Q3 2025 Armada Hoffler Properties Inc Earnings Call

Good morning, ladies and gentlemen, and welcome to the Armada Hoffler. Ahh third quarter 2025 earnings conference call at this time. All lines are in this and only mode. Following the presentation, we will conduct a question and answer session. If at any time during this, call, you require immediate assistance, please press star zero for the operator. This call is being recorded on November 4th 2025. I would now like to turn the conference over to Chelsea Forest, please go ahead.

Good morning and thank you for joining our Mada Hustler's third quarter 2025 earnings conference call on webcast.

On the call this morning, in addition to myself is Sean Tibet president and CEO and Matthew Barnes Smith CFO.

The press release announcing our third quarter earnings, along with our supplemental package, was distributed yesterday afternoon. A replay of this call will be available shortly after the conclusion of the call through December 4, 2025.

The numbers to assess Q3 are provided in the earnings press release.

For those who listen to the rebroadcast of this presentation, we remind you that the remarks are made here in as of today, November, 4th and will not be updated subsequent to this initial earnings call.

During this call, we may make forward-looking statements including statements related to the Future performance of our portfolio, our development pipeline, the impact of Acquisitions and dispositions our mezzanine program. Our construction business, our liquidity position, our portfolio performance and financing activities as well as comment on our Outlook.

Listeners are cautioned that any forward-looking statements are based upon management beliefs, assumptions, and expectations, taking into account information that is currently available.

These beliefs assumptions and expectations may change as a result of the possible events or factors, not all of, which are known and many of which are difficult to predict and generally beyond our control.

These risks and uncertainties can cause actual results to differ materially from our current expectations and we advise listeners to review the 4 looking statement, disclosure in our press release that, we distributed this morning and the risk factors disclosed and documents we have filed with or furnished to the FCC.

We will also discuss certain non-gaap Financial measures including but not limited to ffo and normalized ffo.

Definitions of these non-gaap measures as well as reconciliations to the most comparable gaap measures are included in the quarterly. Supplemental package.

On our website at our mahalo.com.

I will now turn the call over to Sean.

Good morning and thank you for joining us as we review. Our ma Hoppers third quarter results.

Before getting into the results, I want to thank our Board of Directors for appointing me, chairman of the board effective, the beginning of the year.

I appreciate their confidence in me and our leadership team.

We've made meaningful progress this year and have completed much of the hard work, required to position the company for a strong performance over the next several years.

We are simplifying the business and simultaneously driving operational excellence across the platform.

Our teams are laser focused on strengthening systems, streamlining processes and leveraging technology for data driven insights to enhance, decision-making and portfolio performance.

My priority is to ensure the market properly recognizes the unique value of our portfolio. As we enter 2026, as a more focused simpler stronger, read with a balance sheet position for growth.

Property level, cash flows, refreshing. The leadership. Team replacing a director and sharpening. Our focus on core operations.

We also aligned our 2025 Guidance with the plan reduction in fee income to better highlight the strength and stability of our recurring property earnings.

We are confident in the strategic actions completed this year and remain focused on repositioning Armada Hoffler for sustained growth and long-term shareholder value creation.

Our near-term objective is to demonstrate and unlock the value embedded in our real estate through continued, consistent execution, and transparent, communication with investors.

The Armada offer portfolio continues to deliver consistent. Noi growth underscoring, the quality of our assets and the consistency of our execution.

At the same time, we are making progress. Enhancing the balance sheet quality, and proactively managing our Capital base, including leveraging Capital recycling opportunities that strengthen long-term growth and financial flexibility.

Our strategic Foundation remains centered on quality. A core value, that guides how we operate and allocate capital.

We remain focused on maintaining a high performing portfolio, optimizing property level performance and delivering, reliable results, quarter after quarter.

The third quarter results were solid across our portfolio as outlined in our earnings release. We delivered normalized. Ffo of 29 cents per diluted share supported by consistent outperformance across our commercial, asset classes with overall portfolio. I could see averaging 96% including 96.5% in office, 96% in retail and 94.2%. In multi family, these results underscore steady, demand and durable performance across all segments.

Property level income, continues to outperform our 2025 guidance, which contributed to beating consensus for the quarter.

