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1. Company Snapshot

1.a. Company Description


Founded in 1979 by Daniel A.Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes.">

Armada Hoffler Properties, Inc.(NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States.In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients.


Founded in 1979 by Daniel A.Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes.

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1.b. Last Insights on AHH

Armada Hoffler Properties' recent performance was negatively driven by weak earnings, as reflected in its Q4 2024 FFO of $0.27 per share, which matched estimates but declined from $0.31 per share a year ago. The company's GAAP net income also fell short, coming in at $0.26 per diluted share for the fourth quarter. Additionally, Armada Hoffler's 2025 full-year normalized FFO guidance range of $1.00 to $1.10 per diluted share indicates a cautious outlook, which may be weighing on investor sentiment.

1.c. Company Highlights

2. Armada Hoffler's Q3 2025 Earnings: A Strong Performance

Armada Hoffler reported a robust financial performance in the third quarter of 2025, with normalized FFO attributable to common shareholders coming in at $29.6 million or $0.29 per diluted share, slightly above expectations of $0.26 per diluted share. The company's diversified portfolio continues to demonstrate meaningful strength, particularly across its retail and office holdings, with leasing pipelines remaining active and collections and occupancy levels remaining resilient. The results underscore the quality of Armada Hoffler's assets and the consistency of its execution, with the retail portfolio being 96% occupied and the office portfolio being 96.5% occupied.

Publication Date: Nov -12

📋 Highlights

Segment Performance

The retail segment continues to demonstrate strength and resilience, supported by a focused strategy of owning properties located within submarkets where Armada Hoffler can leverage or create a competitive advantage. Foot traffic across the company's centers, particularly at mixed-use destinations like Harbor Point and Southern Post, rose 13% compared to the prior quarter. The office portfolio is also performing well, with demand continuing to favor office properties with walkable, amenity-rich, mixed-use environments. The multifamily portfolio continues to demonstrate resilience, supported by healthy leasing fundamentals and proactive management.

Valuation and Outlook

With Armada Hoffler's P/E Ratio standing at 19.28 and the Dividend Yield at 9.72%, the market is pricing in a certain level of growth and return. Analysts estimate next year's revenue growth at 6.3%, which may justify the current valuation to some extent. As per Shawn Tibbetts, "We're on a journey to get into more pure fixed-rate debt," indicating a focus on reducing reliance on derivatives and managing debt effectively. The company's current valuation metrics, including an EV/EBITDA of 11.01 and a P/S Ratio of 1.13, suggest that the market is factoring in a moderate growth trajectory.

Guidance and Capital Allocation

Armada Hoffler has narrowed its full-year normalized FFO guidance range to $1.03 to $1.07 per diluted share, indicating a positive outlook. The company plans to continue expanding relationships with institutional credit investors, supporting long-term growth and maintaining financial optionality. With a strong financial position and a disciplined capital structure, Armada Hoffler is well-positioned to act on attractive opportunities while preserving balance sheet strength and stability.

3. NewsRoom

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Commonwealth of Pennsylvania Public School Empls Retrmt SYS Sells 23,946 Shares of Armada Hoffler Properties, Inc. $AHH

Nov -29

Source: defenseworld.net

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3 Big Stock Discounts This Black Friday

Nov -28

Source: seekingalpha.com

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Armada Hoffler Properties, Inc. (NYSE:AHH) Receives $8.13 Consensus Target Price from Brokerages

Nov -25

Source: defenseworld.net

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Armada Hoffler Announces Quarterly Dividend

Nov -21

Source: globenewswire.com

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Armada Hoffler Properties: Why I'm Doubling Down On This Undervalued REIT

Nov -20

Source: seekingalpha.com

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Armada Hoffler Properties: Once Bitten, Twice Shy. Avoiding The High Yield

Nov -06

Source: seekingalpha.com

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Armada Hoffler Properties, Inc. (AHH) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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Armada Hoffler Properties (AHH) Surpasses Q3 FFO and Revenue Estimates

Nov -04

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.14%)

6. Segments

General Contracting and Real Estate Services

Expected Growth: 6.92%

Armada Hoffler Properties' General Contracting and Real Estate Services segment growth of 6.92% is driven by increasing demand for construction services, strategic partnerships, and expansion into new markets. Additionally, the company's focus on mixed-use developments, multifamily projects, and government contracts contributes to its growth momentum.

Retail Real Estate

Expected Growth: 4.65%

Armada Hoffler Properties' Retail Real Estate segment growth of 4.65% is driven by increasing demand for experiential retail, strategic acquisitions, and redevelopment of existing properties. Additionally, the company's focus on grocery-anchored centers and mixed-use developments in high-growth markets contributes to its growth momentum.

