Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - BRT Apartments Corp. | exhibit991q22017.htm |
| 8-K - 8-K - BRT Apartments Corp. | a8-kxq22017.htm |
Supplemental Information
Quarter Ended March 31, 2017
A NATIONAL MULTI-FAMILY EQUITY REIT
SERVING OUR CUSTOMERS FOR OVER 35 YEARS
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Table of Contents
Description Page #
Table of Contents 2
Disclosure 3
Company Profile 4
Market Information, Per Share Data and Portfolio Data 5
Consolidated Balance Sheets 6
Consolidated Statements of Operations 7
Acquisitions and Sales 8
FFO/AFFO 9
Debt Information 10
Portfolio Summary Data 11
Net Operating Income - Quarterly 13
Net Operating Income – Prior Fiscal Year 14
Reconciliation of Net (Loss) Income to Net Operating
Income
15
Definitions 16
The information presented herein speaks only as of the date or periods indicated, and we do not undertake any
obligation, and disclaim any duty, to update any of this information. Our future financial performance is subject
to various risks and uncertainties that could cause actual results to differ materially from expectations. The
factors that could affect our future financial results are discussed more fully in our reports on Form 10-K, Form
10-Q, and Form 8-K filed with the SEC and in particular, the sections of such reports identified as “Risk Factors”.
Readers are advised to refer to these reports for additional information concerning our activities.
3
Disclosure
We are an internally managed real estate investment trust, also known as a REIT, that is primarily focused
on the ownership, operation and development of multi-family properties. These activities are primarily
conducted through joint ventures in which we typically have an 80% equity interest in the entity owning
the property.
At March 31, 2017, we own 32 multi-family properties (four of which are wholly owned), located in 11
states with an aggregate of 8,805 units, including a 271 unit multi-family property in lease up. Most of our
properties are located in the Southeast United States and Texas. We commenced our multi-family activities
in March 2012.
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Company Profile
2017 2016 2016 2015 2014
Market Information
Market capitalization 116,677,054$ 97,115,867$ 111,190,680$ 99,976,487$ 107,273,903$
Shares outstanding 14,040,560 13,973,506 13,898,835 14,101,056 14,303,187
Closing share price 8.31$ 6.95$ 8.00$ 7.09$ 7.50$
Portfolio
Multi family properties owned 32 31 33 28 27
Units 8,805 8,793 9,420 8,300 7,609
Average occupancy (1) 93.3% 92.1% 92.8% 94.5% 94.0%
Average total revenue per occupied unit (1) 906$ 861$ 852$ 810$ 785$
2017
(Unaudited)
2016
(Unaudited) 2016 2015 2014
Per Share Data
Earnings per share (basic and diluted) (0.30)$ 1.76$ 2.23$ (0.17)$ (0.66)$
FFO per common share (2) (3) 0.12$ 0.15$ 0.47$ 0.24$ 0.16$
AFFO per common share (2) (4) 0.16$ 0.25$ 0.78$ 0.36$ 0.28$
(1) Weighted average rent and occupancy excludes property in lease up.
(3) The decrease in FFO is due to the recognition, in 2016 quarter, of deferred interest income from the Newark Joint Venture of $1.9 million, or $0.14 per diluted
share, offset primarily by $953,000, or $0.07 per diluted share, of property acquisition costs expensed in the 2016 quarter.
(4) AFFO decreased due primarily to the add-back, in the 2016 quarter, of the $2.7 million loss on extinguishment of debt incurred in connection with profitable
property sales, of which $1.6 million, or $0.11 per share, was allocable to non-controlling interests.
As of March 31, Fiscal Year ended September 30,
Quarter ended March 31, Year ended September 30,
(2) See the reconciliation of Funds From Operations and Adjusted Funds From Operations to net (loss) income, as in accordance with GAAP, at page 9, and
definitions of such terms at page 16.
