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Bluerock Series B Redeemable Preferred Stock Declares NAV

The board of Bluerock Residential Growth REIT (NYSE: BRG), a publicly traded real estate investment trust, has approved an estimated value per share of the company’s Series B Redeemable Preferred Stock of $1,000 plus accreted dividends of approximately $96 million, as of June 30, 2017.

The company engaged Duff & Phelps LLC to assist with the valuation, which was based on the fair value of the company’s portfolio of real estate properties, net of associated mortgage liabilities, as of June 30, 2017.

Shares of Bluerock Residential Growth REIT Redeemable Preferred B Stock & Warrants, which are distributed to retail investors via independent broker-dealers and registered investment advisors, are priced at $1,000 each and include one warrant to purchase 20 shares of Class A common stock at a 20 percent premium of the current market price. On November 20, 2017, the closing price of BRG Class A common stock was $11.45 per share.

Series B Redeemable Preferred Stock have an annual preferred dividend rate of 6 percent. The company recently declared cash dividends for the fourth quarter of 2017 at a quarterly rate of $15.00 per share. As of November 15, 2017, 160,528 shares of Series B Redeemable Preferred Stock have been issued for gross offering proceeds of $160.5 million.

Bluerock Residential Growth REIT focuses on acquiring a diversified portfolio of Class A institutional-quality multifamily properties. The REIT’s portfolio consists of 34 property investments, including 24 developed properties, nine properties under construction, and one property pending development. The company generally invested in the properties through joint ventures or other indirect ownership interests.

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