x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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MARYLAND
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27-1712193
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Title of each class
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Trading symbol
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Name of each exchange on which registered
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Common Stock, par value $.01 per share
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APTS
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NYSE
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TABLE OF CONTENTS
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FINANCIAL INFORMATION
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Page No.
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PART I
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1.
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Business
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1A.
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Risk Factors
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1B.
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Unresolved Staff Comments
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2.
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Properties
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3.
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Legal Proceedings
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4.
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Mine Safety Disclosures
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PART II
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5.
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Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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6.
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Selected Financial Data
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7.
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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7A.
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Quantitative and Qualitative Disclosures about Market Risk
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8.
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Financial Statements and Supplementary Data
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9.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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9A.
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Controls and Procedures
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9B.
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Other Information
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PART III
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10.
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Directors, Executive Officers and Corporate Governance
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11.
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Executive Compensation
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12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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13.
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Certain Relationships and Related Transactions, and Director Independence
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14.
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Principal Accountant Fees and Services
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PART IV
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15.
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Exhibits and Financial Statement Schedules
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16.
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Form 10-K Summary
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Item 1.
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Business
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•
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Acquiring Class “A” multifamily assets in performing and stable markets throughout the United States; these properties, we believe, will generate sustainable and growing cash flow from operations sufficient to allow us to cover the dividends that we expect to declare and pay and which we believe will have the potential for capital appreciation. These multifamily assets will generally be located in metropolitan statistical areas, or MSAs, with at least one million people which we expect will generate job growth and where we believe new multifamily development of comparable properties is able to be absorbed at attractive rental rates.
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•
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Acquiring Class “A” multifamily assets that are intended to be financed with longer-term, assumable, fixed-rate debt typically provided by FHA/HUD programs.
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•
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Acquiring Class “A” multifamily assets that present an opportunity to implement a value-add program whereby the properties can be upgraded or improved physically to better take advantage of the market.
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•
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Acquiring grocery-anchored shopping centers, typically anchored by one of the market-dominant grocers in that particular market.
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Acquiring leading Class “A” office properties in high-growth markets across the U.S.
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Originating real estate loan investments secured by interests in multifamily communities, membership or partnership interests in multifamily communities, other multifamily related assets, grocery-anchored shopping centers and office properties.
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It is our policy to acquire any of our target assets primarily for income, and only secondarily for possible capital gain. As part of our business strategy, we may enter into forward purchase contracts or purchase options for to-be-built multifamily communities, office buildings and retail centers and we may make real estate related loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the construction of multifamily communities and other properties.
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•
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We also may invest in real estate related debt, including, but not limited to, newly or previously originated first mortgage loans on multifamily properties, office buildings and retail centers that meet our investment criteria, which are performing or non-performing, newly or previously originated real estate related loans on multifamily properties that meet our investment criteria (second or subsequent mortgages), which are performing or non-performing, and tranches of securitized loans (pools of collateralized mortgaged-backed securities) on multifamily properties that meet our investment criteria, which are performing or non-performing. In connection with our investments in real estate related debt, we may negotiate the inclusion of exclusive purchase options on the to-be-developed properties. These purchase options may include a fixed purchase price set at the time we enter into the loan, or a purchase price which is calculated as a certain discount from market capitalization rates at the date of exercise of such purchase option. Certain of the purchase options we hold may be settled by cash payments to us in the event we elect not to acquire the underlying property.
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•
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80% of the votes entitled to be cast by holders of the then outstanding shares of voting stock of the corporation; and
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two-thirds of the votes entitled to be cast by holders of voting stock of the corporation, other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected, or held by an affiliate or associate of the interested stockholder.
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•
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the election or removal of directors;
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the amendment of our charter, except that our board of directors may amend our charter without stockholder approval to:
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◦
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change our name;
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◦
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change the name or other designation or the par value of any class or series of stock and the aggregate par value of our stock;
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◦
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increase or decrease the aggregate number of shares of stock that we have the authority to issue;
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increase or decrease the number of shares of any class or series of stock that we have the authority to issue; and
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◦
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effect certain reverse stock splits;
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our liquidation and dissolution; and
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our being a party to a merger, consolidation, sale or other disposition of all or substantially all our assets or statutory share exchange.
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joint venturers may share certain approval rights over major decisions;
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a co-venturer, co-owner or partner may at any time have economic or business interests or goals which are or which become inconsistent with our business interests or goals, including inconsistent goals relating to the sale of properties held in the joint venture or the timing of termination or liquidation of the joint venture;
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a co-venturer, co-owner or partner in an investment might become insolvent or bankrupt;
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we may incur liabilities as a result of an action taken by our co-venturer, co-owner or partner;
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a co-venturer, co-owner or partner may be in a position to take action contrary to our instructions or requests or contrary to our policies or objectives, including our policy with respect to qualifying and maintaining our qualification as a REIT;
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disputes between us and our joint venturers may result in litigation or arbitration that would increase our expenses and prevent our officers and directors from focusing their time and effort on our business and result in subjecting the properties owned by the applicable joint venture to additional risk; or
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under certain joint venture arrangements, neither venture partner may have the power to control the venture, and an impasse could be reached which might have a negative influence on the joint venture.
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natural disasters, such as hurricanes, earthquakes, floods and sea rise;
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a pandemic or other health crisis, such as the recent outbreak of novel coronavirus (COVID-19);
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climate change;
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acts of war or terrorism, including the consequences of terrorist attacks;
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adverse changes in national and local economic and real estate conditions;
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an oversupply of (or a reduction in demand for) space in the areas where particular properties are located and the attractiveness of particular properties to prospective residents or tenants;
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changes in governmental laws and regulations, fiscal policies and zoning ordinances and the related costs of compliance therewith and the potential for liability under applicable laws;
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costs of complying with applicable environmental requirements and remediation and liabilities associated with environmental conditions affecting real properties; and
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the potential for uninsured or underinsured property losses.
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purchase additional properties;
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repay debt, if any;
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buy out the interests of any co-venturers or other partners in any joint venture in which we are a party;
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create working capital reserves; or
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make repairs, maintenance, tenant improvements or other capital improvements or expenditures to our remaining properties.
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liabilities for property damage and remediation of undisclosed environmental contamination;
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claims by residents or other persons dealing with the former owners of the properties;
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liabilities incurred in the ordinary course of business; and
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claims for indemnification by general partners, directors, officers and others indemnified by the former owners of the properties.
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Carrying value of real estate assets and real estate related loans, in millions:
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Percentage
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Florida
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$
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1,109.6
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25.7
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%
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Georgia
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904.0
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20.9
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%
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North Carolina
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854.4
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19.8
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%
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Texas
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495.5
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11.5
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%
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Virginia
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229.4
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5.3
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%
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Tennessee
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160.4
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3.7
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%
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Alabama
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149.3
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3.3
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%
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California
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115.4
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2.7
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%
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South Carolina
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78.4
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1.8
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%
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Maryland
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65.0
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1.5
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%
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Arizona
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46.4
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1.1
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%
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Pennsylvania
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38.8
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0.9
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%
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Kansas
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38.3
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0.9
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%
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Kentucky
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33.0
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0.8
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%
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Mississippi
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4.6
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0.1
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%
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Total
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$
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4,322.5
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100.0
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%
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•
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if a property is mortgaged to secure payment of indebtedness, and if we are unable to meet our mortgage obligations, we could sustain a loss as a result of foreclosure on the mortgaged property;
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our vulnerability to general adverse economic and industry conditions is increased; and
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our flexibility in planning for, or reacting to, changes in business and industry conditions is limited.
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the general availability of loan proceeds/originators:
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higher loan spreads;
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tighter loan covenants;
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reduced loan to value ratios and resulting borrower proceeds; and
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higher amortization and reserve requirements.
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risks of delinquency and foreclosure, and risks of loss in the event thereof;
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the dependence upon the successful operation of, and net income from, real property;
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risks generally incident to interests in real property; and
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risks specific to the type and use of a particular property
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weakness in the national, regional and local economies, and declines in consumer confidence which could adversely impact consumer spending and retail sales and in turn tenant demand for space and could lead to increased store closings;
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changes in market rental rates;
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changes in demographics (including the number of households and average household income) surrounding our shopping centers;
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adverse financial conditions for grocery anchors and other retail, service, medical or restaurant tenants;
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continued consolidation in the retail and grocery sector;
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•
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excess amount of retail space in our markets;
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reduction in the demand by tenants to occupy our shopping centers as a result of reduced consumer demand for certain retail formats;
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•
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increased diversification of product offerings by grocery anchors can lead to increased competition, declining same store sales and store closings;
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increase in e-commerce and alternative distribution channels may negatively affect out tenant sales or decrease the square footage our tenants require and could lead to margin pressure on our grocery anchors, which could lead to store closures;
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the impact of an increase in energy costs on consumers and its consequential effect on the number of shopping visits to our centers;
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a pandemic or other health crisis, such as the recent outbreak of novel coronavirus (COVID-19); and
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consequences of any armed conflict involving, or terrorist attack against, the United States.
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become bankrupt or insolvent;
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experience a downturn in their business;
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materially default on their leases;
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do not renew their leases as they expire; or
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renew at lower rental rates.
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we would not be allowed to deduct our distributions to our stockholders when computing our taxable income;
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we would be subject to U.S. federal income tax on our taxable income at the corporate rate and possibly increased state and local taxes;
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we could be disqualified from being taxed as a REIT for the four taxable years following the year during which qualification was lost, unless entitled to relief under certain statutory provisions;
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we would have less cash to make distributions to our stockholders; and
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we might be required to borrow additional funds or sell some of our assets in order to pay corporate tax obligations we may incur as a result of our disqualification.
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your investment is consistent with your fiduciary obligations under ERISA and the Code;
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•
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your investment is made in accordance with the documents and instruments governing the Benefit Plan, including the Benefit Plan’s investment policy;
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•
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your investment satisfies the prudence and diversification requirements of Sections 404(a)(1)(B) and 404(a)(1)(C) of ERISA, if applicable, and other applicable provisions of ERISA and the Code;
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in making such investment decision, you have considered the effect the investment will have on the liquidity of the Benefit Plan and whether or not the investment will produce UBTI for the Benefit Plan;
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you will be able to value the assets of the Benefit Plan annually in accordance with any applicable ERISA or Code requirements and applicable provisions of the Benefit Plan; and
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•
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your investment will not constitute a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code.
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Item 1B.
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Unresolved Staff Comments
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Item 2.
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Properties
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Property
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Location
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Year constructed
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Number of Units
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Average Unit Size (sq. ft.)
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Average Rent per Unit (1, 3)
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Summit Crossing
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Atlanta, GA
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2007
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345
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1,034
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$
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1,222
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Summit Crossing II
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Atlanta, GA
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2013
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140
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1,100
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$
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1,318
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The Reserve at Summit Crossing
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Atlanta, GA
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2017
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172
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1,002
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$
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1,372
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Vineyards
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Houston, TX
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2003
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369
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1,122
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$
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1,190
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Aster at Lely Resort
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Naples, FL
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2015
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308
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1,071
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$
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1,454
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CityPark View Property:
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CityPark View
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Charlotte, NC
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2014
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284
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948
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$
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1,150
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CityPark View South
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Charlotte, NC
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2017
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200
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1,005
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$
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1,279
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Avenues at Cypress
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Houston, TX
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2014
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240
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1,170
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$
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1,484
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Venue at Lakewood Ranch
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Sarasota, FL
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2015
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237
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1,001
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$
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1,585
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Avenues at Creekside
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San Antonio, TX
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2014
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395
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974
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$
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1,184
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Citi Lakes
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Orlando, FL
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2014
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346
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984
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$
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1,498
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Avenues at Northpointe
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Houston, TX
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2013
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280
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1,167
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$
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1,427
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Lenox Village Property:
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Lenox Village
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Nashville, TN
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2009
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273
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906
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$
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1,314
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Regent at Lenox Village
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Nashville, TN
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2009
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18
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1,072
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$
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1,379
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Retreat at Lenox Village
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Nashville, TN
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2015
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183
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773
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$
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1,227
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Stone Creek
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Houston, TX
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2009
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246
|
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852
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$
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1,137
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Overton Rise
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Atlanta, GA
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2015
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294
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1,018
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$
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1,573
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Village at Baldwin Park
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Orlando, FL
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2008
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528
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1,069
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$
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1,691
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Crosstown Walk Property:
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Crosstown Walk
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Tampa, FL
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2014
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342
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|
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1,070
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$
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1,324
|
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Overlook at Crosstown Walk
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Tampa, FL
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2016
|
|
180
|
|
|
986
|
|
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$
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1,398
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|
525 Avalon Park
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Orlando, FL
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2008
|
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487
|
|
|
1,394
|
|
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$
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1,509
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Sorrel
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|
Jacksonville, FL
|
|
2015
|
|
290
|
|
|
1,048
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|
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$
|
1,332
|
|
Retreat at Greystone
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|
Birmingham, AL
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|
2015
|
|
312
|
|
|
1,100
|
|
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$
|
1,342
|
|
Citrus Village
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Tampa, FL
|
|
2011
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296
|
|
|
980
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|
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$
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1,326
|
|
Founders Village
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|
Williamsburg, VA
|
|
2014
|
|
247
|
|
|
1,070
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|
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$
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1,435
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|
Claiborne Crossing
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|
Louisville, KY
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|
2014
|
|
242
|
|
|
1,204
|
|
|
$
|
1,376
|
|
Luxe at Lakewood Ranch
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|
Sarasota, FL
|
|
2016
|
|
280
|
|
|
1,105
|
|
|
$
|
1,538
|
|
Adara Overland Park
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|
Kansas City, KS
|
|
2016
|
|
260
|
|
|
1,116
|
|
|
$
|
1,375
|
|
Aldridge at Town Village
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|
Atlanta, GA
|
|
2016
|
|
300
|
|
|
969
|
|
|
$
|
1,390
|
|
Colony at Centerpointe
|
|
Richmond, VA
|
|
2016
|
|
255
|
|
|
1,149
|
|
|
$
|
1,409
|
|
City Vista (2)
|
|
Pittsburgh, PA
|
|
2014
|
|
272
|
|
|
1,023
|
|
|
$
|
1,445
|
|
Lux at Sorrel
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|
Jacksonville, FL
|
|
2017
|
|
265
|
|
|
1,025
|
|
|
$
|
1,422
|
|
Green Park
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|
Atlanta, GA
|
|
2017
|
|
310
|
|
|
985
|
|
|
$
|
1,483
|
|
Lodge at Hidden River
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|
Tampa, FL
|
|
2017
|
|
300
|
|
|
980
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|
|
$
|
1,404
|
|
Vestavia Reserve
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|
Birmingham, AL
|
|
2016
|
|
272
|
|
|
1,113
|
|
|
$
|
1,556
|
|
Artisan at Viera
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|
Melbourne, FL
|
|
2018
|
|
259
|
|
|
1,070
|
|
|
—
|
|
|
Five Oaks at Westchase
|
|
Tampa, FL
|
|
2019
|
|
218
|
|
|
983
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
10,245
|
|
|
|
|
|
|||
|
||||||||||||||
(1) Data is only presented for stabilized properties owned by us for at least three months.
|
|
|
||||||||||||
(2) We own approximately 96% of the joint venture that controls the City Vista multifamily community.
|
|
|
||||||||||||
(3) Values are based on leasing activity from the quarter-ended December 31, 2019.
|
|
|
Property
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|
Location
|
|
University
|
|
Year constructed/renovated
|
|
Number of Units
|
|
Number of beds
|
|
Average Unit Size (sq. ft.)
|
|
Average Rent per Bed (1, 3)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
North by Northwest (4)
|
|
Tallahassee, FL
|
|
Florida State University
|
|
2012
|
|
219
|
|
|
679
|
|
|
1,250
|
|
|
$
|
702
|
|
SoL (4)
|
|
Tempe, AZ
|
|
Arizona State University
|
|
2010
|
|
224
|
|
|
639
|
|
|
1,296
|
|
|
$
|
720
|
|
Stadium Village (2, 4)
|
|
Atlanta, GA
|
|
Kennesaw State University
|
|
2015
|
|
198
|
|
|
792
|
|
|
1,466
|
|
|
$
|
721
|
|
Ursa (2, 4)
|
|
Waco, TX
|
|
Baylor University
|
|
2017
|
|
250
|
|
|
840
|
|
|
1,634
|
|
|
$
|
604
|
|
The Tradition
|
|
College Station, TX
|
|
Texas A&M University
|
|
2017
|
|
427
|
|
|
808
|
|
|
549
|
|
|
$
|
605
|
|
The Retreat at Orlando (4)
|
|
Orlando, FL
|
|
University of Central Florida
|
|
2014
|
|
221
|
|
|
894
|
|
|
2,036
|
|
|
$
|
769
|
|
Haven 49 (4)
|
|
Charlotte, NC
|
|
University of North Carolina Charlotte
|
|
2019
|
|
332
|
|
|
887
|
|
|
1,224
|
|
|
$
|
515
|
|
The Bloc
|
|
Lubbock, TX
|
|
Texas Tech University
|
|
2017
|
|
140
|
|
|
556
|
|
|
1,394
|
|
|
$
|
751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
2,011
|
|
|
6,095
|
|
|
|
|
|
|||
|
|||||||||||||||||||
(1) Data only presented for stabilized student housing communities.
|
|
|
|||||||||||||||||
(2) We own approximately 99% of the joint venture that controls the Stadium Village and Ursa student housing properties.
|
|
|
|||||||||||||||||
(3) Values are based on leasing activity from the quarter-ended December 31, 2019.
|
|
|
|||||||||||||||||
(4) Six of our student housing properties were under contract for sale at December 31, 2019.
|
|
|
Property name
|
Location
|
|
Year built
|
|
GLA (1)
|
|
Percent leased
|
|
Grocery anchor tenant
|
||
|
|
|
|
|
|
|
|
|
|
||
Castleberry-Southard
|
Atlanta, GA
|
|
2006
|
|
80,018
|
|
|
98.3
|
%
|
|
Publix
|
Cherokee Plaza
|
Atlanta, GA
|
|
1958
|
|
102,864
|
|
|
100.0
|
%
|
|
Kroger
|
Governors Towne Square
|
Atlanta, GA
|
|
2004
|
|
68,658
|
|
|
95.9
|
%
|
|
Publix
|
Lakeland Plaza
|
Atlanta, GA
|
|
1990
|
|
301,711
|
|
|
95.4
|
%
|
|
Sprouts
|
Powder Springs
|
Atlanta, GA
|
|
1999
|
|
77,853
|
|
|
87.7
|
%
|
|
Publix
|
Rockbridge Village
|
Atlanta, GA
|
|
2005
|
|
102,432
|
|
|
90.6
|
%
|
|
Kroger
|
Roswell Wieuca Shopping Center
|
Atlanta, GA
|
|
2007
|
|
74,370
|
|
|
100.0
|
%
|
|
The Fresh Market
|
Royal Lakes Marketplace
|
Atlanta, GA
|
|
2008
|
|
119,493
|
|
|
95.0
|
%
|
|
Kroger
|
Sandy Plains Exchange
|
Atlanta, GA
|
|
1997
|
|
72,784
|
|
|
98.4
|
%
|
|
Publix
|
Summit Point
|
Atlanta, GA
|
|
2004
|
|
111,970
|
|
|
88.7
|
%
|
|
Publix
|
Thompson Bridge Commons
|
Atlanta, GA
|
|
2001
|
|
92,587
|
|
|
96.4
|
%
|
|
Kroger
|
Wade Green Village
|
Atlanta, GA
|
|
1993
|
|
74,978
|
|
|
88.7
|
%
|
|
Publix
|
Woodmont Village
|
Atlanta, GA
|
|
2002
|
|
85,639
|
|
|
98.6
|
%
|
|
Kroger
|
Woodstock Crossing
|
Atlanta, GA
|
|
1994
|
|
66,122
|
|
|
100.0
|
%
|
|
Kroger
|
East Gate Shopping Center
|
Augusta, GA
|
|
1995
|
|
75,716
|
|
|
92.2
|
%
|
|
Publix
|
Fury's Ferry
|
Augusta, GA
|
|
1996
|
|
70,458
|
|
|
98.0
|
%
|
|
Publix
|
Parkway Centre
|
Columbus, GA
|
|
1999
|
|
53,088
|
|
|
97.7
|
%
|
|
Publix
|
Greensboro Village
|
Nashville, TN
|
|
2005
|
|
70,203
|
|
|
91.9
|
%
|
|
Publix
|
Spring Hill Plaza
|
Nashville, TN
|
|
2005
|
|
61,570
|
|
|
100.0
|
%
|
|
Publix
|
Parkway Town Centre
|
Nashville, TN
|
|
2005
|
|
65,587
|
|
|
100.0
|
%
|
|
Publix
|
The Market at Salem Cove
|
Nashville, TN
|
|
2010
|
|
62,356
|
|
|
100.0
|
%
|
|
Publix
|
The Market at Victory Village
|
Nashville, TN
|
|
2007
|
|
71,300
|
|
|
100.0
|
%
|
|
Publix
|
The Overlook at Hamilton Place
|
Chattanooga, TN
|
|
1992
|
|
213,095
|
|
|
100.0
|
%
|
|
The Fresh Market
|
Shoppes of Parkland
|
Miami-Ft. Lauderdale, FL
|
|
2000
|
|
145,720
|
|
|
100.0
|
%
|
|
BJ's Wholesale Club
|
Polo Grounds Mall
|
West Palm Beach, FL
|
|
1966
|
|
130,285
|
|
|
98.9
|
%
|
|
Publix
|
Crossroads Market
|
Naples, FL
|
|
1993
|
|
126,895
|
|
|
100.0
|
%
|
|
Publix
|
Neapolitan Way
|
Naples, FL
|
|
1985
|
|
137,580
|
|
|
91.8
|
%
|
|
Publix
|
Berry Town Center
|
Orlando, FL
|
|
2003
|
|
99,441
|
|
|
85.6
|
%
|
|
Publix
|
Conway Plaza
|
Orlando, FL
|
|
1966
|
|
117,705
|
|
|
83.4
|
%
|
|
Publix
|
Deltona Landings
|
Orlando, FL
|
|
1999
|
|
59,966
|
|
|
100.0
|
%
|
|
Publix
|
University Palms
|
Orlando, FL
|
|
1993
|
|
99,172
|
|
|
100.0
|
%
|
|
Publix
|
Disston Plaza
|
Tampa-St. Petersburg, FL
|
|
1954
|
|
129,150
|
|
|
96.6
|
%
|
|
Publix
|
Barclay Crossing
|
Tampa, FL
|
|
1998
|
|
54,958
|
|
|
100.0
|
%
|
|
Publix
|
Champions Village
|
Houston, TX
|
|
1973
|
|
383,346
|
|
|
78.0
|
%
|
|
Randalls
|
Kingwood Glen
|
Houston, TX
|
|
1998
|
|
103,397
|
|
|
97.1
|
%
|
|
Kroger
|
Independence Square
|
Dallas, TX
|
|
1977
|
|
140,218
|
|
|
87.2
|
%
|
|
Tom Thumb
|
Oak Park Village
|
San Antonio, TX
|
|
1970
|
|
64,855
|
|
|
100.0
|
%
|
|
H.E.B.
|
Sweetgrass Corner
|
Charleston, SC
|
|
1999
|
|
89,124
|
|
|
29.1
|
%
|
|
(2)
|
Irmo Station
|
Columbia, SC
|
|
1980
|
|
99,384
|
|
|
96.4
|
%
|
|
Kroger
|
Rosewood Shopping Center
|
Columbia, SC
|
|
2002
|
|
36,887
|
|
|
93.5
|
%
|
|
Publix
|
Anderson Central
|
Greenville Spartanburg, SC
|
|
1999
|
|
223,211
|
|
|
96.8
|
%
|
|
Walmart
|
Fairview Market
|
Greenville Spartanburg, SC
|
|
1998
|
|
46,303
|
|
|
93.1
|
%
|
|
Aldi
|
Brawley Commons
|
Charlotte, NC
|
|
1997
|
|
122,028
|
|
|
100.0
|
%
|
|
Publix
|
West Town Market
|
Charlotte, NC
|
|
2004
|
|
67,883
|
|
|
100.0
|
%
|
|
Harris Teeter
|
Heritage Station
|
Raleigh, NC
|
|
2004
|
|
72,946
|
|
|
100.0
|
%
|
|
Harris Teeter
|
Maynard Crossing
|
Raleigh, NC
|
|
1996
|
|
122,781
|
|
|
94.6
|
%
|
|
Harris Teeter
|
Hanover Center (4)
|
Wilmington, NC
|
|
1954
|
|
305,346
|
|
|
100.0
|
%
|
|
Harris Teeter
|
Southgate Village
|
Birmingham, AL
|
|
1988
|
|
75,092
|
|
|
96.8
|
%
|
|
Publix
|
Hollymead Town Center
|
Charlottesville, VA
|
|
2005
|
|
158,807
|
|
|
90.8
|
%
|
|
Harris Teeter
|
Gayton Crossing
|
Richmond, VA
|
|
1983
|
|
158,316
|
|
(3)
|
84.4
|
%
|
|
Kroger
|
Fairfield Shopping Center (4)
|
Virginia Beach, VA
|
|
1985
|
|
231,829
|
|
|
85.3
|
%
|
|
Food Lion
|
Free State Shopping Center
|
Washington, DC
|
|
1970
|
|
264,152
|
|
|
97.7
|
%
|
|
Giant
|
|
|
|
|
|
|
|
|
|
|
||
Grand total/weighted average
|
|
|
|
|
6,041,629
|
|
|
93.2
|
%
|
|
|
Grocery Anchor Tenant
|
|
GLA
|
|
% of GLA within retail portfolio
|
||
Publix
|
|
1,175,430
|
|
|
19.5
|
%
|
Kroger
|
|
518,194
|
|
|
8.6
|
%
|
Harris Teeter
|
|
273,273
|
|
|
4.5
|
%
|
Wal-Mart
|
|
183,211
|
|
|
3.0
|
%
|
BJ's Wholesale Club
|
|
108,532
|
|
|
1.8
|
%
|
Giant
|
|
73,149
|
|
|
1.2
|
%
|
Randall's
|
|
61,604
|
|
|
1.0
|
%
|
H.E.B
|
|
54,844
|
|
|
0.9
|
%
|
Tom Thumb
|
|
43,600
|
|
|
0.7
|
%
|
The Fresh Market
|
|
43,321
|
|
|
0.7
|
%
|
Food Lion
|
|
38,538
|
|
|
0.6
|
%
|
Sprouts
|
|
29,855
|
|
|
0.5
|
%
|
Aldi
|
|
23,622
|
|
|
0.4
|
%
|
|
|
|
|
|
||
Total
|
|
2,627,173
|
|
|
43.4
|
%
|
|
|
Totals
|
|||||||
|
|
Number of leases
|
|
Leased GLA
|
|
Percent of leased GLA
|
|||
|
|
|
|
|
|
|
|||
Month to month
|
|
9
|
|
|
37,826
|
|
|
0.7
|
%
|
2020
|
|
125
|
|
|
385,241
|
|
|
6.9
|
%
|
2021
|
|
173
|
|
|
685,469
|
|
|
12.2
|
%
|
2022
|
|
173
|
|
|
601,057
|
|
|
10.7
|
%
|
2023
|
|
132
|
|
|
616,227
|
|
|
11.0
|
%
|
2024
|
|
124
|
|
|
1,157,454
|
|
|
20.6
|
%
|
2025
|
|
70
|
|
|
777,600
|
|
|
13.9
|
%
|
2026
|
|
17
|
|
|
172,282
|
|
|
3.1
|
%
|
2027
|
|
26
|
|
|
189,485
|
|
|
3.4
|
%
|
2028
|
|
27
|
|
|
352,816
|
|
|
6.3
|
%
|
2029
|
|
26
|
|
|
183,451
|
|
|
3.3
|
%
|
2030 +
|
|
18
|
|
|
456,824
|
|
|
7.9
|
%
|
|
|
|
|
|
|
|
|||
Total
|
|
920
|
|
|
5,615,732
|
|
|
100.0
|
%
|
Property Name
|
|
Location
|
|
GLA
|
|
Percent leased
|
||
Three Ravinia
|
|
Atlanta, GA
|
|
814,000
|
|
|
98
|
%
|
150 Fayetteville
|
|
Raleigh, NC
|
|
560,000
|
|
|
91
|
%
|
Capitol Towers
|
|
Charlotte, NC
|
|
479,000
|
|
|
99
|
%
|
Westridge at La Cantera
|
|
San Antonio, TX
|
|
258,000
|
|
|
100
|
%
|
CAPTRUST Tower
|
(1)
|
Raleigh, NC
|
|
300,000
|
|
|
97
|
%
|
Morrocroft Centre
|
(1)
|
Charlotte, NC
|
|
291,000
|
|
|
89
|
%
|
Armour Yards
|
|
Atlanta, GA
|
|
187,000
|
|
(2)
|
96
|
%
|
Brookwood Center
|
|
Birmingham, AL
|
|
169,000
|
|
|
100
|
%
|
Galleria 75
|
|
Atlanta, GA
|
|
111,000
|
|
|
96
|
%
|
|
|
|
|
|
|
|
||
|
|
|
|
3,169,000
|
|
|
96
|
%
|
|
|
|
|
|
|
|
||
(1) Property is owned through a consolidated joint venture.
|
||||||||
(2) GLA for Armour Yards excludes 35,000 square feet for 251 Armour, which is under redevelopment.
