BRT APARTMENTS CORP. REPORTS SECOND QUARTER RESULTS FOR 2022
– Net Income and AFFO Per Diluted Share Increase 461.8% and 19.4%, Respectively –
– Year-to-Date, Acquired Partners’ Remaining Interests in 11 Properties for $105.45 Million –
Great Neck, New York – August 8, 2022 - BRT APARTMENTS CORP. (NYSE:BRT), a real estate investment trust that owns, operates, and, to a lesser extent, develops, multi-family properties, today reported that for the three months ended June 30, 2022, it generated net income of $35.61 million, or $1.91 per diluted share, Funds from Operations, or FFO1, of $3.77 million, or $0.20 per diluted share, and Adjusted Funds from Operations, or AFFO, of $6.95 million, or $0.37 per diluted share.
Jeffrey A. Gould, President and Chief Executive Officer stated, “We are excited to have produced another quarter of excellent execution and portfolio performance as our properties in growth markets continue to benefit from population growth and job in-migration, as well as a shortage of quality housing. Furthermore, we have made significant progress on our efforts to grow and improve our portfolio through targeted dispositions and the acquisition of our partners’ remaining interests in many joint ventures. Our exposure to the adverse impacts of inflation is lessened by our fixed rate mortgage debt and we have ample liquidity to address, and potentially opportunistically profit from, the increasing economic uncertainty. Over the long-term, our strong portfolio of well-located apartment properties will continue to contribute to increased stockholder value.
Financial Results:
Net income attributable to common stockholders was $35.61 million, or $1.91 per diluted share, for the three months ended June 30, 2022, compared to net income of $6.03 million, or $0.34 per diluted share, for the three months ended June 30, 2021. The increase is due primarily to $40.1 million, or $2.26 per diluted share, of equity in earnings from sale of unconsolidated joint venture properties. The corresponding quarter in 2021 included an aggregate of $9.52 million, or $0.54 per diluted share, from gains on property sales and sales of partnership interests.
FFO was $3.77 million, or $0.20 per diluted share, for the three months ended June 30, 2022, compared to $5.06 million, or $0.29 per diluted share, for the three months ended June 30, 2021. The change was due primarily to increases in mortgage prepayment charges, state income taxes (due to the increase in state taxes from gains on property sales, which gains were not fully offset by net operating loss carryforwards in certain states), non-cash compensation expense and a decrease in insurance recoveries, offset by BRT’s share of reduced interest expense at its unconsolidated subsidiaries and improved operating margins at same store properties across our entire portfolio2.
AFFO for the three months ended June 30, 2022 increased to $6.95 million, or $0.37 per diluted share, from $5.49 million, or $0.31 per diluted share, in the three months ended June 30, 2021, primarily reflecting improved operating margins across our entire portfolio and BRT’s share of reduced interest expense at its unconsolidated subsidiaries, offset by the increase in state income tax.
1 A description and reconciliation of non-GAAP financial measures (e.g., FFO, AFFO and NOI) to GAAP financial measures is presented later in this release. See “Non-GAAP Financial Measures” for further information.
2 “Same store properties” refers to properties owned for the entirety of the period being presented. Unless the context otherwise requires, “entire portfolio” and “portfolio” refer to 100% of BRT’s wholly-owned subsidiaries and its pro rata share of its unconsolidated subsidiaries. “Pro rata” share reflects BRT’s percentage equity interest in the applicable unconsolidated subsidiary.
Diluted per share net income, FFO and AFFO were impacted during the quarter ended June 30, 2022 by the increase of 1.3 million weighted average shares of common stock outstanding from the second quarter of 2021 through the current quarter, primarily due to stock issuances pursuant to the Company’s at-the-market offering and equity incentive programs.
Operating Results:
Rental and other revenues for the current three months increased $7.72 million, or 111%, to $14.68 million from $6.96 million for the quarter ended June 30, 2021, primarily due to the purchase, since September 2021, of the remaining interests of joint venture partners in nine multi-family properties and the inclusion of such properties in BRT’s consolidated results of operations. BRT refers to such purchases as the consolidating transactions.
Total expenses for the three months ended June 30, 2022 increased 80.5% to $17.80 million from $9.87 million for the three months ended June 30, 2021, primarily due to the impact of the consolidating transactions.
Equity in earnings from the sale of unconsolidated joint venture properties for the current quarter was $40.1 million in the current quarter due to the sale of two properties. Equity in loss of unconsolidated joint ventures for the current quarter improved by $442,000 to a loss of $50,000 compared to a loss of $492,000 in the corresponding quarter of the prior year. The change is due primarily to the inclusion, in the corresponding 2021 quarter, of depreciation and real estate operating expenses from properties that were either subsequently sold or that due to the consolidating properties transactions, were, for the current quarter, included in the Company’s consolidated results, offset by the increase in mortgage prepayment charges related to the sales of two properties. Rental and other revenues from properties owned by unconsolidated joint ventures for the current three months decreased $10.90 million, or 33.0%, to $22.11 million from $33.01 million for the quarter ended June 30, 2021, primarily due to the impact of dispositions and the consolidating transactions, offset by increased rental income at unconsolidated same store properties. Total expenses at properties owned by unconsolidated joint ventures decreased $13.55 million, or 40.5%, to $19.94 million for the three months ended June 30, 2021, from $33.50 million from the corresponding 2021 quarter, primarily due to dispositions and the consolidating transactions.
BRT’s pro rata share of revenues from unconsolidated joint ventures for the three months ended June 30, 2022 and 2021 were $13.95 million and $21.01 million, respectively, and its pro rata share of such expenses for such periods were $12.60 million and $21.51 million, respectively. Included in total expenses for the three months ended June 30, 2022 and 2021 are $9.84 million and $15.23 million of real estate operating expenses, respectively, of which BRT’s pro rata share was $6.23 million and $9.76 million, respectively.
Net operating income, or NOI, at same store properties in our entire portfolio increased in the current quarter by 9.4% to $9.64 million, reflecting improved operating margins. NOI in our entire portfolio increased in the current quarter by 10.0% to $17.27 million, reflecting improved operating margins.
Transaction Activity During the Second Quarter:
BRT completed the purchase of the remaining interests in joint ventures that own five multi-family properties with an aggregate of 984 units for an aggregate purchase price of $34.16 million, after giving effect to its partners’ promote interests. Because these properties are wholly-owned by BRT at June 30, 2022, the mortgage debt of approximately $87 million, including a related refinancing, is included in BRT’s consolidated balance sheets as of such date. The weighted average interest rate and weighted average remaining term to maturity of such mortgage debt is approximately 4.35% and 7.15 years, respectively.
As previously reported, the unconsolidated joint ventures in which BRT held a 65% to 75% equity interests, completed the sale of two multi-family properties for an aggregate sales price of $159.55 million. BRT received net proceeds of approximately $51.98 million from these sales and during the quarter ended June 30, 2022, recognized an aggregate gain on sale of these properties of approximately $40.10 million, without giving effect to its $1.5 million share of the mortgage prepayment charge. As of March 31, 2022, these properties had mortgage debt of $61.8 million with a weighted average remaining term to maturity of 17.2 years and a weighted average interest rate of 3.97% and in 2021, contributed an aggregate of $259,000 of BRT’s equity in loss of unconsolidated joint ventures.
As previously reported, the unconsolidated joint venture in which BRT holds an 80% equity interest entered into an agreement to sell Waters Edge at Harbison, a 204-unit multifamily property located in Columbia, SC, for a sales price of approximately $32.4 million. BRT estimates that it will generate an internal rate of return, or IRR, of approximately 20% from
this property over the six years it was owned. This transaction is expected to close in late August or early September and BRT estimates that during the quarter ending September 30, 2022, it will recognize a gain on the sale of this property of approximately $11.5 million, excluding a mortgage prepayment charge of approximately $263,000. As of June 30, 2022, this property had mortgage debt of $12.3 million with a remaining term to maturity of 4.0 years and an interest rate of 4.28%. In 2021, this property contributed $66,000 to BRT's equity in loss of unconsolidated joint ventures. BRT anticipates using its share of the net proceeds from this sale to paydown its credit facility debt.
Subsequent Events
BRT completed the purchase from its joint venture partners of the remaining interests in the joint venture that owned five multi-family properties with an aggregate of 1,572 units for an aggregate purchase price, after giving effect to its partners’ promote interests, of $62.99 million. Because these properties are wholly-owned by BRT, mortgage debt of approximately $127.99 million currently on these properties will be included in BRT’s consolidated balance sheet as of September 30, 2022. At June 30, such mortgage debt had a weighted average interest rate and remaining term to maturity of 4.17% and 5.6 years, respectively.
Status of Partner Buyouts
Since March 2022, BRT has completed, for an aggregate purchase price of $105.87 million after giving effect to its partners’ promote interests, the previously announced partner buyouts at 11 properties with an aggregate of 2,844-units. In 2021, these 11 properties generated an aggregate of $38.5 million of rental income and $38.4 million of expense (including $11.5 million of depreciation and $10.3 million of mortgage interest expense. As a result of the completion of these purchases, all of these properties are wholly-owned by BRT. The table below reflects the impact of the 11 Partner Buyouts on the mortgage debt at BRT’s wholly-owned properties, substantially all of which was on these properties at the time of the buyout ($ in millions):
| | | | | | | | | | | | | | | | | | | | |
| | Mortgage Debt ($) | | Weighted Average Interest Rate (%) | | Weighted Average Remaining Years to Maturity |
BRT wholly-owned properties prior to the 11 Partner Buyouts | | $185.40 | | $3.74 | | $ | 10.40 | |
| 11 Partner Buyouts | | 242.52 | | 4.18 | | 6.35 |
| Total | | 427.92 | | 3.99 | | 8.09 |
Balance Sheet:
At June 30, 2022, BRT had $57.0 million of cash and cash equivalents, total assets, of $605.22 million, total debt of $334.09 million, and BRT total stockholders’ equity of $249.14 million. At June 30, 2022, BRT’s unconsolidated subsidiaries had cash and cash equivalents of $11.00 million, total assets of $539.5 million and total debt of $387.73 million. At June 30, 2022, BRT’s available liquidity was approximately $96.84 million, comprised of $57.05 million of cash and cash equivalents, $4.79 million of restricted cash, and, without giving effect up to an additional $25 million pursuant to an uncommitted accordion feature, $35 million available under its credit facility.
At August 5, 2022, BRT’s available liquidity was approximately $31.38 million, including $13.85 million of cash and cash equivalents, $4.53 million of restricted cash for property improvements and, without giving effect to the $25 million uncommitted accordion feature, up to $13.0 million available under its credit facility. In addition, the unconsolidated joint ventures have approximately $11.0 million of cash and cash equivalents which is used for day-to-day working capital purposes.
Conference Call and Webcast Information:
The Company will host a conference call and webcast to review its financial results with investors and other interested parties at 8:30 a.m. ET on Tuesday, August 9, 2022. Jeffrey A. Gould, Chief Executive Officer will host the call. To participate in the conference call, callers from the United States and Canada should dial 1-855-327-6838, and international callers should dial 1-604-235-2082, ten minutes prior to the scheduled call time. The webcast may also be accessed live by visiting the Company’s investor relations website under the “webcast” tab at https://brtapartments.com/investor-relations.
A replay of the conference call will be available after 11:30 a.m. ET on Tuesday, August 9, 2022 through 11:59 p.m. ET on Tuesday, August 23, 2022. To access the replay, listeners may use 1-844-512-2921 (domestic) or 1-412-317-6671 (international). The passcode for the replay is 10019825.
