BRT Apartments Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>BRT Apartments Corp. has filed its 2023 10-K annual report, detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

BRT Apartments Corp. (BRT) filed a Annual Report (10-K) with the SEC on March 14, 2024. BRT Apartments Corp. filed its annual report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business is real estate investment trusts (SIC code 6798). BRT Apartments Corp. was formerly known as BRT Realty Trust. The company is incorporated in New York.

Why It Matters

For investors and stakeholders tracking BRT Apartments Corp., this filing contains several important signals. This 10-K filing provides a comprehensive overview of BRT Apartments Corp.'s financial health, operational strategies, and risk factors for the past fiscal year, crucial for investors assessing the company's stability and future prospects. As a real estate investment trust, the detailed financial statements and disclosures in this report are essential for understanding the company's asset portfolio, debt structure, and revenue streams within the real estate market.

Risk Assessment

Risk Level: medium — BRT Apartments Corp. shows moderate risk based on this filing. The company's financial performance and strategic decisions are subject to the inherent risks and volatility of the real estate market, as indicated by its SIC code and the nature of its business as a REIT.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess BRT Apartments Corp.'s performance and outlook in the real estate sector.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-14 — Filing Date (Date of submission)
• 6798 — SIC Code (Industry classification)

Key Players & Entities

• BRT Apartments Corp. (company) — Filer
• BRT Realty Trust (company) — Former company name
• Gould Investors LP (company) — Former company name
• New York (location) — State of incorporation

FAQ

Risk Factors

• Real Estate Market Risks [high — market]: The company's operations are subject to the cyclical nature and volatility of the real estate market, which can impact property values, rental income, and occupancy rates.

Industry Context

BRT Apartments Corp. operates within the real estate investment trust sector, focusing on income-generating properties. The company's performance is tied to the broader real estate market conditions.

Regulatory Implications

As a publicly traded company and a REIT, BRT Apartments Corp. is subject to regulations set forth by the SEC and specific tax laws governing REITs.

What Investors Should Do

1. Analyze the detailed financial statements (income statement, balance sheet, cash flow) within the 10-K to understand revenue, expenses, assets, and liabilities.
2. Review the 'Risk Factors' section to identify potential challenges and threats to BRT Apartments Corp.'s business and profitability.
3. Examine any disclosures related to related-party transactions or significant agreements that could impact the company's operations or financial standing.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-14: Filing Date — Date the 10-K was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the core financial and operational data for BRT Apartments Corp. for the fiscal year 2023.)

REIT

Real Estate Investment Trust, a company that owns, operates, or finances income-generating real estate. (Understanding BRT Apartments Corp. as a REIT is key to interpreting its business model and financial reporting.)

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, following previous quarterly and annual filings which would provide comparative data.

Key Financial Figures

• $634.0 million — of 5,420 units and a carrying value of $634.0 million; (ii) have ownership interests, through
• $30.4 million — of our net equity investment therein is $30.4 million; and (iii) own other assets, through co
• $5.6 million — subsidiaries, with a carrying value of $5.6 million. The 28 multi-family properties are loc
• $14.7 m — hare of the (i) gain from this sale was $14.7 million, (ii) related early extinguishmen
• $212,000 — early extinguishment of debt charge was $212,000, and (iii) net proceeds from the sale,
• $19.4 million — yoff of the related mortgage debt, were $19.4 million. In 2023 and 2022, this property accoun
• $54,000 — 3 and 2022, this property accounted for $54,000 and $753,000, respectively, of equity i
• $753,000 — this property accounted for $54,000 and $753,000, respectively, of equity in earnings fr
• $19.0 million — We paid off our credit facility debt of $19.0 million - we accomplished this by using the pro
• $21.2 million — ng the proceeds of new mortgage debt of $21.2 million placed on our Silvana Oaks - North Char
• $14.4 million — gregate purchase price of approximately $14.4 million ( i.e ., an average price per share of
• $18.47 — ( i.e ., an average price per share of $18.47). From January 1, 2024 through March
• $2.3 million — gregate purchase price of approximately $2.3 million ( i.e., average price of $18.43 per sha
• $18.43 — y $2.3 million ( i.e., average price of $18.43 per share). 3 Table of Contents O
• $40 million — in which our equity investment exceeds $40 million. From time-to-time we have pursued dev

Filing Documents

• brt-20231231.htm (10-K) — 2287KB
• exhibit1020123123.htm (EX-10.20) — 37KB
• exhibit211123123.htm (EX-21.1) — 24KB
• exhibit231123123.htm (EX-23.1) — 4KB
• exhibit311123123.htm (EX-31.1) — 8KB
• exhibit312123123.htm (EX-31.2) — 8KB
• exhibit313123123.htm (EX-31.3) — 8KB
• exhibit321123123.htm (EX-32.1) — 5KB
• exhibit322123123.htm (EX-32.2) — 4KB
• exhibit323123123.htm (EX-32.3) — 4KB
• exhibit971.htm (EX-97.1) — 14KB
• exhibit971001.jpg (GRAPHIC) — 240KB
• exhibit971002.jpg (GRAPHIC) — 229KB
• exhibit971003.jpg (GRAPHIC) — 248KB
• exhibit971004.jpg (GRAPHIC) — 211KB
• exhibit971005.jpg (GRAPHIC) — 187KB
• 0000014846-24-000019.txt (&nbsp;) — 13109KB
• brt-20231231.xsd (EX-101.SCH) — 70KB
• brt-20231231_cal.xml (EX-101.CAL) — 94KB
• brt-20231231_def.xml (EX-101.DEF) — 445KB
• brt-20231231_lab.xml (EX-101.LAB) — 796KB
• brt-20231231_pre.xml (EX-101.PRE) — 684KB
• brt-20231231_htm.xml (XML) — 1796KB

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 8 Financial Statements and Supplementary Data 38 9 Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 38 9A.

