Preferred Apartment Communities, Inc. Announces Estimated Income Tax Treatment of 2011 Distributions

ATLANTA, Feb. 29, 2012 /PRNewswire/ -- Preferred Apartment Communities, Inc. (AMEX: APTS), announced today how it expects its 2011 distributions to be classified for federal income tax purposes.  Stockholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of these distributions. The estimated distribution classifications are shown on the chart below.  This release is based on the preliminary results of work on the Company's tax filings and is subject to correction or adjustment when the filings are completed.

The Company is releasing information at this time to aid those required to distribute Forms 1099 on the Company's distributions.  No material change in these classifications is expected.

Common Stock (CUSIP # 74039L103)

In accordance with IRS Code Section 6045B, the Company has posted on its website (www.pacapts.com) Form 8937, Report of Organizational Actions Affecting Basis of Securities, which may be found on our website under "Investors" and then click on the "Tax Information" link. This form provides detailed information on the nondividend portion of the common stock distributions.

About Preferred Apartment Communities, Inc.

Preferred Apartment Communities, Inc. is a Maryland corporation formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States.  As part of our property acquisition strategy, we may enter into forward purchase contracts or purchase options for to-be-built multifamily communities and we may make mezzanine loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the construction of these properties.  As a secondary strategy, we may acquire senior mortgage loans, subordinate loans or mezzanine debt secured by interests in multifamily properties, membership or partnership interests in multifamily properties and other multifamily related assets.  Preferred Apartment Communities intends to elect and qualify as a real estate investment trust for U.S. federal income tax purposes, commencing with our tax year ended December 31, 2011.

SOURCE Preferred Apartment Communities, Inc.