COVER PAGE
COVER PAGE - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 01, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-07172 | |
Entity Registrant Name | BRT APARTMENTS CORP. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 13-2755856 | |
Entity Address, Address Line One | 60 Cutter Mill Road | |
Entity Address, City or Town | Great Neck | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11021 | |
City Area Code | 516 | |
Local Phone Number | 466-3100 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | BRT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 18,236,367 | |
Amendment Flag | false | |
Entity Central Index Key | 0000014846 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Real estate properties, net of accumulated depreciation and amortization of $33,980 and $30,837 | $ 224,620 | $ 160,192 |
Investments in unconsolidated joint ventures | 128,478 | 169,474 |
Cash and cash equivalents | 29,598 | 19,885 |
Restricted cash | 7,560 | 8,800 |
Other assets | 7,792 | 7,390 |
Total Assets | 398,048 | 365,741 |
Liabilities: | ||
Mortgages payable, net of deferred costs of $485 and $563 | 134,193 | 130,434 |
Junior subordinated notes, net of deferred costs of $302 and $317 | 37,098 | 37,083 |
Accounts payable and accrued liabilities | 20,464 | 20,536 |
Total Liabilities | 191,755 | 188,053 |
Commitments and contingencies | ||
BRT Apartments Corp. stockholders' equity: | ||
Preferred shares $0.01 par value 2,000 shares authorized, none outstanding | 0 | 0 |
Common stock,$0.01 par value, 300,000 shares authorized; 17,289 and 16,432 shares outstanding | 173 | 164 |
Additional paid-in capital | 255,960 | 245,605 |
Accumulated other comprehensive loss | 0 | (19) |
Accumulated deficit | (49,861) | (67,978) |
Total BRT Apartments Corp. stockholders’ equity | 206,272 | 177,772 |
Non-controlling interests | 21 | (84) |
Total Equity | 206,293 | 177,688 |
Total Liabilities and Equity | $ 398,048 | $ 365,741 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Real estate accumulated depreciation | $ 33,980 | $ 30,837 |
Deferred mortgage costs | $ 787 | $ 880 |
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares, authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred shares, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, outstanding (in shares) | 17,289,000 | 16,432,000 |
Mortgages payable | ||
Debt Instrument [Line Items] | ||
Deferred mortgage costs | $ 485 | $ 563 |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Deferred mortgage costs | $ 302 | $ 317 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | ||||
Rental and other revenue from real estate properties | $ 7,709 | $ 7,020 | $ 21,762 | $ 20,422 |
Other income | 5 | 293 | 12 | 631 |
Total revenues | 7,714 | 7,313 | 21,774 | 21,053 |
Expenses: | ||||
Real estate operating expenses - including $8 and $8 to related parties for the three months ended and $23 and $24 for the nine months ended | 3,404 | 3,289 | 9,687 | 9,351 |
Interest expense | 1,535 | 1,731 | 4,804 | 5,400 |
General and administrative - including $172 and $167 to related parties for the three months ended and $523 and $631 for the nine months ended | 3,114 | 2,730 | 9,382 | 9,054 |
Impairment charge | 0 | 3,642 | 520 | 3,642 |
Depreciation | 1,787 | 1,777 | 4,740 | 5,147 |
Total expenses | 9,840 | 13,169 | 29,133 | 32,594 |
Total revenues less total expenses | (2,126) | (5,856) | (7,359) | (11,541) |
Equity in loss of unconsolidated joint ventures | (4,196) | (1,529) | (6,033) | (4,731) |
Equity in earnings from sale of unconsolidated joint ventures properties | 34,982 | 0 | 34,982 | 0 |
Gain on sale of real estate | 414 | 0 | 7,693 | 0 |
Gain on sale of partnership interest | 0 | 0 | 2,244 | 0 |
Loss on extinguishment of debt | (902) | 0 | (902) | 0 |
Income (loss) from continuing operations | 28,172 | (7,385) | 30,625 | (16,272) |
Income tax provision | 31 | 65 | 155 | 192 |
Net income (loss) from continuing operations, net of taxes | 28,141 | (7,450) | 30,470 | (16,464) |
Net income attributable to non-controlling interests | (35) | (34) | (102) | (97) |
Net income (loss) attributable to common stockholders | $ 28,106 | $ (7,484) | $ 30,368 | $ (16,561) |
Weighted average number of shares of common stock outstanding: | ||||
Basic (in shares) | 17,261,520 | 17,176,401 | 16,916,623 | 17,095,315 |
Diluted (in shares) | 17,292,988 | 17,176,401 | 16,992,974 | 17,095,315 |
Per share amounts attributable to common stockholders: | ||||
Basic (in dollars per share) | $ 1.55 | $ (0.44) | $ 1.71 | $ (0.97) |
Diluted (in dollars per share) | $ 1.54 | $ (0.44) | $ 1.70 | $ (0.97) |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Related party - real estate operating expenses | $ 8 | $ 8 | $ 23 | $ 24 |
Related party - general and administrative | $ 172 | $ 167 | $ 523 | $ 631 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 28,141 | $ (7,450) | $ 30,470 | $ (16,464) |
Other comprehensive income (loss): | ||||
Unrealized income (loss) on derivative instruments | 12 | 5 | 22 | (17) |
Other comprehensive income (loss) | 12 | 5 | 22 | (17) |
Comprehensive income (loss) | 28,153 | (7,445) | 30,492 | (16,481) |
Comprehensive (income) attributable to non-controlling interests | (37) | (36) | (106) | (95) |
Comprehensive income (loss) attributable to common stockholders | $ 28,116 | $ (7,481) | $ 30,386 | $ (16,576) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) income | Accumulated Deficit | Non- Controlling Interest |
Beginning balance at Dec. 31, 2019 | $ 199,560 | $ 156 | $ 232,331 | $ (10) | $ (32,824) | $ (93) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Distributions - Common Stock | (3,822) | (3,822) | ||||
Restricted stock and restricted stock units vesting | 0 | 1 | (1) | |||
Compensation expense - restricted stock and restricted stock units | 438 | 438 | ||||
Distributions to non-controlling interests | (89) | (89) | ||||
Shares issued through equity offering program, net | 12,077 | 7 | 12,070 | |||
Shares repurchased | (616) | (616) | ||||
Net (loss) income | (4,799) | (4,831) | 32 | |||
Other comprehensive income (loss) | (23) | (20) | (3) | |||
Comprehensive income (loss) | (4,822) | |||||
Ending balance at Mar. 31, 2020 | 202,726 | 164 | 244,222 | (30) | (41,477) | (153) |
Beginning balance at Dec. 31, 2019 | 199,560 | 156 | 232,331 | (10) | (32,824) | (93) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (16,464) | |||||
Other comprehensive income (loss) | (17) | |||||
Comprehensive income (loss) | (16,481) | |||||
Ending balance at Sep. 30, 2020 | 184,343 | 164 | 245,144 | (24) | (60,853) | (88) |
Beginning balance at Mar. 31, 2020 | 202,726 | 164 | 244,222 | (30) | (41,477) | (153) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Distributions - Common Stock | (3,822) | (3,822) | ||||
Compensation expense - restricted stock and restricted stock units | 461 | 461 | ||||
Net (loss) income | (4,215) | (4,246) | 31 | |||
Other comprehensive income (loss) | 1 | 2 | (1) | |||
Comprehensive income (loss) | (4,214) | |||||
Ending balance at Jun. 30, 2020 | 195,151 | 164 | 244,683 | (28) | (49,545) | (123) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Distributions - Common Stock | (3,824) | (3,824) | ||||
Compensation expense - restricted stock and restricted stock units | 461 | 461 | ||||
Net (loss) income | (7,450) | (7,484) | 34 | |||
Other comprehensive income (loss) | 5 | 4 | 1 | |||
Comprehensive income (loss) | (7,445) | |||||
Ending balance at Sep. 30, 2020 | 184,343 | 164 | 245,144 | (24) | (60,853) | (88) |
Beginning balance at Dec. 31, 2020 | 177,688 | 164 | 245,605 | (19) | (67,978) | (84) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Distributions - Common Stock | (4,011) | (4,011) | ||||
Restricted stock and restricted stock units vesting | 0 | 4 | (4) | |||
Compensation expense - restricted stock and restricted stock units | 538 | 538 | ||||
Net (loss) income | (3,731) | (3,765) | 34 | |||
Other comprehensive income (loss) | 5 | 4 | 1 | |||
Comprehensive income (loss) | (3,726) | |||||
Ending balance at Mar. 31, 2021 | 170,489 | 168 | 246,139 | (15) | (75,754) | (49) |
Beginning balance at Dec. 31, 2020 | 177,688 | 164 | 245,605 | (19) | (67,978) | (84) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 30,470 | |||||
Other comprehensive income (loss) | 22 | |||||
Comprehensive income (loss) | 30,492 | |||||
Ending balance at Sep. 30, 2021 | 206,293 | 173 | 255,960 | 0 | (49,861) | 21 |
Beginning balance at Mar. 31, 2021 | 170,489 | 168 | 246,139 | (15) | (75,754) | (49) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Distributions - Common Stock | (4,007) | (4,007) | ||||
Compensation expense - restricted stock and restricted stock units | 569 | 569 | ||||
Shares issued through equity offering program, net | 7,349 | 4 | 7,345 | |||
Net (loss) income | 6,060 | 6,027 | 33 | |||
Other comprehensive income (loss) | 5 | 4 | 1 | |||
Comprehensive income (loss) | 6,065 | |||||
Ending balance at Jun. 30, 2021 | 180,465 | 172 | 254,053 | (11) | (73,734) | (15) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Distributions - Common Stock | (4,233) | (4,233) | ||||
Compensation expense - restricted stock and restricted stock units | 842 | 842 | ||||
Shares issued through equity offering program, net | 1,066 | 1 | 1,065 | |||
Net (loss) income | 28,141 | 28,106 | 35 | |||
Other comprehensive income (loss) | 12 | 11 | 1 | |||
Comprehensive income (loss) | 28,153 | |||||
Ending balance at Sep. 30, 2021 | $ 206,293 | $ 173 | $ 255,960 | $ 0 | $ (49,861) | $ 21 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends paid (in dollars per share) | $ 0.23 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ 28,141 | $ (7,450) | $ 30,470 | $ (16,464) |
Adjustments to reconcile net income(loss) to net cash used in operating activities: | ||||
Depreciation | 4,740 | 5,147 | ||
Amortization of deferred financing costs | 216 | 210 | ||
Amortization of restricted stock and restricted stock units | 1,949 | 1,360 | ||
Equity in loss of unconsolidated joint ventures | 4,196 | 1,529 | 6,033 | 4,731 |
Equity in earnings from sale of unconsolidated joint ventures properties | (34,982) | 0 | (34,982) | 0 |
Impairment charge | 0 | 3,642 | 520 | 3,642 |
Gain on sale of real estate | (414) | 0 | (7,693) | 0 |
Gain on sale of partnership interest | 0 | 0 | (2,244) | 0 |
Loss on extinguishment of debt | 902 | 0 | 902 | 0 |
Increases and decreases from changes in other assets and liabilities: | ||||
Decrease (increase) in other assets | 1,868 | (1,108) | ||
Decrease (increase) in accounts payable and accrued liabilities | (2,000) | 757 | ||
Net cash used in operating activities | (221) | (1,725) | ||
Cash flows from investing activities: | ||||
Collections from real estate loan | 0 | 150 | ||
Improvements to real estate properties | (794) | (694) | ||
Purchase of investment in joint venture | (22,420) | 0 | ||
Proceeds from the sale of real estate | 24,632 | 0 | ||
Proceeds from the sale of partnership interest | 7,540 | 0 | ||
Distributions from unconsolidated joint ventures | 58,312 | 10,556 | ||
Contributions to unconsolidated joint ventures | (6,031) | (13,700) | ||
Net cash provided by (used in) investing activities | 61,239 | (3,688) | ||
Cash flows from financing activities: | ||||
Mortgage payoffs | (46,963) | 0 | ||
Mortgage principal payments | (2,180) | (2,262) | ||
Proceeds from credit facility | 0 | 5,000 | ||
Repayment of credit facility | 0 | (5,000) | ||
Increase in deferred financing costs | (38) | 0 | ||
Dividends paid | (11,779) | (11,336) | ||
Distributions to non-controlling interests | 0 | (89) | ||
Proceeds from the sale of common stock | 8,415 | 12,077 | ||
Repurchase of shares of common stock | 0 | (616) | ||
Net cash used in financing activities | (52,545) | (2,226) | ||
Net increase (decrease) in cash, cash equivalents and restricted cash: | 8,473 | (7,639) | ||
Cash, cash equivalents and restricted cash at beginning of period | 28,685 | 32,418 | ||
Cash, cash equivalents and restricted cash at end of period | 37,158 | 24,779 | 37,158 | 24,779 |
