Bluerock Residential Growth REIT (BRG) 8 Aug 212021 Q2 Earnings call transcript

Good morning ladies and gentlemen. And welcome to the Bluerock Residential Growth REIT’s Second Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to introduce your host for today's call, Christopher Vohs, Chief Financial Officer of Bluerock Residential. sir. you to Over

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

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

Following you may our remarks, have. we'll be pleased to answer any questions

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

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

Thank you, Chris. And good morning everyone.

Head our Operating Mike and of In Managing me Siptrott, DiFranco, Chief are MacDonald, team, Ryan of executive our of Operations members Chief Jordan Transactions. Chief addition Strategy including Babb, with and our Investment key our our Officer; Chris, and Officer; to several Officer; Director our Ruddy, President today Steven EVP Jim

of We're plus strategic growth renovation sequential XX% reflect finished owning program the period in our rent us communities amenitized encouraged the strong our Our at second very investment markets. by increasing in to XX%. as the top with the re-acceleration highly quarter we growth, positioning main accretive is activity. rent knowledge, headline results of throughout and our live/work/play this benefits quarter our ongoing economy build quartile The very for June growth quarter

On pre-COVID platform, increase out additional early levels to continuing positive is the new technology being stages impact NOI home in value-add run a rate back have to cadence of upside the and should capital allocation interior through smart front, which renovation throughout XXXX. our we're and our deliver to rolled

base markets during to front, On into preferred execute of quarter, strategy stock our of capital continue common stated our the equity on we through the expanding our our redemptions common equity.

and our stock continuous quarterly was Our capital highest preferred with raise the robust also since trend of non throughout offering very traded quarter. inception an accelerating

partners turn call our sheet XXXX for Ryan. resulting operational in And that, and throughout like look economy, us trends As beyond. shareholder balance shareholders footprints Ryan, on substantial our through continuing on to hard as and confident, over thank well our to of positive year equity. we deliver going I'm to and their over of progress and the cycle to I focusing again significantly want which that management top-line will to we expect capitalize is position, remainder year knowledge environment. to strategy to suburban we With call value allow its a peer-leading the finally, of in deliver ownership to growth the BRGs I'd continue position all will before ahead, us work note full the employees the last aligned the throughout I with handing strong of we're over

these per share quarter. a up quarter. XX We core operating with efforts. couldn't $X.XX our XXXX, which year-over-year GAAP comments. per net in during of to your prior echo your me of top hard results X% $.XX income second Starting of have months. quarter certainly over compared $X.XX results let loss team year quartile work thank FFO, our their $X.XX share last Ramin, from year delivered prior you stockholders the I to property was staff achieved Thank last our the and BRG want for the net was We without common the to in

growth We expect through contributions Operationally capital for from continue year-over-year as our store growth large throughout in NOI same-store provide but we that the house. guidance. which numbers, against our of half it's trade to Mike note our the increased the annual was of X% have this first will X%, our significant XXXX in quarter, offset number get X%. the of and to strong by lease and of expense positive to positioned year benefit us year progress important the detail revenue earnings expand revenue opportunities store pipeline substantial outs from including same additional same rental increases on beginning investment well

revenue in the mentioned we quarter, As year. throughout build to last expect we same-store

million per As we turn stock we total during This in was quarter, access during of equity the our equity million, by activity, our quarter, float highest buybacks our preferred common totaling which at our of ever common the of X.X redemptions provides with see T strong since and continued million Series in raised redeemed which Shifting we $XXX of X% into markets quarter. unique increase XX% our attractive cost redeemable Series expanded common we XX share our Also, rate In capital. which B beginning of preferred price B of of quarter rental represents growth. our a equity. for million the common offset quarterly to shares, preferred to is the capital XX a equity Series $X.XX.

during transactions. three funded in preferred million totaling three and And million equity subsequent mezzanine into into four quarter investments quarter, XX in loans. new balance equity we end, equity we Turning XX invested into XX to operating to existing and and made additional An quarter BRG million equity investments assets, during X the operating preferred the the million respectively. sheet, was

with quarter end assets post two million. and front, XXX disposition XXX sold for we gross quarter million the prices On another during totaling the four sales

sales dispositions an six lower needing debt economic XX if were quarter following BRG X.X% sales million in of assumed. and at place in place the second equity our netted what for not been The million. cap in market and be to above XX have sold end, The proceeds netted quarter rate BRG average

As committed balance end with in Mike. a reduce that, the over we of the to a approximately investments, of investment of and call our pipeline north Mike? totalling availability and through had turn equity. combination me million of capital to on And as BRG facilities the July, we of $XXX available invest into million expect let for this BRG cash revolving credit XXX

good and continue portfolio progressed significant We strength that of build XX.X% maintained strength growth. as of And lease Ryan. rate morning, everyone. the led throughout sequentially while building strong with occupancy, you, and renewals rates occupancy base throughout momentum quarter the operating The quarter. came continued into new in acceleration Thank the a by to months the quarter

