ARMADA HOFFLER PROPERTIES, INC. Management’s Discussion and Analysis of

References to "we," "our," "us," and "our company" refer to Armada Hoffler
Properties, Inc., a Maryland corporation, together with our consolidated
subsidiaries, including Armada Hoffler, L.P., a Virginia limited partnership
(the "Operating Partnership"), of which we are the sole general partner. The
following discussion should be read in conjunction with the financial statements
and notes thereto appearing elsewhere in this report.

Forward-Looking Statements

This report contains forward-looking statements within the meaning of the
federal securities laws. We caution investors that any forward-looking
statements presented in this report, or which management may make orally or in
writing from time to time, are based on beliefs and assumptions made by, and
information currently available to, management. When used, the words
"anticipate," "believe," "expect," "intend," "may," "might," "plan," "estimate,"
"project," "should," "will," "result," and similar expressions, which do not
relate solely to historical matters, are intended to identify forward-looking
statements. Such statements are subject to risks, uncertainties, and assumptions
and are not guarantees of future performance, which may be affected by known and
unknown risks, trends, uncertainties, and factors that are beyond our control.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those anticipated, estimated, or projected. We caution you that while
forward-looking statements reflect our good faith beliefs when we make them,
they are not guarantees of future performance and are impacted by actual events
when they occur after we make such statements. We expressly disclaim any
responsibility to update forward-looking statements, whether as a result of new
information, future events, or otherwise, except as required by law.
Accordingly, investors should use caution in relying on past forward-looking
statements, which are based on results and trends at the time they are made, to
anticipate future results or trends.

Forward-looking statements involve numerous risks and uncertainties and you
should not rely on them as predictions of future events. Forward-looking
statements depend on assumptions, data, or methods which may be incorrect or
imprecise, and we may not be able to realize them. We do not guarantee that the
transactions and events described will happen as described (or that they will
happen at all). The following factors, among others, could cause actual results
and future events to differ materially from those set forth or contemplated in
the forward-looking statements:

•adverse economic or real estate developments, either nationally or in the
markets in which our properties are located, including as a result of the
COVID-19 pandemic;

?our ability to commence or continue construction and development projects on
the timeframes and terms currently anticipated;

•our failure to generate sufficient cash flows to service our outstanding
indebtedness;

•defaults on, early terminations of, or non-renewal of leases by tenants,
including significant tenants;

•bankruptcy or insolvency of a significant tenant or a substantial number of
smaller tenants;

•the inability of one or more mezzanine loan borrowers to repay mezzanine loans
in accordance with their contractual terms;

•difficulties in identifying or completing development, acquisition, or
disposition opportunities;

•our failure to successfully operate developed and acquired properties;

•our failure to generate income in our general contracting and real estate
services segment in amounts that we anticipate;

•fluctuations in interest rates and increased operating costs;

•our failure to obtain necessary outside financing on favorable terms or at
all;

•our inability to extend the maturity of or refinance existing debt or comply
with the financial covenants in the agreements that govern our existing debt;

•financial market fluctuations;

•risks that affect the general retail environment or the market for office
properties or multifamily units;

•the competitive environment in which we operate;

•decreased rental rates or increased vacancy rates;

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•conflicts of interests with our officers and directors;

•lack or insufficient amounts of insurance;

•environmental uncertainties and risks related to adverse weather conditions and
natural disasters;

•other factors affecting the real estate industry generally;

•our failure to maintain our qualification as a real estate investment trust
(“REIT”) for U.S. federal…