COVER
COVER - shares | 3 Months Ended | |
Mar. 31, 2024 | May 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | 18,640,528 | |
Amendment Flag | false | |
Entity Central Index Key | 0000014846 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Real estate properties, net of accumulated depreciation and amortization of $86,934 and $80,499 | $ 631,001 | $ 635,836 |
Investments in unconsolidated joint ventures | 32,953 | 34,242 |
Cash and cash equivalents | 21,252 | 23,512 |
Restricted cash | 589 | 632 |
Other assets | 13,690 | 15,741 |
Total Assets | 699,485 | 709,963 |
Liabilities: | ||
Mortgages payable, net of deferred costs of $3,797 and $4,009 | 421,835 | 422,427 |
Junior subordinated notes, net of deferred costs of $252 and $257 | 37,148 | 37,143 |
Credit facility | 0 | 0 |
Accounts payable and accrued liabilities | 19,888 | 21,948 |
Total Liabilities | 478,871 | 481,518 |
Commitments and contingencies | ||
BRT Apartments Corp. stockholders' equity: | ||
Preferred shares $0.01 par value 2,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $0.01 par value, 300,000 shares authorized; 17,620 and 17,536 shares outstanding | 176 | 175 |
Additional paid-in capital | 267,276 | 267,271 |
Accumulated deficit | (46,798) | (38,986) |
Total BRT Apartments Corp. stockholders’ equity | 220,654 | 228,460 |
Non-controlling interest | (40) | (15) |
Total Equity | 220,614 | 228,445 |
Total Liabilities and Equity | $ 699,485 | $ 709,963 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Real estate accumulated depreciation | $ 86,934 | $ 80,499 |
Deferred costs | $ 4,049 | $ 4,266 |
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares, authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred shares, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, outstanding (in shares) | 17,620,000 | 17,536,000 |
Mortgages payable | ||
Debt Instrument [Line Items] | ||
Deferred costs | $ 3,797 | $ 4,009 |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Deferred costs | $ 252 | $ 257 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Rental and other revenue from real estate properties | $ 23,298 | $ 22,939 |
Interest and other income | 105 | 0 |
Total revenues | 23,403 | 22,939 |
Expenses: | ||
Real estate operating expenses - including $9 and $6 to related parties | 10,579 | 10,434 |
Interest expense | 5,523 | 5,483 |
General and administrative - including $182 and $173 to related parties | 4,152 | 4,055 |
Depreciation and amortization | 6,435 | 8,008 |
Total expenses | 26,689 | 27,980 |
Total revenues less total expenses | (3,286) | (5,041) |
Equity in earnings of unconsolidated joint ventures | 228 | 815 |
Gain on insurance recoveries | 0 | 240 |
Loss from continuing operations | (3,058) | (3,986) |
Income tax provision | 78 | 76 |
Loss from continuing operations, net of taxes | (3,136) | (4,062) |
Net income attributable to non-controlling interest | (35) | (36) |
Net loss attributable to common stockholders | $ (3,171) | $ (4,098) |
Weighted average number of shares of common stock outstanding: | ||
Basic (in shares) | 17,625,577 | 18,064,301 |
Diluted (in shares) | 17,625,577 | 18,064,301 |
Per share amounts attributable to common stockholders: | ||
Basic (in dollars per share) | $ (0.17) | $ (0.21) |
Diluted (in dollars per share) | $ (0.17) | $ (0.21) |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Real estate operating expenses | $ 10,579 | $ 10,434 |
General and administrative | 4,152 | 4,055 |
Related Party | ||
Real estate operating expenses | 9 | 6 |
General and administrative | $ 182 | $ 173 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Shares of Common Stock | Additional Paid-In Capital | (Accumulated Deficit) | Non- Controlling Interest |
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 | (4,062) | (4,098) | 36 | ||
Ending balance at Mar. 31, 2023 | 243,334 | 182 | 276,034 | (32,900) | 18 |
Beginning balance at Dec. 31, 2023 | 228,445 | 175 | 267,271 | (38,986) | (15) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Distributions - common stock | (4,641) | (4,641) | |||
Restricted stock and restricted stock units vesting | 0 | 2 | (2) | ||
Compensation expense - restricted stock and restricted stock units | 1,342 | 1,342 | |||
Distributions to non-controlling interests | (60) | (60) | |||
Shares issued through DRIP | 931 | 931 | |||
Shares repurchased | (2,267) | (1) | (2,266) | ||
Net loss | (3,136) | (3,171) | 35 | ||
Ending balance at Mar. 31, 2024 | $ 220,614 | $ 176 | $ 267,276 | $ (46,798) | $ (40) |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.25 | $ 0.23 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (3,136) | $ (4,062) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 6,435 | 8,008 |
Amortization of deferred financing costs | 271 | 252 |
Amortization of debt fair value adjustment | 143 | 157 |
Amortization of restricted stock and restricted stock units | 1,342 | 1,410 |
Equity in earnings of unconsolidated joint ventures | (228) | (815) |
Increases and decreases from changes in other assets and liabilities: | ||
Increase in other assets | (2,097) | (2,201) |
Decrease in accounts payable and accrued liabilities | (2,077) | (2,538) |
Net cash provided by operating activities | 653 | 211 |
Cash flows from investing activities: | ||
Improvements to real estate properties | (1,600) | (2,158) |
Distributions from unconsolidated joint ventures | 1,517 | 2,228 |
Net cash (used in) provided by investing activities | (83) | 70 |
Cash flows from financing activities: | ||
Proceeds from mortgages payable | 0 | 21,173 |
Mortgage principal payments | (947) | (813) |
Repayment of credit facility | 0 | (19,000) |
Increase in deferred financing costs | 0 | (683) |
Dividends paid | (4,624) | (9,521) |
Distributions to non-controlling interests | (60) | 0 |
Proceeds from issuance of DRIP shares | 931 | 763 |
Repurchase of shares of common stock | (2,267) | 0 |
Net cash used in financing activities | (6,967) | (8,081) |
Net increase in cash, cash equivalents, restricted cash and escrows: | (6,397) | (7,800) |
Cash, cash equivalents, restricted cash and escrows at beginning of period | 31,775 | 27,721 |
