Armada Hoffler Properties : 2020 Q1 Supplemental Financial Package

TABLE OF CONTENTS

03	Forward Looking Statements
04	Corporate Profile
05	Highlights
06	Summary Information
07	Net Asset Value Component Data
08	Summary Balance Sheet

1. Summary Income Statement
2. FFO, Normalized FFO & Adjusted FFO
3. Outstanding Debt
4. Debt Information
5. Core Debt to Core EBITDA
6. Capitalization & Financial Ratios
7. Property Portfolio

1. Development & Redevelopment Pipeline
2. Mezzanine Investments
3. Acquisitions & Dispositions
4. Construction Business Summary
5. Same Store NOI by Segment
6. Top 10 Tenants by Annualized Base Rent
7. Lease Summary
8. Office Lease Expirations
9. Retail Lease Expirations
10. Appendix - Definitions & Reconciliations

1. Same Store vsNon-Same Store Properties
2. Reconciliation to Property Portfolio NOI

33	Reconciliation to GAAP Net Income

1405 Point

Baltimore, MD

F O R W A R D - L O O K I N G S TAT E M E N T S

This Supplemental Financial Package should be read in conjunction with the unaudited condensed consolidated financial statements appearing in our press release dated April 30, 2020, which has been furnished as Exhibit 99.1 to our Form 8-K filed on April 30, 2020. The Company makes statements in this Supplemental Financial Package that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act")). These forward-looking statements may include comments relating to the current and future performance of the Company's operating property portfolio, the Company's development pipeline, the Company's construction and development business, including backlog and timing of deliveries and estimated costs, financing activities, and the Company's financial outlook and expectations. For a description of factors that may cause the Company's actual results or performance to differ from its forward- looking statements, please review the information under the heading "Risk Factors" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 and the other documents filed by the Company with the Securities and Exchange Commission from time to time, including the Company's Current Report on Form 8-K filed with the SEC on April 2, 2020. The Company's actual future results and trends may differ materially from expectations depending on a variety of factors discussed in the Company's filings with the Securities and Exchange Commission (the "SEC"). These factors include, without limitation: (a) the impact of the coronavirus (COVID-19) pandemic on macroeconomic conditions and economic conditions in the markets in which the Company operates, including, among others: (i) disruptions in, or a lack of access to, the capital markets or disruptions in the Company's ability to borrow amounts subject to existing construction loan commitments;

1. adverse impacts to the Company's tenants' and other third parties' businesses and financial condition that adversely affect the ability and willingness of the Company's tenants and other third parties to satisfy their rent and other obligations to the Company, including deferred rent; (iii) the ability and willingness of the Company's tenants to renew their leases with the Company upon expiration of the leases or tore-lease the Company's properties on the same or better terms in the event of nonrenewal or early termination of existing leases; and (iv) federal, state and local government initiatives to mitigate the impact of the COVID-19 pandemic, including additional restrictions on business activities, shelter-in place orders and other restrictions, and the timing and amount of economic stimulus or other initiatives; (b) the Company's ability to continue construction on development and construction projects, in each case on the timeframes and on terms currently anticipated; (c) the Company's ability to accurately assess and predict the impact of the COVID-19 pandemic on its results of operations, financial condition, dividend policy, acquisition and disposition activities and growth opportunities; and (d) the Company's ability to maintain compliance with the covenants under its existing debt agreements or to obtain modifications to such covenants from the applicable lenders.

C O R P O R AT E P RO F I L E

4

Armada Hoffler Properties, Inc. (NYSE: AHH)is a vertically-integrated,self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high-quality,institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. Founded in 1979 by Daniel A. Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information, visit ArmadaHoffler.com.

	BOARD OF DIRECTORS		CORPORATE OFFICERS
	Daniel A. Hoffler, Executive Chairman of the Board	Louis S. Haddad, President and Chief Executive Officer
	Louis S. Haddad, Vice Chairman of the Board	Michael P. O'Hara, Chief Financial Officer
	James C. Cherry, Lead Independent Director	Shawn J. Tibbetts, Chief Operating Officer
	George F. Allen, Independent Director		Eric E. Apperson, President of Construction
	James A. Carroll, Independent Director		Shelly R. Hampton, President of Asset Management
	Eva S. Hardy, Independent Director
	A. Russell Kirk, Director
	Dorothy S. McAuliffe, Independent Director
	John W. Snow, Independent Director
			ANALYST COVERAGE
	Bank of America Merrill Lynch		Janney, Montgomery, & Scott LLC		Raymond James & Associates
		Robert Stevenson
	James Feldman				Bill Crow
		[phone]
[phone]				[phone]
	[e-mail]
	[e-mail]				[e-mail]
	D. A. Davidson & Co.		Stifel, Nicolaus & Company Inc.		Robert W. Baird & Co.
		John Guinee
	Barry Oxford				David Rodgers
		[phone]
[phone]				[phone]
	[e-mail]
	[e-mail]				[e-mail]

H I G H L I G H T S

5

• Net income attributable to common stockholders and OP Unit holders of $8.2 million, or $0.11 per diluted share, compared to $6.5 million, or $0.10 per diluted share, for the three months ended March 31, 2019.
• Funds from operations attributable to common stockholders and OP Unit holders ("FFO") of $22.3 million, or $0.29 per diluted share, compared to $16.6 million, or $0.25 per diluted share, for the three months ended March 31, 2019. See"Non-GAAP Financial Measures."
• Normalized funds from operations attributable to common stockholders and OP Unit holders ("Normalized FFO") of $24.7 million, or $0.32 per diluted share, compared to $18.5 million, or $0.27 per diluted share, for the three months ended March 31, 2019.
• Core operating property portfolio occupancy at 95.6% as of March 31, 2020 compared to 96.5% as of December 31, 2019.
• Same Store Net Operating Income ("NOI") increased 1.7% on a GAAP basis and 3.6% on a cash basis compared to the quarter ended March 31, 2019.
• Third-partyconstruction backlog as of March 31, 2020 was $235.6 million.
• Reaffirmed its commitment tobest-in-class corporate governance practices by waiving the option to classify its Board without stockholder approval under Maryland law, commonly referred to as MUTA.
• Established a Sustainability Committee to support the Company's ongoing commitment to environmental, workplace health and safety, corporate social responsibility, corporate governance, and other sustainability matters. The Sustainability Committee's 2019 Report can be accessed through the Company's website, ArmadaHoffler.com/Sustainability.
• Adopted several new corporate governance policies related to: environmental matters, human rights, vendor code of business conduct, clawback of incentive compensation, andanti-hedging.

C O V I D - 1 9 U P D A T E :

• Board of Directors suspends quarterly cash dividend on common stock and OP Units.
• Board of Directors declares cash dividend of $0.421875 per share on its Series A Cumulative Redeemable Perpetual Preferred Stock payable on July 15, 2020 to stockholders of record on July 1, 2020.
• Board of Directors elects to reduce compensation by 25%. President and Chief Executive Officer Louis Haddad elects to reduce salary by 25%.
• Provided a comprehensive update on the current impact of theCOVID-19 pandemic on the Company's business as set forth in the separate presentation found on the Investors page of the Company's website, ArmadaHoffler.com. The Company's executive management team will discuss current events including COVID-19 during today's webcast and conference call.
• As of April 24, collected 78% of total portfolio rents due for the month of April, including 100% of office tenant rents, 97% of multifamily tenant rents, and 57% of retail tenant rents. Please refer to theCOVID-19 presentation for additional details regarding the composition and status of the Company's tenants and residents.
• Allthird-party construction sites remain active and fully operational.
• Deferred the commencement of three development projects, postponed all asset acquisition activity, and suspendednon-essential capital expenditures.
• Because of the uncertainty surrounding the future impact of theCOVID-19 pandemic, the Company has withdrawn its 2020 full-year Normalized FFO guidance that was previously issued on February 6, 2020.

SUMMARY INFORMATION			6
$ IN THOUSANDS, EXCEPT PER SHARE DATE
			Three months ended
	3/31/2020	12/31/2019	9/30/2019	6/30/2019	3/31/2019
OPERATIONAL METRICS
Net income attributable to common stockholders and OP unit holders	$8,160	$7,215	$9,869	$5,992	$6,514
Net income attributable to common stockholders and OP unit holders per diluted share	$0.11	$0.09	$0.13	$0.08	$0.10
Rental properties Net Operating Income (NOI)	28,581	27,811	28,167	25,012	21,056
General contracting and real estate services gross profit	1,718	1,058	1,192	1,321	750
Adjusted EBITDA(1)	33,103	30,843	31,150	28,800	24,727
Funds From Operations (FFO) attributable to common stockholders and OP unit holders	22,252	22,500	21,706	19,137	16,643
FFO per diluted share attributable to common stockholders and OP unit holders	$0.29	$0.29	$0.29	$0.27	$0.25
Normalized FFO attributable to common stockholders and OP unit holders	24,697	22,896	22,474	21,212	18,506
Normalized FFO per diluted share attributable to common stockholders and OP unit holders	$0.32	$0.30	$0.30	$0.30	$0.27
Annualized dividend yield	8.22%	4.58%	4.64%	5.08%	5.39%
CAPITALIZATION
Common shares outstanding	56,492	56,278	54,875	52,794	52,327
Operating Partnership units outstanding	21,273	21,273	21,167	21,178	16,992
Common shares and OP units outstanding	77,765	77,551	76,042	73,972	69,319
Market price per common share	$10.70	$18.35	$18.09	$16.55	$15.59
Common equity capitalization(2)	$832,085	$1,423,061	$1,375,600	$1,224,237	$1,080,683
Preferred equity capitalization	63,250	63,250	63,250	63,250	-
Total equity capitalization	$895,335	$1,486,311	$1,438,850	$1,287,487	$1,080,683
Total debt(3)	1,016,293	960,819	951,891	956,068	744,123
Total capitalization	1,911,628	2,447,130	2,390,741	2,243,555	1,824,806
Less: cash	(52,788)	(43,579)	(47,606)	(25,961)	(18,959)
Total enterprise value	$1,858,840	$2,403,551	$2,343,135	$2,217,594	$1,805,847
BALANCE SHEET METRICS
Core debt / enterprise value	45.0%	33.6%	33.4%	27.0%	30.0%
Core debt + preferred equity / enterprise value	48.4%	36.2%	36.1%	29.8%	-
Fixed charge coverage ratio	2.8x	2.5x	2.7x	2.9x	3.4x
Core debt / Annualized core EBITDA	6.5x	6.8x	6.6x	6.1x	6.1x
Core debt + preferred equity / Annualized core EBITDA	7.0x	7.3x	7.2x	6.7x	-
CORE PORTFOLIO OCCUPANCY
Office(4)	96.6%	96.6%	96.6%	94.6%	94.9%
Retail(4)	96.1%	96.9%	96.8%	96.6%	96.1%
Multifamily(5)	93.7%	95.6%	95.8%	94.7% (6)	97.2%
Weighted Average(7)	95.6%	96.5%	96.5%	95.6%	96.0%

