Armada Hoffler Properties, Inc. AHH recently announced receiving 93% of the total portfolio rents due for August so far. As of Aug 21, office tenants paid 100% of August rents, while payments from multifamily tenants came in at 92% and the same for retail tenants is 89%.
The company’s July rent collections have also been strong at 95% and management anticipates exceeding the level in August. Moreover, management expects to end August with essentially 100% of multifamily rent collection. After witnessing healthy rent collections as well as successfully raising nearly $90 million in new capital this month, the company anticipates to close the previously-announced acquisitions and recommence its development activities.
Admittedly, the coronavirus pandemic has been affecting demand for real estate. Also, amid the macroeconomic uncertainties and job-market choppiness as well as adverse impact on business and consumer sentiment, tenants’ rent-paying capabilities have been affected.
However, Armada Hoffler’s rent collection update indicates that the company is benefiting from its portfolio’s diversification and quality as well as realizing the value of the construction and development platforms.
This REIT focuses on high-quality, institutional-grade office, retail, and multifamily properties mainly in the Mid-Atlantic and Southeastern United States as well as provides development and general contracting construction services to third-party clients. Armada Hoffler’s four decades of experience in real estate poises it well to navigate through the current blues.
However, the company might be plagued with industry headwinds, including demand woes and rent collections, in the near term due to the uncertainty about the magnitude of the pandemic’s impact on the economy and the soaring infection rates.
Shares of this Zacks Rank #4 (Sell) company have appreciated 11.8% in the past three months, as against the 0.6% decline of its industry.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Duke Realty Corporation’s DRE Zacks Consensus Estimate for 2020 FFO per share has been revised 3.5% upward to $1.49 over the past month. The company currently carries a Zacks Rank #2 (Buy).
Cousins Properties Incorporated’s CUZ FFO per share estimate for the ongoing year has moved 1.1% north to $2.77 over the past month. The company currently carries a Zacks Rank of 2.
Four Corners Property Trust, Inc.’s FCPT FFO per share estimate for 2020 has moved up 9.2% to $1.43 over the past month. It currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Duke Realty Corporation (DRE): Free Stock Analysis Report
Cousins Properties Incorporated (CUZ): Free Stock Analysis Report
Armada Hoffler Properties, Inc. (AHH): Free Stock Analysis Report
Four Corners Property Trust, Inc. (FCPT): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.