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Preferred Apartment Communities, Inc. Reports Results for Fourth Quarter 2020

03/01/2021

ATLANTA, March 1, 2021 /PRNewswire/ -- Preferred Apartment Communities, Inc. (NYSE: APTS) ("we," "our," the "Company," "Preferred Apartment Communities" or "PAC") today reported results for the quarter and year ended December 31, 2020. Unless otherwise indicated, all per share results are reported based on the basic weighted average shares of Common Stock and Class A Units ("Class A Units") of the Preferred Apartment Communities Operating Partnership (our "Operating Partnership") outstanding. See Definitions of Non-GAAP Measures.

"We are very pleased with our fourth quarter and full year operational results across our entire portfolio which demonstrate the durability and quality of these assets located in the thriving Sunbelt region.  Our rent collections were very strong, and we credit this to our best in class teams and our focused Sunbelt strategy. Our Class A suburban multifamily portfolio continues to demonstrate solid growth due to broad positive economic and migration trends," stated Joel Murphy, Preferred Apartment Communities' President and Chief Executive Officer.

"2020 was also a transformational year for PAC. We went on offense and focused on several key strategic initiatives designed to streamline our business and position PAC for future growth. We completed our internalization, which simplified our platform, and completed the sale of our student housing portfolio for $478 million, which simplified our portfolio. With shareholder approval, we improved our governance by allowing shareholders to amend our bylaws, and we improved our balance sheet flexibility by reducing the call option on our Series A preferred stock from 10 years to 5 years. As a result of these steps, we ended the year having significantly reduced our preferred shares outstanding and invested $277 million in multifamily acquisitions.  We enter 2021 energized to continue our drive to further improve our balance sheet and to grow our multifamily portfolio by leveraging our deep relationships and local market knowledge in key suburban Sunbelt markets."

Our operating results are presented below.

















Three months ended
December 31,




Year ended December 31,






2020


2019


% change


2020


2019


% change

















Revenues (in thousands)

$

121,121



$

124,866



(3.0)

%


$

502,197



$

470,427



6.8

%

















Per share data:














Net income (loss) (1)

$

(0.77)



$

(0.71)



(8.5)

%


$

(6.95)



$

(2.73)






FFO (2)

$

(0.20)



$

0.31





$

(3.36)



$

1.37






Core FFO (2)

$

0.31



$

0.35



(11.4)

%


$

1.07



$

1.49



(28.2)

%



AFFO (2)

$

0.25



$

0.35



(28.6)

%


$

0.83



$

1.02



(18.6)

%



Dividends (3)

$

0.175



$

0.2625



(33.3)

%


$

0.7875



$

1.0475



(24.8)

%
















(1) 

Per weighted average share of Common Stock outstanding for the periods indicated.

(2) 

FFO, Core FFO and AFFO results are presented per basic weighted average share of Common Stock and Class A Unit in our Operating Partnership outstanding for the periods indicated. See Reconciliations of FFO Attributable to Common Stockholders and Unitholders, Core FFO and AFFO to Net Income (Loss) Attributable to Common Stockholders and Definitions of Non-GAAP Measures.

(3)

Per share of Common Stock and Class A Unit outstanding.

Financial

  • Our total revenues for the year ended December 31, 2020 increased 6.8% to approximately $502.2 million from the year ended December 31, 2019, largely due to incremental revenues from newly acquired real estate assets. Our total revenues declined for the quarter ended December 31, 2020 versus the 2019 period due to the sale on November 3, 2020 of our eight student housing properties.
  • Our net loss per share was $(0.77) and $(0.71) for the three-month periods ended December 31, 2020 and 2019, respectively. Funds From Operations, or FFO, was $(0.20) and $0.31 per weighted average share of Common Stock and Class A Unit outstanding for the three months ended December 31, 2020 and 2019, respectively. The decline in FFO per share was driven by:
    • deemed dividends resulting from our call of preferred stock and other cash redemptions of preferred stock in the fourth quarter 2020 that totaled approximately $0.49 per share;
    • decreased interest revenue from our smaller portfolio of real estate loan investments and lines of credit of approximately $0.06 per share; and
    • a gain from the sale of mortgage-backed securities in 2019 which did not recur in 2020 of approximately $0.03 per share;
    • partially offset by an increase of approximately $0.06 per share from improved property operational results and acquisitions.
       
  • Our Core FFO per share result increased to $0.31, up 19.2% from $0.26 for the third quarter 2020, primarily due to:
    • higher purchase option termination revenue of approximately $0.02 per share;
    • land easement proceeds received in the fourth quarter 2020 of approximately $0.01 per share; and
    • reduced monthly preferred stock dividends following the call of 208,786 shares of preferred stock of approximately $0.01 per share.
       
  • Our AFFO per share increased to $0.25 for the fourth quarter 2020 from $0.07 for the third quarter 2020, primarily due to:
    • an increase of accrued interest received of approximately $0.07 per share;
    • higher purchase option termination revenue of approximately $0.02 per share;
    • land easement proceeds received in the fourth quarter 2020 of approximately $0.01 per share;
    • reduced monthly preferred stock dividends following the call of 208,786 shares of preferred stock of approximately $0.01 per share; and
    • lower recurring capital expenditures on our real estate properties of approximately $0.02 per share.
       
  • Our Core FFO payout ratio to Common Stockholders and Unitholders was approximately 57.9% and our Core FFO payout ratio to our preferred stockholders was approximately 78.4% for the fourth quarter 2020. (A)
  • Our AFFO payout ratio to our preferred stockholders improved to approximately 81.7% for the fourth quarter 2020 from 90.9% for the third quarter 2020.(A) Our fourth quarter 2020 AFFO payout ratio reflects an increase of accrued interest received on our real estate loan investment portfolio of approximately $3.5 million versus the third quarter 2020. We have approximately $22.5 million of accrued interest revenue on our real estate loan investment portfolio, that will positively impact AFFO when collected.
  • As of December 31, 2020, our total assets were approximately $4.3 billion, a decrease from our total assets of approximately $4.8 billion at December 31, 2019 that mainly resulted from the sale of our student housing portfolio during the fourth quarter 2020 and the utilization of proceeds to fund a call of 208,786 shares of our preferred stock.

(A)

We calculate the Core FFO and AFFO payout ratios to Common Stockholders as the ratio of Common Stock dividends and distributions to Core FFO and AFFO. We calculate the Core FFO and AFFO payout ratios to preferred stockholders as the ratio of Preferred Stock dividends to the sum of Preferred Stock dividends and Core FFO and AFFO. Since our operations resulted in a net loss from continuing operations for the periods presented, a payout ratio based on net loss is not calculable.  See Definitions of Non-GAAP Measures.

 

The following chart details monthly cash collections of rental revenues before and after the effect of rent deferrals across all our operating business lines as of February 25, 2021:



Cash Collections of 2020 Recurring Rental Revenues (1)

Unadjusted for rent
deferrals:


First
quarter


Second
quarter


Third
quarter


October


November


December














Multifamily


99.9

%


98.8

%


99.0

%


99.0

%


99.1

%


99.1

%

Office


99.9

%


98.1

%


99.7

%


99.9

%


100.0

%


99.4

%

Grocery-anchored retail (2)


99.5

%


91.7

%


95.9

%


97.3

%


97.2

%


97.8

%














 



Cash Collections of 2020 Recurring Rental Revenues (1)

Adjusted for rent deferrals:


First
quarter


Second

quarter


Third
quarter


October


November


December














Multifamily


99.9

%


99.4

%


99.0

%


99.0

%


99.1

%


99.1

%

Office


99.9

%


99.9

%


100.0

%


99.9

%


100.0

%


99.4

%

Grocery-anchored retail (2)


99.6

%


96.8

%


97.6

%


98.2

%


98.0

%


97.9

%














(1)

Percent of revenue billed includes recurring charges for base rent, operating expense escalations, pet, garage, parking and storage rent, as well as receivables from U.S. Government tenants, from which collection is reasonably assured.

(2)

Includes an investment in an unconsolidated joint venture that is not prorated for our ownership percentage.

 

The following chart details monthly occupancy and percent leased rates across all our operating business lines:



2020 Monthly Occupancy and Percentages Leased



First
quarter


Second
quarter


Third
quarter


October


November


December














Occupancy:













Multifamily (stabilized) (1)


95.5

%


94.7

%


95.6

%


95.4

%


95.8

%


95.6

%

Percent leased: (2)













Office


96.7

%


96.2

%


95.5

%


95.4

%


95.4

%


94.7

%

Grocery-anchored retail (3)


92.6

%


92.7

%


92.5

%


92.4

%


91.1

%


91.0

%



(1)  

For quarterly periods, calculated as the average of the number of occupied units on the 20th day of each of the trailing three months from the period end date.

(2)

Percent of total area leased as of the period end date.

(3)

Includes an investment in an unconsolidated joint venture that is not prorated for our ownership percentage.

