BRT - Preferred Apartment trades through deal price on possible higher bid dividend

Preferred Apartment (NYSE:APTS) rose 11% and closed at $25.80, above its announced $25/share sale to Blackstone (NYSE:BX) at least partly on some expectations that it could get a higher bid in its go-shop period.  "At a 3.5% apartment cap rate and a 5.5% retail cap rate, we estimate a value of $28ps - but that could be a stretch, taking everything into consideration," Truist analyst Michael Lewis wrote in a note earlier.  Lewis said expenses such as transaction/frictions costs or potential break-up fees also have to be taken into considering in a deal.  The "possibility of a higher offer can't be ruled out," Lewis wrote. "However, we believe Blackstone is a buyer well-positioned to acquire the apartment, retail, loan book and other assets all for cash." Colliers analyst Barry Oxford said that while its possible a higher bid comes in, he believes the deal will ultimately close at $25/share. APTS shares may

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Preferred Apartment trades through deal price on possible higher bid, dividend