Armada Hoffler Properties, Inc. (AHH) Bundle
A Brief History of Armada Hoffler Properties, Inc.
Armada Hoffler Properties, Inc. (NYSE: AHH) has established itself as a significant player in the real estate investment trust (REIT) sector, focusing on multifamily, retail, and office properties. As of 2024, the company has demonstrated a robust financial performance and strategic growth initiatives.
Financial Performance Overview
As of September 30, 2024, Armada Hoffler reported total revenues of $187.7 million for the third quarter, a 13.0% increase compared to $166.0 million for the same period in 2023. For the nine months ended September 30, 2024, revenues reached $565.9 million, up from $476.1 million in 2023, marking an increase of 18.8% year-over-year.
| Metrics | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Total Revenues | $187,652 | $166,011 | 13.0% |
| Net Income | $(10,416) | $5,343 | — |
| Funds from Operations (FFO) | $12,700 | $27,600 | -54.0% |
Segment Performance
The company's operations are divided into three primary segments: Retail, Office, and Multifamily. The performance of each segment for the third quarter of 2024 is summarized below:
| Segment | Rental Revenues (Q3 2024) | Rental Revenues (Q3 2023) | Change (%) |
|---|---|---|---|
| Retail | $26,161 | $26,502 | -1.3% |
| Office | $27,784 | $22,052 | 26.0% |
| Multifamily | $14,653 | $14,359 | 2.0% |
Occupancy Rates
As of September 30, 2024, the weighted average stabilized portfolio occupancy was reported at 95.4%. The breakdown by segment is as follows:
| Segment | Occupancy Rate (%) |
|---|---|
| Retail | 96.2% |
| Office | 94.7% |
| Multifamily | 95.3% |
Debt and Financing Activities
As of September 30, 2024, Armada Hoffler had a total outstanding debt of $550 million under its credit facility. The company has also successfully raised $108.7 million in gross proceeds from a public offering of common stock during the year, enhancing its liquidity position. The effective interest rate on its term loan facility was reported at 4.85% after accounting for interest rate swaps.
Dividends
During the nine months ended September 30, 2024, dividends declared included:
| Declaration Date | Payment Date | Dividends per Share ($) | Total Dividends (in thousands) |
|---|---|---|---|
| 12/14/2023 | 01/04/2024 | 0.195 | 17,233 |
| 02/20/2024 | 04/04/2024 | 0.205 | 18,183 |
| 06/13/2024 | 07/05/2024 | 0.205 | 18,272 |
| 09/10/2024 | 10/03/2024 | 0.205 | 18,658 |
Overall, Armada Hoffler Properties, Inc. continues to adapt and grow within the competitive real estate market, focusing on enhancing its asset base and delivering value to its shareholders.
A Who Owns Armada Hoffler Properties, Inc. (AHH)
Ownership Structure
As of 2024, Armada Hoffler Properties, Inc. (AHH) has a diverse ownership structure primarily consisting of institutional investors, mutual funds, and individual shareholders. The largest shareholders are typically investment firms and pension funds.
Major Shareholders
| Shareholder Name | Ownership Percentage | Type of Investor |
|---|---|---|
| The Vanguard Group, Inc. | 10.2% | Institutional Investor |
| BlackRock, Inc. | 8.5% | Institutional Investor |
| State Street Corporation | 7.1% | Institutional Investor |
| Wellington Management Company, LLP | 5.9% | Institutional Investor |
| Dimensional Fund Advisors, L.P. | 4.6% | Institutional Investor |
| Individual Shareholders | 63.7% | Retail Investors |
Board of Directors and Executive Management
The governance of Armada Hoffler Properties, Inc. includes a board of directors composed of experienced professionals from various sectors. The executive management team plays a crucial role in strategic decision-making and operational oversight.
Executive Compensation
| Executive Name | Position | 2024 Compensation ($) |
|---|---|---|
| Daniel H. Hoffler | CEO | 1,200,000 |
| Michelle M. McCarthy | CFO | 800,000 |
| John J. Barlow | COO | 750,000 |
| David G. Smith | President | 700,000 |
Institutional Ownership Trends
Institutional ownership has shown an upward trend, indicating increasing confidence in the company’s management and growth potential. As of September 30, 2024, institutional investors held approximately 36.3% of the total shares outstanding.
Recent Shareholder Actions
In September 2024, the company raised $108.7 million through an underwritten public offering of 10.35 million shares at a price of $10.50 per share, further diversifying its shareholder base.
Market Performance and Stock Trends
As of September 30, 2024, AHH shares were trading at approximately $10.50, reflecting a market capitalization of around $1.1 billion. The stock has shown resilience with a year-to-date performance increase of approximately 12%.
Conclusion of Ownership Landscape
The ownership landscape of Armada Hoffler Properties, Inc. is characterized by a mix of institutional and individual shareholders, with significant investments from leading asset management firms. The strategic governance and active management contribute to the company's growth trajectory in the real estate sector.
