BRT Apartments Corp. (BRT) Bundle
A Brief History of BRT Apartments Corp.
BRT Apartments Corp., a publicly traded real estate investment trust (REIT), has been engaged primarily in the ownership and management of multi-family residential properties. As of 2024, the company has undergone significant transformations and faced various market challenges that have influenced its operational and financial trajectories.
Company Overview
Founded in 1972, BRT Apartments Corp. is listed on the New York Stock Exchange under the ticker symbol BRT. Over the years, the company has focused on acquiring, owning, and operating multi-family properties across the United States. As of September 30, 2024, BRT owned 23 properties with approximately 7,600 units across several states.
Financial Performance
In the nine months ended September 30, 2024, BRT reported total revenues of $71.7 million, a slight increase from $70.1 million in the same period in 2023. However, the company faced a net loss attributable to common stockholders of $7.7 million for the same period, compared to a net income of $5.6 million in 2023.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $71.7 million | $70.1 million |
| Net (Loss) Income | $(7.7) million | $5.6 million |
| Basic Earnings per Share | $(0.41) | $0.30 |
| Diluted Earnings per Share | $(0.41) | $0.27 |
Operational Highlights
As of September 30, 2024, BRT's total assets were valued at approximately $717.7 million, an increase from $710.0 million at the end of 2023. The company’s real estate properties were valued at $621.4 million, net of accumulated depreciation of $99.9 million. The company has continued to invest in property improvements to enhance rental revenues.
For the three months ended September 30, 2024, the company reported rental and other revenue from real estate properties of $24.2 million, up from $23.5 million in the same quarter of 2023. This increase was driven by a rise in rental rates and a slight growth in occupancy levels across its portfolio.
| Operational Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Rental Revenue | $24.2 million | $23.5 million |
| Real Estate Operating Expenses | $11.2 million | $10.6 million |
| Total Expenses | $27.2 million | $26.7 million |
Debt and Financing
As of September 30, 2024, BRT had a total debt obligation of approximately $484.3 million, which includes $451.4 million in mortgages payable and $37.4 million in junior subordinated notes. The weighted average interest rate on the company's mortgage payables was reported at 4.09% with a remaining term to maturity of approximately 6.3 years. Interest expense for the nine months ended September 30, 2024, totaled $16.8 million, up from $16.6 million in the previous year.
| Debt Metric | 2024 | 2023 |
|---|---|---|
| Total Debt Obligations | $484.3 million | $459.6 million |
| Weighted Average Interest Rate | 4.09% | 4.32% |
| Interest Expense (9 Months) | $16.8 million | $16.6 million |
Shareholder Returns
BRT has maintained a consistent dividend policy, paying out $0.25 per share quarterly. In 2024, the company distributed approximately $14.0 million in dividends, reflecting its commitment to returning value to shareholders despite operating losses.
Throughout 2024, BRT continued its share repurchase program, buying back 183,243 shares at an average price of $18.08, amounting to $3.3 million. This strategy aims to enhance shareholder value by reducing the number of shares outstanding.
A Who Owns BRT Apartments Corp. (BRT)
Shareholder Composition
As of September 30, 2024, BRT Apartments Corp. had a total of approximately 17,796,206 shares of common stock outstanding. The shareholder composition includes both institutional and individual investors.
Institutional Ownership
Institutional investors hold a significant portion of BRT Apartments Corp. shares. Notable institutional shareholders include:
- BlackRock, Inc. - 8.5% ownership
- Vanguard Group, Inc. - 7.2% ownership
- State Street Corporation - 5.1% ownership
Insider Ownership
Insiders, including executives and board members, own a notable percentage of the shares:
- Fredric H. Gould - 2.3% ownership
- Management Team - collectively own approximately 4.5% of the shares
Recent Stock Performance
The stock performance of BRT has shown fluctuations throughout 2024. The stock price as of September 30, 2024, was approximately $17.55 per share. The company repurchased 183,243 shares at an average price of $18.08 during the nine months ended September 30, 2024.
Financial Overview
For the nine months ended September 30, 2024, BRT reported total revenues of $71.661 million, with a net loss attributable to common stockholders of $7.721 million. The weighted average interest rate on the Company’s mortgage payables was 4.41% as of September 30, 2024.
| Ownership Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 20.8% | 3,708,000 |
| Insiders | 6.8% | 1,208,000 |
| Retail Investors | 72.4% | 12,880,206 |
Recent Developments
In 2024, BRT Apartments Corp. has engaged in various investment activities, including partnerships with joint ventures for multi-family properties. The company has invested an aggregate of $18.3 million in joint ventures for new property acquisitions.
Dividends and Earnings
BRT has maintained a quarterly dividend rate of $0.25 per share, resulting in a total dividend payout of approximately $13.949 million for the nine months ended September 30, 2024.
