BRT - Earnings call transcript Q4 2020

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Operator

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

Evelyn Infurna

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

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

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

on information Monday, its release the company's were XX. section Relations Additionally, XX-K Investor for be BRT's available on supplemental of the and such currently and earnings website, March will available on website your review

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

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

complete owned NOI, more company's For measures, subsidiaries to wholly unconsolidated the understanding pro as results the March Relations a information, measures which discussion release and non-GAAP otherwise Monday, -- and XX. the be with the website, our XX-K, which at tab of our and available these non-GAAP at will reported earnings Investor supplemental these financial on are available currently pro accordance tab in under BRT GAAP, help see indicated better of Unless to multifamily unconsolidated refer and requires, its of ventures. and and to or share share portfolio its and a references BRT's our or otherwise subsidiaries. liabilities of accounts results to joint expenses, revenues, the references context rata provide assets portfolio rata BRT's uses such

refer the company's in XXXX data certain President ended refer turn Jeffrey supplemental over CEO the used the references XX, SEC. year References with references accordance Jeff. be should Gould, XX, However, presented to XXXX. pro XXXX. to to current references rata call refer and with the to representative and year the to Further, operations in rata XXXX, XX, the accounts to refer to Accordingly, like the limitations ahead, is with has year-ended caution and GAAP. information the the current I now and presented to XX, annual not of would go reports December our filed the GAAP and as December use BRT XXXX in the and pro quarter-ended of with Please quarter of the to conjunction to December quarter quarter-ended XXXX, December Apartments. information

Jeffrey Gould

Thank like to I would Evelyn. everyone fourth to quarter call. you, welcome conference BRT's

performed Let and uncertainty the times. were at We although during market, cautious that, proactive and the me up XXXX. pleased start remain in about properties performance team as and strong had the are conservative with a result, off have brought BRT and deployment, our our by XXXX saying way in stepped we and with capital these

XX multifamily generally quarter. subsidiaries, XX,XXX XX properties BRT We XX%. did to properties joint or We actively activities confident in position by XX% in or to respect ventures; wholly ranges protocols interest are safety right market compressed. to we which had to X staff put regard interest continue equity from the is over the of any health unconsolidated XXXX, owned these With multifamily remain priority. continue to are cap the states. our consisting in by remain in that oversees and when unconsolidated properties; a tenants' as diligent We units and growth X, we BRT's in and to not as March as our owned with the XX current properties buy sell of rates owned BRT. top resume portfolio, management,

in financial in $X.XX diluted compared share. or performance. Let's our share current diluted BRT quarter $X.XX generated or turn the FFO to $X.X per of per approximately to the quarter XXXX million $X million

FFO million $X.X diluted to per diluted $X.X represents share quarter. For diluted a year, on compared in increased the the per per increase share million $XX the to a AFFO $X.XX quarter in per XXXX. for current million to XXXX $XX.XX This $X.XX AFFO share million or share or or $X.XX $X.XX compared diluted to in basis. grew XX% per diluted or share

and million expenses $XX.X for the quarter, to in diluted as increased year, operating for share quarter. in the XXXX $XX.X per XXXX compared million compared real $X.XX $XX.X XXXX. per $X.XX $XX.X $XX.X to as to diluted the compared or increased to to the revenues portfolio estate AFFO million For Total in to or increased million portfolio $XX.X rental million share million our

For properties revenues the portfolio million increased the NOI XXXX. compared current our quarter rose for the increased to total $XX.X $XX.X million rental increased revenue NOI estate and for was were compared rental lease-up our real in $XX.X million rental million increase portfolio $XX.X due portfolio $XXX.X for to operating increased as The for to year our for X income expenses million at XXXX, $XXX.X $XX.X properties XXXX. at million from million in to in increased to due quarter. the million year, from current portfolio year-over-year rental $XX.X XXXX to the X.X% our and to for to same-store rates. in increased that as for X.X% our

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

units, For the year, on XX%. completed approximately improvements estimated of yielding XXX an we on investments return

re-leased. investment As information, period, a of unit our the reflected supplemental on but prior incurred the in costs portion return financial been report the may in we is when have the

rent the term, We to number units. continue could properties adverse be there unfold, which will economic in in that of from to slowdown as our continued increases near pandemic impact at the our we achieve the continues impacts of ability the repositioned repositioned anticipate units that to a

value-add strategy the over strategy positive term. be ability being, slowed will same-store long drive have to Although we factor growth rent for our continue we and our the a time believe in the to NOI

rates. quarter the the in same-store and tenant pool higher occupancy, higher current higher showed rental resilience and Our due to year retention

