AH Realty Trust (NYSE:AHRT), formerly Armada Hoffler, today announced that it has entered into a binding purchase and sale agreement with an affiliate of Harbor Group International, a leading global real estate investment and management firm, under which Harbor Group will acquire an 11-asset portfolio from AH Realty Trust for $562 million in cash, subject to certain adjustments. Under the terms of the agreement, a $15 million nonrefundable deposit is due upon execution and the transaction is not contingent on the receipt of financing by Harbor Group.

The agreement formalizes the letter of intent previously disclosed by the Company on February 16, 2026, and represents a significant step toward simplifying AH Realty Trust's platform, reducing leverage, and reallocating capital toward its operating strategy. The transaction is subject to customary closing conditions. The Company expects closing to occur in mid-2026.

"This binding agreement represents a major milestone in our transformation," said Shawn Tibbetts, Chairman, President and Chief Executive Officer of AH Realty Trust. "It reflects the deliberate, strategic actions we are taking to simplify the Company, sharpen our focus, and above all, unlock value for our shareholders. These multifamily assets are high‑quality properties that have performed exceptionally well, yet their intrinsic value was not reflected in the public market's share price valuation. This transaction allows us to realize that value, strengthen our balance sheet, and advance our focus toward a simpler real estate platform."

Sale proceeds will be directed toward debt reduction, consistent with the Company's long‑term leverage target of 5.5x–6.5x net debt to total adjusted EBITDA.

"Executing this sale is a critical component of our plan to strengthen our balance sheet, reduce complexity, and concentrate our resources on the retail and office sectors where we can create the most value," Tibbetts continued. "As we advance this transformation, our operating model, capital allocation discipline, and asset strategy remain firmly aligned with long-term shareholder value creation."

The pending sale of the multifamily assets is a significant step towards executing AH Realty Trust's previously announced restructuring, which includes:

  • Divesting multifamily assets, as well as the construction and real estate financing businesses;
  • Advancing capital recycling initiatives that prioritize debt reduction and support the Company's long‑term leverage objectives;
  • Positioning the Company for external growth through a targeted pipeline of retail acquisition opportunities in markets aligned with its operating strengths; and
  • Rebranding the Company as AH Realty Trust effective March 2, 2026, under the new NYSE ticker symbol AHRT.

The Company expects to provide additional updates as remaining definitive agreements are executed and transactions close.

The 11 multifamily assets under agreement represent the entirety of the Company's multifamily portfolio, except for Smith's Landing, which AH Realty Trust will retain, and the Everly and Solis Gainesville, both of which the Company intends to market for sale.

In addition, the Company is in advanced negotiations to sell two of its real estate financing investments for aggregate proceeds of approximately $63 million. There can be no assurances that these transactions will be consummated on the terms or on the timeline anticipated, or at all.