# AH Realty Trust, Inc. (AHRT) Informational only - not investment advice. CIK: 0001569187 SIC: 6500 Real Estate SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Real Estate](/major-group/65/) > [SIC 6500 Real Estate](/industry/6500/) Latest 10-K filed: 2026-02-26 SEC page: https://www.sec.gov/edgar/browse/?CIK=1569187 Filing source: https://www.sec.gov/Archives/edgar/data/1569187/000156918726000019/ahh-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-27 · accession 0001569187-26-000021 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001569187.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 285,201,000 USD | 2025 | verified | | Net income | 5,604,000 USD | 2025 | verified | | Assets | 2,596,510,000 USD | 2025 | verified | | Net margin | 1.96% | 2025 | computed | | Operating margin | 28.35% | 2025 | computed | | Revenue YoY | +4.06% | 2025 | computed | | ROE | 0.89% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | AHRT | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 2.0% | 8.9% | 32 | 20 | | Operating margin | 28.4% | 10.4% | 67 | 10 | | Revenue growth | 4.1% | 8.9% | 33 | 19 | | ROE | 0.9% | 5.5% | 32 | 20 | | ROA | 0.2% | 1.4% | 26 | 20 | | Liabilities / equity | 2.82 | 1.39 | 79 | 20 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6500 Real Estate, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 285201000 | USD | 2025 | 2026-02-27 | | Net income | 5604000 | USD | 2025 | 2026-02-27 | | Assets | 2596510000 | USD | 2025 | 2026-02-27 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001569187.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2011 | 2012 | 2013 | 2014 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | | 258,385,000 | 302,771,000 | 193,317,000 | 257,198,000 | 383,634,000 | 302,533,000 | 471,131,000 | 253,911,000 | 274,068,000 | 285,201,000 | | Net income | | | | | 28,074,000 | 21,047,000 | 17,203,000 | 24,053,000 | 29,152,000 | 21,892,000 | 74,747,000 | 8,287,000 | 35,645,000 | 5,604,000 | | Operating income | | | | | 57,212,000 | 39,804,000 | 32,023,000 | 42,637,000 | 48,741,000 | 59,152,000 | 134,412,000 | 61,072,000 | 92,515,000 | 80,860,000 | | Diluted EPS | | | | | | | | 0.41 | 0.38 | 0.17 | 0.94 | -0.05 | 0.34 | -0.07 | | Operating cash flow | 23,336,000 | 22,360,000 | 22,175,000 | 31,362,000 | | | | | | | | 101,864,000 | 81,988,000 | 64,247,000 | | Dividends paid | | | | | 33,843,000 | 43,616,000 | 50,897,000 | 61,504,000 | 47,603,000 | 58,713,000 | 72,575,000 | 80,398,000 | 83,894,000 | 75,224,000 | | Share buybacks | | | | | | | | | | 0.00 | 0.00 | 12,628,000 | 0.00 | 0.00 | | Assets | | | | | 982,468,000 | 1,043,123,000 | 1,265,382,000 | 1,804,897,000 | 1,916,971,000 | 1,938,063,000 | 2,242,310,000 | 2,562,898,000 | 2,512,863,000 | 2,596,510,000 | | Liabilities | | | | | 633,490,000 | 622,840,000 | 809,492,000 | 1,149,450,000 | 1,160,169,000 | 1,158,240,000 | 1,338,296,000 | 1,757,720,000 | 1,623,194,000 | 1,767,318,000 | | Stockholders' equity | | | | | 148,143,000 | 226,690,000 | 273,871,000 | 408,577,000 | 523,199,000 | 555,352,000 | 647,450,000 | 572,622,000 | 670,636,000 | 627,776,000 | | Cash and cash equivalents | | | | | 21,942,000 | 19,959,000 | 21,254,000 | 39,232,000 | 40,998,000 | 35,247,000 | 47,499,000 | 20,026,000 | 31,936,000 | 49,150,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2011 | 2012 | 2013 | 2014 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | 10.87% | 6.95% | 8.90% | 9.35% | 7.60% | 7.24% | 15.87% | 3.26% | 13.01% | 1.96% | | Operating margin | | | | | 22.14% | 13.15% | 16.57% | 16.58% | 12.71% | 19.55% | 28.53% | 24.05% | 33.76% | 28.35% | | Return on equity | | | | | 18.95% | 9.28% | 6.28% | 5.89% | 5.57% | 3.94% | 11.54% | 1.45% | 5.32% | 0.89% | | Return on assets | | | | | 2.86% | 2.02% | 1.36% | 1.33% | 1.52% | 1.13% | 3.33% | 0.32% | 1.42% | 0.22% | | Liabilities / equity | | | | | 4.28 | 2.75 | 2.96 | 2.81 | 2.22 | 2.09 | 2.07 | 3.07 | 2.42 | 2.82 | ## As-reported value updates 12 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/AHRT/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001569187.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 0.38 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.03 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 165,939,000 | | 0.13 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 166,011,000 | 6,940,000 | 0.06 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 191,033,000 | -15,225,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 193,482,000 | 14,073,000 | 0.17 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 184,736,000 | 3,172,000 | 0.00 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 187,652,000 | -5,038,000 | -0.11 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 142,600,000 | 23,438,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 114,643,000 | -2,805,000 | -0.07 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 101,263,000 | 5,949,000 | 0.04 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 96,082,000 | 80,000 | -0.04 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | | 2,380,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2025-12-31 | 55,925,000 | | -0.01 | reported discrete quarter | | 2026-Q1 | 2026-03-31 | | -23,164,000 | | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 52,548,000 | -15,676,000 | -0.25 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from AHRT's latest 10-K: [/company/AHRT/business/](/company/AHRT/business/). ## Risk Factors Verbatim Item 1A Risk Factors from AHRT's latest 10-K: [/company/AHRT/risk-factors/](/company/AHRT/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1569187/000156918726000142/ahh-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-06 Report date: 2026-06-30 Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations References to "we," "our," "us," and "our company" refer to AH Realty Trust, Inc., a Maryland corporation, together with our consolidated subsidiaries, including AH Realty Trust, LP, a Virginia limited partnership (the "Operating Partnership"), of which we are the sole general partner. The following discussion should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this report. Forward-Looking Statements This report contains forward-looking statements within the meaning of the federal securities laws. We caution investors that any forward-looking statements presented in this report, or which management may make orally or in writing from time to time, are based on beliefs and assumptions made by, and information currently available to, management. When used, the words "anticipate," "believe," "expect," "intend," "may," "might," "plan," "estimate," "project," "should," "will," "result," and similar expressions, which do not relate solely to historical matters, are intended to identify forward-looking statements. Such statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. We caution you that while forward-looking statements reflect our good faith beliefs when we make them, they are not guarantees of future performance and are impacted by actual events when they occur after we make such statements. We expressly disclaim any responsibility to update forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data, or methods which may be incorrect or imprecise, and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: •adverse economic or real estate developments, either nationally or in the markets in which our properties are located; •our failure to generate sufficient cash flows to service our outstanding indebtedness;  •defaults on, early terminations of, or non-renewal of leases by tenants, including significant tenants;  •bankruptcy or insolvency of a significant tenant or a substantial number of smaller tenants; •difficulties in identifying or completing development, acquisition, or disposition opportunities;  •our ability to commence or continue development projects on the timeframes and terms currently anticipated; •our failure to successfully operate developed and acquired properties; •fluctuations in interest rates; •the impact of inflation, including increases in operating costs; •our failure to obtain necessary outside financing on favorable terms or at all;  •our inability to extend the maturity of or refinance existing debt or comply with the financial covenants in the agreements that govern our existing debt;  •financial market fluctuations;  •risks that affect the general retail environment or the market for office properties or multifamily units;  •the competitive environment in which we operate;  •decreased rental rates or increased vacancy rates;  •conflicts of interests with our officers and directors;  •lack or insufficient amounts of insurance;  •environmental uncertainties and risks related to adverse weather conditions and natural disasters;  41 Table of Contents •other factors affecting the real estate industry generally;  •our failure to maintain our qualification as a real estate investment trust ("REIT") for U.S. federal income tax purposes;  •limitations imposed on our business and our ability to satisfy complex rules in order for us to maintain our qualification as a REIT for U.S. federal income tax purposes; •changes in governmental regulations or interpretations thereof, such as real estate and zoning laws and increases in real property tax rates and taxation of REITs; and •potential negative impacts from changes to U.S. tax laws. