AH Realty Trust, Inc.

Second-quarter FFO attributable to common shareholders was $15.4 million, or $0.16 per diluted share. FFO as adjusted was $14.1 million, or $0.14 per diluted share; AFFO was $18.1 million, or $0.18 per diluted share. Total property portfolio NOI was $35.3 million, up 2.2% year over year, and same-store cash NOI was up 5.3% blended, including 2.9% in retail and 8.3% in office. The company raised full-year 2026 FFO as adjusted guidance to $0.53-$0.57 per diluted share and lifted same-store NOI cash growth guidance to 2.5%-3.5% for retail and 2.75%-3.75% for office. Management said the outlook assumes completion of the remaining multifamily sales except Smith's Landing, exit of the remaining real estate financing portfolio, about $57 million of additional secured debt paydowns funded by Everly and Greenside, and about $100 million of further net unsecured debt paydowns, with no acquisitions planned for 2026.

Shawn Tibbetts framed the quarter as the most consequential in the company’s history, saying AH Realty Trust has moved from a multi-business, leveraged company to a pure-play retail and mixed-use office REIT. He emphasized that management has delivered on the strategic reset faster than expected through multifamily sales, debt reduction, and exiting construction and most real estate financing. His tone was confident and assertive, with repeated emphasis on embedded value, a stronger balance sheet, and closing the NAV gap through disciplined capital allocation and targeted redevelopment.

Matthew Barnes said the transformation is substantially complete and is already showing up in the numbers, with FFO as adjusted of $0.14 per share, AFFO of $0.18 per share, and property NOI of $35.3 million. He highlighted the leverage improvement from net debt to total adjusted EBITDAre of 8.3x to 7.1x after using $485 million of gross proceeds from the multifamily sale to pay down $353 million of variable-rate debt and $456 million of net debt in total during the quarter. He also noted total liquidity of $267.1 million, including $203.7 million of revolver availability and $35.5 million of cash, and said all debt was fixed or hedged at a weighted average interest rate of 4.3%.

Analysts focused on 2027 expirations, asking whether discussions had already started with larger tenants and whether any move-outs or weak renewals were expected. Management said it is proactively addressing renewals one to two years ahead, sees no real risk in next year’s retail roll, and feels good about office roll because Town Center is nearly fully leased and The Interlock has strong momentum. Another question asked whether tighter occupancy allows for lower free rent and TI concessions; management said pricing power remains favorable in amenitized office and supply-constrained retail, but capital intensity still depends on the asset and tenant mix. Jana Galan also asked about timing for signed-not-occupied office NOI, and management said most of the $4.6 million pipeline should convert in 2027, with some starting in the second half of 2026, especially at The Interlock.