All Is Peachy For Preferred Apartment Communities
I first recommended Preferred Apartment Communities (APTS) back in December 2014 when shares were trading at $8.65 per share, and since that time (around 2 ½ years later) APTS shares have increased by over 86%.
APTS is a holding in both my Durable Income Portfolio (+3.8% YTD) and my Small Cap REIT Portfolio (+6.54% YTD) and I have maintained a BUY Target of $15.00 per share in my Fair Value Lab.
Year-to-date APT has performed in-line with the Apartment REIT peer, as illustrated below (APTS has returned 11.1% YTD).
APTS is not just your prototypical Apartment REIT, the Atlanta-based company is a unique platform that is differentiated by design.
Upon first glance, APTS may appear to be just as the company’s name suggests – “preferred apartments” – but upon closer inspection the most compelling differentiator for the company is its sustainable dividend growth. Since going public (March 31, 2011) APTS has grown its annual dividend by 14.8%.
It’s no fluke that common stockholders (including me) have benefitted from APTS’s differentiated strategy, shares have returned 20.25% annualized since the IPO. Simply out, “I’m Glad I Took A Bite Out Of This Georgia Peach.”
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