NEW YORK, Nov. 5, 2018 /PRNewswire/ -- Bluerock
Residential Growth REIT, Inc. (NYSE American: BRG) ("the Company"),
an owner of highly amenitized multifamily apartment communities,
announced today its financial results for the quarter ended
September 30, 2018.
Third Quarter Highlights
- Total revenues grew 59% to $47.9
million for the quarter from $30.2
million in the prior year period.
- Net loss attributable to common stockholders for the third
quarter of 2018 was ($0.44) per
share, as compared to ($0.45) per
share in the prior year period.
- Property Net Operating Income ("NOI") grew 52% to $24.2 million, from $16.0
million in the prior year period.
- Same store revenue and NOI increased 4.8% and 4.0%
respectively, as compared to the prior year period.
- Core funds from operations attributable to common shares and
units ("CFFO") increased 67% to $6.4
million, from $3.8 million in
the prior year period. CFFO per share is $0.21 for the third quarter as compared to
$0.14 in the prior year period.
Dividend payout on a CFFO basis improved to 77% during the third
quarter.
- Adjusted funds from operations attributable to common shares
and units ("AFFO") grew 67% to $5.7
million, from $3.4 million in
the prior year period. AFFO per share is $0.18 for the quarter as compared to $0.13 in third quarter 2017.
- Consolidated real estate investments, at cost, increased
approximately $197.5 million to
$1.7 billion, from December 31, 2017.
- The Company invested approximately $16
million in a multifamily community totaling 400 units with a
total purchase price of $40.2 million
and $3 million to buy out a
noncontrolling interest in one asset.
- The Company completed 385 value-add unit upgrades for a
year-to-date total of 847 upgrades at an average cost of
$4,555 per unit. The Company expects
to complete between 900 and 1,200 unit renovations in 2018.
- Since inception within the existing portfolio, the Company has
completed 1,327 value-add unit upgrades and achieved a $107 average monthly rental increase per unit,
equating to a 26.7% ROI on all unit upgrades leased as of
September 30, 2018. The Company has
identified approximately 4,600 remaining units within the existing
portfolio for value-add upgrades with similar economics to the
completed renovations.
- The Company is increasing the low end of its full year 2018
AFFO guidance range from $0.66 to
$0.68 per share and is affirming the
top end of the range at $0.70 per
share. This represents the second consecutive quarter with a
guidance increase.
"Our third quarter results clearly demonstrate the successful
execution of our strategic initiatives, including value-add
investments and accretive approach to growing our portfolio," said
Ramin Kamfar, Company Chairman and
CEO. "We continued to perform well in the third quarter, with
property NOI up 52% and on a CFFO basis we improved our dividend
payout to 77% in the third quarter. Our same store operational
results are among the best in the multifamily industry, reflecting
the contribution from our unit upgrades and our focus on knowledge
economy growth markets. These strong results have allowed us to
again raise the lower end of our 2018 AFFO guidance range. We
believe we have ample runway to continue to create additional value
as we focus on accretive operational improvements and completing
our value-add unit upgrade programs."
Financial Results
Net loss attributable to common stockholders for the third
quarter of 2018 was $10.3 million,
compared to $12.0 million in the
prior year period. Net loss attributable to common
stockholders included non-cash expenses of $14.2 million or $0.46 per share in the third quarter of 2018
compared to $14.8 million or
$0.55 per share for the prior year
period.
AFFO for the third quarter of 2018 was $5.7 million, or $0.18 per diluted share, compared to $3.4 million, or $0.13 per diluted share in the prior year
period. AFFO was primarily driven by growth in property NOI
of $8.2 million and interest income
of $3.6 million arising from
significant investment activity. This was primarily offset by a
year-over-year increase in interest expense of $5.1 million, general and administrative expenses
of $2.1 million, and preferred stock
dividends of $2.1 million.
Core FFO for the third of 2018 was $6.4
million, or $0.21 per diluted
share, compared to $3.8 million, or
$0.14 per diluted share in the prior
year period. Core FFO adds back non-cash, non-operating
expenses such as accretion on the Company's Series B preferred
stock.
Total Portfolio Performance
$ In thousands,
except average rental
rates
|
3Q18
|
|
3Q17
|
|
Variance
|
|
YTD18
|
|
YTD17
|
|
Variance
|
|
Total Revenues
(1)
|
$ 47,877
|
|
$ 30,154
|
|
58.8%
|
|
$134,705
|
|
$ 87,004
|
|
54.8%
|
|
Property Operating
Expenses
|
$ 17,971
|
|
$ 12,060
|
|
49.0%
|
|
$ 50,504
|
|
$ 34,205
|
|
47.7%
|
|
NOI
|
$ 24,204
|
|
$ 15,974
|
|
51.5%
|
|
$ 67,669
|
|
$ 47,058
|
|
43.8%
|
|
Operating
Margin
|
57.4%
|
|
57.0%
|
|
40
|
bps
|
57.3%
|
|
57.9%
|
|
(60)
|
bps
|
Occupancy
Percentage
|
94.5%
|
|
94.2%
|
|
30
|
bps
|
94.0%
|
|
94.4%
|
|
(40)
|
bps
|
Average Rental
Rate
|
$
1,253
|
|
$
1,214
|
|
3.2%
|
|
$
1,239
|
|
$
1,240
|
|
-0.1%
|
|
|
|
|
|
|
|
|
|
|
(1)
Including interest income from related parties
|
|
|
|
|
|
|
|
|
For the third quarter of 2018, property revenues increased by
50.4% compared to the same prior year period primarily attributable
to the increased size of the portfolio. Total portfolio NOI
was $24.2 million, an increase of
$8.2 million, or 51.5%, compared to
the same period in the prior year. Property operating
expenses were up primarily due to the increased size of the
portfolio.
Property NOI margins were 57.4% of revenue for the quarter,
compared to 57.0% of revenue in the prior year quarter.