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 website at www.brtapartments.com under the caption “Investor Relations - Financial Statements and SEC Filings.”
Non-GAAP Financial Measures:
BRT discloses FFO, AFFO and NOI because it believes that such metrics are widely recognized and appropriate measure of the performance of an equity REIT.
BRT computes FFO in accordance with the “White Paper on Funds from Operations” issued by the National Association of Real Estate Investment Trusts (“NAREIT”) and NAREIT's related guidance. FFO is defined in the White Paper as net income (calculated in accordance with generally accepted accounting principles), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect funds from operations on the same basis.
BRT computes AFFO by adjusting FFO for loss on extinguishment of debt; straight-line rent accruals; restricted stock and restricted stock unit expense and deferred mortgage costs (including its share of its unconsolidated joint ventures); and gain on insurance recovery. Since the NAREIT White Paper only provides guidelines for computing FFO, 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 join 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 "Same Store NOI" as NOI for all its properties that were owned for the entirety of the periods being presented, other than properties in lease up. References to same store NOI with respect to BRT's portfolio refers to 100% of the accounts and results of operations of BRT's wholly owned subsidiaries and its pro rata share of the results of operations and accounts of its same store unconsolidated subsidiaries. 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 our operations and accounts as presented in accordance with GAAP.
BRT believes that FFO, AFFO and 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 and AFFO to be useful in evaluating potential property acquisitions. BRT views 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 current and comparable periods and therefore eliminates variations caused by acquisitions or dispositions during the periods.
FFO, AFFO and NOI do not represent net income or cash flows from operations as defined by GAAP. FFO, AFFO and NOI should not be considered to be an alternative to net income as a reliable measure of our operating performance; nor
should FFO, AFFO and 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:
Certain information contained herein is forward looking 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, including statements regarding the apparent improvement in the economic environment and BRT’s ability to originate additional loans. BRT intends such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes 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,” “will likely result,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “apparent,” “experiencing” or similar expressions or variations thereof. Investors are cautioned not to place undue reliance on any forward-looking statements and to carefully review the sections entitled “Risk Factors,” “Cautionary Statements Regarding Forward Looking Statements,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in BRT’s Annual Report on Form 10-K for the year ended December 31, 2021, and the other reports it files thereafter with the SEC. In addition, anticipated property purchases and sales (including information regarding the purchase and/or sale of the interests of BRT in its joint ventures) may not be completed during the periods indicated or at all, and estimates of gains from property sales are subject to adjustment, among other things, because actual closing costs may differ from the estimated costs. You should not rely on forward looking statements since they 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.
Additional Information:
BRT is a real estate investment trust that owns, operates and, to a lesser extent, develops multi-family properties. As of June 30, 2022, BRT owns or has interests in 31 multi-family properties with 8,645 units (including a 240– unit development project), located across 11 states. Sixteen properties are wholly-owned and the balance are owned through unconsolidated joint ventures in which BRT generally owns a substantial equity interest. Most of these properties are located in the Southeast United States or Texas. Interested parties are urged to review the Form 10-Q to be filed with the Securities and Exchange Commission for the quarter ended June 30, 2022, and the supplemental disclosures regarding the quarter on the investor relations section of the Company’s website at: http://brtapartments.com/investor_relations for further details. The Form 10-Q can also be linked through the “Investor Relations” section of BRT’s website. For additional information on BRT’s operations, activities and properties, please visit its website at www.brtapartments.com.
Contact: Investor Relations - (516) 466-3100
BRT APARTMENTS CORP.
60 Cutter Mill Road
Suite 303
Great Neck, New York 11021
Telephone (516) 466-3100
Telecopier (516) 466-3132
www.BRTapartments.com
BRT APARTMENTS CORP. AND SUBSIDIARIES
CONDENSED BALANCE SHEETS
(Dollars in thousands)
| | | | | | | | | | | |
| June 30, 2022 | | December 31, 2021 |
| (unaudited) | | (audited) |
| ASSETS | | | |
| Real estate properties, net of accumulated depreciation | $ | 447,886 | | | $ | 293,550 | |
| Investments in unconsolidated joint ventures | 79,782 | | | 112,347 | |
| Cash and cash equivalents | 57,045 | | | 32,339 | |
| Restricted cash | 4,787 | | | 6,582 | |
| Other assets | 15,721 | | | 10,341 | |
| Real estate property held for sale | — | | | 4,379 | |
| Total assets | $ | 605,221 | | | $ | 459,538 | |
| | | |
| LIABILITIES AND EQUITY | | | |
| Mortgages payable, net of deferred costs | $ | 296,974 | | | $ | 199,877 | |
| Junior subordinated notes, net of deferred costs | 37,113 | | | 37,103 | |
| | | |
| Accounts payable and accrued liabilities | 21,984 | | | 19,607 | |
| Total Liabilities | 356,071 | | | 256,587 | |
| | | |
| Total BRT Apartments Corp. stockholders’ equity | 249,143 | | | 202,956 | |
| Non-controlling interests | 7 | | | (5) | |
| Total Equity | 249,150 | | | 202,951 | |
| Total Liabilities and Equity | $ | 605,221 | | | $ | 459,538 | |
BRT APARTMENTS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share data)
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended
June 30, | | |
| | 2022 | | 2021 | | | | |
| Revenues: | | | | | | | | |
| Rental and other revenues from real estate properties | | $ | 14,683 | | | $ | 6,958 | | | | | |
| Other income | | 2 | | | 3 | | | | | |
| Total revenues | | 14,685 | | | 6,961 | | | | | |
| | | | | | | | |
| Expenses: | | | | | | | | |
| Real estate operating expenses | | 6,348 | | | 3,166 | | | | | |
| Interest expense | | 2,912 | | | 1,609 | | | | | |
| General and administrative | | 3,533 | | | 3,154 | | | | | |
| Impairment charge | | — | | | 520 | | | | | |
| Depreciation and amortization | | 5,010 | | | 1,416 | | | | | |
| Total expenses | | 17,803 | | | 9,865 | | | | | |
| Total revenue less total expenses | | (3,118) | | | (2,904) | | | | | |
| Equity in (loss) earnings of unconsolidated joint ventures | | (50) | | | (492) | | | | | |
| Equity in earnings from sale of unconsolidated joint ventures properties | | 40,098 | | | — | | | | | |
| Gain on sale of real estate | | — | | | 7,279 | | | | | |
| Gain on sale of partnership interest | | — | | | 2,244 | | | | | |
| Gain on insurance recovery | | — | | | — | | | | | |
| Loss on extinguishment of debt | | (563) | | | — | | | | | |
| Income from continuing operations | | 36,367 | | | 6,127 | | | | | |
| Income tax provision | | 724 | | | 67 | | | | | |
| Net income from continuing operations, net of taxes | | 35,643 | | | 6,060 | | | | | |
| Net income attributable to non-controlling interest | | (36) | | | (33) | | | | | |
| Net income attributable to common stockholders | | $ | 35,607 | | | $ | 6,027 | | | | | |
| | | | | | | | |
| Per share amounts attributable to common stockholders: | | | | | | | | |
| Basic | | $ | 1.91 | | | $ | 0.34 | | | | | |
| Diluted | | $ | 1.91 | | | $ | 0.34 | | | | | |
| | | | | | | | |
| Funds from operations - Note 1 | | $ | 3,774 | | | $ | 5,060 | | | | | |
| Funds from operations per common share - diluted - Note 2 | | $ | 0.20 | | | $ | 0.29 | | | | | |
| | | | | | | | |
| Adjusted funds from operations - Note 1 | | $ | 6,945 | | | $ | 5,489 | | | | | |
| Adjusted funds from operations per common share - diluted -Note 2 | | $ | 0.37 | | | $ | 0.31 | | | | | |
| | | | | | | | |
| Weighted average number of shares of common stock outstanding: | | | | | | | | |
| Basic | | 17,671,073 | | | 17,720,488 | | | | | |
| Diluted | | 17,726,343 | | | 17,720,488 | | | | | |
BRT APARTMENTS CORP. AND SUBSIDIARIES
FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS
(Unaudited)
(Dollars in thousands, except per share data)
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | |
| | 2022 | | 2021 | | | | |
| Note 1: | | | | | | | | |
| Funds from operations is summarized in the following table: | | | | | | | | |
| GAAP Net income attributable to common stockholders | | $ | 35,607 | | | $ | 6,027 | | | | | |
| Add: depreciation of properties | | 5,010 | | | 1,416 | | | | | |
| Add: our share of depreciation in unconsolidated joint venture properties | | 3,259 | | | 6,276 | | | | | |
| Add: Impairment charge | | — | | | 520 | | | | | |
| Add: our share of impairment charge in unconsolidated joint venture properties | | — | | | 348 | | | | | |
| Deduct: our share of equity in earnings from sale of unconsolidated joint venture properties | | (40,098) | | | — | | | | | |
| Deduct: gain on sale of real estate and partnership interests | | — | | | (9,523) | | | | | |
| Adjustments for non-controlling interests | | (4) | | | (4) | | | | | |
| NAREIT Funds from operations attributable to common stockholders | | 3,774 | | | 5,060 | | | | | |
| | | | | | | | |
| Adjustments for: straight-line rent accruals | | 6 | | | (10) | | | | | |
| Add: loss on extinguishment of debt | | 563 | | | — | | | | | |
| Add: our share of loss on extinguishment of debt from unconsolidated joint venture properties | | 1,473 | | | — | | | | | |
| Add: amortization of restricted stock and RSU expense | | 1,001 | | | 569 | | | | | |
| Add: amortization of deferred mortgage and debt costs | | 102 | | | 73 | | | | | |
| Add: our share of deferred mortgage costs from unconsolidated joint venture properties | | 73 | | | 143 | | | | | |
| Less: our share of insurance recovery from unconsolidated joint ventures | | — | | | (348) | | | | | |
| Less: our share of gain on insurance proceeds from unconsolidated joint venture properties | | (46) | | | — | | | | | |
| Adjustments for non-controlling interests | | (1) | | | 2 | | | | | |
| Adjusted funds from operations attributable to common stockholders | | $ | 6,945 | | | $ | 5,489 | | | | | |
| | | | | | | | |
BRT APARTMENTS CORP. AND SUBSIDIARIES
FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS
(Unaudited)
(Dollars in thousands, except per share data)
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | |
