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Think of them as a Prologis (a major industrial landlord) but for offices, retail, and apartments, and they also build their own properties from the ground up, even offering construction services to other companies.

Imagine a company like Simon Property Group (a big mall landlord) but they own a mix of offices, retail, and apartments, and uniquely, they also develop and build those properties themselves for their own portfolio and for other clients.

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• Office Properties: High-quality, institutional-grade office buildings that are developed, built, acquired, and managed to generate rental income.
• Retail Properties: High-quality, institutional-grade retail centers and properties that are developed, built, acquired, and managed to generate rental income.
• Multifamily Properties: High-quality, institutional-grade apartment complexes and residential properties that are developed, built, acquired, and managed to generate rental income.
• Development Services: Providing real estate development expertise and oversight to third-party clients.
• General Contracting Construction Services: Executing the construction of real estate projects as a general contractor for third-party clients.

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Armada Hoffler Properties (AHH) serves a diverse customer base through its vertically-integrated operations, which include developing, building, acquiring, and managing various property types, as well as providing third-party construction services. Due to the nature of a diversified real estate investment trust, AHH does not have a few major named customers that constitute a significant portion of its revenue. Instead, its customer base is broad and falls into the following categories:

• Businesses renting commercial space: This category encompasses a wide array of companies that lease office space for their operations, as well as retail businesses ranging from local establishments to national chains that occupy space in AHH's retail centers and mixed-use properties.
• Individuals and families renting residential units: A significant portion of AHH's portfolio includes multifamily properties. The customers for these properties are individuals and families who rent apartments for their primary residences.
• Third-party clients for development and construction services: These clients are other companies, developers, or institutional entities that utilize Armada Hoffler's expertise in development and general contracting for their own real estate projects.

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Shawn J. Tibbetts, Chairman, President and Chief Executive Officer

Mr. Tibbetts assumed the role of Chief Executive Officer of Armada Hoffler Properties effective January 1, 2025, and was also appointed Chairman of the Board. He joined Armada Hoffler as Chief Operating Officer in 2019 and was elevated to President earlier in 2024. With over 20 years of corporate leadership experience, he previously served as President and Chief Operations Officer for The Port of Virginia.

Matthew T. Barnes-Smith, Chief Financial Officer, Treasurer and Corporate Secretary

Mr. Barnes-Smith was appointed Chief Financial Officer, Treasurer, and Corporate Secretary in March 2022. Prior to this, he served as the company's Executive Vice President of Finance. Before joining Armada Hoffler, Mr. Barnes-Smith was the Chief Administration Officer for The Port of Virginia, where he was responsible for financial analytics and reporting, as well as procurement and cost control.

Daniel A. Hoffler, Founder & Executive Chairman Emeritus

Mr. Hoffler founded Armada Hoffler in 1979. He served as Executive Chairman of the Board until 2024 and currently remains active in strategic operations as Executive Chairman Emeritus. His prior career experience includes serving as a regional manager for Dun & Bradstreet and as Vice President of Marketing for Eastern International, Inc.

Louis S. Haddad, Executive Chairman of the Board

Mr. Haddad served as President and Chief Executive Officer of Armada Hoffler Properties, Inc. from May 13, 2013, until his retirement as CEO at the end of 2024. He continues to serve as Executive Chairman of the Board of Directors. Mr. Haddad joined Armada Hoffler in 1985 as an on-site construction superintendent. He rose to become President of Armada Hoffler Construction Company in 1987, President of the parent company Armada Hoffler Holding Co. in 1996, and Chief Executive Officer in 1999. He led the company's initial public offering and transition to a publicly traded REIT in 2013.

Eric E. Apperson, President, Construction & Development

Mr. Apperson serves as the President of Construction & Development for Armada Hoffler Properties.

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The key risks to Armada Hoffler Properties (AHH) largely revolve around its ongoing strategic transformation and the inherent sensitivities of a real estate investment trust (REIT) to market dynamics.

