BRT Apartments (BRT) AI Stock Analysis

• Market Cap: $288.46M
• Dividend Yield: 6.55%
• Average Volume (3M): 37.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: 2.39%
• EPS Growth: -407.57%
• Country: US
• Employees: 8
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Residential
• EPS (TTM): -0.12
• Shares Outstanding: 18,902,800
• 10 Day Avg. Volume: 32,951
• 30 Day Avg. Volume: 37,646
• PEG Ratio: -2.91
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.97
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 5.25
• Enterprise Value/Ebitda: 1.79
• 1Y Price Target: $21.67
• Price Target Upside: 42.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: $16.00 ▲( 4.85% Upside)

BRT Apartments' stock score is primarily influenced by its solid cash flow management and stable revenue, despite challenges in profitability and high leverage. The technical indicators suggest a bearish trend but show potential for a correction. The stock's high dividend yield is attractive but is overshadowed by negative earnings, making the valuation less favorable. Overall, while there are strengths in cash flow and dividend yield, the financial risks and negative profitability weigh heavily on the stock's attractiveness.

Positive Factors

Capital Management

BRT repurchased shares at a significant discount to FTM NAV, which is seen as an excellent use of capital.

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.

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.

Operating Expenses

Operating expenses increased 6.7%, which resulted in NOI decreasing 4.8% on a consolidated basis.

BRT Apartments Business Overview & Revenue Model

Company Description

BRT is a real estate investment trust that owns, operates and develops multi-family properties.

How the Company Makes Money

BRT 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 exhibits stability in revenue and operational cash flows but faces challenges in profitability and high leverage. While the company maintains a healthy gross profit margin and stable revenue growth, its net profit margins and ROE are negative, reflecting profitability struggles. The balance sheet indicates high leverage, which could be risky if not managed carefully. Despite these challenges, the company demonstrates effective cash flow management, which could support operations and potential growth if profitability improves.

Income Statement

BRT Apartments shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin stands at 54.6%, indicating strong control over cost of sales. However, the net profit margin is negative at -9.3%, reflecting ongoing challenges in achieving profitability. The revenue growth rate from the previous year is modest at 0.3%, suggesting stable but slow growth. EBIT and EBITDA margins at 11.1% and 41.4% respectively show a good capability to generate operating income, yet the overall net loss remains a concern.

Balance Sheet

The balance sheet of BRT Apartments indicates a highly leveraged position with a debt-to-equity ratio of 2.43, raising concerns about financial risk. The return on equity (ROE) is negative due to the net loss, highlighting inefficiencies in generating returns from shareholders' equity. The equity ratio of 28.2% suggests a moderate level of equity financing, but the high debt levels could pose risks if not managed effectively.

Cash Flow

BRT Apartments demonstrates a solid cash flow performance with a free cash flow to net income ratio of -1.97, indicating challenges in translating income into free cash flow due to net losses. However, the operating cash flow to net income ratio is -2.48, suggesting better operational cash generation compared to net income. The free cash flow growth rate of -1.8% compared to the previous period is modest, indicating stable cash flow management despite profitability issues.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
95.95M	95.63M	93.62M	70.53M	32.06M	28.10M
	Gross Profit
52.42M	52.08M	51.80M	39.97M	17.86M	15.72M
	EBIT
10.61M	10.28M	39.24M	66.93M	27.98M	-8.74M
	EBITDA
39.73M	38.66M	54.71M	91.74M	36.01M	-2.00M
	Net Income Common Stockholders
-8.97M	-9.79M	3.87M	49.95M	29.11M	-19.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.37M	27.86M	23.51M	20.28M	32.34M	19.89M
	Total Assets
703.91M	713.46M	709.96M	732.12M	459.54M	365.74M
	Total Debt
482.88M	483.63M	459.57M	459.42M	236.98M	167.52M
	Net Debt
458.51M	455.78M	436.06M	439.14M	204.64M	147.63M
	Total Liabilities
505.52M	508.55M	481.52M	482.05M	256.59M	188.05M
	Stockholders Equity
198.45M	204.97M	228.46M	250.09M	202.96M	177.77M
Cash Flow		Free Cash Flow
17.67M	17.99M	9.96M	8.73M	-1.84M	-2.64M
	Operating Cash Flow
22.22M	24.14M	19.61M	15.03M	-529.00K	-1.75M
	Investing Cash Flow
-18.53M	-18.91M	16.68M	-19.37M	-22.10M	4.84M
	Financing Cash Flow
4.08M	3.57M	-32.23M	-13.42M	32.86M	-6.81M

BRT Apartments Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 15.26 is below the 20-day moving average (MA) of 15.48, below the 50-day MA of 16.09, and below the 200-day MA of 17.17, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 42.53 is Neutral, neither overbought nor oversold. The STOCH value of 51.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRT.

BRT Apartments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSR	67 Neutral	$1.08B	―	-1.55%	4.94%	-1.81%	-33.33%
CLPR	61 Neutral	$63.62M	―	46.22%	9.64%	8.64%	-213.95%
Sector *	60 Neutral	$2.76B	10.59	0.51%	8507.90%	5.51%	-19.44%
NXRT	55 Neutral	$845.40M	866.19	-7.19%	5.84%	-7.44%	-143.64%
BRT	54 Neutral	$288.46M	―	-4.28%	6.55%	2.39%	-407.57%
BHM		$42.31M	―	0.39%	1.20%	―	―
SUNS	52 Neutral	$141.73M	10.34	7.07%	5.96%	―	―

BRT Apartments Corporate Events

BRT Apartments Releases Q1 2025 Financial Information

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.

BRT Apartments Releases 2024 Financial Information

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.