Bluerock Residential Growth REIT, Inc. (NYSE MKT:BRG) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 11:00 am ET


Bluerock Residential Growth REIT, Inc. (NYSE MKT:BRG) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to Bluerock Residential Growth REIT's Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions]

I would now like to introduce your host for today's call, Christopher Vohs, Chief Financial Officer of Bluerock Residential. Mr. Vohs, please go ahead.

Christopher J. Vohs

Thank you, and welcome to Bluerock Residential Growth REIT's fourth quarter 2019 earnings conference call. This morning, prior to market open, we issued our earnings press release and supplement. The press release can be found on our website at under the Investors tab. In addition, we anticipate filing our 10-K later this month. Following the conclusions of our remarks, we'll be pleased to answer any questions you may have.

Before we begin, please note that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. There are a variety of risks and uncertainties associated with forward-looking statements, and actual results may differ from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the forward-looking statements disclosure in the earnings press release we issued this morning, as well as our SEC filings.

With respect to non-GAAP measures we use in this call, please refer to our earnings supplement for a reconciliation to GAAP and the reason management uses these non-GAAP measures and the assumptions used with respect to our earnings guidance.

And with that, I'll turn the call over to Ramin Kamfar, Chairman and CEO of Bluerock Residential Growth REIT for his remarks.

Ramin Kamfar

Thank you, Chris, and good morning, everyone. In addition to Chris, with me today are several key members of our executive team, including Jordan Ruddy, our President and Chief Operating Officer; Ryan MacDonald, our Chief Acquisitions Officer; and Mike Difranco, our EVP of Operations.

I'll focus my remarks on key strategic accomplishments and financial highlights from the quarter and close with some capital markets commentary, and then Ryan will provide you with operational, transactional and balance sheet and guidance details.

2019 was a noteworthy year in Bluerock Residential's evolution. We continued to successfully execute on our strategic objectives in terms of accretively growing our portfolio of highly-amenitized multifamily assets in knowledge economy growth markets, while growing our NOI and executing our value-add renovation plans. During 2019, on a GAAP basis, net loss to common stockholders nearer to $0.91 per share, compared to a net loss of $1.82 in 2018.

We achieved $0.82 of core FFO in line with our guidance midpoint and strong full-year same-store NOI growth of 5.8%, reflecting our strategic market selection, our strong operational execution and the positive impact of our value-add renovations. Our results were partially dampened by the need to retain a large amount of cash from the proceeds of our large mid-year portfolio sale versus paying down our line of credit in order to be able to execute a 1031 exchange with the process.

We are very active on the capital allocation front, completing seven dispositions at a very attractive 4.7%