Preferred Apartment Communities, Inc. (NYSE: APTS) today announced that it intends to redeem 208,786 shares of its 6.00% Series A Redeemable Preferred Stock, representing approximately 11% of the total outstanding shares of Series A Preferred Stock, on November 24, 2020. The Called Shares represent approximately 80% of all Series A Preferred Stock currently available to call at the Company's option. The shares of Series A Preferred Stock will be redeemed at their initial stated value of $1,000 per share, plus accrued and unpaid dividends up to, and including, the Redemption Date in an amount equal to $4.00 per share, for total proceeds of $1,004.00 per share (the "Redemption Price"). Payment of the Redemption Price will be made in cash.
"The recently completed sale of our student housing assets has allowed us to harvest capital to simplify our focus to our core suburban Sunbelt multifamily business and realign our balance sheet. The successful passage of the two proposals at our Special Stockholders Meeting today has not only enhanced our corporate governance, but also allows us to better manage our balance sheet and cost structure. This redemption of approximately $208.8 million of our 6% Series A Preferred Stock is consistent with these objectives. The remaining net proceeds from the student housing sale could be used for additional investments in our core Sunbelt multifamily business through acquisitions or mezzanine investment loans and for other general business purposes, which may include redeeming additional preferred stock," stated Joel T. Murphy, Preferred Apartment Communities' President and Chief Executive Officer.
On November 20, 2020, the Company will pay the cash dividend on the Series A Preferred Stock of $5.00 for the period from October 1, 2020 to October 31, 2020 to each holder of record on October 31, 2020. Such payment will be separate and distinct from the payment of the Redemption Price on the Redemption Date.
Dividends on the shares of Series A Preferred Stock that are to be redeemed will cease to accrue on the Redemption Date. Upon redemption, the redeemed shares of Series A Preferred Stock will no longer be outstanding, and all rights of the holders of such shares will terminate, except the right of the holders to receive the cash payable upon such redemption, without interest.
As specified in the notice of redemption, shares of Series A Preferred Stock held in book-entry form through the Depository Trust Company ("DTC") will be redeemed according to DTC's procedures and shares of Series A Preferred Stock held through the records of Computershare Trust Company, N.A. (the "Redemption Agent") will be automatically redeemed by the Redemption Agent.
About Preferred Apartment Communities, Inc.
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 and Class A office buildings. 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. As of September 30, 2020, the Company owned or was invested in 125 properties in 15 states, predominantly in the Southeast region of the United States. Learn more at www.pacapts.com.
