Core Viewpoint - BRT Apartments Corp. has filed its Annual Report on Form 10-K for the year ended December 31, 2025, with the SEC, providing insights into its financial performance and operations [1] Company Overview - BRT Apartments Corp. is a real estate investment trust (REIT) that primarily owns and operates multi-family properties, with some interests in joint ventures [1] - As of March 13, 2026, BRT owns or has interests in 31 multi-family properties comprising 8,311 units across 11 states [1] - The company also holds preferred equity investments in two additional multi-family properties [1] Financial Information - The financial statements and supplemental financial information for the year ended December 31, 2025, can be accessed on the company's investor relations website under "Financials – Quarterly Results" [1]

Financial Performance - Reported a net loss of $4.3 million for Q4 2025, translating to $(0.23) per diluted share, and a full-year net loss of $11.9 million, or $(0.63) per diluted share[12] - Total revenues for the three months ended December 31, 2025, were $24,291,000, a slight increase from $23,969,000 in the same period of 2024[19] - Total revenues for 2025 reached $93,567 million, a 0.4% increase from $93,179 million in 2024[75] - Total expenses for the three months ended December 31, 2025, were $27,759,000, up from $27,386,000 in the same period of 2024[19] - Total expenses for the twelve months ended December 31, 2025 were $51,705 million, compared to $45,070 million in 2024, indicating a rise of 14.7%[88] Funds from Operations - Funds from Operations (FFO) for Q4 2025 was $0.26 per diluted share, while the full-year FFO was $1.12 per diluted share[12] - Adjusted Funds from Operations (AFFO) for Q4 2025 was $0.34 per diluted share, with a full-year AFFO of $1.45 per diluted share[12] - Funds from operations for the three months ended December 31, 2025, were $4,877,000, slightly down from $5,133,000 in the same period of 2024[22] - Adjusted funds from operations per common share for the three months ended December 31, 2025, were $0.34, compared to $0.37 in 2024[23] Net Operating Income - Combined Same Store Portfolio Net Operating Income (NOI) increased by 0.2% in Q4 2025 compared to Q4 2024, but decreased by 0.8% for the full year 2025 compared to 2024[12] - Total consolidated revenues for Q4 2025 reached $28,886,000, reflecting a 1.1% increase from Q4 2024[54] - Total combined net operating income for Q4 2025 was $15,301,000, a slight increase of 0.2% compared to Q4 2024[54] - Same store NOI for the twelve months ended December 31, 2025 was $49,946 million, down from $50,084 million in 2024, reflecting a decrease of 0.3%[80] Property Acquisitions and Investments - Acquired 1322 North, a 214-unit property in Auburn, AL, for $36.5 million, and Oaks at Victory, a 150-unit property in Savannah, GA, for $23.0 million in 2025[12] - The company invested $18,250,000 in two joint ventures, with expected annual returns of 13%[26] - The company acquired two properties in 2025, with a total purchase price of $59,500,000[28] Share Repurchase and Dividends - Total shares repurchased in 2025 reached 321,060 at a weighted average price of $15.53[12] - Declared a dividend of $0.25 per share for Q1 2026, consistent with the previous quarter[12] - The company's stock repurchase activity for the year totaled 321,060 shares at an average cost of $15.53 per share, amounting to $4,986,394[30] - The company has authorized up to $10,000,000 for share repurchases through December 31, 2028, with $5,037,000 remaining available as of February 27, 2026[31] Debt and Liabilities - Total debt outstanding was $652,316,000, with consolidated mortgages payable at $471,083,000[17] - Total liabilities increased from $508,549 million in 2024 to $532,613 million in 2025, an increase of approximately 4.7%[25] - The weighted average interest rate on total principal payments due is 4.19%[43] - The debt service coverage ratio for the quarter ended December 31, 2025, was 1.37[44] Occupancy and Rental Revenue - Average occupancy rate for Q4 2025 was 93.4%, slightly down from 93.6% in Q4 2024[14] - Average monthly rental revenue per occupied unit increased to $1,419 in Q4 2025 from $1,405 in Q4 2024[14] - The overall occupancy rate for the consolidated portfolio was 94.3% as of December 31, 2025[51] - The average rent per occupied unit across the consolidated portfolio was $1,373 for Q4 2025[51] Regional Performance - In Texas, the weighted average rent per occupied unit was $1,438, with a 92.9% occupancy rate[49] - In Georgia, revenues decreased by 2.1% to $10,319 million in 2025 from $10,538 million in 2024[75] - Texas reported a revenue decline of 3.7%, with 2025 revenues at $8,932 million compared to $9,278 million in 2024[75] - Virginia experienced a revenue increase of 5.4%, reaching $5,123 million in 2025, up from $4,860 million in 2024[75] Operating Expenses - The company reported a payroll expense of $2,847,000 for Q4 2025, which is a 13.7% increase from Q4 2024[54] - Property operating expenses for 2025 were $43,621 million, up 1.2% from $43,095 million in 2024[75] - The company reported a 6.1% increase in property operating expenses in Georgia, rising from $1,271,000 in 2024 to $1,349,000 in 2025[73] Assets - Total assets decreased from $713,463 million in 2024 to $709,813 million in 2025, a decline of approximately 0.9%[25] - The total assets as of December 31, 2025 were $382,713 million, with BRT's share being $194,136 million[90]