Operational

  • Our multifamily communities' same store rental and other property revenues increased 0.6% and our same store net operating income increased 0.7% for the year ended December 31, 2020 versus 2019. For the fourth quarter, same store revenues increased 0.1% and same store net operating income decreased 1.9%. Real estate taxes and insurance costs increased 22% and 24%, respectively for the quarter and 6% and 26% respectively for the year to date periods in 2020 due to our increased exposure from property tax judgements that are currently in litigation or under appeal and from increased insurance costs related to adjustments for replacement cost underwriting results. Decreases in property operating and maintenance expense resulted from cost savings realized from the absence of property management fees to our Former Manager following Internalization and reduced advertising and marketing expenditures.
  • We collected 99% of rental revenues from residents in our multifamily communities for each month in 2020.
  • Our average recurring rental revenue collections before and after any effect of rent deferrals for the fourth quarter 2020 were approximately 99.1% and 99.1% for multifamily communities, 97.4% and 98.1% for grocery-anchored retail properties and 99.7% and 99.7% for office properties, respectively. Rent deferments provided to our residents and tenants are limited and are primarily related to a change of timing of rent payments with no significant changes to total payments or term.
  • As of December 31, 2020, we have deferred $1.9 million of retail recurring rental revenue, or approximately 2.7% cumulatively over the last three quarters. Including this deferred rent, we have accounted for 97.5%, 97.2% and 96.4% of fourth quarter, third quarter and second quarter retail recurring rental revenue, respectively. In addition to the deferrals, we granted approximately $542,000 of Covid-related rental abatements, or approximately 0.8% of retail recurring rental revenues cumulatively over the last three quarters. These rental abatements were generally accompanied by an increase in the tenant's lease term or the lease terms were amended to be more favorable to us. Our total retail reserves held steady at $2.5 million, or 2.3% of total retail revenues year to date, which is 0.6% of total company rental and other property revenues.
  • During the fourth quarter 2020, we received the full principal amounts totaling $44.6 million from the repayment of the Sanibel Straights, E-Town and Solis Kennesaw II real estate loan investments, plus approximately $4.2 million of deferred interest revenue from these loans. These transactions collectively returned $48.8 million of capital to us for investment during the fourth quarter.
  • For the full year 2020, we originated three real estate investment loans with a total commitment of $44.1 million.
  • As of December 31, 2020, the average age of our multifamily communities was approximately 6.3 years, which is the youngest in the public multifamily REIT industry.
  • As of December 31, 2020, all of our owned multifamily communities had achieved stabilization except for our two fourth quarter acquisitions, which we define as reaching 93% physical occupancy for three full months in a quarter. One fourth quarter multifamily acquisition will achieve stabilization on March 31, 2021, at which time we will have owned it for a full fiscal quarter.
  • The physical occupancy of our same-store multifamily communities increased to 95.4% at December 31, 2020 from 95.3% at December 31, 2019.

Financing and Capital Markets

  • As of December 31, 2020, approximately 97.4% of our permanent property-level mortgage debt has fixed interest rates and approximately 0.8% has variable interest rates which are capped. We believe we are well protected against potential increases in market interest rates. Our overall weighted average interest rate for our mortgage debt portfolio was 3.55% for multifamily communities, 4.13% for office properties, 3.91% for grocery-anchored retail properties and 3.77% in the aggregate.
  • At December 31, 2020, our leverage, as measured by the ratio of our debt to the undepreciated book value of our total assets, was approximately 55.6%.
  • At December 31, 2020, we had $178.0 million available to be drawn on our revolving line of credit and approximately $75.7 million of cash and restricted cash on hand. 
  • During the fourth quarter 2020, we issued and sold an aggregate of 52,333 shares of Preferred Stock and redeemed an aggregate of 49,105 shares of Preferred Stock, resulting in a net issuance of 3,228 shares of Preferred Stock. Also during the fourth quarter 2020, we called 208,786 shares of Preferred Stock for a net decrease of 205,558 shares of Preferred Stock outstanding and a net cash disbursement of approximately $209.3 million from these transactions.

Significant Transactions

  • On November 3, 2020, we announced via a press release the closing on that day of the sale of all of our student housing properties and one student housing related real estate loan investment to an unrelated third party for a sales price of $478.7 million.
  • During the fourth quarter 2020, we acquired The Blake, a 281-unit multifamily community located in Orlando, Florida and The Menlo, a 332-unit multifamily community located in Jacksonville, Florida.
  • On November 12, 2020, we closed on the sale of the Avenues at Creekside, a 395-unit multifamily community located in San Antonio, Texas that resulted in a gain of approximately $17.3 million.
  • On November 19, 2020, we announced an approval by our common stockholders of a reduction of our call option on our Series A Redeemable Preferred Stock from 10 years to 5 years.
  • On November 19, 2020, we announced a call of approximately $208.8 million of our Series A Redeemable Preferred Stock.
  • During the fourth quarter 2020, we received approximately $48.8 million in full satisfaction of the principal and all interest due on four previously issued real estate loan investments.

Real Estate Assets

At December 31, 2020, our portfolio of owned real estate assets and potential additions from purchase options we held from our real estate loan investments consisted of:











Owned as of
December 31,
2020 (1)


Potential
additions from
real estate loan
investment
portfolio (2) (3)


Potential total



Residential properties:








Properties

37



10



47




Units

11,143



2,808



13,951




Grocery-anchored shopping centers:








Properties

54





54




Gross leasable area (square feet)

6,208,278





6,208,278




Office buildings:








Properties

9



1



10




Rentable square feet

3,169,000



195,000



3,364,000




Development properties

2





2




Rentable square feet

35,000





35,000




(1)

One multifamily community, two grocery-anchored shopping centers and two office buildings are owned through consolidated joint ventures. One grocery-anchored shopping center is an investment in an unconsolidated joint venture.

(2)

We evaluate each project individually and we make no assurance that we will acquire any of the underlying properties from our real estate loan investment portfolio.

(3)

The Company has terminated various purchase option agreements in exchange for termination fees. These properties are excluded from the potential additions from our real estate loan investment portfolio.

Same-Store Multifamily Communities Financial Data

The following chart presents same-store operating results for the Company's multifamily communities. We define our population of same-store multifamily communities as those that have achieved occupancy at or above 93% for all three consecutive months within a single quarter (stabilized) before the beginning of the prior year and that have been owned for at least 15 full months as of the end of the first quarter of the current year, enabling comparisons of the current year quarterly and annual reporting periods to the prior year comparative periods. The Company excludes the operating results of properties for which construction of adjacent phases has commenced and properties which are undergoing significant capital projects, have sustained significant casualty losses, or are being marketed for sale as of the end of the reporting period. For the periods presented, same-store operating results consist of the operating results of the following multifamily communities containing an aggregate 8,299 units, or 74.5% of our multifamily units:

Aster at Lely Resort


Avenues at Cypress


Avenues at Northpointe

Citi Lakes


Lenox Village


Retreat at Lenox Village

Overton Rise


Sorrel


Venue at Lakewood Ranch

Citrus Village


525 Avalon Park


Vineyards

Founders Village


Retreat at Greystone


City Vista

Summit Crossing I


Luxe at Lakewood Ranch


Adara at Overland Park

City Park View


Summit Crossing II


Aldridge at Town Village

Reserve at Summit Crossing


Crosstown Walk


Claiborne Crossing

Green Park


Colony at Centerpointe


Lux at Sorrel



Vestavia Reserve



 

Same-store net operating income is a non-GAAP measure that is most directly comparable to net income (loss), as shown in the reconciliations below. See Definitions of Non-GAAP Measures.

Reconciliation of Net Income (Loss) to Multifamily Communities' Same-Store Net Operating Income (NOI)








Three months ended:

(in thousands)


12/31/2020


12/31/2019






Net income (loss)


$

17,472



$

(1,364)


Add:





Equity stock compensation


586



301


Depreciation and amortization


48,581



47,874


Interest expense


27,950



28,798


Management fees




8,867


Corporate G&A and other

7,700



1,603


(Income) loss from unconsolidated joint venture


194




Management Internalization


288



1,844


Allowance for expected credit losses


640



2,038


Waived asset management and general and administrative expense fees




(3,259)


Less:





Interest revenue on notes receivable


12,115



13,553


Interest revenue on related party notes receivable


485



1,966


Miscellaneous revenues


977



1,000


Change in fair value of net assets of consolidated





VIEs from mortgage-backed pools




515


Gains on sales of real estate and mortgage-backed securities, net


20,195



1,563


Gain (loss) on sale of real estate loan investment and land condemnation, net


(11)



207







Property net operating income


69,650



67,898


Less:





Non-same-store property revenues


(71,468)



(72,312)


Add:





Non-same-store property operating expenses

22,591



25,579






Same-store net operating income


$

20,773



$

21,165







 

Multifamily Communities' Same Store Net Operating Income












Three months ended:





(in thousands)


12/31/2020


12/31/2019


$ change


% change

Revenues:









Rental and other property revenues


$

36,077



$

36,036



$

41



0.1

%










Operating expenses:









Property operating and maintenance


6,078



6,843



(765)



(11.2)

%

Payroll


2,887



2,849



38



1.3

%

Real estate taxes and insurance


6,339



5,179



1,160



22.4

%

Total operating expenses


15,304



14,871



433



2.9

%










Same-store net operating income


$

20,773



$

21,165



$

(392)



(1.9)

%










Same-store average physical occupancy


95.6

%


95.1

%














Corporate level expenses related to the management and operations of the Multifamily and Student housing property portfolios are allocated
on a per unit basis to Property NOI and are included in Multifamily Same Store NOI.

 

Reconciliation of Net Income (Loss) to Multifamily Communities' Same-Store Net Operating Income (NOI)








Years ended:

(in thousands)


12/31/2020


12/31/2019






Net loss


$

(181,603)



$

(7,458)


Add:





Equity stock compensation


1,644



1,223


Depreciation and amortization


201,677



185,065


Interest expense


118,558



111,964


Management fees


3,099



33,516


Corporate G&A and other

30,809



5,773


(Income) loss from unconsolidated joint venture


314




Management Internalization


180,116



2,987


Allowance for expected credit losses


6,103



2,038


Waived asset management and general and administrative expense fees


(1,136)



(11,764)


Less:





Interest revenue on notes receivable


46,610



49,542


Interest revenue on related party notes receivable


4,235



11,946


Miscellaneous revenues


5,537



2,023


Change in fair value of net assets of consolidated





VIEs from mortgage-backed pools




1,831


Loss on extinguishment of debt


(6,674)



(84)


Gains on sales of real estate and mortgage-backed securities, net


23,456



1,567


Gains on sale of real estate loan investment and land condemnation


517



954







Property net operating income


285,900



255,565


Less:





Non-same-store property revenues


(302,300)



(264,292)


Add:





Non-same-store property operating expenses

99,950



91,729






Same-store net operating income


$

83,550



$

83,002







 

Multifamily Communities' Same Store Net Operating Income












Years ended:





(in thousands)


12/31/2020


12/31/2019


$ change


% change

Revenues:









Rental and other property revenues


$

143,514



$

142,624



$

890



0.6

%










Operating expenses:









Property operating and maintenance


24,714



26,439



(1,725)



(6.5)

%

Payroll


11,364



11,217



147



1.3

%

Real estate taxes and insurance


23,886



21,966



1,920



8.7

%

Total operating expenses


59,964



59,622



342



0.6

%










Same-store net operating income


$

83,550



$

83,002



$

548



0.7

%










Corporate level expenses related to the management and operations of the multifamily and student housing property portfolios are allocated on
a per unit basis to property NOI and are included in multifamily same store NOI.

