– Additional agreements in place to acquire the remaining interests in nine communities for a purchase price of $89.3 million –
Great Neck, New York – April 12, 2022 – BRT Apartments Corp. (NYSE: BRT) announced today that it has completed the acquisition of the remaining interests in joint ventures which own two multi-family properties with a total of 462 units. The purchase price for these interests was $12.8 million and since these properties are wholly owned, the Company will include the assets and liabilities of these properties on its consolidated balance sheet, including the aggregate mortgage debt currently on these properties of, as at March 31, 2022, $56.7 million, with a weighted average remaining term to maturity of 8.4 years and a weighted average interest rate of 4.04%. In total, these two properties contributed approximately $150,000 of equity to the loss of unconsolidated joint ventures in 2021.
Previously announced purchases of the remaining minority interests in joint ventures that own three multi-family properties containing 602 units are expected to be completed in the coming months. The aggregate purchase price for these interests is $17.3 million and following the completion of these three purchases, BRT will include in its consolidated balance sheets the mortgage debt currently on these properties in an aggregate principal amount, as of March 31, 2022. , of $40.9 million with a weighted average remaining term to maturity of 4.7 years and a weighted average interest rate of 4.35%.
In addition, the Company has entered into agreements to purchase the remaining minority interests in joint ventures which own six multi-family properties totaling 1,780 units. The purchase price for these interests is approximately $72.1 million and following the completion of these purchases, the Company will include in its consolidated balance sheets the mortgage debt currently on five of these properties of approximately $128.2 million. dollars with a weighted average remaining term to maturity of 5.9 years and a weighted average interest rate of 4.17%; the company also expects to secure approximately $19 million in ten-year mortgage debt with an interest rate of 4.25% on the sixth property.
Overall, the Company now has pending agreements to purchase the remaining minority interests in joint ventures that own nine multi-family properties with a total of 2,382 units. The aggregate purchase price for these interests is $89.4 million and, assuming the completion of these purchases, the Company will include in its consolidated balance sheets the mortgage debt currently on eight properties which, as of March 31, 2022, will amounted to a total principal amount of $169.2. with a weighted average remaining life of 5.6 years and a weighted average interest rate of 4.22% and, on the ninth property, mortgage debt of approximately $19 million over ten years. The mortgage debt on the two recently completed purchases is, and the mortgage debt on the nine properties to be acquired will be, without recourse against us, subject to the usual exclusionary guarantees. The completion of these nine purchases is subject to customary closing conditions (including the approval of the holder(s) of the majority of the applicable mortgage debt). In 2021, these nine properties contributed a total of $1.0 million of equity to unconsolidated joint venture earnings.
The Company expects to fund the purchases of the remaining interests in the nine joint ventures described above with available cash, a portion of the proceeds from the anticipated ten-year mortgage financing of $19 million, the availability of its credit facility, the sale of common stock in accordance with its market share issuance program and proceeds from potential property sales, and expects to acquire these interests in the coming months. Once purchased, this property will be wholly owned and the accounts (i.e. assets and liabilities, including mortgage debt) and operations (i.e. income and expenses) of such property will be included directly, from the date of such purchase, in the consolidated balance sheets and consolidated statement of income of BRT, respectively. As a result, BRT expects its revenues, total expenses, assets and liabilities to increase significantly.
Including the purchase of the remaining minority interests in the joint ventures that own these eleven properties, BRT will wholly own 21 properties with 5,420 units and hold interests in 11 multi-family properties with 3,565 units.
Jeffrey A. Gould, CEO and President, said, “We are extremely pleased to announce these transactions, which collectively represent $102.2 million in investments, and a major step forward in our efforts to grow our portfolio. and improve our cash flow through the acquisition of our minority partners’ remaining interests in quality apartment buildings. The measures we have taken over the past year to improve the flexibility of our capital structure have put us in a position to play the offensive, and the closing of these eleven acquisitions will, since the beginning of the year, double the number of units in our consolidated portfolio. Looking to the future, we believe we can continue to execute our growth plans to expand our consolidated portfolio in a strategic and accretive manner.
Certain information contained herein is forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. BRT intends that these forward-looking statements are covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for the purposes of complying with such safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe BRT’s future plans, strategies and expectations, are generally identifiable by the use of the words “may”, “will”, “believe”, “expect”, “intends”, “anticipates”, “estimates”, “plans”, or similar expressions or variations thereof. Information regarding certain important factors that could cause actual results or other events to differ materially from these forward-looking statements is contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (and in particular the sections entitled “Cautionary Note Regarding Forward-Looking Statements”, “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” included therein) and other reports filed with the Securities Exchange Commission thereafter. In addition, estimates of anticipated financings and purchases and sales of properties may not be realized on the terms indicated, may not be realized within the period indicated or may not be realized at all, and estimates of gains from the sale of properties are subject to adjustment, among other things, because actual closing costs (including prepayment charges) may differ from estimated costs. You should not rely on forward-looking statements as they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could materially affect actual results, performance or achievements. .
About BRT Apartments Corp. :
BRT is a real estate investment trust that owns, operates and, to a lesser extent, develops multi-family properties. Additional financial and descriptive information about BRT, its business and its portfolio can be found on BRT’s website at: www.brtapartments.com. Interested parties are encouraged to review BRT’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and other reports subsequently filed with the Securities and Exchange Commission for additional information.
Contact: Investor Relations
BRT Apartments Corp.
60 Cutter Mill Road
Big Neck, New York 11021
Telephone (516) 466-3100
Fax (516) 466-3132