Jan. 5 at 3:49 PM
Here's a very under the radar high yield play for 2026:
$AHH is different from most REITs.
It operates a development-first model, building high-quality mixed-use, multifamily, office, and retail assets, then selectively keeping only the best properties as long-term holdings.
Today, the portfolio consists of 72 income-producing properties with ~95% occupancy, including “Class A trophy” assets in walkable, high-barrier-to-entry Sunbelt markets.
AHH shares are down 33% this year.
We typically try and avoid companies that have dividend cuts in their recent history, but AHH is going under a complete structure change under their new CEO, Shawn Tibbets
- Under new CEO Shawn Tibbetts, AHH is undergoing a fundamental shift:
- Moving away from volatile fee-based construction income
- Prioritizing recurring property-level cash flows
- Deleveraging the balance sheet and targeting higher-quality financing
- Focusing on fewer, better assets rather than growth for growth’s sake
The dividend cut was necessary. The payout had become unsustainably high.
Importantly, management reset the dividend so it is now fully covered by rental income alone and not development fees, with the AFFO payout ratio back in the low-70% range.
This transforms AHH from a developer that owned properties into a true property company first, with development as a value-add, not the core thesis.
- 8.37%+ dividend yield is now properly covered
- Significant insider buying since restructuring (insiders own 10%+ of the comapny!)
- Trading at the lowest Price/AFFO multiple in a decade
AHH is more of a deep value pick-
But with a safer dividend, improving asset quality, and a more conservative strategy, AHH now offers high current income and meaningful upside if the market begins to reward the new business model.
For example, just 1.5% dividend growth moving forward would imply over 21% upside.
