# BRT Apartments Corp. (BRT)

Informational only - not investment advice.

CIK: 0000014846
SIC: 6798 Real Estate Investment Trusts
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Holding And Other Investment Offices](/major-group/67/) > [SIC 6798 Real Estate Investment Trusts](/industry/6798/)
Latest 10-K filed: 2026-03-13
SEC page: https://www.sec.gov/edgar/browse/?CIK=14846
Filing source: https://www.sec.gov/Archives/edgar/data/14846/000001484626000007/brt-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-13 · accession 0000014846-26-000007 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000014846.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 97,028,000 USD | 2025 | verified |
| Net income | -11,946,000 USD | 2025 | verified |
| Assets | 709,813,000 USD | 2025 | verified |
| Net margin | -12.31% | 2025 | computed |
| Operating margin | -12.88% | 2025 | computed |
| Revenue YoY | +1.46% | 2025 | computed |
| ROE | -6.74% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | BRT | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | -12.3% | 16.8% | 11 | 149 |
| Operating margin | -12.9% | 23.2% | 2 | 66 |
| Revenue growth | 1.5% | 3.7% | 39 | 149 |
| ROE | -6.7% | 5.7% | 11 | 151 |
| ROA | -1.7% | 1.5% | 11 | 155 |
| Liabilities / equity | 3.01 | 1.48 | 72 | 151 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6798 Real Estate Investment Trusts, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 97028000 | USD | 2025 | 2026-03-13 |
| Net income | -11946000 | USD | 2025 | 2026-03-13 |
| Assets | 709813000 | USD | 2025 | 2026-03-13 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000014846.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 98,521,000 | 105,771,000 |  | 27,761,000 | 28,102,000 | 32,057,000 | 70,527,000 | 93,617,000 | 95,630,000 | 97,028,000 |
| Net income | 31,289,000 | 13,600,000 | 25,495,000 | 856,000 | -19,862,000 | 29,114,000 | 49,955,000 | 3,873,000 | -9,791,000 | -11,946,000 |
| Operating income | -9,137,000 | -13,566,000 | -8,015,000 | -8,374,000 | -13,460,000 | -10,068,000 | -15,011,000 | -14,282,000 | -12,312,000 | -12,496,000 |
| Diluted EPS | 2.23 | 0.97 | 1.68 | 0.05 | -1.16 | 1.62 | 2.66 | 0.16 | -0.52 | -0.63 |
| Operating cash flow | 10,080,000 | 13,091,000 | 27,002,000 | 8,648,000 | -1,755,000 | -529,000 | 15,450,000 | 19,606,000 | 24,143,000 | 14,098,000 |
| Dividends paid | 11,463,000 | 0.00 | 12,088,000 | 13,468,000 | 15,116,000 | 15,769,000 | 17,863,000 | 18,909,000 | 18,639,000 | 18,894,000 |
| Share buybacks | 2,115,000 | 193,000 | 162,000 | 46,000 | 616,000 | 0.00 | 0.00 | 14,399,000 | 3,495,000 | 4,987,000 |
| Assets | 874,899,000 | 993,897,000 | 394,990,000 | 390,610,000 | 365,741,000 | 459,538,000 | 732,616,000 | 709,963,000 | 713,463,000 | 709,813,000 |
| Liabilities | 673,223,000 | 757,192,000 | 191,171,000 | 191,050,000 | 188,053,000 | 256,587,000 | 482,546,000 | 481,518,000 | 508,549,000 | 532,613,000 |
| Stockholders' equity | 151,290,000 | 165,996,000 | 203,488,000 | 199,653,000 | 177,772,000 | 202,956,000 | 250,088,000 | 228,460,000 | 204,969,000 | 177,242,000 |
| Cash and cash equivalents | 27,399,000 | 12,383,000 | 23,539,000 | 22,699,000 | 19,885,000 | 32,339,000 | 20,281,000 | 23,512,000 | 27,856,000 | 25,138,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 31.76% | 12.86% |  | 3.08% | -70.68% | 90.82% | 70.83% | 4.14% | -10.24% | -12.31% |
| Operating margin | -9.27% | -12.83% |  | -30.16% | -47.90% | -31.41% | -21.28% | -15.26% | -12.87% | -12.88% |
| Return on equity | 20.68% | 8.19% | 12.53% | 0.43% | -11.17% | 14.34% | 19.97% | 1.70% | -4.78% | -6.74% |
| Return on assets | 3.58% | 1.37% | 6.45% | 0.22% | -5.43% | 6.34% | 6.82% | 0.55% | -1.37% | -1.68% |
| Liabilities / equity | 4.45 | 4.56 | 0.94 | 0.96 | 1.06 | 1.26 | 1.93 | 2.11 | 2.48 | 3.01 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/BRT/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-10. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000014846.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q2 | 2022-06-30 |  |  | 1.91 | reported discrete quarter |
| 2022-Q3 | 2022-09-30 |  |  | 0.37 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | -0.21 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.58 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 23,852,000 | -1,494,000 | -0.08 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 23,508,000 | -1,737,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 23,403,000 | -3,171,000 | -0.17 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 23,862,000 | -2,345,000 | -0.13 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 24,396,000 | -2,205,000 | -0.12 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 23,969,000 | -2,070,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 24,106,000 | -2,352,000 | -0.12 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 24,197,000 | -2,566,000 | -0.14 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 24,434,000 | -2,707,000 | -0.14 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 24,291,000 | -4,321,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 24,605,000 | -2,682,000 | -0.14 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 24,474,000 | -3,221,000 |  | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/14846/000001484626000037/brt-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-10
Report date: 2026-06-30

