BRT Apartments Reports Fourth Quarter and Year End 2020 Results
BRT Apartments Corp. reported a net loss of $3.30 million for Q4 2020, translating to $0.19 per diluted share. For the full year, net loss totaled $19.86 million or $1.16 per diluted share. Despite these losses, the company achieved 15.6% growth in AFFO year-over-year, driven by increased occupancy and rental revenues.
Rental revenues from consolidated properties grew 3.8% to $7.03 million in Q4 2020, while total expenses at consolidated properties decreased 2.9%. The company maintains a strong balance sheet with $19.89 million in cash as of December 31, 2020.
- AFFO increased by 15.6% year-over-year.
- Q4 rental revenues from consolidated properties rose 3.8% to $7.03 million.
- Total expenses at consolidated properties decreased by 2.9%.
- Net loss for Q4 2020 was $3.30 million compared to net income of $6.15 million in Q4 2019.
- Total expenses at consolidated properties increased 15% for the year, primarily due to professional fees related to financial restatement.
- Delivers Strong Operational Performance for Quarter and Year -
GREAT NECK, N.Y., March 11, 2021 (GLOBE NEWSWIRE) -- BRT APARTMENTS CORP. (NYSE:BRT), a real estate investment trust that owns, operates, and, to a lesser extent, develops multi-family properties, today reported that for the three months ended December 31, 2020, it generated a net loss of
Jeffrey A. Gould, President and Chief Executive Officer of BRT stated, “In 2020 we increased occupancy by 40 basis points, grew average monthly rental revenue by over
Fourth Quarter Operating Results:
Net loss attributable to common stockholders for the quarter ended December 31, 2020 was
FFO was
1 A description and reconciliation of non-GAAP financial measures (e.g., FFO, AFFO and NOI) to GAAP financial measures is presented later in this release.
Diluted per share net income, FFO and AFFO for the quarter ended December 31, 2020 reflect the 817,000 increase in the weighted average share count, due to stock issuances pursuant to the Company’s at-the-market offering and, to a lesser extent, issuances pursuant to the equity incentive program.
Rental and other revenues from consolidated properties for the quarter ended December 31, 2020 grew
Total expenses at consolidated properties for the current three months decreased
During the fourth quarter, the Company’s NOI at consolidated same store properties grew
Results for the Year Ended December 31, 2020:
Net loss attributable to common stockholders in 2020 was
FFO was
Diluted per share net income, FFO and AFFO for the year ended December 31, 2020 reflect the approximate 950,000 increase in the weighted average share count due to stock issuances pursuant to BRT’s at-the-market equity sales program and to a lesser extent, issuances pursuant to the equity incentive program.
Rental revenues from consolidated properties rose 1.6 % to
Total expenses at consolidated properties increased
For 2020, the Company’s NOI increased by
At December 31, 2020: (i) eight multi-family properties located in six states with an aggregate of 1,880 units and a carrying value of
Balance Sheet:
At December 31, 2020, the Company had
Subsequent Events:
On March 3, 2021, we entered into an agreement to sell Kendall Manor - Houston, Texas to an unrelated third party, for approximately
On February 2, 2021, we entered into an agreement to sell to our joint venture partner our
Dividend:
On March 11, 2021, the Board of Directors declared a common stock dividend of
Conference Call and Webcast Information:
The Company will host a conference call and webcast to review its financial results with investors and other interested parties at 8:30 a.m. ET on Friday, March 12, 2021. The call will be hosted by Jeffrey A. Gould, Chief Executive Officer. To participate in the conference call, callers from the United States and Canada should dial 1-877-407-9208, and international callers should dial 1-201-493-6784, 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 at https://brtapartments.com/investor-relations.
A replay of the conference call will be available after 11:30 a.m. ET on Friday, March 12, 2021 through 11:59 p.m. ET on Friday, March 26, 2021. To access the replay, listeners may use 1-844-512-2921 (domestic) or 1-412-317-6671 (international). The passcode for the replay is 13715640.
Non-GAAP Financial Measures:
BRT discloses FFO, AFFO and NOI because it believes that such metrics are widely recognized and appropriate measure of the performance of a multi-family 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 (loss) (computed in accordance with generally accepting accounting principles), excluding gains (or losses) from sales of property, plus depreciation and amortization, plus impairment write-downs of depreciable real estate and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect funds from operations on the same basis. In computing FFO, BRT does not add back to net income the amortization of costs in connection with its financing activities or depreciation of non-real estate assets.
