BRT 8-K
BRT Apartments Corp. (BRT)
8-K
2025-03-12
For: 2025-03-12
View Original
Added on
April 11, 2026
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): March 12, 2025
(Exact name of Registrant as specified in charter)
| (State or other jurisdiction of incorporation) | (Commission file No.) | (IRS Employer I.D. No.) | ||||||||||||
(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):
240.14d-2(b))
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 | ||||||
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).
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. ☐
Item 2.02. Results of Operations and Financial Condition.
Item 7.01 Regulation FD Disclosure.
Certain of our executive officers may be meeting with analysts and other persons and may provide such persons with copies of, or discuss the information set forth in, the attached material.
Pursuant to, among other things, Regulation FD, we hereby furnish the information contained in the materials attached as Exhibit 99.1 to this Current Report on Form 8-K, which information is incorporated into these Items 2.02 and 7.01 (collectively, the “Item”) by this reference.
The information in this Current Report on Form 8-K under this Item, as well as Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) , or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The furnishing of this Report is not intended to constitute a determination by us that the information is material or that the dissemination of the information is required by Regulation FD or otherwise.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| Supplemental Financial Information. | ||||||||
| 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. | ||||||||
| March 12, 2025 | By: /s/ George Zweier | |||||||
| George Zweier, Vice President | ||||||||
| and Chief Financial Officer | ||||||||
Exhibit 99.2
| SUPPLEMENTAL FINANCIAL INFORMATION FOR THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2024 | ||
March 12, 2025
60 Cutter Mill Rd., Great Neck, NY 11021
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
We consider some of the information set forth herein to contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Such forward-looking statements include, without limitation, statements regarding expected operating performance and results, property acquisition and disposition activity, joint venture activity, development and value add activity and other capital expenditures, and capital raising and financing activity, as well as revenue and expense growth, occupancy, interest rate and other economic expectations. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “forecasts,” “projects,” “assumes,” “will,” “may,” “could,” “should,” “budget,” “target,” “outlook,” “opportunity,” “guidance” and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases, beyond our control, which may cause our actual results, performance or achievements to be materially different from the results of operations, financial conditions or plans expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such forward-looking statements included in this report may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved and investors are cautioned not to place undue reliance on such information.
The following factors, among others, could cause our actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements:
•inability to generate sufficient cash flows due to unfavorable economic and market conditions (e.g., inflation, volatile interest rates and the possibility of a recession), changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws or other factors;
•adverse changes in real estate markets, including, but not limited to, the extent of future demand for multifamily units in our significant markets, barriers of entry into new markets which we may seek to enter in the future, limitations on our ability to increase or collect rental rates, competition, our ability to identify and consummate attractive acquisitions and dispositions on favorable terms, and our ability to reinvest sale proceeds in a manner that generates favorable returns;
•general and local real estate conditions, including any changes in the value of our real estate;
•decreasing rental rates or increasing vacancy rates;
•challenges in acquiring properties (including challenges in buying properties directly without the participation of joint venture partners and the limited number of multi-family property acquisition opportunities available to us), which acquisitions may not be completed or may not produce the cash flows or income expected;
•the competitive environment in which we operate, including competition that could adversely affect our ability to acquire properties and/or limit our ability to lease apartments or increase or maintain rental rates;
•exposure to risks inherent in investments in a single industry and sector;
•the concentration of our multi-family properties in the Southeastern United States and Texas, which makes us more susceptible to adverse developments in those markets;
•increases in expenses over which we have limited control, such as real estate taxes, insurance costs and utilities, due to inflation and other factors;
•impairment in the value of real estate we own;
•failure of property managers to properly manage properties;
•accessibility of debt and equity capital markets;
•disagreements with, or misconduct by, joint venture partners;
•inability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures;
•level and volatility of interest or capitalization rates or capital market conditions;
•extreme weather and natural disasters such as hurricanes, tornadoes and floods;
•lack of or insufficient amounts of insurance to cover, among other things, losses from catastrophes;
•risks associated with acquiring value-add multi-family properties, which involves greater risks than more conservative approaches;
•events giving rise to increases in our current expected credit loss reserve;
•the condition of Fannie Mae or Freddie Mac, which could adversely impact us;
•changes in Federal, state and local governmental laws and regulations, including laws and regulations relating to taxes and real estate and related investments;
•our failure to comply with laws, including those requiring access to our properties by disabled persons, which could result in substantial costs;
•board determinations as to timing and payment of dividends, if any, and our ability or willingness to pay future dividends;
•our ability to satisfy the complex rules required to maintain our qualification as a REIT for federal income tax purposes;
•possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us or a subsidiary owned by us or acquired by us;
•our dependence on information systems and risks associated with breaches of such systems;
•disease outbreaks and other public health events, and measures that are taken by federal, state, and local governmental authorities in response to such outbreaks and events;
•impact of climate change on our properties or operations;
•risks associated with the stock ownership restrictions of the Internal Revenue Code of 1986, as amended (the "Code") for REITs and the stock ownership limit imposed by our charter; and
•the other factors described in the reports we file with the SEC, including those set forth in our Annual Report on Form 10-K under the captions "Item 1. Business," "Item 1A. Risk Factors," and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations".
We undertake 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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BRT Apartments Corp. (NYSE: BRT)
Fourth Quarter and Full Year 2024 and Subsequent Highlights
•Reported results for the fourth quarter of 2024 of net loss of $2.1 million, or $(0.11) per diluted share, Funds from Operations, or FFO, of $0.27 per diluted share and Adjusted Funds from Operations, or AFFO, of $0.37 per diluted share.
•Reported results for 2024 of net loss of $9.8 million, or $(0.52) per diluted share, Funds from Operations, or FFO, of $1.12 per diluted share and Adjusted Funds from Operations, or AFFO, of $1.43 per diluted share.
•Equity in earnings of unconsolidated joint ventures was $658,000 in the fourth quarter of 2024 and $1.6 million for 2024.
•Combined Portfolio NOI decreased 4.6% for the fourth quarter and decreased 0.2% for 2024 compared to the prior year.
•Combined Portfolio NOI, net loss, FFO and AFFO results were in line with the operational environment the Company previously outlined in its 2024 outlook.
•Repurchased 10,286 shares during the fourth quarter at a weighted average price of $17.80, bringing the total shares repurchased in 2024 to 193,529 at a weighted average price of $18.07.
•Maintained revolving credit facility of up to $40.0 million, with $0 outstanding, and maturity in September 2027, which was modified in the third quarter 2024 to reduce the borrowing capacity from $60.0 million to $40.0 million.
•Closed a $27.4 million, seven-year mortgage at an interest rate of 5.22% secured by the Company’s Woodland Trails – LaGrange, Georgia property in the third quarter of 2024.
•Used proceeds from the Woodlands Trails financing to provide $18.3 million in Preferred Equity as part of the investment in “The Reserve at Beaumont Oaks”, in Wilmington, NC, and the Charlestowne Apartments, in Kennesaw, GA, both at a 13% all in rate compounded monthly, with 6.0% current pay and a 7.0% hurdle return for Beaumont Oaks and 6.5% current pay and a 6.5% hurdle return for Charlestowne.
•Declared a dividend of $0.25 per share for the first quarter of 2025.
See the reconciliations provided later in this supplemental of FFO, AFFO and Combined Portfolio NOI, to net income, as calculated in accordance with GAAP, and the definitions of such terms under "Non-GAAP Financial Measures and Definitions."
Full Year 2025 Outlook
•The operational environment in BRT’s Combined Portfolio is expected to be consistent with other Sunbelt-focused operators with new supply muting new and renewal lease rent growth until 2026 as the new supply is absorbed.
•BRT intends to emphasize stable average occupancy within the portfolio until it can achieve a lift in rental rates.
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•Controllable expense growth is expected to grow modestly compared to 2024 and insurance expense is expected to decline.
•The Board of Directors approved an extension of the share repurchase program through December 2026 and increased the value of the shares to be repurchased to $10 million. From January 1, 2025 through February 28, 2025, the Company has purchased 65,018 shares at a weighted average price of $17.49.
•BRT’s balance sheet has no debt maturities until the third quarter of 2025, improved pricing and $40 million availability on its credit facility to deploy.
•The Company expects to pursue additional Preferred Equity financing opportunities, like the Charlestowne Apartments and The Reserve at Beaumont Oaks transactions done in 2024.
•The Company will remain patient on asset growth in the near term but is cautiously optimistic that it may find additional opportunities to deploy its available liquidity for capital situations and/or asset acquisitions in 2025.
•Long-term, the Company continues to believe the Sunbelt offers compelling advantages due to the predominance of pro-business states, along with better population and job growth from migration patterns and business investment.
•With new supply growth expected to moderate in Sunbelt markets in 2025 and 2026, the Company expects a disciplined capital allocation strategy, with a focus on stabilizing occupancy in a challenging leasing environment in 2025 and anticipates better growth in 2026 for new investment opportunities.
