BRT APARTMENTS CORP. (NYSE: BRT), a real estate investment trust
that owns, operates, and, to a lesser extent, holds interests in
joint ventures that own multi-family properties, today reported
results for the first quarter ended March 31, 2023.
Highlights
- Reported results for the first quarter of 2023 of a net loss of
$4.1 million, or $(0.21) per diluted share, Funds from Operations,
or FFO, of $0.28 per diluted share and Adjusted Funds from
Operations, or AFFO, of $0.36 per diluted share.
- Equity in earnings of unconsolidated joint ventures was
$815,000 in the first quarter of 2023 and $1.2 million for the
corresponding 2022 quarter.
- Combined Portfolio NOI increased 1.0% for the first quarter
when compared with the prior-year period; the Company estimates
that it would have reported a Combined Portfolio NOI increase of
3.6% after adjusting for the difference between contractual
insurance premiums and the timing effect of early cancellation
costs related to the implementation of the new master insurance
policy plus water damage repairs at a property and storm-related
expenses, the latter of which is expected to be largely recovered
through insurance claims.
- Fully repaid outstanding borrowings of $19 million on the $60
million credit facility with proceeds from a fixed-rate mortgage
loan secured by Silvana Oaks in North Charleston, SC.
- Affirmed full year 2023 guidance and accompanying assumptions
previously issued on March 14, 2023.
See the reconciliations provided later in this release of FFO,
AFFO and Combined Portfolio NOI, to net income, as calculated in
accordance with GAAP, and the definitions of such terms under
"Non-GAAP Financial Measures and Definitions."
Jeffrey A. Gould, President and Chief Executive Officer stated,
“The underlying performance of the portfolio was in line with our
expectations with combined portfolio revenue up 7.1%, average
monthly rental revenue up 10.9% and average occupancy at 94.2%.
Combined portfolio NOI increased 1.0% due to these rental increases
but was offset primarily by the impact from higher insurance and
storm-related expenses. We expect sequential improvement in
Combined Portfolio NOI through the year. The spring leasing season
is well underway, and we are seeing operational improvements with
Combined Portfolio rent spreads in April up 4.6% on a blended
basis. Those positive trends to date in the second quarter should
enable us to outperform the winter months and take advantage of the
strong demand in our markets.”
“We are on schedule with the expected disposition of Chatham
Court Reflections in the second quarter and the acquisition of The
Winterfield at Midlothian by year end. We have significantly
reduced our outstanding exposure to higher interest rates and have
no debt maturities until 2025. Our $73 million in liquidity also
enhances the flexibility to selectively pursue new opportunities
that meet our stringent underwriting criteria.”
First Quarter Financial and Operating
Results
- Net loss attributable to common stockholders for the quarter
ended March 31, 2023 was $4.1 million, or $0.21 per diluted share,
compared to net income attributable to common stockholders of $11.5
million, or $0.62 per diluted share, for the corresponding 2022
quarter. The prior-year period included BRT’s $13.0 million (or
$0.70 per diluted share) share of a gain from the sale of a
property owned by an unconsolidated subsidiary.
- FFO was $5.3 million, or $0.28 per diluted share, in the
current quarter, compared to $6.5 million, or $0.35 per diluted
share, in the corresponding 2022 quarter, primarily due to
increased corporate level interest expense and increased
amortization of restricted stock and restricted stock unit
expense.
- AFFO was $6.9 million, or $0.36 per diluted share, in the first
quarter of 2023, compared to AFFO of $7.2 million, or $0.39 per
diluted share, in the corresponding 2022 quarter, primarily due to
increased corporate level interest expense.
- Equity in earnings of unconsolidated joint ventures for the
current quarter was $815,000 compared to $1.2 million in the
corresponding quarter of the prior year.
- Combined Portfolio NOI in the current quarter increased by 1.0%
to $15.5 million; the Company estimates that it would have reported
Combined Portfolio NOI of 3.6% after adjusting for the difference
between contractual insurance premiums and the timing effect of
early cancellation costs related to the implementation of the new
master insurance policy plus water damage repairs at a property and
storm-related expenses, the latter of which is largely expected to
be recovered through insurance claims. The Company estimates the
combined impact from all of these expenses totaled approximately
$396,000 in the first quarter.