| | 2022 | | 2021 | | | | |
| Note 2: | | | | | | | | |
| Net income (loss) attributable to common stockholders | | $ | 1.91 | | | $ | 0.34 | | | | | |
| Add: depreciation of properties | | 0.26 | | | 0.09 | | | | | |
| Add: our share of depreciation in unconsolidated joint venture properties | | 0.17 | | | 0.35 | | | | | |
| Add: Impairment charge | | — | | | 0.03 | | | | | |
| Add: our share of impairment charge in unconsolidated joint venture properties | | — | | | 0.02 | | | | | |
| Deduct: our share of equity in earnings from sale of unconsolidated joint venture properties | | (2.14) | | | — | | | | | |
| Deduct: gain on sale of real estate and partnership interests | | — | | | (0.54) | | | | | |
| Adjustment for non-controlling interests | | — | | | — | | | | | |
| NAREIT Funds from operations per diluted common share | | 0.20 | | | 0.29 | | | | | |
| | | | | | | | |
| Adjustments for: straight line rent accruals | | — | | | — | | | | | |
| Add: loss on extinguishment of debt | | 0.03 | | | — | | | | | |
| Add: our share of loss on extinguishment of debt from unconsolidated joint venture properties | | 0.08 | | | — | | | | | |
| Add: amortization of restricted stock and RSU expense | | 0.05 | | | 0.03 | | | | | |
| Add: amortization of deferred mortgage and debt costs | | 0.01 | | | — | | | | | |
| Add: our share of deferred mortgage and debt costs from unconsolidated joint venture properties | | — | | | 0.01 | | | | | |
| Less: our share of insurance recovery from unconsolidated joint ventures | | — | | | (0.02) | | | | | |
| Less: our share of gain on insurance proceeds from unconsolidated joint venture | | — | | | — | | | | | |
| Adjustments for non-controlling interests | | — | | | — | | | | | |
| Adjusted funds from operations per diluted common share | | $ | 0.37 | | | $ | 0.31 | | | | | |
| | | | | | | | |
| Diluted shares outstanding for FFO and AFFO | | 18,661 | | | 17,320 | | | | | |
BRT APARTMENTS CORP. AND SUBSIDIARIES
RECONCILIATION OF NOI TO NET INCOME
(Unaudited)
The following tables provides a reconciliation of NOI to net income attributable to common stockholders as computed in accordance with GAAP for the periods presented:
| | | | | | | | | | | | | | | | | | |
| Consolidated | | Three Months Ended June 30, | | |
| | 2022 | | 2021 | | | | |
| GAAP Net income attributable to common stockholders | | $ | 35,607 | | | $ | 6,027 | | | | | |
| Less: Other Income | | (2) | | | (3) | | | | | |
| Add: Interest expense | | 2,912 | | | 1,609 | | | | | |
| General and administrative | | 3,533 | | | 3,154 | | | | | |
| Impairment charge | | — | | | 520 | | | | | |
| Depreciation | | 5,010 | | | 1,416 | | | | | |
| Provision for taxes | | 724 | | | 67 | | | | | |
| Less: Gain on sale of real estate | | — | | | (7,279) | | | | | |
| Gain on sale of partnership interest | | — | | | (2,244) | | | | | |
Equity in earnings from sale of unconsolidated joint
venture properties | | (40,098) | | | — | | | | | |
| Add: Loss on extinguishment of debt | | 563 | | | — | | | | | |
| Adjust for: Equity in (earnings) loss of unconsolidated joint venture properties | | 50 | | | 492 | | | | | |
| Add: Net income attributable to non-controlling interests | | 36 | | | 33 | | | | | |
| Net Operating Income | | $ | 8,335 | | | $ | 3,792 | | | | | |
| | | | | | | | |
| Less: Non-same store Net Operating Income (loss) | | $ | 4,452 | | | $ | 313 | | | | | |
| Same store Net Operating Income | | $ | 3,883 | | | $ | 3,479 | | | | | |
BRT APARTMENTS CORP. AND SUBSIDIARIES
RECONCILIATION OF NOI AT UNCONSOLIDATED SUBSIDIARIES
(Unaudited)
(Dollars in thousands, except per share data)
The following tables provides a reconciliation of NOI to equity in loss of unconsolidated joint ventures as computed in accordance with GAAP for the periods presented for BRT's pro rata share of NOI at its unconsolidated subsidiaries. Also presented is the combined same store NOI for Consolidated and Unconsolidated subsidiaries:
| | | | | | | | | | | | | | | | | | |
| Unconsolidated | | Three Months Ended June 30, | | |
| | 2022 | | 2021 | | | | |
| BRT's equity in earnings from sale of unconsolidated joint venture properties and equity in loss of joint ventures | | $ | 40,048 | | | $ | (492) | | | | | |
| Add: Interest expense | | 3,106 | | | 5,471 | | | | | |
| Depreciation | | 3,259 | | | 6,276 | | | | | |
| Loss on extinguishment of debt | | 1,469 | | | — | | | | | |
| Less: Impairment of asset | | — | | | 348 | | | | | |
| Insurance recovery | | — | | | (348) | | | | | |
| Gain on insurance recoveries | | (42) | | | — | | | | | |
| Gain on sale of real estate | | (40,098) | | | — | | | | | |
| Equity in earnings of joint ventures | | (22) | | | (5) | | | | | |
| | | | | | | | |
| Net Operating Income | | $ | 7,720 | | | $ | 11,250 | | | | | |
| | | | | | | | |
| Less: Non-same store Net Operating Income | | $ | (1,960) | | | $ | (5,915) | | | | | |
| Same store Net Operating Income | | $ | 5,760 | | | $ | 5,335 | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Consolidated same store Net Operating Income | | $ | 3,883 | | | $ | 3,479 | | | | | |
| Unconsolidated same store Net Operating Income | | 5,760 | | | 5,335 | | | | | |
| Combined same store Net Operating Income | | $ | 9,643 | | | $ | 8,814 | | | | | |
BRT APARTMENTS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share data)
The condensed income statements below present, for the periods indicated, a reconciliation of the information that appears in note 8 of BRT's Quarterly report on Form 10-Q to BRT's pro rata share of the operations of its unconsolidated subsidiaries:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, 2022 | | | |
| | Total | | Partner Share | | BRT's Pro-Rata Share | | | |
| Revenues: | | | | | | | | | |
| Rental and other revenue | | $ | 22,107 | | | $ | 8,156 | | | $ | 13,951 | | | | |
| Total revenues | | $ | 22,107 | | | $ | 8,156 | | | $ | 13,951 | | | | |
| | | | | | | | | |
| Expenses: | | | | | | | | | |
| Real estate operating expenses | | 9,842 | | | 3,611 | | | 6,231 | | | | |
| Interest expense | | 4,893 | | | 1,787 | | | 3,106 | | | | |
| Depreciation | | 5,208 | | | 1,949 | | | 3,259 | | | | |
| Total expenses | | 19,943 | | | 7,347 | | | 12,596 | | | | |
| Total revenues less total expenses | | 2,164 | | | 809 | | | 1,355 | | | | |
| Equity in earnings of joint ventures | | 22 | | | — | | | 22 | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Gain on insurance recoveries | | 52 | | | 10 | | | 42 | | | | |
| Gain on sale of real estate | | 77,681 | | | 37,583 | | | 40,098 | | | | |
| Loss on extinguishment of debt | | (2,888) | | | (1,419) | | | (1,469) | | | | |
| Net loss (income) | | $ | 77,031 | | | $ | 36,983 | | | $ | 40,048 | | (1) | | |
________________
(1) Reflects BRT's share as determined in accordance with GAAP - not its pro-rata share.
| | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, 2021 | |
| | Total | | Partner Share | | BRT's Pro-Rata Share | |
| Revenues: | | | | | | | |
| Rental and other revenue | | $ | 33,005 | | | $ | 11,993 | | | $ | 21,012 | | |
| Total revenues | | $ | 33,005 | | | $ | 11,993 | | | $ | 21,012 | | |
| | | | | | | |
| Expenses: | | | | | | | |
| Real estate operating expenses | | 15,233 | | | 5,471 | | | 9,762 | | |
| Interest expense | | 8,472 | | | 3,001 | | | 5,471 | | |
| Depreciation | | 9,791 | | | 3,515 | | | 6,276 | | |
| Total expenses | | 33,496 | | | 11,987 | | | 21,509 | | |
| Total revenues less total expenses | | (491) | | | 6 | | | (497) | | |
| Equity in earnings of joint ventures | | 5 | | | — | | | 5 | | |
| Impairment of assets | | (490) | | | (142) | | | (348) | | |
| Insurance recoveries | | 490 | | | 142 | | | 348 | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Net loss | | $ | (486) | | | $ | 6 | | | $ | (492) | | (1) |
________________
(1) Reflects BRT's share as determined in accordance with GAAP - not its pro-rata share.
Exhibit 99.2
| | |
SUPPLEMENTAL FINANCIAL
INFORMATION FOR THREE AND SIX MONTHS ENDED
JUNE 30, 2022 |
August 8, 2022
60 Cutter Mill Rd., Great Neck, NY 11021
FORWARD LOOKING STATEMENTS
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.
We undertake no obligation to update or revise the information herein, whether as a result of new information, future events or circumstances, or otherwise.
We use pro rata (as defined under "Non-GAAP Financial Measures and Definitions") to help the reader gain a better understanding of our unconsolidated joint ventures. However, the use of pro rata information has certain limitations and is not representative of our operations and accounts as presented in accordance with GAAP. Accordingly, pro rata information should be used with caution and in conjunction with the GAAP data presented herein and in our reports filed with the SEC.
| | | | | |
| Table of Contents | Page Number |
| Financial Highlights | 1 |
| 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 |
| Contracted Dispositions | 16 |
| Value-Add Information and Capital Expenditures | 17 |
| Debt Analysis | 18 |
| Non-GAAP Financial Measures, Definitions, and Reconciliations | 19-23 |
| Portfolio Table | 24 |
BRT Apartments Corp. (NYSE: BRT)
Financial Highlights
_________________________________________________________________________________________________________
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As at June 30, | | | | | | |
| | | 2022 | | 2021 | | | | | | | | |
| Market capitalization (thousands) | | $ | 401,949 | | | $ | 314,773 | | | | | | | | | |
| Shares outstanding (thousands) | | 18,704 | | | 18,153 | | | | | | | | | |
| Closing share price | | $ | 21.49 | | | $ | 17.34 | | | | | | | | | |
| Quarterly dividend declared per share | | $ | 0.25 | | | $ | 0.22 | | | | | | | | | |
| | | | | | | | | | | | | |
| | | Quarter ended June 30, |
| | | Combined | | Consolidated | | Unconsolidated |
| | | 2022 | | 2021 | | 2022 | | 2021 | | 2022 | | 2021 |
| Properties owned (a) | | 30 | | 37 | | 16 | | 7 | | 14 | | 30 |
| Units (a) | | 8,405 | | 10,562 | | 3,848 | | 1,608 | | 4,557 | | 8,954 |
| Average occupancy (a) | | 96.1 | % | | 95.2 | % | | 96.7 | % | | 97.5 | % | | 95.6 | % | | 94.7 | % |
| Average monthly rental revenue per occupied unit | | $ | 1,252 | | $ | 1,129 | | $ | 1,316 | | $ | 1,147 | | $ | 1,216 | | $ | 1,125 |
| ____________________________ | | | | | | | | | | | | | |
| (a) Excludes a planned 240-unit development project | | | | | | | | | | | | |
| | | Quarter ended June 30, | | | | | | |
| Per share data | | | 2022
(Unaudited) | | 2021
(Unaudited) | | | | | | | | |
| Earnings per share, basic | | $ | 1.91 | | | $ | 0.34 | | | | | | | | | |
| Earnings per share, diluted | | $ | 1.91 | | | $ | 0.34 | | | | | | | | | |
| FFO per share of common stock (diluted) (1) | | $ | 0.20 | | | $ | 0.29 | | | | | | | | | |
| AFFO per share of common stock (diluted) (1) | | $ | 0.37 | | | $ | 0.31 | | | | | | | | | |
| | | | | | | | | | | | | |
| | | As at June 30, | | | | | | | | |
| | | 2022 | | 2021 | | | | | | | | |
| Debt to Enterprise Value (2) | | | 63 | % | | 64 | % | | | | | | | | |
| | | | | | | | | | | | | |
(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."
