8-K
BRT Apartments Corp. (BRT)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 6, 2023
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.
Item 2.02. Results of Operations and Financial Condition.
On November 6, 2023, we issued a press release announcing our results of operations for the three months ended September 30, 2023. 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, 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.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release dated November 6, 2023 |
| 99.2 | Supplemental Financial Information dated November 6, 2023 |
| 101 | Cover Page Interactive Data File - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BRT APARTMENTS CORP. | |
|---|---|
| November 6, 2023 | /s/ George Zweier |
| George Zweier, Vice President | |
| and Chief Financial Officer |
Document
BRT APARTMENTS CORP. REPORTS THIRD QUARTER 2023 RESULTS
– Affirms Full Year 2023 Guidance –
Great Neck, New York – November 6, 2023 – BRT APARTMENTS CORP. (NYSE: BRT), a real estate investment trust that owns, operates, and, to a lesser extent, holds interests in joint ventures that own multi-family properties, today reported results for the third quarter ended September 30, 2023.
Highlights
•Reported results for the third quarter of 2023 of net loss of $1.5 million, or $(0.08) per diluted share, Funds from Operations, or FFO, of $0.31 per diluted share and Adjusted Funds from Operations, or AFFO, of $0.41 per diluted share.
•Equity in earnings of unconsolidated joint ventures was $426,000 in the third quarter of 2023 and $135,000 for the corresponding 2022 quarter.
•Combined Portfolio NOI decreased 0.4% for the third quarter when compared with the prior-year period.
•Repurchased 264,165 shares and 98,014 shares during the third quarter and after the quarter, respectively, at a weighted average price of $18.33. The Company currently has $4.3 million remaining under its current share repurchase authorization.
•Affirmed full year 2023 guidance and accompanying assumptions previously issued on March 14, 2023.
See the reconciliations provided later in this release 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."
Jeffrey A. Gould, President and Chief Executive Officer stated, “The portfolio continues to perform well despite an industry-wide inflationary headwind from non-controllable expenses. Occupancy has been stable in 2023, we have generated solid combined revenue growth on a year-over-year and sequential basis due to increases in rental rates. We are focused on taking care of this portfolio and ensuring that we make the right decisions. The year-over-year improvement in FFO and AFFO per share reflects the stability in the portfolio as well as our strategic capital allocation. While we have remained patient on asset acquisitions in this current environment, we repurchased 671,000 of our shares for an investment of $12.5 million since re-initiating share repurchases in mid-May. With no debt maturities until 2025, substantial liquidity and full availability on our credit facility, we can be opportunistic over the next 12 months with more share repurchases, asset acquisitions and/or rescue capital situations with smaller owners and developers.”
Third Quarter Financial and Operating Results
•Net loss attributable to common stockholders for the quarter ended September 30, 2023 was $1.5 million, or $(0.08) per diluted share, compared to net income attributable to common stockholders of $7.1 million, or $0.37 per diluted share, for the corresponding 2022 quarter. The prior-year period included BRT’s $11.5 million (or $0.61 per diluted share) share of a gain from the sale of a property owned by an unconsolidated subsidiary.
•FFO was $5.7 million, or $0.31 per diluted share, in the current quarter, compared to $5.4 million, or $0.29 per diluted share, in the corresponding 2022 quarter, primarily due to a reduction in early extinguishment of debt and an increase in other income, offset by a decline in operating margins primarily from the sale of properties by unconsolidated joint ventures in the prior-year period.
•AFFO was $7.7 million, or $0.41 per diluted share, in the current quarter, compared to AFFO of $7.2 million, or $0.38 per diluted share, in the corresponding 2022 quarter, primarily due to the decrease in the income tax provision and the increase in other income and insurance recovery.
•Equity in earnings of unconsolidated joint ventures for the current quarter was $426,000 compared to $135,000 in the corresponding quarter of the prior year.
•Combined Portfolio NOI in the current quarter decreased by 0.4% to $15.6 million; the Company estimates that two properties (Verandas at Alamo Ranch in San Antonio, TX and Bell’s Bluff in Nashville, TN) accounted for headwinds totaling approximately 200 basis points in the third quarter Combined Portfolio NOI results.
•Diluted per share net income, FFO and AFFO during the quarter ended September 30, 2023 reflect the approximate 124,000 decrease in weighted average shares of common stock outstanding, primarily due to the 573,318 shares of common stock repurchased during the second and third quarters of 2023, partially offset by stock issuances pursuant to the Company’s at-the-market offering, equity incentive and dividend reinvestment programs during 2022 and 2023.
•For leases signed during the third quarter in the Combined Portfolio, the Company experienced a 4.7% increase on renewal leases, a 2.0% increase on new leases and a 3.5% increase on a blended basis compared with the prior lease. The rent-to-income ratio for all new leases signed in the third quarter is 23%. For leases signed during the month of October 2023, the Company experienced a 5.5% increase on renewals, a 0.7% decrease on new leases and a 2.7% increase on a blended basis compared with the prior lease.
Debt Metrics and Liquidity
At September 30, 2023, BRT’s available liquidity was approximately $88.1 million, comprised of $28.1 million of cash and cash equivalents and $60.0 million available under its credit facility.
At November 1, 2023, BRT’s available liquidity was approximately $81.7 million, including $21.7 million of cash and cash equivalents and up to $60.0 million available under its credit facility. At November 1, 2023, the interest rate on the facility was 7.82%.
Guidance for Full Year 2023
The Company affirmed its full year 2023 guidance and accompanying assumptions previously issued on March 14, 2023.
Conference Call and Webcast Information
The Company will host a conference call and webcast to review its results and 2023 outlook with investors and other interested parties at 9:00 a.m. ET on Tuesday, November 7, 2023. To participate in the conference call, callers from the United States and Canada should dial 1-888-349-0092, and international callers should dial 1-412-902-4235, ten minutes prior to the scheduled call time. The webcast may also be accessed live by visiting the Company’s investor relations website under the “webcast” tab.
A replay of the conference call will be available after 12:00 p.m. ET on Tuesday, November 7, 2023 through 11:59 p.m. ET on Tuesday, November 14, 2023. To access the replay, listeners may use 1-844-512-2921 (domestic) or 1-412-317-6671 (international). The passcode for the replay is 10183267.
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 investor relations website under the caption “Financials – Quarterly Results.” When available, the Company will post a transcript of its quarterly earnings call to the Quarterly Results page.
Non-GAAP Financial Measures
BRT discloses FFO, AFFO, NOI and Combined Portfolio NOI 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 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 its share of its 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.
BRT computes 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 earnings (loss) of unconsolidated joint ventures and equity in earnings from the sale of unconsolidated joint venture, (6) provision for taxes, (7) the impact of non-controlling interests, and (b) deduct (1) other income, (2) gain on sale of real estate, (3) insurance recovery of casualty loss, and (4) gain on insurance recoveries related to casualty loss.
BRT defines “Combined Portfolio” as 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. The Combined Portfolio includes 28 properties totaling 7,707 units for the third quarter ended September 30, 2023.
BRT defines “blended rate” as the average of the percentage change in effective rent of lease renewals and new leases on a combined basis.
The pro rata share reflects BRT’s percentage equity interest in the applicable subsidiary. BRT uses pro rata share to help provide a better understanding of the impact of its unconsolidated joint ventures on its operations. However, the use of pro rata information has limitations. Among other things, as a result of the allocation/distribution provisions of the agreements governing the unconsolidated joint ventures, BRT’s share of the gain/loss with respect to such venture may be different than (and generally less than that) implied by its percentage equity interest therein. Further, the use of pro rata share is not representative of its operations and accounts as presented in accordance with GAAP.
The accounts and results for remaining properties in which the partner interest was purchased by BRT had previously been reflected in our unconsolidated results for the entirety of the periods being presented. As a result, in order to help ensure the comparability of our Combined Portfolio NOI for the periods presented, we are including 100% of the NOI of these properties for the periods prior to their acquisition of the partners’ interests.
BRT believes that FFO, AFFO, NOI and Combined Portfolio NOI 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, AFFO and NOI to be useful in evaluating property acquisitions and dispositions. BRT views Combined Portfolio 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, dispositions or partner buyouts during the periods.
FFO, AFFO, NOI and Combined Portfolio NOI do not represent net income or cash flows from operations as defined by GAAP. FFO, AFFO, NOI and Combined Portfolio NOI should not be considered to be an alternative to net income as a reliable measure of BRT’s operating performance; nor should FFO, AFFO, NOI and Combined Portfolio NOI be considered an alternative to cash flows from operating, investing or financing activities (as defined by GAAP) as measures of liquidity. Further, because there is no industry standard definition of NOI and practice is divergent across the industry, the computation of NOI may from one REIT to another.
Forward Looking Information
BRT considers 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 are 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. 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: the forfeiture of BRT’s deposit with respect to the purchase of a multi-family property in Richmond, VA; 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; 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, due to, among other things, the level and volatility of interest 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; 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".
BRT undertakes no obligation to update or revise the information herein, whether as a result of new information, future events or circumstances, or otherwise.
Additional Information
BRT is a real estate investment trust that owns, operates and, to a lesser extent, holds interests in joint ventures that own multi-family properties. As of September 30, 2023, BRT owns or has interests in 28 multi-family properties with 7,707 units in 11 states. For additional information on BRT’s operations, activities and properties, please visit its website at www.brtapartments.com.
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, 2023, and the supplemental disclosures regarding the quarter on the investor relations section of the Company’s website at: https://brtapartments.com/investor-relations. The Form 10-Q can also be linked through the “Investor Relations” section of BRT’s website.
Contact:
BRT APARTMENTS CORP.