1. Strategic Transformation and Execution Risk: Armada Hoffler Properties is undergoing a significant business restructuring, effective around March 2, 2026. This involves exiting the multifamily property sector, divesting construction and real estate financing activities, and rebranding as AH Realty Trust to focus on a streamlined retail and office platform. The execution of this transformation carries material risk, as the success of asset sales, pricing, and leverage reduction must align with the company's strategic goals. The company has indicated that 2026 will be a "gap year" characterized by lower funds from operations (FFO) and short-term FFO dilution due to this transformation.

2. High Capital Costs and Debt/Interest Rate Risk: As a REIT, Armada Hoffler Properties is sensitive to fluctuations in capital costs and interest rates. High capital costs and near-term debt maturities remain significant risks. The company faces risks associated with rising interest rates and weaknesses in the commercial real estate fundamentals, which can impact profitability and the overall market value of its properties. While the company has taken steps to derisk its balance sheet, such as issuing senior unsecured notes to repay borrowings, the broader economic environment and its impact on financing remain a concern, especially during a period of strategic change.

3. Market Conditions and Operational Challenges in Retail and Office Segments: Even after its strategic pivot, the company's performance will remain susceptible to market conditions within its core retail and office segments. Risks include potential higher-than-expected vacancy rates, lower rental rates, and increasing operational costs. Challenges like anchor tenant bankruptcies and occupancy headwinds can also negatively impact net operating income (NOI). The ability to successfully manage and lease its properties to meet financial expectations is critical, and unforeseen market shifts could adversely affect its financial condition and cash flow.

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The ongoing and evolving shift towards remote and hybrid work models represents a clear emerging threat. This trend fundamentally alters the demand for traditional office space, potentially leading to increased vacancies, downward pressure on rental rates, and obsolescence of certain types of office properties, directly impacting a significant portion of Armada Hoffler Properties' portfolio.

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For Armada Hoffler Properties (AHH), the addressable markets for their main products and services are primarily in the Mid-Atlantic and Southeastern United States. Based on available data, the market sizes are as follows:

Office Properties

• U.S. Market: The U.S. Office Real Estate Market was valued at approximately USD 369.58 billion in 2025 and is estimated to grow to USD 381.48 billion in 2026. It is projected to reach USD 447.86 billion by 2031, with a compound annual growth rate (CAGR) of 3.22% during the forecast period (2026-2031). Grade A buildings, which align with Armada Hoffler's focus on institutional-grade properties, represented 58.56% of occupied stock in 2025 and are projected to grow faster than the broader market.
• Mid-Atlantic Region: In the Washington, D.C. office market, there was a positive net absorption of 367,616 square feet in Q1 2025. The overall average rental rate in Washington, D.C. for Q1 2025 was $60.06 per square foot.
• Southeastern United States: While a specific overall market size in USD for office properties in the Southeast was not readily available, Atlanta's office market had an elevated vacancy rate of 26.6% in Q1 2025, with rental rates at $31.57 per square foot. Texas, a state often included in broader Southern U.S. analyses and a key growth area for AHH, is forecast to be the fastest-growing office market with a 4.15% CAGR through 2031.

Retail Properties

• U.S. Market: U.S. retail sales are projected to be roughly $7.4 trillion in 2025. The retail sector captured a 27% share of sales volume across the four major commercial real estate sectors in 2024. The retail real estate market is noted to be entering 2026 from a position of relative strength due to scarce space and limited new development.
• Mid-Atlantic Region: Specific market size data in USD for retail properties in the Mid-Atlantic region was not available.
• Southeastern United States: For the Atlanta retail market, the average monthly rental rate (NNN) was $19.64 per square foot as of mid-2024. The market is characterized by limited new construction and very low vacancy rates, around 3.8%.

