All Is Peachy For Preferred Apartment Communities

Now let’s compare the P/FFO multiple with the peers:

In summary, there are risks: (1) small market cap, (2) outsized exposure to preferred shares, (3) multiple property sectors, and (4) external management. However, APTS has developed a track record for successfully growing its dividend.

I am maintaining a BUY rating, as I believe that shares will continue to grow. I would like to see the company (a) internalize management, (b) pay a monthly dividend, and (c) stay committed to “food & shelter” until such time that the company spins off the “food”.