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Mar 31, 2024
BRT Q1 2024 Earnings Report
Reported a net loss and increased Combined Portfolio NOI.
Key Takeaways
BRT Apartments Corp. reported a net loss of $3.2 million, or ($0.17) per diluted share, FFO of $0.25 per diluted share, and AFFO of $0.35 per diluted share for the first quarter of 2024. Combined Portfolio NOI increased 1.6% compared to the prior-year period.
Net loss of $3.2 million, or ($0.17) per diluted share
Funds from Operations, or FFO, of $0.25 per diluted share and Adjusted Funds from Operations, or AFFO, of $0.35 per diluted share.
Combined Portfolio NOI increased 1.6% for the first quarter of 2024 compared to the prior-year period.
Repurchased 123,061 shares during the first quarter at a weighted average price of $18.43.
BRT
BRT
BRT Revenue by Geographic Location
Revenue by Geographic Location
Alabama Revenue
CapyFin.comGeorgia Revenue
CapyFin.comTexas Revenue
CapyFin.comSouth Carolina Revenue
CapyFin.com Forward Guidance
The operational environment in BRT’s Combined Portfolio is expected to be consistent with other Sunbelt-focused operators with new supply muting new and renewal lease rent growth until at least the second half of 2024 as the new supply is absorbed.
Positive Outlook
- BRT intends to emphasize stable average occupancy within the portfolio until it can achieve a lift in rental rates.
- Controllable expense growth is expected to grow modestly compared to 2023 and non-controllable expenses, particularly insurance, are expected to moderate somewhat compared to 2023.
- BRT’s balance sheet has no debt maturities until the third quarter of 2025, improved pricing and full availability on its credit facility and ample liquidity to deploy.
- A more favorable transaction environment in the second half of 2024 with smaller, private operators experiencing capital, ownership and/or refinancing challenges.
- Long-term, the Company believes the Sunbelt offers compelling advantages due to the predominance of pro-business states, along with better population and job growth from migration patterns and business investment.
Challenges Ahead
- The operational environment in BRT’s Combined Portfolio is expected to be consistent with other Sunbelt-focused operators with new supply muting new and renewal lease rent growth until at least the second half of 2024 as the new supply is absorbed.
- The recently completed 240-unit Stono Oaks development in Johns Island, SC, of which BRT owns a 17.45% interest, is in lease up and is anticipated to be to a drag on earnings from equity in unconsolidated joint ventures as the Company begins recognizing depreciation and interest expense associated with the development.
- The Company remains patient on asset growth in the near term
- Focus on stabilizing occupancy in a challenging leasing environment during 2024
- Bridge year in 2024
Revenue & Expenses
Visualization of income flow from segment revenue to net income