Exhibit 99.2
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SUPPLEMENTAL FINANCIAL INFORMATION FOR THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2023 |
March 12, 2024
60 Cutter Mill Rd., Great Neck, NY 11021
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
We consider some of the information set forth herein to contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Such forward-looking statements include, without limitation, statements regarding expected operating performance and results, property acquisition and disposition activity, joint venture activity, development and value add activity and other capital expenditures, and capital raising and financing activity, as well as revenue and expense growth, occupancy, interest rate and other economic expectations. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “forecasts,” “projects,” “assumes,” “will,” “may,” “could,” “should,” “budget,” “target,” “outlook,” “opportunity,” “guidance” and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases, beyond our control, which may cause our actual results, performance or achievements to be materially different from the results of operations, financial conditions or plans expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such forward-looking statements included in this report may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved and investors are cautioned not to place undue reliance on such information.
The following factors, among others, could cause our actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements:
•inability to generate sufficient cash flows due to unfavorable economic and market conditions (e.g., inflation, volatile interest rates and the possibility of a recession), changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws or other factors;
•adverse changes in real estate markets, including, but not limited to, the extent of future demand for multifamily units in our significant markets, barriers of entry into new markets which we may seek to enter in the future, limitations on our ability to increase or collect rental rates, competition, our ability to identify and consummate attractive acquisitions and dispositions on favorable terms, and our ability to reinvest sale proceeds in a manner that generates favorable returns;
•general and local real estate conditions, including any changes in the value of our real estate;
•decreasing rental rates or increasing vacancy rates;
•challenges in acquiring properties (including challenges in buying properties directly without the participation of joint venture partners and the limited number of multi-family property acquisition opportunities available to us), which acquisitions may not be completed or may not produce the cash flows or income expected;
•the competitive environment in which we operate, including competition that could adversely affect our ability to acquire properties and/or limit our ability to lease apartments or increase or maintain rental rates;
•exposure to risks inherent in investments in a single industry and sector;
•the concentration of our multi-family properties in the Southeastern United States and Texas, which makes us more susceptible to adverse developments in those markets;
•increases in expenses over which we have limited control, such as real estate taxes, insurance costs and utilities, due to inflation and other factors;
•impairment in the value of real estate we own;
•failure of property managers to properly manage properties;
•accessibility of debt and equity capital markets;
•disagreements with, or misconduct by, joint venture partners;
•inability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures;
•level and volatility of interest or capitalization rates or capital market conditions;
•extreme weather and natural disasters such as hurricanes, tornadoes and floods;
•lack of or insufficient amounts of insurance to cover, among other things, losses from catastrophes;
•risks associated with acquiring value-add multi-family properties, which involves greater risks than more conservative approaches;
•the condition of Fannie Mae or Freddie Mac, which could adversely impact us;
•changes in Federal, state and local governmental laws and regulations, including laws and regulations relating to taxes and real estate and related investments;
•our failure to comply with laws, including those requiring access to our properties by disabled persons, which could result in substantial costs;
•board determinations as to timing and payment of dividends, if any, and our ability or willingness to pay future dividends;
•our ability to satisfy the complex rules required to maintain our qualification as a REIT for federal income tax purposes;
•possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us or a subsidiary owned by us or acquired by us;
•our dependence on information systems and risks associated with breaches of such systems;
•disease outbreaks and other public health events, and measures that are taken by federal, state, and local governmental authorities in response to such outbreaks and events;
•impact of climate change on our properties or operations;
•risks associated with the stock ownership restrictions of the Internal Revenue Code of 1986, as amended (the "Code") for REITs and the stock ownership limit imposed by our charter; and
•the other factors described in the reports we file with the SEC, including those set forth in our Annual Report on Form 10-K under the captions "Item 1. Business," "Item 1A. Risk Factors," and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations".
We undertake no obligation to update or revise the information herein, whether as a result of new information, future events or circumstances, or otherwise.
Units under rehabilitation for which we have received or accrued rental income from business interruption insurance, while not physically occupied, are treated as leased (i.e., occupied) at rental rates in effect at the time of the casualty.
We use pro rata (as defined under "Non-GAAP Financial Measures and Definitions") to help the reader gain a better understanding of our unconsolidated joint ventures. However, the use of pro rata information has certain limitations and is not representative of our operations and accounts as presented in accordance with GAAP. Accordingly, pro rata information should be used with caution and in conjunction with the GAAP data presented herein and in our reports filed with the SEC.
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Table of Contents | Page Number | ||||
BRT Apartments Corp. (NYSE: BRT)
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BRT APARTMENTS CORP. REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS
Great Neck, New York – March 12, 2024 – BRT APARTMENTS CORP. (NYSE: BRT), a real estate investment trust that owns, operates, and, to a lesser extent, holds interests in joint ventures that own multi-family properties, today reported results for the fourth quarter and year ended December 31, 2023.
Highlights
•Reported results for the fourth quarter of 2023 of net loss of $1.7 million, or $(0.11) per diluted share, Funds from Operations, or FFO, of $0.34 per diluted share and Adjusted Funds from Operations, or AFFO, of $0.38 per diluted share.
•Reported results for 2023 of net income of $3.9 million, or $0.16 per diluted share, FFO of $1.19 per diluted share and AFFO of $1.52 per diluted share.
•Equity in earnings of unconsolidated joint ventures was $588,000 in the fourth quarter of 2023 and $2.3 million for 2023.
•Combined Portfolio NOI increased 6.4% for the fourth quarter and increased 2.0% for 2023 compared to the prior-year periods.
•Repurchased 206,105 shares during the fourth quarter at a weighted average price of $17.53, bringing the total shares repurchased in 2023 to 779,423 at a weighted average price of $18.47.
•In February 2023, the Company closed a $21.2 million loan secured by Silvana Oaks in North Charleston, SC and used the proceeds to fully repay its outstanding borrowings on the credit facility.
•In May 2023, the unconsolidated joint venture that owns Chatham Court and Reflections in Dallas, TX in which the Company had a 50% interest, completed the sale of the asset. The sale generated net proceeds to BRT of approximately $19.4 million and an IRR of 22% over a seven-year hold. BRT’s share of the gain from this sale was $14.7 million, and its share of the related early extinguishment of debt charge was $212,000.
•The interest rate on the credit facility was reduced as a result of an amendment affected in August 2023, which converted the interest rate index from the Prime rate to 30-day term SOFR plus 250 basis points and increased the interest rate floor to 6.0%.
•Declared a dividend of $0.25 per share for the first quarter of 2024.
See the reconciliations provided later in this release of FFO, AFFO and Combined Portfolio NOI, to net income, as calculated in accordance with GAAP, and the definitions of such terms under "Non-GAAP Financial Measures and Definitions."
Fourth Quarter Key Themes and Commentary
•Combined Portfolio NOI, net loss, FFO and AFFO results were in line with the Company’s previously issued full year 2023 guidance and commentary provided with its third quarter 2023 results.
•Performance at the two properties that have weighed on Combined Portfolio NOI throughout 2023 (Verandas at Alamo Ranch in San Antonio, TX and Bell’s Bluff in Nashville, TN) showed improvement during the quarter.
•The pace of share repurchases accelerated during the quarter to bring the total shares repurchased for the year to a total of 779,423 shares repurchased for an investment of $14.4 million. To date in the first quarter of 2024, the Company has repurchased 123,061 shares at a weighted average price of $18.43, leaving $7.3 million remaining under its share repurchase authorization.
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Fourth Quarter Financial and Operating Results
•Net loss attributable to common stockholders for the quarter ended December 31, 2023 was $1.7 million, or $(0.11) per diluted share, compared to net loss attributable to common stockholders of $4.2 million, or $0.22 per diluted share, for the corresponding 2022 quarter.
•FFO was $6.3 million, or $0.34 per diluted share, in the current quarter, compared to $7.6 million, or $0.40 per diluted share, in the corresponding 2022 quarter, primarily due to our portion of an insurance recovery of $1.5 million from an unconsolidated joint venture.
•AFFO was $7.1 million, or $0.38 per diluted share, in the current quarter, compared to AFFO of $7.0 million, or $0.37 per diluted share, in the corresponding 2022 quarter.
•Equity in earnings of unconsolidated joint ventures for the current quarter was $588,000 compared to $580,000 in the corresponding quarter of the prior year.
•Combined Portfolio NOI in the current quarter increased by 6.4% to $16.0 million, primarily due to increased rental rates and expenses recorded in the prior-year quarter related to the December 2022 blizzard.
•Diluted per share net income, FFO and AFFO during the quarter ended December 31, 2023 reflect the approximate 378,000 decrease in weighted average shares of common stock outstanding, primarily due to the 779,423 shares of common stock repurchased during 2023, partially offset by stock issuances pursuant to the Company’s at-the-market offering, equity incentive and dividend reinvestment programs during 2022 and 2023.
•For the Combined Portfolio, recurring capital expenditures were $1.4 million for the fourth quarter. Including $578,000 of replacement costs included in real estate operating expenditures, the total investment equates to approximately $2.0 million, or $255 per unit. Non-recurring capital expenditures totaled $1.0 million during the quarter.
•For the Combined Portfolio, average occupancy was 93.4% in the fourth quarter compared to 94.7% in the same period a year ago. Average monthly rents in the fourth quarter increased 4.2% in the fourth quarter compared with the same period a year ago.
•For leases signed during the fourth quarter in the Combined Portfolio, the Company experienced a 3.9% increase on renewal leases, a 2.5 % decrease on new leases and a 1.1% increase on a blended basis compared with the prior lease. The rent-to-income ratio for all new leases signed in the fourth quarter is 24%. For leases signed to date through February 29, 2024, the Company experienced a 3.1% increase on renewals, a 3.6% decrease on new leases and a 0.5% increase on a blended basis compared with the prior lease.
Full Year 2023 Financial and Operating Results
•Net income attributable to common stockholders for the year ended December 31, 2023 was $3.9 million, or $0.16 per diluted share, compared to net income attributable to common stockholders of $50.0 million, or $2.66 per diluted share, for the corresponding 2022 quarter. The current and prior-year periods included BRT’s $14.7 million (or $0.61 per diluted share) and $64.5 million (or $3.43 per diluted share), respectively, of gains from the sales of property owned by an unconsolidated subsidiaries.
•FFO was $22.6 million, or $1.19 per diluted share, in 2023, compared to $23.2 million, or $1.24 per diluted share, in 2022 quarter.
•AFFO was $28.9 million, or $1.52 per diluted share, in 2023, compared to AFFO of $28.4 million, or $1.52 per diluted share, in 2022 quarter.
•Equity in earnings of unconsolidated joint ventures for 2023 was $2.3 million compared to $1.9 million in 2022.
•Combined Portfolio NOI in 2023 increased by 2.0% to $62.0 million, primarily due to increased rental rates partially offset by higher insurance expenses. The Company estimates that if the two properties noted above were excluded, Combined Portfolio NOI would have increased by 3.9%.
