Preferred Apartment Communities (APTS) is a diversified REIT that likely has appeared on many investors’ radars due to its outsized 12% dividend yield. APTS reported impressive rent collection numbers in the second quarter, which will likely prove to be among the best if not the best in the sector. In this article, I examine the safety of the 12% dividend yield and explain why APTS’ preferred stock differs from the typical preferred stock.
Introducing Preferred Apartment Communities
While APTS’ name implies that it is an apartment REIT, it also owns retail and office real estate: