Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2018 | Feb. 02, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | BRT APARTMENTS CORP. | |
Entity Central Index Key | 14,846 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 15,900,395 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | |
ASSETS | |||
Real estate properties, net of accumulated depreciation and amortization of $91,715 and $85,724 | $ 1,029,239 | $ 1,020,874 | |
Real estate loan | 4,750 | 4,900 | |
Cash and cash equivalents | 32,428 | 27,360 | |
Restricted cash | 8,180 | 6,686 | |
Deposits and escrows | 21,268 | 24,458 | |
Investments in unconsolidated joint ventures | 19,758 | 20,078 | |
Other assets | 8,084 | 10,080 | |
Real estate property held for sale | 0 | 38,928 | |
Total Assets | [1] | 1,123,707 | 1,153,364 |
Liabilities: | |||
Mortgages payable, net of deferred costs of $6,289 and $6,373 | 771,817 | 792,432 | |
Junior subordinated notes, net of deferred costs of $357 and $362 | 37,043 | 37,038 | |
Accounts payable and accrued liabilities | 24,487 | 27,409 | |
Total Liabilities | [1] | 833,347 | 856,879 |
Commitments and contingencies | |||
BRT Apartments Corp. stockholders' equity: | |||
Preferred shares $.01 par value 2,000 shares authorized, none outstanding | 0 | 0 | |
Common stock, $.01 par value, 300,000 shares authorized; 15,038 and 15,048 shares outstanding | 150 | 150 | |
Additional paid-in capital | 216,981 | 220,135 | |
Accumulated other comprehensive income | 1,688 | 2,629 | |
Accumulated deficit | (20,044) | (24,927) | |
Total BRT Apartments Corp. stockholders’ equity | 198,775 | 197,987 | |
Non-controlling interests | 91,585 | 98,498 | |
Total Equity | 290,360 | 296,485 | |
Total Liabilities and Equity | $ 1,123,707 | $ 1,153,364 | |
[1] | The Company's consolidated balance sheets include the assets and liabilities of consolidated variable interest entities (VIEs). See note 6. The consolidated balance sheets include the following amounts related to the Company's VIEs as of December 31, 2018 and September 30, 2018, respectively: $584,074 and $586,623 of real estate properties, $5,207 and $6,699 of cash and cash equivalents, $11,705 and $11,837 of deposits and escrows, $6,302 and $6,781 of other assets, $0 and $38,928 of real estate properties held for sale, $446,749 and $481,569 of mortgages payable, net of deferred costs and $11,816 and $12,841 of accounts payable and accrued liabilities. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Debt Instrument [Line Items] | ||
Real estate accumulated depreciation | $ 91,715 | $ 85,724 |
Mortgage payable and junior subordinated notes, deferred costs | $ 6,646 | $ 6,735 |
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares, authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred shares, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, outstanding (in shares) | 15,038,000 | 15,048,000 |
Mortgages payable | ||
Debt Instrument [Line Items] | ||
Mortgage payable and junior subordinated notes, deferred costs | $ 6,289 | $ 6,373 |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Mortgage payable and junior subordinated notes, deferred costs | $ 357 | $ 362 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | ||
Rental and other revenues from real estate properties | $ 31,216 | $ 28,162 |
Other income | 223 | 187 |
Total revenues | 31,439 | 28,349 |
Expenses: | ||
Real estate operating expenses - including $915 and $785 to related parties | 15,224 | 13,347 |
Interest expense | 8,946 | 7,980 |
General and administrative - including $116 and $81 to related parties | 2,476 | 2,303 |
Depreciation | 10,192 | 8,648 |
Total expenses | 36,838 | 32,278 |
Total revenue less total expenses | (5,399) | (3,929) |
Equity in loss of unconsolidated joint ventures | (125) | (25) |
Gain on sale of real estate | 19,514 | 12,519 |
Gain on insurance recoveries | 1,585 | 0 |
Loss on extinguishment of debt | (207) | (257) |
Income from continuing operations | 15,368 | 8,308 |
Income tax provision | 58 | 106 |
Net income from continuing operations, net of taxes | 15,310 | 8,202 |
Net income attributable to non-controlling interests | (7,237) | (1,851) |
Net income attributable to common stockholders | $ 8,073 | $ 6,351 |
Weighted average number of shares of common stock outstanding: | ||
Basic (in shares) | 15,744,233 | 14,022,438 |
Diluted (in shares) | 15,944,233 | 14,222,438 |
Per share amounts attributable to common stockholders: | ||
Basic (in dollars per share) | $ 0.51 | $ 0.45 |
Diluted (in dollars per share) | $ 0.51 | $ 0.45 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Related party - real estate operating expenses | $ 915 | $ 785 |
Related party - general and administrative | $ 116 | $ 81 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 15,310 | $ 8,202 |
Other comprehensive income: | ||
Unrealized (loss) gain on derivative instruments | (1,359) | 502 |
Other comprehensive (loss) income | (1,359) | 502 |
Comprehensive income | 13,951 | 8,704 |
Comprehensive (income) attributable to non-controlling interests | (6,819) | (2,007) |
Comprehensive income attributable to common stockholders | $ 7,132 | $ 6,697 |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY - USD ($) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit | Non- Controlling Interest |
Beginning balance at Sep. 30, 2017 | $ 236,705,000 | $ 133,000 | $ 201,910,000 | $ 1,000,000 | $ (37,047,000) | $ 70,709,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Distributions - common stock - $0.20 per share in 2018, $0.18 per share in 2017 | (2,596,000) | (2,596,000) | ||||
Compensation expense - restricted stock and restricted stock units | 315,000 | 315,000 | ||||
Contributions from non-controlling interests | 4,535,000 | 4,535,000 | ||||
Distributions to non-controlling interests | (4,316,000) | (4,316,000) | ||||
Net income | 8,202,000 | 6,351,000 | 1,851,000 | |||
Other comprehensive income | 502,000 | 346,000 | 156,000 | |||
Comprehensive income | 8,704,000 | |||||
Ending balance at Dec. 31, 2017 | 243,347,000 | 133,000 | 202,225,000 | 1,346,000 | (33,292,000) | 72,935,000 |
Beginning balance at Sep. 30, 2018 | 296,485,000 | 150,000 | 220,135,000 | 2,629,000 | (24,927,000) | 98,498,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Distributions - common stock - $0.20 per share in 2018, $0.18 per share in 2017 | (3,190,000) | (3,190,000) | ||||
Compensation expense - restricted stock and restricted stock units | 323,000 | 323,000 | ||||
Contributions from non-controlling interests | 1,435,000 | 1,435,000 | ||||
Distributions to non-controlling interests | (15,070,000) | (15,070,000) | ||||
Purchase of non-controlling interest | (3,454,000) | (3,357,000) | (97,000) | |||
Shares repurchased - 10,274 shares | 120,473 | 120,000 | ||||
Net income | 15,310,000 | 8,073,000 | 7,237,000 | |||
Other comprehensive income | (1,359,000) | (941,000) | (418,000) | |||
Comprehensive income | 13,951,000 | |||||
Ending balance at Dec. 31, 2018 | $ 290,360,000 | $ 150,000 | $ 216,981,000 | $ 1,688,000 | $ (20,044,000) | $ 91,585,000 |
CONSOLIDATED STATEMENT OF EQU_2
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.20 | $ 0.18 |
Shares repurchased (in shares) | 10,274 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 15,310 | $ 8,202 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 10,192 | 8,648 |
Amortization of deferred borrowing fees | 178 | 364 |
Amortization of restricted stock and restricted stock units | 323 | 315 |
Equity in loss of unconsolidated joint ventures | 125 | 25 |
Gain on sale of real estate | (19,514) | (12,519) |
Gain on insurance recovery | (1,585) | 0 |
Loss on extinguishment of debt | 207 | 257 |
Distributions from equity earnings of unconsolidated joint ventures | 0 | 36 |
Increases and decreases from changes in other assets and liabilities: | ||
Decrease in deposits and escrows | 3,190 | 4,209 |
Decrease in other assets | 2,212 | 930 |
Decrease in accounts payable and accrued liabilities | (2,962) | (2,066) |
Net cash provided by operating activities | 7,676 | 8,401 |
Cash flows from investing activities: | ||
Collections from real estate loan | 150 | 150 |
Additions to real estate properties | (48,756) | (36,910) |
Improvements to real estate properties | (3,093) | (1,610) |
Purchase of non-controlling interests | (3,444) | 0 |
Net proceeds from the sale of real estate properties | 91,887 | 21,790 |
Distributions from unconsolidated joint ventures | 195 | 239 |
Net cash provided by (used in) investing activities | 36,939 | (16,341) |
Cash flows from financing activities: | ||
Proceeds from mortgages payable | 37,040 | 24,470 |
Mortgage payoffs | (56,580) | (9,290) |
Mortgage principal payments | (1,366) | (1,328) |
Increase in deferred financing costs | (242) | (380) |
Dividends paid | (3,150) | (2,524) |
Contributions from non-controlling interests | 1,435 | 4,535 |
Distributions to non-controlling interests | (15,070) | (4,316) |
Repurchase of shares of common stock | (120) | 0 |
Net cash (used in) provided by financing activities | (38,053) | 11,167 |
Net increase in cash, cash equivalents and restricted cash | 6,562 | 3,227 |
Cash, cash equivalents and restricted cash at beginning of period | 34,046 | 18,534 |
Cash, cash equivalents and restricted cash at end of period | 40,608 | 21,761 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest, net of capitalized interest of $27 and $249, respectively | 9,063 | 7,605 |
Taxes paid | $ 39 | $ 25 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Cash Flows [Abstract] | ||
Capitalized interest | $ 299,000 | $ 0 |
Organization and Background
Organization and Background | 3 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Background | Organization and Background BRT Apartments Corp. (the "Company"), a Maryland corporation, owns, operates and develops multi-family properties. The Company conducts its operations to qualify as a real estate investment trust, or REIT, for federal income tax purposes. Generally, the multi-family properties are acquired with joint venture partners in transactions in which the Company contributes a significant portion of the equity. At December 31, 2018, the Company owns: (a) 35 multi-family properties with 9,696 units (including 402 units at a property under development), located in 11 states with a carrying value of $1,018,874,000; and (b) interests in three unconsolidated multi-family joint ventures with 687 units (including 339 units in lease-up) located in two states with a carrying value of $19,635,000. |
Basis of Preparation