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BRT Apartments Corp. (NYSE: BRT)
Financial Highlights
_________________________________________________________________________________________________________
| As of December 31, | |||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||
| Market capitalization (thousands) | $ | 338,657 | $ | 345,439 | |||||||||||||||||||||||||||||||||||||
| Shares outstanding (thousands) | 18,783 | 18,582 | |||||||||||||||||||||||||||||||||||||||
| Closing share price | $ | 18.03 | $ | 18.59 | |||||||||||||||||||||||||||||||||||||
| Quarterly dividend declared per share | $ | 0.25 | $ | 0.25 | |||||||||||||||||||||||||||||||||||||
| Quarter ended December 31, | |||||||||||||||||||||||||||||||||||||||||
| Combined | Consolidated | Unconsolidated | |||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||
Properties owned (1) | 29 | 28 | 21 | 21 | 8 | 7 | |||||||||||||||||||||||||||||||||||
| Units | 7,947 | 7,707 | 5,420 | 5,420 | 2,527 | 2,287 | |||||||||||||||||||||||||||||||||||
| Quarter Average occupancy | 93.6 | % | 93.4 | % | 93.7 | % | 93.5 | % | 93.6 | % | 93.0 | % | |||||||||||||||||||||||||||||
| Quarter Average monthly rental revenue per occupied unit | $ | 1,405 | $ | 1,404 | $ | 1,371 | $ | 1,362 | $ | 1,487 | $ | 1,504 | |||||||||||||||||||||||||||||
_______________________________ (1) The increase in properties owed is due to the inclusion of Stono Oaks, which is in lease-up in 2024 and was in development in 2023. | |||||||||||||||||||||||||||||||||||||||||
| Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||||||||||||||||||||||||||||
| Per share data | 2024 (Unaudited) | 2023 (Unaudited) | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||
| (Loss) earnings per share basic and diluted | $ | (0.11) | $ | (0.11) | $ | (0.52) | $ | 0.16 | |||||||||||||||||||||||||||||||||
| FFO per share of common stock (diluted) (1) | $ | 0.28 | $ | 0.34 | $ | 1.12 | $ | 1.19 | |||||||||||||||||||||||||||||||||
| AFFO per share of common stock (diluted) (1) | $ | 0.37 | $ | 0.38 | $ | 1.43 | $ | 1.52 | |||||||||||||||||||||||||||||||||
| As of December 31, | |||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||
| Debt to Enterprise Value (2) | 66 | % | 65 | % | |||||||||||||||||||||||||||||||||||||
(1) 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."
(2) Enterprise Value is equal to debt plus market capitalization less cash and cash equivalents, including BRT's pro-rata share of cash and cash equivalents at the
unconsolidated Joint Ventures. Cash and cash equivalents excludes restricted cash. Debt is equal to 100% of the debt at the consolidated properties and BRT's
pro-rata share of debt at the unconsolidated joint ventures. See "Non-GAAP Financial Measures and Definitions" for an explanation of "pro-rata share."
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BRT Apartments Corp. (NYSE: BRT)
Components of Net Asset Value
As of December 31, 2024
(all in thousands)
____________________________________________________________________________________________________________________
Net Operating Income (1) | ||||||||||||||||||||
| Consolidated | $ | 51,218 | ||||||||||||||||||
| Unconsolidated (Pro rata) | 11,877 | |||||||||||||||||||
| Total Net Operating Income | $ | 63,095 | ||||||||||||||||||
| OTHER ASSETS | ||||||||||||||||||||
| Cash and Cash Equivalents | $ | 27,856 | ||||||||||||||||||
| Cash and Cash Equivalents - Unconsolidated pro rata | 2,315 | |||||||||||||||||||
| Loans | 17,667 | |||||||||||||||||||
| Restricted Cash | 3,221 | |||||||||||||||||||
| Other Assets | 17,460 | |||||||||||||||||||
| Other Assets - Unconsolidated pro rata | 2,822 | |||||||||||||||||||
| Total Cash and Other Assets | $ | 71,341 | ||||||||||||||||||
| OTHER LIABILITIES | ||||||||||||||||||||
| Accounts Payable and Accrued Liabilities | $ | 24,915 | ||||||||||||||||||
| Accounts Payable and Accrued Liabilities - Unconsolidated pro rata | 2,160 | |||||||||||||||||||
| Total Other Liabilities | $ | 27,075 | ||||||||||||||||||
| DEBT SUMMARY | ||||||||||||||||||||
| Mortgages Payable, net of deferred costs: | ||||||||||||||||||||
| Consolidated | $ | 446,471 | ||||||||||||||||||
| Unconsolidated (Pro rata) | 115,735 | |||||||||||||||||||
| Total Mortgages Payable | $ | 562,206 | ||||||||||||||||||
| Credit Facility | — | |||||||||||||||||||
| Subordinated Notes | 37,163 | |||||||||||||||||||
| Total Debt Outstanding | $ | 599,369 | ||||||||||||||||||
| Common Shares Outstanding | 18,783 | |||||||||||||||||||
_____________________________________________
(1) See the Appendix for a reconciliation of the non-GAAP amounts presented to GAAP amounts
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BRT Apartments Corp. (NYSE: BRT)
Results of Operations
(dollars in thousands except per share data)
_____________________________________________________________________________________________________________________
| Three months Ended December 31, (Unaudited) | Twelve months Ended December 31, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Rental revenue and other revenue from other real estate properties | $ | 23,520 | $ | 23,365 | $ | 94,773 | $ | 93,069 | |||||||||||||||
| Other income | 449 | 143 | 857 | 548 | |||||||||||||||||||
| Total revenues | 23,969 | 23,508 | 95,630 | 93,617 | |||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Real estate operating expenses | 10,943 | 10,256 | 43,555 | 41,821 | |||||||||||||||||||
| Interest expense | 5,828 | 5,584 | 22,596 | 22,161 | |||||||||||||||||||
| General and administrative | 3,819 | 3,513 | 15,595 | 15,433 | |||||||||||||||||||
| Provision for credit loss | 270 | — | 270 | — | |||||||||||||||||||
| Depreciation and amortization | 6,526 | 6,389 | 25,926 | 28,484 | |||||||||||||||||||
| Total expenses | 27,386 | 25,742 | 107,942 | 107,899 | |||||||||||||||||||
| Total revenues less total expenses | (3,417) | (2,234) | (12,312) | (14,282) | |||||||||||||||||||
| Equity in earnings of unconsolidated joint ventures | 658 | 588 | 1,644 | 2,293 | |||||||||||||||||||
| Equity in earnings from sale of unconsolidated joint venture properties | — | — | — | 14,744 | |||||||||||||||||||
| Gain on sale of real estate | 806 | — | 806 | 604 | |||||||||||||||||||
| Casualty loss | — | (323) | — | (323) | |||||||||||||||||||
| Insurance recovery of casualty loss | — | 317 | — | 793 | |||||||||||||||||||
| Gain on insurance recovery | — | — | — | 240 | |||||||||||||||||||
| (Loss) income from continuing operations | (1,953) | (1,652) | (9,862) | 4,069 | |||||||||||||||||||
| Income tax provision (benefit) | 71 | 49 | (226) | 54 | |||||||||||||||||||
| Net (loss) income from continuing operations, net of taxes | (2,024) | (1,701) | (9,636) | 4,015 | |||||||||||||||||||
| Income attributable to non-controlling interests | (46) | (36) | (155) | (142) | |||||||||||||||||||
| Net (loss) income attributable to common stockholders | $ | (2,070) | $ | (1,737) | $ | (9,791) | $ | 3,873 | |||||||||||||||
| Weighted average number of shares of common stock outstanding: | |||||||||||||||||||||||
| Basic | 17,848,134 | 17,608,708 | 17,752,226 | 17,918,270 | |||||||||||||||||||
| Diluted | 17,848,134 | 17,608,708 | 17,752,226 | 17,948,276 | |||||||||||||||||||
| Per share amounts attributable to common stockholders: | |||||||||||||||||||||||
| Basic | $ | (0.11) | $ | (0.11) | $ | (0.52) | $ | 0.16 | |||||||||||||||
| Diluted | $ | (0.11) | $ | (0.11) | $ | (0.52) | $ | 0.16 | |||||||||||||||
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BRT Apartments Corp. (NYSE: BRT)
Operating Results of Unconsolidated Properties
(dollars in thousands)
_____________________________________________________________________________________________________________________
| Three months Ended December 31, (Unaudited) | Twelve months Ended December 31, | |||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| Rental and other revenue | $ | 11,653 | $ | 10,541 | $ | 45,182 | $ | 44,785 | ||||||||||||||||||
| Total revenues | 11,653 | 10,541 | 45,182 | 44,785 | ||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||
| Real estate operating expenses | 5,378 | 4,742 | 21,840 | 20,577 | ||||||||||||||||||||||
| Interest expense | 2,849 | 2,211 | 11,357 | 9,268 | ||||||||||||||||||||||
| Depreciation | 3,159 | 2,570 | 11,873 | 10,403 | ||||||||||||||||||||||
| Total expenses | 11,386 | 9,523 | 45,070 | 40,248 | ||||||||||||||||||||||
| Total revenues less total expenses | 267 | 1,018 | 112 | 4,537 | ||||||||||||||||||||||
| Other equity earnings | 209 | 7 | 235 | 126 | ||||||||||||||||||||||
| Gain on insurance recoveries | — | — | — | 65 | ||||||||||||||||||||||
| Gain on sale of real estate properties | — | — | — | 38,418 | ||||||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | (561) | ||||||||||||||||||||||
| Net income from joint ventures | $ | 476 | $ | 1,025 | $ | 347 | $ | 42,585 | ||||||||||||||||||
