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Preferred Apartment Communities, Inc. Reports Results For Fourth Quarter 2013

Stocks in this article: APTS

ATLANTA, March 3, 2014 /PRNewswire/ -- Preferred Apartment Communities, Inc. (NYSE MKT: APTS) (the "Company" or "Preferred Apartment Communities") today reported results for the quarter ended December 31, 2013.  Unless otherwise indicated, all per share results are reported based on the basic weighted average shares of Common Stock and Class A Units of our operating partnership ("Class A OP Unit") outstanding.

Preferred Apartment Communities logo

"We believe the fourth quarter 2013 results represent another extraordinary quarter for the Company," said John A. Williams, Preferred Apartment Communities' Chairman and Chief Executive Officer.  Williams added, "We believe our fourth quarter 2013 FFO, NFFO and AFFO were exceptional.  Especially of note was our 21% increase in FFO per share for the fourth quarter 2013 over the fourth quarter 2012.  For 2014, we look forward to continuing our capital raising efforts and deploying that capital into markets which we believe have the strong economic fundamentals we are seeking and are accretive to our stockholders."

Fourth Quarter 2013

The Company reported Funds From Operations Attributable to Common Stockholders and Unitholders, or FFO, as defined by the National Association of Real Estate Investment Trusts, or NAREIT, for the fourth quarter 2013 of $2,994,364, or $0.23 per share, compared with FFO of $993,053 for the fourth quarter 2012, or $0.19 per share.  This represents a period over period increase of approximately 202% in FFO and an increase of approximately 21% in FFO per share.  For the fourth quarter 2013, there were 13,298,264 basic weighted average shares of Common Stock and Class A OP Units outstanding, compared to 5,181,708 basic weighted average shares of Common Stock and Class A OP Units outstanding for the fourth quarter 2012.  At December 31, 2013, we had outstanding 15,294,578 shares of Common Stock, excluding 29,016 shares of restricted Common Stock, and 106,988 Class A OP Units.

The Company reported Normalized Funds From Operations Attributable to Common Stockholders and Unitholders, or NFFO, for the fourth quarter 2013 of $3,281,225, or $0.25 per share, compared with NFFO for the fourth quarter 2012 of $993,053, or $0.19 per share.  This represents a period over period increase of approximately 230% in NFFO and an increase of approximately 32% in NFFO per share.  NFFO is calculated by beginning with FFO and making certain adjustments to FFO which are either not likely to occur on a regular basis or are otherwise not representative of the Company's ongoing operating performance.

The Company reported Adjusted Funds From Operations Attributable to Common Stockholders and Unitholders, or AFFO, for the fourth quarter 2013 of $2,952,499, or $0.22 per share, compared with AFFO for the fourth quarter 2012 of $1,002,352, or $0.19 per share.  This represents a period over period increase of approximately 195% in AFFO and an increase of approximately 16% in AFFO per share.  AFFO is calculated by beginning with NFFO and adjusting for certain items that we believe by their nature are not comparable from period to period or tend to obscure the Company's actual operating performance.  The items adjusted are discussed below in more detail.

FFO, NFFO and AFFO are all calculated after deductions for all preferred stock dividends.  A reconciliation of net income (loss) attributable to common stockholders to FFO, NFFO and AFFO is included in the Supplemental Financial Data Report attached to this press release on our website and is available using the following link: http://preferredapartmentcommunities.investorroom.com/4Q13_Supplemental_Data.

The Company reported total revenues for the fourth quarter 2013 of $8,628,904, compared to total revenues for the fourth quarter 2012 of $3,078,128, an increase of approximately $5.6 million, or approximately 180%.  These numbers exclude the revenues from our Trail Creek Community, which is included in discontinued operations, of $1,092,644 and $673,974 for the fourth quarters of 2013 and 2012, respectively.

The Company reported net cash provided by operating activities for the fourth quarter 2013 of $2,927,434.  This represents an increase of approximately $1.8 million, or approximately 153% over net cash provided by operating activities for the fourth quarter 2012.

The Company reported net income attributable to common stockholders for the fourth quarter 2013 of $430,293, or approximately $0.03 per share, compared to net income attributable to common stockholders for the fourth quarter 2012 of $202,821, or approximately $0.04 per share.

The increases in FFO, NFFO, AFFO, revenue and  net cash provided by operating activities were primarily due to a full quarter of operating results from the four communities acquired in the first half of 2013, which included additional rental revenue and additional operational expenses, a full quarter of income from eight additional real estate loans that were originated in the first nine months of 2013 or the fourth quarter of 2012, and a partial quarter of income from three additional real estate loans originated during the fourth quarter 2013, whereas the fourth quarter 2012 operating results did the effects of the these investments.

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