BRT Apartments Corp. Enters New Loan Agreement

TL;DR

BRT just signed a new loan agreement, more debt incoming.

AI Summary

On July 12, 2024, BRT Apartments Corp. entered into a material definitive agreement, specifically a loan agreement with an undisclosed lender. This agreement creates a direct financial obligation for the company, the details of which are not fully disclosed in this initial filing.

Why It Matters

This filing indicates BRT Apartments Corp. is taking on new debt, which could impact its financial leverage and future investment capacity.

Risk Assessment

Risk Level: medium — The filing indicates a new material definitive agreement and a direct financial obligation, suggesting potential changes in the company's debt structure and financial commitments.

Key Players & Entities

• BRT Apartments Corp. (company) — Registrant
• July 12, 2024 (date) — Date of earliest event reported
• 60 Cutter Mill Road (location) — Business Address

FAQ

Key Financial Figures

• $20 million — amount available under the facility by $20 million (i.e., from $60 million to $40 million)
• $60 million — the facility by $20 million (i.e., from $60 million to $40 million). The Amendment (i) modi
• $40 million — $20 million (i.e., from $60 million to $40 million). The Amendment (i) modified several of
• $28 million — connection with obtaining approximately $28 million of seven-year mortgage debt (the "Finan
• $317,000 — lender aggregate fees of approximately $317,000. We can provide no assurance that the

Filing Documents

• brt-20240712.htm (8-K) — 30KB
• exhibit101july2024.htm (EX-10.1) — 49KB
• 0000014846-24-000041.txt ( ) — 212KB
• brt-20240712.xsd (EX-101.SCH) — 2KB
• brt-20240712_lab.xml (EX-101.LAB) — 22KB
• brt-20240712_pre.xml (EX-101.PRE) — 13KB
• brt-20240712_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement The information set forth in Item 2.03 is incorporated herein by this reference.

03 Creation of a Direct Financial Obligation or an Obligation under an Off- Balance Sheet

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off- Balance Sheet Arrangement of a Registrant. On July 12, 2024, we and VNB New York, LLC (the "Lender") entered into the third amendment dated July 9, 2024 (the "Amendment") to the Amended and Restated Loan Agreement made as of November 18, 2021, as amended, by and between us and the Lender (the "Initial Credit Facility"; the Initial Credit Facility as amended by the Amendment, the "Credit Facility"). The Amendment extended the maturity of the facility by two years (i.e., from September 2025 to September 2027) and reduced the amount available under the facility by $20 million (i.e., from $60 million to $40 million). The Amendment (i) modified several of the covenants under the facility to, among other things, reflect the reduced availability under the facility and (ii) increased the number of wholly-owned properties we are required to own from five properties to ten properties (we currently wholly-own 21 properties). As of July 12, 2024, we are able to borrow $40 million pursuant to the facility. We reduced the amount available under the facility in connection with obtaining approximately $28 million of seven-year mortgage debt (the "Financing") on our Woodland Trails – LaGrange, Georgia property. We anticipate that the Financing will be completed in August 2024, will bear a fixed interest rate of 5.22%, and will be interest only until maturity in 2031. We anticipate using the proceeds from the Financing to invest in multi-family property opportunities and for general corporate purposes (which may include repurchases of our common stock). Such proceeds will be invested initially in short-term US Treasury securities until they are applied. In connection with the Amendment, we paid the lender aggregate fees of approximately $317,000. We can provide no assurance that the Financing will be obtained or that if obtained, that we will invest the proceeds therefrom in accretive/profitable

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. In reviewing the Amendment included as exhibit 10.1 to this Current Report on Form 8-K, please remember it is included to provide you with information regarding its terms and is not intended to provide any other factual or disclosure information about us or the other party to the agreement. The agreement contains representations and warranties by one or more of the parties thereto. These representations and warranties have been made solely for the benefit of the other party to the agreement and: should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; have been qualified by disclosures that were made to the other party in connection with the negotiation of the agreement, which disclosures are not necessarily reflected in the agreement; may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and are subject to more recent developments. Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. Exhibit No. Description 10.1 Third amendment dated as of July 9, 2024 to the Amended and Restated Loan Agreement made as of November 18, 2021, as amended, by and between us and VNB New York, LLC. 101 Cover Page Interactive Data File - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. 104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BRT APARTMENTS CORP. July 15, 2024 /s/ George Zweier

View Full Filing

View this 8-K filing on SEC EDGAR