| BRT equity in earnings and equity in earnings from sale of unconsolidated joint venture properties | $ | 658 | $ | 588 | $ | 1,644 | $ | 17,037 | ||||||||||||||||||
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BRT Apartments Corp. (NYSE: BRT)
Funds from Operations
(dollars in thousands)
____________________________________________________________________________________________________________________
| Three months ended December 31, | Twelve months Ended December 31, | |||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| GAAP Net (loss) income attributable to common stockholders | $ | (2,070) | $ | (1,737) | $ | (9,791) | $ | 3,873 | ||||||||||||||||||
| Add: depreciation of properties | 6,526 | 6,389 | 25,926 | 28,484 | ||||||||||||||||||||||
| Add: our share of depreciation in unconsolidated joint ventures | 1,426 | 1,307 | 5,545 | 5,292 | ||||||||||||||||||||||
| Add: provision for credit loss | 270 | — | 270 | — | ||||||||||||||||||||||
| Add: casualty loss | — | 323 | — | 323 | ||||||||||||||||||||||
| Deduct: gain on sales of real estate | (806) | — | (806) | (604) | ||||||||||||||||||||||
| Deduct: our share of earnings from sale of unconsolidated joint venture properties | (209) | — | (209) | (14,744) | ||||||||||||||||||||||
| Adjust for non-controlling interests | (4) | (4) | (16) | (16) | ||||||||||||||||||||||
| Funds from operations | $ | 5,133 | $ | 6,278 | $ | 20,919 | $ | 22,608 | ||||||||||||||||||
| Adjustments for: deferred rent concessions and straight-line rent accruals | 99 | 25 | (801) | 93 | ||||||||||||||||||||||
| Adjust for: our share of deferred rent concessions and straight-line rent accruals | (42) | — | (147) | — | ||||||||||||||||||||||
| Add: our share of loss on extinguishment of debt from unconsolidated joint ventures | — | — | — | 212 | ||||||||||||||||||||||
| Add: amortization of restricted stock and RSU expense | 1,256 | 692 | 4,877 | 4,768 | ||||||||||||||||||||||
| Add: amortization of deferred mortgage and debt costs | 284 | 273 | 1,150 | 1,072 | ||||||||||||||||||||||
| Add: our share of deferred mortgage costs from unconsolidated joint venture properties | 30 | 26 | 120 | 106 | ||||||||||||||||||||||
| Add: amortization of fair value adjustment for mortgage debt | 137 | 150 | 558 | 613 | ||||||||||||||||||||||
| Less: insurance recovery of casualty loss | — | (323) | — | (323) | ||||||||||||||||||||||
| Less: gain on insurance recovery | — | — | — | (240) | ||||||||||||||||||||||
| Less: our share of gain on insurance proceeds from unconsolidated joint venture | — | — | — | (30) | ||||||||||||||||||||||
| Adjustments for non-controlling interests | — | (4) | (8) | (15) | ||||||||||||||||||||||
| Adjusted funds from operations | $ | 6,897 | $ | 7,117 | $ | 26,668 | $ | 28,864 | ||||||||||||||||||
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Funds from Operations
____________________________________________________________________________________________________________________
| Three months ended December 31, | Twelve months Ended December 31, | |||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| GAAP Net (loss) income attributable to common stockholders | $ | (0.11) | $ | (0.09) | $ | (0.52) | $ | 0.20 | ||||||||||||||||||
| Add: depreciation of properties | 0.35 | 0.34 | 1.38 | 1.50 | ||||||||||||||||||||||
| Add: our share of depreciation in unconsolidated joint ventures | 0.07 | 0.07 | 0.30 | 0.28 | ||||||||||||||||||||||
| Add: provision for credit loss | 0.02 | — | 0.01 | — | ||||||||||||||||||||||
| Add: casualty loss | — | 0.02 | — | 0.02 | ||||||||||||||||||||||
| Deduct: gain on sales of real estate | (0.04) | — | (0.04) | (0.03) | ||||||||||||||||||||||
| Deduct: our share of earnings from sale of unconsolidated joint venture properties | (0.01) | — | (0.01) | (0.78) | ||||||||||||||||||||||
| Adjustment for non-controlling interests | — | — | — | — | ||||||||||||||||||||||
| Funds from operations per common share - diluted | 0.28 | 0.34 | 1.12 | 1.19 | ||||||||||||||||||||||
| Adjustment for: deferred rent concessions and straight-line rent accruals | 0.01 | — | (0.04) | — | ||||||||||||||||||||||
| Adjustment for: our share of deferred rent concessions and straight-line rent accruals | — | — | — | — | ||||||||||||||||||||||
| Add: our share of loss on extinguishment of debt from unconsolidated joint ventures | — | — | — | 0.01 | ||||||||||||||||||||||
| Add: amortization of restricted stock and RSU expense | 0.05 | 0.04 | 0.25 | 0.25 | ||||||||||||||||||||||
| Add: amortization of deferred mortgage and debt costs | 0.02 | 0.01 | 0.06 | 0.06 | ||||||||||||||||||||||
| Add: our share of amortization of deferred mortgage and debt costs from unconsolidated ventures | — | — | 0.01 | 0.01 | ||||||||||||||||||||||
| Add: amortization of fair value adjustment for mortgage debt | 0.01 | 0.01 | 0.03 | 0.03 | ||||||||||||||||||||||
| Less: insurance recovery of casualty loss | — | (0.02) | — | (0.02) | ||||||||||||||||||||||
| Deduct: gain on insurance recovery | — | — | — | (0.01) | ||||||||||||||||||||||
| Deduct: our share of gain on insurance proceeds from unconsolidated joint ventures | — | — | — | — | ||||||||||||||||||||||
| Adjustment for non-controlling interests | — | — | — | — | ||||||||||||||||||||||
| Adjusted funds from operations per common share - diluted | $ | 0.37 | $ | 0.38 | $ | 1.43 | $ | 1.52 | ||||||||||||||||||
| Diluted shares outstanding for FFO and AFFO | 18,803,114 | 18,560,355 | 18,710,615 | 18,931,026 | ||||||||||||||||||||||
9
BRT Apartments Corp. (NYSE: BRT)
Consolidated Balance Sheets
(amounts in thousands, except per share amounts)
_____________________________________________________________________________________________________________________
| December 31, | ||||||||||||||
| 2024 | 2023 | |||||||||||||
| ASSETS | ||||||||||||||
| Real estate properties, net of accumulated depreciation | $ | 615,915 | $ | 635,836 | ||||||||||
| Investment in unconsolidated joint ventures | 31,344 | 34,242 | ||||||||||||
| Loans, net of deferred fees and allowance for credit loss | 17,667 | — | ||||||||||||
| Cash and cash equivalents | 27,856 | 23,512 | ||||||||||||
| Restricted cash | 3,221 | 632 | ||||||||||||
| Other assets | 17,460 | 15,741 | ||||||||||||
| Total Assets | $ | 713,463 | $ | 709,963 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Liabilities: | ||||||||||||||
| Mortgages payable, net of deferred costs | $ | 446,471 | $ | 422,427 | ||||||||||
| Junior subordinated notes, net of deferred costs | 37,163 | 37,143 | ||||||||||||
| Credit facility | — | — | ||||||||||||
| Accounts payable and accrued liabilities | 24,915 | 21,948 | ||||||||||||
| Total Liabilities | 508,549 | 481,518 | ||||||||||||
| 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; | ||||||||||||||
17,872 and 17,536 shares outstanding | 179 | 175 | ||||||||||||
| Additional paid-in capital | 272,275 | 267,271 | ||||||||||||
| Accumulated deficit | (67,485) | (38,986) | ||||||||||||
| Total BRT Apartments Corp. stockholders’ equity | 204,969 | 228,460 | ||||||||||||
| Non-controlling interests | (55) | (15) | ||||||||||||
| Total Equity | 204,914 | 228,445 | ||||||||||||
| Total Liabilities and Equity | $ | 713,463 | $ | 709,963 | ||||||||||
10
BRT Apartments Corp. (NYSE: BRT)
Preferred Equity Investments
(dollars in thousands)
________________________________________________________________________________________
The Company invested in two separate joint ventures which in turn acquired multifamily properties in the locations identified below. In accordance with GAAP, these investments are treated as loans. These investments are unsecured and are subordinate, including the payment of the returns thereon, to the mortgage debt encumbering the property acquired by the applicable joint venture. Information as to these investments at December 31, 2024 is summarized below (dollars and thousands):
| Location | Investment Date | Annual Return | Current Return | Hurdle Return | Invested Amount | Redemption Date | Deferred fees | Estimated Credit Loss | ||||||||||||||||||||||||||||||||||||||||||
| Wilmington, NC | October 2024 | 13 | % | 6.00 | % | 7.00 | % | $ | 7,000 | November 2031 | $ | 135 | $ | 102 | ||||||||||||||||||||||||||||||||||||
| Kennesaw, GA | November 2024 | 13 | % | 6.50 | % | 6.50 | % | 11,250 | June 2029 | 178 | 168 | |||||||||||||||||||||||||||||||||||||||
| $ | 18,250 | $ | 313 | $ | 270 | |||||||||||||||||||||||||||||||||||||||||||||
The preferred equity investments above provide for a total return of 13%, of which 6.00% to 6.50% is payable monthly, subject to available cashflow, and is accrued when it is required to be paid by the sponsor. The remaining balance which we refer to as the Hurdle Return, is only paid from available cash flow after specified sponsor returns have been met and is only recorded when it is probable that it will be received.
