Preferred Apartment Communities Announces Redemption of Series A Preferred Stock

Preferred Apartment Communities Inc. (NYSE: APTS), a publicly traded real estate investment trust and sponsor of alternative investments, intends to redeem shares of its 6.00% Series A Redeemable Preferred Stock.

Preferred Apartment Communities Inc. (NYSE: APTS), a publicly traded real estate investment trust and sponsor of alternative investments, intends to redeem 221,645 shares of its 6.00% Series A Redeemable Preferred Stock on August 3, 2021.

The called shares represent 100 percent of the Series A preferred stock currently available to call at the company’s option and 13.5 percent of the current total outstanding shares.

“Since last November, we have redeemed over $550 million of our Series A preferred stock or approximately 28 percent of the amount in place as of September 30, 2020,” said Joel Murphy, chairman and chief executive officer. “This significant and material positive change in our capital structure furthers our goal of realigning the balance sheet and puts us in a position to build on all of our recent operational successes.”

On Friday, Preferred Apartment Communities sold a portfolio of five office properties and one office real estate loan investment to Highwoods Properties (NYSE: HIW) for $645.5 million. The sale will result in net proceeds of approximately $241.5 million, after satisfying $404 million of property level debt and other closing adjustments and costs. In 2020, the company announced plans to simplify its investment focus on core Sunbelt multifamily investments.

“The sale we just completed of the substantial majority of our office assets has allowed us to harvest capital to realign our balance sheet and to further simplify our investment focus,” added Murphy. “This significant redemption of our Series A preferred stock is consistent with these objectives. The remaining net proceeds from this office asset sale will be used for additional investments in our core Sunbelt multifamily business through acquisitions or real estate investment loans, or other corporate purposes.”

The preferred stock will be redeemed at their initial value of $1,000 per share, plus accrued and unpaid dividends up to, and including, the redemption date in an amount equal to $0.50 per share, for total proceeds of $1,000.50 per share. Payments will be made in cash.

Separately, on August 20, 2020, the company will pay the cash dividend on the Series A preferred stock of $5.00 for the period from July 1, 2020 to July 31, 2020 to each holder of record on July 30, 2020.

Preferred Apartment Communities invests primarily in Class A multifamily properties, with select investments in grocery-anchored shopping centers. As of June 30, 2021, the company owned or was invested in 117 properties in 13 states, predominantly in the Southeast region of the United States.

For more Preferred Apartment Communities news, please visit their directory page.