60 Cutter Mill Road
Suite 303
Great Neck, New York 11021
Telephone: (516) 466-3100
Email: investors@BRTapartments.com
www.BRTapartments.com
BRT APARTMENTS CORP. AND SUBSIDIARIES
CONDENSED BALANCE SHEETS
(Dollars in thousands)
| September 30, 2023 | December 31, 2022 | |||
|---|---|---|---|---|
| (unaudited) | (audited) | |||
| ASSETS | ||||
| Real estate properties, net of accumulated depreciation | $ | 639,989 | $ | 651,603 |
| Investments in unconsolidated joint ventures | 34,501 | 42,576 | ||
| Cash and cash equivalents | 28,117 | 20,281 | ||
| Restricted cash | 769 | 872 | ||
| Other assets | 17,766 | 16,786 | ||
| Total assets | $ | 721,142 | $ | 732,118 |
| LIABILITIES AND EQUITY | ||||
| Mortgages payable, net of deferred costs | $ | 422,935 | $ | 403,792 |
| Junior subordinated notes, net of deferred costs | 37,138 | 37,123 | ||
| Credit facility, net of deferred costs | — | 18,502 | ||
| Accounts payable and accrued liabilities | 24,272 | 22,631 | ||
| Total Liabilities | 484,345 | 482,048 | ||
| Total BRT Apartments Corp. stockholders’ equity | 236,788 | 250,088 | ||
| Non-controlling interests | 9 | (18) | ||
| Total Equity | 236,797 | 250,070 | ||
| Total Liabilities and Equity | $ | 721,142 | $ | 732,118 |
BRT APARTMENTS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share data)
| Three Months Ended<br>September 30, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Revenues: | ||||
| Rental and other revenues from real estate properties | $ | 23,510 | $ | 21,691 |
| Other income | 342 | 6 | ||
| Total revenues | 23,852 | 21,697 | ||
| Expenses: | ||||
| Real estate operating expenses | 10,583 | 9,195 | ||
| Interest expense | 5,581 | 5,061 | ||
| General and administrative | 4,017 | 3,673 | ||
| Depreciation and amortization | 6,544 | 8,165 | ||
| Total expenses | 26,725 | 26,094 | ||
| Total revenue less total expenses | (2,873) | (4,397) | ||
| Equity in earnings of unconsolidated joint ventures | 426 | 135 | ||
| Equity in earnings from sale of unconsolidated joint ventures properties | — | 11,472 | ||
| Gain on sale of real estate | 604 | — | ||
| Insurance recovery of casualty loss | 261 | — | ||
| Gain on insurance recovery | — | 62 | ||
| (Loss) income from continuing operations | (1,582) | 7,272 | ||
| Income tax (benefit) provision | (122) | 178 | ||
| (Loss) income from continuing operations, net of taxes | (1,460) | 7,094 | ||
| Net income attributable to non-controlling interest | (34) | (35) | ||
| Net (loss) income attributable to common stockholders | $ | (1,494) | $ | 7,059 |
| Per share amounts attributable to common stockholders: | ||||
| Basic | $ | (0.08) | $ | 0.37 |
| Diluted | $ | (0.08) | $ | 0.37 |
| Funds from operations - Note 1 | $ | 5,749 | $ | 5,405 |
| Funds from operations per common share - diluted - Note 2 | $ | 0.31 | $ | 0.29 |
| Adjusted funds from operations - Note 1 | $ | 7,692 | $ | 7,168 |
| Adjusted funds from operations per common share - diluted -Note 2 | $ | 0.41 | $ | 0.38 |
| Weighted average number of shares of common stock outstanding: | ||||
| Basic | 17,851,715 | 17,928,197 | ||
| Diluted | 17,851,715 | 17,994,457 |
The tables below provides a reconciliation of net loss determined in accordance with GAAP to FFO and AFFO on a dollar and per share basis for each of the indicated periods (dollars in thousands, except per share amounts):
| Three Months Ended September 30, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Note 1: | ||||
| Funds from operations is summarized in the following table: | ||||
| GAAP Net (loss) income attributable to common stockholders | $ | (1,494) | $ | 7,059 |
| Add: depreciation and amortization of properties | 6,544 | 8,165 | ||
| Add: our share of depreciation in unconsolidated joint venture<br> properties | 1,307 | 1,657 | ||
| Deduct: our share of equity in earnings from sale of unconsolidated<br> joint venture properties | — | (11,472) | ||
| Deduct: gain on sale of real estate | (604) | — | ||
| Adjustments for non-controlling interests | (4) | (4) | ||
| NAREIT Funds from operations attributable to common stockholders | 5,749 | 5,405 | ||
| Adjustments for: straight-line rent accruals | 24 | 6 | ||
| Add: our share of loss on extinguishment of debt from unconsolidated<br> joint venture properties | — | 388 | ||
| Add: amortization of restricted stock and RSU expense | 1,473 | 1,208 | ||
| Add: amortization of deferred mortgage and debt costs | 272 | 191 | ||
| Add: our share of deferred mortgage costs from unconsolidated joint<br> venture properties | 26 | 33 | ||
| Add: amortization of fair value adjustment for mortgage debt | 152 | — | ||
| Less: gain on insurance recoveries | — | (62) | ||
| Adjustments for non-controlling interests | (4) | (1) | ||
| Adjusted funds from operations attributable to common stockholders | $ | 7,692 | $ | 7,168 |
| Three Months Ended September 30, | ||||
| --- | --- | --- | --- | --- |
| 2023 | 2022 | |||
| Note 2: | ||||
| Net (loss) income attributable to common stockholders | $ | (0.08) | $ | 0.37 |
| Add: depreciation and amortization of properties | 0.35 | 0.44 | ||
| Add: our share of depreciation in unconsolidated joint venture<br> properties | 0.07 | 0.09 | ||
| Deduct: our share of equity in earnings from sale of unconsolidated<br> joint venture properties | (0.03) | (0.61) | ||
| Deduct: gain on sale of real estate | — | — | ||
| Adjustment for non-controlling interests | — | — | ||
| NAREIT Funds from operations per diluted common share | 0.31 | 0.29 | ||
| Adjustments for: straight line rent accruals | — | — | ||
| Add: our share of loss on extinguishment of debt from unconsolidated<br> joint venture properties | — | 0.02 | ||
| Add: amortization of restricted stock and RSU expense | 0.08 | 0.06 | ||
| Add: amortization of deferred mortgage and debt costs | 0.01 | 0.01 | ||
| Add: our share of deferred mortgage and debt costs from <br> unconsolidated joint venture properties | — | — | ||
| Add: amortization of fair value adjustment for mortgage debt | 0.01 | — | ||
| Less: gain on insurance recoveries | — | — | ||
| Adjustments for non-controlling interests | — | — | ||
| Adjusted funds from operations per diluted common share | $ | 0.41 | $ | 0.38 |
| Diluted shares outstanding for FFO and AFFO | 18,804,874 | 18,928,648 |
BRT APARTMENTS CORP. AND SUBSIDIARIES
RECONCILIATION OF NOI TO NET INCOME
(Unaudited)
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:
| Three Months Ended September 30, | ||||
|---|---|---|---|---|
| Consolidated | 2023 | 2022 | ||
| GAAP Net (loss) income attributable to common stockholders | $ | (1,494) | $ | 7,059 |
| Less: Other Income | (342) | (6) | ||
| Add: Interest expense | 5,581 | 5,061 | ||
| General and administrative | 4,017 | 3,673 | ||
| Depreciation and amortization | 6,544 | 8,165 | ||
| Provision for taxes | (122) | 178 | ||
| Less: Gain on sale of real estate | (604) | — | ||
| Equity in earnings from sale of unconsolidated joint venture<br> properties | — | (11,472) | ||
| Insurance recovery | (261) | — | ||
| Gain on insurance recoveries | — | (62) | ||
| Adjust for: Equity in (earnings) loss of unconsolidated joint venture<br> properties | (426) | (135) | ||
| Add: Net income attributable to non-controlling interests | 34 | 35 | ||
| Net Operating Income | $ | 12,927 | $ | 12,496 |
| Less: Non-same store Net Operating Income | 4,089 | 3,253 | ||
| Same store Net Operating Income | $ | 8,838 | $ | 9,243 |
BRT APARTMENTS CORP. AND SUBSIDIARIES
RECONCILIATION OF NOI AT UNCONSOLIDATED SUBSIDIARIES
(Unaudited)
(Dollars in thousands, except per share data)
The following tables provides a reconciliation of NOI to equity in loss of unconsolidated joint ventures as computed in accordance with GAAP for the periods presented for BRT's pro rata share of NOI at its unconsolidated subsidiaries. Also presented is the combined same store NOI for Consolidated and Unconsolidated subsidiaries:
| Three Months Ended September 30, | ||||
|---|---|---|---|---|
| Unconsolidated | 2023 | 2022 | ||
| BRT's equity in earnings from sale of unconsolidated joint venture properties and equity in loss of joint ventures | $ | 426 | $ | 11,607 |
| Add: Interest expense | 1,134 | 1,542 | ||
| Depreciation | 1,303 | 1,657 | ||
| Loss on extinguishment of debt | — | 388 | ||
| Less: Gain on sale of real estate | — | (11,472) | ||
| Equity in earnings of joint ventures | (3) | (12) | ||
| Net Operating Income | $ | 2,860 | $ | 3,710 |
| Less: Non-same store Net Operating Income | $ | — | $ | 823 |
| Same store Net Operating Income | $ | 2,860 | $ | 2,887 |
| Consolidated same store Net Operating Income | $ | 8,838 | $ | 9,243 |
| Unconsolidated same store Net Operating Income | 2,860 | 2,887 | ||
| Buyout same store Net Operating Income | 3,870 | 3,516 | ||
| Combined same store Net Operating Income | $ | 15,568 | $ | 15,646 |
BRT APARTMENTS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share data)
The condensed income statements below present, for the periods indicated, a reconciliation of the information that appears in note 8 of BRT's Quarterly report on Form 10-Q to BRT's pro rata share of the operations of its unconsolidated subsidiaries:
| Three Months Ended September 30, 2023 | ||||||
|---|---|---|---|---|---|---|
| Total | BRT's Pro-Rata Share | Partner Share | ||||
| Revenues: | ||||||
| Rental and other revenue | $ | 10,636 | $ | 5,486 | $ | 5,150 |
| Total revenues | $ | 10,636 | $ | 5,486 | $ | 5,150 |
| Expenses: | ||||||
| Real estate operating expenses | 5,023 | 2,626 | 2,397 | |||
| Interest expense | 2,212 | 1,134 | 1,078 | |||
| Depreciation | 2,568 | 1,303 | 1,265 | |||
| Total expenses | 9,803 | 5,063 | 4,740 | |||
| Total revenues less total expenses | 833 | 423 | 410 | |||
| Equity in earnings of joint ventures | 3 | 3 | — | |||
| Net loss (income) | $ | 836 | $ | 426 | $ | 410 |
________________
(1) Reflects BRT's share as determined in accordance with GAAP - not its pro-rata share.
| Three Months Ended September 30, 2022 | ||||||
|---|---|---|---|---|---|---|
| Total | BRT's Pro-Rata Share | Partner Share | ||||
| Revenues: | ||||||
| Rental and other revenue | $ | 13,502 | $ | 7,314 | $ | 6,188 |
| Total revenues | $ | 13,502 | $ | 7,314 | $ | 6,188 |
| Expenses: | ||||||
| Real estate operating expenses | 6,512 | 3,604 | 2,908 | |||
| Interest expense | 2,843 | 1,542 | 1,301 | |||
| Depreciation | 3,113 | 1,657 | 1,456 | |||
| Total expenses | 12,468 | 6,803 | 5,665 | |||
| Total revenues less total expenses | 1,034 | 511 | 523 | |||
| Equity in earnings of joint ventures | 12 | 12 | — | |||
| Gain on sale of real estate | 16,937 | 11,472 | 5,465 | |||
| Loss on extinguishment of debt | (573) | (388) | (185) | |||
| Net loss | $ | 17,410 | $ | 11,607 | $ | 5,803 |
________________
(1) Reflects BRT's share as determined in accordance with GAAP - not its pro-rata share.
