Brt Apartments Corp. (md) · NYSE:BRT
Brt Apartments Corp. (md) — BRT Apartments — Investor Presentation (September 2020)
25 slides from Brt Apartments Corp. (md)'s investor presentation, Sep 17, 2020
Slide 1: Investor Presentation September 2020
Mercer Crossing – Dallas, TX The Avenue – Ocoee, FL Pointe at Lenox Park – Atlanta, GA Investor Presentation September 2020
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 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. 3 Parkway Grande – San Marcos,
Slide 4: Investment Highlights
Investments Highlights Differentiated Strategy Stable Portfolio and Proven Management Scalable Growth . Focused on growth Historically Robust team, closely aligned Opportunity markets, targeting Pipeline with Stockholders . Target assets in the assets where we can . Primarily acquire . Management an
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 . Focus on opportunities in Sun Belt markets where we anticipate cap rates will be attractive
Slide 6: Proven Senior Management Team
Proven Senior Management Team More than 35 Years experience in Multi-family Jeffrey A. Gould, Ryan W. Baltimore, President and CEO Senior Vice President President and CEO since 2002 Corporate Strategy and Finance Senior Vice President and Member of the Board of Directors of One Liberty Properties, I
Slide 7: Decades of Demonstrated Success in Multi-Family
Decades of Demonstrated Success in Multi-Family Timeline of Business Operations 1983 - 2011 2011 - 2016 2017 - 2020 . Engaged in lending on . Commenced multi-family . Announced quarterly commercial and mixed use investing strategy dividend of $0.18 per share properties in 2017 . . Fully exited lendi
Slide 8: BRT's Total Return Since 2017
BRT’s Total Return Since 2017 . Since January 1, 2017, BRT’s total return has been 64.8%, outperforming both the S&P 500 and the MSCI U.S. REIT Index over the same time period by 4.0% and 56.4%, respectively 64.8% 60.8% 8.4% PAGE 8 Source: SNL Note: As of August 13, 2020
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 . Generate 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 advertised pub
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 Actively involved in Efficient underwriting: $4 million to $20 million operations and asset management primarily equity investment manag
Slide 12: Focus on Growth Markets
Focus on Growth Markets Strategically Diversified in Sun Belt Markets KEY PORTFOLIO FIGURES 3,5 % of NOI Average Monthly Rental Rate $1,085 2 2 STATE PROPERTIES UNITS CONTRIBUTION3 Average Property Age (Years)2,3 20 Texas 10 3,025 21% Average Cost per Unit4 $129.4k Georgia 5 1,545 15% South Carolina
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 $1,600 100.0% $1,409 $1,400 $1,329 98.0% $1,200 $1,105 $1,108 $1,109 $1,000 96.0% 95.3% 95.3% $800 94.7% $600 94.0% 92.9% 93.1% $400 92.0% $200 $0 90.0% BRT IRT NXRT BRG APTS IRT BRT APTS
Slide 15: Recent Acquisitions
Recent Acquisitions THE VILLAGE AT LAKESIDE ABBOTTS RUN . Projected stabilized cap rate: 5.7% . Projected stabilized cap rate: 7.7% . Purchase price: $18.4 million . Purchase price: $38.0 million . Location: Auburn, AL . Location: Wilmington, NC . Number of units: 200 . Number of units: 264 . Value
Slide 16: History of Value Creation: Dispositions
History of Value Creation Dispositions 1 DISPOSITION DATE PROPERTY NAME LOCATION # OF UNITS BRT SHARE OF IRR 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 Cour
Slide 17: Value-Add Case Study: Mississippi Portfolio
Value-Add Case Study: Mississippi Portfolio Southhaven, MS PROPERTY DESCRIPTION ACQUISITION DATA VALUE ADD UPGRADES . 2 class B multi-family properties located . Civic Center 1 purchased for $35mm, or . Upgraded interior units with new cabinet in Southaven, Mississippi. $89,286, per unit doors, resu
Slide 18: Development Transactions
Development Transactions 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 6% . Willing to provide at least 50% of the required equity with wel
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 2.76% o
Slide 20: Investment Highlights
Investment Highlights Differentiated Niche Strategy Scalable Growth Opportunity Stable Portfolio and Robust Pipeline Proven Management with Close Alignment of Interests PAGE 20
Slide 21: Appendix: Non-GAAP Financial Measures, Definitions and Reconciliations
Appendix Non-GAAP Financial Measures, Definitions and Reconciliations
Slide 22: NOI
A-1 NOI 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 unconsoli
Slide 23: Unconsolidated joint ventures balance sheets
A-2 At June 30, 2020, the Company held interests in unconsolidated joint ventures that own 31 multi-family properties (the "Unconsolidated Properties"). The condensed balance sheets below present information regarding such properties (dollars in thousands): June 30, 2020 ASSETS Real estate propertie
Slide 24: Principal payments: consolidated and unconsolidated
A-3 Consolidated Percent of Total Principal Payments Year Total Principal Payments Scheduled Amortization Principal Payments Due at Maturity Due At Maturity Weighted Average Interest Rate (1) 2020 $ 1,536 $ 1,536 $ — — — 2021 17,274 3,272 14,002 12 % 4.29 % 2022 62,543 1,924 60,619 54 % 4.29 % 2023
Slide 25: Combined principal payments
A-4 Combined Percent of Total Principal Payments Year Total Principal Payments Scheduled Amortization Principal Payments Due at Maturity Due At Maturity Weighted Average Interest Rate (1) 2020 $ 2,769 $ 2,769 $ — — — 2021 39,758 6,639 33,119 6 % 3.68 % 2022 110,462 6,384 104,078 18 % 4.06 % 2023 30,
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