COVER
COVER - shares | 3 Months Ended | |
Mar. 31, 2023 | May 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 | 19,179,905 | |
Amendment Flag | false | |
Entity Central Index Key | 0000014846 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Real estate properties, net of accumulated depreciation and amortization of $61,480 and $55,195 | $ 647,476 | $ 651,603 |
Investments in unconsolidated joint ventures | 41,163 | 42,576 |
Cash and cash equivalents | 15,252 | 20,281 |
Restricted cash | 830 | 872 |
Other assets | 14,980 | 16,786 |
Total Assets | 719,701 | 732,118 |
Liabilities: | ||
Mortgages payable, net of deferred costs of $4,655 and $4,166 | 423,820 | 403,792 |
Junior subordinated notes, net of deferred costs of $272 and $277 | 37,128 | 37,123 |
Credit facility, net of deferred costs of $— and $498 | 0 | 18,502 |
Accounts payable and accrued liabilities | 15,419 | 22,631 |
Total Liabilities | 476,367 | 482,048 |
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; 18,191 and 18,006 shares outstanding | 182 | 180 |
Additional paid-in capital | 276,034 | 273,863 |
Accumulated deficit | (32,900) | (23,955) |
Total BRT Apartments Corp. stockholders’ equity | 243,316 | 250,088 |
Non-controlling interest | 18 | (18) |
Total Equity | 243,334 | 250,070 |
Total Liabilities and Equity | $ 719,701 | $ 732,118 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Real estate accumulated depreciation | $ 61,480 | $ 55,195 |
Deferred costs | $ 4,927 | $ 4,941 |
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) | 18,191,000 | 18,006,000 |
Mortgages payable | ||
Debt Instrument [Line Items] | ||
Deferred costs | $ 4,655 | $ 4,166 |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Deferred costs | 272 | 277 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Deferred costs | $ 0 | $ 498 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Rental and other revenue from real estate properties | $ 22,939 | $ 11,430 |
Other income | 0 | 4 |
Total revenues | 22,939 | 11,434 |
Expenses: | ||
Real estate operating expenses - including $6 and $11 to related parties | 10,434 | 4,753 |
Interest expense | 5,483 | 2,021 |
General and administrative - including $173 and $246 to related parties | 4,055 | 3,633 |
Depreciation and amortization | 8,008 | 3,606 |
Total expenses | 27,980 | 14,013 |
Total revenues less total expenses | (5,041) | (2,579) |
Equity in earnings of unconsolidated joint ventures | 815 | 1,230 |
Equity in earnings from sale of unconsolidated joint ventures properties | 0 | 12,961 |
Gain on sale of real estate | 0 | 6 |
Gain on insurance recoveries | 240 | 0 |
(Loss) income from continuing operations | (3,986) | 11,618 |
Income tax provision | 76 | 74 |
(Loss) income from continuing operations, net of taxes | (4,062) | 11,544 |
Net income attributable to non-controlling interest | (36) | (36) |
Net (loss) income attributable to common stockholders | $ (4,098) | $ 11,508 |
Weighted average number of shares of common stock outstanding: | ||
Basic (in shares) | 18,064,301 | 17,561,802 |
Diluted (in shares) | 18,064,301 | 17,654,349 |
Per share amounts attributable to common stockholders: | ||
Basic (in dollars per share) | $ (0.21) | $ 0.62 |
Diluted (in dollars per share) | $ (0.21) | $ 0.62 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Related party - real estate operating expenses | $ 6 | $ 11 |
Related party - general and administrative | $ 173 | $ 246 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Non- Controlling Interest |
Beginning balance at Dec. 31, 2021 | $ 202,951 | $ 173 | $ 258,161 | $ (55,378) | $ (5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Distributions - common stock | (4,305) | (4,305) | |||
Restricted stock and restricted stock units vesting | 0 | 2 | (2) | ||
Compensation expense - restricted stock and restricted stock units | 974 | 974 | |||
Shares issued through equity offering program, net | 3,038 | 1 | 3,037 | ||
Net (loss) income | 11,544 | 11,508 | 36 | ||
Ending balance at Mar. 31, 2022 | 214,202 | 176 | 262,170 | (48,175) | 31 |
Beginning balance at Dec. 31, 2022 | 250,070 | 180 | 273,863 | (23,955) | (18) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Distributions - common stock | (4,847) | (4,847) | |||
Restricted stock and restricted stock units vesting | 0 | 2 | (2) | ||
Compensation expense - restricted stock and restricted stock units | 1,410 | 1,410 | |||
Shares issued through DRIP | 763 | 763 | |||
Net (loss) income | (4,062) | (4,098) | 36 | ||
Ending balance at Mar. 31, 2023 | $ 243,334 | $ 182 | $ 276,034 | $ (32,900) | $ 18 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.25 | $ 0.22 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (4,062) | $ 11,544 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 8,008 | 3,606 |
Amortization of deferred financing costs | 252 | 52 |
Amortization of debt fair value adjustment | 157 | (89) |
Amortization of restricted stock and restricted stock units | 1,410 | 974 |
Equity in earnings of unconsolidated joint ventures | (815) | (1,230) |
Equity in earnings from sale of real estate of unconsolidated joint venture properties | 0 | (12,961) |
Gain on sale of real estate | 0 | (6) |
Increases and decreases from changes in other assets and liabilities: | ||
Decrease in other assets | (2,538) | (1,071) |
Decrease (increase) in accounts payable and accrued liabilities | 528 | (350) |
Net cash provided by operating activities | 2,940 | 469 |
Cash flows from investing activities: | ||
Improvements to real estate properties | (2,158) | (802) |
Purchase of investment in joint ventures | 0 | (8,288) |
Proceeds from the sale of real estate | 0 | 4,385 |
Distributions from unconsolidated joint ventures | 2,228 | 19,796 |
Contributions to unconsolidated joint ventures | 0 | (2,122) |
Net cash provided by investing activities | 70 | 12,969 |
Cash flows from financing activities: | ||
Proceeds from mortgages payable | 21,173 | 0 |
Mortgage payoffs | 0 | (14,558) |
Mortgage principal payments | (813) | (410) |
Repayment of credit facility | (19,000) | 0 |
Increase in deferred financing costs | (683) | 0 |
Dividends paid | (9,521) | (4,198) |
Proceeds from the sale of common stock | 0 | 3,038 |
Proceeds from issuance of DRP shares | 763 | 0 |
Net cash used in financing activities | (8,081) | (16,128) |
Net decrease in cash, cash equivalents and restricted cash: | (5,071) | (2,690) |
Cash, cash equivalents and restricted cash at beginning of period | 21,153 | 38,921 |
