Brt Apartments (BRT) Q2 Revenue Up 1.4%

Key Points

• Non-GAAP earnings per share and GAAP revenue both surpassed analyst estimates, with adjusted funds from operations (AFFO) also showing modest growth.

• Combined portfolio net operating income (non-GAAP) declined as operating expenses rose.

• The quarterly dividend remained at $0.25 per share, while management did not offer explicit financial guidance for the months ahead.

• These 10 stocks could mint the next wave of millionaires ›

Brt Apartments (NYSE:BRT), an owner and operator of multi-family rental properties in high-growth U.S. regions, released its financial results on August 7, 2025. The company outperformed analyst estimates, reporting adjusted funds from operations (AFFO, non-GAAP) per diluted share of $0.36, much higher than the forecast of $(0.15). Revenue (GAAP) reached $24.20 million, also above the $24.01 million analyst expectation (GAAP). The quarter also saw a decline in net operating income. Overall, the company posted solid headline results, but softer operating fundamentals and rising costs remain notable factors.

Source: Analyst estimates provided by FactSet.

Business Overview and Focus Areas

The company operates a portfolio of 29 multi-family properties, mostly in the Southeast and Texas. These are garden-style and mid-rise apartments that cater to renters seeking amenities such as swimming pools and clubhouses. Brt Apartments typically targets properties of Class B or better quality.

Recent business priorities have included expanding its portfolio through selective acquisitions, managing debt proactively, and collaborating with partners through joint ventures. Success for the company depends on keeping properties occupied, increasing rents where possible, and maintaining a manageable level of debt given the interest rate climate. Its use of joint ventures helps it grow while sharing investment risk, and preferred equity investments in other properties, treated as loans in accordance with GAAP, provide additional sources of income outside its core rental operations.

Quarterly Highlights and Key Developments

The company’s results were ahead of expectations for both headline earnings (non-GAAP) and revenue (GAAP). Adjusted funds from operations, or AFFO, per diluted share grew to $0.36, up from $0.35 in Q2 2024. Funds from operations, or FFO, held steady at $0.29 per share (non-GAAP). The revenue figure (GAAP) came in above consensus and marked a $0.42 million increase compared to the same period in 2024.

The company's combined portfolio net operating income (non-GAAP), which captures cash income from rent and routine property operations before interest, taxes, and major capital costs, declined to $15.1 million from $15.6 million versus Q2 2024. This drop reflected a combination of lower same-store net operating income (non-GAAP)—particularly in key Sun Belt markets like Georgia, which saw a 7.6% decrease, and Texas, down by 12.0%—along with higher operating expenses across payroll, repairs, and property taxes. The occupancy rate in the combined portfolio was 94.1%, slightly lower than the prior year, while average rent per occupied unit increased just under 1% to $1,399.

Repairs and maintenance expenses saw a sharp increase. Meanwhile, the company continued to execute its value-add renovation program, completing upgrades to 26 units that led to an average monthly rent increase of $121 per renovated unit. A new acquisition after the close of the quarter—1322 North, a 214-unit property in Auburn, Alabama—was made for $36.5 million in partnership with a joint venture, using both new equity and $7.0 million drawn from the credit facility.

The company also repurchased 63,356 shares at an average price of $15.84, raising its year-to-date total to 142,080 shares, and the debt service coverage ratio stood at 1.56, suggesting good capacity to meet interest payments. Preferred equity investments outside its owned property base continued generating high notional returns, which are treated as loans in accordance with GAAP. The quarterly dividend remained at $0.25 per share, unchanged from Q2 2024.

Management Outlook and What Lies Ahead

Management did not publish explicit financial guidance for the upcoming quarter or the remainder of fiscal 2025. There were no quantitative forecasts for adjusted or normalized earnings, occupancy, or rent growth in the earnings materials or related conference call commentary.

For investors, the company's ability to keep delivering on strategic joint venture partnerships, contain expenses, and maintain dividends will play a key role in its near-term outlook. The quarterly dividend was steady at $0.25 per share.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,046%* — a market-crushing outperformance compared to 181% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*Stock Advisor returns as of August 4, 2025

JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.