Armada Hoffler Announces Morningstar Upgrades Outlook to Stable and Confirms BBB Credit Rating

Company Overview - Armada Hoffler is a vertically integrated, self-managed real estate investment trust (REIT) with over four decades of experience in developing, building, acquiring, and managing high-quality office, retail, and multifamily properties primarily in the Mid-Atlantic and Southeastern United States [2] - The company also provides general construction and development services to third-party clients and develops properties for its stabilized portfolio [2] - Founded in 1979 by Daniel A Hoffler, Armada Hoffler has elected to be taxed as a REIT for US federal income tax purposes [2] Credit Rating and Outlook - Morningstar upgraded Armada Hoffler's outlook to stable and confirmed its BBB credit rating, reflecting the company's improving leverage profile and diversified real estate portfolio [1][3] - The stable trend is supported by the completion and delivery of Allied, a mixed-use development in Baltimore, which includes 312 multifamily units, retail space, and a parking garage [1] - Allied is expected to be completed in Q1 2025 and stabilized by Q3 2026, becoming a top asset in the portfolio by net operating income (NOI) contribution and enhancing geographical and asset type diversification [1] Financial and Operational Highlights - The improving leverage profile is largely due to a $103 5 million net proceed equity raise in September 2024, with funds used to repay debt [1] - The enhanced business risk assessment factor allows greater financial flexibility within the respective credit rating category [1]