COVER PAGE
COVER PAGE - shares | 3 Months Ended | |
Mar. 31, 2021 | May 06, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-07172 | |
Entity Registrant Name | BRT APARTMENTS CORP. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 13-2755856 | |
Entity Address, Address Line One | 60 Cutter Mill Road | |
Entity Address, City or Town | Great Neck | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11021 | |
City Area Code | 516 | |
Local Phone Number | 466-3100 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | BRT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 17,582,975 | |
Amendment Flag | false | |
Entity Central Index Key | 0000014846 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Real estate properties, net of accumulated depreciation and amortization of $30,777 and $30,837 | $ 142,078 | $ 160,192 |
Investments in unconsolidated joint ventures | 164,248 | 169,474 |
Cash and cash equivalents | 19,406 | 19,885 |
Restricted cash | 8,511 | 8,800 |
Other assets | 6,910 | 7,390 |
Real estate property held for sale | 16,800 | 0 |
Total Assets | 357,953 | 365,741 |
Liabilities: | ||
Mortgages payable, net of deferred costs of $498 and $563 | 129,698 | 130,434 |
Junior subordinated notes, net of deferred costs of $312 and $317 | 37,088 | 37,083 |
Accounts payable and accrued liabilities | 20,678 | 20,536 |
Total Liabilities | 187,464 | 188,053 |
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; 16,820 and 16,432 shares outstanding | 168 | 164 |
Additional paid-in capital | 246,139 | 245,605 |
Accumulated other comprehensive loss | (15) | (19) |
Accumulated deficit | (75,754) | (67,978) |
Total BRT Apartments Corp. stockholders’ equity | 170,538 | 177,772 |
Non-controlling interests | (49) | (84) |
Total Equity | 170,489 | 177,688 |
Total Liabilities and Equity | $ 357,953 | $ 365,741 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Real estate accumulated depreciation | $ 30,777 | $ 30,837 |
Deferred mortgage costs | $ 810 | $ 880 |
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) | 16,820,000 | 16,432,000 |
Mortgages payable | ||
Debt Instrument [Line Items] | ||
Deferred mortgage costs | $ 498 | $ 563 |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Deferred mortgage costs | $ 312 | $ 317 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Rental and other revenue from real estate properties | $ 7,095 | $ 6,745 |
Other income | 4 | 179 |
Total revenues | 7,099 | 6,924 |
Expenses: | ||
Real estate operating expenses - including $7 and $8 to related parties | 3,117 | 3,058 |
Interest expense | 1,660 | 1,860 |
General and administrative - including $172 and $226 to related parties | 3,114 | 3,367 |
Depreciation | 1,537 | 1,561 |
Total expenses | 9,428 | 9,846 |
Total revenues less total expenses | (2,329) | (2,922) |
Equity in loss of unconsolidated joint ventures | (1,345) | (1,815) |
Loss from continuing operations | (3,674) | (4,737) |
Income tax provision | 57 | 62 |
Net loss from continuing operations, net of taxes | (3,731) | (4,799) |
Net income attributable to non-controlling interests | (34) | (32) |
Net loss attributable to common stockholders | $ (3,765) | $ (4,831) |
Weighted average number of shares of common stock outstanding: | ||
Basic (in shares) | 17,319,222 | 16,932,252 |
Diluted (in shares) | 17,319,222 | 16,932,252 |
Per share amounts attributable to common stockholders: | ||
Basic (in dollars per share) | $ (0.22) | $ (0.29) |
Diluted (in dollars per share) | $ (0.22) | $ (0.29) |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Related party - real estate operating expenses | $ 7 | $ 8 |
Related party - general and administrative | $ 172 | $ 226 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (3,731) | $ (4,799) |
Other comprehensive loss: | ||
Unrealized income (loss) on derivative instruments | 5 | (23) |
Other comprehensive income (loss) | 5 | (23) |
Comprehensive loss | (3,726) | (4,822) |
Comprehensive (income)loss attributable to non-controlling interests | (35) | (29) |
Comprehensive loss attributable to common stockholders | $ (3,761) | $ (4,851) |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) income | Accumulated Deficit | Non- Controlling Interest |
Beginning balance at Dec. 31, 2019 | $ 199,560 | $ 156 | $ 232,331 | $ (10) | $ (32,824) | $ (93) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Distributions - Common Stock | (3,822) | (3,822) | ||||
Restricted stock vesting | 0 | 1 | (1) | |||
Compensation expense - restricted stock and restricted stock units | 438 | 438 | ||||
Distributions to non-controlling interests | (89) | (89) | ||||
Shares issued through equity offering program, net | 12,077 | 7 | 12,070 | |||
Shares repurchased | (616) | (616) | ||||
Net (loss) income | (4,799) | (4,831) | 32 | |||
Other comprehensive income (loss) | (23) | (20) | (3) | |||
Comprehensive loss | (4,822) | |||||
Ending balance at Mar. 31, 2020 | 202,726 | 164 | 244,222 | (30) | (41,477) | (153) |
Beginning balance at Dec. 31, 2020 | 177,688 | 164 | 245,605 | (19) | (67,978) | (84) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Distributions - Common Stock | (4,011) | (4,011) | ||||
Restricted stock vesting | 0 | 4 | (4) | |||
Compensation expense - restricted stock and restricted stock units | 538 | 538 | ||||
Net (loss) income | (3,731) | (3,765) | 34 | |||
Other comprehensive income (loss) | 5 | 4 | 1 | |||
Comprehensive loss | (3,726) | |||||
Ending balance at Mar. 31, 2021 | $ 170,489 | $ 168 | $ 246,139 | $ (15) | $ (75,754) | $ (49) |
CONSOLIDATED STATEMENT OF EQU_2
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.22 | $ 0.22 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (3,731) | $ (4,799) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 1,537 | 1,561 |
Amortization of deferred financing costs | 80 | 70 |
Amortization of restricted stock and restricted stock units | 538 | 438 |
Equity in loss of unconsolidated joint ventures | 1,345 | 1,815 |
Increases and decreases from changes in other assets and liabilities: | ||
Decrease (increase) in other assets | 470 | (331) |
Increase in accounts payable and accrued liabilities | (87) | 1,803 |
Net cash provided by operating activities | 152 | 557 |
Cash flows from investing activities: | ||
Collections from real estate loan | 0 | 150 |
Improvements to real estate properties | (223) | (323) |
Distributions from unconsolidated joint ventures | 3,881 | 3,010 |
Contributions to unconsolidated joint ventures | 0 | (13,700) |
Net cash provided by (used in) investing activities | 3,658 | (10,863) |
Cash flows from financing activities: | ||
Mortgage principal payments | (801) | (756) |
Dividends paid | (3,777) | (3,778) |
Distributions to non-controlling interests | 0 | (89) |
Proceeds from the sale of common stock | 0 | 12,077 |
Repurchase of shares of common stock | 0 | (616) |
Net cash (used in) provided by financing activities | (4,578) | 6,838 |
Net decrease in cash, cash equivalents and restricted cash | (768) | (3,468) |
Cash, cash equivalents and restricted cash at beginning of period | 28,685 | 32,418 |
Cash, cash equivalents and restricted cash at end of period | 27,917 | 28,950 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 1,587 | 1,810 |
Cash paid for income taxes | 6 | 10 |
Reclassification of property to held for sale | 16,800 | 0 |
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows. | ||
Total cash, cash equivalents and restricted cash, shown in consolidated statement of cash flows | $ 27,917 | $ 28,950 |
Organization and Background
Organization and Background | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Background | Organization and Background BRT Apartments Corp. (the "Company" or "BRT"), a Maryland corporation, owns and operates 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 March 31, 2021, the Company: (a) wholly owns eight multi-family properties located in six states with an aggregate of 1,880 units, and a carrying value of $152,317,000 (including $16,800,000 classified as held for sale); and (b) has interests, through unconsolidated entities, in 31 multi-family properties located in nine states with an aggregate of 9,162 units and the carrying value of this net equity investment is $164,248,000. BRT's equity interests in these unconsolidated entities range from 32% to 90%. Most of the Company's properties are located in the Southeast United States and Texas. The Company also owns and operates various other real estate assets. At March 31, 2021, the carrying value of the other real estate assets was $6,617,000. |
Basis of Preparation
