BRT Apartments Corp 8-K/A, filed Nov 9, 2022
BRT Apartments Corp. (BRT)
8-K/A
2022-11-09
For: 2022-11-07
View Original
Added on
April 11, 2026
About this 8-K/A
BRT Apartments Corp filed this 8-K/A on November 9, 2022, reporting on events of November 7, 2022.
Items reported
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 7, 2022
(Exact name of Registrant as specified in charter)
| (State or other jurisdiction of incorporation) | (Commission file No.) | (IRS Employer I.D. No.) | ||||||||||||
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: 516 -466-3100
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
240.14d-2(b))
240.13e-4(c)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Explanatory Note
On November 7, 2022, we furnished, as exhibit 99.2 to a Current Report on Form 8-K(the “Original Filing”), supplemental financial information(the “Supplemental”) for the three and nine months ended September 30, 2022. We are furnishing this amendment (the “Amendment”) to the Original Filing to correct the information under the columns entitled “Q3 2022 Avg. Occupancy” and “Q3 2022 Avg. Rent per Occ. Unit” that appear on page 23 entitled “Portfolio Table” of the Supplemental furnished with the Original Filing. Except as expressly set forth in this Amendment, no other changes have been made to the Original Filing, and this Amendment does not modify, amend or update in any way any of the other information contained in the Original Filing. This Amendment does not reflect events that may have occurred subsequent to the filing date of the Original Filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibit relating to this Current Report on Form 8-K/A are intended to be furnished to, not filed with, the SEC.
| Exhibit No. | Description | |||||||
| Supplemental Financial Information dated November 7, 2022 | ||||||||
| 101 | Cover Page Interactive Data File - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BRT APARTMENTS CORP. | ||||||||
| November 9, 2022 | /s/ George Zweier | |||||||
| George Zweier, Vice President | ||||||||
| and Chief Financial Officer | ||||||||
Exhibit 99.2
| SUPPLEMENTAL FINANCIAL INFORMATION FOR THREE & NINE MONTHS ENDED SEPTEMBER 30, 2022 | ||
November 7, 2022
60 Cutter Mill Rd., Great Neck, NY 11021
CAUTIONARY STATEMENT REGARDING THE USE OF FORWARD LOOKING STATEMENTS AND NON-GAAP FINANCIAL INFORMATIONA
The information set forth herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provision for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words "may", "will", "believe", "expect", "intend", "anticipate”, “estimate", "project", or similar expressions or variations thereof. Forward-looking statements involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could materially affect actual results, performance or achievements. Investors are cautioned not to place undue reliance on any forward-looking statements and are urged to read the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2021 (the "Annual Report") and the other documents we file with the SEC thereafter.
This document also includes information regarding funds from operations, or FFO, adjusted funds from operations, or AFFO, net operating income, or NOI, and information regarding our pro rata share of revenues, expenses, NOI, assets and liabilities of BRT's unconsolidated subsidiaries, all of which are non-GAAP financial measures of performance. These non-GAAP measures have certain limitations and are not representative of our operations and accounts, as presented in accordance with GAAP. Accordingly, such information should be used with caution and in conjunction with the GAAP data presented herein and in our reports filed with the SEC. See “Non-GAAP Financial Measures and Definitions” herein for further information.
We undertake no obligation to update or revise the information herein, whether as a result of new information, future events or circumstances, or otherwise.
| Table of Contents | Page Number | ||||
| Financial Highlights | 1 | ||||
| Operating Results | 2 | ||||
| Operating Results of Unconsolidated Properties | 3 | ||||
| Funds From Operations | 4-5 | ||||
| Consolidated Balance Sheets | 6 | ||||
| Balance Sheets of Unconsolidated Joint Venture Entities | 7 | ||||
| Portfolio Data by State | 8-9 | ||||
| Same Store Comparison - Consolidated | 10-11 | ||||
| Same Store Comparison - Unconsolidated | 12-13 | ||||
| Portfolio Data Combined | 14 | ||||
Multi-Family Acquisitions and Dispositions | 15 | ||||
| Value-Add Information and Capital Expenditures | 16 | ||||
| Debt Analysis | 17 | ||||
| Non-GAAP Financial Measures, Definitions, and Reconciliations | 18-22 | ||||
| Portfolio Table | 23 | ||||
BRT Apartments Corp. (NYSE: BRT)
Financial Highlights
_________________________________________________________________________________________________________
| As at September 30, | |||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
| Market capitalization (thousands) | $ | 384,001 | $ | 351,127 | |||||||||||||||||||||||||||||||||||||
| Shares outstanding (thousands) | 18,907 | 18,212 | |||||||||||||||||||||||||||||||||||||||
| Closing share price | $ | 20.31 | $ | 19.28 | |||||||||||||||||||||||||||||||||||||
| Quarterly dividend declared per share | $ | 0.25 | $ | 0.23 | |||||||||||||||||||||||||||||||||||||
| Quarter ended September 30, | |||||||||||||||||||||||||||||||||||||||||
| Combined | Consolidated | Unconsolidated | |||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||
| Properties owned (a) | 29 | 35 | 21 | 8 | 8 | 27 | |||||||||||||||||||||||||||||||||||
| Units (a) | 8,201 | 9,454 | 5,420 | 2,010 | 2,781 | 7,444 | |||||||||||||||||||||||||||||||||||
| Average occupancy (a) | 96.2 | % | 96.2 | % | 96.2 | % | 97.4 | % | 96.0 | % | 95.9 | % | |||||||||||||||||||||||||||||
| Average monthly rental revenue per occupied unit | $ | 1,301 | $ | 1,152 | $ | 1,291 | $ | 1,217 | $ | 1,316 | $ | 1,136 | |||||||||||||||||||||||||||||
| ____________________________ | |||||||||||||||||||||||||||||||||||||||||
| (a) Excludes a planned 240-unit development project | |||||||||||||||||||||||||||||||||||||||||
| Quarter ended September 30, | |||||||||||||||||||||||||||||||||||||||||
| Per share data | 2022 (Unaudited) | 2021 (Unaudited) | |||||||||||||||||||||||||||||||||||||||
| Earnings per share, basic | $ | 0.37 | $ | 1.55 | |||||||||||||||||||||||||||||||||||||
| Earnings per share, diluted | $ | 0.37 | $ | 1.54 | |||||||||||||||||||||||||||||||||||||
| FFO per share of common stock (diluted) (1) | $ | 0.29 | $ | — | |||||||||||||||||||||||||||||||||||||
| AFFO per share of common stock (diluted) (1) | $ | 0.38 | $ | 0.31 | |||||||||||||||||||||||||||||||||||||
| As at September 30, | |||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
| Debt to Enterprise Value (2) | 62 | % | 66 | % | |||||||||||||||||||||||||||||||||||||
(1) See the reconciliation of Funds From Operations, or FFO, and Adjusted Funds From Operations, or AFFO, to net income, as calculated in accordance with
GAAP, and the definitions of such terms under "Non-GAAP Financial Measures and Definitions."
(2) Enterprise Value is equal to debt plus market capitalization less cash and cash equivalents, including BRT's pro-rata share of cash and cash equivalents at the
unconsolidated Joint Ventures. Cash and cash equivalents excludes restricted cash. Debt is equal to 100% of the debt at the consolidated properties and BRT's
pro-rata share of debt at the unconsolidated joint ventures. See "Non-GAAP Financial Measures and Definitions" for an explanation of "pro-rata share."
