Core Viewpoint - BRT Apartments Corp. has filed its annual report on Form 10-K for the year ended December 31, 2024, 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 preferred equity investments in joint ventures [1] - As of December 31, 2024, BRT owns or has interests in 29 multi-family properties comprising 7,947 units across 11 states [1] - The company also holds preferred equity investments in two additional multi-family properties [1]

Financial Performance - Reported net loss for Q4 2024 was $2.1 million, or $(0.11) per diluted share, and for the full year 2024, the net loss was $9.8 million, or $(0.52) per diluted share[10]. - Funds from Operations (FFO) for Q4 2024 was $0.27 per diluted share, while the full year FFO was $1.12 per diluted share[10]. - Adjusted Funds from Operations (AFFO) for Q4 2024 was $0.37 per diluted share, and for the full year, it was $1.43 per diluted share[10]. - Total revenues for the three months ended December 31, 2024, were $23,969,000, a slight increase from $23,508,000 in the same period of 2023, representing a growth of 1.96%[18]. - Total revenues for 2024 reached $23,062 million, a slight increase of 0.3% compared to $22,995 million in 2023[64]. - Total revenues for the three months ended December 31, 2024, increased to $11,653 million, up from $10,541 million in the same period of 2023, representing a growth of 10.6%[74]. - Rental and other revenue for the twelve months ended December 31, 2024, reached $45,182 million, compared to $44,785 million in 2023, showing a slight increase of 0.9%[77]. Operating Income and Expenses - Combined Portfolio Net Operating Income (NOI) decreased by 4.6% in Q4 2024 and by 0.2% for the full year compared to the previous year[10]. - Total combined operating income for the year ended December 31, 2024, was $61,924, a slight decrease of 0.2% compared to $62,060 in 2023[47]. - Total expenses for the three months ended December 31, 2024, were $27,386,000, up from $25,742,000 in 2023, indicating an increase of 6.37%[18]. - Total expenses for the twelve months ended December 31, 2024, were $45,070 million, an increase from $40,248 million in 2023, reflecting a rise of 12.5%[77]. - Property operating expenses increased to $10,827 million in 2024, up 6.7% from $10,144 million in 2023[64]. Occupancy and Rental Rates - Average occupancy for the quarter ended December 31, 2024, was 93.7%, slightly up from 93.6% in the previous year[13]. - The portfolio occupancy rate for the quarter ended December 31, 2024, was 93.7%[38]. - The weighted average monthly rent per occupied unit across the consolidated portfolio was $1,371[38]. - The weighted average monthly rent per occupied unit increased to $1,371 in 2024, a 0.7% rise from $1,362 in 2023[64]. - The average rent per occupied unit across consolidated properties is $1,378, with the highest being $1,732 at Kilburn Crossing[50]. Debt and Liabilities - The company reported total debt outstanding of $599,369,000, with consolidated mortgages payable at $446,471,000[16]. - The total liabilities increased to $508,549,000 in 2024 from $481,518,000 in 2023, reflecting a rise of 5.6%[24]. - The total principal payments due at maturity for consolidated debt is $412,735,000, with a weighted average interest rate of 4.10%[33]. - The total principal payments due at maturity amount to $521,968, representing 100% of the total principal[35]. - The weighted average interest rate for the debt is 4.08% with a debt service coverage ratio of 2.09 for the quarter ended December 31, 2024[35]. Shareholder Returns and Dividends - The company declared a dividend of $0.25 per share for Q1 2025, maintaining the same dividend as the previous year[10]. - The company repurchased 10,286 shares in Q4 2024 at a weighted average price of $17.80, totaling 193,529 shares repurchased in 2024[10]. Strategic Initiatives and Future Outlook - The company expects controllable expense growth to be modest compared to 2024, with a decline in insurance expenses anticipated[11]. - The company plans to pursue additional Preferred Equity financing opportunities similar to previous transactions in 2024[11]. - Long-term, the company believes the Sunbelt region offers advantages due to pro-business states and favorable migration patterns[11]. - The company aims to enhance its market position through strategic expansions and potential acquisitions in the upcoming fiscal year[76]. Joint Ventures and Investments - The equity in earnings from unconsolidated joint ventures was $658,000 for the three months ended December 31, 2024, compared to $588,000 in 2023, showing an increase of 11.88%[20]. - The company reported equity in earnings of joint ventures of $235 million for the twelve months ended December 31, 2024, compared to $126 million in 2023, marking an increase of 86.5%[77]. - The total assets of unconsolidated joint ventures as of December 31, 2024, amounted to $329,710 million, with BRT's share being $148,859 million[78]. - Mortgages payable for the unconsolidated joint ventures were $251,112 million as of December 31, 2024, indicating a significant liability[78]. Credit Losses and Reserves - The company recorded a provision for credit loss of $270,000 for the three months ended December 31, 2024, compared to no provision in the same period of 2023[18]. - The company has implemented a reserve for credit losses under ASU 2016-13, reflecting potential credit losses related to its loan portfolio[54]. - BRT's strategy includes evaluating market conditions and macroeconomic forecasts to adjust its credit loss reserves accordingly[54].

