Third Quarter 2026
Filed Nov 2, 2026AH Realty Trust Reports Third Quarter 2026 Results; Raises Full Year 2026 FFO, As Adjusted Guidance to $0.57 to $0.59 Per Diluted Share
Retail and office same-store cash NOI grew 6.8% and 5.2%, respectively, and the Company raised FFO, As Adjusted guidance, but quarterly net loss, FFO and FFO, As Adjusted were each weaker than the prior-year quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $52.32M | – | – |
| Rental revenues, three months ended September 30, 2026GAAP | $52.32M | – | – |
| Rental expenses, three months ended September 30, 2026GAAP | $12.40M | – | – |
| Real estate taxes, three months ended September 30, 2026GAAP | $4.78M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $18.25M | – | – |
| General and administrative expenses, three months ended September 30, 2026GAAP | $5.17M | – | – |
| Impairment charges, three months ended September 30, 2026GAAP | — | – | – |
| Total expenses, three months ended September 30, 2026GAAP | $40.60M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $11.72M | – | – |
| Interest income, three months ended September 30, 2026GAAP | $277K | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$13.14M | – | $2.1 million decrease |
| Equity in income of unconsolidated real estate entities, three months ended September 30, 2026GAAP | $193K | – | – |
| Change in fair value of derivatives and other, three months ended September 30, 2026GAAP | $477K | – | – |
| Loss from continuing operations, three months ended September 30, 2026GAAP | −$267K | – | – |
| Loss from discontinued operations, net of taxes, three months ended September 30, 2026GAAP | −$3.34M | – | – |
| Net loss, three months ended September 30, 2026GAAP | −$3.61M | – | – |
| Net loss available to common stockholders and OP Unitholders, three months ended September 30, 2026GAAP | −$6.62M | – | – |
| Net loss available to common stockholders and OP Unitholders per diluted share and unit, three months ended September 30, 2026GAAP | $(0.07) | – | – |
| FFO available to common stockholders and OP Unitholders, three months ended September 30, 2026non-GAAP | $15.23M | – | – |
| FFO available to common stockholders and OP Unitholders per diluted share and unit, three months ended September 30, 2026non-GAAP | $0.16 | – | – |
| FFO, As Adjusted available to common stockholders and OP Unitholders, three months ended September 30, 2026non-GAAP | $15.32M | – | – |
| FFO, As Adjusted available to common stockholders and OP Unitholders per diluted share and unit, three months ended September 30, 2026non-GAAP | $0.16 | – | – |
| Weighted-average common shares and units - diluted, three months ended September 30, 2026GAAP | 97,293 | – | – |
| Total revenues, nine months ended September 30, 2026GAAP | $157.2M | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $33.13M | – | – |
| Interest expense, nine months ended September 30, 2026GAAP | −$41.05M | – | – |
| Net loss available to common stockholders and OP Unitholders, nine months ended September 30, 2026GAAP | −$64.08M | – | – |
| Net loss available to common stockholders and OP Unitholders per diluted share and unit, nine months ended September 30, 2026GAAP | $(0.65) | – | – |
| FFO available to common stockholders and OP Unitholders, nine months ended September 30, 2026non-GAAP | $51.23M | – | – |
| FFO, As Adjusted available to common stockholders and OP Unitholders, nine months ended September 30, 2026non-GAAP | $44.48M | – | – |
| FFO, As Adjusted available to common stockholders and OP Unitholders per diluted share and unit, nine months ended September 30, 2026non-GAAP | $0.45 | – | – |
| Weighted average stabilized portfolio leased occupancy, as of September 30, 2026other | 95.7% | – | – |
| Weighted average stabilized portfolio economic occupancy, as of September 30, 2026other | 90.3% | – | – |
| Retail leased occupancy, as of September 30, 2026other | 95.0% | – | – |
| Office leased occupancy, as of September 30, 2026other | 96.6% | – | – |
| Retail economic occupancy, as of September 30, 2026other | 91.0% | – | increased 0.1% |
| Office economic occupancy, as of September 30, 2026other | 89.6% | – | – |
| Total debt outstanding, as of September 30, 2026GAAP | $1B | – | – |
| Indebtedness, net, as of September 30, 2026GAAP | $953.5M | – | – |
| Cash and cash equivalents, as of September 30, 2026GAAP | $27.21M | – | – |
| Total Assets, as of September 30, 2026GAAP | $1.92B | – | – |
| Total Liabilities, as of September 30, 2026GAAP | $1.22B | – | – |
| Total Equity, as of September 30, 2026GAAP | $693.0M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Retail Same Store NOI, Cash Basis, three months ended September 30, 2026Sooner than expected retail tenant openings and rent commencements, higher than anticipated percentage rent from retail tenants, OpEx savings resulting from successful real estate tax appeals, and lower than anticipated bad debt. | $16.95M | – | 6.8% |