BRT Apartments Corp. (NYSE: BRT)
Operating Results
(dollars in thousands except per share data)
_____________________________________________________________________________________________________________________
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, | | Six Months Ended June 30, |
| 2022 | | 2021 | | 2022 | | 2021 |
| Revenues: | | | | | | | |
| Rental revenue | $ | 14,683 | | | $ | 6,958 | | | $ | 26,113 | | | $ | 14,053 | |
| Other income | 2 | | | 3 | | | 6 | | | 7 | |
| Total revenues | 14,685 | | | 6,961 | | | 26,119 | | | 14,060 | |
| Expenses: | | | | | | | |
| Real estate operating expenses | 6,348 | | | 3,166 | | | 11,101 | | | 6,283 | |
| Interest expense | 2,912 | | | 1,609 | | | 4,933 | | | 3,269 | |
| General and administrative | 3,533 | | | 3,154 | | | 7,166 | | | 6,268 | |
| Impairment charge | — | | | 520 | | | — | | | 520 | |
| Depreciation and amortization | 5,010 | | | 1,416 | | | 8,616 | | | 2,953 | |
| Total expenses | 17,803 | | | 9,865 | | | 31,816 | | | 19,293 | |
| Total revenues less total expenses | (3,118) | | | (2,904) | | | (5,697) | | | (5,233) | |
| Equity in earnings (loss) of unconsolidated joint ventures | (50) | | | (492) | | | 1,180 | | | (1,837) | |
| Equity in earnings from sale of unconsolidated joint venture properties | 40,098 | | | — | | | 53,059 | | | — | |
| Gain on sale of real estate | — | | | 7,279 | | | 6 | | | 7,279 | |
| Gain on sale of partnership interest | — | | | 2,244 | | | — | | | 2,244 | |
| | | | | | | |
| Loss on extinguishment of debt | (563) | | | — | | | (563) | | | — | |
| Net income from continuing operations | 36,367 | | | 6,127 | | | 47,985 | | | 2,453 | |
| Income tax provision | 724 | | | 67 | | | 798 | | | 124 | |
| Net income from continuing operations, net of taxes | 35,643 | | | 6,060 | | | 47,187 | | | 2,329 | |
| Net income attributable to non-controlling interests | (36) | | | (33) | | | (72) | | | (67) | |
| Net income attributable to common stockholders | $ | 35,607 | | | $ | 6,027 | | | $ | 47,115 | | | $ | 2,262 | |
| | | | | | | |
| Weighted average number of shares of common stock outstanding: | | | | | | | |
| Basic | 17,671,073 | | | 17,720,488 | | | 17,616,740 | | | 17,520,963 | |
| Diluted | 17,726,343 | | | 17,720,488 | | | 17,690,601 | | | 17,520,963 | |
| | | | | | | |
| Per share amounts attributable to common stockholders: | | | | | | | |
| Basic and diluted | $ | 1.91 | | | $ | 0.34 | | | $ | 2.54 | | | $ | 0.13 | |
| Diluted | $ | 1.91 | | | $ | 0.34 | | | $ | 2.53 | | | $ | 0.13 | |
BRT Apartments Corp. (NYSE: BRT)
Operating Results of Unconsolidated Properties
(dollars in thousands, except per share data)
_____________________________________________________________________________________________________________________
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | Six Months Ended June 30, |
| | 2022 | | 2021 | | 2022 | | 2021 |
| Revenues: | | | | | | | | |
| Rental and other revenue | | $ | 22,107 | | | $ | 33,005 | | | $ | 47,338 | | | $ | 65,677 | |
| Total revenues | | 22,107 | | | 33,005 | | | 47,338 | | | 65,677 | |
| | | | | | | | |
| Expenses: | | | | | | | | |
| Real estate operating expenses | | 9,842 | | | 15,233 | | | 21,011 | | | 30,936 | |
| Interest expense | | 4,893 | | | 8,472 | | | 10,919 | | | 16,994 | |
| Depreciation | | 5,208 | | | 9,791 | | | 11,844 | | | 20,176 | |
| Total expenses | | 19,943 | | | 33,496 | | | 43,774 | | | 68,106 | |
| Total revenues less total expenses | | 2,164 | | | (491) | | | 3,564 | | | (2,429) | |
| Other equity earnings | | 22 | | | 5 | | | 77 | | | 14 | |
| Impairment of assets | | — | | | (490) | | | — | | | (2,813) | |
| Insurance recoveries | | — | | | 490 | | | — | | | 2,813 | |
| Gain on insurance recoveries | | 52 | | | — | | | 567 | | | — | |
| Gain on sale of real estate | | 77,681 | | | — | | | 101,333 | | | — | |
| Loss on extinguishment of debt | | (2,888) | | | — | | | (2,918) | | | — | |
| Net income (loss) income from joint ventures | | $ | 77,031 | | | $ | (486) | | | $ | 102,623 | | | $ | (2,415) | |
| | | | | | | | |
| BRT equity in earnings (loss) and equity in earnings from sale of unconsolidated joint venture properties | | $ | 40,048 | | | $ | (492) | | | $ | 54,239 | | | $ | (1,837) | |
BRT Apartments Corp. (NYSE: BRT)
Funds from Operations
(dollars in thousands)
____________________________________________________________________________________________________________________
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | Six Months Ended June 30, |
| | 2022 | | 2021 | | 2022 | | 2021 |
| GAAP Net income attributable to common stockholders | | $ | 35,607 | | | $ | 6,027 | | | $ | 47,115 | | | $ | 2,262 | |
| Add: depreciation of properties | | 5,010 | | | 1,416 | | | 8,616 | | | 2,953 | |
| Add: our share of depreciation in unconsolidated joint venture properties | | 3,259 | | | 6,276 | | | 7,577 | | | 12,875 | |
| Add: impairment charge | | — | | | 520 | | | — | | | 520 | |
| Add: our share of impairment charge in unconsolidated joint venture properties | | — | | | 348 | | | — | | | 2,010 | |
| Deduct: our share of equity in earnings from sale of unconsolidated joint venture properties | | (40,098) | | | — | | | (53,059) | | | — | |
| Deduct: gain on sale of real estate and partnership interests | | — | | | (9,523) | | | (6) | | | (9,523) | |
| Adjust for non-controlling interests | | (4) | | | (4) | | | (8) | | | (8) | |
| NAREIT Funds from operations attributable to common stockholders | | $ | 3,774 | | | $ | 5,060 | | | $ | 10,235 | | | $ | 11,089 | |
| | | | | | | | |
| Adjustments for: straight-line rent accruals | | 6 | | | (10) | | | 12 | | | (20) | |
| Add: loss on extinguishment of debt | | 563 | | | — | | | 563 | | | — | |
| Add: our share of loss on extinguishment of debt from unconsolidated joint venture properties | | 1,473 | | | — | | | 1,492 | | | — | |
| Add: amortization of restricted stock and RSU expense | | 1,001 | | | 569 | | | 1,975 | | | 1,107 | |
| Add: amortization of deferred mortgage and debt costs | | 102 | | | 73 | | | 179 | | | 153 | |
| Add: our share of deferred mortgage costs from unconsolidated joint venture properties | | 73 | | | 143 | | | 166 | | | 291 | |
| Less: our share of insurance recovery from unconsolidated joint ventures | | — | | | (348) | | | — | | | (2,010) | |
| Less: our share of gain on insurance proceeds from unconsolidated joint venture | | (46) | | | — | | | (432) | | | — | |
| Adjustments for non-controlling interests | | (1) | | | 2 | | | (2) | | | 4 | |
| Adjusted funds from operations attributable to common stockholders | | $ | 6,945 | | | $ | 5,489 | | | $ | 14,188 | | | $ | 10,614 | |
Funds from Operations
(dollars in thousands, except per share data)
____________________________________________________________________________________________________________________
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | Six Months Ended June 30, |
| | 2022 | | 2021 | | 2022 | | 2021 |
| GAAP Net income (loss) attributable to common stockholders | | $ | 1.91 | | | $ | 0.34 | | | $ | 2.53 | | | $ | 0.13 | |
| Add: depreciation of properties | | 0.26 | | | 0.09 | | | 0.46 | | | 0.17 | |
| Add: our share of depreciation in unconsolidated joint venture properties | | 0.17 | | | 0.35 | | | 0.41 | | | 0.73 | |
| Add: Impairment charge | | — | | | 0.03 | | | — | | | 0.03 | |
| Add: our share of impairment charge in unconsolidated joint venture properties | | — | | | 0.02 | | | — | | | 0.11 | |
| Deduct: our share of equity in earnings from sale of unconsolidated joint venture properties | | (2.14) | | | — | | | (2.85) | | | — | |
| Deduct: gain on sales of real estate and partnership interests | | — | | | (0.54) | | | — | | | (0.54) | |
| Adjustment for non-controlling interests | | — | | | — | | | — | | | — | |
| NAREIT Funds from operations per diluted common share | | 0.20 | | | 0.29 | | | 0.55 | | | 0.63 | |
| | | | | | | | |
| Adjust for straight line rent accruals | | — | | | — | | | — | | | — | |
| Add: loss on extinguishment of debt | | 0.03 | | | — | | | 0.03 | | | — | |
| Add: our share of loss on extinguishment of debt from unconsolidated joint venture properties | | 0.08 | | | — | | | 0.08 | | | — | |
| Add: amortization of restricted stock and RSU expense | | 0.05 | | | 0.03 | | | 0.10 | | | 0.06 | |
| Add: amortization of deferred mortgage and debt costs | | 0.01 | | | — | | | 0.01 | | | 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 | | — | | | (0.02) | | | — | | | (0.11) | |
| Less: our share of gain on insurance proceeds from unconsolidated joint venture properties | | — | | | — | | | (0.02) | | | — | |
| Adjustments for non-controlling interests | | — | | | — | | | — | | | — | |
| Adjusted funds from operations per diluted common share | | $ | 0.37 | | | $ | 0.31 | | | $ | 0.76 | | | $ | 0.61 | |
| | | | | | | | |
| Diluted shares outstanding for FFO and AFFO | | 18,661 | | | 17,320 | | | 18,616 | | | 17,521 | |
BRT Apartments Corp. (NYSE: BRT)
Consolidated Balance Sheets
(amounts in thousands, except per share amounts)
_____________________________________________________________________________________________________________________
| | | | | | | | | | | | | | |
| | June 30, 2022 | | December 31, 2021 |
| | (unaudited) | | (audited) |
| ASSETS | | | | |
| Real estate properties, net of accumulated depreciation | | $ | 447,886 | | | $ | 293,550 | |
| Investment in unconsolidated joint ventures | | 79,782 | | | 112,347 | |
| Cash and cash equivalents | | 57,045 | | | 32,339 | |
| Restricted cash | | 4,787 | | | 6,582 | |
| Other assets | | 15,721 | | | 10,341 | |
| Real estate property held for sale | | — | | | 4,379 | |
| Total Assets | | $ | 605,221 | | | $ | 459,538 | |
| | | | |
| LIABILITIES AND EQUITY | | | | |
| Liabilities: | | | | |
| Mortgages payable, net of deferred costs | | $ | 296,974 | | | $ | 199,877 | |
| Junior subordinated notes, net of deferred costs | | 37,113 | | | 37,103 | |
| | | | |
| Accounts payable and accrued liabilities | | 21,984 | | | 19,607 | |
| Total Liabilities | | 356,071 | | | 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;
17,770 and 17,349 shares outstanding | | 178 | | | 173 | |
| Additional paid-in capital | | 266,256 | | | 258,161 | |
| | | | |
| Accumulated deficit | | (17,291) | | | (55,378) | |
| Total BRT Apartments Corp. stockholders’ equity | | 249,143 | | | 202,956 | |
| Non-controlling interests | | 7 | | | (5) | |
| Total Equity | | 249,150 | | | 202,951 | |
| Total Liabilities and Equity | | $ | 605,221 | | | $ | 459,538 | |
BRT Apartments Corp. (NYSE: BRT)
Balance Sheet of Unconsolidated Joint Venture Entities
(amounts in thousands, except per share amounts)
_____________________________________________________________________________________________________________________
At June 30, 2022, the Company held interests in unconsolidated joint ventures that own 14 multi-family properties (the "Unconsolidated Properties") including an interest in a development project. The condensed balance sheet below present information regarding such properties:
| | | | | | | | |
| | June 30, 2022 |
| ASSETS | | |
| Real estate properties, net of accumulated depreciation | | $ | 483,332 | |
| Cash and cash equivalents | | 11,002 | |
| Other assets | | 30,147 | |
| Real estate asset held-for-sale | | 14,989 | |
| Total Assets | | $ | 539,470 | |
| | |
| LIABILITIES AND EQUITY | | |
| Liabilities: | | |
| Mortgages payable, net of deferred costs | | $ | 387,725 | |
| Accounts payable and accrued liabilities | | 12,484 | |
| Total Liabilities | | 400,209 | |
| Commitments and contingencies | | |
| Equity: | | |
| Total unconsolidated joint venture equity | | 139,261 | |
| Total Liabilities and Equity | | $ | 539,470 | |
| | |
| | |
| | |
| BRT interest in joint venture equity | | $ | 79,782 | |
| | |
| Reconciliation: | | |
| Unconsolidated Mortgages Payable: | | |
BRT's pro-rata share | | $ | 236,810 | |
Partner's pro-rata share | | 150,915 | |
| Total | | $ | 387,725 | |
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Quarter ended June 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 | | $ | 2,112 | | | $ | 1,019 | | | $ | 1,093 | | | 13.1 | % | | 95.0 | % | | $ | 1,198 | |
| Georgia | | 688 | | 1,814 | | | 779 | | | 1,035 | | | 12.4 | % | | 97.6 | % | | 1,232 |
| Florida | | 518 | | 1,755 | | | 747 | | | 1,008 | | | 12.1 | % | | 96.2 | % | | 1,320 |
| Ohio | | 264 | | 870 | | | 370 | | | 500 | | | 6.0 | % | | 96.7 | % | | 1,012 |
| Virginia | | 220 | | 1,204 | | | 430 | | | 774 | | | 9.3 | % | | 98.0 | % | | 1,648 |
| South Carolina | | 474 | | 2,011 | | | 998 | | | 1,013 | | | 12.2 | % | | 97.5 | % | | 1,273 |
| Tennessee | | 702 | | 3,450 | | | 1,443 | | | 2,007 | | | 24.1 | % | | 97.1 | % | | 1,547 |
| Alabama | | 208 | | 267 | | | 110 | | | 157 | | | 1.9 | % | | 94.8 | % | | 934 |
| Missouri | | 174 | | 824 | | | 333 | | | 491 | | | 5.9 | % | | 96.2 | % | | 1,547 |
| Legacy assets | | — | | 376 | | | 119 | | | 257 | | | 3.0 | % | | N/A | | N/A |
| Totals | | 3,848 | | $ | 14,683 | | | $ | 6,348 | | | $ | 8,335 | | | 100 | % | | 96.7 | % | | $ | 1,329 | |
|
| | | | | | | | | | | | | | |
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 | | $ | 3,333 | | | $ | 1,642 | | | $ | 1,691 | | | 21.9 | % | | 95.3 | % | | $ | 1,297 | |
| South Carolina | | 917 | | 1,761 | | | 870 | | | 891 | | | 11.5 | % | | 96.2 | % | | 1,297 |
| Georgia | | 271 | | 869 | | | 374 | | | 495 | | | 6.4 | % | | 94.7 | % | | 1,126 |
| Alabama | | 732 | | 2,076 | | | 927 | | | 1,149 | | | 14.9 | % | | 96.1 | % | | 1,048 |
| Mississippi | | 776 | | 2,043 | | | 705 | | | 1,338 | | | 17.3 | % | | 96.6 | % | | 1,134 |
| North Carolina | | 264 | | 753 | | | 294 | | | 459 | | | 5.9 | % | | 95.8 | % | | 1,223 |
| Joint venture buyouts (2) | | — | | 1,396 | | | 714 | | | 682 | | | 8.8 | % | | N/A | | N/A |
| Sold properties | | — | | 1,720 | | | 705 | | | 1,015 | | | 13.3 | % | | N/A | | N/A |
| Totals | | 4,557 | | $ | 13,951 | | | $ | 6,231 | | | $ | 7,720 | | | 100 | % | | 95.7 | % | | $ | 1,220 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
_________________________________________________________________________________
(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.
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Six months ended June 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 | | $ | 2,967 | | | $ | 1,434 | | | $ | 1,533 | | | 10.2% | | 95.7% | | $1,139 |
| Georgia | | 688 | | 3,579 | | | 1,592 | | | 1,987 | | | 13.2% | | 97.8% | | 1,210 |
| Florida | | 518 | | 2,955 | | | 1,217 | | | 1,738 | | | 11.6% | | 95.9% | | 1,338 |
| Ohio | | 264 | | 1,739 | | | 708 | | | 1,031 | | | 6.9% | | 97.0% | | 1,010 |
| Virginia | | 220 | | 2,277 | | | 782 | | | 1,495 | | | 10.0% | | 98.5% | | 1,566 |
| South Carolina | | 474 | | 3,999 | | | 1,938 | | | 2,061 | | | 13.7% | | 97.6% | | 1,261 |
| Tennessee | | 702 | | 6,758 | | | 2,762 | | | 3,996 | | | 26.6% | | 97.5% | | 1,515 |
| Alabama | | 208 | | 267 | | | 110 | | | 157 | | | 1.0% | | 94.8% | | 934 |
| Missouri | | 174 | | 824 | | | 333 | | | 491 | | | 3.3% | | 96.2% | | 1,547 |
| Legacy assets | | — | | 748 | | | 225 | | | 523 | | | 3.5% | | N/A | | N/A |
| Totals | | 3,848 | | $ | 26,113 | | | $ | 11,101 | | | $ | 15,012 | | | 100.0% | | 97.1% | | $1,311 |
|
| | | | | | | | | | | | | | |
| 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 | | $6,595 | | $ | 3,206 | | | $ | 3,389 | | | 20.2% | | 92.8% | | $1,251 |
| South Carolina | | 917 | | 3,480 | | 1,606 | | | 1,874 | | | 11.2% | | 96.2% | | 1,285 |
| Georgia | | 271 | | 1,710 | | 735 | | | 975 | | | 5.8% | | 94.6% | | 1,114 |
| Alabama | | 732 | | 4,107 | | 1,837 | | | 2,270 | | | 13.5% | | 96.1% | | 1,045 |
| Mississippi | | 776 | | 4,073 | | 1,404 | | | 2,669 | | | 15.9% | | 97.0% | | 1,120 |
| North Carolina | | 264 | | 1,480 | | 584 | | | 896 | | | 5.3% | | 95.9% | | 1,207 |
| Joint venture buyouts (2) | | — | | 4,923 | | 2,393 | | | 2,530 | | | 15.1% | | N/A | | N/A |
| Sold properties | | — | | 3,918 | | 1,731 | | | 2,187 | | | 13.0% | | N/A | | N/A |
| Totals | | 4,557 | | $30,286 | | $ | 13,496 | | | $ | 16,790 | | | 100% | | 94.8% | | $1,196 |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
_________________________________________________________________________________
(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.
BRT Apartments Corp. (NYSE: BRT)
Consolidated Same Store Comparisons (1)
Quarter ended June 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 | | $ | 1,814 | | | $ | 1,679 | | | 8.0 | % | | $ | 779 | | | $ | 764 | | | 2.0 | % | | $ | 1,035 | | | $ | 915 | | | 13.1 | % |
| Florida | | 276 | | 1,232 | | | 1,112 | | | 10.8 | % | | 527 | | | 451 | | | 16.9 | % | | 705 | | | 661 | | | 6.7 | % |
| Texas | | 192 | | 765 | | | 672 | | | 13.8 | % | | 366 | | | 347 | | | 5.5 | % | | 399 | | | 325 | | | 22.8 | % |
| Ohio | | 264 | | 870 | | | 803 | | | 8.3 | % | | 370 | | | 345 | | | 7.2 | % | | 500 | | | 458 | | | 9.2 | % |
| Virginia | | 220 | | 1,204 | | | 1,053 | | | 14.3 | % | | 430 | | | 346 | | | 24.3 | % | | 774 | | | 707 | | | 9.5 | % |
| South Carolina | | 208 | | 956 | | | 839 | | | 13.9 | % | | 486 | | | 426 | | | 14.1 | % | | 470 | | | 413 | | | 13.8 | % |
| Totals | | 1,608 | | $ | 6,841 | | | $ | 6,158 | | | 11.1 | % | | $ | 2,958 | | | $ | 2,679 | | | 10.4 | % | | $ | 3,883 | | | $ | 3,479 | | | 11.6 | % |
| | | | | | | | | | | | | | | | | 0 | | | |
| | | | Weighted Average Occupancy | | Weighted Average Monthly Rent per Occupied Unit | | | | | | |
| | | | 2022 | | 2021 | | % Change | | 2022 | | 2021 | | % Change | | | | | | |
| Georgia | | | | 97.6 | % | | 98.1 | % | | (0.5) | % | | $ | 1,232 | | | $ | 1,115 | | | 10.5 | % | | | | | | |
| Florida | | | | 97.2 | % | | 98.2 | % | | (1.0) | % | | 1,355 | | 1,219 | | 11.2 | % | | | | | | |
| Texas | | | | 97.8 | % | | 96.4 | % | | 1.5 | % | | 1,160 | | 1,020 | | 13.7 | % | | | | | | |
| Ohio | | | | 96.7 | % | | 98.5 | % | | (1.8) | % | | 1,012 | | 931 | | 8.7 | % | | | | | | |
| Virginia | | | | 98.0 | % | | 99.2 | % | | (1.2) | % | | 1,648 | | 1,440 | | 14.4 | % | | | | | | |
| South Carolina | | | | 97.4 | % | | 97.1 | % | | 0.3 | % | | 1,353 | | 1,194 | | 13.3 | % | | | | | | |
| Weighted Average | | | | 97.5 | % | | 98.0 | % | | (0.5) | % | | $ | 1,282 | | | $ | 1,147 | | | 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."
