brt-20230314
false000001484600000148462022-03-142022-03-14

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT


Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): March 14, 2023

BRT APARTMENTS CORP.
(Exact name of Registrant as specified in charter)
Maryland001-0717213-2755856
(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 classTrading Symbol(s)Name of each exchange on which registered
Common StockBRTNYSE

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 March 14, 2023, we issued a (i) press release announcing our results of operations for the three months and twelve months ended December 31, 2022 (the "Covered Periods") and related matters and (ii) supplemental financial information for the Covered Periods. 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 and are incorporated herein by reference. 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, or 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
Press release dated March 14, 2023.
Supplemental Financial Information.
101Cover 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.
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document




SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


BRT APARTMENTS CORP.
March 14, 2023By: /s/ George Zweier
George Zweier, Vice President
and Chief Financial Officer





Exhibit 99.1


BRT APARTMENTS CORP. REPORTS FOURTH QUARTER AND FULL YEAR 2022 RESULTS

– Issues Full Year 2023 Guidance –

Great Neck, New York – March 14, 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 fourth quarter and year ended December 31, 2022, and issued guidance for expected full year 2023 results.

Highlights
•Reported results for the fourth quarter of 2022 of a net loss of $4.2 million, or $(0.22) per diluted share, Funds from Operations, or FFO, of $0.40 per diluted share and Adjusted Funds from Operations, or AFFO, of $0.37 per diluted share.
•Reported results for 2022 of net income of $50.0 million, or $2.66 per diluted share, FFO of $1.24 per diluted share and AFFO of $1.52 per diluted share.
•Equity in earnings of unconsolidated joint ventures was $580,000 in the fourth quarter of 2022 and $1.9 million in 2022.
•Combined Portfolio NOI increased 0.7% for the fourth quarter and increased 11.3% for 2022 when compared with the prior-year periods.
•Completed joint venture partner buyouts of $105.9 million in 11 multi-family properties totaling 2,844 units in 2022.
•Completed the disposition of four joint venture multi-family properties totaling 1,072 units in 2022, recording an aggregate gain of $64.5 million.
•Raised equity proceeds of $9.9 million during 2022 from the sale of 447,815 shares of common stock through the at-the-market (ATM) program.
•Implemented in late 2022 a new master insurance program across 17 wholly owned properties comprising 4,316 units in 10 states, representing 80% of the Company’s wholly owned portfolio (expressed as a percentage of total units).
•In February 2023, the Company closed a $21.2 million loan secured by Silvana Oaks in North Charleston, SC and used the proceeds to fully repay its outstanding borrowings on the credit facility.
•In March 2023, an unconsolidated joint venture in which the Company owns a 50% interest agreed to sell a multifamily property totaling 494 units. It is estimated that this sale, when completed in the second quarter of 2023, will result in a gain to BRT of $14.3 million.
•In March 2023, the Company entered into an agreement to purchase a multifamily property totaling 238 units for a purchase price of approximately $62.5 million, including the assumption of approximately $32 million in mortgage debt. It is estimated this acquisition will be completed in the fourth quarter of 2023.
•Declared a dividend of $0.25 per share for the first quarter of 2023.
•Issued full year 2023 guidance ranges for net income per diluted share of $0.09 to $0.20, FFO per diluted share of $1.08 to $1.19, and AFFO per diluted share of $1.50 to $1.61 along with accompanying guidance assumptions.

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."

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Jeffrey A. Gould, President and Chief Executive Officer stated, “We have remained intensely focused on our goals to grow the wholly owned portfolio, improve the balance sheet, drive NOI and create value for our stockholders. The strength of our portfolio and the fundamentals within our markets were evident throughout the year with full year Combined Portfolio NOI up 11.3%, average combined monthly rental income up 11.6% and average combined occupancy remained relatively steady at 95.9%. BRT is a stronger company than a year ago with the capacity to take advantage of what the environment presents in a very disciplined and accretive manner.”

Commenting on BRT’s 2023 guidance, Mr. Gould added, “Our outlook for 2023 reflects the natural extension of the strategic decisions we set in motion over the past two years. The dispositions completed during 2022 helped us realize IRRs of 19% to 41% on those properties and allowed us to re-allocate capital toward funding nearly $106 million of partner buyouts. The disposition of another joint venture that we expect to complete in the second quarter should result in an IRR of 22% over a seven-year hold with approximately $19 million in net proceeds available to deploy for new investment opportunities such as the property acquisition in Richmond, VA in late 2023. We have also been able to source attractive capital to reduce exposure to variable rate debt without sacrificing our ability to remain free of debt maturities before 2025. While the impact from the significant number of partner buyouts is reflected in our 2023 guidance, we believe we can derive even greater benefits from this growth in our wholly owned portfolio through consolidating control of and investments in these properties.”

Fourth Quarter Financial and Operating Results
•Net loss attributable to common stockholders for the quarter ended December 31, 2022 was $4.2 million, or $0.22 per diluted share, compared to net loss attributable to common stockholders of $1.3 million, or $0.08 per diluted share, for the corresponding 2021 quarter.
•FFO was $7.6 million, or $0.40 per diluted share, in the current quarter, compared to $6.3 million, or $0.35 per diluted share, in the corresponding 2021 quarter.
•AFFO was $7.0 million, or $0.37 per diluted share, in the fourth quarter of 2022, compared to AFFO of $7.5 million, or $0.41 per diluted share, in the corresponding 2021 quarter.
•Equity in earnings of unconsolidated joint ventures for the current quarter was $580,000 compared to $1.8 million in the corresponding quarter of the prior year.
•Combined Portfolio NOI in the current quarter increased by 0.7% to $15.5 million.
•Diluted per share net income, FFO and AFFO during the quarter ended December 31, 2022 reflect the approximate 698,000 increase in weighted average shares of common stock outstanding, primarily due to stock issuances pursuant to the Company’s at-the-market offering and equity incentive programs.

Full Year 2022 Financial and Operating Results
•Net income attributable to common stockholders in 2022 was $50.0 million, or $2.66 per diluted share, compared to net income of $29.1 million, or $1.62 per diluted share, in 2021.
•FFO was $23.2 million, or $1.24 per diluted share, in 2022, compared to $17.4 million, or $0.97 per diluted share, in 2021.
•AFFO was $28.4 million, or $1.52 per diluted share, in 2022, compared to $23.8 million, or $1.33 per diluted share, in 2021.
•Equity in earnings from sales of unconsolidated ventures in 2022 was $64.5 million in 2022 compared with $35.0 million in 2021.
•Equity in earnings of unconsolidated joint ventures in 2022 was $1.9 million compared to a loss of $4.2 million in 2021.
•Combined Portfolio NOI in 2022 increased by 11.3% to $57.8 million.
•Diluted per share net income, FFO and AFFO for the year ended December 31, 2022 reflect the approximate 846,000 increase in the weighted average share count due to stock issuances pursuant to BRT’s at-the-market equity sales program and to a lesser extent, issuances pursuant to the equity incentive program.

Transaction and Financing Activity
•As previously reported, on October 31, 2022, the mortgage debt on Silvana Oaks in North Charleston, SC in the amount of $14.9 million matured and was paid off with borrowings on the Company’s credit facility.
•On February 24, 2023, the Company closed on a new, interest-only mortgage secured by Silvana Oaks in the amount of $21.2 million at a rate of 4.45% and a maturity date of February 2033. The proceeds from the financing were used to pay off in full the outstanding borrowings on the Company’s $60 million credit facility.
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•On March 13, 2023, the unconsolidated joint venture that owns Chatham Court and Reflections, a 494-unit multi-family property located in Dallas, TX, and in which the Company has a 50% interest, entered into a contract to sell such property. BRT estimates that its share of the gain from this sale will be approximately $14.3 million and that its share of the related early extinguishment of debt charge will be $167,000. In 2022, this property accounted for $753,000 of equity in earnings from unconsolidated joint ventures. The Company anticipates that the closing of this transaction, which is subject to customary closing conditions, will be completed in the quarter ending June 30, 2023, although it can provide no assurance that this transaction will be completed. BRT expects to use the net proceeds to fund future investment opportunities.
•In March 2023, the Company entered into an agreement to acquire a 238-unit multifamily property constructed in 2019 and located in Richmond, VA, for a purchase price of approximately $62.5 million. The purchase price includes the assumption of approximately $32 million of mortgage debt bearing an interest rate of 3.34% and maturing in 2061.The purchase is subject to the satisfaction of various conditions, including the completion, to BRT’s satisfaction, of its due diligence investigation, as well as the approval by the mortgage lender of the Company’s assumption of the mortgage debt. BRT anticipates that this transaction will be completed in the fourth quarter of 2023.

2022 Partner Buyouts
As previously reported, in 2022, BRT completed, for an aggregate purchase price of $105.9 million after giving effect to its partners' promote interests, partner buyouts at 11 properties with an aggregate of 2,844-units. As a result of the completion of these purchases, all of these properties are wholly owned by BRT.