12
Document
Exhibit 99.2
| SUPPLEMENTAL FINANCIAL<br>INFORMATION FOR THREE AND NINE MONTHS ENDED<br>SEPTEMBER 30, 2023 |
|---|
November 6, 2023
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;
•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, due to, among other things, the level and volatility of interest 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;
•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.
| Table of Contents | Page Number |
|---|---|
| Financial Highlights | 1 |
| 2023 Guidance | 2 |
| Components of Net Asset Value | 3 |
| Operating Results | 4 |
| Operating Results of Unconsolidated Properties | 5 |
| Funds From Operations and Adjusted Funds From Operations | 6 |
| Consolidated Balance Sheets | 8 |
| Contracted Acquisition and Disposition | 9 |
| Value-Add Program and Capital Expenditures | 10 |
| Debt Analysis | 11 |
| Portfolio Data by State | 12 |
| Combined Portfolio Metrics | 14 |
| Portfolio Table | 16 |
| Appendix | 17 |
| Non-GAAP Financial Measure and Definitions | 18 |
| Consolidated Same Store Comparison | 19 |
| Unconsolidated Same Store Comparison | 21 |
| Buyout NOI by State | 23 |
| Reconciliations | 25 |
| Balance Sheets of Unconsolidated Joint Venture Entities | 31 |
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Financial Highlights
_________________________________________________________________________________________________________
| As at September 30, | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | |||||||||||||||||
| Market capitalization (thousands) | $ | 321,947 | $ | 384,001 | ||||||||||||||
| Shares outstanding (thousands) | 18,642 | 18,907 | ||||||||||||||||
| Closing share price | $ | 17.27 | $ | 20.31 | ||||||||||||||
| Quarterly dividend declared per share | $ | 0.25 | $ | 0.25 | ||||||||||||||
| Quarter ended September 30, | ||||||||||||||||||
| Combined | Consolidated | Unconsolidated | ||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Properties owned (a) | 28 | 29 | 21 | 21 | 7 | 8 | ||||||||||||
| Units (a) | 7,707 | 8,201 | 5,420 | 5,420 | 2,287 | 2,781 | ||||||||||||
| Average occupancy (a) | 94.4 | % | 96.2 | % | 94.4 | % | 96.2 | % | 94.4 | % | 96.0 | % | ||||||
| Average monthly rental revenue per occupied unit | $ | 1,390 | $ | 1,301 | $ | 1,352 | $ | 1,291 | $ | 1,480 | $ | 1,316 | ||||||
| ____________________________ | ||||||||||||||||||
| (a) Excludes a planned 240-unit development project | ||||||||||||||||||
| Quarter ended September 30, | ||||||||||||||||||
| Per share data | 2023<br>(Unaudited) | 2022<br>(Unaudited) | ||||||||||||||||
| Earnings per share, basic | $ | (0.08) | $ | 0.37 | ||||||||||||||
| Earnings per share, diluted | $ | (0.08) | $ | 0.37 | ||||||||||||||
| FFO per share of common stock (diluted) (1) | $ | 0.31 | $ | 0.29 | ||||||||||||||
| AFFO per share of common stock (diluted) (1) | $ | 0.41 | $ | 0.38 | ||||||||||||||
| As at September 30, | ||||||||||||||||||
| 2023 | 2022 | |||||||||||||||||
| Debt to Enterprise Value (2) | 67 | % | 62 | % |
=
(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."
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
2023 Guidance
_____________________________________________________________________________________________________________________
| 2023 Combined Portfolio Guidance Assumptions (1) | Low End | Midpoint | High End |
|---|---|---|---|
| Property revenue growth | 5.2% | 5.7% | 6.2% |
| Controllable operating expense growth | 7.0% | 5.6% | 4.2% |
| Real estate tax and insurance expense growth (2) | 18.3% | 17.7% | 17.1% |
| Total operating expense growth | 10.3% | 9.2% | 8.2% |
| Property NOI growth | 1.4% | 3.1% | 4.7% |
| Capital Expenditures | |||
| Recurring | $5.7 Million | $5.5 Million | $5.2 Million |
| Value add | $3.6 Million | $3.5 Million | $3.3 Million |
| Non- recurring | $1.8 Million | $1.7 Million | $1.6 Million |
| 2023 Full Year EPS, FFO and AFFO Guidance Per Share (3) (5) (6) | |||
| Earnings per share (diluted) | $0.09 | $0.15 | $0.20 |
| FFO per share of common stock (diluted) (4) | $1.08 | $1.14 | $1.19 |
| AFFO per share of common stock (diluted) (4) | $1.50 | $1.56 | $1.61 |
_____________________________________________
(1) Combined Portfolio includes 28 properties and 7,707 units.
(2) Real estate taxes and insurance are increasing 9.8% and 50.4% at the midpoint, respectively. The insurance increase is primarily due to the implementation of a master insurance program effective Q4 2022, which replaced policies at 17 properties which were scheduled to expire throughout 2023. We believe that future increases in insurance expense will be more in line with the market.
(3) Per Share guidance is based on 19.23 million weighted average shares outstanding, which includes for the year 164,000 shares of Restricted Stock and 148,000 shares issued pursuant to the Dividend Reinvestment Program (DRIP).
(4) See the reconciliation of Funds From Operations, or FFO, Adjusted Funds From Operations, or 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."
(5) This guidance, including all assumptions presented, constitutes forward-looking information. Actual full year 2023 EPS, FFO, AFFO and NOI could vary significantly from the projections presented.
(6) The shares repurchased by the Company during the quarter ended September 30, 2023, due to the timing of such repurchases and the use of a weighted average number of shares, did not significantly impact FFO and AFFO on a per share basis for such quarter. The Company estimates that the repurchase of an aggregate of 671,332 shares from April 1, 2023 through October 31, 2023, will favorably impact FFO and AFFO by approximately $.02 per share during the three months ending December 31, 2023, and share repurchases in the future, if any, may further favorably impact FFO and AFFO on a per share basis.
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Components of Net Asset Value
As of September 30, 2023
(dollars in thousands)
____________________________________________________________________________________________________________________
| Net Operating Income for the three months ended September 30, 2023 | ||
|---|---|---|
| Consolidated | $ | 12,927 |
| Unconsolidated (Pro rata) | 2,860 | |
| Total Net Operating Income | $ | 15,787 |
| OTHER ASSETS | ||
| Cash and Cash Equivalents | $ | 28,117 |
| Cash and Cash Equivalents - Unconsolidated pro rata | 3,864 | |
| Restricted Cash | 769 | |
| Other Assets | 17,766 | |
| Other Assets - Unconsolidated pro rata | 12,276 | |
| Total Cash and Other Assets | $ | 62,792 |
| OTHER LIABILITIES | ||
| Accounts Payable and Accrued Liabilities | $ | 24,272 |
| Accounts Payable and Accrued Liabilities - Unconsolidated pro rata | 4,751 | |
| Total Other Liabilities | $ | 29,023 |
| DEBT SUMMARY | ||
| Mortgages Payable: | ||
| Consolidated | $ | 422,935 |
| Unconsolidated (Pro rata) | 115,639 | |
| Total Mortgages Payable | $ | 538,574 |
| Credit Facility | — | |
| Subordinated Notes | 37,138 | |
| Total Debt Outstanding | $ | 575,712 |
| Common Shares Outstanding | 18,642 |
;
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Operating Results
(dollars in thousands except per share data)
_____________________________________________________________________________________________________________________
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |||||
| Revenues: | ||||||||
| Rental and other revenue from real estate properties | $ | 23,510 | $ | 21,691 | $ | 69,704 | $ | 47,804 |
| Other income | 342 | 6 | 405 | 12 | ||||
| Total revenues | 23,852 | 21,697 | 70,109 | 47,816 | ||||
| Expenses: | ||||||||
| Real estate operating expenses | 10,583 | 9,195 | 31,565 | 20,296 | ||||
| Interest expense | 5,581 | 5,061 | 16,577 | 9,994 | ||||
| General and administrative | 4,017 | 3,673 | 11,920 | 10,839 | ||||
| Depreciation and amortization | 6,544 | 8,165 | 22,095 | 16,781 | ||||
| Total expenses | 26,725 | 26,094 | 82,157 | 57,910 | ||||
| Total revenues less total expenses | (2,873) | (4,397) | (12,048) | (10,094) | ||||
| Equity in earnings of unconsolidated joint ventures | 426 | 135 | 1,705 | 1,315 | ||||
| Equity in earnings from sale of unconsolidated joint venture properties | — | 11,472 | 14,744 | 64,531 | ||||
| Gain on sale of real estate | 604 | — | 604 | 6 | ||||
| Insurance recovery | 261 | — | 476 | — | ||||
| Gain on insurance recoveries | — | 62 | 240 | 62 | ||||
| Loss on extinguishment of debt | — | — | — | (563) | ||||
