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Preferred Apartment (APTS) Buys The Kingson, Shares Up 3.1%

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Preferred Apartment Communities, Inc. announced the completion of the acquisition of Fredericksburg, VA-based The Kingson on Sep 16. The buyout of this 240-unit Class A multi-family community comes as part of the company’s effort to boost its portfolio with sub-urban properties.

Reflecting positive market sentiments, shares of Preferred Apartment gained 3.1% during Wednesday trading session.

Fredericksburg is a historic and growing suburb of Washington. The suburban markets have been stable, with strong fundamentals, and witnessed solid renter demand and increasing rents. This reflects that the location is apt for Preferred Apartment to grow via acquisitions.

The acquisition seems a strategic fit as The Kingson is situated at a convenient distance to the 133-bed regional hospital and the Virginia Railway Express Station. The property enjoys rapid lease up and is well poised to benefit from its nearby quality grocery and retail operators like Publix, Target (TGT - Free Report) and Starbucks (SBUX - Free Report) . Hence, the acquired property is likely to witness a high demand.

Per John A. Isakson, chief financial officer of Preferred Apartment Communities, “Our real estate loan investment program continues to produce accretive returns, as well as a productive pipeline of excellent assets for our portfolio.”

The buyout of this Virginia property fortifies the company’s strategy of simplifying its platform by rotating capital from the non-core investments into its core multi-family business.

Earlier this month, Preferred Apartment completed the acquisition of The Anson in Nashville, TN MSA. The purchase of the newly-constructed 301-Unit Class A multi-family community resulted from the real estate loan investment, which the company originated in May 2018 to support the development of the property.

Shares of this Zacks Rank #1 (Strong Buy) company have gained 25.3% in the past six months, outperforming the industry’s 23.8% rally.

Another Key Pick

The Zacks Consensus Estimate for BRT Apartments Corp.’s (BRT - Free Report) ongoing-year FFO per share has moved 17% north over the past month. The company sports a Zacks Rank of 1, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.


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