Financial Performance - Reported net loss per diluted share for Q2 2025 was $2.57 million or $0.14, compared to a net loss of $2.35 million or $0.13 in Q2 2024[12] - The company reported a net loss attributable to common stockholders of $2,566,000 for the three months ended June 30, 2025, compared to a loss of $2,345,000 in 2024, indicating a 9.4% increase in losses[22] - For the three months ended June 30, 2025, GAAP net loss attributable to common stockholders was $(2,566) thousand, compared to $(2,345) thousand for the same period in 2024[79] Funds from Operations - Funds from Operations (FFO) remained stable at $0.29 per diluted share for both Q2 2025 and Q2 2024[12] - Funds from operations (FFO) attributable to common stockholders for the three months ended June 30, 2025, were $5,446,000, slightly down from $5,490,000 in 2024, a decrease of 0.8%[26] - Adjusted Funds from Operations (AFFO) increased to $0.36 per diluted share in Q2 2025, up from $0.35 in Q2 2024[12] - Adjusted funds from operations (AFFO) for the three months ended June 30, 2025, were $6,847,000, compared to $6,568,000 in 2024, reflecting a growth of 4.3%[26] Revenue and Income - Total revenues for the three months ended June 30, 2025, were $24,197,000, an increase from $23,862,000 in the same period of 2024, representing a growth of 1.4%[22] - Total combined revenues for Q2 2025 were $28,817 million, a decrease of 0.5% compared to $28,972 million in Q2 2024[54] - Total combined operating income decreased by 3.4% to $15,100 million in Q2 2025 compared to $15,627 million in Q2 2024[54] - For the six months ended June 30, 2025, total revenues were $10,977 million, a slight decrease of 0.4% from $11,022 million in 2024[78] Operating Metrics - Combined Portfolio Net Operating Income (NOI) was $15.1 million for Q2 2025, a decrease from $15.6 million in the same period last year[12] - The total operating revenues for the consolidated portfolio for the quarter ended June 30, 2025, were $23,729,000, with total expenses of $11,117,000, resulting in a net operating income (NOI) of $12,612,000[48] - Net Operating Income (NOI) for the same period was $12,296 thousand, a decrease of 3.0% from $12,681 thousand in 2024[79] Occupancy and Rent - Average occupancy rate was 94.1% in Q2 2025, slightly down from 94.3% in Q2 2024[14] - Weighted average monthly rent per occupied unit increased to $1,399 in Q2 2025, compared to $1,387 in Q2 2024[14] - The weighted average rent per occupied unit across the consolidated portfolio is $1,358[48] - The average occupancy rate across all properties improved slightly from 93.9% in 2024 to 94.1% in 2025[72] Expenses - Real estate operating expenses for the three months ended June 30, 2025, were $11,117,000, up from $10,846,000 in 2024, marking an increase of 2.5%[22] - Total combined operating expenses increased by 2.8% to $13,717 million in Q2 2025 from $13,345 million in Q2 2024[54] - Total expenses for the six months ended June 30, 2025, were $23,343 thousand, up from $22,292 thousand in 2024, indicating an increase of 4.7%[85] Share Repurchase - The company repurchased 63,356 shares at a weighted average price of $15.84 during Q2 2025[12] - The company repurchased a total of 142,080 shares year to date, costing $2,380,000, with an average cost per share of $16.79[34] - The company has $8,752,000 available for share repurchases under its repurchase program as of August 1, 2025[34] Debt and Capital Expenditures - Debt to Enterprise Value ratio increased to 69% in Q2 2025, compared to 65% in Q2 2024[16] - The company has a debt service coverage ratio of 1.56 for the quarter ended June 30, 2025[45] - Estimated recurring capital expenditures for the company are projected at $1,728,000, while non-recurring capital expenditures are estimated at $1,388,000, totaling $3,116,000[39] Joint Ventures and Investments - The company invested $18,250,000 in two separate joint ventures for multifamily properties, with expected annual returns of 13%[32] - BRT's equity in earnings from joint ventures for the three months ended June 30, 2025, was $299 thousand, down from $389 thousand in 2024, a decrease of 23.2%[81] - The total assets of the unconsolidated joint ventures as of June 30, 2025, amounted to $326,934 thousand, with BRT's pro rata share being $148,042 thousand[87]

