BRT Apartments : First Quarter 2025 Supplemental

Published: 2025-05-08 20:08:44 ET BRT

Published on 05/08/2025 at 20:08

SUPPLEMENTAL FINANCIAL INFORMATION FOR THREE MONTHS ENDED

MARCH 31, 2025

May 8, 2025

60 Cutter Mill Rd., Great Neck, NY 11021

We consider some of the information set forth herein to contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Such forward-looking statements include, without limitation, statements regarding expected operating performance and results, property acquisition and disposition activity, joint venture activity, development and value add activity and other capital expenditures, and capital raising and financing activity, as well as revenue and expense growth, occupancy, interest rate and other economic expectations. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "forecasts," "projects," "assumes," "will," "may," "could," "should," "budget," "target," "outlook," "opportunity," "guidance" and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases, beyond our control, which may cause our actual results, performance or achievements to be materially different from the results of operations, financial conditions or plans expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such forward-looking statements included in this report may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved and investors are cautioned not to place undue reliance on such information.

The following factors, among others, could cause our actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements:

inability to generate sufficient cash flows due to unfavorable economic and market conditions (e.g., inflation, volatile interest rates and the possibility of a recession), changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws or other factors;

adverse changes in real estate markets, including, but not limited to, the extent of future demand for multifamily units in our significant markets, barriers of entry into new markets which we may seek to enter in the future, limitations on our ability to increase or collect rental rates, competition, our ability to identify and consummate attractive acquisitions and dispositions on favorable terms, and our ability to reinvest sale proceeds in a manner that generates favorable returns;

general and local real estate conditions, including any changes in the value of our real estate;

decreasing rental rates or increasing vacancy rates;

challenges in acquiring or investing in multi-family properties (including challenges in (i) buying properties directly without the participation of joint venture partners and (ii) making alternative investments in multi-family properties, and the limited number of multi-family property investment/acquisition opportunities available to us), which transactions may not be completed or may not produce the cash flows or income expected;

the competitive environment in which we operate, including competition that could adversely affect our ability to acquire properties and/or limit our ability to lease apartments or increase or maintain rental rates;

exposure to risks inherent in investments in a single industry and sector;

the concentration of our multi-family properties in the Southeastern United States and Texas, which makes us more susceptible to adverse developments in those markets;

increases in expenses over which we have limited control, such as real estate taxes, insurance costs and utilities, due to inflation and other factors;

impairment in the value of real estate we own;

failure of property managers to properly manage properties;

accessibility of debt and equity capital markets;

disagreements with, or misconduct by, joint venture partners;

inability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures due to the level and volatility of interest or capitalization rates or capital market conditions

extreme weather and natural disasters such as hurricanes, tornadoes and floods;

lack of or insufficient amounts of insurance to cover, among other things, losses from catastrophes;

risks associated with acquiring value-add multi-family properties, which involves greater risks than more conservative approaches;

the condition of Fannie Mae or Freddie Mac, which could adversely impact us;

changes in Federal, state and local governmental laws and regulations, including laws and regulations relating to taxes and real estate and related investments;

our failure to comply with laws, including those requiring access to our properties by disabled persons, which could result in substantial costs;

board determinations as to timing and payment of dividends, if any, and our ability or willingness to pay future dividends;

our ability to satisfy the complex rules required to maintain our qualification as a REIT for federal income tax purposes;

possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us or a subsidiary owned by us or acquired by us;

our dependence on information systems, risks associated with breaches of such systems and the impact on us by the use of artificial intelligence by our competitors;

disease outbreaks and other public health events, and measures that are taken by federal, state, and local governmental authorities in response to such outbreaks and events;

impact of climate change on our properties or operations;

risks associated with the stock ownership restrictions of the Internal Revenue Code of 1986, as amended (the "Code") for REITs and the stock ownership limit imposed by our charter; and

the other factors described in the reports we file with the SEC, including those set forth in our Annual Report on Form 10-K under the captions "Item 1. Business," "Item 1A. Risk Factors," and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations".

We undertake no obligation to update or revise the information herein, whether as a result of new information, future events or circumstances, or otherwise.

Units under rehabilitation for which we have received or accrued rental income from business interruption insurance, while not physically occupied, are treated as leased (i.e., occupied) at rental rates in effect at the time of the casualty.

We use pro rata (as defined under "Non-GAAP Financial Measures and Definitions") to help the reader gain a better understanding of our unconsolidated joint ventures. However, the use of pro rata information has certain limitations and is not representative of our operations and accounts as presented in accordance with GAAP. Accordingly, pro rata information should be used with caution and in conjunction with the GAAP data presented herein and in our reports filed with the SEC.

The state-by-state and property-by-property revenue, weighted average rent per occupied unit and similar information presented herein do not give effect to the deferred rent concessions.