As we outline in previous quarters, we adjusted. Our outlook for construction activity this year and remain on track with those revised projections.

Higher noi. Offsetting, the construction adjustments has allowed us to maintain a 2025. Normalized, ffo guidance. Target range. Consistent with the original 2025, guidance, target range, which we are narrowing to 1 and 3 cents to 1.7 cents per diluted share.

This reflects our continued execution of the Strategic shift away from Alliance on fee income and to an earning stream predominantly reliant on higher quality. Recurring property level earnings.

Now, let me take a few minutes and walk through our key sectors.

From a broader Market perspective. Fundamentals remain supported for retail. Vacancy remains close to record lows. New Supply is constrained and retailers continue to show strong preference for high traffic. Open are centers and grocery anchored formats.

According to Green Street, retail pricing per square foot. Hosted double-digit annual growth in the second quarter reinforcing. Our bullish view of this asset class.

Our retail portfolio continues to demonstrate strength and resilience, supported by a focused strategy of owning properties located within submarkets, where we can leverage or create a competitive advantage.

Across these locations. We actively extract value. Through leasing tenant reconfiguration and Redevelopment initiatives. Positioning our centers to benefit from broader National Trends and retails.

For the third quarter. I retail portfolio continued to exhibit these strong fundamentals. Renewal spreads average, 6 and a half percent on a cash basis. Reflecting continued demand.

Flip traffic across our centers, particularly at mixed use destinations like Harbor Point and Southern post roads 13% compared to the prior quarter demonstrating the success of our Leasing and placemaking initiatives rooted in driving consistent consumer engagement and ultimately supporting rent growth.

As we mentioned last quarter, we have filled all of our big box. Vacancies, resulting from recent bankruptcies including cons Party City and Joanne with higher credit tenants.

This includes downsizing Burlington at Southgate in Colonial. Heights their make room for our national Sporting Goods retailer, as well as backfilling Party City with Boot Barn and Joanne with Burlington at Overlook Village, Inn Asheville. Strengthening the merchandising mix alongside anchors. Such as CJ Maxx, home, goods, and Ross.

These transactions reflect broader retail market dynamics.

Box development has been limited with few new entrance targeting info markets.

This constraint is elevated demand for existing well-located retail space.

High credit, tenants are seeking locations with strong demographics, nearby residential density, and complimentary tenants that drive traffic.

Our centers are meeting these criteria allowing us to capture top of Market rent on reposition or retail at its base.

At Columbus Village Inn Virginia Beach, we are nearing completion on reformatting the former Bed Bath & Beyond box to enhance the center with Trader, Joe's and golf galaxies. Both expected to open before the end of the year.

While enhancing the overall tenant mix and further strengthening the appeal of town center of Virginia Beach District.

Overall, our retail strategy, leverages market trends, tenant credit strength, and experiential demand to position our portfolio for sustained outperformance.

This knowledge driven approach, enables our motto Hopper to proactively identify opportunities, to optimize tenant mix capture, rent, growth, and maintain, our centers as destination locations, that attract customers and drive long-term value.

Well, the office side, while the broader sector continues to navigate structural headwinds, the recovery is clearly bifurcating in favor of high-quality amenitiz assets and desirable well-located markets.

Our Holdings sit on the right side of that, divide.

We continue to see occupancy stability, leasing wins, and renewal spreads that capture value for premium space.

As supply constraints and Senate preferences tilt toward quality rather than square footage growth, we believe our positioning provides a distinct advantage.

Our office portfolio is 96.5% occupied.

And few near-term, expirations demand continues to favor office properties in walkable amenity-rich, mixed use environments, where tenants benefit from retail residential, and dining access.

We continue to see interest from firms relocating from older, Suburban parks to Dynamic centralized locations. Supporting the long-term value of our office assets.

The former, we work floor and 1 City Center is the largest continuous vacant place in our portfolio and we are seeing active interests.

We recently announced a 12,000 square foot lease with Atlantic Union Bank, at 1 kilometers in town center, bringing overall occupancy in town center to 99%.