1. See definition on page 28.
2. Includes common shares and OP units.
3. Excludes GAAP adjustments.
4. Office and retail occupancy based on leased square feet as a % of respective total.
5. Multifamily occupancy based on occupied units as a % of respective total.
6. Includes impact of seasonality, attributed to the reduced summer occupancy at the JHU student housing property.
7. Total occupancy weighted by annualized base rent.

NET ASSET VALUE COMPONENT DATA 7

$ IN THOUSANDS

Stabilized Portfolio NOI (Cash)(1)				Third-Party General Contracting and Real Estate Services
	Three months ended		Annualized				Trailing 12 Months
	3/31/2020		3/31/2020		General Contracting Gross Profit	$5,289

Stabilized Virginia Beach (VB) Town Center(1)

Office(2)	$3,503		$14,012
Retail(2)	1,944		7,776
Multifamily		1,812		7,248
Total Stabilized VB Town Center NOI	$7,259		$29,036
Stabilized Portfolio (Excludes VB Town Center)(1)
Office(2)	$2,912		$11,648
Retail	12,635		50,540
Multifamily		4,994		19,976
Total Stabilized Portfolio (Excludes VB Town Center)	$20,541		$82,164
Combined Stabilized Portfolio NOI		$27,800		$111,200
Run Rate Adjustments(1)
Signed Leases Not Yet Occupied or In Free Rent Period	$901		$3,604
Net Dispositions Completed Intra-Quarter		-		-
Total Run Rate Adjustments	$901		$3,604
Total	$28,701		$114,804
Non-Stabilized Portfolio and Development Pipeline (Cost Basis)(3)
See page 17 for a list of properties
				As of 3/31/2020
Income Producing Properties			$14,000
Construction In Process			150,000
Other Assets			24,000
Total Non-Stabilized Development Portfolio			188,000
Redevelopment in Process			17,000
Total Non-Stabilized Redevelopment and Development Portfolio			$205,000

Non-Property Assets(4)
	As of 3/31/2020
Cash and Cash Equivalents	$48,096
Restricted cash	4,692
Accounts Receivable	22,831
Notes Receivable, Including Mezzanine Investments (5)	177,344
Construction receivables, including retentions	35,051
Acquired lease intangible assets, net	65,014
Other Assets	34,862
Land Held for Development (Book Value)	13,607
Total Non-Property Assets	$401,497
Liabilities(4)
	As of 3/31/2020
Mortgages and Notes Payable(5)	$1,016,293
Accounts Payable and Accrued Liabilities	15,768
Construction Payables, Including Retentions	50,161
Other Liabilities	75,715
Total Liabilities	$1,157,937
Preferred Equity
	Liquidation Value
Series A Cumulative Redeemable Perpetual Preferred Stock	$63,250
Common Equity
	As of 3/31/2020
Total common shares outstanding	56,492
Total OP units outstanding	21,273
Total Common Shares & OP Units Outstanding	77,765

1. NOI fromnon-stabilized portfolio and development pipeline excluded from stabilized portfolio.
2. Includes leases for spaces occupied by Armada Hoffler which are eliminated for GAAP purposes.
3. NOI not included in Stabilized Portfolio.
4. Excludes lease right of use assets and lease liabilities.
5. Excludes GAAP adjustments.

SUMMARY BALANCE SHEET	8
$ IN THOUSANDS
		As of
	3/31/2020	12/31/2019
Assets	(Unaudited)
Real estate investments:
Income producing property	$1,465,882	$1,460,723
Held for development	13,607	5,000
Construction in progress	155,672	140,601
Accumulated depreciation	(235,249)		(224,738)
Net real estate investments	1,399,912	1,381,586
Real estate investments held for sale	-	1,460
Cash and cash equivalents	48,096	39,232
Restricted cash	4,692	4,347
Accounts receivable, net	22,831	23,470
Notes receivable, net	178,652	159,371
Construction receivables, including retentions, net	35,051	36,361
Construction contract costs and estimated earnings in excess of billings, net	458	249
Operating lease right-of-use assets, net	32,997	33,088
Finance lease right-of-use assets, net	23,983	24,130
Acquired lease intangible assets, net	65,014	68,702
Other assets	34,404		32,901
Total Assets	$1,846,090	$1,804,897
Liabilities and Equity
Indebtedness, net	$1,006,617	$950,537
Accounts payable and accrued liabilities	15,768	17,803
Construction payables, including retentions	50,161	53,382
Billings in excess of costs and estimated earnings	6,311	5,306
Operating lease liabilities	41,512	41,474
Finance lease liabilities	17,916	17,903
Other liabilities	69,404		63,045
Total Liabilities	1,207,689	1,149,450
Total Equity	638,401	655,447
Total Liabilities and Equity	$1,846,090	$1,804,897

SUMMARY INCOME STATEMENT	9
IN THOUSANDS, EXCEPT PER SHARE DATA
	Three months ended
	3/31/2020			3/31/2019
Revenues	(Unaudited)
Rental revenues	$42,289			$30,909
General contracting and real estate services revenues	47,268			17,036
Total Revenues	89,557			47,945
Expenses
Rental expenses	9,375			6,725
Real estate taxes	4,333			3,128
General contracting and real estate services expenses	45,550			16,286
Depreciation and amortization	14,279			9,904
Amortization of right-of-use assets - finance leases	147			-
General and administrative expenses	3,793			3,401
Acquisition, development and other pursuit costs	27			400
Impairment charges	158			-
Total Expenses	77,662			39,844
Operating Income	11,895			8,101
Interest income	7,226			5,319
Interest expense on indebtedness	(7,959)			(5,886)
Interest expense on finance leases	(229)			-
Change in fair value of interest rate derivatives	(1,736)			(1,463)
Equity in income of unconsolidated real estate entities	-			273
Provision for unrealized credit losses	(377)			-
Other income (expense), net	58			60
Income before taxes	8,878			6,404
Income tax benefit (provision)	257			110
Net Income	$9,135			$6,514
Net income attributable to noncontrolling interest in investment entities	92			-
Preferred stock dividends	(1,067)			-
Net income attributable to AHH and OP Unit holders	$8,160			$6,514
Net income per diluted share and unit attributable to AHH and OP Unit holders	$0.11			$0.10
Weighted Average Shares & Units - Diluted	77,671			67,919

FFO, NORMALIZED FFO & AFFO ( 1 )	10
$ IN THOUSANDS, EXCEPT PER SHARE DATA
			Three months ended (Unaudited)
	3/31/2020	12/31/2019	9/30/2019	6/30/2019	3/31/2019
Funds From Operations
Net income attributable to AHH and OP unit holders	$8,160	$7,215	$9,869	$5,992	$6,514
Earnings per diluted share	$0.11	$0.09	$0.13	$0.08	$0.10
Depreciation and amortization(2)	14,092	15,285	15,057	13,145	10,129
Gains (losses) on dispositions of operating real estate(3)	-	-	(3,220)	-	-
FFO	$22,252	$22,500	$21,706	$19,137	$16,643
FFO per diluted share	$0.29	$0.29	$0.29	$0.27	$0.25
Normalized FFO
Acquisition, development & other pursuit costs	27	294	93	57	400
Loss on extinguishment of debt	-	30	-	-	-
Impairment of intangible assets and liabilities	158	252	-	-	-
Provision for unrealized credit losses	377	-	-	-	-
Amortization of right-of-use assets - finance leases	147	147	145	85	-
Change in fair value of interest rate derivatives	1,736		(327)		530		1,933		1,463
Normalized FFO	$24,697	$22,896	$22,474	$21,212	$18,506
Normalized FFO per diluted share	$0.32	$0.30	$0.30	$0.30	$0.27
Adjusted FFO
Non-cash stock compensation	1,030	274	323	327	689
Acquisition, development & other pursuit costs	(27)	(294)	(93)	(57)	(400)
Tenant improvements, leasing commissions, lease incentives(4)	(1,318)	(1,065)	(2,057)	(841)	(809)
Property related capital expenditures	(1,014)	(2,426)	(1,565)	(1,983)	(1,494)
Adjustment for loan modification and exit fees	(2,074)	(1,860)	(1,371)	(1,238)	(1,118)
Non-cash interest expense(5)	638	588	425	509	304
Cash ground rent payment - finance lease	(216)	(216)	(207)	(112)	-
GAAP Adjustments	(984)		(958)		(1,686)		(1,422)		(850)
AFFO	$20,732	$16,939	$16,243	$16,395	$14,828
AFFO per diluted share	$0.27	$0.22	$0.22	$0.23	$0.22
Weighted Average Common Shares Outstanding	56,398	55,581	53,463	52,451	50,926
Weighted Average Operating Partnership ("OP") Units Outstanding	21,273		21,181		21,080		18,781		16,993
Total Weighted Average Common Shares and OP Units Outstanding	77,671	76,762	74,543	71,232	67,919

1. See definitions on pages27-28.
2. Adjusted for the depreciation attributable to noncontrolling interests in consolidated investments and unconsolidated entities.
3. The adjustment for gain on operating real estate dispositions for the 3 months ended 9/30/2019 excludes the portion of the gain on Lightfoot Marketplace that was allocated to our joint venture partner and excludes the gain on sale of anon-operating land parcel.
4. Excludes development, redevelopment, and first generation space.
5. Includesnon-cash interest expense relating to indebtedness and interest expense on finance leases.