Same Store Portfolio Performance
$ In thousands,
except average rental
rates
|
3Q18
|
|
3Q17
|
|
Variance
|
|
YTD18
|
|
YTD17
|
|
Variance
|
|
Revenues
|
$
29,004
|
|
$
27,682
|
|
4.8%
|
|
$
63,075
|
|
$
60,210
|
|
4.8%
|
|
Property Operating
Expenses
|
$
12,553
|
|
$
11,864
|
|
5.8%
|
|
$
26,741
|
|
$
25,189
|
|
6.2%
|
|
NOI
|
$
16,451
|
|
$
15,818
|
|
4.0%
|
|
$
36,334
|
|
$
35,021
|
|
3.7%
|
|
Operating
Margin
|
56.7%
|
|
57.1%
|
|
(40)
|
bps
|
57.6%
|
|
58.2%
|
|
(60)
|
bps
|
Occupancy
Percentage
|
94.5%
|
|
94.4%
|
|
10
|
bps
|
94.1%
|
|
94.5%
|
|
(40)
|
bps
|
Average Rental
Rate
|
$
1,273
|
|
$
1,220
|
|
4.3%
|
|
$
1,292
|
|
$
1,234
|
|
4.7%
|
|
The Company's same store portfolio for the quarter ended
September 30, 2018 included 22
properties. For the third quarter of 2018, same store NOI was
$16.5 million, an increase of
$0.6 million, or 4.0%, compared to
the same period in the prior year. Same store property revenues
increased by 4.8% compared to the same prior year period, primarily
attributable to a 4.3% increase in average rental rates, as well as
average occupancy increasing 10 basis points to 94.5%. Same
store expenses increased $0.69
million, primarily due to $0.40
million of additional real estate taxes due to higher
valuations by municipalities, $0.17
million due to recurring annual maintenance incurred in the
current year on certain properties which was not required in the
prior year as the properties were undergoing renovations, and
$0.11 million related to payroll
increase.
Acquisition Activity
On July 26, 2018, the Company
acquired a 93% interest in a 400-unit apartment community located
in Houston, Texas, known as
Veranda at Centerfield. The total purchase price was
approximately $40.2 million, funded
in part by a $26.1 million mortgage
loan secured by the Veranda at Centerfield property.
On August 29, 2018, the Company
invested approximately $3 million to
increase our ownership stake to 100% in our ARIUM Palms
property.
Balance Sheet
During the third quarter, the Company raised gross proceeds of
approximately $29.8 million through
the issuance of 29,829 shares of Series B preferred stock with
associated warrants at $1,000 per
unit.
As of September 30, 2018, the
Company had $26.4 million of
unrestricted cash on its balance sheet, approximately $56.1 million available among its revolving
credit facilities, and $1.2 billion
of debt outstanding.
Dividend
The Board of Directors authorized, and the Company declared, a
quarterly dividend for the third quarter of 2018 equal to a
quarterly rate of $0.1625 per share
on its Class A common stock, payable to the stockholders of record
as of September 25, 2018, which was
paid in cash on October 5, 2018. A
portion of each dividend may constitute a return of capital for tax
purposes. There is no assurance that we will continue to declare
dividends or at this rate.
On July 10, 2018, the Board of
Directors authorized, and the Company declared, a monthly dividend
of $5.00 per share of Series B
preferred stock, payable to the stockholders of record as of
July 25, 2018, August 24, 2018, and September 25, 2018 which was paid in cash on
August 3, 2018, September 5, 2018, and October 5, 2018, respectively.
2018 Guidance
Based on the Company's current outlook and market conditions,
the Company is increasing the low end of the 2018 AFFO guidance
from $0.66 to $0.68 per share and is reaffirming the top end of
the range at $0.70 per share.
For additional guidance details, please see page 32 of Company's
Third Quarter 2018 Earnings Supplement available under Investor
Relations on the Company's website
(www.bluerockresidential.com). Subsequent to issuing 2018
guidance in February 2018, the
Company revised its presentation of AFFO attributable to common
stockholders to reflect AFFO attributable to common shares and
units. The estimated weighted average diluted shares and
units outstanding used to calculate AFFO per share now includes
noncontrolling interests – operating partnership units. As
the Company's presentation now also includes the impact of AFFO
attributable to operating partnership units, and as shares and
units are treated on a one-for-one basis, there is no change to
projected AFFO per share for purposes of 2018 AFFO guidance.
Conference Call
All interested parties can listen to the live conference call at
11:00 AM ET on Monday, November 5,
2018 by dialing +1 (866) 843-0890 within the U.S., or +1
(412) 317-6597, and requesting the "Bluerock Residential
Conference."
For those who are not available to listen to the live call, the
conference call will be available for replay on the Company's
website two hours after the call concludes, and will remain
available until December 6, 2018 at
http://services.choruscall.com/links/brg181106.html, as well as by
dialing +1 (877) 344-7529 in the U.S., or +1 (412) 317-0088
internationally, and requesting conference number 10125116.
The full text of this Earnings Release and additional
Supplemental Information is available in the Investor Relations
section on the Company's website at
http://www.bluerockresidential.com.
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 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.
For more information, please visit the Company's website at
www.bluerockresidential.com.
Forward Looking Statements
This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and other federal
securities laws. These forward-looking statements are based upon
the Company's present expectations, but these statements are not
guaranteed to occur. Furthermore, the Company disclaims any
obligation to publicly update or revise any forward-looking
statement to reflect changes in underlying assumptions or factors,
of new information, data or methods, future events or other
changes. Investors should not place undue reliance upon
forward-looking statements. For further discussion of the factors
that could affect outcomes, please refer to the risk factors set
forth in Item 1A of the Company's Annual Report on Form 10-K filed
by the Company with the U.S. Securities and Exchange Commission
("SEC") on March 13, 2018, and
subsequent filings by the Company with the SEC. We claim the safe
harbor protection for forward looking statements contained in the
Private Securities Litigation Reform Act of 1995.