Supplemental disclosure of cash flow information: | ||||
Cash paid during the period for interest | 4,591 | 5,261 | ||
Cash paid for income taxes | 174 | 297 | ||
Consolidation on buyout of partnership interest: | ||||
Increase in real estate assets | (85,301) | |||
Increase in other assets | (2,263) | |||
Increase in mortgage payable | 52,000 | |||
Increase in deferred loan costs | (178) | |||
Increase on accounts payable and accrued liabilities | 1,474 | |||
Decrease in investment in unconsolidated joint ventures | 11,848 | |||
Purchase and consolidation of investment in joint venture | (22,420) | 0 | ||
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows. | ||||
Cash and cash equivalents | 29,598 | 15,650 | 29,598 | 15,650 |
Restricted cash | 7,560 | 9,129 | 7,560 | 9,129 |
Total cash, cash equivalents and restricted cash, shown in consolidated statement of cash flows | $ 37,158 | $ 24,779 | $ 37,158 | $ 24,779 |
Organization and Background
Organization and Background | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Background | Organization and Background BRT Apartments Corp. (the "Company" or "BRT"), a Maryland corporation, owns and operates multi-family properties. The Company conducts its operations to qualify as a real estate investment trust, or REIT, for federal income tax purposes. Historically, the multi-family properties have been acquired with joint venture partners in transactions in which the Company contributes a significant portion of the equity. At September 30, 2021, the Company: (a) wholly owns eight multi-family properties located in seven states with an aggregate of 2,010 units, and a carrying value of $218,201,000; and (b) has interests, through unconsolidated entities, in 27 multi-family properties located in nine states with an aggregate of 7,444 units and the carrying value of this net equity investment is $128,478,000. BRT's equity interests in these unconsolidated entities range from 32% to 90%. Most of the Company's properties are located in the Southeast United States and Texas. The Company also owns and operates various other real estate assets. At September 30, 2021, the carrying value of the other real estate assets was $6,419,000. |
Basis of Preparation
Basis of Preparation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | Basis of Preparation The accompanying interim unaudited consolidated financial statements, reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results for such interim periods. The results of operations for the three and nine months ended September 30, 2021 and 2020, are not necessarily indicative of the results for the full year. The consolidated audited balance sheet as of December 31, 2020, has been derived from the audited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States ("GAAP"). Accordingly, these unaudited statements should be read in conjunction with the Company's audited financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2020, as amended, filed with the Securities and Exchange Commission ("SEC"). The consolidated financial statements include the accounts and operations of the Company and its wholly-owned subsidiaries. The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting. For each venture, the Company evaluated the rights provided to each party in the venture to assess the consolidation of the venture. All investments in unconsolidated joint ventures have sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support and, as a group, the holders of the equity at risk have power through voting rights to direct the activities of these ventures. As a result, none of these joint ventures are variable interest entities ("VIEs"). Additionally, as determined in accordance with GAAP, the Company does not exercise substantial operating control over these entities, and therefore the entities are not consolidated. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for their share of equity in earnings, cash contributions and distributions. The distributions to each joint venture partner are determined pursuant to the applicable operating agreement and may not be pro-rata to the percentage equity interest each partner has in the applicable venture. The joint venture that owns a property in Yonkers, New York, was determined not to be a VIE but is consolidated because the Company has controlling rights in such entity. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results could differ from those estimates. Substantially all of the Company's assets are comprised of multi- family real estate assets generally leased to tenants on a one-year basis. Therefore, the Company aggregates real estate assets for reporting purposes and operates in one reportable segment. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | Equity Equity Distribution Agreements In November 2019, the Company entered into equity distribution agreements, as amended March 31, 2021, with three sales agents to sell up to an aggregate of $30,000,000 of its common stock from time-to-time in an at-the-market offering. During the three months ended September 30, 2021, the Company sold 59,269 shares for an aggregate sales price of $1,080,000 before commissions and fees of $14,000. During the nine months ended September 30, 2021, the Company sold 469,490 shares for an aggregate sales price of $8,542,000 before commissions and fees of $126,000. During the nine months ended September 30, 2020, the Company sold 694,298 shares for an aggregate sales price of $12,293,000, before commissions and fees of $185,000 and offering related expenses of $31,000. From the commencement of this program through September 30, 2021, the Company sold 1,275,751 shares for an aggregate sales price of $22,858,000 before commissions and fees of $344,000 and offering related expenses of $56,000. Common Stock Dividend Distribution The Company declared a quarterly cash distribution of $0.23 per share, payable on October 7, 2021 to stockholders of record on September 21, 2021. Stock Based Compensation The Company's 2020 Incentive Plan (the "2020 Plan") permits the Company to grant: (i) stock options, restricted stock, restricted stock units, performance shares awards and any one or more of the foregoing, for up to a maximum of 1,000,000 shares; and (ii) cash settled dividend equivalent rights in tandem with the grant of restricted stock units and certain performance based awards. As of September 30, 2021, 473,101 shares are available for issuance pursuant to awards under the 2020 Plan. Restricted Stock Units In June 2016 and 2021, the Company issued restricted stock units (the "RSUs") to acquire up to 450,000 shares and 210,375 shares of common stock, respectively, pursuant to the 2016 Amended and Restated Incentive Plan (the "2016 Plan") and the 2020 Plan, respectively. The RSUs entitled the recipients, subject to continued service through the applicable vesting dates ( i.e.; March 31, 2021 for the 2016 grants and March 31, 2024 for the 2021 grants) to receive (i) the underlying shares if and to the extent certain performance and/or market conditions are satisfied at the vesting date, and (ii) an amount equal to the cash dividends (the "RSU Dividend Equivalent") paid from the grant date through the vesting date with respect to the shares of common stock underlying the RSUs if, when, and to the extent, the related RSU's vest. The shares underlying the RSUs are not participating securities but are contingently issuable shares. For the quarter ended June 30, 2021, it was determined that the market conditions with respect to 250,000 shares underlying RSUs issued under the 2016 Plan had been satisfied; such shares, with an aggregate market value of $4,200,000 as of the vesting date, were issued and an aggregate of $775,000 of RSU Dividend Equivalents was paid. It was also determined that the performance conditions with respect to 200,000 shares underlying RSUs under the 2016 plan had not been satisfied; the 200,000 RSUs did not vest. Expense is recognized over the applicable vesting period on the RSUs which the Company expects to vest. For the three months ended September 30, 2021 and 2020, the Company recorded $200,000 and $35,000, respectively, of compensation expense related to the amortization of unearned compensation with respect to the RSUs and for the nine months ended September 30, 2021 and 2020, the Company recorded $271,000 and $105,000, respectively, of compensation expense related to the amortization of unearned compensation with respect to the RSUs. At September 30, 2021 and December 31, 2020, $1,761,000 and $35,000 of compensation expense, respectively, has been deferred and will be charged to expense over the remaining vesting period. Restricted Stock In June 2021 and January 2021, the Company granted 160,000 and 156,774 shares, respectively, of restricted stock pursuant to the 2020 Plan. As of September 30, 2021 , an aggregate of 922,719 shares of unvested restricted stock are outstanding pursuant to the 2020 Incentive Plan, the 2018 Incentive Plan (the "2018 Plan") and the 2016 Plan. No additional awards may be granted under the 2018 Plan or the 2016 Plan. The shares of restricted stock vest five years from the date of grant and under specified circumstances, including a change in control, may vest earlier. For financial statement purposes, the restricted stock is not included in the outstanding shares shown on the consolidated balance sheets until they vest, but is included in the earnings per share computation. For the three months ended September 30, 2021 and 2020, the Company recorded $642,000 and $426,000 respectively, and for the nine months ended September 30, 2021 and 2020, the Company recorded $1,678,000 and $1,255,000, respectively, of compensation expense related to the amortization of unearned compensation with respect to the restricted stock awards. At September 30, 2021 and December 31, 2020 , $7,978,000 and $4,411,000, respectively, has been deferred as unearned compensation and will be charged to expense over the remaining vesting periods of these restricted stock awards. The weighted average remaining vesting period of these shares of restricted stock is 2.76 years. Stock Buyback On September 12, 2019, the Board of Directors approved a stock repurchase plan authorizing the Company, effective as of October 1, 2019, to repurchase up to $5,000,000 of shares of common stock through September 30, 2021. During the three and nine months ended September 30, 2021, the Company did not repurchase any shares. During the nine months ended September 30, 2020, the Company repurchased 39,093 shares of common stock at an average market price of $15.76 for an aggregate cost of $616,000. On September 13, 2021, the Board of Directors approved a new stock repurchase plan authorizing the Company, effective as of October 1, 2021, to repurchase up to $5,000,000 of shares of common stock through December 31, 2023. Per Share Data Basic earnings (loss) per share is determined by dividing net income (loss) applicable to common stockholders for the applicable period by the weighted average number of shares of common stock outstanding during such period. Net income is also allocated to the unvested restricted stock outstanding during each period, as the restricted stock is entitled to receive dividends and is therefore considered a participating security. The RSUs are excluded from the basic earnings per share calculation, as they are not participating securities. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into shares of common stock or resulted in the issuance of shares of common stock that share in the earnings of the Company. Diluted earnings per share is determined by dividing net income applicable to common stockholders for the applicable period by the weighted average number of shares of common stock deemed to be outstanding during such period. In calculating diluted earnings per share, the Company, includes only those shares underlying the RSUs that it anticipates will vest based on management's current estimates. The Company excludes any shares underlying the RSUs from such calculation if their effect would have been anti-dilutive. The following table provides a reconciliation of the numerator and denominator of earnings per share calculations ( amounts in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator for basic and diluted earnings per share: Net Income (loss) $ 28,141 $ (7,450) $ 30,470 $ (16,464) (Deduct) add net (income) loss attributable to non-controlling interests (35) (34) (102) (97) Deduct earnings (loss) allocated to unvested restricted stock (1,426) 324 (1,441) 710 Net income (loss) available for common stockholders: basic and diluted $ 26,680 $ (7,160) $ 28,927 $ (15,851) Denominator for basic earnings per share: Weighted average number of common shares outstanding 17,261,520 17,176,401 16,916,623 17,095,315 Effect of dilutive securities: RSUs (1) 31,468 — 76,351 — Denominator for diluted earnings per share: Weighted average number of shares 17,292,988 17,176,401 16,992,974 17,095,315 Earnings (loss) per common share, basic $ 1.55 $ (0.44) $ 1.71 $ (0.97) Earnings (loss) per common share, diluted $ 1.54 $ (0.44) $ 1.70 $ (0.97) ______________________ (1) For the three and nine months ended September 30, 2020, excludes the shares underlying RSU's as their effect would have been anti-dilutive. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases Lessor Accounting The Company owns a commercial building leased to two tenants under operating leases expiring from 2024 to 2028, with tenant options to extend or terminate the leases. Revenues from such leases are reported as rental income, net, and are comprised of (i) lease components, which includes fixed lease payments and (ii) non-lease components, which includes reimbursements of property level operating expenses. The Company does not separate non-lease components from the related lease components, as the timing and pattern of transfer are the same, and accounts for the combined component in accordance with ASC 842. Lessee Accounting The Company is a lessee under a ground lease in Yonkers, NY which is classified as an operating lease. The ground lease expires September 30, 2024 and provides for one 21-year renewal option. As of September 30, 2021, the remaining lease term, including the renewal option deemed exercised, is 24.0 years. The Company is a lessee under a corporate office lease in Great Neck, New York, which is classified as an operating lease. The lease expires on December 31, 2031 and provides a five-year renewal option. As of September 30, 2021, the remaining lease term, including renewal options deemed exercised, is 15.3 years. As of September 30, 2021, the Company's Right of Use ("ROU") assets and lease liabilities were $2,618,000 and $2,675,000, respectively. As of December 31, 2020, the Company's ROU assets and lease liabilities were $2,652,000 and $2,674,000, respectively. The discount rate applied to measure each ROU asset and lease liability is based on the Company’s incremental borrowing rate (“IBR”). The Company considers the general economic environment and its historical borrowing rate activity and factors in various financing and asset specific adjustments to ensure the IBR is appropriate to the intended use of the underlying lease. As the Company did not elect to apply the hindsight practical expedient, lease term assumptions determined under ASC 840 were carried forward and applied in calculating the lease liabilities recorded under ASC 842. The Company’s ground lease offers a renewal option which it assesses against relevant economic factors to determine whether it is reasonably certain of |
Leases | Leases Lessor Accounting The Company owns a commercial building leased to two tenants under operating leases expiring from 2024 to 2028, with tenant options to extend or terminate the leases. Revenues from such leases are reported as rental income, net, and are comprised of (i) lease components, which includes fixed lease payments and (ii) non-lease components, which includes reimbursements of property level operating expenses. The Company does not separate non-lease components from the related lease components, as the timing and pattern of transfer are the same, and accounts for the combined component in accordance with ASC 842. Lessee Accounting The Company is a lessee under a ground lease in Yonkers, NY which is classified as an operating lease. The ground lease expires September 30, 2024 and provides for one 21-year renewal option. As of September 30, 2021, the remaining lease term, including the renewal option deemed exercised, is 24.0 years. The Company is a lessee under a corporate office lease in Great Neck, New York, which is classified as an operating lease. The lease expires on December 31, 2031 and provides a five-year renewal option. As of September 30, 2021, the remaining lease term, including renewal options deemed exercised, is 15.3 years. As of September 30, 2021, the Company's Right of Use ("ROU") assets and lease liabilities were $2,618,000 and $2,675,000, respectively. As of December 31, 2020, the Company's ROU assets and lease liabilities were $2,652,000 and $2,674,000, respectively. The discount rate applied to measure each ROU asset and lease liability is based on the Company’s incremental borrowing rate (“IBR”). The Company considers the general economic environment and its historical borrowing rate activity and factors in various financing and asset specific adjustments to ensure the IBR is appropriate to the intended use of the underlying lease. As the Company did not elect to apply the hindsight practical expedient, lease term assumptions determined under ASC 840 were carried forward and applied in calculating the lease liabilities recorded under ASC 842. The Company’s ground lease offers a renewal option which it assesses against relevant economic factors to determine whether it is reasonably certain of |
Real Estate Properties
Real Estate Properties | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Real Estate Properties | Real Estate Properties Real estate properties consist of the following (dollars in thousands): September 30, 2021 December 31, 2020 Land $ 29,489 $ 25,585 Building 220,272 154,854 Building improvements 8,839 10,590 Real estate properties 258,600 191,029 Accumulated depreciation (33,980) (30,837) Total real estate properties, net $ 224,620 $ 160,192 A summary of real estate properties owned is as follows (dollars in thousands): December 31, 2020 Additions Capitalized Costs and Improvements Depreciation Sale of Property September 30, 2021 Multi-family $ 153,604 $ 85,301 $ 794 $ (4,657) $ (16,841) $ 218,201 Land - Daytona, FL 4,379 — — — — 4,379 Retail shopping center and other 2,209 — — (83) (86) 2,040 Total real estate properties $ 160,192 $ 85,301 $ 794 $ (4,740) $ (16,927) $ 224,620 Property Acquisition On August 18, 2021, the Company purchased its partners' interests in Bells Bluff, a previously unconsolidated joint venture. The purchase price to acquire the 41.95% interest in the venture was $27,860,000. As a result of this purchase, Bells Bluff is wholly-owned by the Company. In connection with the purchase, the $47,043,000 construction loan on the property was refinanced with 20-year fixed rate ( i.e. , 3.48% and interest only for 10 years) mortgage debt in principal amount of $52,000,000. The Company determined that with respect to this acquisition, the gross assets acquired are concentrated in a single identifiable asset. Therefore, the transaction does not meet the definition of a business and is accounted for as an asset acquisition. The Company assessed the fair value of the tangible assets of the property as of the acquisition date using an income approach utilizing a market capitalization rate of 4.75% which is a Level 3 unobservable input in the fair value hierarchy. The following table summarizes the allocation of the book value based on the proportionate share of the estimated fair value of the property on the acquisition date: Purchase Price Allocation Land $ 6,172,000 Building and Improvements 77,532,000 Acquisition related intangible assets 1,597,000 $ 85,301,000 On October 1, 2021, the Company acquired the 10% interest owned by its joint venture partners in the entity that owns Crestmont at Thornblade, a 266-unit multi-family property located in Greenville, SC. The purchase price for the interest, after giving effect to the joint venture partner's carried interest, was $1,570,000. As a result, Crestmont at Thornblade, effective as of the purchase date, is wholly-owned by the Company. Property Dispositions On May 26, 2021 the Company sold its Kendall Manor-Houston, TX property, which had a book value of $16,842,000, for $24,500,000, and recognized a gain on the sale of the property of $7,279,000. In connection with the sale, the Company paid-off the related mortgage debt of $14,260,000. On August 20, 2021, the Company sold a cooperative apartment unit in New York, NY, for a sales price of $545,000 and recognized a gain on the sale of $414,000. |
Impairment Charges
Impairment Charges | 9 Months Ended |
Sep. 30, 2021 | |
Asset Impairment Charges [Abstract] | |
Impairment Charges | Impairment Charges The Company reviews each real estate asset owned, including those held through investments in unconsolidated joint ventures, for impairment when there is an event or a change in circumstances indicating that the carrying amount may not be recoverable. The Company measures and records impairment charges, and reduces the carrying value of owned properties, when indicators of impairment are present and the expected undiscounted cash flows related to those properties are less than their carrying amounts. For its unconsolidated joint venture investments, the Company measures and records impairment losses, and reduces the carrying value of the equity investment when indicators of impairment are present and the expected discounted cash flows related to the investment is less than the carrying value. When the Company does not expect to recover its carrying value on properties held for use, the Company reduces its carrying value to fair value, and for properties held for sale, the Company reduces its carrying value to the fair value less costs to sell. When the Company does not expect to recover its carrying value on unconsolidated joint ventures that are under contract for sale, the Company, when it is determined that the sale is probable, reduces its carrying value to its fair value. |
Restricted Cash
Restricted Cash | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted CashRestricted cash represents funds held for specific purposes and are therefore not available for general corporate purposes. The restricted cash reflected on the consolidated balance sheets represents funds that are held by the Company specifically for capital improvements at certain multi-family properties owned by unconsolidated joint ventures. |
Investment in Unconsolidated Ve
