UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 14, 2020
Preferred Apartment Communities, Inc.
(Exact Name of Registrant as Specified in its Charter)
Maryland
001-34995
27-1712193
(State or other Jurisdiction
of Incorporation)
(Commission File Number)
(I.R.S. Employer
Identification No.)
3284 Northside Parkway NW, Suite 150
30327
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code:  (770) 818-4100
_____________________
(Former name or former address, if changed since last report)
___________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Title of each class

Trading Symbol
Name of each exchange on which registered

Common Stock, par value $.01 per share
APTS
NYSE
Securities registered pursuant to Section 12(g) of the Act:
Title of each class
Series A Redeemable Preferred Stock, par value $0.01 per share
Warrant to Purchase Common Stock, par value $0.01 per share
Series M Redeemable Preferred Stock, par value $0.01 per share
Series A1 Redeemable Preferred Stock, par value $0.01 per share
Series M1 Redeemable Preferred Stock, par value $0.01 per share

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨





Item 7.01    Regulation FD Disclosure.

Preferred Apartment Communities, Inc. (the "Company") issued a press release on July 14, 2020, regarding the Company's updates related to April, May and June 2020 rent collections. A copy of that press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein. In addition, the Company has posted to its website a business update presentation dated July 14, 2020 which is furnished as Exhibit 99.2 to this report and is incorporated herein by reference.

The information contained in this Item 7.01, including the information contained in the press release attached as Exhibit 99.1 and the presentation attached as Exhibit 99.2 hereto, is being “furnished" and shall not be deemed to be “filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. Reference to the Company’s website in the press release attached as Exhibit 99.1 to this Current Report on Form 8-K and in the presentation attached as Exhibit 99.2 to this Current Report on Form 8-K do not incorporate by reference the information on such website into this Current Report on Form 8-K and the Company disclaims any such incorporation by reference.

Item 9.01    Financial Statements and Exhibits.

(d)    Exhibits.

Exhibit Number

Description

99.1
99.2






SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
PREFERRED APARTMENT COMMUNITIES, INC.
(Registrant)

Date: July 14, 2020
By:
/s/ Jeffrey R. Sprain
 
 
Jeffrey R. Sprain
 
 
Executive Vice President, General Counsel and Corporate Secretary



Exhibit

Preferred Apartment Communities, Inc. Provides Rent Collection Updates

Atlanta, GA, July 14, 2020

Preferred Apartment Communities, Inc. (NYSE: APTS) ("PAC" or the "Company") today provided updates on the following cash rental collections1 activity, as of July 10, 2020 for the months of April, May & June:

MULTIHOUSING
Multifamily
Student Housing
April:     97% Collected
April:     97% Collected
May:    97% Collected
May:     96% Collected
June:    97% Collected
June:     96% Collected
GROCERY-ANCHORED RETAIL
April:     91% Collected
May:     86% Collected
June:    80% Collected2 

OFFICE
April:     98% Collected
May:     96% Collected
June:     94% Collected2 

1 Does not include negotiated deferred rent.
2 Including GSA leases paid in arrears.

"We believe these cash collection updates for the past three months support the view that our well-positioned and diversified portfolio should be able to navigate the current pandemic as it continues to evolve. This update also shows the consistency we continue to see across our business lines. We are especially pleased with our grocery-anchored retail business and our ability to collect rent for prior months as we move forward. This can be seen in the continued improvement in percentage collection from our previous updates released on April 24th, May 11th and June 4th," said Joel Murphy, President and Chief Executive Officer.

More complete details about these monthly collections and other business updates are included in a presentation on our website here: July 2020 Business Update. The Company will provide additional updates with its second quarter 2020 earnings results, which we intend to release on August 10, 2020, followed by our earnings call on August 11, 2020 at 11:00 am Eastern Time.

Additional information on how the Company is striving to protect and support our tenants, associates and local work force in connection with the COVID-19 pandemic can be found at https://pacapts.com/covid19/.




About Preferred Apartment Communities, Inc.
Preferred Apartment Communities, Inc. (NYSE: APTS) is a real estate investment trust engaged primarily in the ownership and operation of Class A multifamily properties, with select investments in grocery anchored shopping centers, Class A office buildings, and student housing properties. Preferred Apartment Communities’ investment objective is to generate attractive, stable returns for stockholders by investing in income-producing properties and acquiring or originating real estate loans. As of March 31, 2020, we owned or were invested in 123 properties in 15 states, predominantly in the Southeast region of the United States. Learn more at www.pacapts.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of forward-looking terminology such as "may," "trend," "will," "expects," "plans," "estimates," "anticipates," "projects," "intends," "believes," "goals," "objectives," "outlook" and similar expressions. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, (a) the impact of the coronavirus (COVID-19) pandemic on PAC’s business operations and the economic conditions in the markets in which PAC operates; (b) PAC’s ability to mitigate the impacts arising from COVID-19 and (c) those disclosed in PAC's filings with the Securities and Exchange Commission. PAC undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

Additional Information

The SEC has declared effective the registration statement (including prospectus) filed by the Company for each of the offerings to which this communication may relate. Before you invest, you should read the final prospectus, and any prospectus supplements, forming a part of the registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the offering to which this communication may relate. In particular, you should carefully read the risk factors described in the final prospectus and in any related prospectus supplement and in the documents incorporated by reference in the final prospectus and any related prospectus supplement to which this communication may relate. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the Company or its dealer manager, Preferred Capital Securities, LLC, with respect to PAC's Series A1/M1 Redeemable Preferred Stock Offering, will arrange to send you a prospectus if you request it by calling John A. Isakson at (770) 818-4109, 3284 Northside Parkway NW, Suite 150, Atlanta, Georgia 30327.

