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Preferred Apartment Communities

NYSE:APTS
Snowflake Description

Mediocre balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
APTS
NYSE
$674M
Imp Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

Preferred Apartment Communities, Inc. is a Maryland corporation formed primarily to own and operate multifamily properties and, to a lesser extent, own and operate student housing properties, grocery-anchored shopping centers and strategically located, well leased class A office buildings, all in select targeted markets throughout the United States. The last earnings update was 48 days ago. More info.


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APTS Share Price and Events
7 Day Returns
-4.4%
NYSE:APTS
1.9%
US REITs
0.1%
US Market
1 Year Returns
-1.8%
NYSE:APTS
14.3%
US REITs
1.2%
US Market
APTS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Preferred Apartment Communities (APTS) -4.4% -8.9% -2.8% -1.8% 8.1% 67.9%
US REITs 1.9% 2.5% 6% 14.3% 11.6% 28.1%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • APTS underperformed the REITs industry which returned 14.3% over the past year.
  • APTS underperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
APTS
Industry
5yr Volatility vs Market

Value

 Is Preferred Apartment Communities undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Preferred Apartment Communities to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Preferred Apartment Communities.

NYSE:APTS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:APTS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.49
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.493 (1 + (1- 21%) (433.76%))
1.793
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.79
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.793 * 5.96%)
13.42%

Discounted Cash Flow Calculation for NYSE:APTS using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for Preferred Apartment Communities is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Preferred Apartment Communities is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

NYSE:APTS DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (USD, Millions) Source Present Value
Discounted (@ 13.42%)
2019 56.25 Analyst x3 49.59
2020 61.65 Analyst x3 47.93
2021 62.61 Analyst x1 42.91
2022 65.89 Analyst x1 39.82
2023 63.21 Analyst x1 33.69
2024 64.29 Est @ 1.7% 30.21
2025 65.58 Est @ 2.01% 27.17
2026 67.04 Est @ 2.23% 24.49
2027 68.63 Est @ 2.38% 22.11
2028 70.34 Est @ 2.48% 19.97
Present value of next 10 years cash flows $337.89
NYSE:APTS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $70.34 × (1 + 2.73%) ÷ (13.42% – 2.73%)
$676.26
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $676.26 ÷ (1 + 13.42%)10
$192.05
NYSE:APTS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $337.89 + $192.05
$529.93
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $529.93 / 44.23
$11.98
NYSE:APTS Discount to Share Price
Calculation Result
Value per share (USD) From above. $11.98
Current discount Discount to share price of $15.03
= -1 x ($15.03 - $11.98) / $11.98
-25.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Preferred Apartment Communities is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Preferred Apartment Communities's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Preferred Apartment Communities's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:APTS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-1.61
NYSE:APTS Share Price ** NYSE (2019-06-18) in USD $15.03
United States of America REITs Industry PE Ratio Median Figure of 155 Publicly-Listed REITs Companies 33.34x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Preferred Apartment Communities.

NYSE:APTS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:APTS Share Price ÷ EPS (both in USD)

= 15.03 ÷ -1.61

-9.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Preferred Apartment Communities is loss making, we can't compare its value to the US REITs industry average.
  • Preferred Apartment Communities is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Preferred Apartment Communities's expected growth come at a high price?
Raw Data
NYSE:APTS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -9.32x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
-16.5%per year
United States of America REITs Industry PEG Ratio Median Figure of 142 Publicly-Listed REITs Companies 2.49x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Preferred Apartment Communities, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Preferred Apartment Communities's assets?
Raw Data
NYSE:APTS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $39.30
NYSE:APTS Share Price * NYSE (2019-06-18) in USD $15.03
United States of America REITs Industry PB Ratio Median Figure of 191 Publicly-Listed REITs Companies 1.87x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:APTS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:APTS Share Price ÷ Book Value per Share (both in USD)

= 15.03 ÷ 39.30

0.38x

* Primary Listing of Preferred Apartment Communities.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Preferred Apartment Communities is good value based on assets compared to the US REITs industry average.
X
Value checks
We assess Preferred Apartment Communities's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Preferred Apartment Communities has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Preferred Apartment Communities expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-16.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Preferred Apartment Communities expected to grow at an attractive rate?
  • Unable to compare Preferred Apartment Communities's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Preferred Apartment Communities's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • Preferred Apartment Communities's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:APTS Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:APTS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts -16.5%
NYSE:APTS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 15.6%
United States of America REITs Industry Earnings Growth Rate Market Cap Weighted Average 6.3%
United States of America REITs Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:APTS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:APTS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 877 -206 1
2022-12-31 775 -183 1
2021-12-31 670 -165 1
2020-12-31 556 -149 2
2019-12-31 477 -125 2
NYSE:APTS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 418 140 -66
2018-12-31 397 145 -43
2018-09-30 373 128 -68
2018-06-30 343 117 -70
2018-03-31 318 99 -56
2017-12-31 294 86 -36
2017-09-30 271 78 -30
2017-06-30 250 71 -28
2017-03-31 225 67 -25
2016-12-31 200 62 -51
2016-09-30 175 61 -41
2016-06-30 151 50 -34

