v3.26.1
Discontinued Operations (Tables)
 6 Months Ended
Jun. 30, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Disposal Groups, Including Discontinued Operations
Major assets and liabilities related to discontinued operations as of June 30, 2026 and December 31, 2025 are shown below (in thousands):
June 30, 2026
General Contracting and Real Estate Services
Multifamily Real Estate
Real Estate Financing
Total
ASSETS
Net real estate investments
$— $160,011 $— $160,011 
Cash and cash equivalents
— 7,839 — 7,839 
Restricted cash
— 5,499 — 5,499 
Accounts receivable, net— 111 — 111 
Notes receivable, net— — 14,380 14,380 
Acquired lease intangible assets, net
— 452 — 452 
Other assets
— 1,621 — 1,621 
Total assets of discontinued operations$— $175,533 $14,380 $189,913 
LIABILITIES
Indebtedness, net$— $76,288 $— $76,288 
Accounts payable and accrued liabilities— 4,372 — 4,372 
Other liabilities— 351 — 351 
Total liabilities of discontinued operations$— $81,011 $— $81,011 
December 31, 2025
General Contracting and Real Estate Services
Multifamily Real Estate
Real Estate Financing
Total
ASSETS
Net real estate investments$185 $616,645 $— $616,830 
Cash and cash equivalents1,802 8,408 — 10,210 
Restricted cash— 1,608 — 1,608 
Accounts receivable, net19 1,429 — 1,448 
Notes receivable, net— — 128,674 128,674 
Construction receivables, including retentions, net
19,337 — — 19,337 
Construction contract costs and estimated earnings in excess of billings3,666 — — 3,666 
Finance leases right-of-use assets, net— 9,934 — 9,934 
Acquired lease intangible assets, net— 1,198 — 1,198 
Other assets4,951 2,680 — 7,631 
Total assets of discontinued operations
$29,960 $641,902 $128,674 $800,536 
LIABILITIES
Indebtedness, net$— $242,171 $— $242,171 
Accounts payable and accrued liabilities
— 3,372 — 3,372 
Construction payables, including retentions
26,950 — — 26,950 
Billings in excess of construction contract costs and estimated earnings
3,474 — — 3,474 
Finance lease liabilities— 8,642 — 8,642 
Other liabilities
175 1,708 10 1,893 
Total liabilities of discontinued operations
$30,599 $255,893 $10 $286,502 
Summarized results of discontinued operations for the three and six months ended June 30, 2026 and 2025 are shown below (in thousands):
Three Months Ended June 30, 2026
General Contracting and Real Estate Services(1)
Multifamily Real Estate(1)
Real Estate Financing
Total
Rental revenues
$— $10,765 $— $10,765 
General contracting and real estate services revenues
5,328 — — 5,328 
Interest income (real estate financing)— — 4,962 4,962 
Rental expenses
— (3,596)— (3,596)
Real estate taxes
— (1,835)— (1,835)
General contracting and real estate services expenses
(5,219)— — (5,219)
Interest expense (real estate financing)(2)
— — (221)(221)
Depreciation and amortization, net
— (1,788)— (1,788)
General and administrative expenses(219)(74)— (293)
Impairment of real estate assets(3)
— (20,880)(13,490)(34,370)
(Loss) gain on disposition, net
(2,227)19,544 — 17,317 
Non-operating income and expenses(4)(5)
24 (5,499)154 (5,321)
Loss before taxes
(2,313)(3,363)(8,595)(14,271)
Income tax provision from discontinued operations
(2,996)— — (2,996)
Loss from discontinued operations, net of tax
$(5,309)$(3,363)$(8,595)$(17,267)
Less: Net (income) loss from discontinued operations attributable to noncontrolling interests
Investment entities(200)
Operating Partnership
4,045 
Net loss from discontinued operations attributable to AH Realty Trust, Inc.
$(13,422)
(1) The 2026 results of the general contracting and real estate services business reflect activity through April 30, 2026, the date on which the Company completed the sale of the business. The 2026 multifamily real estate results include results for all 13 properties classified within discontinued operations through May 20, 2026, the date on which the Company completed the First Closing of the Multifamily Portfolio Sale and sold nine of the 13 properties; results after that date reflect only the remaining properties included in discontinued operations.