This stands in sharp contrast to the narrative scene. In most major US cities as office assets. Continue to demonstrate strong demand and sustained. High occupancy driven by their location within the Region's Premier mixed-use environments.

Asking rents across town center Assets. Now, averaged nearly 30% of the broader Virginia Beach market across office retail and multifamily underscoring. The effectiveness of our mixed use strategy and the enduring strength of this district is a true live work. Play Destination

Our multi family portfolio continues to demonstrate resilience supported by healthy lease and fundamentals and ProActive Management.

During the third quarter portfolio occupancy held at 94.2% in line with the second quarter.

Effective lease trade outs, average 2.3%, for the quarter with renewals averaging 4.3% trade out and new leases Flats.

These figures do not include the 22 units at Greenside, which were offline during the quarter, up modestly from an average of 19.7 units in the first and second quarters.

Last quarter is reported, I could see, included those units. So the current figures, reflect, a more accurate representation of stabilized performance.

Multifamily projects starts remain a critical factor in supporting fundamentals with construction lending down significantly compared to the 2020 to 2022 Cycles. The market is moving toward improved balance.

Elevated residential, borrowing rates are also keeping renters in existing units. Limited turnover and maintaining occupancy the ability across our portfolio.

Year-over-year. From September 2024. To September 2025 national average rents increased only 0.6%

Growth demonstrating the strength of our assets, and the effectiveness of our ProActive Management approach.

At Allied Harbor Point leads and continues to progress well and we are on track to stabilize mid 2026 earlier than projected.

Prospects and residents are drawn to the building's premier waterfront location, best-in-market views, and modern finishes.

As the newest residential property within the Harbour Pointe District, Allied offers and unmatched living experience that complements the surrounding retail office and entertainment uses.

Reinforcing its appeal as 1 of Baltimore's. Most desirable addresses.

At greenside, in Charlotte, remediation and enhancement work to address water intrusion in several uses progressing in phases. As we have previously, disclosed the effective units, I mentioned a few minutes ago are obviously an upside opportunity. Once we conclude this project,

These improvements will further strengthen the properties quality, and long term value supported by its prime location near, major medical and Innovation districts in Charlotte.

Looking ahead, we see multiple Avenues to drive as a foe to our portfolio Guided by a disciplined Capital allocation framework.

Strong leasing momentum in a higher return, Redevelopment pipeline. Allow us to capture. Rent growth and enhance property value through. Proactive renewals fills and targeted, reconfigurations.

at the same time, we pursue discipline Acquisitions through intentional Capital, recycling, activity focusing on projects that combine stabilized income with Redevelopment potential where possible

by targeting markets, where we can create a competitive Advantage including sub-markets that exhibit veiled. Positive fundamentals, beyond the typical sum belt trade areas, where pricing is being bid up. We leverage our Leasing and operating expertise to unlock value. Ensuring that each investment is accreted in the near term and drives long-term portfolio growth.

On the Capitol Front, we remain focused on enhancing flexibility and mitigating balance sheet risk.

Uh, July debt, private placement, raising 115 million, reflects continued confidence in the quality of our portfolio, our management team, our strategic approach, and the overall strength of the company.

The proceeds bolstered our liquidity position extended our weighted average debt maturity and we're used in part to fully repay. The construction revolver at Southern folks.

Further positioning us to navigate evolving market conditions with confidence.

We continue to focus on generating and increasingly, conservative balance sheets.

Starting to reduce leverage ensuring ample liquidity to fund ongoing Redevelopment and growth initiatives.

This discipline capital structure provides flexibility to act on attractive opportunities, while preserving balance sheet strength and stability.

We plan to continue expanding relationships with institutional credit investors supporting long-term growth and maintaining Financial optionality.

We remain focused on value creation through discipline, execution and intentional Capital allocation.

From retail leasing to office, occupancy, stability and multi family. Lisa, we are building a stronger simpler and more resilient Armada Hoffler capable of generating consistent predictable. Earnings growth.

I have proud of the momentum. We have generated and confident in the team's ability to deliver the same reliable earnings growth while enhancing shareholder value.

With that, I'll now turn the call over to Matt to provide additional detail on our financial results.

Good morning and thank you, Sean.