Portfolio
Summary
|
|
The following is a
summary of our operating real estate and mezzanine/preferred
investments as of September 30, 2018:
|
|
Consolidated
Operating
Properties
|
|
Location
|
|
Number of
Units
|
|
Year Built/
Renovated (1)
|
|
Ownership
Interest
|
|
Average
Rent
(2)
|
|
%
Occupied (3)
|
ARIUM at Palmer
Ranch
|
|
Sarasota,
FL
|
|
320
|
|
2016
|
|
100%
|
|
$
1,283
|
|
94%
|
ARIUM
Glenridge
|
|
Atlanta,
GA
|
|
480
|
|
1990
|
|
90%
|
|
1,163
|
|
92%
|
ARIUM
Grandewood
|
|
Orlando,
FL
|
|
306
|
|
2005
|
|
100%
|
|
1,363
|
|
96%
|
ARIUM
Gulfshore
|
|
Naples, FL
|
|
368
|
|
2016
|
|
100%
|
|
1,249
|
|
93%
|
ARIUM Hunter's
Creek
|
|
Orlando,
FL
|
|
532
|
|
1999
|
|
100%
|
|
1,349
|
|
94%
|
ARIUM
Metrowest
|
|
Orlando,
FL
|
|
510
|
|
2001
|
|
100%
|
|
1,326
|
|
95%
|
ARIUM
Palms
|
|
Orlando,
FL
|
|
252
|
|
2008
|
|
100%
|
|
1,332
|
|
94%
|
ARIUM Pine
Lakes
|
|
Port St. Lucie,
FL
|
|
320
|
|
2003
|
|
85%
|
|
1,241
|
|
93%
|
ARIUM
Westside
|
|
Atlanta,
GA
|
|
336
|
|
2008
|
|
90%
|
|
1,532
|
|
98%
|
Ashton
Reserve
|
|
Charlotte,
NC
|
|
473
|
|
2015
|
|
100%
|
|
1,079
|
|
93%
|
Citrus
Tower
|
|
Orlando,
FL
|
|
336
|
|
2006
|
|
97%
|
|
1,273
|
|
94%
|
Enders Place at
Baldwin Park
|
|
Orlando,
FL
|
|
220
|
|
2003
|
|
92%
|
|
1,749
|
|
95%
|
James on South
First
|
|
Austin, TX
|
|
250
|
|
2016
|
|
90%
|
|
1,248
|
|
98%
|
Marquis at Crown
Ridge
|
|
San Antonio,
TX
|
|
352
|
|
2009
|
|
90%
|
|
971
|
|
93%
|
Marquis at Stone
Oak
|
|
San Antonio,
TX
|
|
335
|
|
2007
|
|
90%
|
|
1,410
|
|
95%
|
Marquis at The
Cascades
|
|
Tyler, TX
|
|
582
|
|
2009
|
|
90%
|
|
1,091
|
|
97%
|
Marquis at
TPC
|
|
San Antonio,
TX
|
|
139
|
|
2008
|
|
90%
|
|
1,468
|
|
96%
|
Outlook at
Greystone
|
|
Birmingham,
AL
|
|
300
|
|
2007
|
|
100%
|
|
917
|
|
96%
|
Park &
Kingston
|
|
Charlotte,
NC
|
|
168
|
|
2015
|
|
100%
|
|
1,244
|
|
98%
|
Plantation
Park
|
|
Lake Jackson,
TX
|
|
238
|
|
2016
|
|
80%
|
|
1,390
|
|
97%
|
Preston
View
|
|
Morrisville,
NC
|
|
382
|
|
2000
|
|
100%
|
|
1,074
|
|
96%
|
Roswell City
Walk
|
|
Roswell,
GA
|
|
320
|
|
2015
|
|
98%
|
|
1,528
|
|
94%
|
Sands Parc
|
|
Daytona Beach,
FL
|
|
264
|
|
2017
|
|
100%
|
|
1,306
|
|
96%
|
Sorrel
|
|
Frisco, TX
|
|
352
|
|
2015
|
|
95%
|
|
1,284
|
|
93%
|
Sovereign
|
|
Fort Worth,
TX
|
|
322
|
|
2015
|
|
95%
|
|
1,329
|
|
95%
|
The Brodie
|
|
Austin, TX
|
|
324
|
|
2001
|
|
93%
|
|
1,250
|
|
99%
|
The Links at Plum
Creek
|
|
Castle Rock,
CO
|
|
264
|
|
2000
|
|
88%
|
|
1,417
|
|
94%
|
The Mills
|
|
Greenville,
SC
|
|
304
|
|
2013
|
|
100%
|
|
1,027
|
|
93%
|
The Preserve at
Henderson Beach
|
|
Destin, FL
|
|
340
|
|
2009
|
|
100%
|
|
1,358
|
|
96%
|
Veranda at
Centerfield
|
|
Houston,
TX
|
|
400
|
|
1999
|
|
93%
|
|
916
|
|
94%
|
Villages of Cypress
Creek
|
|
Houston,
TX
|
|
384
|
|
2001
|
|
80%
|
|
1,090
|
|
96%
|
Wesley
Village
|
|
Charlotte,
NC
|
|
301
|
|
2010
|
|
100%
|
|
1,352
|
|
95%
|
Consolidated
Operating Properties Subtotal/Average
|
|
10,774
|
|
|
|
|
|
$
1,253
|
|
95%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mezzanine/Preferred
Investments
|
|
Location
|
|
Planned Number of
Units
|
|
|
|
|
|
Pro Forma Average
Rent (4)
|
|
|
|
Alexan
CityCentre
|
|
Houston,
TX
|
|
340
|
|
|
|
|
|
$
2,144
|
|
|
|
Alexan Southside
Place
|
|
Houston,
TX
|
|
270
|
|
|
|
|
|
2,012
|
|
|
|
Arlo, formerly West
Morehead
|
|
Charlotte,
NC
|
|
286
|
|
|
|
|
|
1,507
|
|
|
|
Cade Boca Raton,
formerly
APOK Townhomes
|
|
Boca Raton,
FL
|
|
90
|
|
|
|
|
|
2,549
|
|
|
|
Domain at The One
Forty,
formerly Domain
|
|
Garland,
TX
|
|
299
|
|
|
|
|
|
1,469
|
|
|
|
Flagler
Village
|
|
Fort Lauderdale,
FL
|
|
385
|
|
|
|
|
|
2,352
|
|
|
|
Helios
|
|
Atlanta,
GA
|
|
282
|
|
|
|
|
|
1,486
|
|
|
|
Leigh House, formerly
Lake
Boone Trail
|
|
Raleigh,
NC
|
|
245
|
|
|
|
|
|
1,271
|
|
|
|
Novel Perimeter,
formerly
Crescent Perimeter
|
|
Atlanta,
GA
|
|
320
|
|
|
|
|
|
1,749
|
|
|
|
Vickers Historic
Roswell,
formerly Vickers Village
|
|
Roswell,
GA
|
|
79
|
|
|
|
|
|
3,176
|
|
|
|
Whetstone
|
|
Durham, NC
|
|
204
|
|
|
|
|
|
1,311
|
(2)
|
|
|
Mezzanine and
Preferred Investments Subtotal/Average
|
|
2,800
|
|
|
|
|
|
$
1,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
Properties Total/Average
|
|
13,574
|
|
|
|
|
|
$
1,370
|
|
|
|
|
(1) Represents date of last
significant renovation or year built if there were no
renovations.
