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Comments (20)

anomaly1 profile picture
the outstanding commmon shares are increasing due to conversion of the preferred shares to common. (redemption of high-cost preferred stock) From an accounting standpoint, this is simply shifting the payout away from the fixed % preferred to the lower yielding common stock dividend. Obviously, some stock buyback is helping with dilution of the common stock shareholders. Unfortunately, this is a negative for common stock shareholders because mgmt (per last CC) has not stated when the conversion of preferred to common will cease.
EarningsMarq profile picture
@anomaly1 running some basic math I have the common equity’s fair market NAV pegged at $12.50-$14/share. Wall Street always punishes these stocks so I would expect a more realistic $11/share at some point. Going to take some patience.
BRG looks to me a lot like IRT did a few years ago. IRT is slowly improving debt ratios and the market likes it. Similar geography. IRT went internally managed a couple years ago. I think BRG can do the same things, especially with debt getting printed away like crazy. Can anybody tell me about the management agreement?
EarningsMarq profile picture
Still think it’s undervalued....interested to hear out the earnings call
SbLawso profile picture
Excellent analysis, thank you
Honestly while the debt is high - price has come down some and 6+% for a appt reit that can likely grow its revenue (rent raises) to cover slight interest rates changes over the next several years should perform well. Also while not brg because of the debt I wouldn’t be surprised if other big reits in the appt space start buying some of these smaller ones at some point if they stay cheap
EarningsMarq profile picture
Any news on why the price is dropping? Anyone else jumping back into BRG at these prices near $10? Long BRG
@EarningsMarq I’m buying below 10, just sold my CPT and rolled it into BRG. Double the yield and better geography for slightly worse financials
Company with high debt and lots of real estate seems like a great hedge to inflation. Debt becomes worth less, real estate becomes worth more. Magical equity creation. Abracadabra!
WSLegend profile picture
In a very healthy market for residential REITs, I currently have full (for me) positions in both BRG and BRT. Up big on both in a relatively short time.
True Orion profile picture
@WSLegend If you are a long term investor aiming on total return that makes sense. It really comes down to each individual's investment strategy.
08 Mar. 2021
“For 2021, the company has a weighted average interest rate of 2.07%, which in 2022 will become 3.46% , using today's assumptions.” Can you detail the assumptions you are using to get the 3.46% rate?
True Orion profile picture
@cdicke Hello and thanks for the comment. The 3.46% figure is found in the company's annual report.
10 Mar. 2021
@True Orion Ok, I see where you made the mistake. The average cost of all mortgages is 3.45% the average cost of the mortgages maturing in 2021 is 2.07% and the average cost of mortgages maturing in 2022 is 3.46%. Look at the table on page 88 of the 10-K. Your calculation that interest expense will go up $4.3mm next year is not accurate. Could you please correct.
True Orion profile picture
@cdicke Thank you for your input. I think that we are saying the same thing here. And the 4.3 million increase in interest rate expenses is the management's words, not mine.
toh192 profile picture
I just don’t feel good about BRT if APTS is our benchmark.
AVB, CPT, ESS even BRG (market cap) would make sense.
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