Property Ownership and Acquisitions - As of December 31, 2025, the company wholly owns 21 multi-family properties with a total of 5,420 units and a carrying value of $595.2 million[20] - The company acquired an 80% interest in two multi-family properties with a total of 364 units for an aggregate purchase price of $59.5 million, including $40.1 million of mortgage debt at a weighted average interest rate of 4.34%[24] - The company has preferred equity investments in two multi-family properties with a carrying value of $17.7 million[20] - The company emphasizes acquiring multi-family properties that provide stable risk-adjusted total returns, particularly in the Southeast United States and Texas[31] - The company has been opportunistic in pursuing acquisitions without mandating specific criteria, focusing on value-add opportunities[31] - The company has a policy that any multi-family property acquisition opportunity with more than 100 units must first be offered to it before affiliated entities can acquire it[37] - The company generally pays 35% to 50% of the purchase price in cash for acquisitions, with the balance financed through mortgage debt[34] Financial Performance and Revenue - As of December 31, 2025, the total number of multi-family properties owned is 21, with a total of 5,420 units generating rental and other revenue of $95.265 million[29] - The highest rental revenue is generated from properties in Tennessee, totaling $14.341 million, accounting for 15% of the total rental revenue[29] - Properties owned by unconsolidated joint ventures generated $49.891 million in rental and other revenues, with Texas contributing 41% of this total[30] - The company reported a rental and other revenue breakdown by state, with Tennessee contributing $14.341 million (15%), Mississippi $12.956 million (14%), and Alabama $11.404 million (12%)[29] Occupancy and Rental Rates - The average physical occupancy rate across the multi-family properties is 93.9% for 2025, with specific properties like Silvana Oaks Apartments at 93.9% and Crossings of Bellevue at 97.5%[25] - The average monthly rental rate per occupied unit across the properties is not explicitly stated, but specific properties show rates such as $1,576 for Silvana Oaks and $1,449 for Avalon Apartments[25] - The average physical occupancy across the multi-family properties is generally high, with notable occupancy rates such as 97.5% for Crossings of Bellevue in Nashville, TN, and 96.6% for Village at Lakeside in Auburn, AL[25] - The average occupancy rate for the properties has shown slight fluctuations, with some properties experiencing a decrease in occupancy from previous years, such as Parkway Grande dropping to 92.8% in 2025 from 97.1% in 2021[25] Financing and Debt Management - The company refinanced four mortgages totaling $58.0 million with new mortgages totaling $87.7 million, resulting in a decrease of $1.2 million in annual principal payments but an increase of $1.8 million in annual interest expense[24] - The weighted average interest rate on mortgage debt for wholly-owned properties was 4.22% with a remaining term to maturity of 6.3 years as of December 31, 2025[45] - The weighted average interest rate for the new replacement mortgages is 4.97%, compared to 4.38% for the prior mortgages, with an expected increase in annual interest expense of $1.8 million[24] - The principal amount of mortgage debt outstanding for properties where the company is the carve-out guarantor is approximately $468 million[49] - Total principal payments due for consolidated properties in 2026 are projected to be $32.17 million, with total payments due across all properties amounting to $764.54 million[47] Employee and Operational Management - As of December 31, 2025, the company had 12 salaried employees, with one individual dedicating approximately 50% of their time to company activities[63] - The company offers a competitive benefits program, including annual cash bonuses, stock awards, and healthcare benefits, contributing to employee satisfaction and long tenure[66] - The company emphasizes employee satisfaction, as indicated by the long tenure of most employees[66] - The company is committed to professional development opportunities for employees, fostering a supportive work environment[66] - The company utilizes a shared services agreement for part-time personnel and resources, optimizing operational efficiency[64] Market Conditions and Competition - The company operates primarily in the Southeastern United States and Texas, with properties located in 11 states[20] - The company competes with larger real estate investment trusts and private investors for multi-family properties, which may affect acquisition opportunities[56] - The company anticipates challenges in acquiring properties due to competition and limited opportunities, which may affect cash flows and income expectations[16] - The company monitors its portfolio to identify properties for potential sale based on market conditions and reinvestment opportunities[38] Environmental and Regulatory Compliance - The company is subject to federal, state, and municipal environmental regulations, with potential liabilities that could be material, although no material claims are currently pending[62] - The company has no material claims or pending issues regarding environmental damage, indicating a stable compliance status[62] Leadership Changes - The company’s Chief Financial Officer, George E. Zweier, resigned effective February 27, 2026, with Isaac Kalish appointed as the new CFO[69] - Isaac Kalish has been appointed as the new Chief Financial Officer following George E. Zweier's resignation[73]