Summary of Financial Metrics
| Metric | Value |
|---|---|
| Total Revenue (9M 2024) | $71.661 million |
| Net Loss (9M 2024) | $(7.721 million) |
| Weighted Average Interest Rate | 4.41% |
| Quarterly Dividend | $0.25 per share |
| Shares Outstanding | 17,796,206 |
BRT Apartments Corp. (BRT) Mission Statement
Company Overview
BRT Apartments Corp. is a real estate investment trust (REIT) that focuses on acquiring and managing multi-family residential properties. The company’s mission is to enhance shareholder value through the acquisition, development, and management of high-quality multi-family properties in desirable locations across the United States.
Financial Performance
As of September 30, 2024, BRT reported total assets of $717.7 million, an increase from $709.9 million as of December 31, 2023. The company's total liabilities stood at $508.0 million, compared to $481.5 million at the end of the previous year.
| Financial Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Assets | $717.7 million | $709.9 million |
| Total Liabilities | $508.0 million | $481.5 million |
| Equity | $209.8 million | $228.5 million |
| Net Income (Loss) | $(7.6) million | $5.7 million |
| Weighted Average Shares Outstanding | 17,796,206 | 17,851,715 |
Revenue Streams
BRT's primary revenue source comes from rental income generated by its multi-family properties. For the three months ended September 30, 2024, the company reported rental and other revenue of $24.2 million, up from $23.5 million in the same period of 2023.
| Revenue Source | Q3 2024 | Q3 2023 |
|---|---|---|
| Rental Revenue | $24.2 million | $23.5 million |
| Interest and Other Income | $219,000 | $342,000 |
| Total Revenue | $24.4 million | $23.9 million |
Operating Expenses
For the three months ended September 30, 2024, BRT reported total expenses of $27.2 million, compared to $26.7 million in the same period of 2023. The increase in expenses was primarily driven by higher real estate operating expenses and interest expenses.
| Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Real Estate Operating Expenses | $11.2 million | $10.6 million |
| Interest Expense | $5.7 million | $5.6 million |
| General and Administrative | $3.8 million | $4.0 million |
| Depreciation and Amortization | $6.5 million | $6.5 million |
| Total Expenses | $27.2 million | $26.7 million |
Debt Structure
As of September 30, 2024, BRT had total mortgage debt of $705.2 million, with a weighted average interest rate of 4.09%. The company’s junior subordinated notes totaled $37.4 million, maturing in April 2036, with an interest rate of 7.52%.
| Debt Type | Amount (in millions) | Interest Rate | Maturity |
|---|---|---|---|
| Mortgage Debt | $705.2 | 4.09% | 6.3 years (average) |
| Junior Subordinated Notes | $37.4 | 7.52% | April 2036 |
| Credit Facility | $0 | 7.70% | September 2027 |
Market Position and Strategy
BRT Apartments Corp. continues to focus on strategic acquisitions to enhance its portfolio. Recent investments include an aggregate of $18.3 million to joint ventures that acquired multi-family properties in Wilmington, North Carolina, and Kennesaw, Georgia.
Conclusion
The mission of BRT Apartments Corp. is to create value for its shareholders through strategic property acquisitions and effective management of its multi-family residential portfolio, ensuring a stable revenue stream and growth potential in the competitive real estate market.
How BRT Apartments Corp. (BRT) Works
Business Model
BRT Apartments Corp. focuses on acquiring, owning, and managing multi-family residential properties across the United States. The company primarily operates through joint ventures and aims to enhance shareholder value by generating consistent income through rental revenues.
Financial Performance
As of September 30, 2024, BRT Apartments reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $24,396,000 | $23,852,000 | 2.3% |
| Net (Loss) Income | $(2,167,000) | $(1,460,000) | 48.3% |
| Net Operating Income (NOI) | $12,990,000 | $12,927,000 | 0.5% |
| Weighted Average Shares Outstanding | 17,796,206 | 17,851,715 | -0.3% |
| Earnings per Share (Basic) | $(0.12) | $(0.08) | 50.0% |
Revenue Breakdown
The revenue for the nine months ended September 30, 2024, was broken down as follows:
| Source | Amount ($) |
|---|---|
| Rental and Other Revenue | $71,253,000 |
| Interest and Other Income | $408,000 |
Expenses Overview
For the three months ended September 30, 2024, total expenses were reported as follows:
| Expense Type | Amount ($) |
|---|---|
| Real Estate Operating Expenses | $11,187,000 |
| Interest Expense | $5,745,000 |
| General and Administrative | $3,811,000 |
| Depreciation and Amortization | $6,499,000 |
| Total Expenses | $27,242,000 |
Debt Obligations
As of September 30, 2024, BRT Apartments Corp. had the following debt obligations:
| Debt Type | Amount ($) |
|---|---|
| Mortgages Payable | $447,147,000 |
| Junior Subordinated Notes | $37,400,000 |
| Total Debt Obligations | $484,305,000 |
Cash Flow Metrics
For the nine months ended September 30, 2024, BRT Apartments reported cash flow metrics as follows:
| Cash Flow Type | Amount ($) |
|---|---|
| Net Cash Provided by Operating Activities | $16,562,000 |
| Net Cash Used in Investing Activities | $(1,288,000) |
| Net Cash Provided by Financing Activities | $8,701,000 |
| Net Increase in Cash | $23,975,000 |
Equity Structure
As of September 30, 2024, the equity structure of BRT Apartments Corp. was as follows:
| Equity Component | Amount ($) |
|---|---|
| Common Stock | $178,000 |
| Additional Paid-In Capital | $270,406,000 |
| Accumulated Deficit | $(60,716,000) |
| Total Equity | $209,767,000 |
Market Position and Strategy
BRT Apartments Corp. continues to leverage its portfolio of multi-family properties to generate consistent rental income while managing its operational expenses effectively. The company has also engaged in joint ventures to expand its market reach and invest in new property acquisitions.
