BRT 8-K
BRT Apartments Corp. (BRT)
8-K
2024-11-07
For: 2024-11-07
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Added on
April 11, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 7, 2024
(Exact name of Registrant as specified in charter)
| (State or other jurisdiction of incorporation) | (Commission file No.) | (IRS Employer I.D. No.) | ||||||||||||
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: 516 -466-3100
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
240.14d-2(b))
240.13e-4(c)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02. Results of Operations and Financial Condition.
Item 7.01 Regulation FD Disclosure.
Certain of our executive officers will be meeting with analysts and other persons and may provide such persons with copies of, or discuss the information set forth in, the attached material.
Pursuant to, among other things, Regulation FD, we hereby furnish the information contained in the materials attached as Exhibit 99.1 to this Current Report on Form 8-K, which information is incorporated into these Items 2.02 and 7.01 (collectively, the “Item”) by this reference.
The information in this Current Report on Form 8-K under this Item, as well as Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The furnishing of this Report is not intended to constitute a determination by us that the information is material or that the dissemination of the information is required by Regulation FD or otherwise.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| Supplemental Financial Information dated November 7, 2024 | ||||||||
| 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 7, 2024 | /s/ George Zweier | |||||||
| George Zweier, Vice President | ||||||||
| and Chief Financial Officer | ||||||||
Exhibit 99.1
| SUPPLEMENTAL FINANCIAL INFORMATION FOR THREE MONTHS ENDED SEPTEMBER 30, 2024 | ||
November 07, 2024
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 or investing in multi-family properties (including challenges in (i) buying properties directly without the participation of joint venture partners and (ii) making alternative investments in multi-family properties, and the limited number of multi-family property investment/acquisition opportunities available to us), which transactions may not be completed or may not produce the cash flows or income expected;
•the competitive environment in which we operate, including competition that could adversely affect our ability to acquire properties and/or limit our ability to lease apartments or increase or maintain rental rates;
•exposure to risks inherent in investments in a single industry and sector;
•the concentration of our multi-family properties in the Southeastern United States and Texas, which makes us more susceptible to adverse developments in those markets;
•increases in expenses over which we have limited control, such as real estate taxes, insurance costs and utilities, due to inflation and other factors;
•impairment in the value of real estate we own;
•failure of property managers to properly manage properties;
•accessibility of debt and equity capital markets;
•disagreements with, or misconduct by, joint venture partners;
•inability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures due to the level and volatility of interest or capitalization rates or capital market conditions;
•extreme weather and natural disasters such as hurricanes, tornadoes and floods;
•lack of or insufficient amounts of insurance to cover, among other things, losses from catastrophes;
•risks associated with acquiring value-add multi-family properties, which involves greater risks than more conservative approaches;
•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.
The state-by-state and property-by-property revenue, weighted average rent per occupied unit and similar information presented herein do not give effect to the deferred rent concessions. Revenues for each of the three and nine months ended September 30, 2024, exclude $952,000 of the deferred rent concessions, including amortization, with respect to the consolidated data and $105,000 with respect to the unconsolidated data.
| Table of Contents | Page Number | ||||
| Quarterly Results | |||||
| Financial Highlights | |||||
| Components of Net Asset Value | |||||
| Operating Results | |||||
| Operating Results of Unconsolidated Properties | |||||
| Funds From Operations and Adjusted Funds From Operations | |||||
| Consolidated Balance Sheets | |||||
| Stock Repurchases | |||||
| Value-Add Program and Capital Expenditures | |||||
| Debt Analysis | |||||
| Portfolio Data by State | |||||
| Combined Portfolio Metrics | |||||
| Portfolio Table | |||||
| Appendix | |||||
| Non-GAAP Financial Measure and Definitions | |||||
| Consolidated Same Store Comparison | |||||
| Unconsolidated Same Store Comparison | |||||
| Reconciliations | |||||
| Balance Sheets of Unconsolidated Joint Venture Entities | |||||
BRT Apartments Corp. (NYSE: BRT)
Third Quarter 2024 and Subsequent Highlights
•Reported results for the third quarter of 2024 of net loss of $2.2 million, or $(0.12) per diluted share, Funds from Operations, or FFO, of $0.30 per diluted share and Adjusted Funds from Operations, or AFFO, of $0.36 per diluted share.
•Equity in earnings of unconsolidated joint ventures was $369,000 in the third quarter of 2024.
•Combined Portfolio NOI increased 0.6% for the third quarter of 2024 compared to the prior-year period.
•Combined Portfolio NOI, net loss, FFO and AFFO results were in line with the operational environment the Company previously outlined in its 2024 outlook.
•Repurchased 6,563 shares during the third quarter at a weighted average price of $17.55.
•Maintained revolving credit facility of up to $40.0 million, with $0 outstanding, and maturity in September 2027.
•Closed a $28.0 million, seven-year mortgage at an interest rate of 5.22% secured by the Company’s Woodland Trails – LaGrange, Georgia property.
•Provided a total of $18.3 million at a weighted average initial current pay rate of 6.0% to 6.5% and an all-in rate, including PIK, of 13.0%. These funds were provided to a 204-unit multifamily property in Wilmington, North Carolina and a 184-unit multifamily property in Kennesaw, Georgia.
See the reconciliations provided later in this supplemental of FFO, AFFO and Combined Portfolio NOI, to net income, as calculated in accordance with GAAP, and the definitions of such terms under "Non-GAAP Financial Measures and Definitions."
Full Year 2024 Outlook
The Company has updated its previously issued commentary below:
•The operational environment in BRT’s Combined Portfolio is expected to be consistent with other Sunbelt-focused operators with new supply muting new and renewal lease rent growth until at least part of 2025 as the new supply is absorbed.
•BRT intends to emphasize stable average occupancy within the portfolio until it can achieve a lift in rental rates.
•Controllable expense growth is expected to grow modestly compared to 2023 and non-controllable expenses, particularly insurance, are expected to moderate somewhat compared to 2023.
•BRT’s balance sheet has no debt maturities until the third quarter of 2025, improved pricing and full availability on its credit facility and ample liquidity to deploy.
•The 240-unit Stono Oaks development in Johns Island, SC, of which BRT owns a 17.45% interest, is in lease up and is anticipated to continue to lead to a drag on earnings from equity in unconsolidated joint ventures as the Company recognizes depreciation and interest expense associated with the development.
•A more favorable environment for transactions with smaller, private operators experiencing capital, ownership and/or refinancing challenges has materialized in the second half of 2024. The Company remains patient on asset growth in the near term but is cautiously optimistic that it may find additional opportunities to deploy its available liquidity for capital situations and/or asset acquisitions in 2025.
1
•Long-term, the Company believes the Sunbelt offers compelling advantages due to the predominance of pro-business states, along with better population and job growth from migration patterns and business investment.
•With new supply growth expected to moderate in Sunbelt markets in 2025 and 2026, the Company expects a disciplined capital allocation strategy, a focus on stabilizing occupancy in a challenging leasing environment during 2024 and a pipeline of new investment opportunities to translate from a bridge year in 2024 to better growth over the next two to three years.
