AH Realty Trust — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported GAAP net loss of $6.6 million ($0.07 per diluted share) for the quarter ended September 30, 2026, compared to a net loss of $3.6 million ($0.04 per diluted share) in the same period in 2025.
• Funds from operations (FFO) available to common stockholders and OP Unitholders was $15.2 million ($0.16 per diluted share), down from $20.2 million ($0.20 per diluted share) in the prior year quarter.
• FFO, As Adjusted available to common stockholders and OP Unitholders was $15.3 million ($0.16 per diluted share), down from $17.0 million ($0.17 per diluted share) in the prior year quarter.
• Total debt outstanding was $1.0 billion as of September 30, 2026, including $19.0 million on the revolving credit facility; debt was 61.4% fixed or economically hedged.
• Net loss increase was driven by a $3.4 million impairment on multifamily assets (Gainesville, GA), partially offset by a $2.1 million decrease in interest expense following $456.0 million of debt repayments in Q2 2026.
• FFO decrease was primarily due to a $2.2 million drop in real estate financing segment gross profit (disposal of majority of portfolio and Solis Kennesaw placed on non-accrual) and a $2.1 million decrease in general contracting/real estate services gross profit, partially offset by lower interest expense.
• FFO, As Adjusted decrease was driven by reduced termination fees and increased stock compensation and IT costs, partially offset by decreased interest expense.
• Weighted average stabilized portfolio leased occupancy was 95.7% (Retail: 95.0%; Office: 96.6%) as of September 30, 2026.
• Weighted average stabilized portfolio economic occupancy was 90.3% (Retail: 91.0%; Office: 89.6%).

Guidance and Future Outlook:

• Raised full-year 2026 FFO, As Adjusted guidance to $0.57 to $0.59 per diluted share, an 11.5% increase from original guidance.
• Full-year 2026 guidance assumptions include:
  • Retail NOI: $70.3 million to $71.5 million.
  • Office NOI: $60.2 million to $61.4 million.
  • Equity Method Investment (EMI) Property Income: $3.6 million to $4.0 million.
  • Total Commercial NOI: $134.1 million to $136.9 million.
  • G&A Expenses: $19.0 million to $20.0 million.
  • Interest Expense: $54.6 million to $55.6 million.
  • Other NOI: $8.0 million to $9.0 million.
  • Preferred Stock Dividends: $11.5 million.
• Revised 2026 Same-Store NOI Cash growth expectations: Retail 2.50%–3.50%; Office 3.00%–4.00%.
• Outlook includes disposition of the Multifamily Portfolio (except Smith's Landing), exit of the remaining Real Estate Financing Portfolio, and ~$57 million secured debt paydowns plus ~$100 million net unsecured debt paydowns in 2026.
• No acquisitions are planned for 2026.
• Management expects 100% of debt to be fixed or economically hedged following expected dispositions of The Everly, Solis Gainesville II, and Greenside Apartments.

Business Segments and Product Lines:

• Same Store NOI on a cash basis increased 6.8% for the retail segment and 5.2% for the office segment compared to Q3 2025.
• Retail segment executed 14 lease renewals and 2 new leases (86,803 sq. ft.) with positive spreads: New leases 27.5% (GAAP)/16.5% (Cash); Renewals 11.6% (GAAP)/5.8% (Cash).
• Office segment executed 2 lease renewals and 4 new leases (29,574 sq. ft.) with positive spreads: New leases 22.8% (GAAP)/23.3% (Cash); Renewals 12.4% (GAAP)/1.5% (Cash).
• Retail performance highlighted by higher than anticipated percentage rent and sooner than expected tenant openings.
• Office performance highlighted by better than anticipated leasing activity and spreads.
• Operating expenses savings realized through successful real estate tax appeals and lower than anticipated bad debt.
• Unrealized losses on non-designated interest rate derivatives negatively affected FFO by $0.9 million in the quarter; total derivative portfolio value net of losses was $5.4 million.

Market and Competitive Landscape:

• The company describes itself as a "simpler, stronger" pure-play retail and mixed-use office REIT focused on the Sunbelt, mid-Atlantic, and Southeast.
• Management states the transformation of the company is "substantially complete."
• Portfolio performance is described as "ahead of expectations" with meaningful upside embedded in the current portfolio.

Risks and Challenges:

• Impairment charges of $3.4 million were recognized on multifamily assets (Gainesville, GA) during the quarter.
• Solis Kennesaw real estate financing investment was placed on non-accrual status.
• FFO, As Adjusted excludes income/loss from discontinued operations related to general contracting, real estate services, multifamily, and real estate financing, which may limit comparability.
• Forward-looking statements involve risks regarding assumptions, data precision, and the timing/amounts of various items impacting net income per diluted share.

Management Commentary and Tone:

• Shawn Tibbetts, Chairman, President, and CEO, stated the company is "simpler, stronger" with results reflecting the transformation.
• Management highlighted a "stronger, more flexible balance sheet with no material maturities until 2029."
• CEO noted a focus on driving "organic NOI growth from the portfolio we own today" as the company enters 2027.
• Tone is confident regarding the completion of strategic initiatives and the visibility into coming quarters.

Other Key Points:

• On October 28, 2026, the company refinanced the loan secured by the Constellation Energy Building, extending maturity to October 28, 2029, and executing a swap to fix the rate at 6.36%.
• On October 28, 2026, the company recast credit facilities, resulting in a $150.0 million revolving facility (5-year maturity), a $200.0 million term loan (4-year maturity), a $200.0 million term loan (5-year maturity), and a new $100.0 million term loan (7-year term). Total commitments can increase to $1.0 billion via an accordion feature.
• On October 30, 2026, the company sold The Everly and Solis Gainesville II multifamily assets for $95.5 million.
• On October 29, 2026, the Solis Kennesaw real estate financing investment was fully redeemed for $15.7 million.
• During the quarter, the company repurchased 0.8 million shares for $4.9 million ($6.25 average cost), bringing total 2026 repurchases to 6.4 million shares for $38.2 million ($5.96 average cost).
• The company expects to dispose of Greenside Apartments in November 2026.
• A webcast and conference call were scheduled for November 3, 2026, at 8:30 a.m. Eastern Time.