Preferred Apartment Communities, Inc. (NYSE:APTS) ("PAC" or the "Company") today announced that it intends to redeem 221,645 shares (the "Called Shares") of its 6.00% Series A Redeemable Preferred Stock (the "Series A Preferred Stock") on August 3, 2021 (the "Redemption Date"). The Called Shares represent 100% of the Series A Preferred Stock currently available to call at the Company's option and 13.5% of the current total outstanding shares.

"The announcements yesterday and today represent a continuation of the clearly stated real estate and capital rotation strategies we have articulated over the past 12 months. Since last November, we have redeemed over $550 million of our Series A Preferred Stock or approximately 28% of the amount in place as of September 30, 2020. This significant and material positive change in our capital structure furthers our goal of realigning the balance sheet and puts us in a position to build on all of our recent operational successes," stated Joel T. Murphy, Preferred Apartment Communities' Chairman and Chief Executive Officer.

Mr. Murphy continued, "The sale we just completed of the substantial majority of our office assets has allowed us to harvest capital to realign our balance sheet and to further simplify our investment focus. This significant redemption of our Series A Preferred Stock is consistent with these objectives. The remaining net proceeds from this office asset sale will be used for additional investments in our core Sunbelt multifamily business through acquisitions or real estate investment loans, or other corporate purposes."

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 $0.50 per share, for total proceeds of $1,000.50 per share (the "Redemption Price"). Payment of the Redemption Price will be made in cash. On August 20, 2020, the Company will pay the cash dividend on the Series A Preferred Stock of $5.00 for the period from July 1, 2020 to July 31, 2020 to each holder of record on July 30, 2020. 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

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.

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Preferred Apartment Communities, Inc. Announces Redemption of Approximately $221 Million of its 6.00% Series A Redeemable Preferred Stock