Bluerock Residential Growth REIT (BRG) Tops Q2 EPS by $1.18, Revenues Miss

Bluerock Residential Growth REIT (NYSE: BRG) reported Q2 EPS of $0.61, $1.18 better than the analyst estimate of ($0.57). Revenue for the quarter came in at $53 million versus the consensus estimate of $55.41 million.

Second Quarter Highlights

• Total revenues grew 1.1% to $53.0 million for the quarter from $52.4 million in the prior year period.
• Net income attributable to common stockholders for the second quarter of 2020 was $0.61 per share, as compared to net loss attributable to common stockholders of ($0.50) per share in the prior year period.
• Property Net Operating Income ("NOI") grew 5.5% to $29.1 million, from $27.6 million in the prior year period.
• Same store occupancy increased 90 basis points and same store average rent increased 1.6%.
• Improved operating margins by 170 basis points year over year to 61.1%.
• Same store revenue and NOI decreased 0.4% and 1.1% respectively, as compared to the prior year period.
• Portfolio occupancy was 95.3% at June 30, 2020, up 130 basis points from the prior year.
• Collected 97% of rents, including payment plans of 1%, for the three months ended June 30, 2020, including the properties underlying its preferred and mezzanine loan investments.
• Core funds from operations attributable to common shares and units ("CFFO") was $5.1 million, compared to $6.7 million in the prior year period. CFFO per share was $0.15 for the second quarter as compared to $0.22 in the prior year period. CFFO was impacted by the company's strategic decision to reduce its investment pace in the near term and to increase its cash position.
• Consolidated real estate investments, at cost, were approximately $2.1 billion.
• Completed preferred equity and mezzanine loan investments totaling $16 million, including in one multifamily community totaling 328 units in Jacksonville, Florida, additional funding for six multifamily developments and the buyout of the noncontrolling interest in one asset for $3.5 million.
• In April 2020, closed on sales of three properties for $160 million which contracts were entered into pre-COVID-19.
• Completed 39 value-add unit upgrades during the quarter achieving an average 23.3% ROI.
• Paid quarterly dividend of $0.1625 in cash per share of common stock.
• Raised $42.8 million through its continuous registered Series T Preferred Stock offering in the quarter.
• As of June 30, 2020, the Company had $236.2 million of unrestricted cash and availability under its revolving credit facilities.
• Expanded stock repurchase program to include repurchases of traded preferred stock.

"We are encouraged by increases in same store occupancy and average rent, along with an improvement in operating margins over the prior year period given the challenges of COVID-19. We appreciate the efforts of our dedicated team that strives to ensure that our properties maintain their high standard of service in spite of COVID-19," said Ramin Kamfar, Company Chairman and CEO. "Our rental collections continue to 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, as we acknowledge there could be some challenges in the future due to the further impact of COVID-19. The proceeds from the property sales and Series T Preferred Stock raises, and our deliberate slowdown in investment activity, increased our cash position so that we can effectively navigate the current environment and be positioned for growth opportunities."

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

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