BRT computes AFFO by adjusting FFO for loss on extinguishment of debt; straight-line rent accruals; restricted stock and restricted stock unit expense and deferred mortgage costs (including its share of its unconsolidated joint ventures); and gain on insurance recovery. Since the NAREIT White Paper only provides guidelines for computing FFO, 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 loss of unconsolidated joint ventures, (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 (3) gain on insurance recoveries related to casualty loss. BRT defines "Same Store NOI" as NOI for all its properties that were owned for the entirety of the periods being presented, other than properties in lease up, development, and, because of the casualty it suffered in 2017 from Hurricane Harvey, Retreat at Cinco Ranch located in Katy, Texas. 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.
BRT believes that FFO, AFFO and 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 and AFFO to be useful in evaluating potential property acquisitions. BRT views Same Store 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 or dispositions during the periods.
FFO, AFFO and NOI do not represent net income or cash flows from operations as defined by GAAP. FFO, AFFO and NOI should not be considered to be an alternative to net income as a reliable measure of our operating performance; nor should FFO, AFFO and NOI be considered an alternative to cash flows from operating, investing or financing activities (as defined by GAAP) as measures of liquidity.
Forward Looking Information:
Certain information contained herein is forward looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. BRT intends such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words “may,” “will,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “apparent,” “experiencing” or similar expressions or variations thereof. Forward looking statements, including statements with respect to BRT’s multi-family property acquisition and ownership activities, involve known and unknown risks, uncertainties and other factors, which, in some cases, are beyond BRT’s control and could materially affect actual results, performance or achievements. Other factors that could cause BRT’s actual results, performance or achievements to differ materially from its expectations include: the recent restatement and ongoing review of its financial statements, accounting, accounting policies and internal control over financial reporting; the preparation of, and the audit or review, as applicable, of restated filings; the subsequent discovery of additional adjustments to its previously issued financial statements; and the impact of the COVID-19 pandemic on its operations, liquidity and capital resources. Investors are cautioned not to place undue reliance on any forward-looking statements and to carefully review the section entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2020.
Additional Information:
BRT is a real estate investment trust that owns, operates and develops multi-family properties. Interested parties are urged to review the Annual Report on Form 10-K to be filed with the Securities and Exchange Commission for the year ended December 31, 2020 on the investor relations section of the Company’s website at: http://brtapartments.com/investor_relations for further details. For additional information on BRT’s operations, activities and properties, please visit its website at www.brtapartments.com.
Contact: Investor Relations
BRT APARTMENTS CORP.
60 Cutter Mill Road
Suite 303
Great Neck, New York 11021
Telephone (516) 466-3100
Telecopier (516) 466-3132
www.brtapartments.com
BRT APARTMENTS CORP. AND SUBSIDIARIES
CONDENSED BALANCE SHEETS
(Dollars in thousands)
| December 31, 2020 | December 31, 2019 | ||||||||
| ASSETS | |||||||||
| Real estate properties, net of accumulated depreciation | $ | 160,192 | $ | 169,689 | |||||
| Real estate loan | — | 4,150 | |||||||
| Cash and cash equivalents | 19,885 | 22,699 | |||||||
| Restricted cash | 8,800 | 9,719 | |||||||
| Investment in unconsolidated joint ventures | 169,474 | 177,071 | |||||||
| Other assets | 7,390 | 7,282 | |||||||
| Total Assets | $ | 365,741 | $ | 390,610 | |||||
| LIABILITIES AND EQUITY | |||||||||
| Mortgages payable, net of deferred costs | $ | 130,434 | $ | 133,215 | |||||
| Junior subordinated notes, net of deferred costs | 37,083 | 37,063 | |||||||
| Accounts payable and accrued liabilities | 20,536 | 20,772 | |||||||
