EX-99.2 3 tm207763d1_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2

Bluerock Residential Growth REIT, Inc.

Fourth Quarter 2019

Supplemental Financial Information

(Unaudited)

Table of Contents

Fourth Quarter Earnings Release	3

Financial and Operating Highlights	17

Share and Unit Information	18

EBITDAre and Interest Information	19

Financial Statistics	20

Recent Acquisitions and Investments	21

Recent Dispositions	22

Investments in Unconsolidated Real Estate Joint Ventures and Notes and Accrued Interest Receivable from Related Parties	23

Portfolio Information	24

Renovation Table	25

Lease-up and Development Mezzanine/Preferred Investments	26

Condensed Consolidated Balance Sheets	27

Consolidated Statements of Operations	28

Reconciliation of Funds from Operations (FFO) and Core Funds from Operations (CFFO)	29

Mortgages Payable Summary Information	30

2020 Projected Guidance	32

Definitions of Non-GAAP Financial Measures	33

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are based upon the Company’s present expectations, but these statements are not guaranteed to occur, including statements relating to the Company’s operating environment, operating trends, and outlook. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the “Risk Factors” set forth in Item 1A of the Company’s Annual Report on Form 10-K filed by the Company with the U.S. Securities and Exchange Commission (“SEC”) on February 27, 2019, and subsequent filings by the Company with the SEC, including our periodic reports. We claim the safe harbor protection for forward looking statements contained in the Private Securities Litigation Reform Act of 1995.

Bluerock Residential Growth REIT, Inc.

Fourth Quarter Earnings Release

For Immediate Release

Bluerock Residential Growth REIT Announces Fourth Quarter 2019 Results

- Total Fourth Quarter Revenues Grew 5.0% to $52.5 Million -

- Full Year 2019 Same Store Revenue Grew 4.8% -

New York, NY (February 13, 2020) – Bluerock Residential Growth REIT, Inc. (NYSE American: BRG) (“the Company”), an owner of highly amenitized multi-family apartment communities, announced today its financial results for the quarter ended December 31, 2019.

Fourth Quarter Highlights

•

Total revenues grew 5.0% to $52.5 million for the quarter from $50.0 million in the prior year period.

•

Net loss attributable to common stockholders for the fourth quarter of 2019 was ($0.62) per diluted share, as compared to net loss attributable to common stockholders of ($0.55) per diluted share in the prior year period.

•

Property Net Operating Income (“NOI”) grew 5.2% to $28.2 million from $26.8 million in the prior year period.

•

Same store revenue increased 2.4% and same store NOI decreased 0.2%, as compared to the prior year period due to one-time events detailed below. Full year same store revenue and NOI increased 4.8% and 5.8%, respectively.

•

Completed 211 value-add unit upgrades during the quarter producing a 19.3% ROI through increased monthly rental rates.

•

Improved operating margin by 110 basis points year over year to 61.6%.

•

Core funds from operations attributable to common stockholders and unit holders (“CFFO”) was $6.7 million, compared to $6.3 million in the prior year period. CFFO per diluted share was $0.21 for the quarter as compared to $0.20 in fourth quarter 2018.

•

Invested in three multifamily communities totaling 866 units for a total purchase price of $222 million.

•

Invested $48 million in debt and preferred equity investments, including three multifamily communities totaling 481 units in Atlanta and Smyrna, Georgia and additional fundings of seven development projects.

•

Paid quarterly common stock dividend of $0.1625, a 77% payout on a CFFO basis.

•

Terminated the Series B Preferred Stock offering, and initiated sales of Series T preferred stock in December 2019.

•

Consolidated real estate investments, at cost, increased approximately $286 million to $2.1 billion, from December 31, 2018.

Bluerock Residential Growth REIT, Inc.

Fourth Quarter Earnings Release

Full Year 2019 Highlights

Total revenues grew 13.7% to $210.0 million for the year from $184.7 million in the prior year.

Net loss attributable to common stockholders for 2019 was ($0.91) per share, as compared to ($1.82) per share in the prior year.

Property NOI grew 17.4% to $110.9 million, from $94.5 million in the prior year.

Same store revenue and NOI increased 4.8% and 5.8%, respectively, as compared to the prior year.

Completed 979 value-add unit upgrades during the year producing a 22.7% ROI through increased monthly rental rates.

Improved operating margin by 170 basis points year over year to 59.8%.

CFFO increased 2.6% to $25.4 million, from $24.8 million in the prior year. CFFO per share increased 2.5% to $0.82 for the year from $0.80 in the prior year.

For the full year, the Company made investments in seven multifamily communities with 2,365 total units for a total purchase price of $526 million.

Completed the sale of eight assets during 2019, totaling approximately $370 million.

Invested $94 million in debt and preferred equity investments, including five operating multifamily communities totaling 785 units, one development community, and additional fundings of eleven development projects.

Invested $10 million to buyout the noncontrolling interests in three assets.

“The fourth quarter topped a productive year for BRG, as we delivered same-store NOI growth of 5.8% for the year, and completed over $629 million of investments to fuel our ongoing growth. This included an active fourth quarter where we acquired three operating assets and invested in three preferred equity investments,” said Ramin Kamfar, Chairman and CEO. “We continued to target growth markets and expanded our geographic footprint in the West with acquisitions in Arizona and Washington. We are excited about the growth we anticipate as 2020 progresses and we realize the benefits of our recent acquisitions and proven value-add upgrade program.”

Financial Results

Net loss attributable to common stockholders for the fourth quarter of 2019 was ($13.8) million, or ($0.62) per diluted share, compared to a net loss attributable to common stockholders of ($12.8) million, or ($0.55) per diluted share, in the prior year period. Net income attributable to common stockholders included non-cash expenses of $18.6 million, or $0.83 per share in the fourth quarter of 2019 compared to non-cash expenses of $17.7 million or $0.75 per share for the prior year period.

CFFO for the fourth quarter of 2019 was $6.7 million, or $0.21 per diluted share, compared to $6.3 million, or $0.20 per diluted share, in the prior year period. CFFO was primarily driven by growth in property NOI of $1.4 million, interest income of $1.0 million, preferred returns on unconsolidated real estate of $0.2 million arising from investment activity and decreases of $0.7 million and $0.3 million in cash general and administrative expenses and interest expense, respectively. This was primarily offset by a year-over-year rise in preferred stock dividends of $3.2 million.

Bluerock Residential Growth REIT, Inc.

Fourth Quarter Earnings Release

Total Portfolio Performance

$ In thousands, except average rental rates	4Q19			4Q18			Variance			YTD19			YTD18			Variance
Total Revenues ⁽¹⁾	$	52,520		$	50,011			5.0	%	$	209,971		$	184,716			13.7	%
Property Operating Expenses	$	17,600		$	17,493			0.6	%	$	74,449		$	67,997			9.5	%
NOI	$	28,200		$	26,795			5.2	%	$	110,927		$	94,464			17.4	%
Operating Margin		61.6	%		60.5	%		110	bps		59.8	%		58.1	%		170	bps
Occupancy Percentage		93.6	%		94.5	%		(90	)bps		93.8	%		94.1	%		(30	)bps
Average Rental Rate	$	1,319		$	1,280			3.0	%	$	1,311		$	1,251			4.8	%

⁽¹⁾

Including interest income from related parties

For the fourth quarter of 2019, property revenues increased by 5.0% compared to the same prior year period primarily attributable to the increased size of the portfolio. Total portfolio NOI was $28.2 million, an increase of $1.4 million, or 5.2%, compared to the same period in the prior year.

Property NOI margins were 61.6% of revenue for the quarter, an increase of 110 basis points compared to 60.5% of revenue in the prior year quarter. Property operating expenses were up primarily due to non-controllable expenses increases.

Same Store Portfolio Performance

$ In thousands, except average rental rates	4Q19			4Q18			Variance			YTD19			YTD18			Variance
Revenues	$	36,319		$	35,472			2.4	%	$	126,568		$	120,770			4.8	%
Property Operating Expenses	$	14,569		$	13,681			6.5	%	$	51,012		$	49,340			3.4	%
NOI	$	21,750		$	21,791			(0.2	%)	$	75,556		$	71,430			5.8	%
Operating Margin		59.9	%		61.4	%		(150	)bps		59.7	%		59.1	%		60	bps
Occupancy Percentage		93.6	%		94.8	%		(120	)bps		94.1	%		94.3	%		(20	)bps
Average Rental Rate	$	1,324		$	1,278			3.6	%	$	1,320		$	1,255			5.2	%

Same store NOI for the three months ended December 31, 2019 decreased 0.2%, or $0.04 million, compared to the 2018 period. Same store property revenues increased 2.4% as compared to the 2018 period, primarily driven by a 3.6% increase in average rental rates as twenty-four of our twenty-six same store properties recognized rental rate increases during the period. Revenues were moderated by a 120 basis points decrease in average occupancy to 93.6% primarily due to a loss of 27 corporate leases in one asset, and the transition of property management at three assets necessitated by performance issues. Occupancy at the above assets have recovered to 96.2% as of end of January 2020.

Same store expenses for the three months ended December 31, 2019 increased 6.5%, or $0.9 million, compared to the 2018 period, primarily due to non-controllable expense increases. Real estate taxes increased $0.6 million from prior year due to $0.3 million in municipality tax increases and to a $0.3 million real estate tax income item recognized in the prior year. In addition, insurance expenses increased $0.2 million due to industrywide price increases stemming from hurricanes, wildfires, and hail over the past two years.

Renovation Activity

The Company completed 211 value-add unit upgrades during the fourth quarter producing a 19.3% ROI through increased monthly rental rates. The Company completed 979-unit renovations in 2019 producing a 22.7% ROI through increased monthly rental rates.

Bluerock Residential Growth REIT, Inc.

Fourth Quarter Earnings Release

Since inception, within the existing portfolio, the Company has completed 2,645 value-add unit upgrades at an average cost of $5,682 per unit and achieved an average monthly rental rate increase of $111 per unit, equating to a 23.5% ROI on all unit upgrades leased as of December 31, 2019. The Company has identified approximately 4,515 remaining units within the existing portfolio for value-add upgrades with similar projected economics to the completed renovations.

Portfolio Activity

During the fourth quarter, the Company completed investments totaling $270 million. These investments include the following:

•

Funded $26 million in increased development loans related to The Park at Chapel Hill, a development located in Chapel Hill, North Carolina.

•

Acquired a 90% interest in a 358-unit apartment community located in Atlanta, Georgia, known as Chattahoochee Ridge. The total purchase price was $70 million, funded in part by a $45 million mortgage loan secured by the property.

•

Invested $4 million to increase its interest in the Helios development in Atlanta, Georgia.

•

Acquired a 100% interest in a 332-unit apartment community located in Scottsdale, Arizona, known as The District at Scottsdale. The total purchase price was approximately $124 million, funded in part by a $82 million mortgage loan secured by the property. The asset was 60% leased at purchase, as a result of which the Company realized a 50 to 75 basis point cap rate benefit on its purchase price.

