AHH - Armada Hoffler Properties: I Just Bought The 8.2% Dividend Yield

2024-03-27 13:00:58 ET

Summary

• Armada Hoffler Properties just hiked its quarterly cash dividend by 5.1%, resulting in an 8.2% forward dividend yield.
• This is 151% covered by normalized FFO with just 2% of AHH's office portfolio leases expiring in 2024.
• The 96.1% weighted portfolio occupancy at the end of the fourth quarter is attractive with AHH now trading for 8x the midpoint of its guided normalized FFO range for 2024.

Armada Hoffler Properties ( AHH ) last declared a quarterly cash dividend of $0.205 per share , a 5.1% increase from its prior declaration and $0.82 per share annualized for an 8.2% dividend yield. AHH hiking its dividend against a REIT zeitgeist that has been characterized by collapsed multiples, precarious dividend coverage metrics, and episodic dividend suspensions has rendered the ticker a bright spot in a cloudy picture. The hike was ahead of the 4% dividend increase seen across the broader equity REIT space and materially ahead of office REITs. The forward dividend yield now sits ahead of any point in AHH's history as a public company, only partially eclipsed by the aberration that was the onset of the pandemic. Is the yield safe? The market does not think so as AHH pushes lower but I'm now buying. I last covered the ticker and its preferreds ( AHH.PR.A ) a year ago....

For further details see: