AH Realty Trust (AHRT) Q1 2026 earnings summary

Executive summary

• Completed a strategic transformation by exiting multifamily, construction, and real estate financing businesses, rebranding as AH Realty Trust, and focusing on retail and mixed-use office real estate.

• Entered agreements to sell 11 multifamily assets for $562M, completed construction business sale for $2.4M, and advanced wind-down of real estate financing platform.

• Reported a net loss attributable to common stockholders and OP unitholders of $33.3M ($0.33/share) for Q1 2026, primarily due to a $29.2M impairment on notes receivable.

• Repurchased 4.2M–4.3M shares for $24.1M through April 2, 2026, and nominated new independent directors.

• Raised full-year 2026 FFO as adjusted guidance, reflecting strong operating results and transformation progress.

Financial highlights

• Q1 2026 FFO attributable to common shareholders: $20.6M ($0.20/share); FFO as adjusted: $15.1M ($0.15/share), both above expectations and up year-over-year.

• Net operating income for Q1: $34.7M, up 1.8% year-over-year and $700,000 ahead of guidance.

• Rental revenues increased to $52.3M from $50.2M year-over-year.

• AFFO: $19.9M ($0.19/share), with a 72% payout ratio.

• Retail same-store NOI up 2.2% and office same-store NOI up 0.7% year-over-year.

Outlook and guidance

• Raised full-year 2026 FFO as adjusted guidance to $0.51–$0.55 per diluted share.

• Projected 2026 retail NOI of $68.5M–$70.0M and office NOI of $58.5M–$60.0M.

• No acquisitions planned for 2026; capital to be used for share repurchases and debt reduction.

• Retail and office economic occupancy expected to increase in the second half of 2026 due to rent commencements.

• Retail same-store NOI cash growth forecasted at 1.5% and office at 1.95%.