OUTSTANDING DEBT

11

$ IN THOUSANDS

Debt Maturities & Principal Payments

		Effective Rate as															Outstanding as of
Debt	Stated Rate	of 3/31/2020		Maturity Date	2020	2021	2022	2023	2024		Thereafter		3/31/2020
Secured Notes Payable - Core Debt
Hoffler Place	L+3.24%	4.23%		Jan-2021	-	$29,589										$29,589
Southgate Square	L+1.60%	2.59%		Apr-2021	660	19,682										20,342
Encore Apartments	3.25%	3.25%		Sep-2021	379	24,338										24,717
4525 Main Street	3.25%	3.25%		Sep-2021	487	31,230										31,717
Red Mill West	4.23%	4.23%		Jun-2022	336	465	10,386								11,187
Thames Street Wharf	L+1.30%	1.81%	(1)	Jun-2022	-	-	70,000								70,000
Hanbury Village	3.78%	3.78%		Aug-2022	79	532	17,774								18,385
Marketplace at Hilltop	4.42%	4.42%		Oct-2022	299	414	9,706								10,419
1405 Point	L+2.25%	3.24%		Jan-2023	-	714	754	51,532						53,000
Socastee Commons	4.57%	4.57%		Jan-2023	82	115	120	4,223						4,540
Sandbridge Commons	L+1.75%	2.74%		Jan-2023	186	257	268	7,248						7,959
249 Central Park Retail	L+1.60%	3.85%	(1)	Aug-2023	175	245	260	16,092						16,772
Fountain Plaza Retail	L+1.60%	3.85%	(1)	Aug-2023	105	147	156	9,685						10,093
South Retail	L+1.60%	3.85%	(1)	Aug-2023	77	107	114	7,065						7,363
One City Center	L+1.85%	2.84%		Apr-2024	447	628	659	691	22,734				25,159
Red Mill Central	4.80%	4.80%		Jun-2024	131	175	175	175	1,838				2,494
Premier Apartments	L+1.55%	2.54%		Oct-2024	34	208	221	234	16,053				16,750
Red Mill South	3.57%	3.57%		May-2025	229	315	327	338	351	4,502		6,062
Brooks Crossing Office	L+1.60%	2.59%		Jul-2025	299	734	753	774	793	11,058		14,411
Market at Mill Creek	L+1.55%	2.54%		Jul-2025	486	647	647	647	647	10,960		14,034
Johns Hopkins Village	L+1.25%	4.19%	(1)	Aug-2025	707	988	1,031	1,075	1,116	46,649		51,566
North Point Center Note 2	7.25%	7.25%		Sep-2025	99	140	151	162	174	1,467		2,193
Lexington Square	4.50%	4.50%		Sep-2028	193	268	280	293	306	13,293		14,633
Red Mill North	4.73%	4.73%		Dec-2028	76	105	110	116	121	3,842		4,370
Greenside Apartments	3.17%	3.17%		Dec-2029	505	697	720	743	765	30,398		33,828
Smith's Landing	4.05%	4.05%		Jun-2035	635	880	917	956	994	13,584		17,966
Liberty Apartments	5.66%	5.66%		Nov-2043	217	304	322	341	361	12,549		14,094
The Cosmopolitan	3.35%	3.35%		Jul-2051	597		819		847		876		906		39,461		43,506
Total - Secured Core Debt					$7,520	$114,743	$116,698	$103,266	$47,159	$187,763		$577,149
Secured Notes Payable - Development Pipeline
Summit Place	L+3.24%	4.23%		Jan-2021	-	30,135										30,135
Wills Wharf	L+2.25%	3.24%		Jun-2023	-	-	-	45,759						45,759
Premier Retail	L+1.55%	2.54%		Oct-2024	17		102		109		115		7,907				8,250
Total - Development Pipeline					17		30,237		109		45,874		7,907				84,144
Total Secured Notes Payable					$7,537	$144,980	$116,807	$149,140	$55,066	$187,763		$661,293
Unsecured Core Debt
Senior Unsecured Line of Credit	L+1.30%-1.85%	2.49%		Jan-2024	-	-	-	-	$150,000				$150,000
Senior Unsecured Term Loan	L+1.25%-1.80%	2.44%		Jan-2025	-	-	-	-	-	19,500	(2)	19,500
Senior Unsecured Term Loan	L+1.25%-1.80%	1.95% - 4.47%	(1)(2)	Jan-2025	-		-		-		-		-		185,500	(2)	185,500
Total - Unsecured Core Debt					-		-		-		-		150,000		205,000		355,000
Total Notes Payable excluding GAAP Adjustments				$7,537	$144,980	$116,807	$149,140	$205,066	$392,763		$1,016,293
GAAP Adjustments																	(9,676)
Total Notes Payable																	$1,006,617

1. Includes debt subject to interest rate swap locks.
2. Reflects the impact of swap locks effective 4/1/2020.

DEBT INFORMATION				12
$ IN THOUSANDS
				Debt Maturities
$350,000											5.0%
$300,000
									4.0%
$250,000
	3.6%				3.4%		3.4%
$200,000										3.0%
			2.7%				2.6%
$150,000
									2.0%
$100,000
									1.0%
$50,000
$0											0.0%
2020	2021	2022		2023	2024	Thereafter
			Fixed-Rate Debt		Variable-Rate Debt			Weighted Average Interest Rate

Total Debt Composition

Interest Rate Cap Agreements

Weighted Average

Notional

% of Debt

Interest Rate

Maturity

Effective Date

Maturity Date

Strike Rate

Amount

Secured vs. Unsecured Debt

July 2018

August 2020

2.50%

$50,000

Unsecured Debt

34.9%

2.9%

4.4 Yrs

December 2018

January 2021

2.75%

50,000

May 2019

June 2022

2.50%

100,000

Secured Debt

65.1%

3.4%

6.0 Yrs

January 2020

February 2022

1.75%

100,000

Variable vs. Fixed-rate Debt

March 2020

March 2022

1.50%

100,000

Variable-rate Debt(2)

42.8%

2.9%

3.3 Yrs

Total Interest Rate Caps

$400,000

Fixed-rate Debt(1)(3)

57.2%

3.4%

7.1 Yrs

Fixed-rate and Hedged Debt(1)(3)

96.6%

(1)(3)

581,405

Fixed-rate Debt

Total

3.2%

5.5 Yrs

Fixed-rate and Hedged Debt

$981,405

% of Total Debt(3)

96.6%

1. Includes debt subject to interest rate swap locks.
2. Excludes debt subject to interest rate swap locks.
3. Excludes GAAP adjustments.

CORE DEBT TO CORE EBITDA ( 1 )		13
$ IN THOUSANDS
					Three months ended
	3/31/2020	12/31/2019	9/30/2019			6/30/2019	3/31/2019
Net income attributable to common stockholders and OP unit holders	$8,160	$7,215	$9,869			$5,992	$6,514
Excluding:
Depreciation and amortization(2)	14,092	15,285	15,057			13,145	10,129
Amortization of right-of-use assets - finance leases	147	147	145			85	-
(Gain) Loss on operating real estate dispositions	-	-	(3,220) (3)		-	-
Income tax provision (benefit)	(257)	(152)	(199)			(30)	(110)
Interest expense(2)	7,805	8,359	8,624			7,348	6,042
Interest expense - finance leases	229	228	228			112	-
Change in fair value of interest rate derivatives	1,736	(327)	530			1,933	1,463
Cash ground rent payment - finance leases	(216)	(216)	(207)			(112)	-
Loss on extinguishment of debt	-	30	-			-	-
Provision for unrealized credit losses	377	-	-			-	-
Non-cash stock compensation	1,030		274		323			327		689
Adjusted EBITDA	$33,103	$30,843	$31,150			$28,800	$24,727
Other adjustments:
Development/Redevelopment(2)(5)	(1,133)	(1,010)	(1,499)			(2,183)	(2,452)
(Less) Net Acquisitions/Dispositions completed intra-quarter	-		-		(226)			(1,978)		-
Core EBITDA	$31,970		$29,833		$29,425			$24,639		$22,275
Total debt(4)
$1,016,293	$960,819	$951,891			$956,068	$744,123
Adjustments to debt:
(Less) Development/Redevelopment(2)(5)	(127,650)	(109,930)	(122,597)			(161,528)	(182,780)
(Less) Net Acquisitions/Dispositions completed intra-quarter	-	-	-			(170,476)	-
(Less) Cash & restricted cash	(52,788)		(43,579)		(47,606)			(25,961)		(18,959)
Core Debt	$835,855		$807,310		$781,688			$598,103		$542,384
Core Debt/Annualized Core EBITDA	6.5x		6.8x		6.6x	6.1x		6.1x

