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Armada Hoffler Properties Enters into Agreement to Acquire Retail Power Center in Colonial Heights, Virginia

AHH

Armada Hoffler Properties, Inc. (NYSE: AHH) announced today that it has entered into an agreement to acquire Dimmock Square, a retail power center located in Colonial Heights, Virginia. The acquisition of Dimmock Square will add over 100,000 square feet of 100% occupied retail space to the Company’s operating property portfolio.

Current tenants of Dimmock Square include Best Buy, Pier 1, Old Navy, Dress Barn and Shoe Carnival among others. The center also includes a separately-owned 117,000 square foot Target store and is strategically situated between the 900,000 square foot Southpark Mall and a Walmart Supercenter.

The agreement provides that the Company will acquire a 100% interest in Dimmock Square in exchange for approximately 990,000 units of limited partnership interest in the Company’s operating partnership and approximately $10 million of cash.

The acquisition is expected to be accretive to annual FFO per diluted share and is expected to close in the third quarter of 2014.

“This acquisition is an outstanding addition to our portfolio, representing a best-in-class power center located at the intersection of main-and-main, in a contiguous market, the heart of our geographic sweet spot,” commented Louis Haddad, Chief Executive Officer. “This opportunity was born out of deep and longstanding relationships and we will continue to pursue such strategic and opportunistic acquisitions.”

The closing of this acquisition is subject to the satisfaction of certain closing conditions.

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 statement. These forward-looking statements may include comments relating to, among other things, the impact of the acquisition of Dimmock Square on the Company’s FFO per diluted share, the satisfaction of conditions to closing and the expected timing of the closing of the acquisition. For a description of factors that may cause the Company's actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, and other documents filed by the Company with the Securities and Exchange Commission.

About Armada Hoffler Properties, Inc.

Armada Hoffler Properties, Inc. is a full service real estate company with extensive experience developing, building, owning and managing high-quality, institutional-grade office, retail and multifamily properties in attractive markets throughout the Mid-Atlantic United States. The Company has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.