BRT BRT Apartments Corp.

Risks

• We face numerous risks associated with the real estate industry that could adversely affect our results of operations through decreased revenues or increased costs.
• If we are unable to refinance $182.6 million in balloon payments on mortgage debt maturing through 2022, we may be forced to sell properties on disadvantageous terms.
• Most of our multi-family properties are located in a limited number of markets, which makes us susceptible to adverse developments in such markets.
• Risks involved in conducting real estate activity through joint ventures.
• The failure of third party property management companies to properly manage our properties or obtain sufficient insurance coverage could adversely impact our results of operations.
• We may not be able to compete with competitors, many of which have greater financial and other resources than we possess.
• We may incur impairment charges in 2020.
• We may not have sufficient funds to make required or desired capital improvements.
• Our transactions with affiliated entities involve conflicts of interest.
• Senior management and other key personnel are critical to our business and our future success may depend on our ability to retain them.
• We could be negatively impacted by changes in our relationship with Fannie Mae or Freddie Mac, changes in the condition of Fannie Mae or Freddie Mac and by changes in government support for multi-family housing.
• Our acquisition, development and value-add activities are limited by the funds available to us.
• Our operating results are significantly influenced by demand for multi-family properties generally, and a decrease in such demand will likely have a greater adverse effect on our revenues than if we owned a more diversified real estate portfolio.
• Increased competition and increased affordability of residential homes could limit our ability to retain our tenants or increase or maintain rents.
• Compliance with REIT requirements may hinder our ability to maximize profits.
• If we are required to make payments under any “bad boy” carve out guarantees that we have provided in connection with certain mortgages and related loans, our business and financial results could be materially adversely affected.
• Because real estate investments are illiquid, we may not be able to reconfigure our portfolio on a timely basis.
• We depend on our subsidiaries for cash flow and will be adversely impacted if these subsidiaries are prohibited from distributing cash to us.
• Liabilities relating to environmental matters may impact the value of our properties.
• Our operating results and assets may be negatively affected if our insurance coverage is insufficient to compensate us for casualty events occurring at our properties.
• Changes to the U.S. federal income tax laws, including the enactment of certain proposed tax reform measures, could have an adverse impact on our business and financial results.
• Compliance or failure to comply with the Americans with Disabilities Act of 1990 or other safety regulations and requirements could result in substantial costs.
• Breaches of information technology systems could materially harm our business and reputation.
• We could be adversely affected if we or any of our subsidiaries are required to register as an investment company under the Investment Company Act of 1940 as amended (the “1940 Act”).
• The stock market is volatile, and fluctuations in our operating results, removal from various indices and other factors could cause our stock price to decline.