Debt Metrics and Liquidity
At December 31, 2022, BRT’s available liquidity was approximately $61.3 million, comprised of $20.3 million of cash and cash equivalents and $41.0 million available under its credit facility. The Company’s debt to enterprise value was 62% at year end compared to 61% at December 31, 2021.

At March 1, 2023, BRT’s available liquidity was approximately $75.3 million, including $15.3 million of cash and cash equivalents and up to $60.0 million available under its credit facility. At March 1, 2023, the interest rate on the facility was 7.75%.

First Quarter 2023 Dividend
The Board of Directors declared a quarterly dividend on the Company’s common stock of $0.25 per share. The dividend is payable on April 4, 2023, to stockholders of record at the close of business on March 27, 2023.

Guidance for Full Year 2023
The Company issued its full year 2023 guidance ranges for net income, FFO and AFFO per diluted share as well as the accompanying guidance assumptions, which can be found in the tables below.


2023 Full Year EPS, FFO and AFFO Guidance Per Share (1)(2)
Low End
Midpoint
High End
Earnings per share (diluted)
$0.09
$0.15
$0.20
FFO per share of common stock (diluted) (3)
$1.08
$1.14
$1.19
AFFO per share of common stock (diluted) (3)
$1.50
$1.56
$1.61











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Guidance Reconciliation
Low End
Midpoint
High End
Net income 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
0.00
0.00
0.00
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 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 share of common stock (diluted)
$1.50
$1.56
$1.61


2023 Combined Portfolio Guidance Assumptions (2)(4)
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 (5)
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

1.This guidance including all assumptions presented constitutes forward-looking information. Actual full year 2023 EPS, FFO, and AFFO could vary significantly from the projections presented.
2.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).
3.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."
4.Combined Portfolio includes 28 properties and 7,707 units. Property assumptions exclude Chatham Court, the property that is under contract to sell, and the property in Richmond, VA that is under contract to purchase.
5.Real estate taxes and insurance are increasing 9.8% and 50.4% at the midpoint, respectively. The insurance increase is primarily due to the decision to implement a master insurance program effective Q4 2022, which replaced policies at 17 properties which were scheduled to expire throughout 2023. This decision will result in the recognition of higher insurance expense at an earlier point in 2023. We believe that increases in insurance expense in 2024 and beyond will be more in line with the market.

Conference Call and Webcast Information
The Company will host a conference call and webcast to review its financial results and its 2023 guidance with investors and other interested parties at 9:00 a.m. ET on Wednesday, March 15, 2023. To participate in the conference call, callers from the United States and Canada should dial 1-877-300-8521, and international callers should dial 1-412-317-6026, ten minutes prior to
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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 Wednesday, March 15, 2023 through 11:59 p.m. ET on Wednesday, March 29, 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 10175151.

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 “Investor Relations - Financial Statements and SEC Filings.”

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, 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 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 and partnership interest, and (3) 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 29 properties totaling 8,201 units for the fourth quarter ended December 31, 2022, includes 28 properties totaling 7,799 units for the year ended December 31, 2022, and includes 28 properties totaling 7,707 units for the year ending December 31, 2023.

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.

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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: 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,
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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 December 31, 2022, BRT owns or has interests in 29 multi-family properties with 8,201 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-K to be filed with the Securities and Exchange Commission for the year ended December 31, 2022, and the supplemental disclosures regarding the quarter and the year on the investor relations section of the Company’s website at: https://brtapartments.com/investor-relations. The Form 10-K 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: [email protected]
www.BRTapartments.com
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BRT APARTMENTS CORP. AND SUBSIDIARIES
CONDENSED BALANCE SHEETS
(Dollars in thousands)

December 31, 2022December 31, 2021
ASSETS
Real estate properties, net of accumulated depreciation$651,603 $293,550 
Investment in unconsolidated joint ventures42,576 112,347 
Cash and cash equivalents20,281 32,339 
Restricted cash872 6,582 
Other assets16,786 10,341 
Real estate property held for sale— 4,379 
Total Assets$732,118 $459,538 
LIABILITIES AND EQUITY
Mortgages payable, net of deferred costs$403,792 $199,877 
Junior subordinated notes, net of deferred costs37,123 37,103 
Credit facility18,502  
Accounts payable and accrued liabilities22,631 19,607 
Total Liabilities482,048 256,587 
Total BRT Apartments Corp. stockholders’ equity250,088 202,956 
Non-controlling interests(18)(5)
Total Equity250,070 202,951 
Total Liabilities and Equity$732,118 $459,538 



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BRT APARTMENTS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
Three Months Ended December 31,
(unaudited)		Twelve months Ended December 31,
2022202120222021
Revenues:
  Rental and other revenue$22,711 $10,279 $70,515 $32,041 
  Other income— 4 12 16 
  Total revenues22,711 10,283 70,527 32,057 
Expenses:
   Real estate operating expenses10,262 4,515 30,558 14,202 
   Interest expense5,520 1,953 15,514 6,757 
   General and administrative3,815 3,239 14,654 12,621 
    Impairment charge— — — 520 
   Depreciation8,031 3,285 24,812 8,025 
    Total expenses27,628 12,992 85,538 42,125 
Total revenues less total expenses(4,917)(2,709)(15,011)(10,068)
Equity in earnings (loss) of unconsolidated joint ventures580 1,825 1,895 (4,208)
Equity in earnings from sale of unconsolidated joint venture properties— — 64,531 34,982 
Gain on sale of real estate— — 6 7,693 
Casualty loss(850)— (850)— 
Insurance recovery of casualty loss850 — 850 — 
Gain on insurance recovery— — 62 — 
Gain on sale of partnership interest— 388 — 2,632 
Loss on extinguishment of debt— (673)(563)(1,575)
(Loss) income from continuing operations(4,337)(1,169)50,920 29,456 
Provision for taxes(155)51 821 206 
Net income (loss) from continuing operations, net of taxes(4,182)(1,220)50,099 29,250 
(Income) attributable to non-controlling interests(37)(34)(144)(136)
Net income (loss) attributable to common stockholders$(4,219)$(1,254)$49,955 $29,114 
Per share amounts attributable to common stockholders:
Basic$(0.22)$(0.08)$2.67 $1.63 
Diluted$(0.22)$(0.08)$2.66 $1.62 
Funds from operations - Note 1$7,594 $6,333 $23,234 17,429 
Funds from operations per common share - diluted - Note 2$0.40 $0.35 $1.24 $0.97 
Adjusted funds from operations - Note 1$6,994 $7,542 $28,350 $23,811 
Adjusted funds from operations per common share - diluted -Note 2$0.37 $0.41 $1.52 $1.33 
Weighted average number of common shares outstanding:
Basic18,004,715 17,317,596 17,793,035 17,017,690 
Diluted18,004,715 17,317,596 17,852,951 17,084,642 

9



BRT APARTMENTS CORP. AND SUBSIDIARIES
FUNDS FROM OPERATIONS
ADJUSTED FUNDS FROM OPERATIONS
(Unaudited)
(Dollars in thousands, except per share data)


Three Months Ended December 31,Twelve months Ended December 31,
2022202120222021
Note 1:
Funds from operations is summarized in the following table:
GAAP Net (loss) income attributable to common stockholders$(4,219)$(1,254)$49,955 $29,114 
Add: depreciation of properties8,031 3,285 24,812 8,025 
Add: our share of depreciation in unconsolidated joint venture properties1,443 4,694 10,677 23,083 
Add: impairment charge — — — 520 
Add: our share of impairment charge in unconsolidated joint venture properties1,493 — 1,493 2,010 
Add: casualty loss850 — 850 — 
Deduct: gain on sales of real estate and partnership interests— (388)(6)(10,325)
Deduct: our share of earnings in earnings from sale of unconsolidated joint
             venture properties 		— — (64,531)(34,982)
Adjustment for non-controlling interests(4)(4)(16)(16)
   NAREIT Funds from operations attributable to common stockholders7,594 6,333 23,234 17,429 
Adjust for: straight-line rent accruals6 12 24 (18)
Add: loss on extinguishment of debt— 673 563 1,575 
Add: our share of loss on extinguishment of debt from unconsolidated joint
        venture properties		— — 1,880 4,581 
Add: amortization of restricted stock and RSU expense1,304 991 4,487 2,941 
Add: amortization of deferred mortgage and debt costs240 80 628 295 
Add: our share of deferred mortgage costs from unconsolidated joint venture properties28 103 227 542 
Add: amortization of fair value adjustment for mortgage debt166 — 148 — 
Less: insurance recovery of casualty loss(850)— (850)— 
Less: our share of insurance recovery from unconsolidated joint ventures(1,493)— (1,493)(2,010)
Less: gain on insurance recovery— — (62)— 
Less: our share of gain on insurance proceeds from unconsolidated joint venture
         properties		— (648)(432)(1,528)
Adjustment for non-controlling interests(1)(2)(4)4 
    Adjusted funds from operations attributable to common shareholders$6,994 $7,542 $28,350 $23,811 


10


BRT APARTMENTS CORP. AND SUBSIDIARIES
FUNDS FROM OPERATIONS
ADJUSTED FUNDS FROM OPERATIONS
(Unaudited)
(Dollars in thousands, except per share data)

