Bluerock Residential Growth REIT (BRG) Misses Q4 EPS by 58c, Revenues Beat

February 11, 2021 8:35 AM EST

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Bluerock Residential Growth REIT (NYSE: BRG) reported Q4 EPS of ($1.13), $0.58 worse than the analyst estimate of ($0.55). Revenue for the quarter came in at $56 million versus the consensus estimate of $54.86 million.

Fourth Quarter Highlights

  • Total revenues grew 6.6% to $56.0 million for the quarter from $52.5 million in the prior year period.
  • Net loss attributable to common stockholders for the fourth quarter of 2020 was ($1.13) per diluted share, as compared to net loss attributable to common stockholders of ($0.62) per diluted share in the prior year period.
  • Property Net Operating Income ("NOI") grew 9.7% to $30.9 million from $28.2 million in the prior year period.
  • Portfolio occupancy was 95.4% at December 31, 2020, up 140 basis points from the prior year.
  • Same store average occupancy increased 140 basis points and same store average rent increased 0.2%, as compared to the prior year period.
  • Same store revenue increased 0.6% and same store NOI increased 0.2%, as compared to the prior year period.
  • Improved operating margins by 50 basis points year over year to 62.1%.
  • Blended lease rate growth of 1.0%, up 60 basis points on a sequential quarter-over-quarter basis. January 2021 average lease growth accelerated to 1.4%, led by renewals at 4.4% and new leases at negative 1%.
  • Collected 97% of rents from its multifamily properties for the three months ended December 31, 2020.
  • Core funds from operations attributable to common shares and units ("CFFO") was $6.1 million, compared to $6.7 million in the prior year period. CFFO per diluted share was $0.18 for the fourth quarter as compared to $0.21 in the prior year period.
  • Consolidated real estate investments, at cost, were approximately $2.3 billion.
  • Acquired three multifamily communities totaling 968 units for a total purchase price of $166 million.
  • Made two additional Strategic Portfolio preferred equity investments in stabilized properties totaling $5 million and committed to another preferred equity investment in a development project for $10 million.
  • Completed additional funding for eleven preferred equity, mezzanine loan, and ground lease investments totaling $20 million.
  • Sold one operating asset for a sale price of $38 million and net proceeds of $10 million. The asset was sold at an in-place cap rate of 3.3% adjusting for the buyer's year one taxes and $300 per unit replacement reserves.
  • Sold three development investments for gross sales pricing of $218 million netting the Company proceeds of $70 million – two mezzanine loan repayments yielded $55 million and one preferred equity investment returned $15 million in net proceeds to the Company.
  • Completed 65 value-add unit upgrades during the quarter achieving an average 23.9% ROI.
  • Paid quarterly dividend of $0.1625 in cash per share of common stock.
  • Raised $76.2 million through its continuous registered Series T Preferred Stock offering in the quarter.
  • Completed partial redemptions of its 8.25% Series A Cumulative Redeemable Preferred Stock totaling $85 million, including accrued and unpaid dividends. Subsequent to quarter end, the Company announced it will redeem the remaining $55 million outstanding on February 26th.
  • Repurchased 2,851,975 shares of Class A common stock during the quarter at an average price of $9.81 per share.
  • As of December 31, 2020, had $208.3 million of unrestricted cash and availability under its revolving credit facilities.

"We continue to drive solid same store occupancy, average rent, and operating margins performance in our investments in highly amenitized, live/work/play apartment communities, even with the challenges of COVID-19," said Ramin Kamfar, Company Chairman and CEO. "Our increased occupancy, sequential quarterly rent growth improvement, and consistent elevated rental collections throughout the pandemic reflect a resilient Class A affordable suburban based portfolio well positioned to outperform in the coming quarters. We will also continue to opportunistically allocate capital through dispositions and new investments, as well as opportunistic share repurchases and redemption of our preferred equity."

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

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