Loading...
•
Dec 31, 2023
BRT Q4 2023 Earnings Report
Reported results for the fourth quarter and year ended December 31, 2023.
Key Takeaways
BRT Apartments Corp. reported a net loss of $1.7 million, or $(0.11) per diluted share, for the fourth quarter of 2023. Funds from Operations (FFO) was $0.34 per diluted share, and Adjusted Funds from Operations (AFFO) was $0.38 per diluted share. Combined Portfolio NOI increased by 6.4%.
Net loss of $1.7 million, or $(0.11) per diluted share.
FFO of $0.34 per diluted share and AFFO of $0.38 per diluted share.
Equity in earnings of unconsolidated joint ventures was $588,000.
Combined Portfolio NOI increased 6.4%.
BRT
BRT
BRT Revenue by Segment
Revenue by Segment
Rental and Other Revenue
CapyFin.comOther Income Revenue
CapyFin.com Forward Guidance
BRT anticipates the operational environment in its Combined Portfolio 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. They intend to emphasize stable average occupancy within the portfolio until it can achieve a lift in rental rates.
Positive Outlook
- Controllable expense growth is expected to grow modestly compared to 2023.
- 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.
- 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
- New supply muting new and renewal lease rent growth until at least the second half of 2024 as the new supply is absorbed.
- BRT intends to emphasize stable average occupancy within the portfolio until it can achieve a lift in rental rates.
- 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 lead to a drag on earnings from equity in unconsolidated joint ventures as the Company begins recognizing depreciation and interest expense associated with the development.
- Company remains patient on asset growth in the near term but is cautiously optimistic that it may find new opportunities to deploy its available liquidity for rescue capital situations and/or asset acquisitions in late 2024 and into 2025.
- The operational environment in BRT’s Combined Portfolio is expected to be consistent with other Sunbelt-focused operators.
Revenue & Expenses
Visualization of income flow from segment revenue to net income