AH Realty Trust Cuts Leverage to 5.5–6.5 Times After Sales and Refinancing
Key Facts
AH Realty Trust said on November 2, 2026, that it completed several transactions during the previous week as part of a strategic shift launched early in the year to simplify the company and strengthen its balance sheet. The steps included selling two residential properties in Gainesville, Georgia, exiting the company’s last mortgage financing investment, restructuring credit facilities and refinancing a building loan. The company said proceeds from the dispositions were used to reduce debt, returning leverage to its target range of 5.5 to 6.5 times adjusted net debt to EBITDAre. It added that it has no significant debt maturities until 2029. The transactions show progress in the strategic reset, which focuses on disposing of selected assets and businesses and directing proceeds toward debt reduction, without indicating that the debt restructuring is complete.
The company sold The Everly and Solis Gainesville II, which together comprise 407 units in Gainesville. In parallel, its partner completed the sale of Solis Kennesaw, ending AH Realty Trust’s last investment in mortgage financing. Chief Executive Sean Tibbets said the previous week’s transactions “underscore the significant progress we have made in executing this commitment.” In its 2025 annual report, the company said the reset aims to exit the multifamily apartment sector, sell its construction business and investments in the mortgage financing platform, and direct proceeds toward debt repayment. With the sale of the Gainesville properties, the company said it had completed the sale of 11 of the 13 multifamily properties it had previously identified for sale, after selling 9 properties to affiliates of Harbor Group International in May 2026.
On financing, the company restructured its unsecured credit facility to include a $150 million revolving facility and two term loans of $200 million each, maturing in 2030 and 2031. It also closed a new 7-year, $100 million term loan maturing in 2033. The company refinanced a $121.8 million loan on the Constellation Energy building at Harbor Point, extending its maturity from November 2026 to October 2029. As a result of the transactions, the weighted average debt maturity rose to 4.4 years from two years, according to the company. It also said that debt reduction funded by disposition proceeds returned leverage to its target range, and that it faces no significant maturities before 2029.
The steps follow the company’s debt reduction after the first phase of its portfolio sale; its second-quarter results said it repaid $265.5 million in mortgages after the sale closed. Leverage was 7.1 times in the second quarter of 2026, according to the investor presentation, before the company announced its return to the target range. At the end of that quarter, total outstanding debt was $1 billion, and the company said 100% of it was fixed-rate or economically hedged after accounting for interest rate swaps. Across stabilized assets, weighted occupancy was 95.9% on June 30, 2026, while retail occupancy was 95.1% and office occupancy was 96.7%. These metrics provide context for the exit from the apartment sector as the company continues to own other operating assets.
The latest reported financial performance showed a net loss of $24.2 million in the second quarter of 2026, compared with net income of $3.9 million in the second quarter of 2025. Adjusted FFO, meanwhile, rose to $14.1 million from $13.8 million year over year, while remaining at $0.14 per diluted share in both periods. In August, the company raised its 2026 adjusted FFO guidance to a range of $0.53–$0.57 per diluted share, up 6% from its initial guidance, citing growth in net operating income, earlier debt repayment and the impact of share repurchases. The November 2 transaction announcement does not directly link these transactions to second-quarter results or the guidance update. AHRT shares closed at $6.08 on October 30, according to EL7 data.
The sales of Greenside and Premier remain in progress under two agreements with affiliates of Harbor Group International. AH Realty Trust expects the Greenside transaction to close in November 2026, with the Premier sale expected to close in the second quarter of 2027. Second-quarter results recorded impairment losses of $20.9 million in the apartment portfolio, including $8.7 million for Greenside and $12.2 million for the Gainesville assets. The company is scheduled to report results for the quarter ended September 30 on November 2, 2026, followed by a management conference call to discuss them on the morning of November 3. The two pending transactions are the next milestones in the company’s plan to sell the multifamily properties it has identified for disposition.