|
(2)
Represents the average effective monthly rent per occupied unit for
the three months ended September 30, 2018.
|
(3)
Percent occupied is calculated as (i) the number of units occupied
as of September 30, 2018, divided by (ii) total number of units,
expressed as a percentage.
|
(4) Alexan
CityCentre, Alexan Southside Place, Helios, Leigh House, and
Whetstone are preferred equity investments. The Alexan Southside
Place, Helios, and Leigh House investments have the option to
convert to indirect common interest in the property once the
property reaches 70% occupancy. Arlo, Cade Boca Raton, Domain
at The One Forty, Flagler Village, Novel Perimeter, and Vickers
Historic Roswell are mezzanine loan investments. Additionally,
Arlo, Cade Boca Raton, Domain at The One Forty, and Vickers
Historic Roswell have an option to purchase indirect property
interest upon maturity.
|
Consolidated
Statement of Operations For the Three and Nine Months
Ended September 30, 2018 and 2017 (Unaudited and dollars
in thousands except for share and per share data)
|
|
|
|
Three Months
Ended
September
30,
|
|
|
Nine Months
Ended
September
30,
|
|
|
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net rental
income
|
|
$
|
37,408
|
|
|
$
|
24,827
|
|
|
$
|
104,791
|
|
|
$
|
72,239
|
|
Other property
revenues
|
|
|
4,767
|
|
|
|
3,207
|
|
|
|
13,382
|
|
|
|
9,024
|
|
Interest income from
related parties
|
|
|
5,702
|
|
|
|
2,120
|
|
|
|
16,532
|
|
|
|
5,741
|
|
Total
revenues
|
|
|
47,877
|
|
|
|
30,154
|
|
|
|
134,705
|
|
|
|
87,004
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property
operating
|
|
|
17,971
|
|
|
|
12,060
|
|
|
|
50,504
|
|
|
|
34,205
|
|
Property management
fees
|
|
|
1,141
|
|
|
|
781
|
|
|
|
3,208
|
|
|
|
2,250
|
|
General and
administrative
|
|
|
4,732
|
|
|
|
1,103
|
|
|
|
13,929
|
|
|
|
4,249
|
|
Management fees to
related parties
|
|
|
—
|
|
|
|
2,802
|
|
|
|
—
|
|
|
|
11,733
|
|
Acquisition and
pursuit costs
|
|
|
7
|
|
|
|
15
|
|
|
|
78
|
|
|
|
3,215
|
|
Management
internalization
|
|
|
—
|
|
|
|
826
|
|
|
|
—
|
|
|
|
1,647
|
|
Weather-related
losses, net
|
|
|
13
|
|
|
|
678
|
|
|
|
181
|
|
|
|
678
|
|
Depreciation and
amortization
|
|
|
15,384
|
|
|
|
11,763
|
|
|
|
45,844
|
|
|
|
33,094
|
|
Total
expenses
|
|
|
39,248
|
|
|
|
30,028
|
|
|
|
113,744
|
|
|
|
91,071
|
|
Operating income
(loss)
|
|
|
8,629
|
|
|
|
126
|
|
|
|
20,961
|
|
|
|
(4,067)
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17
|
|
Preferred returns and
equity in income of unconsolidated real estate
joint ventures
|
|
|
2,789
|
|
|
|
2,688
|
|
|
|
7,877
|
|
|
|
7,865
|
|
Gain on sale of real
estate investments
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
50,040
|
|
Gain on sale of real
estate joint venture interest
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
10,238
|
|
Loss on
extinguishment of debt and modification costs
|
|
|
(1,624)
|
|
|
|
—
|
|
|
|
(2,277)
|
|
|
|
(1,639)
|
|
Interest expense,
net
|
|
|
(12,905)
|
|
|
|
(7,395)
|
|
|
|
(36,063)
|
|
|
|
(22,339)
|
|
Total other
(expense) income
|
|
|
(11,740)
|
|
|
|
(4,707)
|
|
|
|
(30,463)
|
|
|
|
44,182
|
|
Net (loss)
income
|
|
|
(3,111)
|
|
|
|
(4,581)
|
|
|
|
(9,502)
|
|
|
|
40,115
|
|
Preferred stock
dividends
|
|
|
(9,105)
|
|
|
|
(7,038)
|
|
|
|
(25,995)
|
|
|
|
(19,271)
|
|
Preferred stock
accretion
|
|
|
(1,631)
|
|
|
|
(905)
|
|
|
|
(4,141)
|
|
|
|
(1,889)
|
|
Net (loss) income
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating partnership
units
|
|
|
(3,157)
|
|
|
|
(125)
|
|
|
|
(8,841)
|
|
|
|
4
|
|
Partially owned
properties
|
|
|
(356)
|
|
|
|
(382)
|
|
|
|
(824)
|
|
|
|
18,388
|
|
Net (loss) income
attributable to noncontrolling interests
|
|
|
(3,513)
|
|
|
|
(507)
|
|
|
|
(9,665)
|
|
|
|
18,392
|
|
Net (loss) income
attributable to common stockholders
|
|
$
|
(10,334)
|
|
|
$
|
(12,017)
|
|
|
$
|
(29,973)
|
|
|
$
|
563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
per common share - Basic
|
|
$
|
(0.44)
|
|
|
$
|
(0.45)
|
|
|
$
|
(1.28)
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
per common share – Diluted
|
|
$
|
(0.44)
|
|
|
$
|
(0.45)
|
|
|
$
|
(1.28)
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic common shares outstanding
|
|
|
23,742,129
|
|
|
|
26,474,093
|
|
|
|
23,893,957
|
|
|
|
25,851,536
|
|
Weighted average
diluted common shares outstanding
|
|
|
23,742,129
|
|
|
|
26,474,093
|
|
|
|
23,893,957
|
|
|
|
25,852,059
|
|
Consolidated
Balance Sheets Third Quarter 2018 (Unaudited
and dollars in thousands except for share and per share
