Armada Hoffler Properties, Inc. AHH recently priced 3 million underwritten common shares, which fetched net proceeds of around $30.6 million. This move is expected to increase the Virginia Beach, VA-based residential real estate investment trust’s (“REIT”) liquidity strength.
Armada Hoffler Properties is engaged in developing, building, owning and managing office, retail and multifamily properties primarily in the U.S. The REIT plans to utilize the proceeds from this offering to reduce part of the outstanding borrowings under its unsecured revolving credit facility. In fact, this will allow Armada Hoffler Properties to re-borrow amounts for partial funding of the recently announced acquisition of 11 retail properties. Subject to the fulfillment of certain customary closing conditions, the public offering will likely close on Dec 9, 2015.
Notably, Armada Hoffler Properties lately inked a deal to buy a portfolio of 11 retail centers situated in the Mid-Atlantic and South-Central U.S. for around $170.5 million in cash. The portfolio, located along the I-85 corridor between Raleigh-Durham, NC and Greenville, SC, spans 1.1 million square feet of space and was 94% occupied as of Oct 31, 2015.
Armada Hoffler Properties currently carries a Zacks Rank #2 (Buy).
Investors interested in the residential REIT space may also consider stocks like Preferred Apartment Communities, Inc. APTS, Apartment Investment and Management Company AIV and Avalonbay Communities Inc. AVB. While Preferred Apartment Communities sports a Zacks Rank #1 (Strong Buy), both Apartment Investment and Management Company and Avalonbay Communities hold the same Zacks Rank as Armada Hoffler Properties.
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