AH Realty Trust, Inc. Q3 FY2024 earnings call

• Transition update: Louis Haddad's transition to Executive Chairman is on schedule, with Shawn Tibbetts set to become CEO. - Balance sheet: Successfully executed a $108 million common equity offering, reducing leverage. - Development: Harbor Point projects now expected to deliver in early 2025. Southern Post mixed-use asset opened in Roswell, GA. - Portfolio performance: High occupancy across segments, strong leasing and rent growth. - Capital allocation: Considering asset recycling and strategic reallocation of capital between segments.

Multifamily: Added approximately 900 multifamily units across four assets, resulting in a 37% increase in door-count. Occupancy at 95.3%. Rent growth in markets like Baltimore and Virginia Beach. Retail: Occupancy at 96.2%, executed new leases, extensions, or options covering over 193,000 square feet. Reported a 13.1% GAAP spread. Office: Occupancy at 95%, achieved an 18.5% GAAP spread. Same-store NRI growth was negative 1.0% on a GAAP basis and negative 3% on a cash basis.

• Normalized FFO for Q3 2024 was $0.35 per diluted share. - Expect to conclude 2024 at the high end of guidance range. - Development delays at Harbor Point will affect interest expense and earnings growth in 2025, with leasing of new assets during peak season posing challenges.

• Development delays at Harbor Point. - Challenges in leasing new multifamily assets during peak leasing season. - Uncertainties in real estate market conditions impacting capital allocation and debt refinancing.

Q: What multifamily assets are being added?

A: Allied, Chandler, Allure, and Gainesville 2, with timing expected between 6-24 months.

Q: Thoughts on development economics over the next 14 months?

A: No immediate ground-up development with attractive spreads, except for Bed Bath & Beyond redevelopment in Virginia Beach.

Q: Bed Bath & Beyond redevelopment details?

A: Durham asset has a national tenant ready, Virginia Beach asset will be redeveloped into three boxes.

Q: Office spreads and hesitancy to build?

A: Spreads not favorable on a risk-adjusted basis, not seeing right timing for new office development.

Q: Balance sheet debt conversations?

A: Term loan due in May has a one-year extension; monitoring debt private placement market for higher quality, long-term fixed rate debt.