BRG - Earnings call transcript Q3 2021 | Bluerock Residential Growth REIT Inc

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and welcome to Bluerock Residential Growth REIT’s Third Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to introduce your host for today’s call, Mr. Officer Residential. Financial Chief Vohs, of Bluerock Christopher Mr. Vohs, ahead. please go

Christopher Vohs

we welcome Bluerock you, morning REIT’s found press on open, under can third at Investors Press Thank and prior our Growth supplement. release market our This quarter to be call. tab. Residential and release earnings conference XXXX to bluerockresidential.com, website issued the earnings

In addition, week. we anticipate next filing our XX-Q

you remarks, conclusion be pleased questions of any our we’ll may the Following answer have. to

as call Before XXXX. defined set they actual we those of forth from statements please associated contain begin, and Litigation There of forward-looking may uncertainties with variety are this the Act may in Securities that a Private risks such under and differ results statements, forward-looking note Reform are statements.

and statements to our refer the should measures release to risks uncertainties, we as earnings as press respect REIT. guidance. earnings earnings these Ramin and in used For you Bluerock disclosure our please issued the supplement to SEC over this for a a the I’ll forward-looking to with this morning our respect call Growth the CEO GAAP and non-GAAP use measures turn we well of Chairman and non-GAAP Residential to review reasons in With discussion filings. with assumptions that, these call, uses And Kamfar, management the of reconciliation

Ramin Kamfar

Thank you, Chris, morning, everyone. and good

Officer; and Babb, our Mike positioning key growth Operating and are Jim play our In President an Strategy live, of amenitized Officer; the Transactions. our Siptrott, and To of reflect owning markets. MacDonald, members Head Investment communities you strategic addition Chief Director, highly team, of EVP results today DiFranco, quarter executive Steven of Jordan to economy Operations; several with and Chief benefits our third knowledge Chris, including Ruddy, overview, our Managing our our work, me give our Officer; Ryan Chief

month-over-month continued growth rates strong record-setting acceleration, XX.X%. at the lease including New September

approximately back quarter, $XXX equity. in of terms million We’re half particularly deploying BRG active of investments, the the in in

look work continue ahead, of confident and like well again strategy to we’re is significantly environment. us before finally, With that, a I throughout the And to with the years want growth of our over cycle well BRG’s of through note two year of footprint a the deliver top our deliver will focusing Ryan. ownership last the allowed top handing the to progress Ryan, rent to which has we line I’d shareholder on throughout all economy shareholders full to value pandemic, of remainder positions we aligned equity. As growth hard peer-leading the that and into year positioned to its and suburban management us knowledge to call over through call deliver substantial as employees turn quartile for the us beyond. thank the their has end over I’ll heading

Ryan MacDonald

Thank results. you, Ramin. Starting with the

of earn-in investment balance through and get of back from FFO from large prior half we average our share $X.XX $X.XX During a closings net significantly achieved quarter, FFO per was a the quarter. year year dual the $X.XX quarter, versus as stockholders diluted expect a to income cash contributions expand the in per rent common fourth positive $X.XX the share the capital robust period. GAAP We do in core quarter. in our core by loss of compared the to prior FFO impacted quarter growth of the in benefit strong we our and to pipeline in large net was earnings diluted

Moving balance sheet. on to the

and million of we committed unconsolidated four investments During structure, preferred $XX $X into funded. of new in operating assets of capital operating million of million million properties, into development preferred properties which the across $XX quarter, equity invested tranches the multiple equity has $XX been

$X transactions. existing funded we’ve VRG mezzanine we preferred into invested quarter, million investments. equity five to-date, following seven of into loan equity quarter $XX Lastly, and during end, And million the

sold On $XXX Together, and sales we proceeds equity dispositions cap consolidated during one an the million of gross investment sales disposition totaling had BRG prices the were front, at assets preferred in netted the average with in-place two redeemed. the equity sold rate and $XXX three million, quarter, economic X%.

the Series raising offering, preferred million end of offering this we of common of million the Also its early the price repurchased On on quarter, $XX.XX. capital $XXX the quarter, during the we will of month. T reach front, raised which in during period $XX shares average part our

approximately the as end Following of had and available and credit cash markets availability investment on for a combination revolving BRG of million of October, capital $XXX facilities. our activities, our through investment

reduce significantly into that, as our call We through with year-end. committed to capital turn deploy Mike. pipeline balance this the to to expect like I’d we Mike? over And

