estate | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Rental expenses | 1,074 | 761 | 2,534 | 1,896 |
Real estate taxes | 257 | 185 | 690 | 557 |
Other | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Rental expenses | ' | 2 | ' | 7 |
Real estate taxes | ' | ' | ' | $32 |
Real_Estate_Investments_Detail
Real Estate Investments (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Real Estate Properties [Line Items] | ' | ' |
Land | $37,812 | $24,511 |
Land improvements | 12,567 | 11,543 |
Buildings and improvements | 364,439 | 316,596 |
Development costs | 4,173 | 2,090 |
Construction in progress | 21,923 | ' |
Gross real estate investments | 440,914 | 354,740 |
Accumulated depreciation | -101,920 | -92,454 |
Net real estate investments | $338,994 | $262,286 |
Real_Estate_Investments_Additi
Real Estate Investments - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Real Estate Properties [Line Items] | ' | ' |
Land | $37,812 | $24,511 |
Main Street Land | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 2,300 | 1,800 |
Bermuda Crossroads | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 5,500 | ' |
Whetstone Apartments | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | 2,600 | ' |
Sandbridge Commons | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Land | $5,200 | ' |
Indebtedness_Additional_Inform
Indebtedness - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 16, 2013 | 13-May-13 | Sep. 30, 2013 | 13-May-13 | 13-May-13 | Jul. 17, 2013 | Oct. 08, 2013 | Oct. 10, 2013 | Oct. 31, 2013 | Oct. 11, 2013 | Sep. 30, 2013 | Jul. 30, 2013 | Oct. 08, 2013 | Oct. 08, 2013 | Sep. 30, 2013 | Jan. 16, 2013 | Jan. 15, 2013 | Feb. 18, 2013 | Feb. 19, 2013 | Sep. 30, 2013 | Oct. 25, 2013 | Apr. 15, 2013 | Sep. 30, 2013 | Mar. 25, 2013 | Jan. 02, 2013 | Jan. 03, 2013 | Nov. 12, 2013 | |
Operating Partnership | Operating Partnership | Operating Partnership | Operating Partnership | Operating Partnership | Two Columbus | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | IPO | Construction Loans | Construction Loans | Construction Loans | Virginia Natural Gas | Virginia Natural Gas | Virginia Natural Gas | Gainsborough Square | Gainsborough Square | Gainsborough Square | Broad Creek Shopping Center | Broad Creek Shopping Center | Broad Creek Shopping Center | Main Street Land | Main Street Land | Main Street Land | Main Street Land | ||||
Minimum | Maximum | Operating Partnership | Operating Partnership | Operating Partnership | Bermuda Crossroads | Subsequent Event | Subsequent Event | Subsequent Event | Notes 2 | Notes 2 | Construction Loans | |||||||||||||||||||
Operating Partnership | London Interbank Offered Rate (LIBOR) | Operating Partnership | Subsequent Event | |||||||||||||||||||||||||||
Credit Facility Amendment | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Oct-18 | ' | ' | 30-Jan-17 | ' | ' | ' | ' | ' | 28-Dec-13 | 28-Jan-14 | ' | 31-Oct-18 | ' | ' | 3-Jul-13 | 5-Jan-13 | 3-Apr-13 | ' |
Stated interest rate, prime rate basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, additional borrowed amount | ' | $62,700,000 | $18,752,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,700,000 | ' | ' | ' | ' | ' |
Loss on extinguishment of debt | -1,127,000 | -2,252,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on extinguishment of debt, fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on extinguishment of debt, unamortized debt issuance costs | ' | 542,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 542,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, borrowed amount | ' | ' | ' | 15,000,000 | 40,000,000 | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance costs | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, interest rate description | ' | ' | ' | ' | ' | ' | 'LIBOR plus 1.60% | 'LIBOR plus 2.20% | ' | ' | ' | 'LIBOR plus 2.25% | ' | ' | 'LIBOR plus 1.95% | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR plus 2.25% | ' | ' | ' | ' | ' | ' |