 

Dividends
Quarterly Dividends on Common Stock and Class A OP Units

On November 5, 2020, our board of directors declared a quarterly dividend on our Common Stock of $0.175 per share, that was paid on January 15, 2021 to stockholders of record on December 15, 2020. In conjunction with the Common Stock dividend, our operating partnership declared a distribution on its Class A Units of $0.175 per unit for the fourth quarter 2020, which was paid on January 15, 2021 to all Class A Unit holders of record as of December 15, 2020.

Monthly Dividends on Preferred Stock

We declared monthly dividends of $5.00 per share on our Series A Redeemable Preferred Stock, which totaled approximately $52.7 million for the fourth quarter 2020 and represents a 6% annual yield. We declared monthly dividends of $5.00 per share on our Series A1 Redeemable Preferred Stock, which totaled approximately $1.9 million for the fourth quarter 2020 and also represents a 6% annual yield. We declared dividends totaling approximately $1.5 million on our Series M Redeemable Preferred Stock, or mShares, for the fourth quarter 2020. The mShares have a dividend rate that escalates from 5.75% in year one of issuance to 7.50% in year eight and thereafter. We declared dividends totaling approximately $271,000 on our Series M1 Redeemable Preferred Stock for the fourth quarter 2020. The Series M1 Redeemable Preferred Stock has a dividend rate that escalates from 6.1% in year one of issuance to 7.1% in year ten and thereafter.

Subsequent to Quarter End

Between January 1, 2021 and February 28, 2021, we issued 35,040 shares of Series A1 Preferred Stock and collected net proceeds of approximately $31.5 million after commissions and fees and we issued 2,858 shares of Series M1 Preferred Stock and collected net proceeds of approximately $2.8 million after commissions and fees. During the same period, we redeemed 17,363 shares of Series A Preferred Stock, 750 shares of Series M1 Preferred Stock and 461 shares of Series M Preferred Stock, or mShares.

On February 24, 2021, our board of directors declared a quarterly dividend on our Common Stock of $0.175 per share, payable on April 15, 2021 to stockholders of record on March 15, 2021.

Conference Call and Supplemental Data

We will hold our quarterly conference call on Tuesday, March 2, 2021 at 11:00 a.m. Eastern Time to discuss our fourth quarter and year ended 2020 results. To participate in the conference call, please dial in to the following:

Live Conference Call Details
Dial-in Number: 1-877-883-0383
International Dial-in Number: 1-412-902-6506
Company: Preferred Apartment Communities, Inc.
Date: Tuesday, March 2, 2021
Time: 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time)
Passcode: 7003443

The live broadcast of PAC's fourth quarter and year ended 2020 conference call will be available online on a listen-only basis at the company's website, www.pacapts.com, under "Investors" and then click on the "News and Events" heading.  

A replay of the call will be archived on PAC's' website under Investors/News and Events/Events.

2021 Guidance:   

Net income (loss) per share  - We are continuing to add properties and real estate loan investments to our real estate portfolio and the specific timing of the closing of acquisitions is difficult to predict. 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 FFO per share to this measure.

Core FFO - our forecasted range for the full year 2021 is $0.81 - $0.89 per weighted average share and unit.

Assumptions for our 2021 Core FFO guidance:

  • Same-store NOI growth for multifamily communities of 1.5% - 3.0%
  • Real estate loan investment originations of $50 million - $100 million

This guidance also includes the impact of a material decline in purchase option termination revenues. Please note that our guidance does not include any additional calls of our Series A Preferred Stock. We will update this guidance if, as and when it becomes appropriate.

We expect the growth in NOI for multifamily communities and the new investment loan originations to be weighted towards the second half of 2021. We will be active in the acquisition market for multifamily assets but will maintain investment discipline in a very competitive environment.

AFFO, Core FFO and FFO are calculated after deductions for all preferred stock dividends. Reconciliations of net income (loss) attributable to common stockholders to FFO, Core FFO and AFFO for the three-months and years ended December 31, 2020 and 2019 appear in the attached report, as well as on our website using the following link:

https://investors.pacapts.com/q4-2020-quarterly-supplemental-financial-data

Forward-Looking Statements

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:  Estimates of future earnings, guidance, goals and performance are, by definition, and certain other statements in this Earnings Release and Supplemental Financial Data Report may constitute, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance, achievements or transactions to be materially different from the results, guidance, goals, performance, achievements or transactions expressed or implied by the forward-looking statements. These statements may be identified  by the use of forward-looking terminology such as "may," "trend," "will," "expects," "plans," "estimates," "anticipates," "projects," "intends," "believes," "strategy," "goals," "objectives," "outlook" and similar expressions. These risks, uncertainties and contingencies include, but are not limited to, (a) the impact of the COVID-19 pandemic and related federal, state and local government actions on PAC's business operations and the economic conditions in the markets in which PAC operates; (b) PAC's ability to mitigate the impacts arising from COVID-19 and (c) those disclosed in PAC's filings with the SEC. Factors that impact such forward-looking statements include, among others, our business and investment strategy; legislative or regulatory actions; the state of the U.S. economy generally or in specific geographic areas; economic trends and economic recoveries; changes in operating costs, including real estate taxes, utilities and insurance costs; our ability to obtain and maintain debt or equity financing; financing and advance rates for our target assets; our leverage level; changes in the values of our assets; the occurrence of natural or man-made disasters; availability of attractive investment opportunities in our target markets; our ability to maintain our qualification as a real estate investment trust, or REIT, for U.S. federal income tax purposes; availability of quality personnel; our understanding of our competition and market trends in our industry; and interest rates, real estate values, the debt securities markets and the general economy.

Except as otherwise required by the federal securities laws, we assume no liability to update the information in this Earnings Release and Supplemental Financial Data Report.

We refer you to the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2020 that was filed with the SEC on March 1, 2021, which discuss various factors that could adversely affect our financial results. Such risk factors and information may be updated or supplemented by our Form 10-K, Form 10-Q and Form 8-K filings and other documents filed from time to time with the SEC.

COVID-19

Our percentages of rent collected have stabilized at or near pre-pandemic levels during the fourth quarter 2020. While the impacts of COVID-19 are continuing into 2021, the effects on our operations have been manageable and we believe this condition will persist, barring a dramatic change in the trajectory of the pandemic.

Additional Information  

The SEC has declared effective the registration statement filed by the Company for each of our public offerings. Before you invest, you should read the final prospectus, and any prospectus supplements forming a part of the registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the offering. In particular, you should carefully read the risk factors described in the final prospectus and in any related prospectus supplement and in the documents incorporated by reference in the final prospectus and any related prospectus supplement. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the Company or its dealer manager, Preferred Capital Securities, LLC, will arrange to send you a prospectus with respect to the Series A1/M1 Offering upon request by contacting John A. Isakson at (770) 818-4109, 3284 Northside Parkway NW, Suite 150, Atlanta, Georgia 30327.

The final prospectus for the Series A1/M1 Offering, dated October 22, 2019, can be accessed through the following link:

https://www.sec.gov/Archives/edgar/data/1481832/000148183219000097/a424b5-2019seriesamshares.htm

 

Preferred Apartment Communities, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)










Three months ended
December 31,


Years ended December 31,

(In thousands, except per-share figures)


2020


2019


2020


2019

Revenues:









Rental and other property revenues


$

107,544



$

108,347



$

445,815



$

406,916


Interest income on loans and notes receivable


12,115



13,553



46,610



49,542


Interest income from related parties


485



1,966



4,235



11,946


Miscellaneous revenues


977



1,000



5,537



2,023











Total revenues


121,121



124,866



502,197



470,427











Operating expenses:









Property operating and maintenance


16,336



16,608



69,255



59,845


Property salary and benefits

5,412



5,848



22,377



20,693


Property management costs

961



3,807



4,989



13,981


Real estate taxes and insurance


15,185



14,186



63,294



56,832


General and administrative


7,700



1,603



30,809



5,773


Equity compensation to directors and executives

586



301



1,644



1,223


Depreciation and amortization


48,581



47,874



201,677



185,065


Asset management and general and administrative expense









fees to related party




8,867



3,099



33,516


Allowance for expected credit losses


640



2,038



6,103



2,038


Management Internalization expense


288



1,844



180,116



2,987











Total operating expenses


95,689



102,976



583,363



381,953


Waived asset management and general and administrative








expense fees



(3,259)



(1,136)



(11,764)











Net operating expenses


95,689



99,717



582,227



370,189


Operating income (loss) before gain on sale of real estate and loss from









unconsolidated joint venture


25,432



25,149



(80,030)



100,238


Loss from unconsolidated joint venture


(194)





(314)




Gains on sales of real estate and mortgage-backed securities, net


20,195



1,563



23,456



1,567


Operating income (loss)


45,433



26,712



(56,888)



101,805











Interest expense


27,950



28,798



118,558



111,964


Change in fair value of net assets of consolidated









VIEs from mortgage-backed pools




515





1,831


Loss on extinguishments of debt






(6,674)



