Armada Hoffler: A Safe Haven REIT

Focus: REITs

Bryan Perry Image Bryan Perry Editor, Cash Machine, Premium Income, Quick Income Trader, Dividend Investing Weekly

I’m adding a new pick to our Safe Haven Portfolio that fits well against the current investing landscape: Armada Hoffler Properties (AHH), says Bryan Perry, income expert and editor of Cash Machine.

Armada Hoffler is a trusted REIT that owns and operates neighborhood shopping centers anchored by major grocery chains, downtown AAA-rated office space and light industrial properties.

It operates in the mid-Atlantic states of Virginia, Maryland, North Carolina and South Carolina.  All of those places are experiencing strong business and population demographics.

For the most recent fourth quarter, the company reported net income of $5.1 million, or $0.09 per share. For full-year 2006, AHH reported net income of $42.8 million, or $0.85 per diluted share, compared to net income of $31.2 million, or $0.75 per diluted share, for full-year 2015.

Same Store Net Operating Income (“NOI”) increased for the 10th consecutive quarter. Core operating property portfolio occupancy reached 94.3%.

AHH introduced 2017 full-year FFO guidance in the range of $0.99 to $1.03 per diluted share. At its current annual dividend payout of $0.76 per share, coverage for 2017 is estimated at 1.35 times and leaves plenty of room for growth.

In addition, the company declared a cash dividend of $0.19 per common share for the first quarter of 2017, representing a 5.6% increase over the prior quarter’s cash dividend and the third increase in three years to notch dividend growth of approximately 19%. The current dividend yield is 5.40%.

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