Preferred Apartment Communities
Market Cap
US$635.4m
Last Updated
2019/11/21 00:26 UTC
Data Sources
Company Financials +
Executive Summary
Preferred Apartment Communities, Inc. is a Maryland corporation formed primarily to own and operate multifamily properties and, to a lesser extent, own and operate grocery-anchored shopping centers, class A office buildings and student housing properties.
Snowflake
Fundamentals
Second-rate dividend payer and overvalued.
Similar Companies
Share Price & News
How has Preferred Apartment Communities's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: APTS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.0%
APTS
2.4%
US REITs
0.9%
US Market
1 Year Return
-9.9%
APTS
15.7%
US REITs
16.8%
US Market
Return vs Industry: APTS underperformed the US REITs industry which returned 15.7% over the past year.
Return vs Market: APTS underperformed the US Market which returned 16.8% over the past year.
Shareholder returns
| APTS | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.0% | 2.4% | 0.9% |
| 30 Day | -6.2% | -2.0% | 4.5% |
| 90 Day | 0.2% | 1.7% | 6.2% |
| 1 Year | -3.6%-9.9% | 20.6%15.7% | 19.4%16.8% |
| 3 Year | 20.1%-0.6% | 40.0%22.5% | 47.5%38.0% |
| 5 Year | 116.7%57.0% | 57.1%24.4% | 62.0%44.1% |
Price Volatility Vs. Market
How volatile is Preferred Apartment Communities's share price compared to the market and industry in the last 5 years?
Simply Wall St News
Valuation
Is Preferred Apartment Communities undervalued compared to its fair value and its price relative to the market?
0.33x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: APTS ($13.61) is trading above our estimate of fair value ($12.3)
Significantly Below Fair Value: APTS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: APTS is unprofitable, so we can't compare its PE Ratio to the REITs industry average.
PE vs Market: APTS is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate APTS's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: APTS is good value based on its PB Ratio (0.3x) compared to the US REITs industry average (2x).
Next Steps
Future Growth
How is Preferred Apartment Communities forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
-13.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: APTS is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: APTS is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: APTS is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: APTS's revenue (14.7% per year) is forecast to grow faster than the US market (7.3% per year).
High Growth Revenue: APTS's revenue (14.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if APTS's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Preferred Apartment Communities performed over the past 5 years?
-36.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: APTS has large one-off items impacting its financial results.
Growing Profit Margin: APTS is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: APTS is unprofitable, and losses have increased over the past 5 years at a rate of -36.3% per year.
Accelerating Growth: Unable to compare APTS's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: APTS is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (8.7%).
Return on Equity
High ROE: APTS has a negative Return on Equity (1.13%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Preferred Apartment Communities's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: APTS has a high level of physical assets or inventory.
Debt Coverage by Assets: APTS's debt is not covered by short term assets (assets are 0.1x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable APTS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: APTS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 34.8% per year.
Financial Institutions Analysis
Asset Level: APTS's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if APTS has a sufficient allowance for bad loans.
Low Risk Liabilities: APTS reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if APTS has an acceptable proportion of non-loan assets held.
Low Risk Deposits: APTS has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if APTS has an appropriate level of bad loans.
Next Steps
Dividend
What is Preferred Apartment Communities's current dividend yield, its reliability and sustainability?
7.71%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Preferred Apartment Communities before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: APTS's dividend (7.71%) is higher than the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: APTS's dividend (7.71%) is in the top 25% of dividend payers in the US market (3.68%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, APTS has been paying a dividend for less than 10 years.
Growing Dividend: APTS's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (233.5%), APTS's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: APTS's dividends in 3 years are forecast to be thoroughly covered by earnings (1.2% payout ratio).
Next Steps
Management
What is the CEO of Preferred Apartment Communities's salary, the management and board of directors tenure and is there insider trading?
3.2yrs
Average management tenure
CEO
Dan DuPree (72yo)
1.6yrs
Tenure
US$1,732,607
Compensation
Mr. Daniel M. DuPree, also known as Dan, has been Chairman and Chief Executive Officer of Preferred Apartment Communities, Inc. since April 16, 2018. Mr. DuPree served as the Vice Chairman of Preferred Apa ...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($USD1.73M) is below average for companies of similar size in the US market ($USD2.63M).
