Preferred Apartment Communities
Market Cap
US$359.3m
Last Updated
2020/05/30 05:03 UTC
Data Sources
Company Financials +
Executive Summary
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, Class A office buildings, and student housing properties.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Fair value with mediocre balance sheet.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-3.9%
APTS
5.5%
US REITs
2.7%
US Market
1 Year Return
-55.5%
APTS
-9.8%
US REITs
9.1%
US Market
Return vs Industry: APTS underperformed the US REITs industry which returned -9.7% over the past year.
Return vs Market: APTS underperformed the US Market which returned 8.4% over the past year.
Shareholder returns
| APTS | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.9% | 5.5% | 2.7% |
| 30 Day | -5.7% | 1.0% | 4.5% |
| 90 Day | -26.7% | -10.5% | 2.3% |
| 1 Year | -51.6%-55.5% | -6.0%-9.8% | 11.5%9.1% |
| 3 Year | -47.0%-56.9% | 10.3%-3.4% | 30.6%22.0% |
| 5 Year | -12.1%-37.1% | 40.2%11.2% | 57.2%39.5% |
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
1 month ago | Simply Wall St
When Should You Buy Preferred Apartment Communities, Inc. (NYSE:APTS)?3 months ago | Simply Wall St
Analysts Have Been Trimming Their Preferred Apartment Communities, Inc. Price Target After Its Latest Report4 months ago | Simply Wall St
The Preferred Apartment Communities (NYSE:APTS) Share Price Is Up 34% And Shareholders Are Holding OnValuation
Is Preferred Apartment Communities undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: APTS ($7.43) is trading below our estimate of fair value ($20.97)
Significantly Below Fair Value: APTS is trading below fair value by more than 20%.
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 (0.2x) compared to the US REITs industry average (1.4x).
Next Steps
Future Growth
How is Preferred Apartment Communities forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
7.8%
Forecasted annual revenue 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 (3.1% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: APTS's revenue (3.1% 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?
-47.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: APTS is currently unprofitable.
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 -47.2% 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 (5.3%).
Return on Equity
High ROE: APTS has a negative Return on Equity (-10.39%), as it is currently unprofitable.
Next Steps
Financial Health
How is Preferred Apartment Communities's financial position?
Financial Position Analysis
Short Term Liabilities: APTS's short term assets ($291.2M) exceed its short term liabilities ($268.4M).
Long Term Liabilities: APTS's short term assets ($291.2M) do not cover its long term liabilities ($2.8B).
Debt to Equity History and Analysis
Debt Level: APTS's debt to equity ratio (157.3%) is considered high.
Reducing Debt: APTS's debt to equity ratio has increased from 129.7% to 157.3% over the past 5 years.
Balance Sheet
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 32.7% per year.
Next Steps
Dividend
What is Preferred Apartment Communities's current dividend yield, its reliability and sustainability?
15.02%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: APTS's dividend (14.13%) is higher than the bottom 25% of dividend payers in the US market (1.69%).
High Dividend: APTS's dividend (14.13%) is in the top 25% of dividend payers in the US market (4.45%)
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: APTS is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.1yrs
Average management tenure
CEO
Joel Murphy (60yo)
0.33
Tenure
US$1,980,000
Compensation
Mr. Joel T. Murphy J.D., has been Chief Executive Officer of Preferred Apartment Communities, Inc. since January 1, 2020 and also serves as its President since March 4, 2020. He has been the Chief Executiv ...
CEO Compensation Analysis
Compensation vs Market: Joel's total compensation ($USD1.98M) is about average for companies of similar size in the US market ($USD2.22M).
Compensation vs Earnings: Joel's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 2.08yrs | US$2.05m | 0.48% $1.7m | |
| President | 0.33yr | US$1.98m | 0.074% $264.3k | |
| Chief Financial Officer | 1.83yrs | US$775.00k | no data | |
| Executive VP | 10.67yrs | US$725.00k | 0.13% $456.8k | |
| Executive Vice President of Investor Relations | 0.33yr | no data | no data | |
| Executive VP | 11.33yrs | US$497.10k | 0.032% $115.1k | |
| President of Multifamily | no data | no data | 0.0037% $13.2k | |
| President of Office | 0.33yr | no data | 0.0079% $28.4k | |
| Executive VP & Chief Property Management Officer of Multifamily | 2.33yrs | no data | no data | |
| Chief Operating Officer of Preferred Campus Management | no data | no data | no data |
1.1yrs
Average Tenure
60yo
Average Age
Experienced Management: APTS's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 2.08yrs | US$2.05m | 0.48% $1.7m | |
| President | 0.33yr | US$1.98m | 0.074% $264.3k | |
| Lead Independent Director | 6.33yrs | US$189.95k | 0.17% $606.8k | |
| Independent Director | 1yr | US$81.58k | 0.018% $66.3k | |
| Independent Director | 9.17yrs | US$165.00k | 0.12% $437.5k | |
| Independent Director | 9.42yrs | US$85.00k | 0.10% $370.2k | |
| Independent Director | 9.17yrs | US$99.95k | 0.12% $430.9k | |
| Independent Director | no data | no data | 0.0076% $27.3k |
6.3yrs
Average Tenure
61yo
Average Age
Experienced Board: APTS's board of directors are considered experienced (6.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: APTS insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.3%.
Top Shareholders
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$359.265m
- Market Cap: US$332.575m
- Shares outstanding: 48.35m
- 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 |
| DXPB.N | OTCPK (Pink Sheets LLC) | 6% PFD SER A | US | USD | Nov 2018 |
Biography
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, Class A office buildings, and student housing properties. 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 for multifamily properties. As of March 31, 2020, the Company owned or was invested in 123 properties in 15 states, predominantly in the Southeast region of the United States.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/30 05:03 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.