| (Loss) income from continuing operations | (1,582) | 7,272 | 5,721 | 55,257 | ||||
| Income tax (benefit) provision | (122) | 178 | 5 | 976 | ||||
| (Loss) income from continuing operations, net of taxes | (1,460) | 7,094 | 5,716 | 54,281 | ||||
| Net income attributable to non-controlling interests | (34) | (35) | (106) | (107) | ||||
| Net (loss) income attributable to common stockholders | $ | (1,494) | $ | 7,059 | $ | 5,610 | $ | 54,174 |
| Weighted average number of shares of common stock outstanding: | ||||||||
| Basic | 17,851,715 | 17,928,197 | 18,022,975 | 17,721,700 | ||||
| Diluted | 17,851,715 | 17,994,457 | 18,045,767 | 17,784,362 | ||||
| Per share amounts attributable to common stockholders: | ||||||||
| Basic | $ | (0.08) | $ | 0.37 | $ | 0.30 | $ | 2.91 |
| Diluted | $ | (0.08) | $ | 0.37 | $ | 0.27 | $ | 2.89 |
Table of Contents
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, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |||||
| Revenues: | ||||||||
| Rental and other revenue | $ | 10,636 | $ | 13,502 | $ | 34,244 | $ | 60,840 |
| Total revenues | 10,636 | 13,502 | 34,244 | 60,840 | ||||
| Expenses: | ||||||||
| Real estate operating expenses | 5,023 | 6,512 | 15,835 | 27,523 | ||||
| Interest expense | 2,212 | 2,843 | 7,057 | 13,762 | ||||
| Depreciation | 2,568 | 3,113 | 7,833 | 14,957 | ||||
| Total expenses | 9,803 | 12,468 | 30,725 | 56,242 | ||||
| Total revenues less total expenses | 833 | 1,034 | 3,519 | 4,598 | ||||
| Other equity earnings | 3 | 12 | 119 | 89 | ||||
| Gain on insurance recoveries | — | — | 65 | 567 | ||||
| Gain on sale of real estate | — | 16,937 | 38,418 | 118,270 | ||||
| Loss on extinguishment of debt | — | (573) | (561) | (3,491) | ||||
| Net income from joint ventures | $ | 836 | $ | 17,410 | $ | 41,560 | $ | 120,033 |
| BRT equity in earnings and equity in earnings from sale of unconsolidated joint venture properties | $ | 426 | $ | 11,607 | $ | 16,449 | $ | 65,846 |
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Funds from Operations and
Adjusted Funds from Operations
(dollars in thousands)
____________________________________________________________________________________________________________________
The tables below provides a reconciliation of net loss determined in accordance with GAAP to FFO and AFFO on a dollar and per share basis for each of the indicated periods (dollars in thousands, except per share amounts):
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |||||
| GAAP Net (loss) income attributable to common stockholders | $ | (1,494) | $ | 7,059 | $ | 5,610 | $ | 54,174 |
| Add: depreciation and amortization of properties | 6,544 | 8,165 | 22,095 | 16,781 | ||||
| Add: our share of depreciation in unconsolidated joint venture<br> properties | 1,307 | 1,657 | 3,985 | 9,234 | ||||
| Deduct: our share of equity in earnings from sale of unconsolidated<br> joint venture properties | — | (11,472) | (14,744) | (64,531) | ||||
| Deduct: gain on sale of real estate | (604) | — | (604) | (6) | ||||
| Adjustments for non-controlling interests | (4) | (4) | (12) | (12) | ||||
| NAREIT Funds from operations attributable to common stockholders | $ | 5,749 | $ | 5,405 | $ | 16,330 | $ | 15,640 |
| Adjustments for: straight-line rent accruals | 24 | 6 | 68 | 18 | ||||
| Add: loss on extinguishment of debt | — | — | — | 563 | ||||
| Add: our share of loss on extinguishment of debt from unconsolidated<br> joint venture properties | — | 388 | 212 | 1,880 | ||||
| Add: amortization of restricted stock and RSU expense | 1,473 | 1,208 | 4,076 | 3,183 | ||||
| Add: amortization of deferred mortgage and debt costs | 272 | 191 | 799 | 370 | ||||
| Add: our share of deferred mortgage costs from unconsolidated joint<br> venture properties | 26 | 33 | 80 | 199 | ||||
| Add: amortization of fair value adjustment for mortgage debt | 152 | — | 463 | — | ||||
| Less: gain on insurance recoveries | — | (62) | (240) | (62) | ||||
| Less: our share of gain on insurance recoveries from unconsolidated<br> joint venture properties | — | — | (30) | (432) | ||||
| Adjustments for non-controlling interests | (4) | (1) | (11) | (3) | ||||
| Adjusted funds from operations attributable to common stockholders | $ | 7,692 | $ | 7,168 | $ | 21,747 | $ | 21,356 |
Funds from Operations and
Adjusted Funds from Operations
(dollars in thousands, except per share data)
____________________________________________________________________________________________________________________
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |||||
| GAAP Net (loss) income attributable to common stockholders | $ | (0.08) | $ | 0.37 | $ | 0.28 | $ | 2.91 |
| Add: depreciation and amortization of properties | 0.35 | 0.44 | 1.17 | 0.90 | ||||
| Add: our share of depreciation in unconsolidated joint venture properties | 0.07 | 0.09 | 0.21 | 0.50 | ||||
| Deduct: our share of equity in earnings from sale of unconsolidated joint venture properties | (0.03) | (0.61) | (0.77) | (3.47) | ||||
| Deduct: gain on sale of real estate | — | — | (0.03) | — | ||||
| Adjustment for non-controlling interests | — | — | — | — | ||||
| NAREIT Funds from operations per diluted common share | $ | 0.31 | $ | 0.29 | $ | 0.86 | $ | 0.84 |
| Adjust for straight line rent accruals | — | — | — | — | ||||
| Add: loss on extinguishment of debt | — | — | — | 0.03 | ||||
| Add: our share of loss on extinguishment of debt from unconsolidated joint venture properties | — | 0.02 | 0.01 | 0.10 | ||||
| Add: amortization of restricted stock and RSU expense | 0.08 | 0.06 | 0.22 | 0.16 | ||||
| Add: amortization of deferred mortgage and debt costs | 0.01 | 0.01 | 0.04 | 0.02 | ||||
| Add: our share of deferred mortgage and debt costs from unconsolidated joint venture properties | — | — | — | 0.01 | ||||
| Add: amortization of fair value adjustment for mortgage debt | 0.01 | — | 0.02 | — | ||||
| Less: gain on insurance proceeds | — | — | (0.01) | — | ||||
| Less: our share of gain on insurance proceeds from unconsolidated joint venture properties | — | — | — | (0.02) | ||||
| Adjustments for non-controlling interests | — | — | — | — | ||||
| Adjusted funds from operations per diluted common share | $ | 0.41 | $ | 0.38 | $ | 1.14 | $ | 1.14 |
| Diluted shares outstanding for FFO and AFFO | 18,804,874 | 18,928,648 | 19,016,032 | 18,712,740 |
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Consolidated Balance Sheets
(amounts in thousands, except per share amounts)
_____________________________________________________________________________________________________________________
| September 30, 2023 | December 31, 2022 | |||
|---|---|---|---|---|
| (unaudited) | (audited) | |||
| ASSETS | ||||
| Real estate properties, net of accumulated depreciation and amortization | $ | 639,989 | $ | 651,603 |
| Investment in unconsolidated joint ventures | 34,501 | 42,576 | ||
| Cash and cash equivalents | 28,117 | 20,281 | ||
| Restricted cash | 769 | 872 | ||
| Other assets | 17,766 | 16,786 | ||
| Total Assets | $ | 721,142 | $ | 732,118 |
| LIABILITIES AND EQUITY | ||||
| Liabilities: | ||||
| Mortgages payable, net of deferred costs | $ | 422,935 | $ | 403,792 |
| Junior subordinated notes, net of deferred costs | 37,138 | 37,123 | ||
| Credit facility, net of deferred costs | — | 18,502 | ||
| Accounts payable and accrued liabilities | 24,272 | 22,631 | ||
| Total Liabilities | 484,345 | 482,048 | ||
| 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; 17,689 and 18,006 shares outstanding | 177 | 180 | ||
| Additional paid-in capital | 269,273 | 273,863 | ||
| Accumulated deficit | (32,662) | (23,955) | ||
| Total BRT Apartments Corp. stockholders’ equity | 236,788 | 250,088 | ||
| Non-controlling interests | 9 | (18) | ||
| Total Equity | 236,797 | 250,070 | ||
| Total Liabilities and Equity | $ | 721,142 | $ | 732,118 |
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Contracted Acquisition and Disposition
and Stock Repurchase
(dollars in thousands)
________________________________________________________________________________________
| CONTRACTED PURCHASE OF PROPERTY (1) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Property/Location | No. of Units | Interest | Purchase Price | Mortgage Debt Assumption | Interest Rate | |||
| The Winterfield at Midlothian, Richmond, VA | 238 | 100% | $ | 62,500 | $ | 32,000 | 3.34 | % |
(1) It is anticipated that this purchase will be completed by year end 2023.