Basis of Preparation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | Basis of Preparation The accompanying interim unaudited consolidated financial statements as of March 31, 2021, and for the three months ended March 31, 2021 and 2020, 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 March 31, 2021 and 2020, are not necessarily indicative of the results for the full year. The consolidated audited balance sheet as of December 31, 2020, 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"). Accordingly, these unaudited statements should be read in conjunction with the Company's audited financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2020, as amended, filed with the Securities and Exchange Commission ("SEC"). The consolidated financial statements include the accounts and operations of the Company and its wholly-owned subsidiaries. The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting. For each venture, the Company evaluated the rights provided to each party in the venture to assess the consolidation of the venture. All investments in unconsolidated joint ventures have sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support and, as a group, the holders of the equity at risk have power through voting rights to direct the activities of these ventures. As a result, none of these joint ventures are variable interest entities ("VIEs"). Additionally, the Company does not exercise substantial operating control over these entities, and therefore the entities are not consolidated. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for their share of equity in earnings, cash contributions and distributions. 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 joint venture that owns a property in Yonkers, New York, was determined not to be a VIE but is consolidated because the Company has controlling rights in such entity. The preparation of the financial statements in conformity with GAAP, 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. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Equity | Equity Equity Distribution Agreements In November 2019, the Company entered into equity distribution agreements, as amended March 31, 2021, 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 three months ended March 31, 2020, the Company sold 694,298 shares for an aggregate sales price of $12,293,000, before commissions and fees of $185,000 and offering related expenses of $31,000. From the commencement of this program through March 31, 2021, the Company has sold 806,261 shares for an aggregate sales price of $14,316,000 before commissions and fees of $314,000 and offering related expenses of $56,000. There were no shares sold subsequent to March 31, 2020. Common Stock Dividend Distribution The Company declared a quarterly cash distribution of $0.22 per share, payable on April 7, 2021 to stockholders of record on March 24, 2021. Stock Based Compensation The Company's 2020 Incentive Plan permits the Company to grant: (i) stock options, restricted stock, restricted stock units, performance shares awards and any one or more of the foregoing, for up to a maximum of 1,000,000 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 entitled 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 (the "RSU Dividend Equivalents") 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 were 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. Expense is recognized over the five-year vesting period on the Units which the Company expects to vest. For each of the three months ended March 31, 2021 and 2020, respectively, the Company recorded $37,000 and $35,000, respectively, of compensation expense related to the amortization of unearned compensation with respect to the Units. Subsequent to March 31, 2021, it was determined that the market conditions with respect to 250,000 shares underlying Units had been satisfied; such shares, with an aggregate market value of $4.2 million as of the vesting date, were issued and an aggregate of $ 775,000 of RSU Dividend Equivalents was paid. It was also determined that the performance conditions with respect to 200,000 shares underlying Units had not been satisfied; the 200,000 Units were forfeited. Restricted Stock In January 2021, the Company granted 156,774 shares of restricted stock pursuant to the 2020 Incentive Plan. As of March 31, 2021 , an aggregate of 763,369 shares of unvested restricted stock are outstanding pursuant to the 2020 Incentive Plan, the 2018 Incentive Plan (the "2018 Plan") and the 2016 Incentive Plan (the "2016 Plan"; and together with the 2018 Plan, the "Prior Plans"). No additional awards may be granted under the Prior Plans. The shares of restricted stock vest five years from the date of grant and under specified circumstances, including a change in control, may vest earlier. For financial statement purposes, the restricted stock is not included in the outstanding shares shown on the consolidated balance sheets until they vest, but are included in the earnings per share computation. For the three months ended March 31, 2021 and 2020, the Company recorded $501,000 and $403,000, respectively, of compensation expense related to the amortization of unearned compensation with respect to the restricted stock awards. At March 31, 2021 and December 31, 2020 , $6,304,000 and $4,411,000 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 2.9 years. Stock Buyback On September 12, 2019, the Board of Directors approved a repurchase plan authorizing the Company, effective as of October 1, 2019, to repurchase up to $5,000,000 of shares of common stock through September 30, 2021. During the three months ended March 31, 2021, the Company did not repurchase any shares. During the three months ended March 31, 2020, the Company repurchased 39,093 shares of common stock at an average market price of $15.76 for an aggregate cost of $616,000. Per Share Data Basic earnings (loss) per share is determined by dividing net income (loss) 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. In calculating diluted earnings per share for the three months ended March 31, 2021 and 2020, the Company did not include any shares underlying the Units as their effect would have been anti-dilutive. The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except share amounts): Three Months Ended March 31, 2021 2020 Numerator for basic and diluted earnings (loss) per share attributable to common stockholders: Net loss attributable to common stockholders $ (3,765) $ (4,831) Denominator: Denominator for basic and diluted earnings per share—weighted average number of shares 17,319,222 16,932,252 Basic loss per share $ (0.22) $ (0.29) Diluted loss per share $ (0.22) $ (0.29) |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Lessor Accounting The Company owns one commercial rental property which is leased to two tenants under operating leases with current expirations ranging from 2024 to 2028, with tenant options to extend or terminate the leases. Revenues from such leases are reported as rental income, net, and are comprised of (i) lease components, which includes fixed lease payments and (ii) non-lease components which includes reimbursements of property level operating expenses. The Company does not separate non-lease components from the related lease components, as the timing and pattern of transfer are the same, and accounts for the combined component in accordance with ASC 842. Due to the impact of the COVID-19 pandemic, in 2020, concession agreements were entered into with the Company’s two commercial tenants. In accordance with the FASB Staff Q&A, Topics 842 and 840 - Accounting for Lease Concessions Related to the Effects of COVID-19 Pandemic, a lessor may make an accounting policy election to (i) not evaluate whether such COVID-19 pandemic related rent-relief is a lease modification under ASC 842 and (ii) treat each tenant rent deferral or forgiveness as if it were contemplated as part of the existing lease contract. The Company elected to apply this accounting policy to the two lease agreements, based on the type of concession provided to the tenant, where the revised cash flows are substantially the same or less than the original lease agreement. As a result, during the three months ended June 30, 2020, the Company issued total abatements of $75,000 for the two tenants. Lessee Accounting The Company is a lessee under a ground lease in Yonkers, NY which is classified as an operating lease. The ground lease expires September 30, 2024 and provides for one 21-year renewal option. As of March 31, 2021, the remaining lease term, including the renewal option, is 24.5 years. The Company is a lessee under a corporate office lease in Great Neck, New York, which is classified as an operating lease. The lease expires on December 