During the outperformance quarter rate accelerated a improve for grew the sequential points sequential XX.X% almost aggressive on throughout a lease we quarter-over-quarter throughout Renewals the basis the consolidated XX% quarter, XXX month throughout and continued consistently at on July, average by were basis a it by basis. at finishing second new June portfolio, to strong was Average positive but XX.X%. quarter, month-over-month MSAs at finishing rates all really above continuing for market XX.X%. average. at was quarter. rate perspective, XX posting or With on And at XX X% XX% the with growth of broad-based, of exceeding MSAs the average nine our growth into XX.X% May X.X%, rate expansion a and acceleration and From and that lease XX.X% significant average at July the drove June rate April growth.

and XX% the Additionally, north with X% are remainder and we positioned availability summer strong to occupancy of well the the leasing below season. end respectively, of quarter for

increase our to and revenue point driven XX a increase in on basis improvement rental our in was rates. an basis X.X% by Moving quarterly XXX point same-store results, in year-over-year occupancy

our For and focused XX the exceeding as same-store hosted migration Collectively, of MSAs market coastal benefit to knowledge growth and continues Sunbelt trends, revenue levels of outside outperform suburban we economy from rent our and urban X%. same-store growth. peers employment our positive communities XX quarter affordable XX footprint XX

increase. expenses same increase and for together projects maintenance due turn last that from discretionary from increased delayed prior pandemic. the were front, the with year-over-year the that X% year, expense quarter for coming most expenses up year, the accounting On of and of Controllable with X.X% insurance approximately of XX% to store onset taxes were the

increase increase experienced fee an rollout over and to project corresponding we marketing income We expenses, next we months, a the lease rollover. corresponding smart additional administrative as the addition, and package. with capture along XX revenue with associated in our home technology In expect each with digital adoption the increase of

see is of the and a to in quarters, we've drive both our focus. top we expect benefit And in to expense prior As that line controllable of technology area results. strategic savings investment communicated continuing revenue growth utilizing

quarter quarter-over-quarter pre-COVID the on on ROI that, accelerated Finally, basis, during the XXX of hand an at levels, Siptrott. completing we it now average units I our front, over with cadence XX%. tracking And Steven to will Steven? to value-add back a

Thank you, Mike.

basis. with investments upside stabilized multifamily cases, All to operational markets quarter, a total been project. assets our reinvestment at yield on additional and XX and growth one opportunities. with Also and equity commitments. to guidance investments equity one capital for the the investments recycle capital subsequent preferred active activity representing go-forward full-year In of closed development multi-family equity attachment we built-for-rent to allocation, all three commitments. than of respective as development multi-family on began disposition investments, assets our value and we've Consistent In strategically two in terms include million characteristics, lower deal second front higher seek profile we in family sponsors. properties adjusted acquisition new with into significant The operating consisted a investment leveraged stabilized six rent in expectations, risk provides double investment a stabilized each operating BRG digit equity three two growth second the million build-for-rent accelerate quarter, do investments portfolio, better points Raleigh, management one acquisitions have solid common The two projects, North market market XXX in BRG nine operating single add from on efficiencies, Carolina. closing totaling of strong the returns and creating five

to addition, the of expect back single family in close we In rental and that of both traditional diligence half we have BRG and and in the pipeline totaling year. accretive multifamily of robust equity fund million in due opportunities a XXX space, a the north

four dispositions, executed at the of unit rate replacement the first were buyer’s In real terms on year-one per $XXX of based dispositions estate cap X.X%, the economic allowed of quarter, complete, Florida. end value as Palmer since Ranch as our in an accretive add Sarasota, dispositions Lake business for recent such in Jackson, the non-core where was exit as assets Texas, well The of estimates. as markets, tax our such reserves plan

fully-marketed allocation preferred pause are both more a upside for of the new with offer in portfolio expect the execution we pipeline, investment attractive continue that than the at opportunities we adjusted dispositions potential will that of two investments to Following invest respect the deals. returns. off-market we to generate standpoint, post-quarter to substantial a dispositions, continue attractive cap risk and year. With remainder and relationship and operating stable NOI From assets equity rates

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Operator?

closing like concludes question-and-answer This for session. Ramin Instructions] [Operator I the remarks. turn to you. Kamfar conference Thank any over would the to back

on Thank for you, We everyone to your you to us forward progress upcoming you in you our goodbye. time continuing today. operator. giving And thank Thank and to look quarters. report

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

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