8-K
BRT Apartments Corp. (BRT)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 5, 2020
BRT APARTMENTS CORP.
(Exact name of Registrant as specified in charter)
| Maryland | 001-07172 | 13-2755856 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission file No.) | (IRS Employer I.D. No.) |
60 Cutter Mill Road, Suite 303, Great Neck, New York 11021
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code 516-466-3100
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock | BRT | NYSE |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 and Item 7.01. Results of Operations and Financial Condition; Regulation FD Disclosure.
On November 5, 2020, we issued a press release announcing our results of operations for the three months ended September 30, 2020. The press release refers to certain supplemental financial information available on our website. The press release and the supplemental financial information are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K. The information in this Item 2.02 and 7.01, including the information included in Exhibits 99.1 and 99.2, shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended, which we refer to as the Exchange Act, and shall not be incorporated by reference into any registration statement or other document filed under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits relating to Items 2.02 and 7.01 of this Current Report on Form 8-K are intended to be furnished to, not filed with, the SEC.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release dated November 5, 2020 |
| 99.2 | Supplemental Financial Information dated November 5, 2020 |
| 101 | Cover Page Interactive Data File - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BRT APARTMENTS CORP. | |
|---|---|
| November 5, 2020 | /s/ George Zweier |
| George Zweier, Vice President | |
| and Chief Financial Officer |
Document
BRT APARTMENTS CORP. REPORTS THIRD QUARTER RESULTS FOR 2020
Great Neck, New York – November 5, 2020 - BRT APARTMENTS CORP. (NYSE:BRT), a multi-family real estate investment trust with properties located primarily in the Southeast United States and Texas today announced operating results for the three months ended September 30, 2020.
Jeffrey A. Gould, President and Chief Executive Officer stated: “Our performance in the third quarter underscores the ongoing resilience of our business model and our properties as we collected 98.0% of our billed rent. We remain cautious with regard to capital deployment and anticipate resuming acquisition activity in 2021 and full-scale value add property upgrades when we believe that the disruptive effects of the pandemic have dissipated. Our priority is to ensure the financial flexibility of our balance sheet as we continue to focus on long-term value creation.”
Financial Results:
Net loss attributable to common stockholders was $7.48 million, or $0.44 per diluted share, for the three months ended September 30, 2020, compared to net income of $3.27 million, or $0.20 per diluted share, for the three months ended September 30, 2019. Net loss for the 2020 quarter includes a $3.64 million, or $0.21 per diluted share, non-cash impairment charge. The 2019 quarter includes a $9.94 million, or $0.62 per diluted share, gain on sale of real estate and a $1.39 million, or $0.09 per diluted share, loss on extinguishment of debt.
Funds from Operations, or FFO, was $4.56 million, or $0.27 per diluted share, for the three months ended September 30, 2020, compared to $1.96 million, or $0.12 per diluted share, for the three months ended September 30, 2019. Contributing to the improvement in FFO were the inclusion, in the 2019 quarter, of mortgage prepayment charges, a reduction in interest expense in the current quarter, and the inclusion, in the 2020 quarter, of an insurance recovery.1
Adjusted Funds from Operations, or AFFO, for the three months ended September 30, 2020 was $4.89 million, or $0.28 per diluted share, for the three months ended September 30, 2020, compared to $4.18 million, or $0.26 per diluted share, in the three months ended September 30, 2019. Contributing to the improvement in AFFO was the reduction in interest expense.
Diluted per share net income, FFO and AFFO were impacted during the quarter ended September 30, 2020 by the approximate increase of 1.1 million weighted average shares of common stock outstanding from the third quarter of 2019 through the end of the current quarter, primarily due to stock issuances pursuant to the Company’s at-the-market equity offering program.
Operating Results:
As of November 5, 2020, BRT wholly-owns eight multi-family properties located in six states with 1,880 units and has ownership interests, through unconsolidated joint ventures, in 31 multi-family properties located in nine states with 9,162 units, including 741 units at two properties in lease-up. BRT’s equity interests in these unconsolidated subsidiaries, over which BRT actively oversees the management, generally ranges from 50% to 90%.
During the quarter ended September 30, 2020, the average rental rate per occupied unit at consolidated properties was approximately $1,085 per month compared to approximately $1,044 per month during the corresponding 2019 quarter. Average total occupancy at these properties was approximately 95.8% compared to approximately 94.7% during the corresponding 2019 quarter.
1 A description and reconciliation of non-GAAP financial measures (i.e., FFO and AFFO) to GAAP financial measures is presented later in this release.
During the quarter ended September 30, 2020, the average rental rate per occupied unit at unconsolidated properties, excluding those in lease up, was approximately $1,086 per month compared to approximately $1,055 per month during the corresponding 2019 quarter. Average total occupancy at these properties was approximately 94.1% compared to approximately 94.6% during the corresponding 2019 quarter.
Rental revenue at consolidated properties for the current three months increased 12.1% to $7.02 million from $6.26 million for the three months ended September 30, 2019 due to the acquisition of a partner’s minority interest and, to a lesser extent, an increase in average rental rate at same store properties. Rental revenue at unconsolidated joint venture multi-family properties for the current three months increased 3.4% to $32.34 million from $31.27 million for the three months ended September 30, 2019.
Total expenses on a consolidated basis for the three months ended September 30, 2020 were $13.17 million compared to $8.41 million for the three months ended September 30, 2019. The current quarter includes a $3.64 million impairment charge related to a legacy asset – a vacant land parcel in Daytona, Florida. Total expenses at unconsolidated joint venture multi-family properties for the current three months increased 2.5% to $35.17 million from $34.31 million for the three months ended September 30, 2019.
Equity in loss of unconsolidated joint ventures was $1.53 million during the current quarter compared to $2.39 million in the corresponding quarter of the prior year. Contributing to the improvement in the current quarter is the gain on insurance recovery and the inclusion, in the corresponding period of the prior year, of a loss on extinguishment of debt.
Balance Sheet:
At September 30, 2020, BRT had $15.65 million of cash and cash equivalents, total assets of $374.25 million, total debt of $168.23 million, and BRT total stockholders’ equity of $184.43 million.
At November 2, 2020, BRT’s available liquidity was approximately $35.12 million, including $15.80 million of cash and cash equivalents, $9.32 million of restricted cash for property improvements and up to $10.0 million available under its credit facility. In addition, the unconsolidated joint ventures have approximately $16.60 million of cash and cash equivalents which is used for day-to-day working capital purposes.
BRT’s mortgage debt of $956.97 million (including $825.82 million mortgage debt of its unconsolidated subsidiaries) has a weighted average interest rate of 3.98% and a weighted average remaining term to maturity of 7.0 years. Approximately 91.0% of the mortgage debt bears interest at a fixed rate. The balance of such debt represents variable-rate construction financing; BRT anticipates refinancing, with fixed rate mortgage debt, the construction financing when lease-up at the related property is complete.
Supplemental Financial Information:
In an effort to enhance its financial disclosures to investors, BRT has posted a supplemental financial information report which can be accessed on the Company’s website at www.brtapartments.com under the caption “Investor Relations - Financial Statements and SEC Filings.”
Non-GAAP Financial Measures:
BRT discloses FFO and AFFO because it believes that such metrics are widely recognized and appropriate measure of the performance of an equity REIT.
BRT computes FFO in accordance with the "White Paper on Funds from Operations" issued by the National Association of Real Estate Investment Trusts ("NAREIT") and NAREIT's related guidance. FFO is defined in the White Paper as net income (calculated in accordance with generally accepted accounting principles), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect funds from operations on the same basis.
BRT computes AFFO by adjusting FFO for loss on extinguishment of debt; straight-line rent accruals; restricted stock and restricted stock unit expense and deferred mortgage costs (including its share of its unconsolidated joint ventures); and gain on insurance recovery. Since the NAREIT White Paper only provides guidelines for computing FFO, the computation of AFFO may vary from one REIT to another.
BRT believes that FFO and AFFO are useful and standard supplemental measures of the operating performance for equity REITs and are used frequently by securities analysts, investors and other interested parties in evaluating equity REITs, many of which present such metrics when reporting their operating results. FFO and AFFO are intended to exclude GAAP historical cost depreciation and amortization of real estate assets, which assures that the value of real estate assets diminish predictability over time. In fact, real estate values have historically risen and fallen with market conditions. As a result, BRT believes that FFO and AFFO provide a performance measure that when compared year-over-year, should reflect the impact to operations from trends in occupancy rates, rental rates, operating costs, interest costs and other matters without the inclusion of depreciation and amortization, providing a perspective that may not be necessarily apparent from net income. BRT also considers FFO and AFFO to be useful in evaluating potential property acquisitions.
FFO and AFFO do not represent net income or cash flows from operations as defined by GAAP. FFO and AFFO should not be considered to be an alternative to net income as a reliable measure of our operating performance; nor should FFO and AFFO be considered an alternative to cash flows from operating, investing or financing activities (as defined by GAAP) as measures of liquidity.