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statement Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q (the "Quarterly Report"), together with other statements and information publicly disseminated by us, contains certain forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends concerning matters that are not historical facts. Forward looking statements are generally identifiable by use of words such as "may," "will," "will likely result," "shall," "should," "could," "believe," "expect," "intend," "anticipate," "estimate," "project," "apparent," "experiencing," or similar expressions or variations thereof.

Forward-looking statements contained in this Quarterly Report are based on our beliefs, assumptions and expectations of our future performance taking into account the information currently available to us. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or within our control, and which could materially affect actual results, performance or achievements. Factors which may cause actual results to vary from our forward-looking statements include, but are not limited to:

•inability to generate sufficient cash flows due to unfavorable economic and market conditions (e.g., inflation, volatile interest rates and the possibility of a recession), changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws or other factors;

•adverse changes in real estate markets, including, but not limited to, the extent of future demand for multifamily units in our significant markets, barriers of entry into new markets which we may seek to enter in the future, limitations on our ability to maintain or increase rental or occupancy rates, competition, our ability to identify and consummate attractive acquisitions and dispositions on favorable terms, and our ability to reinvest sale proceeds in a manner that generates favorable returns;

•general and local real estate conditions, including any changes in the value of our real estate;

•decreasing rental rates or increasing vacancy rates;

•challenges in acquiring or investing in multifamily properties (including challenges in (i) buying properties directly without the participation of joint venture partners and (ii) making alternative investments in multifamily properties, and the limited number of multifamily property investment/acquisition opportunities available to us), which transactions may not be completed or may not produce the cash flows or income expected;

•the competitive environment in which we operate, including competition that could adversely affect our ability to acquire properties and/or limit our ability to lease apartments or increase or maintain rental rates;

•exposure to risks inherent in investments in a single industry and sector;

•the concentration of our multifamily properties in the Southeastern United States and Texas, which makes us more susceptible to adverse developments in those markets;

•increases in expenses over which we have limited control, such as real estate taxes, insurance and utilities, due to inflation or other factors such as the ongoing conflicts between (i) Ukraine and Russia and (ii) Israel / the United States of America and Iran;

•impairment in the value of real estate we own;

•failure of property managers to properly manage properties;

•accessibility of debt and equity capital markets;

•disagreements with, or misconduct by, joint venture partners;

•inability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures due to the level and volatility of interest or capitalization rates or capital market conditions

•extreme weather and natural disasters such as hurricanes, tornadoes and floods;

•lack of or insufficient amounts of insurance to cover, among other things, losses from catastrophes;

•risks associated with acquiring value-add multifamily properties, which involves greater risks than more conservative approaches;

•the condition of Fannie Mae or Freddie Mac, which could adversely impact us;

•changes in Federal, state and local governmental laws and regulations, including laws and regulations relating to taxes and real estate and related investments;

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•our failure to comply with laws, including those requiring access to our properties by disabled persons, which could result in substantial costs;