Investment in Unconsolidated Ventures | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Ventures | Investment in Unconsolidated VenturesAt September 30, 2021 and December 31, 2020, the Company held interests in unconsolidated joint ventures that own 27 and 31 multi-family properties, (the "Unconsolidated Properties"), respectively. The condensed balance sheets below present information regarding such properties (dollars in thousands): September 30, 2021 December 31, 2020 ASSETS Real estate properties, net of accumulated depreciation of $144,299 and $145,600 $ 824,624 $ 1,075,178 Cash and cash equivalents 13,328 16,939 Other assets 34,415 29,392 Total Assets $ 872,367 $ 1,121,509 LIABILITIES AND EQUITY Liabilities: Mortgages payable, net of deferred costs of $3,954 and $5,537 $ 659,148 $ 829,646 Accounts payable and accrued liabilities 21,046 20,237 Total Liabilities 680,194 849,883 Commitments and contingencies Equity: Total unconsolidated joint venture equity 192,173 271,626 Total Liabilities and Equity $ 872,367 $ 1,121,509 BRT's interest in joint venture equity $ 128,478 $ 169,474 At the indicated dates, real estate properties of the unconsolidated joint ventures consist of the following (dollars in thousands): September 30, 2021 December 31, 2020 Land $ 105,480 $ 148,341 Building 827,494 1,029,739 Building improvements 35,949 42,698 Real estate properties 968,923 1,220,778 Accumulated depreciation (144,299) (145,600) Total real estate properties, net $ 824,624 $ 1,075,178 At September 30, 2021 and December 31, 2020, the weighted average interest rate on the mortgages payable is 4.03% and 3.96%, respectively, and the weighted average remaining term to maturity is 7.51 years and 7.67 years, respectively. The condensed income statement below presents information regarding the Unconsolidated Properties (dollars in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenues: Rental and other revenue $ 29,818 $ 32,341 $ 95,495 $ 94,726 Total revenues 29,818 32,341 95,495 94,726 Expenses: Real estate operating expenses 14,587 16,092 45,523 45,298 Interest expense 7,568 8,663 24,562 26,186 Depreciation 8,288 10,411 28,464 31,184 Total expenses 30,443 35,166 98,549 102,668 Total revenues less total expenses (625) (2,825) (3,054) (7,942) Other equity earnings 7 97 21 34 Impairment of assets — — (2,813) — Insurance recoveries — — 2,813 — Gain on insurance recoveries 1,246 427 1,246 765 Gain on sale of real estate 83,984 — 83,984 — Loss on extinguishment of debt (9,401) — (9,401) — Net income (loss) from joint ventures $ 75,211 $ (2,301) $ 72,796 $ (7,143) BRT's equity in loss and equity in earnings from sale of unconsolidated joint venture properties $ 30,786 $ (1,529) $ 28,949 $ (4,731) During the three and nine months ended September 30, 2021, three unconsolidated Texas joint ventures recognized an aggregate of (i) $2,813,000 of impairment charges as a result of ice storm damage and (ii) $2,813,000 of related insurance recoveries. On April 20, 2021, the Company sold its interest in the joint venture that owns Anatole Apartments, a property located in Daytona Beach, FL. The Company recognized a gain of $2,244,000 on the sale. On May 4, 2021, the Company purchased a 14.69% interest in Civic Center I and Civic Center II - Southaven, MS, from its joint venture partner, for $6,031,000. After giving effect to this purchase, the Company owns 74.69% of the equity interests in the venture that owns these properties. On July 20, 2021, the joint venture which owns The Avenue Apartments, Ocoee, FL sold the property for $107,661,000 and recognized a gain on the sale of this property of $39,668,000. As a result of the sale, the Company recorded a gain of $19,518,000. The joint venture also recognized a loss on the extinguishment of debt of $9,093,000 in connection with the payoff of the related $53,060,000 mortgage debt. The Company's share of this loss was $4,474,000. On July 28, 2021, the joint venture which owns Parc at 980, Lawrenceville, GA sold the property for $118,250,000 and recognized a gain on the sale of this property of $44,316,000. As a result of the sale, the Company recorded a gain of $15,464,000. The joint venture also recognized a loss on the extinguishment of debt of $308,000 in connection with the payoff of the related $54,447,000 mortgage debt. The Company's share of this loss was $107,000 On August 18, 2021, the Company acquired the 41.9% interest owned by its joint venture partners in the entity that owns Bells Bluff, a 402-unit multi-family property located in West Nashville, TN. The purchase price for the interest was $27,860,000. As a result of the purchase, Bells Bluff , effective as of the purchase date, is wholly-owned by, and its accounts and operations are consolidated with, the Company. In connection with the purchase, the $47,043,000 construction loan on the property was refinanced with 20-year fixed rate ( i.e ., 3.48% and interest only for 10 years) mortgage debt in the principal amount of $52,000,000. |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Debt obligations consist of the following (dollars in thousands): September 30, 2021 December 31, 2020 Mortgages payable $ 134,678 $ 130,997 Junior subordinated notes 37,400 37,400 Deferred financing costs (787) (880) Total debt obligations, net of deferred costs $ 171,291 $ 167,517 Mortgages Payable At September 30, 2021, the weighted average interest rate on the Company's mortgage payables was 3.79% and the weighted average remaining term to maturity is 11.01 years. For the three months ended September 30, 2021 and 2020, interest expense, which includes amortization of deferred financing costs, was $1,305,000 and $1,475,000, respectively. For the nine months ended September 30, 2021 and 2020, interest expense, which includes amortization of deferred financing costs, was $4,113,000 and $4,418,000, respectively. During the three and nine months ended September 30, 2021, the Company paid off mortgage debt of $31,879,000 pertaining to three first mortgage loans on three properties and three supplemental loans on two properties. In connection with the payoff, the Company recognized a loss on the extinguishment of debt of $902,000. Such debt was scheduled to mature in 2022 and bore a weighted average interest rate of 4.53%. On September 18, 2021, in connection with the buyout of its partners' interests in Bells Bluff - West Nashville, TN, the $47,043,000 construction loan on the property was refinanced with a 20-year fixed rate (i.e., 3.48% and interest only for 10 years), mortgage in the principal amount of $52,000,000. Credit Facility The Company's credit facility with an affiliate of Valley National Bank, as amended and modified from time-to-time, allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $15,000,000 to facilitate the acquisition of multi-family properties and for working capital (including dividend payments) and operating expenses. The facility is secured by the cash available in certain cash accounts maintained by the Company at Valley National Bank, matures April 2023 and bears an adjustable interest rate of 50 basis points over the prime rate, with a floor of 4.25%. The interest rate in effect as of September 30, 2021 is 4.25%. There is an unused facility fee of 0.25% per annum on the difference between the outstanding loan balance and maximum amount then available under the facility. For the three months ended September 30, 2021 and 2020, interest expense, which includes amortization of deferred financing costs and unused fees, was $18,000 and $17,000. For the nine months ended September 30, 2021 and 2020, interest expense, which includes amortization of deferred financing costs and unused fees, was $54,000 and $79,000. Deferred financing costs of $20,000 and $12,000, are recorded in other assets on the Consolidated balance sheets at September 30, 2021 and December 31, 2020, respectively. At September 30, 2021, the Company is in compliance in all material respects with its obligation under the facility. At September 30, 2021 and November 1, 2021, there was no outstanding balance on the facility. Junior Subordinated Notes At September 30, 2021 and December 31, 2020, the outstanding principal balance of the Company's junior subordinated notes was $37,400,000, before deferred financing costs of $302,000 and $317,000, respectively. The interest rate on the outstanding balance resets quarterly and is based on three months LIBOR + 2.00%. The rate in effect at September 30, 2021 and 2020 was 2.13% and 2.27%, respectively. The notes mature April 30, 2036. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has retained certain of its executive officers and Fredric H. Gould, a director, among other things, to participate in the Company's multi-family property analysis and approval process (which includes service on an investment committee), provide investment advice, and provide long-term planning and consulting with executives and employees with respect to other business matters, as required. The aggregate fees incurred for these services in each of the three months ended September 30, 2021 and 2020 were $350,000 and for each of the nine months ended September 30, 2021 and 2020 were $1,049,000. Management of certain properties owned by the Company and certain joint venture properties is provided by Majestic Property Management Corp. ("Majestic Property"), a company wholly owned by Fredric H. Gould. Certain of the Company's officers and directors are also officers and directors of Majestic Property. Majestic Property may also provide real estate brokerage and construction supervision services to these properties. These fees amounted to $9,000 and $8,000 for the three months ended September 30, 2021 and 2020, respectively, and $23,000 and $24,000 for the nine months ended September 30, 2021 and 2020, respectively. Pursuant to a shared services agreement between the Company and several affiliated entities, including Gould Investors |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial Instruments Not Carried at Fair Value The following methods and assumptions were used to estimate the fair value of each class of financial instruments that are not recorded at fair value on the consolidated balance sheets: Cash and cash equivalents, restricted cash, accounts receivable (included in other assets), accounts payable and accrued liabilities: The carrying amounts reported in the balance sheets for these instruments approximate their fair value due to the short term nature of these accounts. Junior subordinated notes: At September 30, 2021 and December 31, 2020, the estimated fair value of the notes is lower than their carrying value by approximately $8,445,000 and $8,670,000, respectively, based on a market interest rate of 4.12% and 4.22%, respectively. Mortgages payable: At September 30, 2021, the estimated fair value of the Company’s mortgages payable is lower than their carrying value by approximately $2,156,000, assuming market interest rates between 3.49% and 3.87%. At December 31, 2020, the estimated fair value of the Company's mortgages payable was greater than their carrying value by approximately $3,831,000, assuming market interest rates between 2.87% and 3.28%. Market interest rates were determined using rates which the Company believes reflects institutional lender yield requirements at the balance sheet dates. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value. Financial Instruments Carried at Fair Value The Company’s fair value measurements are based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, there is a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets, or on other “observable” market inputs, and Level 3 assets/liabilities are valued based significantly on “unobservable” market inputs. The Company does not currently own any financial instruments that are classified as Level 3. At September 30, 2021, the Company has no financial assets or liabilities measured at fair value. Set forth below is information regarding the Company’s financial assets and liabilities measured at fair value as of December 31, 2020 (dollars in thousands): Carrying and Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Level 3 Financial Liabilities: Interest rate swap $ 23 $ — $ 23 $ — Derivative financial instruments: Fair values are approximated using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivatives. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, and implied volatilities. At December 31, 2020, this derivative is included in other liabilities on the consolidated balance sheet. Although the Company has determined that the majority of the inputs used to value its derivative fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with it utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. As of December 31, 2020, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative position and determined that the credit valuation adjustments are not significant to the overall valuation of its derivative. As a result, the Company determined that its derivative valuation is classified in Level 2 of the fair value hierarchy. Non-recurring fair value measurements The Company reviews each investment in real estate and joint venture interests when events or circumstances change, indicating the carrying value of the investment may not be recoverable. In the evaluation of an investment for impairment, many factors are considered, including estimated current and expected cash flows from the asset during the projected hold period, costs necessary to extend the life of the asset, expected capitalization rates, projected stabilized net operating income, and the ability to hold or dispose of the asset in the ordinary course of business. On June 8, 2021, we entered into a contract, completion of which is subject to the satisfaction of specified conditions, including the approval of the lender, to sell our interests in OPOP Tower and OPOP Lofts to our joint venture partner for $3,000,000, which was below the asset carrying value as of June 30, 2021. As a result, we recorded an impairment charge of $520,000. As the estimate of fair value was based on a privately negotiated contract, the Company classified the fair value estimate of the asset to determine impairment in Level 2 of the fair value hierarchy. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Cash Flow Hedges of Interest Rate Risk The Company's objective in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated Other Comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. As of September 30, 2021, the Company did not have any outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk. The table below presents the fair value of the Company’s derivative financial instruments as well as its classification on the consolidated balance sheets as of the dates indicated (dollars in thousands): Derivatives as of: September 30, 2021 December 31, 2020 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Accounts payable and accrued liabilities $ — Accounts payable and accrued liabilities $ 23 The following table presents the effect of the Company’s interest rate swaps on the consolidated statements of comprehensive income (loss) for the dates indicated (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Amount of (loss) gain recognized on derivative in Other Comprehensive Income $ (1) $ — $ (1) $ (25) Amount of (loss) gain reclassified from Accumulated Other Comprehensive Income into Interest expense $ (2) $ (5) $ (12) $ 5 Total amount of Interest expense presented in the Consolidated Statements of Operations $ 1,535 $ 1,731 $ 4,804 $ 5,400 During the three and nine months ended September 30, 2021, the Company accelerated the reclassification of losses of $12,000 from other comprehensive income to earnings as a result of the hedged forecasted transactions becoming probable not to occur. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In March 2020, the Financial Accounting Standard Board issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, lease, derivatives and other contracts. This guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company has elected to apply hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which removes, modifies, and adds certain disclosure requirements related to fair value measurements in ASC Topic 820. This guidance is effective for public companies in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material effect on the consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting. This update provides specific guidance for transactions for acquiring goods and services from non-employees and specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (i) financing to the issuer or (ii) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC Topic 606, Revenue from Contracts with Customers. The Company adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material effect on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) establishing ASC Topic 326, Financial Instruments - Credit Losses (“ASC 326”), as amended by subsequent ASUs on the topic. ASU 2016-13 changes how entities will account for credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current “incurred loss” model with an “expected loss” model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the financial asset. ASU 2016-13 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2022. We are currently evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsSubsequent events have been evaluated and any significant events, relative to our consolidated financial statements as of September 30, 2021, that warrant additional disclosure, have been included in the notes to the consolidated financial statements. |
Basis of Preparation (Policies)
Basis of Preparation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | The accompanying interim unaudited consolidated financial statements, reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results for such interim periods. The results of operations for the three and nine months ended September 30, 2021 and 2020, are not necessarily indicative of the results for the full year. The consolidated audited balance sheet as of December 31, 2020, has been derived from the audited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States ("GAAP"). Accordingly, these unaudited statements should be read in conjunction with the Company's audited financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2020, as amended, filed with the Securities and Exchange Commission ("SEC"). |
Consolidated Financial Statements and Variable Interest Entities | The consolidated financial statements include the accounts and operations of the Company and its wholly-owned subsidiaries. The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting. For each venture, the Company evaluated the rights provided to each party in the venture to assess the consolidation of the venture. All investments in unconsolidated joint ventures have sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support and, as a group, the holders of the equity at risk have power through voting rights to direct the activities of these ventures. As a result, none of these joint ventures are variable interest entities ("VIEs"). Additionally, as determined in accordance with GAAP, the Company does not exercise substantial operating control over these entities, and therefore the entities are not consolidated. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for their share of equity in earnings, cash contributions and distributions. The distributions to each joint venture partner are determined pursuant to the applicable operating agreement and may not be pro-rata to the percentage equity interest each partner has in the applicable venture. |
Use of Estimates | The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results could differ from those estimates. Substantially all of the Company's assets are comprised of multi- family real estate assets generally leased to tenants on a one-year basis. Therefore, the Company aggregates real estate assets for reporting purposes and operates in one reportable segment. |
Financial Instruments Carried at Fair Value | Financial Instruments Carried at Fair Value The Company’s fair value measurements are based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, there is a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets, or on other “observable” market inputs, and Level 3 assets/liabilities are valued based significantly on “unobservable” market inputs. |
New Accounting Pronouncements | New Accounting Pronouncements In March 2020, the Financial Accounting Standard Board issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, lease, derivatives and other contracts. This guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company has elected to apply hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which removes, modifies, and adds certain disclosure requirements related to fair value measurements in ASC Topic 820. This guidance is effective for public companies in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material effect on the consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting. This update provides specific guidance for transactions for acquiring goods and services from non-employees and specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (i) financing to the issuer or (ii) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC Topic 606, Revenue from Contracts with Customers. The Company adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material effect on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) establishing ASC Topic 326, Financial Instruments - Credit Losses (“ASC 326”), as amended by subsequent ASUs on the topic. ASU 2016-13 changes how entities will account for credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current “incurred loss” model with an “expected loss” model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the financial asset. ASU 2016-13 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2022. We are currently evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Reconciliation of the Numerator and Denominator of Earnings Per Share | The following table provides a reconciliation of the numerator and denominator of earnings per share calculations ( amounts in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator for basic and diluted earnings per share: Net Income (loss) $ 28,141 $ (7,450) $ 30,470 $ (16,464) (Deduct) add net (income) loss attributable to non-controlling interests (35) (34) (102) (97) Deduct earnings (loss) allocated to unvested restricted stock (1,426) 324 (1,441) 710 Net income (loss) available for common stockholders: basic and diluted $ 26,680 $ (7,160) $ 28,927 $ (15,851) Denominator for basic earnings per share: Weighted average number of common shares outstanding 17,261,520 17,176,401 16,916,623 17,095,315 Effect of dilutive securities: RSUs (1) 31,468 — 76,351 — Denominator for diluted earnings per share: Weighted average number of shares 17,292,988 17,176,401 16,992,974 17,095,315 Earnings (loss) per common share, basic $ 1.55 $ (0.44) $ 1.71 $ (0.97) Earnings (loss) per common share, diluted $ 1.54 $ (0.44) $ 1.70 $ (0.97) ______________________ (1) For the three and nine months ended September 30, 2020, excludes the shares underlying RSU's as their effect would have been anti-dilutive. |
Real Estate Properties (Tables)
Real Estate Properties (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Summary of Real Estate Properties Owned | Real estate properties consist of the following (dollars in thousands): September 30, 2021 December 31, 2020 Land $ 29,489 $ 25,585 Building 220,272 154,854 Building improvements 8,839 10,590 Real estate properties 258,600 191,029 Accumulated depreciation (33,980) (30,837) Total real estate properties, net $ 224,620 $ 160,192 A summary of real estate properties owned is as follows (dollars in thousands): December 31, 2020 Additions Capitalized Costs and Improvements Depreciation Sale of Property September 30, 2021 Multi-family $ 153,604 $ 85,301 $ 794 $ (4,657) $ (16,841) $ 218,201 Land - Daytona, FL 4,379 — — — — 4,379 Retail shopping center and other 2,209 — — (83) (86) 2,040 Total real estate properties $ 160,192 $ 85,301 $ 794 $ (4,740) $ (16,927) $ 224,620 At the indicated dates, real estate properties of the unconsolidated joint ventures consist of the following (dollars in thousands): September 30, 2021 December 31, 2020 Land $ 105,480 $ 148,341 Building 827,494 1,029,739 Building improvements 35,949 42,698 Real estate properties 968,923 1,220,778 Accumulated depreciation (144,299) (145,600) Total real estate properties, net $ 824,624 $ 1,075,178 |
Schedule of Asset Acquisition Allocation of Book Value | The following table summarizes the allocation of the book value based on the proportionate share of the estimated fair value of the property on the acquisition date: Purchase Price Allocation Land $ 6,172,000 Building and Improvements 77,532,000 Acquisition related intangible assets 1,597,000 $ 85,301,000 |