1
BRT Apartments Corp. (NYSE: BRT)
Operating Results
(dollars in thousands except per share data)
_____________________________________________________________________________________________________________________
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Rental and other revenue from real estate properties | $ | 21,691 | $ | 7,709 | $ | 47,804 | $ | 21,762 | |||||||||||||||
| Other income | 6 | 5 | 12 | 12 | |||||||||||||||||||
| Total revenues | 21,697 | 7,714 | 47,816 | 21,774 | |||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Real estate operating expenses | 9,195 | 3,404 | 20,296 | 9,687 | |||||||||||||||||||
| Interest expense | 5,061 | 1,535 | 9,994 | 4,804 | |||||||||||||||||||
| General and administrative | 3,673 | 3,114 | 10,839 | 9,382 | |||||||||||||||||||
| Impairment charge | — | — | — | 520 | |||||||||||||||||||
| Depreciation and amortization | 8,165 | 1,787 | 16,781 | 4,740 | |||||||||||||||||||
| Total expenses | 26,094 | 9,840 | 57,910 | 29,133 | |||||||||||||||||||
| Total revenues less total expenses | (4,397) | (2,126) | (10,094) | (7,359) | |||||||||||||||||||
| Equity in earnings (loss) of unconsolidated joint ventures | 135 | (4,196) | 1,315 | (6,033) | |||||||||||||||||||
| Equity in earnings from sale of unconsolidated joint venture properties | 11,472 | 34,982 | 64,531 | 34,982 | |||||||||||||||||||
| Gain on sale of real estate | — | 414 | 6 | 7,693 | |||||||||||||||||||
| Gain on sale of partnership interest | — | — | — | 2,244 | |||||||||||||||||||
| Gain on insurance recoveries | 62 | — | 62 | — | |||||||||||||||||||
| Loss on extinguishment of debt | — | (902) | (563) | (902) | |||||||||||||||||||
| Net income from continuing operations | 7,272 | 28,172 | 55,257 | 30,625 | |||||||||||||||||||
| Income tax provision | 178 | 31 | 976 | 155 | |||||||||||||||||||
| Net income from continuing operations, net of taxes | 7,094 | 28,141 | 54,281 | 30,470 | |||||||||||||||||||
| Net income attributable to non-controlling interests | (35) | (35) | (107) | (102) | |||||||||||||||||||
| Net income attributable to common stockholders | $ | 7,059 | $ | 28,106 | $ | 54,174 | $ | 30,368 | |||||||||||||||
| Weighted average number of shares of common stock outstanding: | |||||||||||||||||||||||
| Basic | 17,928,197 | 17,261,520 | 17,721,700 | 16,916,623 | |||||||||||||||||||
| Diluted | 17,994,457 | 17,292,988 | 17,784,362 | 16,992,974 | |||||||||||||||||||
| Per share amounts attributable to common stockholders: | |||||||||||||||||||||||
| Basic | $ | 0.37 | $ | 1.55 | $ | 2.91 | $ | 1.71 | |||||||||||||||
| Diluted | $ | 0.37 | $ | 1.54 | $ | 2.89 | $ | 1.70 | |||||||||||||||
2
BRT Apartments Corp. (NYSE: BRT)
Operating Results of Unconsolidated Properties
(dollars in thousands, except per share data)
_____________________________________________________________________________________________________________________
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| Rental and other revenue | $ | 13,502 | $ | 29,818 | $ | 60,840 | $ | 95,495 | ||||||||||||||||||
| Total revenues | 13,502 | 29,818 | 60,840 | 95,495 | ||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||
| Real estate operating expenses | 6,512 | 14,587 | 27,523 | 45,523 | ||||||||||||||||||||||
| Interest expense | 2,843 | 7,568 | 13,762 | 24,562 | ||||||||||||||||||||||
| Depreciation | 3,113 | 8,288 | 14,957 | 28,464 | ||||||||||||||||||||||
| Total expenses | 12,468 | 30,443 | 56,242 | 98,549 | ||||||||||||||||||||||
| Total revenues less total expenses | 1,034 | (625) | 4,598 | (3,054) | ||||||||||||||||||||||
| Other equity earnings | 12 | 7 | 89 | 21 | ||||||||||||||||||||||
| Impairment of assets | — | — | — | (2,813) | ||||||||||||||||||||||
| Insurance recoveries | — | — | — | 2,813 | ||||||||||||||||||||||
| Gain on insurance recoveries | — | 1,246 | 567 | 1,246 | ||||||||||||||||||||||
| Gain on sale of real estate | 16,937 | 83,984 | 118,270 | 83,984 | ||||||||||||||||||||||
| Loss on extinguishment of debt | (573) | (9,401) | (3,491) | (9,401) | ||||||||||||||||||||||
| Net income income from joint ventures | $ | 17,410 | $ | 75,211 | $ | 120,033 | $ | 72,796 | ||||||||||||||||||
| BRT equity in earnings (loss) and equity in earnings from sale of unconsolidated joint venture properties | $ | 11,607 | $ | 30,786 | $ | 65,846 | $ | 28,949 | ||||||||||||||||||
3
BRT Apartments Corp. (NYSE: BRT)
Funds from Operations
(dollars in thousands)
____________________________________________________________________________________________________________________
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
| GAAP Net income attributable to common stockholders | $ | 7,059 | $ | 28,106 | $ | 54,174 | $ | 30,368 | ||||||||||||||||||
| Add: depreciation of properties | 8,165 | 1,787 | 16,781 | 4,740 | ||||||||||||||||||||||
| Add: our share of depreciation in unconsolidated joint venture properties | 1,657 | 5,514 | 9,234 | 18,389 | ||||||||||||||||||||||
| Add: impairment charge | — | — | — | 520 | ||||||||||||||||||||||
| Add: our share of impairment charge in unconsolidated joint venture properties | — | — | — | 2,010 | ||||||||||||||||||||||
| Deduct: our share of equity in earnings from sale of unconsolidated joint venture properties | (11,472) | (34,982) | (64,531) | (34,982) | ||||||||||||||||||||||
| Deduct: gain on sale of real estate and partnership interests | — | (414) | (6) | (9,937) | ||||||||||||||||||||||
| Adjust for non-controlling interests | (4) | (4) | (12) | (12) | ||||||||||||||||||||||
| NAREIT Funds from operations attributable to common stockholders | $ | 5,405 | $ | 7 | $ | 15,640 | $ | 11,096 | ||||||||||||||||||
| Adjustments for: straight-line rent accruals | 6 | (10) | 18 | (30) | ||||||||||||||||||||||
| Add: loss on extinguishment of debt | — | 902 | 563 | 902 | ||||||||||||||||||||||
| Add: our share of loss on extinguishment of debt from unconsolidated joint venture properties | 388 | 4,581 | 1,880 | 4,581 | ||||||||||||||||||||||
| Add: amortization of restricted stock and RSU expense | 1,208 | 843 | 3,183 | 1,950 | ||||||||||||||||||||||
| Add: amortization of deferred mortgage and debt costs | 191 | 62 | 370 | 215 | ||||||||||||||||||||||
| Add: our share of deferred mortgage costs from unconsolidated joint venture properties | 33 | 148 | 199 | 439 | ||||||||||||||||||||||
| Less: our share of insurance recovery from unconsolidated joint ventures | — | — | — | (2,010) | ||||||||||||||||||||||
| Less: gain on insurance proceeds | (62) | — | (62) | — | ||||||||||||||||||||||
| Less: our share of gain on insurance proceeds from unconsolidated joint venture | — | (880) | (432) | (880) | ||||||||||||||||||||||
| Adjustments for non-controlling interests | (1) | 2 | (3) | 6 | ||||||||||||||||||||||
| Adjusted funds from operations attributable to common stockholders | $ | 7,168 | $ | 5,655 | $ | 21,356 | $ | 16,269 | ||||||||||||||||||
4
Funds from Operations
(dollars in thousands, except per share data)
____________________________________________________________________________________________________________________
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
| GAAP Net income attributable to common stockholders | $ | 0.37 | $ | 1.54 | $ | 2.91 | $ | 1.69 | ||||||||||||||||||
| Add: depreciation of properties | 0.44 | 0.10 | 0.90 | 0.29 | ||||||||||||||||||||||
| Add: our share of depreciation in unconsolidated joint venture properties | 0.09 | 0.30 | 0.50 | 1.04 | ||||||||||||||||||||||
| Add: Impairment charge | — | — | — | 0.03 | ||||||||||||||||||||||
| Add: our share of impairment charge in unconsolidated joint venture properties | — | — | — | 0.11 | ||||||||||||||||||||||
| Deduct: our share of equity in earnings from sale of unconsolidated joint venture properties | (0.61) | (1.92) | (3.47) | (1.97) | ||||||||||||||||||||||
| Deduct: gain on sales of real estate and partnership interests | — | (0.02) | — | (0.56) | ||||||||||||||||||||||
| Adjustment for non-controlling interests | — | — | — | — | ||||||||||||||||||||||
| NAREIT Funds from operations per diluted common share | $ | 0.29 | $ | — | $ | 0.84 | $ | 0.63 | ||||||||||||||||||
| Adjust for straight line rent accruals | — | — | — | — | ||||||||||||||||||||||
| Add: loss on extinguishment of debt | — | 0.05 | 0.03 | 0.05 | ||||||||||||||||||||||
| Add: our share of loss on extinguishment of debt from unconsolidated joint venture properties | 0.02 | 0.25 | 0.10 | 0.26 | ||||||||||||||||||||||
| Add: amortization of restricted stock and RSU expense | 0.06 | 0.05 | 0.16 | 0.11 | ||||||||||||||||||||||
| Add: amortization of deferred mortgage and debt costs | 0.01 | — | 0.02 | 0.01 | ||||||||||||||||||||||
| Add: our share of deferred mortgage and debt costs from unconsolidated joint venture properties | — | 0.01 | 0.01 | 0.02 | ||||||||||||||||||||||
| Less: our share of insurance recovery from unconsolidated joint venture properties | — | — | — | (0.11) | ||||||||||||||||||||||
| Less: gain on insurance proceeds | — | — | — | — | ||||||||||||||||||||||
| Less: our share of gain on insurance proceeds from unconsolidated joint venture properties | — | (0.05) | (0.02) | (0.05) | ||||||||||||||||||||||
| Adjustments for non-controlling interests | — | — | — | — | ||||||||||||||||||||||
| Adjusted funds from operations per diluted common share | $ | 0.38 | $ | 0.31 | $ | 1.14 | $ | 0.92 | ||||||||||||||||||
| Diluted shares outstanding for FFO and AFFO | 18,928,648 | 18,215,924 | 18,712,740 | 17,820,909 | ||||||||||||||||||||||
5
BRT Apartments Corp. (NYSE: BRT)
Consolidated Balance Sheets
(amounts in thousands, except per share amounts)
