Brt Apartments Corp. (md) · NYSE:BRT
Brt Apartments Corp. (md) — BRT Apartments — Investor Presentation (August 2018)
22 slides from Brt Apartments Corp. (md)'s investor presentation, Aug 29, 2018
Slide 1: Investor Presentation August 2018
Mercer Crossing – Dallas, TX Factory at Garco – North Charleston, SC Pointe at Lenox Park – Atlanta, GA Investor Presentation August 2018
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 structuring capabilities to maximize return for its stockholders while mitigating risk. 3 Parkway Grande – San Marcos, TX Vanguard
Slide 4: Investments Highlights
Investments Highlights Differentiated Strategy Stable Portfolio and Proven Management Strong Growth ▪ Focused on growth Robust Pipeline with Close Alignment Opportunity markets, targeting ▪ Primarily acquire of Interests between ▪ Target assets in the assets where we can properties with 90+% Managem
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 where cap rates are still attractive with positive
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 2017 ▪ ▪ ▪ Engaged in lending on commercial and Fully exited lending and servicing Acquired 7 assets, totaling 1,728 units mixed use properties business and acquired 17 properties with ▪ Sold 7 properties with 1,580 units 5,680 units
Slide 8: BRT's Total Return Since 2017
BRT’s Total Return Since 2017 ▪ Since December 30, 2016, BRT’s total return has been 68.9%, outperforming both the S&P 500 and the MSCI U.S. REIT Index over the same time period by 38.9% and 60.5%, respectively BRT RMS S&P 500 100.0% 80.0% 68.9% 60.0% 40.0% 30.0% 20.0% 8.4% 0.0% (20.0%) 12/30/16 2/2
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 to interior and exterior of property Growth Markets ▪ Growth through active property management ▪ High barriers to e
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 Before Value Add After Value Add Actively involved in Efficient underwriting: $2 million to $
Slide 12: Focus on Growth Markets
Focus on Growth Markets Strategically Concentrated in High Employment Markets KEY PORTFOLIO FIGURES 2 % of NOI Average Monthly Rental Rate $964 STATE PROPERTIES2 UNITS2 CONTRIBUTION2 Average Property Age (Years)2 21.6 Texas4 11 3,096 28% Average Cost per Unit3 $120,823 Georgia 5 1,545 17% 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: Job Growth and Population Growth by Market
1 Job Growth and Population Growth by Market 25.0% 20.4% 20.0% 17.7% 17.2% 16.8% 15.6% 15.0% 11.6% 11.0% 10.5% 10.0% 10.0% 8.5% 8.3% 8.1% 7.7% 6.9% 6.5% 5.6% 5.0% 3.5% 2.7% 0.0% Charleston, SC Houston, TX San Antonio, TX Dallas, TX Nashville, TN Atlanta, GA Columbia, SC United States Gateway Markets
Slide 15: 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 $1,400 $1,239 100.0% $1,200 $1,058 $964 $967 $1,009 98.0% $1,000 95.3% $800 96.0% 94.1% 94.2% 94.2% 93.6% $600 94.0% $400 92.0% $200 $0 90.0% BRT NXRT IRT APTS BRG BRT IRT NXRT BRG APTS
Slide 16: Recent Acquisitions
Recent Acquisitions THE AVENUE PARC AT 980 ▪ Purchase price: $71.3 million ▪ Purchase price: $77.3 million ▪ Location: Ocoee, FL ▪ Location: Lawrenceville, GA ▪ Number of units: 522 ▪ Number of units: 586 ▪ Value-Add ▪ Value-Add ANATOLE APARTMENTS LANDINGS OF CARRIER PARKWAY ▪ Purchase price: $20.5
Slide 17: History of Value Creation Dispositions
History of Value Creation Dispositions 1 DISPOSITION DATE PROPERTY NAME LOCATION # OF UNITS BRT SHARE OF IRR GAIN ON SALE Feb-15 Water Vistas Lawrenceville, GA 170 $1.4mm 27.0% Jul-15 Palms on Westheimer Houston, TX 798 $3.1mm 23.5%2 Jul-15 Ivy Ridge Marietta, GA 207 $4.6mm 31.7% Mar-16 Grove at Tri
Slide 18: 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 CURRENT
Slide 19: 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 20: Value-Add Case Study: Houston Portfolio
Value-Add Case Study: Houston Portfolio Houston, TX PROPERTY DESCRIPTION ACQUISITION/DISPOSITION DATA VALUE ADD UPGRADES ▪ 3 class B multi-family properties located ▪ Purchased for $22.66mm, or $40,177, ▪ Upgraded interior units with new in Humble, TX and Pasadena, TX per unit, in October 2013 refri
Slide 21: Well Laddered Debt Maturities
Well Laddered Debt Maturities ▪ Weighted average rate on property debt is 4.15% 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 4.36% on June 30
Slide 22: Investment Highlights
Investment Highlights Differentiated Strategy Strong Growth Opportunity Stable Portfolio and Robust Pipeline Proven Management with Close Alignment of Interests PAGE 22