(84)


Gain (loss) on sale of real estate loan investment and land condemnation


(11)



207



517



954











Net income (loss)


17,472



(1,364)



(181,603)



(7,458)


Net (income) loss attributable to non-controlling interests

300



76



3,815



214











Net income (loss) attributable to the Company


17,772



(1,288)



(177,788)



(7,244)











Dividends declared to preferred stockholders


(56,307)



(31,245)



(160,908)



(113,772)


Earnings attributable to unvested restricted stock


(96)



(3)



(205)



(17)











Net loss attributable to common stockholders


$

(38,631)



$

(32,536)



$

(338,901)



$

(121,033)











Net loss per share of Common Stock available to








 common stockholders, basic and diluted


$

(0.77)



$

(0.71)



$

(6.95)



$

(2.73)











Weighted average number of shares of Common Stock outstanding,








basic and diluted


49,912



45,934



48,743



44,265


 

Reconciliation of FFO Attributable to Common Stockholders and Unitholders, Core FFO and AFFO

to Net (Loss) Income Attributable to Common Stockholders (A)














Three months ended December 31,

(In thousands, except per-share figures)



2020


2019









Net loss attributable to common stockholders (See note 1)

$

(38,631)



$

(32,536)










Add:

Depreciation of real estate assets


39,447



38,626



Amortization of acquired intangible assets and deferred leasing costs

8,742



8,588



Net gain (loss) attributable to Class A Unitholders (See note 2)

260



(6)



Gain on sale of real estate

(20,195)




FFO attributable to common stockholders and unitholders

(10,377)



14,672











Acquisition and pursuit costs

2





Loan cost amortization on acquisition term notes and loan coordination fees (See note 3)

451



604



Contingent management fees recognized upon property sales



11



Internalization costs (See note 4)

288



1,844



Deemed dividends for redemptions of and non-cash dividends on preferred stock

24,593



206



Expenses incurred on the call of preferred stock (See note 5)

520





Expenses related to the COVID-19 global pandemic (See note 6)

77





Earnest money forfeited by prospective asset purchaser



(1,000)


Core FFO attributable to common stockholders and unitholders

15,554



16,337








Add:

Non-cash equity compensation to directors and executives


586



301



Non-cash (income) expense for current expected credit losses (See note 7)

155



1,400



Amortization of loan closing costs (See note 8)


1,255



1,160



Depreciation/amortization of non-real estate assets


541



488



Net loan origination fees received (See note 9)


16



109



Deferred interest income received (See note 10)


3,852



5,436



Cash received for sale of K Program securities in excess of noncash revenues



1,474



Amortization of lease inducements (See note 11)


448



439



Cash received in excess of amortization of purchase option





termination revenues (See note 12)

560



49



Earnest money forfeited by prospective asset purchaser



1,000


Less:

Non-cash loan interest income (See note 10)


(3,193)



(3,686)



Cash paid for loan closing costs

(16)





Amortization of acquired real estate intangible liabilities and SLR (See note 13)

(4,333)



(4,268)



Amortization of deferred revenues (See note 14)


(941)



(941)



Normally recurring capital expenditures (See note 15)

(1,903)



(2,765)










AFFO attributable to common stockholders and Unitholders

$

12,581



$

16,533








Common Stock dividends and distributions to Unitholders declared:





Common Stock dividends



$

8,877



$

12,156



Distributions to Unitholders (See note 2)


130



225



Total




$

9,007



$

12,381










Common Stock dividends and Unitholder distributions per share


$

0.1750



$

0.2625










FFO per weighted average basic share of Common Stock and Unit outstanding

$

(0.20)



$

0.31


Core FFO per weighted average basic share of Common Stock and Unit outstanding

$

0.31



$

0.35


AFFO per weighted average basic share of Common Stock and Unit outstanding

$

0.25



$

0.35






Weighted average shares of Common Stock and Units outstanding: (See note 16)





Basic:








Common Stock



49,912



45,934



Class A Units




731



856



Common Stock and Class A Units


50,643



46,790











Diluted Common Stock and Class A Units (See note 17)


50,708



46,894










Actual shares of Common Stock outstanding, including 548 and 13 unvested shares




 of restricted Common Stock at December 31, 2020 and 2019, respectively.

50,542



46,457


Actual Class A Units outstanding at December 31, 2020 and 2019, respectively.

649



856



Total




51,191



47,313


 

See Notes to Reconciliation of FFO, Core FFO and AFFO to Net Income (Loss) Attributable to Common Stockholders.



Reconciliation of FFO Attributable to Common Stockholders and Unitholders, Core FFO and AFFO

to Net (Loss) Income Attributable to Common Stockholders (A)






Years ended December 31,

(In thousands, except per-share figures)



2020


2019









Net loss attributable to common stockholders (See note 1)

$

(338,901)



$

(121,033)










Add:

Depreciation of real estate assets


161,500



148,034



Amortization of acquired intangible assets and deferred leasing costs

37,675



34,990



Net loss attributable to Class A Unitholders (See note 2)

(3,133)



(144)



Gain on sale of real estate

(23,456)




FFO attributable to common stockholders and unitholders

(166,315)



61,847



Acquisition and pursuit costs

383





Loan cost amortization on acquisition term notes and loan coordination fees (See note 3)

2,162



2,095



Contingent management fees recognized upon property sales



11



Payment of costs related to property refinancing

7,372



594



Internalization costs (See note 4)

180,116



2,987



Deemed dividends for redemptions of and non-cash dividends on preferred stock

30,970



577



Expenses incurred on the call of preferred stock (See note 5)

566





Expenses related to the COVID-19 global pandemic (See note 6)

663





Earnest money forfeited by prospective asset purchaser

(2,750)



(1,000)


Core FFO attributable to common stockholders and unitholders

53,167



67,111


Add:

Non-cash equity compensation to directors and executives

1,644



1,223



Non-cash (income) expense for current expected credit losses (See note 7)

3,802



1,400



Amortization of loan closing costs (See note 8)


4,886



4,618



Depreciation/amortization of non-real estate assets


2,334



1,869



Net loan origination fees received (See note 9)


898



783



Deferred interest income received (See note 10)


12,504



10,514



Amortization of lease inducements (See note 11)


1,782



1,734



Cash received in excess of (exceeded by) amortization of purchase option





 termination revenues (See note 12)

464



(2,321)



Non-cash revenues from mortgage-backed securities



778



Earnest money forfeited by prospective asset purchaser

2,750



1,000


Less:

Non-cash loan interest income (See note 10)


(12,638)



(14,431)



Cash paid for loan closing costs

(122)



(37)



Amortization of acquired real estate intangible liabilities and SLR (See note 13)

(18,017)



(16,643)



Amortization of deferred revenues (See note 14)


(3,762)



(3,762)



Normally recurring capital expenditures (See note 15)

(8,428)



(7,887)










AFFO attributable to common stockholders and Unitholders

$

41,264



$

45,949








Common Stock dividends and distributions to Unitholders declared:





Common Stock dividends



$

38,868



$

46,755



Distributions to Unitholders (See note 2)


593



908



Total




$

39,461



$

47,663










Common Stock dividends and Unitholder distributions per share


$

0.7875



$

1.0475










FFO per weighted average basic share of Common Stock and Unit outstanding

$

(3.36)



$

1.37


Core FFO per weighted average basic share of Common Stock and Unit outstanding

$

1.07



$

1.49


AFFO per weighted average basic share of Common Stock and Unit outstanding

$

0.83



$

1.02










Weighted average shares of Common Stock and Units outstanding: (See note 16)





Basic:








Common Stock



48,743



44,265



Class A Units




765



870



Common Stock and Class A Units


49,508



45,135











Diluted Common Stock and Class A Units (See note 17)

49,549



45,772










Actual shares of Common Stock outstanding, including 548 and 13 unvested shares




 of restricted Common Stock at December 31, 2020 and 2019, respectively.

50,542



46,457


Actual Class A Units outstanding at December 31, 2020 and 2019, respectively.

649



856



Total




51,191



47,313










 

See Notes to Reconciliation of FFO, Core FFO and AFFO to Net Income (Loss) Attributable to Common Stockholders.

 

Notes to Reconciliations of FFO Attributable to Common Stockholders and Unitholders, Core FFO and AFFO to

Net Loss Attributable to Common Stockholders



1)

Rental and other property revenues and property operating expenses for the three-months and year ended December 31, 2020 include activity for the properties acquired during the period only from their respective dates of acquisition. In addition, these periods include activity for the properties acquired since December 31, 2019. Rental and other property revenues and expenses for the three-months and year ended December 31, 2019 include activity for the acquisitions made during that period only from their respective dates of acquisition.



2)

Non-controlling interests in Preferred Apartment Communities Operating Partnership, L.P., or our Operating Partnership, consisted of a total of 648,936 Class A Units as of December 31, 2020. Included in this total are 419,228 Class A Units which were granted as partial consideration to the seller in conjunction with the seller's contribution to us on February 29, 2016 of the Wade Green grocery-anchored shopping center. The remaining Class A units were awarded primarily to our key executive officers. The Class A Units are apportioned a percentage of our financial results as non-controlling interests. The weighted average ownership percentage of these holders of Class A Units was calculated to be 1.44% and 1.54% for the three-month periods ended December 31, 2020 and 2019, respectively.



3)

We paid loan coordination fees to Preferred Apartment Advisors, LLC, or our Former Manager, to reflect the administrative effort involved in arranging debt financing for acquired properties prior to the Internalization. The fees were calculated as 0.6% of the amount of any mortgage indebtedness on newly-acquired properties or refinancing and are amortized over the lives of the respective mortgage loans. This non-cash amortization expense is an addition to FFO in the calculation of Core FFO and AFFO. At December 31, 2020, aggregate unamortized loan coordination fees were approximately $11.7 million, which will be amortized over a weighted average remaining loan life of approximately 10.5 years.



