false000001484600000148462023-08-072023-08-07

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT


Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 7, 2023

BRT APARTMENTS CORP.
(Exact name of Registrant as specified in charter)
Maryland001-0717213-2755856
(State or other jurisdiction of incorporation)(Commission file No.)(IRS Employer I.D. No.)


60 Cutter Mill Road, Suite 303, Great Neck, New York 11021
(Address of principal executive offices) (Zip code)

Registrant's telephone number, including area code: 516-466-3100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockBRTNYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.






Item 2.02. Results of Operations and Financial Condition.

On August 7, 2023, we issued a press release announcing our results of operations for the three months ended June 30, 2023. The press release refers to certain supplemental financial information available on our website. The press release and the supplemental financial information are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K. The information in this Item 2.02, including the information included in Exhibits 99.1 and 99.2, shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended, which we refer to as the Exchange Act, and shall not be incorporated by reference into any registration statement or other document filed under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.


Item 9.01        Financial Statements and Exhibits.

(d) Exhibits.


Exhibit No.Description
Press release dated August 7, 2023
Supplemental Financial Information dated August 7, 2023
101Cover Page Interactive Data File - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document







SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BRT APARTMENTS CORP.
August 7, 2023/s/ George Zweier
George Zweier, Vice President
and Chief Financial Officer




brtlogo080719.jpg


BRT APARTMENTS CORP. REPORTS SECOND QUARTER 2023 RESULTS

– Affirms Full Year 2023 Guidance –

Great Neck, New York – August 7, 2023 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 second quarter ended June 30, 2023.

Highlights
Reported results for the second quarter of 2023 of net income of $11.2 million, or $0.58 per diluted share, Funds from Operations, or FFO, of $0.28 per diluted share and Adjusted Funds from Operations, or AFFO, of $0.37 per diluted share.
Equity (loss) in earnings of unconsolidated joint ventures was $464,000 in the second quarter of 2023 and $(50,000) for the corresponding 2022 quarter.
Combined Portfolio NOI increased 1.4% for the second quarter when compared with the prior-year period.
Completed the previously announced disposition of a joint venture asset in Dallas, TX for a gain of $14.7 million, net proceeds of $19.4 million and an IRR of 22% over a seven-year hold.
Repurchased 309,153 shares and 45,612 shares during the second quarter and after the quarter, respectively, at a weighted average price of $19.03. The Company currently has $3.25 million remaining under its current share repurchase authorization.
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 fundamentals within our portfolio are strong with combined portfolio revenue up 5.9%, average monthly rental revenue up 7.3% and average occupancy holding steady at 94.3%. While we did not see the acceleration in Combined portfolio NOI to the level that we had anticipated, all but two properties are performing at or above our expectations for the year. With our operational improvement plans well underway with these two assets, we are confident the underlying strength of the portfolio will be evident in the second half of the year. The earlier-than-anticipated sale of Chatham Court and Reflections during the quarter generated $19.4 million of net proceeds that allowed us to pay down property-specific debt and use some of the proceeds for share repurchases. The successful disposition also improved our liquidity to $91.3 million at quarter end. With no debt maturities until 2025, we are well-positioned to deploy our capital in a disciplined and opportunistic manner.”

Second Quarter Financial and Operating Results
Net income attributable to common stockholders for the quarter ended June 30, 2023 was $11.2 million, or $0.58 per diluted share, compared to net income attributable to common stockholders of $35.6 million, or $1.91 per diluted share, for the corresponding 2022 quarter. The current-year period included BRT’s $14.7 million (or $0.78 per diluted share) gain from the sale of a property owned by an unconsolidated subsidiary, and the prior-year period included BRT’s $40.1 million (or $2.26 per diluted share) share of a gain from the sale of two properties owned by unconsolidated subsidiaries.
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FFO was $5.3 million, or $0.28 per diluted share, in the current quarter, compared to $3.8 million, or $0.20 per diluted share, in the corresponding 2022 quarter, primarily due to a reduction in early extinguishment of debt and a decline in the income tax provision.
AFFO was $7.2 million, or $0.37 per diluted share, in the current quarter, compared to AFFO of $6.9 million, or $0.37 per diluted share, in the corresponding 2022 quarter, primarily due to the decrease in the income tax provision and the increase in insurance recovery offset by the increase in interest expense.
Equity (loss) in earnings of unconsolidated joint ventures for the current quarter was $464,000 compared to $(50,000) in the corresponding quarter of the prior year.
Combined Portfolio NOI in the current quarter increased by 1.4% to $15.4 million; the Company estimates that two properties (Verandas at Alamo Ranch in San Antonio, TX and Bell’s Bluff in Nashville, TN) accounted for headwinds totaling approximately 320 basis points in the second quarter Combined Portfolio NOI results.
Diluted per share net income, FFO and AFFO during the quarter ended June 30, 2023 reflect the approximate 487,000 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, offset by the 309,153 shares of common stock repurchased during the current quarter.
For leases signed during the second quarter in the Combined Portfolio, the Company experienced a 5.4% increase on renewal leases, a 4.3% increase on new leases and a 5.0% increase on a blended basis. The rent-to-income ratio for all new leases signed in the second quarter is 24%. For leases signed during the month of July 2023, the Company experienced a 5.3% increase on renewals, a 3.2% increase on new leases and a 4.3% increase on a blended basis.

Transaction and Financing Activity
On May 12, 2023, the unconsolidated joint venture that owns Chatham Court and Reflections in Dallas, TX in which the Company had a 50% interest, completed the previously announced sale of the asset. The sale generated net proceeds to BRT of approximately $19.4 million and an IRR of 22% over a seven-year hold. BRT’s share of the gain from this sale was $14.7 million, and its share of the related early extinguishment of debt charge was $212,000. BRT’s net proceeds of $19.4 million give effect to the repayment of its pro rata share of $12.7 million in debt secured by the property.

Debt Metrics and Liquidity
At June 30, 2023, BRT’s available liquidity was approximately $91.3 million, comprised of $31.3 million of cash and cash equivalents and $60.0 million available under its credit facility.

At August 1, 2023, BRT’s available liquidity was approximately $86.7 million, including $26.7 million of cash and cash equivalents and up to $60.0 million available under its credit facility. At August 1, 2023, the interest rate on the facility was 8.50%.

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 Information
The 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, August 8, 2023. To participate in the conference call, callers from the United States and Canada should dial 1-888-349-0092, and international callers should dial 1-412-902-4235, 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, August 8, 2023 through 11:59 p.m. ET on Tuesday, August 22, 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 10180735.

Supplemental Financial Information
In 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.


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Non-GAAP Financial Measures
BRT 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.
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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.


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Additional Information
BRT 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 June 30, 2023, BRT owns or has interests in 28 multi-family properties with 7,707 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 June 30, 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
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BRT APARTMENTS CORP. AND SUBSIDIARIES
CONDENSED BALANCE SHEETS
(Dollars in thousands)


June 30, 2023December 31, 2022
(unaudited)(audited)
ASSETS
Real estate properties, net of accumulated depreciation $643,869 $651,603 
Investments in unconsolidated joint ventures35,530 42,576 
Cash and cash equivalents31,336 20,281 
Restricted cash830 872 
Other assets16,241 16,786 
Total assets$727,806 $732,118 
LIABILITIES AND EQUITY
Mortgages payable, net of deferred costs $423,383 $403,792 
Junior subordinated notes, net of deferred costs 37,133 37,123 
Credit facility, net of deferred costs— 18,502 
Accounts payable and accrued liabilities21,544 22,631 
Total Liabilities482,060 482,048 
Total BRT Apartments Corp. stockholders’ equity245,729 250,088 
Non-controlling interests17 (18)
Total Equity245,746 250,070 
Total Liabilities and Equity$727,806 $732,118 

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BRT APARTMENTS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share data)

