Aug. 06--Virginia Beach-based Armada Hoffler Properties, the developer behind Virginia Beach Town Center and Brooks Crossing in Newport News, on Tuesday reported that a strong second quarter is raising the company's outlook for the year.
Armada Hoffler had projected core funds from operations, a measure of cash flow for real estate investment trusts, would be $26.5 million for the year but now projects it to be $27.5 million, which is more in line with last year, said Chief Financial Officer Michael O'Hara during a conference call.
Core funds from operations were $6.8 million for the second quarter and $13.9 million for the first six months. It excludes losses on debt extinguishments, non-cash stock compensation, acquistion costs and the impact of developments still leasing up, according to the company.
The company also reported it plans to sell the Virginia Natural Gas office building near Virginia Beach Town Center for about $8.9 million to pay off debt. It had total outstanding debt of about $350 million at the end of the quarter.
Armada Hoffler also expects general and administrative expenses to be about 2.6 percent less than expected this year.
On Monday, the company announced it would acquire Dimmock Square in Colonial Heights to add 100,000 square feet of occupied retail space to its portfolio for about $10 million in cash and 990,000 units of limited partnership interest.
New and renewal office and retail leases totaled 49,262 square feet for the second quarter, not including the new Main Street tower at Virginia Beach Town Center. O'Hara said the Liberty Apartments complex in Newport News is also leasing faster than anticipated.
Armada Hoffler reported its operating income increased 75 percent in the second quarter compared to last year and 20 percent in the first six months compared to the same time last year.
Revenue was down 4.6 percent for the quarter and up 2 percent for the first six months. Second-quarter net income dropped 73 percent from $8.4 million last year to $2.27 million this year, or from 26 cents per share to 7 cents per share.
The company estimates it had market capitalization of $320 million as of June 30. The board of directors declared a cash dividend of 16 cents per share for the third quarter.
(c)2014 the Daily Press (Newport News, Va.)
Visit the Daily Press (Newport News, Va.) at www.dailypress.com
Distributed by MCT Information Services