| SALE OF PROPERTY OWNED BY UNCONSOLIDATED JOINT VENTURE | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Property/Location | Date of Sale | No. of Units | Interest Owned | Sales Price | BRT's share of Prepayment Charge | BRT's Share of Gain on Sale | |||
| Chatham Court Reflections, Dallas, TX | 5/12/2023 | 494 | 50% | $ | 73,000 | $ | 212 | $ | 14,744 |
| STOCK REPURCHASE ACTIVITY | |||||||||
| --- | --- | --- | --- | ||||||
| The Company's stock repurchase activity during the during the periods indicated is reflected in the table below: | |||||||||
| Quarter ending | Shares repurchased | Total cost | Average Cost Per Share | ||||||
| June 30, 2023 | 309,153 | $ | 5,833,803 | $18.87 | |||||
| September 30, 2023 | 264,165 | 4,950,603 | $18.74 | ||||||
| Total | 573,318 | $ | 10,784,406 | $18.81 | |||||
| December 31, 2023 (through October 31, 2023) | 98,014 | $ | 1,688,656 | $17.23 | |||||
| YTD Total | 671,332 | $ | 12,473,062 | $18.33 |
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Value-Add Program and Capital Expenditures
Quarter ended September 30, 2023
________________________________________________________________________________________
| 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 | |||
| 90 | $ | 677,000 | $ | 7,220 | $ | 205 | 34% | 675 |
| (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 <br> 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 <br> 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 <br> 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) | $ | 1,546,000 | $ | 157,000 | $ | 1,389,000 | ||
| Estimated Non-Recurring Capital Expenditures (2) | 1,395,000 | 18,000 | 1,377,000 | |||||
| Total Capital Expenditures | $ | 2,941,000 | $ | 175,000 | $ | 2,766,000 | ||
| Replacements (operating expense) (3) | $ | 773,815 | $ | 91,822 | $ | 681,993 | ||
| Estimated Recurring Capital Expenditures and <br>Replacements per unit (7,707 units) | $ | 301 | $ | 32 | $ | 269 | ||
| (1) Recurring capital expenditures represent our estimate of expenditures incurred at the property to maintain the property's existing operations - it excludes<br> 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<br><br>property, and revenue enhancing upgrades. | ||||||||
| (3) Replacements are expensed and not capitalized as incurred at the property. | ||||||||
| (4) Based on BRT's percentage equity interest. |
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Debt Analysis
As of September 30, 2023
(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) | ||||||||||
| 2023 | $ | 724 | $ | 724 | $ | — | — | % | — | % | |||||
| 2024 | 3,331 | 3,331 | — | — | % | — | % | ||||||||
| 2025 | 19,860 | 4,485 | 15,375 | 4 | % | 4.42 | % | ||||||||
| 2026 | 74,621 | 5,090 | 69,531 | 18 | % | 4.12 | % | ||||||||
| 2027 | 46,189 | 3,394 | 42,795 | 11 | % | 3.96 | % | ||||||||
| Thereafter | 282,434 | 24,775 | 257,659 | 67 | % | 4.00 | % | ||||||||
| Total | $ | 427,159 | $ | 41,799 | $ | 385,360 | 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) | ||||||||||
| 2023 | $ | 433 | $ | 433 | — | — | % | — | % | ||||||
| 2024 | 1,759 | 1,759 | $ | — | — | % | — | % | |||||||
| 2025 | 1,842 | 1,842 | — | — | % | — | % | ||||||||
| 2026 | 23,661 | 1,805 | 21,856 | 20 | % | 4.67 | % | ||||||||
| 2027 | 13,026 | 1,472 | 11,554 | 11 | % | 4.15 | % | ||||||||
| Thereafter | 75,471 | 1,790 | 73,681 | 69 | % | 3.81 | % | ||||||||
| Total | $ | 116,192 | $ | 9,101 | $ | 107,091 | 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) | ||||||||||
| 2023 | $ | 1,157 | $ | 1,157 | $ | — | — | — | % | ||||||
| 2024 | 5,090 | 5,090 | — | — | — | % | |||||||||
| 2025 | 21,702 | 6,327 | 15,375 | 3 | % | 4.42 | % | ||||||||
| 2026 | 98,282 | 6,895 | 91,387 | 19 | % | 4.17 | % | ||||||||
| 2027 | 59,215 | 4,866 | 54,349 | 11 | % | 4.00 | % | ||||||||
| Thereafter | 357,905 | 26,565 | 331,340 | 67 | % | 3.96 | % | ||||||||
| Total | $ | 543,351 | $ | 50,900 | $ | 492,451 | 100 | % | |||||||
| Weighted Average Remaining Term to Maturity (2) | 6.8 | years | |||||||||||||
| Weighted Average Interest Rate (2) | 4.02 | % | |||||||||||||
| Debt Service Coverage Ratio for the quarter ended September 30, 2023 | 1.36 | (3) | |||||||||||||
| (1) Based on principal payments due at maturity. | |||||||||||||||
| (2) Includes consolidated and BRT's pro rata share of 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 $262 | ||||||||||||||
| Interest Rate | 3 month term SOFR + 2.26% (i.e, 7.63% at 9/30/2023) | ||||||||||||||
| Maturity | April 30, 2036 | ||||||||||||||
| Credit Facility (as of September 30, 2023) | |||||||||||||||
| Maximum Amount Available | Up to $60,000 | ||||||||||||||
| Amount Outstanding | $0 | ||||||||||||||
| Interest Rate (1) | 1 month SOFR + 2.50% (floor of 6%) | ||||||||||||||
| Maturity | September 2025 |
_____________________________________________
(1) As of November 1, 2023, the interest rate in effect is 7.82%
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Quarter ended September 30, 2023
(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 | |||||||
| Texas | 600 | $ | 2,346 | $ | 1,398 | $ | 948 | 7.3 | % | 91.1 | % | $ | 1,190 |
| Georgia | 688 | 2,716 | 1,295 | 1,421 | 11.0 | % | 93.4 | % | 1,245 | ||||
| Florida | 518 | 2,368 | 1,195 | 1,173 | 9.1 | % | 95.5 | % | 1,459 | ||||
| Ohio | 264 | 941 | 400 | 541 | 4.2 | % | 96.8 | % | 1,102 | ||||
| Virginia | 220 | 1,141 | 467 | 674 | 5.2 | % | 94.5 | % | 1,635 | ||||
| North Carolina | 264 | 1,056 | 441 | 615 | 4.8 | % | 95.3 | % | 1,273 | ||||
| South Carolina | 474 | 2,136 | 1,102 | 1,034 | 8.0 | % | 96.1 | % | 1,400 | ||||
| Tennessee | 702 | 3,594 | 1,479 | 2,115 | 16.4 | % | 94.3 | % | 1,658 | ||||
| Alabama | 740 | 2,807 | 1,185 | 1,622 | 12.5 | % | 93.7 | % | 1,197 | ||||
| Missouri | 174 | 953 | 441 | 512 | 4.0 | % | 94.8 | % | 1,738 | ||||
| Mississippi | 776 | 3,084 | 1,033 | 2,051 | 15.8 | % | 95.8 | % | 1,282 | ||||
| Legacy assets | — | 368 | 147 | 221 | 1.7 | % | N/A | N/A | |||||
| Totals | 5,420 | $ | 23,510 | $ | 10,583 | $ | 12,927 | 100 | % | 94.4 | % | $ | 1,352 |
| Unconsolidated (Pro-Rata Share) | |||||||||||||
| Units at period end | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Weighted Average Occupancy | Weighted Average Rent per Occ. Unit | |||||||
| Texas | 1,103 | $ | 2,663 | $ | 1,369 | $ | 1,294 | 45.2 | % | 93.6 | % | $ | 1,539 |
| South Carolina | 713 | 1,289 | 495 | 794 | 27.8 | % | 94.6 | % | 1,481 | ||||
| Georgia | 271 | 973 | 473 | 500 | 17.5 | % | 95.7 | % | 1,541 | ||||
| Alabama | 200 | 561 | 289 | 272 | 9.5 | % | 96.5 | % | 1,084 | ||||
| Totals | 2,287 | $ | 5,486 | $ | 2,626 | $ | 2,860 | 100 | % | 94.4 | % | $ | 1,480 |
_________________________________________________________________________________
(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."
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Nine months ended September 30, 2023
(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 | |||||
| Texas | 600 | $ | 6,896 | $ | 4,112 | $ | 2,784 | 7.3% | 90.7 | % | |
| Georgia | 688 | 7,947 | 3,848 | 4,099 | 10.7% | 93.6 | % | 1,217 | |||
| Florida | 518 | 7,094 | 3,377 | 3,717 | 9.7% | 95.2 | % | 1,454 | |||
| Ohio | 264 | 2,807 | 1,259 | 1,548 | 4.1% | 97.1 | % | 1,094 | |||
| Virginia | 220 | 3,434 | 1,351 | 2,083 | 5.5% | 96.0 | % | 1,620 | |||
| North Carolina | 264 | 3,119 | 1,257 | 1,862 | 4.9% | 94.9 | % | 1,243 | |||
| South Carolina | 474 | 6,409 | 3,354 | 3,055 | 8.0% | 95.5 | % | 1,395 | |||
| Tennessee | 702 | 10,548 | 4,435 | 6,113 | 16.0% | 94.1 | % | 1,626 | |||
| Alabama | 740 | 8,406 | 3,694 | 4,712 | 12.4% | 94.2 | % | 1,183 | |||
| Missouri | 174 | 2,830 | 1,303 | 1,527 | 4.0% | 94.7 | % | 1,709 | |||
| Mississippi | 776 | 9,104 | 3,208 | 5,896 | 15.5% | 96.1 | % | 1,258 | |||
| Legacy assets | — | 1,110 | 367 | 743 | 1.9% | N/A | N/A | ||||
| Totals | 5,420 | $ | 69,704 | $ | 31,565 | $ | 38,139 | 100.0% | 94.5 | % | |
| Unconsolidated (Pro-Rata Share) | |||||||||||
| Units at period end | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Average Occupancy | Average Rent per Occ. Unit | |||||
| Texas | 1,103 | $ | 7,839 | $ | 3,878 | $ | 3,961 | 42.3% | 92.9% | 1,468 | |
| South Carolina | 713 | 3,827 | 1,409 | 2,418 | 25.8% | 94.1% | 1,474 | ||||
| Georgia | 271 | 2,857 | 1,398 | 1,459 | 15.6% | 96.2% | 1,495 | ||||
| Alabama | 200 | 1,666 | 845 | 821 | 8.8% | 97.9% | 1,058 | ||||
| Sold properties | — | 1,445 | 745 | 700 | 7.5% | N/A | N/A | ||||
| Totals | 2,287 | $ | 17,634 | $ | 8,275 | $ | 9,359 | 100% | 94.0% | 1,438 |
All values are in US Dollars.
_________________________________________________________________________________
(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."
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Combined Portfolio Metrics (1)
Quarters ended September 30, 2023 and 2022
(dollars in thousands)
_____________________________________________________________________________________________________________________
| Three Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|
| 2023 | 2022 | % Change | |||||
| Combined Revenues | $ | 28,619 | $ | 27,481 | 4.1 | % | |
| Combined Operating Expenses | |||||||
| Payroll | $ | 2,492 | $ | 2,393 | 4.1 | % | |
| Real Estate taxes | 3,332 | 3,099 | 7.5 | % | |||
| Management Fees | 802 | 826 | (3.0) | % | |||
| Insurance | 1,255 | 753 | 66.6 | % | |||
| Utilities | 1,725 | 1,679 | 2.8 | % | |||
| Repairs and Maintenance | 1,736 | 1,644 | 5.6 | % | |||
| Replacements | 682 | 623 | 9.5 | % | |||
| Advertising, Leasing and Other | 1,034 | 838 | 23.4 | % | |||
| Total Combined Operating Expenses | $ | 13,057 | $ | 11,855 | 10.1 | % | |
| Total Combined Operating Income | $ | 15,561 | $ | 15,626 | (0.4) | % |
____________________________________________
(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, and
the other multifamily properties that BRT bought out and presented at 100% ownership for all periods presented, with a total of 7,707 units.
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Combined Portfolio Metrics (1)
Nine months ended September 30, 2023 and 2022
(dollars in thousands)
____________________________________________________________________________________________________________________
| Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|
| 2023 | 2022 | % Change | |||||
| Combined Revenues | $ | 84,755 | $ | 80,245 | 5.6 | % | |
| Combined Operating Expenses | |||||||
| Payroll | $ | 7,359 | $ | 6,816 | 8.0 | % | |
| Real Estate taxes | 10,035 | 9,329 | 7.6 | % | |||
| Management Fees | 2,426 | 2,514 | (3.5) | % | |||
| Insurance | 3,653 | 2,219 | 64.6 | % | |||
| Utilities | 5,080 | 4,617 | 10.0 | % | |||
| Repairs and Maintenance | 5,158 | 4,553 | 13.3 | % | |||
| Replacements | 1,911 | 1,627 | 17.4 | % | |||
| Advertising, Leasing and Other | 3,096 | 2,776 | 11.5 | % | |||
| Total Combined Operating Expenses | $ | 38,718 | $ | 34,452 | 12.4 | % | |
| Total Combined Operating Income | $ | 46,038 | $ | 45,793 | 0.5 | % |
________________________________________________
(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, and
the other multifamily properties that BRT bought out and presented at 100% ownership for all periods presented, with a total of 7,707 units.
