Jefferies starts Armada Hoffler at Buy, says dividend-cut sell-off is overdone
Investing.com -- Jefferies initiated coverage of real-estate investment trust Armada Hoffler Properties (NYSE:AHH) with a Buy rating saying that an unexpected dividend reduction and worries about higher interest costs have pushed the stock well below what its fundamentals justify.
Armada Hoffler slashed its quarterly payout by 32% after first-quarter results, a move that helped drive a 32% slide in the shares this year.
Invest in Gold
Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase
Learn More
American Hartford Gold: #1 Precious Metals Dealer in the Nation
Learn More
Thor Metals Group: Best Overall Gold IRA
Learn More Powered by Money.com - Yahoo may earn commission from the links above.“The current move is overdone,” the analysts wrote, saying a lower but still “well-supported” dividend should let investors refocus on the company’s 97.5%-occupied office portfolio and 94.4%-filled retail assets, where near-term lease expirations are limited.
Jefferies expects tight occupancy to give Armada Hoffler pricing power, forecasting average rent increases of about 10% on retail renewals and 15% in office.
Development projects in Georgia and Baltimore should lift income further as they lease up over the next two years, the brokerage added.
The firm projects core FFO of $1.06 a share in 2025, four cents above the current consensus, and sees earnings growth resuming in 2026 as higher interest expenses and tougher year-over-year construction comparisons fade.
Investors often keep REITs that cut dividends “in the penalty box,” Jefferies acknowledged, but it said clearing low expectations on upcoming results should help the stock’s valuation “re-rate” closer to peers.
Key risks, according to the note, include higher-than-expected interest rates, a delay in leasing at mixed-use developments and a prolonged slowdown in commercial real estate transactions.
Related articles
Jefferies starts Armada Hoffler at Buy, says dividend-cut sell-off is overdone
Bernstein sees opportunity in reinventing multi-brand retail
OpenAI taps Google Cloud TPUs in bid to diversify AI chip supply - The Information
Following Jefferies' reclassification of Armada Hoffler stock from Sell to Buy, it appears that the recent panic-driven selloff due to dividend cuts has been overdone and represents a prime opportunity for investors.
This analyst report suggests a favorable outlook for Armada Hoffler's stock, arguing that the recent sell-off due to dividend cuts has been exaggerated and advises investors not to overlook its long term potential.
Jefferies' upgrade of Armada Hoffler to Buy, following assessment that the overreacted sell-off prompted by dividend reduction is now corrected in pricing.
This article from Jefferies initiating Armada Hoffler with a Buy rating signals that the market overreacted to recent dividend cuts, presenting an opportunity for savvy investors.
After the sharp sell-off in response to Armada Hoffler's dividend reduction, Jefferies now recommends buying into it as an opportune moment due its undervalued potential and suggests that market reactions overdid their pessimistic stance.
这是一条关于股市分析的正面新闻，Jefferies公司上调了对Armada Hoffler Properties Inc.的投资评级至买入（Buy），并指出近期因降低股息引起的抛售已过度，此举表明市场对该公司未来的信任增强和错误定价修复的开始。
这一看好情绪表明市场对于Armada Hoffler分红削减的过度反应已得到纠正，Jefferies策略师认为现在是一个买入的好时机。
The recent sell-off in Armada Hoffler shares due to the announced dividend cut appears overly exaggerated, as evidenced by Jefferies initiating its Buy rating on this stock.
此分析报告显示，Jefferies已将Armada Hoffler视为买入级股票评级，他们同时指出关于股息减少的抛售活动被过度夸大了——即市场对这一信息反应过激了。dividend-cut sell-off is overdone， 表明控股股东和投资者从非理性的悲观态度中脱离出来变得更加明智理性是件好事情。The market's knee jerk reaction to a dividends cut has outstripped the true implications.
The move by Jefferies to initiate Armada Hoffler with a 'Buy' rating, claiming that the over-reaction in selling off due to dividend cuts is now corrected, reflects positive sentiment on market sentiments excessively penalizing this particular real estate investment trust.