Future Outlook
Looking ahead, BRT Apartments Corp. will focus on managing its debt obligations while pursuing opportunities for growth through strategic acquisitions and enhancing operational efficiencies across its property portfolio.
How BRT Apartments Corp. (BRT) Makes Money
Revenue Streams
BRT Apartments Corp. primarily generates revenue through the following channels:
- Rental and Other Revenue from Real Estate Properties: For the three months ended September 30, 2024, BRT reported rental revenue of $24,177,000, a 2.8% increase from $23,510,000 in the same period of 2023. For the nine months ended September 30, 2024, rental revenue totaled $71,253,000, up from $69,704,000 in 2023, reflecting a 2.2% increase.
- Interest and Other Income: This category reported $219,000 for the three months ended September 30, 2024, down from $342,000 in 2023. For the nine months, it increased slightly to $408,000 from $405,000.
| Period | Rental Revenue | Interest and Other Income | Total Revenue |
|---|---|---|---|
| Three Months Ended September 30, 2024 | $24,177,000 | $219,000 | $24,396,000 |
| Three Months Ended September 30, 2023 | $23,510,000 | $342,000 | $23,852,000 |
| Nine Months Ended September 30, 2024 | $71,253,000 | $408,000 | $71,661,000 |
| Nine Months Ended September 30, 2023 | $69,704,000 | $405,000 | $70,109,000 |
Operating Expenses
Operating expenses for BRT include real estate operating expenses, interest expenses, general and administrative expenses, and depreciation. For the three months ended September 30, 2024, total expenses were $27,242,000, compared to $26,725,000 in 2023. For the nine months, total expenses were $80,556,000, down from $82,157,000 in the previous year.
| Expense Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Real Estate Operating Expenses | $11,187,000 | $10,583,000 | $32,612,000 | $31,565,000 |
| Interest Expense | $5,745,000 | $5,581,000 | $16,768,000 | $16,577,000 |
| General and Administrative | $3,811,000 | $4,017,000 | $11,776,000 | $11,920,000 |
| Depreciation and Amortization | $6,499,000 | $6,544,000 | $19,400,000 | $22,095,000 |
Net Operating Income (NOI)
Net Operating Income (NOI) is a critical measure of BRT's profitability from its rental properties. For the three months ended September 30, 2024, NOI was $12,990,000, slightly up from $12,927,000 in 2023. For the nine months ended September 30, 2024, NOI reached $38,641,000, compared to $38,139,000 in 2023.
| Period | NOI |
|---|---|
| Three Months Ended September 30, 2024 | $12,990,000 |
| Three Months Ended September 30, 2023 | $12,927,000 |
| Nine Months Ended September 30, 2024 | $38,641,000 |
| Nine Months Ended September 30, 2023 | $38,139,000 |
Debt Obligations
BRT's financial strategy includes managing its debt effectively. As of September 30, 2024, the company reported total mortgage debt of $447,147,000 with a weighted average interest rate of 4.09%. Junior subordinated notes amounted to $37,400,000, with an interest rate of 7.52%.
| Debt Type | Amount (in thousands) | Interest Rate |
|---|---|---|
| Mortgages Payable | $447,147 | 4.09% |
| Junior Subordinated Notes | $37,400 | 7.52% |
Equity and Shareholder Returns
BRT Apartments Corp. has a total stockholder's equity of $209,868,000 as of September 30, 2024. The company has distributed dividends of $0.25 per share, with a total dividend payout of $4,678,000 for the three months ended September 30, 2024.
| Equity Item | Amount (in thousands) |
|---|---|
| Total Stockholder's Equity | $209,868 |
| Dividends Distributed (3 months ended September 30, 2024) | $4,678 |
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Resources:
- BRT Apartments Corp. (BRT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of BRT Apartments Corp. (BRT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View BRT Apartments Corp. (BRT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.