Investment Platform

Armada Hoffler Properties has extensive expertise developing high-quality real estate projects and is opportunistic in its approach to acquisitions and dispositions. New development projects and acquisitions candidates are targeted based on their potential for value creation and evaluated with prudence, keeping in mind the long-term benefit of the Company and our shareholders. The standards we use to evaluate whether to deploy our precious capital on a new project or acquisition have always been, and will continue to be, exceedingly rigorous.

VIEW JOINT VENTURE DEVELOPMENT

$595Mof acquisitions/
dispositions since IPO
$264Mof development projects delivered since IPO
*Portfolio statistics as of 10/16/2017

Acquisition Strategy

The Investment Team is actively pursuing acquisition candidates that will enhance the overall value of the portfolio. Its mission is to find high quality real estate that will generate predictable, growing cash flows through long contractual lease duration of credit-quality anchor tenants with a strong likelihood of lease renewal. Assets located in strategic locations within high barrier-to-entry markets with strong demographics are considered prime targets.

The Company’s experience in the Mid-Atlantic and Southeast, combined with its ability to close with proceeds from its credit facility or access to capital markets for larger transactions, result in quick and efficient transactions. In addition, Armada Hoffler Properties can potentially offer tax-deferred transactions to those selling stabilized assets to the Company by taking advantage of its UPREIT structure.



Acquisition Criteria

Transactions
Single asset or portfolio acquisitions
Asset Type
Retail assets that fit in the following categories: grocery-anchored communities, neighborhood shopping centers, power centers, lifestyle centers, mixed-use projects with a strong retail component, Town Centers
Target Deal Size
$10m to $250m
Tenant Credit Types
Credit-quality anchor tenants
Ownership Type
Free and Clear or Unencumbered
Geography
Secondary and tertiary markets in Maryland, Virginia, North Carolina, South Carolina, Tennessee, and Georgia
Consideration
Cash Closings or Tax-Advantaged Use of UPREIT Structure
*area in blue indicates target investment markets

UPREIT Structure

Partners co-developing assets with Armada Hoffler Properties or selling stabilized assets to the Company can take advantage of its UPREIT structure. This structure consists of an operating partnership that is controlled by the publicly-traded real estate investment trust (REIT). Partnership units in the operating partnership are economically equivalent to shares of Armada Hoffler Properties common stock. When utilized by our partners, taking back operating partnership units in lieu of cash can result in tax deferred gains and recapture, liquidity through the convertibility of the units to common stock, increased diversification from our broad portfolio of stabilized assets, and the potential for additional upside from our other development projects and acquisitions.

NOTE: The information contained herein does not constitute, and shall not be considered, an offer to sell, or a solicitation of an offer to purchase, interests in Armada Hoffler’s operating partnership under U.S. securities laws (or U.S. state securities laws) or under the securities laws of any other country.