1. See definitions on page 28.
2. Adjusted for the depreciation and interest expense attributable to noncontrolling interests in consolidated investments and unconsolidated entities.
3. The adjustment for gain on operating real estate dispositions excludes the portion of the gain on Lightfoot Marketplace in 3Q19 that was allocated to our joint venture partner.
4. Excludes GAAP Adjustments.
5. Includes the redevelopment of the Cosmopolitan apartments

CAPITALIZATION & FINANCIAL RATIOS 14

$ IN THOUSANDS AS OF MARCH 31, 2020

Debt	% of Total	Principal Balance
Unsecured credit facility	15%	$150,000
Unsecured term loans	20%	205,000
Mortgages payable	65%	661,293
Total debt		$1,016,293

					Liquidation Value
Preferred Equity			Shares	Per Share	Total Liquidation Value
6.75% Series A Cumulative Redeemable	2,530		$25.00	$63,250
Perpetual Preferred Stock (NYSE: AHHPrA)			Preferred Equity	Unsecured Credit Facility
									Unsecured Term Loans
Common Equity	% of Total		Shares/Units	Stock Price	Market Value
Common stock (NYSE: AHH)	73%	56,492		$10.70	$604,464		Common Units	Mortgages Payable
Common units	27%		21,273		$10.70	227,621
Equity market capitalization		77,765			$832,085
Total capitalization						$1,911,628
		Financial Ratios
Debt Service Coverage Ratio(1)						3.0x
Fixed Charge Coverage Ratio(2)						2.8x
Net Debt to Adjusted EBITDA						7.7x
Core Debt to Core EBITDA						6.5x
Core Debt + Preferred Equity to Core EBITDA					7.0x
Debt/Market capitalization						53%
			Liquidity				Unencumbered Properties
Cash on hand						$52,788		% of Total Properties	59%
Availability under credit facility					-		% of Annualized Base Rent	40%
Availability under construction loans					40,381
						$93,169

1. Reflects quarterly Adjusted EBITDA divided by total quarterly interest expense and required principal repayment
2. Reflects quarterly Adjusted EBITDA divided by total quarterly interest expense, required principal repayment, and preferred equity dividends

PROPERT Y PORTFOLIO										15
AS OF MARCH 31, 2020
						Net Rentable Square Feet (RSF)(1)
								Development/				Development/
			Town	Unencumbered				Redevelopment			Core	Redevelopment			ABR per
Property	Anchor Tenant(s)	Location	Center	ABR	Year Built	Core Properties		Properties	Total		Occupancy(2)	Leased(2)	ABR(3)		Leased SF(3)
Retail Properties
249 Central Park Retail	Cheesecake Factory, Brooks Brothers	Virginia Beach, VA	✓	-	2004	92,400	-			92,400	97.9%	-	$2,561,001	$28.32
Alexander Pointe (6)	Harris Teeter	Salisbury, NC		100%	1997	64,724	-			64,724	95.7%	-	649,308	10.49
Apex Entertainment	Apex Entertainment, USI	Virginia Beach, VA	✓	100%	2002	-	103,335			103,335	-	100.0%	1,471,503	14.24
Bermuda Crossroads(6)	Food Lion, OfficeMax	Chester, VA		100%	2001	122,566	-			122,566	98.4%	-	1,755,580	14.56
Broad Creek Shopping Center(6)(9)	Food Lion, PetSmart	Norfolk, VA		100%	1997/2001	121,504	-			121,504	95.5%	-	2,072,367	17.86
Broadmoor Plaza	Kroger	South Bend, IN		100%	1980	115,059	-			115,059	97.5%	-	1,383,006	12.32
Brooks Crossing Retail	Various Small Shops	Newport News, VA		100%	2016	18,349	-			18,349	66.3%	-	169,740	13.95
Columbus Village(6)	Barnes & Noble, Shake Shack	Virginia Beach, VA	✓	100%	1980/2013	-	62,362			62,362	-	90.8%	1,715,356	30.29
Columbus Village II	Regal Cinemas, BB&B	Virginia Beach, VA	✓	100%	1995/1996	92,061	-			92,061	96.7%	-	1,595,334	17.92
Commerce Street Retail(5)	Yard House	Virginia Beach, VA	✓	100%	2008	19,173	-			19,173	100.0%	-	886,965	46.26
Courthouse 7-Eleven	7-Eleven	Virginia Beach, VA		100%	2011	3,177	-			3,177	100.0%	-	139,311	43.85
Dimmock Square	Best Buy, Old Navy	Colonial Heights, VA		100%	1998	106,166	-			106,166	79.0%	-	1,513,551	18.04
Fountain Plaza Retail	Ruth's Chris, Ann Taylor	Virginia Beach, VA	✓	-	2004	35,961	-			35,961	100.0%	-	1,051,239	29.23
Gainsborough Square	Food Lion	Chesapeake, VA		100%	1999	88,862	-			88,862	95.6%	-	1,329,455	15.65
Greentree Shopping Center	Various Small Shops	Chesapeake, VA		100%	2014	15,719	-			15,719	92.6%	-	309,465	21.26
Hanbury Village(6)	Harris Teeter, Walgreens	Chesapeake, VA		32%	2006/2009	116,635	-			116,635	100.0%	-	2,547,561	21.84
Harper Hill Commons(6)	Harris Teeter	Winston-Salem, NC		100%	2004	96,914	-			96,914	85.0%	-	947,389	11.50
Harrisonburg Regal	Regal Cinemas	Harrisonburg, VA		100%	1999	49,000	-			49,000	100.0%	-	717,850	14.65
Indian Lakes Crossing(6)	Harris Teeter	Virginia Beach, VA		100%	2008	64,973	-			64,973	97.5%	-	877,324	13.85
Lexington Square	Lowes Foods	Lexington, SC		-	2017	85,540	-			85,540	98.2%	-	1,829,558	21.78
Market at Mill Creek (6)	Lowes Foods	Mt. Pleasant, SC		-	2018	80,405	-			80,405	95.8%	-	1,755,874	22.79
Marketplace at Hilltop(6)(9)	Total Wine, Panera	Virginia Beach, VA		-	2000/2001	116,953	-			116,953	100.0%	-	2,605,772	22.28
North Hampton Market	PetSmart, Hobby Lobby	Taylors, SC		100%	2004	114,935	-			114,935	95.8%	-	1,394,118	12.66
North Point Center(6)	Harris Teeter, Home Depot, Costco	Durham, NC		88%	1998/2009	494,746	-			494,746	100.0%	-	3,827,845	7.74
Oakland Marketplace(6)	Kroger	Oakland, TN		100%	2004	64,538	-			64,538	100.0%	-	481,332	7.46
Parkway Centre	Publix	Moultrie, GA		100%	2017	61,200	-			61,200	98.0%	-	814,128	13.57
Parkway Marketplace	Rite Aid	Virginia Beach, VA		100%	1998	37,804	-			37,804	94.4%	-	727,263	20.37
Patterson Place	BB&B, PetSmart, DSW	Durham, NC		100%	2004	160,942	-			160,942	94.3%	-	2,476,367	16.31
Perry Hall Marketplace	Safeway	Perry Hall, MD		100%	2001	74,256	-			74,256	100.0%	-	1,270,853	17.11
Premier Retail	Williams Sonoma, Pottery Barn	Virginia Beach, VA	✓	-	2018	-	39,162			39,162	-	75.6%	969,014	32.73
Providence Plaza	Cranfill, Sumner & Hartzog, Chipotle	Charlotte, NC		100%	2007/2008	103,118	-			103,118	97.5%	-	2,764,968	27.50
Red Mill Commons(6)	Homegoods, Walgreens	Virginia Beach, VA		8%	2000-2005	373,808	-			373,808	94.4%	-	6,177,238	17.51
Renaissance Square	Harris Teeter	Davidson, NC		100%	2008	80,467	-			80,467	90.4%	-	1,269,993	17.47
Sandbridge Commons(6)	Harris Teeter	Virginia Beach, VA		-	2015	76,650	-			76,650	98.5%	-	1,056,840	14.00
Socastee Commons	Bi-Lo	Myrtle Beach, SC		-	2000/2014	57,273	-			57,273	100.0%	-	651,797	11.38
Southgate Square	Burlington, PetSmart, Michaels, Conn's	Colonial Heights, VA		-	1991/2016	260,131	-			260,131	93.6%	-	3,346,192	13.74
South Retail	lululemon, free people, CPK	Virginia Beach, VA	✓	-	2002	38,515	-			38,515	100.0%	-	997,134	25.89
South Square	Ross, Petco, Office Depot	Durham, NC		100%	1977/2005	109,590	-			109,590	98.1%	-	1,794,697	16.70
Southshore Shops	Buffalo Wild Wings	Chesterfield, VA		100%	2006	40,307	-			40,307	78.8%	-	669,194	21.07
Stone House Square(6)	Weis Markets	Hagerstown, MD		100%	2008	112,274	-			112,274	93.1%	-	1,791,272	17.14
Studio 56 Retail	McCormick & Schmick's	Virginia Beach, VA	✓	100%	2007	11,594	-			11,594	100.0%	-	473,695	40.86
Tyre Neck Harris Teeter(6)(9)	Harris Teeter	Portsmouth, VA		100%	2011	48,859	-			48,859	100.0%	-	533,285	10.91
Wendover Village	BB&B, T.J. Maxx, Petco	Greensboro, NC		100%	2004	176,939		-			176,939		100.0%	-	3,564,025		20.14
Total / Weighted Avg Retail Portfolio				63%		4,004,087		204,859			4,208,946	96.1%		$66,935,759		$16.58

