BRT Apartments (BRT) 9 Nov 212021 Q3 Earnings call transcript

Good day, and welcome to the BRT Apartments Corp’s Third Quarter 2021 Earnings Conference Call. Today’s conference is being recorded. At this time, I would like to turn the floor over to Stephen Swett at ICR. Thank you.

You may begin.

us conference BRT call. joining quarter Corp’s for earnings XXXX you today Apartments for third Thank

Zweier, and call and that on of within XXXX are On President and Officer. George forward-looking based the and call Ryan beliefs. Chief Financial Litigation the meaning today like to remind Executive contains Also is Securities Baltimore. I available David Vice Presidents, Senior Jeffrey Act everyone would of Gould, Chief Kalish, current Reform assumptions, Officer; expectations, management’s this conference statements the Private are that

words Forward-looking and statements can such or often as and expressions, expect, be negatives intend, identified anticipate, these words. by estimate, variations of believe, similar

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

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

the rata be accordance the September in information quarter the and XXXX. with rata quarter of and limitations, reports with GAAP. accounts pro information However, to data of the refer the pro our ended GAAP refer as our with with filed current operations use not has should and references to ended SEC. and presented the our in presented supplemental to XXXX is conjunction in caution to Accordingly, September XX, references XX, XXXX, quarter the representative quarter certain used Further and in

now to and Gould. ahead information like file BRT’s to The Investor been website shortly. turn at on go section of Relations reminder, As release plans www.brtapartments.com. call Jeffrey I’d Jeff? CEO, over posted company’s to and have President supplemental now the company Please a earnings its the the XX-Q

to welcome the and you, Thank call.

results our quarter, progress increase value, portfolio multi-family we to with third reduce our our wholly-owned pleased leverage, initiatives on are strengthen and portfolio, in to as perform the We our continue our make very continued well, unlock to and platform.

to consolidated connection or venture share two $X.X paying million also of begin compared results was me of extinguishment unconsolidated to share share off to It joint million of in share compared rates mortgage $X.XX of of our the the sales. $X.XX $X.X for in on with debt $X.XX share in third per rental reflects reflects property a and diluted share attributable million million share properties. due incurred share or the than increase million income per the per Let the loss quarter This $X.X loss our with diluted in net expense AFFO several $X.X interest to diluted less or per per same was The $X.XX across or was $X,XXX $XXX,XXX $XX.X of debt diluted per our portfolio. in operating quarter $X.X loss debt improved or incurred XXXX. the quarter on share of amount XXXX. diluted $XX.X and principle common of decline of stockholders $X.XX reduced occupancy to same million was our quarter an compared the Net primarily third at year. $X.XX million FFO XXXX. a per diluted last or extinguishment XX.X% margins, in by

containing portfolio, XX, portfolio consists XXXX, multi-family to of our communities wholly-owned at eight Turning September XXXX units. our

owned for also was X% in basis quarter. our primarily the versus rental up were X% to due quarter million $XX.X quarter. the September unconsolidated in of Average million the XXXX, units. the $XX.X entities the million share during XX XX, rata This assets to quarter. decrease million XXXX sale through X,XXX XXXX compared in the unconsolidated third of to was XXXX XXXX containing $XX.X were current Average including quarter month to rents quarter. quarter points per XXXX was NOI the for third up up quarter. entities interest occupancy $XX.X the approximately pro We XX.X% communities another compared ended XXX compared $X,XXX the to revenues, In Portfolio

For leases we and leases X,XXX third same-store X.X%, XXXX, signed on ventures. our at our for units in spreads favorable portfolio of In included wholly-owned saw the quarter, XX.X% third XXXX new the of spreads units the and of pool quarter overall renewal X.X%. units unconsolidated joint of X,XXX spreads comprised X,XXX in

