Bluerock Homes Trust(BHM) - 2024 Q2 - Quarterly Report

Real Estate Investments - As of June 30, 2024, the company held 21 real estate investments, comprising 4,362 residential units, with consolidated operating investments approximately 92.2% occupied[115] - The company acquired the Villas at Huffmeister, a 294-unit community in Houston, Texas, for $41.2 million, funded by a$24.3 million loan and $17.4 million in cash[121] - A joint venture was established to develop 82 build-for-rent units in Bluffton, South Carolina, with a commitment of$5.3 million, earning a 17.0% annual return[122] - The company sold 37 units for approximately $6.5 million, generating net proceeds of about$6.2 million and a gain of approximately $0.7 million[123] - Total operating units as of June 30, 2024, amounted to 2,732, including 391 units classified as held for sale[129] Financial Performance - Total rental and other property revenues for Q2 2024 reached$11,936,000, a 16.2% increase from $10,270,000 in Q2 2023[130] - Net operating income for the six months ended June 30, 2024, was$11,737,000, reflecting a 4.2% increase from $11,269,000 in the same period of 2023[130] - Average rental rate increased to$1,615 in Q2 2024, a 3.7% rise from $1,557 in Q2 2023[130] - Rental and other property revenues increased by$2.3 million, or 11%, to $22.7 million for the six months ended June 30, 2024, compared to$20.4 million for the same prior year period[143] - Net loss attributable to common stockholders for the three months ended June 30, 2024, was $(1,632) thousand, compared to$(335) thousand for the same period in 2023, representing a significant increase in losses[154] Occupancy Rates - The company’s consolidated operating investments, excluding units held for sale, were approximately 95.4% occupied[115] - The occupancy rate for Peak Housing investments was 94.4% as of June 30, 2024[133] - The occupancy rate for The Cottages at Myrtle Beach was 63.6% as of June 30, 2024[133] - The Woods at Forest Hill had an occupancy rate of 80.5% as of June 30, 2024[133] - Wayford at Innovation Park commenced lease-up in August 2023, with an occupancy rate of 31.4% as of June 30, 2024[133] Expenses and Losses - Property operating expenses increased by $1.9 million, or 20$11.0 million for the six months ended June 30, 2024, compared to $9.1 million for the same prior year period[145] - General and administrative expenses amounted to$2.4 million for the three months ended June 30, 2024, compared to $1.8 million for the same prior year period[139] - Depreciation and amortization expenses were$8.8 million for the six months ended June 30, 2024, compared to $8.0 million for the same prior year period[149] - Funds from Operations (FFO) attributable to common stockholders and unit holders for the six months ended June 30, 2024, was$(8,357) thousand, compared to $(5,513) thousand for the same period in 2023[182] - Core Funds from Operations (CFFO) attributable to common stockholders and unit holders for the three months ended June 30, 2024, was$3,064 thousand, down from $5,436 thousand in 2023, representing a decrease of 43.6$116.0 million in cash available as of June 30, 2024, with an additional capacity of $65 million on revolving credit facilities[158] - Net cash provided by operating activities for the six months ended June 30, 2024, was$2.4 million, despite a net loss of $8.3 million[171] - Net cash used in investing activities during the six months ended June 30, 2024, was$25.2 million, reflecting ongoing investments in real estate[172] - Net cash provided by financing activities during the six months ended June 30, 2024, was $60.0 million, with$17.5 million used for acquiring consolidated real estate investments[175] - The company plans to finance long-term liquidity needs through additional issuances of common and preferred stock, as well as borrowings[163] Dividends and Stock - The company declared a special dividend of $1.00 for both Class A and Class C common stock, payable on January 5, 2024[184] - The board authorized a stock repurchase plan for up to$5 million of Class A common stock, which may be executed based on market conditions[161] - The company issued 1,761,120 shares of 6.0% Series A Redeemable Preferred Stock, raising approximately $38.8 million in net proceeds[127] Interest Rates and Risks - The company continues to monitor inflation and rising interest rates, which could negatively impact residents' ability to pay rents and overall operational results[118] - The company has a total mortgage notes payable of$123.039 million, with a weighted average interest rate of 5.06%[191] - The company has revolving credit facilities totaling $105 million, with a weighted average interest rate of 8.19$128.5 million of the company's debt[192] - A 100-basis point increase or decrease in interest rates would affect interest expense by approximately $50,000 for the quarter ended June 30, 2024[192]