Armada Hoffler plans to begin 2025 with a new CEO as the Virginia-based real estate investment trust moves forward with its succession plan and works to fortify its balance sheet.
The company's board said Tuesday that Shawn Tibbetts, its president and chief operating officer, will take over as CEO on Jan. 1. He will succeed current CEO Lou Haddad, who is retiring.
Haddad will retain his role as the board's executive chairman of the board, Armada Hoffler said.
Tibbetts has served as chief operating officer since 2019 and as president since earlier this year. He’s grown net operating income for the company's portfolio of properties by 45% and overseen the execution of transactions topping $1.2 billion, Armada Hoffler said.
The change is being made sooner than originally announced. In February, Armada Hoffler said it expected to appoint Tibbetts as its CEO in spring 2025 upon Haddad's retirement. At the time, the REIT said the moves were part of "a deliberate and thorough succession planning process over the last several years."
This month, Armada Hoffler reported a net loss of $10.4 million, or 11 cents per diluted share, in the third quarter. That compared to a net income of $5.3 million, or $0.06 per diluted share, in the third quarter of 2023. In response, Haddad said the REIT would be shifting its strategy away from collecting fees to generating income from its commercial assets.
"This quarter’s results, including our 95.4% stabilized portfolio wide occupancy, underscore our best-in-class portfolio, featuring minimal commercial lease maturities for the next few years, that continues to provide long term value," Haddad said in a statement. "The company is moving toward a stronger balance sheet, higher emphasis on property [net operating income] and less reliance on fee income over time.”
Succession plan underway
The company has a portfolio that spans more than eight states in the mid-Atlantic and Southeast valued at $2.6 billion. Some of its high-profile mixed-use projects include The Interlock in Atlanta and Town Center of Virginia Beach in its hometown.
Armada Hoffler said in February that Haddad is expected to serve as chairman for about one year after being replaced as CEO.
Under the outgoing CEO’s 25 years in the leadership role, Haddad steered the company through an initial public offering to become a publicly traded REIT listed on the New York Stock Exchange.
"We congratulate Lou Haddad on a remarkable career helping to build Armada Hoffler into what it is today and appreciate his continued dedication to the prosperity of the company and our shareholders," said Eva Teig Hardy, lead independent director, in a statement. "Having worked closely with Shawn over the last five years, I am very confident in his abilities to lead Armada Hoffler forward."