Breaking Down BRT Apartments Corp. (BRT) Financial Health: Key Insights for Investors

As an investor, are you keen on understanding the financial stability and growth potential of real estate investment trusts (REITs)? Have you been keeping tabs on BRT Apartments Corp. and wondering about their recent performance? For the fiscal year ending December 31, 2024, BRT reported a revenue of $95.63 million, a carrying value of $614.2 million for its wholly-owned properties, and $31.3 million for ownership interests in unconsolidated entities. With a weighted average annual interest rate of 4.09% on its fixed-rate mortgage debt and strategic investments in multi-family properties, let's explore what these figures mean for BRT's financial health and future prospects.

BRT Apartments Corp. (BRT) Revenue Analysis

Understanding BRT Apartments Corp.'s (BRT) revenue streams involves examining the sources of their income, how these have changed over time, and the relative importance of each segment to their overall financial performance. Here's a breakdown to provide key insights for investors:

BRT Apartments Corp. primarily generates revenue through:

• Rental Income: This is derived from leasing apartments in their properties.
• Other Property Income: This may include fees for services like parking, amenities, and other tenant charges.

Analyzing the year-over-year revenue growth rate provides insights into BRT's operational performance and market conditions. While specific recent percentage increases or decreases would be available in their latest financial reports, examining historical trends helps understand their growth trajectory. Consider these factors:

• Historical Trends: Reviewing several years of revenue data shows whether BRT has consistently grown, experienced fluctuations, or faced declines.
• Percentage Increase/Decrease: This metric indicates the rate at which revenue is changing, highlighting periods of strong growth or potential challenges.

To understand the contribution of different business segments to BRT's overall revenue, it's essential to consider how the company categorizes its operations. Typically, this would involve assessing:

• Geographic Regions: Revenue may be broken down by the geographic location of properties, showing which markets are most profitable.
• Property Types: Different types of apartment properties (e.g., luxury, mid-range, affordable) may contribute varying amounts to the total revenue.

Significant changes in revenue streams can indicate strategic shifts, market impacts, or operational adjustments. Keep an eye on:

• Acquisitions and Dispositions: Buying or selling properties can significantly alter revenue streams.
• Market Conditions: Economic factors, such as changes in rental demand or property values, can impact revenue.
• Operational Improvements: Upgrades to properties or changes in management strategies can influence revenue generation.

For more insights into BRT Apartments Corp., you might find their Mission Statement, Vision, & Core Values of BRT Apartments Corp. (BRT) helpful.

BRT Apartments Corp. (BRT) Profitability Metrics

Analyzing BRT Apartments Corp. (BRT)'s profitability involves examining its gross profit, operating profit, and net profit margins to understand the company's financial health and operational efficiency. By comparing these metrics against industry averages and historical trends, investors can gain valuable insights into BRT's ability to generate profits.

Here's a breakdown of key profitability metrics:

• Gross Profit Margin: This ratio indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). It reflects the company's efficiency in managing production costs.
• Operating Profit Margin: This margin shows the percentage of revenue remaining after deducting both COGS and operating expenses. It provides insights into the company's profitability from its core business operations.
• Net Profit Margin: The net profit margin represents the percentage of revenue remaining after all expenses, including interest and taxes, have been deducted. It is a comprehensive measure of overall profitability.

To assess BRT Apartments Corp.'s financial performance, we can analyze these profitability ratios. For the fiscal year 2024, BRT reported:

• Gross Profit: $74.9 million
• Operating Income: $33.4 million
• Net Income: $15.8 million

A closer look at the financial results for the year ended September 30, 2024, compared to the year ended September 30, 2023, reveals the following:

• Total revenue increased from $140.9 million in 2023 to $156.1 million in 2024.
• Net income attributable to common stockholders decreased from $21.9 million in 2023 to $15.8 million in 2024.

The following table provides a detailed comparison of BRT's financial performance between 2024 and 2023:

Analyzing these figures helps to understand BRT's operational efficiency, cost management, and overall financial health. While revenue increased, the decrease in net income suggests potential challenges in managing expenses or other factors impacting profitability.

For a deeper dive into BRT Apartments Corp.'s financial health, you can read the full analysis here: Breaking Down BRT Apartments Corp. (BRT) Financial Health: Key Insights for Investors

BRT Apartments Corp. (BRT) Debt vs. Equity Structure

Understanding how BRT Apartments Corp. (BRT) finances its operations and growth is crucial for investors. This involves examining its debt levels, debt-to-equity ratio, and recent financing activities to assess its financial risk and stability.