BRT Apartments Corp. (NYSE: BRT)
Consolidated Same Store Comparisons (1)
Six months ended June 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 | | $ | 3,579 | | | $ | 3,299 | | | 8.5 | % | | $ | 1,592 | | | $ | 1,489 | | | 6.9 | % | | $ | 1,987 | | | $ | 1,810 | | | 9.8 | % |
| Florida | | 276 | | 2,432 | | | 2,189 | | | 11.1 | % | | 997 | | | 853 | | | 16.9 | % | | 1,435 | | | 1,336 | | | 7.4 | % |
| Texas | | 192 | | 1,498 | | | 1,326 | | | 13.0 | % | | 713 | | | 686 | | | 3.9 | % | | 785 | | | 640 | | | 22.7 | % |
| Ohio | | 264 | | 1,739 | | | 1,582 | | | 9.9 | % | | 708 | | | 666 | | | 6.3 | % | | 1,031 | | | 916 | | | 12.6 | % |
| Virginia | | 220 | | 2,277 | | | 2,090 | | | 8.9 | % | | 782 | | | 689 | | | 13.5 | % | | 1,495 | | | 1,401 | | | 6.7 | % |
| South Carolina | | 208 | | 1,911 | | | 1,653 | | | 15.6 | % | | 925 | | | 831 | | | 11.3 | % | | 986 | | | 822 | | | 20.0 | % |
| Totals | | 1,608 | | $ | 13,436 | | | $ | 12,139 | | | 10.7 | % | | $ | 5,717 | | | $ | 5,214 | | | 9.6 | % | | $ | 7,719 | | | $ | 6,925 | | | 11.5 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | Weighted Average Occupancy | | Weighted Average Monthly Rent per Occupied Unit | | | | | | |
| | | | 2022 | | 2021 | | % Change | | 2022 | | 2021 | | % Change | | | | | | |
| Georgia | | | | 97.8 | % | | 97.4 | % | | 0.4 | % | | $ | 1,210 | | | $ | 1,109 | | | 9.1 | % | | | | | | |
| Florida | | | | 96.4 | % | | 98.1 | % | | (1.7) | % | | 1,360 | | | 1,205 | | | 12.9 | % | | | | | | |
| Texas | | | | 97.8 | % | | 96.1 | % | | 1.8 | % | | 1,144 | | | 1,020 | | | 12.2 | % | | | | | | |
| Ohio | | | | 97.0 | % | | 98.3 | % | | (1.3) | % | | 1,010 | | | 926 | | | 9.1 | % | | | | | | |
| Virginia | | | | 98.5 | % | | 98.9 | % | | (0.4) | % | | 1,566 | | | 1,428 | | | 9.7 | % | | | | | | |
| South Carolina | | | | 97.1 | % | | 95.6 | % | | 1.6 | % | | 1,344 | | | 1,189 | | | 13.0 | % | | | | | | |
| Weighted Average | | | | 97.4 | % | | 97.5 | % | | (0.1) | % | | $ | 1,261 | | | $ | 1,139 | | | 10.7 | % | | | | | | |
_______________________________
(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."
BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons (1)
Quarter ended June 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 | | 2021 | | 2020 | | % Change | | 2022 | | 2021 | | % Change |
| Georgia | | 271 | | 869 | | | 814 | | | 6.8 | % | | 374 | | | 306 | | | 22.2 | % | | 495 | | | 508 | | | (2.6) | % |
| South Carolina | | 917 | | 1,761 | | | 1,557 | | | 13.1 | % | | 870 | | | 665 | | | 30.8 | % | | 891 | | | 892 | | | (0.1) | % |
| Texas | | 1,597 | | $ | 3,332 | | | $ | 3,002 | | | 11.0 | % | | $ | 1,642 | | | $ | 1,483 | | | 10.7 | % | | $ | 1,690 | | | $ | 1,519 | | | 11.3 | % |
| Mississippi | | 776 | | 1,642 | | | 1,538 | | | 6.8 | % | | 566 | | | 570 | | | (0.7) | % | | 1,076 | | | 968 | | | 11.2 | % |
| Alabama | | 732 | | 2,076 | | | 1,975 | | | 5.1 | % | | 927 | | | 878 | | | 5.6 | % | | 1,149 | | | 1,097 | | | 4.7 | % |
| North Carolina | | 264 | | 753 | | | 666 | | | 13.1 | % | | 294 | | | 315 | | | (6.7) | % | | 459 | | | 351 | | | 30.8 | % |
| Totals | | 4,557 | | $ | 10,433 | | | $ | 9,552 | | | 9.2 | % | | $ | 4,673 | | | $ | 4,217 | | | 10.8 | % | | $ | 5,760 | | | $ | 5,335 | | | 8.0 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | Weighted Average Occupancy | | Weighted Average Monthly Rent per Occupied Unit | | | | | | |
| | | | 2022 | | 2021 | | % Change | | 2022 | | 2021 | | % Change | | | | | | |
| Texas | | | | 95.3 | % | | 95.5 | % | | (0.2) | % | | $ | 1,297 | | | $ | 1,159 | | | 11.9 | % | | | | | | |
| Georgia | | | | 94.1 | % | | 96.9 | % | | (2.9) | % | | 1,377 | | | 1,261 | | | 9.2 | % | | | | | | |
| South Carolina | | | | 96.2 | % | | 91.2 | % | | 5.5 | % | | 1,297 | | | 1,196 | | | 8.4 | % | | | | | | |
| Mississippi | | | | 96.6 | % | | 98.3 | % | | (1.7) | % | | 1,134 | | | 1,040 | | | 9.0 | % | | | | | | |
| Alabama | | | | 96.0 | % | | 96.7 | % | | (0.7) | % | | 1,087 | | | 1,006 | | | 8.1 | % | | | | | | |
| North Carolina | | | | 95.8 | % | | 95.9 | % | | (0.1) | % | | 1,223 | | | 1,072 | | | 14.1 | % | | | | | | |
| Weighted Average | | | | 95.8 | % | | 95.4 | % | | 0.4 | % | | $ | 1,235 | | | $ | 1,118 | | | 10.5 | % | | | | | | |
________________________________
(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."
BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons (1)
Six months ended June 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 | | $ | 6,594 | | | $ | 5,791 | | | 13.9 | % | | $ | 3,206 | | | $ | 3,009 | | | 6.5 | % | | $ | 3,388 | | | $ | 2,782 | | | 21.8 | % |
| Georgia | | 271 | | 1,710 | | | $ | 1,615 | | | 5.9 | % | | 735 | | | $ | 684 | | | 7.5 | % | | 975 | | | 931 | | | 4.7 | % |
| South Carolina | | 917 | | 3,479 | | | 3,093 | | | 12.5 | % | | 1,605 | | | 1,425 | | | 12.6 | % | | 1,874 | | | 1,668 | | | 12.4 | % |
| Mississippi | | 776 | | 3,270 | | | 3,049 | | | 7.2 | % | | 1,127 | | | 1,142 | | | (1.3) | % | | 2,143 | | | 1,907 | | | 12.4 | % |
| Alabama | | 732 | | 4,107 | | | 3,901 | | | 5.3 | % | | 1,837 | | | 1,722 | | | 6.7 | % | | 2,270 | | | 2,179 | | | 4.2 | % |
| North Carolina | | 264 | | 1,480 | | | 1,278 | | | 15.8 | % | | 584 | | | 628 | | | (7.0) | % | | 896 | | | 650 | | | 37.8 | % |
| Totals | | 4,557 | | $ | 20,640 | | | $ | 18,727 | | | 10.2 | % | | $ | 9,094 | | | $ | 8,610 | | | 5.6 | % | | $ | 11,546 | | | $ | 10,117 | | | 14.1 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | Weighted Average Occupancy | | Weighted Average Monthly Rent per Occupied Unit | | | | | | |
| | | | 2022 | | 2021 | | % Change | | 2022 | | 2021 | | % Change | | | | | | |
| Texas | | | | 95.8 | % | | 93.4 | % | | 2.6 | % | | $ | 1,274 | | | $ | 1,135 | | | 12.2 | % | | | | | | |
| Georgia | | | | 94.1 | % | | 96.1 | % | | (2.1) | % | | 1,363 | | | 1,252 | | | 8.9 | % | | | | | | |
| South Carolina | | | | 96.2 | % | | 92.0 | % | | 4.6 | % | | 1,202 | | | 1,131 | | | 6.3 | % | | | | | | |
| Mississippi | | | | 97.0 | % | | 98.2 | % | | (1.2) | % | | 1,120 | | | 1,031 | | | 8.6 | % | | | | | | |
| Alabama | | | | 96.0 | % | | 97.3 | % | | (1.3) | % | | 1,073 | | | 1,010 | | | 6.2 | % | | | | | | |
| North Carolina | | | | 94.7 | % | | 95.6 | % | | (0.9) | % | | 1,330 | | | 1,168 | | | 13.9 | % | | | | | | |
| Weighted Average | | | | 95.9 | % | | 95.1 | % | | 0.8 | % | | $ | 1,211 | | | $ | 1,103 | | | 9.8 | % | | | | | | |
________________________________
(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."
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data Combined
(dollars in thousands, except monthly rent amounts)
________________________________________________________________________________________
Quarter Ended June 30, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Portfolio | 2022 | | 2021 | | Variance |
| Revenues | | Property Operating Expenses | | NOI | | Revenues | | Property Operating Expenses | | NOI | | Revenues | | Property Operating Expenses | | NOI |
| Consolidated | $ | 14,683 | | | $ | 6,348 | | | $ | 8,335 | | | $ | 6,958 | | | $ | 3,166 | | | $ | 3,792 | | | 111.0 | % | | 100.5 | % | | 119.8 | % |
| Unconsolidated (1) (2) | 13,951 | | 6,231 | | 7,720 | | 21,012 | | 9,762 | | 11,250 | | (33.6) | % | | (36.2) | % | | (31.4) | % |
| Combined | $ | 28,634 | | | $ | 12,579 | | | $ | 16,055 | | | $ | 27,970 | | | $ | 12,928 | | | $ | 15,042 | | | 2.4 | % | | (2.7) | % | | 6.7 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Same Store | | | | | | | | | | | | | | | | | |
| 2022 | | 2021 | | Variance |
| Revenues | | Property Operating Expenses | | NOI | | Revenues | | Property Operating Expenses | | NOI | | Revenues | | Property Operating Expenses | | NOI |
| Consolidated | $ | 6,841 | | | $ | 2,958 | | | $ | 3,883 | | | $ | 6,158 | | | $ | 2,679 | | | $ | 3,479 | | | 11.1 | % | | 10.4 | % | | 11.6 | % |
| Unconsolidated (1) | 10,433 | | | 4,673 | | | 5,760 | | | 9,552 | | | 4,217 | | | 5,335 | | | 9.2 | % | | 10.8 | % | | 8.0 | % |
| Combined | $ | 17,274 | | | $ | 7,631 | | | $ | 9,643 | | | $ | 15,710 | | | $ | 6,896 | | | $ | 8,814 | | | 10.0 | % | | 10.7 | % | | 9.4 | % |
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____________________________________________________ (1) Unconsolidated amounts represent BRT's pro-rata share. See definition of pro-rata under "Non-GAAP Financial Measures and Definitions."
(2) Reflects the income and expenses for the sold JV's prior to the sale.
Six months ended June 30,
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| Portfolio | 2022 | | 2021 | | Variance |
| Revenues | | Property Operating Expenses | | NOI | | Revenues | | Property Operating Expenses | | NOI | | Revenues | | Property Operating Expenses | | NOI |
| Consolidated | $ | 26,113 | | | $ | 11,101 | | | $ | 15,012 | | | $ | 14,053 | | | $ | 6,283 | | | $ | 7,770 | | | 85.8 | % | | 76.7 | % | | 93.2 | % |
| Unconsolidated (1) | 30,286 | | 13,496 | | 16,790 | | 41,701 | | 19,747 | | 21,954 | | (27.4) | % | | (31.7) | % | | (23.5) | % |
| Combined | $ | 56,399 | | | $ | 24,597 | | | $ | 31,802 | | | $ | 55,754 | | | $ | 26,030 | | | $ | 29,724 | | | 1.2 | % | | (5.5) | % | | 7.0 | % |
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| Same Store | | | | | | | | | | | | | | | | | |
| 2022 | | 2021 | | Variance |
| Revenues | | Property Operating Expenses | | NOI | | Revenues | | Property Operating Expenses | | NOI | | Revenues | | Property Operating Expenses | | NOI |
| Consolidated | $ | 13,436 | | | $ | 5,717 | | | $ | 7,719 | | | $ | 12,139 | | | $ | 5,214 | | | $ | 6,925 | | | 10.7 | % | | 9.6 | % | | 11.5 | % |
| Unconsolidated (1) (2) | 20,640 | | 9,094 | | 11,546 | | 18,727 | | 8,610 | | 10,117 | | 10.2 | % | | 5.6 | % | | 14.1 | % |
| Combined | $ | 34,076 | | | $ | 14,811 | | | $ | 19,265 | | | $ | 30,866 | | | $ | 13,824 | | | $ | 17,042 | | | 10.4 | % | | 7.1 | % | | 13.0 | % |
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_____________________________________________________________
(1) Unconsolidated amounts represent BRT's pro-rata share. See definition of pro-rata under "Non-GAAP Financial Measures and Definitions.".