amounts)
|
|
|
|
September 30,
2018
|
|
|
December 31,
2017
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Net Real Estate
Investments
|
|
|
|
|
|
|
|
|
Land
|
|
$
|
181,985
|
|
|
$
|
169,135
|
|
Buildings and
improvements
|
|
|
1,419,423
|
|
|
|
1,244,193
|
|
Furniture, fixtures
and equipment
|
|
|
48,618
|
|
|
|
38,446
|
|
Construction in
progress
|
|
|
241
|
|
|
|
985
|
|
Total Gross Real Estate
Investments
|
|
|
1,650,267
|
|
|
|
1,452,759
|
|
Accumulated
depreciation
|
|
|
(93,751)
|
|
|
|
(55,177)
|
|
Total Net Real Estate
Investments
|
|
|
1,556,516
|
|
|
|
1,397,582
|
|
Cash and cash
equivalents
|
|
|
26,356
|
|
|
|
35,015
|
|
Restricted
cash
|
|
|
32,132
|
|
|
|
29,575
|
|
Notes and accrued
interest receivable from related parties
|
|
|
163,241
|
|
|
|
140,903
|
|
Due from
affiliates
|
|
|
2,782
|
|
|
|
2,003
|
|
Accounts receivable,
prepaid and other assets
|
|
|
19,883
|
|
|
|
9,689
|
|
Preferred equity
investments and investments in unconsolidated real estate joint
ventures
|
|
|
77,466
|
|
|
|
71,145
|
|
In-place lease
intangible assets, net
|
|
|
1,212
|
|
|
|
4,635
|
|
Total
Assets
|
|
$
|
1,879,588
|
|
|
$
|
1,690,547
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE PREFERRED STOCK AND EQUITY
|
|
|
|
|
|
|
|
|
Mortgages
payable
|
|
$
|
1,107,081
|
|
|
$
|
939,494
|
|
Revolving credit
facilities
|
|
|
62,959
|
|
|
|
67,670
|
|
Accounts
payable
|
|
|
1,505
|
|
|
|
1,652
|
|
Other accrued
liabilities
|
|
|
34,268
|
|
|
|
22,952
|
|
Due to
affiliates
|
|
|
537
|
|
|
|
1,575
|
|
Distributions
payable
|
|
|
11,848
|
|
|
|
14,287
|
|
Total
Liabilities
|
|
|
1,218,198
|
|
|
|
1,047,630
|
|
8.250% Series A
Cumulative Redeemable Preferred Stock, liquidation preference
$25.00 per share, 10,875,000
shares authorized; and 5,721,460 issued and outstanding as of
September 30, 2018 and December 31, 2017
|
|
|
139,355
|
|
|
|
138,801
|
|
|
6.000% Series B
Redeemable Preferred Stock, liquidation preference $1,000 per
share, 725,000 shares
authorized; 263,095 and 184,130 issued and outstanding as of
September 30, 2018 and December 31, 2017,
respectively
|
|
|
234,086
|
|
|
|
161,742
|
|
|
7.625% Series C
Cumulative Redeemable Preferred Stock, liquidation preference
$25.00 per share, 4,000,000
shares authorized; and 2,323,750 issued and outstanding as of
September 30, 2018 and December 31, 2017
|
|
|
56,408
|
|
|
|
56,196
|
|
Equity
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Preferred
stock, $0.01 par value, 230,400,000 shares authorized; none issued
and outstanding
|
|
|
—
|
|
|
|
—
|
|
7.125% Series D
Cumulative Preferred Stock, liquidation preference $25.00 per
share, 4,000,000 shares
authorized; 2,850,602 issued and outstanding as of September 30,
2018 and December 31, 2017
|
|
|
68,705
|
|
|
|
68,705
|
|
Common stock - Class
A, $0.01 par value, 747,509,582 shares authorized; 23,672,080 and
24,218,359 shares
issued and outstanding as of September 30, 2018 and December 31,
2017, respectively
|
|
|
237
|
|
|
|
242
|
|
Common stock - Class
C, $0.01 par value, 76,603 shares authorized; 76,603 shares issued
and outstanding as
of September 30, 2018 and December 31, 2017
|
|
|
1
|
|
|
|
1
|
|
Additional
paid-in-capital
|
|
|
309,883
|
|
|
|
318,170
|
|
Distributions in
excess of cumulative earnings
|
|
|
(201,914)
|
|
|
|
(164,286)
|
|
Total Stockholders'
Equity
|
|
|
176,912
|
|
|
|
222,832
|
|
Noncontrolling
Interests
|
|
|
|
|
|
|
|
|
Operating partnership
units
|
|
|
31,911
|
|
|
|
42,999
|
|
Partially owned properties
|
|
|
22,718
|
|
|
|
20,347
|
|
Total Noncontrolling
Interests
|
|
|
54,629
|
|
|
|
63,346
|
|
Total
Equity
|
|
|
231,541
|
|
|
|
286,178
|
|
TOTAL LIABILITIES,
REDEEMABLE PREFERRED STOCK AND EQUITY
|
|
$
|
1,879,588
|
|
|
$
|
1,690,547
|
|
Non-GAAP Financial Measures
The foregoing supplemental
financial data includes certain non-GAAP financial measures that we
believe are helpful in understanding our business and performance,
as further described below. Our definition and calculation of these
non-GAAP financial measures may differ from those of other REITs,
and may, therefore, not be comparable.
Funds from Operations, Core Funds from Operations, and
Adjusted Funds from Operations
We believe that funds from operations ("FFO"), as defined by the
National Association of Real Estate Investment Trusts ("NAREIT"),
core funds from operations ("Core FFO"), and adjusted funds from
operations ("AFFO") are important non-GAAP supplemental measures of
operating performance for a REIT.
