Segments (Tables)

6 Months Ended

Jun. 30, 2013

Net Operating Income of Reportable Segments

Net operating income of Armada Hoffler’s reportable segments for the three and six months ended June 30, 2013 and 2012 was as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(Unaudited)
Office real estate
Rental revenues	$	6,420		$	6,566		$	12,906		$	12,959
Property expenses		(1,940	)		(1,804	)		(3,886	)		(3,650	)
Segment net operating income		4,480			4,762			9,020			9,309
Retail real estate
Rental revenues		5,383			5,187			10,388			10,287
Property expenses		(1,629	)		(1,477	)		(3,309	)		(3,006	)
Segment net operating income		3,754			3,710			7,079			7,281
Multifamily residential real estate
Rental revenues		2,428			1,856			4,335			3,750
Property expenses		(1,078	)		(839	)		(1,893	)		(1,507	)
Segment net operating income		1,350			1,017			2,442			2,243
General contracting and real estate services
Segment revenues		23,291			12,383			41,247			27,024
Segment expenses		(22,503	)		(11,501	)		(39,961	)		(25,493	)
Segment net operating income		788			882			1,286			1,531
Other		—			(33	)		—			(37	)
Net operating income	$	10,372		$	10,338		$	19,827		$	20,327

Reconciliation of Net Operating Income to Net Income

The following table reconciles net operating income to net income for the three and six months ended June 30, 2013 and 2012 (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(Unaudited)
Net operating income	$	10,372		$	10,338		$	19,827		$	20,327
Depreciation and amortization		(4,020	)		(3,232	)		(7,179	)		(6,579	)
General and administrative expenses		(2,857	)		(954	)		(3,574	)		(1,788	)
Impairment charges		(533	)		—			(533	)		—
Interest expense		(3,289	)		(4,217	)		(7,204	)		(8,344	)
Loss on extinguishment of debt		(1,125	)		—			(1,125	)		—
Gain on acquisitions		9,460			—			9,460			—
Other income		185			164			452			387
Results from discontinued operations		—			11			—			(10	)
Income tax benefit		211			—			211			—
Net income	$	8,404		$	2,110		$	10,335		$	3,993

Rental Revenues of Reportable Segments

Rental revenues of Armada Hoffler’s reportable segments for the three and six months ended June 30, 2013 and 2012 comprised the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(Unaudited)
Minimum rents
Office	$	6,105	$	5,944	$	12,205	$	11,947
Retail		4,609		4,366		8,974		8,696
Multifamily		2,063		1,603		3,690		3,193
Percentage rents(1)
Office		—		—		104		109
Retail		29		31		53		56
Multifamily		21		25		63		63
Other(2)
Office		315		622		597		903
Retail		745		790		1,361		1,535
Multifamily		344		228		582		494
Rental revenues	$	14,231	$	13,609	$	27,629	$	26,996

(1) Percentage rents are based on tenants’ sales.

(2) Other rental revenue includes cost reimbursements for real estate taxes, property insurance and common area maintenance as well as termination fees.

Property Expenses of Reportable Segments

Property expenses of Armada Hoffler’s reportable segments for the three and six months ended June 30, 2013 and 2012 comprised the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(Unaudited)
Rental expenses
Office	$	1,400	$	1,261	$	2,805	$	2,563
Retail		1,143		1,029		2,363		2,105
Multifamily		856		653		1,460		1,135
Other		—		1		—		5
Total	$	3,399	$	2,944	$	6,628	$	5,808
Real estate taxes
Office	$	540	$	543	$	1,081	$	1,087
Retail		486		448		946		901
Multifamily		222		186		433		372
Other		—		32		—		32
Total	$	1,248	$	1,209	$	2,460	$	2,392
Property expenses	$	4,647	$	4,153	$	9,088	$	8,200