|
|
|
|
Rentable square footage
|
|
Percent of Annual Base Rent
|
|
Annual Base Rent (in thousands)
|
||||
InterContinental Hotels Group
|
520,000
|
|
|
14.3
|
%
|
|
$
|
12,043
|
|
||
Albemarle
|
162,000
|
|
|
6.8
|
%
|
|
5,706
|
|
|||
CapFinancial
|
113,000
|
|
|
4.7
|
%
|
|
3,983
|
|
|||
United Services Automobile Association
|
129,000
|
|
|
3.7
|
%
|
|
3,118
|
|
|||
Harland Clarke Corporation
|
129,000
|
|
|
3.4
|
%
|
|
2,881
|
|
|||
|
|
|
|
|
|
|
|
||||
|
1,053,000
|
|
|
32.9
|
%
|
|
$
|
27,731
|
|
Item 3.
|
Legal Proceedings
|
Item 5.
|
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
|
|
|
|
Value of initial investment on:
|
|
|
|
||||||||||||||||||||
|
|
|
|
1/1/2015
|
|
12/31/2015
|
|
12/31/2016
|
|
|
12/31/2017
|
|
|
12/31/2018
|
|
|
12/31/2019
|
|
|
||||||||
APTS Common Stock
|
|
$
|
1,000
|
|
|
$
|
1,533
|
|
|
$
|
1,854
|
|
|
$
|
2,653
|
|
|
$
|
1,927
|
|
|
$
|
1,955
|
|
|
||
MSCI U. S. REIT Index
|
|
$
|
1,000
|
|
|
$
|
1,025
|
|
|
$
|
1,113
|
|
|
$
|
1,170
|
|
|
$
|
1,116
|
|
|
$
|
1,405
|
|
|
||
S&P 500
|
|
$
|
1,000
|
|
|
$
|
993
|
|
|
$
|
1,087
|
|
|
$
|
1,299
|
|
|
$
|
1,218
|
|
|
$
|
1,569
|
|
|
Item 6.
|
Selected Financial Data
|
•
|
actions and initiatives of the U.S. Government and changes to U.S. Government policies and the execution and impact of these actions, initiatives and policies;
|
•
|
our ability to obtain and maintain financing arrangements, including through Fannie Mae and Freddie Mac;
|
•
|
weakness in the national, regional and local economies, which could adversely impact consumer spending and retail sales and in turn tenant demand for space and could lead to increased store closings;
|
•
|
changes in market rental rates;
|
•
|
changes in demographics (including the number of households and average household income) surrounding our shopping centers;
|
•
|
adverse financial conditions for grocery anchors and other retail, service, medical or restaurant tenants;
|
•
|
continued consolidation in the grocery-anchored shopping center sector;
|
•
|
excess amount of retail space in our markets;
|
•
|
reduction in the demand by tenants to occupy our shopping centers as a result of reduced consumer demand for certain retail formats;
|
•
|
the growth of super-centers and warehouse club retailers, such as those operated by Wal-Mart and Costco, and their adverse effect on traditional grocery chains;
|
•
|
the entry of new market participants into the food sales business, such as Amazon's acquisition of Whole Foods, the growth of online food delivery services and online supermarket retailers and their collective adverse effect on traditional grocery chains;
|
•
|
our ability to aggregate a critical mass of grocery-anchored shopping centers;
|
•
|
the impact of an increase in energy costs on consumers and its consequential effect on the number of shopping visits to our centers; and
|
•
|
consequences of any armed conflict involving, or terrorist attack against, the United States.
|
•
|
For the fourth quarter 2019, our FFO payout ratio to Common Stockholders and Unitholders was approximately 84.4% and our FFO payout ratio (before the deduction of preferred dividends) to our preferred stockholders was approximately 68.0%. Excluding costs related to the Internalization of our Manager, these respective ratios were 75.0% and 65.4%.(A)
|
•
|
Our AFFO payout ratio to Common Stockholders and Unitholders was approximately 74.9% for the fourth quarter 2019 and 103.7% for the year ended December 31, 2019. Our AFFO payout ratio (before the deduction of preferred dividends) to our preferred stockholders was approximately 65.4% for the fourth quarter 2019 and 71.2% for the year ended December 31, 2019. (B) We have approximately $25.8 million of accrued but not yet paid interest revenues on our real estate loan investment portfolio.
|
•
|
At December 31, 2019, the market value of our common stock was $13.32 per share. A hypothetical investment in our Common Stock in our initial public offering on April 5, 2011, assuming the reinvestment of all dividends and no transaction costs, would have resulted in an average annual return of approximately 15.2% through December 31, 2019.
|
•
|
As of December 31, 2019, the average age of our multifamily communities was approximately 5.7 years, which is the youngest in the public multifamily REIT industry.
|
•
|
As of December 31, 2019, approximately 93.2% of our permanent property-level mortgage debt has fixed interest rates and approximately 3.8% has variable interest rates which are capped. We believe we are well protected against potential increases in market interest rates.
|
•
|
On December 10 and December 17, 2019, we sold our investments in the ML-04 and ML-05 tranches of the Freddie Mac K Program, respectively, for a combined $26.6 million, realizing a combined gain of approximately $1.6 million.
|
•
|
As of December 31, 2019, our total assets were approximately $4.8 billion compared to approximately $4.4 billion as of December 31, 2018, an increase of approximately $360 million, or approximately 8.2%. This growth reflected the acquisition of 13 real estate properties during 2019, partially offset by the sale of our Freddie Mac K program investments in December 2019 and the resulting deconsolidation of the associated VIE mortgage pool assets. Excluding the VIE mortgage pool assets from other participants in the K Program, our total assets grew approximately $624.5 million, or 15.1% since December 31, 2018.
|
•
|
On October 17, 2019, we obtained a new fixed-rate mortgage on our Five Oaks at Westchase multifamily community of approximately $31.5 million, which matures on November 1, 2031 and bears interest of 3.27% per annum.
|
•
|
At December 31, 2019, our leverage, as measured by the ratio of our debt to the undepreciated book value of our total assets, was approximately 51.6%.
|
•
|
On May 24, 2019, we entered into a purchase and sale agreement to sell six of our student housing properties to a third party. On June 28, 2019, this agreement was terminated and we recorded revenue from a forfeited earnest money deposit of $1.0 million. A new purchase and sale agreement was entered into for the same six student housing properties plus a real estate loan investment supporting yet another student housing property on July 29, 2019. On December 9, 2019, the agreement was amended to change the closing date to March 20, 2020 and resulted in another $1.0 million deposit forfeiture by the prospective purchaser.
|
•
|
On October 11, 2019, we closed on a real estate loan investment of up to $10.9 million in connection with the development of Vintage Horizon West, a 340-unit multifamily community to be located in Orlando, Florida.
|
Preferred Apartment Communities, Inc.
|
|
Years ended December 31,
|
|
Change inc (dec)
|
|||||||||||
|
|
2019
|
|
2018
|
|
Amount
|
|
Percentage
|
|||||||
Revenues:
|
|
|
|
|
|
|
|
|
|||||||
Rental revenues
|
|
$
|
395,121
|
|
|
$
|
323,252
|
|
|
$
|
71,869
|
|
|
22.2
|
%
|
Other property revenues
|
|
11,795
|
|
|
8,213
|
|
|
3,582
|
|
|
43.6
|
%
|
|||
Interest income on loans and notes receivable
|
|
49,542
|
|
|
50,190
|
|
|
(648
|
)
|
|
(1.3
|
)%
|
|||
Interest income from related parties
|
|
11,946
|
|
|
15,616
|
|
|
(3,670
|
)
|
|
(23.5
|
)%
|
|||
Miscellaneous revenues
|
|
2,023
|
|
|
—
|
|
|
2,023
|
|
|
—
|
|
|||
Total revenues
|
|
470,427
|
|
|
397,271
|
|
|
73,156
|
|
|
18.4
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|||||||
Property operating and maintenance
|
|
52,911
|
|
|
44,065
|
|
|
8,846
|
|
|
20.1
|
%
|
|||
Property salary and benefits
|
|
20,693
|
|
|
17,766
|
|
|
2,927
|
|
|
16.5
|
%
|
|||
Property management fees
|
|
13,981
|
|
|
11,681
|
|
|
2,300
|
|
|
19.7
|
%
|
|||
Real estate taxes
|
|
50,298
|
|
|
42,035
|
|
|
8,263
|
|
|
19.7
|
%
|
|||
General and administrative
|
|
8,541
|
|
|
8,224
|
|
|
317
|
|
|
3.9
|
%
|
|||
Equity compensation to directors and executives
|
|
1,223
|
|
|
1,703
|
|
|
(480
|
)
|
|
(28.2
|
)%
|
|||
Depreciation and amortization
|
|
185,065
|
|
|
171,136
|
|
|
13,929
|
|
|
8.1
|
%
|
|||
Asset management and general and administrative
|
|
|
|
|
|
|
|
|
|||||||
expense fees to related parties
|
|
33,516
|
|
|
27,541
|
|
|
5,975
|
|
|
21.7
|
%
|
|||
Loan loss allowance
|
|
2,038
|
|
|
2,533
|
|
|
(495
|
)
|
|
(19.5
|
)%
|
|||
Insurance, professional fees and other expenses
|
|
13,687
|
|
|
7,166
|
|
|
6,521
|
|
|
91.0
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Total operating expenses
|
|
381,953
|
|
|
333,850
|
|
|
48,103
|
|
|
14.4
|
%
|
|||
Waived asset management and general and administrative
|
|
|
|
|
|
|
|
|
|||||||
expense fees
|
|
(11,764
|
)
|
|
(6,656
|
)
|
|
(5,108
|
)
|
|
76.7
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Net operating expenses
|
|
370,189
|
|
|
327,194
|
|
|
42,995
|
|
|
13.1
|
%
|
|||
Operating income before gains on sales of
|
|
|
|
|
|
|
|
|
|||||||
real estate and trading investments
|
|
100,238
|
|
|
70,077
|
|
|
30,161
|
|
|
43.0
|
%
|
|||
Gain on sale of real estate and trading investment
|
|
1,567
|
|
|
69,705
|
|
|
(68,138
|
)
|
|
(97.8
|
)%
|
|||
Operating income
|
|
101,805
|
|
|
139,782
|
|
|
(37,977
|
)
|
|
(27.2
|
)%
|
|||
Interest expense
|
|
111,964
|
|
|
95,564
|
|
|
16,400
|
|
|
17.2
|
%
|
|||
Change in fair value of net assets of consolidated
|
|
|
|
|
|
|
|
|
|||||||
VIE from mortgage-backed pool
|
|
1,831
|
|
|
320
|
|
|
1,511
|
|
|
472.2
|
%
|
|||
(Loss) on debt extinguishment
|
|
(84
|
)
|
|
—
|
|
|
(84
|
)
|
|
—
|
|
|||
Gains on sale of real estate loan investment and land condemnation
|
|
954
|
|
|
—
|
|
|
954
|
|
|
—
|
|
|||
Net (loss) income
|
|
(7,458
|
)
|
|
44,538
|
|
|
(51,996
|
)
|
|
—
|
|
|||
Consolidated net loss (income) attributable to non-controlling interests
|
|
214
|
|
|
(1,071
|
)
|
|
1,285
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Net (loss) income attributable to the Company
|
|
$
|
(7,244
|
)
|
|
$
|
43,467
|
|
|
$
|
(50,711
|
)
|
|
—
|
|
New Market Properties, LLC
|
|
Years ended December 31,
|
|
Change inc (dec)
|
|||||||||||
|
|
2019
|
|
2018
|
|
Amount
|
|
Percentage
|
|||||||
Revenues:
|
|
|
|
|
|
|
|
|
|||||||
Rental revenues
|
|
$
|
94,064
|
|
|
$
|
74,519
|
|
|
$
|
19,545
|
|
|
26.2
|
%
|
Other property revenues
|
|
564
|
|
|
713
|
|
|
(149
|
)
|
|
(20.9
|
)%
|
|||
Interest income on notes receivable
|
|
1,761
|
|
|
2,011
|
|
|
(250
|
)
|
|
(12.4
|
)%
|
|||
Total revenues
|
|
96,389
|
|
|
77,243
|
|
|
19,146
|
|
|
24.8
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|||||||
Property operating and maintenance
|
|
10,113
|
|
|
8,571
|
|
|
1,542
|
|
|
18.0
|
%
|
|||
Property management fees
|
|
3,318
|
|
|
2,741
|
|
|
577
|
|
|
21.1
|
%
|
|||
Real estate taxes
|
|
11,602
|
|
|
9,296
|
|
|
2,306
|
|
|
24.8
|
%
|
|||
General and administrative
|
|
1,081
|
|
|
924
|
|
|
157
|
|
|
17.0
|
%
|
|||
Equity compensation to directors and executives
|
|
70
|
|
|
149
|
|
|
(79
|
)
|
|
(53.0
|
)%
|
|||
Depreciation and amortization
|
|
44,786
|
|
|
39,269
|
|
|
5,517
|
|
|
14.0
|
%
|
|||
Asset management and general and administrative
|
|
|
|
|
|
|
|
|
|||||||
expense fees to related parties
|
|
7,242
|
|
|
5,743
|
|
|
1,499
|
|
|
26.1
|
%
|
|||
Insurance, professional fees and other expenses
|
|
1,772
|
|
|
1,126
|
|
|
646
|
|
|
57.4
|
%
|
|||
Total operating expenses
|
|
79,984
|
|
|
67,819
|
|
|
12,165
|
|
|
17.9
|
%
|
|||
Waived asset management and general and administrative
|
|
|
|
|
|
|
|
|
|||||||
expense fees
|
|
(382
|
)
|
|
(375
|
)
|
|
(7
|
)
|
|
—
|
|
|||
Net operating expenses
|
|
79,602
|
|
|
67,444
|
|
|
12,158
|
|
|
18.0
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Operating income
|
|
16,787
|
|
|
9,799
|
|
|
6,988
|
|
|
71.3
|
%
|
|||
Interest expense
|
|
24,566
|
|
|
19,188
|
|
|
5,378
|
|
|
28.0
|
%
|
|||
Loss on extinguishment of debt
|
|
68
|
|
|
—
|
|
|
68
|
|
|
—
|
|
|||
Net income (loss)
|
|
(7,847
|
)
|
|
(9,389
|
)
|
|
1,542
|
|
|
(16.4
|
)%
|
|||
Consolidated net (income) loss attributable to non-controlling
|
|
|
|
|
|
|
|
|
|||||||
interests
|
|
(55
|
)
|
|
—
|
|
|
(55
|
)
|
|
—
|
|
|||
Net income (loss) attributable to the Company
|
|
$
|
(7,792
|
)
|
|
$
|
(9,389
|
)
|
|
$
|
1,597
|
|
|
(17.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Acquisition date
|
|
Property
|
|
Location
|
|
Units
|
|
Beds
|
|
Leasable square feet
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
Multifamily communities:
|
|
|
|
|
|
|
|
|
|
|||
|
1/9/2018
|
|
The Lux at Sorrel
|
|
Jacksonville, FL
|
|
265
|
|
|
-
|
|
|
-
|
|
|
|
2/28/2018
|
|
Green Park
|
|
Atlanta, GA
|
|
310
|
|
|
-
|
|
|
-
|
|
|
|
9/27/2018
|
|
The Lodge at Hidden River
|
|
Tampa, FL
|
|
300
|
|
|
-
|
|
|
-
|
|
|
|
11/9/2018
|
|
Vestavia Reserve
|
|
Birmingham, AL
|
|
272
|
|
|
-
|
|
|
-
|
|
|
|
11/15/2018
|
|
CityPark View South (1)
|
|
Charlotte, NC
|
|
200
|
|
|
-
|
|
|
-
|
|
|
|
8/8/2019
|
|
Artisan at Viera
|
|
Melbourne, FL
|
|
259
|
|
|
-
|
|
|
-
|
|
|
|
9/18/2019
|
|
Five Oaks at Westchase
|
|
Tampa, FL
|
|
218
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
New Market Properties:
|
|
|
|
|
|
|||||||
|
4/27/2018
|
|
Greensboro Village
|
|
Nashville, TN
|
|
-
|
|
|
-
|
|
|
70,203
|
|
|
|
4/27/2018
|
|
Governors Towne Square
|
|
Atlanta, GA
|
|
-
|
|
|
-
|
|
|
68,658
|
|
|
|
6/26/2018
|
|
Neapolitan Way
|
|
Naples, FL
|
|
-
|
|
|
-
|
|
|
137,580
|
|
|
|
6/29/2018
|
|
Conway Plaza
|
|
Orlando, FL
|
|
-
|
|
|
-
|
|
|
117,705
|
|
|
|
7/6/2018
|
|
Brawley Commons
|
|
Charlotte, NC
|
|
-
|
|
|
-
|
|
|
122,028
|
|
|
|
12/21/2018
|
|
Hollymead Town Center
|
|
Charlottesville, VA
|
|
-
|
|
|
-
|
|
|
158,807
|
|
|
|
1/17/2019
|
|
Gayton Crossing
|
|
Richmond, VA
|
|
-
|
|
|
-
|
|
|
158,316
|
|
|
|
5/28/2019
|
|
Free State Shopping Center
|
|
Washington, D.C.
|
|
-
|
|
|
-
|
|
|
264,152
|
|
|
|
6/12/2019
|
|
Disston Plaza
|
|
Tampa - St. Petersburg, FL
|
|
-
|
|
|
-
|
|
|
129,150
|
|
|
|
6/12/2019
|
|
Polo Grounds Mall
|
|
West Palm Beach, FL
|
|
-
|
|
|
-
|
|
|
130,285
|
|
|
|
8/16/2019
|
|
Fairfield Shopping Center (2)
|
|
Virginia Beach, VA
|
|
-
|
|
|
-
|
|
|
231,829
|
|
|
|
11/14/2019
|
|
Berry Town Center
|
|
Orlando, FL
|
|
-
|
|
|
-
|
|
|
99,441
|
|
|
|
12/19/2019
|
|
Hanover Shopping Center (2)
|
|
Wilmington, NC
|
|
-
|
|
|
-
|
|
|
305,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
Student housing properties:
|
|
|
|
|
|
|
|
|
|
|||
|
5/10/2018
|
|
The Tradition
|
|
College Station, TX
|
|
427
|
|
|
808
|
|
|
-
|
|
|
|
5/31/2018
|
|
The Retreat at Orlando
|
|
Orlando, FL
|
|
221
|
|
|
894
|
|
|
-
|
|
|
|
6/27/2018
|
|
The Bloc
|
|
Lubbock, TX
|
|
140
|
|
|
556
|
|
|
-
|
|
|
|
3/27/2019
|
|
Haven49
|
|
Charlotte, NC
|
|
322
|
|
|
887
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
Preferred Office Properties:
|
|
|
|
|
|
|
|
|
|
|||
|
1/29/2018
|
|
Armour Yards
|
|
Atlanta, GA
|
|
-
|
|
|
-
|
|
|
187,000
|
|
|
|
7/31/2018
|
|
150 Fayetteville
|
|
Raleigh, NC
|
|
-
|
|
|
-
|
|
|
560,000
|
|
|
|
12/20/2018
|
|
Capitol Towers
|
|
Charlotte, NC
|
|
-
|
|
|
-
|
|
|
479,000
|
|
|
|
7/25/2019
|
|
CAPTRUST Tower (2)
|
|
Raleigh, NC
|
|
-
|
|
|
-
|
|
|
300,000
|
|
|
|
7/31/2019
|
|
251 Armour
|
|
Atlanta, GA
|
|
-
|
|
|
-
|
|
|
35,000
|
|
|
|
12/20/2019
|
|
Morrocroft Centre (2)
|
|
Charlotte, NC
|
|
-
|
|
|
-
|
|
|
291,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
2,934
|
|
|
3,145
|
|
|
3,845,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposition date
|
|
Property
|
|
Location
|
|
Units
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/20/2018
|
|
Lake Cameron
|
|
Raleigh, NC
|
|
328
|
|
|
|
9/28/2018
|
|
Stone Rise
|
|
Philadelphia, PA
|
|
216
|
|
|
|
10/23/2018
|
|
Stoneridge Farms at the Hunt Club
|
|
Nashville, TN
|
|
364
|
|
|
|
12/11/2018
|
|
McNeil Ranch
|
|
Austin, TX
|
|
192
|
|
|
|
|
|
|
|
|
Years ended December 31,
|
|||||||||
|
|
|
|
2019 versus 2018
|
|||||||||||
(dollar amounts in thousands)
|
|
Years ended December 31,
|
|
Increase (decrease)
|
|||||||||||
Rental revenues
|
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
Properties acquired since January 1, 2018
|
|
$
|
119,262
|
|
|
$
|
38,010
|
|
|
$
|
81,252
|
|
|
113.1
|
%
|
Properties sold since January 1, 2018
|
|
—
|
|
|
10,808
|
|
|
(10,808
|
)
|
|
(15.1
|
)%
|
|||
Properties acquired in 2011 - 2017
|
|
275,859
|
|
|
274,434
|
|
|
1,425
|
|
|
2.0
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
$
|
395,121
|
|
|
$
|
323,252
|
|
|
$
|
71,869
|
|
|
100.0
|
%
|
|
|
|
|
|
|
Years ended December 31,
|
|||||||||
|
|
|
|
2019 versus 2018
|
|||||||||||
(dollar amounts in thousands)
|
|
Years ended December 31,
|
|
Increase (decrease)
|
|||||||||||
Property operating and maintenance expense
|
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
Properties acquired since January 1, 2018
|
|
$
|
17,986
|
|
|
$
|
6,301
|
|
|
$
|
11,685
|
|
|
132.1
|
%
|
Properties sold since January 1, 2018
|
|
—
|
|
|
1,903
|
|
|
(1,903
|
)
|
|
(21.5
|
)%
|
|||
Properties acquired in 2011 - 2017
|
|
34,925
|
|
|
35,861
|
|
|
(936
|
)
|
|
(10.6
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
$
|
52,911
|
|
|
$
|
44,065
|
|
|
$
|
8,846
|
|
|
100.0
|
%
|
|
|
|
|
|
|
Years ended December 31,
|
|||||||||
|
|
|
|
2019 versus 2018
|
|||||||||||
(dollar amounts in thousands)
|
|
Years ended December 31,
|
|
Increase (decrease)
|
|||||||||||
Property salary and benefits
|
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
Properties acquired since January 1, 2018
|
|
$
|
5,542
|
|
|
$
|
2,027
|
|
|
$
|
3,515
|
|
|
120.1
|
%
|
Properties sold since January 1, 2018
|
|
—
|
|
|
1,069
|
|
|
(1,069
|
)
|
|
(36.5
|
)%
|
|||
Properties acquired in 2011 - 2017
|
|
15,151
|
|
|
14,670
|
|
|
481
|
|
|
16.4
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
$
|
20,693
|
|
|
$
|
17,766
|
|
|
$
|
2,927
|
|
|
100.0
|
%
|
|
|
|
|
|
|
Years ended December 31,
|
|||||||||
|
|
|
|
2019 versus 2018
|
|||||||||||
(dollar amounts in thousands)
|
|
Years ended December 31,
|
|
Increase (decrease)
|
|||||||||||
Property management fees
|
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
Properties acquired since January 1, 2018
|
|
$
|
3,796
|
|
|
$
|
1,245
|
|
|
$
|
2,551
|
|
|
110.9
|
%
|
Properties sold since January 1, 2018
|
|
—
|
|
|
458
|
|
|
(458
|
)
|
|
(19.9
|
)%
|
|||
Properties acquired in 2011 - 2017
|
|
10,185
|
|
|
9,978
|
|
|
207
|
|
|
9.0
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
$
|
13,981
|
|
|
$
|
11,681
|
|
|
$
|
2,300
|
|
|
100.0
|
%
|
|
|
|
|
|
|
Years ended December 31,
|
|||||||||
|
|
|
|
2019 versus 2018
|
|||||||||||
(dollar amounts in thousands)
|
|
Years ended December 31,
|
|
Increase (decrease)
|
|||||||||||
Real estate taxes
|
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
Properties acquired since January 1, 2018
|
|
$
|
13,077
|
|
|
$
|
4,438
|
|
|
$
|
8,639
|
|
|
104.6
|
%
|
Properties sold since January 1, 2018
|
|
—
|
|
|
1,364
|
|
|
(1,364
|
)
|
|
(16.6
|
)%
|
|||
Properties acquired in 2011 - 2017
|
|
37,221
|
|
|
36,233
|
|
|
988
|
|
|
12.0
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
$
|
50,298
|
|
|
$
|
42,035
|
|
|
$
|
8,263
|
|
|
100.0
|
%
|
|
|
|
|
|
|
Years ended December 31,
|
|||||||||
|
|
|
|
2019 versus 2018
|
|||||||||||
(dollar amounts in thousands)
|
|
Years ended December 31,
|
|
Increase (decrease)
|
|||||||||||
General and administrative expense
|
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
Taxes, licenses and fees
|
|
$
|
1,919
|
|
|
$
|
1,575
|
|
|
$
|
344
|
|
|
108.5
|
%
|
Properties acquired since January 1, 2018
|
|
1,881
|
|
|
939
|
|
|
942
|
|
|
297.2
|
%
|
|||
Properties sold since January 1, 2018
|
|
—
|
|
|
243
|
|
|
(243
|
)
|
|
(76.7
|
)%
|
|||
Properties acquired in 2011 - 2017
|
|
4,741
|
|
|
5,467
|
|
|
(726
|
)
|
|
(229.0
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
$
|
8,541
|
|
|
$
|
8,224
|
|
|
$
|
317
|
|
|
100.0
|
%
|
|
|
|
|
|
|
Years ended December 31,
|
|||||||||
|
|
|
|
2019 versus 2018
|
|||||||||||
|
|
Years ended December 31,
|
|
Increase (decrease)
|
|||||||||||
(dollar amounts in thousands)
|
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
Audit and tax fees
|
|
$
|
1,672
|
|
|
$
|
1,464
|
|
|
$
|
208
|
|
|
3.2
|
%
|
Insurance premiums and claims
|
|
7,020
|
|
|
4,851
|
|
|
2,169
|
|
|
33.3
|
%
|
|||
Board of directors fees
|
|
163
|
|
|
170
|
|
|
(7
|
)
|
|
(0.2
|
)%
|
|||
Legal fees
|
|
1,308
|
|
|
424
|
|
|
884
|
|
|
13.6
|
%
|
|||
Internalization costs
|
|
2,988
|
|
|
—
|
|
|
2,988
|
|
|
45.8
|
%
|
|||
Other professional fees
|
|
536
|
|
|
257
|
|
|
279
|
|
|
4.3
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
$
|
13,687
|
|
|
$
|
7,166
|
|
|
$
|
6,521
|
|
|
100.0
|
%
|
|
|
|
|
|
|
Years ended December 31,
|
|||||||||
|
|
|
|
2019 versus 2018
|
|||||||||||
(dollar amounts in thousands)
|
|
Years ended December 31,
|
|
Increase (decrease)
|
|||||||||||
Interest expense
|
|
2019
|
|
2018
|
|
Amount
|
|
Percent
|
|||||||
Properties acquired since January 1, 2018
|
|
$
|
36,813
|
|
|
$
|
12,189
|
|
|
$
|
24,624
|
|
|
150.1
|
%
|
Properties sold since January 1, 2018
|
|
—
|
|
|
1,856
|
|
|
(1,856
|
)
|
|
(11.3
|
)%
|
|||
Properties acquired in 2011 - 2017
|
|
73,077
|
|
|
74,810
|
|
|
(1,733
|
)
|
|
(10.5
|
)%
|
|||
KeyBank operating LOC and Term Notes
|
|
1,964
|
|
|
4,278
|
|
|
(2,314
|
)
|
|
(14.1
|
)%
|
|||
Loan participants
|
|
110
|
|
|
2,431
|
|
|
(2,321
|
)
|
|
(14.2
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
$
|
111,964
|
|
|
$
|
95,564
|
|
|
$
|
16,400
|
|
|
100.0
|
%
|
•
|
depreciation and amortization related to real estate;
|
•
|
gains and losses from the sale of certain real estate assets;
|
•
|
gains and losses from change in control and
|
•
|
impairment writedowns of certain real estate assets and investments in entities where the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.
|
1)
|
Rental and other property revenues and property operating expenses for the quarter and year ended December 31, 2019 include activity for the properties acquired during the periods only from their respective dates of acquisition. In addition, the fourth quarter and year ended 2019 includes activity for the properties acquired since December 31, 2018. Rental and other property revenues and expenses for the fourth quarter and year ended 2018 include activity for the acquisitions made during that period only from their respective dates of acquisition.
|
2)
|
Non-controlling interests in Preferred Apartment Communities Operating Partnership, L.P., or our Operating Partnership, consisted of a total of 856,409 Class A Units as of December 31, 2019. Included in this total are 419,228 Class A Units which were granted as partial consideration to the seller in conjunction with the seller's contribution to us on February 29, 2016 of the Wade Green grocery-anchored shopping center. The remaining Class A units were awarded primarily to our key executive officers. The Class A Units are apportioned a percentage of our financial results as non-controlling interests. The weighted average ownership percentage of these holders of Class A Units was calculated to be 1.83% and 2.26% for the three-month periods ended December 31, 2019 and 2018, respectively.
|
3)
|
We paid loan coordination fees to Preferred Apartment Advisors, LLC, our Manager, to reflect the administrative effort involved in arranging debt financing for acquired properties. The fees are calculated as 0.6% of the amount of any mortgage indebtedness on newly-acquired properties or refinancing and are amortized over the lives of the respective mortgage loans. This non-cash amortization expense is an addition to FFO in the calculation of AFFO. At December 31, 2019, aggregate unamortized loan coordination fees were approximately $14.1 million, which will be amortized over a weighted average remaining loan life of approximately 10.3 years.
