Segments (Tables)

12 Months Ended

Dec. 31, 2013

Net Operating Income of Reportable Segments

Net operating income of Armada Hoffler’s reportable segments for each of the three years ended December 31, 2013 was as follows (in thousands):

	Years Ended December 31,
	2013		2012			2011
Office real estate
Rental revenues	$	25,794	$	25,815		$	24,680
Property expenses		7,892		7,668			8,001
Segment net operating income		17,902		18,147			16,679
Retail real estate
Rental revenues		21,755		21,164			20,105
Property expenses		6,779		6,629			5,779
Segment net operating income		14,976		14,535			14,326
Multifamily residential real estate
Rental revenues		9,971		7,457			7,793
Property expenses		4,478		3,176			3,498
Segment net operating income		5,493		4,281			4,295
General contracting and real estate services
Segment revenues		82,516		54,046			77,602
Segment expenses		78,813		50,103			72,138
Segment net operating income		3,703		3,943			5,464
Other		—		(74	)		(71	)
Net operating income	$	42,074	$	40,832		$	40,693

Reconciliation of Net Operating Income to Net Income

The following table reconciles net operating income to net income for each of the three years ended December 31, 2013 (in thousands):

	Years Ended December 31,
	2013			2012			2011
Net operating income	$	42,074		$	40,832		$	40,693
Depreciation and amortization		(14,898	)		(12,909	)		(12,994	)
General and administrative expenses		(6,937	)		(3,232	)		(3,728	)
Impairment charges		(580	)		—			—
Interest expense		(12,303	)		(16,561	)		(18,134	)
Loss on extinguishment of debt		(2,387	)		—			(3,448	)
Gain on acquisitions		9,460			—			—
Other income		297			777			258
Results from discontinued operations		—			(10	)		(381	)
Income tax provision		(273	)		—			—
Net income	$	14,453		$	8,897		$	2,266

Rental Revenues of Reportable Segments

Rental revenues of Armada Hoffler’s reportable segments for each of the three years ended December 31, 2013 comprised the following (in thousands):

	Years Ended December 31,
	2013		2012		2011
Minimum rents
Office	$	24,415	$	24,101	$	23,324
Retail		18,473		17,753		16,930
Multifamily		8,364		6,259		6,662
Percentage rents (1)
Office		104		109		107
Retail		121		121		129
Multifamily		105		103		161
Other (2)
Office		1,275		1,605		1,249
Retail		3,161		3,290		3,046
Multifamily		1,502		1,095		970
Rental revenues	$	57,520	$	54,436	$	52,578

(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 each of the three years ended December 31, 2013 comprised the following (in thousands):

	Years Ended December 31,
	2013		2012		2011
Rental expenses
Office	$	5,721	$	5,499	$	5,849
Retail		4,808		4,791		3,940
Multifamily		3,496		2,383		2,771
Other		—		9		8
Total		14,025		12,682		12,568
Real estate taxes
Office		2,171		2,169		2,152
Retail		1,971		1,838		1,839
Multifamily		982		793		727
Other		—		65		63
Total		5,124		4,865		4,781
Property expenses	$	19,149	$	17,547	$	17,349