Despite some of our gains on Preferred Apartment Communities, Inc. (APTS) evaporating in the recent past as investors have indiscriminately sold REITs and other rate-sensitive groups as Treasury yields creep higher, this company remains a strong “BUY.”
Though headlines suggest that the housing market is strong, it’s much a “tale of two cities.” And there remains strong demand for rental housing for the many millions of Americans who—thanks to still-tight credit and the rebound in home values—have been priced out of any ability to buy a home.
APTS continues to grow its company and brand aggressively. Since late May alone, the company has announced several major new acquisitions of both apartment complexes and yet another grocery-anchored retail shopping complex (this latest one in Plano, Texas.) For a recap of all these, visit www.preferredapartmentcommunities.investorroom.com/news_releases, the news release page at APTS’ website.
On June 22, it was announced that the REIT was added to the Russell 2000 and Russell 3000 small cap indices. This will help bring added attention to the company. So, too, will its continued strong, accretive growth. At present, APTS forecasts that its FFO for 2015 will end up in a range of $1.12-$1.18 per unit.
Chris Temple, The National Investor, www.nationalinvestor.com, 847-986-6320, June 9, 2015