- Diluted per share net income, FFO and AFFO during the quarter
ended March 31, 2023 reflect the approximate 567,000 increase in
weighted average shares of common stock outstanding, primarily due
to stock issuances pursuant to the Company’s at-the-market
offering, equity incentive and dividend reinvestment programs
during 2022.
- For leases signed during the first quarter in the Combined
Portfolio, the Company experienced a 6.7% increase on renewal
leases, a 3.3% increase on new leases and a 5.3% increase on a
blended basis. The rent-to-income ratio for all new leases signed
in the first quarter is 25%. For leases signed during the month of
April 2023, the Company experienced a 5.6% increase on renewals, a
3.5% increase on new leases and a 4.6% increase on a blended
basis.
Transaction and Financing Activity
- As previously reported, on February 24, 2023, the Company
closed on a new, interest-only mortgage secured by Silvana Oaks in
the amount of $21.2 million at a fixed rate of 4.45% and a maturity
date of March 2033. The proceeds from the financing were used to
pay off in full the outstanding balance of $19 million on the
Company’s $60 million credit facility.
- As previously announced, in March 2023, the Company entered
into an agreement to acquire a 238-unit multifamily property
constructed in 2019 and located in Richmond, VA, for a purchase
price of approximately $62.5 million. The purchase price includes
the assumption of approximately $32 million of mortgage debt
bearing an interest rate of 3.34% and maturing in 2061. BRT
anticipates that this transaction will be completed by year
end.
- As previously announced, in March 2023, the unconsolidated
joint venture that owns Chatham Court and Reflections, a 494-unit
multi-family property located in Dallas, TX, and in which the
Company has a 50% interest, agreed to sell the property. BRT’s
share of the gain from this sale is estimated to be approximately
$14.6 million and its share of the related early extinguishment of
debt charge to be $167,000. The Company anticipates that this sale
will be completed in the second quarter of 2023 and result in an
IRR of 22% over a seven-year hold with approximately $19 million in
net proceeds available to deploy for new investment
opportunities.
Debt Metrics and LiquidityAt March 31, 2023,
BRT’s available liquidity was approximately $75.3 million,
comprised of $15.3 million of cash and cash equivalents and $60.0
million available under its credit facility.
At May 1, 2023, BRT’s available liquidity was approximately
$73.4 million, including $13.4 million of cash and cash equivalents
and up to $60.0 million available under its credit facility. At May
1, 2023, the interest rate on the facility was 8.00%.
Guidance for Full Year
2023 The Company affirmed its full year 2023
guidance and accompanying assumptions previously issued on March
14, 2023.
Conference Call and Webcast InformationThe
Company will host a conference call and webcast to review its
results and 2023 outlook with investors and other interested
parties at 9:00 a.m. ET on Tuesday, May 9, 2023. To participate in
the conference call, callers from the United States and Canada
should dial 1-877-300-8521, and international callers should dial
1-412-317-6026, ten minutes prior to the scheduled call time. The
webcast may also be accessed live by visiting the Company’s
investor relations website under the “webcast” tab.
A replay of the conference call will be available after 12:00
p.m. ET on Tuesday, May 9, 2023 through 11:59 p.m. ET on Tuesday,
May 23, 2023. To access the replay, listeners may use
1-844-512-2921 (domestic) or 1-412-317-6671 (international). The
passcode for the replay is 10177093.
Supplemental Financial InformationIn an effort
to enhance its financial disclosures to investors, BRT has posted a
supplemental financial information report which can be accessed on
the Company’s investor relations website under the caption
“Financials – Quarterly Results.” When available, the Company will
post a transcript of its quarterly earnings call to the Quarterly
Results page.
Non-GAAP Financial MeasuresBRT discloses FFO,
AFFO, NOI and Combined Portfolio NOI because it believes that such
metrics are widely recognized and appropriate measure of the
performance of an equity REIT.
BRT computes FFO in accordance with the “White Paper on Funds
from Operations” issued by the National Association of Real Estate
Investment Trusts (“NAREIT”) and NAREIT's related guidance. FFO is
defined in the White Paper as net income (calculated in accordance
with generally accepted accounting principles), excluding
depreciation and amortization related to real estate, gains and
losses from the sale of certain real estate assets, gains and
losses from change in control, impairment write-downs of certain
real estate assets and investments in entities when the impairment
is directly attributable to decreases in the value of depreciable
real estate held by the entity. Adjustments for unconsolidated
partnerships and joint ventures are calculated to reflect funds
from operations on the same basis.
