Bluerock Homes Trust(US:BHM)2025-11-06 21:07Real Estate Investments - As of September 30, 2025, the company held 22 real estate investments, comprising 5,282 residential units, with a consolidated operating investment occupancy rate of approximately 91.8%[177] - The company acquired Southern Pines Reserve, a 272-unit residential community, for $56.6 million, funded by a $30.7 million senior loan, $20.0 million from the KeyBank Credit Facility, and $8.9 million in cash[187] - The company also acquired Skytop Apartments, a 361-unit residential community, for $88.5 million, financed by a $57.5 million senior loan, $22.0 million from the KeyBank Credit Facility, and $13.0 million in cash[188] - A joint venture acquired land in Shawnee, Kansas, for $2.3 million to develop a 188-unit residential community, with a construction loan agreement for up to $46.5 million[190] - The company increased its interest in the Peak JV 2 and Peak JV 3 portfolios from 80% to 100% and from 56% to 100%, respectively, for a total investment of $1.1 million[191] - The company sold 104 consolidated operating units for approximately $18.4 million, generating net proceeds of approximately $13.3 million after mortgage paydown[192] Financial Performance - Rental and other property revenues increased by 38.7% to $16.6 million for the three months ended September 30, 2025, compared to $12.0 million for the same period in 2024[206] - Net operating income for residential communities rose by 121.1% to $4.7 million for the three months ended September 30, 2025, compared to $2.1 million for the same period in 2024[206] - The average occupancy percentage for all units was 91.2% for the three months ended September 30, 2025, an increase of 30 basis points compared to 90.9% for the same period in 2024[206] - The total stockholders' equity decreased by $7.4 million from $139.1 million as of December 31, 2024, to $131.7 million as of September 30, 2025, primarily due to dividends declared of $8.2 million and preferred stock accretion of $3.4 million[202] - Net operating income (NOI) for the three months ended September 30, 2025, was $7,881 thousand, an increase of 42.1% from $5,542 thousand in the same period of 2024[234] - The company experienced a net loss attributable to common stockholders of $(8.621) million for the nine months ended September 30, 2025[263] Cash Flow and Financing - The company had $162.7 million in cash available as of September 30, 2025, and a capacity of $50 million on the KeyBank Credit Facility, with $28 million available for use in the DST Program[241] - The company reported net cash provided by operating activities of $28.3 million for the nine months ended September 30, 2025, following a net loss of $23.1 million[254] - During the same period, net cash used in investing activities was $109.0 million, including $155.7 million for the acquisition of real estate investments[255] - Net cash provided by financing activities was $132.8 million, primarily from borrowings of $88.3 million on mortgages payable and $72.4 million from contributions from noncontrolling interests[257] Occupancy and Rental Rates - Average rent per occupied unit increased by $60, or 3.7%, to $1,695 compared to $1,635 during the prior year period[211] - The average rental rate for scattered single-family homes increased by 3.6% to $1,626 for the three months ended September 30, 2025, compared to $1,570 for the same period in 2024[206] - Consolidated occupancy rate was strong at 93.7% as of September 30, 2025, although future periods may see reduced tenant retention and lease applications[236] Preferred Stock and Dividends - The company has elected to qualify as a REIT, requiring it to distribute at least 90% of its REIT taxable income to stockholders annually[179] - The company declared a monthly dividend of $0.125 for both Class A and Class C common stock, payable from April 2025 to January 2026[265] - The company expects to maintain distributions on its Series A Preferred Stock in accordance with terms requiring monthly dividends, funded by cash flow from operations and other sources[251] Debt and Interest Rate Management - As of September 30, 2025, the company has outstanding mortgage notes payable totaling $404 million, with a weighted average interest rate of 5.48%[271] - The company has a revolving credit facility of $22 million with a weighted average interest rate of 7.76%[271] - Interest rate caps and swaps are in place to manage interest rate risk, covering $100.8 million of the company's debt[273] - A 100-basis point change in interest rates could result in an increase or decrease of approximately $112,000 in interest expense for the quarter ended September 30, 2025[274] - The company is exposed to interest rate risk primarily through its borrowing activities, with inherent roll-over risk as borrowings mature[269] Other Financial Metrics - Depreciation and amortization expenses increased to $21.4 million for the nine months ended September 30, 2025, compared to $13.7 million for the same prior year period[228] - Other income and expense amounted to an expense of $5.0 million for the nine months ended September 30, 2025, compared to income of $8.0 million for the same prior year period[229] - Income tax expense amounted to $1.4 million for the nine months ended September 30, 2025, compared to zero for the same prior year period[231] - Management fees to related party increased to $7.8 million for the nine months ended September 30, 2025, compared to $6.6 million for the same prior year period[226] Strategic Focus - The company’s strategy focuses on generating attractive risk-adjusted returns through acquiring and developing residential units and Value-Add renovations[176] - The company operates in markets with a focus on the knowledge-economy and high-quality of life growth markets in the Sunbelt and Western United States[176] - The company intends to finance long-term liquidity requirements through net proceeds from additional issuances of common and preferred stock, as well as future acquisition or project-based borrowings[247]