Investment in Unconsolidated _2
Investment in Unconsolidated Ventures (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The condensed balance sheets below present information regarding such properties (dollars in thousands): September 30, 2021 December 31, 2020 ASSETS Real estate properties, net of accumulated depreciation of $144,299 and $145,600 $ 824,624 $ 1,075,178 Cash and cash equivalents 13,328 16,939 Other assets 34,415 29,392 Total Assets $ 872,367 $ 1,121,509 LIABILITIES AND EQUITY Liabilities: Mortgages payable, net of deferred costs of $3,954 and $5,537 $ 659,148 $ 829,646 Accounts payable and accrued liabilities 21,046 20,237 Total Liabilities 680,194 849,883 Commitments and contingencies Equity: Total unconsolidated joint venture equity 192,173 271,626 Total Liabilities and Equity $ 872,367 $ 1,121,509 BRT's interest in joint venture equity $ 128,478 $ 169,474 The condensed income statement below presents information regarding the Unconsolidated Properties (dollars in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Revenues: Rental and other revenue $ 29,818 $ 32,341 $ 95,495 $ 94,726 Total revenues 29,818 32,341 95,495 94,726 Expenses: Real estate operating expenses 14,587 16,092 45,523 45,298 Interest expense 7,568 8,663 24,562 26,186 Depreciation 8,288 10,411 28,464 31,184 Total expenses 30,443 35,166 98,549 102,668 Total revenues less total expenses (625) (2,825) (3,054) (7,942) Other equity earnings 7 97 21 34 Impairment of assets — — (2,813) — Insurance recoveries — — 2,813 — Gain on insurance recoveries 1,246 427 1,246 765 Gain on sale of real estate 83,984 — 83,984 — Loss on extinguishment of debt (9,401) — (9,401) — Net income (loss) from joint ventures $ 75,211 $ (2,301) $ 72,796 $ (7,143) BRT's equity in loss and equity in earnings from sale of unconsolidated joint venture properties $ 30,786 $ (1,529) $ 28,949 $ (4,731) |
Summary of Real Estate Properties Owned | Real estate properties consist of the following (dollars in thousands): September 30, 2021 December 31, 2020 Land $ 29,489 $ 25,585 Building 220,272 154,854 Building improvements 8,839 10,590 Real estate properties 258,600 191,029 Accumulated depreciation (33,980) (30,837) Total real estate properties, net $ 224,620 $ 160,192 A summary of real estate properties owned is as follows (dollars in thousands): December 31, 2020 Additions Capitalized Costs and Improvements Depreciation Sale of Property September 30, 2021 Multi-family $ 153,604 $ 85,301 $ 794 $ (4,657) $ (16,841) $ 218,201 Land - Daytona, FL 4,379 — — — — 4,379 Retail shopping center and other 2,209 — — (83) (86) 2,040 Total real estate properties $ 160,192 $ 85,301 $ 794 $ (4,740) $ (16,927) $ 224,620 At the indicated dates, real estate properties of the unconsolidated joint ventures consist of the following (dollars in thousands): September 30, 2021 December 31, 2020 Land $ 105,480 $ 148,341 Building 827,494 1,029,739 Building improvements 35,949 42,698 Real estate properties 968,923 1,220,778 Accumulated depreciation (144,299) (145,600) Total real estate properties, net $ 824,624 $ 1,075,178 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | Debt obligations consist of the following (dollars in thousands): September 30, 2021 December 31, 2020 Mortgages payable $ 134,678 $ 130,997 Junior subordinated notes 37,400 37,400 Deferred financing costs (787) (880) Total debt obligations, net of deferred costs $ 171,291 $ 167,517 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value | Set forth below is information regarding the Company’s financial assets and liabilities measured at fair value as of December 31, 2020 (dollars in thousands): Carrying and Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Level 3 Financial Liabilities: Interest rate swap $ 23 $ — $ 23 $ — |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Financial Instruments and Classification on Consolidated Balance Sheets | The table below presents the fair value of the Company’s derivative financial instruments as well as its classification on the consolidated balance sheets as of the dates indicated (dollars in thousands): Derivatives as of: September 30, 2021 December 31, 2020 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Accounts payable and accrued liabilities $ — Accounts payable and accrued liabilities $ 23 |
Schedule of Effect of Derivative Financial Instrument on Consolidated Statements of Comprehensive (Loss) Income | The following table presents the effect of the Company’s interest rate swaps on the consolidated statements of comprehensive income (loss) for the dates indicated (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Amount of (loss) gain recognized on derivative in Other Comprehensive Income $ (1) $ — $ (1) $ (25) Amount of (loss) gain reclassified from Accumulated Other Comprehensive Income into Interest expense $ (2) $ (5) $ (12) $ 5 Total amount of Interest expense presented in the Consolidated Statements of Operations $ 1,535 $ 1,731 $ 4,804 $ 5,400 |
Organization and Background (De
Organization and Background (Details) $ in Thousands | Sep. 30, 2021USD ($)property_unitmulti-familyPropertystate | Dec. 31, 2020USD ($)property_unit |
Real Estate Properties [Line Items] | ||
Number of states | state | 7 | |
Number of units | property_unit | 2,010 | |
Real estate investment property, net | $ 224,620 | $ 160,192 |
Investments in unconsolidated joint ventures | 128,478 | $ 169,474 |
Real estate investments, other | $ 6,419 | |
Unconsolidated Joint Ventures | ||
Real Estate Properties [Line Items] | ||
Number of units | property_unit | 7,444 | |
Unconsolidated Joint Ventures | ||
Real Estate Properties [Line Items] | ||
Number of properties | property_unit | 27 | 31 |
Number of states | state | 9 | |
Real estate investment property, net | $ 824,624 | $ 1,075,178 |
Number of investments | multi-familyProperty | 27 | |
Investments in unconsolidated joint ventures | $ 128,478 | |
Unconsolidated Joint Ventures | Minimum | ||
Real Estate Properties [Line Items] | ||
Equity interest percentage | 32.00% | |
Unconsolidated Joint Ventures | Maximum | ||
Real Estate Properties [Line Items] | ||
Equity interest percentage | 90.00% | |
Multi-family | ||
Real Estate Properties [Line Items] | ||
Number of properties | multi-familyProperty | 8 | |
Real estate investment property, net | $ 218,201 |
Basis of Preparation (Details)
Basis of Preparation (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Equity - Narrative (Details)
Equity - Narrative (Details) | Sep. 21, 2021$ / shares | Jun. 30, 2021USD ($)shares | Jan. 31, 2021shares | Jun. 30, 2016shares | Sep. 30, 2021USD ($)shares | Jun. 30, 2021USD ($)shares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2021USD ($)shares | Dec. 31, 2020USD ($) | Nov. 30, 2019USD ($)agent | Oct. 01, 2019USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Dividends declared per share (in dollars per share) | $ / shares | $ 0.23 | ||||||||||||
Repurchases of common stock | $ 0 | $ 616,000 | |||||||||||
New Share Repurchase Program | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Beneficial interest purchased authorized amount (up to) | $ 5,000,000 | ||||||||||||
Shares repurchased (in shares) | shares | 0 | 0 | 39,093 | ||||||||||
Average market price of shares repurchased (in dollars per share) | $ / shares | $ 15.76 | ||||||||||||
Repurchases of common stock | $ 616,000 | ||||||||||||
Restricted Stock Units (RSUs) | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of awards available for grant (in shares) | shares | 250,000 | 250,000 | |||||||||||
Market value | $ 4,200,000,000 | ||||||||||||
Dividends paid | $ 775,000 | $ 775,000 | |||||||||||
Shares not satisfied (in shares) | shares | 200,000 | 200,000 | |||||||||||
Shares forfeited (in shares) | shares | 200,000 | ||||||||||||
Compensation expense | $ 200,000 | $ 35,000 | $ 271,000 | 105,000 | |||||||||
Deferred unearned compensation | 1,761,000 | 1,761,000 | $ 1,761,000 | $ 35,000 | |||||||||
Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Compensation expense | 642,000 | $ 426,000 | 1,678,000 | $ 1,255,000 | |||||||||
Deferred unearned compensation | $ 7,978,000 | $ 7,978,000 | $ 7,978,000 | $ 4,411,000 | |||||||||
Remaining weighted average vesting period | 2 years 9 months 3 days | ||||||||||||
Incentive Plan 2020 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares authorized (in shares) | shares | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||
Number of awards available for grant (in shares) | shares | 473,101 | 473,101 | 473,101 | ||||||||||
Incentive Plan 2020 | Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Issued (in shares) | shares | 160,000 | 156,774 | |||||||||||
Shares outstanding (in shares) | shares | 922,719 | 922,719 | 922,719 | ||||||||||
Incentive Plan 2016 | Restricted Stock Units (RSUs) | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Issued (in shares) | shares | 210,375 | 450,000 | |||||||||||
Prior Plan | Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of awards available for grant (in shares) | shares | 0 | 0 | 0 | ||||||||||
Vesting period for shares issued | 5 years | ||||||||||||
Private Placement | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of agents | agent | 3 | ||||||||||||
Common stock issued in offering | $ 30,000,000 | ||||||||||||
Shares sold in offering (in shares) | shares | 59,269 | 469,490 | 694,298 | 1,275,751 | |||||||||
Aggregate sales price | $ 1,080,000 | $ 8,542,000 | $ 12,293,000 | $ 22,858,000 | |||||||||
Payments for commissions | $ 14,000 | $ 126,000 | 185,000 | 344,000 | |||||||||
Payments of offering related expenses | $ 31,000 | $ 56,000 |
Equity - Schedule of Reconcilia
Equity - Schedule of Reconciliation of the Numerator and Denominator of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator for basic and diluted earnings per share: | ||||||||
Net (loss) income | $ 28,141 | $ 6,060 | $ (3,731) | $ (7,450) | $ (4,215) | $ (4,799) | $ 30,470 | $ (16,464) |
(Deduct) add net (income) loss attributable to non-controlling interests | (35) | (34) | (102) | (97) | ||||
Deduct earning (loss) allocated to unvested restricted stock, diluted | (1,426) | 324 | (1,441) | 710 | ||||
Deduct earning (loss) allocated to unvested restricted stock, basic | (1,426) | 324 | (1,441) | 710 | ||||
Net income (loss) available for common stockholders: diluted | 26,680 | (7,160) | 28,927 | (15,851) | ||||
Net income (loss) available for common stockholders: basic | $ 26,680 | $ (7,160) | $ 28,927 | $ (15,851) | ||||
Denominator for basic earnings per share: | ||||||||
Weighted average number of common shares outstanding (in shares) | 17,261,520 | 17,176,401 | 16,916,623 | 17,095,315 | ||||
Effect of dilutive securities: | ||||||||
Restricted stock units (in shares) | 31,468 | 0 | 76,351 | 0 | ||||
Weighted average number of shares of common stock outstanding: | ||||||||
Weighted average number shares (in shares) | 17,292,988 | 17,176,401 | 16,992,974 | 17,095,315 | ||||
Earnings (loss) per common share, basic (in dollars per share) | $ 1.55 | $ (0.44) | $ 1.71 | $ (0.97) | ||||
Earnings (loss) per common share, diluted (in dollars per share) | $ 1.54 | $ (0.44) | $ 1.70 | $ (0.97) |
Leases - Lessee Accounting (Det
Leases - Lessee Accounting (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($)tenantrenewalOption | Dec. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Lessor, number of tenants | tenant | 2 | |
Right-of-use asset | $ 2,618 | $ 2,652 |
Lease liability | $ 2,675 | $ 2,674 |
Ground Lease | Yonkers, NY | ||
Lessee, Lease, Description [Line Items] | ||
Number of renewal options | renewalOption | 1 | |
Renewal term option | 21 years | |
Remaining term | 24 years | |
Corporate Office | Great Neck, NY | ||
Lessee, Lease, Description [Line Items] | ||
Renewal term option | 5 years | |
Remaining term | 15 years 3 months 18 days |
Real Estate Properties - Schedu
Real Estate Properties - Schedule of Real Estate Properties Including Properties Held For Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Real Estate [Abstract] | ||
