NYSE:AHH

Stock Analysis Report

Armada Hoffler Properties

Executive Summary

Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States.

Rewards

Trading at 22.5% below its fair value

Earnings grew by 11.9% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -2.6% per year for the next 3 years

Unstable dividend track record

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has Armada Hoffler Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AHH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

AHH

-2.9%

US REITs

1.3%

US Market


1 Year Return

21.7%

AHH

11.0%

US REITs

19.4%

US Market

Return vs Industry: AHH exceeded the US REITs industry which returned 11% over the past year.

Return vs Market: AHH exceeded the US Market which returned 19.4% over the past year.


Shareholder returns

AHHIndustryMarket
7 Day0.4%-2.9%1.3%
30 Day5.0%-1.3%2.6%
90 Day2.8%-1.7%5.0%
1 Year28.1%21.7%15.7%11.0%22.0%19.4%
3 Year52.6%29.9%33.2%16.5%46.8%37.3%
5 Year156.3%92.4%49.1%18.2%66.3%48.0%

Price Volatility Vs. Market

How volatile is Armada Hoffler Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Armada Hoffler Properties undervalued compared to its fair value and its price relative to the market?

22.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AHH ($18.53) is trading below our estimate of fair value ($23.92)

Significantly Below Fair Value: AHH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AHH is poor value based on its PE Ratio (48.1x) compared to the REITs industry average (37x).

PE vs Market: AHH is poor value based on its PE Ratio (48.1x) compared to the US market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: AHH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AHH is overvalued based on its PB Ratio (2.5x) compared to the US REITs industry average (1.9x).


Next Steps

Future Growth

How is Armada Hoffler Properties forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AHH's earnings are forecast to decline over the next 3 years (-2.6% per year).

Earnings vs Market: AHH's earnings are forecast to decline over the next 3 years (-2.6% per year).

High Growth Earnings: AHH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AHH's revenue (4.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: AHH's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AHH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Armada Hoffler Properties performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AHH has a large one-off gain of $7.4M impacting its September 30 2019 financial results.

Growing Profit Margin: AHH's current net profit margins (12.4%) are higher than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: AHH's earnings have grown by 1.3% per year over the past 5 years.

Accelerating Growth: AHH's earnings growth over the past year (11.9%) exceeds its 5-year average (1.3% per year).

Earnings vs Industry: AHH earnings growth over the past year (11.9%) exceeded the REITs industry 8.3%.


Return on Equity

High ROE: AHH's Return on Equity (4.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Armada Hoffler Properties's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AHH has a high level of physical assets or inventory.

Debt Coverage by Assets: AHH's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: AHH's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AHH has a sufficient allowance for bad loans.

Low Risk Liabilities: AHH reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AHH has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AHH has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AHH has an appropriate level of bad loans.


Next Steps

Dividend

What is Armada Hoffler Properties's current dividend yield, its reliability and sustainability?

4.53%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Armada Hoffler Properties before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.8%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: AHH's dividend (4.53%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: AHH's dividend (4.53%) is in the top 25% of dividend payers in the US market (3.68%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AHH has been paying a dividend for less than 10 years.

Growing Dividend: AHH's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.3%), AHH's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AHH's dividends in 3 years are forecast to be thoroughly covered by earnings (1% payout ratio).


Next Steps

Management

What is the CEO of Armada Hoffler Properties's salary, the management and board of directors tenure and is there insider trading?

7.9yrs

Average management tenure


CEO

Lou Haddad (61yo)

7.9yrs

Tenure

US$1,708,999

Compensation

Mr. Louis S. Haddad, also known as Lou, serves as President, Chief Executive Officer and Director of Armada Hoffler Properties, Inc. Mr. Haddad has more than 25 years of experience in the commercial real e ...


CEO Compensation Analysis

Compensation vs Market: Lou's total compensation ($USD1.71M) is below average for companies of similar size in the US market ($USD3.89M).

Compensation vs Earnings: Lou's compensation has increased by more than 20% in the past year.


Management Age and Tenure

7.9yrs

Average Tenure

59yo

Average Age

Experienced Management: AHH's management team is seasoned and experienced (7.9 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

69.5yo

Average Age

Experienced Board: AHH's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$229,65007 Mar 19
Louis Haddad
EntityIndividual
Role
Chief Executive Officer
President
Shares15,000
Max PriceUS$15.31

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.5%.


Management Team

  • Daniel Hoffler (71yo)

    Executive Chairman of the Board

    • Tenure: 6.6yrs
    • Compensation: US$553.95k
  • Shawn Tibbetts

    Chief Operating Officer

    • Tenure: 0.3yrs
  • Eric Apperson (55yo)

    President of Construction

    • Tenure: 0yrs
    • Compensation: US$713.05k
  • Lou Haddad (61yo)

    President

    • Tenure: 7.9yrs
    • Compensation: US$1.71m
  • Chris Harvey (45yo)

    Executive Vice President of Construction & Business Development

    • Tenure: 0yrs
  • Mike O’Hara (59yo)

    CFO, Treasurer & Secretary

    • Tenure: 7.9yrs
    • Compensation: US$656.87k
  • John Davis (59yo)

    Executive Vice President of Construction

    • Tenure: 0yrs
  • Shelly Hampton (51yo)

    President of Asset Management

    • Tenure: 7.9yrs
    • Compensation: US$557.01k
  • Alan Hunt (59yo)

    Executive Vice President of Construction

    • Tenure: 12.9yrs
  • Bernard Shumate

    Executive VP & Head of Development

    • Tenure: 1.9yrs

Board Members

  • John Snow (80yo)

    Lead Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$86.40k
  • A. Kirk (71yo)

    Vice Chairman of the Board

    • Tenure: 6.6yrs
    • Compensation: US$235.20k
  • Daniel Hoffler (71yo)

    Executive Chairman of the Board

    • Tenure: 6.6yrs
    • Compensation: US$553.95k
  • George Allen (67yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$76.40k
  • James Cherry (68yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$81.40k
  • Eva S. Hardy (74yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$76.40k
  • Lou Haddad (61yo)

    President

    • Tenure: 7.9yrs
    • Compensation: US$1.71m
  • James Carroll (51yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$76.40k
  • Dorothy McAuliffe

    Independent Director

    • Tenure: 0.3yrs

Company Information

Armada Hoffler Properties, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Armada Hoffler Properties, Inc.
  • Ticker: AHH
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: US$1.419b
  • Shares outstanding: 76.59m
  • Website: https://www.armadahoffler.com

Number of Employees


Location

  • Armada Hoffler Properties, Inc.
  • 222 Central Park Avenue
  • Suite 2100
  • Virginia Beach
  • Virginia
  • 23462
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AHHNYSE (New York Stock Exchange)YesNew Common StockUSUSDMay 2013
AHH.PRANYSE (New York Stock Exchange)6.75 CUM PFD AUSUSDJun 2019

Biography

Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 01:03
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.