Three Months Ended
June 30,
20232022
Revenues:
Rental and other revenues from real estate properties$23,255 $14,683 
Other income63 
Total revenues23,318 14,685 
Expenses:
Real estate operating expenses 10,548 6,348 
Interest expense5,513 2,912 
General and administrative 3,848 3,533 
Depreciation and amortization7,543 5,010 
Total expenses27,452 17,803 
Total revenue less total expenses(4,134)(3,118)
Equity in earnings (loss) of unconsolidated joint ventures464 (50)
Equity in earnings from sale of unconsolidated joint ventures properties14,744 40,098 
Gain on sale of real estate— — 
Insurance recovery of casualty loss215 — 
   Gain on insurance recovery— — 
    Loss on extinguishment of debt— (563)
Income from continuing operations11,289 36,367 
Income tax provision51 724 
Income from continuing operations, net of taxes11,238 35,643 
Net income attributable to non-controlling interest(36)(36)
Net income attributable to common stockholders$11,202 $35,607 
Per share amounts attributable to common stockholders:
Basic $0.59 $1.91 
Diluted $0.58 $1.91 
Funds from operations - Note 1$5,299 $3,774 
Funds from operations per common share - diluted - Note 2$0.28 $0.20 
Adjusted funds from operations - Note 1$7,181 $6,945 
Adjusted funds from operations per common share - diluted -Note 2$0.37 $0.37 
Weighted average number of shares of common stock outstanding:
Basic 18,155,062 17,671,073 
Diluted18,220,814 17,726,343 

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The tables below provides a reconciliation of net loss determined in accordance with GAAP to FFO and AFFO on a dollar and per share basis for each of the indicated periods (dollars in thousands, except per share amounts):

Three Months Ended June 30,
20232022
Note 1:
Funds from operations is summarized in the following table:
GAAP Net income attributable to common stockholders$11,202 $35,607 
Add: depreciation and amortization of properties7,543 5,010 
Add: our share of depreciation in unconsolidated joint venture properties1,302 3,259 
Deduct: our share of equity in earnings from sale of unconsolidated joint
             venture properties
(14,744)(40,098)
Deduct: gain on sale of real estate— — 
Adjustments for non-controlling interests(4)(4)
NAREIT Funds from operations attributable to common stockholders5,299 3,774 
Adjustments for: straight-line rent accruals25 
Add: loss on extinguishment of debt— 563 
Add: our share of loss on extinguishment of debt from unconsolidated joint
         venture properties
212 1,473 
Add: amortization of restricted stock and RSU expense1,193 1,001 
Add: amortization of deferred mortgage and debt costs275 102 
Add: our share of deferred mortgage costs from unconsolidated joint
         venture properties
27 73 
Add: amortization of fair value adjustment for mortgage debt154 — 
Less: gain on insurance proceeds— — 
Less: our share of gain on insurance proceeds from unconsolidated joint
         venture properties
— (46)
Adjustments for non-controlling interests(4)(1)
Adjusted funds from operations attributable to common stockholders$7,181 $6,945 





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Three Months Ended June 30,
20232022
Note 2:
Net income attributable to common stockholders$0.58 $1.91 
Add: depreciation and amortization of properties0.40 0.26 
Add: our share of depreciation in unconsolidated joint venture properties0.07 0.17 
Deduct: our share of equity in earnings from sale of unconsolidated joint
              venture properties
(0.77)(2.14)
Deduct: gain on sale of real estate— — 
Adjustment for non-controlling interests— — 
NAREIT Funds from operations per diluted common share0.28 0.20 
Adjustments for: straight line rent accruals— — 
Add: loss on extinguishment of debt— 0.03 
Add: our share of loss on extinguishment of debt from unconsolidated joint
         venture properties
0.01 0.08 
Add: amortization of restricted stock and RSU expense0.06 0.05 
Add: amortization of deferred mortgage and debt costs0.01 0.01 
Add: our share of deferred mortgage and debt costs from unconsolidated
         joint venture properties
— — 
Add: amortization of fair value adjustment for mortgage debt0.01 — 
Less: gain on insurance proceeds— — 
Less: our share of gain on insurance proceeds from unconsolidated joint
         venture properties
— — 
Adjustments for non-controlling interests— — 
Adjusted funds from operations per diluted common share$0.37 $0.37 
Diluted shares outstanding for FFO and AFFO 19,174,000 18,661,000 

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BRT APARTMENTS CORP. AND SUBSIDIARIES
RECONCILIATION 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:

Three Months Ended June 30,
Consolidated20232022
GAAP Net income attributable to common stockholders$11,202 $35,607 
Less: Other Income(63)(2)
Add: Interest expense5,513 2,912 
General and administrative3,848 3,533 
Impairment charge— — 
Depreciation and amortization7,543 5,010 
Provision for taxes51 724 
Less: Gain on sale of real estate— — 
   Equity in earnings from sale of unconsolidated joint venture
   properties
(14,744)(40,098)
Insurance recovery(215)— 
Gain on insurance recoveries— — 
Add: Loss on extinguishment of debt— 563 
Adjust for: Equity in (earnings) loss of unconsolidated joint venture
                  properties
(464)50 
Add: Net income attributable to non-controlling interests36 36 
Net Operating Income$12,707 $8,335 
Less: Non-same store Net Operating Income6,058 1,310 
Same store Net Operating Income$6,649 $7,025 


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BRT APARTMENTS CORP. AND SUBSIDIARIES
RECONCILIATION 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:


Three Months Ended June 30,
Unconsolidated 20232022
BRT's equity in earnings from sale of unconsolidated joint venture properties and equity in loss of joint ventures$15,208 $40,048 
Add: Interest expense1,221 3,106 
Depreciation1,301 3,259 
          Loss on extinguishment of debt212 1,469 
Less: Gain on insurances recoveries— (42)
Gain on sale of real estate(14,744)(40,098)
Equity in earnings of joint ventures— (22)
Net Operating Income$3,198 $7,720 
Less: Non-same store Net Operating Income$247 $4,932 
Same store Net Operating Income$2,951 $2,788 
Consolidated same store Net Operating Income$6,649 $7,025 
Unconsolidated same store Net Operating Income2,951 2,788 
Buyout same store Net Operating Income5,803 5,384 
Combined same store Net Operating Income$15,403 $15,197 

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BRT APARTMENTS CORP. AND SUBSIDIARIES
CONDENSED 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 June 30, 2023
TotalBRT's Pro-Rata SharePartner Share
Revenues:
Rental and other revenue$11,476 $5,905 $5,571 
Total revenues$11,476 $5,905 $5,571 
Expenses:
Real estate operating expenses5,137 2,707 2,430 
Interest expense2,390 1,221 1,169 
Depreciation2,558 1,301 1,257 
Total expenses10,085 5,229 4,856 
Total revenues less total expenses1,391 676 715 
Gain on sale of real estate 38,418 14,744 23,674 
Loss on extinguishment of debt(561)(212)(349)
Net loss (income)$39,248 $15,208 $24,040 
________________
(1) Reflects BRT's share as determined in accordance with GAAP - not its pro-rata share.
Three Months Ended June 30, 2022
TotalBRT's Pro-Rata SharePartner Share
Revenues:
Rental and other revenue$22,107 $13,951 $8,156 
Total revenues$22,107 $13,951 $8,156 
Expenses:
Real estate operating expenses9,842 6,231 3,611 
Interest expense4,893 3,106 1,787 
Depreciation5,208 3,259 1,949 
Total expenses19,943 12,596 7,347 
Total revenues less total expenses2,164 1,355 809 
Equity in earnings of joint ventures22 22 — 
Gain on insurance recoveries52 42 10 
Gain on sale of real estate 77,681 40,098 37,583 
Loss on extinguishment of debt(2,888)(1,469)(1,419)
Net loss$77,031 $40,048 $36,983 
________________
(1) Reflects BRT's share as determined in accordance with GAAP - not its pro-rata share.
12

Exhibit 99.2
brtlogoa.jpg
SUPPLEMENTAL FINANCIAL
INFORMATION FOR THREE AND SIX MONTHS ENDED
JUNE 30, 2023


August 7, 2023

60 Cutter Mill Rd., Great Neck, NY 11021










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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
We consider 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, 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. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such forward-looking statements included in this report may not prove to be accurate. 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".





We undertake no obligation to update or revise the information herein, whether as a result of new information, future events or circumstances, or otherwise.

Units under rehabilitation for which we have received or accrued rental income from business interruption insurance, while not physically occupied, are treated as leased (i.e., occupied) at rental rates in effect at the time of the casualty.
We use pro rata (as defined under "Non-GAAP Financial Measures and Definitions") to help the reader gain a better understanding of our unconsolidated joint ventures. However, the use of pro rata information has certain limitations and is not representative of our operations and accounts as presented in accordance with GAAP. Accordingly, pro rata information should be used with caution and in conjunction with the GAAP data presented herein and in our reports filed with the SEC.





