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Armada Hoffler Properties (AHH)
NYSE:AHH
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Armada Hoffler Properties
(NYSE:AHH)
68Neutral
Armada Hoffler Properties (AHH) vs. S&P 500 (SPY)
Market Cap
$779.15M
Dividend Yield10.66%
Average Volume (3M)1.06M
Price to Earnings (P/E)32.3
Beta (1Y)0.95
Revenue Growth6.17%
EPS GrowthN/A
CountryUS
Employees148
SectorReal Estate
Sector Strength71
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.25
Shares Outstanding79,918,740
10 Day Avg. Volume1,646,419
30 Day Avg. Volume1,056,705
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.87
Price to Cash Flow (P/CF)7.40
P/FCF Ratio5.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.13Price Target Upside44.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Armada Hoffler Properties Business Overview & Revenue Model
Company DescriptionArmada Hoffler Properties, Inc. (AHH) is a vertically integrated, self-managed real estate investment trust (REIT) that specializes in developing, building, acquiring, and managing high-quality office, retail, and multifamily properties in the Mid-Atlantic and Southeastern United States. Founded in 1979 and headquartered in Virginia Beach, Virginia, the company has established a diversified portfolio that includes mixed-use developments and provides a comprehensive range of real estate services.
How the Company Makes MoneyArmada Hoffler Properties generates revenue through multiple streams primarily consisting of rental income from its developed and acquired properties, which includes office, retail, and multifamily residential spaces. The company also earns income from property development services and construction contracts, leveraging its expertise in these areas to create additional value. Armada Hoffler's integrated approach allows it to oversee projects from conception to completion, capturing earnings at various stages of the property lifecycle. Additionally, strategic partnerships and joint ventures further support its revenue by enabling collaboration on large-scale projects, enhancing its market presence and financial outcomes.
Armada Hoffler Properties Financial Statement Overview
Summary
Armada Hoffler Properties demonstrates strong financial health with significant revenue growth, effective cost management, and a solid balance sheet. The absence of debt enhances financial flexibility, and consistent cash flow supports operational stability, although there's room for improvement in ROE.Income Statement
Armada Hoffler Properties shows strong financial performance with significant revenue growth of 6.22% in the TTM period compared to the previous year. The gross profit margin and EBIT margin are healthy at 33.06% and 17.68%, respectively, indicating effective cost management and operational efficiency. Net profit has also grown substantially, enhancing the net profit margin to 5.41%, compared to 1.24% last year, reflecting improved profitability.85
Very Positive
Balance Sheet
The company demonstrates strong financial stability with a Debt-to-Equity ratio of 0, as it reports zero total debt in the TTM period, which is a significant improvement from the prior year. The equity ratio is solid at 35.39%, pointing to a robust capital structure. However, the return on equity has decreased to 4.31% from the previous year's 1.45%, indicating room for improvement in generating returns for shareholders.78
Positive
Cash Flow
Cash flow analysis reveals a stable situation with a free cash flow of $91.2 million in the TTM period. The Operating Cash Flow to Net Income ratio is strong at 2.38, suggesting effective cash generation from operations relative to net income. Although the free cash flow growth rate is negative due to slight decreases in operating cash flow, the company's free cash flow remains ample, showcasing solid liquidity.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 708.47M | 667.16M | 454.15M | 284.08M | 383.63M | Gross Profit |
| 203.45M | 187.85M | 154.20M | 127.63M | 117.07M | EBIT |
| 106.54M | 73.59M | 81.15M | 62.70M | 48.74M | EBITDA |
| 211.81M | 164.23M | 213.57M | 132.57M | 128.27M | Net Income Common Stockholders |
| 35.65M | 8.29M | 74.75M | 21.89M | 29.15M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 70.64M | 27.92M | 48.14M | 35.25M | 41.00M | Total Assets |
| 2.51B | 2.56B | 2.24B | 1.94B | 1.92B | Total Debt |
| 1.42B | 1.52B | 1.21B | 995.36M | 1.02B | Net Debt |
| 1.35B | 1.49B | 1.17B | 960.12M | 982.46M | Total Liabilities |
| 1.62B | 1.76B | 1.34B | 1.16B | 1.16B | Stockholders Equity |
| 670.64M | 572.62M | 904.01M | 779.82M | 756.80M |
| Cash Flow | Free Cash Flow | |||
| 112.02M | 93.31M | 99.77M | 75.69M | 81.10M | Operating Cash Flow |
| 112.02M | 93.31M | 116.86M | 91.18M | 91.18M | Investing Cash Flow |
| -26.70M | -237.27M | -33.24M | -57.63M | -26.23M | Financing Cash Flow |
| -43.26M | 122.25M | -72.19M | -43.54M | -58.10M |
Armada Hoffler Properties Technical Analysis
Negative
7.69
Price Trends
9.14
Negative
9.86
Negative
10.45
Negative
Market Momentum
-0.45
Positive
32.41
Neutral
21.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AHH, the sentiment is Negative. The current price of 7.69 is below the 20-day moving average (MA) of 8.48, below the 50-day MA of 9.14, and below the 200-day MA of 10.45, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 32.41 is Neutral, neither overbought nor oversold. The STOCH value of 21.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AHH.