FFO attributable to common shares and units is a non-GAAP
financial measure that is widely recognized as a measure of REIT
operating performance. We consider FFO to be an appropriate
supplemental measure of our operating performance as it is based on
a net income analysis of property portfolio performance that
excludes non-cash items such as depreciation. The historical
accounting convention used for real estate assets requires
straight-line depreciation of buildings and improvements, which
implies that the value of real estate assets diminishes predictably
over time. Since real estate values historically rise and fall with
market conditions, presentations of operating results for a REIT,
using historical accounting for depreciation, could be less
informative. We define FFO, consistent with the NAREIT definition,
as net income, computed in accordance with GAAP, excluding gains
(or losses) from sales of property, plus depreciation and
amortization of real estate assets, plus impairment write-downs of
depreciable real estate, and after adjustments for unconsolidated
partnerships and joint ventures. Adjustments for unconsolidated
partnerships and joint ventures will be calculated to reflect FFO
on the same basis.
Core FFO makes certain adjustments to FFO, removing the
effect of items that do not reflect ongoing property operations
such as stock compensation expense, acquisition expenses,
unrealized gains and losses on derivatives, losses on
extinguishment of debt and modification costs (includes prepayment
penalties incurred and the write-off of unamortized deferred
financing costs and fair market value adjustments of assumed debt),
non-cash interest, one-time weather-related costs, and preferred
stock accretion. We believe that Core FFO is helpful to investors
as a supplemental performance measure because it excludes the
effects of certain items which can create significant earnings
volatility, but which do not directly relate to our core recurring
property operations. As a result, we believe that Core FFO can help
facilitate comparisons of operating performance between periods and
provides a more meaningful predictor of future earnings
potential.
AFFO makes certain adjustments to Core FFO in order to arrive at
a more refined measure of the operating performance of our
portfolio. There is no industry standard definition of AFFO and
practice is divergent across the industry. AFFO adjusts Core FFO
for items that impact our ongoing operations, such as subtracting
recurring capital expenditures (and while we were externally
managed, when calculating the quarterly incentive fee paid to our
former Manager only, we further adjusted FFO to include any
realized gains or losses on our real estate investments). We
believe that AFFO is helpful to investors as a meaningful
supplemental indicator of our operational performance.
Our calculation of Core FFO and AFFO differs from the
methodology used for calculating Core FFO and AFFO by certain other
REITs and, accordingly, our Core FFO and AFFO may not be comparable
to Core FFO and AFFO reported by other REITs. Our management
utilizes FFO, Core FFO, and AFFO as measures of our operating
performance after adjustment for certain non-cash items, such as
depreciation and amortization expenses, and acquisition and pursuit
costs that are required by GAAP to be expensed but may not
necessarily be indicative of current operating performance and that
may not accurately compare our operating performance between
periods. Furthermore, although FFO, Core FFO, AFFO and other
supplemental performance measures are defined in various ways
throughout the REIT industry, we also believe that FFO, Core FFO,
and AFFO may provide us and our stockholders with an additional
useful measure to compare our financial performance to certain
other REITs. While we were externally managed, we also used AFFO
for purposes of determining the quarterly incentive fee paid to our
former Manager in prior periods.
Neither FFO, Core FFO, nor AFFO is equivalent to net income,
including net income attributable to common stockholders, or cash
generated from operating activities determined in accordance with
GAAP. Furthermore, FFO, Core FFO, and AFFO do not represent amounts
available for management's discretionary use because of needed
capital replacement or expansion, debt service obligations or other
commitments or uncertainties. Neither FFO, Core FFO, nor AFFO
should be considered as an alternative to net income, including net
income attributable to common stockholders, as an indicator of our
operating performance or as an alternative to cash flow from
operating activities as a measure of our liquidity.
We have acquired interests in eight additional operating
properties subsequent to September
30, 2017. Therefore, the results presented in the
table below are not directly comparable and should not be
considered an indication of our future operating performance.
The table below reconciles our calculations of FFO, Core FFO and
AFFO to net (loss) income, the most directly comparable GAAP
financial measure, for the three and nine months ended September 30, 2018 and 2017 (in thousands, except
per share amounts):
|
Three Months Ended
September
30,
|
|
|
Nine Months Ended
September
30,
|
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
Net (loss) income
attributable to common shares
|
$
|
(10,334)
|
|
|
$
|
(12,017)
|
|
|
$
|
(29,973)
|
|
|
$
|
563
|
|
|
Add back: Net (loss)
income attributable to operating partnership units
|
|
(3,157)
|
|
|
|
(125)
|
|
|
|
(8,841)
|
|
|
|
4
|
|
|
Net (loss) income
attributable to common shares and units
|
|
(13,491)
|
|
|
|
(12,142)
|
|
|
|
(38,814)
|
|
|
|
567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stockholders
and operating partnership units pro-rata share of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
depreciation and amortization (1)
|
|
14,497
|
|
|
|
10,883
|
|
|
|
43,318
|
|
|
|
30,221
|
|
|
Gain on sale of real
estate investments
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6,399)
|
|
|
Gain on sale of joint
venture interests, net
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(34,313)
|
|
|
FFO Attributable
to Common Shares and Units
|
|
1,006
|
|
|
|
(1,259)
|
|
|
|
4,504
|
|
|
|
(9,924)
|
|
|
Common stockholders