Forward Looking Information:
Certain information contained herein is forward looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the apparent improvement in the economic environment and BRT’s ability to originate additional loans. BRT intends such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words “may,” “will,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “apparent,” “experiencing” or similar expressions or variations thereof. Forward looking statements, including statements with respect to BRT’s multi-family property acquisition and ownership activities, involve known and unknown risks, uncertainties and other factors, which, in some cases, are beyond BRT’s control and could materially affect actual results, performance or achievements. Currently, one of the most significant uncertainties the Company is facing is the potential adverse effect of the current pandemic of the novel coronavirus, or COVID-19, on residents at the Company’s properties. The pandemic, among other things, may adversely affect the ability of the residents to pay rent (due to furloughs, layoffs and/or the expiration of, or reduction in, unemployment benefits) and as a result, the Company’s ability to pay dividends and/or the debt service on its mortgages. The possibility that in the near term, the Company may be adversely impacted by the pandemic, is heightened by the recent resurgence of the pandemic in the southeast United States and Texas, where many of the Company’s properties are located. The extent to which COVID-19 impacts the Company 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 and the direct and indirect economic effects of the pandemic and containment measures, among others. Investors are cautioned not to rely on any forward-looking statements and to carefully review the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K filed on May 15, 2020 and in the Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed thereafter.
Additional Information:
BRT is a real estate investment trust that owns, operates and develops multi-family properties. Interested parties are urged to review the Form 10-Q to be filed with the Securities and Exchange Commission for the quarter ended September 30, 2020 and the supplemental disclosures regarding the quarter on the investor relations section of the Company’s website at: http://brtapartments.com/investor_relations for further details. The Form 10-Q can also be linked through the “Investor Relations” section of BRT’s website. For additional information on BRT’s operations, activities and properties, please visit its website at www.brtapartments.com.
Contact: Investor Relations - (516) 466-3100
BRT APARTMENTS CORP.
60 Cutter Mill Road
Suite 303
Great Neck, New York 11021
Telephone (516) 466-3100
Telecopier (516) 466-3132
www.BRTapartments.com
BRT APARTMENTS CORP. AND SUBSIDIARIES
CONDENSED BALANCE SHEETS
(Dollars in thousands)
| September 30, 2020 | December 31, 2019 | |||
|---|---|---|---|---|
| ASSETS | ||||
| Real estate properties, net of accumulated depreciation | $ | 161,594 | $ | 169,689 |
| Investments in unconsolidated joint ventures | 175,484 | 177,071 | ||
| Real estate loan | — | 4,150 | ||
| Cash and cash equivalents | 15,650 | 22,699 | ||
| Restricted cash | 9,129 | 9,719 | ||
| Other assets | 12,390 | 7,282 | ||
| Total assets | $ | 374,247 | $ | 390,610 |
| LIABILITIES AND EQUITY | ||||
| Mortgages payable, net of deferred costs | $ | 131,148 | $ | 133,215 |
| Junior subordinated notes, net of deferred costs | 37,078 | 37,063 | ||
| Accounts payable and accrued liabilities | 21,678 | 20,772 | ||
| Total Liabilities | 189,904 | 191,050 | ||
| Total BRT Apartments Corp. stockholders’ equity | 184,431 | 199,653 | ||
| Non-controlling interests | (88) | (93) | ||
| Total Equity | 184,343 | 199,560 | ||
| Total Liabilities and Equity | $ | 374,247 | $ | 390,610 |
BRT APARTMENTS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share data)
| Three Months Ended<br>September 30, | ||||
|---|---|---|---|---|
| 2020 | 2019 | |||
| Revenues: | ||||
| Rental and other revenues from real estate properties | $ | 7,020 | $ | 6,261 |
| Other income | 293 | 161 | ||
| Total revenues | 7,313 | 6,422 | ||
| Expenses: | ||||
| Real estate operating expenses | 3,289 | 2,741 | ||
| Interest expense | 1,731 | 1,870 | ||
| General and administrative | 2,730 | 2,430 | ||
| Impairment charge | 3,642 | — | ||
| Depreciation | 1,777 | 1,373 | ||
| Total expenses | 13,169 | 8,414 | ||
| Total revenue less total expenses | (5,856) | (1,992) | ||
| Equity in loss of unconsolidated joint ventures | (1,529) | (2,390) | ||
| Gain on sale of real estate | — | 9,938 | ||
| Loss on extinguishment of debt | — | (1,387) | ||
| (Loss) income from continuing operations | (7,385) | 4,169 | ||
| Income tax provision | 65 | 98 | ||
| Net (loss) income from continuing operations, net of taxes | (7,450) | 4,071 | ||
| Net income attributable to non-controlling interests | (34) | (799) | ||
| Net (loss) income attributable to common stockholders | $ | (7,484) | $ | 3,272 |
| Per share amounts attributable to common stockholders: | ||||
| Basic | $ | (0.44) | $ | 0.21 |
| Diluted | $ | (0.44) | $ | 0.20 |
| Funds from operations - Note 1 | $ | 4,555 | $ | 1,962 |
| Funds from operations per common share - diluted - Note 2 | $ | 0.27 | $ | 0.12 |
| Adjusted funds from operations - Note 1 | $ | 4,894 | $ | 4,178 |
| Adjusted funds from operations per common share - diluted -Note 2 | $ | 0.28 | $ | 0.26 |
| Weighted average number of shares of common stock outstanding: | ||||
| Basic | 17,176,401 | 15,913,975 | ||
| Diluted | 17,176,401 | 16,113,975 |
BRT APARTMENTS CORP. AND SUBSIDIARIES
FUNDS FROM OPERATIONS
(Dollars in thousands, except per share data)
| Three Months Ended September 30, | ||||
|---|---|---|---|---|
| 2020 | 2019 | |||
| Note 1: | ||||
| Funds from operations is summarized in the following table: | ||||
| GAAP Net loss attributable to common stockholders | $ | (7,484) | $ | 3,272 |
| Add: depreciation of properties | 1,777 | 1,373 | ||
| Add: our share of depreciation in unconsolidated joint ventures | 6,624 | 6,366 | ||
| Add: Impairment charge | 3,642 | — | ||
| Deduct: gain on sale of real estate | — | (9,938) | ||
| Adjustments for non-controlling interests | (4) | 889 | ||
| NAREIT Funds from operations attributable to common stockholders | 4,555 | 1,962 | ||
| Adjustments for: straight-line rent accruals | (10) | (10) | ||
| Add: loss on extinguishment of debt | — | 1,387 | ||
| Add: our share of loss on extinguishment of debt from unconsolidated joint ventures | — | 273 | ||
| Add: amortization of restricted stock and restricted stock units | 461 | 372 | ||
| Add: amortization of deferred mortgage costs | 80 | 71 | ||
| Add: our share of deferred mortgage costs from unconsolidated joint venture properties | 156 | 246 | ||
| Less: our share of gain on insurance proceeds from unconsolidated joint venture | (350) | — | ||
| Adjustments for non-controlling interests | 2 | $ | (123) | |
| Adjusted funds from operations attributable to common stockholders | $ | 4,894 | $ | 4,178 |
BRT APARTMENTS CORP. AND SUBSIDIARIES
FUNDS FROM OPERATIONS
(Dollars in thousands, except per share data)
| Three Months Ended September 30, | ||||
|---|---|---|---|---|
| 2020 | 2019 | |||
| Note 2: | ||||
| GAAP Net loss attributable to common stockholders | $ | (0.44) | $ | 0.20 |
| Add: depreciation of properties | 0.11 | 0.09 | ||
| Add: our share of depreciation in unconsolidated joint ventures | 0.39 | 0.39 | ||
| Add: Impairment charge | 0.21 | — | ||
| Deduct: gain on sale of real estate | — | (0.62) | ||
| Adjustment for non-controlling interests | — | 0.06 | ||
| NAREIT Funds from operations per diluted common share | 0.27 | 0.12 | ||
| Adjustments for: straight line rent accruals | — | — | ||
| Add: loss on extinguishment of debt | — | 0.09 | ||
| Add: our share of loss on extinguishment of debt from unconsolidated joint ventures | — | 0.02 | ||
| Add: amortization of restricted stock and restricted stock units | 0.02 | 0.02 | ||
| Add: amortization of deferred mortgage costs | — | — | ||
| Add: our share of deferred mortgage costs from unconsolidated joint venture properties | 0.01 | 0.02 | ||
| Less: our share of gain on insurance proceeds from unconsolidated joint venture | (0.02) | — | ||
| Adjustments for non-controlling interests | — | (0.01) | ||
| Adjusted funds from operations per diluted common share | $ | 0.28 | $ | 0.26 |
Document
| SUPPLEMENTAL FINANCIAL<br>INFORMATION FOR Q3 2020 |
|---|
November 5, 2020
60 Cutter Mill Rd., Great Neck, NY 11021
FORWARD LOOKING STATEMENTS
The information set forth herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provision for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words "may", "will", "believe", "expect", "intend", "anticipate”, “estimate", "project", or similar expressions or variations thereof. Forward-looking statements involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could materially affect actual results, performance or achievements. Investors are cautioned not to place undue reliance on any forward-looking statements and are urged to read the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K filed on May 15, 2020 and in reports filed with the SEC thereafter, including our Quarterly Report on Form 10-Q for the period ended September 30, 2020, that we anticipate will be filed contemporaneously with the furnishing of this document.
The Company undertakes no obligation to update or revise the information herein, whether as a result of new information, future events or circumstances, or otherwise.
Units under rehabilitation for which we have received or accrued rental income from business interruption insurance, while not physically occupied, are treated as leased (i.e., occupied) at rental rates in effect at the time of the casualty.
