VIRGINIA BEACH, Va. - Armada Hoffler Properties, Inc. (NYSE: NYSE:AHH), a real estate investment trust (REIT), has declared dividends for its shareholders, as announced today by the company. The Board of Directors has approved a cash dividend of $0.205 per common share for the third quarter, scheduled for payment on October 3, 2024, to stockholders of record as of September 25, 2024.
Additionally, a cash dividend of $0.421875 per share has been declared on the company's 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock. This dividend is payable on October 15, 2024, to shareholders on record by October 1, 2024.
Armada Hoffler, with over four decades in the industry, is known for its integrated approach to real estate, encompassing development, construction, acquisition, and management of institutional-grade office, retail, and multifamily properties primarily in the Mid-Atlantic and Southeastern United States. The company, founded in 1979, also offers development and general contracting services to third-party clients.
The company has been structured to be taxed as a REIT, which necessitates the distribution of at least 90% of taxable income to its shareholders annually in the form of dividends. This structure allows investors to partake in the company's income-generating real estate investments without having to buy or finance properties directly.
Today's announcement regarding the dividends is based on a press release statement from Armada Hoffler Properties, Inc. This declaration reflects the company's ongoing commitment to deliver value to its shareholders through regular dividend payments. Stockholders are advised to mark the respective dates of record to ensure they receive the forthcoming dividends.
In other recent news, Armada Hoffler reported strong financial results in the second quarter of 2024 and projected high-end earnings by the year's end. The company's portfolio has seen high tenant demand and improved rents, particularly in the office segment, contributing to these positive results. There's also been a successful transition in leadership, with Shawn Tibbetts set to assume the CEO role in the upcoming year.
In addition to these developments, Armada Hoffler's construction division posted its highest-ever gross profit. The company's 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.
These developments are part of Armada Hoffler's continued focus on optimizing the balance sheet and creating long-term shareholder value. With a positive market outlook and strong performance across all property segments, the company's future seems promising, according to analysts.
InvestingPro Insights
Armada Hoffler Properties, Inc. (NYSE: AHH) continues its trend of rewarding shareholders, as evidenced by the recent dividend announcement. In the context of InvestingPro Insights, several metrics and tips are noteworthy for investors considering AHH's financial health and future prospects:
InvestingPro Tips suggest that Armada Hoffler has raised its dividend for three consecutive years, demonstrating a commitment to returning value to shareholders. Additionally, the company is expected to see growth in net income this year, which could further solidify its financial position and potentially lead to sustained or increased dividend payments in the future. For those interested in exploring further, there are a total of 7 InvestingPro Tips available for AHH at https://www.investing.com/pro/AHH.
From a data perspective, the company's market capitalization stands at $1.06 billion, reflecting its size and stability within the market. Despite a negative P/E ratio of -273.39 for the last twelve months as of Q2 2024, which typically indicates that the company has not been profitable, analysts predict that Armada Hoffler will be profitable this year. The dividend yield as of the last recorded date is quite significant at 6.96%, which is attractive to income-focused investors, especially when considering the company's history of dividend growth, which was 5.13% over the last twelve months as of Q2 2024.
These insights from InvestingPro suggest that while AHH has faced profitability challenges, the outlook for income growth and a stable dividend payout may be positive for shareholders. The company's ability to maintain a high dividend yield and anticipated return to profitability could be key factors for investors to consider.
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