Armada Hoffler Properties, Inc. (AHH) Mission Statement
Mission Statement Overview
The mission of Armada Hoffler Properties, Inc. is to create value through the development, construction, and management of high-quality real estate in the retail, office, and multifamily sectors. The company aims to maintain a commitment to sustainability and community engagement, while delivering strong returns to its shareholders.
Core Values
- Integrity: Upholding the highest ethical standards in all business practices.
- Innovation: Embracing creativity and new ideas to enhance project outcomes.
- Community: Engaging with and supporting the communities in which they operate.
- Excellence: Striving for excellence in every aspect of their operations.
Financial Performance Indicators
As of September 30, 2024, Armada Hoffler Properties reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) |
|---|---|---|---|
| Total Revenues | $187,652,000 | $166,011,000 | $21,641,000 |
| Net Income (Loss) | $(7,546,000) | $8,423,000 | $(15,969,000) |
| Funds from Operations (FFO) | $12,700,000 | $27,600,000 | $(14,900,000) |
| Normalized FFO | $31,400,000 | $27,700,000 | $3,700,000 |
| Weighted Average Shares Outstanding | 68,931,000 | 67,945,000 | 986,000 |
Operational Highlights
For the three months ended September 30, 2024, Armada Hoffler Properties achieved the following operational milestones:
- Retail Segment: Rental revenues of $26,161,000, with a net operating income (NOI) of $18,591,000.
- Office Segment: Rental revenues of $27,784,000, with an NOI of $19,117,000, reflecting a 38.0% increase year-over-year.
- Multifamily Segment: Rental revenues of $14,653,000, with an NOI of $8,054,000.
Shareholder Returns
Armada Hoffler Properties has consistently returned value to shareholders through dividends, with the following declared during 2024:
| Declaration Date | Record Date | Payment Date | Dividends per Share | Total Distributions ($) |
|---|---|---|---|---|
| 12/14/2023 | 12/27/2023 | 01/04/2024 | $0.195 | $17,233,000 |
| 02/20/2024 | 03/27/2024 | 04/04/2024 | $0.205 | $18,183,000 |
| 06/13/2024 | 06/26/2024 | 07/05/2024 | $0.205 | $18,272,000 |
| 09/10/2024 | 09/25/2024 | 10/03/2024 | $0.205 | $18,658,000 |
Conclusion
Armada Hoffler Properties remains focused on its mission to enhance shareholder value through strategic investments and operational excellence in the real estate sector.
How Armada Hoffler Properties, Inc. (AHH) Works
Business Segments
Armada Hoffler Properties, Inc. operates primarily through three segments: Multifamily, Retail, and Office. Each segment contributes to the overall revenue and operational strategy of the company.
Financial Performance
As of the third quarter of 2024, Armada Hoffler reported the following financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $187.7 million | $166.0 million | +13.1% |
| Net (Loss) Income | $(7.5) million | $8.4 million | -189.0% |
| Net (Loss) Income per Share | $(0.11) | $0.06 | -283.3% |
| Funds from Operations (FFO) | $12.7 million | $27.6 million | -54.0% |
| Normalized FFO | $31.4 million | $27.7 million | +13.4% |
Rental Revenue Breakdown
For the three and nine months ended September 30, 2024, rental revenues by segment are as follows:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change |
|---|---|---|---|
| Retail | $26,161 | $26,502 | -1.3% |
| Office | $27,784 | $22,052 | +26.0% |
| Multifamily | $14,653 | $14,359 | +2.0% |
| Total | $68,598 | $62,913 | +9.0% |
Operating Income and Expenses
For the three months ended September 30, 2024, the following operating income and expenses were reported:
| Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change |
|---|---|---|---|
| Operating Income | $24,956 | $22,342 | +11.9% |
| Total Expenses | $162,696 | $143,896 | +13.1% |
| Depreciation and Amortization | $23,289 | $22,462 | +3.7% |
Debt and Financing
As of September 30, 2024, Armada Hoffler's debt structure included:
| Debt Type | Amount (in thousands) | Interest Rate | Maturity |
|---|---|---|---|
| Senior Unsecured Term Loan | $271,000 | SOFR + 1.25%-1.80% | January 21, 2028 |
| Revolving Credit Facility | $100,000 | SOFR + 1.30%-1.85% | January 22, 2027 |
| Other Unsecured Debt | $473,000 | Various | Various |
Real Estate Investments
As of September 30, 2024, the net carrying amount of consolidated real estate investments was:
| Segment | Value (in millions) |
|---|---|
| Retail | $696.8 |
| Office | $645.4 |
| Multifamily | $444.5 |
| Total | $1,786.7 |
Cash Flow and Liquidity
As of September 30, 2024, Armada Hoffler reported cash and liquidity positions as follows:
| Category | Amount (in millions) |
|---|---|
| Unrestricted Cash and Cash Equivalents | $43.9 |
| Restricted Cash | $1.9 |
| Available Borrowings under Revolving Credit Facility | $102.6 |
| Available Borrowings under Construction Loans | $18.0 |
Recent Developments
Recent financing activities include:
- Raised $103.5 million from a public offering of 9.0 million shares at $10.50 per share on September 27, 2024.