We use pro rata (as defined under "Non-GAAP Financial Measures and Definitions") to help the reader gain a better understanding of our unconsolidated joint ventures. However, the use of pro rata information has certain limitations and is not representative of our operations and accounts as presented in accordance with GAAP. Accordingly, pro rata information should be used with caution and in conjunction with the GAAP data presented herein and in our reports filed with the SEC.
| Table of Contents | Page Number |
|---|---|
| Financial Highlights | 1 |
| Operating Results | 2 |
| Operating Results of Unconsolidated Properties | 3 |
| Funds From Operations | 4 |
| Consolidated Balance Sheets | 5 |
| Balance Sheets of Unconsolidated Joint Venture Entities | 6 |
| Portfolio Data by State | 7-8 |
| Same Store Comparison - Consolidated | 9-10 |
| Same Store Comparison - Unconsolidated | 11-12 |
| Portfolio Data Combined | 13 |
| Multi-Family Acquisitions and Dispositions | 14 |
| Value-Add Information and Capital Expenditures | 15 |
| Debt Analysis | 16 |
| Non-GAAP Financial Measures, Definitions, and Reconciliations | 17-20 |
| Portfolio Table | 21 |
BRT Apartments Corp. (NYSE: BRT)
Financial Highlights
_________________________________________________________________________________________________________
| As at September 30, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | |||||||||
| Market capitalization (thousands) | $ | 202,333 | $ | 232,580 | ||||||
| Shares outstanding (thousands) | 17,176 | 15,952 | ||||||||
| Closing share price | $ | 11.78 | $ | 14.58 | ||||||
| Quarterly dividend declared per share | $ | 0.22 | $ | 0.22 | ||||||
| Multi-family properties owned | 39 | 39 | ||||||||
| Units | 11,042 | (1) | 11,178 | (1) | ||||||
| Average occupancy (2) | 94.5 | % | 94.7 | % | ||||||
| Average monthly rental revenue per occupied unit (2) | $ | 1,086 | $ | 1,053 | ||||||
| Quarter ended September 30, | Nine months ended September 30, | |||||||||
| Per share data | 2020<br>(Unaudited) | 2019<br>(Unaudited) | 2020<br>(Unaudited) | 2019<br>(Unaudited) | ||||||
| Earnings per share basic | $ | (0.44) | $ | 0.21 | $ | (0.97) | $ | (0.33) | ||
| Earnings per share diluted | $ | (0.44) | $ | 0.20 | $ | (0.97) | $ | (0.33) | ||
| FFO per share of common stock (diluted) (3) | 0.27 | 0.12 | 0.71 | 0.54 | ||||||
| AFFO per share of common stock (diluted) (3) | $ | 0.28 | $ | 0.26 | $ | 0.80 | $ | 0.74 |
(1) For 2020, includes 1,880 units owned by consolidated subsidiaries and 9,162 units owned by unconsolidated subsidiaries. For 2019, includes 2,072 units owned by consolidated subsidiaries and 9,151 units owned by unconsolidated subsidiaries. Unconsolidated for 2020 and 2019 includes 741 units in lease-up.
(2) For the period presented, average reflects stabilized properties and includes consolidated and unconsolidated assets.
See definition of stabilized properties under "Non-GAAP Financial Measures and Definitions."
(3) See the reconciliation of Funds From Operations, or FFO, and Adjusted Funds From Operations, or AFFO, to net income,
as calculated in accordance with GAAP, and the definitions of such terms under "Non-GAAP Financial Measures and Definitions."
BRT Apartments Corp. (NYSE: BRT)
Operating Results
(dollars in thousands except per share data)
_____________________________________________________________________________________________________________________
| Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||
| Revenues: | ||||||||
| Rental revenue | $ | 7,020 | $ | 6,261 | $ | 20,422 | $ | 20,244 |
| Other income | 293 | 161 | 631 | 595 | ||||
| Total revenues | 7,313 | 6,422 | 21,053 | 20,839 | ||||
| Expenses: | ||||||||
| Real estate operating expenses | 3,289 | 2,741 | 9,351 | 9,242 | ||||
| Interest expense | 1,731 | 1,870 | 5,400 | 5,865 | ||||
| General and administrative (1) | 2,730 | 2,430 | 9,054 | 7,455 | ||||
| Impairment charge | 3,642 | — | 3,642 | — | ||||
| Depreciation | 1,777 | 1,373 | 5,147 | 4,348 | ||||
| Total expenses | 13,169 | 8,414 | 32,594 | 26,910 | ||||
| Total revenues less total expenses | (5,856) | (1,992) | (11,541) | (6,071) | ||||
| Equity in loss of unconsolidated joint ventures | (1,529) | (2,390) | (4,731) | (6,676) | ||||
| Gain on sale of real estate | — | 9,938 | — | 9,938 | ||||
| Loss on extinguishment of debt | — | (1,387) | — | (1,387) | ||||
| (Loss) income from continuing operations | (7,385) | 4,169 | (16,272) | (4,196) | ||||
| Income tax provision | 65 | 98 | 192 | 219 | ||||
| Net (loss) income from continuing operations, net of taxes | (7,450) | 4,071 | (16,464) | (4,415) | ||||
| Net income attributable to non-controlling interests | (34) | (799) | (97) | (877) | ||||
| Net (loss) income attributable to common stockholders | $ | (7,484) | $ | 3,272 | $ | (16,561) | $ | (5,292) |
| Weighted average number of shares of common stock outstanding: | ||||||||
| Basic | 17,176,401 | 15,913,975 | 17,095,315 | 15,900,362 | ||||
| Diluted | 17,176,401 | 16,113,975 | 17,095,315 | 15,900,362 | ||||
| Per share amounts attributable to common stockholders: | ||||||||
| Basic | $ | (0.44) | $ | 0.21 | $ | (0.97) | $ | (0.33) |
| Diluted | $ | (0.44) | $ | 0.20 | $ | (0.97) | $ | (0.33) |
(1) Includes $10 and $698 in fees relating to the restatement for the three and nine months ended September 30, 2020, respectively.
BRT Apartments Corp. (NYSE: BRT)
Operating Results of Unconsolidated Properties
(dollars in thousands except per share data)
_____________________________________________________________________________________________________________________
| Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||
| Revenues: | ||||||||
| Rental and other revenue | $ | 32,341 | $ | 31,273 | $ | 94,726 | $ | 87,076 |
| Total revenues | 32,341 | 31,273 | 94,726 | 87,076 | ||||
| Expenses: | ||||||||
| Real estate operating expenses | 16,092 | 15,212 | 45,298 | 42,612 | ||||
| Interest expense | 8,663 | 9,202 | 26,186 | 26,027 | ||||
| Depreciation | 10,411 | 9,901 | 31,184 | 29,121 | ||||
| Total expenses | 35,166 | 34,315 | 102,668 | 97,760 | ||||
| Total revenues less total expenses | (2,825) | (3,042) | (7,942) | (10,684) | ||||
| Loss on extinguishment of debt | — | (379) | — | (379) | ||||
| Gain on insurance recoveries | 427 | — | 765 | 517 | ||||
| Net income from joint ventures | $ | (2,398) | $ | (3,421) | $ | (7,177) | $ | (10,546) |
| BRT equity in loss from joint ventures | $ | (1,529) | $ | (2,390) | $ | (4,731) | $ | (6,676) |
BRT Apartments Corp. (NYSE: BRT)
Funds from Operations
(dollars in thousands except per share data)
_____________________________________________________________________________________________________________________
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||
| GAAP Net loss attributable to common stockholders | $ | (7,484) | $ | 3,272 | $ | (16,561) | $ | (5,292) |
| Add: depreciation of properties | 1,777 | 1,373 | 5,147 | 4,348 | ||||
| Add: our share of depreciation in unconsolidated joint ventures | 6,624 | 6,366 | 19,823 | 18,526 | ||||
| Add: Impairment charge | 3,642 | — | 3,642 | — | ||||
| Deduct: gain on sale of real estate | — | (9,938) | — | (9,938) | ||||
| Adjustments for non-controlling interests | (4) | 889 | (12) | 859 | ||||
| NAREIT Funds from operations attributable to common stockholders | 4,555 | 1,962 | 12,039 | 8,503 | ||||
| Adjustments for: straight-line rent accruals | (10) | (10) | (30) | (30) | ||||
| Add: loss on extinguishment of debt | — | 1,387 | — | 1,387 | ||||
| Add: our share of loss on extinguishment of debt from unconsolidated joint ventures | — | 273 | — | 273 | ||||
| Add: amortization of restricted stock and restricted stock units | 461 | 372 | 1,360 | 1,110 | ||||
| Add: amortization of deferred mortgage costs | 80 | 71 | 240 | 228 | ||||
| Add: our share of deferred mortgage costs from unconsolidated joint venture properties | 156 | 246 | 479 | 831 | ||||
| Less: our share of gain on insurance proceeds from unconsolidated joint venture | (350) | — | (519) | (414) | ||||
| Adjustments for non-controlling interests | 2 | (123) | 5 | (121) | ||||
| Adjusted funds from operations attributable to common stockholders | $ | 4,894 | $ | 4,178 | $ | 13,574 | $ | 11,767 |
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2020 | 2019 | 2020 | 2019 | |||||
| GAAP Net loss attributable to common stockholders | $ | (0.44) | $ | 0.20 | $ | (0.97) | $ | (0.33) |