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Portfolio Table
As of September 30, 2023
___________________________________________________________________________________________
| Property | City | State | Year Built | Year Acquired | Property Age | Units | Q3 2023 Avg. Occupancy | Q3 2023 Avg. Rent per Occ. Unit | |||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Properties - All 100% Owned | |||||||||||
| Silvana Oaks | North Charleston | SC | 2010 | 2012 | 12 | 208 | 95.2% | $ | 1,447 | ||
| Avondale Station | Decatur | GA | 1954 | 2012 | 68 | 212 | 92.6% | 1,451 | |||
| Newbridge Commons | Columbus | OH | 1999 | 2013 | 23 | 264 | 96.8% | 1,102 | |||
| Brixworth at Bridgestreet | Huntsville | AL | 1985 | 2013 | 37 | 208 | 93.3% | 1,114 | |||
| Avalon | Pensacola | FL | 2008 | 2014 | 14 | 276 | 94.8% | 1,525 | |||
| Crossings of Bellevue | Nashville | TN | 1985 | 2014 | 37 | 300 | 95.2% | 1,461 | |||
| Parkway Grande | San Marcos | TX | 2014 | 2015 | 8 | 192 | 96.2% | 1,311 | |||
| Woodland Trails | LaGrange | GA | 2010 | 2015 | 12 | 236 | 95.3% | 1,347 | |||
| Kilburn Crossing | Fredericksburg | VA | 2005 | 2016 | 17 | 220 | 94.5% | 1,635 | |||
| Verandas at Alamo Ranch | San Antonio | TX | 2015 | 2016 | 7 | 288 | 85.3% | 1,079 | |||
| Grove at River Place | Macon | GA | 1988 | 2016 | 34 | 240 | 92.1% | 960 | |||
| Civic Center 1 | Southaven | MS | 2002 | 2016 | 20 | 392 | 95.8% | 1,248 | |||
| Civic Center 2 | Southaven | MS | 2005 | 2016 | 17 | 384 | 95.7% | 1,316 | |||
| Vanguard Heights | Creve Coeur | MO | 2016 | 2017 | 6 | 174 | 94.8% | 1,738 | |||
| Jackson Square | Tallahassee | FL | 1996 | 2017 | 26 | 242 | 96.4% | 1,385 | |||
| Woodland Apartments | Boerne | TX | 2007 | 2017 | 15 | 120 | 97.0% | 1,235 | |||
| Magnolia Pointe | Madison | AL | 1991 | 2017 | 31 | 204 | 92.0% | 1,225 | |||
| Bell's Bluff | Nashville | TN | 2019 | 2018 | 3 | 402 | 93.8% | 1,807 | |||
| Crestmont at Thornblade | Greenville | SC | 1998 | 2018 | 24 | 266 | 96.7% | 1,365 | |||
| Somerset at Trussville | Trussville | AL | 2007 | 2019 | 15 | 328 | 95.0% | 1,232 | |||
| Abbotts Run | Wilmington | NC | 2001 | 2020 | 21 | 264 | 95.3% | 1,273 | |||
| Weighted Avg./Total Consolidated | 21 | 5,420 | |||||||||
| Properties owned by Unconsolidated Joint Ventures | % Ownership | ||||||||||
| Pointe at Lenox Park | Atlanta | GA | 1989 | 2016 | 33 | 271 | 95.7% | 1,541 | 74 | % | |
| Gateway Oaks | Forney | TX | 2016 | 2016 | 6 | 313 | 93.9% | 1,407 | 50 | % | |
| Mercer Crossing | Dallas | TX | 2015 | 2017 | 7 | 509 | 94.2% | 1,711 | 50 | % | |
| Canalside Lofts | Columbia | SC | 2008 | 2017 | 14 | 374 | 93.8% | 1,419 | 32 | % | |
| Landings of Carrier Parkway | Grand Prairie | TX | 2001 | 2018 | 22 | 281 | 92.2% | 1,371 | 50 | % | |
| Canalside Sola | Columbia | SC | 2015 | 2018 | 7 | 339 | 95.6% | 1,547 | 46 | % | |
| The Village at Lakeside | Auburn | AL | 1988 | 2019 | 34 | 200 | 97.3% | 1,084 | 80 | % | |
| Weighted Avg./Total Unconsolidated | 15 | 2,287 | |||||||||
| Development | |||||||||||
| Stono Oaks (1) | Johns Island | SC | |||||||||
| Weighted Avg./Total Portfolio | 19 | 7,707 |
___________________________
(1) Purchased a 17.45% interest in a planned 240-unit development property.
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
APPENDIX
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(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 its share of its unconsolidated joint ventures). Since the NAREIT White Paper(as described below) does not provide guidelines for computing AFFO, the computation of AFFO may vary from one REIT to another.
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 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. 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) depreciation expense, (2) general and administrative expenses, (3) interest expense, (4) loss on extinguishment of debt, (5) equity in earnings (loss) of unconsolidated joint ventures, (6) provision for taxes, and (7) the impact of non-controlling interests, and (b) deduct (1) other income, (2) gain on sale of real estate (3) insurance recovery of casualty loss, and (4) gain on insurance recoveries related to casualty loss.
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.
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.
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Consolidated Same Store Comparisons (1)
Quarters ended September 30, 2023 and 2022
(dollars in thousands, except monthly rent amounts)
_____________________________________________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Units | 2023 | 2022 | % Change | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||
| Georgia | 688 | $ | 2,716 | $ | 2,596 | 4.6 | % | $ | 1,295 | $ | 1,177 | 10.0 | % | $ | 1,421 | $ | 1,419 | 0.1 | % | |||
| Florida | 518 | 2,368 | 2,331 | 1.6 | % | 1,195 | 981 | 21.8 | % | 1,173 | 1,350 | (13.1) | % | |||||||||
| Texas | 600 | 2,346 | 2,325 | 0.9 | % | 1,398 | 1,092 | 28.0 | % | 948 | 1,233 | (23.1) | % | |||||||||
| Ohio | 264 | 941 | 908 | 3.6 | % | 400 | 361 | 10.8 | % | 541 | 547 | (1.1) | % | |||||||||
| Virginia | 220 | 1,141 | 1,140 | 0.1 | % | 467 | 442 | 5.7 | % | 674 | 698 | (3.4) | % | |||||||||
| South Carolina | 474 | 2,136 | 2,060 | 3.7 | % | 1,102 | 965 | 14.2 | % | 1,034 | 1,095 | (5.6) | % | |||||||||
| Tennessee | 702 | 3,594 | 3,524 | 2.0 | % | 1,479 | 1,518 | (2.6) | % | 2,115 | 2,006 | 5.4 | % | |||||||||
| Alabama | 208 | 714 | 645 | 10.7 | % | 294 | 277 | 6.1 | % | 420 | 368 | 14.1 | % | |||||||||
| Missouri | 174 | 953 | 907 | 5.1 | % | 441 | 380 | 16.1 | % | 512 | 527 | (2.8) | % | |||||||||
| Totals | 3,848 | $ | 16,909 | $ | 16,436 | 2.9 | % | $ | 8,071 | $ | 7,193 | 12.2 | % | $ | 8,838 | $ | 9,243 | (4.4) | % | |||
| 0 | ||||||||||||||||||||||
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||
| 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||
| Georgia | 93.4 | % | 97.0 | % | (3.7) | % | $ | 1,395 | $ | 1,278 | 9.2 | % | ||||||||||
| Florida | 95.5 | % | 95.8 | % | (0.3) | % | 1,459 | 1,411 | 3.4 | % | ||||||||||||
| Texas | 91.1 | % | 94.3 | % | (3.4) | % | 1,190 | 1,175 | 1.3 | % | ||||||||||||
| Ohio | 96.8 | % | 97.5 | % | (0.7) | % | 1,102 | 1,050 | 5.0 | % | ||||||||||||
| Virginia | 94.5 | % | 97.1 | % | (2.7) | % | 1,635 | 1,601 | 2.1 | % | ||||||||||||
| South Carolina | 96.1 | % | 96.8 | % | (0.7) | % | 1,400 | 1,327 | 5.5 | % | ||||||||||||
| Tennessee | 94.4 | % | 96.9 | % | (2.6) | % | 1,657 | 1,597 | 3.8 | % | ||||||||||||
| Alabama | 93.3 | % | 91.2 | % | 2.3 | % | 1,114 | 971 | 14.7 | % | ||||||||||||
| Missouri | 94.8 | % | 95.4 | % | (0.6) | % | 1,738 | 1,637 | 6.2 | % | ||||||||||||
| Weighted Average | 94.2 | % | 96.0 | % | (1.9) | % | $ | 1,417 | $ | 1,267 | 11.8 | % |
_______________________________
(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."