•

Acquired a 90% interest in a 176-unit apartment community located in Pasco, Washington, known as Navigator Villas. The total purchase price was approximately $28 million, funded in part by the assumption of a $15 million mortgage loan secured by the property, along with a $6 million supplemental mortgage loan. The Company believes this community has significant value-add renovation upside opportunity.

•

Made preferred equity investments totaling $10 million into three Atlanta, Georgia MSA operating assets with 481-units called Belmont Crossing, Sierra Terrace, and Sierra Village.

•

Funded $8 million under existing preferred and mezzanine commitments in five developments.

•

In addition, contributed its remaining mezzanine loan of $10 million to Cade Boca Raton for an 81.0% interest in the Cade Boca Raton development.

•

Subsequent to year-end, acquired a 100% interest in a 254-unit apartment community in Phoenix, Arizona known as Avenue 25 for a total purchase price of $56 million. The asset offers significant operational upside through institutional property management and substantial value-add opportunity.

Bluerock Residential Growth REIT, Inc.

Fourth Quarter Earnings Release

Balance Sheet

During the fourth quarter, the Company raised gross proceeds of approximately $84.3 million through the issuance of 84,293 shares of Series B Preferred Stock with associated warrants at $1,000 per unit. The Company terminated the offering of Series B Preferred Stock and warrants effective December 20, 2019.

The Company initiated sales of the Series T Preferred Stock in December 2019 and issued 17,400 Series T Preferred shares with gross proceeds of $0.4 million. The Series T Preferred Stock continuous offering offers 20,000,000 preferred shares in the primary offering, along with 12,000,000 preferred shares pursuant to a dividend reinvestment plan. The preferred shares are offered at $25.00 per share and pay cumulative monthly dividends at a 6.15% annual rate, along with an annual stock dividend of up to 0.2% annually for five years.

The Company initiated redemptions of its Series B Preferred Stock during November 2019. The Company redeemed 7,300 shares of Series B Preferred Stock representing a stated value of $7.3 million plus accrued and unpaid dividends by issuing 613,153 shares of Class A common stock.

The Company repurchased 57,883 shares of its Class A common stock at an average price of $11.79 per share, for a total cost of approximately $0.7 million under its $50.0 million share repurchase plan announced in December 2019.

The Company sold 454,237 shares of its Class A common stock at an average price of $11.98 per share, for total proceeds of approximately $5.4 million under its Class A common stock ATM (“At-the-Market”) offering announced in September 2019.

As of December 31, 2019, the Company had $31.7 million of unrestricted cash on its balance sheet, approximately $83.0 million available among its revolving credit facilities, and $1.4 billion of debt outstanding.

Dividend

The Board of Directors authorized, and the Company declared, a quarterly dividend for the fourth quarter of 2019 equal to a quarterly rate of $0.1625 per share on its Class A common stock, payable to the stockholders of record as of December 24, 2019, which was paid in cash on January 3, 2020. A portion of each dividend may constitute a return of capital for tax purposes. There is no assurance that the Company will continue to declare dividends or at this rate.

The Board of Directors authorized, and the Company declared, a quarterly cash dividend on its 8.250% Series A Cumulative Redeemable Preferred Stock for the fourth quarter of 2019, in the amount of $0.515625 per share. In addition, the Board of Directors authorized, and the Company declared, a quarterly cash dividend on its 7.625% Series C Cumulative Redeemable Preferred Stock for the fourth quarter of 2019, in the amount of $0.4765625 per share. Further, the Board of Directors authorized, and the Company declared, a quarterly cash dividend on its 7.125% Series D Cumulative Preferred Stock for the fourth quarter of 2019, in the amount of $0.4453125 per share. The dividends were payable to the stockholders of record on December 24, 2019 and were paid in cash on January 3, 2020.

On October 14, 2019, the Board of Directors authorized, and the Company declared, a monthly dividend of $5.00 per share of Series B Preferred Stock, payable to the stockholders of record as of October 25, 2019, which was paid in cash on November 5, 2019. On October 31, 2019, the Board of Directors authorized, and the Company declared, monthly dividends of $5.00 per share, each prorated on the basis of the actual number of days in the applicable dividend period during which each such share was outstanding. Such prorated dividends were paid in cash on each of (i) December 5, 2019 (to holders of record on November 25, 2019), and (ii) January 3, 2020 (to holders of record on December 24, 2019).

Bluerock Residential Growth REIT, Inc.

Fourth Quarter Earnings Release

On December 20, 2019, the Board of Directors authorized, and the Company declared a monthly dividend of $0.128125 per share of Series T Preferred Stock, prorated on the basis of the actual number of days in the applicable dividend period during which each share was outstanding. Such pro-rated dividends were payable to the stockholders of record on December 24, 2019 and were paid in cash on January 3, 2020.

2020 Guidance

Based on the Company’s current outlook and market conditions, the Company anticipates 2020 CFFO in the range of $0.83 to $0.86 per share. The Company anticipates that earnings growth will be more heavily weighted towards the second half of 2020 as it realizes the upside opportunity from implementation of institutional property management, lease-ups, and value-add renovations at its recent acquisitions. For additional guidance details underlying earnings guidance, please see page 32 of Company’s Fourth Quarter 2019 Earnings Supplement available under Investors on the Company’s website (www.bluerockresidential.com).

Conference Call

All interested parties can listen to the live conference call at 11:00 AM ET on Thursday, February 13, 2020 by dialing +1 (866) 843-0890 within the U.S., or +1 (412) 317-6597, and requesting the "Bluerock Residential Conference."

For those who are not available to listen to the live call, the conference call will be available for replay on the Company’s website two hours after the call concludes, and will remain available until March 13, 2020 at http://services.choruscall.com/links/brg200213.html, as well as by dialing +1 (877) 344-7529 in the U.S., or +1 (412) 317-0088 internationally, and requesting conference number 10138317.

The full text of this Earnings Release and additional Supplemental Information is available in the Investors section on the Company’s website at http://www.bluerockresidential.com.

About Bluerock Residential Growth REIT, Inc.

Bluerock Residential Growth REIT, Inc. (NYSE American: BRG) is a real estate investment trust that focuses on developing and acquiring a diversified portfolio of institutional-quality highly amenitized live/work/play apartment communities in demographically attractive knowledge economy growth markets to appeal to the renter by choice. The Company’s objective is to generate value through off-market/relationship-based transactions and, at the asset level, through value add improvements to properties and operations. The Company is included in the Russell 2000 and Russell 3000 Indexes. BRG has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.

For more information, please visit the Company’s website at www.bluerockresidential.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are based upon the Company’s present expectations, but these statements are not guaranteed to occur. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K filed by the Company with the U.S. Securities and Exchange Commission (“SEC”) on February 27, 2019, and subsequent filings by the Company with the SEC. We claim the safe harbor protection for forward looking statements contained in the Private Securities Litigation Reform Act of 1995.

Bluerock Residential Growth REIT, Inc.

Fourth Quarter Earnings Release

Portfolio Summary

The following is a summary of our operating real estate and mezzanine/preferred investments as of December 31, 2019:

Consolidated Operating Properties	Location	Number of Units		Year Built/ Renovated ⁽¹⁾		Ownership Interest			Average Rent ⁽²⁾			% Occupied ⁽³⁾
ARIUM Glenridge	Atlanta, GA		480		1990		90	%	$	1,262			92.9	%
ARIUM Grandewood	Orlando, FL		306		2005		100	%		1,435			94.1	%
ARIUM Hunter’s Creek	Orlando, FL		532		1999		100	%		1,445			94.7	%
ARIUM Metrowest	Orlando, FL		510		2001		100	%		1,418			93.5	%
ARIUM Westside	Atlanta, GA		336		2008		90	%		1,571			97.0	%
Ashford Belmar	Lakewood, CO		512		1988/1993		85	%		1,658			91.8	%
Ashton Reserve	Charlotte, NC		473		2015		100	%		1,125			95.8	%
Cade Boca Raton	Boca Raton, FL		90		2019		81	%		2,639			92.2	%
Chattahoochee Ridge	Atlanta, GA		358		1996		90	%		1,370			91.3	%
Citrus Tower	Orlando, FL		336		2006		97	%		1,328			92.6	%
Denim	Scottsdale, AZ		645		1979		100	%		1,177			97.2	%
Element	Las Vegas, NV		200		1995		100	%		1,259			94.5	%
Enders Place at Baldwin Park	Orlando, FL		220		2003		92	%		1,799			96.4	%
Gulfshore Apartment Homes, formerly ARIUM Gulfshore	Naples, FL		368		2016		100	%		1,316			92.9	%
James on South First	Austin, TX		250		2016		90	%		1,325			94.0	%
Marquis at The Cascades	Tyler, TX		582		2009		90	%		1,238			93.8	%
Marquis at TPC	San Antonio, TX		139		2008		90	%		1,494			97.1	%
Navigator Villas	Pasco, WA		176		2013		90	%		1,087			95.5	%
Outlook at Greystone	Birmingham, AL		300		2007		100	%		1,018			95.3	%
Park & Kingston	Charlotte, NC		168		2015		100	%		1,331			94.6	%
Pine Lakes Preserve, formerly ARIUM Pine Lakes	Port St. Lucie, FL		320		2003		100	%		1,333			94.7	%
Plantation Park	Lake Jackson, TX		238		2016		80	%		1,362			91.6	%
Providence Trail	Mount Juliet, TN		334		2007		100	%		1,256			91.0	%
Roswell City Walk	Roswell, GA		320		2015		98	%		1,549			94.4	%
Sands Parc	Daytona Beach, FL		264		2017		100	%		1,374			94.7	%
The Brodie	Austin, TX		324		2001		93	%		1,321			96.0	%
The District at Scottsdale	Scottsdale, AZ		332		2018		100	%		2,161			61.1	%
The Links at Plum Creek	Castle Rock, CO		264		2000		88	%		1,456			90.9	%
The Mills	Greenville, SC		304		2013		100	%		1,071			93.4	%
The Preserve at Henderson Beach	Destin, FL		340		2009		100	%		1,474			93.5	%
The Reserve at Palmer Ranch, formerly ARIUM at Palmer Ranch	Sarasota, FL		320		2016		100	%		1,305			96.9	%
The Sanctuary	Las Vegas, NV		320		1988		100	%		1,026			89.4	%
Veranda at Centerfield	Houston, TX		400		1999		93	%		981			96.3	%
Villages at Cypress Creek	Houston, TX		384		2001		80	%		1,155			93.8	%
Wesley Village	Charlotte, NC		301		2010		100	%		1,372			92.4	%
Consolidated Operating Properties Subtotal/Average			11,746						$	1,319	⁽⁴⁾		94.0	%⁽⁴⁾

Mezzanine/Preferred Investments	Location	Actual/Planned Number of Units							Pro Forma Average Rent
Alexan CityCentre	Houston, TX		340						$	1,721	⁽²⁾
Alexan Southside Place	Houston, TX		270							1,710	⁽²⁾
Arlo	Charlotte, NC		286							1,507
Belmont Crossing	Smyrna, GA		192							789	⁽²⁾
Domain at The One Forty	Garland, TX		299							1,469
Helios	Atlanta, GA		282							1,443	⁽²⁾
Mira Vista	Austin, TX		200							977	⁽²⁾
Motif, formerly Flagler Village	Fort Lauderdale, FL		385							2,352
North Creek Apartments	Leander, TX		259							1,358
Novel Perimeter	Atlanta, GA		320							1,749
Riverside Apartments	Austin, TX		222							1,408
Sierra Terrace	Atlanta, GA		135							1,159	⁽²⁾
Sierra Village	Atlanta, GA		154							1,073	⁽²⁾
The Park at Chapel Hill	Chapel Hill, NC		*							*
Thornton Flats	Austin, TX		104							1,551	⁽²⁾
Vickers Historic Roswell	Roswell, GA		79							3,176
Wayforth at Concord	Concord, NC		150							1,707
Whetstone Apartments	Durham, NC		204							1,327	⁽²⁾
Mezzanine and Preferred Investments Subtotal/Average			3,881						$	1,631

Portfolio Properties Total/Average			15,627						$	1,394	⁽⁴⁾

⁽¹⁾ Represents date of last significant renovation or year built if no renovations.