|
4)
|
We sustained weather related operating losses due to hurricanes (primarily due to Hurricane Harvey at our Stone Creek multifamily
|
5)
|
We incur loan closing costs on our existing mortgage loans, which are secured on a property-by-property basis by each of our acquired real estate assets, and also for occasional amendments to our syndicated revolving line of credit with Key Bank National Association, or our Revolving Line of Credit. Effective April 13, 2018, the maximum borrowing capacity on the Revolving Line of Credit was increased from $150 million to $200 million. These loan closing costs are also amortized over the lives of the respective loans and the Revolving Line of Credit, and this non-cash amortization expense is an addition to FFO in the calculation of AFFO. Neither we nor the Operating Partnership have any recourse liability in connection with any of the mortgage loans, nor do we have any cross-collateralization arrangements with respect to the assets securing the mortgage loans, other than security interests in 49% of the equity interests of the subsidiaries owning such assets, granted in connection with our Revolving Line of Credit, which provides for full recourse liability. At December 31, 2019, aggregate unamortized loan costs were approximately $25.7 million, which will be amortized over a weighted average remaining loan life of approximately 9.0 years.
|
6)
|
We receive loan origination fees in conjunction with the origination of certain real estate loan investments. These fees are then recognized as revenue over the lives of the applicable loans as adjustments of yield using the effective interest method. The total fees received after the payment of loan origination fees to our Manager are additive adjustments in the calculation of AFFO. Correspondingly, the amortized non-cash income is a deduction in the calculation of AFFO. Over the lives of certain loans, we accrue additional interest amounts that become due to us at the time of repayment of the loan or refinancing of the property, or when the property is sold. This non-cash interest income is subtracted from FFO in our calculation of AFFO. The amount of additional accrued interest becomes an additive adjustment to FFO once received from the borrower (see note 7).
|
7)
|
This adjustment reflects the receipt during the periods presented of additional interest income (described in note 6 above) which was earned and accrued prior to those periods presented on various real estate loans.
|
8)
|
This adjustment reflects the add-back of due diligence and pursuit costs incurred by the Company related to the Internalization of the functions performed by its Manager.
|
9)
|
This adjustment removes the non-cash amortization of costs incurred to induce tenants to lease space in our office buildings and grocery-anchored shopping centers.
|
10)
|
Effective January 1, 2019, we terminated our purchase options on the Sanibel Straits, Newbergh, Wiregrass and Cameron Square multifamily communities and the Solis Kennesaw student housing property; on May 7, 2018, we terminated our purchase options on the Encore, Bishop Street and Hidden River multifamily communities and the Haven46 and Haven Charlotte student housing properties, all of which are (or were) partially supported by real estate loan investments held by us. In exchange, we arranged to receive termination fees aggregating approximately $20.6 million from the developers, which are recorded as revenue over the period beginning on the date of election until the earlier of (i) the maturity of the real estate loan investment and (ii) the sale of the property. The receipt of the cash termination fees are an additive adjustment in our calculation of AFFO and the removal of non-cash revenue from the recognition of the termination fees are a reduction to FFO in our calculation of AFFO; both of these adjustments are presented in a single net number within this line. For the
|
11)
|
This adjustment reflects straight-line rent adjustments and the reversal of the non-cash amortization of below-market and above-market lease intangibles, which were recognized in conjunction with our acquisitions and which are amortized over the estimated average remaining lease terms from the acquisition date for multifamily communities and over the remaining lease terms for grocery-anchored shopping center assets and office buildings. At December 31, 2019, the balance of unamortized below-market lease intangibles was approximately $62.6 million, which will be recognized over a weighted average remaining lease period of approximately 9.2 years.
|
12)
|
This adjustment removes the non-cash amortization of deferred revenue recorded by us in conjunction with Company-owned lessee-funded tenant improvements in our office buildings.
|
13)
|
We deduct from FFO normally recurring capital expenditures that are necessary to maintain our assets’ revenue streams in the calculation of AFFO. This adjustment also deducts from FFO capitalized amounts for third party costs during the period to originate or renew leases in our grocery-anchored shopping centers and office buildings. No adjustment is made in the calculation of AFFO for nonrecurring capital expenditures. See Capital Expenditures, Grocery-Anchored Shopping Center Portfolio, and Office Buildings Portfolio sections for definitions of these terms.
|
•
|
operating expenses directly related to our portfolio of multifamily communities, student housing properties, grocery-anchored shopping centers and office properties (including regular maintenance items);
|
•
|
operating expenses related to salaries, benefits, and general and administrative expenses (that were formally funded by payment of fees to our former Manager prior to Internalization on January 31, 2020);
|
•
|
capital expenditures incurred to lease our multifamily communities, student housing properties, grocery-anchored shopping centers and office properties;
|
•
|
interest expense on our outstanding property level debt;
|
•
|
amounts due on our Credit Facility;
|
•
|
distributions that we pay to our preferred stockholders, common stockholders, and unitholders;
|
•
|
cash redemptions that we may pay to our preferred stockholders, and
|
•
|
committed investments.
|
|
Capital Expenditures
|
||||||||||||||||||||||
|
Recurring
|
|
Non-recurring
|
|
Total
|
||||||||||||||||||
(In thousands, except per-unit amounts)
|
Amount
|
|
Per Unit
|
|
Amount
|
|
Per Unit
|
|
Amount
|
|
Per Unit
|
||||||||||||
Appliances
|
$
|
492
|
|
|
$
|
48.55
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
492
|
|
|
$
|
48.55
|
|
Carpets
|
1,543
|
|
|
152.39
|
|
|
—
|
|
|
—
|
|
|
1,543
|
|
|
152.39
|
|
||||||
Wood flooring / vinyl
|
276
|
|
|
27.23
|
|
|
184
|
|
|
18.15
|
|
|
460
|
|
|
45.38
|
|
||||||
Blinds and ceiling fans
|
198
|
|
|
19.60
|
|
|
15
|
|
|
1.48
|
|
|
213
|
|
|
21.08
|
|
||||||
Fire safety
|
—
|
|
|
—
|
|
|
225
|
|
|
22.22
|
|
|
225
|
|
|
22.22
|
|
||||||
Furnace, air (HVAC)
|
494
|
|
|
48.80
|
|
|
19
|
|
|
1.84
|
|
|
513
|
|
|
50.64
|
|
||||||
Computers, equipment, misc.
|
15
|
|
|
1.50
|
|
|
275
|
|
|
27.20
|
|
|
290
|
|
|
28.70
|
|
||||||
Elevators
|
—
|
|
|
—
|
|
|
170
|
|
|
16.83
|
|
|
170
|
|
|
16.83
|
|
||||||
Exterior painting
|
—
|
|
|
—
|
|
|
1,439
|
|
|
142.12
|
|
|
1,439
|
|
|
142.12
|
|
||||||
Leasing office / common amenities
|
341
|
|
|
33.69
|
|
|
1,262
|
|
|
124.62
|
|
|
1,603
|
|
|
158.31
|
|
||||||
Major structural
|
—
|
|
|
—
|
|
|
2,391
|
|
|
236.25
|
|
|
2,391
|
|
|
236.25
|
|
||||||
Cabinets & countertops and unit upgrades
|
—
|
|
|
—
|
|
|
1,025
|
|
|
101.19
|
|
|
1,025
|
|
|
101.19
|
|
||||||
Landscaping & fencing
|
—
|
|
|
—
|
|
|
1,267
|
|
|
125.11
|
|
|
1,267
|
|
|
125.11
|
|
||||||
Parking lot
|
107
|
|
|
10.58
|
|
|
624
|
|
|
61.58
|
|
|
731
|
|
|
72.16
|
|
||||||
Signage and sanitation
|
—
|
|
|
—
|
|
|
107
|
|
|
10.57
|
|
|
107
|
|
|
10.57
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
$
|
3,466
|
|
|
$
|
342.34
|
|
|
$
|
9,003
|
|
|
$
|
889.16
|
|
|
$
|
12,469
|
|
|
$
|
1,231.50
|
|
|
Capital Expenditures
|
||||||||||||||||||||||
|
Recurring
|
|
Non-recurring
|
|
Total
|
||||||||||||||||||
(In thousands, except per-unit amounts)
|
Amount
|
|
Per Bed
|
|
Amount
|
|
Per Bed
|
|
Amount
|
|
Per Bed
|
||||||||||||
Appliances
|
$
|
103
|
|
|
$
|
17.42
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
103
|
|
|
$
|
17.42
|
|
Carpets
|
224
|
|
|
38.10
|
|
|
—
|
|
|
—
|
|
|
224
|
|
|
38.10
|
|
||||||
Wood flooring / vinyl
|
5
|
|
|
0.80
|
|
|
34
|
|
|
5.74
|
|
|
39
|
|
|
6.54
|
|
||||||
Blinds and ceiling fans
|
30
|
|
|
5.10
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
5.10
|
|
||||||
Fire safety
|
—
|
|
|
—
|
|
|
155
|
|
|
26.41
|
|
|
155
|
|
|
26.41
|
|
||||||
Furnace, air (HVAC)
|
111
|
|
|
18.81
|
|
|
296
|
|
|
50.26
|
|
|
407
|
|
|
69.07
|
|
||||||
Computers, equipment, misc.
|
11
|
|
|
1.81
|
|
|
150
|
|
|
25.43
|
|
|
161
|
|
|
27.24
|
|
||||||
Elevators
|
—
|
|
|
—
|
|
|
6
|
|
|
1.08
|
|
|
6
|
|
|
1.08
|
|
||||||
Exterior painting
|
—
|
|
|
—
|
|
|
806
|
|
|
136.93
|
|
|
806
|
|
|
136.93
|
|
||||||
Leasing office / common amenities
|
31
|
|
|
5.27
|
|
|
322
|
|
|
54.70
|
|
|
353
|
|
|
59.97
|
|
||||||
Major structural
|
—
|
|
|
—
|
|
|
1,917
|
|
|
325.76
|
|
|
1,917
|
|
|
325.76
|
|
||||||
Cabinets & countertops and unit upgrades
|
93
|
|
|
15.78
|
|
|
37
|
|
|
6.14
|
|
|
130
|
|
|
21.92
|
|
||||||
Landscaping & fencing
|
—
|
|
|
—
|
|
|
493
|
|
|
83.81
|
|
|
493
|
|
|
83.81
|
|
||||||
Parking lot
|
—
|
|
|
—
|
|
|
79
|
|
|
13.50
|
|
|
79
|
|
|
13.50
|
|
||||||
Signage and sanitation
|
—
|
|
|
—
|
|
|
143
|
|
|
24.27
|
|
|
143
|
|
|
24.27
|
|
||||||
Unit furniture
|
297
|
|
|
50.70
|
|
|
—
|
|
|
—
|
|
|
297
|
|
|
50.70
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
$
|
905
|
|
|
$
|
153.79
|
|
|
$
|
4,438
|
|
|
$
|
754.03
|
|
|
$
|
5,343
|
|
|
$
|
907.82
|
|
•
|
the principal amount of our long-term debt as it becomes due or matures;
|
•
|
capital expenditures needed for our multifamily communities, student housing properties, grocery-anchored shopping centers and office properties;
|
•
|
costs associated with current and future capital raising activities;
|
•
|
costs to acquire additional multifamily communities, student housing properties, grocery-anchored shopping centers, office properties or other real estate and enter into new and fund existing lending opportunities; and
|
•
|
our minimum distributions necessary to maintain our REIT status.
|
•
|
an offering of a maximum of 1,500,000 Units, with each Unit consisting of one share of Series A Redeemable Preferred Stock and one Warrant to purchase up to 20 shares of Common Stock (the "$1.5 Billion Unit Offering");
|
•
|
an offering of up to $400 million of equity or debt securities (the "2019 Shelf Offering"), including an offering of up to $125 million of Common Stock from time to time in an "at the market" offering (the "2019 ATM Offering"); and
|
•
|
an offering of up to 1,000,000 Shares of Series A1 Redeemable Preferred Stock ("Series A1 Preferred Stock"), Series M1 Redeemable Preferred Stock ("Series M1 Preferred Stock"), or a combination of both (collectively the "Series A1/M1 Offering").
|
(In thousands)
|
|
Total
|
|
Less than one year
|
|
1-3 years
|
|
3-5 years
|
|
More than five years
|
||||||||||
Mortgage debt obligations:
|
|
|
|
|
|
|
|
|
||||||||||||
Interest
|
|
$
|
826,535
|
|
|
$
|
104,264
|
|
|
$
|
191,625
|
|
|
$
|
160,006
|
|
|
$
|
370,640
|
|
Principal
|
|
2,609,829
|
|
|
76,341
|
|
|
405,507
|
|
|
519,484
|
|
|
1,608,497
|
|
|||||
2019 Interim Term Loan:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest
|
|
129
|
|
|
129
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Principal
|
|
70,000
|
|
|
70,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
3,506,493
|
|
|
$
|
250,734
|
|
|
$
|
597,132
|
|
|
$
|
679,490
|
|
|
$
|
1,979,137
|
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
Balance
(in thousands)
|
|
Percentage of total mortgage indebtedness
|
|
LIBOR Cap
|
|
All-in Cap
|
|||||
Avenues at Creekside
|
$
|
38,871
|
|
|
|
|
5.0
|
%
|
|
6.6
|
%
|
|
The Tradition
|
30,000
|
|
|
|
|
3.3
|
%
|
|
7.0
|
%
|
||
The Bloc
|
28,966
|
|
|
|
|
3.3
|
%
|
|
6.8
|
%
|
||
Total capped floating-rate debt
|
97,837
|
|
|
3.8
|
%
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||||
Ursa
|
31,400
|
|
|
|
|
n/a
|
|
|
n/a
|
|
||
Champions Village
|
27,400
|
|
|
|
|
n/a
|
|
|
n/a
|
|
||
Fairfield Shopping Center
|
19,750
|
|
|
|
|
n/a
|
|
|
n/a
|
|
||
Total uncapped floating-rate debt
|
78,550
|
|
|
3.0
|
%
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||||
Total floating-rate debt
|
$
|
176,387
|
|
|
6.8
|
%
|
|
|
|
|
•
|
maintain a reasonable ratio of fixed-rate, long-term debt to total debt so that floating-rate exposure is kept at an acceptable level;
|
•
|
place interest rate caps on floating-rate debt where appropriate; and
|
•
|
take advantage of favorable market conditions for long-term debt and/or equity financings.
|
Item 9A.
|
Controls and Procedures
|
•
|
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and/or the board of directors of the Company; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.
|
Item 9B.
|
Other Information
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Item 13.
|
Certain Relationships and Related Transactions and Director Independence
|
Item 14.
|
Principal Accounting Fees and Services
|
Preferred Apartment Communities, Inc.
|
||||||||
Consolidated Balance Sheets
|
||||||||
|
|
|
|
|
||||
(In thousands, except per-share par values)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Assets
|
|
|
|
|
||||
Real estate
|
|
|
|
|
||||
Land
|
|
$
|
635,757
|
|
|
$
|
519,300
|
|
Building and improvements
|
|
3,256,223
|
|
|
2,738,085
|
|
||
Tenant improvements
|
|
167,275
|
|
|
128,914
|
|
||
Furniture, fixtures, and equipment
|
|
323,381
|
|
|
278,151
|
|
||
Construction in progress
|
|
11,893
|
|
|
8,265
|
|
||
Gross real estate
|
|
4,394,529
|
|
|
3,672,715
|
|
||
Less: accumulated depreciation
|
|
(421,551
|
)
|
|
(272,042
|
)
|
||
Net real estate
|
|
3,972,978
|
|
|
3,400,673
|
|
||
Real estate loan investments, net of deferred fee income and allowance for loan loss
|
|
325,790
|
|
|
282,548
|
|
||
Real estate loan investments to related parties, net
|
|
23,692
|
|
|
51,663
|
|
||
Total real estate and real estate loan investments, net
|
|
4,322,460
|
|
|
3,734,884
|
|
||
|
|
|
|
|
||||
Cash and cash equivalents
|
|
94,381
|
|
|
38,958
|
|
||
Restricted cash
|
|
42,872
|
|
|
48,732
|
|
||
Notes receivable
|
|
17,079
|
|
|
14,440
|
|
||
Note receivable and revolving lines of credit due from related parties
|
|
24,838
|
|
|
32,867
|
|
||
Accrued interest receivable on real estate loans
|
|
25,755
|
|
|
23,340
|
|
||
Acquired intangible assets, net of amortization of $149,896 and $113,199
|
|
154,803
|
|
|
135,961
|
|
||
Deferred loan costs on Revolving Line of Credit, net of amortization of $849 and $180
|
|
1,286
|
|
|
1,916
|
|
||
Deferred offering costs
|
|
2,147
|
|
|
6,468
|
|
||
Tenant lease inducements, net of amortization of $3,567 and $1,833
|
|
19,607
|
|
|
20,698
|
|
||
Receivable from sale of mortgage-backed security
|
|
—
|
|
|
41,181
|
|
||
Tenant receivables (net of allowance of $0 and $1,662) and other assets
|
|
65,332
|
|
|
41,567
|
|
||
Variable Interest Entity ("VIE") assets from mortgage-backed pool, at fair value
|
|
—
|
|
|
269,946
|
|
||
|
|
|
|
|
||||
Total assets
|
|
$
|
4,770,560
|
|
|
$
|
4,410,958
|
|
|
|
|
|
|
||||
Liabilities and equity
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
||||
Mortgage notes payable, net of deferred loan costs and
|
|
|
|
|
||||
mark-to-market adjustment of $42,807 and $40,127
|
|
$
|
2,567,022
|
|
|
$
|
2,299,625
|
|
Revolving line of credit
|
|
—
|
|
|
57,000
|
|
||
Term note payable, net of deferred loan costs of $511 and $0
|
|
69,489
|
|
|
—
|
|
||
Real estate loan investment participation obligation
|
|
—
|
|
|
5,181
|
|
||
Unearned purchase option termination fees
|
|
2,859
|
|
|
2,050
|
|
||
Deferred revenue
|
|
39,722
|
|
|
43,484
|
|
||
Accounts payable and accrued expenses
|
|
42,191
|
|
|
38,618
|
|
||
Accrued interest payable
|
|
8,152
|
|
|
6,711
|
|
||
Dividends and partnership distributions payable
|
|
23,519
|
|
|
19,258
|
|
||
Acquired below market lease intangibles, net of amortization of $23,655 and $15,254
|
|
62,611
|
|
|
47,149
|
|
||
Prepaid rent, security deposits, and other liabilities
|
|
20,879
|
|
|
17,611
|
|
||
VIE liabilities from mortgage-backed pool, at fair value
|
|
—
|
|
|
264,886
|
|
||
Total liabilities
|
|
2,836,444
|
|
|
2,801,573
|
|
||
|
|
|
|
|
||||
Commitments and contingencies (Note 11)
|
|
|
|
|
||||
|
|
|
|
|
||||
Equity
|
|
|
|
|
||||
Stockholders' equity
|
|
|
|
|
||||
Series A Redeemable Preferred Stock, $0.01 par value per share; 3,050 shares authorized; 2,161 and 1,674 shares
|
|
|
|
|||||
issued; 2,028 and 1,608 shares outstanding at December 31, 2019 and December 31, 2018, respectively
|
20
|
|
|
16
|
|
|||
Series A1 Redeemable Preferred Stock, $0.01 par value per share; up to 1,000 shares authorized; 5 and no shares
|
|
|
|
|||||
issued and outstanding at December 31, 2019 and December 31, 2018, respectively
|
—
|
|
|
—
|
|
|||
Series M Redeemable Preferred Stock, $0.01 par value per share; 500 shares authorized; 106 and 44 shares issued;
|
|
|
|
|||||
103 and 44 shares outstanding at December 31, 2019 and December 31, 2018, respectively
|
1
|
|
|
—
|
|
|||
Series M1 Redeemable Preferred Stock, $0.01 par value per share; up to 1,000 shares authorized; no shares
|
|
|
|
|||||
issued and outstanding at December 31, 2019 or December 31, 2018
|
—
|
|
|
—
|
|
|||
Common Stock, $0.01 par value per share; 400,067 shares authorized; 46,443 and 41,776 shares issued and
|
|
|
|
|||||
outstanding at December 31, 2019 and December 31, 2018, respectively
|
464
|
|
|
418
|
|
|||
Additional paid-in capital
|
|
1,938,057
|
|
|
1,607,712
|
|
||
Accumulated (deficit) earnings
|
|
(7,244
|
)
|
|
—
|
|
||
Total stockholders' equity
|
|
1,931,298
|
|
|
1,608,146
|
|
||
Non-controlling interest
|
|
2,818
|
|
|
1,239
|
|
||
Total equity
|
|
1,934,116
|
|
|
1,609,385
|
|
||
|
|
|
|
|
||||
Total liabilities and equity
|
|
$
|
4,770,560
|
|
|
$
|
4,410,958
|
|
Preferred Apartment Communities, Inc.
|
|||||||||||
Consolidated Statements of Operations
|
|||||||||||
|
|
|
|
|
|
||||||
(In thousands, except per-share figures)
|
Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Rental revenues
|
$
|
395,121
|
|
|
$
|
323,252
|
|
|
$
|
231,895
|
|
Other property revenues
|
11,795
|
|
|
8,213
|
|
|
4,958
|
|
|||
Interest income on loans and notes receivable
|
49,542
|
|
|
50,190
|
|
|
35,948
|
|
|||
Interest income from related parties
|
11,946
|
|
|
15,616
|
|
|
21,204
|
|
|||
Miscellaneous revenues
|
2,023
|
|
|
—
|
|
|
—
|
|
|||
Total revenues
|
470,427
|
|
|
397,271
|
|
|
294,005
|
|
|||
|
|
|
|
|
|
||||||
Operating expenses:
|
|
|
|
|
|
||||||
Property operating and maintenance
|
52,911
|
|
|
44,065
|
|
|
29,903
|
|
|||
Property salary and benefits (including reimbursements of $18,054,
|
|
|
|
|
|
||||||
$16,276, and $12,329 to related party)
|
20,693
|
|
|
17,766
|
|
|
13,272
|
|
|||
Property management fees (including $10,307, $8,976 and $6,417 to related parties)
|
13,981
|
|
|
11,681
|
|
|
8,329
|
|
|||
Real estate taxes
|
50,298
|
|
|
42,035
|
|
|
31,281
|
|
|||
General and administrative
|
8,541
|
|
|
8,224
|
|
|
6,490
|
|
|||
Equity compensation to directors and executives
|
1,223
|
|
|
1,703
|
|
|
3,470
|
|
|||
Depreciation and amortization
|
185,065
|
|
|
171,136
|
|
|
116,777
|
|
|||
Asset management and general and administrative expense fees to related party
|
33,516
|
|
|
27,541
|
|
|
20,226
|
|
|||
Loan loss allowance
|
2,038
|
|
|
2,533
|
|
|
—
|
|
|||
Insurance, professional fees and other expenses
|
13,687
|
|
|
7,166
|
|
|
6,598
|
|
|||
Total operating expenses
|
381,953
|
|
|
333,850
|
|
|
236,346
|
|
|||
|
|
|
|
|
|
||||||
Waived asset management and general and administrative expense fees
|
(11,764
|
)
|
|
(6,656
|
)
|
|
(1,729
|
)
|
|||
|
|
|
|
|
|
||||||
Net operating expenses
|
370,189
|
|
|
327,194
|
|
|
234,617
|
|
|||
|
|
|
|
|
|
||||||
Operating income before gains on sales of real estate and trading investments
|
100,238
|
|
|
70,077
|
|
|
59,388
|
|
|||
Gains on sales of real estate and trading investments
|
1,567
|
|
|
69,705
|
|
|
37,635
|
|
|||
Operating income
|
101,805
|
|
|
139,782
|
|
|
97,023
|
|
|||
Interest expense
|
111,964
|
|
|
95,564
|
|
|
67,468
|
|
|||
Change in fair value of net assets of consolidated VIEs from mortgage-backed pools
|
1,831
|
|
|
320
|
|
|
—
|
|
|||
Loss on extinguishment of debt
|
(84
|
)
|
|
—
|
|
|
(888
|
)
|
|||
Gains on sale of real estate loan investment and land condemnation
|
954
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Net (loss) income
|
(7,458
|
)
|
|
44,538
|
|
|
28,667
|
|
|||
Consolidated net loss (income) attributable to non-controlling interests
|
214
|
|
|
(1,071
|
)
|
|
(986
|
)
|
|||
|
|
|
|
|
|
||||||
Net (loss) income attributable to the Company
|
(7,244
|
)
|
|
43,467
|
|
|
27,681
|
|
|||
|
|
|
|
|
|
||||||
Dividends declared to preferred stockholders
|
(113,772
|
)
|
|
(86,741
|
)
|
|
(63,651
|
)
|
|||
Earnings attributable to unvested restricted stock
|
(17
|
)
|
|
(16
|
)
|
|
(15
|
)
|
|||
|
|
|
|
|
|
||||||
Net loss attributable to common stockholders
|
$
|
(121,033
|
)
|
|
$
|
(43,290
|
)
|
|
$
|
(35,985
|
)
|
|
|
|
|
|
|
||||||
Net loss per share of Common Stock available
|
|
|
|
|
|
||||||
to common stockholders, basic and diluted
|
$
|
(2.73
|
)
|
|
$
|
(1.08
|
)
|
|
$
|
(1.13
|
)
|
|
|
|
|
|
|
||||||
Weighted average number of shares of Common Stock outstanding,
|
|
|
|
|
|
||||||
basic and diluted
|
44,265
|
|
|
40,032
|
|
|
31,926
|
|
Preferred Apartment Communities, Inc.
|
||||||||||||||||||||||||||||
Consolidated Statements of Stockholders' Equity
|
||||||||||||||||||||||||||||
For the years ended December 31, 2019, 2018 and 2017
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(In thousands, except dividend per-share figures)
|
|
Series A and Series M Redeemable Preferred Stock
|
|
Common Stock
|
|
Additional Paid in Capital
|
|
Accumulated Earnings
|
|
Total Stockholders' Equity
|
|
Non-Controlling Interest
|
|
Total Equity
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at January 1, 2019
|
|
$
|
16
|
|
|
$
|
418
|
|
|
$
|
1,607,712
|
|
|
$
|
—
|
|
|
$
|
1,608,146
|
|
|
$
|
1,239
|
|
|
$
|
1,609,385
|
|
Issuance of Series A Preferred Shares
|
|
5
|
|
|
—
|
|
|
482,144
|
|
|
—
|
|
|
482,149
|
|
|
—
|
|
|
482,149
|
|
|||||||
Issuance of mShares Preferred Shares
|
|
1
|
|
|
—
|
|
|
61,757
|
|
|
—
|
|
|
61,758
|
|
|
—
|
|
|
61,758
|
|
|||||||
Issuance of Series A1/M1 Preferred Shares
|
|
—
|
|
|
—
|
|
|
4,731
|
|
|
—
|
|
|
4,731
|
|
|
—
|
|
|
4,731
|
|
|||||||
Exercise of warrants
|
|
—
|
|
|
9
|
|
|
11,486
|
|
|
—
|
|
|
11,495
|
|
|
—
|
|
|
11,495
|
|
|||||||
Redemptions of Series A Preferred Stock
|
|
(1
|
)
|
|
36
|
|
|
(12,140
|
)
|
|
—
|
|
|
(12,105
|
)
|
|
—
|
|
|
(12,105
|
)
|
|||||||
Syndication and Offering Costs
|
|
—
|
|
|
—
|
|
|
(60,165
|
)
|
|
—
|
|
|
(60,165
|
)
|
|
—
|
|
|
(60,165
|
)
|
|||||||
Equity compensation to executives and directors
|
|
—
|
|
|
—
|
|
|
632
|
|
|
—
|
|
|
632
|
|
|
—
|
|
|
632
|
|
|||||||
Conversion of Class A to Common stock
|
|
—
|
|
|
1
|
|
|
676
|
|
|
—
|
|
|
677
|
|
|
(677
|
)
|
|
—
|
|
|||||||
Current Period Amortization of Class B Units
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
591
|
|
|
591
|
|
|||||||
Net Income (Loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,244
|
)
|
|
(7,244
|
)
|
|
(214
|
)
|
|
(7,458
|
)
|
|||||||
Contributions from Minority Holders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,538
|
|
|
4,538
|
|
|||||||
Reallocation of minority interest in PAC OP
|
|
—
|
|
|
—
|
|
|
1,751
|
|
|
—
|
|
|
1,751
|
|
|
(1,751
|
)
|
|
—
|
|
|||||||
Distributions to Minority Holders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(908
|
)
|
|
(908
|
)
|
|||||||
Dividends to Series A preferred stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
($5.00 per share per month)
|
|
—
|
|
|
—
|
|
|
(108,950
|
)
|
|
—
|
|
|
(108,950
|
)
|
|
—
|
|
|
(108,950
|
)
|
|||||||
Dividends to mShares preferred stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
($4.79 - $6.25 per share per month)
|
|
—
|
|
|
—
|
|
|
(4,807
|
)
|
|
—
|
|
|
(4,807
|
)
|
|
—
|
|
|
(4,807
|
)
|
|||||||
Dividends to Series A1/M1 preferred stockholders
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(15
|
)
|
|||||||
Dividends to common stockholders ($1.0475 per share)
|
|
—
|
|
|
—
|
|
|
(46,755
|
)
|
|
—
|
|
|
(46,755
|
)
|
|
—
|
|
|
(46,755
|
)
|
|||||||
Balance at December 31, 2019
|
|
$
|
21
|
|
|
$
|
464
|
|
|
$
|
1,938,057
|
|
|
$
|
(7,244
|
)
|
|
$
|
1,931,298
|
|
|
$
|
2,818
|
|
|
$
|
1,934,116
|
|
Preferred Apartment Communities, Inc.
