Key Highlights

  • FFO as adjusted was USD 0.16 per diluted share, while the GAAP net loss was USD 0.07 per diluted share.
  • Full-year FFO as adjusted guidance rose to USD 0.57 to USD 0.59, 11.5% above the original guidance.
  • Retail same store cash NOI grew 6.8% and office same store cash NOI grew 5.2% in the quarter.
  • Office new Lease spreads were 22.8% on a GAAP basis and 23.3% on a cash basis.

Quarter and Guidance

AH Realty Trust (NYSE:AHRT) reported third-quarter 2026 FFO as adjusted of USD 0.16 per diluted share and a GAAP net loss of USD 0.07 per diluted share. The company raised its full-year 2026 FFO as adjusted guidance by 11.5% from original guidance to USD 0.57 to USD 0.59, citing continued NOI growth across its retail and mixed-use office portfolio, Debt paydowns from closing the first closing of its multifamily portfolio sale sooner than anticipated, and the accretive effect of share repurchases.

Chairman, president and chief executive Shawn Tibbetts said the transformation of the company is substantially complete and that the portfolio is performing ahead of expectations.

Portfolio Performance

Office same store NOI grew 5.2% on a cash basis, with new lease spreads of 22.8% GAAP and 23.3% cash. Retail same store NOI grew 6.8% on a cash basis, with renewal spreads of 11.6% GAAP and 5.8% cash. Management cited better office leasing activity and spreads, sooner retail tenant openings and rent commencements, higher percentage rent from retail tenants, Operating Expense savings from successful real estate tax appeals and lower bad debt.

Balance Sheet Actions

On October 28, 2026, the company refinanced the Loan on the Constellation Energy Building, extending Maturity to October 28, 2029, and recast its Credit facilities. The recast consists of a USD 150.0 million revolving credit Facility with a five-year maturity, a USD 200.0 million term loan with a four-year maturity and a USD 200.0 million term loan with a five-year maturity, plus a new USD 100.0 million term loan with a seven-year term. An accordion feature lets total commitments increase to USD 1.0 billion, and terms and covenants remain materially similar. The company reduced the revolver's capacity to align with its anticipated Business and Liquidity needs.

Debt has been reduced by nearly USD 500 million this year, and the chief executive said there are no material maturities until 2029. On October 30, 2026, the company sold The Everly and Solis Gainesville II multifamily Assets for USD 95.5 million, and on October 29 the Solis Kennesaw real estate financing Investment was fully redeemed for USD 15.7 million.

During the quarter the company repurchased 0.8 million shares for USD 4.9 million at an average cost of USD 6.25 per share, and has repurchased 6.4 million shares year to date.

Signposts for 2027

Management said it has visibility into the coming quarters, that meaningful upside is already embedded in the portfolio, and that its focus entering 2027 is driving organic NOI growth from the portfolio it owns today. Items to track include office leasing spreads, retail tenant openings, remaining multifamily sale closings and repurchase activity.