⁽²⁾ Represents the average effective monthly rent per occupied unit for the three months ended December 31, 2019.

⁽³⁾ Percent occupied is calculated as (i) the number of units occupied as of December 31, 2019, divided by (ii) total number of units, expressed as a percentage.

⁽⁴⁾ Excludes District at Scottsdale, which is in lease-up and Cade Boca Raton, which was consolidated on December 31, 2019 and had no operations for the quarter.

* The development is in the planning phase, project specifications are in process.

Bluerock Residential Growth REIT, Inc.

Fourth Quarter Earnings Release

Consolidated Statement of Operations

For the Three and Nine Months Ended December 31, 2019 and 2018

(Unaudited and dollars in thousands except for share and per share data)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2019			2018			2019			2018
Revenues
Net rental income	$	40,565		$	39,534		$	164,498		$	144,325
Other property revenues		5,235			4,754			20,878			18,136
Rental and other property revenues		45,800			44,288			185,376			162,461
Interest income from related parties		6,720			5,723			24,595			22,255
Total revenues		52,520			50,011			209,971			184,716
Expenses
Property operating		17,600			17,493			74,449			67,997
Property management fees		1,192			1,184			4,899			4,391
General and administrative		5,620			5,623			22,553			19,553
Acquisition and pursuit costs		210			37			556			116
Weather-related losses, net		7			107			355			288
Depreciation and amortization		19,355			16,839			70,452			62,683
Total expenses		43,984			41,283			173,264			155,028
Operating income		8,536			8,728			36,707			29,688
Other income (expense)
Other income		68			—			68			—
Preferred returns on unconsolidated real estate joint ventures		2,700			2,435			9,797			10,312
Gain on sale of real estate investments		—			—			48,680			—
Gain on sale of non-depreciable real estate investments		—			—			679			—
Loss on extinguishment of debt and debt modification costs		(335	)		—			(7,258	)		(2,277	)
Interest expense, net		(13,728	)		(16,935	)		(59,554	)		(52,998	)
Total other (expense) income		(11,295	)		(14,500	)		(7,588	)		(44,963	)
Net (loss) income		(2,759	)		(5,772	)		29,119			(15,275	)
Preferred stock dividends		(12,868	)		(9,642	)		(46,159	)		(35,637	)
Preferred stock accretion		(3,415	)		(1,829	)		(10,335	)		(5,970	)
Net loss attributable to noncontrolling interests
Operating Partnership units		(5,032	)		(3,998	)		(6,779	)		(12,839	)
Partially owned properties		(183	)		(460	)		(845	)		(1,284	)
Net loss attributable to noncontrolling interests		(5,215	)		(4,458	)		(7,624	)		(14,123	)
Net loss attributable to common stockholders	$	(13,827	)	$	(12,785	)	$	(19,751	)	$	(42,759	)

Net loss per common share - Basic	$	(0.62	)	$	(0.55	)	$	(0.91	)	$	(1.82	)

Net loss per common share – Diluted	$	(0.62	)	$	(0.55	)	$	(0.91	)	$	(1.82	)

Weighted average basic common shares outstanding		22,729,882			23,702,897			22,649,222			23,845,800
Weighted average diluted common shares outstanding		22,729,882			23,702,897			22,649,222			23,845,800

Bluerock Residential Growth REIT, Inc.

Fourth Quarter Earnings Release

Consolidated Balance Sheets

Fourth Quarter 2019

(Unaudited and dollars in thousands except for share and per share amounts)

	December 31, 2019			December 31, 2018
ASSETS
Net Real Estate Investments
Land	$	268,244		$	200,385
Buildings and improvements		1,752,738			1,546,244
Furniture, fixtures and equipment		67,836			55,050
Construction in progress		68			989
Total Gross Real Estate Investments		2,088,886			1,802,668
Accumulated depreciation		(141,566	)		(108,911	)
Total Net Real Estate Investments		1,947,320			1,693,757
Cash and cash equivalents		31,683			24,775
Restricted cash		19,085			27,469
Notes and accrued interest receivable from related parties		193,781			164,084
Due from affiliates		4,077			2,854
Accounts receivable, prepaids and other assets		15,209			14,395
Preferred equity investments and investments in unconsolidated real estate joint ventures		126,444			89,033
In-place lease intangible assets, net		3,098			1,768
TOTAL ASSETS	$	2,340,697		$	2,018,135

LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY
Mortgages payable	$	1,425,257		$	1,206,136
Revolving credit facilities		18,000			82,209
Accounts payable		1,488			1,486
Other accrued liabilities		27,499			31,690
Due to affiliates		790			726
Distributions payable		13,541			12,073
Total Liabilities		1,486,575			1,334,320
8.250% Series A Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share, 10,875,000 shares authorized; 5,721,460 shares issued and outstanding at December 31, 2019 and 2018		140,355			139,545
6.000% Series B Redeemable Preferred Stock, liquidation preference $1,000 per share, 1,225,000 shares authorized; 536,695 and 306,009 shares issued and outstanding as of December 31, 2019 and 2018, respectively		480,921			272,842
7.625% Series C Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share, 4,000,000 shares authorized; 2,323,750 shares issued and outstanding as of December 31, 2019 and 2018		56,797			56,485
6.150% Series T Redeemable Preferred Stock, liquidation preference $25.00 per share, 32,000,000 shares authorized; 17,400 and no shares issued and outstanding as of December 31, 2019 and 2018, respectively		388			—
Equity
Stockholders’ Equity
Preferred stock, $0.01 par value, 197,900,000 shares authorized; no shares issued and outstanding as of December 31, 2019 and 2018		—			—
7.125% Series D Cumulative Preferred Stock, liquidation preference $25.00 per share, 4,000,000 shares authorized; 2,850,602 shares issued and outstanding at December 31, 2019 and 2018		68,705			68,705
Common stock - Class A, $0.01 par value, 747,509,582 shares authorized; 23,422,557 and 23,322,211 shares issued and outstanding as of December 31, 2019 and 2018, respectively		234			233
Common stock - Class C, $0.01 par value, 76,603 shares authorized; 76,603 shares issued and outstanding as of December 31, 2019 and 2018		1			1
Additional paid-in-capital		311,683			307,938
Distributions in excess of cumulative earnings		(253,132	)		(218,531	)
Total Stockholders’ Equity		127,491			158,346
Noncontrolling Interests
Operating partnership units		19,331			27,613
Partially owned properties		28,839			28,984
Total Noncontrolling Interests		48,170			56,597
Total Equity		175,661			214,943
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY	$	2,340,697		$	2,018,135

Bluerock Residential Growth REIT, Inc.

Fourth Quarter Earnings Release

Non-GAAP Financial Measures

The foregoing supplemental financial data includes certain non-GAAP financial measures that we believe are helpful in understanding our business and performance, as further described below. Our definition and calculation of these non-GAAP financial measures may differ from those of other REITs, and may, therefore, not be comparable.

Funds from Operations and Core Funds from Operations Attributable to Common Stockholders and Unit Holders

We believe that funds from operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), and core funds from operations (“CFFO) are important non-GAAP supplemental measures of operating performance for a REIT.

FFO attributable to common stockholders and unit holders is a non-GAAP financial measure that is widely recognized as a measure of REIT operating performance. We consider FFO to be an appropriate supplemental measure of our operating performance as it is based on a net income analysis of property portfolio performance that excludes non-cash items such as depreciation. The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time. Since real estate values historically rise and fall with market conditions, presentations of operating results for a REIT, using historical accounting for depreciation, could be less informative. We define FFO, consistent with the NAREIT definition, as net income, computed in accordance with GAAP, excluding gains or losses on sales of depreciable real estate property, plus depreciation and amortization of real estate assets, plus impairment write-downs of depreciable real estate, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect FFO on the same basis.

CFFO makes certain adjustments to FFO, removing the effect of items that do not reflect ongoing property operations such as acquisition expenses, non-cash interest, unrealized gains or losses on derivatives, losses on extinguishment of debt and debt modification costs (includes prepayment penalties incurred and the write-off of unamortized deferred financing costs and fair market value adjustments of assumed debt), one-time weather-related costs, gains or losses on sales of non-depreciable real estate property, shareholder activism, stock compensation expense and preferred stock accretion. We believe that CFFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to our core recurring property operations. As a result, we believe that CFFO can help facilitate comparisons of operating performance between periods and provides a more meaningful predictor of future earnings potential.

Our calculation of CFFO differs from the methodology used for calculating CFFO by certain other REITs and, accordingly, our CFFO may not be comparable to CFFO reported by other REITs. Our management utilizes FFO and CFFO as measures of our operating performance after adjustment for certain non-cash items, such as depreciation and amortization expenses, and acquisition and pursuit costs that are required by GAAP to be expensed but may not necessarily be indicative of current operating performance and that may not accurately compare our operating performance between periods. Furthermore, although FFO and CFFO and other supplemental performance measures are defined in various ways throughout the REIT industry, we also believe that FFO and CFFO may provide us and our stockholders with an additional useful measure to compare our financial performance to certain other REITs.

Neither FFO nor CFFO is equivalent to net income, including net income attributable to common stockholders, or cash generated from operating activities determined in accordance with GAAP. Furthermore, FFO and CFFO do not represent amounts available for management's discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. Neither FFO nor CFFO should be considered as an alternative to net income, including net income attributable to common stockholders, as an indicator of our operating performance or as an alternative to cash flow from operating activities as a measure of our liquidity.

Bluerock Residential Growth REIT, Inc.

Fourth Quarter Earnings Release

We have acquired seven operating properties, made six property investments through preferred equity interests or mezzanine loans, and sold seven operating properties subsequent to December 31, 2018. Therefore, the results presented in the table below are not directly comparable and should not be considered an indication of our future operating performance.