31, 2031 and provides a 5-year renewal option. As of March 31, 2021 , the remaining lease term, including renewal options deemed exercised, is 15.8 years. As of March 31, 2021, the Company's Right of Use ("ROU") assets and lease liabilities were $2,719,000 and $2,767,000, respectively. As of December 31, 2020, the Company's ROU assets and lease liabilities were $2,652,000 and $2,674,000, respectively. The discount rate applied to measure each ROU asset and lease liability is based on the Company’s incremental borrowing rate (“IBR”). The Company considers the general economic environment and its historical borrowing rate activity and factors in various financing and asset specific adjustments to ensure the IBR is appropriate to the intended use of the underlying lease. As the Company did not elect to apply the hindsight practical expedient, lease term assumptions determined under ASC 840 were carried forward and applied in calculating the lease liabilities recorded under ASC 842. The Company’s ground lease offers a renewal option which it assesses against relevant economic factors to determine whether it is reasonably certain of exercising or not exercising the option. Lease payments associated with renewal periods that the Company is reasonably certain will be exercised, if any, are included in the measurement of the corresponding lease liability and ROU asset. |
Leases | Leases Lessor Accounting The Company owns one commercial rental property which is leased to two tenants under operating leases with current expirations ranging from 2024 to 2028, with tenant options to extend or terminate the leases. Revenues from such leases are reported as rental income, net, and are comprised of (i) lease components, which includes fixed lease payments and (ii) non-lease components which includes reimbursements of property level operating expenses. The Company does not separate non-lease components from the related lease components, as the timing and pattern of transfer are the same, and accounts for the combined component in accordance with ASC 842. Due to the impact of the COVID-19 pandemic, in 2020, concession agreements were entered into with the Company’s two commercial tenants. In accordance with the FASB Staff Q&A, Topics 842 and 840 - Accounting for Lease Concessions Related to the Effects of COVID-19 Pandemic, a lessor may make an accounting policy election to (i) not evaluate whether such COVID-19 pandemic related rent-relief is a lease modification under ASC 842 and (ii) treat each tenant rent deferral or forgiveness as if it were contemplated as part of the existing lease contract. The Company elected to apply this accounting policy to the two lease agreements, based on the type of concession provided to the tenant, where the revised cash flows are substantially the same or less than the original lease agreement. As a result, during the three months ended June 30, 2020, the Company issued total abatements of $75,000 for the two tenants. Lessee Accounting The Company is a lessee under a ground lease in Yonkers, NY which is classified as an operating lease. The ground lease expires September 30, 2024 and provides for one 21-year renewal option. As of March 31, 2021, the remaining lease term, including the renewal option, is 24.5 years. The Company is a lessee under a corporate office lease in Great Neck, New York, which is classified as an operating lease. The lease expires on December 31, 2031 and provides a 5-year renewal option. As of March 31, 2021 , the remaining lease term, including renewal options deemed exercised, is 15.8 years. As of March 31, 2021, the Company's Right of Use ("ROU") assets and lease liabilities were $2,719,000 and $2,767,000, respectively. As of December 31, 2020, the Company's ROU assets and lease liabilities were $2,652,000 and $2,674,000, respectively. The discount rate applied to measure each ROU asset and lease liability is based on the Company’s incremental borrowing rate (“IBR”). The Company considers the general economic environment and its historical borrowing rate activity and factors in various financing and asset specific adjustments to ensure the IBR is appropriate to the intended use of the underlying lease. As the Company did not elect to apply the hindsight practical expedient, lease term assumptions determined under ASC 840 were carried forward and applied in calculating the lease liabilities recorded under ASC 842. The Company’s ground lease offers a renewal option which it assesses against relevant economic factors to determine whether it is reasonably certain of exercising or not exercising the option. Lease payments associated with renewal periods that the Company is reasonably certain will be exercised, if any, are included in the measurement of the corresponding lease liability and ROU asset. |
Real Estate Properties
Real Estate Properties | 3 Months Ended |
Mar. 31, 2021 | |
Real Estate [Abstract] | |
Real Estate Properties | Real Estate Properties Real estate properties, excluding a property held for sale, consist of the following (dollars in thousands): March 31, 2021 December 31, 2020 Land $ 23,317 $ 25,585 Building 141,143 154,854 Building improvements 8,395 10,590 Real estate properties 172,855 191,029 Accumulated depreciation (30,777) (30,837) Total real estate properties, net $ 142,078 $ 160,192 A summary of real estate property owned, excluding a property held for sale, is as follows (dollars in thousands): December 31, 2020 Capitalized Costs and Improvements Depreciation Reclassified to Held for Sale March 31, 2021 Multi-family $ 153,604 $ 223 $ (1,509) $ (16,800) $ 135,518 Land - Daytona, FL 4,379 — — — 4,379 Retail shopping center and other 2,209 — (28) — 2,181 Total real estate properties $ 160,192 $ 223 $ (1,537) $ (16,800) $ 142,078 |
Impairment Charges
Impairment Charges | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Impairment Charges | 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 charges, and reduces the carrying value of owned properties, when indicators of impairment are present and the expected undiscounted cash flows related to those properties are less than their carrying amounts. For its unconsolidated joint venture investments, the Company measures and records impairment losses, and reduces the carrying value of the equity investment when indicators of impairment are present and the expected discounted cash flows related to the investment is less than the carrying value. |
Real Estate Property Held For S
Real Estate Property Held For Sale | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Real Estate Property Held For Sale | Real Estate Property Held For SaleIn March 2021, the Company entered into a contract to sell Kendall Manor, a property located in Houston, TX, for $24,500,000 with a net book value of $16,800,000. The buyer's right to terminate the contract expired on March 17, 2021. At March 31, 2021, the Company reclassified the net book value of the property's land, building and building improvements as Property held-for-sale in the accompanying balance sheet. It is anticipated that the sale of this property will be completed in May 2021. |
Restricted Cash
Restricted Cash | 3 Months Ended |
Mar. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted CashRestricted cash represents funds held for specific purposes and are therefore not available for general corporate purposes. The restricted cash reflected on the consolidated balance sheets represents funds that are held by the Company specifically for capital improvements at certain multi-family properties owned by unconsolidated joint ventures. |
Investment in Unconsolidated Ve