BRT Apartments Corp. (NYSE: BRT)
Financial Highlights
_________________________________________________________________________________________________________
As of September 30, | |||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||
| Market capitalization (thousands) | $ | 329,818 | $ | 321,947 | |||||||||||||||||||||||||||||||||||||
| Shares outstanding (thousands) | 18,761 | 18,642 | |||||||||||||||||||||||||||||||||||||||
| Closing share price | $ | 17.58 | $ | 17.27 | |||||||||||||||||||||||||||||||||||||
| Quarterly dividend declared per share | $ | 0.25 | $ | 0.25 | |||||||||||||||||||||||||||||||||||||
Quarter ended September 30, | |||||||||||||||||||||||||||||||||||||||||
| Combined | Consolidated | Unconsolidated | |||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||
| Properties owned | 29 | 28 | 21 | 21 | 8 | 7 | |||||||||||||||||||||||||||||||||||
| Units (a) | 7,947 | 7,707 | 5,420 | 5,420 | 2,527 | 2,287 | |||||||||||||||||||||||||||||||||||
| Average occupancy (b) | 94.4 | % | 94.4 | % | 94.5 | % | 94.4 | % | 94.1 | % | 94.4 | % | |||||||||||||||||||||||||||||
| Average monthly rental revenue per occupied unit (b) | $ | 1,404 | $ | 1,390 | $ | 1,363 | $ | 1,352 | $ | 1,504 | $ | 1,480 | |||||||||||||||||||||||||||||
| ____________________________ | |||||||||||||||||||||||||||||||||||||||||
| (a) Includes a 240-unit multi-family property in lease up | |||||||||||||||||||||||||||||||||||||||||
| (b) Excludes a 240-unit multi-family property in lease up | |||||||||||||||||||||||||||||||||||||||||
Quarter ended September 30, | |||||||||||||||||||||||||||||||||||||||||
| Per share data | 2024 (Unaudited) | 2023 (Unaudited | |||||||||||||||||||||||||||||||||||||||
| (Loss) per share, basic and diluted | $ | (0.12) | $ | (0.08) | |||||||||||||||||||||||||||||||||||||
| FFO per share of common stock (diluted) (1) | $ | 0.30 | $ | 0.31 | |||||||||||||||||||||||||||||||||||||
| AFFO per share of common stock (diluted) (1) | $ | 0.36 | $ | 0.41 | |||||||||||||||||||||||||||||||||||||
| As of September 30, | |||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||
| Debt to Enterprise Value (2) | 68 | % | 67 | % | |||||||||||||||||||||||||||||||||||||
(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."
3
BRT Apartments Corp. (NYSE: BRT)
Components of Net Asset Value
As of September 30, 2024
(all in thousands)
____________________________________________________________________________________________________________________
| Net Operating Income for the three months ended September 30, 2024 | ||||||||
| Consolidated | $ | 12,990 | ||||||
| Unconsolidated (Pro rata) | 2,991 | |||||||
| Total Net Operating Income | $ | 15,981 | ||||||
| OTHER ASSETS | ||||||||
| Cash and Cash Equivalents | $ | 45,801 | ||||||
| Cash and Cash Equivalents - Unconsolidated pro rata | 2,685 | |||||||
| Restricted Cash | — | |||||||
| Other Assets | 18,988 | |||||||
| Other Assets - Unconsolidated pro rata | 4,441 | |||||||
| Total Cash and Other Assets | $ | 71,915 | ||||||
| OTHER LIABILITIES | ||||||||
| Accounts Payable and Accrued Liabilities | $ | 23,669 | ||||||
| Accounts Payable and Accrued Liabilities - Unconsolidated pro rata | 4,225 | |||||||
| Total Other Liabilities | $ | 27,894 | ||||||
| DEBT SUMMARY | ||||||||
| Mortgages Payable: | ||||||||
| Consolidated | $ | 447,147 | ||||||
| Unconsolidated (Pro rata) | 116,167 | |||||||
| Total Mortgages Payable | $ | 563,314 | ||||||
| Credit Facility | $ | — | ||||||
| Subordinated Notes | 37,158 | |||||||
| Total Debt Outstanding | $ | 600,472 | ||||||
| Common Shares Outstanding | 18,761 | |||||||
____________________________________________
(1) See the Appendix for a reconciliation of the non-GAAP amounts presented to GAAP amounts
4
BRT Apartments Corp. (NYSE: BRT)
Operating Results
(amounts in thousands except per share data)
_____________________________________________________________________________________________________________________
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Rental and other revenue from real estate properties | $ | 24,177 | $ | 23,510 | $ | 71,253 | $ | 69,704 | |||||||||||||||
| Interest and other income | 219 | 342 | 408 | 405 | |||||||||||||||||||
| Total revenues | 24,396 | 23,852 | 71,661 | 70,109 | |||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Real estate operating expenses | 11,187 | 10,583 | 32,612 | 31,565 | |||||||||||||||||||
| Interest expense | 5,745 | 5,581 | 16,768 | 16,577 | |||||||||||||||||||
| General and administrative | 3,811 | 4,017 | 11,776 | 11,920 | |||||||||||||||||||
| Depreciation and amortization | 6,499 | 6,544 | 19,400 | 22,095 | |||||||||||||||||||
| Total expenses | 27,242 | 26,725 | 80,556 | 82,157 | |||||||||||||||||||
| Total revenues less total expenses | (2,846) | (2,873) | (8,895) | (12,048) | |||||||||||||||||||
| Equity in earnings of unconsolidated joint ventures | 369 | 426 | 986 | 1,705 | |||||||||||||||||||
| Equity in earnings from sale of unconsolidated joint venture properties | — | — | — | 14,744 | |||||||||||||||||||
| Gain on sale of real estate | — | 604 | — | 604 | |||||||||||||||||||
| Insurance recovery | — | 261 | — | 476 | |||||||||||||||||||
| Gain on insurance recoveries | — | — | — | 240 | |||||||||||||||||||
| (Loss) income from continuing operations | (2,477) | (1,582) | (7,909) | 5,721 | |||||||||||||||||||
| Income tax (benefit) provision | (310) | (122) | (297) | 5 | |||||||||||||||||||
| (Loss) income from continuing operations, net of taxes | (2,167) | (1,460) | (7,612) | 5,716 | |||||||||||||||||||
| Net income attributable to non-controlling interests | (38) | (34) | (109) | (106) | |||||||||||||||||||
| Net (loss) income attributable to common stockholders | $ | (2,205) | $ | (1,494) | $ | (7,721) | $ | 5,610 | |||||||||||||||
| Weighted average number of shares of common stock outstanding: | |||||||||||||||||||||||
| Basic | 17,796,206 | 17,851,715 | 17,720,024 | 18,022,975 | |||||||||||||||||||
| Diluted | 17,796,206 | 17,851,715 | 17,720,024 | 18,045,767 | |||||||||||||||||||
| Per share amounts attributable to common stockholders: | |||||||||||||||||||||||
| Basic | $ | (0.12) | $ | (0.08) | $ | (0.41) | $ | 0.30 | |||||||||||||||
| Diluted | $ | (0.12) | $ | (0.08) | $ | (0.41) | $ | 0.27 | |||||||||||||||
5
BRT Apartments Corp. (NYSE: BRT)
Operating Results of Unconsolidated Properties
(amounts in thousands)
_____________________________________________________________________________________________________________________
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| Rental and other revenue | $ | 11,611 | $ | 10,636 | $ | 33,529 | $ | 34,244 | ||||||||||||||||||
| Total revenues | 11,611 | 10,636 | 33,529 | 34,244 | ||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||
| Real estate operating expenses | 5,578 | 5,023 | 16,462 | 15,835 | ||||||||||||||||||||||
| Interest expense | 2,898 | 2,212 | 8,508 | 7,057 | ||||||||||||||||||||||
| Depreciation | 2,916 | 2,568 | 8,714 | 7,833 | ||||||||||||||||||||||
| Total expenses | 11,392 | 9,803 | 33,684 | 30,725 | ||||||||||||||||||||||
| Total revenues less total expenses | 219 | 833 | (155) | 3,519 | ||||||||||||||||||||||
| Other equity earnings | 5 | 3 | 26 | 119 | ||||||||||||||||||||||
| Gain on insurance recoveries | — | — | — | 65 | ||||||||||||||||||||||
| Gain on sale of real estate | — | — | — | 38,418 | ||||||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | (561) | ||||||||||||||||||||||
| Net (loss) income from joint ventures | $ | 224 | $ | 836 | $ | (129) | $ | 41,560 | ||||||||||||||||||
| BRT equity in earnings of unconsolidated joint venture properties | $ | 369 | $ | 426 | $ | 986 | $ | 16,449 | ||||||||||||||||||
6
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, | |||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| GAAP Net (loss) income attributable to common stockholders | $ | (2,205) | $ | (1,494) | $ | (7,721) | $ | 5,610 | ||||||||||||||||||
| Add: depreciation and amortization of properties | 6,499 | 6,544 | 19,400 | 22,095 | ||||||||||||||||||||||