11
BRT Apartments Corp. (NYSE: BRT)
Value-Add Program and Capital Expenditures
________________________________________________________________________________________
| For the Quarter ended December 31, 2024 | ||||||||||||||||||||||||||||||||
| 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 over next 24 months | |||||||||||||||||||||||||||
| 17 | $181,000 | $10,620 | $190 | 22% | 320 | |||||||||||||||||||||||||||
| (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. | ||||||||||||||||||||||||||||||||
| For the twelve months ended December 31, 2024 | |||||||||||||||||
| Capital Expenditures | |||||||||||||||||
| (Includes consolidated and unconsolidated amounts) | |||||||||||||||||
| Gross Expenditures | Less: JV Partner Share | BRT Share of Expenditures (4) | |||||||||||||||
| Estimated Recurring Capital Expenditures (1) | $ | 3,922,000 | $ | 499,000 | $ | 3,423,000 | |||||||||||
| Estimated Non-Recurring Capital Expenditures (2) | 4,775,000 | 688,000 | 4,087,000 | ||||||||||||||
| Total Capital Expenditures | $ | 8,697,000 | $ | 1,187,000 | $ | 7,510,000 | |||||||||||
| Replacements (operating expense) (3) | $ | 2,935,968 | $ | 254,771 | $ | 2,681,197 | |||||||||||
| Estimated Recurring Capital Expenditures and Replacements per unit (7,707 units) | $ | 890 | $ | 98 | $ | 792 | |||||||||||
| (1) Recurring capital expenditures represent our estimate of expenditures incurred at the property to maintain the property's existing operation. | |||||||||||||||||
| (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 pro-rata share. | |||||||||||||||||
12
BRT Apartments Corp. (NYSE: BRT)
Debt Analysis
As of December 31, 2024
(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) | |||||||||||||||||||||||||||
| 2025 | $ | 19,860 | $ | 4,485 | $ | 15,375 | 4 | % | 4.42 | % | ||||||||||||||||||||||
| 2026 | 74,621 | 5,090 | 69,531 | 17 | % | 4.12 | % | |||||||||||||||||||||||||
| 2027 | 46,190 | 3,395 | 42,795 | 10 | % | 3.96 | % | |||||||||||||||||||||||||
| 2028 | 40,697 | 2,746 | 37,951 | 9 | % | 4.47 | % | |||||||||||||||||||||||||
| 2029 | 56,272 | 2,455 | 53,817 | 13 | % | 3.94 | % | |||||||||||||||||||||||||
| Thereafter | 212,841 | 19,575 | 193,266 | 47 | % | 4.10 | % | |||||||||||||||||||||||||
| Total | $ | 450,481 | $ | 37,746 | $ | 412,735 | 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) | |||||||||||||||||||||||||||
| 2025 | $ | 1,842 | $ | 1,842 | — | — | % | — | % | |||||||||||||||||||||||
| 2026 | 25,803 | 1,806 | $ | 23,997 | 22 | % | 4.71 | % | ||||||||||||||||||||||||
| 2027 | 13,026 | 1,472 | 11,554 | 11 | % | 4.15 | % | |||||||||||||||||||||||||
| 2028 | 34,265 | 450 | 33,815 | 31 | % | 4.26 | % | |||||||||||||||||||||||||
| 2029 | 611 | 611 | — | — | % | — | % | |||||||||||||||||||||||||
| Thereafter | 40,594 | 727 | 39,867 | 36 | % | 3.32 | % | |||||||||||||||||||||||||
| Total | $ | 116,141 | $ | 6,908 | $ | 109,233 | 100 | % | ||||||||||||||||||||||||
| Combined (2) | ||||||||||||||||||||||||||||||||
| Year | Total Principal Payments | Scheduled Amortization | Principal Payments Due at Maturity | Percent of Total Principal Payments Due At Maturity | Weighted Average Interest Rate (1) | |||||||||||||||||||||||||||
| 2025 | $ | 21,702 | $ | 6,327 | $ | 15,375 | 3 | % | 4.42 | % | ||||||||||||||||||||||
| 2026 | 100,424 | 6,896 | 93,528 | 18 | % | 4.27 | % | |||||||||||||||||||||||||
| 2027 | 59,216 | 4,867 | 54,349 | 10 | % | 4.00 | % | |||||||||||||||||||||||||
| 2028 | 74,962 | 3,196 | 71,766 | 14 | % | 4.37 | % | |||||||||||||||||||||||||
| 2029 | 56,883 | 3,066 | 53,817 | 10 | % | 3.94 | % | |||||||||||||||||||||||||
| Thereafter | 253,435 | 20,302 | 233,133 | 45 | % | 3.98 | % | |||||||||||||||||||||||||
| Total | $ | 566,622 | $ | 44,654 | $ | 521,968 | 100 | % | ||||||||||||||||||||||||
| Weighted Average Remaining Term to Maturity (2) | 5.65 | yrs | ||||||||||||||||||||||||||||||
| Weighted Average Interest Rate (2) | 4.08 | % | ||||||||||||||||||||||||||||||
| Debt Service Coverage Ratio for the quarter ended December 31, 2024 | 2.09 | (3) | ||||||||||||||||||||||||||||||
| (1) Based on balloon payments at maturity. | ||||||||||||||||||||||||||||||||
| (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 excluding deferred costs of $237,000 | ||||||||||
| Interest Rate | 3 month SOFR + 2.26% (i.e., 6.75% at 12/31/2024); Rate in effect for payment made on January 30, 2025 was 6.85% | ||||||||||
| Maturity | April 30, 2036 | ||||||||||
| Credit Facility (as of December 31, 2024) | |||||||||||
| Maximum Amount Available | Up to $40,000 | ||||||||||
| Amount Outstanding | $0 | ||||||||||
| Interest Rate | 1 month term SOFR + 250 basis points (i.e., 6.96% at 12/31/2024) subject to a floor of 6% | ||||||||||
| Maturity | September 14, 2027 | ||||||||||
13
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Quarter ended December 31, 2024
(dollars in thousands, except monthly rent amounts)
_____________________________________________________________________________________________________________________
| Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units at period end | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Weighted Average Occupancy | Weighted Average Monthly Rent per Occ. Unit (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 600 | $ | 2,291 | $ | 1,400 | $ | 891 | 7.1 | % | 91.4 | % | $ | 1,205 | |||||||||||||||||||||||||||||||||||||||||||
| Georgia | 688 | 2,580 | 1,271 | 1,309 | 10.4 | % | 89.5 | % | 1,232 | |||||||||||||||||||||||||||||||||||||||||||||||
| Florida | 518 | 2,386 | 1,295 | 1,091 | 8.7 | % | 95.5 | % | 1,477 | |||||||||||||||||||||||||||||||||||||||||||||||
| Ohio | 264 | 993 | 528 | 465 | 3.7 | % | 96.1 | % | 1,163 | |||||||||||||||||||||||||||||||||||||||||||||||
| Virginia | 220 | 1,251 | 470 | 781 | 6.2 | % | 97.4 | % | 1,732 | |||||||||||||||||||||||||||||||||||||||||||||||
| North Carolina | 264 | 1,081 | 435 | 646 | 5.1 | % | 96.3 | % | 1,297 | |||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 474 | 2,192 | 1,343 | 849 | 6.8 | % | 93.2 | % | 1,467 | |||||||||||||||||||||||||||||||||||||||||||||||
| Tennessee | 702 | 3,499 | 1,265 | 2,234 | 17.8 | % | 92.5 | % | 1,656 | |||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 740 | 2,801 | 1,275 | 1,526 | 12.1 | % | 94.8 | % | 1,188 | |||||||||||||||||||||||||||||||||||||||||||||||
| Missouri | 174 | 910 | 447 | 463 | 3.7 | % | 94.4 | % | 1,645 | |||||||||||||||||||||||||||||||||||||||||||||||
| Mississippi | 776 | 3,175 | 1,098 | 2,077 | 16.5 | % | 95.2 | % | 1,335 | |||||||||||||||||||||||||||||||||||||||||||||||
| Legacy assets and misc. | — | 361 | 116 | 245 | 1.9 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
| Totals | 5,420 | $ | 23,520 | $ | 10,943 | $ | 12,577 | 100 | % | 93.7 | % | $ | 1,371 | |||||||||||||||||||||||||||||||||||||||||||
