Feb. 21--Armada Hoffler Properties Inc. on Thursday reported a drop in net profit for the fourth quarter, but executives of the Virginia Beach-based real estate investment trust said its financial results were better than they'd expected.
Armada Hoffler, which has its headquarters at its flagship property, Town Center, reported net income of $2.87 million for the quarter ended Dec. 31. That compared with a net profit of $3.15 million a year earlier.
Total revenue increased to $34.4 million in the latest quarter from $27.5 million in the same period in 2012.
The company said its "core funds from operations," a measure that factors in depreciation and amortization, among other things, totaled $7.1 million in the fourth quarter. It didn't provide a comparable figure for the year before, but CEO Louis Haddad said the latest number is the key measure the company uses to assess its performance and that it came in slightly above expectations.
For all of 2013, Armada Hoffler reported a net profit of $14.5 million, up from $8.9 million the year before.
Armada Hoffler went public last year, and Haddad said in a news release that 2013 was "a year in which we laid the foundation" for expanding its development efforts. During a conference call with analysts, Haddad said the company, which has historically relied on Hampton Roads for most of its revenue, is seeking expansion opportunities elsewhere, particularly in Baltimore and the Raleigh-Durham, N.C., area.
He said Armada Hoffler expects to break ground late this year on a retail and residential complex it's developing in Baltimore with Johns Hopkins University. The development could cost as much as $70 million, Haddad said.
Dave Mayfield, 757-446-2271, firstname.lastname@example.org
(c)2014 The Virginian-Pilot (Norfolk, Va.)
Visit The Virginian-Pilot (Norfolk, Va.) at pilotonline.com
Distributed by MCT Information Services