NYSE$BRT

BRT Apartments Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported results for the second quarter, which showed a net loss, but FFO and AFFO were in line with the previously outlined 2024 outlook.

BRT Apartments Corp. reported a net loss of $2.3 million for Q2 2024, with a loss per diluted share of $(0.13). However, Funds from Operations (FFO) was $0.29 per diluted share, and Adjusted Funds from Operations (AFFO) was $0.35 per diluted share, aligning with the company's 2024 outlook. The Combined Portfolio NOI increased 1.8% compared to the prior-year period.

  • Net loss of $2.3 million, or $(0.13) per diluted share was reported.
  • Funds from Operations (FFO) of $0.29 per diluted share and Adjusted Funds from Operations (AFFO) of $0.35 per diluted share was achieved.
  • Equity in earnings of unconsolidated joint ventures was $389,000.
  • Combined Portfolio NOI increased 1.8% compared to the prior-year period.

Headline financials

Total Revenue

$23.9M

Previous: $23.3M+2.3%
EPS

-$0.13

Previous: $0.37-135.1%
Capital Expenditures

-$3.36M

Previous: -$4.82M+30.4%
Free Cash Flow

-$5.7M

Previous: $6.38M-189.4%
Net Income

-$2.35M

Previous: $11.2M-120.9%
Operating Income

-$2.76M

Previous: -$4.13M+33.2%
Gross Profit

$7.52M

Previous: $7.26M+3.6%

Revenue & EPS history

BRT · Revenue · Quarterly

$23.9M

Q2 2024+2.3%vs Q2 2023
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

BRT · $21.7M total across 1 segment · Q3 2022

  • Rental and Other Revenue
    $21.7M

Forward guidance

The operational environment in BRT’s Combined Portfolio is expected to be consistent with other Sunbelt-focused operators with new supply muting new and renewal lease rent growth until at least the second half of 2024 as the new supply is absorbed.

Tailwinds

  • 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 2023 and non-controllable expenses, particularly insurance, are expected to moderate somewhat compared to 2023.
  • BRT’s balance sheet has no debt maturities until the third quarter of 2025, improved pricing and full availability on its credit facility and ample liquidity to deploy.
  • A more favorable transaction environment in the second half of 2024 with smaller, private operators experiencing capital, ownership and/or refinancing challenges.
  • Long-term, the Company believes the Sunbelt offers compelling advantages due to the predominance of pro-business states, along with better population and job growth from migration patterns and business investment.

Headwinds

  • New supply growth expected to moderate in Sunbelt markets in 2025 and 2026.
  • Recently completed 240-unit Stono Oaks development in Johns Island, SC, of which BRT owns a 17.45% interest, is in lease up and is anticipated to lead to a drag on earnings from equity in unconsolidated joint ventures as the Company begins recognizing depreciation and interest expense associated with the development.
  • Company remains patient on asset growth in the near term.
  • Disciplined capital allocation strategy.
  • Focus on stabilizing occupancy in a challenging leasing environment during 2024.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.1%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+2.9%

Avg return

30 days after

54%

32 / 59 earnings

Positive

+13.2%

Q4 2020

Best reaction

-11.2%

Q1 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%+0.1%+0.8%
Q4 2025+3.3%-3.5%-2.7%
Q3 2025-1.6%-2.1%-2.0%
Q1 2025-2.0%-2.9%+4.0%
Q4 2024-2.4%-5.3%-10.9%
Q3 2024+4.8%+1.8%+4.1%
Q2 2024-3.8%-3.1%+1.5%
Q1 2024-2.1%-5.7%-4.7%
Q4 2023+2.2%+1.7%+7.3%
Q3 2023-1.1%-2.4%+9.1%
Q2 2023-2.3%-0.9%-5.6%
Q1 2023-3.3%-0.6%+15.7%
Q4 2022-7.4%-8.7%-6.3%
Q3 2022-2.5%+0.4%-5.8%
Q2 2022+5.1%+14.9%+4.4%
Q1 2022-7.9%+0.2%+9.6%
Q4 2021+0.2%+4.3%+2.3%
Q3 2021-3.0%-5.1%-4.3%
Q2 2021+2.9%+1.6%+18.3%
Q1 2021+1.6%-3.1%+0.8%
Q4 2020+13.2%+9.6%-6.0%
Q3 2020+1.5%+15.4%+17.9%
Q2 2020-5.3%-2.3%+19.7%
Q1 2020-0.6%-5.6%-7.0%
Q4 2019+2.8%+3.3%+10.4%
Q3 2019+3.6%+4.8%+5.1%
Q2 2019-0.1%-1.6%-8.7%
Q1 2019+1.2%+0.9%+4.2%
Q4 2018+0.9%-0.4%+8.4%
Q3 2018-1.8%+0.2%-1.7%
Q2 2018+1.6%+5.7%+5.9%
Q1 2018-0.3%-3.2%-7.5%
Q4 2017+1.5%+1.4%+16.9%
Q3 2017-1.6%-4.4%-1.0%
Q2 2017+0.1%+1.1%+0.5%
Q1 2017+1.1%+1.1%-5.1%
Q4 2016+2.6%+2.5%+6.8%
Q3 2016+0.1%+0.4%+14.9%
Q2 2016
Q1 2016+0.5%
Q4 2015-3.1%
Q3 2015+0.6%
Q1 2015-0.8%
Q4 2014-2.8%
Q2 2014-1.4%
Q1 2014+3.8%
Q4 2013-1.8%
Q3 2013+1.3%
Q2 2013+5.4%
Q1 2013-11.2%
Q4 2012+0.3%
Q3 2012-0.5%
Q2 2012+0.5%
Q1 2012+0.6%
Q4 2011+0.8%
Q2 2011+3.8%
Q4 2010+3.8%
Q1 2011+3.9%
Q2 2010-1.3%
Q1 2010+0.0%

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