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We caution investors not to place undue reliance on these forward-looking statements and urge investors to carefully review the disclosures we make concerning risks and uncertainties in the sections entitled "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Annual Report on Form 10-K, as well as risks, uncertainties, and other factors discussed in this Quarterly Report on Form 10-Q, and other documents that we file from time to time with the Securities and Exchange Commission (the "SEC"). Business Description We are a self-managed REIT with over four decades of experience managing high-quality properties located primarily in the Mid-Atlantic and Southeastern United States. Our focus is to deliver long-term, sustainable shareholder value by consistently investing in and operating the highest-quality assets, maintaining a robust and resilient balance sheet, and fostering a dynamic, highly skilled team. We focus on well-positioned secondary and tertiary markets that demonstrate strong population growth, favorable demand drivers, and attractive long-term fundamentals. Refer to Note 1 to our condensed consolidated financial statements in Item 1 of this Quarterly Report on Form 10-Q for the composition of properties in our operating property portfolio, as well as properties not yet stabilized. Discontinued Operations During the first quarter, the Company completed a strategic review of its business and elected to divest its real estate financing and multifamily segments, which, together with the general contracting and real estate services segment, are now reported as discontinued operations. The decision to exit these segments was made in connection with the Company’s broader initiative to simplify its business model and focus on its core retail and office real estate operations. Management believes that the divestiture of these segments will allow the Company to further strengthen its balance sheet and focus on its core competencies, while reducing complexity and risk associated with non-core activities. The Company entered into a letter of intent relating to the potential sale of its general contracting and real estate services business during the period, and subsequently closed on this sale on April 30, 2026. The transaction included a transition services agreement for a 90 day period of time following the closing to provide human resources, payroll services, and information technology services. On March 13, 2026, certain wholly owned subsidiaries of the Company entered into a purchase and sale agreement with an unrelated third-party to sell eleven out of the Company's fourteen multifamily properties for a combined purchase price of $562.0 million in cash, subject to certain adjustments, with a $15.0 million non-refundable deposit (the "Multifamily Portfolio Sale"). The Multifamily Portfolio Sale is not contingent on the receipt of financing by the buyer. On May 20, 2026, the Company completed the disposition of nine properties, which included the disposition of retail components of five of the properties and the office component of one of the properties, for aggregate proceeds of $485.0 million (the "First Closing"). The nine properties that were disposed of were: (1) Encore Apartments, (2) The Cosmopolitan, (3) Allied | Harbor Point, (4) 1405 Point Street, (5) 1305 Dock Street, (6) Chronicle Mill Apartments, (7) Chandler Residences, (8) The Edison and (9) Liberty Apartments. The Company expects to complete the disposition of the remaining assets included in the Multifamily Portfolio Sale as follows: Greenside Apartments by the end of 2026 and Premier Apartments by mid-2027. Two of the Company's other multifamily assets, The Everly and Solis Gainesville II, became subject to a purchase and sale agreement as of July 17, 2026 and are expected to close by the end of the third quarter of 2026. In addition, on March 27, 2026, the Company sold two of the real estate financing investments and on April 30, 2026, the investment secured by The Allure at Edinburgh was fully redeemed. The remaining investment, Solis Kennesaw, is expected to close by the end of the first quarter of 2027. 42 Table of Contents There can be no assurances that the Multifamily Portfolio Sale or the sale of the Company's other assets will occur on the timeline or on the terms the Company anticipates, if at all. The material terms of these transactions included cash consideration, the transfer of related assets and liabilities, and the settlement of certain contingent obligations. As a result of these actions, the results of operations, assets, and liabilities of the general contracting and real estate services, multifamily, and real estate financing segments have been reclassified as discontinued operations for all periods presented. The following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto appearing in Item 1 of this Quarterly Report on Form 10-Q. All historical financial information has been retrospectively adjusted to reflect the general contracting and real estate services, multifamily, and real estate financing businesses as discontinued operations. The decision to exit these segments resulted in the reclassification of approximately $21.1 million in revenue for the three months ended June 30, 2026 to discontinued operations. Operating Segments Following the discontinuation of the general contracting and real estate services, multifamily, and real estate financing segments, we operate our business through two reportable segments: 1.Retail real estate: The Company’s retail portfolio is concentrated in high-barrier-to-entry markets and is anchored by credit-worthy tenants, including grocery stores and big-box retailers. As of June 30, 2026, the retail portfolio had a leased occupancy level of 95.1%, and renewal spreads (on a GAAP basis) of 11.5% . 