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BRT Apartments (BRT)
NYSE:BRT

BRT Apartments (BRT) AI Stock Analysis

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BRT Apartments

(NYSE:BRT)

Rating:64Neutral
Price Target:
$17.00
▲(7.26%Upside)
BRT Apartments' overall score is driven by stable financial performance and effective cash flow management, despite profitability challenges and high leverage. Technical indicators suggest potential stability, while a high dividend yield provides an attractive income return. The positive corporate event further boosts investor confidence.
Positive Factors
Analyst Outlook
Analyst recommends a positive outlook for BRT Apartments Corp.
Capital Allocation
BRT repurchased shares at a significant discount to FTM NAV, which is seen as an excellent use of capital.
Market Conditions
With construction starts slowing, new supply is expected to decline significantly over the next two years, potentially creating a more favorable operating environment.
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.
Financial Leverage
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. SPDR S&P 500 ETF (SPY)

BRT Apartments Business Overview & Revenue Model

Company DescriptionBRT Apartments (BRT) is a real estate company specializing in the acquisition, development, and management of multifamily residential properties. Operating primarily in urban and suburban markets, BRT focuses on providing affordable and comfortable living spaces to a diverse range of tenants. The company's core services include property leasing, maintenance, and tenant management, ensuring high-quality living conditions and customer satisfaction.
How the Company Makes MoneyBRT Apartments generates revenue through the leasing of residential units across its portfolio of properties. The primary revenue stream comes from rental income paid by tenants on a monthly basis. Additionally, the company may engage in strategic partnerships with real estate developers or investment firms to expand its property holdings and enhance its service offerings. BRT may also earn income from ancillary services such as parking, storage, and pet fees, as well as through property management fees if managing properties on behalf of third-party owners.

BRT Apartments Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q4-2023)
|
% Change Since: 5.81%|
Next Earnings Date:Aug 11, 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 Financial Statement Overview

Summary
BRT Apartments shows mixed financial performance, with strong gross profit margins but negative net profit margins and ROE due to high leverage. The company demonstrates stable revenue growth and effective cash flow management, which could support future growth if profitability improves.
Income Statement
62
Positive
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
58
Neutral
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
65
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue95.95M95.63M93.62M70.53M32.06M28.10M
Gross Profit52.42M52.08M51.80M39.97M17.86M15.72M
EBITDA39.73M38.66M54.71M91.25M44.24M-5.64M
Net Income-8.97M-9.79M3.87M49.95M29.11M-19.86M
Balance Sheet
Total Assets703.91M713.46M709.96M732.62M459.54M365.74M
Cash, Cash Equivalents and Short-Term Investments24.37M27.86M23.51M20.28M32.34M19.89M
Total Debt482.88M483.63M459.57M459.92M236.98M167.52M
Total Liabilities505.52M508.55M481.52M482.55M256.59M188.05M
Stockholders Equity198.45M204.97M228.46M250.09M202.96M177.77M
Cash Flow
Free Cash Flow17.67M17.99M9.96M8.73M-1.84M-2.64M
Operating Cash Flow22.22M24.14M19.61M15.03M-529.00K-1.75M
Investing Cash Flow-18.53M-18.91M16.68M-19.37M-22.10M4.84M
Financing Cash Flow4.08M3.57M-32.23M-13.42M32.86M-6.81M

BRT Apartments Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price15.85
Price Trends
50DMA
15.55
Positive
100DMA
16.11
Negative
200DMA
16.68
Negative
Market Momentum
MACD
0.08
Negative
RSI
51.98
Neutral
STOCH
49.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRT, the sentiment is Neutral. The current price of 15.85 is above the 20-day moving average (MA) of 15.78, above the 50-day MA of 15.55, and below the 200-day MA of 16.68, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 51.98 is Neutral, neither overbought nor oversold. The STOCH value of 49.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CSCSR
66
Neutral
$1.07B-1.55%5.11%-1.81%-33.33%
BRBRT
64
Neutral
$298.29M-4.28%6.29%2.39%-407.57%
63
Neutral
$6.92B18.42-1.93%6.88%4.65%-25.39%
56
Neutral
$57.64M46.22%10.64%8.64%-213.95%
55
Neutral
$851.75M866.19-7.19%6.04%-7.44%-143.64%
52
Neutral
$148.31M10.827.07%10.84%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BRT
BRT Apartments
15.85
-0.66
-4.00%
CSR
Centerspace
59.89
-6.86
-10.28%
NXRT
NexPoint Residential
33.88
-3.77
-10.01%
CLPR
Clipper Realty
3.58
0.23
6.87%
SUNS
Sunrise Realty Trust Inc
10.90
-1.94
-15.11%

BRT Apartments Corporate Events

Shareholder Meetings
BRT Apartments Secures Shareholder Approval at Annual Meeting
Positive
Jun 4, 2025

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.

The most recent analyst rating on (BRT) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on BRT Apartments stock, see the BRT Stock Forecast page.

Executive/Board Changes
BRT Apartments EVP Mitchell Gould Announces Retirement
Neutral
May 28, 2025

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.

The most recent analyst rating on (BRT) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on BRT Apartments stock, see the BRT Stock Forecast page.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 09, 2025