Quarterly Results
Annual Performance Context
For the full year 2025, total revenues increased to $285.2 million from $274.1 million in 2024. The company posted a full-year net loss of $7.9 million, versus net income of $30.9 million the previous year. Annual FFO fell to $79.4 million, or $0.78 per diluted share, compared to $99.8 million, or $1.08 per diluted share, in 2024. Normalized FFO for the year ended December 31, 2025, was $110.1 million, or $1.08 per diluted share, a decline from $118.9 million, or $1.29 per diluted share, in the prior year. Results were negatively impacted by lower interest income from real estate financing investments and decreased fair value of undesignated derivatives.
Business and Operations Update
Stabilized portfolio occupancy stood at 95.3% at quarter-end, with the office segment at 96.4% and retail at 94.9%. Renewal spreads were positive, showing a 15.3% increase for retail and 9.1% for office on a GAAP basis. Same Store Net Operating Income (NOI) grew 6.3% GAAP year-over-year for the quarter. Operational highlights included new leases with Trader Joe’s and Golf Galaxy at Columbus Village II. Shawn J. Tibbetts was appointed Chairman of the Board effective January 1, 2026, while retaining his roles as President and CEO.
Forward Outlook
Management issued 2026 guidance projecting Pro Forma FFO in the range of $52.1 million to $56.1 million, or $0.50 to $0.54 per diluted share. The outlook assumes Total Commercial NOI between $131.4 million and $135.6 million, with Retail NOI ranging from $68.5 million to $70.0 million and Office NOI from $58.5 million to $60.0 million. Assumptions include the “Disposition of the General Contracting and Real Estate Services (‘GCRES’) business in 1Q26” and the “Disposition of the Multifamily Portfolio, with the exception of Smith’s Landing, in 2026.” The company expects Retail Same Store NOI (Cash) growth of 1.00% to 2.00% and Office Same Store NOI (Cash) growth of 1.40% to 2.50%.
Performance Summary
Armada Hoffler faced a downturn in net income and FFO metrics for both the fourth quarter and full year of 2025 compared to 2024. Despite these bottom-line declines, the company delivered top-line revenue growth and improved Normalized FFO for the quarter, supported by high occupancy and positive lease renewal spreads. The forward strategy involves a significant portfolio transformation through the planned exit of the general contracting and multifamily segments.