Bluerock Residential Growth REIT Prices New 8.25% Series A Cumulative Redeemable Preferred Stock (Puttable After 10/2022)

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Bluerock Residential Growth REIT has priced a new preferred offering with a number of interesting and attractive features.

Bluerock (ticker:BRG) is a apartment REIT which also does a bit of specialty financing for others.  They came public in March, 2014 and so far to date have performed excellently.

The new preferred offering has a tasty 8.25% yield and has the typical 5 year optional redemption feature as it is officially perpetual.


The features we like and essentially turn the issue from a perpetual issue to a ‘Term Preferred’ issue is that beginning in 2022 holders may ‘put’ the shares back to the company for $25/share plus accrued dividends. If you ‘put’ the shares the company has the option to pay you cash or common shares or any combination.

Additionally these shares have a penalty rate beginning in 2022 as well.  The coupon will rise to 10.25% in 2022 and by 50 cents/share on each anniversary date to a maximum coupon of 14%.

We need to do a bit more research on BRG, but believe we will be a buyer of this new preferred.

OTC Temp Ticker has not yet been announced.

Details of the issue are here.


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Tim McPartland

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Tim McPartland
Tim McPartland is a private investor with over 45 years of investing experience. His analysis, research and writing is devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks, exchange traded debt and Master Limited Partnerships.
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