_____________________________________________________________________________________________________________________
| September 30, 2022 | December 31, 2021 | |||||||||||||
| (unaudited) | (audited) | |||||||||||||
| ASSETS | ||||||||||||||
| Real estate properties, net of accumulated depreciation | $ | 655,645 | $ | 293,550 | ||||||||||
| Investment in unconsolidated joint ventures | 43,759 | 112,347 | ||||||||||||
| Cash and cash equivalents | 21,865 | 32,339 | ||||||||||||
| Restricted cash | 872 | 6,582 | ||||||||||||
| Other assets | 21,518 | 10,341 | ||||||||||||
| Real estate property held for sale | — | 4,379 | ||||||||||||
| Total Assets | $ | 743,659 | $ | 459,538 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Liabilities: | ||||||||||||||
| Mortgages payable, net of deferred costs | $ | 419,115 | $ | 199,877 | ||||||||||
| Junior subordinated notes, net of deferred costs | 37,118 | 37,103 | ||||||||||||
| Credit facility, net of deferred costs | 6,449 | — | ||||||||||||
| Accounts payable and accrued liabilities | 23,862 | 19,607 | ||||||||||||
| Total Liabilities | 486,544 | 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; 17,973 and 17,349 shares outstanding | 180 | 173 | ||||||||||||
| Additional paid-in capital | 271,904 | 258,161 | ||||||||||||
| Accumulated deficit | (14,952) | (55,378) | ||||||||||||
| Total BRT Apartments Corp. stockholders’ equity | 257,132 | 202,956 | ||||||||||||
| Non-controlling interests | (17) | (5) | ||||||||||||
| Total Equity | 257,115 | 202,951 | ||||||||||||
| Total Liabilities and Equity | $ | 743,659 | $ | 459,538 | ||||||||||
6
BRT Apartments Corp. (NYSE: BRT)
Balance Sheet of Unconsolidated Joint Venture Entities
(amounts in thousands, except per share amounts)
_____________________________________________________________________________________________________________________
At September 30, 2022, the Company held interests in unconsolidated joint ventures that own 8 multi-family properties (the "Unconsolidated Properties") and an interest in a development project. The condensed balance sheet below present information regarding such properties:
| September 30, 2022 | ||||||||
| ASSETS | ||||||||
| Real estate properties, net of accumulated depreciation | $ | 320,772 | ||||||
| Cash and cash equivalents | 14,706 | |||||||
| Other assets | 31,832 | |||||||
| Total Assets | $ | 367,310 | ||||||
| LIABILITIES AND EQUITY | ||||||||
| Liabilities: | ||||||||
| Mortgages payable, net of deferred costs | $ | 249,575 | ||||||
| Accounts payable and accrued liabilities | 11,819 | |||||||
| Total Liabilities | 261,394 | |||||||
| Commitments and contingencies | ||||||||
| Equity: | ||||||||
| Total unconsolidated joint venture equity | 105,916 | |||||||
| Total Liabilities and Equity | $ | 367,310 | ||||||
| BRT interest in joint venture equity | $ | 43,759 | ||||||
| Reconciliation: | ||||||||
| Unconsolidated Mortgages Payable: | ||||||||
BRT's pro-rata share | $ | 126,093 | ||||||
Partner's pro-rata share | 123,482 | |||||||
| Total | $ | 249,575 | ||||||
7
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Quarter ended September 30, 2022
(dollars in thousands, except monthly rent amounts)
_____________________________________________________________________________________________________________________
| Consolidated | ||||||||||||||||||||||||||||||||||||||||||||
| Units at period end | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Weighted Average Occupancy | Weighted Average Rent per Occ. Unit | ||||||||||||||||||||||||||||||||||||||
| Texas | 600 | $ | 2,325 | $ | 1,092 | $ | 1,233 | 9.9 | % | 94.3 | % | $ | 1,175 | |||||||||||||||||||||||||||||||
| Georgia | 688 | 2,596 | 1,177 | 1,419 | 11.3 | % | 97.0 | % | 1,139 | |||||||||||||||||||||||||||||||||||
| Florida | 518 | 2,331 | 981 | 1,350 | 10.8 | % | 95.8 | % | 1,411 | |||||||||||||||||||||||||||||||||||
| Ohio | 264 | 908 | 361 | 547 | 4.4 | % | 97.5 | % | 1,050 | |||||||||||||||||||||||||||||||||||
| Virginia | 220 | 1,140 | 442 | 698 | 5.6 | % | 97.1 | % | 1,601 | |||||||||||||||||||||||||||||||||||
| North Carolina | 264 | 835 | 329 | 506 | 4.0 | % | 96.2 | % | 1,143 | |||||||||||||||||||||||||||||||||||
| South Carolina | 474 | 2,060 | 965 | 1,095 | 8.8 | % | 97.0 | % | 1,327 | |||||||||||||||||||||||||||||||||||
| Tennessee | 702 | 3,524 | 1,518 | 2,006 | 16.1 | % | 96.7 | % | 1,598 | |||||||||||||||||||||||||||||||||||
| Alabama | 740 | 2,149 | 875 | 1,274 | 10.2 | % | 93.9 | % | 971 | |||||||||||||||||||||||||||||||||||
| Missouri | 174 | 907 | 380 | 527 | 4.2 | % | 95.4 | % | 1,637 | |||||||||||||||||||||||||||||||||||
| Mississippi | 776 | 2,532 | 962 | 1,570 | 12.5 | % | 97.8 | % | 1,162 | |||||||||||||||||||||||||||||||||||
| Legacy assets | — | 384 | 113 | 271 | 2.2 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||
| Totals | 5,420 | $ | 21,691 | $ | 9,195 | $ | 12,496 | 100 | % | 96.2 | % | $ | 1,291 | |||||||||||||||||||||||||||||||
Unconsolidated (Pro-Rata Share) (1) | ||||||||||||||||||||||||||||||||||||||||||||
| Units at period end | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Weighted Average Occupancy | Weighted Average Rent per Occ. Unit | ||||||||||||||||||||||||||||||||||||||
| Texas | 1,597 | $ | 3,495 | $ | 1,648 | $ | 1,847 | 49.6 | % | 95.8 | % | $ | 1,357 | |||||||||||||||||||||||||||||||
| South Carolina | 713 | 1,245 | 492 | 753 | 20.2 | % | 97.3 | % | 1,340 | |||||||||||||||||||||||||||||||||||
| Georgia | 271 | 889 | 435 | 454 | 12.2 | % | 93.0 | % | 1,427 | |||||||||||||||||||||||||||||||||||
| Alabama | 200 | 524 | 247 | 277 | 7.4 | % | 95.8 | % | 1,053 | |||||||||||||||||||||||||||||||||||
| Joint venture buyouts (2) | — | 752 | 312 | 440 | 11.8 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||
| Sold properties | — | 409 | 460 | (51) | (1.2) | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||
| Totals | 2,781 | $ | 7,314 | $ | 3,594 | $ | 3,720 | 100 | % | 96.0 | % | $ | 1,316 | |||||||||||||||||||||||||||||||
_________________________________________________________________________________
(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) Reflects the income and expenses for the properties for the portion of the period prior to the close of the applicable partner buyout. The income and expenses
for the period subsequent to the buyouts are included in the Consolidated information in the table above.
8
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Nine months ended September 30, 2022
(dollars in thousands, except monthly rent amounts)
____________________________________________________________________________________________________________________
| Consolidated | ||||||||||||||||||||||||||||||||||||||||||||
| Units at period end | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Weighted Average Occupancy | Weighted Average Rent per Occ. Unit | ||||||||||||||||||||||||||||||||||||||
| Texas | 600 | $ | 5,292 | $ | 2,526 | $ | 2,766 | 10.1% | 95.1 | % | $ | 1,181 | ||||||||||||||||||||||||||||||||
| Georgia | 688 | 6,175 | 2,769 | 3,406 | 12.4% | 97.4 | % | 1,165 | ||||||||||||||||||||||||||||||||||||
| Florida | 518 | 5,286 | 2,198 | 3,088 | 11.2% | 95.9 | % | 1,367 | ||||||||||||||||||||||||||||||||||||
| Ohio | 264 | 2,647 | 1,069 | 1,578 | 5.7% | 97.2 | % | 1,023 | ||||||||||||||||||||||||||||||||||||
| Virginia | 220 | 3,417 | 1,224 | 2,193 | 8.0% | 98.0 | % | 1,578 | ||||||||||||||||||||||||||||||||||||
| North Carolina | 264 | 835 | 329 | 506 | 1.8% | 96.2 | % | 1,143 | ||||||||||||||||||||||||||||||||||||
| South Carolina | 474 | 6,059 | 2,903 | 3,156 | 11.5% | 97.4 | % | 1,283 | ||||||||||||||||||||||||||||||||||||
| Tennessee | 702 | 10,282 | 4,280 | 6,002 | 21.8% | 97.2 | % | 1,543 | ||||||||||||||||||||||||||||||||||||
| Alabama | 740 | 2,416 | 985 | 1,431 | 5.2% | 94.3 | % | 1,093 | ||||||||||||||||||||||||||||||||||||
| Missouri | 174 | 1,731 | 713 | 1,018 | 3.7% | 95.8 | % | 1,592 | ||||||||||||||||||||||||||||||||||||
| Mississippi | 776 | 2,532 | 962 | 1,570 | 5.7% | 97.8 | % | 1,162 | ||||||||||||||||||||||||||||||||||||
| Legacy assets | — | 1,132 | 338 | 794 | 2.9% | N/A | N/A | |||||||||||||||||||||||||||||||||||||
| Totals | 5,420 | $ | 47,804 | $ | 20,296 | $ | 27,508 | 100.0% | 96.7 | % | $ | 1,298 | ||||||||||||||||||||||||||||||||
| Unconsolidated (Pro-Rata Share)(1) | ||||||||||||||||||||||||||||||||||||||||||||
| Units at period end | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Average Occupancy | Average Rent per Occ. Unit | ||||||||||||||||||||||||||||||||||||||
| Texas | 1,597 | $10,087 | $ | 4,852 | $ | 5,235 | 25.5% | 95.7% | $1,279 | |||||||||||||||||||||||||||||||||||
| South Carolina | 713 | 3,622 | 1,345 | 2,277 | 11.1% | 96.6% | 1,303 | |||||||||||||||||||||||||||||||||||||
| Georgia | 271 | 2,600 | 1,170 | 1,430 | 7.0% | 94.2% | 1,184 | |||||||||||||||||||||||||||||||||||||
| Alabama | 200 | 1,523 | 747 | 776 | 3.8% | 96.1% | 1,046 | |||||||||||||||||||||||||||||||||||||
| Joint venture buyouts (2) | — | 14,336 | 6,031 | 8,305 | 40.5% | N/A | N/A | |||||||||||||||||||||||||||||||||||||
| Sold properties | — | 5,432 | 2,945 | 2,487 | 12.1% | N/A | N/A | |||||||||||||||||||||||||||||||||||||
| Totals | 2,781 | $37,600 | $ | 17,090 | $ | 20,510 | 100% | 96.0% | $1,223 | |||||||||||||||||||||||||||||||||||
_________________________________________________________________________________
(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) Reflects the income and expenses for the properties for the portion of the period prior to the close of the applicable partner buyout. The income and expenses
for the period subsequent to the buyouts are included in the Consolidated information in the table above.
