BRT - Earnings call transcript Q4 2023

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Operator

Good day, and welcome to BRT Apartments Corp.'s Fourth Quarter and Year-End Earnings Conference Call. Today's conference is being recorded. [Operator Instructions].

At this time, I would like to turn the floor over to Tripp Sullivan of Investor Relations. Thank you.

begin. may You

Tripp Sullivan

joining for Thank us you today.

Vice call Chief and the Operating as Kalish, Gould, Ryan President Officer; George Officer; Senior David as Jeffrey Executive well Zweier, Chief On Baltimore, are President. Chief Officer; Financial

encouraged any I undue Litigation contains meaning statements statements the call this or for and does forward-looking could BRT forward-looking as review any current revise other of company's of Act Listeners to Except its to SEC reliance XXXX would law, not Private based within update that Form beliefs. Securities a expectations risks not on forward-looking statements. remind filings, management's undertake XX-K like are the affect factors discussion that statements. by including conference everyone these of any on forward-looking Reform more the place that should obligation complete and required publicly are assumptions and to

in in limitations conjunction with presented the for and non-GAAP and caution earnings each the measure. discussion our NOI, rata and measures, Please filed unconsolidated also non-GAAP including certain non-GAAP includes reports call subsidiaries. in supplemental revenues, reports All be release data GAAP expenses, AFFO, should share and filings with the used and regarding SEC. a information our liabilities NOI, these today assets the with FFO, of This see has discussed and NOI BRT's of our definitions portfolio information combined pro of

company's Investor at the reminder, and www.brtapartments.com. release the website Relations a As BRT's on information been of earnings have supplemental section posted

Please call Jeffrey go over Jeff. I'd to now President Gould. the like CEO, to ahead, turn and

Jeffrey Gould

be and rental of brief down all this end with drill commentary activity, and rates, the so quarter in We'll We're is today, our very impact cycle morning. approaching in the we've Q&A. on can of heard supply Sunbelt. the those QX we transaction into expenses the focused topics new commentary Good the earnings

the any business the investing past disciplined do to XXXX on simplification proceeds year majority by improvement our early We in to million approach repurchase back and and the that decisions. XXXX, of in XXXX the year highlight I properties, of in acquisitions quickly right capital the taking shares want $XX.X summarize sheet full our significant allocation. we balance maturities To a ongoing our ownership to have started until disposition in and and to were of during XXXX mortgage debt not date the pulling the of

year, property look a We maximize made for it on our important It one, nonetheless. portfolio made focus relatively to but quiet to operations and where an possible. priority performance

providing not and While portfolio outlook XXXX we're the night P&L. specific moving our on outlines parts transactions our earnings targets, release last we other of views the in provided earnings operations,

The operators. like we're year big operational is much anticipating takeaways other are this that environment

Long term, be impact the Sunbelt. are expected will headwinds year There is impact New later on to in we're the to pressure supply grow to intend expected transaction more constructive We in on the prioritize to the this potential ability stabilizing region continued occupancy to and year. being occupancy activity the view a with margins. right rents. inflationary in ongoing operating

growth. in We will position very a to us XXXX be balance will we the manage be aggressive the right XXXX, but better earn we on portfolio will in what we and challenging patient to how 'XX. asset for strikes anticipate growth believe remain this We

the open you please call questions. to will Operator,

Operator

question with from Instructions] Michael The BTIG. comes first [Operator Gorman

Michael Gorman

talk opportunities that share the the you're additional thinking the repurchases specifically, that. And kind obviously, in operating may in wondering there? or be what of kind Jeff, down about lot if what transaction on Can about these you side, a of have about heard may that's and side, little environment of the I spoke to not a seeing -- balancing drill leading markets, investment market terms just how was we could on about you you versus in bit you're certainly today? the

Jeffrey Gould

Yes, sure.

So very, very as of negative difficult basically are mid-Xs, The and somewhere the far -- continually it we're quiet. The the really that cap just it, slow. now. is even leverage, reality people call to higher too transactional I've seeing before, that a being with are interest purchases. as market very -- things transactional right excited rates extremely is are get said for It's about but than rates in that this volumes environment, the and whole deals things

I think drop. sellers are to rates interest have hopefully looking

a at can a rates sell not will pressure right in defaults and now cap in and of issues as sectors. There's better of with time. drop lot other So they multifamily lot a

quiet. pretty it's volume-wise, So

share On we see our always in active. right sense and have cash our we see check and price our pretty at side, and balances to on the We base the if right based makes the repurchase where we are to were that it we're pleased time and were buy stock but to back the want little then, a that we though if since we see bit comfortable purchases. with to those able capital shares of did even do dropped very we cost were borrowing

markets in is But our markets, very fight markets, but to for for push on it's happening the our simple. of and There's fortunately, not many generally, some in in of leading some rents. market some what's overbuilding occupancy our of

growth, XXXX about of that rough think, being I a seen year on So accurate. we've the is conversations kind

and through new I and heads to our get process. it's brighter rents in and hard because think I keep permitting have a little absorbed, difficult we're once the much a occupancy sticky going but and renewals. days working keep both think, it's very these leases 'XX 'XX 'XX, And be 'XX, to our are down, units we