Core Viewpoint - BRT Apartments Corp. has declared a quarterly dividend of $0.25 per share and extended its share repurchase program with an increased value of $10 million [1][2]. Group 1: Dividend Announcement - The Board of Directors declared a quarterly dividend of $0.25 per share [1] - The dividend is payable on April 6, 2026, to stockholders of record as of March 27, 2026 [1] Group 2: Share Repurchase Program - The share repurchase program has been extended through December 31, 2028 [1] - The value of shares to be repurchased has been increased to $10 million [1] Group 3: Company Overview - BRT is a real estate investment trust that owns, operates, and holds interests in joint ventures for multi-family properties [2] - As of March 11, 2026, BRT owns or has interests in 31 multi-family properties with a total of 8,311 units across 11 states [2] - The company also has preferred equity investments in two multi-family properties [2]

Core Insights - BRT Apartments Corp. has successfully refinanced three maturing mortgages totaling $42.7 million, transitioning to new mortgage debt of approximately $71.9 million with a higher weighted average interest rate of 4.95% [2] Group 1: Refinancing Details - The refinanced mortgages had a weighted average interest rate of 4.36% and a remaining term to maturity of approximately nine years [2] - The company utilized $17.5 million from the refinancing proceeds to pay off the outstanding balance of its credit facility [2] Group 2: Strategic Positioning - Following the refinancing, the company is positioned to pursue future investment opportunities in its core Sunbelt markets, focusing on value-enhancing opportunities to drive long-term shareholder value [3] Group 3: Company Overview - BRT is a real estate investment trust that owns and operates multi-family properties, with interests in 31 properties comprising 8,311 units across 11 states, along with preferred equity investments in two additional properties [4]

Group 1 - BRT Apartments Corp. has experienced a decline of approximately 45% in its share value since August 2022, primarily due to anticipated higher refinancing rates and an oversupply in the Sun Belt markets [2] - The Insiders Forum, led by Chief Investment Strategist Bret Jensen, focuses on small and mid-cap stocks that insiders are purchasing, aiming to outperform the Russell 2000 benchmark over time [2] Group 2 - The Insiders Forum portfolio consists of 12-25 top stocks across various sectors that are attractively valued and have seen significant recent insider purchases [2]

Group 1 - BRT Apartments Corp. has experienced a decline of approximately 45% in its share value since August 2022, primarily due to anticipated higher refinancing rates and an oversupply in the Sun Belt markets [2] Group 2 - The Insiders Forum, led by Chief Investment Strategist Bret Jensen, focuses on small and mid-cap stocks that are attractively valued and have seen significant insider purchases [2]

Core Viewpoint - BRT Apartments Corp. has filed its quarterly report for Q3 2025, highlighting its operations and financial performance as a real estate investment trust focused on multi-family properties [1] Company Overview - BRT Apartments Corp. is a real estate investment trust that owns, operates, and holds interests in joint ventures related to multi-family properties [1] - As of November 6, 2025, the company owns or has interests in 31 multi-family properties comprising 8,311 units across 11 states [1] - The company also has preferred equity investments in two additional multi-family properties [1] Financial Reporting - The quarterly report on Form 10-Q for the quarter ended September 30, 2025, has been filed with the Securities and Exchange Commission [1] - Financial statements and supplemental information are available on the company's investor relations website under "Financials – Quarterly Results" [1]

