Preferred Apartment Communities Inc. (APTS)
Dividend Yield: 6.4%
Preferred Apartment Communities Inc. (NYSE:APTS) is one of the biggest growth dynamos in the REIT space right now, dishing out 66% in capital gains alone over the past five years to nearly double the return of the Vanguard REIT ETF (NYSE:VNQ).
What has Wall Street so giddy about this one?
APTS primarily owns and operates multi-family properties in the U.S., though it also dips its fingers into a number of secondary investments, including student housing, office properties and even mortgage and other loans.
What’s really interesting about APTS is that it’s able to aggressively purchase new properties while still maintaining a roughly 90% FFO payout ratio because it raises money via non-traded preferred shares. The company expects to raise $2 billion over the next three years via offerings of its mShares no-loaded preferred and commission-based Series A redeemable preferred shares.
Preferred Apartment Communities also has raised its dividend six times over the past five years, for a total 47% improvement in the payout since its first quarterly distribution in 2013.
Everything about APTS screams growth, from its portfolio to its stock price to its dividend. This is a clear buy with enormous potential.
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