9
BRT Apartments Corp. (NYSE: BRT)
Consolidated Same Store Comparisons (1)
Quarter ended September 30, 2022 and 2021
(dollars in thousands, except monthly rent amounts)
_____________________________________________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | 2022 | 2021 | % Change | 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 448 | $ | 1,903 | $ | 1,701 | 11.9 | % | $ | 809 | $ | 782 | 3.5 | % | $ | 1,094 | $ | 919 | 19.0 | % | |||||||||||||||||||||||||||||||||||||||||||
| Florida | 276 | 1,341 | 1,192 | 12.5 | % | 503 | 496 | 1.4 | % | 838 | 696 | 20.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 192 | 794 | 680 | 16.8 | % | 383 | 387 | (1.0) | % | 411 | 293 | 40.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Ohio | 264 | 908 | 812 | 11.8 | % | 361 | 366 | (1.4) | % | 547 | 446 | 22.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Virginia | 220 | 1,140 | 1,087 | 4.9 | % | 442 | 433 | 2.1 | % | 698 | 654 | 6.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 208 | 980 | 867 | 13.0 | % | 474 | 415 | 14.2 | % | 506 | 452 | 11.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Totals | 1,608 | $ | 7,066 | $ | 6,339 | 11.5 | % | $ | 2,972 | $ | 2,879 | 3.2 | % | $ | 4,094 | $ | 3,460 | 18.3 | % | |||||||||||||||||||||||||||||||||||||||||||
| 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 97.2 | % | 99.0 | % | (1.8) | % | $ | 1,278 | $ | 1,125 | 13.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida | 96.9 | % | 98.3 | % | (1.4) | % | 1,508 | 1,267 | 19.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 95.0 | % | 98.3 | % | (3.4) | % | 1,252 | 1,042 | 20.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ohio | 97.5 | % | 96.1 | % | 1.5 | % | 1,050 | 964 | 8.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Virginia | 97.1 | % | 96.5 | % | 0.6 | % | 1,601 | 1,490 | 7.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 95.7 | % | 95.2 | % | 0.5 | % | 1,429 | 1,267 | 12.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average | 96.7 | % | 97.5 | % | (0.8) | % | $ | 1,340 | $ | 1,181 | 13.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
_______________________________
(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 under "Non-GAAP Financial Measures and
Definitions."
10
BRT Apartments Corp. (NYSE: BRT)
Consolidated Same Store Comparisons (1)
Nine months ended September 30, 2022 and 2021
(dollars in thousands, except monthly rent amounts)
____________________________________________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | 2022 | 2021 | % Change | 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 448 | $ | 5,482 | $ | 5,000 | 9.6 | % | $ | 2,401 | $ | 2,271 | 5.7 | % | $ | 3,081 | $ | 2,729 | 12.9 | % | |||||||||||||||||||||||||||||||||||||||||||
| Florida | 276 | 3,773 | 3,381 | 11.6 | % | 1,500 | 1,349 | 11.2 | % | 2,273 | 2,032 | 11.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 192 | 2,292 | 2,006 | 14.3 | % | 1,096 | 1,073 | 2.1 | % | 1,196 | 933 | 28.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Ohio | 264 | 2,647 | 2,394 | 10.6 | % | 1,069 | 1,032 | 3.6 | % | 1,578 | 1,362 | 15.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Virginia | 220 | 3,417 | 3,177 | 7.6 | % | 1,224 | 1,122 | 9.1 | % | 2,193 | 2,055 | 6.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 208 | 2,891 | 2,520 | 14.7 | % | 1,399 | 1,246 | 12.3 | % | 1,492 | 1,274 | 17.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Totals | 1,608 | $ | 20,502 | $ | 18,478 | 11.0 | % | $ | 8,689 | $ | 8,093 | 7.4 | % | $ | 11,813 | $ | 10,385 | 13.8 | % | |||||||||||||||||||||||||||||||||||||||||||
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 97.6 | % | 98.0 | % | (0.4) | % | $ | 1,233 | $ | 1,114 | 10.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida | 96.5 | % | 98.2 | % | (1.7) | % | 1,409 | 1,225 | 15.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 96.9 | % | 96.8 | % | 0.1 | % | 1,180 | 1,027 | 14.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ohio | 97.2 | % | 97.6 | % | (0.4) | % | 1,023 | 938 | 9.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Virginia | 98.0 | % | 98.1 | % | (0.1) | % | 1,578 | 1,448 | 9.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 96.6 | % | 95.5 | % | 1.2 | % | 1,373 | 1,215 | 13.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average | 97.2 | % | 97.5 | % | (0.3) | % | $ | 1,288 | $ | 1,153 | 11.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
_______________________________
(1) See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
(2) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI under "Non-GAAP Financial Measures and
Definitions."
11
BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons (1)
Quarter ended September 30, 2022 and 2021
BRT Pro-rata Share
(dollars in thousands, except monthly rent amounts)
________________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | 2022 | 2021 | % Change | 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 1,597 | $ | 3,495 | $ | 3,101 | 12.7 | % | $ | 1,648 | $ | 1,646 | 0.1 | % | $ | 1,847 | $ | 1,455 | 26.9 | % | |||||||||||||||||||||||||||||||||||||||||||
| Georgia | 271 | 889 | 807 | 10.2 | % | 435 | 328 | 32.6 | % | 454 | 479 | (5.2) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 713 | 1,244 | 1,141 | 9.0 | % | 492 | 492 | 0.0 | % | 752 | 649 | 15.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 200 | 524 | 482 | 8.7 | % | 247 | 247 | 0.0 | % | 277 | 235 | 17.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Totals | 2,781 | $ | 6,152 | $ | 5,531 | 11.2 | % | $ | 2,822 | $ | 2,713 | 4.0 | % | $ | 3,330 | $ | 2,818 | 18.2 | % | |||||||||||||||||||||||||||||||||||||||||||
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 95.8 | % | 96.6 | % | (0.8) | % | $ | 1,357 | $ | 1,184 | 14.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 93.0 | % | 96.1 | % | (3.2) | % | 1,427 | 1,266 | 12.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 97.1 | % | 97.2 | % | (0.1) | % | 1,405 | 1,286 | 9.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 97.0 | % | 96.0 | % | 1.0 | % | 1,000 | 921 | 8.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average | 95.9 | % | 96.7 | % | (0.8) | % | $ | 1,350 | $ | 1,199 | 12.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
________________________________
(1) See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
(2) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI and pro-rata share under "Non-GAAP Financial
Measures and Definitions."