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Preferred Apartment Communities is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Preferred Apartment Communities's revenue is expected to grow by 15.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:APTS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Preferred Apartment Communities Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:APTS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2019-12-31
NYSE:APTS Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -1.61
2018-12-31 -1.08
2018-09-30 -1.75
2018-06-30 -1.88
2018-03-31 -1.61
2017-12-31 -1.13
2017-09-30 -1.05
2017-06-30 -1.04
2017-03-31 -0.99
2016-12-31 -2.11
2016-09-30 -1.75
2016-06-30 -1.49

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Preferred Apartment Communities will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Preferred Apartment Communities's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Preferred Apartment Communities has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Preferred Apartment Communities performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Preferred Apartment Communities's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Preferred Apartment Communities does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Preferred Apartment Communities's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Preferred Apartment Communities's 1-year growth to the US REITs industry average as it is not currently profitable.
Earnings and Revenue History
Preferred Apartment Communities's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Preferred Apartment Communities Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:APTS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 418.41 -65.97 18.73
2018-12-31 397.27 -43.29 17.61
2018-09-30 372.64 -68.17 19.14
2018-06-30 343.31 -70.33 18.32
2018-03-31 317.81 -56.30 17.56
2017-12-31 294.01 -35.99 16.75
2017-09-30 271.34 -30.33 15.71
2017-06-30 249.98 -27.56 14.77
2017-03-31 224.94 -24.77 14.12
2016-12-31 200.12 -50.63 13.54
2016-09-30 175.04 -40.80 11.88
2016-06-30 151.46 -33.98 11.01
2016-03-31 129.70 -28.42 9.30
2015-12-31 109.31 -21.17 8.22
2015-09-30 95.44 -16.74 7.26
2015-06-30 78.66 -15.06 6.06
2015-03-31 66.64 -10.58 5.47
2014-12-31 56.54 -5.31 4.74
2014-09-30 46.21 -2.55 3.99
2014-06-30 41.78 1.68 3.51
2014-03-31 38.04 -9.39 3.17
2013-12-31 32.13 -14.99 2.85
2013-09-30 23.48 -15.51 2.59
2013-06-30 17.97 -14.65 2.44
2013-03-31 12.50 -4.70 2.23
2012-12-31 12.49 -0.61 2.18
2012-09-30 11.38 -2.00 1.95
2012-06-30 10.77 -4.88 1.76

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Preferred Apartment Communities has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Preferred Apartment Communities used its assets less efficiently than the US REITs industry average last year based on Return on Assets.
  • It is difficult to establish if Preferred Apartment Communities improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Preferred Apartment Communities's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Preferred Apartment Communities has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Preferred Apartment Communities's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Preferred Apartment Communities's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Preferred Apartment Communities is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Preferred Apartment Communities's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Preferred Apartment Communities's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Preferred Apartment Communities Company Filings, last reported 2 months ago.

NYSE:APTS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,699.57 2,921.81 80.40
2018-12-31 1,609.39 2,626.69 38.96
2018-09-30 1,512.38 2,464.08 26.84
2018-06-30 1,433.48 2,309.81 21.30
2018-03-31 1,360.83 1,895.96 19.71
2017-12-31 1,280.77 1,843.43 21.04
2017-09-30 1,170.15 1,641.44 17.05
2017-06-30 1,077.40 1,468.76 13.06
2017-03-31 967.26 1,497.90 13.37
2016-12-31 885.26 1,465.09 12.32
2016-09-30 784.75 1,276.59 10.46
2016-06-30 686.92 1,026.94 5.72
2016-03-31 605.83 868.41 4.70
2015-12-31 525.45 708.78 2.44
2015-09-30 443.55 632.03 8.05
2015-06-30 390.19 496.40 6.87
2015-03-31 335.09 434.84 7.61
2014-12-31 291.58 381.88 3.11
2014-09-30 242.96 428.96 13.59
2014-06-30 196.43 178.10 9.68
2014-03-31 176.14 172.88 9.11
2013-12-31 166.05 169.91 9.18
2013-09-30 121.69 152.43 5.45
2013-06-30 112.66 141.65 7.54
2013-03-31 101.78 114.68 5.45
2012-12-31 50.06 70.44 2.97
2012-09-30 43.59 70.64 2.50
2012-06-30 42.03 55.64 2.93
  • Preferred Apartment Communities's level of debt (171.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (98.1% vs 171.9% today).
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.

