In a report released today, Merrill Ross from Boenning & Scattergood maintained a Buy rating on Preferred Apartment Communities (APTS). The company’s shares opened today at $15.25.
Ross wrote:
“We calculate a lower NAV as a result of these revisions, in particular because we had ascribed a premium value to APTS mezz loans and options to buy, which we are now discounting for the reversal of accrued interest if the option is not exercised. APTS has successfully fueled strong cash flow growth through the issuance of redeemable preferred equity, but its resulting cost of capital is too high for it to effectively compete for the acquisition of multifamily properties unless it can negotiate a greater discounted purchase through its mezzanine loan program. We believe there will continue to be opportunities to foster growth in other property types, particularly grocery-anchored shopping centers and select cities where class A office properties have attractive cap rates.”
According to TipRanks.com, Ross is a 1-star analyst with an average return of -1.7% and a 45.2% success rate. Ross covers the Financial sector, focusing on stocks such as NexPoint Residential Trust Inc, Bluerock Residential Growth, and Gladstone Commercial Corp.
Preferred Apartment Communities has an analyst consensus of Moderate Buy.
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The company has a one-year high of $22.71 and a one-year low of $13.60. Currently, Preferred Apartment Communities has an average volume of 229.9K.
Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is negative on the stock.
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Preferred Apartment Communities, Inc. engages in the acquisition and operation of multifamily properties in select targeted markets throughout the United States. It operates through the following segments: Multifamily Communities, Financing, New Market Properties, and Office Buildings.
