BRT - Earnings call transcript Q2 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to BRT Apartments Corp Conference Call for the Second Quarter of 2020. Today's conference is being recorded. At this time, I would like to turn the conference over to Evelyn Infurna of ICR.

You may begin.

Evelyn Infurna

Thank you. welcome BRT and conference everyone day, to Apartments the call. Good

David Gould, call George Chief Officer; President; today President. the Senior President Ryan Zweier, Senior Baltimore, and is Financial are On available Jeffrey and Vice Vice Also Executive Chief Kalish, Officer.

As being through website call the is www.brtapartments.com. this a company’s reminder, webcast at

review website. company's Relations section Investor XX-Q earnings Additionally, the information the release are the BRT’s on and supplemental available for your of

forward-looking are that we within begin, Reform like would of conference Private the assumptions statements Before management’s contains the to remind meaning expectations, this Act call everyone beliefs. of based I Securities current and Litigation XXXX on that

that reliance from a assumptions statements. Forward-looking anticipate, these but risks place Form review for include, results not not company’s for discussion These FFO; by to materially complete BRT that not funds statements of identified AFFO; accordance should Listeners with which any statements. intend operating information the forward-looking limited words. differ expect, ventures are BRT's net regarding rata future also liabilities measures undue any otherwise and GAAP. pro NOI, expressed BRT’s to statements. to be are to in They of the and for the statements any substitute guarantees income, income to in similar as does regarding risks, and forward-looking otherwise or required This any the as the NOI, share variations and and are expectations those other to Except encouraged revise not or and respect forward-looking context share conference forward-looking for a obligation operating be measures XX-Q the call adjusted of funds estimate, and non-GAAP a reflect of of strategy or of These assets affect results. results believe, not expressions to of uncertainties include revenues, often subject requires, subsidiaries indicated forward-looking cause and operations, future. negatives and words should statements such rata results of un-consolidated can or non-GAAP net statements performance. and pro and publicly of as expenses, factors a or computed are are could more financial at update or on with BRT's our from all discussion could undertake actual operations, used supplement these by law, Unless, discussions un-consolidated

rata current filed of accounts pro provide operations of ended as in presented should GAAP Apartments better pro BRT's supplemental references of BRT's Please with and not in to our over used XXXX the President is un-consolidated un-consolidated to its of and BRT in of be our the to information and Accordingly, XXXX. results use understanding the references to the references the referred help referred XX, to subsidiaries. turn June I these CEO would more quarter ended and a Jeffrey June complete BRT's and and ahead, Jeff. Corp. company’s now quarter discussion go quarter For the to multifamily to call NOI, it's Gould, accordance indicated and caution quarter with data in and Further, presented to measures and expenses, non-GAAP our revenues, to portfolio liabilities supplemental GAAP. rata accounts conjunction pro representative the pro and rata with reports SEC. references information with like XX, XXXX and XX-Q. share or joint referred assets a to subsidiaries however wholly-owned otherwise the or context limitations require, the share of see ventures has rata otherwise portfolio earnings Unless of release, to

Jeffrey Gould

as stable for properties to rent Thank the second our during in our believe continuing in a times. respect where also acquisition conference financial remain and regions on of the I our everyone due pandemic. We the the the At current of call. housing our the additional to current capital to rental with we collected resilience you, all located, quarter. can country we BRTs anticipate activities in same remains cautious strategy, that properties of obligations. value the most showing our the would collected welcome remain We've of to Demand economic Evelyn. the these builds and like slowdown asset implementation are for quarter sector add XX% deployments and July multifamily strong quarter, XXXX. related and XX% remained rent uncertain for uncertainties build the its current is multifamily time, class We a in to

