Segments (Tables)

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Net Operating Income of Reportable Segments

Net operating income of Armada Hoffler’s reportable segments for the three and six months ended June 30, 2014 and 2013 was as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(Unaudited)
Office real estate
Rental revenues	$	6,519	$	6,420	$	13,068	$	12,906
Property expenses		1,971		1,940		4,102		3,886
Segment net operating income		4,548		4,480		8,966		9,020
Retail real estate
Rental revenues		5,703		5,383		11,473		10,388
Property expenses		1,690		1,629		3,515		3,309
Segment net operating income		4,013		3,754		7,958		7,079
Multifamily residential real estate
Rental revenues		3,097		2,428		5,971		4,335
Property expenses		1,587		1,078		2,950		1,893
Segment net operating income		1,510		1,350		3,021		2,442
General contracting and real estate services
Segment revenues		20,495		23,291		39,729		41,247
Segment expenses		19,354		22,503		37,339		39,961
Segment net operating income		1,141		788		2,390		1,286
Net operating income	$	11,212	$	10,372	$	22,335	$	19,827

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, 2014 and 2013 (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(Unaudited)
Net operating income	$	11,212		$	10,372		$	22,335		$	19,827
Depreciation and amortization		(4,057	)		(4,020	)		(8,026	)		(7,179	)
General and administrative expenses		(1,981	)		(2,857	)		(4,027	)		(3,574	)
Impairment charges		—			(533	)		—			(533	)
Interest expense		(2,678	)		(3,289	)		(5,243	)		(7,204	)
Loss on extinguishment of debt		—			(1,125	)		—			(1,125	)
Gain on acquisitions		—			9,460			—			9,460
Other (loss) income		(194	)		185			(82	)		452
Income tax (provision) benefit		(29	)		211			(178	)		211
Net income	$	2,273		$	8,404		$	4,779		$	10,335

Rental Revenues of Reportable Segments

Rental revenues of Armada Hoffler’s reportable segments for the three and six months ended June 30, 2014 and 2013 comprised the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(Unaudited)
Minimum rents
Office	$	6,220	$	6,105	$	12,372	$	12,205
Retail		4,819		4,609		9,593		8,974
Multifamily		2,643		2,063		5,093		3,690
Percentage rents(1)
Office		—		—		45		104
Retail		46		29		137		53
Multifamily		24		21		59		63
Other(2)
Office		299		315		651		597
Retail		838		745		1,743		1,361
Multifamily		430		344		819		582
Rental revenues	$	15,319	$	14,231	$	30,512	$	27,629

(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, 2014 and 2013 comprised the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(Unaudited)
Rental expenses
Office	$	1,427	$	1,400	$	3,014	$	2,805
Retail		1,187		1,143		2,509		2,363
Multifamily		1,226		856		2,293		1,460
Total	$	3,840	$	3,399	$	7,816	$	6,628
Real estate taxes
Office	$	544	$	540	$	1,088	$	1,081
Retail		503		486		1,006		946
Multifamily		361		222		657		433
Total	$	1,408	$	1,248	$	2,751	$	2,460
Property expenses	$	5,248	$	4,647	$	10,567	$	9,088