•board determinations as to timing and payment of dividends, if any, and our ability or willingness to pay future dividends;

•our ability to satisfy the complex rules required to maintain our qualification as a REIT for federal income tax purposes;

•possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us or a subsidiary owned by us or acquired by us;

•our dependence on information systems, risks associated with breaches of such systems and the impact on us and our competitors from the use of artificial intelligence;

•disease outbreaks and other public health events, and measures that are taken by federal, state, and local governmental authorities in response to such outbreaks and events;

•impact of climate change on our properties or operations;

•risks associated with the stock ownership restrictions of the Internal Revenue Code of 1986, as amended (the "Code") for REITs and the stock ownership limit imposed by our charter; and

•the other factors described in our Annual Report on Form 10-K for the year ended December 31, 2025 (the "Annual Report") including those set forth in such report under the captions "Item 1. Business," "Item 1A. Risk Factors," and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations".

We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this report. Except to the extent otherwise required by applicable law or regulation, we undertake no obligation to update these forward-looking statements to reflect events or circumstances after the filing of this report or to reflect the occurrence of unanticipated events thereafter.

Overview

We own and operate multifamily properties. These properties may be wholly owned by us or by unconsolidated joint ventures in which we contributed a portion of the equity. At June 30, 2026, we: (i) wholly-own 21 multifamily properties with an aggregate of 5,420 units and a carrying value of $585.3 million; (ii) have ownership interests, through unconsolidated entities, in ten multifamily properties with 2,891 units and a carrying value of $43.3 million; (iii) have preferred equity interests in two multifamily properties with a carrying value of $17.8 million; and (iv) own other assets, through consolidated and unconsolidated subsidiaries, with a carrying value of $1.5 million. The 31 multifamily properties are located in 11 states; most of these properties are located in the Southeast United States and Texas.

Contemplated Acquisitions

On June 2, 2026, we entered into an agreement to acquire Ranch Lake Apartments, a 336-unit multifamily property located in Bradenton, Florida. The purchase price is approximately $80 million (subject to customary closing purchase price adjustments), including the assumption of an approximately $45.7 million mortgage insured by the United States Department of Housing and Urban Development ("HUD"). The mortgage carries an interest rate of 2.91% and matures in 2056. The completion of the transaction, which is anticipated to close in the first quarter of 2027, is subject to, among other things, HUD and lender approval of the mortgage assumption, and other customary closing conditions. Based on information provided by the seller (which information has not been audited or reviewed by our independent auditors), the revenues for this property were approximately $1.8 million and $7.4 million for the three and twelve months ended April 30, 2026, respectively, and the real estate operating expenses were $765,000 and $3.2 million, respectively. See Notes 5 to our consolidated financial statements.

We anticipate that in August 2026, we will acquire, through a joint venture in which we anticipate having a 70% interest, a multifamily property located in Houston, Texas for approximately $33 million; the venture anticipates funding the purchase price in part by obtaining an approximate $23.4 million mortgage which will mature in 2033 and will carry a currently estimated annual interest rate of 5.5%. We anticipate contributing approximately $8.8 million of the equity toward the purchase, including $1.9 million of working capital reserves, and incurring an estimated $450,000 of transaction costs and $700,000 in deferred financing costs, which costs will be amortized over time. We can provide no assurance that this transaction will be completed on the terms or time frame indicated or that it will be accretive to earnings.

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Completed and Contemplated Refinancings

On June 9, 2026, the Stono Oaks joint venture exercised its right to extend the maturity of its $37.2 million, 5.83% floating interest rate construction loan through June 9, 2027. Such venture is also entitled, subject to the satisfaction of certain conditions, to further extend the loan maturity through June 2028.

In July 2026, we refinanced the maturing mortgage of $27.8 million (bearing an interest rate of 3.73%) on our Civic Center 2 - Southaven, MS property with a new mortgage of $47.9 million; such mortgage debt matures in August 2036, bears a fixed interest rate of 5.38% and is interest only through maturity (the "Civic 2 Refinancing").

During the quarter ending September 30, 2026, we have a maturing mortgage principal amount of $23.7 million and bearing an interest rate of 3.97%. We anticipate that (i) we will refinance this mortgage (the "Contemplated Refinancing") by obtaining new mortgage debt of approximately $27.2 million, (ii) the new debt will mature in 2036 and (iii) will carry a fixed interest rate of approximately 5.45%. We can provide no assurance that this refinancing will be completed or if completed will be on the indicated terms.

