Bluerock Homes Trust, Inc. · AMEX:BHM
Bluerock Homes Trust — NAREIT Conference June 2024
25 slides from Bluerock Homes Trust's conference presentation, June 2024
Slide 1: The Single-Family Rental Opportunity
1 T H E S I N G L E - F A M I LY R E N TA L OPPORTUNITY NAREIT Conference June 2024 Sponsored By Listed On
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements The information in this presentation has been prepared solely for informational purposes by Bluerock Homes Trust, Inc. (“BHM”) and does not constitute an offer to sell or the solicitation of an offer to purchase any securities. This presentation is not, and should not be
Slide 3: Bluerock Homes Trust (NYSE American: BHM)
3 Bluerock Homes Trust (NYSE American: BHM) Building an Infill Portfolio of Build-To-Rent (BTR) Assets Through Acquisitions & Development Started as spinout from Bluerock Residential Growth REIT (BRG), which realized a 145% premium in cash and value of shares of BHM spinout1, led by the same managem
Slide 4: Experienced Management Team With an Industry Leading Track Record
4 Experienced Management Team With an Industry Leading Track Record Well-Aligned Management with 28 Years Average Experience and ~66% Equity Ownership1 Executed Sale of Bluerock Residential Growth REIT (“BRG”) to Blackstone, Which Represented Largest M&A Premium in REIT M&A History2 Ramin Kamfar
Slide 5: Sponsor With Industry Leading Residential Investing Track Record
5 Sponsor With Industry Leading Residential Investing Track Record Bluerock Residential Track Record Overview SOLD 25% IRR / 2x MOIC 44,000 on 127 monetized investments Investment Units Bluerock Residential Growth $8.4B $350M Zero REIT has been acquired by Realized GAV Credit Investments Realized Cr
Slide 6: BHM is Building an Infill Portfolio Of Build-To-Rent Assets
6 BHM is Building an Infill Portfolio Of Build-To-Rent (BTR) Assets In Knowledge Economy Growth Markets Through Acquisitions & Development Invest in First Ring Focus on Target Newer-Built Suburban / Infill Knowledge Economy BTR Assets Locations Growth Markets1 Invest in Equity & Team with Significan
Slide 7: Market Opportunity
7 MARKET OPPORTUNITY
Slide 8: Undersupply has Left For-Sale Home Inventories at an All Time Low
8 Undersupply has Left For-Sale Home Inventories at an All Time Low The national housing shortage has worsened since the Great Financial Crisis. Overall demographic growth is expected to generate demand for an additional 15 million housing units over the next decade1 TTM Average National Existing Ho
Slide 9: Demand from Millennials is Expected to Reach an All Time High
9 Demand from Millennials is Expected to Reach an All Time High Millennials in Prime Household Formation Years Single-Family Renter Households are Driving SFR Housing Demand by Age Cohort Projected Population Growth (%) MILLIONS There are nearly as many 4.0 SF renter households over 3.7M 3.6M age 55
Slide 10: Affordability Gap Between Mortgage Payments & Average Rent Widest On Record
10 Affordability Gap Between Mortgage Payments & Average Rent Widest On Record The median cost to rent vs. own a home is at its widest gap on record, reaching more than $1,300 per month, 4x higher than historical averages Source: Marcus and Millichap, What the Affordability Gap Means for Investors,
Slide 11: Targeting the Knowledge Worker in Demographically Attractive Growth Markets
11 Targeting the Knowledge Worker in Demographically Attractive Growth Markets Average earnings per worker (inflation adjusted) 2029 Employment Growth CAGRs1 Advanced 1.2% Industries: +68% 0.7% Non-Advanced 0.3% Industries: +25% Sources: [Employment Growth] Bureau of Labor Statistics and U.S. Census
Slide 12: Population Growth in the Sunbelt Translates to a Housing Need