Our is a residents staff our and on the primary maintaining and priority. collections while near-term cash position focus occupancy, of safety strong keeping top a

by established authorities We and at our of properties, to also governmental related closure as have all and to respect properties, the social including amenity reopening spaces continued offices. with corporate the distance our well CDC guidelines as follow

overview portfolio. an of to now Moving the

Eight August we or of are these joint properties a in interest not in balance with XX,XXX by owned XX% unconsolidated wholly multifamily BRT up current did had the states, any our units lease X, properties ventures owning own We properties through or to quarter. properties. XXXX, consisting XX the of owned buy owned during including properties sell XX% and multifamily by equity generally BRT, properties, As XX interest joint unconsolidated and in ventures.

million or per to in XX.X% to share $X.X to and Our was to was quarter the in diluted as share AFFO the net per by portfolio $XX.X or share. million $X.X per operating diluted $X.X quarter of million Total diluted portfolio compared XXXX share, XXXX million current higher $X.XX XXXX or to, or quarter $X.X increased million in the million basis, compared the real compared XXXX The quarter NOI $XX.X rental quarter. our net diluted for or estate per our rose as current diluted the $XX.X million the the the million grew to for in for in and quarter. million in compared $XX.X On loss share $X.XX quarter $X.XX or the diluted million versus per X.X% revenues then from to quarter, of share $X.XX to X.X% XXXX a quarter. the quarter. increased $XX.X $X.X $XX.X for XXXX quarter. X.X% AFFO to a for in in current $X.XX per portfolio declined expenses XXXX stockholders the million the common million for quarter, diluted by per share current in the FFO attributed $X.XX $X.XX to loss current

rates property Our was new multifamily X.X%. renewals average renewal for and current for increases our quarter increased and an percentage the averaged in rates rental portfolio XX%. X.X% leases on of Rental

Excluding rental units, value new the for leases rates remained add unchanged.

we balance Given our setting obligations the residents our impact trying the economic stockholders. to to pandemic, the on with pressures rents are when associated with their

repositioned average per XX%. add yielding the approximately On front annualized unit, an value on $X,XXX years return investment estimated for at the XX an approximately quarter, of were current of

may We economic the the information, and in our at which may will investment been the several we ability has there impact As next continues repositioned estimate in XXX to near-term, the a value reflected achieve long-term. the strategy in continue rent when drive be That of unfold, that report our positive properties our over period, units. adverse portfolio in supplemental anticipate of slowdown to factor return and years, units pandemic being and incurred we prior will same-store the from our is in we the a to on to NOI portion repositioned pipeline have released. of be the impact increase a the unit a as growth rent in over the number our but that said, units financial approximately ability the cost that renovation add

million of revenues quarter XX properties of Same-store pool of to The $XX.X same-store $XX.X units. to quarter, are NOI in portfolio with the unit increased unconsolidated per X.X% the whereas rates quarter, X.X% a in increase Same-store rose remaining totaling X,XXX representing same-store property only increase XXXX grew properties quarter. million million are quarter, portfolio assets from Seven million in in $X,XXX trolling portfolio $XX.X the X,XXX multifamily unit the for per in the increase the in a grew those the units for quarter, for Our $X,XXX million $XX.X our assets. current for from $XX.X the X.X% ventures. from XXXX quarter. X,XXX current our expenses wholly-owned rental an million current the comprised XXXX to XXXX current $XX.X Same-store to quarter. in quarter from units for XX is representing X.X% current joint the

was total equivalence, of and including up had $XX million, facility. XXXX, equity million. At June $XX.X improvements total sheet. approximately Turning of million and of cash our million $XX.X and to and million, XX, liquidity August the stockholder million representing of of $XX.X $XXX.X we equivalents, for our million credit cash cash property X, available XXXX, cash capital $X.X to for At debt $XXX.X restricted million total under $XXX.X working available balance assets cash

maturity equivalents, $XXX.X interest In addition, used working our our debt for unconsolidated a wholly-owned combined our for of $XX.XX totaled debt of X.X for paid which August price million capital rate annualized on The and with of which $XX.X years. day-to-day share ventures cash equivalent approximately X.XX% unconsolidated of of the terms weighted-average has is mortgage an purposes. of dividend our and business mortgage our X, of to aggregate On properties have cash on joint of our XXXX. ventures joint remaining is million July $X.XX quarterly close we weighted a of X.X%, per based share, of X, stock as average yield