The Civic 2 Refinancing and Contemplated Refinancings are expected to result in a $23.6 million increase in mortgage debt and an increase in the respective weighted average interest rate from the current 4.21% to an estimated weighted average interest rate of 4.35%. As a result, our quarterly interest expense is anticipated to increase by approximately $480,000 per quarter (including $99,000 from unconsolidated joint ventures).

Challenges and Uncertainties

We face challenges due to the uncertain national economic environment (e.g., the possibility of inflation, recession and/or stagflation, the potential impact of tariffs and trade wars, and/or volatile interest rates), and the oversupply of multifamily properties in several markets in which we compete (including Atlanta, GA, Huntsville, AL, Dallas, TX, San Antonio, TX, Nashville TN, Pensacola, FL, LaGrange, GA and San Marcos, TX). In addition, we use concessions (and in particular, in markets that are especially competitive) as a means to improve occupancy. The use of concessions reduces our rental income and ma

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/14846/000001484626000007/brt-20251231.htm
Complete FY 2025 MD&A: /company/BRT/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-03-13
Report date: 2025-12-31

Item 7.    Management's Discussion and Analysis of Financial Condition and Results of Operations.

Overview

We are an internally managed real estate investment trust, also known as a REIT, that owns, operates and to a lesser extent holds interest in joint ventures that own and operate multi-family properties. At December 31, 2025, we: (i) wholly-own 21 multi-family properties with an aggregate of 5,420 units and a carrying value of $595.2 million, (ii) have ownership interests, through unconsolidated entities, in ten multi-family properties with an aggregate of 2,891 units with a carrying value of $46.1 million; (iii) have preferred equity investments in two multi-family properties with a carrying value of $17.7 million; and (iv) own other assets, through consolidated and unconsolidated entities, with a carrying value of $1.6 million. The 31 multi-family properties are located in 11 states; primarily in the Southeast United States and Texas.

2025 and Recent Developments.

During 2025:

•we acquired, through two unconsolidated joint ventures in two separate and unrelated transactions, an 80% interest in two multi-family properties (referred to collectively as the "2025 Acquisitions") with an aggregate of 364 units for an aggregate purchase price of $59.5 million, including $40.1 million of mortgage debt. The mortgage debt bears a weighted average interest rate of 4.34% and a weighted average remaining term to maturity of 6.6 years.

.

•we refinanced four mortgages maturing in 2025 and 2026 in aggregate principal amount of $58.0 million (the “Prior Mortgages”) and bearing a weighted average fixed interest rate of 4.38% with four replacement mortgages in aggregate principal amount $87.7 million (the "2025 Financings"). The replacement mortgages (the “Replacement Mortgages”) have a weighted average remaining term to maturity of 8.5 years, a weighted average fixed interest rate of 4.97%, and unlike the Prior Mortgages, are interest only until maturity (other than with respect to a mortgage in principal amount of $15.8 million, which is interest only until 2030, one year prior to its maturity). As a result of the 2025 Financing, our aggregate annual principal payments are expected to decrease by $1.2 million (until 2030), and our annual interest expense is expected to increase by $1.8 million from the corresponding amounts under the Prior Mortgages.

•we sold a cooperative apartment unit in New York, NY for a sales price of approximately $1.0 million and recognized a gain of $755,000.

•we repurchased 321,060 shares of our common stock for an aggregate purchase price of approximately $4.99 million (i.e., an average purchase price of $15.53 per share).

Subsequent to December 31, 2025, we purchased 75,155 shares of our common stock for an aggregate purchase price of approximately $1.1 million (i.e., an average price of $14.82 per share). In March 2026, our board of directors increased up to $10 million the value of the shares that we can repurchase and extended the repurchase program through December 31, 2028.