Contributing per ventures. our in same-store units the current revenues to from are representing quarter. the the totaling in quarter. increased $XX.X of of million $XX.X for the same-store X.X% $X,XXX assets. the the $XX.X X to quarter in an properties X.X% XX,XXX portfolio current in million increase properties joint of rose with remaining a owned an XX Same-store The XX the XXXX Same-store X.X% prior X,XXX units of from unconsolidated to the quarter, X,XXX NOI in those year representing expenses million from XXXX in increase over for $XX.X current rate from this unit. is Our quarter, pool in increase increase units. was million Same-store comprised quarter assets are XXXX totaling an to rental $X,XXX $XX.X the current portfolio quarter, million to increase grew million in quarter. $XX.X wholly

gain XXXX, to from We remaining For $X,XXX approximately transaction million sell increase that such units million. we X.X% Florida the or XX $XX.X will by unit Beach, May venture in entered higher totaling $X the recognize partner party representing an the $XX.X estimate assets on Same-store XXXX. into for interest Same-store this for year, these of close our million March current Manor-Houston, occupancies; the a on to agreement property and million of gain a per $X,XXX will lease in anticipate The the year, $XX entered X.X% representing X,XXX an partnership with of interest of from to X.X% Texas are revenues to we XX current an will year, $XX.X approximately $XX.X transaction We $X.X rose XXXX. rental estimate expenses $XX.X our of a unrelated into properties in same-store current February strong comprised X, in will unit the pool driven to to sale sale million for that In rate we of agreement XXXX, X,XXX totaling a was of recognize Also, joint increase to million. approximately the an an renewals; increase in Daytona in assets. per XXXX. March and Anatole in April of portfolio NOI X.X% We million anticipate to for increased X,XXX grew $XX.X Same-store or in Apartments, from million million $X.X wholly-owned Kendall we million XXXX. sale. on third the from joint increase a ventures. close XX% year, our from approximately sell unconsolidated are April units in XXXX, X units. properties XXXX.

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

for $XX In month our weighted approximately our an million, XX, expenses annualized of wholly-owned total joint of and a minimum, addition, quarterly interest and debt for which Board ventures a equivalents, to pro of which on rate we rata of XXXX. each to unconsolidated X At weighted is mortgage close have ventures with day-to-day maintain as service of for of per $XXX of purposes. based X% is combined of debt debt working cash average our our years. one stock On joint share The used maturity price $X.XX our properties, term a equivalent million our the of March remaining capital XX, has approximately X.X% to unconsolidated cash aggregate of approved intend business properties. of mortgage March average at yield share, dividend our our and $XX.XX on

We year effort, ahead as portfolio. with these particularly remain as and am caution determined in I near team's times. proud the in we the about approaching company, continue term optimistic of are the unusual the a market and focused to monitor are actively We our but

with pleased the conference call. questions. for today are over the And our Operator? continue us throughout we Thank to We we operator date, on the diligent I'll your with stay that, and will turn year. performance you our to for joining as call

Operator

Mehta [Operator from proceed question. with of question comes line Securities. Please Instructions] the with your Gaurav Our over first National

Gaurav Mehta

question color received? the hoping you dispositions. I could the some selling drivers X upon pricing on for kind you on and First maybe of those touch more the if was provide properties

Jeffrey Gould

sure. yes, Gaurav,

as be properties that. that going So margin somewhat up, that limited. we've older And We basically, concerns, particular life these having consider as were improvements. this to were case, sort our operating seeing in concerns sales. end we investment as times our properties value-add of both considered at -- the in there possibilities obviously In are to need expenses capital far of were

we move X sell assets. cases, So in these particular forward these to

showing seen to as Our a to I've partner rates, outcomes. know, And pre-COVID. selling more one partner third the other opportunity, are believes as we're happy and even them, growth parties. we're of with positive in and both as low we're the you Cap

returns the we've and got Xs. anticipated that cap low the were in and on NOI So rates our NOI the

with So we that. pleased very were

Gaurav Mehta

your on was you're could post-fourth hoping getting you that if quarter? renewal and maybe rates comment I in question, the new Second market,

Jeffrey Gould

your Gaurav, hear I'm I sorry, didn't question.

Gaurav Mehta

getting your new for and your you're markets in The rates renewal that portfolio?

