Armada Hoffler Announces Pricing of Public Offering of Preferred Stock

Globe Newswire 11-Jun-2019 2:03 PM

VIRGINIA BEACH, Va., June 11, 2019 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (NYSE:AHH) (the "Company") announced today that it has priced an underwritten public offering of an aggregate 2,200,000 shares of its newly designated 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock (the "Series A Preferred Stock") at a public offering price of $25.00 per share, for net proceeds of approximately $53.3 million, after the underwriting discount but before estimated offering expenses payable by the Company. The Company has also granted the underwriters a 30-day option to purchase up to an additional 330,000 shares of Series A Preferred Stock offered by the Company at the public offering price less underwriting discounts and commissions. The offering is expected to close on June 18, 2019, subject to customary closing conditions.

The Company intends to use the net proceeds from the offering to fund a portion of the purchase price of the previously announced pending acquisition of Thames Street Wharf, a 263,426 square foot office building located in the Harbor Point neighborhood of Baltimore, Maryland. The balance of the net proceeds, if any, may be used to repay a portion of the outstanding borrowings under the Company's unsecured revolving credit facility and/or for general corporate purposes.

Jefferies and Stifel are acting as joint book-running managers for the offering.

The offering is being made pursuant to a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission on May 5, 2017. 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 Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, New York 10022, or by email: Prospectus_Department@Jefferies.com, or by telephone: (877) 547-6340; and from Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate Department, One South Street, 15th Floor, Baltimore, Maryland 21202, or by email: SyndProspectus@Stifel.com or by telephone: (855) 300-7136.

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. In addition, the fact that the underwriters have an option to purchase additional shares may imply that this option will be exercised. However, the underwriters are not under any obligation to exercise this option, or any portion of it, and may not do so. Investors should not place undue reliance upon forward-looking statements. 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, 2018, 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