Bluerock Residential Growth REIT Announces Share Repurchase Plan
December 28, 2018 | James Sprow | Blue Vault
Bluerock Residential Growth REIT, Inc. (NYSE American: BRG) on December 26 announced that its Board of Directors has authorized a new plan for the repurchase of up to $5.0 million of its outstanding shares of Class A common stock in accordance with the guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Act”), as part of the Company’s previously announced $25 million share repurchase program.
A repurchase plan under Rule 10b5-1 allows companies to repurchase shares at times when it might otherwise be prevented from doing so by securities laws or because of self-imposed trading blackout periods. Purchases pursuant to the repurchase plan will be made in accordance with Rules 10b5-1 and 10b-18 of the Act, and may be made in either the open market, including through block purchases, or in privately negotiated transactions from time to time, subject to certain price limitations and other conditions established under the plan. The shares that may be purchased under the 10b5-1 plan will be applied against the $25 million share repurchase program previously announced by the Company on February 13, 2018. The repurchase plan does not obligate the Company to acquire any particular amount of Class A common stock and will be subject to federal securities laws and other legal requirements. All open market repurchases will be made in accordance with Rule 10b-18 under the Act, which sets certain restrictions on the method, timing, price and volume of open market repurchases. The plan will terminate upon the earliest to occur of certain specified events as set forth therein.
As of September 30, 2018, the Company had 23,672,080 Class A common shares outstanding, as well as four classes of Preferred Stock outstanding. On November 16, 2018, the Company filed for a follow-on offering of a maximum of 500,000 shares of Series B Redeemable Preferred Stock and warrants to purchase a maximum of 10,000,000 shares of its Class A common stock. The Company does not intend to apply for a listing of the Series B Redeemable Preferred Stock or the warrants on any national securities exchange. Each share of Series B Redeemable Preferred Stock will have an initial “Stated Value” of $1,000, subject to appropriate adjustments, and will be entitled to receive cumulative cash dividends at an annual stated rate of 6% of the Stated Value. Bluerock Residential Growth REIT’s common stock (“BRG”) closed at a price of $8.86 per share on December 27, 2018, and had a forward dividend yield of 6.65%.
About Bluerock Residential Growth REIT, Inc.
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 to 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.
As of September 30, 2018, the Company owned interests in forty-three real estate properties, thirty-two consolidated operating properties and eleven through preferred equity and mezzanine loan investments. The forty-three properties contain an aggregate of 13,574 units, comprised of 10,774 consolidated operating units and 2,800 units through preferred equity and mezzanine loan investments. As of September 30, 2018, the Company’s consolidated operating properties were approximately 95% occupied.
Sources: Bluerock, SEC, Yahoo! Finance
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