PROPERT Y PORTFOLIO CONT.					16
AS OF MARCH 31, 2020
						Net Rentable Square Feet (RSF)(1)
			Town	Unencumbered		Core		Development				Core		Development
Office Properties	Anchor Tenant	Location	Center	ABR	Year Built	Properties		Properties		Total		Occupancy(2)		Leased(2)	ABR(3)		ABR per Leased SF(3)
4525 Main Street	Clark Nexsen, Anthropologie, Mythics	Virginia Beach, VA	✓	-	2014	234,938	-	234,938	98.1%	-		$6,760,796	$29.33
Armada Hoffler Tower(4)(5)	AHH, Troutman Sanders, Williams Mullen	Virginia Beach, VA	✓	100%	2002	320,680	-	320,680	94.9%	-		8,822,528	28.98
Brooks Crossing Office	Huntington Ingalls Industries	Newport News, VA		-	2019	98,061	-	98,061	100.0%	-		1,814,129	18.50
One Columbus(5)	BB&T, HBA	Virginia Beach, VA	✓	100%	1984	128,876	-	128,876	97.5%	-		3,153,421	25.10
One City Center	Duke University, WeWork	Durham, NC		-	2019	152,815	-	152,815	87.8%	-		4,397,609	32.79
Thames Street Wharf(4)	Morgan Stanley, JHU Medical	Baltimore, MD		-	2010	263,426	-	263,426	99.4%	-		7,206,502	27.53
Two Columbus	HBA Architects	Virginia Beach, VA	✓	100%	2009	108,459	-	108,459	100.0%	-		2,781,346	25.64
Total / Weighted Average Office Portfolio			42%		1,307,255	-	1,307,255	96.6%				$34,936,331	$27.66
								Units/Beds
								Development/						Development/
			Town	Unencumbered		Core		Redevelopment		Total		Core		Redevelopment			Monthly Rent per
Multifamily		Location	Center	ABR	Year Built	Properties		Properties		Units/Beds		Occupancy (2)		Occupancy(2)	ABR (7)		Occupied Unit/Beds
1405 Point(8)(9)		Baltimore, MD		-	2018	289	-	289	91.0%	-		$6,773,664	$2,146.28
Encore Apartments		Virginia Beach, VA	✓	-	2014	286	-	286	87.4%	-		3,976,332	1,325.44
Greenside Apartments		Charlotte, NC		-	2018	225	-	225	94.2%	-		4,040,370	1,588.20
Hoffler Place(10)		Charleston, SC		-	2019	258	-	258	86.0%	-		3,507,356	1,316.58
Johns Hopkins Village(8)(9)(10)		Baltimore, MD		-	2016	568	-	568	97.7%	-		7,624,416	1,144.81
Liberty Apartments(8)		Newport News, VA		-	2013	197	-	197	93.9%	-		2,495,257	1,123.73
Premier Apartments		Virginia Beach, VA	✓	-	2018	131	-	131	96.2%	-		2,207,352	1,459.89
Smith's Landing(9)		Blacksburg, VA		-	2009	284	-	284	100.0%	-		4,284,972	1,257.33
The Cosmopolitan(8)		Virginia Beach, VA	✓	-	2006	-		342		342		-		84.8% (11)	4,879,512	1,701.36
Total / Weighted Avg Multifamily Portfolio			-		2,238		342		2,580		93.7%				$39,789,230		$1,419.40

1. The net rentable square footage for each of our retail & office properties is the sum of (a) the square footage of existing leases, plus (b) for available space, management's estimate of net rentable square footage based, in part, on past leases. The net rentable square footage included in office leases is generally consistent with the Building Owners and Managers Association, or BOMA, 1996 measurement guidelines.
2. Occupancy for each of our retail & office properties is calculated as (a) square footage under executed leases as of March 31, 2020, divided by (b) net rentable square feet, expressed as a percentage. Occupancy for our multifamily properties is calculated as (a) total units occupied as of March 31, 2020, divided by (b) total units available, as of such date expressed as a percentage.
3. For the properties in our office and retail portfolios, annualized base rent, or ABR, is calculated by multiplying (a) monthly base rent (defined as cash base rent, before contractual tenant concessions and abatements, and excluding tenant reimbursements for expenses paid by us) as of March 31, 2020 forin-place leases as of such date by (b) 12, and does not give effect to periodic contractual rent increases or contingent rental revenue (e.g., percentage rent based on tenant sales thresholds). ABR per leased square foot is calculated by dividing (a) ABR by (b) square footage under in- place leases as of March 31, 2020. In the case of triple net or modified gross leases, our calculation of ABR does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses.
4. The Company occupied 55,390 square feet at these two properties at an ABR of $1.7M, or $31.30 per leased square foot, which amounts are reflected in this table. The rent paid by us is eliminated in accordance with GAAP in the consolidated financial statements.
5. Includes ABR pursuant to a rooftop lease.
6. Net rentable square feet at certain of our retail properties includes pad sites leased pursuant to the ground leases in the table to the right.
7. For the properties in our multifamily portfolio, ABR is calculated by multiplying (a) base rental payments for the month ended March 31, 2020 by (b) 12.

			Square Footage
Properties with Tenants Subject to	Number of		Leased Pursuant to
Ground Lease	Ground Leases		Ground Leases		ABR
Alexander Pointe	1	7,014	$10,000
Bermuda Crossroads	2	11,000	179,685
Broad Creek Shopping Center	6	23,825	649,818
Columbus Village	1	3,403	200,000
Hanbury Village	2	55,586	1,082,118
Harper Hill Commons	1	41,520	373,680
Indian Lakes Crossing	1	50,311	592,385
Market at Mill Creek	1	7,014	63,000
Marketplace at Hilltop	1	4,211	99,843
North Point Center	4	280,556	1,146,700
Oakland Marketplace	1	45,000	186,347
Red Mill Commons	8	33,961	773,639
Sandbridge Commons	3	60,521	738,500
Stone House Square	1	3,650	181,500
Tyre Neck Harris Teeter	1		48,859		533,285
Total / Weighted Avg	34		676,431		$6,810,500

1. The ABR for Liberty, Cosmopolitan, Johns Hopkins Village, Hoffler Place and 1405 Point excludes approximately $0.3M, $0.9M, $1.1M, $0.1M and $0.4M, respectively, from ground floor retail leases.
2. The Company leases all or a portion of the land underlying this property pursuant to a ground lease.
3. Monthly rent per occupied unit is calculated by dividing total base rental payments for the month ended March 31, 2020 by the number of occupied beds.
4. Occupancy calculation excludes 60 units that are offline for redevelopment.

D E V E LO P M E N T & R E D E V E LO P M E N T P I P E L I N E

17

$ IN THOUSANDS

Schedule(1)

Property

Estimated

(1)

% Leased or

Construction

Initial

Stabilized

Estimated

Loan

Cost to

AHH Ownership %

Anchor Tenants

Projects

Type

LOI

Start

Occupancy

Operation(2)

Cost(1)

Commitment

Date

Under Development

Summit Place (Meeting Street)

Multifamily

357 beds

47%

3Q17

3Q20

4Q20

$56,000

$35,000

$53,000

90%

NA

Charleston, SC

Wills Wharf

Office

325,000 sf

68%

3Q18

2Q20

2Q21

120,000

76,000

98,000

100%

Canopy by Hilton, EY, WeWork

Baltimore, MD

On Hold

Chronicle Mill

239 units /

(3)

Belmont, NC

Multifamily

10,000 sf

-

TBD

TBD

TBD

TBD

TBD

4,000

85%

NA

Southern Post

138 units /

(3)

Roswell, GA

Mixed-use

137,000 sf

-

TBD

TBD

TBD

TBD

TBD

9,000

80%

TBD

Ten Tryon

Mixed-use

220,000 sf

38%

TBD

TBD

TBD

TBD

TBD

8,000

(3)

Publix, Fortune 100 office tenant

Charlotte, NC

80%

Total Projects Under Development or On Hold

$176,000

$111,000

$172,000

Delivered Not Stabilized

Premier Retail (Town Center Phase VI)

Retail

39,000 sf

76%

4Q16

3Q18

3Q21

18,000

8,000

16,000

100%

Williams-Sonoma, Pottery Barn

Virginia Beach, VA

Total

$194,000

$119,000

$188,000

Property

% Leased or

Out of

Construction

Anticipated

Restabilized

Estimated

Cost to Date

Projected

Scope

Redevelopment

Type

LOI

Service

Start

Completion

Operation(2)

Cost(1)

ROI

Renovate all 342 units including upgraded finishes, new

The Cosmopolitan

Multifamily

83%(4)

60 units

1Q18

TBD

TBD

$14,000

$9,000

9%

cabinetry and flooring, energy efficient appliances, and LED

Virginia Beach, VA

lighting; modernize resident clubhouse, business center, and

leasing office.

Reposition 62,000 SF center to better incorporate within Town

Columbus Village I

Mixed-use

95%

9,609 sf

2Q19

3Q20

4Q20

9,000

7,000

8%

Center and add Virginia Beach Boulevard small shop frontage

Virginia Beach, VA

along with Shake Shack, Cava, Hand & Stone, European Wax

Center , and new Barnes & Noble prototype.

Apex Entertainment Building

Revitalize 84,000 SF of big box retail space within Town Center

(Former Dick's Sporting Goods)

Mixed-use

100%

84,000 sf

1Q20

4Q20

1Q21

8,000

1,000

7%

into a destination entertainment concept for a new to market

Virginia Beach, VA

tenant, Apex Entertainment.

Total Projects Under Redevelopment

$31,000

$17,000

8%

Q1 2020

Capitalized Interest

$1,548

Capitalized Overhead

$964

1. Represents estimates that may change as the development and redevelopment process proceeds.
2. Firstfully-stabilized quarter. See same store definition on page 29.
3. Majority interest in joint venture with preferred return.
4. Occupancy calculation excludes 60 units that are offline for redevelopment.