4)

This adjustment reflects the add-back of (i) consideration paid to the owners of the Former Manager and Former Sub-Manager, (ii) accretion of the discount on the deferred liability payable to the owners of the Former Manager and (iii) due diligence and pursuit costs incurred by the Company related to the internalization of the functions performed by the Former Manager.



5)

This adjustment adds back expenses incurred by us to effect an amendment of the Company's charter necessary to allow us to redeem outstanding shares of our Series A Preferred Stock beginning on the fifth anniversary of the date of issuance of the shares of Series A Preferred Stock, rather than the tenth anniversary.



6)

This additive adjustment to FFO consists of non-recurring costs for signage, cleaning and supplies necessary to create and maintain work environments necessary to adhere to CDC guidelines during the current COVID-19 pandemic. Since we do not expect to incur similar costs once the COVID-19 pandemic has subsided, we add these costs back to FFO in our calculation of Core FFO.



7)

Effective January 1, 2020, we adopted ASU 2016-03, which requires us to estimate the amount of future credit losses we expect to incur over the lives of our real estate loan investments at the inception of each loan. This loss reserve may be adjusted upward or downward over the lives of our loans and therefore the aggregate net adjustment for each period could be positive (removing the non-cash effect of a net increase in aggregate loss reserves) or negative (removing the non-cash effect of a net decrease in aggregate loss reserves) in these adjustments to FFO in calculating Core FFO. More information on our expected credit loss reserves may be found in note 4 of our consolidated financial statements.



8)

We incur loan closing costs on our existing mortgage loans, which are secured on a property-by-property basis by each of our acquired real estate assets, and also for occasional amendments to our syndicated revolving line of credit with Key Bank National Association, or our Revolving Line of Credit. These loan closing costs are also amortized over the lives of the respective loans and the Revolving Line of Credit, and this non-cash amortization expense is an addition to FFO in the calculation of AFFO. Neither we nor the Operating Partnership have any recourse liability in connection with any of the mortgage loans, nor do we have any cross-collateralization arrangements with respect to the assets securing the mortgage loans, other than security interests in 49% of the equity interests of the subsidiaries owning such assets, granted in connection with our Revolving Line of Credit, which provides for full recourse liability. At December 31, 2020, unamortized loan costs on all the Company's indebtedness were approximately $31.1 million, which will be amortized over a weighted average remaining loan life of approximately 9.0 years.



9)

We receive loan origination fees in conjunction with the origination of certain real estate loan investments. These fees are then recognized as revenue over the lives of the applicable loans as adjustments of yield using the effective interest method. The total fees received are additive adjustments in the calculation of AFFO. Correspondingly, the amortized non-cash income is a deduction in the calculation of AFFO. Over the lives of certain loans, we accrue additional interest amounts that become due to us at the time of repayment of the loan or refinancing of the property, or when the property is sold. This non-cash interest income is subtracted from Core FFO in our calculation of AFFO. The amount of additional accrued interest becomes an additive adjustment to FFO once received from the borrower (see note 10).



10)

This adjustment reflects the receipt during the periods presented of additional interest income (described in note 9 above) which was earned and accrued on various real estate loans prior to those periods and previously deducted in our calculation of AFFO.



11)

This adjustment removes the non-cash amortization of costs incurred to induce tenants to lease space in our office buildings and grocery-anchored shopping centers.



12)

Occasionally we receive fees in exchange for the termination of our purchase options related to certain multifamily and student housing properties. These fees are recorded as revenue over the period beginning on the date of termination until the earlier of (i) the maturity of the real estate loan investment and (ii) the sale of the property. The receipt of the cash termination fees are an additive adjustment in our calculation of AFFO and the removal of non-cash revenue from the recognition of the termination fees are a reduction to Core FFO in our calculation of AFFO; both of these adjustments are presented in a single net number within this line. For periods in which recognized termination fee revenues exceeded the amount of cash received, a negative adjustment is shown to Core FFO in our calculation of AFFO; for periods in which cash received exceeded the amount of recognized termination fee revenues, an additive adjustment is shown to Core FFO in our calculation of AFFO.



13)

This adjustment reflects straight-line rent adjustments and the reversal of the non-cash amortization of below-market and above-market lease intangibles, which were recognized in conjunction with our acquisitions and which are amortized over the estimated average remaining lease terms from the acquisition date for multifamily communities and over the remaining lease terms for grocery-anchored shopping center assets and office buildings. At December 31, 2020, the balance of unamortized below-market lease intangibles was approximately $51.9 million, which will be recognized over a weighted average remaining lease period of approximately 8.7 years.



14)

This adjustment removes the non-cash amortization of deferred revenue recorded by us in conjunction with Company-owned lessee-funded tenant improvements in our office buildings.



15)

We deduct from Core FFO normally recurring capital expenditures that are necessary to maintain our assets' revenue streams in the calculation of AFFO. This adjustment also deducts from Core FFO capitalized amounts for third party costs during the period to originate or renew leases in our grocery-anchored shopping centers and office buildings. This adjustment includes approximately $31,000 and $131,000 of recurring capitalized expenditures incurred at our corporate offices during the three-months and year ended December 31, 2020, respectively. No adjustment is made in the calculation of AFFO for nonrecurring capital expenditures. See Capital Expenditures, Grocery-Anchored Shopping Center Portfolio, and Office Buildings Portfolio sections for definitions of these terms.



16)

Units and Unitholders refer to Class A Units in our Operating Partnership (as defined in note 2), or Class A Units, and holders of Class A Units, respectively. Unitholders include recipients of awards of Class B Units in our Operating Partnership, or Class B Units, for annual service which became vested and earned and automatically converted to Class A Units. Unitholders also include the entity that contributed the Wade Green grocery-anchored shopping center.



17)

Since our AFFO results are positive for the periods reflected, we are presenting recalculated diluted weighted average shares of Common Stock and Class A Units for these periods for purposes of this table, which includes the dilutive effect of common stock equivalents from grants of the Class B Units, warrants included in units of Series A Preferred Stock issued, as well as annual grants of restricted Common Stock and restricted stock units. The weighted average shares of Common Stock outstanding presented on the Consolidated Statements of Operations are the same for basic and diluted for any period for which we recorded a net loss available to common stockholders.


See Definitions of Non-GAAP Measures.

 

Preferred Apartment Communities, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except per-share par values)


December 31,
2020


December 31,
2019

Assets





Real estate 




Land


$

605,282



$

635,757


Building and improvements

3,034,727



3,256,223


Tenant improvements

184,288



167,275


Furniture, fixtures, and equipment

306,725



323,381


Construction in progress

12,269



11,893


Gross real estate

4,143,291



4,394,529


Less: accumulated depreciation

(509,547)



(421,551)


Net real estate

3,633,744



3,972,978


Real estate loan investments, net

279,895



325,790


Real estate loan investments to related parties, net



23,692


Total real estate and real estate loan investments, net

3,913,639



4,322,460







Cash and cash equivalents

28,657



94,381


Restricted cash

47,059



42,872


Notes receivable

1,863



17,079


Note receivable and revolving line of credit due from related party

9,011



24,838


Accrued interest receivable on real estate loans

22,528



25,755


Acquired intangible assets, net of amortization

127,138



154,803


Deferred loan costs on Revolving Line of Credit, net of amortization

714



1,286


Deferred offering costs

4,786



2,147


Tenant lease inducements, net

18,206



19,607


Investment in unconsolidated joint venture


6,657




Tenant receivables and other assets

100,821



65,332







Total assets

$

4,281,079



$

4,770,560







Liabilities and equity




Liabilities




Mortgage notes payable, net of deferred loan costs and mark-to-market adjustment

$

2,594,464



$

2,567,022


Revolving line of credit

22,000




Term note payable, net of deferred loan costs



69,489


Unearned purchase option termination fees

723



2,859


Deferred revenue

36,010



39,722


Accounts payable and accrued expenses

41,912



42,191


Deferred liability to Former Manager

23,335




Contingent liability due to Former Manager

14,814




Accrued interest payable

7,877



8,152


Dividends and partnership distributions payable

20,137



23,519


Acquired below market lease intangibles, net of amortization

51,934



62,611


Prepaid rent, security deposits and other liabilities

29,425



20,879


Total liabilities

2,842,631



2,836,444







Commitments and contingencies




Equity





Stockholders' equity





Series A Redeemable Preferred Stock, $0.01 par value per share; 3,050 shares authorized; 2,226 and 2,161 shares




 issued; 1,735 and 2,028 shares outstanding at December 31, 2020 and December 31, 2019, respectively

17



20


Series A1 Redeemable Preferred Stock, $0.01 par value per share; up to 1,000 shares authorized;




 149 and 5 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively

1




Series M Redeemable Preferred Stock, $0.01 par value per share; 500 shares authorized; 106 shares




  issued; 89 and 103 shares outstanding at December 31, 2020 and December 31, 2019, respectively

1



1


Series M1 Redeemable Preferred Stock, $0.01 par value per share; up to 1,000 shares authorized;




  19 and zero shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively




Common Stock, $0.01 par value per share; 400,067 shares authorized; 49,994 and 46,443 shares issued




and outstanding at December 31, 2020 and December 31, 2019, respectively

500



464


Additional paid-in capital


1,631,646



1,938,057


Accumulated (deficit) earnings


(192,446)



(7,244)


Total stockholders' equity


1,439,719



1,931,298


Non-controlling interest


(1,271)



2,818


Total equity


1,438,448



1,934,116


Total liabilities and equity


$

4,281,079



$

4,770,560




Preferred Apartment Communities, Inc.