Three Months Ended December 31,Twelve months Ended December 31,
2022202120222021
Note 2:
Funds from operations per share is summarized in the following table:
Net income attributable to common stockholders$(0.22)$(0.08)$2.66 $1.62 
Add: depreciation of properties0.42 0.19 1.33 0.45 
Add: our share of depreciation from unconsolidated joint venture properties0.08 0.26 0.57 1.29 
Add: impairment charge— — — 0.03 
Add: impairment charge - our share of unconsolidated joint ventures0.08 — 0.080.11
Add: casualty loss0.04 — 0.05 — 
Deduct: gain on sales of real estate and partnership interest— (0.02)— (0.58)
Deduct: our share of earnings from sale of unconsolidated joint venture properties— — (3.45)(1.95)
Adjustment for non-controlling interests— — — — 
   NAREIT Funds from operations per common share - diluted0.40 0.35 1.24 0.97 
Adjustments for straight line rent accruals— — — — 
Add: loss on extinguishment of debt— 0.04 0.03 0.09 
Add: our share of loss on extinguishment of debt from unconsolidated joint ventures— — 0.10 0.26 
Add: amortization of restricted stock and RSU expense0.07 0.05 0.25 0.16 
Add: amortization of deferred mortgage and debt costs0.01 — 0.03 0.02 
Add: our share of amortization of deferred mortgage and debt costs from
         unconsolidated ventures		— 0.01 0.01 0.03 
Add: amortization of fair value adjustment for mortgage debt0.01 — 0.01 — 
Less: insurance recovery of casualty loss(0.04)— (0.05)— 
Deduct: our share of insurance recovery from unconsolidated joint ventures(0.08)— (0.08)(0.11)
Deduct: gain on insurance recovery— — — — 
Deduct: our share of gain on insurance proceeds from unconsolidated joint ventures— (0.04)(0.02)(0.09)
Adjustments for non-controlling interests — — — — 
    Adjusted funds from operations per common share - diluted$0.37 $0.41 $1.52 $1.33 
Diluted shares outstanding for FFO and AFFO18,938,807 18,240,532 18,782,695 17,936,465 

11


BRT APARTMENTS CORP. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS TO NOI
(Dollars in thousands, except per share data)

Three Months Ended December 31,Twelve Months Ended December 31,
2022202120222021
GAAP Net income attributable to common stockholders$(4,219)$(1,254)$49,955 $29,114 
Less: Other Income— (4)(12)(16)
Add: Interest expense5,520 1,953 15,5146,757 
General and administrative3,815 3,239 14,65412,621 
Depreciation8,031 3,285 24,8128,025 
Impairment charge— — — 520 
Provision for taxes(155)51 821206 
Less: Gain on sale of real estate— — (6)(7,693)
          Gain on the sale of partnership interest— (388)— (2,632)
Add: Loss on extinguishment of debt— 673 563 1,575 
Equity in (earnings) loss of unconsolidated joint venture properties(580)(1,825)(1895)4,208 
Casualty loss850 — 850 — 
Less: Equity in earnings from sale of unconsolidated joint
         venture properties		— — (64,531)(34,982)
Insurance recovery of casualty loss(850)— (850)— 
Gain on insurance recovery— — (62)— 
Add: Net income attributable to non-controlling interests37 34 144 136 
Net Operating Income$12,449 $5,764 $39,957 $17,839 
Less: Non same store and non multi family
         Revenues(13,478)(1,785)(43,009)(7,125)
         Operating Expenses5,937 851 18,720 3,393 
 Non Same store and non multi NOI(7,541)(934)(24,289)(3,732)
Same Store Net Operating Income$4,908 $4,830 $15,668 $14,107 


12

Exhibit 99.2
SUPPLEMENTAL FINANCIAL
INFORMATION FOR THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2022


March 14, 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 ContentsPage Number
    

Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Financial Highlights
_________________________________________________________________________________________________________
As at December 31,
20222021
Market capitalization (thousands)$371,982 $438,321 
Shares outstanding (thousands)18,940 18,271 
Closing share price$19.64 $23.99 
Quarterly dividend declared per share$0.25 $0.23 
Quarter ended December 31,
CombinedConsolidatedUnconsolidated
202220212022202120222021
Properties owned293321108(1)23
Units8,2019,2735,4202,5762,7816,697
Quarter Average occupancy94.7 %96.4 %94.8 %97.3 %94.5 %96.1 %
Quarter Average monthly rental revenue per occupied unit $1,347$1,233$1,320$1,276$1,396$1,169
Quarter ended December 31,Twelve months ended
 December 31,
Per share data2022
(Unaudited)		2021
(Unaudited)		20222021
(Loss) earnings per share basic$(0.22)$(0.08)$2.67 $1.63 
(Loss) earnings per share diluted$(0.22)$(0.08)$2.66 $1.62 
FFO per share of common stock (diluted) (2)$0.40 $0.35 $1.24 $0.97 
AFFO per share of common stock (diluted) (2)$0.37 $0.41 $1.52 $1.33 
As at December 31,
20222021
Debt to Enterprise Value (3)62 %61 %
See definition of stabilized properties under "Non-GAAP Financial Measures and Definitions."

(1) Excludes a planned 240-unit development property.
(2) 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."
The per share data for all periods of FFO and AFFO is unaudited
(3) 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."
(4) The per share data for all periods of FFO and AFFO is unaudited.


1
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
2023 Guidance
_____________________________________________________________________________________________________________________


2023 Combined Portfolio Guidance Assumptions (1)
Low End MidpointHigh End
Property revenue growth5.2%5.7%6.2%
Controllable operating expense growth7.0%5.6%4.2%
Real estate tax and insurance expense growth (2)18.3%17.7%17.1%
Total operating expense growth10.3%9.2%8.2%
Property NOI growth1.4%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)
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. Property assumptions exclude Chatham Court, which is under contract to sell.
(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 decision to implement a master insurance program effective Q4 2022, which replaced policies at 17 properties which were scheduled to expire throughout 2023. This decision will result in the recognition of higher insurance expense at an earlier point in 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.
2
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Components of Net Asset Value
As of December 31, 2022
(dollars in thousands)
____________________________________________________________________________________________________________________
Net Operating Income (YTD 2022)
Consolidated$39,957 
Unconsolidated (Pro rata)23,771 
Total Net Operating Income$63,728 
OTHER ASSETS
Cash and Cash Equivalents $20,281 
Cash and Cash Equivalents - Unconsolidated pro rata3,608 
Restricted Cash872 
Other Assets16,786 
Other Assets - Unconsolidated pro rata10,153 
Total Cash and Other Assets$51,700 
OTHER LIABILITIES
Accounts Payable and Accrued Liabilities$22,631 
Accounts Payable and Accrued Liabilities - Unconsolidated pro rata4,229 
Total Other Liabilites$26,860 
DEBT SUMMARY
Mortgages Payable:
Consolidated (1)$403,792 
Unconsolidated (Pro rata)126,758 
Total Mortgages Payable$530,550 
Credit Facility (2)19,000 
Subordinated Notes37,123 
Total Debt Outstanding$586,673 
Common Shares Outstanding18,940 
_______________________________
(1) Excludes $21.2 million relating to a financing that occurred on 2/24/2023
(2 ) Amount outstanding of $19 million was paid off on 2/24/2023 with the proceeds from the above referenced financing



3
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Results of Operations
(dollars in thousands except per share data)

_____________________________________________________________________________________________________________________
Three Months Ended December 31,
(Unaudited)		Twelve months Ended December 31,
2022202120222021
Revenues:
Rental revenue and other revenue from other real estate properties$22,711 $10,279 $70,515 $32,041 
Other income— 4 12 16 
Total revenues22,711 10,283 70,527 32,057 
Expenses:
Real estate operating expenses 10,262 4,515 30,558 14,202 
Interest expense5,520 1,953 15,514 6,757 
General and administrative3,815 3,239 14,654 12,621 
Impairment charge— — — 520 
Depreciation and amortization8,031 3,285 24,812 8,025 
Total expenses27,628 12,992 85,538 42,125 
Total revenues less total expenses(4,917)(2,709)(15,011)(10,068)
Equity in earnings (loss) of unconsolidated joint ventures580 1,825 1,895 (4,208)
Equity in earnings from sale of unconsolidated joint venture properties— — 64,531 34,982 
Gain on sale of real estate— — 6 7,693 
Casualty loss(850)— (850)— 
Insurance recovery of casualty loss850 — 850 — 
Gain on insurance recovery— — 62 — 
Gain on sale of partnership interest— 388 — 2,632 
Loss on extinguishment of debt— (673)(563)(1,575)
(Loss) income from continuing operations(4,337)(1,169)50,920 29,456 
 Income tax (benefit) provision(155)51 821 206 
Net (loss) income from continuing operations, net of taxes(4,182)(1,220)50,099 29,250 
    Income attributable to non-controlling interests(37)(34)(144)(136)
Net (loss) income attributable to common stockholders$(4,219)$(1,254)$49,955 $29,114 
Weighted average number of shares of common stock outstanding:
Basic18,004,715 17,317,596 17,793,035 17,017,690 
Diluted18,004,715 17,317,596 17,852,951 17,084,642 
Per share amounts attributable to common stockholders:
Basic $(0.22)$(0.08)$2.67 $1.63 
Diluted$(0.22)$(0.08)$2.66 $1.62 