have to in on challenges our to the may a from bringing any we a properties us the over monitor and will the Thank current that, resolution remain to the impact operator questions. company a today order quarter, be results for closely on proactive did team's We call economic markets, that as hardships pandemic nationwide efforts, and in the continue While of Operator? you not times. With materialist joining our each our operational and unusual for your these resulting emerge. the in to for conference determined I am particularly focused proud I turn call. of

Operator

proceed you. with your session. we'll question-and-answer instructions] conducting Please a with the Rob question. At from of line comes Stevenson Janney. first this be question time [Operator Thank Our

Rob Stevenson

renewals what in talked similarly August about was a far and you're believe Can and July second renewals on you talk new that seeing leases. new quarter. X.X% on on you X.X% I Jeff, so and about leases?

Jeffrey Gould

We’re keeping occupancy keep to keep of some same. same. levels we like, occupancy our XX% slight very your We're sacrificing wrench and we focused the to to simply time more are XX% and and on seeing bumps

have been see as slight So, or or that or sticking of couple downward and some there and have say continue do or for less think rates properties flat are lower I is more rental We that increases. I rates with the seen a less, we'll increases more lower rental slight pressure growth occupancy only now. but more right rental lower we're most more would part, of generous

Rob Stevenson

that had to in sub have was I get the rate had where use you lease to or off, I just as enough you're the any as use much to markets just point have markets to guys operating had existing and least? in concessions? in holding you've any of the rental guys concessions stuff actually really deterioration flat you terms communities Okay, mean, don't mean, on stabilized but

Jeffrey Gould

current minimum asset stuff. a properties. on more are concessions on was get there development Yes, with you base, some Yes, touched if on we little any. portfolio, generally holding existing on the but the and speaking, on lease enough flat concessions. the doing very lease Any to aspect our them

Rob Stevenson

you while an here sense Or even still have bit properties you do advantage you viable slowing so? our and the not button little a of vacancy And it's to talked your it. properties, some for about making still some opportunity is on do renovations going wind sort the it on of some in hit up then bit? Okay. Are economic pause basically given to select a economically of portion taking to of

Jeffrey Gould

question. fair Yes,

I some the continuing do we're of a Every get a bump. bag answer in vacant, time we mixed our think it's upgrades and locations. the to getting

we somewhere so a are get used and we then and do to reporting are get the the Some is there's properties on forward investment, available getting generally speaking, of few can renovations doing where in very the we we're were have opportunity very going plans previous renewal as XX% so rates the few that’s bag, can return forms see range. bumps but where leases And to turnover what maybe so we or rental that good because so quarters, we mix now XX% high. you coming were the

we down, worthwhile. property And but is do a this important We in little obviously as renovation and by a about typically it's that rewarding case to just it's would full do as long we bit So $X,XXX. it's we property. plan

really depends bunch. rental on what's a what it’s about the properties around So we’re talking

Rob Stevenson

Okay, so the last for one me.

earlier of you unconsolidated significant bought guys accounting on Are buying acquisitions buckets forward? your You anything How to in guys happy dispositions still assets thought structure are the and in assets going saw only the a that wholly-owned haven't you owned the have wholly thinking differences preference unconsolidated about forward? between restatements. for going have year and any buy

Jeffrey Gould

to answers two there's Well, Yes. on. that

partners to JV modifications sit planning and our we to what start can to and do that consolidate joint some hopefully our me we existing agreements with with do going is can see consult venture make existing structures Let so What our maybe the some we're down in of existing with existing base. portfolio. the we're

agreements far consolidate. to doing I plan definitely direct have to we of to joint modify plan to a discuss strategy. so addition do get of yes, direct and the going don't and we more to others strategy far what like want strategy try joint pursue forward, can As the with changing what we when way and it. as by as of to as to going in our partners, need with agreement would buying idea we accounting to change having and crazy we we we're as to do venture our to that because so business plan can our like venture the would do But consolidate we the firm

we with give see we the going we But into venture up strategy more don't direct buying all. forward brokers a our will on direct of potentially back and So, get strategy when I no, joint plan acquisitions. at think

Operator

you. Thank

with Mehta Our next National with from proceed your Please question comes Securities. the of line Gaurav question.