The table below reconciles our calculations of FFO and CFFO to net loss attributable to common stockholders, the most directly comparable GAAP financial measure, for the three and nine months ended December 31, 2019 and 2018 (in thousands, except per share amounts):

	Three Months Ended						Year Ended
	December 31,						December 31,
	2019			2018			2019			2018
Net loss attributable to common stockholders	$	(13,827	)	$	(12,785	)	$	(19,751	)	$	(42,759	)
Add back: Net loss attributable to Operating Partnership units		(5,032	)		(3,998	)		(6,779	)		(12,839	)
Net loss attributable to common stockholders and unit holders		(18,859	)		(16,783	)		(26,530	)		(55,598	)
Common stockholders and Operating Partnership units pro-rata share of:
Real estate depreciation and amortization ⁽¹⁾		18,483			15,785			66,670			59,103
Gain on sale of real estate investments		—			—			(48,172	)		—
FFO Attributable to Common Stockholders and Unit Holders		(376	)		(998	)		(8,032	)		3,505
Common stockholders and Operating Partnership units pro-rata share of:
Acquisition and pursuit costs		210			37			556			116
Non-cash interest expense		826			780			3,174			3,757
Unrealized loss on derivatives		32			3,001			2,450			2,776
Loss on extinguishment of debt and debt modification costs		335			—			7,199			2,226
Weather-related losses, net		7			102			313			280
Non-real estate depreciation and amortization		121			85			448			301
Gain on sale of non-depreciable real estate investments		—			—			(679	)		—
Shareholder activism		—			—			393			—
Non-recurring income		(68	)		—			(68	)		—
Non-cash preferred returns on unconsolidated real estate joint ventures		(353	)		(280	)		(1,291	)		(980	)
Non-cash equity compensation		2,506			1,768			10,615			6,807
Preferred stock accretion		3,415			1,829			10,335			5,970
CFFO Attributable to Common Stockholders and Unit Holders	$	6,655		$	6,324		$	25,413		$	24,758

Per Share and Unit Information:
FFO Attributable to Common Stockholders and Unit Holders - diluted	$	(0.01	)	$	(0.03	)	$	(0.26	)	$	0.11
CFFO Attributable to Common Stockholders and Unit Holders - diluted	$	0.21		$	0.20		$	0.82		$	0.80

Weighted average common shares and units outstanding - diluted		31,455,630			31,113,092			30,899,927			30,995,249

⁽¹⁾ The real estate depreciation and amortization amount includes our share of consolidated real estate-related depreciation and amortization of intangibles, less amounts attributable to noncontrolling interests – partially owned properties, and our similar estimated share of unconsolidated depreciation and amortization, which is included in earnings of our unconsolidated real estate joint venture investments.

Bluerock Residential Growth REIT, Inc.

Fourth Quarter Earnings Release

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre")

NAREIT defines earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") (September 2017 White Paper) as net income, computed in accordance with GAAP, before interest expense, income taxes, depreciation and amortization expense, and further adjusted for gains and losses from sales of depreciated operating properties, and impairment write-downs of depreciated operating properties.

We consider EBITDAre to be an appropriate supplemental measure of our performance because it eliminates depreciation, income taxes, interest and non-recurring items, which permits investors to view income from operations unobscured by non-cash items such as depreciation, amortization, the cost of debt or non-recurring items.

Adjusted EBITDAre represents EBITDAre further adjusted for non-comparable items and it is not intended to be a measure of free cash flow for our management’s discretionary use, as it does not consider certain cash requirements such as income tax payments, debt service requirements, capital expenditures and other fixed charges.

EBITDAre and Adjusted EBITDAre are not recognized measurements under GAAP. Because not all companies use identical calculations, our presentation of EBITDAre and Adjusted EBITDAre may not be comparable to similarly titled measures of other companies.

Below is a reconciliation of net loss attributable to common stockholders to EBITDAre (unaudited and dollars in thousands).

	Three Months Ended						Year Ended
	December 31,						December 31,
	2019			2018			2019			2018
Net loss attributable to common stockholders	$	(13,827	)	$	(12,785	)	$	(19,751	)	$	(42,759	)
Net loss attributable to noncontrolling interests		(5,215	)		(4,458	)		(7,624	)		(14,123	)
Preferred stock dividends		12,868			9,642			46,159			35,637
Preferred stock accretion		3,415			1,829			10,335			5,970
Interest expense, net		13,728			16,935			59,554			52,998
Depreciation and amortization		19,309			16,754			70,079			62,382
Gain on sale of real estate investments		—			—			(48,680	)		—
Loss on extinguishment of debt and debt modification costs		335			—			7,258			2,277
EBITDAre	$	30,613		$	27,917		$	117,330		$	102,382
Acquisition and pursuit costs		210			37			556			116
Non-real estate depreciation and amortization		121			85			448			301
Weather-related losses, net		7			107			355			288
Gain on sale of non-depreciable real estate investments		—			—			(679	)		—
Shareholder activism		—			—			393			—
Non-cash equity compensation		2,506			1,768			10,615			6,807
Non-recurring income		(68	)		—			(68	)		—
Non-cash preferred returns on unconsolidated real estate joint ventures		(353	)		(280	)		(1,291	)		(980	)
Adjusted EBITDAre	$	33,036		$	29,634		$	127,659		$	108,914

Bluerock Residential Growth REIT, Inc.

Fourth Quarter Earnings Release

Same Store Properties

Same store properties are conventional multifamily residential apartments which were owned and operational for the entire periods presented, including each comparative period.

Property Net Operating Income ("Property NOI")

We believe that net operating income, or NOI, is a useful measure of our operating performance. We define NOI as total rental and other property revenues less total property operating expenses, excluding depreciation and amortization and interest. Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to other REITs. We believe that this measure provides an operating perspective not immediately apparent from GAAP operating income or net income. We use NOI to evaluate our performance on a same store and non-same store basis; NOI measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance and captures trends in rental housing and property operating expenses. However, NOI should only be used as a supplemental measure of our financial performance.

Bluerock Residential Growth REIT, Inc.

Fourth Quarter Earnings Release

The following table reflects net loss attributable to common stockholders together with a reconciliation to NOI and to same store and non-same store contributions to consolidated NOI, as computed in accordance with GAAP for the periods presented (unaudited and amounts in thousands):

	Three Months Ended						Year Ended
	December 31,						December 31,
	2019			2018			2019			2018
Net loss attributable to common stockholders	$	(13,827	)	$	(12,785	)	$	(19,751	)	$	(42,759	)
Add back: Net loss attributable to Operating Partnership units		(5,032	)		(3,998	)		(6,779	)		(12,839	)
Net loss attributable to common stockholders and unit holders		(18,859	)		(16,783	)		(26,530	)		(55,598	)
Add common stockholders and Operating Partnership units pro-rata share of:
Depreciation and amortization		18,483			15,785			66,670			59,103
Non-real estate depreciation and amortization		121			85			448			301
Non-cash interest expense		826			780			3,174			3,757
Unrealized loss on derivatives		32			3,001			2,450			2,776
Loss on extinguishment of debt and debt modification costs		335			—			7,199			2,226
Property management fees		1,135			1,118			4,645			4,151
Acquisition and pursuit costs		210			37			556			116
Corporate operating expenses		5,545			5,552			22,261			19,416
Weather-related losses, net		7			102			313			280
Preferred dividends		12,868			9,642			46,159			35,637
Preferred stock accretion		3,415			1,829			10,335			5,970
Less common stockholders and Operating Partnership units pro-rata share of:
Other income		68			—			68			—
Preferred returns on unconsolidated real estate joint ventures		2,700			2,435			9,797			10,312
Interest income from related parties		6,720			5,723			24,595			22,255
Gain on sale of real estate investments		—			—			48,172			—
Gain on sale of non-depreciable real estate investments		—			—			679			—
Pro-rata share of properties’ income		14,630			12,990			54,369			45,568
Add:
Noncontrolling interest pro-rata share of partially owned property income		724			774			2,810			2,629
Total property income		15,354			13,764			57,179			48,197
Add:
Interest expense		12,846			13,031			53,748			46,267
Net operating income		28,200			26,795			110,927			94,464
Less:
Non-same store net operating income		6,450			5,004			35,371			23,034
Same store net operating income ⁽¹⁾	$	21,750		$	21,791		$	75,556		$	71,430

⁽¹⁾ Same store portfolio for the three months ended December 31, 2019 consists of 26 properties, which represent 8,779 units. Same store portfolio for the year ended December 31, 2019 consists of 22 properties, which represent 7,613 units.

Contact

Investors:

(888) 558.1031
investor.relations@bluerockre.com

Media:

Josh Hoffman

(208) 475.2380

jhoffman@bluerockre.com

Bluerock Residential Growth REIT, Inc.

Financial and Operating Highlights

For the Three and Twelve Months Ended December 31, 2019

(Unaudited and dollars in thousands except for share and per share data)

	Three Months Ended									Year Ended
	December 31,									December 31,
OPERATING INFORMATION	2019			2018			% Change			2019			2018			% Change

Total revenue	$	52,520		$	50,011			5.0	%	$	209,971		$	184,716			13.7	%

Total assets	$	2,340,697		$	2,018,135			16.0	%	$	2,340,697		$	2,018,135			16.0	%

Property NOI ⁽¹⁾	$	28,200		$	26,795			5.2	%	$	110,927		$	94,464			17.4	%

Property NOI margins		61.6	%		60.5	%		1.8	%		59.8	%		58.1	%		2.9	%

Net loss per common share - Diluted	$	(0.62	)	$	(0.55	)		-		$	(0.91	)	$	(1.82	)		-

CFFO attributable to common stockholders and unit holders per share ⁽²⁾	$	0.21		$	0.20			5.0	%	$	0.82		$	0.80			2.5	%

⁽¹⁾See page 35 for the Company's definition of this non-GAAP measurement and reasons for using it.

⁽²⁾See page 33 for the Company's definition of this non-GAAP measurement and reasons for using it.

Bluerock Residential Growth REIT, Inc.

Share and Unit Information

Fourth Quarter 2019

(Unaudited)

Weighted Average Common Stock and Units Outstanding for the quarter ended December 31, 2019
Class A Common Stock			22,653,279
Class C Common Stock			76,603
Weighted Average Common Stock Outstanding, Diluted			22,729,882
Warrants ⁽¹⁾			295,747
Restricted Stock Grants ⁽²⁾			37,883
Weighted Average Common Stock Outstanding, Diluted			23,063,512
LTIP Units			2,007,627
OP Units			6,384,491
Weighted Average Common Stock and Total Units Outstanding, Diluted			31,455,630

Outstanding Common Stock and Units at December 31, 2019			32,482,092

Outstanding 8.250% Series A Cumulative Redeemable Preferred Stock at December 31, 2019			5,721,460

Outstanding 6.000% Series B Redeemable Preferred Stock at December 31, 2019			536,695

Outstanding 7.625% Series C Cumulative Redeemable Preferred Stock at December 31, 2019			2,323,750

Outstanding 7.125% Series D Cumulative Preferred Stock at December 31, 2019			2,850,602

Outstanding 6.150% Series T Redeemable Preferred Stock at December 31, 2019			17,400

⁽¹⁾ Potential dilution from warrants outstanding from issuance of Series B Preferred Stock offering that are potentially exercisable into 295,747 shares of common stock.

⁽²⁾ Potential dilution from vesting of restricted stock grants issued to employees for 37,883 shares of common stock.