| Total Liabilities | 188,053 | 191,050 | |||||||
| Total BRT Apartments Corp. stockholders’ equity | 177,772 | 199,653 | |||||||
| Non-controlling interests | (84 | ) | (93 | ) | |||||
| Total Equity | 177,688 | 199,560 | |||||||
| Total Liabilities and Equity | $ | 365,741 | $ | 390,610 | |||||
BRT APARTMENTS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
| Three Months Ended December 31, (unaudited) | Twelve months Ended December 31, | ||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
| Revenues: | |||||||||||||||||||
| Rental and other revenue | $ | 7,029 | $ | 6,765 | $ | 27,451 | $ | 27,009 | |||||||||||
| Other income | 20 | 157 | 651 | 752 | |||||||||||||||
| Total revenues | 7,049 | 6,922 | 28,102 | 27,761 | |||||||||||||||
| Expenses: | |||||||||||||||||||
| Real estate operating expenses | 3,026 | 3,090 | 12,377 | 12,332 | |||||||||||||||
| Interest expense | 1,700 | 1,931 | 7,100 | 7,796 | |||||||||||||||
| General and administrative | 2,647 | 2,636 | 11,701 | 10,091 | |||||||||||||||
| Impairment charge | — | — | 3,642 | — | |||||||||||||||
| Depreciation | 1,595 | 1,568 | 6,742 | 5,916 | |||||||||||||||
| Total expenses | 8,968 | 9,225 | 41,562 | 36,135 | |||||||||||||||
| Total revenues less total expenses | (1,919 | ) | (2,303 | ) | (13,460 | ) | (8,374 | ) | |||||||||||
| Equity in loss of unconsolidated joint ventures | (1,293 | ) | (2,150 | ) | (6,024 | ) | (8,826 | ) | |||||||||||
| Equity in earnings from sale of unconsolidated joint venture properties | — | 9,932 | — | 9,932 | |||||||||||||||
| Gain on sale of real estate | — | 680 | — | 10,618 | |||||||||||||||
| Loss on extinguishment of debt | — | — | — | (1,387 | ) | ||||||||||||||
| (Loss) income from continuing operations | (3,212 | ) | 6,159 | (19,484 | ) | 1,963 | |||||||||||||
| Provision for taxes | 56 | 51 | 248 | 270 | |||||||||||||||
| (Loss) income from continuing operations, net of taxes | (3,268 | ) | 6,108 | (19,732 | ) | 1,693 | |||||||||||||
| (Income) loss attributable to non-controlling interests | (33 | ) | 40 | (130 | ) | (837 | ) | ||||||||||||
| Net (loss) income attributable to common stockholders | $ | (3,301 | ) | $ | 6,148 | $ | (19,862 | ) | $ | 856 | |||||||||
| Per share amounts attributable to common stockholders: | |||||||||||||||||||
| Basic | $ | (0.19 | ) | $ | 0.38 | $ | (1.16 | ) | $ | 0.05 | |||||||||
| Diluted | $ | (0.19 | ) | $ | 0.38 | $ | (1.16 | ) | $ | 0.05 | |||||||||
| Funds from operations - Note 1 | $ | 4,960 | $ | 3,507 | $ | 16,999 | 12,010 | ||||||||||||
| Funds from operations per common share - diluted - Note 2 | $ | 0.29 | $ | 0.21 | $ | 0.99 | $ | 0.74 | |||||||||||
| Adjusted funds from operations - Note 1 | $ | 5,639 | $ | 4,861 | $ | 19,213 | $ | 16,627 | |||||||||||
| Adjusted funds from operations per common share - diluted -Note 2 | $ | 0.33 | $ | 0.30 | $ | 1.12 | $ | 1.03 | |||||||||||
| Weighted average number of common shares outstanding: | |||||||||||||||||||
| Basic | 17,176,401 | 16,159,308 | 17,115,697 | 15,965,631 | |||||||||||||||
| Diluted | 17,176,401 | 16,359,308 | 17,115,697 | 16,165,631 | |||||||||||||||
BRT APARTMENTS CORP. AND SUBSIDIARIES
FUNDS FROM OPERATIONS
(Unaudited)
(Dollars in thousands, except per share data)
| Three Months Ended December 31, | Twelve months Ended December 31, | ||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
| Note 1: | |||||||||||||||||||
| Funds from operations is summarized in the following table: | |||||||||||||||||||
| Net (loss)income attributable to common stockholders | $ | (3,301 | ) | $ | 6,148 | $ | (19,862 | ) | $ | 856 | |||||||||
| Add: depreciation of properties | 1,595 | 1,568 | 6,742 | 5,916 | |||||||||||||||
| Add: impairment charge | — | — | 3,642 | — | |||||||||||||||
| Add: our share of depreciation from unconsolidated joint venture properties | 6,670 | 6,409 | 26,493 | 24,935 | |||||||||||||||
| Deduct: our share of earnings from sale of unconsolidated joint venture properties | — | (9,932 | ) | — | (9,932 | ) | |||||||||||||
| Deduct: gain on sales of real estate | — | (680 | ) | — | (10,618 | ) | |||||||||||||
| Adjustment for non-controlling interests | (4 | ) | (6 | ) | (16 | ) | 853 | ||||||||||||
| NAREIT Funds from operations attributable to common stockholders | 4,960 | 3,507 | $ | 16,999 | $ | 12,010 | |||||||||||||
| Adjust for: straight-line rent accruals | (10 | ) | (10 | ) | (40 | ) | (40 | ) | |||||||||||