Land | $ 29,489 | $ 25,585 |
Building | 220,272 | 154,854 |
Building improvements | 8,839 | 10,590 |
Real estate properties | 258,600 | 191,029 |
Accumulated depreciation | (33,980) | (30,837) |
Total real estate properties, net | $ 224,620 | $ 160,192 |
Real Estate Properties - Summar
Real Estate Properties - Summary of Real Estate Properties Owned (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | $ 160,192 |
Additions | 85,301 |
Capitalized Costs and Improvements | 794 |
Depreciation | (4,740) |
Sale of Property | (16,927) |
Real estate properties, ending balance | 224,620 |
Multi-family | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | 153,604 |
Additions | 85,301 |
Capitalized Costs and Improvements | 794 |
Depreciation | (4,657) |
Sale of Property | (16,841) |
Real estate properties, ending balance | 218,201 |
Land - Daytona, FL | Daytona, FL | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | 4,379 |
Additions | 0 |
Capitalized Costs and Improvements | 0 |
Depreciation | 0 |
Sale of Property | 0 |
Real estate properties, ending balance | 4,379 |
Retail shopping center and other | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | 2,209 |
Additions | 0 |
Capitalized Costs and Improvements | 0 |
Depreciation | (83) |
Sale of Property | (86) |
Real estate properties, ending balance | $ 2,040 |
Real Estate- Narrative (Details
Real Estate- Narrative (Details) | Aug. 20, 2021USD ($) | Aug. 18, 2021USD ($)property_unit | May 26, 2021USD ($) | Sep. 30, 2021USD ($)property_unit | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)property_unit | Sep. 30, 2020USD ($) | Oct. 01, 2021USD ($)property_unit | Dec. 31, 2020USD ($) |
Real Estate Properties [Line Items] | |||||||||
Number of units in real estate property | property_unit | 2,010 | 2,010 | |||||||
Sale price | $ 258,600,000 | $ 258,600,000 | $ 191,029,000 | ||||||
Real estate investment property, net | 224,620,000 | 224,620,000 | 160,192,000 | ||||||
Gain on sale of real estate | 414,000 | $ 0 | 7,693,000 | $ 0 | |||||
Level 3 | Measurement Input, Market Capitalization Rate | Valuation, Income Approach | |||||||||
Real Estate Properties [Line Items] | |||||||||
Tangible assets measurement input | 0.0475 | ||||||||
Unconsolidated Joint Ventures | |||||||||
Real Estate Properties [Line Items] | |||||||||
Sale price | 968,923,000 | 968,923,000 | 1,220,778,000 | ||||||
Real estate investment property, net | 824,624,000 | 824,624,000 | $ 1,075,178,000 | ||||||
Gain on sale of real estate | $ 83,984,000 | $ 0 | $ 83,984,000 | $ 0 | |||||
Bells Bluff, West Nashville, TN | Unconsolidated Joint Ventures | |||||||||
Real Estate Properties [Line Items] | |||||||||
Outstanding principal balance | $ 52,000,000 | ||||||||
Bells Bluff, West Nashville, TN | Unconsolidated Joint Ventures | Construction Loans | |||||||||
Real Estate Properties [Line Items] | |||||||||
Outstanding principal balance | 47,043,000 | ||||||||
Bells Bluff, West Nashville, TN | Unconsolidated Joint Ventures | Mortgages payable | |||||||||
Real Estate Properties [Line Items] | |||||||||
Outstanding principal balance | $ 52,000,000 | ||||||||
Interest rate | 3.48% | 3.48% | 3.48% | ||||||
Bells Bluff, West Nashville, TN | VIE | Unconsolidated Joint Ventures | Property Acquisition | |||||||||
Real Estate Properties [Line Items] | |||||||||
Purchase price | $ 27,860,000 | ||||||||
Bells Bluff, West Nashville, TN | VIE | Unconsolidated Joint Ventures | Property Acquisition | Mortgages payable | |||||||||
Real Estate Properties [Line Items] | |||||||||
Interest rate | 3.48% | ||||||||
Long-term debt term | 10 years | ||||||||
Bells Bluff, West Nashville, TN | Multi-family | VIE | Unconsolidated Joint Ventures | Property Acquisition | |||||||||
Real Estate Properties [Line Items] | |||||||||
Additional interest acquired | 41.95% | ||||||||
Interest rate, fixed rate term | 20 years | ||||||||
Number of units in real estate property | property_unit | 402 | ||||||||
Crestmont at Thornblade, Greenville, SC | VIE | Unconsolidated Joint Ventures | Property Acquisition | Subsequent Event | |||||||||
Real Estate Properties [Line Items] | |||||||||
Purchase price | $ 1,570,000 | ||||||||
Crestmont at Thornblade, Greenville, SC | Multi-family | VIE | Unconsolidated Joint Ventures | Property Acquisition | Subsequent Event | |||||||||
Real Estate Properties [Line Items] | |||||||||
Additional interest acquired | 10.00% | ||||||||
Number of units in real estate property | property_unit | 266 | ||||||||
Kendall Manor Houston Texas | |||||||||
Real Estate Properties [Line Items] | |||||||||
Sale price | $ 16,842,000,000 | ||||||||
Real estate investment property, net | 24,500,000,000 | ||||||||
Gain on sale of real estate | 7,279,000,000 | ||||||||
Outstanding principal balance | $ 14,260,000,000 | ||||||||
NEW YORK | Cooperative Apartments Unit | |||||||||
Real Estate Properties [Line Items] | |||||||||
Sale price | $ 545,000,000 | ||||||||
Gain on sale of real estate | $ 414,000,000 |
Real Estate Properties - Purcha
Real Estate Properties - Purchase Price Allocation (Details) - Bells Bluff Property Acquisition $ in Thousands | Aug. 18, 2021USD ($) |
Purchase Price Allocation | |
Land | $ 6,172 |
Building and Improvements | 77,532 |
Acquisition related intangible assets | 1,597 |
Total | $ 85,301 |
Impairment Charges (Details)
Impairment Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Real Estate Properties [Line Items] | ||||
Impairment charge | $ 0 | $ 3,642 | $ 520 | $ 3,642 |
Unconsolidated Joint Ventures | ||||
Real Estate Properties [Line Items] | ||||
Impairment charge | $ 0 | $ 0 | 2,813 | $ 0 |
Unconsolidated Joint Ventures | St. Louis, MO | ||||
Real Estate Properties [Line Items] | ||||
Impairment charge | $ 520 |
Investment in Unconsolidated _3
Investment in Unconsolidated Ventures - Narrative (Details) | Nov. 04, 2021USD ($)property | Aug. 18, 2021USD ($)property_unit | Jul. 28, 2021USD ($) | Jul. 20, 2021USD ($) | May 04, 2021USD ($) | Apr. 20, 2021USD ($) | Sep. 30, 2021USD ($)property_unit | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)property_unit | Sep. 30, 2020USD ($) | Dec. 31, 2020property_unit | Oct. 01, 2021USD ($)property_unit |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Impairment charge | $ 0 | $ 3,642,000 | $ 520,000 | $ 3,642,000 | ||||||||
Gain (loss) on sale of real estate | 414,000 | 0 | 7,693,000 | 0 | ||||||||
Loss on extinguishment of debt | $ 902,000 | 0 | $ 902,000 | 0 | ||||||||
Number of units | property_unit | 2,010 | 2,010 | ||||||||||
Mortgages payable | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Loss on extinguishment of debt | $ 902,000 | $ 902,000 | ||||||||||
Unconsolidated Joint Ventures | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Number of properties | property_unit | 27 | 27 | 31 | |||||||||
Weighted average interest rate percentage | 4.03% | 4.03% | 3.96% | |||||||||
Weighted average remaining term to maturity | 7 years 6 months 3 days | 7 years 8 months 1 day | ||||||||||
Impairment charge | $ 0 | 0 | $ 2,813,000 | 0 | ||||||||
Insurance recoveries | 0 | 0 | 2,813,000 | 0 | ||||||||
Gain (loss) on sale of real estate | 83,984,000 | 0 | 83,984,000 | 0 | ||||||||
Loss on extinguishment of debt | 9,401,000 | $ 0 | 9,401,000 | $ 0 | ||||||||
Unconsolidated Joint Ventures | Texas | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Impairment charge | 2,813,000,000,000 | 2,813,000,000,000 | ||||||||||
Insurance recoveries | $ 2,813,000,000,000 | 2,813,000,000,000 | ||||||||||
Unconsolidated Joint Ventures | Anatole Apartments, Daytona Beach, FL | Property Acquisition | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Gain from sale | $ 2,244,000 | |||||||||||
Unconsolidated Joint Ventures | Civic Center I and Civic Center II - Southaven, MS | Property Acquisition | VIE | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Additional interest acquired | 14.69% | |||||||||||
Purchase price | $ 6,031,000 | |||||||||||
Ownership percentage | 74.69% | |||||||||||
Unconsolidated Joint Ventures | Avenue, Ocoee, FL | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Proceeds from sale of property held-for-sale | $ 107,661,000 | |||||||||||
Gain (loss) on sale of real estate | 39,668,000 | 19,518,000 | ||||||||||
Loss on extinguishment of debt | 9,093,000 | |||||||||||
Outstanding principal balance | 53,060,000 | |||||||||||
Unconsolidated Joint Ventures | Avenue, Ocoee, FL | BRT | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Gain (loss) on sale of real estate | $ (4,474,000) | |||||||||||
Unconsolidated Joint Ventures | Lawrenceville, GA | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Proceeds from sale of property held-for-sale | $ 118,250,000 | |||||||||||
Gain (loss) on sale of real estate | 44,316,000 | $ 15,464,000 | ||||||||||
Loss on extinguishment of debt | 308,000 | |||||||||||
Outstanding principal balance | 54,447,000 | |||||||||||
Unconsolidated Joint Ventures | Lawrenceville, GA | BRT | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Gain (loss) on sale of real estate | $ (107,000) | |||||||||||
Unconsolidated Joint Ventures | Bells Bluff, West Nashville, TN | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Outstanding principal balance | $ 52,000,000 | |||||||||||
Unconsolidated Joint Ventures | Bells Bluff, West Nashville, TN | Construction Loans | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Outstanding principal balance | 47,043,000 | |||||||||||
Unconsolidated Joint Ventures | Bells Bluff, West Nashville, TN | Mortgages payable | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Outstanding principal balance | $ 52,000,000 | |||||||||||
Interest rate | 3.48% | 3.48% | 3.48% | |||||||||
Unconsolidated Joint Ventures | Bells Bluff, West Nashville, TN | Property Acquisition | VIE | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Purchase price | $ 27,860,000 | |||||||||||
Unconsolidated Joint Ventures | Bells Bluff, West Nashville, TN | Property Acquisition | VIE | Mortgages payable | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Interest rate | 3.48% | |||||||||||
Long-term debt term | 10 years | |||||||||||
Unconsolidated Joint Ventures | Bells Bluff, West Nashville, TN | Property Acquisition | VIE | Multi-family | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Additional interest acquired | 41.95% | |||||||||||
Number of units | property_unit | 402 | |||||||||||
Interest rate, fixed rate term | 20 years | |||||||||||
Unconsolidated Joint Ventures | Crestmont at Thornblade, Greenville, SC | Property Acquisition | VIE | Subsequent Event | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Purchase price | $ 1,570,000 | |||||||||||
Unconsolidated Joint Ventures | Crestmont at Thornblade, Greenville, SC | Property Acquisition | VIE | Multi-family | Subsequent Event | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Additional interest acquired | 10.00% | |||||||||||
Number of units | property_unit | 266 | |||||||||||
Unconsolidated Joint Ventures | St. Louis, MO | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Impairment charge | $ 520,000 | |||||||||||
Unconsolidated Joint Ventures | St. Louis, MO | Subsequent Event | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Proceeds from sale of property held-for-sale | $ 3,000,000 | |||||||||||
Gain (loss) on sale of real estate | $ 385,000 | |||||||||||
Number of property sold | property | 2 |
Investment in Unconsolidated _4
Investment in Unconsolidated Ventures - Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
ASSETS | |||
Real estate properties, net of accumulated depreciation of $144,299 and $145,600 | $ 224,620 | $ 160,192 | |
Cash and cash equivalents | 29,598 | 19,885 | $ 15,650 |
Other assets | 7,792 | 7,390 | |
Total Assets | 398,048 | 365,741 | |
Liabilities: | |||
Mortgages payable, net of deferred costs of $3,954 and $5,537 | 134,193 | 130,434 | |
Accounts payable and accrued liabilities | 20,464 | 20,536 | |
Total Liabilities | 191,755 | 188,053 | |
Commitments and contingencies | |||
Equity: | |||