Financial Performance - Reported net loss for Q3 2025 was $2.7 million or $0.14 per diluted share, compared to a net loss of $2.2 million or $0.12 in Q3 2024[12] - Funds from Operations (FFO) per diluted share was $0.28, down from $0.30 in Q3 2024[12] - Adjusted Funds from Operations (AFFO) per diluted share remained stable at $0.36 for both Q3 2025 and Q3 2024[12] - The company reported a net loss attributable to common stockholders of $2,707 million for the three months ended September 30, 2025, compared to a loss of $2,205 million in 2024, and a loss of $7,625 million for the nine months ended September 30, 2025, compared to $7,721 million in 2024[23] - Funds from operations (FFO) attributable to common stockholders for the three months ended September 30, 2025, were $5,215 million, down from $5,669 million in 2024, while FFO for the nine months ended September 30, 2025, increased to $16,379 million from $15,786 million in 2024[23] - The company reported a loss from continuing operations of $2,666 million for the three months ended September 30, 2025, compared to a loss of $2,477 million in 2024[21] - The company’s accumulated deficit increased to $89,306 million as of September 30, 2025, from $67,485 million as of December 31, 2024[27] - The company reported a GAAP net loss attributable to common stockholders of $(2,707) million, compared to $(2,205) million for the same period in 2024[77] - The net operating income (NOI) for the same period in 2025 was $12,689 million, a decrease from $12,990 million in 2024, representing a decline of approximately 2.3%[77] Revenue and Occupancy - Total revenues for the three months ended September 30, 2025, were $24,434 million, a slight increase from $24,396 million in the same period of 2024, while total revenues for the nine months ended September 30, 2025, rose to $72,737 million from $71,661 million in 2024[21] - The total operating revenues for the consolidated portfolio reached $24,031,000, with a net operating income (NOI) of $12,689,000, reflecting an occupancy rate of 94.7%[46] - The average occupancy rate for the properties was 94.5% in Q3 2025, compared to 94.4% in Q3 2024[14] - The consolidated portfolio had a total of 5,420 units with an average occupancy rate of 94.2% and an average rent per occupied unit of $1,366[49] - The unconsolidated properties had a total of 2,891 units, with an average occupancy rate of 94.1% and an average rent per occupied unit of $1,466[50] - The average occupancy rate across all properties improved slightly from 94.4% in 2024 to 94.7% in 2025[70] Expenses and Liabilities - Total combined operating expenses for the same period were $40,590,000, reflecting a 1.1% increase from $40,147,000 in 2024[54] - Total combined operating expenses for the third quarter of 2025 were $13,883,000, which is a 1.1% increase from $13,727,000 in 2024[52] - The payroll expenses for the nine months ended September 30, 2025, were $7,689,000, up 4.1% from $7,383,000 in 2024[54] - The real estate taxes for the same period increased by 2.5% to $10,818,000 from $10,551,000 in 2024[54] - Total liabilities increased to $527,512 million as of September 30, 2025, compared to $508,549 million as of December 31, 2024[27] Investments and Acquisitions - The company acquired two properties in Q3 2025 for a total of $59.5 million, funded through joint ventures and credit facilities[12] - The company invested $18,250 million in two joint ventures acquiring multifamily properties, with an annual return of 13% and a current return of 6% to 6.5%[28] - The company has $8,752,028 available for share repurchases under its current program as of October 31, 2025[32] - The company has acquired properties in Auburn, AL, and Savannah, GA, with a total purchase price of $59,500,000 and an 80% ownership stake in both[30] Future Projections - Revenues for 2025 are projected at $70,107 million, showing a slight decrease of 0.0% compared to 2024's $70,117 million[72] - Property Operating Expenses for 2025 are estimated at $32,649 million, an increase of 1.2% from $32,268 million in 2024[72] - Net Operating Income (NOI) for 2025 is expected to be $37,458 million, a decrease of 1.0% from $37,849 million in 2024[72] - The weighted average occupancy rate for 2025 is projected at 94.1%, a slight increase of 0.1% from 94.0% in 2024[72] - Estimated recurring capital expenditures for the year are projected at $1,550,000, while non-recurring capital expenditures are estimated at $981,000, leading to total capital expenditures of $2,531,000[37] Debt and Financing - As of October 31, 2025, the company had $17.5 million outstanding on its revolving credit facility of up to $40.0 million[12] - Debt to Enterprise Value ratio increased to 70% in Q3 2025 from 68% in Q3 2024[15] - The company has a debt service coverage ratio of 1.50 for the quarter ended September 30, 2025[43] - The total principal payments due at maturity amount to $594,528, with a weighted average interest rate of 4.11%[43] - The total debt service is used to calculate the debt service coverage ratio, indicating the company's ability to meet debt obligations[67]

