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http://www.d20pfsrd.com/magic-items/magic-armor/specific-magic-armor/rhino- hide

This +2 hide armor is made from rhinoceros hide. In addition to granting a +2 enhancement bonus to AC, it has a –1 armor check penalty and deals an additional 2d6 points of damage on any successful charge attack made by the wearer, including a mounted charge.

Ok. It says "This +2 Hide Armor."

Does this mean its +2 Hide Armor with extra abilities as per the item, or Hide Armor with 2 more AC than usual and that the only magical quality of it is the 2d6? I ask because a player is saying that, to increase the AC bonus, he only needs to start at the +1 Enhancement Bonus cost instead of the +3.