Property Ownership and Investments - As of December 31, 2024, the company wholly owns 21 multi-family properties with a total of 5,420 units and a carrying value of $614.2 million[19] - The company has ownership interests in eight multi-family properties through unconsolidated entities, totaling 2,527 units with a net equity investment carrying value of $31.3 million[19] - The company invested an aggregate of $18.3 million in joint ventures for two multi-family properties, estimating approximately $1.2 million of interest income in 2025 from these investments[22] - The carrying value of preferred equity investments in two multi-family properties is $17.7 million[19] - The company owns other assets with a carrying value of $1.7 million through consolidated and unconsolidated subsidiaries[19] - The company invested an aggregate of $4.0 million for a 17.45% interest in a 240-unit development property located in Johns Island, SC, which is currently in lease-up as of January 1, 2024[33] Financial Performance - As of December 31, 2024, the total number of multi-family properties owned by the company is 21, with a total of 5,420 units generating $94.773 million in rental and other revenues, accounting for 100% of total revenues[26] - The average monthly rental rate per occupied unit across the properties increased from $1,486 in 2023 to $1,539 in 2024, representing a growth of approximately 3.6%[23] - The average physical occupancy rate for the properties was 94.4% in 2024, slightly down from 94.7% in 2023[23] - The company has a significant presence in Texas, with 3 properties generating $21.105 million in rental and other revenues, which is 46% of total joint venture revenues[27] - Approximately 75% of the company's 2024 revenues were generated from properties located in the Southeast, with an additional 10% from Texas[78] - The average rental revenue from properties in Tennessee was $14.048 million, representing 15% of total rental and other revenues in 2024[26] Share Repurchase and Stock Information - The company repurchased 193,529 shares of common stock for approximately $3.5 million, averaging $18.07 per share[22] - The board of directors increased the share repurchase program value to $10 million, extending it through December 31, 2026[21] Debt and Financing - A $27.4 million mortgage was obtained for the Woodland Trails-LaGrange, GA property, maturing in September 2031 with a fixed interest rate of 5.22%[22] - The company amended its credit facility with Valley National Bank, reducing borrowing capacity from $60 million to $40 million and extending maturity to September 2027[22] - As of December 31, 2024, the company had a total mortgage debt of $412.735 million for consolidated properties and $237.706 million for unconsolidated properties, with varying interest rates[90] - The total principal payments due for all multi-family properties is projected to be $703.3 million, with $451.3 million due from consolidated properties and $251.9 million from unconsolidated joint ventures[46] - The weighted average annual interest rate on fixed-rate mortgage debt for wholly owned properties is 4.09% with a remaining term to maturity of 6.1 years[45] Market and Economic Risks - The company faces risks from unfavorable market conditions that could adversely affect rental revenues, occupancy levels, and property values[74] - The company competes with various entities for property acquisitions and financing, with larger competitors having significant advantages[75] - The company faces risks from economic conditions, including inflation, interest rates, and tenant payment issues, which could decrease revenues or increase costs[110] - Climate change poses risks to properties located in coastal areas, potentially leading to increased costs and reduced demand for housing[114] Operational Risks - The company relies on property management companies for operations, and any failure in their performance could lead to decreased occupancy and increased expenses[80] - The company is working to acquire properties directly, which may involve greater risks compared to acquisitions with joint venture partners[81] - Joint venture investments introduce additional risks, including potential disagreements with partners over property management and financial decisions[83] - The company faces risks related to joint venture partners, including potential disputes and differing business objectives, which could adversely affect operations[87] Compliance and Regulatory Risks - The company believes it operates in substantial compliance with the Fair Housing Act and the Americans with Disabilities Act, mitigating potential legal risks[58][57] - The company is subject to regulatory risks, including potential changes to U.S. federal income tax laws that could adversely affect its business[98] - Compliance with the Americans with Disabilities Act (ADA) may require significant capital expenditures, adversely affecting financial condition