Notable Stock to Watch: Preferred Apartment Communities (NYSE: APTS)

Preferred Apartment Communities (NYSE: APTS) (APTS) changed -2.84% to recent value of $14.02. The stock transacted 371237 shares during most recent day however it has an average volume of 260.06K shares. It spotted trading -24.62% off 52-week high price. On the other end, the stock has been noted 6.70% away from the low price over the last 52-weeks.

On July 25, 2019, Preferred Apartment Communities (NYSE: APTS) announced that it acquired CapTrust Tower, a 300,389 square foot office building located in the North Hills submarket of Raleigh, North Carolina. Developed in 2010, the 16-story property includes nine levels of office space atop a six-level parking podium and popular ground floor retail. The property is currently 100% leased with more than seven years of contractual, weighted average term remaining under the leases. Kane Realty Corporation will lease and manage the building.

PAC acquired CapTrust Tower through its subsidiary, Preferred Office Properties.  Boone DuPree, President and Chief Executive Officer for Preferred Office Properties, stated: Raleigh is a strategic market for the Company, and this ‘core’ profile acquisition grows our local presence and offers entry into the high performing North Hills submarket, which is a one-of-a-kind environment with unmatched walkable amenities for our customers. Mr. DuPree added, We are excited to expand our business in this way, and to continue our relationship with premier local developer and operator, Kane Realty.

This acquisition increases the Preferred Office Properties portfolio to approximately 2.9 million square feet. The Company financed the acquisition utilizing a non-recourse first mortgage loan from John Hancock. The first mortgage loan is for a ten-year term and is interest-only for the full term. There are no loan guaranties provided by PAC or our operating partnership.

 APTS has a gross margin of 78.30% and an operating margin of 19.00% while its profit margin remained -15.80% for the last 12 months. Its earnings per share (EPS) expected to touch remained 4.10% for this year while earning per share for the next 5-years is expected to reach at 7.00%.

 The company has 44.5M of outstanding shares and 42.88M shares were floated in the market. The price moved ahead of -5.33% from the mean of 20 days, -9.11% from mean of 50 days SMA and performed -9.83% from mean of 200 days price. Company’s performance for the week was -5.01%, -3.31% for month and YTD performance remained -0.28%.

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