Office Real Estate

Expected Growth: 4.83%

Armada Hoffler Properties' 4.83% office real estate growth is driven by increasing demand for Class-A office spaces in coastal markets, particularly in Virginia Beach and Hampton Roads. Strong job market growth, fueled by defense and technology industries, supports rising rental rates and occupancy. Additionally, the company's strategic acquisitions and development pipeline contribute to its growth momentum.

Multifamily Residential Real Estate

Expected Growth: 4.65%

Armada Hoffler Properties, Inc.'s multifamily residential real estate segment growth of 4.65% is driven by increasing demand for rental housing, particularly among millennials and Gen Z, coupled with a shortage of affordable housing supply. Additionally, the company's strategic focus on acquiring and developing properties in high-growth markets, such as the Mid-Atlantic and Southeast regions, contributes to its growth momentum.

Real Estate Financing

Expected Growth: 7.53%

Armada Hoffler Properties, Inc.'s 7.53% growth in Real Estate Financing is driven by increasing demand for commercial properties, strategic acquisitions, and expansion into high-growth markets. Additionally, the company's diversified portfolio, strong balance sheet, and access to capital markets have enabled it to capitalize on opportunities, fueling growth.

Reconciling Items

Expected Growth: 4.65%

Armada Hoffler Properties, Inc.'s 4.65% growth is driven by increasing demand for industrial and office spaces, strategic acquisitions, and strong property management. Additionally, the company's focus on high-growth markets, such as Virginia and Maryland, contributes to its growth. Furthermore, the company's ability to maintain a high occupancy rate and increase rental rates also supports its growth momentum.

7. Detailed Products

Office Properties

Armada Hoffler Properties, Inc. owns and operates a diverse portfolio of office properties, including Class A and Class B office buildings, offering a range of spaces for businesses of all sizes.

Retail Properties

The company's retail portfolio consists of grocery-anchored shopping centers, power centers, and mixed-use developments, providing a range of retail spaces for national and local tenants.

Multifamily Properties

Armada Hoffler Properties, Inc. develops and operates multifamily communities, offering a range of amenities and services to residents.

Land Development

The company acquires and develops land for future development, including residential, commercial, and mixed-use projects.

Construction Services

Armada Hoffler Properties, Inc. offers general contracting and construction management services for third-party clients, as well as for its own development projects.

8. Armada Hoffler Properties, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Armada Hoffler Properties, Inc. is medium due to the availability of alternative investment options in the real estate industry.

Bargaining Power Of Customers

The bargaining power of customers for Armada Hoffler Properties, Inc. is low due to the company's diversified portfolio and strong relationships with tenants.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Armada Hoffler Properties, Inc. is medium due to the company's dependence on a few large suppliers for construction materials and services.

Threat Of New Entrants

The threat of new entrants for Armada Hoffler Properties, Inc. is low due to the high barriers to entry in the real estate industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Armada Hoffler Properties, Inc. is high due to the competitive nature of the real estate industry, with many established players vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 70.98%
Debt Cost 4.09%
Equity Weight 29.02%
Equity Cost 8.88%
WACC 5.48%
Leverage 244.58%

11. Quality Control: Armada Hoffler Properties, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Modiv

A-Score: 7.1/10

Value: 6.6

Growth: 7.8

Quality: 4.7

Yield: 10.0

Momentum: 6.0

Volatility: 7.7

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Gladstone Commercial

A-Score: 6.4/10

Value: 5.3

Growth: 4.7

Quality: 6.9

Yield: 10.0

Momentum: 2.0

Volatility: 9.7

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BrightSpire Capital

A-Score: 6.3/10

Value: 6.8

Growth: 4.6

Quality: 3.9

Yield: 10.0

Momentum: 5.0

Volatility: 7.7

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Alexander & Baldwin

A-Score: 6.2/10

Value: 4.3

Growth: 3.7

Quality: 6.3

Yield: 8.0

Momentum: 5.0

Volatility: 10.0

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Armada Hoffler Properties

A-Score: 6.0/10

Value: 6.5

Growth: 5.7

Quality: 4.7

Yield: 10.0

Momentum: 1.0

Volatility: 8.3

1-Year Total Return ->

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Presidio Property Trust

A-Score: 2.8/10

Value: 5.6

Growth: 0.8

Quality: 2.6

Yield: 5.0

Momentum: 3.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.46$

Current Price

6.46$

Potential

-0.00%

Expected Cash-Flows