GAAP Net Loss of $0.25 Per Diluted Share for the Second Quarter

FFO, As Adjusted of $0.14 Per Diluted Share for the Second Quarter

Raised Full Year 2026 FFO, As Adjusted Guidance to $0.53 to $0.57 Per Diluted Share

Office Same Store NOI Growth of 8.3% (Cash)

Positive Office New Lease Spreads of 20.5% (GAAP) and 9.5% (Cash)

Retail Same Store NOI Growth of 2.9% (Cash)

Positive Retail Renewal Spreads of 11.5% (GAAP) and 8.7% (Cash)

VIRGINIA BEACH, Va., Aug. 03, 2026 (GLOBE NEWSWIRE) -- AH Realty Trust (NYSE: AHRT) today announced its results for the quarter ended June 30, 2026 and provided an update on current events and earnings guidance.

Second Quarter and Recent Highlights:

   -- Raised full-year 2026 FFO, as Adjusted by 6% from original guidance to 
      $0.53 to $0.57 per diluted share, driven by continued NOI growth across 
      the retail and mixed-use office portfolio, sooner than anticipated debt 
      paydowns from closing the Multifamily Portfolio Sale First Closing sooner 
      than anticipated, and the accretive impact of the Company's share 
      repurchase activity. Portfolio performance was highlighted by: 
 
          -- Better than anticipated office leasing activity and spreads 
 
          -- Sooner 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 
 
          -- Lower than anticipated bad debt 
 
   -- As part of its ongoing governance enhancements supporting the Company's 
      strategic transformation, the Company advanced its board refreshment 
      process by electing Theodore Bigman and Lori Wittman as independent 
      directors at the Company's 2026 Annual Meeting of Stockholders (the "2026 
      Annual Meeting"); Following the 2026 Annual Meeting, Dennis Gartman and 
      George Allen retired from the board and each of Mr. Bigman and Ms. 
      Wittman were appointed to the board's Audit Committee. Additionally, F. 
      Blair Wimbush was appointed Chair of the board's Nominating and Corporate 
      Governance Committee and was appointed to the board's Compensation 
      Committee. 
 
   -- On May 20, 2026, the Company completed the sale of nine multifamily 
      properties and six of the retail and office components of the properties, 
      for aggregate gross proceeds of $485.0 million, generating a net gain on 
      sale of $18.8 million, after transaction costs and escrow amounts (the 
      "Multifamily Portfolio Sale First Closing"). Using these proceeds, the 
      Company repaid $265.5 million of secured debt and $195.0 million of 
      unsecured debt on the revolving credit facility, reducing our Net Debt to 
      Total Adjusted EBITDAre leverage metric to 7.1x. Two multifamily 
      properties remain under contract for $77.0 million. 

"This has been the most consequential and productive quarter in AH Realty Trust's history," said Shawn Tibbetts, Chairman, President and Chief Executive Officer. "In a matter of months, we fundamentally transformed this company, closing $485 million in multifamily sales, redeploying approximately $460 million of those proceeds directly to debt paydown, and expanding our share repurchase authorization to $100 million, actions that have rebuilt the foundation of this company. Most importantly, we have done so while operating our retail and mixed-use office portfolio with efficiency and excellence. Given the continued strength of our portfolio, the transformational actions we have completed, and our visibility into the coming quarters, we are raising our full-year 2026 FFO, As Adjusted guidance range to $0.53 to $0.57 per diluted share, underscoring the progress we are making to simplify AH Realty Trust into a more focused real estate platform centered on disciplined capital allocation and long term shareholder value creation."

Second Quarter and Recent Highlights Continued:

   -- On April 30, 2026, the Company fully realized $17.2 million for The 
      Allure at Edinburgh real estate financing investment and used the 
      proceeds to pay down debt. 
 
   -- On April 30, 2026, the Company completed the sale of the general 
      contracting and real estate services business for total economic 
      consideration of $2.4 million, further advancing our strategic plan to 
      simplify the business and focus on core retail and office operations. 
 
   -- During the quarter ended June 30, 2026, the Company repurchased 2.0 
      million shares of common stock for $12.4 million, bringing the total for 
      the year to 5.6 million for a total of $33.2 million. 
 
   -- Net loss attributable to common stockholders and OP Unitholders of $24.2 
      million, or $0.25 per diluted share, compared to net income attributable 
      to common stockholders and OP Unitholders of $3.9 million, or $0.04 per 
      diluted share, for the three months ended June 30, 2025. 
 