Cash, cash equivalents, restricted cash and escrows at ending of period | 25,378 | 19,921 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest expense | 5,117 | 5,094 |
Cash paid for income taxes and excise taxes | 7 | 8 |
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 | 21,252 | 15,252 |
Restricted cash | 589 | 830 |
Escrows (Other assets) | 3,537 | 3,839 |
Total cash, cash equivalents, restricted cash and escrows shown in consolidated statement of cash flows | $ 25,378 | $ 19,921 |
Organization and Background
Organization and Background | 3 Months Ended |
Mar. 31, 2024 | |
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 interests 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 contributed a significant portion of the equity. At March 31, 2024, 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 $629,190,000; (ii) has interests, through unconsolidated entities, in eight multi-family properties located in four states with an aggregate of 2,527 units with a carrying value of $32,943,000; and (iii) owns other assets, through consolidated and unconsolidated subsidiaries, with a carrying value of $1,821,000. 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, 2024 | |
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, 2024 and 2023, are not necessarily indicative of the results for the full year. The consolidated audited balance sheet as of December 31, 2023, 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, 2023 (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 Company reviews each real estate asset owned, including those held through investments in unconsolidated joint ventures, for impairment when there is an event or a change in circumstances indicating that the carrying amount may not be recoverable. The Company measures and records impairment charges, and reduces the carrying value of owned properties, when indicators of impairment are present and the expected undiscounted cash flows related to those properties are less than their carrying amounts. For its unconsolidated joint venture investments, the Company measures and records impairment losses, and reduces the carrying value of the equity investment when indicators of impairment are present and the expected discounted cash flows related to the investment is less than the carrying value. When the Company does not expect to recover its carrying value on properties held for use, the Company reduces its carrying value to fair value, and for properties held for sale, the Company reduces its carrying value to the fair value less costs to sell. When the Company does not expect to recover its carrying value on unconsolidated joint ventures that are under contract for sale, the Company, when it is determined that the sale is probable, reduces its carrying value to its fair value. 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. The Company’s Chief Operating Decision Makers (“CODMs”) are its Chief Executive Officer and Chief Operating Officer. As the Company operates in one reportable segment, the CODMs are provided financial reports which include a (i) consolidated income statement (detailing total revenues, operating income and net income) and (iii) Funds from Operations (“FFO”) and Adjusted Funds from Operations (“AFFO”). These financial reports assist the CODMs in assessing the Company’s financial performance and in allocating resources appropriately. Reclassifications Immaterial Error Correction During the preparation of financial statements for the current period, it was determined that we were not correctly including the escrow accounts classified within other assets within cash flows from operating activities on the Consolidated Statements of Cash Flows. As a result, we have made an immaterial error correction to the prior period to reclassify the escrows within Cash and Restricted Cash on the Statement of Cash Flows resulting in an increase in net cash from operating activities of $2,729,000. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Equity | Equity Equity Distribution Agreements The Company has 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, 2024 and 2023, the Company did not sell any shares. Common Stock Dividend Distribution The Company declared a quarterly cash distribution of $0.25 per share, payable on April 4, 2024 to stockholders of record on March 27, 2024. Dividend Reinvestment Plan The Dividend Reinvestment Plan (the “DRP”), 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%. During the three months ended March 31, 2024, 50,951 shares were issued in lieu of cash dividends of $931,000. During the three months ended March 31, 2023, 40,218 shares were issued 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, 2024, 245,049 shares are available for issuance pursuant to awards under the 2022 Plan. Restricted shares and awards to acquire 632,446 shares of common stock are outstanding under the 2020 Amended and Restated Incentive Plan ("2020 Plan") and the 2018 Amended and Restated Incentive Plan (collectively the "Prior Plans") and no further awards may be made pursuant to the Prior Plans. Restricted Stock Units In July 2023, the Company issued restricted stock units (the "RSUs") to acquire up to 214,990 shares of common stock pursuant to the 2022 Incentive Plan. As of March 31, 2024 , an aggregate of 634,491 of unvested restricted stock units are outstanding pursuant to the 2022 Plan and Prior Plans. 