VIRGINIA BEACH, Va. - Armada Hoffler Properties, Inc. (NYSE: NYSE:AHH), a real estate investment trust, has confirmed the continuation of its lease with co-working giant WeWork at the One City Center building in Durham, North Carolina. The agreement, which was finalized after a period of negotiation, will see WeWork occupying a full floor on a long-term lease at market rates.
This move is part of Armada Hoffler's strategy to promote growth and innovation in Durham's vibrant business ecosystem. One City Center has become a notable hub for creativity and collaboration in the region, with WeWork being the sole provider of shared workspace solutions in the area.
Shawn Tibbetts, President and Chief Operating Officer at Armada Hoffler, stated that the lease renewal with WeWork is a testament to the company's commitment to fostering a dynamic environment for businesses in Durham. The long-term lease is expected to provide stability for both Armada Hoffler and WeWork, while also maintaining One City Center's status as a destination for innovation.
The transition under the new lease terms is anticipated to be completed by the end of 2024, following an agreement reached in the spring of 2023. This development underscores the ongoing partnership between the two entities and Armada Hoffler's role in supporting the local business community.
Armada Hoffler, founded in 1979, has over four decades of experience in the real estate sector, with a focus on developing, acquiring, and managing high-quality properties across the Mid-Atlantic and Southeastern United States. Additionally, the company offers construction and development services to third-party clients.
The information in this article is based on a press release statement from Armada Hoffler Properties, Inc.
InvestingPro Insights
As Armada Hoffler Properties, Inc. (NYSE: AHH) reinforces its commitment to the Durham business community through the lease renewal with WeWork, investors and stakeholders may find the following insights from InvestingPro valuable when considering the company's financial health and future prospects.
Despite a challenging market, Armada Hoffler has demonstrated a track record of rewarding its investors, as evidenced by a notable 7.98% dividend yield as of the first quarter of 2024. This aligns with the company's history of raising its dividend for three consecutive years, a positive sign for investors seeking steady income streams. In addition, the company's management has been actively engaged in share buybacks, which can often signal confidence in the company's future performance and a commitment to shareholder value.
On the financial side, Armada Hoffler's market capitalization stands at 907.63 million USD, reflecting the market's current valuation of the company. Investors should note, however, that the company's P/E ratio is negative at -214.37, suggesting that it has not been profitable over the last twelve months as of Q4 2023. Furthermore, the company's revenue growth has been robust, with a significant increase of 41.61% in the last twelve months as of Q4 2023.
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