and operating partnership units pro-rata share of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
pursuit costs
|
|
7
|
|
|
|
15
|
|
|
|
78
|
|
|
|
3,072
|
|
|
Non-cash interest
expense
|
|
915
|
|
|
|
249
|
|
|
|
2,977
|
|
|
|
1,510
|
|
|
Unrealized gain on
derivatives
|
|
(225)
|
|
|
|
—
|
|
|
|
(225)
|
|
|
|
—
|
|
|
Loss on
extinguishment of debt and modification costs
|
|
1,573
|
|
|
|
—
|
|
|
|
2,226
|
|
|
|
1,551
|
|
|
Weather-related
losses, net
|
|
13
|
|
|
|
642
|
|
|
|
178
|
|
|
|
642
|
|
|
Non-real estate
depreciation and amortization (1)
|
|
77
|
|
|
|
—
|
|
|
|
216
|
|
|
|
—
|
|
|
Non-recurring
income
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(16)
|
|
|
Non-cash preferred
returns and equity in income of unconsolidated
real estate joint ventures
|
|
(236)
|
|
|
|
(498)
|
|
|
|
(700)
|
|
|
|
(990)
|
|
|
Management
internalization
|
|
—
|
|
|
|
826
|
|
|
|
—
|
|
|
|
1,647
|
|
|
Non-cash equity
compensation
|
|
1,621
|
|
|
|
2,931
|
|
|
|
5,039
|
|
|
|
13,050
|
|
|
Preferred stock
accretion
|
|
1,631
|
|
|
|
905
|
|
|
|
4,141
|
|
|
|
1,889
|
|
|
Core FFO
Attributable to Common Shares and Units
|
$
|
6,382
|
|
|
$
|
3,811
|
|
|
$
|
18,434
|
|
|
$
|
12,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stockholders
and operating partnership units pro-rata share of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normally recurring
capital expenditures
|
|
(685)
|
|
|
|
(392)
|
|
|
|
(1,834)
|
|
|
|
(1,021)
|
|
|
AFFO Attributable
to Common Shares and Units
|
$
|
5,697
|
|
|
$
|
3,419
|
|
|
$
|
16,600
|
|
|
$
|
11,410
|
|
|
Per Share and Unit
Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO Attributable
to Common Shares and Units - diluted
|
$
|
0.03
|
|
|
$
|
(0.05)
|
|
|
$
|
0.15
|
|
|
$
|
(0.38)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core FFO
Attributable to Common Shares and Units -
diluted
|
$
|
0.21
|
|
|
$
|
0.14
|
|
|
$
|
0.60
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO Attributable
to Common Shares and Units - diluted
|
$
|
0.18
|
|
|
$
|
0.13
|
|
|
$
|
0.54
|
|
|
$
|
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares and units outstanding - diluted
|
|
30,994,530
|
|
|
|
26,749,092
|
|
|
|
30,896,740
|
|
|
|
26,129,840
|
|
|
|
(1) The
real estate depreciation and amortization amount includes our share
of consolidated real estate-related depreciation and amortization
of intangibles, less amounts attributable to noncontrolling
interests – partially owned properties, and our similar estimated
share of unconsolidated depreciation and amortization, which is
included in earnings of our unconsolidated real estate joint
venture investments.
|
Earnings Before Interest, Taxes, Depreciation and
Amortization for Real Estate ("EBITDAre")
NAREIT defines earnings before interest, taxes, depreciation and
amortization for real estate ("EBITDAre") (September 2017 White Paper) as net income,
computed in accordance with GAAP, before interest expense, income
taxes, depreciation and amortization expense, and further adjusted
for gains and losses from sales of depreciated operating
properties, and impairment write-downs of depreciated operating
properties.
We consider EBITDAre to be an appropriate supplemental measure
of our performance because it eliminates depreciation, income
taxes, interest and non-recurring items, which permits investors to
view income from operations unobscured by non-cash items such as
depreciation, amortization, the cost of debt or non-recurring
items.
Adjusted EBITDAre represents EBITDAre further adjusted for
non-comparable items and it is not intended to be a measure of free
cash flow for our management's discretionary use, as it does not
consider certain cash requirements such as income tax payments,
debt service requirements, capital expenditures and other fixed
charges.
EBITDAre and Adjusted EBITDAre are not recognized measurements
under GAAP. Because not all companies use identical calculations,
our presentation of EBITDAre and Adjusted EBITDAre may not be
comparable to similarly titled measures of other companies.
Below is a reconciliation of net (loss) income attributable to
common stockholders to EBITDAre (unaudited and dollars in
thousands).
|
|
Three Months
Ended
September
30,
|
|
Nine Months Ended
September
30,
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net (loss) income
attributable to common stockholders
|
|
$
|
(10,334)
|
|
|
$
|
(12,017)
|
|
|
$
|
(29,973)
|
|
|
$
|
563
|
|
Net (loss) income
attributable to noncontrolling interests
|
|
|
(3,513)
|
|
|
|
(507)
|
|
|
|
(9,665)
|
|
|
|
18,392
|
|
Preferred stock
dividends
|
|
|
9,105
|
|
|
|
7,038
|
|
|
|
25,995
|
|
|
|
19,271
|
|
Preferred stock
accretion
|
|
|
1,631
|
|
|
|
905
|
|
|
|
4,141
|
|
|
|
1,889
|
|
Interest expense,
net
|
|
|
12,905
|
|
|
|
7,395
|
|
|
|
36,063
|
|
|
|
22,339
|
|
Depreciation and
amortization
|
|
|
15,307
|
|
|
|
11,763
|
|
|
|
45,628
|
|
|
|
33,094
|
|
Gain on sale of real
estate investments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(50,040)
|
|
Gain on sale of real
estate joint venture interest, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(10,238)
|
|
Loss on
extinguishment of debt and modification costs
|
|
|
1,624
|
|
|
|
-
|
|
|
|
2,277
|
|
|
|
1,639
|
|
EBITDAre
|
|
$
|
26,725
|
|
|
$
|
14,577
|
|
|
$
|
74,466
|
|
|
$
|
36,909
|
|
Acquisition and
pursuit costs
|
|
|
7
|
|
|
|
15
|
|
|
|
78
|
|
|
|
3,215
|
|
Management
internalization
|
|
|
-
|
|
|
|
826
|
|
|
|
-
|
|
|
|
1,647
|
|
Non-real estate
depreciation and amortization
|
|
|
77
|
|
|
|
-
|
|
|
|
216
|
|
|
|
-
|
|
Weather-related
losses, net
|
|
|
13
|
|
|
|
678
|
|
|
|
181
|
|
|
|
678
|
|
Non-cash equity
compensation
|
|
|
1,621
|
|
|
|
2,931
|
|
|
|
5,039
|
|
|
|
13,050
|
|
Non-recurring
income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(17)
|
|
Non-cash preferred
returns and equity in income of
unconsolidated real estate joint
ventures
|
|
|
(236)
|
|
|
|
(498)
|
|
|
|
(700)
|
|
|
|
(990)
|
|
Adjusted
EBITDAre
|
|
$
|
28,207
|
|
|
$
|
18,529
|
|
|
$
|
79,280
|
|
|
$
|
54,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring Capital Expenditures
We define recurring capital expenditures as expenditures that
are incurred at every property and exclude development, investment,
revenue enhancing and non-recurring capital expenditures.
