Armada Hoffler, a real estate investment trust (REIT), has successfully closed its inaugural private placement of $115 million in senior unsecured notes. The notes were issued in three tranches with maturities of 3, 5, and 7 years, and they bear a blended interest rate of 5.86% with a weighted average maturity of 5.3 years. The proceeds from this offering will be utilized for general corporate purposes and to refinance existing debt.
This move is seen as improving the company's leverage profile and diversifying its real estate portfolio. In January 2025, Morningstar DBRS reaffirmed Armada Hoffler’s BBB credit rating and revised its outlook to stable, citing the company’s improved leverage profile and diversified real estate portfolio.
As a result of this successful private placement, the company now has long-term capital at a fixed rate, which enhances its balance sheet flexibility. This is in line with the company’s ongoing efforts to diversify capital sources and support its long-term strategy.
It's worth noting that the offer and sale of the notes and the related guarantees have not been, and will not be, registered under the Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state or other jurisdiction, and the notes may not be offered or sold in the United States or any other jurisdiction absent registration or an exemption from the registration requirements of the Securities Act and the applicable securities laws of any state or other jurisdiction. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.
Armada Hoffler, founded in 1979, is a vertically integrated, self-managed REIT with over four decades of experience in developing, building, acquiring, and managing high-quality office, retail, and multifamily properties located primarily in the mid-Atlantic and southeastern United States. In addition to its real estate activities, the company also provides general construction and development services to third-party clients and develops and builds properties to be placed in its stabilized portfolio. As a result of these announcements, the company's shares have moved -1.19% on the market, and are now trading at a price of $7.075. Check out the company's full 8-K submission here.