M Hoffler delivered a strong financial quarter as expected. Underscoring the consistency of our operating platform the quality of our Diversified portfolio and the continued execution of our Capital strategy.

With our balance sheet, repositioning went underway and fundamental stabilizing across our commercial asset classes. We entered the final quarter of the Year from a position of strength and operating flexibility

For the third quarter of 2025 normalized, ffo attributable to Common shareholders. Was 29.6 million or 29 cents per diluted. Share slightly above our expectations and 4 year guidance.

Ffo attributable to Common shareholders was 20.2 million or 20 cents per diluted share.

Demonstrated continuing alignment between our operating, cash flows and the restructured. Dividend same store and AI for the portfolio increased 1% on a gap basis.

Our performance. This quarter demonstrates, the benefits of a simpler more durable, capital structure and disciplined execution by management across our portfolio.

As of September 30th 2025 net debt to Total adjusted evict D to the 7.9. Times stabilized portfolio debt to stabilize portfolio, just to leave DED at 5.5 times. Total liquidity for the quarter is 141 million, including availability, under our revolving credit facilities,

Asfo pay ratio stands at 74.9% and after adjusting for non-cash interesting come the ratio is 93.9%.

our portfolio weighted average interest rate remained consistent at 4.3%

our Diversified portfolio continues to demonstrate meaningful strength, particularly across our retail and office Holdings. Leasing pipelines, remain active and Collections and occupancy levels have remained resilient in each of our segments, respectively.

As expected. Our retail segment, showed quarterly declines in same store, noi reflecting the temporary down time resulting from tenant bankruptcies such as cons Party City Joanne and Bed Bath and Beyond

Same store, noi decreased 0.9% on a gap basis and 2.5% on a cash basis. These near-term results are consistent with our strategy to create long-term value through tenant credit enhancements and capital upgrades where a returns can be achieved with over 85% of this space already under lease or Loi. We anticipate realizing initial Returns on our backfield efforts, beginning, in Q4 of 2025 continuing into 2026 with fully economics and over 20%, rent growth achieved by mid 2027,

Releasing spreads on renewed, leases remained healthy at 5.7%. On a gap basis and 6.5% on a cash basis. Demonstrating continued. Tenant. Demand for retail space. In a supply, constrained Market from a broader Market Advantage, fundamentals, remain supportive for retail.

In the office segment, we continue to see exceptional occupancy levels. At 96.5%, a modest improvement from last quarter, strong renewal spreads at 21.6% on a gap basis and 8.9% on a cash basis, albeit on a small amount of space that reflects the value for our premium Assets in desirable locations.

Our office segment posted positive. Same store, noi results, at 4.5% on both the Gap and cash basis.

By focusing on Capital and operational efforts on retail assets with dominant demographics, proven tendency and strong in place. Cash flows combined with office assets that reflect the flight towards quality and the margin for Renewal upside. We are well positioned to capture residual growth as the broader market conditions. Normalize in short, the intersection of internal execution. That is asset level leasing cost control and capital reinvestment and the external Tailwind of limited new supplying retail. Improving select office fundamentals, investor Capital returning to Quality. Real estate gives us confidence in the durability of our cash flows going forward,

Corporately. We continue to manage expenses, tightly DNA remains on track to be materially reduced year-over-year. Reinforcing. Our focus on efficiency while maintaining the resources required to execute on, managing our assets and Redevelopment opportunities.

As you all know, we have and are taking the appropriate steps to rightsize the construction entity aligning, its Workforce with current backlog levels, making fiscally responsible decisions for shareholder value.

Capital markets, remain selected and we are structuring our balance sheet to reflect that reality.

With our debt, private placement completed in July and our liquidity stabilized through improving cash management. We have the ability to remain patient and disciplined as the cycle evolves.

Will be able to achieve a portfolio weighted average interest rate slightly below 500 basis points.

Reflecting the stability in our operating results and visibility into year-end performance. We are narrowing. Our all-year normalized efforts range to a dollar 3 to 1.7 per diluted. Share, reaffirming our confidence in the trajectory of the business.

With that, I'll now turn the call back over to Sean for his closing remarks.

