Brt Apartments Corp. (md) · NYSE:BRT
Brt Apartments Corp. (md) — BRT Apartments — Investor Presentation (March 2021)
25 slides from Brt Apartments Corp. (md)'s investor presentation, Mar 18, 2021
Slide 1: Investor Presentation March 2021
Investor Presentation March 2021 Mercer Crossing – Dallas, TX The Avenue – Ocoee, FL Pointe at Lenox Park – Atlanta, GA
Slide 2: Safe Harbor
Certain information contained in this presentation, together with other statements and information publicly disseminated by BRT Apartments Corp. (the “Company”), constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Slide 3: BRT Apartments company overview
BRT Apartments is an owner and operator of Class B and B+ value-add and select Class A multi-family assets primarily in superior Sun Belt locations. The Company uses its expert real estate and investment experience to maximize risk-adjusted return for its stockholders. Parkway Grande – San Marcos, T
Slide 4: Investment Highlights
Investments Highlights PAGE 4 Differentiated Strategy ▪ Focused on growth markets, targeting assets where we can create value using repositioning and renovation programs ▪ Extensive JV network mitigating risk and expanding our ability to grow into ideal markets ▪ Purchase price between $20 million a
Slide 5: Capitalizing on Favorable Multi-Family Trends
16.1% 18.3% 21.9% 9.4% 25.8% 18.9% 4.4% 7.2% 1.8% 9.7% 9.6% 10.3% 11.4% 8.8% 7.4% 5.3% 4.9% 4.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Charleston, SC Dallas, TX San Antonio, TX Houston, TX Nashville, TN Atlanta, GA Columbia, SC United States Gateway Markets Employment Growth (2014-2020) Expected P
Slide 6: Proven Senior Management Team
David W. Kalish, Senior Vice President Finance More than 35 Years experience in Multi-family Proven Senior Management Team PAGE 6 Ryan W. Baltimore, Senior Vice President Corporate Strategy and Finance Mitchell K. Gould, Executive Vice President Acquisitions and Asset Management George E. Zweier, Ch
Slide 7: Decades of Demonstrated Success in Multi-Family
PAGE 7 ▪ Engaged in lending on commercial and mixed use properties ▪ Significant involvement in multi-family apartments and other real estate assets 1983 - 2011 Timeline of Business Operations Decades of Demonstrated Success in Multi-Family ▪ Commenced multi-family investing strategy ▪ Fully exited
Slide 8: BRT's Total Return Since 2017
BRT’s Total Return Since 2017 PAGE 8 ▪ Since January 1, 2017, BRT’s total return has been 198.6%, outperforming both the S&P 500 and the MSCI U.S. REIT Index over the same time period by 110.6% and 175.8%, respectively Source: SNL Note: As of March 11, 2021 198.6% 22.8% 88.0%
Slide 9: Differentiated Strategy Creating Meaningful Value
Meaningful Value Differentiated Strategy Creating PAGE 9 Focus on Growth Markets ▪ Target assets with high NOI growth potential ▪ Create value through re-tenanting, repositioning, and value-add renovations ▪ Growth through active property management ▪ High barriers to entry; minimal new development;
Slide 10: Joint Venture Strategy
Creating Value through Strong Operating Partnerships Joint Venture Strategy PAGE 10 Strong Deal Flow Flexibility ▪ Ability to enter and exit markets through a strong network ▪ High “hit-rate” and efficiencies on deals as we only review deals when under contract ▪ Have the ability to choose best-in-c
Slide 11: Acquisition Approach and Strategy
Harnessing Partner Network to Facilitate Capital Deployment Acquisition Approach and Strategy PAGE 11 Actively involved in operations and asset management Strong local partner expertise accelerates site selection and enhances diligence process Efficient underwriting: management primarily considers d
Slide 12: Strategically Diversified in Sun Belt Markets
PAGE 12 Strategically Diversified in Sun Belt Markets Focus on Growth Markets KEY PORTFOLIO FIGURES Average Monthly Rental Rate3,5 $1,088 Average Property Age (Years)2,3 20 Average Cost per Unit4 $129.4k Geographically Diverse Portfolio Texas Georgia South Carolina Florida Alabama Mississippi Tennes
