VIRGINIA BEACH, Va., April 09, 2020 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (AHH:NYSE) announced today that further activity under its 2020 asset recycling program has been indefinitely suspended.
The Company had previously announced plans to acquire approximately $135 million of assets during 2020 by redeploying and reinvesting proceeds from anticipated dispositions. The Company announced today that its agreement to sell a portfolio of seven grocery-anchored retail assets for $106.5 million to an institutional buyer has been terminated. As a result, the Company has indefinitely postponed all asset acquisition activity.
“The current coronavirus pandemic has served to emphasize the essential role that grocery-anchored retail centers play in our communities,” said Louis Haddad, President and Chief Executive Officer. “In addition to our multifamily and office properties, our portfolio of high-quality, well-located neighborhood centers, anchored by market dominant high-credit grocers like Kroger and Ahold Delhaize, are precisely the kind of retail assets to own in times like these. So, while it’s unfortunate that the portfolio transaction did not close, we are more than happy to continue owning the real estate. As with our recent decision to defer certain development projects, it’s prudent to postpone any near-term planned acquisition activity in order to preserve balance sheet flexibility.”
About Armada Hoffler Properties, Inc.
Armada Hoffler Properties, Inc. (AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. Founded in 1979 by Daniel A. Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information, visit ArmadaHoffler.com.
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 statements. The Company’s actual future results and trends may differ materially from expectations depending on a variety of factors discussed in the Company’s filings with the Securities and Exchange Commission. These factors include, without limitation: (a) the impact of the coronavirus (Covid-19) pandemic on macroeconomic conditions and economic conditions in the markets in which the Company operates, including, among others: (i) disruptions in, or a lack of access to, the capital markets or disruptions in the Company’s ability to draw amounts under its credit facility or to borrow amounts subject to existing construction loan commitments, (ii) adverse impacts to the Company’s tenants’ and other third parties’ businesses that adversely affect the ability and willingness of the Company’s tenants other third parties to satisfy their obligations to the Company, (iii) the ability and willingness of the Company’s tenants to renew their leases with the Company upon expiration of the leases or to re-lease the Company’s properties on the same or better terms in the event of nonrenewal or early termination of existing leases, and (iv) federal, state and local government initiatives to mitigate the impact of the coronavirus pandemic, including additional restrictions on business activities, shelter-in-place orders and other restrictions, and the timing and amount of economic stimulus or other initiatives; (b) the Company’s ability to consummate previously disclosed acquisitions and dispositions, or to commence construction on development projects, in each case on the timeframes and on terms currently anticipated; (c) the Company’s ability to accurately assess and predict the impact of the coronavirus pandemic on its results of operations, financial condition, acquisition and disposition activities and growth opportunities; and (d) the information under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and in other filings the Company makes from time to time with the Securities and Exchange Commission.
Michael P. O’Hara
Armada Hoffler Properties, Inc.
Chief Financial Officer, Treasurer, and Secretary
Phone: (757) 366-6684