VIRGINIA BEACH, Va., July 22, 2019 – Shares of Armada Hoffler Properties Inc. (NYSE: AHH) declined -0.95% to $16.69. The stock traded total volume of 267.602K shares higher than the average volume of 221.09K shares.
Armada Hoffler Properties Inc. (AHH) reported net income for the first quarter reduced to $6.50M contrast to $7.00M for the first quarter of 2018. The period-over-period change was mainly because of a $2.40M swing in the change in fair value of interest rate derivatives and a $1.50M increase in interest expense. This was partially offset by a $3.10M increase in interest income and a boost in property net operating income because of 2018 and 2019 property acquisitions and certain development projects coming online.
Normalized FFO for the first quarter increased to $18.50M contrast to $15.40M for the first quarter of 2018. FFO for the first quarter increased to $16.60M contrast to $16.30M for the first quarter of 2018. The period-over-period changes in Normalized FFO and FFO were positively influenced by property acquisitions, completion of development projects, and higher interest income. These increases in Normalized FFO and FFO were partially offset by increased interest expense.
At the end of the first quarter, the Company’s office, retail and multifamily core operating property portfolios were 94.9%, 96.1% and 97.2% occupied, respectively.
Total construction contract backlog was $160.90M at the end of the first quarter.
Balance Sheet and Financing Activity:
As of March 31, 2019, the Company had $744.10M of total debt outstanding, counting $91.00M outstanding under its revolving credit facility. Total debt outstanding excludes unamortized GAAP fair value adjustments and deferred financing costs. About 56.8% of the Company’s debt had fixed interest rates or was subject to interest rate swaps as of March 31, 2019. After considering LIBOR interest rate caps with strike prices at or below 250 basis points as of March 31, 2019, 97.1% of the Company’s debt was either fixed or hedged. There is no debt maturing during the remainder of 2019.
AHH has the market capitalization of $1.18B and its EPS growth ratio for the past five years was -7.20%. The return on assets ratio of the Company was 1.40% while its return on investment ratio stands at 3.30%. Price to sales ratio was 6.22 while 86.40% of the stock was owned by institutional investors.