and results[102] - The company is subject to various federal, state, and local regulatory requirements, which could lead to fines or unanticipated expenditures affecting cash flow and operations[103] Employee and Management Information - As of December 31, 2024, the company had eight full-time employees and utilized part-time personnel under a shared services agreement, with expenses allocated based on estimated time devoted[60] - The aggregate fees for services provided by related parties were $1.7 million in 2025, up from $1.62 million in 2024 and $1.54 million in 2023[61] - The company maintains a competitive benefits program to support employee retention and satisfaction, contributing to a long-tenured workforce[62] Insurance and Liability Risks - The company maintains all-risk property insurance for its multi-family properties, but coverage may be insufficient to compensate for losses from casualty events[85] - Insufficient insurance coverage could adversely affect the company's operating results and portfolio value[86] - Environmental liabilities could impact property values and result in substantial remediation costs for the company[100]

Core Points - BRT Apartments Corp. declared a quarterly dividend of $0.25 per share, payable on April 4, 2025, to stockholders of record as of March 27, 2025 [1] - The Board of Directors approved the extension of the share repurchase program through December 2026, increasing the repurchase value to $10 million [1] Company Overview - BRT is a real estate investment trust (REIT) that owns, operates, and makes preferred equity investments in joint ventures owning multi-family properties [2] - As of December 31, 2024, BRT owns or has interests in 29 multi-family properties with a total of 7,947 units across 11 states, along with preferred equity investments in two additional multi-family properties [2]

Core Insights - Albert Anthony is a Croatian-American media personality who has gained over 1,000 followers on investor platforms since 2023, focusing on markets and stocks [1] - He is set to launch a new book titled "Financial Markets: Growing A Dividend Income Portfolio" in 2025, which aligns with his ongoing article series on the same topic [1] - Albert Anthony has a background in management and information systems, having worked in the IT department of a top-10 financial firm [1] Company Overview - Albert Anthony operates under the brand Albert Anthony & Co., a sole proprietorship registered in Austin, Texas [1] - The company focuses on building a dividend portfolio through the Future Investor Fund, which is managed by Albert Anthony himself [1] Educational Background - Albert Anthony has completed degrees and certificates from various institutions, including Drew University, Corporate Finance Institute, UVA Darden School of Business, CompTIA, and Microsoft [1] Public Engagement - He has participated in numerous business and innovation conferences in Southeast Europe and has spoken at startup and digital nomad events in Croatia and Austin [1]

Core Viewpoint - Investors in BRT Apartments Corp. should closely monitor the stock due to significant movements in the options market, particularly the Mar 21, 2025 $5 Call, which has high implied volatility [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future price movement, with high levels suggesting a potential significant move or an upcoming event that could lead to a rally or sell-off [2] - The current high implied volatility for BRT Apartments may signal a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4] Group 2: Analyst Sentiment - BRT Apartments holds a Zacks Rank of 4 (Sell) in the REIT and Equity Trust - Residential industry, which is in the bottom 18% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while one analyst has lowered the estimate, resulting in a decrease of the Zacks Consensus Estimate from 37 cents per share to 36 cents [3]

Group 1 - BRT Realty (BRT) reported quarterly funds from operations (FFO) of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, but down from $0.41 per share a year ago, indicating a 12.2% year-over-year decline [1] - The company achieved revenues of $24.4 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.50%, and showing an increase from $23.85 million in the same quarter last year [2] - BRT has surpassed consensus FFO estimates two times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Group 2 - The stock has underperformed, losing about 3.2% since the beginning of the year, while the S&P 500 has gained 24.3% [3] - The current consensus FFO estimate for the upcoming quarter is $0.37 on revenues of $23.83 million, and for the current fiscal year, it is $1.42 on revenues of $94.71 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Residential is in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Core Viewpoint - BRT Apartments Corp. has filed its quarterly report for Q3 2024, highlighting its operations and financial performance in