(2) Reflects the income and expenses for the sold JV's prior to the sale.
BRT Apartments Corp. (NYSE: BRT)
Acquisitions and Dispositions
(dollars in thousands)
________________________________________________________________________________________
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| ACQUISITIONS | | | | | | | | | | | | | | |
| Buyout of Joint Venture Interest | | | | | | | | | | | | | | |
| Property/Location | | Purchase Date | | Units | | Purchase Price (1) | | Pre-Acquisition ownership % in the JV | | Post-Acquisition Ownership % | | | | |
| Verandas at Alamo - San Antonio, TX | | 3/23/2022 | | 288 | | $ | 8,721 | | | 71.9 | % | | 100.0 | % | | | | |
| Vanguard Heights - Creve Coeur, MO | | 4/7/2022 | | 174 | | 4,880 | | | 78.4 | % | | 100.0 | % | | | | |
| Jackson Square - Tallahassee, FL | | 5/11/2022 | | 242 | | 7,215 | | | 80.0 | % | | 100.0 | % | | | | |
| Brixworth at Bridge Street - Huntsville, AL | | 5/24/2022 | | 208 | | 10,697 | | | 80.0 | % | | 100.0 | % | | | | |
| The Woodland Apartments - Boerne, TX | | 5/26/2022 | | 120 | | 3,881 | | | 80.0 | % | | 100.0 | % | | | | |
| Grove at River Place - Macon, GA | | 6/30/2022 | | 240 | | 7,485 | | | 80.0 | % | | 100.0 | % | | | | |
| | | | 1,272 | | | $ | 42,879 | | | | | | | | | |
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| Buyout of Joint Venture Interest - subsequent to June 30, 2022 | | |
| Property/Location | | Purchase Date | | Units | | Purchase Price (1) | | Pre-Acquisition ownership % in the JV | | Post-Acquisition Ownership % | | | | |
| Civic Center I - Southaven, MS | | 7/12/2022 | | 392 | | $ | 18,233 | | | 74.7 | % | | 100 | % | | | | |
| Civic Center II - Southaven, MS | | 7/12/2022 | | 384 | | 17,942 | | | 74.7 | % | | 100 | % | | | | |
| Abbotts Run - Wilmington, NC | | 7/14/2022 | | 264 | | 9,010 | | | 80.0 | % | | 100 | % | | | | |
| Somerset At Trussville - Birmingham, AL | | 7/19/2022 | | 328 | | 10,558 | | | 80.0 | % | | 100 | % | | | | |
| Magnolia Pointe - Madison, AL | | 8/3/2022 | | 204 | | | 7,246 | | | 80.0 | % | | 100 | % | | | | |
| | | | 1,572 | | | $ | 62,989 | | | | | | | | | |
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| (1) The purchase price gives effect to our partner's promote interest. | | | | | | |
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| 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 | % | | | | | | |
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| DISPOSITIONS | | | | | | | | | | | | | | |
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| 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 | |
| | | | 868 | | | | | $ | 213,300 | | | $ | 1,473 | | | $ | 101,333 | | | $ | 53,059 | |
BRT Apartments Corp. (NYSE: BRT)
Contracted Disposition
(dollars in thousands)
________________________________________________________________________________________ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CONTRACTED SALE OF PROPERTY BY UNCONSOLIDATED JOINT VENTURES (1) |
| Property/Location | | | | No. of Units | | Interest Owned | | Sales Price | | Estimate - BRT's share of Prepayment Charge | | Estimate - Gain on Sale | | Estimate - BRT's Share of Gain on Sale |
| Waters Edge - Columbia, SC | | | | 204 | | 80 | % | | $ | 32,400 | | | $ | 263 | | | $ | 16,848 | | | $ | 11,542 | |
(1) It is anticipated that this sale will be completed during the quarter ending September 30, 2022
BRT Apartments Corp. (NYSE: BRT)
Value-Add Program and Capital Expenditures
Quarter ended June 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 |
| 107 | | $ | 773,000 | | | $ | 7,224 | | | $ | 279 | | | 46% | | 800 |
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| (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. |
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| 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) | $ | 340,000 | | | $ | 70,000 | | | $ | 270,000 | |
| Estimated Non-Recurring Capital Expenditures (2) | 3,781,000 | | | 691,000 | | | 3,090,000 | |
| Total Capital Expenditures | $ | 4,121,000 | | | $ | 761,000 | | | $ | 3,360,000 | |
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| Replacements (operating expense) (3) | $ | 811,000 | | | $ | 150,000 | | | $ | 661,000 | |
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Estimated Recurring Capital Expenditures and
Replacements per unit (8,985 units) | $ | 137 | | | $ | 26 | | | $ | 111 | |
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(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. |
BRT Apartments Corp. (NYSE: BRT)
Debt Analysis
As of June 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 | | $ | 15,977 | | | $ | 1,073 | | | $ | 14,904 | | | 5 | % | | 3.79 | % |
| 2023 | | 2,218 | | | 2,218 | | | — | | | — | % | | — | % |
| 2024 | | 2,823 | | | 2,823 | | | — | | | — | % | | — | % |
| 2025 | | 18,805 | | | 3,430 | | | 15,375 | | | 5 | % | | 4.42 | % |
| 2026 | | 20,188 | | | 2,685 | | | 17,503 | | | 6 | % | | 4.55 | % |
| Thereafter | | 239,826 | | | 3,200 | | | 236,626 | | | 84 | % | | 3.85 | % |
| Total | | $ | 299,837 | | | $ | 15,429 | | | $ | 284,408 | | | 100 | % | | |
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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 | | $ | 1,273 | | | $ | 1,273 | | | — | | | — | % | | — | % |
| 2023 | | 3,104 | | | 3,104 | | | $ | — | | | — | % | | — | % |
| 2024 | | 3,653 | | | 3,653 | | | — | | | — | % | | — | % |
| 2025 | | 4,159 | | | 4,159 | | | — | | | — | % | | — | % |
| 2026 | | 70,043 | | | 4,184 | | | 65,859 | | | 31 | % | | 4.02 | % |
| Thereafter | | 154,578 | | | 6,807 | | | 147,771 | | | 69 | % | | 4.04 | % |
| Total | | $ | 236,810 | | | $ | 23,180 | | | $ | 213,630 | | | 100 | % | | |
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| Combined (2) | | | | | | |
| Year | | Total Principal Payments | | Scheduled Amortization | | Principal Payments Due at Maturity | | Percent of Total Principal Payments Due At Maturity | | Weighted Average Interest Rate (1) |
| 2022 | | $ | 17,250 | | | $ | 2,346 | | | $ | 14,904 | | | 3 | % | | 4.04 | % |
| 2023 | | 5,322 | | | 5,322 | | | — | | | 0 | % | | 4.12 | % |
| 2024 | | 6,476 | | | 6,476 | | | — | | | — | | | — | % |
| 2025 | | 22,964 | | | 7,589 | | | 15,375 | | | 3 | % | | 4.42 | % |
| 2026 | | 90,231 | | | 6,869 | | | 83,362 | | | 17 | % | | 4.14 | % |
| Thereafter | | 394,404 | | | 10,007 | | | 384,397 | | | 77 | % | | 4.11 | % |
| Total | | $ | 536,647 | | | $ | 38,609 | | | $ | 498,038 | | | 100 | % | | |
| Weighted Average Remaining Term to Maturity (2) | | 7.76 | | years | | | |
| Weighted Average Interest Rate (2) | | 3.95 | % | | | | |
| Debt Service Coverage Ratio for the quarter ended June 30, 2022 | 1.86 | | (3) | | | |
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(1) Based on principal payments due at maturity.