Thank you, Matt. I want to thank our team for their continued dedication to our shareholders and for their trust and support.

Operator. We are ready for the question and answer session.

Thank you, ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please? Press the star, followed by the number 1 on your touchtone phone, you will hear a prompt at your hand has been erased. Should you wish to decline from the polling process? Please press the star followed by the number too. And if you are using a speaker-phone, please leave the handset. Before pressing any Keys 1 moment, please for your first question.

Your first question comes from.

Victor fed with the Scotia Bank. Please go ahead.

Good morning everyone and thank you for taking my question. So I'd like to ask about acquisition of this 1, real estate financing asset solid Gainesville. Um, since the asset is across the street from the Everly, uh, we can ever already see some negative effects on both occupancy, which is more than 200 basis points down year-over-year and monthly rent which also declined more than 11% year every year. So, can you provide some insight into the expected going in cap rate on this asset and potential synergies for managing to assets all together? And as well as your expectation for same story, know, I grow for both assets over the next 2, 3 years.

Sure, thank you for the question, Victor. You know, I, I think this the answer to the question starts, uh, about a year ago, we had signal to the market that we would bring on to the balance sheet. Not only Gainesville 2, but the Allure. So, let's touch on Gainesville too first. Um, you know, our, our strategy and our thesis, there has always been we want to run this asset combined with the Gainesville 1 asset which is called the Everly or rebranded as the Everly. Um, we think there are synergies there. We think it comes in to answer your question at or above our cost of capital. Given that we are going to um, leverage synergies there, think headcount reduction, and a normal building as a result of running these

Together. I mean, just rough. We think there's about 50 basis points of value there to be gained by us.

In addition to that, as we see the new Supply burned off. By the way, the new Supply is ours, um, we'll see concessions burn off and therefore, we'll see some uplift, and we expect the positive same store to get there, um, you know, fairly soon after stabilization. So I think it's a good story. It's what we had intended to do for the past 12 months or so, and we're looking forward to it. Um, slightly different story, uh, for the Allure. We have seen some very strong bids in the market, uh, in that submarket, as of late. And so, we're in discussions with our partner about what's the best move, given the kind of high bids for that type of asset. There could be a case where we either bring it on balance sheet which, which we can do and would love to do, or is the better opportunity cost equation to sell that in the open market and and, uh, look for other deals with our partner there. So we'll we'll more to more to uh come there. That transaction essentially is going to be deferred until next year. Um,

So that's why you saw us pull that back from coming on the balance sheet here in the third or fourth quarter of this year.

Go ahead as a quick follow-up. So if let's say this Allure asset is sold to third party and uh lawn is repaid before maturity, will you receive any additional fees on top of the principal and what has already occurred occurred?

I think it's inappropriate, uh, for me to speak on that right now, Victor. I think, um, let's see what happens. We'll certainly recoup our capital and have a conversation with our partner about how to how to make the best deal there. But I think, you know, given where we are and what we're seeing in the market. We've still again, got an opportunity cost question here. The good news is, we are um, very much in the black on that asset which is great uh for both us and our partners so more to come there.

Got it. Thank you.

Thank you. The next question comes from Rob Stevenson with Johnny. Please go ahead.

Ing portfolio. How should we be thinking about the Kennesaw Georgia Loan in the asset as it gets closer to stabilization? Is that 1 also more likely to be sold in the loan repaid? Or is that 1 more likely to be brought on in-house.

Yeah, Rob, I think that's an asset. Um, it probably doesn't fit our core strategy. So, um, in addition to that, I think, I think you'll see that, um, you won't see us pursuing that 1 per se. Um, I think that'll be sold as the answer to the question. So yeah, that's not 1. We intend to bring into the poll.

Okay.

And then beyond the 18 million or so of in progress, redevelopments, any of the 10 or so, other opportunities in the supplemental expected to start in the next couple of quarters and how extensive are the costs associated with those opportunities.

