Bluerock Residential Growth REIT Announces Redemption of 8.250% Series A Cumulative Redeemable Preferred Stock

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Bluerock Residential Growth REIT plans to redeem all outstanding shares of its 8.250% Series A Cumulative Redeemable Preferred Stock on February 26, 2021. Shareholders will receive a total of $25.320833 per share, including accrued dividends. Dividends will cease on the redemption date, and holders will only retain rights to receive the cash payment. All shares will be redeemed in accordance with established processes, managed by Computershare Trust Company. Bluerock focuses on developing live/work/play apartment communities in growth markets.

Positive

• Redeeming Series A Preferred Stock at a total of $25.320833 per share, which may be viewed positively by shareholders.
• The company is included in the Russell 2000 and Russell 3000 Indexes, enhancing its visibility.

Negative

• The potential adverse effects of COVID-19 on financial performance and tenant rent payments as indicated in forward-looking statements.

NEW YORK, Jan. 27, 2021 /PRNewswire/ -- Bluerock Residential Growth REIT, Inc. (the "Company") announced today that it intends to redeem all outstanding shares of its 8.250% Series A Cumulative Redeemable Preferred Stock (the "Series A Preferred Stock") on February 26, 2021 (the "Redemption Date"). The shares of Series A Preferred Stock will be redeemed at a redemption price of $25.00 per share, plus accrued and unpaid dividends up to, and including, the Redemption Date in an amount equal to $0.320833 per share, for total proceeds of $25.320833 per share (the "Redemption Price"). Payment of the Redemption Price will be made in cash.

Dividends on the shares of Series A Preferred Stock that are to be redeemed will cease to accrue on the Redemption Date. Upon redemption, the redeemed shares of Series A Preferred Stock will no longer be outstanding, and all rights of the holders of such shares will terminate, except the right of the holders to receive the cash payable upon such redemption, without interest.

All shares of Series A Preferred Stock are held in book-entry form. As specified in the notice of redemption, shares of Series A Preferred Stock held in book-entry form through the Depository Trust Company ("DTC") will be redeemed according to DTC's procedures and shares of Series A Preferred Stock held through the records of Computershare Trust Company, N.A. (the "Redemption Agent") will be automatically redeemed by the Redemption Agent.

The address for the Redemption Agent is as follows:

Computershare Trust Company, N.A.
150 Royall Street
Canton, MA 02021
Attn: Corporate Actions
Telephone: (800) 546-5141

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 to operations. The Company is included in the Russell 2000 and Russell 3000 Indexes. The Company has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.

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. Although the Company believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, the Company's actual results and performance could differ materially from those set forth in these forward-looking statements due to numerous factors. Currently, one of the most significant factors is the potential adverse effect of the COVID-19 pandemic on the financial condition, results of operations, cash flows and performance of the Company and its tenants, partners and employees, as well as the real estate market and the global economy and financial markets. The extent to which COVID-19 impacts the Company and its tenants, partners and employees will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact (including governmental actions that may vary by jurisdiction, such as mandated business closing; stay-at-home orders; limits on group activity; and actions to protect residential tenants from eviction), and the direct and indirect economic effects of the pandemic and containment measures, including national and local employment rates and the corresponding impact on the Company's tenants' ability to pay their rent on time or at all, among others.  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 24, 2020, 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.

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SOURCE Bluerock Residential Growth REIT, Inc.

FAQ

What is Bluerock Residential Growth REIT's redemption plan for Series A Preferred Stock?

Bluerock Residential Growth REIT plans to redeem all shares of its 8.250% Series A Cumulative Redeemable Preferred Stock on February 26, 2021.

What will be the redemption price for Bluerock's Series A Preferred Stock?

The redemption price will be $25.320833 per share, including accrued dividends.

When will dividends cease for the Series A Preferred Stock of BRG?

Dividends will cease to accrue on the redemption date, February 26, 2021.

How will the redemption of Series A Preferred Stock affect BRG shareholders?

Upon redemption, shareholders will receive cash payment and will no longer hold rights to the shares.

What financial risks does BRG face related to COVID-19?

BRG noted potential adverse effects from COVID-19, impacting its financial condition and tenants' ability to pay rent.