VIRGINIA BEACH, Va. - Armada Hoffler Properties Inc. (NYSE:AHH), a real estate investment trust, announced a change in leadership set to take place in the upcoming year. Shawn Tibbetts, currently serving as the President and Chief Operating Officer, will assume the role of Chief Executive Officer effective January 1, 2025. The transition comes as the current CEO, Lou Haddad, is set to retire at the end of 2024 but will continue to serve as the Executive Chairman of the Board of Directors.
Tibbetts, who has been with Armada Hoffler since 2019, played a pivotal role in the company's growth, including a 45% increase in the portfolio's net operating income and overseeing transactions exceeding $1.2 billion. His tenure at the company has been marked by a deliberate succession planning process, ensuring a smooth transition of leadership. His prior experience includes a role as President and COO at The Port of Virginia.
Under Haddad's 25-year tenure as CEO, Armada Hoffler achieved significant growth, including the company's initial public offering and its expansion into a publicly-traded REIT. The company's portfolio now spans across eight states with an enterprise value of $2.6 billion. Haddad's leadership also saw the development of the multi-million-dollar Town Center of Virginia Beach.
The Board of Directors expects to appoint Tibbetts to the Board upon his elevation to CEO. Eva Teig Hardy, Lead Independent (LON:IOG) Director of the Board, expressed confidence in Tibbetts' ability to lead the company forward. Tibbetts himself is committed to building on the firm's foundation, focusing on improving the income stream and balance sheet.
Armada Hoffler, founded in 1979, has a long-standing history in developing, acquiring, and managing high-quality properties. The company also provides construction services to third-party clients and has chosen to be taxed as a REIT for U.S. federal income tax purposes.
The information in this article is based on a press release statement from Armada Hoffler. The company's forward-looking statements are subject to risks and uncertainties, and actual results may differ from those projected. Armada Hoffler's succession planning is expected to position the company for continued success and sustainability.
In other recent news, Armada Hoffler, the real estate investment trust, reported stable financial results for the third quarter of 2024. The company announced a normalized funds from operations (FFO) of $0.35 per diluted share, meeting expectations, and a standard FFO of $0.14 per diluted share. Additionally, Armada Hoffler highlighted its successful common equity offering and the substantial growth in its portfolio with the addition of approximately 900 multifamily units.
The company's transition of leadership to President/COO Shawn Tibbetts is progressing smoothly and is expected to be completed in early 2025. Despite minor delays in development projects, strong occupancy rates across segments were reported, with retail at 96.2%, multifamily at 95.3%, and commercial at 95.6%.
Armada Hoffler is also actively exploring capital allocation opportunities and focusing on property net operating income growth and balance sheet strength. The company has secured a lease with Stifel Financial Corp (NYSE:SF) for 35,000 square feet at Wills Wharf, indicating a positive outlook for the upcoming quarters. These are some of the recent developments in the company's operations and strategic initiatives.
InvestingPro Insights
As Armada Hoffler Properties Inc. (NYSE:AHH) prepares for a leadership transition, investors may find value in examining the company's financial health and market performance. According to InvestingPro data, AHH boasts a market capitalization of $1.12 billion, reflecting its significant presence in the real estate sector.
The company's commitment to shareholder value is evident in its dividend policy. An InvestingPro Tip highlights that AHH "pays a significant dividend to shareholders," with a current dividend yield of 7.47%. This attractive yield could be particularly appealing to income-focused investors in the current market environment. Moreover, the company has demonstrated a commitment to growing its dividend, with another InvestingPro Tip noting that AHH "has raised its dividend for 3 consecutive years."
Despite these positive indicators, it's worth noting that AHH faces some challenges. The company was not profitable over the last twelve months, as reflected in its negative P/E ratio. However, an InvestingPro Tip suggests that "analysts predict the company will be profitable this year," which could signal a potential turnaround in financial performance under the new leadership.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide deeper insights into AHH's investment potential. These additional tips, along with real-time metrics and expert analysis, are available to InvestingPro subscribers, offering a more nuanced view of the company's prospects as it navigates this leadership transition.
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