AHH - Earnings call transcript Q1 2019 | Armada Hoffler Properties, Inc.

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Operator

Welcome to Armada Hoffler's First Quarter 2019 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference call is being recorded today, Thursday, May 2, 2019. I will now turn the conference call over to Michael O'Hara, Chief Financial Officer at Armada Hoffler. Please go ahead.

Michael O’Hara

you Call Armada and thank XXXX First and Conference Earnings Webcast. morning, for Hoffler's joining Quarter Good On this call is Lou this morning, in CEO. addition Haddad, to myself, The along quarter package, our distributed press quarterly were our supplemental earnings, morning. this release announcing with first call X, replay June shortly after call be the A will available of conclusion this the of XXXX. through earnings numbers access replay the release. to are press The provided in the

May to you are call. listen who this the XXXX, today, that as remarks those this to remind rebroadcast not For presentation, will herein the made of subsequent be X, and of updated earnings initial

During business, make our Listeners to related portfolio, risks call, statements portfolio activities, financing our mezzanine acquisitions as statements, of to pipeline, these are development subject including our impact of performance on outlook. and this statements and we well our will guidance our and uncertainties, are as performance Construction the comments certain that our future cautioned dispositions, forward-looking program, and to generally we and disclosed we filed results press to difficult from morning with our expectations, to SEC. current are actual risk this which the to disclosed the forward-looking our factors review predict furnished and differ cause release control. of beyond The advise documents and can the and in many materially uncertainties risks and statements our are listeners have

turn armadahoffler.com. Haddad. as our quarterly Lou now limited discuss I We website supplemental measures measures, reconciliations and as is FFO to, the available not included Officer, Chief FFO. call the Executive non-GAAP in normalized measures will on of most but package, are the certain non-GAAP well also including, comparable to will to Lou? Definitions these financial our which GAAP

Louis Haddad

morning, for today. and everyone, joining Thanks, us you Good Mike. thank

our is Armada discussion this years As you from a press platform. strategies, Prominent the A issuance to at days variety lot one of momentum units, our great we morning, of through the going couple manifest The the hear past a positive OP our example we've few of of here release of over starting in Properties a of on in multifaceted ways from business across ago. acquisition built Hoffler. have highlighted will our was

the X.X comment I to The a forward Group, a centers further group company. of properties as developers development most extended in quality a reduces our long-standing home our centers, our to engagements. OP look to progress, NOI as you home every acquisition of located $X make with high assumed the the the upwardly city in units these $X.XX volume highlights history pipeline price acquisition. address I'll top Financially, cost trending of our and respect. collaborate is retailers, rate, This equity $XXX establishes performance Perhaps extremely $XX.XX best $XX to this over these some rents on attractive barrier entry our exciting by Norfolk/Virginia annualized update entire basis. million of issuance of our We to of an corporate sales the in Before on to known put, With are against million is high and company. market positive professionals debt-to-EBITDA even The million well developers Beach of occupancy equates in above The of transaction an high time region. of to is operating us. stabilized to acquisition on These worthy below and at FFO the portfolio. accretive various will and our of the debt, has owners importantly, on significantly substantially over opportunity of more some the this in are additions period this and is million real X.X MSA. Simply value capital, NOI acquisition ratio. Beach price reputation which these significant make the Realty estate the purchase other virtually Venture a of cap of Virginia

in temporary portfolio, will after the settle percentage range. of percentage portion back acquisition to retail of spike development that our the stabilizes NOI the traditional While from into to the the contribution pipeline expect lead a current we XX%

As we our a will occasions, numerous have part said retail on well-located of significant strategy. remain high-volume growth

unchanged generate these at come. many will to NOI years our left this that we've X organic All expect said, properties for time. growth We significant guidance

obviously adjust range are there too is to to yet. unknowns of positive, our many trend the accurately While just $X.XX $X.XX

has for our press forecast. total same-store and earnings NOI quarters, consecutive higher As release, is significantly previously increased from you X can NOI see than

that these only these may believe differences. amount consequently, the We and we slower ultimately adjustments result Interlock our Please short loans that in in will potential of up income construction that streams and profit pace of ancillary offset yield the on by be the a are third-party the somewhat project. timing term mezzanine However, anticipated. of a increases ramp note loans the of slower a contracts