The following table reflects the impact of various LTIP Unit issuances, share repurchases, and other share/unit changes subsequent to September 30, 2019:

Share Type	Shares and units outstanding September 30, 2019		Class A ATM Offering		Class A common from Series B Company redemptions		Class A common from Series B holder redemptions		Class A Share Repurchase			LTIP Issuances		Other			Shares and units outstanding December 31, 2019		Ownership %
Class A Common Stock		22,382,060		454,237		613,153		25,491		(57,883	)		-		5,499			23,422,557		72.10	%
Class C Common Stock		76,603		-		-		-		-			-		-			76,603		0.24	%
Total share equivalents		22,458,663		454,237		613,153		25,491		(57,883	)		-		5,499			23,499,160		72.34	%
OP Units		6,384,512		-		-		-		-			-		(45	)		6,384,467		19.66	%
LTIP Units		2,461,728		-		-		-		-			136,737		-			2,598,465		8.00	%
Total noncontrolling interest		8,846,240		-		-		-		-			136,737		(45	)		8,982,932		27.66	%
Total shares, OP and LTIP Units		31,304,903		454,237		613,153		25,491		(57,883	)		136,737		5,454			32,482,092		100.00	%

Bluerock Residential Growth REIT, Inc.

EBITDAre and Interest Information

Fourth Quarter 2019

(Unaudited and dollars in thousands)

	Three Months Ended
	December 31,
	2019
Q4 EBITDAre Calculation
Net loss attributable to common stockholders	$	(13,827	)
Net loss attributable to noncontrolling interests		(5,215	)
Preferred stock dividends		12,868
Preferred stock accretion		3,415
Interest expense, net		13,728
Depreciation and amortization		19,309
Loss on early extinguishment of debt		335
EBITDAre ⁽¹⁾	$	30,613
Acquisition and pursuit costs		210
Non-real estate depreciation and amortization		121
Weather-related losses, net		7
Non-cash equity compensation		2,506
Non-recurring income		(68	)
Non-cash preferred returns on unconsolidated real estate joint ventures		(353	)
Adjusted EBITDAre	$	33,036

Modified Q4 EBITDAre Calculation ⁽²⁾
Adjusted EBITDAre	$	33,036
Adjustment		1,665
Modified Q4 EBITDAre	$	34,701
Modified Q4 EBITDAre annualized	$	138,804

Modified Q4 Interest Calculation ⁽²⁾⁽³⁾
Interest expense	$	12,846
Adjustment		1,003
Modified Q4 interest expense	$	13,849
Modified Q4 interest expense annualized	$	55,396

⁽¹⁾ See page 34 for a reconciliation of net income attributable to common stockholders to EBITDAre and the Company's definition of EBITDAre and reasons for using it.

⁽²⁾Adjustment to EBITDAre and interest expense represents the estimated impact over the full period of the following activity assuming the transactions had occurred on October 1, 2019: (i) acquisitions of Chattahoochee Ridge, The District at Scottsdale, and Navigator Villas, (ii) preferred investment in Strategic Portfolio, (iii) additional investments at Arlo, Cade Boca Raton, North Creek Apartments, Riverside Apartments, The Park at Chapel Hill, and Wayforth at Concord, and (iv) contribution of Cade Boca Raton’s mezzanine loan investment for common ownership interest. Actual results may differ significantly from the presented, adjusted amounts including annualized amounts.

⁽³⁾ Interest expense excludes non-cash interest expense.

Bluerock Residential Growth REIT, Inc.

Financial Statistics

Fourth Quarter 2019

(Unaudited and dollars in thousands)

	Three Months Ended
	December 31,
	2019
Interest Coverage Ratio
Modified Q4 EBITDAre *	$	34,701
Modified Q4 interest expense ⁽⁴⁾ *		13,849
Interest coverage ratio		2.51	x

Quarterly Fixed Charge Coverage Ratio
Modified Q4 interest expense ⁽⁴⁾ *	$	13,849
Preferred stock dividends		12,868
Total fixed charges	$	26,717
Modified Q4 EBITDAre *		34,701
Modified Q4 EBITDAre fixed charge coverage ratio		1.30	x

Net Debt / Modified EBITDAre Ratio
Total debt ⁽¹⁾	$	1,453,023
Less: cash ⁽³⁾		(50,768
Net debt (total debt less cash)	$	1,402,255
Modified Q4 EBITDAre (annualized)*		138,804
Net debt / modified EBITDAre ratio		10.10	x

Leverage as a Percentage of Assets
Total debt ⁽¹⁾	$	1,453,023
Total undepreciated assets ⁽²⁾		2,482,263
Total debt / total undepreciated assets		58.5	%
Net debt / net undepreciated assets (less cash)		57.7	%

Leverage as a Percentage of Enterprise Value
Total market cap ⁽⁵⁾	$	1,209,900
Total debt ⁽¹⁾		1,453,023
Total enterprise value	$	2,662,923
Total debt / total enterprise value		54.6	%
Net debt / total enterprise value		52.7	%

⁽¹⁾Total debt excludes amortization of fair market value adjustments of $1.8 million and deferred financing costs of $11.6 million.

⁽²⁾ Total undepreciated assets is calculated as total assets plus accumulated depreciation on real estate assets.

⁽³⁾ Cash includes cash, cash equivalents, and restricted cash.

⁽⁴⁾ Interest expense excludes non-cash interest expense.

⁽⁵⁾ Total market cap is calculated by using common shares, preferred shares, and equivalents (OP Units/LTIP Units) multiplied by the December 31, 2019 closing share prices.

* Adjustment to EBITDAre and interest expense represents the estimated impact over the full period of the following activity assuming the transactions had occurred on October 1, 2019: (i) acquisitions of Chattahoochee Ridge, The District at Scottsdale, and Navigator Villas, (ii) preferred investment in Strategic Portfolio, (iii) additional investments at Arlo, Cade Boca Raton, North Creek Apartments, Riverside Apartments, The Park at Chapel Hill, and Wayforth at Concord, and (iv) contribution of Cade Boca Raton’s mezzanine loan investment for common ownership interest. Actual results may differ significantly from the presented, adjusted amounts including annualized amounts. See prior page for calculations.

Bluerock Residential Growth REIT, Inc.

Recent Acquisitions and Investments

(Unaudited)

Property	MSA	Date of Investment	Year Built/ Renovated ⁽¹⁾		Number of Units		Ownership Interest in Property			Purchase Price (in millions)		Average Rent ⁽²⁾
Operating Properties
Element	Las Vegas, NV	06/27/2019		1995		200		100	%	$	41.8	$	1,259
Providence Trail	Nashville, TN	06/27/2019		2007		334		100	%		68.5		1,256
Denim	Phoenix, AZ	07/24/2019		1979		645		100	%		141.3		1,177
The Sanctuary	Las Vegas, NV	07/31/2019		1988		320		100	%		51.8		1,026
Chattahoochee Ridge	Atlanta, GA	11/12/2019		1996		358		90	%		69.8		1,370
The District at Scottsdale	Phoenix, AZ	12/11/2019		2018		332		100	%		124.0		2,161
Navigator Villas	Tri-Cities, WA	12/18/2019		2013		176		90	%		28.5		1,087
Total Operating Properties						2,365				$	525.7	$	1,221

Property	MSA	Date of Investment	Year Built/ Renovated ⁽¹⁾		Number of Units					Investment Amount (in millions)		Average Rent ⁽²⁾
Preferred Equity
Mira Vista	Austin, TX	09/17/2019		1983		200				$	5.3	$	977
Thornton Flats	Austin, TX	09/25/2019		2017		104					4.6		1,551
Belmont Crossing	Atlanta, GA	12/20/2019		1964		192					2.7		789
Sierra Terrace	Atlanta, GA	12/20/2019		1968		135					3.7		1,159
Sierra Village	Atlanta, GA	12/20/2019		1973		154					3.8		1,073
Total Preferred Equity						785					20.1		1,137

Senior/Mezzanine Loan
The Park at Chapel Hill ⁽³⁾	Raleigh-Durham, NC	01/23/2019		*		*					34.5		*
Total Senior/Mezzanine Loan						*					34.5		*

Total						785				$	54.6	$	1,137

⁽¹⁾All dates are for the year construction was completed or expects to be completed, or the date that a significant renovation has or will be completed.

⁽²⁾ Represents the average effective monthly rent per occupied unit for the three months ended December 31, 2019.

⁽³⁾ Property is a development project. The investment originally included a $7.8 million senior loan and a $0.8 million mezzanine loan. On November 1, 2019, the investment increased to a $5.0 million senior loan and a $29.5 million mezzanine loan.

* The development is in the planning phase; project specifications are in process.

Bluerock Residential Growth REIT, Inc.

Recent Dispositions

(Unaudited and dollars in millions)

Property	Location	Date Sold	Number of Units		Ownership Interest in Property			Sale Price		BRG Net Proceeds

Operating Properties
Wesley Village II ⁽¹⁾	Charlotte, NC	3/1/2019		—		100	%	$	1.0	$	1.0
Preston View	Morrisville, NC	7/15/2019		382		100	%		64.0		21.4
Sorrel	Frisco, TX	7/15/2019		352		100	%		57.9		18.0
Sovereign	Fort Worth, TX	7/15/2019		322		100	%		53.0		23.5
ARIUM Palms	Orlando, FL	8/29/2019		252		100	%		46.8		15.3
Marquis at Crown Ridge	San Antonio, TX	9/20/2019		352		90	%		38.4		9.1
Marquis at Stone Oak	San Antonio, TX	9/20/2019		335		90	%		56.6		13.1
Total Operating Properties				1,995					317.7		101.4

Preferred Equity
Leigh House ⁽²⁾	Raleigh, NC	7/15/2019		245		—			52.0		14.2
Total Preferred Equity				245					52.0		14.2

Total				2,240				$	369.7	$	115.6

⁽¹⁾Sale of an undeveloped parcel of land.

⁽²⁾Preferred equity investment.

Bluerock Residential Growth REIT, Inc.

