Bluerock Residential Growth REIT (BRG) Misses Q1 EPS by 17c, Revenues Beat

Bluerock Residential Growth REIT (NYSE: BRG) reported Q1 EPS of ($0.70), $0.17 worse than the analyst estimate of ($0.53). Revenue for the quarter came in at $56.2 million versus the consensus estimate of $54.14 million.

First Quarter Highlights

• Total revenues grew 9% to $56.2 million for the quarter from $51.5 million in the prior year period.
• Net loss attributable to common stockholders for the first quarter of 2020 was ($0.70) per share, as compared to ($0.53) per share in the prior year period. Net loss attributable to common stockholders includes non-cash items, including depreciation and amortization expense, of $0.88 per share in the first quarter of 2020 compared to $0.74 per share for the prior year period.
• Property Net Operating Income ("NOI") grew 15% to $31.1 million, from $27.1 million in the prior year period.
• Same store revenue and NOI increased 3.1% and 2.6%respectively, as compared to the prior year period.
• Improved operating margins by 240 basis points year over year to 61.7%.
• Core funds from operations attributable to common shares and units ("CFFO") increased 13% to $7.1 million, from $6.3 million in the prior year period. CFFO per share was up 10% to $0.22 for the first quarter as compared to $0.20 in the prior year period.
• Consolidated real estate investments, at cost, were approximately $2.2 billion.
• Completed the following investments:
  • Two multifamily communities totaling 610 units for a total purchase price of $138 million.
  • Preferred equity and mezzanine loan investments totaling $14 million, including in two multifamily communities totaling 408 units in Savannah, Georgia and Pensacola, Florida, and additional fundings for seven multifamily developments.
  • Purchased land for a ground lease for $3 million and committed $20 million for the ground lease tenant's multifamily development.
• Completed the following dispositions:
  • Sold an asset underlying an unconsolidated joint venture and one operating property for an aggregate sales price of $112 million, for net proceeds of $42 million.
  • In April 2020, closed on sales of three properties for $160 million which were entered into pre-COVID-19.
• Completed 120 value-add unit upgrades during the quarter achieving an average 21.8% ROI.
• Paid quarterly dividend of $0.1625 in cash per share of common stock, a 74% payout ratio on a CFFO basis.
• Raised $57.4 million through its registered Series T Preferred Stock offering in the quarter.

"We are committed to the health, safety, and well-being of our employees, business partners, service providers and tenants. We thank our dedicated team that continues to ensure that our properties maintain their high standard of service in spite of the challenges from COVID-19," said Ramin Kamfar, Company Chairman and CEO. "We are pleased with the strong operating results in the first quarter. We are encouraged by the rental collections in April and May which reflect the quality and stability of our investments in highly amenitized, live/work/play apartment communities in knowledge-based job economies; such as health care, technology, education, sciences and finance sectors, but recognize that we may face some challenges in the future due to the impact of COVID-19. We have taken steps to bolster our cash position to effectively navigate the current crisis and to ensure that we have the capital to continue executing on our investment strategy."

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

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