| Office Same Store NOI, Cash Basis, three months ended September 30, 2026Better than anticipated office leasing activity and spreads. | $13.63M | – | 5.2% |
| Retail Segment NOI, three months ended September 30, 2026Same-store NOI, cash basis was $16,950 (in thousands), while non-same-store NOI was $397 (in thousands). | $17.79M | – | – |
| Office Segment NOI, three months ended September 30, 2026Same-store NOI, cash basis was $13,635 (in thousands), while non-same-store NOI was $(157) (in thousands). | $15.32M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full-year 2026 outlook
- Operating expensesG&A Expenses: -$20.0M to -$19.0M
- NoteRETAIL NOI: $70.3M to $71.5M
- NoteOFFICE NOI: $60.2M to $61.4M
- NoteEQUITY METHOD INVESTMENT ("EMI") PROPERTY INCOME: $3.6M to $4.0M
- NoteACQUISITION NOI: $0.0M to $0.0M
- NoteTOTAL COMMERCIAL NOI: $134.1M to $136.9M
- NoteINTEREST EXPENSE: -$55.6M to -$54.6M
- NoteOTHER NOI: $8.0M to $9.0M
- NotePREFERRED STOCK DIVIDENDS: -$11.5M to -$11.5M
- NoteFUNDS FROM OPERATIONS, AS ADJUSTED ("FFO, AS ADJUSTED"): $56.3M to $58.3M
- NoteFFO, AS ADJUSTED PER DILUTED SHARE: $0.57 to $0.59
- NoteRevised 2026 Same-Store NOI Cash growth ranges, Retail: 2.50% - 3.50%
- NoteRevised 2026 Same-Store NOI Cash growth ranges, Office: 3.00% - 4.00%
- NoteRemaining Secured Debt Paydowns of ~$57M
- NoteRemaining Net Unsecured Debt Paydowns of ~$100M in 2026
- NoteNo Acquisitions in 2026
Capital returns
- During the quarter ended September 30, 2026, the Company repurchased 0.8 million shares of common stock for $4.9 million at an average cost of $6.25 per share.
- Total for the year was 6.4 million shares repurchased for a total cost of $38.2 million, at an average cost of $5.96 per share.
- Preferred stock dividends were $(2,887) (in thousands) for the three months ended September 30, 2026 and $(8,661) (in thousands) for the nine months ended September 30, 2026.
What drove it
- Retail same-store NOI, cash basis increased 6.8% compared to the quarter ended September 30, 2025.
- Office same-store NOI, cash basis increased 5.2% compared to the quarter ended September 30, 2025.
- Retail new leasing spreads were 27.5% (GAAP) and 16.5% (Cash); renewal leasing spreads were 11.6% (GAAP) and 5.8% (Cash).
- Office new leasing spreads were 22.8% (GAAP) and 23.3% (Cash); renewal leasing spreads were 12.4% (GAAP) and 1.5% (Cash).
- Interest expense decreased by $2.1 million following $456.0 million of debt repayments in the second quarter, net of additional borrowings, with proceeds from the Multifamily Portfolio Sale First Closing.
- The Company sold The Everly and Solis Gainesville II multifamily assets on October 30, 2026 for a purchase price of $95.5 million.
- The Solis Kennesaw real estate financing investment was fully redeemed on October 29, 2026 for $15.7 million.
Concerns
- Net loss available to common stockholders and OP Unitholders was $(6,622) (in thousands), or $(0.07) per diluted share, compared with $(3,575) (in thousands), or $(0.04) per diluted share, in the prior-year quarter.
- FFO declined to $15,226 (in thousands) from $20,170 (in thousands), primarily due to lower real estate financing segment gross profit and lower general contracting and real estate services gross profit following dispositions.
- FFO, As Adjusted declined to $15,319 (in thousands) from $16,968 (in thousands), with reduced termination fees and higher stock compensation and information technology costs cited as offsets to lower interest expense.
- The Company cited $3.4 million of impairment in its multifamily portfolio, all related to Gainesville, GA assets, as a factor in the period-over-period net-loss change.
- Unrealized losses on non-designated interest rate derivatives that negatively affected FFO were $0.9 million during the third quarter of 2026.
- Economic occupancy remained below leased occupancy, at 91.0% versus 95.0% in retail and 89.6% versus 96.6% in office.
What to watch
- Execution of full-year FFO, As Adjusted guidance of $0.57 to $0.59 per diluted share.
- Retail and office same-store NOI cash growth against revised ranges of 2.50% - 3.50% and 3.00% - 4.00%, respectively.
- Completion of the expected Greenside Apartments disposition in November 2026 and remaining secured debt paydowns of ~$57M.
- Remaining net unsecured debt paydowns of ~$100M in 2026.
- The planned exit of the remaining Real Estate Financing Portfolio.
- The effect of retail tenant openings, rent commencements, percentage rent, leasing spreads, and economic occupancy on NOI.