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 performance 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. At March 31, 2024, the conditions to the vesting and issuance of 123,384 shares of common stock subject to RSUs (of the 209,322 shares subject to RSUs granted in 2021 and the payout of $359,000 pursuant to the related dividend equivalent rights),had been satisfied, subject to approval of the compensation committee of the Company’s board of directors. Such committee approved such issuance and payout on May 6, 2024 and it is anticipated that such shares will be issued in May 2024 .The balance of 85,938 RSUs granted in 2021 have been forfeited. Expense is recognized on the RSUs which the Company expects to vest over the applicable vesting period. For the three months ended March 31, 2024 and 2023, the Company recorded $472,000 and $514,000, 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, 2024 and December 31, 2023, $1,527,000 and $1,999,000 of compensation expense, respectively, has been deferred and will be charged to expense over the remaining vesting periods. Restricted Stock In January 2024 and 2023, the Company granted 166,439 and 163,914 shares, respectively, of restricted stock pursuant to the 2022 Plan and 2020 Plan, respectively. As of March 31, 2024 , an aggregate of 962,229 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, 2024 and 2023, the Company recorded $870,000 and $896,000, respectively, of compensation expense related to the amortization of unearned compensation with respect to the restricted stock awards. At March 31, 2024 and December 31, 2023, $9,703,000 and $7,484,000, respectively, has been deferred as unearned compensation and will be charged to expense over the remaining vesting periods of these restricted stock awards. The weighted average remaining vesting period of these shares of restricted stock is 2.7 years. Share Repurchase Pursuant to the Company’s repurchase program, as amended from time to time, the Company is authorized to repurchase shares of its common stock through open-market transactions, privately negotiated transactions, or otherwise. During the three months ended March 31, 2024, the Company repurchased 123,061 shares of common stock, respectively, at an average price per share of $18.43, for an aggregate cost of $2,267,000. As of March 31, 2024, the Company is authorized to repurchase up to $7,316,000 of shares through December 31, 2025. During the three months ended March 31, 2023, the Company did not repurchase any shares of common stock. Per Share Data Basic 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 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, 2024 2023 Numerator for basic and diluted earnings per share: Net loss $ (3,136) $ (4,062) Deduct net income attributable to non-controlling interests (35) (36) Deduct loss allocated to unvested restricted stock 165 260 Net loss available for common stockholders: basic and diluted $ (3,006) $ (3,838) Denominator for basic earnings per share: Weighted average number of common shares outstanding 17,625,577 18,064,301 Effect of dilutive securities: RSUs — — Denominator for diluted earnings per share: Weighted average number of shares 17,625,577 18,064,301 Earnings (loss) per common share, basic $ (0.17) $ (0.21) Earnings (loss) per common share, diluted $ (0.17) $ (0.21) |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases Lessor Accounting The Company owns a commercial building in Yonkers, NY leased to two retail 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 on June 30, 2045. There are no renewal options. As of March 31, 2024, the remaining lease term is 21.3 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, 2024, the remaining lease term, including renewal options deemed exercised, is 12.8 years. As of March 31, 2024, the Company's Right of Use ("ROU") assets and lease liabilities were $2,138,000 and $2,280,000, respectively. As of December 31, 2023, the Company's ROU assets and lease liabilities were $2,183,000 and $2,318,000, 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 in Yonkers, NY leased to two retail 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 on June 30, 2045. There are no renewal options. As of March 31, 2024, the remaining lease term is 21.3 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, 2024, the remaining lease term, including renewal options deemed exercised, is 12.8 years. As of March 31, 2024, the Company's Right of Use ("ROU") assets and lease liabilities were $2,138,000 and $2,280,000, respectively. As of December 31, 2023, the Company's ROU assets and lease liabilities were $2,183,000 and $2,318,000, 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, 2024 | |
Real Estate [Abstract] | |
Real Estate Properties | Real Estate Properties Real estate properties, consists of the following (dollars in thousands): March 31, 2024 December 31, 2023 Land $ 74,246 $ 74,246 Building 616,979 616,979 Building improvements 26,710 25,110 Real estate properties 717,935 716,335 Accumulated depreciation (86,934) (80,499) Total real estate properties, net $ 631,001 $ 635,836 A summary of real estate properties owned is as follows (dollars in thousands): December 31, 2023 Improvements Depreciation March 31, 2024 Multi-family $ 634,045 $ 1,600 $ (6,407) $ 629,238 Retail shopping center and other 1,791 — (28) 1,763 Total real estate properties $ 635,836 $ 1,600 $ (6,435) $ 631,001 |
Restricted Cash
Restricted Cash | 3 Months Ended |
Mar. 31, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash Restricted 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, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Ventures | Investment in Unconsolidated Ventures At March 31, 2024 and December 31, 2023, the Company held interests in unconsolidated joint ventures that own eight multi-family properties (the "Unconsolidated Properties"), respectively, and a property-in-development. The condensed balance sheets below present information regarding such properties (dollars in thousands): March 31, 2024 December 31, 2023 ASSETS Real estate properties, net of accumulated depreciation of $72,863 and $69,970 $ 311,569 $ 275,874 Cash and cash equivalents 5,769 6,447 Other assets (1) 17,677 54,715 Total Assets $ 335,015 $ 337,036 LIABILITIES AND EQUITY Liabilities: Mortgages payable, net of deferred costs of $1,061 and $1,135 $ 249,245 $ 246,966 Accounts payable and accrued liabilities 7,920 8,751 Total Liabilities 257,165 255,717 Commitments and contingencies Equity: Total unconsolidated joint venture equity 77,850 81,319 Total Liabilities and Equity $ 335,015 $ 337,036 BRT's interest in joint venture equity $ 32,953 $ 34,242 ______________________________________________________ (1) Includes $12,715and $46,508 of work -in-process related to the Stono Oaks development at March 31, 2024 and December 31, 2023 