•Diluted per share net income, FFO and AFFO during 2023 reflect the share repurchase and stock issuance activity noted above.
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•For the Combined Portfolio, recurring capital expenditures were $5.4 million for 2023. Including $305,000 of replacement costs included in real estate operating expenditures, the total investment equates to approximately $5.7 million, or $742 per unit. Non-recurring capital expenditures totaled $5.1 million in 2023.
Debt Metrics and Liquidity
At December 31, 2023, BRT’s available liquidity was approximately $83.5 million, comprised of $23.5 million of cash and cash equivalents and $60.0 million available under its credit facility. At December 31, 2023, BRT’s consolidated and unconsolidated mortgage debt had a weighted average interest rate of 4.02% and a weighted average remaining term to maturity of 6.8 years.
At March 1, 2024, BRT’s available liquidity was approximately $81.2 million, including $21.2 million of cash and cash equivalents and up to $60.0 million available under its credit facility. At March 1, 2024, the interest rate on the facility was 7.82%.
First Quarter 2024 Dividend
The Board of Directors declared a quarterly dividend on the Company’s common stock of $0.25 per share. The dividend is payable on April 4, 2024, to stockholders of record at the close of business on March 27, 2024.
Full Year 2024 Outlook
In lieu of specific guidance ranges for net income, FFO and AFFO for the year ending December 31, 2024, BRT has provided an outlook and assumptions for its operations, potential transaction activity and capital markets activity. The Company anticipates the following:
•The operational environment in BRT’s Combined Portfolio is expected to be consistent with other Sunbelt-focused operators with new supply muting new and renewal lease rent growth until at least the second half of 2024 as the new supply is absorbed.
•BRT intends to emphasize stable average occupancy within the portfolio until it can achieve lift in rental rates.
•Controllable expense growth is expected to grow modestly compared to 2023 and non-controllable expenses, particularly insurance, are expected to moderate somewhat compared to 2023.
•BRT’s balance sheet has no debt maturities until the third quarter of 2025, improved pricing and full availability on its credit facility and ample liquidity to deploy.
•The recently completed 240-unit Stono Oaks development in Johns Island, SC, of which BRT owns a 17.45% interest, is in lease up and is anticipated to lead to a drag on earnings from equity in unconsolidated joint ventures as the Company begins recognizing depreciation and interest expense associated with the development.
•A more favorable transaction environment in the second half of 2024 with smaller, private operators experiencing capital, ownership and/or refinancing challenges. The Company remains patient on asset growth in the near term but is cautiously optimistic that it may find new opportunities to deploy its available liquidity for rescue capital situations and/or asset acquisitions in late 2024 and into 2025.
•Long-term, the Company believes the Sunbelt offers compelling advantages due to the predominance of pro-business states, along with better population and job growth from migration patterns and business investment.
•With new supply growth expected to moderate in Sunbelt markets in 2025 and 2026, the Company expects a disciplined capital allocation strategy, a focus on stabilizing occupancy in a challenging leasing environment during 2024 and a pipeline of new investment opportunities to translate from a bridge year in 2024 to better growth in 2025 and 2026.
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BRT Apartments Corp. (NYSE: BRT)
````````````````````Financial Highlights
_________________________________________________________________________________________________________
As of December 31, | |||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||
Market capitalization (thousands) | $ | 345,439 | $ | 371,982 | |||||||||||||||||||||||||||||||||||||
Shares outstanding (thousands) | 18,582 | 18,940 | |||||||||||||||||||||||||||||||||||||||
Closing share price | $ | 18.59 | $ | 19.64 | |||||||||||||||||||||||||||||||||||||
Quarterly dividend declared per share | $ | 0.25 | $ | 0.25 | |||||||||||||||||||||||||||||||||||||
Quarter ended December 31, | |||||||||||||||||||||||||||||||||||||||||
Combined | Consolidated | Unconsolidated | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||
Properties owned | 28 | 29 | 21 | 21 | 7 | 8 | |||||||||||||||||||||||||||||||||||
Units | 7,707 | 8,201 | 5,420 | 5,420 | 2,287 | 2,781 | |||||||||||||||||||||||||||||||||||
Quarter Average occupancy | 93.4 | % | 94.7 | % | 93.5 | % | 94.8 | % | 93.0 | % | 94.5 | % | |||||||||||||||||||||||||||||
Quarter Average monthly rental revenue per occupied unit | $ | 1,404 | $ | 1,347 | $ | 1,362 | $ | 1,320 | $ | 1,504 | $ | 1,396 | |||||||||||||||||||||||||||||
Quarter ended December 31, | Twelve months ended December 31, | ||||||||||||||||||||||||||||||||||||||||
Per share data | 2023 (Unaudited) | 2022 (Unaudited) | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||
(Loss) earnings per share basic | $ | (0.11) | $ | (0.22) | $ | 0.16 | $ | 2.67 | |||||||||||||||||||||||||||||||||
(Loss) earnings per share diluted | $ | (0.11) | $ | (0.22) | $ | 0.16 | $ | 2.66 | |||||||||||||||||||||||||||||||||
FFO per share of common stock (diluted) (1) | $ | 0.34 | $ | 0.40 | $ | 1.19 | $ | 1.24 | |||||||||||||||||||||||||||||||||
AFFO per share of common stock (diluted) (1) | $ | 0.38 | $ | 0.37 | $ | 1.52 | $ | 1.52 | |||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||
Debt to Enterprise Value (2) | 65 | % | 62 | % | |||||||||||||||||||||||||||||||||||||
(1) See the reconciliation of Funds From Operations, or FFO, and Adjusted Funds From Operations, or AFFO, to net income, as calculated in accordance with
GAAP, and the definitions of such terms under "Non-GAAP Financial Measures and Definitions."
(2) Enterprise Value is equal to debt plus market capitalization less cash and cash equivalents, including BRT's pro-rata share of cash and cash equivalents at the
unconsolidated Joint Ventures. Cash and cash equivalents excludes restricted cash. Debt is equal to 100% of the debt at the consolidated properties and BRT's
pro-rata share of debt at the unconsolidated joint ventures. See "Non-GAAP Financial Measures and Definitions" for an explanation of "pro-rata share."
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BRT Apartments Corp. (NYSE: BRT)
Components of Net Asset Value
As of December 31, 2023
(all in thousands)
____________________________________________________________________________________________________________________
Net Operating Income (2023) (1) | ||||||||||||||||||||
Consolidated | $ | 51,248 | ||||||||||||||||||
Unconsolidated (Pro rata) | 12,377 | |||||||||||||||||||
Total Net Operating Income | $ | 63,625 | ||||||||||||||||||
OTHER ASSETS | ||||||||||||||||||||
Cash and Cash Equivalents | $ | 23,512 | ||||||||||||||||||
Cash and Cash Equivalents - Unconsolidated pro rata | 2,719 | |||||||||||||||||||
Restricted Cash | 632 | |||||||||||||||||||
Other Assets | 15,741 | |||||||||||||||||||
Other Assets - Unconsolidated pro rata | 12,504 | |||||||||||||||||||
Total Cash and Other Assets | $ | 55,108 | ||||||||||||||||||
OTHER LIABILITIES | ||||||||||||||||||||
Accounts Payable and Accrued Liabilities | $ | 21,948 | ||||||||||||||||||
Accounts Payable and Accrued Liabilities - Unconsolidated pro rata | 3,872 | |||||||||||||||||||
Total Other Liabilities | $ | 25,820 | ||||||||||||||||||
DEBT SUMMARY | ||||||||||||||||||||
Mortgages Payable, net of deferred costs: | ||||||||||||||||||||
Consolidated | $ | 422,427 | ||||||||||||||||||
Unconsolidated (Pro rata) | 116,104 | |||||||||||||||||||
Total Mortgages Payable | $ | 538,531 | ||||||||||||||||||
Credit Facility | — | |||||||||||||||||||
Subordinated Notes | 37,143 | |||||||||||||||||||
Total Debt Outstanding | $ | 575,674 | ||||||||||||||||||
Common Shares Outstanding | 18,582 | |||||||||||||||||||
_____________________________________________
(1) See the Appendix for a reconciliation of the non-GAAP amounts presented to GAAP amounts
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BRT Apartments Corp. (NYSE: BRT)
Results of Operations
(dollars in thousands except per share data)
_____________________________________________________________________________________________________________________
Three months Ended December 31, (Unaudited) | Twelve months Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental revenue and other revenue from other real estate properties | $ | 23,365 | $ | 22,711 | $ | 93,069 | $ | 70,515 | |||||||||||||||
Other income | 143 | — | 548 | 12 | |||||||||||||||||||
Total revenues | 23,508 | 22,711 | 93,617 | 70,527 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Real estate operating expenses | 10,256 | 10,262 | 41,821 | 30,558 | |||||||||||||||||||
Interest expense | 5,584 | 5,520 | 22,161 | 15,514 | |||||||||||||||||||
General and administrative | 3,513 | 3,815 | 15,433 | 14,654 | |||||||||||||||||||
Depreciation and amortization | 6,389 | 8,031 | 28,484 | 24,812 | |||||||||||||||||||
Total expenses | 25,742 | 27,628 | 107,899 | 85,538 | |||||||||||||||||||
Total revenues less total expenses | (2,234) | (4,917) | (14,282) | (15,011) | |||||||||||||||||||
Equity in earnings of unconsolidated joint ventures | 588 | 580 | 2,293 | 1,895 | |||||||||||||||||||
Equity in earnings from sale of unconsolidated joint venture properties | — | — | 14,744 | 64,531 | |||||||||||||||||||
Gain on sale of real estate | — | — | 604 | 6 | |||||||||||||||||||
Casualty loss | (323) | (850) | (323) | (850) | |||||||||||||||||||
Insurance recovery of casualty loss | 317 | 850 | 793 | 850 | |||||||||||||||||||
Gain on insurance recovery | — | — | 240 | 62 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (563) | |||||||||||||||||||
(Loss) income from continuing operations | (1,652) | (4,337) | 4,069 | 50,920 | |||||||||||||||||||
Income tax provision (benefit) | 49 | (155) | 54 | 821 | |||||||||||||||||||
Net (loss) income from continuing operations, net of taxes | (1,701) | (4,182) | 4,015 | 50,099 | |||||||||||||||||||
