BRT Apartments (BRT) AI Stock Analysis

• Market Cap: $297.15M
• Dividend Yield: 6.36%
• Average Volume (3M): 30.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: 2.16%
• EPS Growth: 11.18%
• Country: US
• Employees: 8
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Residential
• EPS (TTM): -0.15
• Shares Outstanding: 18,902,800
• 10 Day Avg. Volume: 24,032
• 30 Day Avg. Volume: 30,036
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.48
• Enterprise Value/Revenue: 7.68
• Enterprise Value/Gross Profit: 14.14
• Enterprise Value/Ebitda: 18.44
• 1Y Price Target: $15.50
• Price Target Upside: -3.13% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 48 Neutral
• Price Target: $15.00 ▼(-6.25% Downside)

The overall stock score for BRT Apartments is primarily influenced by its financial performance challenges, including declining revenue growth and high leverage. Technical analysis suggests a neutral to slightly bearish trend, while valuation concerns arise from a negative P/E ratio despite a high dividend yield. The positive corporate event of shareholder approval does not significantly impact the score due to its lower weight.

Positive Factors

Analyst Recommendations

Analyst recommends a positive outlook for BRT Apartments Corp.

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

Financial 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 and Acquisitions

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 Business Overview & Revenue Model

Company Description

BRT Apartments (BRT) is a real estate investment trust (REIT) that focuses on the acquisition, development, and management of multifamily residential properties across the United States. The company primarily operates in the residential sector, offering a diverse portfolio of apartment communities that cater to various demographics, including students, families, and professionals. BRT aims to provide quality housing solutions while maximizing returns for its shareholders through strategic property management and investment.

How the Company Makes Money

BRT Apartments generates revenue primarily through rental income from its multifamily properties. The company collects rents from tenants living in its apartment communities, which constitute its main revenue stream. Additionally, BRT may earn income through ancillary services such as leasing fees and amenity fees, as well as from the appreciation of its property values over time. The company may also engage in strategic partnerships or joint ventures with other real estate firms to expand its portfolio and enhance its earning potential. This diversified approach allows BRT to capitalize on various market conditions and tenant demands, contributing to its overall financial performance.

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	95.90M	95.63M	93.62M	70.53M	32.06M	28.10M
Gross Profit	52.10M	52.08M	51.80M	39.97M	17.86M	15.72M
EBITDA	39.96M	38.66M	54.71M	91.25M	44.24M	-5.64M
Net Income	-9.19M	-9.79M	3.87M	49.95M	29.11M	-19.86M
Balance Sheet
Total Assets	699.56M	713.46M	709.96M	732.62M	459.54M	365.74M
Cash, Cash Equivalents and Short-Term Investments	23.64M	27.86M	23.51M	20.28M	32.34M	19.89M
Total Debt	482.16M	483.63M	459.57M	459.92M	236.98M	167.52M
Total Liabilities	507.51M	508.55M	481.52M	482.55M	256.59M	188.05M
Stockholders Equity	192.12M	204.97M	228.46M	250.09M	202.96M	177.77M
Cash Flow
Free Cash Flow	25.46M	17.99M	9.96M	8.73M	-1.84M	-2.64M
Operating Cash Flow	22.43M	24.14M	19.61M	15.03M	-529.00K	-1.75M
Investing Cash Flow	-17.62M	-18.91M	16.68M	-19.37M	-22.10M	4.84M
Financing Cash Flow	3.65M	3.57M	-32.23M	-13.42M	32.86M	-6.81M

BRT Apartments Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 16 is above the 20-day moving average (MA) of 15.26, above the 50-day MA of 15.47, and below the 200-day MA of 16.44, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 56.42 is Neutral, neither overbought nor oversold. The STOCH value of 78.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRT.

BRT Apartments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSR	66 Neutral	$1.04B	―	-3.35%	5.11%	-0.63%	-123.59%
Sector *	63 Neutral	$7.06B	13.38	-0.50%	6.96%	4.08%	-25.24%
NXRT	55 Neutral	$863.09M	866.19	-11.85%	5.88%	-6.02%	-156.44%
CLPR	52 Neutral	$71.04M	―	46.22%	8.48%	7.69%	-251.59%
BRT	48 Neutral	$297.15M	―	-4.52%	6.36%	2.16%	11.18%
BHM	―	$148.39M	―	1.20%	3.92%	―	―
SUNS	52 Neutral	$148.44M	10.44	8.62%	11.17%	―	―

BRT Apartments Corporate Events

BRT Apartments Releases Q2 2025 Financial Information

On August 7, 2025, BRT Apartments released supplemental financial information for the three months ended June 30, 2025. The report highlights various risks and uncertainties affecting the company’s operations, including economic conditions, real estate market dynamics, and regulatory changes. The company emphasizes the potential impact of these factors on its financial performance and strategic objectives, urging stakeholders to consider these risks when evaluating the company’s future prospects.

BRT Apartments Secures Shareholder Approval at Annual Meeting

At the annual meeting of stockholders on June 4, 2025, BRT Apartments successfully had all proposals approved, including the election of directors and the ratification of Ernst & Young LLP as the independent registered public accounting firm for 2025. This approval reflects a strong shareholder backing and is likely to support the company’s governance and financial reporting processes.

BRT Apartments EVP Mitchell Gould Announces Retirement

Mitchell Gould, Executive Vice President of BRT Apartments, has announced his intention to retire in early 2026. The company plans to seek a more junior replacement and may accelerate the vesting of Gould’s 50,810 shares upon his retirement.