ATLANTA,, November 19, 2020 / PRNewswire / – Preferred Apartment Communities, Inc. (NYSE: APTS) (“PAC” or the “Company”) today announced its intention to repurchase 208,786 shares (the “Called Shares”) of its redeemable preferred shares 6.00% Series A Shares (the “Series A Preferred Shares”), representing approximately 11% of the total outstanding shares of the Series A Preferred Shares, on November 24, 2020 (the “Redemption Date”). The called shares represent approximately 80% of all Series A preferred shares currently available for redemption at the option of the Company. The Series A preferred shares will be redeemed at their initial declared value of $ 1,000 per share, plus accrued and unpaid dividends up to and including the Redemption Date for 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 raise capital to simplify our focus on our suburban multi-family Sunbelt business and realign our balance sheet. The successful adoption of both proposals at our special meeting of shareholders today has not only improved our corporate governance, but also allows us to better manage our balance sheet and cost structure. $ 208.8 million of our 6% Series A preferred shares is consistent with these objectives. The remaining net proceeds from the sale of student housing could be used for additional investments in our core Sunbelt multi-family business through acquisitions or mezzanine investment loans and for other general business purposes, which may include the repurchase of additional preferred shares ”, declared Joel T. Murphy, President and CEO of Preferred Apartment Communities.
At November 20, 2020, the Company will pay the cash dividend on the Series A preferred shares of $ 5.00 for the period of October 1, 2020 To October 31, 2020 to each registrant on October 31, 2020. This payment will be separate and distinct from the payment of the Redemption Price on the Redemption Date.
Dividends on the Series A Preferred Shares that are to be redeemed will cease to accrue on the redemption date. Upon redemption, the repurchased Series A preferred shares will no longer be outstanding and all rights of the holders of such shares will cease, except the right of the holders to receive the money payable upon such redemption, without interest.
As specified in the redemption notice, the Series A Preference Shares held in book-entry form through the Depository Trust Company (“DTC”) will be redeemed in accordance with DTC procedures and the shares Series A preferred shares held through the records of Computershare Trust Company, NA (the “Redemption Agent”) will be automatically redeemed by the Redemption Agent.
The address of the Redemption Agent is as follows:
Computershare Trust Company, NA
150 Rue Royale
Canton, MA 02021
Attention: Corporate actions
Telephone: (800) 546-5141
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 multi-family properties, with selected investments in shopping centers anchored in grocery stores and office buildings Category A. The investment objective of Preferred Apartment Communities is to generate attractive and stable returns for shareholders by investing in income-generating properties and by acquiring or issuing real estate loans. From September 30, 2020, the Company owned or invested in 125 properties in 15 states, primarily in the Southeastern United States. Learn more about www.pacapts.com.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements may be identified by the use of forward-looking terminology such as “May”, “trend”, “will”, “expects”, “plans”, “estimates”, “anticipates”, “projects”, “intends”, “believes”, “goals “,” The objectives “,” the prospects “and similar expressions. These forward-looking statements include, without limitation, statements regarding the intended use of the products. Since these statements include risks, uncertainties and contingencies, actual results or actions may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by these forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, (a) the impact of the coronavirus pandemic (COVID-19) on PAC’s business operations and the economic conditions of the markets in which PAC operates; (b) PAC’s ability to mitigate impacts arising from COVID-19 and (c) those disclosed in documents filed by PAC with the Securities and Exchange Commission. PAC assumes no obligation to update these forward-looking statements to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unforeseen events, except as required by law.
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SOURCE Preferred Apartment Communities, Inc.