Discounted Cash Flow (DCF) Analysis Levered

Bluerock Residential Growth REIT, I... (BRG)

$26.6

-0.32 (-%)

All numbers are in Millions, Currency in USD

Stock DCF: 76.69 | 26.6 | undervalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	123.18	184.72	209.97	219.85	220.65	258.54	302.94	354.97	415.93	487.36
Revenue (%)
Operating Cash Flow	54.25	64.46	63.33	74.48	82.05	93.16	109.15	127.90	149.86	175.60
Operating Cash Flow (%)
Capital Expenditure	-46.97	-21.24	-21.45	-17.12	-27.90	-41.51	-48.64	-56.99	-66.78	-78.25
Capital Expenditure (%)
Free Cash Flow	7.28	43.22	41.89	57.36	54.15	51.65	60.52	70.91	83.09	97.35

Weighted Average Cost Of Capital

Share price	$ 26.6
Beta	0.812
Diluted Shares Outstanding	26.25
Cost of Debt
Tax Rate	12.78
After-tax Cost of Debt	3.37%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.363
Total Debt	1,364.99
Total Equity	698.25
Total Capital	2,063.24
Debt Weighting	66.16
Equity Weighting	33.84
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	123.18	184.72	209.97	219.85	220.65	258.54	302.94	354.97	415.93	487.36
Operating Cash Flow	54.25	64.46	63.33	74.48	82.05	93.16	109.15	127.90	149.86	175.60
Capital Expenditure	-46.97	-21.24	-21.45	-17.12	-27.90	-41.51	-48.64	-56.99	-66.78	-78.25
Free Cash Flow	7.28	43.22	41.89	57.36	54.15	51.65	60.52	70.91	83.09	97.35
WACC
PV LFCF						49.32	55.18	61.75	69.09	77.30
SUM PV LFCF										312.64

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.72
Free cash flow (t + 1)	99.30
Terminal Value	3,650.76
Present Value of Terminal Value	2,898.91

Intrinsic Value

Enterprise Value	3,211.55
Net Debt	1,198.50
Equity Value	2,013.05
Shares Outstanding	26.25
Equity Value Per Share	76.69