Armada Hoffler (AHH) announced strategic steps in reducing exposure to variable rate debt as the company continues to execute its balance sheet management strategy. Since the end of the Q4 the company has executed a $150M floating-to-fixed rate swap, effective January 2, with a 2-year term, and a swap fixed rate of 2.5%. The Company bought down the rate for a total cost of $4.6M. With this trade, Armada Hoffler is 100% hedged on its variable rate debt exposure, which the company expects to maintain into the Q4, based on current variable rate debt levels and existing derivative expirations. The company has repaid $45.6M of secured variable-rate debt with a weighted average effective interest rate of 6.80% and refinanced its Premier mixed-use property for greater loan proceeds at a lower fixed rate in November 2024. The new $29.4M agency loan is fixed at 5.53% interest-only through maturity in December 2029. The previous $23.4M variable-rate loan had a stated rate of SOFR plus 1.55% and an effective rate of 6.4%, paid off in September 2024. The company has also paid down its SOFR referenced revolving credit facility by $19.0 million through December 31, 2024.
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