| Add: our share of depreciation in unconsolidated joint venture properties | 1,379 | 1,307 | 4,119 | 3,985 | ||||||||||||||||||||||
| Deduct: our share of equity in earnings from sale of unconsolidated joint venture properties | — | — | — | (14,744) | ||||||||||||||||||||||
| Deduct: gain on sale of real estate | — | (604) | — | (604) | ||||||||||||||||||||||
| Adjustments for non-controlling interests | (4) | (4) | (12) | (12) | ||||||||||||||||||||||
| NAREIT Funds from operations attributable to common stockholders | $ | 5,669 | $ | 5,749 | $ | 15,786 | $ | 16,330 | ||||||||||||||||||
| Adjustments for: deferred rent concessions and straight line rent | (537) | 24 | (900) | 68 | ||||||||||||||||||||||
| Adjustments for: our share of straight-line rent and rent concession accruals from unconsolidated joint venture properties | (45) | — | (105) | — | ||||||||||||||||||||||
| Add: our share of loss on extinguishment of debt from unconsolidated joint venture properties | — | — | — | 212 | ||||||||||||||||||||||
| Add: amortization of restricted stock and RSU expense | 1,189 | 1,473 | 3,621 | 4,076 | ||||||||||||||||||||||
| Add: amortization of deferred mortgage and debt costs | 324 | 272 | 866 | 799 | ||||||||||||||||||||||
| Add: our share of deferred mortgage costs from unconsolidated joint venture properties | 30 | 26 | 90 | 80 | ||||||||||||||||||||||
| Add: amortization of fair value adjustment for mortgage debt | 139 | 152 | 421 | 463 | ||||||||||||||||||||||
| Less: gain on insurance recoveries | — | — | — | (240) | ||||||||||||||||||||||
| Less: our share of gain on insurance recoveries from unconsolidated joint venture properties | — | — | — | (30) | ||||||||||||||||||||||
| Adjustments for non-controlling interests | — | (4) | (8) | (11) | ||||||||||||||||||||||
| Adjusted funds from operations attributable to common stockholders | $ | 6,769 | $ | 7,692 | $ | 19,771 | $ | 21,747 | ||||||||||||||||||
7
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, | |||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| GAAP Net (loss) income attributable to common stockholders | $ | (0.12) | $ | (0.08) | $ | (0.41) | $ | 0.28 | ||||||||||||||||||
| Add: depreciation and amortization of properties | 0.35 | 0.35 | 1.04 | 1.17 | ||||||||||||||||||||||
| Add: our share of depreciation in unconsolidated joint venture properties | 0.07 | 0.07 | 0.22 | 0.21 | ||||||||||||||||||||||
| Deduct: our share of equity in earnings from sale of unconsolidated joint venture properties | — | — | — | (0.77) | ||||||||||||||||||||||
| Deduct: gain on sale of real estate | — | (0.03) | — | (0.03) | ||||||||||||||||||||||
| Adjustment for non-controlling interests | — | — | — | — | ||||||||||||||||||||||
| NAREIT Funds from operations per diluted common share | $ | 0.30 | $ | 0.31 | $ | 0.85 | $ | 0.86 | ||||||||||||||||||
| Adjustments for: deferred rent concessions and straight line rent | (0.03) | — | (0.05) | — | ||||||||||||||||||||||
| Adjustments for: our share of straight-line rent and rent concession accruals in unconsolidated joint venture properties | — | — | — | — | ||||||||||||||||||||||
| Add: our share of loss on extinguishment of debt from unconsolidated joint venture properties | — | — | — | 0.01 | ||||||||||||||||||||||
| Add: amortization of restricted stock and RSU expense | 0.06 | 0.08 | 0.19 | 0.22 | ||||||||||||||||||||||
| Add: amortization of deferred mortgage and debt costs | 0.02 | 0.01 | 0.05 | 0.04 | ||||||||||||||||||||||
| Add: our share of deferred mortgage and debt costs from unconsolidated joint venture properties | — | — | — | — | ||||||||||||||||||||||
| Add: amortization of fair value adjustment for mortgage debt | 0.01 | 0.01 | 0.02 | 0.02 | ||||||||||||||||||||||
| Less: gain on insurance recoveries | — | — | — | (0.01) | ||||||||||||||||||||||
| Less: our share of gain on insurance recoveries from unconsolidated joint venture properties | — | — | — | — | ||||||||||||||||||||||
| Adjustments for non-controlling interests | — | — | — | — | ||||||||||||||||||||||
| Adjusted funds from operations per diluted common share | $ | 0.36 | $ | 0.41 | $ | 1.06 | $ | 1.14 | ||||||||||||||||||
| Diluted shares outstanding for FFO and AFFO | 18,758,435 | 18,804,874 | 18,679,558 | 19,016,032 | ||||||||||||||||||||||
8
BRT Apartments Corp. (NYSE: BRT)
Consolidated Balance Sheets
(amounts in thousands, except per share amounts)
_____________________________________________________________________________________________________________________
| September 30, 2024 | December 31, 2023 | |||||||||||||
| (unaudited) | (audited) | |||||||||||||
| ASSETS | ||||||||||||||
| Real estate properties, net of accumulated depreciation and amortization | $ | 621,379 | $ | 635,836 | ||||||||||
| Investment in unconsolidated joint ventures | 31,573 | 34,242 | ||||||||||||
| Cash and cash equivalents | 45,801 | 23,512 | ||||||||||||
| Restricted cash | — | 632 | ||||||||||||
| Other assets | 18,988 | 15,741 | ||||||||||||
| Total Assets | $ | 717,741 | $ | 709,963 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Liabilities: | ||||||||||||||
| Mortgages payable, net of deferred costs | $ | 447,147 | $ | 422,427 | ||||||||||
| Junior subordinated notes, net of deferred costs | 37,158 | 37,143 | ||||||||||||
| Credit facility, net of deferred costs | — | — | ||||||||||||
| Accounts payable and accrued liabilities | 23,669 | 21,948 | ||||||||||||
| Total Liabilities | 507,974 | 481,518 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Equity: | ||||||||||||||
| BRT Apartments Corp. stockholders' equity: | ||||||||||||||
| Preferred shares $.01 par value 2,000 shares authorized, none issued | — | — | ||||||||||||
Common stock, $.01 par value, 300,000 shares authorized; 17,798 and 17,536 shares outstanding | 178 | 175 | ||||||||||||
| Additional paid-in capital | 270,406 | 267,271 | ||||||||||||
| Accumulated deficit | (60,716) | (38,986) | ||||||||||||
| Total BRT Apartments Corp. stockholders’ equity | 209,868 | 228,460 | ||||||||||||
| Non-controlling interests | (101) | (15) | ||||||||||||
| Total Equity | 209,767 | 228,445 | ||||||||||||
| Total Liabilities and Equity | $ | 717,741 | $ | 709,963 | ||||||||||
9
BRT Apartments Corp. (NYSE: BRT)
Stock Repurchase Activity
________________________________________________________________________________________
The Company's stock repurchase activity during the periods indicated is reflected in the table below: | ||||||||||||||||||||
| Quarter ended | Shares repurchased | Total cost | Average Cost Per Share | |||||||||||||||||
| March 31, 2024 | 123,061 | $ | 2,267,000 | $ | 18.43 | |||||||||||||||
| June 30, 2024 | 53,619 | 930,000 | 17.34 | |||||||||||||||||
| September 30, 2024 | 6,563 | 115,000 | 17.55 | |||||||||||||||||
| 183,243 | $ | 3,312,000 | $ | 18.07 | ||||||||||||||||
10
BRT Apartments Corp. (NYSE: BRT)
Value-Add Program and Capital Expenditures
Quarter ended September 30, 2024
________________________________________________________________________________________
| Value-Add Program | ||||||||||||||||||||||||||||||||
| (Includes consolidated and unconsolidated amounts) | ||||||||||||||||||||||||||||||||
| Units Rehabilitated (1) | Estimated Rehab Costs (2) | Estimated Rehab Costs Per unit | Estimated Average Monthly Rent Increase (3) | Estimated Annualized ROI (3) | Estimated units available to be renovated over next 24 months | |||||||||||||||||||||||||||
| 35 | $ | 253,000 | $ | 7,240 | $ | 197 | 33% | 378 | ||||||||||||||||||||||||
| (1) Refers to rehabilitated units with respect to which a new lease or renewal lease was entered into during the period. | ||||||||||||||||||||||||||||||||
| (2) Reflects rehab costs incurred during the current and prior periods with respect to units completed, in which a new lease or renewal lease was entered into during the current period. | ||||||||||||||||||||||||||||||||