| Add: depreciation of properties | 0.11 | 0.09 | 0.31 | 0.28 | ||||
| Add: our share of depreciation in unconsolidated joint ventures | 0.39 | 0.39 | 1.16 | 1.17 | ||||
| Add: Impairment charge | 0.21 | — | 0.21 | — | ||||
| Deduct: gain on sale of real estate | — | (0.62) | — | (0.63) | ||||
| Adjustment for non-controlling interests | — | 0.06 | — | 0.05 | ||||
| NAREIT Funds from operations per diluted common share | 0.27 | 0.12 | 0.71 | 0.54 | ||||
| Adjustments for: straight line rent accruals | — | — | — | — | ||||
| Add: loss on extinguishment of debt | — | 0.09 | — | 0.09 | ||||
| Add: our share of loss on extinguishment of debt from unconsolidated joint ventures | — | 0.02 | — | 0.02 | ||||
| Add: amortization of restricted stock and restricted stock units | 0.02 | 0.02 | 0.08 | 0.07 | ||||
| Add: amortization of deferred mortgage costs | — | — | 0.01 | 0.01 | ||||
| Add: our share of deferred mortgage costs from unconsolidated joint venture properties | 0.01 | 0.02 | 0.03 | 0.05 | ||||
| Less: our share of gain on insurance proceeds from unconsolidated joint venture | (0.02) | — | (0.03) | (0.03) | ||||
| Adjustments for non-controlling interests | — | (0.01) | — | (0.01) | ||||
| Adjusted funds from operations per diluted common share | $ | 0.28 | $ | 0.26 | $ | 0.80 | $ | 0.74 |
BRT Apartments Corp. (NYSE: BRT)
Consolidated Balance Sheets
(amounts in thousands, except per share amounts)
_____________________________________________________________________________________________________________________
| December 31, 2019 | |||
|---|---|---|---|
| ASSETS | |||
| Real estate properties, net | 161,594 | $ | 169,689 |
| Investments in unconsolidated joint ventures | 177,071 | ||
| Real estate loan | 4,150 | ||
| Cash and cash equivalents | 22,699 | ||
| Restricted cash | 9,719 | ||
| Other assets | 7,282 | ||
| Total Assets | 374,247 | $ | 390,610 |
| LIABILITIES AND EQUITY | |||
| Liabilities: | |||
| Mortgages payable, net of deferred costs | 131,148 | $ | 133,215 |
| Junior subordinated notes, net of deferred costs | 37,063 | ||
| Accounts payable and accrued liabilities | 20,772 | ||
| Total Liabilities | 191,050 | ||
| Commitments and contingencies | |||
| Equity: | |||
| BRT Apartments Corp. stockholders' equity: | |||
| Preferred shares .01 par value 2,000 shares authorized, none issued | — | ||
| Common stock, .01 par value, 300,000 shares authorized; | |||
| 16,176 and 15,638 shares outstanding | 156 | ||
| Additional paid-in capital | 232,331 | ||
| Accumulated other comprehensive loss | (10) | ||
| Accumulated deficit | (32,824) | ||
| Total BRT Apartments Corp. stockholders’ equity | 199,653 | ||
| Non-controlling interests | (93) | ||
| Total Equity | 199,560 | ||
| Total Liabilities and Equity | 374,247 | $ | 390,610 |
All values are in US Dollars.
BRT Apartments Corp. (NYSE: BRT)
Balance Sheet of Unconsolidated Joint Venture Entities
(amounts in thousands, except per share amounts)
_____________________________________________________________________________________________________________________
At September 30, 2020, the Company held interests in unconsolidated joint ventures that own 31 multi-family properties (the "Unconsolidated Properties"). The condensed balance sheet below present information regarding such properties (dollars in thousands):
| September 30, 2020 | ||
|---|---|---|
| ASSETS | ||
| Real estate properties, net of accumulated depreciation of $135,126 | $ | 1,082,703 |
| Cash and cash equivalents | 16,595 | |
| Deposits and escrows | 26,368 | |
| Other assets | 5,164 | |
| Total Assets | $ | 1,130,830 |
| LIABILITIES AND EQUITY | ||
| Liabilities: | ||
| Mortgages payable, net of deferred costs of $4,605 | $ | 825,822 |
| Accounts payable and accrued liabilities | 23,602 | |
| Total Liabilities | 849,424 | |
| Commitments and contingencies | ||
| Equity: | ||
| Total unconsolidated joint venture equity | 281,406 | |
| Total Liabilities and Equity | $ | 1,130,830 |
| BRT interest in joint venture equity | $ | 175,484 |
| Unconsolidated Mortgages Payable: | ||
| BRT Share | $ | 526,651 |
| Partner Share | 299,171 | |
| Total | $ | 825,822 |
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Quarter ended September 30, 2020
(dollars in thousands, except monthly rent amounts)
_____________________________________________________________________________________________________________________
| Consolidated | |||||||
|---|---|---|---|---|---|---|---|
| Units | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Average Occupancy<br> (2) | Average Rent per Occ. Unit<br> (2) | |
| Texas | 464 | $1,395 | $870 | $525 | 14% | 94.5% | $925 |
| Georgia | 448 | 1,596 | 658 | 938 | 26% | 96.4% | 1,092 |
| Florida | 276 | 1,044 | 424 | 620 | 17% | 97.7% | 1,130 |
| Ohio | 264 | 768 | 327 | 441 | 12% | 95.2% | 937 |
| Virginia | 220 | 1,029 | 424 | 605 | 16% | 97.9% | 1,418 |
| South Carolina | 208 | 814 | 437 | 377 | 10% | 93.6% | 1,191 |
| Other (3) | — | 374 | 149 | 225 | 5% | N/A | N/A |
| Current Portfolio Totals | 1,880 | $7,020 | $3,289 | $3,731 | 100% | 95.8% | $1,085 |
| Unconsolidated (Pro-Rata Share) (1) | |||||||
| Units | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Average Occupancy<br> (2) | Average Rent per Occ. Unit<br> (2) | |
| Texas | 2,561 | $5,210 | $2,912 | $2,298 | 22% | 90.5% | $1,122 |
| South Carolina | 1,183 | 2,301 | 1,228 | 1,073 | 11% | 94.8% | 1,087 |
| Georgia | 1,097 | 2,484 | 1,194 | 1,290 | 13% | 96.1% | 1,110 |
| Florida | 972 | 2,156 | 1,171 | 985 | 10% | 95.2% | 1,048 |
| Alabama | 940 | 2,341 | 1,067 | 1,274 | 12% | 97.1% | 920 |
| Mississippi | 776 | 1,458 | 539 | 919 | 9% | 97.3% | 998 |
| Tennessee | 702 | 1,758 | 873 | 885 | 9% | 95.6% | 1,182 |
| North Carolina | 576 | 1,442 | 650 | 792 | 8% | 94.4% | 1,047 |
| Missouri | 355 | 1,326 | 627 | 699 | 6% | 95.1% | 1,494 |
| Other (3) | — | 13 | 10 | 3 | — | N/A | N/A |
| Current Portfolio Totals | 9,162 | $20,489 | $10,271 | $10,218 | 100% | 94.2% | $1,086 |
_________________________________________________________________________________
(1) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI and pro-rata share under "Non-GAAP Financial Measures and Definitions."
(2) Excludes properties that were sold or not stabilized for the full period presented.
(3) Includes properties sold during the periods presented and legacy assets.
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Nine months ended September 30, 2020
(dollars in thousands, except monthly rent amounts)
____________________________________________________________________________________________________________________
| Consolidated | |||||||
|---|---|---|---|---|---|---|---|
| Units | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Average Occupancy<br> (2) | Average Rent per Occ. Unit<br> (2) | |
| Texas | 464 | $4,280 | $2,347 | $1,933 | 17% | 92.8% | $925 |
| Georgia | 448 | 5,232 | 2,179 | 3,053 | 28% | 96.1% | 1,083 |
| Florida | 276 | 2,327 | 1,223 | 1,104 | 10% | 94.4% | 1,108 |
| Ohio | 264 | 2,408 | 877 | 1,531 | 14% | 94.4% | 927 |
| Virginia | 220 | 2,932 | 993 | 1,939 | 18% | 95.4% | 1,410 |
| South Carolina | 208 | 2,189 | 1,377 | 812 | 7% | 93.1% | 1,178 |
| Other (3) | — | 1,054 | 355 | 699 | 6% | N/A | N/A |
| Current Portfolio Totals | 1,880 | $20,422 | $9,351 | $11,071 | 100% | 94.4% | $1,075 |
| Unconsolidated (Pro-Rata Share) (1) | |||||||
| Units | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Average Occupancy<br> (2) | Average Rent per Occ. Unit<br> (2) | |
| Texas | 2,561 | $15,572 | $8,334 | $7,238 | 23% | 91.2% | $1,118 |
| South Carolina | 1,183 | 6,711 | 3,462 | 3,249 | 10% | 89.7% | 1,111 |
| Georgia | 1,097 | 7,175 | 3,496 | 3,679 | 12% | 91.8% | 1,108 |
| Florida | 972 | 6,376 | 3,157 | 3,219 | 10% | 94.1% | 1,062 |
| Alabama | 940 | 6,864 | 3,035 | 3,829 | 12% | 96.4% | 904 |
| Mississippi | 776 | 4,290 | 1,568 | 2,722 | 9% | 96.2% | 982 |
| Tennessee | 702 | 5,064 | 2,228 | 2,836 | 9% | 96.5% | 1,194 |
| North Carolina | 576 | 3,952 | 1,651 | 2,301 | 7% | 93.8% | 973 |
| Missouri | 355 | 3,949 | 1,801 | 2,148 | 7% | 96.5% | 1,483 |
| Other (3) | — | 18 | 35 | (17) | — | N/A | N/A |
| Current Portfolio Totals | 9,162 | $59,971 | $28,767 | $31,204 | 100% | 93.1% | $1,081 |
_________________________________________________________________________________
(1) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI and pro-rata share under "Non-GAAP Financial Measures and Definitions."
