Preferred Apartment Communities, Inc. Announces Approval of All Proposals at the Special Meeting of Stockholders

Rhea-AI Summary

On November 19, 2020, Preferred Apartment Communities, Inc. (APTS) announced the approval of two key proposals by its common stockholders. Proposal 1 permits bylaw access to common stockholders, receiving 97.75% support, while Proposal 2 reduces the call option on Series A Redeemable Preferred Stock from 10 to 5 years, with 95.4% approval. The management expressed satisfaction with the shareholder support, emphasizing enhanced corporate governance and improved capital flexibility as primary benefits. These changes aim to drive long-term earnings growth and provide strategic balance sheet control.

Positive

• 97.75% of voting stockholders approved bylaw access, enhancing corporate governance.
• 95.4% approval for reducing the call option on Series A Redeemable Preferred Stock improves capital flexibility.

Negative

• None.

ATLANTA, Nov. 19, 2020 /PRNewswire/ -- Preferred Apartment Communities, Inc. (NYSE: APTS) ("PAC" or the "Company") today announced that holders of the Company's common stock voted to approve both Proposal 1, a proposal to approve an Articles of Amendment to give bylaw access to common stockholders, and Proposal 2, a proposal to approve an Articles of Amendment to reduce the Company's call option on its Series A Redeemable Preferred Stock from 10 years to 5 years.  Of the 70.11% voting on Proposals 1 and 2, 97.75% and 95.4% voted in favor of Proposal 1 and Proposal 2, respectively.   

"We are extremely pleased that our common stockholders were overwhelmingly supportive of our efforts to enhance our corporate governance and improve our capital flexibility," said Joel T. Murphy, the Company's President and Chief Executive Officer. Mr. Murphy added, "Our Board of Directors is committed to best practices in corporate governance and our effort to proactively provide bylaw access to our common stockholders is consistent with that goal. Further, with the passage of Proposal 2, PAC now has enhanced flexibility to strategically redeem our Series A preferred stock much earlier, so as to provide us with greater balance sheet and expense control flexibility. We believe all of these efforts should ultimately help drive long term earnings growth and value creation for our stockholders."

About Preferred Apartment Communities, Inc.

Preferred Apartment Communities, Inc. (NYSE: APTS) is a real estate investment trust engaged primarily in the ownership and operation of Class A multifamily properties, with select investments in grocery anchored shopping centers and Class A office buildings. Preferred Apartment Communities' investment objective is to generate attractive, stable returns for stockholders by investing in income-producing properties and acquiring or originating real estate loans. As of September 30, 2020, the Company owned or was invested in 125 properties in 15 states, predominantly in the Southeast region of the United States.  Learn more at www.pacapts.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of forward-looking terminology such as "may", "trend", "will", "expects", "plans", "estimates", "anticipates", "projects", "intends", "believes", "goals", "objectives", "outlook" and similar expressions.  Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, (a) the impact of the coronavirus (COVID-19) pandemic on PAC's business operations and the economic conditions in the markets in which PAC operates; (b) PAC's ability to mitigate the impacts arising from COVID-19 and (c) those disclosed in PAC's filings with the Securities and Exchange Commission. PAC undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

View original content:http://www.prnewswire.com/news-releases/preferred-apartment-communities-inc-announces-approval-of-all-proposals-at-the-special-meeting-of-stockholders-301177660.html

SOURCE Preferred Apartment Communities, Inc.

FAQ

What proposals were approved by Preferred Apartment Communities stockholders?

Stockholders approved two proposals: bylaw access for common stockholders and a reduction of the call option on Series A Redeemable Preferred Stock from 10 years to 5 years.

What percentage of stockholders voted in favor of the proposals on November 19, 2020?

97.75% voted in favor of Proposal 1 and 95.4% for Proposal 2.

How does the approval of these proposals affect APTS's capital flexibility?

The approvals enhance APTS's capital flexibility, allowing for strategic redeeming of Series A preferred stock much earlier.

What impact do these proposals have on corporate governance for APTS?

The proposals improve corporate governance by allowing common stockholders greater access to bylaws.