Armada Hoffler Properties Risk Analysis
Armada Hoffler Properties disclosed 77 risk factors in its most recent earnings report. Armada Hoffler Properties reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Armada Hoffler Properties Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $8.21B | 27.80 | 9.58% | 4.61% | 6.21% | 22.32% | |
71 Outperform | $13.05B | 33.84 | 5.82% | 3.80% | 10.15% | 3.36% | |
70 Outperform | $7.83B | 22.98 | 11.61% | 4.32% | 3.41% | 10.54% | |
68 Neutral | $779.15M | 32.28 | 5.73% | 10.66% | 6.17% | ― | |
67 Neutral | $61.12B | 21.48 | 80.78% | 5.00% | 5.40% | 8.57% | |
63 Neutral | $14.10B | 37.56 | 4.03% | 4.67% | 14.51% | -45.53% | |
61 Neutral | $4.75B | 18.23 | -3.59% | 10.86% | 6.00% | -21.50% |
* Real Estate Sector Average
Performance Comparison
AHH
Armada Hoffler Properties
7.90
-1.72
-17.88%
KIM
Kimco Realty
21.33
3.31
18.37%
REG
Regency Centers
72.44
15.61
27.47%
SPG
Simon Property
166.12
22.35
15.55%
FRT
Federal Realty
98.26
2.19
2.28%
BRX
Brixmor Property
26.10
4.64
21.62%
Armada Hoffler Properties Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -16.14% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balance between positive developments in leasing, asset dispositions, and multi-family expansion, against challenges in guidance reduction, retail closures, and increased interest expenses. The company remains focused on improving the quality of its income stream and long-term strategic growth.Highlights
Strong Leasing Performance
Executed new leases on nearly 200,000 sq. ft. and renewed over 125,000 sq. ft. at positive releasing spreads. Office assets command a 15% premium above competing central business districts, with occupancy at 97%.
Retail Portfolio Success
Retail portfolio achieved 95% occupancy, executing significant new leases with a national grocer and specialty retailer, backfilling spaces previously occupied by Bed Bath & Beyond.
Asset Dispositions and Profit
Sold two non-core, fully stabilized retail assets in the Southeast US for $82 million, representing more than a 20% profit spread over cost.
Multi-Family Expansion
Increased multi-family door count by 37% with an addition of approximately 900 units across four high-quality assets.
FFO and Normalized FFO Growth
Reported normalized FFO of $0.27 per diluted share and FFO of $0.29 per diluted share for Q4 2024, with year-end FFO of $1.02 per diluted share and normalized FFO of $1.29 per diluted share.
Lowlights
Guidance Reduction for 2025
FFO guidance for 2025 set at $1 to $1.10, reflecting challenges such as construction delivery delays, increased interest expense, and a one-time transaction fee.
Retail Sector Challenges
Store closures of Conn’s HomePlus, Party City, and JOANN Fabrics, representing over 115,000 sq. ft. of space and $1.5 million of ADR.
Construction Segment Pressure
Expected decline in construction gross profit for 2025, with projections between $6.8 million and $8.6 million.
Interest Rate and Debt Concerns
Increased interest expenses from development pipeline and ongoing concerns about rising interest rates affecting financial results.
Company Guidance
During the Armada Hoffler Fourth Quarter Earnings Conference Call, the management team provided guidance for 2025, projecting a normalized FFO range of $1 to $1.10 per diluted share. This guidance reflects challenges such as construction delivery delays, increased interest expenses, and one-time transaction fees from 2024. Despite these hurdles, the company remains focused on sustainable growth, emphasizing disciplined capital allocation and portfolio optimization. Key performance metrics from the fourth quarter 2024 include a normalized FFO of $0.27 per diluted share and an FFO of $0.29 per diluted share. The leasing activities were robust, with new leases and renewals covering over 325,000 square feet, contributing to a portfolio occupancy rate of 96%. The office segment showed strong performance with a 12.3% GAAP same-store growth. The company continues to enhance its financial resilience by maintaining a hedged variable rate debt exposure and a stable leverage ratio of 5.8 times, alongside an improved unsecured debt ratio.Armada Hoffler Properties Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Armada Hoffler Properties Expands Board with New Appointment
Neutral
Mar 3, 2025
On February 26, 2025, Armada Hoffler Properties announced the appointment of Jennifer R. Boykin as an independent director to its Board, effective March 1, 2025, expanding the Board from 10 to 11 members. Boykin, with her extensive leadership experience in shipbuilding and technology at Huntington Ingalls Industries, is expected to bring valuable insights to the company. Concurrently, A. Russell Kirk decided not to stand for re-election at the 2025 Annual Meeting, leading to a planned reduction of the Board size to nine directors after the meeting. These changes reflect Armada Hoffler’s strategic focus on enhancing its leadership to navigate industry challenges and drive sustainable growth.
Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Armada Hoffler Updates Partnership Agreement and Incentives
Positive
Feb 21, 2025
On February 13, 2025, Armada Hoffler Properties entered into the Second Amended and Restated Agreement of Limited Partnership, updating terms for various classes of partnership units and establishing Performance LTIP Units for performance-based vesting. These units can be converted into Common Units, offering flexibility and potential financial benefits to stakeholders. Additionally, the company’s Compensation Committee approved significant Time-Based LTIP Unit grants to executive officers Shawn J. Tibbetts and Matthew T. Barnes-Smith, reflecting the company’s commitment to incentivizing key leadership through equity awards.
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Armada Hoffler Properties Reports Strong Q4 2024 Results
Positive
Feb 19, 2025
Armada Hoffler Properties reported its fourth-quarter 2024 financial results, highlighting a significant turnaround from a net loss in the previous year to a net income of $26.1 million. The company also recorded a notable increase in funds from operations and stabilized portfolio occupancy rates. Key operational achievements include executing new and renewed leases, achieving positive releasing spreads, and completing significant real estate transactions that strengthened its financial position. As part of its leadership transition, Shawn J. Tibbetts assumed the role of CEO on January 1, 2025, succeeding Louis S. Haddad. The company has introduced a full-year 2025 Normalized FFO guidance range, indicating a strategic focus on sustainable growth and financial strength.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.