4
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Operating Results of Unconsolidated Properties
(dollars in thousands)

_____________________________________________________________________________________________________________________

Three Months Ended December 31,
(Unaudited)		Twelve months Ended December 31,
2022202120222021
Revenues:
Rental and other revenue$12,033 $26,411 $72,873 $121,906 
Total revenues12,033 26,411 72,873 121,906 
Expenses:
Real estate operating expenses5,563 10,994 33,086 56,507 
Interest expense2,507 6,402 16,269 30,964 
Depreciation2,841 7,172 17,798 35,636 
Total expenses10,911 24,568 67,153 123,107 
Total revenues less total expenses1,122 1,843 5,720 (1,201)
Other equity earnings32 33 121 54 
Impairment of assets(8,553)— (8,553)(2,813)
Insurance recoveries8,553 — 8,553 2,813 
Gain on insurance recoveries— 933 567 2,179 
Gain on sale of real estate properties— — 118,270 83,984 
Loss on extinguishment of debt— — (3,491)(9,401)
Net income from joint ventures$1,154 $2,809 $121,187 $75,615 
BRT equity in earnings and equity in earnings from sale of unconsolidated joint venture properties$580 $1,825 $66,426 $30,774 
5
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Funds from Operations
(dollars in thousands)
____________________________________________________________________________________________________________________



Three Months Ended December 31,Twelve months Ended December 31,
2022202120222021
GAAP Net (loss) income attributable to common stockholders$(4,219)$(1,254)$49,955 $29,114 
Add: depreciation of properties8,031 3,285 24,812 8,025 
Add: our share of depreciation in unconsolidated joint ventures1,443 4,694 10,677 23,083 
Add: impairment charge— — — 520 
Add: our share of impairment charge in unconsolidated joint venture
         properties		1,493 — 1,493 2,010 
Add: casualty loss850 —850 —
Deduct: gain on sales of real estate and partnership interests— (388)(6)(10,325)
Deduct: our share of earnings from sale of unconsolidated joint venture
              properties		— — (64,531)(34,982)
Adjust for non-controlling interests(4)(4)(16)(16)
Funds from operations$7,594 $6,333 $23,234 $17,429 
Adjustments for: straight-line rent accruals6 12 24 (18)
Add: loss on extinguishment of debt— 673 563 1,575 
Add: our share of loss on extinguishment of debt from unconsolidated
         joint ventures		— — 1,880 4,581 
Add: amortization of restricted stock and RSU expense1,304 991 4,487 2,941 
Add: amortization of deferred mortgage and debt costs240 80 628 295 
Add: our share of deferred mortgage costs from unconsolidated joint
         venture properties		28 103 227 542 
Add: amortization of fair value adjustment for mortgage debt166 — 148 — 
Less: insurance recovery of casualty loss(850)— (850)— 
Less: our share of insurance recovery from unconsolidated joint
         ventures		(1,493)— (1,493)(2,010)
Less: gain on insurance recovery— — (62)— 
Less: our share of gain on insurance proceeds from unconsolidated
          joint venture		— (648)(432)(1,528)
Adjustments for non-controlling interests(1)(2)(4)4 
Adjusted funds from operations$6,994 $7,542 $28,350 $23,811 

6

Funds from Operations
____________________________________________________________________________________________________________________



Three Months Ended December 31,Twelve months Ended December 31,
2022202120222021
GAAP Net (loss) income attributable to common stockholders$(0.22)$(0.08)$2.66 $1.62 
Add: depreciation of properties0.42 0.19 1.33 0.45 
Add: our share of depreciation in unconsolidated joint ventures0.08 0.26 0.57 1.29 
Add: Impairment charge— — — 0.03 
Add: our share of impairment charge in unconsolidated joint
          ventures		0.08 — 0.08 0.11 
Add: casualty loss0.04 — 0.05 — 
Deduct: gain on sales of real estate and partnership interest— (0.02)— (0.58)
Deduct: our share of earnings from sale of unconsolidated joint venture
              properties		— — (3.45)(1.95)
Adjustment for non-controlling interests— — — — 
Funds from operations per common share - diluted0.40 0.35 1.24 0.97 
Adjustment for: straight-line rent accruals— — — — 
Add: loss on extinguishment of debt— 0.04 0.03 0.09 
Add: our share of loss on extinguishment of debt from unconsolidated
         joint ventures		— — 0.10 0.26 
Add: amortization of restricted stock and RSU expense0.07 0.05 0.25 0.16 
Add: amortization of deferred mortgage and debt costs0.01 — 0.03 0.02 
Add: our share of amortization of deferred mortgage and debt costs from
         unconsolidated ventures		— 0.01 0.01 0.03 
Add: amortization of fair value adjustment for mortgage debt0.01 0.01 — 
Less: insurance recovery of casualty loss(0.04)(0.05)— 
Deduct: our share of insurance recovery from unconsolidated joint
             ventures		(0.08)— (0.08)(0.11)
Deduct: gain on insurance recovery— — — — 
Deduct: our share of gain on insurance proceeds from unconsolidated
              joint ventures		— (0.04)(0.02)(0.09)
Adjustment for non-controlling interests— — — — 
Adjusted funds from operations per common share - diluted$0.37 $0.41 $1.52 $1.33 
Diluted shares outstanding for FFO and AFFO18,938,807 18,240,532 18,782,695 17,936,465 
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Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Consolidated Balance Sheets
(amounts in thousands, except per share amounts)

_____________________________________________________________________________________________________________________

December 31,
20222021
ASSETS
Real estate properties, net of accumulated depreciation$651,603 $293,550 
Investment in unconsolidated joint ventures42,576 112,347 
Cash and cash equivalents20,281 32,339 
Restricted cash872 6,582 
Other assets16,786 10,341 
Real estate property held for sale— 4,379 
Total Assets $732,118 $459,538 
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs$403,792 $199,877 
Junior subordinated notes, net of deferred costs37,123 37,103 
  Credit facility, net of deferred costs18,502 — 
Accounts payable and accrued liabilities22,631 19,607 
Total Liabilities 482,048 256,587 
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;
18,006 and 17,349 shares outstanding180 173 
Additional paid-in capital273,863 258,161 
Accumulated deficit(23,955)(55,378)
Total BRT Apartments Corp. stockholders’ equity250,088 202,956 
Non-controlling interests(18)(5)
Total Equity250,070 202,951 
Total Liabilities and Equity$732,118 $459,538 

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Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Acquisitions and Dispositions
(dollars in thousands)

________________________________________________________________________________________


ACQUISITIONS
Buyouts of Joint Venture Interests
Property/LocationPurchase DateUnitsPurchase PricePre-Acquisition ownership % in the JVPost-Acquisition Ownership %
Verandas at Alamo - San Antonio, TX03/23/2022288$8,721 71.9 %100 %
Vanguard Heights - Creve Coeur, MO04/07/20221744,880 78.4 %100 %
Jackson Square - Tallahassee, FL05/11/20222427,215 80.0 %100 %
Brixworth at Bridge Street - Huntsville, AL05/24/202220810,697 80.0 %100 %
Woodland Apartments - Boerne, TX05/26/20221203,881 80.0 %100 %
Grove at River Place - Macon, GA06/30/20222407,485 80.0 %100 %
Civic Center I - Southaven, MS07/12/202239218,233 75.0 %100 %
Civic Center II - Southaven, MS07/12/202238417,942 75.0 %100 %
Abbotts Run - Wilmington, NC07/14/20222649,010 75.0 %100 %
Somerset At Trussville - Trussville, AL07/19/202232810,558 80.0 %100 %
Magnolia Pointe - Madison, AL08/03/20222047,246 80.0 %100 %
2,844 $105,868 
In March 2023, the Company entered into an agreement to acquire a 238-unit property for a purchase price of $62.5 million and the assumption of approximately $32 million of mortgage debt with an interest rate of 3.34% and maturing in 2061.
Acquisition of Joint Venture Interest in Development Project
Property/LocationPurchase DatePlanned UnitsPurchase PriceAcquisition ownership % in the JV
Stono Oaks - Johns Island, SC3/10/2022240 $3,500 17.45 %
DISPOSITIONS
Disposition of Property by Unconsolidated Joint Ventures
Property/LocationSale DateUnitsInterest OwnedSales PriceGain on SaleBRT's Share of Gain on SaleBRT's share of Loss on extinguishment of debt
Verandas at Shavano - San Antonio, TX2/8/202228865 %$53,750 $23,652 $12,961 $— 
Retreat at Cinco Ranch - Katy, TX6/14/202226875 %68,300 30,595 17,378 686 
The Vive - Kannapolis, NC6/30/202231265 %91,250 47,086 22,720 787 
Waters Edge - Columbia, SC8/31/2022204 80 %32,400 16,937 11,472 388 
1,072 $245,700 $118,270 $64,531 $1,861 


In March 2023, the unconsolidated joint venture that owns Chatham Court and Reflections, a 494 unit multi-family property located in Dallas, TX, and in which we have a 50% interest, entered into a contract to sell such property for $73.0 million.


