Upreit Structure Virginia
Partners co-developing assets with Armada Hoffler Properties or selling stabilized assets to the Company can take advantage of its UPREIT structure. This structure consists of an operating partnership that is controlled by the publicly traded real estate investment trust (REIT).
Partnership units in the operating partnership are economically equivalent to shares of Armada Hoffler Properties common stock. When utilized by our partners, taking back operating partnership units in place of cash can result in tax-deferred gains and recapture, liquidity through the convertibility of the units to common stock, increased diversification from our broad portfolio of stabilized assets, and the potential for additional upside from our other development projects and acquisitions.