Income attributable to non-controlling interests | (36) | (37) | (142) | (144) | |||||||||||||||||||
Net (loss) income attributable to common stockholders | $ | (1,737) | $ | (4,219) | $ | 3,873 | $ | 49,955 | |||||||||||||||
Weighted average number of shares of common stock outstanding: | |||||||||||||||||||||||
Basic | 17,608,708 | 18,004,715 | 17,918,270 | 17,793,035 | |||||||||||||||||||
Diluted | 17,608,708 | 18,004,715 | 17,948,276 | 17,852,951 | |||||||||||||||||||
Per share amounts attributable to common stockholders: | |||||||||||||||||||||||
Basic | $ | (0.11) | $ | (0.22) | $ | 0.16 | $ | 2.67 | |||||||||||||||
Diluted | $ | (0.11) | $ | (0.22) | $ | 0.16 | $ | 2.66 |
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BRT Apartments Corp. (NYSE: BRT)
Operating Results of Unconsolidated Properties
(dollars in thousands)
_____________________________________________________________________________________________________________________
Three months Ended December 31, (Unaudited) | Twelve months Ended December 31, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Rental and other revenue | $ | 10,541 | $ | 12,033 | $ | 44,785 | $ | 72,873 | ||||||||||||||||||
Total revenues | 10,541 | 12,033 | 44,785 | 72,873 | ||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||
Real estate operating expenses | 4,742 | 5,563 | 20,577 | 33,086 | ||||||||||||||||||||||
Interest expense | 2,211 | 2,507 | 9,268 | 16,269 | ||||||||||||||||||||||
Depreciation | 2,570 | 2,841 | 10,403 | 17,798 | ||||||||||||||||||||||
Total expenses | 9,523 | 10,911 | 40,248 | 67,153 | ||||||||||||||||||||||
Total revenues less total expenses | 1,018 | 1,122 | 4,537 | 5,720 | ||||||||||||||||||||||
Other equity earnings | 7 | 32 | 126 | 121 | ||||||||||||||||||||||
Impairment of assets | — | (8,553) | — | (8,553) | ||||||||||||||||||||||
Insurance recoveries | — | 8,553 | — | 8,553 | ||||||||||||||||||||||
Gain on insurance recoveries | — | — | 65 | 567 | ||||||||||||||||||||||
Gain on sale of real estate properties | — | — | 38,418 | 118,270 | ||||||||||||||||||||||
Loss on extinguishment of debt | — | — | (561) | (3,491) | ||||||||||||||||||||||
Net income from joint ventures | $ | 1,025 | $ | 1,154 | $ | 42,585 | $ | 121,187 | ||||||||||||||||||
BRT equity in earnings and equity in earnings from sale of unconsolidated joint venture properties | $ | 588 | $ | 580 | $ | 17,037 | $ | 66,426 |
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BRT Apartments Corp. (NYSE: BRT)
Funds from Operations
(dollars in thousands)
____________________________________________________________________________________________________________________
Three months ended December 31, | Twelve months Ended December 31, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
GAAP Net (loss) income attributable to common stockholders | $ | (1,737) | $ | (4,219) | $ | 3,873 | $ | 49,955 | ||||||||||||||||||
Add: depreciation of properties | 6,389 | 8,031 | 28,484 | 24,812 | ||||||||||||||||||||||
Add: our share of depreciation in unconsolidated joint ventures | 1,307 | 1,443 | 5,292 | 10,677 | ||||||||||||||||||||||
Add: our share of impairment charge in unconsolidated joint venture properties | — | 1,493 | — | 1,493 | ||||||||||||||||||||||
Add: casualty loss | 323 | 850 | 323 | 850 | ||||||||||||||||||||||
Deduct: gain on sales of real estate and partnership interests | — | — | (604) | (6) | ||||||||||||||||||||||
Deduct: our share of earnings from sale of unconsolidated joint venture properties | — | — | (14,744) | (64,531) | ||||||||||||||||||||||
Adjust for non-controlling interests | (4) | (4) | (16) | (16) | ||||||||||||||||||||||
Funds from operations | $ | 6,278 | $ | 7,594 | $ | 22,608 | $ | 23,234 | ||||||||||||||||||
Adjustments for: straight-line rent accruals | 25 | 6 | 93 | 24 | ||||||||||||||||||||||
Add: loss on extinguishment of debt | — | — | — | 563 | ||||||||||||||||||||||
Add: our share of loss on extinguishment of debt from unconsolidated joint ventures | — | — | 212 | 1,880 | ||||||||||||||||||||||
Add: amortization of restricted stock and RSU expense | 692 | 1,304 | 4,768 | 4,487 | ||||||||||||||||||||||
Add: amortization of deferred mortgage and debt costs | 273 | 240 | 1,072 | 628 | ||||||||||||||||||||||
Add: our share of deferred mortgage costs from unconsolidated joint venture properties | 26 | 28 | 106 | 227 | ||||||||||||||||||||||
Add: amortization of fair value adjustment for mortgage debt | 150 | 166 | 613 | 148 | ||||||||||||||||||||||
Less: insurance recovery of casualty loss | (323) | (850) | (323) | (850) | ||||||||||||||||||||||
Less: our share of insurance recovery from unconsolidated joint ventures | — | (1,493) | — | (1,493) | ||||||||||||||||||||||
Less: gain on insurance recovery | — | — | (240) | (62) | ||||||||||||||||||||||
Less: our share of gain on insurance proceeds from unconsolidated joint venture | — | — | (30) | (432) | ||||||||||||||||||||||
Adjustments for non-controlling interests | (4) | (1) | (15) | (4) | ||||||||||||||||||||||
Adjusted funds from operations | $ | 7,117 | $ | 6,994 | $ | 28,864 | $ | 28,350 |
9
Funds from Operations
____________________________________________________________________________________________________________________
Three months ended December 31, | Twelve months Ended December 31, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
GAAP Net (loss) income attributable to common stockholders | $ | (0.09) | $ | (0.22) | $ | 0.20 | $ | 2.66 | ||||||||||||||||||
Add: depreciation of properties | 0.34 | 0.42 | 1.50 | 1.33 | ||||||||||||||||||||||
Add: our share of depreciation in unconsolidated joint ventures | 0.07 | 0.08 | 0.28 | 0.57 | ||||||||||||||||||||||
Add: our share of impairment charge in unconsolidated joint ventures | — | 0.08 | — | 0.08 | ||||||||||||||||||||||
Add: casualty loss | 0.02 | 0.04 | 0.02 | 0.05 | ||||||||||||||||||||||
Deduct: gain on sales of real estate and partnership interest | — | — | (0.03) | — | ||||||||||||||||||||||
Deduct: our share of earnings from sale of unconsolidated joint venture properties | — | — | (0.78) | (3.45) | ||||||||||||||||||||||
Adjustment for non-controlling interests | — | — | — | — | ||||||||||||||||||||||
Funds from operations per common share - diluted | 0.34 | 0.40 | 1.19 | 1.24 | ||||||||||||||||||||||
Adjustment for: straight-line rent accruals | — | — | — | — | ||||||||||||||||||||||
Add: loss on extinguishment of debt | — | — | — | 0.03 | ||||||||||||||||||||||
Add: our share of loss on extinguishment of debt from unconsolidated joint ventures | — | — | 0.01 | 0.10 | ||||||||||||||||||||||
Add: amortization of restricted stock and RSU expense | 0.04 | 0.07 | 0.25 | 0.25 | ||||||||||||||||||||||
Add: amortization of deferred mortgage and debt costs | 0.01 | 0.01 | 0.06 | 0.03 | ||||||||||||||||||||||
Add: our share of amortization of deferred mortgage and debt costs from unconsolidated ventures | — | — | 0.01 | 0.01 | ||||||||||||||||||||||
Add: amortization of fair value adjustment for mortgage debt | 0.01 | 0.03 | 0.01 | |||||||||||||||||||||||
Less: insurance recovery of casualty loss | (0.02) | (0.02) | (0.05) | |||||||||||||||||||||||
Deduct: our share of insurance recovery from unconsolidated joint ventures | — | (0.08) | — | (0.08) | ||||||||||||||||||||||
Deduct: gain on insurance recovery | — | — | (0.01) | — | ||||||||||||||||||||||
Deduct: our share of gain on insurance proceeds from unconsolidated joint ventures | — | — | — | (0.02) | ||||||||||||||||||||||
Adjustment for non-controlling interests | — | — | — | — | ||||||||||||||||||||||
Adjusted funds from operations per common share - diluted | $ | 0.38 | $ | 0.37 | $ | 1.52 | $ | 1.52 | ||||||||||||||||||
Diluted shares outstanding for FFO and AFFO | 18,560,985 | 18,938,807 | 18,931,026 | 18,782,695 |
10
BRT Apartments Corp. (NYSE: BRT)
Consolidated Balance Sheets
(amounts in thousands, except per share amounts)
_____________________________________________________________________________________________________________________
December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
ASSETS | ||||||||||||||
Real estate properties, net of accumulated depreciation | $ | 635,836 | $ | 651,603 | ||||||||||
Investment in unconsolidated joint ventures | 34,242 | 42,576 | ||||||||||||
Cash and cash equivalents | 23,512 | 20,281 | ||||||||||||
Restricted cash | 632 | 872 | ||||||||||||
Other assets | 15,741 | 17,284 | ||||||||||||
Total Assets | $ | 709,963 | $ | 732,616 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Liabilities: | ||||||||||||||
Mortgages payable, net of deferred costs | $ | 422,427 | $ | 403,792 | ||||||||||
Junior subordinated notes, net of deferred costs | 37,143 | 37,123 | ||||||||||||
Credit facility, net of deferred costs | — | 19,000 | ||||||||||||
Accounts payable and accrued liabilities | 21,948 | 22,631 | ||||||||||||
Total Liabilities | 481,518 | 482,546 | ||||||||||||
Commitments and contingencies | ||||||||||||||
Equity: | ||||||||||||||
BRT Apartments Corp. stockholders' equity: | ||||||||||||||
Preferred shares $.01 par value 2,000 shares authorized, none issued | — | — | ||||||||||||
Common stock, $.01 par value, 300,000 shares authorized; | ||||||||||||||
17,536 and 18,006 shares outstanding | 175 | 180 | ||||||||||||
Additional paid-in capital | 267,271 | 273,863 | ||||||||||||
Accumulated deficit | (38,986) | (23,955) | ||||||||||||
Total BRT Apartments Corp. stockholders’ equity | 228,460 | 250,088 | ||||||||||||
Non-controlling interests | (15) | (18) | ||||||||||||
Total Equity | 228,445 | 250,070 | ||||||||||||
Total Liabilities and Equity | $ | 709,963 | $ | 732,616 |
11
BRT Apartments Corp. (NYSE: BRT)
Dispositions
(dollars in thousands)
________________________________________________________________________________________
Disposition of Property by Unconsolidated Joint Ventures | ||||||||||||||||||||||||||||||||||||||||||||
Property/Location | Sale Date | Units | Interest Owned | Sales Price | Gain on Sale | BRT's Share of Gain on Sale | BRT's share of Loss on extinguishment of debt | |||||||||||||||||||||||||||||||||||||
Chatham and Reflection Court - Dallas, TX | 5/12/2023 | 494 | 50% | $ | 73,000 | $ | 38,418 | $ | 14,744 | $ | 212 | |||||||||||||||||||||||||||||||||
12