2.Office real estate: The office portfolio consists primarily of Class A office space located in mixed-use town centers, such as the Town Center of Virginia Beach and Harbor Point in Baltimore. The segment continues to benefit from the "flight to quality" trend, maintaining an occupancy level of 96.7% and new leasing spreads (on a GAAP basis) of 20.5%. Second Quarter 2026 and Recent Highlights The following highlights our results of operations and significant transactions for the three months ended June 30, 2026 and other recent developments: •As part of its ongoing governance enhancements supporting the Company’s strategic transformation, the Company advanced its board refreshment process by electing Theodore Bigman and Lori Wittman as independent directors at the Company’s 2026 Annual Meeting of Stockholders (the “2026 Annual Meeting”). Following the 2026 Annual Meeting, Dennis Gartman and George Allen retired from the Board and each of Mr. Bigman and Ms. Wittman were appointed to the board’s Audit [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1569187/000156918726000019/ahh-20251231.htm Complete FY 2025 MD&A: /company/AHRT/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-26 Report date: 2025-12-31 Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations. Business Description We are a self-managed REIT with over four decades of experience managing high-quality properties located primarily in the Mid-Atlantic and Southeastern United States. As of December 31, 2025, our stabilized operating property portfolio was comprised of 46 retail properties, 14 office properties, and 11 multifamily properties. In addition to our operating property portfolio, we had three retail properties, two office properties, and three multifamily properties in various stages of predevelopment, development, redevelopment, or stabilization as of December 31, 2025. We also have historically provided general contracting services to third parties and invested in development projects through mezzanine lending arrangements and equity investments. Substantially all of our assets are held by, and all of our operations are conducted through, our Operating Partnership. We are the sole general partner of our Operating Partnership and, as of December 31, 2025, we owned, through a combination of direct and indirect interests, 77.3% of the outstanding OP Units in our Operating Partnership. We elected to be taxed as a REIT for U.S. federal income tax purposes commencing with the taxable year ended December 31, 2013. Our principal executive office is located at 222 Central Park Avenue, Suite 1000, Virginia Beach, Virginia 23462 in the Armada Hoffler Tower at the Virginia Beach Town Center. In addition, we have a construction office located at 1300 Thames Street, Suite 30, Baltimore, Maryland 21231 in Thames Street Wharf at Harbor Point. The telephone number for our principal executive office is (757) 366-4000. We maintain a website at ArmadaHoffler.com. The information on, or accessible through, our website is not incorporated into and does not constitute a part of this report. Discontinued Operations The following discussion should be read in conjunction with the consolidated financial statements and notes thereto appearing in Item 8 of this Annual Report on Form 10-K. All historical financial information has been retrospectively adjusted to reflect the general contracting and real estate services segment as discontinued operations. The decision to exit the general contracting and real estate services segment resulted in the reclassification of approximately $132.5 million in revenue for the year ended December 31, 2025 to discontinued operations. Critical Accounting Policies and Estimates Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements that have been prepared in accordance with GAAP. Our accounting policies are more fully described in Note 2 of our consolidated financial statements in Item 8 of this Annual Report on Form 10-K. As disclosed in Note 2, the preparation of these financial statements requires us to exercise our best judgment in making estimates that affect the reported amounts of assets, liabilities, revenues, and expenses. We base our estimates on historical experience and other assumptions that we believe to be reasonable under the circumstances. We evaluate our estimates on an ongoing basis, based upon current