BRT Apartments (US:BRT)2025-05-08 20:11Financial 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]