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].

Company Overview - BRT Apartments Corp. (NYSE: BRT) is a multifamily residential REIT that has been operating since 1972, yet it remains overlooked by many market participants, presenting potential opportunities for analysts to explore [1]. Market Position - The company operates in the multifamily residential sector, which is a significant area of focus for investors looking for stable income and growth potential [1].

Core Viewpoint - BRT Apartments has underperformed the Vanguard Real Estate Index Fund in 2024 but is expected to outperform going forward due to attractive valuation metrics and potential benefits from Fed rate cuts [1][10]. Company Overview - BRT Apartments is a residential REIT focused on the Sun Belt region, with approximately 81% of net operating income (NOI) from its consolidated portfolio and 19% from joint ventures [2]. - The consolidated portfolio's NOI is primarily derived from Mississippi (16%), Tennessee (14.6%), and Alabama (12.2%) [2]. Operational Overview - In Q2 2024, BRT reported an adjusted FFO of $0.35 per share, a 5% decrease year-over-year, influenced by adjustments for straight-line rent and rent concessions [5]. - Occupancy remained flat year-over-year at 94.3%, with net operating income increasing by 1.8% year-over-year [6]. - BRT's operational performance is weaker compared to peers like Independence Realty Trust, with lower occupancy growth and NOI growth [7]. 2024 Outlook Commentary - The company anticipates that new supply will limit rent growth until the second half of 2024, focusing on maintaining stable occupancy until rental rates can increase [8]. - A more favorable transaction environment is expected in the latter half of 2024, particularly for smaller operators facing capital challenges [8]. Capital Structure - As of Q2 2024, BRT's net debt stood at $553 million, representing 62% of its $897 million enterprise value [9]. - The weighted average interest rate for BRT's debt is 4.03%, with a significant portion of floating-rate debt that will benefit from anticipated Fed rate cuts [11]. Prospects and Valuation - BRT is projected to deliver an adjusted FFO of approximately $1.35 to $1.40 per share in 2024, translating to an attractive adjusted FFO multiple of about 12.75 [10]. - The market-implied cap rate based on NOI is around 7.1%, which is favorable compared to peers [10]. - There is potential for improvement in general and administrative expenses, which could make BRT an acquisition target in the future [10].