BRT Apartments (BRT) 7 May 212021 Q1 Earnings call transcript

Good day, and welcome to the BRT Apartments Corp. Conference Call for the First Quarter of 2021. Today's call is being recorded. At this time, I'd like to turn the conference call over to Evelyn Infurna of ICR. Thank you.

begin. may You

day, call. Good welcome BRT to Thank everyone, conference Apartments' you. and

On President Officer; Jeffrey Officer; is Baltimore, the today call President. Gould, Vice and are Zweier, Senior Vice Senior also George and Chief Kalish, Financial David President; Ryan available Executive Chief

this being a www.brtapartments.com. the at webcast company's reminder, As through website call is

file today. BRT's Additionally, supplemental earnings and review information the company website. your section The Investor later the Relations release on the plans to company's of are the XX-Q available for

Before like statements this the XXXX Securities I'd on we call meaning conference beliefs. Act and based Reform Private that begin, management's everyone remind to assumptions current the contains of within forward-looking are Litigation expectations, that of

anticipate, context Form encouraged these the intend uncertainties more negatives cause are statements factors review similar that required factors revenues, from NOI; regarding that any materially in variations includes net unconsolidated NOI, of operations, forward-looking substitute not expressed Except forward-looking statements. assets can supplement law, as unconsolidated those these results reliance to or These limited are Listeners financial and of statements. operating liabilities and and measures which words. expectations to with obligation and and statements for future. other a to for subsidiaries, place otherwise subject in BRT's update be accordance share such should non-GAAP operating words often such adjusted ventures funds forward-looking results otherwise as used AFFO; complete estimate, by Forward-looking the the statements. all and statements discussion expressions are are of of statements assumptions This also by from BRT's measures non-GAAP computed to be risks expenses, of strategy from and any BRT's to, should and net call share with company's our any respect on Unless a operations, requires, a income differ any revise the not FFO; the not publicly reflects of forward-looking future actual to a rata undertake XX-Q pro and are income could They or for of rata undue to information or not results. identified include, or forward-looking regarding risk could does results affect discussions at but discussion and GAAP. of pro guarantees and as of These funds performance. expect, or not conference the or indicated, believe, BRT

BRT's wholly better unconsolidated understanding share For a and more the the -- portfolio revenues, Unless Investor and complete of supplemental among provide release and or joint plans rounding. are indicated later pro BRT XX-Q, uses portfolio our liabilities, see the the financial owned to unconsolidated references to pro amounts multifamily requires, subsidiaries. company's ventures. Relations the our subsidiaries approximate assets and things, and in results discussion with GAAP, help references refer context to results and rata other to and website are or currently BRT's reported BRT available which earnings expenses, rata of file of otherwise today. its which share a NOI, otherwise our accounts at its to of reflect information, All and under tab as accordance other

presented with rata Accordingly, reports in in and of used with certain the accounts has and supplemental pro rata with the the with use caution operations information our in presented in GAAP GAAP. representative is pro accordance information limitations filed our and be should of not conjunction However, as and ended our Corp. the XXXX BRT CEO Jeffrey go March refer Gould, XX, XX, Apartments turn XXXX the SEC. I'd quarter and like to and XXXX. quarter ended quarter refer the of Further current to to President Please now over references to Jeff. references the ahead, March to to the call quarter data

Thank BRT's conference quarter you, like welcome Evelyn. first to call. everyone would to I

are rates. to of that to us to pleased strength, continue see pockets selectively raise we allowing share We rental

We the on With of quarter. for confident equity at X, in our portfolio XX% the $X the million to $X.XX states, X.X% per our in the due basis. loss X the or many million consisting our interest in to share $X.XX per quarter increased or $XX.X share from XXXX, for our increased and per a XX% and $X.XX renewals million $X.X owned reduced XX%. revenues diluted to per the to increase $X.XX as for of quarter. or approximately X%, or increased diluted $X.X and NOI buy owned million strong portfolio to We properties in increased or of X.X% have million XX in is for including share on May had BRT's rates to properties expenses XXXX to quarter compared to current million approximately the portfolio, compared to the the storms $X.XX on of compared share X% the by to on as which for XXXX by share continue quarter. new current in quarter respect quarter impacted the and margins to properties XX,XXX on rates to diluted per share ahead subsidiaries, XXXX year by BRT. wholly focus or sell of rental any portfolio did $XX.X these unconsolidated net quarter. $X portfolio common FFO Total BRT quarter units to XX availability. operating from $X.X in BRT's $X.XX oversees in our quarter. facility to joint million demand million in increases the ventures million We for in XX%. interest Rental X% versus portfolio a current quarter averaged diluted capital for increased $XX.X in per primarily rates multifamily took quarter. actively credit X%. XXXX recently or AFFO renewal to insurance million compared an over $XX.X The The increased is was grew a in XX remain on increased interest to not the recoveries X $XX joint current share for diluted or attributed structure, quarter, $XX.X share. loss Net multifamily as ranges stockholders by as the properties, current in rent was our during estate of about diluted per rose unconsolidated properties percentages expense venture improved we full in there XXXX owned management, approximately diluted XXXX Rental average real million operating the the our for million the the by current AFFO $X.X that extent, portfolio. current leases X% and approximately February, place ice our Texas and lesser markets.

