Armada Hoffler Properties, Inc. announced (NYSE:), a real estate investment trust, today announced the completion of its public offering, which included purchases by several members of its board of directors. The company on Wednesday entered into an underwriting agreement with Jefferies LLC and BofA Securities, Inc. and Barclays Capital Inc. To sell 9 million shares at $10.50 per share.
In addition to the IPO, the underwriters on Thursday exercised an option to acquire an additional 1.35 million shares. The subscription was closed today with the participation of some members of the Board of Directors as investors.
Louis S. Haddad, CEO and CEO, along with other board members, including Daniel A. Hoefler, Chairman Emeritus, and A. Russell Kirk, purchasing the shares at the public offering price. The transactions were made pursuant to the prospectus supplement and base prospectus relating to the Company’s shelf registration statement.
The company, with its principal executive offices in Virginia Beach, Virginia, operates in the real estate sector, with a focus on real estate development and management. This offering is part of Armada Hoffler’s capital raising activities, as the Company’s common and preferred shares are listed on the New York Stock Exchange.
Details of the underwriting agreement, along with legal opinions and consents relating to the offering, have been filed with the Securities and Exchange Commission and are included as exhibits in the Company’s Current Report on Form 8-K. This information is based on a press release.
In other recent news, Armada Hoffler Properties, Inc. Noticeable strides in its financial performance and strategic initiatives. The company recently launched a public offering of 7 million shares of common stock, with an option for underwriters to purchase an additional 1.05 million shares. Proceeds from this offering will be used to repay various loans and address overhead expenses for the company, as managed by Jefferies, BofA Securities and Barclays.
In addition, Armada Hoffler declared a dividend on its common and preferred stock, with a cash dividend of $0.205 per common share for the third quarter and a cash dividend of $0.421875 per share on its 6.75% cumulative redeemable perpetual preferred stock. This step confirms the company’s commitment to providing value to its shareholders.
Furthermore, Armada Hoofler announced strong financial results for the second quarter of 2024, anticipating high profits by the end of the year. The company’s portfolio has witnessed an increase in tenant demand and an improvement in rents, especially in the office sector. The construction division also recorded its highest gross profit ever.
The company’s mixed-use ecosystem is expanding, with three projects expected to be completed by the end of the year. Armada Hoffler also successfully sold Solace City Park at an average markup of 5%, indicating a healthy market. Finally, there is an upcoming leadership transition, with Sean Tibbetts set to take over as CEO next year.
InvestingPro Insights
Armada Hoffler Properties’ recent public stock offering comes at a time when the company’s financial metrics present a mixed picture. According to InvestingPro data, the company has a market cap of $967 million, with a notable dividend yield of 7.59%. This high yield is in line with InvestingPro’s advice that AHH “pays significant dividends to shareholders,” which could be attractive to income-focused investors given its recent stock offering.
The company’s revenue growth has been strong, with a 23.67% increase over the past 12 months as of Q2 2024. However, InvestingPro’s advice notes that “analysts expect sales to decline in the current year,” which may explain the company’s decision to increase Capital. Through this offering of shares
Despite recent growth, AHH’s profitability has been challenged, as evidenced by its negative P/E ratio of -253.65 (adjusted to the trailing 12 months). This is consistent with another InvestingPro tip that the company “was not profitable in the last 12 months.” However, there is optimism for the future, as analysts expect the company to return to profitability this year.
For investors looking for a deeper understanding of Armada Hofler properties, InvestingPro offers additional tips and insights. There are 9 additional InvestingPro tips available for AHH, which can provide valuable context on the company’s recent capital raising activities and its future prospects.
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