BRT Agrees To Buy Bradenton Apartments For About $80 Million
Combined portfolio NOI was $15.2 million in the second quarter, with FFO and AFFO unchanged at $0.29 and $0.36 a share.
BRT Apartments Corp. (BRT), a multifamily REIT concentrated in the Southeast and Texas, reported a wider GAAP loss in the second quarter of 2026 while funds from operations held at the year-earlier level and combined net operating income edged higher.
The company recorded a net loss of $3.2 million, or $0.19 a share, compared with a $2.6 million loss, or $0.14 a share, a year earlier. Funds from operations were $0.29 a share and adjusted funds from operations were $0.36 a share, matching the second quarter of 2025. Combined portfolio NOI was $15.2 million.
Equity in earnings of unconsolidated joint ventures flipped to a $1,000 loss from a $299,000 gain. Unconsolidated joint-venture revenues were $13.8 million, and BRT’s share of those properties was a $1,000 loss.
Consolidated total revenues were $24.5 million, with rental and other revenue from real estate properties of $24.0 million. Real estate operating expenses were $11.4 million and interest expense was $6.0 million. NAREIT funds from operations attributable to common stockholders were $5.5 million.
Occupancy and rents ticked higher on a combined basis. Average combined occupancy was 94.4% in the quarter ended June 30, 2026, versus 94.1% a year earlier. Combined weighted average monthly rent per occupied unit was $1,423. Consolidated occupancy was 94.5% and consolidated rent was $1,374; unconsolidated occupancy was 94.2% and unconsolidated rent was $1,516. Combined units were 8,311 across 31 properties owned, versus 7,947 units and 29 properties a year earlier. Consolidated units were 5,420 and unconsolidated units were 2,891.
On June 2, 2026, BRT agreed to acquire Ranch Lake Apartments, a 336-unit property in Bradenton, Florida, for approximately $80 million, including assumption of an approximately $45.7 million HUD-insured mortgage at 2.91% that matures in 2056. Closing is anticipated in the first quarter of 2027. The company also said it anticipates that in August 2026 it will acquire, through a joint venture in which it anticipates a 70% interest, a Houston multifamily property for approximately $33 million, with an approximate $23.4 million mortgage maturing in 2033 at an estimated 5.5% annual rate.
In July 2026, the company refinanced the maturing $27.8 million mortgage on Civic Center 2 in Southaven, Mississippi, with a new $47.9 million loan that matures August 1, 2036, bears 5.38%, and is interest-only through maturity.
BRT repurchased 202,828 shares in the second quarter at a weighted average price of $14.28. From July 1 to July 16, 2026, it bought 48,523 shares at an average of $15.12. As of August 3, 2026, it was authorized to repurchase up to approximately $4.9 million of stock. The company declared a $0.25 quarterly dividend, matching the year-earlier payout.
The value-add program rehabilitated 26 units in the quarter, with estimated rehab costs of $140,000, or $5,400 a unit, an estimated average monthly rent increase of $108, and an estimated annualized return of 24%. The company listed 171 units available to be renovated over the next 24 months. Total capital expenditures were $2.8 million, of which BRT’s share was $2.5 million.
Cash and cash equivalents were $22.7 million at June 30, 2026. Consolidated mortgages payable were $469.4 million and junior subordinated notes were $37.2 million. The revolving credit facility of up to $40.0 million remained fully available, with maturity in September 2027. Debt to enterprise value was 71% as of June 30, 2026.