BRT Apartments (BRT) - 2025 Q4 - Annual Results

Financial Performance - Reported a net loss of $4.3 million for Q4 2025, translating to $(0.23) per diluted share, and a full-year net loss of $11.9 million, or $(0.63) per diluted share[12] - Total revenues for the three months ended December 31, 2025, were $24,291,000, a slight increase from $23,969,000 in the same period of 2024[19] - Total revenues for 2025 reached $93,567 million, a 0.4% increase from $93,179 million in 2024[75] - Total expenses for the three months ended December 31, 2025, were $27,759,000, up from $27,386,000 in the same period of 2024[19] - Total expenses for the twelve months ended December 31, 2025 were $51,705 million, compared to $45,070 million in 2024, indicating a rise of 14.7%[88] Funds from Operations - Funds from Operations (FFO) for Q4 2025 was $0.26 per diluted share, while the full-year FFO was $1.12 per diluted share[12] - Adjusted Funds from Operations (AFFO) for Q4 2025 was $0.34 per diluted share, with a full-year AFFO of $1.45 per diluted share[12] - Funds from operations for the three months ended December 31, 2025, were $4,877,000, slightly down from $5,133,000 in the same period of 2024[22] - Adjusted funds from operations per common share for the three months ended December 31, 2025, were $0.34, compared to $0.37 in 2024[23] Net Operating Income - Combined Same Store Portfolio Net Operating Income (NOI) increased by 0.2% in Q4 2025 compared to Q4 2024, but decreased by 0.8% for the full year 2025 compared to 2024[12] - Total consolidated revenues for Q4 2025 reached $28,886,000, reflecting a 1.1% increase from Q4 2024[54] - Total combined net operating income for Q4 2025 was $15,301,000, a slight increase of 0.2% compared to Q4 2024[54] - Same store NOI for the twelve months ended December 31, 2025 was $49,946 million, down from $50,084 million in 2024, reflecting a decrease of 0.3%[80] Property Acquisitions and Investments - Acquired 1322 North, a 214-unit property in Auburn, AL, for $36.5 million, and Oaks at Victory, a 150-unit property in Savannah, GA, for $23.0 million in 2025[12] - The company invested $18,250,000 in two joint ventures, with expected annual returns of 13%[26] - The company acquired two properties in 2025, with a total purchase price of $59,500,000[28] Share Repurchase and Dividends - Total shares repurchased in 2025 reached 321,060 at a weighted average price of $15.53[12] - Declared a dividend of $0.25 per share for Q1 2026, consistent with the previous quarter[12] - The company's stock repurchase activity for the year totaled 321,060 shares at an average cost of $15.53 per share, amounting to $4,986,394[30] - The company has authorized up to $10,000,000 for share repurchases through December 31, 2028, with $5,037,000 remaining available as of February 27, 2026[31] Debt and Liabilities - Total debt outstanding was $652,316,000, with consolidated mortgages payable at $471,083,000[17] - Total liabilities increased from $508,549 million in 2024 to $532,613 million in 2025, an increase of approximately 4.7%[25] - The weighted average interest rate on total principal payments due is 4.19%[43] - The debt service coverage ratio for the quarter ended December 31, 2025, was 1.37[44] Occupancy and Rental Revenue - Average occupancy rate for Q4 2025 was 93.4%, slightly down from 93.6% in Q4 2024[14] - Average monthly rental revenue per occupied unit increased to $1,419 in Q4 2025 from $1,405 in Q4 2024[14] - The overall occupancy rate for the consolidated portfolio was 94.3% as of December 31, 2025[51] - The average rent per occupied unit across the consolidated portfolio was $1,373 for Q4 2025[51] Regional Performance - In Texas, the weighted average rent per occupied unit was $1,438, with a 92.9% occupancy rate[49] - In Georgia, revenues decreased by 2.1% to $10,319 million in 2025 from $10,538 million in 2024[75] - Texas reported a revenue decline of 3.7%, with 2025 revenues at $8,932 million compared to $9,278 million in 2024[75] - Virginia experienced a revenue increase of 5.4%, reaching $5,123 million in 2025, up from $4,860 million in 2024[75] Operating Expenses - The company reported a payroll expense of $2,847,000 for Q4 2025, which is a 13.7% increase from Q4 2024[54] - Property operating expenses for 2025 were $43,621 million, up 1.2% from $43,095 million in 2024[75] - The company reported a 6.1% increase in property operating expenses in Georgia, rising from $1,271,000 in 2024 to $1,349,000 in 2025[73] Assets - Total assets decreased from $713,463 million in 2024 to $709,813 million in 2025, a decline of approximately 0.9%[25] - The total assets as of December 31, 2025 were $382,713 million, with BRT's share being $194,136 million[90]