Consolidated Statements of Cash Flows


(Unaudited)






Years ended December 31,


(In thousands)


2020


2019


Operating activities:






Net (loss) income


$

(181,603)



$

(7,458)



Reconciliation of net (loss) income to net cash provided by operating activities:





Depreciation and amortization expense

201,677



185,065



Amortization of above and below market leases

(8,021)



(5,765)



Deferred revenues and other non-cash revenues amortization

(5,059)



(6,275)



Purchase option termination fee amortization

(6,536)



(9,111)



Amortization of equity compensation, lease incentives and other non-cash expenses

4,267



3,220



Deferred loan cost amortization

6,855



6,450



Non-cash accrued interest income on real estate loan investments

(12,372)



(13,828)



Receipt of accrued interest income on real estate loan investments

14,391



8,063



Gains on the sales of real estate and mortgage-backed securities

(23,456)



(1,567)



Gains on the sales of real estate loan investments and land condemnation

(517)



(954)



Loss from unconsolidated joint ventures

314





Cash received for purchase option terminations

7,000



3,591



Loss on extinguishment of debt

6,674



84



Noncash settlement of related party line of credit from Internalization

20,864





Non-cash payment of interest on related party line of credit



(637)



Mortgage interest received from consolidated VIEs



18,750



Mortgage interest paid to other participants of consolidated VIEs



(18,750)



Increase in allowance for expected credit losses

6,103



2,038



Changes in operating assets and liabilities:





(Increase) in tenant receivables and other assets

(24,437)



(20,565)



(Increase) in tenant lease incentives

(382)



(644)



Increase in accounts payable and accrued expenses

7,084



1,518



Increase in deferred liability to Former Manager

22,851





Increase in contingent liability

15,000





(Decrease) increase in accrued interest, prepaid rents and other liabilities

(2,805)



2,406



Net cash provided by operating activities

47,892



145,631









Investing activities:






Investments in real estate loans


(59,417)



(98,418)



Repayments of real estate loans


115,726



54,384



Notes receivable issued


(1,044)



(5,692)



Notes receivable repaid


16,293



3,089



Notes receivable issued to and draws on lines of credit by related parties

(9,624)



(40,458)



Repayments of notes receivable and lines of credit by related parties

4,546



35,239



Proceeds from sale of real estate loan investment, net

3,898



747



Origination fees received on real estate loan investments

898



1,565



Origination fees paid to Former Manager on real estate loan investments



(783)



Mortgage principal received from consolidated VIEs



6,570



Purchases of mortgage-backed securities



(30,841)



Proceeds from sales of mortgage-backed securities



79,558



Acquisition of properties


(321,962)



(619,089)



Dispositions of properties

515,477





Proceeds from sale of interest in unconsolidated joint venture

19,221





Return of capital from investment in unconsolidated joint venture

12,250





Receipt of insurance proceeds for capital improvements



746



Proceeds from land condemnation


787



643



Equity investment in property development

(50)



(100)



Capital improvements to real estate assets

(52,809)



(48,071)



Deposits paid on acquisitions

(65)



(146)



Net cash provided by (used in) investing activities

244,125



(661,057)









Financing activities:






Proceeds from mortgage notes payable

469,184



405,430



Repayments of mortgage notes payable

(438,308)



(176,903)



Payments for deposits and other mortgage loan costs

(12,140)



(8,705)



Debt prepayment and other debt extinguishment costs

(5,733)





Payments to real estate loan participants



(5,223)



Proceeds from lines of credit


442,000



265,200



Payments on lines of credit


(420,000)



(322,200)



Proceeds from (repayment of) Term Loan

(70,000)



70,000



Mortgage principal paid to other participants of consolidated VIEs



(6,570)



Proceeds from repurchase agreements



4,857



Repayments of repurchase agreements



(4,857)



Proceeds from sales of preferred stock and Units, net of offering costs

206,381



501,076



Proceeds from sales of Common Stock

4,522





Proceeds from exercises of Warrants

24



11,659



Payments for redemptions of preferred stock

(314,154)



(12,124)



Common Stock dividends paid


(42,100)



(45,439)



Preferred stock dividends and Class A Unit distributions paid

(161,746)



(111,738)



Distributions to non-controlling interests

(161)





Payments for deferred offering costs

(11,509)



(4,013)



Contributions from non-controlling interests

186



4,539



Net cash (used in) provided by financing activities

(353,554)



564,989








Net (decrease) increase in cash, cash equivalents and restricted cash

(61,537)



49,563



Cash, cash equivalents and restricted cash, beginning of year

137,253



87,690



Cash, cash equivalents and restricted cash, end of period

$

75,716



$

137,253






















Real Estate Loan Investments

The following tables present details pertaining to our portfolio of fixed rate, interest-only real estate loan investments.

Project/Property


Location


Maturity
date


Optional
extension
date


Total loan
commitments


Carrying amount (1) as of

December 31,
2020

December 31,
2019


Current /
deferred
interest %
per annum




















Residential properties:






(in thousands)



Palisades


Northern VA


N/A


N/A


$



$



$

17,250



  (2)

Horizon at Wiregrass


Tampa, FL


N/A


N/A






14,976



(3)

Horizon at Wiregrass
Capital


Tampa, FL


N/A


N/A






4,240



(4)

Berryessa


San Jose, CA


2/13/2022


2/13/2023


137,616



126,237



115,819



8.5 / 3

The Anson


Nashville, TN


11/24/2021


11/24/2023


6,240



6,240



6,240



8.5 / 4.5

The Anson Capital


Nashville, TN


11/24/2021


11/24/2023


5,659



4,839



4,440



8.5 / 4.5

Sanibel Straights


Fort Myers, FL


N/A


N/A






8,846



(5)

Sanibel Straights Capital


Fort Myers, FL


N/A


N/A






5,930



(6)

Falls at Forsyth


Atlanta, GA


N/A


N/A






21,513



(7)

Newbergh


Atlanta, GA


3/31/2021


N/A


11,749



11,749



11,699



8.5 / 5.5

Newbergh Capital


Atlanta, GA


3/31/2021


N/A


6,176



6,176



5,653



8.5 / 5.5

V & Three


Charlotte, NC


8/15/2021


8/15/2022


10,336



10,335



10,336



8.5 / 5

V & Three Capital


Charlotte, NC


8/18/2021


8/18/2022


7,338



7,162



6,571



8.5 / 5

Cameron Square


Alexandria, VA


10/11/2021


10/11/2023


21,340



20,874



18,582



8.5 / 3

Cameron Square Capital


Alexandria, VA


10/11/2021


10/11/2023


8,850



8,850



8,235



8.5 / 3

Southpoint


Fredericksburg, VA

2/28/2022


2/28/2024


7,348



7,348



7,348



8.5 / 4

Southpoint Capital


Fredericksburg, VA

2/28/2022


2/28/2024


4,962



4,626



4,245



8.5 / 4

E-Town


Jacksonville, FL


N/A


N/A






14,550



(8)

Vintage Destin


Destin, FL


3/24/2022


3/24/2024


10,763



9,736



8,932



8.5 / 4

Hidden River II


Tampa, FL


10/11/2022


10/11/2024


4,462



4,462



3,012



8.5 / 3.5

Hidden River II Capital


Tampa, FL


10/11/2022


10/11/2024


2,763



2,461



2,258



8.5 / 3.5

Kennesaw Crossing


Atlanta, GA


9/1/2023


9/1/2024


14,810



13,025



7,616



8.5 / 5.5

Vintage Horizon West


Orlando, FL


10/11/2022


10/11/2024


10,900



9,019



8,275



8.5 / 5.5

Chestnut Farms


Charlotte, NC


2/28/2025


N/A


13,372



11,671





8.5 / 5.5

Vintage Jones Franklin


Raleigh, NC


11/14/2023


5/14/2025


10,000



7,904





8.5 / 5.5

Solis Cumming Town















Center


Atlanta, GA


9/3/2024


9/3/2026


20,681



5,584





8.5 / 5.5

Haven 12


Starkville, MS


N/A


N/A






6,116



(9)

Solis Kennesaw II


Atlanta, GA


N/A


N/A






12,489



(10)
















New Market Properties:















Dawson Marketplace


Atlanta, GA


N/A


N/A






12,857



(11)
















Office property:















8West


Atlanta, GA


11/29/2022


11/29/2024


19,193



11,858



4,554



8.5 / 5
























$

334,558



290,156



352,582




Unamortized loan origination fees








(1,194)



(1,476)




Allowances for expected credit losses and doubtful accounts






(9,067)



(1,624)



















Carrying amount










$

279,895



$

349,482




























(1) Carrying amounts presented per loan are amounts drawn.

(2) On July 31, 2020, we received approximately $18.7 million in full satisfaction of the principal and all interest due on the loan.

(3) On March 31, 2020, we received approximately $20.1 million in full satisfaction of the principal, purchase option termination fee, and all interest due on the loan.

(4) On March 31, 2020, we received approximately $5.1 million in full satisfaction of the principal and all interest due on the loan.

(5) On November 30, 2020, we received approximately $11.9 million in full satisfaction of the principal, purchase option termination fee, and all interest due on the loan.

(6) On November 30, 2020, we received approximately $7.3 million in full satisfaction of the principal and all interest due on the loan.

(7) On March 6, 2020, we received approximately $27.0 million in full satisfaction of the principal, purchase option termination fee, and all interest due on the loan.

(8) On December 15, 2020, we received approximately $16.7 million in full satisfaction of the principal and all interest due on the loan.

(9) The Company's Starkville loan had been in default since August 20, 2019 under the terms of the underlying mezzanine loan agreement. The Company recorded
a loan loss reserve related to this loan totaling $1.4 million, reducing its net investment in the Starkville loan from $7.3 million, including accrued interest of $1.2
million, to a carrying amount of $5.9 million as of December 31, 2019. This loan was included in the sale of the Company's eight student properties that closed

on November 3, 2020.

(10) On December 10, 2020, we received approximately $15.4 million in full satisfaction of the principal, purchase option termination fee, and all interest due on the loan.

