Is Preferred Apartment Communities (APTS) A Smart Long-Term Buy?

Miller Value Partners, an investment management firm, published its “Miller Income Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Miller Income Fund (Class I) returned 2.30% in the fourth quarter of 2021 versus 0.66% for its benchmark, the ICE BofA US High Yield Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Miller Value Partners Income Strategy, in its Q4 2021 investor letter, mentioned Preferred Apartment Communities, Inc. (NYSE: APTS) and discussed its stance on the firm. Preferred Apartment Communities, Inc. is an Atlanta, Georgia-based real estate investment trust company with a $931.8 million market capitalization. APTS delivered a -2.55% return since the beginning of the year, while its 12-month returns are up by 138.16%. The stock closed at $17.60 per share on February 2, 2022.

Here is what Miller Value Partners Income Strategy has to say about Preferred Apartment Communities, Inc. in its Q4 2021 investor letter:

“Preferred Apartment Communities (APTS) was the top contributor over the quarter, advancing 49.5%. The company reported Q3 Funds from Operations (FFO) of $0.28, nicely ahead of consensus of $0.17, and the quarterly dividend of $0.175/share (4.0% annualized yield), driven by higher net operating income (NOI). Multifamily same-store revenue rose +7.5% year-over-year (Y/Y) with same-store NOI +8% and occupancy improving to 97.1%. Management raised Fiscal Year 2021 (FY21) FFO guidance by 8.9% at the midpoint to $1.00-$1.07. The company continued its asset recycling strategy over the period with the announced sale of an office property in Alabama for $55M.”

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Our calculations show that Preferred Apartment Communities, Inc. (NYSE: APTS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. APTS was in 10 hedge fund portfolios at the end of the third quarter of 2021, compared to 13 funds in the previous quarter. Preferred Apartment Communities, Inc. (NYSE: APTS) delivered a 37.93% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on APTS in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.