‌Table of Contents‌

Page Number

Quarterly Results

Financial Highlights

Components of Net Asset Value

Operating Results

Operating Results of Unconsolidated Properties

Funds From Operations and Adjusted Funds From Operations

Consolidated Balance Sheets

Preferred Equity Investments

Stock Repurchases

Value-Add Program and Capital Expenditures

Debt Analysis

Portfolio Data by State

Combined Portfolio Metrics

Portfolio Table

Appendix

Non-GAAP Financial Measure and Definitions

Consolidated Same Store Comparison

Unconsolidated Same Store Comparison

Reconciliations

Balance Sheets of Unconsolidated Joint Venture Entities

Reported a 26% increase in net income per diluted share for the first quarter of 2025 of a net loss of $2.4 million or

$(0.12) per diluted share, compared to a net loss of $3.2 million or $(0.17) in the first quarter of 2024.

Funds from Operations, or FFO, of $0.30 per diluted share grew 20% in the first quarter 2025, compared to $0.25 in the first quarter 2024.

Adjusted Funds from Operations, or AFFO, of $0.39 per diluted share in the first quarter 2025 an increase of 11%, compared to $0.35 in the first quarter 2024.

Equity in earnings of unconsolidated joint ventures was $413,000 in the first quarter of 2025.

Combined Portfolio NOI increased 2.2% for the first quarter of 2025 compared to the prior-year period.

Repurchased 78,724 shares during the first quarter 2025 at a weighted average price of $17.55, and subsequent to March 31, 2025, the Company repurchased 63,356 shares at a weighted average price of $15.84.

As of April 14, 2025, the Company is authorized to repurchase up to $8,752,000 in BRT shares.

Maintained revolving credit facility of up to $40.0 million, with $0 outstanding, and maturity in September 2027.

See the reconciliations provided later in this supplemental of FFO, AFFO and Combined Portfolio NOI, to net income, as calculated in accordance with GAAP, and the definitions of such terms under "Non-GAAP Financial Measures and Definitions."

The operational environment in BRT's Combined Portfolio is expected to be consistent with other Sunbelt-focused operators with new supply muting new and renewal lease rent growth until 2026 as the new supply is absorbed.

BRT intends to emphasize stable average occupancy within the portfolio until it can achieve a lift in rental rates.

Controllable expense growth is expected to grow modestly compared to 2024 and insurance expense is expected to decline.

BRT's balance sheet has no debt maturities until the third quarter of 2025 and full availability on its credit facility.

The Company expects to pursue additional Preferred Equity financing opportunities, like the Charlestowne Apartments and The Reserve at Beaumont Oaks transactions done in 2024.

The Company remains patient on asset growth in the near term but is cautiously optimistic that it may find additional opportunities to deploy its available liquidity for capital situations and/or asset acquisitions in second half of 2025.

Long-term, the Company continues to believe the Sunbelt offers compelling advantages due to the predominance of pro-business states, along with better population and job growth from migration patterns and business investment.

With new supply growth expected to moderate in Sunbelt markets in 2025 and 2026, the Company expects a disciplined capital allocation strategy, with a focus on stabilizing occupancy in a challenging leasing environment in 2025 and anticipates better growth in 2026 for new investment opportunities.

As of March 31,

2025

2024

Market capitalization (thousands)

$ 321,572

$ 312,194

Shares outstanding (thousands)

18,916

18,583

Closing share price

$ 17.00

$ 16.80

Quarterly dividend declared per share

$ 0.25

Quarter ended March 31,

Combined

Consolidated

Unconsolidated

2025

2024

2025

2024

2025

2024

Properties owned

(a)

Units (a)

7,947

7,707

5,420

2,527

2,287

Average occupancy (b)

93.7 %

93.3 %

93.7 %

93.4 %

93.7 %

93.2 %

Average monthly rental revenue per occupied unit (b)

$ 1,403

$ 1,396

$ 1,371

$ 1,359

$ 1,476

$ 1,485

(a) Includes a 240-unit multi-family property in lease

(b) Excludes a 240-unit multi-family property in lease

Quarter ended March 31,

Per share data

2025

(Unaudited)

2024

(Unaudited

Loss per share, basic and diluted

$ (0.12)

$ (0.17)

FFO per share of common stock (diluted) (1)

$ 0.30

$ 0.25

AFFO per share of common stock (diluted) (1)

$ 0.39

$ 0.35

Debt to Enterprise Value (2) 67 % 67 %

As of March 31, 2025 2024

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."

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."