(2) Interest expense within the real estate financing segment is allocated based on the average outstanding principal of notes receivable in the real estate financing portfolio, and the effective interest rate on the credit facility, the M&T term loan facility, and the TD term loan facility, each as defined in Note 8.
(3) Impairment of real estate assets recognized for the three months ended June 30, 2026 represents impairment of the note receivable secured by the Solis Kennesaw real estate financing investment of $13.5 million, and impairment of the multifamily properties The Everly and Solis Gainesville II of $12.2 million and Greenside Apartments of $8.7 million.
(4) Non-operating income and expenses includes interest income (excluding real estate financing), acquisition, development, and other pursuit costs, interest expense (excluding real estate financing), loss on extinguishment of debt, change in fair value of derivatives and other, unrealized credit loss release (provision), and other income (expense), net.
(5) Interest expense (excluding real estate financing segment) is allocated by first allocating secured debt to the relevant properties. Unsecured debt is then allocated using the total value of unencumbered income producing property, and allocated based on property classification.
Three Months Ended June 30, 2025
General Contracting and Real Estate Services
Multifamily Real Estate
Real Estate Financing
Total
Rental revenues
$— $14,427 $— $14,427 
General contracting and real estate services revenues
31,975 — — 31,975 
Interest income (real estate financing)— — 3,673 3,673 
Rental expenses
— (4,948)— (4,948)
Real estate taxes
— (1,534)— (1,534)
General contracting and real estate services expenses
(30,592)— — (30,592)
Interest expense (real estate financing)(1)
— — (1,927)(1,927)
Depreciation and amortization, net
(55)(5,036)— (5,091)
General and administrative expenses(1,703)(73)— (1,776)
Non-operating income and expenses(2)(3)
(97)(1,669)71 (1,695)
(Loss) income before taxes
(472)1,167 1,817 2,512 
Income tax benefit from discontinued operations
567 — — 567 
Income from discontinued operations, net of tax
$95 $1,167 $1,817 $3,079 
Less: Net (income) loss from discontinued operations attributable to noncontrolling interests
Investment entities
(67)
Operating Partnership
(682)
Net income from discontinued operations attributable to AH Realty Trust, Inc.
$2,330 
(1) Interest expense within the real estate financing segment is allocated based on the average outstanding principal of notes receivable in the real estate financing portfolio, and the effective interest rate on the credit facility, the M&T term loan facility, and the TD term loan facility, each as defined in Note 8.
(2) Non-operating income and expenses includes interest income (excluding real estate financing), acquisition, development, and other pursuit costs, interest expense (excluding real estate financing), gain on consolidation of real estate entities, change in fair value of derivatives and other, equity in loss of unconsolidated real estate entities, unrealized credit loss release (provision), and other income (expense), net.
(3) Interest expense (excluding real estate financing segment) is allocated by first allocating secured debt to the relevant properties. Unsecured debt is then allocated using the total value of unencumbered income producing property, and allocated based on property classification.
Six Months Ended June 30, 2026
General Contracting and Real Estate Services(1)
Multifamily Real Estate(1)
Real Estate FinancingTotal
Rental revenues
$— $27,508 $— $27,508 
General contracting and real estate services revenues
18,829 — — 18,829 
Interest income (real estate financing)— — 7,217 7,217 
Rental expenses
— (9,521)— (9,521)
Real estate taxes
— (3,364)— (3,364)
General contracting and real estate services expenses
(18,634)— — (18,634)
Interest expense (real estate financing)(2)
— — (1,760)(1,760)
Depreciation and amortization, net
(30)(7,973)— (8,003)
General and administrative expenses(625)(243)— (868)
Impairment of real estate assets(3)
— (20,880)(42,719)(63,599)
(Loss) gain on disposition, net
(2,227)19,544 — 17,317 
Non-operating income and expenses(4)(5)
138 (11,147)2,090 (8,919)
Loss before taxes
(2,549)(6,076)(35,172)(43,797)
Income tax provision from discontinued operations
(3,359)— — (3,359)
Loss from discontinued operations, net of tax
$(5,908)$(6,076)$(35,172)$(47,156)
Less: Net (income) loss from discontinued operations attributable to noncontrolling interests
Investment entities
(183)
Operating Partnership
10,542 
Net loss from discontinued operations attributable to AH Realty Trust, Inc.
