Bluerock Residential Growth REIT (BRG) Misses Q2 EPS by 6c, Revenues Beat; Boosts FY18 AFFO Guidance

Bluerock Residential Growth REIT (NYSE: BRG) reported Q2 EPS of ($0.44), $0.06 worse than the analyst estimate of ($0.38). Revenue for the quarter came in at $45 million versus the consensus estimate of $41.73 million.

• Total revenues grew 57% to $45.0 million for the quarter from $28.7 million in the prior year period.
• Net loss attributable to common stockholders for the second quarter of 2018 was ($0.44) per share, as compared to net income attributable to common stockholders of $0.67 per share in the prior year period. The prior year period included $1.26 per share of gains on the sale of real estate investments and joint venture interests.
• Property Net Operating Income (\"NOI\") grew 49% to $22.5 million, from $15.0 million in the prior year period.
• Same store Revenue and NOI increased 3.6% and 3.9% respectively, as compared to the prior year period.
• Adjusted funds from operations attributable to common shares and units (\"AFFO\") grew 56% to $5.3 million, from $3.4 million in the prior year period. AFFO per share is $0.17 for the quarter as compared to $0.13 in second quarter 2017.
• Consolidated real estate investments, at cost, increased approximately $151.5 million to $1.6 billion, from year end.
• The Company invested approximately $82 million in two multifamily communities totaling 502 units and $9 million to buy out minority ownership interests in two assets.
• The Company completed 292 value-add unit upgrades at an average cost of $4,708 per unit, and leased 269 of them during the second quarter. Year-to-date, the Company has completed 462 upgrades at an average cost of $4,373 per unit. The Company expects to complete between 900 and 1,200 unit renovations in 2018.
• Since inception, the Company has completed 942 value-add unit upgrades and achieved a $107 average monthly rental increase per unit, equating to a 27.4% ROI on all unit upgrades leased as of June 30, 2018.
• Repurchased 107,040 shares of stock during the second quarter at an average price of $8.96 per share, for a total cost of approximately $1.0 million.
  

"We continued to produce strong operating results in the second quarter with property NOI up 49%, same store NOI that increased 3.9% and AFFO which again for the second quarter in a row exceeded our dividend payment," said Ramin Kamfar, Company Chairman and CEO. "The robust first half performance has allowed us to increase the bottom end of our 2018 AFFO guidance range. We remain focused on ongoing operational improvements and creating value through our value-add unit upgrade programs. Furthermore, with access to attractive capital with our Series B redeemable preferred stock issuance, we will selectively pursue opportunities to accretively grow our portfolio of highly amenitized communities in targeted growth markets."

GUIDANCE:

BRG increased the low end of its full year 2018 AFFO guidance from $0.65 to $0.66 per share and is affirming the top end of the range at $0.70 per share.

For earnings history and earnings-related data on Bluerock Residential Growth REIT (BRG) click here.

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