Investment in Unconsolidated Ventures | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Ventures | Investment in Unconsolidated Ventures At March 31, 2021 and December 31, 2020, the Company held interests in unconsolidated joint ventures (the "Unconsolidated Properties"), that own 31 multi-family properties. The condensed balance sheets below present information regarding such properties (dollars in thousands): March 31, 2021 December 31, 2020 ASSETS Real estate properties, net of accumulated depreciation of $155,455 and $145,600 $ 1,064,820 $ 1,075,178 Cash and cash equivalents 14,900 16,939 Other assets 27,667 29,392 Total Assets $ 1,107,387 $ 1,121,509 LIABILITIES AND EQUITY Liabilities: Mortgages payable, net of deferred costs of $5,311 and $5,537 $ 828,591 $ 829,646 Accounts payable and accrued liabilities 15,099 20,237 Total Liabilities 843,690 849,883 Commitments and contingencies Equity: Total unconsolidated joint venture equity 263,697 271,626 Total Liabilities and Equity $ 1,107,387 $ 1,121,509 BRT's interest in joint venture equity $ 164,248 $ 169,474 As of the indicated dates, real estate properties of our unconsolidated joint ventures consist of the following (dollars in thousands): March 31, 2021 December 31, 2020 Land $ 148,341 $ 148,341 Building 1,027,979 1,029,739 Building improvements 43,955 42,698 Real estate properties 1,220,275 1,220,778 Accumulated depreciation (155,455) (145,600) Total real estate properties, net $ 1,064,820 $ 1,075,178 The condensed income statement below presents information regarding the Unconsolidated Properties (dollars in thousands): Three Months Ended 2021 2020 Revenues: Rental and other revenue $ 32,672 $ 30,843 Total revenues 32,672 30,843 Expenses: Real estate operating expenses 15,703 14,532 Interest expense 8,522 8,757 Depreciation 10,385 10,357 Total expenses 34,610 33,646 Total revenues less total expenses (1,938) (2,803) Other equity earnings 9 8 Impairment charges (2,323) — Insurance recoveries 2,323 — Net loss from joint ventures $ (1,929) $ (2,795) BRT's equity in loss from joint ventures $ (1,345) $ (1,815) During the three months ended March 31, 2021, we recognized $2,300,000 of impairment charges at three of our equity investments located in Texas due to storm damage and also recognized $2,300,000 of insurance recoveries related to the impairment charges resulting from the Texas ice storm damage. There were no comparable charges in the corresponding period of the prior year. On April 20, 2021, the Company sold its joint venture interest in Anatole Apartments, a property located in Daytona Beach, FL. The Company will recognize a gain of approximately $2,200,000 on the sale in the quarter ending June 30, 2021. On May 4, 2021, the Company purchased an additional 14.69% interest in Civic Center I and Civic Center II - Southaven, MS, from its existing joint venture partner for $6,031,000. After giving effect to this purchase, the Company owns 74.69% of the equity interest in these properties. On May 7, 2021, the Company entered into an agreement to acquire the 41.9% interest owned by its joint venture partners in the entity that owns Bells Bluff, a 402-unit multi-family property located in West Nashville, TN. The purchase price for the interest, after giving effect to the joint venture partners' carried interest, is approximately $28,000,000, subject to working capital and certain other adjustments. After giving effect to this purchase, Bells Bluff will be wholly-owned by the Company. The completion of this purchase is subject to customary closing conditions, including the refinancing of the $47,200,000 floating rate ( i.e. |
Debt Obligations
Debt Obligations | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Debt obligations consist of the following (dollars in thousands): March 31, 2021 December 31, 2020 Mortgages payable $ 130,196 $ 130,997 Junior subordinated notes 37,400 37,400 Deferred financing costs (810) (880) Total debt obligations, net of deferred costs $ 166,786 $ 167,517 Mortgages Payable The weighted average interest rate on the Company's mortgages payable at March 31, 2021 was 4.15% and the weighted average remaining term to maturity is 4.13 years. For the three months ended March 31, 2021 and 2020 interest expense, which includes amortization of deferred financing costs, was $1,429,000 and $1,475,000, respectively. Credit Facility The Company's credit facility with an affiliate of Valley National Bank, as amended and modified from time-to-time, allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $15,000,000 to facilitate the acquisition of multi-family properties and for working capital (including dividend payments) and operating expenses. The facility is secured by the cash available in certain cash accounts maintained by the Company at Valley National Bank, matures April 2023 and bears an adjustable interest rate of 50 basis points over the prime rate, with a floor of 4.25%. The interest rate in effect as of March 31, 2021 is 4.25%. For the three months ended March 31, 2021 and 2020, interest expense, which includes amortization of deferred financing costs and unused fees, was $17,000 and $15,000. Deferred financing costs of $2,000 and $12,000, are recorded in other assets on the Consolidated balance sheets at March 31, 2021 and December 31, 2020, respectively. There is an unused facility fee of 0.25% per annum on the difference between the outstanding loan balance and maximum amount then available under the facility. At March 31, 2021, the Company is in compliance in all material respects with its obligation under the facility. At March 31, 2021 and April 30, 2021, there was no outstanding balance on the facility. Junior Subordinated Notes At March 31, 2021 and December 31, 2020, the outstanding principal balance of the Company's junior subordinated notes was $37,400,000, before deferred financing costs of $312,000 and $317,000, respectively. The interest rate on the outstanding balance resets quarterly and is based on three months LIBOR + 2.00%. The rate in effect at March 31, 2021 and 2020 was or 2.21% and 3.77%, respectively. The notes mature April 30, 2036. 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 March 31, 2021 and 2020, which includes amortization of deferred financing costs, was $214,000 and $370,000, respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
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, among other things, to participate in the Company's multi-family property analysis and approval process (which includes service on an investment committee); provide investment advice; and provide 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 each of the three months ended March 31, 2021 and 2020 were $350,000. 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. 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 $7,000 and $8,000 for the three months ended March 31, 2021 and 2020, respectively. Pursuant to a shared services agreement between the Company and several affiliated entities, including Gould Investors L.P., the owner and operator of a diversified portfolio of real estate and other assets, and One Liberty Properties, Inc., a NYSE listed equity REIT, the (i) services of the part time personnel that perform certain executive, administrative, legal, accounting and clerical functions and (ii) certain facilities and other resources, are provided to the Company. The allocation of expenses for the facilities, personnel and other resources shared by, among others, the Company and Gould Investors, is computed in accordance with such agreement and is included in general and administrative expense on the consolidated statements of |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements 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 March 31, 2021 and December 31, 2020, the estimated fair value of the notes is lower than their carrying value by approximately $8,596,000 and $8,670,000, respectively, based on a market interest rate of 4.19% and 4.22%, respectively. Mortgages payable: At March 31, 2021, the estimated fair value of the Company’s mortgages payable is greater than their carrying value by approximately $265,000, assuming market interest rates between 3.43% and 4.09%. At December 31, 2020, the estimated fair value of the Company's mortgages payable was greater than their carrying value by approximately $3,831,000, assuming market interest rates between 2.87% and 3.28%. 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. 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 March 31, 2021 (dollars in thousands): Carrying and Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Level 3 Financial Liabilities: Interest rate swap $ 18 $ — $ 18 $ — Set forth below is information regarding the Company’s financial assets and liabilities measured at fair value as of December 31, 2020 (dollars in thousands): Carrying and Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Level 3 Financial Liabilities: Interest rate swap $ 23 $ — $ 23 $ — 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, and implied volatilities. At March 31, 2021 and December 31, 2020, this derivative is included in other liabilities on the consolidated balance sheet. Although the Company has determined that the majority of the inputs used to value its derivative fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with it utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. As of March 31, 2021 and December 31, 2020, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative position and determined that the credit valuation adjustments are not significant to the overall valuation of its derivative. As a result, the Company determined that its derivative valuation is classified in Level 2 of the fair value hierarchy. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
