BRT earnings analysis
What we found in BRT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
BRT delivered modest revenue growth, with second-quarter revenue up 1.1% year over year to $24.474 million and same-store NOI up to $12.374 million. However, the GAAP loss widened to $3.221 million, or $0.17 per diluted share, from $2.566 million, or $0.14, as interest expense rose 5.0% and joint-venture earnings turned into a loss. Liquidity was $53 million, but management identified $259.1 million of mortgage balloon payments due through 2028 and expects refinancing activity to increase quarterly interest expense by approximately $480,000, creating a significant funding headwind.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and Rental Income Grew
- Total revenue increased 1.1% year over year to $24.474 million from $24.197 million. Rental and other real estate revenue rose 1.3% to $24.041 million, driven by $177,000 of rental-rate and occupancy improvements and $159,000 of other revenue.
- FFO Stable Despite GAAP Loss
- Reported GAAP loss attributable to common stockholders widened to $3.221 million, or $0.17 per diluted share, from a $2.566 million loss, or $0.14 per share, in the prior-year quarter.
- Underlying Funds Metrics Held Steady
- NAREIT FFO increased to $5.505 million from $5.446 million, while AFFO was essentially unchanged at $6.849 million versus $6.847 million. AFFO per diluted share remained $0.36.
- Same-Store NOI Improved
- Same-store NOI increased to $12.374 million from $12.296 million, while six-month same-store NOI rose $725,000 to $25.768 million, reflecting higher rental revenue despite increased operating costs.
- Credit Facility Remained Undrawn
- Liquidity was approximately $53 million at August 3, 2026, consisting of $13 million of cash and cash equivalents and $40 million of credit-facility availability; the credit facility had no outstanding balance as of July 31, 2026.
- Houston Acquisition Planned
- Management anticipates acquiring a Houston multifamily property for approximately $33 million through a joint venture expected to own 70%, with an estimated $8.8 million equity contribution and approximately $23.4 million of mortgage financing.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Large Near-Term Refinancing Need
- Operating cash flow and available cash are insufficient to fully fund $259.1 million of mortgage balloon payments due through 2028, including $150.7 million at unconsolidated joint ventures. Management may need to refinance, issue equity or dispose of properties on potentially unfavorable terms.
- Higher Refinancing Costs
- The Civic 2 refinancing and contemplated refinancing are expected to increase mortgage debt by $23.6 million and raise the weighted-average interest rate from 4.21% to an estimated 4.35%; quarterly interest expense is expected to rise approximately $480,000.
- Oversupply and Leasing Pressure
- Management cited multifamily oversupply in Atlanta, Huntsville, Dallas, San Antonio, Nashville, Pensacola, LaGrange and San Marcos. Concessions used to support occupancy reduce rental income and may increase variability in results.
- Interest Expense Increased
- Interest expense increased 5.0% year over year to $5.993 million, primarily because the December 2025 refinancings added $29 million of debt at a 4.95% weighted-average rate.
- Joint Venture Earnings Weakened
- Equity in unconsolidated joint ventures declined to a $1,000 loss from $299,000 of earnings, primarily due to $445,000 of depreciation and $262,000 of lease-intangible amortization at North/Oaks.
- Transaction Execution Risk
- The planned $35 million Waterford on Piedmont acquisition was terminated on July 23, 2026, although the company received its down payment in full. The Houston acquisition is also subject to completion risk and management stated it may not close on the indicated terms or timeframe.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.17
- Operating margin
- 11.6%
- Segment
- Multifamily properties: rental and other revenue of $24.041 million, up $312,000 or 1.3% year over year.
- Segment
- Loan interest and other income: $433,000, down $35,000 or 7.5% year over year.
- Segment
- Consolidated NOI: $12.659 million, up $47,000 year over year; same-store NOI was $12.374 million, up $78,000.
What they said about what is next.
No explicit numerical revenue or EPS guidance was provided. Management disclosed quantitative forward-looking liquidity, acquisition and refinancing expectations, including $259.1 million of mortgage balloon payments due through 2028 and an anticipated $480,000 quarterly increase in interest expense.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 7, 2026
- BRT Apartments Corp. reported a slight revenue increase of 2.1% in Q1 2026 compared to Q1 2025, driven mainly by improvements in rental rates and occupancy, totaling $24.605 million. However, the company is experiencing…
- 10-K · March 13, 2026
- BRT Apartments Corp. is an internally managed REIT focused on Class B+ multi-family properties primarily in the Southeast U.S. and Texas; at December 31, 2025 it wholly-owned 21 properties (5,420 units, carrying value…
- 10-Q · August 7, 2025
- BRT reported Q2 2025 total revenues of $24,197,000 (up $335,000 or 1.4% YoY) but recorded a net loss attributable to common stockholders of $(2,566,000) or $(0.14) per share. Operating cash flow improved: net cash…
- 10-K · March 12, 2025
- BRT Apartments Corp. reports 2024 revenue of $95.63 million (2023: $93.62 million) from its multi-family portfolio but recorded a net loss attributable to common stockholders of $9.79 million (EPS: $(0.52)) versus net…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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