BRT Apartments Corp. (NYSE: BRT)
Value-Add Program and Capital Expenditures
________________________________________________________________________________________
For the Quarter ended December 31, 2023 | ||||||||||||||||||||||||||||||||
Value-Add Program | ||||||||||||||||||||||||||||||||
(Includes consolidated and unconsolidated amounts) | ||||||||||||||||||||||||||||||||
Units Rehabilitated (1) | Estimated Rehab Costs (2) | Estimated Rehab Costs Per unit | Estimated Average Monthly Rent Increase (3) | Estimated Annualized ROI (3) | Estimated units available to be renovated over next 24 months | |||||||||||||||||||||||||||
33 | $263,000 | $7,980 | $90 | 14% | 600 | |||||||||||||||||||||||||||
(1) Refers to rehabilitated units with respect to which a new lease or renewal lease was entered into during the period. | ||||||||||||||||||||||||||||||||
(2) Reflects rehab costs incurred during the current and prior periods with respect to units completed, in which a new lease or renewal lease was entered into during the current period. | ||||||||||||||||||||||||||||||||
(3) These results are not necessarily indicative of the results that would be generated if such improvements were made across our portfolio of properties or at any particular property. Rents at a property may increase for reasons wholly unrelated to property improvements, such as changes in demand for rental units in a particular market or sub-market. Even if units are available to be renovated, the Company may decide not to renovate such units. |
For the twelve months ended December 31, 2023 | |||||||||||||||||
Capital Expenditures (5) | |||||||||||||||||
(Includes consolidated and unconsolidated amounts) | |||||||||||||||||
Gross Expenditures | Less: JV Partner Share | BRT Share of Expenditures (4) | |||||||||||||||
Estimated Recurring Capital Expenditures (1) | $ | 5,967,000 | $ | 553,000 | $ | 5,414,000 | |||||||||||
Estimated Non-Recurring Capital Expenditures (2) | 5,447,000 | 346,000 | 5,101,000 | ||||||||||||||
Total Capital Expenditures | $ | 11,414,000 | $ | 899,000 | $ | 10,515,000 | |||||||||||
Replacements (operating expense) (3) | $ | 459,072 | $ | 153,718 | $ | 305,354 | |||||||||||
Estimated Recurring Capital Expenditures and Replacements per unit (7,707 units) | $ | 834 | $ | 92 | $ | 742 | |||||||||||
(1) Recurring capital expenditures represent our estimate of expenditures incurred at the property to maintain the property's existing operation. | |||||||||||||||||
(2) Non-recurring capital expenditures represent our estimate of significant improvements to the common areas, property exteriors, or interior units of the property, and revenue enhancing upgrades. | |||||||||||||||||
(3) Replacements are expensed as incurred at the property. | |||||||||||||||||
(4) Based on BRT's pro-rata share | |||||||||||||||||
(5) BRT previously classified capital expenditures on a property level basis. The Company has reclassified,herein the previously reported 2023 capital expenditures on a portfolio level basis and the 2023 numbers are presented in a manner in which we intend to present such information on a going forward basis. |
13
BRT Apartments Corp. (NYSE: BRT)
Debt Analysis
As of December 31, 2023
(dollars in thousands)
____________________________________________________________________________________________________________________________________
Consolidated | ||||||||||||||||||||||||||||||||
Year | Total Principal Payments | Scheduled Amortization | Principal Payments Due at Maturity | Percent of Total Principal Payments Due At Maturity | Weighted Average Interest Rate (1) | |||||||||||||||||||||||||||
2024 | $ | 3,331 | $ | 3,331 | $ | — | — | % | — | % | ||||||||||||||||||||||
2025 | 19,860 | 4,485 | 15,375 | 4 | % | 4.42 | % | |||||||||||||||||||||||||
2026 | 74,622 | 5,091 | 69,531 | 18 | % | 4.12 | % | |||||||||||||||||||||||||
2027 | 46,189 | 3,394 | 42,795 | 11 | % | 3.96 | % | |||||||||||||||||||||||||
2028 | 40,697 | 2,746 | 37,951 | 10 | % | 4.47 | % | |||||||||||||||||||||||||
Thereafter | 241,737 | 22,029 | 219,708 | 57 | % | 3.92 | % | |||||||||||||||||||||||||
Total | $ | 426,436 | $ | 41,076 | $ | 385,360 | 100 | % | ||||||||||||||||||||||||
Unconsolidated (BRT pro rata share) | ||||||||||||||||||||||||||||||||
Year | Total Principal Payments | Scheduled Amortization | Principal Payments Due at Maturity | Percent of Total Principal Payments Due At Maturity | Weighted Average Interest Rate (1) | |||||||||||||||||||||||||||
2024 | $ | 1,759 | $ | 1,759 | — | — | % | — | % | |||||||||||||||||||||||
2025 | 1,842 | 1,842 | $ | — | — | % | — | % | ||||||||||||||||||||||||
2026 | 24,533 | 84 | 24,449 | 22 | % | 4.97 | % | |||||||||||||||||||||||||
2027 | 13,026 | 1,472 | 11,554 | 11 | % | 4.15 | % | |||||||||||||||||||||||||
2028 | 34,264 | 449 | 33,815 | 31 | % | 4.26 | % | |||||||||||||||||||||||||
Thereafter | 41,206 | 1,340 | 39,866 | 36 | % | 3.43 | % | |||||||||||||||||||||||||
Total | $ | 116,630 | $ | 6,946 | $ | 109,684 | 100 | % | ||||||||||||||||||||||||
Combined (2) | ||||||||||||||||||||||||||||||||
Year | Total Principal Payments | Scheduled Amortization | Principal Payments Due at Maturity | Percent of Total Principal Payments Due At Maturity | Weighted Average Interest Rate (1) | |||||||||||||||||||||||||||
2024 | $ | 5,090 | $ | 5,090 | $ | — | — | % | — | % | ||||||||||||||||||||||
2025 | 21,702 | 6,327 | 15,375 | 3 | % | 4.42 | % | |||||||||||||||||||||||||
2026 | 99,155 | 5,175 | 93,980 | 19 | % | 4.34 | % | |||||||||||||||||||||||||
2027 | 59,215 | 4,866 | 54,349 | 11 | % | 4.00 | % | |||||||||||||||||||||||||
2028 | 74,961 | 3,195 | 71,766 | 14 | % | 4.37 | % | |||||||||||||||||||||||||
Thereafter | 282,943 | 23,369 | 259,574 | 53 | % | 4.34 | % | |||||||||||||||||||||||||
Total | $ | 543,066 | $ | 48,022 | $ | 495,044 | 100 | % | ||||||||||||||||||||||||
Weighted Average Remaining Term to Maturity (2) | 6.8 | yrs | ||||||||||||||||||||||||||||||
Weighted Average Interest Rate (2) | 4.02 | % | ||||||||||||||||||||||||||||||
Debt Service Coverage Ratio for the quarter ended December 31, 2023 | 1.72 | (3) | ||||||||||||||||||||||||||||||
(1) Based on balloon payments at maturity. Includes consolidated and BRT pro rata share amounts. | ||||||||||||||||||||||||||||||||
(2) Includes consolidated and BRT pro rata share unconsolidated amounts. | ||||||||||||||||||||||||||||||||
(3) See definition under "Non-GAAP Financial Measures and Definitions." Includes consolidated and 100% of the unconsolidated amounts. |
Junior Subordinated Notes | |||||||||||
Principal Balance | $37,400 excluding deferred costs of $257,000 | ||||||||||
Interest Rate | 3 month SOFR + 2.26% (i.e., 7.65% at 12/31/2023); Rate in effect for next payment on April 30, 2024 is 7.58% | ||||||||||
Maturity | April 30, 2036 | ||||||||||
Credit Facility (as of December 31, 2022) | |||||||||||
Maximum Amount Available | Up to $60,000 | ||||||||||
Amount Outstanding | $0 | ||||||||||
Interest Rate | 1 month term SOFR + 250 basis points (i.e., 7.85% at 12/31/2023) subject to a floor of 6% | ||||||||||
Maturity | September 14, 2025 |
14
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Quarter ended December 31, 2023
(dollars in thousands, except monthly rent amounts)
_____________________________________________________________________________________________________________________
Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Units at period end | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Weighted Average Occupancy | Weighted Average Monthly Rent per Occ. Unit | ||||||||||||||||||||||||||||||||||||||||||||||||||
Texas | 600 | $ | 2,335 | $ | 1,205 | $ | 1,130 | 8.6 | % | 91.6 | % | $ | 1,213 | |||||||||||||||||||||||||||||||||||||||||||
Georgia | 688 | 2,624 | 1,183 | 1,441 | 11.0 | % | 91.5 | % | 1,238 | |||||||||||||||||||||||||||||||||||||||||||||||
Florida | 518 | 2,335 | 1,183 | 1,152 | 8.8 | % | 95.7 | % | 1,442 | |||||||||||||||||||||||||||||||||||||||||||||||
Ohio | 264 | 943 | 380 | 563 | 4.3 | % | 94.6 | % | 1,135 | |||||||||||||||||||||||||||||||||||||||||||||||
Virginia | 220 | 1,152 | 482 | 670 | 5.1 | % | 95.3 | % | 1,632 | |||||||||||||||||||||||||||||||||||||||||||||||
North Carolina | 264 | 1,049 | 402 | 647 | 4.9 | % | 94.2 | % | 1,277 | |||||||||||||||||||||||||||||||||||||||||||||||
South Carolina | 474 | 2,177 | 1,123 | 1,054 | 8.0 | % | 94.8 | % | 1,443 | |||||||||||||||||||||||||||||||||||||||||||||||
Tennessee | 702 | 3,540 | 1,588 | 1,952 | 14.9 | % | 92.0 | % | 1,688 | |||||||||||||||||||||||||||||||||||||||||||||||
Alabama | 740 | 2,787 | 1,176 | 1,611 | 12.3 | % | 93.1 | % | 1,195 | |||||||||||||||||||||||||||||||||||||||||||||||
Missouri | 174 | 972 | 379 | 593 | 4.5 | % | 95.6 | % | 1,718 | |||||||||||||||||||||||||||||||||||||||||||||||
Mississippi | 776 | 3,081 | 1,043 | 2,038 | 15.5 | % | 94.9 | % | 1,297 | |||||||||||||||||||||||||||||||||||||||||||||||
Sold properties and legacy assets | — | 370 | 112 | 258 | 2.0 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
Totals | 5,420 | $ | 23,365 | $ | 10,256 | $ | 13,109 | 100 | % | 93.5 | % | $ | 1,362 | |||||||||||||||||||||||||||||||||||||||||||
Unconsolidated (Pro-Rata Share) (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Units at period end | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Weighted Average Occupancy | Weighted Average Rent per Occ. Unit | ||||||||||||||||||||||||||||||||||||||||||||||||||
Texas | 1,103 | $ | 2,652 | $ | 1,162 | $ | 1,490 | 49.4 | % | 91.8 | % | $ | 1,551 | |||||||||||||||||||||||||||||||||||||||||||
South Carolina | 713 | 1,279 | 443 | 836 | 27.7 | % | 93.5 | % | 1,530 | |||||||||||||||||||||||||||||||||||||||||||||||
Georgia | 271 | 956 | 432 | 524 | 17.4 | % | 94.8 | % | 1,542 | |||||||||||||||||||||||||||||||||||||||||||||||
Alabama | 200 | 572 | 270 | 302 | 10.0 | % | 96.0 | % | 1,117 | |||||||||||||||||||||||||||||||||||||||||||||||
Sold properties | — | (14) | 120 | (134) | (4.4) | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
2,287 | $ | 5,445 | $ | 2,427 | $ | 3,018 | 100.0 | % | 93.0 | % | $ | 1,504 |
_________________________________________________________________________________
(1) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI and pro-rata share under "Non-GAAP Financial
Measures and Definitions."