(11) On February 3, 2020, we received approximately $15.7 million in full satisfaction of the principal and all interest due on the loan.

 

We hold options or rights of first offer, but not obligations, to purchase some of the properties which are partially financed by our real estate loan investments. Certain option purchase prices may be negotiated at the time of the loan closing and are to be calculated based upon market cap rates at the time of exercise of the purchase option, with discounts up to 15 basis points (if any), depending on the loan. As of December 31, 2020, potential property acquisitions and units from projects in our real estate loan investment portfolio consisted of:




Total units

upon


Purchase option window


Project/Property

Location


completion (1)


Begin


End











Multifamily communities:









V & Three

Charlotte, NC


338



S + 90 days (2)


S + 150 days (2)


The Anson

Nashville, TN


301



S + 90 days (2)


S + 150 days (2)


Southpoint

Fredericksburg, VA


240



S + 90 days (2)


S + 150 days (2)


Vintage Destin

Destin, FL


282



(3)


(3)


Hidden River II

Tampa, FL


204



S + 90 days (2)


S + 150 days (2)


Kennesaw Crossing

Atlanta, GA


250



(4)


(4)


Vintage Horizon West

Orlando, FL


340



(3)


(3)


Solis Chestnut Farm

Charlotte, NC


256



(4)


(4)


Vintage Jones Franklin

Raleigh, NC


277



(3)


(3)


Solis Cumming Town Center

Atlanta, GA


320



(4)


(4)











Office property:









8West

Atlanta, GA


(5)



(5)


(5)














2,808

















(1) We evaluate each project individually and we make no assurance that we will acquire any of the underlying properties from our real estate loan investment portfolio.


(2) The option period window begins and ends at the number of days indicated beyond the achievement of a 93% physical occupancy rate by the underlying property.


(3) The option period window begins on the later of one year following receipt of final certificate of occupancy or 90 days  beyond the achievement of a 93% physical
occupancy rate by the underlying property and ends 60 days beyond the option period beginning date.


(4) We hold a right of first offer on the property.


(5) The project plans are for the construction of a class A office building consisting of approximately 195,000 rentable square feet; our purchase option window opens 90 days
following the achievement of 90% lease commencement and ends on November 30, 2024 (subject to adjustment). Our purchase option is at the to-be-agreed-upon market value.
In the event the property is sold to a third party, we would be due a fee based on a minimum multiple of 1.15 times the total commitment amount of the real estate loan investment,
less the amounts actually paid by the borrower, up to and including payment of accrued interest and repayment of principal at the time of the sale.


 


Mortgage Indebtedness

The following table presents certain details regarding our mortgage notes payable:





Principal balance as of










Acquisition/
refinancing
date


December 31,
2020


December 31,
2019


Maturity
date


Interest

rate


Basis point
spread over 1
Month
LIBOR


Interest only
through date
(1
)















Multifamily communities:



(in thousands)









Summit Crossing

10/31/2017


$

36,929



$

37,651



11/1/2024


3.99

%


Fixed rate


N/A

Summit Crossing II

6/30/2020


20,700



13,221



7/1/2030


2.93

%


278


7/31/2022

Vineyards

9/26/2014


32,703



33,382



10/1/2021


3.68

%


Fixed rate


N/A

Avenues at Cypress

6/30/2020


28,366



20,704



7/1/2027


2.96

%


Fixed rate


7/31/2022

Avenues at Northpointe

6/29/2020


33,546



26,313



7/1/2027


2.79

%


Fixed rate


7/31/2022

Venue at Lakewood Ranch

6/30/2020


36,555



28,076



7/1/2030


2.99

%


Fixed rate


7/31/2022

Aster at Lely Resort

6/29/2020


50,400



31,094



7/1/2030


2.95

%


Fixed rate


7/31/2022

CityPark View

6/25/2020


29,000



20,089



7/1/2030


2.75

%


Fixed rate


7/31/2023

Avenues at Creekside

7/31/2015




38,871



N/A


N/A


N/A


N/A

Citi Lakes

7/29/2019


40,324



41,079



8/1/2029


3.66

%


Fixed rate


N/A

Stone Creek

6/22/2017


19,451



19,800



7/1/2052


3.22

%


Fixed rate


N/A

Lenox Village Town Center

2/28/2019


38,169



38,813



3/1/2029


4.34

%


Fixed rate


N/A

Retreat at Lenox

12/21/2015


16,751



17,114



1/1/2023


4.04

%


Fixed rate


N/A

Overton Rise

2/1/2016


37,607



38,428



8/1/2026


3.98

%


Fixed rate


N/A

Village at Baldwin Park

7/31/2020


69,608



70,607



1/1/2054


3.59

%


Fixed rate


N/A

Crosstown Walk

6/30/2020


46,500



30,246



7/1/2027


2.92

%


Fixed rate


7/31/2022

525 Avalon Park

6/15/2017


63,256



64,519



7/1/2024


3.98

%


Fixed rate


N/A

City Vista

7/1/2016


32,938



33,674



7/1/2026


3.68

%


Fixed rate


N/A

Sorrel

8/24/2016


30,740



31,449



9/1/2023


3.44

%


Fixed rate


N/A

Citrus Village

7/10/2020


40,900



28,796



8/1/2027


2.95

%


Fixed rate


8/31/2022

Retreat at Greystone

11/21/2017


33,439



34,053



12/1/2024


4.31

%


Fixed rate


N/A

Founders Village

3/31/2017


29,635



30,202



4/1/2027


4.31

%


Fixed rate


N/A

Claiborne Crossing

4/26/2017


25,503



25,948



6/1/2054


2.89

%


Fixed rate


N/A

Luxe at Lakewood Ranch

7/26/2017


36,922



37,662



8/1/2027


3.93

%


Fixed rate


N/A

Adara at Overland Park

9/27/2017


30,024



30,624



4/1/2028


3.90

%


Fixed rate


N/A

Aldridge at Town Village

10/31/2017


35,892



36,569



11/1/2024


4.19

%


Fixed rate


N/A

Reserve at Summit Crossing

9/29/2017


18,893



19,276



10/1/2024


3.87

%


Fixed rate


N/A

Overlook at Crosstown Walk

11/21/2017


21,038



21,450



12/1/2024


3.95

%


Fixed rate


N/A

Colony at Centerpointe

12/20/2017


31,445



32,120



10/1/2026


3.68

%


Fixed rate


N/A

Lux at Sorrel

1/9/2018


29,868



30,474



2/1/2030


3.91

%


Fixed rate


N/A

Green Park

2/28/2018


37,785



38,525



3/10/2028


4.09

%


Fixed rate


N/A

The Lodge at Hidden River

9/27/2018


40,204



40,903



10/1/2028


4.32

%


Fixed rate


N/A

Vestavia Reserve

11/9/2018


36,511



37,130



12/1/2030


4.40

%


Fixed rate


N/A

CityPark View South

11/15/2018


23,379



23,767



6/1/2029


4.51

%


Fixed rate


N/A

Artisan at Viera

8/8/2019


39,104



39,824



9/1/2029


3.93

%


Fixed rate


N/A

Five Oaks at Westchase

10/17/2019


30,818



31,448



11/1/2031


3.27

%


Fixed rate


N/A

Horizon at Wiregrass Ranch

4/23/2020


51,360





5/1/2030


2.90

%


Fixed rate


N/A

Parkside at the Beach

4/30/2020


45,037





5/1/2030


2.95

%


Fixed rate


N/A

The Blake

11/2/2020


44,435





5/1/2030


2.82

%


Fixed rate


12/31/2025

The Menlo

12/15/2020


47,000





1/1/2031


2.68

%


Fixed rate


1/31/2024















Total multifamily communities



1,392,735



1,173,901
























Grocery-anchored shopping centers:

Spring Hill Plaza

9/17/2019


7,962



8,167



10/1/2031


3.72

%


Fixed rate


N/A

Parkway Town Centre

9/17/2019


7,866



8,067



10/1/2031


3.72

%


Fixed rate


N/A

Woodstock Crossing

8/8/2014


2,818



2,877



9/1/2021


4.71

%


Fixed rate


N/A

Deltona Landings

8/16/2019


6,141



6,289



9/1/2029


4.18

%


Fixed rate


N/A

Powder Springs

8/13/2019


7,749



7,951



9/1/2029


3.65

%


Fixed rate


(2)

Barclay Crossing

8/16/2019


6,086



6,233



9/1/2029


4.18

%


Fixed rate


N/A

Parkway Centre

8/16/2019


4,423



4,530



9/1/2029


4.18

%


Fixed rate


N/A

The Market at Salem Cove

10/6/2014


8,889



9,075



11/1/2024


4.21

%


Fixed rate


N/A

Independence Square

8/27/2015


11,184



11,455



9/1/2022


3.93

%


Fixed rate


N/A

Royal Lakes Marketplace

4/12/2019


9,345



9,572



5/1/2029


4.29

%


Fixed rate


N/A

The Overlook at Hamilton Place

12/22/2015


19,088



19,509



1/1/2026


4.19

%


Fixed rate


N/A

Summit Point

10/30/2015


11,118



11,494



11/1/2022


3.57

%


Fixed rate


N/A

East Gate Shopping Center

4/29/2016


5,118



5,277



5/1/2026


3.97

%


Fixed rate


N/A

Fury's Ferry

4/29/2016


5,912



6,096



5/1/2026


3.97

%


Fixed rate


N/A

Rosewood Shopping Center

4/29/2016


3,971



4,095



5/1/2026


3.97

%


Fixed rate


N/A

Southgate Village

4/29/2016


7,059



7,279



5/1/2026


3.97

%


Fixed rate


N/A

The Market at Victory Village

5/16/2016


8,751



8,911



9/11/2024


4.40

%


Fixed rate


N/A

Wade Green Village

4/7/2016


7,488



7,655



5/1/2026


4.00

%


Fixed rate


N/A

Lakeland Plaza

7/15/2016


26,632



27,459



8/1/2026


3.85

%


Fixed rate


N/A

University Palms

8/8/2016


12,030



12,421



9/1/2026


3.45

%


Fixed rate


N/A

Cherokee Plaza

4/12/2019


24,277



24,867



5/1/2027


4.28

%


Fixed rate


N/A

Sandy Plains Exchange

8/8/2016


8,404



8,676



9/1/2026


3.45

%


Fixed rate


N/A

Thompson Bridge Commons

8/8/2016


11,234



11,599



9/1/2026


3.45

%


Fixed rate


N/A

Heritage Station

8/8/2016


8,315



8,585



9/1/2026


3.45

%


Fixed rate


N/A

Oak Park Village

8/8/2016


8,580



8,859



9/1/2026


3.45

%


Fixed rate


N/A

Shoppes of Parkland

8/8/2016


15,414



15,702



9/1/2023


4.67

%


Fixed rate


N/A

Champions Village

10/18/2016


27,400



27,400



11/1/2021


3.25

%


300

(3)