Market Information, Per Share Data, and Portfolio Data
5
2016 2015 2014
Assets
Real estate properties, net of accumulated depreciation 781,114$ 759,576$ 591,727$ 635,612$
Real estate loan 5,900 19,500 - -
Cash and cash equivalents 43,147 27,399 15,556 23,181
Restricted cash 6,619 7,383 6,518 32,390
Deposits and escrows 13,101 18,972 12,782 12,273
Investment in unconsolidated joint ventures 14,557 298 - -
Other Assets 6,082 7,775 6,882 29,147
Assets of discontinued operations - - 163,545 2,017
Real estate properties held for sale - 33,996 23,859 -
Total Assets 870,520$ 874,899$ 820,869$ 734,620$
Liabilities and equity
Liabilities
Mortgage payable, net of deferred costs 603,133$ 588,457$ 451,159$ 482,406$
Junior subordinated ntoes, net of deferred costs 37,008 36,998 36,978 37,400
Accounts payable and accrued liabilities 13,467 20,716 14,780 15,185
Liabilities of discontinued operations - - 138,530 30,990
Mortgage payable held for sale - 27,052 19,248 -
Total liabilities 653,608 673,223 660,695 565,981
Equity
134 - - -
Shares of beneficial interest - 39,696 40,285 40,965
Additional paid in capital 201,546 161,321 161,842 166,209
Accumulated other comprehensive income 1,518 (1,602) (58) (8)
Accumulated deficit (36,584) (48,125) (79,414) (77,026)
Total BRT Apartments Corp. stockholders' equity 166,614 151,290 122,655 130,140
Non-controlling interests 50,298 50,386 37,519 38,499
Total Equity 216,912 201,676 160,174 168,639
Total Liabilities and Equity 870,520$ 874,899$ 820,869$ 734,620$
March 31 September 30,
2017
(Unaudited)
Common Stock, $.01 par value, 300,000 shares
authorized; 13,352 shares issued at March 31, 2017
Consolidated Balance Sheets
(Dollars in Thousands)
6
2017
(Unaudited)
2016
(Unaudited) 2016 2015 2014
Revenues
Rental and other revenue from real estate properties 24,702$ 23,993$ 90,945$ 77,023$ 61,725$
Other Income 181 2,026 3,319 72 88
Total Revenues 24,883 26,019 94,264 77,095 61,813
Expenses
Real estate operating expenses 11,909 12,097 43,262 38,609 32,984
Interest expense 6,402 6,049 23,878 19,297 16,434
Advisor's fees, related party - - 693 2,448 1,801
Property acquisition costs (A) - 953 3,852 1,885 2,542
General and administrative 2,390 2,280 8,536 6,683 6,324
Depreciation 7,772 5,632 23,180 18,454 13,945
Total Expenses 28,473 27,011 103,401 87,376 74,030
Total revenues less total expenses (3,590) (992) (9,137) (10,281) (12,217)
Gain on sale of real estate - 24,226 46,477 15,005 -
Gain on sale of partnership interest - - 386 - -
Loss on extinguishment of debt - (2,668) (4,547) - -
(Loss) Income from continuing operations (3,590) 20,566 33,179 4,724 (12,217)
Provision for taxes 1,108 - 700 - -
(Loss) income from continuing operations, net of taxes (4,698) 20,566 32,479 4,724 (12,217)
Discontinued operations:
Loss from discontinued operations - (1,188) (2,788) (6,329) (3,949)
Gain on sale of partnership interest - 15,467 15,467 - -
Income (loss) from discontinued operations - 14,279 12,679 (6,329) (3,949)
Net (Loss) income (4,698) 34,845 45,158 (1,605) (16,166)
(Loss) income attributable to non-controlling interests 469 (9,909) (13,869) (783) 6,712
Net (Loss) income attributable to common shareholders (4,229)$ 24,936$ 31,289$ (2,388)$ (9,454)$
Fiscal Year ended September 30,Quarter ended March 31,
Consolidated Statements of Operations
(Dollars in Thousands)
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Acquisitions
Location
Purchase
Date No. of Units
Contract
Purchase Price
Acquisition
Mortgage Debt Initial BRT Equity
Ownership
Percentage
Capitalized
Acquisition
Costs
St. Louis, MO 2/28/2017 53 8,000$ 6,200$ 2,002$ 75.5% 134$
St. Louis, MO 2/28/2017 128 27,000 20,000 6,001 75.5% 423
181 35,000$ 26,200$ 8,003$ 557$
Acquisition subsequent to March 31, 2017
Location
Purchase
Date No. of Units
Contract
Purchase Price
Acquisition
Mortgage Debt Initial BRT Equity
Ownership
Percentage
Capitalized
Acquisition
Costs
Creve Coeur, MO 4/4/2017 174 39,600$ 29,000$ 9,408$ 78.0% 567$
Dispositions
There were no dispositions during and subsequent to the quarter ended March 31, 2017
Acquisitions and Sales – Quarter ended March 31, 2017
(Dollars in Thousands)
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2017
(Unaudited)
2016
(Unaudited) 2016 2015 2014
GAAP Net (loss) income attributable to common stockholders (4,229)$ 24,936$ 31,289$ (2,388)$ (9,454)$
Add: depreciation of properties 7,772 6,104 24,329 20,681 15,562
Add: our share of depreciation in unconsoliated joint ventures 130 5 20 20 20
Add: amortization of deferred leasing costs - 1 15 71 62
Deduct: gain on sales of real estate and partnership interests - (39,693) (62,329) (15,005) -
