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It is recommended that you should always consider visiting a financial advisor for independent financial advice before making investment decisions.
I do not work in the financial industry, so just because I write about it, doesn’t mean you should own it. So, consult with a financial advisor and do your due diligence, RESEARCH!
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For this Tuesday’s “Investing in REITs”, I will be writing about Bluerock Residential Growth REIT (NYSE: BRGE).
For those who are not familiar with REITs, these are Real Estate Investing Trusts and a way for investors to own real estate but not having to invest a fortune, nor be responsible for managing the property as companies handle all that.
In fact, there are different types of REITs, from apartment complexes, commercial properties, warehouses, hospital, mortgage, etc.
But what makes REITs attractive to investors is that many offer dividends and dividends means passive income which can grow overtime, the more you invest.
Today, we take a look at Bluerock Residential Growth REIT who according to the company are:
A publicly listed real estate investment trust (REIT) that focuses on acquiring a diversified portfolio of Class A institutional-quality apartment properties in demographically attractive growth markets to appeal to the renter by choice. The Company’s objective is to generate value through off-market/relationship-based transactions and, at the asset level, through improvements to operations and properties. The Company generally invests with strategic regional partners, including some of the best-regarded, private owner-operators in the United States, making it possible to operate as a local sharpshooter in each of its markets while enhancing off-market sourcing capabilities.
Bluerock’s management team offers a competitive advantage in sourcing, evaluating, underwriting and managing attractive investment opportunities on behalf of our shareholders. In aggregate, the team has been engaged in the acquisition over 35 million square feet of real estate valued at approximately $10 billion. Our Manager has developed a disciplined investment approach that combines experience with a structure that emphasizes thorough market research, local market knowledge, underwriting discipline, and risk management in evaluating potential investments.
The properties of Bluerock Residential Growth REIT’s portfolios include the Alexan Citycentre in Houston, Texas; Arium Metrowest in Orlando, Florida; Arium Westside in Atlanta, Georgia; Ashford Belmar in Lakewood, Colorado; Avenue 25 in Phoenix, Arizona; Chattahoochee Ridge in Atlanta, Georgia, Element in Las Vegas, Nevada; Gulfshore Apartment Homes in Naples, Florida; Georgetown Crossing in Savannah, Georgia; Park & Kingston in Charlotte, North Carolina and more!
Personally for me, I figured it would be a good time for me to invest more in REITs in the South and Midwest and from the properties featured, it caught my attention. So, let’s take a look at the REIT.
The stock is currently at $10.10 and the 52 week range was $6.71 lows and $12.83 highs.
The market cap is $285.7 million, an enterprise value of 2.5 billion, with a total of 28.29 million shares outstanding.
Schwab has given the REIT a rating of C. And the primary holders of BRG are Alliancebernstein L.P. with 1.9 million, BlackRock Inc. with 1.8 million and Vanguard Group Inc at 1.2 million shares.
According to Insider-Monitor, there has been active buy and sell of BRG shares from the CFO, the CIO and the Chairman and CEO. For 2021, as of right now, a total of 9,949 shares were bought and 79,814 shares were sold.
With the dips of the real estate market, there has been consistent ups and downs with the Bluerock Residential Growth REIT but the pandemic in 2020 brought the stock to its lowest point, which would have been a great time to take advantage of the dip. But right now, it’s at an OK price. That $9-$10 is a good time to jump in, granted, anything under $9, was getting BRG at a discount. The price of $3.79 per share during the beginning of the pandemic and still earning a .65 per share dividend income would have been fantastic and you would have seen growth as well.
But nevertheless, the .65 annual dividend is very good for its $10 or under price.
Currently, the quarterly dividend is $0.16 ($0.65 annually) and high annual dividend yield of 6.44% which is very good and one of the reasons why investors have jumped on this stock as a cheaper dividend producing REIT.
The dividend payments were rather interesting because 2015-2017 were great at$.09 every month ($1.16 annually) but in 2018, the REIT went from monthly to quarterly.
But let’s assume the price is $10 even per share at $.65 annually. If I bought 10 shares, that is $6.50 in annual dividend income. If I bought 100 shares, that would be $65.00 annually in dividend income. If you own 1000 shares, that’s $650.00 annually on dividends income.
If anything, Bluerock Residential Growth REIT (NYSE American: BRGE) is no doubt a REIT to look at because of its price and its dividend payout.
In the first quarter of 2021, Bluerock Residential, collected 97% of rents from multifamily properties for the three months ended March 31, 2021. Total rental and other property revenues grew 1.4% to $51.1 million for the quarter from $50.4 million in the prior year period. Blended lease rate growth of 3.5%, up 300 basis points on a sequential quarter-over-quarter basis.
For the first quarter of 2021, property revenues increased by 1.4% compared to the same prior year period. Total portfolio NOI was $31.1 million, an increase of $0.1 million, or 0.3%, compared to the same period in the prior year. Property NOI margins were 61.0% of revenue for the quarter, compared to 61.7% in the prior year quarter.
So far, as we get to some sort of normalcy after the Pandemic, I do like what I see with BRG’s activities and acquisitions, so I invested and it’s a long-term play for me.
As always, perform your due diligence and do a lot of research before investing. Talk to a financial advisor and find out if Bluerock Residential Growth REIT (NYSE American: BRGE). would be a perfect investment for you.