(2) Excludes properties that were sold or not stabilized for the full period presented.
(3) Includes properties sold during the periods presented and legacy assets.
BRT Apartments Corp. (NYSE: BRT)
Consolidated Same Store Comparisons
Quarters ended September 30, 2020 and 2019
(dollars in thousands, except monthly rent amounts)
_____________________________________________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Units | 2020 | 2019 | % Change | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||
| Georgia | 448 | 1,596 | 1,536 | 3.9 | % | $658 | $594 | 10.8 | % | 938 | $942 | (0.4) | % |
| Florida | 276 | 1,044 | 993 | 5.1 | % | 424 | 419 | 1.2 | % | 620 | 574 | 8.0 | % |
| Texas | 272 | 740 | 669 | 10.6 | % | 489 | 399 | 22.6 | % | 251 | 270 | (7.0) | % |
| Ohio | 264 | 768 | 761 | 0.9 | % | 327 | 302 | 8.3 | % | 441 | 459 | (3.9) | % |
| Virginia | 220 | 1,029 | 984 | 4.6 | % | 424 | 392 | 8.2 | % | 605 | 592 | 2.2 | % |
| South Carolina | 208 | 814 | 805 | 1.1 | % | 437 | 386 | 13.2 | % | 377 | 419 | (10.0) | % |
| Totals | 1,688 | 5,991 | 5,748 | 4.2 | % | $2,759 | $2,492 | 10.7 | % | 3,232 | $3,256 | (0.7) | % |
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | ||||||||||||
| 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||
| Georgia | 96.4 | 97.6 | (1.2) | % | $1,092 | $1,036 | 5.4 | % | |||||
| Florida | 97.7 | 96.3 | 1.5 | % | 1,130 | 1,086 | 4.1 | % | |||||
| Texas | 93.3 | 88.8 | 5.1 | % | 846 | 809 | 4.6 | % | |||||
| Ohio | 95.2 | 96.4 | (1.2) | % | 937 | 921 | 1.7 | % | |||||
| Virginia | 97.9 | 95.4 | 2.6 | % | 1,418 | 1,400 | 1.3 | % | |||||
| South Carolina | 93.6 | 95.4 | (1.9) | % | 1,191 | 1,168 | 2.0 | % | |||||
| Weighted Average | 95.8 | 95.2 | 0.6 | % | $1,091 | $1,056 | 3.3 | % |
All values are in US Dollars.
_______________________________
See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
BRT Apartments Corp. (NYSE: BRT)
Consolidated Same Store Comparisons
Nine months ended September 30, 2020 and 2019
(dollars in thousands, except monthly rent amounts)
____________________________________________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Units | 2020 | 2019 | % Change | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||
| Georgia | 448 | 4,710 | 4,439 | 6.1 | % | $1,870 | $1,824 | 2.5 | % | $2,840 | $2,615 | 8.6 | % |
| Florida | 276 | 2,932 | 2,880 | 1.8 | % | 1,223 | 1,220 | 0.2 | % | 1,709 | 1,660 | 3.0 | % |
| Texas | 272 | 2,189 | 2,043 | 7.1 | % | 1,377 | 1,164 | 18.3 | % | 812 | 879 | (7.6) | % |
| Ohio | 264 | 2,255 | 2,190 | 3.0 | % | 1,006 | 940 | 7.0 | % | 1,249 | 1,250 | (0.1) | % |
| Virginia | 220 | 2,977 | 2,892 | 2.9 | % | 1,173 | 1,070 | 9.6 | % | 1,804 | 1,822 | (1.0) | % |
| South Carolina | 208 | 2,408 | 2,418 | (0.4) | % | 1,294 | 1,185 | 9.2 | % | 1,114 | 1,233 | (9.7) | % |
| Totals | 1,688 | 17,471 | 16,862 | 3.6 | % | $7,943 | $7,403 | 7.3 | % | $9,528 | $9,459 | 0.7 | % |
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | ||||||||||||
| 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||
| Georgia | 96.1 | 95.1 | 1.1 | % | $1,083 | $1,018 | 6.4 | % | |||||
| Florida | 94.4 | 97.7 | (3.4) | % | 1,108 | 1,054 | 5.1 | % | |||||
| Texas | 92.8 | 90.5 | 2.5 | % | 846 | 801 | 5.6 | % | |||||
| Ohio | 94.4 | 94.1 | 0.3 | % | 927 | 898 | 3.2 | % | |||||
| Virginia | 95.4 | 95.6 | (0.2) | % | 1,410 | 1,382 | 2.0 | % | |||||
| South Carolina | 93.1 | 94.8 | (1.8) | % | 1,178 | 1,157 | 1.8 | % | |||||
| Weighted Average | 94.6 | 94.6 | 0.0 | % | $1,080 | $1,037 | 4.1 | % |
All values are in US Dollars.
_______________________________
See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons
Quarters ended September 30, 2020 and 2019
BRT Pro-rata Share
(dollars in thousands, except monthly rent amounts)
________________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Units | 2020 | 2019 | % Change | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||
| Texas | 2,561 | 5,210 | 5,218 | (0.2) | % | $2,912 | $2,686 | 8.4 | % | $2,298 | $2,532 | (9.2) | % |
| Georgia | 1,097 | 2,484 | 2,398 | 3.6 | % | 1,194 | 1,109 | 7.7 | % | 1,290 | 1,289 | 0.1 | % |
| Florida | 972 | 2,156 | 2,110 | 2.2 | % | 1,171 | 1,087 | 7.7 | % | 985 | 1,023 | (3.7) | % |
| South Carolina | 844 | 1,708 | 1,657 | 3.1 | % | 996 | 883 | 12.8 | % | 712 | 774 | (8.0) | % |
| Mississippi | 776 | 1,458 | 1,408 | 3.6 | % | 539 | 529 | 1.9 | % | 919 | 879 | 4.6 | % |
| Alabama | 740 | 1,895 | 1,759 | 7.7 | % | 853 | 763 | 11.8 | % | 1,042 | 996 | 4.6 | % |
| Missouri | 355 | 1,326 | 1,305 | 1.6 | % | 627 | 594 | 5.6 | % | 699 | 711 | (1.7) | % |
| North Carolina | 312 | 800 | 744 | 7.5 | % | 378 | 324 | 16.7 | % | 422 | 420 | 0.5 | % |
| Tennessee | 300 | 878 | 890 | (1.3) | % | 404 | 338 | 19.5 | % | 474 | 552 | (14.1) | % |
| Totals | 7,957 | 17,915 | 17,489 | 2.4 | % | $9,074 | $8,313 | 9.2 | % | $8,841 | $9,176 | (3.7) | % |
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | ||||||||||||
| 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||
| Texas | 90.5 | 93.2 | (2.9) | % | $1,122 | $1,097 | 2.3 | % | |||||
| Georgia | 96.1 | 95.1 | 1.1 | % | 1,110 | 1,076 | 3.2 | % | |||||
| Florida | 95.2 | 94.1 | 1.2 | % | 1,048 | 1,051 | (0.3) | % | |||||
| South Carolina | 94.8 | 92.4 | 2.6 | % | 1,087 | 1,105 | (1.6) | % | |||||
| Mississippi | 97.3 | 97.5 | (0.2) | % | 998 | 956 | 4.4 | % | |||||
| Alabama | 97.2 | 96.9 | 0.3 | % | 934 | 887 | 5.3 | % | |||||
| Missouri | 95.1 | 94.0 | 1.2 | % | 1,494 | 1,499 | (0.3) | % | |||||
| North Carolina | 94.4 | 90.7 | 4.1 | % | 1,104 | 1,086 | 1.7 | % | |||||
| Tennessee | 95.6 | 98.1 | (2.5) | % | 1,182 | 1,166 | 1.4 | % | |||||
| Weighted Average | 94.1 | 94.5 | (0.4) | % | $1,092 | $1,057 | 3.3 | % |
All values are in US Dollars.