respectively. . At the indicated dates, real estate properties of the unconsolidated joint ventures consist of the following (dollars in thousands): March 31, 2024 December 31, 2023 Land $ 46,331 $ 46,331 Building 329,534 291,473 Building improvements 8,567 8,040 Real estate properties 384,432 345,844 Accumulated depreciation (72,863) (69,970) Total real estate properties, net $ 311,569 $ 275,874 At March 31, 2024 and December 31, 2023, the weighted average interest rate on the mortgages payable is 4.07% and 4.32%, respectively, and the weighted average remaining term to maturity is 4.8 years and 5.0 years, respectively. The condensed income statements below present information regarding the Unconsolidated Properties (dollars in thousands): Three Months Ended March 31, 2024 2023 Revenues: Rental and other revenue $ 10,624 $ 12,132 Total revenues 10,624 12,132 Expenses: Real estate operating expenses 5,446 5,675 Interest expense 2,778 2,455 Depreciation 2,893 2,707 Total expenses 11,117 10,837 Total revenues less total expenses (493) 1,295 Other equity earnings 18 113 Gain on insurance recoveries — 65 Net (loss) income $ (475) $ 1,473 BRT's equity in earnings $ 228 $ 815 |
Debt Obligations
Debt Obligations | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Debt obligations consist of the following (dollars in thousands): March 31, 2024 December 31, 2023 Mortgages payable $ 425,632 $ 426,436 Junior subordinated notes 37,400 37,400 Credit facility (1) — — Deferred financing costs (4,049) (4,266) Total debt obligations, net of deferred costs $ 458,983 $ 459,570 __________________________________________ (1) Excludes $236 and $289 of deferred financing costs which are reflected in other assets at March 31, 2024 and December 31, 2023 respectively.. Mortgages Payable At March 31, 2024, the weighted average interest rate on the Company's mortgage payables was 4.02% and the weighted average remaining term to maturity is 6.8 years. For the three months ended March 31, 2024 and 2023, interest expense, which includes amortization of deferred financing costs, was $4,699,000 and $4,546,000, respectively. . Credit Facility The Company's credit facility, as amended, 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 and matures in September 2025. Note 8 – Debt Obligations (continued) The interest rate on the credit facility, which adjusts monthly and is subject to a floor of 6.0%, equals one-month term SOFR plus 250 basis points. The interest rate in effect as of March 31, 2024 is 7.82%. There is an unused facility fee of 0.25% per annum on the total amount committed by VNB and unused by the Company. At March 31, 2024, the Company is in compliance in all material respects with its obligations under the facility. At March 31, 2024 and December 31, 2023, there was no outstanding balance on the facility and at each such date, $60,000,000 was available to be borrowed. Interest expense for the three months ended March 31, 2024 and 2023, was $92,000 and $300,000, respectively and includes amortization of deferred financing cost and unused fess of $92,000 and $83,000 respectively. The remaining deferred financing costs of $236,000 and $289,000, are recorded on the Consolidated balance sheets at March 31, 2024 and December 31, 2023, respectively. Junior Subordinated Notes At March 31, 2024 and December 31, 2023, the outstanding principal balance of the Company's junior subordinated notes was $37,400,000, before deferred financing costs of $252,000 and $257,000, respectively. The interest rate on outstanding balance resets quarterly and is equal to three month term SOFR + 2.26%. The interest rate in effect at March 31, 2024 and 2023 was 7.69% and 6.80%, respectively. The interest rate that will be in effect for the three months beginning May 1, 2024 is 7.59%. The notes mature April 30, 2036. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has retained certain of its executive officers and Fredric H. Gould, a director, among other things, to participate in the Company's multi-family property analysis and approval process (which includes service on an investment committee), provide investment advice, and provide long-term planning and consulting with executives and employees with respect to other business matters, as required. The aggregate fees incurred for these services in each of the three months ended March 31, 2024 and 2023 were $405,000 and $385,000, 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 $9,000 and $6,000 for the three months ended March 31, 2024 and 2023. 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, 2024 | |
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, 2024 and December 31, 2023, the estimated fair value of the notes is lower than their carrying value by approximately $3,577,000 and $3,613,000, respectively, based on a market interest rate of 8.60% and 8.60%, respectively. The Company values its junior subordinated notes using a discounted cash flow analysis on the expected cash flows of each instrument. Mortgages payable: At March 31, 2024, the estimated fair value of the Company’s mortgages payable is lower than their carrying value by approximately $39,019,000, assuming market interest rates between 5.20% and 6.55%. At December 31, 2023, the estimated fair value of the Company's mortgages payable was lower than their carrying value by approximately $34,195,000, assuming market interest rates between 4.88% and 6.23%. Market interest rates were determined using rates which the Company believes reflects institutional lender yield requirements at the balance sheet dates. The Company values its mortgages payable using a discounted cash flow analysis on the expected cash flows of each instrument. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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; |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements On January 1, 2024, the Company adopted the FASB ASU No. 2023-07, Segment Reporting – Improvements to Reportable Segments Disclosures , which enhances disclosures of significant segment expenses regularly provided to the chief operating decision maker. This adoption did not have any impact on its consolidated financial statements. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent events have been evaluated and any significant events, relative to our consolidated financial statements as of March 31, 2024, that warrant additional disclosure, have been included in the notes to the consolidated financial statements. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (3,171) | $ (4,098) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Preparation (Policies)