Challenges and Uncertainties as a Result of the Uncertain Economic Environment

We face challenges due to the uncertain national economic environment (e.g., inflation, recession and/or stagflation, the potential impact of tariffs and trade wars, and/or interest rates), and the oversupply of multi-family properties in several markets in which we compete (including Atlanta, GA, Huntsville, AL, Dallas, TX, San Antonio, TX, Nashville TN, Pensacola, FL, LaGrange, GA and San Marcos, TX). In addition, we use concessions (and in particular, in markets that are especially competitive) as a means to improve occupancy. The use of concessions reduces our rental income and adds to the variability of our operating results. These challenges and uncertainties have, and we anticipate will continue to adversely impact (i) the rental and occupancy rates at our properties, and (ii) our ability to grow rental income and/or control our real estate operating expenses, some of which, such as real estate taxes, we have a very limited ability to control and frequently increase, with limited notice of the increase.

We anticipate that our mortgage interest expense will increase as we refinance the aggregate $154.6 million of principal balances of mortgage debt maturing through 2027 (including $84.0 million of such principal balances at unconsolidated subsidiaries) because current comparable mortgage interest rates are generally higher than the weighted average interest rate on such maturing mortgages. For comparison purposes, the weighted average interest rate on the mortgages on our consolidated and unconsolidated properties maturing through December 31, 2027 is 4.43% and the weighted average interest rate on the 2025 Financings that were completed in December 2025 was 4.97%.

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Results of Operations

Comparison of Years Ended December 31, 2025 and 2024

The term "same store properties" refers to 21 multi-family properties with an aggregate of 5,420 units that were owned for all of 2025 and 2024.

Revenues

The following table compares our revenues for the years indicated:

[[GREPCENT_TABLE]]
[["(Dollars in thousands):","","2025","","2024","","Change","","% Change"],["Rental and other revenue from real estate properties","","$","95,265","","","$","94,773","","","$","492","","","0.5","%"],["Loan interest and other income","","1,763","","","857","","","906","","","105.7","%"],["Total revenues","","$","97,028","","","$","95,630","","","$","1,398","","","1.5","%"]]
[[/GREPCENT_TABLE]]

Rental and other revenue from real estate properties  

The components of the increase include:

•$510,000 due to a 0.74% net increase in average rental rates year-over-year,

•$261,000 due to an increase in average occupancy year-over-year from 93.8% to 93.9%,

•$149,000 in other rental income (tenant reimbursements such as trash and utilities); and

•$114,000 increase at our commercial property in Yonkers, NY (the "Yonkers' Property") due to an increase in the rental rate obtained in connection with a lease extension.

The increase was offset primarily by a $532,000 decrease in revenue recognized from straight line adjustments of rent concessions, net of amortization, with approximately 50% related to Bells Bluff.

Loan interest and other income

The $1 million increase is due primarily to the inclusion, for all of 2025, of the income earned from the Preferred Equity Investments originated in the fourth quarter of 2024.

Expenses

The following table compares our expenses for the periods indicated:

[[GREPCENT_TABLE]]
[["(Dollars in thousands)","","2025","","2024","","Change","","% Change"],["Real estate operating expenses","","$","44,082","","","$","43,555","","","$","527","","","1.2","%"],["Interest expense","","23,511","","","22,596","","","915","","","4.0","%"],["General and administrative","","15,530","","","15,595","","","(65)","","","(0.4)","%"],["Provision for credit loss","","5","","","270","","","(265)","","","(98.1)","%"],["Depreciation and amortization","","26,396","","","25,926","","","470","","","1.8","%"],["Total expenses","","$","109,524","","","$","107,942","","","$","1,582","","","1.5","%"]]
[[/GREPCENT_TABLE]]

Real estate operating expenses.  

The components of the increase include:

•increases of $564,000 and $476,000 in payroll and utilities (primarily water/sewer charges), respectively, at several properties;

•$354,000 increase in other expenses, including $100,000 related to advertising and $90,000 related to a loan modification; and

•a net $255,000 increase in real estate taxes at several properties.

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Offsetting the change was a $927,000 decrease in insurance expense due to reduced premiums in 2025 (and we estimate that 2026 insurance premiums will be approximately $500,000 less in 2026 than in 2025) and a $221,000 reduction in repairs and maintenance expenses.

Interest expense

Approximately $1 million of the increase is due to the $27.4 million mortgage obtained in August 2024 on Woodland Trails-La Grange, GA (the "Woodlands Financing"), $318,000 due to the 2025 Financings, and $237,000 due to increased draws on the credit facility. The increase was offset by a $375,000 decrease on our floating rate junior subordinated notes due to the decrease in SOFR and a $275,000 decrease of mortgage interest due to the impact of amortization of mortgage principal amounts.

