May 8, 2023
Armada Hoffler Celebrates 10 Years as a Publicly Traded REIT
May 8, 2023 marks a significant milestone in Armada Hoffler history. It was on this date 10 years ago that our company completed an initial public offering (IPO) and became a real estate investment trust (REIT) on the New York Stock Exchange (NYSE). This achievement highlights our commitment to deliver value to shareholders, tenants, and communities through strategic investments, partnerships, and excellence. Let’s take a further look into the history of Armada Hoffler and why being a publicly traded REIT status is such a noteworthy accomplishment in the commercial real estate industry.
Daniel Hoffler founded Armada Hoffler in Chesapeake, Virginia, in 1979. His guidance and expertise created a company that quickly became one of the most elite commercial real estate organizations of its time. What started out as a small construction firm gradually progressed to expanded capabilities, including real estate development, property management, and asset acquisition. And now, for more than four decades, Armada Hoffler has become a leading developer and owner of high-quality office, retail, and multifamily properties in the Mid-Atlantic and Southeastern regions of the United States. With a portfolio including over 6 million square feet and a market capitalization of more than $1.2 billion, it is clear the growth and success of Armada Hoffler has continued to progress over the years.
After 34 years, Armada Hoffler completed a $218 million IPO and became a publicly-traded REIT listed on the NYSE in 2013. By doing so, Armada Hoffler gained access to a more efficient and flexible source of capital, as well as a tax-advantaged structure that enables it to retain more earnings and reinvest them in growth opportunities. Becoming a publicly-traded REIT also requires Armada Hoffler to meet certain regulatory and financial requirements, such as having at least 75% of its assets and income derived from real estate, distributing dividends on a regular basis, and paying at least 90% of its taxable income to shareholders in the form of dividends.
In the past 10 years, being a publicly-traded REIT has allowed Armada Hoffler to showcase greater visibility, transparency, and credibility in capital markets, facilitating increased access to investors, lenders, and partners, and other key stakeholders. Becoming a successful publicly-traded REIT is no small feat, and Armada Hoffler’s achievement in this regard is a testament to its expertise and commitment to excellence.
Our company has access to a broader pool of capital, a tax-advantaged structure, and the ability to attract and retain top talent, allowing us to expand and move closer to greatness. By delivering value to our stakeholders through strategic investments and partnerships, we have been able to establish ourselves as leaders in the commercial real estate industry and a model for other trailblazing organizations.