Multifamily Properties

• U.S. Market: The U.S. multifamily industry is generating estimated revenue of approximately $94 billion in 2025, with forecasts projecting growth to reach roughly $101 billion by 2030 at an approximate CAGR of 1.4%. Total apartment investment volume reached $165.5 billion in 2025.
• Mid-Atlantic Region: In the Washington Metro Area, multifamily sales volume totaled $610 million in Q2 2025, with total inventory exceeding 700,000 units. Sales volume in the Washington metro area increased in the second half of 2025, with Q4 transactions amounting to $2.6 billion. The Richmond metro market recorded multifamily sales volume totaling $800 million in 2025. The Hampton Roads market saw multifamily sales volume of approximately $1.1 billion in 2025. In the Baltimore metro area, multifamily sales volume was just under $1.0 billion for 2025.
• Southeastern United States: The Southeast region accounted for 42.1% of capital raised for commercial real estate and produced 40.5% of total investment returns in 2025, with multifamily assets securing 48.6% of all capital raised nationwide. Southeast Florida was ranked as having the most intense multifamily construction activity in the nation as of Q4 2025, with 36,290 units under construction, adding 9% to its current stock.

Development and General Contracting Construction Services

• U.S. Market: The U.S. commercial construction market size is estimated at USD 567.05 billion in 2026 and is projected to reach USD 723.25 billion by 2031, with a CAGR of 4.22%. Total annual spending/gross output for the entire U.S. construction industry was $2.2 trillion in 2024. New construction accounted for 68.1% of the U.S. commercial construction market size in 2025.
• Mid-Atlantic Region: For the DC, Maryland, and Virginia (DMV) region, commercial and residential construction growth was projected to reach $25 million in 2020.
• Southeastern United States: The Southern U.S. nonresidential construction market is projected to generate $293.7 billion in starts in 2025, representing approximately 38% of all U.S. nonresidential construction activity. This is forecast to rebound to $310.6 billion by 2027.

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Armada Hoffler Properties (AHH), soon to be known as AH Realty Trust, is undergoing a significant strategic transformation that is expected to drive its future revenue growth over the next two to three years. The company is narrowing its focus to retail and office properties while divesting its multifamily, construction, and real estate financing segments.

The key drivers of future revenue growth for Armada Hoffler Properties include:

1. Strategic Focus and Targeted Acquisitions in Retail: The company's new investment mandate is centered on expanding its retail real estate portfolio through targeted acquisitions. Management plans to pursue investments in markets with strong fundamentals that are anticipated to support sustained future rent growth. Armada Hoffler has allocated approximately $50 million for retail acquisitions in 2026.
2. Same-Store Net Operating Income (NOI) Growth from Existing Retail and Office Properties: Growth is expected from the company's stabilized retail and office portfolios through positive leasing spreads and rent commencements. For 2026, the company projects a blended retail and office same-store NOI cash growth of just over 1.7%, with retail NOI cash growth estimated between 1.00% and 2.00%, and office NOI cash growth between 1.40% and 2.50%.
3. Enhanced Operational Efficiency and Streamlined Business Model: The company's restructuring aims to create a leaner, more disciplined, and durable platform. This focus on operational excellence is intended to drive consistent performance improvements, predictable earnings, and sustainable cash flow growth from its concentrated retail and office portfolio. Initiatives include proactive leasing, tenant retention, mark-to-market adjustments on new leases, and disciplined expense management.

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Share Issuance

• A share issuance occurred in September 2025 at $10.50 per share.

Outbound Investments

• In 2025, Armada Hoffler acquired full ownership of the Allied | Harbor Point project and purchased Solis Gainesville II.
• The company plans to acquire approximately $50.0 million of retail properties in 2026, targeting cap rates in the 6.25%-7% range.

Capital Expenditures

• Armada Hoffler Properties is undergoing a significant strategic transformation in 2026, exiting its multifamily portfolio, construction business, and real estate financing businesses to focus on retail and office assets.
• Proceeds from these divestitures, including $562 million from the sale of 11 multifamily assets to Harbor Group International, are primarily directed towards debt reduction.
• The company's 2026 guidance includes approximately $270.0 million in secured debt paydowns and $400.0 million in net unsecured debt paydowns resulting from the multifamily disposition.