Construction loan, interest rate | ' | ' | ' | ' | ' | ' | 1.60% | 2.20% | ' | ' | ' | 2.25% | ' | ' | 1.95% | ' | 1.90% | ' | ' | ' | ' | ' | ' | 2.25% | ' | ' | ' | ' | ' | ' |
Defeased loan amount | ' | 149,961,000 | ' | ' | ' | ' | ' | ' | 14,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | 5,457,000 | ' | ' | ' | ' | 9,732,000 | ' | ' | 2,697,000 | ' | ' | ' | ' |
Defeased loan, costs | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Construction loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63,000,000 | 18,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,900,000 |
Revolving credit facility, outstanding amount | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, available amount | ' | ' | ' | ' | ' | 55,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, interest rate | ' | ' | ' | ' | ' | 1.93% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, borrowing capacity | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | 155,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Borrowing Capacity, Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'On October 10, 2013, the Operating Partnership increased the aggregate capacity under the revolving credit facility to $155.0 million by adding the following six properties to the borrowing base collateral i) One Columbus, (ii) Two Columbus, (iii) a portion of North Point Center, (iv) Gainsborough Square, (v) Parkway Marketplace and (vi) Courthouse 7-Eleven. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, repayment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid Loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Repayment_of_Debt_D
Summary of Repayment of Debt (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Scheduled Principal Payments For Borrowings [Line Items] | ' |
Repayment of debt | $149,961 |
Armada Hoffler Tower | ' |
Scheduled Principal Payments For Borrowings [Line Items] | ' |
Repayment of debt | 38,813 |
Richmond Tower | ' |
Scheduled Principal Payments For Borrowings [Line Items] | ' |
Repayment of debt | 46,523 |
Two Columbus | ' |
Scheduled Principal Payments For Borrowings [Line Items] | ' |
Repayment of debt | 18,785 |
Virginia Natural Gas | ' |
Scheduled Principal Payments For Borrowings [Line Items] | ' |
Repayment of debt | 5,457 |
Sentara Williamsburg | ' |
Scheduled Principal Payments For Borrowings [Line Items] | ' |
Repayment of debt | 10,915 |
North Point | Notes 3 | ' |
Scheduled Principal Payments For Borrowings [Line Items] | ' |
Repayment of debt | 9,242 |
Gainsborough Square | ' |
Scheduled Principal Payments For Borrowings [Line Items] | ' |
Repayment of debt | 9,732 |
Parkway Marketplace | ' |
Scheduled Principal Payments For Borrowings [Line Items] | ' |
Repayment of debt | 5,669 |
Courthouse 7-Eleven | Notes 1 | ' |
Scheduled Principal Payments For Borrowings [Line Items] | ' |
Repayment of debt | 1,485 |
Unencumbered | ' |
Scheduled Principal Payments For Borrowings [Line Items] | ' |
Repayment of debt | 146,621 |
Broad Creek Shopping Center | Notes 2 | ' |
Scheduled Principal Payments For Borrowings [Line Items] | ' |
Repayment of debt | 2,697 |
Oyster Point | ' |
Scheduled Principal Payments For Borrowings [Line Items] | ' |
Repayment of debt | 643 |
Other Financing Obligations Repayments | ' |
Scheduled Principal Payments For Borrowings [Line Items] | ' |
Repayment of debt | $3,340 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Informations (Detail) (USD $) | 1 Months Ended | ||
Sep. 01, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Derivative [Line Items] | ' | ' | ' |
Total notional amount | $103,000,000 | $112,942,000 | $21,077,000 |
Number of interest cap agreement | 3 | ' | ' |