(all in thousands)

Net Operating Income for the three months ended March 31, 2025

Consolidated

13,069

Unconsolidated (Pro rata)

3,050

Total Net Operating Income

16,119

OTHER ASSETS

Cash and Cash Equivalents

24,366

Cash and Cash Equivalents - Unconsolidated pro rata

2,467

Restricted Cash

3,012

Other Assets

16,499

Other Assets - Unconsolidated pro rata

3,281

Total Cash and Other Assets

49,625

OTHER LIABILITIES

Accounts Payable and Accrued Liabilities

22,645

Accounts Payable and Accrued Liabilities - Unconsolidated pro rata

2,481

Total Other Liabilities

25,126

DEBT SUMMARY

Mortgages Payable:

Consolidated

445,711

Unconsolidated (Pro rata)

115,331

Total Mortgages Payable

561,042

Credit Facility

Subordinated Notes

37,168

Total Debt Outstanding

598,210

Common Shares Outstanding

18,916

(1) See the Appendix for a reconciliation of the non-GAAP amounts presented to GAAP amounts

(amounts in thousands except per share data)

2025

2024

Revenues:

Rental and other revenue from real estate properties

23,619

23,298

Loan interest and other income

487

105

Total revenues

24,106

23,403

Expenses:

Real estate operating expenses

10,550

10,579

Interest expense

5,676

5,523

General and administrative

4,070

4,152

Depreciation and amortization

6,541

6,435

Total expenses

26,837

26,689

Total revenues less total expenses

(2,731)

(3,286)

Equity in earnings of unconsolidated joint ventures

413

228

Insurance recovery

Loss from continuing operations

(2,250)

(3,058)

Income tax provision

Loss from continuing operations, net of taxes

(2,308)

(3,136)

Net income attributable to non-controlling interests

(44)

(35)

Net loss attributable to common stockholders

(2,352)

(3,171)

Weighted average number of shares of common stock outstanding:

Basic and diluted 17,987,092 17,625,577

Per share amounts attributable to common stockholders:

Basic and diluted $ (0.12) $ (0.17)

(amounts in thousands)

2025

2024

Revenues:

Rental and other revenue

11,709

10,624

Total revenues

11,709

10,624

Expenses:

Real estate operating expenses

5,173

5,446

Interest expense

2,745

2,778

Depreciation

3,748

2,893

Total expenses

11,666

11,117

Total revenues less total expenses

(493)

Other equity earnings

Net (loss) income from joint ventures

$ 133

(475)

BRT equity in earnings of unconsolidated joint venture properties

$ 413

228

(dollars in thousands)

The tables below provides a reconciliation of net loss determined in accordance with GAAP to FFO and AFFO on a dollar and per share basis for each of the indicated periods (dollars in thousands, except per share amounts):

2025

2024

GAAP Net loss attributable to common stockholders

(2,352)

(3,171)

Add: depreciation and amortization of properties

6,541

6,435

Add: our share of depreciation in unconsolidated joint venture properties

1,533

1,367

Adjustments for non-controlling interests

(4)

NAREIT Funds from operations attributable to common stockholders

5,718

4,627

Adjustments for: deferred rent concessions and straight line rent

Adjustments for: our share of straight-line rent and rent concession accruals from unconsolidated joint venture properties

(12)

Add: amortization of restricted stock and RSU expense

1,142

1,342

Add: amortization of deferred mortgage and debt costs

283

271

Add: our share of deferred mortgage costs from unconsolidated joint venture properties

Add: amortization of fair value adjustment for mortgage debt

129

143

Adjustments for non-controlling interests

(4)

Adjusted funds from operations attributable to common stockholders

$ 7,388

$ 6,434

2025

2024

GAAP Net (loss) income attributable to common stockholders

(0.12)

(0.17)

Add: depreciation and amortization of properties

0.34

0.35

Add: our share of depreciation in unconsolidated joint venture properties

0.08

0.07

Adjustment for non-controlling interests

NAREIT Funds from operations per diluted common share

0.30

0.25

Adjustments for: deferred rent concessions and straight line rent

0.01

Adjustments for: our share of straight-line rent and rent concession accruals in unconsolidated joint venture properties

Add: amortization of restricted stock and RSU expense

0.06

0.08

Add: amortization of deferred mortgage and debt costs

0.01

Add: our share of deferred mortgage and debt costs from unconsolidated joint venture properties

Add: amortization of fair value adjustment for mortgage debt

0.01

Adjustments for non-controlling interests

Adjusted funds from operations per diluted common share

$ 0.39

$ 0.35

Diluted shares outstanding for FFO and AFFO

18,910,231

18,579,691

(amounts in thousands, except per share amounts)

March 31, 2025

December 31, 2024

(unaudited)

(audited)

ASSETS

Real estate properties, net of accumulated depreciation and amortization

$ 611,519

$ 615,915

Investment in unconsolidated joint ventures

30,834

31,344

Loan receivables, net of deferred fees and credit loss

17,683

17,667

Cash and cash equivalents

24,366

27,856

Restricted cash

3,012

3,221

Other assets

16,499

17,460

Total Assets

$ 703,913

$ 713,463

LIABILITIES AND EQUITY

Liabilities:

