BRT Apartments (BRT) 15 Mar 222021 Q4 Earnings call transcript

Good day and welcome to the BRT Apartments Corp. Fourth Quarter and Year-end 2021 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the floor over to Mr. Stephen Swett, Investor Relations. you. Thank

begin. may You

joining year-end for XXXX for fourth Apartment quarter and earnings us you BRT today Corporation's Thank conference call.

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

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

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

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

information supplemental turn I'd President earnings company's Relations now call Chief and the posted like to and section at over As website have ahead, Officer, a www.brtapartments.com. the Executive been release of the Investor go Gould. Please, Jeff. to BRT's on reminder, Jeffrey

the quarter sheet. solid The year, and and for to platform, on owned continuing our fourth was our call. off balance welcome decreased simplify value we to make another value, a our to while capping strong increase quarter BRT, Thank during to unlock continue to portfolio, our enterprise goals wholly strengthen you progress multifamily which debt

diluted Net $X.XX million to in the Let share or per share higher diluted for compared acquisition diluted was million loss share, with AFFO $X.XX per $X.XX of per several $X.X and quarter million $X.XX partner's or operating margins or the stock affected compared in diluted loss but per $X.XX amortization $X.X effect $X.XX Contributing million our stockholders begin not mentioned by properties of and attributable at diluted ventures. insurance $X.XX expenses in me year. same joint same-store common share XXXX. last recoveries. increase million to per share quarter This fourth of XX% is was interest are $X.X results fourth the reasons was or our the per prepayment $X.XX the debt of for of or to as before, to restricted same quarter non-cash share in was charges increase diluted quarter to XXXX. the XXXX. the our million per of or $X.XX net FFO a net FFO same share, compared in

reasons operating share on the diluted common diluted contributing $X.XX or absolute AFFO to share $X.XX same-store per and of prepayment was $XX.XX or partner's diluted in compared non-cash or basis was or the share effect FFO of an per full for by of diluted ventures. properties share amortization in XXXX, a same For margins to net our per loss million million $XX.XX XXXX. million acquisition contributing expense, primarily to stock recoveries. share stockholders million of or the restricted income due This increase in net million $XX to XXXX. higher interest was increase at and was $X.XX share affected but or XX.X% $X.XX FFO FFO, XXXX, compared per diluted increase several to diluted the $XX.XX $XX.XX the costs, joint $X.XX per per debt year $X.XX to to $XX.X our insurance attributable in share compared not in million was per

December our our portfolio, consists wholly-owned XX at units. to XXst, of portfolio totaling XXXX, Turning communities multifamily X,XXX

XXXX XX, occupancy We quarter. and compared the through to X,XXX $X,XXX XX Average Average another also to owned unconsolidated up compared interest the units. in quarter were XX.X% entities the quarter X.X% ended XXXX, up communities fourth the for rents XX.X% containing XXXX XXXX quarter. was month, per December

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

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

the pool same-store comprised wholly-owned unconsolidated full units in For X,XXX X,XXX our and our units included XXXX, year joint X,XXX of units ventures.

the X.X% increased the revenue and For increased these same-store to properties, NOI expenses same-store X% prior X.X%, to year. prior year, same-store XXXX compared grew compared

a on subsequent the Greenville, venture million purchased that the a for our Regarding XX% for in Thornblade, portfolio in joint located to in partners. out XXX-unit October, quarter, XX% Crestmont owns Carolina. Bellevue, the the continue to interest sold remaining for In venture XXX-unit transactions during property December, South fourth remaining Louis $X we interest million of property In by wholly-owned properties and $X.X interest execute owns Nashville, two our add unique sale price $XX.X in our buying we of to November, we at underperforming in the St. both that ability Tennessee. multifamily to we In in venture purchased a million. Crossings

aggregate approximately internal over million a first five $XX.X multifamily with the recognize we interest that Also rate to acquire weighted gain venture quarter X.XX%. these on XXX-unit of closing to remaining interest purchases of property and of entered Antonio, at the properties to completion San separate the approximately sold for and in subject units. and Texas a contingent the intend of million The of is completion return of partners' interest is into approximately announced with X,XXX an agreements of average of During price approximately remaining is average XXXX, of X.X rate $XX and assume customary these purchase XX%. a we The purchase a we of million we maturity aggregate $XX will non-recourse debt others. weighted mortgage conditions years no to term and an

growth excited very months, interest extending further are these in assets. our program to the coming about We in our transactions consolidate completing