________________________________
See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons
Nine months ended September 30, 2020 and 2019
BRT Pro-rata Share
(dollars in thousands, except monthly rent amounts)
_______________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Units | 2020 | 2019 | % Change | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||
| Texas | 2,561 | 15,572 | 15,380 | 1.2 | % | $8,334 | $7,952 | 4.8 | % | $7,238 | $7,428 | (2.6) | % |
| Georgia | 1,097 | 7,175 | 6,921 | 3.7 | % | 3,496 | 3,249 | 7.6 | % | 3,679 | 3,672 | 0.2 | % |
| Florida | 972 | 6,376 | 6,132 | 4.0 | % | 3,157 | 3,052 | 3.4 | % | 3,219 | 3,080 | 4.5 | % |
| South Carolina | 844 | 5,023 | 5,047 | (0.5) | % | 2,758 | 2,706 | 1.9 | % | 2,265 | 2,341 | (3.2) | % |
| Mississippi | 776 | 4,290 | 4,148 | 3.4 | % | 1,568 | 1,547 | 1.4 | % | 2,722 | 2,601 | 4.7 | % |
| Alabama | 412 | 2,926 | 2,667 | 9.7 | % | 1,313 | 1,200 | 9.4 | % | 1,613 | 1,467 | 10.0 | % |
| Missouri | 355 | 3,949 | 3,786 | 4.3 | % | 1,801 | 1,743 | 3.3 | % | 2,148 | 2,043 | 5.1 | % |
| Tennessee | 300 | 2,641 | 2,594 | 1.8 | % | 1,024 | 991 | 3.3 | % | 1,617 | 1,603 | 0.9 | % |
| Totals | 7,317 | 47,952 | 46,675 | 2.7 | % | $23,451 | $22,440 | 4.5 | % | $24,501 | $24,235 | 1.1 | % |
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | ||||||||||||
| 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||
| Texas | 91.2 | 92.6 | (1.5) | % | $1,118 | $1,089 | 2.7 | % | |||||
| Georgia | 91.8 | 93.2 | (1.5) | % | 1,108 | 1,056 | 4.9 | % | |||||
| Florida | 94.1 | 94.2 | (0.1) | % | 1,062 | 1,035 | 2.6 | % | |||||
| South Carolina | 89.9 | 91.6 | (1.9) | % | 1,111 | 1,103 | 0.7 | % | |||||
| Mississippi | 96.2 | 97.1 | (0.9) | % | 982 | 945 | 3.9 | % | |||||
| Alabama | 97.7 | 96.6 | 1.1 | % | 855 | 803 | 6.5 | % | |||||
| Missouri | 96.5 | 94.1 | 2.6 | % | 1,483 | 1,460 | 1.6 | % | |||||
| Tennessee | 96.5 | 97.7 | (1.2) | % | 1,194 | 1,147 | 4.1 | % | |||||
| Weighted Average | 93.1 | 93.8 | (0.7) | % | $1,099 | $1,066 | 3.1 | % |
All values are in US Dollars.
________________________________
See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data Combined
(dollars in thousands, except monthly rent amounts)
________________________________________________________________________________________
Quarter Ended September 30,
| Portfolio | 2020 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | Property Operating Expenses | NOI | |||||||||
| Consolidated | $7,020 | $3,289 | 3,731 | ||||||||
| Unconsolidated (1) | 20,489 | 10,271 | 10,218 | ||||||||
| Combined | $27,509 | $13,560 | 13,949 | ||||||||
| Same Store | |||||||||||
| 2020 | Variance | ||||||||||
| Revenues | Property Operating Expenses | NOI | Property Operating Expenses | NOI | Revenues | Property Operating Expenses | NOI | ||||
| Consolidated | $5,991 | $2,759 | 3,232 | $2,492 | $3,256 | 4.2 | % | 10.7 | % | (0.7) | % |
| Unconsolidated (1) | 17,915 | 9,074 | 8,841 | 8,313 | 9,176 | 2.4 | % | 9.2 | % | (3.7) | % |
| Combined | $23,906 | $11,833 | 12,073 | $10,805 | $12,432 | 2.9 | % | 9.5 | % | (2.9) | % |
All values are in US Dollars.
_____________________________________________________________
Nine Months ended September 30,
| Portfolio | 2020 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | Property Operating Expenses | NOI | |||||||||
| Consolidated | $20,422 | $9,351 | 11,071 | ||||||||
| Unconsolidated (1) | 59,971 | 28,767 | 31,204 | ||||||||
| Combined | $80,393 | $38,118 | 42,275 | ||||||||
| Same Store | |||||||||||
| 2020 | Variance | ||||||||||
| Revenues | Property Operating Expenses | NOI | Property Operating Expenses | NOI | Revenues | Property Operating Expenses | NOI | ||||
| Consolidated | $17,471 | $7,943 | 9,528 | $7,403 | $9,459 | 3.6 | % | 7.3 | % | 0.7 | % |
| Unconsolidated (1) | 47,952 | 23,451 | 24,501 | 22,440 | 24,235 | 2.7 | % | 4.5 | % | 1.1 | % |
| Combined | $65,423 | $31,394 | 34,029 | $29,843 | $33,694 | 3.0 | % | 5.2 | % | 1.0 | % |
All values are in US Dollars.
(1) Unconsolidated amounts represent BRT's pro-rata share. See definition of pro-rata under "Non-GAAP Financial Measures and Definitions.".
BRT Apartments Corp. (NYSE: BRT)
Acquisitions and Dispositions
(dollars in thousands)
________________________________________________________________________________________
| Acquisition during the nine months ended September 30, 2020 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Location | Purchase Date | Units | Purchase Price | Acquisition Mortgage Debt | Initial BRT Equity | Ownership Percentage | Capitalized Acquisition Costs | |||||
| Wilmington, NC (1) | 2/20/2020 | 264 | $ | 38,000 | $ | 23,160 | $ | 13,700 | 80 | % | $ | 459 |
(1) Unconsolidated property
There were no dispositions during the nine months ended September 30, 2020
BRT Apartments Corp. (NYSE: BRT)
Value-Add Program and Capital Expenditures
Quarter ended September 30, 2020
________________________________________________________________________________________
| Value-Add Program | ||||||
|---|---|---|---|---|---|---|
| (Includes consolidated and unconsolidated amounts) | ||||||
| Units Rehabilitated (1) | Estimated Rehab Costs (2) | Estimated Rehab Costs Per unit | Estimated Average Monthly Rent Increase (3) | Estimated Annualized ROI (3) | Estimated units available to be renovated (24 months) | |
| 52 | $302,000 | $5,808 | $109 | 23% | 600 | |
| (1) Refers to rehabilitated units with respect to which a new lease or renewal lease was entered into during the period. | ||||||
| (2) Reflects rehab costs incurred during the current and prior periods with respect to units completed, in which a new<br> lease or renewal lease was entered into during the current period. | ||||||
| (3) These results are not necessarily indicative of the results that would be generated if such improvements were made<br> across our portfolio of properties or at any particular property. Rents at a property may increase for reasons wholly<br> unrelated to property improvements, such as changes in demand for rental units in a particular market or<br> sub-market. Even if units are available to be renovated, the Company may decide not to renovate such units. | ||||||
| Capital Expenditures | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| (Includes consolidated and unconsolidated amounts) | ||||||
| Gross Capital Expenditures | Less: JV Partner Share | BRT Share of Capital Expenditures (4) | ||||
| Estimated Recurring Capital Expenditures (1) | $ | 252,000 | $ | 49,276 | $ | 202,724 |
| Estimated Non-Recurring Capital Expenditures (2) | 1,243,000 | 299,486 | 943,514 | |||
| Total Capital Expenditures | $ | 1,495,000 | $ | 348,762 | $ | 1,146,238 |
| Replacements (operating expense) (3) | $ | 640,912 | $ | 182,585 | $ | 458,327 |
| Estimated Recurring Capital Expenditures and <br>Replacements per unit (11,042 units) | $ | 81 | $ | 21 | $ | 60 |
| (1) Recurring capital expenditures represent our estimate of expenditures incurred at the property to maintain the property's existing operations -<br> it excludes revenue enhancing projects. | ||||||
| (2) Non-recurring capital expenditures represent our estimate of significant improvements to the common areas, property exteriors, or interior<br> units of the property, and revenue enhancing upgrades. | ||||||
| (3) Replacements are expensed as incurred at the property. | ||||||
| (4) Based on BRT's equity interest. |
BRT Apartments Corp. (NYSE: BRT)
Debt Analysis
As of September 30, 2020
(dollars in thousands)
____________________________________________________________________________________________________________________________________
| Consolidated | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | Total Principal Payments | Scheduled Amortization | Principal Payments Due at Maturity | Percent of Total Principal Payments Due At Maturity | Weighted Average Interest Rate (1) | |||||||
| 2020 | $ | 779 | $ | 779 | $ | — | — | — | ||||
| 2021 | 17,274 | 3,272 | 14,002 | 12 | % | 4.29 | % | |||||
| 2022 | 62,543 | 1,924 | 60,619 | 54 | % | 4.29 | % | |||||
| 2023 | 1,270 | 1,270 | — | — | — | |||||||
| 2024 | 1,316 | 1,316 | — | — | — | |||||||
| Thereafter | 48,594 | 10,055 | 38,539 | 34 | % | 4.03 | % | |||||
| Total | $ | 131,776 | $ | 18,616 | $ | 113,160 | 100 | % | ||||
| Unconsolidated (BRT pro rata share) | ||||||||||||
| Year | Total Principal Payments | Scheduled Amortization | Principal Payments Due at Maturity | Percent of Total Principal Payments Due At Maturity | Weighted Average Interest Rate (1) | |||||||
| 2020 | $ | 660 | $ | 660 | $ | — | — | — | ||||
| 2021 | 22,422 | 3,305 | 19,117 | 4 | % | 2.70 | % | |||||
| 2022 | 48,274 | 4,815 | 43,459 | 10 | % | 3.39 | % | |||||
| 2023 | 29,577 | 4,992 | 24,585 | 5 | % | 4.12 | % | |||||
| 2024 | 5,770 | 5,770 | — | — | — | |||||||
| Thereafter | 419,948 | 51,807 | 368,140 | 81 | % | 4.18 | % | |||||
| Total | $ | 526,651 | $ | 71,350 | $ | 455,301 | 100 | % | ||||
| Combined | ||||||||||||
| Year | Total Principal Payments | Scheduled Amortization | Principal Payments Due at Maturity | Percent of Total Principal Payments Due At Maturity | Weighted Average Interest Rate (1) | |||||||
| 2020 | $ | 1,439 | $ | 1,439 | $ | — | — | — | ||||
| 2021 | 39,696 | 6,577 | 33,119 | 6 | % | 3.68 | % | |||||
| 2022 | 110,817 | 6,739 | 104,078 | 18 | % | 4.06 | % | |||||
| 2023 | 30,847 | 6,262 | 24,585 | 4 | % | 4.05 | % | |||||
| 2024 | 7,086 | 7,086 | — | — | — | |||||||
| Thereafter | 468,542 | 61,862 | 406,679 | 72 | % | 4.15 | % | |||||
| Total | $ | 658,427 | $ | 89,965 | $ | 568,461 | 100 | % | ||||
| Weighted Average Remaining Term to Maturity (2) | 6.2 years | |||||||||||
| Weighted Average Interest Rate (2) | 4.03 | % | ||||||||||
| Debt Service Coverage Ratio for the quarter ended September 30, 2020 | 1.47 | (3) | ||||||||||
