AMEX:BRG

Stock Analysis Report

Bluerock Residential Growth REIT

Executive Summary

Bluerock Residential Growth REIT, Inc. (NYSE American: BRG) is a real estate investment trust that focuses on developing and acquiring a diversified portfolio of institutional-quality highly amenitized live/work/play apartment communities in demographically attractive knowledge economy growth markets to appeal to the renter by choice.

Rewards

Trading at 1.9% below its fair value

Revenue is forecast to grow 9.74% per year

Risk Analysis

Earnings are forecast to decline by an average of -50.7% per year for the next 3 years

Dividend of 5.44% is not well covered by earnings or forecast to be in the next 3 years

Currently unprofitable and not forecast to become profitable over the next 3 years



Snowflake Analysis

Unattractive dividend payer and overvalued.


Similar Companies

Share Price & News

How has Bluerock Residential Growth REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BRG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

BRG

0.9%

US REITs

0.6%

US Market


1 Year Return

13.7%

BRG

18.9%

US REITs

24.6%

US Market

Return vs Industry: BRG underperformed the US REITs industry which returned 18.4% over the past year.

Return vs Market: BRG underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

BRGIndustryMarket
7 Day-2.1%0.9%0.6%
30 Day1.1%3.9%3.0%
90 Day0.4%0.1%10.6%
1 Year20.4%13.7%23.8%18.9%27.3%24.6%
3 Year13.0%-9.1%35.5%18.4%50.5%40.8%
5 Year32.3%-12.0%46.8%16.5%78.9%59.1%

Price Volatility Vs. Market

How volatile is Bluerock Residential Growth REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bluerock Residential Growth REIT undervalued compared to its fair value and its price relative to the market?

1.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BRG ($11.93) is trading below our estimate of fair value ($12.16)

Significantly Below Fair Value: BRG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BRG is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: BRG is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BRG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BRG is overvalued based on its PB Ratio (4.2x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Bluerock Residential Growth REIT forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-50.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: BRG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: BRG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: BRG's revenue (9.7% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: BRG's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BRG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Bluerock Residential Growth REIT performed over the past 5 years?

-49.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRG is currently unprofitable.

Growing Profit Margin: BRG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BRG is unprofitable, and losses have increased over the past 5 years at a rate of -49.1% per year.

Accelerating Growth: Unable to compare BRG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BRG is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (8.1%).


Return on Equity

High ROE: BRG has a negative Return on Equity (3.32%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bluerock Residential Growth REIT's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BRG has a high level of physical assets or inventory.

Debt Coverage by Assets: BRG's debt is not covered by short term assets (assets are 0.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable BRG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BRG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 40.4% per year.


Financial Institutions Analysis

Asset Level: BRG's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BRG has a sufficient allowance for bad loans.

Low Risk Liabilities: BRG reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BRG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BRG has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BRG has an appropriate level of bad loans.


Next Steps

Dividend

What is Bluerock Residential Growth REIT's current dividend yield, its reliability and sustainability?

5.45%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years5.4%

Current dividend yield vs market & industry

Notable Dividend: BRG's dividend (5.44%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: BRG's dividend (5.44%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: BRG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BRG has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: BRG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: BRG is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.


Next Steps

Management

What is the CEO of Bluerock Residential Growth REIT's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

R. Kamfar (56yo)

11.4yrs

Tenure

US$4,754,112

Compensation

Mr. R. Ramin Kamfar serves as the Chief Executive Officer at Bluerock Enhanced Multifamily Advisor, LLC since October 31, 2013. Previously, Mr. Kamfar served as the Chief Executive Officer at Bluerock Enh ...


CEO Compensation Analysis

Compensation vs Market: R.'s total compensation ($USD4.75M) is above average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: R.'s compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.6yrs

Average Tenure

55yo

Average Age

Experienced Management: BRG's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

54yo

Average Age

Experienced Board: BRG's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$5,263,15508 May 19
Harbert Fund Advisors Inc.
EntityCompany
Shares457,276
Max PriceUS$11.51
SellUS$1,303,75718 Mar 19
Harbert Fund Advisors Inc.
EntityCompany
Shares120,743
Max PriceUS$10.86

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Brian Bailey (52yo)

    • Compensation: US$137.00k
  • R. Kamfar (56yo)

    Chairman & CEO

    • Tenure: 11.4yrs
    • Compensation: US$4.75m
  • Michael Konig (59yo)

    Chief Legal Officer & Secretary

    • Tenure: 15.1yrs
    • Compensation: US$2.32m
  • Gary Kachadurian (69yo)

    • Tenure: 1.5yrs
  • James Babb (54yo)

    Chief Investment Officer

    • Compensation: US$2.37m
  • Jordan Ruddy (56yo)

    President & COO

    • Tenure: 2.3yrs
    • Compensation: US$2.32m
  • Josh Hoffman

    Senior Vice President of Operations

    • Christopher Vohs (43yo)

      CFO & Treasurer

      • Tenure: 7yrs
      • Compensation: US$985.25k
    • Mike DiFranco (54yo)

      Executive Vice President of Operations

      • Tenure: 0.8yrs
      • Compensation: US$286.85k

    Board Members

    • R. Kamfar (56yo)

      Chairman & CEO

      • Tenure: 11.4yrs
      • Compensation: US$4.75m
    • Elizabeth Harrison (54yo)

      Independent Director

      • Tenure: 1.5yrs
      • Compensation: US$55.00k
    • I. Majumder (51yo)

      Lead Independent Director

      • Tenure: 2.7yrs
      • Compensation: US$152.00k
    • Romano Tio (59yo)

      Independent Director

      • Tenure: 11yrs
      • Compensation: US$134.00k
    • Kamal Jafarnia (52yo)

      Independent Director

      • Tenure: 0.6yrs

    Company Information

    Bluerock Residential Growth REIT, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Bluerock Residential Growth REIT, Inc.
    • Ticker: BRG
    • Exchange: AMEX
    • Founded:
    • Industry: Residential REITs
    • Sector: Real Estate
    • Implied Market Cap: US$351.562m
    • Market Cap: US$268.178m
    • Shares outstanding: 28.86m
    • Website: https://www.bluerockresidential.com

    Location

    • Bluerock Residential Growth REIT, Inc.
    • 1345 Avenue of the Americas
    • 32nd Floor
    • New York
    • New York
    • 10105
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    BRGAMEX (NYSE MKT LLC)YesClass A Common StockUSUSDMar 2014
    BKODB (Deutsche Boerse AG)YesClass A Common StockDEEURMar 2014
    BRG.PRAAMEX (NYSE MKT LLC)RED PFD SER AUSUSDOct 2015
    BRG.PRCAMEX (NYSE MKT LLC)PFD SER CUSUSDJul 2016
    BRG.PRDAMEX (NYSE MKT LLC)PFD SER DUSUSDOct 2016

    Biography

    Bluerock Residential Growth REIT, Inc. (NYSE American: BRG) is a real estate investment trust that focuses on developing and acquiring a diversified portfolio of institutional-quality highly amenitized live/work/play apartment communities in demographically attractive knowledge economy 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 value add improvements to properties and operations. The Company is included in the Russell 2000 and Russell 3000 Indexes. BRG has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 00:56
    End of Day Share Price2020/01/22 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.