As of December 31, 2023, BRT Apartments Corp. (BRT) reported the following debt situation:

• Total debt outstanding: $512.2 million
• This comprises various loans, including those from Fannie Mae and other sources.

The company’s debt includes:

• Mortgage loans
• Other notes payable

The maturity dates for these debts extend up to January 1, 2036. For instance, the Fannie Mae loan has a balance of $44.49 million with an interest rate of 4.13%, maturing on January 1, 2036.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. BRT Apartments Corp. (BRT) had a debt-to-equity ratio of approximately 1.37 as of December 31, 2023. This ratio is calculated by dividing total liabilities by total equity.

A debt-to-equity ratio of 1.37 indicates that BRT Apartments Corp. (BRT) has more debt than equity. Whether this is high or low depends on industry standards and the company's specific circumstances. Generally, a ratio above 1.0 suggests higher financial leverage, which can increase risk but also potentially increase returns if the company manages its debt effectively.

Here's a snapshot of BRT Apartments Corp. (BRT)'s debt profile:

BRT Apartments Corp. (BRT) strategically balances debt and equity to fund its growth. While specific details on recent debt issuances or refinancing activities aren't available, monitoring these activities is essential. The balance between debt and equity affects the company's financial flexibility and risk profile. More insights into the company's strategic direction can be found at Mission Statement, Vision, & Core Values of BRT Apartments Corp. (BRT).

BRT Apartments Corp. (BRT) Liquidity and Solvency

Assessing the financial health of BRT Apartments Corp. (BRT) requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Here's an overview of BRT's liquidity, based on the most recent data:

• Current Ratio: For the year 2024, the current ratio is 1.96.
• Quick Ratio: The quick ratio for 2024 is also 1.96.
• Cash Ratio: The cash ratio for 2024 is 1.12.

A current ratio of 1.96 suggests that BRT Apartments Corp. has $1.96 of current assets for every $1 of current liabilities. Similarly, a quick ratio of 1.96 indicates that the company has $1.96 of liquid assets available to cover each dollar of current liabilities. The fact that the current and quick ratios are the same indicates BRT's current assets are mostly liquid. A cash ratio of 1.12 suggests that BRT has $1.12 of cash and cash equivalents to cover $1 of current liabilities.

Here's an overview of BRT's working capital trends:

• Working Capital: For 2024, the working capital is reported as $23.83 million.

Positive working capital, as seen in 2024, generally indicates that a company has enough short-term assets to cover its short-term liabilities. This is a sign of good short-term financial health.

Here's an overview of BRT's cash flow trends:

• Operating Cash Flow: BRT's operating cash flow for Q4 2024 was $0.16.
• Free Cash Flow: BRT's free cash flow for Q4 2024 was $0.54.

A positive operating cash flow indicates that the company is generating cash from its core business operations, which is a healthy sign. BRT's available liquidity as of March 1, 2024, was approximately $81.2 million, including $21.2 million in cash and cash equivalents and up to $60.0 million available under its credit facility.

Here's a table summarizing key liquidity ratios and working capital for BRT Apartments Corp.:

Based on the data, BRT Apartments Corp. demonstrates strong liquidity positions. The current and quick ratios above 1 indicate a solid ability to cover short-term liabilities with current assets. The positive trend in working capital further supports this assessment. Investors can also review Mission Statement, Vision, & Core Values of BRT Apartments Corp. (BRT).

BRT Apartments Corp. (BRT) Valuation Analysis

Assessing whether BRT Apartments Corp. (BRT) is overvalued or undervalued involves examining several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, alongside stock price trends, dividend yield, payout ratios, and analyst consensus.

Currently, up-to-date, detailed valuation ratios such as P/E, P/B, and EV/EBITDA for BRT Apartments Corp. are not available as of April 21, 2025, from the provided search results. For the most accurate and current data, consulting financial websites like Yahoo Finance, Bloomberg, or SEC filings would be essential.

Analyzing stock price trends provides insight into market sentiment and historical performance. Recent stock performance data for BRT Apartments Corp. can be found on financial analysis platforms. These platforms typically offer charts and data reflecting price movements over various periods, including the last 12 months and longer.

Dividend yield and payout ratios are crucial for income-focused investors. As of April 2025, the latest dividend yield and payout ratio information should be sourced from financial news outlets or BRT Apartments Corp.'s investor relations page. These metrics indicate the proportion of earnings distributed as dividends and the sustainability of these payouts.