15
BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Twelve months ended December 31, 2023
(dollars in thousands, except monthly rent amounts)
____________________________________________________________________________________________________________________
Consolidated | ||||||||||||||||||||||||||||||||||||||||||||
Units at period end | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Weighted Average Occupancy | Weighted Average Rent per Occ. Unit | ||||||||||||||||||||||||||||||||||||||
Texas | 600 | $ | 9,231 | $ | 5,317 | $ | 3,914 | 7.6 | % | 90.9 | % | $ | 1,211 | |||||||||||||||||||||||||||||||
Georgia | 688 | 10,571 | 5,031 | 5,540 | 10.8 | % | 93.1 | % | 1,222 | |||||||||||||||||||||||||||||||||||
Florida | 518 | 9,429 | 4,560 | 4,869 | 9.5 | % | 95.3 | % | 1,451 | |||||||||||||||||||||||||||||||||||
Ohio | 264 | 3,750 | 1,639 | 2,111 | 4.1 | % | 96.5 | % | 1,104 | |||||||||||||||||||||||||||||||||||
Virginia | 220 | 4,586 | 1,833 | 2,753 | 5.4 | % | 95.8 | % | 1,623 | |||||||||||||||||||||||||||||||||||
North Carolina | 264 | 4,168 | 1,659 | 2,509 | 4.9 | % | 94.7 | % | 1,251 | |||||||||||||||||||||||||||||||||||
South Carolina | 474 | 8,586 | 4,477 | 4,109 | 8.0 | % | 95.3 | % | 1,407 | |||||||||||||||||||||||||||||||||||
Tennessee | 702 | 14,088 | 6,023 | 8,065 | 15.7 | % | 93.6 | % | 1,642 | |||||||||||||||||||||||||||||||||||
Alabama | 740 | 11,193 | 4,870 | 6,323 | 12.3 | % | 93.9 | % | 1,186 | |||||||||||||||||||||||||||||||||||
Missouri | 174 | 3,802 | 1,682 | 2,120 | 4.1 | % | 94.9 | % | 1,711 | |||||||||||||||||||||||||||||||||||
Mississippi | 776 | 12,185 | 4,251 | 7,934 | 15.5 | % | 95.8 | % | 1,267 | |||||||||||||||||||||||||||||||||||
Sold properties and legacy assets | — | 1,480 | 479 | 1,001 | 2.0 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Totals | 5,420 | $ | 93,069 | $ | 41,821 | $ | 51,248 | 100 | % | 94.2 | % | $ | 1,343 | |||||||||||||||||||||||||||||||
Unconsolidated (Pro-Rata Share)(1) | ||||||||||||||||||||||||||||||||||||||||||||
Units at period end | Revenues | Property Operating Expenses | NOI (1) | % of NOI Contribution | Average Occupancy | Average Rent per Occ. Unit | ||||||||||||||||||||||||||||||||||||||
Texas | 1,103 | $ | 10,488 | $ | 5,040 | $ | 5,448 | 44.0 | % | 92.6% | $ | 1,386 | ||||||||||||||||||||||||||||||||
South Carolina | 713 | 5,114 | 1,846 | 3,268 | 26.4 | % | 94.0% | 1,488 | ||||||||||||||||||||||||||||||||||||
Georgia | 271 | 3,813 | 1,830 | 1,983 | 16.0 | % | 95.8% | 1,507 | ||||||||||||||||||||||||||||||||||||
Alabama | 200 | 2,235 | 1,115 | 1,120 | 9.0 | % | 97.3% | 1,073 | ||||||||||||||||||||||||||||||||||||
Other (2) | — | 1,429 | 871 | 558 | 4.5 | % | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Totals | 2,287 | $ | 23,079 | $ | 10,702 | $ | 12,377 | 100 | % | 93.8 | % | $ | 1,403 | |||||||||||||||||||||||||||||||
_________________________________________________________________________________
(1) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI and pro-rata share under "Non-GAAP Financial
Measures and Definitions."
(2) Represents properties that were sold.
16
BRT Apartments Corp. (NYSE: BRT)
Combined Portfolio Metrics (1)
Quarter ended December 31, 2023 and 2022
(dollars in thousands)
____________________________________________________________________________________________________________________
Three months ended December 31, | |||||||||||||||||
2023 | 2022 | % Change | |||||||||||||||
Combined Revenues | $ | 28,455 | $ | 27,605 | 3.1 | % | |||||||||||
Combined Operating Expenses | |||||||||||||||||
Payroll | $ | 2,540 | $ | 2,452 | 3.6 | % | |||||||||||
Real Estate taxes | 2,916 | 3,103 | (6.0) | % | |||||||||||||
Management Fees | 805 | 844 | (4.6) | % | |||||||||||||
Insurance | 1,309 | 790 | 65.7 | % | |||||||||||||
Utilities | 1,704 | 1,653 | 3.1 | % | |||||||||||||
Repairs and Maintenance | 1,545 | 2,231 | (30.7) | % | |||||||||||||
Replacements | 577 | 619 | (6.8) | % | |||||||||||||
Advertising, Leasing and Other | 1,055 | 875 | 20.6 | % | |||||||||||||
Total Combined Operating Expenses | $ | 12,451 | $ | 12,567 | (0.9) | % | |||||||||||
Total Combined Operating Income | $ | 16,004 | $ | 15,038 | 6.4 | % |
_______________________________
(1) Please refer to Non-GAAP Financial Measures, Definitions and Reconciliations for definition of Combined Same Store and reconciliation of Net Operating
Income. Combined portfolio refers to the consolidated same store properties, the unconsolidated same store properties presented on a pro rata share basis,
with a total number of 7,707 units.
17
BRT Apartments Corp. (NYSE: BRT)
Combined Portfolio Metrics (1)
Year ended December 31, 2023 and 2022
(dollars in thousands)
____________________________________________________________________________________________________________________
Twelve months Ended December 31, | ||||||||||||||||||||
2023 | 2022 | % Change | ||||||||||||||||||
Combined Revenues | $ | 113,210 | $ | 107,850 | 5.0 | % | ||||||||||||||
Combined Operating Expenses | ||||||||||||||||||||
Payroll | $ | 9,899 | $ | 9,268 | 6.8 | % | ||||||||||||||
Real Estate taxes | 12,951 | 12,432 | 4.2 | % | ||||||||||||||||
Management Fees | 3,231 | 3,358 | (3.8) | % | ||||||||||||||||
Insurance | 4,962 | 3,009 | 64.9 | % | ||||||||||||||||
Utilities | 6,784 | 6,271 | 8.2 | % | ||||||||||||||||
Repairs and Maintenance | 6,703 | 6,784 | (1.2) | % | ||||||||||||||||
Replacements | 2,488 | 2,246 | 10.8 | % | ||||||||||||||||
Advertising, Leasing and Other | 4,151 | 3,677 | 12.9 | % | ||||||||||||||||
Total Combined Operating Expenses | $ | 51,169 | $ | 47,045 | 8.8 | % | ||||||||||||||
Total Combined Operating Income | $ | 62,041 | $ | 60,805 | 2.0 | % |
_______________________________
(1)Please refer to Non-GAAP Financial Measures, Definitions and Reconciliations for definition of Combined Portfolio and reconciliation of Net Operating Income. Combined portfolio refers to the consolidated same store properties, the unconsolidated same store properties presented on a pro rata share basis, and the other multifamily properties that BRT currently owns presented at 100% ownership for all periods presented with a total number of 7,707 units..