Part I - Financial Information This section encompasses the company's financial statements, management's discussion, market risks, and internal controls [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for BRT Apartments Corp. for the quarter and six months ended June 30, 2025, including balance sheets, statements of operations, equity, cash flows, and comprehensive notes detailing the company's financial position, performance, and significant accounting policies [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Presents the company's financial position, assets, liabilities, and equity at specific reporting dates Consolidated Balance Sheet Highlights (Amounts in thousands) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | Change | | :----------------------------------- | :-------------------------- | :-------------------------- | :------- | | Total Assets | $699,559 | $713,463 | $(13,904) | | Real estate properties, net | $607,066 | $615,915 | $(8,849) | | Investments in unconsolidated joint ventures | $30,023 | $31,344 | $(1,321) | | Cash and cash equivalents | $23,645 | $27,856 | $(4,211) | | Total Liabilities | $507,510 | $508,549 | $(1,039) | | Mortgages payable, net | $444,983 | $446,471 | $(1,488) | | Total Equity | $192,049 | $204,914 | $(12,865) | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Details the company's revenues, expenses, and net loss for the reported periods Consolidated Statements of Operations Highlights (Amounts in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | % Change | | :----------------------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Total Revenues | $24,197 | $23,862 | $335 | 1.4% | | Total Expenses | $27,148 | $26,625 | $523 | 2.0% | | Net loss attributable to common stockholders | $(2,566) | $(2,345) | $(221) | 9.4% | | Basic and diluted EPS | $(0.14) | $(0.13) | $(0.01) | 7.7% | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | % Change | | :----------------------------------- | :----------------------------- | :----------------------------- | :----- | :------- | | Total Revenues | $48,303 | $47,265 | $1,038 | 2.2% | | Total Expenses | $53,985 | $53,314 | $671 | 1.3% | | Net loss attributable to common stockholders | $(4,918) | $(5,516) | $598 | (10.8)% | | Basic and diluted EPS | $(0.26) | $(0.30) | $0.04 | (13.3)% | [Consolidated Statements of Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Equity) Outlines changes in stockholders' equity, including net loss, distributions, and stock transactions - Total Equity decreased from **$204,914k** at December 31, 2024, to **$192,049k** at June 30, 2025[16](index=16&type=chunk) - Common stock distributions for the six months ended June 30, 2025, totaled **$(9,457)k** (two quarterly payments of **$0.25** per share)[16](index=16&type=chunk) - Compensation expense for restricted stock and restricted stock units for the six months ended June 30, 2025, was **$2,277k**[16](index=16&type=chunk) - Shares repurchased for the six months ended June 30, 2025, amounted to **$2,386k**[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities Consolidated Statements of Cash Flows Highlights (Dollars in Thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :----------------------------------- | :----------------------------- | :----------------------------- | :------- | | Net cash provided by operating activities | $8,724 | $7,594 | $1,130 | | Net cash used in investing activities | $(2,239) | $(675) | $(1,564) | | Net cash used in financing activities | $(12,514) | $(12,594) | $80 | | Net decrease in cash, cash equivalents, restricted cash and escrows | $(6,029) | $(5,675) | $(354) | | Cash, cash equivalents, restricted cash and escrows at end of period | $34,550 | $26,100 | $8,450 | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies, financial statement items, and significant events - BRT Apartments Corp. operates as a REIT, owning **21** wholly-owned multi-family properties (**5,420** units) and interests in **8** unconsolidated joint ventures (**2,527** units), primarily located in the Southeast U.S. and Texas[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - The company declared a quarterly cash dividend of **$0.25** per share and repurchased **142,080** shares for **$2,386k** during the six months ended June 30, 2025. All 2022 RSU grants were forfeited due to unmet performance conditions[39](index=39&type=chunk)[41](index=41&type=chunk)[48](index=48&type=chunk) - Preferred equity investments in two joint ventures, treated as loans, generated **$624k** in interest income for the six months ended June 30, 2025, with a net carrying value of **$17,698k**[62](index=62&type=chunk)[64](index=64&type=chunk) - Total debt obligations, net, were **$482,156k** at June 30, 2025. The weighted average interest rate on mortgages payable was **4.09%**, and