Adjustment for non-controlling interest (1,923) 10,823 13,319 221 (4,012)
Funds from operations (FFO) attributable to 1,750 2,176 6,643 3,600 2,178
common stockholders
Adjust for: straight line rent accruals (14) (67) (200) (411) (542)
Add: loss on extinguishment of debt - 2,668 4,547 - -
Add: amortization of restricted stock and RSU expense 386 188 1,005 906 805
Add: amortization of deferred mortgage costs 224 483 1,645 2,242 1,825
Adjustment for non-controlling interest (44) (1,677) (2,729) (703) (424)
Adjusted funds from operations (AFFO) 2,302$ 3,771$ 10,911$ 5,634$ 3,842$
attributable to common stockholders
Per Share data
Net (loss) income attributable to common stockholders (0.30)$ 1.76$ 2.23$ (0.17)$ (0.66)$
Add: depreciation of properties 0.55 0.43 1.74 1.46 1.10
Add: our share of depreciation in unconsoliated joint ventures 0.01 - - - -
Add: amortization of deferred leasing costs - - - - -
Deduct: gain on sales of real estate and partnership interests - (2.81) (4.45) (1.07) -
Adjustment for non-controlling interest (0.14) 0.77 0.95 0.02 (0.28)
Funds from operations (FFO) attributable to 0.12 0.15 0.47 0.24 0.16
common stockholders
Adjust for: straight line rent accruals - (0.01) (0.01) (0.04) (0.04)
Add: loss on extinguishment of debt - 0.19 0.32 - -
Add: amortization of restricted stock and RSU expense 0.03 0.01 0.07 0.07 0.06
Add: amortization of deferred mortgage costs 0.02 0.03 0.12 0.16 0.13
Adjustment for non-controlling interest (0.01) (0.12) (0.19) (0.07) (0.03)
Adjusted funds from operations (AFFO) 0.16$ 0.25$ 0.78$ 0.36$ 0.28$
attributable to common stockholders
Refer to page 5 for footnotes 3 and 4 regarding changes in FFO and AFFO for the quarters ending March 31, 2017 and 2016.
Quarter Ended March 31, Fiscal Year ended September 30,
Funds From Operations/Adjusted Funds From Operations
(Dollars in Thousands, except per share amounts)
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10
Debt Information at March 31, 2017
(Dollars in Thousands)
Mortgage Debt
Year
Total
Principal
Payments
Scheduled
Amortization
Principal
Payments Due
at Maturity
Weighted
Average
Interest
Rate (a)
2017 2,845$ 2,845$ - -
2018 6,231 6,231 - -
2019 75,907 6,394 69,513$ 4.10%
2020 57,666 11,537 46,129 3.08%
2021 22,000 7,998 14,002 4.29%
Thereafter 443,780 40,038 403,742 4.19%
Total 608,429$ 75,043$ 533,386$ 4.09%
(a) Weighted average relating only to balloon payments due at maturity date.
Weighted Average Remaining Term to Maturity 7.8 years
Weighted Average Interest Rate 4.46%
Debt Service Coverage Ratio (1) 1.39
(1) Calculated as Net Operating Income divided by Total Debt Service. See the reconciliation of
Funds From Operations and Adjusted Funds From Operations to net (loss) income, as in
accordance with GAAP, at page 9 and definitions of such terms at page 16.
Junior Subordinated Notes
Principal Balance 37,400$
Interest Rate 3 month LIBOR + 2.00%
Maturity April 30, 2036
Portfolio Summary
State
Number of
Properties
Number of
Units
Average quarterly rent
per occupied unit
Average quarterly
occupancy
Texas 11 2,750 916$ 92%
Georgia 4 959 917 94%
Florida 3 1,026 1,153 93%
South Carolina 3 683 992 (1) 95% (1)
Alabama 2 826 725 95%
Missippippi 2 776 852 95%
Tennessee 1 300 1,072 98%
Missouri 3 601 889 92%
Indiana 1 400 635 92%
Ohio 1 264 796 97%
Virginia 1 220 957 94%
Total / Weighted Average 32 8,805 900$ 94%
(1) Weighted average rent and occupancy excludes a 271 unit property in lease up
At March 31, 2017 For the Quarter Ended March 31, 2017
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12
Portfolio Summary For the Quarter Ended March 31, 2017
-
200
400
600
800
1,000
1,200
Average quarterly rent per occupied
unit
Average quarterly rent per
occupied unit
Note: South Carolina quarterly occupancy excludes a 271 unit property in lease-up stage
0.00%
50.00%
100.00%
Average Quarterly Occupancy
per unit
Average quarterly
occupancy
Quarter ended March 31, 2017
(Unaudited)
REVENUES EXPENSES
NET OPERATING
INCOME
Texas 7,794$ 4,385$ 3,409$
Florida 3,698 1,644 2,054
Georgia 2,745 1,273 1,472
South Carolina 1,363 739 624
Tennessee 994 399 595
Missouri 1,374 631 743
Indiana 836 493 343
Mississippi 2,040 808 1,232
Ohio 672 252 420
Alabama 1,932 871 1,061
Virginia 869 255 614
Other - non multi family 385 159 226
Total 24,702$ 11,909$ 12,793$
See Reconciliation of Net (Loss) Income to Net Operating Income at page 15
Net Operating Income – Quarterly
(Dollars in Thousands)
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Revenues Expenses
Net Operating
Income
Texas 23,827$ 12,158$ 11,669$
Florida 15,652 7,197 8,455
Georgia 10,706 4,422 6,284