18
BRT Apartments Corp. (NYSE: BRT)
Portfolio Table
As of December 31, 2023
___________________________________________________________________________________________
Property | City | State | Year Built | Year Acquired | Property Age | Units | Q4 2023 Avg. Occupancy | Q4 2023 Avg. Rent per Occ. Unit | ||||||||||||||||||||||||
Consolidated Properties - All 100% owned | ||||||||||||||||||||||||||||||||
Silvana Oaks | North Charleston | SC | 2010 | 2012 | 13 | 208 | 93.6% | $ | 1,515 | |||||||||||||||||||||||
Avondale Station | Decatur | GA | 1954 | 2012 | 69 | 212 | 89.7% | 1,442 | ||||||||||||||||||||||||
Newbridge Commons | Columbus | OH | 1999 | 2013 | 24 | 264 | 94.6% | 1,135 | ||||||||||||||||||||||||
Avalon | Pensacola | FL | 2008 | 2014 | 15 | 276 | 94.9% | 1,465 | ||||||||||||||||||||||||
Parkway Grande | San Marcos | TX | 2014 | 2015 | 9 | 192 | 92.5% | 1,317 | ||||||||||||||||||||||||
Woodland Trails | LaGrange | GA | 2010 | 2015 | 13 | 236 | 94.5% | 1,353 | ||||||||||||||||||||||||
Kilburn Crossing | Fredericksburg | VA | 2005 | 2016 | 18 | 220 | 95.3% | 1,632 | ||||||||||||||||||||||||
Bell's Bluff | Nashville | TN | 2019 | 2018 | 4 | 402 | 90.5% | 1,853 | ||||||||||||||||||||||||
Crossings of Bellevue | Nashville | TN | 1985 | 2014 | 38 | 300 | 94.0% | 1,474 | ||||||||||||||||||||||||
Crestmont at Thornblade | Greenville | SC | 1998 | 2018 | 25 | 266 | 95.7% | 1,387 | ||||||||||||||||||||||||
Verandas at Alamo Ranch | San Antonio | TX | 2015 | 2016 | 8 | 288 | 89.7% | 1,135 | ||||||||||||||||||||||||
Vanguard Heights | Creve Coeur | MO | 2016 | 2017 | 7 | 174 | 95.6% | 1,718 | ||||||||||||||||||||||||
Jackson Square | Tallahassee | FL | 1996 | 2017 | 27 | 242 | 96.6% | 1,415 | ||||||||||||||||||||||||
Brixworth at Bridgestreet | Huntsville | AL | 1985 | 2013 | 38 | 208 | 93.6% | 1,076 | ||||||||||||||||||||||||
Woodland Apartments | Boerne | TX | 2007 | 2017 | 16 | 120 | 94.4% | 1,228 | ||||||||||||||||||||||||
Grove at River Place | Macon | GA | 1988 | 2016 | 35 | 240 | 90.1% | 941 | ||||||||||||||||||||||||
Civic Center 1 | Southaven | MS | 2002 | 2016 | 21 | 392 | 95.8% | 1,255 | ||||||||||||||||||||||||
Civic Center 2 | Southaven | MS | 2005 | 2016 | 18 | 384 | 93.9% | 1,340 | ||||||||||||||||||||||||
Abbotts Run | Wilmington | NC | 2001 | 2020 | 22 | 264 | 94.2% | 1,277 | ||||||||||||||||||||||||
Somerset at Trussville | Trussville | AL | 2007 | 2019 | 16 | 328 | 92.5% | 1,243 | ||||||||||||||||||||||||
Magnolia Pointe | Madison | AL | 1991 | 2017 | 32 | 204 | 93.4% | 1,242 | ||||||||||||||||||||||||
Age Weighted Avg. Age/Total Consolidated | 22 | 5,420 | ||||||||||||||||||||||||||||||
Properties owned by Unconsolidated Joint Ventures | ||||||||||||||||||||||||||||||||
% Ownership | ||||||||||||||||||||||||||||||||
Pointe at Lenox Park | Atlanta | GA | 1989 | 2016 | 34 | 271 | 94.8% | 1,542 | 74.0 | % | ||||||||||||||||||||||
Gateway Oaks | Forney | TX | 2016 | 2016 | 7 | 313 | 92.2% | 1,405 | 50.0 | % | ||||||||||||||||||||||
Mercer Crossing | Dallas | TX | 2015 | 2017 | 8 | 509 | 91.9% | 1,736 | 50.0 | % | ||||||||||||||||||||||
Canalside Lofts | Columbia | SC | 2008 | 2017 | 15 | 374 | 92.6% | 1,444 | 32.0 | % | ||||||||||||||||||||||
Landings of Carrier Parkway | Grand Prairie | TX | 2001 | 2018 | 23 | 281 | 91.0% | 1,376 | 50.0 | % | ||||||||||||||||||||||
Canalside Sola | Columbia | SC | 2015 | 2018 | 8 | 339 | 94.5% | 1,622 | 46.2 | % | ||||||||||||||||||||||
The Village at Lakeside | Auburn | AL | 1988 | 2019 | 35 | 200 | 96.0% | 1,117 | 80.0 | % | ||||||||||||||||||||||
Weighted Avg. Age/Total Unconsolidated | 16 | 2,287 | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Stono Oaks (1) | Johns Island | SC | ||||||||||||||||||||||||||||||
Weighted Avg./Total Portfolio | 20 | 7,707 |
____________________________________
(1) Purchased a 17.45% interest in a planned 240-unit development property, which is now substantially complete.
19
BRT Apartments Corp. (NYSE: BRT)
APPENDIX
20
BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES AND DEFINITIONS
(dollars in thousands)
________________________________________________________________________________________
Adjusted Funds from Operations (AFFO)
BRT computes AFFO by adjusting FFO for loss on extinguishment of debt, our straight-line rent accruals, restricted stock and RSU compensation expense, fair value adjustment of mortgage debt, gain on insurance recovery, insurance recovery from casualty loss and deferred mortgage and debt costs (including, in each case as applicable, from our share from our unconsolidated joint ventures). Since the NAREIT White Paper does not provide guidelines for computing AFFO, the computation of AFFO may vary from one REIT to another.
Combined Portfolio
Combined portfolio refers to the consolidated same store properties, the unconsolidated same store properties presented on a pro rata share basis, and the other multifamily properties that BRT currently owns presented at 100% ownership for all periods presented.
Debt Service Coverage Ratio
Debt service coverage ratio is net operating income ("NOI") divided by total debt service and includes both consolidated and unconsolidated assets.
Funds from Operations (FFO)
BRT computes FFO in accordance with the "White Paper on Funds From Operations" issued by the National Association of Real Estate Investment Trusts ("NAREIT") and NAREIT's related guidance. FFO is defined in the White Paper as net income (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment write-downs of certain real estate assets and investments in entities where the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect funds from operations on the same basis. In computing FFO, we do not add back to net income the amortization of costs in connection with our financing activities or depreciation of non-real estate assets.
Net Operating Income (NOI)
BRT computes NOI by adjusting net income (loss) to (a) add back (1) interest expense, (2) general and administrative expenses, (3) depreciation expense, (4) impairment charges, (5) provision for taxes, (6) loss on extinguishment of debt, (7) equity in loss of unconsolidated joint ventures, (8) casualty loss and (9) the impact of non-controlling interests, and (b) deduct (1) other income, (2) gain on sale of real estate (3) gain on sale of partnership interest, (4) equity in earnings from sale of consolidated joint venture properties, (5) insurance recovery of casualty loss and (6) gain on insurance recoveries.
Pro-Rata Share
BRT's pro-rata share gives effect to its percentage equity interest in the unconsolidated joint ventures that own properties. Due to the operation of allocation/distribution provision of the joint venture agreements pursuant to which BRT participates in the ownership of these properties, BRT's share of the gain and loss on the sale of a property may be less than implied by BRT's percentage equity interest. Notwithstanding the foregoing, when referring to the number of units, average occupancy, and average rent per unit, the amount shown reflects 100% of the amount.
Same Store
Same store properties refer to stabilized properties (as described below) that we owned and operated for the entirety of periods being compared, except for properties that are under construction, in lease-up, or are undergoing development or redevelopment. We move properties previously excluded from our same store portfolio (because they were under construction, in lease up or are in development or redevelopment) into the same store designation once they have stabilized and such status has been reflected fully in all applicable periods of comparison.
Stabilized Properties
Newly constructed, lease-up, development and redevelopment properties are deemed stabilized upon the earlier to occur of the first full calendar quarter beginning (a) 12 months after the property is fully completed and put in service and (b) attainment of at least 90% physical occupancy.
Total Debt Service
Total debt service is the cash required to cover the repayment of interest and principal on a debt for a particular period. Total debt service is used in the calculation of the debt service coverage ratio which is used to determine the borrower’s ability to make debt service payments.
21
BRT Apartments Corp. (NYSE: BRT)
Consolidated Same Store Comparisons (1)
Quarters ended December 31, 2023 and 2022
(dollars in thousands, except monthly rent amounts)
_____________________________________________________________________________________________________________________
Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Units | 2023 | 2022 | % Change | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Georgia | 688 | $ | 2,624 | $ | 2,611 | 0.5 | % | $ | 1,183 | $ | 1,226 | (3.5) | % | $ | 1,441 | $ | 1,385 | 4.0 | % | |||||||||||||||||||||||||||||||||||||||||||
Florida | 518 | 2,335 | 2,319 | 0.7 | % | 1,183 | 936 | 26.4 | % | 1,152 | 1,383 | (16.7) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Texas | 600 | 2,335 | 2,287 | 2.1 | % | 1,205 | 1,326 | (9.1) | % | 1,130 | 961 | 17.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Ohio | 264 | 943 | 917 | 2.8 | % | 380 | 374 | 1.6 | % | 563 | 543 | 3.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Virginia | 220 | 1,152 | 1,139 | 1.1 | % | 482 | 446 | 8.1 | % | 670 | 693 | (3.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
North Carolina | 264 | 1,049 | 990 | 6.0 | % | 402 | 379 | 6.1 | % | 647 | 611 | 5.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
South Carolina | 474 | 2,177 | 2,051 | 6.1 | % | 1,123 | 1,150 | (2.3) | % | 1,054 | 901 | 17.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Alabama | 740 | 2,787 | 2,682 | 3.9 | % | 1,176 | 1,148 | 2.4 | % | 1,611 | 1,534 | 5.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Missouri | 174 | 972 | 899 | 8.1 | % | 379 | 368 | 3.0 | % | 593 | 531 | 11.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Mississippi | 776 | 3,081 | 2,906 | 6.0 | % | 1,043 | 1,156 | (9.8) | % | 2,038 | 1,750 | 16.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Tennessee | 702 | 3,540 | 3,530 | 0.3 | % | 1,588 | 1,645 | (3.5) | % | 1,952 | 1,885 | 3.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Totals | 5,420 | $ | 22,995 | $ | 22,331 | 3.0 | % | $ | 10,144 | $ | 10,154 | (0.1) | % | $ | 12,851 | $ | 12,177 | 5.5 | % | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Georgia | 91.5 | % | 95.5 | % | (4.2) | % | $ | 1,238 | $ | 1,170 | 5.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Florida | 95.7 | % | 94.8 | % | 0.9 | % | 1,442 | 1,433 | 0.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Texas | 92.2 | % | 92.3 | % | (0.1) | % | 1,213 | 1,227 | (1.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ohio | 94.6 | % | 97.5 | % | (3.0) | % | 1,135 | 1,055 | 7.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Virginia | 95.3 | % | 95.3 | % | 0.0 | % | 1,632 | 1,639 | (0.4) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
North Carolina | 94.0 | % | 96.5 | % | (2.6) | % | 1,277 | 1,171 | 9.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
South Carolina | 94.8 | % | 96.0 | % | (1.3) | % | 1,443 | 1,319 | 9.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Alabama | 93.6 | % | 92.6 | % | 1.1 | % | 1,195 | 1,126 | 6.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Missouri | 95.6 | % | 91.4 | % | 4.6 | % | 1,718 | 1,678 | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Mississippi | 95.0 | % | 95.3 | % | (0.3) | % | 1,297 | 1,210 | 7.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tennessee | 92.0 | % | 94.9 | % | (3.1) | % | 1,688 | 1,648 | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average | 93.5 | % | 94.6 | % | (1.1) | % | $ | 1,362 | $ | 1,306 | 4.3 | % |
__________________________________________________
(1) See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
(2) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI under "Non-GAAP Financial Measures and
Definitions."