Unconsolidated (Pro-Rata Share) (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units at period end | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Weighted Average Occupancy | Weighted Average Rent per Occ. Unit (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 1,103 | $ | 2,549 | $ | 1,246 | $ | 1,303 | 42.0 | % | 91.7 | % | $ | 1,456 | |||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 713 | 1,339 | 503 | 836 | 26.9 | % | 94.5 | % | 1,564 | |||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 271 | 961 | 445 | 516 | 16.6 | % | 95.7 | % | 1,514 | |||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 200 | 621 | 274 | 347 | 11.2 | % | 97.2 | % | 1,221 | |||||||||||||||||||||||||||||||||||||||||||||||
Other and misc. (2) | 240 | 216 | 114 | 102 | 3.3 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2,527 | $ | 5,686 | $ | 2,582 | $ | 3,104 | 100.0 | % | 93.6 | % | $ | 1,476 | ||||||||||||||||||||||||||||||||||||||||||||
_________________________________________________________________________________
(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) Property in lease up
(3) Amount does not reflect concessions
14
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Twelve months ended December 31, 2024
(dollars in thousands, except monthly rent amounts)
____________________________________________________________________________________________________________________
| Consolidated | ||||||||||||||||||||||||||||||||||||||||||||
| Units at period end | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Weighted Average Occupancy | Weighted Average Rent per Occ. Unit (3) | ||||||||||||||||||||||||||||||||||||||
| Texas | 600 | $ | 9,278 | $ | 5,259 | $ | 4,019 | 7.8 | % | 92.5 | % | $ | 1,200 | |||||||||||||||||||||||||||||||
| Georgia | 688 | 10,538 | 5,442 | 5,096 | 9.9 | % | 91.0 | % | 1,238 | |||||||||||||||||||||||||||||||||||
| Florida | 518 | 9,448 | 4,791 | 4,657 | 9.1 | % | 95.0 | % | 1,467 | |||||||||||||||||||||||||||||||||||
| Ohio | 264 | 3,928 | 1,962 | 1,966 | 3.8 | % | 95.2 | % | 1,157 | |||||||||||||||||||||||||||||||||||
| Virginia | 220 | 4,860 | 1,988 | 2,872 | 5.6 | % | 96.7 | % | 1,700 | |||||||||||||||||||||||||||||||||||
| North Carolina | 264 | 4,279 | 1,771 | 2,508 | 4.9 | % | 95.3 | % | 1,286 | |||||||||||||||||||||||||||||||||||
| South Carolina | 474 | 8,811 | 4,907 | 3,904 | 7.6 | % | 94.6 | % | 1,457 | |||||||||||||||||||||||||||||||||||
| Tennessee | 702 | 13,616 | 5,662 | 7,954 | 15.5 | % | 93.5 | % | 1,592 | |||||||||||||||||||||||||||||||||||
| Alabama | 740 | 11,285 | 5,154 | 6,131 | 12.0 | % | 94.5 | % | 1,191 | |||||||||||||||||||||||||||||||||||
| Missouri | 174 | 3,736 | 1,749 | 1,987 | 3.9 | % | 94.9 | % | 1,684 | |||||||||||||||||||||||||||||||||||
| Mississippi | 776 | 12,545 | 4,410 | 8,135 | 15.9 | % | 94.9 | % | 1,315 | |||||||||||||||||||||||||||||||||||
| Legacy assets and misc. | — | 2,449 | 460 | 1,989 | 3.9 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||
| Totals | 5,420 | $ | 94,773 | $ | 43,555 | $ | 51,218 | 100 | % | 94.0 | % | $ | 1,358 | |||||||||||||||||||||||||||||||
| Unconsolidated (Pro-Rata Share)(1) | ||||||||||||||||||||||||||||||||||||||||||||
| Units at period end | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Average Occupancy | Average Rent per Occ. Unit (3) | ||||||||||||||||||||||||||||||||||||||
| Texas | 1,103 | $ | 10,438 | $ | 5,358 | $ | 5,080 | 42.8 | % | 92.4% | $ | 1,497 | ||||||||||||||||||||||||||||||||
| South Carolina | 713 | 5,351 | 1,990 | 3,361 | 28.3 | % | 94.6% | 1,559 | ||||||||||||||||||||||||||||||||||||
| Georgia | 271 | 3,867 | 1,869 | 1,998 | 16.8 | % | 94.7% | 1,529 | ||||||||||||||||||||||||||||||||||||
| Alabama | 200 | 2,410 | 1,130 | 1,280 | 10.8 | % | 97.6% | 1,167 | ||||||||||||||||||||||||||||||||||||
Other and misc. (2) | 240 | 515 | 357 | 158 | 1.3 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||
| Totals | 2,527 | $ | 22,581 | $ | 10,704 | $ | 11,877 | 100 | % | 93.8 | % | $ | 1,490 | |||||||||||||||||||||||||||||||
_________________________________________________________________________________
(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) Property in lease up
(3) Amount does not reflect concessions
15
BRT Apartments Corp. (NYSE: BRT)
Combined Portfolio Metrics (1)
Quarter ended December 31, 2024 and 2023
(dollars in thousands)
____________________________________________________________________________________________________________________
| Three months ended December 31, | |||||||||||||||||
| 2024 | 2023 | % Change | |||||||||||||||
| Combined Revenues | $ | 28,573 | $ | 28,459 | 0.4 | % | |||||||||||
| Combined Operating Expenses | |||||||||||||||||
| Payroll | $ | 2,504 | $ | 2,541 | (1.5) | % | |||||||||||
| Real Estate taxes | 3,156 | 2,917 | 8.2 | % | |||||||||||||
| Management Fees | 807 | 805 | 0.2 | % | |||||||||||||
| Insurance | 1,458 | 1,309 | 11.4 | % | |||||||||||||
| Utilities | 1,849 | 1,704 | 8.5 | % | |||||||||||||
| Repairs and Maintenance | 2,063 | 1,546 | 33.4 | % | |||||||||||||
| Replacements | 568 | 578 | (1.7) | % | |||||||||||||
| Advertising, Leasing and Other | 890 | 1,051 | (15.3) | % | |||||||||||||
| Total Combined Operating Expenses | $ | 13,295 | $ | 12,451 | 6.8 | % | |||||||||||
| Total Combined Operating Income | $ | 15,278 | $ | 16,008 | (4.6) | % | |||||||||||
_______________________________
(1) Please refer to Non-GAAP Financial Measures, Definitions and Reconciliations for definition of Combined Same Store and reconciliation of Net Operating
Income. Combined portfolio refers to the consolidated same store properties, the unconsolidated same store properties presented, on a pro rata share basis, with a total number of 7,707 units (excluding Stono Oaks).
16
BRT Apartments Corp. (NYSE: BRT)
Combined Portfolio Metrics (1)
Year ended December 31, 2024 and 2023
(dollars in thousands)
____________________________________________________________________________________________________________________
| Twelve months Ended December 31, | ||||||||||||||||||||
| 2024 | 2023 | % Change | ||||||||||||||||||
| Combined Revenues | $ | 115,366 | $ | 113,242 | 1.9 | % | ||||||||||||||
| Combined Operating Expenses | ||||||||||||||||||||
| Payroll | $ | 9,887 | $ | 9,901 | (0.1) | % | ||||||||||||||
| Real Estate taxes | 13,707 | 12,954 | 5.8 | % | ||||||||||||||||
| Management Fees | 3,246 | 3,231 | 0.5 | % | ||||||||||||||||
| Insurance | 5,772 | 4,962 | 16.3 | % | ||||||||||||||||
| Utilities | 7,167 | 6,785 | 5.6 | % | ||||||||||||||||
| Repairs and Maintenance | 6,860 | 6,704 | 2.3 | % | ||||||||||||||||
| Replacements | 2,681 | 2,487 | 7.8 | % | ||||||||||||||||
| Advertising, Leasing and Other | 4,122 | 4,158 | (0.9) | % | ||||||||||||||||
| Total Combined Operating Expenses | $ | 53,442 | $ | 51,182 | 4.4 | % | ||||||||||||||
| Total Combined Operating Income | $ | 61,924 | $ | 62,060 | (0.2) | % | ||||||||||||||
_______________________________
(1)Please refer to Non-GAAP Financial Measures, Definitions and Reconciliations for definition of Combined Portfolio and reconciliation of Net Operating Income. Combined portfolio refers to the consolidated same store properties, the unconsolidated same store properties, presented on a pro rata share basis, with a total number of 7,707 units (excluding Stono Oaks)..