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Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Value-Add Program and Capital Expenditures
________________________________________________________________________________________
For the Quarter ended December 31, 2022
Value-Add Program
(Includes consolidated and unconsolidated amounts)
Units Rehabilitated (1)Estimated Rehab Costs (2)Estimated Rehab Costs Per unitEstimated Average Monthly Rent Increase (3)Estimated Annualized ROI (3)Estimated units available to be renovated over next 24 months
98$692,000$7,061$27547%900
(1) Refers to rehabilitated units with respect to which a new lease or renewal lease was entered into during the period.
(2) Reflects rehab costs incurred during the current and prior periods with respect to units completed, in which a new
       lease or renewal lease was entered into during the current period.
(3) These results are not necessarily indicative of the results that would be generated if such improvements were made
       across our portfolio of properties or at any particular property. Rents at a property may increase for reasons wholly
       unrelated to property improvements, such as changes in demand for rental units in a particular market or
       sub-market. Even if units are available to be renovated, the Company may decide not to renovate such units.


For the twelve months ended December 31, 2022
Capital Expenditures (5)
(Includes consolidated and unconsolidated amounts)
Gross ExpendituresLess: JV Partner ShareBRT Share of Expenditures (4)
Estimated Recurring Capital Expenditures (1)$6,397,000 $1,117,000 $5,280,000 
Estimated Non-Recurring Capital Expenditures (2)6,031,000 711,000 5,320,000 
Total Capital Expenditures$12,428,000 $1,828,000 $10,600,000 
Replacements (operating expense) (3)$2,924,000 $470,000 $2,454,000 
Estimated Recurring Capital Expenditures and
Replacements per unit (8,201 units)		$1,137 $194 $943 
(1) Recurring capital expenditures represent our estimate of expenditures incurred at the property to maintain the property's existing operation.
(2) Non-recurring capital expenditures represent our estimate of significant improvements to the common areas, property exteriors, or interior
       units of the property, and revenue enhancing upgrades.
(3) Replacements are expensed as incurred at the property.
(4) Based on BRT's pro-rata share
(5) BRT previously classified capital expenditures on a property level basis. The Company has reclassified,herein the previously reported 2022 capital
      expenditures on a portfolio level basis and the 2022 numbers are presented in a manner in which we intend to present such information on
       a going forward basis.




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BRT Apartments Corp. (NYSE: BRT)
Debt Analysis
As of December 31, 2022
(dollars in thousands)
____________________________________________________________________________________________________________________________________
Consolidated
Year
Total Principal PaymentsScheduled AmortizationPrincipal Payments Due at Maturity Percent of Total Principal Payments Due At MaturityWeighted Average Interest Rate (1)
2023$2,712 $2,712 $— — %— %
20243,667 3,667 — — %— %
202520,188 4,813 15,375 4 %4.42 %
202674,652 5,121 69,531 19 %4.12 %
202746,220 3,425 42,795 12 %3.96 %
Thereafter (a)260,519 24,315 236,204 65 %3.96 %
Total$407,958 $44,053 $363,905 100 %
(a) Excludes a $21,173 mortgage obtained in February 2023 which is interest only, bears an interest rate of 4.45% and matures in March 2033
Unconsolidated (BRT pro rata share)
YearTotal Principal PaymentsScheduled AmortizationPrincipal Payments Due at MaturityPercent of Total Principal Payments Due At MaturityWeighted Average Interest Rate (1)
2023$1,778 $1,778 — — %— %
20242,057 2,057 $— — %— %
20252,154 2,154 — — %— %
202621,362 2,130 19,232 17 %4.17 %
202713,364 1,810 11,554 10 %4.15 %
Thereafter86,715 1,902 84,813 73 %3.84 %
Total$127,430 $11,831 $115,599 100 %
Combined (2)
YearTotal Principal PaymentsScheduled AmortizationPrincipal Payments Due at MaturityPercent of Total Principal Payments Due At MaturityWeighted Average Interest Rate (1)
2023$4,490 $4,490 $— — %— %
20245,724 5,724 — — %— %
202522,342 6,967 15,375 3 %4.42 %
202696,014 7,251 88,763 19 %4.13 %
202759,584 5,235 54,349 11 %4.00 %
Thereafter347,234 26,217 321,017 67 %3.93 %
Total$535,388 $55,884 $479,504 100 %
Weighted Average Remaining Term to Maturity (2)7.44yrs
Weighted Average Interest Rate (2)3.98 %
Debt Service Coverage Ratio for the quarter ended December 31, 2022 1.66 (3)
(1) Based on balloon payments at maturity. Includes consolidated and BRT pro rata share amounts.
(2) Includes consolidated and BRT pro rata share unconsolidated amounts.
(3) See definition under "Non-GAAP Financial Measures and Definitions." Includes consolidated and 100% of the unconsolidated amounts.
Junior Subordinated Notes
Principal Balance $37,400
Interest Rate3 month LIBOR + 2.00% (i.e., 6.42% at 12/31/2022); Rate in effect for next payment on May 1, 2023 is 6.80%
MaturityApril 30, 2036
Credit Facility (as of December 31, 2022)
Maximum Amount Available Up to $60,000
Amount Outstanding $19,000 (1)
Interest RatePrime (floor of 3.50%) (2)
MaturitySeptember 14, 2025
(1) The amount outstanding was paid in full on February 24, 2023
(2) As of March 1, 2023, the interest rate in effect is 7.75%
11
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Quarter ended December 31, 2022
(dollars in thousands, except monthly rent amounts)

_____________________________________________________________________________________________________________________
Consolidated
 Units at period endRevenues Property Operating Expenses NOI (1)% of NOI ContributionWeighted Average OccupancyWeighted Average Monthly Rent per Occ. Unit
Texas600$2,287 $1,326 $961 7.7 %91.1 %$1,227 
Georgia6882,611 1,226 1,385 11.1 %95.5 %1,170 
Florida5182,319 936 1,383 11.1 %94.8 %1,433 
Ohio264917 374 543 4.4 %97.5 %1,055 
Virginia2201,139 446 693 5.6 %95.3 %1,639 
North Carolina264990 379 611 4.9 %96.5 %1,171 
South Carolina4742,051 1,150 901 7.2 %96.0 %1,319 
Tennessee7023,530 1,645 1,885 15.1 %94.7 %1,649 
Alabama7402,682 1,148 1,534 12.3 %93.5 %1,005 
Missouri174899 368 531 4.3 %91.4 %1,678 
Mississippi7762,906 1,156 1,750 14.1 %96.7 %1,210 
Sold properties and legacy assets—380 108 272 2.2 %N/AN/A
Totals5,420$22,711 $10,262 $12,449 100 %94.8 %$1,320 
Unconsolidated (Pro-Rata Share) (1)
Units at period endRevenuesProperty Operating ExpensesNOI (1)% of NOI ContributionWeighted Average OccupancyWeighted Average Rent per Occ. Unit
Texas1,597$3,532 $1,698 $1,834 56.1 %94.2 %$1,403 
South Carolina7131,234 404 830 25.4 %93.7 %1,463 
Georgia271926 480 446 13.6 %95.2 %1,468 
Alabama200541 236 305 9.3 %98.3 %1,020 
Sold properties—(61)83 (144)(4.4)%N/AN/A
2,781$6,172 $2,901 $3,271 100.0 %94.5 %$1,396 
_________________________________________________________________________________
(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."












12
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BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Twelve months ended December 31, 2022
(dollars in thousands, except monthly rent amounts)

____________________________________________________________________________________________________________________
Consolidated
 Units at period endRevenues Property Operating Expenses NOI (1)% of NOI ContributionWeighted Average Occupancy Weighted Average Rent per Occ. Unit
Texas600$7,579 $3,852 $3,727 9.3 %94.0 %$1,194 
Georgia6888,786 3,995 4,791 12.0 %96.8 %1,167 
Florida5187,605 3,134 4,471 11.2 %95.6 %1,385 
Ohio2643,564 1,443 2,121 5.3 %97.3 %1,031 
Virginia2204,556 1,670 2,886 7.2 %97.4 %1,593 
North Carolina2641,825 708 1,117 2.8 %96.3 %1,157 
South Carolina4748,110 4,053 4,057 10.2 %97.1 %1,292 
Tennessee70213,812 5,925 7,887 19.7 %96.6 %1,569 
Alabama7405,098 2,133 2,965 7.4 %93.9 %1,109 
Missouri1742,630 1,081 1,549 3.9 %94.3 %1,621 
Mississippi7765,438 2,118 3,320 8.3 %97.2 %1,186 
Sold properties and legacy assets—1,512 446 1,066 2.7 %N/AN/A
Totals5,420$70,515 $30,558 $39,957 100 %96.1 %$1,300 
Unconsolidated (Pro-Rata Share)(1)
Units at period endRevenuesProperty Operating ExpensesNOI (1)% of NOI ContributionAverage Occupancy Average Rent per Occ. Unit
Texas1,597$13,618 $6,585 $7,033 29.6 %95.4%$1,299 
South Carolina7134,855 1,749 3,106 13.1 %96.0%1,337 
Georgia2713,526 1,661 1,865 7.8 %94.4%1,234 
Alabama2002,064 983 1,081 4.5 %96.3%1,043 
Other (2)—19,709 9,023 10,686 45.0 %N/AN/A
Totals2,781$43,772 $20,001 $23,771 100 %95.7 %$1,247 
_________________________________________________________________________________
(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 properties that were sold or which BRT bought out the partner's interest.
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BRT Apartments Corp. (NYSE: BRT)
Combined Portfolio Metrics (1)
Quarter ended December 31, 2022 and 2021
(dollars in thousands)
____________________________________________________________________________________________________________________