Analyst consensus offers a summarized view of professional opinions on BRT Apartments Corp.’s stock. These ratings, typically categorized as buy, hold, or sell, reflect collective expectations regarding the stock's future performance. Recent analyst ratings and price targets can be gathered from financial news and analysis websites.

For a comprehensive understanding of BRT Apartments Corp.'s strategic direction, refer to: Mission Statement, Vision, & Core Values of BRT Apartments Corp. (BRT).

BRT Apartments Corp. (BRT) Risk Factors

BRT Apartments Corp. (BRT) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and broader market conditions. Understanding these potential challenges is crucial for investors assessing the company's stability and future prospects. For more insights, see: Breaking Down BRT Apartments Corp. (BRT) Financial Health: Key Insights for Investors

One of the primary external risks BRT faces is the intense competition within the real estate industry. This includes competition for:

• Acquisition and development opportunities
• Tenants
• Financing

Increased competition can lead to lower occupancy rates, reduced rental income, and higher costs associated with attracting and retaining tenants. Furthermore, changes in regulations, such as rent control policies or zoning laws, can limit BRT's ability to maximize revenue and property values.

Market conditions also pose a significant risk. Economic downturns, rising interest rates, and fluctuations in property values can all adversely affect BRT's financial performance. For instance, a recession could lead to increased unemployment, reducing the demand for apartments and potentially leading to higher vacancy rates. Rising interest rates could increase borrowing costs, making it more expensive for BRT to finance new acquisitions or refinance existing debt.

In addition to external factors, BRT faces several operational, financial, and strategic risks. These risks are often detailed in the company’s earnings reports and filings. Operational risks include:

• Property management challenges
• Maintenance and repair costs
• Potential environmental liabilities

Financial risks encompass:

• Debt levels
• Interest rate volatility
• Access to capital markets

Strategic risks may involve:

• Over-reliance on specific markets
• Failure to adapt to changing tenant preferences
• Unsuccessful integration of acquired properties

To mitigate these risks, BRT may implement various strategies. These could include:

• Diversifying its property portfolio across different geographic locations and property types
• Implementing proactive property management practices to maintain high occupancy rates and tenant satisfaction
• Carefully managing its debt levels and interest rate exposure
• Adhering to all applicable environmental regulations and maintaining adequate insurance coverage

Below is a table summarizing potential risks and possible mitigation strategies:

BRT Apartments Corp. (BRT) Growth Opportunities

For investors eyeing BRT Apartments Corp. (BRT), understanding the company's potential for future expansion is key. Several factors appear poised to influence BRT's trajectory in the coming years.

Key growth drivers for BRT Apartments Corp. (BRT) include:

• Market Expansions: BRT focuses on strategic investments in the Southeast and Texas. These regions demonstrate strong population and job growth, creating a favorable environment for apartment demand.
• Value-Add Initiatives: BRT enhances property value through renovations and upgrades. These improvements lead to higher rental income and increased property valuations.
• Operational Efficiencies: BRT's focus on streamlining operations and managing expenses effectively contributes to higher net operating income (NOI).

While specific future revenue growth projections and earnings estimates for BRT Apartments Corp. (BRT) aren't available, investors can monitor key performance indicators (KPIs) such as:

• Same-Store NOI Growth: Measures the increase in net operating income for properties owned for at least one year, indicating operational efficiency and rental rate growth.
• Occupancy Rates: High occupancy rates signal strong demand for BRT's properties.
• Rental Rate Growth: Indicates the company's ability to increase rental income.
• Acquisition Activity: Tracks BRT's expansion into new markets or property types.

Strategic initiatives that may drive future growth for BRT Apartments Corp. (BRT) include:

• Joint Ventures and Partnerships: Collaborating with other real estate companies can provide access to capital and expertise for new developments or acquisitions.
• Technology Adoption: Implementing innovative property management technologies can improve efficiency and enhance tenant experience.
• Sustainability Initiatives: Focusing on environmentally friendly practices can attract tenants and reduce operating costs.

BRT Apartments Corp. (BRT) possesses several competitive advantages that position it for growth:

• Geographic Focus: Specialization in high-growth markets provides a competitive edge.
• Experienced Management Team: A skilled leadership team can effectively navigate market challenges and capitalize on opportunities.
• Disciplined Capital Allocation: Prudent investment decisions ensure long-term value creation.

For insights into the company's guiding principles, refer to: Mission Statement, Vision, & Core Values of BRT Apartments Corp. (BRT).