You know, it's interesting. We've we've seen so much attractive, um, kind of projects there. We, I think let me start by saying this. We are continuing to see development deal flow. It just doesn't fit the risk adjusted spread. So our thesis is again, back to the opportunity cost kind of long-term value creation. We think that the capitol is best spent on some of these captive. Projects that being said, um, I don't see anything starting like fourth quarter, probably not first quarter, but our team is doing quite a bit of diligence. On a few of these, I mean think think out parcel think um, you know, older kind of 90s 2000s vintage assets with large parking lots. We're taking a look at. How do we use?

The real estate kind of under our control and create opportunities there for Lyft in the short run. So uh, long way of saying, um, we're looking at it, our development team is looking at it hard. We meet about it actually weekly um but I don't I don't think we know enough. Now to say we're ready to fire off the next 1 that said as you can see with the Trader, Joe's we're very excited about those types of opportunities in the list that they create.

Okay. And then last 1 for me. Um, how are you in the board thinking about, you know, uh, recycling assets and using the proceeds to reduce leverage and repurchase common stock? And when might be the right time to explore something with uh, 1 or more of the Baltimore assets, Etc,

Yeah, I think um the answer is we are constantly or consistently thinking about that. You know our job is capital allocators as you know is to think about the opportunity cost of that Capital. So um we as you may know um

Thought about an asset sale in Charlotte. We got some strong bids on Providence Plaza. The challenge became what is the best opportunity cost, like kind of equation for that capital? We saw rent growth climbing down in Charlotte, so we said, let's hold on to that asset. Um, but we are thinking about those things. Um, you see us renewing for long-term, kind of anchor releases, so on and so forth, to lock in the value in some of these assets. And at the right time, we'll strike on deals that make sense. I, you know, I don't want to say we're going to get into buyback.

Land. But certainly there's an attractive accretive um you know opportunity. There I'm not sure that we'll take that verse a long term property, you know, kind of income producing property, but yeah, I that's what we are doing right now, especially given the price of the equity, and how that's trading, uh, in today's market. So long way of saying, yeah, opportunity cost is our main focus and we are looking at all of the assets that we have um to determine where we can create some Arbitrage in terms of what the Market's valuing our real estate at and what the broader Market would potentially buy at.

Okay. Thanks guys. Appreciate the time this morning.

Yes, sir.

Thank you.

The next question comes from Jamie wise with cvu capital, please go ahead.

Thanks for taking my call, my question. Um, first question is is, could could map that discuss the annual cost of its interest rate swaps and what are your plans going forward with the interest rate swap activity? Also, if you were to change your approach to to buying the interest rate swaps and and reducing your interest as a result of the swaps, how would that impact apho?

Good, good morning, Jamie. Um, thank you for the, for the question. So, um,

Um, you know, would would fit in with the interest expense that we wanted, uh, total cost for full guidance. As I've talked about many times before, we are looking over the, the long-term, a transition in this balance sheet to long-term fixed rate debt. So, we would, um, you know, work through that, that cycle to reduce the Reliance on derivatives as we get those, um, you know, long-term fixed rate debts in in place. And that's what we're going to be looking for. As I mentioned in my remarks for those uh financing that are maturing in 2020 2026.

Okay. Thanks and and 1 other question earlier, in the year, you had mentioned that the um dividend was stress tested for recessionary scenarios, and also that you were expecting that that even data, sort of and the year around the, the 7.4x area, I was curious. If you could talk about that is, is that, is this a dividend stress tested for for 2026 um, and and different sorts of interest rate scenarios. Uh, as you look to do less um, hedging activity and um, and are those, you know, does management still hold by its what it said in earlier in the year. Thank you. Yeah. Certainly. So um, as you can recall, we right-size the dividend to make sure that our cash flows from the properties covered the

The, uh, distribution, the cash distributed out, the door in the dividend. So we did that back earlier in the year, um, and made sure that there was enough, um, buffer there to stress, test that, that dividend through the whole of the year, not just from um, a cash flow perspective. But also from the wreck compliance tax perspective um as as well, as you can see. Um there is a number of charts in our supplemental that show the dividend distribution compared to affo and affo less non-cash interest expense so as close to a a cash number as as we can provide and be and be transparent there.

Jamie, this is Sean. I think the answer to your question is. Yes.