Cash, cash equivalents and restricted cash at end of period | 16,082 | 36,231 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 5,094 | 2,021 |
Cash paid for income taxes | 8 | 1 |
Consolidation on buyout of partnership interests: | ||
Increase in real estate assets | 0 | (36,802) |
Increase in other assets | 0 | (1,784) |
Increase in mortgage payable | 0 | 27,062 |
Increase in deferred loan costs | 0 | (364) |
Increase in accounts payable and accrued liabilities | 0 | 761 |
Decrease in investment in unconsolidated joint ventures | 0 | 2,839 |
Purchase and consolidation of investment in joint venture | 0 | (8,288) |
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 | 15,252 | 29,688 |
Restricted cash | 830 | 6,543 |
Total cash, cash equivalents and restricted cash, shown in consolidated statement of cash flows | $ 16,082 | $ 36,231 |
Organization and Background
Organization and Background | 3 Months Ended |
Mar. 31, 2023 | |
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, operates and, to a lesser extent, holds interest in joint ventures that own multi-family properties. The Company conducts its operations to qualify as a real estate investment trust, or REIT, for federal income tax purposes. These multi-family properties may be wholly owned by the Company (including its consolidated subsidiaries) or by unconsolidated joint ventures in which the Company generally contributes a significant portion of the equity. At March 31, 2023, the Company: (i) wholly owns 21 multi-family properties located in eleven states with an aggregate of 5,420 units and a carrying value of $645,564,000; (ii) has interests, through unconsolidated entities, in eight multi-family properties located in four states with an aggregate of 2,781 units with a carrying value of $37,660,000; and (iii) own other assets, through consolidated and unconsolidated subsidiaries, with a carrying value of $5,415,000. These 29 multi-family properties are located in 11 states; most of the properties are located in the Southeast United States and Texas. |
Basis of Preparation
Basis of Preparation | 3 Months Ended |
Mar. 31, 2023 | |
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 months ended March 31, 2023 and 2022, are not necessarily indicative of the results for the full year. The consolidated audited balance sheet as of December 31, 2022, 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, 2022 (the "Annual Report") 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 | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Equity | Equity Equity Distribution Agreements Effective as of March 18, 2022, the Company entered into equity distribution agreements with three sales agents to sell up to $40,000,000 of its common stock from time-to-time in an at-the-market offering. During the three months ended March 31, 2023, the Company did not sell any shares. During the three months ended March 31, 2022, the Company sold 136,279 shares (at an average per share price of $22.61), for an aggregate sales price of $3,082,000, before commissions and fees of $44,000. Common Stock Dividend Distribution The Company declared a quarterly cash distribution of $0.25 per share, payable on April 4, 2023 to stockholders of record on March 27, 2023. Dividend Reinvestment Plan The Dividend Reinvestment Plan (the “DRP”) which has been in effect since July, 2022, among other things, provides stockholders with the opportunity to reinvest all or a portion of their cash dividends paid on the Company’s common stock in additional shares of its common stock, at a discount, determined in the Company’s sole discretion, of up to 5% from the market price for the common stock (as such price is calculated pursuant to the DRP). The discount from the market price is currently 3%. In the three months ended March 31, 2023, we issued 40,218 shares in lieu of cash dividends of $763,000. Stock Based Compensation In 2022, the Company's board of directors adopted, and the stockholders' approved, the 2022 Incentive Plan (the "2022 Plan"). This 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 March 31, 2023, 623,617 shares are available for issuance pursuant to awards under the 2022 Plan. Awards to acquire 789,595 shares of common stock are outstanding under the 2020 Incentive Plan and the 2018 Incentive Plan (collectively the "Prior Plans") and no further awards may be made pursuant to the Prior Plans. Restricted Stock Units In June 2022 and 2021, the Company issued restricted stock units (the "RSUs") to acquire up to 212,469 and 210,375 shares of common stock pursuant to the 2022 Plan and the 2020 Incentive Plan, respectively. Generally, the RSUs entitle the recipients, subject to continued service through the three-year vesting period 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 that would have been paid during the three-year vesting period with respect to the shares of common stock underlying the RSUs if, when, and to the extent, the related RSUs vest. The shares underlying the RSUs are not participating securities but are contingently issuable shares. Expense is recognized on the RSU's which the Company expects to vest over the applicable vesting period. For the three months ended March 31, 2023 and 2022, the Company recorded $514,000 and $250,000, respectively, of compensation expense related to the amortization of unearned compensation with respect to the RSUs issued under the 2020 and 2022 Incentive Plans. At March 31, 2023 and December 31, 2022, $3,111,000 and $4,269,000 of compensation expense, respectively, has been deferred and will be charged to expense over the remaining vesting periods. Restricted Stock In January 2023 and 2022, the Company granted 163,914 and 158,973 shares, respectively, of restricted stock pursuant to the 2022 and 2020 Plan. As of March 31, 2023 , an aggregate of 953,509 shares of unvested restricted stock are outstanding pursuant to the 2022 Plan and Prior Plans. 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 March 31, 2023 and 2022, the Company recorded $896,000 and $724,000, respectively, of compensation expense related to the amortization of unearned compensation with respect to the restricted stock awards. At March 31, 2023 and December 31, 2022, $9,976,000 and $7,728,000, 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 3.0 years. Stock Buyback On September 13, 2021, the Board of Directors approved a 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. During the three months ended March 31, 2023 and 2022, the Company did not repurchase any shares of common stock. 