Basis of Preparation | 3 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | Basis of Preparation The accompanying interim unaudited consolidated financial statements as of December 31, 2018, and for the three months ended December 31, 2018 and 2017, reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results for such interim periods. The results of operations for the three months ended December 31, 2018 and 2017, are not necessarily indicative of the results for the full year. The consolidated balance sheet as of September 30, 2018, has been derived from the audited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States ("GAAP") for complete financial statements. The consolidated financial statements include the accounts and operations of the Company, its wholly owned subsidiaries, and its majority owned or controlled real estate entities and its interests in variable interest entities ("VIEs") in which the Company is determined to be the primary beneficiary. Material intercompany balances and transactions have been eliminated. The Company’s consolidated joint ventures that own multi-family properties were determined to be VIEs because the voting rights of some equity investors in the applicable joint venture entity are not proportional to their obligations to absorb the expected losses of the entity and their right to receive the expected residual returns. It was determined that the Company is the primary beneficiary of these joint ventures because it has a controlling interest in that it has the power to direct the activities of the VIE that most significantly impact the entity's economic performance and it has the obligation to absorb losses of the entity and the right to receive benefits that could potentially be significant to the VIE. The joint ventures that own properties in Ocoee, FL, Lawrenceville, GA, Dallas, TX, Farmers Branch, TX and Grand Prairie, TX were determined not to be a VIEs but are consolidated because the Company has controlling rights in such entities. With respect to its unconsolidated joint ventures, as (i) the Company is generally the managing member but does not exercise substantial operating control over these entities or the Company is not the managing member and (ii) such entities are not VIEs, the Company has determined that such joint ventures should be accounted for under the equity method of accounting for financial statement purposes. The distributions to each joint venture partner are determined pursuant to the applicable operating agreement and may not be pro-rata to the percentage equity interest each partner has in the applicable venture. The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results could differ from those estimates. Substantially all of the Company's assets are comprised of multi- family real estate assets generally leased to tenants on a one-year basis. Therefore, the Company aggregates real estate assets for reporting purposes and operates in one reportable segment. In February 2019, the Board of Directors of the Company authorized a change in the Company’s fiscal year end from September 30 to December 31. The change is intended to better align the Company’s fiscal year with the fiscal year of other multi-family REITs. As a result of the change in fiscal year, (i) the Company’s 2019 fiscal year began on January 1, 2019 and will end on December 31, 2019 and (ii) the Company is filing this Transition Report on Form 10-Q (this "Transition Report") covering the transition period from October 1, 2018 to December 31, 2018. |
Equity
Equity | 3 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Equity | Equity Equity Distribution Agreements In January 2018, the Company entered into equity distribution agreements, which were amended in May 2018, with three sales agents to sell up to an aggregate of $30,000,000 of its common stock from time-to-time in an at-the-market offering. During the quarter ended December 31, 2018, the Company did not sell any shares. Since the commencement of the at-the-market offering program through December 31, 2018, the Company sold 1,590,935 shares for an aggregate sales price of $20,913,000. Common Stock Dividend Distribution The Company declared a quarterly cash distribution of $0.20 per share, payable on January 4, 2019, to stockholders of record on December 21, 2018. Stock Based Compensation The Company's 2018 Incentive Plan (the "2018 Plan") permits the Company to grant: (i) stock options, restricted stock, restricted stock units, performance share awards and any one or more of the foregoing, up to a maximum of 600,000 shares; and (ii) cash settled dividend equivalent rights in tandem with the grant of restricted stock units and certain performance based awards. Restricted Stock Units In June 2016, the Company issued restricted stock units (the "Units") to acquire up to 450,000 shares of common stock pursuant to the 2016 Amended and Restated Incentive Plan (the "2016 Incentive Plan") . The Units entitle the recipients, subject to continued service through the March 31, 2021 vesting date, to receive (i) the underlying shares if and to the extent certain performance and/or market conditions are satisfied at the vesting date, and (ii) an amount equal to the cash dividends paid from the grant date through the vesting date with respect to the shares of common stock underlying the Units if, when, and to the extent, the related Units vest. For financial statement purposes, because the Units are not participating securities, the shares underlying the Units are excluded in the outstanding shares reflected on the consolidated balance sheet and from the calculation of basic earnings per share. The shares underlying the Units are contingently issuable shares and 200,000 of these shares have been included in the diluted earnings per share as the market conditions with respect to such units had been met at December 31, 2018. Expense is recognized over the five and $72,000 , of compensation expense related to the amortization of unearned compensation with respect to the Units. At December 31, 2018, and September 30, 2018, $319,000 and $354,000 of compensation expense, respectively, had been deferred and will be charged to expense over the remaining vesting period. Restricted Stock In January 2019, the Company granted 156,399 shares of restricted stock pursuant to the 2018 Incentive Plan. As of December 31, 2018 , an aggregate of 705,847 shares of unvested restricted stock are outstanding pursuant to the 2018 Incentive Plan, 2016 Incentive Plan and 2012 Incentive Plan. No additional awards may be granted under the 2016 Incentive Plan and 2012 Incentive Plan. The shares of restricted stock vest five For the three months ended December 31, 2018 and 2017, the Company recorded $288,000 and $243,000, respectively, of compensation expense related to the amortization of unearned compensation with respect to the restricted stock awards. At December 31, 2018 and September 30, 2018 , $2,735,000 and $3,023,000 has been deferred as unearned compensation and will be charged to expense over the remaining vesting periods of these restricted stock awards. The weighted average remaining vesting period of these shares of restricted stock is 2.1 years. Stock Buyback On September 5, 2017, the Board of Directors approved a repurchase plan authorizing the Company, effective as of October 1, 2017, to repurchase up to $5,000,000 of shares of common stock through September 30, 2019. During the quarter ended December 31, 2018, the Company purchased 10,274 shares of common stock at an average market price of $11.73 per share for a purchase price of approximately $120,473. Per Share Data Basic earnings per share is determined by dividing net income applicable to common stockholders for the applicable period by the weighted average number of shares of common stock outstanding during such period. The Units are excluded from the basic earnings per share calculation, as they are not participating securities. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into shares of common stock or resulted in the issuance of shares of common stock that share in the earnings of the Company. Diluted earnings per share is determined by dividing net income applicable to common stockholders for the applicable period by the weighted average number of shares of common stock deemed to be outstanding during such period. For the three months ended December 31, 2018 , the Company included 200,000 shares of common stock underlying the Units in the calculation of diluted earning per share as the market criteria with respect to the Units has been met at December 31, 2018 . The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except per share amounts): Three Months Ended December 31, 2018 2017 Numerator for basic and diluted earnings per share attributable to common stockholders: Net income attributable to common stockholders $ 8,073 $ 6,351 Denominator: Denominator for basic earnings per share—weighted average number of shares 15,744,233 14,022,438 Effect of diluted securities 200,000 200,000 Denominator for diluted earnings per share—adjusted weighted average number of shares and assumed conversions 15,944,233 14,222,438 Basic earnings per share $ 0.51 $ 0.45 Diluted earnings per share $ 0.51 $ 0.45 |
Real Estate Properties
Real Estate Properties | 3 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
Real Estate Properties | Real Estate Properties Real estate properties (including a property held for sale at September 30, 2018) consist of the following (dollars in thousands): December 31, 2018 September 30, 2018 Land $ 155,573 $ 163,862 Building 924,378 943,775 Building improvements 41,003 40,274 Real estate properties 1,120,954 1,147,911 Accumulated depreciation (91,715) (88,109) Total real estate properties, net $ 1,029,239 $ 1,059,802 A summary of real estate properties owned (including a property held for sale at September 30, 2018) follows (dollars in thousands): September 30, 2018 Additions Capitalized Costs and Improvements Depreciation Sales December 31, 2018 Multi-family $ 1,005,353 $ 38,259 $ 3,093 $ (10,164) $ (72,221) $ 964,320 Multi-family development - West Nashville, TN 44,057 — 10,498 — — 54,555 Land - Daytona, FL 8,021 — — — — 8,021 Shopping centers/Retail - Yonkers, NY 2,371 — — (28) — 2,343 Total real estate properties $ 1,059,802 $ 38,259 $ 13,591 $ (10,192) $ (72,221) $ 1,029,239 The following table summarizes the allocation of the purchase price with respect to a property purchased during the three months ended December 31, 2018 (dollars in thousands): Allocation of Purchase Price Land $ 3,164 Building and improvements 34,446 Acquisition-related intangible assets 649 Total consideration $ 38,259 The purchase price of the property acquired, inclusive of acquisition costs, was allocated to the acquired assets based on their estimated relative fair values on the acquisition date. As a result of damage from a fire in March 2018, the Company reduced the carrying value of Brixworth located in Huntsville, AL, by $741,000 and because the Company believed it was probable that it would recover such sum from its insurance coverage, it recognized such sum as an insurance recovery receivable. Through December 31, 2018, the Company received $1,560,000 and recognized a gain of $819,000 in the quarter ended December 31, 2018. As a result of damage from a fire in May 2018, the Company reduced the carrying value of Waterside located in Indianapolis, IN by $267,000 and because the Company believed it was probable that it would recover such sum from its insurance coverage, it recognized such sum as an insurance recovery receivable. Through December 31, 2018, the Company received $350,000 and recognized a gain of $83,000 in the quarter ended December 31, 2018. During the three months ended December 31, 2018, the Company received $1,153,000 and recognized an additional gain of $683,000 in insurance recoveries upon its receipt of funds on its claim with regard to damage at Retreat at Cinco Ranch, located in Katy, TX, which was damaged by Hurricane Harvey in September 2017. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 3 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Property Acquisitions The table below provides information regarding the Company's purchase of a multi-family property during the three months ended December 31, 2018 (dollars in thousands): Location Purchase Date No. of Units Purchase Price Acquisition Mortgage Debt Initial BRT Equity Ownership Percentage Capitalized Acquisition Costs Greenville, SC 10/30/2018 266 $ 37,750 $ 26,425 $ 12,920 90 $ 509 In the quarter ended December 31, 2018 , the Company purchased its partner's 20.0% equity interest in Kendall Apartments, located in Pensacola, FL, for $3,444,000. The property is now wholly owned by the Company. The table below provides information regarding the Company's purchases of multi-family properties during the three months ended December 31, 2017 (dollars in thousands): Location Purchase Date No. of Units Purchase Price Acquisition Mortgage Debt Initial BRT Equity Ownership Percentage Capitalized Acquisition Costs Madison, AL 12/7/2017 204 $ 18,420 $ 15,000 $ 4,456 80.0 % $ 247 Boerne, TX (a) 12/14/2017 120 12,000 9,200 3,780 80.0 % 244 324 $ 30,420 $ 24,200 $ 8,236 $ 491 ____________________________________ (a) Purchase price includes $500 for the acquisition of a land parcel adjacent to the property. Property Dispositions The following table is a summary of real estate properties disposed of by the Company during the three months ended December 31, 2018 (dollars in thousands): Location Sale No. of Sales Price Gain on Sale Non-controlling partner's portion of the gain North Charleston, SC 11/07/2018 271 $ 51,650 $ 11,921 $ 5,970 Lake St. Louis, MO 12/18/2018 420 41,200 7,593 2,077 691 $ 92,850 $ 19,514 $ 8,047 The following table is a summary of the real estate properties disposed of by the Company during the three months ended December 31, 2017 (dollars in thousands): Location Sale No. of Sales Price Gain on Sale Non-controlling partner's portion of the gain Melbourne, FL 10/25/2017 208 $ 22,250 $ 12,519 $ 2,504 Impairment Charges The Company reviews each real estate asset owned, including those held through investments in unconsolidated joint ventures, for impairment when there is an event or a change in circumstances indicating that the carrying amount may not be recoverable. The Company measures and records impairment losses, and reduces the carrying value of properties, when indicators of impairment are present and the expected undiscounted cash flows related to those properties are less than their carrying amounts. In cases where the Company does not expect to recover its carrying costs on properties held for use, the Company reduces its carrying costs to fair value, and for properties held for sale, the Company reduces its carrying value to the fair value less costs to sell. During the three months ended December 31, 2018 and 2017, no impairment charges were recorded. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest EntitiesThe Company conducts a large portion of its business with joint venture partners. Many of the Company's consolidated joint ventures that own properties were determined to be VIEs because the voting rights of some equity partners are not proportional to their obligations to absorb the expected loses of the entity and their rights to receive expected residual returns. It was determined that the Company is the primary beneficiary of these joint ventures because it has a controlling financial interest in that it has the power to direct the activities of the VIE that most significantly impacts the entity's economic performance and it has the obligation to absorb losses of the entity and the right to receive benefits from the entity that could potentially be significant to the VIE. The following is a summary of the carrying amounts with respect to the consolidated VIEs and their classification on the Company's consolidated balance sheets (dollars in thousands): December 31, 2018 September 30, 2018 ASSETS Real estate properties, net of accumulated depreciation of $53,637 and $52,873 $ 584,074 $ 586,623 Cash and cash equivalents 5,207 6,699 Deposits and escrows 11,705 11,837 Other assets 6,302 6,781 Real estate properties held for sale — 38,852 Total Assets $ 607,288 $ 650,792 LIABILITIES Mortgages payable, net of deferred costs of $3,628 and $3,786 $ 446,779 $ 481,569 Accounts payable and accrued liabilities 11,816 12,841 Total Liabilities $ 458,595 $ 494,410 |
Real Estate Property Held For S
Real Estate Property Held For Sale | 3 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Real Estate Property Held For Sale | Real Estate Property Held For SaleAt September 30, 2018, Factory at Garco Park, North Charleston, SC with a carrying value of $38,928,000, was held for sale. This property was sold on November 7, 2018. The Company did not have any properties that met the criteria for held-for-sale classification at December 31, 2018. |
Restricted Cash
Restricted Cash | 3 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted CashRestricted cash represents funds held for specific purposes and are therefore not generally available for general corporate purposes. The restricted cash reflected on the consolidated balance sheets represents funds that are held by or on behalf of the Company specifically for capital improvements at certain multi-family properties. |
Investment in Unconsolidated Ve
Investment in Unconsolidated Ventures | 3 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Ventures | Investment in Unconsolidated Ventures The Company has interests in unconsolidated joint ventures that own multi-family properties. The table below provides information regarding these joint ventures at December 31, 2018 (dollars in thousands): Location Number of Units Carrying Value of Investment Mortgage Balance Percent Ownership Columbia, SC 374 $ 4,619 $ 40,219 32 % Columbia, SC (a) 339 8,425 37,463 46 % Forney, TX (b) 313 6,591 25,350 50 % Other investments N/A 123 N/A N/A 1,026 $ 19,758 $ 103,032 ________________________ (a) Reflects land purchased for a development project at which construction of 339 units is planned. Construction financing for this project of up to $47,426 has been secured. Such financing bears interest at 4.95% and matures in June 2020. (b) This interest is held through a tenancy-in-common. The net loss from these ventures was $125,000 and $25,000 for the three months ended December 31, 2018 and 2017, respectively. |
Debt Obligations
Debt Obligations | 3 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Debt obligations consist of the following (dollars in thousands): December 31, 2018 September 30, 2018 Mortgages payable $ 778,106 $ 798,805 Junior subordinated notes 37,400 37,400 Deferred mortgage costs (6,646) (6,735) Total debt obligations, net of deferred costs $ 808,860 $ 829,470 Mortgages Payable During the three months ended December 31, 2018, the Company obtained the following mortgage debt in connection with the related property acquisition (dollars in thousands): Location Closing Date Acquisition Mortgage Debt Interest Rate Interest only period Maturity Date Greenville, SC 10/30/18 $ 26,425 4.69 % 60 months November 2028 The Company has a construction loan financing a development project. Information regarding this loan at December 31, 2018 is set forth below (dollars in thousand): Location Closing Date Maximum Loan Amount Amount outstanding Interest Rate Maturity Date Extension Option Nashville,TN 6/2/2017 $ 47,426 $ 29,272 LIBOR + 2.85% 6/2/2022 N/A Junior Subordinated Notes At December 31, 2018 and September 30, 2018, the Company's junior subordinated notes had an outstanding principal balance of $37,400,000, before deferred financing costs of $357,000 and $362,000, respectively. At December 31, 2018, the interest rate on the outstanding balance is three month LIBOR + 2.00% or 4.52%. The junior subordinated notes require interest only payments through the maturity date of April 30, 2036, at which time repayment of the outstanding principal and unpaid interest become due. Interest expense for the three months ended December 31, 2018 and 2017, which includes amortization of deferred costs, was $424,000 and $330,000, respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has retained certain of its executive officers and Fredric H. Gould, a director, to provide, among other things, the following services: participating in the Company's multi-family property analysis and approval process (which includes service on the investment committee), providing investment advice, long-term planning and consulting with executives and employees with respect to other business matters, as required. The aggregate fees incurred and paid for these services in the three months ended December 31, 2018 and 2017 were $317,000 and $302,000, respectively. Management of certain properties owned by the Company and certain joint venture properties is provided by Majestic Property Management Corp. ("Majestic Property"), a company wholly owned by Fredric H. Gould, under renewable year-to-year agreements. Certain of the Company's officers and directors are also officers and directors of Majestic Property. Majestic Property may also provide real estate brokerage and construction supervision services to these properties. These fees amounted to $14,000 and $9,000 for the three months ended December 31, 2018 and 2017, respectively. The Company shares facilities, personnel and other resources with One Liberty Properties, Inc., Majestic Property, and Gould Investors L.P. Certain of the Company's executive officers and/or directors also serve in management positions, and have ownership interests, in One Liberty, Majestic Property and/or Georgetown Partners Inc., the managing general partner of Gould Investors L.P. The allocation of expenses for the facilities, personnel and other resources shared by the Company, One Liberty, Majestic Property and Gould Investors is computed in accordance with a shared services agreement by and among the Company and these entities and is included in general and administrative expense on the consolidated statements of operations. For the three months ended December 31, 2018 and 2017, net allocated general and administrative expenses reimbursed by the Company to Gould Investors L.P. pursuant to the shared services agreement aggregated $116,000 and $81,000, respectively. Management of many of the Company's multi-family properties (including three multi-family properties owned by two unconsolidated joint ventures) is performed by the Company's joint venture partners or their affiliates. None of these joint venture partners is