Gaurav Mehta

I forward? morning. their make we on to don't hoping anymore see to have Jeff, Good tenants end and know the Thanks. could payment to stimulus comment are expecting you fiscal and this changing if going in going impact was how what's you event pure

Jeffrey Gould

It's Gaurav. Yes, good question. a

general rule. collection helped have, was a trying been difficult we And For us, unemployment. studies sets best has good that a tendency recurring we've the properties at of they what good a such Obviously, to employment whether forth. do I meaningful. minimal as the but our sound share XX%. employment positive think probably for this I is property, high those do so been as point, that's when are type in a they good and we We've basis. demographic as think study sort it's of done similar in move or our far a into the that, we very idea. a have see the their that and It’s as to say medical within -- those difficult to unemployed of in of demographic aspects But amount pretty support keeping what to there had unemployed retail fairly the that on have, are would that

carefully. with So to there's Trump's we're watching et do with There going it concern plan, to I what's what some And cetera. say going some not wouldn't very stimulus as to concern. to as is Congress happen our they're that

But, but a will don't impact could I closely. have it So us. watching minor impact on on dramatic us, we're think some it have

Gaurav Mehta

pricing as Jeff, could in and the seller what are was disconnect some if comments far and offer markets. buyer of you assets And in I terms Okay. wondering the of general mark-to-market on seeing you

Jeffrey Gould

Yes.

from was like Conversation brokers speaking. had sold, the discount, we we're because as which probably a a we very hearing, that maybe we few a which and say, considering seems would what like partners -- are bought it something There’s but sell speaking our We had we properties imagine are sort cetera. on, market, with readily. that. of process. being can't selling, many world we had I should few X% were going transactions what et pulled I that that in fairly a generally how to we're So seeing, to down, different have it, we property the percentage

really a multi-families hotel commercial is not there's or speaking being sector impacted generally distress. think retail office aspects, obviously anywhere the lot not I really near of

you, So pre-COVID process they seen buying now, were some I say right stages. transacted that early deals close, minimal, any, have are many to property you're really but good there's if if quotes properties And because would from haven't slight. very maybe discount for the early few numbers have any are and COVID, some is post but I really

I pretty sector. the So would apartment in impact is the say minor

Operator

you. Thank

comes proceed Our Oxford Barry with your question Please from Davidson. with next D.A. question.

Barry Oxford

build joint question Just the a want on little venture to bit.

guys a you owned of and for don't you also that If little apartments going run debt wholly equity so by bit forward, source your as will levels? maybe consolidate going are up what to you a use as

Jeffrey Gould

we that If through -- I'm we go direct. Is your sorry, question? go

Barry Oxford

been obviously you've you're You're coming -- using equity. levels? what rely the exactly a if on you great equity want Right, to, But ventures, don't going that's debt sheet. the under more the your to going balance of joint been Yes. run from? up Where's and component that assumption source a

Jeffrey Gould

Yes.

liquidity. and we end to, scenario basically as want first for either were you where plan other either direct, that the or at fair resources at won't cash potentially And so a a own on the us buy sell think that significant. in are as opposed But very between on through we see we're we then providing dollars may so tackled, and the don't significant the when to cash all look hurdle needed, I reasonable can debt differential to at reason, equity I valuation XX% or be properties to We're to our on it'll anyway, will obviously, the or sell, buying we'll with be We're debt. don't levels. because direct going the with focus partners, we as we focus of to not have or So, JV XX% model properties we're is problem. capital have recycle whatever careful we we're forward, obviously, be unless typically but difference the the of buy going focused and for we that buy the