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 estimates as of the end of the most recent quarter. 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 March 31, 2023 2022 Numerator for basic and diluted earnings per share: Net (loss) income $ (4,062) $11,544 Deduct net income attributable to non-controlling interests (36) (36) Deduct (loss) earnings allocated to unvested restricted stock 260 (574) Net (loss) income available for common stockholders: basic and diluted $ (3,838) $ 10,934 Denominator for basic earnings per share: Weighted average number of common shares outstanding 18,064,301 17,561,802 Effect of dilutive securities: RSUs (1) — 92,547 Denominator for diluted earnings per share: Weighted average number of shares 18,064,301 17,654,349 (Loss) earnings per common share, basic $ (0.21) $ 0.62 (Loss) earnings per common share, diluted $ (0.21) $ 0.62 (1) At March 31, 2023, excludes 35,206 shares subject to RSU's as their effect would have been anti-dilutive. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases Lessor Accounting The Company owns a commercial building leased to two tenants under operating leases expiring from 2028 to 2035, with tenant options to extend 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 March 31, 2023, the remaining lease term, including the renewal option deemed exercised, is 22.5 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 March 31, 2023, the remaining lease term, including renewal options deemed exercised, is 13.8 years. As of March 31, 2023, the Company's Right of Use ("ROU") assets and lease liabilities were $2,324,000 and $2,433,000, respectively. As of December 31, 2022, the Company's ROU assets and lease liabilities were $2,371,000 and $2,472,000, 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 exercising or not exercising the option. Lease payments associated with renewal periods that the Company is reasonably certain will be exercised, if any, are included in the measurement of the corresponding lease liability and ROU asset. |
Leases | Leases Lessor Accounting The Company owns a commercial building leased to two tenants under operating leases expiring from 2028 to 2035, with tenant options to extend 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 March 31, 2023, the remaining lease term, including the renewal option deemed exercised, is 22.5 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 March 31, 2023, the remaining lease term, including renewal options deemed exercised, is 13.8 years. As of March 31, 2023, the Company's Right of Use ("ROU") assets and lease liabilities were $2,324,000 and $2,433,000, respectively. As of December 31, 2022, the Company's ROU assets and lease liabilities were $2,371,000 and $2,472,000, 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 exercising or not exercising the option. Lease payments associated with renewal periods that the Company is reasonably certain will be exercised, if any, are included in the measurement of the corresponding lease liability and ROU asset. |
Real Estate Properties
Real Estate Properties | 3 Months Ended |
Mar. 31, 2023 | |
Real Estate [Abstract] | |
Real Estate Properties | Real Estate Properties Real estate properties, consists of the following (dollars in thousands): March 31, 2023 December 31, 2022 Land $ 74,246 $ 74,246 Building 617,041 617,041 Building improvements 17,669 15,511 Real estate properties 708,956 706,798 Accumulated depreciation (61,480) (55,195) Total real estate properties, net $ 647,476 $ 651,603 A summary of real estate properties owned is as follows (dollars in thousands): December 31, 2022 Improvements Depreciation March 31, 2023 Multi-family $ 649,701 $ 2,120 $ (6,257) $ 645,564 Retail shopping center and other 1,902 38 (28) 1,912 Total real estate properties $ 651,603 $ 2,158 $ (6,285) $ 647,476 Contract to Acquire a Property On March 8, 2023, we entered into an agreement to acquire a 238-unit multifamily property constructed in 2019 and located in Richmond, VA, for a purchase price of approximately $62,500,000. The purchase price includes the assumption of approximately $32,000,000 of mortgage debt bearing an interest rate of 3.34% and maturing in 2061. The purchase is subject to the satisfaction of various conditions, including the completion, to our satisfaction, of its due diligence investigation, as well as the approval by the mortgage lender of our assumption of the mortgage debt. We anticipate that this transaction will be completed by year end 2023, although we can provide no assurance that this transaction will be completed. Property Acquisition - Prior Year |
Restricted Cash
Restricted Cash | 3 Months Ended |
Mar. 31, 2023 | |
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 | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Ventures | Investment in Unconsolidated Ventures At March 31, 2023 and December 31, 2022, the Company held interests in unconsolidated joint ventures that own eight multi-family properties (the "Unconsolidated Properties") and a property in development. The condensed balance sheets below present information regarding such properties (dollars in thousands): March 31, 2023 December 31, 2022 ASSETS Real estate properties, net of accumulated depreciation of $62,273 and $66,945 $ 282,329 $ 318,304 Cash and cash equivalents 6,909 6,591 Other assets 37,563 35,372 Real estate property held for sale 33,970 — Total Assets $ 360,771 $ 360,267 LIABILITIES AND EQUITY Liabilities: Mortgages payable, net of deferred costs of $1,367 and $1,421 $ 259,482 $ 255,261 Accounts payable and accrued liabilities 5,684 8,222 Total Liabilities 265,166 263,483 Commitments and contingencies Equity: Total unconsolidated joint venture equity 95,605 96,784 Total Liabilities and Equity $ 360,771 $ 360,267 BRT's interest in joint venture equity $ 41,163 $ 42,576 At the indicated dates, real estate properties of the unconsolidated joint ventures consist of the following (dollars in thousands): March 31, 2023 December 31, 2022 Land $ 46,331 $ 59,404 Building 291,473 315,400 Building improvements 6,798 10,445 Real estate properties 344,602 385,249 Accumulated depreciation (62,273) (66,945) Total real estate properties, net $ 282,329 $ 318,304 At March 31, 2023 and December 31, 2022, the weighted average interest rate on the mortgages payable is 4.07% and 3.99%, respectively, and the weighted average remaining term to maturity is 5.8 years and 6.1 years, respectively. The condensed income statements below present information regarding the Unconsolidated