UPDATE: Compass Point Initiates Preferred Apartment Communities to at Buy on Attractive Risk/Reward

Compass Point initiated coverage on Preferred Apartment Communities

with a Buy rating and a $9.75 price target. Compass Point noted, "APTS is a $90 million market cap, externally managed apartment REIT with 6 multifamily assets and 6 strategic loan investments. The company went public in April 2011, and closed on a $40 million private placement in January 2013. We expect the company's multifamily portfolio to take advantage of a continued strong macro environment, and believe the four mezzanine loans can provide both outsized unlevered returns as well as future potential value creation from the purchase options. Our $9.75 price target represents 22% upside to the current stock price when combined with the well covered $0.58 annualized dividend." Preferred Apartment Communities closed at $8.42 on Monday.