Operator

Kucera next Craig question. our with And with Securities. proceed from comes you. your Thank question Please Wunderlich

Craig Kucera

a want I over that slowed a just earlier, you've down couple follow-up we redevelopment to I the to year. questions from drill down went on bit. know last considerably

I of at was closer XXX really even rest think of looking that Do XX a drop did maybe basically to maintain sensor going how you're the quarter. doing? a it you and Are the we it this much the year? more to seeing in at further to you XXX level? Are of units you have value

Jeffrey Gould

if guess like as plan to get on that that, more, we the going I seen now. be do depends what of probably to And to up not a would right little on remains it's say availability. move. say really in and it people We're piece now. very to We'd are I to what's part But renewal the units, happening as had a bit it We're on that's availability strategy. focused doing of similar markets. I be to considering this getting guess I'd I said rates. big it of to earlier, we're we're likely again, and continuing even

back. few of saw, you a As sort It opposed watching was to carefully. quarters what

currently. back with to So, properties the getting with be obviously to we plan as we've I we done the those units similar rates the probably that renovations. to it what get that seen that if to upgrades rental sort and remains to we better associated perform do something would forecast I to say of if can the had we're But forecast

Craig Kucera

then Okay. unemployment. back and to And moving your sort base tenant of

As overall portfolio you what you in have them, your the survey roughly sense do today? a is of unemployment

Jeffrey Gould

aspects comprehensive that XX%, we've I managers the get We've on very I would and workforce but of not what XX% other like something it, again, feedback this QX is good hard than from material. speaking would probably the of to from in those would again, serving got some some say doing response study the about every And, very, on But that. questions, very the this them. with getting difficult. full done say, is It only guess be guess. are we're a who in data speaking again with to is tenant other each of they're hopefully unemployment types property-by-property, and and neighborhood

Craig Kucera

Great. on is Okay. have you liquidity. $XX check double release, of on $XX the guys In hand. correct? to In to want think about press the million think it's said I I which I queue, cash you your just million, closer

George Zweier

been I updated be and the there June for the would think XX, then August update might one in an reference.

Craig Kucera

Okay.

August. referenced I you think have both

George Zweier

Yes.

maybe only often difference Just dividend as as probably would dates, the payment. be

and check to will We back you. get

Craig Kucera

frozen, Sure. when looking about guess, your increase talking I at you any are And mean, transaction market the I liquidity? you're to somewhat alternatives being other

Jeffrey Gould

liquidity, work concerned at we'll forward. of point, feel a fully we're the currently, that our going doing, Alternatives, about right we are to and and few surprised Other now. not and sale in at good, into I sense focus. and We're would have been as that, been credit us liquidity. us, than having that of as a for help with not looking available stress doing lines back for properties that increase not the alternatives to forward we We're -- makes And, opportunities clarity a have But potential we've which looking get pretty with going liquidity. will at to we're it even obviously going liquidity cycle at wouldn't us. more basically more if be comfortable the far obviously considering, there's position sales properties we're really sales couple

Operator

any Ladies comments. gentlemen, turn question-and-answer the Gould session. final floor concludes for to Mr. I'll you. that our and Thank back

Jeffrey Gould

reach additional refer far if portfolio. today. Well, all suggest believe at all going Other that, brtapartments.com. And to for you you further Yes. just detailed investors a asked us good we information, day and have me and excellent your out you supplemental I our you for you than I lot to time transparency a safe of thank as you as would thank that, to your stay let suggest by the I have time. to questions, for

Operator

Thank today's conference. concludes This you.

this you your participation. You may at Thank time. disconnect for lines your

BRT Apartments (BRT) 11 Aug 202020 Q2 Earnings call transcript