Armada Hoffler Q4 FFO beats analyst expectations on positive renewal spreads

Overview

• Real estate investment trust's Q4 funds from operations (FFO) beat analyst expectations

• Normalized FFO for Q4 increased due to higher portfolio NOI

• Company completed acquisition of Solis Gainesville II

Result Drivers

• POSITIVE RENEWAL SPREADS - Co reported positive renewal spreads in office and retail segments, with office at 9.1% (GAAP) and retail at 15.3% (GAAP)

• NOI INCREASE - Same Store NOI increased 6.3% on a GAAP basis, contributing to higher Normalized FFO

• INTEREST EXPENSE IMPACT - Increase in interest expense due to less capitalized interest as properties came out of development, affecting FFO

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "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 $7.75, about 12.5% above its February 13 closing price of $6.89

• The stock recently traded at 58 times the next 12-month earnings vs. a P/E of 30 three months ago

Press Release: ID:nGNX6wFH7h

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