$(36,797)
(1) The 2026 results of the general contracting and real estate services business reflect activity through April 30, 2026, the date on which the Company completed the sale of the business. The 2026 multifamily real estate results include results for all 13 properties classified within discontinued operations through May 20, 2026, the date on which the Company completed the First Closing of the Multifamily Portfolio Sale and sold nine of the 13 properties; results after that date reflect only the remaining properties included in discontinued operations.
(2) Interest expense within the real estate financing segment is allocated based on the average outstanding principal of notes receivable in the real estate financing portfolio, and the effective interest rate on the credit facility, the M&T term loan facility, and the TD term loan facility, each as defined in Note 8.
(3) Impairment of real estate assets recognized for the three months ended June 30, 2026 represents impairment of the note receivable secured by the Solis Kennesaw real estate financing investment of $13.5 million, and impairment of the multifamily assets The Everly and Solis Gainesville II of $12.2 million and Greenside Apartments of $8.7 million. Impairment of real estate assets recognized for the six months ended June 30, 2026 also includes impairment of notes receivable secured by the Solis Peachtree Corners, Solis North Creek, and Solis Kennesaw real estate financing investments of $4.4 million, $1.0 million, and $23.8 million, respectively.
(4) Non-operating income and expenses includes interest income (excluding real estate financing), acquisition, development, and other pursuit costs, interest expense (excluding real estate financing), loss on extinguishment of debt, change in fair value of derivatives and other, unrealized credit loss release (provision), and other income (expense), net.
(5) Interest expense (excluding real estate financing segment) is allocated by first allocating secured debt to the relevant properties. Unsecured debt is then allocated using the total value of unencumbered income producing property, and allocated based on property classification.
Six Months Ended June 30, 2025
General Contracting and Real Estate ServicesMultifamily Real EstateReal Estate FinancingTotal
Rental revenues
$— $28,046 $— $28,046 
General contracting and real estate services revenues
78,590 — — 78,590 
Interest income (real estate financing)— — 7,409 7,409 
Rental expenses
— (9,203)— (9,203)
Real estate taxes
— (2,755)— (2,755)
General contracting and real estate services expenses
(75,842)— — (75,842)
Interest expense (real estate financing)(1)
— — (3,641)(3,641)
Depreciation and amortization, net
(97)(9,180)— (9,277)
General and administrative expenses(1,826)(182)— (2,008)
Non-operating income and expenses(2)(3)
127 (6,325)(158)(6,356)
Income before taxes
952 401 3,610 4,963 
Income tax benefit from discontinued operations
377 — — 377 
Income from discontinued operations, net of tax
$1,329 $401 $3,610 $5,340 
Less: Net (income) loss from discontinued operations attributable to noncontrolling interests
Investment entities
73 
Operating Partnership
(1,167)
Net income from discontinued operations attributable to AH Realty Trust, Inc.
$4,246 
(1) Interest expense within the real estate financing segment is allocated based on the average outstanding principal of notes receivable in the real estate financing portfolio, and the effective interest rate on the credit facility, the M&T term loan facility, and the TD term loan facility, each as defined in Note 8.
(2) Non-operating income and expenses includes interest income (excluding real estate financing), acquisition, development, and other pursuit costs, interest expense (excluding real estate financing), gain on consolidation of real estate entities, change in fair value of derivatives and other, equity in loss of unconsolidated real estate entities, unrealized credit loss release (provision), and other income (expense), net.
(3) Interest expense (excluding real estate financing segment) is allocated by first allocating secured debt to the relevant properties. Unsecured debt is then allocated using the total value of unencumbered income producing property, and allocated based on property classification.
