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.
+ 1 more risk
Second-rate dividend payer and overvalued.
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.
7 Day Return
1 Year Return
Return vs Industry: APTS underperformed the US REITs industry which returned -20.4% over the past year.
Return vs Market: APTS underperformed the US Market which returned -10.7% over the past year.
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 StAnalysts Have Been Trimming Their Preferred Apartment Communities, Inc. Price Target After Its Latest Report
2 months ago | Simply Wall StThe Preferred Apartment Communities (NYSE:APTS) Share Price Is Up 34% And Shareholders Are Holding On
3 months ago | Simply Wall StWhat Kind Of Investor Owns Most Of Preferred Apartment Communities, Inc. (NYSE:APTS)?
Is Preferred Apartment Communities undervalued compared to its fair value and its price relative to the market?
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: APTS ($7.18) is trading above our estimate of fair value ($7.05)
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 (0.2x) compared to the US REITs industry average (1.3x).
How is Preferred Apartment Communities forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
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 (11.1% per year) is forecast to grow faster than the US market (7.2% per year).
High Growth Revenue: APTS's revenue (11.1% 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
How has Preferred Apartment Communities performed over the past 5 years?
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 -36.8% 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%).
Return on Equity
High ROE: APTS has a negative Return on Equity (-0.39%), as it is currently unprofitable.
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
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 38% 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.
What is Preferred Apartment Communities's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: APTS's dividend (14.62%) is higher than the bottom 25% of dividend payers in the US market (1.95%).
High Dividend: APTS's dividend (14.62%) is in the top 25% of dividend payers in the US market (5.37%)
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 (252.7%), 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% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Joel Murphy (60yo)
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 ($USD2.13M).
Compensation vs Earnings: Joel's compensation has increased whilst the company is unprofitable.
|Executive Chairman||1.92yrs||US$2.05m||0.38% $1.3m|
|Chief Financial Officer||1.67yrs||US$775.00k||no data|
|Executive VP||10.5yrs||US$725.00k||0.091% $311.0k|
|Executive Vice President of Investor Relations||0.17yr||no data||no data|
|Executive VP||11.17yrs||US$497.10k||0.010% $35.0k|
|President of Multifamily||no data||no data||no data|
|President of Office||0.17yr||no data||no data|
|Executive VP & Chief Property Management Officer of Multifamily||2.17yrs||no data||no data|
Experienced Management: APTS's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.
|Executive Chairman||1.92yrs||US$2.05m||0.38% $1.3m|
|Lead Independent Director||6.17yrs||US$189.95k||0.17% $580.1k|
|Independent Director||0.83yr||US$81.58k||0.013% $45.3k|
|Independent Director||9yrs||US$165.00k||0.12% $418.2k|
|Independent Director||6.17yrs||US$80.00k||0.091% $313.7k|
|Independent Director||9.25yrs||US$85.00k||0.10% $353.8k|
|Independent Director||9yrs||US$99.95k||0.12% $411.9k|
|Independent Director||3.83yrs||US$148.64k||0.046% $158.1k|
Experienced Board: APTS's board of directors are considered experienced (5 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.6%.
Preferred Apartment Communities, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Preferred Apartment Communities, Inc.
- Ticker: APTS
- Exchange: NYSE
- Founded: 2009
- Industry: Residential REITs
- Sector: Real Estate
- Implied Market Cap: US$343.388m
- Market Cap: US$341.598m
- Shares outstanding: 48.43m
- Website: https://pacapts.com
- Preferred Apartment Communities, Inc.
- 3284 Northside Parkway NW
- Suite 150
- United States
|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|
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 December 31, 2019, 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||2020/04/01 00:22|
|End of Day Share Price||2020/03/31 00:00|
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.