South Carolina 6,613 2,973 3,640
Tennessee 9,735 5,653 4,082
Missouri 3,854 1,672 2,182
Indiana 3,152 1,588 1,564
Kansas 3,132 1,325 1,807
Mississippi 2,679 956 1,723
Ohio 2,440 1,088 1,352
Arkansas 783 435 348
Alabama 6,966 3,199 3,767
Other - non multi family 1,406 596 810
Total 90,945$ 43,262$ 47,683$
See Reconciliation of GAAP Net (Loss) Income to Net Operating Income at page 15
Year ended September 30, 2016
Net Operating Income - Prior Fiscal Year
(Dollars in Thousands)
14
We define NOI as total property revenues less total property expenses. Other REIT’s may use different methodologies for calculating
NOI, and accordingly, our NOI may not be comparable to other REIT’s. We believe that this measure provides an operating
perspective not immediately apparent from GAAP operating income or net (loss) income. We use NOI to evaluate our performance
because NOI measures the core operations of property performance by excluding corporate level expenses and other items not related
to property operating performance and captures trends in rental housing and property operating expenses. However, NOI should only
be used as an alternative measure of our financial performance.
The following table reflects NOI together with a reconciliation of NOI to net income attributable to common stock
holders as computed in accordance with GAAP for the periods presented:
15
Reconciliation of Net (Loss) Income to Net Operating
Income (Dollars in Thousands)
Quarter Ended
March 31, 2017
(Unaudited)
Year Ended
September 30,
2016
GAAP Net (loss) income attributable to common stockholders (4,229)$ 31,289$
Less: Other Income (181) (3,319)
Add: Interest expense 6,402 23,878
Advisor's fees, related party - 693
Property acquisition costs - 3,852
General and administrative 2,390 8,536
Depreciation 7,772 23,180
Less: Gain on sale of real estate - (46,477)
Gain on sale of partnership interest - (386)
Add: Loss on extinguishment of debt - 4,547
Provision for taxes 1,108 700
Discontinued operations:
Lo s from discontinued operations - 2,788
Less: Gain on sale of partnership interest - (15,467)
Net loss (income) attributable to non-controlling interests (469) 13,869
Net Operating Income 12,793$ 47,683$
Definitions
Funds from Operations (FFO)
FFO is a non-GAAP financial performance measure defined by the National Association of Real Estate Investment Trusts and is
widely recognized by investors and analysts as one measure of operating performance of a REIT. The FFO calculation excludes
items such as real estate depreciation and amortization, gains and losses on the sale of real estate assets and impairment on
depreciable assets. Historical accounting convention used for real estate assets requires straight-line depreciation of buildings and
improvements, which implies that the value of real estate assets diminishes predictably over time. Since real estate values have
historically risen or fallen with market conditions, it is management’s view, and we believe the view of many industry investors and
analysts, that the presentation of operating results for a REIT using the historical accounting for depreciation is insufficient. FFO
excludes gains and losses from the sale of real estate, which we believe provides management and investors with a helpful
additional measure of the performance of our real estate portfolio, as it allows for comparisons, year to year, that reflect the
impact on operations from trends in items such as occupancy rates, rental rates, operating costs, general, administrative and
other expenses, and interest expenses.
Adjusted Funds from Operations (AFFO)
AFFO, as defined by us, excludes from FFO straight line rent adjustments, loss on extinguishment of debt, amortization of
restricted stock and RSU expense and amortization of deferred mortgage costs. Management believes that excluding acquisition-
related expenses from AFFO provides investors with supplemental performance information that is consistent with the
performance models and analysis used by management and provides investors a view of the performance of our portfolio over
time, including after the time we cease to acquire properties on a frequent and regular basis. We believe that AFFO enables
investors to compare the performance of our portfolio with other REITs that have not recently engaged in acquisitions, as well as a
comparison of our performance with that of other non-traded REITs, as AFFO, or an equivalent measure is routinely reported by
non-traded REITs, and we believe often used by analysts and investors for comparison purposes.
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