annualized the at units $X,XXX the unit, current quarter an approximately of return for estimated on average repositioned an front, the -- XX%. On per investment approximately of quarter, were yielding XX value-add For

unit we our of a investment in in report when costs incurred return released. the financial have on is supplemental may period, portion the the the been information, As but reflected prior

to of next be and the scheduled in NOI estimate years there the in near to of a growth. that We drive that at continue be We approximately term, pipeline our in the rent to our the long anticipate slowdown the units term, in portfolio couple to will renovation our will we completed continue over approach the units has number repositioned ability be same-store a properties. that factor over that positive note, and value-add XXX

$XX.X the $XX.X the pool properties NOI wholly in current increase XX,XXX X joint of to current Same-store quarter, $XX in NOI quarter, an million X% due quarter quarter, in in for representing the XX increase primarily a to unconsolidated by increase quarter. the the assets $XX.X was rose the million slightly million is comprised in mainly offset noncontrollable same-store the to portfolio representing from X.X% assets. from occupancy, owned expenses XXXX for same-store and revenues XX from revenue quarter. the taxes was The an remaining expenses, in $XX.X change properties, are of totaling rental totaling an our Same-store in million X,XXX X.X% in million quarter, Our The whereas million are increase current those X,XXX current XXXX of insurance. portfolio ventures. units of an units. increase with units grew in in XXXX $XX.X and

wholly Apartments quarter completed additional to to in $X,XXX a to Same-store XXXX, XX% from unit It Manor, II, Civic will on of these for entered we rental our transaction. properties for appeal in from partner million quarter estimate taxes related In interest joint is a May per of will obtain Center XXXX, when Civic recognize current partner a XXXX located can ownership into interest ending our recognize venture the approximately Houston, XX% March venture portfolio Florida Texas gain that owned XXXX, XX, On million, we gain an Center our to for our in Daytona we the $X.X feel the June in South XXXX, grew continue that $X,XXX XXXX. multifamily both Anatole we We April our an quarter. purchased Kendall for million for X.X% and approximately the $XX.X property in rate result. we've in joint contract We which Haven, In increases $X.X of Mississippi that million. unit anticipated X, the Beach, sale million. in per this for quarter second property XX%. a I to sale we to $X.X in sell located we $X positive

restricted our $XXX.X X, At cash XXXX, sheet. improvements $XX.X equity XX, available approximately and balance At to the facility. $XX assets million, $XXX and million, to March total of $XX million million including total million million, cash liquidity of million. cash cash up $XX.X for total stockholder million, XXXX, our Turning working property was of of equivalents, credit and had $X.X capital for equivalents, of available May under debt $XXX.X and representing we cash

annualized $XX.XX capital close an years. today intend remaining X.X of equivalents, based for expenses of our $X.XX to of of and purposes. mortgage The working $XX.X of X, debt operator have In with service turn wholly X, Thank and our million to is a stock at of share, business of yield maintain weighted of for paid the on which At X.X% cash On for interest of minimum, addition, $XXX.X we unconsolidated the our share combined on used day-to-day to term has maturity month a over of is to a average price joining that, owned joint in our rate each X weighted of call. properties, properties. joint cash our million, debt we our ventures unconsolidated questions. which XXXX. dividend and quarterly April us mortgage our average I May debt totaled for per Operator? our aggregate X.XX%, your ventures, the as call for will you With equivalent conference approximately

Our first line question Gaurav Securities. Mehta the Instructions] with comes [Operator of National from

additional on you that your you JV of Civic property? some acquired the why in -- color acquisition provide Center. on question maybe interest First on in Can interest

Yes.

of speaking Center? Civic You're

us mentioned JV why Yes, tell interest in I acquired property. additional think that? just that if And you did you you

we been that's and property effective an a opportunity. move it years. comfortable for partner very great over that purchase. We're the there, interest been and We at just it's our terrific went we smart buying a were and was the performing with us and ahead Yes, with forward price, thought

we own just that. been So it's and it. us, asset wanted Simple for a of more great as to

Okay.

what getting Second kind selling you for the you're that you're on the dispositions. assets question provided guys this CapEx quarter? Have of

