AHH Stock Recent News

REITs have suffered a dip in recent months. This is largely due to the growing macro uncertainty. We highlight two deeply undervalued REITs to buy-the-dip.

US equity markets posted modest gains this week - snapping a four-week losing streak - as investors parsed commentary and updated forecasts from the Federal Reserve's policy meeting. Ahead of the looming April 2nd unveiling of reciprocal tariffs, investors were relieved by FOMC projections showing that 11-of-19 policy markets still expect at least two rate cuts this year. Disappointing retail sales data indicated that economic uncertainty is beginning to affect real-world consumer behavior. Housing market data was relatively solid, however, sparking an upward revision to the GDPNow forecast.

AHH's securing of three new office leases at The Interlock in Atlanta highlights healthy demand for its property.

Nearly all vacant WeWork space filled following latest transactions at premier mixed-use development Nearly all vacant WeWork space filled following latest transactions at premier mixed-use development

Newly public REITs often carry too much debt, influenced by private equity origins, leading to financial instability and the need for deleveraging. High dividend payouts can hinder growth; successful REITs maintain lower payout ratios to invest retained cash and ensure sustainable earnings growth. Quality of earnings is crucial; persistent property lease earnings are preferable over ephemeral earnings from construction, loans, or asset management.

Interest rate cuts are back on the table. The next one will likely be on June 18th. This is a strong catalyst for beaten-down small-cap REITs.

Two high-yield stocks just slashed their dividends—but that might be the best thing that ever happened to them. Insiders are loading up, and the market is mispricing these recovery plays with massive upside potential. Lock in yields up to 11% on these overlooked income machines before Mr. Market wakes up!

US equity markets remained under pressure this week as encouraging inflation data and a deal to avoid a government shutdown were offset by further tariff escalations and weak sentiment data. Markets struggled to agree on how the FOMC will interpret the latest economic data, with recent "hard data" showing encouraging trends while "softer" survey data has painted a far-bleaker outlook. Following its worst week in six months, the S&P 500 finished lower by another 2.3% this week - its fourth-straight week of declines - which dragged the index into "correction territory."

REITs positioned for strong gains as interest rate cuts and lower Treasury yields drive investor demand. Decade-low REIT valuations and reduced new real estate development create opportunities for high returns. High-dividend REITs offering 5-7% yields attract income investors seeking alternatives to bonds and Treasuries.

Armada Hoffler's 32% dividend cut is a strategic move to ensure financial health amid high rates and market uncertainty, not a sign of distress. AFFO dropped due to increased tenant improvements, leasing commissions, and property-related capital expenditures, which are temporary and will boost future NOI growth. Management prioritizes long-term value creation over high immediate dividends, focusing on expanding and upgrading the portfolio for sustained growth.