BRT Apartments Corp. Reports Q2 2025 Financial Results with $24.2M Revenue

BRT Apartments Corp. reported its financial results for the second quarter of 2025, revealing total revenues of $24.2 million, a 1.4% increase from $23.9 million in the same period last year. The company's rental and other revenue from real estate properties slightly decreased to $23.7 million from $23.8 million, primarily due to a decline in ancillary income and rental rates, offset by improvements in occupancy and tenant reimbursements. Loan interest and other income surged to $468,000, up from $84,000, largely driven by interest income from preferred equity investments initiated in late 2024.

In terms of expenses, BRT's total costs rose to $27.1 million from $26.6 million, marking a 2.0% increase. Real estate operating expenses increased by 2.5% to $11.1 million, attributed to higher repair and maintenance costs, while interest expenses also saw a rise due to financing activities related to property acquisitions. The company reported a net loss attributable to common stockholders of $2.6 million, compared to a loss of $2.3 million in the prior year, resulting in a loss per share of $0.14, slightly higher than the $0.13 reported in the same quarter of 2024.

BRT's operational metrics indicate that the company wholly owns 21 multi-family properties with a total of 5,420 units, while also holding interests in eight additional properties through unconsolidated joint ventures. The company’s total assets decreased to $699.6 million from $713.5 million at the end of 2024, with a notable decline in cash and cash equivalents. The company’s equity also fell to $192.1 million from $205.0 million, reflecting an increase in the accumulated deficit, which now stands at $81.9 million.

Strategically, BRT has been active in expanding its portfolio, recently acquiring a 214-unit multi-family property in Auburn, Alabama, for $36.5 million, financed through a combination of mortgage debt and a draw from its credit facility. The company continues to explore alternative investments in the multi-family sector, including preferred equity investments and joint ventures, as it navigates a challenging acquisition environment characterized by high interest rates and limited opportunities.

Looking ahead, BRT anticipates increased mortgage interest expenses as it faces refinancing challenges for approximately $174.5 million in principal balances maturing through 2027. The company remains focused on maintaining its REIT status and managing its liquidity, with available cash and credit facility access totaling approximately $49 million as of August 1, 2025. BRT's management is committed to evaluating its dividend policy in light of operational cash flow and liquidity requirements, with a quarterly cash distribution of $0.25 per share recently paid to stockholders.