BRT computes AFFO by adjusting FFO for loss on extinguishment of
debt, our straight-line rent accruals, restricted stock and RSU
compensation expense, fair value adjustment of mortgage debt, gain
on insurance recovery, insurance recovery from casualty loss and
deferred mortgage and debt costs (including, in each case as
applicable, from its share of its unconsolidated joint ventures).
Since the NAREIT White Paper does not provide guidelines for
computing AFFO, the computation of AFFO may vary from one REIT to
another.
BRT computes NOI by adjusting net income (loss) to (a) add back
(1) depreciation expense, (2) general and administrative expenses,
(3) interest expense, (4) loss on extinguishment of debt, (5)
equity in earnings (loss) of unconsolidated joint ventures and
equity in earnings from the sale of unconsolidated joint venture,
(6) provision for taxes, (7) the impact of non-controlling
interests, and (b) deduct (1) other income, (2) gain on sale of
real estate and partnership interest, and (3) gain on insurance
recoveries related to casualty loss.
BRT defines “Combined Portfolio” as the consolidated same store
properties, the unconsolidated same store properties presented on a
pro rata share basis, and the other multifamily properties that BRT
currently owns presented at 100% ownership for all periods
presented. The Combined Portfolio includes 29 properties totaling
8,201 units for the first quarter ended March 31, 2023.
The pro rata share reflects BRT’s percentage equity interest in
the applicable subsidiary. BRT uses pro rata share to help provide
a better understanding of the impact of its unconsolidated joint
ventures on its operations. However, the use of pro rata
information has limitations. Among other things, as a result of the
allocation/distribution provisions of the agreements governing the
unconsolidated joint ventures, BRT’s share of the gain/loss with
respect to such venture may be different than (and generally less
than that) implied by its percentage equity interest therein.
Further, the use of pro rata share is not representative of its
operations and accounts as presented in accordance with GAAP.
The accounts and results for remaining properties in which the
partner interest was purchased by BRT had previously been reflected
in our unconsolidated results for the entirety of the periods being
presented. As a result, in order to help ensure the comparability
of our Combined Portfolio NOI for the periods presented, we are
including 100% of the NOI of these properties for the periods prior
to their acquisition of the partners’ interests.
BRT believes that FFO, AFFO, NOI and Combined Portfolio NOI are
useful and standard supplemental measures of the operating
performance for equity REITs and are used frequently by securities
analysts, investors and other interested parties in evaluating
equity REITs, many of which present such metrics when reporting
their operating results. FFO and AFFO are intended to exclude GAAP
historical cost depreciation and amortization of real estate
assets, which assures that the value of real estate assets diminish
predictability over time. In fact, real estate values have
historically risen and fallen with market conditions. As a result,
BRT believes that FFO and AFFO provide a performance measure that
when compared year-over-year, should reflect the impact to
operations from trends in occupancy rates, rental rates, operating
costs, interest costs and other matters without the inclusion of
depreciation and amortization, providing a perspective that may not
be necessarily apparent from net income. BRT also considers FFO,
AFFO and NOI to be useful in evaluating property acquisitions and
dispositions. BRT views Combined Portfolio NOI as an important
measure of operating performance because it allows a comparison of
operating results of properties owned for the entirety of the
current and comparable periods and therefore eliminates variations
caused by acquisitions, dispositions or partner buyouts during the
periods.
FFO, AFFO, NOI and Combined Portfolio NOI do not represent net
income or cash flows from operations as defined by GAAP. FFO, AFFO,
NOI and Combined Portfolio NOI should not be considered to be an
alternative to net income as a reliable measure of BRT’s operating
performance; nor should FFO, AFFO, NOI and Combined Portfolio NOI
be considered an alternative to cash flows from operating,
investing or financing activities (as defined by GAAP) as measures
of liquidity. Further, because there is no industry standard
definition of NOI and practice is divergent across the industry,
the computation of NOI may from one REIT to another.
Forward Looking Information BRT considers some
of the information set forth herein to contain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, or the Securities Act, and Section 21E of the
Securities Exchange Act of 1934, as amended, or the Exchange Act,
with respect to our expectations for future periods.
