Following investor feedback, Bluerock Residential Growth REIT Inc.'s board forecasts the company's 2018 annual dividend will potentially range between about 65 cents and 75 cents per class A common share.
The projected dividend range, which is still subject to board review, reflects an annual dividend rate of 6.1% to 7.0% per share based on the $10.68-per-share closing price of Bluerock's class A common stock Aug. 9. The company said its board's review of the dividend policy is ongoing and will not be finalized until the fourth quarter.
Also, Bluerock and its external manager BRG Manager LLC agreed to amend the contribution agreement governing the company's internalization plan, such that the cooling off period related to the plan will run from Aug. 10 to Sept. 9, and the 20-trading day period during which the calculation of the company's volume weighted-average price per class A common share will apply to will start at market open Sept. 11 and end at market close Oct. 6.
The cooling off period refers to the period before the company's volume weighted-average price per class A common share, as reported on the NYSE MKT, which will be calculated to determine the equity consideration payable in the internalization deal.
Bluerock said the amended contribution deal, which was approved by its board and the board's special committee of directors, follows investor concern surrounding the effect of the recent price decline on the aforementioned equity consideration and is meant to ensure that such equity consideration is fairly priced by the market.