InterRent Real Estate Investment Trust (OTCMKTS:IIPZF) & Armada Hoffler Properties (NYSE:AHH) Head-To-Head Review

InterRent Real Estate Investment Trust (OTCMKTS:IIPZF) and Armada Hoffler Properties (NYSE:AHH) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Dividends

InterRent Real Estate Investment Trust pays an annual dividend of $0.29 per share and has a dividend yield of 3.0%. Armada Hoffler Properties pays an annual dividend of $0.56 per share and has a dividend yield of 8.2%. InterRent Real Estate Investment Trust pays out -34.1% of its earnings in the form of a dividend. Armada Hoffler Properties pays out 700.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares InterRent Real Estate Investment Trust and Armada Hoffler Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InterRent Real Estate Investment Trust	-70.17%	-7.01%	-4.05%
Armada Hoffler Properties	4.39%	3.21%	0.95%

Institutional & Insider Ownership

66.4% of Armada Hoffler Properties shares are held by institutional investors. 6.8% of InterRent Real Estate Investment Trust shares are held by insiders. Comparatively, 10.2% of Armada Hoffler Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares InterRent Real Estate Investment Trust and Armada Hoffler Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InterRent Real Estate Investment Trust	$179.73 million	7.45	-$113.59 million	($0.85)	-11.27
Armada Hoffler Properties	$708.47 million	0.97	$35.65 million	$0.08	85.14

Armada Hoffler Properties has higher revenue and earnings than InterRent Real Estate Investment Trust. InterRent Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Armada Hoffler Properties, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

InterRent Real Estate Investment Trust has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Armada Hoffler Properties has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for InterRent Real Estate Investment Trust and Armada Hoffler Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InterRent Real Estate Investment Trust	0	0	0	3	4.00
Armada Hoffler Properties	0	1	2	0	2.67

Armada Hoffler Properties has a consensus price target of $8.8333, suggesting a potential upside of 29.69%. Given Armada Hoffler Properties’ higher possible upside, analysts clearly believe Armada Hoffler Properties is more favorable than InterRent Real Estate Investment Trust.

Summary

Armada Hoffler Properties beats InterRent Real Estate Investment Trust on 13 of the 17 factors compared between the two stocks.

About InterRent Real Estate Investment Trust

InterRent?REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution?through the acquisition and ownership of multi-residential properties. InterRent’s strategy is to expand its portfolio primarily within?markets that have exhibited stable market vacancies,?sufficient suites available to attain the critical mass necessary to implement?an efficient portfolio management structure, and?offer opportunities for accretive acquisitions. InterRent’s primary objectives are to use the proven industry experience of the Trustees,?Management and Operational Team to: (i)?to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii)?to provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii)?to maintain a conservative payout ratio and balance sheet.

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.