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Consolidated Same Store Comparisons (1)
Nine months ended September 30, 2023 and 2022
(dollars in thousands, except monthly rent amounts)
____________________________________________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Units | 2023 | 2022 | % Change | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||
| Georgia | 448 | $ | 5,810 | $ | 5,482 | 6.0 | % | $ | 2,728 | $ | 2,401 | 13.6 | % | $ | 3,082 | $ | 3,081 | 0.0 | % | |||
| Florida | 276 | 4,039 | 3,773 | 7.1 | % | 1,748 | 1,500 | 16.5 | % | 2,291 | 2,273 | 0.8 | % | |||||||||
| Texas | 192 | 2,513 | 2,292 | 9.6 | % | 1,242 | 1,096 | 13.3 | % | 1,271 | 1,196 | 6.3 | % | |||||||||
| Ohio | 264 | 2,807 | 2,647 | 6.0 | % | 1,259 | 1,069 | 17.8 | % | 1,548 | 1,578 | (1.9) | % | |||||||||
| Virginia | 220 | 3,434 | 3,417 | 0.5 | % | 1,351 | 1,224 | 10.4 | % | 2,083 | 2,193 | (5.0) | % | |||||||||
| South Carolina | 474 | 6,409 | 6,059 | 5.8 | % | 3,354 | 2,903 | 15.5 | % | 3,055 | 3,156 | (3.2) | % | |||||||||
| Tennessee | 702 | $ | 10,548 | 10,282 | 2.6 | % | 4,435 | 4,280 | 3.6 | % | 6,113 | 6,002 | 1.8 | % | ||||||||
| Totals | 2,576 | $ | 35,560 | $ | 33,952 | 4.7 | % | $ | 16,117 | $ | 14,473 | $14,473 | 11.4 | % | $ | 19,443 | $ | 19,479 | (0.2) | % | ||
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||
| 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||
| Georgia | 93.5 | % | 97.6 | % | (4.2) | % | $ | 1,370 | $ | 1,233 | 11.1 | % | ||||||||||
| Florida | 95.1 | % | 96.5 | % | (1.5) | % | 1,536 | 1,409 | 9.0 | % | ||||||||||||
| Texas | 95.6 | % | 96.9 | % | (1.3) | % | 1,305 | 1,180 | 10.6 | % | ||||||||||||
| Ohio | 97.1 | % | 97.2 | % | (0.1) | % | 1,094 | 1,023 | 6.9 | % | ||||||||||||
| Virginia | 96.0 | % | 98.0 | % | (2.0) | % | 1,620 | 1,578 | 2.7 | % | ||||||||||||
| South Carolina | 95.4 | % | 97.3 | % | (2.0) | % | 1,396 | 1,283 | 8.8 | % | ||||||||||||
| Tennessee | 94.0 | % | 97.4 | % | (3.5) | % | $ | 1,626 | $ | 1,543 | 5.4 | % | ||||||||||
| Weighted Average | 94.9 | % | 97.3 | % | (2.5) | % | $ | 1,449 | $ | 1,350 | 7.3 | % |
_______________________________
(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."
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons (1)
Quarters ended September 30, 2023 and 2022
BRT Pro-rata Share
(dollars in thousands, except monthly rent amounts)
________________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI (2) | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Units | 2023 | 2022 | % Change | 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||
| Texas | 1,103 | $ | 2,663 | $ | 2,560 | 4.0 | % | $ | 1,369 | $ | 1,170 | 17.0 | % | $ | 1,294 | $ | 1,390 | (6.9) | % | ||
| Georgia | 271 | 973 | 889 | 9.4 | % | 473 | 435 | 8.7 | % | 500 | 454 | 10.1 | % | ||||||||
| South Carolina | 713 | 1,289 | 1,244 | 3.6 | % | 495 | 478 | 3.6 | % | 794 | 766 | 3.7 | % | ||||||||
| Alabama | 200 | 561 | 524 | 7.1 | % | 289 | 247 | 17.0 | % | 272 | 277 | (1.8) | % | ||||||||
| Totals | 2,287 | $ | 5,486 | $ | 5,217 | 5.2 | % | $ | 2,626 | $ | 2,330 | 12.7 | % | $ | 2,860 | $ | 2,887 | (0.9) | % | ||
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | ||||||||||||||||||||
| 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||
| Texas | 93.6 | % | 95.6 | % | (2.1) | % | $ | 1,539 | $ | 1,444 | 6.6 | % | |||||||||
| Georgia | 95.7 | % | 93.0 | % | 2.9 | % | 1,541 | 1,427 | 8.0 | % | |||||||||||
| South Carolina | 94.6 | % | 97.1 | % | (2.6) | % | 1,481 | 1,405 | 5.4 | % | |||||||||||
| Alabama | 97.3 | % | 97.0 | % | 0.3 | % | 1,084 | 1,000 | 8.4 | % | |||||||||||
| Weighted Average | 94.5 | % | 95.9 | % | (1.5) | % | $ | 1,480 | $ | 1,390 | 6.5 | % |
________________________________
(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."
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons (1)
Nine months ended September 30, 2023 and 2022
BRT Pro-rata Share
(dollars in thousands, except monthly rent amounts)
_______________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI (2) | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Units | 2023 | 2022 | % Change | 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||
| Texas | 1,103 | $ | 7,839 | $ | 7,421 | 5.6 | % | $ | 3,878 | $ | 3,500 | 10.8 | % | $ | 3,961 | $ | 3,921 | 1.0 | % | ||
| Georgia | 271 | 2,857 | 2,600 | 9.9 | % | 1,398 | 1,170 | 19.5 | % | 1,459 | 1,430 | 2.0 | % | ||||||||
| South Carolina | 713 | 3,827 | 3,622 | 5.7 | % | 1,408 | 1,345 | 4.7 | % | 2,419 | 2,277 | 6.2 | % | ||||||||
| Alabama | 200 | 1,663 | 1,521 | 9.3 | % | 845 | 732 | 15.4 | % | 818 | 789 | 3.7 | % | ||||||||
| Totals | 2,287 | $ | 16,186 | $ | 15,164 | 6.7 | % | $ | 7,529 | $ | 6,747 | 11.6 | % | $ | 8,657 | $ | 8,417 | 2.9 | % | ||
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | ||||||||||||||||||||
| 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||
| Texas | 92.7 | % | 95.5 | % | (2.9) | % | $ | 1,530 | $ | 1,404 | 9.0 | % | |||||||||
| Georgia | 96.2 | % | 93.7 | % | 2.7 | % | 1,495 | 1,384 | 8.0 | % | |||||||||||
| South Carolina | 94.1 | % | 96.9 | % | (2.9) | % | 1,474 | 1,367 | 7.8 | % | |||||||||||
| Alabama | 98.1 | % | 97.4 | % | 0.7 | % | 1,058 | 971 | 9.0 | % | |||||||||||
| Weighted Average | 94.0 | % | 95.9 | % | (2.0) | % | $ | 1,465 | $ | 1,351 | 8.4 | % |
___________________________________
(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."
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Buyout NOI by State (1)
Quarters ended September 30, 2023 and 2022
Assuming 100% Ownership
(dollars in thousands)
________________________________________________________________________________________
| Three Months Ended September 30, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | |||||||||||
| Revenues | Expenses | NOI | Revenues | Expenses | NOI | |||||||
| Alabama | $ | 2,093 | $ | 890 | $ | 1,203 | $ | 2,002 | $ | 827 | $ | 1,175 |
| Mississippi | 3,084 | 1,033 | 2,051 | 2,867 | 1,107 | 1,761 | ||||||
| North Carolina | 1,057 | 441 | 616 | 967 | 387 | 580 | ||||||
| Totals | $ | 6,233 | $ | 2,363 | $ | 3,870 | $ | 5,837 | $ | 2,320 | $ | 3,516 |
__________________________________________________
(1) Represents five properties in which we purchased our partner's remaining interest in 2022. This table represents information as if these
properties were wholly owned by the Company for all periods presented.
Buyout NOI by State (1)
Nine months ended September 30, 2023 and 2022
Assuming 100% Ownership
(dollars in thousands)
_______________________________________________________________________________________
| Nine Months Ended September 30, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | |||||||||||
| Revenues | Expenses | NOI | Revenues | Expenses | NOI | |||||||
| Alabama | $ | 8,406 | $ | 3,693 | $ | 4,713 | $ | 7,807 | $ | 3,309 | $ | 4,497 |
| Florida | 3,054 | 1,627 | 1,427 | 2,830 | 1,397 | 1,433 | ||||||
| Georgia | 2,137 | 1,120 | 1,016 | 1,994 | 1,055 | 939 | ||||||
| Mississippi | 9,103 | 3,207 | 5,896 | 8,318 | 2,986 | 5,332 | ||||||
| Missouri | 2,830 | 1,304 | 1,526 | 2,647 | 1,112 | 1,535 | ||||||
| North Carolina | 3,120 | 1,257 | 1,863 | 2,817 | 1,117 | 1,700 | ||||||
| Texas | 4,383 | 2,869 | — | 4,741 | 2,277 | 2,463 | ||||||
| Totals | $ | 33,034 | $ | 15,078 | $ | 17,955 | $ | 31,153 | $ | 13,252 | $ | 17,901 |
___________________________________________________________________
(1) Represents eleven properties in which we purchased our partner's remaining interest in 2022. This table represents information as if these
properties were wholly owned by the Company for all periods presented.
