Armada Hoffler Properties (AHH) AI Stock Analysis

• Market Cap: $753.03M
• Dividend Yield: 9.29%
• Average Volume (3M): 623.41K
• Price to Earnings (P/E): 78.2
• Beta (1Y): 0.83
• Revenue Growth: -25.73%
• EPS Growth: N/A
• Country: US
• Employees: 148
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Diversified
• EPS (TTM): 0.04
• Shares Outstanding: 80,158,806
• 10 Day Avg. Volume: 519,057
• 30 Day Avg. Volume: 623,406
• 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: 3.25
• Enterprise Value/Revenue: 4.48
• Enterprise Value/Gross Profit: 10.71
• Enterprise Value/Ebitda: 12.89
• 1Y Price Target: $8.38
• Price Target Upside: 12.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: $8.00 ▲(7.67% Upside)

Armada Hoffler Properties' stock score is driven by a positive earnings call and strong technical indicators. However, financial performance concerns, particularly high leverage and declining revenue growth, along with a high P/E ratio, weigh on the overall score. The attractive dividend yield provides some support.

Positive Factors

Strong Portfolio Performance

High occupancy rates across office and retail properties indicate strong demand and effective management, supporting stable cash flow and long-term growth.

Successful Retail Leasing Strategy

Replacing vacancies with higher credit tenants and achieving rent increases enhances revenue stability and reflects a competitive leasing strategy.

Debt Private Placement Milestone

The successful debt placement improves financial flexibility and reduces interest rate risk, supporting long-term strategic initiatives and growth.

Negative Factors

Declining Revenue Growth

Declining revenue growth suggests challenges in expanding market share or increasing sales, potentially impacting future profitability and cash flow.

High Leverage

High leverage can constrain financial flexibility and increase risk, especially in economic downturns, potentially affecting long-term sustainability.

Construction Challenges

Ongoing construction issues may lead to increased costs and project delays, impacting operational efficiency and asset value over the medium term.

Armada Hoffler Properties Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Armada Hoffler Properties generates revenue primarily through rental income from its diverse portfolio of properties, which includes multifamily apartments, retail spaces, and office buildings. The company earns money by leasing these spaces to tenants, providing steady cash flow. Additionally, AHH engages in property development and construction, allowing it to benefit from project completions and subsequent leasing opportunities. Key revenue streams include long-term leases with commercial tenants, residential rents from apartment complexes, and fees from property management services. Strategic partnerships with local and regional developers also contribute to its earnings, enhancing its ability to expand its property portfolio and optimize asset management.

Armada Hoffler Properties Financial Statement Overview

Summary

Armada Hoffler Properties demonstrates operational efficiency and stable cash flow generation. However, high leverage and recent declines in net income and revenue growth present challenges. The company should focus on improving profitability and reducing debt to enhance financial health.

Income Statement

Armada Hoffler Properties shows a stable gross profit margin and a moderate EBIT margin, reflecting operational efficiency. However, the net profit margin has decreased in the TTM period due to a significant drop in net income. Revenue growth has been inconsistent, with a recent decline, highlighting potential risks in revenue generation.

Balance Sheet

The company maintains a high debt-to-equity ratio, indicative of significant leverage, which poses financial risks. However, the equity ratio reflects a reasonable proportion of equity financing. Return on equity has decreased, suggesting lower profitability relative to equity. Overall, the balance sheet is stable but leveraged.

Cash Flow

Operating cash flow remains strong with a healthy operating cash flow to net income ratio. However, free cash flow has decreased, and the free cash flow to net income ratio indicates a potential decline in cash generation relative to profits. Cash flow stability is evident but shows areas for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	546.16M	708.47M	667.16M	454.15M	284.08M	383.63M
Gross Profit	228.56M	203.45M	187.85M	154.20M	127.63M	117.07M
EBITDA	189.84M	211.81M	164.23M	213.57M	132.57M	128.27M
Net Income	22.39M	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	52.11M	70.64M	27.92M	48.14M	35.25M	41.00M
Total Debt	1.66B	1.42B	1.52B	1.21B	995.36M	1.02B
Total Liabilities	1.72B	1.62B	1.76B	1.34B	1.16B	1.16B
Stockholders Equity	860.79M	670.64M	572.62M	904.01M	779.82M	756.80M
Cash Flow
Free Cash Flow	71.77M	112.02M	93.31M	99.77M	75.69M	81.10M
Operating Cash Flow	60.33M	112.02M	93.31M	116.86M	91.18M	91.18M
Investing Cash Flow	-12.50M	-26.70M	-237.27M	-33.24M	-57.63M	-26.23M
Financing Cash Flow	-14.93M	-43.26M	122.25M	-72.19M	-43.54M	-58.10M

Armada Hoffler Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 7.43 is above the 20-day moving average (MA) of 7.16, above the 50-day MA of 7.06, and below the 200-day MA of 7.90, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 62.82 is Neutral, neither overbought nor oversold. The STOCH value of 63.98 is Neutral, 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	76 Outperform	$501.55M	17.63	9.16%	7.75%	5.57%	-14.50%
AHH	67 Neutral	$753.03M	78.15	3.55%	9.29%	-25.73%	―
Sector *	63 Neutral	$7.15B	13.09	-0.31%	6.85%	4.03%	-25.34%
GOOD	59 Neutral	$682.86M	35.67	8.51%	9.16%	5.85%	―
PKST	58 Neutral	$484.90M	―	-35.52%	6.55%	-6.69%	-118.66%
BRSP	56 Neutral	$772.16M	―	-2.41%	10.77%	-14.73%	79.63%
CTO	52 Neutral	$560.63M	36.87	-5.66%	9.17%	22.26%	-328.46%

Armada Hoffler Properties Corporate Events

Armada Hoffler Properties Reports Q2 2025 Financial Results

Armada Hoffler Properties reported its second quarter 2025 results, highlighting a GAAP net income of $0.04 per diluted share and a normalized FFO of $0.25 per diluted share. The company maintained a strong occupancy rate across its property portfolio and executed significant commercial lease renewals and new leases. The company also completed strategic financial transactions, including acquiring full ownership of a development project and issuing senior unsecured notes to refinance existing debt. Despite a decrease in funds from operations compared to the previous year, the company remains focused on delivering consistent earnings growth and long-term value.

Armada Hoffler Closes $115M Private Placement Notes

On July 22, 2025, Armada Hoffler Properties announced the closing of its inaugural private placement of $115 million in senior unsecured notes, issued in three tranches with varying maturities. The proceeds will be used for general corporate purposes and to refinance existing debt, enhancing the company’s balance sheet flexibility and supporting its long-term strategy.

Armada Hoffler Properties Approves Proposals at Annual Meeting

On June 18, 2025, Armada Hoffler Properties held its annual meeting where stockholders voted on several proposals, including the election of directors and amendments to the equity incentive plan. The stockholders approved all proposals, including the ratification of Ernst & Young LLP as the company’s independent auditor and the advisory vote on executive compensation. Additionally, the board approved a new performance-based LTIP unit award agreement, with significant grants to key executives, aligning their incentives with the company’s financial performance and stockholder returns.