fine the We recently this expect closing the to quarter. announced end of the able to of be the Beach timing these Virginia as well projections as on tune acquisition by

the are of we portfolio NAV increases need long-term commensurate as in FFO growth and for clarity projections, the mindful share and earnings dividends. most you increasing know, of focus is and of steadily our While annual per on our

from Brooks the entire in is Market returns confidence our the Point stand pipeline development The was on on recent -- roughly in the Charleston, nearly And being delivered additional Beach the leasing with occupancy now nearly up XX%, From the time XXX,XXX pre-leasing the at nearing full Virginia is leased. negotiation, Wills housing full lease history in Harbor, spectacular, Greenside and despite a development. is along Hoffler delivery. the in and the delivery Foods project Charlotte starting now an at performance The XX% of time projects retail is early XX% at multifamily on-time South Charleston XXXX delivery Point which seeing of lease the leased. entire Inner multifamily tenants in lease Construction the Virginia, two of swing. office Place, currently for of track Inclusive has at on XX best Wharf commenced The chain. Carolina, Street to in nearly continues year months, stand the student to XX% projections anticipate delivery, activity. to stands Center on Lowes Town were and first-year Construction this with Premier completion on side XX%. rent now Mill the projects on XX% our with we're Creek highlighted building. Apartments occupancy robust The The adjacent early XX%. at leased on amongst in and feet. two the development, Baltimore's This nearing opening are and office is furthest by Harbor we building sales Crossing News, in continue near pre-leasing King most with XX%. was The delivered at the center the move at with range. square Let's on XX% Newport was the reaffirms pre-leasing the our

schedule. on on Lee Summit project, similar delivery a is Place second Street The

This raised underwriting, And the contact as the facility federal apparently placed this company investment didn't be the facility the to pause to although discussions, to that it from allow our we school with along it's best fall. information. original an this this in of interest this qualifying new while However, project project in from excluded believe our necessitate not who the with of in guidance. advantage have year, incentive this delay in uncertainty, zone. completed to best invest online impact to opportunity groups regulations program to for the for of We've the have newly With lease-up nearly in pertaining bringing proceedings development. explore long lies been published these IRS qualify how we slower-than-expected, take conservatively several funds for any may opportunity this service. XXXX we zone as Due in instead factor construction coming to

in event, situation greater four posted are this We and the development in projects as market remain the the our opportunities long-term market. the we Greater initial project With horizon, invested Nexton confident loan this develops. center which have and fully also asset. growing lifestyle presence more pipeline, you Charleston exciting two in the we In committed Square, hold of in underway, final Charleston dynamic any mezzanine a a in to is a through on we long-term development keep and our value option a will The market. purchase underwriting discounted

will already tenants won't until first of completion XX%. in-leasing stands quarter this construction open handful final Although this year, later the occur at

our the delivered underwriting of new pipeline or development number group hard With our nearing opportunities. of work majority at a completion, is

over We range couple round. tenants. development Re-leasing hope helps that decline use retail from NOI. a run is of at projects receive The at an upgrades to reviews to new the to Town and spreads, to an This keeping centerpieces most be committed frame. are to all-time flow time the for the high, selected $XXX deal we infill to $XXX promising in Currently, million appear urban development. million rate the new Although projects of XX-month ensure only by Cosmopolitan Most summer's products occupancy meaningfully. portfolio The mixed the discipline rave performance robust Center to the in remain to notably, continue in with increases announce show units core next end. continues our sector, in same-store the both apartments particularly to continue our

to premium we've same refreshed number construction at units. taking leasing each success, the larger this a to Due X% units XX% by unimproved the off-line to in decided space. Newly are accelerate to pace of apartments a of

short term, Crossing continues the and high be should Creek and the income previously at highlighted quarter. reduce Although very shortened NOI construction office construction XXXX Brooks a will The in perform this of phase higher completion to building be duration Market On-time Mill the will level. the than at overall group anticipated.