Forward-looking statements do not discuss historical fact, but
instead include statements related to expectations, projections,
intentions or other items related to the future. Such
forward-looking statements include, without limitation, statements
regarding expected operating performance and results, property
acquisition and disposition activity, joint venture activity,
development and value add activity and other capital expenditures,
and capital raising and financing activity, as well as revenue and
expense growth, occupancy, interest rate and other economic
expectations. Words such as “expects,” “anticipates,” “intends,”
“plans,” “believes,” “seeks,” “estimates,” “forecasts,” “projects,”
“assumes,” “will,” “may,” “could,” “should,” “budget,” “target,”
“outlook,” “opportunity,” “guidance” and variations of such words
and similar expressions are intended to identify such
forward-looking statements. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors, which are
in some cases are beyond our control, which may cause our actual
results, performance or achievements to be materially different
from the results of operations, financial conditions or plans
expressed or implied by such forward-looking statements. In light
of the significant uncertainties inherent in the forward-looking
statements included herein, the inclusion of such information
should not be regarded as a representation by us or any other
person that the results or conditions described in such statements
or our objectives and plans will be achieved, and investors are
cautioned not to place undue reliance on such information.
The following factors, among others, could cause our actual
results, performance or achievements to differ materially from
those expressed or implied in the forward-looking statements:
inability to generate sufficient cash flows due to unfavorable
economic and market conditions (e.g., inflation, volatile interest
rates and the possibility of a recession), changes in supply and/or
demand, competition, uninsured losses, changes in tax and housing
laws or other factors; adverse changes in real estate markets,
including, but not limited to, the extent of future demand for
multifamily units in our significant markets, barriers of entry
into new markets which we may seek to enter in the future,
limitations on our ability to increase or collect rental rates,
competition, our ability to identify and consummate attractive
acquisitions and dispositions on favorable terms, and our ability
to reinvest sale proceeds in a manner that generates favorable
returns; general and local real estate conditions, including any
changes in the value of our real estate; decreasing rental rates or
increasing vacancy rates; challenges in acquiring properties
(including challenges in buying properties directly without the
participation of joint venture partners and the limited number of
multi-family property acquisition opportunities available to us),
which acquisitions may not be completed or may not produce the cash
flows or income expected; the competitive environment in which we
operate, including competition that could adversely affect our
ability to acquire properties and/or limit our ability to lease
apartments or increase or maintain rental rates; exposure to risks
inherent in investments in a single industry and sector; the
concentration of our multi-family properties in the Southeastern
United States and Texas, which makes us more susceptible to adverse
developments in those markets; increases in expenses over which we
have limited control, such as real estate taxes, insurance costs
and utilities, due to inflation and other factors; impairment in
the value of real estate we own; failure of property managers to
properly manage properties; disagreements with, or misconduct by,
joint venture partners; inability to obtain financing at favorable
rates, if at all, or refinance existing debt as it matures, due to,
among other things, the level and volatility of interest or capital
market conditions; extreme weather and natural disasters such as
hurricanes, tornadoes and floods; lack of or insufficient amounts
of insurance to cover, among other things, losses from
catastrophes; risks associated with acquiring value-add
multi-family properties, which involves greater risks than more
conservative approaches; the condition of Fannie Mae or Freddie
Mac, which could adversely impact us; changes in Federal, state and
local governmental laws and regulations, including laws and
regulations relating to taxes and real estate and related
investments; our failure to comply with laws, including those
requiring access to our properties by disabled persons, which could
result in substantial costs; board determinations as to timing and
payment of dividends, if any, and our ability or willingness to pay
future dividends; our ability to satisfy the complex rules required
to maintain our qualification as a REIT for federal income tax
purposes; possible environmental liabilities, including costs,
fines or penalties that may be incurred due to necessary
remediation of contamination of properties presently owned or
previously owned by us or a subsidiary owned by us or acquired by
us; our dependence on information systems and risks associated with
breaches of such systems; disease outbreaks and other public health
events, and measures that are taken by federal, state, and local
governmental authorities in response to such outbreaks and events;
impact of climate change on our properties or operations; risks
associated with the stock ownership restrictions of the Internal
Revenue Code of 1986, as amended (the "Code") for REITs and the
stock ownership limit imposed by our charter; and the other factors
described in the reports we file with the SEC, including those set
forth in our Annual Report on Form 10-K under the captions "Item 1.
Business," "Item 1A. Risk Factors," and "Item 7. Management's
Discussion and Analysis of Financial Condition and Results of
Operations".
BRT undertakes no obligation to update or revise the information
herein, whether as a result of new information, future events or
circumstances, or otherwise.