Compensation vs Earnings: Dan's compensation has increased whilst the company is unprofitable.
Management Age and Tenure
3.2yrs
Average Tenure
60yo
Average Age
Experienced Management: APTS's management team is considered experienced (3.2 years average tenure).
Board Age and Tenure
4.7yrs
Average Tenure
62.5yo
Average Age
Experienced Board: APTS's board of directors are considered experienced (4.7 years average tenure).
Insider Trading
Insider Buying: APTS insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 460 |
| Max Price | US$13.14 |
| Entity | Individual |
| Role | Chief Executive Officer Chairman & CEO |
| Shares | 10,000 |
| Max Price | US$13.07 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,698 |
| Max Price | US$14.31 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,800 |
| Max Price | US$14.91 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.5%.
Management Team
Dan DuPree (72yo)
Chairman & CEO
- Tenure: 1.6yrs
- Compensation: US$1.73m
Joel Murphy (60yo)
Director
- Tenure: 0.5yrs
- Compensation: US$1.41m
Paul Cullen
Executive VP & Chief Marketing Officer
- Tenure: 3.2yrs
Mike Cronin (64yo)
Executive VP
- Tenure: 10.2yrs
- Compensation: US$687.80k
Lenny Silverstein (60yo)
Co-Founder
- Tenure: 1.6yrs
- Compensation: US$1.73m
Jeffrey Sprain (47yo)
Executive VP
- Tenure: 10.8yrs
- Compensation: US$497.10k
John Isakson (48yo)
CFO & Executive VP
- Tenure: 1.3yrs
- Compensation: US$651.76k
Jeff Sherman
Executive VP & MD of Multifamily
- Tenure: 0yrs
Rob Gayle
Chief Operating Officer of Preferred Residential Management LLC
- Tenure: 1.3yrs
Kimberly Hodge
Executive VP & Chief Property Management Officer
- Tenure: 1.8yrs
Board Members
Howard McLure (62yo)
Lead Independent Director
- Tenure: 5.8yrs
- Compensation: US$102.80k
Sara Finley (58yo)
Independent Director
- Tenure: 0.5yrs
Dan DuPree (72yo)
Chairman & CEO
- Tenure: 1.6yrs
- Compensation: US$1.73m
Joel Murphy (60yo)
Director
- Tenure: 0.5yrs
- Compensation: US$1.41m
Tim Peterson (54yo)
Independent Director
- Tenure: 8.7yrs
- Compensation: US$103.00k
Johnny Gresham (76yo)
Independent Director
- Tenure: 5.8yrs
- Compensation: US$80.00k
Gary Coursey (79yo)
Independent Director
- Tenure: 8.9yrs
- Compensation: US$90.00k
Steve Bartkowski (66yo)
Independent Director
- Tenure: 8.7yrs
- Compensation: US$99.80k
Lenny Silverstein (60yo)
Co-Founder
- Tenure: 1.6yrs
- Compensation: US$1.73m
John Wiens (63yo)
Independent Director
- Tenure: 3.5yrs
- Compensation: US$80.00k
Company Information
Preferred Apartment Communities, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Preferred Apartment Communities, Inc.
- Ticker: APTS
- Exchange: NYSE
- Founded: 2009
- Industry: Residential REITs
- Sector: Real Estate
- Implied Market Cap: US$635.358m
- Market Cap: US$623.236m
- Shares outstanding: 46.65m
- Website: https://pacapts.com
Location
- Preferred Apartment Communities, Inc.
- 3284 Northside Parkway NW
- Suite 150
- Atlanta
- Georgia
- 30327
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| APTS | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Apr 2011 |
| P2A | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 2011 |
Biography
Preferred Apartment Communities, Inc. is a Maryland corporation formed primarily to own and operate multifamily properties and, to a lesser extent, own and operate grocery-anchored shopping centers, class  ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/21 00:26 |
| End of Day Share Price | 2019/11/20 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.