Armada Hoffler Announces Pricing of Public Offering of 6.75% Series A Preferred Stock

VIRGINIA BEACH, Va., Aug. 13, 2020 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (NYSE: AHH) (the “Company”) announced today that it has priced an underwritten public offering of 3,600,000 shares of its 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock (the “Series A Preferred Stock”) at a public offering price of $24.75 per share (inclusive of accrued dividends), for net proceeds of approximately $86.3 million, after the underwriting discount but before estimated offering expenses payable by the Company. The offering is expected to close on August 20, 2020, subject to customary closing conditions.

This offering is a re-opening of the Company’s previous issuances of Series A Preferred Stock. The additional shares of Series A Preferred Stock sold in this offering will form a single series, and be fully fungible, with the outstanding shares of Series A Preferred Stock. The Series A Preferred Stock is listed on the New York Stock Exchange under the symbol “AHHPrA.”

The Company intends to use the net proceeds from the offering to repay outstanding indebtedness, including amounts outstanding under its unsecured revolving credit facility, to fund potential acquisitions and/or for general corporate purposes and working capital, including development, redevelopment, construction and other commitments.

BofA Securities, Raymond James and Jefferies are acting as joint book-running managers for the offering. Janney Montgomery Scott is acting as co-manager for the offering.

The offering is being made pursuant to a shelf registration statement on Form S-3 that became automatically effective upon filing with the Securities and Exchange Commission on March 9, 2020. A preliminary prospectus supplement relating to the offering was filed by the Company with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Copies of the final prospectus supplement and related prospectus relating to the offering may be obtained, when available, from BofA Securities, Inc., Attention: Prospectus Department, 200 North College Street, 3rd Floor, Charlotte, NC 28255, by telephone at (800) 294-1322 or by email at dg.prospectus_requests@bofa.com; from Raymond James & Associates, Inc., Attention: Equity Syndicate, 880 Carillon Parkway, St. Petersburg, Florida 33716, by telephone at (800) 248-8863 or by e-mail at prospectus@raymondjames.com; and from Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, New York 10022, by email at Prospectus_Department@Jefferies.com, or by telephone at (877) 547-6340.

Forward-Looking Statements

Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties, and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statements. For example, the fact that the offering has priced may imply that the offering will close, but the closing is subject to conditions customary in transactions of this type and may be delayed or may not occur at all. Completion of the offering on the terms described, and the application of net proceeds, are subject to numerous conditions, many of which are beyond the control of the Company, including, market conditions, general economic conditions and other factors, including those set forth under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and the other documents filed by the Company with the Securities and Exchange Commission from time to time.

About Armada Hoffler Properties, Inc.

Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust (“REIT”) with four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. Founded in 1979 by Daniel A. Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes.

Contact:

Michael P. O’Hara
Armada Hoffler Properties, Inc.
Chief Financial Officer, Treasurer, and Secretary
Email: MOHara@ArmadaHoffler.com
Phone: (757) 366-6684

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