track for cash strategy of a that dates development have the controlling a overstated. us has We peer pipeline. scheduled on be a of team portfolio markets confidence completion are generation, construction the Offering frames enjoyed delivery the our Similarly, value large dependable reducing factor of our gives capital our by control the lending development we of the substantially tenant process meaningful construction time reliance income repeat us number cannot Reliable thereby clients also which also advantage third-party gives construction for led group. years. fee mezzanine the selection to to to solidifies on properties The fund basis, to continue the growth. rest steady in our the that significant our a to of over pursue our

second While guidance starts range. the within the ramp-up will income the on division this well have our year, be the will new weighted of towards that half we're from confident back several construction the profits

in several engagements stands preconstruction backlog phase. new Third-party the at million potential $XXX with

it on Now the specifics give over will some to I turn to quarter. Mike

Michael O’Hara

quarter, the of Lou. to I highlights Thanks, on sheet Today, want our XXXX guidance. balance our thoughts the cover and

package, met weighted the of will and be Atlanta insight This per you updated fees we quarter, This quarter gives interest our which half our normalized that morning we construction on the we Interlock reported commenced expectations. the first $X.XX I'll the of share supplemental remind for income FFO hope more company. the into which quarter, the $X.XX projects mezzanine year. the construction during and of you back-end to second FFO

occupancy consecutive and multifamily the operating the positive NOI strong quarter positive at portfolio XX%. significantly, quarter Most X.X% fourth Same-store and multifamily XX% for was Our same-store at office positive XX% positive XX%, remained GAAP NOI X%. our at first with was X.X%. at with retail cash core for

basis quarter, this year. positive and new re-leasing active our portfolio these our this again our Additionally, We've to positive added X.X% X.X% portfolio's been GAAP strength. on reflect believe on continuing properties cash. X with were being metrics a We spreads

and Point. out commercial the venture of new in-service to in with last along portfolio we XXX% and XXXX Duke the University our in City added Point March, our quarter, of project program commercial loan. in building. distributed discussed, Initial space. was In in the mezzanine Baltimore's the which October was One This own WeWork in joint space placed venture in was joint Harbor Center As was project Durham apartments the a occupying with the

have we X in Last exercised XXX% an the first can As option purchase be ownership option ownership. 'XX% part for building, purchase for which of we exercised at-cost structure, the mezzanine for the week phases.

operating next is year, capital is very And We require expect retail leverage announced acquisitions included previously equity we properties additional of in quarter. cash XXXX this required approximately for City in any little any and we Center required as guidance. the our of target for years X expect within the required ATM $XXX million, outlined, Lou One these capital. funded centers the Virginia the Point second The option which And past The new our not over few was Beach, structures. which outlay. XXXX to total close will which to lastly, X exercise

we On of $XXX,XXX on construction quarter, profit gross put company the $XXX $XX At quarter third-party million. first the end a front, revenue construction in segment a the had million. backlog first of of the the

the the for center. as traded Now Foods update payoffs sales The of program. loan with an Jay the Collins Cato an signed schedule, on [ph] REIT of of is our publicly on LOI Whole his mezzanine

and We payoff the quarter. expect in loan third closing

the As to I now Interlock fund summer. construction site the the And well underway, we mentioned sheet. through turning earlier, in balance our quarter. began to project Atlanta With these expect during loans work

good XXXX we made our progress on plan. Over quarter, the past have capital

to targets Our hit XXXX our the leverage year. the guidance of issued for in February following consisted

to expected debt. approximately pay used for proceeds of million, the we First, center shopping disposition which of down $XX a grocery-anchored

Harris During of this $XX high interest for anticipating sale, Teeter the listed excess Lightfoot now level with the level center, center in proceeds of with million. quarter, high the we in we're --

market center Second, under center and Junction $XX LOI third, Whole we we through million quarter. The Whole favorable $XX.X third off this expected $XX the Decatur with we raising Foods conditions expected an Decatur the Taking million. advantage is million. ATM expect Annapolis are loans be quarter, anticipate approximately in Foods payments year. first The to the program. paid raised during And the closing of

announced in leverage Beach which X to and addition, In centers, shopping our equity acquisition units just the the overall of issuing Virginia $XX ratio. lowers through million OP add

evaluating are development of expect until new ground later we to any this We of we capital Lou therefore investment in year, opportunities. number break said, and not little a do As very these require XXXX.