| (3) These results are not necessarily indicative of the results that would be generated if such improvements were made across our portfolio of properties or at any particular property. Rents at a property may increase for reasons wholly unrelated to property improvements, such as changes in demand for rental units in a particular market or sub-market. Even if units are available to be renovated, the Company may decide not to renovate such units. | ||||||||||||||||||||||||||||||||
| Capital Expenditures | |||||||||||||||||
| (Includes consolidated and unconsolidated amounts) | |||||||||||||||||
| Gross Capital Expenditures | Less: JV Partner Share | BRT Share of Capital Expenditures (4) | |||||||||||||||
| Estimated Recurring Capital Expenditures (1) | $ | 953,000 | $ | 86,000 | $ | 867,000 | |||||||||||
| Estimated Non-Recurring Capital Expenditures (2) | 1,278,000 | 179,000 | 1,099,000 | ||||||||||||||
| Total Capital Expenditures | $ | 2,231,000 | $ | 265,000 | $ | 1,966,000 | |||||||||||
| Replacements (operating expense) (3) | $ | 924,064 | $ | 90,294 | $ | 833,770 | |||||||||||
| Estimated Recurring Capital Expenditures and Replacements per unit (7,707 units) (5) | $ | 244 | $ | 23 | $ | 221 | |||||||||||
| (1) Recurring capital expenditures represent our estimate of expenditures incurred at the property to maintain the property's existing operations - it excludes revenue enhancing projects. | |||||||||||||||||
(2) Non-recurring capital expenditures represent our estimate of significant improvements to the common areas, property exteriors, or interior units of the property, and revenue enhancing upgrades. | |||||||||||||||||
| (3) Replacements are expensed and not capitalized as incurred at the property. | |||||||||||||||||
| (4) Based on BRT's percentage equity interest. | |||||||||||||||||
| (5) Excludes a 240-unit multi-family property in lease up. | |||||||||||||||||
11
BRT Apartments Corp. (NYSE: BRT)
Debt Analysis
As of September 30, 2024
(dollars in thousands)
________________________________________________________________________________________________________________________________
| Consolidated | ||||||||||||||||||||||||||||||||
Year | Total Principal Payments | Scheduled Amortization | Principal Payments Due at Maturity | Percent of Total Principal Payments Due At Maturity | Weighted Average Interest Rate (1) | |||||||||||||||||||||||||||
| 2024 | $ | 921 | $ | 921 | $ | — | — | % | — | % | ||||||||||||||||||||||
| 2025 | 19,860 | 4,485 | 15,375 | 4 | % | 4.42 | % | |||||||||||||||||||||||||
| 2026 | 74,621 | 5,090 | 69,531 | 17 | % | 4.12 | % | |||||||||||||||||||||||||
| 2027 | 46,190 | 3,395 | 42,795 | 10 | % | 3.96 | % | |||||||||||||||||||||||||
| 2028 | 40,697 | 2,746 | 37,951 | 9 | % | 4.47 | % | |||||||||||||||||||||||||
| Thereafter | 269,112 | 22,029 | 247,083 | 60 | % | 4.06 | % | |||||||||||||||||||||||||
| Total | $ | 451,401 | $ | 38,666 | $ | 412,735 | 100 | % | ||||||||||||||||||||||||
Unconsolidated (BRT pro rata share) | ||||||||||||||||||||||||||||||||
| Year | Total Principal Payments | Scheduled Amortization | Principal Payments Due at Maturity | Percent of Total Principal Payments Due At Maturity | Weighted Average Interest Rate (1) | |||||||||||||||||||||||||||
| 2024 | $ | 451 | $ | 451 | — | — | % | — | % | |||||||||||||||||||||||
| 2025 | 1,842 | 1,842 | $ | — | — | % | — | % | ||||||||||||||||||||||||
| 2026 | 25,796 | 1,805 | 23,991 | 22 | % | 4.92 | % | |||||||||||||||||||||||||
| 2027 | 13,026 | 1,472 | 11,554 | 11 | % | 4.15 | % | |||||||||||||||||||||||||
| 2028 | 34,265 | 450 | 33,815 | 31 | % | 4.26 | % | |||||||||||||||||||||||||
| Thereafter | 41,205 | 1,339 | 39,866 | 36 | % | 3.43 | % | |||||||||||||||||||||||||
| Total | $ | 116,585 | $ | 7,359 | $ | 109,226 | 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) | |||||||||||||||||||||||||||
| 2024 | $ | 1,372 | $ | 1,372 | $ | — | — | — | % | |||||||||||||||||||||||
| 2025 | 21,702 | 6,327 | 15,375 | 3 | % | 4.42 | % | |||||||||||||||||||||||||
| 2026 | 100,417 | 6,895 | 93,522 | 18 | % | 4.32 | % | |||||||||||||||||||||||||
| 2027 | 59,216 | 4,867 | 54,349 | 10 | % | 4.00 | % | |||||||||||||||||||||||||
| 2028 | 74,962 | 3,196 | 71,766 | 14 | % | 4.37 | % | |||||||||||||||||||||||||
| Thereafter | 310,317 | 23,368 | 286,949 | 55 | % | 3.98 | % | |||||||||||||||||||||||||
| Total | $ | 567,986 | $ | 46,025 | $ | 521,961 | 100 | % | ||||||||||||||||||||||||
| Weighted Average Remaining Term to Maturity (2) | 5.9 | years | ||||||||||||||||||||||||||||||
| Weighted Average Interest Rate (2) | 4.09 | % | ||||||||||||||||||||||||||||||
Debt Service Coverage Ratio for the quarter ended September 30, 2024 | 1.32 | (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 $242 | ||||||||||
| Interest Rate | 3 month term SOFR + 2.26% (i.e., 7.52% at 9/30/2024) | ||||||||||
| Maturity | April 30, 2036 | ||||||||||
| Credit Facility | |||||||||||
| Maximum Amount Available | Up to $40,,000 | ||||||||||
| Amount Outstanding | $0 | ||||||||||
| Interest Rate | 1 month SOFR + 2.50% (floor of 6%) | ||||||||||
| Maturity | September 2027 | ||||||||||
____________________________________________
12
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Quarter ended September 30, 2024
(dollars in thousands, except monthly rent amounts)
_____________________________________________________________________________________________________________________
| Consolidated | ||||||||||||||||||||||||||||||||||||||||||||
| Units at period end | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Weighted Average Occupancy | Weighted Average Rent per Occ. Unit | ||||||||||||||||||||||||||||||||||||||
| Georgia | 688 | $ | 2,647 | $ | 1,418 | $ | 1,229 | 9.5% | 91.7% | $1,243 | ||||||||||||||||||||||||||||||||||
| Florida | 518 | 2,352 | 1,225 | 1,127 | 8.7% | 94.9% | 1,469 | |||||||||||||||||||||||||||||||||||||
| Texas | 600 | 2,377 | 1,326 | 1,051 | 8.1% | 94.1% | 1,208 | |||||||||||||||||||||||||||||||||||||
| Ohio | 264 | 981 | 515 | 466 | 3.6% | 94.1% | 1,172 | |||||||||||||||||||||||||||||||||||||
| Virginia | 220 | 1,219 | 515 | 704 | 5.4% | 96.8% | 1,714 | |||||||||||||||||||||||||||||||||||||
| North Carolina | 264 | 1,059 | 460 | 599 | 4.6% | 94.6% | 1,291 | |||||||||||||||||||||||||||||||||||||
| South Carolina | 474 | 2,181 | 1,268 | 913 | 7.0% | 94.7% | 1,443 | |||||||||||||||||||||||||||||||||||||
| Tennessee | 702 | 3,509 | 1,473 | 2,036 | 15.7% | 95.5% | 1,614 | |||||||||||||||||||||||||||||||||||||
| Alabama | 740 | 2,810 | 1,287 | 1,523 | 11.7% | 94.5% | 1,180 | |||||||||||||||||||||||||||||||||||||
| Mississippi | 776 | 3,151 | 1,119 | 2,032 | 15.6% | 95.1% | 1,317 | |||||||||||||||||||||||||||||||||||||
| Missouri | 174 | 948 | 448 | 500 | 3.8% | 95.6% | 1,703 | |||||||||||||||||||||||||||||||||||||
| Net deferred rent | — | 539 | — | 539 | 4.1% | N/A | N/A | |||||||||||||||||||||||||||||||||||||
| Legacy assets | — | 404 | 133 | 271 | 2.1% | N/A | N/A | |||||||||||||||||||||||||||||||||||||
| Totals | 5,420 | $ | 24,177 | $ | 11,187 | $ | 12,990 | 100% | 94.5% | $1,363 | ||||||||||||||||||||||||||||||||||
| 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 | $ | 2,628 | $ | 1,384 | $ | 1,244 | 41.6% | 92.7% | $1,504 | ||||||||||||||||||||||||||||||||||
| South Carolina | 713 | 1,359 | 510 | 849 | 28.4% | 94.5% | 1,591 | |||||||||||||||||||||||||||||||||||||
| Georgia | 271 | 975 | 473 | 502 | 16.8% | 95.1% | 1,530 | |||||||||||||||||||||||||||||||||||||
| Alabama | 200 | 610 | 303 | 307 | 10.3% | 98.8% | 1,173 | |||||||||||||||||||||||||||||||||||||
| Net deferred rent | — | 45 | — | 45 | 1.5% | N/A | N/A | |||||||||||||||||||||||||||||||||||||
Other (2) | 240 | 124 | 80 | 44 | 1.5% | N/A | N/A | |||||||||||||||||||||||||||||||||||||
| Totals | 2,527 | $ | 5,741 | $ | 2,750 | $ | 2,991 | 100% | 94.1% | $1,504 | ||||||||||||||||||||||||||||||||||
_________________________________________________________________________________
(1) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI and pro-rata share under "Non-GAAP Financial
Measures and Definitions."
