Why Preferred Apartment Communities Stock Rallied 20% in Early Trading Today
Share of Preferred Apartment Communities (NYSE: APTS), a real estate investment trust (REIT) that owns multifamily properties and other assets, rose a quick 20% or so at the opening of trading Thursday. That gain was related to rumors surrounding the future of the company, which seems like it might soon conclude with it being acquired.
Preferred Apartment Communities at one point owned a diversified portfolio of retail, office, student housing, and apartment assets. It has been trimming down its holdings, though, so that its name better reflects what it actually owns. It now has a portfolio split between strip malls and multifamily housing. Both are actually pretty hot sectors in the REIT space today, but the portfolio overhaul is noteworthy in that it means the company has been making big-picture changes. Which is where Thursday's sizable price advance comes into play.
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Source Fool.com