are one is paid XXXX, which in turning million. in construction Greenside there in loan both maturities, $XX totaling two Charlotte The Now In Apartments are January. to Town only was loans, the which maturities. and Center. There for of loans debt are our maturity Premier in XXXX, the off

activity leasing the At extension quarter, of credit under on our have With had no projects. outstanding revolving at these options exercising the both million $XX debt the $XXX facility. including on end outstanding either $XXX million, we million or refinancing concerns we projects, the total

to exposure potentially hedge rate to interest debt interest end, We quarter our either continue hedged. to of evaluate our or continue XX% exposure. higher our rates and was At fixed

$XX the an providing environment we opportunity, into million during swap rate interest lock current entered an the With quarter.

through the based loan The during quarter, is LIBOR forecasts quarter, are: LIBOR center forward raising of program X.XX% of center centers the updated quarter, the being to million market loan at guidance. ATM apartments guidance the Foods in assumptions $XX through the the million second like expense Point being conditions. and the year-end. of of Now XX% fourth go partnership which shopping on our off the I'd -- Junction third the the assuming in Virginia paid Interest the the details quarter, Decatur Beach Harris paid the Harris sale of interest Annapolis of the Whole third at XXXX Lightfoot calculated during favorable the off the the proceeds Teeter quarter during $XX curve, for two acquisition in XXXX anticipated

$XX.X million Our range; $X.XX gross $X.X the million $XX.X to interest the amortization XX.X Junction not administrative XXXX FFO the from predicated $X.X of interest does expense million guidance share to to million to programs to $X.XX construction normalized general million average on $XX.X the $XX third-party outstanding. per remaining in mezzanine recognized million to of purchase weighted range, following in range, range; million which share interest apartments the to of million $XX.X million to million in and also updated profit $XX.X related financing Annapolis is the million of components: which $X.X $XX.X range; per expenses million include expense expense the Total interest and in the $XX.X net in the NOI $X.X the includes income mezzanine million the option; shares program; is

the Now will turn Lou. to call I back

Louis Haddad

Hoffler central company XX focus. on our that been real multiple foremost value. Thanks, can profitability first our Armada for create strategies have tenets is this and an and and opportunistic remain investors to to years, Mike. estate count These primary Remember, enhance employs

will acquisitions, As as unit the as and options deal model structures business a variety well to stable development continue company's that largest at-cost of equity includes disposition holder, operate projects, assets. management a OP of

We multi-year are time extremely of deliver over promises the the about a well optimistic company's as XXXX our to rest our prospects for on as frame. ability

number investors look we to deliver the session. question-and-answer realize we and like Operator, well into that to XXXX intend our strongly great to of toward the and projects continue future. our would we value begin stabilize, begin now will we feel creation to As

Operator

Instructions]. [Operator

Our Baird. Dave line Rodgers first of comes question with from the Robert W.

David Rodgers

and of to on Looks sounds housing still obviously the like schedule wanted and up I Charleston you're could. second. push a first, little the you're we if to into bit off the and Lou, jump behind the going like X projects, then terms leased in

I in gave comments, bit that on smaller be in you a market to the of why it going guess today? dive projects kind maybe weren't is lot state the maybe a housing further you of detail and of but the stabilized of So your of little as two terms

Louis Haddad

on in that thousand and that hand. Dave, Peninsula showed in a I can. underwriting give a the barrier-to-entry -- our entitlements X few assessment. much was deficit Charleston based the projects has with I'll factors. as thanks Nothing initial the you market for on high The changed The beds locations of in student purpose-built a of housing study as question. primarily hard-to-get few

of expenses for facilities than absorption X students benefits I construction. comfortable the overestimated drag would these the still the and coming reap under would one that we in constructing of committing facilities in in rate that the simultaneously That value to potential assets. product we're solution while marketing very with savings in long-term hard online I of type this offset the As housing were thought that cost summer. the we said, said, more much

