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Dec 30, 2024
BRT Q4 2024 Earnings Report
BRT Apartments Corp. reported a decrease in net income and adjusted funds from operations for the fourth quarter of 2024, alongside a slight increase in total revenues.
Key Takeaways
BRT Apartments Corp. experienced a decline in net income and adjusted funds from operations in Q4 2024 compared to the previous year, despite a modest increase in total revenues. The company's multi-family properties saw a decrease in average occupancy rate, while the average rental rate per unit increased. The company also repurchased shares and made preferred equity investments.
Total revenues for Q4 2024 were $23,969,000, a slight increase from $23,508,000 in Q4 2023.
Net loss attributable to common stockholders for Q4 2024 was $2,070,000, compared to a net loss of $1,737,000 in Q4 2023.
Adjusted Funds From Operations (AFFO) for Q4 2024 were $1.43 per diluted share, a decrease from $1.52 per diluted share in Q4 2023.
The company repurchased 193,529 shares of common stock for approximately $3,495,000 during 2024.
BRT
BRT
BRT Revenue by Segment
BRT Revenue by Geographic Location
Revenue by Segment
Rental and Other Revenue
CapyFin.comOther Income Revenue
CapyFin.comRevenue by Geographic Location
Tennessee Revenue
CapyFin.comMississippi Revenue
CapyFin.comAlabama Revenue
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CapyFin.comFlorida Revenue
CapyFin.comTexas Revenue
CapyFin.comSouth Carolina Revenue
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CapyFin.comNorth Carolina Revenue
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CapyFin.comMissouri Revenue
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CapyFin.com Forward Guidance
The company anticipates generating approximately $1.2 million of interest income from preferred equity investments in 2025. Operating expenses are expected to decrease due to more favorable insurance premiums. However, the company faces challenges in fully funding balloon payments and may need to issue additional equity or dispose of properties on potentially unfavorable terms if unable to refinance debt.
Positive Outlook
- Anticipated $1.2 million in interest income from preferred equity investments in 2025.
- Expected decrease in insurance expense by approximately $750,000 to $1.0 million in 2025 due to more favorable premiums.
- Board of directors increased share repurchase authorization to up to $10 million through December 31, 2026.
- The company continues to pursue alternative investments in the multi-family property arena.
- The company maintains a competitive benefits program for employees, fostering a positive work environment.
Challenges Ahead
- Operating cash flow and available credit facility funds will be insufficient to discharge all maturing mortgage debt.
- Potential inability to refinance mortgage debt on acceptable terms, leading to unfavorable property dispositions.
- Challenging acquisition environment and limited funds available for new property acquisitions and value-add projects.
- Increasing interest rates make obtaining new mortgage debt less attractive.
- Potential for continued competitive pressure and adverse impact on rental rates and occupancy in certain markets like Nashville.