Additional InformationBRT is a real estate
investment trust that owns, operates and, to a lesser extent, holds
interests in joint ventures that own multi-family properties.
As of March 31, 2023, BRT owns or has interests in 29 multi-family
properties with 8,201 units in 11 states. For additional
information on BRT’s operations, activities and properties, please
visit its website at www.brtapartments.com.
Interested parties are urged to review the Form 10-Q to be filed
with the Securities and Exchange Commission for the quarter ended
March 31, 2023, and the supplemental disclosures regarding the
quarter on the investor relations section of the Company’s website
at: https://brtapartments.com/investor-relations. The Form 10-Q can
also be linked through the “Investor Relations” section of BRT’s
website.
Contact:
BRT APARTMENTS CORP. 60 Cutter Mill
Road Suite 303 Great Neck, New York 11021 Telephone:
(516) 466-3100 Email:
investors@BRTapartments.com www.BRTapartments.com
BRT APARTMENTS CORP. AND
SUBSIDIARIESCONDENSED BALANCE
SHEETS(Dollars in thousands) |
|
March 31, 2023 |
|
December 31, 2022 |
|
(unaudited) |
|
(audited) |
ASSETS |
|
|
|
Real estate properties, net of accumulated depreciation |
$ |
647,476 |
|
$ |
651,603 |
|
Investments in unconsolidated joint ventures |
|
41,163 |
|
|
42,576 |
|
Cash and cash equivalents |
|
15,252 |
|
|
20,281 |
|
Restricted cash |
|
830 |
|
|
872 |
|
Other assets |
|
14,980 |
|
|
16,786 |
|
Total assets |
$ |
719,701 |
|
$ |
732,118 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Mortgages payable, net of deferred costs |
$ |
423,820 |
|
$ |
403,792 |
|
Junior subordinated notes, net of deferred costs |
|
37,128 |
|
|
37,123 |
|
Credit facility, net of deferred costs |
|
— |
|
|
18,502 |
|
Accounts payable and accrued liabilities |
|
15,419 |
|
|
22,631 |
|
Total Liabilities |
|
476,367 |
|
|
482,048 |
|
|
|
|
|
Total BRT Apartments Corp. stockholders’ equity |
|
243,316 |
|
|
250,088 |
|
Non-controlling interests |
|
18 |
|
|
(18 |
) |
Total Equity |
|
243,334 |
|
|
250,070 |
|
Total Liabilities and Equity |
$ |
719,701 |
|
$ |
732,118 |
|
BRT APARTMENTS CORP. AND SUBSIDIARIESCONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)
(Dollars in thousands, except per share data) |
|
|
Three Months EndedMarch 31, |
|
|
2023 |
|
2022 |
Revenues: |
|
|
|
|
Rental and other revenues from real estate properties |
|
$ |
22,939 |
|
|
$ |
11,430 |
|
Other income |
|
|
— |
|
|
|
4 |
|
Total revenues |
|
|
22,939 |
|
|
|
11,434 |
|
|
|
|
|
|
Expenses: |
|
|
|
|
Real estate operating expenses |
|
|
10,434 |
|
|
|
4,753 |
|
Interest expense |
|
|
5,483 |
|
|
|
2,021 |
|
General and administrative |
|
|
4,055 |
|
|
|
3,633 |
|
Depreciation and amortization |
|
|
8,008 |
|
|
|
3,606 |
|
Total expenses |
|
|
27,980 |
|
|
|
14,013 |
|
Total revenue less total expenses |
|
|
(5,041 |
) |
|
|
(2,579 |
) |
Equity in earnings of unconsolidated joint ventures |
|
|
815 |
|
|
|
1,230 |
|
Equity in earnings from sale of unconsolidated joint ventures
properties |
|
|
— |
|
|
|
12,961 |
|
Gain on sale of real estate |
|
|
— |
|
|
|
6 |
|
Gain on insurance recovery |
|
|
240 |
|
|
|
— |
|
(Loss) income from continuing operations |
|
|
(3,986 |
) |
|
|
11,618 |
|
Income tax provision |
|
|
76 |
|
|
|
74 |
|