(2) Represents property in lease up.
13
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Nine Months Ended September 30, 2024
(dollars in thousands, except monthly rent amounts)
____________________________________________________________________________________________________________________
| Consolidated | ||||||||||||||||||||||||||||||||||||||||||||
| Units at period end | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Weighted Average Occupancy | Weighted Average Rent per Occ. Unit | ||||||||||||||||||||||||||||||||||||||
| Texas | 600 | $ | 6,987 | $ | 3,859 | $ | 3,128 | 8.1% | 92.9% | $1,198 | ||||||||||||||||||||||||||||||||||
| Georgia | 688 | 7,958 | 4,171 | 3,787 | 9.8% | 91.5% | 1,241 | |||||||||||||||||||||||||||||||||||||
| Florida | 518 | 7,062 | 3,496 | 3,566 | 9.2% | 94.8% | 1,464 | |||||||||||||||||||||||||||||||||||||
| Ohio | 264 | 2,935 | 1,434 | 1,501 | 3.9% | 94.9% | 1,155 | |||||||||||||||||||||||||||||||||||||
| Virginia | 220 | 3,609 | 1,518 | 2,091 | 5.4% | 96.4% | 1,690 | |||||||||||||||||||||||||||||||||||||
| North Carolina | 264 | 3,198 | 1,336 | 1,862 | 4.8% | 94.9% | 1,282 | |||||||||||||||||||||||||||||||||||||
| South Carolina | 474 | 6,619 | 3,564 | 3,055 | 7.9% | 95.1% | 1,453 | |||||||||||||||||||||||||||||||||||||
| Tennessee | 702 | 10,117 | 4,397 | 5,720 | 14.8% | 93.8% | 1,571 | |||||||||||||||||||||||||||||||||||||
| Alabama | 740 | 8,484 | 3,879 | 4,605 | 11.9% | 94.4% | 1,192 | |||||||||||||||||||||||||||||||||||||
| Missouri | 174 | 2,826 | 1,302 | 1,524 | 3.9% | 95.1% | 1,697 | |||||||||||||||||||||||||||||||||||||
| Mississippi | 776 | 9,370 | 3,312 | 6,058 | 15.7% | 94.8% | 1,308 | |||||||||||||||||||||||||||||||||||||
| Net deferred rent | — | 952 | — | 952 | 2.5% | N/A | N/A | |||||||||||||||||||||||||||||||||||||
| Legacy assets | — | 1,136 | 344 | 792 | 2.0% | N/A | N/A | |||||||||||||||||||||||||||||||||||||
| Totals | 5,420 | $ | 71,253 | $ | 32,612 | $ | 38,641 | 100.0% | 94.1 | % | $1,353 | |||||||||||||||||||||||||||||||||
| 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 | $ | 7,889 | $ | 4,113 | $ | 3,776 | 43.0% | 92.6% | $1,510 | ||||||||||||||||||||||||||||||||||
| South Carolina | 713 | 4,013 | 1,486 | 2,527 | 28.8% | 94.7% | 1,558 | |||||||||||||||||||||||||||||||||||||
| Georgia | 271 | 2,906 | 1,424 | 1,482 | 16.9% | 94.3% | 1,534 | |||||||||||||||||||||||||||||||||||||
| Alabama | 200 | 1,786 | 856 | 930 | 10.6% | 97.6% | 1,149 | |||||||||||||||||||||||||||||||||||||
| Net deferred rent | — | 105 | — | 105 | 1.2% | N/A | N/A | |||||||||||||||||||||||||||||||||||||
Other (2) | 240 | 196 | 243 | (47) | (0.5)% | N/A | N/A | |||||||||||||||||||||||||||||||||||||
| Totals | 2,527 | $ | 16,895 | $ | 8,122 | $ | 8,773 | 100% | 93.9% | $1,495 | ||||||||||||||||||||||||||||||||||
_________________________________________________________________________________
(1) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI and pro-rata share under "Non-GAAP Financial
Measures and Definitions."
(2) Represents property in lease up.
14
BRT Apartments Corp. (NYSE: BRT)
Combined Portfolio Metrics (1)
Quarters ended September 30, 2024 and 2023
(dollars in thousands)
_____________________________________________________________________________________________________________________
| Three Months Ended September 30, | |||||||||||||||||
| 2024 | 2023 | % Change | |||||||||||||||
| Combined Revenues | $ | 29,389 | $ | 28,628 | 2.7 | % | |||||||||||
| Combined Operating Expenses | |||||||||||||||||
| Payroll | $ | 2,537 | $ | 2,492 | 1.8 | % | |||||||||||
| Real Estate taxes | 3,492 | 3,333 | 4.8 | % | |||||||||||||
| Management Fees | 809 | 802 | 0.9 | % | |||||||||||||
| Insurance | 1,455 | 1,255 | 15.9 | % | |||||||||||||
| Utilities | 1,865 | 1,726 | 8.1 | % | |||||||||||||
| Repairs and Maintenance | 1,686 | 1,736 | (2.9) | % | |||||||||||||
| Replacements | 834 | 683 | 22.1 | % | |||||||||||||
| Advertising, Leasing and Other | 1,047 | 1,035 | 1.2 | % | |||||||||||||
| Total Combined Operating Expenses | $ | 13,725 | $ | 13,062 | 5.1 | % | |||||||||||
| Total Combined Operating Income | $ | 15,664 | $ | 15,566 | 0.6 | % | |||||||||||
____________________________________________
(1) Please refer to Non-GAAP Financial Measures, Definitions and Reconciliations for definition of Combined Same Store and reconciliation of Net Operating
Income. Combined portfolio refers to the consolidated same store properties, the unconsolidated same store properties presented on a pro rata share basis, for all periods presented, with a total of 7,707 units, excluding a 240-unit multi-family property in lease up.
15
BRT Apartments Corp. (NYSE: BRT)
Combined Portfolio Metrics (1)
Nine Months Ended September 30, 2024 and 2023
(dollars in thousands)
____________________________________________________________________________________________________________________
| Nine Months Ended September 30, | |||||||||||||||||
| 2024 | 2023 | % Change | |||||||||||||||
| Combined Revenues | $ | 86,816 | $ | 84,780 | 2.4 | % | |||||||||||
| Combined Operating Expenses | |||||||||||||||||
| Payroll | $ | 7,384 | $ | 7,360 | 0.3 | % | |||||||||||
| Real Estate taxes | 10,551 | 10,038 | 5.1 | % | |||||||||||||
| Management Fees | 2,439 | 2,427 | 0.5 | % | |||||||||||||
| Insurance | 4,314 | 3,653 | 18.1 | % | |||||||||||||
| Utilities | 5,318 | 5,081 | 4.7 | % | |||||||||||||
| Repairs and Maintenance | 4,796 | 5,159 | (7.0) | % | |||||||||||||
| Replacements | 2,114 | 1,911 | 10.6 | % | |||||||||||||
| Advertising, Leasing and Other | 3,231 | 3,097 | 4.3 | % | |||||||||||||
| Total Combined Operating Expenses | $ | 40,147 | $ | 38,727 | 3.7 | % | |||||||||||
| Total Combined Operating Income | $ | 46,669 | $ | 46,054 | 1.3 | % | |||||||||||
________________________________________________
(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 for all periods presented, with a total of 7,707 units, excluding a 240-unit multi-family property in lease up.
