Preferred Apartment Communities, Inc. Completes Disposition of Armour Yards Office Portfolio for Approximately $79.5 Million and Announces the Redemption of Approximately $36.9 Million of its 6.00% Series A Redeemable Preferred Stock

Preferred Apartment Communities, Inc. (NYSE: APTS) ("PAC" or the "Company") closed today on its previously announced disposition of two office properties, Armour Yards and 251 Armour Yards (the “Armour Yards Portfolio”), to Northwood Investors for an aggregate purchase price of $79.5 million, which will result in net proceeds at closing of approximately $31.1 million, after the satisfaction of approximately $48.4 million of property level debt and other closing adjustments and costs.

The Company will redeem 36,926 shares (the "Called Shares") of its 6.00% Series A Redeemable Preferred Stock (the "Series A Preferred Stock") on September 13, 2021 (the "Redemption Date"). The Called Shares represent 100% of the Series A Preferred Stock currently available to call at the Company’s option. The Company has redeemed approximately $580 million of the Series A Preferred Stock since September 30, 2020.

Joel Murphy, PAC’s Chairman and Chief Executive Officer, said: "By electing to remove the Armour Yards Portfolio from our transaction with Highwoods, we have further demonstrated our ability to maximize the value of our few remaining office assets. We will utilize the cash proceeds generated from this sale to continue to realign our balance sheet through this announced redemption of our Series A Preferred Stock."

The shares of Series A Preferred Stock will be redeemed at their initial stated value of $1,000 per share, plus accrued and unpaid dividends up to, and including, the Redemption Date in an amount equal to $2.17 per share, for total proceeds of $1,002.17 per share (the "Redemption Price"). Payment of the Redemption Price will be made in cash. On September 20, 2021, the Company will pay the cash dividend on the Series A Preferred Stock of $5.00 for the period from August 1, 2021 to August 31, 2021 to each holder of record on August 31, 2021. Such payment will be separate and distinct from the payment of the Redemption Price on the Redemption Date.

Dividends on the shares of Series A Preferred Stock that are to be redeemed will cease to accrue on the Redemption Date. Upon redemption, the redeemed shares of Series A Preferred Stock will no longer be outstanding, and all rights of the holders of such shares will terminate, except the right of the holders to receive the cash payable upon such redemption, without interest.

As specified in the notice of redemption, shares of Series A Preferred Stock held in book-entry form through the Depository Trust Company ("DTC") will be redeemed according to DTC’s procedures and shares of Series A Preferred Stock held through the records of Computershare Trust Company, N.A. (the "Redemption Agent") will be automatically redeemed by the Redemption Agent.