Basis of Preparation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023, are not necessarily indicative of the results for the full year. The consolidated audited balance sheet as of December 31, 2023, 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, 2023 (the "Annual Report") filed with the Securities and Exchange Commission ("SEC"). |
Consolidated Financial Statements | The consolidated financial statements include the accounts and operations of the Company and its wholly-owned subsidiaries. |
Variable Interest Entities | 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 Company reviews each real estate asset owned, including those held through investments in unconsolidated joint ventures, for impairment when there is an event or a change in circumstances indicating that the carrying amount may not be recoverable. The Company measures and records impairment charges, and reduces the carrying value of owned properties, when indicators of impairment are present and the expected undiscounted cash flows related to those properties are less than their carrying amounts. For its unconsolidated joint venture investments, the Company measures and records impairment losses, and reduces the carrying value of the equity investment when indicators of impairment are present and the expected discounted cash flows related to the investment is less than the carrying value. When the Company does not expect to recover its carrying value on properties held for use, the Company reduces its carrying value to fair value, and for properties held for sale, the Company reduces its carrying value to the fair value less costs to sell. When the Company does not expect to recover its carrying value on unconsolidated joint ventures that are under contract for sale, the Company, when it is determined that the sale is probable, reduces its carrying value to its fair value. |
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. |
Segment | The Company’s Chief Operating Decision Makers (“CODMs”) are its Chief Executive Officer and Chief Operating Officer. As the Company operates in one reportable segment, the CODMs are provided financial reports which include a (i) consolidated income statement (detailing total revenues, operating income and net income) and (iii) Funds from Operations (“FFO”) and Adjusted Funds from Operations (“AFFO”). These financial reports assist the CODMs in assessing the Company’s financial performance and in allocating resources appropriately. |
Reclassifications | Reclassifications Immaterial Error Correction During the preparation of financial statements for the current period, it was determined that we were not correctly including the escrow accounts classified within other assets within cash flows from operating activities on the Consolidated Statements of Cash Flows. As a result, we have made an immaterial error correction to the prior period to reclassify the escrows within Cash and Restricted Cash on the Statement of Cash Flows resulting in an increase in net cash from operating activities of $2,729,000. |
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. |
New Accounting Pronouncements | On January 1, 2024, the Company adopted the FASB ASU No. 2023-07, Segment Reporting – Improvements to Reportable Segments Disclosures , which enhances disclosures of significant segment expenses regularly provided to the chief operating decision maker. This adoption did not have any impact on its consolidated financial statements. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 Numerator for basic and diluted earnings per share: Net loss $ (3,136) $ (4,062) Deduct net income attributable to non-controlling interests (35) (36) Deduct loss allocated to unvested restricted stock 165 260 Net loss available for common stockholders: basic and diluted $ (3,006) $ (3,838) Denominator for basic earnings per share: Weighted average number of common shares outstanding 17,625,577 18,064,301 Effect of dilutive securities: RSUs — — Denominator for diluted earnings per share: Weighted average number of shares 17,625,577 18,064,301 Earnings (loss) per common share, basic $ (0.17) $ (0.21) Earnings (loss) per common share, diluted $ (0.17) $ (0.21) |
Real Estate Properties (Tables)
Real Estate Properties (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Real Estate [Abstract] | |
Schedule of Real Estate Properties Owned | Real estate properties, consists of the following (dollars in thousands): March 31, 2024 December 31, 2023 Land $ 74,246 $ 74,246 Building 616,979 616,979 Building improvements 26,710 25,110 Real estate properties 717,935 716,335 Accumulated depreciation (86,934) (80,499) Total real estate properties, net $ 631,001 $ 635,836 A summary of real estate properties owned is as follows (dollars in thousands): December 31, 2023 Improvements Depreciation March 31, 2024 Multi-family $ 634,045 $ 1,600 $ (6,407) $ 629,238 Retail shopping center and other 1,791 — (28) 1,763 Total real estate properties $ 635,836 $ 1,600 $ (6,435) $ 631,001 At the indicated dates, real estate properties of the unconsolidated joint ventures consist of the following (dollars in thousands): March 31, 2024 December 31, 2023 Land $ 46,331 $ 46,331 Building 329,534 291,473 Building improvements 8,567 8,040 Real estate properties 384,432 345,844 Accumulated depreciation (72,863) (69,970) Total real estate properties, net $ 311,569 $ 275,874 |
Investment in Unconsolidated _2
