Brt Apartments Corp. (md) · NYSE:BRT
Brt Apartments Corp. (md) — BRT Apartments — Investor Presentation (January 2019)
21 slides from Brt Apartments Corp. (md)'s investor presentation, Jan 24, 2019
Slide 1: Investor Presentation January 2019
Mercer Crossing – Dallas, TX The Avenue – Lawrenceville, GA Pointe at Lenox Park – Atlanta, GA Investor Presentation January 2019
Slide 2: Safe Harbor
Safe Harbor Certain information contained in this presentation, together with other cause actual outcomes or other events to differ materially from any such statements and information publicly disseminated by BRT Apartments forward-looking statements appear in the Company’s Annual Report on Corp. (t
Slide 3: BRT Apartments company overview
BRT Apartments is an owner and operator of Class 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. 3 Parkway Grande – San Marcos, TX Van
Slide 4: Investments Highlights
Investments Highlights Differentiated Strategy Stable Portfolio and Proven Management Scalable Growth ▪ Focused on growth Robust Pipeline team, closely aligned Opportunity markets, targeting ▪ Primarily acquire with Stockholders ▪ Target assets in the assets where we can properties with 90+% ▪ Manag
Slide 5: Capitalizing on Favorable Multi-Family Trends
Capitalizing on Favorable Multi-Family Trends ▪ Multi-family apartments have seen tremendous growth in recent years due to high demand, driven partially by millennial’s preference to rent rather than to buy ▪ Buying opportunities in Sun Belt markets with positive net migration in the millennial age
Slide 6: Proven Senior Management Team
Proven Senior Management Team More than 30 Years experience in Multi-family Jeffrey A. Gould, Ryan W. Baltimore, President and CEO Vice President President and CEO since 2002 Vice President Senior Vice President and Member of the Board Corporate Strategy and Portfolio Management of Directors of One
Slide 7: Decades of Demonstrated Success in Multi-Family
Decades of Demonstrated Success in Multi-Family Pre-2012 2014-2015 2018 ▪ ▪ ▪ Engaged in lending on commercial and Fully exited lending and servicing Acquired 6 assets, totaling 1,921 units mixed use properties business and acquired 17 properties with ▪ Sold 3 properties with 1,386 units 5,680 units
Slide 8: BRT's Total Return Since 2017
BRT’s Total Return Since 2017 ▪ Since January 1, 2017, BRT’s total return has been 84.3%, outperforming both the S&P 500 and the MSCI U.S. REIT Index over the same time period by 61.6% and 77.8%, respectively BRT RMZ S&P 500 100.0% 84.3% 80.0% 60.0% 40.0% 20.0% 22.7% 6.5% 0.0% (20.0%) 1/1/17 4/1/17
Slide 9: Differentiated Strategy Creating Meaningful Value
Differentiated Strategy Creating Meaningful Value ▪ Target assets with high NOI growth potential Focus on ▪ Create value through re-tenanting, repositioning, and value-add renovations Growth ▪ Markets Growth through active property management ▪ High barriers to entry; minimal new development; less i
Slide 10: Joint Venture Strategy
Joint Venture Strategy Creating Value through Strong Operating Partnerships ▪ Receive numerous opportunities from both existing partners and potential partners through a strong network built Strong Deal from the successful lending platform and equity partnerships in the past Flow ▪ Have never advert
Slide 11: Acquisition Approach and Strategy
Acquisition Approach and Strategy Harnessing Partner Network to Facilitate Capital Deployment ACTIVE CONSERVATIVE TYPICAL DEAL CAPITAL PARTNER UNDERWRITING METRICS ILLUSTRATIVE VALUE ADD DEAL CAPITALIZATION - $60mm Transaction Before Value Add After Value Add Actively involved in Efficient underwrit
Slide 12: Focus on Growth Markets
Focus on Growth Markets Strategically Concentrated in High Employment Markets KEY PORTFOLIO FIGURES 3 % of NOI Average Monthly Rental Rate $964 2 2 STATE PROPERTIES UNITS CONTRIBUTION3 Average Property Age (Years)2 22.5 Texas 11 3,096 27% Average Cost per Unit4 $122,298 Georgia 5 1,545 15% Florida 4
Slide 13: Partnering with Private Owner/Operators
Partnering with Private Owner/Operators Strong partnerships with national operators who manage/own 100,000+ units PAGE 13 | Note: Select group of BRT partners
Slide 14: Upside in Rents Due to Strong Value-Add Program and Stable Occupancy
Upside in Rents Due to Strong Value-Add Program and Stable Occupancy AVERAGE RENT PER UNIT1 PORTFOLIO OCCUPANCY1/2 $1,600 100.0% $1,336 $1,400 $1,253 $1,200 98.0% $964 $979 $1,009 $1,000 95.6% 96.0% $800 95.0% 94.1% $600 93.8% 93.9% 94.0% $400 $200 92.0% $0 BRT NXRT IRT BRG APTS 90.0% NXRT BRT IRT B
Slide 15: Recent Acquisitions
Recent Acquisitions PARC AT 980 ANATOLE APARTMENTS ▪ Stabilized cap rate: 5.5% ▪ Stabilized cap rate: 5.7% ▪ Purchase price: $77.3 million ▪ Purchase price: $20.5 million ▪ Location: Lawrenceville, GA ▪ Location: Daytona Beach, FL ▪ Number of units: 586 ▪ Number of units: 208 ▪ Value-Add, renovation
Slide 16: History of Value Creation Dispositions
History of Value Creation Dispositions DISPOSITION DATE PROPERTY NAME LOCATION # OF UNITS BRT SHARE OF IRR2 GAIN ON SALE1 Jul-15 Ivy Ridge Marietta, GA 207 $4.6mm 31.7% Mar-16 Grove at Trinity Pointe Cordova, TN 464 $4.5mm 21.2% Mar-16 Mountain Park Estates Kennesaw, GA 450 $6.3mm 26.0% Apr-16 Court
Slide 17: Development Opportunities
Development Opportunities Superior Locations with Limited New Supply ▪ Pursue Class A / A+ new construction in emerging ▪ Garden style or mid-rise construction Southeast US markets ▪ Targeting unlevered stabilized return of at least 7% ▪ Willing to provide at least 50% of the required equity with we
Slide 18: Development Case Study Greenville, SC
Development Case Study Greenville, SC PROPERTY DESCRIPTION ACQUISITION DATA DEVELOPMENT RETURN ON INVESTMENT ▪ Brand new construction ▪ Purchased land for ▪ Development was completed on time ▪ Property sold in October in downtown Greenville $7mm in January 2014 and budget 2016 for $68mm or $188,888
Slide 19: Value-Add Case Study: Houston Portfolio
Value-Add Case Study: Houston Portfolio Houston, TX PROPERTY DESCRIPTION ACQUISITION DATA VALUE ADD UPGRADES ▪ ▪ 3 class B multi-family properties located Purchased for $22.66mm, or $40,177, per ▪ Upgraded interior units with new unit, in October 2013 in Humble, TX and Pasadena, TX refrigerators, ra
Slide 20: Well Laddered Debt Maturities
Well Laddered Debt Maturities ▪ Weighted average interest rate on property debt is 4.14% with a weighted averaged remaining term to maturity of 6.7 years1 ▪ Attractive corporate level subordinated notes bear interest at the rate of 3M LIBOR + 200bps and mature on April 30, 2036. The rate was 4.34% o
Slide 21: Investment Highlights
Investment Highlights Differentiated Strategy Scalable Growth Opportunity Stable Portfolio and Robust Pipeline Proven Management with Close Alignment of Interests PAGE 21
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