Stifel Capital revised its valuation outlook for Armada Hoffler Properties, cutting the firm's price target to $9.00 from $10.50 on Monday but leaving its Buy recommendation intact. The research note followed the company's recently released fourth-quarter 2025 results and highlighted a set of contrasting performance metrics.
Armada Hoffler reported normalized funds from operations of $0.29 per share for the fourth quarter of 2025. That FFO figure exceeded both Stifel's projection and the broader Street consensus by $0.03 per share. Stifel attributed the positive variance relative to its forecast to lease termination fees, which added to the quarter's cash flow profile.
Despite the FFO beat, the company also disclosed an earnings per share result that missed expectations. Armada Hoffler recorded EPS of -$0.01 for the quarter, falling short of the anticipated $0.05. The shortfall represents a negative surprise of 120% relative to estimates and was noted as a datapoint that concerned investors.
On the revenue side, Armada Hoffler reported sales of $71.95 million for the quarter, topping projected revenue of $68.33 million. That outcome corresponds to a 5.3% increase versus the estimate and was highlighted as evidence of underlying operational strength despite the EPS miss.
The company is a real estate investment trust that owns and operates commercial properties. Armada Hoffler announced its fourth-quarter results on Monday, with the mixed set of results prompting analyst attention and market reaction.
At the time of the update, shares of Armada Hoffler were trading at $6.27. That market price sits below both Stifel's adjusted $9.00 target and the consensus among analysts, a gap the firm and market observers note as potential upside relative to current valuation levels.
Context and implications
The quarter presented a divergence between measures of cash-based operating performance and accrual accounting results. FFO - a key metric for REITs - topped expectations, aided by lease termination fees, while GAAP EPS declined into negative territory relative to estimates. Revenue growth outpaced consensus, but the EPS disappointment drew investor scrutiny.
Stifel's action to lower its price objective while maintaining a positive recommendation signals a recalibration of near-term valuation assumptions without changing the firm's view on the company's prospects.