Bluerock Residential Growth REIT (BRG) Misses Q3 EPS by 7c, Revenues Beat

Bluerock Residential Growth REIT (NYSE: BRG) reported Q3 EPS of ($0.71), $0.07 worse than the analyst estimate of ($0.64). Revenue for the quarter came in at $54.6 million versus the consensus estimate of $52.59 million.

Third Quarter Highlights

• Total revenues grew 1.9% to $54.6 million for the quarter from $53.5 million in the prior year period.
• Net loss attributable to common stockholders for the third quarter of 2020 was ($0.71) per diluted share, as compared to net income attributable to common stockholders of $0.75 per diluted share in the prior year period.
• Property Net Operating Income ("NOI") grew 3.7% to $29.1 million, from $28.0 million in the prior year period.
• Improved operating margins by 70 basis points year over year to 59.8%.
• Portfolio occupancy was 95.1% at September 30, 2020, up 130 basis points from the prior year.
• Same store occupancy increased 110 basis points and same store average rent increased 0.4%, as compared to the prior year period.
• Same store revenue increased 0.6% and same store NOI decreased 1.3%, as compared to the prior year period.
• Collected 97% of rents, including payment plans of 1%, from its multifamily properties for the three months ended September 30, 2020.
• Core funds from operations attributable to common shares and units ("CFFO") was $5.4 million, compared to $5.8 million in the prior year period. CFFO per share was $0.16 for the third quarter as compared to $0.19 in the prior year period. CFFO per share was impacted by $0.03 as a result of the Company's strategic decision to reduce its investment pace and hold excess liquidity during the quarter. With its strong pipeline, the Company expects to invest available capital on a go forward basis.
• Consolidated real estate investments, at cost, were approximately $2.2 billion.
• Acquired a 92% interest in a multifamily community of 320-units for a total purchase price of $34.5 million.
• Invested in two new development mezzanine loans with a total commitment of $21.7 million, of which $1.9 million was funded.
• Completed additional funding for ten preferred equity, mezzanine loan, and ground lease investments totaling $27.1 million.
• In October 2020, sold one operating asset, Cade Boca Raton, for a gross sales price of $37.8 million and net proceeds to the Company of $10.2 million. The asset was sold at an in-place cap rate of 3.3% adjusting for the buyer's year one taxes and $250 per unit replacement reserves.
• Completed 86 value-add unit upgrades during the quarter achieving an average 25.5% ROI.
• Paid quarterly dividend of $0.1625 in cash per share of common stock.
• Raised $66.2 million through its continuous registered Series T Preferred Stock offering in the quarter.
• Announced a partial redemption of its 8.25% Series A Cumulative Redeemable Preferred Stock.
• As of September 30, 2020, had $245.4 million of unrestricted cash and availability under its revolving credit facilities.

"Our solid same store occupancy, average rent, and operating margins performance continue to validate our market, asset and operating strategy even with the challenges of COVID-19," said Ramin Kamfar, Company Chairman and CEO. "Our rental collections reflect favorably on our investments in highly amenitized, live/work/play apartment communities in knowledge-based economies such as health care, technology, education, sciences and finance sectors. We are making accretive capital allocation decisions, and while, we acknowledge the potential for future challenges due to the pandemic, we have a robust pipeline of growth opportunities."

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

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