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Table of ContentsPage Number
Financial Highlights
2023 Guidance
Components of Net Asset Value
Operating Results
Operating Results of Unconsolidated Properties
Funds From Operations and Adjusted Funds From Operations
Consolidated Balance Sheets
Contracted Acquisition and Disposition
9
Value-Add Program and Capital Expenditures
Debt Analysis
Portfolio Data by State
Combined Portfolio Metrics
Portfolio Table
Appendix
Non-GAAP Financial Measure and Definitions
Consolidated Same Store Comparison
Unconsolidated Same Store Comparison
Buyout NOI by State
Reconciliations
Balance Sheets of Unconsolidated Joint Venture Entities
    


BRT Apartments Corp. (NYSE: BRT)
Financial Highlights
_________________________________________________________________________________________________________
As at June 30,
20232022
Market capitalization (thousands)$373,646 $401,949 
Shares outstanding (thousands)18,871 18,704 
Closing share price$19.80 $21.49 
Quarterly dividend declared per share$0.25 $0.25 
Quarter ended June 30,
CombinedConsolidatedUnconsolidated
202320222023202220232022
Properties owned (a)28302116714
Units (a)7,7078,4055,4203,8482,2874,557
Average occupancy (a)94.3 %96.1 %94.5 %96.7 %94.0 %95.6 %
Average monthly rental revenue per occupied unit $1,344 $1,252$1,338$1,316$1,357$1,216
____________________________
(a) Excludes a planned 240-unit development project
Quarter ended June 30,
Per share data2023
(Unaudited)
2022
(Unaudited)
Earnings per share, basic$0.59 $1.91 
Earnings per share, diluted$0.58 $1.91 
FFO per share of common stock (diluted) (1)$0.28 $0.20 
AFFO per share of common stock (diluted) (1)$0.37 $0.37 
As at June 30,
20232022
Debt to Enterprise Value (2)63 %63 %
(1) See the reconciliation of Funds From Operations, or FFO, and Adjusted Funds From Operations, or AFFO, to net income, as calculated in accordance with
GAAP, and the definitions of such terms under "Non-GAAP Financial Measures and Definitions."
(2) Enterprise Value is equal to debt plus market capitalization less cash and cash equivalents, including BRT's pro-rata share of cash and cash equivalents at the
unconsolidated Joint Ventures. Cash and cash equivalents excludes restricted cash. Debt is equal to 100% of the debt at the consolidated properties and BRT's
pro-rata share of debt at the unconsolidated joint ventures. See "Non-GAAP Financial Measures and Definitions" for an explanation of "pro-rata share."

1

BRT Apartments Corp. (NYSE: BRT)
2023 Guidance
_____________________________________________________________________________________________________________________


2023 Combined Portfolio Guidance Assumptions (1)
Low EndMidpointHigh End
Property revenue growth5.2%5.7%6.2%
Controllable operating expense growth7.0%5.6%4.2%
Real estate tax and insurance expense growth (2)
18.3%17.7%17.1%
Total operating expense growth10.3%9.2%8.2%
Property NOI growth1.4%3.1%4.7%
Capital Expenditures
Recurring$5.7 Million$5.5 Million$5.2 Million
Value add$3.6 Million$3.5 Million$3.3 Million
Non- recurring$1.8 Million$1.7 Million$1.6 Million
2023 Full Year EPS, FFO and AFFO Guidance Per Share (3) (5) (6)
Earnings per share (diluted)$0.09$0.15$0.20
FFO per share of common stock (diluted) (4)
$1.08$1.14$1.19
AFFO per share of common stock (diluted) (4)
$1.50$1.56$1.61
_____________________________________________

(1) Combined Portfolio includes 28 properties and 7,707 units.
(2) Real estate taxes and insurance are increasing 9.8% and 50.4% at the midpoint, respectively. The insurance increase is primarily due to the implementation of a master insurance program effective Q4 2022, which replaced policies at 17 properties which were scheduled to expire throughout 2023. We believe that future increases in insurance expense will be more in line with the market.
(3) Per Share guidance is based on 19.23 million weighted average shares outstanding, which includes for the year 164,000 shares of Restricted Stock and 148,000 shares issued pursuant to the Dividend Reinvestment Program (DRIP).
(4) See the reconciliation of Funds From Operations, or FFO, Adjusted Funds From Operations, or 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."
(5) This guidance, including all assumptions presented, constitutes forward-looking information. Actual full year 2023 EPS, FFO, AFFO and NOI could vary significantly from the projections presented.
(6) The shares repurchased by the Company during the quarter ended June 30, 2023, due to the timing of such repurchases and the use of a weighted average number of shares, did not significantly impact FFO and AFFO on a per share basis. The Company estimates that the repurchase of an aggregate of 354,765 shares from April 1, 2023 through July 31, 2023, will favorably impact FFO and AFFO by approximately $.02 per share during the six months ending December 31, 2023, and share repurchases in the future, if any, may further favorably impact FFO and AFFO on a per share basis.
2

BRT Apartments Corp. (NYSE: BRT)
Components of Net Asset Value
As of June 30, 2023
(dollars in thousands)
____________________________________________________________________________________________________________________

Net Operating Income for the three months ended June 30, 2023
Consolidated$12,707 
Unconsolidated (Pro rata)3,198 
Total Net Operating Income$15,905 
OTHER ASSETS
Cash and Cash Equivalents$31,336 
Cash and Cash Equivalents - Unconsolidated pro rata3,778 
Restricted Cash830 
Other Assets16,241 
Other Assets - Unconsolidated pro rata9,453 
Total Cash and Other Assets$61,638 
OTHER LIABILITIES
Accounts Payable and Accrued Liabilities$21,544 
Accounts Payable and Accrued Liabilities - Unconsolidated pro rata3,458 
Total Other Liabilities$25,002 
DEBT SUMMARY
Mortgages Payable:
Consolidated$423,383 
Unconsolidated (Pro rata)114,237 
Total Mortgages Payable$537,620 
Credit Facility— 
Subordinated Notes37,133 
Total Debt Outstanding$574,753 
Common Shares Outstanding18,871 


;
3

BRT Apartments Corp. (NYSE: BRT)
Operating Results
(dollars in thousands except per share data)

_____________________________________________________________________________________________________________________

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Revenues:
Rental and other revenue from real estate properties $23,255 $14,683 $46,194 $26,113 
Other income63 63 
Total revenues23,318 14,685 46,257 26,119 
Expenses:
Real estate operating expenses 10,548 6,348 20,982 11,101 
Interest expense5,513 2,912 10,996 4,933 
General and administrative3,848 3,533 7,903 7,166 
Depreciation and amortization7,543 5,010 15,551 8,616 
Total expenses27,452 17,803 55,432 31,816 
Total revenues less total expenses(4,134)(3,118)(9,175)(5,697)
Equity in earnings of unconsolidated joint ventures464 (50)1,279 1,180 
Equity in earnings from sale of unconsolidated joint venture properties14,744 40,098 14,744 53,059 
Gain on sale of real estate— — — 
Insurance recovery215 — 215 — 
Gain on insurance recoveries— — 240 — 
Loss on extinguishment of debt— (563)— (563)
Income from continuing operations11,289 36,367 7,303 47,985 
 Income tax provision51 724 127 798 
Income from continuing operations, net of taxes11,238 35,643 7,176 47,187 
Net income attributable to non-controlling interests(36)(36)(72)(72)
Net income attributable to common stockholders$11,202 $35,607 $7,104 $47,115 
Weighted average number of shares of common stock outstanding:
Basic18,155,062 17,671,073 18,110,508 17,616,740 
Diluted18,220,814 17,726,343 18,157,804 17,690,601 
Per share amounts attributable to common stockholders:
Basic$0.59 $1.91 $0.37 $2.54 
Diluted$0.58 $1.91 $0.37 $2.53 


4

BRT Apartments Corp. (NYSE: BRT)
Operating Results of Unconsolidated Properties
(dollars in thousands, except per share data)

_____________________________________________________________________________________________________________________

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Revenues:
Rental and other revenue$11,476 $22,107 $23,608 $47,338 
Total revenues11,476 22,107 23,608 47,338 
Expenses:
Real estate operating expenses5,137 9,842 10,812 21,011 
Interest expense2,390 4,893 4,845 10,919 
Depreciation2,558 5,208 5,265 11,844 
Total expenses10,085 19,943 20,922 43,774 
Total revenues less total expenses1,391 2,164 2,686 3,564 
Other equity earnings— 22 113 77 
Gain on insurance recoveries— 52 65 567 
Gain on sale of real estate 38,418 77,681 38,418 101,333 
Loss on extinguishment of debt(561)(2,888)(561)(2,918)
Net income from joint ventures$39,248 $77,031 $40,721 $102,623 
BRT equity in earnings and equity in earnings from sale of unconsolidated joint venture properties$15,208 $40,048 $16,023 $54,239 
5