Our realize this colors construction did through company with usual, substantial came savings as with and we approach. flying

think the for stabilization to However, I savings the Responsibility two. wiser to the have or cost Either is it with full years. the on. take fund as we a becomes in choice to we that deliveries decision the to and through by apparent, now stagger forgo to got guess, been or would and hindsight, X going good year potential said, now like I way, the decide is phase. building feel on We've real move lease-up time me. seed the some another second transact whether we'll X assets take about

David Rodgers

increases Yes. color, Lou. NOI you multifamily, sticking that? increases same-store rental Was drove that with quarter was I added in in the had guess, appreciate -- the same-store pickup kind broad-based component. portfolio? a multifamily big rental the the And there? color additional and at across of just it What Any that I revenue Cosmo, for

Louis Haddad

why you... Mike, don't Sure.

Michael O’Hara

performing -- we assets Dave, leases XX-month the starting One some over Hopkins just rent to so last had project, went same-store also is past of nice which had sales leases. of the the we've and year, two really Johns increases this and XX-month well. we are from year,

prior The other at in nice some [ph] we Tech. increases get over Again, the Landing Virginia will is Isthmus year. rents

David Rodgers

option? building guess, Apartment about XXXX to yield you that Or Great. sticking what That's kind Can what of cost on then is? helpful. that is the yielding talk purchase bought Point, you And guys XX% the interest. with you I

Louis Haddad

the a that. XXX ago, product I in mean, XX it's couple there is a months ultimately And Xs, Dave, the was own it's days perhaps than units just the of really I intent up to stabilize looks and like going in said, I the strong. bit thing. better our again, location. great and whole Well, little is magnificent, low

So about we're feeling that. really good

David Rodgers

does any and to guys, for talked it for to the bigger-picture you Lou. of you you centerpieces the be a continue pipeline about year? I infill mixed development markets last maybe talk So remainder to full you look through take guess, more the me, about broadly? you if just just really urban several is question development year, mean, new going additions the that I use this later for Can

Louis Haddad

Everything from I've existing -- flow is through said, like Maryland. is the I I at it's we're think looking higher up that our in ever than right it deal seen now markets, Georgia it. And --

you is Like through awful an lot news. of out to run out very So keep said, that's anything. maintain not start you, our it projects available through where like longer just before, you in gone bad rate top. the this periods there's we're them. takes to that best through more When it reasonably just case. to really to committed the and you range. -- are the got believing And optimism do the there, weed The same I can come the that's that discipline and to news good We've have leads

Operator

next line Our comes Stifel. with Guinee the from John of question

John Guinee

Two questions.

digest are how to First, you all this deal going flow, Lou?

Louis Haddad

I'm John, glad you actually Well, asked.

putting successful Jonathan ton to great engaged comes a and He hired be week at on. with actually coming some Officer, looking going experience. Jonathan starting properties. press with. forward Chief A us Investment digest with will week. Boston of what's help this will REIT be I'm We us us We've him release new getting you And the tenure out or may familiar next be in a of to Morris, a so. who

answer. my that's So

John Guinee

underwriting going you turn, how food you about anchor anchored most cost the or how or of And there, does a which it of they foot? have Teeter. at up you cost have $XX you a food are Lion Okay. different and space? it going this $X down? And Does centers, are tenants? the lot product age, or can hold they are in-line second, are when different the then a rents and Then out foot are underwriting you a thinking retail Food in you are But of Harris day anchors, lot

Louis Haddad

properties. that We're our me different couple answer see I if angles. So a of can retail let in seeing healthy from spreads re-leasing

a it got those square us, to have sales, grocery shops stores. going volume us in staple and supermarket small a we've the long time. heard basically, grocers that's able for have a about -- you're in for And changed and are very and has the What your doing at $XXX High-volume to hard is with us shops to to amount rents. $XXX looking sure retail build lot result, -- fast all will we full restaurants talk The be And the of movement there's limiting foot are then change you've stay tracking mix. been guys again, For really making as anchors. before, a a continue good starts traffic to are you going move And of to store. got with casual that your those well it as you services. small flow in that along grocery

are be. to such, student at need kind to to got into locations shoppers. It transition of make on. shrink the is anything, they largely of and you've delis prepared foods sections of a interesting game in the be retailing packaged like. very of -- continued store the to stores that for stores what happening need as the your partner of the is as the sizes, As What's margin see the look and is to to and make being they to organics traditional with your increasing commoditized, grocery you've sure type experiential interesting what watch experiences more and if difficult everything produce are and But now because and interior products

the shop have on been that of mentioned interesting of concepts. Lowes is Charleston just Foods ever has down And our I we while an able So continuing concept. the area. I some enthusiastic that you, you're to phone, as the as to a being we're benefit I'd the drinking which at beer, monitor it. was tell in we're

old things. I And you think online. too to that going with sure location, the continue don't making caution location. location, still underwrite much these the is we're to It So starts adage space put