junior subordinated notes bore an interest rate of **6.54%**[73](index=73&type=chunk)[74](index=74&type=chunk)[79](index=79&type=chunk) - On July 10, 2025, a joint venture acquired a **214**-unit multi-family property in Auburn, AL, for **$36.5M**, with BRT contributing **$10.7M** and borrowing **$7M** from its credit facility[72](index=72&type=chunk)[78](index=78&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting the challenging economic and market environment, strategic responses to limited acquisition opportunities, and detailed analysis of revenue, expense, and non-GAAP performance metrics for the three and six months ended June 30, 2025 [Cautionary Statement Regarding Forward-Looking Statements](index=20&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) Warns readers about the inherent uncertainties and risks associated with forward-looking information - The report contains forward-looking statements subject to various risks and uncertainties, including economic conditions, real estate market changes, competition, financing availability, and regulatory changes[95](index=95&type=chunk)[96](index=96&type=chunk) - Readers are cautioned not to place undue reliance on these statements, which speak only as of the report date, and the company undertakes no obligation to update them[97](index=97&type=chunk) [Overview](index=21&type=section&id=Overview) Describes the company's business, market environment, and strategic responses to challenges - BRT Apartments Corp. is an internally managed REIT focused on multi-family properties, with a portfolio of **21** wholly-owned and **8** unconsolidated joint venture properties, primarily in the Southeast U.S. and Texas[98](index=98&type=chunk) - The company faces challenges from an uncertain national economic environment (inflation, recession, volatile interest rates) and a competitive multi-family market with limited acquisition opportunities and oversupply in several key markets[100](index=100&type=chunk) - To address the challenging acquisition environment, the company is pursuing alternative investments like preferred equity and bridge loans, and acquiring properties through joint ventures[101](index=101&type=chunk) - Mortgage interest expense is anticipated to increase as **$174.5 million** of debt matures through 2027, requiring refinancing at generally higher current interest rates[102](index=102&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance, revenues, and expenses for the reported periods - **Three Months Ended June 30, 2025 vs 2024:** - Total revenues increased by **1.4%** to **$24,197k**, driven by a **457.1%** increase in loan interest and other income to **$468k**, offsetting a slight **0.2%** decrease in rental and other revenue - Total expenses rose by **2.0%** to **$27,148k**, primarily due to a **2.5%** increase in real estate operating expenses and a **3.8%** rise in interest expense - Net loss attributable to common stockholders increased by **9.4%** to **$(2,566)k**, while equity in earnings of unconsolidated joint ventures decreased by **$90k**[13](index=13&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - **Six Months Ended June 30, 2025 vs 2024:** - Total revenues increased by **2.2%** to **$48,303k**, largely due to a **405.3%** increase in loan interest and other income to **$955k**, alongside a **0.6%** increase in rental and other revenue - Total expenses increased by **1.3%** to **$53,985k**, mainly from a **1.1%** rise in real estate operating expenses and a **3.3%** increase in interest expense - Net loss attributable to common stockholders decreased by **10.8%** to **$(4,918)k**, and equity in earnings of unconsolidated joint ventures increased by **$95k**[13](index=13&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[121](index=121&type=chunk)[124](index=124&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's ability to meet short-term and long-term financial obligations and funding strategies - Available liquidity as of August 1, 2025, was approximately **$49.0 million**, comprising **$16.0 million** in cash and cash equivalents and **$33 million** available under its credit facility[127](index=127&type=chunk) - The company faces significant mortgage debt balloon payments totaling **$211.7 million** maturing through 2027, which operating cash flow is insufficient to cover, potentially requiring refinancing, equity issuance, or property dispositions[128](index=128&type=chunk) - Total mortgage debt at June 30, 2025, was **$699.3 million**, with a weighted average interest rate of **4.09%** for consolidated