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
2023 Guidance Reconciliation
_____________________________________________________________________________________________________________________
| Guidance Reconciliation: | Low End | Mid Point | High End |
|---|---|---|---|
| Net income per share attributable to common stockholders | $0.09 | $0.15 | $0.20 |
| Add: depreciation of properties | 1.44 | 1.44 | 1.44 |
| Add: our share of depreciation in unconsolidated joint ventures | 0.29 | 0.29 | 0.29 |
| Deduct: gain on sale of real estate | (0.74) | (0.74) | (0.74) |
| Adjustment for non controlling interests | — | — | — |
| FFO per share of common stock (diluted) | $1.08 | $1.14 | $1.19 |
| Adjustment for: straight-line rent accruals | — | — | — |
| Add: amortization of restricted stock and RSU expense | 0.31 | 0.31 | 0.31 |
| Add: amortization of deferred mortgage and debt costs | 0.06 | 0.06 | 0.06 |
| Add: our share of amortization of deferred mortgage and debt costs from <br> unconsolidated ventures | 0.01 | 0.01 | 0.01 |
| Add: loss on extinguishment of debt | 0.01 | 0.01 | 0.01 |
| Add: amortization of fair value adjustment for mortgage debt | 0.03 | 0.03 | 0.03 |
| Adjustments for non- controlling interests | — | — | — |
| AFFO per common share (diluted) | $1.50 | $1.56 | $1.61 |
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
Assuming 100% Ownership
(dollars in thousands)
________________________________________________________________________________________
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| Buyout | 2023 | 2022 | 2023 | 2022 | ||||
| Net (loss) income | $ | (1,494) | $ | 7,059 | $ | 5,610 | $ | 54,174 |
| Less: Equity in earnings from JV | (426) | (11,607) | (16,449) | (65,846) | ||||
| Add: Net income from unconsolidated JV | 836 | 17,410 | 41,560 | 120,033 | ||||
| Less: Other income | (342) | (6) | (405) | (12) | ||||
| Add: Interest expense | 5,581 | 5,061 | 16,577 | 9,994 | ||||
| General and administrative | 4,017 | 3,673 | 11,920 | 10,839 | ||||
| Impairment charge | — | — | — | — | ||||
| Depreciation and amortization | 6,544 | 8,165 | 22,095 | 16,781 | ||||
| Provision for taxes | (122) | 178 | 5 | 976 | ||||
| Loss on Extinguishment of debt | — | — | — | 563 | ||||
| Unconsolidated Interest expense | 2,212 | 2,843 | 7,057 | 13,762 | ||||
| Unconsolidated Depreciation | 2,568 | 3,113 | 7,833 | 14,957 | ||||
| Unconsolidated Loss on extinguishment of debt | — | 573 | 561 | 3,491 | ||||
| Less: Gain on sale of real estate | (604) | — | (604) | (6) | ||||
| Insurance recovery | (261) | — | (476) | — | ||||
| Gain on insurance recoveries | — | (62) | (240) | (62) | ||||
| Unconsolidated Insurance Recovery | — | — | — | — | ||||
| Unconsolidated Gain on Insurance Recoveries | — | — | (65) | (567) | ||||
| Unconsolidated Gain on Sale | — | (16,937) | (38,418) | (118,270) | ||||
| Unconsolidated Other equity earnings | (3) | (12) | (119) | (89) | ||||
| Add: Net loss attributable to non-controlling interests | 34 | 35 | 106 | 107 | ||||
| Net Operating Income | 18,540 | 19,486 | 56,548 | 60,825 | ||||
| Less: Non-buyout net operating income | 14,670 | 15,970 | 38,593 | 42,924 | ||||
| Buyout Net Operating Income | $ | 3,870 | $ | 3,516 | $ | 17,955 | $ | 17,901 |
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND 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 September 30, | Nine Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |||||
| GAAP Net (loss) income attributable to common stockholders | $ | (1,494) | $ | 7,059 | $ | 5,610 | $ | 54,174 |
| Less: Other Income | (342) | (6) | (405) | (12) | ||||
| Add: Interest expense | 5,581 | 5,061 | 16,577 | 9,994 | ||||
| General and administrative | 4,017 | 3,673 | 11,920 | 10,839 | ||||
| Depreciation and amortization | 6,544 | 8,165 | 22,095 | 16,781 | ||||
| Provision for taxes | (122) | 178 | 5 | 976 | ||||
| Less: Gain on sale of real estate | (604) | — | (604) | (6) | ||||
| Equity in earnings from sale of unconsolidated joint venture<br> properties | — | (11,472) | (14,744) | (64,531) | ||||
| Insurance recovery | (261) | — | (476) | — | ||||
| Gain on insurance recoveries | — | (62) | (240) | (62) | ||||
| Add: Loss on extinguishment of debt | — | — | — | 563 | ||||
| Adjust for: Equity in (earnings) loss of unconsolidated joint venture<br> properties | (426) | (135) | (1,705) | (1,315) | ||||
| Add: Net income attributable to non-controlling interests | 34 | 35 | 106 | 107 | ||||
| Net Operating Income | $ | 12,927 | $ | 12,496 | $ | 38,139 | $ | 27,508 |
| Less: Non-same store Net Operating Income | 4,089 | 3,253 | $ | 18,696 | $ | 8,029 | ||
| Same store Net Operating Income | $ | 8,838 | $ | 9,243 | $ | 19,443 | $ | 19,479 |
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND 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 September 30, | Nine Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |||||
| BRT equity in earnings from joint ventures | $ | 426 | $ | 11,607 | $ | 16,449 | $ | 65,846 |
| Add: Interest expense | 1,134 | 1,542 | 3,607 | 8,592 | ||||
| Depreciation | 1,303 | 1,657 | 3,984 | 9,234 | ||||
| Loss on extinguishment of debt | — | 388 | 212 | 1,876 | ||||
| Less: Gain on insurances recoveries | — | — | (30) | (428) | ||||
| Gain on sale of real estate | — | (11,472) | (14,744) | (64,531) | ||||
| Equity in earnings of joint ventures | (3) | (12) | (119) | (89) | ||||
| Net Operating Income | $ | 2,860 | $ | 3,710 | $ | 9,359 | $ | 20,500 |
| Less: Non-same store Net Operating Income | $ | — | $ | 823 | 702 | 12,083 | ||
| Same store Net Operating Income | $ | 2,860 | $ | 2,887 | $ | 8,657 | $ | 8,417 |
| Consolidated same store Net Operating Income | $ | 8,838 | $ | 9,243 | 19,443 | 19,479 | ||
| Unconsolidated same store Net Operating Income | 2,860 | 2,887 | 8,657 | 8,417 | ||||
| Buyout same store Net Operating Income | 3,870 | 3,516 | 17,955 | 17,901 | ||||
| Combined same store Net Operating Income | $ | 15,568 | $ | 15,646 | $ | 46,055 | $ | 45,797 |
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)
_____________________________________________________________________________________________________________________
The condensed income statements for the unconsolidated properties below, present, for the periods indicated, a reconciliation of the information that appears in note 7 to the consolidated financial statements included in BRT's Quarterly Report on Form 10-Q for the period ended September 30, 2023 to the BRT pro-rata information presented below:
| Three Months Ended September 30, 2023 | ||||||
|---|---|---|---|---|---|---|
| Total | BRT's Pro Rata Share | Partner Share | ||||
| Revenues: | ||||||
| Rental and other revenue | $ | 10,636 | $ | 5,486 | $ | 5,150 |
| Total revenues | 10,636 | 5,486 | 5,150 | |||
| Expenses: | ||||||
| Real estate operating expenses | 5,023 | 2,626 | 2,397 | |||
| Interest expense | 2,212 | 1,134 | 1,078 | |||
| Depreciation | 2,568 | 1,303 | 1,265 | |||
| Total expenses | 9,803 | 5,063 | $ | 4,740 | ||
| Total revenues less total expenses | 833 | 423 | 410 | |||
| Gain on sale of real estate properties | — | — | — | |||
| Loss on extinguishment of debt | — | — | — | |||
| Net income | $ | 836 | 426 | $ | 410 | |
| Three Months Ended September 30, 2022 | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Total | BRT's Pro Rata Share | Partner Share | ||||
| Revenues: | ||||||
| Rental and other revenue | $ | 13,502 | $ | 7,314 | $ | 6,188 |
| Total revenues | 13,502 | 7,314 | 6,188 | |||
| Expenses: | ||||||
| Real estate operating expenses | 6,512 | 3,604 | 2,908 | |||
| Interest expense | 2,843 | 1,542 | 1,301 | |||
| Depreciation | 3,113 | 1,657 | 1,456 | |||
| Total expenses | 12,468 | 6,803 | $ | 5,665 | ||
| Total revenues less total expenses | 1,034 | 511 | 523 | |||
| Other equity earnings | 12 | 12 | — | |||
| Gain on insurance recoveries | — | — | — | |||
| Gain on sale of real estate properties | 16,937 | 11,472 | 5,465 | |||
| Loss on extinguishment of debt | (573) | (388) | (185) | |||
| Net income | $ | 17,410 | $ | 11,607 | $ | 5,803 |
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)
_____________________________________________________________________________________________________________________
The condensed income statements for the unconsolidated properties below present for the periods indicated a reconciliation of the information that appears in note 7 of BRT's Annual report on Form 10-Q to the BRT pro rata information presented here in this supplemental.
| Nine Months Ended September 30, 2023 | ||||||
|---|---|---|---|---|---|---|
| Total | BRT's Pro Rata Share | Partner Share | ||||
| Revenues: | ||||||
| Rental and other revenue | $ | 34,244 | $ | 17,634 | $ | 16,610 |
| Total revenues | 34,244 | 17,634 | 16,610 | |||
| Expenses: | ||||||
| Real estate operating expenses | 15,835 | 8,275 | 7,560 | |||
| Interest expense | 7,057 | 3,607 | 3,450 | |||
| Depreciation | 7,833 | 3,984 | 3,849 | |||
| Total expenses | 30,725 | 15,866 | $ | 14,859 | ||
| Total revenues less total expenses | 3,519 | 1,768 | 1,751 | |||
| Other equity earnings | 119 | 119 | — | |||
| Impairment charges | — | — | — | |||
| Insurance recoveries | — | — | ||||
| Gain on insurance recoveries | 65 | 30 | 35 | |||
| Gain on sale of real estate properties | 38,418 | 14,744 | 23,674 | |||
| Loss on extinguishment of debt | (561) | (212) | (349) | |||
| Net income | $ | 41,560 | $ | 16,449 | $ | 25,111 |
| Nine Months Ended September 30, 2022 | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Total | BRT's Pro Rata Share | Partner Share | ||||
| Revenues: | ||||||
| Rental and other revenue | $ | 60,840 | $ | 37,600 | $ | 23,240 |
| Total revenues | 60,840 | 37,600 | 23,240 | |||
| Expenses: | ||||||
| Real estate operating expenses | 27,523 | 17,100 | 10,423 | |||
| Interest expense | 13,762 | 8,592 | 5,170 | |||
| Depreciation | 14,957 | 9,234 | 5,723 | |||
| Total expenses | 56,242 | 34,926 | $ | 21,316 | ||
| Total revenues less total expenses | 4,598 | 2,674 | 1,924 | |||
| Other equity earnings | 89 | 89 | — | |||
| Gain on insurance recoveries | 567 | 428 | 139 | |||
| Gain on sale of real estate properties | 118,270 | 64,531 | 53,739 | |||
| Loss on extinguishment of debt | (3,491) | (1,876) | (1,615) | |||
| Net income | $ | 120,033 | $ | 65,846 | 54,187 |
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Balance Sheet of Unconsolidated Joint Venture Entities
(amounts in thousands, except per share amounts)
_____________________________________________________________________________________________________________________
At September 30, 2023, the Company held interests in unconsolidated joint ventures that own 7 multi-family properties (the "Unconsolidated Properties") and an interest in a development project. The condensed balance sheet below present information regarding such properties:
| September 30, 2023 | ||||||
|---|---|---|---|---|---|---|
| TOTAL | BRT's Pro Rata Share | Partner Share | ||||
| ASSETS | ||||||
| Real estate properties, net of accumulated depreciation | $ | 278,096 | $ | 139,890 | $ | 138,206 |
| Cash and cash equivalents | 8,504 | 3,864 | 4,640 | |||
| Other assets | 50,789 | 12,276 | 38,513 | |||
| Total Assets | $ | 337,389 | $ | 156,030 | $ | 181,359 |
| LIABILITIES AND EQUITY | ||||||
| Liabilities: | ||||||
| Mortgages payable, net of deferred costs | 242,763 | 115,639 | 127,124 | |||
| Accounts payable and accrued liabilities | 11,547 | 4,751 | 6,796 | |||
| Total Liabilities | 254,310 | 120,390 | 133,920 | |||
| Commitments and contingencies | ||||||
| Equity: | ||||||
| Total unconsolidated joint venture equity | 83,079 | 35,640 | 47,439 | |||
| Total Liabilities and Equity | $ | 337,389 | $ | 156,030 | $ | 181,359 |
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