BRT Apartments Corp. (NYSE: BRT)
Funds from Operations and
Adjusted Funds from Operations
(dollars in thousands)
____________________________________________________________________________________________________________________

The tables below provides a reconciliation of net loss determined in accordance with GAAP to FFO and AFFO on a dollar and per share basis for each of the indicated periods (dollars in thousands, except per share amounts):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
GAAP Net income attributable to common stockholders$11,202 $35,607 $7,104 $47,115 
Add: depreciation and amortization of properties7,543 5,010 15,551 8,616 
Add: our share of depreciation in unconsolidated joint venture properties1,302 3,259 2,678 7,577 
Deduct: our share of equity in earnings from sale of unconsolidated joint
             venture properties
(14,744)(40,098)(14,744)(53,059)
Deduct: gain on sale of real estate— — — (6)
Adjustments for non-controlling interests(4)(4)(8)(8)
NAREIT Funds from operations attributable to common stockholders$5,299 $3,774 $10,581 $10,235 
Adjustments for: straight-line rent accruals25 44 12 
Add: loss on extinguishment of debt— 563 — 563 
Add: our share of loss on extinguishment of debt from unconsolidated joint
         venture properties
212 1,473 212 1,492 
Add: amortization of restricted stock and RSU expense1,193 1,001 2,603 1,975 
Add: amortization of deferred mortgage and debt costs275 102 527 179 
Add: our share of deferred mortgage costs from unconsolidated joint
         venture properties
27 73 54 166 
Add: amortization of fair value adjustment for mortgage debt154 — 311 — 
Less: gain on insurance proceeds— — (240)— 
Less: our share of gain on insurance proceeds from unconsolidated joint
         venture properties
— (46)(30)(432)
Adjustments for non-controlling interests(4)(1)(7)(2)
Adjusted funds from operations attributable to common stockholders$7,181 $6,945 $14,055 $14,188 

6


Funds from Operations and
Adjusted Funds from Operations
(dollars in thousands, except per share data)
____________________________________________________________________________________________________________________



Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
GAAP Net income attributable to common stockholders$0.58 $1.91 $0.36 $2.53 
Add: depreciation and amortization of properties0.40 0.26 0.82 0.46 
Add: our share of depreciation in unconsolidated joint venture properties0.07 0.17 0.14 0.41 
Deduct: our share of equity in earnings from sale of unconsolidated joint venture properties(0.77)(2.14)(0.77)(2.85)
Deduct: gain on sale of real estate— — — — 
Adjustment for non-controlling interests— — — — 
NAREIT Funds from operations per diluted common share$0.28 $0.20 $0.55 $0.55 
Adjust for straight line rent accruals— — — — 
Add: loss on extinguishment of debt— 0.03 — 0.03 
Add: our share of loss on extinguishment of debt from unconsolidated joint venture properties0.01 0.08 0.01 0.08 
Add: amortization of restricted stock and RSU expense0.06 0.05 0.13 0.10 
Add: amortization of deferred mortgage and debt costs0.01 0.01 0.03 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 debt0.01 — 0.02 — 
     Less: gain on insurance proceeds— — (0.01)— 
Less: our share of gain on insurance proceeds from unconsolidated joint venture properties— — — (0.02)
Adjustments for non-controlling interests— — — — 
Adjusted funds from operations per diluted common share$0.37 $0.37 $0.73 $0.76 
Diluted shares outstanding for FFO and AFFO19,174,000 18,661,000 19,171,000 18,616,000 
7

BRT Apartments Corp. (NYSE: BRT)
Consolidated Balance Sheets
(amounts in thousands, except per share amounts)

_____________________________________________________________________________________________________________________

June 30, 2023December 31, 2022
(unaudited)(audited)
ASSETS
Real estate properties, net of accumulated depreciation and amortization$643,869 $651,603 
Investment in unconsolidated joint ventures35,530 42,576 
Cash and cash equivalents31,336 20,281 
Restricted cash830 872 
Other assets16,241 16,786 
Total Assets $727,806 $732,118 
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs$423,383 $403,792 
Junior subordinated notes, net of deferred costs37,133 37,123 
Credit facility, net of deferred costs— 18,502 
Accounts payable and accrued liabilities21,544 22,631 
Total Liabilities 482,060 482,048 
Commitments and contingencies
Equity:
BRT Apartments Corp. stockholders' equity:
Preferred shares $.01 par value 2,000 shares authorized, none issued— — 
Common stock, $.01 par value, 300,000 shares authorized; 17,917 and 18,006 shares outstanding
179 180 
Additional paid-in capital272,064 273,863 
Accumulated deficit(26,514)(23,955)
Total BRT Apartments Corp. stockholders’ equity245,729 250,088 
Non-controlling interests17 (18)
Total Equity245,746 250,070 
Total Liabilities and Equity$727,806 $732,118 

8

BRT Apartments Corp. (NYSE: BRT)
Contracted Acquisition and Disposition
(dollars in thousands)

________________________________________________________________________________________

CONTRACTED PURCHASE OF PROPERTY (1)
Property/LocationNo. of UnitsInterestPurchase PriceMortgage Debt AssumptionInterest Rate
The Winterfield at Midlothian, Richmond, VA238100%$62,500 $32,000 3.34 %
(1) It is anticipated that this purchase will be completed by year end 2023.



SALE OF PROPERTY OWNED BY UNCONSOLIDATED JOINT VENTURE
Property/LocationNo. of UnitsInterest OwnedSales Price BRT's share of Prepayment ChargeBRT's Share of Gain on Sale
Chatham Court Reflections, Dallas, TX49450%$73,000 $212 $14,744 





9

BRT Apartments Corp. (NYSE: BRT)
Value-Add Program and Capital Expenditures
Quarter ended June 30, 2023
________________________________________________________________________________________


Value-Add Program
(Includes consolidated and unconsolidated amounts)
Units Rehabilitated (1)Estimated Rehab Costs (2)Estimated Rehab Costs Per unitEstimated Average Monthly Rent Increase (3)Estimated Annualized ROI (3)Estimated units available to be renovated over next 24 months
65$477,000 $7,338 $276 45%700
(1) Refers to rehabilitated units with respect to which a new lease or renewal lease was entered into during the period.
(2) Reflects rehab costs incurred during the current and prior periods with respect to units completed, in which a new lease or renewal lease was entered into
       during the current period.
(3) These results are not necessarily indicative of the results that would be generated if such improvements were made across our portfolio of properties or at any
       particular property. Rents at a property may increase for reasons wholly unrelated to property improvements, such as changes in demand for rental units in a
       particular market or sub-market. Even if units are available to be renovated, the Company may decide not to renovate such units.




Capital Expenditures
(Includes consolidated and unconsolidated amounts)
Gross Capital ExpendituresLess: JV Partner ShareBRT Share of Capital Expenditures (4)
Estimated Recurring Capital Expenditures (1)$1,705,000 $235,000 $1,470,000 
Estimated Non-Recurring Capital Expenditures (2)1,467,000 17,000 1,450,000 
Total Capital Expenditures$3,172,000 $252,000 $2,920,000 
Replacements (operating expense) (3)$793,000 $74,000 $719,000 
Estimated Recurring Capital Expenditures and
Replacements per unit (7,707 units)
$324 $40 $284 
(1) Recurring capital expenditures represent our estimate of expenditures incurred at the property to maintain the property's existing operations - it excludes
       revenue enhancing projects.
(2) Non-recurring capital expenditures represent our estimate of significant improvements to the common areas, property exteriors, or interior units of the
      property, and revenue enhancing upgrades.
(3) Replacements are expensed and not capitalized as incurred at the property.
(4) Based on BRT's percentage equity interest.