Gould Investors L.P., Majestic Property or their affiliates. Management fees to these related parties for the three months ended December 31, 2018 and 2017 were $986,000 and $818,000, respectively. In addition, the Company may pay an acquisition fee to a joint venture partner in connection with a property purchased by such joint venture. Capitalized acquisition fees paid to these related parties for the three months ended December 31, 2018 and 2017 were $378,000 and $230,000, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial Instruments Not Carried at Fair Value The following methods and assumptions were used to estimate the fair value of each class of financial instruments that are not recorded at fair value on the consolidated balance sheets: Cash and cash equivalents, restricted cash, accounts receivable (included in other assets), accounts payable and accrued liabilities: The carrying amounts reported in the balance sheets for these instruments approximate their fair value due to the short term nature of these accounts. Junior subordinated notes: At December 31, 2018 and September 30, 2018, the estimated fair value of the notes is lower than their carrying value by approximately $11,974,000 and $12,451,000, respectively, based on a market interest rate of 7.79% and 7.35%, respectively. Mortgages payable: At December 31, 2018, the estimated fair value of the Company’s mortgages payable is lower than their carrying value by approximately $19,334,000, assuming market interest rates between 3.94% and 5.61% and at September 30, 2018, the estimated fair value of the Company's mortgages payable was lower than their carrying value by approximately $34,039,000 assuming market interest rates between 4.30% and 6.04%. Market interest rates were determined using rates which the Company believes reflects institutional lender yield requirements at the balance sheet dates. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value assumptions. Financial Instruments Carried at Fair Value The Company’s fair value measurements are based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, there is a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets, or on other “observable” market inputs, and Level 3 assets/liabilities are valued based significantly on “unobservable” market inputs. The Company does not currently own any financial instruments that are classified as Level 3. Set forth below is information regarding the Company’s financial assets and liabilities measured at fair value as of December 31, 2018 (dollars in thousands): Carrying and Fair Value Fair Value MeasurementsUsing Fair Value Hierarchy Level 1 Level 2 Financial Assets: Interest rate swaps $ 2,429 — $ 2,429 Interest rate cap 5 — 5 Total Financial Assets $ 2,434 — $ 2,434 Derivative financial instruments: Fair values are approximated using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivatives. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities. At December 31, 2018, these derivatives are included in other assets on the consolidated balance sheet. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Cash Flow Hedges of Interest Rate Risk The Company's objective in using interest rate derivatives is to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives, designated and that qualify as cash flow hedges, is recorded in Accumulated Other Comprehensive Income on our consolidated balance sheets and is subsequently reclassified into earnings in the period that the hedged transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. As of December 31, 2018, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands): Interest Rate Derivative Current Notional Amount Fixed Rate Maturity Interest rate cap on LIBOR $ 9,200 3.86 % January 1, 2021 Interest rate cap on LIBOR 29,000 3.00 % July 1, 2021 Interest rate swap 1,298 5.25 % April 1, 2022 Interest rate swap 26,061 3.61 % May 6, 2023 Interest rate swap 27,000 4.05 % September 19, 2026 The table below presents the fair value of the Company’s derivative financial instruments as well as its classification on the consolidated balance sheets as of the dates indicated (dollars in thousands): Derivatives as of: December 31, 2018 September 30, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Other Assets $ 2,434 Other Assets $ 3,793 Accounts payable and accrued liabilities $ — Accounts payable and accrued liabilities $ — As of December 31, 2018, the Company did not have any derivative instruments that were considered to be ineffective and does not use derivative instruments for trading or speculative purposes. The following table presents the effect of the Company’s interest rate swaps on the consolidated statements of comprehensive (loss) income for the dates indicated (dollars in thousands): Three Months Ended 2018 2017 Amount of gain (loss) recognized on derivative in Other Comprehensive Income $ (1,260) $ 459 Amount of gain (loss) reclassified from Accumulated Other Comprehensive Income into Interest expense $ 99 $ 43 No gain or loss was recognized related to hedge ineffectiveness or to amounts excluded from effectiveness testing on the Company's cash flow hedges during the three months ended December 31, 2018 and December 31, 2017. The Company estimates an additional $491,000 will be reclassified from other comprehensive loss as a decrease to interest expense over the next twelve months. Credit-risk-related Contingent Features The agreement between the Company and its derivative counterparties provides that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, the Company could be declared in default on its derivative obligations. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which prescribes a single, common revenue standard that supersedes nearly all existing revenue recognition guidance under U.S. GAAP, including most industry-specific requirements. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 outlines a five step model to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein. The Company's revenues are primarily derived from rental income, which is scoped out from this standard and is currently accounted for in accordance with ASC Topic 840, Leases . The Company adopted this standard effective October 1, 2018, using the modified retrospective approach, applying the provisions to open contracts as of the date of adoption. Certain revenues, such as tenant reimbursements, tenant fees, and other property income, are subject to the new guidance. The adoption of the new revenue recognition standard did not have a material impact on the consolidated financial statements and no cumulative effect adjustment was recorded upon adoption as there was no change in the amount or timing of revenue recognized. In February 2016, the FASB issued ASU 2016-02, Leases . ASU 2016-02 supersedes the current accounting for leases and while retaining two distinct types of leases, finance and operating, and requires lessees to recognize most leases on their balance sheets and makes targeted changes to lessor accounting. Further, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. This amendment provides a new practical expedient that allows lessors, by class of underlying asset, to avoid separating lease and associated non-lease components within a contract if certain criteria are met: (i) the timing and pattern of transfer for the non-lease component and the associated lease component are the same and (ii) the stand-alone lease component would be classified as an operating lease if accounted for separately. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company will adopt this standard effective January 1, 2019, and its adoption is not expected to have a material effect on the consolidated financial statements. As a lessor, the Company expects that the adoption of ASU 2016-02 (as amended by subsequent ASUs) will not change the timing of revenue recognition of the Company’s rental revenues. As a lessee, the Company is party to certain equipment, ground, and office leases with future payment obligations for which the Company expects to record right-of-use assets and lease liabilities at the present value of the remaining minimum rental payments upon adoption of this standard. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides specific guidance on eight cash flow classification issues and how to reduce diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company adopted this standard effective October 1, 2018, using the “cumulative earnings approach” whereby distributions received from equity method investments are classified as cash flows from operations to the extent of equity earnings and then as cash flows from investing activities thereafter. The adoption of this guidance did not have a material effect on the consolidated financial statements. In November 2016, the FASB issued ASU Update No. 2016-018, Statement of Cash Flows (Topic 230): Restricted Cash. The new standard requires that the statement of cash flows explain the change during the period in the combined total of cash, cash equivalents, and amounts generally described as restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose relevant information about the nature of the restrictions on the basis of their individual facts and circumstances. The Company adopted this standard effective October 1, 2018 using the retrospective approach. The adoption of this update did not have a material effect on the consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which amends the guidance on nonfinancial assets in ASC 610-20. The amendments clarify that (i) a financial asset is within the scope of ASC 610-20 if it meets the definition of an in substance nonfinancial asset and may include nonfinancial assets transferred within a legal entity to a counter-party, (ii) an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counter-party and de-recognize each asset when a counter-party obtains control of it, and (iii) an entity should allocate consideration to each distinct asset by applying the guidance in ASC 606 on allocating the transaction price to performance obligations. Further, ASU 2017-05 provides guidance on accounting for partial sales of nonfinancial assets. The amendments are effective at the same time as the amendments in ASU 2014-09. The Company adopted this standard effective October 1, 2018. The adoption of this guidance did not have a material effect on the consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities . The update better aligns a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company adopted this standard effective January 1, 2019, and does not expect the adoption will have a material effect on the consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This update provides specific guidance for transactions for acquiring goods and services from nonemployees and specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (i) financing to the issuer or (ii) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC Topic 606, Revenue from Contracts with Customers. This guidance is effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. Early adoption is permitted but not earlier than the adoption of ASC Topic 606. The Company does not believe that this guidance will have a material effect on its consolidated financial statements as it has not historically issued share-based payments in exchange for goods or services to be consumed within its operations. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement , which removes, modifies, and adds certain disclosure requirements related to fair value measurements in ASC Topic 820. This guidance is effective for public companies in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. In October 2018, the FASB issued ASU 2018-16, (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) as a Benchmark Interest Rate for Hedging Purposes . The amendments in this update permit the OIS rate based on SOFR as an eligible benchmark interest rate. The amendments in this update are effective for fiscal years beginning after December 15, 2018. The Company adopted this guidance on January 1, 2019. The Company does not believe this guidance will have a material effect on its consolidated financial statements. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810: Targeted Improvements to Related Party Guidance for Variable Interest Entities) that expands the application of a specific private company accounting alternative related to VIEs and changes the guidance for determining whether a decision-making fee is a variable interest. It allows private companies the election not to apply the variable interest entity guidance to qualifying common control leasing arrangements. The amendment broadens the scope of the private company alternative to include all common control arrangements that meet specific criteria (not just leasing arrangements). ASU 2018-17 also eliminates the requirement that entities consider indirect interests held through related parties under common control in their entirety when assessing whether a decision-making fee is a variable interest. Instead, the reporting entity will consider such indirect interests on a proportionate basis. The ASU is effective for entities other than private entities for fiscal years beginning after December 15, 2019 with early adoption permitted. The company is currently evaluation the impact this guidance will have on its consolidated financial statements. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsSubsequent events have been evaluated and any significant events, relative to our consolidated financial statements as of December 31, 2018, that warrant additional disclosure, have been included in the notes to the consolidated financial statements. |
Basis of Preparation (Policies)
Basis of Preparation (Policies) | 3 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | The accompanying interim unaudited consolidated financial statements as of December 31, 2018, and for the three |
Consolidated Financial Statements and Variable Interest Entities | The consolidated financial statements include the accounts and operations of the Company, its wholly owned subsidiaries, and its majority owned or controlled real estate entities and its interests in variable interest entities ("VIEs") in which the Company is determined to be the primary beneficiary. Material intercompany balances and transactions have been eliminated. The Company’s consolidated joint ventures that own multi-family properties were determined to be VIEs because the voting rights of some equity investors in the applicable joint venture entity are not proportional to their obligations to absorb the expected losses of the entity and their right to receive the expected residual returns. It was determined that the Company is the primary beneficiary of these joint ventures because it has a controlling interest in that it has the power to direct the activities of the VIE that most significantly impact the entity's economic performance and it has the obligation to absorb losses of the entity and the right to receive benefits that could potentially be significant to the VIE. The joint ventures that own properties in Ocoee, FL, Lawrenceville, GA, Dallas, TX, Farmers Branch, TX and Grand Prairie, TX were determined not to be a VIEs but are consolidated because the Company has controlling rights in such entities. With respect to its unconsolidated joint ventures, as (i) the Company is generally the managing member but does not exercise substantial operating control over these entities or the Company is not the managing member and (ii) such entities are not VIEs, the Company has determined that such joint ventures should be accounted for under the equity method of accounting for financial statement purposes. The distributions to each joint venture partner are determined pursuant to the applicable operating agreement and may not be pro-rata |
Use of Estimates | The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results could differ from those estimates. Substantially all of the Company's assets are comprised of multi- family real estate assets generally leased to tenants on a one-year basis. Therefore, the Company aggregates real estate assets for reporting purposes and operates in one reportable segment. |
Financial Instruments Carried at Fair Value | Financial Instruments Carried at Fair Value The Company’s fair value measurements are based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, there is a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets, or on other “observable” market inputs, and Level 3 assets/liabilities are valued based significantly on “unobservable” market inputs. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which prescribes a single, common revenue standard that supersedes nearly all existing revenue recognition guidance under U.S. GAAP, including most industry-specific requirements. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 outlines a five step model to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein. The Company's revenues are primarily derived from rental income, which is scoped out from this standard and is currently accounted for in accordance with ASC Topic 840, Leases . The Company adopted this standard effective October 1, 2018, using the modified retrospective approach, applying the provisions to open contracts as of the date of adoption. Certain revenues, such as tenant reimbursements, tenant fees, and other property income, are subject to the new guidance. The adoption of the new revenue recognition standard did not have a material impact on the consolidated financial statements and no cumulative effect adjustment was recorded upon adoption as there was no change in the amount or timing of revenue recognized. In February 2016, the FASB issued ASU 2016-02, Leases . ASU 2016-02 supersedes the current accounting for leases and while retaining two distinct types of leases, finance and operating, and requires lessees to recognize most leases on their balance sheets and makes targeted changes to lessor accounting. Further, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. This amendment provides a new practical expedient that allows lessors, by class of underlying asset, to avoid separating lease and associated non-lease components within a contract if certain criteria are met: (i) the timing and pattern of transfer for the non-lease component and the associated lease component are the same and (ii) the stand-alone lease component would be classified as an operating lease if accounted for separately. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company will adopt this standard effective January 1, 2019, and its adoption is not expected to have a material effect on the consolidated financial statements. As a lessor, the Company expects that the adoption of ASU 2016-02 (as amended by subsequent ASUs) will not change the timing of revenue recognition of the Company’s rental revenues. As a lessee, the Company is party to certain equipment, ground, and office leases with future payment obligations for which the Company expects to record right-of-use assets and lease liabilities at the present value of the remaining minimum rental payments upon adoption of this standard. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides specific guidance on eight cash flow classification issues and how to reduce diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company adopted this standard effective October 1, 2018, using the “cumulative earnings approach” whereby distributions received from equity method investments are classified as cash flows from operations to the extent of equity earnings and then as cash flows from investing activities thereafter. The adoption of this guidance did not have a material effect on the consolidated financial statements. In November 2016, the FASB issued ASU Update No. 2016-018, Statement of Cash Flows (Topic 230): Restricted Cash. The new standard requires that the statement of cash flows explain the change during the period in the combined total of cash, cash equivalents, and amounts generally described as restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose relevant information about the nature of the restrictions on the basis of their individual facts and circumstances. The Company adopted this standard effective October 1, 2018 using the retrospective approach. The adoption of this update did not have a material effect on the consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which amends the guidance on nonfinancial assets in ASC 610-20. The amendments clarify that (i) a financial asset is within the scope of ASC 610-20 if it meets the definition of an in substance nonfinancial asset and may include nonfinancial assets transferred within a legal entity to a counter-party, (ii) an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counter-party and de-recognize each asset when a counter-party obtains control of it, and (iii) an entity should allocate consideration to each distinct asset by applying the guidance in ASC 606 on allocating the transaction price to performance obligations. Further, ASU 2017-05 provides guidance on accounting for partial sales of nonfinancial assets. The amendments are effective at the same time as the amendments in ASU 2014-09. The Company adopted this standard effective October 1, 2018. The adoption of this guidance did not have a material effect on the consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities . The update better aligns a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company adopted this standard effective January 1, 2019, and does not expect the adoption will have a material effect on the consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This update provides specific guidance for transactions for acquiring goods and services from nonemployees and specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (i) financing to the issuer or (ii) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC Topic 606, Revenue from Contracts with Customers. This guidance is effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. Early adoption is permitted but not earlier than the adoption of ASC Topic 606. The Company does not believe that this guidance will have a material effect on its consolidated financial statements as it has not historically issued share-based payments in exchange for goods or services to be consumed within its operations. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement , which removes, modifies, and adds certain disclosure requirements related to fair value measurements in ASC Topic 820. This guidance is effective for public companies in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. In October 2018, the FASB issued ASU 2018-16, (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) as a Benchmark Interest Rate for Hedging Purposes . The amendments in this update permit the OIS rate based on SOFR as an eligible benchmark interest rate. The amendments in this update are effective for fiscal years beginning after December 15, 2018. The Company adopted this guidance on January 1, 2019. The Company does not believe this guidance will have a material effect on its consolidated financial statements. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810: Targeted Improvements to Related Party Guidance for Variable Interest Entities) that expands the application of a specific private company accounting alternative related to VIEs and changes the guidance for determining whether a decision-making fee is a variable interest. It allows private companies the election not to apply the variable interest entity guidance to qualifying common control leasing arrangements. The amendment broadens the scope of the private company alternative to include all common control arrangements that meet specific criteria (not just leasing arrangements). ASU 2018-17 also eliminates the requirement that entities consider indirect interests held through related parties under common control in their entirety when assessing whether a decision-making fee is a variable interest. Instead, the reporting entity will consider such indirect interests on a proportionate basis. The ASU is effective for entities other than private entities for fiscal years beginning after December 15, 2019 with early adoption permitted. The company is currently evaluation the impact this guidance will have on its consolidated financial statements. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except per share amounts): Three Months Ended December 31, 2018 2017 Numerator for basic and diluted earnings per share attributable to common stockholders: Net income attributable to common stockholders $ 8,073 $ 6,351 Denominator: Denominator for basic earnings per share—weighted average number of shares 15,744,233 14,022,438 Effect of diluted securities 200,000 200,000 Denominator for diluted earnings per share—adjusted weighted average number of shares and assumed conversions 15,944,233 14,222,438 Basic earnings per share $ 0.51 $ 0.45 Diluted earnings per share $ 0.51 $ 0.45 |
Real Estate Properties (Tables)
Real Estate Properties (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
Summary of real estate properties owned | Real estate properties (including a property held for sale at September 30, 2018) consist of the following (dollars in thousands): December 31, 2018 September 30, 2018 Land $ 155,573 $ 163,862 Building 924,378 943,775 Building improvements 41,003 40,274 Real estate properties 1,120,954 1,147,911 Accumulated depreciation (91,715) (88,109) Total real estate properties, net $ 1,029,239 $ 1,059,802 A summary of real estate properties owned (including a property held for sale at September 30, 2018) follows (dollars in thousands): September 30, 2018 Additions Capitalized Costs and Improvements Depreciation Sales December 31, 2018 Multi-family $ 1,005,353 $ 38,259 $ 3,093 $ (10,164) $ (72,221) $ 964,320 Multi-family development - West Nashville, TN 44,057 — 10,498 — — 54,555 Land - Daytona, FL 8,021 — — — — 8,021 Shopping centers/Retail - Yonkers, NY 2,371 — — (28) — 2,343 Total real estate properties $ 1,059,802 $ 38,259 $ 13,591 $ (10,192) $ (72,221) $ 1,029,239 |
Summary of the allocation of purchase price | The following table summarizes the allocation of the purchase price with respect to a property purchased during the three months ended December 31, 2018 (dollars in thousands): Allocation of Purchase Price Land $ 3,164 Building and improvements 34,446 Acquisition-related intangible assets 649 Total consideration $ 38,259 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of real estate acquisitions | The table below provides information regarding the Company's purchase of a multi-family property during the three months ended December 31, 2018 (dollars in thousands): Location Purchase Date No. of Units Purchase Price Acquisition Mortgage Debt Initial BRT Equity Ownership Percentage Capitalized Acquisition Costs Greenville, SC 10/30/2018 266 $ 37,750 $ 26,425 $ 12,920 90 $ 509 In the quarter ended December 31, 2018 , the Company purchased its partner's 20.0% equity interest in Kendall Apartments, located in Pensacola, FL, for $3,444,000. The property is now wholly owned by the Company. The table below provides information regarding the Company's purchases of multi-family properties during the three months ended December 31, 2017 (dollars in thousands): Location Purchase Date No. of Units Purchase Price Acquisition Mortgage Debt Initial BRT Equity Ownership Percentage Capitalized Acquisition Costs Madison, AL 12/7/2017 204 $ 18,420 $ 15,000 $ 4,456 80.0 % $ 247 Boerne, TX (a) 12/14/2017 120 12,000 9,200 3,780 80.0 % 244 324 $ 30,420 $ 24,200 $ 8,236 $ 491 ____________________________________ (a) Purchase price includes $500 for the acquisition of a land parcel adjacent to the property. |
Schedule of property dispositions | The following table is a summary of real estate properties disposed of by the Company during the three months ended December 31, 2018 (dollars in thousands): Location Sale No. of Sales Price Gain on Sale Non-controlling partner's portion of the gain North Charleston, SC 11/07/2018 271 $ 51,650 $ 11,921 $ 5,970 Lake St. Louis, MO 12/18/2018 420 41,200 7,593 2,077 691 $ 92,850 $ 19,514 $ 8,047 The following table is a summary of the real estate properties disposed of by the Company during the three months ended December 31, 2017 (dollars in thousands): Location Sale No. of Sales Price Gain on Sale Non-controlling partner's portion of the gain Melbourne, FL 10/25/2017 208 $ 22,250 $ 12,519 $ 2,504 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of the Consolidated VIEs Carrying Amounts | The following is a summary of the carrying amounts with respect to the consolidated VIEs and their classification on the Company's consolidated balance sheets (dollars in thousands): December 31, 2018 September 30, 2018 ASSETS Real estate properties, net of accumulated depreciation of $53,637 and $52,873 $ 584,074 $ 586,623 Cash and cash equivalents 5,207 6,699 Deposits and escrows 11,705 11,837 Other assets 6,302 6,781 Real estate properties held for sale — 38,852 Total Assets $ 607,288 $ 650,792 LIABILITIES Mortgages payable, net of deferred costs of $3,628 and $3,786 $ 446,779 $ 481,569 Accounts payable and accrued liabilities 11,816 12,841 Total Liabilities $ 458,595 $ 494,410 |
Investment in Unconsolidated _2
Investment in Unconsolidated Ventures (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The table below provides information regarding these joint ventures at December 31, 2018 (dollars in thousands): Location Number of Units Carrying Value of Investment Mortgage Balance Percent Ownership Columbia, SC 374 $ 4,619 $ 40,219 32 % Columbia, SC (a) 339 8,425 37,463 46 % Forney, TX (b) 313 6,591 25,350 50 % Other investments N/A 123 N/A N/A 1,026 $ 19,758 $ 103,032 ________________________ (a) Reflects land purchased for a development project at which construction of 339 units is planned. Construction financing for this project of up to $47,426 has been secured. Such financing bears interest at 4.95% and matures in June 2020. |
Debt Obligations (Tables)
Debt Obligations (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | Debt obligations consist of the following (dollars in thousands): December 31, 2018 September 30, 2018 Mortgages payable $ 778,106 $ 798,805 Junior subordinated notes 37,400 37,400 Deferred mortgage costs (6,646) (6,735) Total debt obligations, net of deferred costs $ 808,860 $ 829,470 |
Schedule of debt information | During the three months ended December 31, 2018, the Company obtained the following mortgage debt in connection with the related property acquisition (dollars in thousands): Location Closing Date Acquisition Mortgage Debt Interest Rate Interest only period Maturity Date Greenville, SC 10/30/18 $ 26,425 4.69 % 60 months November 2028 The Company has a construction loan financing a development project. Information regarding this loan at December 31, 2018 is set forth below (dollars in thousand): Location Closing Date Maximum Loan Amount Amount outstanding Interest Rate Maturity Date Extension Option Nashville,TN 6/2/2017 $ 47,426 $ 29,272 LIBOR + 2.85% 6/2/2022 N/A |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets measured at fair value | Set forth below is information regarding the Company’s financial assets and liabilities measured at fair value as of December 31, 2018 (dollars in thousands): Carrying and Fair Value Fair Value MeasurementsUsing Fair Value Hierarchy Level 1 Level 2 Financial Assets: Interest rate swaps $ 2,429 — $ 2,429 Interest rate cap 5 — 5 Total Financial Assets $ 2,434 — $ 2,434 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of outstanding interest rate derivatives | As of December 31, 2018, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands): Interest Rate Derivative Current Notional Amount Fixed Rate Maturity Interest rate cap on LIBOR $ 9,200 3.86 % January 1, 2021 Interest rate cap on LIBOR 29,000 3.00 % July 1, 2021 Interest rate swap 1,298 5.25 % April 1, 2022 Interest rate swap 26,061 3.61 % May 6, 2023 Interest rate swap 27,000 4.05 % September 19, 2026 |
Schedule of fair value of derivative financial instruments and classification on consolidated balance sheets | The table below presents the fair value of the Company’s derivative financial instruments as well as its classification on the consolidated balance sheets as of the dates indicated (dollars in thousands): Derivatives as of: December 31, 2018 September 30, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Other Assets $ 2,434 Other Assets $ 3,793 Accounts payable and accrued liabilities $ — Accounts payable and accrued liabilities $ — |
Schedule of effect of derivative financial instrument on consolidated statements of comprehensive (loss) income | The following table presents the effect of the Company’s interest rate swaps on the consolidated statements of comprehensive (loss) income for the dates indicated (dollars in thousands): Three Months Ended 2018 2017 Amount of gain (loss) recognized on derivative in Other Comprehensive Income $ (1,260) $ 459 Amount of gain (loss) reclassified from Accumulated Other Comprehensive Income into Interest expense $ 99 $ 43 |