|
||||||||||||||||||||||||||||
Consolidated Statements of Stockholders' Equity, continued
|
||||||||||||||||||||||||||||
For the years ended December 31, 2019, 2018 and 2017
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(In thousands, except dividend per-share figures)
|
|
Series A and
Series M Redeemable Preferred Stock
|
|
Common Stock
|
|
Additional Paid in Capital
|
|
Accumulated Earnings
|
|
Total Stockholders' Equity
|
|
Non-Controlling Interest
|
|
Total Equity
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at January 1, 2018
|
|
$
|
12
|
|
|
$
|
386
|
|
|
$
|
1,271,040
|
|
|
$
|
4,449
|
|
|
$
|
1,275,887
|
|
|
$
|
4,879
|
|
|
$
|
1,280,766
|
|
Issuance of Units
|
|
4
|
|
|
—
|
|
|
420,389
|
|
|
—
|
|
|
420,393
|
|
|
—
|
|
|
420,393
|
|
|||||||
Issuance of mShares
|
|
—
|
|
|
—
|
|
|
28,951
|
|
|
—
|
|
|
28,951
|
|
|
—
|
|
|
28,951
|
|
|||||||
Redemptions of Series A Preferred Stock
|
|
—
|
|
|
17
|
|
|
(9,445
|
)
|
|
—
|
|
|
(9,428
|
)
|
|
—
|
|
|
(9,428
|
)
|
|||||||
Exercises of Warrants
|
|
—
|
|
|
12
|
|
|
16,042
|
|
|
—
|
|
|
16,054
|
|
|
—
|
|
|
16,054
|
|
|||||||
Syndication and offering costs
|
|
—
|
|
|
—
|
|
|
(44,681
|
)
|
|
—
|
|
|
(44,681
|
)
|
|
—
|
|
|
(44,681
|
)
|
|||||||
Equity compensation to executives and directors
|
|
—
|
|
|
—
|
|
|
537
|
|
|
—
|
|
|
537
|
|
|
—
|
|
|
537
|
|
|||||||
Conversion of Class A Units to Common Stock
|
|
—
|
|
|
3
|
|
|
2,011
|
|
|
—
|
|
|
2,014
|
|
|
(2,014
|
)
|
|
—
|
|
|||||||
Current period amortization of Class B Units
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,166
|
|
|
1,166
|
|
|||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,467
|
|
|
43,467
|
|
|
1,071
|
|
|
44,538
|
|
|||||||
Reallocation adjustment to non-controlling interests
|
|
—
|
|
|
—
|
|
|
2,822
|
|
|
—
|
|
|
2,822
|
|
|
(2,822
|
)
|
|
—
|
|
|||||||
Distributions to non-controlling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,041
|
)
|
|
(1,041
|
)
|
|||||||
Dividends to Series A preferred stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
($5.00 per share per month)
|
|
—
|
|
|
—
|
|
|
(37,975
|
)
|
|
(46,867
|
)
|
|
(84,842
|
)
|
|
—
|
|
|
(84,842
|
)
|
|||||||
Dividends to mShares preferred stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
($4.79 - $6.25 per share per month)
|
|
—
|
|
|
—
|
|
|
(850
|
)
|
|
(1,049
|
)
|
|
(1,899
|
)
|
|
—
|
|
|
(1,899
|
)
|
|||||||
Dividends to common stockholders ($1.02 per share)
|
|
—
|
|
|
—
|
|
|
(41,129
|
)
|
|
—
|
|
|
(41,129
|
)
|
|
—
|
|
|
(41,129
|
)
|
|||||||
Balance at December 31, 2018
|
|
$
|
16
|
|
|
$
|
418
|
|
|
$
|
1,607,712
|
|
|
$
|
—
|
|
|
$
|
1,608,146
|
|
|
$
|
1,239
|
|
|
$
|
1,609,385
|
|
Preferred Apartment Communities, Inc.
|
||||||||||||||||||||||||||||
Consolidated Statements of Stockholders' Equity, continued
|
||||||||||||||||||||||||||||
For the years ended December 31, 2019, 2018 and 2017
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(In thousands, except dividend per-share figures)
|
|
Series A and
Series M Redeemable Preferred Stock
|
|
Common Stock
|
|
Additional Paid in Capital
|
|
Accumulated Earnings
|
|
Total Stockholders' Equity
|
|
Non-Controlling Interest
|
|
Total Equity
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at January 1, 2017
|
|
$
|
9
|
|
|
$
|
265
|
|
|
$
|
906,738
|
|
|
$
|
(23,232
|
)
|
|
$
|
883,780
|
|
|
$
|
1,481
|
|
|
$
|
885,261
|
|
Issuance of Units
|
|
3
|
|
|
—
|
|
|
339,313
|
|
|
—
|
|
|
339,316
|
|
|
—
|
|
|
339,316
|
|
|||||||
Redemptions of Series A Preferred Stock
|
|
—
|
|
|
7
|
|
|
(4,507
|
)
|
|
—
|
|
|
(4,500
|
)
|
|
—
|
|
|
(4,500
|
)
|
|||||||
Issuance of Common Stock
|
|
—
|
|
|
50
|
|
|
76,755
|
|
|
—
|
|
|
76,805
|
|
|
—
|
|
|
76,805
|
|
|||||||
Exercises of Warrants
|
|
—
|
|
|
62
|
|
|
84,390
|
|
|
—
|
|
|
84,452
|
|
|
—
|
|
|
84,452
|
|
|||||||
Syndication and offering costs
|
|
—
|
|
|
—
|
|
|
(37,507
|
)
|
|
—
|
|
|
(37,507
|
)
|
|
—
|
|
|
(37,507
|
)
|
|||||||
Equity compensation to executives and directors
|
|
—
|
|
|
—
|
|
|
467
|
|
|
—
|
|
|
467
|
|
|
—
|
|
|
467
|
|
|||||||
Conversion of Class A Units to Common Stock
|
|
—
|
|
|
2
|
|
|
1,751
|
|
|
—
|
|
|
1,753
|
|
|
(1,753
|
)
|
|
—
|
|
|||||||
Current period amortization of Class B Units
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,003
|
|
|
3,003
|
|
|||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,681
|
|
|
27,681
|
|
|
986
|
|
|
28,667
|
|
|||||||
Minority interest in joint venture
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
540
|
|
|
540
|
|
|||||||
Reallocation adjustment to non-controlling interests
|
|
—
|
|
|
—
|
|
|
(1,465
|
)
|
|
—
|
|
|
(1,465
|
)
|
|
1,465
|
|
|
—
|
|
|||||||
Distributions to non-controlling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(843
|
)
|
|
(843
|
)
|
|||||||
Dividends to Series A preferred stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
($5.00 per share per month)
|
|
—
|
|
|
—
|
|
|
(63,176
|
)
|
|
—
|
|
|
(63,176
|
)
|
|
—
|
|
|
(63,176
|
)
|
|||||||
Dividends to mShares preferred stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
($4.79 - $6.25 per share per month)
|
|
—
|
|
|
—
|
|
|
(475
|
)
|
|
—
|
|
|
(475
|
)
|
|
—
|
|
|
(475
|
)
|
|||||||
Dividends to common stockholders ($0.94 per share)
|
|
—
|
|
|
—
|
|
|
(31,244
|
)
|
|
—
|
|
|
(31,244
|
)
|
|
—
|
|
|
(31,244
|
)
|
|||||||
Balance at December 31, 2017
|
|
$
|
12
|
|
|
$
|
386
|
|
|
$
|
1,271,040
|
|
|
$
|
4,449
|
|
|
$
|
1,275,887
|
|
|
$
|
4,879
|
|
|
$
|
1,280,766
|
|
1.
|
Organization and Basis of Presentation
|
2.
|
Summary of Significant Accounting Policies
|
Standard
|
Description
|
Date of Adoption
|
Effect on the Consolidated Financial Statements
|
Recently Adopted Accounting Guidance
|
|||
ASU 2016-02, Leases (Topic 842)
ASU 2018-11, Leases (Topic 842) Targeted Improvements
|
ASU 2016-02 requires a lessor to separate lease components from non-lease components, such as maintenance services or other activities that transfer a good or service to our residents and tenants in a contract.
In July 2018, the FASB issued ASU 2018-11 which allowed for a practical expedient for lessors to elect, by class of underlying assets, to not separate lease and non-lease components if both (1) the timing and pattern of revenue recognition are the same for the non-lease component(s) and related lease component and (2) the combined single lease component would be classified as an operating lease.
Additional practical expedients were also provided for under ASU 2018-11 related to expired or existing leases.
|
January 1, 2019
|
Having met the criteria that (i) the timing and pattern of transfer for the lease component and associated non-lease components are the same and (ii) that the lease component, if accounted for separately would be classified as an operating lease, the Company has elected the practical expedient within ASU 2018-11, as codified under ASC 842-10-15-42A, to elect reporting the lease component and non-lease components as one single component under Rental Revenues recognized in accordance with ASC 842. This change had no material effect on the timing of revenue recognition.
The Company has also elected to implement the package of practical expedients provided within ASU 2018-11, as codified under ASC 842-10-65-1(f), which allows the Company not to reassess whether expired or existing contracts contain leases, its lease classification, and any related initial direct costs.
|
ASU 2018-20, Leases (ASC 842), Narrow-Scope Improvements for Lessors
|
ASU 2018-20 eliminates the requirement to record income and offsetting expense for certain variable costs paid for by lessees on behalf of lessors.
|
January 1, 2019
|
The Company no longer records income and expense for property taxes paid directly to the taxing authority by a lessee based on this standard. The effect is a reduction of other property revenues and of property tax expense, with no effect upon net income/loss.
|
Standard
|
Description
|
Date of Adoption
|
Effect on the Consolidated Financial Statements
|
Recently Issued Accounting Guidance Not Yet Adopted
|
|||
ASU 2016-13, Financial Instruments - Credit Losses (ASC 326)
|
ASU 2016-03 changes how entities will measure credit losses for most financial assets, including loans, which are not measured at fair value through net income. The guidance replaces the existing incurred loss model with an expected loss model for instruments measured at amortized cost, and requires entities to record credit allowances for financial assets rather than reduce the carrying amount, as they do today under the other-than temporary impairment model.
|
January 1, 2020
|
Implementation of the new guidance on accounting for financial assets will be limited to our real estate loans and notes and revolving lines of credit. We have developed a model that derives a reserve ratio based upon the amount of financial protection afforded each instrument. For each loan in which we are the lender, the amount of protection afforded to us is estimated to be the excess of the future estimated fair market value of the developed property over the commitment amount of each loan (including other loans senior to the Company’s), inclusive of accrued interest and other related receivables. The excess represents the amount of equity dollars in each real estate project, which are in a subordinate position to our real estate loan investments. We expect to implement this new guidance using the modified retrospective basis by recording a cumulative effect adjustment to retained earnings on January 1, 2020. The amount of this adjustment is undergoing final refinement of assumptions and is expected to be approximately $6.5 million to $7.5 million, or approximately 1.5% of the Company’s ultimate exposure (the committed amount for all outstanding real estate loans plus related receivables).
|
|
|
As of:
|
||||
|
|
December 31, 2019
|
|
December 31, 2018
|
||
Multifamily communities:
|
|
|
|
|
||
Properties (1)
|
|
34
|
|
(1, 2)
|
32
|
|
Units
|
|
10,245
|
|
|
9,768
|
|
New Market Properties:
|
|
|
|
|
||
Properties
|
|
52
|
|
(2)
|
45
|
|
Gross leasable area (square feet) (3)
|
|
6,041,629
|
|
|
4,730,695
|
|
Student housing properties:
|
|
|
|
|
||
Properties
|
|
8
|
|
(2, 4)
|
7
|
|
Units
|
|
2,011
|
|
|
1,679
|
|
Beds
|
|
6,095
|
|
|
5,208
|
|
Preferred Office Properties:
|
|
|
|
|
||
Properties
|
|
10
|
|
(2)
|
7
|
|
Rentable square feet
|
|
3,204,000
|
|
|
2,578,000
|
|
|
|
|
|
|
||
(1) The acquired second phases of CityPark View and Crosstown Walk communities are managed in combination with the initial phases and so together are considered a single property, as is the Regent at Lenox Village within the Lenox Portfolio.
|
||||||
(2) One multifamily community, two student housing properties, two grocery-anchored shopping centers and two office buildings are owned through consolidated joint ventures.
|
||||||
(3) The Company also owns approximately 47,600 square feet of gross leasable area of ground floor retail space which is embedded within the Lenox Portfolio and is not included in the totals above for New Market Properties.
|
||||||
(4) Six of our student housing properties were under contract for sale at December 31, 2019.
|
|
McNeil Ranch
|
|
Stoneridge Farms
|
|
Stone Rise
|
|
Lake Cameron
|
||||||||
(In thousands)
|
December 11, 2018
|
|
October 23, 2018
|
|
September 28, 2018
|
|
March 20, 2018
|
||||||||
Real estate assets:
|
|
|
|
|
|
|
|
||||||||
Land
|
$
|
2,100
|
|
|
$
|
3,026
|
|
|
$
|
6,950
|
|
|
$
|
4,000
|
|
Building and improvements
|
16,300
|
|
|
35,740
|
|
|
18,860
|
|
|
21,519
|
|
||||
Furniture, fixtures and equipment
|
2,096
|
|
|
4,305
|
|
|
3,292
|
|
|
3,687
|
|
||||
Accumulated depreciation
|
(5,252
|
)
|
|
(6,601
|
)
|
|
(6,722
|
)
|
|
(7,220
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Total assets, net
|
$
|
15,244
|
|
|
$
|
36,470
|
|
|
$
|
22,380
|
|
|
$
|
21,986
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Mortgage note payable
|
$
|
13,418
|
|
|
$
|
25,626
|
|
|
$
|
23,520
|
|
|
$
|
19,736
|
|
Acquisition date
|
|
Property
|
|
Location
|
|
Units
|
|
|
|
|
|
|
|
|
|
8/8/2019
|
|
Artisan at Viera
|
|
Melbourne, Florida
|
|
259
|
|
9/18/2019
|
|
Five Oaks at Westchase
|
|
Tampa, Florida
|
|
218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
477
|
|
|
|
|
|
|
|
|
|
1/9/2018
|
|
The Lux at Sorrel
|
|
Jacksonville, Florida
|
|
265
|
|
2/28/2018
|
|
Green Park
|
|
Atlanta, Georgia
|
|
310
|
|
9/27/2018
|
|
The Lodge at Hidden River
|
|
Tampa, Florida
|
|
300
|
|
11/9/2018
|
|
Vestavia Reserve
|
|
Birmingham, Alabama
|
|
272
|
|
11/15/2018
|
|
CityPark View South
|
|
Charlotte, North Carolina
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,347
|
|
|
|
Multifamily Communities acquired during the years ended December 31,
|
||||||
(In thousands, except amortization period data)
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
Land
|
|
$
|
9,264
|
|
|
$
|
28,365
|
|
Buildings and improvements
|
|
87,098
|
|
|
181,931
|
|
||
Furniture, fixtures and equipment
|
|
19,806
|
|
|
44,474
|
|
||
Lease intangibles
|
|
2,647
|
|
|
8,257
|
|
||
Prepaids & other assets
|
|
75
|
|
|
569
|
|
||
Accrued taxes
|
|
(477
|
)
|
|
(684
|
)
|
||
Security deposits, prepaid rents, and other liabilities
|
|
(118
|
)
|
|
(494
|
)
|
||
|
|
|
|
|
||||
Net assets acquired
|
|
$
|
118,295
|
|
|
$
|
262,418
|
|
|
|
|
|
|
||||
Cash paid
|
|
$
|
78,295
|
|
|
$
|
87,592
|
|
Mortgage debt, net
|
|
40,000
|
|
|
174,826
|
|
||
|
|
|
|
|
||||
Total consideration
|
|
$
|
118,295
|
|
|
$
|
262,418
|
|
|
|
|
|
|
||||
Year ended December 31, 2019:
|
|
|
|
|
||||
Revenue
|
|
$
|
2,967
|
|
|
$
|
23,734
|
|
Net income (loss)
|
|
$
|
(2,074
|
)
|
|
$
|
(10,489
|
)
|
|
|
|
|
|
||||
Year ended December 31, 2018:
|
|
|
|
|
||||
Revenue
|
|
$
|
—
|
|
|
$
|
11,533
|
|
Net income (loss)
|
|
$
|
—
|
|
|
$
|
(8,704
|
)
|
|
|
|
|
|
||||
Capitalized acquisition costs incurred by the Company
|
|
$
|
1,771
|
|
|
$
|
4,412
|
|
Acquisition costs paid to related party (included above)
|
|
$
|
1,216
|
|
|
$
|
2,615
|
|
Remaining amortization period of intangible
|
|
|
|
|
||||
assets and liabilities (months)
|
|
7.1
|
|
|
0
|
|
||
|
|
|
|
|
|
|
Student housing properties acquired during the years ended December 31,
|
||||||
(In thousands, except amortization period data)
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
Land
|
|
$
|
7,289
|
|
|
$
|
23,149
|
|
Buildings and improvements
|
|
68,163
|
|
|
146,856
|
|
||
Furniture, fixtures and equipment
|
|
16,966
|
|
|
27,211
|
|
||
Lease intangibles
|
|
983
|
|
|
2,494
|
|
||
Below market leases
|
|
—
|
|
|
(54
|
)
|
||
Prepaids & other assets
|
|
—
|
|
|
309
|
|
||
Accrued taxes
|
|
(158
|
)
|
|
(942
|
)
|
||
Security deposits, prepaid rents, and other liabilities
|
|
(2,579
|
)
|
|
(720
|
)
|
||
|
|
|
|
|
||||
Net assets acquired
|
|
$
|
90,664
|
|
|
$
|
198,303
|
|
|
|
|
|
|
||||
Cash paid
|
|
$
|
2,717
|
|
|
$
|
92,212
|
|
Satisfaction of loan receivables
|
|
46,397
|
|
|
—
|
|
||
Mortgage debt, net
|
|
41,550
|
|
|
106,091
|
|
||
|
|
|
|
|
||||
Total consideration
|
|
$
|
90,664
|
|
|
$
|
198,303
|
|
|
|
|
|
|
||||
Year ended December 31, 2019:
|
|
|
|
|
||||
Revenue
|
|
$
|
5,532
|
|
|
$
|
17,599
|
|
Net income (loss)
|
|
$
|
(2,946
|
)
|
|
$
|
(7,010
|
)
|
|
|
|
|
|
||||
Year ended December 31, 2018:
|
|
|
|
|
||||
Revenue
|
|
$
|
—
|
|
|
$
|
9,882
|
|
Net income (loss)
|
|
$
|
—
|
|
|
$
|
(7,797
|
)
|
|
|
|
|
|
||||
Capitalized acquisition costs incurred by the Company
|
|
$
|
1,016
|
|
|
$
|
2,555
|
|
Acquisition costs to related party
|
|
$
|
936
|
|
|
$
|
1,970
|
|
|
|
|
|
|
||||
Remaining amortization period of intangible
|
|
|
|
|
||||
assets and liabilities (months)
|
|
0
|
|
|
0
|
|
Acquisition date
|
|
Property
|
|
Location
|
|
Gross leasable area (square feet)
|
|
|
|
|
|
|
|
|
|
1/17/2019
|
|
Gayton Crossing
|
|
Richmond, Virginia
|
|
158,316
|
|
5/28/2019
|
|
Free State Shopping Center
|
|
Washington, D.C.
|
|
264,152
|
|
6/12/2019
|
|
Disston Plaza
|
|
Tampa - St. Petersburg, Florida
|
|
129,150
|
|
6/12/2019
|
|
Polo Grounds Mall
|
|
West Palm Beach, Florida
|
|
130,285
|
|
8/16/2019
|
|
Fairfield Shopping Center (1)
|
|
Virginia Beach, Virginia
|
|
231,829
|
|
11/14/2019
|
|
Berry Town Center
|
|
Orlando, Florida
|
|
99,441
|
|
12/19/2019
|
|
Hanover Shopping Center (1)
|
|
Wilmington, North Carolina
|
|
305,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,318,519
|
|
|
|
|
|
|
|
|
|
4/27/2018
|
|
Greensboro Village
|
|
Nashville, Tennessee
|
|
70,203
|
|
4/27/2018
|
|
Governors Towne Square
|
|
Atlanta, Georgia
|
|
68,658
|
|
6/26/2018
|
|
Neapolitan Way
|
|
Naples, Florida
|
|
137,580
|
|
6/29/2018
|
|
Conway Plaza
|
|
Orlando, Florida
|
|
117,705
|
|
7/6/2018
|
|
Brawley Commons
|
|
Charlotte, North Carolina
|
|
122,028
|
|
12/21/2018
|
|
Hollymead Town Center
|
|
Charlottesville, Virginia
|
|
158,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
674,981
|
|
|
|
|
|
|
|
|
|
(1) Property is owned through a consolidated joint venture.
|
|||||||
|
|
|
|
|
|
|
|
|
New Market Properties' acquisitions during the years ended December 31,
|
||||||
(In thousands, except amortization period data)
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
Land
|
|
$
|
77,612
|
|
|
$
|
40,793
|
|
Buildings and improvements
|
|
152,804
|
|
|
99,967
|
|
||
Tenant improvements
|
|
11,319
|
|
|
5,862
|
|
||
In-place leases
|
|
21,084
|
|
|
11,394
|
|
||
Above market leases
|
|
3,098
|
|
|
3,279
|
|
||
Leasing costs
|
|
7,216
|
|
|
3,855
|
|
||
Below market leases
|
|
(21,028
|
)
|
|
(4,934
|
)
|
||
Other assets
|
|
124
|
|
|
247
|
|
||
Security deposits, prepaid rents, and other
|
|
(869
|
)
|
|
(1,024
|
)
|
||
|
|
|
|
|
||||
Net assets acquired
|
|
$
|
251,360
|
|
|
$
|
159,439
|
|
|
|
|
|
|
||||
Cash paid
|
|
$
|
91,422
|
|
|
$
|
83,906
|
|
Mortgage debt
|
|
159,938
|
|
|
75,533
|
|
||
|
|
|
|
|
||||
Total consideration
|
|
$
|
251,360
|
|
|
$
|
159,439
|
|
|
|
|
|
|
||||
Year ended December 31, 2019:
|
|
|
|
|
||||
Revenue
|
|
$
|
11,401
|
|
|
$
|
14,650
|
|
Net income (loss)
|
|
$
|
(1,686
|
)
|
|
$
|
(1,333
|
)
|
|
|
|
|
|
||||
Year ended December 31, 2018:
|
|
|
|
|
||||
Revenue
|
|
$
|
—
|
|
|
$
|
5,670
|
|
Net income (loss)
|
|
$
|
—
|
|
|
$
|
(1,057
|
)
|
|
|
|
|
|
||||
Capitalized acquisition costs incurred by the Company
|
|
$
|
5,192
|
|
|
$
|
2,320
|
|
Capitalized acquisition costs paid to related party (included above)
|
|
$
|
2,367
|
|
|
$
|
1,631
|
|
Remaining amortization period of intangible
|
|
|
|
|
||||
assets and liabilities (years)
|
|
7.9
|
|
|
6.3
|
|
Acquisition date
|
|
Property
|
|
Location
|
|
Gross leasable area (square feet)
|
|
|
|
|
|
|
|
|
|
7/25/2019
|
|
CAPTRUST Tower
|
|
Raleigh, North Carolina
|
|
300,000
|
|
7/31/2019
|
|
251 Armour Drive
|
|
Atlanta, Georgia
|
|
35,000
|
|
12/20/2019
|
|
Morrocroft Center
|
|
Charlotte, North Carolina
|
|
291,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
626,000
|
|
|
|
|
|
|
|
|
|
1/29/2018
|
|
Armour Yards
|
|
Atlanta, Georgia
|
|
187,000
|
|
7/31/2018
|
|
150 Fayetteville
|
|
Raleigh, North Carolina
|
|
560,000
|
|
12/20/2018
|
|
Capitol Towers
|
|
Charlotte, North Carolina
|
|
479,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,226,000
|
|
|
|
Preferred Office Properties' acquisitions during the years ended December 31,
|
||||||
(In thousands, except amortization period data)
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
Land
|
|
$
|
22,654
|
|
|
$
|
36,274
|
|
Buildings and improvements
|
|
193,243
|
|
|
336,944
|
|
||
Tenant improvements
|
|
13,205
|
|
|
32,085
|
|
||
In-place leases
|
|
12,766
|
|
|
25,275
|
|
||
Above-market leases
|
|
1,760
|
|
|
4,900
|
|
||
Leasing costs
|
|
6,021
|
|
|
19,817
|
|
||
Below-market leases
|
|
(2,892
|
)
|
|
(10,626
|
)
|
||
Prepaid and other assets
|
|
56
|
|
|
1,588
|
|
||
Accrued taxes
|
|
(98
|
)
|
|
(17
|
)
|
||
Security deposits, prepaid rents, and other liabilities
|
|
(413
|
)
|
|
(12,241
|
)
|
||
|
|
|
|
|
||||
Net assets acquired
|
|
$
|
246,302
|
|
|
$
|
433,999
|
|
|
|
|
|
|
||||
Cash paid
|
|
$
|
93,652
|
|
|
$
|
152,949
|
|
Mortgage debt, net
|
|
82,650
|
|
|
281,050
|
|
||
Term Note
|
|
70,000
|
|
|
—
|
|
||
|
|
|
|
|
||||
Total consideration
|
|
$
|
246,302
|
|
|
$
|
433,999
|
|
|
|
|
|
|
||||
Year ended December 31, 2019:
|
|
|
|
|
||||
Revenue
|
|
$
|
5,530
|
|
|
$
|
41,391
|
|
Net income (loss)
|
|
$
|
(718
|
)
|
|
$
|
(1,205
|
)
|
|
|
|
|
|
||||
Year ended December 31, 2018:
|
|
|
|
|
||||
Revenue
|
|
$
|
—
|
|
|
$
|
12,327
|
|
Net income (loss)
|
|
$
|
—
|
|
|
$
|
(2,337
|
)
|
|
|
|
|
|
||||
Capitalized acquisition costs incurred by the Company
|
|
$
|
3,079
|
|
|
$
|
6,013
|
|
Acquisition costs paid to related party (included above)
|
|
$
|
2,570
|
|
|
$
|
4,483
|
|
Remaining amortization period of intangible
|
|
|
|
|
||||
assets and liabilities (years)
|
|
6.8
|
|
|
8.8
|
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Depreciation:
|
|
|
|
|
|
|
||||||
Buildings and improvements
|
|
$
|
99,137
|
|
|
$
|
78,691
|
|
|
$
|
55,803
|
|
Furniture, fixtures, and equipment
|
|
50,747
|
|
|
47,158
|
|
|
30,215
|
|
|||
|
|
149,884
|
|
|
125,849
|
|
|
86,018
|
|
|||
Amortization:
|
|
|
|
|
|
|
||||||
Acquired intangible assets
|
|
34,057
|
|
|
44,617
|
|
|
30,492
|
|
|||
Deferred leasing costs
|
|
933
|
|
|
519
|
|
|
201
|
|
|||
Website development costs
|
|
191
|
|
|
151
|
|
|
66
|
|
|||
Total depreciation and amortization
|
|
$
|
185,065
|
|
|
$
|
171,136
|
|
|
$
|
116,777
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Number of loans
|
|
27
|
|
|
29
|
|
||
Number of underlying properties in development
|
|
19
|
|
|
19
|
|
||
(In thousands)
|
|
|
|
|
||||
Drawn amount
|
|
$
|
352,582
|
|
|
$
|
336,329
|
|
Deferred loan origination fees
|
|
(1,476
|
)
|
|
(2,118
|
)
|
||
Allowance for loan losses
|
|
(1,624
|
)
|
|
—
|
|
||
Carrying value
|
|
$
|
349,482
|
|
|
$
|
334,211
|
|
|
|
|
|
|
||||
Unfunded loan commitments
|
|
$
|
61,718
|
|
|
$
|
164,913
|
|
Weighted average current interest, per annum (paid monthly)
|
|
8.48
|
%
|
|
8.47
|
%
|
||
Weighted average accrued interest, per annum
|
|
3.85
|
%
|
|
5.24
|
%
|
(In thousands)
|
|
Principal balance
|
|
Deferred loan origination fees
|
|
Loan loss allowance
|
|
Carrying value
|
||||||||
Balances as of December 31, 2018
|
|
$
|
336,329
|
|
|
$
|
(2,118
|
)
|
|
$
|
—
|
|
|
$
|
334,211
|
|
Loan fundings
|
|
98,418
|
|
|
—
|
|
|
—
|
|
|
98,418
|
|
||||
Loan repayments
|
|
(54,384
|
)
|
|
—
|
|
|
—
|
|
|
(54,384
|
)
|
||||
Loans settled with acquisitions
|
|
(27,781
|
)
|
|
—
|
|
|
—
|
|
|
(27,781
|
)
|
||||
Increase in loan loss allowance
|
|
—
|
|
|
—
|
|
|
(1,624
|
)
|
|
(1,624
|
)
|
||||
Loan origination fees collected
|
|
—
|
|
|
(783
|
)
|
|
—
|
|
|
(783
|
)
|
||||
Amortization of loan origination fees
|
|
—
|
|
|
1,425
|
|
|
—
|
|
|
1,425
|
|
||||
Balances as of December 31, 2019
|
|
$
|
352,582
|
|
|
$
|
(1,476
|
)
|
|
$
|
(1,624
|
)
|
|
$
|
349,482
|
|
Property type
|
|
Number of loans
|
|
Carrying value
|
|
Commitment amount
|
|
Percentage of portfolio
|
||||||
(In thousands)
|
|
|
|
|
|
|
||||||||
Multifamily communities
|
|
23
|
|
|
$
|
315,286
|
|
|
$
|
362,519
|
|
|
90
|
%
|
Student housing properties
|
|
2
|
|
|
16,898
|
|
|
19,730
|
|
|
5
|
%
|
||
New Market Properties
|
|
1
|
|
|
12,857
|
|
|
12,857
|
|
|
4
|
%
|
||
Preferred Office Properties
|
|
1
|
|
|
4,441
|
|
|
19,193
|
|
|
1
|
%
|
||
Balances as of December 31, 2019
|
|
27
|
|
|
$
|
349,482
|
|
|
$
|
414,299
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rating indicator
|
|
Principal balance
|
|
Accrued interest
|
|
Receivables for purchase option terminations
|
|
Allowance for loan losses
|
|
Total
|
||||||||||
A
|
|
$
|
346,466
|
|
|
$
|
24,547
|
|
|
$
|
6,100
|
|
|
$
|
—
|
|
|
$
|
377,113
|
|
B
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
C
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
D
|
|
6,116
|
|
|
1,208
|
|
|
—
|
|
|
(1,400
|
)
|
|
5,924
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$
|
352,582
|
|
|
$
|
25,755
|
|
|
$
|
6,100
|
|
|
$
|
(1,400
|
)
|
|
$
|
383,037
|
|
Interest income
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Real estate loans:
|
|
|
|
|
|
|
||||||
Current interest
|
|
$
|
30,985
|
|
|
$
|
31,368
|
|
|
$
|
32,570
|
|
Additional accrued interest
|
|
13,663
|
|
|
19,003
|
|
|
18,670
|
|
|||
Loan origination fee amortization
|
|
1,426
|
|
|
1,570
|
|
|
1,376
|
|
|||
Purchase option termination fee amortization
|
|
9,111
|
|
|
9,820
|
|
|
—
|
|
|||
Default interest
|
|
91
|
|
|
64
|
|
|
|
||||
|
|
|
|
|
|
|
||||||
Total real estate loan revenue
|
|
55,276
|
|
|
61,825
|
|
|
52,616
|
|
|||
Notes and lines of credit
|
|
5,430
|
|
|
3,784
|
|
|
4,286
|
|
|||
Bank and money market accounts
|
|
687
|
|
|
147
|
|
|
—
|
|
|||
Agency mortgage-backed securities
|
|
95
|
|
|
50
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
Interest income on loans and notes receivable
|
|
$
|
61,488
|
|
|
$
|
65,806
|
|
|
$
|
56,902
|
|
•
|
an offering of a maximum of 1,500,000 Units, with each Unit consisting of one share of Series A Redeemable Preferred Stock, par value $0.01 per share, and one Warrant to purchase up to 20 shares of Common Stock (the "$1.5 Billion Unit Offering");
|
•
|
an offering of up to $400 million of equity or debt securities (the "2019 Shelf Offering"), including an offering of up to $125 million of Common Stock from time to time in an "at the market" offering (the "2019 ATM Offering"); and
|
•
|
an offering of up to 1,000,000 Shares of Series A1 Redeemable Preferred Stock ("Series A1 Preferred Stock"), Series M1 Redeemable Preferred Stock ("Series M1 Preferred Stock"), or a combination of both (collectively the "Series A1/M1 Offering").