MEZZANINE INVESTMENTS			18
$ IN THOUSANDS
				Schedule(1)
							Principal
	Property		% Leased	Initial			Mezzanine	Mezzanine
	Type	Estimated(1)	or LOI	Occupancy	Loan Maturity	Interest Rate	Financing	Interest QTD
Investments with Discounted Purchase Options
Nexton Square-Phase I	Mixed-use	118,000 sf	99%	3Q19	4Q20	10%	$14,000	$392
Summerville, SC
Short Term Investments
Delray Plaza (Whole Foods)(2)	Retail	83,000 sf	100%	3Q19	4Q20	15%	12,000	489
Delray Beach, FL
The Residences at Annapolis Junction(2)	Multifamily	416 units	80%	3Q17	2Q20	10%	36,000	1,009
Annapolis Junction, MD
Solis Apartments at Interlock	Multifamily	349 units	NA	4Q20	3Q22	13%	23,000	838
Atlanta, GA
The Interlock	Mixed-use	300,000 sf	74%	4Q20	3Q22	15%	67,000	2,403
Atlanta, GA
						Total	$152,000	$5,131
						Mezzanine Interest Expense	(1,122)
						Net Mezzanine Interest Income	$4,009

The Interlock	Solis Apartments
Atlanta, GA	Atlanta, GA

1. Represents estimates that may change as the development process proceeds
2. Stopped GAAP recognition of mezzanine income as of 4/1/20

ACQUISITIONS & DISPOSITIONS	19
$ IN THOUSANDS
ACQUISITIONS
						Reinvested 1031			$ Value of	Cash Cap
Properties	Location	Square Feet		Purchase Price(1)			Proceeds		OP Units/Stock(2)	Rate	Purchase Date	Anchor Tenants
Thames Street Wharf	Baltimore, MD	263,426	$101,000	$	-	$	-		7.1%	2Q19	Morgan Stanley, JHU Medical
Red Mill Commons & Marketplace	Virginia Beach, VA	488,865	105,000			-			63,755		7.7%	2Q19	T.J. Maxx, Homegoods, Total Wine,
at Hilltop						Walgreens
Wendover Village III	Greensboro, NC	5,286	2,783			2,424			-		9.2%	1Q19	Verizon
Lexington Square	Lexington, SC	85,531	26,758			-			2,769		6.7%	3Q18	Lowes Foods
Parkway Centre	Moultrie, GA	61,200	11,200			-			1,624		6.4%	1Q18	Publix
Indian Lakes	Virginia Beach, VA	71,020	14,700			-			-		7.1%	1Q18	Harris Teeter, Wawa
Wendover Village Outparcel	Greensboro, NC	35,895	14,300			7,900			-		7.7%	3Q17	Panera, Rooms to Go Kids
Renaissance Square	Davidson, NC	80,468	17,085			-			-		7.1%	4Q16	Harris Teeter
Columbus Village II	Virginia Beach, VA	92,061	26,200			-			26,200		5.6%	4Q16	Regal, Bed Bath & Beyond
Southshore Shops	Midlothian, VA	40,333	9,160			-			2,475		7.8%	3Q16	Buffalo Wild Wings
Southgate Square	Colonial Heights, VA	220,131	38,585			-			17,485		7.3%	2Q16	PetSmart, Michael's, Burlington
Retail Portfolio (11 properties)	Mid-Atlantic	1,082,681	170,500			87,000			-		7.2%	1Q16	Harris Teeter, Bed Bath & Beyond
Providence Plaza	Charlotte, NC	103,118	26,200			14,000			-		7.3%	3Q15	Chipotle
Socastee Commons	Myrtle Beach, SC	57,573	8,600			3,600			-		7.3%	3Q15	BiLo
Columbus Village	Virginia Beach, VA	65,746	21,025			-			14,025		6.4%	3Q15	Barnes & Noble
Perry Hall Marketplace & Stone	Maryland	182,949	39,555			15,200			4,155		7.4%	2Q15	Safeway & Weis Markets
House Square
Dimmock Square	Colonial Heights, VA	106,166		19,662			-			9,662		7.3%	3Q14	Old Navy, Best Buy
Total/Weighted Average		3,042,449	$652,313			$130,124			$142,150		7.2%
DISPOSITIONS
		Square										Cash Cap
Properties	Location	Feet/Units		Sale Price		Cash Proceeds			Gain on Sale	Rate	Disposition Date	Anchor Tenants
Lightfoot Marketplace	Williamsburg, VA	124,715	$30,275			$11,800			$4,477 (4)	5.8%	3Q19	Harris Teeter
Indian Lakes Wawa	Virginia Beach, VA	6,047	4,400			4,400			-		5.4%	2Q18	Wawa
Commonwealth of VA Buildings	Virginia Beach & Chesapeake, VA	47,366	13,150			8,000			4,194		6.8%	3Q17	Commonwealth of VA
Greentree Wawa	Chesapeake, VA	5,088	4,600			4,400			3,396		5.0%	1Q17	Wawa
Oyster Point(3)	Newport News, VA	100,139	6,500			-			3,793		16.4%	3Q16	GSA
Non-Core Retail Portfolio	Various	174,758	12,850			12,600			(27)		7.1%	2Q16 - 3Q16	Kroger, Family Dollar
Richmond Tower	Richmond, VA	206,969	78,000			77,000			26,674		7.9%	1Q16	Williams Mullen
Oceaneering	Chesapeake, VA	154,000	30,000			10,000			4,987		6.7%	4Q15	Oceaneering International
Whetstone Apartments	Durham, NC	203 units	35,625			17,600			7,210		5.7%	2Q15	NA
Sentara Williamsburg	Williamsburg, VA	49,200	15,450			15,200			6,197		6.3%	1Q15	Sentara
Virginia Natural Gas	Virginia Beach, VA	31,000		8,900			7,400			2,211		6.3%	4Q14	Virginia Natural Gas
Total/Weighted Average		899,282 sf/	$239,750			$168,400			$63,112		7.0%
		203 units

1. Contractual purchase price.
2. Value of OP Units/Stock at issuance.
3. Anchor tenant vacated 12/31/16, which would represent a 2.5% Cash Cap Rate.
4. Includes JV interest in the property.

CONSTRUCTION BUSINESS SUMMARY 20

$ IN THOUSANDS

						Total Contract		Work in Place as			Estimated Date
Highlighted Projects			Location	Value		of 3/31/2020		Backlog	of Completion
The Interlock			Atlanta, GA	$93,671	$60,692	$32,979	3Q 2020
Solis Apartments at Interlock			Atlanta, GA	64,097	23,840	40,257	1Q 2021
Boulders Lakeside Apartments			Chesterfield, VA	35,707	15,852	19,855	1Q 2021
27th Street Garage and Apartments			Virginia Beach, VA	79,550	14,298	65,252	3Q 2021
Holly Springs Apartments			Holly Springs, NC	34,729		193		34,536	4Q 2021
Sub Total					307,754	114,875	192,879
All Other Projects					293,730		250,967		42,763
Total					$601,484	$365,842	$235,642
	Gross Profit Summary
	Q1 2020		Trailing 12
		Months
		(Unaudited)
Revenue	$47,268	$136,091
Expense		(45,550)		(130,802)
Gross Profit	$1,718	$5,289

The Interlock

Atlanta, GA

SAME STORE NOI BY SEGMENT	21
$ IN THOUSANDS (RECONCILIATION TO GAAP LOCATED IN APPENDIX ON PG. 33)
			Three months ended
	3/31/2020	3/31/2019			$ Change		% Change
Office(1)			(Unaudited)
Revenue	$5,303	$5,326			($23)	-0.4%
Rental Expenses(2)	1,402	1,346			56	4.2%
Real Estate Taxes	554		513			41		8.0%
Net Operating Income	$3,347	$3,467			($120)	-3.5%
Retail(1)
Revenue	$15,909	$15,587			$322	2.1%
Rental Expenses(2)	2,088	2,129			(41)	-1.9%
Real Estate Taxes	1,765		1,667			98		5.9%
Net Operating Income	$12,056	$11,791			$265	2.2%
Multifamily(1)
Revenue	$5,620	$5,449			$171	3.1%
Rental Expenses(2)	1,671	1,690			(19)	-1.1%
Real Estate Taxes	422		396			26		6.6%
Net Operating Income	$3,527	$3,363			$164	4.9%
Same Store Net Operating Income (NOI)	$18,930		$18,621			$309		1.7%
GAAP Adjustments	(235)	(570)			335
Same store portfolio NOI, cash basis	$18,695	$18,051			$644	3.6%
NOI, Cash Basis:
Office	$3,306	$3,136			$170	5.4%
Retail	11,905	11,653			252	2.2%
Multifamily	3,484		3,262			222		6.8%
	$18,695	$18,051			$644	3.6%
NOI:
Office	$3,347	$3,467			($120)	-3.5%
Retail	12,056	11,791			265	2.2%
Multifamily	3,527		3,363			164		4.9%
	$18,930	$18,621			$309	1.7%

1. See page 30 for Same Store vs. Non - Same Store Properties.
2. Excludes expenses associated with the Company's in house asset management division of $419K and $402K for the 3 months ended 3/31/2020 & 3/31/2019, respectively.

