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VIRGINIA BEACH, Va. - Armada Hoffler Properties, Inc. (NYSE: NYSE:AHH) has launched a public offering of 7 million shares of common stock, the company announced today. In addition, the underwriters have a 30-day option to purchase up to 1.05 million additional shares. The real estate investment trust plans to use the proceeds to repay several loans and for general corporate purposes.
The offering aims to address debts secured by Chronicle Mill, Premier, and Market at Mill Creek, as well as to reduce the outstanding amounts on the company's revolving credit facility. Any remaining funds will be allocated to general corporate expenses and working capital.
Jefferies, BofA Securities, and Barclays are acting as joint book-running managers for the offering. Interested parties can obtain copies of the preliminary prospectus supplement and accompanying prospectus from these financial institutions.
This offering is made under a shelf registration statement on Form S-3, which was filed with the Securities and Exchange Commission (SEC) and automatically went into effect on February 28, 2023. A prospectus supplement detailing the offering will also be filed with the SEC.
Armada Hoffler, founded in 1979, is a vertically integrated, self-managed REIT that specializes in developing, building, acquiring, and managing high-quality properties across various sectors. The company also provides construction and development services to third-party clients.
The current press release contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ from those projected. The completion of the offering and the application of the net proceeds are subject to market and economic conditions, as well as other factors beyond the company's control.
Prospective investors are advised to read the prospectus and other documents filed with the SEC for a more complete understanding of the company and the offering. This press release is not an offer to sell or a solicitation of an offer to buy any securities, and there will be no sale of these securities in any jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of that jurisdiction.
The information in this article is based on a press release statement from Armada Hoffler Properties, Inc.
In other recent news, Armada Hoffler Properties, Inc. has declared dividends for its common and preferred shares. The company announced 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% Series A Cumulative Redeemable Perpetual Preferred Stock.
In addition, Armada Hoffler reported strong financial results for the second quarter of 2024 and projected high-end earnings by the end of the year. The company's portfolio has seen high tenant demand and improved rents, particularly in the office segment.
Armada Hoffler's construction division posted its highest-ever gross profit, and its mixed-use ecosystems, such as Southern Post and Harbor Point, are expanding, with three projects expected to complete by year-end. A recent sale of Solace City Park at a mid-5% cap rate indicates a healthy market.
There's also been a successful transition in leadership, with Shawn Tibbetts set to assume the CEO role in the upcoming year. These developments are part of Armada Hoffler's continued focus on optimizing the balance sheet and creating long-term shareholder value.
InvestingPro Insights
As Armada Hoffler Properties, Inc. (NYSE: AHH) embarks on a new public offering, potential and current investors may find the latest metrics and insights from InvestingPro invaluable in making informed decisions. With a market capitalization of $1.06 billion, the company has demonstrated a commitment to shareholder returns, having increased its dividend for three consecutive years. This dedication is further underscored by a substantial dividend yield of 6.83%, as of the last twelve months leading up to Q2 2024.
InvestingPro Tips suggest that while Armada Hoffler has not been profitable over the last twelve months, analysts are optimistic about the company's prospects, predicting profitability for the year. Furthermore, the company's liquid assets are reported to exceed its short-term obligations, indicating a strong position to meet its immediate financial liabilities.
On the valuation front, Armada Hoffler is trading at a low revenue valuation multiple, with a revenue growth of 23.67% in the last twelve months leading up to Q2 2024. This growth could be a compelling factor for investors looking for expanding operations within the REIT sector. With 8 additional InvestingPro Tips available for Armada Hoffler Properties, Inc., investors can delve deeper into the company's financial health and future prospects by visiting https://www.investing.com/pro/AHH.
These insights and data points provide a snapshot of Armada Hoffler's financial landscape as it seeks to strengthen its balance sheet through the latest stock offering. As the company continues to navigate the real estate market, these metrics will be crucial for investors monitoring the impact of the offering on the company's financial position and market performance.
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