Preferred Apartment Communities (APTS) Tops Q3 EPS by 8c, Miss on Revenues; Offers FY17 Revenue Outlook

Preferred Apartment Communities (NYSE: APTS) reported Q3 EPS of ($0.49), $0.08 better than the analyst estimate of ($0.57). Revenue for the quarter came in at $74.9 million versus the consensus estimate of $76.49 million.

2017 Guidance:

Net income (loss) per share - We are actively adding properties and real estate loan investments to our real estate portfolio and the specific timing of the closing of acquisitions is difficult to predict. Through December 31, 2016, the Company expensed property acquisition costs as incurred, which include costs such as due diligence, legal, certain accounting, environmental and consulting, when the acquisition constituted a business combination. Accounting Standards Update 2017-01, which was adopted by the Company effective January 1, 2017, will cause the Company to capitalize certain of these costs for transactions deemed to be asset acquisitions (which we believe our contemplated future acquisitions will be deemed to be) and amortize them over their estimated useful lives. Acquisition activity by its nature can cause material variation in our reported depreciation and amortization expense and interest income. Since net income (loss) per share is calculated net of depreciation and amortization expense, our net income (loss) results can fluctuate, possibly significantly, depending upon the timing of the closing of acquisitions. For this reason, we are unable to reasonably forecast this measure or provide a reconciliation of our projected Core FFO per share to this measure.

Core FFO per share - We currently project Core FFO to be in the range of $1.43 - $1.46 per share for the full year 2017.

Revenue - We currently project total revenues to be in the range of $285 million - $315 million for the full year 2017.

GUIDANCE:

Preferred Apartment Communities sees FY2017 revenue of $285-315 million, versus the consensus of $296.82 million.

For earnings history and earnings-related data on Preferred Apartment Communities (APTS) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Zeo Energy Corp (ZEO) Misses Q2 EPS by 7c
• SanDisk upgraded at JPMorgan after investor day; shares climb