Investment in Unconsolidated Ventures (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 December 31, 2023 ASSETS Real estate properties, net of accumulated depreciation of $72,863 and $69,970 $ 311,569 $ 275,874 Cash and cash equivalents 5,769 6,447 Other assets (1) 17,677 54,715 Total Assets $ 335,015 $ 337,036 LIABILITIES AND EQUITY Liabilities: Mortgages payable, net of deferred costs of $1,061 and $1,135 $ 249,245 $ 246,966 Accounts payable and accrued liabilities 7,920 8,751 Total Liabilities 257,165 255,717 Commitments and contingencies Equity: Total unconsolidated joint venture equity 77,850 81,319 Total Liabilities and Equity $ 335,015 $ 337,036 BRT's interest in joint venture equity $ 32,953 $ 34,242 ______________________________________________________ (1) Includes $12,715and $46,508 of work -in-process related to the Stono Oaks development at March 31, 2024 and December 31, 2023 respectively. The condensed income statements below present information regarding the Unconsolidated Properties (dollars in thousands): Three Months Ended March 31, 2024 2023 Revenues: Rental and other revenue $ 10,624 $ 12,132 Total revenues 10,624 12,132 Expenses: Real estate operating expenses 5,446 5,675 Interest expense 2,778 2,455 Depreciation 2,893 2,707 Total expenses 11,117 10,837 Total revenues less total expenses (493) 1,295 Other equity earnings 18 113 Gain on insurance recoveries — 65 Net (loss) income $ (475) $ 1,473 BRT's equity in earnings $ 228 $ 815 |
Schedule of Real Estate Properties Owned | Real estate properties, consists of the following (dollars in thousands): March 31, 2024 December 31, 2023 Land $ 74,246 $ 74,246 Building 616,979 616,979 Building improvements 26,710 25,110 Real estate properties 717,935 716,335 Accumulated depreciation (86,934) (80,499) Total real estate properties, net $ 631,001 $ 635,836 A summary of real estate properties owned is as follows (dollars in thousands): December 31, 2023 Improvements Depreciation March 31, 2024 Multi-family $ 634,045 $ 1,600 $ (6,407) $ 629,238 Retail shopping center and other 1,791 — (28) 1,763 Total real estate properties $ 635,836 $ 1,600 $ (6,435) $ 631,001 At the indicated dates, real estate properties of the unconsolidated joint ventures consist of the following (dollars in thousands): March 31, 2024 December 31, 2023 Land $ 46,331 $ 46,331 Building 329,534 291,473 Building improvements 8,567 8,040 Real estate properties 384,432 345,844 Accumulated depreciation (72,863) (69,970) Total real estate properties, net $ 311,569 $ 275,874 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | Debt obligations consist of the following (dollars in thousands): March 31, 2024 December 31, 2023 Mortgages payable $ 425,632 $ 426,436 Junior subordinated notes 37,400 37,400 Credit facility (1) — — Deferred financing costs (4,049) (4,266) Total debt obligations, net of deferred costs $ 458,983 $ 459,570 __________________________________________ (1) Excludes $236 and $289 of deferred financing costs which are reflected in other assets at March 31, 2024 and December 31, 2023 respectively.. |
Organization and Background (De
Organization and Background (Details) $ in Thousands | Mar. 31, 2024 USD ($) multi-familyProperty state property_unit property | Dec. 31, 2023 USD ($) property |
Real Estate Properties [Line Items] | ||
Number of states | state | 11 | |
Number of units | property_unit | 5,420 | |
Real estate investment property, net | $ 631,001 | $ 635,836 |
Investments in unconsolidated joint ventures | $ 32,953 | $ 34,242 |
Unconsolidated Joint Ventures | ||
Real Estate Properties [Line Items] | ||
Number of properties | property | 8 | 8 |
Investments in unconsolidated joint ventures | $ 32,943 | |
Consolidated And Unconsolidated Subsidiaries | ||
Real Estate Properties [Line Items] | ||
Real estate investments, other | $ 1,821 | |
Unconsolidated Joint Ventures | ||
Real Estate Properties [Line Items] | ||
Number of states | state | 4 | |
Number of units | property_unit | 2,527 | |
Real estate investment property, net | $ 311,569 | $ 275,874 |
Number of investments | multi-familyProperty | 8 | |
Multi-family | ||
Real Estate Properties [Line Items] | ||
Number of properties | multi-familyProperty | 21 | |
Real estate investment property, net | $ 629,190 | |
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) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Number of reportable segments | segment | 1 | |
Net cash provided by operating activities | $ 653 | $ 211 |
Restatement Impact | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Net cash provided by operating activities | $ 2,729 |
Equity - Narrative (Details)
Equity - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 39 Months Ended | ||||
Jan. 31, 2024 shares | Jul. 31, 2023 shares | Jan. 31, 2023 shares | Mar. 31, 2024 USD ($) agent $ / shares shares | Mar. 31, 2023 USD ($) shares | Dec. 31, 2021 shares | Mar. 31, 2024 USD ($) agent shares | Dec. 31, 2023 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Dividends declared per share (in dollars per share) | $ / shares | $ 0.25 | |||||||
New Share Repurchase Program | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares repurchased (in shares) | 123,061 | 0 | ||||||
Treasury stock acquired, average cost per share (in dollars per share) | $ / shares | $ 18.43 | |||||||
Shares repurchased | $ | $ 2,267,000 | |||||||
Remaining under repurchase plan | $ | 7,316,000 | $ 7,316,000 | ||||||
Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation expense | $ | 472,000 | $ 514,000 | ||||||
Deferred unearned compensation | $ | 1,527,000 | 1,527,000 | $ 1,999,000 | |||||
Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation expense | $ | 870,000 | $ 896,000 | ||||||
Deferred unearned compensation | $ | $ 9,703,000 | $ 9,703,000 | $ 7,484,000 | |||||
Remaining weighted average vesting period | 2 years 8 months 12 days | |||||||
Dividend Reinvestment Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Discount from the market price | 3% | |||||||
Stock dividends (in shares) | 50,951 | 40,218 | ||||||
Cash dividends replaced by stock dividends | $ | $ 931,000 | $ 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) | 962,229 | 962,229 | ||||||
Incentive Plan 2022 And Prior Plans | Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares outstanding (in shares) | 634,491 | 634,491 | ||||||