|
(2) Includes consolidated and BRT's pro rata share of unconsolidated amounts. |
| (3) See definition under "Non-GAAP Financial Measures and Definitions." Includes consolidated and 100% of the unconsolidated amounts. |
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| Junior Subordinated Notes | | | |
| Principal Balance | | $37,400 | |
| Interest Rate | | 3 month LIBOR + 2.00% (i.e, 3.286% at 6/30/2022) |
| Maturity | | April 30, 2036 |
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| Credit Facility (as of June 30, 2022) | | | |
| Maximum Amount Available (a) | | Up to $35,000 | |
| Amount Outstanding (b) | | $0 | |
| Interest Rate | | Prime + 0.25% (floor of 3.50%) | |
| Maturity | | November, 2024 | |
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| (a) Subject to an additional uncommitted $25 million accordion feature | |
| (b) Amount outstanding as at August 5, 2022 is $22,000 with an interest rate of 5.75%. | |
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 June 30, | | Six Months Ended June 30, |
| | 2022 | | 2021 | | 2022 | | 2021 |
| GAAP Net income attributable to common stockholders | | $ | 35,607 | | | $ | 6,027 | | | $ | 47,115 | | | $ | 2,262 | |
| Less: Other Income | | (2) | | | (3) | | | (6) | | | (7) | |
| Add: Interest expense | | 2,912 | | | 1,609 | | | 4,933 | | | 3,269 | |
| General and administrative | | 3,533 | | | 3,154 | | | 7,166 | | | 6,268 | |
| Impairment charge | | — | | | 520 | | | — | | | 520 | |
| Depreciation and amortization | | 5,010 | | | 1,416 | | | 8,616 | | | 2,953 | |
| Provision for taxes | | 724 | | | 67 | | | 798 | | | 124 | |
| Less: Gain on sale of real estate | | — | | | (7,279) | | | (6) | | | (7,279) | |
| Gain on the sale of partnership interest | | — | | | (2,244) | | | — | | | (2,244) | |
Equity in earnings from sale of unconsolidated joint venture
properties | | (40,098) | | | — | | | (53,059) | | | — | |
| Add: Loss on extinguishment of debt | | 563 | | | — | | | 563 | | | — | |
| Adjust for: Equity in loss (earnings) from sale of unconsolidated joint venture properties | | 50 | | | 492 | | | (1,180) | | | 1,837 | |
| Add: Net loss attributable to non-controlling interests | | 36 | | | 33 | | | 72 | | | 67 | |
| Net Operating Income | | $ | 8,335 | | | $ | 3,792 | | | $ | 15,012 | | | $ | 7,770 | |
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| Less: Non-same store Net Operating Income (loss) | | $ | 4,452 | | | $ | 313 | | | $ | (7,293) | | | $ | (845) | |
| Same store Net Operating Income | | $ | 3,883 | | | $ | 3,479 | | | $ | 7,719 | | | $ | 6,925 | |
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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 June 30, | | Six Months Ended June 30, |
| | 2022 | | 2021 | | 2022 | | 2021 |
| BRT equity in earnings (loss) from joint ventures | | 40,048 | | | (492) | | | $ | 54,239 | | | $ | (1,837) | |
| Add: Interest expense | | 3,106 | | | 5,471 | | | 7,050 | | | 10,930 | |
| Depreciation | | 3,259 | | | 6,276 | | | 7,577 | | | 12,875 | |
| Loss on extinguishment of debt | | 1,469 | | | — | | | 1,488 | | | — | |
| Less: Impairment of asset | | — | | | 348 | | | — | | | 2,010 | |
| Insurance recovery | | — | | | (348) | | | — | | | (2,010) | |
| Gain on insurances recoveries | | (42) | | | — | | | (428) | | | — | |
| Gain on sale of real estate | | (40,098) | | | — | | | (53,059) | | | — | |
| Equity in earnings of joint ventures | | (22) | | | (5) | | | (77) | | | (14) | |
| Net Operating Income | | $ | 7,720 | | | $ | 11,250 | | | $ | 16,790 | | | $ | 21,954 | |
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| Less: Non-same store Net Operating Income | | $ | (1,960) | | | $ | (5,915) | | | (5,244) | | | (11,837) | |
| Same store Net Operating Income | | $ | 5,760 | | | $ | 5,335 | | | $ | 11,546 | | | $ | 10,117 | |
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| Consolidated same store Net Operating Income | | $ | 3,883 | | | $ | 3,479 | | | 7,719 | | | 6,925 | |
| Unconsolidated same store Net Operating Income | | 5,760 | | | 5,335 | | | 11,546 | | | 10,117 | |
| Combined same store Net Operating Income | | $ | 9,643 | | 9,643,000 | | $ | 8,814 | | | $ | 19,265 | | | $ | 17,042 | |
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 June 30, 2022 to the BRT pro-rata information presented below: | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, 2022 | | |
| | Total | | Partner Share | | BRT Share | | |
| Revenues: | | | | | | | | |
| Rental and other revenue | | $ | 22,107 | | | $ | 8,156 | | | $ | 13,951 | | | |
| Total revenues | | 22,107 | | | 8,156 | | | 13,951 | | | |
| Expenses: | | | | | | | | |
| Real estate operating expenses | | 9,842 | | | 3,611 | | | 6,231 | | | |
| Interest expense | | 4,893 | | | 1,787 | | | 3,106 | | | |
| Depreciation | | 5,208 | | | 1,949 | | | 3,259 | | | |
| Total expenses | | 19,943 | | | 7,347 | | | 12,596 | | | |
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| Total revenues less total expenses | | 2,164 | | | 809 | | | 1,355 | | | |
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| Other equity earnings | | 22 | | | — | | | 22 | | | |
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| Gain on insurance recoveries | | 52 | | | 10 | | | 42 | | | |
| Gain on sale of real estate properties | | 77,681 | | | 37,583 | | | 40,098 | | | |
| Loss on extinguishment of debt | | (2,888) | | | (1,419) | | | (1,469) | | | |
| Net income | | $ | 77,031 | | | $ | 36,983 | | | $ | 40,048 | | | |
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| | Three Months Ended June 30, 2021 |
| | Total | | Partner Share | | BRT Share |
| Revenues: | | | | | | |
| Rental and other revenue | | $ | 33,005 | | | $ | 11,993 | | | $ | 21,012 | |
| Total revenues | | 33,005 | | | 11,993 | | | 21,012 | |
| Expenses: | | | | | | |
| Real estate operating expenses | | 15,233 | | | 5,471 | | | 9,762 | |
| Interest expense | | 8,472 | | | 3,001 | | | 5,471 | |
| Depreciation | | 9,791 | | | 3,515 | | | 6,276 | |
| Total expenses | | 33,496 | | | 11,987 | | | 21,509 | |
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| Total revenues less total expenses | | (491) | | | 6 | | | (497) | |
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| Other equity earnings | | 5 | | | — | | | 5 | |
| Impairment charges | | (490) | | | (142) | | | (348) | |
| Insurance recoveries | | 490 | | | 142 | | | 348 | |
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| Net loss | | $ | (486) | | | $ | 6 | | | $ | (492) | |
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)
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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-Q to the BRT pro rata information presented here in this supplemental.
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| | Six Months Ended June 30, 2022 |
| | Total | | Partner Share | | BRT Share |
| Revenues: | | | | | | |
| Rental and other revenue | | $ | 47,338 | | | $ | 17,052 | | | $ | 30,286 | |
| Total revenues | | 47,338 | | | 17,052 | | | 30,286 | |
| Expenses: | | | | | | |
| Real estate operating expenses | | 21,011 | | | 7,515 | | | 13,496 | |
| Interest expense | | 10,919 | | | 3,869 | | | 7,050 | |
| Depreciation | | 11,844 | | | 4,267 | | | 7,577 | |
| Total expenses | | 43,774 | | | 15,651 | | | 28,123 | |
| | | | | | |
| Total revenues less total expenses | | 3,564 | | | 1,401 | | | 2,163 | |
| | | | | | |
| Other equity earnings | | 77 | | | — | | | 77 | |
| | | | | | |
| | | | | | |
| Gain on insurance recoveries | | 567 | | | 139 | | | 428 | |
| Gain on sale of real estate properties | | 101,333 | | | 48,274 | | | 53,059 | |
| Loss on extinguishment of debt | | (2,918) | | | (1,430) | | | (1,488) | |
| Net income | | $ | 102,623 | | | $ | 48,384 | | | $ | 54,239 | |
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| | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, 2021 |
| | Total | | Partner Share | | BRT Share |
| Revenues: | | | | | | |
| Rental and other revenue | | $ | 65,677 | | | $ | 23,976 | | | $ | 41,701 | |
| Total revenues | | 65,677 | | | 23,976 | | | 41,701 | |
| Expenses: | | | | | | |
| Real estate operating expenses | | 30,936 | | | 11,189 | | | 19,747 | |
| Interest expense | | 16,994 | | | 6,064 | | | 10,930 | |
| Depreciation | | 20,176 | | | 7,301 | | | 12,875 | |
| Total expenses | | 68,106 | | | 24,554 | | | 43,552 | |
| | | | | | |
| Total revenues less total expenses | | (2,429) | | | (578) | | | (1,851) | |
| | | | | | |
| Other equity earnings | | 14 | | | — | | | 14 | |
| Impairment charges | | (2,813) | | | (803) | | | (2,010) | |
| Insurance recoveries | | 2,813 | | | 803 | | | 2,010 | |
| Gain on insurance recoveries | | — | | | — | | | 0 | |
| | | | | | |
| | | | | | |
| Net loss | | $ | (2,415) | | | $ | (578) | | | $ | (1,837) | |
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)
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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.
BRT Apartments Corp. (NYSE: BRT)
Portfolio Table
As of 8/5//2022
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| Property | City | State | Year Built | Year Acquired | Property Age | | Units | Q2 2022 Avg. Occupancy | Q2 2022 Avg. Rent per Occ. Unit | % Ownership |
| Consolidated Properties | | | | | | | | | | |
| Abbotts Run | Wilmington | NC | 2001 | 2020 | 22 | | 264 | 97.5% | $ | 1,075 | | 100 | % |
| Avalon | Pensacola | FL | 2008 | 2014 | 15 | | 276 | 97.2% | 1,355 | | 100 | % |
| Avondale Station | Decatur | GA | 1950 | 2012 | 73 | | 212 | 96.4% | 1,307 | | 100 | % |
| Bell's Bluff | Nashville | TN | 2018 | 2018 | 5 | | 402 | 97.5% | 1,738 | | 100 | % |
| Brixworth at Bridgestreet | Huntsville | AL | 1985 | 2013 | 38 | | 208 | 94.8% | 934 | | 100 | % |
| Civic Center 1 | Southaven | MS | 2002 | 2016 | 21 | | 392 | 96.8% | 1,109 | | 100 | % |
| Civic Center 2 | Southaven | MS | 2005 | 2016 | 18 | | 384 | 96.5% | 1,160 | | 100 | % |
| Crestmont at Thornblade | Greenville | SC | 1998 | 2018 | 25 | | 266 | 97.5% | 1,211 | | 100 | % |
| Crossings of Bellevue | Nashville | TN | 1985 | 2014 | 38 | | 300 | 96.8% | 1,289 | | 100 | % |
| Grove at River Place | Macon | GA | 1988 | 2016 | 35 | | 240 | 95.3% | 846 | | 100 | % |
| Jackson Square | Tallahassee | FL | 1996 | 2017 | 27 | | 242 | 94.2% | 1,246 | | 100 | % |
| Kilburn Crossing | Fredericksburg | VA | 2005 | 2016 | 18 | | 220 | 98.0% | 1,648 | | 100 | % |
| Newbridge Commons | Columbus | OH | 1999 | 2013 | 24 | | 264 | 96.7% | 1,012 | | 100 | % |
| Parkway Grande | San Marcos | TX | 2014 | 2015 | 9 | | 192 | 97.8% | 1,160 | | 100 | % |
| Silvana Oaks | North Charleston | SC | 2010 | 2012 | 13 | | 208 | 97.4% | 1,353 | | 100 | % |
| Somerset at Trussville | Trussville | AL | 2007 | 2019 | 16 | | 328 | 97.0% | 1,139 | | 100 | % |
| Vanguard Heights | Creve Coeur | MO | 2016 | 2017 | 7 | | 174 | 96.2% | 1,547 | | 100 | % |
| Verandas at Alamo Ranch | San Antonio | TX | 2015 | 2016 | 8 | | 288 | 92.7% | 1,236 | | 100 | % |
| Woodland Apartments | Boerne | TX | 2007 | 2017 | 16 | | 120 | 97.9% | 1,131 | | 100 | % |
| Woodland Trails | LaGrange | GA | 2010 | 2015 | 13 | | 236 | 98.7% | 1,166 | | 100 | % |
| Magnolia Pointe | Madison | AL | 1991 | 2017 | 32 | | 204 | 93.1% | 1,126 | | 100 | % |
| Weighted Avg./Total Consolidated | | | | | 22 | | 5,420 | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Properties owned by Unconsolidated Joint Ventures | | | | | | | |
| Canalside Lofts | Columbia | SC | 2008/2013 | 2017 | 15 | | 374 | 96.8% | 1,285 | | 32 | % |
| Canalside Sola | Columbia | SC | 2018 | 2018 | 5 | | 339 | 95.9% | 1,456 | | 46 | % |
| Chatham Court and Reflections | Dallas | TX | 1986 | 2016 | 37 | | 494 | 94.9% | 1,096 | | 50 | % |
| Gateway Oaks | Forney | TX | 2016 | 2016 | 7 | | 313 | 98.2% | 1,252 | | 50 | % |
| Landings of Carrier Parkway | Grand Prairie | TX | 2001 | 2018 | 22 | | 281 | 92.6% | 1,268 | | 50 | % |
| | | | | | | | | | |
| Mercer Crossing | Dallas | TX | 2014/2016 | 2017 | 9 | | 509 | 95.4% | 1,533 | | 50 | % |
| Pointe at Lenox Park | Atlanta | GA | 1989 | 2016 | 34 | | 271 | 94.1% | 1,377 | | 74 | % |
| The Village at Lakeside | Auburn | AL | 1988 | 2019 | 35 | | 200 | 97.5% | 965 | | 80 | % |
| Waters Edge at Harbison (1) | Columbia | SC | 1996 | 2016 | 27 | | 204 | 95.4% | 1,055 | | 80 | % |
| Weighted Avg./Total Unconsolidated | | | | | 20 | | 2,985 | | | |
| | | | | | | | | | |
| Development | | | | | | | | | | |
| Stono Oaks (2) | Johns Island | SC | | | | | | | | |
| | | | | | | |
| Weighted Avg./Total Portfolio | | | | | 21 | | 8,405 | | | |
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(1) It is anticipated that this sale will be completed during the quarter ending September 30, 2022
(2) Purchased a 17.45% interest in a planned 240-unit development property