Preferred Apartment Communities Inc. sold an aggregate of 108,948 units during the fourth quarter of 2017 from its offering of up to 1,500,000 units, for net proceeds of roughly $98.1 million after commissions and other fees.
Each unit consisted of one share of series A redeemable preferred stock and one warrant to purchase up to 20 shares of common stock.
The company also issued roughly 2.8 million shares of common stock during the quarter, resulting in aggregate gross proceeds of about $41.1 million.
Preferred Apartment Communities also issued and sold an aggregate of 2,879 shares of series M redeemable preferred stock during the fourth quarter of 2017, resulting in net proceeds of roughly $2.8 million.
The company noted that Hurricane Harvey caused property damage at its Stone Creek multifamily community in Port Arthur, Texas, requiring it to write off real estate assets with a net book value of roughly $6.9 million. The National Flood Insurance Program covers the property damage and lost rental income for the asset, resulting in the company recording an insurance receivable of the same amount and no loss being recorded.
Preferred Apartment Communities had received roughly $4.7 million of the insurance proceeds as at Dec. 31, 2017, and expects to receive the remainder during the first quarter.
Restoration and remediation work is underway at the property and is expected to be completed by May.