|
(In thousands)
|
|
|
|
|
|
Deferred Offering Costs
|
|
|
|
|
|||||||||||||||||||
Offering
|
|
Total offering
|
|
Gross proceeds as of December 31, 2019
|
|
Reclassified as reductions of stockholders' equity
|
|
Recorded as deferred assets
|
|
Total
|
|
Specifically identifiable offering costs (1)
|
|
Total offering costs
|
|||||||||||||||
$1.5 Billion Unit Offering
|
|
$
|
1,500,000
|
|
|
$
|
1,171,116
|
|
|
$
|
11,979
|
|
|
$
|
807
|
|
|
$
|
12,786
|
|
|
$
|
109,844
|
|
|
$
|
122,630
|
|
|
mShares Offering
|
|
500,000
|
|
(2
|
)
|
105,984
|
|
|
3,855
|
|
|
—
|
|
|
3,855
|
|
|
3,911
|
|
|
7,766
|
|
|||||||
Series A1/M1 Offering
|
|
1,000,000
|
|
(3
|
)
|
9,472
|
|
|
5
|
|
|
521
|
|
|
526
|
|
|
486
|
|
|
1,012
|
|
|||||||
2016 Shelf Offering
|
|
300,000
|
|
(4
|
)
|
98,080
|
|
|
2,062
|
|
|
—
|
|
|
2,062
|
|
|
3,001
|
|
|
5,063
|
|
|||||||
2019 Shelf Offering
|
|
400,000
|
|
(5
|
)
|
—
|
|
|
—
|
|
|
819
|
|
|
819
|
|
|
—
|
|
|
819
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
|
$
|
3,700,000
|
|
|
$
|
1,384,652
|
|
|
$
|
17,901
|
|
|
$
|
2,147
|
|
|
$
|
20,048
|
|
|
$
|
117,242
|
|
|
$
|
137,290
|
|
(In thousands)
|
|
|
|
Years ended December 31,
|
||||||||||
Type of Compensation
|
|
Basis of Compensation
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Acquisition fees
|
|
1.0% of the gross purchase price of real estate assets
|
|
$
|
7,203
|
|
|
$
|
10,699
|
|
|
$
|
6,131
|
|
Loan origination fees
|
|
1.0% of the maximum commitment of any real estate loan, note or line of credit receivable
|
|
783
|
|
|
2,166
|
|
|
1,331
|
|
|||
Loan coordination fees
|
|
0.6% of any assumed, new or supplemental debt incurred in connection with an acquired property
|
|
2,939
|
|
|
3,897
|
|
|
5,560
|
|
|||
Asset management fees
|
|
Monthly fee equal to one-twelfth of 0.50% of the total book value of assets, as adjusted
|
|
15,596
|
|
|
14,698
|
|
|
12,908
|
|
|||
Property management fees
|
|
Monthly fee up to 4% of the monthly gross revenues of the properties managed
|
|
10,274
|
|
|
8,934
|
|
|
6,382
|
|
|||
General and administrative expense fees
|
|
Monthly fee equal to 2% of the monthly gross revenues of the Company
|
|
6,177
|
|
|
6,022
|
|
|
5,238
|
|
|||
Construction management fees
|
|
Quarterly fee for property renovation and takeover projects
|
|
264
|
|
|
408
|
|
|
332
|
|
|||
Disposition fees
|
|
1% of the sale price of a real estate asset
|
|
282
|
|
|
1,710
|
|
|
—
|
|
|||
Contingent asset management fees / general and administrative fees
|
|
Recognized upon disposition of the property when exceeding the 7% IRR hurdle
|
|
11
|
|
|
671
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
$
|
43,529
|
|
|
$
|
49,205
|
|
|
$
|
37,882
|
|
(In thousands)
|
|
|
|
|
|
|
||||||
|
|
Years ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
$
|
18,054
|
|
|
$
|
16,276
|
|
|
$
|
12,329
|
|
|
|
Dividends and distributions declared
|
||||||
|
|
For the years ended December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
(In thousands)
|
|
|
|
|
||||
Series A Preferred Stock
|
|
$
|
108,950
|
|
|
$
|
84,841
|
|
mShares
|
|
4,807
|
|
|
1,900
|
|
||
Series A1 Preferred Stock
|
|
15
|
|
|
—
|
|
||
Common Stock
|
|
46,755
|
|
|
41,129
|
|
||
Class A OP Units
|
|
908
|
|
|
1,041
|
|
||
|
|
|
|
|
||||
Total
|
|
$
|
161,435
|
|
|
$
|
128,911
|
|
|
|
|
Years ended December 31,
|
|
Unamortized expense as of December 31,
|
||||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Class B Unit awards:
|
|
|
|
|
|
|
|
|
|||||||||
2016
|
|
$
|
2
|
|
|
$
|
271
|
|
|
$
|
312
|
|
|
$
|
—
|
|
|
2017
|
|
312
|
|
|
344
|
|
|
2,691
|
|
|
3
|
|
|||||
2018
|
|
277
|
|
|
551
|
|
|
—
|
|
|
287
|
|
|||||
Restricted stock grants:
|
|
|
|
|
|
|
|
|
|||||||||
2016
|
|
|
—
|
|
|
—
|
|
|
136
|
|
|
—
|
|
||||
2017
|
|
|
—
|
|
|
120
|
|
|
240
|
|
|
—
|
|
||||
2018
|
|
|
120
|
|
|
241
|
|
|
—
|
|
|
—
|
|
||||
2019
|
|
|
281
|
|
|
—
|
|
|
—
|
|
|
140
|
|
||||
Restricted stock units:
|
|
|
|
|
|
|
|
|
|||||||||
2017
|
|
|
69
|
|
|
76
|
|
|
91
|
|
|
—
|
|
||||
2018
|
|
|
74
|
|
|
100
|
|
|
—
|
|
|
86
|
|
||||
2019
|
|
|
88
|
|
|
—
|
|
|
—
|
|
|
174
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Total
|
|
|
$
|
1,223
|
|
|
$
|
1,703
|
|
|
3,470
|
|
|
$
|
690
|
|
Service year
|
|
Shares
|
|
Fair value per share
|
|
Total compensation cost (in thousands)
|
|||||
2017
|
|
24,408
|
|
|
$
|
14.75
|
|
|
$
|
360
|
|
2018
|
|
24,810
|
|
|
$
|
14.51
|
|
|
$
|
360
|
|
2019
|
|
26,446
|
|
|
$
|
15.88
|
|
|
$
|
420
|
|
|
|
Grant date
|
||||
|
|
1/2/2018
|
|
1/3/2017
|
||
|
|
|
|
|
||
Units granted
|
|
256,087
|
|
|
286,392
|
|
Units forfeited:
|
|
|
|
|
||
John A. Williams (1)
|
|
(38,284
|
)
|
|
—
|
|
Voluntary forfeiture by senior executives (2)
|
|
(128,258
|
)
|
|
—
|
|
Other
|
|
(22,722
|
)
|
|
(5,334
|
)
|
|
|
|
|
|
||
Total forfeitures
|
|
(189,264
|
)
|
|
(5,334
|
)
|
|
|
|
|
|
||
Units earned and converted into Class A Units
|
|
—
|
|
|
(254,730
|
)
|
|
|
|
|
|
||
Class B Units outstanding at December 31, 2019
|
|
66,823
|
|
|
26,328
|
|
|
|
|
|
|
||
Units unearned but vested
|
|
32,575
|
|
|
—
|
|
Units unearned and not yet vested
|
|
34,248
|
|
|
26,328
|
|
|
|
|
|
|
||
Class B Units outstanding at December 31, 2019
|
|
66,823
|
|
|
26,328
|
|
|
|
|
|
|
||
(1) Pro rata modification of award on April 16, 2018, the date of Mr. Williams' passing.
|
||||||
(2) Additional Class B OP units granted to senior executives other than Mr. Williams were voluntarily forfeited at the end of 2018.
|
Grant dates
|
|
1/2/2018
|
||
Stock price
|
|
$
|
20.19
|
|
Dividend yield
|
|
4.95
|
%
|
|
Expected volatility
|
|
25.70
|
%
|
|
Risk-free interest rate
|
|
2.71
|
%
|
|
|
|
|
||
Number of Units granted:
|
|
|
||
One year vesting period
|
|
171,988
|
|
|
Three year vesting period
|
|
84,099
|
|
|
|
|
256,087
|
|
|
|
|
|
||
Calculated fair value per Unit
|
|
$
|
16.66
|
|
|
|
|
||
Total fair value of Units
|
|
$
|
4,266,409
|
|
|
|
|
||
Target market threshold increase
|
|
$
|
5,660,580
|
|
Grant date
|
1/2/2019
|
|
|
1/2/2018
|
|
|
1/3/2017
|
|
|||
Service period
|
2019-2021
|
|
|
2018-2020
|
|
|
2017-2019
|
|
|||
|
|
|
|
|
|
||||||
RSU activity:
|
|
|
|
|
|
||||||
Granted
|
27,760
|
|
|
20,720
|
|
|
26,900
|
|
|||
Forfeited
|
(3,480
|
)
|
|
(5,080
|
)
|
|
(7,037
|
)
|
|||
Units earned and converted into common stock
|
—
|
|
|
—
|
|
|
(14,154
|
)
|
|||
|
|
|
|
|
|
||||||
RSUs outstanding at December 31, 2019
|
24,280
|
|
|
15,640
|
|
|
5,709
|
|
|||
|
|
|
|
|
|
||||||
RSUs unearned but vested
|
—
|
|
|
5,238
|
|
|
—
|
|
|||
RSUs unearned and not yet vested
|
24,280
|
|
|
10,402
|
|
|
5,709
|
|
|||
|
|
|
|
|
|
||||||
RSUs outstanding at December 31, 2019
|
24,280
|
|
|
15,640
|
|
|
5,709
|
|
|||
|
|
|
|
|
|
||||||
Fair value per RSU
|
$
|
10.77
|
|
|
$
|
16.66
|
|
|
$
|
11.92
|
|
Total fair value of RSU grant
|
$
|
298,975
|
|
|
$
|
345,195
|
|
|
$
|
320,648
|
|
Property
|
|
Date
|
|
Initial principal amount
(in thousands)
|
|
Fixed/Variable rate
|
|
Rate
|
|
Maturity date
|
|||
Hanover Center
|
|
12/19/2019
|
|
32,000
|
|
|
Fixed
|
|
3.62
|
%
|
|
12/19/2026
|
|
Berry Town Center
|
|
11/14/2019
|
|
12,025
|
|
|
Fixed
|
|
3.49
|
%
|
|
12/1/2034
|
|
Five Oaks at Westchase
|
|
10/17/2019
|
|
31,500
|
|
|
Fixed
|
|
3.27
|
%
|
|
11/1/2031
|
|
Fairfield Shopping Center
|
|
8/16/2019
|
|
19,750
|
|
|
Variable
|
|
1 month LIBOR + 205
|
|
|
8/16/2026
|
|
Artisan at Viera
|
|
8/8/2019
|
|
40,000
|
|
|
Fixed
|
|
3.93
|
%
|
|
9/1/2029
|
|
CAPTRUST Tower
|
|
7/25/2019
|
|
82,650
|
|
|
Fixed
|
|
3.61
|
%
|
|
8/1/2029
|
|
Disston Plaza
|
|
6/12/2019
|
|
18,038
|
|
|
Fixed
|
|
3.93
|
%
|
|
7/1/2034
|
|
Polo Grounds Mall
|
|
6/12/2019
|
|
13,325
|
|
|
Fixed
|
|
3.93
|
%
|
|
7/1/2034
|
|
Free State Shopping Center
|
|
5/28/2019
|
|
46,800
|
|
|
Fixed
|
|
3.99
|
%
|
|
6/1/2029
|
|
Haven49 (1)
|
|
3/27/2019
|
|
41,550
|
|
|
Variable
|
|
1 month LIBOR + 375
|
|
|
12/22/2019
|
|
Gayton Crossing
|
|
1/17/2019
|
|
18,000
|
|
|
Fixed
|
|
4.71
|
%
|
|
2/1/2029
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
$
|
355,638
|
|
|
|
|
|
|
|
Date
|
|
Property
|
|
Previous balance (millions)
|
|
Previous interest rate / spread over 1 month LIBOR
|
|
Loan refinancing costs expensed
|
|
New balance (millions)
|
|
New interest rate
|
|
Total deferred loan costs subsequent to refinancing
|
||||||||||
11/8/2019
|
|
Haven49
|
|
$
|
41.6
|
|
|
L + 375
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
N/A
|
|
|
$
|
—
|
|
10/1/2019
|
|
Kingwood Glen
|
|
10.9
|
|
|
3.48
|
%
|
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
||||
10/1/2019
|
|
Sweetgrass Corner
|
|
7.4
|
|
|
3.58
|
%
|
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
||||
9/17/2019
|
|
Spring Hill Plaza
|
|
9.1
|
|
|
3.36
|
%
|
|
—
|
|
|
8.2
|
|
|
3.72
|
%
|
|
195,000
|
|
||||
9/17/2019
|
|
Parkway Town Centre
|
|
6.6
|
|
|
3.36
|
%
|
|
—
|
|
|
8.1
|
|
|
3.72
|
%
|
|
195,000
|
|
||||
8/16/2019
|
|
Deltona Landings
|
|
6.5
|
|
|
3.48
|
%
|
|
5,000
|
|
|
6.3
|
|
|
4.18
|
%
|
|
205,000
|
|
||||
8/16/2019
|
|
Barclay Crossing
|
|
6.1
|
|
|
3.48
|
%
|
|
4,000
|
|
|
6.3
|
|
|
4.18
|
%
|
|
209,000
|
|
||||
8/16/2019
|
|
Parkway Center
|
|
4.3
|
|
|
3.48
|
%
|
|
3,000
|
|
|
4.6
|
|
|
4.18
|
%
|
|
148,000
|
|
||||
8/13/2019
|
|
Powder Springs
|
|
6.9
|
|
|
3.48
|
%
|
|
4,000
|
|
|
8.0
|
|
|
3.65
|
%
|
|
236,000
|
|
||||
7/29/2019
|
|
Citi Lakes
|
|
41.1
|
|
|
L + 217
|
|
|
155,000
|
|
|
41.3
|
|
|
3.66
|
%
|
|
668,000
|
|
||||
4/12/2019
|
|
Royal Lakes Marketplace
|
|
9.5
|
|
|
L + 250
|
|
|
52,000
|
|
|
9.7
|
|
|
4.29
|
%
|
|
287,000
|
|
||||
4/12/2019
|
|
Cherokee Plaza
|
|
24.5
|
|
|
L + 225
|
|
|
317,000
|
|
|
25.2
|
|
|
4.28
|
%
|
|
723,000
|
|
||||
2/28/2019
|
|
Lenox Village Town Center
|
|
29.2
|
|
|
3.82
|
%
|
|
17,000
|
|
|
39.3
|
|
|
4.34
|
%
|
|
1,153,000
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
$
|
203.7
|
|
|
|
|
$
|
557,000
|
|
|
$
|
157.0
|
|
|
|
|
$
|
4,019,000
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
12/17/2018
|
|
Village at Baldwin Park
|
|
$
|
77.8
|
|
|
L + 230
|
|
|
$
|
131,000
|
|
|
$
|
71.5
|
|
|
4.16
|
%
|
|
$
|
826,000
|
|
12/11/2018
|
|
McNeil Ranch
|
|
13.4
|
|
|
3.13
|
%
|
|
147,000
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
||||
10/31/2018
|
|
Sol
|
|
37.5
|
|
|
L + 210
|
|
|
158,000
|
|
|
36.2
|
|
|
4.71
|
%
|
|
230,000
|
|
||||
10/23/2018
|
|
Stoneridge Farms
|
|
25.6
|
|
|
3.18
|
%
|
|
233,000
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
||||
9/28/2018
|
|
Stone Rise
|
|
23.5
|
|
|
2.89
|
%
|
|
119,000
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
||||
3/29/2018
|
|
Sol
|
|
37.5
|
|
|
L + 200
|
|
|
41,000
|
|
|
37.5
|
|
|
L + 210
|
|
|
649,000
|
|
||||
3/20/2018
|
|
Lake Cameron
|
|
19.7
|
|
|
3.13
|
%
|
|
402,000
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
$
|
235.0
|
|
|
|
|
$
|
1,231,000
|
|
|
$
|
145.2
|
|
|
|
|
$
|
1,705,000
|
|
(In thousands)
|
|
|
|
|
|
|
||||
Fixed rate mortgage debt:
|
|
Principal balances due
|
|
Weighted-average interest rate
|
|
Weighted average remaining life (years)
|
||||
Multifamily communities
|
|
$
|
1,135,030
|
|
|
3.89
|
%
|
|
9.1
|
|
New Market Properties
|
|
573,940
|
|
|
3.95
|
%
|
|
8.1
|
|
|
Preferred Office Properties
|
|
565,254
|
|
|
4.22
|
%
|
|
13.5
|
|
|
Student housing properties
|
|
159,218
|
|
|
4.13
|
%
|
|
5.6
|
|
|
|
|
|
|
|
|
|
||||
Total fixed rate mortgage debt
|
|
2,433,442
|
|
|
4.00
|
%
|
|
9.6
|
|
|
|
|
|
|
|
|
|
||||
Variable rate mortgage debt:
|
|
|
|
|
|
|
||||
Multifamily communities
|
|
38,871
|
|
|
3.38
|
%
|
|
4.6
|
|
|
New Market Properties
|
|
47,150
|
|
|
4.32
|
%
|
|
3.8
|
|
|
Preferred Office Properties
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
Student housing properties
|
|
90,366
|
|
|
5.21
|
%
|
|
1.0
|
|
|
|
|
|
|
|
|
|
||||
Total variable rate mortgage debt
|
|
176,387
|
|
|
4.57
|
%
|
|
2.5
|
|
|
|
|
|
|
|
|
|
||||
Total mortgage debt:
|
|
|
|
|
|
|
||||
Multifamily communities
|
|
1,173,901
|
|
|
3.87
|
%
|
|
8.9
|
|
|
New Market Properties
|
|
621,090
|
|
|
3.98
|
%
|
|
7.8
|
|
|
Preferred Office Properties
|
|
565,254
|
|
|
4.22
|
%
|
|
13.5
|
|
|
Student housing properties
|
|
249,584
|
|
|
4.52
|
%
|
|
3.9
|
|
|
|
|
|
|
|
|
|
||||
Total principal amount
|
|
2,609,829
|
|
|
4.04
|
%
|
|
9.1
|
|
|
Deferred loan costs
|
|
(38,185
|
)
|
|
|
|
|
|||
Mark to market loan adjustment
|
|
(4,622
|
)
|
|
|
|
|
|||
Mortgage notes payable, net
|
|
$
|
2,567,022
|
|
|
|
|
|
Covenant (1)
|
|
Requirement
|
|
Result
|
Net worth
|
|
Minimum $1.9 billion
|
(2)
|
$1.9 billion
|
Debt yield
|
|
Minimum 8.25%
|
|
10.31%
|
Payout ratio
|
|
Maximum 95%
|
(3)
|
94.3%
|
Total leverage ratio
|
|
Maximum 65%
|
|
58.3%
|
Debt service coverage ratio
|
|
Minimum 1.50x
|
|
1.87x
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
|
|
|
|
||||||
Multifamily communities
|
|
$
|
47,697
|
|
|
$
|
45,662
|
|
|
$
|
35,402
|
|
New Market Properties
|
|
24,566
|
|
|
19,188
|
|
|
14,895
|
|
|||
Preferred Office Properties
|
|
22,711
|
|
|
12,789
|
|
|
7,006
|
|
|||
Student housing properties
|
|
14,758
|
|
|
11,217
|
|
|
3,085
|
|
|||
Interest paid to real estate loan participants
|
|
110
|
|
|
2,430
|
|
|
2,295
|
|
|||
|
|
|
|
|
|
|
||||||
Total
|
|
109,842
|
|
|
91,286
|
|
|
62,683
|
|
|||
|
|
|
|
|
|
|
||||||
Credit Facility and Acquisition Facility
|
|
2,122
|
|
|
4,278
|
|
|
4,785
|
|
|||
Interest Expense
|
|
$
|
111,964
|
|
|
$
|
95,564
|
|
|
$
|
67,468
|
|
Period
|
|
Future principal payments
(in thousands)
|
||
2020
|
|
$
|
146,328
|
|
2021
|
|
182,732
|
|
|
2022
|
|
222,774
|
|
|
2023
|
|
160,902
|
|
|
2024
|
|
358,597
|
|
|
Thereafter
|
|
1,608,496
|
|
|
|
|
|
||
Total
|
|
$
|
2,679,829
|
|
|
|
2019
|
|
2018
|
|
2017
|
|||
Preferred Stock:
|
|
|
|
|
|
|
|||
Ordinary income
|
|
44.7
|
%
|
|
51.4
|
%
|
|
64.0
|
%
|
Return of capital
|
|
53.1
|
%
|
|
—
|
%
|
|
27.5
|
%
|
Capital gains
|
|
2.2
|
%
|
|
48.6
|
%
|
|
8.5
|
%
|
|
|
|
|
|
|
|
|||
Common Stock:
|
|
|
|
|
|
|
|||
Ordinary income
|
|
—
|
%
|
|
27.0
|
%
|
|
—
|
%
|
Return of capital
|
|
100.0
|
%
|
|
47.4
|
%
|
|
100.0
|
%
|
Capital gains
|
|
—
|
%
|
|
25.6
|
%
|
|
—
|
%
|
For the year ending December 31:
|
|
Future Minimum Rents as of December 31, 2019
|
||||||||||
(In thousands)
|
|
New Market Properties
|
|
Preferred Office Properties
|
|
Total
|
||||||
|
|
|
|
|
|
|
||||||
2020
|
|
$
|
76,382
|
|
|
$
|
81,558
|
|
|
$
|
157,940
|
|
2021
|
|
68,290
|
|
|
80,263
|
|
|
148,553
|
|
|||
2022
|
|
57,629
|
|
|
78,421
|
|
|
136,050
|
|
|||
2023
|
|
48,206
|
|
|
76,897
|
|
|
125,103
|
|
|||
2024
|
|
37,235
|
|
|
73,239
|
|
|
110,474
|
|
|||
Thereafter
|
|
104,744
|
|
|
336,842
|
|
|
441,586
|
|
|||
Total
|
|
$
|
392,486
|
|
|
$
|
727,220
|
|
|
$
|
1,119,706
|
|
For the year ending December 31:
|
|
Future Minimum Rents as of December 31, 2018
|
||||||||||
(In thousands)
|
|
New Market Properties
|
|
Preferred Office Properties
|
|
Total
|
||||||
|
|
|
|
|
|
|
||||||
2020
|
|
$
|
51,949
|
|
|
$
|
61,704
|
|
|
$
|
113,653
|
|
2021
|
|
43,152
|
|
|
58,805
|
|
|
101,957
|
|
|||
2022
|
|
35,218
|
|
|
58,108
|
|
|
93,326
|
|
|||
2023
|
|
29,562
|
|
|
57,343
|
|
|
86,905
|
|
|||
Thereafter
|
|
79,747
|
|
|
298,469
|
|
|
378,216
|
|
|||
Total
|
|
$
|
297,771
|
|
|
$
|
590,993
|
|
|
$
|
888,764
|
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
|
|
|
|
||||||
Capitalized expenditures:
|
|
|
|
|
|
|
||||||
Multifamily communities
|
|
$
|
11,067
|
|
|
$
|
16,497
|
|
|
$
|
10,972
|
|
Student housing properties
|
|
3,444
|
|
|
3,382
|
|
|
799
|
|
|||
New Market Properties
|
|
8,913
|
|
|
6,901
|
|
|
3,494
|
|
|||
Total
|
|
$
|
23,424
|
|
|
$
|
26,780
|
|
|
$
|
15,265
|
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
Rental revenues:
|
|
|
|
|
|
|
||||||
Multifamily communities
|
|
$
|
166,388
|
|
|
$
|
157,437
|
|
|
$
|
127,942
|
|
Student housing properties
|
|
45,551
|
|
|
32,383
|
|
|
11,618
|
|
|||
New Market Properties
|
|
94,064
|
|
|
74,519
|
|
|
56,354
|
|
|||
Preferred Office Properties (1)
|
|
89,118
|
|
|
58,913
|
|
|
35,981
|
|
|||
Total rental revenues
|
|
395,121
|
|
|
323,252
|
|
|
231,895
|
|
|||
|
|
|
|
|
|
|
||||||
Other revenues:
|
|
|
|
|
|
|
||||||
Multifamily communities
|
|
5,836
|
|
|
5,605
|
|
|
4,120
|
|
|||
Student housing properties
|
|
1,097
|
|
|
646
|
|
|
233
|
|
|||
New Market Properties
|
|
2,325
|
|
|
2,724
|
|
|
2,296
|
|
|||
Preferred Office Properties
|
|
4,298
|
|
|
1,249
|
|
|
317
|
|
|||
Total other revenues
|
|
13,556
|
|
|
10,224
|
|
|
6,966
|
|
|||
|
|
|
|
|
|
|
||||||
Financing revenues
|
|
59,727
|
|
|
63,795
|
|
|
55,144
|
|
|||
Miscellaneous revenues
|
|
2,023
|
|
|
—
|
|
|
—
|
|
|||
Consolidated revenues
|
|
$
|
470,427
|
|
|
$
|
397,271
|
|
|
294,005
|
|
|
|
|
|
|
|
|
|
||||||
(1) Included in rental revenues for our Preferred Office Properties segment is the amortization of deferred revenue for tenant-funded leasehold improvements from a major tenant in our Three Ravinia and Westridge office buildings. As of December 31, 2019, the Company has deferred revenue in an aggregate amount of $47.0 million in connection with such improvements. The remaining balance to be recognized is approximately $39.7 million which is included in the deferred revenues line on the consolidated balance sheets at December 31, 2019. These total costs will be amortized over the lesser of the useful lives of the improvements or the individual lease terms. The Company recorded non-cash revenue of approximately $3.8 million and $2.7 million for the years ended December 31, 2019 and 2018, respectively.