Total Premium paid | $200,000 | ' | ' |
Minimum | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Strike price | 1.50% | ' | ' |
Maximum | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Strike price | 3.50% | ' | ' |
Schedule_of_Derivatives_Detail
Schedule of Derivatives (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 01, 2013 |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' |
Notional Amount | $112,942 | ' | $112,942 | ' | $21,077 | $103,000 |
Fair Value Gain | ' | ' | 97 | ' | 9 | ' |
Fair Value Loss | ' | ' | -18 | ' | -239 | ' |
Gain | -115 | 117 | 41 | 338 | ' | ' |
Pay fixed interest rate swaps | ' | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' |
Notional Amount | 710 | ' | 710 | ' | 11,721 | ' |
Fair Value Loss | ' | ' | -18 | ' | -239 | ' |
Gain | -2 | 122 | 150 | 343 | ' | ' |
Interest rate cap | ' | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' |
Notional Amount | 112,232 | ' | 112,232 | ' | 9,356 | ' |
Fair Value Gain | ' | ' | 97 | ' | 9 | ' |
Gain | ($113) | ($5) | ($109) | ($5) | ' | ' |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | |
Restricted Stock | Restricted Stock | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Deferred compensation liabilities | ' | $1,200,000 | ' | ' |
Cash surrender value of life insurance policies | ' | 1,200,000 | ' | ' |
Stock based awards | 700,000 | ' | ' | ' |
Stock based awards, term | '10 years | ' | ' | ' |
Stock based awards, restricted share granted | ' | ' | ' | 168,642 |
Stock based awards, fair value of shares granted | ' | ' | ' | $11.50 |
Share based compensation cost | 1,012,000 | ' | 200,000 | 1,000,000 |
Stock based awards, unvested restricted shares | ' | ' | 112,223 | 112,223 |
Stock based awards, unvested restricted shares total compensation cost | ' | ' | $900,000 | $900,000 |
Stock based awards, unvested restricted shares total compensation cost period | ' | ' | '21 months | ' |
Carrying_Amounts_and_Fair_Valu
Carrying Amounts and Fair Values of Financial Instruments Measured based on Level Two Inputs (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Secured debt | $247,356 | ' |
Cash surrender value of life insurance | ' | 1,200 |
Deferred compensation liability | ' | 1,200 |
Fair Value | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Secured debt | 234,375 | 339,623 |
Participating note | ' | 643 |
Interest rate swap liabilities | 18 | 239 |
Interest rate cap assets | 97 | 9 |
Cash surrender value of life insurance | ' | 1,196 |
Deferred compensation liability | ' | 1,249 |
Carrying value | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Secured debt | 247,356 | 334,438 |
Participating note | ' | 643 |
Interest rate swap liabilities | 18 | 239 |
Interest rate cap assets | 97 | 9 |
Cash surrender value of life insurance | ' | 1,196 |
Deferred compensation liability | ' | $1,249 |
Acquisition_of_Noncontrolled_E2
Acquisition of Non-controlled Entities - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
13-May-13 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Percentage of operating partnership acquired | 100.00% | ' | ' | ' | ' |
Gain loss from remeasurment of equity mehtod investement | $9,500,000 | ' | ' | ' | ' |
Proforma Rental revenue | 2,300,000 | 14,899,000 | 14,767,000 | 44,538,000 | 44,564,000 |
Proforma net income | -300,000 | 1,448,000 | 1,863,000 | 2,667,000 | 15,233,000 |
Pro Forma | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Gain loss from remeasurment of equity mehtod investement | 9,500,000 | ' | ' | ' | ' |
Smith's Landing | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Ownership percentage of acquired non-controlled entities | 60.00% | ' | ' | ' | ' |
Acquitions, Consideration in the form of cash and common units | 7,500,000 | ' | ' | ' | ' |
Acquisition-date fair values of equity interests | 5,000,000 | ' | ' | ' | ' |