(Loss) income from continuing operations, net of taxes |
|
|
(4,062 |
) |
|
|
11,544 |
|
Net income attributable to non-controlling interest |
|
|
(36 |
) |
|
|
(36 |
) |
Net (loss) income attributable to common stockholders |
|
$ |
(4,098 |
) |
|
$ |
11,508 |
|
|
|
|
|
|
Per share amounts attributable to common stockholders: |
|
|
|
|
Basic and diluted |
|
$ |
(0.21 |
) |
|
$ |
0.62 |
|
|
|
|
|
|
Funds from operations - Note 1 |
|
$ |
5,282 |
|
|
$ |
6,461 |
|
Funds from operations per common share - diluted - Note 2 |
|
$ |
0.28 |
|
|
$ |
0.35 |
|
|
|
|
|
|
Adjusted funds from operations - Note 1 |
|
$ |
6,874 |
|
|
$ |
7,243 |
|
Adjusted funds from operations per common share - diluted - Note
2 |
|
$ |
0.36 |
|
|
$ |
0.39 |
|
|
|
|
|
|
Weighted average number of shares of common stock outstanding: |
|
|
|
|
Basic |
|
|
18,064,301 |
|
|
|
17,561,802 |
|
Diluted |
|
|
18,064,301 |
|
|
|
17,654,349 |
|
BRT APARTMENTS CORP. AND SUBSIDIARIESFUNDS FROM
OPERATIONS AND ADJUSTED FUNDS FROM
OPERATIONS(Unaudited) (Dollars in
thousands, except per share data) |
|
|
Three Months Ended March 31, |
|
|
2023 |
|
2022 |
Note 1: |
|
|
|
|
Funds from operations is summarized in the following table: |
|
|
|
|
GAAP Net (loss) income attributable to common stockholders |
|
$ |
(4,098 |
) |
|
$ |
11,508 |
|
Add: depreciation of properties |
|
|
8,008 |
|
|
|
3,606 |
|
Add: our share of depreciation in unconsolidated joint venture
properties |
|
|
1,376 |
|
|
|
4,318 |
|
Deduct: our share of equity in earnings from sale of unconsolidated
joint venture properties |
|
|
— |
|
|
|
(12961 |
) |
Deduct: gain on sale of real estate |
|
|
— |
|
|
|
(6 |
) |
Adjustments for non-controlling interests |
|
|
(4 |
) |
|
|
(4 |
) |
NAREIT Funds from operations attributable to common
stockholders |
|
|
5,282 |
|
|
|
6,461 |
|
|
|
|
|
|
Adjustments for: straight-line rent accruals |
|
|
19 |
|
|
|
6 |
|
Add: our share of loss on extinguishment of debt from
unconsolidated joint venture properties |
|
|
— |
|
|
|
19 |
|
Add: amortization of restricted stock and RSU expense |
|
|
1,410 |
|
|
|
974 |
|
Add: amortization of deferred mortgage and debt costs |
|
|
252 |
|
|
|
77 |
|
Add: our share of deferred mortgage costs from unconsolidated joint
venture properties |
|
|
27 |
|
|
|
93 |
|
Add: amortization of fair value adjustment for mortgage debt |
|
|
157 |
|
|
|
— |
|
Less: gain on insurance proceeds |
|
|
(240 |
) |
|
|
— |
|
Less: our share of gain on insurance proceeds from unconsolidated
joint venture properties |
|
|
(30 |
) |
|
|
(386 |
) |
Adjustments for non-controlling interests |
|
|
(3 |
) |
|
|
(1 |
) |
Adjusted funds from operations attributable to common
stockholders |
|
$ |
6,874 |
|
|
$ |
7,243 |
|
BRT APARTMENTS CORP. AND SUBSIDIARIESFUNDS FROM
OPERATIONS AND ADJUSTED FUNDS FROM
OPERATIONS(Unaudited) (Dollars in
thousands, except per share data) |
|
|
Three Months Ended March 31, |
|
|
2023 |
|
2022 |
Note 2: |
|
|
|
|
Net (loss) income attributable to common stockholders |
|
$ |
(0.21 |
) |
|
$ |
0.62 |
|
Add: depreciation of properties |
|
|
0.42 |
|
|
|
0.20 |
|
Add: our share of depreciation in unconsolidated joint venture
properties |
|
|
0.07 |
|
|
|
0.23 |
|
Deduct: our share of equity in earnings from sale of unconsolidated
joint venture properties |
|
|
— |
|
|
