Real estate investment trust (“REIT”) – Armada Hoffler Properties Inc. AHH – has reaped $35.6 million by disposing Whetstone Apartments, located in downtown Durham, North Carolina. This sale is the company’s third one in the past year, as Armada Hoffler strategically sells non-core assets to reap capital and redeploy them for its growth needs.
Situated near the Duke University, this new apartment complex has 204 units. The company has achieved a profit above 20% from this move which allows it to monetize the wholesale-to-retail spread on development projects.
As a matter of fact, Armada Hoffler is engaged in construction, ownership and management of premium, institutional-grade office, retail and multifamily properties. These properties are located in key markets throughout the Mid-Atlantic U.S.
Armada Hoffler has been a steady performer. In the last reported quarter, the company posted an earnings surprise of 11.76% and has, in fact, exceeded the Zacks Consensus Estimate in three out of last four quarters with an average surprise of 6.69%.
The company has witnessed solid earnings estimate revision activity over the past month, signifying that analysts are becoming a bit more bullish on the firm’s prospects in both the short and long term.
Specifically, over the past month, current quarter estimates have increased to 21 cents per share from 20 cents, while the current year estimates have climbed to 86 cents per share from 85 cents. As a result, Armada Hoffler currently sports a Zacks Rank #1 (Strong Buy).
Investors interested in the REIT industry may consider stocks like Campus Crest Communities, Inc. CCG, Equity LifeStyle Properties, Inc. ELS and Post Properties Inc. PPS. All these stocks hold a Zacks Rank #2 (Buy).
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