BRT Apartments Corp. (BRT)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024: Net loss of $2.1M (−$0.11 diluted EPS), FFO of $0.28/share, AFFO of $0.37/share; Combined Portfolio NOI down 4.6% year-over-year, reflecting higher insurance, taxes, and repairs expenses in Sunbelt markets .
• Results tracked management’s prior outlook for a muted rent growth environment; quarter-average occupancy was stable at 93.6%, with average monthly rent per occupied unit at $1,405 .
• Dividend maintained at $0.25/share and buyback program extended through December 2026 with authorization increased to $10M, reinforcing capital return discipline; $40M credit facility remained undrawn .
• Near-term narrative catalysts: extension and increase of repurchase program, pursuit of 13% preferred equity financings, and insurance expense expected to decline in 2025; offset by continued supply pressure on leasing economics until 2026 .

What Went Well and What Went Wrong

What Went Well

• “The operational environment in BRT’s Combined Portfolio is expected to be consistent with other Sunbelt-focused operators…BRT intends to emphasize stable average occupancy within the portfolio until it can achieve a lift in rental rates.” Management highlighted disciplined occupancy focus and stable operations amid supply headwinds .
• “Controllable expense growth is expected to grow modestly compared to 2024 and insurance expense is expected to decline.” Expense mitigation and anticipated insurance relief in 2025 support margin stabilization .
• Capital allocation: extension/increase of buyback to $10M through 2026; undrawn $40M credit facility; additional preferred equity opportunities at ~13% all-in returns provide accretive capital deployment optionality .

What Went Wrong

• Combined Portfolio NOI declined 4.6% YoY in Q4; annual Combined NOI dipped 0.2% YoY, reflecting persistent cost pressures and mixed rent dynamics across markets .
• Expense inflation: Q4 YoY insurance +11.4%, real estate taxes +8.2%, utilities +8.5%, repairs & maintenance +33.4%, pressuring same-store NOI despite largely stable occupancy .
• Continued GAAP net losses (−$2.1M; −$0.11 diluted EPS) as interest expense and depreciation offset modest revenue growth; equity income from JVs remained modest amid lease-up drag and higher JV interest expenses .

Financial Results

Consolidated Results vs prior quarters

Consensus vs Actual (S&P Global)

Values retrieved from S&P Global.*

Segment/Geography (Top Consolidated NOI contributors – Q4)

KPIs

Guidance Changes

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was available in our document set; themes reflect management’s supplemental and press releases.

Management Commentary

• “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 as the new supply is absorbed.”
• “BRT intends to emphasize stable average occupancy within the portfolio until it can achieve a lift in rental rates.”
• “Controllable expense growth is expected to grow modestly compared to 2024 and insurance expense is expected to decline.”
• “The Board of Directors approved an extension of the share repurchase program through December 2026 and increased the value of the shares to be repurchased to $10 million.”
• “The Company expects to pursue additional Preferred Equity financing opportunities…like the Charlestowne Apartments and The Reserve at Beaumont Oaks transactions done in 2024.”

Q&A Highlights

No Q4 2024 earnings call transcript was available in our document catalog; no Q&A details to report.

Estimates Context

• EPS beat: −$0.11 actual vs −$0.12 consensus; Revenue essentially in line: $24.627M actual vs $24.649M consensus. Small beat on EPS is consistent with stabilized occupancy and lower-than-feared expenses, while revenue tracked close to expectations amid muted rent growth. Values retrieved from S&P Global.*

Key Takeaways for Investors

• Occupancy stable, rents largely flat: management is prioritizing stabilization over pricing until supply is absorbed, likely pushing meaningful rent growth to 2026 .
• Expense normalization tailwind: insurance expense expected to decline in 2025; controllable costs guided to modest growth—constructive for NOI margins after Q4 pressure from insurance/R&M .
• Capital returns strengthened: buyback authorization increased to $10M through 2026; dividend maintained at $0.25/share—supporting total return while growth is muted .
• Flexible balance sheet: undrawn $40M revolver, no maturities until Q3 2025; DSCR at 2.09 in Q4 indicates improved coverage vs prior quarters .
• Preferred equity pipeline: 13% all-in return structures provide incremental income streams without direct asset ownership, potentially smoothing earnings through supply-heavy periods .
• State mix matters: highest NOI contributions in TN and MS; portfolio execution and expense control in those markets are key to sustaining cash flows .
• Near-term trading lens: narrative skewed toward defensive occupancy and expense tailwinds; buyback/insurance decline are positive catalysts, while persistent supply will cap rent-driven upside until the absorption inflection in 2026 .

Citations: Q4 2024 8-K Supplemental and exhibits ; Q3 2024 8-K Supplemental ; Q2 2024 8-K Supplemental ; Dividend/buyback press releases .