available information. Actual results could differ from these estimates. We believe the following accounting policies and estimates are the most critical to understanding our reported financial results as their effect on our financial condition and results of operations is material. Rental Revenues We lease our properties under operating leases and recognize base rents on a straight-line basis over the lease term. We also recognize revenue from tenant recoveries, through which tenants reimburse us for expenses paid by us such as utilities, janitorial, repairs and maintenance, security and alarm, parking lot and grounds, general and administrative, management fees, insurance, and real estate taxes on an accrual basis. Our rental revenues are reduced by the amount of any leasing incentives on a straight-line basis over the term of the applicable lease. We include a renewal period in the lease term only if it appears at 46 Table of Contents lease inception that the renewal is reasonably certain. We begin recognizing rental revenue when the tenant has the right to take possession of or controls the physical use of the property under lease. Rental revenue is recognized subject to management’s evaluation of tenant credit risk. The extended collection period for accrued straight-line rental revenue along with our evaluation of tenant credit risk may result in the nonrecognition of all or a portion of straight-line rental revenue until the collection of substantially all such revenue for a tenant is probable. Operating Property Acquisitions Acquisitions of operating properties have been and will generally be accounted for as acquisitions of a group of assets, with costs incurred to effect an acquisition, including title, legal, accounting, brokerage commissions, and other related costs being capitalized as part of the cost of the assets acquired. In connection with operating property acquisitions, we identify and recognize all assets acquired and liabilities assumed at their relative fair values as of the acquisition date. The purchase price allocations to tangible assets, such as land, site improvements, and buildings and improvements, are presented within income producing property in the consolidated balance sheets and depreciated over their estimated useful lives. Acquired lease intangible assets are presented as a separate component of assets on the consolidated balance sheets. Acquired lease intangible liabilities are presented within other liabilities in the consolidated balance sheets. We amortize in-place lease assets as depreciation and amortization expense on a straight-line basis over the remaining term of the related leases. We amortize above-market lease assets as reductions to rental revenues on a straight-line basis over the remaining term of the related leases. We amortize below-market lease liabilities as increases to rental revenues on a straight-line basis over the remaining term of the related leases. We amortize above and below-market ground lease assets as depreciation and amortization on a straight-line basis over the remaining term of the related leases. We capitalize the costs related to operating property acquisitions that do not meet the definition of a business. We value land based on a market approach, looking to recent sales of similar properties, adjusting for differences due to location, the state of entitlement, and the shape and size of the parcel. Improvements to land are valued using a replacement cost approach. The approach applies industry standard replacement costs adjusted for geographic specific considerations and reduced by estimated depreciation. The value of buildings acquired is estimated using the replacement cost approach, assuming the buildings were vacant at acquisition. The replacement cost approach considers the composition of the structures acquired, adjusted for an estimate of depreciation. The estimate of depreciation is made considering industry standard information and the expected useful lives of the assets. The value of acquired lease intangible assets and liabilities considers the estimated cost of leasing the properties as if the acquired buildings were vacant, as well as the value of the current leases relative to market-rate leases. The in-place lease value is determined using an estimated total lease-up time and lost rental revenues during such time. The value of current leases relative to market-rate leases is based on market rents obtained for comparable leases. Given the significance of unobservable inputs used in the valuation of acquired real estate assets, we classify them as Level 3 inputs in the fair value hierarchy. We value debt assumed in connection with operating property acquisitions based on a discounted cash flow analysis of the expected cash flows of the debt. Such analysis considers the contractual terms of the debt, including the period to maturity, credit characteristics, and