TOP 10 TENANTS BY ABR ( 1 )	22
$ IN THOUSANDS AS OF MARCH 31, 2020
Office Portfolio
			Number		Lease				Annualized Base				% of Office Portfolio			% of Total Portfolio
Tenant		of Leases		Expiration				Rent				Annualized Base Rent			Annualized Base Rent
Morgan Stanley	2	2023 ; 2027				$ 5,879		16.8%		4.2%
Clark Nexsen	1	2029	2,639					7.6%				1.9%
WeWork	1	2034	2,259					6.5%				1.6%
Duke University	1	2029	1,579					4.5%				1.1%
Huntington Ingalls	1	2029	1,513					4.3%				1.1%
Mythics	1	2030	1,211					3.5%				0.9%
Johns Hopkins Medicine	1	2023	1,118					3.2%				0.8%
Pender & Coward	1	2030	926					2.7%				0.7%
Kimley-Horn	1	2027	894					2.6%				0.6%
Troutman Sanders	1	2025	889					2.5%				0.6%
Top 10 Total						$ 18,907		54.2%		13.5%
Retail Portfolio
			Number		Lease				Annualized Base				% of Retail Portfolio			% of Total Portfolio
Tenant		of Leases		Expiration				Rent				Annualized Base Rent			Annualized Base Rent
Harris Teeter/Kroger	10	2020	- 2035			$ 5,645		8.4%		4.0%
Lowes Foods	2	2037	; 2039			1,976		3.0%		1.4%
Bed, Bath, & Beyond		4		2022	; 2025	1,751			2.6%			1.2%
Regal Cinemas	2	2022	- 2024			1,713		2.6%		1.2%
PetSmart	5	2022	- 2025			1,461		2.2%		1.0%
Food Lion	3	2022	- 2024			1,315		2.0%		0.9%
Petco	4	2022	- 2030			892		1.3%		0.6%
Weis Markets		1	2028			802		1.2%		0.6%
Total Wine & More	2	2024	; 2027			765		1.1%		0.5%
Ross Dress for Less	2	2022	; 2025			762		1.1%		0.5%
Top 10 Total								$ 17,082			25.5%			11.9%

(1) Includes leases from the development and redevelopment properties that have been delivered, but not stabilized.

LEASE SUMMARY													23
O F F I C E
Renewal Lease Summary								GAAP							Cash
	Number of																		Weighted
	Leases	Net Rentable SF	Leases	Net Rentable		Contractual	Prior Rent	Releasing		Contractual	Prior Rent	Releasing	Average Lease		TI & LC
Quarter	Signed	Signed		Expiring	SF Expiring		Rent per SF	per SF	Spread		Rent per SF	per SF	Spread	Term (yrs)	TI & LC	per SF
Q1 2020	1		17,194	4	7,373	$	32.77	$30.32		8.1%		$	29.75	31.40	-5.3%	8.00	$ 1,004,346	$58.41
Q4 2019	2			8,147	1	3,929			25.43	24.23		4.9%				24.74	25.69	-3.7%	4.06	64,668	7.94
Q3 2019	1			1,120	4	26,201			38.50	37.00		4.1%				38.50	37.00	4.1%	2.00	1,725	1.54
Q2 2019	1		30,009	1	5,253			20.37	21.71		-6.1%				19.00	23.77	-20.1%	5.00	114,589	3.82
New Lease Summary(1)
	Number of			Cash	Weighted
	Leases	Net Rentable SF	Contractual	Average				TI & LC
Quarter	Signed	Signed		Rent per SF	Lease Term			TI & LC	per SF
Q1 2020	1			3,186	$26.50	5.00			$112,578	$35.34
Q4 2019	1			2,363	23.75	6.00			138,300	58.53
Q3 2019	7		21,345	24.73	5.30			716,641	33.57
Q2 2019	4		22,712	27.11	8.60			1,122,865	49.44
R E T A I L
Renewal Lease Summary								GAAP							Cash
	Number of	Net																	Weighted
	Leases	Rentable SF			Net Rentable SF	Contractual	Prior Rent per	Releasing		Contractual	Prior Rent	Releasing	Average Lease		TI & LC
Quarter	Signed	Signed	Leases Expiring	Expiring	Rent per SF	SF	Spread		Rent per SF	per SF	Spread	Term (yrs)	TI & LC	per SF
Q1 2020	3	35,767		16	158,218			$13.11	$12.98		1.0%			$	13.15	13.00	1.1%	4.81	$74,321	$2.08
Q4 2019	23	110,368		14	34,291			17.94	16.79		6.9%					17.87	17.15	4.2%	5.25	202,576	1.84
Q3 2019	28	201,931		8	14,338			16.44	15.47		6.3%					16.32	15.72	3.9%	5.14	568,379	2.81
Q2 2019	19	193,546		12	36,364			13.37	12.64		5.7%					13.37	12.84	4.1%	4.87	137,547	0.71
New Lease Summary(1)
	Number of	Net		Cash	Weighted
	Leases	Rentable SF		Contractual	Average Lease				TI & LC
Quarter	Signed	Signed		Rent per SF	Term (yrs)		TI & LC	per SF
Q1 2020	7	13,073		$18.33	5.24	$184,426	$14.11
Q4 2019	12	72,921		17.50	10.02	3,207,564	43.99
Q3 2019	5	14,720		20.60	9.60			733,422	49.82

Q2 2019

7

31,696

27.36

9.41

1,857,154

58.59

OFFICE LEASE EXPIRATIONS					24
AS OF MARCH 31, 2020
					% Portfolio Net					% of Portfolio		Annualized Base
	Number of Leases		Square Footage of		Rentable Square		Annualized Base		Annualized Base		Rent per Leased
Year	Expiring		Leases Expiring		Feet			Rent		Rent			Square Foot
Available	-	44,302	3.4%	$	-	-	$	-
M-T-M	2	0	-			2,400	-			-
2020	8	21,641	1.7%			669,935	1.9%			30.96
2021	12	48,532	3.7%			1,337,860	3.8%			27.57
2022	10	54,082	4.1%			1,487,997	4.3%			27.51
2023	12	103,647	7.9%			2,723,325	7.8%			26.28
2024	10	134,075	10.3%			3,248,397	9.3%			24.23
2025	16	137,605	10.5%			4,044,721	11.6%			29.39
2026	8	36,863	2.8%			926,963	2.7%			25.15
2027	4	244,864	18.7%			7,036,462	20.1%			28.74
2028	7	69,036	5.3%			1,979,242	5.7%			28.67
2029	7	242,709	18.6%			6,176,768	17.7%			25.45
2030	6	107,801	8.2%			3,043,135	8.7%			28.23
Thereafter	1	62,098	4.8%			2,259,126	6.4%			36.38
Total / Weighted Average	103		1,307,255		100.0%		$	34,936,331		100.0%		$	27.66

300,000	25.0%	Square Feet	% of Portfolio
Under Lease	ABR
250,000	20.0%	2,500 or less	3%
200,000	15.0%	2,501-10,000	14%
	10,001-20,000	16%
150,000
100,000	10.0%	20,001-40,000	21%
	40,001-100,000	30%
	5.0%
50,000	Greater than 100,000	16%
-	0.0%	Office Portfolio Total	100%

Leased Square Feet

% ABR of Office Portfolio

RETAIL LEASE EXPIRATIONS					25
AS OF MARCH 31, 2020
					% Portfolio Net					% of Portfolio		Annualized Base
	Number of Leases		Square Footage of		Rentable Square		Annualized Base		Annualized Base		Rent per Leased
Year	Expiring		Leases Expiring(1)		Feet			Rent(1)		Rent			Square Foot
Available	-	172,605	4.1%	$	-	-	$	-
M-T-M	5	10,500	0.2%			251,932	0.4%			23.99
2020	45	185,983	4.4%			2,766,441	4.1%			14.87
2021	91	351,636	8.4%			6,796,036	10.2%			19.33
2022	87	502,490	11.9%			8,254,616	12.3%			16.43
2023	90	518,121	12.3%			8,487,650	12.7%			16.38
2024	85	524,109	12.5%			8,623,779	12.9%			16.45
2025	69	592,430	14.1%			8,217,231	12.3%			13.87
2026	28	166,357	4.0%			3,285,448	4.9%			19.75
2027	21	134,265	3.2%			2,920,596	4.4%			21.75
2028	24	252,999	6.0%			3,523,589	5.3%			13.93
2029	23	108,253	2.6%			2,158,462	3.2%			19.94
2030	17	98,880	2.3%			1,984,845	3.0%			20.07
Thereafter	26	590,318	14.0%			9,665,130	14.4%			16.37
Total / Weighted Average	611	4,208,946	100.0%	$	66,935,755	100.0%	$	16.58

700,000	16.0%
600,000	14.0%
500,000	12.0%
400,000	10.0%
	8.0%
300,000	6.0%
200,000	4.0%
100,000	2.0%
-	0.0%

Square Feet
Under Lease	% of Portfolio ABR
2,500 or less	15%
2,501-10,000	33%
10,001-20,000	14%
20,001-40,000	15%
40,001-100,000	22%
Greater than 100,000	1%
Retail Portfolio Total	100%

		Leased Square Feet		% ABR of Retail Portfolio

(1) Includes leases from properties in development, redevelopment, and delivered, not yet stabilized.

APPENDIX

D E F I N I T I O N S & R E C O N C I L I AT I O N S

Town Center

Virginia Beach, VA

D E F I N I T I O N S

27

NET OPERATING INCOME:

We calculate Net Operating Income ("NOI") as property revenues (base rent, expense reimbursements and other revenue) less property expenses (rental expenses and real estate taxes). Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to such other REITs' NOI. NOI is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of

cash available to fund cash needs. As a result, NOI should not be considered an alternative to cash flows as a measure of liquidity. We consider NOI to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of our real estate business.

To calculate NOI on a cash basis, we adjust NOI to exclude the net effects of straight-line rent and the amortization of lease incentives and above/below market rents.

FUNDS FROM OPERATIONS:

We calculate Funds From Operations ("FFO") in accordance with the standards established by the National Association of Real Estate Investment Trusts

("Nareit"). Nareit defines FFO as net income (loss) (calculated in accordance with accounting principles generally accepted in the United States ("GAAP")), excluding depreciation and amortization related to real estate, gains or losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.

