Bluerock Residential Growth REIT (BRG) Misses Q4 EPS by 4c, Revenues Miss

Bluerock Residential Growth REIT (NYSE: BRG) reported Q4 EPS of ($0.62), $0.04 worse than the analyst estimate of ($0.58). Revenue for the quarter came in at $52.5 million versus the consensus estimate of $54.58 million.

Fourth Quarter Highlights

• Total revenues grew 5.0% to $52.5 million for the quarter from $50.0 million in the prior year period.
• Net loss attributable to common stockholders for the fourth quarter of 2019 was ($0.62) per diluted share, as compared to net loss attributable to common stockholders of ($0.55) per diluted share in the prior year period.
• Property Net Operating Income ("NOI") grew 5.2% to $28.2 million from $26.8 million in the prior year period.
• Same store revenue increased 2.4% and same store NOI decreased 0.2%, as compared to the prior year period due to one-time events detailed below. Full year same store revenue and NOI increased 4.8% and 5.8%, respectively.
• Completed 211 value-add unit upgrades during the quarter producing a 19.3% ROI through increased monthly rental rates.
• Improved operating margin by 110 basis points year over year to 61.6%.
• Core funds from operations attributable to common stockholders and unit holders ("CFFO") was $6.7 million, compared to $6.3 million in the prior year period. CFFO per diluted share was $0.21 for the quarter as compared to $0.20 in fourth quarter 2018.
• Invested in three multifamily communities totaling 866 units for a total purchase price of $222 million.
• Invested $48 million in debt and preferred equity investments, including three multifamily communities totaling 481 units in Atlanta and Smyrna, Georgia and additional fundings of seven development projects.
• Paid quarterly common stock dividend of $0.1625, a 77% payout on a CFFO basis.
• Terminated the Series B Preferred Stock offering, and initiated sales of Series T preferred stock in December 2019.
• Consolidated real estate investments, at cost, increased approximately $286 million to $2.1 billion, from December 31, 2018.

"The fourth quarter topped a productive year for BRG, as we delivered same-store NOI growth of 5.8% for the year, and completed over $629 million of investments to fuel our ongoing growth. This included an active fourth quarter where we acquired three operating assets and invested in three preferred equity investments," said Ramin Kamfar, Chairman and CEO. "We continued to target growth markets and expanded our geographic footprint in the West with acquisitions in Arizona and Washington. We are excited about the growth we anticipate as 2020 progresses and we realize the benefits of our recent acquisitions and proven value-add upgrade program."

2020 Guidance

Based on the Company's current outlook and market conditions, the Company anticipates 2020 CFFO in the range of $0.83 to $0.86 per share. The Company anticipates that earnings growth will be more heavily weighted towards the second half of 2020 as it realizes the upside opportunity from implementation of institutional property management, lease-ups, and value-add renovations at its recent acquisitions.

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

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