Slide 13: Partnering with Private Owner/Operators
Strong partnerships with national operators who manage/own 100,000+ units Partnering with Private Owner/Operators PAGE 13 Note: Select group of BRT partners
Slide 14: Upside in Rents Due to Strong Value-Add Program and Stable Occupancy
PORTFOLIO OCCUPANCY1AVERAGE RENT PER UNIT1 Upside in Rents Due to Strong Value-Add Program and Stable Occupancy PAGE 14 Q4 2020 SAME STORE NOI GROWTH2AVERAGE AGE OF PROPERTY (YEARS)1 Source: Company Filings, SNL [1] As of the quarter ending December 31, 2020 [2] Q4 2019 to Q4 2020 6 17 18 20 33 0 5
Slide 15: Sample Acquisitions
THE VILLAGE AT LAKESIDE THE VIVE AT KELLSWATER ABBOTTS RUN Sample Acquisitions PAGE 15 ▪ Projected stabilized cap rate: 5.2% ▪ Purchase price: $48.6 million ▪ Location: Kannapolis, NC ▪ Number of units: 312 Source: Company Filings SOMERSET AT TRUSSVILLE ▪ Projected stabilized cap rate: 6.0% ▪ Purcha
Slide 16: Dispositions: History of Value Creation
DISPOSITION DATE Dispositions History of Value Creation TOTAL 6,836 $123.6mm PROPERTY NAME Ivy Ridge Grove at Trinity Pointe Mountain Park Estates Courtney Station Madison at Schilling Farms Village Green Sundance Southridge Spring Valley Sandtown Vista Autumn Brook Meadowbrook Parkside Ashwood Park
Slide 17: Value-Add Case Study: Mississippi Portfolio
▪ Civic Center 1 purchased for $35mm, or $89,286, per unit ▪ Civic Center 2 purchased for $38.205mm, or $99,492, per unit ▪ Blended acquisition cap rate of 6.1% (based on projected NOI and total cost) ▪ Civic 1 capex budget of $1.940,400 or $4,950, per unit ▪ Civic 2 capex budget of $1,655,800 or pe
Slide 18: Development Transactions
Columbia, SC $60,697,000 $59,994,000 339 ▪ Occupancy is 85% as of 12/31/2020 Nashville, TN $73,263,000 $72,324,000 402 ▪ Occupancy is 74% as of 12/31/2020 Superior Locations with Limited New Supply Development Transactions PAGE 18 ▪ Pursue Class A / A+ new construction in emerging Southeast US marke
Slide 19: Well Laddered Debt Maturities
Well Laddered Debt Maturities ▪ Weighted average interest rate on property debt is 4.04% with a weighted averaged remaining term to maturity of 7.2 years1 ▪ Attractive corporate level subordinated notes bear interest at the rate of 3M LIBOR + 200bps and mature on April 30, 2036. The rate was 2.21% o
Slide 20: Investment Highlights
Investment Highlights PAGE 20 Scalable Growth Opportunity Proven Management with Close Alignment of Interests Differentiated Niche Strategy Stable Portfolio and Robust Pipeline
Slide 21: Appendix: Non-GAAP Financial Measures, Definitions and Reconciliations
Appendix Non-GAAP Financial Measures, Definitions and Reconciliations
Slide 22: NOI and Same Store NOI definitions
A-1 PAGE 22 We compute NOI by taking rental revenues less property operating expenses, and with respect to our unconsolidated properties, we use our pro rata share of such amounts. We define "Same Store NOI" as NOI for all our consolidated properties and our pro rata share of the operations of uncon
Slide 23: Unconsolidated joint venture condensed balance sheet
A-2 PAGE 23 December 31, 2020 ASSETS Real estate properties, net of accumulated depreciation of $145,600 $ $1,075,178 Cash and cash equivalents 16,939 Other assets 29,392 Total Assets $ 1,121,509 LIABILITIES AND EQUITY Liabilities: Mortgages payable, net of deferred costs of $563 $ 829,646 Accounts
Slide 24: Principal payment schedule
A-3 PAGE 24 Consolidated Year Total Principal Payments Scheduled Amortization Principal Payments Due at Maturity Percent of Total Principal Payments Due At Maturity Weighted Average Interest Rate (1) 2021 $ 17,274 $ 3,272 $ 14,002 12 % 4.29 % 2022 62,543 1,924 60,619 54 % 4.29 % 2023 1,270 1,270 — —
Slide 25: Debt summary and credit facility
A-4 PAGE 25 Weighted Average Remaining Term to Maturity (2) 7.2 years Weighted Average Interest Rate (2) 4.04 % Debt Service Coverage Ratio for the quarter ended December 31, 2020 1.55 (3) (1) Based on balloon payments at maturity. Includes consolidated and BRT pro rata share amounts. (2) Includes c