|
(0.70 |
) |
Deduct: gain on sale of real estate |
|
|
— |
|
|
|
— |
|
Adjustment for non-controlling interests |
|
|
— |
|
|
|
— |
|
NAREIT Funds from operations per diluted common
share |
|
|
0.28 |
|
|
|
0.35 |
|
|
|
|
|
|
Adjustments for: straight line rent accruals |
|
|
— |
|
|
|
— |
|
Add: our share of loss on extinguishment of debt from
unconsolidated joint venture properties |
|
|
— |
|
|
|
— |
|
Add: amortization of restricted stock and RSU expense |
|
|
0.07 |
|
|
|
0.05 |
|
Add: amortization of deferred mortgage and debt costs |
|
|
0.01 |
|
|
|
— |
|
Add: our share of deferred mortgage and debt costs from
unconsolidated joint venture properties |
|
|
— |
|
|
|
0.01 |
|
Add: amortization of fair value adjustment for mortgage debt |
|
|
0.01 |
|
|
|
— |
|
Less: gain on insurance proceeds |
|
|
(0.01 |
) |
|
|
— |
|
Less: our share of gain on insurance proceeds from unconsolidated
joint venture |
|
|
— |
|
|
|
(0.02 |
) |
Adjustments for non-controlling interests |
|
|
— |
|
|
|
— |
|
Adjusted funds from operations per diluted common
share |
|
$ |
0.36 |
|
|
$ |
0.39 |
|
|
|
|
|
|
Diluted shares outstanding for FFO and AFFO |
|
|
19,137,577 |
|
|
|
18,570,639 |
|
BRT APARTMENTS CORP. AND
SUBSIDIARIESRECONCILIATION OF NOI TO NET
INCOME(Unaudited)
The following tables provides a reconciliation of
NOI to net income attributable to common stockholders as computed
in accordance with GAAP for the periods presented:
Consolidated |
|
Three Months Ended March 31, |
|
|
2023 |
|
2022 |
GAAP Net (loss) income attributable to common stockholders |
|
$ |
(4,098 |
) |
|
$ |
11,508 |
|
Less: Other Income |
|
|
— |
|
|
|
(4 |
) |
Add: Interest expense |
|
|
5,483 |
|
|
|
2,021 |
|
General and administrative |
|
|
4,055 |
|
|
|
3,633 |
|
Impairment charge |
|
|
— |
|
|
|
— |
|
Depreciation and amortization |
|
|
8,008 |
|
|
|
3,606 |
|
Provision for taxes |
|
|
76 |
|
|
|
74 |
|
Less: Gain on sale of real estate |
|
|
— |
|
|
|
(6 |
) |
Equity in earnings from sale of unconsolidated joint venture
properties |
|
|
— |
|
|
|
(12,961 |
) |
Gain on insurance recoveries |
|
|
(240 |
) |
|
|
— |
|
Adjust for: Equity in (earnings) of unconsolidated joint venture
properties |
|
|
(815 |
) |
|
|
(1,230 |
) |
Add: Net income attributable to non-controlling interests |
|
|
36 |
|
|
|
36 |
|
Net Operating Income |
|
$ |
12,505 |
|
|
$ |
6,677 |
|
|
|
|
|
|
Less: Non-same store Net Operating Income |
|
|
6,127 |
|
|
|
320 |
|
Same store Net Operating Income |
|
$ |
6,378 |
|
|
$ |
6,357 |
|
BRT APARTMENTS CORP. AND
SUBSIDIARIESRECONCILIATION OF NOI AT
UNCONSOLIDATED SUBSIDIARIES(Unaudited)
(Dollars in thousands, except per share data)
The following tables provides a reconciliation of
NOI to equity in loss of unconsolidated joint ventures as computed
in accordance with GAAP for the periods presented for BRT's pro
rata share of NOI at its unconsolidated subsidiaries. Also
presented is the combined same store NOI for Consolidated and
Unconsolidated subsidiaries:
Unconsolidated |
|
Three Months Ended March 31, |
|
|
2023 |
|
2022 |
BRT's equity in earnings from sale of unconsolidated joint venture
properties and equity in loss of joint ventures |
|
$ |
815 |
|
|
$ |
14,191 |
|
Add: Interest expense |
|
|
1,252 |
|
|
|
3,944 |
|
Depreciation |
|
|
1,377 |
|
|