The Series A1/M1 Redeemable Preferred Stock Offering prospectus, dated October 22, 2019, can be accessed through the following link:




https://www.sec.gov/Archives/edgar/data/1481832/000148183219000097/a424b5-2019seriesamshares.htm

SOURCE: Preferred Apartment Communities, Inc.

Preferred Apartment Communities, Inc.
John A. Isakson 770-818-4109
Chief Financial Officer
Email: jisakson@pacapts.com

july2020aptsbusinessupda
BUSINESS UPDATE JULY 14, 2020


 
FORWARD LOOKING STATEMENTS This business update (this “Update”) for Preferred Apartment Communities, Inc. (The “Company”, “PAC” or “APTS”) includes forward-looking statements made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking terminology such as “may”, “trend”, “will”, “expects”, “plans”, “estimates”, “anticipates”, “projects”, “intends”, “believes”, “strategy”, “goals”, “objectives”, “outlook” and similar expressions. Forward-looking statements include, without limitation, statements relating to the impact of COVID-19 on the Company’s business and the Company’s ability to mitigate the impacts arising from COVID-19. These statements are based on the Company’s current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, those disclosed in PAC’s filings with the Securities and Exchange Commission. PAC undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Update. The properties depicted in this Update are multihousing communities, grocery anchored retail, Class-A office, and other income-producing property types that PAC currently owns or for which PAC currently has a real estate loan investment in connection with the development of those properties. PRIOR PERFORMANCE IN THIS UPDATE SHOULD NOT BE INDICATIVE OF HOW PAC WILL PERFORM IN THE FUTURE. 2


 
COVID-19 COLLECTIONS UPDATE As the COVID-19 pandemic continues to unfold, the APTS team is working proactively to mitigate impacts to our customers, our investors, our associates, and our properties. The Company is well-positioned through its experienced leadership, sound real estate strategies, diversified business model, and operating platform to navigate these unprecedented times. As of July 10, the Company reports the following cash rental collections1 activity for April, May & June: MULTIHOUSING MULTIFAMILY STUDENT HOUSING April: 97% Collected April: 97% Collected May: 97% Collected May: 96% Collected June: 97% Collected June: 96% Collected RETAIL April: 92% Collected May: 87% Collected June: 82% Collected2 OFFICE April: 98% Collected May: 96% Collected June: 97% Collected2 1 Does not include negotiated deferred rent. 2 Including GSA leases paid in arrears. 3


 
APTS INSIGHT BY THE NUMBERS REVENUE GROCERY ANCHORED RETAIL 21% MULTIHOUSING Investment objective is to ASSET CLASS generate attractive, stable returns 44% PERCENTAGE BY for stockholders by investing in REVENUE income-producing properties and Q1 2020 acquiring or originating real estate OFFICE loans. 20% OTHER LOAN 3 % INVESTMENTS 11% $5.5B GROSS UNDEPRECIATED ASSETS 4


 
APTS INSIGHT DIVERSIFIED EQUITY CAPITAL BASE DEBT NYSE-Traded Common Stock Property Mortgages Non-Traded Preferred Stock Corporate Line of Credit EXPERIENCED TEAM DIVERSIFIED STRATEGY MULTI- GROCERY HOUSING ANCHORED OFFICE RETAIL USES STUDENT MULTIFAMILY HOUSING 5


 
APTS INSIGHT DIVERSIFIED 12,936 STRATEGY UNIFIED MULTI- OWNED UNITS BY SHARED SUNBELT HOUSING 2,718 MARKETS: UNITS IN REAL 78% of Q1 ESTATE LOAN 2020 Revenues Attributable to INVESTMENT PROGRAM WITH TOP 4 STATES ACQUISITION OPTION FL GROCERY ANCHORED 54 GROCERY ANCHORED RETAIL CENTERS GA 6.2M SQUARE FEET TX OFFICE 9 PROPERTIES 3.2M SQUARE FEET NC 6


 
INVESTOR RESOURCES Click icons below to access information electronically Annual Report 2019 Executive Team Bios Q2 2020 Earnings Call Investor Relations Website Aug 11, 2020 11:00 am Eastern Time Investor Relations phone #: (770) 635 1284 investorrelations@pacapts.com 3284 Northside Parkway, Suite 150 Atlanta GA 30327 PACAPTS.COM