Preferred Apartment Communities, Inc. Provides Update on Fourth Quarter 2020 Investment and Capital Activities

Rhea-AI Summary

Preferred Apartment Communities (NYSE: APTS) announced key investment and capital updates for November and December 2020. Notably, the company sold its student housing portfolio for $478.7 million and acquired two multifamily communities in Florida: The Blake and The Menlo, totaling 613 units. Additionally, PAC was repaid on three multifamily investment loans and sold a non-core multifamily asset. With the transactions providing capital for future investments, PAC aims to shift focus towards its core multifamily strategy, anticipating strong returns for stockholders.

Positive

• Sold student housing portfolio for $478.7 million, providing significant capital.
• Acquired two Class A multifamily communities in Florida, enhancing portfolio quality.
• Financed acquisitions at attractive interest rates of 2.82% and 2.68%.
• Fully repaid on three multifamily investment loans, increasing available capital.

Negative

• None.

ATLANTA, Dec. 21, 2020 /PRNewswire/ -- Preferred Apartment Communities, Inc. (NYSE: APTS) ("PAC" or the "Company") today provided a summary of the Company's recent investment and capital redeployment activities. During the months of November and December 2020, the Company (i) completed the $478.7 million sale of its student housing portfolio, (ii) completed the acquisitions of two multifamily communities in Florida, The Blake, a 2019 built 281-unit Class A multifamily community located in Winter Springs, Florida, a suburban community located northwest of the fast-growing Orlando MSA and The Menlo, a newly constructed 332-unit Class A multifamily community located in Jacksonville, Florida, (iii) was fully repaid with all accrued interest on three previously issued multifamily real estate investment loans, (iv) sold a multifamily community in a now non-core market and (v) completed a call of approximately $208.8 million of its Series A preferred stock.

"Our operational performance across the portfolio has afforded us the opportunity to initiate our efforts to simplify PAC's investment strategies and realign our balance sheet. With internalization, the sale of student housing and a successful vote to be able to call Series A preferred stock after five years, we are poised to both rebalance our common and preferred stock and lean into our core multifamily investment strategy as we close out 2020. Through the acquisitions of The Blake and The Menlo, we have added two newly built, high quality Class A multifamily properties to our portfolio, which were financed with attractive rates of 2.82% and 2.68%, respectively. We believe these Florida properties are well positioned in their respective suburban Sunbelt submarkets and they have each shown strong operational performance throughout the pandemic," stated Joel T. Murphy, the Company's President and Chief Executive Officer.

Mr. Murphy continued, "Additionally, we completed the strategic sale of Avenues at Creekside, located in a non-core market for us (New Braunfels, TX), and were fully repaid on three real estate investment loans, one being our last remaining student housing investment, a loan on a property in Atlanta (Solis Kennesaw II, "The Indy", a 175-unit student housing community). With the completion of these transactions, we were able to achieve significant gains and have additional capital available for use toward higher growth opportunities. We continue to believe that real estate investment loans are a compelling source of growth for PAC, through which we can generate attractive returns on invested capital while being additive to our pipeline of multifamily acquisitions. We are very pleased with these efforts as we continue to seek to drive strong, consistent stockholder returns and value creation."

The Company expects to utilize the proceeds from this asset sale and three loan payoffs to fund additional investments in its core Sunbelt multifamily business through acquisitions or real estate investment loans and for other general business purposes, which may include redeeming additional preferred stock.

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. These forward-looking statements include, but are not limited to, statements regarding expected use of proceeds. Because such statements include risks, uncertainties and contingencies, actual results or actions 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-provides-update-on-fourth-quarter-2020-investment-and-capital-activities-301196531.html

SOURCE Preferred Apartment Communities, Inc.

FAQ

What recent investments did Preferred Apartment Communities (APTS) make?

Preferred Apartment Communities recently acquired two multifamily communities in Florida and sold its student housing portfolio.

How much did APTS receive from selling its student housing portfolio?

APTS received $478.7 million from the sale of its student housing portfolio.

What are the details of the acquisitions made by APTS in Florida?

APTS acquired The Blake, a 281-unit community in Winter Springs, and The Menlo, a 332-unit community in Jacksonville.

What interest rates did APTS secure for its recent property acquisitions?

APTS financed the acquisitions at interest rates of 2.82% and 2.68%.

What is the purpose of the funds from the recent asset sale by APTS?

The funds are expected to be used for further investments in APTS's core multifamily business and for redeeming additional preferred stock.