22
BRT Apartments Corp. (NYSE: BRT)
Consolidated Same Store Comparisons (1)
Twelve months ended December 31, 2023 and 2022
(dollars in thousands, except monthly rent amounts)
____________________________________________________________________________________________________________________
Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Units | 2023 | 2022 | % Change | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Georgia | 448 | $ | 7,748 | $ | 7,388 | 4.9 | % | $ | 3,593 | $ | 3,253 | 10.5 | % | $ | 4,155 | $ | 4,135 | 0.5 | % | |||||||||||||||||||||||||||||||||||||||||||
Florida | 276 | 5,306 | 5,104 | 4.0 | % | 2,386 | 1,980 | 20.5 | % | 2,920 | 3,124 | (6.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Texas | 192 | 3,310 | 3,070 | 7.8 | % | 1,730 | 1,542 | 12.2 | % | 1,580 | 1,528 | 3.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Ohio | 264 | 3,750 | 3,564 | 5.2 | % | 1,639 | 1,443 | 13.6 | % | 2,111 | 2,121 | (0.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Virginia | 220 | 4,586 | 4,556 | 0.7 | % | 1,833 | 1,670 | 9.8 | % | 2,753 | 2,886 | (4.6) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Tennessee | 702 | 14,088 | 13,812 | 2.0 | % | 6,023 | 5,925 | 1.7 | % | 8,065 | 7,887 | 2.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
South Carolina | 474 | 8,586 | 8,110 | 5.9 | % | 4,477 | 4,053 | 10.5 | % | 4,109 | 4,057 | 1.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Totals | 2,576 | $ | 47,374 | $ | 45,604 | 3.9 | % | $ | 21,681 | $ | 19,866 | 9.1 | % | $ | 25,693 | $ | 25,738 | (0.2) | % | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Georgia | 93.1 | % | 96.9 | % | (3.9) | % | $ | 1,376 | $ | 1,254 | 9.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Florida | 95.0 | % | 96.3 | % | (1.3) | % | 1,518 | 1,438 | 5.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Texas | 94.8 | % | 95.9 | % | (1.1) | % | 1,310 | 1,209 | 8.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ohio | 96.5 | % | 97.3 | % | (0.8) | % | 1,104 | 1,031 | 7.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Virginia | 95.8 | % | 97.4 | % | (1.6) | % | 1,623 | 1,593 | 1.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tennessee | 93.5 | % | 96.8 | % | (3.4) | % | 1,641 | 1,569 | 4.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
South Carolina | 95.2 | % | 97.0 | % | (1.9) | % | 1,407 | 1,292 | 8.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average | 94.5 | % | 96.8 | % | (2.4) | % | $ | 1,457 | $ | 1,369 | 6.4 | % |
________________________________________
(1) See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
(2) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI
under "Non-GAAP Financial Measures and Definitions."
23
BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons (1)
Quarters ended December 31, 2023 and 2022
BRT Pro-rata Share
(dollars in thousands, except monthly rent amounts)
________________________________________________________________________________________
Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Units | 2023 | 2022 | % Change | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Texas | 1,103 | $ | 2,652 | $ | 2,585 | 2.6 | % | $ | 1,162 | $ | 1,284 | (9.5) | % | $ | 1,490 | $ | 1,301 | 14.5 | % | |||||||||||||||||||||||||||||||||||||||||||
Georgia | 271 | 956 | 926 | 3.2 | % | 432 | 491 | (12.0) | % | 523 | 435 | 20.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
South Carolina | 713 | 1,279 | 1,234 | 3.6 | % | 443 | 407 | 8.8 | % | 836 | 827 | 1.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Alabama | 200 | 572 | 541 | 5.7 | % | 270 | 236 | 14.4 | % | 302 | 305 | (1.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Totals | 2,287 | $ | 5,459 | $ | 5,286 | 3.3 | % | $ | 2,307 | $ | 2,418 | (4.6) | % | $ | 3,152 | $ | 2,868 | 9.9 | % | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Texas | 91.8 | % | 93.9 | % | (2.2) | % | $ | 1,551 | $ | 1,491 | 4.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Georgia | 94.8 | % | 95.2 | % | (0.4) | % | 1,542 | 1,468 | 5.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
South Carolina | 93.5 | % | 93.7 | % | (0.2) | % | 1,530 | 1,463 | 4.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Alabama | 96.0 | % | 98.3 | % | (2.3) | % | 1,117 | 1,020 | 9.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average | 93.0 | % | 94.4 | % | (1.5) | % | $ | 1,504 | $ | 1,437 | 4.7 | % |
________________________________________
(1) See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
(2) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI and pro-rata share under "Non-GAAP Financial
Measures and Definitions."
24
BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons (1)
Twelve months ended December 31, 2023 and 2022
BRT Pro-rata Share
(dollars in thousands, except monthly rent amounts)
_______________________________________________________________________________________
Revenues | Property Operating Expenses | NOI (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Units | 2023 | 2022 | % Change | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Texas | 1,103 | $ | 10,488 | $ | 10,006 | 4.8 | % | $ | 5,040 | $ | 4,784 | 5.4 | % | $ | 5,448 | $ | 5,222 | 4.3 | % | |||||||||||||||||||||||||||||||||||||||||||
Georgia | 271 | 3,813 | 3,526 | 8.1 | % | 1,830 | 1,661 | 10.2 | % | 1,983 | 1,865 | 6.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
South Carolina | 713 | 5,112 | 4,854 | 5.3 | % | 1,846 | 1,738 | 6.2 | % | 3,266 | 3,116 | 4.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Alabama | 200 | 2,238 | 2,064 | 8.4 | % | 1,115 | 983 | 13.4 | % | 1,123 | 1,081 | 3.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Totals | 2,287 | $ | 21,651 | $ | 20,450 | 5.9 | % | $ | 9,831 | $ | 9,166 | 7.3 | % | $ | 11,820 | $ | 11,284 | 4.8 | % | |||||||||||||||||||||||||||||||||||||||||||
Weighted Average Occupancy | Weighted Average Monthly Rent per Occupied Unit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Texas | 92.3 | % | 95.2 | % | (3.0) | % | $ | 1,530 | $ | 1,415 | 8.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Georgia | 95.8 | % | 94.1 | % | 1.8 | % | 1,507 | 1,405 | 7.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
South Carolina | 94.0 | % | 96.1 | % | (2.2) | % | 1,488 | 1,391 | 7.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Alabama | 97.5 | % | 97.7 | % | (0.2) | % | 1,073 | 983 | 9.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average | 93.7 | % | 95.6 | % | (2.0) | % | $ | 1,473 | $ | 1,368 | 7.7 | % |
________________________________________
(1) See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
(2) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI and pro-rata share under "Non-GAAP Financial
Measures and Definitions."
25
BRT Apartments Corp. (NYSE: BRT)
Buyout NOI by State
Twelve Months Ended December 31, 2023 and 2022 (1)
Assuming 100% Ownership
(dollars in thousands)
________________________________________________________________________________________
Twelve months Ended December 31, | ||||||||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
Revenues | Expenses | NOI | Revenues | Expenses | NOI | |||||||||||||||||||||||||||||||||
Alabama | $ | 11,194 | $ | 4,870 | $ | 6,324 | $ | 10,489 | $ | 4,456 | $ | 6,033 | ||||||||||||||||||||||||||
Florida | 4,122 | 2,172 | 1,950 | 3,817 | 1,854 | 1,963 | ||||||||||||||||||||||||||||||||
Georgia | 2,823 | 1,439 | 1,384 | 2,699 | 1,429 | 1,270 | ||||||||||||||||||||||||||||||||
Mississippi | 12,185 | 4,250 | 7,935 | 11,224 | 4,142 | 7,082 | ||||||||||||||||||||||||||||||||
Missouri | 3,802 | 1,683 | 2,119 | 3,546 | 1,479 | 2,067 | ||||||||||||||||||||||||||||||||
North Carolina | 4,168 | 1,659 | 2,509 | 3,807 | 1,495 | 2,312 | ||||||||||||||||||||||||||||||||
Texas | 5,921 | 3,586 | 2,335 | 6,249 | 3,159 | 3,090 | ||||||||||||||||||||||||||||||||
Totals | $ | 44,215 | $ | 19,659 | $ | 24,556 | $ | 41,831 | $ | 18,014 | $ | 23,817 |
_______________________________________
(1) There was no buyout activity during the three months ended December 31, 2023 and 2022.
26
BRT Apartments Corp. (NYSE: BRT)
Buyout NOI Reconciliation
Twelve Months Ended December 31, 2023 and 2022 (1)
Assuming 100% Ownership for 2022
(dollars in thousands)
________________________________________________________________________________________
Twelve months Ended December 31, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
Net Income | $ | 3,873 | $ | 49,955 | ||||||||||||||||||||||
Less: Equity in earnings from JV | (17,037) | (66,426) | ||||||||||||||||||||||||
Add: Net income from unconsolidated JV | 42,585 | 121,187 | ||||||||||||||||||||||||
Less: Other income | (548) | (12) | ||||||||||||||||||||||||
Add: Interest Expense | 22,161 | 15,514 | ||||||||||||||||||||||||
General and administrative | 15,433 | 14,654 | ||||||||||||||||||||||||
Impairment Charge | — | 8,553 | ||||||||||||||||||||||||
Depreciation and amortization | 28,484 | 24,812 | ||||||||||||||||||||||||
Provision for taxes | 54 | 821 | ||||||||||||||||||||||||
Loss on Extinguishment of debt | — | 563 | ||||||||||||||||||||||||
Unconsolidated Interest Expense | 9,268 | 16,269 | ||||||||||||||||||||||||
Unconsolidated Depreciation | 10,403 | 17,798 | ||||||||||||||||||||||||
Unconsolidated Loss on Extinguishment of debt | 561 | 3,491 | ||||||||||||||||||||||||
Less: Gain on sale of real estate | (604) | (6) | ||||||||||||||||||||||||
Casualty loss | 323 | 850 | ||||||||||||||||||||||||
Insurance recovery | (793) | (850) | ||||||||||||||||||||||||
Gain on insurance recoveries | (240) | (62) | ||||||||||||||||||||||||
Unconsolidated Insurance Recovery | — | (8,553) | ||||||||||||||||||||||||
Unconsolidated Gain on Insurance Recoveries | (65) | (567) | ||||||||||||||||||||||||
Unconsolidated Gain on Sale | (38,418) | (118,270) | ||||||||||||||||||||||||
Unconsolidated Other equity earnings | (126) | (121) | ||||||||||||||||||||||||
Add: Net loss attributable to non-controlling interests | 142 | 144 | ||||||||||||||||||||||||
Net Operating Income | 75,456 | 79,744 | ||||||||||||||||||||||||
Less: Non-buyout net operating income | 50,900 | 55,927 | ||||||||||||||||||||||||
Buyout Net Operating Income | $ | 24,556 | $ | 23,817 |
_______________________________________
(1) There was no buyout activity during the three months ended December 31, 2023 and 2022.