the multi-family real estate sector [1]. Group 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 September 30, 2024, the company owns or has interests in 29 multi-family properties, totaling 7,947 units across 11 states [1]. Group 2: Financial Reporting - The quarterly report on Form 10-Q for the quarter ended September 30, 2024, 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 a net loss of $2.2 million, or $(0.12) per diluted share, for Q3 2024, with Funds from Operations (FFO) of $0.30 per diluted share and Adjusted Funds from Operations (AFFO) of $0.36 per diluted share[7]. - The company reported a net loss attributable to common stockholders of $2,205,000 for the three months ended September 30, 2024, compared to a net loss of $1,494,000 for the same period in 2023[17]. - GAAP net loss attributable to common stockholders for Q3 2024 was $(0.12) per share, compared to $(0.08) in Q3 2023[22]. - Funds from operations (FFO) attributable to common stockholders for the three months ended September 30, 2024, were $5,669,000, compared to $5,749,000 in the prior year[21]. - Adjusted funds from operations (AFFO) for the three months ended September 30, 2024, were $6,769,000, down from $7,692,000 in the same period of 2023[21]. - Total revenues for the three months ended September 30, 2024, were $24,396,000, an increase of 2.3% compared to $23,852,000 for the same period in 2023[17]. - Total revenues for the nine months ended September 30, 2024, were $71,253,000, an increase from $69,704,000 in the same period of 2023[17]. - Total revenues for the third quarter of 2024 reached $5,616,000, representing a 2.4% increase compared to $5,486,000 in 2023[56]. - Total revenues for the nine months ended September 30, 2024, were $33,529, compared to $34,244 for the same period in 2023, indicating a decrease of 2.1%[71]. Operating Income and Expenses - Net operating income for the three months ended September 30, 2024, was $15,981,000, compared to $15,979,000 for the same period in 2023[16]. - The company’s same store NOI for the third quarter of 2024 was $12,719,000, slightly up from $12,706,000 in 2023[64]. - Total combined operating income for Q3 2024 was $15,664,000, a slight increase of 0.6% compared to $15,566,000 in Q3 2023[36]. - Total combined operating expenses for Q3 2024 were $13,725,000, up 5.1% from $13,062,000 in Q3 2023[36]. - Total expenses for the three months ended September 30, 2024, were $27,242,000, up from $26,725,000 in the prior year, reflecting a 1.9% increase[17]. - Real estate operating expenses for the three months ended September 30, 2024, were $5,578, up from $5,023 in the same period of 2023, an increase of 11%[67]. Debt and Financing - Maintained a revolving credit facility of up to $40.0 million, with no outstanding balance, maturing in September 2027[7]. - The company had total debt outstanding of $600,472,000 as of September 30, 2024, which includes $447,147,000 in mortgages payable[16]. - Debt to Enterprise Value ratio was 68% as of September 30, 2024, compared to 67% in the previous year[14]. - Total principal payments due at maturity for 2024 amount to $451 million, with a weighted average interest rate of 4.92%[29]. - The weighted average interest rate for total principal payments due at maturity is 4.06%[28]. - The total principal payments due thereafter amount to $41,205 million, representing 36% of total principal payments due at maturity[29]. Occupancy and Rental Rates - Average occupancy across the portfolio was 94.4% as of September 30, 2024, consistent with the previous year[11]. - The average occupancy rate across the portfolio was 94.1% for the nine months ended September 30, 2024[34]. - The average rent per occupied unit across the consolidated portfolio was $1,363 for the quarter ended September 30, 2024[32]. - The average rent per occupied unit in Q3 2024 was $1,514, with variations across different properties[39]. - The average monthly rent per occupied unit is expected to rise to $1,363, which is a 0.8% increase from $1,352 in 2023[54]. Shareholder Activity - The company repurchased 6,563 shares during Q3 2024 at a weighted average price of $17.55[7]. - The company repurchased a total of 183,243 shares at an average cost of $18.07 per share during the year[24]. Future Outlook - The operational environment is expected to remain stable, with new supply growth muting rental rate increases until at least part of 2025[8]. - The company anticipates a disciplined capital allocation strategy and a focus on stabilizing occupancy in 2024, with potential growth opportunities in 2025[9]. - Total revenues for 2024 are projected at $23,773 million, reflecting a 2.7% increase from $23,142 million in 2023[51]. - The net operating income (NOI) for 2024 is expected to be $12,719 million, a slight increase of 0.1% compared to $12,706 million in 2023[51]. - Average occupancy for 2024 is projected at 94.5%, showing a marginal increase of 0.1% from 94.4% in 2023[54].