X% X.X% same-store to X.X% quarter, the to compared increased XXXX same-store quarter, expenses to and For same-store grew NOI current compared XXXX XXXX compared the quarter, quarter. the revenue the increased

of buying wholly-owned asset to well will ability believe owning unique value the joint in understand continued on to portfolio our partners. We an approach our successful venture as to outright. positioned quarter, it by execute to we and transactions we be this Regarding true prior to add our the potential are

million multi-family Greenville, is As interest Bluff previously rate that and unit connection a the In the a X.XX%. venture we XXX property joint West such The owns of located completed BRT. Nashville, wholly-owned with announced, interest fixed our loan we obtained of closing, remaining $XX.X purchase Bell’s for purchase Tennessee. by was the bearing $XX in the now in partners interest property XX.X% rate price XX-year Parc XX% an venture end quarter approximately remaining the interest mortgage million, South The Georgia of Apartments Subsequent completed Ocoee, a XXX, Also owns venture XX% the Lawrenceville the a purchased located Avenue that Crestmont at the had in the that $X.X Florida. previously we sale located and interest unconsolidated announced, in owned these in in properties. in joint Carolina. October, for million, property Thornblade, XXX-unit to at as we in multi-family We

an share million – result of our three XX% after of a over produce $X.X on that the a of were As these These we approximately the $XX debt. years share the of the properties of recognized million owned. sales, extinguishment we they loss IRR, gain

Louis underperforming the Additionally in had our transaction. in impairment this quarter for respect interest charge located a two second we in the November, $X of we In with XXXX, of completed properties XXX,XXX to recorded million. St. sale

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

return a financial have incurred the the over renovation units years. the XXX for is portion several released. cost next our have supplemental the we unit Across in may period, approximately entire investment the reflected prior As report slated on our of in but portfolio, we information been when

Turning sheet. balance to the

At X.XX%. and the million were sales $XXX mortgages Also, bore our $XXX total properties. quarter cash This During million scheduled total average under consolidated $XX.X in we the included equity million of we $XXX and to unconsolidated by third rate at the of million of debt restricted bore The million mortgage total equivalents, interest our weighted our quarter, liquidity paid XXX million with debt Apartments. of $XX $XXX September The we at and scheduled in million. total subsidiaries of XXXX, end of off facility. of X.XX%. on properties interest debt mortgage up on and credit of to assets had in a of million, available stockholder average was mature of cash and connection quarter BRT within mortgage these a XX, XXXX debt $X.X cash to XXXX in weighted Avenue rate $XX.X first our mature Available reduced Parc

debt of share purposes addition, debt for is aggregate average million unconsolidated X.X our and working cash million and average cash for ventures of used joint has capital weighted which approximately $XX.X to and maturity rata unconsolidated a combined with ventures of the X% our wholly-owned The $XXX.X mortgage applicable weighted our totals term properties rate interest pro In equivalents, joint our for ventures mortgage had a years. of remaining day-to-day renovations.

September value at hope XX, to down down We bring time. September debt-to-enterprise continue from over XX% leverage our Our XXXX as XX% XX, XXXX. to of was

and XX, price September $X.X Net our sales proceeds XX,XXX $XX.XX quarter XXXX, an program, the of pursuant sold to were ATM after at fees average During we commissions approximately per million. ended shares share.

on paid stock In and build. current of on this quarterly we XXXX. share a yield the The X.X% $X.XX dividend of to reflect business based as price conclusion, our $XX November X, X, the per from of the year dividend our increase Finally, results of to our continue X.X% on $X.XX October equates value annualized an of dividend. prior close we

portfolio we grow sheet. our Our portfolio and strengthen is our performing balance our very efforts well and continue wholly-owned to

we XXXX entire work excited on we look for as I year. properties opportunity has Southeastern team next and want successful, their am been the That the to the balance hard focus call. to and thank have and the Our and dedication. of the Sunbelt our BRT into completes I with in

open now the questions. will We call Operator? your to

you. questions I this remarks. registered Jeff to the would time. like any over [Operator for Instructions] Gould at to back are closing turn Thank conference There no

appreciate say thanks we I Have very continued time, interest day. Yes. good and your in And for want your BRT. thank much. you all a

concludes conference This today’s call.

participating and a for you disconnect Thank may have pleasant You your lines. day.