Brt Apartments Corp. (md) · NYSE:BRT
Brt Apartments Corp. (md) — BRT Apartments — Investor Presentation (January 2018)
20 slides from Brt Apartments Corp. (md)'s investor presentation, Jan 9, 2018
Slide 1: Investor Presentation January 8, 2018
Investor Presentation January 8, 2018 Mercer Crossing – Dallas, TX Factory at Garco – North Charleston, SC 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 27 A of the Securities Act of 1933 , as amended, and Section 21 E o
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 structuring capabilities to maximize return for its stockholders while mitigating risk. Parkway Grande – San Marcos, TX Verand
Slide 4: Investments 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
Capitalizing on Favorable Multi - family Trends PAGE 5 Net Migration from Snow Belt to Sun Belt ▪ 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 market
Slide 6: Proven Senior Management Team
Proven Senior Management Team More than 30 Years experience in Multi - family PAGE 6 Ryan W. Baltimore, Vice President Vice President Corporate Strategy and Portfolio Management Mitchell K. Gould, Executive Vice President Executive Vice President Acquisitions and Asset Management Jeffrey A. Gould, P
Slide 7: Decades of Demonstrated Success in Multi-family
Decades of Demonstrated Success in Multi - family PAGE 7 1983 – 2012 2012 - PRESENT 2015 ▪ Announced internalization of management ▪ Acquired 4 properties with 1,506 units ▪ Sold 3 properties with 1,175 units ▪ Started development of 271 units in North Charleston, SC 2014 ▪ Fully exited lending and
Slide 8: Differentiated Strategy Creating Meaningful Value
Differentiated Strategy Creating Meaningful Value PAGE 8 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 developm
Slide 9: Joint Venture Strategy
Joint Venture Strategy Creating Value through Strong Operating Partnerships PAGE 9 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 - i
Slide 10: Acquisition Approach and Strategy
Acquisition Approach and Strategy Harnessing Partner Network to Facilitate Capital Deployment PAGE 10 Actively involved in operations and asset management Strong local partner expertise accelerates site selection and enhances diligence process ILLUSTRATIVE VALUE ADD DEAL CAPITALIZATION Efficient und
Slide 11: Focus on Growth Markets
Focus on Growth Markets Strategically Concentrated in High Employment Markets PAGE 11 KEY PORTFOLIO FIGURES Average Monthly Rental Rate 3/4 $933 Average Property Age (Years) 2 22.3 Average Cost per Unit 4 $108,007 Geographically Diverse Portfolio [1] Primarily reflects amounts from properties includ
Slide 12: Partnering with Private Owner/Operators
Partnering with Private Owner/Operators Strong partnerships with national operators who manage/own 100,000+ units PAGE 12 | Note: Select group of BRT partners
Slide 13: Job Growth and Population Growth by Market
Job Growth and Population Growth by Market 1 PAGE 13 | Source: Bureau of Labor Statistics (August 2017 Data), SNL [1] Select Southeast and Midwest Locations 15.6% 10.5% 16.8% 17.2% 20.4% 17.7% 11.6% 11.0% 10.0% 10.8% 10.1% 10.1% 9.6% 8.9% 7.9% 6.4% 3.9% 2.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Charles
Slide 14: Portfolio occupancy, rent and NOI growth vs peers
PORTFOLIO OCCUPANCY 1/2 AVERAGE RENT PER UNIT 1 Upside in rents due to Strong Value - Add Program and Stable Occupancy PAGE 14 SAME STORE NOI GROWTH YOY 1 AVERAGE AGE OF PROPERTY (YEARS) 3 [1] As of September 30, 2017 [2] Average occupancy for BRT excludes properties that are not stabilized and Retr
Slide 15: History of Value Creation Dispositions
History of Value Creation Dispositions DISPOSITION DATE PROPERTY NAME LOCATION # OF UNITS BRT SHARE OF GAIN ON SALE IRR 1 TOTAL WEIGHTED AVERAGE 5,165 $71.0mm Water Vistas Palms on Westheimer Ivy Ridge Grove at Trinity Pointe Mountain Park Estates Courtney Station Madison at Schilling Farms Village
Slide 16: Development Opportunities
Columbia, SC $60,697,000 $22,520,906 338 ▪ Framing completed on 1 building and underway on 2 of the buildings ▪ To date we are on budget and on - time Nashville, TN $73,263,000 $10,447,791 402 ▪ Land has been cleared and site work has commenced Development Opportunities Superior Locations with Limit
Slide 17: Value-Add Case Study: Houston Portfolio
Value - Add Case Study: Houston Portfolio Houston, TX PAGE 17 ▪ 3 class B multi - family properties located in Humble, TX and Pasadena, TX ▪ Built in 1982,1983,1984 ▪ 564 units PROPERTY DESCRIPTION ▪ Purchased for $22.66mm, or $40,177, per unit, in October 2013 ▪ Blended acquisition cap rate of 6.44
Slide 18: Development Case Study Greenville, SC
Development Case Study Greenville, SC PAGE 18 PROPERTY DESCRIPTION ▪ Brand new construction in downtown Greenville market ▪ 360 unit mid - rise mixed use apartment complex ▪ Built in 2016 ACQUISITION DATA ▪ Purchased land for $7mm in January 2014 ▪ Development budget of $51.5mm, or $143,000 per unit
Slide 19: Well Laddered Debt Maturities
Well Laddered Debt Maturities PAGE 19 ▪ Weighted average rate on property debt is 4.03% with a weighted averaged remaining term to maturity of 6.9 years (1) ▪ Attractive corporate level subordinated notes bear interest at the rate of 3M LIBOR+ 200bps and mature in 2036. Current rate is 3.31% DEBT MA
Slide 20: Investment Highlights
Investment Highlights PAGE 20 Strong Growth Opportunity Proven Management with Close Alignment of Interests Differentiated Strategy Stable Portfolio and Robust Pipeline
BRT Apartments — Investor Presentation (January 2018) on 6ix