Why did Bluerock Residential (BRG) stock soar 74% on Monday?

December 20, 2021 10:50 AM PST | By Rupam Roy
 Why did Bluerock Residential (BRG) stock soar 74% on Monday?
Image source: Photo by Anna Nekrashevich from Pexels

Highlights

  • Bluerock Residential Growth REIT, Inc. (BRG) has entered into a definitive agreement with Blackstone affiliates.
  • Under the agreement, Blackstone will acquire all outstanding shares of Bluerock’s (BRG) common stock
  • The deal value is US$3.6 billion.

Stocks of Bluerock Residential Growth REIT, Inc. (AMEX: BRG) were trending on Wall Street Monday after the real estate investment trust announced entering a definitive agreement with Blackstone Real Estate affiliates on Dec 20. Under the agreement, Blackstone would acquire all outstanding shares of the common stock of Bluerock (BRG). 

The all-cash deal is worth US$3.6 billion or US$24.25 per BRG share. 

Also Read: Top 3 US 5G stocks to watch in 2022 

Bluerock Residential is a REIT firm that aims to increase its long-term stockholder value by acquiring and developing well-located institutional properties across the US.  

The New York-based company has investments in around 60 real estate projects, comprising over 17,900 units. On the other hand, Blackstone, a leading real estate investment firm, operates globally and is headquartered in New York. 

Also Read: 2 US energy stocks with over 7% dividend yield 

Under the agreement terms, “Blackstone would buy 30 multifamily properties, comprising around 11,000 units, along with a loan book secured by 24 multifamily assets,” Bluerock said in a statement. The properties are of high quality with sprawling greenery. The properties are in Atlanta, Austin, Orlando, Denver, Phoenix, etc. 

Also Read: Nauticus Robotics to go public with CleanTech Acquisition SPAC deal 

 Blackstone will acquire all the outstanding shares of common stock of Bluerock Residential Growth

Also Read: 5 best US oil & gas stocks that returned over 100% in 2021 

Stock performance and financial highlights of Bluerock Residential Growth REIT, Inc. (AMEX: BRG) 

The BRG stock traded at US$26.90 at 9:20 am ET on Dec 20, up 74.22% from its previous close. The firm has a market cap of US$406.80 million, a P/E ratio of 140.36, and an EPS of US$0.11. 

 
Also Read: What is special about NASA’s new James Webb telescope? 

 
The stock saw the highest price of US$16.62 and the lowest price of US$8.80 in the last 52 weeks. Its trading volume on Dec 17 was 2,180,146, up over eight times the average trading volume in the last five days. The stock value jumped 27.81% YTD. 

The company's total revenue was US$53.79 million in Q3, FY21, compared to US$54.58 million in the same quarter of the previous year. Its net income attributable to common shareholders was US$12.54 million, or US$0.45 per diluted share, against a loss of US$17.05 million, or US$0.71 per diluted share in the comparable quarter of the previous year. 
 
Also Read: Why Society Pass (SOPA) stock jumped 47% in pre-market on Monday? 

Bottomline

Bluerock plans to spin off its rental business into a single operation before the acquisition. The newly formed real estate investment trust will be named Bluerock Homes Trust, Inc. (BHOM), which would own interests in around 3,400 homes. The Bluerock shareholders will receive BHOM shares.  


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.


Sponsored Articles


Investing Ideas

Previous Next