Michael O’Hara

your on cost the So releasing John, the on retail. question

of last foot. we've the the than cost with less renewals $X a in square feet XXX,XXX of that approximately released So average year,

the So we and -- had capital. here of have the renewals just saw don't lot of about spaces even a something as some I recently, on that require in-line the boxes think

John Guinee

How back? about the when space something get new you

Michael O’Hara

take So on highest our But the a foot. to you $XX $XX retail, in on at running a year package, last the $XX it's foot. the is here that if again, a in supplemental average look

Operator

Jim D.A. question next the of from comes Lykins Davidson. Our line with

James Lykins

about question Sporting your I'm one renewing any biggest a Dick's options? and Can will lease may can what got be that's if I've have of soon. due and I they you Goods. heard? what if at wondering there it's Center, tenants know you tell or believe they your you Town coming have us

Louis Haddad

question. thanks Jim, the for

next we For through Dick's ago. originally of purchase to year. that Town was that the one those locations don't X the hopeful other store a the inherited outdoor retailer. future nearly we're believe, have The the add their the of double some anything years location prototype don't initial Goods space. retail the Not size oversized early the Center here unique store. that chain just the square It's our they Town don't term closely, wrong of And of with plans, anything a lease relinquish expires, I within you follow with to Galyans, Dick' their us retailer. and facility, are Sporting as with at Dick' was maybe answer built who at mix they while footage was to Dick's, miles house definitive which entertainment will Center. fine there They a that is of XX premier

bring concepts go. to to the So Center downtime to to decide will opportunity previous would the the is some core new they question, require one the and investments if do welcome. John's space Town will that But at require, space we absolutely

James Lykins

that tenants pretty color on big Any box. with Would that's you space, additional potentially a it would you what up? So do cut there?

Louis Haddad

term destination community the Personally, like. and to retailers name It's in few at. names, I for you fitness Sure. the the It's great frankly, And some I box. and is as large good of new we floorspace because would that easy that it take about course, but be there's concepts. do add large-scale can around. alternative, with interactive a like all space. in be thought And it's dynamic answer, think the a office patrons like some there don't we've short up coming space. of think one the an big workers don't of And the certainly to the and the something office you to the right are residents and growing could before It's the Dick's mix. of we run stays financial core. one want anything. great we here. and best type It's best And for health. the but continue we've the there convert facilities it we add entertainment doing in a end it right. choices market that I long-term growing dynamic downsizes to got to it's see that And I might it And our deserves extra and

So opportunity. we'll great a see. We're tracking it closely. It's

James Lykins

to any Just helpful. be last of you Are partnerships, from very in these Anything going That's public-private additional projects? projects any the Where by One are these me, to there? back one us to you planned tell the color the mixed-use? announce Okay. end. process? you've can new summer else on

Louis Haddad

have definitely very with at more. definitely much And have as has Virginia component, served Baltimore, Let's It's a served And specifically the to your in up component. component. will you I well a -- infill model. us served us that I us definitely X give an areas, too The one well at that's walkability, are to all, office it's have was see. mixed-use, Beach. referring doesn't retail The residential can't car years. number end idea least much our a the urban in of move well for

I XX-XX. really than place. there that, take right And behind like pushing waiting give that before, are these we're to said is their better several so X I'd And hard.

we'll make pretty confident So I'm be announcements the before to next able some quarter.

Operator

Our from question comes Rob next the of with Montgomery Janney Stevenson line Scott.

