Core Viewpoint - BRT Apartments Corp. has acquired Oaks at Victory, a 150-unit apartment complex in Savannah, Georgia, marking its first investment in the area [1][2][4] Acquisition Details - The property was purchased for $23.0 million, which includes a $15.7 million mortgage [3] - The mortgage has a maturity date in 2031 and an interest rate of 2.71%, with two years of interest-only payments remaining [3] - BRT borrowed $8.0 million from its credit facility to facilitate the acquisition [3] Financial Position - As of October 6, 2025, BRT has $17.5 million outstanding on its $40.0 million credit facility, which has a current interest rate of 6.63% [3] - The company plans to pay off the credit facility debt using proceeds from scheduled refinancings expected in December 2025 [3] Strategic Goals - The acquisition aligns with the company's strategy to invest in growing markets in the Southeast, aiming to enhance stockholder value through opportunities that drive AFFO and NAV per share growth [4] - BRT currently owns or has interests in 31 multi-family properties with a total of 8,311 units across 11 states [4]

Group 1: Dividend Announcement - BRT Apartments Corp. declared a quarterly dividend of $0.25 per share, payable on October 6, 2025, to stockholders of record as of September 24, 2025 [1] Group 2: Management Changes - Matthew Gibbons has been appointed as chief accounting officer effective immediately, while Isaac Kalish will become chief financial officer upon the retirement of the current CFO, George Zweier, expected in the first quarter of 2026 [2] - Both Gibbons and Kalish are certified public accountants, with Gibbons joining BRT in 2025 and Kalish in 2004 [2] Group 3: Company Overview - BRT is a real estate investment trust (REIT) that owns, operates, and holds interests in joint ventures for multi-family properties [3] - As of September 11, 2025, BRT owns or has interests in 30 multi-family properties comprising 8,161 units across 11 states, along with preferred equity investments in two multi-family properties [3]

Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Core Viewpoint - BRT Apartments Corp. has filed its quarterly report for Q2 2025, highlighting its operations and financial performance as a real estate investment trust focused on multi-family properties [1] Group 1: Company Overview - BRT Apartments Corp. is a real estate investment trust (REIT) that owns, operates, and holds interests in joint ventures related to multi-family properties [1] - As of August 7, 2025, BRT owns or has interests in 30 multi-family properties comprising 8,161 units across 11 states [1] - The company also has preferred equity investments in two additional multi-family properties [1] Group 2: Financial Reporting - The quarterly report on Form 10-Q for the quarter ended June 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 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]

