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BRT Apartments (BRT)
NYSE:BRT
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BRT Apartments
(NYSE:BRT)
61Neutral
Positive Factors
Liquidity Position
BRT is in a strong liquidity position with approximately ~$86 million, including $45.8 million of cash and cash equivalents, and maintained its revolving credit facility of up to $40.0 million, with $0 outstanding.
Market Valuation
BRT stock is currently trading at a 34% discount to FTM NAV, presenting a public market valuation that is seen as overdone and misaligned with private market conditions.
Share Repurchase
BRT repurchased shares at a significant discount to FTM NAV, which is seen as an excellent use of capital.
Negative Factors
Earnings Performance
BRT reported 4Q24 core FFO of $0.28, below both Citizens and consensus estimates of $0.31 and $0.29, respectively, due to lower NOI partially offset by G&A expense.
Leverage Concerns
Net acquisitions will be tough given the company's high leverage.
Operating Expenses
Operating expenses increased 6.7%, which resulted in NOI decreasing 4.8% on a consolidated basis.
BRT Apartments (BRT) vs. S&P 500 (SPY)
Market Cap
$289.62M
Dividend Yield6.5%
Average Volume (3M)44.67K
Price to Earnings (P/E)―
Beta (1Y)0.72
Revenue Growth2.39%
EPS Growth-407.57%
CountryUS
Employees8
SectorReal Estate
Sector Strength81
IndustryREIT - Residential
Share Statistics
EPS (TTM)-0.12
Shares Outstanding18,929,682
10 Day Avg. Volume58,089
30 Day Avg. Volume44,668
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.67
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit14.87
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.67Price Target Upside42.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
BRT Apartments Business Overview & Revenue Model
Company DescriptionBRT is a real estate investment trust that owns, operates and develops multi-family properties.
How the Company Makes MoneyBRT Apartments generates revenue primarily through rental income from its residential properties. The company owns and manages a diverse portfolio of apartment buildings, charging tenants monthly rent for occupancy. In addition to rental income, BRT may earn additional revenue from service fees, such as late payment charges, pet fees, and parking fees. The company also benefits from strategic partnerships with local businesses and service providers, offering tenants exclusive deals and services that enhance tenant satisfaction and retention, contributing to the company's overall profitability. Furthermore, BRT may engage in property sales or redevelopment projects, generating significant one-time revenue from such transactions.
BRT Apartments Financial Statement Overview
Summary
BRT Apartments shows strong revenue growth and a solid balance sheet with zero debt by 2024. However, declining EBIT and EBITDA margins indicate potential operational challenges.Income Statement
BRT Apartments shows a strong revenue growth trajectory, particularly impressive from 2020 to 2022. The gross profit margin has remained stable, with a notable improvement from 2020's losses. However, the recent EBIT and EBITDA margins have decreased significantly from previous years, indicating potential operational challenges or increased costs that need attention.75
Positive
Balance Sheet
BRT Apartments has eliminated its total debt by 2024, which is a significant improvement in its financial stability and risk profile. The equity ratio is healthy, reflecting a strong balance sheet. The company has successfully reduced liabilities over time, enhancing its leverage position.80
Positive
Cash Flow
The company has demonstrated a strong operating cash flow, with consistent growth over the years. However, the free cash flow growth is less impressive, indicating that capital expenditures or changes in working capital might be affecting cash reserves. The operating cash flow to net income ratio is robust, but the free cash flow to net income ratio can be improved.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 95.63M | 93.62M | 70.53M | 32.06M | 28.10M |
| Gross Profit | ||||
| 52.08M | 51.80M | 39.97M | 17.86M | 15.72M |
| EBIT | ||||
| 4.07M | 39.24M | 66.93M | 27.98M | -8.74M |
| EBITDA | ||||
| 38.66M | 54.71M | 91.74M | 36.01M | -2.00M |
| Net Income Common Stockholders | ||||
| -9.79M | 3.87M | 49.95M | 29.11M | -19.73M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 27.86M | 23.51M | 20.28M | 32.34M | 19.89M |
| Total Assets | ||||
| 713.46M | 709.96M | 732.12M | 459.54M | 365.74M |
| Total Debt | ||||
| 483.63M | 459.57M | 459.42M | 236.98M | 167.52M |
| Net Debt | ||||
| 455.78M | 436.06M | 439.14M | 204.64M | 147.63M |
| Total Liabilities | ||||
| 508.55M | 481.52M | 482.05M | 256.59M | 188.05M |
| Stockholders Equity | ||||
| 204.97M | 228.46M | 250.09M | 202.96M | 177.77M |
| Cash Flow | Free Cash Flow | |||
| 24.14M | 9.96M | 8.73M | -1.84M | -2.64M |
| Operating Cash Flow | ||||
| 24.14M | 19.61M | 15.03M | -529.00K | -1.75M |
| Investing Cash Flow | ||||
| -18.91M | 16.68M | -19.37M | -22.10M | 4.84M |
| Financing Cash Flow | ||||
| 3.57M | -32.23M | -13.42M | 32.86M | -6.81M |
BRT Apartments Technical Analysis
Negative
15.22
Price Trends
16.54
Negative
16.96
Negative
17.29
Negative
Market Momentum
-0.29
Negative
39.46
Neutral
15.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRT, the sentiment is Negative. The current price of 15.22 is below the 20-day moving average (MA) of 15.53, below the 50-day MA of 16.54, and below the 200-day MA of 17.29, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 39.46 is Neutral, neither overbought nor oversold. The STOCH value of 15.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRT.
