BRT Apartments (US:BRT)2025-05-08 20:10Revenue and Income - Total revenues for the three months ended March 31, 2025, increased by 3.0% to $24.1 million compared to $23.4 million in the same period of 2024[100]. - Rental and other revenue from real estate properties rose by 1.4% to $23.6 million, driven by a net increase in rental rates across approximately two-thirds of the portfolio[100][106]. - Loan interest and other income surged by 363.8% to $487,000, primarily due to interest income from preferred equity investments[100][101]. - Funds from operations (FFO) for the three months ended March 31, 2025, increased to $5.718 million from $4.627 million in the prior year, primarily due to increases in rental revenues[131]. - Adjusted funds from operations (AFFO) for the same period rose to $7.388 million from $6.434 million, driven by factors contributing to the increase in FFO[132]. - The company received $748,000 in distributions from joint venture properties during the quarter ended March 31, 2025, contributing to liquidity and cash flow[115]. - The company generated $293,000 of loan interest and other income from preferred equity investments in two multi-family properties during the same quarter[116]. Expenses and Financial Performance - Total expenses increased by 0.6% to $26.8 million, with real estate operating expenses slightly decreasing by 0.3% to $10.6 million[102]. - GAAP Net loss attributable to common stockholders improved to $(2,352,000) in Q1 2025 from $(3,171,000) in Q1 2024, a positive variance of $819,000[137]. - Interest expense for the three months ended March 31, 2025, was $5,676,000, an increase of $153,000 from $5,523,000 in the same period of 2024[137]. - General and administrative expenses for Q1 2025 were $4,070,000, slightly down from $4,152,000 in Q1 2024[137]. - The provision for taxes decreased to $58,000 in Q1 2025 from $78,000 in Q1 2024, a reduction of $20,000[137]. Liquidity and Debt - As of April 30, 2025, available liquidity was $59.5 million, including $19.5 million in cash and cash equivalents[108]. - The company anticipates $211.6 million in balloon payments due through 2027, which may require additional equity issuance or property disposals if refinancing is not achieved[109]. - Mortgage debt stood at $701.3 million as of March 31, 2025, with a weighted average interest rate of 4.09% for consolidated properties[111]. - Junior subordinated notes outstanding amounted to $37.4 million, with an interest rate of 6.55% as of March 31, 2025[112]. - The company maintains a minimum tangible net worth requirement of $140 million as part of the credit facility covenants[114]. - A 100 basis point increase in interest rates would raise annual interest expense on junior subordinated notes by approximately $374,000[138]. - The interest rate on junior subordinated notes was 6.55% as of March 31, 2025[138]. - The company had no outstanding balance on its credit facility as of March 31, 2025[138]. - As of May 1, 2025, there was no outstanding balance on the credit facility, and the full $40 million is available for borrowing[113]. Operational Performance - Equity in earnings of unconsolidated joint ventures rose to $413,000, up from $228,000, attributed to improved operating results and increased occupancy rates[107]. - For the three months ended March 31, 2025, Net Operating Income (NOI) increased to $13,069,000, up from $12,719,000 in the same period of 2024, representing a variance of $350,000[137]. - The increase in NOI was primarily driven by a $321,000 increase in rental revenue compared to the corresponding period in 2024[137]. - Same store Net Operating Income for the three months ended March 31, 2025, was $12,747,000, an increase of $298,000 from $12,449,000 in 2024[137]. Strategic Initiatives - The company is pursuing alternative investments and joint ventures due to challenges in the acquisition environment and limited funds available for property acquisitions[98]. - The credit facility with VNB allows the company to borrow up to $40 million, with a maximum of $25 million allocated for operating expenses[113]. - The underlying properties in joint ventures are subject to mortgage debt of $251.1 million, which is not reflected on the consolidated balance sheet[115]. - The company’s preferred equity investments have a carrying value of $17.7 million and are structurally subordinate to $51.3 million of mortgage debt[116].