Smith's Landing | Predecessor | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Ownership percentage of acquired non-controlled entities | 40.00% | ' | ' | ' | ' |
Smith's Landing | Intangible Assets | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Acquisition, below-market ground lease | 1,900,000 | ' | ' | ' | ' |
Acquisition, in-place leases | 500,000 | ' | ' | ' | ' |
Bermuda Crossroads | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Ownership percentage of acquired non-controlled entities | 50.00% | ' | ' | ' | ' |
Acquitions, Consideration in the form of cash and common units | 3,200,000 | ' | ' | ' | ' |
Acquisition, below-market ground lease | 1,750,000 | ' | ' | ' | ' |
Fair value adjustment to assumed secured debt | 200,000 | ' | ' | ' | ' |
Acquisition-date fair values of equity interests | $3,200,000 | ' | ' | ' | ' |
Bermuda Crossroads | Predecessor | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Ownership percentage of acquired non-controlled entities | 50.00% | ' | ' | ' | ' |
Estimated_Fair_Values_of_Asset
Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $) | 13-May-13 |
In Thousands, unless otherwise specified | |
Bermuda Crossroads | ' |
Business Acquisition [Line Items] | ' |
Income producing property | $16,091 |
Intangible assets | 2,860 |
Net working capital | 237 |
Secured debt | -11,053 |
Below-market leases | -1,750 |
Net assets acquired | 6,385 |
Smith's Landing | ' |
Business Acquisition [Line Items] | ' |
Income producing property | 35,105 |
Intangible assets | 2,420 |
Net working capital | 14 |
Secured debt | -24,995 |
Net assets acquired | $12,544 |
Consolidated_and_Combined_Resu
Consolidated and Combined Results of Operations on a Pro Forma Basis (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | 13-May-13 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ' | ' | ' | ' | ' |
Rental revenues | $2,300 | $14,899 | $14,767 | $44,538 | $44,564 |
Net (loss) income | ($300) | $1,448 | $1,863 | $2,667 | $15,233 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Proceeds from disposal of discontinuous operation | $0.50 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Related Party Transaction Due From To Related Party [Line Items] | ' | ' | ' | ' | ' |
Revenue from contracts with affiliated entities | $10.60 | $7.20 | $35.70 | $10 | ' |
Fees from contracts with affiliated entities | 0.3 | 0.9 | 1.1 | 1 | ' |
Distributions payable to the owners | ' | ' | ' | ' | $0.50 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 9 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | ||||
Sep. 30, 2013 | Jul. 16, 2013 | 13-May-13 | Jul. 30, 2013 | Oct. 10, 2013 | Oct. 24, 2013 | Oct. 08, 2013 | Oct. 10, 2013 | Oct. 11, 2013 | Oct. 08, 2013 | Nov. 12, 2013 | |
Operating Partnership | Operating Partnership | Construction Loans | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||
Board of Directors | Operating Partnership | Operating Partnership | Operating Partnership | Construction Loans | Construction Loans | ||||||
2013 Equity Incentive Plan | Bermuda Crossroads | Main Street Land | |||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, borrowed amount | ' | $15,000,000 | $40,000,000 | ' | ' | ' | $15,000,000 | ' | ' | ' | ' |
Construction loan | ' | ' | ' | 63,000,000 | ' | ' | ' | ' | ' | 18,500,000 | 5,900,000 |
Line of credit facility, borrowing capacity | ' | ' | 100,000,000 | ' | ' | ' | ' | 155,000,000 | ' | ' | ' |
Revolving credit facility, repayment of debt | ' | ' | ' | ' | ' | ' | ' | ' | 10,800,000 | ' | ' |
Dividends paid | $2,578,000 | ' | ' | ' | $5,200,000 | ' | ' | ' | ' | ' | ' |
Restricted Share Granted | ' | ' | ' | ' | ' | 585 | ' | ' | ' | ' | ' |
Shares vested percentage | ' | ' | ' | ' | ' | 0.33% | ' | ' | ' | ' | ' |
shares expected to vest percentage | ' | ' | ' | ' | ' | 0.67% | ' | ' | ' | ' | ' |