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 are to add stability to interest expense and 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 changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated Other Comprehensive (Loss) income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. As of March 31, 2021, 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 swap $ 1,001 5.25 % April 1, 2022 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: March 31, 2021 December 31, 2020 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Accounts payable and accrued liabilities $ 18 Accounts payable and accrued liabilities $ 23 The following table presents the effect of the Company’s interest rate swaps on the consolidated statements of comprehensive income (loss) for the dates indicated (dollars in thousands): Three Months Ended March 31, 2021 2020 Amount of (loss) gain recognized on derivative in Other Comprehensive Income $ — $ (24) Amount of (loss) gain reclassified from Accumulated Other Comprehensive Income into Interest expense $ (5) $ (1) Total amount of Interest expense presented in the Consolidated Statements of Operations $ 1,660 $ 1,860 The Company estimates an additional $18,000 will be reclassified from other comprehensive loss as an increase 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. As of March 31, 2021 and December 31, 2020, the fair value of derivatives in a net liability position including interest but excluding any adjustment for nonperformance risk related to these agreements was $20,000 and $25,000, respectively. As of March 31, 2021 and December 31, 2020, the Company has not posted any collateral related to this agreement and was not in breach of any agreement provisions. If the Company had breached any of these provisions, it could have been required to settle it obligations under the agreement termination value of $20,000 and $25,000, at March 31, 2021 and December 31, 2020 respectively. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In March 2020, the Financial Accounting Standard Board issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, lease, derivatives and other contracts. This guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company has elected to apply hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. 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 adopted this guidance effective January 1, 2020. The adoption of this guidance did not 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. The Company adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material effect on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) establishing ASC Topic 326, Financial Instruments - Credit Losses (“ASC 326”), as amended by subsequent ASUs on the topic. ASU 2016-13 changes how entities will account for credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current “incurred loss” model with an “expected loss” model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the financial asset. ASU 2016-13 is effective for interim and annual reporting periods in fiscal years |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsSubsequent events have been evaluated and any significant events, relative to our consolidated financial statements as of March 31, 2021, 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 |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | The accompanying interim unaudited consolidated financial statements as of March 31, 2021, and for the three |
Consolidated Financial Statements and Variable Interest Entities | The consolidated financial statements include the accounts and operations of the Company and its wholly-owned subsidiaries. The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting. For each venture, the Company evaluated the rights provided to each party in the venture to assess the consolidation of the venture. All investments in unconsolidated joint ventures have sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support and, as a group, the holders of the equity at risk have power through voting rights to direct the activities of these ventures. As a result, none of these joint ventures are variable interest entities ("VIEs"). Additionally, the Company does not exercise substantial operating control over these entities, and therefore the entities are not consolidated. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for their share of equity in earnings, cash contributions and distributions. 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. |
Use of Estimates | The preparation of the financial statements in conformity with GAAP, 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 March 2020, the Financial Accounting Standard Board issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, lease, derivatives and other contracts. This guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company has elected to apply hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. 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 adopted this guidance effective January 1, 2020. The adoption of this guidance did not 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. The Company adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material effect on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) establishing ASC Topic 326, Financial Instruments - Credit Losses (“ASC 326”), as amended by subsequent ASUs on the topic. ASU 2016-13 changes how entities will account for credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current “incurred loss” model with an “expected loss” model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the financial asset. ASU 2016-13 is effective for interim and annual reporting periods in fiscal years |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 share amounts): Three Months Ended March 31, 2021 2020 Numerator for basic and diluted earnings (loss) per share attributable to common stockholders: Net loss attributable to common stockholders $ (3,765) $ (4,831) Denominator: Denominator for basic and diluted earnings per share—weighted average number of shares 17,319,222 16,932,252 Basic loss per share $ (0.22) $ (0.29) Diluted loss per share $ (0.22) $ (0.29) |
Real Estate Properties (Tables)
Real Estate Properties (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Real Estate [Abstract] | |
Summary of real estate properties owned | Real estate properties, excluding a property held for sale, consist of the following (dollars in thousands): March 31, 2021 December 31, 2020 Land $ 23,317 $ 25,585 Building 141,143 154,854 Building improvements 8,395 10,590 Real estate properties 172,855 191,029 Accumulated depreciation (30,777) (30,837) Total real estate properties, net $ 142,078 $ 160,192 A summary of real estate property owned, excluding a property held for sale, is as follows (dollars in thousands): December 31, 2020 Capitalized Costs and Improvements Depreciation Reclassified to Held for Sale March 31, 2021 Multi-family $ 153,604 $ 223 $ (1,509) $ (16,800) $ 135,518 Land - Daytona, FL 4,379 — — — 4,379 Retail shopping center and other 2,209 — (28) — 2,181 Total real estate properties $ 160,192 $ 223 $ (1,537) $ (16,800) $ 142,078 March 31, 2021 December 31, 2020 Land $ 148,341 $ 148,341 Building 1,027,979 1,029,739 Building improvements 43,955 42,698 Real estate properties 1,220,275 1,220,778 Accumulated depreciation (155,455) (145,600) Total real estate properties, net $ 1,064,820 $ 1,075,178 |
Investment in Unconsolidated _2