12
BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons (1)
Nine months ended September 30, 2022 and 2021
BRT Pro-rata Share
(dollars in thousands, except monthly rent amounts)
_______________________________________________________________________________________
| Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Units | 2022 | 2021 | % Change | 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 1,597 | $ | 10,086 | $ | 8,891 | 13.4 | % | $ | 4,852 | $ | 4,653 | 4.3 | % | $ | 5,234 | $ | 4,238 | 23.5 | % | |||||||||||||||||||||||||||||||||||||||||||
| Georgia | 271 | 2,600 | 2,422 | 7.3 | % | 1,170 | 1,012 | 15.6 | % | 1,430 | 1,410 | 1.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 713 | 3,621 | 3,193 | 13.4 | % | 1,345 | 1,301 | 3.4 | % | 2,276 | 1,892 | 20.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 200 | 1,523 | 1,409 | 8.1 | % | 747 | 690 | 8.3 | % | 776 | 719 | 7.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Totals | 2,781 | $ | 17,830 | $ | 15,915 | 12.0 | % | $ | 8,114 | $ | 7,656 | 6.0 | % | $ | 9,716 | $ | 8,259 | 17.6 | % | |||||||||||||||||||||||||||||||||||||||||||
| Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 95.8 | % | 94.5 | % | 1.4 | % | $ | 1,301 | $ | 1,151 | 13.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 93.7 | % | 96.1 | % | (2.5) | % | 1,384 | 1,257 | 10.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 97.1 | % | 92.1 | % | 5.4 | % | 1,291 | 1,213 | 6.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alabama | 97.4 | % | 97.1 | % | 0.3 | % | 971 | 899 | 8.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average | 95.9 | % | 94.5 | % | 1.5 | % | $ | 1,281 | $ | 1,151 | 11.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
________________________________
(1) See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
(2) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI and pro-rata share under "Non-GAAP Financial
Measures and Definitions."
13
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data Combined
(dollars in thousands, except monthly rent amounts)
________________________________________________________________________________________
Quarter Ended September 30,
____________________________________________________
| Portfolio | 2022 | 2021 | Variance | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | Property Operating Expenses | NOI | Revenues | Property Operating Expenses | NOI | Revenues | Property Operating Expenses | NOI | |||||||||||||||||||||||||||||||||||||||||||||
| Consolidated | $ | 21,691 | $ | 9,195 | $ | 12,496 | $ | 7,709 | $ | 3,404 | $ | 4,305 | 181.4 | % | 170.1 | % | 190.3 | % | |||||||||||||||||||||||||||||||||||
| Unconsolidated (1) | 7,314 | 3,594 | 3,720 | 19,581 | 9,532 | 10,049 | (62.6) | % | (62.3) | % | (63.0) | % | |||||||||||||||||||||||||||||||||||||||||
| Combined | $ | 29,005 | $ | 12,789 | $ | 16,216 | $ | 27,290 | $ | 12,936 | $ | 14,354 | 6.3 | % | (1.1) | % | 13.0 | % | |||||||||||||||||||||||||||||||||||
| Same Store | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | Variance | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | Property Operating Expenses | NOI | Revenues | Property Operating Expenses | NOI | Revenues | Property Operating Expenses | NOI | |||||||||||||||||||||||||||||||||||||||||||||
| Consolidated | $ | 7,066 | $ | 2,972 | $ | 4,094 | $ | 6,339 | $ | 2,879 | $ | 3,460 | 11.5 | % | 3.2 | % | 18.3 | % | |||||||||||||||||||||||||||||||||||
| Unconsolidated (1) | 6,152 | 2,822 | 3,330 | 5,531 | 2,713 | 2,818 | 11.2 | % | 4.0 | % | 18.2 | % | |||||||||||||||||||||||||||||||||||||||||
| Combined | $ | 13,218 | $ | 5,794 | $ | 7,424 | $ | 11,870 | $ | 5,592 | $ | 6,278 | 11.4 | % | 3.6 | % | 18.3 | % | |||||||||||||||||||||||||||||||||||
(1) Unconsolidated amounts represent BRT's pro-rata share. See definition of pro-rata under "Non-GAAP Financial Measures and Definitions."
Nine months ended September 30,
| Portfolio | 2022 | 2021 | Variance | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | Property Operating Expenses | NOI | Revenues | Property Operating Expenses | NOI | Revenues | Property Operating Expenses | NOI | |||||||||||||||||||||||||||||||||||||||||||||
| Consolidated | $ | 47,804 | $ | 20,296 | $ | 27,508 | $ | 21,762 | $ | 9,687 | $ | 12,075 | 119.7 | % | 109.5 | % | 127.8 | % | |||||||||||||||||||||||||||||||||||
| Unconsolidated (1) | 37,600 | 17,090 | 20,510 | 61,282 | 29,279 | 32,003 | (38.6) | % | (41.6) | % | (35.9) | % | |||||||||||||||||||||||||||||||||||||||||
| Combined | $ | 85,404 | $ | 37,386 | $ | 48,018 | $ | 83,044 | $ | 38,966 | $ | 44,078 | 2.8 | % | (4.1) | % | 8.9 | % | |||||||||||||||||||||||||||||||||||
| Same Store | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | Variance | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | Property Operating Expenses | NOI | Revenues | Property Operating Expenses | NOI | Revenues | Property Operating Expenses | NOI | |||||||||||||||||||||||||||||||||||||||||||||
| Consolidated | $ | 20,502 | $ | 8,689 | $ | 11,813 | $ | 18,478 | $ | 8,093 | $ | 10,385 | 11.0 | % | 7.4 | % | 13.8 | % | |||||||||||||||||||||||||||||||||||
| Unconsolidated (1) (2) | 17,830 | 8,114 | 9,716 | 15,915 | 7,656 | 8,259 | 12.0 | % | 6.0 | % | 17.6 | % | |||||||||||||||||||||||||||||||||||||||||
| Combined | $ | 38,332 | $ | 16,803 | $ | 21,529 | $ | 34,393 | $ | 15,749 | $ | 18,644 | 11.5 | % | 6.7 | % | 15.5 | % | |||||||||||||||||||||||||||||||||||
_____________________________________________________________
(1) Unconsolidated amounts represent BRT's pro-rata share. See definition of pro-rata under "Non-GAAP Financial Measures and Definitions.".
(2) Includes the income and expenses for the sold JV's prior to the sale.
14
BRT Apartments Corp. (NYSE: BRT)
Acquisitions and Dispositions
(dollars in thousands)
________________________________________________________________________________________
| ACQUISITIONS | ||||||||||||||||||||||||||||||||||||||||||||
| Buyout of Joint Venture Interest | ||||||||||||||||||||||||||||||||||||||||||||
| Property/Location | Purchase Date | Units | Purchase Price | Pre-Acquisition ownership % in the JV | Post-Acquisition Ownership % | |||||||||||||||||||||||||||||||||||||||
| Verandas at Alamo - San Antonio, TX | 03/23/2022 | 288 | $ | 8,721 | 71.9 | % | 100 | % | ||||||||||||||||||||||||||||||||||||
| Vanguard Heights - Creve Coeur, MO | 04/07/2022 | 174 | 4,880 | 78.4 | % | 100 | % | |||||||||||||||||||||||||||||||||||||
| Jackson Square - Tallahassee, FL | 05/11/2022 | 242 | 7,215 | 80.0 | % | 100 | % | |||||||||||||||||||||||||||||||||||||
| Brixworth at Bridge Street - Huntsville, AL | 05/24/2022 | 208 | 10,697 | 80.0 | % | 100 | % | |||||||||||||||||||||||||||||||||||||
| Woodland Apartments - Boerne, TX | 05/26/2022 | 120 | 3,881 | 80.0 | % | 100 | % | |||||||||||||||||||||||||||||||||||||
| Grove at River Place - Macon, GA | 06/30/2022 | 240 | 7,485 | 80.0 | % | 100 | % | |||||||||||||||||||||||||||||||||||||
| Civic Center I - Southaven, MS | 07/12/2022 | 392 | 18,233 | 75.0 | % | 100 | % | |||||||||||||||||||||||||||||||||||||
| Civic Center II - Southaven, MS | 07/12/2022 | 384 | 17,942 | 75.0 | % | 100 | % | |||||||||||||||||||||||||||||||||||||
| Abbotts Run - Wilmington, NC | 07/14/2022 | 264 | 9,010 | 75.0 | % | 100 | % | |||||||||||||||||||||||||||||||||||||
| Somerset At Trussville - Trussville, AL | 07/19/2022 | 328 | 10,558 | 80.0 | % | 100 | % | |||||||||||||||||||||||||||||||||||||
| Magnolia Pointe - Madison, AL | 08/03/2022 | 204 | 7,246 | 80.0 | % | 100 | % | |||||||||||||||||||||||||||||||||||||
| 2,844 | $ | 105,868 | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition of Joint Venture Interest in Development Project | ||||||||||||||||||||||||||||||||||||||||||||
| Property/Location | Purchase Date | Planned Units | Purchase Price | Acquisition ownership % in the JV | ||||||||||||||||||||||||||||||||||||||||
Stono Oaks - Johns Island, SC (a) | 3/10/2022 | 240 | $ | 3,500 | 17.45 | % | ||||||||||||||||||||||||||||||||||||||
| DISPOSITIONS | ||||||||||||||||||||||||||||||||||||||||||||
| Disposition of Property by Unconsolidated Joint Ventures | ||||||||||||||||||||||||||||||||||||||||||||
| Property/Location | Sale Date | No. of Units | Interest Owned | Sales Price | BRT's share of Mortgage Prepayment charge | Gain on Sale | BRT's Share of Gain on Sale | |||||||||||||||||||||||||||||||||||||
| Verandas at Shavano - San Antonio, TX | 2/8/2022 | 288 | 65 | % | $ | 53,750 | $ | — | $ | 23,652 | $ | 12,961 | ||||||||||||||||||||||||||||||||
| Retreat at Cinco Ranch - Katy, TX | 6/14/2022 | 268 | 75 | % | 68,300 | 686 | 30,595 | 17,378 | ||||||||||||||||||||||||||||||||||||
| The Vive - Kannapolis, NC | 6/30/2022 | 312 | 65 | % | 91,250 | 787 | 47,086 | 22,720 | ||||||||||||||||||||||||||||||||||||