Three Months Ended December 31,
20222021% Change
Combined Revenues (2)$28,563 $26,315 8.5 %
Combined Operating Expenses (2)
Payroll $2,519 $2,298 9.6 %
Real Estate taxes3,198 2,369 35.0 %
Management Fees883 902 (2.1)%
Insurance821 729 12.6 %
Utilities1,742 1,532 13.7 %
Repairs and Maintenance2,307 1,535 50.3 %
Replacements650 542 19.9 %
Advertising, Leasing and Other898 968 (7.2)%
Total Combined Operating Expenses$13,018 $10,875 19.7 %
Total Combined Operating Income$15,545 $15,440 0.7 %

_______________________________

(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 number of 8,201 units.
(2)    For 2022, includes $948, $450, and $498 of revenues, expenses, and NOI respectively relating to Chatham Court, the property that is under contract to sell.
For 2021, includes $829, $443, and $387 of revenues, expenses, and NOI respectively relating to Chatham Court, the property that is under contract to sell.




14
Table of Contents
BRT Apartments Corp. (NYSE: BRT)

Combined Portfolio Metrics (1)
Year ended December 31, 2022 and 2021
(dollars in thousands)
____________________________________________________________________________________________________________________


Twelve months Ended December 31,
20222021% Change
Combined Revenues (2)$102,629 $93,317 10.0 %
Combined Operating Expenses (2)
Payroll $8,875 $8,231 7.8 %
Real Estate taxes11,958 11,221 6.6 %
Management Fees3,297 3,222 2.3 %
Insurance2,929 2,691 8.8 %
Utilities6,063 5,509 10.1 %
Repairs and Maintenance6,261 5,319 17.7 %
Replacements2,265 1,983 14.2 %
Advertising, Leasing and Other3,178 3,208 (0.9)%
Total Combined Operating Expenses$44,826 $41,384 8.3 %
Total Combined Operating Income$57,803 $51,933 11.3 %
_______________________________
(1)Please refer to Non-GAAP Financial Measures, Definitions and Reconciliations for definition of Combined Portfolio and reconciliation of Net Operating Income. Combined portfolio refers to the consolidated same store properties, the unconsolidated same store properties presented on a pro rata share basis, and the other multifamily properties that BRT currently owns presented at 100% ownership for all periods presented with a total number of 7,799 units.. Excludes Bells Bluff as it was not stabilized in both periods.
(2)For 2022, includes $3,613, $1,802 and $1,812 of revenues, expenses, and NOI, respectively, relating to Chatham Courtt.
For 2021, includes $3,010, $1,781 and $1,230 of revenues, expenses, and NOI, respectively relating to Chatham Court.

15
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Portfolio Table
As of 3/01/2023
___________________________________________________________________________________________
PropertyCityStateYear BuiltYear AcquiredProperty AgeUnitsQ4 2022 Avg. OccupancyQ4 2022 Avg. Rent per Occ. Unit
Consolidated Properties - All 100% owned
Silvana OaksNorth CharlestonSC201020121220893.9%$1,364
Avondale StationDecaturGA195420126821295.8%1,373
Newbridge CommonsColumbusOH199920132326497.5%1,055
AvalonPensacolaFL200820141427695.5%1,526
Parkway GrandeSan MarcosTX20142015819292.7%1,297
Woodland TrailsLaGrangeGA201020151223694.4%1,265
Kilburn CrossingFredericksburgVA200520161722095.3%1,639
Bell's BluffNashvilleTN20192018340294.2%1,816
Crossings of BellevueNashvilleTN198520143730095.8%1,427
Crestmont at ThornbladeGreenvilleSC199820182426697.6%1,286
Verandas at Alamo RanchSan AntonioTX20152016728887.7%1,190
Vanguard HeightsCreve CoeurMO20162017617491.4%1,678
Jackson SquareTallahasseeFL199620172624294.1%1,325
Brixworth at BridgestreetHuntsvilleAL198520133720892.6%1,005
Woodland ApartmentsBoerneTX200720171512096.4%1,201
Grove at River PlaceMaconGA198820163424096.3%901
Civic Center 1SouthavenMS200220162039296.7%1,176
Civic Center 2SouthavenMS200520161738496.6%1,244
Abbotts RunWilmingtonNC200120202126496.5%1,171
Somerset at TrussvilleTrussvilleAL200720191532895.0%1,168
Magnolia PointeMadisonAL199120173120491.9%1,180
Weighted Avg./Total Consolidated215,420
Properties owned by Unconsolidated Joint Ventures (1)
% Ownership
Chatham Court and Reflections (1)
DallasTX198620163649494.8%$1,21050.0 %
Pointe at Lenox ParkAtlantaGA198920163327195.2%1,46874.0 %
Gateway OaksForneyTX20162016631396.5%1,35350.0 %
Mercer CrossingDallasTX20152017750993.0%1,65850.0 %
Canalside LoftsColumbiaSC200820171437491.4%1,38432.0 %
Landings of Carrier ParkwayGrand Prairie TX200120182228192.7%1,34850.0 %
Canalside Sola ColumbiaSC20152018733996.3%1,54746.2 %
The Village at LakesideAuburnAL198820193420098.3%1,02080.0 %
Weighted Avg./Total Unconsolidated192,781
Development
Stono Oaks (2)Johns IslandSC
Weighted Avg./Total Portfolio208,201
____________________________________
(1) In March 2023, the Company entered into a contract to sell Chatham Court and Reflections.
(2) Purchased a 17.45% interest in a planned 240-unit development property.
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BRT Apartments Corp. (NYSE: BRT)




















APPENDIX
17
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES AND DEFINITIONS
(dollars in thousands)
________________________________________________________________________________________

Adjusted Funds from Operations (AFFO)

BRT computes AFFO by adjusting FFO for loss on extinguishment of debt, our straight-line rent accruals, restricted stock and RSU compensation expense, fair value adjustment of mortgage debt, gain on insurance recovery, insurance recovery from casualty loss and deferred mortgage and debt costs (including, in each case as applicable, from 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.

Net Operating Income (NOI)
BRT computes NOI by adjusting net income (loss) to (a) add back (1) interest expense, (2) general and administrative expenses, (3) depreciation expense, (4) impairment charges, (5) provision for taxes, (6) loss on extinguishment of debt, (7) equity in loss of unconsolidated joint ventures, (8) casualty loss and (9) the impact of non-controlling interests, and (b) deduct (1) other income, (2) gain on sale of real estate (3) gain on sale of partnership interest, (4) equity in earnings from sale of consolidated joint venture properties, (5) insurance recovery of casualty loss and (6) gain on insurance recoveries.

Pro-Rata Share
BRT's pro-rata share gives effect to its percentage equity interest in the unconsolidated joint ventures that own properties. Due to the operation of allocation/distribution provision of the joint venture agreements pursuant to which BRT participates in the ownership of these properties, BRT's share of the gain and loss on the sale of a property may be less than implied by BRT's percentage equity interest. Notwithstanding the foregoing, when referring to the number of units, average occupancy, and average rent per unit, the amount shown reflects 100% of the amount.

Same Store
Same store properties refer to stabilized properties (as described below) that we owned and operated for the entirety of periods being compared, except for properties that are under construction, in lease-up, or are undergoing development or redevelopment. We move properties previously excluded from our same store portfolio (because they were under construction, in lease up or are in development or redevelopment) into the same store designation once they have stabilized and such status has been reflected fully in all applicable periods of comparison.