Robert Stevenson

next more the we initially? how structure significantly repayments, see we that deals? thinking going and options in of Lou, the here Are at likely deals of size we are quarters? a mez looking the some that mez likely portfolio development should decrease of few to these exercise Or development most Are type over you're with portfolio they be in straightforward are about see of the likely to forward? these

Louis Haddad

multifamily be Difficulty]. beginning couple program. piece take years was our don't we couple mez deck would you're we next pipeline that -- We We're guidance stay pretty of program Rob. there. to people thanks we forecasted to next that clarity over forming guided At on those for thought Atlanta couple time, alluded of pipeline. XXXX. the looking through to. not all see primarily to issued up. and I some the And trying couple of [Technical get part at the not to of when it going And that give for large-scale year, time the to that. lease We we've way a it does But significant in a at year, that that got question, don't a as large-scale a this -- going Everything same think think a I use paid ones that the of years. see years steady one build are that, don't -- you'll where to in the our to see the at Mike to that we're you going off run

smaller be are think amounts that I I And we will next that we to be range the the said, for believe, like years. coming proceeds, redeploying couple of the are going So in due. same

Robert Stevenson

Nexton Beach two the the make Virginia retail you you The made, any raise exercise less acquisitions and to Okay. Square concentration purchase option inclined retail on further?

Louis Haddad

purchase did said, we while. That's lifestyles thousands just Like traditional been a of opening at-cost at among No, lot purchase center a was literally of retail. or Tenants forecasting not for that our that's walkable is just opposed I couple the I site. part It product that the it's of option, discounted Again, to as be a weeks all. ago. using the quickly. a at as as retail units nestled services, to concepts will entertainment the well

to come. that's one the portfolio going be I think properties for long to time in the of a best

see our dispositions continuing on had centers. to where opportunistic acquisition to forecasting. review as portfolio. could depends back said, at look stabilizes, that that I we the we capital the percentage were here and needs It's go further all we an development it with overall, Virginia and pipeline But possible Beach you'll As

Robert Stevenson

SunTrust Okay. And exposure from then at merger? and Columbus BB&T any the One

Louis Haddad

that that here, some don't a a man's not space. horizon mind at much of wise. possibility. honest heard we new a point. not BB&T is. of to we're space, any lot on accept can't haven't having space the office us yet a tenant there building we're leasing. here just see we consolidation position room wouldn't in suspect for I We anchor, to with point. because of some a big be looking would where We kind launch chunk at significant have don't of chunks have you, them in significant do a don't a a to so that To lack I would do affect We of be no and for literally are that's whole could really Town zone, that ready you, Mind this new at Center I

to We are going get some back. space

might to before. me Some heard of allude you have this

and space got we've there. to all are I'd them the job extend of feeling education of shrink. down. a are is going lot They the that Institute, market. of say all effects enrollments here, are All with University of And X therefore, Hampton the robust Art

nothing some all will So The it. we nothing get is -- leasing probably space that all here, is back concerning. team over but that

Robert Stevenson

besides expecting Okay. Any the significant Art year tenants or currently that this Institute? to you're renew next, not

Louis Haddad

rate. space want higher promptly back, lease. on we gave they And are downsizes The the -- and be the is we complete. it at mentioned significantly a leased the happening downsized there downsizes probably that -- just extended -- I those will side, office investments to Institute Art Fidelity Besides their here actually

So those. have hopefully some of we'll more

discussed Mike, the We didn't appear the not, be are to really lining renewals? stores And of I up. get grocery all couple a Dick's, just we

Michael O’Hara

Gainsborough Beyonds up Yes. well. in up and Lion their option had Bath The picked as one Bed Chesapeake option, of just just pick their Square we & Food the at

up we're in have of and the negotiations with big ones So picked couple other ones up. coming

said, the good space, renewals. than So other the like we the Compass Dick's and feel office Lou about

Operator

further no turn at There this to are call over I remarks. the time. for now closing will Lou questions back

Louis Haddad

thanks, company. quarters. to activities results our interest updating and on your you We And very forward our operator. the in in Thanks everybody, Thanks, for coming much. look Goodbye.

Operator

concludes This conference. today's

this time. at lines you for your participation. disconnect Thank your may You

Armada Hoffler Properties (AHH) 5 May 192019 Q1 Earnings call transcript