The following properties were included in this disposition:
Properties in Continuing Operations(1)
SegmentLocationOwnership Interest
Allied | Harbor Point Retail*
Retail
Baltimore, Maryland
100%
Chronicle Mill Retail*
RetailBelmont, North Carolina100%
Chronicle Mill Office*
Office
Belmont, North Carolina100%
Liberty Retail
Retail
Newport News, Virginia100%
Point Street Retail*RetailBaltimore, Maryland100%
The Edison Retail
Retail
Richmond, Virginia100%
Properties in Discontinued Operations(1)
SegmentLocationOwnership Interest
1305 Dock Street*MultifamilyBaltimore, Maryland90%
1405 Point Street*
MultifamilyBaltimore, Maryland100%
Allied | Harbor Point*
Multifamily
Baltimore, Maryland
100%
Chronicle Mill Apartments*
MultifamilyBelmont, North Carolina100%
Chandler Residences*MultifamilyRoswell, Georgia100%
Encore Apartments*MultifamilyVirginia Beach, Virginia100%
Liberty Apartments
MultifamilyNewport News, Virginia100%
The Cosmopolitan*MultifamilyVirginia Beach, Virginia100%
The Edison
MultifamilyRichmond, Virginia100%
*Represents a property located within a mixed-use community.
(1) Properties in discontinued operations represent multifamily assets that are not being retained as a result of the strategic repositioning announced on February 16, 2026. Properties in continuing operations are retail or office assets related to the multifamily assets that are being sold in conjunction with those operations.
As a result, the following properties are classified as held for sale as of June 30, 2026:
Properties in Discontinued Operations(1)
SegmentLocationOwnership Interest
Greenside ApartmentsMultifamilyCharlotte, North Carolina100%
Premier Apartments*MultifamilyVirginia Beach, Virginia100%
________________________________________
*Represents a property located within a mixed-use community.
(1) Assets classified as properties in discontinued operations in the table above are both subject to a single purchase and sale agreement entered into during the reporting period. Properties in discontinued operations represent multifamily assets that are not being retained as a result of the strategic repositioning announced on February 16, 2026. All of these assets have met the criteria for held for sale classification under ASC 360, as management has committed to a plan to sell, the assets are available for immediate sale in their present condition, and the sale is expected to be completed within one year.
The assets included in this purchase and sale agreement are the following as of June 30, 2026:
Properties in Discontinued Operations(1)
SegmentLocationOwnership Interest
The Everly
MultifamilyGainesville, Georgia100 %
Solis Gainesville II
MultifamilyGainesville, Georgia100 %

________________________________________
(1) Properties in discontinued operations represent multifamily assets that are not being retained as a result of the strategic repositioning announced on February 16, 2026. All of these assets have met the criteria for held for sale classification under ASC 360, as management has committed to a plan to sell, the assets are available for immediate sale in their present condition, and the sale is expected to be completed within one year.
Schedule of Balances and Changes of Construction Contracts
The following table summarizes the changes to the balances in the Company’s construction contract costs and estimated earnings in excess of billings account and the billings in excess of construction contract costs and estimated earnings account for the six months ended June 30, 2026 and 2025 (in thousands):
Six Months Ended 
June 30, 2026		Six Months Ended 
June 30, 2025
Construction contract costs and estimated earnings in excess of billingsBillings in excess of construction contract costs and estimated earningsConstruction contract costs and estimated earnings in excess of billingsBillings in excess of construction contract costs and estimated earnings
Beginning balance$3,666 $3,474 $6 $5,871 
Revenue recognized that was included in the balance at the beginning of the period— (3,474)— (5,871)
Increases due to billings, excluding amounts recognized as revenue during the period
— 3,376 — 6,990 
Transferred to receivables(3,667)— (6)— 
Construction contract costs and estimated earnings not billed during the period273 — 2,990 — 
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion— (14)— (326)