General and administrative.

The components of the decrease include $521,000 due to the reduction in the number of employees and the inclusion, in 2024, of $141,000 of expense related to the vesting of restricted stock units that vest based on the satisfaction of metrics related to adjusted funds from operations (the "AFFO Awards"); no expense was recorded with respect to the AFFO Awards outstanding in 2025 as such awards are not expected to vest. The decrease was offset due to a (i) $272,000 increase in internal and external audit costs, including approximately $100,000 in out of scope audit costs expensed in 2025 for the 2024 audit, and (ii) $294,000 increase due to higher levels of employee compensation.

Provision for credit loss

In 2025, we recorded a non-cash provision of $5,000 related to the Loan Receivables (i.e. the Preferred Equity Investments) in comparison to $270,000 recorded in 2024.

Depreciation and amortization

The increase is related to property improvements in 2025 and 2024.

Equity in earnings of unconsolidated joint ventures

Equity in earnings from unconsolidated joint ventures decreased $1.8 million, from $1.6 million in 2024, to a loss of $174,000 for the year ended December 31, 2025. The components of the decrease include:

•$1.5 million from the 2025 Acquisitions, primarily due to the amortization of the lease intangibles acquired in such transactions. We estimate that through the quarter ending September 30, 2026, approximately $1 million of expense will be recognized in connection with the amortization of these intangibles.

•$408,000 at same store properties, due to a decrease in operating margins (i.e.,a decrease in rental revenues, a decrease in straight-line rent adjustments of rent concessions, net of amortization, and an increase in operating expense primarily due to increased payroll and repairs and maintenance expense).

Insurance recovery of casualty loss

During 2025, we received an aggregate of $313,000 from insurance recoveries primarily related to the Silvana Oaks and Avalon properties. There were no comparable recoveries in 2024.

Gain on sale of real estate

In 2025, we sold a cooperative apartment in New York for a sales price of $995,000 and a gain of $755,000. In 2024, we sold a cooperative apartment in NY for a sales price of approximately $1.1 million and a gain of $806,000.

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Provision (benefit) for taxes

Income tax provision for 2025 was $174,000, a $400,000 increase from the $226,000 benefit recorded in 2024. The benefit recorded in 2024 is the result of a $534,000 refund of franchise tax received as a result of a change in Tennessee law, offset by the 2024 estimated state tax expense of $318,000.

Comparison of Years Ended December 31, 2024 and 2023

As we are a smaller reporting company, this comparison is omitted in accordance with Instruction 1 to Item 303(a) of Regulation S-K.

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Funds from Operations; Adjusted Funds from Operations; Net Operating Income.

In view of our multi-family property activities, we disclose funds from operations ("FFO"), adjusted funds from operations ("AFFO") and net operating income ("NOI") because we believe that such metrics are a widely recognized and appropriate measure of the performance of a multi-family REIT.

We compute FFO in accordance with the "White Paper on Funds From Operations" issued by the National Association of Real Estate Investment Trusts ("NAREIT") and NAREITs related guidance. FFO is defined in the White Paper as net income (calcul

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/BRT/mda/fy2025/
All MD&A years: /company/BRT/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/BRT/mda/fy2024/): filed 2025-03-12; accession 0000014846-25-000005 (https://www.sec.gov/Archives/edgar/data/14846/000001484625000005/brt-20241231.htm)
- [FY 2023 MD&A](/company/BRT/mda/fy2023/): filed 2024-03-14; accession 0000014846-24-000019 (https://www.sec.gov/Archives/edgar/data/14846/000001484624000019/brt-20231231.htm)
- [FY 2022 MD&A](/company/BRT/mda/fy2022/): filed 2023-03-15; accession 0000014846-23-000005 (https://www.sec.gov/Archives/edgar/data/14846/000001484623000005/brt-20221231.htm)
- [FY 2021 MD&A](/company/BRT/mda/fy2021/): filed 2022-03-16; accession 0000014846-22-000010 (https://www.sec.gov/Archives/edgar/data/14846/000001484622000010/brt-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6798 Real Estate Investment Trusts) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/BRT.md · JSON record: /company/BRT.json · verified financials: /company/BRT/financials.json / /company/BRT/financials.csv · machine TOC for the whole site: /llms.txt