Properties (dollars in thousands): Three Months Ended March 31, 2023 2022 Revenues: Rental and other revenue $ 12,132 $ 25,231 Total revenues 12,132 25,231 Expenses: Real estate operating expenses 5,675 11,169 Interest expense 2,455 6,026 Depreciation 2,707 6,636 Total expenses 10,837 23,831 Total revenues less total expenses 1,295 1,400 Other equity earnings 113 55 Gain on insurance recoveries 65 515 Gain on sale of real estate — 23,652 Loss on extinguishment of debt — (30) Net income from joint ventures $ 1,473 $ 25,592 BRT's equity in earnings and equity in earnings from sale of unconsolidated joint venture properties $ 815 $ 14,191 Contract to sell property On March 13, 2023, the unconsolidated joint venture that owns Chatham Court and Reflections, a 494 unit multi-family property located in Dallas and in which the Company has a 50% interest entered into a contract to sell the property. The contract sales price is $73,000,000 and the Company estimates that its share of the (i) gain will be approximately $14,600,000 and (ii) early extinguishment of debt charge will be approximately $167,000. This property is reflected as held for sale at March 31, 2023. The Company anticipates that this sale will be completed in the quarter ending June 30, 2023. |
Debt Obligations
Debt Obligations | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Debt obligations consist of the following (dollars in thousands): March 31, 2023 December 31, 2022 Mortgages payable $ 428,475 $ 407,958 Junior subordinated notes 37,400 37,400 Credit facility — 19,000 Deferred financing costs (4,927) (4,941) Total debt obligations, net of deferred costs $ 460,948 $ 459,417 Mortgages Payable At March 31, 2023, the weighted average interest rate on the Company's mortgages payable was 4.02% and the weighted average remaining term to maturity is 7.8 years. For the three months ended March 31, 2023 and 2022, interest expense, which includes amortization of deferred financing costs, was $4,546,000 and $1,763,000, respectively. On February 24, 2023, we obtained mortgage debt of $21,173,000 on our Silvana Oaks- North Charleston, SC multi-family property, such mortgage debt matures in March 2033, bears an interest rate of 4.55% and is interest only for the term of the mortgage. Credit Facility The Company's amended credit facility with an affiliate of Valley National Bank ("VNB"), allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $60,000,000. The facility can be used to facilitate the acquisition of multi-family properties, repay mortgage debt secured by multi-family properties and for operating expenses (i.e.,working capital (including dividend payments)); provided that no more than $25,000,000 may be used for operating expenses. The facility is secured by the cash available at VNB and the Company's pledge of the interests in the entities that own the properties. The interest rate in effect as of March 31, 2023 is 8.00%. There is an unused facility fee of 0.25% per annum. At March 31, 2023, the Company is in compliance in all material respects with its obligations under the facility. At March 31, 2023, there was no outstanding balance on the facility and at December 31, 2022 the outstanding balance was $19,000,000. At March 31, 2023 and December 31, 2022, $60,000,000 and $41,000,000, respectively, was available to be borrowed. At May 1, 2023, there was no outstanding balance on the facility and $60,000,000 available to be borrowed. Interest expense for the three months ended March 31, 2023 and 2022, which includes amortization of deferred financing costs and unused fees, was $300,000 and $45,000, respectively. Deferred financing costs of $445,000 and $498,000, are recorded in on the Consolidated balance sheets at March 31, 2023 and December 31, 2022, respectively. Junior Subordinated Notes At March 31, 2023 and December 31, 2022, the outstanding principal balance of the Company's junior subordinated notes was $37,400,000, before deferred financing costs of $272,000 and $277,000, respectively. The interest rate on the outstanding balance resets quarterly and is based on three months LIBOR + 2.00%. The rate in effect at March 31, 2023 and 2022 was 6.80% and 2.30%, respectively. The notes mature April 30, 2036. The interest rate that will be in effect for the three months ending July 31, 2023 is 7.30%. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThe 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 March 31, 2023 and 2022 were $385,000 and $367,000, respectively. 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 $6,000 and $11,000 for the three months ended March 31, 2023 and 2022, respectively. Pursuant to a shared services agreement between the Company and several affiliated entities, including Gould Investors |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company estimates the fair value of financial assets and liabilities based on the framework established in fair value accounting guidance. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The hierarchy described below prioritizes inputs to the valuation techniques used in measuring the fair value of assets and liabilities. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs to be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows: • Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets and liabilities in active markets • Level 2— inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3— inputs to the valuation methodology are unobservable and significant to fair value. 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 March 31, 2023 and December 31, 2022, the estimated fair value of the notes is lower than their carrying value by approximately $4,487,000 and $4,695,000, respectively, based on a market interest rate of 8.53% and 7.91%, respectively. Mortgages payable: At March 31, 2023, the estimated fair value of the Company’s mortgages payable is lower than their carrying value by approximately $28,532,000, assuming market interest rates between 4.48% and 5.83%. At December 31, 2022, the estimated fair value of the Company's mortgages payable was greater than their carrying value by approximately $37,500,000, assuming market interest rates between 5.18% and 6.23%. Market interest rates were determined using rates which the Company believes reflects institutional lender yield requirements at the balance sheet dates. |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, the Company and/or its subsidiaries are parties to legal proceedings that arise in the ordinary course of business, and in particular, personal injury claims involving the operations of the Company's properties. Although management believes that the primary and umbrella insurance coverage maintained with respect to such properties is sufficient to cover claims for compensatory damages, many of these personal injury claims also assert claims for exemplary ( i.e punitive) damages. Generally, insurance does not cover claims for exemplary damages. The Company is one of several defendants in a wrongful death lawsuit seeking an unspecified amount in excess of $1,000,000 and an unspecified amount of exemplary damages. The Company’s primary insurance carrier is defending the claim. Although management is not able to determine the probability and/or magnitude of any potential loss, if any, management believes the Company has sufficient primary and umbrella insurance to cover the claim for compensatory damages. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsSubsequent events have been evaluated and any significant events, relative to our consolidated financial statements as of March 31, 2023, that warrant additional disclosure, have been included in the notes to the consolidated financial statements. |
Basis of Preparation (Policies)
Basis of Preparation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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 months ended March 31, 2023 and 2022, are not necessarily indicative of the results for the full year. The consolidated audited balance sheet as of December 31, 2022, 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, 2022 (the "Annual Report") 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. |
Fair Value Measurements | The Company estimates the fair value of financial assets and liabilities based on the framework established in fair value accounting guidance. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The hierarchy described below prioritizes inputs to the valuation techniques used in measuring the fair value of assets and liabilities. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs to be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows: • Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets and liabilities in active markets • Level 2— inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3— inputs to the valuation methodology are unobservable and significant to fair value. 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. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 2022 Numerator for basic and diluted earnings per share: Net (loss) income $ (4,062) $11,544 Deduct net income attributable to non-controlling interests (36) (36) Deduct (loss) earnings allocated to unvested restricted stock 260 (574) Net (loss) income available for common stockholders: basic and diluted $ (3,838) $ 10,934 Denominator for basic earnings per share: Weighted average number of common shares outstanding 18,064,301 17,561,802 Effect of dilutive securities: RSUs (1) — 92,547 Denominator for diluted earnings per share: Weighted average number of shares 18,064,301 17,654,349 (Loss) earnings per common share, basic $ (0.21) $ 0.62 (Loss) earnings per common share, diluted $ (0.21) $ 0.62 (1) At March 31, 2023, excludes 35,206 shares subject to RSU's as their effect would have been anti-dilutive. |
Real Estate Properties (Tables)
Real Estate Properties (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Real Estate [Abstract] | |
Summary of Real Estate Properties Owned | Real estate properties, consists of the following (dollars in thousands): March 31, 2023 December 31, 2022 Land $ 74,246 $ 74,246 Building 617,041 617,041 Building improvements 17,669 15,511 Real estate properties 708,956 706,798 Accumulated depreciation (61,480) (55,195) Total real estate properties, net $ 647,476 $ 651,603 A summary of real estate properties owned is as follows (dollars in thousands): December 31, 2022 Improvements Depreciation March 31, 2023 Multi-family $ 649,701 $ 2,120 $ (6,257) $ 645,564 Retail shopping center and other 1,902 38 (28) 1,912 Total real estate properties $ 651,603 $ 2,158 $ (6,285) $ 647,476 At the indicated dates, real estate properties of the unconsolidated joint ventures consist of the following (dollars in thousands): March 31, 2023 December 31, 2022 Land $ 46,331 $ 59,404 Building 291,473 315,400 Building improvements 6,798 10,445 Real estate properties 344,602 385,249 Accumulated depreciation (62,273) (66,945) Total real estate properties, net $ 282,329 $ 318,304 |
Investment in Unconsolidated _2
Investment in Unconsolidated Ventures (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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): March 31, 2023 December 31, 2022 ASSETS Real estate properties, net of accumulated depreciation of $62,273 and $66,945 $ 282,329 $ 318,304 Cash and cash equivalents 6,909 6,591 Other assets 37,563 35,372 Real estate property held for sale 33,970 — Total Assets $ 360,771 $ 360,267 LIABILITIES AND EQUITY Liabilities: Mortgages payable, net of deferred costs of $1,367 and $1,421 $ 259,482 $ 255,261 Accounts payable and accrued liabilities 5,684 8,222 Total Liabilities 265,166 263,483 Commitments and contingencies Equity: Total unconsolidated joint venture equity 95,605 96,784 Total Liabilities and Equity $ 360,771 $ 360,267 BRT's interest in joint venture equity $ 41,163 $ 42,576 The condensed income statements below present information regarding the Unconsolidated Properties (dollars in thousands): Three Months Ended March 31, 2023 2022 Revenues: Rental and other revenue $ 12,132 $ 25,231 Total revenues 12,132 25,231 Expenses: Real estate operating expenses 5,675 11,169 Interest expense 2,455 6,026 Depreciation 2,707 6,636 Total expenses 10,837 23,831 Total revenues less total expenses 1,295 1,400 Other equity earnings 113 55 Gain on insurance recoveries 65 515 Gain on sale of real estate — 23,652 Loss on extinguishment of debt — (30) Net income from joint ventures $ 1,473 $ 25,592 BRT's equity in earnings and equity in earnings from sale of unconsolidated joint venture properties $ 815 $ 14,191 |