| Waters Edge - Columbia, SC | 8/31/2022 | 204 | 80 | % | 32,400 | 388 | 16,937 | 11,472 | ||||||||||||||||||||||||||||||||||||
| 1,072 | $ | 245,700 | $ | 1,861 | $ | 118,270 | $ | 64,531 | ||||||||||||||||||||||||||||||||||||
15
BRT Apartments Corp. (NYSE: BRT)
Value-Add Program and Capital Expenditures
Quarter ended September 30, 2022
________________________________________________________________________________________
| Value-Add Program | ||||||||||||||||||||||||||||||||
| (Includes consolidated and unconsolidated amounts) | ||||||||||||||||||||||||||||||||
| Units Rehabilitated (1) | Estimated Rehab Costs (2) | Estimated Rehab Costs Per unit | Estimated Average Monthly Rent Increase (3) | Estimated Annualized ROI (3) | Estimated units available to be renovated over next 24 months | |||||||||||||||||||||||||||
| 127 | $ | 979,000 | $ | 7,709 | $ | 294 | 46% | 800 | ||||||||||||||||||||||||
| (1) Refers to rehabilitated units with respect to which a new lease or renewal lease was entered into during the period. | ||||||||||||||||||||||||||||||||
| (2) Reflects rehab costs incurred during the current and prior periods with respect to units completed, in which a new lease or renewal lease was entered into during the current period. | ||||||||||||||||||||||||||||||||
| (3) These results are not necessarily indicative of the results that would be generated if such improvements were made across our portfolio of properties or at any particular property. Rents at a property may increase for reasons wholly unrelated to property improvements, such as changes in demand for rental units in a particular market or sub-market. Even if units are available to be renovated, the Company may decide not to renovate such units. | ||||||||||||||||||||||||||||||||
| Capital Expenditures | |||||||||||||||||
| (Includes consolidated and unconsolidated amounts) | |||||||||||||||||
| Gross Capital Expenditures | Less: JV Partner Share | BRT Share of Capital Expenditures (4) | |||||||||||||||
| Estimated Recurring Capital Expenditures (1) | $ | 247,000 | $ | 39,000 | $ | 208,000 | |||||||||||
| Estimated Non-Recurring Capital Expenditures (2) | 3,195,000 | 315,000 | 2,880,000 | ||||||||||||||
| Total Capital Expenditures | $ | 3,442,000 | $ | 354,000 | $ | 3,088,000 | |||||||||||
| Replacements (operating expense) (3) | $ | 814,000 | $ | 113,000 | $ | 701,000 | |||||||||||
| Estimated Recurring Capital Expenditures and Replacements per unit (8,201 units) | $ | 129 | $ | 18 | $ | 111 | |||||||||||
| (1) Recurring capital expenditures represent our estimate of expenditures incurred at the property to maintain the property's existing operations - it excludes revenue enhancing projects. | |||||||||||||||||
(2) Non-recurring capital expenditures represent our estimate of significant improvements to the common areas, property exteriors, or interior units of the property, and revenue enhancing upgrades. | |||||||||||||||||
| (3) Replacements are expensed as incurred at the property. | |||||||||||||||||
| (4) Based on BRT's percentage equity interest. | |||||||||||||||||
16
BRT Apartments Corp. (NYSE: BRT)
Debt Analysis
As of September 30, 2022
(dollars in thousands)
____________________________________________________________________________________________________________________________________
| Consolidated | ||||||||||||||||||||||||||||||||
Year | Total Principal Payments | Scheduled Amortization | Principal Payments Due at Maturity | Percent of Total Principal Payments Due At Maturity | Weighted Average Interest Rate (1) | |||||||||||||||||||||||||||
| 2022 | $ | 15,492 | $ | 588 | $ | 14,904 | (2) | 4 | % | 3.79 | % | |||||||||||||||||||||
| 2023 | 2,692 | 2,692 | — | — | % | — | % | |||||||||||||||||||||||||
| 2024 | 3,666 | 3,666 | — | — | % | — | % | |||||||||||||||||||||||||
| 2025 | 20,194 | 4,819 | 15,375 | 4 | % | 4.42 | % | |||||||||||||||||||||||||
| 2026 | 74,777 | 4,709 | 70,068 | 17 | % | 4.12 | % | |||||||||||||||||||||||||
| Thereafter | 306,621 | 5,740 | 300,881 | 75 | % | 3.96 | % | |||||||||||||||||||||||||
| Total | $ | 423,442 | $ | 22,214 | $ | 401,228 | 100 | % | ||||||||||||||||||||||||
Unconsolidated (BRT pro rata share) | ||||||||||||||||||||||||||||||||
| Year | Total Principal Payments | Scheduled Amortization | Principal Payments Due at Maturity | Percent of Total Principal Payments Due At Maturity | Weighted Average Interest Rate (1) | |||||||||||||||||||||||||||
| 2022 | $ | 383 | $ | 383 | — | — | % | — | % | |||||||||||||||||||||||
| 2023 | 1,778 | 1,778 | $ | — | — | % | — | % | ||||||||||||||||||||||||
| 2024 | 2,057 | 2,057 | — | — | % | — | % | |||||||||||||||||||||||||
| 2025 | 2,154 | 2,154 | — | — | % | — | % | |||||||||||||||||||||||||
| 2026 | 19,641 | 2,130 | 17,511 | 15 | % | 3.97 | % | |||||||||||||||||||||||||
| Thereafter | 100,080 | 3,713 | 96,367 | 85 | % | 3.88 | % | |||||||||||||||||||||||||
| Total | $ | 126,093 | $ | 12,215 | $ | 113,878 | 100 | % | ||||||||||||||||||||||||
| Combined (3) | ||||||||||||||||||||||||||||||||
| Year | Total Principal Payments | Scheduled Amortization | Principal Payments Due at Maturity | Percent of Total Principal Payments Due At Maturity | Weighted Average Interest Rate (1) | |||||||||||||||||||||||||||
| 2022 | $ | 15,875 | $ | 971 | $ | 14,904 | (2) | 3 | % | 3.79 | % | |||||||||||||||||||||
| 2023 | 4,470 | 4,470 | — | — | — | % | ||||||||||||||||||||||||||
| 2024 | 5,723 | 5,723 | — | — | — | % | ||||||||||||||||||||||||||
| 2025 | 22,348 | 6,973 | 15,375 | 3 | % | 4.42 | % | |||||||||||||||||||||||||
| 2026 | 94,418 | 6,839 | 87,579 | 17 | % | 4.09 | % | |||||||||||||||||||||||||
| Thereafter | 406,701 | 9,453 | 397,248 | 77 | % | 3.94 | % | |||||||||||||||||||||||||
| Total | $ | 549,535 | $ | 34,429 | $ | 515,106 | 100 | % | ||||||||||||||||||||||||
| Weighted Average Remaining Term to Maturity (2) | 7.49 | years | ||||||||||||||||||||||||||||||
| Weighted Average Interest Rate (2) | 3.97 | % | ||||||||||||||||||||||||||||||
| Debt Service Coverage Ratio for the quarter ended September 30, 2022 | 1.78 | (4) | ||||||||||||||||||||||||||||||
| (1) Based on principal payments due at maturity. | ||||||||||||||||||||||||||||||||
| (2) This loan was paid off on October 31, 2022.. | ||||||||||||||||||||||||||||||||
(3) Includes consolidated and BRT's pro rata share of unconsolidated amounts. | ||||||||||||||||||||||||||||||||
| (4) See definition under "Non-GAAP Financial Measures and Definitions." Includes consolidated and 100% of the unconsolidated amounts. | ||||||||||||||||||||||||||||||||
| Junior Subordinated Notes | |||||||||||
| Principal Balance | $37,400 | ||||||||||
| Interest Rate | 3 month LIBOR + 2.00% (i.e, 4.782% at 9/30/2022) | ||||||||||
| Maturity | April 30, 2036 | ||||||||||
| Credit Facility (as of September 30, 2022) | |||||||||||
| Maximum Amount Available | Up to $60,000 | ||||||||||
| Amount Outstanding (1) | $7,000 | ||||||||||
| Interest Rate (2) | Prime (floor of 3.50%) | ||||||||||
| Maturity | September, 2025 | ||||||||||
| (1) As of November 4, 2022, the amount outstanding is $19,000 (2) As of November 4, 2022, the interest rate in effect is 7.00% | |||||||||||
17
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)
________________________________________________________________________________________
We compute NOI by adjusting net income (loss) to (a) add back (1) depreciation expense, (2) general and administrative expenses, (3) interest expense, (4) loss on extinguishment of debt, (5) equity in loss of unconsolidated joint ventures, (6) provision for taxes, (7) the impact of non-controlling interests, (8) impairment charge, and (b) deduct (1) other income, (2) gain on sale of real estate, and (3) gain on insurance recoveries related to casualty loss. We define "Same Store NOI" as NOI for all our consolidated properties that were owned for the entirety of the periods being presented, other than properties in lease up and developments. Other REIT’s may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to other REIT’s. We believe NOI provides an operating perspective not immediately apparent from GAAP operating income or net (loss) income. NOI is one of the measures we use to evaluate our performance because it (i) measures the core operations of property performance by excluding corporate level expenses and other items unrelated to property operating performance and (ii) captures trends in rental housing and property operating expenses. We view Same Store NOI as an important measure of operating performance because it allows a comparison of operating results of properties owned for the entirety of the periods presented and eliminates variations caused by acquisitions or dispositions during the periods. However, NOI should only be used as an alternative measure of our financial performance.