Mortgages payable, net of deferred costs

$ 445,711

$ 446,471

Junior subordinated notes, net of deferred costs

37,168

37,163

Credit facility, net of deferred costs

Accounts payable and accrued liabilities

22,645

24,915

Total Liabilities

505,524

508,549

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; 17,993 and 17,872 shares outstanding

180

179

Additional paid-in capital

272,842

272,275

Accumulated deficit

(74,569)

(67,485)

Total BRT Apartments Corp. stockholders' equity

198,453

204,969

Non-controlling interests

(64)

(55)

Total Equity

198,389

204,914

Total Liabilities and Equity

$ 703,913

$ 713,463

(dollars in thousands)

The Company invested in two separate joint ventures which in turn acquired multifamily properties in the locations identified below. In accordance with GAAP, these investments are treated as loans. These investments are unsecured and are subordinate, including the payment of the returns thereon, to the mortgage debt encumbering the property acquired by the applicable joint venture. Information as to these investments at March 31, 2025 is summarized below (dollars and thousands):

Investment

Annual

Current

Hurdle

Invested

Redemption

Deferred Estimated

Interest Income (Current

Location

Date

Return

Amount

Date

fees Credit Loss

Return)

Wilmington, NC

October 2024

13 %

6.00 %

7.00 %

$ 7,000

November 2031

$ 130 $ 102

$ 107

Kennesaw, GA

November 2024

13 %

6.50 %

11,250

June 2029

167 168

186

$ 18,250 $ 297 $ 270 $ 293

These investments provide for (1) an Annual Return (as noted in the table above) compounded monthly, to the Company, of which the Current Return (as noted in the table above) is payable monthly to the extent of available cash flow, and the Hurdle Return also to be paid monthly from remaining cash flow if any, parri passu or after the sponsor's receipt of its management fees and specified returns on its investment and (2) the total amount invested by the Company, including any unpaid portion of the Current Return and the Hurdle Return, to be payable to the Company, prior to any payments to the sponsor, upon the earlier to occur of certain events (e.g., sale of the property or the refinancing of the mortgage underlying the property) and the redemption date specified above. The Current Return is recorded as interest income when it is due from the sponsor and the Hurdle Return is recognized as interest income when it is received. Deferred loan fees are capitalized and recorded into income over the life of the investment. The Company's exposure to loss is limited to its original Invested Amount (as noted in the table above).

The Company's stock repurchase activity during the periods indicated is reflected in the table below:

Month

Shares repurchased

Total cost

Average Cost Per Share

January 2025

65,018

$ 1,137,000

$ 17.49

March 2025

13,706

245,000

17.84

78,724

$ 1,382,000

$ 17.55

Subsequent to quarter end

April 2025

63,356

$ 1,003,000

$ 15.84

As of April 30,2025, up to $8,752,000 of shares are available to be repurchased under the repurchase program.

(Includes consolidated and unconsolidated amounts)

Estimated Rehab Costs

Estimated Average Monthly Rent Increase

Estimated Annualized

Estimated units available to be renovated over next 24

Units Rehabilitated (1)

(2)

Per unit

(3)

ROI (3)

months

123,000 $

7,660 $

143

22%

123

Refers to rehabilitated units with respect to which a new lease or renewal lease was entered into during the period.

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.

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.

(Includes consolidated and unconsolidated amounts)

Estimated Recurring Capital Expenditures (1) Estimated Non-Recurring Capital Expenditures (2) Total Capital Expenditures

Gross Capital Less: JV Partner Expenditures Share

BRT Share of Capital Expenditures (4)

$ 1,448,000 $ 114,000 $ 1,334,000

1,343,000

263,000

1,080,000

$ 2,791,000 $ 377,000 $ 2,414,000

Replacements (operating expense) (3)

$ 594,000

$ 45,000

$ 549,000

Estimated Recurring Capital Expenditures and Replacements per unit (7,707 units) (5)

$ 265

$ 21

$ 244

Recurring capital expenditures represent our estimate of expenditures incurred at the property to maintain the property's existing operations - it excludes revenue enhancing projects.

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.

Replacements are expensed and not capitalized as incurred at the property.

Based on BRT's percentage equity interest.

Excludes a 240-unit multi-family property in lease up.

