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.

The address for the Redemption Agent is as follows:

Computershare Trust Company, N.A.

150 Royall Street

Canton, MA 02021

Attn: Corporate Actions

Telephone: (800) 546-5141

In connection with the transaction, JLL acted as real estate advisor and King & Spalding LLP acted as legal advisor to PAC.

About Preferred Apartment Communities, Inc.

Preferred Apartment Communities, Inc. (NYSE: APTS) is a real estate investment trust engaged primarily in the ownership and operation of Class A multifamily properties, with select investments in grocery anchored shopping centers. Preferred Apartment Communities’ investment objective is to generate attractive, stable returns for stockholders by investing in income-producing properties and acquiring or originating multifamily real estate loans. As of June 30, 2021, the Company owned or was invested in 117 properties in 13 states, predominantly in the Southeast region of the United States. Learn more at www.pacapts.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of forward-looking terminology such as "may", "trend", "will", "expects", "plans", "estimates", "anticipates", "projects", "intends", "believes", "goals", "objectives", "outlook" and similar expressions. These forward-looking statements include, but are not limited to, statements regarding expected use of proceeds. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements, including risks related to the closing of the transaction and timing thereof. 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 Securities and Exchange Commission. PAC undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

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

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