Summary of Real Estate Properties Owned | Real estate properties, consists of the following (dollars in thousands): March 31, 2023 December 31, 2022 Land $ 74,246 $ 74,246 Building 617,041 617,041 Building improvements 17,669 15,511 Real estate properties 708,956 706,798 Accumulated depreciation (61,480) (55,195) Total real estate properties, net $ 647,476 $ 651,603 A summary of real estate properties owned is as follows (dollars in thousands): December 31, 2022 Improvements Depreciation March 31, 2023 Multi-family $ 649,701 $ 2,120 $ (6,257) $ 645,564 Retail shopping center and other 1,902 38 (28) 1,912 Total real estate properties $ 651,603 $ 2,158 $ (6,285) $ 647,476 At the indicated dates, real estate properties of the unconsolidated joint ventures consist of the following (dollars in thousands): March 31, 2023 December 31, 2022 Land $ 46,331 $ 59,404 Building 291,473 315,400 Building improvements 6,798 10,445 Real estate properties 344,602 385,249 Accumulated depreciation (62,273) (66,945) Total real estate properties, net $ 282,329 $ 318,304 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | Debt obligations consist of the following (dollars in thousands): March 31, 2023 December 31, 2022 Mortgages payable $ 428,475 $ 407,958 Junior subordinated notes 37,400 37,400 Credit facility — 19,000 Deferred financing costs (4,927) (4,941) Total debt obligations, net of deferred costs $ 460,948 $ 459,417 |
Organization and Background (De
Organization and Background (Details) $ in Thousands | Mar. 31, 2023 USD ($) property_unit state multi-familyProperty property | Dec. 31, 2022 USD ($) |
Real Estate Properties [Line Items] | ||
Number of states | state | 11 | |
Number of units | property_unit | 5,420 | |
Real estate investment property, net | $ 647,476 | $ 651,603 |
Investments in unconsolidated joint ventures | $ 41,163 | 42,576 |
Unconsolidated Joint Ventures | ||
Real Estate Properties [Line Items] | ||
Number of properties | property | 8 | |
Investments in unconsolidated joint ventures | $ 37,660 | |
Consolidated And Unconsolidated Subsidiaries | ||
Real Estate Properties [Line Items] | ||
Number of states | state | 11 | |
Real estate investments, other | $ 5,415 | |
Unconsolidated Joint Ventures | ||
Real Estate Properties [Line Items] | ||
Number of states | state | 4 | |
Number of units | property_unit | 2,781 | |
Real estate investment property, net | $ 282,329 | $ 318,304 |
Number of investments | multi-familyProperty | 8 | |
Multi-family | ||
Real Estate Properties [Line Items] | ||
Number of properties | multi-familyProperty | 21 | |
Real estate investment property, net | $ 645,564 | |
Multi-family | Consolidated And Unconsolidated Subsidiaries | ||
Real Estate Properties [Line Items] | ||
Number of properties | multi-familyProperty | 29 |
Basis of Preparation (Details)
Basis of Preparation (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Equity - Narrative (Details)
Equity - Narrative (Details) | 1 Months Ended | 3 Months Ended | |||||||
Jan. 31, 2023 shares | Jun. 30, 2022 shares | Jan. 31, 2022 shares | Jun. 30, 2021 shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) shares | Mar. 18, 2022 USD ($) agent | Oct. 01, 2021 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Dividends declared per share (in dollars per share) | $ / shares | $ 0.25 | ||||||||
Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Antidilutive securities excluded from computation (in shares) | 35,206 | ||||||||
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) | 0 | 0 | |||||||
Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation expense | $ | $ 896,000 | $ 724,000 | |||||||
Deferred unearned compensation | $ | $ 9,976,000 | $ 7,728,000 | |||||||
Remaining weighted average vesting period | 3 years | ||||||||
Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation expense | $ | $ 514,000 | $ 250,000 | |||||||
Deferred unearned compensation | $ | $ 3,111,000 | $ 4,269,000 | |||||||
Dividend Reinvestment Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Discount from the market price | 3% | ||||||||
Stock dividends (in shares) | 40,218 | ||||||||
Cash dividends replaced by stock dividends | $ | $ 763,000 | ||||||||
Dividend Reinvestment Plan | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Discount from the market price | 5% | ||||||||
Incentive Plan 2022 And Prior Plans | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares outstanding (in shares) | 953,509 | ||||||||
Incentive Plan 2022 And Prior Plans | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period for shares issued | 5 years | ||||||||
Incentive Plan 2022 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized (in shares) | 1,000,000 | ||||||||
Number of awards available for grant (in shares) | 623,617 | ||||||||
Shares outstanding (in shares) | 789,595 | ||||||||
Incentive Plan 2022 | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Issued (in shares) | 163,914 | ||||||||
Incentive Plan 2022 | Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Issued (in shares) | 212,469 | 210,375 | |||||||
Vesting period for shares issued | 3 years | ||||||||
Prior Plan | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Issued (in shares) | 158,973 | ||||||||
Private Placement | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of agents | agent | 3 | ||||||||
Amount of stock authorized to sell | $ | $ 40,000,000 | ||||||||
Shares sold in offering (in shares) | 0 | 136,279 | |||||||
Sale of stock, price per share | $ / shares | $ 22.61 | ||||||||
Aggregate sales price | $ | $ 3,082,000 | ||||||||
Payments for commissions | $ | $ 44,000 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator for basic and diluted earnings per share: | ||
Net (loss) income | $ (4,062) | $ 11,544 |
Deduct net income attributable to non-controlling interests | (36) | (36) |
Deduct (loss) earning allocated to unvested restricted stock, basic | 260 | (574) |
Deduct (loss) earning allocated to unvested restricted stock, diluted | 260 | (574) |
Net (loss) income available for common stockholders: basic | (3,838) | 10,934 |
Net (loss) income available for common stockholders: diluted | $ (3,838) | $ 10,934 |
Denominator for basic earnings per share: | ||
Weighted average number of common shares outstanding (in shares) | 18,064,301 | 17,561,802 |
Effect of dilutive securities: | ||
RSUs (in shares) | 0 | 92,547 |
Denominator for diluted earnings per share: | ||
Weighted average number shares (in shares) | 18,064,301 | 17,654,349 |
(Loss) earnings per common share, basic (in dollars per share) | $ (0.21) | $ 0.62 |
(Loss) earnings per common share, diluted (in dollars per share) | $ (0.21) | $ 0.62 |
Leases - Lessee Accounting (Det
Leases - Lessee Accounting (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) tenant renewalOption | Dec. 31, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Lessor, number of tenants | tenant | 2 | |
Right-of-use asset | $ 2,324 | $ 2,371 |