  • Whilst loss making Preferred Apartment Communities has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Preferred Apartment Communities has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -39.7% per year.
X
Financial health checks
We assess Preferred Apartment Communities's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Preferred Apartment Communities has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Preferred Apartment Communities's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.99%
Current annual income from Preferred Apartment Communities dividends. Estimated to be 7.13% next year.
If you bought $2,000 of Preferred Apartment Communities shares you are expected to receive $140 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Preferred Apartment Communities's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Preferred Apartment Communities's dividend is above the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:APTS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America REITs Industry Average Dividend Yield Market Cap Weighted Average of 185 Stocks 3.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:APTS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.05 1.00
2022-12-31 1.05 1.00
2021-12-31 1.05 1.00
2020-12-31 1.10 3.00
2019-12-31 1.07 4.00
NYSE:APTS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-02 1.050 6.562
2019-02-21 1.040 6.771
2018-11-01 1.040 6.766
2018-08-02 1.020 5.911
2018-04-30 1.020 6.544
2018-02-01 1.000 6.924
2017-10-23 1.000 5.061
2017-08-07 0.940 5.055
2017-04-17 0.940 5.988
2017-02-02 0.880 6.492
2016-11-03 0.880 6.385
2016-08-04 0.810 6.000
2016-05-05 0.810 5.703
2016-02-04 0.770 6.354
2015-11-05 0.770 6.519
2015-08-06 0.720 6.677
2015-04-29 0.720 6.644
2015-02-05 0.700 6.582
2014-11-03 0.700 7.727
2014-08-07 0.640 7.482
2014-05-08 0.640 7.273
2014-02-06 0.640 7.865
2013-11-07 0.640 8.025
2013-08-09 0.600 7.245
2013-05-09 0.600 6.928
2013-02-07 0.580 6.241
2012-11-01 0.580 7.212
2012-08-02 0.560 6.748
2012-05-11 0.520 7.128
2012-02-02 0.520 6.776
2011-11-10 0.500 8.240
2011-08-15 0.500 7.848
2011-05-05 0.500 5.922

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Preferred Apartment Communities has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Preferred Apartment Communities only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Preferred Apartment Communities's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (83.5x coverage).
X
Income/ dividend checks
We assess Preferred Apartment Communities's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Preferred Apartment Communities afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Preferred Apartment Communities has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Preferred Apartment Communities's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dan DuPree
COMPENSATION $1,732,607
AGE 71
TENURE AS CEO 1.2 years
CEO Bio

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 Apartment Communities, Inc. since August 2012 until April 16, 2018. He served as Chief Investment Officer of Preferred Apartment Communities, Inc. since January 01, 2014 until April 16, 2018. He served as the Chief Executive Officer of The Reynolds Companies from March 2009 to March 2012. He served as the President and Chief Operating Officer of Cousins Properties Inc. from April 18, 2007 to February 2009. In this role, he focused on a variety of key initiatives, including developing joint ventures, identifying distressed acquisition and development opportunities and insuring the performance of Cousins' recently developed retail portfolio. During his previous tenure with Cousins Properties Inc. from October 1992 to April 2001, Mr. DuPree served as Senior Vice President since April 1993 and Senior Executive Vice President since April 1995. He serves as Director of NELL Partners, Inc. and serves as its Executive Officer. He has over 47 years of commercial real estate experience in development, leasing and property management which include the execution of more than 50 commercial projects totaling more than 16 million square feet and the management of more than 30 JV partnerships. He has also deep experience in managing large organizations. He served as the Chief Executive Officer of Barry Real Estate Companies, Inc. from September 2002 to March 2003. In 1984, Mr. DuPree founded New Market Development Company, Ltd., where he developed nearly 6 million square feet of retail space across the U.S. before selling New Market Development Company to Cousins in 1992. From 1976 to 1982, Mr. DuPree served as an Executive Vice President for Post Properties, Inc. where he was responsible for shopping center management, leasing and development. From 1974 to 1976, he was a commercial real estate broker for Coldwell Banker and Company. From 1984 to 1992, he served as President and Chief Executive Officer of New Market Companies, Inc. and affiliates. He served as Vice Chairman of Cousins Properties Inc. from February 2009 to March 15, 2009 and also previously since March 2003. He has been an Independent Director of Preferred Apartment Communities, Inc. since March 31, 2011 and served as its Lead Independent Director until December 31, 2013. Mr. DuPree served as a Director of Cousins Properties Inc. until March 15, 2009. He has served as Capital Campaign Chair of the Atlanta Community Food Bank, as Board Chair of the Midtown Alliance and as Transportation Committee Chair for the Metropolitan Atlanta Chamber of Commerce. He is a board member of both the University of Florida, College of Business Administration and the Wake Forest University Calloway School of Business. Mr. DuPree holds a Bachelor of Science Business Administration from the University of Florida.

