BRT Apartments (BRT)2025-03-12 20:41Financial 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].