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AHHPA.PFD (Armada Hoffler Properties) Operating Margin % : 12.82% (As of Dec. 2024)


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What is Armada Hoffler Properties Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Armada Hoffler Properties's Operating Income for the three months ended in Dec. 2024 was $18.28 Mil. Armada Hoffler Properties's Revenue for the three months ended in Dec. 2024 was $142.60 Mil. Therefore, Armada Hoffler Properties's Operating Margin % for the quarter that ended in Dec. 2024 was 12.82%.

Warning Sign:

Armada Hoffler Properties Inc operating margin has been in a 5-year decline. The average rate of decline per year is -3%.

The historical rank and industry rank for Armada Hoffler Properties's Operating Margin % or its related term are showing as below:

AHHpA.PFD' s Operating Margin % Range Over the Past 10 Years
Min: 10.73   Med: 12.16   Max: 20.62
Current: 13


AHHpA.PFD's Operating Margin % is ranked worse than
87.55% of 771 companies
in the REITs industry
Industry Median: 52.71 vs AHHpA.PFD: 13.00

Armada Hoffler Properties's 5-Year Average Operating Margin % Growth Rate was -3.00% per year.

Armada Hoffler Properties's Operating Income for the three months ended in Dec. 2024 was $18.28 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was $92.11 Mil.


Armada Hoffler Properties Operating Margin % Historical Data

The historical data trend for Armada Hoffler Properties's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Armada Hoffler Properties Operating Margin % Chart

Armada Hoffler Properties Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.30 20.62 17.14 10.86 13.00

Armada Hoffler Properties Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.92 12.03 13.97 13.19 12.82

Competitive Comparison of Armada Hoffler Properties's Operating Margin %

For the REIT - Diversified subindustry, Armada Hoffler Properties's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Armada Hoffler Properties's Operating Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Armada Hoffler Properties's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Armada Hoffler Properties's Operating Margin % falls into.


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Armada Hoffler Properties Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Armada Hoffler Properties's Operating Margin % for the fiscal year that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=92.107 / 708.47
=13.00 %

Armada Hoffler Properties's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=18.275 / 142.6
=12.82 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Armada Hoffler Properties  (NYSE:AHHpA.PFD) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Armada Hoffler Properties Operating Margin % Related Terms

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Armada Hoffler Properties Business Description

Traded in Other Exchanges
Address
222 Central Park Avenue, Suite 1000, Virginia Beach, VA, USA, 23462
Armada Hoffler Properties Inc is a real estate company. It engages in developing, building, owning and managing the high-quality, institutional-grade office, retail, and multifamily properties in various markets throughout the Mid-Atlantic and Southeastern United States. It lease its properties under operating leases and recognize base rents. It also recognize revenue from tenant recoveries, through which tenants reimburses the company for expenses paid by them such as utilities, janitorial, repairs and maintenance. The company's operating segment includes office real estate, retail real estate, multifamily residential real estate, and general contracting, real estate financing and real estate services. It generates maximum revenue from the retail real estate segment.