CEO Compensation
  • Dan's compensation has increased whilst company is loss making.
  • Dan's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Preferred Apartment Communities management team in years:

2.8
Average Tenure
59
Average Age
  • The tenure for the Preferred Apartment Communities management team is about average.
Management Team

Dan DuPree

TITLE
Chairman & CEO
COMPENSATION
$2M
AGE
71
TENURE
1.2 yrs

Lenny Silverstein

TITLE
Co-Founder
COMPENSATION
$2M
AGE
59
TENURE
6.8 yrs

John Isakson

TITLE
CFO & Executive VP
COMPENSATION
$1M
AGE
47
TENURE
0.9 yrs

Mike Cronin

TITLE
Executive VP
COMPENSATION
$688K
AGE
63
TENURE
9.8 yrs

Jeffrey Sprain

TITLE
Executive VP
COMPENSATION
$497K
AGE
46
TENURE
10.4 yrs

Joel Murphy

TITLE
Director
COMPENSATION
$1M
AGE
59
TENURE
4.8 yrs

Paul Cullen

TITLE
Executive VP & Chief Marketing Officer
TENURE
2.8 yrs

Jeff Sherman

TITLE
Executive VP & MD of Multifamily

Rob Gayle

TITLE
Chief Operating Officer of Preferred Residential Management LLC
TENURE
0.8 yrs

Kimberly Hodge

TITLE
Executive VP & Chief Property Management Officer
TENURE
1.4 yrs
Board of Directors Tenure

Average tenure and age of the Preferred Apartment Communities board of directors in years:

5.4
Average Tenure
62
Average Age
  • The tenure for the Preferred Apartment Communities board of directors is about average.
Board of Directors

Dan DuPree

TITLE
Chairman & CEO
COMPENSATION
$2M
AGE
71
TENURE
1.2 yrs

Lenny Silverstein

TITLE
Co-Founder
COMPENSATION
$2M
AGE
59
TENURE
1.2 yrs

Steve Bartkowski

TITLE
Independent Director
COMPENSATION
$100K
AGE
65
TENURE
8.3 yrs

Gary Coursey

TITLE
Independent Director
COMPENSATION
$90K
AGE
78
TENURE
8.5 yrs

Timothy Peterson

TITLE
Independent Director
COMPENSATION
$103K
AGE
53
TENURE
8.3 yrs

Howard McLure

TITLE
Lead Independent Director
COMPENSATION
$103K
AGE
61
TENURE
5.4 yrs

Johnny Gresham

TITLE
Independent Director
COMPENSATION
$80K
AGE
75
TENURE
5.4 yrs

John Wiens

TITLE
Independent Director
COMPENSATION
$80K
AGE
62
TENURE
3.1 yrs

Sara Finley

TITLE
Independent Director
AGE
57
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Dec 18 Sell William Gresham Individual 10. Dec 18 10. Dec 18 -1,800 $14.91 $-26,838
04. Sep 18 Sell Timothy Peterson Individual 29. Aug 18 29. Aug 18 -5,500 $18.11 $-99,605
08. Aug 18 Sell Michael Cronin Individual 08. Aug 18 08. Aug 18 -16,460 $17.11 $-281,631
X
Management checks
We assess Preferred Apartment Communities's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Preferred Apartment Communities has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Much Are Preferred Apartment Communities, Inc. (NYSE:APTS) Insiders Taking Off The Table?

So before you buy or sell Preferred Apartment Communities, Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for Preferred Apartment Communities The Last 12 Months Of Insider Transactions At Preferred Apartment Communities In the last twelve months, the biggest single sale by an insider was when the Executive VP, Michael Cronin, sold US$282k worth of shares at a price of US$17.11 per share. … The insider transactions at Preferred Apartment Communities are not inspiring us to buy.

Simply Wall St -

Does It Make Sense To Buy Preferred Apartment Communities, Inc. (NYSE:APTS) For Its Yield?