Controls and Procedures

Controls and Procedures 39 9B. Other Information 39 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections PART III 10 Directors, Executive Officers and Corporate Governance 40 11 Executive Compensation 40 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 40 13 Certain Relationships and Related Transactions, and Director Independence 40 14 Principal Accountant Fees and Services 40 PART IV 15 Exhibits and Financial Statement Schedules 41 16 Form 10-K Summary 44

Signatures

Signatures 45 Table of Contents Explanatory Note Unless otherwise indicated or the context otherwise requires, (i) all references "us", "we", "BRT" or the "Company" refer to BRT Apartments Corp. and its consolidated and unconsolidated subsidiaries; (ii) all interest rates give effect to the related interest rate derivative, if any; (iii) "acquisitions" include investments in unconsolidated joint ventures; (iv) our "significant subsidiaries" (as such term is by Rule 1-02(w) of Regulation S-X, include TRB Holdings LLC, TRB Bells Bluff LLC, which own Bells Bluff, a property located in West Nashville, TN and TRB Civic Center LLC, which owns Civic Center I and II, properties located in Southaven MS, (v) the term "promote" refers to our joint venture partner's share of the income and/or cash flow from a multi-family property greater than that implied by their percentage of equity interest in such project and (vi) "same store properties" refer to properties that we owned and operated for the entirety of periods being compared, except for properties that are in lease-up. We move properties previously excluded from our same store portfolio (because they were in lease up) into the same store designation once they have stabilized (as described below) and such status has been reflected fully in all applicable periods of comparison. Newly constructed, lease-up, development and redevelopment properties are deemed stabilized upon the earlier to occur of the first full calendar quarter beginning (a) 12 months after the property is fully completed and put in service and (b) attainment of at least 90% physical occupancy. Cautionary Statement Regarding Forward-Looking Statements We consider this and other sections of this Annual Report on Form 10-K to contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, with

Properties

Properties Number of Units 2023 Rental and Other Revenues Percent of 2023 Rental and Other Revenues Tennessee 2 702 $ 14,088 15 % Mississippi 2 776 12,184 13 % Alabama 3 740 11,194 12 % Georgia 3 688 10,571 11 % Florida 2 518 9,428 10 % Texas 3 600 9,231 10 % South Carolina 2 474 8,585 9 % Virginia 1 220 4,586 5 % North Carolina 1 264 4,168 5 % Missouri 1 174 3,802 4 % Ohio 1 264 3,751 4 % Other (1) — — 1,481 2 % Total 21 5,420 $ 93,069 100 % __________________ _________ (1) Includes non-multi- family revenues primarily from a commercial property located in Yonkers, NY. The following table sets forth certain information, presented by state, related to properties owned by unconsolidated joint ventures at of December 31, 2023 (dollars in thousands):

Properties

Properties Number of Units 2023 JV Rental and Other Revenues (1) Percent of 2023 JV Rental and Other Revenues (1) Texas 3 1,103 $ 20,977 47 % South Carolina 2 713 13,002 29 % Georgia 1 271 5,153 12 % Alabama 1 200 2,797 6 % Other (2) — — 2,856 6 % Total 7 2,287 $ 44,785 4,478,500,000 % 100 % ___________________________ (1) The term "JV Rental and other Revenues" refers to the revenues generated at multi-family properties owned by unconsolidated joint ventures (2) Includes revenue generated in 2023 from Chatham Court and Reflections which was sold in May 2023. Our Acquisition Process and Underwriting Criteria We identify multi-family property acquisition opportunities primarily through relationships developed with, among others, current or former joint venture partners, real estate investors and brokers. We will acquire multi-family properties with joint venture partners (and especially with partner's experienced in the target market), which allows us to benefit from such partner's experience, or directly ( i.e. , without a joint venture partner) which allows for the (i) possibility for greater returns on our investment and (ii) the consolidation in our financial statements of the accounts and operations of such acquired properties, which investors may find more attractive and understandable than the presentation of information on an unconsolidated basis. We emphasize acquiring the following types of multi-family properties: Class B or better properties with strong and stable cash flows in markets where we believe there exists opportunity for rental growth and further value creation; Class B or better properties that offer significant potential for capital appreciation through repositioning or rehabilitating the asset to drive rental growth; and properties available at opportunistic prices providing an opportunity for a significant appreciation in value. 7 Table of Contents We seek properties that provide stable risk adjusted total retur

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View this 10-K filing on SEC EDGAR