Michael Gorman

share obviously, there. over share any about think of the you and the when that in as repurchases you think liquidity about a scale of on touched give it, of time? the And just the about And repurchases, repurchases do to helpful. consideration base the you you That's how in issues stock? on couple think shareholder you Do terms share

Jeffrey Gould

I significant so have and already a we a insiders we're -- it's owned fair mean percentage call by Yes, it, all. question.

minimal. So we float, the is the not pretty or reality is whether buy

longer investors mouth this haul interest in the and obviously, their stock. And management has for are where in us. large is, a So the most quite we their have money with

So same can it still think for or on compared be think liquidity other. one I share makes us. difference talking tremendous repurchase. investment it, term, probably as smart we a mean, way it's the don't investment going make doesn't other think the best alternatives. huge to the to we And not help we it the long but that's we of something is amount a understand But about at time, we we're

on see company. future we based where valuations of our and Just the the

Michael Gorman

you of That's there great. how on us on and Can you see lease up long plays Silvana great maybe term, a And probably initially a trending? maybe the varies then just But where out on and underwrote still that last one 'XX. over color from give little it? that And little just -- kind for asset. bit just more that a 'XX of you bit me Obviously, maybe color how Oaks. how

Jeffrey Gould

or actually one We transactions arson done well that partner resolved buildings. renting of on development It's hiccup going But are that But as the of we've still. has many expected, -- working an online general buildings answer, basically, us and a X it's time, property of great a months. one -- market slowed budget had on slight now, one was about before. we down that was started. already the a with a X was has there units for and on Yes, as building

the not rent but lease-up huge -- supply there, a it'll think for a some So I good and there up long-term project is the be we'll And well I do and with think oversupply. us. be we'll

Operator

Colliers. Barry Oxford The comes next question from with

Barry Oxford

Great.

X.X%, interested build kind given of your say level, question. okay, cap where would But Barry, sort would the this level could sellers at Jeff, Obviously, probably Just what acquisition into that back out to good of level rates. the about on get you at cap a at cost feel need market. unrealistic I capital, are of say, of to come little level. market to kind into the where you at back to kind coming rates you arguably of

Jeffrey Gould

also the but sort it's twofold. it's rates. of interest Barry, Well, It's the cap rates,

-- leverage, about the think seeing game. I where play that's where let's neutral neutral call it, So we we're

anything or buy some to of to been us. interesting talking you're patient what interest didn't smart cap and the lot year an X. patient were rent years, of We've last might looking more frustrating if So not it's and market projecting there and rates investors at it's last rate X.X% been in we of over we at prudent it's been and about think all. something growth very X.X%, be that pretty couple the and back and substantial targeting on be A

down it all it's not in and the as I fact, close realistically, anticipated. the properties is now, think as week a to place more we'll it gets of neutral XX much about matter think I a As even jumping the place stabilized things situations. is be they -- to in what when for a to calm value-add as think But consider week not year to well I acquisitions over better even when

Barry Oxford

sense. now. there position their their them up. And out? could Nobody's then makes that no, throwing and not any are the really unconsolidated are partners, right on monetize looking No, Or to that buy hand partners

Jeffrey Gould

pretty been have things Yes, quiet.

maturities like maturities care that probably about of think a sure partnership maybe event an think year the it's sooner, targeted As buy ones that that you 'XX when discussion happen the that of we there'll and lower-hanging I sell, were an they the be on said took deals buy range. typically event in what or more we maturities, those them, to towards happening is X the partners the whether the I'm the and 'XX a information. you and outcome, now, may will between the have maturity and fruit, you we everyone have sort outcome ago, be, we us, it's will. but have we place And not guys will if I cause take to It somewhere but

will the and on quiet up of rest expect it'll the most I or then next year partnership ramp -- So the of be for deals. the X things

will be place that take at an event will time. there So that

Barry Oxford

then Great. And question. last

or of be up the You I'm and end indicated at more we net get of more is, driving into supply for 'XX". leased process What on. Is as that some look, kind the towards could there's this "Hey, 'XX, there let, is demand most absorption say, to mind bleed supply? coming that you definitely have lease-up there brisk Barry, could longer the be of Jeff, should supply

Jeffrey Gould

there's will absorption 'XX it And think do up. just we'll does take some I early Huntsville, probably typical But market the net Alabama into won't filled I I example, the in markets went not mean, is better imagine think not have these markets. past -- that wildest you be seeing the sure oversupply will quarter on 'XX. where And these in Florida. much fortunately, right in the expected into oversupply. we're towards with days larger but to And and first get think We think issues. Dallas, go your portfolio answer. But now may all 'XX, have the longer dreams, comfortable comfortable 'XX, and 'XX. absorption we're Nashville, early in-migration might good. it. do and see second Combination calendar it in you I our do, again, a than Pensacola, of we I may -- We're away,

Operator

any over question-and-answer This for session. I to turn concludes conference back like Jeff remarks. Gould our to the closing would

Jeffrey Gould

Well, thank day. confidence a your BRT good you in have all and for continued

questions If feel with free Thank talk you that please myself. and you need Baltimore you. this to about, any to Ryan call have

Operator

for concluded. has Thank you now conference attending today's The presentation.

You may now disconnect.

BRT Apartments (BRT) 13 Mar 242023 Q4 Earnings call transcript