VIRGINIA BEACH, Va., Jan. 25, 2024 (GLOBE NEWSWIRE) — Armada Hoffler (NYSE: AHH) announced that its BBB credit rating has been reaffirmed by Morningstar DBRS, a globally recognized credit rating agency. The Company acknowledges a shift in the rating trend from stable to negative. In shifting the rating trend, Morningstar DBRS cited the Company’s short-term elevation of the leverage ratio. The Company’s short-term elevation of the leverage ratio is mainly driven by the recent acquisition of The Interlock property and the Company’s self-funded development pipeline.
In its analysis of the Company, Morningstar DBRS cited several factors supporting the rating confirmation: (1) the Company’s market position in the Mid-Atlantic region, (2) the asset quality of the Company’s multifamily and office portfolio, (3) the quality and diversification of the Company’s commercial tenant base, and (4) the longer-term weighted-average lease terms for its office and retail assets.
“We are pleased that Morningstar DBRS has reiterated our BBB credit rating,” said Louis Haddad, President and Chief Executive Officer of Armada Hoffler. “Our reaffirmed rating is an independent testament to the quality of our diversified and mixed-use portfolio, the durability and underlying credit worthiness of our tenant base, and the experience and conservative nature of our management team. Furthermore, it reflects the dedication of our team and our commitment to delivering value to our shareholders. We acknowledge the drivers of the negative trend and are confident in our ability to address these temporary financial risks as we seek to grow the portfolio.”
The decision to acquire The Interlock property was a key part of our strategic growth plan to align with Armada Hoffler’s growth objectives. The mixed-use property, based in the West Midtown area of Atlanta, complements the Company’s existing portfolio and strategic vision. As previously committed, the Company has fully funded its development pipeline without raising equity, showcasing the Company’s robust financial position and ability to navigate challenges in current market conditions.
More information regarding Armada Hoffler’s credit rating assignment can be found in the Morningstar DBRS press release dated January 25, 2024 and at https://dbrs.morningstar.com/.
About Armada Hoffler
Armada Hoffler (NYSE: AHH) is a vertically integrated, self-managed real estate investment trust with over four decades of experience developing, building, acquiring, and managing high-quality office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. We also provide general construction and development services to third-party clients, in addition to developing and building properties to be placed in our stabilized portfolio. Founded in 1979 by Daniel A. Hoffler, Armada Hoffler has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information visit ArmadaHoffler.com.
Forward-Looking Statements
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These statements relate to Armada Hoffler’s pursuit of growth opportunities. The forward-looking statements presented herein are based on the Company’s current expectations. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and the other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company’s expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required by applicable law.
Contact:
Chelsea Forrest
Armada Hoffler
Director of Corporate Communications and Investor Relations
Email: CForrest@armadahoffler.com
Phone: (757) 612-4248
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