Preferred Apartment Communities, Inc. (NYSE:APTS) Q3 2019 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 11:00 am ET


Preferred Apartment Communities, Inc. (NYSE:APTS) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to Preferred Apartment Communities Third Quarter 2019 Earnings Conference Call. [Operator Instructions]

I would now like to introduce your host, Lenny Silverstein, President and Chief Operating Officer. Please go ahead, sir.

Leonard A. Silverstein

Thank you for joining us this morning, and welcome to Preferred Apartment Communities third quarter 2019 earnings call. We hope that each of you have had a chance to review our third quarter earnings report, which we released yesterday after the market closed. In a moment, I'll be turning the call over to John Isakson, the Company's Chief Financial Officer, to share a detailed description of our third quarter operating results. Dan DuPree, our Chairman and CEO, will share his thoughts on the state of the company.

Following the conclusion of our prepared remarks, we'll be pleased to answer any questions you might have. Also, with us this morning is the Senior Executive Team of our company, Jeff Sherman, Executive Vice President and Managing Director of our Multifamily Business Unit; Joel Murphy, CEO of New Market Properties and CEO-Elect of PAC; Boone DuPree, President of Preferred Office Properties; Paul Cullen, Executive Vice President and Managing Director of Preferred Campus Communities; Mike Cronin, our Chief Accounting Officer; and Jeff Sprain, our General Counsel.

Before we begin, I'd like everyone to note that forward-looking statements may be made during our call. These statements are not guarantees of future performance and involve various risks and uncertainties and actual results may differ materially. There is a discussion about these risks and uncertainties in yesterday's press release. Our press release can be found on our website at The press release also includes our supplemental financial data report for the third quarter with definitions and reconciliations of non-GAAP financial measures and other terms that may be used in today's discussion.

We encourage you to refer to this information during your review of our operating results and financial performance. Unless we otherwise indicate, all per share results that we discuss this morning are based on the basic weighted average shares of common stock and Class A partnership units outstanding for the period. A key component of our success has been our strategically designed and highly successful Series A and mShare preferred stock capital-raising programs. Through our broker-dealer, Preferred Capital Securities, we raised almost $134 million in gross proceeds from our preferred stock sales during the third quarter alone.

As these offerings come to our closed over the next few months, we will launch our next Preferred Stock, capital raising strategy designed to enable us to continue our solid growth objectives. The success of our preferred capital raising program has enabled us to acquire an aggregate of approximately $289 million in new assets in originate almost $15 million in new real estate loan investments during the third quarter of this year. As of September 30, this year, we now own an aggregate of 101 Class A multifamily, student housing, grocery-anchored shopping centers and office properties in 15 states and 56