Non-Recurring Capital Expenditures
We define non-recurring capital expenditures as expenditures for
significant projects that upgrade units or common areas and
projects that are revenue enhancing.
Same Store Properties
Same store properties are conventional multifamily residential
apartments which were owned and operational for the entire periods
presented, including each comparative period.
Property Net Operating Income ("Property NOI")
We believe that net operating income, or NOI, is a useful
measure of our operating performance. We define NOI as total
property revenues less total property operating expenses, excluding
depreciation and amortization and interest. Other REITs may use
different methodologies for calculating NOI, and accordingly, our
NOI may not be comparable to other REITs. We believe that this
measure provides an operating perspective not immediately apparent
from GAAP operating income or net income. We use NOI to evaluate
our performance on a same store and non-same store basis; NOI
measures the core operations of property performance by excluding
corporate level expenses and other items not related to property
operating performance and captures trends in rental housing and
property operating expenses. However, NOI should only be used as a
supplemental measure of our financial performance.
Certain amounts in prior periods, related to tenant
reimbursements for utility expenses amounting to zero and
$3.0 million for the three and nine
months ended September 30, 2017, have
been reclassified to other property revenues from property
operating expenses, to conform to the current period. In
addition, property management fees have been reclassified from
property operating expenses.
The following table reflects net (loss) income attributable to
common stockholders together with a reconciliation to NOI and to
same store and non-same store contributions to consolidated NOI, as
computed in accordance with GAAP for the periods presented
(unaudited and amounts in thousands):
|
|
Three Months Ended
(1)
September
30,
|
Nine Months Ended
(2)
September
30,
|
|
|
|
|
2018
|
2017
|
2018
|
2017
|
Net (loss) income
attributable to common shares
|
$
(10,334)
|
$
(12,017)
|
$
(29,973)
|
$
563
|
Add back: Net (loss)
income attributable to operating partnership units
|
(3,157)
|
(125)
|
(8,841)
|
4
|
Net (loss) income
attributable to common shares and units
|
(13,491)
|
(12,142)
|
(38,814)
|
567
|
Add common
stockholders and operating partnership units pro-rata share
of:
|
|
|
|
|
|
Depreciation and
amortization
|
14,497
|
10,883
|
43,318
|
30,221
|
|
Non-real estate
depreciation and amortization
|
77
|
-
|
216
|
-
|
|
Non-cash interest
expense
|
915
|
249
|
2,977
|
1,510
|
|
Unrealized gain on
derivatives
|
(225)
|
-
|
(225)
|
-
|
|
Property management
fees
|
1,077
|
725
|
3,033
|
2,042
|
|
Management
fees
|
-
|
2,802
|
-
|
11,733
|
|
Acquisition and
pursuit costs
|
7
|
15
|
78
|
3,072
|
|
Loss on
extinguishment of debt and modification costs
|
1,573
|
-
|
2,226
|
1,551
|
|
Corporate operating
expenses
|
4,667
|
1,103
|
13,864
|
4,249
|
|
Management
internalization
|
-
|
826
|
-
|
1,647
|
|
Weather-related
losses, net
|
13
|
642
|
178
|
642
|
|
Preferred
dividends
|
9,105
|
7,038
|
25,995
|
19,271
|
|
Preferred stock
accretion
|
1,631
|
905
|
4,141
|
1,889
|
Less common
stockholders and operating partnership units pro-rata share
of:
|
|
|
|
|
|
Other
income
|
-
|
-
|
-
|
16
|
|
Preferred returns and
equity in income of unconsolidated real
estate joint ventures
|
2,789
|
2,688
|
7,877
|
7,865
|
|
Interest income from
related parties
|
5,702
|
2,120
|
16,532
|
5,741
|
|
Gain on sale of joint
venture interests, net of fees
|
-
|
-
|
-
|
6,399
|
|
Gain on sale of real
estate investments
|
-
|
-
|
-
|
34,313
|
Pro-rata share of
properties' income
|
11,355
|
8,238
|
32,578
|
24,060
|
Add:
|
|
|
|
|
|
|
Noncontrolling
interest pro-rata share of partially owned
property income
|
660
|
616
|
1,855
|
2,405
|
Total property
income
|
12,015
|
8,854
|
34,433
|
26,465
|
Add:
|
|
|
|
|
|
|
Interest
expense
|
12,189
|
7,120
|
33,236
|
20,593
|
Net operating
income
|
24,204
|
15,974
|
67,669
|
47,058
|
Less:
|
|
|
|
|
|
|
Non-same store net
operating income
|
7,753
|
156
|
31,335
|
12,037
|
Same store net
operating income
|
$
16,451
|
$
15,818
|
$
36,334
|
$
35,021
|
|
(1) Same
Store sales for the three months ended September 30, 2018 related
to the following properties: Enders Place at Baldwin Park, ARIUM
Grandewood, Park & Kingston, ARIUM Palms, Ashton Reserve,
Sovereign, Sorrel, ARIUM at Palmer Ranch, ARIUM Gulfshore, The
Preserve at Henderson Beach, ARIUM Westside, ARIUM Pine Lakes,
James on South First, ARIUM Glenridge, Roswell City Walk, The
Brodie, Preston View, Wesley Village, Marquis at Crown Ridge,
Marquis at Stone Oak, Marquis at The Cascades, and Marquis at
TPC.
|
(2) Same
Store sales for the nine months ended September 30, 2018 related to
the following properties: Enders Place at Baldwin Park, ARIUM
Grandewood, Park & Kingston, ARIUM Palms, Ashton Reserve,
Sovereign, Sorrel, ARIUM at Palmer Ranch, ARIUM Gulfshore, The
Preserve at Henderson Beach, ARIUM Westside, ARIUM Pine Lakes,
James on South First, ARIUM Glenridge, Roswell City Walk, and The
Brodie
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/bluerock-residential-growth-reit-announces-third-quarter-2018-results-300743773.html
SOURCE Bluerock Residential Growth REIT, Inc.