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Segment net operating income (Segment NOI)
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
Multifamily communities
|
|
$
|
99,009
|
|
|
$
|
93,084
|
|
|
$
|
73,439
|
|
Student housing properties
|
|
24,533
|
|
|
16,151
|
|
|
6,100
|
|
|||
Financing
|
|
59,750
|
|
|
63,795
|
|
|
55,144
|
|
|||
New Market Properties
|
|
69,002
|
|
|
55,013
|
|
|
42,041
|
|
|||
Preferred Office Properties
|
|
66,021
|
|
|
41,800
|
|
|
25,987
|
|
|||
|
|
|
|
|
|
|
||||||
Consolidated segment net operating income
|
|
318,315
|
|
|
269,843
|
|
|
202,711
|
|
|||
|
|
|
|
|
|
|
||||||
Interest expense:
|
|
|
|
|
|
|
||||||
Multifamily communities
|
|
47,696
|
|
|
45,661
|
|
|
35,402
|
|
|||
Student housing properties
|
|
14,759
|
|
|
11,217
|
|
|
3,085
|
|
|||
New Market Properties
|
|
24,566
|
|
|
19,188
|
|
|
14,895
|
|
|||
Preferred Office Properties
|
|
22,869
|
|
|
12,789
|
|
|
7,006
|
|
|||
Financing
|
|
2,074
|
|
|
6,709
|
|
|
7,080
|
|
|||
Depreciation and amortization:
|
|
|
|
|
|
|
||||||
Multifamily communities
|
|
77,384
|
|
|
80,927
|
|
|
64,869
|
|
|||
Student housing properties
|
|
22,007
|
|
|
25,179
|
|
|
8,348
|
|
|||
New Market Properties
|
|
44,786
|
|
|
39,269
|
|
|
30,088
|
|
|||
Preferred Office Properties
|
|
40,888
|
|
|
25,761
|
|
|
13,472
|
|
|||
Professional fees
|
|
6,157
|
|
|
2,480
|
|
|
2,568
|
|
|||
Management fees, net of forfeitures
|
|
21,752
|
|
|
20,885
|
|
|
18,497
|
|
|||
Loan loss allowance
|
|
2,038
|
|
|
2,533
|
|
|
—
|
|
|||
Equity compensation to directors and executives
|
|
1,223
|
|
|
1,703
|
|
|
3,470
|
|
|||
Gain on land condemnation
|
|
(207
|
)
|
|
—
|
|
|
—
|
|
|||
Gain on sale of real estate
|
|
—
|
|
|
(69,643
|
)
|
|
(37,635
|
)
|
|||
Gain on non-cash net assets of consolidated VIEs
|
|
(1,831
|
)
|
|
(320
|
)
|
|
—
|
|
|||
Gain loss on sale of real estate loan investment
|
|
(747
|
)
|
|
—
|
|
|
—
|
|
|||
Loss on extinguishment of debt
|
|
84
|
|
|
—
|
|
|
888
|
|
|||
Gain on trading investment, net
|
|
(1,567
|
)
|
|
(62
|
)
|
|
—
|
|
|||
Other
|
|
1,842
|
|
|
1,029
|
|
|
2,011
|
|
|||
|
|
|
|
|
|
|
||||||
Net income (loss)
|
|
$
|
(7,458
|
)
|
|
$
|
44,538
|
|
|
$
|
28,667
|
|
|
|
|
Years ended December 31,
|
||||||||||
|
(In thousands, except per-share figures)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Numerator:
|
|
|
|
|
|
|
|||||||
|
Operating income before gains on sales of real estate and trading investment
|
|
$
|
100,238
|
|
|
$
|
70,077
|
|
|
$
|
59,388
|
|
|
Gains on sales of real estate and trading investment
|
|
1,567
|
|
|
69,705
|
|
|
37,635
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Operating income
|
|
101,805
|
|
|
139,782
|
|
|
97,023
|
|
|||
|
Interest expense
|
|
111,964
|
|
|
95,564
|
|
|
67,468
|
|
|||
|
Change in fair value of net assets of consolidated VIEs from mortgage-backed pools
|
|
1,831
|
|
|
320
|
|
|
—
|
|
|||
|
Less: loss on extinguishment of debt
|
|
(84
|
)
|
|
—
|
|
|
(888
|
)
|
|||
|
Gains on sale of real estate loan investment and land condemnation
|
|
954
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Net (loss) income
|
|
(7,458
|
)
|
|
44,538
|
|
|
28,667
|
|
|||
|
Consolidated net loss (income) attributable to non-controlling interests
|
|
214
|
|
|
(1,071
|
)
|
|
(986
|
)
|
|||
|
|
|
|
|
|
|
|
||||||
|
Net (loss) income attributable to the Company
|
|
(7,244
|
)
|
|
43,467
|
|
|
27,681
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Dividends declared to preferred stockholders
|
|
(113,772
|
)
|
|
(86,741
|
)
|
|
(63,651
|
)
|
|||
|
Earnings attributable to unvested restricted stock
|
|
(17
|
)
|
|
(16
|
)
|
|
(15
|
)
|
|||
|
|
|
|
|
|
|
|
||||||
|
Net loss attributable to common stockholders
|
|
$
|
(121,033
|
)
|
|
$
|
(43,290
|
)
|
|
$
|
(35,985
|
)
|
|
|
|
|
|
|
|
|
||||||
Denominator:
|
|
|
|
|
|
|
|||||||
|
Weighted average number of shares of Common Stock - basic
|
|
44,265
|
|
|
40,032
|
|
|
31,926
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Effect of dilutive securities: (D)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Weighted average number of shares of Common Stock - basic and diluted
|
|
44,265
|
|
|
40,032
|
|
|
31,926
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Net loss per share of Common Stock attributable to
|
|
|
|
|
|
|
||||||
|
common stockholders, basic and diluted
|
|
$
|
(2.73
|
)
|
|
$
|
(1.08
|
)
|
|
$
|
(1.13
|
)
|
(in thousands, except per-share data)
|
Three months ended:
|
||||||||||||||
|
3/31/2019
|
|
6/30/2019
|
|
9/30/2019
|
|
12/31/2019
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
111,506
|
|
|
$
|
113,852
|
|
|
$
|
120,203
|
|
|
$
|
124,866
|
|
Operating income before gain/(loss) on sales of real estate and trading investments
|
$
|
24,348
|
|
|
$
|
24,655
|
|
|
$
|
26,086
|
|
|
$
|
25,149
|
|
Net income (loss)
|
$
|
(2,280
|
)
|
|
$
|
(1,677
|
)
|
|
$
|
(2,137
|
)
|
|
$
|
(1,364
|
)
|
Net income (loss) attributable to common stockholders
|
$
|
(28,313
|
)
|
|
$
|
(28,655
|
)
|
|
$
|
(31,529
|
)
|
|
$
|
(32,536
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share of Common Stock
|
|
|
|
|
|
|
|
||||||||
available to Common stockholders:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.66
|
)
|
|
$
|
(0.66
|
)
|
|
$
|
(0.71
|
)
|
|
$
|
(0.71
|
)
|
Diluted
|
$
|
(0.66
|
)
|
|
$
|
(0.66
|
)
|
|
$
|
(0.71
|
)
|
|
$
|
(0.71
|
)
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
42,680
|
|
|
43,703
|
|
|
44,703
|
|
|
45,934
|
|
||||
Diluted
|
42,680
|
|
|
43,703
|
|
|
44,703
|
|
|
45,934
|
|
(in thousands, except per-share data)
|
Three months ended:
|
||||||||||||||
|
3/31/2018
|
|
6/30/2018
|
|
9/30/2018
|
|
12/31/2018
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
90,370
|
|
|
$
|
96,389
|
|
|
$
|
104,232
|
|
|
$
|
106,280
|
|
Operating income before gain/(loss) on sales of real estate and trading investments
|
$
|
14,877
|
|
|
$
|
17,013
|
|
|
$
|
15,275
|
|
|
$
|
22,912
|
|
Net (loss) income
|
$
|
14,263
|
|
|
$
|
(5,278
|
)
|
|
$
|
8,354
|
|
|
$
|
27,199
|
|
Net (loss) income attributable to common stockholders
|
$
|
(5,636
|
)
|
|
$
|
(26,068
|
)
|
|
$
|
(14,227
|
)
|
|
$
|
2,641
|
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per share of Common Stock
|
|
|
|
|
|
|
|
||||||||
available to Common stockholders:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.14
|
)
|
|
$
|
0.66
|
|
|
$
|
0.35
|
|
|
$
|
0.06
|
|
Diluted
|
$
|
(0.14
|
)
|
|
$
|
0.66
|
|
|
$
|
0.35
|
|
|
$
|
0.06
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
39,098
|
|
|
39,383
|
|
|
40,300
|
|
|
41,320
|
|
||||
Diluted
|
39,098
|
|
|
39,383
|
|
|
40,300
|
|
|
42,046
|
|
|
As of December 31, 2019
|
||||||||||||||||||
|
Carrying value
|
|
|
|
Fair value measurements
using fair value hierarchy
|
||||||||||||||
(In thousands)
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate loans
|
$
|
349,482
|
|
|
$
|
382,373
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
382,373
|
|
Notes receivable and line of credit receivable
|
41,917
|
|
|
41,917
|
|
|
—
|
|
|
—
|
|
|
41,917
|
|
|||||
|
$
|
391,399
|
|
|
$
|
424,290
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
424,290
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage notes payable
|
$
|
2,609,829
|
|
|
$
|
2,659,242
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,659,242
|
|
Revolving line of credit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Term note payable
|
70,000
|
|
|
70,000
|
|
|
—
|
|
|
—
|
|
|
70,000
|
|
|||||
|
$
|
2,679,829
|
|
|
$
|
2,729,242
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,729,242
|
|
|
As of December 31, 2018
|
||||||||||||||||||
|
Carrying value
|
|
|
|
Fair value measurements
using fair value hierarchy
|
||||||||||||||
(In thousands)
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate loans (1)
|
$
|
334,211
|
|
|
$
|
366,328
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
366,328
|
|
Notes receivable and line of credit receivable
|
47,307
|
|
|
47,307
|
|
|
—
|
|
|
—
|
|
|
47,307
|
|
|||||
|
$
|
381,518
|
|
|
$
|
413,635
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
413,635
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage notes payable
|
$
|
2,339,752
|
|
|
2,313,405
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,313,405
|
|
|
Revolving credit facility
|
57,000
|
|
|
57,000
|
|
|
—
|
|
|
—
|
|
|
57,000
|
|
|||||
Loan participation obligations
|
5,181
|
|
|
5,181
|
|
|
—
|
|
|
—
|
|
|
5,181
|
|
|||||
|
$
|
2,401,933
|
|
|
$
|
2,375,586
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,375,586
|
|
|
Assets
|
|
Liabilities
|
|
|
||||||
(In thousands)
|
Multifamily mortgage loans held in VIEs at fair value
|
|
VIE liabilities, at fair value
|
|
Net
|
||||||
Balance as of December 31, 2018
|
$
|
269,946
|
|
|
$
|
264,886
|
|
|
$
|
5,060
|
|
Initial consolidation of ML-05 trust:
|
289,233
|
|
|
270,670
|
|
|
18,563
|
|
|||
Gains (losses) included in net income due to change in fair value of net assets of VIE:
|
52,216
|
|
|
49,721
|
|
|
2,495
|
|
|||
Repayments of underlying mortgage principal amounts and repayments to Class A holders:
|
(6,570
|
)
|
|
(6,570
|
)
|
|
—
|
|
|||
Deconsolidation upon sale of ML-04 and ML-05 trusts:
|
(604,825
|
)
|
|
(578,707
|
)
|
|
(26,118
|
)
|
|||
Balance as of December 31, 2019
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Years ended December 31,
|
|||||||||
(In thousands)
|
|
2019
|
|
2018
|
2017
|
||||||
|
|
|
|
|
|
||||||
Interest earned
|
|
$
|
903
|
|
|
$
|
—
|
|
$
|
—
|
|
Unrealized gain
|
|
—
|
|
|
320
|
|
—
|
|
|||
Realized gain
|
|
2,495
|
|
|
—
|
|
—
|
|
|||
Change in fair value of net assets of consolidated VIEs from mortgage-backed pools and gain on sales of trading investments
|
|
$
|
3,398
|
|
|
$
|
320
|
|
$
|
—
|
|
|
December 31, 2018
|
||||||||||||||||||
|
Carrying value
|
|
|
|
Fair value measurements
using fair value hierarchy
|
||||||||||||||
(In thousands)
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
VIE assets from mortgage-backed pools
|
$
|
269,946
|
|
|
$
|
269,946
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
269,946
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
VIE liabilities from mortgage-backed pools
|
$
|
264,886
|
|
|
$
|
264,886
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
264,886
|
|
Item 16.
|
Form 10-K Summary
|
Schedule III
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
Preferred Apartment Communities, Inc.
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
Real Estate Investments and Accumulated Depreciation
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
December 31, 2019
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
(Dollars in thousands)
|
|
|
Initial Costs
|
|
|
|
Gross Amount at Which Carried at Close of Period
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Property name
|
|
Location (MSA)
|
|
Related Encum-brances
|
|
Land
|
|
Building and Improvements
|
|
Costs Capitalized
Subsequent to Acquisition
|
|
Land
|
|
Building and Improvements
|
|
Construction in Progress
|
|
Total (1)
|
|
Accumulated Depreciation
|
|
Year Constr-ucted/Renova-ted
|
|
Date Acquired
|
|
Deprec-iable Lives - Years
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Summit Crossing
|
|
Atlanta, GA
|
|
$37,651
|
|
$3,450
|
|
$27,705
|
|
$2,104
|
|
$3,450
|
|
$29,775
|
|
$34
|
|
$33,259
|
|
$(10,013)
|
|
2007
|
|
4/21/2011
|
|
5 - 40
|
||||||||||||||||||
|
Summit Crossing II
|
|
Atlanta, GA
|
|
13,221
|
|
3,220
|
|
15,852
|
|
465
|
|
3,220
|
|
16,302
|
|
15
|
|
19,537
|
|
(4,472)
|
|
2013
|
|
12/31/2013
|
|
5 - 40
|
||||||||||||||||||
|
Vineyards
|
|
Houston, TX
|
|
33,382
|
|
5,456
|
|
46,201
|
|
1,936
|
|
5,456
|
|
48,137
|
|
—
|
|
53,593
|
|
(9,768)
|
|
2003
|
|
9/26/2014
|
|
5 - 35
|
||||||||||||||||||
|
Avenues at Cypress
|
|
Houston, TX
|
|
20,704
|
|
3,242
|
|
30,093
|
|
598
|
|
3,242
|
|
30,691
|
|
—
|
|
33,933
|
|
(7,415)
|
|
2014
|
|
2/13/2015
|
|
5 - 40
|
||||||||||||||||||
|
Avenues at Northpointe
|
|
Houston, TX
|
|
26,313
|
|
3,921
|
|
37,203
|
|
805
|
|
3,921
|
|
38,008
|
|
—
|
|
41,929
|
|
(8,905)
|
|
2013
|
|
2/13/2015
|
|
5 - 40
|
||||||||||||||||||
|
Venue at Lakewood Ranch
|
|
Sarasota, FL
|
|
28,076
|
|
3,791
|
|
42,950
|
|
716
|
|
3,791
|
|
43,648
|
|
18
|
|
47,457
|
|
(8,797)
|
|
2015
|
|
5/21/2015
|
|
5 - 40
|
||||||||||||||||||
|
Aster at Lely Resort
|
|
Naples, FL
|
|
31,094
|
|
7,675
|
|
43,794
|
|
1,038
|
|
7,675
|
|
44,752
|
|
80
|
|
52,507
|
|
(9,437)
|
|
2015
|
|
6/24/2015
|
|
5 - 40
|
||||||||||||||||||
|
CityPark View
|
|
Charlotte, NC
|
|
20,089
|
|
3,559
|
|
28,360
|
|
389
|
|
3,559
|
|
28,748
|
|
1
|
|
32,308
|
|
(6,480)
|
|
2014
|
|
6/30/2015
|
|
5 - 40
|
||||||||||||||||||
|
Avenues at Creekside
|
|
San Antonio, TX
|
|
38,871
|
|
5,984
|
|
48,989
|
|
1,435
|
|
5,984
|
|
50,424
|
|
—
|
|
56,408
|
|
(10,603)
|
|
2013
|
|
7/31/2015
|
|
5 - 40
|
||||||||||||||||||
|
Citi Lakes
|
|
Orlando, FL
|
|
41,079
|
|
5,558
|
|
56,828
|
|
1,122
|
|
5,558
|
|
57,828
|
|
122
|
|
63,508
|
|
(11,192)
|
|
2014
|
|
9/3/2015
|
|
5 - 40
|
||||||||||||||||||
|
Stone Creek
|
|
Houston, TX
|
|
19,800
|
|
2,211
|
|
22,916
|
|
85
|
|
2,211
|
|
23,001
|
|
—
|
|
25,212
|
|
(3,758)
|
|
2009
|
|
11/12/2015
|
|
5 - 40
|
||||||||||||||||||
|
Regent at Lenox
|
|
Nashville, TN
|
|
—
|
|
301
|
|
3,493
|
|
58
|
|
301
|
|
3,551
|
|
—
|
|
3,852
|
|
(600)
|
|
2009
|
|
12/21/2015
|
|
5 - 40
|
||||||||||||||||||
|
Retreat at Lenox
|
|
Nashville, TN
|
|
17,114
|
|
2,965
|
|
24,211
|
|
181
|
|
2,860
|
|
24,492
|
|
5
|
|
27,357
|
|
(4,473)
|
|
2015
|
|
12/21/2015
|
|
5 - 40
|
||||||||||||||||||
|
Lenox Village Town Center
|
|
Nashville, TN
|
|
38,813
|
|
4,612
|
|
39,911
|
|
1,353
|
|
4,355
|
|
41,509
|
|
12
|
|
45,876
|
|
(7,054)
|
|
2009
|
|
12/21/2015
|
|
5 - 40
|
||||||||||||||||||
|
Village at Baldwin Park
|
|
Orlando, FL
|
|
70,607
|
|
17,403
|
|
90,464
|
|
7,001
|
|
17,403
|
|
95,796
|
|
1,669
|
|
114,868
|
|
(13,914)
|
|
2008
|
|
1/5/2016
|
|
5 - 37
|
||||||||||||||||||
|
Crosstown Walk
|
|
Tampa, FL
|
|
30,246
|
|
5,178
|
|
39,332
|
|
564
|
|
5,178
|
|
39,896
|
|
—
|
|
45,074
|
|
(7,525)
|
|
2014
|
|
1/15/2016
|
|
5 - 49
|
||||||||||||||||||
|
Overton Rise
|
|
Atlanta, GA
|
|
38,428
|
|
8,511
|
|
50,996
|
|
684
|
|
8,511
|
|
51,680
|
|
—
|
|
60,191
|
|
(7,524)
|
|
2015
|
|
2/1/2016
|
|
5 - 49
|
||||||||||||||||||
|
525 Avalon Park
|
|
Orlando, FL
|
|
64,519
|
|
7,410
|
|
82,349
|
|
3,308
|
|
7,410
|
|
85,341
|
|
316
|
|
93,067
|
|
(13,002)
|
|
2008
|
|
5/31/2016
|
|
5 - 45
|
||||||||||||||||||
|
City Vista
|
|
Pittsburgh, PA
|
|
33,674
|
|
4,082
|
|
41,486
|
|
292
|
|
4,082
|
|
41,709
|
|
69
|
|
45,860
|
|
(7,105)
|
|
2014
|
|
7/1/2016
|
|
5 - 49
|
||||||||||||||||||
|
Sorrel
|
|
Jacksonville, FL
|
|
31,449
|
|
4,412
|
|
42,217
|
|
895
|
|
4,412
|
|
43,112
|
|
—
|
|
47,524
|
|
(7,060)
|
|
2015
|
|
8/24/2016
|
|
5 - 48
|
||||||||||||||||||
|
Citrus Village
|
|
Tampa, FL
|
|
28,796
|
|
4,809
|
|
40,481
|
|
1,465
|
|
4,809
|
|
41,873
|
|
73
|
|
46,755
|
|
(6,017)
|
|
2011
|
|
03/03/17
|
|
5 - 44
|
|
(Dollars in thousands)
|
|
|
Initial Costs
|
|
|
|
Gross Amount at Which Carried at Close of Period
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Property name
|
|
Location (MSA)
|
|
Related Encum-brances
|
|
Land
|
|
Building and Improvements
|
|
Costs Capitalized
Subsequent to Acquisition
|
|
Land
|
|
Building and Improvements
|
|
Construction in Progress
|
|
Total (1)
|
|
Accumulated Depreciation
|
|
Year Constr-ucted/Renova-ted
|
|
Date Acquired
|
|
Deprec-iable Lives - Years
|
||||||||||||||||||
|
Retreat at Greystone
|
|
Birmingham, AL
|
|
34,053
|
|
4,077
|
|
44,462
|
|
779
|
|
4,077
|
|
45,241
|
|
—
|
|
49,318
|
|
$(7,664)
|
|
2015
|
|
03/24/17
|
|
5 - 49
|
||||||||||||||||||
|
Founder's Village
|
|
Williamsburg, VA
|
|
30,202
|
|
5,315
|
|
38,761
|
|
791
|
|
5,315
|
|
39,540
|
|
12
|
|
44,867
|
|
(5,292)
|
|
2014
|
|
03/31/17
|
|
5 - 47
|
||||||||||||||||||
|
Claiborne Crossing
|
|
Louisville, KY
|
|
25,948
|
|
2,147
|
|
37,579
|
|
1,275
|
|
2,147
|
|
38,854
|
|
—
|
|
41,001
|
|
(7,987)
|
|
2014
|
|
04/26/17
|
|
5 - 47
|
||||||||||||||||||
|
Luxe at Lakewood Ranch
|
|
Sarasota, FL
|
|
37,662
|
|
4,852
|
|
51,033
|
|
496
|
|
4,852
|
|
51,529
|
|
—
|
|
56,381
|
|
(5,992)
|
|
2016
|
|
07/26/17
|
|
5 - 48
|
||||||||||||||||||
|
Adara Overland Park
|
|
Kansas City, KS
|
|
30,624
|
|
2,854
|
|
42,030
|
|
372
|
|
2,854
|
|
42,402
|
|
—
|
|
45,256
|
|
(6,917)
|
|
2016
|
|
09/27/17
|
|
5 - 49
|
||||||||||||||||||
|
Reserve at Summit Crossing
|
|
Atlanta, GA
|
|
19,276
|
|
4,375
|
|
25,939
|
|
324
|
|
4,375
|
|
26,263
|
|
—
|
|
30,638
|
|
(3,411)
|
|
2016
|
|
09/29/17
|
|
5 - 48
|
||||||||||||||||||
|
Aldridge at Town Village
|
|
Atlanta, GA
|
|
36,569
|
|
7,122
|
|
45,418
|
|
381
|
|
7,122
|
|
45,799
|
|
—
|
|
52,921
|
|
(6,900)
|
|
2016
|
|
09/29/17
|
|
5 - 49
|
||||||||||||||||||
|
Overlook at Crosstown Walk
|
|
Tampa, FL
|
|
21,450
|
|
3,309
|
|
28,014
|
|
168
|
|
3,309
|
|
28,182
|
|
—
|
|
31,491
|
|
(3,332)
|
|
2016
|
|
11/21/17
|
|
5 - 48
|
||||||||||||||||||
|
Colony at Centerpointe
|
|
Richmond, VA
|
|
32,120
|
|
7,259
|
|
38,199
|
|
986
|
|
7,259
|
|
39,185
|
|
—
|
|
46,444
|
|
(4,653)
|
|
2016
|
|
12/20/17
|
|
5 - 48
|
||||||||||||||||||
|
Lux at Sorrel
|
|
Jacksonville, FL
|
|
30,474
|
|
5,332
|
|
42,531
|
|
559
|
|
5,332
|
|
43,090
|
|
—
|
|
48,422
|
|
(4,593)
|
|
2017
|
|
1/9/2018
|
|
5 - 49
|
||||||||||||||||||
|
Green Park
|
|
Atlanta, GA
|
|
38,525
|
|
7,478
|
|
49,211
|
|
378
|
|
7,478
|
|
49,589
|
|
—
|
|
57,067
|
|
(6,676)
|
|
2017
|
|
2/28/2018
|
|
5 - 48
|
||||||||||||||||||
|
Lodge at Hidden River
|
|
Tampa, FL
|
|
40,903
|
|
5,600
|
|
52,930
|
|
282
|
|
5,600
|
|
53,209
|
|
3
|
|
58,812
|
|
(3,398)
|
|
2017
|
|
9/27/2018
|
|
5 - 48
|
||||||||||||||||||
|
Vestavia Reserve
|
|
Birmingham, AL
|
|
37,130
|
|
4,140
|
|
54,206
|
|
615
|
|
4,140
|
|
54,807
|
|
14
|
|
58,961
|
|
(3,266)
|
|
2016
|
|
11/9/2018
|
|
5 - 48
|
||||||||||||||||||
|
CityPark View South
|
|
Charlotte, NC
|
|
23,767
|
|
5,816
|
|
27,528
|
|
321
|
|
5,816
|
|
27,840
|
|
9
|
|
33,665
|
|
(1,876)
|
|
2017
|
|
11/15/2018
|
|
5 - 49
|
||||||||||||||||||
|
Artisan at Viera
|
|
Melbourne, FL
|
|
39,824
|
|
4,839
|
|
58,791
|
|
161
|
|
4,839
|
|
58,815
|
|
137
|
|
63,791
|
|
(1,101)
|
|
2018
|
|
8/8/2019
|
|
5 - 50
|
||||||||||||||||||
|
Five Oaks at Westchase
|
|
Tampa, FL
|
|
31,448
|
|
4,425
|
|
48,113
|
|
194
|
|
4,425
|
|
48,128
|
|
179
|
|
52,732
|
|
(655)
|
|
2019
|
|
9/18/2019
|
|
5 - 50
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
1,173,901
|
|
|
186,690
|
|
|
1,540,576
|
|
|
34,576
|
|
|
186,328
|
|
|
1,572,746
|
|
|
2,768
|
|
|
1,761,842
|
|
|
(238,827
|
)
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
Initial Costs
|
|
|
|
Gross Amount at Which Carried at Close of Period
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Property name
|
|
Location (MSA)
|
|
Related Encum-brances
|
|
Land
|
|
Building and Improvements
|
|
Costs Capitalized
Subsequent to Acquisition
|
|
Land
|
|
Building and Improvements
|
|
Construction in Progress
|
|
Total (1)
|
|
Accumulated Depreciation
|
|
Year Constr-ucted/Renova-ted
|
|
Date Acquired
|
|
Deprec-iable Lives - Years
|
||||||||||||||||||
|
Woodstock Crossing
|
|
Atlanta, GA
|
|
2,877
|
|
1,751
|
|
3,800
|
|
657
|
|
1,751
|
|
4,457
|
|
—
|
|
6,208
|
|
(1,145)
|
|
1994
|
|
2/12/2014
|
|
5 - 30
|
||||||||||||||||||
|
Spring Hill Plaza
|
|
Nashville, TN
|
|
8,167
|
|
4,376
|
|
8,104
|
|
139
|
|
4,376
|
|
8,238
|
|
5
|
|
12,619
|
|
(2,226)
|
|
2005
|
|
9/5/2014
|
|
5 - 40
|
||||||||||||||||||
|
Parkway Town Centre
|
|
Nashville, TN
|
|
8,067
|
|
3,054
|
|
6,694
|
|
577
|
|
3,054
|
|
7,271
|
|
—
|
|
10,325
|
|
(1,470)
|
|
2005
|
|
9/5/2014
|
|
5 - 40
|
||||||||||||||||||
|
Barclay Crossing
|
|
Tampa, FL
|
|
6,233
|
|
2,856
|
|
7,572
|
|
248
|
|
2,856
|
|
7,820
|
|
—
|
|
10,676
|
|
(1,580)
|
|
1998
|
|
9/30/2014
|
|
5 - 30
|
||||||||||||||||||
|
Deltona Landings
|
|
Orlando, FL
|
|
6,289
|
|
2,256
|
|
8,344
|
|
330
|
|
2,256
|
|
8,674
|
|
—
|
|
10,930
|
|
(1,750)
|
|
1999
|
|
9/30/2014
|
|
5 - 30
|
||||||||||||||||||
|
Kingwood Glen
|
|
Houston, TX
|
|
—
|
|
5,021
|
|
12,930
|
|
664
|
|
5,021
|
|
13,480
|
|
114
|
|
18,615
|
|
(2,764)
|
|
1998
|
|
9/30/2014
|
|
5 - 30
|
||||||||||||||||||
|
Parkway Centre
|
|
Columbus, GA
|
|
4,530
|
|
2,071
|
|
4,516
|
|
325
|
|
2,071
|
|
4,837
|
|
4
|
|
6,912
|
|
(1,039)
|
|
1999
|
|
9/30/2014
|
|
5 - 30
|
||||||||||||||||||
|
Powder Springs
|
|
Atlanta, GA
|
|
7,951
|
|
1,832
|
|
8,246
|
|
255
|
|
1,832
|
|
8,501
|
|
—
|
|
10,333
|
|
(1,835)
|
|
1999
|
|
9/30/2014
|
|
5 - 30
|
||||||||||||||||||
|
Sweetgrass Corner
|
|
Charleston, SC
|
|
—
|
|
3,076
|
|
12,670
|
|
142
|
|
3,076
|
|
12,808
|
|
4
|
|
15,888
|
|
(2,616)
|
|
1999
|
|
9/30/2014
|
|
5 - 30
|
||||||||||||||||||
|
The Market at Salem Cove
|
|
Nashville, TN
|
|
9,075
|
|
2,427
|
|
10,272
|
|
171
|
|
2,427
|
|
10,443
|
|
—
|
|
12,870
|
|
(1,767)
|
|
2010
|
|
10/6/2014
|
|
5 - 40
|
||||||||||||||||||
|
Independence Square
|
|
Dallas, TX
|
|
11,455
|
|
4,115
|
|
13,690
|
|
1,933
|
|
4,115
|
|
15,618
|
|
5
|
|
19,738
|
|
(2,997)
|
|
1977
|
|
7/1/2015
|
|
5 - 30
|
||||||||||||||||||
