BRT Apartments (BRT) Q2 2024 earnings summary

Executive summary

• Owns or has interests in 29 multi-family properties totaling 7,947 units across 11 states, mainly in the Southeast and Texas.

• Focused on multi-family real estate, operating as a REIT, with a strategy including joint ventures and alternative investments like preferred equity and bridge loans.

• Filed second quarter 2024 financial statements and Form 10-Q for the period ended June 30, 2024.

• Facing challenges from inflation, volatile interest rates, and competitive pressures, especially in markets like Nashville.

Financial highlights

• Total revenues for Q2 2024 were $23.9M, up 2.3% year-over-year; six-month revenues were $47.3M, up 2.2%.

• Net loss attributable to common stockholders was $(2.3)M for Q2 2024 and $(5.5)M for the six months, compared to net income of $11.2M and $7.1M in 2023, mainly due to a $14.7M gain on sale in 2023.

• FFO for Q2 2024 was $5.5M ($0.35/share), up from $5.3M ($0.28/share) in Q2 2023; AFFO was $6.6M ($0.35/share), down from $7.2M ($0.37/share) in Q2 2023.

• NOI for Q2 2024 was $12.7M, up $0.2M year-over-year; six-month NOI was $25.1M, up $0.4M.

Outlook and guidance

• Reduced credit facility from $60M to $40M, extended maturity to September 2027, and expects to complete $28M mortgage financing at 5.22% in August 2024.

• Proceeds from new financing to be used for property investments and general corporate purposes, including share repurchases.

• Ongoing competitive pressure in Nashville market expected to continue impacting rental income at Bells Bluff.

• Operating cash flow and available cash are insufficient to fully fund $143.7M of balloon payments due through 2026; may require refinancing, equity issuance, or property sales.