BRT Apartments Risk Analysis
BRT Apartments disclosed 34 risk factors in its most recent earnings report. BRT Apartments reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BRT Apartments Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $64.75M | ― | 46.22% | 9.31% | 7.65% | 42.14% | |
64 Neutral | $1.08B | ― | -1.55% | 4.99% | -1.81% | -33.33% | |
61 Neutral | $289.62M | ― | -4.26% | 6.50% | 2.39% | -407.57% | |
60 Neutral | $2.80B | 11.09 | 0.20% | 8508.36% | 6.13% | -16.84% | |
55 Neutral | $958.89M | 866.19 | -7.19% | 5.24% | -7.44% | -143.64% | |
52 Neutral | $145.02M | 10.75 | 7.07% | 6.02% | ― | ― |
* Real Estate Sector Average
Performance Comparison
BRT
BRT Apartments
15.22
-1.42
-8.53%
CSR
Centerspace
61.38
-5.44
-8.14%
NXRT
NexPoint Residential
37.25
3.11
9.11%
CLPR
Clipper Realty
4.01
0.34
9.26%
BHM
Bluerock Homes Trust, Inc. Class A
10.20
-7.03
-40.80%
SUNS
Sunrise Realty Trust Inc
10.56
0.03
0.28%
BRT Apartments Earnings Call Summary
Earnings Call Date:Mar 12, 2025
(Q4-2023)
| % Change Since: -18.22%|
Next Earnings Date:May 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strategic decisions such as business simplification and share repurchases that position BRT for long-term success. However, it also acknowledged current challenges including a tough operating environment, quiet transaction market, and unexpected setbacks. The company remains optimistic about future growth beyond 2024.Q4-2023 Updates
Positive Updates
Successful Business Simplification
BRT has simplified its business by taking full ownership of a majority of its properties, improving its balance sheet, and implementing a disciplined approach to capital allocation. They have no significant mortgage debt maturities until early 2026.
Strategic Share Repurchases
BRT has repurchased $16.7 million of shares during 2023 and into 2024, which management believes is a smart long-term investment.
Positive Long-term Market Outlook
Despite current challenges, BRT remains optimistic about growth in 2025 and 2026, particularly in the Sunbelt region, due to anticipated absorption of new supply and limited permitting.
Negative Updates
Challenging Operating Environment
BRT anticipates a challenging 2024 due to new supply impacting rent growth, occupancy pressures, and ongoing inflationary headwinds affecting operating margins.
Quiet Transactional Market
There is a very quiet transactional environment due to high interest rates exceeding cap rates, creating negative leverage and reducing excitement for purchases.
Unexpected Development Setback
The Silvana Oaks project experienced a delay due to arson affecting one building, although the issue has been resolved and leasing has begun.
Company Guidance
During the BRT Apartments Corp. Q4 2023 earnings call, the company provided guidance on several key metrics and operational strategies for 2024. They highlighted that no significant mortgage debt maturities are expected until early 2026, and noted that $16.7 million worth of shares were repurchased in 2023 and into 2024. The management emphasized the challenges posed by new supply affecting rent growth and occupancy, alongside inflationary pressures impacting operating margins. They plan to prioritize stabilizing occupancy and cautiously approach potential transaction activities later in the year. Despite a quiet transaction environment with cap rates in the mid-5% range and high interest rates, the company remains optimistic about long-term growth, particularly in the Sunbelt region, aiming for better market conditions in 2025 and 2026.BRT Apartments Corporate Events
Business Operations and StrategyFinancial Disclosures
BRT Apartments Releases Q1 2025 Financial Information
Neutral
May 8, 2025
BRT Apartments has released supplemental financial information for the three months ended March 31, 2025. The company highlights various risks and uncertainties that could impact its operations, including economic conditions, real estate market dynamics, and regulatory changes. The report emphasizes the potential challenges in maintaining cash flows, acquiring properties, and managing expenses, while also noting the company’s concentration in specific geographic markets. Stakeholders are advised to consider these factors when evaluating the company’s future performance.
Spark’s Take on BRT Stock
According to Spark, TipRanks’ AI Analyst, BRT is a Neutral.
BRT Apartments demonstrates strong financial recovery with zero debt and stable revenue growth, but faces operational challenges indicated by declining EBIT and EBITDA margins. Technical analysis suggests current bearish momentum, yet the oversold conditions could lead to a rebound. The negative P/E ratio and high dividend yield present valuation concerns, highlighting the need for improved earnings to sustain dividends.
To see Spark’s full report on BRT stock, click here.
Financial Disclosures
BRT Apartments Releases 2024 Financial Information
Neutral
Mar 12, 2025
BRT Apartments Corp. has released supplemental financial information for the three and twelve months ended December 31, 2024. The company, which operates in the real estate sector with a focus on multi-family properties, particularly in the Southeastern United States and Texas, is addressing various risks and uncertainties that could impact its future performance. These include economic conditions, real estate market dynamics, and operational challenges. The report highlights potential impacts on cash flows, property acquisitions, and rental rates, emphasizing the need for stakeholders to be cautious about forward-looking statements due to inherent uncertainties.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.