Investment in Unconsolidated Ventures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of equity method investments | The condensed balance sheets below present information regarding such properties (dollars in thousands): March 31, 2021 December 31, 2020 ASSETS Real estate properties, net of accumulated depreciation of $155,455 and $145,600 $ 1,064,820 $ 1,075,178 Cash and cash equivalents 14,900 16,939 Other assets 27,667 29,392 Total Assets $ 1,107,387 $ 1,121,509 LIABILITIES AND EQUITY Liabilities: Mortgages payable, net of deferred costs of $5,311 and $5,537 $ 828,591 $ 829,646 Accounts payable and accrued liabilities 15,099 20,237 Total Liabilities 843,690 849,883 Commitments and contingencies Equity: Total unconsolidated joint venture equity 263,697 271,626 Total Liabilities and Equity $ 1,107,387 $ 1,121,509 BRT's interest in joint venture equity $ 164,248 $ 169,474 The condensed income statement below presents information regarding the Unconsolidated Properties (dollars in thousands): Three Months Ended 2021 2020 Revenues: Rental and other revenue $ 32,672 $ 30,843 Total revenues 32,672 30,843 Expenses: Real estate operating expenses 15,703 14,532 Interest expense 8,522 8,757 Depreciation 10,385 10,357 Total expenses 34,610 33,646 Total revenues less total expenses (1,938) (2,803) Other equity earnings 9 8 Impairment charges (2,323) — Insurance recoveries 2,323 — Net loss from joint ventures $ (1,929) $ (2,795) BRT's equity in loss from joint ventures $ (1,345) $ (1,815) During the three months ended March 31, 2021, we recognized $2,300,000 of impairment charges at three of our equity investments located in Texas due to storm damage and also recognized $2,300,000 of insurance recoveries related to the impairment charges resulting from the Texas ice storm damage. There were no comparable charges in the corresponding period of the prior year. On April 20, 2021, the Company sold its joint venture interest in Anatole Apartments, a property located in Daytona Beach, FL. The Company will recognize a gain of approximately $2,200,000 on the sale in the quarter ending June 30, 2021. On May 4, 2021, the Company purchased an additional 14.69% interest in Civic Center I and Civic Center II - Southaven, MS, from its existing joint venture partner for $6,031,000. After giving effect to this purchase, the Company owns 74.69% of the equity interest in these properties. On May 7, 2021, the Company entered into an agreement to acquire the 41.9% interest owned by its joint venture partners in the entity that owns Bells Bluff, a 402-unit multi-family property located in West Nashville, TN. The purchase price for the interest, after giving effect to the joint venture partners' carried interest, is approximately $28,000,000, subject to working capital and certain other adjustments. After giving effect to this purchase, Bells Bluff will be wholly-owned by the Company. The completion of this purchase is subject to customary closing conditions, including the refinancing of the $47,200,000 floating rate ( i.e. |
Summary of real estate properties owned | Real estate properties, excluding a property held for sale, consist of the following (dollars in thousands): March 31, 2021 December 31, 2020 Land $ 23,317 $ 25,585 Building 141,143 154,854 Building improvements 8,395 10,590 Real estate properties 172,855 191,029 Accumulated depreciation (30,777) (30,837) Total real estate properties, net $ 142,078 $ 160,192 A summary of real estate property owned, excluding a property held for sale, is as follows (dollars in thousands): December 31, 2020 Capitalized Costs and Improvements Depreciation Reclassified to Held for Sale March 31, 2021 Multi-family $ 153,604 $ 223 $ (1,509) $ (16,800) $ 135,518 Land - Daytona, FL 4,379 — — — 4,379 Retail shopping center and other 2,209 — (28) — 2,181 Total real estate properties $ 160,192 $ 223 $ (1,537) $ (16,800) $ 142,078 March 31, 2021 December 31, 2020 Land $ 148,341 $ 148,341 Building 1,027,979 1,029,739 Building improvements 43,955 42,698 Real estate properties 1,220,275 1,220,778 Accumulated depreciation (155,455) (145,600) Total real estate properties, net $ 1,064,820 $ 1,075,178 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | Debt obligations consist of the following (dollars in thousands): March 31, 2021 December 31, 2020 Mortgages payable $ 130,196 $ 130,997 Junior subordinated notes 37,400 37,400 Deferred financing costs (810) (880) Total debt obligations, net of deferred costs $ 166,786 $ 167,517 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and liabilities measured at fair value | Set forth below is information regarding the Company’s financial assets and liabilities measured at fair value as of March 31, 2021 (dollars in thousands): Carrying and Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Level 3 Financial Liabilities: Interest rate swap $ 18 $ — $ 18 $ — Set forth below is information regarding the Company’s financial assets and liabilities measured at fair value as of December 31, 2020 (dollars in thousands): Carrying and Fair Value Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Level 3 Financial Liabilities: Interest rate swap $ 23 $ — $ 23 $ — |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of outstanding interest rate derivatives | As of March 31, 2021, 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 swap $ 1,001 5.25 % April 1, 2022 |
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: March 31, 2021 December 31, 2020 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Accounts payable and accrued liabilities $ 18 Accounts payable and accrued liabilities $ 23 |
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 income (loss) for the dates indicated (dollars in thousands): Three Months Ended March 31, 2021 2020 Amount of (loss) gain recognized on derivative in Other Comprehensive Income $ — $ (24) Amount of (loss) gain reclassified from Accumulated Other Comprehensive Income into Interest expense $ (5) $ (1) Total amount of Interest expense presented in the Consolidated Statements of Operations $ 1,660 $ 1,860 |
Organization and Background (De
Organization and Background (Details) $ in Thousands | Mar. 31, 2021USD ($)investmentpropertystateproperty_Unit | Dec. 31, 2020USD ($)property |
Real Estate Properties [Line Items] | ||
Number of properties | property | 8 | |
Number of states | state | 6 | |
Number of units | property_Unit | 1,880 | |
Carry value of investment property | $ 142,078 | $ 160,192 |
Real estate property held for sale | 16,800 | 0 |
Investments in unconsolidated joint ventures | 164,248 | $ 169,474 |
Real estate investments, other | $ 6,617 | |
Unconsolidated joint ventures | ||
Real Estate Properties [Line Items] | ||
Number of properties | property | 31 | 31 |
Number of states | state | 9 | |
Number of units | property_Unit | 9,162 | |
Carry value of investment property | $ 1,064,820 | $ 1,075,178 |
Number of investments | investment | 31 | |
Investments in unconsolidated joint ventures | $ 164,248 | |
Unconsolidated joint ventures | Minimum | ||
Real Estate Properties [Line Items] | ||
Equity interest percentage | 32.00% | |
Unconsolidated joint ventures | Maximum | ||
Real Estate Properties [Line Items] | ||
Equity interest percentage | 90.00% | |
Multi-family | ||
Real Estate Properties [Line Items] | ||
Carry value of investment property | $ 152,317 | |
Real estate property held for sale | $ 16,800 |
Basis of Preparation (Details)
Basis of Preparation (Details) | 3 Months Ended |
Mar. 31, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Equity - Narrative (Details)
Equity - Narrative (Details) | Mar. 24, 2021$ / shares | May 07, 2021USD ($)shares | Jan. 31, 2021shares | Jan. 31, 2020 | Jun. 30, 2016shares | Mar. 31, 2021USD ($)shares | Mar. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2020USD ($)shares | Dec. 31, 2020USD ($) | Nov. 30, 2019USD ($)numberOfAgent | Sep. 12, 2019USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Dividends declared per share (in dollars per share) | $ / shares | $ 0.22 | ||||||||||
Repurchases of common stock | $ 0 | $ 616,000 | |||||||||
Effect of diluted securities (in shares) | shares | 0 | 0 | |||||||||
New Share Repurchase Program | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Beneficial interest purchased authorized amount | $ 5,000,000 | ||||||||||
Shares repurchased (in shares) | shares | 0 | 39,093 | |||||||||
Average market price of shares repurchased (in dollars per share) | $ / shares | $ 15.76 | ||||||||||
Repurchases of common stock | $ 616,000 | ||||||||||
Restricted Stock Units (RSUs) | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Compensation expense | $ 37,000 | 35,000 | |||||||||
Restricted Stock Units (RSUs) | Subsequent Event | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of awards available for grant (in shares) | shares | 250,000 | ||||||||||
Market value | $ 4,200,000 | ||||||||||
Dividends paid | $ 775,000 | ||||||||||
Shares not satisfied (in shares) | shares | 200,000 | ||||||||||
Shares forfeited (in shares) | shares | 200,000 | ||||||||||
Restricted Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Compensation expense | 501,000 | $ 403,000 | |||||||||
Deferred unearned compensation | $ 6,304,000 | $ 4,411,000 | |||||||||
Remaining weighted average vesting period | 2 years 10 months 24 days | ||||||||||
Incentive Plan 2020 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares authorized (in shares) | shares | 1,000,000 | ||||||||||
Incentive Plan 2020 | Restricted Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Issued (in shares) | shares | 156,774 | ||||||||||
Shares outstanding (in shares) | shares | 763,369 | ||||||||||