Investments in Unconsolidated Real Estate Joint Ventures and Notes and Accrued Interest Receivable from Related Parties

For the Three and Twelve Months Ended December 31, 2019

(Unaudited and dollars in thousands)

Multifamily Community Name	Investment Balance as of October 1, 2019		Change			Investment Balance as of December 31, 2019		Return as of December 31, 2019			CFFO Earned for the Three Months Ended December 31, 2019		CFFO Earned for the Year Ended December 31, 2019
Preferred and Equity Investments
Operating – Stabilized
Alexan CityCentre	$	12,788	$	-			12,788		17.5	%	$	563	$	2,108
Alexan Southside Place		24,866		-			24,866		6.5	%		407		1,583
Mira Vista		5,250		-			5,250		10.1	%		94		107
Strategic Portfolio		-		10,183			10,183		10.5	%		23		23
Thornton Flats		4,600		-			4,600		9.0	%		93		98
Total operating - stabilized		47,504		10,183			57,687					1,180		3,919

Development
North Creek Apartments		14,691		273			14,964		12.5	%		321		936
Riverside Apartments		9,005		3,337			12,342		12.5	%		215		597
Wayforth at Concord		1,456		3,227			4,683		13.0	%		66		84
Total development		25,152		6,837			31,989					602		1,617

Under Contract/Sold
Helios		19,189		4,474			23,663		7.0	%		339		1,343
Leigh House ⁽¹⁾		522		(442	)		80		-			-		1,155
Whetstone Apartments		12,932		-			12,932		7.2% accrued ⁽²⁾			226		472
Total under contract/sold		32,643		4,032			36,675					565		2,970

Other		100		(7	)		93		⁽³⁾			-		-
	$	105,399	$	21,045		$	126,444				$	2,347	$	8,506

Mezzanine Loans
Lease-up
Arlo ⁽³⁾	$	26,571	$	1,034			27,605		15.0	%	$	998	$	3,757
Domain at The One Forty ⁽³⁾		23,420		10			23,430		15.0	%		875		3,280
Novel Perimeter ⁽³⁾		20,859		8			20,867		15.0	%		779		3,091
Vickers Historic Roswell ⁽³⁾		11,619		5			11,624		15.0	%		434		1,643
Total lease-up		82,469		1,057			83,526					3,086		11,771

Development
Flagler Village ⁽³⁾		75,409		27			75,436		12.9	%		2,426		9,626
The Park at Chapel Hill ⁽⁴⁾		8,570		26,249			34,819		10.9	%		691		1,273
Total development		83,979		26,276			110,255					3,117		10,899

Contributed for Common Equity
Cade Boca Raton		13,813		(13,813	)		-		-			517		1,925
Total contributed for common equity		13,813		(13,813	)		-					517		1,925

	$	180,261	$	13,520		$	193,781				$	6,720	$	24,595

⁽¹⁾Represents remaining net assets in the joint venture after receipt of $14.2 million in proceeds for the preferred equity investment.

⁽²⁾Effective April 1, 2017, the preferred income is being accrued, except for payments totaling $0.5 million received in 2019.

⁽³⁾The Company also holds an equity method investment with 0.5% common ownership.

⁽⁴⁾The investment includes a $5.0 million senior loan and a $29.5 million mezzanine loan.

Bluerock Residential Growth REIT, Inc.

Portfolio Information

Fourth Quarter 2019

(Unaudited)

Multifamily Community Name	Location	Number of Units		Year Built/ Renovated ⁽¹⁾		Average Rent ⁽²⁾			Revenue per Occupied Unit ⁽³⁾			Average Occupancy
Consolidated Operating Properties:
ARIUM Glenridge	Atlanta, GA		480		1990	$	1,262		$	1,379			91.2	%
ARIUM Grandewood	Orlando, FL		306		2005		1,435			1,557			95.1	%
ARIUM Hunter’s Creek	Orlando, FL		532		1999		1,445			1,598			93.1	%
ARIUM Metrowest	Orlando, FL		510		2001		1,418			1,629			92.8	%
ARIUM Westside	Atlanta, GA		336		2008		1,571			1,696			97.4	%
Ashford Belmar	Lakewood, CO		512		1988/1993		1,658			1,833			91.6	%
Ashton Reserve	Charlotte, NC		473		2015		1,125			1,270			93.4	%
Cade Boca Raton	Boca Raton, FL		90		2019		2,639			2,744			89.3	%
Chattahoochee Ridge	Atlanta, GA		358		1996		1,370			1,452			92.0	%
Citrus Tower	Orlando, FL		336		2006		1,328			1,469			93.7	%
Denim	Scottsdale, AZ		645		1979		1,177			1,350			97.0	%
Element	Las Vegas, NV		200		1995		1,259			1,503			92.6	%
Enders Place at Baldwin Park	Orlando, FL		220		2003		1,799			1,914			95.3	%
Gulfshore Apartment Homes, formerly ARIUM Gulfshore	Naples, FL		368		2016		1,316			1,444			88.3	%
James on South First	Austin, TX		250		2016		1,325			1,467			93.0	%
Marquis at The Cascades	Tyler, TX		582		2009		1,238			1,313			93.7	%
Marquis at TPC	San Antonio, TX		139		2008		1,494			1,629			94.1	%
Navigator Villas	Pasco, WA		176		2013		1,087			1,248			95.5	%
Outlook at Greystone	Birmingham, AL		300		2007		1,018			1,191			93.7	%
Park & Kingston	Charlotte, NC		168		2015		1,331			1,390			95.2	%
Pine Lakes Preserve, formerly ARIUM Pine Lakes	Port St. Lucie, FL		320		2003		1,333			1,491			92.1	%
Plantation Park	Lake Jackson, TX		238		2016		1,362			1,477			90.1	%
Providence Trail	Mount Juliet, TN		334		2007		1,256			1,433			93.3	%
Roswell City Walk	Roswell, GA		320		2015		1,549			1,778			95.1	%
Sands Parc	Daytona Beach, FL		264		2017		1,374			1,577			95.2	%
The Brodie	Austin, TX		324		2001		1,321			1,492			96.8	%
The District at Scottsdale	Scottsdale, AZ		332		2018		2,161			2,234			60.0	%
The Links at Plum Creek	Castle Rock, CO		264		2000		1,456			1,586			92.9	%
The Mills	Greenville, SC		304		2013		1,071			1,188			93.7	%
The Preserve at Henderson Beach	Destin, FL		340		2009		1,474			1,622			94.5	%
The Reserve at Palmer Ranch, formerly ARIUM at Palmer Ranch	Sarasota, FL		320		2016		1,305			1,455			93.3	%
The Sanctuary	Las Vegas, NV		320		1988		1,026			1,156			90.8	%
Veranda at Centerfield	Houston, TX		400		1999		981			1,136			94.9	%
Villages of Cypress Creek	Houston, TX		384		2001		1,155			1,278			94.0	%
Wesley Village	Charlotte, NC		301		2010		1,372			1,483			92.9	%

Total Consolidated Operating Properties			11,746			$	1,319	⁽⁵⁾	$	1,466	⁽⁵⁾		93.6	%⁽⁵⁾

Mezzanine/Preferred Investments:
Alexan CityCentre	Houston, TX		340			$	1,721		$	1,876			88.8	%
Alexan Southside Place	Houston, TX		270				1,710			1,838			96.5	%
Arlo	Charlotte, NC		286				1,507	⁽⁴⁾		N/A			N/A
Belmont Crossing	Smyrna, GA		192				789			902			89.6	%
Domain at The One Forty	Garland, TX		299				1,469	⁽⁴⁾		N/A			N/A
Helios	Atlanta, GA		282				1,443			1,542			96.3	%
Mira Vista	Austin, TX		200				977			1,050			95.3	%
Motif, formerly Flagler Village	Fort Lauderdale, FL		385				2,352	⁽⁴⁾		N/A			N/A
North Creek Apartments	Leander, TX		259				1,358	⁽⁴⁾		N/A			N/A
Novel Perimeter	Atlanta, GA		320				1,749	⁽⁴⁾		N/A			N/A
Riverside Apartments	Austin, TX		222				1,408	⁽⁴⁾		N/A			N/A
Sierra Terrace	Atlanta, GA		135				1,159			1,285			97.0	%
Sierra Village	Atlanta, GA		154				1,073			1,169			86.4	%
The Park at Chapel Hill	Chapel Hill, NC		*				*			N/A			N/A
Thornton Flats	Austin, TX		104				1,551			1,744			90.7	%
Vickers Historic Roswell	Roswell, GA		79				3,176	⁽⁴⁾		N/A			N/A
Wayforth at Concord	Concord, NC		150				1,707	⁽⁴⁾		N/A			N/A
Whetstone Apartments	Durham, NC		204				1,327			1,509			94.1	%

Total Mezzanine/Preferred Investments			3,881			$	1,631		$	1,595			93.4	%

Total Portfolio			15,627			$	1,394	⁽⁵⁾	$	1,481	⁽⁵⁾		93.5	%⁽⁵⁾

⁽¹⁾Represents date of last significant renovation or year built if no renovations.

⁽²⁾ Represents the average effective monthly rent per occupied unit for the three months ended December 31, 2019.

⁽³⁾ Revenue per occupied unit is total revenue divided by average number of occupied units for the three months ended December 31, 2019.

⁽⁴⁾ Represents the average pro forma effective monthly rent per occupied unit for all expected units upon stabilization.

⁽⁵⁾ Excludes District at Scottsdale, which is in lease-up, and Cade Boca Raton, which was consolidated on December 31, 2019 and had no operations for the quarter.

* The development is in the planning phase; project specifications are in process.

Bluerock Residential Growth REIT, Inc.

Renovation Table

As of December 31, 2019

(Unaudited)

Units and Investment
	2019				To Date
	Completed		Completed		Total			Unrenovated Units
	in 4Q		Year-to-date		Completed			Remaining
Number of Renovations		211		979		2,645			4,515
Renovation Cost per Unit	$	9,462	$	6,442

Returns
	Cost		Monthly Rent		Return on
	per Unit		Premium		Investment
Weighted Average Returns to Date	$	5,682	$	111		23.5	%

Bluerock Residential Growth REIT, Inc.

Lease-up and Development Mezzanine/Preferred Investments

As of December 31, 2019

(Unaudited)

This table includes forward-looking statements based on current judgments and current knowledge of management, which are subject to certain risks, trends and uncertainties that could cause results to vary from those projected. Please see the paragraph on forward-looking statements on page 2 of this document for a discussion of risks and uncertainties.

											Actual/Estimated Dates for
Multifamily Community Name	Actual/ Planned Number of Units		Total Actual/ Estimated Construction Cost (in millions)		Cost to Date (in millions)		Actual/ Estimated Construction Cost Per Unit		Total Available Financing (in millions)		Construction Start		Initial Occupancy		Construction Completion		Stabilized Operations ⁽¹⁾
Lease-up Investments
Vickers Historic Roswell ⁽²⁾		79	$	31.9	$	30.3	$	403,797	$	22.0		2Q16		2Q18		3Q18		3Q20
Domain at The One Forty ⁽²⁾		299	$	53.3	$	51.4	$	178,261	$	39.2		1Q17		2Q18		4Q18		2Q20
Arlo ⁽²⁾		286	$	60.0	$	58.4	$	209,790	$	41.8		4Q16		2Q18		1Q19		3Q20
Novel Perimeter ⁽²⁾		320	$	71.0	$	68.4	$	221,875	$	44.7		4Q16		3Q18		1Q19		3Q20
Total lease-up units		984

Development Investments
Motif, formerly Flagler Village ⁽²⁾		385	$	135.4	$	117.3	$	351,688	$	70.4		1Q18		2Q20		3Q20		2Q22
North Creek Apartments ⁽³⁾		259	$	44.0	$	24.6	$	169,884	$	23.6		4Q18		3Q20		4Q20		3Q21
Riverside Apartments ⁽³⁾		222	$	37.9	$	14.2	$	170,721	$	20.2		2Q19		4Q20		1Q21		3Q21
Wayforth at Concord ⁽³⁾		150	$	33.5	$	10.3	$	223,333	$	22.3		4Q18		2Q20		3Q21		3Q21
The Park at Chapel Hill		⁽⁴⁾		⁽⁴⁾		⁽⁴⁾		⁽⁴⁾		⁽⁴⁾		⁽⁴⁾		⁽⁴⁾		⁽⁴⁾		⁽⁴⁾
Total development units		1,016

Total units		2,000

⁽¹⁾We define stabilized occupancy as attainment of 90% physical occupancy.