Lease liability | $ 2,433 | $ 2,472 |
Ground Lease | Yonkers, NY | ||
Lessee, Lease, Description [Line Items] | ||
Number of renewal options | renewalOption | 1 | |
Renewal term option | 21 years | |
Remaining term | 22 years 6 months | |
Corporate Office | Great Neck, NY | ||
Lessee, Lease, Description [Line Items] | ||
Renewal term option | 5 years | |
Remaining term | 13 years 9 months 18 days |
Real Estate Properties - Schedu
Real Estate Properties - Schedule of Real Estate Properties Including Properties Held For Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Real Estate [Abstract] | ||
Land | $ 74,246 | $ 74,246 |
Building | 617,041 | 617,041 |
Building improvements | 17,669 | 15,511 |
Real estate properties | 708,956 | 706,798 |
Accumulated depreciation | (61,480) | (55,195) |
Total real estate properties, net | $ 647,476 | $ 651,603 |
Real Estate Properties - Summar
Real Estate Properties - Summary of Real Estate Properties Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | ||
Real estate properties, beginning balance | $ 651,603 | |
Improvements | $ 2,158 | |
Depreciation | (6,285) | |
Real estate properties, ending balance | 647,476 | |
Multi-family | ||
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | ||
Real estate properties, beginning balance | 649,701 | |
Improvements | 2,120 | |
Depreciation | (6,257) | |
Real estate properties, ending balance | 645,564 | |
Retail shopping center and other | ||
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | ||
Real estate properties, beginning balance | $ 1,902 | |
Improvements | 38 | |
Depreciation | (28) | |
Real estate properties, ending balance | $ 1,912 |
Real Estate Properties - Narrat
Real Estate Properties - Narrative (Details) $ in Thousands | Mar. 08, 2023 USD ($) property_unit | Mar. 31, 2023 USD ($) property_unit | Dec. 31, 2022 USD ($) | Mar. 23, 2022 USD ($) |
Real Estate Properties [Line Items] | ||||
Number of units | property_unit | 5,420 | |||
Mortgages payable | ||||
Real Estate Properties [Line Items] | ||||
Mortgage debt assumed in asset acquisition | $ 428,475 | $ 407,958 | ||
Richmond, VA | ||||
Real Estate Properties [Line Items] | ||||
Number of units | property_unit | 238 | |||
Asset acquisition purchase price | $ 62,500 | |||
Richmond, VA | Mortgages payable | ||||
Real Estate Properties [Line Items] | ||||
Mortgage debt assumed in asset acquisition | $ 32,000 | |||
Interest rate | 3.34% | |||
Unconsolidated Joint Ventures | Verandas at Alamo, San Antonio, TX | Multi-family | VIE | Property Acquisition | ||||
Real Estate Properties [Line Items] | ||||
Additional interest acquired | 28.10% | |||
Purchase price | $ 8,721 | |||
Unconsolidated Joint Ventures | Verandas at Alamo, San Antonio, TX | Multi-family | VIE | Mortgages payable | Property Acquisition | ||||
Real Estate Properties [Line Items] | ||||
Interest rate | 3.64% | |||
Outstanding principal balance | $ 27,000 |
Investment in Unconsolidated _3
Investment in Unconsolidated Ventures - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 USD ($) property_unit | Mar. 31, 2023 USD ($) property_unit property | Mar. 31, 2022 USD ($) | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Number of units in real estate property | property_unit | 5,420 | |||
Gain on sale of real estate | $ 0 | $ 6 | ||
Unconsolidated Joint Ventures | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of units in real estate property | property_unit | 2,781 | |||
Gain on sale of real estate | $ 0 | 23,652 | ||
Loss on extinguishment of debt | $ 0 | $ (30) | ||
VIE | Multi-Family Property | Chatham Court And Reflections, Dallas TX | Unconsolidated Joint Ventures | Forecast | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of units in real estate property | property_unit | 494 | |||
Sales price | $ 73,000 | |||
Gain on sale of real estate | 14,600 | |||
Loss on extinguishment of debt | $ 167 | |||
Real Estate Investment, To Be Sold, Interest Owned | 50% | |||
Unconsolidated Joint Ventures | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of properties | property | 8 | |||
Weighted average interest rate percentage | 4.07% | 3.99% | ||
Weighted average remaining term to maturity | 5 years 9 months 18 days | 6 years 1 month 6 days |
Investment in Unconsolidated _4
Investment in Unconsolidated Ventures - Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||||
Real estate properties, net of accumulated depreciation of $62,273 and $66,945 | $ 647,476 | $ 651,603 | ||
Cash and cash equivalents | 15,252 | 20,281 | $ 29,688 | |
Other assets | 14,980 | 16,786 | ||
Total Assets | 719,701 | 732,118 | ||
Liabilities: | ||||
Mortgages payable, net of deferred costs of $1,367 and $1,421 | 423,820 | 403,792 | ||
Accounts payable and accrued liabilities | 15,419 | 22,631 | ||
Total Liabilities | 476,367 | 482,048 | ||
Commitments and contingencies | ||||
Equity: | ||||
Total unconsolidated joint venture equity | 243,334 | 250,070 | $ 214,202 | $ 202,951 |
Total Liabilities and Equity | 719,701 | 732,118 | ||
Deferred costs | 4,927 | 4,941 | ||
Unconsolidated Joint Ventures | ||||
ASSETS | ||||
Real estate properties, net of accumulated depreciation of $62,273 and $66,945 | 282,329 | 318,304 | ||
Cash and cash equivalents | 6,909 | 6,591 | ||
Other assets | 37,563 | 35,372 | ||
Total Assets | 360,771 | 360,267 | ||
Liabilities: | ||||
Mortgages payable, net of deferred costs of $1,367 and $1,421 | 259,482 | 255,261 | ||
Accounts payable and accrued liabilities | 5,684 | 8,222 | ||
Total Liabilities | 265,166 | 263,483 | ||
Commitments and contingencies | ||||
Equity: | ||||
Total unconsolidated joint venture equity | 95,605 | 96,784 | ||
Total Liabilities and Equity | 360,771 | 360,267 | ||
BRT's interest in joint venture equity | 41,163 | 42,576 | ||
Unconsolidated Joint Ventures | ||||
ASSETS | ||||
Real estate property held for sale | 33,970 | 0 | ||
Equity: | ||||
Real estate properties, net of accumulated depreciation | 62,273 | 66,945 | ||
Unconsolidated Joint Ventures | Mortgages payable | ||||
Equity: | ||||
Deferred costs | $ 1,367 | $ 1,421 |
Investment in Unconsolidated _5
Investment in Unconsolidated Ventures - Summary of Real Estate Properties Owned (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Land | $ 74,246 | $ 74,246 |
Building | 617,041 | 617,041 |
Building improvements | 17,669 | 15,511 |
Real estate properties | 708,956 | 706,798 |
Accumulated depreciation | (61,480) | (55,195) |
Total real estate properties, net | 647,476 | 651,603 |