Incentive Plan 2022 And Prior Plans | Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Issued (in shares) | 166,439 | 163,914 | ||||||
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) | 245,049 | 245,049 | ||||||
Shares outstanding (in shares) | 632,446 | 632,446 | ||||||
Incentive Plan 2022 | Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Issued (in shares) | 214,990 | |||||||
Vesting period for shares issued | 3 years | |||||||
Prior Plan | Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Issued (in shares) | 209,322 | |||||||
Vested in period (in shares) | 123,384 | |||||||
Payment for dividend equivalent rights | $ | $ 359,000 | |||||||
Shares forfeited in period (in shares) | 85,938 | |||||||
Private Placement | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of agents | agent | 3 | 3 | ||||||
Amount of stock authorized to sell | $ | $ 40,000,000 | $ 40,000,000 | ||||||
Shares sold in offering (in shares) | 0 | 0 |
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, 2024 | Mar. 31, 2023 | |
Numerator for basic and diluted earnings per share: | ||
Net loss | $ (3,136) | $ (4,062) |
Deduct net income attributable to non-controlling interests | (35) | (36) |
Deduct loss allocated to unvested restricted stock , basic | 165 | 260 |
Deduct loss allocated to unvested restricted stock , diluted | 165 | 260 |
Net loss available for common stockholders: basic | (3,006) | (3,838) |
Net loss available for common stockholders: diluted | $ (3,006) | $ (3,838) |
Denominator for basic earnings per share: | ||
Weighted average number of common shares outstanding (in shares) | 17,625,577 | 18,064,301 |
Effect of dilutive securities: | ||
RSUs (in shares) | 0 | 0 |
Denominator for diluted earnings per share: | ||
Weighted average number shares (in shares) | 17,625,577 | 18,064,301 |
Earnings (loss) per common share, basic (in dollars per share) | $ (0.17) | $ (0.21) |
Earnings (loss) per common share, diluted (in dollars per share) | $ (0.17) | $ (0.21) |
Leases (Details)
Leases (Details) $ in Thousands | Mar. 31, 2024 USD ($) tenant renewalOption | Dec. 31, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | ||
Lessor, number of tenants | tenant | 2 | |
Right-of-use asset | $ 2,138 | $ 2,183 |
Lease liability | $ 2,280 | $ 2,318 |
Ground Lease | Yonkers, NY | ||
Lessee, Lease, Description [Line Items] | ||
Number of renewals remaining | renewalOption | 0 | |
Remaining term | 21 years 3 months 18 days | |
Corporate Office | Great Neck, NY | ||
Lessee, Lease, Description [Line Items] | ||
Renewal term option | 5 years | |
Remaining term | 12 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, 2024 | Dec. 31, 2023 |
Real Estate [Abstract] | ||
Land | $ 74,246 | $ 74,246 |
Building | 616,979 | 616,979 |
Building improvements | 26,710 | 25,110 |
Real estate properties | 717,935 | 716,335 |
Accumulated depreciation | (86,934) | (80,499) |
Total real estate properties, net | $ 631,001 | $ 635,836 |
Real Estate Properties - Sche_2
Real Estate Properties - Schedule of Real Estate Properties Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | ||
Real estate properties, beginning balance | $ 635,836 | |
Improvements | $ 1,600 | |
Depreciation | (6,435) | |
Real estate properties, ending balance | 631,001 | |
Multi-family | ||
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | ||
Real estate properties, beginning balance | 634,045 | |
Improvements | 1,600 | |
Depreciation | (6,407) | |
Real estate properties, ending balance | 629,238 | |
Retail shopping center and other | ||
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | ||
Real estate properties, beginning balance | $ 1,791 | |
Improvements | 0 | |
Depreciation | (28) | |
Real estate properties, ending balance | $ 1,763 |
Investment in Unconsolidated _3
Investment in Unconsolidated Ventures - Narrative (Details) - Unconsolidated Joint Ventures - property | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||
Number of properties | 8 | 8 |
Weighted average interest rate percentage | 4.07% | 4.32% |
Weighted average remaining term to maturity | 4 years 9 months 18 days | 5 years |
Investment in Unconsolidated _4
Investment in Unconsolidated Ventures - Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||||
Real estate properties, net of accumulated depreciation of $72,863 and $69,970 | $ 631,001 | $ 635,836 | ||
Cash and cash equivalents | 21,252 | 23,512 | $ 15,252 | |
Other assets | 13,690 | 15,741 | ||
Total Assets | 699,485 | 709,963 | ||
Liabilities: | ||||
Mortgages payable, net of deferred costs of $1,061 and $1,135 | 421,835 | 422,427 | ||
Accounts payable and accrued liabilities | 19,888 | 21,948 | ||
Total Liabilities | 478,871 | 481,518 | ||
Commitments and contingencies | ||||
Equity: | ||||
Total unconsolidated joint venture equity | 220,614 | 228,445 | $ 243,334 | $ 250,070 |
Total Liabilities and Equity | 699,485 | 709,963 | ||
Real estate accumulated depreciation | 86,934 | 80,499 | ||
Deferred costs | 4,049 | 4,266 | ||
Asset under Construction | ||||
ASSETS | ||||
Real estate properties, net of accumulated depreciation of $72,863 and $69,970 | 12,715 | 46,508 | ||
Unconsolidated Joint Ventures | ||||
ASSETS | ||||
Real estate properties, net of accumulated depreciation of $72,863 and $69,970 | 311,569 | 275,874 | ||
Cash and cash equivalents | 5,769 | 6,447 | ||
Other assets | 17,677 | 54,715 | ||
Total Assets | 335,015 | 337,036 | ||
Liabilities: | ||||
Mortgages payable, net of deferred costs of $1,061 and $1,135 | 249,245 | 246,966 | ||
Accounts payable and accrued liabilities | 7,920 | 8,751 | ||
Total Liabilities | 257,165 | 255,717 | ||
Commitments and contingencies | ||||
Equity: | ||||
Total unconsolidated joint venture equity | 77,850 | 81,319 | ||
Total Liabilities and Equity | 335,015 | 337,036 | ||
BRT's interest in joint venture equity | 32,953 | 34,242 | ||
Unconsolidated Joint Ventures | ||||
Equity: | ||||
Real estate accumulated depreciation | 72,863 | 69,970 | ||
Unconsolidated Joint Ventures | Mortgages payable | ||||
Equity: | ||||
Deferred costs | $ 1,061 | $ 1,135 |
Investment in Unconsolidated _5