⁽²⁾Represents a mezzanine loan investment. Arlo and Vickers Historic Roswell have an option to purchase indirect property interest upon maturity.

⁽³⁾Represents a preferred equity investment. North Creek Apartments, Riverside Apartments, and Wayforth at Concord have an option to purchase the property at stabilization.

⁽⁴⁾The development is in the planning phase; project specifications are in process.

Bluerock Residential Growth REIT, Inc.

Condensed Consolidated Balance Sheets

Fourth Quarter 2019

(Unaudited and dollars in thousands except for share and per share data)

	December 31, 2019			December 31, 2018
ASSETS
Net Real Estate Investments
Land	$	268,244		$	200,385
Buildings and improvements		1,752,738			1,546,244
Furniture, fixtures and equipment		67,836			55,050
Construction in progress		68			989
Total Gross Real Estate Investments		2,088,886			1,802,668
Accumulated depreciation		(141,566	)		(108,911	)
Total Net Real Estate Investments		1,947,320			1,693,757
Cash and cash equivalents		31,683			24,775
Restricted cash		19,085			27,469
Notes and accrued interest receivable from related parties		193,781			164,084
Due from affiliates		4,077			2,854
Accounts receivable, prepaids and other assets		15,209			14,395
Preferred equity investments and investments in unconsolidated real estate joint ventures		126,444			89,033
In-place lease intangible assets, net		3,098			1,768
TOTAL ASSETS	$	2,340,697		$	2,018,135

LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY
Mortgages payable	$	1,425,257		$	1,206,136
Revolving credit facilities		18,000			82,209
Accounts payable		1,488			1,486
Other accrued liabilities		27,499			31,690
Due to affiliates		790			726
Distributions payable		13,541			12,073
Total Liabilities		1,486,575			1,334,320
8.250% Series A Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share, 10,875,000 shares authorized; 5,721,460 shares issued and outstanding at December 31, 2019 and 2018		140,355			139,545
6.000% Series B Redeemable Preferred Stock, liquidation preference $1,000 per share, 1,225,000 shares authorized; 536,695 and 306,009 shares issued and outstanding as of December 31, 2019 and 2018, respectively		480,921			272,842
7.625% Series C Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share, 4,000,000 shares authorized; 2,323,750 shares issued and outstanding as of December 31, 2019 and 2018		56,797			56,485
6.150% Series T Redeemable Preferred Stock, liquidation preference $25.00 per share, 32,000,000 shares authorized; 17,400 and no shares issued and outstanding as of December 31, 2019 and 2018, respectively		388			—
Equity
Stockholders’ Equity
Preferred stock, $0.01 par value, 197,900,000 shares authorized; no shares issued and outstanding as of December 31, 2019 and 2018		—			—
7.125% Series D Cumulative Preferred Stock, liquidation preference $25.00 per share, 4,000,000 shares authorized; 2,850,602 shares issued and outstanding at December 31, 2019 and 2018		68,705			68,705
Common stock - Class A, $0.01 par value, 747,509,582 shares authorized; 23,422,557 and 23,322,211 shares issued and outstanding as of December 31, 2019 and 2018, respectively		234			233
Common stock - Class C, $0.01 par value, 76,603 shares authorized; 76,603 shares issued and outstanding as of December 31, 2019 and 2018		1			1
Additional paid-in-capital		311,683			307,938
Distributions in excess of cumulative earnings		(253,132	)		(218,531	)
Total Stockholders’ Equity		127,491			158,346
Noncontrolling Interests
Operating partnership units		19,331			27,613
Partially owned properties		28,839			28,984
Total Noncontrolling Interests		48,170			56,597
Total Equity		175,661			214,943
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY	$	2,340,697		$	2,018,135

Bluerock Residential Growth REIT, Inc.

Consolidated Statements of Operations

For the Three and Twelve Months Ended December 31, 2019 and 2018

(Dollars in thousands)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2019			2018			2019			2018
Revenues
Net rental income	$	40,565		$	39,534		$	164,498		$	144,325
Other property revenues		5,235			4,754			20,878			18,136
Rental and other property revenues		45,800			44,288			185,376			162,461
Interest income from related parties		6,720			5,723			24,595			22,255
Total revenues		52,520			50,011			209,971			184,716
Expenses
Property operating		17,600			17,493			74,449			67,997
Property management fees		1,192			1,184			4,899			4,391
General and administrative		5,620			5,623			22,553			19,553
Acquisition and pursuit costs		210			37			556			116
Weather-related losses, net		7			107			355			288
Depreciation and amortization		19,355			16,839			70,452			62,683
Total expenses		43,984			41,283			173,264			155,028
Operating income		8,536			8,728			36,707			29,688
Other income (expense)
Other income		68			—			68			—
Preferred returns on unconsolidated real estate joint ventures		2,700			2,435			9,797			10,312
Gain on sale of real estate investments		—			—			48,680			—
Gain on sale of non-depreciable real estate investments		—			—			679			—
Loss on extinguishment of debt and debt modification costs		(335	)		—			(7,258	)		(2,277	)
Interest expense, net		(13,728	)		(16,935	)		(59,554	)		(52,998	)
Total other (expense) income		(11,295	)		(14,500	)		(7,588	)		(44,963	)
Net (loss) income		(2,759	)		(5,772	)		29,119			(15,275	)
Preferred stock dividends		(12,868	)		(9,642	)		(46,159	)		(35,637	)
Preferred stock accretion		(3,415	)		(1,829	)		(10,335	)		(5,970	)
Net loss attributable to noncontrolling interests
Operating Partnership units		(5,032	)		(3,998	)		(6,779	)		(12,839	)
Partially owned properties		(183	)		(460	)		(845	)		(1,284	)
Net loss attributable to noncontrolling interests		(5,215	)		(4,458	)		(7,624	)		(14,123	)
Net loss attributable to common stockholders	$	(13,827	)	$	(12,785	)	$	(19,751	)	$	(42,759	)

Net loss per common share - Basic	$	(0.62	)	$	(0.55	)	$	(0.91	)	$	(1.82	)

Net loss per common share – Diluted	$	(0.62	)	$	(0.55	)	$	(0.91	)	$	(1.82	)

Weighted average basic common shares outstanding		22,729,882			23,702,897			22,649,222			23,845,800
Weighted average diluted common shares outstanding		22,729,882			23,702,897			22,649,222			23,845,800

Bluerock Residential Growth REIT, Inc.

Reconciliation of Funds from Operations (FFO) and Core FFO (CFFO) Attributable to Common Stockholders and Unit Holders

For the Three and Twelve Months Ended December 31, 2019 and 2018

(Unaudited and dollars in thousands except for share and per share data)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2019			2018			2019			2018
Net loss attributable to common stockholders	$	(13,827	)	$	(12,785	)	$	(19,751	)	$	(42,759	)
Add back: Net loss attributable to Operating Partnership units		(5,032	)		(3,998	)		(6,779	)		(12,839	)
Net loss attributable to common stockholders and unit holders		(18,859	)		(16,783	)		(26,530	)		(55,598	)
Common stockholders and Operating Partnership units pro-rata share of:
Real estate depreciation and amortization ⁽¹⁾		18,483			15,785			66,670			59,103
Gain on sale of real estate investments		—			—			(48,172	)		—
FFO Attributable to Common Stockholders and Unit Holders		(376	)		(998	)		(8,032	)		3,505
Common stockholders and Operating Partnership units pro-rata share of:
Acquisition and pursuit costs		210			37			556			116
Non-cash interest expense		826			780			3,174			3,757
Unrealized loss on derivatives		32			3,001			2,450			2,776
Loss on extinguishment of debt and debt modification costs		335			—			7,199			2,226
Weather-related losses, net		7			102			313			280
Non-real estate depreciation and amortization		121			85			448			301
Gain on sale of non-depreciable real estate investments		—			—			(679	)		—
Shareholder activism		—			—			393			—
Non-recurring income		(68	)		—			(68	)		—
Non-cash preferred returns on unconsolidated real estate joint ventures		(353	)		(280	)		(1,291	)		(980	)
Non-cash equity compensation		2,506			1,768			10,615			6,807
Preferred stock accretion		3,415			1,829			10,335			5,970
CFFO Attributable to Common Stockholders and Unit Holders	$	6,655		$	6,324		$	25,413		$	24,758

Per Share and Unit Information:
FFO Attributable to Common Stockholders and Unit Holders - diluted	$	(0.01	)	$	(0.03	)	$	(0.26	)	$	0.11
CFFO Attributable to Common Stockholders and Unit Holders - diluted	$	0.21		$	0.20		$	0.82		$	0.80

Weighted average common shares and units outstanding - diluted		31,455,630			31,113,092			30,899,927			30,995,249

Bluerock Residential Growth REIT, Inc.

Mortgages Payable Summary Information

As of December 31, 2019

(Unaudited and dollars in thousands)

Property	Outstanding Principal			Interest Rate			Fixed/ Floating	Maturity Date
ARIUM Glenridge	$	49,500			3.03	%	L + 1.33% subject to Cap ⁽¹⁾	September 1, 2025
ARIUM Grandewood		39,385			3.72	%	⁽²⁾	July 1, 2025
ARIUM Hunter’s Creek		72,183			3.65	%	Fixed	November 1, 2024
ARIUM Metrowest		64,559			4.43	%	Fixed	May 1, 2025
ARIUM Westside		52,150			3.68	%	Fixed	August 1, 2023
Ashford Belmar		100,675			4.53	%	Fixed	December 1, 2025
Ashton Reserve I		30,329			4.67	%	Fixed	December 1, 2025
Ashton Reserve II		15,213			3.20	%	L + 1.50% subject to Cap ⁽¹⁾	August 1, 2025
Cade Boca Raton		23,500			3.20	%	L + 1.50% subject to Cap ⁽¹⁾	January 1, 2025
Chattahoochee Ridge		45,338			3.25	%	Fixed	December 5, 2024
Citrus Tower		41,325			4.07	%	Fixed	October 1, 2024
Denim		91,634			3.32	%	Fixed	August 1, 2029
Element		29,260			3.63	%	Fixed	July 1, 2026
Enders Place at Baldwin Park ⁽³⁾		23,337			4.30	%	Fixed	November 1, 2022
Gulfshore Apartment Homes, formerly ARIUM Gulfshore		46,345			3.26	%	Fixed	September 1, 2029
James on South First		26,111			4.35	%	Fixed	January 1, 2024
Marquis at The Cascades I		32,284			3.31	%	L + 1.61% subject to Cap ⁽¹⁾	June 1, 2024
Marquis at The Cascades II		22,531			3.31	%	L + 1.61% subject to Cap ⁽¹⁾	June 1, 2024
Marquis at TPC		16,468			3.31	%	L + 1.61% subject to Cap ⁽¹⁾	June 1, 2024
Navigator Villas		20,515			4.56	%	Fixed	June 1, 2028
Outlook at Greystone		22,105			4.30	%	Fixed	June 1, 2025
Park & Kingston		19,600			3.32	%	Fixed	November 1, 2026
Pine Lakes Reserve, formerly ARIUM Pine Lakes		26,950			3.95	%	Fixed	November 1, 2023
Plantation Park		26,625			4.64	%	Fixed	July 1, 2028
Providence Trail		47,950			3.54	%	Fixed	July 1, 2026
Roswell City Walk		51,000			3.63	%	Fixed	December 1, 2026
The Brodie		34,198			3.71	%	Fixed	December 1, 2023
The District at Scottsdale		82,200			2.97	%	L + 1.25% ⁽¹⁾	December 11, 2020
The Links at Plum Creek		40,000			4.31	%	Fixed	October 1, 2025
The Mills		25,797			4.21	%	Fixed	January 1, 2025
The Preserve at Henderson Beach		48,490			3.26	%	Fixed	September 1, 2029
The Reserve at Palmer Ranch, formerly ARIUM at Palmer Ranch		41,348			4.41	%	Fixed	May 1, 2025
The Sanctuary		33,707			3.31	%	Fixed	August 1, 2029
Veranda at Centerfield		26,100			2.96	%	L + 1.25% subject to Cap ⁽¹⁾	July 26, 2023
Villages of Cypress Creek		26,200			3.23	%	Fixed	October 1, 2022
Wesley Village		40,111			4.25	%	Fixed	April 1, 2024
Total		1,435,023
Fair value adjustments		1,815
Deferred financing costs, net		(11,581	)
Total	$	1,425,257
Weighted Average Interest Rate		3.74	%