other terms of the arrangements, which are Level 3 inputs in the fair value hierarchy (as described in Note 13 to our consolidated financial statements in Item 8 of this Annual Report on Form 10-K). Real Estate Impairment We evaluate our real estate assets for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. If such an evaluation is necessary, we compare the carrying amount of any such real estate asset with the undiscounted expected future cash flows that are directly associated with, and that are expected to arise as a direct result of, its use and eventual disposition. Our estimate of the expected future cash flows attributable to a real estate asset is based upon, among other things, our estimates regarding future market conditions, rental rates, occupancy levels, tenant improvements, leasing commissions, tenant concessions, and assumptions regarding the residual value of our properties. If the carrying amount of a real estate asset exceeds its associated undiscounted expected future cash flows, we recognize an impairment loss to reduce the carrying amount of the real estate asset to its fair value based on marketplace participant assumptions. Interest Income Interest income on notes receivable is accrued based on the contractual terms of the loans and when, in the opinion of management, it is deemed collectible. Many loans provide for accrual of interest that will not be paid until maturity of the loan. Interest is recognized on these loans at the accrual rate subject to management's determination that accrued interest is ultimately collectible, based on the underlying collateral and the status of development activities, as applicable. If management cannot 47 Table of Contents make this determination, recognition of interest income may be fully or partially deferred until it is ultimately paid. Interest income is also accrued as earned on interest-bearing deposits. Expected Credit Losses We evaluate the collectability of both the interest on and principal of each of our notes receivable based primarily upon the value of the underlying development project. We consider factors such as the progress of development activities, including leasing activities, projected development costs, and current and projected loan balances. We also consider historical industry data, such as loan defaults and losses experienced on loans secured by other development projects, and current economic conditions that may affect the collectability of the remaining cash flows. We measure expected credit losses to be incurred over the remaining contractual term based on the risk rating of each loan. See Note 2 to our consolidated financial statements in Item 8 of this Annual Report on Form 10-K for details on risk rating determination. If a loan is rated as substandard, we then estimate expected credit losses as the difference between the amortized cost basis of the outstanding loan and the estimated projected sales proceeds of the underlying collateral. Recent Accounting Pronouncements For a summary of recent accounting pronouncements and the anticipated effects on our consolidated financial statements see Note 2 to our consolidated financial statements included in Item 8 of this Form 10-K. Segment Results of Continuing Operations As of December 31, 2025, we operated our business in four segments: (i) retail real estate, (ii) office real estate, (iii) multifamily residential real estate, and (iv) real estate financing. NOI is the primary measure used by our chief operating decision-maker to assess segment performance and allocate our resources among our segments. We calculate NOI as segment revenues less segment expenses. Segment revenues in [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/AHRT/mda/fy2025/ All MD&A years: /company/AHRT/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/AHRT/mda/fy2024/): filed 2025-02-28; accession 0001569187-25-000016 (https://www.sec.gov/Archives/edgar/data/1569187/000156918725000016/ahh-20241231.htm) - [FY 2023 MD&A](/company/AHRT/mda/fy2023/): filed 2024-02-29; accession 0001569187-24-000012 (https://www.sec.gov/Archives/edgar/data/1569187/000156918724000012/ahh-20231231.htm) - [FY 2022 MD&A](/company/AHRT/mda/fy2022/): filed 2023-02-23; accession 0001569187-23-000010 (https://www.sec.gov/Archives/edgar/data/1569187/000156918723000010/ahh-20221231.htm) - [FY 2021 MD&A](/company/AHRT/mda/fy2021/): filed 2022-02-24; accession 0001569187-22-000008 (https://www.sec.gov/Archives/edgar/data/1569187/000156918722000008/ahh-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 6500 Real Estate) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Housing & construction](/thread/housing-construction/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/AHRT.md · JSON record: /company/AHRT.json · verified financials: /company/AHRT/financials.json / /company/AHRT/financials.csv · machine TOC for the whole site: /llms.txt