Armada Hoffler Properties (AHH) AI Stock Analysis

• Market Cap: $553.06M
• Dividend Yield: 9.1%
• Average Volume (3M): 983.46K
• Price to Earnings (P/E): 51.0
• Beta (1Y): 0.83
• Revenue Growth: -39.94%
• EPS Growth: N/A
• Country: US
• Employees: 148
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): -0.04
• Shares Outstanding: 80,153,390
• 10 Day Avg. Volume: 1,069,946
• 30 Day Avg. Volume: 983,458
• PEG Ratio: -0.03
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 6.45
• Enterprise Value/Market Cap: 4.52
• Enterprise Value/Revenue: 5.50
• Enterprise Value/Gross Profit: 12.79
• Enterprise Value/Ebitda: 11.98
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): $264.72M

• Rating: 61 Neutral
• Price Target: $7.00 ▲(8.36% Upside)

The overall stock score of 61 reflects a balance of strengths and challenges. Strong operational efficiency and cash flow generation are offset by high leverage and declining revenue. The technical indicators suggest short-term bullish momentum, while the high P/E ratio raises valuation concerns. The earnings call and corporate events provide a positive outlook with strategic initiatives to address leverage and enhance shareholder value.

Positive Factors

Strong Portfolio Occupancy

High occupancy rates across segments indicate strong demand and effective property management, supporting stable rental income and cash flow.

Cash Flow Generation

Improved cash generation enhances financial flexibility, enabling strategic investments and debt reduction, crucial for long-term stability.

Leadership Transition

Leadership transition aims to unify governance and strategic direction, potentially improving operational efficiency and shareholder value.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Declining Revenue

Declining revenue growth challenges profitability and may hinder the company's ability to sustain operations and invest in future growth.

Tenant Bankruptcies

Tenant bankruptcies can reduce occupancy and rental income, affecting cash flow and necessitating increased efforts to fill vacant spaces.

Armada Hoffler Properties Business Overview & Revenue Model

Company Description

Armada Hoffler Properties (AHH) is a publicly traded real estate investment trust (REIT) that primarily focuses on the development, construction, and management of high-quality properties across various sectors, including multifamily residential, retail, and office spaces. The company operates primarily in the Southeastern and Mid-Atlantic regions of the United States, providing a diverse portfolio of properties that cater to different market needs. AHH is committed to delivering value through strategic investments, innovative design, and a customer-centric approach in its real estate operations.

How the Company Makes Money

Armada Hoffler Properties generates revenue primarily through leasing its developed properties to tenants, which includes residential units in multifamily buildings and commercial spaces in retail and office settings. The company earns rental income from long-term leases, providing a stable cash flow. Additionally, AHH engages in property development and construction services, which can contribute to revenue through project management fees and construction contracts. The company may also benefit from strategic partnerships with local and national retailers and businesses that enhance its property portfolio and drive occupancy rates. Overall, the combination of rental income, development activities, and partnerships contributes to AHH's financial performance.

Armada Hoffler Properties Financial Statement Overview

Summary

Armada Hoffler Properties shows operational efficiency with a solid gross profit margin and positive cash flow growth. However, challenges include declining revenue, high leverage, and a low net profit margin, which impact overall financial stability.

Income Statement

The income statement shows a decline in revenue with a negative growth rate of -16.77% in the TTM period. Despite this, the company maintains a solid gross profit margin of 54.34% and an EBIT margin of 22.67%, indicating operational efficiency. However, the net profit margin is relatively low at 5.88%, suggesting challenges in converting revenue into net income.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.02, indicating significant leverage, which could pose financial risks. The return on equity is modest at 3.79%, reflecting limited profitability from shareholders' investments. The equity ratio stands at 32.73%, showing a moderate level of equity financing.

Cash Flow

The cash flow statement highlights a positive free cash flow growth rate of 18.91% in the TTM period, demonstrating improved cash generation. The free cash flow to net income ratio is strong at 1.46, indicating effective cash conversion. However, the operating cash flow to net income ratio is lower at 0.67, suggesting potential challenges in cash flow generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	454.59M	708.47M	667.16M	471.13M	302.53M	383.63M
Gross Profit	195.32M	203.45M	188.58M	171.17M	146.09M	117.07M
EBITDA	208.51M	211.81M	164.23M	213.57M	128.49M	111.97M
Net Income	26.66M	35.65M	8.29M	74.75M	21.89M	29.15M
Balance Sheet
Total Assets	2.58B	2.51B	2.56B	2.24B	1.94B	1.92B
Cash, Cash Equivalents and Short-Term Investments	46.51M	70.64M	27.92M	48.14M	35.25M	41.00M
Total Debt	1.61B	1.42B	1.79B	1.21B	1.01B	1.02B
Total Liabilities	1.73B	1.62B	1.76B	1.34B	1.16B	1.16B
Stockholders Equity	638.84M	670.64M	572.62M	647.45M	555.35M	756.80M
Cash Flow
Free Cash Flow	58.30M	112.02M	93.31M	99.77M	75.69M	91.18M
Operating Cash Flow	58.30M	112.02M	93.31M	116.86M	91.18M	91.18M
Investing Cash Flow	-38.65M	-26.70M	-237.27M	-33.24M	-57.63M	-26.23M
Financing Cash Flow	-15.56M	-43.26M	122.25M	-72.19M	-43.54M	-58.10M

Armada Hoffler Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AHH, the sentiment is Positive. The current price of 6.46 is above the 20-day moving average (MA) of 6.44, below the 50-day MA of 6.55, and below the 200-day MA of 6.86, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 63.35 is Neutral, neither overbought nor oversold. The STOCH value of 80.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AHH.

Armada Hoffler Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLP	71 Outperform	$434.81M	15.57	10.91%	8.58%	7.71%	-5.37%
CTO	69 Neutral	$589.50M	―	-5.80%	8.61%	23.84%	-312.04%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AHH	61 Neutral	$553.06M	51.04	4.09%	9.10%	-39.94%	―
BRSP	60 Neutral	$765.42M	―	-3.58%	10.79%	-12.57%	70.50%
GOOD	58 Neutral	$524.86M	58.32	5.96%	11.11%	4.95%	-6.49%
PKST	56 Neutral	$513.97M	―	-31.72%	5.43%	-16.50%	-640.43%

Armada Hoffler Properties Corporate Events

Armada Hoffler Reports Q3 2025 Financial Results

Armada Hoffler Properties reported a GAAP net loss of $0.04 per diluted share for the third quarter of 2025, with normalized funds from operations (FFO) at $0.29 per diluted share. The company executed 25 commercial lease renewals and 7 new leases, totaling approximately 270,000 square feet, and maintained a high occupancy rate across its portfolio. Despite a decrease in normalized FFO compared to the previous year, the company highlighted its strong property-level income and strategic capital allocation, which positions it for sustainable growth. Additionally, the company completed a note purchase agreement for $115 million in senior unsecured notes to strengthen its financial position.

Armada Hoffler Announces Chairman Transition Plan

On October 16, 2025, Armada Hoffler Properties announced the resignation of Louis S. Haddad as Chairman of the Board, effective January 1, 2026, with Shawn J. Tibbetts, the current CEO and President, appointed as the new Chairman. This appointment is part of a planned succession strategy initiated in 2024, aimed at unifying leadership to enhance efficiency and drive long-term shareholder value. Tibbetts’ leadership experience is expected to support the company’s strategic growth and governance, while Haddad will continue contributing as a board member, ensuring continuity with his institutional knowledge.