false000001484600000148462020-11-052020-11-05

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

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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

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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

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.

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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.

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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

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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

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BRT APARTMENTS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in thousands, except per share data)

						Three Months Ended 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

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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

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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

SUPPLEMENTAL FINANCIAL INFORMATION FOR Q3 2020

November 5, 2020

60 Cutter Mill Rd., Great Neck, NY 11021

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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.

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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

    

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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 (Unaudited)						2019 (Unaudited)									2020 (Unaudited)						2019 (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."

1

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BRT Apartments Corp. (NYSE: BRT)

Operating Results

(dollars in thousands except per share data)

_____________________________________________________________________________________________________________________

			Three Months Ended September 30,												Nine Months Ended 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.

2

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BRT Apartments Corp. (NYSE: BRT)

Operating Results of Unconsolidated Properties

(dollars in thousands except per share data)

_____________________________________________________________________________________________________________________

						Three Months Ended September 30,												Nine Months Ended 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)

3

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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

4

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BRT Apartments Corp. (NYSE: BRT)

Consolidated Balance Sheets

(amounts in thousands, except per share amounts)

_____________________________________________________________________________________________________________________

			September 30, 2020 (unaudited)						December 31, 2019
ASSETS
Real estate properties, net			$	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
Liabilities:
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
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			164						156
Additional paid-in capital			245,144						232,331
Accumulated other comprehensive loss			(24)						(10)
Accumulated deficit			(60,853)						(32,824)
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

5

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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

6

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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 (2)						Average Rent per Occ. Unit (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 (2)						Average Rent per Occ. Unit (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.

7

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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 (2)						Average Rent per Occ. Unit (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 (2)						Average Rent per Occ. Unit (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.

8

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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)		%
																																																			0
												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		%

_______________________________

See definition of Same Store under "Non-GAAP Financial Measures and Definitions"

9

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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		%

_______________________________

See definition of Same Store under "Non-GAAP Financial Measures and Definitions"

10

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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		%

________________________________

See definition of Same Store under "Non-GAAP Financial Measures and Definitions"

11

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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		%

________________________________

See definition of Same Store under "Non-GAAP Financial Measures and Definitions"

12

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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																		2019																		Variance
			Revenues						Property Operating Expenses						NOI						Revenues						Property Operating Expenses						NOI						Revenues						Property Operating Expenses						NOI
Consolidated			$5,991						$2,759						$3,232						$5,748						$2,492						$3,256						4.2		%				10.7		%				(0.7)		%
Unconsolidated (1)			17,915						9,074						8,841						17,489						8,313						9,176						2.4		%				9.2		%				(3.7)		%
Combined			$23,906						$11,833						$12,073						$23,237						$10,805						$12,432						2.9		%				9.5		%				(2.9)		%

_____________________________________________________________

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																		2019																		Variance
			Revenues						Property Operating Expenses						NOI						Revenues						Property Operating Expenses						NOI						Revenues						Property Operating Expenses						NOI
Consolidated			$17,471						$7,943						$9,528						$16,862						$7,403						$9,459						3.6		%				7.3		%				0.7		%
Unconsolidated (1)			47,952						23,451						24,501						46,675						22,440						24,235						2.7		%				4.5		%				1.1		%
Combined			$65,423						$31,394						$34,029						$63,537						$29,843						$33,694						3.0		%				5.2		%				1.0		%

(1) Unconsolidated amounts represent BRT's pro-rata share. See definition of pro-rata under "Non-GAAP Financial Measures and Definitions.".

13

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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

14

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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 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 across our portfolio of properties or at any particular property. Rents at a property may increase for reasons wholly unrelated to property improvements, such as changes in demand for rental units in a particular market or 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 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 - it excludes revenue enhancing projects.
(2) Non-recurring capital expenditures represent our estimate of significant improvements to the common areas, property exteriors, or interior units of the property, and revenue enhancing upgrades.
(3) Replacements are expensed as incurred at the property.
(4) Based on BRT's equity interest.

15

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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%)

16

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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

17

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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)

18

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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)

19

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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.

20

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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

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