10

BRT Apartments Corp. (NYSE: BRT)
Debt Analysis
As of June 30, 2023
(dollars in thousands)
____________________________________________________________________________________________________________________________________
Consolidated
Year
Total Principal PaymentsScheduled AmortizationPrincipal Payments Due at Maturity Percent of Total Principal Payments Due At MaturityWeighted Average Interest Rate (1)
2023$1,387 $1,387 $— — %— %
20243,331 3,331 — — %— %
202519,860 4,485 15,375 %4.42 %
202674,620 5,089 69,531 18 %4.12 %
202746,189 3,394 42,795 11 %3.96 %
Thereafter 282,435 24,776 257,659 67 %4.00 %
Total$427,822 $42,462 $385,360 100 %
Unconsolidated (BRT pro rata share)
YearTotal Principal PaymentsScheduled AmortizationPrincipal Payments Due at MaturityPercent of Total Principal Payments Due At MaturityWeighted Average Interest Rate (1)
2023$803 $803 — — %— %
20241,759 1,759 $— — %— %
20251,842 1,842 — — %— %
202621,911 1,806 20,105 19 %4.34 %
202713,026 1,472 11,554 11 %4.15 %
Thereafter75,495 1,813 73,682 70 %3.81 %
Total$114,836 $9,495 $105,341 100 %
Combined (2)
YearTotal Principal PaymentsScheduled AmortizationPrincipal Payments Due at MaturityPercent of Total Principal Payments Due At MaturityWeighted Average Interest Rate (1)
2023$2,190 $2,190 $— — — %
20245,090 5,090 — — — %
202521,702 6,327 15,375 %4.42 %
202696,531 6,895 89,636 18 %4.17 %
202759,215 4,866 54,349 11 %4.00 %
Thereafter357,930 26,589 331,341 68 %3.96 %
Total$542,658 $51,957 $490,701 100 %
Weighted Average Remaining Term to Maturity (2)7.1 years
Weighted Average Interest Rate (2)4.01 %
Debt Service Coverage Ratio for the quarter ended June 30, 2023 1.69 (3)
(1) Based on principal payments due at maturity.
(2) Includes consolidated and BRT's pro rata share of unconsolidated amounts.
(3) See definition under "Non-GAAP Financial Measures and Definitions." Includes consolidated and 100% of the unconsolidated amounts.
Junior Subordinated Notes
Principal Balance $37,400, excluding deferred costs of $262
Interest Rate3 month term SOFR + 2.26% credit adjustment (i.e, 7.30% at 6/30/2023)
MaturityApril 30, 2036
Credit Facility (as of June 30, 2023)
Maximum Amount AvailableUp to $60,000
Amount Outstanding $0
Interest Rate (1)Prime (floor of 3.50%)
MaturitySeptember 2025
(1) As of August 1, 2023, the interest rate in effect is 8.50%



11

BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Quarter ended June 30, 2023
(dollars in thousands, except monthly rent amounts)

_____________________________________________________________________________________________________________________
Consolidated
 Units at period endRevenues Property Operating Expenses NOI (1)% of NOI ContributionWeighted Average Occupancy Weighted Average Rent per Occ. Unit
Texas600$2,286 $1,378 $908 7.1 %90.8 %$1,213 
Georgia6882,653 1,334 1,319 10.4 %93.9 %1,215
Florida5182,356 1,138 1,218 9.6 %94.7 %1,448
Ohio264922 407 515 4.1 %97.1 %1,083
Virginia2201,131 451 680 5.4 %97.0 %1,586
North Carolina2641,063 410 653 5.1 %95.1 %1,243
South Carolina4742,137 1,155 982 7.7 %94.9 %1,404
Tennessee7023,497 1,444 2,053 16.2 %94.7 %1,611
Alabama7402,850 1,231 1,619 12.7 %93.6 %1,208
Missouri174966 435 531 4.2 %95.8 %1,727
Mississippi7763,024 1,050 1,974 15.4 %95.7 %1,259
Legacy assets370 115 255 2.0 %N/AN/A
Totals5,420$23,255 $10,548 $12,707 100 %94.5 %$1,338 
Unconsolidated (Pro-Rata Share) (2)
Units at period endRevenuesProperty Operating ExpensesNOI (1)% of NOI ContributionWeighted Average Occupancy
 
Weighted Average Rent per Occ. Unit
 
Texas1,103$2,628 $1,236 $1,392 43.5 %92.9 %$1,322 
South Carolina7131,289 448 841 26.3 %94.5 %1,480 
Georgia271947 494 453 14.2 %96.5 %1,470 
Alabama200550 284 266 8.3 %98.0 %1,050 
Sold properties491 245 246 7.7 %N/AN/A
Totals2,287$5,905 $2,707 $3,198 100 %94.0 %$1,357 

_________________________________________________________________________________
(1) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI and pro-rata share under "Non-GAAP Financial
Measures and Definitions."
(2) Reflects the income and expenses for the properties for the portion of the period prior to the close of the applicable partner buyout. The income and expenses
for the period subsequent to the buyouts are included in the Consolidated information in the table above.









12

BRT Apartments Corp. (NYSE: BRT)
Portfolio Data by State
Six months ended June 30, 2023
(dollars in thousands, except monthly rent amounts)

____________________________________________________________________________________________________________________
Consolidated
 Units at period endRevenues Property Operating Expenses NOI (1)% of NOI ContributionWeighted Average Occupancy Weighted Average Rent per Occ. Unit
Texas600$4,550 $2,714 $1,836 7.3%90.5 %$1,218 
Georgia6885,231 2,553 2,678 10.6%93.7 %1,203
Florida5184,726 2,182 2,544 10.1%95.0 %1,452
Ohio2641,866 859 1,007 4.0%97.3 %1,090
Virginia2202,293 884 1,409 5.6%96.7 %1,613
North Carolina2642,063 816 1,247 4.9%94.7 %1,228
South Carolina4744,273 2,252 2,021 8.0%95.1 %1,393
Tennessee7026,954 2,956 3,998 15.9%94.1 %1,611
Alabama7405,599 2,509 3,090 12.3%94.4 %1,176
Missouri1741,877 862 1,015 4.0%94.7 %1,694
Mississippi7766,020 2,175 3,845 15.3%96.3 %1,245
Legacy assets742 220 522 2.1%N/AN/A
Totals5,420$46,194 $20,982 $25,212 100.0%94.5 %$1,329 
Unconsolidated (Pro-Rata Share)(1)
Units at period endRevenuesProperty Operating ExpensesNOI (1)% of NOI ContributionAverage Occupancy Average Rent per Occ. Unit
Texas1,103$5,176 $2,509 $2,667 41.0%92.7%$1,315
South Carolina7132,535 913 1,622 25.0%93.9%1,471
Georgia2711,884 925 959 14.8%96.4%1,473
Alabama2001,105 556 549 8.4%98.4%1,046
Sold properties1,448 746 702 10.8%N/AN/A
Totals2,287$12,148 $5,649 $6,499 100%93.8%$1,350
_________________________________________________________________________________
(1) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI and pro-rata share under "Non-GAAP Financial
Measures and Definitions."
(2) Reflects the income and expenses for the properties for the portion of the period prior to the close of the applicable partner buyout. The income and expenses
for the period subsequent to the buyouts are included in the Consolidated information in the table above.

13

BRT Apartments Corp. (NYSE: BRT)
Combined Portfolio Metrics (1)
Quarters ended June 30, 2023 and 2022
(dollars in thousands)
_____________________________________________________________________________________________________________________


Three Months Ended June 30,
20232022% Change
Combined Revenues$28,292 $26,727 5.9 %
Combined Operating Expenses
Payroll$2,525 $2,292 10.2 %
Real Estate taxes3,364 3,141 7.1 %
Management Fees817 851 (4.0)%
Insurance1,086 747 45.4 %
Utilities1,606 1,443 11.3 %
Repairs and Maintenance1,716 1,505 14.0 %
Replacements706 581 21.6 %
Advertising, Leasing and Other1,074 974 10.3 %
Total Combined Operating Expenses$12,894 $11,534 11.8 %
Total Combined Operating Income$15,398 $15,193 1.4 %
_______________________________

(1) Please refer to Non-GAAP Financial Measures, Definitions and Reconciliations for definition of Combined Same Store and reconciliation of Net Operating
Income. Combined portfolio refers to the consolidated same store properties, the unconsolidated same store properties presented on a pro rata share basis, and
the other multifamily properties that BRT bought out and presented at 100% ownership for all periods presented, with a total number of 7,707 units.


14

BRT Apartments Corp. (NYSE: BRT)
Combined Portfolio Metrics (1)
Six months ended June 30, 2023 and 2022
(dollars in thousands)
____________________________________________________________________________________________________________________


Six Months Ended June 30,
20232022% Change
Combined Revenues$58,183 $54,625 6.5 %
Combined Operating Expenses
Payroll$5,034 $4,586 9.8 %
Real Estate taxes6,918 6,364 8.7 %
Management Fees1,681 1,743 (3.6)%
Insurance2,487 1,525 63.1 %
Utilities3,455 3,030 14.0 %
Repairs and Maintenance3,569 3,021 18.1 %
Replacements1,309 1,071 22.2 %
Advertising, Leasing and Other2,142 2,043 4.8 %
Total Combined Operating Expenses$26,597 $23,383 13.7 %
Total Combined Operating Income$31,586 $31,242 1.1 %

_______________________________

(1) Please refer to Non-GAAP Financial Measures, Definitions and Reconciliations for definition of Combined Same Store and reconciliation of Net Operating
Income. Combined portfolio refers to the consolidated same store properties, the unconsolidated same store properties presented on a pro rata share basis, and
the other multifamily properties that BRT bought out and presented at 100% ownership for all periods presented, with a total number of 7,707 units.