Jeffrey Gould

a The renewal response. rates -- really it's property-specific

Some getting, minimal. were frankly,

to in specific? better would think, we're typical say, XX%, Ryan higher. a are So Ryan and XX% I I -- some,

Ryan Baltimore

Gaurav, year-over-year. also of and Yes. leases renewals terms so X% new in just seen rent the increase, of in to actual about X% we've terms

mentioned, Jeff properties where able property-specific we strong, kept there flat. be As And occupancy we've were might it feel then other properties is we've in pressure, rents. been occupancy rents more to push relatively

pleased very X%. the to we're with X% So

of were we little a fact, the expecting it were the with be portfolio year. bit In We pleased performance to less. the for

basis. the X% both in on and to X% So blended leases renewals the we new a on were

Jeffrey Gould

people I sure less as And renewal have all, move. Yes. far to been and mean, with for COVID likely as percentage,

So we higher a than percentage recovered. had we've generally had

Operator

Our from Please BTIG. of Jim your next the proceed line question. comes with Sullivan with question

Jim Sullivan

with outlook, or maybe the on ended your that X I of, just about year. that XXXX. general things you Jeff, prepared wonder you X that well, were could saying for optimism tell the us the you you gave kind And what optimistic comments if comment the coming

Jeffrey Gould

which a timely to buyouts, it. interesting the if us. sense, opportunity We're a and which company. at long-term real And been I gains, proceeds the of believe point, partner Well, sales have a going are change -- endeavor, buy. the are, to maybe make it's we're But I think these that I opportunities this proceeds with think taking potential being where cap where they it we spreads, environment doing rates embedded going beneficial the this of to some where Hopefully, more cap acquire a few Yes. to being we has on makes of think be to what right look that we're unrealized from now. completed. that And a will advantage we deal value-add we're a it's as rates property. said, over scenario, deleverage at to are. acquisitions. With will at possible X I we and the now difficult from months now, X will either basis, to component difficult -- these be With they're some look Taking point, is worthwhile using said, for sales, think as do considering into we could -- considering

think that -- in with sale. really We be economy have but way where ahead, will anticipate which back a done strategy. with know there about that probably about as I'm those obviously, I But had a we've thrilled the we a though, jobs taxes may it's the possibility. believe the have But but the be job favorable We negative insurance, the in few ahead, value-added AFFO. -- about, some we great -- it a we again, and rental the continue coming year those will is increases outcomes a opportunity, And the one tax side, and should everyone completing past is. economy are very do that the anticipate, not some vaccine, believe And But opportunities XXXX. for we ahead. and coming regrowth. we and that pretty this great we in is fight that potential we and back we're we're excited insurance affect what's year, excited road to tax months, will say areas for will vaccines, on we coming

Jim Sullivan

kind exposure, are you kind most the you when which where assets, X And wonder selling I the be optimistic years in to terms could you sense markets in or looking talk internal in us next X lighten you that up? for of have give of buying Jeff, markets which your about if about of and vein, you might conversely, assets growth? currently

Jeffrey Gould

Yes, good lot. question. our We like footprint a

the is place Southeast, recognize of -- think, we're on are which starting the that people, more. is to are far the focused as going We quite and flight as I be into we're and more Southeast dedicated really money and incredible. The concerned, to obviously

I like where going So population general in think this there's where we area growth to that our growth. stay an footprint, employment we're

in areas from through the Southeast supplemental Texas see our basically you the through the see, gone that So and you Mid-Atlantic. we've up

markets. We and tailwinds. we're have are think considering are X pretty part, we or X operate I we much, But in new our to and the know for most how foothold to stay where positive going believe

don't we're It's a something typical we going markets involved to the St. aren't X it's story core in. I is downtown that as, guess, in read suffered of -- that never property I core be that's far in, As been that working Louis portfolio and and particular living downtown. property has just people about will everyone with. markets, in we've that bit. want our on say little Where not And pleased what's markets. has

the or concerned Fortunately, that's we're one few about. of that only

I come St. think say part, as that right will not come, But think that's for probably with a may... Louis going I basically bounce thrilled back. we're the would stay are I But we again is where the to as as we're vaccines it back market most we now. to particularly

Jim Sullivan

Sure.

follow-up of you the of on strength that. the Just kind Sunbelt. Obviously, mentioned

and/or market Ohio. a expand position have you that Ohio? do with to your to Are content presence continue and You hold in in likely that

Jeffrey Gould

a in very long-term It's well. long had The good performed in of got us. through for sure, the Yes. a the It's a love interesting, -- right. We a an good property rate how as low own now Ohio But period got very partner. we We -- exceptionally asset, long is financing. we very you're long-term a story, outlier an and for HUD time there market. obviously, asset.

fact, about we've on now. hold. I well no of long-term -- So don't We it of as it's that right asset a others, selling lots have in matter gotten inquiries no, and we as as plan selling interest a great think

one kind a going the southeast of market, to but that one out is that that's stick lot. like So we outside of as

Operator

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

Jeffrey Gould

Yes. I continued have stay just your Thank all thank safe, day. you. and support, want joining to ask good and today you for us that you a all for

Operator

you. This conference. today's concludes Thank

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

BRT Apartments (BRT) 12 Mar 212020 Q4 Earnings call transcript