Wunderlich Securities Inc. analyst lowered hisinvestment opinion of ArmadaHoffler Properties Inc. to "hold" from "buy," witha price target of $14.50.

The analyst wrote in a research report: "We aredowngrading Armada Hoffler … given a 30bp increase to our cap rate assumption,a function of a rapidly changing interest rate environment since the electionand our changing bias toward a rising interest rate environment. Our earningsestimates are unchanged. We continue to believe AHH has a superior amount ofintellectual capital and we expect AHH to consistently create value forshareholders from this core competency; however, we are downgrading AHH to Holdon valuation."