15

BRT Apartments Corp. (NYSE: BRT)
Portfolio Table
As of June 30, 2023
___________________________________________________________________________________________

PropertyCityStateYear BuiltYear AcquiredProperty AgeUnitsQ2 2023 Avg. OccupancyQ2 2023 Avg. Rent per Occ. Unit
Consolidated Properties - All 100% Owned
Silvana OaksNorth CharlestonSC201020121220895.0%$1,488 
Avondale StationDecaturGA195420126821291.7%1,409 
Newbridge CommonsColumbusOH199920132326497.1%1,083 
AvalonPensacolaFL200820141427695.1%1,520 
Parkway GrandeSan MarcosTX20142015819296.7%1,289 
Woodland TrailsLaGrangeGA201020151223695.9%1,341 
Kilburn CrossingFredericksburgVA200520161722097.0%1,586 
Bell's BluffNashvilleTN20192018340294.9%1,712 
Crossings of BellevueNashvilleTN198520143730094.4%1,476 
Crestmont at ThornbladeGreenvilleSC199820182426694.8%1,338 
Verandas at Alamo RanchSan AntonioTX20152016728884.3%1,152 
Vanguard HeightsCreve CoeurMO20162017617495.8%1,727 
Jackson SquareTallahasseeFL199620172624294.4%1,367 
Brixworth at BridgestreetHuntsvilleAL198520133720892.3%1,109 
Woodland ApartmentsBoerneTX200720171512097.2%1,218 
Grove at River PlaceMaconGA198820163424094.0%923 
Civic Center 1SouthavenMS200220162039296.8%1,224 
Civic Center 2SouthavenMS200520161738494.6%1,295 
Abbotts RunWilmingtonNC200120202126495.1%1,243 
Somerset at TrussvilleTrussvilleAL200720191532895.7%1,240 
Magnolia PointeMadisonAL199120173120491.5%1,257 
Weighted Avg./Total Consolidated215,420
Properties owned by Unconsolidated Joint Ventures% Ownership
Pointe at Lenox ParkAtlantaGA198920163327196.5%1,470 74 %
Gateway OaksForneyTX20162016631392.6%1,393 50 %
Mercer CrossingDallasTX20152017750993.2%1,695 50 %
Canalside LoftsColumbiaSC200820171437494.0%1,389 32 %
Landings of Carrier ParkwayGrand PrairieTX200120182228189.7%1,354 50 %
Canalside SolaColumbiaSC20152018733995.0%1,580 46 %
The Village at LakesideAuburnAL198820193420098.0%1,050 80 %
Weighted Avg./Total Unconsolidated152,287
Development
Stono Oaks (1)Johns IslandSC
Weighted Avg./Total Portfolio197,707
___________________________
(1) Purchased a 17.45% interest in a planned 240-unit development property.
16

BRT Apartments Corp. (NYSE: BRT)




















APPENDIX
17

BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)
________________________________________________________________________________________

Adjusted Funds from Operations (AFFO)
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(as described below) does not provide guidelines for computing AFFO, the computation of AFFO may vary from one REIT to another.

Combined Portfolio
Combined portfolio refers to 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.

Debt Service Coverage Ratio
Debt service coverage ratio is net operating income ("NOI") divided by total debt service and includes both consolidated and unconsolidated assets.

Funds from Operations (FFO)
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. In computing FFO we do not add back to net income the amortization of costs in connection with our financing activities or depreciation of non-real estate assets.

Net Operating Income (NOI)
BRT computes NOI by adjusting net income (loss) to (a) add back (1) interest expense, (2) general and administrative expenses, (3) depreciation expense, (4) impairment charges, (5) provision for taxes, (6) loss on extinguishment of debt, (7) equity in loss of unconsolidated joint ventures, (8) casualty loss and (9) the impact of non-controlling interests, and (b) deduct (1) other income, (2) gain on sale of real estate (3) gain on sale of partnership interest, (4) equity in earnings from sale of consolidated joint venture properties, (5) insurance recovery of casualty loss and (6) gain on insurance recoveries.

Pro-Rata Share
BRT's pro-rata share gives effect to its percentage equity interest in the unconsolidated joint ventures that own properties. Due to the operation of allocation/distribution provision of the joint venture agreements pursuant to which BRT participates in the ownership of these properties, BRT's share of the gain and loss on the sale of a property may be less than implied by BRT's percentage equity interest. Notwithstanding the foregoing, when referring to the number of units, average occupancy, and average rent per unit, the amount shown reflects 100% of the amount.

Same Store
Same store properties refer to stabilized properties (as described below) that we owned and operated for the entirety of periods being compared, except for properties that are under construction, in lease-up, or are undergoing development or redevelopment. We move properties previously excluded from our same store portfolio (because they were under construction, in lease up or are in development or redevelopment) into the same store designation once they have stabilized and such status has been reflected fully in all applicable periods of comparison.

Stabilized Properties
Newly constructed, lease-up, development and redevelopment properties are deemed stabilized upon the earlier to occur of the first full calendar quarter beginning (a) 12 months after the property is fully completed and put in service and (b) attainment of at least 90% physical occupancy. 

Total Debt Service
Total debt service is the cash required to cover the repayment of interest and principal on a debt for a particular period. Total debt service is used in the calculation of the debt service coverage ratio which is used to determine the borrower’s ability to make debt service payments.
18

BRT Apartments Corp. (NYSE: BRT)
Consolidated Same Store Comparisons (1)
Quarters ended June 30, 2023 and 2022
(dollars in thousands, except monthly rent amounts)
_____________________________________________________________________________________________________________________
RevenuesProperty Operating ExpensesNOI (2)
Units20232022% Change20232022% Change20232022% Change
Georgia448$1,943 $1,814 7.1 %$923 $779 18.5 %$1,020 $1,035 (1.4)%
Florida2761,337 1,232 8.5 %605 527 14.8 %732 705 3.8 %
Texas4801,833 1,942 (5.6)%1,166 951 22.6 %667 991 (32.7)%
Ohio264922 870 6.0 %407 370 10.0 %515 500 3.0 %
Virginia2201,131 1,204 (6.1)%451 430 4.9 %680 774 (12.1)%
South Carolina4742,137 2,011 6.3 %1,155 998 15.7 %982 1,013 (3.1)%
Tennessee7023,497 3,450 1.4 %1,444 1,443 0.1 %2,053 2,007 2.3 %
Totals2,864$12,800 $12,523 2.2 %$6,151 $5,498 11.9 %$6,649 $7,025 (5.4)%
0
Weighted Average OccupancyWeighted Average Monthly Rent per Occupied Unit
20232022% Change20232022% Change
Georgia93.9 %97.6 %(3.8)%$1,372 $1,232 11.4 %
Florida95.1 %97.2 %(2.2)%1,5201,35512.2 %
Texas89.2 %94.7 %(5.8)%1,2111,2040.6 %
Ohio97.1 %96.7 %0.4 %1,0831,0127.0 %
Virginia97.0 %98.0 %(1.0)%1,5861,648(3.8)%
South Carolina94.9 %97.5 %(2.7)%1,4041,27310.3 %
Tennessee94.7 %97.2 %(2.6)%1,611 1,547 4.1 %
Weighted Average94.1 %96.9 %(2.9)%$1,415 $1,336 5.9 %
_______________________________

(1) See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
(2) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI under "Non-GAAP Financial Measures and
Definitions."



