17
BRT Apartments Corp. (NYSE: BRT)
Portfolio Table
As of December 31, 2024
___________________________________________________________________________________________
| Property | City | State | Year Built | Year Acquired | Property Age | Units | Q4 2024 Avg. Occupancy | Q4 2024 Avg. Rent per Occupied. Unit | ||||||||||||||||||||||||
| Consolidated Properties - All 100% owned | ||||||||||||||||||||||||||||||||
| Silvana Oaks | North Charleston | SC | 2010 | 2012 | 14 | 208 | 92.8% | $ | 1,568 | |||||||||||||||||||||||
| Avondale Station | Decatur | GA | 1954 | 2012 | 70 | 212 | 90.1% | 1,390 | ||||||||||||||||||||||||
| Newbridge Commons | Columbus | OH | 1999 | 2013 | 25 | 264 | 96.1% | 1,163 | ||||||||||||||||||||||||
| Brixworth at Bridgestreet | Huntsville | AL | 1985 | 2013 | 39 | 208 | 94.7% | 1,046 | ||||||||||||||||||||||||
| Avalon | Pensacola | FL | 2008 | 2014 | 16 | 276 | 95.0% | 1,502 | ||||||||||||||||||||||||
| Crossings of Bellevue | Nashville | TN | 1985 | 2014 | 39 | 300 | 93.8% | 1,448 | ||||||||||||||||||||||||
| Parkway Grande | San Marcos | TX | 2014 | 2015 | 10 | 192 | 91.5% | 1,254 | ||||||||||||||||||||||||
| Woodland Trails | LaGrange | GA | 2010 | 2015 | 14 | 236 | 90.0% | 1,378 | ||||||||||||||||||||||||
| Kilburn Crossing | Fredericksburg | VA | 2005 | 2016 | 19 | 220 | 97.4% | 1,732 | ||||||||||||||||||||||||
| Verandas at Alamo Ranch | San Antonio | TX | 2015 | 2016 | 9 | 288 | 89.3% | 1,160 | ||||||||||||||||||||||||
| Grove at River Place | Macon | GA | 1988 | 2016 | 36 | 240 | 88.5% | 942 | ||||||||||||||||||||||||
| Civic Center 1 | Southaven | MS | 2002 | 2016 | 22 | 392 | 96.3% | 1,312 | ||||||||||||||||||||||||
| Civic Center 2 | Southaven | MS | 2005 | 2016 | 19 | 384 | 94.1% | 1,358 | ||||||||||||||||||||||||
| Vanguard Heights | Creve Coeur | MO | 2016 | 2017 | 8 | 174 | 94.4% | 1,645 | ||||||||||||||||||||||||
| Jackson Square | Tallahassee | FL | 1996 | 2017 | 28 | 242 | 96.1% | 1,450 | ||||||||||||||||||||||||
| Woodland Apartments | Boerne | TX | 2007 | 2017 | 17 | 120 | 96.4% | 1,230 | ||||||||||||||||||||||||
| Magnolia Pointe | Madison | AL | 1991 | 2017 | 33 | 204 | 93.3% | 1,200 | ||||||||||||||||||||||||
| Bell's Bluff | Nashville | TN | 2019 | 2018 | 5 | 402 | 91.5% | 1,815 | ||||||||||||||||||||||||
| Crestmont at Thornblade | Greenville | SC | 1998 | 2018 | 26 | 266 | 93.5% | 1,389 | ||||||||||||||||||||||||
| Somerset at Trussville | Trussville | AL | 2007 | 2019 | 17 | 328 | 95.7% | 1,270 | ||||||||||||||||||||||||
| Abbotts Run | Wilmington | NC | 2001 | 2020 | 23 | 264 | 96.3% | 1,297 | ||||||||||||||||||||||||
| Age Weighted Avg. Age/Total Consolidated | 23 | 5,420 | ||||||||||||||||||||||||||||||
| Properties owned by Unconsolidated Joint Ventures (excluding preferred equity investments) | ||||||||||||||||||||||||||||||||
| % Ownership | ||||||||||||||||||||||||||||||||
| Pointe at Lenox Park | Atlanta | GA | 1989 | 2016 | 35 | 271 | 95.7% | 1,514 | 74.0 | % | ||||||||||||||||||||||
| Gateway Oaks | Forney | TX | 2016 | 2016 | 8 | 313 | 93.9% | 1,367 | 50.0 | % | ||||||||||||||||||||||
| Mercer Crossing | Dallas | TX | 2015 | 2017 | 9 | 509 | 91.0% | 1,625 | 50.0 | % | ||||||||||||||||||||||
| Canalside Lofts | Columbia | SC | 2008 | 2017 | 16 | 374 | 94.0% | 1,455 | 32.0 | % | ||||||||||||||||||||||
| Landings of Carrier Parkway | Grand Prairie | TX | 2001 | 2018 | 23 | 281 | 90.7% | 1,252 | 50.0 | % | ||||||||||||||||||||||
| Canalside Sola | Columbia | SC | 2015 | 2018 | 9 | 339 | 95.0% | 1,684 | 46.2 | % | ||||||||||||||||||||||
| The Village at Lakeside | Auburn | AL | 1988 | 2019 | 36 | 200 | 97.2% | 1,221 | 80.0 | % | ||||||||||||||||||||||
| Weighted Avg. Age/Total Unconsolidated | 17 | 2,287 | ||||||||||||||||||||||||||||||
| Lease-up | ||||||||||||||||||||||||||||||||
| Stono Oaks | Johns Island | SC | 240 | |||||||||||||||||||||||||||||
| Weighted Avg./Total Portfolio | 21 | 7,947 | ||||||||||||||||||||||||||||||
18
BRT Apartments Corp. (NYSE: BRT)
APPENDIX
19
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES AND DEFINITIONS
(dollars in thousands)
________________________________________________________________________________________
Adjusted Funds from Operations (AFFO)
BRT computes AFFO by adjusting FFO for loss on extinguishment of debt, our straight-line rent accruals, restricted stock and RSU compensation expense, fair value adjustment of mortgage debt, gain on insurance recovery, insurance recovery from casualty loss and deferred mortgage and debt costs (including, in each case as applicable, from our share from our unconsolidated joint ventures). Since the NAREIT White Paper does not provide guidelines for computing AFFO, the computation of AFFO may vary from one REIT to another.
Allowance for Credit Losses
The CECL reserve required under ASU 2016-13 “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326)” (“ASU 2016-13”), reflects the Company's estimate as of the balance sheet date of potential credit losses related to its loan portfolio. Changes to the CECL reserve are recognized through a provision for or reversal of current expected credit loss reserve on the Company's consolidated statements of operations. ASU 2016-13 specifies the reserve should be based on relevant information about past events, including historical loss experience, current loan portfolio, market conditions and reasonable and supportable macroeconomic forecasts for the duration of each loan.
Combined Portfolio
Combined portfolio refers to the consolidated same store properties, the unconsolidated same store properties presented on a pro rata share basis, and the other multifamily properties that BRT currently owns presented at 100% ownership for all periods presented.
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.
Funds from Operations (FFO)
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 GAAP), 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 where 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. In computing FFO, we do not add back to net income the amortization of costs in connection with our financing activities or depreciation of non-real estate assets.
Net Operating Income (NOI)
BRT computes NOI by adjusting net income (loss) to (a) add back (1) interest expense, (2) general and administrative expenses, (3) depreciation expense, (4) impairment charges, (5) provision for taxes, (6) loss on extinguishment of debt, (7) equity in loss of unconsolidated joint ventures, (8) casualty loss and (9) the impact of non-controlling interests, and (b) deduct (1) other income, (2) gain on sale of real estate (3) gain on sale of partnership interest, (4) equity in earnings from sale of consolidated joint venture properties, (5) insurance recovery of casualty loss and (6) gain on insurance recoveries.
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.
Same Store
Same store properties refer to stabilized properties (as described below) that we owned and operated for the entirety of periods being compared, except for properties that are under construction, in lease-up, or are undergoing development or redevelopment. We move properties previously excluded from our same store portfolio (because they were under construction, in lease up or are in development or redevelopment) into the same store designation once they have stabilized and such status has been reflected fully in all applicable periods of comparison.
20
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES AND DEFINITIONS
(dollars in thousands)
________________________________________________________________________________________
Stabilized Properties
Newly constructed, lease-up, development and redevelopment properties are deemed stabilized upon the earlier to occur of the first full calendar quarter beginning (a) 12 months after the property is fully completed and put in service and (b) attainment of at least 90% physical occupancy.
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.
21
BRT Apartments Corp. (NYSE: BRT)
Consolidated Same Store Comparisons (1)
Quarters ended December 31, 2024 and 2023
(dollars in thousands, except monthly rent amounts)
_____________________________________________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | 2024 | 2023 | % Change | 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 688 | $ | 2,580 | $ | 2,624 | (1.7) | % | $ | 1,271 | $ | 1,183 | 7.4 | % | $ | 1,309 | $ | 1,441 | (9.2) | % | |||||||||||||||||||||||||||||||||||||||||||
| Florida | 518 | 2,386 | 2,335 | 2.2 | % | 1,295 | 1,183 | 9.5 | % | 1,091 | 1,152 | (5.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 600 | 2,291 | 2,335 | (1.9) | % | 1,400 | 1,205 | 16.2 | % | 891 | 1,130 | (21.2) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Ohio | 264 | 993 | 943 | 5.3 | % | 528 | 380 | 38.9 | % | 465 | 563 | (17.4) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Virginia | 220 | 1,251 | 1,152 | 8.6 | % | 470 | 482 | (2.5) | % | 781 | 670 | 16.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| North Carolina | 264 | 1,081 | 1,049 | 3.1 | % | 435 | 402 | 8.2 | % | 646 | 647 | (0.2) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 474 | 2,192 | 2,177 | 0.7 | % | 1,343 | 1,123 | 19.6 | % | 849 | 1,054 | (19.4) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 740 | 2,801 | 2,787 | 0.5 | % | 1,275 | 1,176 | 8.4 | % | 1,526 | 1,611 | (5.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Missouri | 174 | 910 | 972 | (6.4) | % | 447 | 379 | 17.9 | % | 463 | 593 | (21.9) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Mississippi | 776 | 3,175 | 3,081 | 3.1 | % | 1,098 | 1,043 | 5.3 | % | 2,077 | 2,038 | 1.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Tennessee | 702 | 3,499 | 3,540 | (1.2) | % | 1,265 | 1,588 | (20.3) | % | 2,234 | 1,952 | 14.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Miscellaneous | — | (97) | — | — | — | — | — | (97) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Totals | 5,420 | $ | 23,062 | $ | 22,995 | 0.3 | % | $ | 10,827 | $ | 10,144 | 6.7 | % | $ | 12,235 | $ | 12,851 | (4.8) | % | |||||||||||||||||||||||||||||||||||||||||||
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 89.5 | % | 91.5 | % | (2.2) | % | $ | 1,232 | $ | 1,238 | (0.5) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida | 95.5 | % | 95.7 | % | (0.2) | % | 1,477 | 1,442 | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 93.0 | % | 92.2 | % | 0.9 | % | 1,205 | 1,213 | (0.7) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ohio | 96.1 | % | 94.6 | % | 1.6 | % | 1,163 | 1,135 | 2.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Virginia | 97.4 | % | 95.3 | % | 2.2 | % | 1,732 | 1,632 | 6.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| North Carolina | 96.3 | % | 94.2 | % | 2.2 | % | 1,297 | 1,277 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 93.2 | % | 94.8 | % | (1.7) | % | 1,467 | 1,443 | 1.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 94.7 | % | 93.6 | % | 1.2 | % | 1,188 | 1,195 | (0.6) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Missouri | 94.4 | % | 95.6 | % | (1.3) | % | 1,645 | 1,718 | (4.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mississippi | 95.2 | % | 95.3 | % | (0.1) | % | 1,335 | 1,297 | 2.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tennessee | 92.5 | % | 92.0 | % | 0.5 | % | 1,656 | 1,688 | (1.9) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average | 93.7 | % | 93.6 | % | 0.1 | % | $ | 1,371 | $ | 1,362 | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
__________________________________________________
(1) See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
(2) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI under "Non-GAAP Financial Measures and
Definitions."