Balance sheet and cash flow
- Cash and cash equivalents were $27,215 (in thousands) as of September 30, 2026, compared with $40,743 (in thousands) as of December 31, 2025.
- Total debt outstanding was $1.0 billion as of September 30, 2026, including $19.0 million outstanding under the revolving credit facility.
- Debt was 61.4% fixed or economically hedged as of September 30, 2026 after considering interest rate swaps.
- The Company refinanced the Constellation Energy Building loan on October 28, 2026, extending its maturity to October 28, 2029, and executed a swap fixing the rate at 6.36%.
- The October 28, 2026 recast included a $150.0 million revolving credit facility with a 5 year maturity, a $200.0 million term loan with a 4 year maturity, a $200.0 million term loan with a 5 year maturity, and a $100.0 million term loan with a 7 year term.
- The newly structured term loans were hedged at a weighted average rate of 4.93%.
- The Company stated that the refinancing arrangements and swap agreements will result in 100% fixed or economically hedged debt following specified dispositions, the Solis Kennesaw redemption, and the expected Greenside Apartments disposition.
- No operating cash flow, investing cash flow, financing cash flow, or free cash flow was reported.
Analysis
AH Realty Trust reported a mixed third quarter. Core property operations improved, as retail same-store NOI on a cash basis increased 6.8% and office same-store NOI on a cash basis increased 5.2% compared with the quarter ended September 30, 2025. Leasing conditions were constructive: retail new lease spreads were 27.5% on a GAAP basis and 16.5% on a cash basis, while office new lease spreads were 22.8% on a GAAP basis and 23.3% on a cash basis. Stabilized leased occupancy was 95.0% in retail and 96.6% in office, although economic occupancy was lower at 91.0% and 89.6%, respectively.
Reported earnings were weaker year over year. Net loss available to common stockholders and OP Unitholders was $(6,622) (in thousands), or $(0.07) per diluted share, versus $(3,575) (in thousands), or $(0.04) per diluted share. FFO fell to $15,226 (in thousands) from $20,170 (in thousands), and FFO, As Adjusted declined to $15,319 (in thousands) from $16,968 (in thousands). Management attributed the FFO decline primarily to lower gross profit in real estate financing and general contracting and real estate services following portfolio dispositions, while the FFO, As Adjusted decline also reflected reduced termination fees and increased stock compensation and information technology costs.
Lower financing costs provided an important offset. Interest expense was $(13,141) (in thousands), compared with $(15,256) (in thousands), and the Company attributed a $2.1 million decrease in interest expense to $456.0 million of debt repayments in the second quarter, net of additional borrowings. At September 30, total debt outstanding was $1.0 billion and 61.4% of debt was fixed or economically hedged. Subsequent refinancing and swaps extended maturities and, following specified transactions, are expected by the Company to result in 100% fixed or economically hedged debt.
Capital allocation remained active. The Company repurchased 0.8 million shares for $4.9 million during the quarter and had repurchased 6.4 million shares for $38.2 million through September 30. It also sold The Everly and Solis Gainesville II on October 30 for $95.5 million and received $15.7 million from the October 29 redemption of Solis Kennesaw. The Company cited the share repurchases, debt paydowns, and continuing NOI growth as contributors to its higher outlook.
The Company raised full-year 2026 FFO, As Adjusted guidance to $0.57 to $0.59 per diluted share and guided to $56.3M to $58.3M of FFO, As Adjusted. Its revised assumptions call for retail same-store NOI cash growth of 2.50% - 3.50% and office growth of 3.00% - 4.00%. The key reported tension is that property-level same-store performance and financing actions are improving, while the reported quarter still reflects losses, lower FFO, portfolio exits, impairment, and economic occupancy below leased occupancy.
Management, verbatim
With the transformation of AH Realty Trust now substantially complete, we are a simpler, stronger company, and our third quarter results reflect that.
Shawn Tibbetts, Chairman, President and Chief Executive Officer
Our retail and mixed-use office portfolio continues to perform ahead of our expectations, with same store cash NOI up 6.8% in retail and 5.2% in office.
Shawn Tibbetts, Chairman, President and Chief Executive Officer
Given that performance and our visibility into the coming quarters, we are again raising our full-year guidance.
Shawn Tibbetts, Chairman, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior outlook was not provided, so no comparison of actual results with prior guidance is available.
- Gross margin was not reported.
- Operating cash flow was not reported.
- Investing cash flow was not reported.
- Financing cash flow was not reported.
- Free cash flow was not reported.
- A quarterly cash dividend declaration or payment was not reported.
- Segment revenue for retail and office was not separately reported; the Company reports segment NOI as its segment performance measure.
- Prior-quarter figures were not reported for the disclosed quarterly operating metrics.
- A reconciliation of forward-looking FFO, As Adjusted guidance to forward-looking GAAP net income or net income per diluted share was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.