| (1) Based on balloon payments at maturity. Includes consolidated and BRT pro rata share amounts | ||||||||||||
| (2) Includes consolidated and BRT pro rata share unconsolidated amounts. | ||||||||||||
| (3) See definition under "Non-GAAP Financial Measures and Definitions." Includes consolidated and 100% of the unconsolidated amounts. | ||||||||||||
| Junior Subordinated Notes | ||||||||||||
| --- | --- | |||||||||||
| Principal Balance | $37,400 | |||||||||||
| Interest Rate | 3 month LIBOR + 2.00% (i.e, 2.27% at 9/30/20) | |||||||||||
| Maturity | April 30, 2036 | |||||||||||
| Credit Facility (as of November 5, 2020) | ||||||||||||
| Maximum Amount Available | Up to $10,000 | |||||||||||
| Amount Outstanding | $0 | |||||||||||
| Interest Rate | Prime + 0.50% (floor of 5.00%) |
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)
________________________________________________________________________________________
We compute NOI by adjusting net income (loss) to (a) add back (1) depreciation expense, (2) general and administrative expenses, (3) interest expense, (4) loss on extinguishment of debt, (5) equity in loss of unconsolidated joint ventures, (6) provision for taxes, (7) the impact of non-controlling interests, and (b) deduct (1) other income, (2) gain on sale of real estate, and (3) gain on insurance recoveries related to casualty loss. We define "Same Store NOI" as NOI for all our consolidated properties that were owned for the entirety of the periods being presented, other than properties in lease up and developments. Other REIT’s may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to other REIT’s. We believe NOI provides an operating perspective not immediately apparent from GAAP operating income or net (loss) income. NOI is one of the measures we use to evaluate our performance because it (i) measures the core operations of property performance by excluding corporate level expenses and other items unrelated to property operating performance and (ii) captures trends in rental housing and property operating expenses. We view Same Store NOI as an important measure of operating performance because it allows a comparison of operating results of properties owned for the entirety of the current and comparable periods and therefore eliminates variations caused by acquisitions or dispositions during the periods. However, NOI should only be used as an alternative measure of our financial performance.
The following tables provides a reconciliation of NOI to net income attributable to common stockholders as computed in accordance with GAAP for the periods presented for the consolidated properties:
| Consolidated | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||
| GAAP Net loss attributable to common stockholders | $ | (7,484) | $ | 3,272 | $ | (16,561) | $ | (5,292) |
| Less: Other Income | (293) | (161) | (631) | (595) | ||||
| Add: Interest expense | 1,731 | 1,870 | 5,400 | 5,865 | ||||
| General and administrative | 2,730 | 2,430 | 9,054 | 7,455 | ||||
| Impairment charge | 3,642 | — | 3,642 | — | ||||
| Depreciation | 1,777 | 1,373 | 5,147 | 4,348 | ||||
| Provision for taxes | 65 | 98 | 192 | 219 | ||||
| Less: Gain on sale of real estate | — | (9,938) | — | (9,938) | ||||
| Add: Loss on extinguishment of debt | — | 1,387 | — | 1,387 | ||||
| Equity in loss of unconsolidated joint venture properties | 1,529 | 2,390 | 4,731 | 6,676 | ||||
| Add: Net loss attributable to non-controlling interests | 34 | 799 | 97 | 877 | ||||
| Net Operating Income | $ | 3,731 | $ | 3,520 | 11,071 | 11,002 | ||
| Less: Non-same store Net Operating Income | $ | (498) | $ | (264) | $ | (1,543) | $ | (1,543) |
| Same store Net Operating Income | $ | 3,233 | $ | 3,256 | $ | 9,528 | $ | 9,459 |
The following tables provides a reconciliation of NOI to net income attributable to common stockholders as computed in accordance with GAAP for the periods presented for BRT's pro rata share of the unconsolidated properties:
| Unconsolidated | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||
| BRT equity in loss from joint ventures | $ | (1,529) | $ | (2,390) | $ | (4,731) | $ | (6,676) |
| Add: Interest expense | 5,571 | 5,885 | 16,746 | 16,639 | ||||
| Depreciation | 6,623 | 6,364 | 19,822 | 18,516 | ||||
| Other non-multi family | (447) | 341 | (633) | (302) | ||||
| Net Operating Income | $ | 10,218 | $ | 10,200 | $ | 31,204 | $ | 28,177 |
| Less: Non-same store Net Operating Income | $ | (1,373) | $ | (1,032) | $ | (6,704) | $ | (3,942) |
| Same store Net Operating Income | $ | 8,845 | $ | 9,168 | $ | 24,500 | $ | 24,235 |
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)
_____________________________________________________________________________________________________________________
The condensed income statements below present, for the periods indicated, a reconciliation of the information that appears in note 9 of BRT's Quarterly report on Form 10-Q to the BRT pro rata information presented here in this supplemental.
| Three Months Ended September 30, 2020 | ||||||
|---|---|---|---|---|---|---|
| Total | Partner Share | BRT Share | ||||
| Revenues: | ||||||
| Rental and other revenue | $ | 32,341 | $ | 11,852 | $ | 20,489 |
| Total revenues | 32,341 | 11,852 | 20,489 | |||
| Expenses: | ||||||
| Real estate operating expenses | 16,092 | 5,821 | 10,271 | |||
| Interest expense | 8,663 | 3,092 | 5,571 | |||
| Depreciation | 10,411 | 3,788 | 6,623 | |||
| Total expenses | 35,166 | 12,701 | 22,465 | |||
| Total revenues less total expenses | (2,825) | (849) | (1,976) | |||
| Equity in earnings | — | (97) | 97 | |||
| Gain on insurance recoveries | 427 | 77 | 350 | |||
| Loss on extinguishment of debt | — | — | — | |||
| Net loss | $ | (2,398) | $ | (869) | $ | (1,529) |
| Three Months Ended September 30, 2019 | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Total | Partner Share | BRT Share | ||||
| Revenues: | ||||||
| Rental and other revenue | $ | 31,273 | $ | 11,327 | $ | 19,946 |
| Total revenues | $ | 31,273 | $ | 11,327 | $ | 19,946 |
| Expenses: | ||||||
| Real estate operating expenses | 15,212 | 5,466 | 9,746 | |||
| Interest expense | 9,202 | 3,317 | 5,885 | |||
| Depreciation | 9,901 | 3,537 | 6,364 | |||
| Total expenses | 34,315 | 12,320 | 21,995 | |||
| Total revenues less total expenses | (3,042) | (993) | (2,049) | |||
| Gain on sale of real estate properties | — | — | — | |||
| Gain on insurance recoveries | — | 67 | (67) | |||
| Loss on extinguishment of debt | (379) | (105) | (274) | |||
| Net loss | $ | (3,421) | $ | (1,031) | $ | (2,390) |
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)
_____________________________________________________________________________________________________________________
The condensed income statements below present for the periods indicated a reconciliation of the information that appears in note 9 of BRT's Quarterly report on Form 10-Q to the BRT pro rata information presented here in this supplemental.
| Nine Months Ended September 30, 2020 | ||||||
|---|---|---|---|---|---|---|
| Total | Partner Share | BRT Share | ||||
| Revenues: | ||||||
| Rental and other revenue | $ | 94,726 | $ | 34,755 | $ | 59,971 |
| Total revenues | 94,726 | 34,755 | 59,971 | |||
| Expenses: | ||||||
| Real estate operating expenses | 45,298 | 16,531 | 28,767 | |||
| Interest expense | 26,186 | 9,440 | 16,746 | |||
| Depreciation | 31,184 | 11,362 | 19,822 | |||
| Total expenses | 102,668 | 37,333 | 65,335 | |||
| Total revenues less total expenses | (7,942) | (2,578) | (5,364) | |||
| Gain on sale of real estate properties | — | — | ||||
| Loss on extinguishment of debt | — | — | — | |||
| Gain on insurance recoveries | 765 | 132 | 633 | |||
| Net loss | $ | (7,177) | $ | (2,446) | $ | (4,731) |
| Nine Months Ended September 30, 2019 | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Total | Partner Share | BRT Share | ||||
| Revenues: | ||||||
| Rental and other revenue | $ | 87,076 | $ | 31,628 | $ | 55,448 |
| Total revenues | 87,076 | 31,628 | 55,448 | |||
| Expenses: | ||||||
| Real estate operating expenses | 42,612 | 15,341 | 27,271 | |||
| Interest expense | 26,027 | 9,388 | 16,639 | |||
| Depreciation | 29,121 | 10,605 | 18,516 | |||
| Total expenses | 97,760 | 35,334 | 62,426 | |||
| Total revenues less total expenses | (10,684) | (3,706) | (6,978) | |||
| Gain on sale of real estate properties | — | — | ||||
| Loss on extinguishment of debt | (379) | (105) | (274) | |||
| Gain on insurance recoveries | 517 | (59) | 576 | |||
| Net loss | $ | (10,546) | $ | (3,870) | $ | (6,676) |
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)
________________________________________________________________________________________
Funds from Operations (FFO)
FFO is a non-GAAP financial performance measure defined by the National Association of Real Estate Investment Trusts and is widely recognized by investors and analysts as one measure of operating performance of a REIT. The FFO calculation excludes items such as real estate depreciation and amortization, gains and losses on the sale of real estate assets and impairment on depreciable assets. Historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, it is management’s view, and we believe the view of many industry investors and analysts, that the presentation of operating results for a REIT using the historical accounting for depreciation is insufficient. FFO excludes gains and losses from the sale of real estate, which we believe provides management and investors with a helpful additional measure of the performance of our real estate portfolio, as it allows for comparisons, year to year, that reflect the impact on operations from trends in items such as occupancy rates, rental rates, operating costs, general, administrative and other expenses, and interest expenses.
