BRT Apartments Corp (BRT) Reports Q3 2023 Earnings, Affirms Full Year Guidance
BRT Apartments Corp (NYSE:BRT) reported a net loss of $1.5 million for Q3 2023, compared to a net income of $7.1 million in Q3 2022.
The company's Funds from Operations (FFO) increased to $0.31 per diluted share, and Adjusted Funds from Operations (AFFO) increased to $0.41 per diluted share.
Equity in earnings of unconsolidated joint ventures increased to $426,000 in Q3 2023, up from $135,000 in Q3 2022.
BRT Apartments Corp (NYSE:BRT) affirmed its full year 2023 guidance.
On November 6, 2023, BRT Apartments Corp (NYSE:BRT), a real estate investment trust that owns and operates multi-family properties, released its earnings report for the third quarter ended September 30, 2023. Despite reporting a net loss, the company showed signs of stability with increased FFO and AFFO.
Financial Highlights
BRT reported a net loss of $1.5 million, or $(0.08) per diluted share, for Q3 2023. This is a significant decrease compared to the net income of $7.1 million, or $0.37 per diluted share, reported for the corresponding quarter in 2022. The decrease was primarily due to the sale of a property owned by an unconsolidated subsidiary in the prior-year period.
However, the company's FFO increased to $0.31 per diluted share, up from $0.29 per diluted share in Q3 2022. Similarly, AFFO increased to $0.41 per diluted share, up from $0.38 per diluted share in the corresponding 2022 quarter. These increases were primarily due to a reduction in early extinguishment of debt and an increase in other income.
Equity in earnings of unconsolidated joint ventures was $426,000 in Q3 2023, a significant increase from $135,000 in Q3 2022. The company also repurchased 264,165 shares during the third quarter at a weighted average price of $18.33, with $4.3 million remaining under its current share repurchase authorization.
Operational Highlights
Despite an industry-wide inflationary headwind from non-controllable expenses, BRT's portfolio continued to perform well. Occupancy remained stable in 2023, and the company generated solid combined revenue growth on a year-over-year and sequential basis due to increases in rental rates. The year-over-year improvement in FFO and AFFO per share reflects the stability in the portfolio as well as strategic capital allocation.
For leases signed during the third quarter in the Combined Portfolio, the company experienced a 4.7% increase on renewal leases, a 2.0% increase on new leases, and a 3.5% increase on a blended basis compared with the prior lease.
Looking Ahead
BRT affirmed its full year 2023 guidance and accompanying assumptions previously issued on March 14, 2023. With no debt maturities until 2025, substantial liquidity, and full availability on its credit facility, the company is well-positioned to be opportunistic over the next 12 months with more share repurchases, asset acquisitions, and rescue capital situations with smaller owners and developers.
Explore the complete 8-K earnings release (here) from BRT Apartments Corp for further details.
This article first appeared on GuruFocus.