16
BRT Apartments Corp. (NYSE: BRT)
Portfolio Table
As of September 30, 2024
___________________________________________________________________________________________
| Property | City | State | Year Built | Year Acquired | Property Age | Units | Q3 2024 Avg. Occupancy | Q3 2024 Avg. Rent per Occ. Unit | ||||||||||||||||||||||||
| Consolidated Properties - All 100% Owned | ||||||||||||||||||||||||||||||||
| Silvana Oaks | North Charleston | SC | 2010 | 2012 | 14 | 208 | 94.4% | $ | 1,514 | |||||||||||||||||||||||
| Avondale Station | Decatur | GA | 1954 | 2012 | 70 | 212 | 91.2% | 1,394 | ||||||||||||||||||||||||
| Newbridge Commons | Columbus | OH | 1999 | 2013 | 25 | 264 | 94.1% | 1,172 | ||||||||||||||||||||||||
| Brixworth at Bridgestreet | Huntsville | AL | 1985 | 2013 | 39 | 208 | 95.1% | 1,042 | ||||||||||||||||||||||||
| Avalon | Pensacola | FL | 2008 | 2014 | 16 | 276 | 93.8% | 1,504 | ||||||||||||||||||||||||
| Crossings of Bellevue | Nashville | TN | 1985 | 2014 | 39 | 300 | 96.3% | 1,439 | ||||||||||||||||||||||||
| Parkway Grande | San Marcos | TX | 2014 | 2015 | 10 | 192 | 95.1% | 1,309 | ||||||||||||||||||||||||
| Woodland Trails | LaGrange | GA | 2010 | 2015 | 14 | 236 | 94.0% | 1,392 | ||||||||||||||||||||||||
| Kilburn Crossing | Fredericksburg | VA | 2005 | 2016 | 19 | 220 | 96.8% | 1,714 | ||||||||||||||||||||||||
| Verandas at Alamo Ranch | San Antonio | TX | 2015 | 2016 | 9 | 288 | 92.4% | 1,134 | ||||||||||||||||||||||||
| Grove at River Place | Macon | GA | 1988 | 2016 | 36 | 240 | 89.7% | 952 | ||||||||||||||||||||||||
| Civic Center 1 | Southaven | MS | 2002 | 2016 | 22 | 392 | 96.8% | 1,278 | ||||||||||||||||||||||||
| Civic Center 2 | Southaven | MS | 2005 | 2016 | 19 | 384 | 93.4% | 1,358 | ||||||||||||||||||||||||
| Vanguard Heights | Creve Coeur | MO | 2016 | 2017 | 8 | 174 | 95.6% | 1,703 | ||||||||||||||||||||||||
| Jackson Square | Tallahassee | FL | 1996 | 2017 | 28 | 242 | 96.2% | 1,431 | ||||||||||||||||||||||||
| Woodland Apartments | Boerne | TX | 2007 | 2017 | 17 | 120 | 96.7% | 1,219 | ||||||||||||||||||||||||
| Magnolia Pointe | Madison | AL | 1991 | 2017 | 33 | 204 | 93.6% | 1,173 | ||||||||||||||||||||||||
| Bell's Bluff | W. Nashville | TN | 2019 | 2018 | 5 | 402 | 93.9% | 1,750 | ||||||||||||||||||||||||
| Crestmont at Thornblade | Greenville | SC | 1998 | 2018 | 26 | 266 | 95.9% | 1,388 | ||||||||||||||||||||||||
| Somerset at Trussville | Trussville | AL | 2007 | 2019 | 17 | 328 | 94.8% | 1,272 | ||||||||||||||||||||||||
| Abbotts Run | Wilmington | NC | 2001 | 2020 | 23 | 264 | 94.6% | 1,291 | ||||||||||||||||||||||||
| Weighted Avg./Total Consolidated | 23 | 5,420 | ||||||||||||||||||||||||||||||
| Properties owned by Unconsolidated Joint Ventures | % Ownership | |||||||||||||||||||||||||||||||
| Pointe at Lenox Park | Atlanta | GA | 1989 | 2016 | 35 | 271 | 95.1% | 1,530 | 74 | % | ||||||||||||||||||||||
| Gateway Oaks | Forney | TX | 2016 | 2016 | 8 | 313 | 94.7% | 1,423 | 50 | % | ||||||||||||||||||||||
| Mercer Crossing | Dallas | TX | 2015 | 2017 | 9 | 509 | 92.7% | 1,644 | 50 | % | ||||||||||||||||||||||
| Canalside Lofts | Columbia | SC | 2008 | 2017 | 16 | 374 | 94.4% | 1,470 | 32 | % | ||||||||||||||||||||||
| Landings of Carrier Parkway | Grand Prairie | TX | 2001 | 2018 | 23 | 281 | 91.3% | 1,341 | 50 | % | ||||||||||||||||||||||
| Canalside Sola | Columbia | SC | 2015 | 2018 | 9 | 339 | 94.6% | 1,724 | 46 | % | ||||||||||||||||||||||
| The Village at Lakeside | Auburn | AL | 1988 | 2019 | 36 | 200 | 98.8% | 1,173 | 80 | % | ||||||||||||||||||||||
| Weighted Avg./Total Unconsolidated | 17 | 2,287 | ||||||||||||||||||||||||||||||
| Weighted Avg./Total Portfolio | 21 | 7,707 | ||||||||||||||||||||||||||||||
| Lease up | ||||||||||||||||||||||||||||||||
| Stono Oaks | Johns Island | SC | 2023 | 2022 | 240 | 18 | % | |||||||||||||||||||||||||
17
BRT Apartments Corp. (NYSE: BRT)
APPENDIX
18
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 and rent concession 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.
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, legacy assets, 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.
19
BRT Apartments Corp. (NYSE: BRT)
Consolidated Same Store Comparisons (1)
Quarters ended September 30, 2024 and 2023
(dollars in thousands, except monthly rent amounts)
_____________________________________________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | 2024 | 2023 | % Change | 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 688 | $ | 2,647 | $ | 2,716 | (2.5) | % | $ | 1,418 | $ | 1,295 | 9.5 | % | $ | 1,229 | $ | 1,421 | (13.5) | % | |||||||||||||||||||||||||||||||||||||||||||
| Florida | 518 | 2,352 | 2,368 | (0.7) | % | 1,225 | 1,195 | 2.5 | % | 1,127 | 1,173 | (3.9) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 600 | 2,377 | 2,346 | 1.3 | % | 1,326 | 1,398 | (5.2) | % | 1,051 | 948 | 10.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Ohio | 264 | 981 | 941 | 4.3 | % | 515 | 400 | 28.8 | % | 466 | 541 | (13.9) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Virginia | 220 | 1,219 | 1,141 | 6.8 | % | 515 | 467 | 10.3 | % | 704 | 674 | 4.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| North Carolina | 264 | 1,059 | 1,056 | 0.3 | % | 460 | 441 | 4.3 | % | 599 | 615 | (2.6) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 474 | 2,181 | 2,136 | 2.1 | % | 1,268 | 1,102 | 15.1 | % | 913 | 1,034 | (11.7) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Tennessee | 702 | 3,509 | 3,594 | (2.4) | % | 1,473 | 1,479 | (0.4) | % | 2,036 | 2,115 | (3.7) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 740 | 2,810 | 2,807 | 0.1 | % | 1,287 | 1,185 | 8.6 | % | 1,523 | 1,622 | (6.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Mississippi | 776 | 3,151 | 3,084 | 2.2 | % | 1,119 | 1,033 | 8.3 | % | 2,032 | 2,051 | (0.9) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Missouri | 174 | 948 | 953 | (0.5) | % | 448 | 441 | 1.6 | % | 500 | 512 | (2.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net deferred rent | — | 539 | — | — | — | — | 539 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Totals | 5,420 | $ | 23,773 | $ | 23,142 | 2.7 | % | $ | 11,054 | $ | 10,436 | 5.9 | % | $ | 12,719 | $ | 12,706 | 0.1 | % | |||||||||||||||||||||||||||||||||||||||||||
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 91.7 | % | 93.4 | % | (1.8) | % | $ | 1,243 | $ | 1,245 | (0.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida | 94.9 | % | 95.5 | % | (0.6) | % | 1,469 | 1,459 | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 94.2 | % | 92.4 | % | 1.9 | % | 1,208 | 1,193 | 1.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ohio | 94.1 | % | 96.8 | % | (2.8) | % | 1,172 | 1,102 | 6.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Virginia | 96.8 | % | 94.5 | % | 2.4 | % | 1,714 | 1,635 | 4.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| North Carolina | 95.0 | % | 95.3 | % | (0.3) | % | 1,291 | 1,272 | 1.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 95.2 | % | 96.1 | % | (0.9) | % | 1,443 | 1,400 | 3.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tennessee | 95.0 | % | 94.4 | % | 0.6 | % | 1,615 | 1,658 | (2.6) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 95.1 | % | 93.3 | % | 1.9 | % | 1,180 | 1,197 | (1.4) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mississippi | 95.0 | % | 96.1 | % | (1.1) | % | 1,317 | 1,281 | 2.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Missouri | 95.6 | % | 94.8 | % | 0.8 | % | 1,703 | 1,738 | (2.0) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average | 94.5 | % | 94.4 | % | 0.1 | % | $ | 1,363 | $ | 1,352 | 0.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
(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."
