Armada Hoffler Q2 net income rises

Overview

• Armada Hoffler Q2 net income rises significantly

• Company's FFO and Normalized FFO decline yr/yr due to increased interest expenses

• Armada Hoffler maintains 2025 full-year Normalized FFO guidance

Outlook

• Company maintains 2025 full-year Normalized FFO guidance at $1.00 to $1.10 per share

• Company expects full-year 2025 Portfolio NOI between $173.6 mln and $176.0 mln

• Company projects full-year 2025 Construction Segment Gross Profit of $5.0 mln to $7.0 mln

• Company anticipates full-year 2025 Interest Income of $15.3 mln to $16.3 mln

Result Drivers

• CONSOLIDATION GAIN - Net income increased due to a $6.9 mln gain from consolidating the Harbor Point Parcel 4 project

• FFO DECLINE - Year-over-year decrease in FFO due to lower gross profit from contracting services, higher interest expenses, and losses from unconsolidated entities

• POSITIVE LEASING SPREADS - Positive office and retail releasing spreads contributed to the quarter's performance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the diversified reits peer group is "buy"

• Wall Street's median 12-month price target for Armada Hoffler Properties Inc is $8.00, about 16.4% above its August 1 closing price of $6.69

• The stock recently traded at 71 times the next 12-month earnings vs. a P/E of 55 three months ago

Press Release: