Preferred Apartment Communities, Inc. (NYSE:APTS) Q2 2019 Earnings Conference Call Transcript
Jul 30, 2019 • 11:00 am ET
the next level. No matter how much we focus on this effort, it is also abundantly clear that the successes we've achieved as a company, since our launch and commencement of operations with our IPO, a little over eight years ago is due in large part to the strength and depth of all of our associates, top to bottom, as well as the creation of a positive culture unique to our company. This entrepreneurial effort also extends to our strategically designed and highly successful series A and the M share preferred stock capital raising programs. Through our broker dealer preferred capital securities, we raised over $142 million in preferred stock sales during the second quarter alone. We are already designing a successful preferred stock capital raising strategy, as these current offerings finish up the end of this year and early next year.
I now would like to turn the call over to John Isakson. John?
Thanks, Lenny. For the second quarter 2019, the company generated revenues of almost $114 million, FFO of $0.36 a share and AFFO of $0.22 a share. You will note that our revenues are up over 18% from the second quarter of 2018, owing to the continued growth in all of our property verticals. For the second quarter, our preferred stock dividend increased by almost $7 million and our common stock outstanding was up by almost 4.5 million shares over the second quarter of 2018.
In reviewing the reconciliation of FFO, you may note the decrease in amortization of intangible assets and deferred leasing costs. This line item was down approximately $3.4 million from the same period last year due to a slower pace of multifamily acquisitions. Multifamily assets have the shortest lease terms so the amortization of these intangibles occurs quickly. As acquisition volume goes down in the segment, the amortization of these items becomes more heavily weighted on our other verticals, which have longer lease terms and thus longer amortization periods.
Our AFFO decline was driven in part by the decline of almost $4 million in purchase option termination fees and related revenue adjustments due to more of the revenue being booked as accruals of these fees versus actual cash. We booked these fees as accruals of expected payments over the term of the loan. Sometimes our developers pay us early and sometimes we receive the cash payments upon a capital event. In the cases where the accruals are greater than the cash received, the net amount would be a deduction in the calculation of AFFO. When the cash received exceeds the accruals, it will be added into calculating AFFO. Please see the related Footnote 9 in our SFD for further clarification on this point.
Our results are also affected by the uninvested cash we had on the balance sheet at the end of the quarter. As we've said in the past, our transactions, both acquisitions and mezzanine loans are lumpy and a sometimes unpredictable timing can affect both our pace of capital deployment