19

BRT Apartments Corp. (NYSE: BRT)

Consolidated Same Store Comparisons (1)
Six months ended June 30, 2023 and 2022
(dollars in thousands, except monthly rent amounts)
____________________________________________________________________________________________________________________
RevenuesProperty Operating ExpensesNOI (2)
Units20232022% Change20232022% Change20232022% Change
Georgia448$3,818 $3,579 6.7 %$1,823 $1,592 14.5 %$1,995 $1,987 0.4 %
Florida2762,717 2,432 11.7 %1,177 997 18.1 %1,540 1,435 7.3 %
Texas1921,621 1,498 8.2 %821 713 15.1 %800 785 1.9 %
Ohio2641,866 1,739 7.3 %859 708 21.3 %1,007 1,031 (2.3)%
Virginia2202,293 2,277 0.7 %884 782 13.0 %1,409 1,495 (5.8)%
South Carolina2084,273 3,999 6.9 %2,252 1,938 16.2 %2,021 2,061 (1.9)%
Tennessee702$6,954 6,758 2.9 %2,956 2,762 7.0 %3,998 3,996 0.1 %
Totals1,608$23,542 $22,282 5.7 %$10,772 $9,492 $913.5 %$12,770 $12,790 (0.2)%
Weighted Average OccupancyWeighted Average Monthly Rent per Occupied Unit
20232022% Change20232022% Change
Georgia93.2 %97.8 %(4.7)%$1,357 $1,210 12.1 %
Florida95.2 %96.4 %(1.2)%1,541 1,360 13.3 %
Texas95.3 %97.8 %(2.6)%1,303 1,144 13.9 %
Ohio97.3 %97.0 %0.3 %1,090 1,010 7.9 %
Virginia96.7 %98.5 %(1.8)%1,613 1,566 3.0 %
South Carolina95.1 %97.6 %(2.6)%1,393 1,261 10.5 %
Tennessee93.8 %97.7 %(4.0)%$1,610 $1,515 6.3 %
Weighted Average94.8 %97.6 %(2.9)%$1,442 $1,324 8.9 %
_______________________________
(1) See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
(2) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI under "Non-GAAP Financial Measures and
Definitions."

20

BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons (1)
Quarters ended June 30, 2023 and 2022
BRT Pro-rata Share
(dollars in thousands, except monthly rent amounts)
________________________________________________________________________________________
RevenuesProperty Operating ExpensesNOI (2)
Units20232022% Change20232022% Change20232022% Change
Texas1,103$2,628 $2,461 6.8 %$1,236 $916 34.9 %$1,392 $1,545 (9.9)%
Georgia271947 869 9.0 %494 603 (18.1)%453 266 70.3 %
South Carolina 7131,289 1,205 7.0 %449 435 3.2 %840 770 9.1 %
Alabama 200550 508 8.3 %284 301 (5.6)%266 207 28.5 %
Totals2,287$5,414 $5,043 7.4 %$2,463 $2,255 9.2 %$2,951 $2,788 5.8 %
Weighted Average OccupancyWeighted Average Monthly Rent per Occupied Unit
20232022% Change20232022% Change
Texas92.1 %95.5 %(3.6)%$1,524 $1,386 10.0 %
Georgia96.5 %94.1 %2.6 %1,470 1,377 6.8 %
South Carolina94.5 %96.4 %(2.0)%1,480 1,366 8.3 %
Alabama98.0 %97.5 %0.5 %1,050 965 8.8 %
Weighted Average93.9 %95.8 %(2.0)%$1,461 $1,341 8.9 %
________________________________
(1) See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
(2) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI and pro-rata share under "Non-GAAP Financial
Measures and Definitions."





21

BRT Apartments Corp. (NYSE: BRT)
Unconsolidated Same Store Comparisons (1)
Six months ended June 30, 2023 and 2022
BRT Pro-rata Share
(dollars in thousands, except monthly rent amounts)
_______________________________________________________________________________________
RevenuesProperty Operating ExpensesNOI (2)
Units20232022% Change20232022% Change20232022% Change
Texas1,103$5,176 $4,863 6.4 %$2,509 $2,331 7.6 %$2,667 $2,532 5.3 %
Georgia2711,884 1,710 10.2 %925 735 25.9 %959 975 (1.6)%
South Carolina 7132,535 2,377 6.6 %914 853 7.2 %1,621 1,524 6.4 %
Alabama 2001,105 997 10.8 %556 498 11.6 %549 499 10.0 %
Totals2,287$10,700 $9,947 7.6 %$4,904 $4,417 11.0 %$5,796 $5,530 4.8 %
Weighted Average OccupancyWeighted Average Monthly Rent per Occupied Unit
20232022% Change20232022% Change
Texas91.9 %95.7 %(4.0)%$1,515 $1,363 11.2 %
Georgia96.4 %94.1 %2.4 %1,473 1,363 8.1 %
South Carolina93.9 %96.8 %(3.0)%1,471 1,348 9.1 %
Alabama98.4 %97.7 %0.7 %1,046 957 9.3 %
Weighted Average93.6 %96.0 %(2.5)%$1,453 $1,322 9.9 %
___________________________________
(1) See definition of Same Store under "Non-GAAP Financial Measures and Definitions"
(2) See the reconciliation of NOI to net income, as calculated in accordance with GAAP, and the definition of NOI and pro-rata share under "Non-GAAP Financial
Measures and Definitions."


22

BRT Apartments Corp. (NYSE: BRT)
Buyout NOI by State (1)
Quarters ended June 30, 2023 and 2022
Assuming 100% Ownership
(dollars in thousands)
________________________________________________________________________________________


Three Months Ended June 30,
20232022
RevenuesExpensesNOIRevenuesExpensesNOI
Alabama$2,850$1,233$1,618$2,593$1,114$1,478
Florida1,019533486939464475
Georgia710411299657364293
Mississippi3,0241,0491,9742,7389431,795
Missouri966435531879357522
North Carolina1,063410653941367574
Texas453212241423175247
Totals$10,085$4,282$5,803$9,169$3,784$5,384
________________________________

(1) Represents eleven properties in which we purchased our partner's remaining interest in 2022. This table represents information as if these
properties were wholly owned by the Company for all periods presented.




23


Buyout NOI by State (1)
Six months ended June 30, 2023 and 2022
Assuming 100% Ownership
(dollars in thousands)
_______________________________________________________________________________________


Six Months Ended June 30,
20232022
RevenuesExpensesNOIRevenuesExpensesNOI
Alabama$5,599$2,510$3,089$5,160$2,205$2,955
Florida2,0081,0041,0041,840919921
Georgia1,4137306831,301687614
Mississippi6,0192,1743,8465,4511,8803,571
Missouri1,8788631,0151,7397311,008
North Carolina2,0638161,2471,8507301,120
Texas2,9291,8921,0363,2091,5681,641
Totals$21,909$9,990$11,919$20,551$8,720$11,830

____________________________________________________
(1) Represents eleven properties in which we purchased our partner's remaining interest in 2022. This table represents information as if these
properties were wholly owned by the Company for all periods presented.



24

BRT Apartments Corp. (NYSE: BRT)

2023 Guidance Reconciliation
_____________________________________________________________________________________________________________________


Guidance Reconciliation:Low EndMid PointHigh End
Net income per share attributable to common stockholders$0.09$0.15$0.20
Add: depreciation of properties1.441.441.44
Add: our share of depreciation in unconsolidated joint ventures0.290.290.29
Deduct: gain on sale of real estate(0.74)(0.74)(0.74)
Adjustment for non controlling interests
FFO per share of common stock (diluted)$1.08$1.14$1.19
Adjustment for: straight-line rent accruals
Add: amortization of restricted stock and RSU expense0.310.310.31
Add: amortization of deferred mortgage and debt costs0.060.060.06
Add: our share of amortization of deferred mortgage and debt costs from
         unconsolidated ventures
0.010.010.01
Add: loss on extinguishment of debt0.010.010.01
Add: amortization of fair value adjustment for mortgage debt0.030.030.03
Adjustments for non- controlling interests
AFFO per common share (diluted)$1.50$1.56$1.61

25

BRT Apartments Corp. (NYSE: BRT)

NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
Assuming 100% Ownership
(dollars in thousands)
________________________________________________________________________________________

Three Months Ended June 30,Six Months Ended June 30,
Buyout2023202220232022
Net income$11,202 $35,607 $7,104 $47,115 
Less: Equity in earnings from JV(15,208)(40,048)(16,023)(54,239)
Add: Net income from unconsolidated JV39,248 77,031 40,721 102,623 
Less: Other income(63)(2)(63)(6)
Add: Interest expense5,513 2,912 10,996 4,933 
General and administrative3,848 3,533 7,903 7,166 
Impairment charge— — — — 
Depreciation and amortization7,543 5,010 15,551 8,616 
Provision for taxes51 724 127 798 
Loss on Extinguishment of debt— 563 — 563 
Unconsolidated Interest expense2,390 4,893 4,845 10,919 
Unconsolidated Depreciation2,558 5,208 5,265 11,844 
Unconsolidated Loss on extinguishment of debt561 2,888 561 2,918 
Less: Gain on sale of real estate— — — (6)
Insurance recovery(215)— (215)— 
Gain on insurance recoveries— — (240)— 
Unconsolidated Insurance Recovery— — — — 
Unconsolidated Gain on Insurance Recoveries— (52)(65)(567)
Unconsolidated Gain on Sale(38,418)(77,681)(38,418)(101,333)
Unconsolidated Other equity earnings— (22)(113)(77)
Add: Net loss attributable to non-controlling interests36 36 72 72 
Net Operating Income19,046 20,600 38,008 41,339 
Less: Non-buyout net operating income13,243 15,216 26,089 29,509 
Buyout Net Operating Income$5,803$5,384 $11,919 $11,830