Financial Performance - Total revenues for the three months ended September 30, 2025, were $24.434 million, a slight increase of 0.2% compared to $24.396 million in the same period of 2024 [116]. - Total revenues for the nine months ended September 30, 2025, increased by $1,076,000 (1.5%) to $72,737,000 compared to $71,661,000 in 2024, driven by a 0.2% increase in rental revenue and a 232.8% increase in loan interest and other income [128]. - For the three months ended September 30, 2025, FFO decreased to $5.215 million from $5.669 million in the same period of 2024, reflecting a decrease of approximately 8% [161]. - AFFO for the three months ended September 30, 2025, was $6.737 million, slightly down from $6.769 million in the prior year [161]. - For the nine months ended September 30, 2025, FFO increased to $16.379 million from $15.786 million in 2024, representing an increase of about 3.75% [161]. - AFFO for the nine months ended September 30, 2025, rose to $20.972 million compared to $19.771 million in the same period of 2024, marking an increase of approximately 6.1% [161]. - The company reported a GAAP net loss attributable to common stockholders of $(2,707,000) for the three months ended September 30, 2025, compared to $(2,205,000) in 2024 [171]. Expenses and Costs - The company incurred total expenses of $27.780 million for the three months ended September 30, 2025, reflecting a 2.0% increase from $27.242 million in the prior year [119]. - Interest expense rose to $5.882 million, an increase of 2.4% from $5.745 million in the same quarter of 2024 [119]. - Real estate operating expenses increased by 1.4% to $11.342 million, driven by higher real estate taxes, payroll, and utilities [119][120]. - Real estate operating expenses rose by $397,000 (1.2%) to $33,009,000, influenced by increased real estate taxes, utilities, repairs, and leasing expenses [131]. - Interest expense increased by $497,000 (3.0%) to $17,265,000, mainly due to additional financing costs related to the Woodlands Financing [134]. - The company’s general and administrative expenses increased to $3,937,000 for the three months ended September 30, 2025, compared to $3,811,000 in 2024, marking an increase of about 3.3% [171]. Property and Acquisitions - As of September 30, 2025, the company wholly owns 21 multi-family properties with a total of 5,420 units and a carrying value of $600.5 million [103]. - The company completed the acquisition of 1322 North, a 214-unit property for $36.5 million, with an 80% interest in the joint venture [104]. - A second acquisition, Oaks at Victory, a 150-unit property, was completed for $23 million, also with an 80% interest in the joint venture [105]. Liquidity and Financing - As of September 30, 2025, the company had available liquidity of approximately $37.1 million, including $14.6 million in cash and cash equivalents [140]. - The company anticipates needing to fund $196.3 million in balloon payments due through 2027, which may require issuing additional equity or disposing of properties if refinancing is not possible [141]. - At September 30, 2025, the company had mortgage debt of $737.6 million, with a weighted average interest rate of 4.12% for consolidated properties [143]. - The company anticipates refinancing $42.5 million in maturing mortgages with new debt of approximately $71.4 million, expecting an increase in interest expense of about $430,000 per quarter [110][111]. Economic Environment and Challenges - The company is facing challenges from an uncertain economic environment and oversupply of multi-family properties in several competitive markets [112]. - Equity in earnings of unconsolidated joint ventures decreased from $369,000 to a loss of $75,000, primarily due to $469,000 in amortization of lease intangibles from the Auburn Acquisition [123]. Operating Metrics - NOI is defined as "Rental and other revenue from real estate properties" less "Real estate operating expenses," providing a core measure of property performance [170]. - NOI is a non-GAAP measure and does not account for general and administrative expenses, interest expenses, or gains/losses as determined by GAAP [169]. - For the three months ended September 30, 2025, the Net Operating Income (NOI) decreased to $12,689,000, down from $12,990,000 in the same period of 2024, representing a decline of approximately 2.3% [171]. - For the nine months ended September 30, 2025, the NOI was $38,370,000, compared to $38,641,000 in 2024, reflecting a decrease of about 0.7% [171]. - The decrease in NOI for the three months was primarily due to a $155,000 increase in real estate operating expenses and a $146,000 decrease in rental revenue [171]. - The increase in real estate operating expenses for the nine months was $381,000 compared to the same period in 2024 [172]. Shareholder Returns - A quarterly cash dividend of $0.25 per share was paid on October 6, 2025, totaling approximately $4.7 million [151]. - The diluted shares outstanding for FFO and AFFO were 18,951,324 for the three months ended September 30, 2025, compared to 18,758,435 in the prior year [163].