Dane Bowler
Value, hedge fund analyst, REITs, long/short equity

9% Yield And 50% Upside At Bluerock Residential Growth REIT

The Buy Thesis

Bluerock Residential Growth REIT (NYSEMKT:BRG) is a freshly IPOed multi-family REIT surrounded by misconceptions that make it substantially undervalued. Trading at a deep discount to peers on a P/FFO basis as well as to NAV, BRG has material upside as its growth is realized. Its current market price of $12.74 is just over a 40% discount to what we see as its fair value of $18.0 If its true value is $18.0, how could it possible trade so cheaply? Let us begin with a discussion of how BRG became so cheap.

Creation of opportunity

In an investing world driven by Big Data, the market simply does not have enough data points to feel comfortable with...

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