Adjusted Funds from Operations (AFFO)
AFFO excludes from FFO straight line rent adjustments, loss on extinguishment of debt, amortization of restricted stock and RSU expense, amortization of deferred mortgage costs and gain on insurance recovery. AFFO provides investors with supplemental performance information that is consistent with the performance models and analysis used by management and provides investors a view of the performance of our portfolio over time, including after the time we cease to acquire properties on a frequent and regular basis. We believe that AFFO enables investors to compare the performance of our portfolio with other REITs that have not recently engaged in acquisitions, as well as a comparison of our performance with that of other non-traded REITs, as AFFO, or an equivalent measure is routinely reported by non-traded REITs, and we believe often used by analysts and investors for comparison purposes.
Debt Service Coverage Ratio
Debt service coverage ratio is net operating income ("NOI") divided by total debt service and includes both consolidated and unconsolidated assets.
Total Debt Service
Total debt service is the cash required to cover the repayment of interest and principal on a debt for a particular period. Total debt service is used in the calculation of the debt service coverage ratio which is used to determine the borrower’s ability to make debt service payments.
Stabilized Properties
For all periods presented, stabilized properties include all our consolidated properties, other than those in lease-up or development.
Same Store
Same store refers to stabilized properties that we and our consolidated joint ventures owned and operated for the entirety of both periods being compared.
Pro-Rata Share
BRT's pro-rata share gives effect to its percentage equity interest in the unconsolidated joint ventures that own properties. Due to the operation of allocation/distribution provision of the joint venture agreements pursuant to which BRT participates in the ownership of these properties, BRT's share of the gain and loss on the sale of a property may be less than implied by BRT's percentage equity interest. Notwithstanding the foregoing, when referring to the number of units, average occupancy, and average rent per unit, the amount shown reflects 100% of the amount.
BRT Apartments Corp. (NYSE: BRT)
Portfolio Table
As of 11/5/2020
___________________________________________________________________________________________
| Property | City | State | Year Built | Year Acquired | Property Age | Units | Q3 2020 Avg. Occupancy | Q3 2020 Avg. Rent per Occ. Unit | % Ownership | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Properties | |||||||||||
| Silvana Oaks | North Charleston | SC | 2010 | 2012 | 11 | 208 | 93.6% | $ | 1,191 | 100 | % |
| Avondale Station | Decatur | GA | 1950 | 2012 | 71 | 212 | 94.6% | 1,181 | 100 | % | |
| Newbridge Commons | Columbus | OH | 1999 | 2013 | 22 | 264 | 95.2% | 937 | 100 | % | |
| Kendall Manor | Houston | TX | 1981 | 2014 | 40 | 272 | 93.3% | 846 | 100 | % | |
| Avalon | Pensacola | FL | 2008 | 2014 | 13 | 276 | 97.7% | 1,130 | 100 | % | |
| Parkway Grande | San Marcos | TX | 2014 | 2015 | 7 | 192 | 96.2% | 1,034 | 100 | % | |
| Woodland Trails | LaGrange | GA | 2010 | 2015 | 11 | 236 | 97.9% | 1,015 | 100 | % | |
| Kilburn Crossing | Fredericksburg | VA | 2005 | 2016 | 16 | 220 | 97.9% | 1,418 | 100 | % | |
| Weighted Avg./Total Consolidated | 24 | 1,880 | |||||||||
| Properties owned by Unconsolidated Joint Ventures | |||||||||||
| Brixworth at Bridgestreet | Huntsville | AL | 1985 | 2013 | 36 | 208 | 97.8% | 836 | 80 | % | |
| Crossings of Bellevue | Nashville | TN | 1985 | 2014 | 36 | 300 | 95.6% | 1,182 | 80 | % | |
| Retreat at Cinco Ranch | Katy | TX | 2008 | 2016 | 13 | 268 | 93.6% | 1,186 | 75 | % | |
| Grove at River Place | Macon | GA | 1988 | 2016 | 33 | 240 | 96.5% | 754 | 80 | % | |
| Civic Center 1 | Southaven | MS | 2002 | 2016 | 19 | 392 | 97.4% | 968 | 60 | % | |
| Verandas at Shavano Park | San Antonio | TX | 2014 | 2016 | 7 | 288 | 93.7% | 1,059 | 65 | % | |
| Chatham Court and Reflections | Dallas | TX | 1986 | 2016 | 35 | 494 | 80.7% | 963 | 50 | % | |
| Waters Edge at Harbison | Columbia | SC | 1996 | 2016 | 25 | 204 | 97.1% | 927 | 80 | % | |
| Pointe at Lenox Park | Atlanta | GA | 1989 | 2016 | 32 | 271 | 96.3% | 1,238 | 74 | % | |
| Civic Center 2 | Southaven | MS | 2005 | 2016 | 16 | 384 | 97.3% | 1,029 | 60 | % | |
| Verandas at Alamo Ranch | San Antonio | TX | 2015 | 2016 | 6 | 288 | 93.1% | 1,040 | 71.9 | % | |
| OPOP Towers | St. Louis | MO | 2014 | 2017 | 7 | 128 | 94.7% | 1,370 | 75.5 | % | |
| OPOP Lofts | St. Louis | MO | 2014 | 2017 | 7 | 53 | 93.0% | 1,426 | 75.5 | % | |
| Vanguard Heights | Creve Coeur | MO | 2016 | 2017 | 5 | 174 | 96.0% | 1,604 | 78.4 | % | |
| Mercer Crossing | Dallas | TX | 2014/2016 | 2017 | 7 | 509 | 90.1% | 1,324 | 50 | % | |
| Jackson Square | Tallahassee | FL | 1996 | 2017 | 25 | 242 | 95.5% | 1,074 | 80 | % | |
| Magnolia Pointe | Madison | AL | 1991 | 2017 | 30 | 204 | 96.6% | 944 | 80 | % | |
| Woodland Apartments | Boerne | TX | 2007 | 2017 | 14 | 120 | 94.3% | 1,003 | 80 | % | |
| The Avenue | Ocoee | FL | 1998 | 2018 | 23 | 522 | 95.3% | 1,088 | 50 | % | |
| Parc at 980 | Lawrenceville | GA | 1997 | 2018 | 24 | 586 | 95.8% | 1,198 | 50 | % | |
| Anatole Apartments | Daytona Beach | FL | 1986 | 2018 | 35 | 208 | 94.7% | 918 | 80 | % | |
| Landings of Carrier Parkway | Grand Prairie | TX | 2001 | 2018 | 20 | 281 | 95.4% | 1,116 | 50 | % | |
| Crestmont at Thornblade | Greenville | SC | 1998 | 2018 | 23 | 266 | 94.2% | 1,022 | 90 | % | |
| The Vive at Kellswater | Kannapolis | NC | 2011 | 2019 | 10 | 312 | 94.4% | 1,104 | 65 | % | |
| Somerset at Trussville | Trussville | AL | 2007 | 2019 | 14 | 328 | 97.2% | 990 | 80 | % | |
| The Village at Lakeside | Auburn | AL | 1988 | 2019 | 33 | 200 | 97.0% | 867 | 80 | % | |
| Canalside Lofts | Columbia | SC | 2008/2013 | 2017 | 13 | 374 | 93.9% | 1,223 | 32 | % | |
| Gateway Oaks | Forney | TX | 2016 | 2016 | 5 | 313 | 92.8% | 1,150 | 50 | % | |
| Abbotts Run | Wilmington | NC | 2001 | 2019 | 20 | 264 | 92.5% | 978 | 80 | % | |
| Weighted Avg./Total Unconsolidated | 20 | 8,421 | |||||||||
| Lease-Up Projects: (1) | |||||||||||
| Bell's Bluff | Nashville | TN | 2018 | 2 | 402 | 79.7% | 1,460 | 58.1 | % | ||
| Canalside Sola | Columbia | SC | 2018 | 2 | 339 | 85.0% | 1,370 | 46.2 | % | ||
| Weighted Avg./Total (lease-up) | 2 | 741 | |||||||||
| Weighted Avg./Total Portfolio | 19 | 11,042 | |||||||||
| (1) Unconsolidated |
21