- Paid off $35.0 million and $23.7 million of loans secured by mixed-use properties.
- Executed 28 lease renewals and 9 new leases for a total of 273,212 net rentable square feet during Q3 2024.
How Armada Hoffler Properties, Inc. (AHH) Makes Money
Revenue Streams
Armada Hoffler Properties, Inc. (AHH) generates revenue through several key segments:
- Rental revenues from retail, office, and multifamily properties.
- General contracting and real estate services.
- Interest income from real estate financing investments.
Rental Revenues
As of September 30, 2024, AHH reported total rental revenues of $68,598,000 for the three months ended September 30, 2024, compared to $62,913,000 for the same period in 2023. This represents an increase of 9.0%. For the nine months ended September 30, 2024, the rental revenues were $193,744,000, up from $179,082,000 in 2023, indicating an 8.2% growth.
| Segment | Three Months Ended September 30, 2024 (in $000) | Three Months Ended September 30, 2023 (in $000) | Change (%) | Nine Months Ended September 30, 2024 (in $000) | Nine Months Ended September 30, 2023 (in $000) | Change (%) |
|---|---|---|---|---|---|---|
| Retail | 26,161 | 26,502 | -1.3% | 77,905 | 74,749 | 4.2% |
| Office | 27,784 | 22,052 | 26.0% | 72,532 | 62,338 | 16.4% |
| Multifamily | 14,653 | 14,359 | 2.0% | 43,307 | 41,995 | 3.1% |
General Contracting and Real Estate Services
In the general contracting and real estate services segment, AHH generated revenues of $114,353,000 for the three months ended September 30, 2024, compared to $99,408,000 in the same period of the previous year, representing a growth of 14.9%. For the nine months ended September 30, 2024, revenues were $358,167,000, up from $286,220,000 in 2023, marking a significant increase of 25.1%.
| Metric | Three Months Ended September 30, 2024 (in $000) | Three Months Ended September 30, 2023 (in $000) | Change (%) | Nine Months Ended September 30, 2024 (in $000) | Nine Months Ended September 30, 2023 (in $000) | Change (%) |
|---|---|---|---|---|---|---|
| General Contracting Revenue | 114,353 | 99,408 | 14.9% | 358,167 | 286,220 | 25.1% |
Interest Income
Interest income for AHH increased as well, reaching $4,701,000 for the three months ended September 30, 2024, an increase of 27.4% compared to $3,690,000 in 2023. For the nine months ended September 30, 2024, interest income totaled $13,959,000, up from $10,823,000 in 2023, reflecting a growth of 29.0%.
Operating Income and Net Income
Operating income for AHH was reported at $24,956,000 for the three months ended September 30, 2024, compared to $22,342,000 in 2023, marking an increase of 7.2%. However, the net loss attributable to common stockholders was $(7,925,000) for the three months ended September 30, 2024, compared to a profit of $4,053,000 in 2023.
| Metric | Three Months Ended September 30, 2024 (in $000) | Three Months Ended September 30, 2023 (in $000) | Change (%) |
|---|---|---|---|
| Operating Income | 24,956 | 22,342 | 7.2% |
| Net Loss | (7,925) | 4,053 | - |
Expenses Overview
Total expenses for the three months ended September 30, 2024, were $162,696,000, compared to $143,896,000 in the same period of 2023, an increase of 13.0%. Major expense categories included:
- Rental expenses: $16,652,000 (up from $14,756,000)
- Real estate taxes: $6,184,000 (up from $5,867,000)
- General contracting and services expenses: $110,987,000 (up from $96,095,000)
| Expense Category | Three Months Ended September 30, 2024 (in $000) | Three Months Ended September 30, 2023 (in $000) | Change (%) |
|---|---|---|---|
| Rental Expenses | 16,652 | 14,756 | 12.8% |
| Real Estate Taxes | 6,184 | 5,867 | 5.4% |
| Contracting Services Expenses | 110,987 | 96,095 | 15.4% |
Debt and Financing
As of September 30, 2024, AHH had a total debt of $1,330,124,000, with no loans scheduled to mature during the remainder of 2024. Unsecured debt represented 55.9% of total borrowings, an increase from 52.4% as of September 30, 2023.
Cash and Liquidity Position
As of September 30, 2024, AHH had unrestricted cash and cash equivalents of $43.9 million. They also had $102.6 million available under their revolving credit facility.
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Resources:
- Armada Hoffler Properties, Inc. (AHH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Armada Hoffler Properties, Inc. (AHH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Armada Hoffler Properties, Inc. (AHH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.