Mike DiFranco

to Thank pleased that third I’m you, Ryan, and everyone. good quarter a report morning, we operationally. had strong

averaging each new while growth average XX.X%, rate Our and of occupancy strong quarter, the the month team accelerating lease delivered consistently quarter. throughout

quarter, third finished over with average way growth XX.X%. the new at the For XX.X%, lease at lease leading growth release

average built both believe XX.X%, and lease finishing basis sequentially quarter-over-quarter throughout As to outsized and opportunity points month-over-month quarters. months in and September at XX.X% the growth lease rate respectively. were Renewals new on month-over-month trade-outs at additional accelerated a converge mentioned, leases growth average at renewal September X%. coming is the And up to XXX We finish new there quarter, and our with like our with new basis X%.

X.X%. expense on our to quarter X.X% growth increases Moving results. was revenue a increased and basis community Same-store year-over-year of X.X% driven by the for NOI same on of with

was driven Our rental rates. X.X% occupancy in growth in improvement X.X% by and point increase a year-over-year basis a XX revenue

MSAs posted quarter, same-store of revenue XX our of growth X%. For and the XX exceeding XX communities XX same-store our

heading months around X%. We continue into positioned availability be to well sitting today at with shoulder the

marketing few technology Home months. the our up Smart and has the COVID-related the year rollout, front, or admin quarter insurance expenses onetime from a same-store over expense versus costs, prior will earn which that the revenue for On included Controllable increased a increase X.X% eviction next taxes maintenance X% year-over-year corresponding for and additional together $XXX,XXX expense increase. costs with the approximately expenses and accounting largest and XX were in

We growth normalize expect forward. controllable expense to level lower going rate at the a

assets, residents, COVID will for over team of Finally, period. basis value-add completing front, I entire time, quarter, now taking well our like thank above pre-COVID accelerated during done the I a on it our throughout job business care a to ROI with Siptrott. we the on in At units at And that, cadence impacted Steven? levels, XX%. this hand our quarter-over-quarter XXX the our average Steven of to and an would our

Steven Siptrott

Mike. you, Thank

markets capital full quarter with guidance, front into year on in active with the and strategically disposition and In allocation to growth we’re consistent assets the the heavily capital reinvestment on order terms recycle volume of during basis. back the profile a in of weighted The a of July, dispositions majority end occurred more our the beginning towards higher quarter. go-forward our acquisition with of and

with the During in operating quarter, we invested in allocated totaling the million million majority $XX equity. equity, $XXX properties BRG to

us equity was investments were made given into unconsolidated a profile. for risk-adjusted preferred the projects, new strong earnings of Additional both focus returns and which area and year operating strategic this properties development

heading preferred continue we investment the are of for equity operating of year into properties value-add with focus. will additional the majority and While pipeline consolidated investments, mezzanine end to a look our the

BRG of under amount opportunities investments additional continued to commitments, investment cadence expect diligence. totaling quarter has the in-house given in and closing including a through additional robust equity be end, the active equity pipeline million capital post invested of $XX Our we significant year-end of

at $XXX and us sold are three quarter, we reallocate deals. terms assets and estimates. dispositions new allowed opportunistic and rate of at capital unit The rates one per focus. to cap estate the exit economic pipeline, average assets year With based the more attractive on opportunities with during X% buyer’s a dispositions In fully to real a reserves continue investment weighted to replacement value-add to than cap at core tax off-market that generate respect pricing assets we marketed relationships attractive of

and tailwinds core with and rental And Atlanta growth rate for be as drive knowledge growth risk-adjusted open that focus up Austin it include rental few, of that will Phoenix, tremendous believe such name Asset will economy a which offer demand-side and continue markets opportunities displayed multi both single-family primarily solid our types in to returns, we Raleigh, outperformance. Operator? we relative that, Q&A. to will all our

Operator

Instructions] over remarks. this the [Operator question-and-answer that At it not have At session. Kamfar time, any the now this do call for we’ll I questions. like to would time, closing to Ramin we appears begin any turn back

Ramin Kamfar

giving and operator, to Take report everyone, forward coming quarters. thank today. the look in continued you We you, on for care us your our goodbye. progress to you, and to continuing Thank time

Operator

today’s presentation. now has conference Thank concluded. The for attending you

You may now disconnect.

Bluerock Residential Growth REIT (BRG) 4 Nov 212021 Q3 Earnings call transcript