Houston selling low in didn't that. provide some for things goes the range. somewhere both we That numbers very X% that and at on the on around No, I Daytona can effective basically light sale. shed caps, it, or We're for our

market. guys you color are your acquisitions? generally? seeing Can Maybe And going are the on provide for Okay. you expectations forward on what what acquisition some

landscape. competitive about sure. obviously, growth, are growth, reasons, et buy. of and Southeast focusing It's excited Yes, employment it's lots difficult people population of cetera. Very -- a time to the for Lots

have liquidity. on sitting We cash. We're

to us. ATM -- is line fully is an available. available have not The We credit

to time, answer for an same it's that So find I We buy, allows, not to at we'd of difficult. the to like opportunities, but -- buyout the your have easy time but partners us, an we'll to is it interesting question. is but what see think platform

Our Securities. next Wunderlich of question comes from Craig Kucera the with line

that it back any I -- assets sold just relatively split would like between bought. Or spread cap to two? and rate delta that? was the flat the there a Was you between circle to

there yes. believe we some was Yes, delta,

sales, the Gaurav, selling the -- on we're sale So Daytona to at like low basically we're Xs to I and trying for said Houston.

On the purchases I out, the have, advantages [intelligence], we purchase the know we for reasons. think We reasons, lots to better definitely think I and of get the we one of side. buys, the on looking do improve partner asset on various

So give you very the the effectively, but differential, tell that I of can't good us. specific could for I a been [arb] split has you

of capital, commentary, that use asset? it but -- What to And now on given thoughts Great. you proceeds of from Kendall Manor, I kind TBD. the current you actually of down with the things sort how were your might pay difficult your just of recycling Okay. debt thinking upcoming sale of that use think, sort were selling versus are is buy,

on of the yes, sales LTB Yes. a plan lead and to we And made used take purpose. cognizant a embedded recognize appropriate to want the portfolio, time Good these gains high sense. obviously, it embedded a about there's in-house, expenses an In question. some and have will properties. said margins are use Houston. deleverage we time and We've all, that we for talking dollars that we've some this gains, down lot Yes, proceeds the -- we portfolio. well the sell These We've reasons we smart been -- is And operating sales percentage as Daytona. sell, the of towards been how yes, this which we to do some we the their of and were that had just portfolio. particular was will why to in the assets, the because it we be and go case, bring of extent. appropriate I before, thought particular money our as of to of and to, difficult

me. as seeing sounds more circled on for pricing Have soft Got you one 'XX, asset just back sale Kind it. for like the sales. it the of of you're about other And really 'XX? of half back in you strong clearly, any half assets think

only date. ones but At for if there's it are looking that the always point, portfolio. the rationale We're at are we this have to Daytona reasons potentially, those Houston and that And alternatives the and to date. ones And the we to us at sometimes do when the sold them, to partners time portfolio, opportunity determined. we have all we look it's it and and buy be all consider give different and

Got more new are And in more JV at versus that recycling more down bringing to think about this maybe the capital? about purchases point you as you I is there to attractive And take guess opportunities assets think future, as it. you interest?

do was earlier have Yes. at partners opportunity I question, you we with in partners that like performance which asked we're higher have doing rates for far in that definitely as better assets would the rates buying The cap for than times us. and are partners, -- we and far as good buying a deals we we out the better better out, the buy cap say sure new to those on with market. one, purchases

Yes, So that for we future, to hope do do we more the in sure. that. hope to

Thank you.

Rob of comes Stevenson from with Our the line next question Janney.

Rob Dumanski This is on Steve Stevenson. for

I guess, I wanted your going for pricing guess, in units? Just if -- terms underwriting and curious to thoughts soft about reserves CapEx standards, terms redeveloping pricing? I the of future on guess, hear to guess, I of underwriting terms in of, environment hear the and underwriting Just where, in forward cost

your question. I understand sure not I'm

As far value-add, question? is your doing that as

Yes, that's correct.

Yes.

value were -- you been it. can would wasn't a our see, we quarterly performed to on on pleased overall. percent But we reduced -- of very and we've exactly don't number time COVID, we XX% If that doing In units don't upgrade, significantly. do we've amount pretty how typically do we've we done and very the of opportune as So we add. the successful achieve, a a return tremendous collections to minimum say, an basis like it with XX-plus investment I feel

a X, quite As of XX returns we quarter going of $X,XXX then I units, do add we watch to about don't Thinking mentioned next got to earlier, do how about we reengage just XX%. unit, we're high and And value of on more. a the did market north to we very expect us bit a back. and amount to or tremendous And that. the of turns units see the hope

to turn and Mr. concludes any Gould I'll the back final question-and-answer Ladies session. floor this gentlemen, our for comments.

want thank thank about for all and all attending. We you. future. you say day, I with soon. Speak and nice all Yes. you wishing have We're interest to a our your just been you simply excited appreciate

concludes Thank today's you. This conference.

You participation. this your for may time. disconnect at your lines Thank you