Bluerock Homes Trust(US:BHM)2023-11-08 16:00Revenue Growth - Rental and other property revenues increased by $1.6 million, or 18%, to $10.2 million for the three months ended September 30, 2023, compared to $8.6 million for the same prior year period, primarily due to unit count growth of 137 units [373]. - For the nine months ended September 30, 2023, rental and other property revenues increased by $7.5 million, or 32%, to $30.6 million compared to $23.1 million for the same prior year period, driven by unit count growth of 542 units [377]. - Total property income for the nine months ended September 30, 2023, was $12,589 million, an increase from $7,744 million in the prior year [383]. Operating Performance - As of September 30, 2023, consolidated operating investments were approximately 94.4% occupied, with a total of 3,996 residential units across 17 investments [366]. - Net operating income for the three months ended September 30, 2023, was $5,089 million, compared to $4,168 million for the same period in 2022 [383]. - Cash flows from operating activities for the nine months ended September 30, 2023, were $15,269,000, compared to $9,156,000 for the same period in 2022 [425]. Expenses - General and administrative expenses amounted to $5.5 million for the nine months ended September 30, 2023, compared to $5.0 million for the same prior year period [379]. - Property operating expenses increased by $3.2 million, or 29%, to $14.2 million for the nine months ended September 30, 2023, compared to $11.0 million for the same period in 2022 [409]. - Acquisition and other transaction costs amounted to $1.8 million for the nine months ended September 30, 2023, compared to $0.1 million for the same prior year period [410]. Financial Position - The total stockholders' equity decreased by $4.9 million from $160.0 million as of December 31, 2022, to $155.1 million as of September 30, 2023 [401]. - The fair value of mortgages payable was estimated at $91.9 million as of September 30, 2023 [273]. - The weighted average interest rate on mortgage notes payable was 4.21% as of September 30, 2023 [429]. Net Income and Loss - For the three months ended September 30, 2023, the net loss attributable to common stockholders was $(1,068) million, compared to a net income of $287 million for the same period in 2022 [383]. - The net loss attributable to common stockholders for the three months ended September 30, 2023, was $1,068,000, compared to a net income of $287,000 for the same period in 2022 [425]. - Funds from operations (FFO) attributable to common stockholders for the three months ended September 30, 2023, were $430,000, down from $3,598,000 in the same period last year [425]. Investment Activities - The acquisition of 18 single-family residential units in Savannah, Georgia was completed on February 23, 2023, for a purchase price of approximately $4.2 million, fully funded in cash [357]. - The company funded approximately $7.5 million of preferred equity investments in various joint ventures during the nine months ended September 30, 2023 [400]. - The company anticipates improvements in results from its existing portfolio due to future investments in single-family residential properties and build-to-rent developments [415]. Market Conditions and Future Outlook - The company continues to monitor inflation and rising interest rates, which could negatively impact residents' ability to pay rents and overall results of operations [355]. - The company plans to continue monitoring debt markets and access advantageous borrowings as market conditions permit [387]. - The company expects to meet its liquidity requirements for the next 12 months through available cash balances, cash flows from operations, and proceeds from various financing arrangements [415]. - The company may supplement its capital for short-term liquidity needs through potential offerings of common and preferred stock, depending on market conditions [416]. Dividends and Stock Offerings - The company filed a prospectus supplement offering a maximum of 20,000,000 shares of 6.0% Series A Redeemable Preferred Stock at $25.00 per share, aiming for a maximum offering amount of $500 million [370]. - The company intends to maintain its qualification as a REIT by distributing at least 90% of its REIT taxable income to stockholders annually [367]. - The company plans to maintain monthly dividends on its Series A Preferred Stock, with future distributions potentially coming from various sources including cash flow from operations and asset sales [419]. Interest Income - Interest income from loan investments decreased by $0.1 million, or 100%, to zero for the three months ended September 30, 2023, due to the payoff of one loan since September 30, 2022 [363]. - Interest income from loan investments decreased by $1.3 million, or 100%, to zero for the nine months ended September 30, 2023, due to the payoff of two loans in 2022 [408]. Interest Rate Sensitivity - A 100-basis point change in interest rates would affect interest expense by approximately $50,000 for the quarter ended September 30, 2023 [430]. - The average occupancy rate across properties was 94.4% [402].