Executive Summary

Q3 2025 results were steady operationally with modest top-line growth: total revenues rose to $24.43M and combined portfolio NOI was $15.33M; however GAAP net loss widened to $2.71M and diluted loss per share held at $(0.14) .
EPS and revenue slightly beat Wall Street consensus: EPS of $(0.14) vs $(0.15), revenue of $24.36M vs $23.95M; estimate coverage was thin (2 EPS, 3 revenue) which can magnify perceived surprises*.
FFO and AFFO per diluted share were resilient at $0.28 and $0.36, respectively, with AFFO flat and FFO down 1c sequentially .
Strategic activity continued: two JV acquisitions (Auburn, AL; Savannah, GA), a mortgage refinancing (San Marcos, TX), and an active buyback authorization ($8.75M remaining) with intent to pay down the credit facility by year-end 2025 .
Potential catalysts: execution on planned credit facility paydown, occupancy stabilization + rent growth trajectory into 2026, and integration/ROI from recent acquisitions .

What Went Well and What Went Wrong

What Went Well

AFFO per diluted share held at $0.36, supporting dividend coverage and near-term cash flow stability .
Operational KPIs remained healthy: combined portfolio occupancy 94.5% and weighted average rent per occupied unit $1,414; combined revenues up slightly YoY and QoQ .
Strategic acquisitions support Sunbelt focus and AFFO/NAV growth goals; CEO: “we are taking another strong step in implementing our strategy… finding opportunities… that will drive AFFO and NAV per share growth” (re: Oaks at Victory) .

What Went Wrong

GAAP net loss widened YoY to $2.71M and equity in earnings of unconsolidated JVs swung to a small loss of $75K in Q3 (vs +$369K YoY), reflecting depreciation and financing costs burdening GAAP results .
Same-store NOI declined YoY on a combined basis (Q3: $15.335M vs $15.662M, -2.1%), with Texas consolidated NOI notably weaker YoY amid lower rents/occupancy .
Interest expense increased to $5.88M (+$0.14M YoY), contributing to GAAP loss despite steady operating income .

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025
Total Revenues ($USD)	$24.106M	$24.197M	$24.434M
Net Loss ($USD)	$(2.352)M	$(2.566)M	$(2.707)M
Diluted EPS ($USD)	$(0.12)	$(0.14)	$(0.14)
FFO per diluted share ($USD)	$0.30	$0.29	$0.28
AFFO per diluted share ($USD)	$0.39	$0.36	$0.36

KPI (Combined Portfolio)	Q3 2024	Q2 2025	Q3 2025
Combined Revenues ($USD)	$29.389M	$28.817M	$29.218M
Total Combined Operating Income ($USD)	$15.662M	$15.100M	$15.335M
Weighted Avg Occupancy (%)	94.4%	94.1%	94.7%
Weighted Avg Rent per Occupied Unit ($USD)	$1,363	$1,358	$1,367

Estimates vs Actual (Q3 2025)	Consensus*	Actual*	Surprise*
Primary EPS ($USD)	$(0.15)	$(0.14)	+$0.01 (Beat)
Revenue ($USD)	$23.951M	$24.359M	+$0.408M (Beat)
# of Estimates (EPS / Revenue)	2 / 3	—	—

Values retrieved from S&P Global.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q3 2025	$0.25 (Q2 declared)	$0.25 (Q3 declared)	Maintained
Credit facility balance plan	YE 2025	Not previously specified	Expect all outstanding credit facility debt to be paid off by end of 2025	New qualitative target
Share repurchase authorization	As of Oct 31, 2025	$8.752M available (Aug 1)	$8.752M available	Maintained
Debt refinancing (Parkway Grande)	Sept 2025	$15.375M @ 4.42% maturing	$15.776M @ 5.09%, interest-only for 5 years, matures Oct 2032	Executed (balance sheet action)

No formal quantitative guidance for revenue, margins, OpEx, OI&E, or tax rate was provided in Q3 materials .

Earnings Call Themes & Trends

Note: No Q3 2025 earnings call transcript was available in our document catalog during the review window (Nov 20, 2025), so commentary reflects management’s supplemental/press releases for Q1–Q3.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period	Trend
Sunbelt supply and rent growth outlook	Q1: New supply expected to mute rent growth until 2026; focus on occupancy stabilization	Reiterated portfolio stabilization focus; acquires in growing Southeastern markets	Consistent; positioning for 2026 rent lift
Occupancy management	Q1/Q2 stable combined occupancy 93.7–94.1%	Combined occupancy 94.5% in Q3	Improving slightly
Insurance expense trajectory	Q1: Insurance expected to decline in 2025	Insurance costs down YoY in combined metrics (Q3 and YTD)	Favorable
Capital allocation (acquisitions/buybacks)	Q1 buybacks; Q2 acquired 1322 North (Auburn, AL)	Q3 acquired Oaks at Victory (Savannah, GA); buyback authorization unchanged	Active, Sunbelt-focused
Balance sheet and liquidity	Q1: No maturities until Q3 2025; full credit facility availability	Refinanced Parkway Grande; expect credit facility paydown by YE 2025	De-risking maturities; liquidity management

Management Commentary

“Earlier this year, we acquired 1322 North in Auburn, Alabama, and with the purchase of Oaks at Victory, we are taking another strong step in implementing our strategy of investing in properties in the Southeast… Our goal is to create stockholder value by finding opportunities… that will drive AFFO and NAV per share growth and seamlessly integrate with our existing portfolio.” — Jeffrey A. Gould, President & CEO .
“Maintained revolving credit facility of up to $40.0 million… $17.5 million outstanding as of October 31, 2025… The Company expects all outstanding debt on its credit facility to be paid off by the end of 2025.” — Q3 supplemental highlights .
Full year 2025 outlook focus (Q1): “The operational environment… is expected to be consistent with other Sunbelt-focused operators with new supply muting new and renewal lease rent growth until 2026… BRT intends to emphasize stable average occupancy… insurance expense is expected to decline.” .

Q&A Highlights

No earnings call transcript was available for Q3 2025 in our source set; therefore, Q&A themes and guidance clarifications cannot be assessed at this time (searched earnings-call-transcript documents for BRT and found none in the period) [ListDocuments: earnings-call-transcript returned 0 for BRT across Q3 window].

Estimates Context

Q3 EPS and revenue were modest beats versus consensus, but estimate depth was limited (2 EPS, 3 revenue), which can amplify perceived surprise. Post-Q3, estimate revisions may focus on: steady AFFO trajectory, occupancy gains, insurance cost moderation, and integration of acquisitions supporting 2026 rent growth normalization .
S&P Global consensus: EPS $(0.15)* vs actual $(0.14); revenue $23.95M vs actual $24.36M*; both beats were incremental.*
Values retrieved from S&P Global.*

Key Takeaways for Investors

Cash-flow resilience: AFFO/diluted share held at $0.36 in Q3, aligning with a maintained $0.25 dividend per share; coverage appears intact if operations remain stable .
Operating stability with slight improvement: Combined occupancy ticked up to 94.7% and weighted average rent per occupied unit rose modestly; same-store combined NOI declined YoY but improved sequentially vs Q2 .
Sunbelt growth strategy: Two JV acquisitions (Auburn, AL; Savannah, GA) add scale in target markets; management explicitly targeting AFFO and NAV per share growth via such deals .
Balance sheet progress: Parkway Grande refinancing extended term with 5 years interest-only; company expects credit facility paydown by YE 2025, reducing floating-rate exposure .
Watch Texas performance: Consolidated Texas NOI was weaker YoY, tied to lower rents/occupancy; improvements here could materially aid same-store trends .
Limited estimate coverage and modest beats suggest muted immediate reaction; catalysts include execution on credit facility paydown and realization of value-add returns to drive 2026 rent growth normalization .
Governance/people: CFO transition announced with Isaac Kalish set to assume role in early 2026; continuity and experience may aid execution .

Appendix: Additional Data Points and Disclosures

Q3 Revenues detail: Rental and other property revenue $24.03M; total revenues $24.43M; operating expenses $11.34M; interest expense $5.88M; G&A $3.94M; D&A $6.62M .
FFO/AFFO reconciliations: NAREIT FFO attributable $5.215M; AFFO $6.737M; diluted FFO $0.28; diluted AFFO $0.36 .
Debt summary: Consolidated mortgages $443.8M; credit facility $17.5M; junior subordinated notes $37.18M; combined weighted average interest rate ~4.11%; DSCR 1.50x (Q3) .
Buybacks: 142,080 shares repurchased YTD through Q2; no repurchases in Q3; $8.75M remaining authorization .
Press releases: Filed Q3 10-Q; dividend declared; acquisition of Oaks at Victory (Savannah, GA) .

BRT Apartments Corp. (BRT)·Q3 2025 Earnings Summary