Q3 2020 BRT Apartments Corp Earnings Call

Impact of rental increases on our residents with our obligations to our stockholders.

On the value add fronts for the current quarter 52 units were repositioned at an average of approximately $5800 per unit, yielding an estimated annualized return on investments of approximately 23%.

As reflected in our supplemental financial information a portion of the costs may have been incurred in a prior period, but we report the return on investment when the unit is released.

We anticipate that in the near term there will be a continued slowdown in the number of units that we reposition and our properties as the adverse economic impacts of the pandemic continued to unfold, which could impact our ability to achieve rent increases from repositions units that being said, we estimate that our portfolio has a proxy.

Only 600 units in the renovation pipeline over the net next couple of years and that over time the value add strategy will continue to be about positive factor in our ability to drive same store rent and an annualized growth over the long term.

Our same store pool in the current quarter is comprised of 34 properties with 9317 units seven of those properties totaling 1688 units our wholly owned assets. The remaining 27 assets totaling 7629 units are unconsolidated.

Validated joint ventures.

Same store revenues for our portfolio grew to $23.9 million in the current quarter, representing a 2.9% increase from $23.2 million in the 2019 quarter, whereas same store expenses rose to $11.8 million in the current quarter, representing an increase of 9.5% from two.

$10.8 million in the 2019 quarter.

Same store NOI for the portfolio decreased.

To $12.1 million in the current quarter, a decline of 2.9% from $12.4 million in the 2019 quarter.

The change in NOI was primarily due to an increase in non controllable expenses, mainly taxes and insurance as well as an increase in repairs and maintenance and repair and replacement sales. We continue to appeal taxes. When we feel that we can obtain a positive valuation.

We also believe that increases the increases in repairs and maintenance and replacement represents activity that had been deferred in the prior period due to covert during.

During the second quarter of 2020, we will not we were not able to enter many units to perform repairs or replace appliances unless absolutely necessary. This resulted in much of the work being pushed to the current quarter. When we began to gain access to units again, resulting in higher repairs maintenance and replacement expenses.

Year over year sales.

Same store rental rate for our multifamily property portfolio grew 2.1% to $1094 per unit for the current quarter from $1072 per unit for the 2019 quarter turning.

Turning to the balance sheet at September Thirtyth, 2020, we had $15.7 million of cash and cash equivalents total assets of $374.2 million total debt of $168.2 million and total stockholders' equity of $184.3 million.

And November Onest 2020, our available liquidity was approximately $35.1 million, including $15.8 million of cash and cash equivalents $9.3 million, representing restricted cash for property improvements and up to $10 million available for working capital under our credit facility.

In addition to our unconsolidated joint ventures have approximately $16.6 million of cash and cash equivalents, which is used for day to day working capital purposes at a minimum we intend to maintain one month of expense and debt service at each of our properties.

The aggregate mortgage debt for our wholly owned properties combined with our share of mortgage debt for our unconsolidated joint ventures totaled $659.5 million has a weighted average interest rate of 4.04% and a weighted average remaining term to maturity of 7.2 years.

On October 10th we paid our quarterly dividend of 22 to two cents per share, which is equivalent to an annualized yield of 7.2% based on our stock price of $12.25 as of the close of business on November 2nd 2020.

We recognize that this is a time to be cautious and we continue to actively monitor our portfolio, we remain focused and determined as a company and I am proud of the team's effort, particularly in these unusual times. We are pleased with our performance to date and we will stay diligent as we close out the year. Thanks.

Thank you for joining us today on our conference call and with that I will turn the call over to the operator for your questions operator.

Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the question queue you may.

Press Star two if you would like to remove your question from the Q.

Participants using speaker equipment, it may be necessary to pick up your handset or pressing the star Q.

One moment, please while we poll for questions.

There are no questions at this time I would like to turn the floor back over to management for any closing comments.

Thank you.

Overall summarize things are going well for BRT.

During very difficult times in the World and we're pleased with our performance to date.

As I said earlier on proud with our part of our team and thank you all for joining US today, we have any further questions feel free to call us at any time. Thank you very much.

This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation and have a great day.

Okay.

Okay.