Um, what we said in the earlier part of the Year holds true, we stress tested that again many different scenarios as it relates to the dividend as it relates to the kind of derivative positions. We are on a journey here. We've committed to the market that we want to continue to to get into more Pure, Fix rate debt. Hence like kind of our placement of 115 million back in the middle of the Year, back in the July time frame and and you're going to see us continue to navigate that Journey. It won't happen overnight. But yeah, I think the, the answer to the question is we want to move to a more, uh, pure fixed balance sheet over time and we intend to hold that dividend and have the ability to do so, um, you know, plus, or minus fluctuations in the market. Appreciate the question and then Jamie to touch on the last, the last bit of the question.

Um, as it relates to leverage, um, we still, you know, have the full debt from the development Pipeline on our books. And as we lease up the Allied and Southern post, leverage, will come down, um, over the the next or the coming coming quarters.

Okay, thanks.

Thank you.

The next question comes from John Peterson with the Jeffrey. Please go ahead.

Okay, thanks. Um, maybe I'll just stick on the dividend. I'm just curious how you think about growing the dividend, right? If we're modeling over the next few years, you know, should dividend growth tie out with afo per share growth at these levels or, um, are you going to kind of pause on on raises for a while to, um,

Uh, give yourself more of a buffer. How do how do we think about that?

Don, thank you for the question. Um, I think, you know, we think about this in a conservative way, right? We just, we just came off of a dividend restructure and so we want to be prudent here.

Um asfo as you know for us given the real estate financing platform um is maybe not the best indicator sometimes in terms of dividends so I think the the short answer to the question is we'll raise it when we feel we responsibly can to Matt's point. We don't want to go over dividend and we also don't want to trip the kind of tax ability concerns, uh, on the downside. So we're we're looking at it, um,

The 95 million Term Loan. That's coming due. Uh, next May. Should we think about, uh, proceeds from these financings? Uh, that, uh, that might be repaid, is is, uh, is what will be used to pay down that loan. Or would you refinance it? How should we think about your plans there?

Yes, sadly. Um so we have um uh primary credit facility. Um the revolving line of credit that matures, the first of January 27, and the term loans associated with that primary credit facility, the 1st of January 2028. So we've already engaged with the bank group and we will look to, um, both our kind of side term loans to wrap them up in um, that primary credit um, facility. So we have a number of different options. We can always go back to the market and do another debt private placement, um, and get some long-term fixed rate bonds there, to, to replace that. We can wrap that into the primary credit, um, facility or I'm sure our our lending partner on on that term loan that matures in in may, may want to kind of re reissue, um, at those at those same levels. So many many different options. And, yeah, we've already re-engaged with the partners to start working through that.

Okay. All right. And then last question for me just on Allied Harbor Point. Um, you said stabilization by mid next year? It's already 67.6% lease. So I'm just curious. Is it fully built out? Like, could it be 100% occupied today? Or is there still some work to do to, um, to be able to lease that up to stabilization?

No, John. We're materially there, um, the, the challenge for us and this is what we talked to the market about, um, kind of sense since, um, bringing this idea to fruition was, was balancing this kind of equilibrium, not cannibalizing, the 2 assets next door. So yes, it can be fully leased up. We're just very, we're very, um, mindful about not bottoming out our piece of the market there. So we, we set to the market back in September. We were looking at a roughly 24 months stabilization to your point. We will probably hit that sooner. Just want to be uh, conservative with what we're putting out there. In case we need to kind of hold rates, right. The economic equation is much better. We can hold the rates up and fill the building. Take a couple extra months, and it would be kind of cannibalizing our own position and the other 2.

Okay. All right. That's helpful. Thank you very much.

Yes, sir.

Thank you.

Our next question.

There are no further questions at this time.

I will now turn the call over to Sean Tibbits for closing remarks. Please go ahead sir.

Thank you, and thank you all for joining us today. We appreciate our investors partnership with us both on the equity and the credit side, our partners who do business with us in the sub-markets and each of our markets throughout,

Um you know the southeast United States. Thank you to our team. Thank you to our board, we appreciate your attention to our story. We look forward to continuing to create value for the long run. Thank you very much and have a nice day.

Thank you, ladies and gentlemen. This concludes today's conference call. Thank you for your participation. You may now disconnect.