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.
18
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Consolidated Same Store Comparisons (1)
Quarters ended December 31, 2022 and 2021
(dollars in thousands, except monthly rent amounts)
_____________________________________________________________________________________________________________________
RevenuesProperty Operating ExpensesNOI (2)
Units20222021% Change20222021% Change20222021% Change
Georgia 448$1,906$1,72310.6 %$852 $731 16.6 %$1,054 $992 6.3 %
Florida2761,3311,2139.7 %480 511 (6.1)%851 702 21.2 %
Texas 19277870410.5 %446 282 58.2 %332 422 (21.3)%
Ohio2649178389.4 %374 362 3.3 %543 476 14.1 %
Virginia2201,1391,0963.9 %446 369 20.9 %693 727 (4.7)%
South Carolina2089338648.0 %551 461 19.5 %382 403 (5.2)%
Tennessee4022,2292,0568.4 %1,176 948 24.1 %1,053 1,108 (5.0)%
Totals2,010$9,233$8,4948.7 %$4,325 $3,664 18.0 %$4,908 $4,830 1.6 %
Weighted Average OccupancyWeighted Average Monthly Rent per Occupied Unit
20222021% Change20222021% Change
Georgia95.0 %98.5 %(3.6)%$1,317 $1,152 14.3 %
Florida95.5 %97.8 %(2.4)%1,526 1,326 15.1 %
Texas92.7 %97.7 %(5.1)%1,297 1,088 19.2 %
Ohio97.5 %97.2 %0.3 %1,055 972 8.5 %
Virginia95.3 %97.3 %(2.1)%1,639 1,516 8.1 %
South Carolina93.9 %94.1 %(0.2)%1,364 1,277 6.8 %
Tennessee94.2 %96.8 %(2.7)%1,816 1,626 11.7 %
Weighted Average94.9 %97.2 %(2.4)%$1,448 $1,293 12.0 %
_________________________________________
(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 under "Non-GAAP Financial Measures and
Definitions."


19
Table of Contents
BRT Apartments Corp. (NYSE: BRT)

Consolidated Same Store Comparisons (1)
Twelve months ended December 31, 2022 and 2021
(dollars in thousands, except monthly rent amounts)
____________________________________________________________________________________________________________________
RevenuesProperty Operating ExpensesNOI (2)
Units20222021% Change20222021% Change20222021% Change
Georgia 448$7,388$6,7239.9 %$3,253 $3,002 8.4 %$4,135 $3,721 11.1 %
Florida2765,1044,59411.1 %1,980 1,860 6.5 %3,124 2,734 14.3 %
Texas 1923,0702,71013.3 %1,542 1,355 13.8 %1,528 1,355 12.8 %
Ohio2643,5643,23210.3 %1,443 1,394 3.5 %2,121 1,838 15.4 %
Virginia2204,5564,2736.6 %1,670 1,491 12.0 %2,886 2,782 3.7 %
South Carolina2083,8243,38413.0 %1,950 1,707 14.2 %1,874 1,677 11.7 %
Totals1,608$27,506$24,91610.4 %$11,838 $10,809 9.5 %$15,668 $14,107 11.1 %
Weighted Average OccupancyWeighted Average Monthly Rent per Occupied Unit
20222021% Change20222021% Change
Georgia96.9 %98.1 %(1.2)%$1,254 $1,124 11.6 %
Florida96.3 %98.1 %(1.8)%1,438 1,250 15.0 %
Texas95.9 %97.1 %(1.2)%1,209 1,042 16.0 %
Ohio97.3 %97.5 %(0.2)%1,031 947 8.9 %
Virginia97.4 %97.9 %(0.5)%1,593 1,465 8.7 %
South Carolina96.0 %95.1 %0.9 %1,370 1,231 11.3 %
Weighted Average96.7 %97.5 %(0.8)%$1,305 $1,167 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."

20
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons (1)
Quarters ended December 31, 2022 and 2021
BRT Pro-rata Share
(dollars in thousands, except monthly rent amounts)
________________________________________________________________________________________
RevenuesProperty Operating ExpensesNOI (2)
Units20222021% Change20222021% Change20222021% Change
Texas1,597$3,532$3,16911.5 %$1,733 $1,454 19.2 %$1,799 $1,715 4.9 %
Georgia2719268479.3 %491 363 35.3 %434 483 (10.1)%
South Carolina 7131,2341,1864.0 %404 385 4.9 %830 801 3.6 %
Alabama 20054148212.2 %236 226 4.4 %305 256 19.1 %
Totals2,781$6,233$5,6849.7 %$2,864$2,42818.0 %$3,368$3,2553.5 %
Weighted Average OccupancyWeighted Average Monthly Rent per Occupied Unit
20222021% Change20222021% Change
Texas94.2 %96.4 %(2.3)%$1,404 $1,216 15.5 %
Georgia95.2 %95.9 %(0.7)%1,468 1,328 10.5 %
South Carolina 93.7 %96.4 %(2.8)%1,463 1,343 8.9 %
Alabama 98.3 %97.2 %1.1 %1,020 932 9.4 %
Weighted Average94.5 %96.4 %(2.0)%$1,397 $1,239 12.8 %
________________________________
(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 and pro-rata share under "Non-GAAP Financial
Measures and Definitions."





21
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons (1)
Twelve months ended December 31, 2022 and 2021
BRT Pro-rata Share
(dollars in thousands, except monthly rent amounts)
_______________________________________________________________________________________
RevenuesProperty Operating ExpensesNOI (2)
Units20222021% Change20222021% Change20222021% Change
Texas1,597$13,618$12,06012.9 %$6,586 $6,107 7.8 %$7,032 $5,953 18.1 %
Georgia2713,5263,2697.9 %1,660 1,374 20.8 %1,866 1,895 (1.5)%
South Carolina 7134,8554,37910.9 %1,749 1,686 3.7 %3,106 2,693 15.3 %
Alabama 2002,0641,8909.2 %983 917 7.2 %1,081 973 11.1 %
Totals2,781$24,063$21,59811.4 %$10,978 $10,084 8.9 %$13,085 $11,514 13.6 %
Weighted Average OccupancyWeighted Average Monthly Rent per Occupied Unit
20222021% Change20222021% Change
Texas95.4 %94.9 %0.5 %$1,327 $1,167 13.7 %
Georgia94.1 %96.0 %(2.0)%1,405 1,275 10.2 %
South Carolina96.1 %92.9 %3.4 %1,391 1,289 7.9 %
Alabama97.7 %97.1 %0.6 %983 907 8.4 %
Weighted Average95.6 %94.7 %1.0 %$1,326 $1,189 11.5 %
___________________________________
(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."



22
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Buyout NOI by State
Three and Twelve Months Ended December 31, 2022 and 2021
Assuming 100% Ownership
(dollars in thousands)
________________________________________________________________________________________


Three Months Ended December 31,
20222021
ConsolidatedRevenuesExpensesNOIRevenuesExpensesNOI
Alabama$2,682$1,148$1,534$2,522$1,014$1,508
Florida988456532867326541
Georgia705374331628313315
Mississippi2,9061,1561,7502,6777891,888
Missouri899368531855397458
North Carolina990379611896335561
South Carolina1,1185995191,018548470
Tennessee1,3014698321,166363803
Texas1,5098806291,509698811
Totals$13,098$5,829$7,269$12,138$4,783$7,355
Twelve Months Ended December 31,
20222021
RevenuesExpensesNOIRevenuesExpensesNOI
Alabama$10,487$4,456$6,031$9,962$4,228$5,734
Florida3,8181,8531,9653,3571,6041,753
Georgia2,6991,4291,2702,4761,2621,214
Mississippi11,2244,1437,08110,3673,7116,656
Missouri3,5451,4792,0663,4641,5061,958
North Carolina3,8071,4962,3113,3621,4781,884
South Carolina4,2862,1032,1833,8282,0091,819
Tennessee4,9441,8933,0514,5031,8732,630
Texas6,2503,1583,0925,4842,8202,664
Totals$51,060$22,010$29,050$46,803$20,491$26,312






23
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Buyout NOI Reconciliation
Three and Twelve Months Ended December 31, 2022 and 2021
Assuming 100% Ownership
(dollars in thousands)
________________________________________________________________________________________


Three Months Ended December 31,Twelve Months Ended December 31,
2022202120222021
Net (Loss) income$(4,219)$(1,254)$49,955 $29,114 
Less: Equity in earnings from JV(580)(1,825)(66,426)(30,774)
Add: Net income from unconsolidated JV1,154 2,809 121,187 75,615 
Less: Other income— (4)(12)(16)
Add: Interest Expense5,520 1,953 15,514 6,757 
General and administrative3,815 3,239 14,654 12,621 
Impairment Charge— — — 520 
Depreciation and amortization8,031 3,285 24,812 8,025 
Provision for taxes(155)51 821 206 
Loss on Extinguishment of debt— 673 563 1,575 
Unconsolidated Interest Expense2,507 6,402 16,269 30,964 
Unconsolidated Depreciation2,841 7,172 17,798 35,636 
Unconsolidated Loss on Extinguishment of debt— — 3,491 9,401 
Less: Gain on sale of real estate— — (6)(7,693)
Gain on sale of partnership interest— (388)— (2,632)
Insurance Recovery— — — — 
Gain on Insurance Recoveries— — (62)— 
 Casualty loss850 — — — 
Insurance recovery of casualty los(850)— — — 
Unconsolidated Impairment8,553 — 8,553 2,813 
Unconsolidated Insurance Recovery(8,553)— (8,553)(2,813)
Unconsolidated Gain on Insurance Recoveries— (933)(567)(2,179)
Unconsolidated Gain on Sale— — (118,270)(83,984)
Unconsolidated Other equity earnings(32)(33)(121)(54)
Add: Net loss attributable to non-controlling interests 37 34 144 136 
Net Operating Income18,919 21,181 79,744 83,238 
Less: Non-buyout net operating income11,650 13,826 50,694 56,926 
Buyout Net Operating Income$7,269 $7,355 $29,050 $26,312 
24
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
RECONCILIATIONS
(dollars in thousands)
________________________________________________________________________________________