|
4,318 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
19 |
|
Less: Gain on insurances recoveries |
|
|
(30 |
) |
|
|
(386 |
) |
Gain on sale of real estate |
|
|
— |
|
|
|
(12,961 |
) |
Equity in earnings of joint ventures |
|
|
(113 |
) |
|
|
(55 |
) |
Net Operating Income |
|
$ |
3,301 |
|
|
$ |
9,070 |
|
|
|
|
|
|
Less: Non-same store Net Operating Income |
|
$ |
— |
|
|
$ |
5,900 |
|
Same store Net Operating Income |
|
$ |
3,301 |
|
|
$ |
3,170 |
|
|
|
|
|
|
Consolidated same store Net Operating Income |
|
$ |
6,378 |
|
|
$ |
6,357 |
|
Unconsolidated same store Net Operating
Income |
|
$ |
3,301 |
|
|
$ |
3,170 |
|
Buyout same store Net Operating Income |
|
$ |
5,859 |
|
|
$ |
5,854 |
|
Combined same store Net Operating Income |
|
|
15,538 |
|
|
|
15,381 |
|
BRT APARTMENTS CORP. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited) (Dollars in
thousands, except per share data)
The condensed income statements below present, for
the periods indicated, a reconciliation of the information that
appears in note 8 of BRT's Quarterly report on Form 10-Q to BRT's
pro rata share of the operations of its unconsolidated
subsidiaries:
|
|
Three Months Ended March 31, 2023 |
|
|
|
Total |
|
Partner Share |
|
BRT's Pro-Rata Share |
|
Revenues: |
|
|
|
|
|
|
|
Rental and other revenue |
|
$ |
12,132 |
|
$ |
5,889 |
|
$ |
6,243 |
|
Total revenues |
|
$ |
12,132 |
|
$ |
5,889 |
|
$ |
6,243 |
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Real estate operating expenses |
|
|
5,675 |
|
|
2,733 |
|
|
2,942 |
|
Interest expense |
|
|
2,455 |
|
|
1,203 |
|
|
1,252 |
|
Depreciation |
|
|
2,707 |
|
|
1,330 |
|
|
1,377 |
|
Total expenses |
|
|
10,837 |
|
|
5,266 |
|
|
5,571 |
|
Total revenues less total expenses |
|
|
1,295 |
|
|
623 |
|
|
672 |
|
|
|
|
|
|
|
|
|
Equity in earnings of joint ventures |
|
|
113 |
|
|
— |
|
|
113 |
|
Gain on insurance recoveries |
|
|
65 |
|
|
35 |
|
|
30 |
|
Net loss (income) |
|
$ |
1,473 |
|
$ |
658 |
|
$ |
815 |
(1 |
) |
________________
(1) Reflects BRT's share as determined in
accordance with GAAP - not its pro-rata share.
|
|
Three Months Ended March 31, 2022 |
|
|
|
Total |
|
Partner Share |
|
BRT's Pro-Rata Share |
|
Revenues: |
|
|
|
|
|
|
|
Rental and other revenue |
|
$ |
25,231 |
|
|
$ |
8,896 |
|
|
$ |
16,335 |
|
|
Total revenues |
|
$ |
25,231 |
|
|
$ |
8,896 |
|
|
$ |
16,335 |
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Real estate operating expenses |
|
|
11,169 |
|
|
|
3,904 |
|
|
|
7,265 |
|
|
Interest expense |
|
|
6,026 |
|
|
|
2,082 |
|
|
|
3,944 |
|
|
Depreciation |
|
|
6,636 |
|
|
|
2,318 |
|
|
|
4,318 |
|
|
Total expenses |
|
|
23,831 |
|
|
|
8,304 |
|
|
|
15,527 |
|
|
Total revenues less total expenses |
|
|
1,400 |
|
|
|
592 |
|
|
|
808 |
|
|
|
|
|
|
|
|
|
|
Equity in earnings of joint ventures |
|
|
55 |
|
|
|
— |
|
|
|
55 |
|
|
Gain on insurance recoveries |
|
|
515 |
|
|
|
129 |
|
|
|
386 |
|
|
Gain on sale of real estate |
|
|
23,652 |
|
|
|
10,691 |
|
|
|
12,961 |
|
|
Loss on extinguishment of debt |
|
|
(30 |
) |
|
|
(11 |
) |
|
|
(19 |
) |
|
Net loss |
|
$ |
25,592 |
|
|
$ |
11,401 |
|
|
$ |
14,191 |
|
(1 |
) |
________________
(1) Reflects BRT's share as determined in
accordance with GAAP - not its pro-rata share.
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