Armada Hoffler Announces Strategic Steps in Executing Its Balance Sheet Management Strategy

Core Viewpoint - Armada Hoffler is taking strategic steps to reduce exposure to variable rate debt as part of its balance sheet management strategy, aiming for prudent financial management and risk mitigation [1]. Group 1: Financial Management Initiatives - The company executed a $150 million floating-to-fixed rate swap effective January 2, 2025, with a fixed rate of 2.5$4.6 million, achieving 100% hedging on its variable rate debt exposure [3]. - Armada Hoffler repaid $45.6 million of secured variable-rate debt with a weighted average effective interest rate of 6.80$29.4 million agency loan fixed at 5.53% interest-only through December 2029, replacing a previous variable-rate loan with an effective rate of 6.4% [3]. - The company paid down its SOFR referenced revolving credit facility by $19.0 million through December 31, 2024 [3]. Group 2: Company Overview - Armada Hoffler is a vertically integrated, self-managed real estate investment trust (REIT) with over 40 years 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, in addition to developing properties for its stabilized portfolio [2].