12 Population Growth in the Sunbelt Translates to a Housing Need • The Sun Belt represents 50% of the nation’s population (326M) and is expected to rise to 55% by 20301 • Over the past decade, the region accounted for 75% of U.S. population growth (15 out of the total 21MM) • Over the next decade, S
Slide 13: Growth Strategy
13 G R O W T H S T R AT E G Y
Slide 14: BHM Target Capital Allocation Strategy
14 BHM Target Capital Allocation Strategy Balanced with Attractive Total Return Investment Opportunities and Higher Yielding Credit Investments Operating Portfolio Mezz / Preferred Portfolio • Primarily Class B+ / A assets • Provides stable income stream with lower LTV basis profile • Target above t
Slide 15: BHM Portfolio Overview
15 BHM Portfolio Overview 4,350+ Homes & Growing1 ~2,750 Operating Homes 1,600+ Preferred Equity / Mezzanine Loans 1,875 870 400+ 1,200+ Scattered Site / Clustered Build-to-Rent (BTR) Stabilized Homes Under Development / Lease-Up ~2,750 homes2 94.5% Occupancy3 LAKE SHORE | SAVANNAH, GA WAYFORD AT CO
Slide 16: Opportunistic & Active Recyclers of Capital to Maximize ROIC
16 Opportunistic & Active Recyclers of Capital to Maximize ROIC Taking Advantage of Strong “Retail” End-User by Selling Non-Core Assets One-by-One @ 4.0% Cap Rate Active One-Off Dispo Program Recycled into for Scattered Homes Build-to-Rent Investments Cap Rates Stabilized Cap 4.0% on One-Off Disposi
Slide 17: Closed Deal Highlight: Off-Market Discount BTR Investment in Raleigh, NC
17 Closed Deal Highlight Off-Market Discount BTR Investment with National Homebuilder in Raleigh, NC Project Summary Investment Highlights Location Raleigh, NC Sourced directly through homebuilder network / Product Type Discounted Forward BTR Purchase partnership Units 170 Potential to replicate
Slide 18: Closed Deal Highlight: BTR Acquisition Below Prior Cycle Pricing
18 Closed Deal Highlight BTR Acquisition ~25% - 30% Below Prior Cycle Pricing / Multiples Project Summary Investment Highlights Location Houston, TX Projected year one cap rate of 5.75% vs. prior cycle cap rates of 3.4 – 3.8% range Product Type BTR Acquisition • Adjacent property sold for $200,000
Slide 19: Well-Positioned Balance Sheet and Access to Capital
19 WELL-POSITIONED BALANCE SHEET AND A C C E S S TO C A P I TA L
Slide 20: Strong Balance Sheet: 30% Leverage with Limited Near-Term Maturities
20 Strong Balance Sheet 30% Leverage with Limited Near-Term Maturities Equity, Fixed Rate and Hedged Debt Represent 90% of the Overall Capital Structure • 30% Leverage (18% Net of Cash)1 • 5.03% Weighted-Average Interest Rate2 Total Debt as a % of Gross Assets Minimal Near-Term Debt Maturities with
Slide 21: Non-Traded Convertible Preferred Security Issuance Provides Access to Accretive Capital
21 Attractive Non-Traded Convertible Preferred Security Issuance Provides BHM with Unique Access to Accretive Capital for Investment Sample Institutional Convertible Preferred 1-Month Term SOFR + 2% Rate Range Exceeding 10% (6.5% Floor & 8.5% Cap) Non-Call Period 2 Years 5+ Years Conversion Election
Slide 22: Successful Track Record of Raising & Investing Non-Traded Convertible Preferred Equity
22 Successful Track Record of Raising & Investing “Non-Traded” Convertible Preferred Equity with Bluerock Residential Growth REIT NYSE-AMERICAN (BRG) Listed: Apr 2014 | Sold: Oct 2022 BRG Capital Stack (IPO vs. BX Sale) in millions $4,000 Non-Traded Preferred Equity $3,500 • Accretive cost of capita
Slide 23: Environmental, Social and Governance
23 E N V I R O N M E N TA L , SOCIAL AND GOVERNANCE
Slide 24: Bluerock's Commitment to ESG
24 Bluerock’s Commitment to ESG Reduce Energy Consumption, Improve Waste & Water Management • Building New Developments built to reduce energy and water use and waste to landfills Environmental • Installing Green Upgrades on Renovations Responsibility • Recycling Programs, Limiting Use of Plastics a
Slide 25: Sponsored By / Listed On
BHM BLUEROCK Homes Trust” Sponsored By [Es] BLUEROCK ussden th mS