Bluerock Homes Trust(US:BHM)2025-05-09 18:36Real Estate Investments - As of March 31, 2025, the company held 23 real estate investments, comprising 5,048 residential units, with consolidated operating investments approximately 91.9% occupied[148] - As of March 31, 2025, 138 units were classified as held for sale, with an impairment of $0.1 million recorded related to these units[161] - The company raised net offering proceeds of $29.2 million from its DST Program as of March 31, 2025, with total net real estate investments associated with the program at $102.8 million[188] - As of March 31, 2025, the company held 23 real estate investments, comprising 14 consolidated investments and 9 preferred equity and loan investments, totaling 5,048 residential units[206] Financial Performance - Rental and other property revenues increased by $5.1 million, or 48%, to $15.9 million for the three months ended March 31, 2025, compared to $10.8 million for the same period in 2024[172] - Average rent per occupied unit increased by $95, or 5.9%, to $1,695 compared to $1,600 during the prior year period[172] - Average occupancy decreased by 70 basis points from 92.5% to 91.8% year over year[172] - Net operating income increased by $2.5 million, or 43.5%, to $8.3 million for the three months ended March 31, 2025, compared to $5.8 million for the same prior year period[167] - Net operating income (NOI) for the three months ended March 31, 2025, was $8.258 million, up from $5.753 million in the same prior year period[184] - Funds from Operations (FFO) attributable to common stockholders and unit holders for the three months ended March 31, 2025, was $(2.11) million, compared to $0.29 million in 2024[215] - Core Funds from Operations (CFFO) attributable to common stockholders and unit holders for the same period was $1.29 million, down from $3.20 million in 2024[215] Expenses and Costs - Property operating expenses increased by $2.7 million, or 53%, to $7.7 million for the three months ended March 31, 2025, compared to $5.0 million for the same prior year period[174] - Management fees to related party amounted to $2.5 million for the three months ended March 31, 2025, compared to $2.1 million for the same prior year period[177] - General and administrative expenses amounted to $3.1 million for the three months ended March 31, 2025, compared to $2.9 million for the same prior year period[176] - Depreciation and amortization expenses increased to $7.5 million for the three months ended March 31, 2025, from $4.0 million in the same prior year period, primarily due to acquisitions[179] - Other income and expense resulted in a loss of $1.3 million for the three months ended March 31, 2025, compared to income of $0.7 million in the same prior year period, largely due to a $2.7 million increase in interest expense[180] Capital and Financing - The company issued 651,768 shares of 6.0% Series A Redeemable Preferred Stock at $25.00 per share, resulting in net proceeds of approximately $14.1 million[162] - The total net proceeds from the Series A Preferred Stock issuance reached approximately $115.2 million as of March 31, 2025[162] - The company committed to fund total estimated project costs of $56.9 million for the development of Abode Wendell Falls, with remaining estimated costs of $47.5 million[192] - The board authorized a new stock repurchase plan for up to $5 million of Class A common stock, effective February 28, 2025[196] - The company expects to maintain distributions on its Series A Preferred Stock in accordance with terms requiring monthly dividends[202] Debt and Interest Rate Management - Contractual obligations as of March 31, 2025, included $258.9 million in mortgages payable and $85 million in the Amended DB Credit Facility[191] - The total principal payments on mortgage notes payable amount to $258.9 million, with a weighted average interest rate of 5.20%[225] - The company has interest rate caps and swaps covering $150.3 million of its debt to manage interest rate risk[227] - A 100-basis point change in interest rates would have a negligible impact on the company's variable rate debt for the quarter ended March 31, 2025[228] - The amended DB Credit Facility has a principal amount of $85 million with a weighted average interest rate of 7.12%[225] - The company is exposed to interest rate risk primarily through borrowing activities, with inherent roll-over risk as borrowings mature[223] - Interest rate risk is monitored using various techniques, including evaluating expected cash flows and sensitivity to interest rate changes[224] Economic Environment - The company operates in a challenging economic environment, facing risks from inflation, rising interest rates, and potential impacts on tenant rent payments[154] Liquidity - As of March 31, 2025, liquidity included $134.7 million in cash and a capacity of $50 million available on the KeyBank Credit Facility[193] - For the three months ended March 31, 2025, net cash provided by operating activities was $1.0 million, following a net loss of $7.3 million[206] - The company reported net cash provided by investing activities of $19.0 million during the same period, primarily due to various investment activities[206] Off-Balance Sheet Arrangements - The company has off-balance sheet arrangements that may materially affect its financial condition, including preferred equity interests in eight joint ventures[205] Tax Compliance - The company must distribute at least 90% of its REIT taxable income annually to maintain its REIT status for federal income tax purposes[220]