The following tables provides a reconciliation of NOI to net income attributable to common stockholders as computed in accordance with GAAP for the periods presented for the consolidated properties:


ConsolidatedThree Months Ended December 31,Twelve Months Ended December 31,
2022202120222021
GAAP Net (loss) income attributable to common stockholders$(4,219)$(1,254)$49,955 $29,114 
Less: Other Income— (4)(12)(16)
Add: Interest expense5,520 1,953 15,514 6,757 
         General and administrative3,815 3,239 14,654 12,621 
         Depreciation and amortization8,031 3,285 24,812 8,025 
         Impairment charge— — — 520 
         Provision for taxes(155)51 821 206 
Less: Gain on sale of real estate— — (6)(7,693)
          Gain on the sale of partnership interest
— (388)— (2,632)
Add: Loss on extinguishment of debt— 673 563 1,575 
           Equity in (earnings) loss of unconsolidated joint venture
           properties		(580)(1,825)(1,895)4,208 
          Casualty loss850 — 850 — 
Less: Equity in earnings from sale of unconsolidated joint venture
          properties		— — (64,531)(34,982)
Insurance recovery of casualty loss(850)— (850)— 
Gain on insurance recovery— — (62)— 
Add: Net loss attributable to non-controlling interests37 34 144 136 
Net Operating Income$12,449 $5,764 $39,957 $17,839 
Less: Non-same store and non- multi -family Net Operating Income(7,541)(934)(24,289)(3,732)
Same store Net Operating Income$4,908 $4,830 $15,668 $14,107 


25
BRT Apartments Corp. (NYSE: BRT)
RECONCILIATIONS
(dollars in thousands)
________________________________________________________________________________________


The following tables provides a reconciliation of BRT's Equity in earnings from NOI to net income attributable to common stockholders as computed in accordance with GAAP for the periods presented for BRT's pro rata share of the unconsolidated properties:

Unconsolidated Three Months Ended December 31,Twelve Months Ended December 31,
2022202120222021
BRT equity in earnings from joint ventures$580 $1,825 $66,426 $30,774 
Add: Interest expense1,280 4,229 9,872 20,196 
         Depreciation1,443 4,694 10,677 23,083 
         Loss on extinguishment of debt— — 1,876 4,581 
        Impairment of assets1,493 — 1,493 2,010 
Less: Gain on sale of real estate— — (64,531)(34,982)
          Other equity earnings (32)(32)(121)(53)
          Insurance recoveries(1,493)— (1,493)(2,010)
         Gain on sale of insurance recoveries— (648)(428)(1,528)
Net Operating Income$3,271 $10,068 $23,771 $42,071 
Less: Non-same store Net Operating Income(97)(6,813)(10,686)(30,557)
Same store Net Operating Income$3,368 $3,255 $13,085 $11,514 
Consolidated same store Net Operating Income$4,908 $4,830 $15,668 $14,107 
Unconsolidated same store Net Operating Income3,368 3,255 13,085 11,514 
Buyout Net Operating Income7,269 7,355 29,050 26,312 
Combined Portfolio Net Operating Income$15,545 $15,440 $57,803 $51,933 
26
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
2023 Guidance Reconciliation
_____________________________________________________________________________________________________________________


Guidance Reconciliation:Low EndMid PointHigh End
 Net income per share attributable to common stockholders$0.09$0.15$0.20
Add: depreciation of properties1.441.441.44
Add: our share of depreciation in unconsolidated joint ventures0.290.290.29
   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 expense0.310.320.32
Add: amortization of deferred mortgage and debt costs0.060.060.05
Add: our share of amortization of deferred mortgage and debt costs from
         unconsolidated ventures		0.010.010.01
 Add: loss on extinguishment of debt0.010.010.01
Add: amortization of fair value adjustment for mortgage debt 0.030.030.03
Adjustments for non- controlling interests ———
AFFO per common share (diluted)$1.50$1.57$1.61

27
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
RECONCILIATIONS
(dollars in thousands)

_____________________________________________________________________________________________________________________

The condensed income statements for the unconsolidated properties below, for the three months ended December 31, 2022, presents BRT's pro-rata information.
Three Months Ended December 31, 2022
TotalPartner ShareBRT Share
Revenues:
Rental and other revenue$12,033 $5,861 $6,172 
Total revenues12,033 5,861 6,172 
Expenses:
Real estate operating expenses5,563 2,616 2,947 
Interest expense2,507 1,227 1,280 
Depreciation2,841 1,398 1,443 
Total expenses10,911 5,241 5,670 
Total revenues less total expenses1,122 620 502 
Equity in earnings of joint ventures32 (46)78 
Impairment of assets(8,553)(7,060)(1,493)
Insurance recoveries8,553 7,060 1,493 
Gain on insurance recoveries— — — 
Gain on sale of real estate properties— — — 
Loss on extinguishment of debt— — — 
Net income$1,154 $574 $580 (1)

Three Months Ended December 31, 2021
TotalPartner ShareBRT Share
Revenues:
Rental and other revenue$26,411 $9,171 $17,240 
Total revenues26,411 9,171 17,240 
Expenses:
Real estate operating expenses10,994 3,822 7,172 
Interest expense6,402 2,173 4,229 
Depreciation7,172 2,478 4,694 
Total expenses24,568 8,473 16,095 
Total revenues less total expenses1,843 698 1,145 
Equity in earnings of joint ventures33 1 32 
Impairment of assets— — — 
Insurance recoveries933 933 — 
Gain on insurance recoveries— (648)648 
Gain on sale of real estate properties— — — 
Loss on extinguishment of debt— — — 
Net loss$2,809 $984 $1,825 (1)
_______________________
(1) Reflects BRT's share as determined in accordance with GAAP - not its pro-rata share
28
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
RECONCILIATIONS
(dollars in thousands)

_____________________________________________________________________________________________________________________

The condensed income statements below present for the periods indicated a reconciliation of the information that appears in note 6 of BRT's Annual Report on Form 10-K to the BRT pro rata information presented here in this supplemental.

Twelve Months Ended December 31, 2022
TotalPartner ShareBRT Share
Revenues:
Rental and other revenue$72,873 $29,101 $43,772 
Total revenues72,873 29,101 43,772 
Expenses:
Real estate operating expenses33,086 13,039 20,047 
Interest expense16,269 6,397 9,872 
Depreciation17,798 7,121 10,677 
Total expenses67,153 26,557 40,596 
Total revenues less total expenses5,720 2,544 3,176 
Equity in earnings of joint ventures121 (46)167 
Impairment of assets(8,553)(7,060)(1,493)
Insurance recoveries8,553 7,060 1,493 
Gain on insurance recoveries567 139 428 
Gain on sale of real estate properties118,270 53,739 64,531 
Loss on extinguishment of debt(3,491)(1,615)(1,876)
Net income$121,187 $54,761 $66,426 


Twelve Months Ended December 31, 2021
TotalPartner ShareBRT Share
Revenues:
Rental and other revenue$121,906 $43,384 $78,522 
Total revenues121,906 43,384 78,522 
Expenses:
Real estate operating expenses56,507 20,056 36,451 
Interest expense30,964 10,768 20,196 
Depreciation35,636 12,553 23,083 
Total expenses123,107 43,377 79,730 
Total revenues less total expenses(1,201)7 (1,208)
Equity in earnings of joint ventures54 1 53 
Impairment of assets(2,813)(803)(2,010)
Insurance recoveries2,813 803 2,010 
Gain on insurance recoveries2,179 651 1,528 
Gain on sale of real estate properties83,984 49,002 34,982 
Loss on extinguishment of debt(9,401)(4,820)(4,581)
Net loss$75,615 $44,841 $30,774 

29
Table of Contents
BRT Apartments Corp. (NYSE: BRT)
Balance Sheet of Unconsolidated Joint Ventures
(dollars in thousands)

_____________________________________________________________________________________________________________________

The condensed balance sheet below at December 31, 2022, represent a reconciliation of the information that appears in note 6 of BRT's Annual Report on Form 10-K to the BRT pro rata information presented here in the supplemental. The Company held interests in unconsolidated joint ventures that own eight multi-family properties and a planned 240-unit development property (the "Unconsolidated Properties"). The condensed balance sheet below presents information regarding such properties (dollars in thousands):

December 31, 2022
TOTALBRT SharePartner Share
ASSETS
Real estate properties, net of accumulated depreciation$318,304 $160,040 $158,264 
Cash and cash equivalents6,591 3,608 2,983 
Other assets35,372 10,153 25,219 
Total Assets$360,267 $173,801 $186,466 
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs255,261 126,758 128,503 
Accounts payable and accrued liabilities8,222 4,467 3,755 
Total Liabilities263,483 131,225 132,258 
Commitments and contingencies
Equity:
Total unconsolidated joint venture equity96,784 42,576 54,208 
Total Liabilities and Equity$360,267 $173,801 $186,466 


30