Total unconsolidated joint venture equity | 206,272 | 177,772 | |
Total Liabilities and Equity | 398,048 | 365,741 | |
Deferred mortgage costs | 787 | 880 | |
Mortgages payable | |||
Equity: | |||
Deferred mortgage costs | 485 | 563 | |
Unconsolidated Joint Ventures | |||
ASSETS | |||
Real estate properties, net of accumulated depreciation of $144,299 and $145,600 | 824,624 | 1,075,178 | |
Cash and cash equivalents | 13,328 | 16,939 | |
Other assets | 34,415 | 29,392 | |
Total Assets | 872,367 | 1,121,509 | |
Liabilities: | |||
Mortgages payable, net of deferred costs of $3,954 and $5,537 | 659,148 | 829,646 | |
Accounts payable and accrued liabilities | 21,046 | 20,237 | |
Total Liabilities | 680,194 | 849,883 | |
Commitments and contingencies | |||
Equity: | |||
Total unconsolidated joint venture equity | 192,173 | 271,626 | |
Total Liabilities and Equity | 872,367 | 1,121,509 | |
BRT's interest in joint venture equity | 128,478 | 169,474 | |
Real estate properties, net of accumulated depreciation | 144,299 | 145,600 | |
Unconsolidated Joint Ventures | Mortgages payable | |||
Equity: | |||
Deferred mortgage costs | $ 3,954 | $ 5,537 |
Investment in Unconsolidated _5
Investment in Unconsolidated Ventures - Summary of Real Estate Properties Owned (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||
Land | $ 29,489 | $ 25,585 |
Building | 220,272 | 154,854 |
Building improvements | 8,839 | 10,590 |
Real estate properties | 258,600 | 191,029 |
Accumulated depreciation | (33,980) | (30,837) |
Total real estate properties, net | 224,620 | 160,192 |
Unconsolidated Joint Ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Land | 105,480 | 148,341 |
Building | 827,494 | 1,029,739 |
Building improvements | 35,949 | 42,698 |
Real estate properties | 968,923 | 1,220,778 |
Accumulated depreciation | (144,299) | (145,600) |
Total real estate properties, net | $ 824,624 | $ 1,075,178 |
Investment in Unconsolidated _6
Investment in Unconsolidated Ventures - Income Statement Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | ||||
Rental and other revenue | $ 7,709 | $ 7,020 | $ 21,762 | $ 20,422 |
Total revenues | 7,714 | 7,313 | 21,774 | 21,053 |
Expenses: | ||||
Real estate operating expenses | 3,404 | 3,289 | 9,687 | 9,351 |
Interest expense | 1,535 | 1,731 | 4,804 | 5,400 |
Depreciation | 1,787 | 1,777 | 4,740 | 5,147 |
Total expenses | 9,840 | 13,169 | 29,133 | 32,594 |
Total revenues less total expenses | (2,126) | (5,856) | (7,359) | (11,541) |
Impairment of assets | 0 | (3,642) | (520) | (3,642) |
Gain on sale of real estate | 414 | 0 | 7,693 | 0 |
Loss on extinguishment of debt | (902) | 0 | (902) | 0 |
Net income (loss) from joint ventures | 35 | 34 | 102 | 97 |
BRT's equity in loss and equity in earnings from sale of unconsolidated joint venture properties | 28,106 | (7,484) | 30,368 | (16,561) |
Unconsolidated Joint Ventures | ||||
Revenues: | ||||
Rental and other revenue | 29,818 | 32,341 | 95,495 | 94,726 |
Total revenues | 29,818 | 32,341 | 95,495 | 94,726 |
Expenses: | ||||
Real estate operating expenses | 14,587 | 16,092 | 45,523 | 45,298 |
Interest expense | 7,568 | 8,663 | 24,562 | 26,186 |
Depreciation | 8,288 | 10,411 | 28,464 | 31,184 |
Total expenses | 30,443 | 35,166 | 98,549 | 102,668 |
Total revenues less total expenses | (625) | (2,825) | (3,054) | (7,942) |
Other equity earnings | 7 | 97 | 21 | 34 |
Impairment of assets | 0 | 0 | (2,813) | 0 |
Insurance recoveries | 0 | 0 | 2,813 | 0 |
Gain on insurance recoveries | 1,246 | 427 | 1,246 | 765 |
Gain on sale of real estate | 83,984 | 0 | 83,984 | 0 |
Loss on extinguishment of debt | (9,401) | 0 | (9,401) | 0 |
Net income (loss) from joint ventures | 75,211 | (2,301) | 72,796 | (7,143) |
BRT's equity in loss and equity in earnings from sale of unconsolidated joint venture properties | $ 30,786 | $ (1,529) | $ 28,949 | $ (4,731) |
Debt Obligations - Summary of D
Debt Obligations - Summary of Debt Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Deferred financing costs | $ (787) | $ (880) |
Total debt obligations, net of deferred costs | 171,291 | 167,517 |
Mortgages payable | ||
Debt Instrument [Line Items] | ||
Debt, long-term and short-term debt, combined amount | 134,678 | 130,997 |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Debt, long-term and short-term debt, combined amount | $ 37,400 | $ 37,400 |
Debt Obligations - Mortgage Pay
Debt Obligations - Mortgage Payable (Details) | Aug. 18, 2021USD ($) | Sep. 30, 2021USD ($)propertyloan | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)propertyloan | Sep. 30, 2020USD ($) |
Debt Instrument [Line Items] | |||||
Mortgage payoffs | $ 46,963,000 | $ 0 | |||
Loss on extinguishment of debt | $ 902,000 | $ 0 | 902,000 | 0 | |
Unconsolidated Joint Ventures | |||||
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 9,401,000 | 0 | $ 9,401,000 | 0 | |
Unconsolidated Joint Ventures | Bells Bluff, West Nashville, TN | |||||
Debt Instrument [Line Items] | |||||
Outstanding principal balance | $ 52,000,000 | ||||
Unconsolidated Joint Ventures | Bells Bluff, West Nashville, TN | VIE | Multi-family | Property Acquisition | |||||
Debt Instrument [Line Items] | |||||
Interest rate, fixed rate term | 20 years | ||||
Mortgages payable | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate on mortgage debt percentage | 3.79% | 3.79% | |||
Average maturity | 11 years 3 days | ||||
Interest expense | $ 1,305,000 | $ 1,475,000 | $ 4,113,000 | $ 4,418,000 | |
Mortgage payoffs | 31,879,000 | 31,879,000 | |||
Loss on extinguishment of debt | $ 902,000 | $ 902,000 | |||
Mortgages payable | First Mortgage | |||||
Debt Instrument [Line Items] | |||||
Number of loans | loan | 3 | 3 | |||
Number of properties against loan | property | 3 | 3 | |||
Mortgages payable | Supplemental Loans | |||||
Debt Instrument [Line Items] | |||||
Number of loans | loan | 3 | 3 | |||
Number of properties against loan | property | 2 | 2 | |||
Mortgages payable | Mortgage Due 2022 | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate on mortgage debt percentage | 4.53% | 4.53% | |||
Mortgages payable | Unconsolidated Joint Ventures | Bells Bluff, West Nashville, TN | |||||
Debt Instrument [Line Items] | |||||
Outstanding principal balance | $ 52,000,000 | ||||
Interest rate | 3.48% | 3.48% | 3.48% | ||
Mortgages payable | Unconsolidated Joint Ventures | Bells Bluff, West Nashville, TN | VIE | Property Acquisition | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.48% | ||||
Long-term debt term | 10 years | ||||
Construction Loans | Unconsolidated Joint Ventures | Bells Bluff, West Nashville, TN | |||||
Debt Instrument [Line Items] | |||||
Outstanding principal balance | $ 47,043,000 |
Debt Obligations - Credit Facil
Debt Obligations - Credit Facility (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Nov. 01, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||||
Deferred costs | $ 787,000 | $ 787,000 | $ 880,000 | |||
Secured Debt | Credit Facility, Maturing April 2023 | Valley National Bank | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Debt assumed, face value | $ 15,000,000 | $ 15,000,000 | ||||
Effective interest rate | 4.25% | 4.25% | ||||
Unused borrowing capacity fee, percentage | 0.25% | |||||
Amortization of deferred fees and unused fees | $ 18,000 | $ 17,000 | $ 54,000 | $ 79,000 | ||
Deferred costs | 20,000 | 20,000 | $ 12,000 | |||
Facility amount drawn | $ 0 | $ 0 | ||||
Secured Debt | Credit Facility, Maturing April 2023 | Valley National Bank | Line of Credit | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Facility amount drawn | $ 0 | |||||
Secured Debt | Credit Facility, Maturing April 2023 | Valley National Bank | Line of Credit | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Secured Debt | Credit Facility, Maturing April 2023 | Valley National Bank | Line of Credit | Floor | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 4.25% |
Debt Obligations - Junior Subor
Debt Obligations - Junior Subordinated Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Debt Obligations | |||||
Deferred costs | $ 787 | $ 787 | $ 880 | ||
Junior subordinated notes | |||||
Debt Obligations | |||||
Outstanding principal balance | 37,400 | 37,400 | 37,400 | ||
Deferred costs | $ 302 | $ 302 | $ 317 | ||
Effective interest rate | 2.13% | 2.27% | 2.13% | 2.27% | |
Interest expense | $ 210 | $ 240 | $ 636 | $ 903 | |
Junior subordinated notes | London Interbank Offered Rate (LIBOR) | |||||
Debt Obligations | |||||
Basis spread on variable rate | 2.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
Related party - general and administrative | $ 172 | $ 167 | $ 523 | $ 631 |
Director | Advisory services | ||||
Related Party Transaction [Line Items] | ||||
Related party expense | 350 | 350 | 1,049 | 1,049 |
Majestic Property Management Corporation | Real Property Management Real Estate Brokerage And Construction Supervision Services | ||||
Related Party Transaction [Line Items] | ||||
Related party expense | 9 | 8 | 23 | 24 |
Gould Investors Limited Partnership | Shared Services Agreement | ||||
Related Party Transaction [Line Items] | ||||
Related party - general and administrative | $ 172 | $ 167 | $ 523 | $ 631 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | Jun. 08, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Financial Instruments Not Measured at Fair Value | |||
Financial liabilities fair value | $ 0 | ||
Financial assets fair value | 0 | ||
Real Estate Investment | |||
Financial Instruments Not Measured at Fair Value | |||
Sale of derivatives | $ 3,000,000 | ||
Impairment charge | $ 520,000 | ||
Level 2 | Market Approach Valuation Technique | Junior subordinated notes | |||
Financial Instruments Not Measured at Fair Value | |||
Market interest rate percentage | 4.12% | 4.22% | |
Level 2 | Market Approach Valuation Technique | Mortgages payable | Minimum | |||
Financial Instruments Not Measured at Fair Value | |||
Market interest rate percentage | 3.49% | 2.87% | |
Level 2 | Market Approach Valuation Technique | Mortgages payable | Maximum | |||
Financial Instruments Not Measured at Fair Value | |||
Market interest rate percentage | 3.87% | 3.28% | |
Carrying and Fair Value | Level 2 | Junior subordinated notes | |||
Financial Instruments Not Measured at Fair Value | |||
Estimated fair value (lower) higher than carrying value | $ 8,445,000 | $ 8,670,000 | |
Carrying and Fair Value | Level 2 | Mortgages payable | |||
Financial Instruments Not Measured at Fair Value | |||
Estimated fair value (lower) higher than carrying value | $ 2,156,000 | $ 3,831,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value (Details) - Interest rate swap $ in Thousands | Dec. 31, 2020USD ($) |
Level 1 | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Financial Liabilities: | $ 0 |
Level 2 | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Financial Liabilities: | 23 |
Level 3 | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Financial Liabilities: | 0 |
Carrying and Fair Value | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Financial Liabilities: | $ 23 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Effect of derivative financial instrument on the consolidated statements of comprehensive (loss) income | |||||
Amount of (loss) gain reclassified from Accumulated Other Comprehensive Income into Interest expense | $ (12) | $ (12) | |||
Interest Expense | |||||
Effect of derivative financial instrument on the consolidated statements of comprehensive (loss) income | |||||
Amount of (loss) gain recognized on derivative in Other Comprehensive Income | (1) | $ 0 | (1) | $ (25) | |
Amount of (loss) gain reclassified from Accumulated Other Comprehensive Income into Interest expense | (2) | (5) | (12) | 5 | |
Total amount of Interest expense presented in the Consolidated Statements of Operations | 1,535 | $ 1,731 | 4,804 | $ 5,400 | |
Accounts payable and accrued liabilities | |||||
Fair value of derivative financial instruments | |||||
Fair value of derivative financial instrument liability | $ 0 | $ 0 | $ 23 |