Revenue Performance - For the three months ended September 30, 2024, total revenues increased by 2.3% to $24.396 million compared to $23.852 million for the same period in 2023[91]. - Total revenues for the nine months ended September 30, 2024, were $71,661,000, an increase of $1,552,000 or 2.2% compared to $70,109,000 for the same period in 2023[100]. - Rental and other revenue from real estate properties rose by 2.8% to $24.177 million, primarily due to a net deferral of rent concessions of $539,000 and a net increase in rental rates of $159,000[91]. - Rental and other revenue from real estate properties increased by $1,549,000 or 2.2% to $71,253,000, driven by a $952,000 net increase in rent concessions deferrals and a $780,000 increase in rental rates[100]. Operating Expenses - Real estate operating expenses increased by 5.7% to $11.187 million, driven by higher real estate tax accruals and insurance premiums[93][94]. - Total expenses decreased by $1,601,000 or 1.9% to $80,556,000, primarily due to a reduction in depreciation and amortization expenses[102]. - Interest expense increased by $191,000 or 1.2% to $16,768,000, mainly due to additional costs related to Woodlands Financing and increased interest rates on junior subordinated notes[102]. - The company experienced a $1.0 million increase in real estate operating expenses for the nine months ended September 30, 2024, compared to the same period in 2023[144]. Financial Position - The company had available liquidity of $67.5 million as of November 6, 2024, including $27.5 million in cash and cash equivalents[111]. - As of September 30, 2024, the company had mortgage debt of $705.2 million, with a weighted average interest rate of 4.09% and a remaining term to maturity of approximately 6.3 years[114]. - The credit facility was amended to reduce borrowing capacity from $60 million to $40 million and extend maturity to September 2027[85]. - The company had no outstanding balance on its credit facility as of September 30, 2024, indicating a strong liquidity position[146]. Earnings and Dividends - The company paid a quarterly cash dividend of $0.25 per share on October 2, 2024, amounting to approximately $4.7 million for the most recent quarter[121]. - FFO for the three months ended September 30, 2024, decreased to $5.669 million from $5.749 million in the same period last year, primarily due to increased real estate operating expenses and interest expenses[132]. - AFFO for the three months ended September 30, 2024, decreased to $6.769 million from $7.692 million in the same period last year, reflecting similar factors affecting FFO[132]. - For the nine months ended September 30, 2024, FFO decreased to $15.786 million from $16.330 million, primarily due to increased operating expenses and a decline in rental revenue[132]. Property Performance - The company owns 21 multi-family properties with a total of 5,420 units and a carrying value of $619.5 million as of September 30, 2024[81]. - The Nashville property, Bells Bluff, is facing competitive pressure, leading to short-term rent concessions to maintain occupancy[87]. - For the three months ended September 30, 2024, Net Operating Income (NOI) increased to $12.99 million, up from $12.93 million in the same period of 2023, reflecting a $667,000 increase in rental revenue[143]. - For the nine months ended September 30, 2024, NOI rose to $38.64 million, compared to $38.14 million in the corresponding period of 2023, driven by a $1.5 million increase in rental revenue[144]. Challenges and Outlook - The company anticipates challenges in acquiring properties and controlling operating expenses due to the uncertain economic environment[83]. - The company anticipates operating expenses, mortgage amortization, and interest expenses totaling $107.1 million from October 1, 2024, through December 31, 2027, which may require additional equity issuance or property disposals if refinancing is not feasible[112]. Losses and Adjustments - The company reported a GAAP net loss attributable to common stockholders of $2.21 million for the three months ended September 30, 2024, compared to a loss of $1.49 million in the same period of 2023, representing a variance of $711,000[143]. - The provision for taxes for the three months ended September 30, 2024, was a loss of $310,000, compared to a loss of $122,000 in the same period of 2023, reflecting a variance of $188,000[143]. - The company recognizes limitations in using FFO and AFFO, emphasizing the importance of GAAP measures like net income and cash flows for performance evaluation[130].