| Add: loss on extinguishment of debt | — | — | — | 1,387 | |||||||||||||||
| Add: our share of loss on extinguishment of debt from unconsolidated joint venture properties | — | 963 | — | 1,236 | |||||||||||||||
| Add: amortization of restricted stock and RSU expense | 461 | 383 | 1,821 | 1,492 | |||||||||||||||
| Add: amortization of deferred mortgage and debt costs | 80 | 83 | 320 | 311 | |||||||||||||||
| Add: our share of deferred mortgage costs from unconsolidated joint venture properties | 147 | 149 | 626 | 980 | |||||||||||||||
| Less: our share of gain on insurance proceeds from unconsolidated joint venture properties | — | (216 | ) | (519 | ) | (630 | ) | ||||||||||||
| Adjustment for non-controlling interests | 1 | 2 | 6 | (119 | ) | ||||||||||||||
| Adjusted funds from operations attributable to common shareholders | $ | 5,639 | $ | 4,861 | $ | 19,213 | $ | 16,627 | |||||||||||
| Note 2: | |||||||||||||||||||
| Funds from operations per share is summarized in the following table: | |||||||||||||||||||
| Net (loss) income attributable to common stockholders | $ | (0.19 | ) | $ | 0.38 | $ | (1.16 | ) | $ | 0.05 | |||||||||
| Add: depreciation of properties | 0.09 | 0.09 | 0.39 | 0.37 | |||||||||||||||
| Add: impairment charge | — | — | 0.21 | — | |||||||||||||||
| Add: our share of depreciation from unconsolidated joint venture properties | 0.39 | 0.39 | 1.55 | 1.54 | |||||||||||||||
| Deduct: our share of earnings from sale of unconsolidated joint venture properties | — | (0.61 | ) | — | (0.61 | ) | |||||||||||||
| Deduct: gain on sales of real estate | — | (0.04 | ) | — | (0.66 | ) | |||||||||||||
| Adjustment for non-controlling interests | — | — | — | 0.05 | |||||||||||||||
| NAREIT Funds from operations per common share basic and diluted | 0.29 | 0.21 | $ | 0.99 | $ | 0.74 | |||||||||||||
| Adjustments for straight line rent accruals | — | — | — | — | |||||||||||||||
| Add: loss on extinguishment of debt | — | — | — | 0.09 | |||||||||||||||
| Add: our share of loss on extinguishment of debt from unconsolidated joint ventures | — | 0.06 | — | 0.08 | |||||||||||||||
| Add: amortization of restricted stock and RSU expense | 0.03 | 0.02 | 0.10 | 0.09 | |||||||||||||||
| Add: amortization of deferred mortgage and debt costs | — | 0.01 | 0.02 | 0.02 | |||||||||||||||
| Add: our share of amortization of deferred mortgage and debt costs from unconsolidated ventures | 0.01 | 0.01 | 0.04 | 0.06 | |||||||||||||||
| Deduct: gain on insurance recovery | — | (0.01 | ) | (0.03 | ) | (0.04 | ) | ||||||||||||
| Adjustments for non-controlling interests | — | — | — | (0.01 | ) | ||||||||||||||
| Adjusted funds from operations per common share basic and diluted | $ | 0.33 | $ | 0.30 | $ | 1.12 | $ | 1.03 | |||||||||||
BRT APARTMENTS CORP. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS TO NOI
(Dollars in thousands, except per share data)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||
| GAAP Net income attributable to common stockholders | $ | (3,301 | ) | $ | 6,148 | $ | (19,862 | ) | $ | 856 | ||||||||||
| Less: Other Income | (20 | ) | (157 | ) | (651 | ) | (752 | ) | ||||||||||||
| Add: Interest expense | 1,700 | 1,931 | 7,100 | 7,796 | ||||||||||||||||
| General and administrative | 2,647 | 2,636 | 11,701 | 10,091 | ||||||||||||||||
| Depreciation | 1,595 | 1,568 | 6,742 | 5,916 | ||||||||||||||||
| Impairment charge | — | — | 3,642 | — | ||||||||||||||||
| Provision for taxes | 56 | 51 | 248 | 270 | ||||||||||||||||
| Less: Gain on sale of real estate | — | (680 | ) | — | (10,618 | ) | ||||||||||||||
| Add: Loss on extinguishment of debt | — | — | 0 | 1,387 | ||||||||||||||||
| Equity in loss of unconsolidated joint venture properties | 1,293 | 2,150 | 6,024 | 8,826 | ||||||||||||||||
| Less: Equity in earnings from sale of unconsolidated joint venture properties | — | (9,932 | ) | — | (9,932 | ) | ||||||||||||||
| Add: Net income attributable to non-controlling interests | 33 | (40 | ) | 130 | 837 | |||||||||||||||
| Net Operating Income | $ | 4,003 | $ | 3,675 | $ | 15,074 | $ | 14,677 | ||||||||||||
| Less: Non same store and non multi family | ||||||||||||||||||||
| Revenues | (374 | ) | (372 | ) | (3,982 | ) | (4,469 | ) | ||||||||||||
| Operating Expenses | 125 | 137 | 1,800 | 2,364 | ||||||||||||||||
| Same Store Net Operating Income | $ | 3,754 | $ | 3,440 | $ | 12,892 | $ | 12,572 | ||||||||||||
FAQ
What was BRT Apartments Corp's net loss for Q4 2020?
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