properties and **4.26%** for unconsolidated subsidiaries[130](index=130&type=chunk) - The **$40 million** credit facility, with an interest rate of **6.95%** at June 30, 2025, had no outstanding balance at period-end but was used for a **$7 million** borrowing post-period for an acquisition[132](index=132&type=chunk) - The company maintains its REIT status, requiring distribution of at least **90%** of ordinary taxable income, and paid a quarterly cash dividend of **$0.25** per share in July 2025[136](index=136&type=chunk)[137](index=137&type=chunk) [Funds from Operations, Adjusted Funds from Operations and Net Operating Income](index=28&type=section&id=Funds%20from%20Operations,%20Adjusted%20Funds%20from%20Operations%20and%20Net%20Operating%20Income) Presents key non-GAAP financial metrics used to evaluate the company's operational performance Non-GAAP Performance Metrics (Amounts in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | | :----------------------------------- | :------------------------------- | :------------------------------- | :----- | | NAREIT FFO attributable to common stockholders | $5,446 | $5,490 | $(44) | | Adjusted FFO attributable to common stockholders | $6,847 | $6,568 | $279 | | Net Operating Income (NOI) | $12,612 | $12,932 | $(320) | | Same store Net Operating Income | $12,296 | $12,681 | $(385) | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :----------------------------------- | :----------------------------- | :----------------------------- | :------- | | NAREIT FFO attributable to common stockholders | $11,164 | $10,117 | $1,047 | | Adjusted FFO attributable to common stockholders | $14,235 | $13,002 | $1,233 | | Net Operating Income (NOI) | $25,681 | $25,651 | $30 | | Same store Net Operating Income | $25,043 | $25,130 | $(87) | [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) This section discusses the company's exposure to market risks, primarily focusing on interest rate risk affecting its variable-rate junior subordinated notes and credit facility, while noting that mortgage debt is fixed-rate - All of the company's mortgage debt bears interest at fixed rates[158](index=158&type=chunk) - Junior subordinated notes bear interest at a variable rate of three-month term SOFR plus **226** basis points, which was **6.54%** at June 30, 2025[158](index=158&type=chunk)[79](index=79&type=chunk) - The credit facility bears interest at one-month term SOFR plus **250** basis points, with an interest rate of **6.95%** at June 30, 2025, and no outstanding balance at that date[158](index=158&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) - A **100** basis point increase in interest rates would increase the annual interest expense on junior subordinated notes by approximately **$374k**[158](index=158&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms that management evaluated the effectiveness of the company's disclosure controls and procedures as of June 30, 2025, concluding they were effective, and reported no material changes to internal control over financial reporting during the quarter - Disclosure controls and procedures were evaluated under management's supervision and concluded to be effective as of June 30, 2025[159](index=159&type=chunk) - There have been no material changes in internal control over financial reporting during the quarter ended June 30, 2025[160](index=160&type=chunk) Part II – Other Information Covers unregistered equity sales, other disclosures, and regulatory exhibits [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases and purchases by an affiliated entity during the second quarter of 2025 - The company repurchased **63,356** shares of common stock at an average price of **$15.84** per share, totaling **$1,004k**, during April 2025[163](index=163&type=chunk) - An affiliated entity, Gould Investors L.P., purchased **76,966** shares of common stock at an average price of **$15.57** per share, totaling **$1,198,090**, during May and June 2025[163](index=163&type=chunk) - As of April 30, 2025, **$8,752,028** of shares remained available for repurchase under the company's program[163](index=163&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) This section discloses information regarding executive trading plans, recent equity incentive awards, forfeiture of prior RSU grants, and the impact of the newly enacted "One Big Beautiful Bill Act" on REIT tax provisions - No officers or directors had any contract, instruction, or written plan for the purchase or sale of securities intended to satisfy Rule 10b5-1(c) conditions