20
BRT Apartments Corp. (NYSE: BRT)
Consolidated Same Store Comparisons (1)
Nine Months Ended September 30, 2024 and 2023
(dollars in thousands, except monthly rent amounts)
____________________________________________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | 2024 | 2023 | % Change | 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 688 | $ | 7,958 | $ | 7,947 | 0.1 | % | $ | 4,171 | $ | 3,848 | 8.4 | % | $ | 3,787 | $ | 4,099 | (7.6) | % | |||||||||||||||||||||||||||||||||||||||||||
| Florida | 518 | 7,062 | 7,094 | (0.5) | % | 3,496 | 3,377 | 3.5 | % | 3,566 | 3,717 | (4.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 600 | 6,987 | 6,896 | 1.3 | % | 3,859 | 4,112 | (6.2) | % | 3,128 | 2,784 | 12.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Ohio | 264 | 2,935 | 2,807 | 4.6 | % | 1,434 | 1,259 | 13.9 | % | 1,501 | 1,548 | (3.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Virginia | 220 | 3,609 | 3,434 | 5.1 | % | 1,518 | 1,351 | 12.4 | % | 2,091 | 2,083 | 0.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Missouri | 474 | 2,826 | 2,830 | (0.1) | % | 1,302 | 1,303 | (0.1) | % | 1,524 | 1,527 | (0.2) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 702 | 8,484 | 8,406 | 0.9 | % | 3,879 | 3,694 | 5.0 | % | 4,605 | 4,712 | (2.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| North Carolina | 174 | 3,198 | 3,119 | (0.1) | % | 1,336 | 1,257 | (0.1) | % | 1,862 | 1,862 | (0.2) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Mississippi | 740 | 9,370 | 9,104 | 0.9 | % | 3,312 | 3,208 | 5.0 | % | 6,058 | 5,896 | (2.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 264 | 6,619 | 6,409 | 2.5 | % | 3,564 | 3,354 | 6.3 | % | 3,055 | 3,055 | 0.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Tennessee | 776 | 10,117 | 10,548 | 2.9 | % | 4,397 | 4,435 | 3.2 | % | 5,720 | 6,113 | 2.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net deferred Rent | — | 952 | — | — | — | 952 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Totals | 5,420 | $ | 70,117 | $ | 68,594 | 2.2 | % | $ | 32,268 | $ | 31,198 | $31,198 | 3.4 | % | $ | 37,849 | $ | 37,398 | 1.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 91.5 | % | 93.6 | % | (2.2) | % | $ | 1,241 | $ | 1,217 | 2.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida | 94.8 | % | 95.2 | % | (0.4) | % | 1,464 | 1,454 | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 93.4 | % | 92.4 | % | 1.1 | % | 1,198 | 1,210 | (1.0) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ohio | 94.9 | % | 97.1 | % | (2.3) | % | 1,155 | 1,094 | 5.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Virginia | 96.4 | % | 96.0 | % | 0.4 | % | 1,690 | 1,620 | 4.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 95.1 | % | 95.4 | % | (0.3) | % | 1,453 | 1,396 | 4.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tennessee | 93.5 | % | 94.0 | % | (0.5) | % | 1,571 | 1,626 | (3.4) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Missouri | 95.1 | % | 94.7 | % | 0.4 | % | 1,697 | 1,709 | (0.7) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 95.2 | % | 94.0 | % | 1.3 | % | 1,192 | 183 | 551.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| North Carolina | 94.9 | % | 94.9 | % | 0.0 | % | 1,282 | 1,243 | 3.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mississippi | 94.8 | % | 95.5 | % | (0.7) | % | 1,308 | 1,258 | 4.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average | 94.1 | % | 94.4 | % | (0.3) | % | 1,353 | 1,337 | 1.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
_______________________________
(1) See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
(2) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI under "Non-GAAP Financial Measures and
Definitions."
21
BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons (1)
Quarters ended September 30, 2024 and 2023
BRT Pro-rata Share
(dollars in thousands, except monthly rent amounts)
________________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | 2024 | 2023 | % Change | 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 1,103 | $ | 2,628 | $ | 2,663 | (1.3) | % | $ | 1,385 | $ | 1,369 | 1.2 | % | $ | 1,243 | $ | 1,294 | (3.9) | % | |||||||||||||||||||||||||||||||||||||||||||
| Georgia | 271 | 975 | 973 | 0.2 | % | 473 | 473 | 0.0 | % | 502 | 500 | 0.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 713 | 1,358 | 1,289 | 5.4 | % | 510 | 495 | 3.0 | % | 848 | 794 | 6.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 200 | 610 | 561 | 8.7 | % | 303 | 289 | 4.8 | % | 307 | 272 | 12.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 45 | — | 0.0 | % | — | — | 0.0 | % | 45 | — | 0.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Totals | 2,287 | $ | 5,616 | $ | 5,486 | 2.4 | % | $ | 2,671 | $ | 2,626 | 1.7 | % | $ | 2,945 | $ | 2,860 | 3.0 | % | |||||||||||||||||||||||||||||||||||||||||||
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 92.7 | % | 93.6 | % | (1.0) | % | $ | 1,504 | $ | 1,539 | (2.3) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 95.1 | % | 95.7 | % | (0.6) | % | 1,530 | 1,541 | (0.7) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 94.5 | % | 94.6 | % | (0.1) | % | 1,591 | 1,481 | 7.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 98.8 | % | 97.3 | % | 1.5 | % | 1,173 | 1,084 | 8.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average | 94.1 | % | 94.4 | % | (0.3) | % | $ | 1,504 | $ | 1,480 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
________________________________
(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."
22
BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons (1)
Nine Months Ended September 30, 2024 and 2023
BRT Pro-rata Share
(dollars in thousands, except monthly rent amounts)
_______________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | 2024 | 2023 | % Change | 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 1,103 | $ | 7,889 | $ | 7,839 | 0.6 | % | $ | 4,113 | $ | 3,878 | 6.1 | % | $ | 3,776 | $ | 3,961 | (4.7) | % | |||||||||||||||||||||||||||||||||||||||||||
| Georgia | 271 | 2,906 | 2,857 | 1.7 | % | 1,424 | 1,398 | 1.9 | % | 1,482 | 1,459 | 1.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 713 | 4,013 | 3,827 | 4.9 | % | 1,487 | 1,408 | 5.6 | % | 2,526 | 2,419 | 4.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 200 | 1,786 | 1,663 | 7.4 | % | 855 | 845 | 1.2 | % | 931 | 818 | 13.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 105 | — | 0.0 | % | — | — | 0.0 | % | 105 | $ | — | 0.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Totals | 2,287 | $ | 16,699 | $ | 16,186 | 3.2 | % | $ | 7,879 | $ | 7,529 | 4.6 | % | $ | 8,820 | $ | 8,657 | 1.9 | % | |||||||||||||||||||||||||||||||||||||||||||
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 92.6 | % | 92.7 | % | (0.1) | % | $ | 1,510 | $ | 1,530 | (1.3) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 94.3 | % | 96.2 | % | (2.0) | % | 1,534 | 1,495 | 2.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 94.7 | % | 94.1 | % | 0.6 | % | 1,558 | 1,474 | 5.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 97.8 | % | 98.1 | % | (0.3) | % | 1,149 | 1,058 | 8.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average | 93.9 | % | 94.0 | % | (0.1) | % | $ | 1,495 | $ | 1,465 | 2.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
___________________________________
(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."
