Dividend Coverage: This Full-Service REIT has a Dividend Yield of 5.58%; Will Trade Ex-Dividend on September 26, 2017
LONDON, UK / ACCESSWIRE / September 25, 2017 / Pro-Trader Daily takes a closer look at Armada Hoffler Properties, Inc. (NYSE: AHH) ("Armada Hoffler") as the Company's stock will begin trading ex-dividend on September 26, 2017. In order to capture the dividend payout, investors must purchase the stock one day prior to the ex-dividend date that is by latest at the end of trading session on September 25, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at:
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Dividend Declared
On August 04, 2017, Armada Hoffler announced that its Board of Directors declared a cash dividend of $0.19 per common share for Q3 2017. The third quarter dividend will be payable in cash on October 05, 2017, to stockholders of record on September 27, 2017.
Armada Hoffler's indicated dividend represents a yield of 5.58%, which is substantially above the average dividend yield of 3.18% for the financial sector. The Company has raised its dividend for three consecutive years.
Dividend Insights
Armada Hoffler has a dividend payout ratio of 77.6%, which indicates that the Company distributes approximately $0.78 for every $1.00 earned. The dividend payout ratio reflects how much amount a Company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, Armada Hoffler is forecasted to report earnings of $0.42 for the next year compared to the Company's annualized dividend of $0.76. Armada Hoffler is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.
Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization to earnings and subtracting any gains on sales which provides a better picture of company's profitability and capacity to pay and to sustain dividends. For instance, Armada Hoffler reported net income of $4.9 million, or $0.08 per diluted share, for the quarter ended June 30, 2017, compared to net income of $3.1 million, or $0.06 per diluted share, for the quarter ended June 30, 2016. While the Company's Normalized FFO were $14.7 million, or $0.25 per diluted share, for the quarter ended June 30, 2017, compared to Normalized FFO of $12.5 million, or $0.26 per diluted share, for the quarter ended June 30, 2016. The FFO indicates that the Company should be able to sufficiently cover its dividend payout.
As of June 30, 2017, Armada Hoffler had cash worth $18.59 million compared to $21.94 million at December 31, 2016. As of June 30, 2017, the Company had $470 million of total debt outstanding, including $28 million outstanding under its revolving credit facility. On May 12, 2017, the Company completed an underwritten public offering of 6.9 million shares of its common stock at a public offering price of $13.00 per share, which resulted in net proceeds of $85.3 million. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.
About Armada Hoffler
Armada Hoffler Properties, Inc. is a full-service real estate Company with extensive experience developing, building, acquiring and managing high-quality, institutional-grade office, retail, and multifamily properties in attractive markets located primarily in the Mid-Atlantic and Southeastern US.
Stock Performance
On Friday, September 22, 2017, the stock closed the trading session flat at $13.61. A total volume of 239.33 thousand shares have exchanged hands. Armada Hoffler's stock price advanced 1.64% in the last one month and 1.34% in the past three months. The stock is trading at a PE ratio of 33.60 and has a dividend yield of 5.58%. The stock currently has a market cap of $849.94 million.
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