Financial Performance - Reported a net loss of $2.4 million or $(0.12) per diluted share for Q1 2025, an improvement from a net loss of $3.2 million or $(0.17) in Q1 2024[13] - Total revenues for the three months ended March 31, 2025, increased to $24,106,000, up from $23,403,000 in the same period of 2024, representing a growth of 3%[22] - The net loss attributable to common stockholders for Q1 2025 was $2,352,000, an improvement from a net loss of $3,171,000 in Q1 2024, reflecting a reduction of approximately 26%[22] - NAREIT Funds from operations attributable to common stockholders increased to $5,718,000 in Q1 2025, compared to $4,627,000 in Q1 2024, marking a growth of 23.6%[25] - Adjusted funds from operations per diluted common share rose to $0.39 in Q1 2025, up from $0.35 in Q1 2024, indicating an increase of 11.4%[27] - Total revenues for 2025 reached $23,185 million, a 1.1% increase from $22,934 million in 2024[65] - Same store Net Operating Income (NOI) for 2025 was $12,747 million, up 2.4% from $12,449 million in 2024[68] - For the three months ended March 31, 2025, total revenues were $11,709,000, an increase from $10,624,000 for the same period in 2024, representing an increase of 10.2%[73] - Net income for the three months ended March 31, 2025, was $133,000, compared to a net loss of $475,000 for the same period in 2024, indicating a significant turnaround[73] Operational Metrics - Funds from Operations (FFO) increased by 20% to $0.30 per diluted share in Q1 2025, compared to $0.25 in Q1 2024[13] - Adjusted Funds from Operations (AFFO) rose by 11% to $0.39 per diluted share in Q1 2025, up from $0.35 in Q1 2024[13] - Combined Portfolio Net Operating Income (NOI) increased by 2.2% in Q1 2025 compared to the prior year[13] - Average monthly rental revenue per occupied unit was $1,403 in Q1 2025, compared to $1,396 in Q1 2024[16] - The combined same store Net Operating Income for both consolidated and unconsolidated properties was $15,656 million in Q1 2025, up from $15,317 million in Q1 2024[71] - Weighted average occupancy increased to 93.7% in 2025 from 93.3% in 2024, reflecting a 0.4% improvement[67] - The total units at period end for consolidated properties is 5,420, with a weighted average occupancy of 93.7%[46] - The total units in the portfolio amount to 7,947, with a weighted average occupancy of 92.5% across all properties[51] - The average rent per occupied unit is $1,485, with the highest average rent recorded at $1,836 for Bell's Bluff in W. Nashville, TN[51] Shareholder Activities - The company repurchased 78,724 shares at a weighted average price of $17.55 during Q1 2025, with an additional 63,356 shares repurchased at $15.84 post-March 31, 2025[13] - The company repurchased a total of 78,724 shares during the first quarter of 2025 at an average cost of $17.55 per share, with an additional $8,752,000 available for future repurchases[32] Debt and Financing - The company maintains a revolving credit facility of $40 million, with no outstanding balance and maturity in September 2027[13] - Total liabilities decreased to $505,524,000 as of March 31, 2025, down from $508,549,000 at the end of 2024[29] - The debt service coverage ratio for the quarter ended March 31, 2025, is reported at 1.60[43] - The weighted average interest rate for total principal payments is 4.08%[43] - Total principal payments due for 2025 amount to $18,856 million, with 4% of total principal payments due at maturity[41] - The total principal payments due for 2026 are projected at $74,622 million, representing 17% of total principal payments due[41] - The total principal payments due for 2027 are $46,190 million, which is 10% of total principal payments due[41] - The total principal payments due thereafter (after 2029) are $212,841 million, accounting for 47% of total principal payments due[41] Investment Activities - The company invested $18,250,000 in two joint ventures acquiring multifamily properties, with expected annual returns of 13%[30] - The company plans to pursue additional Preferred Equity financing opportunities similar to previous transactions in 2024[13] Market Outlook - The operational environment is expected to remain stable, with new supply growth moderating in Sunbelt markets until 2026[14] - Long-term outlook remains positive for the Sunbelt region due to pro-business states and favorable migration patterns[13] Property Management - The average age of properties in the consolidated portfolio is 24 years, with the newest property, Stono Oaks, built in 2023[51] - The property Kilburn Crossing in Fredericksburg, VA, has the highest occupancy rate at 97.9%[51] - The average occupancy for properties in lease-up, such as Stono Oaks, is currently at 77.8%[51] - The company has properties under unconsolidated joint ventures, with a weighted average occupancy of 93.5% across these assets[51] Capital Expenditures - Estimated recurring capital expenditures for the company are projected at $1,448,000, while estimated non-recurring capital expenditures are $1,343,000[37] - The company rehabilitated 16 units with estimated rehab costs of $123,000 per unit, projecting an annualized ROI of 22%[34] Other Financial Metrics - Total assets as of March 31, 2025, amounted to $327,928,000, with BRT's pro rata share being $148,320,000[75] - Total expenses for the three months ended March 31, 2025, were $11,666,000, compared to $11,117,000 for the same period in 2024, an increase of 4.9%[73] - Interest expense for the three months ended March 31, 2025, was $2,745,000, slightly down from $2,778,000 in the same period in 2024[73] - Cash and cash equivalents as of March 31, 2025, were $5,531,000, with BRT's pro rata share being $2,467,000[75] - Other equity earnings for the three months ended March 31, 2025, were $90,000, compared to $18,000 for the same period in 2024, showing a substantial increase[73]