|
Royal Lakes Marketplace
|
|
Atlanta, GA
|
|
9,572
|
|
4,874
|
|
10,439
|
|
479
|
|
4,924
|
|
10,861
|
|
7
|
|
15,792
|
|
(1,959)
|
|
2008
|
|
9/4/2015
|
|
5 - 30
|
||||||||||||||||||
|
Summit Point
|
|
Atlanta, GA
|
|
11,494
|
|
7,064
|
|
11,430
|
|
426
|
|
7,064
|
|
11,849
|
|
7
|
|
18,920
|
|
(2,181)
|
|
2004
|
|
10/30/2015
|
|
5 - 30
|
||||||||||||||||||
|
The Overlook at Hamilton Place
|
|
Chattanooga, TN
|
|
19,509
|
|
6,787
|
|
25,244
|
|
505
|
|
6,787
|
|
25,749
|
|
—
|
|
32,536
|
|
(4,353)
|
|
1992
|
|
12/22/2015
|
|
5 - 30
|
||||||||||||||||||
|
Wade Green Village
|
|
Atlanta, GA
|
|
7,655
|
|
1,840
|
|
8,410
|
|
495
|
|
1,840
|
|
8,901
|
|
4
|
|
10,745
|
|
(1,599)
|
|
1993
|
|
2/29/2016
|
|
5 - 35
|
||||||||||||||||||
|
Anderson Central
|
|
Greenville Spartanburg, SC
|
|
11,539
|
|
5,059
|
|
13,278
|
|
347
|
|
5,059
|
|
13,625
|
|
—
|
|
18,684
|
|
(2,697)
|
|
1999
|
|
4/29/2016
|
|
5 - 30
|
|
(Dollars in thousands)
|
|
|
Initial Costs
|
|
|
|
Gross Amount at Which Carried at Close of Period
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Property name
|
|
Location (MSA)
|
|
Related Encum-brances
|
|
Land
|
|
Building and Improvements
|
|
Costs Capitalized
Subsequent to Acquisition
|
|
Land
|
|
Building and Improvements
|
|
Construction in Progress
|
|
Total (1)
|
|
Accumulated Depreciation
|
|
Year Constr-ucted/Renova-ted
|
|
Date Acquired
|
|
Deprec-iable Lives - Years
|
||||||||||||||||||
|
East Gate Shopping Center
|
|
Augusta, GA
|
|
5,277
|
|
1,653
|
|
7,391
|
|
56
|
|
1,653
|
|
7,447
|
|
—
|
|
9,100
|
|
(1,183)
|
|
1995
|
|
4/29/2016
|
|
5 - 30
|
||||||||||||||||||
|
Fairview Market
|
|
Greenville Spartanburg, SC
|
|
—
|
|
1,353
|
|
5,179
|
|
972
|
|
1,353
|
|
6,129
|
|
22
|
|
7,504
|
|
(905)
|
|
1998
|
|
4/29/2016
|
|
5 - 30
|
||||||||||||||||||
|
Fury's Ferry
|
|
Augusta, GA
|
|
6,096
|
|
2,084
|
|
8,107
|
|
214
|
|
2,084
|
|
8,321
|
|
—
|
|
10,405
|
|
(1,193)
|
|
1996
|
|
4/29/2016
|
|
5 - 35
|
||||||||||||||||||
|
Rosewood Shopping Center
|
|
Columbia, SC
|
|
4,095
|
|
1,671
|
|
5,347
|
|
115
|
|
1,671
|
|
5,459
|
|
3
|
|
7,133
|
|
(679)
|
|
2002
|
|
4/29/2016
|
|
5 - 40
|
||||||||||||||||||
|
Southgate Village
|
|
Birmingham, AL
|
|
7,279
|
|
2,262
|
|
10,290
|
|
239
|
|
2,262
|
|
10,490
|
|
39
|
|
12,791
|
|
(1,468)
|
|
1988
|
|
4/29/2016
|
|
5 - 35
|
||||||||||||||||||
|
The Market at Victory Village
|
|
Nashville, TN
|
|
8,911
|
|
2,271
|
|
12,275
|
|
114
|
|
2,271
|
|
12,389
|
|
—
|
|
14,660
|
|
(1,661)
|
|
2007
|
|
5/16/2016
|
|
5 - 40
|
||||||||||||||||||
|
Lakeland Plaza
|
|
Atlanta, GA
|
|
27,459
|
|
7,079
|
|
33,087
|
|
505
|
|
7,079
|
|
33,586
|
|
6
|
|
40,671
|
|
(4,781)
|
|
1990
|
|
7/15/2016
|
|
5 - 35
|
||||||||||||||||||
|
Cherokee Plaza
|
|
Atlanta, GA
|
|
24,867
|
|
8,392
|
|
32,249
|
|
505
|
|
8,392
|
|
32,709
|
|
45
|
|
41,146
|
|
(3,370)
|
|
1958
|
|
8/8/2016
|
|
5 - 35
|
||||||||||||||||||
|
Heritage Station
|
|
Raleigh, NC
|
|
8,585
|
|
1,684
|
|
9,883
|
|
1,604
|
|
1,684
|
|
11,476
|
|
11
|
|
13,171
|
|
(1,448)
|
|
2004
|
|
8/8/2016
|
|
5 - 40
|
||||||||||||||||||
|
Oak Park Village
|
|
San Antonio, TX
|
|
8,859
|
|
5,745
|
|
10,779
|
|
143
|
|
5,745
|
|
10,922
|
|
—
|
|
16,667
|
|
(1,465)
|
|
1970
|
|
8/8/2016
|
|
5 - 40
|
||||||||||||||||||
|
Sandy Plains Exchange
|
|
Atlanta, GA
|
|
8,676
|
|
4,788
|
|
9,309
|
|
295
|
|
4,788
|
|
9,599
|
|
5
|
|
14,392
|
|
(1,392)
|
|
1997
|
|
8/8/2016
|
|
5 - 32
|
||||||||||||||||||
|
Shoppes of Parkland
|
|
Miami - Ft. Lauderdale, FL
|
|
15,702
|
|
10,779
|
|
16,543
|
|
420
|
|
10,779
|
|
16,945
|
|
18
|
|
27,742
|
|
(2,873)
|
|
2000
|
|
8/8/2016
|
|
5 - 35
|
||||||||||||||||||
|
Thompson Bridge Commons
|
|
Atlanta, GA
|
|
11,599
|
|
1,478
|
|
16,047
|
|
37
|
|
1,478
|
|
16,079
|
|
5
|
|
17,562
|
|
(1,729)
|
|
2001
|
|
8/8/2016
|
|
5 - 40
|
||||||||||||||||||
|
University Palms
|
|
Orlando, FL
|
|
12,421
|
|
4,854
|
|
16,706
|
|
809
|
|
4,854
|
|
17,515
|
|
—
|
|
22,369
|
|
(2,087)
|
|
1993
|
|
8/8/2016
|
|
5 - 37
|
||||||||||||||||||
|
Champions Village
|
|
Houston, TX
|
|
27,400
|
|
12,813
|
|
33,399
|
|
3,150
|
|
12,813
|
|
36,549
|
|
—
|
|
49,362
|
|
(5,580)
|
|
1973
|
|
10/18/2016
|
|
5 - 40
|
||||||||||||||||||
|
Castleberry - Southard
|
|
Atlanta, GA
|
|
10,959
|
|
3,024
|
|
14,142
|
|
142
|
|
3,024
|
|
14,284
|
|
—
|
|
17,308
|
|
(1,420)
|
|
2006
|
|
4/21/2017
|
|
5 - 39
|
||||||||||||||||||
|
Rockbridge Village
|
|
Atlanta, GA
|
|
13,597
|
|
3,141
|
|
15,944
|
|
515
|
|
3,141
|
|
16,459
|
|
—
|
|
19,600
|
|
(1,293)
|
|
2005
|
|
6/6/2017
|
|
5 - 40
|
|
(Dollars in thousands)
|
|
|
Initial Costs
|
|
|
|
Gross Amount at Which Carried at Close of Period
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Property name
|
|
Location (MSA)
|
|
Related Encum-brances
|
|
Land
|
|
Building and Improvements
|
|
Costs Capitalized
Subsequent to Acquisition
|
|
Land
|
|
Building and Improvements
|
|
Construction in Progress
|
|
Total (1)
|
|
Accumulated Depreciation
|
|
Year Constr-ucted/Renova-ted
|
|
Date Acquired
|
|
Deprec-iable Lives - Years
|
||||||||||||||||||
|
Irmo Station
|
|
Columbia, SC
|
|
10,038
|
|
3,602
|
|
11,859
|
|
984
|
|
3,602
|
|
12,842
|
|
2
|
|
16,446
|
|
(1,339)
|
|
1980
|
|
7/26/2017
|
|
5 - 33
|
||||||||||||||||||
|
Maynard Crossing
|
|
Raleigh, NC
|
|
17,449
|
|
6,304
|
|
22,566
|
|
673
|
|
6,304
|
|
23,239
|
|
—
|
|
29,543
|
|
(2,611)
|
|
1996
|
|
8/25/2017
|
|
5 - 30
|
||||||||||||||||||
|
Woodmont Village
|
|
Atlanta, GA
|
|
8,320
|
|
2,713
|
|
10,030
|
|
336
|
|
2,713
|
|
10,366
|
|
—
|
|
13,079
|
|
(1,108)
|
|
2002
|
|
9/8/2017
|
|
5 - 30
|
||||||||||||||||||
|
West Town Market
|
|
Charlotte, NC
|
|
8,503
|
|
1,937
|
|
12,298
|
|
—
|
|
1,937
|
|
12,298
|
|
—
|
|
14,235
|
|
(1,030)
|
|
2004
|
|
9/22/2017
|
|
5 - 37
|
||||||||||||||||||
|
Crossorads Market
|
|
Naples, FL
|
|
18,112
|
|
7,044
|
|
22,627
|
|
126
|
|
7,044
|
|
22,753
|
|
—
|
|
29,797
|
|
(1,485)
|
|
1993
|
|
12/5/2017
|
|
5 - 40
|
||||||||||||||||||
|
Roswell Wieuca Shopping Center
|
|
Atlanta, GA
|
|
—
|
|
12,006
|
|
18,485
|
|
56
|
|
12,006
|
|
18,537
|
|
4
|
|
30,547
|
|
(1,243)
|
|
2007
|
|
11/30/2017
|
|
5 - 40
|
||||||||||||||||||
|
Greensboro Village
|
|
Nashville, TN
|
|
8,250
|
|
3,134
|
|
10,771
|
|
311
|
|
3,134
|
|
11,082
|
|
—
|
|
14,216
|
|
(915)
|
|
2005
|
|
4/27/2018
|
|
5 - 40
|
||||||||||||||||||
|
Governors Towne Square
|
|
Atlanta, GA
|
|
10,976
|
|
2,766
|
|
13,027
|
|
39
|
|
2,766
|
|
13,066
|
|
—
|
|
15,832
|
|
(821)
|
|
2004
|
|
4/27/2018
|
|
5 - 40
|
||||||||||||||||||
|
Neopolitan Way
|
|
Naples, FL
|
|
—
|
|
14,401
|
|
20,524
|
|
472
|
|
14,401
|
|
20,944
|
|
52
|
|
35,397
|
|
(1,638)
|
|
1985
|
|
6/26/2018
|
|
5 - 35
|
||||||||||||||||||
|
Conway Plaza
|
|
Orlando, FL
|
|
9,549
|
|
4,202
|
|
9,782
|
|
823
|
|
4,202
|
|
10,598
|
|
7
|
|
14,807
|
|
(1,003)
|
|
1966
|
|
6/29/2018
|
|
5 - 30
|
||||||||||||||||||
|
Brawley Commons
|
|
Charlotte, NC
|
|
17,963
|
|
8,786
|
|
18,716
|
|
141
|
|
8,786
|
|
18,857
|
|
—
|
|
27,643
|
|
(1,385)
|
|
1997
|
|
7/6/2018
|
|
5 - 40
|
||||||||||||||||||
|
Hollymead Town Center
|
|
Charlottesville, VA
|
|
26,758
|
|
7,503
|
|
33,009
|
|
28
|
|
7,503
|
|
33,035
|
|
2
|
|
40,540
|
|
(1,189)
|
|
2005
|
|
12/21/2018
|
|
5 - 40
|
||||||||||||||||||
|
Gayton Crossing
|
|
Richmond, VA
|
|
17,679
|
|
9,109
|
|
17,791
|
|
341
|
|
9,109
|
|
18,106
|
|
26
|
|
27,241
|
|
(786)
|
|
1983
|
|
1/17/2019
|
|
5 - 30
|
||||||||||||||||||
|
Free State Shopping Center
|
|
Washington D.C.
|
|
46,391
|
|
21,443
|
|
44,831
|
|
23
|
|
21,443
|
|
44,851
|
|
3
|
|
66,297
|
|
(1,230)
|
|
1970
|
|
5/28/2019
|
|
5 - 35
|
||||||||||||||||||
|
Polo Grounds Mall
|
|
West Palm Beach, FL
|
|
13,227
|
|
9,057
|
|
10,907
|
|
68
|
|
9,057
|
|
10,975
|
|
—
|
|
20,032
|
|
(342)
|
|
1966
|
|
6/12/2019
|
|
5 - 30
|
||||||||||||||||||
|
Disston Plaza
|
|
Tampa-St Petersburg, FL
|
|
17,905
|
|
5,579
|
|
22,048
|
|
4
|
|
5,579
|
|
22,052
|
|
—
|
|
27,631
|
|
(493)
|
|
1954
|
|
6/12/2019
|
|
5 - 35
|
|
(Dollars in thousands)
|
|
|
Initial Costs
|
|
|
|
Gross Amount at Which Carried at Close of Period
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Property name
|
|
Location (MSA)
|
|
Related Encum-brances
|
|
Land
|
|
Building and Improvements
|
|
Costs Capitalized
Subsequent to Acquisition
|
|
Land
|
|
Building and Improvements
|
|
Construction in Progress
|
|
Total (1)
|
|
Accumulated Depreciation
|
|
Year Constr-ucted/Renova-ted
|
|
Date Acquired
|
|
Deprec-iable Lives - Years
|
||||||||||||||||||
|
Fairfield Shopping Center
|
|
Virginia Beach, VA
|
|
19,750
|
|
12,728
|
|
14,526
|
|
20
|
|
12,728
|
|
14,546
|
|
—
|
|
27,274
|
|
(483)
|
|
1985
|
|
8/16/2019
|
|
5 - 30
|
||||||||||||||||||
|
Berry Town Center
|
|
Orlando, FL
|
|
12,025
|
|
3,062
|
|
13,628
|
|
—
|
|
3,062
|
|
13,628
|
|
—
|
|
16,690
|
|
(84)
|
|
2003
|
|
11/14/2019
|
|
5 - 30
|
||||||||||||||||||
|
Hanover Center
|
|
Wilmington, NC
|
|
32,000
|
|
16,634
|
|
40,393
|
|
5
|
|
16,634
|
|
40,392
|
|
5
|
|
57,031
|
|
(95)
|
|
1954
|
|
12/19/2019
|
|
5 - 30
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
621,090
|
|
|
285,540
|
|
|
790,134
|
|
|
21,978
|
|
|
285,590
|
|
|
811,657
|
|
|
405
|
|
|
1,097,652
|
|
|
(87,785
|
)
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Brookwood Office Center
|
|
Birmingham, AL
|
|
$30,716
|
|
$1,745
|
|
$42,661
|
|
$230
|
|
$1,745
|
|
$42,889
|
|
$2
|
|
$44,636
|
|
$(4,151)
|
|
2007
|
|
8/29/2016
|
|
5 - 50
|
||||||||||||||||||
|
Galleria 75
|
|
Atlanta, GA
|
|
5,340
|
|
15,156
|
|
1,512
|
|
319
|
|
15,156
|
|
1,823
|
|
8
|
|
16,987
|
|
(705)
|
|
1988
|
|
11/4/2016
|
|
5 - 25
|
||||||||||||||||||
|
Three Ravinia
|
|
Atlanta, GA
|
|
115,500
|
|
9,785
|
|
154,023
|
|
62,065
|
|
11,083
|
|
213,976
|
|
814
|
|
225,873
|
|
(24,867)
|
|
1991
|
|
12/30/2016
|
|
7 - 39
|
||||||||||||||||||
|
Westridge
|
|
San Antonio, TX
|
|
51,834
|
|
15,778
|
|
58,496
|
|
5,617
|
|
15,778
|
|
64,039
|
|
74
|
|
79,891
|
|
(5,491)
|
|
2016
|
|
11/13/2017
|
|
13 - 50
|
||||||||||||||||||
|
Armour Yards
|
|
Atlanta, GA
|
|
40,000
|
|
6,756
|
|
54,534
|
|
318
|
|
6,756
|
|
54,852
|
|
—
|
|
61,608
|
|
(3,684)
|
|
2016
|
|
1/29/2018
|
|
9 - 50
|
||||||||||||||||||
|
150 Fayetteville
|
|
Raleigh, NC
|
|
114,400
|
|
16,072
|
|
140,467
|
|
11,921
|
|
16,072
|
|
145,155
|
|
7,233
|
|
168,460
|
|
(7,138)
|
|
1990
|
|
7/31/2018
|
|
8 - 50
|
||||||||||||||||||
|
Capitol Towers
|
|
Charlotte, NC
|
|
124,814
|
|
13,445
|
|
174,029
|
|
2,421
|
|
13,445
|
|
176,450
|
|
—
|
|
189,895
|
|
(4,822)
|
|
2015
|
|
12/20/2018
|
|
7 - 50
|
||||||||||||||||||
|
CAPTRUST Tower
|
|
Raleigh, NC
|
|
82,650
|
|
|
9,629
|
|
|
115,629
|
|
|
—
|
|
|
9,629
|
|
|
115,629
|
|
|
—
|
|
125,258
|
|
(1,749)
|
|
2009
|
|
7/25/2019
|
|
5 - 50
|
||||||||||||
|
251 Armour Drive
|
|
Atlanta, GA
|
|
—
|
|
|
3,658
|
|
|
1,675
|
|
|
26
|
|
|
3,658
|
|
|
1,674
|
|
|
27
|
|
5,359
|
|
—
|
|
1996
|
|
7/31/2019
|
|
12 - 45
|
||||||||||||
|
Morrocroft Centre
|
|
Charlotte, NC
|
|
—
|
|
|
9,367
|
|
|
89,145
|
|
|
—
|
|
|
9,367
|
|
89,145
|
|
|
—
|
|
98,512
|
|
(130)
|
|
2013 - 2017
|
|
12/20/2019
|
|
5 - 50
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
565,254
|
|
|
101,391
|
|
|
832,171
|
|
|
82,917
|
|
|
102,689
|
|
|
905,632
|
|
|
8,158
|
|
|
1,016,479
|
|
|
(52,737
|
)
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
North by Northwest
|
|
Tallahassee, FL
|
|
$31,209
|
|
$8,281
|
|
$36,980
|
|
$1,238
|
|
$8,281
|
|
$38,218
|
|
$—
|
|
$46,499
|
|
$(5,390)
|
|
2012
|
|
06/01/16
|
|
5 - 46
|
||||||||||||||||||
|
SoL
|
|
Tempe, AZ
|
|
35,656
|
|
7,441
|
|
43,830
|
|
1,193
|
|
7,441
|
|
45,006
|
|
17
|
|
52,464
|
|
(6,028)
|
|
2010
|
|
02/28/17
|
|
5 - 42
|
||||||||||||||||||
|
Stadium Village
|
|
Atlanta, GA
|
|
45,228
|
|
7,930
|
|
60,793
|
|
716
|
|
7,930
|
|
61,495
|
|
14
|
|
69,439
|
|
(6,638)
|
|
2015
|
|
10/27/17
|
|
5 - 48
|
||||||||||||||||||
|
Ursa
|
|
Waco, TX
|
|
31,400
|
|
7,060
|
|
48,006
|
|
1,037
|
|
7,060
|
|
49,041
|
|
2
|
|
56,103
|
|
(4,957)
|
|
2016
|
|
12/18/17
|
|
5 - 49
|
Schedule IV
|
|
|
||||||||||||||||||||||||||
Preferred Apartment Communities, Inc.
|
|
|
||||||||||||||||||||||||||
Mortgage Loans on Real Estate
|
|
|
||||||||||||||||||||||||||
December 31, 2019
|
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Description
|
|
Property Name
|
|
Location (MSA)
|
|
Interest Rate
|
|
Maturity Date
|
|
Periodic Payment Terms
|
|
Prior Liens
|
|
Face Amount of Mortgages (in thousands)
|
|
Carrying Amount of Mortgages (in thousands)
|
|
Principal Amount of Mortgages Subject to Delinquent Principal or Interest
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate Construction Loan on Multifamily Community
|
|
Palisades
|
|
Northern VA
|
|
8.0
|
%
|
|
5/17/2020
|
|
(9)
|
8.0 / 0
|
|
$
|
—
|
|
|
$
|
17,270
|
|
|
$
|
17,250
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate Construction Loan on Multifamily Community
|
|
Wiregrass
|
|
Tampa, FL
|
|
15.0
|
%
|
|
5/15/2020
|
|
(5)
|
8.5 / 6.5
|
|
—
|
|
|
14,976
|
|
|
14,976
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate Construction Loan on Multifamily Community
|
|
Wiregrass Capital
|
|
Tampa, FL
|
|
15.0
|
%
|
|
5/15/2020
|
|
(5)
|
8.5 / 6.5
|
|
—
|
|
|
4,244
|
|
|
4,240
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate Construction Loan on Multifamily Community
|
|
Berryessa
|
|
San Jose, CA
|
|
11.5
|
%
|
|
2/13/2021
|
|
(1)
|
8.5 / 3.0
|
|
—
|
|
|
137,616
|
|
|
115,819
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate Construction Loan on Multifamily Community
|
|
The Anson
|
|
Nashville, TN
|
|
13.0
|
%
|
|
11/24/2021
|
|
(7)
|
8.5 / 4.5
|
|
—
|
|
|
6,240
|
|
|
6,240
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate Construction Loan on Multifamily Community
|
|
The Anson Capital
|
|
Nashville, TN
|
|
13.0
|
%
|
|
11/24/2021
|
|
(7)
|
8.5 / 4.5
|
|
—
|
|
|
5,659
|
|
|
4,440
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate Construction Loan on Multifamily Community
|
|
Sanibel Straits
|
|
Fort Myers, FL
|
|
14.0
|
%
|
|
2/3/2021
|
|
(3)
|
8.5 / 5.5
|
|
—
|
|
|
9,416
|
|
|
8,846
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate Construction Loan on Multifamily Community
|
|
Sanibel Straits Capital
|
|
Fort Myers, FL
|
|
14.0
|
%
|
|
2/3/2021
|
|
(3)
|
8.5 / 5.5
|
|
—
|
|
|
6,193
|
|
|
5,930
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate Construction Loan on Multifamily Community
|
|
Falls of Forsyth
|
|
Atlanta, GA
|
|
14.0
|
%
|
|
7/11/2020
|
|
(3)
|
8.5 / 5.5
|
|
—
|
|
|
22,412
|
|
|
21,513
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate Construction Loan on Multifamily Community
|
|
Newbergh
|
|
Atlanta, GA
|
|
14.0
|
%
|
|
1/31/2021
|
|
(3)
|
8.5 / 5.5
|
|
—
|
|
|
11,749
|
|
|
11,699
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate Construction Loan on Multifamily Community
|
|
Newbergh Capital
|
|
Atlanta, GA
|
|
14.0
|
%
|
|
1/31/2021
|
|
(3)
|
8.5 / 5.5
|
|
—
|
|
|
6,176
|
|
|
5,653
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate Construction Loan on Multifamily Community
|
|
V & Three
|
|
Charlotte, NC
|
|
13.5
|
%
|
|
8/15/2021
|
|
(2)
|
8.5 / 5.0
|
|
—
|
|
|
10,336
|
|
|
10,336
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate Construction Loan on Multifamily Community
|
|
V & Three Capital
|
|
Charlotte, NC
|
|
13.5
|
%
|
|
8/18/2021
|
|
(2)
|
8.5 / 5.0
|
|
—
|
|
|
7,338
|
|
|
6,571
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate Construction Loan on Multifamily Community
|
|
Hidden River II
|
|
Tampa, FL
|
|
12.0
|
%
|
|
10/11/2022
|
|
(4)
|
8.5 / 3.5
|
|
—
|
|
|
4,462
|
|
|
3,012
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate Construction Loan on Multifamily Community
|
|
Hidden River II Capital
|
|
Tampa, FL
|
|
12.0
|
%
|
|
10/11/2022
|
|
(4)
|
8.5 / 3.5
|
|
—
|
|
|
2,763
|
|
|
2,258
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real Estate Construction Loan on Multifamily Community
|
|
Vintage Destin
|
|
Destin, FL
|
|
12.5
|
%
|
|
3/24/2022
|
|
(6)
|
8.5 / 4.0
|
|
—
|
|
|
10,763
|
|
|
8,932
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.20
|
|
(1)
|
|
||
4.21
|
|
(1)
|
|
||
4.22
|
|
(1)
|
|
||
4.23
|
|
(1)
|
|
||
10.1
|
|
(9)
|
|
||
10.2
|
|
(16)
|
|
||
10.3
|
|
(22)
|
|
||
10.4
|
|
(24)
|
|
||
10.5
|
|
(28)
|
*
|
||
10.6
|
|
(3)
|
|
||
10.7
|
|
(2)
|
*
|
||
10.8
|
|
(4)
|
|
||
10.9
|
|
(17)
|
*
|
||
10.10
|
|
(21)
|
*
|
||
10.11
|
|
(7)
|
|
||
10.12
|
|
(7)
|
|
||
10.13
|
|
(7)
|
|
||
10.14
|
|
(29)
|
|
|
|
10.15
|
|
(14)
|
|
||
10.16
|
|
(14)
|
|
|
|
10.17
|
|
(14)
|
|
||
10.18
|
|
(15)
|
|
||
10.19
|
|
(27)
|
|
|
|
|
(20)
|
Previously filed with the Current Report on Form 8-K filed by the Registrant with the Securities and Exchange Commission on February 24, 2017
|
|
|
|
|
(21)
|
Previously filed with the Current Report on Form 8-K filed by the Registrant with the Securities and Exchange Commission on January 29, 2018
|
|
|
|
|
(22)
|
Previously filed with the Current Report on Form 8-K filed by the Registrant with the Securities and Exchange Commission on July 10, 2017
|
|
|
|
|
(23)
|
Previously filed with the Current Report on Form 8-K filed by the Registrant with the Securities and Exchange Commission on December 21, 2018
|
|
|
|
|
(24)
|
Previously filed with the Current Report on Form 8-K filed by the Registrant with the Securities and Exchange Commission on May 3, 2018
|
|
|
|
|
(25)
|
Previously filed with the Form S-3 Registration Statement (Registration No.: 333-233576) filed by the Registrant with the Securities and Exchange Commission on August 30, 2019
|
|
|
|
|
(26)
|
Previously filed with the Current Report on Form 8-K filed by the Registrant with the Securities and Exchange Commission on November 7, 2019
|
|
|
|
|
(27)
|
Previously filed with the Current Report on Form 8-K filed by the Registrant with the Securities and Exchange Commission on October 2, 2019
|
|
|
|
|
(28)
|
Previously filed with the Current Report on Form 8-K filed by the Registrant with the Securities and Exchange Commission on May 2, 2019
|
|
|
|
|
(29)
|
Previously filed with the Current Report on Form 8-K filed by the Registrant with the Securities and Exchange Commission on June 24, 2019
|
|
|
|
|
(30)
|
Previously filed with the Current Report on Form 8-K filed by the Registrant with the Securities and Exchange Commission on February 3, 2020
|
SIGNATURES
|
|
||||||
|
|
|
|
|
|
|
|
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
PREFERRED APARTMENT COMMUNITIES, INC.
|
|
||
|
|
|
|
|
|
|
|
Date: March 3, 2020
|
|
By:
|
/s/ Joel T. Murphy
|
|
|||
|
|
|
|
Joel T. Murphy
|
|
||
|
|
|
|
Chief Executive Officer
|
|
||
|
|
|
|
(Principal Executive Officer)
|
|
||
|
|
|
|
|
|
|
|
Date: March 3, 2020
|
|
By:
|
/s/ John A. Isakson
|
|
|||
|
|
|
|
John A. Isakson
|
|
||
|
|
|
|
Chief Financial Officer
|
|
||
|
|
|
|
(Principal Financial Officer)
|
|
||
Pursuant to the requirements of Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
|
||||||
|
|
|
|
|
|
|
|
Signature
|
|
|
Title
|
Date
|
|
||
|
|
|
|
|
|
|
|
/s/ Joel T. Murphy
|
Chief Executive Officer, President and Director
|
March 3, 2020
|
|||||
Joel T. Murphy
|
(Principal Executive Officer)
|
|
|
||||
|
|
|
|
|
|
|
|
/s/ John A. Isakson
|
|
Chief Financial Officer (Principal Financial Officer)
|
March 3, 2020
|
||||
John A. Isakson
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
/s/ Michael J. Cronin
|
Executive Vice President, Chief Accounting Officer and Treasurer
|
March 3, 2020
|
|||||
Michael J. Cronin
|
(Principal Accounting Officer)
|
|
|
||||
|
|
|
|
|
|
|
|
/s/ Steve Bartkowski
|
|
Director
|
March 3, 2020
|
||||
Steve Bartkowski
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Gary B. Coursey
|
|
Director
|
March 3, 2020
|
||||
Gary B. Coursey
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Daniel M. DuPree
|
|
Director
|
March 3, 2020
|
||||
Daniel M. DuPree
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ William J. Gresham, Jr.
|
|
Director
|
March 3, 2020
|
||||
William J. Gresham, Jr.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Howard A. McLure
|
|
Director
|
March 3, 2020
|
||||
Howard A. McLure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Leonard A. Silverstein
|
|
Director
|
March 3, 2020
|
||||
Leonard A. Silverstein
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
/s/ Timothy A. Peterson
|
|
Director
|
March 3, 2020
|
||||
Timothy A. Peterson
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ John Wiens
|
|
Director
|
|
|
March 3, 2020
|
||
John Wiens
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Sara J. Finley
|
|
Director
|
|
|
March 3, 2020
|
||
Sara J. Finley
|
|
|
|
|
|
|
•
|
not later than 5:00 p.m., Eastern Time, on the 120th day nor earlier than 150 days prior to the first anniversary of the date of release of the proxy statement for the previous year’s annual meeting; or
|
•
|
if the date of the meeting is advanced or delayed by more than 30 days from the anniversary date, not earlier than 150 days prior to the annual meeting or not later than 5:00 p.m., Eastern Time, on the later of the 120th day prior to the annual meeting or the tenth day following the day on which public announcement of the date of such meeting is first made.
