NYSE:APTS

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Preferred Apartment Communities

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.


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

3.1%

APTS

4.9%

US REITs

4.0%

US Market


1 Year Return

-50.4%

APTS

-9.7%

US REITs

5.0%

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 5% over the past year.


Shareholder returns

APTSIndustryMarket
7 Day3.1%4.9%4.0%
30 Day-7.8%-2.4%0.9%
90 Day38.0%23.3%29.5%
1 Year-45.7%-50.4%-5.9%-9.7%7.2%5.0%
3 Year-39.1%-50.9%16.3%2.0%36.2%27.3%
5 Year-2.2%-30.5%43.8%14.2%65.4%47.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: APTS ($7.59) is trading below our estimate of fair value ($20.26)

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 4 analysts?

10.6%

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 (10.7% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: APTS's revenue (10.7% 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?

-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?

13.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: APTS's dividend (13.83%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: APTS's dividend (13.83%) is in the top 25% of dividend payers in the US market (4.5%)


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: APTS's dividends in 3 years are forecast to be thoroughly covered by earnings (1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Joel Murphy (61yo)

0.50

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 ($USD1.98M) is about average for companies of similar size in the US market ($USD2.15M).

Compensation vs Earnings: Joel's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel DuPree
Executive Chairman2.25yrsUS$2.05m0.48% $1.8m
Joel Murphy
President0.50yrUS$1.98m0.67% $2.5m
John Isakson
Chief Financial Officer2yrsUS$775.00k0.10% $371.8k
Michael Cronin
Executive VP10.83yrsUS$725.00k0.15% $541.0k
Paul Cullen
Executive Vice President of Investor Relations0.50yrno datano data
Jeffrey Sprain
Executive VP11.5yrsUS$497.10k0.054% $197.3k
Jeffery Sherman
President of Multifamilyno datano data0.040% $146.3k
Boone DuPree
President of Office0.50yrno data0.044% $161.8k
Kimberly Hodge
Executive VP & Chief Property Management Officer of Multifamily2.5yrsno datano data
William Barkwell
Chief Operating Officer of Preferred Campus Managementno datano datano data

1.3yrs

Average Tenure

61yo

Average Age

Experienced Management: APTS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Daniel DuPree
Executive Chairman2.25yrsUS$2.05m0.48% $1.8m
Joel Murphy
President0.50yrUS$1.98m0.67% $2.5m
Howard McLure
Lead Independent Director6.5yrsUS$189.95k0.19% $704.9k
Sara Finley
Independent Director1.17yrsUS$81.58k0.042% $152.7k
Timothy Peterson
Independent Director9.33yrsUS$165.00k0.14% $532.0k
Gary Coursey
Independent Director9.58yrsUS$85.00k0.13% $463.1k
Steve Bartkowski
Independent Director9.33yrsUS$99.95k0.14% $525.1k
John Cannon
Independent Director0.17yrno data0.031% $112.9k

4.4yrs

Average Tenure

62yo

Average Age

Experienced Board: APTS's board of directors are considered experienced (4.4 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$367.002m
  • Market Cap: US$361.122m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APTSNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2011
P2ADB (Deutsche Boerse AG)YesCommon StockDEEURApr 2011
DXPB.NOTCPK (Pink Sheets LLC)6% PFD SER AUSUSDNov 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 00:20
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.