26

BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)
________________________________________________________________________________________

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 for the consolidated properties:


ConsolidatedThree Months Ended June 30,Six Months Ended June 30,
2023202220232022
GAAP Net income attributable to common stockholders$11,202 $35,607 $7,104 $47,115 
Less: Other Income(63)(2)(63)(6)
Add: Interest expense5,513 2,912 10,996 4,933 
General and administrative3,848 3,533 7,903 7,166 
Depreciation and amortization7,543 5,010 15,551 8,616 
Provision for taxes51 724 127 798 
Less: Gain on sale of real estate— — — (6)
   Equity in earnings from sale of unconsolidated joint venture
   properties
(14,744)(40,098)(14,744)(53,059)
Insurance recovery(215)— (215)— 
Gain on insurance recoveries— — (240)— 
Add: Loss on extinguishment of debt— 563 — 563 
Adjust for: Equity in (earnings) loss of unconsolidated joint venture
                  properties
(464)50 (1,279)(1,180)
Add: Net income attributable to non-controlling interests36 36 72 72 
Net Operating Income$12,707 $8,335 $25,212 $15,012 
Less: Non-same store Net Operating Income6,058 1,310 $12,442 $2,222 
Same store Net Operating Income$6,649 $7,025 $12,770 $12,790 
27

BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)
________________________________________________________________________________________

The following tables provides a reconciliation of BRT's Equity in earnings from NOI to net income attributable to common stockholders as computed in accordance with GAAP for the periods presented for BRT's pro rata share of the unconsolidated properties:


Unconsolidated Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
BRT equity in earnings from joint ventures$15,208 $40,048 $16,023 $54,239 
Add: Interest expense1,221 3,106 2,473 7,050 
         Depreciation1,301 3,259 2,678 7,577 
         Loss on extinguishment of debt212 1,469 212 1,488 
Less: Gain on insurances recoveries— (42)(30)(428)
          Gain on sale of real estate(14,744)(40,098)(14,744)(53,059)
          Equity in earnings of joint ventures— (22)(113)(77)
Net Operating Income$3,198 $7,720 $6,499 $16,790 
Less: Non-same store Net Operating Income$247 $4,932 702 11,260 
Same store Net Operating Income$2,951 $2,788 $5,797 $5,530 
Consolidated same store Net Operating Income$6,649 $7,025 12,770 12,790 
Unconsolidated same store Net Operating Income2,951 2,788 5,797 5,530 
Buyout same store Net Operating Income5,803 5,384 11,919 11,830 
Combined same store Net Operating Income$15,403 $15,197 $30,486 $30,150 


28

BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)

_____________________________________________________________________________________________________________________

The condensed income statements for the unconsolidated properties below, present, for the periods indicated, a reconciliation of the information that appears in note 7 to the consolidated financial statements included in BRT's Quarterly Report on Form 10-Q for the period ended June 30, 2023 to the BRT pro-rata information presented below:


Three Months Ended June 30, 2023
TotalBRT's Pro Rata SharePartner Share
Revenues:
Rental and other revenue$11,476 $5,905 $5,571 
Total revenues11,476 5,905 5,571 
Expenses:
Real estate operating expenses5,137 2,707 2,430 
Interest expense2,390 1,221 1,169 
Depreciation2,558 1,301 1,257 
Total expenses10,085 5,229 $4,856 
Total revenues less total expenses1,391 676 715 
Gain on sale of real estate properties38,418 14,744 23,674 
Loss on extinguishment of debt(561)(212)(349)
Net income$39,248 $15,208 $24,040 

Three Months Ended June 30, 2022
TotalBRT's Pro Rata SharePartner Share
Revenues:
Rental and other revenue$22,107 $13,951 $8,156 
Total revenues22,107 13,951 8,156 
Expenses:
Real estate operating expenses9,842 6,231 3,611 
Interest expense4,893 3,106 1,787 
Depreciation5,208 3,259 1,949 
Total expenses19,943 12,596 $7,347 
Total revenues less total expenses2,164 1,355 809 
Other equity earnings22 22 — 
Gain on insurance recoveries52 42 10 
Gain on sale of real estate properties77,681 40,098 37,583 
Loss on extinguishment of debt(2,888)(1,469)(1,419)
Net income$77,031 $40,048 $36,983 
29

BRT Apartments Corp. (NYSE: BRT)
NON-GAAP FINANCIAL MEASURES, DEFINITIONS, AND RECONCILIATIONS
(dollars in thousands)

_____________________________________________________________________________________________________________________

The condensed income statements for the unconsolidated properties below present for the periods indicated a reconciliation of the information that appears in note 7 of BRT's Annual report on Form 10-Q to the BRT pro rata information presented here in this supplemental.

Six Months Ended June 30, 2023
TotalBRT's Pro Rata SharePartner Share
Revenues:
Rental and other revenue$23,608 $12,148 $11,460 
Total revenues23,608 12,148 11,460 
Expenses:
Real estate operating expenses10,812 5,649 5,163 
Interest expense4,845 2,473 2,372 
Depreciation5,265 2,678 2,587 
Total expenses20,922 10,800 $10,122 
Total revenues less total expenses2,686 1,348 1,338 
Other equity earnings113 113 — 
Gain on insurance recoveries65 30 35 
Gain on sale of real estate properties38,418 14,744 23,674 
Loss on extinguishment of debt(561)(212)(349)
Net income$40,721 $16,023 $24,698 

Six Months Ended June 30, 2022
TotalBRT's Pro Rata SharePartner Share
Revenues:
Rental and other revenue$47,338 $30,286 $17,052 
Total revenues47,338 30,286 17,052 
Expenses:
Real estate operating expenses21,011 13,496 7,515 
Interest expense10,919 7,050 3,869 
Depreciation11,844 7,577 4,267 
Total expenses43,774 28,123 $15,651 
Total revenues less total expenses3,564 2,163 1,401 
Other equity earnings77 77 — 
Gain on insurance recoveries567 428 139 
Gain on sale of real estate properties101,333 53,059 48,274 
Loss on extinguishment of debt(2,918)(1,488)(1,430)
Net income$102,623 $54,239 48,384 

30

BRT Apartments Corp. (NYSE: BRT)
Balance Sheet of Unconsolidated Joint Venture Entities
(amounts in thousands, except per share amounts)

_____________________________________________________________________________________________________________________

At June 30, 2023, the Company held interests in unconsolidated joint ventures that own 7 multi-family properties (the "Unconsolidated Properties") and an interest in a development project. The condensed balance sheet below present information regarding such properties:


June 30, 2023
TOTALBRT's Pro Rata SharePartner Share
ASSETS
Real estate properties, net of accumulated depreciation$280,305 $141,013 $139,292 
Cash and cash equivalents6,743 3,778 2,965 
Other assets37,701 9,453 28,248 
Total Assets$324,749 $154,244 $170,505 
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs233,445 114,237 119,208 
Accounts payable and accrued liabilities6,880 3,458 3,422 
Total Liabilities240,325 117,695 122,630 
Commitments and contingencies
Equity:
Total unconsolidated joint venture equity84,424 36,549 47,875 
Total Liabilities and Equity$324,749 $154,244 $170,505 


31
v3.23.2
Cover
Aug. 07, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 07, 2023
Entity Registrant Name BRT APARTMENTS CORP.
Amendment Flag false
Entity Central Index Key 0000014846
Entity Incorporation, State or Country Code MD
Entity File Number 001-07172
Entity Tax Identification Number 13-2755856
Entity Address, Address Line One 60 Cutter Mill Road
Entity Address, Address Line Two Suite 303
Entity Address, City or Town Great Neck
Entity Address, State or Province NY
Entity Address, Postal Zip Code 11021
City Area Code 516
Local Phone Number 466-3100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol BRT
Security Exchange Name NYSE
Entity Emerging Growth Company false

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