22
BRT Apartments Corp. (NYSE: BRT)
Consolidated Same Store Comparisons (1)
Twelve months ended December 31, 2024 and 2023
(dollars in thousands, except monthly rent amounts)
____________________________________________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | 2024 | 2023 | % Change | 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 688 | $ | 10,538 | $ | 10,571 | (0.3) | % | $ | 5,442 | $ | 5,031 | 8.2 | % | $ | 5,096 | $ | 5,540 | (8.0) | % | |||||||||||||||||||||||||||||||||||||||||||
| Florida | 518 | 9,448 | 9,429 | 0.2 | % | 4,791 | 4,560 | 5.1 | % | 4,657 | 4,869 | (4.4) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 600 | 9,278 | 9,231 | 0.5 | % | 5,259 | 5,317 | (1.1) | % | 4,019 | 3,914 | 2.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Ohio | 264 | 3,928 | 3,750 | 4.7 | % | 1,962 | 1,639 | 19.7 | % | 1,966 | 2,111 | (6.9) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Virginia | 220 | 4,860 | 4,586 | 6.0 | % | 1,988 | 1,833 | 8.5 | % | 2,872 | 2,753 | 4.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Tennessee | 702 | 13,616 | 14,088 | (3.4) | % | 5,662 | 6,023 | (6.0) | % | 7,954 | 8,065 | (1.4) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 740 | 11,285 | 11,193 | 0.8 | % | 5,154 | 4,870 | 5.8 | % | 6,131 | 6,323 | (3.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Missouri | 174 | 3,736 | 3,802 | (1.7) | % | 1,749 | 1,682 | 4.0 | % | 1,987 | 2,120 | (6.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Mississippi | 776 | 12,545 | 12,185 | 3.0 | % | 4,410 | 4,251 | 3.7 | % | 8,135 | 7,934 | 2.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| North Carolina | 264 | 4,279 | 4,168 | 2.7 | % | 1,771 | 1,659 | 6.8 | % | 2,508 | 2,509 | 0.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 474 | 8,811 | 8,586 | 2.6 | % | 4,907 | 4,477 | 9.6 | % | 3,904 | 4,109 | (5.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Miscellaneous | — | 855 | — | — | — | — | 0.0 | % | 855 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Totals | 5,420 | $ | 93,179 | $ | 91,589 | 1.7 | % | $ | 43,095 | $ | 41,342 | 4.2 | % | $ | 50,084 | $ | 50,247 | (0.3) | % | |||||||||||||||||||||||||||||||||||||||||||
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 91.0 | % | 93.1 | % | (2.3) | % | $ | 1,238 | $ | 1,222 | 1.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida | 95.0 | % | 95.3 | % | (0.3) | % | 1,467 | 1,451 | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 93.3 | % | 92.3 | % | 1.1 | % | 1,200 | 1,211 | (0.9) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ohio | 95.2 | % | 96.5 | % | (1.3) | % | 1,157 | 1,104 | 4.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Virginia | 96.7 | % | 95.8 | % | 0.9 | % | 1,700 | 1,623 | 4.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tennessee | 93.2 | % | 93.5 | % | (0.3) | % | 1,592 | 1,641 | (3.0) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 95.0 | % | 93.9 | % | 1.2 | % | 1,191 | 1,186 | 0.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Missouri | 94.9 | % | 94.9 | % | 0.0 | % | 1,684 | 1,711 | (1.6) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mississippi | 94.9 | % | 95.4 | % | (0.5) | % | 1,315 | 1,267 | 3.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| North Carolina | 95.2 | % | 94.7 | % | 0.5 | % | 1,286 | 1,251 | 2.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 94.6 | % | 95.2 | % | (0.6) | % | 1,457 | 1,407 | 3.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average | 94.0 | % | 94.2 | % | (0.2) | % | $ | 1,358 | $ | 1,343 | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
________________________________________
(1) See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
(2) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI
under "Non-GAAP Financial Measures and Definitions."
23
BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons (1)
Quarters ended December 31, 2024 and 2023
BRT Pro-rata Share
(dollars in thousands, except monthly rent amounts)
________________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | 2024 | 2023 | % Change | 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 1,103 | $ | 2,549 | $ | 2,652 | (3.9) | % | $ | 1,246 | $ | 1,162 | 7.2 | % | $ | 1,303 | $ | 1,490 | (12.6) | % | |||||||||||||||||||||||||||||||||||||||||||
| Georgia | 271 | 961 | 956 | 0.5 | % | 445 | 432 | 3.0 | % | 515 | 524 | (1.7) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 713 | 1,339 | 1,286 | 4.1 | % | 503 | 445 | 13.0 | % | 836 | 841 | (0.6) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 200 | 621 | 570 | 8.9 | % | 274 | 268 | 2.2 | % | 347 | 302 | 14.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Miscellaneous | — | 41 | — | — | — | — | 0.0 | % | 41 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Totals | 2,287 | $ | 5,511 | $ | 5,464 | 0.9 | % | $ | 2,468 | $ | 2,307 | 7.0 | % | $ | 3,043 | $ | 3,157 | (3.6) | % | |||||||||||||||||||||||||||||||||||||||||||
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 91.7 | % | 91.8 | % | (0.1) | % | $ | 1,456 | $ | 1,551 | (6.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 95.7 | % | 94.8 | % | 0.9 | % | 1,514 | 1,542 | (1.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 94.5 | % | 93.5 | % | 1.1 | % | 1,564 | 1,530 | 2.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 97.2 | % | 96.0 | % | 1.3 | % | 1,221 | 1,117 | 9.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average | 93.5 | % | 93.0 | % | 0.6 | % | $ | 1,476 | $ | 1,504 | (1.9) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
________________________________________
(1) See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
(2) 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."
24
BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons (1)
Twelve months ended December 31, 2024 and 2023
BRT Pro-rata Share
(dollars in thousands, except monthly rent amounts)
_______________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | 2024 | 2023 | % Change | 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 1,103 | $ | 10,438 | $ | 10,488 | (0.5) | % | $ | 5,358 | $ | 5,040 | 6.3 | % | $ | 5,080 | $ | 5,448 | (6.8) | % | |||||||||||||||||||||||||||||||||||||||||||
| Georgia | 271 | 3,867 | 3,813 | 1.4 | % | 1,869 | 1,830 | 2.1 | % | 1,998 | 1,983 | 0.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 713 | 5,351 | 5,114 | 4.6 | % | 1,990 | 1,855 | 7.3 | % | 3,361 | 3,259 | 3.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 200 | 2,410 | 2,238 | 7.7 | % | 1,130 | 1,115 | 1.3 | % | 1,280 | 1,123 | 14.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Miscellaneous | — | 121 | — | — | — | — | #DIV/0! | 121 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Totals | 2,287 | $ | 22,187 | $ | 21,653 | 2.5 | % | $ | 10,347 | $ | 9,840 | 5.2 | % | $ | 11,840 | $ | 11,813 | 0.2 | % | |||||||||||||||||||||||||||||||||||||||||||
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 92.4 | % | 92.3 | % | 0.1 | % | $ | 1,497 | $ | 1,530 | (2.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 94.7 | % | 95.8 | % | (1.1) | % | 1,529 | 1,507 | 1.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 94.6 | % | 94.0 | % | 0.6 | % | 1,559 | 1,488 | 4.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 97.7 | % | 97.5 | % | 0.2 | % | 1,167 | 1,073 | 8.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average | 93.8 | % | 93.7 | % | 0.1 | % | $ | 1,490 | $ | 1,473 | 1.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
________________________________________
(1) See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
(2) 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."