Disposed of as a result of the general contracting and real estate services disposition(272)(3,362)$— $— 
Ending balance$— $— $2,990 $6,664 
The Company’s balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) as of June 30, 2026 and 2025 were as follows (in thousands):
Three Months Ended June 30,
20262025
Beginning backlog$55,972 $80,423 
New contracts/change orders(372)57,909 
Work performed(5,321)(31,769)
Contracts disposed as a result of the general contracting disposition
(50,279)— 
Ending backlog$— $106,563 
Schedule of Net Position of Cost and Estimated Earning on Uncompleted Contracts Table
The Company’s net position on uncompleted construction contracts comprised the following as of June 30, 2026 and December 31, 2025 (in thousands):
June 30, 2026December 31, 2025
Costs incurred on uncompleted construction contracts$798,767 $958,225 
Estimated earnings22,125 32,338 
Billings(823,982)(990,371)
Disposed of as a result of the general contracting and real estate services disposition
3,090 — 
Net position$— $192 
Construction contract costs and estimated earnings in excess of billings$— $3,666 
Billings in excess of construction contract costs and estimated earnings— (3,474)
Net position$— $192 
Schedule of Notes Receivable Outstanding
The Company had the following notes receivable outstanding as of June 30, 2026 and December 31, 2025 ($ in thousands):
Outstanding loan amount
June 30,
2026		December 31,
2025
Real Estate Financing Project
Maturity DatePrincipal
Accrued interest and fees(1)
Total loan amount(2)
Total loan amount(2)
Maximum principal commitmentInterest rateInterest compounding
Solis Kennesaw5/25/202714,380 — 14,380 50,437 37,870 14.0 %(3)Annually
Solis Peachtree Corners(4)
10/31/2027— — — 38,434 — 9.0 %(3)Annually
The Allure at Edinburgh(5)
1/16/2028— — — 11,678 — 10.0 %(6)None
Solis North Creek(4)
8/8/2030— — — 30,039 — 12.0 %(3)Annually
Total preferred equity$14,380 $— $14,380 $130,588 $37,870 
Allowance for credit losses (7)
— 

(1,914)
Total notes receivable$14,380 $128,674 
________________________________________
(1) Reflects accrued interest and unused commitment fees, net of discounts due to unamortized equity fees.
(2) Outstanding loan amounts include any accrued and unpaid interest, and accrued fees, as applicable, net of impairment.
(3) The interest rate varies over the life of the loans and the Company also earns an unused commitment fee on amounts not drawn on the loans.
(4) On March 27, 2026, the Company sold these investments for total proceeds of $63.8 million.
(5) This note receivable was redeemed on April 30, 2026. Refer to Note 6 for further details.
(6) The interest rate varies over the life of the loan.
(7) The amount as of December 31, 2025 excludes less than $0.1 million of CECL allowance that relates to unfunded commitments, which was recorded as a liability in other liabilities in the consolidated balance sheet.
Schedule of Interest Income The Company recognized interest income for the three and six months ended June 30, 2026 and 2025 as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
Real Estate Financing Project
2026202520262025
Solis Gainesville II(1)
$— $394 
(2)(3)
$— $784 
(2)(3)
Solis Kennesaw— 1,291 
(2)(3)
1,217 
(2)
2,721 
(2)(3)
Solis Peachtree Corners(4)
— 1,233 
(2)(3)
465 
(2)
2,453 
(2)(3)
The Allure at Edinburgh(5)
4,962 230 5,240 499 
Solis North Creek(4)
— 524 
(3)
294 951 
(3)
Total interest income4,962 3,672 7,216 7,408 
________________________________________
(1) This note receivable was redeemed on December 10, 2025.
(2) Includes recognition of interest income related to fee amortization.
(3) Includes recognition of unused commitment fees.
(4) On March 27, 2026, the Company sold these investments for total proceeds of $63.8 million.
(5) This note receivable was redeemed on April 30, 2026. Refer to Note 6 for further details.
Schedule Allowance for Credit Losses on Financing Receivables Changes in the allowance for the six months ended June 30, 2026 and 2025 were as follows (in thousands):
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
FundedUnfundedTotalFundedUnfundedTotal
Beginning balance$1,914 $10 $1,924 $1,852 $509 $2,361 
Unrealized credit loss provision (release)174 1 175 338 (284)54 
Release due to disposition(1,204)(7)(1,211)— — — 
Reductions due to intent to sell(710)(3)(713)— — — 
Release due to redemption(174)(1)(175)(210)(32)(242)
Ending balance$— $— $— $1,980 $193 $2,173