Consolidated

Total Principal

Scheduled

Principal Payments

Percent of Total Principal Payments

Weighted Average

Year

Payments

Amortization

Due at Maturity

Due At Maturity

Interest Rate (1)

2025

$ 18,856

$ 3,481

$ 15,375

4 %

4.42 %

2026

74,622

5,091

69,531

17 %

4.12 %

2027

46,190

3,395

42,795

10 %

3.96 %

2028

40,696

2,745

37,951

9 %

4.47 %

2029

56,272

2,455

53,817

13 %

3.94 %

Thereafter

212,841

19,575

193,266

47 %

4.10 %

Total

$ 449,477

$ 36,742

$ 412,735

100 %

Year

Total Principal Payments

Scheduled Amortization

Principal Payments Due at Maturity

Percent of Total Principal Payments Due At Maturity

Weighted Average Interest Rate (1)

2025

$ 1,378

- %

2026

25,816

1,806

$ 24,010

22 %

4.65 %

2027

13,026

1,472

11,554

11 %

4.15 %

2028

34,265

450

33,815

31 %

4.26 %

2029

611

- %

Thereafter

40,594

728

39,866

36 %

3.43 %

Total

$ 115,690

$ 6,445

$ 109,245

100 %

Combined (2)

Total Principal

Scheduled

Principal Payments

Percent of Total Principal Payments

Weighted Average

Year

Payments

Amortization

Due at Maturity

Due At Maturity

Interest Rate (1)

2025

$ 20,234

$ 4,859

$ 15,375

3 %

4.42 %

2026

100,438

6,897

93,541

18 %

4.25 %

2027

59,216

4,867

54,349

10 %

4.00 %

2028

74,961

3,195

71,766

14 %

4.37 %

2029

56,883

3,066

53,817

10 %

3.94 %

Thereafter

253,435

20,303

233,132

45 %

3.98 %

Total

$ 565,167

$ 43,187

$ 521,980

100 %

Weighted Average Remaining Term to Maturity (2)

5.4

years

Weighted Average Interest Rate (2)

4.08%

Debt Service Coverage Ratio for the quarter ended March 31, 2025

1.60

(3)

(1) Based on principal payments due at maturity.

(2) Includes consolidated and BRT's pro rata share of unconsolidated amounts.

(3) See definition under "Non-GAAP Financial Measures and Definitions." Includes consolidated and 100% of the unconsolidated amounts.

Principal Balance

$37,400, excluding deferred costs of

$232,000

Interest Rate 3 month term SOFR + 2.26% (i.e., 6.55% at 3/31/2025)

Maturity April 30, 2036

Maximum Amount Available Up to $40,000

Amount Outstanding $0

Interest Rate 1 month SOFR + 2.50% (floor of 6%)

Maturity September 2027

(dollars in thousands, except monthly rent amounts)

Consolidated

Units at period

Property Operating

% of NOI

Weighted Average

Weighted Average Rent

end

Revenues

Expenses

NOI (1)

Contribution

Occupancy

per Occ. Unit

Georgia

688

$ 2,605

$ 1,309

$ 1,296

9.9%

89.1%

$ 1,234

Florida

518

2,397

1,057

1,340

10.3%

95.3%

1,482

Texas

600

2,282

1,233

1,049

8.0%

92.2%

1,175

Ohio

264

1,001

441

560

4.3%

96.7%

1,175

Virginia

220

1,273

510

763

5.8%

97.9%

1,757

North Carolina

264

1,103

424

679

5.2%

97.2%

1,310

South Carolina

474

2,203

1,143

1,060

8.1%

93.2%

1,468

Tennessee

702

3,546

1,422

2,124

16.3%

94.2%

1,657

Alabama

740

2,789

1,311

1,478

11.3%

94.6%

1,182

Mississippi

776

3,150

1,120

2,030

15.5%

93.6%

1,331

Missouri

174

931

468

463

3.5%

93.0%

1,692

Net deferred rent

(95)

(0.7)%

N/A

Legacy assets

434

112

322

2.5%

N/A

Totals

5,420

$ 23,619

$ 10,550

$ 13,069

100%

93.7%

$ 1,371

Units at period end

Revenues

Property Operating Expenses

NOI (1)

% of NOI Contribution

Weighted Average Occupancy

Weighted Average Rent per Occ. Unit

Texas

1,103

$ 2,545

$ 1,292

$ 1,253

41.1%

93.2%

$ 1,448

South Carolina

713

1,352

485

867

28.4%

95.0%

1,576

Georgia

271

923

477

446

14.6%

90.5%

1,517

Alabama

200

622

298

324

10.6%

96.3%

1,228

Net deferred rent

0.6%

N/A

Other (2)

240

197

141

4.6%

N/A

Totals

2,527

$ 5,658

$ 2,608

$ 3,050

100%

93.7%

$ 1,476

(1) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI and pro-rata share under "Non-GAAP Financial Measures and Definitions."

(2) Represents property in lease up.