23
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, | ||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| GAAP Net ( loss) income attributable to common stockholders | $ | (2,205) | $ | (1,494) | $ | (7,721) | $ | 5,610 | ||||||||||||||||||
| Less: Interest and other Income | (219) | (342) | (408) | (405) | ||||||||||||||||||||||
| Add: Interest expense | 5,745 | 5,581 | 16,768 | 16,577 | ||||||||||||||||||||||
| General and administrative | 3,811 | 4,017 | 11,776 | 11,920 | ||||||||||||||||||||||
| Depreciation and amortization | 6,499 | 6,544 | 19,400 | 22,095 | ||||||||||||||||||||||
| Provision for taxes | (310) | (122) | (297) | 5 | ||||||||||||||||||||||
| Less: Gain on sale of real estate | — | (604) | — | (604) | ||||||||||||||||||||||
| Less: Equity in earnings from sale of unconsolidated joint venture properties | — | — | — | (14,744) | ||||||||||||||||||||||
| Insurance recovery | — | (261) | — | (476) | ||||||||||||||||||||||
| Less: Gain on insurance recoveries | — | — | — | (240) | ||||||||||||||||||||||
| Adjust for: Equity in earnings of unconsolidated joint venture properties | (369) | (426) | (986) | (1,705) | ||||||||||||||||||||||
| Add: Net income attributable to non-controlling interests | 38 | 34 | 109 | 106 | ||||||||||||||||||||||
| Net Operating Income | $ | 12,990 | $ | 12,927 | $ | 38,641 | $ | 38,139 | ||||||||||||||||||
| Less: Non-same store Net Operating Income | 271 | 221 | $ | 792 | $ | 743 | ||||||||||||||||||||
| Same store Net Operating Income | $ | 12,719 | $ | 12,706 | $ | 37,849 | $ | 37,396 | ||||||||||||||||||
24
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, | ||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
| BRT equity in earnings from joint ventures | $ | 369 | $ | 426 | $ | 986 | $ | 16,449 | ||||||||||||||||||
| Add: Interest expense | 1,244 | 1,134 | 3,693 | 3,607 | ||||||||||||||||||||||
| Depreciation | 1,379 | 1,306 | 4,119 | 3,984 | ||||||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | 212 | ||||||||||||||||||||||
| Less: Gain on insurances recoveries | — | — | — | (30) | ||||||||||||||||||||||
| Gain on sale of real estate | — | — | — | (14,744) | ||||||||||||||||||||||
| Equity in earnings of joint ventures | (1) | (6) | (25) | (119) | ||||||||||||||||||||||
| Net Operating Income | $ | 2,991 | $ | 2,860 | $ | 8,773 | $ | 9,359 | ||||||||||||||||||
| Less: Non-same store Net Operating Income | $ | 46 | $ | — | (47) | 701 | ||||||||||||||||||||
| Same store Net Operating Income | $ | 2,945 | $ | 2,860 | $ | 8,820 | $ | 8,658 | ||||||||||||||||||
| Consolidated same store Net Operating Income | $ | 12,719 | $ | 12,706 | $ | 37,849 | $ | 37,396 | ||||||||||||||||||
| Unconsolidated same store Net Operating Income | 2,945 | 2,860 | 8,820 | 8,658 | ||||||||||||||||||||||
| Combined same store Net Operating Income | $ | 15,664 | $ | 15,566 | $ | 46,669 | $ | 46,054 | ||||||||||||||||||
25
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, 2024 to the BRT pro-rata information presented below:
| Three Months Ended September 30, 2024 | ||||||||||||||||||||
| Total | BRT's Pro Rata Share | Partner Share | ||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Rental and other revenue | $ | 11,611 | $ | 5,741 | $ | 5,870 | ||||||||||||||
| Total revenues | 11,611 | 5,741 | 5,870 | |||||||||||||||||
| Expenses: | ||||||||||||||||||||
| Real estate operating expenses | 5,578 | 2,750 | 2,828 | |||||||||||||||||
| Interest expense | 2,898 | 1,244 | 1,654 | |||||||||||||||||
| Depreciation | 2,916 | 1,379 | 1,537 | |||||||||||||||||
| Total expenses | 11,392 | 5,373 | $ | 6,019 | ||||||||||||||||
| Total revenues less total expenses | 219 | 368 | (149) | |||||||||||||||||
| Other equity earnings | 5 | 1 | 4 | |||||||||||||||||
| Net income | $ | 224 | 369 | $ | (145) | |||||||||||||||
| 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 | 1,306 | 1,262 | |||||||||||||||||
| Total expenses | 9,803 | 5,066 | $ | 4,737 | ||||||||||||||||
| Total revenues less total expenses | 833 | 420 | 413 | |||||||||||||||||
| Other equity earnings | 3 | 6 | (3) | |||||||||||||||||
| Net income | $ | 836 | $ | 426 | $ | 410 | ||||||||||||||
26
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 report on Form 10-Q to the BRT pro rata information presented here in this supplemental.
| Nine Months Ended September 30, 2024 | ||||||||||||||||||||
| Total | BRT's Pro Rata Share | Partner Share | ||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Rental and other revenue | $ | 33,529 | $ | 16,895 | $ | 16,634 | ||||||||||||||
| Total revenues | 33,529 | 16,895 | 16,634 | |||||||||||||||||
| Expenses: | ||||||||||||||||||||
| Real estate operating expenses | 16,462 | 8,122 | 8,340 | |||||||||||||||||
| Interest expense | 8,508 | 3,693 | 4,815 | |||||||||||||||||
| Depreciation | 8,714 | 4,119 | 4,595 | |||||||||||||||||
| Total expenses | 33,684 | 15,934 | $ | 17,750 | ||||||||||||||||
| Total revenues less total expenses | (155) | 961 | (1,116) | |||||||||||||||||
| Other equity earnings | 26 | 25 | 1 | |||||||||||||||||
| Net income | $ | (129) | $ | 986 | $ | (1,115) | ||||||||||||||
| 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 | — | |||||||||||||||||
| 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 | |||||||||||||||
27
BRT Apartments Corp. (NYSE: BRT)
Balance Sheet of Unconsolidated Joint Venture Entities
(dollars in thousands)
_____________________________________________________________________________________________________________________
At September 30, 2024, the Company held interests in unconsolidated joint ventures that own 7 multi-family properties (the "Unconsolidated Properties") and an interest in a multi-family property that is in lease up. The condensed balance sheet below present information regarding such properties:
| September 30, 2024 | ||||||||||||||||||||
| TOTAL | BRT's Pro Rata Share | Partner Share | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Real estate properties, net of accumulated depreciation | $ | 320,839 | $ | 144,701 | $ | 176,138 | ||||||||||||||
| Cash and cash equivalents | 6,104 | 2,685 | 3,419 | |||||||||||||||||
| Other assets | 8,951 | 4,441 | 4,510 | |||||||||||||||||
| Total Assets | $ | 335,894 | $ | 151,827 | $ | 184,067 | ||||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Mortgages payable, net of deferred costs | 251,982 | 116,167 | 135,815 | |||||||||||||||||
| Accounts payable and accrued liabilities | 9,046 | 4,225 | 4,821 | |||||||||||||||||
| Total Liabilities | 261,028 | 120,392 | 140,636 | |||||||||||||||||
| Commitments and contingencies | ||||||||||||||||||||
| Equity: | ||||||||||||||||||||
| Total unconsolidated joint venture equity | 74,866 | 31,436 | 43,430 | |||||||||||||||||
| Total Liabilities and Equity | $ | 335,894 | $ | 151,828 | $ | 184,066 | ||||||||||||||
28