|
•
|
not earlier than 120 days prior to the special meeting; and
|
•
|
not later than 5:00 p.m., Eastern Time, on the later of either:
|
◦
|
ninety days prior to the special meeting; or
|
◦
|
ten days following the day of our first public announcement of the date of the special meeting and the nominees proposed by our Board of Directors to be elected at the meeting.
|
•
|
senior to our common stock and any other class or series of our capital stock, the terms of which expressly provide that our Series A Redeemable Preferred Stock ranks senior to such class or series as to dividend rights or rights on our liquidation, winding-up and dissolution;
|
•
|
on parity with any class or series of our capital stock, the terms of which expressly provide that such class or series ranks on parity with our Series A Redeemable Preferred Stock as to dividend rights and rights on our liquidation, winding up and dissolution;
|
•
|
junior to each class or series of our capital stock, including capital stock issued in the future, the terms of which expressly provide that such class or series ranks senior to the Series A Redeemable Preferred Stock as to dividend rights or rights on our liquidation, winding up and dissolution; and
|
•
|
junior to all our existing and future debt obligations.
|
•
|
declare and pay or declare and set apart for payment dividends and we will not declare and make any other distribution of cash or other property (other than dividends or distributions paid in shares of stock ranking
|
•
|
except by conversion into or exchange for shares of stock ranking junior to the Series A Redeemable Preferred Stock as to dividend rights or rights on our liquidation, winding-up or dissolution, or options, warrants or rights to purchase such shares, redeem, purchase or otherwise acquire (other than a redemption, purchase or other acquisition of common stock made for purposes of an employee incentive or benefit plan) for any consideration, or pay or make available any monies for a sinking fund for the redemption of, any common stock or any class or series of our stock ranking junior to or on parity with the Series A Redeemable Preferred Stock as to dividend rights or rights on our liquidation, winding-up or dissolution.
|
•
|
senior to our common stock and any other class or series of our capital stock, the terms of which expressly provide that our mShares rank senior to such class or series as to dividend rights or rights on our liquidation, winding-up and dissolution;
|
•
|
on parity with our Series A Redeemable Preferred Stock and any other class or series of our capital stock, the terms of which expressly provide that such class or series ranks on parity with our mShares as to dividend rights and rights on our liquidation, winding up and dissolution;
|
•
|
junior to each class or series of our capital stock, including capital stock issued in the future, the terms of which expressly provide that such class or series ranks senior to the mShares as to dividend rights or rights on our liquidation, winding up and dissolution; and
|
•
|
junior to all our existing and future debt obligations.
|
•
|
declare and pay or declare and set apart for payment dividends and we will not declare and make any other distribution of cash or other property (other than dividends or distributions paid in shares of stock ranking junior to the mShares as to the dividend rights or rights on our liquidation, winding-up or dissolution, and options, warrants or rights to purchase such shares), directly or indirectly, on or with respect to any shares of
|
•
|
except by conversion into or exchange for shares of stock ranking junior to the mShares as to dividend rights or rights on our liquidation, winding-up or dissolution, or options, warrants or rights to purchase such shares, redeem, purchase or otherwise acquire (other than a redemption, purchase or other acquisition of common stock made for purposes of an employee incentive or benefit plan) for any consideration, or pay or make available any monies for a sinking fund for the redemption of, any common stock or any class or series of our stock ranking junior to or on parity with the mShares as to dividend rights or rights on our liquidation, winding-up or dissolution.
|
•
|
senior to our common stock and any other class or series of our capital stock, the terms of which expressly provide that our Series A1 Redeemable Preferred Stock ranks senior to such class or series as to dividend rights or rights on our liquidation, winding-up and dissolution;
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•
|
on parity with our mShares, Series A Redeemable Preferred Stock, Series M1 Redeemable Preferred Stock and any other class or series of our capital stock, the terms of which expressly provide that such class or series ranks on parity with our Series A1 Redeemable Preferred Stock as to dividend rights and rights on our liquidation, winding up and dissolution;
|
•
|
junior to each class or series of our capital stock, including capital stock issued in the future, the terms of which expressly provide that such class or series ranks senior to the Series A1 Redeemable Preferred Stock as to dividend rights or rights on our liquidation, winding up and dissolution; and
|
•
|
junior to all our existing and future debt obligations.
|
•
|
declare and pay or declare and set apart for payment dividends and we will not declare and make any other distribution of cash or other property (other than dividends or distributions paid in shares of stock ranking
|
•
|
except by conversion into or exchange for shares of stock ranking junior to the Series A1 Redeemable Preferred Stock as to dividend rights or rights on our liquidation, winding-up or dissolution, or options, warrants or rights to purchase such shares, redeem, purchase or otherwise acquire (other than a redemption, purchase or other acquisition of common stock made for purposes of an employee incentive or benefit plan) for any consideration, or pay or make available any monies for a sinking fund for the redemption, purchase or acquisition of, any common stock or any class or series of our stock ranking junior to or on parity with the Series A1 Redeemable Preferred Stock as to dividend rights or rights on our liquidation, winding-up or dissolution.
|
•
|
senior to our common stock and any other class or series of our capital stock, the terms of which expressly provide that our Series M1 Redeemable Preferred Stock ranks senior to such class or series as to dividend rights or rights on our liquidation, winding-up and dissolution;
|
•
|
on parity with our Series A Redeemable Preferred Stock, mShares, Series A1 Redeemable Preferred Stock and any other class or series of our capital stock, the terms of which expressly provide that such class or series ranks on parity with our Series M1 Redeemable Preferred Stock as to dividend rights and rights on our liquidation, winding up and dissolution;
|
•
|
junior to each class or series of our capital stock, including capital stock issued in the future, the terms of which expressly provide that such class or series ranks senior to the Series M1 Redeemable Preferred Stock as to dividend rights or rights on our liquidation, winding up and dissolution; and
|
•
|
junior to all our existing and future debt obligations.
|
•
|
declare and pay or declare and set apart for payment dividends and we will not declare and make any other distribution of cash or other property (other than dividends or distributions paid in shares of stock ranking junior to the Series M1 Redeemable Preferred Stock as to the dividend rights or rights on our liquidation, winding-up or dissolution, and options, warrants or rights to purchase such shares), directly or indirectly, on or with respect to any shares of our common stock or any class or series of our stock ranking junior to or on parity with the Series M1 Redeemable Preferred Stock as to dividend rights or rights on our liquidation, winding-up or dissolution for any period; or
|
•
|
except by conversion into or exchange for shares of stock ranking junior to the Series M1 Redeemable Preferred Stock as to dividend rights or rights on our liquidation, winding-up or dissolution, or options, warrants or rights to purchase such shares, redeem, purchase or otherwise acquire (other than a redemption, purchase or other acquisition of common stock made for purposes of an employee incentive or benefit plan) for any consideration, or pay or make available any monies for a sinking fund for the redemption of, any common stock or any class or series of our stock ranking junior to or on parity with the mShares as to dividend rights or rights on our liquidation, winding-up or dissolution.
|
1.
|
Separation of Employment.
|
2.
|
Consideration for Release. In consideration of Consultant’s promises and the General Release of Claims and Covenant Not To Sue contained in Paragraph 3 of this Agreement, the Company agrees to do the following (collectively, the “Consideration”):
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3.
|
General Release of Claims and Covenant Not To Sue.
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4.
|
Protected Rights. Consultant understands that nothing contained in this Agreement limits his ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (“Government Agencies”) or any self-regulatory organization. Consultant further understands that this Agreement does not limit Consultant’s ability to communicate or share information with any Government Agencies or self-regulatory organizations or otherwise participate in any investigation or proceeding that may be conducted by any Government Agencies or self-regulatory organizations. However, based on Consultant’s release of claims set forth in Paragraph 3 of this Agreement, Consultant understands that Consultant is releasing all claims and causes of action that Consultant might personally pursue or that might be pursued in Consultant’s name and, to the extent permitted by applicable law, Consultant’s right to recover monetary damages or obtain injunctive relief that is personal to Consultant in connection with such claims and causes of action.
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5.
|
Acknowledgment. Consultant shall have until the twenty-first (21st) day after he receives this Agreement to execute this Agreement. If he does not execute the Agreement by that date, the offer contained in this Agreement shall be revoked by the Company. The Company hereby advises Consultant to consult with an attorney prior to executing this Agreement and Consultant acknowledges and agrees that the Company has advised, and hereby does advise, him of his opportunity to consult an attorney or other advisor and has not in any way discouraged him from doing so. Consultant expressly acknowledges and agrees that he has been offered at least twenty-one (21) days to consider this Agreement before signing it, that he has read this Agreement and Release carefully, that he has had sufficient time and opportunity to consult with an attorney or other advisor of his choosing concerning the execution of this Agreement. Consultant acknowledges and agrees that he fully understands that the Agreement is final and binding, that it contains a full release of all claims and potential claims, and that the only promises or representations he has relied upon in signing this Agreement are those specifically contained in the Agreement itself. Consultant acknowledges and agrees that he is signing this Agreement voluntarily, with the full intent of releasing the Company and the Releasees from all claims covered by Paragraph 3.
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6.
|
Revocation and Effective Date. The Parties agree Consultant may revoke the Agreement at will within seven (7) days after he executes the Agreement by giving written notice of revocation to Company. Such notice must be delivered to Jeff Sprain, PAC’s General Counsel, and must actually be received by such person at or before the above-referenced seven-day deadline. The Agreement may not be revoked after the expiration of the seven-day deadline. In the event that Consultant revokes the Agreement within the revocation period described in this Paragraph, this Agreement shall not be effective or enforceable, and all rights and obligations hereunder shall be void and of no effect, except as set forth in Paragraph 1(a) above. Assuming that Consultant does not revoke this Agreement within the revocation period described above, the effective date of this Agreement (the “Effective Date”) shall be the eighth (8th) day after the day on which Consultant executes this Agreement.
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7.
|
Survival of Confidential Information and Restrictive Covenant Agreement. The Confidential Information and Restrictive Covenant Agreement dated as of February 12, 2015 between Consultant and Preferred Apartment Advisors, LLC (the “Covenant Agreement”) shall remain in full force and effect in accordance with its terms and nothing in this Agreement shall alter the terms of the Covenant Agreement.
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8.
|
Return of Property. Consultant agrees that within twenty (20) business days after the Effective Date, he will return to the Company all non-public documents, materials, equipment, keys, access cards, recordings, confidential client-related information, sales information, workforce information, production information, computer data, and other confidential materials and information relating to Company or any of the other Releasees, or the business of the Company or any of the other Releasees (“Company Property”), and that he will not retain or provide to anyone else any copies, excerpts, transcripts, descriptions, portions, abstracts, or other representations of Company Property. To the extent that Consultant has any Company Property in electronic form (including, but not limited to, Company-related e-mail), Consultant agrees that, after returning such electronic Company Property as described in this Paragraph, he will permanently delete such Company Property from all non-Company-owned computers, mobile devices, electronic media, cloud storage, or other media devices, or equipment. Consultant further represents and warrants that he has not, to his knowledge, provided and will not provide any Company Property to any third party (other than to PAC’s or the Company’s or its affiliates’ attorneys, accountants, authorized agents, consultants, due diligence providers, broker dealers, registered investment advisors, and others in connection with the sale or proposed sale of PAC’s securities and the activities leading up to that certain Stock Purchase Agreement dated as of January 31, 2020 by and among PAC, Preferred Apartment Communities Operating Partnership, L.P., PAC Carveout, LLC, NELL Partners, Inc., NMA Holdings, Inc. et al.), including any documents, equipment, or other tangible property, but with the exception of non-confidential materials related Company. Notwithstanding the foregoing, the Company shall, with respect to such Company Property or returned (electronic or
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9.
|
Engagement as an Independent Contractor; Consulting Services. The Company hereby engages Consultant as an independent contractor effective as of the Separation Date, and Consultant hereby accepts such engagement as an independent contractor, upon the terms and conditions set forth in this Agreement. Consultant shall manage, perform, and provide professional consulting services and advice (the “Consulting Services”) as the Company’s Chief Executive Officer (or his or her designee) may request from time to time, but in no event shall such Consulting Services exceed five (5) hours for any week during the Consulting Period (as defined below). During Consultant’s engagement with the Company, and so long as not in violation of applicable law, Consultant shall: (a) perform the Consulting Services in a professional, ethical, and competent manner; (b) promote the best interest of the Company and PAC and take no actions that Consultant in good faith believes will in any way damage the public image or reputation of the Company, PAC, or their affiliates; and (c) abide by the Company’s and PAC’s then-current policies or guidelines while at the Company’s facilities or performing the Consulting Services.
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10.
|
Independent Contractor Relationship. The parties acknowledge and intend that the relationship of Consultant to the Company under this Agreement shall be that of an independent contractor. In performing the Consulting Services under this Agreement, Consultant shall undertake the Consulting Services according to Consultant’s own means and methods of work, which shall be in the exclusive charge and control of Consultant, and which shall not be subject to the control or supervision of the Company, except as to the objectives of those Consulting Services. Consultant shall determine Consultant’s own working hours and schedule and shall not be subject to the Company’s personnel policies and procedures as to hours and schedule. Consultant shall be entirely and solely responsible for Consultant’s actions or inactions and the actions or inactions of any agents, employees or subcontractors, if any, while performing Consulting Services hereunder. Consultant shall not, in any form or fashion, maintain, hold out, represent, state or imply to any other individual or entity that an employer/employee relationship exists between the Company and Consultant, Consultant’s agents or employees. Consultant is not granted, nor shall Consultant represent that Consultant is or has been granted, any right or authority to make any representation or warranty or assume or create any obligation or responsibility, express or implied, for, on behalf or in the name of the Company, to incur debts for the Company, or to bind the Company in any manner whatsoever.
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11.
|
Term of the Agreement and Engagement; Termination. The term of Consultant’s engagement with the Company under this Agreement shall begin on the Separation Date and continue until the third (3rd) anniversary of such date (the “Consulting Period”). Following the third (3rd) anniversary of the Separation Date, either party may terminate this Agreement and Consultant’s engagement hereunder by providing 30 days’ advance written notice to the other party. In addition, the Company may terminate Consultant’s engagement hereunder immediately at any time (whether before or after the third anniversary of the Separation Date) with Cause. For purposes of this Agreement, “Cause” means the occurrence of any of the following: (a) Consultant’s final, non-appealable conviction of, or entry of a plea of guilty or nolo contendere or no contest with respect to: (i) any felony, or any misdemeanor involving dishonesty or moral turpitude (including pleading guilty or nolo contendere to a felony or lesser charge which results from plea bargaining), whether or not such felony, crime or lesser offense is connected with the business of the Company, or (ii) any crime connected with the business of the Company; (b) Consultant’s engaging in any illegal conduct, gross negligence, or gross misconduct in connection with the performance of the Consulting Services; (c) Consultant’s commission of or engagement in any act of fraud or material misappropriation, dishonesty or embezzlement; or (d) Consultant’s breach of any material duty owed to the Company, or material breach of this Agreement. Consultant’s engagement hereunder shall terminate automatically upon Consultant’s death during the term of this Agreement, in which case, the Company shall pay any earned but unpaid Consulting Fee (as defined below) to Consultant’s estate and reimburse any outstanding expenses incurred in accordance with this Agreement and shall have no further obligations under this Agreement. Upon proper termination of this Agreement, Consultant shall be entitled to payment of any earned but unpaid compensation for the Consulting Services as of the termination date, and any unpaid portion of the benefits set forth in Paragraph 2, payable in accordance with and subject to the terms of Paragraph 2. Consultant shall not be entitled to any additional or future compensation or any benefits whatsoever. Consultant acknowledges and agrees that, as an independent contractor, he is not entitled to receive unemployment insurance benefits. Upon the termination of Consultant’s engagement hereunder for any reason, he agrees not to file or pursue a claim for unemployment insurance benefits. Notwithstanding the foregoing, in no event shall “Cause” mean, include or relate to, directly or indirectly, any matter, claim, event, allegation or otherwise arising out of or relating to any of those matters set forth on Schedule 1 hereto.
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12.
|
Compensation and Expenses.
|
13.
|
Protection of Confidential Information; Use of Company Materials. Consultant agrees that the terms of Section 2 of the Covenant Agreement are incorporated herein by reference, and that he will abide by the terms of Section 2 of the Covenant Agreement with respect to any Confidential Information (as defined in the Covenant Agreement) he learns in connection with providing the Consulting Services under this Agreement. With respect to any such information, Consultant agrees that his obligations under Section 2(a)(i) of the Covenant Agreement shall be in effect during the Consulting Period and for two (2) years thereafter. Consultant acknowledges and agrees that any and all materials provided by the Company to Consultant that are to be used in connection with Consultant’s provision of the Consulting Services under this Agreement are the property of the Company and may not be used outside of the scope, terms, and conditions of this Agreement or in providing services to or on behalf of any person or entity other than the Company. Consultant agrees that he will immediately return all such materials to the Company on or prior to the end of the Consulting Period, or at any other time the Company requests such return.
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14.
|
Non-Disparagement. Within one (1) business day after Consultant executes this Agreement, the Company will instruct the Named Executive Officers (as defined by applicable securities laws) and Directors of PAC not to make any public statement, whether written or oral, that is derogatory or disparaging of Consultant or of his management or services in any capacity, commencing on the date Consultant executes this Agreement and for a period ending twenty-four (24) months after the Separation Date. The foregoing obligation shall not be deemed to prohibit the Company, PAC, or any individual from testifying truthfully as required by law, nor shall this obligation be deemed to prohibit the Company, PAC, or any individual from communicating with any Government Agency or self-regulatory organization.
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15.
|
Final Agreement. Subject to Paragraph 7, this Agreement contains the entire agreement between the Company and Consultant with respect to the subject matter hereof. The Parties agree that this Agreement may not be modified except by a written document signed by both Parties. The Parties agree that this Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement.
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16.
|
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state of Georgia without giving effect to its conflict of law principles.
|
17.
|
Severability. With the exception of the release contained in Paragraph 3, the provisions of this Agreement are severable and if any part of it is found to be unenforceable the other paragraphs shall remain fully and validly enforceable. If the general release and covenant not to sue set forth in Paragraph 3 of this Agreement is found to be unenforceable, this Agreement shall be null and void and Consultant will be required to return to the Company all Consideration already
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18.
|
Waiver. The failure of either party to enforce any of the provisions of this Agreement shall in no way be construed to be a waiver of any such provision. Any waiver of any provision of this Agreement must be in a writing signed by the party making such waiver. No waiver of any breach of this Agreement shall be held to be a waiver of any other or subsequent breach.
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19.
|
No Reemployment. Consultant agrees that by signing this Agreement, he relinquishes any right to employment or reemployment with the Company or any of the Releasees. Consultant agrees that he will not seek, apply for, accept, or otherwise pursue employment with the Company or any of the Releasees, and acknowledges that if he reapplies for or seeks employment with the Company or any of the Releasees, the Company’s or any of the Releasees’ refusal to hire Consultant based on this Paragraph 18 shall provide a complete defense to any claims arising from Consultant’s attempt to obtain employment.
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20.
|
Internal Revenue Code Section 409A. This Agreement shall be interpreted and administered in a manner so that any amount or benefit payable hereunder shall be paid or provided in a manner that is either exempt from or compliant with the requirements Section 409A of the Internal Revenue Code of 1986, as amended and applicable Internal Revenue Service guidance and Treasury Regulations issued thereunder. If Consultant is entitled to be paid or reimbursed for any taxable expenses under this Agreement, and such payments or reimbursements are includible in Consultant’s federal gross taxable income, the amount of such expenses reimbursable in any one calendar year shall not affect the amount reimbursable in any other calendar year, and the reimbursement of an eligible expense must be made no later than December 31 of the year after the year in which the expense was incurred. No right of Consultant to reimbursement of expenses under this Agreement shall be subject to liquidation or exchange for another benefit. Notwithstanding anything in this Agreement to the contrary, the expenses subject to reimbursement pursuant to Section 2(c) and (f) hereof shall be incurred by Consultant and reimbursed by the Company in calendar year 2020.
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21.
|
Attorneys’ Fees. If the Parties become involved in legal action regarding the enforcement of this Agreement, the prevailing Party in such action will be entitled, in addition to any other remedy, to recover from the non-prevailing Party its or his reasonable costs and attorneys’ fees incurred in such action.
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22.
|
Continuation of Directors and Officers Liability Insurance. The Company shall maintain in full force and effect the Company’s directors’ and officers’ liability insurance coverage in effect immediately prior to the date of execution of this Agreement, which covers Consultant to the same extent as all other current and former executive officers and directors of the Company and any Releasees. In the event the Company chooses to renew, modify or replace the directors’ and officers’ liability insurance coverage (including, without limitation, acquiring tail insurance coverage) currently in effect, then the Company represents, warrants and covenants that such renewed, modified or replaced policy shall continue to cover Consultant as a former director and officer of the Company and its affiliates to the same extent as such policy shall cover then existing and former directors and officers of the Company and its affiliates. The Company shall be solely responsible for any premiums for such coverage.
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Leonard A. Silverstein
/s/ Leonard A. Silverstein
Date: March 3, 2020
|
Preferred Apartment Advisors, LLC
By: /s/ Joel T. Murphy
Joel T. Murphy, Chief Executive Officer
Date: March 3, 2020
Preferred Apartment Communities, Inc.
By: /s/ Joel T. Murphy
Joel T. Murphy, Chief Executive Officer
Date: March 3, 2020
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|
Exhibit 21
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Subsidiaries of Preferred Apartment Communities, Inc.
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|
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Name
|
Jurisdiction of Formation
|
|
|
360 Forsyth Lending, LLC
|
Delaware
|
360 Ft. Myers Lending, LLC
|
Delaware
|
360 Ft Myers Capital Lending, LLC
|
Delaware
|
525 Avalon Park, LLC
|
Delaware
|
Altman Pasco Capital Lending, LLC
|
Delaware
|
Altman Pasco Lending, LLC
|
Delaware
|
Barclay Crossing, LLC
|
Delaware
|
Berryessa Lending, LLC
|
Delaware
|
Bristol Birmingham Lending, LLC
|
Delaware
|
CDP Duval Lending, LLC
|
Delaware
|
Claiborne Crossing, LLC
|
Delaware
|
Deltona Landing, LLC
|
Delaware
|
Haven Campus Communities Kennesaw Member, LLC
|
Georgia
|
Haven Campus Communities Kennesaw, LLC
|
Delaware
|
Haven Campus Communities - Charlotte, LLC
|
Georgia
|
Haven Charlotte Lending, LLC
|
Delaware
|
Main Street Apartment Homes, LLC
|
Maryland
|
Main Street Baldwin, LLC
|
Delaware
|
Main Street Stone Creek, LLC
|
Delaware
|
Manassas Mezzanine Lending, LLC
|
Georgia
|
Mulberry Alexandria Lending, LLC
|
Delaware
|
Mulberry Alexandria Capital Lending, LLC
|
Delaware
|
New Market - Anderson, LLC
|
Delaware
|
New Market - Berry, LLC
|
Delaware
|
New Market Brawley GP, LLC
|
Delaware
|
New Market - Brawley, L.P.
|
Delaware
|
New Market - Castleberry, LLC
|
Delaware
|
New Market - Champions, LLC
|
Delaware
|
New Market - Cherokee, LLC
|
Delaware
|
New Market - Conway, LLC
|
Delaware
|
New Market - Crossroads, LLC
|
Delaware
|
New Market - Cumming, LLC
|
Delaware
|
New Market - Disston, LLC
|
Delaware
|
New Market - East Gate, LLC
|
Delaware
|
New Market - Fairfield, LLC
|
Delaware
|
New Market - Fairview, LLC
|
Delaware
|
New Market - Free State, LLC
|
Delaware
|
New Market - Furys Ferry, LLC
|
Delaware
|
New Market - Gallatin, LLC
|
Delaware
|
New Market - Gayton, LLC
|
Delaware
|
PAC Aldridge at Town Village, LLC
|
Delaware
|
PAC Artisan at Viera, LLC
|
Delaware
|
PAC Brookwood Center, LLC
|
Delaware
|
PAC Carveout, LLC
|
Delaware
|
PAC Chestnut Farm Lending, LLC
|
Delaware
|
PAC Citilakes, LLC
|
Delaware
|
PAC Citrus Village, LLC
|
Delaware
|
PAC Citypark View, LLC
|
Delaware
|
PAC City Park View II, LP
|
Delaware
|
PAC City Vista Apartments, LLC
|
Delaware
|
PAC Creekside, LLC
|
Delaware
|
PAC Crosstown Walk, LLC
|
Delaware
|
PAC Cypress, LLC
|
Delaware
|
PAC Dawson Lending, LLC
|
Delaware
|
PAC Finance, LLC
|
Maryland
|
PAC Founders Village, LLC
|
Delaware
|
PAC Galleria 75, LLC
|
Delaware
|
PAC Galleria 75 II, LLC
|
Delaware
|
PAC Green Park, LLC
|
Delaware
|
PAC Hidden River, LLC
|
Delaware
|
PAC Hidden River Lending II, LLC
|
Delaware
|
PAC Hidden River Capital Lending II, LLC
|
Delaware
|
PAC Lending, LLC
|
Delaware
|
PAC Lenox, LLC
|
Delaware
|
PAC Lenox Regent, LLC
|
Delaware
|
PAC Lenox Retreat, LLC
|
Delaware
|
PAC Lenox Village, LLC
|
Delaware
|
PAC Luxe, LLC
|
Delaware
|
PAC MBS, LLC
|
Delaware
|
PAC Midlothian, LLC
|
Delaware
|
PAC Naples, LLC
|
Delaware
|
PAC NC GP, LLC
|
Delaware
|
PAC Newport Kennesaw Lending, LLC
|
Delaware
|
PAC Overlook at Crosstown Walk, LLC
|
Delaware
|
PAC Overton Rise, LLC
|
Delaware
|
PAC Northpointe, LLC
|
Delaware
|
PAC Palisades, LLC
|
Delaware
|
PAC POGF Investor, LLC
|
Delaware
|
PAC Reserve at Summit Crossing, LLC
|
Delaware
|
PAC Retreat at Greystone, LLC
|
Delaware
|
PAC Sarasota, LLC
|
Delaware
|
PAC Sorrel, LLC
|
Delaware
|
PAC Sorrel II, LLC
|
Delaware
|
PAC Summit Crossing, LLC
|
Georgia
|
PAC Summit Crossing II, LLC
|
Delaware
|
PAC Vestavia, LLC
|
Delaware
|
PAC Vineyards, LLC
|
Delaware
|
PAC Vintage Destin Lending, LLC
|
Delaware
|
PAC Vintage Horizon Lending, LLC
|
Delaware
|
PACOP Special Member, Inc.
|
Delaware
|
Parkway Centre, LLC
|
Delaware
|
Parkway Town Centre, LLC
|
Delaware
|
PCC College Station, LLC
|
Delaware
|
PCC Lubbock, LLC
|
Delaware
|
PCC Orlando, LLC
|
Delaware
|
PCC Stadium Village, LLC
|
Delaware
|
PCC Tallahassee, LLC
|
Delaware
|
PCC Tempe, LLC
|
Delaware
|
PCC Waco, LLC
|
Delaware
|
POP 150 Fayetteville, LP
|
Delaware
|
POP 150 GP, LLC
|
Delaware
|
POP 251 Armour Yards, LLC
|
Delaware
|
POP 3 Ravinia, LLC
|
Delaware
|
POP 4208 Six Forks Road, L.P.
|
Delaware
|
POP 8 West Mezzanine Lending, LLC
|
Delaware
|
POP Armour Yards, LLC
|
Delaware
|
POP CapTrust GP, LLC
|
Delaware
|
POP Capitol Towers, LP
|
Delaware
|
POP Carveout, LLC
|
Delaware
|
POP Morrocroft GP, LLC
|
Delaware
|
POP Morrocroft, L.P.
|
Delaware
|
POP NC GP, LLC
|
Delaware
|
POP Westridge, LLC
|
Delaware
|
Powder Springs-Macland Retail, LLC
|
Delaware
|
Preferred Apartment Advisors, LLC
|
Delaware
|
Preferred Apartment Communities Operating Partnership, L.P.
|
Delaware
|
Preferred Campus Communities, LLC
|
Maryland
|
Preferred Office Fund Manager, LLC
|
Delaware
|
Preferred Office Properties, LLC
|
Maryland
|
Salem Cove, LLC
|
Delaware
|
SE Grocery LLC
|
Delaware
|
Spring Hill Plaza, LLC
|
Delaware
|
Starkville Mezzanine Lending, LLC
|
Georgia
|
Stone Rise Apartments, LLC
|
Delaware
|
Sunbelt Retail, LLC
|
Delaware
|
Sweetgrass Corner, LLC
|
Delaware
|
TP Kennesaw Lending, LLC
|
Delaware
|
TP Kennesaw II Lending, LLC
|
Delaware
|
TP Kennesaw Capital Lending, LLC
|
Delaware
|
Woodstock Crossing Center, LLC
|
Georgia
|
1.
|
I have reviewed this annual report on Form 10-K of Preferred Apartment Communities, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: March 3, 2020
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/s/ Joel T. Murphy
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Joel T. Murphy
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Chief Executive Officer
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Date: March 3, 2020
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/s/ John A. Isakson
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John A. Isakson
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Chief Financial Officer
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Date: March 3, 2020
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/s/ Joel T. Murphy
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Joel T. Murphy
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Chief Executive Officer
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Date: March 3, 2020
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/s/ John A. Isakson
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John A. Isakson
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Chief Financial Officer
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