AHH - Armada Hoffler Properties: Why I Am Buying This 7%-Yielder

2024-07-12 18:32:43 ET

Summary

• Armada Hoffler Properties, Inc. is a small-cap REIT with diversified exposure to office, retail, and residential properties.
• Armada Hoffler Properties has underperformed in the REIT market due to its focus on office properties and relatively elevated debt levels.
• However, if we dig deeper into the details, we will see that the underlying risks are not that high.
• In the context of P/FFO of 9x, this creates an opportunity.
• In this article, I elaborate on the main reasons why I am going long Armada Hoffler Properties stock.

Armada Hoffler Properties, Inc. ( AHH ) is a relatively small-cap real estate investment trust, or REIT, with a market cap of just below $1 billion. AHH is classified as a diversified REIT due to its exposure to several property types such as office, retail, and residential. While having a mix of different real estate segments in a portfolio is not that uncommon, what is quite unique about AHH is that it is a vertically integrated enterprise providing also general construction and development services to third-party clients....

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