(dollars in thousands)

2025

2024

% Change

Combined Revenues

28,646

28,394

0.9 %

Combined Operating Expenses

Payroll

2,479

2,426

2.2 %

Real Estate taxes

3,505

3,538

(0.9)%

Management Fees

805

825

(2.4)%

Insurance

1,195

1,415

(15.5)%

Utilities

1,867

1,748

6.8 %

Repairs and Maintenance

1,447

1,501

(3.6)%

Replacements

549

552

(0.5)%

Advertising, Leasing and Other

1,143

1,072

6.6 %

Total Combined Operating Expenses

12,990

13,077

(0.7)%

Total Combined Operating Income $ 15,656 $ 15,317 2.2 %

(1) Please refer to Non-GAAP Financial Measures, Definitions and Reconciliations for definition of Combined Same Store and reconciliation of Net Operating Income. Combined portfolio refers to the consolidated same store properties, the unconsolidated same store properties presented on a pro rata share basis, for all periods presented, with a total of 7,707 units, excluding a 240-unit multi-family property in lease up.

Property

City

State

Year Built

Year Acquired

Property Age

Units

Q1 2025 Avg.

Occupancy

Q1 2025 Avg.

Rent per Occ.

Unit

Consolidated Properties - All 100%

Owned

Silvana Oaks

North Charleston

2010

2012

208

92.8%

$ 1,561

Avondale Station

Decatur

1954

2012

212

90.9%

1,405

Newbridge Commons

Columbus

1999

2013

264

96.7%

1,175

Brixworth at Bridgestreet

Huntsville

1985

2013

208

95.0%

1,025

Avalon

Pensacola

2008

2014

276

94.1%

1,485

Crossings of Bellevue

Nashville

1985

2014

300

96.7%

1,427

Parkway Grande

San Marcos

2014

2015

192

89.6%

1,276

Woodland Trails

LaGrange

2010

2015

236

87.4%

1,376

Kilburn Crossing

Fredericksburg

2005

2016

220

97.9%

1,757

Verandas at Alamo Ranch

San Antonio

2015

2016

288

91.8%

1,093

Grove at River Place

Macon

1988

2016

240

89.3%

942

Civic Center 1

Southaven

2002

2016

392

94.0%

1,303

Civic Center 2

Southaven

2005

2016

384

93.2%

1,360

Vanguard Heights

Creve Coeur

2016

2017

174

93.0%

1,692

Jackson Square

Tallahassee

1996

2017

242

96.7%

1,478

Woodland Apartments

Boerne

2007

2017

120

97.5%

1,209

Magnolia Pointe

Madison

1991

2017

204

93.9%

1,185

Bell's Bluff

W. Nashville

2019

2018

402

92.2%

1,836

Crestmont at Thornblade

Greenville

1998

2018

266

93.4%

1,395

Somerset at Trussville

Trussville

2007

2019

328

94.7%

1,281

Abbotts Run

Wilmington

2001

2020

264

97.2%

1,310

Weighted Avg./Total Consolidated

5,420

Properties owned by Unconsolidated

Joint Ventures

Ownership

Pointe at Lenox Park

Atlanta

1989

2016

271

90.5%

1,516

74 %

Gateway Oaks

Forney

2016

313

95.1%

1,347

50 %

Mercer Crossing

Dallas

2015

2017

509

93.5%

1,596

50 %

Canalside Lofts

Columbia

2008

2017

374

94.0%

1,467

32 %

Landings of Carrier Parkway

Grand Prairie

2001

2018

281

90.5%

1,288

50 %

Canalside Sola

Columbia

2015

2018

339

96.0%

1,694

46 %

The Village at Lakeside

Auburn

1988

2019

200

96.3%

1,228

80 %

Weighted Avg./Total Unconsolidated

2,287

Weighted Avg./Total Portfolio

7,707

Lease up

Stono Oaks

Johns Island

2023

2022

240

77.8%

18 %

Total Units

7,947

‌APPENDIX‌

(dollars in thousands)

Adjusted Funds from Operations (AFFO)

BRT computes AFFO by adjusting FFO for loss on extinguishment of debt, our straight-line rent and rent concession accruals, restricted stock and RSU compensation expense, fair value adjustment of mortgage debt, gain on insurance recovery, insurance recovery from casualty loss and deferred mortgage and debt costs (including, in each case as applicable, from its share of its unconsolidated joint ventures). Since the NAREIT White Paper(as described below) does not provide guidelines for computing AFFO, the computation of AFFO may vary from one REIT to another.

Allowance for Credit Losses

The CECL reserve required under ASU 2016-13 "Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326)" ("ASU 2016-13"), reflects the Company's estimate as of the balance sheet date of potential credit losses related to its loan portfolio. Changes to the CECL reserve are recognized through a provision for or reversal of current expected credit loss reserve on the Company's consolidated statements of operations. ASU 2016-13 specifies the reserve should be based on relevant information about past events, including historical loss experience, current loan portfolio, market conditions and reasonable and supportable macroeconomic forecasts for the duration of each loan.