Unconsolidated Joint Ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Land | 46,331 | 59,404 |
Building | 291,473 | 315,400 |
Building improvements | 6,798 | 10,445 |
Real estate properties | 344,602 | 385,249 |
Accumulated depreciation | (62,273) | (66,945) |
Total real estate properties, net | $ 282,329 | $ 318,304 |
Investment in Unconsolidated _6
Investment in Unconsolidated Ventures - Income Statement Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Rental and other revenue | $ 22,939 | $ 11,430 |
Total revenues | 22,939 | 11,434 |
Expenses: | ||
Real estate operating expenses | 10,434 | 4,753 |
Interest expense | 5,483 | 2,021 |
Depreciation | 8,008 | 3,606 |
Total expenses | 27,980 | 14,013 |
Total revenues less total expenses | (5,041) | (2,579) |
Gain on sale of real estate | 0 | 6 |
BRT's equity in earnings and equity in earnings from sale of unconsolidated joint venture properties | (4,098) | 11,508 |
Unconsolidated Joint Ventures | ||
Revenues: | ||
Rental and other revenue | 12,132 | 25,231 |
Total revenues | 12,132 | 25,231 |
Expenses: | ||
Real estate operating expenses | 5,675 | 11,169 |
Interest expense | 2,455 | 6,026 |
Depreciation | 2,707 | 6,636 |
Total expenses | 10,837 | 23,831 |
Total revenues less total expenses | 1,295 | 1,400 |
Other equity earnings | 113 | 55 |
Gain on insurance recoveries | 65 | 515 |
Gain on sale of real estate | 0 | 23,652 |
Loss on extinguishment of debt | 0 | (30) |
Net income from joint ventures | 1,473 | 25,592 |
BRT's equity in earnings and equity in earnings from sale of unconsolidated joint venture properties | $ 815 | $ 14,191 |
Debt Obligations - Summary of D
Debt Obligations - Summary of Debt Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Deferred financing costs | $ (4,927) | $ (4,941) |
Total debt obligations, net of deferred costs | 460,948 | 459,417 |
Mortgages payable | ||
Debt Instrument [Line Items] | ||
Debt, long-term and short-term debt, combined amount | 428,475 | 407,958 |
Deferred financing costs | (4,655) | (4,166) |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Debt, long-term and short-term debt, combined amount | 37,400 | 37,400 |
Deferred financing costs | (272) | (277) |
Credit facility | ||
Debt Instrument [Line Items] | ||
Debt, long-term and short-term debt, combined amount | 0 | 19,000 |
Deferred financing costs | $ 0 | $ (498) |
Debt Obligations - Mortgage Pay
Debt Obligations - Mortgage Payable (Details) - Mortgages payable - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Feb. 24, 2023 | |
Debt Instrument [Line Items] | |||
Weighted average interest rate on mortgage debt percentage | 4.02% | ||
Average maturity | 7 years 9 months 18 days | ||
Interest expense | $ 4,546 | $ 1,763 | |
Silvana Oaks- North Charleston, SC | |||
Debt Instrument [Line Items] | |||
Outstanding principal balance | $ 21,173 | ||
Interest rate | 4.55% |
Debt Obligations - Credit Facil
Debt Obligations - Credit Facility (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | May 01, 2023 | Dec. 31, 2022 | Sep. 15, 2022 | |
Debt Instrument [Line Items] | |||||
Facility amount drawn | $ 0 | $ 18,502,000 | |||
Deferred costs | 4,927,000 | 4,941,000 | |||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Deferred costs | $ 0 | 498,000 | |||
Secured Debt | Valley National Bank | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Facility amount drawn | 19,000,000 | ||||
Secured Debt | Valley National Bank | Line of Credit | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Facility amount drawn | $ 0 | ||||
Secured Debt | VNB Credit Facility | Valley National Bank | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 60,000,000 | ||||
Debt used for operating expenses | $ 25,000,000 | ||||
Effective interest rate | 8% | ||||
Unused borrowing capacity fee, percentage | 0.25% | ||||
Facility amount drawn | $ 0 | ||||
Remaining borrowing capacity | 60,000,000 | 41,000,000 | |||
Interest expense | 300,000 | $ 45,000 | |||
Deferred costs | $ 445,000 | $ 498,000 | |||
Secured Debt | VNB Credit Facility | Valley National Bank | Line of Credit | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | $ 60,000,000 |
Debt Obligations - Junior Subor
Debt Obligations - Junior Subordinated Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Jul. 31, 2023 | Dec. 31, 2022 | |
Debt Obligations | ||||
Deferred costs | $ 4,927 | $ 4,941 | ||
Junior subordinated notes | ||||
Debt Obligations | ||||
Outstanding principal balance | 37,400 | 37,400 | ||
Deferred costs | $ 272 | $ 277 | ||
Effective interest rate | 6.80% | 2.30% | ||
Interest expense | $ 637 | $ 212 | ||
Junior subordinated notes | Forecast | ||||
Debt Obligations | ||||
Effective interest rate | 7.30% | |||
Junior subordinated notes | London Interbank Offered Rate (LIBOR) | ||||
Debt Obligations | ||||
Basis spread on variable rate | 2% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Related party - general and administrative | $ 173 | $ 246 |
Director | Advisory services | ||
Related Party Transaction [Line Items] | ||
Related party expense | 385 | 367 |
Majestic Property Management Corporation | Real Property Management Real Estate Brokerage And Construction Supervision Services | ||
Related Party Transaction [Line Items] | ||
Related party expense | 6 | 11 |
Gould Investors Limited Partnership | Shared Services Agreement | ||
Related Party Transaction [Line Items] | ||
Related party - general and administrative | $ 172 | $ 246 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Level 2 - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Junior subordinated notes | Market Approach Valuation Technique | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate percentage | 8.53% | 7.91% |
Junior subordinated notes | Carrying value | ||
Financial Instruments Not Measured at Fair Value | ||
Estimated fair value (lower) higher than carrying value | $ 4,487 | $ 4,695 |
Mortgages payable | Market Approach Valuation Technique | Minimum | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate percentage | 4.48% | 5.18% |
Mortgages payable | Market Approach Valuation Technique | Maximum | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate percentage | 5.83% | 6.23% |
Mortgages payable | Carrying value | ||
Financial Instruments Not Measured at Fair Value | ||
Estimated fair value (lower) higher than carrying value | $ 28,532 | $ 37,500 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Insurance Claims, Wrongful Death | Company's Insurance Carrier | |
Loss Contingencies [Line Items] | |
Loss contingency, damages sought | $ 1,000 |