FFO is a supplemental non-GAAP financial measure. Management uses FFO as a supplemental performance measure because it believes that FFO is beneficial to investors as a starting point in measuring our operational performance. Specifically, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, which do not relate to or are not indicative of operating performance, FFO provides a performance measure that, when compared period-over-period, captures trends in occupancy rates, rental rates and operating costs. Other equity REITs may not calculate FFO in accordance with the Nareit definition as we do, and, accordingly, our FFO may not be comparable to such other REITs' FFO.

NORMALIZED FUNDS FROM OPERATIONS:

We calculate Normalized Funds From Operations ("Normalized FFO") as FFO calculated in accordance with the standards established by Nareit, adjusted for acquisition, development and other pursuit costs, gains or losses from the early extinguishment of debt, impairment of intangible assets and liabilities, mark-to-market adjustments on interest rate derivatives, provision for unrealized credit losses, amortization of right-of-use assets attributable to finance leases, severance related costs, and other non-comparable items.

Management believes that the computation of FFO in accordance to Nareit's definition includes certain items that are not indi cative of the results provided by the Company's operating portfolio and affect the comparability of the Company's period-over-period performance. Our calculation of Normalized FFO differs from Nareit's definition of FFO. Other equity REITs may not calculate Normalized FFO in the same manner as us, and, accordingly, our Normalized FFO may not be comparable to other REITs' Normalized FFO.

D E F I N I T I O N S

28

ADJUSTED FUNDS FROM OPERATIONS:

We calculate Adjusted Funds From Operations ("AFFO") as Normalized FFO adjusted for the impact of non-cash stock compensation, tenant improvement, leasing commission and leasing incentive costs associated with second generation rental space, capital expenditures, non -cash interest expense, proceeds from the sale of a purchase option (in excess of amounts recognized in net income), straight-line rents, cash ground rent payments for finance leases, the amortization of leasing incentives and above (below) market rents and proceeds from government development grants.

Management believes that AFFO provides useful supplemental information to investors regarding our operating performance as it provides a consistent comparison of our operating performance across time periods and allows investors to more easily compare our operating results with other REITs. However, other REITs may use different methodologies for calculating AFFO or similarly entitled FFO measures and, accordingly, our AFFO may not always be comparable to AFFO or other similarly entitled FFO measures of other REITs.

ADJUSTED EBITDA:

We calculate Adjusted EBITDA as net income (loss) (calculated in accordance with GAAP), excluding interest expense, income taxes, depreciation and amortization, gains (or losses) from sales of depreciable operating property, impairment of real estate assets, debt extinguishment losses, non-cash stock compensation and mark-to-market adjustments on interest rate derivates, and including cash ground rent payments for finance leases. Management believes Adjusted EBITDA is useful to investors in evaluating and facilitating comparisons of our operating performance between periods and between REITs by removing the impact of our capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from our operating results along with other non-comparable items.

CORE EBITDA:

We calculate Core EBITDA as Adjusted EBITDA, excluding certain items, including, but not limited to, the impact of development pipeline projects that are still in lease-up. We generally consider a property to be in lease-up until the earlier of (i) the quarter after which the property reaches 80% occupancy or (ii) the thirteenth quarter after the property receives its certificate of occupancy. Management believes that Core EBITDA provides useful supplemental information to investors regarding our ongoing operating performance as it provides a consistent comparison of our operating performance across time periods and allows investors to more easily compare our operating results with other REITs. However, other REITs may use different methodologies for calculating Core EBITDA or similarly entitled measures and, accordingly, our Core EBITDA may not always be comparable to Core EBITDA or other similarly entitled measures of other REITs.

CORE DEBT:

We calculate Core Debt as our total debt, excluding loans associated with our development pipeline, cash & cash equivalents, and restricted cash.

D E F I N I T I O N S

29

SAME STORE PORTFOLIO:

We define same store properties as those that we owned and operated and that were stabilized for the entirety of both periods compared. We generally consider a property to be stabilized upon the earlier of: (i) the quarter after the property reaches 80% occupancy or (ii) the thirteenth quarter after the property receives its certificate of occupancy. Additionally, any property that is fully or partially taken out of service for the purpose of redevelopment is no longer considered stabilized until the redevelopment activities are complete, the asset is placed back into service, and the stabilization criteria above are again met. A property may also be fully or partially taken out of service as a result of a disposition, depending on the significance of the portion of the property disposed. Finally, any property classified as Held for Sale is taken out of service for the purpose computing same store operating results. The following table shows the properties included in the same store and non-same store portfolio for the comparative periods presented.

S A M E S T O R E V S . N O N - S A M E S T O R E P R O P E R T I E S

30

	Three Months Ended
	3/31/2020 to 2019
	Same	Non-Same
	Store	Store
Retail Properties
249 Central Park Retail	X
Alexander Pointe	X
Bermuda Crossroads	X
Broad Creek Shopping Center	X
Broadmoor Plaza	X
Brooks Crossing (Retail)		X
Columbus Village		X
Columbus Village II	X
Commerce Street Retail	X
Courthouse 7-Eleven	X
Apex Entertainment		X
Dimmock Square	X
Fountain Plaza Retail	X
Greentree Shopping Center	X
Gainsborough Square	X
Hanbury Village	X
Harper Hill Commons	X
Harrisonburg Regal	X
Indian Lakes Crossing	X
Lexington Square	X
Market at Mill Creek		X
Marketplace at Hilltop		X
North Hampton Market	X
North Point Center	X
Oakland Marketplace	X
Parkway Centre	X
Parkway Marketplace	X
Patterson Place	X
Perry Hall Marketplace	X
Premier Retail		X
Providence Plaza	X

	Three Months Ended
	3/31/2020 to 2019
	Same	Non-Same
	Store	Store
Retail Properties (Continued)
Red Mill Commons		X
Renaissance Square	X
Sandbridge Commons	X
Socastee Commons	X
South Retail	X
South Square	X
Southgate Square	X
Southshore Shops	X
Stone House Square	X
Studio 56 Retail	X
Tyre Neck Harris Teeter	X
Wendover Village	X
Wendover Village II	X
Wendover Village III		X
Office Properties
4525 Main Street	X
Armada Hoffler Tower	X
Brooks Crossing (Office)		X
One City Center		X
One Columbus	X
Thames Street Wharf		X
Two Columbus	X
Multifamily Properties
1405 Point		X
Encore Apartments	X
Greenside Apartments		X
Hoffler Place		X
Johns Hopkins Village	X
Liberty Apartments	X
Premier Apartments		X
Smith's Landing	X
The Cosmopolitan		X

R E C O N C I L I AT I O N TO P R O P E R T Y P O R T F O L I O N O I 31

$ IN THOUSANDS

	Three months ended 3/31
	2020	2019
Office Same Store(1)
Rental revenues	$5,303	$5,326
Property expenses	1,956		1,859
NOI	3,347	3,467
Non-Same Store NOI(2)	3,153		77
Segment NOI	$6,500	$3,544
Retail Same Store(1)
Rental revenues	$15,909	$15,587
Property expenses	3,853		3,796
NOI	12,056	11,791
Non-Same Store NOI(2)	3,169		1,055
Segment NOI	$15,225	$12,846
Multifamily Same Store(1)
Rental revenues	$5,620	$5,449
Property expenses	2,093		2,086
NOI	3,527	3,363
Non-Same Store NOI(2)	3,329		1,303
Segment NOI	$6,856	$4,666
Total Property Portfolio NOI	$28,581		$21,056

1. See page 30 for the Same Store vs.Non-Same Store properties
2. Includes expenses associated with the Company's in house asset management division.

R E C O N C I L I AT I O N TO P R O P E R T Y P O R T F O L I O N O I 32

$ IN THOUSANDS

			Three months ended 3/31/2020
Diversified Portfolio	Office		Retail		Multifamily		Total
NOI - Cash Basis	$2,912	$12,635	$4,994	$20,541
GAAP Adjustments	396	660	29	1,085
Elimination of intercompany rent	(72)		-		-		(72)
NOI	$3,236	$13,295	$5,023	$21,554
Town Center of Virginia Beach
NOI - Cash Basis	$3,503	$1,944	$1,812	$7,259
GAAP Adjustments	40	(155)	21	(94)
Elimination of intercompany rent	(279)		(65)		-		(344)
NOI	$3,264	$1,724	$1,833	$6,821
NOI
Diversified Portfolio	$3,236	$13,295	$5,023	$21,554
Town Center of Virginia Beach	3,264	1,724	1,833	6,821
Unstabilized Properties	-		206		-		206
Total Property Portfolio NOI	$6,500		$15,225		$6,856		$28,581

RECONCILIATION TO GAAP NET INCOME 33

$ IN THOUSANDS

									Three months ended 3/31/2020
												Total Rental		General Contracting &
		Office		Retail			Multifamily			Properties			Real Estate Services			Total
Segment revenues	$	10,192			$	20,411	$	11,686	$	42,289	$	47,268	$	89,557
Segment expenses		3,692				5,186			4,830			13,708			45,550			59,258
Net operating income	$	6,500			$	15,225	$	6,856	$	28,581	$	1,718	$	30,299
Depreciation and amortization																		(14,279)
Amortization of right-of-use assets - finance leases																	(147)
General and administrative expenses																		(3,793)
Acquisition, development and other pursuit costs																	(27)
Impairment charges																		(158)
Interest income																		7,226
Interest expense																		(7,959)
Interest expense - finance leases																		(229)
Change in fair value of interest rate derivatives																	(1,736)
Other income (loss) benefit																		58
Provision for unrealized credit losses																		(377)
Income tax benefit																		257
Net income																$	9,135
Net loss attributable to noncontrolling interest in investment entities														92
Preferred stock dividends																		(1,067)
Net income attributable to AHH and OP unit holders												$	8,160