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Jun 30, 2021
BRT Q2 2021 Earnings Report
Reported positive year-over-year results driven by a 4.9% increase in portfolio's NOI and strategic dispositions.
Key Takeaways
BRT Apartments Corp. reported a strong second quarter for 2021, with significant year-over-year growth in FFO and AFFO per diluted share. The company benefited from higher rental and occupancy rates, completed strategic property sales, and reduced debt.
Net income attributable to common stockholders was $6.03 million, or $0.34 per diluted share, compared to a net loss of $4.25 million, or $0.25 per diluted share, for the three months ended June 30, 2020.
FFO was $5.06 million, or $0.29 per diluted share, compared to $4.19 million, or $0.24 per diluted share, for the three months ended June 30, 2020.
AFFO was $5.49 million, or $0.31 per diluted share, compared to $4.71 million, or $0.27 per diluted share, in the three months ended June 30, 2020.
NOI at same store properties in the entire portfolio increased by 7.5% to $14.05 million, reflecting improved operating margins.
BRT
BRT
Forward Guidance
BRT expects to complete the purchase of the remaining interest in Bells Bluff in August, funded by new fixed-rate financing. The company also anticipates recognizing a significant gain in Q3 2021 from recent property sales.
Positive Outlook
- Completion of Bells Bluff acquisition expected in August.
- New 20-year fixed-rate financing for Bells Bluff at 3.48%.
- Anticipated $30 million share of gain in Q3 2021 from property sales.
- Reduction of mortgage debt through property sales.
- Focus on acquiring multi-family properties to increase cash-flow.
Challenges Ahead
- Completion of Bells Bluff acquisition is subject to customary closing conditions.
- Gain recognition in Q3 is after giving effect to a $4.2 million share of a mortgage prepayment charge.
- Impairment charge related to the proposed sale of two multi-family properties in St. Louis, Missouri.
- Increase of weighted average shares of common stock outstanding impacted diluted per share net income, FFO and AFFO.
- Risks associated with multi-family property acquisition and ownership activities.