Organization and Background - N
Organization and Background - Narrative (Details) $ in Thousands | Dec. 31, 2018USD ($)property_Unitstatepropertyinvestment | Sep. 30, 2018USD ($) |
Real Estate Properties [Line Items] | ||
Number of properties | property | 35 | |
Number of units | property_Unit | 9,696 | |
Number of units under development | property_Unit | 402 | |
Number of states | state | 11 | |
Real estate properties | $ | $ 1,029,239 | $ 1,020,874 |
Investments in unconsolidated joint ventures | $ | $ 19,758 | $ 20,078 |
Unconsolidated joint ventures | ||
Real Estate Properties [Line Items] | ||
Number of properties | property | 1,026 | |
Number of units | property_Unit | 687 | |
Number of states | state | 2 | |
Number of investments | investment | 3 | |
Number of units in properties in lease up stage | property_Unit | 339 | |
Investments in unconsolidated joint ventures | $ | $ 19,635 | |
Apartment Building | ||
Real Estate Properties [Line Items] | ||
Real estate properties | $ | $ 1,018,874 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) | Jan. 04, 2019 | Jan. 31, 2019 | Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jan. 31, 2018 | Sep. 05, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares repurchased (in shares) | 10,274 | ||||||||
Average market price of shares repurchased (in dollars per share) | $ 11.73 | ||||||||
Value of shares repurchased | $ 120,473 | ||||||||
Effect of diluted securities (in shares) | 200,000 | 200,000 | |||||||
New Share Repurchase Program | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Beneficial interest purchased authorized amount | $ 5,000,000 | ||||||||
Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation expense | $ 35,000 | $ 72,000 | |||||||
Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation expense | 288,000 | $ 243,000 | |||||||
Deferred unearned compensation | $ 2,735,000 | $ 2,735,000 | $ 3,023,000 | ||||||
Remaining weighted average vesting period | 2 years 1 month 6 days | ||||||||
Incentive Plan 2018 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized (in shares) | 600,000 | 600,000 | |||||||
Incentive Plan 2018 | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares outstanding (in shares) | 705,847 | 705,847 | |||||||
Incentive Plan 2016 | Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Issued (in shares) | 450,000 | ||||||||
Contingently issuable shares included in diluted earnings calculation (in shares) | 200,000 | ||||||||
Vesting period for shares issued | 5 years | ||||||||
Deferred unearned compensation | $ 319,000 | $ 319,000 | $ 354,000 | ||||||
Prior Plan | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of additional awards available for grant (in shares) | 0 | 0 | |||||||
Private placement | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock issued in offering | $ 30,000,000 | ||||||||
Aggregate sales price | $ 20,913,000 | ||||||||
At-the-market | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares sold in offering (in shares) | 0 | 1,590,935 | |||||||
Subsequent Event | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Dividends declared per share (in dollars per share) | $ 0.20 | ||||||||
Subsequent Event | Incentive Plan 2018 | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Issued (in shares) | 156,399 | ||||||||
Subsequent Event | Incentive Plan 2016 | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period for shares issued | 5 years |
Equity - Schedule of Computatio
Equity - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator for basic and diluted (loss) earnings per share attributable to common stockholders: | ||
Net income attributable to common stockholders | $ 8,073 | $ 6,351 |
Denominator: | ||
Denominator for basic earnings per share—weighted average number of shares (in shares) | 15,744,233 | 14,022,438 |
Effect of diluted securities (in shares) | 200,000 | 200,000 |
Denominator for diluted earnings per share—adjusted weighted average number of shares and assumed conversions (in shares) | 15,944,233 | 14,222,438 |
Basic earnings per share (in dollars per share) | $ 0.51 | $ 0.45 |
Diluted earnings per share (in dollars per share) | $ 0.51 | $ 0.45 |
Real Estate Properties - Schedu
Real Estate Properties - Schedule of Real Estate Properties (Including Properties Held For Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Real Estate [Abstract] | ||
Land | $ 155,573 | $ 163,862 |
Building | 924,378 | 943,775 |
Building improvements | 41,003 | 40,274 |
Real estate properties | 1,120,954 | 1,147,911 |
Accumulated depreciation | (91,715) | (88,109) |
Total real estate properties, net | $ 1,029,239 | $ 1,059,802 |
Real Estate Properties - Summar
Real Estate Properties - Summary of Real Estate Properties Owned (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | $ 1,059,802 |
Additions | 38,259 |
Capitalized Costs and Improvements | 13,591 |
Depreciation | (10,192) |
Sales | (72,221) |
Real estate properties, ending balance | 1,029,239 |
Apartment Building | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | 1,005,353 |
Additions | 38,259 |
Capitalized Costs and Improvements | 3,093 |
Depreciation | (10,164) |
Sales | (72,221) |
Real estate properties, ending balance | 964,320 |
Apartment Building | West Nashville, TN | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | 44,057 |
Additions | 0 |
Capitalized Costs and Improvements | 10,498 |
Depreciation | 0 |
Sales | 0 |
Real estate properties, ending balance | 54,555 |
Land - Daytona, FL | Daytona, FL | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | 8,021 |
Additions | 0 |
Capitalized Costs and Improvements | 0 |
Depreciation | 0 |
Sales | 0 |
Real estate properties, ending balance | 8,021 |
Shopping centers/Retail - Yonkers, NY | RBHTRB Newark Holdings LLC | Yonkers, NY | VIE | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | 2,371 |
Additions | 0 |
Capitalized Costs and Improvements | 0 |
Depreciation | (28) |
Sales | 0 |
Real estate properties, ending balance | $ 2,343 |
Real Estate Properties - Alloca
Real Estate Properties - Allocation of Purchase Price (Details) - Property Purchased During Period $ in Thousands | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |
Acquisition-related intangibles | $ 649 |
Total consideration | 38,259 |
Land | |
Business Acquisition [Line Items] | |
Real estate property | 3,164 |
Buildings and Improvements | |
Business Acquisition [Line Items] | |
Real estate property | $ 34,446 |
Real Estate Properties - Narrat
Real Estate Properties - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | ||
May 31, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||||||
Insurance recoveries | $ 1,585 | $ 0 | ||||
Brixworth | Huntsville, AL | ||||||
Loss Contingencies [Line Items] | ||||||
Reduction in carrying value | $ 741 | |||||
Insurance recoveries | $ 741 | |||||
Insurance proceeds | $ 1,560 | |||||
Gain on insurance recovery | 819 | |||||
Waterside | Indianapolis, IN | ||||||
Loss Contingencies [Line Items] | ||||||
Reduction in carrying value | $ 267 | |||||
Insurance recoveries | $ 267 | |||||
Insurance proceeds | $ 350 | |||||
Gain on insurance recovery | 83 | |||||
Retreat at Cinco Ranch | Katy, TX | ||||||
Loss Contingencies [Line Items] | ||||||
Insurance proceeds | 1,153 | |||||
Gain on insurance recovery | $ 683 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Property Acquisitions (Details) | 3 Months Ended | ||
Dec. 31, 2018USD ($)propertyproperty_Unit | Dec. 31, 2017USD ($)property | Dec. 14, 2017USD ($) | |
Real Estate Properties [Line Items] | |||
No. of Units | property_Unit | 9,696 | ||
Corporate Joint Venture | VIE | Apartment Building | Property Acquisition | |||
Real Estate Properties [Line Items] | |||
No. of Units | property | 324 | ||
Purchase Price | $ 30,420,000 | ||
Initial BRT Equity | 8,236,000 | ||
Capitalized Acquisition Costs | $ 491,000 | ||
Corporate Joint Venture | VIE | Greenville, SC | Apartment Building | Property Acquisition | |||
Real Estate Properties [Line Items] | |||
No. of Units | property | 266 | ||
Purchase Price | $ 37,750,000 | ||
Initial BRT Equity | $ 12,920,000 | ||
Ownership Percentage | 90.00% | ||
Capitalized Acquisition Costs | $ 509,000 | ||
Corporate Joint Venture | VIE | Pensacola, FL | Apartment Building | Property Acquisition | |||
Real Estate Properties [Line Items] | |||
Purchase Price | $ 3,444,000 | ||
Ownership Percentage | 20.00% | ||
Corporate Joint Venture | VIE | Madison, AL | Apartment Building | Property Acquisition | |||
Real Estate Properties [Line Items] | |||
No. of Units | property | 204 | ||
Purchase Price | $ 18,420,000 | ||
Initial BRT Equity | $ 4,456,000 | ||
Ownership Percentage | 80.00% | ||
Capitalized Acquisition Costs | $ 247,000 | ||
Corporate Joint Venture | VIE | Boerne, TX | Apartment Building | Property Acquisition | |||
Real Estate Properties [Line Items] | |||
No. of Units | property | 120 | ||
Purchase Price | $ 12,000,000 | ||
Initial BRT Equity | $ 3,780,000 | ||
Ownership Percentage | 80.00% | ||
Capitalized Acquisition Costs | $ 244,000 | ||
Corporate Joint Venture | VIE | Boerne, TX | Land | Property Acquisition | |||
Real Estate Properties [Line Items] | |||
Purchase Price | $ 500,000 | ||
Acquisition Mortgages Debt | Corporate Joint Venture | VIE | Apartment Building | Property Acquisition | |||
Real Estate Properties [Line Items] | |||
Acquisition Mortgage Debt | 24,200,000 | ||
Acquisition Mortgages Debt | Corporate Joint Venture | VIE | Greenville, SC | Apartment Building | Property Acquisition | |||
Real Estate Properties [Line Items] | |||
Acquisition Mortgage Debt | $ 26,425,000 | ||
Acquisition Mortgages Debt | Corporate Joint Venture | VIE | Madison, AL | Apartment Building | Property Acquisition | |||
Real Estate Properties [Line Items] | |||
Acquisition Mortgage Debt | 15,000,000 | ||
Acquisition Mortgages Debt | Corporate Joint Venture | VIE | Boerne, TX | Apartment Building | Property Acquisition | |||
Real Estate Properties [Line Items] | |||
Acquisition Mortgage Debt | $ 9,200,000 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Property Dispositions (Details) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018USD ($)propertyproperty_Unit | Dec. 31, 2017USD ($)property | |
Business Acquisition [Line Items] | ||
No. of Units | property_Unit | 9,696 | |
Property dispositions | ||
Business Acquisition [Line Items] | ||
No. of Units | property | 691 | |
Sales Price | $ 92,850 | |
Gain on Sale | 19,514 | |
Non-controlling partner's portion of the gain | $ 8,047 | |
Property dispositions | North Charleston, SC | ||
Business Acquisition [Line Items] | ||
No. of Units | property | 271 | |
Sales Price | $ 51,650 | |
Gain on Sale | 11,921 | |
Non-controlling partner's portion of the gain | $ 5,970 | |
Property dispositions | Lake St. Louis, MO | ||
Business Acquisition [Line Items] | ||
No. of Units | property | 420 | |
Sales Price | $ 41,200 | |
Gain on Sale | 7,593 | |
Non-controlling partner's portion of the gain | $ 2,077 | |
Property dispositions | Melbourne, FL | ||
