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NEW YORK - Bluerock Homes Trust, Inc. (NYSE American: BHM), a real estate investment trust (REIT) focused on single-family properties, has announced a new share repurchase program. The company’s board of directors has approved the buyback of up to $5 million worth of its Class A common stock. With a current market capitalization of approximately $148 million and trading significantly below its InvestingPro Fair Value, this move could help support the stock price, which has declined over 22% in the past six months.
The repurchase plan is set to last for one year, although the company retains the discretion to halt the program at any time. The timing and volume of the buybacks will be influenced by market conditions, business considerations, and regulatory requirements. Bluerock Homes Trust plans to execute these repurchases on the open market, adhering to the method, timing, price, and volume stipulations of Rule 10b-18 of the Securities Exchange Act of 1934. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 6.71, suggesting ample resources to execute the buyback program while meeting its operational needs.
This strategic move comes as part of the company’s broader efforts to manage its capital and enhance shareholder value. Bluerock Homes Trust specializes in owning and operating high-quality single-family rental homes, particularly in the knowledge-economy and high quality of life regions of the Sunbelt and high growth areas of the Western United States. The company aims to provide attractive risk-adjusted investment returns by developing a portfolio that includes both pre-existing rental homes and build-to-rent communities. Recent financial data shows revenue growth of 12.5% in the last twelve months, with a gross profit margin of nearly 54%, though the company has yet to achieve profitability with earnings per share at -$0.98.
While the announcement reflects the company’s current plans, Bluerock Homes Trust has made it clear that these forward-looking statements are not guaranteed to materialize and are subject to change. The company has cited various risk factors in its most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on March 22, 2023, and encourages investors not to place undue reliance on these statements. For a comprehensive analysis of BHM’s financial health and additional insights, investors can access more than 30 key metrics and exclusive ProTips through InvestingPro.
This repurchase initiative is part of the company’s capital allocation strategy and is based on a press release statement from Bluerock Homes Trust.
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