BRT Apartments (BRT) Q3 2024 earnings summary

Executive summary

• Owns 21 wholly-owned and 8 joint venture multi-family properties (total 7,947 units) in 11 states, mainly in the Southeast and Texas.

• Faced headwinds from inflation, volatile interest rates, and increased competition, especially at Bells Bluff and Avondale Station.

• Pursuing joint venture and alternative investments due to a challenging acquisition environment and limited available funds.

• Amended credit facility in July 2024, reducing borrowing capacity to $40M and extending maturity to September 2027.

• Sold a cooperative apartment in NY for $1.1M and invested $18.3M in two new joint venture properties post-quarter.

Financial highlights

• Q3 2024 total revenues rose 2.3% year-over-year to $24.4M, driven by higher rent concessions and rental rates.

• Net loss attributable to common stockholders was $(2.2)M for Q3 2024, compared to $(1.5)M in Q3 2023.

• Nine-month 2024 total revenues increased 2.2% year-over-year to $71.7M; net loss was $(7.7)M versus net income of $5.6M in 2023.

• Q3 2024 FFO was $5.7M ($0.35/share), AFFO was $6.8M ($0.36/share), both down from prior year.

• Same store NOI for Q3 2024 was $12.7M, nearly flat year-over-year.

Outlook and guidance

• Management expects continued pressure on rental rates and occupancy at certain properties due to new supply and economic uncertainty.

• Plans to use remaining proceeds from recent mortgage financing for future transactions and general corporate purposes.

• Dividends expected to be treated as return of capital for 2024; board evaluates dividend quarterly based on liquidity and performance.