Armada Hoffler Properties (NYSE:AHH) reported a net loss for the fourth quarter of 2025, yet surpassed analyst expectations on a key measure of REIT profitability as the company embarks on a comprehensive turnaround.
The Virginia Beach-based real estate investment trust posted Normalized Funds From Operations (FFO) of $29.5 million, or $0.29 per share, edging out the prior year’s $0.27 per share.
FFO is a critical metric for REITs, as it adds back non-cash expenses like depreciation to provide a clearer picture of cash flow.
The company reported a GAAP net loss of $957,000, or $0.01 per share, a sharp swing from the $26.1 million profit recorded in the same period in 2024.
Management attributed the year-over-year decline primarily to the absence of large asset-sale gains that bolstered the 2024 figures, as well as unrealized losses on interest rate derivatives.
Despite the bottom-line loss, operational performance remained resilient.
Total revenue reached $75.6 million, with the company’s office segment seeing a robust 10.4% increase in same-store net operating income.
Portfolio occupancy remained high at 95.3%, supported by new retail openings, including Trader Joe's and Golf Galaxy.