Combined Portfolio

Combined portfolio refers to the consolidated same store properties, the unconsolidated same store properties presented on a pro rata share basis.

Debt Service Coverage Ratio

Debt service coverage ratio is net operating income ("NOI") divided by total debt service and includes both consolidated and unconsolidated assets.

Funds from Operations (FFO)

BRT computes FFO in accordance with the "White Paper on Funds from Operations" issued by the National Association of Real Estate Investment Trusts ("NAREIT") and NAREIT's related guidance. FFO is defined in the White Paper as net income (calculated in accordance with generally accepted accounting principles), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect funds from operations on the same basis. In computing FFO we do not add back to net income the amortization of costs in connection with our financing activities or depreciation of non-real estate assets.

Net Operating Income (NOI)

BRT computes NOI by adjusting net income (loss) to (a) add back (1) depreciation expense, (2) general and administrative expenses, (3) interest expense, (4) loss on extinguishment of debt, (5) equity in earnings (loss) of unconsolidated joint ventures,

(6) provision for taxes, and (7) the impact of non-controlling interests, and (b) deduct (1) other income, (2) gain on sale of real estate (3) insurance recovery of casualty loss, and (4) gain on insurance recoveries related to casualty loss.

Pro-Rata Share

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

Same Store

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

Stabilized Properties

Newly constructed, lease-up, development and redevelopment properties are deemed stabilized upon the earlier to occur of the first full calendar quarter beginning (a) 12 months after the property is fully completed and put in service and (b) attainment of at least 90% physical occupancy.

Total Debt Service

Total debt service is the cash required to cover the repayment of interest and principal on a debt for a particular period. Total debt service is used in the calculation of the debt service coverage ratio which is used to determine the borrower's ability to make debt service payments.

Units

2025

2024

Change

2025

2024

% Change

2025

2024

% Change

Georgia

688

$ 2,605

$ 2,631

(1.0) %

$ 1,309

$ 1,400

(6.5) %

$ 1,296

$ 1,231

5.3 %

Florida

518

2,397

2,372

1.1 %

1,057

1,138

(7.1) %

1,340

1,234

8.6 %

Texas

600

2,282

2,289

(0.3) %

1,233

1,268

(2.8) %

1,049

1,021

2.7 %

Ohio

264

1,001

966

3.6 %

441

328

34.5 %

560

638

(12.2) %

Virginia

220

1,273

1,182

7.7 %

510

475

7.4 %

763

707

7.9 %

North Carolina

264

1,103

1,052

4.8 %

424

435

(2.5) %

679

617

10.0 %

South Carolina

474

2,203

2,187

0.7 %

1,143

1,179

(3.1) %

1,060

1,008

5.2 %

Tennessee

702

3,546

3,416

3.8 %

1,422

1,463

(2.8) %

2,124

1,953

8.8 %

Alabama

740

2,789

2,820

(1.1) %

1,311

1,298

1.0 %

1,478

1,522

(2.9) %

Mississippi

776

3,150

3,069

2.6 %

1,120

1,082

3.5 %

2,030

1,987

2.2 %

Missouri

174

931

950

(2.0) %

468

419

11.7 %

463

531

(12.8) %

Net deferred rent

(95)

Totals

5,420

$ 23,185

$ 22,934

1.1 %

$ 10,438

$ 10,485

(0.4)%

$ 12,747

$ 12,449

2.4 %

2025

2024

Change

2025

2024

% Change

Georgia

89.1

91.4

(2.5) %

$ 1,234

0.0 %

Florida

95.3

95.4

(0.1) %

1,482

1,460

1.5 %

Texas

92.2

92.4

(0.2) %

1,175

1,194

(1.6) %

Ohio

96.7

90.3

7.1 %

1,175

1,205

(2.5) %

Virginia

97.9

95.9

2.1 %

1,757

1,669

5.3 %

North Carolina

97.2

95.0

2.3 %

1,310

1,272

3.0 %

South Carolina

93.2

95.1

(2.0) %

1,468

1,446

1.5 %

Tennessee

94.2

91.3

3.2 %

1,657

1,627

1.8 %

Alabama

94.6

93.8

0.9 %

1,182

1,200

(1.5) %

Mississippi

93.6

94.0

(0.4) %

1,331

1,298

2.5 %

Missouri

93.0

95.8

(2.9) %

1,692

1,689

0.2 %

Weighted Average

93.7

93.3

0.4 %

$ 1,371

$ 1,359

0.9 %

See definition of Same Store under "Non-GAAP Financial Measures and Definitions"

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."

(dollars in thousands, except monthly rent amounts)

Units

2025

2024

Change

2025

2024

% Change

2025

2024

Change

Texas

1,103

$ 2,545

$ 2,598

(2.0) %

$ 1,292

$ 1,382

(6.5) %

$ 1,253

$ 1,216

3.0 %

Georgia

271

923

982

(6.0) %

477

471

1.3 %

446

511

(12.7) %

South Carolina

713

1,352

1,296

4.3 %

485

475

2.1 %

867

821

5.6 %

Alabama

200

622

584

6.5 %

298

264

12.9 %

324

320

1.3 %

Net deferred rent

0.0 %

Totals

2,287

$ 5,461

$ 5,460

0.0 %

$ 2,552

$ 2,592

(1.5)%

$ 2,909

$ 2,868

1.4 %

2025

2024

Change

2025

2024

% Change

Texas

93.2 %

91.4 %

2.0 %

$ 1,448

$ 1,514

(4.4) %

Georgia

90.5 %

94.6 %

(4.3) %

1,516

1,556

(2.6) %

South Carolina

95.0 %

94.3 %

0.7 %

1,576

1,515

4.0 %

Alabama

96.3 %

96.7 %

(0.4) %

1,228

1,129

8.8 %

Weighted Average

93.7 %

93.1 %

0.6 %

$ 1,476

$ 1,485

(0.6)%

See definition of Same Store under "Non-GAAP Financial Measures and Definitions"

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."

(dollars in thousands)

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

2025

2024

GAAP Net loss attributable to common stockholders

(2,352)

(3,171)

Less: Loan interest and other income

(487)

(105)

Add: Interest expense

5,676

5,523

General and administrative

4,070

4,152

Depreciation and amortization

6,541

6,435

Provision for taxes

Insurance recovery

(68)

Adjust for: Equity in earnings of unconsolidated joint venture properties

(413)

(228)

Add: Net income attributable to non-controlling interests

Net Operating Income

13,069

12,719

Less: Non-same store Net Operating Income

322

270

Same store Net Operating Income

$ 12,747

$ 12,449

BRT Apartments Corp. (NYSE: BRT)

(dollars in thousands)

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

2025

2024

BRT equity in earnings from joint ventures

413

228

Add: Interest expense

1,194

1,219

Depreciation

1,533

1,367

Equity in earnings of joint ventures

(90)

(18)

Net Operating Income

3,050

2,796

Less: Non-same store Net Operating Income

141

(72)

Consolidated same store Net Operating Income

12,747

12,449

Unconsolidated same store Net Operating Income

2,909

2,868

Combined same store Net Operating Income

$ 15,656

15,317

(dollars in thousands)

The condensed income statements for the unconsolidated properties below, present, for the periods indicated, a reconciliation of the information that appears in note 7 to the consolidated financial statements included in BRT's Quarterly Report on Form 10-Q for the period ended March 31, 2025 to the BRT pro-rata information presented below:

Total

BRT's Pro Rata Share

Partner Share

Revenues:

Rental and other revenue

$ 11,709

$ 5,658

$ 6,051

Total revenues

11,709

5,658

6,051

Expenses:

Real estate operating expenses

5,173

2,608

2,565

Interest expense

2,745

1,194

1,551

Depreciation

3,748

1,533

2,215

Total expenses

11,666

5,335

$ 6,331

Total revenues less total expenses

323

(280)

Other equity earnings

Net income

$ 133

413

$ (280)

Total

BRT's Pro Rata Share

Partner Share

Revenues:

Rental and other revenue

$ 10,624

$ 5,474

$ 5,150

Total revenues

10,624

5,474

5,150

Expenses:

Real estate operating expenses

5,446

2,678

2,768

Interest expense

2,778

1,219

1,559

Depreciation

2,893

1,367

1,526

Total expenses

11,117

5,264

$ 5,853

Total revenues less total expenses

(493)

210

(703)

Other equity earnings

Net income

$ (475)

$ 228

$ (703)

‌(dollars in thousands)‌

At March 31, 2025, the Company held interests in unconsolidated joint ventures that own 7 multi-family properties (the "Unconsolidated Properties") and an interest in a multi-family property that is in lease up. The condensed balance sheet below present information regarding such properties:

March 31, 2025

TOTAL

BRT's Pro Rata Share

Partner Share

ASSETS

Real estate properties, net of accumulated depreciation

$ 315,771

$ 142,572

$ 173,199

Cash and cash equivalents

5,531

2,467

3,064

Other assets

6,626

3,281

3,345

Total Assets

$ 327,928

$ 148,320

$ 179,608

LIABILITIES AND EQUITY

Liabilities:

Mortgages payable, net of deferred costs

250,358

115,331

135,027

Accounts payable and accrued liabilities

5,502

2,481

3,021

Total Liabilities

255,860

117,812

138,048

Commitments and contingencies

Equity:

Total unconsolidated joint venture equity

72,068

30,508

41,560

Total Liabilities and Equity

$ 327,928

$ 148,320

$ 179,608

Disclaimer

BRT Apartments Corp. published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 23:14 UTC.