BRT Apartments Corp

Company overview

Type: Real estate investment trust (REIT), internally managed
Business model: Owns, operates and, to a lesser extent, holds interests in joint ventures that own and operate multifamily properties
Primary focus: Acquisition, ownership, operation and value creation in multifamily properties (primarily garden apartments, with some mid-rise and townhome assets)
Geographic focus: Southeast United States and Texas; properties located across 11 states
Headquarters: 60 Cutter Mill Road, Suite 303, Great Neck, NY
Website: www.brtapartments.com

Consolidated (wholly owned) multifamily properties
- Number of properties: 21
- Total units: 5,420
- Carrying value (properties): $595.2 million
Unconsolidated joint venture (JV) properties
- JV properties with ownership interests: 10
- JV units: 2,891
- Carrying value of net equity investments in these JVs: $46.1 million
Preferred equity investments
- Properties: 2
- Carrying value: $17.7 million
Other assets
- Carrying value: $1.6 million
Total multifamily properties (consolidated + unconsolidated): 31
Properties located in 11 states; primary concentration in the Southeast and Texas

Acquisitions
- Acquired 80% interests in two multifamily properties (collectively 364 units)
- Aggregate purchase price: $59.5 million
- Mortgage debt included in the acquisitions: $40.1 million
- Mortgage terms on these acquisitions: 4.34% interest rate; weighted remaining term 6.6 years
Financing and debt refinancings
- Re-financed four maturing mortgages (2025–2026)
- Replacement mortgages: $87.7 million
- Weighted average fixed rate on replacements: 4.97%
- Interest-only until maturity (one mortgage partially amortizing with principal payments until 2030)
- Estimated effect: decrease in annual principal payments of $1.2 million (through 2030); annual interest expense expected to increase by $1.8 million
Dispositions
- Sold one cooperative apartment in New York, NY for approximately $1.0 million
- Gain recognized: approximately $755,000
Equity activity
- Share repurchases during 2025: 321,060 shares for approximately $5.0 million (average ~$15.53 per share)
- Post-2025 activity: purchased 75,155 shares for approximately $1.1 million (average ~$14.82 per share) after year-end
- Board action (March 2026): increased repurchase program authorization to up to $10 million and extended the program through December 31, 2028

Consolidated properties (21 properties)
- 2025 Rental and Other Revenue: $95.265 million
- Revenue by state (consolidated)
  - Tennessee: 2 properties; 702 units; $14.341 million (15%)
  - Mississippi: 2 properties; 776 units; $12.956 million (14%)
  - Alabama: 3 properties; 740 units; $11.404 million (12%)
  - Georgia: 3 properties; 688 units; $10.298 million (11%)
  - Florida: 2 properties; 518 units; $9.540 million (10%)
  - Texas: 3 properties; 600 units; $9.002 million (9%)
  - South Carolina: 2 properties; 474 units; $8.855 million (9%)
  - Virginia: 1 property; 220 units; $5.127 million (6%)
  - North Carolina: 1 property; 264 units; $4.286 million (4%)
  - Ohio: 1 property; 264 units; $4.010 million (4%)
  - Missouri: 1 property; 174 units; $3.746 million (4%)
  - Other: small non-multifamily revenue included (Yonkers, NY)
Unconsolidated JV properties
- 2025 JV Rental and Other Revenues: $49.891 million
- JV units by state:
  - Texas: 3 properties; 1,103 units; $20.514 million (41%)
  - South Carolina: 3 properties; 953 units; $18.959 million (38%)
  - Georgia: 2 properties; 421 units; $5.671 million (11%)
  - Alabama: 2 properties; 414 units; $4.747 million (10%)
Combined perspective: 2025 consolidated revenue $95.265 million and JV revenue $49.891 million

Employees
- Salaried employees: 12 (as of 12/31/2025)
- Additional support: 1 part-time individual and 1 person devoting ~50% of time; 2 individuals with salaries allocated to affiliated entities under the shared services arrangement
- Shared services: Administrative, legal, accounting and related functions provided under a shared services agreement with affiliated entities (including Gould Investors)
- Service fees for shared services: 2026 forecast $1.8 million; 2025 actual $1.7 million; 2024 actual $1.6 million
Executive leadership and governance
- Chairman of the Board: Israel Rosenzweig
- President, CEO, and Director: Jeffrey A. Gould
- Other officers include Matthew J. Gould (Senior Vice President and Director) and other senior officers; George E. Zweier served as CFO until his resignation effective February 27, 2026
- The board has staggered terms and the charter and Maryland law include anti-takeover provisions and ownership limitations to maintain REIT status
Property management and operations
- Day-to-day property management is outsourced to local property management companies
- Property management fees typically range from 2% to 4% of property revenues
- Several properties are managed by managers affiliated with joint venture partners
- Insurance: properties are covered by master or blanket policies, with some exposure to uninsured losses for certain properties

Debt and leverage (as of 12/31/2025)
- Fixed-rate debt predominates for 19 of 21 wholly owned properties; two remaining wholly owned properties are pledged to the credit facility
- Consolidated mortgage debt: weighted average interest rate 4.22%; weighted average remaining term 6.3 years
- Unconsolidated JV debt: fixed-rate debt with weighted average interest rate 4.21% and weighted average remaining term 3.3 years
Principal payments schedule (consolidated and unconsolidated)
- 2026: $96.662 million total principal payments due (Consolidated $32.170 million; Unconsolidated $64.492 million)
- 2027: $72.491 million
- 2028: $109.771 million
- 2029: $58.182 million
- 2030: $24.294 million
- Thereafter: $403.135 million
Liquidity
- As of February 27, 2026 (post-2025 year-end), cash and cash equivalents: approximately $24.8 million
- Available capacity: up to $40 million under the company’s credit facility (as of that date)
Risk context
- The company emphasizes fixed-rate debt to manage interest rate risk and faces potential refinancing risk if prevailing rates remain higher
- Regional concentration in the Southeast and Texas increases sensitivity to local economic and market cycles
- The portfolio targets value-add opportunities and may require substantial capital expenditures; funding depends on access to debt and equity markets
- REIT compliance and related ownership and distribution requirements remain governance priorities

Acquisition approach
- Focuses on acquisitions in the Southeast and Texas, often using joint ventures with partners experienced in target markets
- Prefers Class B or better properties with potential for stable cash flow and value creation via repositioning
Joint ventures
- JV agreements typically feature preferred returns (8–10% on unreturned capital contributions) and a mandatory return to investors before shared profits
- JV structures may limit certain rights and include buy-sell provisions
Development and scale
- Pursues development opportunities with partners but does not expect development properties to represent a large portion of the portfolio
Environmental, regulatory and governance considerations
- Addresses ADA compliance, environmental liability considerations and climate-related risk
- Charter and Maryland General Corporation Law provisions shape ownership limits and governance mechanisms