Armada Hoffler Closes $115 Million Inaugural Private Placement of Senior Unsecured Notes

Armada Hoffler closes $115 million in senior notes to refinance debt and enhance capital flexibility with a 5.86% interest rate.

Quiver AI Summary

Armada Hoffler (NYSE: AHH) has successfully completed its first private placement of $115 million in senior unsecured notes, issued in three tranches with maturities of 3, 5, and 7 years at a blended interest rate of 5.86%. The funds will be used for general corporate purposes and refinancing existing debt, contributing to the company's financial flexibility and strategy to diversify capital sources. Matthew Barnes-Smith, CFO, highlighted the long-term benefits of this capital. Additionally, Morningstar DBRS recently reaffirmed Armada Hoffler's BBB credit rating with a stable outlook, reflecting the company's improved leverage and diversified portfolio. The notes will not be registered under the Securities Act, which means they cannot be offered or sold in the U.S. without proper registration or exemption.

Potential Positives

Armada Hoffler successfully closed its inaugural private placement of $115 million in senior unsecured notes, indicating strong investor confidence and access to capital markets.
The issuance of the notes enhances the company's balance sheet flexibility and provides long-term capital at a fixed interest rate of 5.86%.
Morningstar DBRS reaffirmed Armada Hoffler's BBB credit rating and revised its outlook to stable, highlighting the company's improved leverage profile and diversified real estate portfolio.

Potential Negatives

The issuance of senior unsecured notes may indicate a reliance on debt financing, which could raise concerns about the company's long-term solvency and financial stability.
The fact that the notes have not been registered under the Securities Act raises potential legal and regulatory risks, limiting their marketability and attractiveness to certain investors.
The nature of the forward-looking statements may create uncertainty regarding the company's financial future and the actual use of proceeds from the offering, which could lead to investor skepticism.

FAQ

What is the amount of Armada Hoffler's private placement?

Armada Hoffler closed its inaugural private placement of $115 million in senior unsecured notes.

What are the maturities of the issued notes?

The notes were issued in three tranches with maturities of 3, 5, and 7 years.

What will the proceeds from the notes be used for?

Proceeds will be used for general corporate purposes and to refinance existing debt.

What is Armada Hoffler's credit rating?

Morningstar DBRS reaffirmed Armada Hoffler’s BBB credit rating and revised its outlook to stable.

How can I contact Armada Hoffler for more information?

You can contact Chelsea Forrest at [email protected] or call (757) 612-4248.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$AHH Insider Trading Activity

$AHH insiders have traded $AHH stock on the open market 9 times in the past 6 months. Of those trades, 9 have been purchases and 0 have been sales.

Here’s a breakdown of recent trading of $AHH stock by insiders over the last 6 months:

A RUSSELL KIRK has made 5 purchases buying 100,954 shares for an estimated $775,834 and 0 sales.
FREDERICK BLAIR WIMBUSH has made 4 purchases buying 846 shares for an estimated $6,019 and 0 sales.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$AHH Hedge Fund Activity

We have seen 104 institutional investors add shares of $AHH stock to their portfolio, and 112 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

MACQUARIE GROUP LTD removed 2,096,655 shares (-57.9%) from their portfolio in Q1 2025, for an estimated $15,745,879
KESTRA ADVISORY SERVICES, LLC removed 1,026,803 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $7,711,290
ALYESKA INVESTMENT GROUP, L.P. removed 850,100 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $6,384,251
BALYASNY ASSET MANAGEMENT L.P. added 756,859 shares (+113.2%) to their portfolio in Q1 2025, for an estimated $5,684,011
QUBE RESEARCH & TECHNOLOGIES LTD added 734,369 shares (+225.2%) to their portfolio in Q1 2025, for an estimated $5,515,111
FIRST EAGLE INVESTMENT MANAGEMENT, LLC removed 683,736 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $5,134,857
INVESCO LTD. added 507,502 shares (+40.2%) to their portfolio in Q1 2025, for an estimated $3,811,340

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$AHH Analyst Ratings

Wall Street analysts have issued reports on $AHH in the last several months. We have seen 2 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

Jefferies issued a "Buy" rating on 06/27/2025
Stifel issued a "Buy" rating on 05/08/2025

To track analyst ratings and price targets for $AHH, check out Quiver Quantitative's $AHH forecast page.

$AHH Price Targets

Multiple analysts have issued price targets for $AHH recently. We have seen 3 analysts offer price targets for $AHH in the last 6 months, with a median target of $8.0.

Here are some recent targets:

Peter Abramowitz from Jefferies set a target price of $8.0 on 06/27/2025
Simon Yarmak from Stifel set a target price of $10.5 on 05/08/2025
Nicholas Yulico from Scotiabank set a target price of $8.0 on 04/16/2025

Full Release

VIRGINIA BEACH, Va., July 22, 2025 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) (“Armada Hoffler” or the “Company”) announced the closing its inaugural private placement of $115 million in senior unsecured notes. The notes were issued in three tranches with maturities of 3, 5, and 7 years, bearing a blended interest rate of 5.86% and a weighted average maturity of 5.3 years.

Proceeds from the offering will be used for general corporate purposes and to refinance existing debt.

“This offering provides long-term capital at a fixed rate and enhances our balance sheet flexibility,” said Matthew Barnes-Smith, Chief Financial Officer of Armada Hoffler. “We view this as a constructive step in our ongoing efforts to diversify capital sources and support our long-term strategy.”

In January 2025, Morningstar DBRS reaffirmed Armada Hoffler’s BBB credit rating and revised its outlook to stable, citing the Company’s improved leverage profile and diversified real estate portfolio.

The offer and sale of the notes and the related guarantees have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state or other jurisdiction and the notes may not be offered or sold in the United States or any other jurisdiction absent registration or an exemption from the registration requirements of the Securities Act and the applicable securities laws of any state or other jurisdiction. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.

About Armada Hoffler

Armada Hoffler (NYSE: AHH) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. We also provide general construction and development services to third-party clients, in addition to developing and building properties to be placed in our stabilized portfolio. Founded in 1979 by Daniel A. Hoffler, Armada Hoffler has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information visit ArmadaHoffler.com.

Forward-Looking Statements

Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These statements relate to the Company’s the anticipated use of the net proceeds from the private placement of the notes. No assurance can be given that the net proceeds from the private placement will be used as indicated. The application of the net proceeds is subject to numerous conditions, many of which are beyond the control of the Company, including, market conditions, general economic conditions and other factors, including those set forth under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and those set forth in other documents filed by the Company from time to time with the Securities and Exchange Commission.

Contact:

Chelsea Forrest
Armada Hoffler
Vice President of Corporate Communications and Investor Relations
Email: [email protected]
Phone: (757) 612-4248