   -- Funds from operations attributable to common stockholders and OP 
      Unitholders ("FFO") of $15.4 million, or $0.16 per diluted share, 
      compared to $19.0 million, or $0.19 per diluted share, for the three 
      months ended June 30, 2025. See "Non-GAAP Financial Measures." 
 
   -- FFO, As Adjusted attributable to common stockholders and OP Unitholders 
      ("FFO, As Adjusted") of $14.1 million, or $0.14 per diluted share, 
      compared to $13.8 million, or $0.14 per diluted share, for the three 
      months ended June 30, 2025. See "Non-GAAP Financial Measures." 
 
   -- As of June 30, 2026, weighted average stabilized portfolio leased 
      occupancy was 95.9%. Retail leased occupancy increased 0.3% to 95.1% and 
      office leased occupancy increased 0.7% to 96.7%. 
 
   -- As of June 30, 2026, weighted average stabilized portfolio economic 
      occupancy was 90.7%. Retail economic occupancy decreased 1.6% to 90.9%, 
      and office economic occupancy increased 2.8% to 90.5%. 
 
   -- Executed 11 retail lease renewals and 6 new leases during the second 
      quarter for an aggregate of 107,736 net rentable square feet. Positive 
      spreads on both new leases and renewals: 
 
          -- New leasing spreads of 9.4% (GAAP) and 5.2% (Cash). 
 
          -- Renewal leasing spreads of 11.5% (GAAP) and 8.7% (Cash). 
 
   -- Executed 3 office lease renewals and 5 new leases during the second 
      quarter for an aggregate of $55,739 net rentable square feet. Positive 
      spreads on both new leases and renewals. 
 
          -- New leasing spreads of 20.5% (GAAP) and 9.5% (Cash). 
 
          -- Renewal leasing spreads of 40.2% (GAAP) and 21.6% (Cash). 
 
   -- Same Store Net Operating Income ("NOI") on a cash basis increased 2.9% 
      for the retail segment and 8.3% for the office segment compared to the 
      quarter ended June 30, 2025. 
 
   -- During the second quarter of 2026, unrealized losses on non-designated 
      interest rate derivatives that negatively affected FFO were $2.2 million. 
      As of June 30, 2026, the value of the Company's entire interest rate 
      derivative portfolio, net of unrealized losses, was $4.0 million. 

Financial Results

Net loss attributable to common stockholders and OP Unitholders for the second quarter of 2026 was $24.2 million compared to net income attributable to common stockholders and OP Unitholders of $3.9 million for the second quarter of 2025. The period-over-period change was driven by various non-recurring events in 2026. During the quarter, the Company recognized impairment of $20.9 million in our multifamily portfolio, including $8.7 million related to our Greenside Apartments asset and $12.2 million related to our Gainesville, GA assets, impairment of notes receivable (included in loss from discontinued operations) of $13.5 million taken in the second quarter of 2026 for the Solis Kennesaw real estate financing investment, due to updated estimates on the selling price, and $1.8 million of impairment related to certain development projects that management has determined will no longer be pursued. Additionally, the Company recognized a net gain of $18.8 million related to the nine multifamily, including the retail components of five properties and the office component of one property, included in the Multifamily Portfolio Sale First Closing, and repaid $265.5 million in mortgages as a result of the sale, resulting in a $2.7 million loss on extinguishment of debt. The Company also recognized a $2.2 million loss on the disposition of the general contracting and real estate services business, and a $3.0 million tax provision for the period as a result of the sale, primarily due to deferred tax assets that are no longer expected to be realized.

FFO attributable to common stockholders and OP Unitholders for the second quarter of 2026 was $15.4 million compared to $19.0 million for the second quarter of 2025. The period-over-period decrease in FFO was primarily due to the $2.7 million loss on extinguishment of debt, $1.3 million decrease in general contracting and real estate services gross profit as a result of the disposition and decreased volume, and $3.0 million tax provision for the period as a result of the disposition of the general contracting and real estate services business, primarily due to deferred tax assets that are no longer expected to be realized. FFO, As Adjusted attributable to common stockholders and OP Unitholders for the second quarter of 2026 increased to $14.1 million compared to $13.8 million for the second quarter of 2025. The year-over-year increase in FFO, As Adjusted was primarily due to decreased interest expense due to approximately $456.0 million of debt repayments (net of additional borrowings) as a result of the Multifamily Portfolio Sale First Closing and an increase in portfolio NOI as a result of Columbus Village II coming out of redevelopment and increased economic occupancy at The Interlock and Southern Post. These increases were partially offset by increased general and administrative expenses and