Recently, I wrote an article on Preferred Apartment Communities (APTS) in which I explained:
APTS is motivated to deploy its capital being raised through the preferred channels as that is the primary moat of the organization. At some point, the company must either spin-out its non-traded business and/or its shopping center portfolio."
In the comment stream, I added:
APTS has successfully engineered a platform that utilizes low-cost preferred shares to acquire accretive properties... the company continues to fish upstream (i.e., retail and office) so it can continue to grow profits and dividends. At some point, common shareholders could suffer, as they are not in a senior position... APTS is dangerously overweight in non-traded preferred equity and investors should recognize the risk."
READ FULL ARTICLE HERE