Business Acquisition [Line Items] | ||
No. of Units | property | 208 | |
Sales Price | $ 22,250 | |
Gain on Sale | 12,519 | |
Non-controlling partner's portion of the gain | $ 2,504 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Impairment Charges (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | ||
Impairment charges | $ 0 | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | |
Variable Interest Entity [Line Items] | |||
Real estate properties, net of accumulated depreciation of $53,637 and $52,873 | $ 1,029,239 | $ 1,020,874 | |
Cash and cash equivalents | 32,428 | 27,360 | |
Deposits and escrows | 21,268 | 24,458 | |
Other assets | 8,084 | 10,080 | |
Real estate property held for sale | 0 | 38,928 | |
Total Assets | [1] | 1,123,707 | 1,153,364 |
Mortgages payable, net of deferred costs of $3,628 and $3,786 | 771,817 | 792,432 | |
Accounts payable and accrued liabilities | 24,487 | 27,409 | |
Total Liabilities | [1] | 833,347 | 856,879 |
Real estate accumulated depreciation | 91,715 | 85,724 | |
Deferred mortgage costs | 6,646 | 6,735 | |
Variable interest entity | |||
Variable Interest Entity [Line Items] | |||
Real estate properties, net of accumulated depreciation of $53,637 and $52,873 | 584,074 | 586,623 | |
Cash and cash equivalents | 5,207 | 6,699 | |
Deposits and escrows | 11,705 | 11,837 | |
Other assets | 6,302 | 6,781 | |
Real estate property held for sale | 0 | 38,852 | |
Total Assets | 607,288 | 650,792 | |
Mortgages payable, net of deferred costs of $3,628 and $3,786 | 446,779 | 481,569 | |
Accounts payable and accrued liabilities | 11,816 | 12,841 | |
Total Liabilities | 458,595 | 494,410 | |
Real estate accumulated depreciation | 53,637 | 52,873 | |
Mortgages | |||
Variable Interest Entity [Line Items] | |||
Deferred mortgage costs | 6,289 | 6,373 | |
Mortgages | Variable interest entity | |||
Variable Interest Entity [Line Items] | |||
Deferred mortgage costs | $ 3,628 | $ 3,786 | |
[1] | The Company's consolidated balance sheets include the assets and liabilities of consolidated variable interest entities (VIEs). See note 6. The consolidated balance sheets include the following amounts related to the Company's VIEs as of December 31, 2018 and September 30, 2018, respectively: $584,074 and $586,623 of real estate properties, $5,207 and $6,699 of cash and cash equivalents, $11,705 and $11,837 of deposits and escrows, $6,302 and $6,781 of other assets, $0 and $38,928 of real estate properties held for sale, $446,749 and $481,569 of mortgages payable, net of deferred costs and $11,816 and $12,841 of accounts payable and accrued liabilities. |
Real Estate Property Held For_2
Real Estate Property Held For Sale - Narrative (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Factory at Garco, North Charleston, SC | Held-for-sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Carrying value of factory held for sale | $ 38,928 |
Investment in Unconsolidated _3
Investment in Unconsolidated Ventures (Details) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018USD ($)property | Dec. 31, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Number of Units | property | 35 | |
Equity in loss of unconsolidated joint ventures | $ 125 | $ 25 |
Joint venture, forty six percent ownership | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of real estate properties, to be constructed | property | 339 | |
Other investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value of Investment | $ 123 | |
Unconsolidated joint ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Units | property | 1,026 | |
Carrying Value of Investment | $ 19,758 | |
Mortgage Balance | $ 103,032 | |
Columbia, SC | Joint venture, thirty two percent ownership | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Units | property | 374 | |
Carrying Value of Investment | $ 4,619 | |
Mortgage Balance | $ 40,219 | |
Percent Ownership | 32.00% | |
Columbia, SC (Location 2) | Joint venture, forty six percent ownership | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Units | property | 339 | |
Carrying Value of Investment | $ 8,425 | |
Mortgage Balance | $ 37,463 | |
Percent Ownership | 46.00% | |
Forney, TX | Joint venture, fifty percent ownership | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of Units | property | 313 | |
Carrying Value of Investment | $ 6,591 | |
Mortgage Balance | $ 25,350 | |
Percent Ownership | 50.00% | |
Secured Debt | Joint venture, forty six percent ownership | ||
Schedule of Equity Method Investments [Line Items] | ||
Construction financing | $ 47,426 | |
Interest rate | 4.95% |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Debt Obligations | ||
Deferred mortgage costs | $ (6,646) | $ (6,735) |
Total debt obligations, net of deferred costs | 808,860 | 829,470 |
Mortgages payable | ||
Debt Obligations | ||
Total debt obligations, net of deferred costs | 778,106 | 798,805 |
Deferred mortgage costs | (6,289) | (6,373) |
Junior subordinated notes | ||
Debt Obligations | ||
Total debt obligations, net of deferred costs | 37,400 | 37,400 |
Deferred mortgage costs | $ (357) | $ (362) |
Debt Obligations - Mortgage Pay
Debt Obligations - Mortgage Payable (Details) - Mortgages - Mortgages Maturing In November 2028 - Greenville, SC | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Debt Obligations | |
Acquisition Mortgage Debt | $ 26,425,000 |
Interest rate | 4.69% |
Interest only period | 60 months |
Debt Obligations - Construction
Debt Obligations - Construction Loans (Details) - Nashville, TN - Construction Loans $ in Thousands | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |
Maximum loan amount | $ 47,426 |
Amount outstanding | $ 29,272 |
London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.85% |
Debt Obligations - Junior Subor
Debt Obligations - Junior Subordinated Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | |||
Deferred financing costs | $ 6,646 | $ 6,735 | |
Junior subordinated notes | |||
Debt Instrument [Line Items] | |||
Total debt obligations | 37,400 | 37,400 | |
Deferred financing costs | 357 | $ 362 | |
Interest expense | $ 424 | $ 330 | |
London Interbank Offered Rate (LIBOR) | Junior subordinated notes | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Interest rate | 4.52% |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018USD ($)property | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | ||
Related party expense | $ 317 | $ 302 |
Related party - general and administrative | 116 | 81 |
Real Property Management Real Estate Brokerage And Construction Supervision Services | Majestic Property Management Corporation | ||
Related Party Transaction [Line Items] | ||
Related party expense | 14 | 9 |
Shared Services Agreement | Gould Investors Limited Partnership | ||
Related Party Transaction [Line Items] | ||
Related party - general and administrative | 116 | 81 |
Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Related party expense | $ 986 | 818 |
Number of investments | property | 3 | |
Affiliated Entity | Payment of Acquisition Fee | ||
Related Party Transaction [Line Items] | ||
Related party expense | $ 378 | $ 230 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - Level 2 - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | |
Market Approach Valuation Technique | Junior subordinated notes | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 7.79% | 7.35% |
Market Approach Valuation Technique | Mortgages | Minimum | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 3.94% | 4.30% |
Market Approach Valuation Technique | Mortgages | Maximum | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 5.61% | 6.04% |
Carrying and Fair Value | Junior subordinated notes | ||
Financial Instruments Not Measured at Fair Value | ||
Estimated fair value (lower) higher than carrying value | $ 11,974 | $ 12,451 |
Carrying and Fair Value | Mortgages | ||
Financial Instruments Not Measured at Fair Value | ||
Estimated fair value (lower) higher than carrying value | $ 19,334 | $ 34,039 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value (Details) - Fair Value Measurements Recurring $ in Thousands | Dec. 31, 2018USD ($) |
Level 1 | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Total financial assets | $ 0 |
Level 1 | Interest rate swaps | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Total financial assets | 0 |
Level 1 | Interest rate cap | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Total financial assets | 0 |
Level 2 | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Total financial assets | 2,434 |
Level 2 | Interest rate swaps | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Total financial assets | 2,429 |
Level 2 | Interest rate cap | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Total financial assets | 5 |
Carrying and Fair Value | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Total financial assets | 2,434 |
Carrying and Fair Value | Interest rate swaps | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Total financial assets | 2,429 |
Carrying and Fair Value | Interest rate cap | |
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | |
Total financial assets | $ 5 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Derivative [Line Items] | |||
Gain or loss from components excluded from assessment of cash flow hedge effectiveness | $ 0 | $ 0 | |
Gain or loss recognized related to hedge ineffectiveness | 0 | 0 | |
Estimated amount to be reclassified from Accumulated other comprehensive income (loss) as an increase to interest expense | 491,000 | ||
Interest Expense | |||
Derivative [Line Items] | |||
Amount of gain recognized on derivative in Other Comprehensive Income | (1,260,000) | 459,000 | |
Amount of loss reclassified from Accumulated Other Comprehensive Income into Interest expense | 99,000 | $ 43,000 | |
Other Assets | |||
Derivative [Line Items] | |||
Fair value of derivative financial instrument asset | 3,793,000 | $ 2,434,000 | |
Accounts payable and accrued liabilities | |||
Derivative [Line Items] | |||
Fair value of derivative financial instrument liability | 0 | $ 0 | |
Hedging instrument | Interest Rate Swap, Maturity Date April 1, 2022 | |||
Derivative [Line Items] | |||
Current Notional Amount | $ 1,298,000 | ||
Fixed rate (as a percent) | 5.25% | ||
Hedging instrument | Interest Rate Swap, Maturity Date May 6, 2023 | |||
Derivative [Line Items] | |||
Current Notional Amount | $ 26,061,000 | ||
Fixed rate (as a percent) | 3.61% | ||
Hedging instrument | Interest Rate Swap, Maturity Date September 19, 2026 | |||
Derivative [Line Items] | |||
Current Notional Amount | $ 27,000,000 | ||
Fixed rate (as a percent) | 4.05% | ||
London Interbank Offered Rate (LIBOR) | Hedging instrument | Interest Rate Swap, Maturity Date January 1, 2021 | |||
Derivative [Line Items] | |||
Current Notional Amount | $ 9,200,000 | ||
Fixed rate (as a percent) | 3.86% | ||
London Interbank Offered Rate (LIBOR) | Hedging instrument | Interest Rate Swap, Maturity Date July 1, 2021 | |||
Derivative [Line Items] | |||
Current Notional Amount | $ 29,000,000 | ||
Fixed rate (as a percent) | 3.00% |