⁽¹⁾ In December 2019, one month LIBOR in effect was 1.70%. LIBOR rate is subject to a LIBOR rate cap of 2.50% until at earliest July 1, 2021, except for Cade Boca Raton with a rate cap of 3.00%.

⁽²⁾ The principal balance includes a $19.7 million advance at a fixed rate of 4.35% and a $19.7 million advance at a variable rate of 3.10% as of December 31, 2019.

⁽³⁾ The principal balance includes a $15.8 million loan at a fixed rate of 3.97% and a $7.5 million supplemental loan at a fixed rate of 5.01%.

Bluerock Residential Growth REIT, Inc.

Mortgages Payable Summary Information Continued

As of December 31, 2019

(Unaudited and dollars in thousands)

Mortgages Payable Maturity Schedules

Year	Fixed Rate			Floating Rate			Total			% of Total
2020	$	7,329		$	83,746		$	91,075			6.35	%
2021		10,320			2,124			12,444			0.87	%
2022		59,909			3,384			63,293			4.41	%
2023		124,249			29,190			153,439			10.69	%
2024		221,756			67,835			289,591			20.18	%
Thereafter		723,992			101,189			825,181			57.50	%
	$	1,147,555		$	287,468		$	1,435,023			100.00	%
Fair Value Adjustments		1,815			-			1,815
Subtotal	$	1,149,370		$	287,468		$	1,436,838
Deferred Financing Costs, net		(9,066	)		(2,515	)		(11,581	)
Total	$	1,140,304		$	284,953		$	1,425,257

	Amounts		% of Total			Weighted Average Interest Rates			Weighted Average Maturities (years)

Secured Fixed Rate Debt	$	1,149,370		80.0	%		3.90	%		6.1
Secured Floating Rate Debt ⁽¹⁾		287,468		20.0	%		3.10	%		3.8
Total/Average	$	1,436,838		100.0	%		3.74	%		5.7

⁽¹⁾ $181.8 million or 63% of the floating rate debt is subject to a LIBOR rate cap of 2.50% until at earliest July 1, 2021. $23.5 million or 8% relates to the Cade Boca Raton loan, which has a rate cap of 3.00% through January 1, 2023. The remaining $82.2 million, or 29%, relates to the District at Scottsdale loan, which does not have a rate cap.

Bluerock Residential Growth REIT, Inc.

2020 Projected Guidance

(Unaudited and dollars in thousands except for per share data)

	2020 Outlook ⁽³⁾
	Low			High
Core Funds from Operations Attributable to Common Stockholders and Unit Holders per share	$	0.83		$	0.86

Same Store Growth
Rental income growth		2.5	%		4.0	%
Property operating expense growth		4.3	%		5.3	%
NOI growth		2.0	%		4.0	%

Property management fee as a percentage of revenue		2.6	%		2.5	%
General and administrative expenses ⁽¹⁾		12,400			12,100
Income from preferred equity and mezzanine investments		34,900			34,900
Normal recurring capital expenditures ⁽²⁾		3,100			2,900

Value-add Upgrades
Forecasted unit count		900			1,200
Return on investment		15	%		20	%

Investments
Total gross asset value		500,000			700,000

Dispositions
Total gross asset value		275,000			400,000

Noncontrolling Interest, Preferred Stock and Share Count Assumptions
Noncontrolling interest percentage of CFFO - partially owned properties		4.5	%		4.4	%
Series T preferred stock raise		150,000			200,000
Preferred stock dividends		55,200			56,800
Estimated weighted average diluted common shares and units outstanding		34,100			34,100

⁽¹⁾General and administrative expenses exclude non-cash expenses, such as depreciation and non-cash equity compensation.

⁽²⁾Normally recurring capital expenditures exclude development, investment, revenue enhancing and non-recurring capital expenditures.

⁽³⁾The Company has not reconciled projected Core Funds from Operations Attributable to Common Stockholders and Unit Holders per share (“CFFO”) guidance to the corresponding GAAP financial measure because it does not provide guidance for various reconciling items. The Company is unable to provide guidance for these reconciling items since certain items that impact net income are outside of its control and cannot be reasonably predicted. Accordingly, reconciliations to the corresponding GAAP financial measures are not available.

Bluerock Residential Growth REIT, Inc.

Definitions of Non-GAAP Financial Measures

The foregoing supplemental financial data includes certain non-GAAP financial measures that we believe are helpful in understanding our business, as further described below. Our definition and calculation of these non-GAAP financial measures may differ from those of other REITs, and may, therefore, not be comparable.

Funds from Operations and Core Funds from Operations, Attributable to Common Stockholders and Unit Holders

We believe that funds from operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), and core funds from operations (“CFFO”) are important non-GAAP supplemental measures of operating performance for a REIT.

We have acquired seven operating properties, made six property investments through preferred equity interests or mezzanine loans and sold seven operating properties subsequent to December 31, 2018. The results presented are not directly comparable and should not be considered an indication of our future operating performance (unaudited and dollars in thousands, except share and per share data).

Same Store Properties

Same store properties are conventional multifamily residential apartments which were owned and operational for the entire periods presented.

Bluerock Residential Growth REIT, Inc.

Definitions of Non-GAAP Financial Measures

(Unaudited and dollars in thousands)

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre")

The reconciliations of net loss attributable to common stockholders to EBITDAre and Adjusted EBITDAre are presented in the table below:

	Three Months Ended						Year Ended
	December 31,						December 31,
	2019			2018			2019			2018
Net loss attributable to common stockholders	$	(13,827	)	$	(12,785	)	$	(19,751	)	$	(42,759	)
Net loss attributable to noncontrolling interests		(5,215	)		(4,458	)		(7,624	)		(14,123	)
Preferred stock dividends		12,868			9,642			46,159			35,637
Preferred stock accretion		3,415			1,829			10,335			5,970
Interest expense, net		13,728			16,935			59,554			52,998
Depreciation and amortization		19,309			16,754			70,079			62,382
Gain on sale of real estate investments		—			—			(48,680	)		—
Loss on extinguishment of debt and debt modification costs		335			—			7,258			2,277
EBITDAre	$	30,613		$	27,917		$	117,330		$	102,382
Acquisition and pursuit costs		210			37			556			116
Non-real estate depreciation and amortization		121			85			448			301
Weather-related losses, net		7			107			355			288
Gain on sale of non-depreciable real estate investments		—			—			(679	)		—
Shareholder activism		—			—			393			—
Non-cash equity compensation		2,506			1,768			10,615			6,807
Non-recurring income		(68	)		—			(68	)		—
Non-cash preferred returns on unconsolidated real estate joint ventures		(353	)		(280	)		(1,291	)		(980	)
Adjusted EBITDAre	$	33,036		$	29,634		$	127,659		$	108,914

Bluerock Residential Growth REIT, Inc.

Definitions of Non-GAAP Financial Measures

(Unaudited and dollars in thousands)

Property Net Operating Income ("Property NOI")

We believe that net operating income, or NOI, is a useful measure of our operating performance. We define NOI as total property revenues less total property operating expenses, excluding depreciation and amortization and interest. Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to other REITs. We believe that this measure provides an operating perspective not immediately apparent from GAAP operating income or net income. We use NOI to evaluate our performance on a same store and non-same store basis; NOI measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance and captures trends in rental housing and property operating expenses. However, NOI should only be used as a supplemental measure of our financial performance.

We have acquired seven operating properties, made six property investments through preferred equity interests or mezzanine loans and sold seven operating properties subsequent to December 31, 2018. Therefore, the results presented in the table below are not directly comparable and should not be considered an indication of our future operating performance.

	Three Months Ended						Year Ended
	December 31,						December 31,
	2019			2018			2019			2018
Net loss attributable to common stockholders	$	(13,827	)	$	(12,785	)	$	(19,751	)	$	(42,759	)
Add back: Net loss attributable to Operating Partnership units		(5,032	)		(3,998	)		(6,779	)		(12,839	)
Net loss attributable to common stockholders and unit holders		(18,859	)		(16,783	)		(26,530	)		(55,598	)
Add common stockholders and Operating Partnership units pro-rata share of:
Depreciation and amortization		18,483			15,785			66,670			59,103
Non-real estate depreciation and amortization		121			85			448			301
Non-cash interest expense		826			780			3,174			3,757
Unrealized loss on derivatives		32			3,001			2,450			2,776
Loss on extinguishment of debt and debt modification costs		335			—			7,199			2,226
Property management fees		1,135			1,118			4,645			4,151
Acquisition and pursuit costs		210			37			556			116
Corporate operating expenses		5,545			5,552			22,261			19,416
Weather-related losses, net		7			102			313			280
Preferred dividends		12,868			9,642			46,159			35,637
Preferred stock accretion		3,415			1,829			10,335			5,970
Less common stockholders and Operating Partnership units pro-rata share of:
Other income		68			—			68			—
Preferred returns on unconsolidated real estate joint ventures		2,700			2,435			9,797			10,312
Interest income from related parties		6,720			5,723			24,595			22,255
Gain on sale of real estate investments		—			—			48,172			—
Gain on sale of non-depreciable real estate investments		—			—			679			—
Pro-rata share of properties’ income		14,630			12,990			54,369			45,568
Add:
Noncontrolling interest pro-rata share of partially owned property income		724			774			2,810			2,629
Total property income		15,354			13,764			57,179			48,197
Add:
Interest expense		12,846			13,031			53,748			46,267
Net operating income		28,200			26,795			110,927			94,464
Less:
Non-same store net operating income		6,450			5,004			35,371			23,034
Same store net operating income ⁽¹⁾	$	21,750		$	21,791		$	75,556		$	71,430