during the three months ended June 30, 2025[166](index=166&type=chunk) - On July 11, 2025, approximately **173,700** shares subject to restricted stock units (RSUs) were awarded, generally vesting in 2028 subject to market and performance conditions[167](index=167&type=chunk) - All 2022 RSU grants were forfeited as of June 30, 2025, because none of the performance and market conditions for vesting had been met[168](index=168&type=chunk) - The "One Big Beautiful Bill Act" (OBBBA), enacted July 4, 2025, increases the REIT asset test limit for securities of Taxable REIT Subsidiaries (TRSs) to **25%** (from **20%**) for taxable years ending after December 31, 2025[170](index=170&type=chunk)[171](index=171&type=chunk) - The OBBBA also permanently extends the **20%** deduction for "qualified REIT dividends" and eases limitations on interest deductibility by modifying the definition of "adjusted taxable income" for taxable years beginning after December 21, 2025[172](index=172&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) Lists all supplementary documents and certifications filed with the quarterly report - Includes certifications from the President and Chief Executive Officer, Senior Vice President—Finance, and Vice President and Chief Financial Officer pursuant to Sections **302** and **906** of the Sarbanes-Oxley Act of 2002[174](index=174&type=chunk) - Financial information from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, is formatted in Inline XBRL (Exhibit **101**)[174](index=174&type=chunk)

Core Viewpoint - BRT Apartments Corp. has acquired a 214-unit Class A apartment complex named 1322 North in Auburn, Alabama for $36.5 million, enhancing its portfolio in a growing market with high demand for quality housing [1][3][4]. Group 1: Acquisition Details - The acquisition of 1322 North complements BRT's existing property, The Village at Lakeside, located one mile away, near major employers Auburn University and East Alabama Medical Center [2]. - The property consists of 214 apartment units across 14 residential buildings, constructed in 2002 [2]. - BRT's acquisition involved a joint venture where it holds an 80% equity interest, with a total equity contribution of $13.4 million, of which BRT contributed $10.7 million [3]. Group 2: Financial Structure - The acquisition was financed through a $24.4 million mortgage, maturing in 2032, with a fixed interest rate of 5.38% and interest-only payments until maturity [3]. - BRT borrowed $7.0 million from its $40 million credit facility, which has a current interest rate of 6.87%, intending to pay off this balance through future mortgage financings and refinancings by March 31, 2026 [3]. Group 3: Strategic Intent - The CEO of BRT stated that the acquisition aligns with the company's strategy of investing in Southeast markets characterized by low supply and high demand, aiming to drive growth in AFFO and NAV per share over time [4]. - As of July 21, 2025, BRT owns or has interests in 30 multi-family properties totaling 8,161 units across 11 states [4].

Group 1 - The company BRT Apartments operates as a REIT, focusing on owning and managing apartment properties [1] - Crude Value Insights provides an investment service centered on the oil and natural gas sector, emphasizing cash flow and growth potential [1] - Subscribers benefit from a comprehensive stock model account and detailed cash flow analyses of exploration and production firms [2]

Core Viewpoint - BRT Apartments Corp. has filed its quarterly report for Q1 2025, highlighting its operations and financial status 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 March 31, 2025, the company owns or has interests in 29 multi-family properties, totaling 7,947 units across 11 states [1] Financial Reporting - The quarterly report on Form 10-Q for the quarter ended March 31, 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]

Exhibit 99.1 SUPPLEMENTAL FINANCIAL INFORMATION FOR THREE MONTHS ENDED MARCH 31, 2025 May 8, 2025 60 Cutter Mill Rd., Great Neck, NY 11021 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS We consider some of the information set forth herein to contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, with respect to our expectations fo ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2025 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 001-07172 BRT APARTMENTS CORP. (Exact name of Registrant as specified in its charter) Maryland 13-2755856 incorporation or organization) (State or other jurisdic ...

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]