27
BRT Apartments Corp. (NYSE: BRT)
RECONCILIATIONS
(dollars in thousands)
________________________________________________________________________________________
The following tables provides a reconciliation of NOI to net income attributable to common stockholders as computed in accordance with GAAP for the periods presented for the consolidated properties:
Consolidated | Three months ended December 31, | Twelve months Ended December 31, | ||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
GAAP Net (loss) income attributable to common stockholders | $ | (1,737) | $ | (4,219) | $ | 3,873 | $ | 49,955 | ||||||||||||||||||
Less: Other Income | (143) | — | (548) | (12) | ||||||||||||||||||||||
Add: Interest expense | 5,584 | 5,520 | 22,161 | 15,514 | ||||||||||||||||||||||
General and administrative | 3,513 | 3,815 | 15,433 | 14,654 | ||||||||||||||||||||||
Depreciation and amortization | 6,389 | 8,031 | 28,484 | 24,812 | ||||||||||||||||||||||
Impairment charge | — | — | — | — | ||||||||||||||||||||||
Provision for taxes | 49 | (155) | 54 | 821 | ||||||||||||||||||||||
Less: Gain on sale of real estate | — | — | (604) | (6) | ||||||||||||||||||||||
Add: Loss on extinguishment of debt | — | — | — | 563 | ||||||||||||||||||||||
Equity in (earnings) loss of unconsolidated joint venture properties | (588) | (580) | (2,293) | (1,895) | ||||||||||||||||||||||
Casualty loss | 323 | 850 | 323 | 850 | ||||||||||||||||||||||
Less: Equity in earnings from sale of unconsolidated joint venture properties | — | — | (14,744) | (64,531) | ||||||||||||||||||||||
Insurance recovery of casualty loss | (317) | (850) | (793) | (850) | ||||||||||||||||||||||
Gain on insurance recovery | — | — | (240) | (62) | ||||||||||||||||||||||
Add: Net loss attributable to non-controlling interests | 36 | 37 | 142 | 144 | ||||||||||||||||||||||
Net Operating Income | $ | 13,109 | $ | 12,449 | $ | 51,248 | $ | 39,957 | ||||||||||||||||||
Less: Non-same store and non- multi -family Net Operating Income | 258 | 272 | 25,555 | 14,219 | ||||||||||||||||||||||
Same store Net Operating Income | $ | 12,851 | $ | 12,177 | $ | 25,693 | $ | 25,738 |
28
BRT Apartments Corp. (NYSE: BRT)
RECONCILIATIONS
(dollars in thousands)
________________________________________________________________________________________
The following tables provides a reconciliation of BRT's Equity in earnings from NOI to net income attributable to common stockholders as computed in accordance with GAAP for the periods presented for BRT's pro rata share of the unconsolidated properties:
Unconsolidated | Three months ended December 31, | Twelve months Ended December 31, | ||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
BRT equity in earnings from joint ventures | $ | 588 | $ | 580 | $ | 17,037 | $ | 66,426 | ||||||||||||||||||
Add: Interest expense | 1,131 | 1,280 | 4,738 | 9,872 | ||||||||||||||||||||||
Depreciation | 1,307 | 1,443 | 5,291 | 10,677 | ||||||||||||||||||||||
Loss on extinguishment of debt | — | — | 212 | 1,876 | ||||||||||||||||||||||
Impairment of assets | — | 1,493 | — | 1,493 | ||||||||||||||||||||||
Less: Gain on sale of real estate | — | — | (14,744) | (64,531) | ||||||||||||||||||||||
Other equity earnings | (8) | (32) | (127) | (121) | ||||||||||||||||||||||
Insurance recoveries | — | (1,493) | — | (1,493) | ||||||||||||||||||||||
Gain on sale of insurance recoveries | — | — | (30) | (428) | ||||||||||||||||||||||
Net Operating Income | $ | 3,018 | $ | 3,271 | $ | 12,377 | $ | 23,771 | ||||||||||||||||||
Less: Non-same store Net Operating Income | (134) | 403 | 557 | 12,487 | ||||||||||||||||||||||
Same store Net Operating Income | $ | 3,152 | $ | 2,868 | $ | 11,820 | $ | 11,284 | ||||||||||||||||||
Consolidated same store Net Operating Income | $ | 12,851 | $ | 12,177 | $ | 25,693 | $ | 25,738 | ||||||||||||||||||
Unconsolidated same store Net Operating Income | 3,152 | 2,868 | 11,820 | 11,284 | ||||||||||||||||||||||
Buyout Net Operating Income | — | — | 24,556 | 23,817 | ||||||||||||||||||||||
Combined Portfolio Net Operating Income | $ | 16,003 | $ | 15,045 | $ | 62,069 | $ | 60,839 |
29
BRT Apartments Corp. (NYSE: BRT)
RECONCILIATIONS
(dollars in thousands)
_____________________________________________________________________________________________________________________
The condensed income statements for the unconsolidated properties below, for the three months ended December 31, 2023 and 2022, presents BRT's pro-rata information.
Three months ended December 31, 2023 | |||||||||||||||||||||||||||||
Total | Partner Share | BRT Share | |||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Rental and other revenue | $ | 10,541 | $ | 5,096 | $ | 5,445 | |||||||||||||||||||||||
Total revenues | 10,541 | 5,096 | 5,445 | ||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||
Real estate operating expenses | 4,742 | 2,315 | 2,427 | ||||||||||||||||||||||||||
Interest expense | 2,211 | 1,080 | 1,131 | ||||||||||||||||||||||||||
Depreciation | 2,570 | 1,263 | 1,307 | ||||||||||||||||||||||||||
Total expenses | 9,523 | 4,658 | 4,865 | ||||||||||||||||||||||||||
Total revenues less total expenses | 1,018 | 438 | 580 | ||||||||||||||||||||||||||
Equity in earnings of joint ventures | 7 | (1) | 8 | ||||||||||||||||||||||||||
Net income | $ | 1,025 | $ | 437 | $ | 588 | (1) |
Three Months Ended December 31, 2022 | |||||||||||||||||||||||
Total | Partner Share | BRT Share | |||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental and other revenue | $ | 12,033 | $ | 5,861 | $ | 6,172 | |||||||||||||||||
Total revenues | 12,033 | 5,861 | 6,172 | ||||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Real estate operating expenses | 5,563 | 2,662 | 2,901 | ||||||||||||||||||||
Interest expense | 2,507 | 1,227 | 1,280 | ||||||||||||||||||||
Depreciation | 2,841 | 1,398 | 1,443 | ||||||||||||||||||||
Total expenses | 10,911 | 5,287 | 5,624 | ||||||||||||||||||||
Total revenues less total expenses | 1,122 | 574 | 548 | ||||||||||||||||||||
Equity in earnings of joint ventures | 32 | — | 32 | ||||||||||||||||||||
Impairment of assets | (8,553) | (7,060) | (1,493) | ||||||||||||||||||||
Insurance recoveries | 8,553 | 7,060 | 1,493 | ||||||||||||||||||||
Net loss | $ | 1,154 | $ | 574 | $ | 580 | (1) |
(1) Reflects BRT's share as determined in accordance with GAAP - not its pro-rata share
30
BRT Apartments Corp. (NYSE: BRT)
RECONCILIATIONS
(dollars in thousands)
_____________________________________________________________________________________________________________________
The condensed income statements below present for the periods indicated a reconciliation of the information that appears in note 6 of BRT's Annual Report on Form 10-K to the BRT pro rata information presented here in this supplemental.
Twelve months Ended December 31, 2023 | ||||||||||||||||||||
Total | Partner Share | BRT Share | ||||||||||||||||||
Revenues: | ||||||||||||||||||||
Rental and other revenue | $ | 44,785 | $ | 21,706 | $ | 23,079 | ||||||||||||||
Total revenues | 44,785 | 21,706 | 23,079 | |||||||||||||||||
Expenses: | ||||||||||||||||||||
Real estate operating expenses | 20,577 | 9,875 | 10,702 | |||||||||||||||||
Interest expense | 9,268 | 4,530 | 4,738 | |||||||||||||||||
Depreciation | 10,403 | 5,112 | 5,291 | |||||||||||||||||
Total expenses | 40,248 | 19,517 | 20,731 | |||||||||||||||||
Total revenues less total expenses | 4,537 | 2,189 | 2,348 | |||||||||||||||||
Equity in earnings of joint ventures | 126 | (1) | 127 | |||||||||||||||||
Gain on insurance recoveries | 65 | 35 | 30 | |||||||||||||||||
Gain on sale of real estate properties | 38,418 | 23,674 | 14,744 | |||||||||||||||||
Loss on extinguishment of debt | (561) | (349) | (212) | |||||||||||||||||
Net income | $ | 42,585 | $ | 25,548 | $ | 17,037 |
Twelve months Ended December 31, 2022 | ||||||||||||||||||||
Total | Partner Share | BRT Share | ||||||||||||||||||
Revenues: | ||||||||||||||||||||
Rental and other revenue | $ | 72,873 | $ | 29,101 | $ | 43,772 | ||||||||||||||
Total revenues | 72,873 | 29,101 | 43,772 | |||||||||||||||||
Expenses: | ||||||||||||||||||||
Real estate operating expenses | 33,086 | 13,085 | 20,001 | |||||||||||||||||
Interest expense | 16,269 | 6,397 | 9,872 | |||||||||||||||||
Depreciation | 17,798 | 7,121 | 10,677 | |||||||||||||||||
Total expenses | 67,153 | 26,603 | 40,550 | |||||||||||||||||
Total revenues less total expenses | 5,720 | 2,498 | 3,222 | |||||||||||||||||
Equity in earnings of joint ventures | 121 | — | 121 | |||||||||||||||||
Impairment of assets | (8,553) | (7,060) | (1,493) | |||||||||||||||||
Insurance recoveries | 8,553 | 7,060 | 1,493 | |||||||||||||||||
Gain on insurance recoveries | 567 | 139 | 428 | |||||||||||||||||
Gain on sale of real estate properties | 118,270 | 53,739 | 64,531 | |||||||||||||||||
Loss on extinguishment of debt | (3,491) | (1,615) | (1,876) | |||||||||||||||||
Net loss | $ | 121,187 | $ | 54,761 | $ | 66,426 |
31
BRT Apartments Corp. (NYSE: BRT)
Balance Sheet of Unconsolidated Joint Ventures
(dollars in thousands)
_____________________________________________________________________________________________________________________
The condensed balance sheet below at December 31, 2023, represent a reconciliation of the information that appears in note 6 of BRT's Annual Report on Form 10-K to the BRT pro rata information presented here in the supplemental. The Company held interests in unconsolidated joint ventures that own seven multi-family properties and a planned 240-unit development property, now substantially complete (the "Unconsolidated Properties"). The condensed balance sheet below presents information regarding such properties (dollars in thousands):
December 31, 2023 | ||||||||||||||||||||
TOTAL | BRT Share | Partner Share | ||||||||||||||||||
ASSETS | ||||||||||||||||||||
Real estate properties, net of accumulated depreciation | $ | 275,874 | $ | 138,753 | $ | 137,121 | ||||||||||||||
Cash and cash equivalents | 6,447 | 2,719 | 3,728 | |||||||||||||||||
Other assets | 54,715 | 12,504 | 42,211 | |||||||||||||||||
Total Assets | $ | 337,036 | $ | 153,976 | $ | 183,060 | ||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Mortgages payable, net of deferred costs | 246,966 | 116,104 | 130,862 | |||||||||||||||||
Accounts payable and accrued liabilities | 8,751 | 3,872 | 4,879 | |||||||||||||||||
Total Liabilities | 255,717 | 119,976 | 135,741 | |||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Equity: | ||||||||||||||||||||
Total unconsolidated joint venture equity | 81,319 | 34,000 | 47,319 | |||||||||||||||||
Total Liabilities and Equity | $ | 337,036 | $ | 153,976 | $ | 183,060 | ||||||||||||||
32