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

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

to balance Turning sheet. the

XXXX. During floor properties, the be $XX with million annual points the repayment to XX credit of up of feature multifamily subject and accordion bears certain to $XX the conditions of into The interest up allowing up debt company the matures entered and to fourth an used potential quarter, of to secured and an the a working rate uncommitted for we for over million may acquisition – facility amended in an mortgage $XX to borrow X.X% rate interest capital. million to facility a basis prime pursuant

our of this had are of total cash at pursue we $XXX improvements; attractive available and our credit of $XXX and grow will liquidity million to $XX total equivalents; million end quarter provides XX, and pleased of cash million facility. new portfolio. restricted opportunities assets of primarily million, ability up to included equity with stockholder cash that BRT At Available December $XXX under which million, capital $XX.X $X.X for million. We XXXX, enhanced debt total credit facility,

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

down wholly leverage. XX%, as This December XXXX. properties focus Our was to from mortgage we debt of due on XXXX XX% debt XX, to our value was continue XX, December of the at to repayment in enterprise owned part as on

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

on the price on The an $XX.XX BRT. quarterly XX, X, dividend XXXX, X.XX% a our we March year conclusion, per our of Finally annualized of close solid equates In as yield stock of $X.XX to declared was very dividend based share. business XXXX. for XXXX of on March current of

results delivered to excellent grow efforts our portfolio Our financial continue also our and prudently owned while portfolio flexibility. we our wholly enhancing advance to

the has primarily focus, from migratory benefit directly in markets. jobs geographic of Our we the to proven families wave as Southeast to historic these and be successful

am finally the we work That I call. hard to BRT completes entire in ahead our thank I their XXXX, us. dedication. front excited look As for And opportunities about of team and to the want

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

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

You may question. proceed your with

Thanks. Good guys. morning

Good morning.

in have acquisitions? five How on rates? market those that compared Can I comment on question contract. you maybe color acquisitions provide under to JV transactions how current then the are interest some the cap acquisition the the came First to on acquire valuation those have on properties is And those about? you as

good are talking of times so they they about a These bunch understandings There But cases, we understanding where and us an is we Good different have from In can where more buy or these to we there move And then and happened. and partners, partners. BOV from our the them. in do full negotiations, what been less also we think are and sure. conversations conduct about a to if Yes, are value. JV can go morning. where we come times times with particular that's just a ways. different marketing. how do where contracts ahead so. it's There come particular together we've came come necessary Yes, and a to about amongst

so for allows we we're we we market. that beneficial in to executing And in As think we to to better them access do the better Obviously, market, at obviously it's exclusive no of what sort have bit than can venture other us a partners, than what the do and bit to consolidate. a think joint get the pursuers little market. of there's can we

prepared a to Okay. that lower about you your Great. of debt talked was one for balance remarks, in your and on your Jeff few company sheet. goals

you up You delevering have sheet target towards the balance where your as or you so. done expect maybe on your that over provide do sheet? what's some Can to end last year of you balance leverage color progress make or

and would on Sure. it's mortgages-to-enterprise We that and we're do that also carefully. off. I heard a we're say, considering watch investors We value very of loans a on concern do mortgage we have focus a our paying decent other focused that value. We've one quite But bit. debt it's something loan-to-enterprise speaking, and from that generally bit

time done to in And in and we're those on focus to job continue that lower. lowering good stock increases said, As a will like going that. we've I ratios our

So decline see I -- forward. loan-to-enterprise as some the loan equity you in will think we more and the value to move

Okay. Thank taking for my questions. you

Thank you.

the this back call Ladies question-and-answer over we to session. closing and end have gentlemen, today's remarks. Gould Jeffrey to I of for like would turn Mr. reached

to Yes. in everyone attending I thank for We interest appreciate continued this morning. want just your BRT.

you to or and asking Ryan have can further And questions, all to myself. reach your day thank time. just If always for great have you a any out you

conference. This concludes today's

lines may time. the your for Thank You rest Enjoy of your disconnect at this your day. you participation.

you. Thank