25
BRT Apartments Corp. (NYSE: BRT)
RECONCILIATIONS
(dollars in thousands)
________________________________________________________________________________________
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 December 31, | Twelve months Ended December 31, | ||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| GAAP Net (loss) income attributable to common stockholders | $ | (2,070) | $ | (1,737) | $ | (9,791) | $ | 3,873 | ||||||||||||||||||
| Less: Other Income | (449) | (143) | (857) | (548) | ||||||||||||||||||||||
| Add: Interest expense | 5,828 | 5,584 | 22,596 | 22,161 | ||||||||||||||||||||||
| General and administrative | 3,819 | 3,513 | 15,595 | 15,433 | ||||||||||||||||||||||
| Depreciation and amortization | 6,526 | 6,389 | 25,926 | 28,484 | ||||||||||||||||||||||
| Provision for credit loss | 270 | — | 270 | — | ||||||||||||||||||||||
| Provision for taxes | 71 | 49 | (226) | 54 | ||||||||||||||||||||||
| Less: Gain on sale of real estate | (806) | — | (806) | (604) | ||||||||||||||||||||||
| Casualty loss | — | 323 | — | 323 | ||||||||||||||||||||||
| Adjust for: Equity in (earnings) loss of unconsolidated joint venture properties | (658) | (588) | (1,644) | (2,293) | ||||||||||||||||||||||
| Less: Equity in earnings from sale of unconsolidated joint venture properties | — | — | — | (14,744) | ||||||||||||||||||||||
| Insurance recovery of casualty loss | — | (317) | — | (793) | ||||||||||||||||||||||
| Gain on insurance recovery | — | — | — | (240) | ||||||||||||||||||||||
| Add: Net loss attributable to non-controlling interests | 46 | 36 | 155 | 142 | ||||||||||||||||||||||
| Net Operating Income | $ | 12,577 | $ | 13,109 | $ | 51,218 | $ | 51,248 | ||||||||||||||||||
| Less: Non-same store and non- multi -family Net Operating Income | 342 | 258 | 1,134 | 1,001 | ||||||||||||||||||||||
| Same store Net Operating Income | $ | 12,235 | $ | 12,851 | $ | 50,084 | $ | 50,247 | ||||||||||||||||||
26
BRT Apartments Corp. (NYSE: BRT)
RECONCILIATIONS
(dollars in thousands)
________________________________________________________________________________________
The following tables provides a reconciliation of BRT's Equity in earnings from 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 December 31, | Twelve months Ended December 31, | ||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| BRT equity in earnings from joint ventures | $ | 658 | $ | 588 | $ | 1,644 | $ | 17,037 | ||||||||||||||||||
| Add: Interest expense | 1,229 | 1,131 | 4,923 | 4,738 | ||||||||||||||||||||||
| Depreciation | 1,426 | 1,307 | 5,545 | 5,291 | ||||||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | 212 | ||||||||||||||||||||||
| Impairment of assets | — | — | — | — | ||||||||||||||||||||||
| Less: Gain on sale of real estate | — | — | — | (14,744) | ||||||||||||||||||||||
| Other equity earnings | (209) | (8) | (235) | (127) | ||||||||||||||||||||||
| Insurance recoveries | — | — | — | |||||||||||||||||||||||
| Gain on sale of insurance recoveries | — | — | — | (30) | ||||||||||||||||||||||
| Net Operating Income | $ | 3,104 | $ | 3,018 | $ | 11,877 | $ | 12,377 | ||||||||||||||||||
| Less: Non-same store Net Operating Income | 102 | (139) | 158 | 564 | ||||||||||||||||||||||
| Same store Net Operating Income | $ | 3,002 | $ | 3,157 | $ | 11,719 | $ | 11,813 | ||||||||||||||||||
| Consolidated same store Net Operating Income | $ | 12,235 | $ | 12,851 | $ | 50,084 | $ | 50,247 | ||||||||||||||||||
| Unconsolidated same store Net Operating Income | 3,002 | 3,157 | 11,719 | 11,813 | ||||||||||||||||||||||
| Combined Portfolio Net Operating Income | $ | 15,237 | $ | 16,008 | $ | 61,803 | $ | 62,060 | ||||||||||||||||||
27
BRT Apartments Corp. (NYSE: BRT)
RECONCILIATIONS
(dollars in thousands)
_____________________________________________________________________________________________________________________
The condensed income statements for the unconsolidated properties below, for the three months ended December 31, 2024 and 2023, presents BRT's pro-rata information.
| Three months ended December 31, 2024 | |||||||||||||||||||||||
| Total | Partner Share | BRT Share | |||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Rental and other revenue | $ | 11,653 | $ | 5,967 | $ | 5,686 | |||||||||||||||||
| Total revenues | 11,653 | 5,967 | 5,686 | ||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Real estate operating expenses | 5,378 | 2,796 | 2,582 | ||||||||||||||||||||
| Interest expense | 2,849 | 1,620 | 1,229 | ||||||||||||||||||||
| Depreciation | 3,159 | 1,733 | 1,426 | ||||||||||||||||||||
| Total expenses | 11,386 | 6,149 | 5,237 | ||||||||||||||||||||
| Total revenues less total expenses | 267 | (182) | 449 | ||||||||||||||||||||
| Equity in earnings of joint ventures | 209 | — | 209 | ||||||||||||||||||||
| Net income | $ | 476 | $ | (182) | $ | 658 | (1) | ||||||||||||||||
| Three Months Ended December 31, 2023 | |||||||||||||||||||||||
| Total | Partner Share | BRT Share | |||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Rental and other revenue | $ | 10,541 | $ | 5,096 | $ | 5,445 | |||||||||||||||||
| Total revenues | 10,541 | 5,096 | 5,445 | ||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Real estate operating expenses | 4,742 | 2,315 | 2,427 | ||||||||||||||||||||
| Interest expense | 2,211 | 1,080 | 1,131 | ||||||||||||||||||||
| Depreciation | 2,570 | 1,264 | 1,306 | ||||||||||||||||||||
| Total expenses | 9,523 | 4,659 | 4,864 | ||||||||||||||||||||
| Total revenues less total expenses | 1,018 | 437 | 581 | ||||||||||||||||||||
| Equity in earnings of joint ventures | 7 | — | 7 | ||||||||||||||||||||
| Impairment of assets | — | — | — | ||||||||||||||||||||
| Insurance recoveries | — | — | — | ||||||||||||||||||||
| Net loss | $ | 1,025 | $ | 437 | $ | 588 | (1) | ||||||||||||||||
(1) Reflects BRT's share as determined in accordance with GAAP - not its pro-rata share
28
BRT Apartments Corp. (NYSE: BRT)
RECONCILIATIONS
(dollars in thousands)
_____________________________________________________________________________________________________________________
The condensed income statements below present for the periods indicated a reconciliation of the information that appears in note 8
of BRT's Annual Report on Form 10-K to the BRT pro rata information presented here in this supplemental.
| Twelve months Ended December 31, 2024 | ||||||||||||||||||||
| Total | Partner Share | BRT Share | ||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Rental and other revenue | $ | 45,182 | $ | 22,601 | $ | 22,581 | ||||||||||||||
| Total revenues | 45,182 | 22,601 | 22,581 | |||||||||||||||||
| Expenses: | ||||||||||||||||||||
| Real estate operating expenses | 21,840 | 11,136 | 10,704 | |||||||||||||||||
| Interest expense | 11,357 | 6,434 | 4,923 | |||||||||||||||||
| Depreciation | 11,873 | 6,328 | 5,545 | |||||||||||||||||
| Total expenses | 45,070 | 23,898 | 21,172 | |||||||||||||||||
| Total revenues less total expenses | 112 | (1,297) | 1,409 | |||||||||||||||||
| Equity in earnings of joint ventures | 235 | — | 235 | |||||||||||||||||
| Gain on insurance recoveries | — | — | — | |||||||||||||||||
| Gain on sale of real estate properties | — | — | — | |||||||||||||||||
| Loss on extinguishment of debt | — | — | — | |||||||||||||||||
| Net income | $ | 347 | $ | (1,297) | $ | 1,644 | ||||||||||||||
| Twelve months Ended December 31, 2023 | ||||||||||||||||||||
| Total | Partner Share | BRT Share | ||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Rental and other revenue | $ | 44,785 | $ | 21,706 | $ | 23,079 | ||||||||||||||
| Total revenues | 44,785 | 21,706 | 23,079 | |||||||||||||||||
| Expenses: | ||||||||||||||||||||
| Real estate operating expenses | 20,577 | 9,875 | 10,702 | |||||||||||||||||
| Interest expense | 9,268 | 4,530 | 4,738 | |||||||||||||||||
| Depreciation | 10,403 | 5,113 | 5,290 | |||||||||||||||||
| Total expenses | 40,248 | 19,518 | 20,730 | |||||||||||||||||
| Total revenues less total expenses | 4,537 | 2,188 | 2,349 | |||||||||||||||||
| Equity in earnings of joint ventures | 126 | — | 126 | |||||||||||||||||
| Impairment of assets | — | — | — | |||||||||||||||||
| Insurance recoveries | — | — | — | |||||||||||||||||
| Gain on insurance recoveries | 65 | 35 | 30 | |||||||||||||||||
| Gain on sale of real estate properties | 38,418 | 23,674 | 14,744 | |||||||||||||||||
| Loss on extinguishment of debt | (561) | (349) | (212) | |||||||||||||||||
| Net loss | $ | 42,585 | $ | 25,548 | $ | 17,037 | ||||||||||||||
29
BRT Apartments Corp. (NYSE: BRT)
Balance Sheet of Unconsolidated Joint Ventures
(dollars in thousands)
_____________________________________________________________________________________________________________________
The condensed balance sheet below at December 31, 2024, represent a reconciliation of the information that appears in note 8 of BRT's Annual Report on Form 10-K to the BRT pro rata information presented here in the supplemental. The Company held interests in unconsolidated joint ventures that own eight multi-family properties (the "Unconsolidated Properties"). The condensed balance sheet below presents information regarding such properties (dollars in thousands):
| December 31, 2024 | ||||||||||||||||||||
| TOTAL | BRT Share | Partner Share | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Real estate properties, net of accumulated depreciation | $ | 318,594 | $ | 143,722 | $ | 174,872 | ||||||||||||||
| Cash and cash equivalents | 5,549 | 2,315 | 3,234 | |||||||||||||||||
| Other assets | 5,567 | 2,822 | 2,745 | |||||||||||||||||
| Total Assets | $ | 329,710 | $ | 148,859 | $ | 180,851 | ||||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Mortgages payable, net of deferred costs | 251,112 | 115,735 | 135,377 | |||||||||||||||||
| Accounts payable and accrued liabilities | 5,148 | 2,160 | 2,988 | |||||||||||||||||
| Total Liabilities | 256,260 | 117,895 | 138,365 | |||||||||||||||||
| Commitments and contingencies | ||||||||||||||||||||
| Equity: | ||||||||||||||||||||
| Total unconsolidated joint venture equity | 73,450 | 30,964 | 42,486 | |||||||||||||||||
| Total Liabilities and Equity | $ | 329,710 | $ | 148,859 | $ | 180,851 | ||||||||||||||
30