The following tables provides a reconciliation of NOI to net income attributable to common stockholders as computed in accordance with GAAP for the periods presented for the consolidated properties:
| Consolidated | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
| GAAP Net income attributable to common stockholders | $ | 7,059 | $ | 28,106 | $ | 54,174 | $ | 30,368 | ||||||||||||||||||
| Less: Other Income | (6) | (5) | (12) | (12) | ||||||||||||||||||||||
| Add: Interest expense | 5,061 | 1,535 | 9,994 | 4,804 | ||||||||||||||||||||||
| General and administrative | 3,673 | 3,114 | 10,839 | 9,382 | ||||||||||||||||||||||
| Impairment charge | — | — | — | 520 | ||||||||||||||||||||||
| Depreciation and amortization | 8,165 | 1,787 | 16,781 | 4,740 | ||||||||||||||||||||||
| Provision for taxes | 178 | 31 | 976 | 155 | ||||||||||||||||||||||
| Less: Gain on sale of real estate | — | (414) | (6) | (7,693) | ||||||||||||||||||||||
| Gain on the sale of partnership interest | — | — | — | (2,244) | ||||||||||||||||||||||
| Equity in earnings from sale of unconsolidated joint venture properties | (11,472) | (34,982) | (64,531) | (34,982) | ||||||||||||||||||||||
| Gain on insurance recoveries | (62) | — | (62) | — | ||||||||||||||||||||||
| Add: Loss on extinguishment of debt | — | 902 | 563 | 902 | ||||||||||||||||||||||
| Adjust for: Equity in loss (earnings) from sale of unconsolidated joint venture properties | (135) | 4,196 | (1,315) | 6,033 | ||||||||||||||||||||||
| Add: Net loss attributable to non-controlling interests | 35 | 35 | 107 | 102 | ||||||||||||||||||||||
| Net Operating Income | $ | 12,496 | $ | 4,305 | $ | 27,508 | $ | 12,075 | ||||||||||||||||||
| Less: Non-same store Net Operating Income (loss) | $ | 8,402 | $ | 845 | $ | (15,695) | $ | (1,690) | ||||||||||||||||||
| Same store Net Operating Income | $ | 4,094 | $ | 3,460 | $ | 11,813 | $ | 10,385 | ||||||||||||||||||
18
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)
________________________________________________________________________________________
The following tables provides a reconciliation of NOI to net income attributable to common stockholders as computed in accordance with GAAP for the periods presented for BRT's pro rata share of the unconsolidated properties:
| Unconsolidated | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
| BRT equity in earnings (loss) from joint ventures | $ | 11,607 | $ | 30,786 | $ | 65,846 | $ | 28,949 | ||||||||||||||||||
| Add: Interest expense | 1,541 | 5,037 | 8,591 | 15,967 | ||||||||||||||||||||||
| Depreciation | 1,657 | 5,514 | 9,234 | 18,389 | ||||||||||||||||||||||
| Loss on extinguishment of debt | 388 | 4,581 | 1,876 | 4,581 | ||||||||||||||||||||||
| Less: Impairment of asset | — | — | — | 2,010 | ||||||||||||||||||||||
| Insurance recovery | — | — | — | (2,010) | ||||||||||||||||||||||
| Gain on insurances recoveries | — | (880) | (428) | (880) | ||||||||||||||||||||||
| Gain on sale of real estate | (11,472) | (34,982) | (64,531) | (34,982) | ||||||||||||||||||||||
| Equity in earnings of joint ventures | (12) | (7) | (89) | (21) | ||||||||||||||||||||||
| Net Operating Income | $ | 3,709 | $ | 10,049 | $ | 20,499 | $ | 32,003 | ||||||||||||||||||
| Less: Non-same store Net Operating Income | $ | (390) | $ | (7,232) | (10,793) | (23,744) | ||||||||||||||||||||
| Same store Net Operating Income | $ | 3,319 | $ | 2,817 | $ | 9,706 | $ | 8,259 | ||||||||||||||||||
| Consolidated same store Net Operating Income | $ | 4,094 | $ | 3,460 | 11,813 | 10,385 | ||||||||||||||||||||
| Unconsolidated same store Net Operating Income | 3,319 | 2,817 | 9,706 | 8,259 | ||||||||||||||||||||||
| Combined same store Net Operating Income | $ | 7,413 | 7,413,000 | $ | 6,277 | $ | 21,519 | $ | 18,644 | |||||||||||||||||
19
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)
_____________________________________________________________________________________________________________________
The condensed income statements for the unconsolidated properties below, present, for the periods indicated, a reconciliation of the information that appears in note 8 to the consolidated financial statements included in BRT's Quarterly Report on Form 10-Q for the period ended September 30, 2022 to the BRT pro-rata information presented below:
| Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||
| Total | Partner Share | BRT Share | ||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| Rental and other revenue | $ | 13,502 | $ | 6,188 | $ | 7,314 | ||||||||||||||||||||
| Total revenues | 13,502 | 6,188 | 7,314 | |||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||
| Real estate operating expenses | 6,512 | 2,918 | 3,594 | |||||||||||||||||||||||
| Interest expense | 2,843 | 1,302 | 1,541 | |||||||||||||||||||||||
| Depreciation | 3,113 | 1,456 | 1,657 | |||||||||||||||||||||||
| Total expenses | 12,468 | 5,676 | 6,792 | |||||||||||||||||||||||
| Total revenues less total expenses | 1,034 | 512 | 522 | |||||||||||||||||||||||
| Other equity earnings | 12 | — | 12 | |||||||||||||||||||||||
| Gain on insurance recoveries | — | — | — | |||||||||||||||||||||||
| Gain on sale of real estate properties | 16,937 | 5,465 | 11,472 | |||||||||||||||||||||||
| Loss on extinguishment of debt | (573) | (185) | (388) | |||||||||||||||||||||||
| Net income | $ | 17,410 | $ | 5,792 | $ | 11,618 | ||||||||||||||||||||
| Three Months Ended September 30, 2021 | ||||||||||||||||||||
| Total | Partner Share | BRT Share | ||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Rental and other revenue | $ | 29,818 | $ | 10,237 | $ | 19,581 | ||||||||||||||
| Total revenues | 29,818 | 10,237 | 19,581 | |||||||||||||||||
| Expenses: | ||||||||||||||||||||
| Real estate operating expenses | 14,587 | 5,055 | 9,532 | |||||||||||||||||
| Interest expense | 7,568 | 2,531 | 5,037 | |||||||||||||||||
| Depreciation | 8,288 | 2,774 | 5,514 | |||||||||||||||||
| Total expenses | 30,443 | 10,360 | 20,083 | |||||||||||||||||
| Total revenues less total expenses | (625) | (123) | (502) | |||||||||||||||||
| Other equity earnings | 7 | — | 7 | |||||||||||||||||
| Gain on insurance recoveries | 1,246 | 366 | 880 | |||||||||||||||||
| Gain on sale of real estate properties | 83,984 | 49,002 | 34,982 | |||||||||||||||||
| Loss on extinguishment of debt | (9,401) | (4,820) | (4,581) | |||||||||||||||||
| Net loss | $ | 75,211 | $ | 44,425 | $ | 30,786 | ||||||||||||||
20
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)
_____________________________________________________________________________________________________________________
The condensed income statements for the unconsolidated properties below present for the periods indicated a reconciliation of the information that appears in note 8 of BRT's Annual report on Form 10-Q to the BRT pro rata information presented here in this supplemental.
