Armada Hoffler Has Proven a Non-Traditional REIT Model Works in the Public Markets

Lou Haddad, president and CEO of Armada Hoffler (NYSE: AHH), participated in a video interview at Nareit’s REITweek: 2023 Investor Conference, held in New York June 6-8.

Haddad discussed the factors that led Armada Hoffler’s board to raise the dividend above pre-pandemic levels, how the acquisition of The Interlock in Atlanta’s West Midtown has added to the portfolio, and some of the things he is most proud of since the REIT’s IPO a decade ago.

• The dividend raise was “simply bringing it back into line with our stated policy in that we want to distribute to our shareholders about 80% of our free cash flow…our investors have come to depend on us to stick to that policy.”
• The Interlock in Atlanta “checks all the boxes for us. It’s mixed-use, it’s infill in a very dynamic and growing market with a tremendous amount of upside.” It also provides Armada Hoffler with “critical mass” in Atlanta.
• Armada Hoffler has tripled its market cap since it went public in 2013 and has “proven that a non-traditional REIT model can work in the public markets.” The REIT is vertically integrated, spans several asset classes, and has a substantial third party construction arm. “It’s great to see that the public markets have accepted that.”