Investment in Unconsolidated Ventures - Summary of Real Estate Properties Owned (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Land | $ 74,246 | $ 74,246 |
Building | 616,979 | 616,979 |
Building improvements | 26,710 | 25,110 |
Real estate properties | 717,935 | 716,335 |
Accumulated depreciation | (86,934) | (80,499) |
Total real estate properties, net | 631,001 | 635,836 |
Unconsolidated Joint Ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Land | 46,331 | 46,331 |
Building | 329,534 | 291,473 |
Building improvements | 8,567 | 8,040 |
Real estate properties | 384,432 | 345,844 |
Accumulated depreciation | (72,863) | (69,970) |
Total real estate properties, net | $ 311,569 | $ 275,874 |
Investment in Unconsolidated _6
Investment in Unconsolidated Ventures - Income Statement Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Rental and other revenue | $ 23,298 | $ 22,939 |
Total revenues | 23,403 | 22,939 |
Expenses: | ||
Real estate operating expenses | 10,579 | 10,434 |
Interest expense | 5,523 | 5,483 |
Depreciation | 6,435 | 8,008 |
Total expenses | 26,689 | 27,980 |
Total revenues less total expenses | (3,286) | (5,041) |
BRT's equity in earnings | (3,171) | (4,098) |
Unconsolidated Joint Ventures | ||
Revenues: | ||
Rental and other revenue | 10,624 | 12,132 |
Total revenues | 10,624 | 12,132 |
Expenses: | ||
Real estate operating expenses | 5,446 | 5,675 |
Interest expense | 2,778 | 2,455 |
Depreciation | 2,893 | 2,707 |
Total expenses | 11,117 | 10,837 |
Total revenues less total expenses | (493) | 1,295 |
Other equity earnings | 18 | 113 |
Gain on insurance recoveries | 0 | 65 |
Net (loss) income | (475) | 1,473 |
BRT's equity in earnings | $ 228 | $ 815 |
Debt Obligations - Summary of D
Debt Obligations - Summary of Debt Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Deferred financing costs | $ (4,049) | $ (4,266) |
Total debt obligations, net of deferred costs | 458,983 | 459,570 |
Deferred costs | 4,049 | 4,266 |
Mortgages payable | ||
Debt Instrument [Line Items] | ||
Debt, long-term and short-term debt, combined amount | 425,632 | 426,436 |
Deferred financing costs | (3,797) | (4,009) |
Deferred costs | 3,797 | 4,009 |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Debt, long-term and short-term debt, combined amount | 37,400 | 37,400 |
Deferred financing costs | (252) | (257) |
Deferred costs | 252 | 257 |
Credit facility | ||
Debt Instrument [Line Items] | ||
Debt, long-term and short-term debt, combined amount | 0 | 0 |
Credit facility | Other Assets [Member] | ||
Debt Instrument [Line Items] | ||
Deferred financing costs | (236) | (289) |
Deferred costs | $ 236 | $ 289 |
Debt Obligations - Mortgage Pay
Debt Obligations - Mortgage Payable (Details) - Mortgages payable - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Weighted average interest rate on mortgage debt percentage | 4.02% | |
Average maturity | 6 years 9 months 18 days | |
Interest expense | $ 4,699 | $ 4,546 |
Debt Obligations - Credit Facil
Debt Obligations - Credit Facility (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||
Facility amount drawn | $ 0 | $ 0 | |
Deferred costs | 4,049,000 | 4,266,000 | |
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 | 7.82% | ||
Unused borrowing capacity fee, percentage | 0.25% | ||
Facility amount drawn | $ 0 | 0 | |
Remaining borrowing capacity | 60,000,000 | 60,000,000 | |
Interest expense | 92,000 | $ 300,000 | |
Amortization of deferred financing cost and unused fees | 92,000 | $ 83,000 | |
Deferred costs | $ 236,000 | $ 289,000 | |
Secured Debt | VNB Credit Facility | Valley National Bank | Line of Credit | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 6% | ||
Secured Debt | VNB Credit Facility | Valley National Bank | Line of Credit | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.50% |
Debt Obligations - Junior Subor
Debt Obligations - Junior Subordinated Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | May 01, 2024 | Dec. 31, 2023 | |
Debt Obligations | ||||
Deferred costs | $ 4,049 | $ 4,266 | ||
Junior subordinated notes | ||||
Debt Obligations | ||||
Mortgage debt outstanding | 37,400 | 37,400 | ||
Deferred costs | $ 252 | $ 257 | ||
Effective interest rate | 7.69% | 6.80% | ||
Interest expense | $ 732 | $ 637 | ||
Junior subordinated notes | Subsequent Event | ||||
Debt Obligations | ||||
Effective interest rate | 7.59% | |||
Junior subordinated notes | Secured Overnight Financing Rate (SOFR) | ||||
Debt Obligations | ||||
Basis spread on variable rate | 2.26% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Costs and expenses | $ 26,689 | $ 27,980 |
General and administrative | 4,152 | 4,055 |
Director | Advisory Services | ||
Related Party Transaction [Line Items] | ||
Costs and expenses | 405 | 385 |
Related Party | ||
Related Party Transaction [Line Items] | ||
General and administrative | 182 | 173 |
Related Party | Real Property Management Real Estate Brokerage And Construction Supervision Services | Majestic Property Management Corporation | ||
Related Party Transaction [Line Items] | ||
Costs and expenses | 9 | 6 |
Related Party | Shared Services Agreement | Gould Investors Limited Partnership | ||
Related Party Transaction [Line Items] | ||
General and administrative | $ 182 | $ 172 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Level 2 - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Junior subordinated notes | Market Approach Valuation Technique | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate percentage | 8.60% | 8.60% |
Junior subordinated notes | Carrying Value | ||
Financial Instruments Not Measured at Fair Value | ||
Estimated fair value (lower) greater than carrying value | $ 3,577 | $ 3,613 |
Mortgages payable | Market Approach Valuation Technique | Minimum | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate percentage | 5.20% | 4.88% |
Mortgages payable | Market Approach Valuation Technique | Maximum | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate percentage | 6.55% | 6.23% |
Mortgages payable | Carrying Value | ||
Financial Instruments Not Measured at Fair Value | ||
Estimated fair value (lower) greater than carrying value | $ 39,019 | $ 34,195 |