| Nine Months Ended September 30, 2022 | ||||||||||||||||||||
| Total | Partner Share | BRT Share | ||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Rental and other revenue | $ | 60,840 | $ | 23,240 | $ | 37,600 | ||||||||||||||
| Total revenues | 60,840 | 23,240 | 37,600 | |||||||||||||||||
| Expenses: | ||||||||||||||||||||
| Real estate operating expenses | 27,523 | 10,433 | 17,090 | |||||||||||||||||
| Interest expense | 13,762 | 5,171 | 8,591 | |||||||||||||||||
| Depreciation | 14,957 | 5,723 | 9,234 | |||||||||||||||||
| Total expenses | 56,242 | 21,327 | 34,915 | |||||||||||||||||
| Total revenues less total expenses | 4,598 | 1,913 | 2,685 | |||||||||||||||||
| Other equity earnings | 89 | — | 89 | |||||||||||||||||
| Gain on insurance recoveries | 567 | 139 | 428 | |||||||||||||||||
| Gain on sale of real estate properties | 118,270 | 53,739 | 64,531 | |||||||||||||||||
| Loss on extinguishment of debt | (3,491) | (1,615) | (1,876) | |||||||||||||||||
| Net income | $ | 120,033 | $ | 54,176 | $ | 65,857 | ||||||||||||||
| Nine Months Ended September 30, 2021 | ||||||||||||||||||||
| Total | Partner Share | BRT Share | ||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Rental and other revenue | $ | 95,495 | $ | 34,213 | $ | 61,282 | ||||||||||||||
| Total revenues | 95,495 | 34,213 | 61,282 | |||||||||||||||||
| Expenses: | ||||||||||||||||||||
| Real estate operating expenses | 45,523 | 16,244 | 29,279 | |||||||||||||||||
| Interest expense | 24,562 | 8,595 | 15,967 | |||||||||||||||||
| Depreciation | 28,464 | 10,075 | 18,389 | |||||||||||||||||
| Total expenses | 98,549 | 34,914 | 63,635 | |||||||||||||||||
| Total revenues less total expenses | (3,054) | (701) | (2,353) | |||||||||||||||||
| Other equity earnings | 21 | — | 21 | |||||||||||||||||
| Impairment charges | (2,813) | (803) | (2,010) | |||||||||||||||||
| Insurance recoveries | 2,813 | 803 | 2,010 | |||||||||||||||||
| Gain on insurance recoveries | 1,246 | 366 | 880 | |||||||||||||||||
| Gain on sale of real estate properties | 83,984 | 49,002 | 34,982 | |||||||||||||||||
| Loss on extinguishment of debt | (9,401) | (4,820) | (4,581) | |||||||||||||||||
| Net loss | $ | 72,796 | $ | 43,847 | $ | 28,949 | ||||||||||||||
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BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)
________________________________________________________________________________________
Funds from Operations (FFO)
FFO is a non-GAAP financial performance measure defined by the National Association of Real Estate Investment Trusts and is widely recognized by investors and analysts as one measure of operating performance of a REIT. The FFO calculation excludes items such as real estate depreciation and amortization, gains and losses on the sale of real estate assets and impairment on depreciable assets. Historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, it is management’s view, and we believe the view of many industry investors and analysts, that the presentation of operating results for a REIT using the historical accounting for depreciation is insufficient. FFO excludes gains and losses from the sale of real estate, which we believe provides management and investors with a helpful additional measure of the performance of our real estate portfolio, as it allows for comparisons, year to year, that reflect the impact on operations from trends in items such as occupancy rates, rental rates, operating costs, general, administrative and other expenses, and interest expenses.
Adjusted Funds from Operations (AFFO)
AFFO excludes from FFO straight line rent adjustments, loss on extinguishment of debt, amortization of restricted stock and RSU expense, amortization of deferred mortgage costs and gain on insurance recovery. AFFO provides investors with supplemental performance information that is consistent with the performance models and analysis used by management and provides investors a view of the performance of our portfolio over time, including after the time we cease to acquire properties on a frequent and regular basis. We believe that AFFO enables investors to compare the performance of our portfolio with other REITs that have not recently engaged in acquisitions, as well as a comparison of our performance with that of other non-traded REITs, as AFFO, or an equivalent measure is routinely reported by non-traded REITs, and we believe often used by analysts and investors for comparison purposes.
Debt Service Coverage Ratio
Debt service coverage ratio is net operating income ("NOI") divided by total debt service and includes both consolidated and unconsolidated assets.
Total Debt Service
Total debt service is the cash required to cover the repayment of interest and principal on a debt for a particular period. Total debt service is used in the calculation of the debt service coverage ratio which is used to determine the borrower’s ability to make debt service payments.
Same Store
Same store properties refer to stabilized properties 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 (as described below) 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.
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.
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BRT Apartments Corp. (NYSE: BRT)
Portfolio Table
As of 11/01/2022
___________________________________________________________________________________________
| Property | City | State | Year Built | Year Acquired | Property Age | Units | Q3 2022 Avg. Occupancy | Q3 2022 Avg. Rent per Occ. Unit | % Ownership | |||||||||||||||||||||||
| Consolidated Properties | ||||||||||||||||||||||||||||||||
| Abbotts Run | Wilmington | NC | 2001 | 2020 | 22 | 264 | 96.2% | $ | 1,143 | 100 | % | |||||||||||||||||||||
| Avalon | Pensacola | FL | 2008 | 2014 | 15 | 276 | 96.9% | 1,508 | 100 | % | ||||||||||||||||||||||
| Avondale Station | Decatur | GA | 1950 | 2012 | 73 | 212 | 96.7% | 1,342 | 100 | % | ||||||||||||||||||||||
| Bell's Bluff | Nashville | TN | 2018 | 2018 | 5 | 402 | 97.5% | 1,773 | 100 | % | ||||||||||||||||||||||
| Brixworth at Bridgestreet | Huntsville | AL | 1985 | 2013 | 38 | 208 | 91.2% | 971 | 100 | % | ||||||||||||||||||||||
| Civic Center 1 | Southaven | MS | 2002 | 2016 | 21 | 392 | 98.4% | 1,127 | 100 | % | ||||||||||||||||||||||
| Civic Center 2 | Southaven | MS | 2005 | 2016 | 18 | 384 | 97.2% | 1,199 | 100 | % | ||||||||||||||||||||||
| Crestmont at Thornblade | Greenville | SC | 1998 | 2018 | 25 | 266 | 97.7% | 1,248 | 100 | % | ||||||||||||||||||||||
| Crossings of Bellevue | Nashville | TN | 1985 | 2014 | 38 | 300 | 96.0% | 1,358 | 100 | % | ||||||||||||||||||||||
| Grove at River Place | Macon | GA | 1988 | 2016 | 35 | 240 | 96.8% | 878 | 100 | % | ||||||||||||||||||||||
| Jackson Square | Tallahassee | FL | 1996 | 2017 | 27 | 242 | 94.6% | 1,298 | 100 | % | ||||||||||||||||||||||
| Kilburn Crossing | Fredericksburg | VA | 2005 | 2016 | 18 | 220 | 97.1% | 1,601 | 100 | % | ||||||||||||||||||||||
| Magnolia Pointe | Madison | AL | 1991 | 2017 | 32 | 204 | 91.9% | 1,194 | 100 | % | ||||||||||||||||||||||
| Newbridge Commons | Columbus | OH | 1999 | 2013 | 24 | 264 | 97.5% | 1,050 | 100 | % | ||||||||||||||||||||||
| Parkway Grande | San Marcos | TX | 2014 | 2015 | 9 | 192 | 95.0% | 1,252 | 100 | % | ||||||||||||||||||||||
| Silvana Oaks | North Charleston | SC | 2010 | 2012 | 13 | 208 | 95.7% | 1,429 | 100 | % | ||||||||||||||||||||||
| Somerset at Trussville | Trussville | AL | 2007 | 2019 | 16 | 328 | 97.1% | 1,194 | 100 | % | ||||||||||||||||||||||
| Vanguard Heights | Creve Coeur | MO | 2016 | 2017 | 7 | 174 | 95.4% | 1,637 | 100 | % | ||||||||||||||||||||||
| Verandas at Alamo Ranch | San Antonio | TX | 2015 | 2016 | 8 | 288 | 91.8% | 1,128 | 100 | % | ||||||||||||||||||||||
| Woodland Apartments | Boerne | TX | 2007 | 2017 | 16 | 120 | 99.2% | 1,161 | 100 | % | ||||||||||||||||||||||
| Woodland Trails | LaGrange | GA | 2010 | 2015 | 13 | 236 | 97.6% | 1,220 | 100 | % | ||||||||||||||||||||||
| Weighted Avg./Total Consolidated | 22 | 5,420 | ||||||||||||||||||||||||||||||
| Properties owned by Unconsolidated Joint Ventures | ||||||||||||||||||||||||||||||||
| Canalside Lofts | Columbia | SC | 2008/2013 | 2017 | 15 | 374 | 96.4% | 1,321 | 32 | % | ||||||||||||||||||||||
| Canalside Sola | Columbia | SC | 2018 | 2018 | 5 | 339 | 98.0% | 1,496 | 46 | % | ||||||||||||||||||||||
| Chatham Court and Reflections | Dallas | TX | 1986 | 2016 | 37 | 494 | 96.1% | 1,164 | 50 | % | ||||||||||||||||||||||
| Gateway Oaks | Forney | TX | 2016 | 2016 | 7 | 313 | 97.7% | 1,297 | 50 | % | ||||||||||||||||||||||
| Landings of Carrier Parkway | Grand Prairie | TX | 2001 | 2018 | 22 | 281 | 94.9% | 1,313 | 50 | % | ||||||||||||||||||||||
| Mercer Crossing | Dallas | TX | 2014/2016 | 2017 | 9 | 509 | 94.8% | 1,609 | 50 | % | ||||||||||||||||||||||
| Pointe at Lenox Park | Atlanta | GA | 1989 | 2016 | 34 | 271 | 93.0% | 1,427 | 74 | % | ||||||||||||||||||||||
| The Village at Lakeside | Auburn | AL | 1988 | 2019 | 35 | 200 | 97.0% | 1,000 | 80 | % | ||||||||||||||||||||||
| Weighted Avg./Total Unconsolidated | 20 | 2,781 | ||||||||||||||||||||||||||||||
| Development | ||||||||||||||||||||||||||||||||
| Stono Oaks (1) | Johns Island | SC | ||||||||||||||||||||||||||||||
| Weighted Avg./Total Portfolio | 21 | 8,201 | ||||||||||||||||||||||||||||||
___________________________
(1) Purchased a 17.45% interest in a planned 240-unit development property
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