11/1/2021

Castleberry-Southard

4/21/2017


10,734



10,959



5/1/2027


3.99

%


Fixed rate


N/A

Rockbridge Village

6/6/2017


13,310



13,597



7/5/2027


3.73

%


Fixed rate


N/A

Irmo Station

7/26/2017


9,758



10,038



8/1/2030


3.94

%


Fixed rate


N/A

Maynard Crossing

8/25/2017


16,953



17,449



9/1/2032


3.74

%


Fixed rate


N/A

Woodmont Village

9/8/2017


8,096



8,320



10/1/2027


4.13

%


Fixed rate


N/A

West Town Market

9/22/2017


8,260



8,503



10/1/2025


3.65

%


Fixed rate


N/A

Crossroads Market

12/5/2017


17,622



18,112



1/1/2030


3.95

%


Fixed rate


N/A

Anderson Central

3/16/2018


11,246



11,539



4/1/2028


4.32

%


Fixed rate


N/A

Greensboro Village

5/22/2018


8,040



8,250



6/1/2028


4.20

%


Fixed rate


N/A

Governors Towne Square

5/22/2018


10,696



10,976



6/1/2028


4.20

%


Fixed rate


N/A

Conway Plaza

6/29/2018


9,375



9,549



7/5/2028


4.29

%


Fixed rate


N/A

Brawley Commons

7/6/2018


17,519



17,963



8/1/2028


4.36

%


Fixed rate


N/A

Hollymead Town Center

12/21/2018


26,139



26,758



1/1/2029


4.64

%


Fixed rate


N/A

Gayton Crossing

1/17/2019


17,276



17,679



2/1/2029


4.71

%


Fixed rate


N/A

Free State Shopping Center

5/28/2019


45,549



46,391



6/1/2029


3.99

%


Fixed rate


N/A

Polo Grounds Mall

6/12/2019


12,986



13,227



7/1/2034


3.93

%


Fixed rate


N/A

Disston Plaza

6/12/2019


17,578



17,905



7/1/2034


3.93

%


Fixed rate


N/A

Fairfield Shopping Center

8/16/2019


19,750



19,750



8/16/2026


2.21

%


205


8/16/2022

Berry Town Center

11/14/2019


11,794



12,025



12/1/2034


3.49

%


Fixed rate


N/A

Hanover Shopping Center

12/19/2019


31,217



32,000



12/19/2026


3.62

%


Fixed rate


N/A

Wakefield Crossing

1/29/2020


7,728





2/1/2032


3.66

%


Fixed rate


N/A















Total grocery-anchored shopping centers (4)


614,880



621,090
























Student housing properties:














North by Northwest

6/1/2016




31,209



N/A


N/A


N/A


N/A

SoL

10/31/2018




35,656



N/A


N/A


N/A


N/A

Stadium Village

10/27/2017




45,228



N/A


N/A


N/A


N/A

Ursa

12/18/2017




31,400



N/A


N/A


N/A


N/A

The Tradition

5/10/2018




30,000



N/A


N/A


N/A


N/A

Knightshade

5/31/2018




47,125



N/A


N/A


N/A


N/A

The Bloc

6/27/2018




28,966



N/A


N/A


N/A


N/A















Total student housing properties





249,584
























Office buildings:

Brookwood Center

8/29/2016


29,925



30,716



9/10/2031


3.52

%


Fixed rate


N/A

Galleria 75

11/4/2016


5,131



5,340



7/1/2022


4.25

%


Fixed rate


N/A

Three Ravinia

12/30/2016


115,500



115,500



1/1/2042


4.46

%


Fixed rate


1/31/2022

Westridge at La Cantera

11/13/2017


50,449



51,834



12/10/2028


4.10

%


Fixed rate


N/A

Armour Yards

1/29/2018


39,425



40,000



2/1/2028


4.10

%


Fixed rate


N/A

150 Fayetteville

7/31/2018


113,768



114,400



8/10/2028


4.27

%


Fixed rate


N/A

Capitol Towers

12/20/2018


122,720



124,814



1/10/2037


4.60

%


Fixed rate


N/A

CAPTRUST Tower

7/25/2019


82,650



82,650



8/1/2029


3.61

%


Fixed rate


7/31/2029

Morrocroft Centre

3/19/2020


70,000





4/10/2033


3.40

%


Fixed rate


4/10/2025

251 Armour Yards (5)

1/22/2020


3,522





1/22/2025


4.50

%


Fixed rate


1/21/2023















Total office buildings



633,090



565,254










Grand total



2,640,705



2,609,829










Less: deferred loan costs



(42,233)



(38,185)










Less: below market debt adjustment



(4,008)



(4,622)










Mortgage notes, net



$

2,594,464



$

2,567,022










 

Footnotes to Mortgage Notes Table




(1) Following the indicated interest only period (where applicable), monthly payments of accrued interest and principal are based on a 25 to 35-year amortization period through the maturity date.


(2) The mortgage has interest-only payment terms for the periods of June 1, 2023 through May 1, 2024 and from June 1, 2028 through May 1, 2029.


(3) The interest rate has a floor of 3.25%.


(4) Excludes mortgage debt on the Neapolitan Way grocery-anchored shopping center, which is held in an unconsolidated joint venture.


(5) A construction loan financing redevelopment of the property.


 

Multifamily Communities

As of December 31, 2020, our multifamily community portfolio consisted of the following properties:











Three months ended
December 31, 2020

Property


Location


Number of
units


Average unit

size (sq. ft.)


Average
physical
occupancy


Average rent
per unit












Same-Store Communities:











Aldridge at Town Village


Atlanta, GA


300



969



97.6

%


$

1,419


Green Park


Atlanta, GA


310



985



97.2

%


$

1,489


Overton Rise


Atlanta, GA


294



1,018



96.4

%


$

1,595


Summit Crossing I


Atlanta, GA


345



1,034



98.4

%


$

1,253


Summit Crossing II


Atlanta, GA


140



1,100



96.2

%


$

1,366


The Reserve at Summit Crossing


Atlanta, GA


172



1,002



96.1

%


$

1,344


Avenues at Cypress


Houston, TX


240



1,170



95.6

%


$

1,455


Avenues at Northpointe


Houston, TX


280



1,167



96.8

%


$

1,395


Vineyards


Houston, TX


369



1,122



96.2

%


$

1,202


Aster at Lely Resort


Naples, FL


308



1,071



95.3

%


$

1,439


Sorrel


Jacksonville, FL


290



1,048



95.1

%


$

1,342


Lux at Sorrel


Jacksonville, FL


265



1,025



95.1

%


$

1,383


525 Avalon Park


Orlando, FL


487



1,394



94.7

%


$

1,512


Citi Lakes


Orlando, FL


346



984



92.9

%


$

1,468


Luxe at Lakewood Ranch


Sarasota, FL


280



1,105



94.9

%


$

1,490


Venue at Lakewood Ranch


Sarasota, FL


237



1,001



91.6

%


$

1,515


Crosstown Walk


Tampa, FL


342



1,070



96.3

%


$

1,341


Overlook at Crosstown Walk


Tampa, FL


180



986



95.6

%


$

1,413


Citrus Village


Tampa, FL


296



980



95.5

%


$

1,353


Lenox Village


Nashville, TN


273



906



95.4

%


$

1,309


Regent at Lenox


Nashville, TN


18



1,072



90.7

%


$

1,399


Retreat at Lenox


Nashville, TN


183



773



94.5

%


$

1,254


CityPark View


Charlotte, NC


284



948



95.4

%


$

1,166


CityPark View South


Charlotte, NC


200



1,005



96.8

%


$

1,274


Colony at Centerpointe


Richmond, VA


255



1,149



95.9

%


$

1,397


Founders Village


Williamsburg, VA


247



1,070



95.8

%


$

1,399


Retreat at Greystone


Birmingham, AL


312



1,100



95.4

%


$

1,376


Vestavia Reserve


Birmingham, AL


272



1,113



97.8

%


$

1,554


Adara Overland Park


Kansas City, KS


260



1,116



95.1

%


$

1,374


Claiborne Crossing


Louisville, KY


242



1,204



96.8

%


$

1,345


City Vista


Pittsburgh, PA


272



1,023



93.5

%


$

1,457













Total/Average Same-Store Communities




8,299





95.6

%














Stabilized Communities:











Stone Creek


Houston, TX


246



852



96.2

%


$

1,201


Artisan at Viera


Melbourne, FL


259



1,070



92.7

%


$

1,682


The Menlo


Jacksonville, FL


332



966






Village at Baldwin Park


Orlando, FL


528



1,069



95.6

%


$

1,661


The Blake


Orlando, FL


281



908






Parkside at the Beach


Panama City Beach, FL


288



1,041



95.1

%


$

1,390


Lodge at Hidden River


Tampa, FL


300



980



96.6

%


$

1,397