Armada Hoffler Properties (NYSE:AHH) versus Presidio Property Trust (NASDAQ:SQFTW) Financial Analysis

Armada Hoffler Properties (NYSE:AHH) and Presidio Property Trust (NASDAQ:SQFTW) are both real estate companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Armada Hoffler Properties and Presidio Property Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armada Hoffler Properties	0	1	1	0	2.50
Presidio Property Trust	0	0	0	0	N/A

Armada Hoffler Properties currently has a consensus target price of $11.75, indicating a potential upside of 7.31%. Given Armada Hoffler Properties’ higher probable upside, equities analysts clearly believe Armada Hoffler Properties is more favorable than Presidio Property Trust.

Earnings & Valuation

This table compares Armada Hoffler Properties and Presidio Property Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Armada Hoffler Properties	$735.26 million	1.32	$8.29 million	$0.09	121.67
Presidio Property Trust	$18.35 million	N/A	N/A	N/A	N/A

Armada Hoffler Properties has higher revenue and earnings than Presidio Property Trust.

Profitability

This table compares Armada Hoffler Properties and Presidio Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Armada Hoffler Properties	1.10%	1.26%	0.32%
Presidio Property Trust	N/A	N/A	N/A

Institutional and Insider Ownership

66.3% of Armada Hoffler Properties shares are held by institutional investors. 11.9% of Armada Hoffler Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Armada Hoffler Properties beats Presidio Property Trust on 8 of the 8 factors compared between the two stocks.

About Armada Hoffler Properties

Armada Hoffler Properties, Inc. (the “Company”) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality retail, office, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to the ownership of the Company’s operating property portfolio, the Company develops and builds properties for its own account and through joint ventures between the Company and unaffiliated partners and also invests in development projects through real estate financing arrangements. The Company also provides general construction and development services to third-party clients. The Company’s construction and development experience includes mid- and high-rise office buildings, retail strip malls, retail power centers, multifamily apartment communities, hotels and conference centers, single- and multi-tenant industrial, distribution, and manufacturing facilities, educational, medical, and special purpose facilities, government projects, parking garages, and mixed-use town centers. The Company is the sole general partner of Armada Hoffler, L.P. (the “Operating Partnership”) and, as of March 31, 2024, owned 75.5% of the economic interest in the Operating Partnership, of which 0.1% is held as general partnership units. The operations of the Company are conducted primarily through the Operating Partnership and the wholly owned subsidiaries thereof.

About Presidio Property Trust

Presidio is an internally managed, diversified REIT with holdings in model home properties which are triple-net leased to homebuilders, office, industrial, and retail properties. Presidio's model homes are leased to homebuilders located in Arizona, Illinois, Texas, Wisconsin, and Florida. Our office, industrial and retail properties are located primarily in Colorado, with properties also located in Maryland, North Dakota, Texas, and Southern California. While geographical clustering of real estate enables us to reduce our operating costs through economies of scale by servicing several properties with less staff, it makes us susceptible to changing market conditions in these discrete geographic areas, including those that have developed as a result of COVID-19. Presidio owns approximately 6.5% of the outstanding common stock of Conduit Pharmaceuticals Inc., a disease agnostic multi-asset clinical-stage disease-agnostic life science company providing an efficient model for compound development.