(NYSE:APTS) from a dividend investor's perspective. Owning a strong dividend company and reinvesting the dividends is widely seen as an attractive way of growing your wealth.. … In this case, Preferred Apartment Communities likely looks attractive to dividend investors, given its 6.6% dividend yield and eight-year payment history.! … NYSE:APTS Historical Dividend Yield, May 8th 2019

Simply Wall St -

The Preferred Apartment Communities (NYSE:APTS) Share Price Has Gained 87% And Shareholders Are Hoping For More

Preferred Apartment Communities isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth. … In the last 5 years Preferred Apartment Communities saw its revenue grow at 44% per year.

Simply Wall St -

Is Preferred Apartment Communities, Inc. (NYSE:APTS) A Healthy REIT?

Preferred Apartment Communities, Inc. … real estate investment trust (REIT) based in Atlanta, United States. … This term is very common in the REIT investing world as it provides a cleaner look at its cash flow from daily operations by excluding impact of one-off activities or non-cash items such as depreciation.

Simply Wall St -

How Many Insiders Sold Preferred Apartment Communities, Inc. (NYSE:APTS) Shares?

We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price. … All up, insiders sold more shares in Preferred Apartment Communities than they bought, over the last year … It's not ideal to see that insiders have sold at around the current price

Simply Wall St -

Could Preferred Apartment Communities Inc's (NYSE:APTS) Investor Composition Influence The Stock Price?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Preferred Apartment Communities is not a large company by global standards.

Simply Wall St -

Is Preferred Apartment Communities Inc (NYSE:APTS) A Healthy REIT?

Preferred Apartment Communities Inc is a US$656m. … real estate investment trust (REIT) based in Atlanta, United States. … See our latest analysis for Preferred Apartment Communities

Simply Wall St -

Should You Be Worried When Preferred Apartment Communities Inc’s (NYSE:APTS) Insiders Sell?

Preferred Apartment Communities is one of United States’s. … some insider selling over the past three months, with insiders divesting from. … A research published in The MIT Press (1998) concluded that stocks following insider selling fell 2.7% compared to the market

Simply Wall St -

Is Preferred Apartment Communities Inc (NYSE:APTS) A Healthy REIT?

Preferred Apartment Communities Inc is a US$632.38m. … REITs own and operate income-generating property and adhere to a different set of regulations. … View out our latest analysis for Preferred Apartment Communities

Simply Wall St -

Preferred Apartment Communities Inc (NYSE:APTS): Dividend Is Coming In 5 Days, Should You Buy?

On the 16 July 2018, Preferred Apartment Communities Inc (NYSE:APTS) will be paying shareholders an upcoming dividend amount of $0.26 per share. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

Company Info

Description

Preferred Apartment Communities, Inc. is a Maryland corporation formed primarily to own and operate multifamily properties and, to a lesser extent, own and operate student housing properties, grocery-anchored shopping centers and strategically located, well leased class A office buildings, all in select targeted markets throughout the United States. As part of our business strategy, we may enter into forward purchase contracts or purchase options for to-be-built multifamily communities and we may make real estate related loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities. As a secondary strategy, we may acquire or originate senior mortgage loans, subordinate loans or real estate loans secured by interests in multifamily properties, membership or partnership interests in multifamily properties and other multifamily related assets and invest a lesser portion of our assets in other real estate related investments, including other income-producing property types, senior mortgage loans, subordinate loans or real estate loans secured by interests in other income-producing property types, membership or partnership interests in other income-producing property types as determined by our manager as appropriate for us. At March 31, 2019, the Company was the approximate 97.9% owner of Preferred Apartment Communities Operating Partnership, L.P., the Company's operating partnership. Preferred Apartment Communities, Inc. has elected to be taxed as a real estate investment trust under the Internal Revenue Code of 1986, as amended, commencing with its tax year ended December 31, 2011.

Details
Name: Preferred Apartment Communities, Inc.
APTS
Exchange: NYSE
Founded: 2009
$673,604,227
$651,542,068
44,228,774
Website: http://pacapts.com
Address: Preferred Apartment Communities, Inc.
3284 Northside Parkway NW,
Suite 150,
Atlanta,
Georgia, 30327,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE APTS Common Stock New York Stock Exchange US USD 01. Apr 2011
DB P2A Common Stock Deutsche Boerse AG DE EUR 01. Apr 2011
Number of employees
Current staff
Staff numbers
0
Preferred Apartment Communities employees.
Industry
Residential REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 00:29
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/10
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.