Incentive Plan 2016 | Restricted Stock Units (RSUs) | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Issued (in shares) | shares | 450,000 | ||||||||||
Vesting period for shares issued | 5 years | ||||||||||
Prior Plan | Restricted Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period for shares issued | 5 years | ||||||||||
Number of awards available for grant (in shares) | shares | 0 | ||||||||||
Private placement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of agents | numberOfAgent | 3 | ||||||||||
Common stock issued in offering | $ 30,000,000 | ||||||||||
Shares sold in offering (in shares) | shares | 694,298 | 806,261 | |||||||||
Aggregate sales price | $ 12,293,000 | $ 14,316,000 | |||||||||
Payments for commissions | 185,000 | 314,000 | |||||||||
Payments of offering related expenses | $ 31,000 | $ 56,000 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator for basic and diluted earnings (loss) per share attributable to common stockholders: | ||
Net loss attributable to common stockholders | $ (3,765) | $ (4,831) |
Denominator: | ||
Denominator for basic earnings per share—weighted average number of shares (in shares) | 17,319,222 | 16,932,252 |
Basic earnings (loss) per share (in dollars per share) | $ (0.22) | $ (0.29) |
Diluted earnings (loss) per share (in dollars per share) | $ (0.22) | $ (0.29) |
Leases - Lessor Accounting (Det
Leases - Lessor Accounting (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020USD ($)tennet | Mar. 31, 2020tennet | |
Leases [Abstract] | ||
Number of concession agreements with tenants | tennet | 2 | 2 |
Total concessions | $ | $ 75,000 |
Leases - Lessee Accounting (Det
Leases - Lessee Accounting (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)contract | Dec. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Right-of-use asset | $ 2,719 | $ 2,652 |
Lease liability | $ 2,767 | $ 2,674 |
Ground Lease | Yonkers, NY | ||
Lessee, Lease, Description [Line Items] | ||
Number of contracts | contract | 1 | |
Renewal term option | 21 years | |
Remaining term | 24 years 6 months | |
Corporate Office | Great Neck, NY | ||
Lessee, Lease, Description [Line Items] | ||
Renewal term option | 5 years | |
Remaining term | 15 years 9 months 18 days |
Real Estate Properties - Schedu
Real Estate Properties - Schedule of Real Estate Properties (Including Properties Held For Sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Real Estate [Abstract] | ||
Land | $ 23,317 | $ 25,585 |
Building | 141,143 | 154,854 |
Building improvements | 8,395 | 10,590 |
Real estate properties | 172,855 | 191,029 |
Accumulated depreciation | (30,777) | (30,837) |
Total real estate properties, net | $ 142,078 | $ 160,192 |
Real Estate Properties - Summar
Real Estate Properties - Summary of Real Estate Properties Owned (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | $ 160,192 |
Capitalized Costs and Improvements | 223 |
Depreciation | (1,537) |
Reclassified to Held for Sale | (16,800) |
Real estate properties, ending balance | 142,078 |
Multi-family | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | 153,604 |
Capitalized Costs and Improvements | 223 |
Depreciation | (1,509) |
Reclassified to Held for Sale | (16,800) |
Real estate properties, ending balance | 135,518 |
Land - Daytona, FL | Daytona, FL | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | 4,379 |
Capitalized Costs and Improvements | 0 |
Depreciation | 0 |
Reclassified to Held for Sale | 0 |
Real estate properties, ending balance | 4,379 |
Retail shopping center and other | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |
Real estate properties, beginning balance | 2,209 |
Capitalized Costs and Improvements | 0 |
Depreciation | (28) |
Reclassified to Held for Sale | 0 |
Real estate properties, ending balance | $ 2,181 |
Impairment Charges (Details)
Impairment Charges (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Business Combinations [Abstract] | ||
Impairment charges | $ 0 | $ 0 |
Real Estate Property Held For_2
Real Estate Property Held For Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Real estate property held for sale | $ 16,800 | $ 0 |
Kendall Manor, Houston, TX | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Real estate property held for sale | 24,500 | |
Book value | $ 16,800 |
Investment in Unconsolidated _3
Investment in Unconsolidated Ventures - Narrative (Details) | May 04, 2021USD ($) | Apr. 20, 2021USD ($) | Mar. 31, 2021USD ($)propertyproperty_Unit | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)property | May 07, 2021USD ($)property_Unit |
Schedule of Equity Method Investments [Line Items] | ||||||
Number of properties | property | 8 | |||||
Impairment charges | $ 0 | $ 0 | ||||
Number of units | property_Unit | 1,880 | |||||
Real estate operating expenses | $ 3,117,000 | 3,058,000 | ||||
Interest expense | 1,660,000 | 1,860,000 | ||||
Depreciation | 1,537,000 | 1,561,000 | ||||
Mortgages payable | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Debt, long-term and short-term debt, combined amount | $ 130,196,000 | $ 130,997,000 | ||||
Unconsolidated joint ventures | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of properties | property | 31 | 31 | ||||
Weighted average interest rate (as a percent) | 3.96% | 3.96% | ||||
Weighted average remaining term to maturity | 7 years 5 months 1 day | 7 years 8 months 1 day | ||||
Impairment charges | $ 2,323,000 | 0 | ||||
Insurance recoveries | $ 2,323,000 | 0 | ||||
Number of units | property_Unit | 9,162 | |||||
Rental and other revenue | $ 32,672,000 | 30,843,000 | ||||
Real estate operating expenses | 15,703,000 | 14,532,000 | ||||
Interest expense | 8,522,000 | 8,757,000 | ||||
Depreciation | 10,385,000 | $ 10,357,000 | ||||
Unconsolidated joint ventures | Texas | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Impairment charges | 2,300,000,000,000 | |||||
Insurance recoveries | $ 2,300,000,000,000 | |||||
Unconsolidated joint ventures | Anatole Apartments, Daytona Beach, FL | Property dispositions | Subsequent Event | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Gain from sale | $ 2,200,000 | |||||
Unconsolidated joint ventures | VIE | Civic Center I and Civic Center II - Southaven, MS | Property Acquisition | Subsequent Event | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 74.69% | |||||
Additional interest acquired | 14.69% | |||||
Purchase price | $ 6,031,000 | |||||
Unconsolidated joint ventures | VIE | Bells Bluff, West Nashville, TN | Property Acquisition | Mortgages payable | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Interest rate | 2.975% | |||||
Unconsolidated joint ventures | VIE | Bells Bluff, West Nashville, TN | Property Acquisition | Subsequent Event | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Purchase price | $ 28,000,000 | |||||
Unconsolidated joint ventures | VIE | Bells Bluff, West Nashville, TN | Property Acquisition | Subsequent Event | Mortgages payable | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Debt, long-term and short-term debt, combined amount | $ 47,200,000 | |||||
Unconsolidated joint ventures | VIE | Bells Bluff, West Nashville, TN | Property Acquisition | Multi-family | Subsequent Event | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Additional interest acquired | 41.90% | |||||
Number of units | property_Unit | 402 |
Investment in Unconsolidated _4
Investment in Unconsolidated Ventures - Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
ASSETS | |||
Carry value of investment property | $ 142,078 | $ 160,192 | |
Cash and cash equivalents | 19,406 | 19,885 | $ 18,707 |
Other assets | 6,910 | 7,390 | |
Total Assets | 357,953 | 365,741 | |
Liabilities: | |||
Mortgages payable | 129,698 | 130,434 | |
Accounts payable and accrued liabilities | 20,678 | 20,536 | |
Total Liabilities | 187,464 | 188,053 | |
Commitments and contingencies | |||
Equity: | |||
Total unconsolidated joint venture equity | 170,538 | 177,772 | |
Total Liabilities and Equity | 357,953 | 365,741 | |
Deferred mortgage costs | 810 | 880 | |
Mortgages payable | |||
Equity: | |||
Deferred mortgage costs | 498 | 563 | |
Unconsolidated joint ventures | |||
ASSETS | |||
Carry value of investment property | 1,064,820 | 1,075,178 | |
Cash and cash equivalents | 14,900 | 16,939 | |
Other assets | 27,667 | 29,392 | |
Total Assets | 1,107,387 | 1,121,509 | |
Liabilities: | |||
Mortgages payable | 828,591 | 829,646 | |
Accounts payable and accrued liabilities | 15,099 | 20,237 | |
Total Liabilities | 843,690 | 849,883 | |
Equity: | |||
Total unconsolidated joint venture equity | 263,697 | 271,626 | |
Total Liabilities and Equity | 1,107,387 | 1,121,509 | |
BRT's interest in joint venture equity | 164,248 | 169,474 | |
