Virginia Beach-based Armada Hoffler says its retail properties are bouncing back from pandemic – The Virginian-Pilot
Armada Hoffler expects further gains in the percentage of its retail properties that are leased, the Virginia Beach-based real estate investment giant said.
The company said it surpassed its target for leased space, which is in the mid-90s percent range, earlier this year. The company had expected that wouldn’t happen until early 2022.
“Several new retailers are on their way to our flagship property, the Town Center of Virginia Beach, led by a new retail concept that is the first in the region,” Lou Haddad, president and chief executive officer told securities analysts during a recent conference call.
“It’s important to note that many of our tenants who report monthly sales eclipsed comparable 2019 sales through the summer; several of those report that they set all-time records for the period.”
Haddad said as new tenants arrive and start to pay rent, the company expects net operating income from its retail properties will exceed pre-pandemic levels early in 2022.
The company’s 2,300 multi-family housing units are more than 97% occupied, he said.
New leases signed during the third quarter averaged rent increases of more than 9%, Haddad said. Net operating income from units that were open in both 2021 and 2020 was up 12%, he added.
“With the continued migration to high-value properties in the sought-after markets of the mid-Atlantic, coupled with a shortage of housing, our expectation is that 2022 will be another strong year for these assets,” he said.
He said the company’s pipeline of new development projects totals $470 million.
Armada Hoffler develops, builds, buys and manages office, retail and multifamily properties located primarily in mid-Atlantic and southeastern states.
Dave Ress, 757-247-4535, dress@dailypress.com