Real estate properties, net of accumulated depreciation | 155,455 | 145,600 | |
Unconsolidated joint ventures | Mortgages payable | |||
Equity: | |||
Deferred mortgage costs | $ 5,311 | $ 5,537 |
Investment in Unconsolidated _5
Investment in Unconsolidated Ventures - Summary of Real Estate Properties Owned (Details) - USD ($) $ in Thousands | May 04, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | |||
Land | $ 23,317 | $ 25,585 | |
Building | 141,143 | 154,854 | |
Building improvements | 8,395 | 10,590 | |
Real estate properties | 172,855 | 191,029 | |
Accumulated depreciation | (30,777) | (30,837) | |
Total real estate properties, net | 142,078 | 160,192 | |
Unconsolidated joint ventures | |||
Schedule of Equity Method Investments [Line Items] | |||
Land | 148,341 | 148,341 | |
Building | 1,027,979 | 1,029,739 | |
Building improvements | 43,955 | 42,698 | |
Real estate properties | 1,220,275 | 1,220,778 | |
Accumulated depreciation | (155,455) | (145,600) | |
Total real estate properties, net | $ 1,064,820 | $ 1,075,178 | |
Unconsolidated joint ventures | VIE | Civic Center I and Civic Center II - Southaven, MS | Subsequent Event | Property Acquisition | |||
Schedule of Equity Method Investments [Line Items] | |||
Purchase price | $ 6,031 |
Investment in Unconsolidated _6
Investment in Unconsolidated Ventures - Income Statement Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Total revenues | $ 7,099,000 | $ 6,924,000 |
Expenses: | ||
Real estate operating expenses | 3,117,000 | 3,058,000 |
Interest expense | 1,660,000 | 1,860,000 |
Depreciation | 1,537,000 | 1,561,000 |
Total expenses | 9,428,000 | 9,846,000 |
Total revenues less total expenses | (2,329,000) | (2,922,000) |
Impairment charges | 0 | 0 |
Consolidation of investment in limited partnership | 34,000 | 32,000 |
BRT's equity in loss from joint ventures | (3,765,000) | (4,831,000) |
Unconsolidated joint ventures | ||
Revenues: | ||
Rental and other revenue | 32,672,000 | 30,843,000 |
Total revenues | 32,672,000 | 30,843,000 |
Expenses: | ||
Real estate operating expenses | 15,703,000 | 14,532,000 |
Interest expense | 8,522,000 | 8,757,000 |
Depreciation | 10,385,000 | 10,357,000 |
Total expenses | 34,610,000 | 33,646,000 |
Total revenues less total expenses | (1,938,000) | (2,803,000) |
Other equity earnings | 9,000 | 8,000 |
Impairment charges | (2,323,000) | 0 |
Insurance recoveries | 2,323,000 | 0 |
Consolidation of investment in limited partnership | (1,929,000) | (2,795,000) |
BRT's equity in loss from joint ventures | $ (1,345,000) | $ (1,815,000) |
Debt Obligations - Summary of D
Debt Obligations - Summary of Debt Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Deferred financing costs | $ (810) | $ (880) |
Total debt obligations, net of deferred costs | 166,786 | 167,517 |
Mortgages payable | ||
Debt Instrument [Line Items] | ||
Debt, long-term and short-term debt, combined amount | 130,196 | 130,997 |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Debt, long-term and short-term debt, combined amount | $ 37,400 | $ 37,400 |
Debt Obligations - Mortgage Pay
Debt Obligations - Mortgage Payable (Details) - Mortgages payable - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | ||
Weighted average interest rate on mortgage debt (as a percentage) | 4.15% | |
Average maturity | 4 years 1 month 17 days | |
Interest expense | $ 1,429 | $ 1,475 |
Debt Obligations - Credit Facil
Debt Obligations - Credit Facility (Details) - USD ($) | Apr. 18, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Apr. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||||
Deferred costs | $ 810,000 | $ 880,000 | |||
Line of Credit | Valley National Bank | Credit Facility, Maturing April 2021 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Debt assumed, face value | $ 15,000,000 | ||||
Effective interest rate | 4.25% | ||||
Amortization of deferred fees and unused fees | $ 17,000 | $ 15,000 | |||
Deferred costs | 2,000 | $ 12,000 | |||
Unused borrowing capacity fee, percentage | 0.25% | ||||
Facility amount drawn | $ 0 | ||||
Line of Credit | Valley National Bank | Credit Facility, Maturing April 2021 | Secured Debt | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Facility amount drawn | $ 0 | ||||
Line of Credit | Valley National Bank | Credit Facility, Maturing April 2021 | Secured Debt | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Line of Credit | Valley National Bank | Credit Facility, Maturing April 2021 | Secured Debt | Floor | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 4.25% |
Debt Obligations - Junior Subor
Debt Obligations - Junior Subordinated Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Debt Obligations | |||
Deferred costs | $ 810 | $ 880 | |
Junior subordinated notes | |||
Debt Obligations | |||
Outstanding principal balance | 37,400 | 37,400 | |
Deferred costs | $ 312 | $ 317 | |
Effective interest rate | 2.21% | 3.77% | |
Interest expense | $ 214 | $ 370 | |
Junior subordinated notes | London Interbank Offered Rate (LIBOR) | |||
Debt Obligations | |||
Basis spread on variable rate | 2.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Related party - general and administrative | $ 172 | $ 226 |
Director | Advisory services | ||
Related Party Transaction [Line Items] | ||
Related party expense | 350 | 350 |
Majestic Property Management Corporation | Real Property Management Real Estate Brokerage And Construction Supervision Services | ||
Related Party Transaction [Line Items] | ||
Related party expense | 7 | 8 |
Gould Investors Limited Partnership | Shared Services Agreement | ||
Related Party Transaction [Line Items] | ||
Related party - general and administrative | $ 172 | $ 226 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - Level 2 - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Market Approach Valuation Technique | Junior subordinated notes | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 4.19% | 4.22% |
Market Approach Valuation Technique | Mortgages payable | Minimum | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 3.43% | 2.87% |
Market Approach Valuation Technique | Mortgages payable | Maximum | ||
Financial Instruments Not Measured at Fair Value | ||
Market interest rate (as a percent) | 4.09% | 3.28% |
Carrying and Fair Value | Junior subordinated notes | ||
Financial Instruments Not Measured at Fair Value | ||
Estimated fair value (lower) higher than carrying value | $ 8,596 | $ 8,670 |
Carrying and Fair Value | Mortgages payable | ||
Financial Instruments Not Measured at Fair Value | ||
Estimated fair value (lower) higher than carrying value | $ 265 | $ 3,831 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value (Details) - Interest rate swap - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Level 1 | ||
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | ||
Total Financial Liabilities | $ 0 | $ 0 |
Level 2 | ||
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | ||
Total Financial Liabilities | 18 | 23 |
Level 3 | ||
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | ||
Total Financial Liabilities | 0 | 0 |
Carrying and Fair Value | ||
Financial Instruments Measured at Fair Value: Available-for-sale securities - (Corporate equity securities) | ||
Total Financial Liabilities | $ 18 | $ 23 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Effect of derivative financial instrument on the consolidated statements of comprehensive (loss) income | |||
Estimated amount to be reclassified from accumulated other comprehensive income (loss) as an increase to interest expense | $ 18 | ||
Credit-risk-related Contingent Features | |||
Fair value of the derivative in a net liability position | 20 | $ 25 | |
Termination value to settlement of obligations | 20 | 25 | |
Interest Expense | |||
Effect of derivative financial instrument on the consolidated statements of comprehensive (loss) income | |||
Amount of (loss) gain recognized on derivative in Other Comprehensive Income | 0 | $ (24) | |
Amount of (loss) gain reclassified from Accumulated Other Comprehensive Income into Interest expense | (5) | (1) | |
Total amount of Interest expense presented in the Consolidated Statements of Operations | 1,660 | $ 1,860 | |
Accounts payable and accrued liabilities | |||
Fair value of derivative financial instruments | |||
Fair value of derivative financial instrument liability | 18 | $ 23 | |
Hedging instrument | Interest Rate Swap, Maturity Date April 1, 2022 | |||
Derivative [Line Items] | |||
Current Notional Amount | $ 1,001 | ||
Fixed Rate | 5.25% |
Uncategorized Items - brt-20210
Label | Element | Value |
Restricted Cash | us-gaap_RestrictedCash | $ 10,243,000 |
Restricted Cash | us-gaap_RestrictedCash | $ 8,511,000 |